11jjcma100 1

KARNATAKA MILK UNION DHARWAD
EXECUTIVE SUMMARY The project based on In-plant Training. As a part of course requirements the student of Master of Business Administration has to take up a project for a month and it involves study of various departments in an organization. Hence I undertook In plant training in Dharwad Milk Union Ltd, Dharwad .The study applicable to Dharwad Milk Union Ltd, Dharwad. And it comprises of companies industry profile, company profile, the product profile, competitor department information in brief and frame work with special reference to organization study of Dharwad Milk Union Ltd, The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development.
It was my privilege to carry out my in plant training in DHARWAD Milk Union Ltd. Dharwad, it is engaged in manufacturing of sponge Iron.It assure quality product to its customer by continuous checks and monitoring quality process by various inspection methods. this is reason why Dharwad Milk Union Ltd, Dharwad is continuously making process and increasing its profit every year.
To impart training, institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centers have been set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good quality of fodder and seed production farm at Shahpur has been set-up. The federation giving details of the latest technology in dairy industry etc is published KsheerSagar magazine monthly. One of the core functions is procurement of milk, processing it and marketing milk and milk products. Dharwad Milk Union markets its products under the brand name Nandini.
Kristu jayanti college
Page 1

1.INDUSTRY PROFILE 1.1 INTRODUCTION DAIRY INDUSTRY IN INDIA
Dairy enterprise is an important occupation of farmer. In India nearly 70% of the people depend on agriculture. It is the backbone of India. Dairy is linked with agriculture industry to a large extent. Animal husbandry in India is an essential part of agriculture. It is mainly a rural occupation closely associated with agriculture.
Page 2

1.1.1 DEVELOPMENT OF DAIRY INDUSTRY IN INDIA During the Pre-independence year there was no serious stress given to dairy industry. In 1886 the Department of Defense of the British Government established the dairy farms for the supply of milk to the British troops in Allahabad. Later, in 1920 serious steps were taken by Mr. William Smith, an expert in dairy forming to improve the milk production There was discrimination done to the Indians hence this led to the rise of the first milk union in India. In Lucknow in 1937 called the Lucknow milk producers Co-operative union Ltd. In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the economic stability of villagers. When the farmer Prime Minister LalBahaddurShastri visited the functioning as it was rendering a social service to the society, which helped the villagers to come in the national economic stream. The dairy and Animal Husbandry received serious attention after the independence. There were 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 1970 he decided to Bring a White Revolution throughout the country, Initially 10 states were selected were for this purpose excluding Karnataka. In Karnataka in 1974 an integrated project was launched to restructure and reorganize the dairy industry on Co-operative principle of AMUL and to lay foundation for new direction in dairy industry. 2. INDIAN DAIRY INDUSTRY PROFILE India's high-value, high-volume market for traditional dairy products and delicacies is all set to boom further under the technology of mass production. This market is the largest in value after liquid milk and is estimated at US $45 billion in India. More and more dairy plants in the public, cooperative and private sectors in India are going in for the manufacture of traditional milk products. This trend will undoubtedly give a further stimulus to the milk consumption in the country and ensure a better price to primary milk producers. Simultaneously, it will also help to productively utilize India's growing milk surplus. Kristu jayanti college Page 3

Milk production in India increased from 17 million tons in 1950-51 to 89.6 million tons in 2007-08. India has rapidly positioned itself as the world's largest producer of milk. Producing milk in rural areas through smallholder producer cooperatives and moving industrially-processed milk from these smallholder sources to urban demand centers became the cornerstone of government dairy development policy. This policy initiative gave a boost to dairy development and initiated the process of establishing the much-needed linkages between rural producers and urban consumers. The performance of the Indian dairy sector during the past three decades has been truly impressive. Milk production grew at an average annual rate of 4.6 percent during the 1970s, 5.7 percent during the 1980s, and 4.2 percent during the 1990s. Despite its being the largest milk producer in the world, India's per capita availability of milk is one of the lowest in the world, although it is high by developing country standards. The per capital availability of milk expanded substantially during the 1980s and 1990s and reached about 226 grams per day in 2003-04 the per capita consumption of milk and milk products in India is among the highest in Asia, but it is still growing. It is still below the world average of 285 grams per day, and also the minimum nutritional requirement of 280 grams per day as recommended by the Indian Council of Medical Research (ICMR). Several factors have contributed to increased milk production. First, milk and dairy products have cultural significance in the Indian diet. A large portion of the population is lactovegetarian, so milk and dairy products are an important source of protein in the diet. The demand for milk and dairy products is income-responsive, and growth in per capita income is expected to increase demand for milk and milk products. Despite the fact that dairy production in India is widespread throughout the country and overwhelmingly carried out by small-scale producers, there are still large interregional and interstate variations in milk production. Roughly two-thirds of national milk production comes from the states of Uttar Pradesh, Punjab, Rajasthan, Madhya Pradesh, Maharashtra, Gujarat, Andhra Pradesh, and Haryana. However, there have been some shifts in milk production shares of different states. In 2001-02, Uttar Pradesh was the largest milk producer in the country, with about 16.5 million tons of milk, followed by Punjab (8.4 million tons), Rajasthan (6.3 million Kristu jayanti college Page 4

tons), Madhya Pradesh (6.1 million tons), Maharashtra (6 million tons), and Gujarat (5.6 million tons). The eastern region is lagging behind in terms of dairy development, and imports milk from surplus areas in the West and North. 2:1.2 INDIAN DAIRY INDUSTRY A PROFILE The annual milk production is presently 92 million tones, contributing around Rs. 1000 billions to the GDP. Provides assured and remunerative employment round-the-year to 60 million families. The dairy animals make a substantial contribution to household food security by providing income, quality food, energy, fertilizer and assets in over majority of the rural households in India. The Animal Husbandry is the single largest contributor under the agriculture sector which provides a remunerative employment round the year at a very small investment. The dairy animals make a substantial contribution to household food security by providing income, quality food, energy, fertilizer and assets in over majority of the rural households in India. These livestock keepers are constrained by poor animal health and veterinary services, lack of feed and fodder, water, milk handling, chilling, etc. Besides, there has been lack of infrastructure facilities such as good roads and access to markets, etc. The livestock keepers also lack access to advanced technologies as well as proper institutional support system. The result is that both the production and productivity remain well below its potentials. Thus the losses and wastages continue to remain high. Adapted breeds and local feed resources although available, but need proven technology supports in its preservation and processing. Such support would substantially improve production and productivity, which would result in higher income for the livestock keepers. One of the problems faced by India is unemployment, despite the rapid growth rate. The problem is more acute in rural educated and marginally educated youths, who have no alternative but to migrate to urban areas. Due to automation in various core sectors, the employment Kristu jayanti college Page 5

opportunities have dwindled considerably whereas the service sector has its own limitations, especially the high investment cost per job created. In this context, the dairy industry offers a plausible opportunity of creation of self-employment with minimum investment. There is a scope for doubling the present milk production, which can be achieved with marginal investment, such a step would not only enhance milk production and productivity, but also would create millions of additional jobs. Dairying is, in fact, a supplementary activity of the marginal farmers and the landless laborers. It is therefore suggested that dairy and such other animal farming be included within the legal framework of agriculture and agriculture products. This would enable the marginal farmers and the landless agriculture laborers to benefit from the various government incentives. Milk is no more a luxury, but essential nutritional requirements of human being. The children largely depend on milk for nutrition. Higher milk production therefore will also increase the health status of the farmers and people at large. Due to several inherent reasons, the cost of milk production is high. One of the important reasons is low animal productivity. Because of high cost, the milk and milk products are not affordable to poor strata of the society. Milk is a perishable commodity. Hence, its conversion to products, such as, milk powder, butter and cheese, etc. is necessary. Considering these factors, it is reasonable that at par with agriculture produce, the milk products be also exempted from any excise duty, sales tax and such other taxes. This gesture of the government would go a long way in accelerating the growth of the Indian dairy industry from present annual rate of around 4.5 % to more than 9%. The conversion of excess milk to milk-products is a necessity. The basic principle here is evaporation of water which changes its physical form only, whereas there is no change whatsoever in its chemical composition. One of the reasons of higher cost of milk and milk products is the cost of packaging. To safeguard the quality and safety for human consumption, packaging of milk and milk product is necessary. The milk product manufacturing therefore should be construed as processing milk for preservation and it should be exempted from all the taxes and duties like excise, central sales tax and octroi etc. To enhance milk production during Kristu jayanti college Page 6

