KMF CATTLE FEED PLANT

CONTENTS:

Sl.No Chapter Page No

1 Exexutive summary, 2 20
Industry Profile, Company Profile
2 Organizational Structure and 21 37
Functional departments

3 Mckinsky-7s Analysis 38 43

4 SWOT Analysis 44 45

5 Analysis of Financial Statement 46 52

6 Suggestios, Recommendation and 53 54

Conclusion

Biblography 55

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CHAPTER 01

EXECUTIVE SUMMARY, INDUSTRY PROFILE

COMPANY PROFILE,

EXECUTIVE SUMMARY

ORGANIZATIONAL STUDY IN KMF CATTLE FEED PRODUCTION PLANT. The

study has been undertaken at KMF CATTLE FEED PRODUCTION PLANT, Sanda
Industrial Area, Shikaripura taluk, Shivamoga Dist. for a period of 4 weeks from 24th July
2017 to 19th August 2017.

This study is an attempt to understand the organization as a whole and to study the different
departments in detail so that as a student get a detailed knowledge about the organization.
The study is directed towards the understanding of functions of different departments.

This plant operates in a series of functional processes. The different operations in the
plant starting from the raw material to the end product dispatching is listed in the
proper sequence as below:

1. Raw material godown (rmg)

2. Sample test
3. Dumping
4. Bins
5. Batching
6. Grinding
7. Mixing
8. Storage powder pellet bins
9. Powder and molasses mixing
10. Steam
11. Pelleting
12. Cooling
13. Sieving & sample testing
14. Packaging & dispatching

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INTRODUCTION

Karnataka milk federation was setup in 1974 on the AMUL pattern it is the third largest co-
operative federation in India and first in south India. There are 17 unions in Karnataka.

In 1960s & 70s the product dominated the market, but presently the scenario has changed
because of the competition (man players in market).Secondly the customer has many
choices to choose a single product, immediately he/she shifts to the other product.

After the liberalization many organizations entered the new markets or expanding business
into new areas and they have set up the plants in different regions in the country. Hence it
has become vital important to local player to compete with them in quality, pricing,
distribution etc. under such condition plays very important to grab even small of the small
opportunities.

It becomes important to update to the market requirement to compete in competitive world.

So to know the market requirement we should have proper information from the market. So
I selected this project, which can serve the specified information, which could help to the
organization to improve the distribution channel effectively in the market. So to serve better
from the existing one.

INDUSTRY PROFILE

INTRODUCTION DAIRY INDUSTRY IN INDIA

Dairy enterprise is an important occupation of farmer. In India nearly 70% of the people
depend on agriculture. It is the backbone of India. Dairy is linked with agriculture
industry to a large extent.

Animal husbandry in India is an essential part of agriculture. It is mainly a rural occupation

closely associated with agriculture.

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DEVELOPMENT OF DAIRY INDUSTRY IN INDIA

During the Pre-independence year there was no serious stress given to dairy industry. In
1886 the Department of Defence of the British Government established the dairy farms
for the supply of milk to the British troops in Allahabad.

Later, in 1920 serious steps were taken by Mr. William Smith, an expert in dairy forming
to improve the milk production There was discrimination done to the Indians hence this
led to the rise of the first milk union in India. In Lucknow in 1937 called the Lucknow
milk producers Co-operative union Ltd.

In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to bring up the economic
stability of villagers. When the farmer Prime Minister LalBahaddurShastri visited the
functioning as it was rendering a social service to the society, which helped the villagers
to come in the national economic stream.

The dairy and Animal Husbandry received serious attention after the independence.
There were lots many of progressive steps taken by the government through five year
plans. This led to the formation of National Dairy Development Board in 1965 & thus in
1970 he decided to Bring a White Revolution throughout the country, Initially 10
states were selected were for this purpose excluding Karnataka.

In Karnataka in 1974 an integrated project was launched to restructure and reorganize

the dairy industry on Co-operative principle of AMUL and to lay foundation for new
direction in dairy industry.

INDIAN DAIRY INDUSTRY PROFILE:

The annual milk production is presently 92 million tonnes, contributing around Rs. 1000
billion to the GDP. Provides assured and remunerative employment round-the-year to 60
million families.

The dairy animals make a substantial contribution to household food security by providing
income, quality food, energy, fertilizer and assets in over majority of the rural households
in India.

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The Animal Husbandry is the single largest contributor under the agriculture sector which
provides a remunerative employment round the year at a very small investment. The dairy
animals make a substantial contribution to household food security by providing income,
quality food, energy, fertilizer and assets in over majority of the rural households in India.

These livestock keepers are constrained by poor animal health and veterinary services, lack
of feed and fodder, water, milk handling, chilling, etc. Besides, there has been lack of
infrastructure facilities such as good roads and access to markets, etc. The livestock keepers
also lack access to advanced technologies as well as proper institutional support system.
The result is that both the production and productivity remain well below its potentials. Thus
the losses and wastages continue to remain high. Adapted breeds and local feed resources
although available, but need proven technology supports in its preservation and processing.
Such support would substantially improve production and productivity, which would result
in higher income for the livestock keepers.

One of the problems faced by India is unemployment, despite the rapid growth rate. The
problem is more acute in rural educated and marginally educated youths, who have no
alternative but to migrate to urban areas. Due to automation in various core sectors, the
employment opportunities have dwindled considerably whereas the service sector has its
own limitations, especially the high investment cost per job created. In this context, the dairy
industry offers a plausible opportunity of creation of self-employment with minimum
investment. There is a scope for doubling the present milk production, which can be
achieved with marginal investment, such a step would not only enhance milk production
and productivity, but also would create millions of additional jobs.

