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KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
1
ACKNOWLEDGEMENT
This gives me a heavenly delighted pleasure to
write an acknowledgement to this project report
Because this report is an Contribution of large
number of people
Firstly I would like to Thank our Principal DrAjith
Prasad sir for giving us this opportunity to do the
project work
I am also Thankful to our HOD Prof Sharad
Desai for his encouragement and guidance I am
also thankful to Prof NL Guddin for provinding us
the Guidelines and constant support throughout
the project I would also like to Thank ProfVibha
Mogali for her guidance
I am Thankful to KMF for giving me this
opportunityI specially Thank MrRaghuramR for
teaching me about the working of all Plants and
Products
Finally I am Thankful to my Parents and Friends
for their moral support throught the project work
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
2
mdash
INDEX
SLNO PARTICULARS PAGE NO
01 Introduction 01
02 Company profile 04
03 Introduction of DMU 05
04 History 08
05 Vision and mission 09
06 Function of DMU 10
07 Scope of objectives 11
08 Organization chart 13
09 Production profile 16
10 Department 19
11 SWOT annalysis 48
12 Suggestion 51
13 Conclusion 52
14 Bibliography 53
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
3
I) EXECUTIVE SUMMARY
In todayrsquos competition world no business is spared from the competition even
the basis need industries like milk industries are facing the problems so the
companies should look at the consumerrsquos attitude towards their products and if
anything goes wrong they should suddenly rectify it
We got an insight observation about the different departments and products of
Nandini Milk Our external Guide Mr Raghuram R Was kind enough to show each
and every process of production of different production and patiently explained it to
us
We had a very Enlightening Experience
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
4
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
5
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
6
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
2
mdash
INDEX
SLNO PARTICULARS PAGE NO
01 Introduction 01
02 Company profile 04
03 Introduction of DMU 05
04 History 08
05 Vision and mission 09
06 Function of DMU 10
07 Scope of objectives 11
08 Organization chart 13
09 Production profile 16
10 Department 19
11 SWOT annalysis 48
12 Suggestion 51
13 Conclusion 52
14 Bibliography 53
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
3
I) EXECUTIVE SUMMARY
In todayrsquos competition world no business is spared from the competition even
the basis need industries like milk industries are facing the problems so the
companies should look at the consumerrsquos attitude towards their products and if
anything goes wrong they should suddenly rectify it
We got an insight observation about the different departments and products of
Nandini Milk Our external Guide Mr Raghuram R Was kind enough to show each
and every process of production of different production and patiently explained it to
us
We had a very Enlightening Experience
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
4
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
5
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
6
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
3
I) EXECUTIVE SUMMARY
In todayrsquos competition world no business is spared from the competition even
the basis need industries like milk industries are facing the problems so the
companies should look at the consumerrsquos attitude towards their products and if
anything goes wrong they should suddenly rectify it
We got an insight observation about the different departments and products of
Nandini Milk Our external Guide Mr Raghuram R Was kind enough to show each
and every process of production of different production and patiently explained it to
us
We had a very Enlightening Experience
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
4
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
5
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
6
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
4
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
5
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
6
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
5
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
6
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
6
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
7
General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk ndash mostly from cows or goats but also from buffalo sheep horses or
camels ndash for human consumption A dairy is typically located on a
dedicated dairy farm or section of a multi-purpose farm that is concerned
with the harvesting of milk
Terminology differs between countries For example in the United
States a farm building where milk is harvested is often called a milking
parlor In New Zealand such a building is historically known as a
milking shed or milking parlour (note the different spelling)
Sometimes milking sheds are referred to by their type such as herring
bone shed or pit parlour In some countries especially those with
small numbers of animals being milked as well as harvesting the milk
from an animal the dairy may also process the milk into butter cheese
and yogurt for example This is a traditional method of producing
