Dharwad Milk Union Ltd. KMF project

Dharwad Milk Union Ltd. KMF

PESITM –SHIVAMOGGA MBA -program Page 1


CONTENTS

Si/No TITLE Page No

01) INDUSTRY PROFILE

1.1 General introduction

1.2 Industrial back ground of the study

1.3 Growth and development

02) COMPANY PROFILE

2.1 Background and inception to the company

2.2 Nature of business carried

2.3 Vision Mission and Objectives

2.4 Product and Services Profile

2.5 Area of operation



2.6 Ownership pattern

2.7 Competitor’s information

2.8 Achievements and awards

03) Organization Structure

04) Bibliography



1) INDUSTRIAL PROFILE

1.1 General Introduction

Karnataka Co-Operative Milk Federation

– A harbinger of rural prosperity

Karnataka Milk Federation (KMF) is the largest Cooperative Dairy Federation in South India, owned and managed by milk producers

of Karnataka State. KMF has over 2.19 million milk producers in over 11870 Dairy Cooperative Societies at village level, functioning

under 13

District Cooperative Milk Unions in Karnataka State. The mission of the Federation is to usher rural prosperity through dairy

development. During the last four decades of Cooperative Dairy Development by KMF, the dairy industry in Karnataka has

progressed from a situation of milk-scarcity to that of milk-surplus.



1.2) Industrial back ground of the study

DAIRY INDUSTRY IN INDIA

Dairy enterprise is an important occupation of farmer. In India nearly 70% of the people depend on agriculture. It is the

backbone of India. Dairy is linked with agriculture industry to a large extent. Animal husbandry in India is an essential part of

agriculture. It is mainly a rural occupation closely associated with agriculture.

1.3) GROWTH AND DEVELOMENT OF DAIRY INDUSTRY IN INDIA

During the Pre-independence year there was no serious stress given to dairy industry. In 1886 the Department of

Defense of the British Government established the dairy farms for the supply of milk to the British troops in Allahabad. Later, in 1920

serious steps were taken by Mr. William Smith, an expert in dairy forming to improve the milk production There was discrimination

done to the Indians hence this led to the rise of the first milk union in India. In Luck now in 1937 called the Luck now milk producer’s

Co-operative union Ltd. In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the economic stability of

villagers. The dairy and Animal Husbandry received serious attention after the independence. There were lots many of progressive

steps taken by the government through five year plans. This led to the formation of National Dairy Development Board in 1965 & thus

in 1970 he decided to bring a “White Revolution” throughout the country, Initially 10 states were Selected were for this purpose

excluding Karnataka. In Karnataka in 1974 an integrated project was launched to restructure and reorganize the dairy industry on Co-

operative principle of AMUL and to lay foundation for new direction in dairy industry,



Co-ordination of activities between the unions

Developing the markets for the increasing in milk production.

To make the brand „‟Nandini‟‟ as a house hold name.

Excellence in quality is to be maintained to lay a solid foundation for wide

Pread acceptance of ‟Nandini” products.

To increase the market share of ‟Nandini‟.

2) COMPANY PROFILE

2.1) Background and inception of the company

Dharwad Milk Union

Dharwad Milk Union Limited (DHAMUL) is functional in the milk rich district of Belgaum in Karnataka. Its milk shed area

includes the whole district of Belgaum. The government of Karnataka established the Belgaum Dairy in1966 with a capacity of 10

LTPD (Liter Ton Per Day) and procurement of 3000 kgs per day. In 1985 it was taken over by the Dharwad Milk Union (DHAMUL).



On its joining the KMF in 1985, it became as part of the area in which the operation flood 3 was implemented. Under this anew dairy

with a capacity of 60 LTPD was established at a cost of Rs.5.82 crores. A chilling center with a capacity of 20 LTPD and form cooler

with a capacity of 60 LTPD was also established as a part of this scheme.


