Report on Diary Industry in India

INTRODUCTION:
This industrial review project has been conducted by Chethan Prasad (1111105), Jose Alex (1111107) and Nagarjun Karnatakam (1111108) as per the requirements of our course based on the guidelines given to us. We studied the basics of Dairy Industry and the major players in this industry. We were given three companies namely Aavin, Amul and Nandini. We conducted a detailed research on each of these companies by finding information regarding their market share, growth rate of the company, turn over, product profile etc. We have obtained information mainly from secondary methods of data collection such as the internet, company brochures etc. We also conducted a comparative analysis of the companies using the SWOT and 7s model, with which we were able to draw a conclusion on the status of the company and the industry.
INDIAN DAIRY has been involved in the Dairy Business since many years in Delhi, India. INDIAN DAIRY take pride in introducing as one of India’s leading Manufactures, Exporters and Suppliers of wide range of Dairy Products, We at INDIAN DAIRY have shown a new way of living- a healthy way of Dairy Industry for Dairy Business to improve the way of Living. INDIAN DAIRY is on the edge of ISO 22000:2005and HACCP Certified Company for further growth in our core competency areas - Dairy Products Manufacture, Exporter and Supplier in Delhi, India. We have extensive range of Milk Product and Dairy Product catering to people of all age and food Industry. INDIAN DAIRY are continuously striving between Technology, System, and Human Recourse to provide Dairy Product and Dairy Business that meet the quality of Milk Product, performance and pride aspiration of Customers for Dairy Industry.
INDIAN DAIRY, one of the front runner of Manufacture & Exporter, supplier of Skimmed Milk Powder, Desi Ghee, Condensed Milk, Casein, Full Cream Milk Powder, Dairy whitener, Cheese, Cheese Powder, Cheese mozzarella, Dairy Creamer, Butter Milk Powder, Dermilized Whey Powder, Sweet Cream, Whey Protein, Dairy Creamer Palm kernel Oil, Dairy Mix, Non-Dairy Creamer , Spray Milk Powder, Evaporated Milk , Malt dextrin, Protein Powder, Fat Fitted Powder, White Butter, Lactose (Edible and Parma Grade), Glucose, Dematerialized Whey Powder and all kind of Dairy Products, has emerged as the indubitable winner of Dairy Industry.
NEW DELHI: The value of the Indian dairy industry is expected to touch Rs 5 lakh crore by 2015, with milk output pegged at 190 million tones at the end of the period, industry chamber ASSOCHAM said today.
According to an Associated Chambers of Commerce and Industry of India (ASSOCHAM) study, the Indian dairy industry is growing at the rate of 10 per cent per annum.

"Milk production is likely to reach about 190 million tonnes in 2015 from current level of about 123 million tonnes," the ASSOCHAM study, titled, 'Indian Dairy Industry: The Way Ahead', said.
India -- the world's largest milk producer -- accounts for around 20 per cent of global milk production, with most of it consumed domestically, it added.
In India, about 60 per cent of milk is consumed in liquid form, while the remaining 40 per cent is used in the form of butter, clarified butter (desi ghee), cheese, curd, paneer, ice cream, dairy whiteners and traditional sweets.
"Growing at about 10 per cent annually, the Indian dairy industry is predominantly controlled by the unorganised sector, which accounts for nearly 85 per cent," ASSOCHAM Secretary General D S Rawat said in a statement.
About eight crore rural families across India are engaged in dairy production and the rural market consumes over half of the total milk produced, he added.
According to the study, an upward spiral in prices, the lack of proper infrastructure like cold storages and absence of a transparent milk pricing system are affecting retail consumption of milk and leading to escalating milk prices in the domestic market.
The lack of fodder, resulting in low yield from cattle, is another problem affecting the sector, it added.
Despite overall food inflation easing marginally to 10.63 per cent for the week ended November 5, milk prices grew at a faster pace of 10.74 per cent during the period.
The private sector can play a pivotal role in reducing the cost of milk production by employing advanced techniques to enhance productivity, providing breeding facilities for cattle and by developing processing and marketing infrastructure, Rawat said.
Andhra Pradesh, Bihar, Haryana, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh are the leading milk producing states in the country. History
India is the highest milk producer in the entire globe. India is well known as the ‘Oyster’ of the global dairy industry, with opportunities galore for the entrepreneurs globally. It might be dream for any nation in the world to capitalize on the largest and fastest growing milk and mil products' market. The dairy industry in India has been witnessing rapid growth with liberalization. As the economy provides good opportunities for MNCs and foreign investors to release the full potential of this industry. The main objective of the Indian Dairy Industry is to manage the national resources in a manner to enhance milk production and upgrade milk processing using innovative technologies

The crossbred technology in the Indian Dairy Industry has further augmented with the viability of the dairy units by increasing the milk production per animal. Then subsequently milk production has also increased at an exponential rate while the benefits of an increase in milk production also reached the consumers from a relatively lower increase in the price of milk. The favorable price environment for milk producers for the Dairy Industry in India however appeared to have weakened during the 90's, a decline in the real price of milk being noticed after the year 1992. And then slowly regained it is glory after 1992 to till now.
In India dairying from very much earlier is regarded as an instrument for social and economic development. The country’s milk supply comes from millions of small producers, who are dispersed throughout the rural areas. All these farmers maintain an average herd of one or two milch animals, comprising cows and/or buffaloes. Mostly ample labour and a small land base encourage farmers to practice dairying as an occupation subsidiary to agriculture. As income from crop production is seasonal instead dairying provides a stable which is a year-round income and also an important economic incentive for the small farmer.
Brief
India had tremendous milk production in 40 years and has become the world’s largest milk-producing nation with a gross output of 84.6 million tons in 2001. The Indian Dairy Industry has achieved this strength of a producer-owned and professionally-managed cooperative system, despite the facts that a majority of dairy farmers are illiterate and run small, marginal operations and for many farmers, selling milk is their sole source of income. More than 10 million dairy farmers belong to 96,000 local dairy cooperatives, who sell their products to one of 170 milk producers’ cooperative unions who in turn are supported by 15 state cooperative milk marketing federations.
In India dairy business has been practiced as rural cottage industry over the years. Semi-commercial dairy started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the 19th century. Since Independence this Industry has made rapid progress. A large number of modern milk and milk product factories have since been established.The organized dairies in India have been successfully engaged in the routine commercial production of pasteurized bottled milk for Indian dairy products.
The growth of Indian Dairy Industry during the last three decades has been impressive, at more than 5% per annum; and in the 90's the country has emerged as the largest producer of milk. This is not a small achievement when we consider the fact that dairying in India is largely stringent that farmers in general keep dairy animals in proportion to their free crop and also are available for family labor with little or no purchased inputs and a minimum of marketed outputs. The existence of restrictive trade policy milk in the Diary Industry and the emergence of Amul type cooperatives have changed the dairy farming practices in the country. Farmers have gained the favorable price for their milk and for their production which was essentially a self-reliant one is which is now being transformed into a commercial proposition.
In India Milk production is dominated by small and marginal land-holding farmers and also by landless labourers who in aggregate own 70% of the national milch animal herd. And as the crop production on 78% of the agricultural land still depends on rain, which is prone to both drought and floods, rendering agricultural income is very much uncertain for most of the farmers. Dairying, as a subsidiary source of income and occupation, is real relief to most of the farmers in the society. Usually one or two milch animals enable the farmers to generate sufficient income to break the vicious subsistence agricultural-debt cycle.
The Operation Flood which is the successful Indian dairy development programmed has analyzed that how food aid can be utilized as an investment in building the type of institutional infrastructure that can bring about national dairy development. Programmes like this, with similar policy orientations, may prove to be appropriate to dairy development in in India.
India in the early 1950's was commercially importing around 55000 tonnes of milk powder annually to meet the urban milk demand. Most of the significant developments in dairying have taken place in India in this century only.

COMPANY PROFILE Aavin Tamilnadu co-operative milk producers federation limited was construed on 1st February 19 . Federation is procuring, processing and marketing of milk and milk products. Federation has implemented the diary development activities under operation flood programmed with a financial and technical assistance of national diary development board.Chennai metro is having 4 diaries. Milk procurement, processing and distribution are being attended by the didstrict unions in the respective areas. Federation is charring out improvements of milch animals

1.central diary, madhavaram milk colony, Chennai-600 051 capacity of 3.0 llpd
2.ambattur diary, channi-600 098 with capacity of 4.0 llpd
3.sholinganallur diary, Chennai -600 119 with a capacity of 4.0 llpd all the 4 diaries are carrying out processing, packing and distribution of the milk and milk products as per HACCP, MMPO and NDDB norms.ambattur diary is producing sterilized flavored milk in four flavors.productsdiary,ambattur is preparing the foiling milk products with the capacity of 12000 liters per day. Milk khoa; Mysorepak, gulabjamun, khalakand butter milk, lassie, curd, icecream
HISTORY
The Dairy Development Department was established in Tamil Nadu in the year 1958 to oversee and regulate milk production and commercial distribution in the state. The Dairy Development Department took over control of the milk cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers Federation Limited in the year 1981.
On February 1, 1981, the commercial activities of the cooperative were handed over to Tamil Nadu Co-operative Milk Producers' Federation Limited which sold milk and milk products under the trademark "Aavin".
With many private companies entering the field of dairy, the Tamil Nadu government is giving high priority to improve the performance of the cooperatives. Tamil Nadu is one of the leading states in India in milk production with about 14.5 million liters per day.

The total number of employees in Aavin are 32870 as per the reading of 2012.The Tamilnadu Aavin Engineers Association has appealed to Chief Minister Jayalalithaa to implement the recommendations of the one-man commission by revising scales of pay for the qualified diploma engineers and re-designating technical categories.
In a statement, State president of the association K.Gopinath pleaded that monetary benefit should be given to such persons with effect from August 1, 2010 immediately. He urged the government to promote all the 30 diploma engineers from the post of junior manager (maintenance) to deputy manager since the promotion for this post had not been given for more than two decades.
At present, the retired Aavin employees are getting only a monthly pension of Rs 1,800. The government should convert the present Employees Provident Fund pension to General Provident Fund pension for those who have joined before 2004.
Chennai: The state-run Aavin is all set to see a turnaround with the Tamil Nadu government deciding to hike prices of milk. But Aavin employees continue to get a raw deal.
When SethuMadhavan first received his appointment order from Aavin through the employment exchange in 1974,he was happy since he would take home a monthly salary of about Rs 200,which was a comfortable amount those days.After putting in more than 35 years of service,and rising to the level of a manager,he found to his dismay that his monthly pension was only Rs 1,750.
Central Dairy is situated in North Chennai and Commissioned during January 1963 (20.01.1963) at a total outlay of Rs.44/- Lakhs to Process and Sell Milk to the city consumers. The foundation was laid on 15.10.1959 by Shri.S.K.Patil, Minister for Food and Agriculture, Government of India. The Plant and Machineries were gifted by the Government and the people of New Zealand under Colombo plan. Central Dairy started the operations under the control of Madras Milk Dairy Project which was converted as Dairy Development Department under the control of Commissioner for Milk Production and Dairy Development Department. Commissioner for Milk Production and Dairy Development is also the Registrar of Milk Co-operatives. The Tamilnadu Dairy Development Corporation was formed under Companies Act on 01.07.1972 and taken over the Dairy Units, Transport and other commercial activities of Dairy Development Department. Madurai Dairy was taken over by Tamilnadu Dairy Development Corporation w.e.f. 01.07.1974. Tamilnadu Dairy Development Corporation has given birth to TCMPF Ltd.

