Amul is an emotion in India. It has become synonymous with dairy products. Amul not only did start a white revolution in India but also saved lakhs of farmers from exploitation. It is a brand that managed to get around 60,000 Crores of Revenue. However, the story of Amul's inception is as interesting as its current business. Watch this Exclusive Interview of Amit Vyas, MD-Amul to know more about Amul.
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#Amul #AmulPlant #AmulProducts
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00:00 [Music]
00:23 Whether you need milk for morning tea or coffee or to spread butter on bread for your breakfast.
00:31 We all have only one name in our mind, Amul.
00:34 Amul is a part of our lives from morning to night.
00:39 Amul started with 250 liters and today its capacity is 35 lakh liters.
00:47 Today, we have Amul's MD, Managing Director Mr. Amit Vyas with us to talk about Amul's strategies, history and future plans.
01:03 Sir, welcome.
01:05 Sir, Amul started from two villages.
01:08 Today, so many villages are connected to Amul.
01:14 Before I talk about Amul, I would like to know about your journey.
01:18 How did you start with Amul?
01:21 Namaskar.
01:22 If I talk about myself, I spent my childhood in milk.
01:28 I am still in milk.
01:30 My father is a veterinary doctor.
01:32 He goes to villages at the age of 85 and teaches farmers how to process milk and what to take care of.
01:41 My father is a doctor. He used to work in the National Development Board.
01:46 I spent my childhood in milk.
01:48 Milk is happiness.
01:53 You are at a place where all the happiness is there.
01:56 Amul is in milk.
01:58 Amul is Amul.
02:00 I am an engineer and I did my post-graduation from IRMA.
02:04 I have been working in Amul for 31 years.
02:08 I have been working as a manager from the time I was a deputy engineer.
02:12 I was doing it with the intention of serving the farmers.
02:15 I am still enjoying it.
02:18 God has given me the opportunity to work here.
02:22 What have you learned from this journey?
02:25 I have always learned a lot.
02:27 I don't look down because I want to move forward in life.
02:30 I have always thought good for the farmers.
02:35 I have always thought good for the farmers.
02:38 Dairy farming is more about livelihood than business.
02:43 It is about livelihood.
02:45 The price you pay to the farmer is a source of income for the farmer.
02:49 If you go to the village, you will find that the money you get from milk is useful for the farmer's daily life.
02:56 But at the end of the year, the price difference is the last price you pay.
03:06 The farmer either gets his child married, or he builds a house, or he buys a TV, fridge, or a fertilizer.
03:11 He buys everything he needs.
03:15 He buys a cow from the remaining money.
03:17 This journey is more about the farmer's livelihood.
03:23 India is number one in milk production in the world.
03:27 India fulfills the requirement of milk in the world.
03:36 India's target is to reach the target of 43-45% in the next 25 years.
03:42 Amul Dairy is working on this journey.
03:47 We will be the biggest exporter in the world.
03:50 We are seeing this now.
03:53 We are talking about Amul.
03:55 How do you ensure timely supply and quality of Amul products?
04:03 As a managing director, you have to ensure the quality of Amul products.
04:08 My job as a managing director is to ensure that the quality of Amul products is 100%.
04:15 The quality of the products that are being exported will not be affected.
04:20 Whether you eat butter here, in Delhi, in Jammu and Kashmir, or in the South,
04:24 you will not find any difference in the taste.
04:26 The quality of Amul products has always been the top priority.
04:30 You don't buy Amul because it is a cooperative company.
04:34 You have faith in the quality of Amul products.
04:39 I have faith in Amul products.
04:45 We are working on the quality of Amul products to the best of our ability.
04:51 We want to deliver quality products at an affordable price.
04:54 We have to take care of the consumer and also the farmer.
05:00 This is a different model.
05:03 A farmer buys Amul products at a lower price and sells it at a higher price.
05:09 This is a unique model.
05:12 We buy Amul products at a higher price than the farmers.
05:14 We give value for money to the customer.
05:16 This is how we balance the cost.
05:18 This is beneficial for the customer and the farmer.
05:20 That's why Amul is the taste of India.
05:22 Sir, does the payment system of the farmers transfer directly to the farmers' accounts?
05:29 Or does it go to the cooperative societies at the village and city level?
05:35 Amul started with 246 litres of milk in 1946.
05:41 Today, Amul has a revenue of more than 3 crores.
05:45 The model of trust was based on quality.
05:49 But till date, whether it rains, gets cold, gets hot, or a storm,
05:53 the day the farmer is called, the money is deposited in the farmer's account.
05:59 The money is transferred to the direct farmers.
06:01 It is a different model.
06:03 The cooperative model is at the village level.
06:07 There is a dairy and a cooperative milk marketing federation.
06:09 The consumer distributes the milk to the retailer,
06:17 the distributor gets the milk from the dairy and the farmer gets the payment from the society.
06:23 That is also now digitalized.
06:25 The new model is the cooperative societies outside Gujarat.
06:28 We directly pay the farmers on the 10th day of the month.
06:32 We have more than 2-3 lakh farmers outside Gujarat.
06:37 Their payment is transferred to the account on the day and time.
06:42 This is the result of the trust.
06:47 The second biggest reason is transparency.
06:52 The private milkman gives the farmer the information about the payment.
