Industry Profile: The Kolhapur District Co-Operative Milk Producers Union LTD

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
INDUSTRY PROFILE
Garden city college , Bangalore 1
INTRODUCTION TO DAIRY INDUSTRY

India is the largest milk producer in the world with an annual production of 84.6 million MT. India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. Dairy developments have its profound impact on the economy and nutrition levels of the country. Greater improvement opportunities are generated through dairy industry Indias dairy sector is expected to triple its production in the next 10 years in view of expanding potential for export to Europe and the West. Also, India is the lowest cost producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and Japans $2.8 dollars. Also to take advantage of this lowest cost of milk production and increasing production in the country multinational companies are planning to expand their activities here. The operation flood was launched in the year 1970; it was basically aimed at increasing the production of milk and increasing the per capita consumption of milk. It is successful upto some extent. The per capita consumption of milk has been increased from 112 grams in 197071 to ----- in 2006-07.
DAIRY DEVELOPMENT
Before the year 1946 there were no milk unions /milk dairy in India. In the year 1946, first milk union was formed by a person Mr. Peschenji Edulgi Pollson in Gujarats Khaira district and the village was Anand. This was named as Anand Milk Union Ltd. i.e., AMUL. At the time, Pollson was purchasing Milk from villagers of Khaira and Maisa at cheaper rate and then sell the milk and its products in metropolitan cities Mumbai etc. at higher rates and earn more profit. 4th January 1946 was a turning point, where people of Khaira and Maisa district met Sardar Vallabhai Patel, as they were already awakened by the Polsons business. So they thought to start a cooperative society of farmers who were selling the Milk to Pollson. So, the first cooperative society was started at Rawrapura. The two primary cooperative societies were established under the leadership of Murarji Desai. When we were discussing about dairy development, it will be incomplete without knowing what about Dr. Varghese Kurien. Dr. Varghese Kurien is called as Father of White Revolution in India. He graduated in physics from Loyola College, Chennai and B.E. (Mech) from Madras University. He is credited with architecting operation flood the largest dairy development program in the world. The chairman of Khaira District Cooperative Milk Producers Union Ltd. formed Tribuvan Dairy Plant and this marked the rebirth of AMUL. The AMUL pattern of cooperative had been a great success. It encouraged Dr. Kurien to set up NDDB to replicate the AMUL pattern of cooperative across India. Once societies formed at village level, later district level milk unions established. It included all societies coming under that particular district. Once, societies and unions at district level were established, and then State Federations were established. Federation took care of all these unions and societies throughout the state.
During the 1950s and 1960s, India was one of the largest importers of dairy products, importing over 40 percent of milk solids in the total throughput of the dairy industry. The commercial import of milk powder reached its peak at about 53 thousand tons in 1963-64 (Kanitkar, 1999). This concerned policy makers, and a decision was made to achieve selfsufficiency in milk production. The major step forward, which has had a far-reaching impact, came in mid-sixties with the establishment of the National Dairy Development Board (NDDB) to oversee dairy development in the country. The Operation Flood (OF) program, one of the world's largest and most successful dairy development programs, was launched in 1970; its main thrust was to organize farmers' cooperatives in rural areas and link them with urban consumers. Operation Flood has led to the modernization of India's dairy sector and has created a strong network for procurement, processing, and distribution of milk by the cooperative sector. In 1989, the Government of India launched the Technology Mission on Dairy Development (TMDD) program to support and supplement the efforts of Operation Flood and to enhance rural employment opportunities and income generation through dairying. India is currently the largest producer of milk in the world, overwhelmingly thanks to the output of millions of smallholder farms. The OF (Operation Flood) cooperative movement has been important in dairy marketing in different parts of the country and undoubtedly has played an important role in keeping smallholders involved with this fast-growing sector. During the past three decades, milk production in the country has increased from about 22 million tons in 1970-71 to 84 million tons in 2001-02 (GOI, 2003). The per capita availability of milk, which had decreased during the pre-OF period, not only kept pace with the growing population but increased from 107 grams in 1970 to 220 grams in 2000-01. The Indian dairy industry is poised for dramatic growth in the coming decades. The population growth, urbanization, income growth, high income elasticity of demand, and changes in food habits that fueled the increase in milk consumption are expected to continue well into the new millennium, creating a veritable Livestock Revolution. As these events unfold, not all the changes are good, and they have major implications for poverty alleviation, environmental sustainability, public health, and ethical concerns about the treatment of animals as sentient beings. The rapid increase in demand for dairy products in developing countries has led to the growth of milk-production activities in semi-urban areas, which are
essentially detached from their supporting land base. The demand for milk and dairy products is increasingly being met in urban and semi-urban areas by industrial dairy farms, which often generate large amounts of waste. Traditionally, milk production in India has been closely integrated with crop production. However, environmental problems escalate with the scale and intensity of operations, ranging from the least worrisome in traditional systems to highly threatening in large-scale farms. The pollution problem in rural areas is internalized, as the small amount of manure produced is used as fuel or organic fertilizer to improve the soil for crop and fodder cultivation. In the commercial production system, a large amount of waste is generated, which needs to be treated before its disposal or use. Doing so requires not only careful planning but also large capital investments to create the infrastructure for waste treatment and its economic disposal. The establishment of large commercial dairy farms in urban areas may create some social problems. The growth stimulus coming from the strong demand for livestock products is not transmitted to the rural areas, where it could encourage rural development, more equitable distribution of income, and poverty alleviation. Small producers find it difficult to compete with large commercial units due to policy distortions. Milk production in rural areas generates supplementary income and employment opportunities, which are adversely affected by the growth of commercial dairy farms.
NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

NDDB has been established in order to support the dairy development in the India. The NDDB is aimed at Providing financial assistance to the cooperative dairies. Providing technical support. Providing marketing assistance.
Details about NDDB
NDDB has 170 cooperative unions its members. NDDB has 15 state federations under its operations. NDDB operates in 285 districts. NDDB covers nearly 1, 01,000 villages under its operations. Total milk production of the industry was 21.2 million MT in 1968 and the production has considerably increased to 84.6 million MT in 2004-05 due to the efforts of NDDB.
MARKETING
The market for dairy cooperative has been encouraging. In 2001-02 average dairy cooperative milk marketing stood at 134.23 lakh liters and is expected to grow at 5% over the next five years. - During the last decade the milk supply to each 1000 urban customers has increased from 17.5 to 47.3 liters. This increase encourages the cooperative milk marketers. - The annual value of Indias milk production amount to Rs.850 billion.
COOPERATIVE DAIRY UNIONS AFFILIATED TO NDDB

