KMF Project Report on Operations

KARNATAKA MILK FEDERATION
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 Dr.Ajith
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. N.L Guddin for provinding us
the Guidelines and constant support throughout
the project. I would also like to Thank Prof.Vibha
Mogali for her guidance.
I am Thankful to KMF for giving me this
opportunity.I specially Thank Mr.Raghuram.R 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.
JSS SMI UG AND PG STUDIES DHARWAD
INDEX
SL.NO
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
I) EXECUTIVE SUMMARY.
In todays 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 consumers 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.

General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk mostly from cows or goats, but also from buffalo, sheep, horses or
camels 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.

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
vet's 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

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 onsee
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 midwinter 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.

General information About Diaries
A dairy is a business enterprise established for the harvesting of animal
milk mostly from cows or goats, but also from buffalo, sheep, horses or
camels 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.

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
vet's 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

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 onsee
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 midwinter 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.

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 cooperative 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.
10

III) Company profile
Name of the company; Dharwad co-operative. Milk (A unit Of KMF)

Producers societies union LTD
Constitution
Limited
Phone
2467603, 2468268
Fax
(0836) 2468268
E-mail
www.kmfnandini.com
Registered office
Bangalore
Company registration No
1959
& date of establishment
3-3-1986
Board of directors
elected members-8
Area of operation
Dharwad, haveri, gadag, uttarkannad district
Location
lakamanahalli industrial Area, dharwad
Department
Brand name
Nandini
Products
Milk-Toned milk, Standard milk, shubham Milk,
Date of incorporation
Ex-office-5
By govermant-3
Milk-products-Butter, Ghee, Curd, Ladu.
11

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 Rs.7 crore Projects of which Government has Rs.2Crore of share
capital and authorized capital of DMU is Rs.5crore.
DMU formed 551 milk producer's 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.
12

NATURE AND BUSINESS CARRIED:
The Nature of Dharwad Milk Union is that procuring the Milk from societies.
And that milk will be bringing through tankers for various chilling centers those,
which are near and convenient to various societies.
The Union processes the milk and market in urban area through by various
agents. The Union providing service to milk producer's technical inputs like
veterinary services, seeds, fodder etc. and also by giving training to farmer and also
induction program. The Union strengthening of milk cooperative movement,
organization of extension activities and the rural development services.
The Union also owns and operates the dairy plant cattle feed plant; fodder and bull
mother forms, semen collection station, and herd quarter center for animal husbandry
activities.
The Union also takes research, development and also other promotional activities for
the overall benefit of the farmer.
The Union providing various product to market like toned milk, standard milk, full
creamed milk, double toned milk, homogeneous standard milk, along with cheese
curd, ghee, peda also providing. This is the nature and business carried of the
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,
00,000 LPD.
Other facilities like:
Security facilities
Canteen facilities
Shift: Three shift per day.
Manual punching card and computer entries will be there
13

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 Rs.7 crore project of which Government has Rs.2 crore of share
capital and authorized capital of DMU is Rs.5 crore.
DMU formed 55 I-milk producer's 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.
14

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 other's, opinions, ideas & 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 DCS's are carrying out their activities properly and in an efficient
manner.
To see that the milk is brought from DCS's to the chilling centers in the prescribed
time.
To look the accounts of the DCS's supervise the purchase process and market the
milk and milk products.
15

Objectives of DMU:
Providing hygienic and good quality of milk to the consumers.
To build the economic strength of the milk producers in villagers.
To eliminate middlemen's in the business so that the milk producers receive their
appropriate share of bread.
To educate the villagers about the adulteration of milk and its harmful effect on
the body.
To see that every citizen becomes healthy by consuming good quality of milk.
To make villagers self-viable and build self image.

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.
16

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 Gagad

Capacity
Haveri
20000 LPD
20000 LPD
Hirekerur 20000 LPD
Present Value of Activity
Ron
10000 LPD
Sirsi
20000 LPD
Collection of Milk
Sale of Milk
Area of Operation
180000 HPD
80000 HPD
Dharwad, Haveri, Gadag, Uttar Karnataka, Goa Parts of

Maharashtra
Board of Directors
Elected Member
Ex-Officers
17

By Govt.
Total Workers
272 Workers
Location
Lakamanahalli Industrial Area, Dharwad
Department
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 960 Societies

