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Milk Union
Milk is a pale liquid produced by the mammary glands of mammals. It is the primary source
of nutrition for infant mammals before they are able to digest other types of food. In entire
world India is the highest milk producer. Dairy enterprise is an important occupation of
formers; even 70% of population are involved in agriculture in India.
Dakshina Kannada Milk Producer Union LTD. (DKMUL) is a dairy industry. This union is
located in kulshekar, Mangalore. Dakshina Kannada Milk Producer Union is 8.5km away
from Mangalore airport. This union is established in the year of 1986 covering the Dakshina
Kannada and Udupi district. This is a co-operative institution which is owned and managed
by milk producers.
The DKMUL is procuring milk from village level co-operative societies and distributing 2.25
lakh litres of milk per day and also producing milk products like Ghee, Peda, Buttermilk,
Lassi, Mysore pak and Flavoured milk etc. under the brand name NANDINI which is also a
brand name of KMF (Karnataka Milk Federation) all over Karnataka.
I have been done internship for a period of thirteen days. The internship report is classified
into Introduction, Company profile, Industry profile, Study of functional departments, SWOT
analysis of the company, Findings, Suggestions and Bibliography. The primary data
collection method is done discussion with Production manager, Deputy Manager (admin), HR
staff and personal observations.
Milk forms a vital part of the human diet also it is a white liquid produced by the mammary
glands of mammals. Early lactation milk contains colostrum, which carries the mothers
antibodies to its young and helped reduce the risk of many diseases. It contains many other
nutrients including protein and lactose.
As an agricultural product, milk is extracted from non-human mammals during or soon after
the pregnancy. Dairy farms produced about 730 million tonnes of milk in 2011, from 260
million dairy cows. India is the worlds largest producer of milk, and is the leading exporter
of skimmed milk powder; it exports very few other milk products. The ever increasing rise in
domestic demand for dairy products and a large demand-supply gap could lead to India being
a net importer of dairy products in the future. New Zealand, the European Unions 28
member states, Australia, and the United States are the worlds largest exporters of milk and
milk products. China and Russia were self-sufficient by 2016 contributing to a worldwide
glut of milk. Throughout the world there are more than six billion consumers of milk and
milk products. Over 750 million people are live within dairy farming households.
In almost all mammals, milk is fed to infants through breastfeeding, either directly or by
expressing the milk to be stored and consumed later. The early milk from mammals is called
colostrum. Colostrum contains anti bodies that will provides the protection to the new born
baby as well as nutrients and growth factors. Milk, butter and cream have high levels of
saturated Fat. The sugar lactose is found only in milk.
Harvesting At present
Cows are normally gives milk at least twice a day. Milking time takes about 5 minutes per
cow depending on the type of machine and the how much of milk the cow is producing.
In the past
A cow is ready to be milked when cow udder is full. The farmer has some flexibility when
making a schedule of cow milking times. Usually cows are milked in the early morning and
again in evening. It is possible to milk a cow by hand, however milking a whole herd of cows
twice a day in this manner would take a great deal of time and energy. Before the invention of
milking machines people milked their dairy cows by hand by squeezing gently on the udder
using the thumb and forefinger. Some people continue to milk a little by hand today.
HISTORY OF MILK
Milk business is spread to all over the world. The first farmer in central Europeans and
Britain milked their animals. Spread to Europe (beginning around 7000 before Christ but not
reaching Britain and Scandinavia until after 4000 before Christ) and South Asia. Pastoral and
pastoral nomadic economies, which rely predominantly, or exclusively on domestic animals
and their products rather than crop farming, were developed. The European humans first
consume the milk of other mammals, the following domestication of animals during the
Neolithic revolution or the development of agriculture. This development occurred
independently in several places around the world from early as 9000-7000 before Christ in
southwest Asia to 2500-3000 before Christ in the Americans. The sheep and goats are most
important dairy animal cattle were first domesticated in south west Asia, although domestic
cattle had been independently derived from wild aurochs populations several times since. In
ancient animals were kept for meat and archaeologist Andrew Serrate has suggested that
dairying along with the exploitation of domestic animals for hair and labour, began much
later in a separate secondary products revolution in the fourth millennium before Christ.
Sherratts model is not supported by recent findings, based on the analysis of lipid residue in
prehistoric pottery that shows that dairying was practiced in the early phases of agriculture in
southwest Asia.
Sheep and goats were introduced by southwest Asia to Africa, but the African cattle might
have been independently domesticated around 7000-6000 before Christ. Camels are
domesticated in central Arabia in the fourth millennium before Christ and also been used as
dairy animals in North Africa and Arabian country. The earlier Egyptian records of burn
treatments describe the burn dressings using milk from mothers of male babies. Milk
consumption became common in these regions, as a consequence of European colonialism
and political domination over much of the world in the last 500 years.
Dairy cows spend their days eating, sleeping and chewing their cub. Many large dairy farms
utilize growth hormones and antibiotics during the rearing process to artificially increase a
cows milk production and to decrease the spread of infectious diseases among their cows.
The milk was called the virtuous white liquor in the middle ages because alcoholic
beverages were safer to consume than water.
Industrialization
The Express Dairy preserved milk in three axle milk tank wagon at the Didcot Railway
Centre, based on an SR chassis.
The growth in urban population link with the expansion of the railway network in the mid-
19th century brought about a revolution in milk production and supply. The railway firms
began transporting milk from rural areas to London from the 1840 century and 1850 century.
In 1846 the first such instance was possible, when St Thomass hospital in Southwark
contracted with milk suppliers outside London to provide milk by rail. The western railway
was an early and enthusiastic adopter and began to transport milk into London from
maidenhead in 1860. In 1900 the company was transporting over 25 million gallons milk
annually. The milk trade grew slowly in 1860 century, but went through a period of extensive
structure change in the 1870 century and 1880 century.
Milk
In urban area the demand began to grow, as consumer purchasing power increased and milk
became regarded as a required daily commodity. The last three decades of 19 th century,
demand for milk in most parts of the country doubled. In 1875 the legislation made the
adulteration of milk is illegal, this combined with a marketing campaign to change the image
of milk. The proportion of rural imports by rail as a percentage of total milk consumption in
London grew from 5% in the 1860 century and 96% by the early 20 th century. The supply
system for milk was the most highly organized and integrated of any food product.
In 1870 century the first glass bottle packaging for milk was used. The first company
produced the glass bottle in the New York Dairy Company in 1877. The Express Dairy
Company in England began glass bottle production in 1880. An American inventor Heavy
Thatcher from New York invented glass milk bottle, called Thatchers in common word
Milk Jar in 1884, which was sealed with a waxed paper disk. Later in 1932, the paper milk
cartons were introduced.
In 1863, the French chemist and biologist Louis Pasteur invented pasteurization, a method of
killing harmful bacteria in beverages and food products. Louis Pasteur developed this method
when summer vacation in Arbois, to remedy the frequent acidity of the local wines. He found
out experimentally that it is sufficient to heat a wine about 50-60 . Celsius for a brief time to
kill the microbes and that wine could be nevertheless property aged without sacrificing the
final quality. In honour of Pasteur, the process became and known as pasteurization.
Pasteurization was originally used as a way of preventing wine and beer from souring. In
1880 century the commercial pasteurizing equipment was produced in Germany and that
process had been adopted in Copenhagen and Stockholm by 1885.