The Amul Pattern consists of three tiers:
Village level Producers’ Co-operative Society
District Level Milk Co-operative Producers’ Union
Achievements:-
1. Milk Sales increased from 77,000 LPD in 2002 to 1,80,000 LPD in 2008.
2. Milk Procurement also increased from 70,000 LPD in 1991 to 2, 22,430 LPD in 2008.
3. Awarded as the Best Milk Co-operative Union in Tamilnadu for the year 2005.
4. Awarded in the All India No. 1 Union in terms of growth in sale of milk. In NDDB’s annual report 2006
ANIMAL BREEDING In Salem milk union, 591 AI centers are functioning in cluster manner covering all the DCS for AI activities. Frozen semen is purchased from Nucleus Jersey Stud Farm, TCMPF Ltd., Ooty and BFSS, TCMPF Ltd, Erode for cattle and buffalo respectively at the rate of Rs 10/- per dose. AI facility has been extended at the doorstep of the farmers and thereby the conception rate is improved. We have implemented the Artificial Insemination Monitoring System since 2001 and we have computerized the AI activities. Based on the report generation, the AI performance is monitored to improve the breeding efficiency.
Progeny Testing Scheme in cattle and buffaloes is carried out in 70 DCS to select the proven bulls through Dairy Herd Improvement Programmed Action, TCMPF Ltd., Chennai. Calf rally is conducted and the prizes are given to the selected best calves to motivate the farmers to rear their calves with utmost care.
ANIMAL HEALTH As a part of Animal health management, 16 nos. of regular Veterinary units and (fortnight route) and Emergency units ( round the clock) are functioning to cater to the needs of the health coverage to all the milch animals of DCS members. Infertility camps at the society level and the breeding problems in the animals are treated. As a preventive measure, the animals are vaccinated against FMD to protect the animals and milk loss.
FEED AND FODDER We are purchasing 200 metric tones (average) of cattle feed per month from cattle feed plant Erode and supplied to the DCS. To meet out the green fodder requirement of mulch animals our milk union is supplying the fodder by way of cultivating the Co3 fodder/slips for distribution to the farmers throughout the year. Apart from union land, farmers land also being used for fodder cultivation and propagation and totally 2700 acres of and has been brought under fodder cultivation. Farmers are educated on Ration Balancing programmers to improve the Feed conversion ratio in the animals. For Dry fodder management, urea treatment of paddy straw is carried out to preserve the same during surplus season.
Training centre Salem union Training Centre is imparting various training programmed to the DCS staff and milk producers of Salem , Erode, Coimbatore and Ooty Unions.
Marketing
The Marketing network is managed with 9 Milk Marketing offices, 491 agents for milk and 11 for products and through the Federation throughout the country and abroad.

Year
Sales Turnover
Rs. in lakhs
1995-96
8326.36
1996-97
7810.94
1997-98
7869.65
1998-99
9803.08
1999-2000
11168.15
2000-01
11365.92
2001-02
11521.89
2002-03
12058.42
2003-04
15375.97
2004-05
16873.86
2005-06
17065.73
2006-07
17323.06

Aavin is a private equity and venture capital firm specializing in late stage, growth financing, management buyouts, expansion capital, turnarounds, acquisitions, recapitalizations transactions, and ownership changes in middle market and mature companies. It prefers to invest in medical services and devices, financial services, consumer products & services, telecommunications, manufacturing and distribution, industrial products and services, and computer and software. The firm seeks to invest in companies based in the Middle American region of the United States. It typically invests between $500,000 and $3 million per portfolio company with initial rounds of investment between $1 million
CHENNAI: Faced with losses in 2004-05 after two consecutive years of profits, Aavin, a government-controlled body in the dairy sector, is making all-out efforts to remain competitive.
Aavin, the brand of products of the Tamil Nadu Cooperative Milk Producers' Federation (TNCMPF), has commenced exporting milk products. Singapore was its first destination. In the domestic market, it is aiming to capture a major share in northern and northeastern States in addition to fine-tuning its on-going efforts in the south. Cost-cutting and redeployment of manpower are the other measures carried out by Aavin.
The pressure is more on the government body to improve its marketing and strengthen its sales network because Aavin recorded a loss of about Rs. 1.3 cores in the just-concluded financial year. Officials concede that the chief reason for the loss is the increase in the procurement price per liter. In June last, the rate of cow's milk was hiked from Rs. 9.50 to Rs. 10.50 and that of buffalo milk from Rs. 11.44 to Rs.12.50. The Government also decided not to effect any change in the retail price of liquid milk.
Officials recalled that in 2002-03, Aavin ended the eight-year consecutive run of losses by earning a profit of about Rs.1.5 cores. The next year, the profit went up to Rs. 17.2 cores. The accumulated losses were brought down to about Rs. 58 cores in 2004-05 from Rs.76 cores in 2001-02.
Bid to regain market share
The organization is also experiencing pressure on account of competition. After the entry of private players in the dairy market in the early 1990s, its share went down steeply. For instance, in 2001, Aavin's share accounted for 40 per cent of the Chennai market. "Now, we are selling 8 lakh liters a day, representing 60 per cent of the market," the officials say. A target of 9.1 lakh liters a day has been fixed for the current year
Exports
As part of its efforts to tap new markets, Aavin appointed an agent for Malaysia and Singapore. Since December last, the body exported 50,000 litres of ultra heat-treated (UHT) milk, 1,000 litres of ghee and 1,250 kg of skimmed milk powder (SMP) to Singapore.
At the national level, Aavin has been selling milk and SMP to Mother Dairy in Delhi and Kolkata besides its sister organizations in Andhra Pradesh and Kerala.
Aavin stepped up its sale of ghee and SMP in recent years. Compared to the annual average sale of ghee of 3,370 tones during 1996-2001, the organization recorded 5,900 tones in 2001-05. In respect of SMP, the annual average sale went up from 2,640 tones to 9,800 tones.
The Government has permitted Aavin to take a loan of about Rs. 35 cores from the Tamil Nadu Urban Finance and Infrastructure Development Corporation to tide over any financial problem, the sources add.and some of the major competitors for aavin is Amul ,Nandani, mother diary.

Gujarat Co-operative Milk Marketing Federation, which markets products under the Amul brand, is planning to sign an MoU with Tamil Nadu based Aavin to jointly manufacture and sell milk products. The federation's senior executive (sales) V J Martin Paul told presspersons that the company would expand its marketing activities in Tamil Nadu this year in a big way, setting up about 400 retail outlets this fiscal for ice cream products, in addition to the existing 4000.
Last year it saw 19% growth against the all-India growth rate of 21%.tamilnadu government see an average growth of 20%

Headquarters
The Tamil Nadu Cooperative Milk Producers Federation (AAVIN) is located at 13°9′10″N 80°14′40″E AavinIllam, Madhavaram Milk Colony, Chennai.

Aavin on `competition mode' to face pvt sector

AAVIN, the co-operative dairy in Tamil Nadu, is on a `competition mode' to take on the private sector and address changes in the market place. It is banking on quality, customer service and expanding product base to consolidate its position as a market leader while trying to instil in the dairy farmers the need to bow to market-place reality to survive.
According to Mr R. Balakrishnan, Managing Director, Tamil Nadu Co-operative Milk Producers Federation, the co-operative has embarked on a broad-based image building and quality consciousness exercise from the farm level to retail outlets including the chilling and processing centres.
The federation, more popularly known as Aavin, procures around 18 lakh litres milk per day. It could fluctuate by one lakh litre between the lean and flush seasons, he said. However, the supply and demand notwithstanding, procurement prices and sale price are rigid _ factors that have a telling impact on its viability. To address this issue, Aavin had embarked on a programmers to sensitize the farmers to the needs of commercial style of operations, in their long-term interest, he said.
As a part of a clean-milk campaign it has suggested guidelines to farmers to reduce microbial contamination and ensure longer shelf life, MrBalakrishnan said. In addition, use of stainless steel vessels to collect and transport the milk is being encouraged. A programmed is in place to fund purchases of these vessels with farmers' societies and the milk unions bearing a third of the cost each with the balance to be borne by the farmer, he said.
On the marketing side, Aavin sells about 6.8 lakh liter milk per day, and is in the process of regaining the 60,000 to 65,000-litre drop in sales following the hike in milk prices in December 2001. During the first month itself it has gained about 15,000 litres, and Aavin hopes to not only regain the lost ground but also hike up sales to eight lakh litres over the next few months, he said.
MrBalakrishnan said customer service and improved marketing would be the main areas of focus. During February, customer-meets will be organized to obtain suggestions to improve service. Staff meetings have been held at the depot level, and steps have been initiated to improve the condition of booths and vending machines. Aavin is also considering establishment of customer call centres with interactive voice response facility, he said.
In tune with these initiatives, Aavin has adopted the National Dairy Development Board initiative to introduce a mnemonic symbol for cooperative dairies. The logo to enable easy recall of the cooperative brand is also a sign of the cooperatives' commitment to quality and customer satisfaction, he said. To back this up, special steps have been initiated to ensure leak-proof and clean packaging, MrBalakrishnan said.
An expert committee that has looked into the issues related to packaging will soon submit its report. This will suggest measures to improve existing packages and add new ones, he said.
To enhance reach and expand markets, the cooperative dairy has decided to intensify marketing efforts in the secondary cities and rural areas. Direct selling will be stepped up, distributorship network will be strengthened and the efforts are on to help women self-help-groups take up marketing of Aavin products on a commercial basis, he said.
In Chennai, Aavin is planning `up-market' outlets to attract the youth. Apart from take-away, these will be eating out places where along with the regular beverages, cheese-based products like pizzas would be available, he said.
The products dairy now located at Ayanavaram will soon be shifted to a new facility in Ambattur.
More than Rs one crore has been spent on this facility to enable production of larger range of ice creams and increase output of other milk-based sweets, he said.
The Tamil Nadu Co-operative Milk Producers' Federation Limited is an apex body of 17 District Cooperative Milk Producers' Unions.The Federation has four dairy plants at the following locations in Chennai.[1]
1. Ambattur with a capacity of 4.00 lakh litres per day
2. Madhavaram with a capacity of 3.00 lakh litres per day
3. Sholinganallur with a capacity of 4.00 lakh litres per day.
4. Ambattur - Product Diary.
These dairies collect milk from District Unions, process and pack in sachets and send for sale to the consumers in and around Chennai City. The Ambattur product Dairy is also engaged in the manufacture of milk products such as Yogurt, Ice Cream, Khova, Gulabjamoon, Buttermilk, Curd and Mysorepak.

