 Ladies and gentlemen, please put your hands together for Mr. Jayan Mehta, Chief Operating Officer, Amul India. Today, through our 95 dairy plants almost across the country. So since my friends from Jagran are here, this is more than the combined circulation of Jagran, Bhaskar, times of India, Hindustan times, Malayalam, Manorama, Gujarat, Samachar are put together. Then we do close to 250 tons of cattle feed and we have more than 50 products, 1,000 SKUs and a million retail outlets sell these products. And this is what is the ranking of the top eight dairy companies of the world. And we should be in the top five in the next couple of years based on our current growth rate. Mind you, most of the companies on the top are multinationals or operating in larger geographies. We only operate in Gujarat, which is one of the 28 provinces of India. So this is what is the opportunity lying ahead of us. As per this research, we are picked up from the shelf about 6 billion times. But the actual number of packs we do in a year is more than 16 billion packs. So this is the number of transactions. The number one brand in the world as per this research is Coca-Cola. We are actually double the number of transactions we do in a year as compared to Coca-Cola. And 13th largest as far as the business is concerned, among the top dairy brands are the strongest dairy brands in the world as per some different researches. But this is essentially the journey we want to discuss today. And this is how Amul over the last 76 years, which started in 1946, a year before India's independence. And then how the journey progressed of starting on the marketing campaign, setting up a distribution network, focusing on milk marketing, focusing on Amul parlors and other business, focus on fresh products. And we'll talk about the next 25 years also later. Brands have an origin story. But every brand has some identification of how that brand was created and how that brand became successful over the period of time. Amul is a very unique case in which this brand made country something proud of. So this is the story which I want to narrate of how a milk cooperative made India the largest producer of milk in the world. Typically, it is the countries which make brands. If America is strong, their brands are stronger. Japan is strong, their brands become stronger. In India, the story of milk is very, very unique and very different because India's dairy industry did not exist. Though we had a huge mythological evidence of India being a land of milk and honey and milk is an integral part of what we have been doing over centuries. But during independence or just before independence, Indian dairy industry was in a very, very bad shape. And it was said that the gutter water of London was bacteriologically superior than the milk available in the city of Bombay. Farmers were exploited as Anuragji said, and this is where the vision of leaders like Dr. Vallabhai Patel, he inspired the farmers to come together, form a cooperative to prevent exploitation at the hands of the private dairies. And that's how Amul came into being, where the farmers actually had control on all the three aspects of the business, which is milk procurement, processing and marketing. If you have a farmer owned vertically owned structure and the form of a cooperative, which was actually not known in those days. Today, the government has realized the importance of cooperatives and the government actually set up a ministry of cooperation just earlier this year. So you can imagine for 76 years back when this experiment started, how difficult it would have been for the farmers to actually put together an organization. But Amul started with 247 liters of milk in 1946. Today, we are collecting more than 270 lakh liters of milk per day. And it was the combination of two major factors. The key ingredient of success of Amul is that there is a dedicated selfless leadership and competence of technical manpower. So this is where it's a combination of Sri Kibondas Patel and Dr. Kurian as you see in this picture. These are the two gentlemen who actually steered this moment, both with their visionary approach and a selfless leadership. And that led to creation of brand Amul and the Amul girl that we all know very much. We are all students of marketing and this is what has been taught to all of us. We all studied Kotler and the four piece of marketing, which first came up in 1960. Kotler's first edition came up in 1967 and we all swear by all this. Okay, we can add couple of more piece like the purpose which we just discussed and the passion and other things also. But this is the logo of Amul. So you look at it closely, there are four hands. And though as a cooperative which is owned by the farmers is supposed to be farmer centric, the purpose of the entire organization was spelt out in the logo way back in 1946, which says that each of the four hands are representing the four key elements of what makes the organization, what makes the brand, what makes the entire business supposed to be relevant to the society. So first hand is of the farmer, of course he's the owner. Second is of the professional. Third is of the market year and fourth is of the customer. Now these are the four hands built in the logo of the brand, which actually signifies how Amul as a cooperative started its journey and did everything which is possible to be relevant to all four, keep all four of them as a center of their activities. And in the next few slides, I'll just talk about some of the things related to what are critically done and important to the way in which we function. This is what the actual ad in the 1990s we used to do. Some of you would have seen in the reader gizest and several other magazines. So we had to clarify and inform the consumers that India's largest