India
In India rural area milk is home delivered daily by local milkmen carrying bulk quantities in a
metal container, usually on a bicycle and bike. In other part of metropolitan India milk is
usually bought or delivered in plastic bags and then it is transported to a milk chilling centre,
next transported to the processing plant and then to the sales agent and finally to the
consumer. The current milk chain flow in India is from milk producer to milk collection
agent.
As per 2011 survey made by the Food Safety and Standards Authority of India found that
nearly 70 per cent of samples had not conformed to the standards set for milk. The study
found that due to lack of hygiene and sanitation in milk handling and packaging, detergents
were not washed properly. Eight per cent of samples in the survey were found to have
detergent, that detergents are hazardous to health.
PACKAGING
The glass milk bottles are now a days rare in use. Most of the people purchase milk in bags or
plastic coated cartons. Ultraviolet light from fluorescent lighting can alter the flavour of milk.
So, many companies that once distributed milk in transparent or highly translucent containers
are now using thicker materials that block the UV light. Now milk comes in a variety of
containers with local variants.
The milk is distributed in a variety of sizes, most commonly in aseptic cartons for up to 1.5
litres and plastic screw top bottles. A 1 litre milk bag is starting to appear in the supermarkets,
but not yet popular. The UTH milk is packed in 1 and 2 litre paper containers with a sealed
plastic spout.
BRAZIL
Today the most common form is one litre aseptic cartons containing UHT skimmed, semi
skinned or whole milk, although the plastic bags are still in use for pasteurised milk. In
cartons and plastic bottles higher grades of milk are found. More than one litres of milk
packets are rarely to be seen
CANADA
In some areas 1.33 litres of plastic bags are widely available, although the 4 litres plastic jug
has supplanted them in western Canada. Other common packaging sizes are 2 litres, 1 litre,
500 ml, 250 cartons, as well as 4 litre, 1litre, 250ml aseptic cartons and 500 ml plastic jug.
CHILE
Milk is distributed most commonly in aseptic cartons for upto1 litre, but smaller, snacked
sized cartons are also popular. The most common flavours are present in Chile are chocolate,
strawberry and vanilla.
CHINA
In China sweetened milk is a drink popular with students of all ages and is often sold in
plastic bags complete with straw. Adults who are not wishing to drink at a banquet often
drink milk served from cartons are milk tea.
COLOMBIA
In Colombia milk are sold in 1 litre plastic bags, Croatia, Bosnia, Herzegovina, Serbia,
Montenegro UHT milk is sold in 500ml and 1 litre aseptic cartons. Non-UHT pasteurised
milk is most commonly sold in 1 litre and 1.5 pet bottles. Although in Serbia we can still find
milk in plastic bags.
PARTS OF EUROPE
In most part of Europe milk packages, Sizes of 500ml, 1 litre, 1.5 litres, 2 and 3 litres are
commonly found.
FINLAND
Milk is commonly sold in 1 litre, 1.5 litre cartons, in some places the milk are sold in 2 and 5
litre cartons.
GERMANY
Milks are commonly sold in 1 litre cartons, sold in 1 litre plastic bags are common in 1980
and now it is rare.
HONG KONG
The milks are sold in glass bottles (220 ml), cartons (236 ml and 1 litre), plastic jugs (2 litres)
and aseptic cartons (250 ml).
INDIA
Milks are commonly sold in 500 ml plastic bags and bottles in some parts like in west; it is
still customary to serve the milk boiled, despite pasteurisation. Milk is often buffalo milk.
The flavoured milk is sold in convenience stores in waxed cardboard container. The store
vender also sells many varieties of milk in different sizes, usually in aseptic cartons.
INDONESIA
Milk is sold in 1 litre cartons and small smaller snack-sized cartons are available.
ISRAEL
In Israel the non-ultra-high temperature milk is most commonly sold in 1 litre waxed
cardboard boxes and 1 litre plastic bags. The milk may also be found in 1.5 litre and 2 litre
waxed card board boxes, 2 litre plastic jugs and 1 litre plastic bottles. The ultra-high
temperature milk is available in 1 litre carton bricks.
JAPAN
Milks are commonly sold in 1 litre waxed paperboard cartons, in the middle of the city home
delivery of milk in glass jugs. As seen in china, sweetened and flavoured milk drinks are
commonly seen in vending machines.
SOUTH KOREA
Milk is sold in cartons (180 ml, 200 ml, 500 ml, 900 ml, 1 litre, 1.8 litres and 2.3 litre) and
also sold in (1 litre and 1.8 litre) plastic jugs, aseptic cartons (180 ml and 200 ml) and 1 litre
plastic bags.
PAKISTAN
The milk is supplied in 500 ml plastic bags and carried in jugs from rural area to urban area
and sell the milk.
PHILIPPINES
In Philippines milk is supplied in 1000 ml plastic bottles and delivered from factories to
cities.
POLAND
The ultra-high temperature milk is mostly sold in aseptic cartons (500 ml, 1 litre, 2 litres) in
Poland and non-ultra-high temperature in 1 litre plastic bags and plastic bottles. The ultra-
high temperature milk is commonly boiled, despite being pasteurized.
SOUTH AFRICA
Milk is commonly sold in 1 litre bags, the bag is then placed in a plastic jug and the corner
cut off before the milk is poured.
SWEDEN
In Sweden milks are commonly sold in 300 ml, 1 litre and 1.5 litre cartons and sometimes
they used plastic milk bottles.
TURKEY
In Turkey milkmen serve milk in smaller towns and villages. The milk is usually sold in 500
ml, 1 litre cartons and special plastic bottles.
UNITED KINGDOM
In United Kingdom the glass milk bottles are delivered to the door step by the milkman, the
milk bottles are in pint size and returned empty bottles by the house holder for repeated re
use. The milk sold in supermarkets in aseptic cartons and HDPE bottles. Supermarkets have
also now begun to introduce milk in bags and jugs. Most of the stores stocks imperial size
bottles 1 pint (568 ml), 2 pint (1.136 litres), 4 pint (2.273 litres) and 6 pint (3.408 litres).
UNITED STATES
Milks are commonly sold in gallon (3.78 litres), half gallon (1.89 litres) and quarter (0.94
litres) container of natural collared HDPE resin. The cartons of waxed paperboard are used
for less than one gallon. The bottles are made of opaque PET for smaller, particularly metric
sizes such as 1 litre. The US single-serving bottle size is usually the half pint. The dairies
deliver the milk directly to consumers from coolers filled with glass bottles which are half
gallon sized and returned for reuse. Some good store chains in the United States sells the milk
in half gallons bags, another rectangular cube gallon container design used for easy
arrangement in shipping and displaying is used by warehouse clubs.
URUGUAY
The milk is sold in 1 litre bags, the milk bag is then placed in a plastic jug and the corner cut
off before the milk is poured. Everywhere the condensed milk and evaporated milk are
distributed in metal cans, 250 ml and 125 ml in paper containers, 100 ml and 200 ml in
squeeze tubes and powdered milk is distributed in boxes and bags.
Yakult is probiotic milk like products made by fermenting a mixture of skimmed milk with a
special strain of the bacterium lactobacillus casein Shirota.
When raw milk is stand for a certain time, after that it turns sour. This is the result of
fermentation, where lactic acid bacteria ferment the lactose in the milk into lactic acid. If
milk is prolonged fermentation may render unpleasant to consume. The fermentation process
is exploited by the introduction of bacterial cultures to produce a variety of fermented milk
products. The reduced Pouvoir hydrogen from lactic acid accumulation causes the milk to
undergo a variety of different transformations in appearance and texture, ranging from an
aggregate to smooth consistency. Some of these products include sour cream, cheese,
buttermilk and kefir.
