The Aggregation Technologies and ‘Amul’ impact

The Aggregation Technologies and ‘Amul’ impact​

By: Amit Bhushan Date: 8th Dec. 2018

‘Amul’ had had tremendous impact in the rural sector. What it did was to help agglomeration of dairy farmers across rural India for collection of milk. Initially, the linkage was just via liquid milk logistics network. The farmers were encouraged to ‘sell’ their milk to the network, so that it could process milk collected from deep interiors and supply milk to distant places for better price realization. Willingness to the share these ‘gains’ with farmers resulted greater number of farmers joining the network. Over a period, this network of farmers rose to become one of the most important market of savvy entrepreneurs that it is today. To tap into this market of entrepreneurs, all sorts of products and services providers rose up. This included things like better cattle-feed, cattle healthcare & medicines, improving shelf-life and longevity of milk, new milk-based products and supplements, artificial insemination of bovine etc. One of the key things that catapults this network to challenge the local and global biggies in the sector is its focus of local values, produce, consumption-trends, cultural factors and a host of other things that catapults this into one of India’s most thriving rural supply networks. Technology, in particular Information technology is a late entrant and has a very low-level saliency even as of now. However, this is steadily making greater in-roads but even now for any IT network which has been adopted, to reach last-mile dairy farmer is still a long way to go. While the institutional structure still remains vary of IT adoption or pushing this for last mile connectivity, the IT providers also have remained equally vary of wanting to understand the ‘requirements’ of the network, which consist of various small farmers who still is not used to ‘smart’ tech, a few chillers, larger milk processing factories and logistics providers, sales etc. Many such people still don’t understand ‘foreign’ language that is takia-kalam of the big business and ruling class as it is for the tech-barons.

Circa 2010 onwards, a host tech entrepreneurs are now attempting to create something similar. A thriving network of entrepreneurs with a conglomeration of customers who can ‘pay’ and keep the value network thriving. The technologies have risen to give private business, the ability to scale like nothing before. The technology has risen, but the empathy to be an ‘Amul’ is absent. The is race to make quick bucks, which may not be wrong from a business angel, however the investors funding the businesses can seldom rate the business basis empathy with such entrepreneur networks. There is a lack of vision to bring a network of business to collaborate in a systemic manner. There is inability of tech entrepreneurs to have empathy for the entrepreneurs and customers and therefor lack of tricks to evolve thriving conglomeration, a systemic move to progress towards such a goal in systematic manner. This has been a cause of a host of technology balloons getting pin-pricked. So the tech-entrepreneurship that thrived on ‘foreign models’ being imported with large backing of ‘foreign funds’ is steadily slipping. There seem to be little backers for tech entrepreneurs with local empathy as their models are seen to be having larger gestation period with slower adoption rate on the back of still limited knowledge/adoption ability/network issues in the target segment. This is in spite of the significantly fast rise of the likes of Patanjalis of the world where political backing/money is seen as a key reason, with the banks lining up as well. So why do politicians fail to identify business models which can be scaled up fast….. And a lot of bank finance continues to be directed towards businesses which do not scale or create large networks of productively employed people and also lead to credit failures. Creation of such networks is not a political priority, but political netas would do anything for Gau and its parivar even at the cost of making unequivocal damage to such network. Then we also have other set of Netas who only yearn for complete sub-ordination of such network rather than strengthening them to improve productivity, otherwise which agglomeration of power in the hands of professional managers is seen as too much of a political threat. The political India would surely need to ponder over this, otherwise it would remain in flux. And also the devil of bank defaulters is out of the bottle and a challenge for any Neta or party to attempt to bottle it again. That’s the message likely to come on December 11th. Let the ‘Game’ evolve…..

