Sector: Dairy
Founded: 1946
Valuation: $3.3 billion (2024)

Company Overview: Amul, India’s largest dairy cooperative, has been a symbol of successful financial management in the MSME sector, operating in the dairy industry for decades.

Challenges encountered:

• Amul faced challenges in tracking expenses and revenues across its large, decentralized cooperative network of farmers, plants, and distribution channels.
• Rising operational costs and maintaining competitive pricing required stringent financial oversight.

Solutions Implemented:

• Amul implemented a centralized financial management system that consolidated financial data from its various cooperatives and automated the reconciliation process between its plants and distributors.
• They introduced cost control measures, including budget variance analysis and real-time tracking of milk production and transportation costs using digital dashboards.
• Amul also conducted periodic financial audits across its cooperatives to ensure that funds were being allocated efficiently and according to plan.

Outcomes Attained:

• Amul reduced its operational costs by 15%, which enabled it to maintain competitive pricing while increasing farmer payouts.
• The centralized financial system improved transparency and accountability, which attracted more farmers to join the cooperative, further driving their growth.
• Their efficient financial controls became one of the key reasons why Amul has been able to consistently remain profitable and expand globally.