Karnataka Milk Federation- DharwadADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR   Page 1
Karnataka Milk Federation- Dharwad                              EXECUTIVE SUMMARY                                 INTRODUC...
Karnataka Milk Federation- Dharwad                                   CHAPTER-1                            INDUSTRIAL PROFI...
Karnataka Milk Federation- DharwadPatented a method for making condensed milk by heating it in a partial vacuum, Not only ...
Karnataka Milk Federation- Dharwad                      DAIRY INDUSTRY IN INDIA     Dairy enterprise is an important occup...
Karnataka Milk Federation- Dharwad                                    INDIAN DAIRY INDUSTRY                             In...
Karnataka Milk Federation- Dharwad                          THE FATHER                                     OF             ...
Karnataka Milk Federation- Dharwad                                  Dr. Verghese Kurien                               Born...
Karnataka Milk Federation- DharwadMagsaysay Award for Community Leadership (1963), the Wateler Peace Prize Award ofCarnegi...
Karnataka Milk Federation- Dharwad                            I Too Had a Dream   I had to a dream Category: Non-Fiction  ...
Karnataka Milk Federation- Dharwad   In these memoirs, Dr Verghese Kurien, popularly known as the father of the whiterevol...
Karnataka Milk Federation- Dharwad                           NATIONAL DAIRY                   DEVELOPMENT BOARD           ...
Karnataka Milk Federation- DharwadThe Growth      NDDB began its operations with the mission of making dairy a vehicle to ...
Karnataka Milk Federation- Dharwad PHILOSPHY          We believe thatCo-operation is the preferred form of enterprise, giv...
Karnataka Milk Federation- Dharwad                        PERSPECTIVE 2010 PLANThe Perspective 2010 plan of the Dairy Boar...
Karnataka Milk Federation- Dharwad                                          CHAPTER-2                                     ...
Karnataka Milk Federation- DharwadKARNATAKA CO-OPERATIVE MILK PRODUCERS’ FEDERATIONLIMITED (KMF):KMF is the apex Body in K...
Karnataka Milk Federation- Dharwad       The growth process……                 The growth over the years and activities und...
Karnataka Milk Federation- Dharwad1.6 THE DISTRICT CO-OPERATIVE SOCIETY (DCS):It is basic organization unit, functioning a...
Karnataka Milk Federation- DharwadMILK FEDERATION:The main objective of the federation is to help in formation of Milk Uni...
Karnataka Milk Federation- DharwadKarnataka Milk Federation consists of:      UNITS                              NO      M...
Karnataka Milk Federation- Dharwad            ORGANIZATION OVERVIEW                                     Of               D...
Karnataka Milk Federation- Dharwad                  DHARWAD MILK UNION (DMU)      Dharwad Milk Union (DMU) came into exist...
Karnataka Milk Federation- DharwadDMU MISSION STATEMENT:At DMU we Endeavour to satisfy the taste and nutritional requireme...
Karnataka Milk Federation- DharwadObjectives of DMU:     Providing hygienic and good quality of milk to the consumers.   ...
Karnataka Milk Federation- DharwadNature of business carriedProcuring and marketing of milk production and sale of milk pr...
Karnataka Milk Federation- Dharwad                           PRODUCT PROFILE        KMF, Dharwad product the following mil...
Karnataka Milk Federation- Dharwad                     NANDINI SET CURDSA Nandini curd made from pure milk, its thick deli...
Karnataka Milk Federation- Dharwad                                 GOOD LIFE MILK         Cows pure milk, UHT processed, b...
Karnataka Milk Federation- Dharwad                        MYSORE PAKFresh and tasty, Nandini Mysore Pak is made from quali...
Karnataka Milk Federation- Dharwad                          ICE CREAM       Nutritious, delicious creamy ice cream is manu...
Karnataka Milk Federation- Dharwad       Area of operation - Regional        Ownership patternDMU builds and runs under th...
Karnataka Milk Federation- DharwadFuture growth and prospects    Procuring and selling 1 lack litters per day.    Prepar...
Karnataka Milk Federation- Dharwad       A) Organization structure                                            President  D...
Karnataka Milk Federation- DharwadDharwad Milk Union:STATUS                      A Co-operative society registered under t...
Karnataka Milk Federation- Dharwad                     PROCUREMENT AND INPUT DEPARTMENT       The union carries on procure...
Karnataka Milk Federation- Dharwad                     THE STRUCTURE OF P & I DEPARTMENT                                  ...
Karnataka Milk Federation- Dharwad                   PRODUCTION AND PROCESS DEPARTMENT         The main objective of this ...
Karnataka Milk Federation- DharwadWork flow model. (End to End):Production process has the following work flow model.     ...
Karnataka Milk Federation- Dharwad                          PASTEURIZATION OF CREAM:         The milk in bulk is taken to ...
Karnataka Milk Federation- DharwadMILK POWDER:    When there is excess of milk. Milk powder is made the capacity of the po...
Karnataka Milk Federation- Dharwad                       PRODUCTION DEPARTMENT         The production department has the f...
Karnataka Milk Federation- Dharwad                     QUALITY CONTROL DEPARTEMENT        In DMU, at every stage, care is ...
Karnataka Milk Federation- Dharwad                    QUALITY CONTROL DEPARTEMENT STRUCTURE                               ...
Karnataka Milk Federation- Dharwad                         MARKETING DEPARTMENT                             Marketing Mana...
Karnataka Milk Federation- Dharwad           STARAGETIES OF THE MARKETING DEPARTMEN    Visit to all routes of individual ...
Karnataka Milk Federation- Dharwad                                  STORES DEPARTEMENTThe Stores Department in DMU follows...
Karnataka Milk Federation- Dharwad                              FINISHED GOODS STORES:     This Department acts as an inte...
Karnataka Milk Federation- Dharwad                           FINANCE DEPARTMENT       This Department is responsible for k...
Karnataka Milk Federation- Dharwad                             PURCHASE DEPARTMENT             It is a sub-department, whi...
Karnataka Milk Federation- Dharwad                           ADMINISTRATION DEPARTMENT:   The Administration Department co...
Karnataka Milk Federation- Dharwad       The Administration Department also handles Canteen, Security and Time KeepingMach...
Karnataka Milk Federation- DharwadTRAINING SYSTEM    The Union emphasizes on training the employees. Most of the training ...
Karnataka Milk Federation- Dharwad           COMPETITOR PROFILEADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR   Pag...
Karnataka Milk Federation- DharwadMajor competitor in Karnataka for K.M.FHATSUN (Arokya)Welcome to the Hatsun world, India...
Karnataka Milk Federation- DharwadSalesThe combined sales of arokya and komatha is 7,5000 liters a day. And hastsun is fas...
Karnataka Milk Federation- Dharwad             SWOT ANALYSISADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR   Page 57
Karnataka Milk Federation- Dharwad                             SWOT ANALYSISSTRENGTH   Nandini enjoys good image.   Wide...
Karnataka Milk Federation- Dharwad                          Project                        OverviewADHICHUNCHANAGIRI INSTI...
Karnataka Milk Federation- Dharwad                       INTRODUCTION OF PROJECT                                    Introd...
Karnataka Milk Federation- DharwadAIMS & OBJECTIVES:  1. To study the organization overview.  2. The study has been unders...
Karnataka Milk Federation- Dharwad METHODOLOGY        In this project the questionnaire was designed for dealers and agent...
Karnataka Milk Federation- Dharwad                 Analysis and interpretation       From the required data collected from...
Karnataka Milk Federation- DharwadPopulation size:Hubli-Dharwad City   Total           Male               FemalePopulation...
Karnataka Milk Federation- Dharwad            DISTRIBUTION                  CHANNELADHICHUNCHANAGIRI INSTITUTE OF TECHNOLO...
Karnataka Milk Federation- Dharwad                                      Distribution      Distribution is one of the four ...
Karnataka Milk Federation- DharwadChannelsA number of alternative `channels of distribution may be available:   1. Selling...
Karnataka Milk Federation- DharwadHorizontal MarketingA rather less frequent example of new approaches to channels is wher...
Karnataka Milk Federation- DharwadProfit and Sales       Which channels will maximise sales and profit? Using intermediari...
Karnataka Milk Federation- Dharwadexample insurance, tickets for entertainment, accommodation, etc. This can be directly t...
Karnataka Milk Federation- Dharwad            DHARWAD MILK UNION DISTRIBUTION CHANNELADHICHUNCHANAGIRI INSTITUTE OF TECHNO...
Karnataka Milk Federation- Dharwad             PROMOTIONAL ACTIVITIES CARRIED OVER BY KMFPromotional activities are the ac...