Village Level
18
ORGANIZATION CHART
Presidents
Director
Director
Directors
(Elected-8)
(Ex-officer-5)
(Presidents
Director
Managing director
Ex-officer-5)
Nomi
P&I
Production
Finance
Admin
Directors
Marketing
Security
Nominated-3)
Dy
Dy
Dy
Dy
Sr.
Dy
Manager
Manager
Manager
Manager
Supervisor
Manager
Extension
Q.C
A/cs
Assistant
Officer
Officer
Assistant
Helper
Assistant
Helper
Helper
Workers
19
Jr.Supervis
or
Assistant
Helper

NANDINI PRODUCT DETAILS AND RATE
Sl No.
Product Name
(NMP PRODUCTS)
Maximum
price
1.
Badam Powder 200 gm Tin/Kg
267-86
2.
Mysore Pak 250 gm/Kg
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
20
retail

PRODUCT PROFILES
21
22
23

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
24

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
Deputy Manager
Assistant Manager
Assistant Manager
Extension officer
Clerks
Helpers
25

PROCUREMENT AND INPUT DEPARTMENTS
Procurement and input department is concerned with procurement of milk and

input i.e., technical facilities. Once a milk societies established the P&I
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 Rs.8 for cow milk and Rs. 10.50 for buffalo milk. Some
times price may vary with quality.
Procurement of milk varies from season to during flash season i.e., 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 I.e., 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.
26
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.
27

PRODUCTION
DEPARTMENT: This department Handles the production
process.
Flow Chart of Production Department
Manager dairy
Deputy Manager Production.
Deputy Manager Production.
Technical Officer Powder Plant
Technical Officer Processing
Operators
Technical Officer Butter &

Ghee
Operators
Dairy Workers
Dairy Workers
Helper
Helper
28
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 & I department, it is first weighed with the help of weighing bowl.
Later, it is poured in dump tank. Sample testing is made through lactometer reading
and other tests. The fat and SNF content of each sample of milk is accessed the cow
and buffalo's milk are separately received and sent to the production section
separately through two different stainless steel pipes.
Later, the raw milk is passed through plate chiller of variable capacity where it
is cooled up to 4-5 degrees Celsius. This cooled raw material is further stored in a silo
of 30,000 liters capacity.
PURPOSE OF CHILLING
This is done to avoid the growth of microorganisms, which are responsible for
spoilage of milk and bitter taste. The milk, which is stored in silos, is pumped through
pipeline to the balance tank, which helps to maintain the steady speed flow of milk in
the Pasteurization machine. In, DMU, there are 2 milk Pasteurization machine and 1
Cream Pasteurization machine.
PURPOSE OF PASTEURIZATION
Pasteurization is a process where milk is heated to high temperature and
cooled instantly, to destroy any microorganism. The pasteurized milk will stored in
Pasteurized milk silos and then sent to pre-packing section. Packing is done in 500ml
and 1000ml and stored in cold storage at 7.
29
PASTEURIZATION OF CREAM:
The milk in bulk is taken to the cream separator. Here, the ,cream is separated.
The cream is passed through cream Pasteurization Unit. This cream is sent to Butter
Section. The milk with no fat is skimmed milk. This skim milk 'is pumped back to
Pasteurization Unit and heated to 72 using steam and chilled to 4 using chilled
water and stored silos. This skimmed milk is sent to powder section. The pasteurize
cream is mixed in portion to pasteurized milk.
CURDS:
Raw milk is heated to 90 and allowed to cool to 30. Later culture is added to
it and packed; the curd is formed in the packet itself. It is stored and packed in
200gms and 500gms.
BUTTER:
The cream, which is stored in cream refining tank, is taken to the churning
section where it is churned. Here 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 kgs/hour). Butler is packed in 100, 200 and 500 gms and
also in 10, 25 gms, these are stored in deep freezer room with temperature - 22 and if
the order of salt butter they mix the salt water with cream and other process is same
GHEE:
There are 2 Ghee Boiler of capacity 1500 kgs/batch. A Butter of 2.5 tons is
melted and is brought to Ghee Boiler. Here it is heated to 116-117 degree Celsius for
15 minutes so that the residue is allowed to settle down and Ghee is passed to setting
tank through clarifiers. Later Ghee is allowed for cooling (at 30-40) and packed in
Tin of Liter, 500 ml and 200 ml of pack and kept in the cold storage.
PANEER:
If there is excess of milk, then, Paneer is been made. The milk is heated to 90 0
30

for 15-20 minutes. Glacial acetic acid is added to milk and then milk is strained
through fine muslin cloth. The solid potion is retained and is put in water and then it is
put in chilled water and left overnight. Later it is packed and stored in cold storage.
MILK POWDER:
When there is excess of milk. Milk powder is made. The capacity of the
powder plant is 12 tons. There are two sections Evaporator and Spray Drier through
which milk is converted to Milk Powder. In Evaporator, milk is boiled for 55 at high
vacuum. Milk is concentrated to drier 40-45% of milk is solid, moisture is removed
and the milk power obtained consists of 4% moisture.
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. 10,000 units of electricity.
4. 5 to 6 tones of coal.
5. Generator in case of electricity failure out manpower.
31
PURCHASE DEPARTMENT: Its responsibility is to look after the purchasing

