Supply Chain Managment
Supply Chain Managment
Supply Chain Managment
INTERNSHIP REPORT ON
BY: SOWMIYA.L
REG NO: U19GE21C0376
UNDER THE GUIDENCE OF
PROF: MOUNIKA.K L
ASSOCIATE PROFESSOR OF COMMERCE
GOVERNMENT FIRST GRADE COLLEGE KGF 563122
Government of Karnataka Department
of College Education
GOVERNMENT FIRST GRADE COLLEGE
Rajiv Gandhi Layout (KUDA), Robertson pet, K.G.F-563122
Phone: 08153-295863 e-mail:gfgc.kgf@gmail.com Website: www.gfgc.kar.nic.in/kgf
NAAC Accredited with CGPA 2.64GradeB+
COLLEGE CERTIFICATE
Principal
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Government of Karnataka
Department of Collegiate Education
GOVERNMENT FIRST GRADE COLLEGE
Rajiv Gandhi Layout (KUDA), Robertson pet, K.G.F-563122
Phone: 08153-295863 e-mail:gfgc.kgf@gmail.com Website: www.gfgc.kar.nic.in/kgf
NAAC Accredited with CGPA 2.64GradeB+
of VI SEM B.COM of our college. He has prepared an internship report entitled “AN
North University.
Guide
Seal & Signature:
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STUDENT DECLARATION
DATE: Signature
PLACE :
SOWMIYA. L
ACKNOWLEDGEMENT
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The successful completion of this internship report required significant
guidance and assistance from many individuals, and I am truly grateful for their
support throughout this journey.
I am also deeply grateful to our faculty coordinator, Prof. Mounika.K L, and our
principal, Dr.K.NARAYANA, for their unwavering support and for granting me
the valuable opportunity to intern, which has been instrumental in my learning
and exposure to the field of accountancy and finance.
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TABLE OF CONTENTS
SL.NO PARTICULARS
1 Executive summary
2 Introduction
4 Experiential Learning
6 Bibliography
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Executive Summary
The Karnataka Milk Federation (KMF) is a prominent dairy organization
dedicated to the production, processing, and distribution of milk and milk
products in the state of Karnataka, India. As a cornerstone of the dairy industry.
KMF plays a private role in supporting the livelihoods of thousands of dairy
farmers access the region while ensuring the delivery of high quality dairy
products to consumers. Through its extensive network of dairy cooperatives and
state-of-the-art processing facilities, KMF maintains stringent quality standards
and embraces innovative practices to meet the evolving needs of the market.
Over the years, KMF has demonstrated robust growth and sustainability,
reflecting its commitment to excellence and its deep rooted values of integrity
and social responsibility. As an intern, my experience at KMF has provided
valuable insights into the complexities of the dairy industry and the multifaceted
strategies employed by KMF to thrive in a competitive market landscape.
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CHAPTER-I
INTRODUCTION
Project is an exchange of knowledge for experience between the students and organization
for a particular period of time. The project also helps the students to determine if they have an
interest in a particular career or do they want to shift from the present one. Project is a given
to work at a firm for a fixed, limited period of time.
The project also helps to create a network of contacts, to acquire recommendation letter
which 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 practically 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 the future. Therefore, this makes the interns fit in those responsibilities when coming out
fresh has a graduate. The project was for a period of 15 days it helps to acquire the
knowledge and experience of the business world for us as a student.
INDUSTRY PROFILE
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 source of cheap and nutritious food for many of people in the nation. It is the
source of animal protein for segment a large vegan population, especially in India, especially
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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 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
term 1 "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 developed in those countries till the attention
of the population in the city has reached a great level in the centre of the 19th century. In our
nation 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 19th century, however, technology of milk market considered
were launched in 1965, with the Aarey milk station operation.
HISTORY
The development of Indian dairy industry took its shape after white revolution. The white
revolution increased the milk production from 17 million tons (1950-1951) to 110 million
tons (2008-2009). Before independence dairy industry was not progressive practiced as a
rural cottage industry, semi commercialized started with Military dairy, Farmers, Co-
operative unions, until the year 2001.
