United we stand: Amul’s umbrella brand across dairy unions

VADODARA: Liquid milk produced by 13 dairy cooperatives that constitute the Gujarat Cooperative Milk Marketing Federation (GCMMF) will now be marketed under just one brand - Amul.

After a long and simmering row over consolidation of all the brands owned by the constituent units, a GCMMF board meeting held here on Tuesday finally decided to market liquid milk across the state as Amul from October 1. Outside Gujarat milk is sold only under the Amul brand name.

Apart from strengthening the Amul brand, the decision is expected to boost profits to the tune of Rs 600 crore annually from savings in marketing and advertising costs, transportation, storage as well as a an increase in sales volumes following the brand consolidation. GCMMF markets nearly 36 lakh litres of milk in Gujarat daily, out of which 26 lakh litres are sold as Amul. Twelve other brands sell nearly 10 lakh litres.

While GCMMF is yet to come out with the details of the new system, other dairy products produced by the various district cooperatives will also be brought under the umbrella brand of Amul “in a phased manner” over the next year.

Currently, some district cooperative unions sell milk under their own brand names. The Vadodara union calls it Sugam, while Surat calls it Sumul. Uttam in Ahmedabad, Gopal in Rajkot, Vasundhara in Valsad and Panchamrut in Panch-mahals are the other brand names. From October, however, all milk sold by unions will be branded Amul.

Tensions arose recently when representatives of some milk unions, including the one at Mehsana, talked about going it alone. Vipul Chaudhary, chairman of the Mehsana’s Dudhsagar dairy, had earlier called for ‘self-reliance’ by floating the idea of tying up with private players (read: Reliance Industries Ltd) to market the cooperative’s successful brand Sagar. On Tuesday, Chaudhary took everyone by surprise when he announced the joint branding decision even before the official spokesperson emerged from the board room.

According to Parthi Bhatol, GCMMF chairman and spokesman, the meeting was attended by all members barring two from Surat and Ahmedabad. But Bhatol hastened to add that nothing should be read into the absence of Mohan Bharwad of Ahmedabad and Manubhai Patel of the Surat. “Surat and Ahmedabad could not participate in this crucial deliberation due to some unavoidable circumstances. Nothing should be read between the lines for their absenteeism.” Both unions are understood to have endorsed the decision in principle.

According to Bhatol, who is also chairman of the Banaskantha dairy, the consolidation of marketing under Amul was done in view of the competition from private players. He emphasised that there was no dispute between the unions.

“With private players planning to enter the milk market, it would be in the interests of all milk producers if we leave our local brands and adopt Amul, which is the strongest brand across India. This attempt at making Amul stronger will bring greater benefits to member unions as well,” he said.

Agreeing that the consolidation move would help the unions, Govind Ranparia, chairman of the Rajkot district cooperative, said it would help them “cut down on advertising and marketing costs.”

Summing up the consensus, Chaudhary said: “It is an achievement for GCMMF members as everyone has agreed to have Amul as a common brand for liquid milk across the state.” Amul milk will be available across Gujarat from October 1, 2006.