NDDB has 15 state dairies cooperative unions under the operation. The dairies cooperative unions are: 1. Andhra Pradesh Dairy Cooperative Federation [APDCF] 2. Bihar Cooperative Milk Producers Federation [BCOMFED] 3. Gujarat Cooperative Milk Marketing Federation Limited [GCMMF] 4. Haryana Dairy Development Cooperative Federation [HDDCF] 5. Himachal Pradesh State Cooperative Milk Marketing Federation Limited [HPSCMPF] 6. Karnataka Milk Producers Federation [KMF] 7. Kerala State Cooperative Dairy Federation Ltd [KCMMF] 8. Madhya Pradesh State Cooperative Dairy Federation Ltd [MPCDF] 9. Maharashtra Rajya Sahakari Maryadit Dudh Mahasangh [MAHASONGH] 10. Orissa state cooperative Milk Producers Federation Ltd [OMPFD] 11. Pradeshik Cooperative Dairy Federation Ltd (UP) [PCDF] 12. Punjab State Cooperative Dairy Federation Ltd [MILKFED] 13. Rajasthan Cooperative Dairy Federation Ltd [RCDF] 14. Tamil Nadu Cooperative Milk Producers Federation Ltd [TCMPF] 15. West Bengal Cooperative Milk Producers Federation Ltd [WBCMPF] (Ref: as on 15th Aug., 2007) These cooperative unions are affiliated to NDDB and these unions get financial technical and marketing assistance from NDDB.
COMPANY PROFILE
INTRODUCTION
The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was established on 16th March 1963 under the Co-operative Act. It made a moderate beginning g by collecting 700 liters of Milk per day from 22 societies. Most success stories have a humble beginning & also it has been with Kolhapur Zilla Dudh Utpadak Sangh Maryadit. On 16th March 1963 a spark stormed a fire to help the White Revolution revolt heavily, when on this day came into being the Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd with the introduction of its popular brand of Gokul Milk & its wide range of Dairy products in to the market.
The Kolhapur District Co-operative Milk Producers Union Ltd., Kolhapur established on 16th March, 1963 under Co-operative Societies Act (Regd. No. KPR-PRD [A] 102), made a moderate beginning by collecting 700 liters of milk per day from 22 societies. The basic function of the union during the formative years was to procure the milk and supply it to the government dairy in Tarabai Park, Kolhapur. This modus operandi continued for many years. In 1978, The National Dairy Development Board included Kolhapur District under Operation Flood area and this was the beginning of a new era for the milk union. The project was financed by the National Dairy Development Board (NDDB). On turnkey basis NDDB
constructed a 2 lac liters per day capacity dairy plant at Gokul-Shirgaon. Similarly, at Gadhinglaj and Bidri chilling centers of 75,000 and 50,000 liters / day capacity were also constructed with the help of NDDB. Two more Chilling centers at Gogave and at Tawarewadi have proposed under operation flood-III programme of National Dairy Development Board. The expansion of Cattle Feed Plant from 100 MTD to 200 MTD has been completed during Oct., 1992, under the financial assistance from National Dairy Development Board under OF-II programme. The dairy was commissioned towards the end of 1985. Meanwhile, with the efforts of the National Dairy Development Board, the government milk scheme in Kolhapur was handed over to the Kolhapur Dudh Sangh in 1985. With commissioning of a new dairy at Gokul Shirgaon, the government became defunct. During 1985, the average milk procurement was 114836 liters per day with 676 village level societies affiliated to the Dudh Sangh. Therefore, the raise in procurement every year has been very fast and in 1994-95 the average procurement was 376,501 liters per day. In the flush of 1994, maximum milk procurement touched figure of 4, 47,262 liters per day.
COMPANY PROFILE
1) Name : The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur (GOKUL DAIRY) : B-1, M. I. D.C. Gokul Shirgaon, Kolhapur- 416234. Maharashtra, India : VIKAS KAKSH, TARABAI PARK, KOLHAPUR, Maharashtra : 16th March, 1963 : Co-operative Society : 8:15 AM to 6:15 PM : Monday : (0231) 267 23 11 (5 lines) : (0231) 267 23 74 : 195/248 : DUDH SANGH : www.gokulmilk.coop
Chairman: chairman@gokulmilk.coop Managing Director: md@gokulmilk.coop Sales: sales@gokulmilk.coop
2) Location
3) Registered Office 4) Establishment 6) Constitution 7) Working Hours (Tuesday to Sunday) 8) Weekly Holiday 9) Phone Number 10) Fax 11) Telex 12) Gram 13) Website 14) Email:
15) Annual Turnover
: Rs. 425 Crores (FI-2006)
4.2 NATURE OF THE BUSINESS CARRIED

The organisation involved in production of milk products such as Skimmed milk powder, Butter, Ghee, Table butter, Shrikhand, Curd, Paneer and Lassi. It also stores and sells the milk. Thus, the following are the major activities carried by the Kolhapur District Cooperative Milk Producer Union Ltd.,: Undertake activities of procuring clean and quality milk at main dairy and chilling centers from dairy farmers through their Village Co-operatives and remunerative price throughout the year on qualitative basis. Process and convert into products the milk received from the dairy co-operatives, take up commercial production and marketing of Gokul products such as Milk powder, Ghee, Butter, Table Butter and Shrikhand (Sweet Curd). Supply surplus milk to Mahanand Dairy, Mumbai managed by Maharashtra Rajya Sahakari Maryadit Dudh Mahasangh (MAHASONGH), Mumbai, Goa Union and to other cities and towns for consumption of consumers. Manufacture balanced Cattle Feed for supply to the dairy co-operatives in the milk shed at reasonable price. Convert conventional dairy co-operatives into Anand Pattern and regularly monitor their functions through Extension Services Wing of Procurement and Input Department. For maintaining rate of milk production in Kolhapur district, here onwards a stress will have to be given on scientific breeding. Shortage of semen material of excellent genetic quality is main problem which is being faced in animal breeding. For this matter progeny testing and sire proving programme will have to be taken
up. Embryo transfer activity undergoing in the Kolhapur Union is additional complimentary point for the above programme. With a view to create awareness and encourage lady farmer members in day to day activities of milk production and management of co-operative societies, a separate cell called Co-operative Development Cell is opened. With the help of NDDB, a training centre is established to train society secretaries, management committees, first aid and milk testers etc for effective management of Dairy Co-operatives. This facility is also extended to the adjoining district Milk Union. The above stated products are sold under family brand name of Gokul. Marketing of liquid milk & products outside the state is organized by the federation. Excellence in quality is maintained to lay a solid foundation for widespread acceptance for Gokul products.
4.3.1 OBJECTIVES