06:57 Sometimes the farmer gives the child's marriage in advance and then the farmer pays him later.
07:00 In our society, the farmer who has given the fat,
07:05 the money is digitalized.
07:09 The farmer gets the information on his mobile phone.
07:13 He gets to know how much he has transferred to the account.
07:16 This is the quality of transparency.
07:19 This is the trust of the consumer.
07:22 This is why Amul is worth 72,000 crores.
07:24 Sir, you have been associated with Amul for 50 years.
07:29 I would like to know how did Amul get its name?
07:33 The word Amul means Amul.
07:37 Amul means Anand Milk Union Limited.
07:41 That is why the word Amul was created.
07:43 It is priceless.
07:45 It is named Kera District Cooperative Milk Producers Union Amul Dairy.
07:50 The brand Amul was created in 1946.
07:56 In 1973, it became the Gujarat Cooperative Milk Marketing Federation.
08:00 When the small district cooperatives started fighting among themselves,
08:03 they were standing to destroy the private sector.
08:07 Dr. Koryan and Tibhon Bhai Patel, the leaders,
08:12 thought that they should keep their brand united so that there is no competition.
08:17 The private sector could take it away from someone for a cheaper price.
08:20 Amul's brand is common because of this.
08:23 The brand of Kera District, Amul GCMF, is used for the benefit of the farmers.
08:29 We are serving the world in more than 50 countries.
08:35 The brand will be common and will be in everyone's mind.
08:38 That is why the brand became so strong.
08:40 This is a strategy to sell all the products with the same brand.
08:44 How do you see Dr. Koryan's contribution?
08:47 Do you have any memories with Dr. Koryan that you will remember for the rest of your life?
08:53 I have seen Dr. Koryan since my childhood.
08:55 When I was a kid, my father used to work in NDDV.
08:59 I have seen him since my childhood.
09:00 You saw Amul's campus.
09:02 You did not see any waste anywhere in Amul's campus.
09:04 We have seen him since our childhood.
09:06 Dr. Koryan used to say that if your toilets are clean in the organization,
09:12 then your organization is clean.
09:13 If your toilets are not clean, then the organization is dirty.
09:17 If you see today, you will go to NDDV,
09:20 you will go to Amul, you will go to the federation, you will go to our system.
09:24 Even today, the same standard is maintained.
09:27 Because we have seen him since our childhood.
09:29 The second thing is the discipline of Dr. Koryan.
09:31 When we were kids, he used to put a board there.
09:34 Like this grass, he used to put a board on it.
09:36 Do not cross the lawn.
09:38 Yes, I was still seeing this.
09:39 It is written everywhere on the boards.
09:41 Even today, I have seen it.
09:43 Since childhood, we used to see that if Koryan uncle sees it, he will get scolded.
09:46 That is why we could not cross even then.
09:48 Even today, even after 54 years, if you tell me to cross the lawn, I will not cross the lawn.
09:53 Because the values, their systems, their culture,
09:56 the systems that are made and implemented,
10:02 we have maintained them even today.
10:04 And now we have come to the level that all the plants in India,
10:09 when and how many times have the toilets been cleaned,
10:12 and which man has done it, which system is displayed.
10:15 So that is the technology.
10:18 We have always brought technology with time.
10:21 And today, Anand has said that when we are talking about the digitalization of the whole of India,
10:27 our Honorable Prime Minister is talking about digitalization.
10:30 So the Kera plant of Amul, where you are,
10:33 where Amul started, its turnover is 12,000 crores today.
10:36 And we handle 47 plants from here.
10:39 In that, you will not see a paper anywhere in the whole plant.
10:41 And if you see, in these 47 plants, we had 170 printers here, we have removed them.
10:48 And it is a complete digital platform.
10:51 Everything, even people used to say how will the farmer use it?
10:54 So our farmer also uses the application.
10:56 Earlier, he used to do call center.
10:58 We have shifted it from call center.
11:00 As you know, call centers run 24 hours in Delhi and Gurgaon.
11:02 We said that call center is not the solution.
11:05 We have to learn to use the application.
11:07 And today we do everything through the application.
11:10 What was your relationship with Dr. Koryan?
11:13 My father used to work, we were young.
11:15 We have seen him since childhood.
11:17 We used to call him Koryan uncle.
11:19 And we still remember him.
11:21 And his daughter is also with us today.
11:24 Whenever she comes, we remember her and meet her.
11:27 And Dr. Koryan was a professional.
11:31 If you look carefully, and Tribhuvanbhai Patel was a leader.
11:36 His leadership and professionalism was a thing.
11:41 Today, we have a chairman, Vipulbhai Patel.
11:44 I am a professional.
11:46 Today, we are working together.
11:48 In the rest of the team, there are doctors, engineers, technologists, food technologists.
11:53 So they are all working together.
11:56 And the aim is the same.
11:58 How to give more money to the farmers.
12:00 How to increase the productivity.
12:02 And how to reach the best product to the consumer.
12:06 And how to reach in a low cost, so that the expenses are less.
12:09 You may not know, but in the world,
12:12 If you earn 1 dollar or 1 rupee in India,
12:17 In the world, you earn 1 dollar,
12:19 33 cents goes only to the farmer.
12:21 33 cents goes to the processor.
12:24 And 33 cents goes to the retailer.
12:28 Like Walmart, Tesco, Imcarry, etc.
