NANDINI

MILK
COMPANY
 INTRODUCTION

The Karnataka Co-operative Milk Producers' Federation Limited, in short,

Karnataka Milk Federation (KMF), is the State level third tier in the three-tier
structure of co-operative dairying emulated in the State of Karnataka. With its
establishment in 1983, the KMF has taken over the functions of the erstwhile
Karnataka Dairy Development Corporation (KDDC), the Karnataka Milk Products
Limited (KMPL) and the Animal Husbandry Department of the State. Now, the
KMF is the coordinating and implementing authority for all the dairy development
programs in the State. The organized development of the dairy industry in the
State, now, rests in the hands of the KMF, as it is considered as the nodal agency in
the channelization of financial and other resources for various dairy developments
Activities. The KMF can be rightly considered as the leader responsible for
organized dairy development in the State. The KMF aims at achieving an
organized dairy development in the State by building up Dairy Co-operative
Societies (DCSs) at village level for the purpose of procurement of milk and
provision of input services to milk producers and District Level Unions (DUs) of
these village level societies for the purpose of procurement, processing,
conversion, production and marketing of milk and milk-products using a wide
network of chilling centers, processing units, dairy product plants, etc. It is the task
of the KMF to ensure that dairy co-operative societies and district level unions
remain operationally and financially viable units to ensure soundness of the three-
tier co-operative dairying structure.
To achieve this endeavor, the KMF acts as the friend, philosopher and guide to
dairy co-operative societies and the unions. The KMF provides its expertise to
these institutions in their establishment, building basic infrastructure, training of
their personnel, provision of technical inputs, etc. The Federation, at the State
level, as per the principles of co-operative dairying, has major task of marketing
milk and milk-products under its own brand name or under the brand names of its
member unions. In Karnataka, however, the KMF in its pursuit of organized dairy
development is engaged in the major tasks of procurement, processing, production
and marketing of milk and milk-products. In addition, the KMF concentrates
on market research, product diversification, marketing of milk in neighboring
States, export of dairy products, seasonal balancing of milk and milk-products and
quality control. The centralization of these tasks with the sole institution, namely
the KMF, has made its role to be critical in the organized dairy development in the
State .Besides the dairy development, the KMF is expected to play a critical role in
the rural transformation. Dairying is one economic occupation which is encouraged
by planners and administrators in India to improve the lot of the rural poor. The
Food and Agricultural Organization Evaluation Committee (1976) observes that
"Dairy Development in India offers a unique advantage over industrialization
Or agricultural development. This premise is based on the spread-effect of dairy
development which is more evenly distributed as compared to other two
alternatives". Most of the households of rural areas own one or two cattle
or buffaloes irrespective of their landholdings. "More than 70 per cent of rural
households possess a mere 21.8per cent of land holdings. They, however, own as
much as64.8 per cent of total milk animals. It may be interesting to note that
landless laborers account for 21 per cent of all households. As such/ they do not
have any share in the total land holdings. They do, however, own 12 per cent of the
Milk animals and produce 16 per cent of all rurally produced milk. This indicates
that the distribution of milk animals is more even and much less skewed than the
Distribution of land holdings". As such dairying is being envisaged as an important
means of reinforcing the income of economically weaker sections of the society
Constituted by landless laborers and small farmers. However, for a long period of
time, due torn organized nature of dairy industry, the improvement in the living
conditions of rural masses has remained as an unfulfilled dream. Unscientific
breeding policy, non-availability of facilities for natural feeding, absence of
effective organizational arrangements for supply of inputs to farmers, lack of
proper marketing facilities, existence of a large number of intermediaries, etc.,
have made dairying to be unprofitable and remunerative. The KMF is charged with
the social responsibility of improving the living conditions of millions of rural
masses in Karnataka. In other words, it has to achieve 'Rural Development' through
organized dairy development. Hence, it has been described as the 'Harbinger of
Rural Prosperity’. The KMF achieves this objective of rural development by
providing assured and remunerative market for the m ilk produced by the rural
masses, pr oviding opportunities for self- improvement at village level, preventing
migrate into urban areas, introducing cash economy and opportunity for steady
income to the rural masses’ further, the KMF is expected to play a pivotal role in
the health and prosperity of urban people by supplying hygienic milk and milk-
products at the right time, at the right place, in the right quantity and at the fair
price. Itis expected to prevent exploitation of urban dwellers by the middlemen by
supplying high priced and adulterated milk & milk-products causing thereby health
hazards to them. Thus, the role of the KMF in the lives of urban dwellers is of a
protector, preserver and sustainer one. Thus, the overall role of the KMF in the
organize dairy development of the State can be compared to the role of a 'Nandini
1 — the name of the cow, which had divine powers of providing delicious food
items to all, who prayed before her, all the time - as said in Indian mythology. The
word Nandini is the family brand name adopted by the KMF in marketing its milk
and milk-products in the State.
 VISION, MISSION & GOALS

Vision

 To march forward with a missionary zeal which will make KMF a trailblazer
of exemplary performance and achievements beckoning other Milk
Federations in the country in pursuit of total emulation of its good deeds.

