KARNATAKA MILK

FEDERATION
KMF (KOMUL)
 INTRODUCTION
Karnataka Milk Federation (KMF) is a cooperative dairy federation established in
Karnataka, India. It was founded in 1984 with the aim of promoting the dairy industry
in the state and improving the livelihoods of dairy farmers. KMF operates under the
brand name Nandini and is one of the largest dairy cooperatives in the country.

KMF encompasses a network of district cooperative milk unions and milk producers'
societies, serving thousands of farmers. It procures, processes, and markets milk and
milk products, including ghee, butter, curd, and other dairy-based items.

The federation prioritizes quality control and innovation, adhering to stringent

standards to ensure consumer satisfaction. It also focuses on training and supporting
farmers in adopting best practices for milk production. KMF plays a crucial role in the
economic development of Karnataka's rural regions and is committed to sustainable
practices in the dairy industry.
KMF PROFILE
BACK GROUND OF KMF

In 1975, the dairy sector in Bangalore district developed with IDA assistance under
Bangalore Milk Union Limited.
This initiative later led to the formation of BOMUL, which plays a key role in the
region's dairy industry.
KOMUL, a prominent dairy cooperative in Karnataka, focuses on providing fair
compensation to farmers and high-quality milk products.
KOMUL introduced innovations like community milking machines and bulk milk
coolers, enabling the production of ultra-high temperature milk.
In recent years, KOMUL has expanded its market to include the Chennai market,
selling 5,000 liters of milk per day.
NATURE OF BUSINESS
Karnataka Milk Federation (KMF) is a cooperative organization that is involved in the
collection, processing, and distribution of milk and milk products. It serves as an umbrella
organization for several dairy cooperatives in Karnataka, India, and markets its products
under the Nandini brand.

MISSION
Kolar Milk Union continuously procures worthy quality
milk by providing remunerative price & technical inputs to producers and supply
good quality of Milk & Milk Products to the consumers.

VISION
“Wish to develop into model milk co-operative in the
nation” “Kolar-Chikkaballapura Milk Quality will be a Global Benchmark".
WORK FLOW MODEL
PRODUCTS AT KMF

MILK
ULTRA-HIGHTEMPERATUREMILK CURDSANDOTHER
FERMENTEDPRODUCTS
GHEEANDBUTTER
OWNERSHIP PATTERN
•Borad of Director
•State Government of Karnataka
•Corporate Governance

ACHIEVEMENTS
26/08/2020 Highest UHT Milk Sales is 7.33 LLPD.
22/08/2023 Highest Liquid Milk Sales is 5.29 LLPD.
29/03/2023 Highest Curd Sales is 1,48,810 KGPD
19/06/2018 Highest Milk Procured is 11.64 LKPD.
AWARDS
2008Union received Energy Conservation Award both from Central and State
Governments in Dec.
2009 Union got 1st Place in National Energy Award and 2nd place in State
Energy Conservation Award
MCKENSY’S 7S FRAMEWORK
1.STRUCTURE

KOMUL mainly has the

following departments:
1.Procurement and input
department
2.Production department
3.Qualitycontrol department
4.Marketingdepartment
5.Finance department
6.Managementinformationsys
temdepartment
7.AdministrationandPersonnel
department
 2.STAFF

3.SHARED VALUES:
Shared values are what engender trust and link an organization together.
Shared values are also the identity by which an organization is known
throughout its business areas.
4.STRATEGY:
•Build an infrastructure that supports great client service.
•Resolve client issues at their first point of contact.
•Pricing Policy
PORTER’S FIVEFORCES

Threat of New Entrants

Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat from Substitute
Products
Rivalry among the existing
player
1. Threat of New Entrant
By building economies of scale so that it can lower the fixed cost per unit
Brand loyalty
Switching cost

2. Bargaining Power Of Buyer

Number of customers
Price sensitivity
Switiching cost

3.Bargaining Power of Suppliers

Number and size of suppliers
Uniqueness of each suppliers product
Focal company ‘s ability to substitute
4. Threat Of Substitute Products
Substitute performance
Cost of change
Buyer propensity to substitute
Relative price performance of substitute
Perceived level of product differentiation

5.Rivalry among existing competitors

More number of competitors
Diversity of competitors
Industry growth
Barriers to exit
Switching cost
Industry concentratio
STRENGTHSOFKOMUL:
Quick availability o fraw materials
Popular brand known from years
Milk and Milk products are available at competitive prices
Ability to maintain uniform quality
Timely delivery
New technology implemented for production of milk

WEAKNESSOFKOMUL:
Freezing of marketable area
Lack of flexibility in system
Rivalry among sister unions
Government influence
Lack of personalized service to channel members High overheads
 OPPORTUNITIES OF KOMUL
They procure milk at least cost, without bothering about the welfare of the
producers and without extending any technical inputs for improving milk
production.
They market milk by resorting to unhealthy and unethical practice deceiving the
unsuspecting consumers.

THREATSFORKOMUL
Competition from private dairy companies
Unawareness about the various products of KOMUL among people
Price Fluctuations
Regulatory Changes