Mallu

KARNATAKA MILK FEDRATION

EXECUTIVE SUMMARY


EXECUTIVE SUMMARY
INTRODUCTION
Karnataka milk federation was setup in 1974 on the AMUL pattern it is
the third largest co-operative federation in India and first in south India. There
are 17 unions in Karnataka.
The project is conducted to know the “distribution effectiveness in
Hubli-Dharwad for K.M.F” in Dharwad. As present market is highly
competitive, if one not reaches to ultimate customer other reaches and grabs
the opportunity. So an effort made by the company like manufacturing,
promotion etc. are gets wasted. So it becomes important to reach ultimate
customer 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 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 or
expanding business 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 small opportunities.

It becomes important to update to the market requirement to compete in
competitive world. So to know the market requirement we should have proper
information from the market. So I selected this project, which can serve the
specified information, which could help to the organization to improve the
distribution channel effectively in the market. So to serve better from the
existing one


Project 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.


METHDOLOGY
Sampling and data collection planning
From the required data collected from the retailers and agents by way
of questionnaires and personal interview, on the basis of collected data can be
analyzed and based on this analysis, conclusion and recommendations was
formulated.

Research Approach: Survey Method

Sampling Process: The process of drawing a sample from a large number of
agents and dealers is called sampling

The sampling process is broadly divided into three categories, they are

1. Sampling unit
2. Sampling size
3. Sampling technique

Sampling Unit: Sampling unit for study is conducted on distribution
effectiveness on Nandini Milk and other products for agents and dealers from
the various part of the Hubli And Dharwad.

Sampling size: The sampling size consist the 100 agents ,dealers for K.M.F
products in various parts of Hubli and Dharwad.

Sampling technique:

 convenience
 Non Probability.


Source of Data collection

1. Primary data
2. Secondary data.

Primary data is collected through survey method i.e. by preparing
questionnaire and interviewing persons directly and by interacting with the
marketing manager, dealers Retailers and other staff members who all are
involved in distribution network.

Questionnaire will adapt.
1. Open-ended question.
2. Multiple questions
3. Dichotomous questions

Secondary data, which is secondary in nature i.e. already, collected
information. This secondary data is collected through-

• Company broachers

• Books

• Magazines

• Internet


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 Distribution
effectiveness in Hubli & Dharwad for K.M.F”. The sampling size of the
survey is 100. In this survey parameter like commission, problems of agents
and expectations of agents and dealers expectations from the organization,
distribution effectiveness, delivery timing and satisfaction levels of dealers
and agents are analyzed.

The collected data from the survey which is formulated in table and graphical
manner .which is help for analyzing the data. And also help to provide base for
giving suggestions & recommendations.
The tool used for analysis is MS-EXCEL. The statuses of the parameters were
represented in the form of tables and pie charts.


CONCLUSION

Clearly Nandini milk is a long way to go before it becomes a major
player in south India in the perishable goods like Nandini milk and other
products. Its Brand image is the cutting edge to its marketing strategy. K.M.F
has its brand image from 30 years. The only thing K.M.F needs to develop
strong promotional activities which concentrating more in satisfaction of the
agents 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 and
retailers are proffered Nandini Brand milk only.

If the organization will give more commission and other promotional activities
like advertisement material boards and paint to shop and continues meet to
agents and retailers definitely it will become more market share in the
Karnataka.


FINDINGS IN RESEARCH

The market potential has immense significance in the field of
marketing, market can not ignore the market opportunities or the market to be
used that are prevailing and going to occur in the market, this is because
today’s market is basically competition oriented to out perform other and
capture large market share

As per the survey it clears the all the agents and retailers are getting the
complaints of Nandini milk products

As 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.


RECOMMENDATIONS

For any organization to survive in this competitive market the
company should adopt a distribution channel which will help not only the
organization but also its agents and retailers.

There fore the following points should be consider and adopt by the
organization 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.


LIMITATIONS OF THE PROJECT

Though 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


HISTORY OF MILK


History of Milk
Animal milk was first used as beverage at the beginning of animal
domestication. Goats and sheep were domesticated in the Middle East in 9000
BC. Goats and sheep were one of the first animals to be domesticated. Around
the 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. Dairy
products were first made in the Roman Empire around 100 BC. The use of
cheese and butter spread in Europe, parts of Asia and parts of Africa. Cattle
were then introduced to European colonies after the Age of exploration.
Background
Milk is a nutritive beverage obtained from various animals and consumed by
humans. 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 the
United States, and in many industrialized countries, raw cow's milk is
processed before it is consumed. During processing the fat content Of the milk
is adjusted, various vitamins are added, and potentially harmful bacteria are
killed. In addition 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 farm where they were produced. By about 1790,
population centers such as Boston, New York, and Philadelphia had grown
sufficiently to become an attractive market for larger-scale dairy operations.
To meet the increased demand, farmers began importing breeds of cattle that
were better suited for milk production. The first Holstein-Friedens were
imported 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 of
machines for processing milk were also developed. In 1856, Gail Borden


patented a method for making condensed milk by heating it in a partial
vacuum. Not only did his method remove much of the water so the milk could
be stored in a smaller volume, but it also protected the milk from germs in the
air. Borden opened a condensed milk plant and cannery in Wassail, New
York, in 1861. During the Civil War, his condensed milk was used by Union
troops and its popularity spread.

