 Now, someone we've been waiting to hear, someone who we haven't heard so much in the public domain and we're very, very lucky that we have Mr. Aryasodi here amongst us, Mr. the Managing Director of Amul. He's going to be doing the keynote address and he's not going to get up on stage unless you acknowledge him with a loud round of applause. I'll just take just just a minute to of course you don't need any introduction but did you guys know he's still in his first job? This is his first job. He's had the opportunity to work with Dr. Varghese Kurian of course and he's continued the DNA that was instilled within this cooperative, a cooperative that believes in providing value to the farmers of the country of course starting with 3.6 million farmers in Gujarat itself into the past few years now in Haryana, Rajasthan, West Bengal among other states as well and providing value for money as far as the consumer is concerned. That is something which the corporates still need to learn and we are very, very grateful that you're here. Amul of course also is derived from Amulia if I'm not mistaken, something which is priceless in the sun strip and it's also an acronym for Anand Milk Union Limited. It's more by default than design. I see. All right, thank you so much for Mr. Sodi protecting the time for being here and all yours of course later on we would also encourage him to do a one-on-one Q&A with Mr. Pradeep Duryali, CEO of Saka and post which we can open the floor questions from the audience. Thank you. Thank you. Good evening ladies and gentlemen. First of all, I thank exchange for media for giving this opportunity to interact with the stalwarts of marketing or branding or media. When I got this invitation that I have to come and speak as a keynote address for this Indian marketing awards, I was happy and surprised. Happy. Naturally, you're getting this opportunity coming to the capital of India and talking to the best of the people in the marketing. Otherwise, here's a small place called Anand which is one and a half lakh population town. Surprised that why a dooduala has been called because basically milkman is milkman. Last 35 years I've been selling milk and milk things like dahi, chaat, butter, etc. It's good. Well, Amul is no doubt is very iconic and ageless man. Last more than 68, there it's growing. You are seen only as you are aware about only one face of the Amul brand. Amul brand has two faces. And when I say two faces, I mean our business is basically nothing but we in today's modern level we say we are in the business of C2C, cow to consumer. And the very important phase which is very important for our 3.6 million farmers for whom Amul brand is a source of life view for the millions of village farmers is a source of empowerment. And that too 82% of them are landers of small management. So their trust and faith in this brand is there in fact that's where we are growing. And the other side of the supply chain are consumers who have got faith trust in this brand last 70 years and it's growing because of the basic thing is we give tasty product on our food product has to be tasty and made out of best technology and no doubt very for money. Before I start how this brand is ageless or iconic and it's growing I always remember Dr. Varghese Purin our founder chairman his Mool Mantra for branding on marketing. First he said brand or marketing we are not doing for the business but it's a tool for development of the most enterprise society of India. So you have to see this brand is working. Secondly he said if you really want that your brand should become ageless or iconic then the trust and faith of the stakeholders in this brand should be like trust and faith you have got in your religion because once that faith comes you don't question you don't look here and now. I mean if you see which are the best brands today for centuries or a lot of all the richest brands you take Hinduism own is the brand arty is the jingle it has not changed and we don't look here because we have done all. So but this faith in trust how it is not overnight job it cannot be it cannot come by advertising it cannot come by giving some big displays etc it is the it has to come from inside that it is stigma. So I'll just start with it. First let me explain to you the context so you know what I'm talking. Milk India is world's largest producer of 850 millimetre but fortunately we are also world's largest because the biggest market in the world of milk or dairy products is India and it is growing a much much faster pace than the world market. So we are very fortunate that we have a product which is growing and will be there for next I mean you know until human being is there here what our stomach it is going to be there. This is just the some data the world is 800 millimetre run so India is 18.5 percent organized sector is only 18.5 this is opportunity daily sector still only 20 percent you can say is organized remaining 80 percent is still used unorganized so enough for everybody to grow in this market but it was not the case 60 years back we were in business state we were importing dairy products we had a shortage like other adjoining countries we have won if you see all countries around us are still in the same state Pakistan, Sri Lanka, Bangladesh all are need deficit and importing but original inspiration claim you know Sardar Vallabhai Patel and if you see the business strategy which he told of that type farmers who are exploited by the private entrepreneur person who has exploited them not given the good price of milk and he said if you want best price for your product you should not only produce milk you should also process and market it he gave this lesson 1946 to the farmers again you if you market yourself then only you can get maximum because you know so from that date started 1946 I will start it and for 250 litres of milk and two small village cooperative society the biggest thing which we got is very important for agriculture we got the market access to the Bombay market Bombay was deficit and we got a contract from the British army in 1946 and then we continued with that so milk was transported in railways to the Bombay and then to for remote market naturally we invest in technology for the extended shelf life products more products were introduced as that went and then over a period of time last 60 years you can see the number of products have been developed as the time came and needs arrived rose and today if you see what is this brand first thing is this brand is now 33000 crore and from 250 litres we started in 1946 not today we are collecting on 220 litres per day every day from the farmers 36 million 3.6 million farmers and basically the owners are the most famous section like I said 82 percent are below the this transportation amul brand of India's most powerful today amul is the India's biggest food brand and it is owned by the farmers it is not owned by any individual or the God or anything it is owned by the 3.6 million farmers of Gujarat and what really work for this brand this is the I mean basic