Chapter – 1

INTRODUCTION AND INDUSTRY PROFILE

1.1 INTRODUCTION

This Organisation study report is about the functions and duties in the Manufacturing
Company called Karnataka Milk Federation (KMF) which is situated in Bangalore in a place
named Koramangala ,Dairy Circle ,Karnataka. This Organisation Study program was done in the
month of December-January for a period of 15 working days. The main purpose of doing this
Organisation study is to know what are the functions, duties, rules, regulations and
responsibilities which were followed by the company. The departments observed by me in this
company were Production, Animal husbandry, Marketing, Finance, and Quality Departments.
This study also helped me to learn a lot about how the managers manage the organization
without any distraction and complete the production on time with the available resources and
how they reduce the wastage of raw materials in the company with their strategies.

This Organisation study has given me an opportunity to work in the Manufacturing sector
and know the working procedures and functioning of the organizations. Through this report I
have given all the information about my Organisation study in the different sectors which is a
wonderful experience to work in the real world and know many simple techniques about working
of the company.

When I got into the Company I was thinking that I should be dressed in formals, but there
was no restriction on dressing, they expected me to dress well. On the first day to company I felt
very tensed and afraid to enter the company because everyone in there was new and it was my
first experiencing in a Organisation which include different levels of officials, but on seeing the
kindness and excellent polite behavior of the managers I felt grounded and felt free and relaxed
to ask them all a lot about the company, which in turn helped me a lot in the completion of my
Organisation study and compile a report.

Every day I had to report to my company guide and he used to explain about particular
department and section and later he send to the person in charge in that departments, and with his
guidance I needed to complete my task and submit daily report to the company guide and it
would be checked by him and he would let me know any changes to be made, which later helped
me to complete my Organisation study report.

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1.2 ORIGIN OF THE INDUSTRY IN INDIA

India has been the leading producer and consumer of dairy products worldwide since
1998 with a sustained growth in the availability of milk and milk products. Dairy activities form
an essential part of the rural Indian economy, serving as an important source of employment and
income. India also has the largest bovine population in the world. However, the milk production
per animal is significantly low as compared to the other major dairy producers. Moreover, nearly
all of the dairy produce in India is consumed domestically, with the majority of it being sold as
fluid milk. On account of this, the Indian dairy industry holds tremendous potential for value-
addition and overall development. According to the latest report by IMARC Group, titled “Dairy
Industry in India 2018 Edition: Market Size, Growth, Prices, Segments, Cooperatives,
Private Dairies, Procurement and Distribution”, the dairy market in India reached a value of
INR 7,916 Billion in 2017.

Along with offering profitable business opportunities, the dairy industry in India serves
as a tool of socio-economic development. Keeping this in view, the Government of India has
introduced various schemes and initiatives aimed at the development of the dairy sector in the
country. For instance, the “National Dairy Programme (Phase-I)” aims to improve cattle
productivity and increase the production of milk expanding and strengthening and expanding the
rural milk procurement infrastructure and provide greater market access to the farmers. On the
other hand, the private participation in the Indian dairy sector has also increased over the past
few years. Both national and international players are entering the dairy industry, attracted by the
size and potential of the Indian market. The focus is being given to value-added products such as
cheese, yogurt, probiotic drinks, etc. They are also introducing innovative products keeping in
mind the specific requirements of the Indian consumers. These players are also improving their
milk procurement network which is further facilitating the development of the dairy industry in
India. Looking forward, the market is expected to reach a value of INR 18,599 Billion by 2023,
exhibiting a CAGR of around 15% during 2018-2023.

2
 FIG 1.1

The report by IMARC Group is the fifth edition of their highly acclaimed publication on
the Indian dairy industry. The study is the result of an extensive research of the Indian dairy
industry that draws upon a comprehensive analysis of every major dairy segment in India. The
report is based both on secondary research and multiple waves of qualitative primary research
and hasdelved deeply into the following aspects of the Indian dairy market:

All-inclusive situation analysis of the Indian dairy industry and its dynamics

Segments covered:
Milk, Flavoured Milk, UHT Milk, Curd, Probiotic Products, Flavoured & Frozen
Yoghurts, Buttermilk, Lassi, Ghee, Butter, Cheese, Paneer, Cream, Khoya, Dairy Whiteners,
Skimmed Milk Powder, Ice Cream, Sweet Condensed Milk, Dairy Sweets and Whey.

3
 Focus of the analysis in each segment:
 Drivers and challenges in each market
 Historical, current and future sales trends
 Historical, current and future volume trends
 Historical, current and future price trends
 Size and analysis of the organized and unorganized markets
 Structure of the market
 Key players and products available in these markets
Understanding India’s Foreign Trade in the Dairy Industry

Segments covered: All major dairy segments

Focus of the analysis in each segment:

 Import volumes
 Import values
 Export volume
 Export values

Understanding Milk Procurement and Distribution in India

Focus of the analysis:

 Milk procurement models of private dairies and cooperatives
 Milk procurement prices in India
 Milk distribution models of private dairies and cooperatives
 Challenges of milk procurement and distribution in India

Understanding the Technical and Financial Requirements for Setting up a Dairy Plant

Focus of the analysis:

 Cost of setting up a dairy plant in India
 Loans and financing
 Techno – economic parameters
 Expected income and expenditures

Understanding the Government Policies in the Dairy Sector

4
 Focus of the analysis:
 Regulatory framework
 Government initiatives
 Duty structure
Evaluation of all Major Cooperatives and Private Dairies in India
Focus of the analysis:
 Organization Overview
 Financials and Processing Capacity
 Product Portfolio
SUPPLY CHAIN OF INDIAN DAIRY INDUSTRY

FIG 1.2

5
1.3 GROWTH AND PRESENT STATUS

Dairy industry of India has undergone considerable transformation mainly due to the
application of scientific production techniques and greater importance being given to the
development of dairy co-operative infrastructure that has contributed in no small measure
towards substantial growth in milk production since the early seventies. Nevertheless,. viewing
our dairy spectrum in the light of variabilities and changes that have taken place over time, it
becomes pertinent to ask whether the future of our co-operatives will remain as bright as in the
past if we were only to follow the principles and practices of the past.
India with about 19.76 per cent of the world's total cattle and buffalo population accounts
for only about 12 per cent of the world's total milk production (Government of India, 1997). Our
livestock are roughly half as efficient as the average milch animals in the world and probably
only one-fifth as efficient as those in the advanced countries. The milk grid in this country is
based on the average produce of millions of small uninformed farmers who are still unaware of
modern scientific ways of dairy farming. This is perceived as a major handicap, as the industry is
unable to attain the quality requirements to compete in the world market. Therefore, technologies
should be adopted to make milk production system viable and sustainable to usher in an era of
quality consciousness to compete internationally. The moot point to consider over here is
whether this is achievable with the kind of animals and resources poor dairy farmers have at their
disposal. India produces 70.8 million tonnes of milk annually (Government of India, 1999). The
organized sector in our country handles only 13 per cent of this total milk production
fihomkinson, 1995). The consumer prices of milk in India are comparable to some of the lowest
in the world due mainly to unremunerative and unattractive price offered to our dairy farmers for
their milk produce. Our purchasing power, and the demand for milk are not able to expand in
line with the increasing milk production. In terms of per capita consumption of milk, India
compares very poorly among the comity of world nations. An average per capita availability of
only 204 g milk per day pushes our country to the 57th place in the world in terms of milk
availability. However if our milk production continues to grow as it does now we would have
newer opportunities for launching a more meaningful marketing campaign. The cumulative
annual growth of milk in India stood at 1.64 per cent during the period from 1950-51 to 1960-61,
1.15 per cent from 1960-61 to 1973-74,4.51 per cent from 1973-74 to 1980- 81, 5.50 per cent
from 1980-81 to 1990-91, and 4.23 per cent from 1990-91 to 1996-97 (Government of
India,1999). We would then probably be in a position to increase our local consumption pattern
and reach out to world markets or to face a drastic price crash in the local market and to
withstand and absorb the resultant aftereffect of shrinkage in milk production. In the current
context of liberalization and increasing global integration of economies, it would be unfair on
Indian Dairy Industry to compare it with that obtaining in most of the vastly modern and
technologically far advanced western bloc countries in terms of in terms of a produce that is
globally competitive. It should be realized that in Indt4 the dairy industry is dependent on
millions of small farmers who produce only a liter or two of marketable surplus and, it is this

6
multitude of teeming millions who eventually contribute to the over all flood of milk. The
situation is entirely different in modern milk States. In most western countries, for example, each
of thousands of dairy farmers produces tonnes of milk. The sheer size and volume of production
indulged in by milk producers in these countries makes it amenable for them to adopt meaningful
scientific and technological means towards improving both quality and productivity. In contrast,
the milk produced by, individual dairy farmers is so minimal that it is often very difficult to
change their attitude in favour of modern animal husbandry practices that will make their
produce cost effective as well as remunerative. An abysmally low production volume handled by
our dairy farmers means introduction of any amount of technological innovation will not
appreciably improve their incomes. Thus, mere technological innovation is not likely to
transform the subsistence level dairy farmer into a market savvy commercial milk producer.
Only real economic incentives and inducements can coerce and compel such farmers to change
in favour of more profitable scientific dairy farming.

1.4 GLOBAL SCENARIO

WORLD TOP MILK PRODUCING COUNTRIES:

FIG 1.3

7
WORLD TOP MILK CONSUMING COUNTRIES:

FIG 1.4

GLOBAL CONSUMPTION INCREASING FASTER THAN POPULATION GROWTH:

 Global Consumption of protein increased from3.7 to 5.4 lakh tonnes per day- CAGR of
2%.
 Global Population increased from 5.4 to 7.0 billion- CAGR of 1%.
 Increasing Proportions of this growth is from Animal Protein.
Meat-2.9%, Dairy- 0.5% increase
Vegetable, Soy and Fruit-2% increase
Cereals –decreased 6.2%
GLOBAL DAIRY SECTOR- PRICE TRENDS

FIG 1.5

8
Prices of Dairy Products remain high despite increased production due to increasing demand and
higher cost of production.
 Price volatility is likely to remain in the near future.
 Thin volumes of global milk trade.
 Few players dominate global market.