Other information aoutsalemaavin diary
Registration of Salem district cooperative milk 10.07.1978 Produces union ltd
Starting the sale district cooperative milk 07.10.1978
Producers union ltd
Areas of operation Salem and Namakkal dist
No. Of societies affiliated 1101
No of functional societies 1049
Total no of farmer members 326684 No. of rural milk collecting routes 56 Procurement price paid to producers Buffalos milkkg fat Rs. 200-rs 14/lit Cow milk per kg total solid Rs. 92-rs 12.00/lit
Daily average procurement in liters 397727
Maximum milk procurement 447675 Local milk sales 1.38 lacks /lit/day
Processing capacity in 1pd 300000
Chilling centre-attur 102740
Namakkal 49628
P.velur 47978 Product production capasty Butter: 9 mt
Ghee: 6 mt
Smp: 10 mt

Product profile

Pasteurized Toned Milk

Standardized milk

Full cream milk

Double toned Milk

FAT 3.0% SNF 8.5% FAT 4.5% SNF 8.5% FAT 6 % SNF 9.0%

FAT 1.5 % SNF 9.0 %
Ghee varieties GHEE (TIN)
15KG
GHEE (JAR)
5LTR
GHEE (TIN)
1LTR
GHEE (JAR)
1LTR
GHEE (CARTON)
1LTR
GHEE (TIN)
500ML
GHEE (JAR)
500ML
GHEE (CARTON)
500ML
GHEE (JAR)
200ML
GHEE (SACHET)
25ML
GHEE (JAR)
5KG
GHEE (JAR)
1KG
GHEE (JAR)
500GM
GHEE (JAR)
200GM

Skimmed Milk Powder
Carton - 500gms
Poly Bag - 1 kg
Bulk Bag - 25 kg Cheese
200gms/400gms

Flavoured Milk
Tetra Pak & bottles 200ml
-strawberry
-cardamom
-chocolate
-Pineapple
-Pista
UHT Milk
1000 ml (Tetra Brik Aseptic Package)
500 ml (Tetra Fino Aseptic Package)
Ice-creams
Vanilla, Strawberry, Chocolate, Pineapple, Blackcurrant, Pista, Badam, Chaco Risin, Mango, Butter Scotch, TuttiFrutti,

Sugar Free Ice creams
Cups 50gms/100gms/500gms / 1lit / 1 gallon
Sticks
Cones Milk Sweets
GulabJamun, Mysurpa, Dates Khoa
Cartons - 250 gms/ 500gms/1kg Butter

Salted - 200gms / 500gms / 20kg
Plain - 200gms / 500gms / 20kg
Masala Butter Milk &Lussi

Yoghurt Sachet - 200ml

100 ml
Mango Drink –Maavin
200 ml (Tetra Brik Aseptic Package) Milk Khoa

Panneer
Packets - 25 gms/50gms/100gms -
/250gms/500gms
Bulk - Un sugared

200gms
CURD

200 ml sachet & 200 GMS CUP(Probiotic)

There is one thing I simply can't find at the Aavin dairy in Sholinganallur — cows. For a plant that processes close to 3.8 lakh litres of milk a day, all I see is just a lot of gleaming stainless steel, twisted into pipes and shaped into six enormous silos, standing guard at the entrance. I've just driven down the busy OMR, and entered the sprawling dairy. A ‘wash your hands and feet' board welcomes me as I enter the low, one-storied building, and I dip my feet in a trough of water laced with disinfectant. “Where are the cows?” I ask, as soon as I meet two Aavin employees. They smile indulgently; I suppose they get asked this a lot. “All our milk comes from Salem, Coimbatore, Tiruchi and Thanjavur. The Corporation does not allow cows to be reared within city limits,” I'm told. “But I've seen many cows in the city,” I argue. “We don't buy that milk; all our cows are registered, they're under the care of our veterinarians, while the farmers are taught good hygiene practices, “they say.
Cold chain
But wherever they live, they're milked by hand at 4 a.m. and the milk is transferred in an unbroken cold chain, until it reaches the dairy in massive 9000-litre tankers. There's one behemoth standing right outside the building, pumping the milk into the silo. “Touch the tanker; is it cold?” Dr. K. Anabas, the dairy bacteriologist, asks me. “Umm, no,” I reply. “Good, because that means the tanker is well-insulated. Now touch the valve.” It's cold and especially refreshing, in the searing heat of the afternoon. “That's milk at 6 degree C,” he smiles, adding that this is the only point where you can actually see the milk flow. “After this, you only get to see it in the packet.”
I'm happily surprised; this is automation of a very high order, and even though the romantic in me laments the lost drawing-milk-from-the-udder photo opportunities, the inner end-customer is secretly pleased at all the care lavished to keep milk germ-free.
The milk from the tanker — after passing quality control and laboratory tests — is pumped into the storage tank. But this milk, in its raw state, is rich in nasty micro-organisms, and since we don't care for that in our coffee, it undergoes many levels of purification, the best-known of which is pasteurisation. Dr. Anbarasu talks me through the HTST (high-temperature, short-time) process, where the milk is heated up to 74 degree C to 76 degree C, held at that temperature for 15 seconds and chilled rapidly to below 5 degree C. “This kills all the pathogens and it is this process, besides clarification (to remove dirt and dead organisms) and homogenisation (where big fat globules are broken down into little ones, to facilitate easy digestion), that makes it safe for the young and the elderly to drink the milk straight from the packet.”
Next, the milk is ‘standardised'. In lay terms, it's getting the fat and solid non-fat content right for the different coloured sachets of Aavin milk (for e.g., the blue toned milk sachets have 3 per cent fat and 8 per cent solid non-fat content, while the orange has 6 per cent and 9 per cent respectively). Until I get to this point, I have seen no sign of the milk that went into the silos. But now, with a reassuring hum, a big, complicated machine fills milk into previously sterilised sachets. But it's not just milk that puts in a late appearance; it's also people, who take over from the computers and machinery that have, at the flick of a button, been taking care of the various processes, including cleaning the gigantic silos. Here, the staff check the sachets, as they drop from the machine onto the conveyor belt. The sachets are then swiftly packed into trays and wheeled into the cold-storage room. This whole operation reminds me of a well-orchestrated ballet. Young lads whiz past me, pushing stand-up trolleys with a towering row of milk trays. In the bitingly chill, continuously cleaned cold-storage room, they quickly deposit the trays and whisk the trolleys away to fetch the next batch. The entire cycle takes less than a minute.
In a few hours time, I'm told, the milk will be dispatched (the vehicles leave the gate around 1.30 a.m.- 2 a.m.), and reach the consumers by 4.30 a.m. And this round-the-clock operation goes on without a break 365 days a year, as it has, for the last 48 years. Clearly, even while the cows might take a break, and go on maternity leave, Aavin keeps going. On and on. the company also has a registered trade mark as shown at the beginning of chaper
The private dairy industry in the State is sulking with the cooperative dairy, Aavin's move to procure milk from the private sector to meet its demand. According to private dairy industry representatives who do not want to be named, the authorities are asking the private dairy companies to part with about 20 per cent of the milk they procure from farmers to the Tamil Nadu Cooperative Milk Producers Federation. The move is to augment supply to Aavin, the cooperative milk brand, in line with plans to grow the business.
When contacted by Business Line, the concerned authorities declined to comment. Private dairies lose money on the deal as they procure milk from farmers, transport it to the chilling centre before supplying to the cooperative.
The payment to farmers is based on the milk fat content, which works out to Rs 18-18.20 a litre. But when they supply to the cooperative they lose over Rs 2 a litre including the transport and chilling costs, they say. The dairies plan to take up the issue with the State Government and seek relief. Dairy companies point out that the industry's regulator is also its competitor. Traditionally, the role of dairy regulator that is the Commissioner of the Milk Production and Dairy Development Department is also played by the Head of Aavin, so it is up to the Government to help them out. The move by the cooperative could prove detrimental in the long run as the private sector has contributed significantly to the growth of dairy in the State.
Of the 110 lakh litres a day (llpd) of milk produced daily in the State, Aavin accounts for about 20 llpd and the private sector account for 40-45 llpd. The balance is directly consumed.

SPECIAL ACHIEVEMENTS
1. The Nucleus Jersey and Stud Farm has been granted the ISO 9002:1994 Quality System Certification by the Bureau of Indian Standards vide License No. QSC/L-008958 with effect from 25-02-2002 . Now, the Quality System Certification of ISO 9002:1994 has been upgraded to ISO: 9001:2000.
2. This is the second Farm in India to obtain ISO Certification.
3. Among the 13 Farms maintained by the Co-operatives in India , this Farm is the first one to get ISO 9002:1994 Certification.
4. Even in Tamil Nadu this is the only Farm with ISO 9002:1994 Certification.
5. Out of about 65 semen stations evaluated all over India , The Nucleus Jersey Farm was awarded “A” GRADE by the Government of India based on the evaluation carried out by the Central Monitoring Unit constituted by the Department of Animal Husbandry and Dairying, Government of India. Only 7 Semen Stations have obtained “A” Grade in the country.
6. The data available in this Farm on semen production, Animal maintenance, Fodder production, trials on new fodder varieties etc are utilized by Research Scholars and Post-graduate students of Tamilnadu Veterinary and Animal Sciences University and Tamilnadu Agricultural University .
7. For the Milk Pr+oducers of Dairy Co-operative Societies of various Districts and for the under graduate students of Veterinary Colleges this Farm is highly educative.
8. Many Farmer/Producers visit this farm and seek guidance to start small dairy farms of their own at their places AWARDS
It has won the ‘best food processing industry in dairy activities’ award given by National Productivity Council, according to the unit’s General Manager (in-charge), K. Thangarajan.
An autonomous national organisation, the council was established in 1958 by the Centre for providing training, consultancy and undertaking research in the area of productivity.
The 41-year-old unit, known as Madurai District Cooperative Milk Producers’ Union, is one among 17 in the State, and comes under Tamil Nadu Cooperative Milk Producers’ Federation. The union covers Madurai and Theni districts.
Union Minister of State for Food Processing, Subodh Kant Sahai, would present the award to Mr. Thangarajan in New Delhi on March 19. The General Manager (in-charge) would be accompanied by the unit’s senior officials.
The Marketing Manager, S. Karthikeyan, said, “The criteria for the award include the recipient’s contribution to nation’s economy and its growth.”
In attempt to boost sales of its milk products, Aavin on Tuesday launched a mobile sales outlet that would criss-cross the city marketing its products.
Apart from guava and ghee, two other Aavin products of Mysorepa and badam powder have also been introduced to the city market.
The mobile unit would mostly travel around places of public congregations such as the bus stands, railway station, markets and places of worship. The mobile unit was flagged off by Collector Jayashree Muralidharan in the presence of T.Thiyagarajan, District Revenue Officer, and R.Natarajan, General Manager, Aavin, Tiruchi.
The Tiruchi Aavin (District Cooperative Milk Producers Union) currently procures about 3.50 lakh litres of milk from member societies every day.
Of this, 1.20 lakh litres are used for local consumption and about 1.70 lakh litres are sent every day to Chennai. Around 60,000 litres are sent to Erode to be made into milk products such as guava, ghee and milk powder.