Our nation was not least observed by many international 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 milk 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 the efforts of operation flood programme and the National
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Dairy Development Board under the leadership of earlier Chairman of the of dairy
development board DR Kurian. Till the year 1940, there was as very slight information on the
modes of preparation and use of milk related products. The praise for the 1" 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 these four 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, milk unions at the middle level and a dairy
development corporation at the state level as an apex body, which was vested with the
responsibility of implementing Rs.51 crores project. At the end of September 1984, the
World Bank-aided project ended and the diary development activities continued under
"Operation Flood-II
In respect of IDA assistance under Bangalore Milk Union Limited, dairy development
activity took place in the district in 1975. Later, the neighbourhood was hooked from 1-4-
1987 to the area of operation to make a different union called milk (KOMUL). Cattle Farm is
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the favourite friend in the neighbourhood, which later contributes to the district's total
revenue and dairy to main activity in the region. The dairy sector was developed in the
district in 1975 with regard to IDA assistance under Bangalore Milk Union Limited. KOMUL
is 2nd main dairy farmers of Karnataka organization of the neighbourhood. It is an organ-
level district of cooperatives of milk in Karnataka, which aims to provide the well-paying
refers to the former by removing intermediaries and also improve the level of interest of
consumers by offering quality of milk and 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 milk required for
ultra -high temperature milk packed in Kolar unit
under the name of Nandini "goodlife ".The komul have milk sorting to Kolar with a capacity
of handling of 2,70 lakhs litter's/day and centres Marc Sadly and Gowribidnur of cooling with
each 1 LDPD ability respectively. It began selling liquefied milk in polythene bags in Kolar
district and parts of the city of Bangalore since 1994 mnemonic symbol of the NDDB has
been implemented by the union Recently there Chennai market also by the sale of 5000 liters
per day.
UNION PROFILE
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.
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Union was started in the year 1987 with 460 functional DCS, as at the end of AUG-2023
Union has 2248 Registered Dairy Co-operative Societies and Commissioned 2241DCS, of
which 1921MPCSare functional. Total Members enrolled are 3,06,665 of which 1,02,740 are
Small Farmers, 1,02,988 are Marginal Farmers 55,097 are Agriculture labourers 44,840 are
Others. 83,113 are Women Members 47,843 are Schedule Caste 31,137 are Schedule Tribe,
and 1807 are OBC 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 payRs31.90 to Producers. In 2021-22 the Union has paid Rs932.12 crores
to milk producers. In AUG-2023 Union has paid Rs73.55 cores
1. To improve Dairy farming activities in rural area by establishing Milk producers co-
operative 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 service, Infertility camps, Aid
services, Artificial insemination, and Mass Vaccination programme against diseases.
5. To provide necessary training for producers, members and staff of the Dairy co-operative
Society.
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7. To eliminate middleman by organizing MPCS which is owned and managed by then
selves.
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 service to the milk producer with technical inputs like
veterinary service, seeds, ete, and also by giving training to farmers and induction program.
The union also takes study, growth and also other promotional activities for the overall
benefit of the farmers.
Organizational positions
DCS categorizes Member-producers and dairy cooperatives (DCS) are the essential
constituents of the union and their progress is the criterion of judgment 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 a total of 1750
revenue villages in the 1653 Dairy Co-operative societies (DCS) scope on
if with 145 inclusive women's dairy cooperative societies there are some milk producers'
276001 members out of which 69918 are members of women there was a growth in regular
membership Komul is certified for ISO-22000-2005 for quality management and food safety.
KMF Kolar (Karnataka Milk Federation). KMF Kolar is also know as Komtä, komml dairy is
and unit of KMF komul dairy was set up in the year 1984
• To sustain mark et leadership in the production and marketing of the milk product
produced
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• To provide the products to customers with an affordable prices
At the beginning mother dairy was set up for dispensing the liquid milk for the customers
using the vending system. Today the mother dairy stands expanded from 2 lakh litres to 7
lakh litres milk processing per day. It has the facility to pack and distribute milk and curd in
different formats in the most hygienic way. Mother dairy has an UHT plant through which it
produces the flavoured milk. The milk powder plant has the capacity to convert 3.4 talk litres
of milk into 30 tonnes of milk powder. It also has an ice cream plant where it can
manufacture over 30 different varieties of ice cream including sugar free ice creams. They
convert over 15000 litres of milk per day into ice cream. It has a butter manufacturing plant
where it has a capacity of producing 800kg of butter per hour and the monthly average butter
produced is around 440 metric tonnes where the butter is also exported to different countries.
