Financial Sustainability of Cooperative Dairy Models: A Comparative Study of Amul and Aavin

Authors:

* Jacinth Korace. T¹, ** Dr. V. Vardhini²

¹II MBA, Department of Management Studies,

Vels Institute of Science Technology and Advanced Studies (VISTAS)

²Assistant Professor, Department of Management Studies,

Vels Institute of Science Technology and Advanced Studies (VISTAS)

Abstract — In India, dairy cooperative is an important part of the rural economy as it provides employment, support to the farmers and also nutritional security. The purpose of this study is analysing the financial sustainability of two bigger cooperative dairy models in India, which include Amul and Aavin. The study seeks to assess the financial performance, efficiency of operation, and sustainability of these cooperative institutions by making a comparative analysis. The information in this study is secondary only, which comes from annual reports, government publications, journals and official websites for five years from 2020-21 to 2024-25. Data has been interpreted using various analytical tools like comparative financial statement analysis, ratio analysis, trend analysis, and percentage analysis. The results indicate that Amul’s financial sustainability is higher because of its higher revenue growth, profitability, liquidity position, operational efficiency, and diversified product portfolio. Although Aavin is a smaller market, it continues to grow in a stable manner and remains a significant part of the dairy industry in the region. The study has established that efficient cooperative governance, cost control, technological improvement, and product diversification are important determinants of long-term sustainability of dairy cooperatives. The research also offers recommendations to enhance operational and financial efficiency of the regional cooperative dairy system.

Keywords: Financial Sustainability, Dairy Cooperatives, Amul, Aavin, Profitability Analysis, Cooperative Governance