Amul Brief History of Amul:
Anand milk union ltd. had been established in the year 1938. Mr. VallabhbhaiPatel was the president of this organization. Previously this unit was startedunder the name of KDCMPUL(Kaira District Co-Operative Milk Producers union Limited)In February1955, new dairy was established and than Mr.Kurian&Mr.Philiphave thought to name this unit as Amul was registered in 1957.For the establishment and development of AmulMr.vallabhbhaiPatelTribhovandas Patel, Bhailalbhai (Bhaikaka) and Mr.Kurian have played animportantRole.With the time Amul is developed in 1966-67 Amul have started to produce babyfood. In 1970-71 new factory was established in Mogar in 1974. In Amulchocolates has been introduced in 1976. Nutramul was introduced.In Nov, 1973 GCMMF (Gujarat Co-Operative Milk Marketing Federation) waselected and Kurian was elected as president. This federation has startedmarketing of dairy production from 1st
April 1974.The production capacity is increasing day to day. And right now the collection of milk is 7.73 crorekgs. They are having Production unit at Mogar, KhatrajandAnand.They are producing milk powder, butter, Ghee, Chocolate, Milk food, Cheese,shreekhand etc. which are being marketed by GCMMF.

No. of. Employees and brief profile of employees
Employees
735 employees of Marketing Arm. However, real pool consist of 3.03 million milk producer members
Members:
13 District Cooperative Milk Producers' Unions
No. of Producer Members:
3.03 million
No. of Village Societies:
15,712

Profile of CEO/CMD:
R S Sodhi's
MANAGING DIRECTOR at GCMMF (AMUL)
CGM at GCMMF LTD
GOVT. SCHOOL, Sector 1 and 3,R K PURAM, NEW DELHI, CTAE,UDAIPUR, IRMA, ANAND
MANAGING DIRECTOR
GCMMF (AMUL)
Government Agency; 501-1000 employees; Dairy industry
June 2010 – Present (2 years 4 months)
CGM
GCMMF LTD
Government Agency; 501-1000 employees; Dairy industry
June 2004 – June 2010 (6 years 1 month) working with GCMMF for the last 29 years. joined as Sr Executive(sales)
Board of Directors/Management Profile:
Mr. Ramsinh.P.Parmar (Chairman) Mr.Rajendrasinh.D.Parmar (Vice Chairman) Mr.Mansinh.K.Chauhan. Mr.Dhirenbhai.A.Chavada. Mr. Pravinsinh.F.Solanki Mr.Bipinbhai.M.Joshi Smt.Madhuben.D.Parmar Mr.Bhaijibhai.A.Zala Mr.Shivabhai.M.Parmar Mr.Chandubhai.M.Parmar Mrs.Sarajuben.B.Patel Mr.Maganbhai.G.Zala Mr.Ranjeetbhai.K.Patel (Additional Director) Mr.B.M.Vyas (GCMMF) Mr.Deepak Dalal (Co.operative department Gujarat) Mr.Rahul Kumar (Incharge M.D)

Total Sales Turn Over including foreign sales
Sales Turnover
Rs (million)
US $ (in million)
1994-95
11140
355
1995-96
13790
400
1996-97
15540
450
1997-98
18840
455
1998-99
22192
493
1999-00
22185
493
2000-01
22588
500
2001-02
23365
500
2002-03
27457
575
2003-04
28941
616
2004-05
29225
672
2005-06
37736
850
2006-07
42778
1050
2007-08
52554
1325
2008-09
67113
1504
2009-10
80053
1700
2010-11
97742
2172

Major Competitors
Competitors’ Information
There are various competitors to AMUL in various product lines; the
Mostfiercely competed being the butter and milk segment. Some of the most bullishcompetitors are listed below.

Britannia:
With the motto, “Eat Healthy, Think Better”, the biscuit major is a bigstumbling block for AMUL in the butter and cheese segment, with its cheese products competing on the same level of AMUL. Though AMUL does not haveany biscuit product lines, the quality of Britannia butter can be compared withAMUL with some critics placing the butter and cheese products high aboveAMUL’s.

Cadbury:
With the vision, “Life full of Cadbury and Cadbury full of life”, thischocolate major is a major competitor in the national and international markets for chocolates of AMUL. Also, it has recently locked horns with Cadbury, for themalt based drink Bournvita, though it is a long way for AMUL to gain ground tocome on par with Cadbury.

Nestle:
With the motto, “Good food, good life”, it has competed with AMUL onthe product lines of chocolates and beverages. Milo is a huge competitor alongwithBournvita, to Nutramul. Essentially all Nestle chocolates are liked alongwith Cadbury to push AMUL out of the segment.

Dabur
With the mo:tto, “Celebrate Life”, dedicated to the health and well-beingof every household, this is a major competitor in the baby care and beveragessegment with its baby care milk powder and its Real and Active juice products. Itis a known product all over the country and provides stiff competition in spite of his questioned quality
Based at Andan district of Gujrat, Amul is wide spread and is a major player in dairy products. However in gujarat there are various other dairy companies who are leading in their respective disctricts of gujarat. for example SUMUL (in surat), Baroda Dairy (in Baroda) than mehsana dairy etc. these are in tough competition in the respective disctricts.
Annual Growth rate last 5 years
Anand, Gujarat, India, Thursday, May 31, 2012 -- (Business Wire India)
GCMMF which markets the popular Amul brand of milk and dairy products has crossed yet another landmark in its long and illustrious history. The results of the apex body of dairy cooperatives in Gujarat, were declared on 31st May 2012, in the 38th Annual General Meeting of GCMMF. The organization symbolizing ‘taste of India’ achieved another milestone by crossing the US $ 2.5 billion mark. However, this is not the only feat Amul is celebrating. GCMMF paid Rs. 9901 crore to its Member Unions, represented by 32 Lakh farmers. This way maximum share of consumers’ money earned by GCMMF is being returned to its member farmers. GCMMF has closed the year 2011-12 with a turnover of Rs. 11668 crores, which is approximately 20% higher than Rs. 9775 crore, the turnover in 2010-11. All over the country and world, where farmers are struggling to make their milk business viable in absence of good returns, the farmers of Gujarat are rejoicing over a 58% increase in their milk prices, over the last three years. Member farmers of GCMMF Ltd received a price of Rs. 468 per Kg Fat for their milk production this year, the highest price being paid to farmers in the country.

The high growth in turn-over is also reflected in the performance of its various mega-brands as the organization has further enhanced its market-share in different product categories in spite of tough competition from local as well as multinational players. GCMMF has done remarkably well in most of the value-added consumer packs. Amul Milk in pouches has shown an impressive value growth of 29%. Sales of AmulDahi and Amul Buttermilk have grown by a remarkable 41% and 27% in value respectively. Sales in Amul Cheese have shown a consistent and impressive growth of 23%. Dairy whitener, Amulya too has shown a growth of 26% over previous year sales. Amul Ice cream has maintained the position of No. 1 Ice cream brand in India, leaving a wide gap with the nearest competitor.

GCMMF, last year, initiated its largest distribution expansion exercise to extend its reach to smaller towns and semi-urban areas. Apart from the 750 distributors added in dairy and fresh products segment, GCMMF also added 150 super distributors through the implementation of its new ‘hub & spoke’ model, to reach the smaller markets. Retailing continues to be an important strategic initiative for GCMMF. During the year 2011-12, 965 new AmulParlours have been added, taking the total strength to 6315, thus reinforcing the wide popularity of this concept. Apart from the 170 parlours at railway stations and 303 parlours operating at various centers of excellence; Amul also has 600 air-conditioned Ice-cream scooping parlours. With this Amul has emerged as the largest single brand retail in the country.

While commenting on the results, ShriParthibhai G. Bhatol, Chairman, GCMMF informed that this year’s performance is even more remarkable, considering the shortage of milk we faced in the beginning two quarters of the year and with this GCMMF has recorded a consistent growth rate of 20% over the last five years. Increased turnover of GCMMF means better returns for its farmer members, for whom this state apex body has been working relentlessly since last 38 years. He also mentioned about the growth plans, as part of which GCMMF will be investing Rs. 3000 crores to set up nine processing units in next four years. “This would enhance our milk handling capacity to 180 lakh litres per day against current capacity of 145 lakh litres per day”, said the Chairman. He emphasized that in order to make India a milk surplus country and to pay reasonable returns to the milk producers, Government would need to give policy focus to dairy. Dairy today contributes 26% in agricultural output but still receives only 12% of the public expenditure on agriculture. Further, exempting income tax on dairying, like it is in agriculture, and reduced VAT rates on consumer products which are currently as high as 12.5% would help boost dairy sector and ensure better returns to milk producers and consumers.

ShriBhatol further informed that GCMMF plans to achieve a turnover of Rs. 14400 crore in the year 2012-13. As the undisputed leader of organized Indian dairy sector, GCMMF will continue to focus on expanding category penetration and enlarging consumer base of the product categories that it operates in.

Market Share [during last three years]
Allover the country and world, where farmers are struggling to make their milk business viable in absence of good returns, the farmers of Gujarat are rejoicing over a 58% increase in their milk prices, over the last three years.
GCMMF which markets the popular Amul brand of milk and dairy products has crossed yet another landmark in its long and illustrious history. The results of the apex body of dairy cooperatives in Gujarat, were declared on 31st May 2012, in the 38th Annual General Meeting of GCMMF. The organization symbolizing 'taste of India' achieved another milestone by crossing the US $ 2.5 billion mark. However, this is not the only feat Amul is celebrating. GCMMF paid Rs. 9901 crore to its Member Unions, represented by 32 Lakh farmers.

