HISTORY

Today India is the worlds largest milk producer which overtook US in 1998 which accounts for 17% of the global output. According to the research firm CLSA, milk is the countrys biggest agricultural produce, contributing 22% to agricultural GDP. The annual growth rate of milk production in India is 5% to 6%, against the world at 2%. This rapid growth was largely credited to the contribution by dairy co-operatives, under the Operation Flood (OF) Project, assisted by many multi- lateral agencies, including the European Union, the World Bank, FAO and WFP (World Food Program). National Dairy Development Board (NDDB) lays down the rules and regulations to be followed by the various co-operative milk societies. AMUL (Anand Milk Union Limited) was a pioneer in starting a co-operative milk producers society in 1946 in Gujarat and thereafter many co-operative societies were started. In 1975 the World Bank gave a credit of Rs.78 crores for starting another co-operative society. An overwhelming 85% of the over Rs 2,00,000 crore dairy sector, which sustains about 80 million families across rural India, falls under the unorganized sector. The rest includes private dairies, co-operative societies and government dairies.

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

Quality Policy
We continuously strive to improve our quality and operating system by educating and motivating producers and work force to achieve customer satisfaction both producers and consumers.

Quality Rule
Every job / operation will be done by everyone in the right time and right at first time for customer satisfaction.

MILESTONE OF THE COMPANY

1987 Bifurcation of the district from an operational area of Bangalore Milk Union Ltd to form a separate milk union. 1987 Establishment of First Women Dairy Co-operative Society in the union. 1989 Inauguration of Sadali chilling centre. 1990 Initiation of milk marketing at inter-dairy rate. 1991 Inauguration of Gowribidnur chilling centre. 1991 KMF handed over chilling centres of Kolar, Chintamani and Gowribidnur to Kolar Milk Union Ltd. 1994 Inauguration of full-fledged dairy at Kolar with a processing capacity of 1.0 lakh litre per day. 1994 Union started milk marketing under the brand name NANDINI in Polythene packets. 1995 Inauguration of Administrative building in the dairy campus. 1998 Inauguration of Cheese plant. 1999 Union started marketing Nandini Good life Milk. 2000 Expansion of marketing goods to Chennai. 2001 Inauguration of BMC centres in the jurisdiction of KCMUL (first time in the history of Karnataka) 2001 Kolar Dairy was certified ISO-9002 for Quality Management System. 2001 Union started marketing Masti Dahi. 2001 Expansion of Tetrapak unit. 2003 Union bagged National Productivity Council Award 2nd Place in both 2003 and 2004. 2005 Inauguration of 100th BMC centre in the jurisdiction of KCMUL.
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 2006 Union Bagged best Co-operative union award in the state. 2007 Establishment of producers Welfare Trust. 2008 The union was renamed as Kolar-Chikkaballapura Co-operative Milk Producers Societies Union Limited. 2008 Union started to export Good life milk to Singapore with a shelf life of 1 year and also started to supply to INDIAN ARMY. The union also received Energy Conservation Award from both central and state government. 2009 Introduced Good life milk in 200ml fino packets to market and also launched new variant milk called SAMPOORNA. 2010 Increased the packing capacity of UHT plant to 2.5 lakh litres per day. 2011 Union recorded highest milk procurement of 8,00,000 litres. 2012 Union registered the highest milk sales of 2,50,000 litres and milk procurement of 8,50,000 litres.

List of Co-operative Milk Producers under Karnataka Milk Federation

1. Kolar-Chikkaballapura Milk Union 2. Bangalore Milk Union 3. Mandya Milk Union 4. Mysore Milk Union 5. Hassan Milk Union 6. Belgaum Milk Union 7. Shimoga Milk Union 8. Tumkur Milk Union 9. Gulbarga Milk Union

10. Dharwad Milk Union 11. Dakshina Kannada Milk Union 12. Bijapur Milk Union 13. Bellary Milk Union Bangalore Dairy, a joint venture of UNICEF, Government of India and Government of Karnataka was dedicated to the people of Karnataka on 23rd January 1965 by the then Honourable Prime Minister Late Shri Lal Bahadur Shastriji. Sprawling over an area of 52 acres, the Dairy had an initial capacity to process 50,000 litres of Milk per day. This dairy was handed over to the Karnataka Dairy Development Corporation (KDDC) in December 1975 as a part of Rural Milk Scheme of Mysore, Hassan and Kudige under Operation Flood-II and then transferred to Karnataka Milk Federation (KMF) in May 1984 as a successor of SDDC.