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  1. 1. Karnataka Milk Federation- DharwadADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 1
  2. 2. Karnataka Milk Federation- Dharwad EXECUTIVE SUMMARY INTRODUCTION Karnataka milk federation was setup in 1974 on the AMUL pattern it is the thirdlargest co-operative federation in India and first in south India. There are 17 unions inKarnataka. The project is conducted to know the “distribution effectiveness in Hubli-Dharwadfor K.M.F” in Dharwad. As present market is highly competitive, if one not reaches toultimate customer other reaches and grabs the opportunity. So an effort made by the companylike manufacturing, promotion etc. are gets wasted. So it becomes important to reach ultimatecustomer at right time and right place, by knowing the requirement of the market. In 1960‟s & 70‟s the product dominated the market, but presently the scenario haschanged because of the competition (man players in market).Secondly the customer has manychoices to choose a single product, immediately he/she shifts to the other product. After the liberalization many organizations entered the new markets or expandingbusiness into new areas and they have set up the plants in different regions in the country.Hence it has become vital important to local player to compete with them in quality, pricing,distribution etc. under such condition plays very important to grab even small of the smallopportunities. It becomes important to update to the market requirement to compete in competitiveworld. So to know the market requirement we should have proper information from themarket. So I selected this project, which can serve the specified information, which couldhelp to the organization to improve the distribution channel effectively in the market. So toserve better from the existing oneADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 2
  3. 3. Karnataka Milk Federation- Dharwad CHAPTER-1 INDUSTRIAL PROFILE History of Milk Animal milk was first used as beverage at the beginning of animal domestication. Goatsand sheep were domesticated in the Middle East in 9000BC. Goats and sheep were one of thefirst animals to be domesticated. Around the year 7000 BC, cattle were being herded in partsof Africa and Turkey. Milk was also consumed in the British Isles during the Neolithicperiod. Dairy products 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. Cattle were thenintroduced to European colonies after the Age of exploration.Background Milk Is a nutritive beverage obtained from various animals and consumed by humans. Most milkis obtained from dairy cows, although milk from goats, water buffalo, and reindeer is alsoused in various parts of the world. In the United States, and in many industrialized countries,raw cow‟s milk is processed before it is consumed. During processing the fat content of themilks adjusted, various vitamins are added, and potentially harmful bacteria are killed. Inaddition to being consumed as a beverage, milk is also used to make butter, cream, yogurt,cheese, and a variety of other products.History Cattle were first brought to the United States in the 1600s by some of the earliest colonists.Prior to the American Revolution most of the dairy products were consumed on the farmwhere they were produced. By about 1790, population centres such as Boston, New York,and Philadelphia had grown sufficiently to become an attractive market for larger-scale dairyoperations. To meet the increased demand, farmers began importing breeds of cattle that werebetter suited for milk production. The first Holstein-Friedens were imported in 1795, the firstAirsides in 1822, and the first Guernsey‟s in 1830.With the development of the dairy industryin the United States, a variety of machines for processing milk were also developed. In 1856,Gail BordenADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 3
  4. 4. Karnataka Milk Federation- DharwadPatented a method for making condensed milk by heating it in a partial vacuum, Not only didhis method remove much of the water so the milk could be stored in a smaller volume, but italso protected the milk from germs in the air. Borden opened a condensed milk plant andcannery in Wassail, NewYork, in 1861. During the Civil War, his condensed milk was usedby Union troops and its popularity spread. In 1863, Louis Pasteur of France developed a method of heating wine to kill themicroorganisms that cause wine to turn into vinegar. Later, this method of killing harmfulbacteria was adapted to a number of food products and became known as pasteurization. Thefirst milk processing plant in the United States to install pasteurizing equipment was theSheffield Farms Dairy in Bloomfield, New Jersey, which imported a German-madepasteurizer in 1891. Many dairy operators opposed pasteurization as an unnecessary expense,and it wasn‟t until 1908 that Chicago became the first major city to require pasteurized milk.New York and Philadelphia followed in 1914, and by 1917 most major cities had enactedlaws requiring that all milk be pasteurized.One of the first glass milk bottles was patented in 1884 by Dr. Henry Thatcher, after seeing amilkman making deliveries from an open bucket into which a Childs filthy rag doll hadaccidentally fallen. By 1889, his Thatcher‟s Common Sense Milk Jar had become an industrystandard. It was sealed with a waxed paper disc that was pressed into a groove inside thebottles neck. The milk bottle, and the regular morning arrival of the milkman, remained a partof American life until the 1950s, when waxed paper cartons of milk began appearing inmarkets. In 1990, the annual production of milk in the United States was about 148 billion lb(67.5 billion kg). This is equivalent to about 17.2 billion U.S. gallons (65.1 billion litters).About 37% of this was consumed as fluid milk and cream, about 32% was converted intovarious cheeses, about 17% was made into butter, and about 8% was used to make ice creamand other frozen desserts. The remainder was sold as dry milk, canned milk, and other milkproducts.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 4
  5. 5. Karnataka Milk Federation- Dharwad DAIRY INDUSTRY IN INDIA Dairy enterprise is an important occupation of farmer. In India nearly 70% of the peopleDepend on agriculture. It is the backbone of India. Dairy is linked with agriculture industry toa large extent. Animal husbandry in India is an essential part of agriculture. It is mainly arural occupation closely associated with agriculture.DEVELOMENT OF DAIRY INDUSTRY IN INDIA During the Pre-independence year there was no serious stress given to dairy industry. In1886 the Department of Defence of the British Government established the dairy farms forthe supply of milk to the British troops in Allahabad. Later, in 1920 serious steps were takenby Mr. William Smith, an expert in dairy forming to improve the milk production There wasdiscrimination done to the Indians hence this led to the rise of the first milk union in India. InLuck now in 1937 called the Luck now milk producer‟s Co-operative union Ltd. In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the economicstability of villagers. When the farmer Prime Minister Lal Bahaddur Shastri visited the functioning as it wasrendering a social service to the society, which helped the villagers to come in the nationaleconomic stream. The dairy and Animal Husbandry received serious attention after the independence. ThereWere lots many of progressive steps taken by the government through five year plans. This led to the formation of National Dairy Development Board in 1965 & thus in 1970he decided to bring a “White Revolution” throughout the country, Initially 10 states wereselected for this purpose excluding Karnataka. In Karnataka in 1974 an integrated project was launched to restructure and reorganize thedairy industry on Co-operative principle of AMUL and to lay foundation for new direction indairy industry.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 5
  6. 6. Karnataka Milk Federation- Dharwad INDIAN DAIRY INDUSTRY India: World’s Largest Milk ProducerIndia has become the world‟s No. 1 milk producing country, with output in 1999-2000(marketing year ending March 2000) forecasted at 78 million tonnes. United States, wherethe milk production is anticipated to grow only marginally at 71 million tonnes, occupied thetop slot till 1997. In the year1997, India‟s milk production was on par with the U.S. at 71million 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 of growth in milkproduction in India is between 5-6 per cent, against the world sat 1 per cent. The steep rise inthe growth pattern has been attributed to a sustained expansion in domestic demand, althoughper capita consumption is modest - at 70 kg of milk equivalent. World’s Top milk Producers.Following is the list of Top 10 Countries By Milk Production as per US Department ofAgriculture, 2011: S.No. Country Production (1000 MT) 1 EU-27 140,620.00 2 India 121,500.00 3 United States 88,768.00 4 China 31,780.00 5 Russian Federation 31,200.00 6 Brazil 30,846.00 7 New Zealand 18,049.00 8 Mexico 11,228.00 9 Argentina 11,070.00 10 Ukraine 10,812.00ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 6
  7. 7. Karnataka Milk Federation- Dharwad THE FATHER OF “WHITE REVOLUTION” IN INDIAADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 7
  8. 8. Karnataka Milk Federation- Dharwad Dr. Verghese Kurien Born on 26th November 1921Dr. Kurien graduated with Physics from Loyola College, Madras in 1940 and then did B.E.(Mech) from the Madras University. He was very good at cricket, tennis, and boxing, andrepresented his college at state level. After passing out of the University, he joined the TataSteel Technical Institute, Jamshedpur from where he graduated in 1946 Instead of taking the charted course of managerial career at Jamshedpur, Dr.Kuriencompeted and qualified at the all India level selection for specialized studies in USA undergovernment scholarship and passed the Master of Science in Mechanical Engineering fromthe Michigan State University with distinction. When he came back to India, he was posted as a Dairy Engineer at the governmentcreamery, Anand, in May 1949. Around the same time, the infant cooperative dairy, KairaDistrict Cooperative Milk Producers Union Limited (KDCMPUL), -- now famous as AMUL-- was fighting a battle with the Polson Dairy which was privately owned. Young Kurien, fedup with being at the government creamery which held no challenge, volunteered to help ShriTribhuvandas Patel, the then Chairman of KDCMPUL, to set up a processing plant, whichmarked the birth of AMUL. The rest is history. Dr. Kurien is a manager and institutional builder par excellence. He has built dozens ofinstitutions including the Institute of Rural Management, Anand of which he is the founderChairman. He is also the founder Chairman of the National Dairy Development Board(NDDB) which designed and implemented the world‟s largest dairy development programme– the Operation Flood. Dr.Kurien may rightly be called the architect of India‟s modern dairyindustry and the father of White Revolution ushered in by the Anand-pattern dairycooperatives established under the Operation Flood. Dr.Kurien in his impressive career spanning over almost five decades has beenhonoured by several national and international organisations. He has been conferred honorarydoctorate degrees by several universities in India and Abroad. He has been decorated with thePadmashri (1965) Padmabhushan(1966), Krishi Ratna Award (1986) and Padma Vibhushan(1999) by the President of India. He has won many awards including the prestigious RamonADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 8