Dairying is, in fact, a supplementary activity of the marginal farmers and the landless
labourers. It is therefore suggested that dairy and such other animal farming be included
within the legal framework of agriculture and agriculture products. This would enable the
marginal farmers and the landless agriculture labourers to benefit from the various
government incentives.

Milk is no more a luxury, but essential nutritional requirements of human being. The
children largely depend on milk for nutrition. Higher milk production therefore will also
increase the health status of the farmers and people at large. Due to several inherent reasons,

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the cost of milk production is high. One of the important reasons is low animal productivity.
Because of high cost, the milk and milk products are not affordable to poor strata of the
society. Milk is a perishable commodity. Hence, its conversion to products, such as, milk
powder, butter and cheese, etc. is necessary. Considering these factors, it is reasonable that
at par with agriculture produce, the milk products be also exempted from any excise duty,
sales tax and such other taxes. This gesture of the government would go a long way in
accelerating the growth of the Indian dairy industry from present annual rate of around 4.5
% to more than 9%.

The conversion of excess milk to milk-products is a necessity. The basic principle here is
evaporation of water which changes its physical form only, whereas there is no change
whatsoever in its chemical composition. One of the reasons of higher cost of milk and milk
products is the cost of packaging. To safeguard the quality and safety for human
consumption, packaging of milk and milk product is necessary. The milk product
manufacturing therefore should be construed as processing milk for preservation and it
should be exempted from all the taxes and duties like excise, central sales tax and octroi etc.
To enhance milk production during the next five years as well as to address the issues
referred in the foregoing sentences, there is an imperative need of policy support from the
government on the following core areas.

NATIONAL DARIY DEVELOPMENT BOARD:

History:

The NDDB was founded to replace exploitation with empowerment, tradition with
Modernity, Stagnation with growth, transforming dairy into and instrument for the
development of Indians rural people.

The NDDB was established in 1965; the board is registered under the Societies
Registration Act and the public Trust Act, fulfilling the desire of the Prime Minister of
India the late LalBahaddurShastri to extend the success of the Kaira Co-operative Milk
producers union (AMUL) TO OTHER PARTS OF India. Dr VergeseKurien was the
founder chairman. The success combined the wisdom & energy of farmers with
professional management to successful capture liquid milk and milk product markets
while supporting farmers investment with inputs and services.

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In 1969, when the Government of India approved the Operation Flood programme and its
financing through the monetization of World Food Programme-gifted commodities, it was
found that the statutes under which NDDB was registered did not provide for handling of
government funds. Therefore, in 1970 the government established a public-sector company,
the Indian Dairy Corporation. The IDC was given responsibility for receiving the projects
donated commodities; testing their quality; their storage and transfer to user dairies and
receiving the dairy payments. Thus it served as finance-cum-promotion entity while the
entire Operation Flood technical support was provided by NDDB. To avoid any duplication
in their activities or overlap of functions, the IDC and NDDB were eventually merged into
a newly constituted NDDB by an Act of Parliament passed in October 1987.

THE GROWTH:

NDDB began its operations with the mission of making dairying a vehicle to a better
future for millions of gross roots milk producers. The mission archived helped to launce
Operation Flood, a programmed extending over 26 years and with the help of World
Bank Loan India become the worlds largest milk producing country. As per March 2001
Indias 96000 Dairy Co-operative are integrated thorough a three Tier Co-operative
structure. The Anand pattern, which is owned by more than 10 million formers, procures
an average of 1605 million litters of milk every day. The milk is processed and marketed
by 170 milk producers co-operative unions which, in turn own 15 state co-operative
milk marketing federation. Since its establishment the dairy development board has
planned and spearheaded Indias Dairy programmer by placing dairy development in the
hands of milk producers and the professionals they employ to manage their co-
operatives. In addition, NDDB also promotes other commodity based co-operative, allied
industries and veterinary biologically on an intensive and nationwide basis.

OBJECTIVES OF NDDB:

To sponsor, promote, manage, acquire, construct or control any plant or work,

which promote projects of general public utility relation to dairying.
To make information available on request to technical services to increase
production of Milk.
To prepare initial feasibility studies of dairying and other dairy related projects
and undertake subsequent designing planning and start up those projects.

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To undertake research and development programmed related to production and

marketing of milk and milk products.
To provide assistance for exchange of information to other international
agencies.

SERVICES RENDERED BY NDDB:

Planning dairy and rural development projects.
Organization of farmer co-operative societies.
Setting up of dairy and cattle feed plants.
Manpower planning and training.
Applied research and development.
Implementation of milk production enchantment programmed.

COMPANY PROFILE:

KARNATAKA MILK FEDERATION:

The first dairy in Karnataka was started in Kudige in Kodagu district in 1955, further in June
1974, an integrated project was launched in Karnataka to restructure and reorganize the
dairy industry on the co-operative principle and to lay foundation for a new direction in
dairy development.
In 1975, the World Bank aided dairy development was initiated. The present Karnataka
Milk Federation (KMF) came into existence in 1984 as a result of merging of Karnataka
Dairy Development Co-operation, small co-operatives and Karnataka Milk Production
Development and loose vendors.
At the end of the March 1998, the network of 8023 Diary Co-operative Societies (DCS)have
been established which are spread over 166 taluks of the total 175 taluks in all 30 Districts
of Karnataka, There are 13 Milk Unions and Dharwad Milk Union (DMU) is one among
them. There are 35 Chilling centres, 3 Farm coolers, 15 Liquid milk plants and Product
dairies for chilling, processing, conservation and marketing of milk. To supply cattle feed
there are 4 cattle feed plants. To ensure supply of quality germ plasma, Bull breeding farm
and frozen semen bank are also available.