12:31 In India, our cooperative model,
12:34 1 rupee earned, 85 to 87 paisa goes back to the farmer.
12:39 Now, in that, 13 paisa goes to power, fuel, water, labor, maintenance, R&D,
12:43 transport, inward transport, new development, projects.
12:47 All these expenses are taken out in 13 paisa.
12:50 So, your entire value chain, right from the animal,
12:55 Because the milk is coming from there.
12:57 And you are a consumer, I am a consumer,
12:59 So, the milk that you are taking from the shelf,
13:01 The entire chain is digitalized.
13:03 Like you know, you have worn a Fitbit,
13:05 You don't know, you will fall sick after 2 days.
13:07 We will tell you on our dashboard,
13:09 That this animal will fall sick after 2 days.
13:11 That is the technology that we have derived.
13:14 And if the consumer comes,
13:15 You are in this shelf, in this village, in this place,
13:17 You pick it up, we will know,
13:19 From this shop, this product is more off-take.
13:22 If we scan the QR code there,
13:24 What does the retailer sell,
13:26 How much does he sell, and what does he not sell.
13:28 What is the pattern of that area, that also we know.
13:30 And that is why we have been able to reach to the consumer,
13:33 With the right product at the right time.
13:35 You were saying that 80% of the money goes back to the farmers.
13:39 I would like to understand this,
13:41 Because our business is our portfolio,
13:43 We are talking about business.
13:45 So, what is Amul's business model?
13:47 How Amul makes money?
13:49 See, Amul never makes money, first thing.
13:51 Because it is a cooperative.
13:53 So, whatever you are earning from a consumer,
13:56 That has to go to the farmer.
13:58 If you see, in our turnover of 12,000 crores,
14:01 You will see a profit of 40-50 crores.
14:03 The rest is the money of the farmer.
14:05 So, all the money is going to the farmer.
14:07 So, whatever the consumer has given you,
14:09 But the consumer should get value for money.
14:11 We don't have to do high price with the consumer.
14:13 India is a mass market.
14:14 You see, how many multinationals have come here.
14:16 They have not been able to succeed,
14:18 They could not fight with us.
14:19 Because our pricing is such that,
14:21 The consumer is getting value for money,
14:23 And the farmer is getting more money than.
14:25 The work that is going on now,
14:27 Basically, the model that we have,
14:29 We have said that in the next 25 years,
14:31 We have to reach 625 million metric tons.
14:33 So, how to increase per animal milk?
14:36 So that the farmer's expenses are reduced.
14:38 When the farmer's expenses are reduced,
14:40 Only then your milk production will increase.
14:42 So, if the expenses are reduced,
14:43 The money that will come from the consumer,
14:45 The farmer will be able to save more money.
14:47 This combination works.
14:48 Amul's aim is never to earn money.
14:51 Never has been, never will be.
14:53 The aim is to ensure that the farmer gets more money.
14:56 If you see, whenever the price of milk increases,
14:58 The price of other products also increases.
15:00 And it does not have much impact.
15:01 But the price of milk has a big impact.
15:03 But you have to understand that,
15:05 The price increases when the fodder,
15:08 Which is being fed to the cow,
15:10 The cost of that increases.
15:11 When our input cost increases.
15:12 Or the cost of getting power fuel increases.
15:15 Because sometimes the price of diesel increases.
15:18 So, the input cost increases.
15:19 So, we take the same cost from the consumer.
15:21 And the rest of the cost,
15:22 The cost of the farmer,
15:23 The cost that increases,
15:24 We give it back.
15:25 So, in the input,
15:26 If you, as a consumer,
15:28 If we get more than one rupee,
15:30 Then almost 85-87% of it goes to the farmer.
15:33 It goes to the farmer.
15:34 Because its cost is not sustainable.
15:36 And we have to make it sustainable.
15:38 Only then we can take our country forward.
15:41 And with this aim,
15:42 Amul was also started.
15:44 If we look at it from the international manufacturing standard,
15:47 Then what do you think,
15:49 How much have we achieved?
15:51 We are talking about Amul.
15:52 How much have we achieved?
15:53 And where are we lacking?
15:55 Look, if you,
15:57 Maybe you don't know,
15:58 If you visit Amul plant today,
16:00 We are having world best technology.
16:02 Available with us.
16:03 And it is not that,
16:05 Earlier we used to import the technology.
16:07 Today we are indigenizing the technology.
16:09 Secondly, if you see Amul chocolate plant,
16:12 We were only 1% of the market share.
16:14 We were in milk, not in chocolate.
16:16 Today we are number 1 in chocolate and dark chocolate.
16:18 And now we are coming up in milk chocolate in a big way.
16:22 So if you see,
16:24 We have been having the plant which is world class facility.
16:27 In fact, many of our competitors have visited and said that,
16:30 Our plant is better than their plant.
16:32 So we have reached that level,
16:34 Where we can crack the technology.
16:38 Now you know about indigenous sweets,
16:40 Rasgulla, Gulab jamun, Ped.
16:42 Their technology through machines is getting better.
16:46 And we are moving in a big way,
16:48 In standardizing the design.
16:51 And if you see our sweet plants,
16:53 It will look like you have come to a pharma grade plant.
16:56 To that level we have reached to the technology.
16:58 Secondly, we have done a lot of automation.