In 1863, Louis Pasteur of France developed a method of heating wine to kill
the microorganisms that cause wine to turn into vinegar. Later, this method of
killing harmful bacteria was adapted to a number of food products and became
known as pasteurization. The first milk processing plant in the United States to
install pasteurizing equipment was the Sheffield Farms Dairy in Bloomfield,
New Jersey, which imported a German-made pasteurizer 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 enacted laws requiring that all milk be pasteurized.
One of the first glass milk bottles was patented in 1884 by Dr. Henry
Thatcher, after seeing a milkman making deliveries from an open bucket into
which a child's filthy rag doll had accidentally fallen. By 1889, his Thatcher's
Common Sense Milk Jar had become an industry standard. It was sealed with
a waxed paper disc that was pressed into a groove inside the bottle's neck. The
milk bottle, and the regular morning arrival of the milkman, remained a part of
American life until the 1950s, when waxed paper cartons of milk began
appearing in markets.
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 liters). About 37% of this was consumed as fluid milk and cream,
about 32% was converted into various cheeses, about 17% was made into
butter, 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.


INDIAN DAIRY INDUSTRY


India: World's Largest Milk Producer
India has become the world's No. 1 milk producing country, with output in
1999-200 (marketing year ending March 2000) forecasted at 78 million
tonnes. United States, where the milk production is anticipated to grow only
marginally at 71 million tonnes, occupied the top slot till 1997. In the year
1997, India's 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 the
steady progress in recent years (see Table 1). Furthermore, the annual rate of
growth in milk production in India is between 5-6 per cent, against the worlds
at 1 per cent. The steep rise in the growth pattern has been attributed to a
sustained expansion in domestic demand, although per capita consumption is
modest - at 70 kg of milk equivalent.

World's 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)


THE FATHER
OF
“WHITE REVOLUTION”
IN
INDIA

The father of “White Revolution”


Dr. Verghese Kurien
Born on 26th November 1921

Dr.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, and represented his college at state level. After passing out
of the University, he joined the Tata Steel Technical Institute, Jamshedpur
from where he graduated in 1946

Instead of taking the charted course of managerial career at
Jamshedpur, Dr.Kurien competed and qualified at the all India level selection
for specialized studies in USA under government scholarship and passed the
Master of Science in Mechanical Engineering from the Michigan State
University with distinction.

When he came back to India, he was posted as a Dairy Engineer at the
government creamery, Anand, in May 1949. Around the same time, the infant
cooperative dairy, Kaira District Cooperative Milk Producers' Union Limited
(KDCMPUL), -- now famous as AMUL -- was fighting a battle with the
Polson Dairy which was privately owned. Young Kurien, fed up with being at
the government creamery which held no challenge, volunteered to help Shri
Tribhuvandas Patel, the then Chairman of KDCMPUL, to set up a processing
plant, which marked the birth of AMUL. The rest is history.


Dr. Kurien is a manager and institutional builder par excellence. He has
built dozens of institutions including the Institute of Rural Management,
Anand of which he is the founder Chairman. 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 dairy industry and the father of White Revolution ushered in by the
Anand-pattern dairy cooperatives established under the Operation Flood.

Dr.Kurien in his impressive career spanning over almost five decades
has been honoured by several national and international organisations. He has
been conferred honorary doctorate degrees by several universities in India and
Abroad. He has been decorated with the Padmashri (1965) Padmabhushan
(1966), Krishi Ratna Award (1986) and Padma Vibhushan (1999) by the
President of India. He has won many awards including the prestigious Ramon
Magsaysay Award for Community Leadership (1963), the Wateler Peace Prize
Award of Carnegie Foundation (1986), the World Food Prize Award (1989)
and the International Person 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, 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


I Too Had a Dream

Category: Non-Fiction
Author: Dr Verghese Kurien as told to
Gouri Salvi
Publisher: Roli Books

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. A man with a rare vision, Dr Kurien has
devoted 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 of
farmers were 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 their leader Tribhuvandas Patel, Dr Kurien
joined them. Since then there has been no looking back. The 'Anand pattern of
cooperatives' were so successful that, at the request of the Government of


India, he set up the National Dairy Development Board to replicate it across
India. He also established the Gujarat Cooperative Milk Marketing Federation
to market its products.

