gokul project 2010
TRANSCRIPT
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
INDUSTRY PROFILE
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
India’s 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
Japan’s $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 1970-
71 to ----- in 2006-07.
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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 Gujarat’s 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 Polson’s 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 Producer’s 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.
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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 self-
sufficiency 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 India’s 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 Producer’s 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 Producer’s 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 Producer’s 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 Producer’s Federation Ltd [TCMPF]
15. West Bengal Cooperative Milk Producer’s 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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
COMPANY PROFILE
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
COMPANY PROFILE
1) Name : The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur
(GOKUL DAIRY)
2) Location : B-1, M. I. D.C. Gokul Shirgaon, Kolhapur- 416234. Maharashtra, India
3) Registered Office : VIKAS KAKSH, TARABAI PARK, KOLHAPUR, Maharashtra
4) Establishment : 16th March, 1963
6) Constitution : Co-operative Society
7) Working Hours (Tuesday to Sunday) : 8:15 AM to 6:15 PM
8) Weekly Holiday : Monday
9) Phone Number : (0231) 267 23 11 (5 lines)
10) Fax : (0231) 267 23 74
11) Telex : 195/248
12) Gram : DUDH SANGH
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
13) Website : www.gokulmilk.coop
14) Email: Chairman: [email protected] Managing Director: [email protected]
Sales: [email protected]
15) Annual Turnover : Rs. 425 Crores (FI-2006)
4.2 NATURE OF THE BUSINESS CARRIEDThe 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 Co-
operative 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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
i. Chilling
ii. Pasteurization
iii. 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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)
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 today’s 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 Co-
operative 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,
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 district’s 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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 No. OF PRAGRAMMES No. OF PARTICIPANTS
Men Training 43 2,636
Women Training 39 3,220
Committee Visioning Programme 48 545
Cleanliness Contests 28 674
Sahakarmunch Programme 42 904
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
Number of Routes Covered 182
Number of DCS covered 3008
Number of programmes organized 3,649
Number of participants 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 Particulars Rs.
1 Purchase of Cow & Buffalo 5000-7000 per animal
2 Society Building 22000-35000
3 Computerization 20000
4 Purchase of Generator 4000
5 Bore well 10000
6 Purchase of Milko Tester 3000
7 Women Excursions 15 per woman per day
8 Fodder plot(100% verification of plots) -
9 Veterinary Services(Emergency round the
clock regular once in the week)
-
10 Training at MU Training Center(25%
concession in fee)
-
d) GRANTS POVIDED TO DCSs AND FARMERS TILL 2008-09.
Grant Item Nos. Rs (in Lac)
Buffalo Purchase 902 1120
Cow Purchase 92 330
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
DCS Building 439 112
Bore well 26 26
Computers 623 212
Generators for DCSs 468 19
Battery for DCSs 73 1
Milking Machines 13 4
Women Visits 41 1
Total Amount- 1826
Thus, these above all are the activities and facilities provided by The Kolhapur District Co-
operative 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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 Co-
operative 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 1988-
99. 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 AWARDSThe image on the right denotes the Merit Certificate award, this was won for the following years
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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:
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 sizes
1 Litre & 500 m.l. Pouches
STANDARDISED MILK
Fat 6.5 %
SNF 9.2 %
Rate per Litre
Rs. 20/- Local
Rs. 20/- for Pune, Kokan & Belgaum
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 %
RateRs. 17/- for Mumbai, Thane & Raigad District Rs. 16/- for Kokan & Belgaum
DOUBLE TONNED MILK
Fat 1.5 %
SNF 9.1 %
Rate Rs. 15/- for Mumbai, Thane & Raigad District.
2) SHRIKHAND
Brand Gokul
VarietyBadam Pista
Mango, Ilaichi, Nutmeg
Fat 7 %
Sugar 40 %
Protein 9 %
Packing Sizes Rates per K.g.
500 gm. Poly Bag Rs. 94/- (only for Ilaichi)
250 gm. Poly BagRs.100/- (only for Ilaichi)
500 gm. Cup Rs. 110/-
250 gm. Cup Rs. 120/-
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
100 gm. Cup Rs. 130/-
3) GHEEGhee 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.
SL.NO. Particulars INSTRUCTIONS1 Product Name “Gokul Ghee”2 Usage It is ready to consume or it can be used as an
ingredient in making various food products.3 Shelf Time Six months from the date of manufacture4 Market All over India5 Labeling Instructions Batch number, Date of manufacture, Best
before date, Box number, Workers code number, Gross weight, Vegetarian, logo and AGMARK label.
6 Distribution Covered Vehicles7 Consumer General population, Confectionary and any
food industry.8 Storage Condition At ambient temperature9 Scope of Hazards Biological: None,
Chemical: Rancidity, Cleaning and Sanitizing chemical residues.Physical: Leaching of tin and possibility of
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Brand Gokul
Packing sizes
1 Ltr. Pouch
500 gm. Pouch
Fat 99.7 %
Moisture 0.3 %
Rates Rs.280/- per 1 Ltr.
