INTERSHIP REPORT

ON
“A STUDY ON INTERSHIP REPORT ON LOGISTICS AND SUPPLY
CHAIN AT KMF”

INTERSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF THE DEGREE OF

BACHELOR OF ARTS (BA)

OF
BENGALURU NORTH UNIVERSITY

By
GANGOTHRI K H
REG NO:U19GB21A0095
UNDER THE GUIDANCE OF
Mrs. K SHANTHAMMA
Assistant Professor Head
Department of Sociology

GOVERNMENT COLLEGE FOR WOMEN

KOLAR 563101
 STUDENT DECLARATION
I GANGOTHRI K H,Reg No. U19GB21A0095 , hereby declare that
this report entitled “A STUDY ON INTERNSHIP REPORT ON
LOGISTICS AND SUPPLY CHAIN AT KMF, KOLAR branch”
during the summer vacation between the period from 14-05-2024 to
31-05-2024 at Komul , Kolar branch under the supervision and
guidance of PROF. K SHANTHAMMA Assistant Professor Head
Department of Sociology Government college for women kolar.

Date : Signature
Place: Gangothri K H
Reg NO:U19GB21A0095
 ACKNOWLEDGEMENT

The successful completion of this internship report required signification

guidance and assistance from many individuals and I am truly grateful for their
support throughout this journey.

Firstly, I would like to express my sincere appreciation to Mr.UDAY KUMAR,

Assistant manager KOMUL of Kolar For providing me the opportunity to intern
at their esteemed organization.

I am deeply grateful to our faculty coordinate Mrs K SHANTHAMMA and our

principal Dr GANGADHAR Rao, for their unwavering support and for grating
me the valuable opportunity to intern, which has been instrumental in my
learning and exposure to the field of accountancy and finance.

I would like to extend my heartful thanks to my parents for their permission and
constant encouragement throughout their internship. Additionally, I am thankful
to my friends for their support whenever I needed their assistance during this
project.

Lastly, I would like to express my profound gratitude to all individuals who

directly or indirectly contributed to the completion of this report.
 INDEX

CHAPTER CONTENT PAGE NO

1 INTRODUCTION

PROFILE OF THE ORGANIZATION

2

EXPERIMENTAL LEARNING
3

INTERNSHIP OUTCOMES AND CONCLUSION

4

BIBLIOGRAPHY
5
 CHAPTER-1
INTRODUCTION

Project is the exchange of knowledge for experience between the students and organization
for a particular period. The project also helps the students to determine if they have any
interest in a particular career or do they want to shift from the present one. Project is given to
Work at the firm for fixed, limited period.
The project also helps to create a network of contacts , to acquire recommendations letter Can
be added to the curriculum vitae and it can also gain certain for the curriculum vitae .Projects
are often taken as a way to develop the capabilities by practially applying the theory
knowledge while learning in a professional work environment While doing a project with an
organization , we get to learn about the various roles and responsibilities that can help in
future .Therefore , this makes the interns to fit in those responsibilities when coming out fresh
has a graduate . The project was for a period of 15days it helps to acquire the knowledge and
experience of the business world for us as a student.
ABOUT THE TOPIC : SUPPLY CHAIN MANAGEMENT TOWARDS
KMF [KARNATAKA MILK FEDRATION].
It is an initiative to close a gap between knowledge and application through a series of
involvements that students of Sahyadri degree college BCOM program allow information and
explore towards the industry. The study is carried out from 20-03-2024 to 08-04-2024.

