Gokul Project 2010

THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.

INDUSTRY PROFILE

Garden city college , Bangalore1


INTRODUCTION TO DAIRY INDUSTRY

India is the largest milk producer in the world with an annual production of 84.6

million MT. India is 'The Oyster' of the global dairy industry. It offers opportunities galore to

entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest

growing markets for milk and milk products. A bagful of 'pearls' awaits the international

dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace

with the galloping progress around the world. Dairy developments have its profound impact

on the economy and nutrition levels of the country. Greater improvement opportunities are

generated through dairy industry

India’s dairy sector is expected to triple its production in the next 10 years in view of

expanding potential for export to Europe and the West. Also, India is the lowest cost

producer of per litre of milk in the world, at 27 cents, compared with the U.S' 63 cents, and

Japan’s $2.8 dollars. Also to take advantage of this lowest cost of milk production and

increasing production in the country multinational companies are planning to expand their

activities here.

The “operation flood” was launched in the year 1970; it was basically aimed at increasing the

production of milk and increasing the per capita consumption of milk. It is successful upto

some extent. The per capita consumption of milk has been increased from 112 grams in 1970-

71 to ----- in 2006-07.



DAIRY DEVELOPMENT

Before the year 1946 there were no milk unions /milk dairy in India. In the year 1946, first

milk union was formed by a person Mr. Peschenji Edulgi Pollson in Gujarat’s Khaira district

and the village was “Anand.” This was named as “Anand Milk Union Ltd.” i.e., “AMUL.”

At the time, Pollson was purchasing Milk from villagers of Khaira and Maisa at cheaper rate

and then sell the milk and its products in metropolitan cities Mumbai etc. at higher rates and

earn more profit.

4th January 1946 was a turning point, where people of Khaira and Maisa district met Sardar

Vallabhai Patel, as they were already awakened by the Polson’s business. So they thought to

start a cooperative society of farmers who were selling the Milk to Pollson. So, the first

cooperative society was started at Rawrapura. The two primary cooperative societies were

established under the leadership of Murarji Desai.

When we were discussing about dairy development, it will be incomplete without knowing

what about Dr. Varghese Kurien.

Dr. Varghese Kurien is called as Father of White Revolution in India. He graduated in

physics from Loyola College, Chennai and B.E. (Mech) from Madras University. He is

credited with architecting “operation flood” the largest dairy development program in the

world.

The chairman of Khaira District Cooperative Milk Producer’s Union Ltd. formed Tribuvan

Dairy Plant and this marked the rebirth of AMUL. The AMUL pattern of cooperative had

been a great success. It encouraged Dr. Kurien to set up NDDB to replicate the AMUL

pattern of cooperative across India.



Once societies formed at village level, later district level milk unions established. It included

all societies coming under that particular district. Once, societies and unions at district level

were established, and then State Federations were established. Federation took care of all

these unions and societies throughout the state.

During the 1950s and 1960s, India was one of the largest importers of dairy products,

importing over 40 percent of milk solids in the total throughput of the dairy industry. The

commercial import of milk powder reached its peak at about 53 thousand tons in 1963-64

(Kanitkar, 1999). This concerned policy makers, and a decision was made to achieve self-

sufficiency in milk production. The major step forward, which has had a far-reaching impact,

came in mid-sixties with the establishment of the National Dairy Development Board

(NDDB) to oversee dairy development in the country. The Operation Flood (OF) program,

one of the world's largest and most successful dairy development programs, was launched in

1970; its main thrust was to organize farmers' cooperatives in rural areas and link them with

urban consumers. Operation Flood has led to the modernization of India's dairy sector and

has created a strong network for procurement, processing, and distribution of milk by the

cooperative sector. In 1989, the Government of India launched the Technology Mission on

Dairy Development (TMDD) program to support and supplement the efforts of Operation

Flood and to enhance rural employment opportunities and income generation through

dairying.

India is currently the largest producer of milk in the world, overwhelmingly thanks to the

output of millions of smallholder farms. The OF (Operation Flood) cooperative movement

has been important in dairy marketing in different parts of the country and undoubtedly has

played an important role in keeping smallholders involved with this fast-growing sector.

During the past three decades, milk production in the country has increased from about 22

million tons in 1970-71 to 84 million tons in 2001-02 (GOI, 2003). The per capita availability

of milk, which had decreased during the pre-OF period, not only kept pace with the growing

population but increased from 107 grams in 1970 to 220 grams in 2000-01.

The Indian dairy industry is poised for dramatic growth in the coming decades. The

population growth, urbanization, income growth, high income elasticity of demand, and

changes in food habits that fueled the increase in milk consumption are expected to continue



well into the new millennium, creating a veritable Livestock Revolution. As these events

unfold, not all the changes are good, and they have major implications for poverty alleviation,

environmental sustainability, public health, and ethical concerns about the treatment of

animals as sentient beings. The rapid increase in demand for dairy products in developing

countries has led to the growth of milk-production activities in semi-urban areas, which are

essentially detached from their supporting land base. The demand for milk and dairy products

is increasingly being met in urban and semi-urban areas by industrial dairy farms, which

often generate large amounts of waste.

Traditionally, milk production in India has been closely integrated with crop production.

However, environmental problems escalate with the scale and intensity of operations, ranging

from the least worrisome in traditional systems to highly threatening in large-scale farms. The

pollution problem in rural areas is internalized, as the small amount of manure produced is

used as fuel or organic fertilizer to improve the soil for crop and fodder cultivation. In the

commercial production system, a large amount of waste is generated, which needs to be

treated before its disposal or use. Doing so requires not only careful planning but also large

capital investments to create the infrastructure for waste treatment and its economic disposal.

The establishment of large commercial dairy farms in urban areas may create some social

problems. The growth stimulus coming from the strong demand for livestock products is not

transmitted to the rural areas, where it could encourage rural development, more equitable

distribution of income, and poverty alleviation. Small producers find it difficult to compete

with large commercial units due to policy distortions. Milk production in rural areas

generates supplementary income and employment opportunities, which are adversely affected

by the growth of commercial dairy farms.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

NDDB has been established in order to support the dairy development in the India. The NDDB is aimed at

Providing financial assistance to the cooperative dairies. Providing technical support. Providing marketing assistance.

Details about NDDB NDDB has 170 cooperative unions its members. NDDB has 15 state federations under its operations.



NDDB operates in 285 districts. NDDB covers nearly 1, 01,000 villages under its operations.

Total milk production of the industry was 21.2 million MT in 1968 and the production has considerably increased to 84.6 million MT in 2004-05 due to the efforts of NDDB.

MARKETING

The market for dairy cooperative has been encouraging. In 2001-02 average dairy cooperative milk marketing stood at 134.23 lakh liters and is expected to grow at 5% over the next five years.- During the last decade the milk supply to each 1000 urban customers has increased from 17.5 to 47.3 liters. This increase encourages the cooperative milk marketers.- The annual value of India’s milk production amount to Rs.850 billion.