In these memoirs, Dr Verghese Kurien, popularly known as the
'father of the white revolution', recounts, with customary candour, the story of
his life and how he shaped the dairy industry. Profoundly inspiring, these
memoirs help us comprehend the magnitude of his contributions and his
multifaceted 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 such
a hold of me that I remained in this small, sleepy town of Anand for over fifty
years as an employee of farmers. I was never able to 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
this idea, hoping to enthuse young women and men to adopt my passion as
theirs. I have been fortunate that there have been many who took up the
challenge."


NATIONAL DAIRY
DEVELOPMENT BOARD

About NDDB
The National Dairy Development Board was created to promote,
finance and support producer-owned and controlled organizations. NDDB's
programmes and activities seek to strengthen farmer cooperatives and support
national policies that are favourable to the growth of such institutions.
Fundamental to NDDB's efforts are cooperative principles and the Anand
Pattern of Cooperation.


PHILOSPHY

Cooperation is the preferred form of enterprise, giving people control over the
resources 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 and
managing their own institutions
Progressive evolution of the society is possible only when development is
directed by those whom it seeks to benefit.
All beneficiaries, particularly women and the less privileged must be involved
in cooperative management and decision making
Technological innovation and the constant search for better ways to achieve
our objectives is the best way to retain our leading position in a dynamic
market
While our methods change to reflect changing conditions, our purpose and
values must remain constant.

CONSTITUTION

The National Dairy Development Board has been constituted as a body
corporate and declared an institution of national importance by an Act of
India's Parliament.
The National Dairy Development Board -- initially registered as a society
under the Societies Act 1860 -- was merged with the erstwhile Indian Dairy
Corporation, a company formed and registered under the Companies Act


1956, by an Act of India's Parliament - the NDDB Act 1987 (37 of 1987),
with effect from October 12, 1987. The new body corporate was declared an
institution of national importance by the Act.
The general superintendence, direction, control and management of NDDB's
affairs and business vests with the Board of Directors

PERSPECTIVE 2010 PLAN

The Perspective 2010 plan of the Dairy Board maps the future of dairying in
India, setting realistic goals for Strengthening Cooperative Business,
Production Enhancement, Assuring Quality, and creating a Information and
Development Research. The plan was realized with the successful completion
of the Operation Flood Programme and has been developed by the State Milk
Marketing Federations and the Milk Producers' Cooperative Unions in
consultations with the Dairy Board. The Perspective 2010 goals and strategies
to meet them have been drawn by its actual implementers - Federation and
Unions and supported by NDDB.

DAIRY COOPERATIVES

Dairy Cooperatives account for the major share of processed liquid milk
marketed in the country. Milk is processed and marketed by 170 Milk
Producers' Cooperative Unions, which federate into 15 State Cooperative Milk
Marketing Federations.


The Dairy Board's programmes and activities seek to strengthen the
functioning of Dairy Cooperatives, as producer-owned and controlled
organizations. NDDB supports the development of dairy cooperatives by
providing them financial assistance and technical expertise, ensuring a better
future for India's farmers.
Over the years, brands created by cooperatives have become synonymous with
quality 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 OFFICE
National Dairy Development Board
P.B. No. 40
Anand - 388 001
Gujarat
INDIA
Telephone:
91-2692-260148/260149/260159/260160
Fax:
91-2692-260159/260165


ABOUT

K.M.F

KARNATAKA MILK CO-OPERATIVE UNITS & UNIONS


ABOUT KMF

Karnataka Cooperative Milk Producers' Federation Limited (KMF) is
the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is
the third largest dairy co-operative amongst the dairy cooperatives in the
country. In South India it stands first in terms of procurement as well as
sales. One of the core functions of the Federation is marketing of Milk and
Milk Products. The Brand ' ' is the household name for Pure and
Fresh milk and milk products.


KMF has 13 Milk Unions throughout the State, which procure milk from
Primary Dairy Cooperative Societies (DCS) and distribute milk to the
consumers in various Towns/Cities/Rural markets in Karnataka.

The first ever World Bank funded Dairy Development Program in the country
started in Karnataka with the organization of Village Level Dairy Co-
operatives in 1974. The AMUL pattern of dairy co-operatives started
functioning in Karnataka from 1974-75 with the financial assistance from
World Bank, Operation Flood II & III. The dairy co-operatives were
established under the ANAND pattern in a three tier structure with the Village
Level Dairy Co-operatives forming the base level, the District Level Milk
Unions at the middle level to take care of the procurement, processing and
marketing 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 Milk
and Milk products is the responsibility of KMF. Marketing Milk in the
respective jurisdiction is organized by the respective Milk Unions. The
Federation monitors Surplus/deficit of liquid milk among the member Milk
Unions. 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 sold
under a common brand name NANDINI.


