HISTORY

Today India is the world’s largest milk producer which overtook US in 1998 which

accounts for 17% of the global output. According to the research firm CLSA, milk is the

country’s biggest agricultural produce, contributing 22% to agricultural GDP. The annual

growth rate of milk production in India is 5% to 6%, against the world at 2%. This rapid

growth was largely credited to the contribution by dairy co-operatives, under the

Operation Flood (OF) Project, assisted by many multi- lateral agencies, including the

European Union, the World Bank, FAO and WFP (World Food Program).

National Dairy Development Board (NDDB) lays down the rules and regulations to be

followed by the various co-operative milk societies. AMUL (Anand Milk Union Limited)

was a pioneer in starting a co-operative milk producer’s society in 1946 in Gujarat and

thereafter many co-operative societies were started. In 1975 the World Bank gave a credit

of Rs.78 crores for starting another co-operative society. An overwhelming 85% of the

over Rs 2,00,000 crore dairy sector, which sustains about 80 million families across rural

India, falls under the unorganized sector. The rest includes private dairies, co-operative

societies and government dairies.

VISION

"Wish to grow into model milk co-operative in the country"

Quality Policy

“We continuously strive to improve our quality and operating system by educating and

motivating producers and work force to achieve customer satisfaction – both producers

and consumers”.

Quality Rule

“Every job / operation will be done by everyone in the right time and right at first time for

customer satisfaction”.

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MILESTONE OF THE COMPANY

1987 – Bifurcation of the district from an operational area of Bangalore Milk Union

Ltd to form a separate milk union.

1987 – Establishment of First Women Dairy Co-operative Society in the union.

1989 – Inauguration of Sadali chilling centre.

1990 – Initiation of milk marketing at inter-dairy rate.

1991 – Inauguration of Gowribidnur chilling centre.

1991 – KMF handed over chilling centres of Kolar, Chintamani and Gowribidnur to

Kolar Milk Union Ltd.

1994 – Inauguration of full-fledged dairy at Kolar with a processing capacity of 1.0

lakh litre per day.

1994 – Union started milk marketing under the brand name “NANDINI” in Polythene

packets.

1995 – Inauguration of Administrative building in the dairy campus.

1998 – Inauguration of Cheese plant.

1999 – Union started marketing Nandini Good life Milk.

2000 – Expansion of marketing goods to Chennai.

2001 – Inauguration of BMC centres in the jurisdiction of KCMUL (first time in the

history of Karnataka)

2001 – Kolar Dairy was certified ISO-9002 for Quality Management System.

2001 – Union started marketing Masti Dahi.

2001 – Expansion of Tetrapak unit.

2003 – Union bagged National Productivity Council Award – 2nd Place in both 2003

and 2004.

2005 – Inauguration of 100th BMC centre in the jurisdiction of KCMUL.

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2006 – Union Bagged best Co-operative union award in the state.

2007 – Establishment of producers Welfare Trust.

2008 – The union was renamed as “Kolar-Chikkaballapura Co-operative Milk

Producers Societies Union Limited”.

2008 – Union started to export Good life milk to Singapore with a shelf life of 1 year

and also started to supply to INDIAN ARMY. The union also received Energy

Conservation Award from both central and state government.

2009 – Introduced Good life milk in 200ml fino packets to market and also launched

new variant milk called “SAMPOORNA”.

2010 – Increased the packing capacity of UHT plant to 2.5 lakh litres per day.

2011 – Union recorded highest milk procurement of 8,00,000 litres.

2012 – Union registered the highest milk sales of 2,50,000 litres and milk procurement

of 8,50,000 litres.