GLOBAL MILK PRODUCTION:

Global milk production South Asia and EU-25 are the most important dairy regions,
accounting for 44 percent of global milk production. In the period 2002 to 2007, world milk
production grew by 13 percent, or by an average of 15 million tons of energy corrected milk
(ECM) per year – mainly driven by production increases in China, India and Pakistan. Overall,
therefore, developing countries relying predominantly on smallholder dairy production systems
have increased their shares in world milk production.

GLOBAL MILK CONSUMPTION:

Global milk consumption The majority of the world’s population lives in developing
countries, particularly in Asia. Population growth was the main driver of increased demand for
dairy products over the period analysed. However, per capita consumption increased
significantly in a few but highly populated countries, among them China, Indonesia and Viet
Nam. Based on milk equivalent (ME), average per capita global milk consumption amounts to
about 100 kg of milk/year, with very significant differences between countries/regions. Per
capita consumption in Western Europe is in excess of 300 kg of milk/ year compared with less
than 30 kg (and even sometimes as little as 10 kg) in some African and Asian countries. It may
be expected that increasing income levels will stimulate the demand for milk and dairy products,
meaning that future milk production will need to increase by more than 1.8 percent per annum.
Should this not be the case, dairy prices will rise significantly over past levels.

MILK PRODUCTION TRENDS:

An overview of milk production levels in different parts of the world, and recent trends.
The milk production charts are based on an IFCN analysis for 2006- 2007 compared with 2002,
undertaken in 2008. The analysis was based on milk production surveys (cow and buffalo milk)
in 78 countries and on secondary data from organizations such as the Food and Agriculture
Organization of the United Nations (FAO). The milk production volumes of all animal species
have been standardized to ‘energy corrected milk’ (ECM, 4.0 percent fat and 3.3 percent
protein). The data for milk fat and protein content are based on national statistics or, in the
absence of such statistics, on estimates.

9
SHARES IN GLOBAL MILK PRODUCTION

World milk production is derived from cows, buffaloes, goats, sheep and camels. As
shown in the map in 2007/2006 the major milk production regions are:

South Asia: 23 percent of global production, mainly India and Pakistan.

EU-25: 21 percent, mainly Germany and France.

USA: 12 percent.

CIS: 10 percent, mainly the Russian Federation and Ukraine.

Latin America: 10 percent, mainly Argentina, Brazil, Colombia and Mexico.

East and Southeast Asia: 8 percent, mainly China and Japan.

Africa: 5 percent − the largest milk-producing countries are Egypt, Kenya, South Africa and
Sudan.

Oceania: 4 percent.

Near and Middle East: 4 percent, mainly Iran and Turkey.

1.5 KEY PLAYERS IN THE INDUSTRY

Indian Dairy Industry 2017 Top Key Players - GCMMF (Amul), KMF, Mother
Dairy, TN Cooperative, Saras, Hatsun Agro Product Ltd.

The dairy industry in India has witnessed a strong growth over the past few years.
Some of the major driving factors include rising purchasing power of consumers, thriving
food sector, a strong demand for ready-to-eat dairy products and the improving distribution
network.

IMARC Group’s latest report, titled “Dairy Industry in India 2017 Edition:
Market Size, Growth, Prices, Segments, Cooperatives, Private Dairies, Procurement
and Distribution”, finds that the dairy industry in India reached a value of nearly INR
7,000 Billion in 2016, growing at a CAGR of 13% during 2010-2016. Dairy products form
an integral part of the daily diet across all income groups in India. Milk, ghee, curd, paneer
and cheese are extensively used to prepare a number of dishes in Indian households, which
include appetizers, sweets, beverages and desserts. Dairy products are also being introdu ced
in western food products in order to customize them as per Indian tastes; paneer is now
being added to pizzas, burgers, tacos and several other western food products in India.

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Highlights of the Dairy Industry in India:

Dairy products, such as curd, butter and ghee, are an integral part of the Indian diet.
The flourishing food industry and rising standard of living represent the primary growth
driving factors.

On the basis of product type, market is segmented into milk and value-added
products. One of the major growth-inducing factors of the Indian dairy industry is the
sustained growth of the economy, which is resulting in a rise in the disposable incomes and
the standard of living of consumers. As the demand for dairy products is income elastic, a
continuous rise in the disposable incomes is creating a positive impact on the market
growth. Further, the flourishing food industry in India plays an important role in the growth
of the dairy market. An increase in the consumption of bakery products and dairy-based
beverages has propelled the growth of the market. Apart from this, increasing urbanization
rate coupled with hectic lifestyle of consumers has also contributed to the demand for ready-
to-eat dairy products in the country, the most preferred being buttermilk, yogurt, flavoured
milk and cold coffee. Some of the other factors stimulating the market include improving
distribution network, changing dietary patterns of consumers, and aggressive marketing and
introduction of new dairy products by manufacturers. According to the report, the market is
further expected to reach a value of more than INR 16,000 Billion by 2022.

The market has been segmented into two categories, organised and unorganised
market. On the basis of product type, the market has been segmented into milk and value-
added dairy products. Based on competitive landscape, the key players in the market are
GCMMF (Amul), KMF, Mother Dairy, TN Cooperative, Saras and Hatsun Agro Product
Ltd.

1.6 MARKET ANALYSIS

In India, the dairy sector plays an important role in the country’s socio-economic
development, and constitutes an important segment of the rural economy. Dairy industry
provides livelihood to millions of homes in villages, ensuring supply of quality milk and milk
products to people in both urban and rural areas. With a view to keeping pace with the country’s
increasing demand for milk and milk products, the industry has been growing rapidly.

According to our research report “Indian Dairy Industry Analysis”, India is the world’s
largest milk producer, accounting for around 17% of the global milk production. Besides, it is
one of the largest producers as well as consumers of dairy products. Due to their rich nutritional
qualities, the consumption of dairy products has been growing exponentially in the country, and
considering such facts and figures, our study anticipates that the milk production in India will
grow at a CAGR of around 4% during 2011-2015.

11
 With the rising use of dairy products, the secondary market for dairy products has also
been flourishing, our report observed. For this, we have included the analysis of secondary
market for dairy products, including tea, coffee, infant nutrition, malted foods, and bakery
products. Covering the necessary aspects of the Indian dairy industry, the study facilitates
knowledge about its current market scenario and future growth.

Analyzing the past and current state of the industry, the report tries to find out how trends
like the entry of international companies and safe packaging are attracting more consumers and
leading to further growth in the market. This way, it presents a clear picture of the direction, in
which the industry is likely to proceed in the coming years.

The government is taking several initiatives and running plans and programs like
National Diary Plan and Intensive Dairy Development Program to meet the growing demand for
milk in the country. Our report talks about such schemes, and government regulations to present
an objective and balanced picture of the industry. The study also discusses the opportunities and
strengths of the dairy market in a complete SWOT analysis, and provides an insight into the
competitive landscape. We hope that our comprehensive research will help clients align their
business strategies as per market dynamics, and make sound investment decisions.

1.7 PEST ANALYSIS AND PORTER’S FIVE FORCES ANALYSIS

PEST ANALYSIS:

The dairy industry is a sub-set of the agricultural industry and deals with the production,
consumption and sale of milk-based products, such as milk, butter, cheese, cream and ice cream.
There are many factors which affect the running of the dairy industry, and a PESTLE analysis of
the industry is as follows:

Political:

Government policies and regulations regarding agricultural products will affect the
farmer’s decisions to keep livestock and extract milk out of them relative to other uses of
livestock. If government policies and incentives are in favor of, for example, promoting beef or
mutton, it would be more in farmer’s interests to slaughter their cows rather than draw milk from
them. This is especially true in agrarian economies. In certain countries which import
agricultural products instead of producing its own, the dairy industry would also be affected by
import laws as well as the government’s foreign relations. Similarly, a company that exports its
dairy products must take care to comply with the regulations of its own country, but also of the
country to which it wishes to export to.

12
Economic:

The most obvious economic factor affecting the dairy industry would be purchasing
power in the economy as a whole. Milk in its most basic form is considered an essential product
and people still make an effort to purchase milk regardless of their cash position. As a result, the
sales of milk would not be significantly hit in case of a reduction in a family income, unless the
income is reduced to a bare minimum. On the other end of the spectrum, an increase in
purchasing power will only boost the sales of milk up to a certain level after which it would taper
off, as there is a limit to the amount of milk a family can assume. Increase in purchasing power
however can lead to an increase in the acquisition of pets such as dogs and cats and their
spending on these pets will increase. This means they will be purchasing more milk to feed their
pets, and this will lead to an increase in milk sales. A reduction in purchasing power, for example
one which is caused by an increase in inflation, will have the opposite effect as people cease to
acquire pets or abandon their existing ones.

In the case of dairy products other than milk, an increase in purchasing power will cause
an increase in consumption, while a decline in purchasing power will have the opposite effect.
This is because these products come under the category of luxuries and/or non-essential goods.

Sociological:

A Move towards vegan lifestyles will negatively affect the sales of dairy products.
Vegans make it a point to shun all animal products, including milk and eggs ,in their lifestyle
including their diet. As this lifestyle gains more and more followers , the sales of milk and other
dairy products ,including ice cream and chocolate will decrease , negatively impacting the dairy
industry.

Another factor that could affect the dairy industry is growing concerns over halal foods in
regions where muslims are in a majority. This is because muslims do not consume products that
they do not believe to be halal, so if a dairy product manufacturing is considering to expand into
amuslim-majority region it must take care of this issue before it considers entering such a
market. Milk itself is generally considered a halal product ,but other ready made desserts for
example ice creams will have to be halal-certified before they can expect to be successful in
muslim-majority parts of the world.