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KARNATAKA CO-OPERATIVE MILK PRODUCERS

FEDERATION LIMITED (KMF):

KMF is the apex Body in Karnataka representing Dairy Cooperatives. It is the third largest
dairy co-operative amongst the dairy co-operatives in the country. To impart training,
institutes at Bangalore and regional training institutes at Dharwad and Gulbarga are
functioning. Three nitrogen plants (2 plants of 25 CPM and 1 plant of 5CPM) are been set-
up to supply nitrogen, which is used for Refrigeration purpose. Three diagnostic centres
have been set-up for monitoring diseases: three fodder farms at Rajkunte, Kuttanahalli and
Kodagu have been set-up to supply good quality of fodder and seed production farm at
Shahpur has been set-up.
The federation giving details of the latest technology in dairy industry etc. is published
KsheerSagar magazine monthly.
KMF is a co-operative apex body in the state of Karnataka for representing dairy
Organizations and also implementing dairy development activities to achieve the following
objectives.
Providing assured and remunerative market for all the milk produced by the farmer
members.
Providing hygienic milk to urban consumers.
To build village level institutions in co-operative sector to manage the dairy
activities.
To ensure provision of milk production inputs, processing facilities and
dissemination of know-how.
To facilitate rural development by providing opportunities for self-employment at
village level, preventing migration to urban areas, etc.

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FUNCTIONS OF KMF:
Co-ordination of activities between the unions.
Developing the markets for the increasing in milk production.
To make the brand Nandini as a house hold name.
To increase the market share of Nandini.

THE DISTRICT CO-OPERATIVE SOCIETY (DCS):

It is basic organization unit, functioning at the village level, by training local people to
organize and manage the activities village level institution building and development of
local leadership is promoted.

FUNCTIONS:
It functions daily and acts as a marketing outset for the milk produced in the
village.
Input facilities are also canalized to the dairy farmers through these societies and
include Veterinary First Aid, Sale of Cattle Feed, Supply of Fodder Seeds,
Seedling and Provisions of Mobile Veterinary Health Care etc.
Payment for the milk is done through society.

THE MILK UNION:

Milk union is a channel of District Co-Operative Societies in organized form for milk
Procurement, The procurement route is linked to chilling centre or a dairy. Unions are
formed by federating the societies in locating geographical area. The milk unions are
organized to make them economically viable and the jurisdiction extends from one district
to 3 Districts. There are 5 Milk Unions whos Jurisdiction covers a single district, 4 Unions
covered 2 District, each 3 Unions cover 3 districts and one Unions territory extends to 4
District. All Unions own their own Milk Processing Facilities.

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FUNCTIONS:

These Unions help to organize new Primary Dairy Co-operative Societies. The Union also
helps in managing these DCS by assisting in accounts, purchase, process and marketing
liquid milk. The Union helps in providing all the input facilities to DCS and channelizes the
dairy farmers through DCS. The Union provides the following facilities.
Providing Balanced Cattle Feed.
Providing Animal Health Care.
Providing Artificial Insemination facility for breed improvement.
Providing Training for breeding, feeding management.

MILK FEDERATION:

The main objective of the federation is to help in formation of Milk Unions through the state
and thus forming the state level apes organization. The Federation implements the entire
project activates, after the project activities are accomplished the federation aims at
formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka
Milk Federation which was setup in 1984 has the following functions:
The foremost function of KMF was to co-ordinate the activities between the

Union and also in making market available so that production increases

The Federation also manages surpluses and deficiencies of liquid of milk among

the milk union and help in disposing milk and milk product at reasonable price

The Federation also manages to market the milk and milk products outside the

state.

Provides balanced cattle feed, mineral mixture, frozen semen straws and liquid

nitrogen are produced and distributed to Unions Excellence in quality is

maintained to lay a solid foundation for widespread acceptance of the milk and

milk products.

Training and developing senior managerial personnel, acquiring and applying

all recent technologies, prescribing quality guidelines and norms.

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UNITS OF KMF:

KMF has the following Units functioning directly under its control:

Mother Dairy, Yelahanka, Bangalore.

Nandini Milk Products, KMF Complex, Bangalore.
Cattle Feed Plants at Rajanukunte/Gubbi/Dharwad/Hassan/Shikaripur
Nandini Sperm Station (formerly known as Bull Breeding Farm & Frozen Semen
Bank) at Hessaraghatta
Pouch Film Plant at Munnekolalu, Marathhalli
Central Training Institute at KMF Complex, Bangalore.
Quality Control Lab at KMF Complex, Bangalore

BOARD OF DIRECTORS OF KMF:

SRI P.NAGARAJU
CHAIRMAN
KARNATAKA MILK FEDERATION

H.D.REVANNA
HASSAN MILK UNION

H.G. HIREGOWDA
DHARWAD MILK UNION

K C BALARAM
MYSORE CHAMARAJANAGAR MILK UNION

CHANDRASHEKAR
TUMKUR MILK UNION

K.ASHWATH REDDY
KOLAR-CHICKKABALLAPUR MILK UNION

BETTASWAMY GOWDA
MANDYA MILK UNION

THIPPESWAMY
SHIMOGA MILK UNION

UDAYASIMHA JA SHINDE
BELGAUM MILK UNION

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KRISHNAPPA L BILAKERI
BIJAPUR-BAGALKOT MILK UNION

ARUN V GUTTEDARA
GULBARGA-BIDAR-YADGIR MILK UNION

T PRAKASH
DIRECTOR-GOVERNMENT NOMINEE

SRI RAJEEV CHAWLA, IAS

SECRETARY TO GOK, AH & FISHERIES DEPARTMENT

M K AIYAPPA, IAS
RCS

RAKESH SINGH, IAS

MANAGING DIRECTOR / CEO, KMF

S RAJEEV
Regional Head, NDDB

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KARNATAKA MILK FEDERATION CONSISTS OF:

UNITS NO

Milk units 13

Dairies 17

Liquid Nitrogen Silos 6

Product Plant 3

Training centre 3

Sperm Station 1

Cattle Feed Plant 5

Pouch Film Plant 1

Total 112

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INDUSTRY PROFILE:

COMPANY KMF CATTLE FEED PRODUCTION PLANT,

NAME Sanda Industrial area Shikaripura

NATURE OF Dairy/ Mfg. / Service / Semi-agro based Co-operative Unit.