EVOLUTION OF KARNATAKA MILK FEDERATION

Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13 Milk Unions in the state and thus forming the state level apex organization. As a Co-Operative apex body of the state of Karnataka, it represents dairy farmers organization and also implements dairy development activities. The main objectives of KMF is To build village level institutions in co-operative sectors to manage the dairy activities. To ensure provision of milk production inputs, processing facilities. Provides assurance and remunerative market for the milk produced by the farmer members. To facilitate rural development by providing opportunities for self-employment at village level, preventing migration to urban areas, introducing cash economy and opportunity for steady income. Provide quality milk to consumers.

Company at a glance
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Kolar-Chikkaballapura District Co-operative Milk Producers Union is registered under Cooperative Societies act after bifurcation from Bangalore District Co-operative Milk Producers Union on 23/03/1987. Dairy development activity in the district was initiated during the year 1975 under IDA assistance as a part of Kolar Milk Union Limited (KOMUL). Subsequently the district was bifurcated from the operational area of KCMUL to form a separate Milk union which effected from 01-04-1987. The area of operation is restricted to Kolar and Chikkaballapura Districts having 2919 villages of 11 revenue Taluks. KCMUL is certified for ISO 9001-2000 for quality

management and Food Safety Systems.. The Kolar union has a Milk processing plant at Kolar with a handling capacity of 2,50,000 liters per day and three chilling centers at Chintamani, Gowribidnur and Sadali With handling capacity of 1,00,000 liters per day respectively. At Kolar, the dairy is manufacturing Butter, Ghee, Peda, Curd, Cheese, Masala Butter Milk, AMUL masti. UHT Milk in addition with pasteurized toned Milk and full cream Milk. UHT Milk is being sold under the brand name Nandini, Good Life, and Nandini Smart while all other products are sold under the brand name of Nandini. The union started marketing of liquid Milk in polythene sachets in entire Kolar district and in a part of Bangalore city since 1994.

DAIRY CO-OPERATION SOCIETIES [DCS]

Dairy Co-operative society is a basic organization unit functioning at the village level that is organized on the co-operative principles. All milk cattle owners are eligible to become members of the dairy co-operative societies. The DCS functions daily and also acts as marketing outlet for the milk procured in the village. KCMUL comprises of 11 Taluks with a total of 5309 revenue villages and 1732 Dairy co-operative societies out of which 79 are Women Dairy Co-operative Societies. There are more than 3 lakh members registered in the society in which only 84,639 members are supplying milk to the society from both Kolar and Chikkaballapura district and the rest are sleeping members. These members are divided into various categories like

Particulars Small Farmers Marginal Farmers Agricultural Laborers

Members 30,207 31,349 15,307

Others TOTAL In this, Schedule Caste Members Schedule Tribe Members

7,776 84,639 13,415 7,968

MILK FEDERATION
The Karnataka Co-operative Milk producers Federation Ltd. came into existence on 0105-1984, by federating the milk unions in the state and thus forming the state level apex organization. The federation is implementing the project activities and the surplus milk products are converted to produce and supply centralized inputs. The main responsibility of KMF is to co-ordinate the activities between the unions and also to develop the market by increasing the milk production. The federation will manage the surplus and deficiency of Liquid milk among the member milk unions. However, the federation organizes marketing of produced products. The major quantity of the procured milk is sold as liquid milk and the rest will be used for the production of other goods like Butter, Ghee, Peda, Flavoured milk, Burfi, Paneer, Cheese, Khoa, Jamoon Mix, Jamoons, Mysorepak, Badam powder, UHT milk and Ice-creams. The federation organizes marketing of liquid milk and products outside the state. Excellence in quality is maintained to lay a solid foundation for widespread acceptance of Nandini Milk Products.

Clean Milk Production Programme

Under Clean Milk Production Program Union has commissioned 138 Bulk Milk Coolers at identified primary MPCS through which they are procuring 3 Lakh Kgs of Milk Every Day. Apart from this at present they have 60 functioning Milking Machines and 506 Automatic Milk Collections Units to procure good quality milk

Women empowerment programme - STEP

The program of STEP advocates the objective of providing training for up grading the skills and to provide sustainable employment for women, through a variety of actionoriented projects, which employ women in large number. The scheme covers 8 traditional sectors of employment. Dairying and Animal Husbandry is one such sector, which gives sustainable employment and income. At the end of February 2012 Kolar Union had 79 exclusive Women Dairy Co-operative Societies.