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
pieces.
4) BUTTER
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
B) WHITE/YELLOW BUTTER
Brand Gokul
Packing size20 K.g. Box
Fat 83 %
Curd 1 %
Cooking ButterBrand Gokul
Packing size 500 gm.
Fat 78%
Curd 2%
SL.NO. QUERIES INSTRUCTIONS
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Brand Gokul
Packing sizes500 gm. Pack
100 gm. Pack
Fat 80.5 %
Moisture 16 %
Salt 2.5 %
Curd 1 %
RatesRs.240/- per K.g.
Rs.250/- per per K.g.
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
1 Product Name Gokul Table Butter & White/Yellow Butter2 Usage a) Table Butter: For Direct consumption.
b) White/Yellow Butter: It can be used to preparation of Ghee and other confectionary products.
3 Shelf Time a) Table Butter: 6 months from the date of manufacture.b) White/Yellow: 12 months from the date of manufacture.
4 Market All over India.5 Labeling Instructions6 Distribution Covered vehicles7 Consumer a) Table Butter: General Population
b) White/Yellow Butter: Institutional Sale.8 Storage Condition Below 10 C9 Scope of Hazards Biological: Yeast & mold, coli forms.
Chemical: Cleaning & sanitizing & printing ink.Physical: Hair, or any other physical matter like polythene pieces etc.
6) SKIMMED MILK POWDER
Brand Gokul
Packing sizes
1 K.g. Poly Bag
500 gm. Poly Bag
100 gm. Poly Bag
25 Kg. in Bag
Fat 1.0 %
Moisture 3.5 %
Protein 35 %
Carbo-hydrates 51 %
Minerals 7 %
Rates 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)
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
Production process of The Kolhapur District Co-operative Milk Producers Union Ltd.,
(Gokul Dairy) has the following workflow model.
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.
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DCS
Fresh Liquid Milk
Chilling
Storing
Pasteurization
Storing
Packing
Dispatching
Sample Testing
Fat and SNF
Separation
Homogenization
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
5.1.2) SUB-STRUCTURE OF THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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Board of Management
Managing Director
Procurement & Input
Deputy Manager
Account Officer
Account Assistant
Grade I, II, III
Supredent
Administration
Clerks Compute
r Operator
sAttainder
Security Officer
Assistant Security Officer
Security Guards
Canteen
Cooks
Manager
Deputy Manager
P & I
AssistantP & I
Extension Officer
Deputy Manager
F & F
Agriculture
Officer
Assistants
Deputy Manager Veterinar
y
Assistant Manager
GradeI, II, III
Administration
Assistant Manager
Assistants
Grade I
Helper
Finance Purchase
Veterinary Assistants
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
The following organizational chart represents the sub-structure detailing with each functional
discipline.
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
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Board of Management
Managing Director
Officer
Assistants
Assistants Grade I,
II, III
Clerks
Manager
AssistantsManager
Marketing Officer
M I S Marketing Manager Dairy
Helpers
Dairy Superviso
rs
Operators
DeputyManager
(Production)
AssistantsManager
Technical Officer
Helpers
Technicians
Helpers
Assistant Manager
Engineering
Technical Officers
Dairy Superviso
rsI, II, III
Helpers
Quality Control
Technical Officer
Lab Technicia
ns
Helpers
Stores
Stores Officer
Stores Assistant
Drivers
Transport
Supervisor
Clerks
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
company’s 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 Chairman
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
2) Shri. Anandrao Patil (Chuyekar) Director
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
DEPARTMENTS OF THE ORGANISATION
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 DEPARTMENTProduction department is the main department wherein the raw material is converted into
finished into products. At Gokul production department is well planned & adequately
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 tempo’s 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. UNLOADINGThe cans were unloaded is called as dock station. The cans are unloaded from the vans
manually.
3. ORGANOLEPTIC TESTThis 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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. PESTEURIZATIONThis 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. PACKINGOnce 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
SKILLSThe company’s 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 company’s 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 company’s 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 employee’s skills and techniques through motivating them and
giving proper training to them also through giving proper working condition.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
The marketing department is the nearest of any organization. In today’s 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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 competitor’s rates and quality and
also will consider customer’s 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 DEPARTMENTProcurement 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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,
supplier’s 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
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
VI) LABORATORYThe 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 DEPARTMENTThe 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:
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
SWOT ANALYSIS
SWOT ANALYSIS
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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.
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STRENGHTS
OPPORTUNITES
THREATS
WEAKNESSES Internal
External
THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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:
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
SUMMARY OF THE ANNUAL REPORT2008-09
PERFORMANCE HIGHLIGHTS
The following table explains the performance highlights of The Kolhapur Zilla
Sahakari Dudh Utpadak Sangh Ltd., as on 01-08-2007.