This way maximum share of consumers' money earned by GCMMF is being returned to its member farmers. GCMMF has closed the year 2011-12 with a turnover of Rs. 11668 crores, which is approximately 20% higher than Rs. 9775 crore, the turnover in 2010-11. All over the country and world, where farmers are struggling to make their milk business viable in absence of good returns, the farmers of Gujarat are rejoicing over a 58% increase in their milk prices, over the last three years. Member farmers of GCMMF Ltd received a price of Rs. 468 per Kg Fat for their milk production this year, the highest price being paid to farmers in the country.

The high growth in turn-over is also reflected in the performance of its various mega-brands as the organization has further enhanced its market-share in different product categories in spite of tough competition from local as well as multinational players. GCMMF has done remarkably well in most of the value-added consumer packs. Amul Milk in pouches has shown an impressive value growth of 29%.

Sales of AmulDahi and Amul Buttermilk have grown by a remarkable 41% and 27% in value respectively. Sales in Amul Cheese have shown a consistent and impressive growth of 23%. Dairy whitener, Amulya too has shown a growth of 26% over previous year sales. Amul Ice cream has maintained the position of No. 1 Ice cream brand in India, leaving a wide gap with the nearest competitor.

GCMMF, last year, initiated its largest distribution expansion exercise to extend its reach to smaller towns and semi-urban areas. Apart from the 750 distributors added in dairy and fresh products segment, GCMMF also added 150 super distributors through the implementation of its new 'hub & spoke' model, to reach the smaller markets. Retailing continues to be an important strategic initiative for GCMMF.

During the year 2011-12, 965 new AmulParlours have been added, taking the total strength to 6315, thus reinforcing the wide popularity of this concept. Apart from the 170 parlours at railway stations and 303 parlours operating at various centers of excellence; Amul also has 600 air-conditioned Ice-cream scooping parlours. With this Amul has emerged as the largest single brand retail in the country.

While commenting on the results, ShriParthibhai G. Bhatol, Chairman, GCMMF informed that this year's performance is even more remarkable, considering the shortage of milk we faced in the beginning two quarters of the year and with this GCMMF has recorded a consistent growth rate of 20% over the last five years. Increased turnover of GCMMF means better returns for its farmer members, for whom this state apex body has been working relentlessly since last 38 years.

He also mentioned about the growth plans, as part of which GCMMF will be investing Rs. 3000 crores to set up nine processing units in next four years. "This would enhance our milk handling capacity to 180 lakh litres per day against current capacity of 145 lakh litres per day", said the Chairman. He emphasized that in order to make India a milk surplus country and to pay reasonable returns to the milk producers, Government would need to give policy focus to dairy.

Dairy today contributes 26% in agricultural output but still receives only 12% of the public expenditure on agriculture. Further, exempting income tax on dairying, like it is in agriculture, and reduced VAT rates on consumer products which are currently as high as 12.5% would help boost dairy sector and ensure better returns to milk producers and consumers.

Bhatol further informed that GCMMF plans to achieve a turnover of Rs. 14400 crore in the year 2012-13. As the undisputed leader of organized Indian dairy sector, GCMMF will continue to focus on expanding category penetration and enlarging consumer base of the product categories that it operates in.

SWOT analysis:
Strength:
•Largest food brand in India
•High Quality, LowPrice
•World'sLargest Pouched Milk Brand
Annual turnover of US$1504 million
•Highly Diverse Product Mix
•Robust Distribution Network
Weaknesses
Risks of highly complex supplychain system
•Strong dependency on weak infrastructure
•Alliance with third parties who do not belong to the organized sector

Opportunities
•Penetrate international markets
•Diversify product portfolio to enter new product categories and expand existing categories like processed foods,chocolates etc

Threats
•Competitors-HindustanLever
Nestle
Britannia
•Stillcompetition from MNCs in butter •Growing price of milk and milk products •Ban on export of milkpowder

Nature of business & main business& other businesses.
Nature of the business carried

The Kaira District Co-operative Milk Producers’ Union Ltd. was started in1946 with an aim of bringing together all the farmers of Gujarat to produce the bestquality milk and milk products with the right value for money. The basic nature, hence, of AMUL as a whole is to produce milk products and procure milk from the farmers and market it through Gujarat Co-operative Milk Marketing Federation. GCMMF Ltd. manages the brand name AMUL and it is an apex co-operative organization. AMUL is jointly owned by 2.41 million milk producers of Gujarat. Hence it solely depends on the farmers of Gujarat for procurement of milk to produce milk products. Other than the above, it provides value added services like

•Cattle Feed

•Artificial Insemination

•Mobile Veterinarians

•Fertility Improvement Programme

•Productivity Enhancement Programme

Product profile(Range of Products):
Breadspreads:
Amul Butter
Amul Lite Low Fat Breadspread
Amul Cooking Butter
Cheese Range:
Amul Pasteurized Processed Cheddar Cheese
Amul Processed Cheese Spread
Amul Pizza (Mozarella) Cheese
Amul Shredded Pizza Cheese
AmulEmmental Cheese
Amul Gouda Cheese
AmulMalaiPaneer (cottage cheese)
Utterly Delicious Pizza
Mithaee Range (Ethnic sweets):
AmulShrikhand (Mango, Saffron, Almond Pistachio, Cardamom)
AmulAmrakhand
AmulMithaeeGulabjamuns
AmulMithaeeGulabjamun Mix
AmulMithaeeKulfi Mix
AvsarLadoos
UHT Milk Range:
Amul Shakti 3% fat Milk
AmulTaaza 1.5% fat Milk
Amul Gold 4.5% fat Milk
Amul Lite Slim-n-Trim Milk 0% fat milk
Amul Shakti Toned Milk
Amul Fresh Cream
Amul Snowcap Softy Mix
Pure Ghee:
Amul Pure Ghee
Sagar Pure Ghee
Amul Cow Ghee
Infant Milk Range:
Amul Infant Milk Formula 1 (0-6 months)
Amul Infant Milk Formula 2 ( 6 months above)
Amulspray Infant Milk Food
Milk Powders:
Amul Full Cream Milk Powder
Amulya Dairy Whitener
Sagar Skimmed Milk Powder
Sagar Tea and Coffee Whitener
Sweetened Condensed Milk:
AmulMithaimate Sweetened Condensed Milk
Fresh Milk:
AmulTaaza Toned Milk 3% fat
Amul Gold Full Cream Milk 6% fat
Amul Shakti Standardised Milk 4.5% fat
Amul Slim & Trim Double Toned Milk 1.5% fat
AmulSaathi Skimmed Milk 0% fat
Amul Cow Milk
Curd Products:
AmulFlaavyo Yoghurt
AmulMastiDahi (fresh curd)
AmulMasti Spiced Butter Milk
AmulLassee
AmulIcecreams:
Royal Treat Range (Butterscotch, Rajbhog, MalaiKulfi)
Nut-o-Mania Range (KajuDraksh, KesarPista Royale, Fruit Bonanza, Roasted Almond)
Nature's Treat (Alphanso Mango, Fresh Litchi, ShahiAnjir, Fresh Strawberry, Black Currant, Santra Mantra, Fresh Pineapple)
Sundae Range (Mango, Black Currant, Sundae Magic, Double Sundae)
Assorted Treat (Chocobar, Dollies, Frostik, Ice Candies, Tricone, Chococrunch, Megabite, Cassatta)
Utterly Delicious (Vanila, Strawberry, Chocolate, Chocochips, Cake Magic)
Chocolate & Confectionery:
Amul Milk Chocolate
Amul Fruit & Nut Chocolate
Brown Beverage:
Nutramul Malted Milk Food
Milk Drink:
AmulKoolFlavoured Milk (Mango, Strawberry, Saffron, Cardamom, Rose, Chocolate)
AmulKool Cafe
AmulKool Koko
AmulKoolMillkShaake (Mango, Strawberry, Badam, Banana)
Number of awards &Recognitions (if any)
GCMMF bags APEDA AWARD for 11th year in a row
Amul Pro-Biotic Ice-cream Gets No. 1 Award At World Dairy Summit
Ramkrishna Bajaj National Quality Award-2003
Amul - The Taste Of India (Gcmmf)Receives International Cio 100 Award For Resourcefulness
Rajiv Gandhi National Quality Award - 1999

NANDINI ABOUT THE COMPANY- Karnataka Co-Operative Milk Federation:
Karnataka Milk Federation (KCMF) is the largest cooperative dairy Federation in South India, owned and managed by milk producers of Karnataka State. KCMF has over 2.13 million milk producers in over 11443 Dairy Cooperative Societies at village level, functioning under 13 District Cooperative Milk Unions in Karnataka State. The mission of the Federation is to usher rural prosperity through dairy development. During the last four decades of cooperative dairy development by KCMF, the dairy industry in Karnataka has progressed from a situation of milk-scarcity to that of milk-surplus. KMF Milk Products:
“Quality Excellence from Cow to Consumer” – is the motto of the Federation to obtain better-quality Milk and milk products from our value chain (Procurement to Processing to Marketing). Thus milk and milk products, under Nandini brand name, are unmatched in quality made available to consumers at most competitive prices. In a way Nandini Milk and Milk Products are “Spreading wealth of health”.
Nandini Packaging Film Plant:During the year 1995-96, due to inconsistency in terms of supplies and qualities of Milk Packing Film by suppliers, KMF decided to establish a Pouch Film Plant as backward integration.
The Project Report was prepared by Institute of Rural Management, Anand. The project was established during 1997 with the help of National Co-operative Dairy Federation of India and Central Institute of Plastics Engineering & Technology (CIPET), Mysore, as technical consultant.The Project investment made was Rs.393.36 lakhs.Pouch Film Plant is situated in Marathally, HAL Road which is about 15 kms from Bangalore Bus Station.