List of Co-operative Milk Producers under Karnataka Milk Federation

1. Kolar-Chikkaballapura Milk Union

2. Bangalore Milk Union

3. Mandya Milk Union

4. Mysore Milk Union

5. Hassan Milk Union

6. Belgaum Milk Union

7. Shimoga Milk Union

8. Tumkur Milk Union

9. Gulbarga Milk Union

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10. Dharwad Milk Union

11. Dakshina Kannada Milk Union

12. Bijapur Milk Union

13. Bellary Milk Union

Bangalore Dairy, a joint venture of UNICEF, Government of India and Government of

Karnataka was dedicated to the people of Karnataka on 23rd January 1965 by the then

Honourable Prime Minister Late Shri Lal Bahadur Shastriji. Sprawling over an area of

52 acres, the Dairy had an initial capacity to process 50,000 litres of Milk per day. This

dairy was handed over to the ‘Karnataka Dairy Development Corporation (KDDC)’ in

December 1975 as a part of Rural Milk Scheme of Mysore, Hassan and Kudige under

‘Operation Flood-II’ and then transferred to ‘Karnataka Milk Federation (KMF)’ in May

1984 as a successor of SDDC.

EVOLUTION OF KARNATAKA MILK FEDERATION

Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13 Milk

Unions in the state and thus forming the state level apex organization. As a Co-Operative

apex body of the state of Karnataka, it represents dairy farmer’s organization and also

implements dairy development activities. The main objectives of KMF is

To build village level institutions in co-operative sectors to manage the dairy

activities.

To ensure provision of milk production inputs, processing facilities.

Provides assurance and remunerative market for the milk produced by the farmer

members.

To facilitate rural development by providing opportunities for self-employment at

village level, preventing migration to urban areas, introducing cash economy and

opportunity for steady income.

Provide quality milk to consumers.

Company at a glance

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Kolar-Chikkaballapura District Co-operative Milk Producers Union is registered under Co-

operative Societies act after bifurcation from Bangalore District Co-operative Milk Producers

Union on 23/03/1987. Dairy development activity in the district was initiated during the year 1975

under IDA assistance as a part of Kolar Milk Union Limited (KOMUL). Subsequently the district

was bifurcated from the operational area of KCMUL to form a separate Milk union which effected

from 01-04-1987. The area of operation is restricted to Kolar and Chikkaballapura Districts having

2919 villages of 11 revenue Taluks. KCMUL is certified for ISO 9001-2000 for quality

management and Food Safety Systems..

The Kolar union has a Milk processing plant at Kolar with a handling capacity of 2,50,000

liters per day and three chilling centers at Chintamani, Gowribidnur and Sadali With

handling capacity of 1,00,000 liters per day respectively. At Kolar, the dairy is

manufacturing Butter, Ghee, Peda, Curd, Cheese, Masala Butter Milk, AMUL masti. UHT

Milk in addition with pasteurized toned Milk and full cream Milk. UHT Milk is being

sold under the brand name “Nandini”, “Good Life”, and “Nandini Smart” while all other

products are sold under the brand name of “Nandini”. The union started marketing of

liquid Milk in polythene sachets in entire Kolar district and in a part of Bangalore city

since 1994.

DAIRY CO-OPERATION SOCIETIES [DCS]

Dairy Co-operative society is a basic organization unit functioning at the village level that

is organized on the co-operative principles. All milk cattle owners are eligible to become

members of the dairy co-operative societies. The DCS functions daily and also acts as

marketing outlet for the milk procured in the village. KCMUL comprises of 11 Taluks

with a total of 5309 revenue villages and 1732 Dairy co-operative societies out of which

79 are Women Dairy Co-operative Societies. There are more than 3 lakh members

registered in the society in which only 84,639 members are supplying milk to the society

from both Kolar and Chikkaballapura district and the rest are sleeping members. These

members are divided into various categories like

Particulars Members

Small Farmers 30,207

Marginal Farmers 31,349

Agricultural Laborers 15,307

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Others 7,776

TOTAL 84,639

In this, Schedule Caste Members 13,415

Schedule Tribe Members 7,968

MILK FEDERATION

The Karnataka Co-operative Milk producers Federation Ltd. came into existence on 01-

