Verghese Kurien

"Immediately, new Indian press campaigns began to discredit both Tetra Pak and Verghese Kurien. The tetrahedron was said to be outdated and Tetra Pak was accused of trying to dump old obsolete machines in India. It quickly became apparent that the arguments were unsustainable considering that one of the key early arguments against Tetra Pak had been that the tetrahedron was far too expensive. Now, they were requesting a packaging system that used nearly 50 percent more material and required a laminate that was considerably more expensive than the tetrahedron’s. Moreover, the new laminate was more expensive than the Indian market could bear."

"Verghese Kurien’s joy over the appointment took a hit when he realized that NDDB was expected to be self-sustaining and that he would only receive a minimal sum to start the operations. He quickly realized that if he was to have any chance of success, he must seek help from outside."

"But even though Verghese Kurien succeeded in getting useful products, there was still an important component missing in the plan: Tetra Pak’s machines for the aseptic packaging of milk. Without them, he would never manage to transport the milk the long distance from the rural dairies to the urban consumers. Together with Tetra Pak, Kurien planned for the order of 44 machines that would be delivered in three batches during 1970 and 1971. The necessary laminated paper would be supplied from Sweden until the turn of the year 1971/72. Afterwards, a joint venture would be formed between Tetra Pak, the government-run Indian Dairy Corporation (IDC), and the private Indian packaging company Kant & Co. The newly formed company would start local production of the laminated paper. Alfa Laval would also be involved by providing dairy equipment. The entire deal would cost just over 70 million kronor – money that India could not afford to spend. To solve the tricky financing issue, Tetra Pak brought the matter up with Sida. Thanks to Gunnar Sträng personally backing the project, Sida promised to lend the necessary funds."

"But even though Verghese Kurien succeeded in getting useful products, there was still an important component missing in the plan: Tetra Pak’s machines for the aseptic packaging of milk. Without them, he would never manage to transport the milk the long distance from the rural dairies to the urban consumers. Together with Tetra Pak, Kurien planned for the order of 44 machines that would be delivered in three batches during 1970 and 1971. The necessary laminated paper would be supplied from Sweden until the turn of the year 1971/72. Afterwards, a joint venture would be formed between Tetra Pak, the government-run Indian Dairy Corporation (IDC), and the private Indian packaging company Kant & Co. The newly formed company would start local production of the laminated paper. Alfa Laval would also be involved by providing dairy equipment. The entire deal would cost just over 70 million kronor – money that India could not afford to spend. To solve the tricky financing issue, Tetra Pak brought the matter up with Sida. Thanks to Gunnar Sträng personally backing the project, Sida promised to lend the necessary funds."

"Kurien’s idea was as simple as it was brilliant. Over a five-year period, the NDDB would receive gifts, which would gradually decrease in volume. The dairies would convert them into milk, but at the same time be forced to buy milk from local producers. Their milk and the “gift milk” would be mixed and then sold on the local market, primarily in New Delhi, Bombay, Calcutta, and Madras. As the gifts decreased, they would increasingly be replaced by local milk while the dairies would modernize their distribution system. Local producers would gradually receive increasing income, which could be reinvested in the operation. After five years, their production would maintain such a standard and volume that they would no longer need foreign aid. India would thus become self-sufficient in milk. On October 31, 1968, Verghese Kurien had developed his plan so far that he found the time ripe to submit it to the Indian government for further conveyance to the UN’s Food and Agriculture Organization, FAO."

"⁠Verghese Kurien’s idea was for Western countries to donate their surplus as gifts to India. Once in India, the products would be converted into drinkable milk in the local dairies. But Kurien did not intend to repeat the same mistakes that Western aid agencies had committed in a number of countries. In various projects, they had distributed free food to the population. The only lasting effect of this had been that it completely wiped out the local producers, who could no longer sell their goods at prices that covered their costs. Therefore, the milk would not be distributed as aid to the population, but people would be allowed to buy the milk at the same price as the locally produced milk. Thus, the outdated Indian dairies would gain capital for the necessary renewals that awaited. At the same time, this approach would avoid destroying the local market by suddenly distributing milk for free.⁠"

"But that was not the only problem. Since coming to power in 1966, Prime Minister Indira Gandhi had increasingly begun to centralize control over India. For Verghese Kurien, it became increasingly apparent that it was the Gandhi family themselves who were obstructing Tetra Pak. Since her accession, Indira Gandhi had begun to promote her son Sanjay as an informal crown prince. Just like Ruben wanted to build a dynasty, albeit a political one. With the mother’s behavior, this situation led to Sanjay Gandhi obtaining a strong unofficial position of power. Kurien had drawn the right conclusions but felt ashamed in front of Erik Torudd. He simply did not want Torudd to see how corrupt the Indian administration was and how developed nepotism was in political India. He kept quiet."