Attitudes towards obesity can also affect sales of milk and dairy products in the market.
A general perception that full-fat products contribute towards obesity can cause a shift away
from full-fat versions towards healthier lower fat or skim varieties. Similarly, other ingredients
such as sugar and gluten may also trigger certain conditions such as diabetes or gluten allergies.
A dairy manufacturer needs to take all this into account before launching a particular or product
line.

13
 Technological:

Technology has made it possible for dairy manufacturers to market several different
kinds of dairy products, along with several variants of these products at a very low cost. A main
factor in the upward trend of the dairy industry has been the pace with which technological
advances have been embedded into farming practices, often enough under the pressure of falling
prices and the necessity to vindicate land values resulting from excessive optimism in periods of
rising prices.

PORTER’S FIVE FORCES:

"Five Forces that Shape Strategy", Michael Porter observed five forces that have
significant impact on a firm's profitability in its industry. These five forces analysis today in
business world is also known as -Porter Five Forces Analysis. The Porter Five (5) Forces are -

 Threat of New Entrants

 Bargaining Power of Suppliers
 Bargaining Power of Buyers
 Threat from Substitute Products
 Rivalry among the existing players.

FIG 1.6

14
 Porter Five Forces is a holistic strategy framework that took strategic decision away from
just analyzing the present competition. Porter Five Forces focuses on - how Dairy Crest Group
Plc can build a sustainable competitive advantage in Food & Beverage industry. Managers at
Dairy Crest Group Plc can not only use Porter Five Forces to develop a strategic position with in
Food & Beverage industry but also can explore profitable opportunities in whole Consumer
Goods sector.

Bargaining Power of Suppliers:

 High competition among suppliers (Milk)

High levels of competition among suppliers acts to reduce prices to

producers. This is a positive for Milk. "High Competition Among
Suppliers (Milk)" has a significant impact, so an analyst should put
more weight into it.

 Volume is critical to suppliers (Milk)

When suppliers are reliant on high volumes, they have less

bargaining power, because a producer can threaten to cut volumes
and hurt the supplier’s profits. This can positively affect Milk.

 Critical production inputs are similar (Milk)

When critical production inputs are similar, it is easier to mix and

match inputs, which reduces supplier bargaining power; a positive
for Milk.

 Bargaining Power of Buyers:


 Low buyer price sensitivity (Milk)

When produces have low dependence, distributors have less

bargaining power. Low dependency positively affects Milk.

 Low dependency on distributors (Milk)

When produces have low dependence, distributors have less

bargaining power. Low dependency positively affects Milk.

15
  Product is important to customer (Milk)

When customers cherish particular products they end up paying

more for that one product. This positively affects Milk.

 Large number of customers (Milk)

When there are large numbers of customers, no one customer tends

to have bargaining leverage. Limited bargaining leverage
helps Milk

Rivalry among the existing players:

 Existing Rivalry
 Large industry size (Milk)

Large industries allow multiple firms and produces to prosper

without having to steal market share from each other. Large industry
size is a positive for Milk.

 Threat of New Entrants:

 Advanced technologies are required (Milk)

Advanced technologies make it difficult for new competitors to

enter the market because they have to develop those technologies
before effectively competing. The requirement for advanced
technologies positively affects Milk.

 Geographic factors limit competition (Milk)

If existing competitors have the best geographical locations, new

competitors will have a competitive disadvantage. Limiting
geographic factors positively affect Milk.

Threat from Substitute Products:

 Advent of soy milk

16
 Chapter – 2
COMPANY PROFILE

2.1 BACKGROUND AND HISTORY

At KMF, each day is filled with providing new inspiration to consumers, to create fresh
trends in dairy consumption. Each of their brands, plays a central role in people's lives they
awake to them and consume them all day long. Each with their own unique taste and place in
life. They are passionate about making milk moments a source of delight and inspiration.
From new ways to delight children, to healthier ways to spread goodness and cheer in families,
from delicious ways to entertain friends, to providing the quickest ways in which a mother can
provide taste and nutrition. KMF has led successful dairy innovation in India. Their wide range
of products are designed to be both delicious and healthy.

Dr. Kurien ushered in ‘White Revolution’ in India with ‘Operation Flood’, the largest
project for dairy development in the world. As a direct result, India became self-sufficient and a
global leader in milk production and dairy farmers are the architects in their own development.
This revolution led to an increase in milk production many fold which led to the co-operatives
declaring milk holidays around Pune. Karnataka Milk Federation (KMF) sells products such
as pedha, paneer, curds and milk in the name of Nandini. It is a federation of milk producers
association working on cooperative principles. Almost every district in state of Karnataka has
milk producing co-operatives. The milk is collected from farmers who are its members,
processed and sold in the market by the brand of Nandini. It is the second largest milk co-
operative in India after AMUL.KMF started in 1955 in Kudige, Kodugu district. KMF was
founded in 1974 as Karnataka Dairy Development Corporation (KDDC) to implement a dairy
development project run by the World Bank. In 1984 the organisation was renamed KMF. KMF
has 14 milk unions throughout the Karnataka State which procure milk from Primary Dairy
Cooperative Societies (DCS) and distribute milk to the consumers in various urban and rural
markets in Karnataka State with 1500 members. to offer consumers nutrition, health and well-
being.

Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body for
the dairy co-operative movement in Karnataka. It is the second largest dairy co-operative
amongst the dairy cooperatives in the country. In South India it stands first in terms of
procurement as well as sales. One of the core functions of the Federation is marketing of Milk
and Milk Products. The Brand "Nandini" is the household name for Pure and Fresh milk and
milk products. KMF has 14 Milk Unions covering all the districts of the State which procure

17
milk from Primary Dairy Cooperative Societies(DCS) and distribute milk to the consumers in
various Towns/Cities/Rural markets in Karnataka.

Karnataka Dairy Development Cooperation(KDDC), the first ever World Bank/

International Development Agency funded Dairy Development Program in the country started in
Karnataka on co-operative lines with the organisation of Village Level Dairy Co-operatives in
1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75
with the financial assistance from World Bank/IDA, Operation Flood II & III. The Anand Pattern
three tier organisation structure – Dairy Cooperative Societies at the village level, District Milk
Unions at the District level to take care of the procurement, processing and marketing of milk
and provide technical input services for enhancing milk production at producers level and
Federation at the state level to co-ordinate the growth of the sector in the State, are resolutely and
harmoniously working hand-in-hand in creating self-sustaining rural economy based on
cooperative dairying. KMF is one of the few federations in the country, who have converted
dairying from a subsidiary occupation into an industry.

Coordination of activities among the Unions and developing market for Milk and Milk
products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized
by the respective Milk Unions. Surplus/deficit of liquid milk among the member Milk Unions is
monitored by the Federation. While the marketing of all the Milk Products is organized by KMF,
both within and outside the State, all the Milk and Milk products are sold under a common brand
name NANDINI.

The Federation is striving to create a self-reliant and vibrant rural economy in Karnataka
by providing a supportive and conducive environment for the growth of Dairy Cooperatives as
autonomous economic and social institutions. The Federation is largely successful in realizing
the objectives of dairying during the last four decades of dairy development in Karnataka State.
It is by-and-large successful in providing a viable subsidiary occupation to unemployed rural
poor so as to raise their income earning capacities and to supply adequate quantity of quality
milk at reasonable prices to urban consumers.

The results of effective dairy development by KMF have made far-reaching and
extensive impact on rural landscape in Karnataka. The best remunerative milk purchase price to
farmers, efficient and timely input services, delivered at the door-steps to farmers, such as,
unfailing veterinary health services to any remote village, quality artificial insemination for
breed improvements, supply of balance cattle feed at less than the market price, etc., have made
the farmers to increasingly patronize their cooperative. The extent of patronization by farmers is
so complete, that dominant share of marketable surplus milk of farmers in Karnataka is procured
by KMF dairies and hardly there is any organized private dairy milk procurement, which is
widely prevalent in other parts of the country

18
2.2 GROWTH PROCESS

KEY ITEMS UNIT 1976-77 2015- 2016- 2017-18 2018-

16 17 19(upto
Oct'18)

Dairy Co-operatives
Nos 416 14826 15074 15864 15906
DCS Registered

DCS Functioning
Nos 13270 13517 14256 14401
Women DCS Registered
Nos 3949 3919 4122 4122
STEP Registered
Nos 2104 2274 2374 2374

STEP Functioning
Nos 1943 2088 2199 2199

Membership
Nos 37000 23.50 23.54 24.60 24.56
Lakhs Lakhs Lakhs Lakhs
Ann.Avg. Milk
Procurement LKPD 0.50 64.88 65.51 70.81 76.51
72.30 72.84 77.63 84.44
Peak Procurement LKPD (June'15 (July'1 (June'17 (June'18)
) 6) )
Avg.Milk Sales LLPD 95050 34.38 33.32 34.72 34.75

Avg.Curd sales LKPD

3.97 4.09 4.39 4.64
Avg.Good life sales LLPD
3.56 4.03 5.02 5.25
Daily Payment to Rs.Cror 0.09 14.62 16.00 18.22 18.36
Farmers es
TotalTurnover(KMF & Rs.Cror 8.82 11779 13133 13556 -
Unions) es

Source: https://www.kmfnandini.coop/about-us

19
2.3 VISION AND MISSION

Company 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 impacts to the rural
income ,dairy productivity and rural employment. To abridge the gap between price of milk
procurement and sales 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.

Company 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.

20
 2.4 OBJECTIVES

KMF is a Cooperative Apex Body in the State of Karnataka representing organisations of

milk producers' and implementing all round dairy development activities to achieve the
following objectives:

 To ensure assured and remunerative market round the year for the milk produced by the
farmer members.
 To make available quality milk and other premier dairy products to urban consumers.
 To build & develop village level institutions as cooperative model units to manage the dairy
activities.
 To ensure provision of inputs for milk production, processing facilities and dissemination of
know how.
 To facilitate rural development by providing opportunities for self employment at village
level, preventing migration to urban areas,introducing cash economy and opportunity for a
sustained income.