05-1984, by federating the milk unions in the state and thus forming the state level apex

organization. The federation is implementing the project activities and the surplus milk

products are converted to produce and supply centralized inputs. The main responsibility

of KMF is to co-ordinate the activities between the unions and also to develop the market

by increasing the milk production. The federation will manage the surplus and deficiency

of Liquid milk among the member milk unions. However, the federation organizes

marketing of produced products. The major quantity of the procured milk is sold as liquid

milk and the rest will be used for the production of other goods like Butter, Ghee, Peda,

Flavoured milk, Burfi, Paneer, Cheese, Khoa, Jamoon Mix, Jamoons, Mysorepak, Badam

powder, UHT milk and Ice-creams. The federation organizes marketing of liquid milk and

products outside the state. Excellence in quality is maintained to lay a solid foundation for

widespread acceptance of “Nandini Milk Products”.

Clean Milk Production Programme

Under Clean Milk Production Program Union has commissioned 138 Bulk Milk Coolers

at identified primary MPCS through which they are procuring 3 Lakh Kgs of Milk Every

Day. Apart from this at present they have 60 functioning Milking Machines and 506

Automatic Milk Collections Units to procure good quality milk

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Women empowerment programme - STEP

The program of STEP advocates the objective of providing training for up grading the

skills and to provide sustainable employment for women, through a variety of action-

oriented projects, which employ women in large number. The scheme covers 8 traditional

sectors of employment. Dairying and Animal Husbandry is one such sector, which gives

sustainable employment and income. At the end of February 2012 Kolar Union had 79

exclusive Women Dairy Co-operative Societies.

THE OVERVIEW OF THE COMPANY

Particulars Total

PROCUREMENTS AND INPUTS

Inhabited villages 2,919

Milk Producer Members 84,639

Milk procurement Routes 121

Artificial insemination Centres 322

PROCESSING PLANT CAPACITY

Kolar dairy 3,00,000 litres/day

Gowribidnur Chilling Centre 1,20,000 litres/day

Sadali 1,20,000 litres/day

Chintamani 1,60,000 litres/day

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MARKETING AND SALES

Agents 486

Parlours 23

No. of District Routes 11

Everyday Milk Sales 2,50,000 litres/day

Credit Institutions 25

FINANCE as on March 2012

Share Capital 28.09 crores

Annual Turnover 664 crores

Profit 1.95 crores

Average Procurement 8,50,000 litres/day

ORGANIZATION CHART

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PROCUREMENT & INPUTS DEPARTMENT

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Managing director

EO-II /AA-I / Senior Steno

General Manager

Manager

Deputy Manager Systems

Deputy Manager

Extension Manager (EO-I) / Senior Superintend

AA-II / Sr. Typist / Steno

AA-III / Mobile Veterinary assistant

Peons / Helpers

MILK PROCUREMENT

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The operational efficiency is reflected on the prices paid to the member producers.

KOMUL is offering the best remunerative to milk producers. At present they pay Rs.

21.11 / KG for MPCS and Rs. 20.40 / kg for the producers. The present average milk

procurement is 8.5 lakh liters per day and they are used as below.

PARTICULARS LITERS

Milk sachets 2,50,000

Curd 25,000

UHT (Good Life) 2,50,000

Mother dairy 1,80,000

Remaining is used for Butter, Ghee and stock and Surplus is

converted to powder1,45,000

TOTAL 8,50,000

The company has achieved a tremendous progress in collecting the milk from the

producers. The company is paying the amount in cash to producers in a weekly basis; on

an average the company pays 10-12 crores to producers. Milk collected at DCS will be

transported to chilling centres through 121 milk procurement Routes, by traveling 12.650

KM`s every day. A minimum of 250-300 litres of milk should be given by every DCS. It

is a rule that no two DCS`s should be located within 3 km radius of any place. At every

DCS centre one secretary and one tester will be appointed. The secretary collects the milk

from the farmers and the tester checks whether the FAT and SNF contents in the milk are

up to the required standards.