the next five years as well as to address the issues referred in the foregoing sentences, there is an imperative need of policy support from the government on the following core areas: Clean and quality milk production, processing and packaging Boost the exports of milk and milk products Enhance milk production and mulch animal productivity 2:1.3 Indian Dairy: The organized sector is expanding rapidly. Indias modern dairy sector has expanded rapidly. From an insignificant 200,000 liters per day (lpd) of milk being processed in 1951, the organized sector is presently handling some 20 million lpd in over 400 dairy plants. Already, one of the worlds largest liquid milk plants is located in Delhi and handling over 800,000 liters of milk per day (Mother Dairy, Delhi). India's first automated dairy Mother Dairy has been established at Gandhi agar near Ahmadabad, Gujarat, in Western India and its capacity is capacity is 1 million lpd. It is owned by Indias biggest dairy cooperative group, in Anand, with an annual turnover in excess of Rs 23 billion (US $500 million). Amul-III with its satellite dairies, with total installed capacity of 1.5 million lpd has also been commissioned. India's first vertical dairy (capacity: 400,000 lpd), owned by the Pradeshik Cooperative Dairy Federation (PCDF) has been commissioned at Noida, outside Delhi Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. In India, dairying has been practiced as a rural cottage industry since the remote past. Semicommercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century. The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of Kristu jayanti college Page 7

milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. 2.2DAIRY INDUSTRY PROFILE
Human population: 953 million (70 million dairy farmers) Milk production: 74.3 million tonnes (203.5 million lpd) Average annual growth rate (1995-2000): 5.6% Per capita milk availability: 214 g/day or 78 kg/year Milk animals: 57 million cows; 39 million buffaloes: Milk yield per breed able bovine in-milk: 1,250 kg Cattle feed production (organized sector): 1.5 million tonnes Turnover of veterinary pharmaceuticals: Rs. 550 crores Dairy plants throughput: 20 mlpd
Specific features of dairy in relation to marketing in developing countries The dairy industry in the developing countries has a number of specific features which distinguish it from the other sectors of agriculture and have particular implications for marketing. First, milk consists of over 85% water, and produced daily. Consequently, high costs of transportation are incurred per unit of output marketed. Also, milk being highly perishable, it needs to be used within a short period or processed and transformed into a more stable, longerstorable form. The quality of milk depends on farm management practices, and milk is potentially subject to adulteration, so strict and comprehensive quality regulations may be necessary when marketing involves more than direct delivery by producers to consumers. Second, the vast majority of the dairy farmers are small-scale producers, who produce milk as a source of regular cash income. Dairy production is a labor-intensive enterprise, and dairy marketing activities often provide substantial employment. However, because of asset Kristu jayanti college Page 8

fixity (high percentage of fixed costs), dairy enterprises often respond to market changes and incentives in a limited and gradual way. Third, milk can be used to make a wide range of high quality palatable and nutritious products, which often imply substantial value added over the cost of the raw material. When production and consumption points are far apart and demand increase rapidly, processing of dairy products becomes very important. Fourth, as a consequence of the above features of milk and the market vulnerability of its producers, cooperatives may assume a strong position in milk processing. A survey by the International Dairy Federation in 1984 revealed that in 21 developed countries together accounting for 55% of the world's milk supply, producer cooperatives marketed 86% of total sales of milk from farm to the first handler. In some of these countries, cooperatives also handled 80-90% of the total processing activity. It may be noted that the history of development of dairy cooperatives in these countries are not always similar. However, in most developing countries, dairy producer cooperatives and cooperative processing are either non-existent or very weak. The need for cooperatives in these countries is driven by the need to capture some economies of scale in transportation and processing where numerous small producers are scattered far away from the consumption centers. In many countries, this gap has been filled by establishment of parasitical dairy enterprises for collection and processing of milk to promote domestic dairy. In most cases, these enterprises ended up processing subsidized imported dairy products, neglecting the rural dairy sector. The monopolistic character of these enterprises often led to inefficiency thus they failed to serve the interests of domestic producers and consumers. Weaknesses in physical and marketing links between rural producers and urban processors and consumers are among the major constraints to dairy development in the developing countries. It is important to be aware of and understand how such constraints can be addressed in order to devise mechanisms that can transfer growing urban demand into increased Kristu jayanti college Page 9

livestock production. Inadequate infrastructure and inefficient marketing may lead to increased transactions costs and/or market failure. By better understanding these costs and identifying the ways of reducing their impact, policy prescriptions can be made to promote economic development by fostering production and trade. 2.3 NATIONAL DARIY DEVELOPMENT BOARD: History:
The NDDB was founded to replace exploitation with empowerment, tradition with Modernity, Stagnation with growth, transforming dairy into and instrument for the development of Indians rural people. The NDDB was established in 1965; the board is registered under the Societies Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of India the late LalBahaddurShastri to extend the success of the Kaira Co-operative Milk producers union (AMUL) TO OTHER PARTS OF India. DrVergeseKurien was the founder chairman. The success combined the wisdom & energy of farmers with professional management to successful capture liquid milk and milk product markets while supporting farmers investment with inputs and services. In 1969, when the Government of India approved the Operation Flood programme and its financing through the monetization of World Food Programme-gifted commodities, it was found that the statutes under which NDDB was registered did not provide for handling of government funds. Therefore, in 1970 the government established a public-sector company, the Indian Dairy Corporation. The IDC was given responsibility for receiving the projects donated commodities; testing their quality; their storage and transfer to user dairies and receiving the dairy payments. Thus it served as finance-cum-promotion entity while the entire Operation Flood technical support was provided by NDDB. To avoid any duplication in their activities or overlap of functions, the IDC and NDDB were eventually merged into a newly constituted NDDB by an Act of Parliament passed in October 1987.
Page 10

2.3.1 The Growth: NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of gross roots milk producers. The mission archived helped to launce Operation Flood, a programmed extending over 26 years and with the help of World Bank Loan India become the worlds largest milk producing country. As per March 2001 Indias 96000 Dairy Co-operative are integrated thorough a three Tier Co-operative structure. The Anand pattern, which is owned by more than 10 million formers, procures an average of 1605 million 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 Indias Dairy programmer by placing dairy development in the hands of milk producers and the professionals they employ to manage their co-operatives. In addition, NDDB also promotes other commodity based co-operative, allied industries and veterinary biologically on an intensive and nationwide basis.
2.3.2 Objectives of NDDB: To sponsor, promote, manage, acquire, construct or control any plant or work, which promote projects of general public utility relation to dairying. To make information available on request to technical services to increase production of Milk. To prepare initial feasibility studies of dairying and other dairy related projects and undertake subsequent designing planning and start up those projects. To undertake research and development programmed related to production and marketing of milk and milk products. To provide assistance for exchange of information to other international agencies.
Page 11

2.3. 3Services rendered by NDDB:
Planning dairy and rural development projects. Organization of farmer co-operative societies. Setting up of dairy and cattle feed plants. Manpower planning and training. Applied research and development. Implementation of milk production enchantment programmed.2.3.5 Objectives of the study:
The objectives of the study were;
1. To study the overall functioning of the organization with help of organization structure. 2. To know about the milk procurement and processing. 3. To study about the area of operation and channels of distribution system. 4. To study their marketing Plans and sales promotional activit
Page 12

COMPANY PROFILE
A) Dharwad Milk Union Dharwad Milk Union (DMU) came into existence on 3-3-1986.DMU was established under cooperative act on 3-3-1986 at Dharwad and Gadag, Haveri,Uttar Kannada and Dharwad come under its operation.
Establishment:
The Dharwad Milk Union is Co-operative society among the 13establishment, 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 Area, adjacent to the Nation Highway-4.Itis patterned the AMUL Milk Dairy, Anand, Gujarat
History: A group of experienced officers, appointed by the Karnataka Milk Federation surveyed the whole of Dharwad districts (includes two newly formeddistrictGadag and Haveri and Uttar Karnataka. Further they found out there as aneed for a Milk Dairy. They traveled the surrounding villages, educated the villagers about Milk and Milk products and the benefits they would get fromthe MilkDairy. Seeing the overwhelming response and untapped resources and the huge market the Federation decided to setup the Milk Union in 1984, known as the
Page 13
KARNATAKA MILK UNION DHARWAD 3. company profile