The philosophy of dairy development is to eliminate middlemen and organise institutions

to be owned and managed by the milk producers themselves, employing professionals. To sum it
up, every activity of KMF revolves around meeting one basic objective: 'Achieve economies of
scale to ensure maximum returns to the milk producers, at the same time facilitate wholesome
milk at reasonable price to urban consumers'. Ultimately, the complex network of cooperative
organisation should build a bridge between masses of rural producers and millions of urban
consumers and in the process achieve a socio-economic revolution in every hinterland of the
State.

2.5 UNITS OF KMF

KMF has the following Units functioning directly under its control:

 Mother Dairy, Yelahanka,Bangalore.

 Nandini Hi-Tech Product Plant, Channarayapatna.
 Nandini Milk Products, KMF Complex, Bangalore.
 Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan/Shikaripura.
 Nandini Sperm Station (formerly known as Bull Breeding Farm & Frozen Semen Bank) at
Hessaraghatta.
 Nandini Packaging Film Plant at Munnekolalu, Marathhalli.
 Central Training Institute,Bangalore & Training Institutes at Mysore/Dharwad
 Ice Cream Plant, Bellary.

21
2.6 SWOT ANALYSIS

STRENGTH:

1) The network and the cooperation between all the 13 co-operation units are very strong.

2) The production of milk product and milk satisfies the consumer need in both price and
quality.

3) Monitoring the quality of milk and milk products of the unions so, nobody can
dissatisfy the consumer.

4) Regularly attending the customer complains

5) Most important is the trust of people on KMF

WEAKNESS:

1) The company should pay attention to its advertising and strategy though Nandini milk
has a monopoly market.

2) Lack of employees in the quality control department

OPPORTUNITIES:

1) Since KMF is the 3rd largest milk union and biggest in south India, so it has an
opportunity to enter into international market.

2) It is already making different milk products and also has a good infrastructure and it is
a well known brand so it can go for other more milk products.

THREATS:

1) Consumer increasingly expects high quality and service. They perceive fewer
real products difference and show less brand loyalty.

2) Customers are also showing greater price sensitivity.

22
2.7 ONGOING FUTURE PROJECTS

ONGOING PROJECTS:

1) Establishment of 100 MTPD New Mega Milk Powder Plant with an approximate outlay of Rs.
300 crores in Kannamangala Village , Channapatna Taluk, Ramanagara District is envisaged, to
meet surplus milk conversion requirement of southern part of Karnataka
2) Koppala Dairy with 60-100 TLPD capacity expandable to 8 LLPD at an estimated cost of
Rs.38 Crores
3) Mega Dairy at Mysore 6 LLPD capacity expandable to 8 LLPD at an estimated cost of Rs.124
Crores
4) New 3 LLPD to 5 LLPD capacity Dairy and 2 LLPD UHT Plant at Chamarajanagara at an
estimated cost of Rs.125 Crores
5) Chikkaballapura Dairy with UHT Plant at an estimated cost of Rs. 100 Crores
6) Establishment of new dairy at Bagalkot with a capacity of 50 TLPD -1 LLPD at an estimated
cost of Rs.29 Crores
7) Uppoor Dairy of capacity 1.5 – 2 LLPD at Udupi District. Rs – 80 Crores
8) Establishment of new mega dairy and Milk products plant at Kanakapura – Rs.447 Crores
9) Establishment of Milk Powder Plant of 30 MTPD capacity at Dharwad at a cost of Rs. 27
crores
10) Mega Dairy at Mandya with capacity of 8 to 12 LLPD at an estimated cost of Rs. 180 Crores
11) Construction of Quarters at KMF Central Office Premises at an estimated cost of
Rs.8 Crores
12) Projects Under PPP :

a) Establishment of Deep Freezers at Chellaghatta an approximate cost of Rs.12 Crores

b) Establishment of 300 MTPD New Cattle feed plant at Arakalagoodu at an estimated cost of
Rs. 78 Crores

13) Establishment of New Dairy at Davanagere for SHIMUL of capacity 3LLPD to 5LLPD at a
estimated cost of Rs.85 Crores
14) Construction of Bull mother farm development at Nandini Sperm Satation,Hessaraghatta,at
an estimated cost of Rs.4 Crores
15) Establishment of New 300MT capacity Cattle Feed Plant at Dharwad at an estimated cost of
Rs.23 Crores
16) New Product Plant at Shivamogga dairy at an estimated cost of Rs. 25 Crores

FUTURE PROJECTS:

1) Projects Under PPP :

23
a) Establishment of Corrugated Box Manufacturing Unit at Challaghatta at an approximate cost
of Rs.25 Crores

b) New Nandini Packaging Film Plant at an approximate cost of Rs.80 Crores

2) 3 LLPD to 5 LLPD Capacity Dairy at Davanagere at an estimated cost of Rs. 85 Crores

2.8 PRODUCTS OF KMF

MILK

Nandini Pasteurised Toned Milk

Karnataka’s highest selling and most preferred milk. Pasteurised Toned milk with Min.
3.0% fat and Min.8.5 % SNF content make this milk the best choice for all purposes and all
generation.

Available in 200ml/250ml, 500ml, 1 liter and 6 liters pouches. Homogenised variants

also available.

Nandini Double Toned Milk

Pasteurized Double toned milk. Homogenised milk with Min. 1.5% Fat and Min. 9.0 %
SNF . Ideal for Health conscious people and senior citizens. Available in 250ml, 500ml and 1 ltr
pouches.

24
Nandini Homogenised Cow's Pure Milk

Nutrient rich homogenised milk with Min.3.5% fat and Min. 8.5 % SNF. Enjoy the
thickness and extra creamy feel till the last drop, thus preparing more cups of tea/coffee out of
every pack.

Available in 200ml/250ml, 500 ml, 1 litre and 6 litre pouches.

Nandini Shubham Pasteurized Standardized Milk

Pure pasteurised standardized milk having 4.5% fat and 8.5% SNF. Processed with all the
goodness of healthy milk for healthy growth in children.

Available in 200ml/250ml ,500ml and 1 litre pouches.

Nandini Samrudhi Pasteurized Full Cream Milk

Pure pasteurized full cream milk with 6.0% fat and 9.0% SNF. Rich creamier and tastier
milk. Ideal for preparing homemade sweets.

Available in 200ml/250ml 500ml and 1 litre pouches.

25
Nandini Special Toned Milk

Nutritious Homogenized milk with 4% Fat and 9% SNF(as against 3% Fat and 8.5% SNF
Toned Milk) with added solids. Much more thicker and tastier. Good for preparing thick curds.

Available in 200ml/250ml, 500ml and 1 litre pouches.

Nandini Shubham Gold Milk

Pure pasteurized milk having 5% Fat and 9% SNF. Processed with all the goodness of
healthy milk for healthy growth in children.

Available in 500ml and 1 litre pouches only in Ballari.

Nandini Homogenized Toned Milk

Nutrient rich homogenised milk with Min.3.5% fat and Min. 8.5 % SNF. Enjoy the
thickness and extra creamy feel till the last drop, thus preparing more cups of tea/coffee out of
every pack.

Available in 200ml/250ml, 500 ml, 1 litre pouch.

26
Nandini Pasteurized Full Cream Milk-Andhra Pradesh and Telangana States

Pure pasteurized full cream milk with 6.0% fat and 9.0% SNF. Rich creamier and tastier
milk. Ideal for preparing homemade sweets.

Now available in 500ml pouchs in Hyderabad,Secunderabad and Rangareddy districts of

Telangana state and in Medak district of Andhra Pradesh packed by Hassan Milk Federation.

Also available in Tirupati, Andhra Pradesh in 500ml pouch packed by Bengaluru Milk
Union.

Nandini Pasteurized Standardized Milk- Andhra Pradesh and Telangana States

Pure pasteurised standardized milk having 4.5% fat and 8.5% SNF. Processed with all the
goodness of healthy milk for healthy growth in children.

Now available in 500ml and 1liter pouchs in Hyderabad,Secunderabad and Rangareddy

districts of Telangana state and in Medak district of Andhra Pradesh packed by Hassan Milk
Federation.

Also available in Tirupati, Andhra Pradesh in 500ml and 6liter pouch packed by
Bengaluru Milk Union.

27
Nandini Special Toned Milk- Andhra Pradesh and Telangana States

Nutritious Homogenized milk with 4% Fat and 9% SNF(as against 3% Fat and 8.5% SNF
Toned Milk) with added solids. Much more thicker and tastier. Good for preparing thick curds.

Now available in 200ml,500ml , 1 liter and 6 liter pouchs in Hyderabad,Secunderabad

and Rangareddy districts of Telangana state and in Medak district of Andhra Pradesh packed by
Hassan Milk Federation.

Also available in Tirupati, Andhra Pradesh in 200ml,500ml , 1 liter and 6 liter pouch packed by
Bengaluru Milk Union.

Nandini Pasteurized Double Toned Milk-Andhra Pradesh and Telangana States

Pasteurized Double toned milk. Homogenised milk with Min. 1.5% Fat and Min. 9.0 %
SNF . Ideal for Health conscious people and senior citizens.

Now available in 270ml pouch in Hyderabad,Secunderabad and Rangareddy districts of

Telangana state and in Medak district of Andhra Pradesh packed by Hassan Milk Federation.

28
UHT MILK

Nandini Goodlife

Goodlife Cow milk is UHT processed milk with Min.3.0% fat and Min. 8.5% SNF.
Suitable for all generation.

Available in 100ml, 200ml and 500 ml Fino packs,500ml and 1 litre Tetra brick packs.

Nandini Slim

Good life Slim Skimmed Milk is UHT processed milk with Max. 0.5% fat and Min. 9.0%
SNF. It is perfect for a healthy lifestyle among fitness conscious people and senior citizens

Available 500 ml Fino packs, 500 ml and 1 liter Tetra brik packs.

Nandini Goodlife UHT Long Life Milk

Good life Cow milk is UHT processed milk with Min 3.5% fat and Min 8.5% SNF.
Suitable for all generation.

Available in 500ml and 1 litre Tetra Brik Packs.