alconceptu BACKGROUND OF THE SUPPLY CHAIN OF MILK IN

KOMUL
The Dairy Supply Chain or Cow-To-Consumer process as it is generally called is a model for
milk procurement and production of assorted products made of milk like cheese, butter,
curds, ghee, ice-cream, etc.
Let's analyses the dairy production procedure and find out the stage's dairy milk goes through
until it finally reaches consumers.
The dairy farming process begins by milking the cattle. A farmer manages a small dairy farm
where milking is carried out. Milking is a crucial activity forming the maiden point of milk
business chain contributing to the overall milk production. The farmer extracts milk from
mulch animals, traditionally cows and buffaloes either manually using his hands or
mechanically through a dairy farm equipment called milking machine. He milks the cattle
two times a day, the first shift takes place in the morning and the latter one in evening. The
milk produced during the day is collected into large cans and taken by the farmer to a nearby
Village Dairy Cooperative Society (DCS) for milk testing and analysis.
DCS comprises of milk collection centers that operate at the village level. A center constitutes
a panel of villagers that head and operate it and members comprised of farmers who deposit
their milk to Dairy Cooperative Society. A member who operates the milk collection center
takes a sample of milk brought by the farmer and tests it using a milk analyzer/electronic
milk tester/Gerber. The tests are carried out to evaluate the quality of milk based on essential
parameters like fat content in milk, the amount of Solid Not Fat (SNF) present, the density of
milk, and check for any milk adulteration (determined by the proportion of water residues
present in milk). SNF consists of proteins (casein and lactalbumin), carbohydrates (lactose)
and minerals (calcium and phosphorus) that altogether maintain the required texture of milk.
All the resulting values are noted down corresponding to the respective parameters. A final
amount of payment is calculated on the premise of the values obtained which is subsequently
paid to the farmer. The members collectively look after the milk society. thereby maintaining
transparency and trust. All the milk that is accumulated by DCS is either stored in Bulk milk
coolers (BMC) or sent in cans to nearest chilling centers of the Union.
BMC is a large storage tank that holds milk at a cold temperature until picked by milk tanker
vans. These tanks are available in varying capacities of 1.5, 2, 3, 5, and 10 tons. BMC is
deployed at all DCS to preserve the quality of milk, eliminating curdling and adulteration,
and spillage of milk. A monitoring system is attached to the BMC that logs and tracks milk
quantity, along with a compressor that maintains the temperature of milk inside the tank.
Also, an agitator is implanted within the tank which keeps rotating to avoid icing of milk.
Power supply through a generator or direct line is also monitored by this system. In addition
to this, a BMC helps in cutting down the transportation costs as chilling of milk at primary
dairy can be avoided, resulting in better returns to the farmers. Thus, the milk collected at
DCS is supplied to the milk industry for further milk processing and to export markets. The
transportation of milk is done by refrigerated/insulated milk tankers vans. The milk contained
in the BMC tanks is emptied into these tankers and transported to the milk industry. These
tankers primarily maintain a suitable temperature for milk to avoid souring while being
carried to milk industry. Once the tankers/vans arrive at the dairy industry, they drop the milk
in the factory and take other routes to collect more milk. At the dairy plant, the collected milk
is processed to produce various products. But before processing, it is tested again to check if
the milk quality qualifies the required standard. If it does, milk is sent for further processing
otherwise discarded at the initial stage itself. Here, some part of milk is pasteurized and
packed in appropriate packaging, generally called milk pouches. These pouches are
distributed to all the places within 24 hours. It is termed liquid milk and supposed to be
consumed within the same time frame. While in some pouches, required preservatives are
added to increase the shelf life of milk and retain its quality at the same time. This milk is
delivered to those places which are located far away from the milk industry, and it takes
comparatively longer time to reach there. The remaining part of milk undergoes various
necessary procedures to derive other dairy products like cheese, cream, butter, powdered and
condensed milk, yogurt, ice-creams, chocolates, and much more. Each product is
derived from milk.

.1 SUPPLY CHAIN MANAGEMENT OF MILK IN KOMUL

It is a process of flow of goods, data, and finances related to a product or service, from the
procurement of raw materials to the delivery of the product at its destination. Milk is the most
important for each and every retailer and even customer satisfaction and there feedbacks to
retailers to increase sales.

Supply Chain Management

1.Planning
2. Information
3. Sourcing
4. Inventory
5. Production
6. Transportation
7. Return of Goods
1. Planning
Supply chain planning can simply be explained as planning the supply of materials caused by
demand from customers. But the process is not so easy as told. Every aspect of the MILK
must be planned very carefully. One must start with planning the demand moving on to the
source, manufacturing, storing, and delivery. As each of these is highly important, one must
look at. them separately in detail. As with everything in a union, we must start with the
customer's end from where the demand comes .
Milk soft online app and indent helps to forecast milk in next day.

A. Demand plan:
The market demand for milk will dictate all activities in a union. If organization can know the
demand accurately, they can plan production, raw material purchase, and storage of goods in
a better manner. This means that demand planning is the basis for all. other planning
activities. Using the historical data of the union itself is an excellent way. to forecast demand.
Latest technologies like Milk soft App and Indent help to know. precisely how much Milk is
needed at different times of the day.

B. Supply planning:
Once a demand is know, it is easy to decide what quantity of milk must be produced. Once
this quantity is arrived at, the next step is to plan the purchase of raw materials that a
company must keep ready. One must also check if all the other items like packing, labels, etc
are available to deliver the goods in the best manner. The purchasing team must ensure that
everything needed is available by the time production starts.

C. Production Planning:
The production team must plan the manufacture of the required products. They must ensure
that is possible to delivery of milk to the customers on they committed dates. The department
must make sure that there is enough production, capacity to give timely delivery to the
customer. Union must produce only items, according to the order received to avoid wastage.
Supply chain management helps do this with excellent visibility across the various supply
chain functions.
D. Sales and Operations Planning:
This planning intends to bring together all entities concerned with the delivery of milk to the
customer. The sales team must bring with the expected market demand for a period. The
integration of both teams helps the union to reduce over-production and wastage of milk. It
also make sure that customers get the product they ordered on time.
Benefits of Planning
• Availability of raw materials
• Delivery of goods
• Avoiding excess production
2. Information
Information is a vital component in supply chains because there are various internal and
external entities in this system. Without a proper flow of information, no work can get done.
The supply chain is a continuous process, and so the information must also flow
continuously. While the materials mostly flow downstream, cash will flow upstream from the
customer to the supplier. But the information in this system flows in both directions. This
must happen on time and without any interruption. That is why most union use milk soft
software that will automatically share information with all the concerned people.