KCMUL implemented many scheme like “Clean Milk Production” with the motto of

“Pure & Fresh Milk Cow to the consumers”. Under this program, installation of Bulk Milk

Coolers, Automatic Milk Collection Units, Electronic Weighing Scales etc., will be

installed at every DCS level to minimize human effort in the process of milk collection.

Then the milk is transported from the societies to the chilling centres within 4-5 hours then

the cooling will be done at 4o Celsius, then the chilled milk is transferred to Mega dairy

from the chilling centres within another 4-5 hours. Then the processed milk is tested in the

laboratory again and then will be packed accordingly and then it will be stored in the

storage room and finally it will be distributed to the dealers/agents.

PRODUCTION DEPARTMENT

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Managing director

Dairy operator-I

General Manager

Manager (PRD)

Assistant Manager

Deputy Manager

Technical officer/Dairy Technologist

Dairy operator-II

Dairy operator-III

Dairy operator-IV

Peons/Helpers

.

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Production department is the most important and the largest department in the

organization. The production department in the Kolar dairy performs the function at its

best by transferring the raw materials like milk and machine in to specified outputs like

Curd, Butter, Ghee, Masala Butter Milk, Peda, Cheese, Masti Dahi, Good Life and milk

sachets in assigned best quality in order to achieve the organization goals successfully.

The Production manager heads the production department and organises well by having a

specific plan for each day and executes and controls all the production activities with the

help of assistants and dairy operators. It is totally a computerized system of production

where the human resource required is very less.

The main work of the production department is

To maintain the quality of the milk at all levels.

To execute, co-ordinate, organize and monitor the production activities.

To increase the output as per the demand.

To Decrease the cost of production and wastage in the production process as much as

possible.

Finally to ensure that the production meets the planned requirements.

The production will be done all 24 hours a day and 365 days in a year. The production

works through 3 shifts and 2 general shifts.

Shifts Timings

1st 06 AM – 02 PM

2nd 02 PM – 10 PM

3rd 10 PM – 06 AM

MORNING (GENERAL) 09 AM – 05 PM

EVENING (GENERAL) 10 PM – 06 AM

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PRODUCTS PRODUCED AT KOLAR

Each product will be produced with different quantities.

Particulars Production/ day No. of machines used

Milk 2,50,000 litres 25

UHT (Good Life) 2,50,000 litres 5

Curd 25,000 litres 2

Masala Butter milk 2000 litres 2

Cheese 2000 kgs 1

Ghee 6000 litres 4

Peda 40 kgs 1

PRODUCT PROFILE

TONED MILK

Fresh and pure Milk available in 250ml, 500mll and 1 litre packs. Better to be used

within a day from the date of packets. It contains 3% fat and 8.5% SNF.

HOMOGENIZED TONED MILK

This Milk is consistent right through; it gives you more cups of tea or coffee and is

easily digestible. This is available in 500ml, 1 litre and 5 litre packets.

CURDS

Nandini curds are made out of pure Milk. It is thick and delicious, giving all the

goodness of homemade curds. It is available in 200gms and 500gms packets.

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BUTTER

Rich smooth and delicious, ‘Nandini’ butter is made out of fresh pasteurized Milk

cream. Any preparations made from this will be a delicious treat. It is available in

100gms (salted), 200gms and 500gms cartons both salted and unsalted.

GHEE

Nandini ghee is made from pure butter. It is fresh and pure with a delicious flavour.

Hygienically manufactured and packed in a special pack to retain the goodness of pure

ghee and to have a Shelf life of 6 months at ambient temperature. This is available in

200ml, 500ml, 1-liter sachets, 5-liter tins and 15kg tins.

Kolar dairy sells 380 tonnes of ghee to TIRUMALA every year.

FULL CREAM MILK

The full cream pure milk which containing 6% fat and 8% SNF is rich, creamer and

tastier milk. It is ideal for preparing home-made sweets and savouries. It is available in

500 ml, and 1 litre packets.