To organize the co-operative structure of milk producers at the village level. Development of infrastructure for procurement of Milk in rural areas of Kolhapur District to ensure an assured market for Milk producers throughout the year, as well as good remunerative prices.
Fulfill the growing need for Milk & Milk products of the consumers in Maharashtra & else where. Supplement the programme extension & inputs, with particular reference to feed & fodder production & implement an intensive breeding programme for Milk animals to increase Milk production.
Imparting training for developing human resource at rural level for effective leadership, Management skills & improvement of services to rural Milk producers. Procuring milk throughout the year at morning and evening from milk producers by organizing dairy cooperative societies on AMUL PATTERN & providing remunerative rate and regular market to the milk produced by the members.
Paying good remunerative rate to farmers based on the quality i.e. fat & S.N.F percentage in the milk. channelizing technical inputs such as : Artificial insemination. Supply balanced cattle feed to the farmer producer at no loss profit base. To ensure supply of improved varieties of fodder seeds & seeding at subsidized rates. Supervision by trained officers of the union & guiding about clean milk production & modern dairy husbandry practices. Developing leadership in the economic up lift of the producers & making the farmer producers self reliant economically.
Processing and marketing milk by i. ii. iii. Chilling Pasteurization Packing &
iv.
Supplying to the sales outlet
4.3.2 VISION
Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur, commonly known as Gokul is a farmer's Dairy Co-operative organisation dealing with more than 300,000 rural milk producers. This professionally managed organisation is working under able and dynamic leadership of its Chairman, Mr. Rajkumar S Hattarki. Its paid-up share Capital is of Rs.150 million and its annual turnover is of Rs.3.5 billion. Daily 460,000 liters of milk is handled by the organisation out of which about 80% share is of buffalo milk. Its main dairy of 750,000 LPD capacity with powder plant of 30 M.T. per day capacity is situated at Kolhapur in Maharashtra State. This processing facility is supplemented by a chain of Chilling units located in its operational area. On the merit of its excellent performance, the organisation has won Indian National Productivity Council Awards for 11 times during last 11 years. It is highly cautious in observing strict quality control norms in its various operations. To get ISO-14000 certification in the upcoming year. While striving hard to provide utmost satisfaction to its esteemed customers it is also constantly endeavoring to improve the quality of life of its rural producer members through execution of unique village development programmes i.e. Gokul Gram Vikas Yojana. In order to enhance Milk production, the Sangh provides on credit, quality Cattle feed on a 'no profit no loss' basis, as well as free A.H. services & nominally charged A.I. services to the Producer members. All-round achievements of organisation is cumulative outcome of visionary directions from its members of Board of Directors, Managing Director, dedicated work put up by its able and devoted staff and last but most important one is whole hearted involvement of its member producers in policies of organisation.
4.3.3MISSION
The mission identifies the basic function or task of an enterprise or agency or any part of it. Every kind of organized operation has, or at least should have if it is to be meaningful, a purpose or mission. In every social system, enterprises have a basic function or task that is assigned to them by society. So, people sometimes think that the mission of a business, as well as its objective, is to make a profit. It is true that every kind of enterprise must have, a surplus in business, a profit goal or objective if it is to survive and do the task society has entrusted to it. Thus, The Kolhapur District Co-operative Milk Producer Union Ltd. has following mission statement: We Endeavor to satisfy the taste and nutritional requirements of the customers through excellence in marketing by Gokul team, and committed to offering quality products that provide best value for product.
4.5 AREA OF OPERATION - REGIONAL

The Kolhapur Milk Union covers all the twelve talukas as follows: 1) Karvir 2) Kagal 3) Chandgad 4) Gadhinglaj 5) Ajara 6) Radhanagari 7) Gaganbavada 8) Budargad 9) Shahuwadi 10) Panhala 11) Shirol 12) Hatkanagale However, 41 villages from Hatkanagale and Panhala talukas are affiliated to Warana Milk Producers Union. So, it has covered all the major areas of the Kolhapur district by operating at regional level.
4.6 OWNERSHIP PATTERN.

The Kolhapur District Co-operative Milk Producers Union Ltd., builds and runs under the co-operative institutions such as: It is working as a District Co-operative Society. (DCS) It also works under National Dairy Development Board. (NDDB) because, NDDB has played very important role in the development and progress of Gokul. Gokul has been quite successful in implementation
of operation flood phase-I and phase-II. This resulted in creation of tremendous milk production.
4.7 COMPETITION ANALYSIS

In todays world, every organization is in search of the market potential, the Kolhapur district is not large as other metros. Thus, the city can be easily targeted by the competitors. The main competitor for every dairy is the milk man. They are the one who have captured major share of the milk supply because of their long term relationship and contacts they have maintained with the customers. Dairies like Mata, Mahalaxmi, Warana, and Arokya are based on religious matters captured 15% of the market shares. Most of the companies tried to face the competition and they were failed. But, The Kolhapur District Co-operative Milk Producers Union Ltd., is the leader of the market. But, now days, because of entry of all these dairies the organizations is facing lot of competition. The neighboring states Karnataka and Goa have entered into the market to compete with the brands like Mahalaxmi, Arokya, and Warana are entered into the Kolhapur market.
Brief history about competitors of The Kolhapur District Cooperative Milk Producers Union Ltd.
The Kolhapuri people taste new brands of milk every year Right now/ till date there are 16 competitors in the market apart from Gokul. There 5 major brands which are very competitive for Gokul are, Arokya, Mayur. Sahyadri Mahalaxmi
Warana
Arogya Dairy: It procures most of the milk from south side of the Kolhapur District,
because the immediate state is Karnataka and Arogya is one of the leading dairies in Karnataka. It procures 10,000 liters of milk every day. It is located near Desur a village of Belgaum district 10 kms away from city on NH4 A- they supply most of the procured milk to the some milk societies of The Kolhapur District Co-operative Milk Producers Union Ltd..
Mayur Dairy: It procures milk mainly from districts large scale milk. It procures more
than 25,000 liters per day. It is also located in Kolhapur & the supply milk to Kolhapur as well as Belgaum district. The standard milk of Mayur dairy contents a fat of 6.5% & 9% with this fat & S.N.F they supply nearly 10,000 LTPD.
Sahyadri milk: The dairy is located in Shinnolli Taluka, Chandgad & district Kolhapur.
This is 115 kms away from Kolhapur city. It procures dairy about 30,000 LTPD which will be supplied in some part of the district as well as in the Karnataka state.
Mahalaxmi Dairy: The Mahalaxmi dairy plant is located near Kolhapur, which procure
round about 15,000 to 20,000 LTPD & its target market area in Belgaum district, Gokak & in Maharashtra state. Besides, the above main brands to other competitive brands like Krishna, Gopal, Aditya, and Arokya etc.
4.8 INFRASTRUCTURAL FACILITIES.

The Kolhapur District Co-operative Milk Producers Union Ltd., has played a very important role in the development of infrastructural facilities of the organisation as well as development of the surrounded rural areas. So, some of the facilities which the organisation has provided are as follows:
-Facilities to the Rural People

1) GOKUL GRAM VIKAS YOJANA
This programme is in operation since 1989 and the main highlight is Extensive Extension Education. This programme has covered more than 1078 villages and has engaged in many developmental activities as follows:
a) SOCIETY BUILDING PROGRAMME

The following table represents the details of this programme and various activities conducted under this programme. TRAINING TYPE Men Training Women Training Committee Visioning Programme Cleanliness Contests Sahakarmunch Programme No. OF PRAGRAMMES 43 39 48 28 42 No. OF PARTICIPANTS 2,636 3,220 545 674 904
b) CLEAN MILK PRODUCTION ACTIVITIES

The following table contains the details of clean milk production activities carried by the organisation in different routes, and DCSs.
Number of Routes Covered Number of DCS covered Number of programmes organized Number of participants
182 3008 3,649 1,60,501
c) SUBSIDIES PROVIDED TO THE MEMBERS