 To ensure prosperity of the rural Milk producers who are ultimate owners of
the Federation.

 To promote producer oriented viable cooperative society to impart an

impetus to the rural income, dairy productivity and rural employment.

 To bridge the gap between price of milk procurement and sale price.

 To develop business acumen in marketing and trading disciplines so as to

serve consumers with quality milk, give a fillip to the income of milk
producers.

 To compete with MNCs and Private Dairies with better quality of milk and
milk products and in the process sustain invincibility of cooperatives.
Mission

 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.

Objectives

KMF is a Cooperative Apex Body in the State of Karnataka representing

organizations of milk producers' and implementing all round dairy development
activities to achieve the following objectives:
  To ensure assured and remunerative market round the year for the milk
produced by the farmer members.
 To make available quality milk and other premier dairy products to urban
consumers.

 To build & develop village level institutions as cooperative model units to

manage the dairy activities.

 To ensure provision of inputs for milk production, 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,
introducing cash economy and opportunity for a sustained income.

The philosophy of dairy development is to eliminate middlemen and organize

institutions to be owned and managed by the milk producers themselves,
employing professionals. To sum it up, every activity of KMF revolves around
meeting one basic objective: 'Achieve economies of scale to ensure maximum
returns to the milk producers, at the same time facilitate wholesome milk at
reasonable price to urban consumers'. Ultimately, the complex network of
cooperative organization should build a bridge between masses of rural producers
and millions of urban consumers and in the process achieve a socio-economic
revolution in every hinterland of the State.
 HISTORY

Karnataka Cooperative Milk Producer’s Federation Limited (KMF) is the apex

body for the dairy co-operative movement in Karnataka. It is the second largest
dairy co-operative amongst the dairy cooperatives in the country. In south India it
stands first in terms of procurement as well as sales. One of the core functions of
the Federation is marketing of milk and milk products. The brand “Nandini” is the
household name for pure and fresh milk and milk products. KMF has 14 milk
unions covering all the districts of the state which procure milk from Primary
Dairy Cooperative Societies (DCS) and distribute milk to the consumer in various
towns/cities/rural markets in Karnataka.

Karnataka Dairy Development Cooperation (KDDC), the first ever World Bank/
International Development Agency funded dairy development program in the
country started in Karnataka on co-operative lines with the organization of Village
Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives
started functioning in Karnataka from 1974-75 with the financial assistance from
World Bank/IDA, Operation Flood II &III. The Anand pattern three tire
organization structure- Dairy Cooperative Societies at the village level, District
milk unions at the district levels to take care of the procurement, processing and
marketing of milk and provide technical input services for enhancing milk
production at producers level and Federation at the state level to co-ordinate the
growth of the sector in the state, are resolutely and harmoniously working hand-in
–hand in creating self-sustaining rural economy based on cooperative dairying.
KMF is one of the few federations in the country, who have converted dairying
from a subsidiary occupation into an industry.

Coordination of activity among the unions and developing markets for milk and
milk products is the responsibility of KMF. Marketing milk in the respective
jurisdictions organized by the respective milk unions. Surplus/deficit of liquid milk
among the member milk unions is monitored by the federation. While the
marketing of all the milk products is organized by KMF, both within and outside
the state, all the milk and milk products are sold under a common brand name
NANDINI.
The federation is striving to create a self-reliant and vibrant rural economy in
Karnataka by providing a supportive and conductive environment for the growth of
Dairy Cooperatives as autonomous economic and social institutions. The
federation is largely successful in realizing the objectives of dairying during the
last four decades of dairy development in Karnataka state. It is by-and-large
successful in providing a viable subsidiary occupation to unemployed rural poor so
as to raise their income earning capacities and to supply adequate quantity of
quality milk at reasonable prices to urban consumers.

The results of effective dairy development by KMF have made far-reaching and
extensive impact on rural landscape in Karnataka. The best remunerative milk
purchase price to farmers, sufficient and timely input services, delivered at the
door steps to farmers, such as, unfailing veterinary health services to any remote
village, quality artificial insemination for breed improvements, supply of balance
cattle feed at less than the market price, etc. have made the farmers to increasingly
patronize their cooperative. The extent of patronization by farmers is so complete,
that dominant share of marketable surplus milk of farmers in Karnataka is procured
by KMF dairies and hardly there is any organized private dairy milk procurement,
which is widely prevalent in other parts of the country.
 PRODUCTS OF COMPANY

Following are the products of the company:

1. Milk:
 Nandini Pasteurized Toned Milk
 Nandini Double Toned Milk
 Nandini Homogenized Cow's Pure Milk
 Nandini Shubham Pasteurized Standardized Milk
 Nandini Samrudhi Pasteurized Full Cream Milk
 Nandini Special Toned Milk
 Nandini Shubham Gold Milk
 Nandini Homogenized Toned Milk
 Nandini Pasteurized Full Cream Milk
 Nandini Pasteurized Standardized Milk

2. Curds & other fermented products:

 Nandini Mango Lassi
 Nandini Real Thick Curd
 Nandini Curd
 Nandini Butter Milk
 Nandini Sweet Lassi
 Nandini Yoghurt
 Nandini Shrikhand Elaichi Flavored
 Nandini Shrikhand Mango Flavored

3. Milk powder:
 Nandini Dairy Whitener
 Nandini Skimmed Milk Powder
 Nandini Badam Milk Mix

4. Ghee & butter:

 Nandini Butter Salted
 Nandini Butter Unsalted
  Nandini Pasteurized Butter Salted-Blister Pack
 Nandini Ghee Bag in Box
 Nandini Ghee in Pet Jar
 Nandini Ghee in Sachets

5. Ice-cream & frozen desert:

 Family Pack Fresh Milk Ice Cream - Butter Scotch
 Family Pack Fresh Milk Ice Cream – Blackcurrent
 Family Pack Fresh Milk Ice Cream – Chocolate
 Family Pack Fresh Milk Ice Cream – Kaju Draksh
 Family Pack Fresh Milk Ice Cream – Mango
 Family Pack Fresh Milk Ice Cream – Kesar Pista
 Family Pack Fresh Milk Ice Cream – Pineapple
 Family Pack Fresh Milk Ice Cream – Anjir
 Family Pack Fresh Milk Ice Cream – Vanilla
 Family Pack Fresh Milk Ice Cream - Tutti Frutti
 Family Pack Fresh Milk Ice Cream-Choco Chips
 Ice Cream Cup – Vanilla
 Ice Cream Cup – Strawberry
 Ice Cream Cup – Pineapple
 Ice Cream Cup - Butter Scotch
 Magic Dessert Cup – Vanilla
 Ball Ice Cream Vanilla, Strawberry, Chocolate
 Ice Candy
 Chocobar
 Pista Kulfi
 Crazy Cone Ice Cream Butter Scotch Chocolate
 Sugar free Probiotic frozen food
 Sundae

6. Milk sweets:
 Nandini Premium Badam Burfi
 Nandini Premium Cashew Burfi
  Nandini Chocolate Burfi
 Nandini Mysore Pak
 Nandini Besan Ladoo
 Nandini Dry Fruit Burfi
 Nandini Kunda
 Nandini Dharwad Peda
 Nandini Milk Peda
 Nandini Ready to eat Jamoon
 Nandini Ready to eat Rossogolla
 Nandini Bite
 Nandini Sweet n Salt and Coconut Cookies
 Nandini Pure Milk Khova
 Nandini Vermicelli Payasa Instant Mix
 Nandini Gulab Jamoon Mix
 Nandini Elachi Peda
 Nandini Kesar peda
 Nandini Assorted Sweet gift box
 Nandini Coconut Burfi

7. Other products:
 Nandini Cheese
 Nandini Paneer
 Nandini Flavored Milk
 Nandini Diced Paneer

8. Chocolates :
 Nandini Chocolates

9. UHT milk:
 Nandini Goodlife
 Nandini Slim
 Nandini Goodlife UHT Long Life Milk
 Nandini Smart Fortified with Vitamins A+D
  Nandini Sampoorna
 Nandini Milk Shakes Premium
 Nandini U.H.T. Sterilized Flavored Milk in tetra brick –Pista,
Strawberry and Badam
 Nandini Lassi in Tetra Brick- Plain and Mango Lassi
 Nandini Spiced Buttermilk in tetra pack

10.Flexi pack milk:

 Nandini Trupti milk
 Nandini Healthly Life Milk
 METHODOLOGY

A SWOT analysis of Nandini dairy industry would highlight the strengths,

weaknesses, opportunities and threats of the dairy industry, these paving the way
for better management of dairy units by taking advantage of opportunities and by
initiating certain measures to mitigate weaknesses.

Strengths:
 Demand for milk and milk products are showing a raising trend.
 Margins are quite reasonable, even on packed liquid milk.
 Flexibility of product mix with balancing equipment can facilitate a wide
product line.
 Availability of raw material is abundant. Presently, more than 80 per cent of
milk
 Produced is flowing into the unorganized sector, which requires proper
Channelization.
 Technical manpower, professionally-trained, technical human resource pool,
built over last 30 years.
Weaknesses:
 Perishability: Pasteurization has overcome this weakness partially. UHT
gives milk long life. Surely, many new processes will follow to improve
milk quality and extend its shelf life.
 Lack of control over yield: Theoretically, there is little control over milk
yield.
 However, increased awareness of developments like embryo transplant,
artificial Insemination and properly managed animal husbandry practices,
coupled with 10 higher incomes to rural milk producers should
automatically lead to improvement in milk yields.
 Logistics of procurement: Woes of bad roads and inadequate
transportation facility make milk procurement problematic. But with the
overall economic improvement in India, these problems would also get
solved.
 Problematic distribution, absence of cold chains linking the producers
and distributors is a major problem
 Competition, with so many newcomers entering this industry,
competition is becoming tougher day by day
Opportunities:

 Value addition: There is a phenomenal scope for innovations in product

development, packaging and presentation. As there is a wider acceptance of
value added products by the consumers. Given below are potential areas of
value addition
 Steps should be taken to introduce value-added products like Shrikhand, ice
Creams, paneer, Khova, flavored milk, dairy sweets, etc.
 This will lead to a greater presence and flexibility in the market place along
with opportunities in the field of brand building.
 Addition of cultured products like yoghurt and cheese lend further strength -
both in terms of utilization of resources and presence in the market place.
 A lateral view opens up opportunities in milk proteins through casein,
caseinates and other dietary proteins, further opening up export
opportunities.
 Export potential: Efforts to exploit export potential are already on. Amul is
Exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East.
Following the new GATT treaty, opportunities will increase tremendously
for the export of agro products in general and dairy products in particular
Threats:
 Presence of number of unorganized players poses threat to the organized
sector as well as for systematic procurement and marketing of milk and milk
products.
 PRODUCTION LINE

Nandini Hi Tech Product Plant

Back ground:
The milk procurement by the co-operatives in Karnataka has steadily increased
over the years due to the efforts and policies favoring milk production. The
infrastructure of the milk co-operatives in the state was found to be insufficient for
handling the excess milk.
In order to meet the increased processing requirement, Karnataka Milk Federation
(KMF), in consultation with National Dairy Development (NDDB), conceived to
setup a product dairy of 400 TLPD with 30 MTPD powder plant in the year 2005
at Channarayapatna, Hassan Dist. (Karnataka), a strategic location to handle the
surplus milk of Hassan, Mandya, Mysuru and Tumakuru milk unions.
The project was executed by NDDB on turnkey basis at an estimated cost of
Rs.69.43 crores.
Infrastructure:

 Effluent treatment plant using environmental friendly anaerobic technology.

 State of the art automation technology (DCS / Scada) for milk processing and
powder manufacturing and energy efficient equipment and machineries adhering
to HACCP standards along with advanced dairy transaction processing system
(ERP).
 Fully automated refrigeration plant using environment friendly ammonia liquid
over feed system with ICE silo.

Storage Capacity:

Particulars Earlier capacity Expansion Present capacity

Milk storage 6 LL 2 LL 8 LL

Milk powder 1400 MT 1400 MT 2800 MT

Cream storage 60000 Litre 40000 Litre 1 Lakh Litre

 Butter storage 525 MT 525 MT 1050 MT

Ghee storage 25 MT ---- 25 MT

Processing Capacity:

Particulars Earlier Capacity Expansion Present capacity

Milk Processing 4 LL 3 LL 7 LL

Milk powder production 30 MT 30 MT 60 MT

Butter production 21 MT 21 MT 42 MT

Ghee production 5 MT ---- 5 MT

New UHT Plant to address ever growing Market demand of Nandini UHT Milk
was commissioned on 09.04.2011

 Installation of Nandini UHT Milk Processing and packing facility of 1, 00,000

Ltrs/ Day Capacity.
 Includes facility for packing Nandini UHT milk in 100ml, 200ml and
500ml Finopacks, 160ml,200ml,500ml and 1liter Tetra brick pack. 100 ml Fino
packs.(started from Jan’12)
 Includes facility for packing Nandini Flavored Milk in 200 ML Packs.

The plant is expanded from 30 MTPD to 60 MTPD with processing facilities

expanded from 4 LLPD to 7LLPD at project cost of Rs. 104 crores.

Complete UHT Milk Processing Line

With a product that can be stored for long periods without spoiling and with no
need for refrigeration, there are many advantages for the producer, the retailer and
the consumer. This includes expensive products such as milk, cream, desserts and
sauces.
In a modern UHT milk production line (Ultra High Temperature) is pumped
through a closed system. On the way it is preheated, highly heat treated,
homogenized, ultra-highly heat treated, cooled and packed aseptically. Low acid
(pH above 4.5 – for milk more than pH 6.5) liquid products are usually treated at
135 – 150C for a few seconds holding, by either indirect heating or direct steam
injection or infusion. High acid (pH below 4.5) products such as juice are normally
heated at 90 – 95C for 15 – 30 seconds holding. All parts of the system
downstream of the actual highly heating section are of aseptic design to eliminate
the risk of reinfection, include aseptic packaging in packages protecting the
product against light and atmospheric oxygen. Ambient storage is normal.

