'Give More To Earn More'

The planning process is a holistic bottom-up approach that ensures everybody is involved... It's where strategic goals are decided collectively and drive action and progress at every level.

I distinctly remember my first meeting with Dr Verghese Kurien in the boardroom of our headquarters at Anand. It was a brand review meeting and one of my colleagues said: “Why can’t we reduce the quantity of Amulya, our dairy whitener, from 500 grams to 450 grams to make the price seem more attractive to customers?” To that Dr Kurien responded: “Never try to short-change your customer; she is always smarter than you.”

This is one mantra that has guided me throughout my career. I have been lucky to get the opportunity to work under the visionary leadership of Dr Kurien. Today, as managing director of the cooperative, I have two key stakeholders – 3.6 million farmers who are owners of Amul and supply us our raw material, milk, and the customers for whom we make our products. In 36 years, I have learnt that the more you give to these two stakeholders, the more you’ll earn. At Amul, I buy the raw material, milk, at the maximum possible price from our farmer members, and sell finished products to the customer at the most reasonable prices possible. This is just the opposite of every other CEO/MD’s role – he is required to maximise EBITDA by buying raw material at minimum price and selling finished goods at the highest price possible!