CHAPTER 1: GENERAL INFORMATION ABOUT COMPANY

SURAT MILK UNION LIMITED

1.1 INTRODUCTION
SUMUL, formerly known as Surat Milk Union Ltd, is a district union that acts as a
manufacturing unit of dairy products for the Gujarat Co-operative milk marketing Federation
Limited. The co-operative endeavour is aimed at helping marginal farmers and down-trodden
tribal people to lead a healthy life and improve their standard of living through the use of
scientific animal husbandry techniques. The current version of Sumul takes pride in
providing milk and dairy products to the people of Surat city and its surrounding areas.
Today, Sumul holds strong brand equity in Surat district and commands over 70% of liquid
milk in Surat city. To ensure a fast and timely delivery of milk, the co-operative has as many
as 1531 milk transportation routes and 1386 regular employees and 145 full time employees.

Sumul is the third largest union in the state, with an annual milk procurement of 160,929,736
litres. They operate throughout the Sumul region, focusing on the Surat market, which
currently consumes approximately 4.5 lakh litres of milk per day. They offer a variety of
products like paneer, ghee, flavoured milk, sweets, shrikhand, lassi, and buttermilk. The
organisation is led by a committee of 13 leaders, each representing a taluka of Surat district,
who collectively elect a president. Sumul employs around 1,100 people, including contract
employees.
The private trade monopolised the milk market and took advantage of both the milk
Producers and the consumers. The price of milk procurement used to be very low and
fluctuated at the sole discretion of the traders traditional bhatia’s. This has taken advantage of
the fact that there was no infrastructure or processing facilities and managed to prevent the
producers from getting fair benefits from the available marketable surplus. As a result, the
income of the farmers from milk was extremely low and there was no incentive for them to
pursue modern dairy farming techniques. The farmers hated the system but were helpless
because of these traditional restrictions and due to their lack of resources.

1.2 HISTORY OF SUMUL

Sardar Vallabhbhai Patel visits to Anand in 1939, he interacted with local farmers and
stressed the need for a dairy for the milk trade. At that time, the only dairy in the area was
‘Polsun Dairy’, which was owned by the British and did not offer much compensation to the
Indian milkmen. In order to help the Indian farmers, ‘AMUL Dairy’ was set up in 1946. It
was at this time that ‘Dr. Kurien’ was appointed as the head of the dairy in collaboration with
‘Dr. Dalaya’. In 1947, India gained its independence and AMUL Dairy got an order from
WHO to produce buffalo milk powder. Dr Kurien and Dr. Dalaya came up with a new
method for producing buffalo milk powder. After booking Lal Bahadur shastri visited
Ajampur village, he promised to provide more money for systematic development of dairy
industry. For proper development of dairy industry, National Dairy Development Bank
(NDDB) was established in Anand. In 1971-72, NDDB started Operation Flood–1
programmer to all dairies. In 1977, Operation Flood-2 was started. In 1990, Operation Flood-
3 was started. In this operation, transportation machinery and pressmen for milk at low cost
were given importance. Here, farmers were made aware of their rights and duties. High
productivity of milk at cheap started cooperation of development programs.

In 1998-99, India produced two million tonnes of milk, making it the first milk-producing
country in the world with over 68 million Americans. As a result, it became known as the
"White Revolution". Sumul has five chilling centers in Bajipur, NaviPrada, Uchchal,
Sumuldairy, and Sumuldan to ensure safe deliveries of raw milk for processing and
packaging into various types of liquid milk. In order to improve the nutrition of the cattle at
the village level, Sumul has set up the cattle feed factory in Chalthan, and also has an oil
refined oil plant in DCS level village.

1.3 COMPANY PROFILE

The Surat milk union Ltd, formerly known as the Surat district co-operative milk producer’s
union, is one of the seventeen district unions which act as the manufacturing units of milk
products for Gujarat co-operative Milk Marketing Federation Limited (GMMFL), the
marketer of the Amul brand.

Surat District is one of the pioneers in India in managing cotton and milk trade through co-
operatives. Before the entry of SUMUL, the area was dominated by Private Milk Traders.
 Private trade monopolised the Milk market and
took advantage of both the milk producers and
the consumers. In the past, the milk
procurement price was fixed at the sole
discretion of the traders (the traditional Bhatias)
and was very low.

These traders took advantage of the fact that

there was no infrastructure or processing
facilities and managed to prevent producers
from getting fair benefits from the available marketable surplus. As a result, the farmers'
income from milk was very low, and there was no incentive for them to engage in modern
dairy farming practices. The farmers hated this system, but they were helpless because of
these traditional constraints and due to their limited resources.

In contrast, dairying was never a viable option for tribal's (the largest rural population of the
District) due to the lack of milk marketing infrastructure in their taluka, the lack of access to
their villages, and the taboos around keeping buffaloes preventing the entire tribal population
from considering it as an income source. The tribal kept their cows for the purpose of
producing bullocks instead of milk, which was not sufficient even for nursing the calves. The
majority of tribal's were not aware of the common milk breeds.

Clean and pure milk was virtually non-existent in the

market. Uncontrolled adulteration of the milk was
practised by these traders to satisfy the increasing demand
of the city. To save the poor milk producers from the trap
of these private traders, organisation and integration of
the procurement, processing & marketing of milk & milk
products by the farmers themselves on a proper co. Milk processing unit
operative line is necessary; this will also eliminate
middlemen, fair distribution of benefits to the rural milk producers and indirectly to the urban
milk consumers.
Names Designation Photos
Shri Mansinhbhai Chairman
Representative:
Kalyanjibhai Patel Vanskui Dudh Uipadak Co
operative Society, Vanskui,
Taluka - Mahuva, Dist Surat
Mobile: 9913342000

Shri Rajeshkumar Vice Chairman

Representative,
Kantilal Pathak Mosali Duch Utpadak Co
operative Society, Ltd A:t
Mosli Talaka: Mangrol, Dist:
Sarat:394421
Mobile: 98251 07530

Shri Riteshbhai Amarsinh Representative,

Vasava Wadi Dudh Utpadak Co-
operative Society, Ltd. At ed
Post - Wadi, Taluka -
Umarpada, Dist: Surat
Mobile: 99093 74848

Shri Nareshbhai Bhikhabhai Representative,

Patel Bootwada Dudh Utpadak
Co-operative Society, Ldt.
At &Post - Bootwada,
Taluka - Valod, Dist: Tapi
Mobile - 98258 73603

Shri Sandipbhai Jayantilal Representative,

Desai
Kanakpur-Kansad Dudh
Shri Bharatsinh Gumansingh Representative,
Dambha Dudh Utpadak Co-
Solanki
operative Society, Ldt. At
&Post: Dambhe, Taluka -
Palsana, Dist: Surat
Mobile: 99795 00055