specialist milk products especially in Europe In the United States a dairy
can also be a place that processes distributes and sells dairy products or
a room building or establishment where milk is stored and processed into
milk products such as butter or cheese In New Zealand English the
singular use of the word dairy almost exclusively refers to a corner shop
or superette This usage is historical as such shops were a common place
for the public to buy milk products
As an attributive the word dairy refers to milk-based products veil
derivatives and processes and the animals and workers involved in their
production for example dairy cattle dairy goat A dairy farm produces
milk and a dairy factory processes it into a variety of dairy products
These establishments constitute the dairy industry a component of the
food industry
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
8
Operation of the dairy farm
When it became necessary to milk larger cows the cows would be
brought to a shed or barn that was set up with bails (stalls) where the
cows could be confined while they were milked One person could milk
more cows this way as many as 20 for a skilled worker But having cows
standing about in the yard and shed waiting to be milked is not good for
the cow as she needs as much time in the paddock grazing as is possible
It is usual to restrict the twice-daily milking to a maximum of an hour and
a half each time It makes no difference whether one milks 10 or 1000
cows the milking time should not exceed a total of about three hours
each day for any cow
As herd sizes increased there was more need to have efficient milking
machines sheds milk-storage facilities (vats) bulk-milk transport and
shed cleaning capabilities and the means of getting cows from paddock to
shed and back
Farmers found that cows would abandon their grazing area and walk
towards the milking area when the time came for milking This is not
surprising as in the flush of the milking season cows presumably get
very uncomfortable with udders engorged with milk and the place of
relief for them is the milking shed
As herd numbers increased so did the problems of animal health In New
Zealand two approaches to this problem have been used The first was
improved veterinary medicines (and the government regulation of the
medicines) that the farmer could use The other was the creation of
veterinary clubs where groups of farmers would employ a veterinarian
(vet) full-time and share those services throughout the year It was in the
vets interest to keep the animals healthy and reduce the number of calls
from farmers rather than to ensure that the farmer needed to call for
service and pay regularly
Most dairy farmers milk their cows with absolute regularity at a
minimum of twice a day with some high-producing herds milking up to
four times a day to lessen the weight of large volumes of milk in the
udder of the cow This daily milking routine goes on for about 300 to 320
days per year that the cow stays in milk Some small herds are milked
once a day for about the last 20 days of the production cycle but this is
not usual for large herds If a cow is left unmilked just once she is likely
to reduce milk-production almost immediately and the rest of the season
may see her dried off (giving no milk) and still consuming feed for no
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
9
production However once-a-day milking is now being practised more
widely in New Zealand for profit and lifestyle reasons This is effective
because the fall in milk yield is at least partially offset by labour and cost
savings from milking once per day This compares to some intensive farm
systems in the United States that milk three or more times per day due to
higher milk yields per cow and lower marginal labor costs
Farmers who are contracted to supply liquid milk for human consumption
(as opposed to milk for processing into butter cheese and so onmdashsee
milk) often have to manage their herd so that the contracted number of
cows are in milk the year round or the required minimum milk output is
maintained This is done by mating cows outside their natural mating
time so that the period when each cow in the herd is giving maximum
production is in rotation throughout the year
Northern hemisphere farmers who keep cows in barns almost all the year
usually manage their herds to give continuous production of milk so that
they get paid all year round In the southern hemisphere the cooperative
dairying systems allow for two months on no productivity because their
systems are designed to take advantage of maximum grass and milk
production in the spring and because the milk processing plants pay
bonuses in the dry (winter) season to carry the farmers through the mid-
winter break from milking It also means that cows have a rest from milk
production when they are most heavily pregnant Some year-round milk
farms are penalised financially for over-production at any time in the year
by being unable to sell their overproduction at current prices
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
10
II) KARNATAKA MILK FEDERATION
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 27 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 To ensure supply of quality germ
plasma bull breeding farm and frozen semen bank are also available
Karnataka Cooperative Milk Producers Federation Limited (KMF) is the apex