Dharwad Co-oprative Milk Producer Union Ltd.Dharwad. (KMF) A co-operative society registered under the co-operative act 1959. Procuring and Marketing of Milk Production and Sale of Milk Products. 2 Lakh liters/Day: Milk Powder 12MT/Day Butter Ghee MILK CILLING CENTER 6MT/Day 6MT/Day
NAME
STATUS
NATURE OF BHSINESS PLANT CAPACITY
Gadag, Haveri, Hirekerur, Naragund, Ron, Sirsi Dharwdad, haveri, Gadag, Uttara Karnataka.
AREA OF OPERATION
PRESENT VALUE OF ACTIVITY
Collection of Milk Sale of Milk Elected Members
120,000 LTD 92,0000 LTD 8 5 3
BOARD OF DIRECTORS Ex-Officer By Government TOTAL EMPLOREES 291
Page 14
LOCATION
Lakamanahalli Industrial Area, Dharwad 25acres
BRAND NAME
NANDINI AND SHUBHAM Milk:
PRODUCTS Homogenized Milk, Standard Milk, Subham Milk Milk Product: Butter. Ghee, Peda, Gurd, Lassi, Paneer, Milk Powder,etc.
CO-OPERATIVE SOCIETIES AT VILLAGE LEVEL
730 Societies Under the DMU
3.1 BOARD OF DIRECTORS
1. Shri B N Arabgond. 2. Dr M N Venkatramu. 3. Shri N S Asuti. 4. Shri G M Morbad. 5. Shri A M Desai. 6. Shri S M Hadagali. 7. Shri R N Davagi. 8. Shri U M Hegade. 9. Shri G GHegade. 10. GovtDept Officers. 11. Govt Nominated. Kristu jayanti college
Chairman Managing Director Director. Director. Director. Director. Director. Director. Director. 5 Members. 3 Members. Page 15

3.2 KARNATAKA MILK FEDERATION (KMF)
The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, further in June 1974; an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. In 1975, the World Bank aided dairy development was initiated. The present Karnataka Milk Federation (KMF) came into existence in 1984-as a result of merging of Karnataka Dairy Development Co-operation, small co-operatives and Karnataka Milk Production 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 28 districts of Karnataka. There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and 2 Product dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed there are 4 cattle feed plants. Kristu jayanti college Page 16

To ensure supply of quality germ plasma Bull breeding farm and frozen semen bank are also available. 3.2.1 Karnataka co-operative Milk Producers Federation Limited (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 are functioning. Three nitrogen plants (2 plants of 25CPM and 1 plant of 5 CPM) are been set-up to supply nitrogen, which is usedfor Refrigeration purpose. Three diagnostic centers have been 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 atShahpur has been set-up. Kristu jayanti college Page 17

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 forrepresenting dairy organizations and also implementing dairy developmentactivities to achieve the following objective
Providing assured and remunerative market for all the milk produced bythe farmer members
Providing hygienic milk to urban consumers.
To build village level institutions in co-operative sector to manage the dairy activities. To ensure provision of milk production inputs, processing facilities and dissemination of know-how. To facilitate rural development by providing opportunities for self-employment at village level, preventing migration to urban areas, etc.
Page 18

THE GROWTH PROCESS: The growth over the years and activities undertaken by KMF is summarized briefly hereunder: Growth of KMF Descriptions Units Nos 1976-1977 2011-2012 416 13006 REGED/11568 Funct
Dairy Co-operatives
Membership
Nos
37000
21.51Lacs Avg.42.85 Peak Proc.46.49(Nov11)LKPD 28.90LLPD / curd:2.74.LKPD / Good life 2.19 LLPD 2958
Milk Procurement
Kgs/day
50000
Milk Sales
Lts/day
95050
Cattle Feed Consumed
Kgs/DCS
220
Dairy Payment to Farmers Rs.Lakhs
0.90
785
Turnover
Rs.Crores
5823.69
Page 19

3.2.2 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. Excellence in quality is to be maintained to lay a solid foundation for wide Spread acceptance of Nandini products. To increase the market share of Nandini.
3.2.3 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.
Page 20

THE DISTRICT CO-OPERATIVE SOCIETY (DCS)
It is a basic organization unit , functioning at the village level, training local people to organize manage the village level institution building and development of local leadership 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 milk procurement. The procurement route is linked to chilling center oradairy. Dharwad Milk Union is one of such Milk Unions. It is the middle tier of the complex co-operative organization network. Unions are formed byfederating the societies in locating geographical area. The milk unions areorganized to make them economically viable and the jurisdiction extends fromone district to 3 Districts. There are 5 Milk Unions whos Jurisdiction covers asingle district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts andOne Unionsterritory extends to 4 District. All Unions own their own Milk Processing Facilities.
Page 21

FUNCTIONS
The Unions help to organize new primary Dairy Co-operative Societies. The Union also help in managing these DCS assisting in accounts ,purchase, process and marketing liquid milk. The union helps in providing all input facilities to DCS and channelized the dairy formers through DCS. The union provides the following facilities.
Providing Balanced Cattle Feed. Providing Animal Heal care Providing Artificial Insemination facility for breed improvement. Providing Training for breeding, feeding management.
The Karnataka Milk Federation consists of:
UNITS Milk Dairies Liquid Nitrogen Silos Product plant Training Center Sperm Station Cattle Feed Plant Pouch Film Plant
NO. 13 17 6 3 3 1 4 1
Page 22

THE PRODUCTS OF KMF:
MILK
Toned Milk, Full Cream Milk, Good Life, Standardized Milk, Flavored Milk, Smart, Slim, Butter Milk, Homogenized Toned Milk Ghee, Badam Powder, Butter, Panner, Curds, Peda, Cheese, Ice Cream, Gulab jamoon mix, Khova, CashewBurfi,
MILK PRODUCT
Source:
DHARWAD MILK UNION
Dharwad District Co-operative Milk Producers' Societies' Union Ltd. 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 Canada and Dharwad come under its operation. Kristu jayanti college Page 23

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 Area; adjacent to the National Highway-4. It is patterned the AMUL Milk Dairy, Gujarat. NATURE AND BUSINESS CARRIED:
The Nature of Dharwad Milk Union is that procuring the Milk from societies. And that milk will be bringing through tankers for various chilling centers those, which are near and convenient to various societies. The Union processes the milk and market in urban area through by various agents. The Union providing service to milk producer's technical inputs like veterinary services, seeds, fodder etc. and also by giving training to farmer and also induction program. The Union strengthening of milk cooperative movement, organization of extension activities and the rural development services. The Union also owns and operates the dairy plant cattle feed plant; fodder and bull mother forms, semen collection station, and herd quarter center for animal husbandry activities. The Union also takes research, development and also other promotional activities for the overall benefit of the farmer. The Union providing various product to market like toned milk, standard milk, full creamed milk, double toned milk, homogeneous standard milk, along with cheese curd, ghee, peda also providing. This is the nature and business carried of the Shivamoga milk Union.
Page 24

3.3 VISIONS MISSION AND QUALITY POLICY: VISION: Total quality Honesty Discipline Cleanliness Transparency Sincerity and dedication Co-operation free of politics Sovereignty Respecting each other's, opinions, ideas & feelings.
MISSION: Dharwad Milk Union is committed to provide maximum possible price for the milk supplied by its members and provide necessary inputs to enhance milk production while ensuring economic viability of the Union and is also committed to provide quality milk products to consumers and emerge as one of the top most milk union of the co-operative dairy industry in the country.
At DMU we Endeavor to satisfy the taste and nutritional requirements of the customers. Through excellence in marketing by DMU committed team, DMU are committed to offering quality products that provide best value for money.
PUNCH LINE: FRESH AND PURE
Page 25

DMU QUALITY OBJECTS AND QUALITY POLICY:
QUALITY OBJECTS:
1) To develop the quality consciousness among all the producers or employees of the
union.
2) To implement the cost reduction in each stage of collection processing and distribution. 3) Make every one aware of the every conservation in dairy. 4) To maximize the customers complaints and achieve customer satisfaction. 5) To set goals or targets at all levels to achieve continuous improvement. 6) To train our workman from time to time for exposure to advanced technology for efficient operations. 7) To provide adequate infrastructure facility for improving the work environment.
INFRASTRUCTURE FACILITIES:
Infrastructure facilities in DMU, they have these won chilling center and they can distribute milk with the capacity of covering the 11 routes and the capacity is 2, 00,00LPD.
Other facilities like: Security facilities Canteen facilities Shift: Three shift per day. Manual punching card and computer entries will be there
Page 26