Today the union is procuring milk from over 435 DCSs (District Co-Operative Societies) of which 319 are functional. Their

Functional DCSs of which 319 are functional. Their functional DCSs has shown steady increase over the past few years with the

member starting at 71787in November 1997. The effort of the union on the procurement side has lead to its procuring in an average of

461846 of its milk every day.

Bankers - Belgaum Dist Co- operative Bank, State Bank of Mysore Belgaum,

MalprabhaGramhinaBank,

Auditor – Sri M. R. Joshi & co.

Dharwad Asst. Auditor –

Sri S. B. Devarmuni Asst. Director

Sri K. V. Joshi Senior Auditor,



2.2) Nature of the business carried

One of the core functions is procurement of milk, processing it and marketing milk and milk products. DHAMUL markets its

products under the brand name Nandini.

2.3) Vision, Mission, and Quality policy,

Vision

To march forward with a missionary zeal which will make KMF a trailblazer of exemplary performance and achievements

beckoning other Milk Federations in the country in pursuit of total emulation of its good deeds?

To ensure prosperity of the rural Milk producers who are ultimate owners of the Federation.

To promote producer oriented viable cooperative society to impart an impetus to the rural income, dairy productivity and rural

employment.

To a bridge the gap between price of milk procurement and sale price.

To develop business acumen in marketing and trading disciplines so as to serve consumers with quality milk, give a fillip to

the income of milk producers.

To compete with MNCs and Private Dairies with better quality of milk and milk products and in the process sustain

invincibility of cooperatives.



MISSION

Heralding economic, social and cultural prosperity in the lives of our milk producer members by promoting vibrant, self-

sustaining and holistic cooperative dairy development in Karnataka State

QUALITY POLICY

To ensure pure, hygienic milk and milk products through continuous improvement of quality standards.

VALUES:

Cleanliness

Total quality maintenance

Discipline

Co-operation

Transparency



Quality and Food Safety

During the last ten years, the Federation is giving greater emphasis on procuring quality milk from DCSs under the concept of

“Quality Excellence from Cow to Consumer.” Many Clean Milk Production (CMP) initiatives have been implemented at all the stages

of procurement, processing and marketing. Among these CMP initiatives, noteworthy initiative is the setting up of Community

Milking Parlours in villages.

The KMF is forerunner to introduce this innovative technological initiative for bringing about revolutionary improvement in quality of

milk collected in DCSs. This system has several advantages such as elimination of mastitis in milch animals and improvement of

productivity. The milk from milking machines, collected through Automatic Computerized Milk Collection Units is chilled directly in

Bulk Milk Coolers. This chilled raw milk, untouched and unadulterated by human hands, has very high microbiological quality,

comparable to international standards. This high quality milk is being utilized for manufacturing high quality value added milk

products, for both domestic as well as international markets.



Other Clean Milk Production (CMP) Initiatives include: -

Training of milk producers on modern dairy husbandry practices and CMP.

Providing SS utensils, antiseptic solutions for udder cleaning on pre and post milking, etc. to producers.

Training to DCS staff and officers of the Unions on CMP.

Replacing Aluminums milk cans and collection vessels with SS –304.

Posters, documentary films and booklets on Clean Milk Production.

2.4) Product / Services profile

Types of Milk & Milk products marketing by KMF

Milk Products

1. Nandini Toned milk:

Nandini Toned Fresh and Pure milk containing 3.0% fat and 8.5% SNF.

Available in 500ml and 1litre packs.

2. Nandini Homogenized toned milk:



Nandini Homogenized Milk is pure milk which is homogenized and pasteurized. Consistent right through, it gives you more cups of tea or coffee and is

easily digestible.

3. Full cream milk:

Full cream milk is Containing 6% Fat and 9 % SNF. A rich creamier and tastier milk, Ideal for preparing home-made

sweets & savories

.