BUSINESS:

TYPE
OWNERSHIP Co-Operative Unit.
:

TEL-NO: 08187-242222

FAX: 08187-242122

EMAIL [email protected]

RAW Maize, Rice Polish, Cotton Seeds, Rape Seeds, Coconut,

MATERIAL Common Salt, Calcite Powder, DORB, Molasses.

CAPACITY OF
PLANT 300 Metric Tonnes a day

FINISHED Cattle Feed Pellets

PRODUCTS

TOTAL
INVESTMENT 60 CRORES

UNIONS 6 MILK UNIONS

COVERED

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KMF CATTLEFEED PRODUCTION PLANT, SANDA INDUSTRIAL

AREA, SHIKARIPURA

KMF CATTLE FEED PRODUCTION PLANT:

ESTABLISHMENT:
The KMFCFPS is one the 5 establishment, under KMF. The KMFCFPS is one of the most
modern plants in the country. It is located in the spacious 30 acres of land, located in Sanda
Industrial Area, adjacent to the State Highway. It is patterned the AMUL Milk Dairy,
Anand, Gujarat.

HISTORY:
A group of experienced officers, appointed by the Karnataka Milk Federation surveyed the
whole of Shivamoga districts (All village level milk societies) and Uttar Karnataka and
Dakshina Kannada. Further they found out there as a need for a Cattle feed production plant.
They travelled the Surrounding villages educated the villagers about Milk and Milk products
and the benefits they would get from the Milk Dairy. Such as quality cattle feed at reasonable
prices.

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KMFCFPS MISSION STATEMENT:

Heralding economic, social and cultural prosperity in the lives of our milk
producer members by promoting vibrant, self-sustaining and holistic cooperative dairy
development in Karnataka State.

FUNCTIONS OF KMFCFPS:
The main function of KMFCFPS is to procure raw materials from villagers and pay
them the right price.
To educate the villagers about cattle feed and its quality.
To make Nandini as a part of daily life.
To provide good quality of cattle feed, fodder, veterinary properly and in an efficient
manner.

OBJECTIVES OF KMFCFPS:
Providing hygienic and good quality of Cattle feeds to the consumers.
To build the economic strength of the milk products in villages.
To eliminate middlemens in the business so that the milk products receive their
appropriate share of bread.
To educate the villages about the quality of cattle feed comparing other competitor
and its harmful effect on the body of cows.
To see that every citizen becomes healthy by consuming good quality of milk.
To make villagers self-viable and build self-image.

PROCESS AT KMFCFPS:
The raw materials are collected at APMCs or RMCs is brought to the centre carries from
trucks etc. The Quality and quantity of raw materials bought is checked at the Reception
centre by a quality control supervisor.
A sample of raw material is taken and is tested in a laboratory for quality and durability of
product. The raw materials which are collected are stored in dry and cleaned storage
facilities and further processed for production of cattle feeds pallets through electronic
conveyers to advanced machineries. And final product will be cooled and bagged on an
average 50kgs per bags and checked by quality control lab authority and further transported

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to district co-operatives, those district co-operatives will circulate those cattle feed pallets
to all village level farmers for reasonable price.
The nature of business carried is Producing cattle feed pallets and distribution of those cattle
feeds to farmers through DCs.
The vision of the KMFCFPS:
Cleanliness
Total quality maintenance
Discipline
Co-operation.
Transparency.

The quality policy of KMFCFPS is to ensure pure, hygienic cattle feeds products through
continuous improvement of quality standards.
KMFCFPS builds and runs under the co-operative institutions such as,
Karnataka Milk Producers Federation ltd., (KMF)
National Dairy Development Board.(NDDB)
The competitors information:

SKM Animal Feeds and Foods Private Ltd,

Godrej Agro vet Cattle Feeds,
Lakshmi Energy and Foods Private Ltd,

Infrastructural facilities of KMFCFPS are as follows.

Security Facility,
Canteen Facility,
Shifts Facility 3 shifts per day,
Transportation facility,
First Aid,
Intercoms and Land Line,
Speediest Internet,
Diesel Generator,
Storage,
Accommodation,

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FUTURE GROWTH AND PROSPECTS:

Procuring and selling 300 Metric tonnes per day
Preparing for ISO-9001 certification.
Marketing quality improvement.
Getting export Grade Cattle Feed Pallets.

