“From Anand to Andalusia: Amul’s Cooperative Globalization through Strategic Joint Ventures toward Vision 2030”

 Title

“From Anand to Andalusia: Amul’s Cooperative Globalization through Strategic Joint Ventures toward Vision 2030”

 

Abstract

This case-cum-research paper examines the globalization strategy of Gujarat Cooperative Milk Marketing Federation (GCMMF), popularly known as Amul, through its international joint ventures (JVs) since 2023. Traditionally rooted in India’s White Revolution and cooperative principles, Amul has embarked on a new phase of internationalization via partnerships in the United States (with Michigan Milk Producers Association in 2024), Europe (with Spain’s COVAP in 2025), and emerging talks in Oman aligned with an India–Oman Free Trade Agreement. The study analyzes strategic motives, cooperative synergies, regulatory navigation, and sustainability goals underpinning these ventures. Using frameworks such as SWOT, Porter’s Five Forces, and the Uppsala internationalization model, the paper evaluates how Amul balances farmer-centric values with global competitiveness. It further links these ventures to economic theories of cooperative internationalization and tests hypotheses on growth, risk sharing, and market access. The paper projects implications for Amul’s Vision 2030 of becoming the world’s largest dairy brand with turnover exceeding ₹1 lakh crore, while achieving sustainability targets. The case contributes to literature on emerging market multinationals and cooperative-led globalization and offers rich teaching potential for strategy, international business, and agribusiness management courses.

Keywords: Amul, GCMMF, Cooperative globalization, Joint ventures, Internationalization, Dairy industry, Vision 2030, Emerging markets.

 

1. Introduction

Globalization in agribusiness has traditionally been dominated by investor-owned multinationals. However, cooperative enterprises from emerging economies are increasingly venturing abroad, challenging conventional ownership and governance models. Amul, India’s largest dairy brand under GCMMF, represents a unique case of farmer-owned globalization.

With over 3.6 million milk producers, Amul transformed India into the world’s largest milk producer through the White Revolution. For decades, its growth remained largely domestic, supported by strong branding, vast procurement networks, and affordable pricing. Post-2023, however, Amul has initiated a strategic shift toward international joint ventures, marking a new chapter in its evolution.

This paper explores:
How can a cooperative rooted in local farmer welfare successfully globalize through strategic partnerships while sustaining its cooperative ethos?

 

2. Company Background: The Amul Cooperative Model

Founded in 1946 in Anand, Gujarat, Amul operates through a three-tier cooperative structure:

1. Village Milk Societies – Owned by farmers, collecting milk daily.
2. District Unions – Processing milk into products.
3. State Federation (GCMMF) – Marketing and branding under “Amul”.

Key features:

• Farmer ownership: 3.6 million producers.
• Brand strength: Trusted household name in India.
• Product portfolio: Milk, butter, cheese, ice cream, chocolates, protein products, and organics.
• Scale: Turnover above ₹80,000 crore, exports to 50+ countries.

Amul’s philosophy—“Value for money for consumers and fair returns for farmers”—has driven domestic success. Yet globalization poses new challenges of regulation, competition, and cultural adaptation.

 

3. Evolution toward Internationalization

Historically, Amul focused on exports of milk powder, butter, and ethnic products to diaspora markets. However, exports alone limited brand presence due to tariffs, cold-chain constraints, and regulatory barriers, especially for fresh milk.

Post-2023, Amul adopted a JV-led market entry strategy, emphasizing:

• Local production.
• Shared cooperative values.
• Risk and investment sharing.
• Faster regulatory compliance.

This mirrors the Uppsala model, where firms internationalize incrementally—starting with culturally closer or niche markets (diaspora) and gradually expanding.

 

4. Case Description: Key International Joint Ventures

4.1 United States: Partnership with Michigan Milk Producers Association (MMPA), 2024

In March 2024, Amul partnered with MMPA, a major dairy cooperative in Michigan.

Objectives:

• Launch fresh milk and dairy products in the US.
• Target Indian and Asian diaspora in Detroit and nearby cities.
• Build brand recognition in a mature dairy market.

Rationale:

• The US has strict FDA regulations and strong incumbents.
• Local production with MMPA ensured compliance and distribution reach.
• Diaspora demand reduced market uncertainty.

Strategic Significance:
This JV marked Amul’s first large-scale foray into fresh milk abroad, shifting from export to local manufacturing.

 

4.2 Europe: Partnership with COVAP, Spain, 2025

In June 2025, Amul formed a JV with COVAP, Spain’s leading dairy cooperative processing over 400 million liters annually.

Launch Markets:

• Madrid and Barcelona initially.
• Rapid expansion to Malaga, Valencia, Seville, Córdoba, and Lisbon (Portugal).