Pasteurization of cows milk initially destroys the pathogens and increases the shelf life, but it
results product spoilage that makes it unsuitable for consumption. This cause it to assume a
pleasant door and the milk is deemed non consumable due to unpleasant taste and it increases
risk of food poisoning. In the presence of lactic acid producing bacteria under a suitable
conditions, ferments the lactose present to lactic acid. The increasing acidity helps to prevent
the growth of the other organisms or slows their growth. At the time of pasteurization these
lactic acid bacteria are mostly destroyed.
To prevent spoilage, milk can be kept refrigerated and stored between 1 and 4 .c in bulk tanks.
In most case milk is pasteurized by heating and then refrigerated to allow transport from
factory farms to local markets. The spoilage of milk can be preventing by using ultra-high
temperature treatment. Milk can be stored unrefrigerated for several months until opened but
has a characteristic cooked taste. Condensed milk is made by removing most of the water;
it can store in cans for many years unrefrigerated can evaporated milk. The most durable
form of milk is powdered milk, which is produced from milk by removing almost all water.
The moisture content is usually less than 5% in both drum and spray dried powdered milk.
Freezing of milk can cause fat globule aggregation upon thawing, resulting in milky layers
and butterfat lumps. These can be dispersed again by warming stirring the milk. The
destruction of milk fat globule membranes, releasing oxidized flavours can change the taste
of milk.
The importance of milk in human culture is attested by the numerous expressions embedded
in our languages, for e.g. the milk of human kindness. In ancient Greek mythology, the
goddess Hera spilled her breast milk after refusing to feed Heracles, resulting in the milk
way.
In many Asian and African countries, butter is traditionally made from fermented milk rather
than cream. It will take several hours of churning to produce butter grains from fermented
milk.
Milk is also mentioned in Holy books. The land of milk and honey reference is contained in
the bible. There is a request to wonder on the milk in the Quran and surely in the livestock
there is a lesson for you, we give you to drink of that which is their bellies from the midst of
digested food and blood, pure milk palatable for the drinkers. The Ramadan fast is
traditionally broken with a glass of milk and dates.
Abhisheka is conducted by Hindu and Jain priest, by pouring libation on the image of a diety
being worshipped, amidst the chanting of mantras, depending on the type of Abhisheka being
performed offerings such as milk, ghee and honey may be poured. To milk someone in the
vernacular of many English-speaking countries is to take advantage of the person.
The word milk has many slang meanings. The word was also used to mean defraud, to
intercept telegrams addressed to someone else, to be idle and a weakling or milk shop. In
the 19th century, milk was used to describe a cheap alcoholic drink made from methylated
spirits mixed with water. In the mid 1930s the word was used in Australia meaning to siphon
gas from a car.
Milk being nutritive as a protective food, is recognised as the most valuable and whole some
food for man. A balanced diet for an adult Indian should include 285g of Indian council of
medical research. But the actual intake per head is much less being only 140g; it ranges from
37 in Kerala to 396 in Punjab. It is much how compared to New Zealand, Denmark, Holland,
Australia or USA Where the per-capita income is over1700g per day.
Though the milk produced in rural areas, the profitable market for milk and its products is
largely urban. In view of these problems by the planning commission has been rightly
recognised that producers co-operatives should be organised in villages to supply milk to the
urban milk supply schemes, milk powder making plants and to the consumers. This will not
only supplies adequate milk to the urban consumers but also brings profitable returns to the
producers.
In agricultural gross domestic products, the Indian dairy sector contributes the largest share.
There are presently around 7000 village dairy co-operative across the country. The co-
operative societies are federated into 170 district milk producers unions, which in town has
22 states co-operative dairy federations.
In the last 3 years the world milk production declined by 2%, according to FAO estimates,
Indian production has increased by 3%. The production of milk in India accounts for more
than 13% of the total world milk producing nations in the world are India, USA, Russia,
Germany and France.
In Karnataka milk federation has been renamed from Dairy Development Corporation. On
4th June1975 four milk union were started in Mysore, Bangalore, Hassan and Tumakur.
To restructure and reconcile the dairy industry the co-operation principle, an integrated
project was launched in Karnataka on June 1974. IT also laid foundation for a new direction
in dairy development, the work bank aided dairy development project in 1975.
Karnataka Dairy Development Corporation was setup to implement the project. Initially the
project was covered 8 southern districts of Karnataka. The multi-level activities were set up
with dairy cooperative societies at gross root levels, milk union at the middle as an apex
body. Dairy development activities continued under operation Flood-11, the activities covered
the entire state except coastal taluks of union Karnataka district. Karnataka milk federation
came into existence and the process of dairy development was continued in second phase
from April 1984.
Cattle and other animals form an important part of the agricultural production system where
setting curds and milk are basic food in many societies. If you review the history of dairying
in most the European and North American countries, one sees the share of liquid milk and set
curds in the dairy industry changing our of economics and technologies development in their
societies, in developing countries like India developing on the level of the dairy industry,
products range from a few indigenous dairy products and raw milk to pasteurised liquid milk
and set curd and a small proposition of other luxury products, thus liquid milk is still the most
important base for developing the dairy industry n developing countries.
India has become the worlds no.1 milk producing country, so it is also rich in set curds with
output in the year 1999-2000 forecasted at 78 million tonnes. Milk has a special role to play
for its many nutritional advantages as in the providing supplementary income to some 70
million farmers in our 500000 remote villages. Indian market is open to wide competition in
both consumer market as well as industries market after liberalization.
There are many factors which influences industrial buying process. They conduct an intense
discussion before purchasing raw materials and buying process passes through different
stages and finally adopt suitable one consumers consider many factors like quality service,
price availability of materials while purchasing the raw material.
The Ayurveda proclaim that habit of intake the cows milk cures all diseases, good sleep.
Sanskrit describes the milk as Jeevaniyam rasayanam which means cows milk promotes
long life and is a rejuvenator.
Cows milk has a sweet essence and post digestive effect and it is recommended by Ayurveda
since it is easier to digest than milk obtained from other animals. The ayurvedic texts
Bhavaprakasha states that daily intake of cows milk is a healthy practice. It is good for
many diseases including Senility disorders. Patients suffering from bone related disorders are
given ayurvedic treatment and massages revolving around milk.
The present study based on transformation in demand and supply of dairy product in India,
identifying that the share of dairy products in the food basket has significantly increased
among both rural and urban consumers. Although demand for dairy product is highly elastic
and related to income, the analysis also slows large regional disparities in production and per
capita availability of milk in India.
After examining various aspects of dairy consumption and production pattern in India, the
policy consideration to improve dairy production. It suggest that to stimulate dairy sector
development and reduce inequality in dairy products consumption in India, milk and milk
product should be included in the diet provided through the midday meal scheme for
primary education children.
The organisation study was covered out at Dakshina Kannada co-operative milk producers
union ltd to achieve the following specific objectives are:
To get an overall view and exposure of origin and growth of the organization, objectives of
the organization, organization structure, product profile and functional departments of the
company.
DATA COLLECTION
Direct method:
The data collection is made by discussion with the employees and understood the work and
responsibility carried by each of them. This helped us to understand clearly the various
departments and their functions. And further discussion with them revealed some key
function and process carried by each department.