Body in Karnataka representing Dairy Cooperatives It is the third largest dairy co-
operative amongst the dairy cooperatives 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 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 Ksheer Sagar magazine monthly
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
11
III) Company profile
Name of the company Dharwad co-operative Milk (A unit Of KMF)
Producerrsquos societies union LTD
Constitution Limited
Phone 2467603 2468268
Fax (0836) 2468268
E-mail wwwkmfnandinicom
Registered office Bangalore
Company registration No 1959
Date of incorporation
amp date of establishment 3-3-1986
Board of directors elected members-8
Ex-office-5
By govermant-3
Area of operation Dharwad haveri gadag uttarkannad district
Location lakamanahalli industrial Area dharwad
Department 9
Brand name Nandini
Products Milk-Toned milk Standard milk shubham Milk
Milk-products-Butter Ghee Curd Ladu
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
12
INTRODUCTION TO DMU (DHARWAD MILK UNION)
Dharwad Milk Union (DMU) came into existence on 3-3-1986 DMU was
established under co-operative act on 3-3-1986 at Dharwad and Gadag Haveri Uttar
Canara and Dharwad come under its operation
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 Rs7 crore Projects of which Government has Rs2Crore of share
capital and authorized capital of DMU is Rs5crore
DMU formed 551 milk producers co-operative societies in Dharwad Gadag
Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lack littres 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 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
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 Anand Gujarat
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
13
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 producers 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
Shivmoga milk Union
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 1
00000 LPD
Other facilities like
Security facilities
Canteen facilities
Shift Three shift per day
Manual punching card and computer entries will be there
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
14
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 Uttara 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
DHARW AD DISTRICT CO-OPERATIVE MILK
PRODUCERS SOCIETIES UNION LIMITED Further in 1988 the Raipur
Dairy and Chilling Center setup in 1968 also came under the union In 1989 the
training center which was controlled by KMF came under Dharwad Milk Union
DMU was a Rs7 crore project of which Government has Rs2 crore of share
capital and authorized capital of DMU is Rs5 crore
DMU formed 55 I-milk producers co-operative societies in Dharwad Gadag
and Haveri and Uttar Kannada districts
The production capacity of DMU is 2 lakh liters of milk per day and also has
the capacity to produce 12 tones of milk powder 10 tones of butter 6 tones of ghee
per day
DMU is collecting 70 thousand liters of milk per day from its societies and
sells 60 thousand liters of milk per day and the remaining milk is used for producing
milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
15
VISION STATEMENT OF DMU( As stated by DMU)
Total quality
Honesty
Discipline
Cleanliness
Transparency
Sincerity and dedication
Co-operation free of politics
Sovereignty
Respecting each others opinions ideas amp feelings
MISSION STATEMENT OF DMU(In their Words)
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
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 DCSs are carrying out their activities properly and in an efficient
manner
To see that the milk is brought from DCSs to the chilling centers in the prescribed
time
To look the accounts of the DCSs supervise the purchase process and market the
milk and milk products
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
16
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 middlemens 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
OBJECTIVES of DMU
To develop the quality consciousness among all the producers or employees of the
union
To implement the cost reduction in each stage of collection processing and
distribution
Make every one aware of the every conservation in dairy
To maximize the customers complaints and achieve customer satisfaction
To set goals or targets at all levels to achieve continuous improvement
To train our workman from time to time for exposure to advanced technology for
efficient operations
To provide adequate infrastructure facility for improving the work environment
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
17
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 3 crores Approx
Plant Capacity 2 Lakhs Liters day
Milk Powder 12 MT Day
Butter 6 MT Day
Ghee 6 MT Day
Milk Chilling Centers and
Capacity
Gagad 20000 LPD
Haveri 20000 LPD
Hirekerur 20000 LPD
Ron 10000 LPD
Sirsi 20000 LPD
Present Value of Activity Collection of Milk 180000 HPD
Sale of Milk 80000 HPD
Area of Operation Dharwad Haveri Gadag Uttar Karnataka Goa Parts of
Maharashtra
Board of Directors Elected Member 8
Ex-Officers 5
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
18
By Govt 3
Total Workers 272 Workers
Location Lakamanahalli Industrial Area Dharwad
Department 9
Brand Name Nandini
Products Milk
Homoginized Toned Milk Standard Milk Shubham Milk
Milk Products
Butter Ghee Pedha Curd Lassi Paneer Milk Powder
Co-operative Societies at
Village Level
960 Societies