THE 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 1500.00

World Bank Study – Observations

The World Bank, in its study on the effect of Co-operative dairying in
Karnataka, 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.


K.M.F PERSPECTIVE PLAN 2010

After the closure of OF-III project. Government of Karnataka and NDDB
signed an MOU during February 2000, for further strengthening the Dairy
Development Activities in Karnataka with an outlay of Rs.250 Crores.
Consequent to the announcement of new lending terms and conditions by
NDDB through an evolution of an action plan - Perspective 2010 to enable
the dairy cooperatives to face the challenges of the increased demand for
milk and milk products by focusing efforts in the four major thrust areas of
Strengthening the Cooperatives. Enhancing Productivity, Managing Quality
and building a National Information Network, plans are under
implementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and
Gulbarga that were having accumulated losses were included for
rehabilitation programme under the Centrally Sponsored Scheme
"Assistance to Cooperatives" which is also under implementation.

FUTURE VISION

To consolidate the gains of Dairying achieved in the state of Karnataka and
with a view of to efficiently chill, process and market ever developing and
increasing milk procurement with an utmost emphasis on the Quality and in
the process conserve the socio-economic interests of rural milk producers, the
Govt. of Karnataka through KMF has proposed to undertake several projects
with financial and technical support of NDDB for which an MOU was signed
between Govt. of Karnataka and NDDB on 10th Nov. 2004.

UNITS OF KMF


KMF 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 OF

UNITS NO
Dairies 17
Liquid nitrogen silos 6
Product plant 3
Training center 3
Sperm station 1
Cattle feed plant 4
Pouch film plant 1


MILK - ESSENTIAL FOR NOURISHMENT

Milk is nature's ideal food for infants and growing children in our country,
except in rare cases of lactose intolerance. The important place milk
occupies in our diet has been recognized since Vedic times, and all
modern research has only supported and reinforced this view. In fact,
milk is now considered not only desirable but essential from the time the
child is born. The baby is recommended to be breast-fed until it is
weaned and thereafter given cow/buffalo/goat/sheep or similar
domesticated mammal's milk till he or she reaches 12 years of age.

WHAT IS MILK :


Milk may be defined as the whole, fresh, clean, lacteal secretion obtained
by the complete milking of one or more healthy milch animals, excluding
that obtained within 15 days before or 5 days after calving or such
periods as may be necessary to render the milk practically colostrums-
free and containing the minimum prescribed percentages of milk fat and
milk-solids-not-fat. In India,the term 'milk', when unqualified, refers to
cow or buffalo milk, or a combination of the two.

CHEMICAL COMPOSITION OF MILK (%) :
Sl.No. Species Water Fat Protein Lactose Ash
1 Cow 86.6 4.6 3.4 4.9 0.7
2 Buffaloe 84.2 6.6 3.9 5.2 0.8


K.M.F PRODUCTS


PRODUCTS

TONED MILK

Karnataka's 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


HOMOGENISED 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 packs

GOOD LIFE MILK


Cow's 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

Cow's 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

Cow's pure milk, homogenized, Skimmed. UHT
processed milk bacteria free in a tamper proof tetra-fino


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


Buffalo's 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. It's 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


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. It's 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.


PEDA
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.


BUTTER
Rich, smooth and delicious. Nandini Butter is made out of fresh pasturised cream.
Rich taste, smooth texture and the rich purity of cow's 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


ICE 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. It's 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


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 functions

CHEESE

Delicious Cheese, processed with utmost care to ensure the
smooth and rich taste of pure cheese. It's 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.


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.


NANDINI 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


from therapeutic in nature has very high shelf-life and can be kept
for 15 days in refrigerator without curds becoming sour.

NANDINI SET CURD is competitively priced at Rs.7 per 200gm cup
and at Rs.13 per 400gm cup.

Shelf life : 15 days in refrigerator without curds becoming
sour.


ORGANIZATION OVERVIEW
Of
DHARWAD MILK UNION

DHARWAD MILK UNION

Dharwad Milk Union (DMU) came into existence on 3-3-1986

DMU was established under co-operative act on 3-3-1986 at Dharwad
and Gadag, Haveri, Uttar Canara, Dharwad comes under its operation.