A. Information results in Order Fulfilment

Nothing can be as distressing for a union to see that there are orders that cannot executed due
to want of material unless a union knowns what orders can be expected in the near future, it
cannot plan production to fulfill them. This information must flow from the customers to the
company. Orders placed by the customers must reach immediately. Distributors and retailers
must also pass information about their requirements to replenish stocks and ensure customers
get the goods.

B. Information Helps cost Saving:

To save the cost of inventory precise predication of future sales is necessary. This information
must go from the sales teams or channels partners to the production It is common knowledge
that keeping high inventory can cost the union heavily. Inventory is a money invested without
any returns. Only when materials sold, do goods have any value. If they are lying at the
warehouse, that much money is held up, causing cash flow department so that they will
produce only what is necessary.
C. Information for Adequate Raw material stock:
As we have seen communication will happen in all directions in a supply chain. Having good
relationships with external entities help companies to optimize their production. Purchase
managers should remain in regular contact with the vendors. This will help to know the
position of anoty of raw materials, suppliers information abour any expected short supply of
mik This helps the union to stock adequately and avoid a shortage of items. Information
about price variations will also help purchase departments to plan their raw materials
purchase in a better way.
D. Information to customer about Milk Arrival
When an orders is placed with these sellers, customers start getting One thing that people
love about online retailers is the way in which information flows communication about the
movement of goods. This keeps the buyers happy because they know exactly where the items
are at any moment. Such information is essential to keep the customers happy and loyal.
Benefits of information:
• No shortage of raw materials
• Customer updated
• Product availability ensured

3. Sourcing
There can be no doubt that sourcing is the next important step in the supply chain. Supply
chain management courses teach us that sourcing doesn't just mean the purchase of raw
materials. There are many elements in sourcing that the sourcing manager must attend to. The
quality and price of raw materials can have a lot of impact on the finished goods and their
acceptability in market. This is why one must understand this activity in detail. Many external
entities and factors are involved in this function. Let us see the different steps in sourcing.

A. Finding a Supplier:
This is the first step in sourcing companies that have a stable and regular business need not
perform this step. But for new companies and those who are in the growing phase, this is a
critical activity. One must look at the experience and reputation of the suppliers. It is also
necessary to see if the vendor can offer all the items or at least many items that are needed.
They must also offer flexible payment methods. Purchase managers must also check the
quality of products and services provided by the company.

B. Finalizing the source:

Once the company has identified the supplier, it is the best to meet the person and discuss the
terms for the business. Those attending the logistics and supply chain management course
learn that it is best to discuss all the details at the beginning so that both parties know what
they are getting into. important aspects like payment terms, delivery schedules, must be made
clear. One must also secure an assurance from the supplier that they will rise to the occasion
and support the company in cases of extraordinary situations.

C. Delivery Models taught in a supply chain course:

There are different delivery models to choose from depending on what will be most suitable
for a union. They can use a continuous replenishment model where small batches of materials
are sent in regular intervals depending on the inventory and order positions. This allows a lot
of flexibility. The just-in-time delivery model is suitable for keeping low inventories, but the
firm must have an accurate forecast of market demand. The on-time delivery model for
companies with varying order levels. Suppliers are sent only when the organization places the
order.

D.Entering a Contract
Once everything is finalized, it is best to enter into a contract. Oral agreements have no value
and leave room for disputes. It is best to have an agreement drawn by an advocate with terms
from both sides included. This will pave the way for smooth transactions with less need for
frequent discussions. Details about the items to be supplied, including their quality, should be
mentioned in the contract. The delivery model and method must also be mentioned. The
period of the contract and payment terms should find a place in the document Benefits of
sourcing:
• Helps get regular raw material.
• Supply Ensuring raw material availability
• Avoiding ambiguity terms
4. Inventory
Inventory is another crucial element of a supply chain. It refers to all the items that are in
stock
in a company. This could include raw materials, finished goods, or other materials like
packing
goods that are needed to ensure that the customers get the product when they need it.
Inventory
in service industries could be tools, gadgets, or machinery used to service the customer. As
inventory is one of the major expenses of a company, it is worth seeing how itaffects a
business.
A. Inventory and Customer Satisfaction:
Maintaining inventory can be expensive. Whether it is unfinished or finished products, the
company must have paid for what is remaining at the warehouse. Keeping a low inventory
can benefit the firm financially. But it cannot afford to miss fulfilling an order because there
was no material. Customers today expect companies to deliver goods immediately. This
means that the organization must keep the items in stock as finished goods or raw materials
that can be immediately converted to products.
B. Cost of Inventory:
Keeping goods at the company costs money. Keeping a lot of materials can help in fulfilling
orders immediately. But keeping them for a long time is an unwanted expense. The company
will invest money in raw materials which may not be used for a long time. The more they lie
idle, the more the company loses. It is the same with finished goods too. Companies must
keep an optimum level of goods for fulfilling orders without losing money.
C. Recording inventory:
Keeping track of the available goods in a company is very important. This is called the
recording of inventory. Some companies use the periodic method. This is a simple method
where the actual count of goods available is taken at regular intervals. This will show the
increase or decrease and can be compared with sales and goods received for accuracy. The
other method is the perpetual method, where the entries are made every time there is a
change. Every entry and exit of goods is recorded, and this may need special software for
accuracy.
D. Inventory Analysis:
Inventory analysis helps to see how the demand for different products changes over time. It
will allow companies to have an optimum level of stock. It will help in servicing the
customers in a better way. This analysis is done by classifying the goods that will cost less to
stock. The second type consists of those items that are fast-moving but cost more to store.
The third category is that of goods that are slow-moving and expensive to keep in stock.