Strategic Drivers:

• EU’s stringent food safety and traceability norms make imports costly.
• COVAP’s infrastructure enabled immediate compliance.
• Both partners share cooperative ownership and farmer-centric missions.

Statements:
Amul MD Jayen Mehta described the tie-up as aligning with India’s vision of making Amul a global dairy leader. COVAP emphasized blending Spanish processing expertise with Amul’s brand strength.

Strategic Significance:
The COVAP JV serves as Amul’s gateway to Europe, paving the way for future expansion into Germany, Italy, and Switzerland.

 

4.3 Emerging Middle East: Oman JV (2025+)

By late 2025, discussions began with an unnamed Omani dairy cooperative/firm for a JV, expected to be facilitated by an India–Oman Free Trade Agreement.

Potential Benefits:

• Strategic location as a Gulf hub.
• Rising demand for fresh dairy in the Middle East.
• Reduced tariffs and faster approvals under FTA.
• Opportunity for local processing and regional exports.

Strategic Significance:
This could become Amul’s first manufacturing base in the Gulf, enabling access to GCC markets and Africa.

 

5. Strategic Motives Behind Amul’s JVs

5.1 Market Access

• Overcomes tariff and non-tariff barriers.
• Enables fresh milk entry—otherwise unviable through exports.
• Uses diaspora as initial demand anchors.

5.2 Cooperative Synergy

• Partnerships with farmer-owned cooperatives (MMPA, COVAP).
• Shared values reduce cultural friction and governance conflicts.
• Mutual learning in technology, quality, and farmer services.

5.3 Risk Sharing

• High capital and regulatory risk in developed markets.
• JV spreads investment and operational uncertainty.

5.4 Brand Globalization

• From ethnic export brand to mainstream dairy brand.
• Supports PM Modi’s vision of Amul as a global icon.

5.5 Sustainability and Scale

• Local sourcing cuts logistics emissions.
• Supports Vision 2030 goals:
• 35% carbon reduction.
• 50% groundwater use reduction.
• Expansion in cheese, protein, and organic segments.

 

6. Analytical Frameworks

6.1 SWOT Analysis

Strengths

• Strong brand equity.
• Farmer-owned supply base.
• Proven cost leadership.
• Cooperative goodwill.

Weaknesses

• Limited global experience in fresh milk.
• Dependence on partners abroad.
• Complex governance.

Opportunities

• Health-conscious global consumers.
• FTAs enabling expansion.
• Niche diaspora markets scaling to mainstream.
• Organic and protein demand.

Threats

• Intense competition from global giants (Nestlé, Danone).
• Regulatory shifts in EU/US.
• Currency and logistics volatility.
• Climate risks.

 

6.2 Porter’s Five Forces (EU Context)

• Rivalry: High – established brands and private labels.
• Threat of Entry: Medium – high regulation but attractive market.
• Buyer Power: High – retailers dominate.
• Supplier Power: Medium – farmers via cooperatives balance power.
• Substitutes: Medium – plant-based alternatives.

Implication: Differentiation via cooperative story, sustainability, and value pricing is critical.

 

6.3 Uppsala Internationalization Model

Amul follows:

1. Exports to diaspora.
2. JVs in culturally or niche-linked markets.
3. Gradual learning and expansion to core markets.

This staged approach minimizes risk while building experiential knowledge.

 

7. Financial and Growth Implications

Amul targets:

• ₹80,000 crore+ turnover in near term.
• ₹1 lakh crore by 2030, driven by:
• International JVs.
• Value-added products.
• Organics and proteins.

Hypothesis 1:
International JVs positively impact Amul’s turnover growth rate.

Hypothesis 2:
Cooperative partnerships reduce entry risk and improve sustainability performance.

Future research can test these using regression models linking JV investments, export intensity, and financial outcomes.

 

8. Risks and Regulatory Challenges

EU Markets

• Strict food safety, animal welfare, and traceability.
• Carbon footprint disclosure.
• Labeling and origin rules.

US Markets

• FDA compliance.
• Strong unions and pricing pressures.
• Brand acceptance beyond diaspora.

Middle East

• Political and trade uncertainties.
• Water scarcity for dairy farming.
• Cultural preferences.

Mitigation:

• Local partners.
• Digital supply chains (IBM collaboration).
• Policy advocacy through trade bodies.
• Sustainability investments.

 

9. Sustainability as Strategic Lever

Amul’s Vision 2030 emphasizes:

• Carbon emission reduction.
• Water conservation.
• Farmer income enhancement.
• Ethical sourcing.