  9. 9. Karnataka Milk Federation- DharwadMagsaysay Award for Community Leadership (1963), the Wateler Peace Prize Award ofCarnegie Foundation (1986), the World Food Prize Award (1989) and the InternationalPerson of the Year Award (1993) by the World Dairy Expo, Madison, Wisconsin, USA and"Ordre du Merite Agricole" by the Government 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• Dr. Paulos Mar Gregorious Award 1999, New Delhi• The Economic Times Lifetime Achievement Award for the Corporate Excellence, Mumbai2001• Lifetime Achievement Award for Translating Excellence in Corporate Governance intoReality, from the Institute of Company Secretaries of India, New Delhi (November 2001)• Lifetime Achievement Award for Social Service for the Tenth Red & White awards, NewDelhi (January 2002)• Yashwantrao Chavan Natioanl Award for National Integration, Democratic Values, Socialand 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) IToo Had a DreamADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 9
  10. 10. Karnataka Milk Federation- Dharwad I Too Had a Dream I had to a dream Category: Non-Fiction Author: Dr Verghese Kurien as told to Gouri Salvi Publisher: Roli Books From the lack cover Architect of Operation Flood, the largest dairy development programme in the world,Dr Verghese Kurien has enabled India to become the largest milk producer in the world. Aman with a rare vision, Dr Kurien has devoted a lifetime to realising his dream – empoweringthe 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 of farmerswere forming a cooperative, Kaira District Cooperative Milk Producers‟ Union Limited(better known as Amul), to sell their milk. Intrigued by the integrity and commitment of theirleader Tribhuvandas Patel, Dr Kurien joined them. Since then there has been no lookingback. The Anand pattern of co-operatives were so successful that, at the request of theGovernment of India, he set up the National Dairy Development Board to replicate it acrossIndia. He also established the Gujarat Cooperative Milk Marketing Federation to market itsproducts.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 10
  11. 11. Karnataka Milk Federation- Dharwad In these memoirs, Dr Verghese Kurien, popularly known as the father of the whiterevolution, recounts, with customary candour, the story of his life and how he shaped thedairy industry. Profoundly inspiring, these memoirs help us comprehend the magnitude of hiscontributions and his multifaceted personality."I have often claimed that I have had but one good idea in my life: true development is thedevelopment of women and men. This idea took such a hold of me that I remained in thissmall, sleepy town of Anand for over fifty years as an employee of farmers. I was never ableto give this up for what many call "a better life". These years have, without an iota of doubt,been the most rewarding years of my life. Over the years I have spoken ceaselessly of thisidea, hoping to Enthuse young women and men to adopt my passion as theirs. I have beenfortunate that there have been many who took up the challenge."ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 11
  12. 12. Karnataka Milk Federation- Dharwad NATIONAL DAIRY DEVELOPMENT BOARD About NDDBThe National Dairy Development Board was created to promote, finance and supportproducer-owned and controlled organizations. NDDBs programmes and activities seek tostrengthen farmer cooperatives and support national policies that are favourable to the growthof such institutions. Fundamental to NDDBs efforts are cooperative principles and the AnandPattern of Co-operation.NATIONAL DAIRY DEVELOMENT BOARD:HistoryThe NDDB was founded to replace exploitation with empowerment, tradition withModernity, Stagnation with growth, transforming dairy into and instrument for thedevelopment of Indian‟s rural people.The NDDB was established in 1965; the board is registered under the Societies RegistrationAct and the public Trust Act, fulfilling the desire of the Prime Minister of India – the late LalBahaddur Shastri to extend the success of the Kaira Co-operative Milk producers union,AMUL to other parts of India. Dr Vergese Kurien was the founder chairman.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 12
  13. 13. Karnataka Milk Federation- DharwadThe Growth NDDB began its operations with the mission of making dairy a vehicle to a betterfuture for millions of gross roots milk producers. The mission archived helped to launch“Operation Flood‟‟ a programme extending over 26 years and with the help of World BankLoan India become the world‟s largest milk producing country. As per March 2001 India‟s96000 Dairy Co-operative are integrated through a three Tier Co-operative structure. TheAnand pattern, which is owned by more than 10 million formers, procures an average of 1605million liters of milk every day. The milk is processed and marketed by 170 milk producers‟co-operative unions which, in turn own 15 state co-operative milk marketing federation.Since its establishment the dairy development board has planned and spearheaded India‟sDairy programmer by placing dairy development in the hands of milkServices rendered by NDDB:NDDB provide the following services. a. Planning dairy and rural development projects. b. Organization of farmer co-operative societies. c. Setting up of dairy and cattle feed plants. d. Manpower planning and training. e. Applied research and development. Implementation of milk production enchantment programme.Objectives of NDDB: 1. To sponsor, promote, manage, acquire, construct or control any plant or work, 2. Which promote projects of general public utility relation to dairying, 3. To make information available on request to technical services to increase Production of Milk, 4. To prepare initial feasibility studies of dairying and other dairy related projects And undertake subsequent designing planning and start up those projects. 5. To undertake research and development programme related to production and Marketing of milk and milk products, 6. To provide assistance for exchange of information to other international agencies.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 13
  14. 14. Karnataka Milk Federation- Dharwad PHILOSPHY We believe thatCo-operation is the preferred form of enterprise, giving people control over the resources theycreate through democratic self-governance.Self-reliance is attained when people work together, have a financial stake, and both enjoythe autonomy and accept the accountability for building and managing their own institutions Progressive evolution of the society is possible only when development is directed by thosewhom it seeks to benefit. All beneficiaries, particularly women and the less privileged must be involved incooperative management and decision makingTechnological innovation and the constant search for better ways to achieve our objectives isthe best way to retain our leading position in a dynamic marketWhile our methods change to reflect changing conditions, our purpose and values mustremain constant. CONSTITUTIONThe National Dairy Development Board has been constituted as a body corporate anddeclared an institution of national importance by an Act of India‟s Parliament.The National Dairy Development Board -- initially registered as a society under the SocietiesAct 1860 -- was merged with the erstwhile Indian Dairy Corporation, a company formed andregistered under the Companies Act 1956, by an Act of India‟s Parliament - the NDDB Act1987 (37 of 1987),with effect from October 12, 1987. The new body corporate was declaredan institution of national importance by the Act.The general superintendence, direction, control management of NDDBs affairs and businessvests with the Board of Directors.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 14
  15. 15. Karnataka Milk Federation- Dharwad PERSPECTIVE 2010 PLANThe Perspective 2010 plan of the Dairy Board maps the future of dairying in India, settingrealistic goals for Strengthening Cooperative Business, Production Enhancement, AssuringQuality, and creating an Information and Development Research. The plan was realized withthe successful completion of the Operation Flood Programme and has been developed by theState Milk Marketing Federations and the Milk Producers Cooperative Unions inconsultations with the Dairy Board. The Perspective 2010 goals and strategies to meet themhave been drawn by its actual implementers - Federation and Unions and supported byNDDB.DAIRY CO-OPERATIVESDairy Cooperatives account for the major share of processed liquid milk marketed in thecountry. Milk is processed and marketed by 170 Milk Producers Cooperative Unions, whichfederate into 15 State Cooperative Milk Marketing Federations. The Dairy Boards programmes and activities seek to strengthen the functioning of DairyCo-operatives, as producer-owned and controlled organizations. NDDB supports thedevelopment of dairy cooperatives by providing them financial assistance and technicalexpertise, ensuring a better future for India‟s farmers.Over the years, brands created by cooperatives have become synonymous with quality andvalue. Brands like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan).Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that haveearned customer confidence.HEAD OFFICENational Dairy Development BoardP.B. No. 40Anand - 388 001GujaratINDIATelephone: 91-2692-260148/260149/260159/260160Fax: 91-2692-260159/260165ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 15