Benefits of Inventory:
• Ensures timely delivery of goods.
Reducing cost of inventory.
• Enabling smooth production.

5. Production
This is the stage where the raw materials are converted into finished goods. This component
of the supply chain also includes packing and testing. The storage of data, condition of
production facilities, measuring performance, and compliance also are included in
production. This activity is dependent on the other elements of the supply chain like market
demand, sourcing, and inventory. Proper planning is essential to ensure that production
happens on time to ensure the supply of goods to the customers. Logistics and supply chain
management courses teach four types of production.
This is the stage where the raw materials are converted into finished goods. This component
of the supply chain also includes packing and testing. The storage of data, condition of
production facilities, measuring performance, and compliance also are included in
production. This activity is dependent on the other elements of the supply chain like market
demand, sourcing, and inventory. Proper planning is essential to ensure that production
happens on time to ensure the supply of goods to the customers. Logistics and supply chain
management courses teach four types of production.

A. Unit production:
In this type, only one unit is produced at a time. All items are made as per the requirements of
individual customers. Creating an outfit as desired by the person. Customer satisfaction is
critical in this kind of industry. The inventory will be minimal as raw materials will usually
be purchased only after an order is received.

B. Batch Production:
Batch production is mostly commonly seen in the consumer goods industry. These companies
have several products or numerous variants of the same product. They may need to produce
all
these items in a specific number depending on the demand. So, each item is produced in
batches of certain quantities as per orders received. Once one batch of a product is started, the
production is stopped only after the set is completely produced. Shopping in the middle of a
batch can end in huge losses for the company.

C. Mass production:
This is used for producing many similar products. The milk union is typical example of mass
production. It also called flow production, as the process flows through an assembly line.
Each workstation in the line has a specific function which it does without any deviation.
Products made in such a method are similar with absolutely no deviation. This method of
manufacturing is highly sophisticated.

D. Continuous production:
This method is often confused with mass production. The main difference is that continuous
production happens all throughout the day with no breaks. It is a 24/7 function. A major
difference between mass and continuous production methods is that the latter is largely
automated. Most plastic products are manufactured in this method. All one needs to do is
Continuously feed raw materials, and the products with hardly any human interference.

Benefits of production:
• Enables customization
• Ensures product availability
• Improved specialization
.Increased automation

6. Transportation of Goods
The supply chain refers to the movement of goods from the raw material supplier to the
customer. If goods must move, there must be a carrier. Transportation is a critical element in
supply chains. Without this component, a supply chain will cease to exist. Transportation
happens in many segments of a supply chain. Goods move from suppliers to the company.
Sometimes they are transported from a central warehouse to different manufacturing units.
Finished goods are sent from the warehouse to distributors, retailers, or customers.

A. Transportation and cost of Goods:

Transportation is a major component of product's cost. With increasing fuel prices, it is
becoming more expensive to move goods from one place to another, having an impact on the
cost of products. This why companies must look at various options to move goods instead of
only depending on one mode. Organization can use different modes of transport for different
products depending on how much returns these items bring.

B. Timely Delivery for Customer Satisfaction:

1. Customer satisfaction is paramount in times when competition is severe, and customer
loyalty is a rare commodity. Buyers have become habituated to getting their orders
delivered very quickly. This puts pressure on the union to look for ways to deliver
goods as fast as possible. But that might increase the cost of transportation, which
will, in turn, affect the company's profitability.
C. Modes of transports:
Road transport is mainly used in a supply of milk. A deep analysis of customers need to be
serviced in a hurry and who can wait. Using this information will help to reduce transport
costs greatly.
D. Overcoming risks in Transportation:
Transportation is rife with risks. Bad roads, inclement weather, or other man-made
disruptions can greatly affect the speed of delivery. Union must consider all these.
Benefits of Transportation
• Ensure customer satisfaction
• Avoids delays
• Reduces Risk
7. Return of Goods Most companies are struggling to meet customer demands with
respect to product deliveries. Will they have time to think about product returns? But they
must. Proper returns policy has become inevitable in today's world. Popular online retailers
have made returns very simple and easy, pushing everyone to follow suit. This is one more
way to keep customers happy and loyal to a brand. Let us see the four basics to be followed
in product returns.
8.
A. Have a goods Return policy:
The first thing to remember is that return of goods is a necessity, and it must be included in
the union polices. Product return is a cross-functional activity that involves all the
departments in the supply chain.

B. Re-entry and Reselling:

When milk packet return back. Ware house managers will enter tem in to inventory .It is best
to ensure visibility in the inventory as soon as possible Inventory visibility helps in making
quick disposition of the item. Good that can be resold are shown in saleable stock
immediately.