The following table gives information about the various subsidies provided by The Kolhapur District Co-operative Milk Producers Union Ltd., to its members as follows:
S. No
1 2 3 4 5 6 7 8 9 10
Particulars
Purchase of Cow & Buffalo Society Building Computerization Purchase of Generator Bore well Purchase of Milko Tester Women Excursions Fodder plot(100% verification of plots) Veterinary Services(Emergency round the clock regular once in the week) Training at MU Training Center(25% concession in fee)
Rs.
5000-7000 per animal 22000-35000 20000 4000 10000 3000 15 per woman per day -
d) GRANTS POVIDED TO DCSs AND FARMERS TILL 2008-09.
Grant Item
Buffalo Purchase Cow Purchase DCS Building Bore well Computers Generators for DCSs Battery for DCSs Milking Machines Women Visits Total Amount902 92 439 26 623 468 73 13 41
Nos.
Rs (in Lac)
1120 330 112 26 212 19 1 4 1 1826
Thus, these above all are the activities and facilities provided by The Kolhapur District Cooperative Milk Producers Union Ltd., to its members and other rural public. There are many other programmes carried by the organisation such as:

Training for awareness of law Training for health awareness

Training for self-development Training for skill development Training for leadership development Training for hygiene awareness Training for organisation of thrift co-operative Arrangement gatherings Arrangement of Excursions
-Infrastructural Facilities to employees

There are also some infrastructural facilities provided by The Kolhapur District Co-operative Milk Producers Union Ltd., to its workers, employees and to the Gokul diary. They are as follows: Security facilities to the workers, especially to the women workers and employees. Canteen facilities to the employees. Shifts facilities-3shifts per day. Overtime facility during the on-season. Fully computerized office working and networking, The Kolhapur District Cooperative Milk Producers Union Ltd., is having its own computer section called Management Information System (MIS). Posh offices and health work culture and environment.
4.9 ACHIEVEMENTS OR AWARDS

Gokul Dudh Sangh, thanks to its high production standards & exemplary performance, has won the National Productivity Council Award 11 times since year 198899. Under guidance & assistance from NDDB & FAO, Gokul implemented a Quality Management System. The System contributed towards improving quality of the plant & its output not only up to the National standards but well enough to compete at International
levels. It also got ISO-9002 Certification in the year of 1998. Here are some details of the awards that we have won over past years..
1) NATIONAL PRODUCTIVITY COUNCIL AWARD (1st PRIZE)
The above image denotes 1st Prize for National Productivity Council Award. The 1st Prize was won for the following years

89-90 91-92 and 93-94 (won for both Dairy & Cattle feed categories)
2) NATIONAL PRODUCTIVITY COUNCIL AWARD (2nd PRIZE)
The above image denotes 2nd Prize for National Productivity Council Award. The 2nd Prize was won for the following years

92-93 (won for both Dairy & Cattle feed categories) 94-95 (won for both Dairy & Cattle feed categories) and 96-97
3) MERIT CERTIFICATE AWARDS

The image on the right denotes the Merit Certificate award, this was won for the following years

93-94 94-95
4.4 PRODUCT PROFILE

The Gokul Dudh Sangh Products are extremely popular in the Local & Distant Markets. Branded as Gokul Products, they include Milk, Shrikhand, Ghee, Table Butter, and Skimmed Milk Powder & White Butter.
Moreover, Skimmed Milk Powder is IS-Part I & Part II Extra Grade, which is on its way to capture the global market. In 1988, Liquid Milk Marketing was launched in Mumbai by the Dudh Sangh. Sales initially were 16,000 Liters/Day. Today, Standard, Cow & Tonned Milk together account for more than 3.5 Lakh Liters/Day. In 1993 Gokul Milk was launched in Pune where the sales are 20,000 Liters/Day. The present sale in local Milk market is 70,000 Litres/Day. Thus, the following chart explains the different types of products of Gokul Dairy:
1) MILK
The following table gives the details of the Brand, the different kinds of milk, packing size, Fat, Rates, Moisture, SNF, Carbo-hydrates, Minerals, Protein, and Curd. Brand Gokul
Packing 1 Litre & 500 m.l. Pouches sizes STANDARDISED MILK Fat 6.5 % SNF 9.2 % Rs. 20/- Local Rate per Rs. 20/- for Pune, Kokan & Belgaum Litre Rs. 22/- in Mumbai, Thane & Raigad District COW MILK Fat 4.1 % SNF 8.5 % Rate Rs. 19/- Mumbai, Thane & Raigad District TONNED MILK Fat 3.1 % SNF 8.5 % Rs. 17/- for Mumbai, Thane & Raigad District Rs. 16/- for Rate Kokan & Belgaum DOUBLE TONNED MILK Fat 1.5 % SNF 9.1 % Rate Rs. 15/- for Mumbai, Thane & Raigad District.
2) SHRIKHAND
Brand Variety Fat Sugar Gokul Badam Pista Mango, Ilaichi, Nutmeg 7% 40 %
Protein Packing Sizes 500 gm. Poly Bag 250 gm. Poly Bag 500 gm. Cup 250 gm. Cup 100 gm. Cup
9% Rates per K.g. Rs. 94/- (only for Ilaichi) Rs.100/- (only for Ilaichi) Rs. 110/Rs. 120/Rs. 130/-
3) GHEE
Ghee is the another one product of Gokul and the following two tables represents the information regarding the information related to the product and other necessary instructions such as usage of the product, distribution, labeling instructions, shelf time, market place and scope of hazards.
Brand
Gokul Packing 1 Ltr. Pouch sizes 500 gm. Pouch Fat 99.7 % Moisture 0.3 % Rates Rs.280/- per 1 Ltr.
4) BUTTER
SL.NO. Particulars
1 2 3 4 5 Product Name Usage Shelf Time Market Labeling Instructions
INSTRUCTIONS
Gokul Ghee It is ready to consume or it can be used as an ingredient in making various food products. Six months from the date of manufacture All over India Batch number, Date of manufacture, Best before date, Box number, Workers code number, Gross weight, Vegetarian, logo and AGMARK label. Covered Vehicles General population, Confectionary and any food industry. At ambient temperature Biological: None, Chemical: Rancidity, Cleaning and Sanitizing chemical residues. Physical: Leaching of tin and possibility of pieces.
6 7 8 9
Distribution Consumer Storage Condition Scope of Hazards
In Butter there are two types one is Yellow Butter which is consumed or used by institutions and another is table butter which is consumed by the general population.
A) TABLE / COOKING BUTTER

Brand Packing sizes Fat Moisture Salt Curd Rates Gokul 500 gm. Pack 100 gm. Pack 80.5 % 16 % 2.5 % 1% Rs.240/- per K.g. Rs.250/- per per K.g.
B) WHITE/YELLOW BUTTER
Brand Gokul
Packing size Fat Curd Cooking Butter Brand Packing size Fat Curd Gokul 500 gm. 78% 2%
20 K.g. Box 83 % 1%
SL.NO. QUERIES
1 2 Product Name Usage
INSTRUCTIONS
Gokul Table Butter & White/Yellow Butter a) Table Butter: For Direct consumption. b) White/Yellow Butter: It can be used to preparation of Ghee and other confectionary products. a) Table Butter: 6 months from the date of manufacture. b) White/Yellow: 12 months from the date of manufacture. All over India. Covered vehicles a) Table Butter: General Population b) White/Yellow Butter: Institutional Sale. Below 10 C Biological: Yeast & mold, coli forms. Chemical: Cleaning & sanitizing & printing ink. Physical: Hair, or any other physical matter like polythene pieces etc.
Shelf Time
4 5 6 7 8 9
Market Labeling Instructions Distribution Consumer Storage Condition Scope of Hazards
6) SKIMMED MILK POWDER

