I remember reading an interview of Verghese Kurien ( father of the 'white revolution' which transformed India into the largest producer of milk in the world and one of my heroes) where he said "We don't need foreigners telling us how to fry chips ( the potato kind) , my grandmother can do it better". He was responding to a question on the government allowing MNC's to enter the food/snacks market, under the pretext of it bringing in new technology. For some reason this statement of his has been etched in my mind. Many, at that time said he was saying this since he was afraid of the competition. Several people at that time also predicted the end of Amul saying that it would not be able to withstand the onslaught of MNC's and transnationals.
Well ten years hence Amul still continues to thrive. Not only that, the reverse of what was predicted is happening. The MNC's and transnationals are getting creamed by Amul.
This article which appeared in the New York Times talks about the recent successes that Amul has had in its recent foray into India's nascent ice-cream market. The market which is expected to grow at 20% annually is currently dominated by Hindustand Lever the Indian arm of Unilever. Amul is expected to emerge the market leader in ice-creams by the end of this calendar year.
What does HLL do when faced with defeat. Here's what the article had to say.
At Hindustan Lever, there is scorn for what is seen as Amul's concentration on grabbing more of the existing market share rather than working to expand it. "They are a farmers' cooperative, and they will always cater to that constituency," said J. H. Mehta, executive director in charge of the ice cream division. "Our constituency, on the other hand, is consumers."
Who afraid of whom now ?
Leveraging on its other strength of being the number one producer of cheese in India Amul has started selling pizzas thru its franchises. Priced five times lesser than its rivals Amul franchises are amongst the fastest growing pizza chains in the country.
Formed as a cooperative in 1946 by Moraji Desai under the advice of the "Sardar" to protect the farmers from rapacious milk contractors, Amul today has come a long way under the stewardship of Dr.Kurien. This is the swadeshi movement that Gandhi and Sardar spoke about and not the protectionist philosphies adopted and propogated by the Nehruvian Marxists.
In the meanwhile I am awaiting the time when I can buy Amul products at the local supermarket here in So.California! Now wouldn't that be "utterly delicious" !
Posted by sai at August 20, 2002 05:11 PM