MASALA BUTTERMILK

Masala buttermilk is manufactured and sold in the summer season, especially from the

month of March to July, the only period during which it gets demand. On an average

the sales exceeds to more than 1000 Litres per day in 250 ml sachets.

CHEESE

Cheese plant was started in the union in 1997 at cost of Rs.3.5 Crores. At present

cheddar cheese in produced from cow milk and refined at controlled relative humidity

and temperature for one month of two years. Cheese refined to various length of time

will be blended and processed to obtain processed cheese.

PEDA

Kolar dairy produce Peda which is made from pure milk kova which is very delicious

sweet and which can be eaten by a child to an old man.

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AMUL MASTI DAHI

Recently Kolar dairy was taken up the production of “AMUL Masti-Dahi” in

polythene cups of units of 200gms and 400gms. The Milk is used for “Masti-Dahi”

preparation consists of 4.7% of fat and 11% of SNF added with lactic stator culture.

Gujarat Co-operative Milk Marketing Federation (G.C.M.M.F) is marketing this

product.

KOMUL had set high standards for its products and customer services, its prior reliance

on manual operations made it difficult to keep up with surging demand. In designing the

“Mega Dairy”, Komul looked towards an automated system that would allow it to

maintain consistent in quality production of each product. Energy and power is the major

requirements which is used effectively and controlled properly all over the plant.

Employees are given training effectively to use the new automated systems and to update

the valuable management information which is collected from the respective departments.

Mega Dairy has a capacity to process 8.5 lakh litres of Milk per day. This Dairy has been

built by investing Rs.35.70crores obtained as a term loan from National Dairy

Development Board. At present the mega dairy is working with the concept of “State-of-

the-art” with the help of available technology where the Union has the ability to

manufacture Milk and milk products to world-class standards which ultimately helps the

consumers at the end. Milk and Milk products now reaches the market faster, at a higher

quality and with a longer shelf life.

UHT MILK DIVISION (GOOD LIFE)

UHT refers to Ultra-High Temperature heat-treated Milk. The concept of UHT milk is to

produce the milk at highest quality i.e. bacteria free which retains the nutritional quality of

the milk. In this process milk is exposed to a temperature of 137ºc for 4 sec and

immediately cooled at room temperature this process is called as sterilization.

The technology of packing UHT milk is provided by Tetra Pack Company and also the

raw materials required for the production is supplied by Tetra Pack Company. The

packing material consists of 6 layers i.e. 3 layers of Polythene, 1 layer of Aluminium and 2

layers of Paper which helps to prevents the enter of air, water, light and bacteria there by

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keeping the Milk at high quality. The company follows the six sigma in UHT division

where there is “less than one defect out of ten lakhs products”, this has been achieved in

UHT Milk due to good quality of initial raw Milk.

UHT PRODUCTS

At present four varieties of UHT products are produced

GOOD LIFE

This is made from pure milk with bacteria free in tamper proof tetra-fino pack this

helps to keep the milk fresh for 60 days without refrigeration until opened. It contains

3.6% FAT and 8.63% SNF.

It has sales all over India and also exports to Singapore.

It sells 80 lakh litres of good life per day to Indian Military.

SMART

This is made from cow’s pure milk. It is Homogenized and Double toned milk with

bacteria free and packed in tamper proof tetra-fino packs with the life of 60 days for

500 ml brick pack and 180 days for 1000 ml brick pack. It contains 3.6% of FAT and

11.50% of SNF.

SLIM

This is also made from cow’s pure milk. It is Homogenized and skimmed milk with

bacteria free and packed in tamper proof tetra-fino packs with the life of 60 days for

500 ml brick pack and 180 days for 1000 ml brick pack. This skimmed milk is 99.5%

fat free. It contains 0.5% FAT and 9.17% SNF.