17:01 And you know India is a hub in IT.
17:03 So we say that,
17:04 Why should we bring technology from abroad?
17:06 We should have our indigenous software.
17:08 We should have indigenous technology.
17:10 So if you see,
17:12 As I told you,
17:13 If you see our dashboard,
17:14 You can see anything.
17:16 You need not to call anyone.
17:18 Which none of the countries have that kind of dashboard.
17:21 In which the farmer knows,
17:24 If the animal is going to fall sick,
17:26 Where is your manpower working?
17:28 For how long is it working?
17:30 Where is your worker working?
17:32 On which machine is it working?
17:34 What time is the distributor,
17:36 What has he taken from where?
17:37 If that information is available with artificial intelligence,
17:40 In fact we are working on a technology where we can predict,
17:43 Because we know the diseases,
17:44 What diseases are happening to the animal.
17:46 We know what is the ambient temperature,
17:48 What is the humidity,
17:49 What is the milk procurement.
17:51 We know what kind of fodder cost is happening.
17:55 Where is the fodder being brought from?
17:57 In how much is it being brought?
17:59 We are working on an artificial intelligence model,
18:01 Where we will say,
18:02 How much milk will be brought in this year?
18:05 We have reached to that level.
18:07 In terms of technology,
18:08 Nobody can beat the country in the entire world.
18:11 Sir, Amul started with milk,
18:14 And today Amul is present in almost every spectrum.
18:18 What is the next bigger plan of Amul?
18:20 If you see,
18:22 If we talk about the change of consumer pattern,
18:25 India needs health supplementation.
18:28 People are getting diabetes.
18:30 Apart from diabetes, hypertension is one of the biggest.
18:34 People are getting old,
18:37 They have protein deficiency.
18:39 So the future is sugar free protein.
18:42 We have entered into protein cookies,
18:46 We have protein lassi,
18:47 Protein buttermilk,
18:48 Protein water,
18:49 Protein ice cream,
18:50 We are coming with protein ice cream,
18:51 With sugar free.
18:53 So that is the future that we are looking at.
18:55 That is an area where the target segment of the country is moving.
18:59 And that is again from the milk base.
19:00 It is not from the,
19:01 You know, everyone else says oat milk.
19:04 Oat is not milk.
19:05 Almond is not milk.
19:06 It is a very different thing.
19:07 So milk is milk.
19:08 We have cheese from that.
19:10 So how can we move forward from cheese?
19:12 Second segment which is growing in a big way is organic.
19:16 Government of India has put a lot of efforts.
19:18 Because of pesticides,
19:20 Highest cancer patients in the world.
19:23 If you see,
19:24 Because what we eat ultimately,
19:25 That is getting into our body,
19:26 And many diseases are happening.
19:29 So Amul has entered into organic.
19:30 So we entered into organic fertilizer.
19:32 So we are now making our farms more organic.
19:34 We are saying that,
19:36 Amul has got a software which is called Amul iKesan.
19:39 Wherein farmer can use the application saying that,
19:41 I want to put up my organic fertilizer.
19:44 So he uses it,
19:45 We get the information,
19:46 The person takes the drone,
19:47 He takes and sprinklers it over the field.
19:49 And he would come to know in this field what he is growing.
19:53 What is he growing?
19:54 And how much quantity he will get in front of him,
19:56 How much money he will get.
19:57 We know that.
19:58 He also knows that.
19:59 And we will sprinkle it over the field.
20:01 And we have tied up with ISRO,
20:03 With satellite we are monitoring the field.
20:05 So we know that,
20:06 In which area,
20:07 At which place,
20:08 Which farmer is growing what on the slat lawn.
20:10 And what is his growth.
20:12 And similarly we need fodder for the animal.
20:14 We are doing all the mapping in the whole district.
20:17 So every land is mapped by the farmer.
20:19 And we have to give him seed at subsidized rate.
20:22 So the one who will grow,
20:23 We will get to know.
20:24 So we will be able to do the prediction of the milk.
20:26 We will be able to do the prediction of the crop.
20:28 We will be able to do the prediction of the crop.
20:29 The government is concerned about the MSP price.
20:32 So you will come to know over a period of time,
20:34 What is going to grow in this area?
20:35 And what product is going to come?
20:36 How much volume is there?
20:37 Then you can put that product.
20:39 And what can be the value addition in that?
20:41 And then you can get more to that.
20:43 If you see,
20:44 Why milk has increased?
20:45 Why dairy cooperatives have increased?
20:46 Because it was not about milk.
20:48 It was value addition of milk into milk products.
20:51 Like buttermilk, ghee, paneer, curd, ice cream.
20:54 All these were value addition.
20:55 So in the coming days if you are a tomato,
20:57 You see we have entered into ketchup now.
20:59 We have entered into ketchup.
21:00 Everyone is thinking why did we enter into ketchup?
21:02 We have not entered into ketchup because,
21:03 Ultimate aim is to,
21:05 The tomatoes in the back end,
21:07 The ones that grow,
21:08 How can we give more value to those?
21:11 We have entered into potato fries.
21:13 We have not come just like that.
21:14 We have formed potato cooperatives in the back end,
21:16 And we are working in that.
21:18 We are also entering into various ready to eat foods.
21:22 Ready to eat good but they are healthy foods.
21:24 We have entered into oil.