4. Good life:

Cow's pure milk, UHT processed bacteria free in a tamper-proof tetra-fino pack which keeps this milk fresh for 60

days without refrigeration until opened. Available in 500ml fino and in 200ml Bricks pack.

5. Nandini Ghee:

A taste of purity is Nandini Ghee made from pure butter. It is fresh and pure with a delicious flavor. Hygienically

manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient

temperatures. Available in 200ml, 500ml, 1000ml sachets, 5lts tins and 15.0 kg tins

6. Nandini Curd:



Nandini Curd made from pure milk. It's thick and delicious. Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet.

7. Nandini Peda:

No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family. Store at

room temperature approximately 7 days. Available in 250gms pack containing 10 pieces each.

8. Butter:

Rich, smooth and delicious. Nandini Butter is made out of fresh pasteurized cream. Rich taste, smooth texture and

the rich purity of cow's milk makes any preparation a delicious treat. Available in 100gms (salted), 200gms and 500gms

cartons both salted and unsalted

Services Profile



Planning dairy and rural development projects.

Organization of farmer co-operative societies

Setting up of dairy and cattle feed plants

Manpower planning and training.

Applied research and development

Implementation of milk production enchantment programme

2.5) Area of operation.

- Regional

2.6) Ownership pattern.DHAMUL builds and runs under the co-operative institutions such as

o District Co-operative Society. (DCS)

o National Dairy Development Board. (NDDB)



2.7) Competitors information

The Belgaumers taste new brands of milk every year Right now/ till date there are 16 competitors in the mkt apart from

Nandini. The 5major brands which are very competitive for Nadini are Mayur, Mahalaxmi, Arokya, Sahyadri and Aditya.

Arokya Dairy:

It procures most of the milk from south side of the Belgaum. It procures 10,000 litres of milk every day. It is located near

Desur a village of Belgaum district 10 kms away from city on NH4 A-they supply most of the procured milk to the city.

Mayur Dairy:

It procures milk mainly from Talukas at Belgaum district namely Chikkodi, Raibag & Athani they procure 25,000 litres per

day. It is located in Kolhapur & the supply milk to Belgaum as well as Kolhapurdistrict. The standard milk of Mayur dairy contents a

fat of 6.5% & 9%with this fat & S.N.F they supply nearly 10,000 LTPD.

Sahyadri milk:



The dairy is located in Shinnolli Taluka, Chandgad &district Kolhapur. This is 15 kms away from Belgaum city. It procures

dairy about 30,000 LTPD which will be supplied in the Belgaum city as well as in the Maharashtra state.

Mahalaxmi Dairy:

The Mahalaxmi dairy plant is located near Kolhapur, Maharashtra state which procures round about 15,000 to 20,000 LTPD

&its target mkt area in Belgaum district, Gokak & in Maharashtra state. Besides above main brands to other competitive brands like,

Krishna, Gopal, Aditya, Arokya etc.

2.8) Achievements or awards

ACHIEVEMENTS

State entirely covered by Dairy Development.

Elected board in position in all District Milk Unions and Federation.

Low price spread between procurement and sale prices resulted in payment of higher price to the milk producers.

95% of the Milk Producers Cooperative Societies are earning profit.



Total membership of 21.22 lakh covers around 3.79 lakh (18%) Landless Laborers .Out of this total, 7.08 lakh (33%) of them

are women members and 3.22 lakh (15%) belong to SC/ST groups.

Farmers have earned over Rs.13224 Crores over last 10 years.

At present an average payment of Rs. 759 Lakh / day is paid to milk producers.

Establishment of 6 lakh litres/day state of art fully automated Mega Dairy in Bangalore expandable to 10 lakh litres/day.

Strengthening/Expansion of Mother Dairy, Bangalore adopting modern technology from 4 LLPD to 7 LLPD of milk handling

facilities at an outlay of Rs.35 Crores.

An Ice Cream Plant at the cost of 3 crores with capacity of 3000 LPD was established in 1997 & later expanded to 10000

LPD Capacity (Rs.369 Lakh) in 2005.

