Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  2. 2. KARNATAKA MILK FEDRATION EXECUTIVE SUMMARYINTRODUCTION Karnataka milk federation was setup in 1974 on the AMUL pattern it isthe third largest co-operative federation in India and first in south India. Thereare 17 unions in Karnataka. The project is conducted to know the “distribution effectiveness inHubli-Dharwad for K.M.F” in Dharwad. As present market is highlycompetitive, if one not reaches to ultimate customer other reaches and grabsthe opportunity. So an effort made by the company like manufacturing,promotion etc. are gets wasted. So it becomes important to reach ultimatecustomer at right time and right place, by knowing the requirement of themarket. In 1960’s & 70’s the product dominated the market, but presently thescenario has changed because of the competition (man players in market).Secondly the customer has many choices to choose a single product,immediately he/she shifts to the other product. After the liberalization many organizations entered the new markets orexpanding business into new areas and they have set up the plants in differentregions in the country. Hence it has become vital important to local player tocompete with them in quality, pricing, distribution etc. under such conditionplays very important to grab even small of the small opportunities.It becomes important to update to the market requirement to compete incompetitive world. So to know the market requirement we should have properinformation from the market. So I selected this project, which can serve thespecified information, which could help to the organization to improve thedistribution channel effectively in the market. So to serve better from theexisting one
  3. 3. KARNATAKA MILK FEDRATIONProject title “A Study on Distribution Effectiveness in Hubli & Dharwad For K.M.F”OBJECTIVES & AIMS: 1. To study the organization overview. 2. The study has been understand to find out the distribution channel about K.M.F organization. 3. To know the expectations of the agents, dealers from the organization. 4. To find out the role of the organization in promotion of the product. 5. To determine the satisfaction level of agents and dealers 6. To determine the effectiveness of the distribution channel. 7. To know the reason for non-satisfaction of the agents and dealers . 8. To know the problem faced by agents and dealers.
  4. 4. KARNATAKA MILK FEDRATION METHDOLOGYSampling and data collection planning From the required data collected from the retailers and agents by wayof questionnaires and personal interview, on the basis of collected data can beanalyzed and based on this analysis, conclusion and recommendations wasformulated.Research Approach: Survey MethodSampling Process: The process of drawing a sample from a large number ofagents and dealers is called samplingThe sampling process is broadly divided into three categories, they are 1. Sampling unit 2. Sampling size 3. Sampling techniqueSampling Unit: Sampling unit for study is conducted on distributioneffectiveness on Nandini Milk and other products for agents and dealers fromthe various part of the Hubli And Dharwad.Sampling size: The sampling size consist the 100 agents ,dealers for K.M.Fproducts in various parts of Hubli and Dharwad.Sampling technique:  convenience  Non Probability.
  5. 5. KARNATAKA MILK FEDRATIONSource of Data collection 1. Primary data 2. Secondary data.Primary data is collected through survey method i.e. by preparingquestionnaire and interviewing persons directly and by interacting with themarketing manager, dealers Retailers and other staff members who all areinvolved in distribution network.Questionnaire will adapt. 1. Open-ended question. 2. Multiple questions 3. Dichotomous questionsSecondary data, which is secondary in nature i.e. already, collectedinformation. This secondary data is collected through- • Company broachers • Books • Magazines • Internet
  6. 6. KARNATAKA MILK FEDRATION Analysis In this section study is focused on the analysis of primary data carried.Primary data was extracted from the survey on the “A study on Distributioneffectiveness in Hubli & Dharwad for K.M.F”. The sampling size of thesurvey is 100. In this survey parameter like commission, problems of agentsand expectations of agents and dealers expectations from the organization,distribution effectiveness, delivery timing and satisfaction levels of dealersand agents are analyzed.The collected data from the survey which is formulated in table and graphicalmanner .which is help for analyzing the data. And also help to provide base forgiving suggestions & recommendations.The tool used for analysis is MS-EXCEL. The statuses of the parameters wererepresented in the form of tables and pie charts.
  7. 7. KARNATAKA MILK FEDRATION CONCLUSION Clearly Nandini milk is a long way to go before it becomes a majorplayer in south India in the perishable goods like Nandini milk and otherproducts. Its Brand image is the cutting edge to its marketing strategy. K.M.Fhas its brand image from 30 years. The only thing K.M.F needs to developstrong promotional activities which concentrating more in satisfaction of theagents and retailers and also concentrate on rural market and housewives,which help to improving sales. While conducting a survey I came to know about many agents andretailers are proffered Nandini Brand milk only.If the organization will give more commission and other promotional activitieslike advertisement material boards and paint to shop and continues meet toagents and retailers definitely it will become more market share in theKarnataka.
  8. 8. KARNATAKA MILK FEDRATION FINDINGS IN RESEARCH The market potential has immense significance in the field ofmarketing, market can not ignore the market opportunities or the market to beused that are prevailing and going to occur in the market, this is becausetoday’s market is basically competition oriented to out perform other andcapture large market shareAs per the survey it clears the all the agents and retailers are getting thecomplaints of Nandini milk productsAs per the survey I came to know that: As considering Nandini milk  Nandini stands for first in selling the milk.  Toned milk is high selling milk in K.M.F- Dharwad.  By conducting the survey I came to know about that Nandini toned milk and standard are high selling goods.  Field staff are not visiting to the agents and retailers to get their feedbacks.  Perishability of Nandini milk is very highy compared to other brand of milk.  Most of the agents are part timers  No credit or extension of time for cash payment.
  9. 9. KARNATAKA MILK FEDRATION RECOMMENDATIONS For any organization to survive in this competitive market thecompany should adopt a distribution channel which will help not only theorganization but also its agents and retailers. There fore the following points should be consider and adopt by theorganization in order to create his good will, brand image and profit.  The company increases margin for agents and retailers. They will motivate to sell high volume of Nandini milk and its products. This can be done by having some other offers, gifts etc.  The marketing filed officers will meet regularly and motivate to sell the products.  The main mediator of the organization is the agent and retailers they know the customer behavior and preference while purchasing the milk so they can easily find out the problem of the product. So continues contact with the agents will give good feedback from the agent  68% of the agents are facing the exchange of damaged milk so improve the packaging of the product.  The problem of milk spoilage in the evening that has to be solved.  Milk availability throughout the day is totally not found this has to be brought in practice.
  10. 10. KARNATAKA MILK FEDRATION LIMITATIONS OF THE PROJECTThough the project was very structured one, it had following limitations 1. The area into consideration was limited for the study of the project, as the consider area and the facts collected, cannot be compared at large to entire Karnataka. 2. Ahe project required analysis of different areas. With the limitation of time was very difficult to carry out the entire thing in full depth. 3. Analysis of the study is based on the assumption that information collected from the survey which is 100 sample 4. The period of the project is limited for 2 months
  12. 12. KARNATAKA MILK FEDRATION History of MilkAnimal milk was first used as beverage at the beginning of animaldomestication. Goats and sheep were domesticated in the Middle East in 9000BC. Goats and sheep were one of the first animals to be domesticated. Aroundthe year 7000 BC, cattle were being herded in parts of Africa and Turkey.Milk was also consumed in the British Isles during the Neolithic period. Dairyproducts were first made in the Roman Empire around 100 BC. The use ofcheese and butter spread in Europe, parts of Asia and parts of Africa. Cattlewere then introduced to European colonies after the Age of exploration.BackgroundMilk is a nutritive beverage obtained from various animals and consumed byhumans. Most milk is obtained from dairy cows, although milk from goats,water buffalo, and reindeer is also used in various parts Of the world. In theUnited States, and in many industrialized countries, raw cows milk isprocessed before it is consumed. During processing the fat content Of the milkis adjusted, various vitamins are added, and potentially harmful bacteria arekilled. In addition to being consumed as a beverage, milk is also used to makebutter, cream, yogurt, cheese, and a variety Of other products.HistoryCattle were first brought to the United States in the 1600s by some Of theearliest colonists. Prior to the American Revolution most of the dairy productswere consumed on the farm where they were produced. By about 1790,population centers such as Boston, New York, and Philadelphia had grownsufficiently to become an attractive market for larger-scale dairy operations.To meet the increased demand, farmers began importing breeds of cattle thatwere better suited for milk production. The first Holstein-Friedens wereimported in 1795, the first Airsides in 1822, and the first Guernsey’s in 1830.With the development of the dairy industry in the United States, a variety ofmachines for processing milk were also developed. In 1856, Gail Borden
  13. 13. KARNATAKA MILK FEDRATIONpatented a method for making condensed milk by heating it in a partialvacuum. Not only did his method remove much of the water so the milk couldbe stored in a smaller volume, but it also protected the milk from germs in theair. Borden opened a condensed milk plant and cannery in Wassail, NewYork, in 1861. During the Civil War, his condensed milk was used by Uniontroops and its popularity spread.In 1863, Louis Pasteur of France developed a method of heating wine to killthe microorganisms that cause wine to turn into vinegar. Later, this method ofkilling harmful bacteria was adapted to a number of food products and becameknown as pasteurization. The first milk processing plant in the United States toinstall pasteurizing equipment was the Sheffield Farms Dairy in Bloomfield,New Jersey, which imported a German-made pasteurizer in 1891. Many dairyoperators opposed pasteurization as an unnecessary expense, and it wasntuntil 1908 that Chicago became the first major city to require pasteurizedmilk. New York and Philadelphia followed in 1914, and by 1917 most majorcities had enacted laws requiring that all milk be pasteurized.One of the first glass milk bottles was patented in 1884 by Dr. HenryThatcher, after seeing a milkman making deliveries from an open bucket intowhich a childs filthy rag doll had accidentally fallen. By 1889, his ThatchersCommon Sense Milk Jar had become an industry standard. It was sealed witha waxed paper disc that was pressed into a groove inside the bottles neck. Themilk bottle, and the regular morning arrival of the milkman, remained a part ofAmerican life until the 1950s, when waxed paper cartons of milk beganappearing in markets.In 1990, the annual production of milk in the United States was about 148billion lb (67.5 billion kg). This is equivalent to about 17.2 billion U.S. gallons(65.1 billion liters). About 37% of this was consumed as fluid milk and cream,about 32% was converted into various cheeses, about 17% was made intobutter, and about 8% was used to make ice cream and other frozen desserts.The remainder was sold as dry milk, canned milk, and other milk products.