COOPERATIVE DAIRY UNIONS AFFILIATED TO NDDB

NDDB has 15 state dairies cooperative unions under the operation. The dairies cooperative unions are:1. Andhra Pradesh Dairy Cooperative Federation [APDCF]

2. Bihar Cooperative Milk Producer’s Federation [BCOMFED]

3. Gujarat Cooperative Milk Marketing Federation Limited [GCMMF]

4. Haryana Dairy Development Cooperative Federation [HDDCF]

5. Himachal Pradesh State Cooperative Milk Marketing Federation Limited [HPSCMPF]

6. Karnataka Milk Producer’s Federation [KMF]

7. Kerala State Cooperative Dairy Federation Ltd [KCMMF]

8. Madhya Pradesh State Cooperative Dairy Federation Ltd [MPCDF]

9. Maharashtra Rajya Sahakari Maryadit Dudh Mahasangh [MAHASONGH]

10. Orissa state cooperative Milk Producer’s Federation Ltd [OMPFD]

11. Pradeshik Cooperative Dairy Federation Ltd (UP) [PCDF]

12. Punjab State Cooperative Dairy Federation Ltd [MILKFED]

13. Rajasthan Cooperative Dairy Federation Ltd [RCDF]

14. Tamil Nadu Cooperative Milk Producer’s Federation Ltd [TCMPF]

15. West Bengal Cooperative Milk Producer’s Federation Ltd [WBCMPF]

(Ref: as on 15th Aug., 2007)

These cooperative unions are affiliated to NDDB and these unions get financial technical and

marketing assistance from NDDB.



COMPANY PROFILE



INTRODUCTION

The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur was established on

16th March 1963 under the Co-operative Act. It made a moderate beginning g by collecting

700 liters of Milk per day from 22 societies. Most success stories have a humble beginning &

also it has been with Kolhapur Zilla Dudh Utpadak Sangh Maryadit.

On 16th March 1963 a spark stormed a fire to help the White Revolution revolt heavily, when

on this day came into being the “Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd” with the

introduction of its popular brand of Gokul Milk & its wide range of Dairy products in to the

market.

The Kolhapur District Co-operative Milk Producers Union Ltd., Kolhapur established on

16th March, 1963 under Co-operative Societies Act (Regd. No. KPR-PRD [A] 102), made a

moderate beginning by collecting 700 liters of milk per day from 22 societies. The basic



function of the union during the formative years was to procure the milk and supply it to the

government dairy in Tarabai Park, Kolhapur. This modus operandi continued for many years.

In 1978, The National Dairy Development Board included Kolhapur District under Operation

Flood area and this was the beginning of a new era for the milk union. The project was

financed by the National Dairy Development Board (NDDB). On turnkey basis NDDB

constructed a 2 lac liters per day capacity dairy plant at Gokul-Shirgaon. Similarly, at

Gadhinglaj and Bidri chilling centers of 75,000 and 50,000 liters / day capacity were also

constructed with the help of NDDB. Two more Chilling centers at Gogave and at

Tawarewadi have proposed under operation flood-III programme of National Dairy

Development Board. The expansion of Cattle Feed Plant from 100 MTD to 200 MTD has

been completed during Oct., 1992, under the financial assistance from National Dairy

Development Board under OF-II programme.

The dairy was commissioned towards the end of 1985. Meanwhile, with the efforts of the

National Dairy Development Board, the government milk scheme in Kolhapur was handed

over to the Kolhapur Dudh Sangh in 1985. With commissioning of a new dairy at Gokul

Shirgaon, the government became defunct. During 1985, the average milk procurement was

114836 liters per day with 676 village level societies affiliated to the Dudh Sangh.

Therefore, the raise in procurement every year has been very fast and in

1994-95 the average procurement was 376,501 liters per day. In the flush of 1994, maximum

milk procurement touched figure of 4, 47,262 liters per day.



COMPANY PROFILE

1) Name : The Kolhapur District Co-operative Milk producers Union Ltd., Kolhapur

(GOKUL DAIRY)

2) Location : B-1, M. I. D.C. Gokul Shirgaon, Kolhapur- 416234. Maharashtra, India

3) Registered Office : VIKAS KAKSH, TARABAI PARK, KOLHAPUR, Maharashtra

4) Establishment : 16th March, 1963

6) Constitution : Co-operative Society

7) Working Hours (Tuesday to Sunday) : 8:15 AM to 6:15 PM

8) Weekly Holiday : Monday

9) Phone Number : (0231) 267 23 11 (5 lines)

10) Fax : (0231) 267 23 74

11) Telex : 195/248

12) Gram : DUDH SANGH



13) Website : www.gokulmilk.coop

14) Email: Chairman: [email protected] Managing Director: [email protected]

Sales: [email protected]

15) Annual Turnover : Rs. 425 Crores (FI-2006)

4.2 NATURE OF THE BUSINESS CARRIEDThe organisation involved in production of milk products such as Skimmed milk powder,

Butter, Ghee, Table butter, Shrikhand, Curd, Paneer and Lassi. It also stores and sells the

milk. Thus, the following are the major activities carried by the Kolhapur District Co-

operative Milk Producer Union Ltd.,:

Undertake activities of procuring clean and quality milk at main dairy and chilling

centers from dairy farmers through their Village Co-operatives and remunerative

price throughout the year on qualitative basis.

Process and convert into products the milk received from the dairy co-operatives,

take up commercial production and marketing of Gokul products such as Milk

powder, Ghee, Butter, Table Butter and Shrikhand (Sweet Curd). Supply surplus

milk to Mahanand Dairy, Mumbai managed by Maharashtra Rajya Sahakari

Maryadit Dudh Mahasangh (MAHASONGH), Mumbai, Goa Union and to other

cities and towns for consumption of consumers.

Manufacture balanced Cattle Feed for supply to the dairy co-operatives in the milk

shed at reasonable price.

Convert conventional dairy co-operatives into Anand Pattern and regularly

monitor their functions through Extension Services Wing of Procurement and

Input Department.


mailto:[email protected]



http://www.gokulmilk.coop/


For maintaining rate of milk production in Kolhapur district, here onwards a stress

will have to be given on scientific breeding. Shortage of semen material of

excellent genetic quality is main problem which is being faced in animal breeding.

For this matter progeny testing and sire proving programme will have to be taken

up. Embryo transfer activity undergoing in the Kolhapur Union is additional

complimentary point for the above programme.

With a view to create awareness and encourage lady farmer members in day to

day activities of milk production and management of co-operative societies, a

separate cell called Co-operative Development Cell is opened.

With the help of NDDB, a training centre is established to train society

secretaries, management committees, first aid and milk testers etc for effective

management of Dairy Co-operatives. This facility is also extended to the adjoining

district Milk Union.

The above stated products are sold under family brand name of Gokul. Marketing of

liquid milk & products outside the state is organized by the federation. Excellence in quality

is maintained to lay a solid foundation for widespread acceptance for Gokul products.



4.3.1 OBJECTIVES To organize the co-operative structure of milk producers at the village level.

Development of infrastructure for procurement of Milk in rural areas of Kolhapur

District to ensure an assured market for Milk producers throughout the year, as well

as good remunerative prices.

Fulfill the growing need for Milk & Milk products of the consumers in Maharashtra &

else where.

Supplement the programme extension & inputs, with particular reference to feed &

fodder production & implement an intensive breeding programme for Milk animals to

increase Milk production.

Imparting training for developing human resource at rural level for effective

leadership, Management skills & improvement of services to rural Milk producers.

