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Leadership in Organizations - Amul (Case Study)


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a look at the Leadership at Amul under Dr. Verghese Kurien

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Leadership in Organizations - Amul (Case Study)

  1. 1. Corporate Leadership Of Dr Verghese Kurien Leadership in Organization Presented By – Aditya Vikram Cheema Kushal Karamchandani Nachiket Kulkarni Rishabh Sinha Ishan Parekh Arthava Oswal
  2. 2. Agenda • Corporate Leadership • Early Years • Birth of Amul – True Leadership of Dr. Verghese Kurien • Dynamic Leadership • India Revolution • Critical Evaluation of the Leader in formation of Amul
  3. 3. Early Years • Born on November 26, 1921 in Kozhikode, Kerala Served as Civil surgeon father in British Cochin • Graduated in Physics from Loyola College, Madras in 1940 and then did B.E. (Mech) from the College of Engineering from Madras University • After his engineering, he worked at Tata Steel Technical Institute, Jamshedpur from where he graduated in 1946 • He also went to USA on a government scholarship for his Master of Science in Metallurgical Engineering (with distinction) from Michigan State University
  4. 4. BIRTH OF AMUL • Taken over by Dr Kurien in 1950, Amul Dairy was founded to stop exploitation of farmers by middlemen • Initially known as Kaira District Co-operative Milk Producers Union began with just two village societies and 247 litres of milk headed by Tribhuvandas Patel as its founder chairman • Based in 'Anand' (Gujarat), Dr. Kurien's vision and extraordinary intelligence built the dairy development cooperative model into one of the largest and most successful institutions in India, called, AMUL
  5. 5. Dynamic Leadership • India's first Prime Minister Jawahar Lal Nehru visited Anand to inaugrate AMUL "factory" and he embraced Kurien for his groundbreaking work • The Amul pattern of cooperatives had been so successful, that in 1965, Shri Lal Bahadur Shastri, (then Prime minister of India) created the National Dairy Development Board (NDDB) to replicate the program on a nationwide basis citing Kurien's "extraordinary and dynamic leadership" upon naming him chairman • Kurien also set up GCMMF in 1973 to sell the products produced by the dairies. Today GCMMF sells AMUL brand products not only in India but also overseas
  6. 6. Journey In Brief
  7. 7. Vision & Mission
  8. 8. The man who Revolutionized White • A rare visionary who always translated his vision on mission mode • He had an astute sense of management and marketing. • He attempted to replicate the Anand Model nationally through the launching Operation Flood Programme (OFP).
  9. 9. The Noble Milkman • He believed that the rural development process required professional transformation. – IRMA – Institutions providing skill- oriented training – Tribhuvan Das Foundation
  10. 10. From Milk to Management • The AMUL story – Operational flood 1,2,3 – Milk prod. Tripled – Value of the increased production of milk is Rs.2,400 Cr. – Dairying has become the largest rural employment scheme in this country.
  11. 11. Innovation • A great believer in innovation • Development of the automatic milk bulk vending system to compete with the urban liquid milk dwellers. – It was re-engineered from a similar loose (pasteurized) liquid milk supply system established by M/s Conosupo, in Mexico. – The vending system was invented originally by M/s Rowe International of USA. • The re-engineered Indian bulk vending system was established as more functional and economical than the original system!
  12. 12. It is because of Dr. Kurien that India today contributes about 17 per cent of the total milk production in the world. Amul, with a turnover of over Rs. 13,000 crore, is Asia’s top milk-producing brand and is counted, with one of the best recall values, among the world’s leading brands in any sector. From one milk project to a larger one, the “Milkman of India” saw India emerge from a milk- deficient country into the largest milk producer in the world, overtaking even the once milk- abundant Netherlands.
  13. 13. Year Name of Honor 1965 Padma Shree 1966 Padma Bhusan 1986 Krushi Ratna Award 1989 World food prize (USA) 1993 International Person of the year award (dairy expo) 1999 Padma Vibhushan
  14. 14. 3 Tier Structure
  15. 15. Achievements & Anecdotes
  16. 16. Anecdotes • Fiery, Blunt & Controversial – Prime Minister Lal Bahadur Shatri’s visit to Anand, Gujarat. • Fearless & Wicked Sense of Humor • Solving the bigger Problems of society. • He dint enjoy drinking milk, but sold it all of us.
  17. 17. • Architected a platform that enabled people to build/sell on top of it. • Beyond the definitions of traditional v/s incremental innovation. • Created the farmer-owned & controlled business. • Built an insular system.
  18. 18. • On Request from Shyam Benegal, Mr. Kurien agreed to fund a movie to portray human stories surrounding cooperative dairy movement. • The film won national awards and continues to be considered as the best tool to educate farmers about cooperative movements. • Amul Group created some of the best documentaries and literature.
  19. 19. Critical Evaluation of his role
  20. 20. Social Entrepreneur Sent on a scholarship and returned in 1948 and joined the Dairy Department of the Government of India Posted as dairy engineer to the Government Research Creamery, a small milk powder factory, in Anand Used his skills for no personal profit One of the first social entrepreneur India was to ever see
  21. 21. Kaira Union made a strong lobby, which contended that buffalo milk could not be turned into milk powder  Buffaloes give double the milk in winter than in summer  Bombay was lone consuming centre and didn’t want irregular milk flow into the city  Bombay Milk Scheme preferred to import milk powder from New Zealand to meet the city's demand prompting Kurien to ask: "Mr Khurody, are you the Milk Commissioner of Bombay or New Zealand?“ Another problem during that time was compettion from "Polson" brand  Before the independence British Government pushed Pestonjee to supply milk from Kaira to Bombay.  Scheme helped everyone but the farmers who struggled to get a fair price for their milk against the middlemen working for the Polson Dairy
  22. 22. Solution • In 1949 Mr Kurien took charge and bought a pasteurising machine for 60,000 rupee • Investment paid off; the milk could now reach Mumbai without spoiling; and the co-op idea grew apace • Credit of creating the country's best-known brand and that too for a product of rural India turned out by co-operatives • Pride in seeing an Amul fronting every shop shelf with Nestle and the rest making the rear
  23. 23. Empowering the poor  “Socialism” never described what he was doing  Empowerment of the rural poor was his real aim, and milk merely the best tool available  His dairies taught poor farmers to value cleanliness, discipline and hard work  Liberalisation in 1991 came as an appalling shock and he had no intention of letting private companies back into the dairy business
  24. 24. Courage of his conviction  Chief Minister of Rajasthan, Barkutallah Khan, did not agree to autonomy being given to the milk cooperatives  Rajasthan’s farmers were not as capable of managing their businesses as Gujarat’s farmers  Kurien then said that if the CM’s constituency, Jodhpur (rural), was capable of electing him, surely they could manage their own little milk businesses  Indira Gandhi also questioned Kurien on the capacities of farmers to manage big business  Kurien is then reported to have told her that ‘you are now talking like the British who said we will give you freedom when you are ready’
  25. 25. Innovator  Inception of a nationwide cooperative sector  Invented the process of making skim milk powder and condensed milk from buffalo milk instead of from cow milk  Amul girl was created Dr Kurien suggested a mischievous little girl as a mascot with two requirements i.e easy to draw and memorable  Range of products
  26. 26. Nation Builder  Taken India from milk deficient to milk surplus nation  Built a whole family of institutions around NDDB to realise his dream of a strong Indian dairy industry founded on cooperative lines  Founded the Institute of Rural Management at Anand (IRMA) and over 30 years, IRMA graduates have made a mark in the cooperative, agri-business and non-profi t sectors of the Indian economy  Believed in preventing MNCs eating into Indian companies