HISTORY OF THE COMPANY-
Karnataka Milk Federation which is most popular as KMF, evolved itself as a premier and most profitable dairy farmers' organization in the State of Karnataka.
As an agency in 1975 to implement the World Bank Aided Dairy Development Projects,Karnataka Dairy Development Corporation (KDDC) was formed, the company grew itself fast and as it spreads the wings of new found rural economic activity - Dairying all over the State, the genesis of apex cooperative body took the shape of KMF in 1983 encompassing entire State with 13 District Co-operative Milk Unions executing the various parameters of Dairy activity - organization of Dairy Co-operatives, Milk Routes, Veterinary Services, Procurement of milk in two shifts of the day, Chilling, Processing of milk, distribution of milk and also establishment of Cattle Feed Plants, Nandini Sperm Station, Liquid Nitrogen Supply, Training Centres - as its main stay.
The entire system was reconstructed on the model of now well known `ANAND' pattern dairy cooperative societies. Eight southern districts of Karnataka was considered initially with a target of organizing 1800 Dairy Co-operative Societies, four Milk Unions and processing facilities were set up to the tune of 6.5 lakhs per day by 1984.
Under Operation Flood - II &III, project which started in 1984 & 1987 covered the remaining parts of Karnataka. Thirteen milk unions are organized in 175 talukas of all 20 districts then and the field work was extended by organizing more dairy cooperative societies. The processing facilities i.e. chilling centers, milk dairies and powder plants were transferred in phases to the administrative control of respective cooperative milk unions and the activities continued to be implemented by these District Organisations. Additional processing facilities were created & existing facilities augmented every decade with the help of Govt. / ZillaPanchayat and NDDB to handle ever increasing milk procurement without declaring milk holidays. The processing facility as exists at 32.25 lakh liters/day is further strengthened.

Chairman &Employees profile :

SRI G.SOMASEKHARA REDDY - CHAIRMAN , KMF
G. Somashekara Reddy is a member (MLA) of the VidhanSabha of Karnataka representing the Bellary assembly constituency of Karnataka and is a member of the BharatiyaJanata Party(BJP) political party. He is also the chairman of Karnataka Milk Federation. He is a member of a family which owns the Obulapuram Mining Company with iron ore mining interests in Karnataka and Andhra Pradesh and has been facing allegations of illegal mining in forest lands.
He was unanimously elected as Chairman, KMF for the second consecutive term for a period of two and half years from 1.10.2011 to 31.3.2014.

Name
Designation
Place of working

SRI G.SOMASEKHARA REDDY
CHAIRMAN

KMF CO

DR.M.N.VENKATARAMU
MANAGING DIRECTOR

KMF CO

C.NARASIMHA REDDY
DIRECTOR (FIN)
KMF CO
D.SRINATH
DIRECTOR (MARKETING)
KMF CO
VAKHEEL-UR-RAHMAN
ADNL DIR (STEP)
KMF CO
DR.H.N.SUDHAKAR
ADNL DIR (ADMIN)
KMF CO

K.S.BHISE
ADNL DIR (MKTG)
KMF CO
DR.BERNARD EARNEST
ADNL DIR (CFP)
KMF CO
DR.D.N.HEGDE
ADNL DIR (AH)
KMF CO
B.NATRAJ
ADNL DIR (R&D/Q.C)
KMF CO

UNION CHIEFS

Name
Designation
Place of working
DR.V. LAKSHMAN REDDY
M.D
BANGALORE MILK UNION
SURESH KULKARNI
M.D
TUMKUR MILK UNION
G.T.GOPAL
M.D
KOLAR-CHIKKABALLAPURA MILK UNION
CHENNAKRISHNAIAH
M.D
BELGAUM MILK UNION
RANGANATH. B.P
M.D
HASSAN MILK UNION
DR.K SWAMY
M.D
MANDYA MILK UNION
DR. SURESH BABU
M.D
MYSORE-CHAMARAJNAGAR
RAVIKUMAR KAKADE
M.D
DAKSHINA KANNADA
DR M JANARDAN REDDY
M.D
RAICHUR-BELLARY-KOPPAL
DR.K.RAMACHANDRA BHAT
M.D
DHARWAD MILK UNION
V G KASHIMATH
M.D
BIJAPUR-BHAGALKOT
P.D.HAMPALI
M.D
SHIMOGA MILK UNION
BUKKA MALLIKARJUNA
M.D
GULBARGA MILK UNION

UNIT CHIEFS:
Name
Designation
Place of working
A.S.PREMANATH
DIR
MOTHER DAIRY
T S SHASHIDHAR
DIR
MILK PRODUCT PLANT,CHANNARAYAPATNA
DR. R.MAHESH
A.D
NANDINI SPERM STATION
DR.C.N.RAMESH
G.M
CATTLE FEED PLANT, GUBBI
T M LINGAPPA
G.M
CATTLE FEED PLANT, RAJANUKUNTE
C.B.NESVI
G.M
CATTLE FEED PLANT, DHARWAD
D.VIVEK
G.M
CATTLE FEED PLANT, HASSAN
M T KULKARNI
G.M
NANDINI MILK PRODUCTS
H A SRINIVASAN
I/C GM
NANDINI PACKAGING FILM PLANT
DR PATIL VEERENDRA
I/C J.D
TRAINING CENTRE, MYSORE
P.S.BELLUNKI
I/C J.D
TRAINING CENTRE, DHARWAD
B.N.VIJAYKUMAR
G.M
GULBARGA DAIRY

Union Heads of KMF Nandini:

H.D.REVANNA
HASSAN
REVANASIDDAPPA
SHIMOGA
K.V.NAGARAJU KOLAR (CBP)
H.J.CHANDRU
MANDYA
MARUTHI .K
GULBARGA-BIDAR

P.NAGARAJU
BANGALORE

H.K.RENUKA PRASAD
TUMKUR

ESHAV BHAT
DHARWAD

SANJAYGOWDA R
BELGAUM

MALLIKARJUNA
BIJAPUR-BAGALKOTE
RAVIRAJ HEGDE
DK-MANGALORE
S.C.ASHOK
MYSORE(CHMR)

Nominated Directors:

SADANANDA GOWDA
ASWATHNARAYANA
MANGALADEVI

DR.M.N.VENKATARAMU (MANAGING DIRECTOR, KMF)
SMT.MANJULA,IAS PRINCIPAL SECRETARY TO GOK AH&F
DR.D.M.DAS, DIRECTOR AH&VS DEP, GOK
S.G.HEGDE, IAS RCS
B S KHANNA, GM, NDDB
No. of . Employees:
There are at present 20.35 Lakh dairy farmers as primary members including 3.5 Lakhs of SC/ST and 6.6 Lakh woman members.
Dairy Co-operatives employ more than 32000 people and 5200 are permanent
KMF Units and Unions employees.
Indirect employment thro' veterinary services, milk transportation, milk sales etc. activities is to the tune of 52000 people.
This sector has also created demand and employment in manufacturers of equipments required by DCS, Dairies, printing and etc.

Headquarters:
KMF CORPORATE OFFICE
The Corporate Office of the Karnataka Milk Federation is located on Dr.M.H.Marigowda Road in Bangalore. The Federation has a Board consisting representatives of Milk Producers and the Government nominees. The day to day functions of the Federation is managed by a group of professional managers headed by the Managing Director.
Contact information-
Karnataka Co-operative Milk Producers' Federation Ltd.,
KMF Complex, PB No.2915, D.R.College Post,
Dr.M.H.Marigowda Road, BANGALORE - 560 029. Karnataka.
Phone [phone] Fax [phone]
E-mail: [e-mail] , [e-mail] , [e-mail]

Tenders for KMF Nandini:
As Karnataka Co-Operative Milk Federation runs under government it don’t have shares so it issues tenders.
Tender for Transportation of Nandini Milk Products
Tender for whole sale dealership/Super stockiest for Nandini Milk Products
Tender for Civil works
Tender for sale of Nandini Milk Products
Tender for supply of Consumables & Packing Materials
Tender for supply of Cattle feed raw materials
Tender for supply of Mineral Salts & DI-Calcium Phosphate
Tender for Mechanical Works at KMF Units& Etc.,

MajorCompetitors:The success of each and every business unit is mainly depending onhow brilliantly it faces the competitions Mother dairy is not out of completion ithas 80% market share in Bangalore & Presently it is the brand leader for milk products. The main competitors to Mother Dairy are:Heritage,Arogya, Nandi and some private companies.
Heritage-Heritage is recognized as one of India's largest and most successful Dairy for the last 18 years. Based in Hyderabad with an existing brand presence in Andhra Pradesh, Tamilnadu, Karnataka, Kerala and Maharastra. Heritage is known for its high quality standards and premium range of milk and milk products and following high quality manufacturing, packing and distribution practices. Heritage brand is seen in 8.0 lakh households today.
Arogya-In just over four decades has become India's largest private sector company in the Dairy Industry. Their Dairy Products- Dairy Whitener, Skimmed Milk Powder, Agmark Certified Ghee, Butter, Cooking Butter, Milk, Varieties of Curd, Paneer and Buttermilk through the Brand Hatsun Milk & Milk Products.

Sales Contact
Nandi- Nandi Milk Products Pvt. Ltd. was incorporated in the year 1997, under the aegis of Sri.
S.P.Y Reddy, Founder Chairman, Nandi Group of Companies.The company initially started procurement of milk from nearby district and marketed it under the brand of Nandi. Over the decades the company has grown and has presence in Tamil Nadu, Karnataka. The company is known for providing high quality milk and milk products

Total Sales Turn Over :
The growth over the years and activities undertaken by KMF is summarised briefly hereunder: KEY ITEMS

1976-77
2011-2012(Up to Mar'12)
Dairy Co-operatives
Nos
416
13006 REGED / 11568 Funct
Membership
Nos
37000
21.51 Lacs
Avg. Milk Procurement
Kgs/day
50000
Avg.42.85
Peak Proc.46.49(Nov'11) LKPD
Milk Sales
Lts/day
95050
28.90 LLPD / Curd:2.74 LKPD / Good life 2.19 LLPD
Cattle Feed Consumed
Kgs/DCS
220
2958
Daily Payment to Farmers
Rs.Lakhs
0.90
785
Turnover
Rs.Crores

5823.69

Annual Growth rate last 3 year:

Strategic Alliances:
The first step in an organization is the assessment of its objectives and strategies i.e., what business are we in? And at what level of quality do with wishto provide or service? Where do we want to be in the future? It is only answeringthere and other related questions that the organizational must assess the strengthsand weakness of its human resources.

Needs Assessment:
Needs assessments diagnosis present problem and future challenges to be meet through training and development organizations spend vast sums of money (Usually as a percentage of turnover) on training and development. Before committing such huge resource organization would do well to assess the training needs of their employees organizational that implement training programmers without conducting needs assessment may be malignerrors.