21:25 If we can do it in oil,
21:27 How can we give best price to the farmer?
21:29 We will use the waste from the farmer in cattle feed.
21:31 Animal health will be better.
21:32 That is why what we are doing is a backward integration.
21:35 Ultimately that is our focus.
21:38 Sir I am sure you have seen the transition of machines from the beginning.
21:43 You must have seen it with your own eyes.
21:44 Now everything has become so advanced and digitalized.
21:48 I would like to know that in the initial stage,
21:50 How did the whole process used to happen?
21:52 How did the milk process used to happen?
21:54 How did the machines used to be?
21:56 How did the transition happen?
21:58 I have seen it since my childhood.
22:00 I am an engineer.
22:02 I have operated the machines with my own hands.
22:04 Whether you ask me to make butter,
22:06 Or powder, or refrigeration, boiler, water,
22:08 I can operate everything.
22:10 I have done it all by myself.
22:12 Let's take a simple example of butter.
22:14 How was butter made in our house?
22:16 Milk was taken,
22:18 It was made by blending.
22:20 It was taken with fat,
22:22 Or it was made with ghee.
22:24 The technology that started from there,
22:26 Then drum churns came.
22:28 It started in wooden churns.
22:30 But it was not hygienic.
22:32 Stainless steel came.
22:34 Churns started rotating in stainless steel.
22:36 That technology was used to know that when there is an impact,
22:38 It should be very heavy.
22:40 Then horizontal churns came.
22:42 After horizontal churns, continuous churns came.
22:44 After continuous churns, salt addition, color addition,
22:46 Fat came out, butter milk came out separately.
22:48 It went ahead.
22:50 From butter to technology,
22:52 It has become that milk comes out of cow's udder.
22:54 Without touching it,
22:56 You eat butter, ice cream,
22:58 Milk, curd,
23:00 No one touches it.
23:02 That is where the transformation of technology is all about.
23:04 That is why the quality is on the prime aspect.
23:06 Once the milk comes out from the udder,
23:08 The next step is you get the product at your home.
23:10 Sir, Amul milk is consumed in India.
23:12 But what does Amul's MD like?
23:14 Amul milk?
23:16 Amul milk.
23:18 It is in our DNA.
23:20 Amul, I eat Amul's curd,
23:22 I eat Amul's ice cream,
23:24 I eat Amul's chocolate.
23:26 It was a little while ago that I was talking about it.
23:28 I got married 27-28 years ago.
23:30 My wife was just sharing.
23:32 She was saying that when we got married, she used to eat Cadbury.
23:34 At that time, when I had chocolate,
23:36 I changed it.
23:38 I said that I should eat Amul's.
23:40 It is in our blood.
23:42 I have seen it since childhood.
23:44 Like I said, my father is a veterinary doctor.
23:46 I am an engineer in the dairy sector.
23:48 Dr. Korean used to say that
23:50 girls were not dairy technologists at any time.
23:52 In the 80s,
23:54 my sister got admission in engineering.
23:56 Dr. Korean suggested
23:58 my father that why she should not become a dairy technologist.
24:00 Why only boys
24:02 go to dairy technology.
24:04 She was a dairy technologist
24:06 as a girl in 1985.
24:08 So, she became a veterinarian.
24:10 So, a doctor, a veterinary doctor,
24:12 an engineer, a dairy technologist.
24:14 That is still in the blood.
24:16 What is your favorite product?
24:18 If we talk about Amul's products.
24:20 You cannot say that all are best.
24:22 All are good.
24:24 Amul is the best.
24:26 There is no other product.
24:28 You cannot compare it.
24:30 Sir, the company has 1.2%
24:32 in the milk production in the world.
24:34 As you said,
24:36 if we look at the world,
24:38 India is the largest
24:40 milk producer country.
24:42 What is Amul's response in the international market?
24:44 And which country is the
24:46 one that welcomes Amul with open heart
24:48 after India?
24:50 First of all,
24:52 when do you go for export?
24:54 First, when the home conversion is over,
24:56 then you go abroad.
24:58 Second, if you see,
25:00 our product is indigenous.
25:02 If you see,
25:04 Japan is becoming a big buyer of ghee.
25:06 If you go to
25:08 Singapore, Malaysia, Thailand,
25:10 US,
25:12 the taste of Indian community is the same.
25:14 The first segment
25:16 defines you
25:18 in your area.
25:20 Today, we are exporting in 50 countries.
25:22 Isn't it?
25:24 We have a small plant in US.
25:26 Next target is to set up another plant in US
25:28 where we can make butter, ghee,
25:30 shrikhand.
25:32 The technology of making ghee is not in US.
25:34 The world does not eat ghee.
25:36 We have the technology.
25:38 Paneer is a different product.
25:40 It is called worldwide cottage cheese.
25:42 But it is different.
25:44 You have to make that product
25:46 in that country and give it your taste.
25:48 Then you need to develop.
25:50 First thing is to capture our market.
25:52 Then we enter into the other's market.
25:54 That is what the new
25:56 thinking is all about.
25:58 If you see,
26:00 Dubai is a big buyer of us.
26:02 Singapore is the biggest buyer.
26:04 Chocolates are now in US.
26:06 We have our products in every country.
26:08 Everybody is accepting it.
26:10 That is why they are importing.