Process.
Flow chart of purchase department
Purchase officer
Purchase
officer
Purchasing superintendent
Asst. purchase officer
Helpers
32

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 i.e., 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. 50,000/- 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.
33

FINANCE DEPARTMENT: It handles all the Finance matters.
Flow Chart of Finance Department
Deputy Manager
Asst. Manager
Asst. Accounts Officer
Asst. Accountants
34

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 suppliers 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.
35

ADMINISTRATION
DEPARTMENT:
It
looks
after
the
general
administration of the company
The department has the following structure
Deputy Manager
Asst. Manager (Board)

Asst. Manager
(Personnel)
Admn Superintendent
Admn. Assistant
Admn Superintendent
Time
Canteen
The Administration Department controls the overall functioning of
Security
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
36
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 Details\Prefers to write out Communications
Is Rational, Logical, Self-Controlled, Fair and Firm.
37

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 & 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, he\she has to be made familiar to the
union and also known the objective, value, functions and the operations. This helps
the employee to interact with senior staff members from various departments.
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
38

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
39

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 supervisor's office
assistants etc. The third category consists of the supervisor's 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 lO.1F 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 doesn't pollute the
environment. The organization has its own Effluent Treatment Plant in its own
Premises.
40

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
Vanshroff
Development Officer
Marketing Assistant
Vanshroff
Marketing Assistant
41

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 Nandini. 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 1.05 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.
42

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. (i.e., Dharwad,
Haveri, Uttar Kannada and Gadag).
43

Dairy Cycle
MAIN DAIRY
AGENTS
OWN SALES PERSONS
CONSUMERS
CONSUMER
44

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 agents 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
45

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.
46

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 & 3
Dairy Workers
Helpers
47

QUALITY CONTROL DEPARTMENT:
A qualified Q.C 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 & 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 & 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.
48

Test conducted at DMU:
When the milk arrives at DMU, at the reception center a panel of wellqualified 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.
49

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.
50

Threats
1. Increase of competitor's 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 agents complaint and also
reduces damages / loss.
5. More security is required within the organization.
51

BIBLIOGRAPHY
Marketing Management
Philip Kotler, Person Publications. 14th Edition
Financial Management
S C.Kuchal, Arjun Publications. 5th Edition
Human Resource Management
G.B.Baligar, Ashok Prakashan. 3rd Edition
Marketing Fundamentals
Kevin Lane Keller. Pedia Publishers. 7th Edition
Annual reports of KMF
WEBITES
www.KMFNANADINI.com
www.FMCG.Co.in
KMF Intranet
www.Milkindustry.org.com
52

KMF Project Report on Operations

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

KMF Project Report on Operations

Uploaded by

Copyright:

Available Formats

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

Vision and mission

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

Name of the company; Dharwad co-operative. Milk (A unit Of KMF)

& date of establishment

Dharwad, haveri, gadag, uttarkannad district

lakamanahalli industrial Area, dharwad

Milk-Toned milk, Standard milk, shubham Milk,

Milk-products-Butter, Ghee, Curd, Ladu.

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

To educate the villagers about milk and its quality.

To make 'Nandini' as a part of daily life.

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

Providing hygienic and good quality of milk to the consumers.

To build the economic strength of the milk producers in villagers.

To make villagers self-viable and build self image.

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

A co-operative society registered under the Co-operative

Procuring and Marketing of Milk Production and Sale of

2 Lakhs Liters / day

Milk Chilling Centers and Gagad

Hirekerur 20000 LPD

Present Value of Activity

Dharwad, Haveri, Gadag, Uttar Karnataka, Goa Parts of

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

Lakamanahalli Industrial Area, Dharwad

Co-operative Societies at 960 Societies

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

JSS SMI UG AND PG STUDIES DHARWAD

KARNATAKA MILK FEDERATION

Badam Powder 200 gm Tin/Kg

Mysore Pak 250 gm/Kg