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 Rs.7 crore Projects of which Government has Rs.2Crosre of share capital and authorized capital of DMU is Rs.5crore.DMU formed 551 milk producer's co-operative societies in Dharwad, Gadag,andHaveri and Uttar Kannada districts. The production capacity of DMU is 2lack liters of milk per day and also has the capacity to produce 12tones of milk powder, 10tones of butter, and 6tones of ghee per day.
DMU is collecting 85 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.
History:
A group of experienced officers, appointed by the Karnataka Milk Federation surveyed the whole of Dharwad districts (includes two newly formed district Gadag and Haveri) and Uttar Karnataka. Further they found out there as a need for a Milk Dairy. They traveled the surrounding villages, educated the villagers 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 the DHARWAD DISTRICT COOPERATIVE 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.
Page 27
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 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.
GOALS OF THE DMU
Generating employment opportunity for rural mass Procurements of good milk Supplying quality milk to the customer in the city for appropriate price
Page 28
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 the0 milk is at room temperature it is to be brought down to 4C to 5 degree 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 72C and 15 seconds, so that all the bacteria and microorganisms may be killed and then the milk is simultaneously cooled to 4C to 5 degree 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.
Page 29
Product Processing
Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the complete milking of one or more healthy milk 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 colostrumsfree 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.
Page 30
Page 31

SOURCE: DHARWAD MILK UNION Status A co-operative society registered under the Co-operative act 1959 Nature of Business Procuring and Marketing of Milk Production and Sale of Milk Products Share Capital Plant Capacity 12,91,92000 corers. 2 Lakhs Liters / day Milk Powder 12 MT /Day Butter 6MT / Day Ghee 6 MT / Day Milk Chilling Centers Gagad Haveri Hirekerur Naragund Ron Sirsi 20,000 LPD 20,000 LPD 20,000 LPD 8,000 LPD 10,000 LPD 20,000 LPD
and Capacity
Present Value of Activity
Collection of Milk Sale of Milk
120,000 LPD
92000 LPD
Area of Operation
Dharwad, Haveri, Gadag, Uttar Karnataka, Goa Parts of Maharashtra
Board of Directors
Elected Member Ex-Officers By Govt.
8 5 3
Total Workers Location Department Kristu jayanti college
291 Workers Lakamanahalli Industrial Area, Dharwad 9 Page 32

Brand Name Products Nandini Milk
Milk Toned Milk, Standard Milk, Shubham Milk Milk Products Butter, Ghee, Peda, Curd, Lassi, Paneer, Milk Powder Co-operative Societies at 730 Societies Village Level 3.4 LAYOUT OF COMPANY: This is the plant existence in industrial area Lakkamanahalli in PB Road.
STRATEGIES OF DMU
The Dharwad Milk Union has the following set of strategies, which will be formulated every year. The present year has the following strategies. The strategies are formulated with the Kristu jayanti college Page 33

help of KMF and NDDB and the union members. Below are the strategies set for this year. STRATEGIES OF PROCUREMENT AND INPUT DEPARTMENT:
To establish 10 new unions in this year. Aims at procuring an average of 70,000 liters of milk. Aims at establishing 15 Artificial Insemination Centers in village units. Aims at marketing 6080 metric tons of "Nandini" fodder for cattle. Aims of setting up of 1296 Veterinary Treatment Camps. Aims at providing Vaccination to 50,000 cattle against Food and Mouth Diseases. Making more milk to powder this year. STRATEGIES OF ADMINISTRATION DEPARTMENT To Check Labor absenteeism. To take actions against in-disciplined workers. To reduce the intake daily workers for petty jobs. Aims at helping the employees to become more responsible towards their work.
STRATEGIES OF PRODUCTION DEPARTMENT Aims at processing an average of 1.10 lakh liters of milk daily Aims at producing Tons 1338 245.74 857.24 135.52 48.22 19.56 537.24 Products Milk powder Butter Bulk Butter Ghee Peda Paneer Curds
There have been plans set to reduce the SNF and FAT content in the milk so as to protect Kristu jayanti college Page 34

the quality of the milk. STRATEGIES OF THE MARKETING DEPARTMENT
Aims at marketing the above products through proper Distribution Channels. Aims to conduct 52 Consumer Awareness Programs and various Seminars. Aims at conducting 10 wholesalers' retailers meeting. Aims at setting 10 Exclusive NANDINII Milk Parlors. Aiming to set up new advertisements strategies like putting up of hoardings. Distributing Pamphlets, contests etc.
Page 35

Nandini Milk and Products details and Rate as per 2010-11 Sl No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Product Name Toned Milk / Liter Standard Milk Subham Milk Subham Milk 5 liter in pack Standard Milk 200 Ml pack Double Toned Milk Curd 200 gm Curd 500 gm Pot Curb 250 gm Bulk Curd Sweet Lassi Masala Lassi F.M. 200ml SMP per kg SMP per ltr Peda per kg Khova per kg Paneer 200 gm pack / kg Paneer Bulk Ghee 200 Ml Pack / Liter Ghee 500 Ml Pack / Liter Ghee 1000 Ml Pack / Liter Ghee 15 kg tin/Kg Butter 10 gm Pack / Kg Butter 100 gm Pack / Kg Butter 500 gm Pack / Kg Maximum Price of Sale 25.00 15.00 20.00 100.00 4.00 23.00 8.00 15.00 7.00 16.00 5.00 8.00 4.00 145.00 140.00 200.00 40.00 200.00 150.00 360.00 441.00 290.00 4120.00 300.00 308.00 520.00 Page 36

27. Butter 50 gm (WDC) Pack / Kg 138.00
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No.
Product Name
Maximum Price of Sale
1.
Badam Powder 200 gm Tin/Kg Badam Powder 500gm Tin/Kg Badam Powder 10 gm Tin/Kg
270.00 345.00 303.00 300.00 75.00 250.00 50.00 15.00 15.00
2.
Mysore Pak 250 gm/Kg Mysore Pak 250 gm pack
3.
Jamoon Mix 200 gm / Kg Jamoon Mix 200 gm / pack
4. 5.
SFM Bottles Milk 200 Ml Pack (Tetra Pack)
Page 37

4. PRODUCT PROFILE Milk Products
HOMOGENIZED TONED MILK: Nandini Homogenized Milk is pure milk which is homogenized and pasteurized. Consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500ml packs.
SHUBHAM: Buffalo s milk, 100% pure pasteurized processed and packed hygienically, this milk has 5%fat and9%snf. Available in 5ooml and 1ltr, and also Available in 5trs packs for marriages, and other functions.
CURD: Nandini curd made from pure milk, its thick delicious Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet
Page 38
MILK POWDER: Enjoy the taste of pure milk! Skimmed milk powder made form pure milk, processed and packed hygienically. Available in 100gms, 200mgs,500gms, 1kg& 25kg Pack
BUTTER:
Rich, smooth and delicious. Nandini butter is made out of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cows milk makes any preparation a delicious treat. Available in100gms(salted), 200gms and 500gms cartons both salted and unsalted
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.
Page 39
GHEE: purity. Nandini Ghee made from pure butter. It is fresh and pure with a delicious flavor. 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.
GOOD LIFE: 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
.Full cream milk Full Cream milk.Containing 6% Fat and 9 % SNF.A rich, creamier and tastier milk, Ideal for preparing home-made sweets & savories.
Gulabjamoon 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
Page 40

Perspective plan 2011: After the closure of 3rdproject.Govt of Karnataka and NDDB signed an MOU feb2000 and further strengthen dairy development activities in Karnataka with an outlay of Rs 250crs. Consequent to the announce of new lending towns conditions by NDDB through evolution of an action plan perspective 2011 to enable the dairy co-operative to face the challenges of the increased demand of milk and milks products By focusing the efforts in the major thrust areas of strengthen the co-operatives. Enhance productivity managing, quality and building a national info net work plans are under implement. The 4 milk union via: Dharwad, Tumkur, Bijapur, Gulburga that were having accumulated losses included for rehabilitation Programme under the centrally sponsored scheme assistance to co-operative which is also implemented.
Future vision: To consolidate the gains of dairying achieved in the state of Karnataka and with a view of to efficiency chill process and market ever developing and increasing milk procurement with an at most emphasize 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 techniques support of NDDB for which an MOU was signed between govt of Karnataka and NDDB on 10 nov 2004.
Page 41