Training and developmentobjectives:
Once training needs are assessed, training and development goalsmust be established. Without clearly set goal, it is not possible to design atraining and development program and after it has been implemented,
There will be no way of measuring its effectiveness. Goals must be tangibleverifiable, and measurable. This is easy where skills training are involved

Nature of business & main business :
MOTHER DAIRY, A UNIT OF KMF
Mother Dairy, Bangalore, a flagship dairy of KMF having ISO22000:2005 Certification, was set up during the year 1984, primarily for dispensing liquid milk to customers through Bulk Vending system. Today, the Dairy stands expanded from 2 Lakh Litres to 7 Lakh Litres milk processing per day. Also, it has facilitates to pack and distribute milk & curd in different packs formats in the most hygienic way. Besides, it has a state of the art facility to manufacture Skim Milk Powder, Dairy Whitener, as well as Whole Milk Powder to the tune of 30 MTs per day. It has established a facility to manufacture more than 30 varieties of Ice cream including pro-biotic,sugar free in the various pack formats to the tune of 15000 Litres per day. Presently, it is undertaking manufacturing and co-packing of 'Amul' brand of ice cream for GCMMF.
Mother Dairy, has a network of 647 retailers through whom milk is sold to the consumers.
Further, it has satellite modern format joints to sell various varities of milk and 'Nandini' brand of long shelf life and short shelf life milk products numbering around 50. The sale joints are branded as "Nandini Milk Shoppee". Also, cold chain network which is a prerequisite for sale of milk and milk products has been established in 4 strategic locations of Bangalore city as "Walk in cold store" to ensure un-interrupted and constant milk supply to our retailers/consumers.
The Dairy has undertaken manufacturing of very improvised quality of Paneer, Yogurt as well as flavoured milk in bottles. Plans are also under way for automated production of above milk products in the immediate future. There is a plan drawn up for putting in the market ready-to-eat foods "Retorted" and having appreciable content of milk and milk products.
The exclusiveness of Mother Dairy is because of :
• Mother Dairy cares for quality, hygiene and food safety and hence the dairy was certified for certified for ISO 9001-2000 during the year 2000 and has been certified for ISO 22000-2005 during 2008.
• The Dairy has Export Licence for Skimmed Milk Powder, Whole Milk Powder, Dairy Whitener, Ghee and Butter.
• The Dairy has embarked on Environmental Protection, Energy Conservation Programme and have been suitably recognized by Bureau of Energy Efficiency, Government of India and KREDL, Karnataka.
• Time being the essence of working Mother Dairy has brought the activities under LAN by adopting appropriate technology.
• Any business enterprises assessed for its status on the financial performance and Mother Dairy fully believes in this philosophy and has constantly posted positive financial results ever since its existence.

Product profile(Range of Products) :
“Quality Excellence from Cow to Consumer” – is the motto of the Federation to obtain better-quality Milk and milk products from our value chain (Procurement to Processing to Marketing). Thus milk and milk products, under Nandini brand name, are unmatched in quality made available to consumers at most competitive prices. In a way Nandini Milk and Milk Products are “Spreading wealth of health”.
Milk:

PasteurisedShubham Milk Nandini Double HomogenisedGoodlife Slim Milk
Toned Milk Toned MilkGoodlife Milk

Cow's Pure SampoornaSmart Double
Milk Standardised Milk Toned Milk

Curds & other fermented products:

Yoghurt Real Thick Curd CurdButter Milk Premium Set Curd
Curd Large

Sweet Lassi Milk powder:

Dairy Whitener Skimmed Milk Powder Badam-Powder Ghee & butter Ghee inButter Salted Ghee In BagGhee in Pet Jar Ghee in Sachet
Standy Pouches & Unsalted Icecream& Frozen Desserts:

Crazy Cone Ice Cream Butter Nandini Magic Strawberry PistaKulfi Scotch Chocolate

Chocobar Ice Cream Delightfully Tasty Ice Cream Delightfully
AnjirTasty Chocolate

Ice Cream Delightfully Tasty Ice Cream Delightfully Tasty Ice Cream Delightfully
Vanilla and Strawberry Black Currant Tasty Mango

Ice Cream Delightfully Tasty KajuDraksh Ice Cream Delightfully
Tasty KesarPista
Nandini Sugar Free Pro MatkaKulfiIce Cream Delightfully
Tasty Butter Scotch Biotic Frozen Food

Ice Cream Delightfully Dolly Stick Ice Cream Ice Candy Tasty Pineapple Raspberry & Orange Mango

Sundae Ice Cream Sundae Icre Cream Casatta Ice CreamBall Ice Cream
Strawberry Butter ScotchVanilla Strawberry
Milk Sweets:

Mysore Pak KhovaJamoonsDry Fruits BurfiRossagollaAssorted sweets

Coconut Burf Vermicelli Payasa Chocolate BurfiNandini BitePeda gift boxMix (Kheer)

Premium BadamburfiPremium BesanLadooPremium Cashew Burfi

Pure Milk Elachi and KesarPeda
Other Products:

Nandini Cream Process Cheese Nandini Sugar Diced PaneerDharwadPeda SpreadFree Peda

Cheddar Cheese Flavoured Milk Flavoured Milk Flavoured Milk
StrwaberryPista Mango

GulabJamoon Mix KundaKhovaPaneer
Chocolate:

creamy bite EclairsGoodlifeEclairsChit Chat

Trade Marks:
Karnataka Milk Federation (KMF) sells products by the name of Nandini.
Mother Dairy, Bangalore, a flagship dairy of KMF having ISO22000:2005 Certification, was set up during the year 1984. Dairy cares for quality, hygiene and food safety and hence the dairy was certified for certified for ISO 9001-2000 during the year 2000 and has been certified for ISO 22000-2005 during 2008.

Recognitions:
Karnataka State entirely covered by Dairy Development.
Includes 170 milk unions.
Operates in over 285 districts.
Covers nearly 1,01,000 village level societies.
Is owned by nearly 11 million farmer members.

Awards:
Energy Conservation Award received on 14th Dec 2004 & 2005 by Dr.Manmohan Singh, PM of India &Dr.A.P.J.AbdulKalam, President of India
Energy Conservation Award received in the year 2006 & 2007
National Energy Conservation Award- (IInd PRIZE)by the Union Minister for Power Mr. SUSHIL KUMAR SHINDE
Energy Conservation Award
Shimoga Milk Union and Bellary Milk Union have won national award for the
Energy Efficiency in dairy sector during 2010.
Hassan Co-operative Milk Producers' Societies Union Ltd. “National energy conservation award” 4 times for implementation of energy conservation programmes.

INTRODUCTION OF DAIRY INDUSTRY:
Industries whereby milk and milk products are handled are known as DairyIndustry. Dairy Industry includes all the firms dealing with the processing of milkand manufacturing of milk products and their marketing in industrial scale. DairyIndustry is a very important and the basic industry for country like India. Nearly70% of the people in India is based on agriculture and most of them havecattle's (cows and buffaloes) in their houses. Indian Dairy Industry is dominatedby cooperative sectors for so many years. Indian dairying is emerging as asunrise industry. India represents one of the world's largest and fastest growingmarkets for milk and milk products. World focus on India for this industry arebecause of low cost economy, liberalization process, low inflation rate,inexpensive labor, largest democracy, no government interference, etc.On the peasant milk producers of Khaira district, Gujarat the NDDB (NationalDairy Development Board) was set up under the chairmanship of Dr. VergheseKuriene in 1970 under the programmed, the Anand Dairy of Khairawasdeveloped first. Khaira is one of the India's flushest milk tracts and isdistinguished by a famous dairy procurement, processing and marketing co-operative established at Anand in 1946.India has a long tradition of keeping milk animals as a part of the farminghousehold.

Name of the enterprise &Year of Establishment:
Brief History of Amul
Anand milk union ltd. had been established in the year 1938. Mr. VallabhbhaiPatel was the president of this organization. Previously this unit was startedunder the name of KDCMPUL(Kaira District Co-Operative Milk Producers union Limited)In February1955, new dairy was established and than Mr.Kurian&Mr.Philiphave thought to name this unit as Amul was registered in 1957.For the establishment and development of AmulMr.vallabhbhaiPatelTribhovandas Patel, Bhailalbhai (Bhaikaka) and Mr.Kurian have played animportantRole.With the time Amul is developed in 1966-67 Amul have started to produce babyfood. In 1970-71 new factory was established in Mogar in 1974. In Amulchocolates has been introduced in 1976. Nutramul was introduced.In Nov, 1973 GCMMF (Gujarat Co-Operative Milk Marketing Federation) waselected and Kurian was elected as president. This federation has startedmarketing of dairy production from 1st
April 1974.The production capacity is increasing day to day. And right now the collection of milk is 7.73 crorekgs. They are having Production unit at Mogar, KhatrajandAnand.They are producing milk powder, butter, Ghee, Chocolate, Milk food, Cheese,shreekhand etc. which are being marketed by GCMMF.

No. of. Employees and brief profile of employees
Employees
735 employees of Marketing Arm. However, real pool consist of 3.03 million milk producer members
Members:
13 District Cooperative Milk Producers' Unions
No. of Producer Members:
3.03 million
No. of Village Societies:
15,712

Profile of CEO/CMD:
R S Sodhi's
MANAGING DIRECTOR at GCMMF (AMUL)
CGM at GCMMF LTD
GOVT. SCHOOL, Sector 1 and 3,R K PURAM, NEW DELHI, CTAE,UDAIPUR, IRMA, ANAND
MANAGING DIRECTOR
GCMMF (AMUL)
Government Agency; 501-1000 employees; Dairy industry
June 2010 – Present (2 years 4 months)
CGM
GCMMF LTD
Government Agency; 501-1000 employees; Dairy industry
June 2004 – June 2010 (6 years 1 month) working with GCMMF for the last 29 years. joined as Sr Executive(sales)