Benefits of Returns
• Ensures customer loyalty.
• Improve efficiency.
 CHAPTER-2
PROFILE OF THE ORGANIZATION

The dairy industry is an important industry in India. The nation is the world’s biggest milk
producers, which account over thirteen of the entire milk production .It’s the world major
customer dairy products , eat almost 100% total milk production on its own .Dairy products
are the main sources of the cheap and nutritious food for many people in nation. It is the
source of animal protein for segment a large vegan population, especially in India, especially
among farmers landless and women can only be accepted. Dairy in India has grown rapidly
since. The bulk of the milk and milk products factories were established. As cow is a machine
that transforms raw materials that is plant into food in a way that is unexpectedly well
organized. From a survey conducted there are more than 787 breed cattle followed by 72
Buffalo breeds around the world. Nation has around 30 and 10 unique breeds of cow and
buffaloes, it also plays an important role in employment generation in rural sectors origin of
industry The term1 “MARKET MILK” can be defined as the combination of whole milk that
is sold to individuals usually for their direct consumption .As a large company , the dairy
industry market is of relatively new origin even in well-developed nation in the world like the
U.S. to dairy though olden documents written report milk as an important food, processing
and distributing as a separate business activity has reached a great level in the Centre of the
19th century .In our nations the dairy farm has been practiced as a cottage industry from
simple past .Dairy trade seeds underway with the result of military establishment dairy and
milk cooperatives unions across the nation, in the late 19 th century, however, technology of
the milk market considered were launched in 1965,with the Aarey milk station operation
HISTORY
The development of the Indian dairy industry took its shape after white revolution. The white
revolution increased the milk production from 17million tons [1950-1951] to 110 million tons
[2008-2009]. Before independence dairy industry was not progressive practiced as the rural
cottage industry, semi commercialized started with Military dairy, Farmers, cooperatives
unions, until the year 2001.
Our nation was not least observed by many internationals’ dairy companies across the world,
the main reason was that country was neither an active importer nor an exporter of dairy
products and services.
Even though India has out some powder and butter oil assistance between 1970 and 1990,
transfers from the nation were significantly, when the milk products of India start to be more
presence in the markets of the world. Milk sector transition from a situation of importing
additional net, led by transition he efforts of operation flood programme and the National
Dairy development board DR Kurian. Till the year 1940, there was as very slight information
on the modes of the preparation and use of milk related products. The praise for the 1 st
publication on the subject goes to DR.W.D.Davis , the first head of the industry related
research, Dairy research institute located now in Bangalore .Within the span of of these 40
years since his book appeared, there is a considerable change has been placed in original
dairy products and services. The multilevel, multiunit organization with total vertical
integration of all dairy development activities was set up with dairy co-operative societies at
the grass root level as an apex body, which was vested with responsibility of implementing
Rs.51crores project. At the end of September 1984, the world Bank-aided project ended, and
the dairy development activities continued under “Operation Flood ||

COMPANY PROFILE
In respect of IDA assistance under Bangalore Milk Union Limited , dairy development
activity took place in the district in 1975. Later ,the neighborhood was hooked from 1-4-1987
to the area of operation to make a different union called milk[BAMUL].Cattle Farm is the
favorite friend in the neighborhood ,which contributes to the districts total revenue and dairy
to main activity in the region .The sector was developed in the district in 1975 with regard to
IDA assistance under BAMUL.KOMUL is the 2nd main dairy farmers of Karnataka
organization of the neighborhood is an organization level district of cooperatives of milk in
Karnataka , which aims to provide the well-playing refers to the former by removing
intermediaries and also improve the level of interest of consumers by offering quality of milk
dairy products, with decent quality/price. Once the area was called as land of gold and silk , is
now important in the production of quality milk. Their summer komul first fixed coolers of
milk in bulk and milking machines community’ at the level of society in the state of
Karnataka to get quality of milk required for ultra-high temperature milk packed in kolar
unity under the name of Nandini” GOODLIFE”. The komul have milk sorting to Kolar with a
capacity of handling of 2,70liters/day and centers Marcs Sadli and Gowribidnur of cooling
with each 1 LDPD ability respectively.IT began selling liquefied milk in polyether bags in
kolar district and parts of the city of Bangalore since1994 mnemonic symbol of the NDDB
has been implemented by the union. Recently there Chennai market also by the sale of
5000liters per day.

UNION PROFILE
Kolar -Chikkaballapura District Co-operative Milk Producers Union is registered under Co-
operative societies act after bifurcation from Bangalore District Co-operative Milk Producers
Union on 23-03-1987.The area of operation is twin district of Kolar and Chikkabalapura
having 11 taluks,2919villages.

SHARE CAPITAL
The organization started with an original investment of Rs 8.56 Lakhs, which was transmitted
from Bangalore milk union. The present share capital is Rs .73.42cr.
MEMBERSHIP AND SHARE AMOUNT
Union was started in the year 1987 with 460 functional DCS,as at the end of March-2024
union has 2248 Registered Dairy C-operative Societies and commissioned 2241DCS, of
which 1921MPCS are functional. Total members enrolled are 306665 of which 102740 are
small farmers, 102988 are marginal farmers ,55097 are Agricultural laborers 44840 are
others. 83113 are Women members 47843 are Scheduled Caste 31137 are Scheduled Tribe
and 1807 are OBC members.