5. ORGANIZATIONAL STRUCTURE
BOARD of president
Directors (8 members) Product president director
Ex officers (5 members)
Govt nominees (3 members)
Procurement Dept
Marketing dept
Administrative dept
Finance dept
Security dept
Transport
Quality control
F.G.S& stores
M.I.S
Accounts & purchase
Organization structure is the skeleton of the organization. It prescribes the formal relationship among various position and the activities. Arrangements about reporting, relationship, how an organization member is to communicate with other members, what roles and procedures exist to guide the various activities performed by the members of all parts of the organization structure.
Organization structure plays a vital role in achieving the organizational goals. Organization structure should be properly designed to facilitate the smooth functioning of the organization. Organization structure of Dharwad milk union consists of BODs at the top. Then president, under whom is the Managing Director. He is the person who is responsible for smooth functioning of the organization. After Managing Director there are managers and Deputy Mangers of various departments who are responsible and accountable for the activities of their respective departments. There are subordinates, supervisors and employees who are directly linked with department managers.
Page 42

DEPARTMENTS
6. ADMINISTRATIVE DEPARTMENT:-
The administration department controls the overall functioning of the organization. The organization consists of the following three levels. 1. Managerial cadre includes Managing Director, Deputy Manager and Assistance manager. 2. Supervisory level includes technical officers and supervisors. 3. Worker level includes labors helpers.
FLOW CHART OF ADMINISTRATION DEPT:
Deputy Manager
Asst. Manager (Board)
Asst. Manager (Personnel)
Admn. Superintendent
Admn. Assistant
Time
Canteen
Security
The Department also handles Canteen, Security and Time Keeping Machine
Page 43

CANTEEN: There is a Canteen in the premise 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. The 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 DEPARTMENT:
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 departments is also maintains separate registers like Store-in Register, Attendance register etc.
PROVIDING FACILITIES:
1. Designing and implementing forms for variety of purpose where some exist across the organization. 2. Allocating space for people, furniture equipment etc as the organization norms. 3. Maintenance and upkeep of office equipments. 4. Attending to small necessary needs of various people working in the organization.
Page 44

EFFECTIVE CONTROL:
1. Maintenances of files, records etc up to date. Collecting and presenting data in the form use full information from the record. 2. Recording and maintaining attendance, leave details, looking after the security needs etc. 3. Reducing the cost of office operation, production costs, without affecting the functioning of the organization.
SKILLS
The skills here refers too the various skills the workers have here theworkers are further divided into three categories. This first category containsthe people who are in the top-management level the second category consists of the supervisors office assistants etc. The third category consists of the supervisors office assistants etc. The third category consists of the workers atthe operational. The first category consist of the people who are in the decision makingprocess in KMF these people are highly qualified few Deputy Managers are toindustries like IRMA, An and dairy for Training.The second category is related to office work and fieldwork. These peopleare also trained in computer Applications, secretarial skills, accounting skillsetc.The third level people consist of the workers who are actually into theoperation these people are also trained into fields like checking the quality of milk processing packing etc.
Page 45

TRAINING SYSTEM The Union emphasizes on training the employees. Most of the traininggiven to the employees here are On-the-Job training and few Off-the-JobTraining. STYLES
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 Training
A) DMU has follows Top to Bottom or Top down style system. B) B) The Styles of the organization is said to follow the participative type thatis the management cadre follow the participative type of administration. Thefact is that for a manufacturing firm like the KMF, Dharwad this type of administration is necessary.The C) Indicators of the Style are: Follows Orders, rules and procedure Is always Reliable, Dependable Watches Details\Prefers to write out Communications Is Rational, Logical, Self-Controlled, Fair and Firm.
Page 46

7. MARKETING DEPARTMENT: STRUCTURE
Marketing Manager
Deputy Manager
Assistant Manager
Marketing Officer
Marketing Supertendent
Marketing Accountants
Marketing Supervisor
Marketing Officer
Marketing Department is very important part of Organization marketing of milk and its products is the greatest responsibility to all the products before losing its quality.
The marketing department of DMU is considerably extensive which covers the area of north GOA, UTTAR KANNADA, HUBLI, DARWAD, GADAG & HAVERI todays market share of DMU is 23%. Kristu jayanti college Page 47
FUNCTION OF MARKETING DEPARTMENT.
1. To prepare the marketing plan at the beginning of every year, taking into demand, sales, production capacity and customer performance. 2. To promote milk and milk products through medices. 3. To study competitors products and their strategies.
consideration the
Nandini. Loose vendors. Private Brand. Others. 06%
23% 57% 14%
Even today large no of the market share lies with the loose vendors who supplies inferior quality of the milk. Therefore it is necessary for the company to undertake an aggressive marketing campaign and educate people about the quality of the milk. STARAGETIES OF THE MARKETING DEPARTMENT: Visit to all roots of individual points by going in a root distribution vehiclefor 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.
Page 48
Strategy Implementation system: Marketing strategy like sales promotional and advertisementactivities of DMU are as follows. Press advertisements Hoardings Wall paintings Rental for KSRTC Buses Banners Vehicles paintings and own hoarding paintings Rate display boards Milk carry bags
COMPETITORS:
Arogya. Spurthi. Bharath. Aditya. Mahalaxmi. Navalur diary Kolhapur. Shree Krishna.
Page 49
DISTRIBUTION CHANNEL
DMU ---Transportation - Dealers - Door Delivery Boys - Consumer.
DMU ---Transportation - Institution. (Institution: Hospitals, Hotels, Hostels etc.)
DMU ---Transportation -Parlours - Consumers. DMU --- Transportation - Day counters - Consumers
SALES PROMOTION: Providing discounts, to agents for increase sales. Incentives. To agents for increase sales.
8.HUMAN RESOURCE DEPARTMENT:
Human resource department is employing the people developing the resources utilizing maintaining and the compensating there services in tune with the organizational requirement with a view to contribute to the goals of organization.
HRD department is one of the very important dept in the DMU. There are total 321 no of employees are performing their best service to organization.
Page 50
In management card - 30 employees. Includes MD, Managers of various depts. Middle level Mgmt - 61 employees.
Includes Technicians, Executives, Supervisors, Chemistries and assistants. Lower Level Mgmt - 230 employees.
Includes helpers, Workers, Operators etc.
FEATURES OF HRD:
Human Resource Department is concerned with employees both individual and as group in attaining goals. It also concerned with behavior, emotional and social aspects of personnel.
It is concerned with the development of HR as per requirement of organization. It is continuous and never ending process. It covers all three levels of organization. {Top, middle, lower level mgmt.} Its aims to attaining the organization common goals.
STYLES:
The Styles of the organization is said to follow the bureaucratic type that is the management cadre follow the bureaucratic type of administration. The fact is that for a manufacturing 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 Details\Prefers to write out Communications Page 51

Is Rational, Logical, Self Controlled, Fair and Firm.
FUNCTIONS OF HRD:
Recruitment and selection:-
HRD looks well being recruitment and selection of employee. Here some procedures following for the search candidates mainly. >Through adds. >Through employment exchange. >Through in service. Afterwards recruitment procedure based on the company rules and recruitment process based on the candidates education, experience, and age. Selection done through the company card according to rules and regulation of company.
STAFF:
The staff deals with the various personnel Policies followed by the Organization. Below are given the personnel policies followed by the Organization.
PERSONNEL POLICIES:
There are around 383 employees working in Dharwad Milk Union. There are various policies followed by the Union. The Human Resource Department is the in Dharwad Milk Union Works as a sub Department of Administration Department.
INDUCTION: After an employee is employed in DMU, he\she has to be made familiar to the union and also known the objective, value, functions and the operations. This helps the employee to interact with senior staff members from various departments.
Page 52

TRAINING AND DEVELOPMENT: The Union emphasizes on training the employees. Most of the training given to the 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 Training Maintenance of Record and Auditing and Most of the Off-the-Job Training includes training programs in An and, Erode etc.
Wage and Salary Administration: Salary as per government scale the salary consists HRA,TA, DA, HRA, PF, SPF,CCA. P.F: Every month an employee contributes 10% of salary to PF and also mgmt contributes 10% of salary. Total 20% of the salary will contribute.
BONUS: Bonus as per the 8.33% Rs 1600 who draws less than Rs 3500. A subsidy paid to the employee on House Building, heat allowance , cold allowance facilities provided by the union.
INSURANCE: This will provided by union to employee as per requirement of employees. SPECIAL FACILITIES:
TRANSPORTATION: For came to work place employee get Rs300/month for motor cycle maintenance, Rs200 for moped 50cc Bike, Rs150 will get for using other vehicle. MEDICINE: An employee will reimburse Rs2500 if he takes treatment as an outdoor patient Kristu jayanti college Page 53

otherwise he will be given Rs3500 if he takes indoor treatment.
CANTEEN: Employee gets facilities at very cheap rate Meal for Rs2.50, Tiffin for Rs1.50, Tea for Rs0.75.
UNIFORMS:-Two pairs of uniform one pair of shoe and one pair of footwear are provided by union. Quarter liter of milk provides to all employees at free of cost daily. LEAVE FACILITY:-DMU providing 30 earned leave, 10 half payment leave out of 10 day leave 5 full day leave, 15 casual leave. Leaves received by the management and salary will be paid according to leave taken. GROSS SALARY: A regular staff member in the Union will have a gross salary consistingof Basic salary, Dearness Allowance, CCA, House Rent Allowance, andConveyance Allowance. There are special benefits given to few employees,like: SHIFT ALLOWANCE: There are separate allowances given to employees working in different shiftlike: First shift Allowance Second shift Allowance Third shift Allowance HEAT ALLOWANCE: Separate allowance is given to those workers working near boilers andother equipments.
COLD ALLOWANCE:
Page 54