ESTABLISHMENT:


The Dharwad Milk Union is Co-operative society among the 13
establishments, under KMF. The Dharwad Milk Union (DMU) is one
of the most modern plants in the country. It is located in the spacious 25
acres of land, located in Lakamanahalli Industrial Aria, adjacent to the
National Highway-4. it is patterned the AMUL Milk Union Dairy,
Anand, Gujarat.

History :

A group of experienced officers, appointed by the Karnataka
Milk Federation surveyed the whole of Dharwad districts (includes two
newly formed districts Gadag and Haveri) and Uttara Karnataka.
Further they found out there as a need for a milk dairy. They traveled
the surrounding villages, educated the villages about milk and milk
products and the benefits they would get from the milk dairy.

Seeing the overwhelming response and untapped resources and the
huge market the Federation decided to setup the Milk Union in 1984,
known as DHARWAD DISTRICT CO-OPERATIVE MILK

PRODUCERS 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 was
controlled by KMF, came under Dharwad Milk Union.


DMU was a Rs.7 crore project of which Government has Rs.2 crore of
share capital and authorized capital of DMU is Rs.5 crore.

DMU formed 551 milk producer’s cooperative societies in Dharwad,
Gadag, Haveri and Uttar Kannada districts.

The production capacity of DMU is 2 lakh liters per day and also has
the capacity to produce 12 tones of milk powder, 10 tones of butter, 6
tones of ghee per day.

DMU is collecting 70 thousand liters of milk per day from its societies
and sells 60 thousand liters of milk per day and the remaining milk is
used 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 manpower

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 products.
• To make ‘Nandini’ as a part of life.


• 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 through
carriers, trucks etc. The quality and 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 it is to be brought down to 4 C
to 5 C. So that it may check the growth of bacteria. To ensure this milk
is passed through a chilling chamber where the milk is chilled. Its
temperature is bought down and then the milk is stored in a tank called
as “ Ram Milk Tank “.

From this tank the milk is pumped to a pasteurizing cell where the
milk is heated up to 72 C and 15 seconds, so that all the bacteria and
micro-organisms may be killed and then the milk is simultaneously
cooled to 4 C to 5 C and is stored in a “ Pasteurized Milk Tank “.

From here the milk is separated according to the requirement of
production of different types of milk and the remaining milk is used for
manufacturing milk products.

Departments of DMU :

1. Purchasing

2. Quality Control

3. Production


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)


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 societies
at village level. Later milk is collected in the chilling centre. Milk collected
from the milk centre, is first tested. There is milk –testing equipments for this
purpose. Then a survey on availability of transportation facilities and
productive capacity of villages are conducted. If the marketable surplus is
more than 150 liters pre day, a society is formed. Further 10 promoters are
selected from the village and are given the responsibilities of collecting the


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 Manager
Clerks
Assistant manager Helpers
Extension officer Assistant manager
Clerks


PRODUCTION AND PROCESS DEPARTMENT

The main objective of this department is to follow up production
schedule as per plan and to maintain close and co-ordinate relationship with
other department and ensures to upgrade the technical efficiency of
production. Milk, as it is highly perishable product has to processed
immediately to avoid spoilage milk respect to its flavor, texture and taste


Production department is well equipped and has various types of highly
sophisticated machines imported from Sweden and Denmark. Once the milk is
received from p & I department, it is first weighed with the help of weighing
bowl. Later, it is poured in dump tank. Sample testing is made through
lactometer reading and other tests. The fat and SNF content of each sample of
milk is accessed the cow and buffalo’s milk are separately received and sent to
the production section separately through two different stainless steel pipes.

Later, the raw milk is passed through plate chiller of variable capacity
where it is cooled up to 4-5 degrees Celsius. This cooled raw material is
further stored in a silo of 30,000 liters capacity.

PURPOSE OF CHILING

This is done to avoid the growth of micro organisms, which are
responsible for spoilage of milk and bitter taste. The milk, which is stored in
silos, is pumped through pipeline to the balance tank, which helps to maintain
the steady speed flow of milk in the pasteurization machine. In, DMU, there
are 2 milk pasteurization machine and 1 Cream pasteurization machine.


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

DCS

Fresh liquid milk

Sample testing


Chilling

Fat and SNF

Storing

Pasteurization
Homogenization

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.


CURDS:

Raw milk is heated to 90 and allowed to cool to 30. Later culture is
added to it and packed; 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 section where it is churned. Here butter fat and butter milk are
separated . The vacuum pump removes excess of moisture and butter comes
out of continuous butter making machine (capacity-1500kgs/hour).Butter is
pakd in 100, 200and 500gms and also in 10, 25 gms, these are stored in deep
freezer room with temperature -22 and if the order of salt butter they mix salt
water 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 and is brought Ghee Boiler. Here it is heated to 116-117 degree Celsius
for 15 minutes so that the residue is allowed to settle down and Ghee is passed
setting 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:


If there is excess of milk, then, paneer is made. The milk is heated to 90 for
15 to 20 minutes. Glacial acetic acid is added to milk, and then milk is strained
through fine muslin cloth. The solid portion is retained and put in water and
then it is put in chilled water and left over night. Later it is packed and stored
in cold storage.