Various UHT milk processing systems:

There are two main types of UHT systems on the market.
- In the direct systems the product comes in direct contact with the heating
medium, followed by flash cooling in a vacuum vessel and eventually further
indirect cooling to packaging temperature. The direct systems are divided into:
•steam injection systems (steam injected into product),
•steam infusion systems (product introduced into a steam-filled vessel).
- In the indirect systems the heat is transferred from the heating media to the
product through a partition (plate or tubular wall). The indirect systems can be
based on:
•plate heat exchangers,
•tubular heat exchangers,
•scraped surface heat exchangers,
Furthermore it is possible to combine the heat exchangers in the direct systems
according to product and process requirements
 TURNOVER OF COMPANY

members and three officials.

Focus on north of State

“The federation would focus on north Karnataka region where just around 5 to 6
lakh litres are procured daily, and this would help the KMF reach its target,” Mr.
Reddy told presspersons soon after the KMF board meeting where he was declared
elected unanimously. He said that efforts would be made to bridge the huge gap in
milk procurement between northern and southern regions of Karnataka. “We are
the only federation in the country with an annual growth rate of 10 per cent while
the others are reporting a growth rate of 4 to 5 per cent,” he said.Mr. Somashekar
Reddy, who had been criticized often for not devoting enough time on the KMF
affairs, acknowledged that he had concentrated more on his constituency during
the previous term as KMF Chairman. He, however, promised that he would devote
three days in a week for the KMF work. Meanwhile, the former KMF Chairman
and JD (S) leader H.D. Revanna was conspicuously absent in the board meeting.
Of the 13 elected members of the board, who represent 13 district milk unions
across Karnataka, 10 belong to the BJP while three, including Mr. Revanna, are
from the JD (Secular). The board also has three nominatedin procurement of milk
at the district level, Karnataka Cooperative Milk Producer’s Federation (KMF), the
country’s second largest dairy co-operative after Gujarat Cooperative Milk
Marketing Federation (GCMMF), is expected to achieve only a moderate growth
in daily procurement of milk in the current year. KMF, comprising 14 district-level
milk unions, is expected to procure an average 66.24 lakh kg of milk daily from
around 8.5 lakh dairy farmers during 2016-17, compared to 64.88 lakh kgs
purchased from farmers in the previous year.

Hit by successive years of drought and regional disparity The Karnataka

Cooperative Milk Producers' Federation (KMF) has set itself a target of achieving
an annual turnover of Rs. 10,000 crore by procuring 80 lakh litres of milk every
day over the next couple of years, said G. Somashekar Reddy, who was re-elected
here as the federation Chairman on Tuesday. The KMF reported a turnover of Rs.
5,552 crore and a profit of Rs. 38.64 crore in the last fiscal with daily milk
procurement of about 46 lakh litres

However, because of rising demand for milk products, KMF is expected to achieve
turnover of R13, 000 crore which is an increase of 10% more than turnover of
R11,779 crore achieved in 2015-16. “The weather had been extremely dry during
the year and there had been shortage of green and other fodder which had an
adverse impact on milk procurement,” Rakesh Singh, managing director, KMF told
FE. Karnataka had been facing drought like conditions in the last couple of years
because of deficient monsoon rains. Due to monsoon failure, the state government
had declared 139 taluks out of 176 taluks as ‘drought hit’.

Out of 14 district unions of KMF, five district milk unions – Mysore, Bangalore,
Hassan, Kolar and Mandya—contribute 80% of milk procured daily from the
farmers. Singh of KMF said that rest of the nine districts milk unions have not
been able to expand procurement because of issues concerning management which
essentially impact overall performance of the state federation, which sells milk and
milk products under ‘Nandini’ brand.
The official from KMF acknowledges that a large number of district dairies are
inefficiently run leading to rising overhead costs. “Because of petty politics, most
of districts dairies could not develop a macro approach around the brand —
Nandini — and there had been procurement from Maharashtra dairies especially in
those districts bordering the state,” Singh said. “Otherwise we would have easily
reached the level of GCMMF,” he said. GCMMF is aiming at sales turnover of
R30,000 crore by 2017-18, from R23,000 crore reported in FY16.
 ACHIEVEMENTS

 State entirely covered by Cooperative Dairy Development.