Procuring milk throughout the year at morning and evening from milk producers by

organizing dairy cooperative societies on ‘AMUL PATTERN’ & providing

remunerative rate and regular market to the milk produced by the members.

Paying good remunerative rate to farmers based on the quality i.e. fat & S.N.F

percentage in the milk.

channelizing technical inputs such as :

Artificial insemination.

Supply balanced cattle feed to the farmer producer at no loss profit base.

To ensure supply of improved varieties of fodder seeds & seeding at subsidized

rates.

Supervision by trained officers of the union & guiding about clean milk

production & modern dairy husbandry practices.

Developing leadership in the economic up lift of the producers & making the

farmer producers self reliant economically.

Processing and marketing milk by



i. Chilling

ii. Pasteurization

iii. Packing &

iv. Supplying to the sales outlet

4.3.2 VISION

Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd., Kolhapur, commonly known

as Gokul is a farmer's Dairy Co-operative organisation dealing with more than 300,000 rural

milk producers. This professionally managed organisation is working under able and dynamic

leadership of its Chairman, Mr. Rajkumar S Hattarki. Its paid-up share Capital is of Rs.150

million and its annual turnover is of Rs.3.5 billion.

Daily 460,000 liters of milk is handled by the organisation out of which about 80% share is of

buffalo milk. Its main dairy of 750,000 LPD capacity with powder plant of 30 M.T. per day

capacity is situated at Kolhapur in Maharashtra State. This processing facility is

supplemented by a chain of Chilling units located in its operational area.

On the merit of its excellent performance, the organisation has won Indian National

Productivity Council Awards for 11 times during last 11 years.

It is highly cautious in observing strict quality control norms in its various operations. To get

ISO-14000 certification in the upcoming year.

While striving hard to provide utmost satisfaction to its esteemed customers it is also

constantly endeavoring to improve the quality of life of its rural producer members through

execution of unique village development programmes i.e. Gokul Gram Vikas Yojana.

In order to enhance Milk production, the Sangh provides on credit, quality Cattle feed on a

'no profit no loss' basis, as well as free A.H. services & nominally charged A.I. services to the

Producer members.

All-round achievements of organisation is cumulative outcome of visionary directions from

its members of Board of Directors, Managing Director, dedicated work put up by its able and



devoted staff and last but most important one is whole hearted involvement of its member

producers in policies of organisation.

4.3.3MISSION

The mission identifies the basic function or task of an enterprise or agency or any part of it.

Every kind of organized operation has, or at least should have if it is to be meaningful, a

purpose or mission. In every social system, enterprises have a basic function or task that is

assigned to them by society.

So, people sometimes think that the mission of a business, as well as its objective, is to make

a profit. It is true that every kind of enterprise must have, a ‘surplus’ in business, a ‘profit’

goal or objective if it is to survive and do the task society has entrusted to it.

Thus, The Kolhapur District Co-operative Milk Producer Union Ltd. has following mission

statement:

We Endeavor to satisfy the taste and nutritional requirements of the customers

through excellence in marketing by Gokul team, and committed to offering quality

products that provide best value for product.



4.5 AREA OF OPERATION - REGIONAL

The Kolhapur Milk Union covers all the twelve talukas as follows:

1) Karvir

2) Kagal

3) Chandgad

4) Gadhinglaj

5) Ajara

6) Radhanagari

7) Gaganbavada

8) Budargad

9) Shahuwadi

10) Panhala

11) Shirol

12) Hatkanagale

However, 41 villages from Hatkanagale and Panhala talukas are affiliated to Warana

Milk Producers Union. So, it has covered all the major areas of the Kolhapur district

by operating at regional level.

4.6 OWNERSHIP PATTERN.

The Kolhapur District Co-operative Milk Producers Union Ltd., builds and runs under

the co-operative institutions such as:

It is working as a District Co-operative Society. (DCS)



It also works under National Dairy Development Board. (NDDB)

because, NDDB has played very important role in the development and

progress of Gokul. Gokul has been quite successful in implementation

of operation flood phase-I and phase-II. This resulted in creation of

tremendous milk production.

4.7 COMPETITION ANALYSIS

In today’s world, every organization is in search of the market potential, the Kolhapur district

is not large as other metros. Thus, the city can be easily targeted by the competitors.

The main competitor for every dairy is the milk man. They are the one who have captured

major share of the milk supply because of their long term relationship and contacts they have

maintained with the customers. Dairies like Mata, Mahalaxmi, Warana, and Arokya are

based on religious matters captured 15% of the market shares.

Most of the companies tried to face the competition and they were failed. But, The Kolhapur

District Co-operative Milk Producers Union Ltd., is the leader of the market. But, now days,

because of entry of all these dairies the organizations is facing lot of competition. The

neighboring states Karnataka and Goa have entered into the market to compete with the

brands like Mahalaxmi, Arokya, and Warana are entered into the Kolhapur market.

Brief history about competitors of The Kolhapur District Co-

operative Milk Producers Union Ltd.

The Kolhapuri people taste new brands of milk every year Right now/ till date there are 16

competitors in the market apart from Gokul. There 5 major brands which are very

competitive for Gokul are,

Arokya,



Mayur.

Sahyadri

Mahalaxmi

Warana

Arogya Dairy: It procures most of the milk from south side of the Kolhapur District,

because the immediate state is Karnataka and Arogya is one of the leading dairies in

Karnataka. It procures 10,000 liters of milk every day. It is located near Desur a village of

Belgaum district 10 kms away from city on NH4 A- they supply most of the procured milk to

the some milk societies of The Kolhapur District Co-operative Milk Producers Union Ltd..

Mayur Dairy: It procures milk mainly from district’s large scale milk. It procures more

than 25,000 liters per day. It is also located in Kolhapur & the supply milk to Kolhapur as

well as Belgaum district.

The standard milk of Mayur dairy contents a fat of 6.5% & 9% with this fat & S.N.F they

supply nearly 10,000 LTPD.

Sahyadri milk: The dairy is located in Shinnolli Taluka, Chandgad & district Kolhapur.

This is 115 kms away from Kolhapur city. It procures dairy about 30,000 LTPD which will

be supplied in some part of the district as well as in the Karnataka state.

Mahalaxmi Dairy: The Mahalaxmi dairy plant is located near Kolhapur, which procure

round about 15,000 to 20,000 LTPD & its target market area in Belgaum district, Gokak & in

Maharashtra state. Besides, the above main brands to other competitive brands like Krishna,

Gopal, Aditya, and Arokya etc.



4.8 INFRASTRUCTURAL FACILITIES.The Kolhapur District Co-operative Milk Producers Union Ltd., has played a very important

role in the development of infrastructural facilities of the organisation as well as development

of the surrounded rural areas. So, some of the facilities which the organisation has provided

are as follows:

-Facilities to the Rural People

1) GOKUL GRAM VIKAS YOJANA

This programme is in operation since 1989 and the main highlight is “Extensive Extension

Education”. This programme has covered more than 1078 villages and has engaged in many

developmental activities as follows:

a) SOCIETY BUILDING PROGRAMME

The following table represents the details of this programme and various activities conducted

under this programme.