  15. 15. KARNATAKA MILK FEDRATION India: Worlds Largest Milk ProducerIndia has become the worlds No. 1 milk producing country, with output in1999-200 (marketing year ending March 2000) forecasted at 78 milliontonnes. United States, where the milk production is anticipated to grow onlymarginally at 71 million tonnes, occupied the top slot till 1997. In the year1997, Indias milk production was on par with the U.S. at 71 million tonnes.The world milk production in 1998 at 557 million tonnes would continue thesteady progress in recent years (see Table 1). Furthermore, the annual rate ofgrowth in milk production in India is between 5-6 per cent, against the worldsat 1 per cent. The steep rise in the growth pattern has been attributed to asustained expansion in domestic demand, although per capita consumption ismodest - at 70 kg of milk equivalent.Worlds Top Milk Producers. 1998 1997 Countries 1996 India 74 71 68 United States 71 71 70 Russian Federation 33 34 36 Pakistan 22 21 20 Brazil 22 21 19 Ukraine 14 15 16 Poland 12 12 11 New Zealand 12 11 10 Australia 10 9 9 EC 125 125 125 World (includes 557 549 542 others)
  17. 17. KARNATAKA MILK FEDRATION Dr. Verghese Kurien Born on 26th November 1921Dr.Kurien graduated with Physics from Loyola College, Madras in 1940 andthen did B.E.(Mech) from the Madras University. He was very good at cricket,tennis, and boxing, and represented his college at state level. After passing outof the University, he joined the Tata Steel Technical Institute, Jamshedpurfrom where he graduated in 1946 Instead of taking the charted course of managerial career atJamshedpur, Dr.Kurien competed and qualified at the all India level selectionfor specialized studies in USA under government scholarship and passed theMaster of Science in Mechanical Engineering from the Michigan StateUniversity with distinction. When he came back to India, he was posted as a Dairy Engineer at thegovernment creamery, Anand, in May 1949. Around the same time, the infantcooperative dairy, Kaira District Cooperative Milk Producers Union Limited(KDCMPUL), -- now famous as AMUL -- was fighting a battle with thePolson Dairy which was privately owned. Young Kurien, fed up with being atthe government creamery which held no challenge, volunteered to help ShriTribhuvandas Patel, the then Chairman of KDCMPUL, to set up a processingplant, which marked the birth of AMUL. The rest is history.
  18. 18. KARNATAKA MILK FEDRATION Dr. Kurien is a manager and institutional builder par excellence. He hasbuilt dozens of institutions including the Institute of Rural Management,Anand of which he is the founder Chairman. He is also the founder Chairmanof the National Dairy Development Board (NDDB) which designed andimplemented the worlds largest dairy development programme - theOperation Flood. Dr.Kurien may rightly be called the architect of Indiasmodern dairy industry and the father of White Revolution ushered in by theAnand-pattern dairy cooperatives established under the Operation Flood. Dr.Kurien in his impressive career spanning over almost five decadeshas been honoured by several national and international organisations. He hasbeen conferred honorary doctorate degrees by several universities in India andAbroad. He has been decorated with the Padmashri (1965) Padmabhushan(1966), Krishi Ratna Award (1986) and Padma Vibhushan (1999) by thePresident of India. He has won many awards including the prestigious RamonMagsaysay Award for Community Leadership (1963), the Wateler Peace PrizeAward of Carnegie Foundation (1986), the World Food Prize Award (1989)and the International Person of the Year Award (1993) by the World DairyExpo, Madison, Wisconsin, USA and "Ordre du Merite Agricole" by theGovernment of France (in March 1997).Some of the other major awards he has won are :- • Regional Award 2000 from the Asian Productivity Organization, Japan • The first Rochdale Pioneers Prize by the international Co-operative Alliance (ICA), Seoul, Korea 2001
  19. 19. KARNATAKA MILK FEDRATION• Dr. Paulos Mar Gregorious Award 1999, New Delhi• The Economic Times Lifetime Achievement Award for the Corporate Excellence, Mumbai 2001• Lifetime Achievement Award for Translating Excellence in Corporate Governance into Reality, from the Institute of Company Secretaries of India, New Delhi (November 2001)• Lifetime Achievement Award for Social Service for the Tenth Red & White awards, New Delhi (January 2002)• Yashwantrao Chavan Natioanl Award for National Integration, Democratic Values, Social and Economic Development for the year 2001. (Mumbai)• "Lokmanya Tilak Award" by the Lokmanya Tilak Smarak Trust, Pune (August 2002)• "Lifetime Achievement Award" by the Bombay Management Association, Mumbai (Jan. 2003)• "Rotary Lifetime Achievement Award" by the Rotary Club of Palghat East (Feb. 2003) I Too Had a Dream
  20. 20. KARNATAKA MILK FEDRATIONI Too Had a DreamCategory: Non-FictionAuthor: Dr Verghese Kurien as told toGouri SalviPublisher: Roli Books Architect of Operation Flood, the largest dairy developmentprogramme in the world, Dr Verghese Kurien has enabled India to become thelargest milk producer in the world. A man with a rare vision, Dr Kurien hasdevoted a lifetime to realising his dream – empowering the farmers of India.He has engineered the milk cooperative movement in India.It was a sheer quirk of fate that landed him in Anand where a small group offarmers were forming a cooperative, Kaira District Cooperative MilkProducers’ Union Limited (better known as Amul), to sell their milk. Intriguedby the integrity and commitment of their leader Tribhuvandas Patel, Dr Kurienjoined them. Since then there has been no looking back. The Anand pattern ofcooperatives were so successful that, at the request of the Government of
  21. 21. KARNATAKA MILK FEDRATIONIndia, he set up the National Dairy Development Board to replicate it acrossIndia. He also established the Gujarat Cooperative Milk Marketing Federationto market its products. In these memoirs, Dr Verghese Kurien, popularly known as thefather of the white revolution, recounts, with customary candour, the story ofhis life and how he shaped the dairy industry. Profoundly inspiring, thesememoirs help us comprehend the magnitude of his contributions and hismultifaceted personality. " I have often claimed that I have had but one good idea in my life:true development is the development of women and men. This idea took sucha hold of me that I remained in this small, sleepy town of Anand for over fiftyyears as an employee of farmers. I was never able to give this up for whatmany call "a better life". These years have, without an iota of doubt, been themost rewarding years of my life. Over the years I have spoken ceaselessly ofthis idea, hoping to enthuse young women and men to adopt my passion astheirs. I have been fortunate that there have been many who took up thechallenge."