s
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
19
Presidents
Director
(Elected-8)
Director
(Ex-officer-5)
Directors
(Presidents
Director
Ex-officer-5)
Nomi
Directors
Nominated-3)
Managing director
PampI Production Finance Admin Security Marketing
Dy
Manager
Dy
Manager
Dy
Manager
Dy
Manager
Sr
Supervisor
Dy
Manager
Extension
Officer
QC
Officer
Acs
Assistant
Assistant JrSupervis
or
Assistant
Helper
Helper Helper
Assistant Helper
Workers
ORGANIZATION CHART
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
20
NANDINI PRODUCT DETAILS AND RATE (NMP PRODUCTS)
Sl No Product Name Maximum retail
price
1 Badam Powder 200 gm TinKg 267-86
2 Mysore Pak 250 gmKg 267-86
3 Jamoon Mix 200 gm Kg 223-21
4 Homoginized milk 33-60
5 Shubham milk 33-68
6 Toned milk 29-76
7 Curd bulk 33-12
8 Dharwad pedha 192-00
9 Bulk khova 215-00
10 Bulk paneer 183-93
11 ghee 318-18
12 Milk powder 240-91
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
21
PRODUCT ndashPROFILES
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
22
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
23
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
24
DEPARTMENTS (DMU has Following Departments)
Procurement and Input Department
Production Department
Purchase Department
Finance and Accounts Department
Administration Department
Marketing Department
Quality Department
Security Department
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
25
PROCUREMENT DEPARTMENT This Department collects milk The raw
materials from farmers and other such associates
Flow Chart of Procurement Department
Manager
Procurement wing Technical wing
Deputy Manager
Assistant Manager
Extension officer
Deputy Manager
Assistant Manager
Clerks Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
26
PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and
input ie technical facilities Once a milk societies established the PampI
department starts functioning and makes other provisions
Milk procurement process done all the 365 days and two times a day and DMU
procuring milk routes will for the purpose of convenience of transportation
DMU making a minimum Rs8 for cow milk and Rs 1050 for buffalo milk Some
times price may vary with quality
Procurement of milk varies from season to during flash season ie from
September to late December the milk productivity will be high During summer it
will come down
Milk collected from the societies is taken to the nearest chilling centers Here the
Quality Ie fat and SNE content is checked and confirmed with that of the
checklist sent by the society
Then milk is loaded into tankers to be taken to the union There are nearly 8
chilling centers under the Dharwad Milk Union and about 513 milk societies
Once milk is brought to the union it is rechecked for the Quality and freshness and
then down loaded and directed to the production department
If the milk is spoiled it is brought to the notice of the society immediately But in
case of far away the driver then the contractor held responsible for the loss if
milk sent by tankers spoils societies due to the delay As per the law of the
society recommended by the union states that the members should supply milk
only to the union and other agency The extension officer at various chilling
centers takes care of this
They keep an eye over the functioning and avoid society milk to any other agency
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
27
INPUTS
To upgrade the functioning and expand the productive capacity of each society the
union provides many facilities
1 Remunerative price for the milk produced
2 Animal husbandry and veterinary health care programmed for the member
animals
3 Cross breeding programmers
4 Supplying powder seeds for animal development
5 Imparting training to all the members of co-operatives for smooth functioning
of co-operatives
6 Subsidized cattle feed to the members of the society
7 DMU has 13 Doctors to provide door-to-door service
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
28
PRODUCTION DEPARTMENT This department Handles the production
process
Flow Chart of Production Department
Deputy Manager Production Deputy Manager Production
Technical Officer Powder Plant Technical Officer Processing
Technical Officer Butter amp
Ghee
Operators
Operators
Dairy Workers
Dairy Workers
Helper
Helper
Manager dairy
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
29
PRODUCTION DEPARTMENT
The production department is nerve of the entire organization
The objectives of the production department
To follow up the production schedule as per the plan
To maintain the close and co-ordinate relationship with other key departments
To upgrade the technical efficiency of production
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 amp 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 buffalos milk are separately received and sent to the production section
separately through two different stainless steel pipes
Later the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius This cooled raw material is further stored in a silo
of 30000 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 7deg
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
30
PASTEURIZATION OF CREAM
The milk in bulk is taken to the cream separator Here the cream is separated
The cream is passed through cream Pasteurization Unit This cream is sent to Butter
Section The milk with no fat is skimmed milk This skim milk is pumped back to