TRAINING TYPE No. OF PRAGRAMMES No. OF PARTICIPANTS

Men Training 43 2,636

Women Training 39 3,220

Committee Visioning Programme 48 545

Cleanliness Contests 28 674

Sahakarmunch Programme 42 904

b) CLEAN MILK PRODUCTION ACTIVITIES

The following table contains the details of clean milk production activities carried by the

organisation in different routes, and DCSs.



Number of Routes Covered 182

Number of DCS covered 3008

Number of programmes organized 3,649

Number of participants 1,60,501

c) SUBSIDIES PROVIDED TO THE MEMBERS

The following table gives information about the various subsidies provided by The Kolhapur

District Co-operative Milk Producers Union Ltd., to its members as follows:

S. No Particulars Rs.

1 Purchase of Cow & Buffalo 5000-7000 per animal

2 Society Building 22000-35000

3 Computerization 20000

4 Purchase of Generator 4000

5 Bore well 10000

6 Purchase of Milko Tester 3000

7 Women Excursions 15 per woman per day

8 Fodder plot(100% verification of plots) -

9 Veterinary Services(Emergency round the

clock regular once in the week)

-

10 Training at MU Training Center(25%

concession in fee)

-

d) GRANTS POVIDED TO DCSs AND FARMERS TILL 2008-09.

Grant Item Nos. Rs (in Lac)

Buffalo Purchase 902 1120

Cow Purchase 92 330



DCS Building 439 112

Bore well 26 26

Computers 623 212

Generators for DCSs 468 19

Battery for DCSs 73 1

Milking Machines 13 4

Women Visits 41 1

Total Amount- 1826

Thus, these above all are the activities and facilities provided by The Kolhapur District Co-

operative Milk Producers Union Ltd., to its members and other rural public. There are many

other programmes carried by the organisation such as:

Training for awareness of law

Training for health awareness

Training for self-development

Training for skill development

Training for leadership development

Training for hygiene awareness

Training for organisation of thrift co-operative

Arrangement gatherings

Arrangement of Excursions

-Infrastructural Facilities to employees

There are also some infrastructural facilities provided by The Kolhapur District Co-operative

Milk Producers Union Ltd., to its workers, employees and to the Gokul diary. They are as

follows:

Security facilities to the workers, especially to the women workers and employees.



Canteen facilities to the employees.

Shifts facilities-3shifts per day.

Overtime facility during the on-season.

Fully computerized office working and networking, The Kolhapur District Co-

operative Milk Producers Union Ltd., is having its own computer section called

Management Information System (MIS).

Posh offices and health work culture and environment.

4.9 ACHIEVEMENTS OR AWARDS

Gokul Dudh Sangh, thanks to its high production standards & exemplary

performance, has won the National Productivity Council Award 11 times since year 1988-

99. Under guidance & assistance from NDDB & FAO, Gokul implemented a Quality

Management System. The System contributed towards improving quality of the plant & its

output not only up to the National standards but well enough to compete at International

levels. It also got ISO-9002 Certification in the year of 1998. Here are some details of the

awards that we have won over past years..

1) NATIONAL PRODUCTIVITY COUNCIL AWARD (1st PRIZE)

The above image denotes 1st Prize for National Productivity Council Award. The 1st Prize was won for the following years



89-90 91-92 and 93-94 (won for both Dairy & Cattle feed categories)

2) NATIONAL PRODUCTIVITY COUNCIL AWARD (2nd PRIZE)

The above image denotes 2nd Prize for National Productivity Council Award. The 2nd Prize was won for the following years

92-93 (won for both Dairy & Cattle feed categories) 94-95 (won for both Dairy & Cattle feed categories) and 96-97

3) MERIT CERTIFICATE AWARDSThe image on the right denotes the Merit Certificate award, this was won for the following years



93-94 94-95

4.4 PRODUCT PROFILE

The Gokul Dudh Sangh Products are extremely popular in the Local & Distant Markets.

Branded as Gokul Products, they include Milk, Shrikhand, Ghee, Table Butter, and Skimmed

Milk Powder & White Butter.

Moreover, Skimmed Milk Powder is IS-Part I & Part II Extra Grade, which is on its way to

capture the global market. In 1988, Liquid Milk Marketing was launched in Mumbai by the

Dudh Sangh. Sales initially were 16,000 Liters/Day. Today, Standard, Cow & Tonned Milk

together account for more than 3.5 Lakh Liters/Day. In 1993 Gokul Milk was launched in

Pune where the sales are 20,000 Liters/Day. The present sale in local Milk market is 70,000

Litres/Day. Thus, the following chart explains the different types of products of Gokul Dairy:



1) MILK

The following table gives the details of the Brand, the different kinds of milk, packing size, Fat, Rates, Moisture, SNF, Carbo-hydrates, Minerals, Protein, and Curd.

Brand Gokul

Packing sizes

1 Litre & 500 m.l. Pouches

STANDARDISED MILK

Fat 6.5 %

SNF 9.2 %

Rate per Litre

Rs. 20/- Local

Rs. 20/- for Pune, Kokan & Belgaum



Rs. 22/- in Mumbai, Thane & Raigad District

COW MILK

Fat 4.1 %

SNF 8.5 %

Rate Rs. 19/- Mumbai, Thane & Raigad District

TONNED MILK

Fat 3.1 %

SNF 8.5 %

RateRs. 17/- for Mumbai, Thane & Raigad District Rs. 16/- for Kokan & Belgaum

DOUBLE TONNED MILK

Fat 1.5 %

SNF 9.1 %

Rate Rs. 15/- for Mumbai, Thane & Raigad District.

2) SHRIKHAND

Brand Gokul

VarietyBadam Pista

Mango, Ilaichi, Nutmeg

Fat 7 %

Sugar 40 %

Protein 9 %

Packing Sizes Rates per K.g.

500 gm. Poly Bag Rs. 94/- (only for Ilaichi)

250 gm. Poly BagRs.100/- (only for Ilaichi)

500 gm. Cup Rs. 110/-

250 gm. Cup Rs. 120/-



100 gm. Cup Rs. 130/-

3) GHEEGhee is the another one product of Gokul and the following two tables represents the information regarding the information related to the product and other necessary instructions such as usage of the product, distribution, labeling instructions, shelf time, market place and scope of hazards.

SL.NO. Particulars INSTRUCTIONS1 Product Name “Gokul Ghee”2 Usage It is ready to consume or it can be used as an

ingredient in making various food products.3 Shelf Time Six months from the date of manufacture4 Market All over India5 Labeling Instructions Batch number, Date of manufacture, Best

before date, Box number, Workers code number, Gross weight, Vegetarian, logo and AGMARK label.

6 Distribution Covered Vehicles7 Consumer General population, Confectionary and any

food industry.8 Storage Condition At ambient temperature9 Scope of Hazards Biological: None,

Chemical: Rancidity, Cleaning and Sanitizing chemical residues.Physical: Leaching of tin and possibility of


Brand Gokul

Packing sizes

1 Ltr. Pouch

500 gm. Pouch

Fat 99.7 %

Moisture 0.3 %

Rates Rs.280/- per 1 Ltr.


pieces.

4) BUTTER

In Butter there are two types one is Yellow Butter which is consumed or used by institutions and another is table butter which is consumed by the general population.