Separate allowance is given to workers working in Defreeze or coldstorage. Further there is Uniform code for every employee. The Unionprovides 2 pair of uniforms to the employees every year
HOUSE INTEREST: The employee working in the union can take a loan from other externalsources and the Union will pay half the interest on the capital per month. OTHER BENEFITS :Canteen subsidy, Festival Advance, medical Allowance, surrender Leave. SHARED VALUES These shared values include the mission and vision of the organization. It also includes objective values. Environment Policies etc, KMF, Dharwad has the mission to provide a lucrative market for farmers to sell their milk and to provide best milk to urban customers. Its Vision is to produce more milk and milk Products in the forth-Coming years. KMF, Dharwad also follows environment Policies. The plant doesnt pollute the environment. The organization has its own Effluent Treatment Plant in its own Premises. The Effluents are properly dumped so that on environment hazards occurs. STRUCTURE OF HRM DEPT:
Deputy Manager
Asst. Manager (Board)
Asst. Manager (Personnel
Admn Superintendent
Admn. Assistant
Time
Canteen
Security
Page 55
Dharwad Co-operative milk producers union Ltd., Dharwad
Month and Year wise average milk sales statement (without bulk sales) Month 200304 April May June July August Sept Oct Nov Dec Jan Feb March 58360 58909 58943 58784 60793 60014 58468 58024 58810 59054 55936 56353 200405 56366 56548 54391 54147 54213 52686 50894 50658 52720 51534 53605 54191 200506 55187 54514 52118 52055 52002 52806 52530 53030 54879 53712 56155 56333 200607 58049 59435 58075 56347 56459 54571 54291 55833 54258 52485 51597 52884 200708 53814 52823 50731 49622 49633 50030 48660 51343 51133 51646 51933 53209 200809 55256 56312 54357 53314 52602 52670 51884 52895 51689 51602 54221 55315 200910 52127 53386 51621 51390 52414 52520 52981 51976 52182 53547 54501 55342 58719 59363 57642 57356 58024 57777 58596 59966 NA NA NA NA 2010-11
Page 56
9. 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 payment 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 to types of auditing:
2)Pre-Audit System - done by Finance and Account Department every year. 1) Statutory System - Done by private charted accountants every year.
REPORTING TO THE MANAGEMENT:Every month an audit is submitted to the management by pore audit system. This report contains how many agents defaulted, monthly, receipt and payment a/c etc. SALES ACCOUNT: This section of sales department is concerned with the accounting work of sales. They keep daily records of collection default by the agents other record related to the sales. When demanded quantity is delivered to the agent in morning Chelan will send with that. The agent should remit the amt by evening to any nearest bank to the ledger in case of his default the amt is entered into the ledger against him. The daily turnover of milk is nearly 5lack. Out of two bank Kristu jayanti college Page 57

challans receipts one sent to the bank other is to finance dept. DMU has certain price policy weekly according to marketing strategy.
The structure of finance Department is as shown:
Deputy Manager
Assistant Manager
Finance Officer
Supertendent
Account Assistant
Senior Clerks & Computer Operator
Workers
Helpers
REPORTING TO THE MANAGEMENT:-
Page 58

Every month an audit is submitted to the management by pore audit system. This report contains how many agents defaulted, monthly, receipt and payment a/c etc.
DHARWAD MILK UNION (2010-12) LAKKAMANAHALLI INDUSTRIAL AREA PB ROAD, DHARWAD-580004 2467603,2468380 FAX-0836-2468268 Profit and loss A/C 1-Apr-2011 to 31-Mar-2012
Particular Opening stock Stock milk Stock-milk product Stock-other Stock-P/I 1-Apr-2011 to- 31-Mar-2012 7,92,70,532.28 54,83,252.66 Particular Sales accounts Sale-cattle feed Sale of-milk Sale of-milk products Sale of-P&I Sale-other sales Conversion charges Local sales levy Storage charges 1 Apr-2011 to 31-Mar-2012 1,23,00,99,874.76
10,36,86,874.00
79,12,41,115.00 28,32,71,988.27 1,73,15,086.64 53,43,164.00 2,49,45,795.00 28,80,603.85 14,15,245.00
5,31,85,847.62 86,08,622.00 1,19,92,810.00
Purchases A/C Purchase of feed Purchase ofmilk Purchase of milk products Purchase of others Purchase of-P/I Direct expenses P&IWING expenses Price manufacturing expenses 9,91,19,455.00 73,83,04,247.40 59,84,153.00 6,46,83,327.19 1,83,80,099.87
92,64,71,282.46
Closing stock Stock-milk Stock-milk product Stock-other Stock-P&I 54,85,848.00 2,39,68,214.00 2,14,06,484.40 1,19,08,557.48
6,27,69,103,.88
10,91,17,829.84 3,34,92,214.79
7,56,25,615.05
Page 59

GROSS PROFIT 17,80,09,334,06.
1,29,28,68,978.64 1,29,28,68,978.40
BALANCE SHEET 1 Apr-2011 to 31 Mar 2012
LIABILITIESAs Capital account Reserves &surplus GOVT.LOAN Share capital-A class Share capital-B class Share suspence
at 31-Mar-2012
17,25,78,253.34 3,52,14,021.27 9,60,480.00 3,46,21,000.00 10,11,42,000.00 6,40,752.07
Assets
Fixed assets Fixed assets Investments Investment Current assets Closing stock
Deposits(Ass ets)
As at 31-Mar-2012
11,87,63,781.12
11,87.63,781.12
1,94,85,600.00
1,94,85,600.00
15,62,59,842.11
6.27,69,103.88 1,18,41,837.50 4,50,00,187.60 2,59,60,548.04
Loans(Liability)
Current Liabilities
11,61,50,143.82 4,17,93,670.16 8,18,853.00 2,31,40,778.83 10,90,548.28 1,39,02,726.90 1,12,360.00 5,30,611.88 2,76,59,306.77 16,94,275.00 53,62,000.00 45,013,00 57,80,826.07 56,09,488.57 36,56,202.96 34,84,865.46
GRANTS O.S.L. Other liabilities Salary recoveres Security deposit A\C Unpaid salary/wages A/C Duties&Taxes Sundry creditors DCS Liability Amrutyojane Amrutyojene DCS contribution Profit & loss A/C Opening Balance Current period Less: Transferred
Loan & advances S/Debtors Cash in hand Bank Accounts
73,516.37 97,05,648.63
Page 60
KARNATAKA MILK UNION DHARWAD TOTAL 29,45,09,223.23 TOTAL 29,45,09,223.23
RATIO ANALYSIS
Principal Groups Working capital ( CA-CL) Cash-in-Hand 8,64,094.02 Dr. 1-Apr-2011to31-Mar-2012 5,12,77,023.65 Dr Principal Rotios Current Ratio (CA-CL) Quick Ratio (CA-stock-in-hand-CL) Bank Accounts 2,86,74,597.40 Dr Debt/Equity Ratio (Loans(loability):Capital account + Net profit Bank OD A\C Sundry debtors (due till today) Sundry Creditors 1,57,65,438.73 Dr. 3,72,20,075.29Dr. 2,75,94,241,49.Cr Net Profit Operating Cost % (as percentage of sales A/C) (due till today) 2,93,48,262.10Cr Recv.Turnover in days (payment of Debtors) Sales Accounts Purchase Accounts Stock-in-hand Net profit 96,86,14.982.01Cr 75,47,37,841.27Dr 7,92,70,532.28Dr. 21,24,623.11Cr Return on investment %
Return on Wkg.Capital % (NP/WC) % 1-Apr-2011to31-Mar-2012
1.42:1 0.77:1
0.00:1
Gross Profit %
17.89 %
0.22 % 99.78 %
2.62 days
performance
1.25 %
Wkg. Capital Turnover
18.89
Page 61