THE OVERVIEW OF THE COMPANY

Particulars PROCUREMENTS AND INPUTS

Inhabited villages Milk Producer Members Milk procurement Routes Artificial insemination Centres

Total

2,919 84,639 121 322

PROCESSING PLANT CAPACITY

Kolar dairy Gowribidnur Chilling Centre Sadali
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3,00,000 litres/day 1,20,000 litres/day 1,20,000 litres/day

Chintamani

1,60,000 litres/day

MARKETING AND SALES

Agents Parlours No. of District Routes Everyday Milk Sales Credit Institutions 486 23 11 2,50,000 litres/day 25

FINANCE as on March 2012

Share Capital Annual Turnover Profit Average Procurement 28.09 crores 664 crores 1.95 crores 8,50,000 litres/day

ORGANIZATION CHART

PROCUREMENT & INPUTS DEPARTMENT

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Managing director

General Manager

Manager

Deputy Manager

Deputy Manager Systems

Extension Manager (EO-I) / Senior Superintend

EO-II /AA-I / Senior Steno

AA-II / Sr. Typist / Steno

AA-III / Mobile Veterinary assistant

Peons / Helpers

MILK PROCUREMENT
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The operational efficiency is reflected on the prices paid to the member producers. KOMUL is offering the best remunerative to milk producers. At present they pay Rs. 21.11 / KG for MPCS and Rs. 20.40 / kg for the producers. The present average milk procurement is 8.5 lakh liters per day and they are used as below. PARTICULARS Milk sachets Curd UHT (Good Life) Mother dairy Remaining is used for Butter, Ghee and stock and Surplus is converted to powder TOTAL LITERS 2,50,000 25,000 2,50,000 1,80,000 1,45,000 8,50,000

The company has achieved a tremendous progress in collecting the milk from the producers. The company is paying the amount in cash to producers in a weekly basis; on an average the company pays 10-12 crores to producers. Milk collected at DCS will be transported to chilling centres through 121 milk procurement Routes, by traveling 12.650 KM`s every day. A minimum of 250-300 litres of milk should be given by every DCS. It is a rule that no two DCS`s should be located within 3 km radius of any place. At every DCS centre one secretary and one tester will be appointed. The secretary collects the milk from the farmers and the tester checks whether the FAT and SNF contents in the milk are up to the required standards. KCMUL implemented many scheme like Clean Milk Production with the motto of Pure & Fresh Milk Cow to the consumers. Under this program, installation of Bulk Milk Coolers, Automatic Milk Collection Units, Electronic Weighing Scales etc., will be installed at every DCS level to minimize human effort in the process of milk collection. Then the milk is transported from the societies to the chilling centres within 4-5 hours then the cooling will be done at 4o Celsius, then the chilled milk is transferred to Mega dairy from the chilling centres within another 4-5 hours. Then the processed milk is tested in the laboratory again and then will be packed accordingly and then it will be stored in the storage room and finally it will be distributed to the dealers/agents.

PRODUCTION DEPARTMENT
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Managing director

.
General Manager

Manager (PRD)

Deputy Manager

Assistant Manager

Technical officer/Dairy Technologist

Dairy operator-I

Dairy operator-II

Dairy operator-III

Dairy operator-IV

Peons/Helpers

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Production department is the most important and the largest department in the organization. The production department in the Kolar dairy performs the function at its best by transferring the raw materials like milk and machine in to specified outputs like Curd, Butter, Ghee, Masala Butter Milk, Peda, Cheese, Masti Dahi, Good Life and milk sachets in assigned best quality in order to achieve the organization goals successfully. The Production manager heads the production department and organises well by having a specific plan for each day and executes and controls all the production activities with the help of assistants and dairy operators. It is totally a computerized system of production where the human resource required is very less. The main work of the production department is To maintain the quality of the milk at all levels. To execute, co-ordinate, organize and monitor the production activities. To increase the output as per the demand. To Decrease the cost of production and wastage in the production process as much as possible. Finally to ensure that the production meets the planned requirements. The production will be done all 24 hours a day and 365 days in a year. The production works through 3 shifts and 2 general shifts.