 Elected boards are in position in all the District Milk Unions and Federation.
 Lowest price spread between procurement price and sale price. Due to
efficiency of operations in the Federation and Unions, more than 75% of the
consumer rupee is passed on to producers.
 More than 97% of the Dairy Cooperative Societies (DCS) are earning profit.
 Extensive coverage of cross-breeding programs has catapulted the state to
become one of the few pioneering states in cross-breeding in the country.
Empowering Producers for Rural Prosperity:
 Overwhelming majority of the beneficiaries of Cooperative Dairy
Development programs in the State belong to vulnerable section in villages:
Total membership of 24.36 lakh covers around 4.34 lakh (20%) landless
laborers, 9.01 lakhs(40%) small farmers, 7.11 lakhs(32%) marginal farmers
and 3.90 lakhs(18%) others. Of the total membership, 8.66 Lakh (39%) are
women members and 3.94 Lakh (18%) belong to SC/ST groups.
 The State Government has magnanimously increased the incentive, being
paid for every litre of milk supplied by farmers to Dairy Cooperatives in the
state, from Rs. 4 to Rs. 5. This ground breaking support program,
implemented nowhere else in the country, is acting as a remarkable growth
stimulus for the cooperative dairy sector in the state.
 Farmers have earned over Rs.134.25(Nov'17) crores over the last 40 years.
 At present, an average daily payment of around Rs. 19 Crores is paid to milk
producers.
 Implementation of ‘Yashaswini Health Insurance Scheme’, to benefit farmer
families of Dairy Cooperatives.
 Majority of our member milk producers are small farmers, marginal farmers
and landless laborers, who need hand-holding in their critical times of
distress. KMF is implementing several financial assistance programs of
GOK, some of which are: Establishment of 1000 Dairy Cooperative
Societies in North Karnataka; Implementation of Nanjundappa report for
overcoming regional imbalances; Equity contribution for loan repayment of
Northern Milk Unions; Amrutha Yojane for Devadashis and widows Rs. 750
lakhs, SC women (Special Component program) Rs. 289 lakhs, and ST
women (Tribal Sub plan) Rs. 289 lakhs
 Karnataka Milk Federation is also successfully implementing Central
Government Schemes, such as Clean Milk Production Program, RKVY and
 National Programme for Dairy Development(NPDD) in Kalaburgi, Yadagir
and Bidar Districts
 Rs. 10 Crores sanctioned in RKVY 2015-16 for the development of Bidar
district as Milk Shed Area. Under this scheme programs such as animal
induction, strengthening of artificial insemination, strengthening of
marketing activities are under implementation
 ‘Nandini Dairy Farmers Welfare Trust’ Hostel has been established in the
Bengaluru city for the benefit of farmers’ children at the cost of Rs. 12.96
crores and is now serving around 252 girls and 246 , who are pursuing
higher education in the City.
 Strengthening training facilities - The KMF is making great efforts to ensure
that DCS operate as profitable business units and producer members play
active role in the management of their DCS. Determined efforts are being
made continually to build the capacities of our member producers by making
large investments in member education and training. KMF is developing its
training facilities into state-of-the-art facilities and has conducted many
need-based training programs to farmers. Conducted many programs on
Dairy animal management, First-aid, Aritificial insemination, clean milk
production, and other HRD programs.
Input Support to Producers:
 Cattle Feed Production and Sales - Supply of balanced cattle feed in
sufficient quantity at reasonable price is very essential for boosting milk
production in the State. During 2015-16, KMF has supplied 5,07,851 MTs
of Cattle feed, which is 16% higher than the 4,37,008 MTs sold during
2014-15.
 The four Cattle Feed Plants of the Federation have excelled in productivity
by capacity utilization of more than 120%, so as to meet the ever increasing
demand for NANDINI cattle feed from producers. All the Cattle feed plants
are ISO 9001:2008 certified for producing quality cattle feed.
 In order to meet the increasing demand for NANDINI cattle feed, new 300
MTD (MTs per Day) each Cattle Feed Unit have been commissioned at
Hassan and Shikaripur.
 The capacity of Dharwar Cattle Feed plant has been expanded from 150
MTD to 200 MTD.
 KMF is the first Federation in the country to introduce Area-specific Mineral
Mixtures, under the technical guidance of NIANP. Now, this concept has
become very popular across the country.
 Established Mineral Mixture Plants in Gubbi, Dharwar and Hassan Cattle
Feed Plants.
 Fodder Densification Units - In the present days of increasing manufacturing
cost of cattle feeds, the profitability of dairying to farmers is getting
constantly eroded. Hence, effective utilization of locally available roughages
is a promising solution to increase farmers' profitability in milk production.
KMF has initiated ambitious program to commission Fodder Densification
Units in the state. In these units, locally available poor quality roughages are
converted into nutritive fodder blocks for feeding to cattle. The production
of these blocks result in preventing wastage of roughages, increased nutritive
value, year-long availability of fodder and reduced transportation costs due
to reduction in bulk. Fodder Densification Units are present at