29
Nandini Smart Fortified with Vitamins A+D

Good life Smart Homogenised Double Toned Milk UHT processed milk with Min 1.5%
fat and Min 9.0% SNF fortified with vitamins A and D. Suitable for preparing tea/coffee, milk
shakes and milk delights for people leading a fitness conscious lifestyle.

Available in 100ml, 200ml and 500ml Fino packs,160ml,200ml,500ml and 1 litre Tetra
brick packs.

Nandini Sampoorna

Sampoorna Homogenised Standardized UHT processed Milk . Nutrient –rich wholesome

milk with Min.4.5% fat and Min. 8.5 % SNF for active energy and good strength in growing
children.

Available 500ml and 1 litre Tetra brick packs.

Nandini Milk Shakes Premium

The Nandini Milk Shakes available in four Flavors. Mango Milk Shake is a delicious
creamy yummy milk shake. Its best summer drink as it energizes and reduces hunger pangs.

30
 Smooth creamy irresistibly delicious chocolaty taste which leaves kids asking for more.
A delightful Vanilla Milk Shake is a universal favourite. Its a simple yet enchanting taste which
makes everyone ask for more.

Nandini U.H.T.Sterilized Flavoured Milk in tetra brick –Pista,Strawberry and Badam

Flavoured milk available in processed UHT tetra brick packs,flavored milk can easily be
accompanied by travel time. Available in Pista, Strawberry and Badam flavor.

200ml Available on tetra bricks

Nandini Lassi inTetra Brick- Plain and Mango Lassi

Nandini plane lassi is made from fresh curd. It is a refreshing drink that can be used as a
cool drink in the hot weather during summers.

Nandini Mango Lassi is made from fresh curd. It is made with fresh mangoes using
natural mango pulp. The most delicious drink can be enjoyed.

200 ml Available in tetra brick packs.

Nandini Spiced Buttermilk in tetra pack

31
 Nandini Spiced buttermilk is a refreshing and healthy drink. It is made naturally with
high quality yogurt and traditional pure spices. It is useful for healthy and easy digestion.

Available in 160 ml And 200 ml tetra brick packs.

FLEXIPACK MILK

Nandini Trupti milk

Trupti toned milk is Nutrition protected UHT treated milk with min3.5% fat and 8.5%
SNF well suited for preparation of coffee and tea. It is packed in 5 Layer flexi pack under aseptic
conditions for 90 days of shelf life.

Now available in 180 ml and 500 ml flexi pack pouches, it is packed by Dakshina
Kannada Milk Federation and is available in Karnataka, New Delhi, Maharashtra, Kerala and
Goa and is packed by Tumkur Milk Federation and is available in New Delhi, Hyderabad and
Mumbai.

Nandini Healthly Life Milk

Now available in 180ml and 500ml pouch pack in Hyderbad of Telangana state and
Jammu and Kashmir.

32
CURDS AND OTHER FERMENTED PRODUCTS

Nandini Yoghurt

Nandini Fruit Flavoured Yoghurt made from pasteurized milk and added natural fruit
pulp and crush. Yoghurt comes in two exciting real fruits to deliciously and satisfyingly tickle
your taste buds with each scoop you enjoy.

Available in 100g Cup (Mango and Strawberry)

Nandini Mango Lassi

Nandini Mango Lassi made from fresh curd and added natural mango pulp. It is very
delicious and tasty drink.

Available in 180ml and 200ml pouches.

Nandini Real Thick Curd

Nandini real thick curd made from pasteurized toned milk with added milk solids.
Thicker curd in real terms, thick luscious curd that’s creamy and very curdilicious. Enriched with
milk proteins and carbohydrates. Make it nutritious. Real thick curd available in 200gm and
400gm firm plastic containers.

33
Nandini Curd

Nandini curd made from pasteurized toned milk. Fresh curd that tastes just like traditional
home made curd. Can be consumed as such or in combination with cooked rice or added as an
ingredient in certain dishes. Available in 200g, 500g, 1 kg and 6 kg pouches.
Nandini Butter Milk

Nandini spiced buttermilk is refreshing health drink is made from quality curd and
blended with natural seasoning and condiments to give that enlivening spicy tang of traditional
spiced buttermilk. It promotes health and easy digestion.

Available in 200ml sachet and 160ml and 200ml Tetra brick packs.

Nandini Sweet Lassi

Nandini Sweet Lassi made from fresh curd. The refreshing drink. Best alternative to cool
drinks during summer and sunny days. Available in 200ml pouches.

34
Nandini Shrikhand Elaichi Flavored

Nandini Shrikhand is a traditional Indian sweet dish. It is made of strained

yoghurt/Chakka with the addition of sugar, mango pulp and other non-dairy ingredients also. It is
very delicious and tasty. Shrikhand can be served plain or accompanied with pooris or chapathis.

Available in 100g,200g and 400g PP Containers.

Nandini Shrikhand Mango Flavored

Nandini Shrikhand is a traditional Indian sweet dish. It is made of strained

yoghurt/Chakka with the addition of sugar, mango pulp and other non-dairy ingredients also. It is
very delicious and tasty. Shrikhand can be served plain or accompanied with pooris or chapathis.

Available in 100g,200g and 400g PP Containers.

Nandini curds-Andhra Pradesh and Telangana States

Nandini curd made from pasteurized toned milk. Fresh curd that tastes just like traditional
home made curd. Can be consumed as such or in combination with cooked rice or added as an
ingredient in certain dishes.

35
 Now available in 200g, 500g pouches, 5kg, 10kg bucket in Hyderabad,Secunderabad and
Rangareddy districts of Telangana state and in Medak district of Andhra Pradesh packed by
Hassan Milk Federation.

Also available in Tirupati, Andhra Pradesh in 250g and 500g pouch packed by Bengaluru
Milk Union.

Nandini Curd- Tamil Nadu state

Nandini curd made from pasteurized toned milk. Fresh curd that tastes just like traditional
home made curd. Can be consumed as such or in combination with cooked rice or added as an
ingredient in certain dishes.

Now available in 1kg pouch in Hosur districts of Tamil nadu state and 200g and 500g
pouch available in Chennai packed by Bengaluru Milk Union.
Nandini Buttermilk

Nandini buttermilk is refreshing health drink is made from quality curd and blended with
natural seasoning and condiments to give that enlivening spicy tang of traditional spiced
buttermilk. It promotes health and easy digestion.
Available in 500ml, 1 litre pouches only in D.K Milk Union.

36
GHEE AND BUTTER

Nandini Butter Salted

Creamy Butter with smooth texture and all goodness of fresh pasteurized milk. Enjoy
wholesome nutrition in every spread of butter.

Available in 10g blister, 100g and 500 packs.

Nandini Butter UnSalted

Nandini Pasteurized Unsalted Butter is made from pasteurized cream. Smooth texture,
rich taste and butter some delight. Tasty enough to relish in a variety of ways.

Available in 200g, 500g packs.

Nandini Pasteurized Butter Salted-Blister Pack

Creamy Butter with smooth texture and all goodness of fresh pasteurized milk. Enjoy
wholesome nutrition in every spread of butter.

Available in 10g Blister pack.

37
Nandini Ghee Bag in Box

Nandini Pure Ghee, made from cow’s milk by adopting traditional procedures and
meeting stringent quality standards. A taste of purity. This Special Grade Agmark ghee is quality
assured to make foods, sweet dishes, Kheers and sweets flavoursome and mouth watering.

Available in Bag in Box-500ml, 1 litre.

Nandini Ghee in Pet Jar

Nandini Pure Ghee, made from cow’s milk by adopting traditional procedures and
meeting stringent quality standards. A taste of purity. This Special Grade Agmark ghee is quality
assured to make foods, sweet dishes, Kheers and sweets flavoursome and mouth watering.

Available in Pet Jar-100ml, 200ml, 500ml, 1ltr, 5ltrs

Nandini Ghee in Sachets

Nandini Pure Ghee, made from cow’s milk by adopting traditional procedures and
meeting stringent quality standards. A taste of purity. This Special Grade Agmark ghee is quality
assured to make foods, sweet dishes, Kheers and sweets flavoursome and mouth watering.

38
 Available in Sachets-50ml, 100ml, 200ml, 500ml, 1 liter pouch.

MILK POWDER

Nandini Dairy Whitener

Nandini Dairy Whitener is made from pasteurized fresh whole milk and added sugar.
Processed with ultra modern spray drying technology that makes the whitener completely
miscible in hot or luke warm water, leaving no lumps behind. Dissolve just 3 ½ table spoons full
of Dairy whitener in 180 ml lukewarm water gives you delightful cups of sweetened milk and
tea/coffee prepared will be having the natural richness and goodness of cow’s milk.

Available in 20g, 40g, 200g, 500g and 1kg metalized Aluminium based laminated film,
10 kg HDPE containers.

Nandini Skimmed Milk Powder

Nandini Skimmed Milk Powder is made from pasteurized fresh Skimmed milk by
evaporating and spray drying with agglomerisation process. The easiest way to prepare skimmed
milk is by adding 1 part of the milk powder by volume to 10 parts of water by volume. BIS
Standards confirmation ensures premium quality and best results.

Available in 50g, 100g, 200g, 500g,1kg metalized Aluminium based laminated

film,20 kg Polypack and 25 kg kraft paper bag .

39
Nandini Badam Milk Mix

Nandini Badam Milk Mix can be used with hot or cold milk to prepare delicious
beverage. It contains natural Badam and tastes when used in kheer, kesaribath, ice cream or any
other desserts.

Available in 10g pouch, 200g standy pouch and 500g container.

ICECREAM AND FROZEN DESSERTS

Family Pack Fresh Milk Ice Cream - Butter Scotch

Available in 500ml and 1250ml packs.

Family Pack Fresh Milk Ice Cream – Blackcurrent

Available in 1250ml pack.

40
Family Pack Fresh Milk Ice Cream – Chocolate

Available in 500ml and 1250ml packs.

Family Pack Fresh Milk Ice Cream – Kaju Draksh

Available in 1250ml packs.