  22. 22. KARNATAKA MILK FEDRATION NATIONAL DAIRY DEVELOPMENT BOARD About NDDB The National Dairy Development Board was created to promote,finance and support producer-owned and controlled organizations. NDDBsprogrammes and activities seek to strengthen farmer cooperatives and supportnational policies that are favourable to the growth of such institutions.Fundamental to NDDBs efforts are cooperative principles and the AnandPattern of Cooperation.
  23. 23. KARNATAKA MILK FEDRATIONPHILOSPHYCooperation is the preferred form of enterprise, giving people control over theresources they create through democratic self-governance.Self-reliance is attained when people work together, have a financial stake,and both enjoy the autonomy and accept the accountability for building andmanaging their own institutionsProgressive evolution of the society is possible only when development isdirected by those whom it seeks to benefit.All beneficiaries, particularly women and the less privileged must be involvedin cooperative management and decision makingTechnological innovation and the constant search for better ways to achieveour objectives is the best way to retain our leading position in a dynamicmarketWhile our methods change to reflect changing conditions, our purpose andvalues must remain constant.CONSTITUTIONThe National Dairy Development Board has been constituted as a bodycorporate and declared an institution of national importance by an Act ofIndias Parliament.The National Dairy Development Board -- initially registered as a societyunder the Societies Act 1860 -- was merged with the erstwhile Indian DairyCorporation, a company formed and registered under the Companies Act
  24. 24. KARNATAKA MILK FEDRATION1956, by an Act of Indias Parliament - the NDDB Act 1987 (37 of 1987),with effect from October 12, 1987. The new body corporate was declared aninstitution of national importance by the Act.The general superintendence, direction, control and management of NDDBsaffairs and business vests with the Board of DirectorsPERSPECTIVE 2010 PLANThe Perspective 2010 plan of the Dairy Board maps the future of dairying inIndia, setting realistic goals for Strengthening Cooperative Business,Production Enhancement, Assuring Quality, and creating a Information andDevelopment Research. The plan was realized with the successful completionof the Operation Flood Programme and has been developed by the State MilkMarketing Federations and the Milk Producers Cooperative Unions inconsultations with the Dairy Board. The Perspective 2010 goals and strategiesto meet them have been drawn by its actual implementers - Federation andUnions and supported by NDDB.DAIRY COOPERATIVESDairy Cooperatives account for the major share of processed liquid milkmarketed in the country. Milk is processed and marketed by 170 MilkProducers Cooperative Unions, which federate into 15 State Cooperative MilkMarketing Federations.
  25. 25. KARNATAKA MILK FEDRATIONThe Dairy Boards programmes and activities seek to strengthen thefunctioning of Dairy Cooperatives, as producer-owned and controlledorganizations. NDDB supports the development of dairy cooperatives byproviding them financial assistance and technical expertise, ensuring a betterfuture for Indias farmers.Over the years, brands created by cooperatives have become synonymous withquality and value. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab),Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul(Kolhapur) are among those that have earned customer confidence.HEAD OFFICENational Dairy Development BoardP.B. No. 40Anand - 388 001GujaratINDIATelephone:91-2692-260148/260149/260159/260160Fax:91-2692-260159/260165
  27. 27. KARNATAKA MILK FEDRATION ABOUT KMFKarnataka Cooperative Milk Producers Federation Limited (KMF) isthe Apex Body in Karnataka representing Dairy Farmers Co-operatives. It isthe third largest dairy co-operative amongst the dairy cooperatives in thecountry. In South India it stands first in terms of procurement as well assales. One of the core functions of the Federation is marketing of Milk andMilk Products. The Brand is the household name for Pure andFresh milk and milk products.
  28. 28. KARNATAKA MILK FEDRATIONKMF has 13 Milk Unions throughout the State, which procure milk fromPrimary Dairy Cooperative Societies (DCS) and distribute milk to theconsumers in various Towns/Cities/Rural markets in Karnataka.The first ever World Bank funded Dairy Development Program in the countrystarted in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives startedfunctioning in Karnataka from 1974-75 with the financial assistance fromWorld Bank, Operation Flood II & III. The dairy co-operatives wereestablished under the ANAND pattern in a three tier structure with the VillageLevel Dairy Co-operatives forming the base level, the District Level MilkUnions at the middle level to take care of the procurement, processing andmarketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level.Coordination of activities among the Unions and developing market for Milkand Milk products is the responsibility of KMF. Marketing Milk in therespective jurisdiction is organized by the respective Milk Unions. TheFederation monitors Surplus/deficit of liquid milk among the member MilkUnions. While the marketing of all the Milk Products is organized by KMF,both within and outside the State, all the Milk and Milk products are soldunder a common brand name NANDINI.
  29. 29. KARNATAKA MILK FEDRATIONTHE GROWTH PROCESS The growth over the years and activities undertaken by KMF is summarized briefly hereunder: 1976-77 2004-2005 Dairy Co-operatives Nose 416 9670 Membership Nos 37000 1743664 Milk Procurement Kgs/day 50000 2699785 Milk Sales Lts/day 95050 1694116 Cattle Feed Consumed Kgs/DCS 220 1557 Daily Payment to Farmers Rs.Lakhs 250 242 Turnover Rs.Crores 1500.00World Bank Study – ObservationsThe World Bank, in its study on the effect of Co-operative dairying inKarnataka, has pointed out that : • The villages with Dairy Co-operative Societies are much better off than those without. • The families with dairy cattle are economically better than those without dairy cattle. • Women who had no control on the household income have better control in terms of Milk Money . • A single commodity “MILK” has acted as a catalyst in the change in the Socio-Economic impact of the rural economy. • There is a positive impact on those at the lower end of the economic ladder both in terms of landholding and caste.
  30. 30. KARNATAKA MILK FEDRATION K.M.F PERSPECTIVE PLAN 2010After the closure of OF-III project. Government of Karnataka and NDDBsigned an MOU during February 2000, for further strengthening the DairyDevelopment Activities in Karnataka with an outlay of Rs.250 Crores.Consequent to the announcement of new lending terms and conditions byNDDB through an evolution of an action plan - Perspective 2010 to enablethe dairy cooperatives to face the challenges of the increased demand formilk and milk products by focusing efforts in the four major thrust areas ofStrengthening the Cooperatives. Enhancing Productivity, Managing Qualityand building a National Information Network, plans are underimplementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur andGulbarga that were having accumulated losses were included forrehabilitation programme under the Centrally Sponsored Scheme"Assistance to Cooperatives" which is also under implementation. FUTURE VISIONTo consolidate the gains of Dairying achieved in the state of Karnataka andwith a view of to efficiently chill, process and market ever developing andincreasing milk procurement with an utmost emphasis on the Quality and inthe process conserve the socio-economic interests of rural milk producers, theGovt. of Karnataka through KMF has proposed to undertake several projectswith financial and technical support of NDDB for which an MOU was signedbetween Govt. of Karnataka and NDDB on 10th Nov. 2004.UNITS OF KMF
  31. 31. KARNATAKA MILK FEDRATIONKMF has the following Units functioning directly under its control: • Mother Dairy, Yelahanka,Bangalore. • Nandini Milk Products, KMF Complex, Bangalore. • Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan • Nandini Sperm Station (formerly known as Bull Breeding Farm & Frozen Semen Bank) at Hessaraghatta • Pouch Film Plant at Munnekolalu, Marathhalli • Central Training Institute at KMF Complex, Bangalore. • Quality Control Lab at KMF Complex, Bangalore.THE KARNATAKA MILK FEDRATION CONSISIT OFUNITS NODairies 17Liquid nitrogen silos 6Product plant 3Training center 3Sperm station 1Cattle feed plant 4Pouch film plant 1