SAMPOORNA

This is standardized milk. It is Homogenized and skimmed milk with bacteria free and

packed in tamper proof tetra-fino packs with the life of 60 days for 500 ml brick pack

and 180 days for 1000 ml brick pack. It is also 100% pure Pasteurized milk. This is

more fat content milk which is very tastier than other products. It contains 4.5% FAT

and 8.5% SNF.

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COMPETITORS

There are more than 125 companies engaged in the production of milk in Karnataka. As

we know that Kolar is located at the border of Andhra Pradesh and Tamilnadu. It faces

huge competition as both the state products are entered in to the local markets. The main

competitors are:

HERITAGE

K C A

SHRUTHI

SWASTIC

GOLD FIELD

DIARY PLUS

NILGIRIS

AROGYA

TIRUMALA

SRI LAKSHMI etc.,

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Managing director

Peons / Helpers

General Manager

Deputy Manager

Superintendent AA-I

PS/TO/PRO/AO/OM/LO

AA II/STENO/SR.TYPISTAA III

ADMINISTRATION DEPARTMENT

PS – Personal secretary

TO – Time officer

PRO – Public relation officer

AO – Administrative officer

OM – Office manager

LO – Labour officer

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The administrative manager leads the department; he works under the general manager.

The administrative department in KCMUL holds all the office work in the company. The

hierarchy in this department is that the Administrative Manager reports to the General

Manager and then the General Manager reports to the Managing Director who is the chief

of Administration Department.

FUNCTIONS OF THE ADMINISTRATIVE DEPARTMENT

The main function of the administrative department is concerned with the following.

Employee’s attendance.

Sanction of increments.

Promotions.

Transfer.

Disciplinary action against misbehaviour of employees.

Termination and retirement.

To follow the policies and principles laid down by the top management.

Recruitment and performance appraisal etc.,

FACILITIES PROVIDED TO EMPLOYEES OF KOMUL

Training is provided to all officers and employees in their respective fields, conducted

at KMF and NDDB Erode/Gujarat, etc. The main aim of giving training is to gain

knowledge and experience in their work, which is helpful to the employees and to the

organization.

Canteen facilities are provided at very less rate ( meal @ Rs. 8 for the employers and

the labourers and Rs.15 for the visitors)

Conveyance allowance is given to all employees.

Shift allowance is provided to the employees who work in shifts in respective places.

Salary of Rs. 180 is paid to the contract labourers on daily basis.

The following leave facilities are provided:

30 days earned leave (EL) in a year.

15 days casual leave in a year.

Every month second Saturday is holiday for the employees.

Half pay leave for 20 days in a year.

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Managing director

Senior/Milk Dispatches

General Manager

Manager

Technical officer

Deputy Manager

Marketing officers

Computer Operators

Peons/Helpers

MARKETING DEPARTMENT

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KCMUL has a well-established marketing department. Marketing manager and deputy

manager takes in charge of all marketing and sales of milk and milk products. He takes

responsible in setting the targets and framing the plans and policies to achieve the targets

and also takes responsibility in forecasting the demand for their products in the market.

The company only have the authority and power to sell its product but the responsibility of

marketing the company products will be taken by the KMF. KCMUL sells its milk and

milk products under the corporate brand name of “NANDINI” within and outside the

state. The main functions of the Marketing Department are;

The Selection of agents and calling tenders for setting up of the parlours.

Dispatch of the indented supplies to the channel members.

Distribution of milk and milk products to local areas and district areas in its

jurisdiction.

To supply in time the quality milk to customers.

Improving the “consumer satisfaction index”

Meeting the needs of the channel members.

The company has taken few promotional activities to improve the sales like

Distribution of glow sign boards, Caps, T-shirts and Bags to the agents.

Wall paintings, Painting of insulated distribution transport vehicles.

Advertising on local cable network through TV by using celebrities.

Providing sponsorship, Distributing calendars, and Consumer greetings etc.

MARKETING STRATEGY OF KOMUL

Make the “Nandini” milk and milk products available in time and in enough quantity

throughout the day at customers’ convenient places to avoid competition.