Brand Packing sizes Gokul 1 K.g. Poly Bag 500 gm. Poly Bag
100 gm. Poly Bag 25 Kg. in Bag Fat Moisture Protein Carbo-hydrates Minerals Rates 1.0 % 3.5 % 35 % 51 % 7% 1 K.g Poly Bag, Rs.200/- per K.g. 500 gm. Poly Bag, Rs.200/- per K.g. 100 gm. Poly Bag, Rs.210/- per K.g.
4.10 WORK-FLOW MODEL (END TO END)

Production process of The Kolhapur District Co-operative Milk Producers Union Ltd., (Gokul Dairy) has the following workflow model.
DCS Fresh Liquid Milk Sample Testing Fat and SNF Chilling Storing Pasteurization Separation
Homogenization
Storing Packing Dispatching
The above diagram represents the workflow model of The Kolhapur District Co-operative Milk Producers Union Ltd., Kolhapur. First, the milk comes from the DCSs and then the procured milk is tested and also Fat and SNF are tested. After testing the milk has to be chilled and stored. Pasteurization, separation, and Homogenation is done. After Homogenation the milk has to be stored and then it packed and finally dispatched to the existing market.
2.11) FUTURE GROWTH AND PROSPECTUS

The government of Maharashtra and NDDB has signed a memorandum of understanding during February 2000, for further strengthening the dairy development activities in Maharashtra with an outlay of Rs.250 crores. Consequent to the announcement of new lending terms and conditions by NDDB through an evolution of an action plan perspective 2010 to enable dairy co-operative to face the challenges of an increased demand for milk and milk products by focusing efforts. Enhancing productivity, managing quality and building national information network plans are under implementation. Thus, The Kolhapur District Co-operative Milk Producers Union Ltd., has the following has some activities for future growth and it has bright future in the dairy sector. Preparing for ISO-9001 certification. Marketing quality improvement. Developing HACCP-hazards Analysis and Critical Control Points. Getting export grade milk powder
OVERALL ORGANISATIONAL STRUCTURE
Board of Management
Managing Director
Procurement & Input
Administrati on
Finance
Purchase
Manager
Supreden t Administ ration Deputy Manager Veterinar y Clerks Compute r Operator s Attainder
Security Officer
Canteen
Deputy Manager
Assistant Manager
Deputy Manager P&I
Deputy Manager F&F
Assistant Security Officer
Cooks
Account Officer
Assistant s Grade I
Assistant P&I
Agricultur e Officer
Assistant Manager
Security Guards
Account Assistant
Helper
Extension Officer
Assistant s
Veterinary Assistants
Grade I, II, III
Grade I, II, III
5.1.2) SUB-STRUCTURE OF THE KOLHAPUR DISTRICT COOPERATIVE MILK PRODUCERS UNION LTD.
The following organizational chart represents the sub-structure detailing with each functional discipline.
Board of Management
Managing Director
MIS
Marketing
Manager Dairy
Officer
Manager
Deputy Manager (Productio n)
Assistant Manager Engineerin g
Quality Control
Stores
Transport
Assistants
Assistants Manager
Assistants Manager
Technical Officers Dairy Superviso rs I, II, III Technicia ns
Technical Officer
Stores Officer
Superviso r
Marketin g Officer Assistants Grade I, II, III
Technical Officer Dairy Superviso rs
Lab Technicia ns
Stores Assistant
Clerks
Helpers
Helpers
Drivers
Clerks
Operators
Helpers
Helpers
Garden city college , Bangalore 32 Helpers
This structure represents a particular organisation destructive capability. It is however important that more than one such type function exists & described those specialized organizational units with proximity to power / superior competence when compared to competitive benchmarks. These vital forces plays a key role in decision making & need to be complementary in order to ensure that they serve as a check on another. The stronger & more competent they are, the mode difficult it is to achieve cross functional team work. The companys challenge is therefore to ensure that these functions are on par with that competition but they need to ensure that they respond to market demand by cutting across these functional compartments.
BOARD OF DIRECTORS
1) Shri. Ravindra P. Apte 2) Shri. Anandrao Patil (Chuyekar) 3) Shri. Ranjitsinh V. Patil 4) Shri. Vishwasrao N. Patil 5) Shri. Rajkumar s. Hatterki 6) Shri. Arunkumar G. Dongale 7) Shri. Diliprao B. Patil 8) Shri. Subhash B. Bondre 9) Shri. Nivasrao E. Patil 10) Shri. Sureshrao R. Patil 11) Shri. Deepak B. PAtil 12) Shri. Vishwas S. Jadhav 13) Shri. Dinkar S. Kamble 14) Shri. Pandurang D. Patil 15) Shri. Babaso S. Chougle 16) Smt. Arundati S. Ghatge 17) Smt.Anuradha B. Patil 18) Shri. D V. Danekar Managing Director Chairman Director
DEPARTMENTS OF THE ORGANISATION

The Kolhapur District Co-operative Milk Producers Union Ltd. has the following departments.
1. PRODUCTION DEPARTMENT 2. ADMINISTRATION DEPARTMENT 3. ENGINEERING DEPARTMENT 4. PROCURMENT & INPUT DEPARTMENT 5. STORES DEPARTMENT 6. SECURITY DEPARTMENT 7. PROCESSING DEPARTMENT
8. LABORATORY / QUALITY CONTROL DEPARTMENT
9. ACCOUNTS/FINANCE DEPARTMENT 10.MARKRTING DEPARTMENT 11.DISTRIBUTION DEPARTMENT
I) PRODUCTION DEPARTMENT
Production department is the main department wherein the raw material is converted into finished into products. At Gokul production department is well planned & adequately equipped manufacturing set up where the necessary infrastructure is available. The quality of the product is also dependant on the production procedure. In Gokul the raw milk is processed to form the good quality of milk. During the processing the milk is differentiated depending on the contract of FAT & SNF (Solids Not Fat).
The production procedure at Gokul is done under different stages. The stages are as follows:
1. COLLECTION OF MILK
In this stage the milk is bought from the various district co-operative societies (DSC) to the main dairy in a can of 40 litters capacity in tempos or in any other vehicles. The cans marked with two different colours to differentiate between the cow & the buffalo milk. One the milk is bought to the main dairy it undergoes into following process.
2. UNLOADING
The cans were unloaded is called as dock station. The cans are unloaded from the vans manually.
3. ORGANOLEPTIC TEST
This test is carried out by a person manually without using any machines but using his sense organs like nose & hence it is called as organoleptic test. This test is conducted before the cans are weighed. In this test various sub-tests are conducted like:
SMELLING (ODOUR) TEST:-
A man at dock station or platform checks the acidic nature of milk by smelling or tasting the raw milk. If the tasted milk has bad odors then the dairy will pay lower rate to such society members than the normal rate.
EXTRANEOUS-MATTER APPERANCES:In this test the raw milk is undergone into the test, which is conducted by the chemist. The chemist checks for two aspects mainly whether the milk is contaminated or not & the milk is in liquid form or curd form. He also checks for any extraneous matters like dust, flies etc. which lead to spoilage of milk.
AICDIC TEST
As regarding the payment to the suppliers or DSC depends mainly on FAT & SNF content in the raw milk. The supplier may add sugar to the milk so as to increase the FAT & SNF content. Hence to avoid this adulteration sugar test is done. Its procedure is 10ml of milk is shaken in a test tube & 1ml of hydrochloric acid. Few crystals of resorcinol is mixed to it. The solution is shaken well & heated for five minutes. If solution turns organ color it is demanded that sugar is mixed to it.
4) STORAGE OF CHILLED MILK