  16. 16. Karnataka Milk Federation- Dharwad CHAPTER-2 COMPANY PROFILE KARNATAKA MILK FEDERATIONThe first dairy in Karnataka was started in Kudige in Kodagu district in 1955, further in June1974, an integrated project was launched in Karnataka to restructure and reorganize the dairyindustry on the co-operative principle and to lay foundation for a new direction in dairydevelopment. In 1975, the World Bank aided dairy development was initiated. The presentKarnataka Milk Federation (KMF) came into existence in 1984 as a result of merging ofKarnataka Dairy Development Co-operation, small co-operatives and Karnataka MilkProduction Development and loose vendors. At the end of the March 1998, the network of 8023 Diary Co-operative Societies(DCS) have been established which are spread over 166 taluks of the total 175 taluks in all 30Districts of Karnataka, There are 13 Milk Unions and Dharwad Milk Union (DMU) is oneamong them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants andProduct dairies for chilling, processing, conservation and marketing of milk. To supply cattlefeed there are 4 cattle feed plants. To ensure supply of quality germ plasma, Bull breeding farm and frozen semenbank are also available.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 16
  17. 17. Karnataka Milk Federation- DharwadKARNATAKA CO-OPERATIVE MILK PRODUCERS’ FEDERATIONLIMITED (KMF):KMF is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largestdairy co-operative amongst the dairy co-operatives in the country. To impart training,institutes at Bangalore and regional training institutes at Dharwad and Gulbarga arefunctioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5CPM) are been set-upto supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers havebeen set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodaguhave been set-up to supply good quality of fodder and seed production farm at Shahpur hasbeen set-up.The federation giving details of the latest technology in dairy industry etc is published“Ksheer Sagar‟‟ magazine monthly.KMF is a co-operative apex body in the state of Karnataka for representing dairyOrganizations and also implementing dairy development activities to achieve the Followingobjectives. 1) Providing assured and remunerative market for all the milk produced by the farmer members. 2) Providing hygienic milk to urban consumers. 3) To build village level institutions in co-operative sector to manage the dairy activities. 4) To ensure provision of milk production inputs, processing facilities and dissemination of know-how. 5) To facilitate rural development by providing opportunities for self-employment at village level, preventing migration to urban areas, etc.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 17
  18. 18. Karnataka Milk Federation- Dharwad The growth process…… The growth over the years and activities undertaken by KMF is summarized briefly here under: 1976-KEY ITEMS 2011-2012(Up to Mar12) 2012-13(Upto OCT12) 77 13340 REGED /11870 Dairy Co-operatives No’s 416 13006 REGED / 11568 Funct Funct Membership No’s 37000 21.51 Lacs 21.96 Lacs Avg.42.85 Avg.50.05 Avg. Milk Procurement Kg’s/day 50000 Peak Proc.46.49(Nov11) Peak Proc.54.56(Nov12LKPD) LKPD 28.90 LLPD / Curd:2.74 LKPD / 29.83 LLPD / Curd:3.05 LKPD / Good Milk Sales Lt’s/day 95050 Good life 2.19 LLPD life 2.33 LLPD Cattle Feed Consumed Kg’s/DCS 220 2958 2766 Daily Payment to Rs.Lakhs 0.90 785 990 Farmers Turnover Rs.Crores 5823.69 ---------- FUNCTIONS OF KMF  Co-ordination of activities between the unions.  Developing the markets for the increasing in milk production.  To make the brand „‟Nandini‟‟ as a house hold name.  To increase the market share of „‟Nandini‟‟. ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 18
  19. 19. Karnataka Milk Federation- Dharwad1.6 THE DISTRICT CO-OPERATIVE SOCIETY (DCS):It is basic organization unit, functioning at the village level, by training local people toorganize and manage the activities village level institution building and development of localleadership is promoted.FUNCTIONS  It functions daily and acts as a marketing outset for the milk produced in the village.  Input facilities are also canalized to the dairy farmers through these societies and include Veterinary First Aid, Sale of Cattle Feed, Supply of Fodder Seeds, Seedling and Provisions of Mobile Veterinary Health Care etc.  Payment for the milk is done through society.THE MILK UNION Milk union is a channel of District Co-Operative Societies in organized form for milkProcurement, The procurement route is linked to chilling center or a dairy. Dharwad MilkUnion is one of such Milk Unions. It is the middle tier of the complex co-operativeorganization network. Unions are formed by federating the societies in locating geographicalarea. The milk unions are organized to make them economically viable and the jurisdictionextends from one district to 3 Districts. There are 5 Milk Unions who‟s Jurisdiction covers asingle district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Union‟sterritory extends to 4 District. All Unions own their own Milk Processing Facilities.FUNCTIONSThese Unions help to organize new Primary Dairy Co-operative Societies. The Union alsohelps in managing these DCS by assisting in accounts, purchase, process and marketingliquid milk. The Union helps in providing all the input facilities to DCS and channelizes thedairy farmers through DCS. The Union provides the following facilities.  Providing Balanced Cattle Feed.  Providing Animal Health Care.  Providing Artificial Insemination facility for breed improvement.  Providing Training for breeding, feeding management.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 19
  20. 20. Karnataka Milk Federation- DharwadMILK FEDERATION:The main objective of the federation is to help in formation of Milk Unions through the stateand thus forming the state level ape‟s organization. The Federation implements the entireproject Activates, after the project activities are accomplished the federation aims atformulating Marketing strategies in marketing the Milk and Milk Product. The KarnatakaMilk Federation which was setup in 1984 has the following functions:  The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases  The Federation also manages surpluses and deficiencies of liquid of milk among the milk union and help in disposing milk and milk product at reasonable price  The Federation also manages to market the milk and milk products outside the state.  Provides Balanced cattle feed, mineral mixture, frozen semen semen straws and liquid nitrogen are produced and distributed to Unions Excellence in quality is maintained to lay a solid foundation for widespread acceptance of the milk and milk products.  Training and developing senior managerial personnel, acquiring and applying all recent technologies, prescribing quality guidelines and norms.UNITS OF KMFKMF 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.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 20
  21. 21. Karnataka Milk Federation- DharwadKarnataka Milk Federation consists of: UNITS NO Milk units 13 Dairies 17 Liquid Nitrogen Silos 6 Product Plant 3 Training center 3 Sperm Station 1 Cattle Feed Plant 4 Pouch Film Plant 1ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 21
  22. 22. Karnataka Milk Federation- Dharwad ORGANIZATION OVERVIEW Of DHARWAD MILK UNIONADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 22
  23. 23. Karnataka Milk Federation- Dharwad DHARWAD MILK UNION (DMU) Dharwad Milk Union (DMU) came into existence on 3-3-1986.DMU was establishedunder co-operative act on 3-3-1986 at Dharwad and Gadag, Haveri, Uttar kannada andDharwad come under its operation.Establishment:The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF.The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It islocated in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent tothe Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat.History:A group of experienced officers, appointed by the Karnataka Milk Federation surveyed thewhole of Dharwad districts (includes two newly formed district Gadag and Haveri) and UttarKarnataka. Further they found out there as a need for a Milk Dairy. They travelled theSurrounding villages educated the villagers about Milk and Milk products and the benefitsthey would get from the Milk Dairy. Seeing the overwhelming response and untapped resources and the huge market theFederation decided to setup the Milk Union in 1984, known as theADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 23
  24. 24. Karnataka Milk Federation- DharwadDMU MISSION STATEMENT:At DMU we Endeavour to satisfy the taste and nutritional requirements of the customers.Through excellence in marketing by DMU committed team, DMU are committed to offeringquality products that provide best value for money.DHARWAD DISTRICT CO-OPERATIVE MILK PRODUCERS SOCIETIESUNION LIMITED:Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under theUnion. In 1989, the training center, which was controlled by KMF, came under DharwadMilk Union.DMU was Rs.7 Crore Projects of which Government has Rs.2Crore of share capital andAuthorized capital of DMU is Rs.5crore.DMU formed 551 milk producer‟s co-operative societies in Dharwad, Gudag, and Haverialso Uttar Kannada districts.The production capacity of DMU is 2 lack litters of milk per day and also has the capacity toproduce 12 tons of milk powder, 10 tons of butter, 6 tonnes of ghee per day.DMU is collecting 70thousand litters of milk per day from its societies and sells 60 thousandlitters of milk per day and the remaining milk is used for producing milk products.Functions of DMU  The main function of DMU is to procure milk from villagers and pay them the right price.  To educate the villagers about milk and its quality  To make ‟Nandini‟ as a part of daily life.  To provide good quality of cattle feed, fodder, veterinary properly and in an efficient manner.  To see that the DCS‟s are carrying out their activities properly and in an efficient manner.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 24
  25. 25. Karnataka Milk Federation- DharwadObjectives of DMU:  Providing hygienic and good quality of milk to the consumers.  To build the economic strength of the milk products in villages.  To eliminate middlemen‟s in the business so that the milk products receive there appropriate share of bread.  To educate the villages 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 DMUThe milk collected at DCS‟s is brought to the center thought carries trucks etc. The Qualityand quantity of milk bought is checked at the Reception center by a supervisor.A sample of milk is taken and is tested in a laboratory for fat content, Solid Not fat (SNF)acidity etc. As the milk is at room temperature is to be brought down to 40 c to 50 c. so that it maycheck the growth of bacteria. To ensure this milk is passed through a chilling chamber wherethe milk is chilled. Its temperature is bought down and then the milk is stored in a tank called as ‟Ram MilkTank‟ From this tank milk is pumped to a pasteurizing cell where the milk is heated up to 720c and 15 seconds, so that all the bacteria and microorganisms may be killed and then the milkis simultaneously cooled to 40 C to 5o C and is store in a „Pasteurized Milk Tank‟ From herethe milk is separated according to the requirement of production of different types of milkand the remaining milk is used for manufacturing milk products.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 25