daily complex is not owned by a multinational. It's not owned by a large company, private company, but it is a farmer's organization. And this is what is the Amul model which I talked about. The milk producer is the heart of the entire thing. All the villages of all the milk producers in a particular village form a village cooperative society. Each of the village in a district forms a district milk processing union. And each of the districts in a state form state marketing federation and we directly reach out to customers. So this is a model which directly connects the producers with the customers with all the three aspects of the business, which is procurement, processing and marketing in the hands of the farmers supported with professional management. And that is what actually replicated across the country under the operation flood program in 1965 when the National Daily Development Board was formed. And that the three phases of operation flood 1970 to 1996 resulted into India becoming the largest producer of milk in the world. And today we are producing twice the quantity of milk which United States is producing in a year. So Amul on the left hand side is as I mentioned 3.6 million farmers, 18,600 villages, 18 district unions. And we are the Gujarat Cooperative Milk Marketing Federation is the marketing organization. The same model replicated across India by the NDDB. So there are more than 17.6 million farmer families affiliated to cooperatives in about 200,000 cooperatives, 225 district unions, and every state of India as a state marketing federation. So some of you who are from Karnataka would know of Nandini. And same is case of Avin, Milma, Verca, Vijaya, Parag, and so on so forth. Every state has its own brand which is owned by the farmers of that particular state. And this is how this cooperative model evolved across the country giving great benefits to the producers as well as the consumers. And all this resulted also into one fun fact which is that milk is the largest agricultural crop of India today. The value of output of milk is more than wheat, paddy, oil seeds put together. And we all know India is among the top producers of all these three agricultural commodities. So this is what the power of collectives, of small producers coming together and making India the largest producer of milk in the world. And most important part of this entire piece is that if you spend 100 rupees on any dairy product, 80% of that goes back to the farmer. Now this is the highest ratio anywhere in the world for a simple reason that here, because of the cooperatives, the connect is very, very strong. And that's why farmers get the largest share of the consumer's rupee. It's not happening in any other agriculture product and not happening in dairy in any part of the world. In US, Europe, Australia, New Zealand, producers typically get only one-third share of the consumer's rupee. One-third is by the processor and one-third is taken by the retailer. But this is what makes the Amul model very unique. And also, very important point of the development model is that it's also a model of women empowerment. All the work of rearing a cow, procuring, or I mean, collecting the milk, supplying the milk to the village society, and in our case, running the village cooperative societies largely is done by the women. And the money is also transferred to the bank account of the women members. So this is where the social benefit of this organization is also coming loud and clear. And this is what is also becoming a model about it. The next is about the dairy professional. And you need professionals to collect and process all the milk that we have. So in one slide, if I have to mention what is the dairy industry and where Amul stands today, if the world milk production is more than 900 million metric tons, India is about 20 to 23% of the total milk produced in the world. And organized sector is about 1 fourth, fifth of that. And Amul is about 1 fourth of the organized sector. So roughly 5% of the total milk in India is produced by Amul. And 1% of the total milk in India is handled by Amul. So we are actually now, look, if you think very differently, a startup of 3.6 million farmers. Because the journey is still begun, though we are claiming to be 75, 76 years old. This is, in our minds, still a beginning. And if these startups continue to work the way they have been doing, the journey will be very, very interesting in the years to come ahead. But over the last 75 years, we have 95 dairy plants handling with a capacity of 410 lakh liters per day. Average procurement last year was 270 lakh liters per day, peak goes up to 310, 315 lakh liters per day. We do 1100 tons of milk powder every day. And almost close to 10,000 tons of cattle feed is manufactured and supplied to the farmers. And all this milk is not sold as milk, but it's also converted into a variety of products. And as the brand has to evolve over a period of time, trying to meet the changing requirements of the customers, you also have to develop products. And this is how we created a portfolio of products over a period of time, all under the single brand Amul. And this is what resulted into Amul becoming the taste of India. Innovation is very, very important because the taste and preferences of the customers are changing. So to keep pace with the changing times also, we do a lot of research, talk to the customers, listen to the conversations, and based on that, we've been able to create a wide portfolio of products. But the pace of new product development is quite frantic. We've launched about 250 products in the last five years. About two new products every month is the rate at which we continue to grow and evolve. Then comes the most important job of marketing of these products. And this is the logo of Amul. You