MILK POWDER:

When there is excess of milk. Milk powder is made the capacity of the
powder plant is 12tons. There are two sections-Evaporator and spray driver
through which milk is converted to Milk powder. In Evaporator, milk is boiled
for 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 pedha
section. About 80 liters (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. Later it cooled and it is shaped in small
balls and packed.

The milk produced here is differentiated by the content of FAT and
SNF


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 STAFF
MANAGER

ASSISTANT
MANAGER

ASSISTANT ASSISTANT
TECHNICAL
SENIOR (ACCOUNTS) (STORES)
OFFICER
SUPERVISOR CLERK TYPIST


JUNIOR
SUPERVISOR

DAIRY DAIRY DAIRY
OPERATORS 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


;

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 MANAGER

QUALITY QUALITY
ASSISTANT ASSISTANT
OFFICER OFFICER
(CHEMICALS) (BACTERIOLOGY)


QUALTIY
ANALYST

LAB QUALTIY
ASSISTANT ASSISTANT

MARKETING DEPARTMENT

The Marketing Department has following structure:

MANAGER

DEPUTY MANAGER DEPUTY MANAGER
(ACCOUNTS/AUDIT) (SALES/PRODUCTION)

ASSINTANT MANAGER ASSISTANT MANAGER
(TECH.OFFIER)

SUPERVISOR SUPERVISOR
(FGS/STORES)
MARKET ASSISTANT MARKET ASSISTANT


Further the Marketing Department has two sub-department

 STORES
 FINISHED GOODS STORE
STORES DEPARTEMENT:

The Stores Department in DMU follows the Cordex System (Coded
Control 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 inventories
are of different kind ranging from mechanical, spares, packing items to animal
drugs, stationary and veterinary drugs. There are at least 4000 different
inventories.

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


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 MANAGER

MARKETING ACCOUNT
ASSISTANT ASSISTANT
DAIRY WORKERS
DAIRY OPERATOR


FINANCE DEPARTMENT

This Department is responsible for keeping all the inward and
outward flow of money of union. It prepares budget every year and financial
rules for receipts all payments are framed. 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
OFFICERS

ASSISTANT 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


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 MANGER

ASSISTANT MANAGER
(BOARD) ASSISTANT MANGER
(PERSONNEL0

ADMINISTRATION
SUPERINTENDENT
ADMINISTRATIONSSU
PERINTENDENT
ADMINISTRATION
TIME KEEPER
ASSISTANT CANTEEN SECURITY
DEPARTMENT


The Administration Department also handles Canteen, Security and
Time Keeping Machine.

CANTEEN

There 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 KEEPER

This department records the working hours of the employees. Time machine shows
the entry time and exit time of each employee. The workers divided into different
shifts 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 time
machine and before living the premise he has to do the same. Based on this
attendance, 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 been
guarded by the security personnel. The security people work in three shifts. All the
vehicles are checked before entering the premise. The department is also maintains
separate registers like store-in register, attendance register etc.


PRODUCT PROFILE OF K.M.F – DHARWAD

K.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


COMPETITOR PROFILE


Competitor profile

Major competitor in Karnataka for K.M.F

HATSUN (Arokya)

Welcome to the Hatsun world, India’s largest private dairy. From a modest
ice cream manufacturer to one of the leading names in India’s dairy sector in
just a span of three decades,

The company was in-corporated on 4th march 1986 under the name and style
of hatsun foods private ltd. The name of the company was changed hatsun
milk foods private ltd and subsequently converted in to a public ltd company
in the year 1995. the present name of the company was adopted in the year
1998 .

The company was found and promoted by Mr. R.G Chandramogan and his
associates.R.G Chandramogan
Initially started ice cream business in early in 1970 and later in the year 1986
formed 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 share of 60%&35%for its icecreams in tamilnadu & south India
respectively .the market share for its milk & milk based product is 45% in the
entire south India the co plant are situated in red hills (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 all over the world .the co was proved to introduced 100%
pathogenic bacteria removed milk, the first of its kind in India bacteria
removed milk is produced by bacteria clarification process using german
technology which physically removes 100% pathogenic bacteria from milk
this technology 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 has captured the heart of millions of icecream lovers. With over 70
delightful varieties it is the No.1 selling ice cream in south india . Arun ice
creams is manufacture at the most modern plant its kind in Chennai. From the
ingredients, to the packing and the distribution stringent quality control is
maintained at every stage which has made Arun ice creams the first ice cream
brand in India to win the 9001 certification for quality and world class
manufacturing facilities. Arun ice cream reaches the customer through the
largest network of a exclusive parlours in India.