  26. 26. Karnataka Milk Federation- DharwadNature of business carriedProcuring and marketing of milk production and sale of milk products.VISION OF THE DMU: Cleanliness Total quality maintenance Discipline Co-operation. Transparency.QUALITY POLICY OF DMU:To ensure pure, hygienic milk and milk products through continuous improvement of qualitystandards.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 26
  27. 27. Karnataka Milk Federation- Dharwad PRODUCT PROFILE KMF, Dharwad product the following milk and Milk Products. HOMOGENIZED TONED MILKKarnataka‟s most favorite milk, Nadine Toned FreshAnd pure milk containing 3.1% FAT and 8.5% SNF, Available in500ml and 1tr packs.Price-26 Rs per liter SHUBHAMBuffalo‟s milk, 100% pure pasteurized processed and packedHygienically, this milk has 4.6%fat and 8.5%snf. Available in 5ooml and1ltr, and also Available in 5ltrs packs for marriages, and other Functions.Price-30 Rs per liter FULL CREAM MILKFull cream milk, containing 6% fat and 9% SNF, Rich, creamierTastier milk, ideal for preparing home-made sweet & savories.Available in 500ml and 11trs packs. HOMOGENIZED COW MILK Nandini homogenized milk is pure milk. This is homogenizedAnd pasteurized, consistent right through, it gives you more cupsOf tea or coffee and is easily digestible. Available in 500ml and 1 lter packs.Price- 28 Rs per liter Fat3.6% and SNF 8.5%.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 27
  28. 28. Karnataka Milk Federation- Dharwad NANDINI SET CURDSA Nandini curd made from pure milk, its thick delicious Giving youall the goodness of homemade curds. Available in 200gms and500 gms sachet. MILK POWDEREnjoy the taste of pure milk! Skimmed milk powder made formpure milk, processed and packed hygienically. Available in100gms,200mgs,500gms, 1kg& 25kg Pack. BUTTERRich, smooth and delicious, Nandini butter is made out of freshPasteurized cream, rich taste, smooth texture and the rich purityof cow‟s milk makes any preparation a delicious treat. Available in100gms (salted), 200gms and 500gms cartons both salted andUnsalted PEDHANo matter what you ate celebrating! Made from pure milk,Nandini peda is a delicious treat for the family. It will be store atRoom temperature approximately 7days, Available in 250gms packcontaining 10 pieces each. GHEEA state of purity, Nandini ghee made from pure butter. It is freshand pure with a delicious flavor, hygienically manufactured andpacked in a special pack to retain the goodness of pure ghee. Shelflife of 6 months at ambient temperature. Available in 200ml,500ml, 1000ml sachets, 5ltrs tins and 15kegs tins..ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 28
  29. 29. Karnataka Milk Federation- Dharwad GOOD LIFE MILK Cows pure milk, UHT processed, bacteria free in a tamper-proof tetra- fino pack which keeps this milk fresh for 90 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 bacteriafree in a tamper proof tetra fino pack which keep the milk fresh for 60dayswithout refrigeration until opened. At present the milk is being directly homedelivered on request. Available in 500ml pack. SLIMCows pure milk, homogenized, Skimmed. UHT processed milk bacteria free ina tamper proof tetra-fino pack which keep the milk fresh for 60 days withoutrefrigeration until opened. Nandini Good life slim skimmed milk is 99.5% fatfree.Available in 500ml Fino and in 200ml Bricks at premium stores across thestate. 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 isaffordable to all sections of people.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 29
  30. 30. Karnataka Milk Federation- Dharwad MYSORE PAKFresh 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 preservefreshness. Can be kept for 7 days.Advised to consume fresh to enjoy its excellent taste. GULAB JAMOON MIXGreat way to those soft and juicy jamoon treats at home! Nandini GulabJamoon Mix is made from Nandini skimmed milk powder, maida, soji andNandini Special Grade Ghee.Available in 100gms and 200gms standy pouch with a five layer foillamination. Shelf life of 6 months. PANEERPure and tasty dishes with Nandini Paneer! A fresh, nutritive product madeby coagulating pure milk, it is an excellent source of milk protein. Nandinipaneer is ideal for vegetarian dishes such as mutter paneer, sag paneer andvarious other dishes.Refrigerated storage is preferable. Available in 200gms pack, specially packed in a fivelayer film and vacuum packed to preserve its quality. Bulk packings are also available. FLAVOURED MILKSterilised flavoured milk, a nutritious and healthy drink and an all-seasonwholesome drink available in five different flavours - pineapple, rose, badam,pista and natural orange. A part from refreshing energy. Available in 200mlADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 30
  31. 31. Karnataka Milk Federation- Dharwad ICE CREAM Nutritious, delicious creamy ice cream is manufactured at ISO9002/HACCP certified Mother Dairy modern plant. The range includesVanilla, Strawberry, Pineapple, Mango, Chocolate, Butter scotch, KesarPista, Orange & Mango Candies, Mango & Raspberry Dollies, Chocobarand 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 withalmond, edible starch, saffron, skimmed milk powder and cane sugar togive you the ideal Badam delight.Available in 200 gms. PP boxes, cover shrink wrapped to offer betterquality and also to prevent pilferage Shelf life of 6 months under room temperature. KHOVAKhova is prepared out of fresh milk. It is an ideal base to prepare delicioussweets at home like peda, Gulab Jamoon, Kalakand, Burfi, Gajar Halwa andthe like. Nandini Khova gives you a high nutritive value with largequantities of muscle building proteins, bone forming minerals and energygiving fat and lactose.To be kept under refrigerationAvailable in 200 gms vaccum packed in a special five layer pouch filmKhova is also available in bulk pack for marriages and other functions CURDNandini Curd made from pure milk. Its thick and delicious.Giving you all the goodness of homemade curds.Available in 200gms and 500gms sachet.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 31
  32. 32. Karnataka Milk Federation- Dharwad Area of operation - Regional Ownership patternDMU builds and runs under the co-operative institutions such as District Co-operative Society.(DCS) National Dairy Development Board.(NDDB)Competitor’s of information.DMU has various competitors in the milk products market such as Krishna Arokya Spurthi Adhitya Bharath DairyInfrastructural facilities,Infrastructural facilities of DMU are as follows. Security facilities. Canteen facilities. Shifts facilities-3shifts per day. Heat allowance Cold allowanceAchievements or awards DMU has got ENERGY SAVING award for the production activities.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 32
  33. 33. Karnataka Milk Federation- DharwadFuture growth and prospects  Procuring and selling 1 lack litters per day.  Preparing for ISO-9001 certification.  Marketing quality improvement.  Developing HACCP-hazards Analysis and Critical Control Points.  Getting export Grade milk powder.Input required per day:  Milk procurement up to 155000 liters  5 to 6 lakh liters of water  10,000 units of electricity  4 to 5 tones of coal  Generator in case of electricity failure and manpowerDepartment of DMU1. Purchasing Department2. Quality Control Department3. Production Department4. Procurement and Input Department (P & I)5. Finished goods and materials storage Department (FGS)6. Stores Department7. Sales and Marketing Department8. Finance and Accounts Department9. Administration DepartmentADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 33
  34. 34. Karnataka Milk Federation- Dharwad A) Organization structure President Director Director Director Director Director (Govt) (Govt) (DCS) (NDDB) (Society) MANAGING DIRECTORProcurement Product process Marketing Admn Finance Dept Dept Dept Dept DeptTransport Quality FGS & Account & MIS Control Stores Purchase ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 34
  35. 35. Karnataka Milk Federation- DharwadDharwad Milk Union:STATUS A Co-operative society registered under the Co-operative Act 1959.NATUREOF BUSINESS Procuring & Marketing of Milk Production & Sale of Milk Products.SHARE CAPITAL 3 crore Approx.PLANT CAPACITYMILK CHILLING CENTER GadagAND CAPACITY Haveri Hirekerur Rona SrisiKARWAR PACKING The milk in bulk is sent for packing and distribution atUNIT Karwar which supplies and need of karwar, Gokarna, Honnavar, bhatkal, Murudeshwar.SALES OF MILK 90,000 LPDAREA OF OPERATION Dharwad,Haveri,Gadag, Uttar Karnataka,BOARD OF DIRECTORS Elected Member 8 Ex-Officers 5 By Govt 3TOTAL WORKERS 289 WorkersLOCATION Lakkamanahalli Industrial Area,DharwadDEPARTMENT 9BRAND NAME NandiniPRODUCTS Milk Toned Milk, Standard Milk, Shubam Milk Milk Product Butter,Ghee,Pedha,Curd,Lassi,Panner,Milk PowderCO-OPRATIVE SOCIETIES 760 SocietiesAT VILLAGE LAVELADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 35
  36. 36. Karnataka Milk Federation- Dharwad PROCUREMENT AND INPUT DEPARTMENT The union carries on procurement by setting up co-operative societies at village level.Later milk is collected in the chilling centre. Milk collected from the milk centre, is firsttested. There is milk –testing equipments for this purpose. Then a survey on availability oftransportation facilities and productive capacity of villages are conducted. If the marketablesurplus is more than 150 liters pre day, a society is formed. Further 10 promoters are selectedfrom the village and are given the responsibilities of collecting the capital for the society byselling shares. Procurement is done twice a day and payment is made on the basis ofpercentage of content and SNF in the milk. After this, milk is sent to Union else chilling center, whichever is near. At thechilling center, milk is chilled up to 4 degree Celsius. Later this chilled milk is sent to Unionin Insulated Tankers for further processing. The main function of this department is toprocure 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 providedare: 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 cattleADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 36