A) TABLE / COOKING BUTTER

B) WHITE/YELLOW BUTTER

Brand Gokul

Packing size20 K.g. Box

Fat 83 %

Curd 1 %

Cooking ButterBrand Gokul

Packing size 500 gm.

Fat 78%

Curd 2%

SL.NO. QUERIES INSTRUCTIONS


Brand Gokul

Packing sizes500 gm. Pack

100 gm. Pack

Fat 80.5 %

Moisture 16 %

Salt 2.5 %

Curd 1 %

RatesRs.240/- per K.g.

Rs.250/- per per K.g.


1 Product Name Gokul Table Butter & White/Yellow Butter2 Usage a) Table Butter: For Direct consumption.

b) White/Yellow Butter: It can be used to preparation of Ghee and other confectionary products.

3 Shelf Time a) Table Butter: 6 months from the date of manufacture.b) White/Yellow: 12 months from the date of manufacture.

4 Market All over India.5 Labeling Instructions6 Distribution Covered vehicles7 Consumer a) Table Butter: General Population

b) White/Yellow Butter: Institutional Sale.8 Storage Condition Below 10 C9 Scope of Hazards Biological: Yeast & mold, coli forms.

Chemical: Cleaning & sanitizing & printing ink.Physical: Hair, or any other physical matter like polythene pieces etc.

6) SKIMMED MILK POWDER

Brand Gokul

Packing sizes

1 K.g. Poly Bag

500 gm. Poly Bag

100 gm. Poly Bag

25 Kg. in Bag

Fat 1.0 %

Moisture 3.5 %

Protein 35 %

Carbo-hydrates 51 %

Minerals 7 %

Rates 1 K.g Poly Bag, Rs.200/- per K.g.

500 gm. Poly Bag, Rs.200/- per K.g.

100 gm. Poly Bag, Rs.210/- per K.g.

4.10 WORK-FLOW MODEL (END TO END)



Production process of The Kolhapur District Co-operative Milk Producers Union Ltd.,

(Gokul Dairy) has the following workflow model.

The above diagram represents the workflow model of The Kolhapur District Co-operative

Milk Producers Union Ltd., Kolhapur. First, the milk comes from the DCSs and then the

procured milk is tested and also Fat and SNF are tested.


DCS

Fresh Liquid Milk

Chilling

Storing

Pasteurization

Storing

Packing

Dispatching

Sample Testing

Fat and SNF

Separation

Homogenization


After testing the milk has to be chilled and stored. Pasteurization, separation, and

Homogenation is done. After Homogenation the milk has to be stored and then it packed and

finally dispatched to the existing market.

2.11) FUTURE GROWTH AND PROSPECTUS The government of Maharashtra and NDDB has signed a memorandum of understanding

during February 2000, for further strengthening the dairy development activities in

Maharashtra with an outlay of Rs.250 crores. Consequent to the announcement of new

lending terms and conditions by NDDB through an evolution of an action plan –perspective

2010 to enable dairy co-operative to face the challenges of an increased demand for milk and

milk products by focusing efforts. Enhancing productivity, managing quality and building

national information network plans are under implementation. Thus, The Kolhapur District

Co-operative Milk Producers Union Ltd., has the following has some activities for future

growth and it has bright future in the dairy sector.

Preparing for ISO-9001 certification.

Marketing quality improvement.

Developing HACCP-hazards Analysis and Critical Control Points.

Getting export grade milk powder

OVERALL ORGANISATIONAL STRUCTURE



5.1.2) SUB-STRUCTURE OF THE KOLHAPUR DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD.


Board of Management

Managing Director

Procurement & Input

Deputy Manager

Account Officer

Account Assistant

Grade I, II, III

Supredent

Administration

Clerks Compute

r Operator

sAttainder

Security Officer

Assistant Security Officer

Security Guards

Canteen

Cooks

Manager

Deputy Manager

P & I

AssistantP & I

Extension Officer

Deputy Manager

F & F

Agriculture

Officer

Assistants

Deputy Manager Veterinar

y

Assistant Manager

GradeI, II, III

Administration

Assistant Manager

Assistants

Grade I

Helper

Finance Purchase

Veterinary Assistants


The following organizational chart represents the sub-structure detailing with each functional

discipline.

This structure represents a particular organisation destructive capability. It is however

important that more than one such type function exists & described those specialized

organizational units with proximity to power / superior competence when compared to

competitive benchmarks. These vital forces plays a key role in decision making & need to be


Board of Management

Managing Director

Officer

Assistants

Assistants Grade I,

II, III

Clerks

Manager

AssistantsManager

Marketing Officer

M I S Marketing Manager Dairy

Helpers

Dairy Superviso

rs

Operators

DeputyManager

(Production)

AssistantsManager

Technical Officer

Helpers

Technicians

Helpers

Assistant Manager

Engineering

Technical Officers

Dairy Superviso

rsI, II, III

Helpers

Quality Control

Technical Officer

Lab Technicia

ns

Helpers

Stores

Stores Officer

Stores Assistant

Drivers

Transport

Supervisor

Clerks


complementary in order to ensure that they serve as a check on another. The stronger & more

competent they are, the mode difficult it is to achieve cross functional team work. The

company’s challenge is therefore to ensure that these functions are on par with that

competition but they need to ensure that they respond to market demand by cutting across

these functional compartments.

BOARD OF DIRECTORS

1) Shri. Ravindra P. Apte Chairman



2) Shri. Anandrao Patil (Chuyekar) Director

3) Shri. Ranjitsinh V. Patil ”

4) Shri. Vishwasrao N. Patil ”

5) Shri. Rajkumar s. Hatterki ”

6) Shri. Arunkumar G. Dongale ”

7) Shri. Diliprao B. Patil ”

8) Shri. Subhash B. Bondre ”

9) Shri. Nivasrao E. Patil ”

10) Shri. Sureshrao R. Patil ”

11) Shri. Deepak B. PAtil ”

12) Shri. Vishwas S. Jadhav ”

13) Shri. Dinkar S. Kamble ”

14) Shri. Pandurang D. Patil ”

15) Shri. Babaso S. Chougle ”

16) Smt. Arundati S. Ghatge

17) Smt.Anuradha B. Patil ”

18) Shri. D V. Danekar Managing Director

DEPARTMENTS OF THE ORGANISATION



The Kolhapur District Co-operative Milk Producers Union Ltd. has the following

departments.

1. PRODUCTION DEPARTMENT

2. ADMINISTRATION DEPARTMENT

3. ENGINEERING DEPARTMENT

4. PROCURMENT & INPUT DEPARTMENT

5. STORES DEPARTMENT

6. SECURITY DEPARTMENT

7. PROCESSING DEPARTMENT

8. LABORATORY / QUALITY CONTROL DEPARTMENT

9. ACCOUNTS/FINANCE DEPARTMENT

10.MARKRTING DEPARTMENT

11.DISTRIBUTION DEPARTMENT

I) PRODUCTION DEPARTMENTProduction department is the main department wherein the raw material is converted into

finished into products. At Gokul production department is well planned & adequately



equipped manufacturing set up where the necessary infrastructure is available. The quality of

the product is also dependant on the production procedure.

In Gokul the raw milk is processed to form the good quality of milk. During the processing

the milk is differentiated depending on the contract of FAT & SNF (Solids Not Fat).