MILK PROCUREMENT
The present average, milk procurement during the month of march-2024 is 8. lakhs kgs per
day from 1921 comprises of 3.06 lakh members.

MILK PRICE
The cost per kg of milk is calculated based on fat and SNF quality of milk. Basic price is
calculated for 4.0% fat and 8.5% SNF. At present milk is purchased from DCS at price of
Rs33.15 and DCS pay Rs31.90 to producers.In 2021-22 the Union has paid Rs932.12 crores
to milk producers.

MILK SALES
The marketing area includes entire Kolar, Chikkaballapura districts and parts of Bangalore
urban and rural districts. The union sells following varieties of milks.
1.Toned Milk
2.Shubam Milk
3.Samruddhi Milk
4.Double Toned Milk
5.Homogenized Cow Milk.
The other products being manufactured and marketed includes UHT milk, Butter milk, Curd,
Ghee, Peda and Cheese. Besides this, the union routes 120 other products of Nandini
manufactured by KMF and affiliates. The union is increasing its market share steadily.

OBJECTIVES OF THE UNION

1. To improve dairy farming activities in rural area by establishing milk producers’
co-operatives societies [MPCS] under co-operative principles.
 2. To provide assured and remunerative market round the year for the Milk produced
by producer members.
3. To provide package of technical inputs to its Milk producers for the enhancement
of production. This includes facilities such as emergency visit services, Infertility
camps, Aid services, Artificial insemination and Mass Vaccination program
against diseases.
4. Supply of balanced cattle feed at subsidized rate. Fodder development programs,
extension programs.
5. To provide necessary training for producers, members, and staff of the dairy co-
operative society.
6. To facilitate rural development by providing self-employment opportunities for
employed youths for area there are by providing an opportunity for steady income.
7. To eliminate middlemen by organizing MPCS which is owned and managed by
themselves.
8. To provide quality milk and milk products to urban consumers rates consented
from time to time.
9. To uplift the socio-economic status of the rural people.

NATURE OF THE BUSINESS

One of the main functions is procurement of milk, processing it, and marketing milk and milk
products. Komul markets its products and services under the well-known brand name
“NANDINI”. Union processes the milk and carries marketing in urban area through various
agents. The union is providing services to the milk producer with technical inputs like
veterinary services, seeds etc. and by giving training to farmers and induction program. The
union also takes study, growth, and other promotional activities for the overall benefits of the
farmers.

ORGANIZATIONAL POSITIONS
DCS categories member-producers and dairy co-operatives [DCS] are the essential
constituents of the union and their progress is the criterion of judgement on the effectiveness
of the functioning of the union , where maximum emphasis has been focused on the
development and progress in the various activities.
Komul includes the 11 taluk, Kolar and Chikkaballapur district with total of 1750 revenue
villages in the 1653 Dairy co-operative societies [DCS] scope on if with 145 inclusive
women’s dairy co-operatives societies there of there was a growth in regular membership
Komul is certified for ISO-22000-2005 for quality management and food safety.

VISION, MISSION, AND QUALITY POLICY

VISION STATEMENT
“Wish to develop into model milk co-operative in the nation.”
“Kolar-Chikkaballapura Milk Quality will be a Global Benchmark.

MISSION STATEMENT
Kolar Milk Union continuously procures worthy quality milk by providing remunerative
price and technical inputs to producers and supply good quality of Milk and Milk products to
the consumer. It aims to attain top position in the dairy industry by improving the financial
position of the union.

QUALITY POLICY
“We constantly try to develop our internal quality and operating systems by educating Milk
Producer’s and motivating work force to achieve customer satisfaction”.

KOMUL PRODUCT PROFILE

The product profile of KOMUL can be classified into three dimensional that is it has breadth,
depth and consistency. Breadth is measured by the variety of products manufactured. Thus of
KOMUL in its product is 5 that is KOMUL deals with products such as liquid sachets, Peda,
curd, ghee, and butter milk .Depth refers to the assortment of different sizes,weight,models
offered within each product.

PRODUCTS AT KMF
MILK
ULTRA-HIGH-TEMPERATURE MILK
CURDS AND OTHER
FREMENTED PRODUCTS
GHEE AND BUTTER
PASTEURIZED TONEDMILK
States top vending and most well-known milk minimum 3.0%fat and min 8.5% SOLID NOT
FAT content make this milk the finest choice for all purpose and all kinds of people.
Obtainable in 200ml ,250ml,500ml,ETC.

SPECIAL TONED MILK BY NANDINI

Nutritious homogenized milk with 4.0% fat and 9.0% SOLID NOT FAT with added solids.
Much thicker and tastier. Good for preparing thick curds. Offered in 200ml/250ml,500ml and
1-liter pouches.
PURE MILK HOMOGENIZED
RichinNutrientHomogenizedmilkwhichcontainsminimum3.5 0% fat and minimum 8.50%
SOLID NOT FAT. One can enjoy the thickness of the milk along, thus preparing more cups
of tea, coffee.

