Understanding

Cooperatives
Case Study : Amul
 What are Cooperatives,
Cooperative Societies or
Cooperative Organisations?
 “A cooperative organisation is an association of persons,
usually of limited means, who have voluntarily joined
together to achieve a common economic end through
the formation of a democratically controlled
organisation, making equitable distributions to the
capital required, and accepting a fair share of risk and
benefits of the undertaking.”

A cooperative is formed when individuals organise together around a common usually economic goal. For business
purposes, a cooperative refers to the creation of a nonprofit enterprise for the benefit of those individuals using its services.

“A cooperative society has its

Indian objective, the promotion of

Cooperative economic interests of its

members in accordance with
Society Act, 1912
cooperative principles.”
A cooperative organisation always prefers

(1) Service instead of profit maximization,

(2) Survival of the weakest instead of survival of the fittest,
(3) Self-help and self-reliance instead of dependence on external bodies.
(4) Development of moral character of members instead of emphasis on
pure material development.

1. Voluntary Association:
2. Spirit of Cooperation:
3. Democratic Management:
4. Capital:
5. Fixed Return on Capital:
6. Cash Sale:
7. Moral Emphasis:
8. Corporate Status:
Types of Cooperatives

1. Producer Cooperatives

2. Worker Cooperatives

3. Consumer Cooperatives

4. Credit Unions

5. Retail or Purchasing Cooperatives

6. Social Cooperatives
Amul : The beginning…
 Registered on 1st December, 1946 as a response to the exploitation of marginal milk producers by traders or agents of the only
existing dairy, the Polson dairy.

 Angered by the unfair trade practices, the farmers of Kaira approached Sardar Vallabhbhai Patel under the leader ship of a local
farmer leader Tribhuvandas K. Patel.

 He advised them to form a cooperative and supply milk directly to the Bombay Milk Scheme instead of Polson.

 He sent Morarji Desai to organise the farmers.

 In 1946, the milk farmers of the area went on a strike which led to setting up of the cooperative.

 Later Dr. Verghese Kurien, joined the cooperative and it grew under his leadership.

 AMUL is derived from Sanskrit word, Amulya, meaning invaluable. It also stands for Anand Milk Federation Union Limited.

 Today, Amul is a cooperative brand managed by a cooperative body, the Gujarat Co-operative Milk
Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk producers in Gujarat.

 Amul spurred India's White Revolution, which made the country the world's largest producer of milk and milk
products.
Type Company

Industry Dairy/fast-moving consumer good (FMCG)

Founded 1946; 73 years ago

Founder Tribhuvandas Patel

Headquarters Anand, Gujarat, India

Area served Mahishmati

Key people Ramsinbhai P. Parmar (Chairman)

Revenue ₹29,225 crore (US$4.1 billion) (2017-18)

Number of 752 (Marketing Arm)

employees 3.6 million (milk producing members)

Website www.amul.com
Recruitment

Recruitment Sources

Internal Sources
Present Permanent Employees
External Sources Employee Referrals
Former Employees

Campus Interview
Unsolicited Applications
Application Bank
Placement ASgencies
 Superintendent CA/ICWA No training period. In case of fresh
recruitment, exceptional qualification from
reputed college

Deputy Superintendent Inter CA/ Inter ICWA/ BE 1 year training period

Senior Officer
M.Sc (Agriculture)/ MRS/ MRM/ MSW/
MLW/ MBA/ B.Tech(DT)/ MCA/ ME Biz 1 year as trainee

BBA Management Trainee for 1 year

Junior Assistant

Apprenticeship Lab Assistant for 1 year 3 months for B.Sc/ M.Sc,

B Grade Worker B.Sc/ M.Sc/ Diploma Engineers 1 year for Diploma Engineering. Then 2-3 years as trainee
technician
C Grade Worker
B.A./ B.Com/ M.Com/
MA/ MSW/ MRM/ MRS

E/F Grade Worker Professional qualification with work experience

2-3 years apprenticeship, then temporary
G Grade Worker worker,. Then G grade worker after 5 years of
SSC/ HSC experience