26:12 Recently,
26:14 US based agency said
26:16 Amul is the strongest brand
26:18 in dairy products.
26:20 Sir, I will talk about
26:22 the controversy.
26:24 First, Amul vs Nandini happened in Karnataka.
26:26 Then, Amul vs Avin happened
26:28 in Tamil Nadu.
26:30 How does Amul see this controversy?
26:32 I would not like to go into
26:34 all those details.
26:36 But, there are cooperatives.
26:38 Please understand,
26:40 Amul is a cooperative.
26:42 Amul is the district cooperative.
26:44 Gujarat Cattle Milk Marketing
26:46 Federation is branded Amul.
26:48 Nandini is the name of Karnataka Milk
26:50 Federation. Avin is Tamil Nadu.
26:52 These are all cooperatives.
26:54 The important thing is
26:56 why should there be competition?
26:58 If there is competition,
27:00 you improve.
27:02 How can you give more
27:04 price to the farmer?
27:06 The one who gives good price
27:08 will get the benefit.
27:10 Nandini had cheese plant.
27:12 She had extra cheese surplus.
27:14 We still pack ice cream in Pondicherry.
27:16 It is a win-win situation.
27:18 Ultimately,
27:20 it is a cooperative.
27:22 If there is loss, it will not be private.
27:24 It will be the loss of the farmer.
27:26 We all have to work together.
27:28 The government of India
27:30 has made Amul a cooperative.
27:32 The government of India has made
27:34 Amul a cooperative.
27:36 Why?
27:38 Because this model
27:40 has power to take.
27:42 If Amul is worth 72,000 crores,
27:44 and in the coming days,
27:46 we will do 1 lakh crores in 2-3 years,
27:48 then we will do it.
27:50 If you see,
27:52 Amul Kera plant was worth 6,000 crores
27:54 4 years ago.
27:56 Today, we are worth 12,000 crores.
27:58 It is possible.
28:00 Finally, the farmer is getting fulfillment.
28:02 That is the main target.
28:04 Does Amul consider anyone as its competitor?
28:06 It is good.
28:08 Everybody should be a competitor.
28:10 You should never take competitors lightly.
28:12 You should perform well in your segment.
28:14 Let their standard improve.
28:16 If someone looks better than us,
28:18 if you feel that somebody is better than you,
28:20 because ultimately,
28:22 what is Amul in India?
28:24 It is the taste of India.
28:26 The taste of your taste,
28:28 the taste of your family,
28:30 that is the taste of India.
28:32 What is there in it?
28:34 If you go to a foreign company,
28:36 you will get a product,
28:38 you will taste it for generations.
28:40 That is why Amul is the taste of India.
28:42 What are the challenges of the dairy industry?
28:44 Are there any challenges
28:46 that you have to face
28:48 after COVID?
28:50 We have worked the most in COVID.
28:52 The challenge is that
28:54 it is going to happen.
28:56 We are into business.
28:58 There are pluses and minuses in every business.
29:00 Sometimes it is high, sometimes it is low.
29:02 Sometimes it is milk procurement,
29:04 sometimes it is broad,
29:06 sometimes it is over range.
29:08 The biggest challenge this year,
29:10 if we talk about this year,
29:12 is that there was no summer.
29:14 If there was no summer,
29:16 I was talking to one person today,
29:18 very interesting analysis,
29:20 I was talking to him that
29:22 there was no impact.
29:24 But very interesting fact which I came to know today,
29:26 he was into a retail business of air conditioning.
29:28 He told me that
29:30 our 15% sale of air conditioning is less.
29:32 Which implies that
29:34 because there was no summer,
29:36 we also had the same impact.
29:38 So environment plays a challenge.
29:40 Global warming is a challenge.
29:42 Sustainability is a challenge.
29:44 We have to work for it.
29:46 Amul is striving and working
29:48 very hard for that.
29:50 We have done water harvesting.
29:52 We are putting up biogas plants to reduce methane content.
29:54 We are coming up with solar systems
29:56 on the top of our panels.
29:58 And maybe next,
30:00 like our Prime Minister has
30:02 committed in 2070,
30:04 we will be carbon neutral.
30:06 We want by 2030,
30:08 the dairy sector should become,
30:10 independent sector should be sustainable.
30:12 We should be,
30:14 you know,
30:16 we should have surplus credits.
30:18 Sir,
30:20 if we look at India's business,
30:22 which sector do you consider
30:24 to be the most profitable?
30:26 In terms of?
30:28 If we look at startups,
30:30 what do you think?
30:32 IT sector is growing.
30:34 IT sector is still growing
30:36 because there are many startups.
30:38 Secondly,
30:40 the IOT based systems in the industry,
30:42 for example,
30:44 like Fitbit,
30:46 we have a startup for animal fitbit.
30:48 For cow,
30:50 we have entered into poultry feed.
30:52 We thought why not make a belt for poultry feed.
30:54 We thought,
30:56 we have entered into homopathy.
30:58 Antibiotics,
31:00 like the antibiotics that come in milk,
31:02 are going into your body.
31:04 You are becoming antibiotic resistant.
31:06 So we started homopathy for animal treatment.
31:08 This year, we are treating 1 lakh animals
31:10 with homopathy.
31:12 So these startups,
31:14 if you start thinking,
31:16 the IOT based systems,
31:18 if we make a belt,
31:20 there will be development.