Sales

The combined sales of arokya and komatha is 7,5000 liters a day. And hastsun
is fast nearing its objective 1 million liters a day.

Hastun quest for quality starts at procurement, two times a day, 365 days of
the year at over a thousands collection centers, from more than a hundred
thousand farmers hastsun sources its milk with on ever watchful eye, always
keen on quality. Its an enthusiastic and busting activity when milk its takes
first step in its journey to the consumers homes.


Products

 AROKYA
 KOMATH
 SANTHOSH
 ARUN (Ice cream)

OTHER COMPETITORS

 SPURTHI
 BHARTHI
 NOVA
 SRI KRISHNA


SWOT ANALYSIS


SWOT ANALYSIS

STRENGTH

 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.


Project
Overview


INTRODUCTION OF PROJECT
Introduction
This project is carried out in, Karnataka co-operative Milk Federation
Hubli. They work for the purpose of giving a quality and fresh milk for
customer 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 distribution
channel about K.M.F Dharwad Milk and other products.

The area of study is limited to

 Hubli
 Dharwad

The study has been doe to ensure that this would help and organization to
increase their sales 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”

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.


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 questions

Data collection Instrument
In this project personnel interview and questionnaire was adapted for
collecting the data.

1. Primary data
2. Secondary data.

Primary data is collected through survey method i.e. by preparing
questionnaire and interviewing persons directly and by interacting with the
marketing manager, dealers, agents and other staff members who all are
involved in distribution network.

Secondary data, which is secondary in nature i.e. already, collected
information. This secondary data is collected through-

• Company broachers

• Books

• Magazines

• News papers

• Internet


Analysis and interpretation

From the required data collected from the dealers and agents by way of
questionnaires and personal interview, on the basis of collected data can be
analyzed and based on this analysis, conclusion and recommendations was
formulated.

Research Approach: Survey Method

Sampling Process: The process of drawing a sample from a large number of
Agents and dealers is called sampling

The sampling process is broadly divided into three categories, they are

4. Sampling unit
5. Sampling size
6. Sampling technique

Sampling Unit: Sampling unit for study is conducted on distribution
effectiveness on Nandini Milk and other products for agents and dealers from
the various part of the Hubli And Dharwad.

Sampling size: The sampling size consist the 100 agents, dealers for K.M.F
products in various parts of Hubli and Dharwad.

Sampling technique: convenience and Non Probability judgment techniques.


Distribution

'Distribution' is one of the four aspects of marketing. A distribution
business is the middleman between the manufacturer and retailer or (usually)in
commercial or industrial the business customer. After a product is
manufactured by a supplier/factory, it is typically stored in a distribution
company's warehouse. The product is then sold to retailers or customers. The
other three parts of the marketing mix are product management, pricing, and
promotion. Traditionally, distribution has been seen as dealing with logistics.

The Distribution Channel

Frequently there may be a chain of intermediaries; each passing the product
down the chain to the next organization, before it finally reaches the consumer
or end-user. This process is known as the 'distribution chain' or, rather more
exotically, as the 'channel'. Each of the elements in these chains will have their
own specific needs; which the producer must take into account, along with
those of the all-important end-user.

Channels
A 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 Marketing

This relatively recent development integrates the channel with the original
supplier - 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 retail
outlets, this being 'forward' integration. It is perhaps more likely that a retailer
will own its own suppliers, this being 'backward' integration. (For example,
MFI, the furniture retailer, owns Hygena which makes its kitchen and
bedroom units.) The integration can also be by franchise (such as that offered
by McDonald's 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 the distribution chain uses its position to co-ordinate
the other members' activities. This has traditionally been the form led by
manufacturers.
The intention of vertical marketing is to give all those involved (and
particularly the supplier at one end, and the retailer at the other) 'control' over
the distribution chain. This removes one set of variables from the marketing
equations.
Other research indicates that vertical integration is a strategy which is best
pursued at the mature stage of the market (or product). At earlier stages it can
actually reduce profits. It is arguable that it also diverts attention from the real
business of the organization. Suppliers rarely excel in retail operations and, in
theory, retailers should focus on their sales outlets rather than on
manufacturing facilities ( Marks & Spencer, very deliberately provides
considerable amounts of technical assistance to its suppliers, but does not own
them).


Horizontal Marketing

A 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 is beyond the capacity of each individual organization
alone. In general, this is less likely to revolve around marketing synergy.