  32. 32. KARNATAKA MILK FEDRATION MILK - ESSENTIAL FOR NOURISHMENTMilk is natures ideal food for infants and growing children in our country,except in rare cases of lactose intolerance. The important place milkoccupies in our diet has been recognized since Vedic times, and allmodern research has only supported and reinforced this view. In fact,milk is now considered not only desirable but essential from the time thechild is born. The baby is recommended to be breast-fed until it isweaned and thereafter given cow/buffalo/goat/sheep or similardomesticated mammals milk till he or she reaches 12 years of age.WHAT IS MILK :
  33. 33. KARNATAKA MILK FEDRATIONMilk may be defined as the whole, fresh, clean, lacteal secretion obtainedby the complete milking of one or more healthy milch animals, excludingthat obtained within 15 days before or 5 days after calving or suchperiods as may be necessary to render the milk practically colostrums-free and containing the minimum prescribed percentages of milk fat andmilk-solids-not-fat. In India,the term milk, when unqualified, refers tocow or buffalo milk, or a combination of the two.CHEMICAL COMPOSITION OF MILK (%) :Sl.No. Species Water Fat Protein Lactose Ash1 Cow 86.6 4.6 3.4 4.9 0.72 Buffaloe 84.2 6.6 3.9 5.2 0.8
  35. 35. KARNATAKA MILK FEDRATION PRODUCTSTONED MILK Karnatakas most favourite milk. Nandini Toned Fresh and Pure milk containing 3.0% fat and 8.5% SNF. Available in 500ml and 1ltr packs. Available in 500ml and 1ltr packs
  36. 36. KARNATAKA MILK FEDRATIONHOMOGENISED TONED MILK Nandini Homogenised Milk is pure milk which is homogenised and pasteurized. Consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500ml.packs.FULL CREAM MILK Full Cream milk. Containing 6% Fat and 9 % SNF.A rich, creamier and tastier milk, Ideal for preparing home-made sweets & savouries. Available in 500ml., and 1ltr packsGOOD LIFE MILK
  37. 37. KARNATAKA MILK FEDRATION Cows pure milk, UHT processed, bacteria free in a tamper- proof tetra-fino pack which keeps this milk fresh for 60 days without refrigeration until opened. Available in 500ml Fino and in 200ml Bricks at premium stores across the state.SMART Cows pure milk, homogenized, double toned UHT processed milk bacteria free in a tamper proof tetra fino pack which keep the milk fresh for 60days without refrigeration until opened. At present the milk is being directly home delivered on request. Available in 500ml pack.SLIM Cows pure milk, homogenized, Skimmed. UHT processed milk bacteria free in a tamper proof tetra-fino
  38. 38. KARNATAKA MILK FEDRATION pack which keep the milk fresh for 60 days without refrigeration until opened. Nandini Goodlife slim skimmed milk is 99.5% fat free. Available in 500ml Fino and in 200ml Bricks at premium stores across the state.BUTTER MILK Nandini spiced Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh green chillies, green coriander leaves, asafoetida and fresh ginger. Nandini spiced butter promotes health and easy digestion. It is available in 200 ml packs and is priced at most competitive rates, so that it is affordable to all sections of people.SHUBHAM
  39. 39. KARNATAKA MILK FEDRATION Buffalos milk, 100% pure pasteurized processed and packed hygienically. This milk has 5% fat and 9% SNF. Available in 500ml and 1ltr, packs.CURD Nandini Curd made from pure milk. Its thick and delicious. Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet.GHEE A taste of purity. Nandini Ghee, made from pure butter. It is fresh and pure with a delicious flavour. Hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperatures
  40. 40. KARNATAKA MILK FEDRATION Available in 200ml, 500ml, 1000ml sachets, 5lts tins and 15.0 kg tins.MYSORE PAK Fresh and tasty, Nandini Mysore Pak is made from quality Bengal Gram, Nandini Ghee and Sugar. Its a delicious way to relish a sweet moment. Available in 250gms, 500gms. PP container shrink packed to preserve freshness. Can be kept for 7 days. Advised to consume fresh to enjoy its excellent taste.GULAB JAMOON MIX Great way to those soft and juicy jamoon treats at home! Nandini Gulab Jamoon Mix is made from Nandini skimmed milk powder, maida, soji and Nandini Special Grade Ghee. Available in 100gms and 200gms standy pouch with a five layer foil lamination. Shelf life of 6 months.
  41. 41. KARNATAKA MILK FEDRATIONPEDA No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family. Store at room temperature approximately 7 days Available in 250gms pack containing 10 pieces each.PANEER Pure and tasty dishes with Nandini Paneer! A fresh, nutritive product made by coagulating pure milk, it is an excellent source of milk protein. Nandini paneer is ideal for vegetarian dishes such as mutter paneer, sag paneer and various other dishes. Refrigerated storage is preferable. Available in 200gms pack, specially packed in a five layer film and vacuum packed to preserve its quality. Bulk packings are also available.
  42. 42. KARNATAKA MILK FEDRATIONBUTTER Rich, smooth and delicious. Nandini Butter is made out of fresh pasturised cream. Rich taste, smooth texture and the rich purity of cows milk makes any preparation a delicious treat. Available in 100gms (salted), 200gms and 500gms cartons both salted and unsalted,FLAVOURED MILK Sterilised flavoured milk, a nutritious and healthy drink and an all-season wholesome drink available in five different flavours - pineapple, rose, badam, pista and natural orange. Apart from refreshing energy. Available in 200ml
  43. 43. KARNATAKA MILK FEDRATIONICE CREAM Nutritious, delicious creamy ice cream is manufactured at ISO 9002/HACCP certified Mother Dairy modern plant. The range includes Vanilla, Strawberry, Pineapple, Mango, Chocolate, Butter scotch, Kesar Pista, Orange & Mango Candies, Mango & Raspberry Dollies, Chocobar and Ball varieties Vanilla, Strawberry, Sundae. Available in 500ml and 1ltr packs.BADAM POWDER A delicious beverage with hot or cold milk. It can be used for kheer, kesaribath, desserts or ice cream. Its the goodness of Badam mixed with almond, edible starch, saffron, skimmed milk powder and cane sugar to give you the ideal Badam delight. Available in 200gms. PP boxes, cover shrink wrapped to offer better quality and also to prevent pilferage Shelf life of 6 months under room temperature.KHOVA
  44. 44. KARNATAKA MILK FEDRATION Khova is prepared out of fresh milk. It is an ideal base to prepare delicious sweets at home like peda, Gulab Jamoon, Kalakand, Burfi, Gajar Halwa and the like. Nandini Khova gives you a high nutritive value with large quantities of muscle building proteins, bone forming minerals and energy giving fat and lactose. To be kept under refrigeration Available in 200 gms vaccum packed in a special five layer pouch film Khova is also available in bulk pack for marriages and other functionsCHEESE Delicious Cheese, processed with utmost care to ensure the smooth and rich taste of pure cheese. Its highly nutritious an excellent source of milk proteins and a rich source of calcium. Need to be kept under refrigeration. Available in 100gms carton.MILK POWDER Enjoy the taste of pure milk! Skimmed milk powder made from pure milk, processed and packed hygienically.
  45. 45. KARNATAKA MILK FEDRATION Available in 50gms, 100gms, 200gms, 500gms,1kg & 25 kg pack.CASHEW BURFI Prepared using quality Cashew nuts, Khova and Ghee. It leaves a lingering Cashew flavour in your mouth. Available in 250 gm in a P.P.Box, shrink wrapped to preserve its freshness. Shelf life : 12 days.NANDINI BITE A unique sweet. Cocoa based. Nandini Bite is a three-in- one sweet prepared by using Mysorepak, Khova and dremed with Almond. Available in 25 gm Aluminium foil packing. Shelf life : 12 days.
  46. 46. KARNATAKA MILK FEDRATIONNANDINI BASAN LADOO It is a delicious indigenous product prepared from pure Ghee, Gramflour and sugar added with cashews. Available in 250 Gms pack containing 6 Pieces. Shelf life : 1 Month.NANDINI SET CURDS NANDINI SET CURD, thick and highly nutritive curd is made from 3% Toned Milk with added imported bacterial cultures, filled into 200gm and 400gm cups and allowed to set into curds. Imported bacterial cultures constitute curd forming bacteria of high genetic abilities and release antimicrobial substances into curd imparting disease resistance to consumers( probiotic characteristic). The curd apart
  47. 47. KARNATAKA MILK FEDRATIONfrom therapeutic in nature has very high shelf-life and can be keptfor 15 days in refrigerator without curds becoming sour.NANDINI SET CURD is competitively priced at Rs.7 per 200gm cupand at Rs.13 per 400gm cup.Shelf life : 15 days in refrigerator without curds becomingsour.
