Amul, Grameen & The Case For Social Business

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AMUL is the story of modern India and also of one great man who

embraced nationalism and the Gandhi spirit of ‘jobs to feed many

mouths’ . Verghese Kurien, during his illustrious career spanning

over 50 yrs was better known as , ‘the Milk man of India’, ‘ Father
of the white revolution’, ‘ The Technocrat Farmer ‘ , Visionary leader
behind Operation Flood, and so on . A little known fledgling milk
producer in the rural countryside of Gujarat in 1946 was the Kaira
Co operative milk union , an initiative of Sardar Patel. Verghese
Kurien then a US qualified Dairy Engineer , ambitious at 27 , stayed
back reluctantly though at the request of the local entrepreneur
Tribuvandas Patel who wanted to set up a processing plant .
Nationalist spirit prevailed over this young man and he went on to
script the story of the most respected family brand in the country .
AMUL, Anand Milk Union Limited was baptized in 1955 and Nehru
the PM, embraced the diminutive Kurien at the inaugural. The rest is
history. The Gandhian ideal of self reliance found it’s epitome in the
Green revolution and more emphatically the thumping success of the
White revolution, a brainchild of Dr Kurien.

India needed to build a mass base for it’s industry and agriculture to
fulfill the dream of employment for all . Early industries were limited

to Textiles , Paper & Printing , Fishing , besides Agri based cottage
industries . The Co operative movement was to set the bulwark for
employment generation with the labour as partner. Against this
backdrop came the Dairy development that took roots in Gujarat.
When Dr Kurien took over the responsibility of infusing new growth
initiatives there were only two milk unions totaling a few hundred
farmers, but when he left in 2006 ,the movement had spread all over
India and had over 10 million shakeholder farmers, distributors,

retailers, etc. There is a Women’s only enterprise led by the social

activist Ms Ela Bhat encouraging women entrepreneurs . SEWA’s

contribution to Amul consists of 50 women’s unions.

The challenge was to keep the Co- operative spirit as the basic concept
and not undo it , for the farmer was the basic focus then and now.
When the co operative federations and structure is today under threat
of being dismantled, AMUL stands testimony to a commitment that
stood the test of time . Hats off to Dr Kurien’s strong leadership and
shrewd business sense that prevailed over the tumultuous consumer
business in modern India. His social commitment and competency won
many a case for political interference . Can our business leaders today
think of making success of real labour intensive business ventures or go
for lean, mean private entities that make the capitalist wealthier and
leaves the man at the grassroots holding on to his empty plate . The
stalwarts of the Independence era who’d upheld the grand idea of
a self reliant nation with food for all & means to employment have
found recourse in TVs and mobile phones and not toilets or access
to cooking fuel. Is the motto of Garibi Hatao & jobs to feed more
mouths become just a passing fad . Was Amul Kurien the last man
standing, leaving a legacy of ensuring business with purposeful growth

thro’ mass movements & by truly holding hands with the rural poor .

Professor Mohamad Younis of Bangladesh is another luminary in
the social business of micro finance. What started in 1976 in a small
village next to the Chittagong University , has today grown into a
nationwide banking success , where the stakeholder is the borrower
himself. It deals in a $ 1.5 billion annual turnover extending credit
to over 8 million borrowers . Micro credit as a means to empower
and eradicate poverty has seen 80% of the rural poor in Bangladesh
enlisted so far and being self productive . 90% of the bank’s clientele
is women since according to Prof Yunus they are more reliable. Prof
Yunus is a recipient of the Nobel Peace Prize 2006. President Obama
conferred a special recognition to honour this Banker to the Poor in
2009.

But the latest in the future of this social business leaves ominous signs.

The Govt of Bangladesh has very recently amended the statute of
the bank and brought it under the Government’s direct control.
This has not been acceptable to the Grameen Foundation that has
extended the model in other initiatives . The poor families that were
shareholders would be left stripped of their rights to ownership .
The government’s most recent action not only threatens the bank’s
independence, which has been crucial to its success, it challenges the
ownership rights of millions of poor women who control 97 percent of
the shares of the Grameen Bank and whose collective savings (about
$1.4 billion) finances its operations. It is a powerful blow against an
institution that has flourished and helped millions of poor people
largely because it is in the hands of women, said one report .

Yes, success has it’s many critics and politics can play dirty . The
model of working of the Grameen bank should be left to itself and not
be usurped . This is the raison de etre behind the partnership with
the poor in the third world countries. Incidentally the concept is being
introduced outside Bangladesh in nations like China, Taiwan and
others . May the grand vision and hard work of luminaries like Prof
Yunus , Dr Kurien and others be the breeding ground for emancipation,
education and eradication of poverty across the world.


-Bijoy Joseph


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