Retailers

Like for wholesalers, it may be that you only use retailers if you
manufacture your own products: again, evidencing the larger smaller
business. Retailers can promote your product by making consumers
aware of its availability and by passing on technical information that
could encourage the sale.

Because there are thousands of retailers located all around the
country, they are an excellent intermediary for distributing your product
to a wide geographical range of consumers.

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 to retailers, the added expense of
transportation is the only issue.

Small businesses account for a high proportion of retailers and so they
can often find themselves at the end or in the middle of a distribution
channel, where their own channel of selling to a consumer would be
direct.


Using Multiple Channels of Distribution

When analyzing which distribution channel is best for your business,
you should not restrict yourself to one channel, but instead adopt a
number of channels that are suitable for selling your product/service
efficiently and effectively (if necessary).

For example, a business may use a retailer to sell their product and at
the same time, use direct mail and telemarketing to further encourage
sales: there are a number of feasible combinations.

Choosing the Right Distribution Channel

There are several factors affecting how you may decide on the most
appropriate distribution channel(s). A few of these are highlighted
below:

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


Product/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 bulk

The Consumer

• How convenient is it for them to purchase your product or
service

• Who is your target audience


Telemarketing

Selling your product/service through telemarketing is becoming
increasingly popular. Similar to 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 may
also be required creating the need for more staff. Alternatively, a
professional service can be consulted to carry out the task: with an
increased cost and/or commission.

Agents/Brokers

An agent or broker will help sell your product/service, but will not take
ownership of what they are selling at any time. They usually work on
commission taking a percentage of the total sales made by
themselves. 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 your
business premises and 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 own the holidays or credit the full amount of the
sale to their business. Instead, they act as a link between the holiday
resort and the consumer, taking a commission on the sales.


Wholesalers

It may be that you only sell to a wholesaler if you manufacture your
own products: possibly evidencing a larger small business. If this is the
case, a wholesaler can be used to distribute your products reaching a
potentially large number of consumers. The main function of a
wholesaler is to provide a link between the producer (you) and the
retailer. The advantage of selling to a wholesaler is that they often buy
in bulk, splitting the purchase into smaller manageable 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 common route out of the three.
Alternatively, your products will be sold on by the wholesaler to
retailers.

The other advantages of selling to a wholesaler are that they may have
strong links with quality retailers: research will help discover this fact. In
addition, because they buy in bulk, it reduces 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 own network of transport delivering goods directly to
retailers, which would normally be your responsibility.

The disadvantage of using a wholesaler to distribute your products is
that they cannot market your products extensively. Further, because
they buy in bulk, it is often you will sell at a price much lower than the
final retail price. Therefore, the wholesaler will take some of the profit
because they will sell on your products in smaller quantities at a higher
price.


Analysis
And
Interpretation


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
Milk

Interpretation
 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?


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 time

Interpretation
 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


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%


90%
79%
80%
70%
60%
50%
Series1
40%
30%
20% 12%
10% 6%
3%
0%
Cash discount Gifts Schems Other specify

Interpretation
 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%


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%


70% 69%

60%

50%

40%

31% Series1
30%

20%

10%

0%
Yes No

Interpretation
 In the above chart the sales man approach is 69% it is cleared that they
are satisfied with the delivery person. But in the above chart 31%
agents are not satisfied with that person it will effect on sales so
improve of the vehicle transporter behavior

7.What are the problems you are facing?

S.No Problems facing No of Percentage
by agents respondent
1 Delivery time 20 20%
2 Exchange of 68 68%
damaged milk
3 Approach of sales 10 10%
man
4 Other 22 22%
Total 100 100%


80%
68%
70%
60%
50%
40% Series1
30% 22%
20%
20%
10%
10%
0%
Delivery time Exchange of Approach of Other
damaged sales man
milk

Interpretation
 The agents are facing more problem in the exchange of damaged milks
so improve in the packaging and also delivery time and approach of
sales man. Other problems like more time for cash payment.

8.Whether there is any delay in supplying product

S.No Delay in supply No of Percentage
respondent
1 Yes 46 46%
2 No 54 54%
Total 100 100%


46%
Yes
No
54%

Interpretation
 In the above chart 54% of the agents says no delay in supply of milk.
But the 46% of the agents says there is a delay, which are last point of
supply and some vehicle contractors are not going on times. After
loading the vehicle some are going to homes and some are taking rest
in out side any hotels concentrate this contractors regularly.

9.When do you sell more milk?

S.No Seasons No of Percentage
respondent
1 Festival season 60 60%
2 Occasions 9 9%
3 Marriage season 24 24%
4 When discount are 7 7%
offered
Total 100 100%

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