  48. 48. KARNATAKA MILK FEDRATIONORGANIZATION OVERVIEW Of DHARWAD MILK UNIONDHARWAD MILK UNIONDharwad Milk Union (DMU) came into existence on 3-3-1986DMU was established under co-operative act on 3-3-1986 at Dharwadand Gadag, Haveri, Uttar Canara, Dharwad comes under its operation.ESTABLISHMENT:
  49. 49. KARNATAKA MILK FEDRATION The Dharwad Milk Union is Co-operative society among the 13establishments, under KMF. The Dharwad Milk Union (DMU) is oneof the most modern plants in the country. It is located in the spacious 25acres of land, located in Lakamanahalli Industrial Aria, adjacent to theNational Highway-4. it is patterned the AMUL Milk Union Dairy,Anand, Gujarat.History : A group of experienced officers, appointed by the KarnatakaMilk Federation surveyed the whole of Dharwad districts (includes twonewly formed districts Gadag and Haveri) and Uttara Karnataka.Further they found out there as a need for a milk dairy. They traveledthe surrounding villages, educated the villages about milk and milkproducts and the benefits they would get from the milk dairy. Seeing the overwhelming response and untapped resources and thehuge market the Federation decided to setup the Milk Union in 1984,known as DHARWAD DISTRICT CO-OPERATIVE MILKPRODUCERS SOCIETIES UNION LIMITED.Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968,also came under the union. In 1989, the training center, which wascontrolled by KMF, came under Dharwad Milk Union.
  50. 50. KARNATAKA MILK FEDRATIONDMU was a Rs.7 crore project of which Government has Rs.2 crore ofshare capital and authorized capital of DMU is Rs.5 crore.DMU formed 551 milk producer’s co- operative societies in Dharwad,Gadag, Haveri and Uttar Kannada districts.The production capacity of DMU is 2 lakh liters per day and also hasthe capacity to produce 12 tones of milk powder, 10 tones of butter, 6tones of ghee per day.DMU is collecting 70 thousand liters of milk per day from its societiesand sells 60 thousand liters of milk per day and the remaining milk isused for producing milk products.Input required per day :* Milk procurement up to 70 thousand liters• 5 to 6 lakh liters of water• 10,000 units of electricity• 4 to 5 tones of coal• Generation in case of electricity failure and manpowerFunctions of DMU : * The main function of DMU is to procure milk from villagers andpay them the right price.• To educate the villagers about milk and its products.• To make ‘Nandini’ as a part of life.
  51. 51. KARNATAKA MILK FEDRATION• To provide good quality of cattle feed, fodder, veterinary aid seeds, etc.,to the villagers.• To see that the DCS’s are carrying out their activities properly and in an efficient manner.• To see that the milk is brought from DCS’s to the chilling centers in the prescribed time.• To look the accounts of the DCS’s supervise the purchase process and market the milk and milk products. Objectives of DMU :• Providing hygienic and good quality of milk to the consumers.• To build the economic strength of the milk producers in villagers.• To eliminate middlemen’s in the business so that the milk producers receive their appropriate share of bread.• To educate the villagers about the adulteration of milk and its harmful effect on the body.• To see that every citizen becomes healthy by consuming good quality of milk.• To make villagers self-viable and build self image.Process at DMU : The milk collected at DCS’s is brought to the center throughcarriers, trucks etc. The quality and quantity of milk bought is checkedat the reception center by a supervisor.
  52. 52. KARNATAKA MILK FEDRATION A sample of milk is taken and is tested in a laboratory for fatcontent, Solid Not Fat(SNF) acidity etc. As the milk is at room temperature it is to be brought down to 4 Cto 5 C. So that it may check the growth of bacteria. To ensure this milkis passed through a chilling chamber where the milk is chilled. Itstemperature is bought down and then the milk is stored in a tank calledas “ Ram Milk Tank “. From this tank the milk is pumped to a pasteurizing cell where themilk is heated up to 72 C and 15 seconds, so that all the bacteria andmicro-organisms may be killed and then the milk is simultaneouslycooled to 4 C to 5 C and is stored in a “ Pasteurized Milk Tank “. From here the milk is separated according to the requirement ofproduction of different types of milk and the remaining milk is used formanufacturing milk products.Departments of DMU :1. Purchasing2. Quality Control3. Production
  53. 53. KARNATAKA MILK FEDRATION 4. Procurement and Input ( P & I ) 5. Finished Goods and materials storage department ( FGS ) 6. Stores Department. 7. Sales and Marketing. 8. Accounts Department. 9. Finance. 10. Administration. 11. HRD. ORGANIZATION STRUCTURE PRESIDENT DIRECTOR DIRECTOR DIRECTOR DIRECTOR(GOVT) (GOVT) (NDDB) (SOCIETY) DIRECTOR (DCS)
  54. 54. KARNATAKA MILK FEDRATION MANAGING DIRECTOR PROCUREMENT MARKETING ADMN DEPT DEPT DEPT PRODUCT FINANCE PROCESS DEPT. DEPT TRANSPORT F.G.S. & M.I.S. STORES QUALITY ACCOUNT CONTROL & PURCHASE PROCUREMENT AND INPUT DEPARTMENT The union carries on procurement by setting up co-operative societiesat village level. Later milk is collected in the chilling centre. Milk collectedfrom the milk centre, is first tested. There is milk –testing equipments for thispurpose. Then a survey on availability of transportation facilities andproductive capacity of villages are conducted. If the marketable surplus ismore than 150 liters pre day, a society is formed. Further 10 promoters areselected from the village and are given the responsibilities of collecting the
  55. 55. KARNATAKA MILK FEDRATION capital for the society by selling shares. Procurement is done twice a day and payment is made on the basis of percentage of content and SNF in the milk. After this, milk is sent to Union else chilling center, whichever is near. At the chilling center, milk is chilled up to 4 degree Celsius. Later this chilled milk is sent to Union in Insulated Tankers for further processing. The main function of this department is to procure milk different areas throughout the year. The department also provides facilities that help in enhancing more productivity. The main function of p & I department is to organize, supervise and operate village dairy co-operative societies and to procure more milk from village societies. Other services provided are: • Veterinary services to keep up the good health of cattle through - Regular health camps - emergency services round the clock - first aid, vaccination, infertility camps, fodder • Artificial insemination facilities for improvements of cattle breed. • Facilitating Training programs regarding management of cattle • Supply of fodder to the cattle THE STRUCTURE OF P & I DEPARTMENT MANAGER (P & I) Procurement Wing Technical Input Wing Deputy Manager Deputy ManagerClerks Assistant manager Helpers Extension officer Assistant manager Clerks
  56. 56. KARNATAKA MILK FEDRATION PRODUCTION AND PROCESS DEPARTMENT The main objective of this department is to follow up productionschedule as per plan and to maintain close and co-ordinate relationship withother department and ensures to upgrade the technical efficiency ofproduction. Milk, as it is highly perishable product has to processedimmediately to avoid spoilage milk respect to its flavor, texture and taste
  57. 57. KARNATAKA MILK FEDRATION Production department is well equipped and has various types of highlysophisticated machines imported from Sweden and Denmark. Once the milk isreceived from p & I department, it is first weighed with the help of weighingbowl. Later, it is poured in dump tank. Sample testing is made throughlactometer reading and other tests. The fat and SNF content of each sample ofmilk is accessed the cow and buffalo’s milk are separately received and sent tothe production section separately through two different stainless steel pipes. Later, the raw milk is passed through plate chiller of variable capacitywhere it is cooled up to 4-5 degrees Celsius. This cooled raw material isfurther stored in a silo of 30,000 liters capacity.PURPOSE OF CHILING This is done to avoid the growth of micro organisms, which areresponsible for spoilage of milk and bitter taste. The milk, which is stored insilos, is pumped through pipeline to the balance tank, which helps to maintainthe steady speed flow of milk in the pasteurization machine. In, DMU, thereare 2 milk pasteurization machine and 1 Cream pasteurization machine.
  58. 58. KARNATAKA MILK FEDRATION PURPOSE OF PASTEURIZATION Pasteurization is a process where milk is heated to high temperature and cooled instantly, to destroy any microorganism. The pasteurized milk will stored in pasteurized milk silos and then sent to pre-packing section. Package is done in 500ml and stored in cold storage at 7 degree. PRODUCTION PRODUCTION PROCESS DCSFresh liquid milk Sample testing
  59. 59. KARNATAKA MILK FEDRATION Chilling Fat and SNF StoringPasteurizationHomogenization Storing Packing Dispatch PASTEURIZATION OF CREAM: The milk in bulk is taken to the cream separator. Here, the cream is separated. The cream is passed through cream pasteurization Unit. This cream is sent to Butter section. The milk with no fat is skimmed milk. This skim milk is pumped back to pasteurization Unit and heated to 72 using steam and chilled to 4 using chilled water and stored silos. This skimmed milk is sent to powder section. The pasteurize cream is mixed in portion to Pasteurized milk.