The ghee manufacture plant has an capacity 133 Mts and exported to Dubai and supplied to
famous Tirumala Tirupati temple. Other products such as paneer, buttermilk, yoghurt, lassi
and curd are also manufactured in the mother dairy.
Company summaries:
Location:-
Vision:-
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Mission:-
To protect and promote the interest of producers and consumers through manufacture and
marketing of milk and milk products prepared as per latest technology which are healthy,
tasty nutritional, reasonable- priced and delivered consistency.
Values:-
Best quality.
Committed customer care.
Cost effectiveness.
Environmental Policies:-
All the operations are carried out in a way that minimises global environment. This is
applicable in the area of production, packing and other places where waste materials can
originate from the sources.
Glass Policy:
KMF is committed to adopting a policy of glass breakages, free process in its premises. By
this commitment, Mother Dairy minimizes the risk of potential product contaminations by
glass.
1. Nandini dairy whitener :- This is made from pasteurised fresh milk and added
sugar to it.
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Then processed by spray during technology. Available in 20g,40g,200g,500g,and 1kg.
2. Nandini Skimmed Milk powder:- This product is made from fresh skimmed milk
by evaporating and spray drying. Available in 50g, 100g, 200g, 500g, 1kg, 20kg polypack
and 25kg paper bag.
1. Ice-cream plant:-
KMF has the facility to manufacture more than 30 variates of ice cream including sugar free
ice-creams in oder to covert 15000 litres/day of milk into ice cream.
Manufacturing of ice-creams:-
Milk, sugar, cream, stabilisers and flavoured are mixed together to create the ice cream base.
In order to eliminate the harmful bacteria and ensure product safety the mixture is
pasteurised. For the development of the flavour the ice-cream base is kept for several hours
and then depending on the flavour different ingredients are added. Then the mixture of the
ice-cream is transferred to the freezer where it is cooled. Later the packaging is done where is
mixture will be stored in cups, tub or cones according. For the hardening of the ice-cream the
packing will be sent to low temperature freezer where it will get its final product.
Available in:-
Family Packs in 500ml, 1000ml, 1250ml packs. Cones in 60ml and 120ml packs.
2. Butter: Butter is one among the major production product in KMF Kolar. Butter is
manufactured from fresh cream using advanced technology (state of art technology). The
butter making machines have a capacity of producing 800kg/hour. The monthly average
butter produced here is approximately 440 metric tonnes. The butter which produced here is
exported to different countries. This plant has a storing capacity of 600 metric tonnes of
butter.
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Manufacturing process :-
First the collected and stored milk will go through a process called as separation where the
cream is separated from the milk. Then the separated cream goes through pasteurisation
process where the harmful bacteria is removed from the cream. The pasteurised cream is left
to ripen for a certain period of time for the flavours to blend in and gives the best taste of
butter. The ripped cream is churned in order to remove the liquid portion. This process goes
on until the molecules club together to form butter. Later the butter is washed with cold water
to remove butter milk and whey. Then the butter is weighed and packed accordingly.
Products available:-
Nandini butter salted in 10g, 200g and 500g packs. Nandini butter unsalted 200g and 500g
packs. Nandini salted blister pack in 10g packs.
3.Ghee
Ghee is manufactured from the best butter that is produced from the same organization. The
latest technology is used to manufacture the ghee in this organization. The monthly average
production of the ghee in this organization is 133 make to stock. This ghee produced is
exported to Dubai and the ghee produced by the organization also used to supply the ghee
for Tirumala Tirupati temple.
Manufacturing process :- The milk which is collected and stored will go through
separation process where the cream and milk separated. Pasteurisation is done in order to
remove the harmful bacteria. Churning is done in order to make the butter and later it goes
through a butter separation process where the butter and the liquid from the butter are
separated (liquid separated from the butter is buttermilk). Then the collected butter is heated
in large vessels, as it heats the water content in the butter starts to evaporate and milk solids
starts to separate form the fat. Finally the butter fat is filtered in order to remove the
impurities. It goes through quality control where the ghee is tested by taking the sample the
factors like colour, aroma, taste is tested.