Once all the tests are over, the milk is allowed to store in the SILOS (Storage tank) to maintain its cold level of 4 degree Celsius. The unions having 7 storage tanks, 3 tanks are vertical with 30000 litters capacity each and the remaining 4 are horizontal among which 2 are having the capacity of 10000 litters each and other 2 of 15000 litters each. After chilling the milk is passed through pasteurizer for pasteurization.
5. PESTEURIZATION
This step of production includes heating every particle of milk at 72 degree Celsius in 15 seconds and it cold in less then 4 degree Celsius. When it is passing through pasteurization the cream is removed depending on the quality of the milk required (Standardization).
6. PACKING
Once the pasteurization closed is conducted the next step is to pack the milk. The packing is done by the machine of fluid goods and were as it is done manually in case of solid goods like Ghee, Shrikhand and Butter. The machine packs the raw milk in two sizes that are 500ml and 1000ml pouches. These machines are automatic with a capacity of packing 10000 to 14000 pouches per hour. The speed can be even altered according to suitability. These machines are used to pack all different types of milk in plastic bags. These plastics are polythene bags required for packing milk.
7. STORAGE
The last but not the process is the whole of production process is storage. The milk packed in 500ml and 1000ml pouches are arranged in the crates. Each cater contain 10 litters of milk. This caters are stored in cold room which has a temperature of about 5 degree Celsius or below. Functions: Production Planning: The activities like estimating, routing, scheduling, loading, and dispatching etc. a) Estimating: Here they decide the quantity of products to be produced and cost involved on the basis of sales forecast. b) Routing: Here they determine the sequence of operation to be performed in the production process. They decide about what work to be done, where, and how? c) Scheduling: They perform the activities of starting and finishing of work. It is just like a time table for production of yarn. d) Loading: 1) Machinery problem solution: This department also sees problem of machines, any defect in machineries, stoppage problem of machinery etc. 2) Labour requirement for each shift: They also decide how much labour force is required for each shift.
II) ADMINISTRATION DEPARTMENT

The administration department of Gokul does the following activities or functions: 1. Maintenance of attendance. 2. Establishment of billing. 3. Maintenance of service records. 4. Domestic enquiry. 5. To maintain shifts timing. 6. To look after recruitment process. 7. Conducting training to the new employees and also to the existing once.
RESPONSIBILITIES OF ADMINISTRATION DEPARTMENT

To look after the overall administration of time office management. Conducting training to the new employees and also to the existing once. To look after over recruitment process. To maintain shifts timings.
STAFF
Staff means that the company has higher able people, trained them well & assigned them to the right jobs, selection, training, reward & recognition, retention, motivation & assignment to appropriate are all key issues. Below are given the personnel policies followed by the
organization. In Gokul the administrative department forms the policies. Thus, the following are some policies regarding the personnel.
Recruitment and Selection:

Due to registration, termination, retirement and transfers the concerned department head will give the manpower requirements along with the job description. The manpower sourcing is done through advertisement, manpower consultant, and employment exchanges and personnel reference.
Promotion:
Promotion is on the basis of seniority and educational qualification.
Induction:
After an employee is employed in Gokul, he\ she has to make familiar to the union and also to know the objective, value, functions and the operations. This helps the employees to interact with senior staff members from various departments.
Salaries and Employee Benefits:

Gross salary:
A regular staff member in the union will have a gross salary consisting of basic salary, dearness allowance, CCA, house rent allowance and conveyance allowance etc. Other facilities given by the organisation are: Shift allowance Canteen facilities
SKILLS
The companys skills include hard assets such as financial strengths & dominant market share but it takes the human & managerial input to translate these into a sustainable competitive advantage. A companys decision is to decide whether if should be better at what it is already good at, or whether it should be looking toward higher order capability that is beyond the old. The important skills of the companys that are being provided to the employees in the organisation are as follows. Rural education, health awareness camps, enhancing the milk donors to the federation is the main motto.
Everything should be collected in order to enhance & bring forth the rural activities. In order to bring the dairy farming, cattle breeding to sustain in the market & give customers & complete satisfaction. Testing of quality, measuring of volume, improvement in the quality etc, are done in order to improve the quality standards of products. Improve the work efficiency of laboratory personnel to disclose the harmful chemicals/materials in the milk of private brands. Conducting motivational program & providing the training to enhance the work efficiency of its manpower. Thus, Gokul is improving the employees skills and techniques through motivating them and giving proper training to them also through giving proper working condition.
STYLE
Style refers to the employees shared & common way of thinking & behaving unwritten norms of behavior & thought. Leadership Organizational culture The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. has its own management style as follows: a) It has top to bottom or top down style system. b) The style of organization is authoritarian. It means management cadre follows authoritative. The indicators of the style are: Follows rules and orders Reliable and dependable
Decision making parameter for day-to-day operation:

Top manager will tell marketing manager to collect information regarding daily requirements of the sale of milk and milk products based on demand. Then this information will provided to production department indicating production activities
III) MARKETING DEPARTMENT

The marketing department is the nearest of any organization. In todays highly complex and competitive world, marketing is the tool, which has to be derived properly to sell the product. Marketing is the more of a complex job and it requires a great deal of the knowledge about the market that its competitors. The marketing management requires planning, analyzing, implementing and controlling of programmes designing to create, build and maintain beneficial exchange with target buyers for the purpose of achieving organization objective.
OFFICE WORK:1. Checking daily sales as per the respective agents. 2. Finding new areas where there is demand for milk. 3. Issuing tender and receiving application for opening new parlors and agencies. 4. Fixing/organizing milk distribution routes. 5. Sending of milk / milk products as per the indent. 6. Keeping in track of the timing of vehicles and timely supply of milk. 7. Collection of cash from agents and depositing the same to the milk. 8. Attending complaints from the agents. 9. Meeting agents to solve their problems. 10. Draw new advertising strategy.
Functions
Marketing department performs the functions which relates to distribution of yarn to customers/consumers. This department performs the various functions. These functions are described below:
Market survey The market survey includes defining the target market where potential customers are available. They identify the customer requirement and the purpose for which the yarn is use. Then they decide which count should be produced. They also participate in the production planning.
Branding They perform the function of branding activity. GOKUL is the brand which was introduced in1963.To make awareness of this brand they mention there brand, in each and every correspondence, through website, E-mail, Labeling of the packaging cartons, etc Pricing strategies This department fixes the pricing of yarn. While fixing the price it will consider the total cost of production, market demand, comparing competitors rates and quality and also will consider customers ability to spend on purchasing of yarn.
FIELD WORK:Sales promotional activities like advertisement in reality selling. The product in the real marketing is very hard and tough job. The marketing officer has to go the field and study the market and they have to plan the strategy. The marketing mix plays a vital role while appointing the agents they take initial deposit of Rs.2000 in Kolhapur district and Rs.1000 in Goa. After receiving deposit they issue bond to them. The bond consists of rules and regulation of the union.
IV) PROCUREMENT DEPARTMENT