International consumers increasingly value ESG credentials. Amul’s cooperative DNA offers a powerful narrative—“milk with a human face.”

 

10. Future Outlook to 2030

Geographic Expansion

• Deeper Europe: Germany, Italy, Switzerland.
• Middle East hub via Oman.
• South Asia and Africa.

Product Strategy

• Cheese and whey proteins.
• Functional nutrition.
• Organic dairy.

Strategic Scenarios

1. Optimistic: Multiple JVs, ₹1 lakh crore turnover, strong EU presence.
2. Moderate: Select markets succeed, gradual scaling.
3. Pessimistic: Regulatory setbacks and intense competition limit growth.

 

11. Recommendations

1. Strengthen JV Governance: Clear control rights and farmer representation.
2. Invest in Brand Storytelling: Highlight cooperative and sustainability values globally.
3. Digital Integration: Traceability and AI-driven demand forecasting.
4. Policy Engagement: Proactively shape dairy trade standards.
5. Research & Innovation: Low-carbon dairy, plant-dairy hybrids.

 

12. Conclusion

Amul’s journey from Anand to global markets reflects a bold experiment in cooperative globalization. By leveraging joint ventures with like-minded partners, Amul seeks to balance global ambition with local farmer welfare. Its US, Spain, and prospective Oman partnerships demonstrate a strategic blend of market access, risk sharing, and value alignment. If executed effectively, Amul could redefine how cooperatives from emerging economies compete on the world stage—proving that inclusive ownership and global scale are not mutually exclusive.

 

Teaching Notes

Case Positioning

This case is suitable for:

• MBA/PGDM courses in Strategy, International Business, Agribusiness.
• Executive programs on emerging market multinationals.
• PhD seminars on cooperative economics.

 

Learning Objectives

Students should be able to:

1. Understand JV as an entry mode for regulated markets.
2. Analyze cooperative models in globalization.
3. Apply SWOT, Five Forces, and Uppsala frameworks.
4. Evaluate sustainability as a strategic tool.
5. Debate growth vs. cooperative values.

 

Discussion Questions

1. Why did Amul choose JVs instead of wholly owned subsidiaries for the US and EU?
2. How does Amul’s cooperative structure influence partner selection and strategy?
3. Compare Amul’s US and Europe entry strategies—what are the key differences?
4. Can Amul compete with global giants like Nestlé and Danone? How?
5. What risks could derail Vision 2030, and how should Amul mitigate them?
6. Should Amul prioritize diaspora markets or mainstream consumers first?

 

Suggested Classroom Flow (90 minutes)

• 15 min: Case overview & context.
• 25 min: Group SWOT and Five Forces.
• 20 min: Debate: Cooperative vs. corporate globalization.
• 20 min: Strategy recommendations.
• 10 min: Instructor wrap-up.

 

Key Takeaways for Students

• Entry mode choice depends on regulation, risk, and capabilities.
• Ownership philosophy shapes strategy.
• Sustainability can be a growth lever, not just compliance.
• Emerging market firms can globalize creatively via partnerships.

References

United States JV (MMPA, 2024)

·         Gujarat Co-operative Milk Marketing Federation Limited. (2024, March 26). Amul launches fresh milk in the United States of America [Press release]. Amul. https://www.amul.com/files/pdf/Press_Release_-_Amul_launches_Fresh_Milk_in_the_United_States_of_America_-_March_2024_26032024.pdf Amul

·         NDTV. (2024, March 23). Amul, “Taste of India”, goes international with big launch in US market. NDTV. https://www.ndtv.com/india-news/amul-taste-of-india-goes-international-with-big-launch-in-us-market-5295165 www.ndtv.com

Europe JV (COVAP, 2025)

·         Cooperativa Ganadera del Valle de los Pedroches (COVAP). (2025, June 5). Amul launches milk in Spain & EU. COVAP. https://www.covap.es/en/or-interest/new/news/corporativo-en/amul-launches-milk-in-spain covap.es

·         Singh, R. (2025, June 5). Amul expands international operations, launches milk in Spain & EU. LiveMint. https://www.livemint.com/companies/news/amul-expands-international-operations-launches-milk-in-spain-eu-11749081915772.html mint

·         Business Standard. (2025, June 5). Amul partners with COVAP to launch milk in Spain, eyes expansion in Europe. Business Standard. https://www.business-standard.com/companies/news/amul-covap-partnership-milk-spain-eu-europe-125060500212_1.html Business Standard

·         Financial Express Bureau. (2025, June 5). Amul milk to be launched across Spain & EU. The Financial Express. https://www.financialexpress.com/business/industry-amul-milk-to-be-launched-across-spain-eu-3868919/ The Financial Express