Indirect method:
The data is collected from journal, website, published book, and report of the company. The
previous report of an organization study formed basis for shaping this reports.
LIMITATION OF STUDY
Indias dairy sector is expected to triple its production in the next 10 years in the view of
expanding potential for export to Europe and the west. The WTO regulations expected to
come into force in coming years all the developed countries which are among big exporters is
the lowest cost producer of per litre of milk in the world at 27 per cents, compared with the
US63 per cent. Multinational companies are planning to expand their activities to take
advantage of the lowest cost of milk production and increasing production in the country.
Some of the milk producer has already obtained quality standard certificates from in the
authorities. This will help them in marketing their products in foreign countries in processed
form.
In the year 2016, the urban market for milk product is expected to grow at an accelerated
place at 33% per annum to around Rs. 89500 Crore. This growth is going to come from the
greater emphasis on the processor food sector and also by increasing in the conversation of
milk into milk products. By 2010, the value of Indian dairy product is expected to be Rs.10,
00,000 million. Presently the market is valued at around Rs.7, 00,000 million.
India has now become one of the largest producers of milk and value added milk products in
the world. In the past decade the dairy sector in India has shown remarkable development.
Dairy is the place where handling of milk and milk production is done and technology refers
to the application of scientific knowledge for practical purposes. Dairy technology which
deals with the processing of milk and manufacture of milk products on an industrial scale and
it is defined as the branch of dairy science.
Dairying has the long history in India. Dairying has been inherent of Indian culture for
centuries. Milk and milk product has been the integral part of consumption habit, the
contribution of dairying has been the most significant in terms of employment generation as
well as income generation. In olden days dairy was encouraged to make pasteurized butter
mainly for the British army. One of such firm was greater milk supply scheme. After
independence Grate Bombay milk scheme has come into existence. The dairy co-operative
movement has transformed the lives of men and women by providing some measures for the
economic independence. Dairy co-operation has become an instrument in the successful
management of milk supply in the country. After 1940 century dairying was started in an
organized manner.
At the Anand district in Gujarat the dairying was started in an organized manner. Earlier the
milk and milk products were not sold in an organized manner. So a milk producer has to sell
the milk to milk contractors at a low rate. These milk contractors were earning more as they
buy it in a low price and sell it at higher price. The British government introduced the
Bombay milk scheme to supply the milk for Bombay city. So, this farmer went to meet
Sardar Patel to advocate them. He advised the farmers to start a co-operative society at their
own. Farmers had a strike to get the permission to start co-operative society and
pasteurization plant from the British government. Finally, they succeeded to get the
permission from the government. Later Sardar Patel sent the Morarji Desai to organize milk
co-operative society at smaraka village in Gujarat. It was resolved that milk producers co-
operative societies should be organized in each village of Kaira District to collect milk from
their member farmers. All the milk societies would combine into union which would own
milk processing facilities.
Buying milk from the union has been undertaken by the government. When it is done, the
farmers would refer to sell milk to any milk contractor in kaira district. They marked the
beginning of the kaira district co-operative milk producers union limited, Anand. It was
formally registered on December 14, 1946. The main objective of this is to provide proper
marketing facilities for the milk producers of the district. Pasteurizing milk was begun by the
union in June 1948, for the Bombay milk scheme. Two village co-operative societies were
producing about 250 litres a day by a group of farmers. A great incentive was proved by an
assured market to the milk producers in the district. 1948432 farmers had joined village
societies in the end and the quality of the milk handled had increased to 5000 litres a day by
the union. Hence organised form of dairying was marked in Gujarat state.
The better management of national resources to enhance milk production and up gradation of
milk processing using innovative technology was the main aim of Indian dairy industry. Their
venture in the Indian dairy market can be made by multi-national dairy giants in this
challenging scenario and create a profitable situation for both
Since independence, rapid process has been made by the Indian dairy industries. The large
number of modern milk plant and production factories and since been established. It became
possible to locate dairies where land was less expensive with modern knowledge of the
protection of milk during transportation and crops could be grown more economically. These
organised dairies have been successfully engaged in the routine commercial production of
pasteurized bottled milk and various western and Indian dairy products.
CO-OPERATIVE UNIONS
In animal husbandry and veterinary practise, backward integration of the process led the co-
operatives to advances. The system succeeded mainly because it provides an assured market
at remunerative prices for producers milk besides acting as a channel to market the
production enhancement package. The agro system of the farmers is not disturbed by this
system. High quality milk and milk products was enabled to the customers. Contrary to the
traditional system, when the profit of the business was cornered by the middlemen, the
system ensured that the profit goes to participants for their socio- economic upliftment and
common good. Dairy co-operatives account for the major share of processed liquid milk
marketed in the country. Milk is processed and marketed by 170 milk producers co-operative
unions, which federate into 15 sate co-operative milk marketing federation. The strengthening
functioning of dairy co-operatives was the main aim of the dairy boards programmers and
activities, as producers owned and controlled the organisation. Financial assistants and
technical expertise was proved by NDDB supports of dairy co-operatives, ensuring the better
future for Indian farmers. Co-operatives have become synonymous with quality and value for
brand created over the years. Brand like Jersey (CDPL), Amul (GCMMF), Vijaya (AP),
Verka (Punjab), Saras (Rajasthan), Nandini (Karnataka), Milam (Kerala) and Gokul
(Kolhapur) are among those that have earned customer confidence.
It includes 170 milk unions, operates in over 338 districts, covers nearly 108574 village level
societies and is owned by nearly 12 million farmer members. Apart from making India self-
sufficient in milk, these dairy co-operative have established the country has the largest milk
producing nation in the world.
The
Primary Collection of Milk in Aranthodu, Mangalore
The villagers who cover a certain area, who rare cattle get milk and give it to the village area
Milk Co-operative Society, then the milk collected from these villagers will be stored in the
chilling centre and then it is discharged to DKMU.
The NDDB was created in order to promote, finance and support producers- owned and
controlled organisations. NDDBs effort leads to effective co-operative principles and the
good pattern of organization.
Email: dkmul@sancharnet.in
By the end of financial year 1997-98 the union was well established 253 milk producers co-
operative societies and by 2004-05 there were 460 milk producers co-operative societies
under DKMU as a sigh of growth, the society is under DKMU stands in 3rd position in overall
dairy functioning in Karnataka. DKMU is one of the largest co-operative sectors in terms of
sales, assets and net worth.
The dairy co-operative societies collect milk from the producers and then transported to
Mangalore dairy, Manipal dairy and Puttur chilling centre. The average procurement from the
dairy co-operative society is around 52000 to 280000 litres per day and distribution 300000
litres per day. The balance is procured from Hassan Milk Union to meet shortage. It also
produces various milk products like ghee, curd, Peda, milkshake, flavoured milk, paneer, etc.,
besides procurement and establishment of milk. The milk and the milk products are marketed
under the brand name NANDINI. It has become the most popular name in milk products in
Karnataka. These are around 275 to 300 workers at union.
The dairy industries in Karnataka are booming. The Karnataka Milk Federation (KMF) is the
2nd largest Government run co-operative milk federation in the country after Gujarat co-
operative milk marketing federation. It is heading campaign by procuring lakhs of litres of
milk from in and around Karnataka on daily basis.