PRODUCT PROFILE:

KMFCFPS has only product that is Pallets under brand name

NANDINI GOLD

The cattle feeds pallets will be manufactured through advanced machineries and the raw
materials will be converted into finished product as the formula given for computers. The
pallets consists of the following raw materials according to the percentages,

SL No. RAW MATERIALS PERCENTAGE( % )

1 Maize 39.5%
2 DORB 17.5%
3 Coconuts 12%
4 CSDOC 05%
5 RPO 05%
6 RS DOC 03%
7 Common Salt 02%
8 Urea 1.5%
9 MMCF 01%
10 Molasses 12%
11 Calcite Powder 1.5%
TOTAL 100%
It is available in 50kgs of plastic bag.
Area of operation - Regional

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INPUT REQUIRED PER DAY:

Maize: 118.5 Metric Tonnes.
DORB: 52.5 Metric Tonnes.
Coconuts: 36 Metric Tonnes.
CSDOC: 15 Metric Tonnes.
RPO: 15 Metric Tonnes.
RS DOC: 9 Metric Tonnes.
Common Salt: 6 Metric Tonnes.
Urea: 4.5 Metric Tonnes.
MMCF: 3 Metric Tonnes.
Molasses: 36 Metric Tonnes.
Calcite Powder: 45 Metric Tonnes.

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CHAPTER 2
ORGANIZATIONAL STRUCTURE AND FUNCTIONAL
DEPARTMENTS

2 ORGANISATION STRUCTURE:

GENERAL MANAGER

ADMINISTRATION

FINANCE

STORES

PURCHASES

PRODUCTION

QUALITY CONTROL

Fig: Organizational Structure

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2 .1 ADMINISTRATION DEPARTMENT:

The Administration Department controls the overall functioning of the organization. The
Organization consists of the following three levels.
Managerial cadre includes Managing Director, Deputy Manager, and Assistance
Manager.
Supervisory level included technical officers and supervisors.
Workers level includes labours and helpers.
The Administration Department has the following structure:

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The Administration Department also handles Canteen, Security and Time Keeping
Machine.

2.1.1 CANTEEN:

There is a canteen in the premises itself. The employees are provided lunch, tea etc., at
reasonable rates. The canteen is handled by the canteen-In charge.

2.1.2 TIME KEEPER:

This department records the working hours of the employees. Time machine shows the entry
time and exit time of each employee. The workers divided into different shifts control the
working of the department. Each employees are authorised for BIO METRIC MACHINE,
whenever an employee enters the premise he has to punch Finger in the time machine and
before living the premise he has to do the same. Based on this attendance, canteen bills are
charged, wages are fixed and deduction are made.

2.1.3 SECURITY DEPARMENT:

The KMFCFPS occupies 80 acres of land the whole premise is been guarded by the security
personnel. The security people work in three shifts. All the vehicles are checked before
entering the premise. The department is also maintains separate registers like store-in
register, attendance register etc.
2.1.4 SKILLS:
The skills here refers to the various skills the workers have here the workers are further
Divided into three categories; this first category contains the people who are in the top
management level the second category consists of the supervisors office assistants etc. The
Third category consists of the supervisors office assistants etc. The third category consists
of the workers at the operational.
The first category consist of the people who are in the decision making process in KMF
these people are highly qualified few Deputy Managers are to industries like IRMA, Anand
dairy for Training.
The second category is related to office work and fieldwork. These people are also trained
in Computer Applications, secretarial skills, accounting skills etc.
The third level people consist of the workers who are actually into the operation these
People are also trained into fields like checking the quality of food processing packing etc.

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2.1.5 TRAINING SYSTEM:

The plant emphasizes on training the employees. Most of the training given to the employees
here are On-the-Job training and few Off-the-Job Training.
Procurement and Technical Input Training (NDDB)
PG Diploma in Rural Management
Basic Computer Applications.
Data Base Administrator
Finance Training for non-Finance Officer
Co-Operative management Training Programs.

2.2 FINANCE DEPARTMENT:

2.2.1 THE STRUCTURE OF FINANCE DEPARTMENT IS AS SHOWN

GENERAL MANAGER

ACCOUNT OFFICER

ACCOUNT ASSISTANT

HELPERS

This Department is responsible for keeping all the inward and outward flow of money of
union. It prepares budget every year and financial rules for receipts and payments are
framed. The functions of these departments are;
To prepare monthly accounts (Receipts and payments account P&L account and
Balance Sheet).
To prepare quarterly financial statement.
To prepare integrated business plan.

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To prepare year ending financial statements.

To get accounts audited from statutory books of accounts.
KMFCFPS, Follows two types of auditing;
1. Pre-Audit System-done by Finance and Accounts Department every year.
2. Statutory System-Done by private charted accounts every year.

2.3 STORES DEPARTEMENT:

2.3.1 THE STRUCTURE OF THIS DEPARTMENT IS AS SHOWN.

GENERAL MANAGER

STORES OFFICERS

STORES SUPERINDENT

ASSISTANTS

HELPERS

Stores department helps the production by supplying adequate raw materials purchased
under E-Procurement of Govt. Of Karnataka. The stores department maintains the records
of purchased raw materials and sold finished goods. Store department has large and cleanly
maintained go downs which are used for storing the raw materials and finished products.
It tries to maintain maximum and minimum level of inventory so as to avoid
blockage of capital and storage.
Ordinary and local available commodities are maintained at minimum possible level.
Items of urgent and not easily available are stored sufficiently for further demand..

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2.4 PURCHASE DEPARTMENT:

2.4.1 THE STRUCTURE OF PURCHASE DEPARTMENT IS AS

FOLLOWS:

GENERAL MANAGER

PURCHASE OFFICER

ASSISTANTS

HELPERS

The main work of this department is to purchase various materials required by different
department. After ascertaining the stock position by stores department and indent is sent by
different department duly approved by the Purchase Officer. This department act to
purchase materials.

It also maintains records of all the suppliers calls for Tenders, quotation etc. Quotations
with lowest rate are sanctioned. Purchase up to 1, 00, 000 can be made by Purchase
Department. If the purchase amount is more than 1, 00, 000 then the purchase will be made
through E-Procurement website of Government Of Karnataka.