Family Pack Fresh Milk Ice Cream – Mango

Available in 500ml and 1250ml packs.

41
Family Pack Fresh Milk Ice Cream – Kesar Pista

Available in 500ml and 1250ml packs.

Family Pack Fresh Milk Ice Cream – Pineapple

Available in 500ml and 1250ml packs.

Family Pack Fresh Milk Ice Cream – Anjir

Available in 1250ml pack.

42
Family Pack Fresh Milk Ice Cream – Vanilla

Available in 500ml and 1000 ml packs.

Family Pack Fresh Milk Ice Cream – Strawberry

Available in 500ml and 1000ml packs.

Magic Frozen Dessert-Vanilla

Available in 5000 ml packs.

43
Magic Frozen Dessert – Strawberry

Available in 5000 ml packs.

MILK SWEETS

Nandini Premium Badam Burfi

The tempting rich taste of real Badam makes this sweet delectable and extra special. It is
made from Badam seeds , khova, sugar and pure ghee.

Available in 250g PP container.

Nandini Premium Cashew Burfi

44
 Burfi with the pleasing richness of real cashew and pure ghee. Nandini cashew burfi has
exquisite taste which leaves lingering taste flavor in the mouth. The most preferred choice of
sweet for all accession.

Available in 250g PP container

Nandini Chocolate Burfi

Nandini Chocolate Burfi is made from Milk solids, Cocoa powder, sugar. Its tastes sweet
chocolaty and rich. Serve a piece of Burfi as a Dessert or sweet accompaniment with your meal.

Available in 250g PP container.

Nandini MysorePak

Karnataka’s traditional sweet and the most favorite choice of all. The appetizing aroma
and taste of pure ghee used in the preparation.

Available in single pack of 25g pouch, 100g, 250g and 500g PP container.

45
Nandini Besan Ladoo

Delicious and mouth watering Besan ladoo for a delectable experience. A perfect sweet
for celebrating cherished moments.

Available in 250g PP container.

Nandini Dry Fruit Burfi

With the goodness of Badam, Pista, Chironji seeds milk solids and sugar. A very rich and
nutritious sweet.

Available in 250g PP container.

Nandini Kunda

Belgaum’s elite caramelized sweet made from milk Khova, sugar syrup.

Available in 250 g Tin with a shelf life of 3 months and 200g in retort pouch with a shelf
life of 6 months.

46
Nandini Dharwad Peda

A sweet speciality from the land of Dharwad. Made from pure milk khova, caramelized
and coated powdered sugar. This exclusive sweet is a favourite of all kannadigas.

Available in 100g and 250g carton packs.

Nandini Milk Peda

Mouth watering Nandini Peda is made from pure milk. One bite is enough to fill the heart
with its creamy milk flavor.

Available in single piece of 25 g, 100g and 250g carton packs.

Nandini Ready to eat Jamoon

Irresistibly smooth and scrumpious Gulab Jamoons prepared using pure ghee and khova.
Sugar syrup makes it lusciously soft, such that it melts in mouth.

47
 Available in 500g sealed tin containers.

Nandini Ready to eat Rossogolla

An indigenous sweet made from fresh whole milk by coagulation process, made into
channa and further into Rossogolla with sugar syrup.

Available in 500g sealed tin containers.

Nandini Bite

The fun sweet that can be enjoyed like a chocolate. Gram flour and corn flour added with
almonds, coco powder , cardamom, ghee and pure milk make this a favourite among the
children.

Available in 15g and 25g sachet.

48
CHOCOLATES

Nandini Chocolates

Nandini chocolates are made with goodness of rich creamy milk & delicious cocoa.
Indulge yourself in exquisite taste of Nandini chocolates and pamper your loved ones.

Available as

• Creamy Bite-19g
• Chitchat/Goodlife-11g
• Eclairs-3.6g

OTHER PRODUCTS

Nandini Cheese

Nandini Cheese is a rich source of Calcium and Milk proteins. Its delicious and
delightful. Available as Processed Cheese Spread and Cheddar Cheese available .

Available in:

• Cheddar Cheese blocks- 200g pouch and 1 kg pouch,

• Processed Cheese - 1kg pouch,
• Cheese spread -Plain 200g Cup, capsicum 200g cup and pepper 200g cup.

49
Nandini Paneer

A fresh nutritive product made by coagulating pure milk. It is excellent source of milk
protein,ideal for vegetarian dishes such as Mutter Paneer , palak paneer, sag paneer and various
other dishes.

Available in 200g,500g and 1 kg pouches.

Nandini Flavored Milk

Sterilized flavored milk , a nutritious and healthy drink and all season drink. Flavored
milk delightful treat available in exciting flavours Badam, Rose, Pista, Banana and Elaichi in 200
ml bottle.

Nandini Diced Paneer

50
 A fresh nutritive product made by coagulating pure milk. It is excellent source of milk
protein,ideal for vegetarian dishes such as Mutter Paneer , palak paneer, sag paneer and various
other dishes.

Available in 180g and 1kg pouch.

51
 CHAPTER -3

ORGANIZATIONAL DESIGN

3.1ORGANISATION CHART

The organization is three tiered on Co-operative principles.

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

ii. District Co-operative Milk Unions at single / multi district level.
iii. 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 organisation objectives.

52
53
 CHAPTER-4

FUNCTIONS AND PROCESSES

4.1 HUMAN RESOURCE MANAGEMENT

Introduction:

Human resource management is a part of management. This part is concerned with the
people and their relationship within an organization.

Definition:

It’s a field of management which has to with planning, organizing, directing and controlling
the functions of procuring developing and maintaining and utilizing the labour force.

Objectives:

Objectives are predetermined goals to which individual or group activity in an organization

is directed.

The objectives are:

1) To employ the skills and abilities of the work force efficiently.

2) To provide the organization with well trained and well motivated employees.
3) To increase the employees satisfaction and self-actualization to the complete
extent.
4) To develop and maintain a quality of work life.

Functions:

1) Assessing and recruiting staff based on the needs specified by the department.
2) Selecting the required candidates as per the requirement by following
predetermined procedures.
3) Enlarging the jobs of the employees if necessary.
4) Describing the jobs by issuing the job chart to employees to carry out the specific
work.

54
House Resource Planning:

All the departments in the KMF according to the requirement of workforce submit a
requisition letter asking for recruiting employees to the corporate human resource management
department. This department analysis the actual need of the employees and then plans how many
employees should be called for interview. In case they have excess of employees then measures
are taken to reduce the number of employees.

Recruitment:

In KMF recruitment is according to the predetermined procedures. Usually they prefer

internal recruitment for top level. In few situations they feel that they need fresh blood they go
for external recruitment. They usually advertise in newspapers.

Selection:

Even the process of selection has to be performed according to the rules and regulations
pre defined. For every one vacant post they select 10 candidates from the available pool of
recruitment candidates for the final selection. These 10 candidates are selected by mainly two
tests :

1) Qualifying Test
2) Written Test

After the candidates cross the 2 tests the best 10 candidates for each post are selected and
sent for the final interview which is an oral interview. In the final interview the required
candidates are selected.

Orientation & Placement:

Here basically whenever a new employee is selected, the supervisor of that particular
division introduces the new employee to the staff and assigns work to the employee. The
supervisors not only assigns work to the employee but also inform him about the procedures to
be followed by him to report to his immediate supervisor, his duties, responsibilities, his rights
and his limitations in the federations.

Training and Development:

In KMF there is a separate unit called as CTI where the employees are trained. The
training period usually lasts for a period of 10-15 days and in which they will be paid a certain
part of the salary.

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 The techniques followed by CTI to train the employees are:

1) Seminars
2) Guest Lectures
3) Case studies etc.

Performance Appraisal and Job Evaluation:

The immediate supervisors appraise their sub ordinates. The supervisors inform the
employees about their conduct in the federation as what they lack, what they excel and what
improvement are to be performed.

Employee Remuneration:

The remuneration for the employee is fixed earlier and all the employees have to abide to
it. This payment increases as their period of service rendered to the federation increases, that is
pay of an employee depends on the number of years he serves the federation.

Incentive Payments:

Employees are paid bonus once in every year depending on profits done on festive
season.

Employee Welfare:

KMF has implemented many methods to help the employees. The employees are given:

1) Pension scheme
2) Group gratuity scheme
3) Group personal accident insurance
4) Group insurance scheme (death of the employee his nominee will
be benefited)

Safety and Health:

The measures followed for the protection of employees are:

1) Conferences, workshops are organized to educate the employees

2) They are given compensation according to the “Workman Compensation Act”
3) Easily availability of first aid box.

Promotion and Transfer:

In KMF the employee can be promoted only if there exists a vacant post or if any one
retires or leaves the organization. Few times employees are promoted on basis of transfers that is

56
if they have an excess of workforce and they need to send that person to a different unit. They
usually transfer that employee to another unit by giving a promotion.

Trade Unions:

KMF does have few trade unions. But none of them are having recognized by the
federation.

Disputes and their Resolution:

KMF has never faced any problem with the trade unions. Whenever any person of the
union approaches the management care is taken to see through that their problem is heard and
solved.

4.2 CENTRAL TRAINING INSTITUTE

Introduction:

It is a unit of KMF came into existence from 1st January 1985 is a nucleus training centre.
CTI is also imparting training in dairy animal management. To women sponsored by Karnataka
state women development co-operation Ltd.

Objectives:

The objectives of its is to import training in different fields of activity to the milk
products who are members of the primary dairy co-operation societies and to the employees of
the members of milk unions and KMF also the staff and representatives of allied govt. depot.

The objective are:

To humble objective of training in the members of the village level co-operative and field
staff undertaking extension works. The objective today is largely oriented towards human
resource department.

Training programs are taken in key areas such as finance, marketing, production and
operation management & technical program.

Mode of training:

1) Who are trainers?

The trainers are usually doctors or highly qualified employed professors.

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 2) Who are the trainees?

Farmers or employees appointed by the KMF

3) What are the techniques of training ?