The first dairy in Karnataka was setup in Kudige, Kodagu on 8 th January 1955. Later
Karnatakas biggest milk processing factory was setup in Bangalore in 1975 in June 1974, an
integrated project was launched in Karnataka to restructure and recognise the daily industry
on co-operative principle and to have foundation for new direction in dairy development. In
early 1975 Dakshina Kannada Milk Union was called as South Canara Milk Producers Co-
Operative union, which established at Manipal under the direction of Manipal industry trust
and National Dairy Development Board (NDDB) providing technical assistance to Udupi,
Kundapur, and Karkala. In 15th February 1998 the government of Karnataka transferred the
management of Mangalore dairy to KMF carrying all taluks of Dakshina Kannada districts.
Thus the Manipal and Mangalore were merged as KMF. The three tier system designed under
Anand pattern co-operation. KMF follows the same pattern
The union has 687 functioning dairy co-operative societies. The union has established 188
women dairy co-operative societies I its jurisdiction, out if which 137 WDCS are under STEP
programme of government of India. The MPCS are having 124830 farmers members out of
which 35548 are women members.
Processing Facilities
Co-operative Business
Members 124380
Establishment
No. of Parlours 18
No. of Franchises 10
Burfi 40 Kgs
Fodder Farms 6
AREA OF OPERATION
OWNERSHIP PATTERN
The DKMU is co-operative form of organisation. The member farmers are the real owners of
the organisation. The organisation forms the bridge between the farmers who are producers
and the customer who consume the milk products. The member farmers elect the person as
chairman of union.
DKMU facilitates the various welfare activities to employees. Salary also includes general
holiday payment. Other benefits are every employee will be given one litre of milk at the
concession rate of 50% in the every year during the occasion of Ganesh Chathurthy and
Ugadi. Half kg of ghee is given at free of cost.
WASHING ALLOWENCE
Every employee of DKMU is paid washing allowance of Rs.75 per month. Every year new
set of uniforms provided to employees.
CONVEYANCE ALLOWENCES
The employees will get the conveyance allowances as cost of petrol as per their designation
basis.
SHIFT ALLOWANCE
The shift allowances are RS.800 for first shift Rs.700 for second shift and Rs.1000 for third
shift.
OTHER BENEFITS
MEDICAL BENEFITS
Employees who draw more than Rs.15000 salary are eligible to medical claim benefits.
FESTIVAL ADVANCES:
VISION
VALUES
Equality.
MISSION
The economic, social and cultural prosperity in the lives of our milk producer members by
promoting vibrant, self-sustaining and holistic co-operative dairy development in Dakshina
Kannada district. To grow continuously offering value added dairy products and gain
customers confidence through innovative practices.
OBGECTIVES
To reach the milk procurement target of 450000 LPD, the union to establish more
number of societies in the uncovered villages.
To give better technical input services to farmers to reduce the cost of production,
making the Animal Husbandry.
The DKMU has planned to cover all DCS (Distributed Control System) with AMCU
(Acute Milk Care Unit) system and also have planned to procure 100% milk.
To give maximum importance for CLEAN MILK PRODUCTION from cow to
consumer.
To increase sale of milk to 450000 LPD by opening more number of milk
Parlour/Franchises, appointing new dealers and framing Cross Functional Marketing
Team.
Strengthening of all production and processing facilities of existing dairy.
Construction of a new dairy with a capacity of 2.5 LPD at Udupi at a cost of Rs.85
Crore.
ORANIZATION PRINCIPLES
The above three are governed by democratically elected board from among the milk
producers. Under the direction of elected boards, DKMU various functional units are
performing the assigned tasks to ensure fulfilment of organization objectives.
PRODUCT PROFILE
Among the many brands of milk, DKMU is enjoying the above average brand locality among
the customers. It could niche for itself in the total market, it has very good distribution
channels, because of its popularity, new retailers make it a point to keep a stock of this brand
which on its research and development.
Due to competition every company should maintain formalities like maintaining quality, low
price giving promotional offers to agents will keep the company in the market to give
challenges to other companies.
Nutrient rich homogenized milk with 3.6% FAT and 8.56% SNF available in 500ml, 1 litre,
and 6 litres.
Karnatakas highest selling and most preferred milk 3.1% FAT and 8.56% SNF content make
this milk the best choice for all purpose available, 250ml, 500ml 1litre, 6 litres and pouches
available in selected market.
Nutritious creamy milk with 4.5% FAT and 8.5% SNF available in 500ml and 1Litre.
Curd
Fresh curd that tastes just like traditional homemade curd can be consumed as such or in
combination with cooked rich or added as ingredient in certain dishes. Available in 200gram,
500gram and 6kg.
Fresh butter milk blended with quality spices to give that enlivening spicy tang of traditional
spiced butter milk. A drink recommended after meal, for easy digestion. Available in 200ml
pouches.
Sweet Lassi
The most refreshing drink made from fresh curd. Best alternative to cool drinks, during
summer and sunny days. Available in 200ml pouches.
Badam, pista, elachi, banana and mango. Sterilised flavoured milk with rich creamy feels
great taste. Available in 200ml take away bottles with shelf life of 3 months at a room
temperature.
Peda is a desiccated sweetened product made from fresh milk & contains 45%Milk solids
and 35% sugar .its is slightly brownish white in colour grainy structure. The products are
hygienically packed. Peda is a nutritious product with delicious taste and having a self-life of
7 days.
Paneer
Ghee
Ghee is very popular milk product and it widely consumed with regular meals. It has unique
pleasant flavour and grainy texture. Ghee is pure clarified butter fat with negligible. Moisture
content. Available in 50g, 100g, 200g, 500g, & 1litre packs and has a self f life of 3 months.
Ice cream
Fresh milk ice cream with the goodness of pure milk and delightful creaminess. Available in a
variety of mouth-watering flavours packed in stunning cones, cups, balls, family packs and
many other groovy packs.
Nandini Bite
The fun sweet that can be enjoyed like a chocolate. It is a tasty bite of gram and flour and
corn flour added with almonds, cocoa, cardmom, ghee, pure milk make. It is a favourite
among children. Available in 25g pieces wrapped in colour full covers.
Made from fresh pasteurised cream for delectable taste, smooth texture and butter some
delight. Tasty enough to relish in a variety of ways. Available in 200g and 500g slabs.
Nandini Butter
Made from fresh pasteurised cream for delectable taste, smooth texture and butter some
delight. Tasty enough to relish in a variety of ways. Available in 200g and 500g slabs.
Nandini Cream
Pasteurised fresh milk cream, used for making ice cream and sweets. Available in 1kg pack
and in bulk.
Fresh pure milk thats 99.5% fat free and with 9.0% SNF. Perfect for a healthy lifestyle
among fitness conscious people and citizens. Suggested for heart patients and also patients
with history of high cholesterol.
Available in 1 litter Tetra Brick packs and 500ml Tetra Fino packs.
Irresistibly smooth and scrumptious gulab jamoons prepared using pure ghee and khova.
Immersed in sugar syrup makes it deliciously soft to readily melt in mouth.
Mouth- watering ladoo for a delectable experience. A perfect sweet for celebrating cherished
moments. Available in 250g packs.
Nandini chocolates
Nandini chocolates are tasty and delightful for all age group. Eclairs, Chitchat, Good life and
Creambite are choice of everyone.
Fresh and tasty Mysore Pak is made from high quality of Bengal Gram, Nandini Ghee and
Cane Sugar. It is a delicious way to relish a sweet moment.
Available in 100g. 250g and 500g PP container shrink-wrapped to preserve freshness. It Can
be stored for 15days.