look at any Fortune 500 company, the word marketing is never there in any of their names. We are lucky and fortunate that in the name of our organization, the word marketing has come in. So Gujarat Cooperative Milk Marketing Federation. And this is our logo. It looks like a flower. But if you look at it closely, there are six people joining hands. So Amul started in 1946. We were formed in the year 1973 when this cooperative model got replicated in six districts of Gujarat. Kaira, Masana, Sabar, Banas, Maroda, Surat. The farmers set up these cooperatives and started working together. But then when they went to the market to sell their products, they were again at the mercy of the traders who used to make them complete with each other and dictate the prices. So Dr. Kurian came up with this idea of setting up a marketing federation whose single job will be to market the products which are manufactured by these cooperatives. And that's how we came into being. And today we are 18 district unions who are members of the state federation, who are owners of the state federation, and owners of the brand Amul with a turnover of more than $8 billion. And ever since then, we have been a focus of a strong brand, focus on the consumer, focus on consumer packs, and affordable pricing. Now these are the very, very strong, simple words which are using here. But they are very strong pillars on which the entire organization is built. We don't sell any milk in loose form. So all milk has to be essentially packaged. No milk sold in tankers or bulk quantities to anyone. So this is where the milk volume goes increasing. But still we say if you have a strong brand and focus on the consumer with small packs and affordable pricing, we'll be able to build the market to any level that we want to. This is what is the core difference between this. Anybody who buys a toothpaste in a month or twice a month or soap or something is called FMCG. We are very, very fast-moving goods. Because you buy milk every day as a customer. We as sellers of milk sell it twice a day. So this is where it's there, and it's a huge market worth 7 to 8 lakh crore rupees. This is another thing which they never teach at Harvard Business School, OK? A private company will buy the raw material at the lowest price, sell the finished food at the highest possible price, and keeps the maximum profit for its owners or the shareholders. We do exactly the opposite. We buy the raw material which is milk at the highest possible price because we are buying it from our owners, the farmers. And Amul as a brand is a value for money brand. We give the best quality products, but not at the highest price. So we have to work with very low margins, very low costs, very low overheads, very low expenses to see that we are able to keep both sides of the business happy, the producer on one side and consumer on the other side. We have a mandate to grow the market because unless the market grows, the producer will not be able to create a market for all the products that he makes. And we know that for a fact in India, that even after so many years of selling butter, only 15 to 20% of Indians consume butter, 80% of the market is left unexplored. Package milk also is bought by hardly 50% to 60% of the total consumers of the country. So the market opportunity is very large. And to grow that, we have to see that we are able to keep both sides of the spectrum happy, the producer and the consumer. And that can happen only when the consumer blindly trusts your product. And he or she will trust your product only if you don't compromise on the quality. Don't change the recipe. Don't change the formulation. Don't be hungry to make more profits by replacing milk fat with vegetable oil in ice cream, which our multinationals are doing. But give the purest quality product to the customer, and that would win his or her trust and confidence in the brand. So this is what we call our supply chain. We call it a distribution highway at frozen minus 20 degrees C, chilled at 0 to 4, ambient at room temperature, and fresh product with just 40 at our shelf life, products moving from milk moving from 3.6 lakh farmers, 18,000 villages, 95 dairy plants to our 80 branch offices, 10,000 distributors and a million retail outlets. No company in India or anywhere in the world has such a complicated supply chain, but working efficiently to see that we operate with very, very low costs, very low margins, and is still able to build the brands and the portfolio products that we are able to sell. And one of the key things to make Amul products available across the country with such a wide range is an Amul parlors, and we have more than 10,000 such parlors and growing. And during COVID, when no other businesses were working, it was Amul parlors and Amul retail and distribution, which actually stood the test of time, the challenge of the situation, and was able to serve the customers around the clock for more than two and a half years consistently. We also India's largest exporter of dairy products and the future growth is also going to come from this particular business model. So this is a vertically integrated farmers cooperative, right from cow to customer, fully integrated with IT and ability. So each member of the supply chain works with only two objectives, either to reduce cost or increase the volumes. And that's how you are able to do billions of transactions with multiple channel partners, all recorded on digitally and digital as well as the technical back end. And we are able to understand what the producer has produced to what the consumer is wanting. And that's how through millions of transactions and a big data, right from database of every single cow that is in the system to every single customer who is transacting with us and multiple tools available.