 Classroom training
 On the job games
 Seminar / Guest lectures
 Role play

Facilities

Conference hall:

The institute has a spacious conference hall, which can accommodate 60 candidates. The
hall is equipped with a glass board and has facilities for using all the audio-visual aids.

Class Room:

In addition to the conference hall there are two class rooms, which have a capacity of
accommodating 25 candidates and have facilities for use of all the audio-visual aids.

Canteen:

A fully equipped canteen facility exclusively for the purpose of the trainers residing at the
hostel.

Transportation:

The institution has 2 mini buses and a jeep for transport of the trainees for visits to
institutions for in plant exposure training.

Recreation:

There are outdoor games like shuttle court ,volley ball court and indoor games like carom
and chess.

Accommodation:

The institution has a hostel that can accommodate 80 trainees at a time. The rooms are
available on train sharing be basis.

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4.3 MANAGEMENT INFORMATION SYSTEM

Introduction:

Management Information system is used to transform data into useful information as

needed to support managerial decision making with structured decisions, which are based on
predictable patterns of activities.

It is a network of communication channels and information processing centre-collecting

information from its respective milk unions and milk units

Objectives:

The objective of an Management Information System is to provide information for decision

making on planning, initiating organizing and controlling the operations of the subsystems of the
firm and to provide a synergistic organization in the process.

1) To update the information about procurement, sales, cost, expenses etc.

2) To collect the information at minimum cost at the right time from the milk unions ,milk units
and chilling centers.

3) To store the data in a convenient pattern which can be retrieved.

Functions:

1) Periodical (daily, weekly, monthly, yearly) collection of data in prescribed formats from all
over 13 milk union and 9 milk units of KMF

2) After collecting the information we consolidate, verify and compile various periodical reports
for various purposes.

3) Submission of various information to government and NDDB and furnishing information to

various organizations, as they needed

4) Development of integrated computerized system.

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4.4 FINANCIAL DEPARTMENT

Introduction:
Finance is the lifeblood of business. Financial Management is that managerial activity
which is concerned with the planning and controlling of the firms financial resources.

Definition:
It is defined as “Planning, organizing, direction and control of financial resources with
the objectives of ensuring optimum utilization of such resources and providing
insurance against through financial deadlock”.

Objectives:
The objectives of KMF are:
 Control the finance
 Minimization of the expenditure.
 Providing services to the member milk unions and its societies and in the process making
profit.
“No Organization can survive without Profit”. Though the objective of the federation is
not to make absolute profit, the profits are incidental to the business.

Functions:
The functions of raising funds, investing them in assets and distributing
returns earned from assets to shareholders are respectively known as financing:

a. Co-ordination with units and member milk union for easy flow of funds.
b. M o n i t o r i n g o f f u n d s a n d i n v e s t m e n t o f s u r p l u s f u n d s g e n e r a t e d
o n a c c o u n t o f operational profits.
c. Passing of all bills like suppliers bills, transportation. Allowance / medical claims
and miscellaneous bills in respect of central office.
d. Coordinating with member milk unions for providing funds and payment of
supply bills in time to avoid cash crunch at the milk unions.

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4.5 PURCHASE DEPARTMENT

Introduction:

Purchase department is also called as “Integrated Materials Management”. It

mainlycontains buying of raw materials, inventory planning, and store keeping and material plan
-ning.

Objectives:

Reduce purchase cost by proper evaluation of vendor (Supplier) by buying

the right material at the right time for the cost with the right supply schedule adherence.
a) Minimize inventory-carrying cost.
b) To reduce ordering cost.
c) Cost reductions checking for economies to profits in buying.
d) Reduce material handling cost.
e) To utilize the input to the most optimum level.

Functions:

1) Purchasing department in central office will purchase bulk materials with buying value
exceeding Rs. 1,00,000 through tenders.
2) 21 items which come under KMF central purchase committee these are mainly the packing
materials, containers and other requirements of pouch film plant.
3) Cattle Feed Raw Materials (CFRM) is mineral mixture items. This mainly comprises of Rice
Bran, Grains, de-oiled cake extraction.

Purchase Process:

Process involved in purchase of raw material. is given below:

Material Purchase Requisition (MRP)

(Submitted by the user department)

Get the quotation from vendors

Prepare Comparative Chart (Of all the vendors)

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 Recommendation from user department

(To choose the best vendors)

Place the order to the vendor

Quotation includes price of the material, validity of the offer, dispatch time, payment
mode of delivery. There are many methods to manage inventory, they are:

a) Always Best Control analysis

b) FSL
c) Economic Order Quantity
d) First in First Out
e) Last in First Out
f) Just in Time

4.6 QUALITY –CONTROL

Introduction:

This division is at apex federation aims at not only controlling the quality but also
development of quality standards from time to time for milk and milk products manufactured
under the brand name “Nandini”. All these products pass through quality standards. The
standards meet the latest quality parameters. They are responsible for inspecting the quality
of raw material used, processing parameters followed and quality of final products.

Activities:

1) Modifications of milk film sachet by reducing length.

2) Implementation of II stage modified ISI formula for calculating SNF in milk.
3) Inspection of the cold storage, deep freezers, dairies and chilling centers.
4) Regularly attending consumer complains.
5) Providing specification for packing materials.
6) Micro bacteriological analysis of milk and milk product.
7) Testing all CPC (Central Purchase Committee) materials.
8) Periodical quality analysis of private dairies.

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4.7 MARKETING MANAGEMENT

Introduction:

Marketing starts with the determination of consumer wants and ends with the satisfaction
of those wants. It is the central activity of the business, which always focuses on
understanding the needs of the consumer. It stimulates the demand for a federation product.

Definition:

Marketing is the process of planning and executing the conceptions, Pricing, promotions
and distribution of ideas, goods and services to create exchanges that satisfy individual and
organizational objectives.

Objective:

The objectives of KMF are as follows:

 Provide quality milk to urban consumers.

 To build village level institutions in cooperative sector to manage the dairy activities.

 Provide assured and remunerative market for the milk produced by the farmer members.

 To ensure provision of milk produced input processing facilities and dissemination of

know how.

Functions:

The functions of KMF are:

 Market the surplus milk and milk products.

 Milk products that are marketed in the marketing system of KMF are skim milk powder
butter and ghee.
 KMF marketing department within itself has made certain divisions for which
a deputy director or an assistant director is been made to look after the division.
 His work is to look after the works to be performed regarding his division by discussing
with his senior officials.

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The divisions made in the marketing system are:

 Liquid milk division

 Retail sale division
 Bulk sale division
 Advertisement and mass media division
 Good life sterilized milk division

a) Liquid Milk Division:

Marketing system for liquid milk is as follows

Milk from Dairies

Agents (Door delivery at dairy cost only Commission paid by the dairy itself)

Consumers

b) Retail Sale Division:

This division function is to market the sales of milk produced in retail division.

c) Bulk Sale Division:

This division function is to sell the milk products left after fulfilling the products for
retail sales. For pricing the products in case of bulk sales a small sub-committee meeting will be
held every week and prices are fixed.

d) Advertisement and Mass Media Division:

This division performs advertising the milk and the milk products to make its publicity.
The different modes used for advertisement are:
• Electronic Media
• Wall Media
• Print Media
• Charts Explaining the products
• All India Radio

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 e) Good life sterilized Milk:

This is newly introduced milk in the market. Hence it requires more advertisement so a
different division is provided.

4.8 MARKETING OF MILK AND ITS PRODUCTS

Milk and its products are sold under ‘Nandini’ brand name, which has become
household name in Karnataka. Nandini’ brand has 35 members of product ranges in its family.
The milk unions are permitted to market the products within their jurisdiction through their milk
agents / parlors. The federation distributes the products of milk unions by establishing network
and sales depots in Bangalore, Hubli, Mangalore and Tirupathi comprising of 110 wholesale
dealers spread across, Karnataka, Andhra Pradesh, Tamil Nadu states of India and catering
around 20,000 retail outlets once a week.

The activities also include:

Introduction of new products, its price fixation and packing size, PackingDesigns,
Advertising plans Campaigns are undertaken by marketing division providing. Advertisement
materials,organization of workshops / seminar to improve the quality of the products is another
important function of marketing division. The many variants of Nandini- Nandini is Ubiquitous
Milk is marketed under Nandini in different types as:
Toned, Homogenized Toned, Double Toned, Standardized, Full cream, Shubham Milk

UHT milk is being marketed in 4 variants via:

• Nandini Good life with 3.5% fat and 8.5% SNF.

• Nandini Smart with 1.5% fat & 9% SNF
•Nandini Good life slim with 0.5% fat & 9%

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4.9 MARKETING DISTRIBUTION CHANNELS

Distribution – introduction:

Distribution (or "Place") is the fourth traditional element of the marketing mix. The
other three are Product, Price and Promotion.

The Nature of Distribution Channels:

Most businesses use third parties or intermediaries to bring their products to market. They
try to build a "distribution channel" which can be defined as

All the organisations through which a product must pass between its point of production
and consumption"

Why does a business give the job of selling its products to intermediaries? After all, using
intermediaries’ means giving up some control over how products are sold and who they are sold
to. The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling.
They have the contacts, experience and scale of operation which means that greater sales can be
achieved than if the producing business tried running a sales operation itself.

Functions of a Distribution Channel:

The main function of a distribution channel is to provide a link between production and
consumption. Organisations that form any particular distribution channel perform many key
functions:

Information:

Gathering and distributing market research and intelligence – important for marketing
planning

Promotion:

Developing and spreading communications about offers

Contact:

Finding and communicating with prospective buyers.

Matching:

Adjusting the offer to fit a buyer's needs, including grading, assembling and packaging.

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Negotiation:

Reaching agreement on price and other terms of the offer.

Physical distribution:

Transporting and storing goods.

Financing:

Acquiring and using funds to cover the costs of the distribution channel.

Risk taking:

Assuming some commercial risks by operating the channel (e.g.holding stock)All of the
above functions need to be undertaken in any market. The question is - who performs them and
how many levels there need to be in the distribution channel in order to make it cost effective.