Board of Directors/Management Profile:
Mr. Ramsinh.P.Parmar (Chairman) Mr.Rajendrasinh.D.Parmar (Vice Chairman) Mr.Mansinh.K.Chauhan. Mr.Dhirenbhai.A.Chavada. Mr. Pravinsinh.F.Solanki Mr.Bipinbhai.M.Joshi Smt.Madhuben.D.Parmar Mr.Bhaijibhai.A.Zala Mr.Shivabhai.M.Parmar Mr.Chandubhai.M.Parmar Mrs.Sarajuben.B.Patel Mr.Maganbhai.G.Zala Mr.Ranjeetbhai.K.Patel (Additional Director) Mr.B.M.Vyas(GCMMF) Mr.Deepak Dalal (Co.operative department Gujarat) Mr.Rahul Kumar (Incharge M.D)
RESEARCH METHODOLOGY
There are several important aspects to research methodology. This is a summary of the key concepts in scientific research and an attempt to erase some common misconceptions
The increase in milk production by peri-urban small-scale farmers in Botswana has been the major objective of the Ministry of Agriculture in the past six-year NDP 6 (Ministry of Finance Development Planning, 1985). It was thought that increased production in this sector would not only increase local supplies for home consumption but could also lead to surpluses available for sale to the rapidly increasing urban population. With increased urbanisation, the demand for milk and milk products increased by 15% during the NDP 6. In 1985, Botswana imported 80% of its fresh milk needs and the entire requirement for other milk by-products. Today the country spends about 16 million Pula (an equivalent of US$ 8 million) annually on these imports (Ministry of Finance Development Planning, 1991). This is a food security issue and cannot be left unchecked. In response, investigation programmes into milk production systems were initiated in 1979 (APRU, 1982).
The development of a milk industry in Botswana is affected by both technical and non-technical constraints. Cattle production depends on the availability of adequate feed supplies and good management. Recurring drought, unreliable rainfall and poor soil fertility cause feed supplies to fluctuate both in quantity and quality. Protein and mineral content of the natural pastures is generally low, especially during the dry season. Conservation and storage of feed from the time of its maximum availability to the time of its use could be a useful strategy. Though crop residues are available after grain harvest, the use of these plant materials as livestock feed by the small-scale farmers is constrained by lack of transport, labour and the long distance between homestead and fields.
Improvement of the Tswana breed for milk production has been done through crossbreeding by using performance tested Simmental bulls. The major problems affecting the provision of this service to livestock producers are: inadequate artificial insemination facilities; insufficient numbers of selected bulls for interested farmers; and the shortage of qualified personnel at both technical and professional levels.
Livestock diseases have been controlled quite effectively through strategies developed by the Department of Animal Health and Production. Despite this, problems such as the lack of veterinary requisites, capital, transport and qualified staff to conduct research and field investigations pose problems in the control of livestock diseases.
Surplus milk produced in the traditional sector during the wet season is fermented to make madila (sour milk). The long distances involved, lack of transport and of proper cooling facilities preclude the sale of fresh surplus milk in urban areas.
A small-scale dairy research programme was conceived and implemented to diagnose the major constraints contributing to low milk production, followed by on-farm testing of alternative technologies. An on-farm dairy research project was started and located in the traditional farming area in the Gaborone Region. The aims of the project were (1) to examine the potential for increasing production of milk and milk products; (2) to test management technologies developed on-station to improve milk production; and (3) to evaluate the economic viability of these interventions. This project is jointly financed by the Government of Botswana and the International Development Research Centre (IDRC) of Canada. To date, there are 46 farmers participating in the project and all of whom practise mixed crop-livestock production within the Gaborone pert-urban communal areas.
McKinsey and Co’s 7S Framework provides a useful framework for analyzing the strategic attributes of an organization. The McKinsey consulting firm identified strategy as only one of the seven elements exhibited by the best-managed companies.

SWOT ANALASYS OF AAVIN
Strength :-the companies main strength is its goodwill and the brand loyalty which it has, and also the experience in the diary field.and also the brand image it has created by the pat years help te brand to stay in the market
Weakness:-the companies strategies to face or to handle the newer competition is not up to the mark.and also due to lack for progress and lacking the board directors adds draw back to the company
Opportunity:-as the company has still not expanded it can put its hands into different branches and enlarge its zones.evin though the company did not show the progress in the pasy years to the past years it has been growing in fast rate showing the porgress
Threat :-the competition in its field is cutthroat so any wrong strategy would have a siver effect on the companywill be put through the boling point which decides the companys participation for the future

7’s of Aavin:
Structure:-the companies structure is downward management as the organization is larger.its networking the basic organization of the company, its departments, reporting lines, areas of expertise,and responsibility(and how they inter-relate)
Strategy:-the companies strategy what we can see is that its actually expanding is branches in different milk products and also entering the foreign market. The directions of the company is for long terms
Skills:-thebest skill what we can see is the companies response to the compatation around it by utilizing .the capabilities and competencies that exist within the company.what it does best
Staffing:-the companies staffing is not up to the mark ,but its not the fault of the employees. The companies people resources and how they are developed, trained and motivated
Shared values:-the values and benefits of the company. Ultimately they guide employees towards valued behavior.
Sytle:-the leadership approach of top management and the companies overall operating approach.
System:-formal and informal procedures that everyday activity covering everything from management information system through to the systems at the point of contacts with the customer

SWOT analysis of Amul:
Strength
•Largest food brand in India
•High Quality, LowPrice
•World'sLargest Pouched Milk Brand
Annual turnover of US$1504 million
•Highly Diverse Product Mix
•Robust Distribution Network
Weaknesses
Risks of highly complex supplychain system
•Strong dependency on weak infrastructure
•Alliance with third parties who do not belong to the organized sector

Opportunities
•Penetrate international markets
•Diversify product portfolio to enter new product categories and expand existing categories like processed foods,chocolates etc

Threats
•Competitors-HindustanLever
Nestle
Britannia
•Stillcompetition from MNCs in butter •Growing price of milk and milk products •Ban on export of milkpowder

7’S model

7’S ofNandini :
Shared values:-
Shared Values or Super Ordinate Goals refer to the long term of anorganization. “Hard Minds” refer to the financial performance of anorganization. According to Pascale an enterprise that cannot generate a profitis not adding enough value to perpetuate its right to exit, but when short-term profits are over emphasis, a company’s long-term competitive positioncan be sacrificed. Hard- minded values are tied to goals that areunambiguous and quantifiable
Strategy:-
Strategy is the Systematic action and allocation of resources toachieve company aim. It also refers to the determination of the purpose andthe basic long-term objective of an enterprise and the adoption of course of action and allocation of resources necessary to achieve these aims.

Structure:-
The structure of the organization is basically a network of authorityand responsibility, which has been assumed by and delegated to theemployees. Organizational structure defines the pattern of formalrelationship of superior and subordinate. It may be regarded as network or role, relationship, assigned work and delegated authority of employees. It provides the basis on which the managers and non-managerial employees perform the job assigned to them. A Study on Working Capital Management at KMF
Staffing:-
Staff mainly refers to the people in the organization or enterprise.KMF views people or employees as valuable resources wherein theycarefully nurture, develop, guard, and allocate them, they believe intransparency as the basis foundation for employing people.

Style:-
“Style refers to the way the management behaves and collectivelyspends its time to achieve organizational goals or aims”. KMF a dopts various styles for the growth and welfare of the organization .

Skills:-
Waterman Etal consider “skills” as one of the most crucial attributesor capabilities of an organization. The term “skills” include thosecharacteristics, which most people use to describe a company.Hindustan Lever is known for their marketing skills,

System:-
A system in the 7S framework refers to all the rules, regulations and procedures both formal and informal that complement the organizationstructure.KMF has its own system, rules and procedures to follow which helpthe company to develop a talent pool with competence to take challenges of present and future. The organization has its own information system,manufacturing process and control process that aims to delight the customersthrough good quality products, services and solutions

SWOT of Nanadini :
Strengths
Huge Demand
There is a huge demand for Nandini milk and milk products in the market. Milk is very much needed for the children and the people to get good calories,vitamin and nutritional. There is increased population in India, hence there is increased demand for the milk products
Availability of Milk
Union can easily get required milk with less cost from the rural area according to the need. Most of the farmers in Hassan district are having at least 2 or 3 cows or buffaloed in their home. Hence there is a good availability of milk for KMF.
Brand Nandini
Nandini milk, Nandini ghee, Nandini curd etc Nandini products are well branded in the market because of their quality.
Man Power
There is well experienced, professional trained technical employees are working in the company with minimum experience of the years. It helps organization to maintain the quality of the product.

Weakness
Inadequate Transportation
Bad condition of roads and inadequate transportation facilities make milk procurement problematic.
No Cattle Form
KMF has no cattel form in its own, it becomes one of the major weakness of the company.
It focused more only on rural segment and very less concentration on urban area.
New employee has less social security eg: accommodation is not provided to new employee where in it restricts their stay for a lond period.
No credit business.
Limited advertisements.

Opportunities
Export
There is demand for Nandini Products in other states viz Kerala, Goa.
So it can export its products to those states along with Tamilnadu and Andhrapradesh.
New Product Innovation
Its can innovative new products like Khoa, Icr cream, Pannier and dairy sweet in the same product line.
Employment
It provides more employment opportunity to the people. Current there are 500 new employees are working in the organization.
Young, enthusiastic employees put their best efforts, which results in the growth of organization.
The brand, image of the firm helps it yo enter new areas quickly.

THREATS
Market uncertainty
There is a price flucatuation in the market, it may leads to decrease the demand and there by reduction in profit.
Competion
Competitors are coming up with similar product, this is the main threat posed by the external environment.
Many private firms have entered into
Manufacturing of dairy products,there
Is a tough competition for Nandini
Like Arokya, Jersy, Jenukal and many more

COMPARITIVE ANALYSIS
AavinAmulNandini
Name of the enterprise &
Year of Establishment Established in 1958

Established in 1975
No. ofEmployees and brief profile of employees 32870

52000
Profile of CEO/CMD
Mr R. Balakrishnan

Sri.G.Somasekhar Reddy
Total Share Capital & Share holding pattern

Total Sales Turn Over including foreign sales

17323.0

5823.69
Board of Directors/Management Profile

Major Competitors
Amul,nandani,mother diary and other private companies

Heritage,Arogya,Nandi& other privates companies
Annual Growth rate last 5 years
The average growth of the company is 20%(19%,21%)

No of Subsidiaries (If applicable)

Headquarters

The Tamil Nadu Cooperative Milk Producers Federation (AAVIN) is located at 13°9′10″N 80°14′40″E AavinIllam, Madhavaram Milk Colony, Chennai.

Karnataka Co-operative Milk Producers' Federation Ltd.,
KMF Complex, D.R.College Post,
Marigowda Road, Bangalore - Karnataka.
Market Share [during last three years]

Mergers and Acquisitions, Joint Ventures , collaborations & Strategic Alliances

Diversification and other businesses (If applicable)

Nature of business & main business & other businesses.
Product profile (Range of Products)

No. of Patents/ Trade Marks/ Copy Rights (if any)
The company has a registered trademark,

Karnataka Milk Federation (KMF) sells products by the name ofNandini.

Market capitalization (incase of public company) in India or abroad

Number of awards & Recognitions
The company has got many awards namely

Market capitalization (In case of listed public company)

Litigations

CONCLUSION
Thus this industrial review project has helped me to gain familiarity with the presents status of the the Indian diary and to reveal the trend and tendencies in the business, i.e., to assess the growth or expansion potential of the business. This project has also helped us to identify the influencing factor or determinants of business parameters and successfully find he various pros and cons of a company. A thorough knowledge of the company and the industry has been gained through this project

Bibliography:
Aavin
www.aavinmilk.com
Wikipedia
Magazines www.scribd.com www.moneycontrol.com
Nandini
www.kmfnandini.coop/ www.scribd.com www.slideshare.net www.wikipedia.org/wiki/Karnataka_Milk_Federation