SOURCE BUFFALO MILK COW MILK TOTAL
1) Gokul 91125 69431 160556
2) Borawade 490171 29656 78727
3) Linganur 53802 13151 66953
4) Tawarewadi 35550 9910 45460
5) Gogave 21058 9268 29367
Total- 255183 132211 387394
TOTAL SALE OF MILK = 5,84,083
1) PRODUCTS MANUFACTURING CAPACITY
Sl.No PRODUCTS CAPACITY (in MTPD)
1 Skimmed Milk Powder 40
2 Butter 24
3 Ghee 06
4 Table Butter 03
5 Shrikhand 01
6 Curd 02
7 Paneer 01
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
8 Lassi 02
MTPD=Metric Ton per Day
2) PRODUCTION AND SALE OF MILK PRODUCTS (2005-06)
Sl.No. PARTICULARS PRDUCTION (MT) SALE (MT)
1 Butter (WB/YB) 2,635 1,249
2 S.M.P 1,674 555
3 Ghee 361 401
4 Table Butter 76 75
5 Shrikhand 64 55
MT=Metric Ton
SMP= Skimmed Milk Powder
3) STATIONWISE MILK SALES (2008-09)
LPD=Litres per Day
Sl.No. PARTICULARS MILK SALE (LPD)
1 Local Sale 1,10,000
2 Pune 55,000
3 Mumbai 4,30,000
4 Goa 5,000
5 Bulk sale 22,000
Total 6,22,000
4) FINANCIAL STATUS (2008-09)
Sl.No. PARTICULARS Rs. (in Lakhs)
1 Authorized Share Capital 51,000
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
2 Paid Up Share Capital 3571
3 Net Profit 600
4 Turnover 70200
5 Reserve Funds 3447
6 Fixed Deposit 4073
7 Fixed Assets 3356
8 Long Term Loans 862
MANUFACTURING & TRADING ACCOUNTFOR THE YEAR ENDED 2008-2009
PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.)
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
To, opening balance
To, purchases
To, manufacturing expenses
To, vehicle
To, wages and salaries
To, Water & Electricity
To, selling and distribution
To, bank loan (interest)
To, Testing & Packing Materials
To, Can Washing & Repairs
To, Insurance
To, Animal Husbandry Charges
To, Depreciation
To,gross profit
30,57,23,573.00
4,37,49,86,995.23
1,63,43,14,264.76
29,86,29,052.18
5,69,19,585.29
2,63,28,613.67
83,51,904.44
14,75,53,63375
91,59,005.72
12,86,083.00
87,74,214.43
92,48,132.14
47,62,17,273.74
By, sales
By Mahalaxmi Cattle-Feed & Milk Products
By, closing stock
5,79,54,85,555.60
1,36,80,24,494.81
30,50,54,635.36
TOTAL
7,46,85,64,685.77 7,46,85,64,685.77
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
PROFIT & LOSS ACCOUNTFOR THE YEAR 2008-09
PARTICULARS Rs.
Rs. PARTICULARS Rs. Rs.
Salary & Bonus
Other Expenses Interest Bank Commission Printing & Postage Rent Water & Electricity Advertisement InsuranceAudit FeesTraveling AllowanceFuel ChargesElectrical RepairsAdvocate 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
Profit
32,18,84,461.34
1,00,62,911.844,22,174.54
63,49,607.948,38,914.00
5,49,79,642.8991,09,424.2452,12,579.8750,42,857.0087,00,307.5085,17,358.94
1,05,01,354.26
28,38,058.651,83,53,037.27
29,83,063.812000.00
37,11,473.931,04,63,195.30115,19,259.4316,14,291.95
23,75,286.00
28,53,060/513,38,923/90
5,40,96,600.05
Sales Profit
Interest 1) Nationalized Bank 2) Co-op. Society
Dividends
Agriculture Income
Scrap Material Sale
Animal Husbandry
Sales Tax
NDDB Reimbursement
45,70,865.453,18,97,753.0
47,62,17,273.74
3,64,68,818.45
24,00,950.00
15,000
60,85,534.73
2,35,84,812.20
_
10,67,957.04
Total 54,58,40,146.16 54,58,40,146.16
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
BALANCE SHEET
1-April-2005 to 31-March-2006LIABILITIES Rs. Rs. ASSETS Rs. Rs.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
Profit for the year
35,71,34,700.0
10100.00
8,94,15,162.009,49,38,987.2319,49,62,261.3
51,00,00,000.0
35,71,44,800.0
34,53,91,554.69
37,93,16,410,.57
1035035.00
1,70,70,742.89349246443.94
48,66,71,070.5
5,40,96,600.0
Cash in Hand
Cash at Bank
Investments 1) Reserve Fund 2) Fixed Deposit 3) Purchase of Co-op.
Debtors
Fixed Assets 1)Building under Construction2)Machinery under Installation
Stock in Trade
5,21,49,890.0833,42,83,467.02,47,12,000.0
30,61,75,810.0
4,42,84.012.6
1,05,19,761.42
32,50,43,200.00
41,11,45,357.08
5,00,00,000
35,04,59,823.03
40,33,93,850.43
TOTAL 1,65,05,90,876 1,65,05,90,876.
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THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.
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