31:22 If we talk about plant side,
31:24 we have busbars in IOT based systems.
31:26 We have sensors in our busbars
31:28 which will tell us if it is hot,
31:30 it will trip us.
31:32 If you see,
31:34 the highest startup segment is being created in the country.
31:36 And,
31:38 which is a very good sign
31:40 because there are innovations happening in it.
31:42 Innovations are happening in every segment.
31:44 We are coming up with packing material,
31:46 how to reduce plastic,
31:48 how to use paper more.
31:50 Innovations are happening in that.
31:52 Innovations are happening in our processes.
31:54 So if you see, startups in the country
31:56 are mushrooming.
31:58 And very honestly, my son himself,
32:00 he is studying in 3rd year of design.
32:02 He has put up his own exhibition of Srinathji.
32:04 Sri Sringar by Srinathji.
32:06 It's a startup for him.
32:08 And he is in that devotion,
32:10 he is doing it in that devotion.
32:12 So, in every field,
32:14 there is an opportunity to move ahead.
32:16 And, the number of startups India will work in,
32:18 we see, in the cement segment,
32:20 if you see, how much development is happening.
32:22 How limestone can be avoided
32:24 and some waste can be used,
32:26 converted into cement.
32:28 If you see in organic fertilizer,
32:30 how can organic fertilizer be made properly,
32:32 so that the soil porosity will be good,
32:34 water percolation will be more inside,
32:36 table of water will come up,
32:38 and the crop that is being done,
32:40 that is pesticide free.
32:42 So if you see, agriculture is
32:44 the next generation.
32:46 If you see, in technology,
32:48 if we talk about AI,
32:50 the most development that is happening
32:52 is in agriculture, AI development.
32:54 If you see,
32:56 how many articles you read,
32:58 how digitalization, how automation
33:00 can be utilized in agriculture field.
33:02 That is what is the next step that is happening.
33:04 Do you consider artificial intelligence
33:06 as a threat? Not at all.
33:08 See, how you have to use it,
33:10 a person should not be afraid,
33:12 what is your utility,
33:14 if there is a threat in everything,
33:16 there is no threat of your life,
33:18 you do not consider it as a threat
33:20 that you fell from here,
33:22 you do not consider it as a threat for jobs?
33:24 No. Technology,
33:26 both are happening,
33:28 artificial intelligence is developing,
33:30 startups are also becoming number one.
33:32 When there were no startups,
33:34 AI came, so startups also came.
33:36 So, both are standing parallel.
33:38 Earth is the rule of
33:40 change of the world.
33:42 If there is no change,
33:44 then you say,
33:46 what is going on is a shop,
33:48 rest is a warehouse.
33:50 So, you have to keep your brain running,
33:52 otherwise, whenever a warehouse is created in a person's mind,
33:54 then only garbage will be collected,
33:56 negative thoughts will come,
33:58 then it will go in the negative direction.
34:00 So, our aim should be to use any technology
34:02 and we always believe that
34:04 there should always be competition,
34:06 there should be new developments,
34:08 something new should come, then only you do something new.
34:10 Why did your iPhone reach 13, 14, 15?
34:12 Why did your Fitbits change,
34:14 dials started getting bigger, some started getting smaller,
34:16 heartbeat came, you started seeing colors in it.
34:18 We are doing such a treatment for animals
34:20 that take their blood, make a spear there
34:22 and put it under the microscope mobile
34:24 and treat the disease there.
34:26 We are working on that, we have given.
34:28 If you are a human,
34:30 if you know whether your wife is pregnant or not,
34:32 then you have to put a drop of urine in the morning
34:34 when you come to know.
34:36 We are making such strips for farmers
34:38 that the cow which is pregnant or not,
34:40 can find out from a drop.
34:42 So, we are working either drop of milk or drop of urine.
34:44 So, technology is changing.
34:46 We have to adapt to technology,
34:48 we have to think
34:50 what other new developments can be done
34:52 which can reduce our costs,
34:54 farmer's costs and reduce the country's expenses.
34:56 If you see that if I save these strips,
34:58 then my number of time doctors are going less,
35:00 my transportation costs,
35:02 environment, CO2, diesel,
35:04 you see the multiply effect.
35:06 Now when it goes,
35:08 its prescription, paper,
35:10 carbon, carbon means book,
35:12 copy means to keep it back,
35:14 to store it, to scrap it,
35:16 that much requisition.
35:18 Simple, you must have never done analysis.
35:20 You bring a paper in the organization,
35:22 you know how many items you buy,
35:24 you have never done analysis, I will tell you.
35:26 How many items you purchase when you buy one paper in the organization.
35:28 Pen, pencil, rubber,
35:30 punch, big punch, big small,
35:32 big file, small file,
35:34 ink, marker, punch,
35:36 box of garbage, printer,
35:38 printer means its ink,
35:40 cabling, band, wiring, switch, board,
35:42 box of garbage means sweeper,
35:44 sweeper means its trolley,
35:46 trolley means scrap go down,
35:48 gate pass, gate pass entry,
35:50 you have to buy only this much.
35:52 You have to pay only this much.
35:54 How much time, how much energy,
35:56 how much money. So with Amul,
35:58 purchase, acquisition to purchase
36:00 order is 4.55 days.