DOUBLE TONED MILK

This is different from pasteurized milk tones it is toned double milk, homogenized with 1.5%
fat and SOLID NOT FAT minmum.9% minimum. Ideal it is best suitable for the health aware
people and seniors. Obtainable in 200ml, 250ml, 500ml, and 11 IT packs.

SHUBHAM PASTEURIZED STANDRDIZED MILK

Pure pasteurized standardized milk having 4.50% fat and 8.50% (SOLID NOT FAT), treated
with various ingredients of healthy milk for healthy milk for healthy growth especially in
growing children. Obtain able through 200ml ,250ml,500ml and 1 liter .
SAMRUDHI PASTEURIZED CREAMMILK.
Pure purified complete cream mix with 6%fat and 9% [SOLID NOT FAT].High in cream
along with taste. This milk perfect for making household sweets. Offered 200ml/250ml, and
one liter.

GOOD LIFE
Nandini good life from cows milk toned milk is ultra-high temperature processed milk within
min 3.0%fat 8.50% solids not fat [SNF] levels. Suitable for entire generation. Available in
100ml,200ml and 500ml packs and it is also available in 1 liter and 10-liter tetra pouches.
SLIMMILK
Good life thin skim milk ultra-high temperature milk is treated with maximum 0.5% fat and
SOLID NOT FAT min9.0%. Perfect for a healthy life style among the women the young
aware of the fitness and seniors. Available in packs of thin 500ml and also available 1 liter
tetra brick.
SAMPOORNA
Sampoorna homogenized standardized ultra hight temperature processed milk .Which possess
protein rich milk with min4.50% fat and min 8.50% SOLID NOT FAT for boosting good
strength in rising children.Available 500ml, and 1 liter tetra pack .

CURDS AND OTHER FERMENTED PRODUCT

CURD
Nandini curd is prepared from sterilized toned milk. Curd will tastes just like homemade curd
.It can be consumed with combination with cooked rice or extra as component in many dishes
.Available 200gm ,500gm, and 1kg pockets.
SPICED BUTTER MILK
Spiced butter milk by Nandini refreshing tastier healthy drinks made from quality curd and
combined with normal seasoning and condiments to give that stimulating spicy tang of
traditional spiced butter milk. It promotes healthy and easy digestion available in 200ml.

PURE COW GHEE.

It is made from cows milk using a unique method and strict quality standards. The taste
specific grading with quality foods and sweet food and has assured by Ag mark 100ml,200ml
to 500ml.
CHEESE BY NANDINI.
Cheese offered by Nandini contain rich source of protein, calcium, and milk proteins.
Obtainable as processed cheese and cheddar cheese in every Nandini milk parlors. Processed
in the plain 200g cup, capsicum 200g cup, pepper 200g cup, jalapeno 200g, chilly garlic 200g
, slice 100g, 200mg ND 750G. Processed cheese blocks 1kg , 400g, Mozzarella cheese .

NANDINI SWEETS
MILK PEDA
Mouthwatering Peda is made from clean milk. Single piece is enough to full fill the heart
with its milk flavour.Obtainable in pack of 25gm ,100gm and 250 gm of packs.
MYSORE PAK
Karnataka’s one of the oldest and traditional sweets is the one of most preferred choice of
majority people. The tempting smell and taste of the ghee used while preparing will surely
melt the hearts when it is consumed. Offered in 25gm,250gm and 500gm packs.

AREA OF OPERATION
Nandini has long traditional of maintaining the highest quality standards, rights form
selection of raw milk to processing and packing of the end products. Komul comprises of
kolar chikkaballapura district and 11 taluks with total of 2930 revenue villages.
Under the 1612 dairy cooperative societies ambit out if which 127 are inclusively women
dairy cooperative societies. The reason why its products are much in demand nationally and
are exported regularly to states like Andra Pradesh, Tamil Nadu, Kerala, Maharastra, Goa,
and all over the Karnataka.
KOMUL operates in 19 Taluks of 3 districts that is 7 Taluks in Kolar, 6 Taluks in
Chikkaballapura each. It distributes milk with totally 50 routes; 21 routes in Kolar, 18 routs in
Chikkaballapura.
1. Pricing strategy
2. Promotional stratege
3. Marketing strategy
4. Sales promotional activities.
Komul dairy ensures to provide the best quality of milk and milk products to their consumers
in Kolar city through a network of different types of retailers, sachets etc. Komal dairy
distributes an average of 3.5 lakh liters of milk per day to its consumers and it also supplies
40,000 kgs of curd every day. There are Nandini shops which work in the modern format in
order to supply all their milk products to the customers, which also ensures the availability
and reachability to all their consumers.
1. Pricing strategy:
The prices of the products are in such a way that it can be affordable by all the consumers.
The products’ pricing is cost effective.
The pricing of the products is fixed by the KMF (Karnataka Milk Federation) and mother
dairy uses those pricing to sell their products to their consumers.
2. Promotional strategy: -
Komul dairy follows the commercial and informative strategy to reach their customers and
make them aware of Nandini products to the customers.
Advertisement through cable network.
Awareness programs organized by the organization.
Door to door campaign.
Mother dairy provides more incentives to their retailers.