Chamarajanagar, Haveri and DK unit at Hassan each with a capacity of 12
MTD
 Constructed 2500 MT and 5000 MT capacity Cattle Feed raw materials
storage godowns in Gubbi and Dharwar Cattle Feed Plants respectively.
 To increase the milk productivity in cattle, other steps that have been taken
are: Increasing the AI coverage and reach; Biosecurity measures to ensure
quality genetic materials; establishing disease free zones for the elimination
of diseases such as Foot & Mouth, Brucellosis, etc.
 The overwhelming success of AI programs in the State is due to superior
quality Semen Straws, being produced in the Nandini Sperm Station of the
Federation. This Station has been recognized by the Ministry of Agriculture,
GOI, as the 2nd Best A Grade Station in the Country and this station is also
certified for ISO 9001:2008.
 Nandini Gold Cattle Feed was introduced, a nutritious high energy feed for
cattle where the maize content is 45%
Processing Excellence for Quality and Cost Competitiveness:
 Bengaluru Milk Union, Mother Dairy, DK Milk Union and Tumakuru Milk
Unions have been certified for ISO 22000 (Food Safety Management
Systems). Kolar and Mysuru Milk Unions have been certified for ISO 9001
(Quality Management Systems). Other Unions are in the process of
implementing ISO 22000.
 Mother Dairy has been certified for exports by EIA.
 Cost competitiveness is critical to ensure that our producer members receive
the highest possible share of the consumer rupee. In order to achieve cost
competitiveness, Total Energy Management Programs are being
implemented by the Unions of KMF during the last several years. Unions &
units of KMF have won many national and state awards for the Energy
Efficiency in dairy sector.
 The Unions and Units of KMF have also won many Productivity Awards
from GOI.
 Implemented “Quality Excellence from Cow to Consumers”, under which
many best practices in quality have been implemented at all stages of
procurement, processing and marketing. The Unions of the Federation have
1020 BMCs, 5711 AMCUs and 92 Community Milking Parlors.
 The Federation is creating necessary milk processing facilities to enhance
the existing processing capacities, new processing plants and other
infrastructure from time to time in the state
 Fully-automated State-of-the-art technology Mega dairy, has been
commissioned with installed capacity of 6 LLPD which is now expanded to
10 LLPD
 The milk processing capacity of Mother Dairy in Bengaluru has been
expanded from 4 LLPD to 7 LLPD, with an outlay of Rs. 35 crores. Milk
powder plant, with a capacity of 30 MTD, has been established in Mother
Dairy, with an outlay of Rs. 22 crores.
 Fully automated Channarayapatna Hi-Tec Product plant has been established
with 60 MT capacity powder plant and 1 LLPD capacity UHT plant.
 The existing Ice-cream plant in Bengaluru is expanded to 10000 LPD in
addition to 10000 LPD at Ballari Ice Cream Plant
 A new Flexi pack unit at DK is established and it has started production
Profitable Disposal of Farmers’ Produce – Milk :
 KMF is making all out efforts in market development and is successful in
garnering a significant market share of over 65% in liquid milk, which is
considered to be highest by a cooperative brand in any city. KMF is
marketing over 34.66 LLPD of milk at present.
 KMF is also the market leader is selling curds (dahi) to the tune of
6.00LKPD (Lakh kgs per day), which is highest by any organization in the
country.
 The demand for value added dairy products is likely to increase with fast
changing lifestyles of the people and rapid urbanization. Nandini has
introduced an extensive range of milk products in the market and several
new milk products, such as Yoghurt in various flavors, Cheddar Cheese and
Process cheese, Chocolates, Kunda in long life flexible retort pack, UHT
Cream, Sugar free sweets, etc. have been introduced. Now, NANDINI has
wide range of milk and milk products catering to the diverse needs of
consumers – 66 milk and milk products in 246 SKUs (Stock Keeping Units).
 Leader in the country in the sale of Tetra-fino UHT milk.
 In order to improve marketing of milk and milk products, for profitable
disposal of milk, many proactive market initiatives have been taken, viz
New sales Depot at strategic locations in & outside the state, all NMP
products in new packs, introduction of new value added products, direct
export of milk products etc.
 Dividend of Rs. 1.68 Crores and bonus of Rs.1.38 Crores for the period
2014-15 have been distributed by KMF, out of its profit, to its Member
Unions.
 About 17,680 MTs of NANDINI ghee has been supplied during 2001 to
2015(up to Aug'15) to Tirumala Tirupati Devastanams.
 KMF has exported SMP, Butter and Indigenous Sweets to countries, such as,
USA, Singapore, Thailand, Phillipines, Nepal, Bangladesh, Oman,
Madagaskar, Burma, etc.
 NANDINI SMP is being distributed to Anganwadis in the state under
Nutrition Programs of the State Government and School Milk Program is
also under active consideration of the State Government.
 KsheeraBhagya, an innovative and prestigious program of distributing milk
to school and Anganwadi children was launched by the Karnataka
Government through KMF where more than 1 crore children are
nutritionally benefitted
 Goodlife milk supply to Indian Army including highest altitude border
security points
 NANDINI has received the prestigious “Most Trusted Brand” award.
 PRODUCTS SUPPLIED