  60. 60. KARNATAKA MILK FEDRATIONCURDS: Raw milk is heated to 90 and allowed to cool to 30. Later culture isadded to it and packed; the curd is formed in the packet itself. It is stored andpacked in 200gms and 500gms.BUTTER: The cream , which is stored in cream refining tank, is taken to thechurning section where it is churned. Here butter fat and butter milk areseparated . The vacuum pump removes excess of moisture and butter comesout of continuous butter making machine (capacity-1500kgs/hour).Butter ispakd in 100, 200and 500gms and also in 10, 25 gms, these are stored in deepfreezer room with temperature -22 and if the order of salt butter they mix saltwater with cream and other process is same.GHEE: There are 2 Ghee Boiler of capacity 1500kgs/batch. A butter of 2.5 tons ismelted and is brought Ghee Boiler. Here it is heated to 116-117 degree Celsiusfor 15 minutes so that the residue is allowed to settle down and Ghee is passedsetting tank through clarifies. Later Ghee is allowed for cooling (at 30 to 40)and packed in Tin of liter, 500ml and 200ml pack and kept in the cold storage.PANEER:
  61. 61. KARNATAKA MILK FEDRATION If there is excess of milk, then, paneer is made. The milk is heated to 90 for15 to 20 minutes. Glacial acetic acid is added to milk, and then milk is strainedthrough fine muslin cloth. The solid portion is retained and put in water andthen it is put in chilled water and left over night. Later it is packed and storedin cold storage.MILK POWDER: When there is excess of milk. Milk powder is made the capacity of thepowder plant is 12tons. There are two sections-Evaporator and spray driverthrough which milk is converted to Milk powder. In Evaporator, milk is boiledfor 55 at high vacuum, Milk is concentrated to drier 40-45 of milk is solid,moisture is removed and the milk powder obtained consists of 4% moisture.PEDHA: Dharwad is famous for its delicious pedhas DMU has separate pedhasection. About 80 liters (depends upon the demand ) is heated continuously for3 hours till the milk is semi-solid, later sugar and other ingredients are addedand stirred continuously on low flame. Later it cooled and it is shaped in smallballs and packed.The milk produced here is differentiated by the content of FAT andSNF
  62. 62. KARNATAKA MILK FEDRATION TYPE FAT SNF Toned milk 3.1% 8.5% Standard Milk 4.5% 9% Subham Milk 6% 9% Full cream milk 5.1% 9% The below table gives a brief idea of the milk products, their fat SNF moisture content : PRODUCT FAT SNF MOISTURE Butter 83% 1% 16% Ghee 99.8% - 0.2% Paneer 20% 30% 50% PRODUCTION DEPARTMENT The production department has the following structure. MANAGER (DAIRY)DEPUTY OFFICE STAFFMANAGERASSISTANTMANAGER ASSISTANT ASSISTANTTECHNICALSENIOR (ACCOUNTS) (STORES)OFFICERSUPERVISOR CLERK TYPIST
  63. 63. KARNATAKA MILK FEDRATIONJUNIORSUPERVISORDAIRY DAIRY DAIRYOPERATORS TECHNICIAN WORKER QUALITY CONTROL DEPARTEMENT In DMU, at every stage, care is taken to ensure that the customer gets the product, which have a very high quality. Hence there is a separate department called Quality Department. Where the quality testing is done. There is a separate laboratory for this. Quality control is very essential as to maintain the freshness of the milk. All the containers, pipes and other equipments are washed with hot water before starting off with new production. There are many tests conducted here. The packed milk we get will have undergone 3 quality tests. First test is done on raw milk, which we get from chilling center. Next before standardization and the last test before packing. The other tests conducted are
  64. 64. KARNATAKA MILK FEDRATION ; TESTS REASON Temperature Should be below 5 degrees Clot on Boiling If mill curdles soon after boiling milk Acidity Test To test the extent of acidity Alcohol Test To check the heat stability of milk Lactometer To check the density of milk Fast test Percentage of fat determined SNF Test Percentage of SNF determined for pricing QUALITY CONTROL DEPARTEMENT STRUCTURE DEPUTY MANAGER ASSISTANT ASSISTANT MANAGER MANAGERQUALITY QUALITYASSISTANT ASSISTANTOFFICER OFFICER(CHEMICALS) (BACTERIOLOGY)
  66. 66. KARNATAKA MILK FEDRATIONFurther the Marketing Department has two sub-department  STORES  FINISHED GOODS STORE STORES DEPARTEMENT: The Stores Department in DMU follows the Cordex System (CodedControl System). A card is maintained for each item and a number is allotted.The card attached to each article consists of amount balance, date of issue,purchase etc. this is later recorded in separated ledger book. The inventoriesare of different kind ranging from mechanical, spares, packing items to animaldrugs, stationary and veterinary drugs. There are at least 4000 differentinventories.The department has the following services: • It tries to maintain maximum and minimum level of inventory so as to avoid blockage of capital and storage. • Ordinary and local available commodities are maintained at minimum possible level. • Items of urgent and not easily available are stored sufficiently for further demand.STORES DEPARTMENT
  67. 67. KARNATAKA MILK FEDRATION The structure of this department is as shown. STORES SUPERIDENT STORES ASSISTANT (FDS) STORES ASSISTANT (GR-II) HELPERS FINISHED GOODS STORES: This Department acts as an interface between production and Marketing Department. It is concerned with manatees of finishes goods connected records. It receives all the finished goods and issues the stock to marketing department as per indents. It ensures that the goods are maintained properly with respect to quality. Accounts are maintained and daily and daily and monthly report is submitted to the production. Marketing and Finance Departments. As the products as perishable First-In-First-Out method of inventory is followed. The FGS Department has the following Structure; ASSISTANT MANAGERMARKETING ACCOUNTASSISTANT ASSISTANT DAIRY WORKERS DAIRY OPERATOR
  68. 68. KARNATAKA MILK FEDRATION FINANCE DEPARTMENT This Department is responsible for keeping all the inward andoutward flow of money of union. It prepares budget every year and financialrules for receipts all payments are framed. The functions of these departmentsare; • To prepare monthly accounts (Receipts and payments account P&I account and Balance Sheet). • To prepare quarterly financial statement. • To prepare integrated business plan. • To prepare year ending financial statements.To get accounts audited from statutory books of accounts. DMU, Follows two types of auditing; 1. Pre-Audit System-done by Finance and Accounts Department every year. 2. Statutory System-Done by private charted accounts every year.
  69. 69. KARNATAKA MILK FEDRATION THE STRUCTURE OF FINANCE DEPARTMENT IS AS SHOWNDEPUTY MANAGERASSITNANT MANAGERASSISTANT ACCOUNT OFFICERSASSISTANT ACCOUNT PURCHASE DEPARTMENT It is a sub-department, which comes under Finance Department. The main work of this department is to purchase various materials required by different department. After ascertaining the stock position by stores department and indent is sent by different department duly approved by the Managing Director. This department act to purchase materials. It also maintains records of all the suppliers calls for Tenders, quotation etc. Quotations with lowest rate are sanctioned. Purchase up to 50,000 can be made by Purchase Department. If the purchase amount is more than 50,000, then the approval of Managing Director. THE STRUCTURE OF PURCHASE DEPARTMENT IS AS FOLLOWS PUCRCHASE OFFICER PURCHASE ASSISTANT SUPERDIENT PURCHASE OFFICER HELPERS
  70. 70. KARNATAKA MILK FEDRATION ADMINISTRATION DEPARTMENT The Administration Department controls the overall functioning of the organization. The organization consists of the following three levels. • Managerial cadre includes Managing Director, Deputy Manager, and Assistance Manager. • Supervisory level included technical officers and supervisors. • Worker level includes labors helpers. Structure of Administration Department DEPUTY MANGERASSISTANT MANAGER (BOARD) ASSISTANT MANGER (PERSONNEL0 ADMINISTRATION SUPERINTENDENT ADMINISTRATIONSSU PERINTENDENT ADMINISTRATION TIME KEEPER ASSISTANT CANTEEN SECURITY DEPARTMENT
  72. 72. KARNATAKA MILK FEDRATION The Administration Department also handles Canteen, Security andTime Keeping Machine. CANTEENThere is a canteen in the premises itself. The employees are provided lunch, tea etc.,at reasonable rates. The canteen is handled by the canteen-In charge. TIME KEEPERThis department records the working hours of the employees. Time machine showsthe entry time and exit time of each employee. The workers divided into differentshifts control the working of the department. Each employee is given a punch card,whenever an employee enters the premise he has to punch the card in the timemachine and before living the premise he has to do the same. Based on thisattendance, canteen bills are charged, wages are fixed and deduction are made. SECURITY DEPARMENT Dharwad milk union occupies 25 acres of land the whole premise is beenguarded by the security personnel. The security people work in three shifts. All thevehicles are checked before entering the premise. The department is also maintainsseparate registers like store-in register, attendance register etc.