To facilitate conversion of surplus milk into milk powder, a milk powder plant at Mother Dairy at a cost of Rs.22 Crores has

been established during October 2002

To facilitate the manufacture of Export-Oriented Milk Product, a new State-of-art Product Plant is Commissioned at

Channarayapatna in Hassan district at a cost of Rs. 72 crore to handle surplus milk of Mysore, Tumkur, Hassan and Mandya

Milk Unions.

Chilling Centre of 1 LLPD expandable to 1.5 LLPD at 450 Lakh has also been commissioned at Channarayapatna.

The diversification in the year 2000 into UHT (Ultra High Temperatures) treatment process has seen the launch of “Good

Life” pure cow milk with a shelf life of 60 days without refrigeration in different variants (Good life, Slim, Smart &

Sampoorna). Infrastructure facility has been expanded to 1.8 LLPD from 40 LPD at Kolar Milk Union

Coverage of 2.10 Lakh farmer members under Social Security Scheme.

Exapansion of Gubbi & Dharwad Cattle Feed Plants capacity from 100 MTD to 150 MTD

The four Cattle Feed Plants owned by KMF have been awarded with the ISO 9001:2000 certificate for best-maintained quality

standards. Due to increased demand, the combined capacity utilization of the Plants has far exceeded 140%.



Nandini Sperm Station has been awarded with ISO certificate & has been merited by Ministry of Agriculture, GOI as 2nd best

a grade semen station in the country during 2005-06.

KMF has exported SKIM Milk Powder to Nepal, Bangladesh, Oman, Madagaskar, Burma, Singapore, Thailand & Phillipines

from November 2000 & during 2001-2011 about 10362 MTs has been exported.

Mother Dairy, Bangalore has obtained clearance from Export Inspection Agency, Ministry of Commerce, Govt. of India for

export of Skim Milk.

Kolar, Mysore, Dakshina Kannada & Tumkur Unions have obtained ISO 9001-2000, HACCP & GMP certificates

B'lore Milk Union has obtained ISO 22000:2005, which is the first Dairy in south India to get this Certification. Mother Dairy

has also obtained this certificate recently.

About 12684 MTs of Nandini Ghee has been supplied during 2001-2011 to Thirumala Thirupathi Devasthanam.

Implemented ‘Total Energy Management' by the Unions of KMF in collaboration with NDDB and IRMA, Saving more than 7

Crores.

Dividend and bonus of Rs.11.52 crores for the period 2001-2009 has been distributed by KMF out of profits made to share

holders and unions.

Area-specific Mineral Mixture production started in Gubbi Cattle Feed Plant with the technical guidance of NIANP Bangalore.

Karnataka Milk Federation is successfully implementing Central Government Schemes, such as Clean Milk Production

Programme, Special Package for Suicide Prone Districts, Fodder Development etc., and State Government Schemes such as

‘Amruta Yojana'.

Other Schemes being implemented are Grants/relief, Grants for Gulbarga/Bidar Union, Establishment of Chilling Centers at

Gulbarga and Belgaum Division.

Opening of ‘Nandini Dairy Farmers Welfare Trust’ Hostel for farmers children at the cost of Rs.12.96 Crores for higher

education of 600 Boys and 400 Girls.



Modernization of mineral mixture plant to produce high quality mineral mixture in association with research & development

wing of NDDB at Gubbi Cattle Feed Plant,

Remunerative Milk Price to Producers-

Since September2008, the GOK is magnanimously providing Rs. 2 per liter of milk, as incentive, to producers giving milk to

dairy cooperatives in the State which is in addition to an average raise of Rs. 2.50 per kg in purchase price revision by KMF. This

ground-breaking support program, implemented nowhere else in the country, is acting as a remarkable growth stimulus for the

cooperative dairy sector in the State.