  37. 37. Karnataka Milk Federation- Dharwad THE STRUCTURE OF P & I DEPARTMENT ManagerProcurement wing Technical wingDeputy Manager Deputy ManagerAssistant Manager Assistant Manager Extension officer Clerks Helpers ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 37
  38. 38. Karnataka Milk Federation- Dharwad PRODUCTION AND PROCESS DEPARTMENT The main objective of this department is to follow up production schedule as per planand to maintain close and co-ordinate relationship with other department and ensures toupgrade the technical efficiency of production. Milk, as it is highly perishable product has toprocessed immediately to avoid spoilage milk respect to its flavor, texture and taste Production department is well equipped and has various types of highlysophisticated machines imported from Sweden and Denmark. Once the milk is received fromp & I department, it is first weighed with the help of weighing bowl. Later, it is poured indump tank. Sample testing is made through lactometer reading and other tests. The fat andSNF content of each sample of milk is accessed the cow and buffalo‟s milk are separatelyreceived and sent to the production section separately through two different stainless steelpipes. Later, the raw milk is passed through plate chiller of variable capacity where it is cooledup to 4-5 degrees Celsius. This cooled raw material is further stored in a silo of 30,000 literscapacity. PURPOSE OF CHILING This is done to avoid the growth of micro organisms, which are responsible forspoilage of milk and bitter taste. The milk, which is stored in silos, is pumped throughpipeline to the balance tank, which helps to maintain the steady speed flow of milk in thepasteurization machine. In, DMU, there are 2 milk pasteurization machine and 1 Creampasteurization machine.PURPOSE OF PASTEURIZATION Pasteurization is a process where milk is heated to high temperature and cooledinstantly, to destroy any microorganism. The pasteurized milk will stored in pasteurized milksilos and then sent to pre-packing section. Package is done in 500ml and stored in coldstorage at 7 degree.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 38
  39. 39. Karnataka Milk Federation- DharwadWork flow model. (End to End):Production process has the following work flow model. DCS Fresh Liquid Milk Sample Testing FAT and SNF Chilling Storing Pasteurization Separation Homogenization Storing Packing DispatchingADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 39
  40. 40. Karnataka Milk Federation- Dharwad PASTEURIZATION OF CREAM: The milk in bulk is taken to the cream separator. Here, the cream is separated. Thecream is passed through cream pasteurization Unit. This cream is sent to Butter section. Themilk with no fat is skimmed milk. This skim milk is pumped back to pasteurization Unit andheated to72 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 toPasteurized milk.CURDS: Raw milk is heated to 90 and allowed to cool to 30. Later culture is added to it andpacked; the curd is formed in the packet itself. It is stored and packed in 200gms and 500gms.BUTTER: The cream, which is stored in cream refining tank, is taken to the churning sectionwhere it is churned. Here butter fat and butter milk are separated.The vacuum pump removesexcess of moisture and butter comes out of continuous butter making machine (capacity-1500kgs/hour).Butter is packed in 100, 200and 500gms and also in 10, 25 gms, these arestored in deep freezer 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 is melted andis brought Ghee Boiler. Here it is heated to 116-117 degree Celsius for 15 minutes so that theresidue is allowed to settle down and Ghee is passed setting tank through clarifies. LaterGhee is allowed for cooling (at 30 to 40) and packed in Tin of liter, 500ml and 200ml packand kept in the cold storage.PANEER: If there is excess of milk, then, paneer is made. The milk is heated to 90 for 15 to 20minutes. Glacial acetic acid is added to milk, and then milk is strained through fine muslincloth. The solid portion is retained and put in water and then it is put in chilled water and leftover night. Later it is packed and stored in cold storage.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 40
  41. 41. Karnataka Milk Federation- DharwadMILK POWDER: When there is excess of milk. Milk powder is made the capacity of the powder plant is12tons. There are two sections-Evaporator and spray driver through which milk is convertedto Milk powder. In Evaporator, milk is boiled for 55 at high vacuum, Milk is concentrated todrier 40-45 of milk is solid, moisture is removed and the milk powder obtained consists of4% moisture.PEDHA: Dharwad is famous for its delicious pedhas DMU has separate pedha section. About 80liters (depends upon the demand ) is heated continuously for 3 hours till the milk is semi-solid, later sugar and other ingredients are added and stirred continuously on low flame. Laterit cooled and it is shaped in small balls and packed.The milk produced here is differentiated by the content of FAT and SNFTYPE FAT SNFToned 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 MOISTUREButter 83% 1% 16%Ghee 99.8% - 0.2%Paneer 20% 30% 50%ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 41
  42. 42. Karnataka Milk Federation- Dharwad PRODUCTION DEPARTMENT The production department has the following structure. MANAGER DAIRY DEPUTY MANAGER OFFICE STAFF ASSISTANT MANAGER TECHNICAL ASSISTANT ASSISTANT OFFICER (ACCOUNTS) (STORES) SENIOR CLERK TYPIST SUPERVISOR JUNEIOR SUPERVISOR DAIRY DAIRY DAIRY OPRETORS TECHNICIAN WORKERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 42
  43. 43. Karnataka Milk Federation- Dharwad QUALITY CONTROL DEPARTEMENT In DMU, at every stage, care is taken to ensure that the customer gets the products,which have a very high quality. Hence there is a separate department called QualityDepartment. Where the quality testing is done, there is a separate laboratory for this. Qualitycontrol is very essential as to maintain the freshness of the milk. All the containers, pipes andother equipments are washed with hot water before starting off with new production. Thereare 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 standardizationand the last test before packing, The other tests conducted are. TESTS REASONTemperature Should be below 5 degreesClot on Boiling If mill curdles soon after boiling milkAcidity Test To test the extent of acidityAlcohol Test To check the heat stability of milkLactometer To check the density of milkFast test Percentage of fat determinedSNF Test Percentage of SNF determined for pricingADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 43
  44. 44. Karnataka Milk Federation- Dharwad QUALITY CONTROL DEPARTEMENT STRUCTURE DEPUTY MANAGER ASSISTANT ASSISTANT MANAGER MANAGERQUALITY ASSISTANT QUALITY ASSISTANT OFFICER OFFICER (CHEMICAL) (BACTIRIOLOGY) LAB QUALITY QUALITY ASSISTANT ASSIATANT ANALYST ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 44
  45. 45. Karnataka Milk Federation- Dharwad MARKETING DEPARTMENT Marketing Manager Deputy Manager Assistant Manager Marketing Marketing Superintendent Technical officerDevelopment officer Development officer Marketing Marketing Assistant Assistant ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 45
  46. 46. Karnataka Milk Federation- Dharwad STARAGETIES OF THE MARKETING DEPARTMEN  Visit to all routes of individual points by going in a routes distribution vehicle for contact with all agents.  Aims to conduct 5 Consumer Awareness Program and various Seminars.  Aims at conducting agents‟ meetings.  Aims at setting 10 Exclusive NANDINI Milk Parlors.  Aiming to set up new sales promotional and advertisement activities.  Women association programs.  Joining with other programs.Strategy Implementation system:Marketing strategy like sales promotional and advertisement activities of DMU are asfollows.  Press advertisements  Hoardings  Wall paintings  Rental for KSRTC Buses  Leaflets  Banners  Vehicles paintings and own hoarding paintings  Pole ads and Flute boards  Rate display boards  Milk carry bags  Calendar and greetings Exhibition, drawing and consumer mela.Further the Marketing Department has two sub-department  STORES  FINISHED GOODS STOREADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 46
  47. 47. Karnataka Milk Federation- Dharwad STORES DEPARTEMENTThe Stores Department in DMU follows the Cordex System (Coded Control System). A cardis maintained for each item and a number is allotted. The card attached to each articleconsists of amount balance, date of issue, purchase etc. this is later recorded in separatedledger book. The inventories are of different kind ranging from mechanical, spares, packingitems to animal drugs, 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. The structure of this department is as shown. STORES SUPPERIDENT STORES ASSISTANT (FDS) STORES ASSISTANT (GR-II) HELPERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 47
  48. 48. Karnataka Milk Federation- Dharwad FINISHED GOODS STORES: This Department acts as an interface between production and Marketing Department. Itis concerned with manatees of finishes goods connected records. It receives all the finishedgoods and issues the stock to marketing department as per indents. It ensures that the goodsare maintained properly with respect to quality.Accounts are maintained and daily and daily and monthly report is submitted to theproduction. Marketing and Finance Departments, as the products as perishable First-In-FirstOut method of inventory is followed. The FGS Department has the following Structure; ASSISTANT MANAGER MARKETING ACCOUNT ASSISTANT ASSISTANT DAIRY OPERATOR DAIRY WORKERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 48
  49. 49. Karnataka Milk Federation- Dharwad FINANCE DEPARTMENT This Department is responsible for keeping all the inward and outward flow of moneyof union. It prepares budget every year and financial rules for receipts all payments areframed. The functions of these departments are; 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. THE STRUCTURE OF FINANCE DEPARTMENT IS AS SHOWN DEPUTY MANAGER ASSITNANT MANAGER ASSISTANT ACCOUNT OFFICER ASSISTANT ACCOUNTADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 49
  50. 50. Karnataka Milk Federation- Dharwad PURCHASE DEPARTMENT It is a sub-department, which comes under Finance Department. The main work ofthis department is to purchase various materials required by different department. Afterascertaining the stock position by stores department and indent is sent by differentdepartment duly approved by the Managing Director. This department act to purchasematerials.It also maintains records of all the suppliers calls for Tenders, quotation etc. Quotations withlowest rate are sanctioned. Purchase up to 50,000 can be made by Purchase Department.If thepurchase amount is more than 50,000, then the approval of Managing Director.THE STRUCTURE OF PURCHASE DEPARTMENT IS AS FOLLOWS PUCRCHASE OFFICER PURCHASE SUPERDIENT ASSISTANT PURCHASE OFFICER HELPERSADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 50