  73. 73. KARNATAKA MILK FEDRATION PRODUCT PROFILE OF K.M.F – DHARWADK.M.F, Dharwad produces the following milk and milk products MILK  Toned Milk  Standard Milk  Shubham Milk  Full cream Milk MILK PRODUCTS  Butter  Ghee  Pedha  Curds  Lassi  Panneer  Milk powder
  75. 75. KARNATAKA MILK FEDRATION Competitor profileMajor competitor in Karnataka for K.M.FHATSUN (Arokya)Welcome to the Hatsun world, India’s largest private dairy. From a modestice cream manufacturer to one of the leading names in India’s dairy sector injust a span of three decades,The company was in-corporated on 4th march 1986 under the name and styleof hatsun foods private ltd. The name of the company was changed hatsunmilk foods private ltd and subsequently converted in to a public ltd companyin the year 1995. the present name of the company was adopted in the year1998 .The company was found and promoted by Mr. R.G Chandramogan and hisassociates.R.G ChandramoganInitially started ice cream business in early in 1970 and later in the year 1986formed the business into a private ltd co,which was later converted into apublic ltd co .The company is the leading private dairy industry in India.the co enjoysmarket share of 60%&35%for its icecreams in tamilnadu & south Indiarespectively .the market share for its milk & milk based product is 45% in theentire south India the co plant are situated in red hills (Chennai),salem andkancheepuram in tamilnadu and belgum in Karnataka .
  76. 76. KARNATAKA MILK FEDRATIONThe co is the first in south India to introduce homogenized milk,which isconsumed all over the world .the co was proved to introduced 100%pathogenic bacteria removed milk, the first of its kind in India bacteriaremoved milk is produced by bacteria clarification process using germantechnology which physically removes 100% pathogenic bacteria from milkthis technology helps in preserving the natural flavor and taste of from freshmilk. It started as a creamy dream in 1970:Arun icecream, the rich, delicious brandthat has captured the heart of millions of icecream lovers. With over 70delightful varieties it is the No.1 selling ice cream in south india . Arun icecreams is manufacture at the most modern plant its kind in Chennai. From theingredients, to the packing and the distribution stringent quality control ismaintained at every stage which has made Arun ice creams the first ice creambrand in India to win the 9001 certification for quality and world classmanufacturing facilities. Arun ice cream reaches the customer through thelargest network of a exclusive parlours in India.SalesThe combined sales of arokya and komatha is 7,5000 liters a day. And hastsunis fast nearing its objective 1 million liters a day.Hastun quest for quality starts at procurement, two times a day, 365 days ofthe year at over a thousands collection centers, from more than a hundredthousand farmers hastsun sources its milk with on ever watchful eye, alwayskeen on quality. Its an enthusiastic and busting activity when milk its takesfirst step in its journey to the consumers homes.
  79. 79. KARNATAKA MILK FEDRATION SWOT ANALYSISSTRENGTH  Nandini enjoys good image.  Wide distribution network.  Milk processed in local milk.  It enjoys highest share in the packed milk segment.WEAKNESS  Recurrent quality problem.  Lowest paying brand (commission less).  Low milk predominant.  Poor retail serving & consumer grievance handling.  Inadequate sales promotional activity & bad smell.OPPORTUNITY  Scope to develop new area.  Availability of buffalo milk-improve market quality.  Predominant of loose milk segment- divide appropriate strategies.  Market penetration.THREATS  No entry barriers for private players.  Low level of consumer awareness.  Persuade benefits of competing brand.
  80. 80. KARNATAKA MILK FEDRATIONProjectOverview
  81. 81. KARNATAKA MILK FEDRATION INTRODUCTION OF PROJECTIntroduction This project is carried out in, Karnataka co-operative Milk FederationHubli. They work for the purpose of giving a quality and fresh milk forcustomer without adding any chemicals. Direct formers (cow) to customer.With a fresh a good quality milk.The study has been under taken to find out the effectiveness of distributionchannel about K.M.F Dharwad Milk and other products.The area of study is limited to  Hubli  DharwadThe study has been doe to ensure that this would help and organization toincrease their sales and ultimately profits.SCOPE OF THE PROJECT The project was exclusively conducted for dealers and agents forconsumer durables. The time frame of this project lasted about 2 months.
  82. 82. KARNATAKA MILK FEDRATIONProject title “A Study on Distribution Effectiveness in Hubli & Dharwad For K.M.F”AIMS & OBJECTIVES: 1. To study the organization overview. 2. The study has been understood to find out the distribution channel about K.M.F organization. 3. To know the expectations of the agents, dealers from the organization. 4. To find out the role of the organization in promotion of the product. 5. To determine the satisfaction level of agents and dealers organization 6. To determine the effectiveness of the distribution channel. 7. To know the reason for non satisfaction of the agents. 8. To know the problem faced by agents or dealers.
  83. 83. KARNATAKA MILK FEDRATION METHODOLOGY: In this project the questionnaire was designed for dealers and agents ofK.M.F –Dharwad in Hubli and Dharwad.In this project the questionnaire was administrated personally.Questionnaire adapted was 1. Open-ended question. 2. Multiple questions 3. Dichotomous questionsData collection Instrument In this project personnel interview and questionnaire was adapted forcollecting the data. 1. Primary data 2. Secondary data.Primary data is collected through survey method i.e. by preparingquestionnaire and interviewing persons directly and by interacting with themarketing manager, dealers, agents and other staff members who all areinvolved in distribution network.Secondary data, which is secondary in nature i.e. already, collectedinformation. This secondary data is collected through- • Company broachers • Books • Magazines • News papers • Internet
  84. 84. KARNATAKA MILK FEDRATIONAnalysis and interpretation From the required data collected from the dealers and agents by way ofquestionnaires and personal interview, on the basis of collected data can beanalyzed and based on this analysis, conclusion and recommendations wasformulated.Research Approach: Survey MethodSampling Process: The process of drawing a sample from a large number ofAgents and dealers is called samplingThe sampling process is broadly divided into three categories, they are 4. Sampling unit 5. Sampling size 6. Sampling techniqueSampling Unit: Sampling unit for study is conducted on distributioneffectiveness on Nandini Milk and other products for agents and dealers fromthe various part of the Hubli And Dharwad.Sampling size: The sampling size consist the 100 agents, dealers for K.M.Fproducts in various parts of Hubli and Dharwad.Sampling technique: convenience and Non Probability judgment techniques.
  85. 85. KARNATAKA MILK FEDRATION Distribution Distribution is one of the four aspects of marketing. A distributionbusiness is the middleman between the manufacturer and retailer or (usually)incommercial or industrial the business customer. After a product ismanufactured by a supplier/factory, it is typically stored in a distributioncompanys warehouse. The product is then sold to retailers or customers. Theother three parts of the marketing mix are product management, pricing, andpromotion. Traditionally, distribution has been seen as dealing with logistics.The Distribution ChannelFrequently there may be a chain of intermediaries; each passing the productdown the chain to the next organization, before it finally reaches the consumeror end-user. This process is known as the distribution chain or, rather moreexotically, as the channel. Each of the elements in these chains will have theirown specific needs; which the producer must take into account, along withthose of the all-important end-user.ChannelsA number of alternative `channels of distribution may be available: 1. Selling direct (via a salesforce) 2. Mail order (including Internet and telephone sales) 3. Retailer 4. Wholesaler 5. Agent (who acts on behalf of the producer)
  86. 86. KARNATAKA MILK FEDRATION Vertical MarketingThis relatively recent development integrates the channel with the originalsupplier - producer, wholesalers and retailers working in one unified system.This may arise because one member of the chain owns the other elements(often called `corporate systems integration); a supplier owning its own retailoutlets, this being forward integration. It is perhaps more likely that a retailerwill own its own suppliers, this being backward integration. (For example,MFI, the furniture retailer, owns Hygena which makes its kitchen andbedroom units.) The integration can also be by franchise (such as that offeredby McDonalds hamburgers and Benetton clothes) or simple co-operation (inthe way that Marks & Spencer co-operates with its suppliers).Alternative approaches are `contractual systems, often led by a wholesale orretail co-operative, and `administered marketing systems where one(dominant) member of the distribution chain uses its position to co-ordinatethe other members activities. This has traditionally been the form led bymanufacturers.The intention of vertical marketing is to give all those involved (andparticularly the supplier at one end, and the retailer at the other) control overthe distribution chain. This removes one set of variables from the marketingequations.Other research indicates that vertical integration is a strategy which is bestpursued at the mature stage of the market (or product). At earlier stages it canactually reduce profits. It is arguable that it also diverts attention from the realbusiness of the organization. Suppliers rarely excel in retail operations and, intheory, retailers should focus on their sales outlets rather than onmanufacturing facilities ( Marks & Spencer, very deliberately providesconsiderable amounts of technical assistance to its suppliers, but does not ownthem).