Improve the quality of service provided to channel members and also to motivate them

to improve their sales.

Prompt consumer’s complaint redressal.

Strengthening the brand and trust with the customer’s.

Apart from this they are strengthening their infrastructure and with new equipment to

provide all the facilities at all unions of the state.

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RETAIL SALES OF MILK AND MILK PRODUCTS

DISTRIBUTION SYSTEM

Milk and milk products have been distributed twice a day that is in the morning and in the

evening. The distribution routes are allotted on the basis of the quantity of milk or the

number of crates ordered by the agents in each geographical area. At present there are 486

milk selling agents and 11 district routes that are operating for the distribution of milk and

milk products to the public.

Agents are appointed on the basis of organizational norms. The agents are placed at

minimum distance of place from each other. Initially the pay Rs.10,200 to become an

agent and the member of the company. Then they can order for the quantity of goods they

require. The payment for the products should be made on the time of delivery in cash or in

cheque. No credit facility is provided to the agents.

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Manufacturer

Retailer (Agent, Dealer)

Customer

Particulars Sales/day

Milk 2,50,000 litres

UHT (Good Life) 2,00,000 litres

Curd 25,000 litres

Masala Butter milk 2,000 litres

Cheese 2,000 kgs

Ghee 6,000 litres

Peda 40 kgs

Managing director

Superintendent

General Manager

Manager

Assistant Manager

Deputy Manager

Accounts officer

AA-I

AA-II

Peons /Helpers

FINANCE DEPARTMENT

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Finance department is very important department in all organizations because it helps in

smooth functioning of other departments in the organization. It has to take decisions in the

matters like Where to invest? How much to invest? When to invest? What is ROI? It

should take care on the payments to the milk suppliers, employees and the labourers and

the receipts of cash from the sales. Finance department helps in smooth functioning of

other departments in the organization. The main functions of the department is to

Preparation of financial reports.

Preparation of annual budgets and budgetary controls.

Scrutinizing of purchase bills, proposals and passing of all payment bills.

Maintenance of sales ledger and subsidiary books like cashbook, debtors, and salary

register.

Preparation of cost sheet etc.

The company has their own Auditors and take care of the financial data.

The KCMUL is in a good financial position with a turnover of 664 crores in the year

2011-12 and makes a profit of more than 1.95crores. The sales and profits are drastically

increasing from past 3 years.

An overview of the financial statements from 2008-09 to 2010-11

Particulars 2009-10 2010-11 2011-12

Purchases 3,48,89,20,704.63 4,38,41,67,552.03 5,36,83,70,271.93

Sales 4,44,49,18,137.80 5,45,46,49,501.19 6,64,72,45,829.12

Share capital 28,03,78,400.00 28,00,81,100.00 28,09,32,700.00

Fixed Assets 30,44,69,793.61 38,76,12,638.33 35,76,60,101.64

Current Assets 62,90,32,564.07 69,86,92,786.69 76,68,19,994.43

Current Liability 22,86,78,902.06 34,64,79,588.60 42,33,35,574.550

Profits 1,85,81,426.68 1,50,94,635.80 1,95,12,928.25

MIS, STORES, PURCHASE

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AN OVERALL ASSESSMENT OF THE ORGANIZATIONAL STUDY

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As an essential academic requirement of SBS Swiss Business School, we are required to

undertake an Internship/organizational study in a company. Accordingly I had done my

organizational study in Kolar-Chikkaballapura Co-operative Milk Union Societies limited,

from May 28th to July 23rd in Kolar.

This is a Milk union co-operative society which is completely different from other private

or public companies and other co-operative societies. As in other companies’ Shareholders

are the owners of the company but here the Milk producers are the owners of the

company. This company works as a 3-tier co-operative system.