  51. 51. Karnataka Milk Federation- Dharwad ADMINISTRATION DEPARTMENT: The Administration Department controls the overall functioning of the organization. The Organization consists of the following three levels. a. Managerial cadre includes Managing Director, Deputy Manager, and Assistance Manager. b. Supervisory level included technical officers and supervisors. c. Worker level includes labors helpers. The department has the following structure: Deputy Manager Asst. Manager (Board) Asst. Manager (Personnel) OZPPppppAdmn Superintendent Admn Superintendent Admn Assistant Time Canteen Security ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 51
  52. 52. Karnataka Milk Federation- Dharwad The Administration Department also handles Canteen, Security and Time KeepingMachine.CANTEENThere is a canteen in the premises itself. The employees are provided lunch, tea etc., atreasonable rates. The canteen is handled by the canteen-In charge.TIME KEEPERThis department records the working hours of the employees. Time machine shows the entrytime and exit time of each employee. The workers divided into different shifts control theworking of the department. Each employee is given a punch card, whenever an employeeenters the premise he has to punch the card in the time machine and before living the premisehe has to do the same. Based on this attendance, canteen bills are charged, wages are fixedand deduction are made.SECURITY DEPARMENT Dharwad milk union occupies 25 acres of land the whole premise is been guarded bythe security personnel. The security people work in three shifts. All the vehicles are checkedbefore entering the premise. The department is also maintains separate registers like store-inregister, attendance register etc.SKILLS The skills here refers to the various skills the workers have here the workers arefurther Divided into three categories, This first category contains the people who are in thetop management level the second category consists of the supervisor‟s office assistants etc.The Third category consists of the supervisor‟s office assistants etc. The third categoryconsists of the workers at the operational. The first category consist of the people who are in the decision making process in KMFthese people are highly qualified few Deputy Managers are to industries like IRMA, Ananddairy for Training. The second category is related to office work and fieldwork. These people are alsotrained in Computer Applications, secretarial skills, Accounting skills etc. The third level people consist of the workers who are actually into the operation thesePeople are also trained into fields like checking the quality of milk processing packing etc.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 52
  53. 53. Karnataka Milk Federation- DharwadTRAINING SYSTEM The Union emphasizes on training the employees. Most of the training given tothe employees here are On-the-Job training and few Off-the-Job Training.  Procurement and Technical Input Training (NDDB)  PG Diploma in Rural Management  Basic Computer Applications.  Data Base Administrator  Finance Training for non-Finance Officer  Co-Operative management Training Programs  Clean Milk Production TrainingSTYLESA) DMU has follows Top to Bottom or Top down style system.B) The Styles of the organization is said to follow the participative type that is themanagement cadre follow the participative type of administration. The fact is that for amanufacturing firm like the KMF, Dharwad this type of administration is necessary The Indicators of the Style are: Follows Orders, rules and procedure Is always Reliable, Dependable Watches DetailsPrefers to write out Communications Is Rational, Logical, Self-Controlled, Fair and Firm, Decision making parameter for day to day operations, The marketing department provides information to production departmentregarding Daily requirements of the sale of the milk and milk products based on themarketing demand, Later the production department will take the decision about productionactivities.STRATEGIES The Dharwad Milk Union has the following set of strategy, which will be formulatedEvent year. The present year has the following strategies. The strategies are formulated withthe help of KMF and NDDB and the union members. Below are the strategies set for thisyear.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 53
  54. 54. Karnataka Milk Federation- Dharwad COMPETITOR PROFILEADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 54
  55. 55. Karnataka Milk Federation- DharwadMajor competitor in Karnataka for K.M.FHATSUN (Arokya)Welcome to the Hatsun world, India‟s largest private dairy. From a modest ice creammanufacturer to one of the leading names in India‟s dairy sector in just a span of threedecades, The company was in-corporated on 4th march 1986 under the name and style ofhatsun foods private ltd. The name of the company was changed hatsun milk foods private ltdand subsequently converted in to a public ltd company in the year 1995. the present name ofthe company was adopted in the year 1998 . The company was found and promoted by Mr. R.G Chandramogan and his associates.R.GChandramogan, Initially 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 a public ltd co. The company is the leading private dairy industry in India. the co enjoys market shareof 60%&35%for its ice creams in tamilnadu & south India respectively .the market share forits milk & milk based product is 45% in the entire south India the co plant are situated in redhills (Chennai),Salem and kancheepuram in tamilnadu and belgum in Karnataka . The co is the first in south India to introduce homogenized milk, which is consumed allover the world .the co was proved to introduced 100% pathogenic bacteria removed milk, thefirst of its kind in India bacteria removed milk is produced by bacteria clarification processusing german technology which physically removes 100% pathogenic bacteria from milk thistechnology helps in preserving the natural flavor and taste of from fresh milk. It started as a creamy dream in 1970: Arun icecream, the rich, delicious brand that hascaptured the heart of millions of icecream lovers. With over 70 delightful varieties it is theNo.1 selling ice cream in south india . Arun ice creams is manufacture at the most modernplant its kind in Chennai. From the ingredients, to the packing and the distribution stringentquality control is maintained at every stage which has made Arun ice creams the first icecream brand in India to win the 9001 certification for quality and world class manufacturingfacilities. Arun ice cream reaches the customer through the largest network of a exclusiveparlours in India.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 55
  56. 56. Karnataka Milk Federation- DharwadSalesThe combined sales of arokya and komatha is 7,5000 liters a day. And hastsun is fast nearingits objective 1 million liters a day.Hastun quest for quality starts at procurement, two times a day, 365 days of the year at over athousand collection centers, from more than a hundred thousand farmers hastsun sources itsmilk with on ever watchful eye, always keen on quality. Its an enthusiastic and bustingactivity when milk its takes first step in its journey to the consumers homes.Products  AROKYA  KOMATH  SANTHOSH  ARUN (Ice cream)OTHER COMPETITORS  SPURTHI  BHARTHI  ADITHYA  SRI KRISHNAADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 56
  57. 57. Karnataka Milk Federation- Dharwad SWOT ANALYSISADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 57
  58. 58. Karnataka Milk Federation- Dharwad 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.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 58
  59. 59. Karnataka Milk Federation- Dharwad Project OverviewADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 59
  60. 60. Karnataka Milk Federation- Dharwad INTRODUCTION OF PROJECT Introduction This project is carried out in, Karnataka co-operative Milk Federation Hubli. Theywork for the purpose of giving a quality and fresh milk for customer without adding anychemicals. Direct formers (cow) to customer. With a fresh good quality milk.The study has been under taken to find out the effectiveness of distribution channel aboutK.M.F Dharwad Milk and other products.The area of study is limited to  Hubli  DharwadThe study has been done to ensure that this would help and organization to increase theirsales and ultimately profits.SCOPE OF THE PROJECT The project was exclusively conducted for dealers and agents for consumer durables.The time frame of this project lasted about 2 months.Project title “A Study on Distribution Effectiveness in Hubli & Dharwad For K.M.F”ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 60
  61. 61. Karnataka Milk Federation- DharwadAIMS & 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.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 61
  62. 62. Karnataka Milk Federation- Dharwad METHODOLOGY In this project the questionnaire was designed for dealers and agents of K.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 for collecting thedata. 1. Primary data 2. Secondary data.Primary data is collected through survey method i.e. by preparing questionnaire andinterviewing persons directly and by interacting with the marketing manager, dealers, agentsand other staff members who all are involved in distribution network.Secondary data, which is secondary in nature i.e. already, collected information. Thissecondary data is collected through- Company broachers Books Magazines News papers InternetADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 62
  63. 63. Karnataka Milk Federation- Dharwad Analysis and interpretation From the required data collected from the dealers and agents by way of questionnairesand personal interview, on the basis of collected data can be analyzed and based on thisanalysis, conclusion and recommendations was formulated. Research Approach: Survey MethodSampling Process: The process of drawing a sample from a large number ofAgents and dealers is called sampling The 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 distribution effectiveness onNandini Milk and other products for agents and dealers from the various part of the HubliAnd Dharwad.Sampling size:The sampling size consist the 100 agents, dealers for K.M.F products invarious parts of Hubli and Dharwad.Sampling technique:Probability judgment techniques Systematic sampling: The most common form of systematic sampling is an equal-probability method. In this approach, progression through the list is treated circularly, with areturn to the top once the end of the list is passed. The sampling starts by selecting an elementfrom the list at random and then every kth element in the frame is selected, where k, thesampling interval this is calculated as,ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 63