(sales AC/WkgCptl) Inventory Turnover (sales Ac/closing stock 12.22
10. PROCUREMENT AND INPUT DEPARTMENT:
Input required per day:
Milk procurement up to 85000 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 manpower
Quality Control:
At different stages of production the officer from the Quality Control department keeps verifying the quality of the products frequently. Any defects or unconformity to standards is immediately reports and necessary measures are taken to correct them. It is only that after the approval of this department the goods can terials are sent to Effluent Treatment Plant (ETP). The buttermilk liquid containing a small percentage of fat content is sold to the soap manufacturers, otherwise it is sent to a special tank with agitator rotating in it. Different chemicals are used and sterilized fresh water is released for agricultural purpose. Caution is taken with regard to the height of the chimney to avoid air pollution.
Steam plant: Kristu jayanti college Page 62

In various steps of production for instance melting of butter to ghee etc., steam is required. This steam is produced in steam production plant where coal is used for this purpose. Everyday nearly 4-5 tones of coal are required. The ash is sold to the brick manufacturer.
THE STRUCTURE OF P&I DEPARTMENT:
Manager (P & I)
Procurement wing
Technical Input Wing
Deputy Manager
Deputy Manager
Assistant Manager
Assistant Manager
Extension Officer
Clerks
Clerks
Helpers
Procurement and input department is play a vital role in the DMU. In any any milk union this department handles the procurement of the milk required amt to the production process. FUNCTIONS OF P&I: Kristu jayanti college Page 63

Procurement of milk from milk producers co-operative societies. Establishment of milk producers co-operative societies. Encouraging farmers to produce more milk. Provide fair price to the good quality milk.
PROCUREMENT OF MILK: Daily procurement of DMU is 80,000 liters/day on average. Procurement of milk seasonally variated from September December the milk productivity is high and in it is low. Milk collection process M summer
Farmers (producer)((((produ cers) Societies
Chilling centers.
Milk union.
Milk procurement process has done all the 365 days and two times a day and procuring milk routes through transportation. DMU making Rs11 for cow milk and Rs13.50for buffalo milk as minimum and other rate will depend on the SNF and FAT. After the chilling the milk is loaded and brought to the near by union. Once milk brought to the union it is rechecked for quality, quantity, freshness and then it sent for the further production process. Kristu jayanti college Page 64

If the milk is spoilt in transit it brought to the notice of concerned society, in case of away society if the milk is spoilt due to carelessness/delay of the driver it is brought to the notice to the contractor who is responsible for the loss.
ESTABLISHMENT OF DAIRY CO-OPERATIVE SOCIETIES:-
This is the important task carried by the P&I dept, societies are established in villages. There should be a min 50 members from societies and there should surplus of 75 liters of milk collection per day. There should be localities should produce milk from buffalo or cow or both, there is cheap elected from members who has ability to run a society successfully he is responsible for selling the shares to the formers who contributed from the societies. Share of Rs100 each should be allocated a society should gather an Rs20, 000 from the society. After registration, a commencing a general body meeting will held with 9 members who are influential and knowledgeable elected becomes director of the societies two as take as secretary and tester. It is the duty of secretary to maintain all records and ledgers of dairy transactions. The tester verifies quality of the milk a sheet a send with the carrier.
PROMOTIONAL ACTIVITIES:-
This dept takes some promotional activities to increase the rate of production of the milk. Veterinary services to keep up the good health of cattle through a) Regular health Camps b) Emergency service round the clock Kristu jayanti college Page 65

c) First aid, Vaccination, Infertility Camps, Fodder Artificial Insemination facilities for improvement of Cattle breed. Facilitating Training Programs regarding management of Cattle. Supply of Fodder to the cattle.
PRICE TO THE PROCURED MILK:The price given below is based on the SNF and Fat Fat content Buffalo. Cows Milk. 6% 3.5% SNF 9% 8.5% Price/Liter 12.60RS 9.75Rs
10.1 DEPARTMENTS OF DMU:
Page 66
11.PRODUCTION PROCESS AND 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 process immediately to avoid spoilage milk with respect to its flavor, texture and taste DCS
Fresh Liquid Milk
Sample Testing
Fat and SNF
Chilling
Storing
Pasteurization
Separation
Homogenization
Storing Kristu jayanti college
Page 67
Packing
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 45 degrees Celsius. This cooled raw material is further stored in a silo of 30,000 liters capacity.
PURPOSE OF CHILLING: This is done to avoid the growth of microorganisms, 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. Packing is done in 500ml and 1000ml and stored in cold storage at 7. PASTEURIZATION OF CREAM:
The milk in bulk is taken to the cream separator. Here, the, cream is separated. The cream Kristu jayanti college Page 68

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 butler fat and buttermilk are separated. The vacuum pump removes excess of moisture and butter comes out of continuous butter making machine (capacity - 1500 kgs/hour). Butler is packed in 100, 200 and 500 gms 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 the salt water with cream and other process is same.
GHEE:
There are 2 Ghee Boiler of capacity 1500 kgs/batch. A Butter of 2.5 tons is melted and is brought to 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 to setting tank through clarifiers. Later Ghee is allowed for cooling (at 30-40) and packed in Tin of Liter, 500 ml and 200 ml of pack and kept in the cold storage.
PANEER: Kristu jayanti college Page 69

If there is excess of milk, then, Paneer is been made. The milk is heated to 900 for 15-20 minutes. Glacial acetic acid is added to milk and then milk is strained through fine muslin cloth. The solid potion is retained and is put in water and then it is put in chilled water and left overnight. 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 12 tons. There are two sections Evaporator and Spray Drier 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 power obtained consists of 4% moisture.
PEDA: Dharwad is famous for its delicious Peda. DMU has separate Peda 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 Toned 'Milk Homogenized & Cow Shubham Milk 3.1% 3.6% 4.5%
FAT
SNF 8.5% 8.5% 8.5%
Page 70
The below table gives a brief idea of the milk products, their fat SNF, moisture Content: PRODUCT Butter Ghee Pannier FAT 83% 99.8% 20% SNF 1% ------------30% MOISTURE 16% 0.2% 50%
The production department the hasfollowing structure:

Manager (Dairy)
Deputy Manager
Office Staff
Asst. Manager Asst. (Accounts) Asst. (Stores)
Technical Officer Clerk Senior Supervisor Typist
Page 71

Junior Supervisor
Dairy Operators
Dairy technician
Dairy Worker
Package of milk:
The company has three machines with double head; six persons for packing the milk. The milk is heated from 70-80 degree temperature and compressed air for filling of milk. Total workers in this department are 24.
Liquid milk weight in grams a) 200 ml=208 +/-3 gms b) 500 ml=517 +/-3 gms c) 10,00 ml=1034 +/-5 gms
Curds weight: 200 gms = 202 +or500 gms = 503+or-2
Film length: a) 200 ml= 100 mm b) 500 ml= 150 mm c) 1000 ml= 230 mm
Page 72

While packaging of milk. The crate is washed from 3 to 5 degree temperature and then the milk is set in crate and the milk is stored in cold room. The temperature of cold room is 2 to 5 degree Celsius.
12. QUALITY CONTROL DEPARTMENT:
DEPUTY MANAGER
ASST. MANAGER
ASST. MANAGER
QUALITY ASSISTANT OFFICER (CHEMICALS)
QUALITY ASSISTANT OFFICER (BACTERIOLOGY)
QUALITY ANALYST
LAB ASSISTANT
QUALITY ASST.
Page 73

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 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:
TEST Temperature Clot on Boiling Acidity Test Alcohol Test Lactometer Fat test SNF Test
REASON Should be below 5 degrees If mill curdles soon after boiling milk is Rejected To test the extent of acidity To check the heat stability of milk To check the density of milk Percentage of fat determined Percentage of SNF determined for pricing SNF=CLR+FAT/4
Page 74
13. ENGINEERING DEPARTMENT
Assistant Manager
Dairy Supervisor
Senior Technician
Junior technician
Dairy Operator
Worker
Page 75
In DMU at every steps ,every department care to ensure the customer. Electrical, Water and Boiler comes Under Engineering Department. Electrical : DMU Countrack based to HESCOM KEB per year 650 KVA (Kilo Voltage Ampere) Dairy 10,000 units current requires Suppose electricity failure 2 Genatore are there
Water: Dairy 4 to 5 Lakh water Required DMU directly pipe line to Malaprabha river water Two Bore well in DMU
Boiler:
Daily 4 to 6 ton coil required.
STORES DEPARTMENT:
STRUCTURE:Stores Superintendent
Stores Assistant (Fds)
Stores Assistant (Gr-2) Kristu jayanti college Page 76