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Products available:
Nandini ghee in pet jar in 100ml, 200ml, 500ml, 1litres and 5 liters. Nandini ghee in pouches
available in 50ml, 100ml, 200ml, 500ml, 1 litre pouch.
4. Paneer :-
Paneer is an major product of mother dairy and it is produced by Subham milk. It is a fresh
and nutritive product that is manufactured in the product plant of KMF. It has the capacity of
producing 1800 kgs per day. It is available in the packs, block and diced manner. Monthly
average production of paneer is 45mt. To be stored at 40 degree Celsius until used and it has
a shelf life of 30 days when it is stored below 40 degree celsius.
5. Curd, Yoghurt :- With the help of curd there are few more products which are
manufactured in the plant. The products such as buttermilk, lassi (flavoured lassi and plain),
yoghurt are manufactured. Curd is white thick coagulated mass having little or no whey
separation. Yoghurt is white thick mass having little or no whey separation with added fruit
flavour to it. Yoghurt are to be stored at 4-80c. Buttermilk are prepared from curds of the
toned milk having minimum fat. They have to be stored at less than 40 degree celsius. Lassi
are prepared form curds of toned milk having minimum fat and added sugar to it. To be
stored at less then 40 degree celsius. Card, buttermilk and lassi has a shelf life of 2 days when
kept in below 40 degree celsius. Yoghurt has an help life of 15 days when kept in below 40
degree celsius.
Manufacturing process
The collected and the stored milk firstly goes through an process called pasteurization where
the milk is heated at a certain temperature in order to remove the harmful bacteria in the milk.
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Later the pasteurized milk is cooled and a small amount of live culture is added to the cooled
milk. The bacteria added will initiate the fermentation process of the curd. The fermentation
process is a process where the milk gets thick and settles as curd. Later it is cooled and
stabilized to stop the fermentation process at last they are packed and sealed to prevent
contamination.
As the butter milk is the by product of the curd they are also manufactured alternatively. It is
the liquid that remains after the milk is churned. For the liquid which is left out spies are
added in order to make them flavoured. Lassi are made from the fresh curd that is
manufactured from the plant. KMF produces mango lassi where the mango fruit flavour is
added in order to give the taste of the mango fruit
Nandini yoghurt is made from the pasteurized milk by added natural fruit pulp and crush. The
fruit pulp is the one which gives the yoghurt a flavour.
Available in-
Nandini yoghurt in 100g cup (mango and strawberry) Nandini mango lassi 180ml and 200ml
pouches.
Nandini thick curd in containers 200g and 400g containers. Nandini curd in 200g, 500g, 1kg
and 6kg pouches
Nandini buttermilk in 200ml sachet and 160ml and 200ml tetra brick packs. Nandini lassi in
200ml (sweet and plain.
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 the Breadth of KOMUL in its product is 5 that is KOMUI. deals with
products such as liquid sachets, peda, curds, ghee and butter milk. Depth refers to the
assortment of different sizes, weight, models offered within each product
PRODUCTS AT KOMUL
MILK
GHEE
CHEESE
CURD
BUTTER MILK
GOOD LIFE MILK
State-top vending and the most well-known milk with a minimum of 3.0% fat and min 8.5%
SOLID NOT FAT content make this milk the finest choice for all purposes and for all kinds
of people. Obtainable in200ml, 250ml, 500ml, ETC.
Nutritious homogenized milk with 4.0% fat and 9.0% SOLID NOT FAT wuh added solids.
Much thicker and tastier. Good for preparing thick curds, Offered in 200ml/250ml, 500ml
and I liter pouches.
Rich in Nutrient Homogenized milk which contains minimum 3.50% fat and minimum
8.50% SOLID NOT FAT. One can enjoy the thickness of the milk, thus preparing more cups
of tea and coffee.
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This is different from pasteurized milk tones it is toned double milk. homogenized with 1.5%
fat and SOLID NOT FAT minmum.9% minimum. Ideally it is best suitable for health aware
people and seniors. Obtainable in 200ml, 250ml, 500ml, and 1ltr packs.