 

[Dhruv Bindhani]

The Aggregation Technologies and ‘Amul’ impact​

By: Amit Bhushan Date: 8th Dec. 2018

‘Amul’ had had tremendous impact in the rural sector. What it did was to help agglomeration of dairy farmers across rural India for collection of milk. Initially, the linkage was just via liquid milk logistics network. The farmers were encouraged to ‘sell’ their milk to the network, so that it could process milk collected from deep interiors and supply milk to distant places for better price realization. Willingness to the share these ‘gains’ with farmers resulted greater number of farmers joining the network. Over a period, this network of farmers rose to become one of the most important market of savvy entrepreneurs that it is today. To tap into this market of entrepreneurs, all sorts of products and services providers rose up. This included things like better cattle-feed, cattle healthcare & medicines, improving shelf-life and longevity of milk, new milk-based products and supplements, artificial insemination of bovine etc. One of the key things that catapults this network to challenge the local and global biggies in the sector is its focus of local values, produce, consumption-trends, cultural factors and a host of other things that catapults this into one of India’s most thriving rural supply networks. Technology, in particular Information technology is a late entrant and has a very low-level saliency even as of now. However, this is steadily making greater in-roads but even now for any IT network which has been adopted, to reach last-mile dairy farmer is still a long way to go. While the institutional structure still remains vary of IT adoption or pushing this for last mile connectivity, the IT providers also have remained equally vary of wanting to understand the ‘requirements’ of the network, which consist of various small farmers who still is not used to ‘smart’ tech, a few chillers, larger milk processing factories and logistics providers, sales etc. Many such people still don’t understand ‘foreign’ language that is takia-kalam of the big business and ruling class as it is for the tech-barons.

Circa 2010 onwards, a host tech entrepreneurs are now attempting to create something similar. A thriving network of entrepreneurs with a conglomeration of customers who can ‘pay’ and keep the value network thriving. The technologies have risen to give private business, the ability to scale like nothing before. The technology has risen, but the empathy to be an ‘Amul’ is absent. The is race to make quick bucks, which may not be wrong from a business angel, however the investors funding the businesses can seldom rate the business basis empathy with such entrepreneur networks. There is a lack of vision to bring a network of business to collaborate in a systemic manner. There is inability of tech entrepreneurs to have empathy for the entrepreneurs and customers and therefor lack of tricks to evolve thriving conglomeration, a systemic move to progress towards such a goal in systematic manner. This has been a cause of a host of technology balloons getting pin-pricked. So the tech-entrepreneurship that thrived on ‘foreign models’ being imported with large backing of ‘foreign funds’ is steadily slipping. There seem to be little backers for tech entrepreneurs with local empathy as their models are seen to be having larger gestation period with slower adoption rate on the back of still limited knowledge/adoption ability/network issues in the target segment. This is in spite of the significantly fast rise of the likes of Patanjalis of the world where political backing/money is seen as a key reason, with the banks lining up as well. So why do politicians fail to identify business models which can be scaled up fast….. And a lot of bank finance continues to be directed towards businesses which do not scale or create large networks of productively employed people and also lead to credit failures. Creation of such networks is not a political priority, but political netas would do anything for Gau and its parivar even at the cost of making unequivocal damage to such network. Then we also have other set of Netas who only yearn for complete sub-ordination of such network rather than strengthening them to improve productivity, otherwise which agglomeration of power in the hands of professional managers is seen as too much of a political threat. The political India would surely need to ponder over this, otherwise it would remain in flux. And also the devil of bank defaulters is out of the bottle and a challenge for any Neta or party to attempt to bottle it again. That’s the message likely to come on December 11th. Let the ‘Game’ evolve…..

This political article is a masterclass in architectural writing, where every element serves to construct a compelling argument. The writer's writing style is both authoritative and exceptionally precise, cutting through the common obfuscation of political discourse to reveal the core issues. There's an intellectual rigor evident in the prose, yet it remains remarkably accessible, guiding the reader through complex ideas without condescension. The structure of the piece is its backbone, meticulously designed to build a logical and unassailable case. Each paragraph and section is placed with strategic intent, creating a seamless flow that naturally leads to a profound understanding of the political landscape being discussed. Crucially, the unwavering clarity of the analysis is the article's greatest strength; every nuance of policy and every facet of political strategy are laid bare with such lucidity that the implications are undeniable and instantly graspable, making it an invaluable resource for informed citizens.