business strategy to serve the interest of milk put a value for many value for many means like in the beginning I said 3.6 million farmers who are pouring milk every day twice and they want best price for the produce and also other side of supply here to provide quality products to millions of consumers value for money by giving the best product you see this business strategy which was evolved 70 years back is still continuing and if you look into this this is diagonally opposite to any business strategy which any other corporate house will be having in India any corporate house or any CEO of any private company will like to buy his raw material as low price as possible and like to sell finished product at as high as possible so that maximum gross profit or a beta can be maintained whereas in amul mandate given to me by board is totally opposite they want me to buy raw material at as high as possible and I have to sell all the product at such a price that whatever raw material is offered I cannot say we could have market is X I buy X not whatever is offered I have to buy converted to evaluated products and sell at a such a price that millions of consumers happily buy it and they feel happy after that is very very important then they will come milk is all 365 days production I can't say this is a slackness there is demonetization this that's why I'm not taking nothing milk factory cannot stop whether Diwali is there strike is there demonetization because buffalo we're not stocking and we also won't stop consuming morning tea or milk so it happens all 365 days never any of amul factory last it is never closed it's a continuous system so this business is today if we are number one in India daily it is because of this business philosophy and this is we cannot trust you can see when I say that faith and trust in the brand is like a legend and you have to show that because you can't just talk on the stage you can't give your if you just are giving you last 10 11 years milk requirement prices average increase is 11 percent nowhere in the world this increasing new prices happened and so this is giving us more business by we are giving us more milk and we have been doing whatever we are doing with best of the product made best technology and quality you see this is very important when I say the best quality product does not mean best quality what it was 50 years back most of this what happens is this that if your brand is successful you have the major market share like you have a bottom more than 90 percent the next job of any CEO all the people is how to reduce cost of production in food products how you can reduce the cost of production change replace expensive food ingredients with a cheat or synthetic or artificial and most of the companies are doing that that add more sugar replace dairy fat with dairy fat with the vegetable fat which is one four one six percent because ultimately their business objectives are reduced cost of ingredients but and if you see amul what butter was 60 years not a single change in recipes not a single change in ice cream recipes not a single change in dairy butter is in spite of computers bring energy so that is a first and faith and second is what you give to the consumer you should not think which I remember talk to murgis courier you say never think you are smarter than you are always think he is smarter and you cannot outsmart it simple example today i am selling one kg of milk powder or baby food tomorrow is rising i have to increase price i say my computer is my day so why not reduce the weight to 950 gram or nine and a half and one day or other you'll come to know and that day he may have purchased may continue to buy your product but he's using faith in the brand and faith is like that from that day we have decided what may come we'll never take any business decision any marketing decision we are trying to short chain or try to i say in very cruel languages cheat and this is just a one butter 100 gram last year 60 years you see the inflation more or less price of butter is increase has been increased with the inflation the other very important thing which we have invested in the brand you see brand doesn't mean only marketing or brand building in advertising brand building your consumer position from all the biggest product is very important supply chain we maintain four types of distribution highway for one is fbl which most of the fmcg company maintain and then second is for frozen for the ice cream and other thing third is cheese product that is cheese and butter and fourth very very important which i don't think any company in india is having that is fresh product distribution we have product is manufactured and packed at the near consumption center within three four hours it is reaching to all the markets no shortcuts no gimmicks no freebies and the other important very very important for the brand building i think which is consistency in communication over a long period of time you have seen i'll give you know all the and any brand whether it's a butter or ice cream or milk we have seen if any positioning has been taken whether actually particularly and if it is there we have never tried to change it or we have never allowed us to change it just i'm telling you the brand between amul study in 50s when none of the indian brand used to advertise a brand you can see these are the print ads of some problem here this is a butter ad of 60s if you see there's a consistency in communication butter which started in 50s only happens of amul butter this is all when color came in 70s and then we answer to we also produce a film called manthak gujarat milk marketing was the producer for this ivy eclips movie manthak where we told try to tell people what is amul what is behind amul and this is also breast-stated for the products and then 80s tapir for amul chakra milja baron was there other stealthy which is very well bought for the amul brand is the umbrella branding strategy i mean if you see all our products are under one single brand there have been number of times we are advertising in the sea or some expunge would have recommended going for sub brands or new brands but our thinking has been if you have more brand naturally you have to nurture them you have to invest in investment will come out of consumer pocket only i mean you are not going to get from outside and that and our budget for any brand building and advertising has been never never more than one percent and last five seasons here we have never spent more than 0.8 percent of our turnover on advertising or marketing whereas most of our company ffcg of food product is spent on 8 to 14 percent and talk about this when you say you are definitely you need brand building definitely you don't advertising but you need that much which is just to inform to the consumer and then come out the creatives and the media planning that this limited budget you can reach to the maximum consumers and most of time you see brands are what we have found is we feel that number of brands are basically to meet the aspiration