Procurement department of The Kolhapur District Co-operative Milk Producers Union Ltd. is headed by manager of procurement who is reported to the managing director. He is responsible for monitoring entire procurement activities in milk shed area. He is responsible
for giving technical inputs, veterinary benefits, fodder & feeds, cattle feeds, first aid. He arranges for training for the excellent performance of the society. Deputy Manager of procurement department is the second authority in the department & reported to the manager of the department. Veterinary officer in this department is reported to the deputy manager of the department. His functions are technical area. He provides veterinary facilities such as health treatment, emergency visits. He arranges for camps, vaccination programme & he also arranges for training to society in artificial insemination, dairy animal management & first aid.
V) FINANCE /ACCOUNTS DEPARTMENT

The higher authority of accounts department in The Kolhapur District Co-operative Milk Producers Union Ltd. is deputy manager. He is reported to managing director. He has overall control over finance & account division of the organisation. Verifying & signing of all the cashbooks, ledgers & other statutory returns/ records is responsibility of deputy manager of accounts department. The deputy manager monitors day today activities of The Kolhapur District Co-operative Milk Producers Union Ltd. Account superintendent is in charge of accounts assistance & verified & monitors the work of account assistant. He has to report all the details to the deputy manager of the department. Account assistant is reported to account superintendent. He prepares day-today transport bills, suppliers bills. He enters all the transactions in the cashbooks. It is the responsibility of the account assistance to look after / monitor the cash transactions & various payments. The organisation is following double entry system of book-keeping. Accounts maintained by The Kolhapur District Co-operative Milk Producers Union Ltd are journal book, general ledger, personnel ledger, bank book etc.
Functions Finance department perform the various functions related to receipts and payment of bill. They carry out the following functions: Financial planning Arrangement of finance
Distribution of finance Finalization of account Daily administration of account Correspondence with bankers Correspondence with government department both state& national level Providing accounting and control information to management
VI) LABORATORY
The laboratory of Kolhapur District Co-operative Milk Producers Union Ltd. does the following activities. It also works as Quality Control Department examines and controls the quality of milk and milk products. Basic Method : the milk freshness is identified by its smell Gruber Method: in this method sample of milk i.e. 10.75 ml is added along with 10ml sulphuric acid & 1ml amino alcohol in Buterometer & is subjected to centrifugal machine (1200 rpm) for 3minutes Lactometer Test Method : In this test lactometer is used to know the specific gravity, the solid contents of milk, method is also known as SNF( solid not fats) Rosaline Test: to know the sugar addition MBRT Test (Methylene Blue Reduction Test): To know the life span of milk. Acidity Test : to check whether the milk can withstand high temperature (during Pasteurization) After passing all the tests the milk is allowed for further processing to production department.
VII) DISTRIBUTION DEPARTMENT

The distribution department plays a very important role in every organisation. Thus, the distribution channel decisions are among the most complex & challenging decision taking by the firm, because each channel system creates a different level of sales and cost once the
distribution has been chosen the firm usually must stick with it for the long time the chosen channels strongly effects by the other element in the marketing mix. The distribution channel of The Kolhapur District Co-operative Milk Producers Union Ltd. is as follows:
The District Co-operative Milk Producers Union Ltd. manufactures the milk and its products, after that it distributes to the retailers and it also having its retail outlets at the factory as well as in major cities.
SWOT ANALYSIS
SWOT ANALYSIS
SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. SWOT stands for strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors. Opportunities and threats are external factors.
STRENGHTS
WEAKNESSES
Internal
OPPORTUNITES
THREATS
External
Strengths:
The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. has the following strengths: Gokul enjoys its good image in the market. It has its wide distribution network which leads regular and timely supply of milk and milk products.
One more strength of the organisation is it processes the local milk; therefore it is having reduced transportation cost. It enjoys highest market shares in the packed milk segment in Kolhapur district and some part of Karnataka and Goa states.
Weaknesses:
There are also some weaknesses of the organisation. So, following are some of the weaknesses of The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd.: Poor retail selling and consumer grievance handling Commission paid to its retailers is less compare to other brands Inadequate sales promotional activities.
Opportunities:
Due to wide coverage and social activities carried by the organisation it has the following opportunities. There is a scope for developing new area or market share not only in Kolhapur district but also in other districts and neighbor states. Availability of buffalo milk improves milk quality. So, it leads to maximum coverage of market share.
Threats:
Today the market become borderless, there is a free entry and free exit of any player. Because of this, customer enables to get full information about what he is buying or going to buy. He also has more choices and preferences. Thus, The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. also has some threats, as follows: There are no any entry barriers for private players. Low level of consumer awareness. Many consumers are not aware about the Gokul and its products. Persuaded benefits of competing brands Due to low commission for retailer they may prefer to go to other competitors.
FINDINGS
a) FINDINGS:
1) In the year 1964, the average milk procurement was 726 ltrs/day & at present (2006) the milk procurement is 5.5 lakh ltrs/day. 2) In the year 1964, 26 village level societies were affiliated to the Dudh Sangh & at present (2006) 2914 village level societies affiliated to the Dudh Sangh. 3) At the establishment of the plant the share capital was Rs.17,400 & at present it is rose up to nearly 34 crores. 4) In 1964 at the time of establishment the plant incurred a loss of Rs.1463 but due to its high standards & quality products it is gaining today a net profit of more than 4 crores. 5) The plant has developed so far & has got its goodwill in the market, but these years the company is not paying attention towards the expansion of the plant. 6) It is found that the milk handling cost is very high, consumer has to pay almost twice the farm price.
7) Gokul has standard & quality products & its successful in maintaining the international standards of milk & milk products.
SUGGESTIONS :1) Global market for Gokul:

As Gokul is a well developed company it must think of expanding its market globally as the world is shrinking rapidly with advent of faster communication & financial flow.
2) Increase in milk collection capacity:

I) Provide loan facilities to farmers to purchase the buffalos. II) Give awards to those members who supply maximum amount of milk to the society consistently.
3) Reduce down the errors during milk collection:

Manual system of milk collection should replace by computerized automatic milk collection system.
4) Reduce number of societies:

There should be one society per village for milk collection to reduce the time and contamination of milk.
5) Machine milking:
All the milk animals of the village should be followed to avoid contamination and save the time of milk collection.
SUMMARY OF THE ANNUAL REPORT 2008-09