KMF covers 22,000 villages, 13,000 milk co-operative societies, 14 district milk
unions and 22 lakh milk producer members.

Mumbai: The Karnataka Co-operative Milk Producers Federation Ltd (KMF) on

Wednesday commenced operations in Maharashtra, where it is targeting to supply
25 lakh litres milk each day.
“We are expanding our network of milk supply. KMF is currently supplying over
80 lakh litres of milk to Karnataka and Chennai per day and is now targeting to
supply 25 lakh litres in Maharashtra. The largest co-operative dairy federation in
south India has been playing a vital role in boosting the rural economy since its
inception in 1975, he said.
KMF covers 22,000 villages, 13,000 milk co-operative societies, 14 district milk
unions and 22 lakh milk producer members.
It procures 65 lakh litres of milk each day and pays Rs 15 crore to farmers,
Nagaraju said. The company launched its milk brand — ‘Nandini’ - in Mumbai on
Wednesday.
It sells products like milk, long-life milk (flexi) and pasteurized curd under the
Nandini brand. Over the last 40 years, KMF has turned Karnataka from a milk-
deficit state into a milk-surplus state. KMF is striving to excel on three critical
fronts namely, quality, competitive price and service, he said.
Tamil nadu:
The Nandini milk producing company supplies milk in Tamil Nadu. It is one
among the top milk producers and suppliers and is ranked number nine in the list
of top thirteen milk producing states in the country. It produces 7 Million Tons of
milk each year. However, the last year has witnessed a growth of 10% in milk
production in the state. It has a share of 5.31% in the total milk production of the
nation.
Bihar:
The Nandini milk producing company supplies milk in Bihar. It registers itself in
the tenth rank in the list. It produces 6.845 Million Tons of milk each year. It has
the fourth cattle and buffalo population in India. In Bihar, the main milk producing
districts are Bijnore, Meerut, Agra, Muzaffarnagar, Mathura, and Aligarh. The
various milk products are sold by Bihar under the name of “Sudha Dairy”. It has a
total of 10 Lakh Litres a day, milk handling capacity.
Karnataka:
Karnataka It is in the eleventh position in the list of top milk producing states in
India. The Karnataka Milk Federation (KMF) produces an average of 50 lakh kg of
milk each day. They sell their dairy products such as milk, paneer, peda, and curd
under the name ‘Nandini’. Nandini is the second largest milk cooperative after
AMUL. The state has 43 milk chilling and 23 milk processing plants.

Gujarat:

The Nandini milk producing company supplies milk in Gujarat, the land of legends
is the fourth largest milk producing state in India. It produces 10.315 million tons
of milk every year. The largest dairy brand of the country, ‘Amul’ is based in
Gujarat. It was established in the year 1946. The company not only produces and
supplies dairy products but it also gives employment to more than three million
workers under itself. It has a share of 7.99% in the country’s total milk production.
Its major milk producing districts include Mehsana, Banaskantha, Sabarkantha,
Junagarh, Kheda, Anand, Panchmahal, and Rajkot.
 MARKETING STRATEGY

Karnataka has always remained in the forefront of all agricultural development

initiatives in India and dairy development is no exception. Dairy farming in
Karnataka, like in elsewhere in the country, is largely characterized by the
prevalence of dairy enterprises that are mostly subsidiary occupations alongside
the main agricultural activity of the farmer. Specialized dairy enterprises do exist
but not only is their number abysmally low as compared to regular types, but also
are restricted mostly to urban areas and their surroundings. Karnataka stands
second in milk production in the country. The milk production was around 33.00
Lakh litres during the year 2005-06.Though the State exports milk to neighboring
States of Goa, Kerala, Tamil Nadu and Andhra Pradesh, it does face shortage at
times. Due to the drought conditions, milk production has been, however,
decreasing in the last two to three years. Karnataka Milk Federation (KMF) has
come a long way covering 13 milk unions and 15 dairy plants with a total milk
processing capacity of 35.00 Lakh liters per day. Its milk and milk products like
peda, jamoon, ghee, lassi, panner, Mysore pak, and milk powdered. Under brand
name “Nandini” have taken over 60 to 65 per cent of the milk market. The
Federation also launched the five-litre jumbo-pack for the first time mainly
targeting at bulk buyers such as hotels, restaurants and coffee shops. With 17 lakh
litres of milk consumed within the State every day, the milk federation aims to
produce 40 lakh litres of milk a day by 2008-09.In addition to Co-operative
societies, several private dairies as well as loose vendors meet the demand for milk
in the State. Milk is consumed in the State in varied forms ranging from fluid milk
to the products like peda, ghee, Bengali sweets, which are liked most in urban
conglomeration. Though, milk is produced in every village, these urban
conglomeration are the major outlets for both branded and loose milk. Bangalore is
the fastest growing city in the State. The population is heterogeneous with diverse
cultured, regional, religious and economic background. It was estimated that the
demand for liquid milk was13, 00,000 litres per day in Bangalore city during 2006-
07. The cooperatives were able to supply 50-60 per cent of packed milk.