Shifts
1st 2nd 3rd MORNING (GENERAL) EVENING (GENERAL)

Timings
06 AM 02 PM 02 PM 10 PM 10 PM 06 AM 09 AM 05 PM 10 PM 06 AM

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PRODUCTS PRODUCED AT KOLAR

Each product will be produced with different quantities. Particulars Milk UHT (Good Life) Curd Masala Butter milk Cheese Ghee Peda Production/ day 2,50,000 litres 2,50,000 litres 25,000 litres 2000 litres 2000 kgs 6000 litres 40 kgs No. of machines used 25 5 2 2 1 4 1

PRODUCT PROFILE
TONED MILK Fresh and pure Milk available in 250ml, 500mll and 1 litre packs. Better to be used within a day from the date of packets. It contains 3% fat and 8.5% SNF.

HOMOGENIZED TONED MILK This Milk is consistent right through; it gives you more cups of tea or coffee and is easily digestible. This is available in 500ml, 1 litre and 5 litre packets.

CURDS Nandini curds are made out of pure Milk. It is thick and delicious, giving all the goodness of homemade curds. It is available in 200gms and 500gms packets.

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 BUTTER Rich smooth and delicious, Nandini butter is made out of fresh pasteurized Milk cream. Any preparations made from this will be a delicious treat. It is available in 100gms (salted), 200gms and 500gms cartons both salted and unsalted. GHEE Nandini ghee is made from pure butter. It is fresh and pure with a delicious flavour. Hygienically manufactured and packed in a special pack to retain the goodness of pure ghee and to have a Shelf life of 6 months at ambient temperature. This is available in 200ml, 500ml, 1-liter sachets, 5-liter tins and 15kg tins. Kolar dairy sells 380 tonnes of ghee to TIRUMALA every year.

FULL CREAM MILK The full cream pure milk which containing 6% fat and 8% SNF is rich, creamer and tastier milk. It is ideal for preparing home-made sweets and savouries. It is available in 500 ml, and 1 litre packets.

MASALA BUTTERMILK Masala buttermilk is manufactured and sold in the summer season, especially from the month of March to July, the only period during which it gets demand. On an average the sales exceeds to more than 1000 Litres per day in 250 ml sachets.

CHEESE Cheese plant was started in the union in 1997 at cost of Rs.3.5 Crores. At present cheddar cheese in produced from cow milk and refined at controlled relative humidity and temperature for one month of two years. Cheese refined to various length of time will be blended and processed to obtain processed cheese.

PEDA Kolar dairy produce Peda which is made from pure milk kova which is very delicious sweet and which can be eaten by a child to an old man.

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 AMUL MASTI DAHI Recently Kolar dairy was taken up the production of AMUL Masti-Dahi in polythene cups of units of 200gms and 400gms. The Milk is used for Masti-Dahi preparation consists of 4.7% of fat and 11% of SNF added with lactic stator culture. Gujarat Co-operative Milk Marketing Federation (G.C.M.M.F) is marketing this product. KOMUL had set high standards for its products and customer services, its prior reliance on manual operations made it difficult to keep up with surging demand. In designing the Mega Dairy, Komul looked towards an automated system that would allow it to maintain consistent in quality production of each product. Energy and power is the major requirements which is used effectively and controlled properly all over the plant. Employees are given training effectively to use the new automated systems and to update the valuable management information which is collected from the respective departments. Mega Dairy has a capacity to process 8.5 lakh litres of Milk per day. This Dairy has been built by investing Rs.35.70crores obtained as a term loan from National Dairy Development Board. At present the mega dairy is working with the concept of State-ofthe-art with the help of available technology where the Union has the ability to manufacture Milk and milk products to world-class standards which ultimately helps the consumers at the end. Milk and Milk products now reaches the market faster, at a higher quality and with a longer shelf life.