1. Primary level

2. District level

3. State level

1. Primary level: This is an Independent and Autonomous co-operative system which

has its own bylaw under the rules and regulations of co-operative societies act. The

primary level starts from the villages, where the milk producers in the village will join

together and form a society called District co-operative society and collects all the

milk from the producers and sell it to the company at a specific price. Each village has

one society. They have all the rights and acts like the owners of the company. The

primary level will be headed by 9 members who are nominated and elected by the

DCS members.

2. District level: This is also an Independent and Autonomous co-operative system

which has its own bylaw. The district level starts from the Taluks, there are totally 13

unions in Karnataka where few Taluks has its own union and other few unions are

framed by two Taluks together. This company comes under district level which is

framed by the collaboration of Kolar and Chikkaballapura districts. The district level

will be headed by 13 members who are elected from different departments and acts as

Board of Directors.

3. State level: In this level all the 13 unions will join together and works as a single

society called KMF. This is registered under the Co-operative societies Act and has its

own bylaw. The main aim of this KMF is to provide the quality milk to the customers

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and to provide Technical inputs, Emergency services, First aid Drugs, conduct

infertility Camps, Supply of Fodder and seeds. The state level helps all the unions by

providing above facilities and also by providing advertisement and marketing facilities

to sell the products. It also handles the surplus production of milk and the milk

products from the unions. The KMF plays a major role in fixing the price of the

products. This state level will be headed by BOD and the President who is elected by

the Government of Karnataka.

The KCMUL has many departments like Procurement Department, Production

Department, Administration Department, Marketing Department, Finance Department,

Stores Department, Purchase Department and MIS department. Each department plays its

important role in the success of the organization.

Procurement Department is the first and the important department from where the

company starts it work. The milk producers will supply the milk to the organization and

the procurement department takes the samples of the milk and tests its FAT content and

pays according to it, then they boil and chill the milk at required temperature and send it to

packing of milk. At present the company is procuring 8.5 lakh litres per day which is the

2nd largest procurement union in the state.

After the chilling of milk the production of milk and milk products will start. The chilled

milk will be distributed to various production areas like production of Milk Sachets and

UHT milk sachets, Curd, Butter Milk, Cheese and Peda. Then these produced products

will be stored and then it will be distributed to the agents or dealers.

The administration department takes care in recruiting the right employees at the right

time for the right place and also the contract labourers and pay salary according to the

state governments salary scale. They also take care in the smooth process of the

organization by maintaining the good relationship between employees and the labourers.

The Marketing department plays a major role in the organization where they are the main

to sell the produced products to the final consumers through distributors and the agents.

Marketing department guides the transport department by showing the routes where the

milk and milk products are sold and in what quantity. Marketing department also takes

care in the selection of dealers and agents by calling for tenders at the right time to

increase its sales. This department provides various offers and discounts to the agents for

sales promotion and helps the organization to gain profit. This department changes its

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strategies according to seasons and the situation. The company itself bare all the transport

charges and spends large amount of money from their profits.

Later the Finance department collects the entire amount from the sales of their products

and distribute accordingly to pay salary for employees and the labourers and to pay money

for the suppliers and behalf of this the finance departments spends money on the health

treatment of the cows and buffalos in the Medical Hospital. It also spends huge amount on

artificial insemination of cows.

Finally the MIS department collects and stores the overall company data. The Purchase

and Stores department acts accordingly and supply the required materials for the

continuous production.

Overall the organization is working well with lots of political pressure and with over

employment in all departments.

CONCLUSION OF THE REPORT

This report helps the reader to gain the knowledge on how exactly the organization works

and how the departments are used to run the organization successfully. The report also

shows the following

It shows the overall status of the organization

It provides a complete picture of the growth of the organization.

It shows the current position of the organization.

It gives an idea of how the products are produced and sold.

It clearly provides the complete information of each department with the

department charts.

It provides all the numerical facts in the procurement and production and sale of

milk and milk products.

APPENDICES

KMF Annual Report 2011-12

The Economic Times, News Paper (2nd July 2012, Page-7)

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The Public Relation Officer- Marketing Department.

REFERENCES

www.kmf.co.in

www.amul.co.in

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