The business organisation, created for the purpose of carrying on the business, is given a legal
form from the point of view of ownership. Various forms of business organisation in
existence, they are:
Organisation of business in private sector.
Organisation of business in public sector.
Joint sector undertakings.
The structure of the organisation represents the hierarchy of the organisation. It has given
reporting system of the organisation. Thus organisation structure is the pattern of relation
among various components or parts of the organisation. This information prescribes the
relationship among various activities and positions. From the structure of the organisation we
can have the clear about the responsibilities of the various personnel working in the
organisation. Hence organisation structure is the basic framework within the managers
decision making behaviour takes place.
An organisation can be structured in many different ways, depending on their objectives. The
structure of organisation will determines the model in which it operates and performs.
Organisational structure allows the expressed allocation of responsibilities for different
functions and processes to different entities such as:
Branch.
Departments.
Working group and individuals.
Organisation structure determines the manner and extent which roles, power and
responsibilities are delegated, controlled and co-ordinated and how information flows
between levels of management. The company structure is vital to company longevity and
growth. The company forms in many different ways with different leadership characteristics
but with the same objectives. Whatever the motivation for a company to choose an operating
structure, the same principal in business applies stabilizes, strengthen and profit.
The dairy also focuses on developing the human value and potential through various bearing
and development activities provide favourable atmosphere. All these functions are performed
by HR in D.K.M.U.
D.K.M.U management involves objectives and goal, creative problem solving, motivating
employees. The managerial functions are most important to every organisation without
making proper maintenance of managerial department the organisation cannot achieve their
goal.
The functional department refers to different department divided by organisation for the
purpose of make easy work, avoid confusions updates the all organisation work and most
important to achieve organisation goals.
Managing Director
Technical Stores
officers
Quality Stores
assistants
Chemist
Dairy
Supervision
Technician
Subordinates
Functional departments:
Production department
Finance department
Material department
Marketing department
1. PRODUCTION DEPARTMENTS
main work of converting raw materials into semi-finished, semi-finished goods into finished
goods. It depends on what kind of production the organisation done. The people have endless
demand for milk and milk products which is produced by D.K.M.U. It undertakes the
procurement of milk and milk products likewise satisfying the needs and demand of people.
It estimates the demand and according to the demand production is carried out, which
arranges of raw material, finance, and provision for selling is made by D.K.M.U.
The D.K.M.U supplying the milk to the consumers through milk parlour and dealer network.
They are producing toned milk, homogenised milk, shubham milk, Samrudhi milk, curds,
Lassi, butter milk, ghee, Mysore pak, paneer, Nandini bite, khova.
Operating Analysis
The main source raw material of D.K.M.U is village milk societies. Milk is brought from
such village milk societies every morning and evening. This milk is sent from village milk
societies to the chilling centre and then to dairy plant when milk societies. In the dairy plant
the milk is processed i.e., pasteurization, standardisation etc.
Milk Processing
Milk from the societies is first tested and weighted; this is subsequently daily recorded in the
books of accounts. The weighted milk, stored in silos for further processing with the help of
pumps.
Chilling
Milk has a maximum self-life of only 6 hours. While unloading it from passed through
chillier where it gets cooled up to 4 degree Celsius to increase its life time.
Pasteurizing
In ancient times the main difficulty which was faced with regard to storing of milk is the
difficulty to increase the self-life of the milk. Ultimately, Louie pasture found out a technique
for avoiding the short life of the products. He found that its self-life can increased by cooling
the milk to certain degree and then bringing it down to lower temperature. This method has
given better results and accordingly milk could be preserved.
The same method was adapted to preserved wine in those days. Louie pasture found by
destroying T.B. Causing virus, all other bacteria causing organisms could be destroyed
pasteurization milk heated up to 72.c for its 1 second chilled to 4.c.
Standardization
In this process fats are separated from milk by applying centrifugal force method. The fat
particles are broken into uniform particles in a way that fat does not form a layer on the top.
This process is called homogenized process.
Quality check
The quality check or control steps are taken before the milk test and after pasteurization. Milk
from the storage tanks is tested before it is packed for various quality parameters.
Packing
After the entire tests are over, then the pasteuring milk packed in polyethylene pouches, this
method is conducting in all Indian dairy sectors. The crates used for milk pouch packing are
thoroughly cleaned by specially developed crates washer.
Cold storage
These processed milks are then packed and send to cold storage section, where a room
temperature of 4.c should continuously maintain.
Assistance manager
production
Supervisors technical
officers
Technicians
Helpers
In order to implement an effective quality control program, an industry must first decide
which specific standards the product or services must meet. The extent of quality control
actions must be determined (For e.g. the percentage of units to be tested from each lot). Then
real data must be collected (for e.g. the percentage of unit that fail) and the results reported to
management employee. After this, corrective action must be decided upon and taken (For e.g.
defective units must be repaired or rejected and poor services repeated at no charge until the
customer is satisfied). If poor service occurs, a plan must be devised to improve the
production or service process and then that plan must be put into action. Finally the Quality
control process must be going to ensure that remedial efforts, if required have produced
satisfactory results and to immediately detect the new instances of trouble.
An old proverb i.e., we are what we eat. Nutritional status, health, physical and mental
faculties depends on what food we eat. A good quality food has been endeavour from the
earliest days of human existence. The basic requirement for safety food is of food quality.
Food safety implies absence or acceptable and safety level of containment, adulterants,
naturally occurring toxins or any other substances that may be injurious to health on an
determines its value or acceptability to consumers. The quality attribute includes:- nutritional
value, organoleptic properties such as appearance, colour, taste, texture and functional
property.
In the mid 1996 the world population is 5.8 billion, an increase of 31% that is 7.6 billion will
reach in 2020. Approximately 98% of the projected population growth over this period will
take place in developing countries. Firstly estimated that between the year 1995 and 2020 the
developing worlds urban population will double reaching 3.4 billion. This overall increase in
population and in the urban population poses a great challenges to food systems.
Clean-In-Place (CIP)
The Clean-In-Place of a storage done by the operator under the supervision of the processing
supervisor. Shift in change will ensure CIP cleaning is being done with proper procedure or
not.
The supervisor plan the CIP of milk storage tanks in advance and all 3 tanks shall be prepared
before doing the CIP, once the tank is empty flush out the tank with cold water and hot water
with rounded brush to clean the fat things.
Clean the storage tanks manually with a hand brush and detergent at least in 2 days once. The
CIP of storage tanks may be done per the available of time and storage tanks. The nitric acid
circulation in the CIP tanks is generally done once in 3 or 4 days once. The CIP with caustic
solution should be done regularly.
The storage of milk and milk products is a very important aspects, it enhance the self-life of
the products. The processing supervisor monitors the temperature of different products
continuously. The plant manager should have a counter check if proper temperatures are
being maintained in various cold storages. The various products have involves its own
temperature for its better life and good quality, otherwise it may lose its quality. The cold
room temperature recorded schedule maintained by quality control departments.
Refrigeration sections have to maintain required temperature in different store room.
Assistant manager
Technical officer
Chemist
Lab assistant
3. FINANCE DEPARTMENT
Finance takes most crucial part in an organisation. Finance is required in each and every stage
of the business. Without finance a business cannot run in successfully. A business is nothing
but a process of making and maintains money through money.
The finance department of D.K.M.U takes responsibility for organising the financial and
accounting affairs including the preparation and presentation of appropriate accounts,
financial statements, ledger book and the provision of financial information for manager and
auditors.
