Amul India: A Social Development Enterprise

Abstract

Amul initiated as an experiment in two villages, collecting 250 kg of milk per day. As the cooperative expanded its branches over the course of its 50-year journey, Amul boasts of more than six million kilograms of milk collection daily. What had initiated as a process of liberation from the Dairy King, brought a revolutionary transformation across the country. This case provides a vivid example of how a cooperative can become the catalyst for social change and rural development. This case takes us through the journey of Amul, from its dawn period when it was attempting to take root, through its progression along the enterprise life stages and the associated challenges. Insights into the quality of leadership and the farmer/management relationships are its defining characteristic. The Amul Model narrowed the gap between the producer and the consumer, connecting the dairy farmer to the consumer through its organic network. The success of this model ignited interest across India, where this model was replicated, in essence leading to the White Revolution. The case provides sufficient insights and learnings to develop a framework to comprehend the basic essence of a prosperous social enterprise — factors that make it successful. It is this learning that this case desires to impart to its readership, enhancing interest in this rather lively subject of social enterprises.