3. Marketing strategy: -
Komul dairy uses various modes of promotions to reach their customers few of them.
are as follows: -Tv, banners, posters, pamphlets and few wall paintings in some areas.
Other than this the mother dairy gives bags, caps, T-shirts, and other household equipment is
for their distributors of their milk and milk products. These things are provided by the milk
union to their KMF units.
4. Sales promotional activities-
Door to door campaign this is a process where the sales team go to the customers to do a
door-to-door campaign to promote their products. This is done by questioning the customers,
issuing the brochures to the customers and by reasoning them. These activities are carried out
periodically.
Organizing meetings the meetings in public places are organized to showcase their products.
This is done by inviting important people like government officers, doctors, and
professionals.
The consumers are invited to the plant to give them awareness about their brand and
products.Participating in exhibitions and trade shows.Window display, boardings pamphlets
wall paintings etc. School students are invited to the plant to make them aware of their
products and promote their products using samples.
 CHAPTER -3
EXPERIENTIAL LEARNING
India is the world's highest milk producers and all set to become the world's largest food
factory. The milk industry in India is witnessing a stupendous growth. The production of
liquid milk touched a high of 85 million tons in 2001-02 placing the industry first in the
world.
Since 1991, after liberalization, anybody and everybody have been free to enter the dairy
industry and to reap benefit from markets that Domestic federations created and nurtured
with their sweat and blood. Multinational, backed by their surplus capital, are seeking hefty
share of Indian Milk and milk products markets. At the same time, regionals private
companies have been able to penetrate markets on the strength of aggressive pricing made
possible by cavalier treatment of taxation laws and quality standards.
This Internship Training was undergone to get the practical exposure of Milk Industry. The
Internship program was undergone in KOMUL

OBJECTIVE OF THE STUDY

The principle objective of the study is to get interrelate the theoretical aspects with practical
things that are moving in Industry, and studying the organization as a whole. Some important
objectives of the study are:
1. To get the practical exposure in the corporate world.
2. To have a proper balance between the theory and practical knowledge.
3. To study Origin Growth, Vision, Mission and Status of the organization.
4. To study the functional departments exists in the organization.
5. To evaluate the effectiveness of the organization
6. To study the problem areas in the organization
7. To provide some valuable suggestion to improve the efficiency in the organization.

SCOPE OF THE STUDY

The study helps to get an overall idea regarding the various department organization and
overall functions of organization. This organization study mainly on processing of milk and
milk products and its quality control.
Apart from this
1. To get a practical vision of the organization apart from the theory which havin the
class
2. To understand the actual working condition.
3. To get in touch with the industrial and organizational environment.
Assumption of the study:
1. The data given by the officials are unbiased.
2. The data collected from various secondary sources are true.
Limitations of the study:
1. Because of official secrecy the manager of the company is not ready to give more
data.
2. Could not get sufficient time to interact much with the senior managers as they are
always busy with their works.

Methodology of the Study:

The required information and data assimilated through two sources: -

Primary Data: -
I. By observing the various department of the organization.
II. By interacting with various employees in the organization.

Secondary Data:
I. From the Company Manuals.
II. Management Books.
III. Internet.
 CHAPTER -4
INTERNSHIP OUTCOME AND CONCLUSION
As a student I got great opportunity to do my internship at KOMUL (Kolar-Chikkaballapura
District Co-operative Milk Producers Union Ltd). It is Karnataka 2nd highest Milk Producing
District organization.
The main purpose of the study is to know the processing of milk and milk products and its
quality control, which are produced by KOMUL. In this in-plant training I have learnt lot.
Interacting with an organization that has existed since long was an experience of a lifetime.
The employees of KOMUL had been of tremendous support to me in doing my project work.
They guided me in every step and gave all the necessary information for doing the
organization study. This has made me learn that people in organization are accommodative in
HR. without their support it would have been highly difficult.

FINDINGS
 The most important that packaging of milk and ghee packaging is not proper from
Karnataka Milk Federation.
 Some of retailers were not getting products through KMF they are getting from
distubuters .
 There is no any online ordering process.
 Technology Development

SUGGESTIONS
 Providing on time delivery of products from Karnataka Milk Federation.
 Providing better packaging of milk and ghee.
 Satisfying retailers through on time supply of Dairy products.
 Allowing for online ordering process.
 Improvement in technology development
 Providing more offers and rewards for retailers to encourage the ordering process.
CONCLUSION
On this study, I tried to out to find out the supply chain management towards the nandini milk
products offered by komul . This study as given clear image about the supply chain and their
delivery of dairy products.
From the following studies, we can conclude that komul has their many retailersand gives
more satisfaction level. The most retailers are satisfied with supply chain management and
their products and services.
The company can make friendly relationship towards company to improve their business and
to make consumer happy relationship with the company.

BIBLOGRAPHY
 https://www.kmfnandini.coop/
 https://www.komul.coop/
 https://www.komul.cooperative.com
 https://app.lrg.wa.gov.com
 https://mel.cgiar.org
 https://www.investopedoa.vom
 Slide share (images)
 indiamart.com
 exporters India
 online dairy shopping
 Reference book [KOMUL]