Helpers
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 inventors are of different kind ranging from mechanical, spares, packing items to animal drugs, and stationary and veterinary drugs. There are at least 4000 different inventories.
This 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.
13.1 Finished Goods Stores Department:
The FGS department has the following structure
Assistant Manager
Marketing Assistant
Account Assistant
Dairy Operator
Page 77
Dairy Workers
Finished Goods Stores: This department acts as an interface between production and Marketing Department. It is concerned with maintenance 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 monthly report is submitted to the production. Marketing and Finance Department, as the products as perishable first-in-first-out method of inventory is followed. 13.2 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, quotations 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
STRUCTURE:-
The structure of Purchase Department is as shown:

PURCHASE OFFICER
PURCHASE SUPERINDEDENT

ASST PURCHASE OFFICER
Page 78
HELPERS
14.
SWOT ANALYSIS OF THE WHOLE ORGANIZATION
SWOT analysis is to known the strengths, weaknesses, opportunities, &threats of the organization. 14.1 STRSENGTHS:
Nandini enjoys good brand image. Dharwad milk union is one the leading producer of milk products & it has wide area of Market, Nandini is a trusted house hold brand name, more than two lakhs farmer members were supplying milk. It has large procurement system. Huge infrastructure for processing. Wide distribution network leads to regular and timely supply. It enjoys highest market shares in the packed milk segment. Provides excellent veterinary, vaccination, Extension facilities, Feeds and Fodder seeds supply etc., in the field, which cannot be thought off by any private operator. Hence
Page 79

earned lot of goodwill from member producers, who patronize the union throughout the year. Has earned the distinction of not failing to deliver the milk to market on time throughout the year. There are days with no power supply, no water supply; but there is no day without NANDINI milk supply. DMU is giving highly remunerative and timely payment to its producers & this has a good on suppliers and made Union to be in good financial position. ISO 9001-2000 certificate.
14.2 Weaknesses:
Lack of flexibility in deciding about its operation. No authority over issues like pricing, offering volume discounts etc. The president of KMF and the Board of directors DMU decides it. Perishable commodity. Milk is Perishable commodity it cannot be store in long. Lack of professional manpower. In DHARWAD MILK UNION department heads are not based on qualification. Bureaucratic method of functions. Inadequate sales promotional activity. Due to bad smell that persists causes low sales. DMU Organizational structure does not permit incentive/ reward for good performance of an employee. DMU Company should distribute their product directly to sellers without keeping any middlemen and agents because part of profit is divided between middlemen and agents. Kristu jayanti college Page 80

About 65-70% of the marketing is done directly the rest of 35-40% is done using middle men.
14.3 Opportunities:
There is a phenomenal scope for innovation in product development, packing and presentation. Increasing market demand for milk and milk products. There is scope for developing in unexplored areas for milk processing as Nandini can extend its equity of brand. Addition of buffalo milk will improve market share. Institutional markets, bakeries, hotels etc., are not fully tapped and these can be captured preferably by direct marketing. Diversification of milk products like Peda, Mysore Pak, cashew burfi, lassie, milk powders, masala majjige. DMU is SELLING its products to different states like Tamilnadu, Kerala and Andrapradesh.
Page 81
14.4 Threats:
Increase of competitor's milk vendors in organized sector. Flexibility in commission structure by competitors may attract the distributors. No entry barriers for private players. Low level of consumer awareness in Dharwad and surrounding areas. After liberalization, entry barriers in the dairy industry eased for new entrants. The competition from Co-operatives like Dodla, Heritage, Kamadenu, they producing different milk products which are giving a good competition to the MYMUL .. etc., Plans of major companies like Reliance, ITC to enter into milk market in future.
14.5 LEARNING EXPERIENCE Got complete knowledge of quality testing. Method of maintaining accounts in manner. Learnt about the marketing strategy sales promotion To know about the types of milk and how can it will be stored in the cold storage Proper manner of maintaining punch cards and every time alert security centers Learnt about the distribution channel it contains wide area of networking also speed of operation
OBSERVATIONS
What I observed here that there is a severe lake of consumer awareness about the wide range of products sold
Page 82

The various private brands have been trying to give a really tough competition by giving the agents high trade margins The organization is playing an important role in developing the economic viability of the villages. The powder making plant has taken an vital role in Dharwad Milk Union. The retailer were not satisfied about the commission given to them by DMU. .
14.6 Findings:
Dharwad milk union is serving rural region by way of procuring milk through poor farmers through its formed societies and paying them fair returns. It is contributing for economic upliftment of farmers. Dharwad milk union is equipped with fully automatic systems which ensures total quality maintenance. It has got its own quality control department with fully equipped laboratory and equipments that helps detecting any adulteration or any such other defects. Through the use of advanced technology, Dharwad milk union provides its customers bacteria free and balanced nutritious milk which is very hygienic. The advertisement in local newspaper and local television is very low. Nandini products have a good brand image. Kristu jayanti college Page 83

Pricing strategies of Nandini is appreciated by its customers Proper training programs for farmers are an additional service provided by the company which is improving Nandini popularity among the farmers and ensures quality and consistency of supply of milk from them. Nandini is started with customers contact programs in order to get first hand feedback from its customers about the service by the distributors and its products.
CONCLUSION
It was an exciting experience to us working with DMU Dharwad. From this project we learnt about the marketing tactics used by Dharwad Milk union.
Dharwad Milk Union is reputed organization which has developed its good will in the market to compete with other famous brands such as Arokya, siddhadhara, varana etc. It has to adapt modern technology in the production process and can do better marketing compared with others. It has to increase the rate of commission payable to its agents or retailers.
Dharwad is functioning well for the social as well as economical up-liftment of the rural population. To survive in the market the company needs to adapt an aggressive marketing policy as of competitors.
Last but not least we would like to conclude DMU as good organization to work as well as to interact with people. All the workers and members of the unions nicely motivated us. Kristu jayanti college Page 84
SUGGESTIONS
Organization should try to improve the packaging of the product to prevent leakage. Organization should try to adopt more and more new technology and methods of production to survive in this competitive market. The company should provide some attractive schemes for the regular consumers as well as retail sellers. Dharwad milk union must adopt professionalism in theoverall function of working departments. More ads can be given to products especially for new introduced products in print media, which can attract more consumers. HR department should work on more plans to motivate employees to reduce absenteeism so that company can think of reduction of manpower as it is excess at present. Kristu jayanti college Page 85

Offers performance awards annually to encourage employees, agents and dealers. There is a scope for improvement of quality and brand image as there is a huge competition in the market.
BIBLIOGRAPHY
Books: SubbaRao P(2007) Essentials of HRM Industrial Relations (Himalaya Publication) Vol-2 Edition. Geetanjali press Pvt. Ltd. Bangalore.
K.Ashwathappa and Sridhar bhat,2008, Production and Operation Management (Himalaya publication) Bangalore. Second Edition, 443-567 Philip Kotler ,Marketing management 13th edition.
Reports:
Annual Reports of Dharwad milk union (2009) from HR Department and Finance Department.
Page 86

Websites: Site visited for products of company http://www.nandini.co-op.com
Site visited regarding service provided by the company http://www.kmf.com
Site visited regarding the information about the company http://www.dmu.com
Page 87

11jjcma100 1

Uploaded by

Copyright:

Available Formats

11jjcma100 1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

11jjcma100 1

Uploaded by

Copyright:

Available Formats

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

The objectives of the study were;

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD 3. company profile

NATURE OF BHSINESS PLANT CAPACITY

PRESENT VALUE OF ACTIVITY

Collection of Milk Sale of Milk Elected Members

120,000 LTD 92,0000 LTD 8 5 3

BOARD OF DIRECTORS Ex-Officer By Government TOTAL EMPLOREES 291

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Lakamanahalli Industrial Area, Dharwad 25acres

NANDINI AND SHUBHAM Milk:

CO-OPERATIVE SOCIETIES AT VILLAGE LEVEL

730 Societies Under the DMU

3.1 BOARD OF DIRECTORS

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

KARNATAKA MILK UNION DHARWAD

Providing hygienic milk to urban consumers.

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Cattle Feed Consumed

Dairy Payment to Farmers Rs.Lakhs

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

3.2.3 UNITS OF KMF:

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

The Karnataka Milk Federation consists of:

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

DHARWAD MILK UNION

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

PUNCH LINE: FRESH AND PURE

Kristu jayanti college

KARNATAKA MILK UNION DHARWAD

Kristu jayanti college