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2.5 PRODUCTION AND PROCESS DEPARTMENT:

2.5.1 THE PRODUCTION STAFF CHART IS AS FOLLOWS:

GENERAL MANAGER

TECHNICAL OFFICER TECHNICAL OFFICER 2

1

MAINTANANCE

DS SHIFT 1

DS SHIFT 2 DAIRY SENIOR

SUPRIVISORS TECHNICIANS

DS SHIFT 3
ELECTRICAL HELPERS
SUPRIVISORS

SENIIOR
TECHNICIAN

JUNIOR BOILER OPERATORS HELPERS

TECHNICIANS

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The main objective of this department is to follow up production schedule as per plan and
to maintain close and co-ordinate relationship with other department and ensures to upgrade
the technical efficiency of production. Cattle feed, as it is highly perishable product has to
process immediately to avoid spoilage of milk efficiency in cow.

Production department is well equipped and has various types of highly sophisticated
machines imported from other countries, once the required raw materials are collected from
farmers those will be tested and cleaned for better quality of cattle feeds.

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2.5.2 PRODUCTION PROCESS AS FOLLWS:

RMG SAMPLE TESTING

DUMPING

STORAGE BINS

BATCHING

GRINDING

MIXING

POWDER BIN

MOLASSES
MIXING

STEAM C

PELLETING

COOLING & SAMPLE PACKING &

STORING TESTING DISPATCHING

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2.5.3 RAW MATERIAL GODON (RMG):

Raw material warehousing is an area which has storage facility for all types of raw materials
which are required for production of cattle feed production.

2.5.4 SAMPLE TEST:

Sample test has been conducted at the first stage after the clearance from quality control
department the materials are taken for production.

2.5.5 DUMPING:

Dumping the Raw materials for purification through the electronic chain conveyer system,
2 Materials can flown for purification through electronic chain conveyer at a time.

2.5.7 BINS:

Bins are the systematic part of the production where the materials are stored and purified
according to dumping of the materials.

2.5.8 BATCHING:

Batching is the process where the raw materials are stored separately in bins according to
the set formula.

2.5.9 GRINDING:

Grinding is a process where the raw materials are taken according to set formula by the
operation of smashing or grinding as a powder through machineries.

2.5.10 MIXING:

After completion of grinding the powdered raw materials will be mixed thoroughly as per
set batch weight in given formula.

2.5.11 STORAGE POWDER PELLET BINS:

The mixed powdered materials is taken to 3 tonnes capacity storage bins for next process.

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2.5.12 POWDER AND MOLASSES MIXING:

After mixing the powdered raw materials will be mixed with molasses in molasses mixer
unit according to set formula. The molasses is the liquid sweet content for better taste of
food for cows.

2.5.13 STEAM:

In pellet mill condition of the mixed powder and molasses materials flown towards the
conditioner same time the steam will be injected.

The injected steam temperature will be around 60-70C so the material will cook.

2.5.14 PELLETING:

After the steam the molasses mixed powder will be flow towards the pellet mill Die, finally
the pellets have been made here and the size of the pellet will be 8-10mm size and the pellet
will come out from mill.

2.5.15 COOLING:

After all the above procedure the pellets will flow towards the pellet cooler unit. The
cooler unit is a machine which exhausts the hot pellet temperature i.e., 50 C will be
reduced to normal room temperature of 30 C-40 C.

2.5.16 SEIVING & SAMPLE TESTING:

After all the process the pellets will be sieved through sieve machine and the remained
powdered materials which are filtered from finished goods will be once again taken for
production process. The final finished goods will be tested in laboratory from Quality
control department and further processed for bagging.

2.5.17 PACKAGING & DISPATCHING:

Bagging or the packaging is a process where the final products will be weighed for 50 kgs
and packed through auto bagging machines and stitched manually, the loaded bags are
stored in warehousing and they are dispatched through Lorries or trucks for final distribution

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for farmers. The materials will dispatch according to allotment of Milk Unions, Co-
Operative societies.

2.5.18 THE ADVANCED MACHINERIES:

PELLET MILL DIE

MOLSSES DOSING TANK

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POWDER AND MOLASSES MIXING

PELLET SIVE
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BOILER

MOLASSES TANKS
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2.6 QUALITY CONTROL DEPARTEMENT:

2.6.1 THE STAFF CHART IS AS FOLLWS:

GENERAL MANAGER

SENIOR CHEMIST (Grade 1.2.3)

LAB ASSISTANTS

HELPERS

In KMFCFPS, at every stage, care is taken to ensure that the customer gets the products,
which have a very high quality. Hence there is a separate department called Quality
Department. Where the quality testing is done, there is a separate laboratory for this. Quality
control is very essential as to maintain the freshness of food. All the containers, pipes and
other equipment in QC are washed with hot water before starting off with new quality check.
There are many tests conducted here. The cattle feed has undergone 5 quality tests.

2.6.2 THE TESTS ARE AS FOLLOWS:

SL NO. TESTS PERCENTAGES

1 Protein Digestion 18%-19%
2 Fat Unit 03%-3.5%
3 Silica 01%-1.5%
4 Moister 10%-11%
5 Fibre 05%-06%

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Lab View-1

Lab View-2
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Lab View-3

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CHAPTER 3
MCKINSKY-7s ANALYSIS
3 MCKINSKY-7s ANALYSIS:

3.1 STRUCTURE:

PRESIDENT

Director Director Director Director Director

(Govt) (Govt) (DCs) (NDDB) (Society)

GENERAL MANAGER

Admin Finance Purchase Stores Production QC

Dept. Dept.
Dept. Dept. Dept. Dept.