The production procedure at Gokul is done under different stages. The stages are as

follows:

1. COLLECTION OF MILK In this stage the milk is bought from the various district co-operative societies (DSC) to the

main dairy in a can of 40 litters capacity in tempo’s or in any other vehicles. The cans marked

with two different colours to differentiate between the cow & the buffalo milk. One the milk

is bought to the main dairy it undergoes into following process.

2. UNLOADINGThe cans were unloaded is called as dock station. The cans are unloaded from the vans

manually.

3. ORGANOLEPTIC TESTThis test is carried out by a person manually without using any machines but using his sense

organs like nose & hence it is called as organoleptic test. This test is conducted before the

cans are weighed. In this test various sub-tests are conducted like:

SMELLING (ODOUR) TEST:-

A man at dock station or platform checks the acidic nature of milk by smelling or

tasting the raw milk. If the tasted milk has bad odors then the dairy will pay lower

rate to such society members than the normal rate.

EXTRANEOUS-MATTER APPERANCES:-

In this test the raw milk is undergone into the test, which is conducted by the

chemist. The chemist checks for two aspects mainly whether the milk is



contaminated or not & the milk is in liquid form or curd form. He also checks for

any extraneous matters like dust, flies etc. which lead to spoilage of milk.

AICDIC TEST

As regarding the payment to the suppliers or DSC depends mainly on FAT & SNF

content in the raw milk. The supplier may add sugar to the milk so as to increase

the FAT & SNF content. Hence to avoid this adulteration sugar test is done.

Its procedure is 10ml of milk is shaken in a test tube & 1ml of hydrochloric acid.

Few crystals of resorcinol is mixed to it. The solution is shaken well & heated for

five minutes. If solution turns organ color it is demanded that sugar is mixed to it.

4) STORAGE OF CHILLED MILK

Once all the tests are over, the milk is allowed to store in the SILOS (Storage tank) to

maintain its cold level of 4 degree Celsius. The unions having 7 storage tanks, 3 tanks are

vertical with 30000 litters’ capacity each and the remaining 4 are horizontal among which 2

are having the capacity of 10000 litters each and other 2 of 15000 litters each. After chilling

the milk is passed through pasteurizer for pasteurization.

5. PESTEURIZATIONThis step of production includes heating every particle of milk at 72 degree Celsius in 15

seconds and it cold in less then 4 degree Celsius. When it is passing through pasteurization

the cream is removed depending on the quality of the milk required (Standardization).

6. PACKINGOnce the pasteurization closed is conducted the next step is to pack the milk. The packing is

done by the machine of fluid goods and were as it is done manually in case of solid goods

like Ghee, Shrikhand and Butter. The machine packs the raw milk in two sizes that are 500ml

and 1000ml pouches. These machines are automatic with a capacity of packing 10000 to

14000 pouches per hour. The speed can be even altered according to suitability. These

machines are used to pack all different types of milk in plastic bags. These plastics are

polythene bags required for packing milk.

7. STORAGE



The last but not the process is the whole of production process is storage. The milk packed in

500ml and 1000ml pouches are arranged in the crates. Each cater contain 10 litters of milk.

This caters are stored in cold room which has a temperature of about 5 degree Celsius or

below.

Functions:

Production Planning: The activities like estimating, routing, scheduling, loading, and

dispatching etc.

a) Estimating:

Here they decide the quantity of products to be produced and cost involved on the basis of

sales forecast.

b) Routing:

Here they determine the sequence of operation to be performed in the production process.

They decide about what work to be done, where, and how?

c) Scheduling:

They perform the activities of starting and finishing of work. It is just like a time table for

production of yarn.

d) Loading:

1) Machinery problem solution: This department also sees problem of machines, any defect

in machineries, stoppage problem of machinery etc.

2) Labour requirement for each shift: They also decide how much labour force is required for

each shift.

II) ADMINISTRATION DEPARTMENT



The administration department of Gokul does the following activities or functions:

1. Maintenance of attendance.

2. Establishment of billing.

3. Maintenance of service records.

4. Domestic enquiry.

5. To maintain shifts timing.

6. To look after recruitment process.

7. Conducting training to the new employees and also to the existing

once.

RESPONSIBILITIES OF ADMINISTRATION DEPARTMENT

To look after the overall administration of time office management.

Conducting training to the new employees and also to the existing once.

To look after over recruitment process.

To maintain shifts timings.

STAFF

Staff means that the company has higher able people, trained them well & assigned them to

the right jobs, selection, training, reward & recognition, retention, motivation & assignment

to appropriate are all key issues. Below are given the personnel policies followed by the

organization. In Gokul the administrative department forms the policies. Thus, the following

are some policies regarding the personnel.

Recruitment and Selection:

Due to registration, termination, retirement and transfers the concerned department head will

give the manpower requirements along with the job description. The manpower sourcing is

done through advertisement, manpower consultant, and employment exchanges and

personnel reference.

Promotion:

Promotion is on the basis of seniority and educational qualification.



Induction:

After an employee is employed in Gokul, he\ she has to make familiar to the union and also

to know the objective, value, functions and the operations. This helps the employees to

interact with senior staff members from various departments.

Salaries and Employee Benefits:

Gross salary:

A regular staff member in the union will have a gross salary consisting of basic salary,

dearness allowance, CCA, house rent allowance and conveyance allowance etc.

Other facilities given by the organisation are:

Shift allowance

Canteen facilities

SKILLSThe company’s skills include hard assets such as financial strengths & dominant market share

but it takes the human & managerial input to translate these into a sustainable competitive

advantage. A company’s decision is to decide whether if should be better at what it is already

good at, or whether it should be looking toward higher order capability that is beyond the old.

The important skills of the company’s that are being provided to the employees in the

organisation are as follows.

Rural education, health awareness camps, enhancing the milk donors to the federation

is the main motto.

Everything should be collected in order to enhance & bring forth the rural activities.

In order to bring the dairy farming, cattle breeding to sustain in the market & give

customers & complete satisfaction.

Testing of quality, measuring of volume, improvement in the quality etc, are done in

order to improve the quality standards of products.

Improve the work efficiency of laboratory personnel to disclose the harmful

chemicals/materials in the milk of private brands.

Conducting motivational program & providing the training to enhance the work

efficiency of its manpower.

Thus, Gokul is improving the employee’s skills and techniques through motivating them and

giving proper training to them also through giving proper working condition.



STYLE

Style refers to the employees shared & common way of thinking & behaving unwritten norms of behavior & thought.

Leadership Organizational culture

The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. has its own management style as follows:

a) It has top to bottom or top down style system.

b) The style of organization is authoritarian. It means management cadre follows

authoritative. The indicators of the style are:

Follows rules and orders

Reliable and dependable

Decision making parameter for day-to-day operation:

Top manager will tell marketing manager to collect information regarding daily requirements

of the sale of milk and milk products based on demand. Then this information will provided

to production department indicating production activities

III) MARKETING DEPARTMENT



The marketing department is the nearest of any organization. In today’s highly complex and

competitive world, marketing is the tool, which has to be derived properly to sell the product.

Marketing is the more of a complex job and it requires a great deal of the knowledge about

the market that its competitors. The marketing management requires planning, analyzing,

implementing and controlling of programmes designing to create, build and maintain

beneficial exchange with target buyers for the purpose of achieving organization objective.