Pure pasteurized standardized milk having 4.50% fat and 8.50% (SOLID NOT FAT), treated
with various ingredients of healthy milk for healthy growth especially in growing children.
Obtainable through 200ml, 250ml. 500ml and one liter.
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Pure purified complete cream mix with 6% fat and 9% (SOLID NOT FAT). High in cream
along with taste. This milk is perfect for making household sweets. Offered 200ml/250ml,
500ml and 1Ltr.
GOODLIFE
Nandini good life from cow's milk- toned milk is Ultra -high temperature processed milk
with min. 3.0% fat 8.50% Solids Not fat (SNF) levels. Suitable for the entire generation.
Available in 100ml, 200ml and 500ml packs and it also available in 1 and 10ltr tetra
pouches.
SLIM MILK
Good life thin skim milk is ultra-high temperature milk treated with maximum 0.5% fat and
SOLID NOT FAT min 9.0%, Perfect for a healthy lifestyle among the women, the young
aware of fitness and seniors. Available in packs of thin 500ml and also available1 liter tetra
brick.
SAMPOORNA
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Sampoorna homogenized standardized ultra -high temperature processed milk. Which
possess protein rich milk with min 4.50% fat and min 8.50% SOLID NOT FAT for boosting
good strength in rising children Available 500ml and 1liter tetra packs.
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 a component in many
dishes. Available in 200gm, 500gm, and 1kg pockets.
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Spiced buttermilk by nandini is a refreshing tastier healthy drink is made from quality curd
and combined with normal seasoning and condiments to give that stimulating spicy tang of
traditional spiced buttermilk. It promotes healthy and easy digestion available in 200ml.
It is made from cow's milk using a unique method and strict quality standards. The taste of
purity. There specific grading with quality foods and sweet foods and has assured by A-Mark
100 ml 200 ml to 500ml
CHEESE BY NANDINI
Cheese offered by nandini contains rich sources 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, jalapino 200g, chilly garlic 200g,
Slice 100g, 200g and 750g. Processed cheese blocks 1kg, 400g, Mozzarella cheese
NANDINI SWEETS
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MILK PEDA
Mouthwatering Peda is made from clean milk. Single piece is enough to fulfill the heart with
its milk flavor. Obtainable in packs of 25gm, 100gm and 250gm 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 ghee used while preparing will surely melt
hearts when it is consumed. Offered in 25g, 250g and 500gpacks
Nandini (KOMUL) has a long traditional of maintaining the highest quality standards, rights
from selection of raw milk to processing and packaging 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 (DCS) ambit out if which 127 are inclusively
Women Dairy Co-operative Societies. The reason why its products are much in demand
nationally and are exported regularly to states like Andhra Pradesh, Tamil Nadu, Kerala,
Maharashtra, Goa, and all over Karnataka.
3.3 Regional:
1. Pricing strategy
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2. Promotional strategy
3. Marketing strategy
Komul dairy ensures to provide the best quality of milk and milk products to their consumers
in the kolar city through network of different types of retailers, sachets etc. Komul dairy is
distributing an average of 3.5 lakh litres of milk per day to its consumer and it also supplies
40000kgs of curd every day. There are Nandini shops which works 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 pricing of the products are fixed by the KMF (Karnsataka 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 in order to reach their
customers and make them aware of Nandini products to the customers
3. Marketing strategy
Komul dairy uses various modes of promotions in order 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 equipments for their distributors
of their milk and milk products. These things are provided by the milk union to their KMF
units.
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4. Sales promotional activities
Door to door campaign - this is a process where the sales team go the customers to do
an door to door campaign in order to promote their products. This is done by
questioning the customer's, 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 the important persons like government officers,
doctors and professionals.
The consumers are invited to the plant in order to give them awareness about their
brand and products.
