Amul’s Biggest Strategy 🔥

Amul is one of India’s most trusted dairy brands, but here’s the surprising truth — they don’t really make profit from milk. Yes, the same milk that reaches millions of homes daily often has extremely low margins, sometimes almost zero after accounting for procurement, processing, transportation, and distribution costs. So why does Amul continue to sell milk at such low profit? Because milk is not the real business… it’s the entry point. By selling milk at scale, Amul builds daily consumer habits, dominates retail shelves, and ensures its presence in almost every household. And when consumers decide to buy butter, cheese, ice cream, or other dairy products — they automatically choose Amul. This is where the real profits come in. This powerful business model is known as the Loss Leader Strategy, where a low-margin product is used to drive sales of high-margin products. In this video, we break down how Amul uses this strategy to build one of India’s strongest FMCG empires.