Numbers of Distribution Channel Levels:

Each layer of marketing intermediaries that performs some work in bringing the product
to its final buyer is a "channel level". The figure below shows some examples of channel levels
for consumer marketing channels:

FIG 4.1

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In the figure above, Channel 1 is called a "direct-marketing" channel, since it has no
intermediary levels. In this case the manufacturer sells directly to customers. An example of a
direct marketing channel would be a factory outlet store. Many holiday companies also market
direct to consumers, bypassing a traditional retail intermediary - the travel agent. The remaining
channels are "indirect-marketing channels".

Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The
consumer goods market in the sell their goods directly to large retailers which then sell the goods
to the final consumers.

Channel 3 contains two intermediary levels a wholesaler and a retailer. A wholesaler typically
buys and stores large quantities of several producers’ goods and then breaks into the bulk
deliveries to supply retailers with smaller quantities. For small retailers with limited order
quantities, the use of wholesalers makes economic sense. This arrangement tends to work best
where the retail channel is fragmented i.e. not dominated by a small number of large, powerful
retailers who have an incentive to cut out the wholesaler.

FIG 4.2

RETAILING

Retail positioning:

There are several ways in which retail stores can position themselves. One strategy
involves low-cost, low-service. On the opposite side of the spectrum, others may offer high-cost-

68
high-service. Generally, having a clear strategy and position tends to be more effective since
"average" stores tend to face a greater scope of competition

Margins:

Stores need to maximize their profits and must consider their margins to do so. Gross
margins generally reflect the difference between what a store pays the retailer and what it
charges the customer. On the average, this difference in supermarkets is about 25%.(Although
there are large differences between product categories, as an illustration, a can that sold for 1.00
might have been bought on wholesale for 0.75).

Net margins, in contrast, take into account the allocated costs of running the store wages,
rent, utilities, insurance, and "shrinkage." In grocery stores, these margins are usually less than
5%. Margins can be considered at the unit level you make 0.35 on a package of salt or as a
percentage of sales 35% if the salt sold for 1.00. Sometimes, it may also be useful to consider
margins per unit of space to best allocate retail space to different categories. There are two
theoretical forms of retailing. The "High-Low" method involves selling products at high prices
most of the time but occasionally having significant sales. In contrast, the "everyday low price"
(EDLP) strategy involves lower prices all the time but no sales. In practice, there are few if any
EDLP stores most stores put a large amount of merchandise on sale much of the time. It has been
found that offering lower everyday prices requires a very large increase in sales volume to be
profitable.

Increasing power of retailers:

As more and more products compete for space in supermarkets, retailers have gained an
increasing power to determine what is "in" and what is "out." This means that they can often
"hold out" for better prices and other "concessions" such as advertising support and fixtures. A
significant trend in recent years has been toward manufacturers’ "private
label" brandsthat is, the retailers' own brands competing against the national ones. For example,
Del Monte peas may now have to compete against Ralph’s brand of peas in those stores.
Although private label brands sell for lower prices than national brands, margins are greater for
retailers because costs are lower. For example, it is more profitable to sell a can of peas 1.00
when it cost 0.60 to supply than it is to sell a name brand can at1.25 when that cost 1.05 at
wholesale.

"Power" and "category killer" retailers:

A number of retailers have become a great deal more efficient in recent years than has
been traditional in the industry. Firms like Wal-Mart have invested greatly in information
technology and logistics and have committed to taking a risk on placing large orders placed well
in advance of the need. These stores have frequently attracted a large customer base by charging
consistent low prices. The philosophy here is to make a little bit of profit on each thing sold and

69
then selling a great deal. A special case is the "category killer"
which focuses on a specific product
categorye.g., Circuit City buys up very largevolumes of electronics and thus can bargain for low
prices from manufacturers.Manufacturers get the benefit of large, consistent orders, but must in t
urn offer exceptionally low prices or risk having business shifted to other brands. Note that
in practice, the category killer tends to carry a large variety of brands, buying a large volume of
each. Thus, the mere threat of switching to other brands is enough to get a concession from each
brand.

Retailing polarity:

A number of retailers have tended to go to one extreme or the other either toward a great
emphasis on price or a move toward higher service. Rapid economic growth has made high
service retailers more attractive to a growing number of affluent consumers and less affluent
consumers have become more accustomed to intense price competition between different
retailers.

Distribution opportunities:

First of all, we must consider what is realistically available to each firm.A small
manufacturer of potato chips would like to be available in grocery stores nationally, but this may
not be realistic. We need to consider, then, both who will be willing to carry our products and
whom we would actually like to carry them. In general, for convenience products, intense
distribution is desirable, but only brands that have a certain amount of power e.g., an established
brand name can hope to gain national intense distribution. Note that for convenience goods,
intense distribution is less likely to harm the brand image it is not a problem, for example, for
Haagen Dazs to be available in a convenience store along with bargain brands it is expected that
people will not travel much for these products, so they should be available anywhere the
consumer demands them. However, in the category of shopping goods, having Rolex watches
sold in discount stores would be undesirable here, consumers do travel, and goods are evaluated
by customers to some extent based on the surrounding merchandise.

The product life cycle:

In general, a brand can expect lesser distribution in its early stages fewer retailers are
motivated to carry it. Similarly, when a product category is new, it will be available in fewer
stores e.g., in the early days, computer disks were available only in specialty stores, but now they
can be found in supermarkets and convenience stores as well. Certain products that are not well
established may have to get their start on "infomercials," only slowly getting entry into other
types out outlets. (Please see PowerPoint chart).

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Collaboration with local NGO's

The self-help groups have been appointed as our agents for selling milk in the areas
of Gulbarga and Shimoga Milk Unions. In addition to sale of milk, the said self-help groups have
been entrusted with the task of taking up door-to-door campaign with regard
tonutritional aspects of milk, the health hazards involved in consuming non- pasteurized/loose
milk. This has helped in bringing awareness among the women, children and also in increasing
the sale of nandini milk in those areas.

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 CHAPTER-5

5.1 FINDINGS FROM CUSTOMERS

➢There is 100% of the respondents are aware of Nandini brand

➢96 % of the respondents have observed the advertisements of Nandini Milk

andMilk products. Among 80% respondents who have observed theadvertisements, (80%) feel
that the advertisements were informatory.

➢Quality was given more importance with 72%, and then the next importance
isgiven for Availability with 20% response. thickness comes next with 08%,where as the fat
content carries very less importance with purchasing milk and milk products

➢ Nandini Shubham milk carries highest of 54% of awareness, the next isStandard Milk which
carries the 24% of awareness.

RETAILERS:

These are the question which denotes the nandini whole and sole picture about its product
and its quality as well as services provided by nandini and its distributors.

➢ According to my findings in survey area there are 96% of retailer are fully satisfied with the
quality of products and remaining 4% retailers are not satisfied with the quality of the product.

➢ There are 76% retailers who are satisfied with the quality services provided by the distributors
but there are 24% of the retailers who are not satisfied with the services provided by
the distributors

➢ Customer are demanding Nandini product but there are no distributor provided to some shop,
so they have to sale other brand.

➢ Sometimes distributor delivers product when exp date comes to close.

➢ This retailer wants to sale nandini product but there is no distributor them.

➢ Replacement is not done if product rotten.

➢ According to my findings in survey area there are 86% retailers who are satisfied with the way
the product are being delivered by distributors but there are 14% retailer who are not satisfied
with the way the product are delivered to them. The remaining 14% retailers facing the problems
as follows:

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 There are no distributor allotted to the retailers in some backward area

➢ There are many suggestion given by retailers are as follows.

➢ Quality of Nandini is very good.

➢ Increase number of distributors for catering good service.

➢ Provide Nandini milk and milk product delivery in time and in enough quantity

➢ Provide replacement if product is rotten before expired date.

➢ Increase some margin in profit.

5.2 RECOMMENDATIONS

➢ Nandini is not providing good margin compare to the other brand in spite of retailer have to
sale Nandini products because customers are very brand loyal.

➢ Provide replacement if product is being rotten before expired date.

➢ Nandini should concentrate on pause area as well as backward area too

➢ Nandini should provide some scheme as other company is providing.

➢ The company should also look in to consumer’s relationship management. A growing

trend by which the company can succeed in winning customers confidence and satisfaction.

➢ The company needs to have a constant touch and communication with the consumers and
continuously needs. To get feedback from them and make necessary arrangements and
corrections to cater the needs of customers.

➢ In many areas there are no Nandini parlors, or dairy. Counters etc., it is better to open the
counters or parlors, in order to provide milk to the consumers to provide for availability of
Nandini products, in all areas.

5.3 CONCLUSION

The result is observed and achieved during the project clearly indicate the importance and
need of customer satisfaction. Marketing is the dynamic discipline it also versatile in nature ,
customer is a key for any company. In today’s competitive world each and every company is
facing the competition and to survive in this competitive world. The company should attract
more consumers by giving quality products and should satisfy their needs and demands.

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 The study reveals that the customer satisfaction helps the organization to understand the
satisfaction level of consumers and achieve their goals. Categorically speaking from the obvious
that satisfaction has powerful influence in customer loyalty of products and services rendered in
business organization. The company has to design promotional programs effectively for
awareness, quality, price, and service, so that it will have greater effect to capture the market
share of the dairy industry.

Nandini has a very good image in the eye of its customer, has a very good brand name.
But one thing I come to know that its distribution channels in not good in some wards
and because of which retailers has to face many problem. The price of nandini product is high as
compare to its competitor product and hence nandini competitors are able to attract consumer
towards their product. Another thing is that nandini don’t give the replacement offers to the
retailers and because of which retailers are very much dissatisfied.

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 BIBLIOGRAPHY

1) TEXT BOOK AUTHOR

Marketing Management Philip Kotler

Essentials of Marketing Aswathappa

2) WEBSITES

www.kmfnandini.com

www.kmfnandini.coop

www.wikipedia.com

www.scribd.com

3) KMF Brochure

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