Pasteurization Unit and heated to 72deg using steam and chilled to 4deg 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 90deg and allowed to cool to 30deg 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 butter milk are separated The vacuum
pump removes excess of moisture and butter comes out of continuous butter making
machine (capacity - 1500 kgshour) Butler is packed in 100 200 and 500 gms and
also in 10 25 gms these are stored in deep freezer room with temperature - 22deg 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 kgsbatch A Butter of 25 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 30deg-40deg) and packed in
Tin of Liter 500 ml and 200 ml of pack and kept in the cold storage
PANEER
If there is excess of milk then Paneer is been made The milk is heated to 900
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
31
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 ndash Evaporator and Spray Drier through
which milk is converted to Milk Powder In Evaporator milk is boiled for 55deg 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
PEDHA
Dharwad is famous for its delicious Pedha DMU has separate Pedha section
About 80 Liters (depends upon the demand) is heated continuously for 3 hours till the
milk is semi-solid later sugar and other ingredients are added and stirred continuously
on low flame Later it cooled and it is shaped in small balls and packed
Input per day
1 Milk processed is 70-75 thousand liters
2 5 to 6 lakh littres of water
3 10000 units of electricity
4 5 to 6 tones of coal
5 Generator in case of electricity failure out manpower
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
32
PURCHASE DEPARTMENT Its responsibility is to look after the purchasing
Process
Flow chart of purchase department
Purchase officer
Asst purchase officer
Helpers
Purchase officer
Purchasing superintendent
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
33
PURCHASE DEPARTMENT
As usual in any organization this department is engaged with purchasing of goods
ordered by the stores department
Dharwad milk union to maintain smooth functioning of all the departments to meet
the requirements at a right time
FUNCTIONS OF PURCHASE DEPARTMANT
Receiving indent (requirements) from various departments
Purchase material materials
Calling tenders for vehicles and sending quotation
Maintain comparative statements of all suppliers ie terms and
conditions
Sending the items purchased to quality control section for quality
checkup
Returning the defective goods to respective suppliers for replacement
In making purchase decision the opinion of -
1 Finance officers
2 Audit department
3 Audit department will be considered
4 Then finally MD approval will be taken
This department has liberty to purchase goods upto worth Rs 50000- beyond this
board is concerned for instance like machinery which cost lakh of rupees is a major
policy decision hence are left the board of Directors
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
34
FINANCE DEPARTMENT It handles all the Finance matters
Flow Chart of Finance Department
Deputy Manager
Asst Manager
Asst Accounts Officer
Asst Accountants
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
35
FINANCE AND ACCOUNTS DEPARTMENT
Accounts department is one of the important departments for healthy and
smooth running of business
Functions of finance department and Accounts department
1 Preparation of financial statements
2 Preparation of procurement and transportation charges bill
3 Payment of water bill electricity bill and miscellaneous
4 Payment of supplierrsquos bill
5 Payment to farmers for procurement of milk
6 Maintaining account of sale of milk and milk products
7 Preparation of Budget
DMU Follows to types of auditing
1 Pre-Audit System - done by Finance and Account Department every year
2 Statutory System - Done by private charted accountants every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
36
ADMINISTRATION DEPARTMENT It looks after the general
administration of the company
The department has the following structure
The Administration Department controls the overall functioning of the organization
The organization consists of the following three levels
Managerial cadre includes Managing Director Deputy Manager and Asst Manager
Supervisory level included technical officers and supervisors
Workers levels includes labors helpers
The Department also handles Canteen Security and Time Keeping
Deputy Manager
Asst Manager (Board) Asst Manager
(Personnel)
Admn Superintendent Admn Superintendent
Admn Assistant Time Canteen Security
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
37
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
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 DetailsPrefers to write out Communications
Is Rational Logical Self-Controlled Fair and Firm
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
38
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
RECRUITMENT amp SELECTION
Due to registration termination retirement and transfers in the concerned
department head will give the manpower requirement along with the job description
according the HR department arranges for recruitment
The manpower sourcing is done through advertisement manpower consultant
employment exchanges and personnel reference and available data bank
PROMOTION AND TRANSFER
Promotion is solely on the basis of sensitivity and experience Transfers are