OFFICE WORK:-1. Checking daily sales as per the respective agents.

2. Finding new areas where there is demand for milk.

3. Issuing tender and receiving application for opening new parlors and agencies.

4. Fixing/organizing milk distribution routes.

5. Sending of milk / milk products as per the indent.

6. Keeping in track of the timing of vehicles and timely supply of milk.

7. Collection of cash from agents and depositing the same to the milk.

8. Attending complaints from the agents.

9. Meeting agents to solve their problems.

10. Draw new advertising strategy.

Functions

Marketing department performs the functions which relates to distribution of yarn to

customers/consumers. This department performs the various functions. These

functions are described below:

Market survey

The market survey includes defining the target market where potential customers are

available. They identify the customer requirement and the purpose for which the yarn

is use. Then they decide which count should be produced. They also participate in the

production planning.

Branding



They perform the function of branding activity. GOKUL is the brand which was

introduced in1963.To make awareness of this brand they mention there brand, in each

and every correspondence, through website, E-mail, Labeling of the packaging

cartons, etc

Pricing strategies

This department fixes the pricing of yarn. While fixing the price it will consider the

total cost of production, market demand, comparing competitor’s rates and quality and

also will consider customer’s ability to spend on purchasing of yarn.

FIELD WORK:-

Sales promotional activities like advertisement in reality selling. The product in the real

marketing is very hard and tough job. The marketing officer has to go the field and study the

market and they have to plan the strategy. The marketing mix plays a vital role while

appointing the agents they take initial deposit of Rs.2000 in Kolhapur district and Rs.1000 in

Goa. After receiving deposit they issue bond to them. The bond consists of rules and

regulation of the union.

IV) PROCUREMENT DEPARTMENTProcurement department of The Kolhapur District Co-operative Milk Producers Union Ltd. is

headed by manager of procurement who is reported to the managing director. He is

responsible for monitoring entire procurement activities in milk shed area. He is responsible

for giving technical inputs, veterinary benefits, fodder & feeds, cattle feeds, first aid. He

arranges for training for the excellent performance of the society.

Deputy Manager of procurement department is the second authority in the department &

reported to the manager of the department. Veterinary officer in this department is reported to

the deputy manager of the department. His functions are technical area. He provides

veterinary facilities such as health treatment, emergency visits. He arranges for camps,

vaccination programme & he also arranges for training to society in artificial insemination,

dairy animal management & first aid.

V) FINANCE /ACCOUNTS DEPARTMENT



The higher authority of accounts department in The Kolhapur District Co-operative Milk

Producers Union Ltd. is deputy manager. He is reported to managing director. He has overall

control over finance & account division of the organisation.

Verifying & signing of all the cashbooks, ledgers & other statutory returns/ records is

responsibility of deputy manager of accounts department. The deputy manager monitors day

today activities of The Kolhapur District Co-operative Milk Producers Union Ltd. Account

superintendent is in charge of accounts assistance & verified & monitors the work of account

assistant. He has to report all the details to the deputy manager of the department. Account

assistant is reported to account superintendent. He prepares day-today transport bills,

supplier’s bills. He enters all the transactions in the cashbooks. It is the responsibility of the

account assistance to look after / monitor the cash transactions & various payments.

The organisation is following double entry system of book-keeping. Accounts maintained by

The Kolhapur District Co-operative Milk Producers Union Ltd are journal book, general

ledger, personnel ledger, bank book etc.

Functions

Finance department perform the various functions related to receipts and payment of

bill. They carry out the following functions:

Financial planning

Arrangement of finance

Distribution of finance

Finalization of account

Daily administration of account

Correspondence with bankers

Correspondence with government department both state& national level

Providing accounting and control information to management



VI) LABORATORYThe laboratory of Kolhapur District Co-operative Milk Producers Union Ltd. does the

following activities. It also works as Quality Control Department examines and controls the

quality of milk and milk products.

Basic Method : the milk freshness is identified by its smell

Gruber Method: in this method sample of milk i.e. 10.75 ml is added along with 10ml

sulphuric acid & 1ml amino alcohol in Buterometer & is subjected to centrifugal

machine (1200 rpm) for 3minutes

Lactometer Test Method : In this test lactometer is used to know the specific gravity,

the solid contents of milk, method is also known as SNF( solid not fats)

Rosaline Test: to know the sugar addition

MBRT Test (Methylene Blue Reduction Test): To know the life span of milk.

Acidity Test : to check whether the milk can withstand high temperature (during

Pasteurization)

After passing all the tests the milk is allowed for further processing to production department.

VII) DISTRIBUTION DEPARTMENTThe distribution department plays a very important role in every organisation. Thus, the

distribution channel decisions are among the most complex & challenging decision taking by

the firm, because each channel system creates a different level of sales and cost once the

distribution has been chosen the firm usually must stick with it for the long time the chosen

channels strongly effects by the other element in the marketing mix.

The distribution channel of The Kolhapur District Co-operative Milk Producers Union Ltd. is

as follows:



The District Co-operative Milk Producers Union Ltd. manufactures the milk and its products,

after that it distributes to the retailers and it also having its retail outlets at the factory as well

as in major cities.



SWOT ANALYSIS

SWOT ANALYSIS



SWOT analysis is a tool for auditing an organization and its environment. It is the first stage

of planning and helps marketers to focus on key issues. SWOT stands for strengths,

weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors.

Opportunities and threats are external factors.

Strengths:

The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd. has the following strengths:

Gokul enjoys its good image in the market.

It has its wide distribution network which leads regular and timely supply of

milk and milk products.

One more strength of the organisation is it processes the local milk; therefore

it is having reduced transportation cost.

It enjoys highest market shares in the packed milk segment in Kolhapur

district and some part of Karnataka and Goa states.

Weaknesses:

There are also some weaknesses of the organisation. So, following are some of the

weaknesses of The Kolhapur Zilla Sahakari Dudh Utpadak Sangh Ltd.:

Poor retail selling and consumer grievance handling

Commission paid to its retailers is less compare to other brands

Inadequate sales promotional activities.

Opportunities:

Due to wide coverage and social activities carried by the organisation it has the following

opportunities.


STRENGHTS

OPPORTUNITES

THREATS

WEAKNESSES Internal

External


There is a scope for developing new area or market share not only in Kolhapur

district but also in other districts and neighbor states.

Availability of buffalo milk improves milk quality. So, it leads to maximum

coverage of market share.

Threats:

Today the market become borderless, there is a free entry and free exit of any player. Because

of this, customer enables to get full information about what he is buying or going to buy. He

also has more choices and preferences. Thus, The Kolhapur Zilla Sahakari Dudh Utpadak

Sangh Ltd. also has some threats, as follows:

There are no any entry barriers for private players.

Low level of consumer awareness. Many consumers are not aware about the Gokul

and its products.

Persuaded benefits of competing brands Due to low commission for retailer they may prefer to go to other competitors.

FINDINGS

a) FINDINGS:



1) In the year 1964, the average milk procurement was 726 ltrs/day & at present

(2006) the milk procurement is 5.5 lakh ltrs/day.

