Difference Between Nestle and Amul

Nestle and Amul, are both leading multi-national organizations dealing with milk. Though their history and organizational structures vary greatly, they continue to be strong competitors throughout the years. Additionally, as the modern world witnessed a rise in people’s purchasing power, the dairy market is effectively turning into a lucrative business, adding to the tussle between the two brands.

Nestle vs Amul

The main difference between Nestle and Amul is that Nestle is a conglomerate corporation based in Switzerland. It is one of the largest food businesses in the world whereas Amul operates as a co-operative based in India. It established India as the biggest manufacturer of milk products and milk in the world.

Nestle vs Amul 1

Nestle is the biggest food company. It was founded in Switzerland. It was formed upon the union of 2 organizations Farine Lactee Henri Nestle and Swiss Milk Company. which specialized in producing condensed milk and infant formula products, respectively. Formed in 1905, it has enjoyed increasing popularity for its ever-expanding range of products throughout the years.

Amul, fundamentally a brand of the Milk Producers’ Union of Kaira district is a harmonious society based in Anand, Gujarat, India that specializes in Milk and Milk Products. It was the greatest contributor to India’s White Revolution and successfully made the country the largest producer of milk in the world.

Comparison Table Between Nestle and Amul

Parameters of ComparisonNestleAmul
Parent CompanyThe parent company of nestle is Swiss Milk Company The parent company of Amul is the Milk Producers Union of Kaira district.
Country of OriginThe country of origin is Nestle SwitzerlandThe country of origin is India
Titles AwardedWorld’s largest food companyStrongest contributor in the White Revolution of India.
Most Popular ProductsCondensed Milk, Infant Formula ProductsMilk and Dairy Products
Organization StructureIt is a Conglomerate Corporation.It is a Co-Operative organization.

What is Nestle?

Nestle is a conglomerate corporation that (mainly) produces food and drink products and operates across the globe in several countries. A Swiss brand, Nestle’s headquarters are situated in Vevey, Switzerland. Upon going through evaluations based on revenue and other metrics, it emerged (globally) as the largest food company, and has retained the position ever since 2014.

It was formed by the union of Farine Lactee Henri Nestle and the Swiss Milk Company. It was established in 1866 by brothers Charles and George Page produced condensed milk, whereas the latter, founded in 1867 by Henri Nestle produced infant formula products. Following the merger, the company grew significantly during WW-I and WW-II as it began expanding its offerings. Today, the brand operates in more than 80 locations across the world.

Following India’s independence, Nestle set up a plant in the country, mainly as an effort to respond to the country’s revised economic policies. Organized in line with the matrix structure, Nestle is a decentralized organization. Though it makes major decisions (decisions pertaining to market strategy, etc.) at the headquarters level, its sub-ordinate branches are awarded a proportionately high level of autonomy (when compared to the typical industrial scenario).

What is Amul?

Amul was originally founded by the Milk Producers Union of Kaira district. It is a cooperative society. It is now owned by 3.6 million producers of milk. Its headquarters are situated in Anand, Gujarat. Formed in 1946, it is a brand managed by the Milk Marketing Federation of Gujrat. It is a cooperative body. The term Amul is emanated from the Sanskrit term ‘Amulya’, indicating invaluable/ charming.

Most notably, Amul was the most significant contributor to the success of the White Revolution of India. it set the nation as the most considerable producer of milk products milk in the world. Its founding members include esteemed personalities like Tribhuvandas Kishibhai Patel and Dr. Verghese Kurien. While Patel initiated and strengthened the co-operative’s technical and marketing progress, Dr. Kurien took the brand overseas and is credited for its long-lasting global presence.

Amul’s most remarkable feature as an organization is its perennial philosophy of giving back its profits to its ground-level stakeholders, the farmers of India’s western state, Gujarat. One of India’s iconic brands, it has always been associated with quality, affordability, and consistency, and has therefore built a great level of trust with dairy farmers and end consumers alike.

Main Differences Between Nestle and Amul

  1. Nestle is a conglomerate corporation whereas Amul is a co-operative.
  2. Nestle is based in Switzerland whereas Amul is based in India.
  3. Nestle was founded by the union of 2 companies Farine Lactee Henri Nestle and Anglo-Swiss Milk Company in 1905, whereas Amul was introduced as a brand by its parent organization, Milk Producers’ Union of kaira district in 1946 to market its product range.
  4. Nestle is one of the biggest food company of the world, whereas Amul emerged as the strongest contributor in White Revolution of india, eventually it made india the largest manufacturer of Milk Products and milk.
  5. Nestle’s most sought-after products include infant formula and highly saturated milk products but the company has expanded its product range greatly ever since its popularity began increasing during the World Wars whereas Amul specializes in Milk and Dairy Products, and along with periodic expansions in its product range, continues to register a strong presence in the global market.

Conclusion

Upon being acquainted with the aforementioned information, it is quite evident that both Nestle and Amul are Multi-National Organizations dealing in Milk and Dairy Products. Both organizations have an illustrative history in relation to their market presence and were led by highly intelligent professionals of the bygone eras.

Both continue to be leading producers of Milk and Dairy Products worldwide, and with time, have expanded their range of products, also venturing into varied domains in some instances. Both organizations differ fundamentally in their organizational structure and somewhere also in the values that guide them. While Nestle has been proclaimed as the largest Food Producer in the World, it has quite regularly been subjected to controversies, with allegations proven to be true upon subsequent investigations.

References

  1. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2776480
  2. https://link.springer.com/chapter/10.1007/978-981-15-8195-3_3
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