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CHAPTER-III
EXPERIENTIAL LEARNING
During the internship at the Karnataka Milk Federation (KMF) Dairy, we typically encounter
adynamic and enriching environment that offers
valuable hands-on experience and insights into the dairy industry. From the moment Istep
into the dairy facilities, l immersed ni various aspects of dairy production, processing, and
distribution, gaining firsthand exposure to the intricacies of this essential sector.
loften find myself working alongside experienced professionals, who serve as mentors and
guides imparting knowledge and expertise garnered through years of industry experience.|had
the opportunity to engage in diversetasks and projects, ranging from milk procurement and
quality control to marketing and research initiatives, depending on my area of interest and
specialization.
growth. It offered me aunique opportunityto gain valuable industry exposure, expand my skill
set, and make meaningful tor, setting the stage for a
During my internship at the Karnataka Milk Federation (KMF) Dairy, I undertook a variety
of tasks unable hands-on experience and insights into the dairy industry. One of my primary
responsibilities was to assist in milk procurement and quality control processes. This
involved accompanying KMF staff to milk collection centres, where | learned to conduct
qualitytests, analyse milk samples, and ensure compliance with established standards.
Overall, my internship at the Karnataka Milk Federation Dairy was a rewarding experience
that allowed me to gain practical skills, industry knowledge, and professional networks. {t
provided me with a comprehensive understanding ofthe various facts of dairy production,
marketing, and research, setting the foundation for a successful career in the dairy industry.
During my internship at the Karnataka Milk Federation (KMF) Dairy, Iacquired a diverse
setof skills and faced several challenges that ultimately
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contributed to my professional growth and learning experience. Oneof the key skills
Ideveloped was proficiency in milk quality testing and analysis, which involved conducting
various tests to ensure compliance with stringent qualitystandards. Throughhands-
ontrainingandguidancefrom experienced staff, learned to use laboratory equipment,
interprettestresults,
However, overcoming these challenges provided me with valuable lessons that have
strengthened my professional capabilities. {learned the
CHAPTER-IV
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INTERSHIP OUTCOMES AND CONCLUSION
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 out 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 comprise 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 in order 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
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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 in order 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 avoiding 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 also 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 amidst being carried to milk industry.
Once the tankers/vans arrive at the dairy industry, they drop the milk in the factory and take
on 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 the milk quality
qualifies the required standard If it de milk is sent for further processing otherwise discarded
at the initial stage itself. Here, some part of milk is pasteurized and packed an appropriate
packaging, generally called milk pouches These pouches are distributed all the places within
24 hours. It is termed as liquid milk and supposed to be consumed within the same time
frame. While in some pouches, required preservation 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 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
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4.1 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 final destination. Milk is the
most important for each and every retailers and even customer satisfaction and there
feedbacks to retailers to increase sales.
Planning
Information
Sourcing
Inventory
Production
Transportation
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 MII.K.
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
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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.
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 the production starts.
A. 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 the 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 orders received to
avoid wastage Supply chain management helps do this with excellent visibility across the
various supply chain functions.
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
1.Information
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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 material 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.
Nothing can be as distressing for a union to see that there are orders that cannot be 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.
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 mich money is held up, causing cash flow problems. 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 department so that they
will produce only what is necessary
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 ability of raw materials. Suppliers can information about any expected short
supply of milk. 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.
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A. Information to customer about Milk Arrival
One thing that people love about online retailers is the way in which information flows from
them about orders, When an orders is placed with these sellers, customers start getting
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:
2. 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 a 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.
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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.
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 se suitable for keeping low inventories. But the
firm must have an accurate forecast of market demand the on-time delivery model is ideal for
companies with varying order levels. Suppliers are sent only when the Organization places
the order.
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:
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3. 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 it
affects a business.
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
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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:
4. 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
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
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critical in this kind of industry. The inventory will be minimal as raw materials will usually
be purchased only after an order is received.
A. 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.
B. Mass production:
This is used for producing a large number of 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.
C. 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 automated to
a great extent. 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
Improved specialization
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GENERAL INFORMATION
BOARD OF DIRECTORS
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SI NO Names Designations
CONCLUSION
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On this study, I tried 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 retailers and gives
more satisfaction level. The most retailers are satisfied with chain management and their
products and services.
The company can make friendly relationship towards company to improves their business
and to make consumer happy relationship with the company.
BIBLOGRAPHY
https://www.kmfnandini.coop/
https://www.komul.coop/
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