2) In the year 1964, 26 village level societies were affiliated to the Dudh Sangh & at

present (2006) 2914 village level societies affiliated to the Dudh Sangh.

3) At the establishment of the plant the share capital was Rs.17,400 & at present it is

rose up to nearly 34 crores.

4) In 1964 at the time of establishment the plant incurred a loss of Rs.1463 but due to

its high standards & quality products it is gaining today a net profit of more than 4

crores.

5) The plant has developed so far & has got its goodwill in the market, but these

years the company is not paying attention towards the expansion of the plant.

6) It is found that the milk handling cost is very high, consumer has to pay almost

twice the farm price.

7) Gokul has standard & quality products & its successful in maintaining the

international standards of milk & milk products.

SUGGESTIONS :-

1) Global market for Gokul:

As Gokul is a well developed company it must think of expanding its market globally

as the world is shrinking rapidly with advent of faster communication & financial flow.



2) Increase in milk collection capacity:

I) Provide loan facilities to farmers to purchase the buffalos.

II) Give awards to those members who supply maximum amount of milk to the

society consistently.

3) Reduce down the errors during milk collection:

Manual system of milk collection should replace by computerized automatic milk

collection system.

4) Reduce number of societies:

There should be one society per village for milk collection to reduce the time and

contamination of milk.

5) Machine milking:

All the milk animals of the village should be followed to avoid contamination and

save the time of milk collection.



SUMMARY OF THE ANNUAL REPORT2008-09

PERFORMANCE HIGHLIGHTS

The following table explains the performance highlights of The Kolhapur Zilla

Sahakari Dudh Utpadak Sangh Ltd., as on 01-08-2007.

SOURCE BUFFALO MILK COW MILK TOTAL

1) Gokul 91125 69431 160556

2) Borawade 490171 29656 78727

3) Linganur 53802 13151 66953

4) Tawarewadi 35550 9910 45460

5) Gogave 21058 9268 29367

Total- 255183 132211 387394

TOTAL SALE OF MILK = 5,84,083

1) PRODUCTS MANUFACTURING CAPACITY

Sl.No PRODUCTS CAPACITY (in MTPD)

1 Skimmed Milk Powder 40

2 Butter 24

3 Ghee 06

4 Table Butter 03

5 Shrikhand 01

6 Curd 02

7 Paneer 01



8 Lassi 02

MTPD=Metric Ton per Day

2) PRODUCTION AND SALE OF MILK PRODUCTS (2005-06)

Sl.No. PARTICULARS PRDUCTION (MT) SALE (MT)

1 Butter (WB/YB) 2,635 1,249

2 S.M.P 1,674 555

3 Ghee 361 401

4 Table Butter 76 75

5 Shrikhand 64 55

MT=Metric Ton

SMP= Skimmed Milk Powder

3) STATIONWISE MILK SALES (2008-09)

LPD=Litres per Day

Sl.No. PARTICULARS MILK SALE (LPD)

1 Local Sale 1,10,000

2 Pune 55,000

3 Mumbai 4,30,000

4 Goa 5,000

5 Bulk sale 22,000

Total 6,22,000

4) FINANCIAL STATUS (2008-09)

Sl.No. PARTICULARS Rs. (in Lakhs)

1 Authorized Share Capital 51,000



2 Paid Up Share Capital 3571

3 Net Profit 600

4 Turnover 70200

5 Reserve Funds 3447

6 Fixed Deposit 4073

7 Fixed Assets 3356

8 Long Term Loans 862

MANUFACTURING & TRADING ACCOUNTFOR THE YEAR ENDED 2008-2009

PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.)



To, opening balance

To, purchases

To, manufacturing expenses

To, vehicle

To, wages and salaries

To, Water & Electricity

To, selling and distribution

To, bank loan (interest)

To, Testing & Packing Materials

To, Can Washing & Repairs

To, Insurance

To, Animal Husbandry Charges

To, Depreciation

To,gross profit

30,57,23,573.00

4,37,49,86,995.23

1,63,43,14,264.76

29,86,29,052.18

5,69,19,585.29

2,63,28,613.67

83,51,904.44

14,75,53,63375

91,59,005.72

12,86,083.00

87,74,214.43

92,48,132.14

47,62,17,273.74

By, sales

By Mahalaxmi Cattle-Feed & Milk Products

By, closing stock

5,79,54,85,555.60

1,36,80,24,494.81

30,50,54,635.36

TOTAL

7,46,85,64,685.77 7,46,85,64,685.77



PROFIT & LOSS ACCOUNTFOR THE YEAR 2008-09

PARTICULARS Rs.

Rs. PARTICULARS Rs. Rs.

Salary & Bonus

Other Expenses Interest Bank Commission Printing & Postage Rent Water & Electricity Advertisement InsuranceAudit FeesTraveling AllowanceFuel ChargesElectrical RepairsAdvocate Fees & Court Expenses Machinery Repairs Miscellaneous Expenses Education Fund Depreciation Veterinary & Medicine Vehicle Rent Freight Charges Sales Tax, Service Tax, Fringe Benefit Tax Women ledership / Gokul Gram Meeting Charges

Profit

32,18,84,461.34

1,00,62,911.844,22,174.54

63,49,607.948,38,914.00

5,49,79,642.8991,09,424.2452,12,579.8750,42,857.0087,00,307.5085,17,358.94

1,05,01,354.26

28,38,058.651,83,53,037.27

29,83,063.812000.00

37,11,473.931,04,63,195.30115,19,259.4316,14,291.95

23,75,286.00

28,53,060/513,38,923/90

5,40,96,600.05

Sales Profit

Interest 1) Nationalized Bank 2) Co-op. Society

Dividends

Agriculture Income

Scrap Material Sale

Animal Husbandry

Sales Tax

NDDB Reimbursement

45,70,865.453,18,97,753.0

47,62,17,273.74

3,64,68,818.45

24,00,950.00

15,000

60,85,534.73

2,35,84,812.20

_

10,67,957.04

Total 54,58,40,146.16 54,58,40,146.16



BALANCE SHEET

1-April-2005 to 31-March-2006LIABILITIES Rs. Rs. ASSETS Rs. Rs.Opening Balance

Opening Share 1) Dairy Society 2)Individual Members

Deposits

Reserves & Other Funds

Loan 1) NDDB 2) SECOM 3) Sales Tax Deferral Loan

Funds

Creditors

Debenture

Profit for the year

35,71,34,700.0

10100.00

8,94,15,162.009,49,38,987.2319,49,62,261.3

51,00,00,000.0

35,71,44,800.0

34,53,91,554.69

37,93,16,410,.57

1035035.00

1,70,70,742.89349246443.94

48,66,71,070.5

5,40,96,600.0

Cash in Hand

Cash at Bank

Investments 1) Reserve Fund 2) Fixed Deposit 3) Purchase of Co-op.

Debtors

Fixed Assets 1)Building under Construction2)Machinery under Installation

Stock in Trade

5,21,49,890.0833,42,83,467.02,47,12,000.0

30,61,75,810.0

4,42,84.012.6

1,05,19,761.42

32,50,43,200.00

41,11,45,357.08

5,00,00,000

35,04,59,823.03

40,33,93,850.43

TOTAL 1,65,05,90,876 1,65,05,90,876.


Gokul Project 2010

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