To increase the milk productivity in cattle by Increasing the AI coverage and reach, Biosecurity measures to ensure quality

genetic materials and establishing disease free zones for the elimination of diseases such as Foot & Mouth, Brucellosis, etc.

Supply of 2,92,442 MTs of balanced Cattle feed during 2009-10, which is 4% higher than the 2,80,942 MTs sold during 2008-

09 cattle feed at reasonable price are very essential for boosting milk production in the State

During the Pre-independence year there was no serious stress given to dairy industry. In 1886 the Department of Defense of

the British Government established the dairy farms for the supply of milk to the British troops in Allahabad. Later, in 1920

serious steps were taken by Mr. William Smith, an expert in dairy forming to improve the milk production There was

discrimination done to the Indians hence this led to the rise of the first milk union in India. In Luck now in 1937 called the

Luck now milk producer’s Co-operative union Ltd. In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring

up the economic stability of villagers. The dairy and Animal Husbandry received serious attention after the independence.

There were lots many of progressive steps taken by the government through five year plans. This led to the formation of

National



Dairy Development Board in 1965 & thus in 1970 he decided to bring a “White Revolution” throughout the country, Initially

10 states were Selected were for this purpose excluding Karnataka

Awards

No award

3) Organization Structure



The organization is three tiered on Co-operative principles.

A. Dairy Co-operative Societies at grass root level.

B. District Co-operative Milk Unions at single / multi district level.

C. Milk Federation at State level.

All above three are governed by democratically elected board from among the milk producers. Under the direction of elected boards,

KMF, various functional Units & Unions are performing the assigned tasks to ensure fulfillment of organization objectives.



BOARD OF DIRECTORS

1. Shri B N Arabgond. Chairman

2. Dr M N Venkatramu. Managing Director

3. Shri N S Asuti. Director

4. Shri G M Morbad. Director



5. Shri A M Desai. Director

6. Shri S M Hadagali. Director

7. Shri R N Davagi. Director

8. Shri U M Hegade. Director

9. Shri G G Hegade. Director

10. Govt Dept Officers. 5 Members

11. Govt Nominated. 3 Members

About an Organization structure

Organization structure is the skeleton of the organization. It prescribes the formal relationship among various position and the activities. Arrangements

about reporting, relationship, how an organization member is to communicate with other members, what roles and procedures exist to guide the various activities

performed by the members of all parts of the organization structure.

Organization structure plays a vital role in achieving the organizational goals. Organization structure should be properly designed to facilitate the smooth

functioning of the organization.



Organization structure of Dharwad milk union consists of BOD’s at the top. Then president, under whom is the Managing Director. He is the person who

is responsible for smooth functioning of the organization. After Managing Director there are managers and Deputy Mangers of various departments who are

responsible and accountable for the activities of their respective departments. There are subordinates, supervisors and employees who are directly linked with

department managers.

THE STRUCTURE OF P&I DEPARTMENT:


Manager (P & I)

Procurement wing Technical Input Wing

Deputy Manager Deputy Manager

Assistant Manager Assistant Manager


Procurement and input department is play a vital role in the DMU. In any any milk union this department handles the procurement of the milk required amt

to the production process.

04) BIBLIOGRAPHY

01) Books:

Subba Rao P: Essentials of HRM Industrial Relations (Himalaya Publication) Vol-2 Edition. Geetanjali press Pvt. Ltd. Bangalore.

K.Ashwathappa: Production and Operation Management (Himalaya publication) Bangalore.

Philip Kotler: Marketing Department Vol-3.

02) Reports:


Extension Officer Clerks

Clerks Helpers


Annual Reports of Dharwad milk union (2009) from HR Department and Finance Department.

03) Websites:

Site visited for products of company

http://www.nandini.co-op.com

Site visited regarding service provided by the company

http://www.kmf.com

Site visited regarding the information about the company

http://www.dmu.com


http://www.dmu.com/

Business

Dharwad Milk Union Ltd. KMF project