always accompanied by promotions
INDUCTION
After an employee is employed in DMU heshe 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
TRAINING
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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
39
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
Most of the Off-the-Job Training includes training programs in Anand Erode
etc
SALARIES AND EMPLOYEE BENEFITS
Gross Salary
A regular staff member in the Union will have a gross salary consisting of
Basic salary Dearness Allowance CCA House Rent Allowance and Conveyance
Allowance There are special benefits given to few employees like
Shift Allowance
There are separate allowances given to employees working in different shift
like
First shift Allowance
Second shift Allowance
Third shift Allowance
Heat Allowance
Separate allowance is given to those workers working near boilers and other
equipments
Cold Allowance
Separate allowance is given to workers working in Defreeze or cold
storage Further there is Uniform code for every employee The Union provides 2 pair
of uniforms to the employees every year
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
40
House Interest
The employee working in the union can take a loan from other external
sources and the Union will pay half the interest on the capital per month
Other benefits
Canteen subsidy Festival Advance medical Allowance surrender Leave
Skills
The skills here refers too the various skills the workers have here the workers
are further divided into three categories This first category contains the 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 at the operational
The first category consist of the people who are in the decision making
process in lO1F these people are highly qualified few Deputy Managers are to
industries like IRMA Anand dairy for Training
The second category is related to office work and fieldwork These people are also
trained in computer Applications secretarial skills accounting skills etc
The third level people consist of the workers who are actually into the operation
these people are also trained into fields like checking the quality of milk processing
packing etc
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 forthcoming 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
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
41
MARKETING DEPARTMENT It looks after the Marketing of the Products
Flow Chart of Marketing Department
Marketing Manager
Deputy marketing manager Technical Officer
Marketing Superintendent Development Officer
Development Officer Vanshroff
Marketing Assistant
Vanshroff
Marketing Assistant
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
42
MARKETING DEPARTMENT
The marketing department of DMU is considerably extensive which covers an
Area viz North Goa Uttar Kannada district Haveri Gadag Hubli and
Dharwad
Marketing of milk and products is done under brand name ldquoNandinirdquo Except
loose milk other products are marketed by KMF the marketing agency
Due to perishable nature of products the greatest responsibility is over
marketing department to all the products before losing its quality
Before pre-liberalization (July 21st 1991) the DMU enjoyed a monopoly due to
co-operative organization and other benefits received from the state government But
after July 21st 1991 the scenario totally changed new private diaries started grounding
like mushrooms with entrance of private diaries the DMU facing a tough competition
resulting into major loss of market share gradually over the years Today DMU has
only 23 of total market share DMU operates in 17 cities towns having a total
population of 105 million
The closest competitors with regard to market share quality of milk price and
goodwill are
Local vendor
Arogya
Sphurti
Datta
Sri Krishna
Gopal
Local brand milk like Navalur dairy milk
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
43
PRINCIPAL FUNCTIONS OF MARKETING DEPARTMENT AT DMU
1 To prepare the marketing plan at the beginning of every year taking into
consideration the demand sales production capacity and customer
performance
2 To promote milk and milk products through medices
3 To study competitors products and their strategies
CHANNEL OF DITRIBUTION OF DMU
Channel of distribution adopted by the organization plays a very significant
role in improving the market efficiency to promote the product and to meet demand
The DMU has required agents and own sales counter in 4 districts (ie Dharwad
Haveri Uttar Kannada and Gadag)
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
44
Dairy Cycle
MAIN DAIRY
AGENTS OWN SALES PERSONS
CONSUMERS CONSUMER
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
45
MEDIA OF MARKETING
1 News Papers
2 Magazines
3 Radio
4 Wall paint
5 Hoardings
6 Pamphlets
SALES PROMOTION
Sales promotions plans are done to
increase volume of sales within a short time
by providing discount incentives eat This is a promotional tool designed to generate
a demand for a produce
DMU have practiced promotional tools for agentrsquos promotion by providing
provision and facilities to increase sales
PRODUCTS OF DMU
1 Milk
a Nandini Toned Milk
b Nandini Standard Milk
c Nandini Shubam Milk
2 Milk Products
a Curd
b Lassie (Sweet and Masala)
c Paneer
d Peda
e Khova
f Ghee
g Butter
h Mysore pack
3 Milk Powder
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
46
SALES ACCOUNTING