  64. 64. Karnataka Milk Federation- DharwadPopulation size:Hubli-Dharwad City Total Male FemalePopulation 943,857 475,980 467,877Literates 736,506 389,290 347,216Children (06) 99,989 51,293 48,696Sex ratio 1:0.98 983 1000ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 64
  65. 65. Karnataka Milk Federation- Dharwad DISTRIBUTION CHANNELADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 65
  66. 66. Karnataka Milk Federation- Dharwad Distribution Distribution is one of the four aspects of marketing. A distribution business is themiddleman between the manufacturer and retailer or (usually)in commercial or industrial thebusiness customer. After a product is manufactured by a supplier/factory, it is typically storedin a distribution companys warehouse. The product is then sold to retailers or customers. Theother three parts of the marketing mix are product management, pricing, and promotion.Traditionally, distribution has been seen as dealing with logistics. The Distribution ChannelFrequently there may be a chain of intermediaries; each passing the product down the chainto the next organization, before it finally reaches the consumer or end-user. This process isknown as the distribution chain or, rather more exotically, as the channel. Each of theelements in these chains will have their own specific needs; which the producer must takeinto account, along with those of the all-important end-user.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 66
  67. 67. Karnataka Milk Federation- DharwadChannelsA 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)Vertical MarketingThis relatively recent development integrates the channel with the original supplier -producer, wholesalers and retailers working in one unified system. This may arise becauseone member of the chain owns the other elements (often called `corporate systemsintegration); a supplier owning its own retail outlets, this being forward integration. It isperhaps more likely that a retailer will own its own suppliers, this being backwardintegration. (For example, MFI, the furniture retailer, owns Hygena which makes its kitchenand bedroom units.) The integration can also be by franchise (such as that offered byMcDonalds hamburgers and Benetton clothes) or simple co-operation (in the way that Marks& Spencer co-operates with its suppliers).Alternative approaches are `contractual systems, often led by a wholesale or retail co-operative, and `administered marketing systems where one (dominant) member of thedistribution chain uses its position to co-ordinate the other members activities. This hastraditionally been the form led by manufacturers.The intention of vertical marketing is to give all those involved (and particularly the supplierat one end, and the retailer at the other) control over the distribution chain. This removes oneset of variables from the marketing equations.Other research indicates that vertical integration is a strategy which is best pursued at themature stage of the market (or product). At earlier stages it can actually reduce profits. It isarguable that it also diverts attention from the real business of the organization. Suppliersrarely excel in retail operations and, in theory, retailers should focus on their sales outletsrather than on manufacturing facilities ( Marks & Spencer, very deliberately providesconsiderable amounts of technical assistance to its suppliers, but does not own them).ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 67
  68. 68. Karnataka Milk Federation- DharwadHorizontal MarketingA rather less frequent example of new approaches to channels is where two or more non-competing organizations agree on a joint venture - a joint marketing operation - because it isbeyond the capacity of each individual organization alone. In general, this is less likely torevolve around marketing synergy.RetailersLike for wholesalers, it may be that you only use retailers if you manufacture your ownproducts: again, evidencing the larger smaller business. Retailers can promote your productby making consumers aware of its availability and by passing on technical information thatcould encourage the sale. Because there are thousands of retailers located all around the country, they are anexcellent intermediary for distributing your product to a wide geographical range ofconsumers. Today, many retailers prefer to buy their products directly from producers (you)instead of going through wholesalers: this is typical of supermarkets. By selling directly toretailers, the added expense of transportation is the only issue. Small businesses account for a high proportion of retailers and so they can often findthemselves at the end or in the middle of a distribution channel, where their own channel ofselling to a consumer would be direct.Using Multiple Channels of DistributionWhen analyzing which distribution channel is best for your business, you should not restrictyourself to one channel, but instead adopt a number of channels that are suitable for sellingyour product/service efficiently and effectively (if necessary).For example, a business may use a retailer to sell their product and at the same time, usedirect mail and telemarketing to further encourage sales: there are a number of feasiblecombinations.Choosing the Right Distribution ChannelThere are several factors affecting how you may decide on the most appropriate distributionchannel(s). A few of these are highlighted below:ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 68
  69. 69. Karnataka Milk Federation- DharwadProfit 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 keyProduct/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 audienceTelemarketingSelling your product/service through telemarketing is becoming increasingly popular. Similarto direct mail, telemarketing allows sales to be made on a local, national and global scale,although the costs will increase with the time and distance of phone calls. Extra skills mayalso be required creating the need for more staff. Alternatively, a professional service can beconsulted to carry out the task: with an increased cost and/or commission.Agents/BrokersAn agent or broker will help sell your product/service, but will not take ownership of whatthey are selling at any time. They usually work on commission taking a percentage of thetotal sales made by themselves. An agency or brokerage will sell your product or service, forADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 69
  70. 70. Karnataka Milk Federation- Dharwadexample insurance, tickets for entertainment, accommodation, etc. This can be directly to theconsumer or to retailers and wholesalers.Agents/brokers can sell your product on a scale than extends from your business premisesand are very useful for expanding your business into foreign markets.Perhaps the most common example of an agent would be a travel agency. They never ownthe holidays or credit the full amount of the sale to their business. Instead, they act as a linkbetween the holiday resort and the consumer, taking a commission on the sales.WholesalersIt may be that you only sell to a wholesaler if you manufacture your own products: possiblyevidencing a larger small business. If this is the case, a wholesaler can be used to distributeyour products reaching a potentially large number of consumers. The main function of awholesaler is to provide a link between the producer (you) and the retailer. The advantage ofselling to a wholesaler is that they often buy in bulk, splitting the purchase into smallermanageable quantities for further selling to retailers.Once selling to a wholesaler, there are three ways that your product will reach the consumer.Firstly, the consumer will purchase directly from the wholesaler: this is the less commonroute 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 have strong links withquality retailers: research will help discover this fact. In addition, because they buy in bulk, itreduces the burden of on-site storage at your premises reducing overhead costs. Further,wholesalers will also take away the burden of transportation, as they often have their ownnetwork of transport delivering goods directly to retailers, which would normally be yourresponsibility.The disadvantage of using a wholesaler to distribute your products is that they cannot marketyour products extensively. Further, because they buy in bulk, it is often you will sell at a pricemuch lower than the final retail price. Therefore, the wholesaler will take some of the profitbecause they will sell on your products in smaller quantities at a higher price.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 70
  71. 71. Karnataka Milk Federation- Dharwad DHARWAD MILK UNION DISTRIBUTION CHANNELADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 71
  72. 72. Karnataka Milk Federation- Dharwad PROMOTIONAL ACTIVITIES CARRIED OVER BY KMFPromotional activities are the activities conducted by the company which helps the companyto keep its customers informed about the product, any developments, and advancement in theproducts. The promotional activities help the company to place its brand or product on the topof the mind of the customers. These activities depend on the nature of the product, the targetcustomers, the message that the company wants to convey to its customers etc…KMF found the need for adopting the promotional activities in order to create awarenessabout the product which intern lead to increase in sales and help the company to increase itsmarket share. The company has undertaken various promotional activities in order to increasethe market share of its Milk and Milk products.The following are the major promotional activities carried over by KMF:Advertisements Magazines Hoardings Ad boards Banners Dealer displays Television Radio etc…Awareness campaigns Door to door Mass campaignsRTISEMENTS:Now a day‟s advertisement is the well known, most effective, and common means ofpromotional activity. Advertisement is a complex form of communication that operates withobjectives and strategies leading to various types of impact on consumer thoughts, feelingsand actions. It is the best way to keep the customer updated and give an introduction to thenew customers. Also it helps the company in keeping its brands or products on the top of theminds of the customers.ADHICHUNCHANAGIRI INSTITUTE OF TECHNOLOGY-CHIKMAGALUR Page 72

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