PERFORMANCE HIGHLIGHTS
The following table explains the performance highlights of The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., as on 01-08-2007. SOURCE 1) Gokul 2) Borawade 3) Linganur 4) Tawarewadi 5) Gogave TotalBUFFALO MILK 91125 490171 53802 35550 21058 255183 COW MILK 69431 29656 13151 9910 9268 132211 TOTAL 160556 78727 66953 45460 29367 387394
TOTAL SALE OF MILK = 5,84,083
1) PRODUCTS MANUFACTURING CAPACITY

Sl.No
1 2 3 4 5 6 7 8
PRODUCTS
Skimmed Milk Powder Butter Ghee Table Butter Shrikhand Curd Paneer Lassi
CAPACITY (in MTPD)

40 24 06 03 01 02 01 02
MTPD=Metric Ton per Day
2) PRODUCTION AND SALE OF MILK PRODUCTS (2005-06) Sl.No. 1 2 3 4 5 PARTICULARS Butter (WB/YB) S.M.P Ghee Table Butter Shrikhand PRDUCTION (MT) 2,635 1,674 361 76 64 SALE (MT) 1,249 555 401 75 55
MT=Metric Ton SMP= Skimmed Milk Powder
3) STATIONWISE MILK SALES (2008-09)

LPD=Litres per Day
Sl.No. 1 2 3 4 5
PARTICULARS Local Sale Pune Mumbai Goa Bulk sale Total
MILK SALE (LPD) 1,10,000 55,000 4,30,000 5,000 22,000 6,22,000
4)
FINANCIAL STATUS (2008-09)

Sl.No.
1 2 3 4 5 6 7 8
PARTICULARS
Authorized Share Capital Paid Up Share Capital Net Profit Turnover Reserve Funds Fixed Deposit Fixed Assets Long Term Loans
Rs. (in Lakhs)

51,000 3571 600 70200 3447 4073 3356 862
MANUFACTURING & TRADING ACCOUNT

FOR THE YEAR ENDED 2008-2009
PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.)
To, opening balance To, purchases To, manufacturing expenses To, vehicle To, wages and salaries To, Water & Electricity To, selling and distribution
30,57,23,573.00 By, sales 4,37,49,86,995.23 By Mahalaxmi CattleFeed & Milk Products 1,63,43,14,264.76 29,86,29,052.18 5,69,19,585.29 2,63,28,613.67
5,79,54,85,555.60 1,36,80,24,494.81
83,51,904.44 To, bank loan (interest) To, Testing & Packing Materials To, Can Washing & Repairs To, Insurance 87,74,214.43 To, Animal Husbandry Charges 92,48,132.14 To, Depreciation 47,62,17,273.74 To,gross profit 14,75,53,63375 91,59,005.72 By, closing stock 12,86,083.00 30,50,54,635.36
TOTA L
7,46,85,64,685.77
7,46,85,64,685.77
PROFIT & LOSS ACCOUNT

FOR THE YEAR 2008-09 PARTICULARS R s .
Salary & Bonus Other Expenses
Interest Bank Commission Printing & Postage Rent Water & Electricity Advertisement Insurance Audit Fees Traveling Allowance Fuel Charges Electrical Repairs Advocate Fees & Court Expenses Machinery Repairs Miscellaneous Expenses Education Fund Depreciation Veterinary & Medicine Vehicle Rent Freight Charges Sales Tax, Service Tax, Fringe Benefit Tax Women ledership / Gokul Gram Meeting Charges
Rs.
PARTICULARS
Rs.
Rs.
32,18,84,461.34 Sales Profit

1,00,62,911.84 4,22,174.54 63,49,607.94 8,38,914.00 5,49,79,642.89 91,09,424.24 52,12,579.87 50,42,857.00 87,00,307.50 85,17,358.94 1,05,01,354.26 28,38,058.65 1,83,53,037.27 29,83,063.81 2000.00 37,11,473.93 1,04,63,195.30 115,19,259.43 16,14,291.95 23,75,286.00 28,53,060/51 3,38,923/90 Interest 1) Nationalized Bank 2) Co-op. Society Dividends
47,62,17,273.74
45,70,865.45 3,18,97,753.0
3,64,68,818.45 24,00,950.00 15,000
Agriculture Income 60,85,534.73 Scrap Material Sale 2,35,84,812.20 Animal Husbandry _ Sales Tax 10,67,957.04 NDDB Reimbursement
Profit
5,40,96,600 .05
Total
54,58,40,146.16
54,58,40,146.16
BALANCE SHEET
1-April-2005 to 31-March-2006
LIABILITIES
Opening Balance Opening Share 1) Dairy Society 2)Individual Members Deposits Reserves & Other Funds Loan 1) NDDB 2) SECOM 3) Sales Tax Deferral Loan Funds Creditors Debenture 8,94,15,162.00 9,49,38,987.23 19,49,62,261.3 35,71,34,700.0 10100.00 35,71,44,800.0 34,53,91,554.69 Investments 1) Reserve Fund 2) Fixed Deposit 3) Purchase of Co-op. Debtors Fixed Assets 1)Building under Construction 2)Machinery under Installation Stock in Trade 5,21,49,890.08 33,42,83,467.0 2,47,12,000.0
Rs.
Rs.
51,00,00,000.0
ASSETS
Cash in Hand Cash at Bank
Rs.
Rs.
1,05,19,761.42 32,50,43,200.00
41,11,45,357.08 5,00,00,000
30,61,75,810.0 4,42,84.012.6 35,04,59,823.03 40,33,93,850.43
37,93,16,410,.57 1035035.00 1,70,70,742.89 349246443.94 48,66,71,070.5
Profit for the year
5,40,96,600.0
TOTAL
1,65,05,90,876
1,65,05,90,876.

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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 1

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

INTRODUCTION TO DAIRY INDUSTRY

Garden city college , Bangalore 2

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 3

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

Details about NDDB

Garden city college , Bangalore 5

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

COOPERATIVE DAIRY UNIONS AFFILIATED TO NDDB

Garden city college , Bangalore 6

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 7

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 9

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 10

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

15) Annual Turnover

: Rs. 425 Crores (FI-2006)

4.2 NATURE OF THE BUSINESS CARRIED

Garden city college , Bangalore 11

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 12

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Supplying to the sales outlet

Garden city college , Bangalore 14

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 15

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

4.5 AREA OF OPERATION - REGIONAL

4.6 OWNERSHIP PATTERN.

Garden city college , Bangalore 16

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

4.7 COMPETITION ANALYSIS

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

Garden city college , Bangalore 18

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

4.8 INFRASTRUCTURAL FACILITIES.

-Facilities to the Rural People

a) SOCIETY BUILDING PROGRAMME

b) CLEAN MILK PRODUCTION ACTIVITIES

182 3008 3,649 1,60,501

Garden city college , Bangalore 19

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

c) SUBSIDIES PROVIDED TO THE MEMBERS

d) GRANTS POVIDED TO DCSs AND FARMERS TILL 2008-09.

Training for awareness of law Training for health awareness

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

-Infrastructural Facilities to employees

4.9 ACHIEVEMENTS OR AWARDS

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

1) NATIONAL PRODUCTIVITY COUNCIL AWARD (1st PRIZE)