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STRUCTURE:
The KMFCFPS is directly controlled by KMF head office which is the corporate body.
The functional structure of KMFCFPS is appropriate for an organization with several
product lines,
The KMFCFPS has the following departmental structure as follows:
Administration department,
Finance department,
Purchase department,
Stores department,
Production department,
Quality Control department,

3.2 SYSTEM:

System refers to all rules and regulations and procedures, both formal and informal.

The KMFCFPS runs systematically as follows:

Government
Public

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Technology
Structure
Goals and Values.
The government helps by giving funds for development of organisation and salaries to
permanent employees and other promotional works.
The public helps by giving raw materials for production and purchasing the finished goods.
The technology helps in huge production at a time it saves human working force in an
organisation.

3.3 STYLES:

A) The KMFCFPS has follows Top to Bottom or Top down style system.
B) The Styles of the organization is said to follow the participative type that is the
management cadre follow the participative type of administration. The fact is that for a
manufacturing firm like the KMFCFPS this type of administration is necessary

The Indicators of the Style are:

Follows Orders, rules and procedure
Is always Reliable, Dependable
Watches Details\Prefers to write out Communications

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3.4 STAFF:
The staffs are nothing but the human resource which is working in an organization. In
KMFCFPS there are different levels of peoples working in different departments they are:
1. ADMINISTRATION:
General Manager
Admin Assistants
Data Entry Operators
Helpers
2. FINANCE:
General Manager
Accounts Officer
Accounts Assistants
Helpers
3. PURCHASE:
General Manager
Purchase Officer
Assistant Purchase Officer
Helpers
4. STORES:
General Manager
Stores Officer
Admin/Lab/Production Assistants
Helpers
5. PURCHASE:
General Manager
Assistant Manager
Technical Officers
Technical Assistants
Maintenance Assistants
Helpers

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3.5 SKILLS:

To import skills, the KMFCFPS conducting training programme which increases the
knowledge and skill of an employees for doing jobs.

Those are:

On the job training.

Off the job training.
Coaching.
Visible training.

DESIGNATION QUALIFICATION
General Manager BVSc
Asst. Managers B com, M com
Technical Support Managers Engineering (B Tech)
Technical Helpers ITI
Helpers SSLC, PUC

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3.6 STARTAGY:
KMFCFPS is formulating appropriate strategies in order to meet the challenges and to
develop and strengthen dairy co-operative movements on the following thrust namely:
Procurement, Processing & Marketing.
Quality assurance programme.
Reasonable pricing.
Pricing decisions are subject to an incredibly complete array of environmental and
competitive forces. KMFCFPS set not to single price, but rather a pricing structure that
covers different item in its line. This pricing structure changes over time as products move
through their life cycle. The organization adjusts product prices to reflect changes in costs
and demand and to account for variation in buyers and situations. As the competitive
environment changes, company considers when to initiated price changes and how to
respond to them.

3.7 SHARED VALUES:

Shared values are what engender trust values are the identity by which a company is known
throughout its business areas. These values must be explicitly stated as both corporate
objectives and individual values. These are the company level benefits, mind-sets and
assumptions that shape how an organization behaves.

The shared value of KMFCFPS is:

Providing quality cattle feeds to rural area consumers.

To build village level institutions in co-operative sectors to manage the dairy
activities.

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CHAPTER 4
SWOT ANALYSIS
(STRENGTH, WEAKNESS, OPPORTUNITY, THREATS)
4. SWOT ANALYSIS

4.1 STRENGTH:

Nandini enjoys good image.

Wide distribution network.
Feeds processed in local Raw materials.
It enjoys highest share in the Cattle feed market in Karnataka.
It has large procurement system.
Huge infrastructure for processing.
Competitive prices for all products.
Wide distribution network leads to regular and timely supply.

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4.2 WEAKNESS:

Recurrent quality problem.

Lowest paying brand (commission less).
Poor retail serving & consumer grievance handling.
Inadequate sales promotional activity.
KMFCFPS does not have human resource department

4.3 OPPORTUNITY:

Scope to develop new area.

Market penetration.
Increasing market demand for milk and milk products.
There is scope for developing in unexplored areas for food processing as Nandini
can extend its equity of brand.

4.4 THREATS:
No entry barriers for private players.
Low level of consumer awareness.
Persuade benefits of competing brand

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CHAPTER-05
Analysis of Financial Statement

5.1 MAIN FINANCIAL INDICATORS FOR 2016:

5.1.1 TABLE-1:

Indicators 2016 2015 2014

Return on Assets (ROA),% 4.30% 4.60% 5.60%
Return on Equity (ROE),% 21.80% 20.40% 30.70%
Operational sustainability, % 117.80% 120.10% 122.60%
Loan portfolio yield, % 41.60% 41.90% 44.00%
Portfolio at risk, % 1.80% 1.90% 1.30%
Leverage 4.3 3.8 3.2
Capital adequacy 18.80% 20.90% 24.20%

5.1.2 TABLE-2:

Income Item 2016-2015 2015-2014

2016 2015 2014
(KZT thous) % %

Financial income: 17,602,278 12,983,804 9,887,396 36% 31%

Interest income
on loans 16,435,349 11,974,383 9,009,758 37% 33%

Loan fees 984,132 839,511 820,661 17% 2%

Other portfolio
income 73,962 68,944 35,257 7% 96%
Income on short-
term investments 108,835 100,965 21,719 8% 365%
Financial
expenses 5,447,495 3,573,015 2,678,831 52% 33%
Financial margin 12,154,783 9,410,789 7,208,565 29% 31%