  87. 87. KARNATAKA MILK FEDRATION Horizontal MarketingA rather less frequent example of new approaches to channels is where two ormore non-competing organizations agree on a joint venture - a joint marketingoperation - because it is beyond the capacity of each individual organizationalone. In general, this is less likely to revolve around marketing synergy. RetailersLike for wholesalers, it may be that you only use retailers if youmanufacture your own products: again, evidencing the larger smallerbusiness. Retailers can promote your product by making consumersaware of its availability and by passing on technical information thatcould encourage the sale.Because there are thousands of retailers located all around thecountry, they are an excellent intermediary for distributing your productto a wide geographical range of consumers.Today, many retailers prefer to buy their products directly fromproducers (you) instead of going through wholesalers: this is typical ofsupermarkets. By selling directly to retailers, the added expense oftransportation is the only issue.Small businesses account for a high proportion of retailers and so theycan often find themselves at the end or in the middle of a distributionchannel, where their own channel of selling to a consumer would bedirect.
  88. 88. KARNATAKA MILK FEDRATION Using Multiple Channels of DistributionWhen analyzing which distribution channel is best for your business,you should not restrict yourself to one channel, but instead adopt anumber of channels that are suitable for selling your product/serviceefficiently and effectively (if necessary).For example, a business may use a retailer to sell their product and atthe same time, use direct mail and telemarketing to further encouragesales: there are a number of feasible combinations. Choosing the Right Distribution ChannelThere are several factors affecting how you may decide on the mostappropriate distribution channel(s). A few of these are highlightedbelow:Profit and Sales • Which channels will maximise sales and profit? Using intermediaries such as agents, retailers and wholesalers can distribute your product on a wider scale but can often lead to reduced profit levels. Finding the right balance is the key
  89. 89. KARNATAKA MILK FEDRATIONProduct/Service • Perishable products such as certain foods (e.g. milk) usually require direct sales because of their short shelf lives. The same principle applies to fragile products to reduce the amount of transportation and handling • Arguably, services need to be sold direct or through intermediaries that provide a strong link between the consumer and the business such as direct mail, e-commerce or telemarketing. This way the consumer can specifically give their situation or requirements directly to the business so a tailored service can be provided • Products of low value that are manufactured in high quantities may be influenced to take a distribution channel involving a wholesaler. This way, it reduces the issue of storage, as wholesalers will buy in bulkThe Consumer • How convenient is it for them to purchase your product or service • Who is your target audience
  90. 90. KARNATAKA MILK FEDRATIONTelemarketingSelling your product/service through telemarketing is becomingincreasingly popular. Similar to direct mail, telemarketing allows salesto be made on a local, national and global scale, although the costs willincrease with the time and distance of phone calls. Extra skills mayalso be required creating the need for more staff. Alternatively, aprofessional service can be consulted to carry out the task: with anincreased cost and/or commission.Agents/BrokersAn agent or broker will help sell your product/service, but will not takeownership of what they are selling at any time. They usually work oncommission taking a percentage of the total sales made bythemselves. An agency or brokerage will sell your product or service,for example insurance, tickets for entertainment, accommodation, etc.This can be directly to the consumer or to retailers and wholesalers.Agents/brokers can sell your product on a scale than extends from yourbusiness premises and are very useful for expanding your businessinto foreign markets.Perhaps the most common example of an agent would be a travelagency. They never own the holidays or credit the full amount of thesale to their business. Instead, they act as a link between the holidayresort and the consumer, taking a commission on the sales.
  91. 91. KARNATAKA MILK FEDRATIONWholesalersIt may be that you only sell to a wholesaler if you manufacture yourown products: possibly evidencing a larger small business. If this is thecase, a wholesaler can be used to distribute your products reaching apotentially large number of consumers. The main function of awholesaler is to provide a link between the producer (you) and theretailer. The advantage of selling to a wholesaler is that they often buyin bulk, splitting the purchase into smaller manageable quantities forfurther selling to retailers.Once selling to a wholesaler, there are three ways that your productwill reach the consumer. Firstly, the consumer will purchase directlyfrom the wholesaler: this is the less common route out of the three.Alternatively, your products will be sold on by the wholesaler toretailers.The other advantages of selling to a wholesaler are that they may havestrong links with quality retailers: research will help discover this fact. Inaddition, because they buy in bulk, it reduces the burden of on-sitestorage at your premises reducing overhead costs. Further,wholesalers will also take away the burden of transportation, as theyoften have their own network of transport delivering goods directly toretailers, which would normally be your responsibility.The disadvantage of using a wholesaler to distribute your products isthat they cannot market your products extensively. Further, becausethey buy in bulk, it is often you will sell at a price much lower than thefinal retail price. Therefore, the wholesaler will take some of the profitbecause they will sell on your products in smaller quantities at a higherprice.
  92. 92. KARNATAKA MILK FEDRATION Analysis AndInterpretation
  93. 93. KARNATAKA MILK FEDRATION 1. Which products do you sell more in a day? S.No Product No of Percentage Respondent 1 Toned Milk 47 47% 2 Standard Milk 29 29% 3 Shubham Milk 19 19% 4 Full Cream Milk 5 5% Total 100 100% 50% 47% 45% 40% 35% 29% 30% 25% Series2 19% 20% 15% 10% 5% 5% 0% Toned Milk Standard Milk Shubham Milk Full cream MilkInterpretation  From the above chart Most of the agents are high sales toned milk and secondly standard milk of Nandini 2.What time do you sell more products?
  94. 94. KARNATAKA MILK FEDRATION S.No Timing No of Percentage respondent 1 Morning 63 63% 2 Afternoon 5 5% 3 Evening 29 29% 4 Any time 3 3% Total 100 100% 70% 63% 60% 50% 40% Series1 30% 20% 17% 9% 11% 10% 0% Morning Afternoon Evening Any timeInterpretation  From the above chart 63 percentage of agents are sell in the morning it has clear that the delivery of the product should reach the agents before 5.45 AM ‘o’ clock 3.What credit period do you expect from the organization? S.No Credit period No of Parentage respondent
  95. 95. KARNATAKA MILK FEDRATION 1 1 day 40 40% 2 15 day 16 16% 3 1 month 15 15% 4 Cash payment 29 29% Total 100 100% 29% 40% 1 day 15 days 1 month Cash payment 15% 16%Interpretation Most of the agents are wants a credit from one day and some and cash payments are also high in the above pie chart 4.What incentives do you expect from bulk purchase S.No Incentives No of Percentage respondent 1 Cash discount 79 79% 2 Gifts 3 3% 3 Scheme benefit 12 12% 4 Other 6 6% Total 100 100%
  96. 96. KARNATAKA MILK FEDRATION 90% 79% 80% 70% 60% 50% Series1 40% 30% 20% 12% 10% 6% 3% 0% Cash discount Gifts Schems Other specifyInterpretation  In the above chart it is cleared that 79% of the agents wants to increase in the commission or in other scheme benefits which is benefit for agents 5.Are you satisfied with delivery time taken by K.M.F? S.No Satisfaction of No of Percentage delivery time respondent 1 Yes 69 69% 2 No 31 31% Total 100 100%
  97. 97. KARNATAKA MILK FEDRATION 31% Yes No 69%Interpretation  In the above pie chart 69% of the agents are satisfied with the delivery time but who is in the last points the vehicle are not reaches the correct time that is 31% agents are not satisfied with the delivery time. 6.Are you satisfied with the approach of sales man? S.No Satisfaction of No of Percentage sales man respondent 1 Yes 69 69% 2 No 31 31% Total 100 100%