UHT MILK DIVISION (GOOD LIFE) UHT refers to Ultra-High Temperature heat-treated Milk. The concept of UHT milk is to produce the milk at highest quality i.e. bacteria free which retains the nutritional quality of the milk. In this process milk is exposed to a temperature of 137c for 4 sec and immediately cooled at room temperature this process is called as sterilization. The technology of packing UHT milk is provided by Tetra Pack Company and also the raw materials required for the production is supplied by Tetra Pack Company. The packing material consists of 6 layers i.e. 3 layers of Polythene, 1 layer of Aluminium and 2 layers of Paper which helps to prevents the enter of air, water, light and bacteria there by
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keeping the Milk at high quality. The company follows the six sigma in UHT division where there is less than one defect out of ten lakhs products, this has been achieved in UHT Milk due to good quality of initial raw Milk.

UHT PRODUCTS
At present four varieties of UHT products are produced GOOD LIFE This is made from pure milk with bacteria free in tamper proof tetra-fino pack this helps to keep the milk fresh for 60 days without refrigeration until opened. It contains 3.6% FAT and 8.63% SNF. It has sales all over India and also exports to Singapore. It sells 80 lakh litres of good life per day to Indian Military. SMART This is made from cows pure milk. It is Homogenized and Double toned milk with bacteria free and packed in tamper proof tetra-fino packs with the life of 60 days for 500 ml brick pack and 180 days for 1000 ml brick pack. It contains 3.6% of FAT and 11.50% of SNF. SLIM This is also made from cows pure milk. It is Homogenized and skimmed milk with bacteria free and packed in tamper proof tetra-fino packs with the life of 60 days for 500 ml brick pack and 180 days for 1000 ml brick pack. This skimmed milk is 99.5% fat free. It contains 0.5% FAT and 9.17% SNF. SAMPOORNA This is standardized milk. It is Homogenized and skimmed milk with bacteria free and packed in tamper proof tetra-fino packs with the life of 60 days for 500 ml brick pack and 180 days for 1000 ml brick pack. It is also 100% pure Pasteurized milk. This is more fat content milk which is very tastier than other products. It contains 4.5% FAT and 8.5% SNF.

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COMPETITORS
There are more than 125 companies engaged in the production of milk in Karnataka. As we know that Kolar is located at the border of Andhra Pradesh and Tamilnadu. It faces huge competition as both the state products are entered in to the local markets. The main competitors are: HERITAGE KCA SHRUTHI SWASTIC GOLD FIELD DIARY PLUS NILGIRIS AROGYA TIRUMALA SRI LAKSHMI etc.,

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ADMINISTRATION DEPARTMENT

Managing director

General Manager

Deputy Manager

PS/TO/PRO/AO/OM/LO

Superintendent AA-I

AA II/STENO/SR.TYPIST

AA III
Peons / Helpers

PS Personal secretary TO Time officer PRO Public relation officer AO Administrative officer OM Office manager LO Labour officer

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The administrative manager leads the department; he works under the general manager. The administrative department in KCMUL holds all the office work in the company. The hierarchy in this department is that the Administrative Manager reports to the General Manager and then the General Manager reports to the Managing Director who is the chief of Administration Department.

FUNCTIONS OF THE ADMINISTRATIVE DEPARTMENT

The main function of the administrative department is concerned with the following. Employees attendance. Sanction of increments. Promotions. Transfer. Disciplinary action against misbehaviour of employees. Termination and retirement. To follow the policies and principles laid down by the top management. Recruitment and performance appraisal etc.,

FACILITIES PROVIDED TO EMPLOYEES OF KOMUL

Training is provided to all officers and employees in their respective fields, conducted at KMF and NDDB Erode/Gujarat, etc. The main aim of giving training is to gain knowledge and experience in their work, which is helpful to the employees and to the organization. Canteen facilities are provided at very less rate ( meal @ Rs. 8 for the employers and the labourers and Rs.15 for the visitors) Conveyance allowance is given to all employees. Shift allowance is provided to the employees who work in shifts in respective places. Salary of Rs. 180 is paid to the contract labourers on daily basis. The following leave facilities are provided: 30 days earned leave (EL) in a year. 15 days casual leave in a year. Every month second Saturday is holiday for the employees.
Half pay leave for 20 days in a year. 20

MARKETING DEPARTMENT

Managing director

General Manager

Manager

Deputy Manager

Technical officer

Marketing officers

Senior/Milk Dispatches

Computer Operators

Peons/Helpers

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KCMUL has a well-established marketing department. Marketing manager and deputy manager takes in charge of all marketing and sales of milk and milk products. He takes responsible in setting the targets and framing the plans and policies to achieve the targets and also takes responsibility in forecasting the demand for their products in the market. The company only have the authority and power to sell its product but the responsibility of marketing the company products will be taken by the KMF. KCMUL sells its milk and milk products under the corporate brand name of NANDINI within and outside the state. The main functions of the Marketing Department are; The Selection of agents and calling tenders for setting up of the parlours. Dispatch of the indented supplies to the channel members. Distribution of milk and milk products to local areas and district areas in its jurisdiction. To supply in time the quality milk to customers. Improving the consumer satisfaction index Meeting the needs of the channel members.