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5.1.3 TABLE-3:

2016-2015 2015-2014
Structure of operational 2016 2015 2014 % of % of
expenses (KZT thous) changes changes
Personnel expenses 5,083,984 4,195,843 3,488,687 21% 20%
Other administrative
2,168,092 1,841,720 1,515,563 18% 22%
expenses
Outsourced services 522,457 427,867 367,726 22% 16%
Rent of office and
477,630 422,338 366,704 13% 15%
apartment
Depreciation 255,569 192,979 149,192 32% 29%

Security 189,098 176,351 152,263 7% 16%

Office expenses 142,960 102,589 79,484 39% 29%

Communication expenses 134,423 96,785 81,422 39% 19%

Marketing,
81,697 94,409 64,444 -13% 46%
advertisement, PR
Business travel expenses 83,685 74,545 44,044 12% 69%

Transport expenses 75,532 71,944 70,274 5% 2%

Building maintenance
54,094 39,595 24,914 37% 59%
expenses
Other taxes 50,828 38,056 23,709 34% 61%
Charity and sponsorship 9,741 37,005 21,556 -74% 72%
Insurance 34,953 25,613 17,282 36% 48%
Other expenses 55,423 41,643 52,548 33% -21%

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5.2 STATEMENT OF FINANCIAL POSITION

5.2.1 OVERVIEW OF KMF ASSETS:

2016-2015, 2015-2014,
as of as of as of
Assets growth rate growth rate
31.12.2016 31.12.2015 31.12.2014
in % in %
Cash and cash
equivalents 3,300,031 4,392,587 2,354,678 -25% 87%
Financial instru-
ments measured
at fair value 0 2,984,600 493,859 -100% 504%
Net loan
portfolio 51,342,886 34,644,759 28,008,962 48% 24%
Other assets 235,732 278,277 158,758 -15% 75%
Net fixed assets 3,081,666 1,890,453 1,623,525 63% 16%
TOTAL ASSETS 57,960,315 44,190,676 32,639,783 31% 35%

5.2.2 FIXED ASSETS:

2016-2015, 2015-2014,
Fixed assets
2016 2015 2014 % of % of
(KZT thous)
changes changes
Land and buildings 1,952,230 999,034 900,056 95% 11%
Hardware 397,964 294,855 171,549 35% 72%
Office furniture
and equipment 394,461 313,810 249,664 26% 26%
Intangible assets 176,812 104,926 120,061 69% -13%
Vehicles 160,072 176,826 181,950 -9% -3%
Construction in
progress 127 1,003 - -87% 0%
Total 3,081,666 1,890,453 1,623,280 63% 16%

5.2.3 EQUITY:

Indicator Prudential ratio as of 01.01.2017

Paid-in charter capital >= KZT 30 mln. 8,461,187
Calculated equity >= KZT 30 mln. 10,907,810
Equity adequacy ratio k1>= 0.1 0.188
Maximum exposure ratio per one borrower k2 <= 0.25 0.001
Total liabilities maximum limit ratio k3 <= 10 3.723

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01

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CHAPTER 6
FINDINGS, SUGGESTIONS, CONCLUSIONS
6.1 SUMMARY OF FINDINGS:

KMFCFPS is serving rural region by way of procuring raw materials through poor
farmers.

KMFCFPS is equipped with fully automatic system which ensures total quality
maintenance.

It has got its own quality control department with fully equipped laboratory and
equipment that helps detecting any adulteration or any such other defects.

Through the use of advanced technology, KMFCFPS provides its customers

bacteria free and balanced nutritious cattle feeds which is very hygienic.

The advertisement in local newspaper and local television is very low.

Nandini products have a good brand image.

Pricing strategies of Nandini is appreciated by its customers

Nandini is started with customers contact programs in order to get first hand
feedback from its customers about the service by the distributors and its products.

6.2 SUGGESTIONS:

Organization should try to improve the packaging of the product to prevent leakage
of foods.

Organization should try to adopt more and more new technology and methods of
production to survive in this competitive market.

The company should provide some attractive schemes for the regular consumers as
well as retail sellers.

KMFCFPS must adopt professionalism in the overall function of working

departments.

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Advertisements can be given to product especially in print media, which can attract
more consumers.

HR Department has to be initialised for the betterment of employees contribution

to the organisation.

Has to offer performance awards annually to encourage employees.

There is a scope for improvement of quality and brand image as there is a huge
competition in the market.

6.3 CONCLUSION:

It was an exciting experience to me while I undertook my project with KMF Cattle

Feed Production Plant. From this project we learnt about the how the organisation
will work systematically.
KMFCFPS is reputed organization which has developed its good will in the market
to compete with other famous brands such as Godrej and Laxmi etc. It has to adapt
modern technology in the production process and can do better marketing compared
with others.
It has to decrease the rate of the bag for helping poor farmers to buy sufficient food
for cows.
KMFCFPS is functioning well for the social as well as economical up-lifting of the
rural population. To survive in the market the company needs to adapt an aggressive
marketing policy as of competitors.
Last but not least we would like to conclude KMFCFPS as good organization to
work as well as to interact with people. All the workers and members of the plant
nicely motivated me for completion of my project.

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BIBLIOGRAPHY

REPORTS:
Annual reports of KMF Cattle Feed Production Plant. Sanda Industrial Area, Shikaripura.

Ref. To 2013-13 and 2013-14 from Finance, Admin and Production department.

WEBSITES:
Site Visited for product of company
http://www.nandini.co-op.com
Site visited regarding service provided by the company
http://www.kmf.com
Site visited regarding the information about the company
http://www.shimul.coop

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