It can be taken through various sources like after acquisition of finance, the utilisation of
work by finance. The finance department has not only deal with procurement of finance but
also with the proper utilisation of that resources. The basic need of finance is to purchase of
assets, production of goods, marketing, selling etc. The finance department is one of the most
important departments because it takes the decision regarding financial matters.
Money is the lubricants for an enterprise which develops new products, keeps men and
machine at work, encourages management to make progress and creates values. Finance is
necessary for continuous operations of all type of business. All business decisions have
financial implications.
In other words, the financial function is interlinking with other functions like marketing,
personnel, production etc. for that purpose proper management of money or fianc is quite
essential. In large scale enterprises, the management of finance has a separate department
under the control of specialist known as Financial manager. Financial management is the
key for successful running of business operation. Financial management has assumed an
important place in the business management, because the success of business firm largely
depends upon the financial policies which are developed by financial management.
For a financial function accounting section or function is necessary input. Accounting is a sub
junction of the finance. Account generates the information of data relating to operation or
activities of the firm. There must be preparing balance sheet or income statement and
statement of changes in financial position. The information involved in this statement and
reports assists financial manager assessing the past performance of the organisation and
future direction of the firm .it should meet certain legal obligation such as payment of taxes,
it may be direct tax or indirect tax. So accounting and finance are closely related.
Cash section
All cash transaction are performed in this section, voucher preparation, cash receipt etc. are
done in this section.
Inventory section
The person in charge in inventory section should look after the daily production, removal and
closing stock. For this activity he should maintain daily stock register. The closing stock
recorded in the daily stock register.
Accounting section
All Accounting related works are takes place here, the accounting manager controls this
section and he looks cash, inventory and central excess function.
Central excise
Central excise duty is charged on finished goods is equal to number of finished goods. The
central excise on finished goods is checking twice in a month. And after that it levied from 15
to 30 days, if payment of excise duty paid in advance and also it should deduct from the
excise duty payable.
The payment paid by the company such as income tax, export tax, vat, excise duty etc. are
paid by the head office. The important function relating to finance come under in this
departments and all other chargeable activities are come under in this departments. It verifies
the daily sales report of the factory. The source of fund is mainly sales and the application is
cash credit. Apart from these function it makes the purchase order, preparation of sales
budgets and planning in finance. This department provides the fund to factory members and
all other statutory payments etc.
Finance Manager
Accountant
Supervisors
Executive
5. MATERIAL DEPARTMENT
For the production, the most important required item is raw material. Here the material is
milk. The physical commodities used to manufacture or produce the final products. It is the
first stage of operation. Material department plays an important role in D.K.M.U. there are 11
staffs are working in these departments. The materials are classified into 2 types
The control over the materials is very essential. Material department is the systematic control
over the purchasing and stores departments, using of materials so as to have them minimum
cost of material. In D.K.M.U material control departments using computerising the stock
valuation.
Stores department
Materials Manager
Assistants Assistants
In simple sense, Human Resource Department carries the function of employing people,
developing their resources, utilizing, maintaining, compensating their service with job and
organizational requirements with a view to fulfil organisational goals.
FUNCTIONS:
Managerial functions
Planning
Organising
Organising is important to carry out the determined course of action. Organisation establishes
relationship between the employees, so that they can collectively contribute to the achieving
companys goal
Directing
After completing planning and organising the next step is to execute the plan. The basic
function of HR management is to motivate, command, lead and activate people. The willing
Controlling
The next step after planning, organising and directing various activities of HR management is
the performance is to be verified in order to know the functions are performed in conformity
with the plans and direction of an organisation. Controlling also involves checking, verifying
and comparing the actuals with the pre-determined plans
Operative functions
Employment
Job Analysis
It is the process of collection of information and idea relating to various aspects of jobs like
men, machine and material. It involves preparation of job description, job specifications and
job requirements which will help in identifying the nature of human resources
It is a process of estimation of present and future requirement and supply of human resources
based on objectives and long term plans of organisation. It takes steps to change and develop
strength of existing employees in order to meet the future human resource requirements.
Recruitment
Selection
Selection is the process in framing and developing qualification experience, skills, knowledge
etc. of an applicant with objective of appraising the suitability of job
Placement
They are the techniques by which a new employee is improved in the changed surrounding
and introduce to the practices, policies, purpose and people of the organisation. It performs
the function of introducing the employee to the people with whom he has to work such as
peers, supervisors and subordinates. It also moulds the employee attitude by orienting them to
the new working and social environment
1. Performance appraisal
It is the systematic evaluation of individuals with respect to their performance to their job and
their potential for development
2. Training
It is the process of identification of training needs of the individuals and the company. It
performs the function of developing suitable training programmes, helping and advising the
line management in the conduct of training programmes
3. Management Development
It is the process of motivating the executives which identifies the areas in which
management development is needed and evaluates the effectiveness, executive development
programmes.
Bonus
The bonus is given to each employee once in a year on the basis of basic wages of their
company. The company also provides festival allowance to employees.
D.K.M.U provides a Casual leave of 15 days, Committed leave (half day pay leave) 20 days,
Earned leave 30 days.
Section 5 of employees Provident Fund and Miscellaneous act, 1952 empowers the central
government to frame a scheme for the establishment of Provident Fund under the act for the
employees or any class of employees. Employees contribution for the Provident Fund is 12%
of basic wages and employers contribution is 12%. From the 12% of employees basic wage
3.66% goes to employees pension fund.
The wage is paid to the employees by the salary and time basis in the organisation. The salary
is paid on 30 0r 31st of every month. If the workers are worked more than 8 hours in a day,
the additional wage is paid to them.
First aid
Canteen
Waiting room
Uniform
Parking
Transportation
Records are maintained in personnel department
Wage register
Bonus register
Maternity register and holiday register
Technology Information
Human Resource
Management
Production
6. MARKETING DEPARTMENT
Marketing is the process of planning and executing conceptions, pricing, promotions and
distribution of ideas, goods and services to create exchanges that satisfy individual and
organisational objectives. It is the central activities of the organisation which always focuses
the understanding the needs of the customer.
Pricing strategies of the company mainly depends upon the competitors price and raw
materials cost. It contains information system which includes
Daily sales report of the organisation. Day to day sales reports of the organisation
Daily storages details of the stores of the organisation
The marketing department maintains records through different accounts such as follows
Sales account
Cash account
Stock account
Stock transfer register
DISTRIBUTION CHANNELS
The main function of distribution channel is to provide a link between production and
consumption. The D.K.M.U operates its distribution mainly through three major modes.
Agent
Bulk vending booths
Milk parlours
AGENTS:
Agents play an important role in the distribution channel of an organisation. Agents are those
who receive D.K.M.U products in bulk and sell them in retail to the customers for small
amount of profits. They are also known as intermediaries or vendors and these intermediaries
operate in various routes. However D.K.M.U appoints field officers to control the activities
of these agents as per the statistics received for every route. There will be assistant manager
and for every three to four field officers to regulate the activities of the field officers.
There must be potential demands for particular area where they want to start their operation
There must be smooth and free movement of vehicles because if there is no free movement of
vehicle then there will be no proper distribution of products.
SUPPLY OF AGENT
Usually the products of D.K.M.U are supplied through their agent in quantity prescribed by
the agents. The agents are provided with separate phone facility which is linked to marketing
departments. In case of an order the agents are asked to call to this department and place their
order for the quantity required for the day. If the agent is silent and does not specify the
quantity of milk required, then the day previous days consumption shall sent to the agent.
