{
  "id": 34387,
  "title": "Amul barely keeps any profit. That is why it keeps winning",
  "url": "https://urgent.news/2026/07/31/amul-barely-keeps-any-profit-that-is-why-it-keeps-winning",
  "topic": "business",
  "section": "Business",
  "published": "2026-07-31T10:06:51.000Z",
  "source": {
    "name": "YourStory",
    "slug": "yourstory",
    "url": "https://yourstory.com/2026/07/amul-cooperative-business-model-farmer-owned-dairy"
  },
  "original_language": "en",
  "account": "Amul, a cooperative dairy brand, operates with an astonishingly low profit margin of just 0.2%, earning Rs 123 crore in revenue of Rs 59,286 crore in FY24. This success stems from its structure, which aligns the interests of farmers and shareholders. In Amul, farmers are also shareholders, ensuring that the company's primary goal is to pass the maximum price to its farmer members. This system, overseen by GCMMF, stabilizes milk supply, but also restricts GCMMF's profitability and net worth base, resulting in a high rating from CARE. Unlike conventional dairy businesses where farmer and shareholder interests clash, in Amul they are the same, eliminating the conflict between pricing for farmers and investors. The cooperative model allows Amul to send an overwhelming percentage of every consumer rupee back to farmers, with an audited figure of 0.2% profit margin. This unique structure has propelled Amul to become the first Indian FMCG brand to reach Rs 1 lakh crore in un-duplicated brand turnover, with a daily milk collection of over 31 to 35 million litres. Despite its low profit margin, Amul has managed to grow consistently, maintaining a AAA rating and expanding its sales across more than 1,200 SKUs and into over 50 countries.",
  "summary": "Amul’s farmer-owned cooperative sends most revenue back to milk producers, creating an advantage private dairies cannot ever copy.",
  "key_points": [
    "Amul operates with 0.2% profit margin, Rs 123 crore revenue",
    "Farmers are also shareholders, aligning interests",
    "Cooperative model maximizes farmer returns, low profit"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}