The company has taken few promotional activities to improve the sales like Distribution of glow sign boards, Caps, T-shirts and Bags to the agents. Wall paintings, Painting of insulated distribution transport vehicles. Advertising on local cable network through TV by using celebrities. Providing sponsorship, Distributing calendars, and Consumer greetings etc.

MARKETING STRATEGY OF KOMUL Make the Nandini milk and milk products available in time and in enough quantity throughout the day at customers convenient places to avoid competition. Improve the quality of service provided to channel members and also to motivate them to improve their sales. Prompt consumers complaint redressal. Strengthening the brand and trust with the customers. Apart from this they are strengthening their infrastructure and with new equipment to provide all the facilities at all unions of the state.
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RETAIL SALES OF MILK AND MILK PRODUCTS

Particulars Milk UHT (Good Life) Curd Masala Butter milk Cheese Ghee Peda Sales/day 2,50,000 litres 2,00,000 litres 25,000 litres 2,000 litres 2,000 kgs 6,000 litres 40 kgs

DISTRIBUTION SYSTEM
Manufacturer Retailer (Agent, Dealer)

Customer

Milk and milk products have been distributed twice a day that is in the morning and in the evening. The distribution routes are allotted on the basis of the quantity of milk or the number of crates ordered by the agents in each geographical area. At present there are 486 milk selling agents and 11 district routes that are operating for the distribution of milk and milk products to the public. Agents are appointed on the basis of organizational norms. The agents are placed at minimum distance of place from each other. Initially the pay Rs.10,200 to become an agent and the member of the company. Then they can order for the quantity of goods they require. The payment for the products should be made on the time of delivery in cash or in cheque. No credit facility is provided to the agents.
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FINANCE DEPARTMENT

Managing director

General Manager

Manager

Deputy Manager

Assistant Manager

Accounts officer

Superintendent

AA-I

AA-II

Peons /Helpers

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Finance department is very important department in all organizations because it helps in smooth functioning of other departments in the organization. It has to take decisions in the matters like Where to invest? How much to invest? When to invest? What is ROI? It should take care on the payments to the milk suppliers, employees and the labourers and the receipts of cash from the sales. Finance department helps in smooth functioning of other departments in the organization. The main functions of the department is to Preparation of financial reports. Preparation of annual budgets and budgetary controls. Scrutinizing of purchase bills, proposals and passing of all payment bills. Maintenance of sales ledger and subsidiary books like cashbook, debtors, and salary register. Preparation of cost sheet etc. The company has their own Auditors and take care of the financial data. The KCMUL is in a good financial position with a turnover of 664 crores in the year 2011-12 and makes a profit of more than 1.95crores. The sales and profits are drastically increasing from past 3 years. An overview of the financial statements from 2008-09 to 2010-11

Particulars
Purchases Sales Share capital Fixed Assets Current Assets Current Liability Profits

2009-10
3,48,89,20,704.63 4,44,49,18,137.80 28,03,78,400.00 30,44,69,793.61 62,90,32,564.07 22,86,78,902.06 1,85,81,426.68

2010-11
4,38,41,67,552.03 5,45,46,49,501.19 28,00,81,100.00 38,76,12,638.33 69,86,92,786.69 34,64,79,588.60 1,50,94,635.80

2011-12
5,36,83,70,271.93 6,64,72,45,829.12 28,09,32,700.00 35,76,60,101.64 76,68,19,994.43 42,33,35,574.550 1,95,12,928.25