of new marketing director new co new advertising everybody wants to come and leave he's a very legacy in the organization see i've built this brand i've come out to this campaign and then naturally we have got more brands we need to invest more taste of india brand we am going to start in 19 and we continue the same campaign which we started in 90s and this is our latest so amul change also one is for amul butter girl in the last 50 years running we started and it has achieved i mean longest running campaign out we started with outdoor this was the first left side is the first holding which we have put in 50 years back and then with the time she has commented on anything anything happening anywhere and really nobody has i mean let me tell you she has commented on all the prime minister ex-prime minister political toposy celebrities sports person and sometimes positive sometimes negative nobody minds because but she had a kind of a mind maker people take it where you want to care someday once or twice problem happened but we handle it and let me also tell you this campaign is created by our same ever advertising agency for the last 50 years and they have got food they don't show us the creative we see the creative and you see it i mean nothing they just put it our chairman doctor work is going to see where you hire professional agencies whether it is advertising agency or the architects or anybody you are hiring them because of professional profit so give them full freedom and then try to get best out of them and now later on we shifted from outdoor to press also and then later on now we have come out a compilation of our best of the topicals as suggested by a few of the celebrities now we have three books on amul amul's india just talking about our amul topical campaign only this is very very important thing when any campaign if it is working well any positioning is working well any brand built up is working why to change it utterly but really delicious amul butter last 50 years no changing position amul taste of india we started 90s agencies can come out with the new creatives or kbc which every two three years but basic theme is the amul taste of india on last 50 years we have got amul for amul milk amul pita india and it's not that we don't get i mean suggestions or proposal from ad agencies and creative because some changes happen some creative directors change so naturally she'll come out with new creative that amul milk pita is fresh milk pita india so something you like to add but we have never we tell them you can do air as a change but once you have chosen the positioning you have to stick to it and now when next time any new product you are coming over to positioning you should take it very seriously once you suggest and create it is not going to be changed for life you know and this consistent strategy and exhibition is really paying us dividend with the minimum of a budget and this has happened mainly and mainly because of stability at the core team whether advertising is the same people like if i am in my first job for the last 35 years fc burqa is there shashisina is there when he joined he joined an amul account he's now co so he's there he knows or silvestre dakuna and now his son round they are right from day one so stability in the core team and in my team also is our marketing head or sales just been all around their first job right from day one and all most of us work we talk to work is for you so we know what is there what is our value system what is organization DNA you see organization is very very important some people ask me nature that is also impacts brand along the founders from the dna of any organization and later on people like us who join we get we look at get the same dna but if any organization which get people especially at the policy making level from different culture different value system you can understand what type of dna of that organization is there and how long it will survive all on such brand but all outdoor is i mean there's some railway locomotives are very unique thing which we have been doing last five years it's western railway lot of locomotives branded amul and then 80s we started some omulsupi and quiz style just a few examples i don't think i'm i'll go just very fast now and how milk such a i mean why i say local product i said i really don't know what i mean because very very this is the captain all with the amul doodh kita india which has become the maa out of a genus how product has been changed from the old glass bottle line to pt and also how we are trying to promote milk for all the every meal eat milk with every meal so youngsters can now eat and drink more of milk making it a very happening brand product and this is very bringing the brand very close to consumer when 10 years back we saw that lot of words best modern for my store chain are coming how if they should not i mean squeeze us like they have done in the western world so so that our farmers continue to get the maximum share of consumer in india using milk farmers get 85 percent what consumer pay like in daily money nowhere in the world farmers get that much in most of the developed world like europe or usa farmer gets only 36 to 38 percent what consumer pay in the cities in milk especially fresh pasture is made with you by the morning the whole supply chain right from factory to the consumer is only managed in 15 percent processing packing transportation distributor margin retailer margin all in 15 percent that is such then only farmers get them best price for their produce so now we started with this retail august more than 8000 our own retail outlets we have got you can see anywhere on the real estate and with best of the education and schools police army everywhere and with the change how brand has changed is digital is the way everybody's talking so we are our most present on digital media and we have tried to use it as the best way i mean how asking consumer to send selfies of drinking eating our product having competition and same is for trade activities also for displays not trade is also encouraged to post their film and some there have been some captains exclusively created for the digital media just as our age less iconic basically so deliver is much more than what you expect when you pay for it consistency in communication strategizing and execution that is very very important if you want to build a business plan and with the anticipating the social change happening you have to change you have to make brand contemporary and cool or sexy whatever you want to say and always keep brand how to keep your brand fresh and relevant and just while concluding i like to say that your brand or any brand can be ageless is all the stakeholders whether suppliers distributor employees or consumers enjoy the fruits it's not only the manufacturer or the marketer then one day or other thing things are going to happen and successful amulets because our suppliers our employees our consumer they enjoy they feel happy by producing by selling by consuming our brand thank you very much