36:02 In this less time, we have to manage the whole system
36:04 and with no paper in that.
36:06 So how you can bring down the cost,
36:08 that's the key, then only organization
36:10 will grow, then only country will grow,
36:12 then only sustainability will happen.
36:14 Right, right. Sir, we are talking about startups,
36:16 what do you think, why does any startup
36:18 fail? What would be the biggest reason
36:20 for a startup to fail?
36:22 See, startup, I don't believe
36:24 that anything fails.
36:26 Somewhere,
36:28 our understanding
36:30 is lacking.
36:32 What we want is
36:34 the input we got,
36:36 on which we want to design something,
36:38 that input is wrong. Right.
36:40 Now understand, if I want to make
36:42 this thing and my focus
36:44 is only this and its
36:46 raw material cost is too much and
36:48 I don't see any other option, then I
36:50 take that product and competitor
36:52 sells it to me cheaply, I say I failed.
36:54 You didn't fail.
36:56 The thought you had,
36:58 somewhere in that thought, it was lacking in input.
37:00 I always say to startups,
37:02 I give input with many startups,
37:04 I give lectures, I go to college,
37:06 I give lectures in IIM, I give in IRMA.
37:08 I say this thing that
37:10 whatever work you want to do, research
37:12 in the sense of, study in detail.
37:14 Right. And always
37:16 keep your raw material sourcing
37:18 multiple and
37:20 keep its cost low.
37:22 And then you come up with a
37:24 product and then you
37:26 see that what consumer
37:28 want, not that what you want to give
37:30 the consumer. And the need of the consumer,
37:32 if you have understood it right,
37:34 then you have been successful.
37:36 Otherwise you need improvement,
37:38 you are not failure, you need improvement.
37:40 Because failure is not a thing in life.
37:42 You always need to improvise
37:44 on whatever is happening and it's a learning.
37:46 If you change in one thing,
37:48 if you feel that you didn't succeed here,
37:50 then you made a mistake here.
37:52 And what God makes you do, he does it for good.
37:54 I believe in that. If you have made a mistake,
37:56 then you don't have to make a mistake, you have to do it like this.
37:58 Right. That is what
38:00 the new generation has to learn,
38:02 the startups have to learn. They have to be positive.
38:04 No doubt,
38:06 many industries, venture capitalists
38:08 hold someone's hand, hold someone's nape.
38:10 It is again depend on the market.
38:12 You have made such a product,
38:14 many times some products become innovative,
38:16 which are before time.
38:18 Some are with time,
38:20 some are after time.
38:22 So, every field has different requirements.
38:24 So, you don't know where you have to go,
38:26 you should know,
38:28 your research should be good,
38:30 and you work hard on it,
38:32 you will get success.
38:34 There is no success without hard work,
38:36 you have to make efforts. What do you consider as life mantra?
38:38 Hard work,
38:40 commitment,
38:42 meditation,
38:44 and a good mind.
38:46 Let me tell you, if your mind is not good,
38:48 then you cannot earn much in life.
38:50 Where your mind is good,
38:52 your feelings are good,
38:54 success will come automatically.
38:56 You don't have to tell anyone,
38:58 you don't have to ask anyone,
39:00 your mind is good. The God you believe in,
39:02 whatever God you believe, trust him,
39:04 he is giving you the right direction.
39:06 And as it is said in our Hindu mythology,
39:08 gravitational force pulls you down,
39:10 what lives in the hell?
39:12 Devils.
39:14 You have to connect with the Divine,
39:16 so when you want to connect to the Divine,
39:18 you need to be at that level.
39:20 You have to come up, not down.
39:22 People will keep on talking,
39:24 some people will say,
39:26 it is the job of people,
39:28 and we will go with their words.
39:30 So, the mantra is, don't board the train of thoughts.
39:32 Don't ever sit in the train of thoughts.
39:34 You have a thought, you sit in that train,
39:36 next station, another thought, you sit in that,
39:38 then in the third, you say, I have a migraine.
39:40 So, don't board the train of thoughts,
39:42 is the first mantra.
39:44 Second mantra is to let go of the things,
39:46 and the third mantra is,
39:48 thank God for whatever you have been given.
39:50 I will thank you, I will thank them,
39:52 but try to thank your body part,
39:54 they are with you.
39:56 Your eyes, your ears, your body,
39:58 your body is with you.
40:00 Your family is breathing,
40:02 thank God.
40:04 These are the two or three mantras,
40:06 you have to control.
40:08 Sir, if you want to give a message to start-ups,
40:10 what message would you like to give?
40:12 I will say one thing,
40:14 work very hard,
40:16 and with dedication,
40:18 but intelligently.
40:20 What exactly you want,
40:22 work according to that.
40:24 Without Harvard, there is no solution,
40:26 there is no shortcut,
40:28 it will never happen.
40:30 Secondly, when you succeed,
40:32 don't drown in fame.
40:34 Learn to digest the fame,
40:36 that is the biggest challenge.
40:38 When a person gets money,
40:40 he gets angry.
40:42 Don't drown in that.
40:44 Try to help others,
40:46 when you are successful,
40:48 always try to help others.
40:50 When you multiply others,
40:52 then only the country will grow,
40:54 and we can be number one in the world.
40:56 Thank you so much, sir.
40:58 Thank you for giving us your valuable time.