This section of sales department is concerned is concerned with the accounting
work of the sales They keep a daily record of the collection default by the agents
other records related to sales When demanded quantity is delivered in the morning a
bank Chelan is sent to the agents The agents should remit the amount by evening to
any of the nearest bank to the ledger in case of his default the amount is entered into
the ledger against him The daily turnover of milk and milk products are around 5
lacks Out of the remaining 2 bank chellans one is sent to the bank and the other to
the finance department The consolidate records for each product is sent to the
financial department Weekly DMU has certain restriction with regard to pursue an
independent pricing policy marketing strategies to suit the local environment and
conditions
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
47
QUALITY DEPARTMENT It responsibility is to keep a check on the quality of the
Product
Flow Chart of Quality Control Department
Deputy Manager (QC)
Assistant Manager
Chemist Grade 2 amp 3
Dairy Workers
Helpers
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
48
QUALITY CONTROL DEPARTMENT
A qualified QC officer is in charge of this section which works in all the three
shifts The main of this department is to see and check the quality of milk and milk
products produced in the plant The activities of this section in brief are as listed
below
1 Tanker milk- fat snf temperature acidity cob and adulterants
2 Can milk- organoleptic fat amp snf of society samples and cob Of doubtful cases
3 Raw milk silo - stock check at beginning and end of shift temperature fat snf
clr and acidity
4 pasteurized milk silo- fat snf mbrt phosphates temperature and keeping quality
5 Butter-fat curd moisture salt yeast amp mould coli form count
6 ghee- moisture and free fatty acid
7 peda- moisture and total solids
8 Powder- SNF Moisture Burnt Particles etc
9 material testing- chemicals and packing materials
10 Water- hardness ph alkalinity total dissolved solids of raw soft and boiler blow
down water
There are various tests conducted by the officer in charge as well as the
assistants to meet this requirement If any product does not pass through the quality
standard then the product is rejected Even before dispatching Products undergo
testing and it is only after the approval of the quality department that the goods are
dispatched
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
49
Test conducted at DMU
When the milk arrives at DMU at the reception center a panel of well-
qualified persons in a laboratory tests the quality and quantity of milk There are
number of tests carried some of them are as follows
1 Clot on boiling (COB) test
2 Alcohol test
3 Taste
4 Flavor
5 Acidity
6 Corrected lactometer reading (CLR)
7 Gerber method for fat test
8 Milk-tested method
9 Moisture test
10 Solid not fat (SNF) test
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
50
SWOT ANALYSIS
Strengths
1 Nandini enjoys good brand image
2 Large procurement base
3 Huge infrastructure for processing
4 Competitive prices
5 Product dairies range of product
6 Wide distribution network leads to regular and timely supply
7 Milk processed is local milk which reduces the transportation cost
8 It enjoys highest market shares in the packed milk segment
Weaknesses
1 Perishable commodity
2 Lack of professional manpower
3 Bureaucratic method of functions
4 Lacking quality consistency
5 Less buffalo milk
6 Inadequate sales promotional activity Due to bad smell that persists causes
low sales
Opportunities
1 Huge market demand
2 There is scope for developing in new area
3 Availability of buffalo milk-improves market milk quality
4 Predominant of loose milk segment-divide appropriate strategies
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
51
Threats
1 Increase of competitors milk vendors unorganized sector
2 Flexibility in commission structure
3 No entry barriers for private players
4 Low level of consumer awareness
5 Persuade benefits of competing brand
6 Findings
Nandini products have a good brand image
Pricing strategies of Nandini is appreciated by its customers
Proper training programs are going on from few days past
Trade unions are inactive
Nandini is started with customers contact programs in order to get first hand feed
back from its customers and also to its product
SUGGESTIONS
1 More advertisements can be given to the products especially for newly
introduced products in print media which can attract more consumers
2 DMU should hike the commission of its agents or provide clarification for
providing same commission even after hike in price
3 They should provide clear clarification to the consumers that the hike in price
is fair by using tele media
4 Increase the quality of package so that it also clears agentsrsquo complaint and also
reduces damages loss
5 More security is required within the organization
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom
KARNATAKA MILK FEDERATION
JSS SMI UG AND PG STUDIES DHARWAD
52
BIBLIOGRAPHY
Marketing Management
Philip Kotler Person Publications 14th Edition
Financial Management
S CKuchal Arjun Publications 5th Edition
Human Resource Management
GBBaligar Ashok Prakashan 3rd Edition
Marketing Fundamentals
Kevin Lane Keller Pedia Publishers 7th Edition
Annual reports of KMF
WEBITES
wwwKMFNANADINIcom
wwwFMCGCoin
KMF Intranet
wwwMilkindustryorgcom