The marketing department will conduct a meeting in which a detail analysis of agent
performance revival programme is carried out and the highest point winners are awarded with
gifts and incentives
MODE OF PAYMENT
Agents are asked to pay their daily consumption in the cash counter within 24 hours in the
cash counter of D.K.M.U; there is also a system wherein challan is sent to the agent along
with the daily purchase record through the delivery boys. The agent can keep that challan and
make the payment.
PARLOUR
All over Mangalore, D.K.M.U operates with different parlours and these are operated with
the expenses of D.K.M.U with prominent locality of the city. These parlours sell all the
products of D.K.M.U at reasonable price. Before establishing the parlour the location must be
clearly observed and accessed because the efficiency of the parlour mainly depends upon the
locality in which it is located.
PACKING
Packing refers to the external container or the wafers in which the product is packed. Most of
the D.K.M.U is packed in polythene packets which are not environmental friendly as its
disposal has created lots of problem for the society as a whole. However there are also many
complaints by the agents by the consumer regarding the defects in packing either due to
deterioration or leakage in the packet. Apart from this, other defects are found every day at
least around 100 litres of milk are rejected by quality control department because of some or
other defects in packing
TARGER MARKET
As milk and milk product are required by many people, D.K.M.U does not follow
segmentation and strategies for group of consumers. It gives more preference to bulk
purchases like
Institutions
Hotels
The payment is not directly collected by the consumers by the firm, In between consumer and
the firm there are agents, who are responsible for collecting the payment. The agents will
collect the cash on behalf of D.K.M.U from the consumers or retailers, after collecting they
have to remit it to the cash section. The retailers will have 24 hours to make the payment.
Suppose, if the retailers are unable to make the payment within the stipulated time, there will
not be supply for next day
ADVERTISEMENT
Distribution channels
D.K.M.U
Customers
Marketing Manager
DY. Manager
Marketing Officer
Sales Executives
Supervisor
Executive
7. ADMINISTRATION DEPARTMENT
Administration department is backbone of an organisation. The overall function of
organisation is controlled by administration department. Payment of salary, arrangement of
meeting, formation of policies and other administration function are looked after by the
administration department.
It collects and presents the data in the form of useful information and maintains upto
date files and records in the organisation
The administration department helps in implementing the organisation systems,
procedures and policies in a coordinated manner
It helps in smooth running of the organisation by interfacing with the external
agencies as required, for example- payment of electricity bills, water supply bill etc.
Ensure the efficient performance of the entire department in an organisation.
The administration department acts as a connecting link between the senior
management and the employees.
It provides motivation to the work force and makes them realise the goal of an
organisation.
Deputy Manager
Admin Superintendent
8. PURCHASE DEPARTMENT
The various materials are purchased by purchase department which are required for other
different departments. Once the stock position is ascertained by the stores department, an
indent is sent by different department which is duly approved by managing director. This
department will then come into picture to purchase those materials
It also maintains records of all supplies, calls for tenders, quotations etc. in which quotation
for lowest rates are sanctioned. Purchase department can make purchases up-to Rs.50, 000/-
If the purchase amount exceeds Rs.50, 000/-, then the approval of board member is must.
Purchase Officer
Purchase Superintendent
Helpers
The goods received are stored in cold storage area under 16 degree Celsius condition and
stored goods are issued on demand by the marketing department. If the stock is out of
demand, the written order is sent back for further certification with regards to present stock.
FGS is concerned with quality dispatching aspect. Other sections do the accounting, clearing
of stores, maintenance etc. Before dispatching, approval of the goods by the quality
department is necessary. A consolidated dairy and monthly report is submitted to production,
marketing and finance department. This FGS department practices the BIN CARD system
and FIFO method is followed.
Policies
Maintain maximum and minimum stock level for inventory so as to avoid twin evils i.e.,
blockage of capital and storage in the disruption of the smooth running of the unit. Ordinary
commodities are maintained in a possible minimum number. Item of urgent nature are easily
available sometimes, so they are stored in sufficient number to meet the future demands.
Manager
Marketing Manager
Dairy Workers
SWOT ANALYSIS
SWOT analysis one of the most used form of business analysis. A SWOT examines and
assesses the impact of internal strength and weakness and external opportunities and threats
on the success of the subject of analysis. An important part of a SWOT analysis involves
listing and evaluating a firms strength, weakness, opportunities and threats.
STRENGTH
WEAKNESS
Transfers that involved in the top management level has an adverse effect on the
organisation.
Every executive in the top level management has their own style of working so it is
difficult to maintain the uniformity in the organisation.
Unpredictable price of the milk causes in the decline factor in sales and the company
cannot depend upon the production of the milk.
Due to bad smell that continues causes low sales results in adequate sales promotional
activity.
Commission given by the company is less compared to other brands.
Recurring quality problem.
Huge requirement of man is needed.
High requirement of working capital is needed.
Raw materials are seasonal.
The organisation is not able to achieve the production of all products.
OPPURTUNITIES
The company has government support as the company had good image and it
produces qualitative products
The company can expand the production capacity by developing the infrastructure
The burden land can be utilised for expansion of infrastructure
As D.K.M.U is the market leader in milk production in Dakshina Kannada district it
has an opportunity in expanding their sales in rural areas
The company has a scope for developing in the new areas
Availability of buffalo milk improves the quality of the milk
Pre-dominant of loose milk segment-divide appropriate strategies for the company
The company has wide opportunity for future expansion
The company can produce innovative product by improving the research and
development department
As the company has the brand image in the market, it can maintain stability in the
market
THREATS
The major threats to the company are competitors, however, D.K.M.U is the market
leader in this area
The increase in the land value is the greatest threat to the organisation
There are more numbers of competitors specialised in various milk products that can
hit hard on D.K.M.U products
The demand of the customers for the product is not satisfied as decrease in
procurement of the organisation
Low level of consumer awareness
Many multi-national companies are stepping into the market with modern
technologies
Growth of private enterprise in the sector
Government policies
FINDINGS
SUGGESTIONS
The dairy has burden land which can be used in building the infrastructure which
results in expansion of business unit
The sales of milk product can be increased by adopting innovative promotional
activity
The company has the good image so it can try to increase the sales by increasing the
production of various products
They should try to decrease the cost of the product without making much changes in
the quality and quantity of the product
The manufacturing, selling and distribution cost must be decreased in order to gain
more reliable profit
More innovative product must be produced so that it can capture the new market
Efficient utilisation of the resource must be done and it should decrease the wastage
New technologies must be adopted so that it can give tough competition for its
competitors
The machineries must be set up in proper manner so that it can utilise the available
space
The water must be purchased from outside to avoid the water problem
The company has good opportunity in acquiring the whole market by increasing the
sales in rural areas though it has good image in the market
It has good name and fame in the market as it is used by most the people in south canara.
There is sufficient demand for its products in the market. In recognition of the outstanding
work done by the company, it has been honoured as the BEST DAIRY in the district inspite
of the healthy completion faced by its competitors.
The method of maintaining accounts is in proper manner but in store department still the
modern electronic system is missing and they should soon adopt it for reducing the paper
work as well the work load of the stores manager.
The study enabled to understand how the decision making process is carried out in an
organisation at various levels. The organisation has utilized the extent of technological
changes including Information and Communication Technology for various functional
activities.
The organisational study helped in improving both theoretical and practical knowledge. It
was beneficial as it helped to gain confidence and awareness of the organisation.