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MIS, STORES, PURCHASE

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AN OVERALL ASSESSMENT OF THE ORGANIZATIONAL STUDY

As an essential academic requirement of SBS Swiss Business School, we are required to undertake an Internship/organizational study in a company. Accordingly I had done my organizational study in Kolar-Chikkaballapura Co-operative Milk Union Societies limited, from May 28th to July 23rd in Kolar. This is a Milk union co-operative society which is completely different from other private or public companies and other co-operative societies. As in other companies Shareholders are the owners of the company but here the Milk producers are the owners of the company. This company works as a 3-tier co-operative system. 1. Primary level 2. District level 3. State level 1. Primary level: This is an Independent and Autonomous co-operative system which has its own bylaw under the rules and regulations of co-operative societies act. The primary level starts from the villages, where the milk producers in the village will join together and form a society called District co-operative society and collects all the milk from the producers and sell it to the company at a specific price. Each village has one society. They have all the rights and acts like the owners of the company. The primary level will be headed by 9 members who are nominated and elected by the DCS members. 2. District level: This is also an Independent and Autonomous co-operative system which has its own bylaw. The district level starts from the Taluks, there are totally 13 unions in Karnataka where few Taluks has its own union and other few unions are framed by two Taluks together. This company comes under district level which is framed by the collaboration of Kolar and Chikkaballapura districts. The district level will be headed by 13 members who are elected from different departments and acts as Board of Directors.

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3. State level: In this level all the 13 unions will join together and works as a single society called KMF. This is registered under the Co-operative societies Act and has its own bylaw. The main aim of this KMF is to provide the quality milk to the customers and to provide Technical inputs, Emergency services, First aid Drugs, conduct infertility Camps, Supply of Fodder and seeds. The state level helps all the unions by providing above facilities and also by providing advertisement and marketing facilities to sell the products. It also handles the surplus production of milk and the milk products from the unions. The KMF plays a major role in fixing the price of the products. This state level will be headed by BOD and the President who is elected by the Government of Karnataka. The KCMUL has many departments like Procurement Department, Production Department, Administration Department, Marketing Department, Finance Department, Stores Department, Purchase Department and MIS department. Each department plays its important role in the success of the organization. Procurement Department is the first and the important department from where the company starts it work. The milk producers will supply the milk to the organization and the procurement department takes the samples of the milk and tests its FAT content and pays according to it, then they boil and chill the milk at required temperature and send it to packing of milk. At present the company is procuring 8.5 lakh litres per day which is the 2nd largest procurement union in the state. After the chilling of milk the production of milk and milk products will start. The chilled milk will be distributed to various production areas like production of Milk Sachets and UHT milk sachets, Curd, Butter Milk, Cheese and Peda. Then these produced products will be stored and then it will be distributed to the agents or dealers. The administration department takes care in recruiting the right employees at the right time for the right place and also the contract labourers and pay salary according to the state governments salary scale. They also take care in the smooth process of the organization by maintaining the good relationship between employees and the labourers. The Marketing department plays a major role in the organization where they are the main to sell the produced products to the final consumers through distributors and the agents. Marketing department guides the transport department by showing the routes where the milk and milk products are sold and in what quantity. Marketing department also takes
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care in the selection of dealers and agents by calling for tenders at the right time to increase its sales. This department provides various offers and discounts to the agents for sales promotion and helps the organization to gain profit. This department changes its strategies according to seasons and the situation. The company itself bare all the transport charges and spends large amount of money from their profits. Later the Finance department collects the entire amount from the sales of their products and distribute accordingly to pay salary for employees and the labourers and to pay money for the suppliers and behalf of this the finance departments spends money on the health treatment of the cows and buffalos in the Medical Hospital. It also spends huge amount on artificial insemination of cows. Finally the MIS department collects and stores the overall company data. The Purchase and Stores department acts accordingly and supply the required materials for the continuous production. Overall the organization is working well with lots of political pressure and with over employment in all departments.

CONCLUSION OF THE REPORT

This report helps the reader to gain the knowledge on how exactly the organization works and how the departments are used to run the organization successfully. The report also shows the following It shows the overall status of the organization It provides a complete picture of the growth of the organization. It shows the current position of the organization. It gives an idea of how the products are produced and sold. It clearly provides the complete information of each department with the department charts. It provides all the numerical facts in the procurement and production and sale of milk and milk products.

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APPENDICES
KMF Annual Report 2011-12 The Economic Times, News Paper (2nd July 2012, Page-7) The Public Relation Officer- Marketing Department.

REFERENCES
www.kmf.co.in www.amul.co.in

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