INTRODUCTION MOTHER DAIRY, A UNIT OF KMF Mother Dairy, Bangalore, a flagship dairy of KMF having ISO22000:2005 Certification, was

set up during the year 1984, primarily for dispensing liquid milk to customers through Bulk Vending system. Today, the Dairy stands expanded from 2 Lakh Litres to 7 Lakh Litres milk processing per day. Also, it has facilitates to pack and distribute milk & curd in different packs formats in the most hygienic way. Besides, it has a state of the art facility to manufacture Skim Milk Powder, Dairy Whitener, as well as Whole Milk Powder to the tune of 30 MTs per day. It has established a facility to manufacture more than 20 varieties of Ice cream in the various pack formats to the tune of 15000 Litres per day. Presently, it is undertaking manufacturing and co-packing of 'Amul' brand of ice cream for GCMMF. Mother Dairy, has a network of 616 retailers through whom milk is sold to the consumers. Further, it has satellite modern format joints to sell various varities of milk and 'Nandini' brand of long shelf life and short shelf life milk products numbering around 50. The sale joints are branded as "Nandini Milk Shoppee". Also, cold chain network which is a prerequisite for sale of milk and milk products has been established in 4 strategic locations of Bangalore city as "Walk in cold store" to ensure un-interrupted and constant milk supply to our retailers/consumers. The Dairy is poised to add 4 more varieties of exotic ice creams including pro-biotic, sugar free in the near future and also would undertake manufacturing of very improvised quality of Paneer, Yogurt as well as flavoured milk in bottles. Plans are also under way for automated production of above milk products in the immediate future. There is a plan drawn up for putting in the market ready-to-eat foods "Retorted" and having appreciable content of milk and milk products. The same is planned to be introduced in the mid of 2010. The exclusiveness of Mother Dairy is because of : Mother Dairy cares for quality, hygiene and food safety and hence the dairy was certified for certified for ISO 9001-2000 during the year 2000 and has been certified for ISO 220002005 during 2008. The Dairy has Export Licence for Skimmed Milk Powder, Whole Milk Powder, Dairy Whitener, Ghee and Butter. The Dairy has embarked on Environmental Protection, Energy Conservation Programme and have been suitably recognized by Bureau of Energy Efficiency, Government of India and KREDL, Karnataka. Time being the essence of working Mother Dairy has brought the activities under LAN by adopting appropriate technology. Any business enterprises assessed for its status on the financial performance and Mother Dairy fully believes in this philosophy and has constantly posted positive financial results ever since its existence. In June 1947, an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development project was initiated in 1975. Initially the project covered 8 southern districts of Karnataka Dairy development co-operative was setup with co-operative societies at grass root level, milk unions at the middle level and a dairy development co-operative at state level as an apex body vested with the responsibility of implementing Rs 51 crores project. At the end of September 1984, the World Bank aided project ended and the dairy development activities continued under operation flood-II. The activities were extended to cover the entire state except coastal taluks of Uttar Karnataka districts and

the process of dairy development was continued in the second phase from April 1984. KMF came into existence in May 1984 as a successor to KDDC. The spills over works are financed by NDDB from 1-4-1996 under different terms and conditions. As per the policies of the National Dairy Development Board (NDDB) Mother Dairy was handed over to milk union is capable of processing the entire milk procured by timely implementation infrastructure projects like commissioning f Mega Dairy, new chilling centers and renovation of product block. Mother Dairy has been registered under MMPO by Central Registration authority today; the Union has become the biggest Milk Co-operative Union in southern India. Mother Dairy has been certified for ISO 9001-2000 and HACCP (IS-15000) for quality management and Food Safety Systems. PROFILE OF THE ORGANIZATION (An ISO 9002 and HACCP IS 15000 Certified Only Dairy in South India) Mother Dairy, Bangalore, a Unit of KMF, is set up by NDDB on 7-12-1984. The Dairy has a unique nature of homogenizing the milk and selling to its consumers through 92 automatic Bulk Vending Booths and 92 FRP tanks. The Dairy also caters Milk in sachets and Milk Products through its 289 retailers. The average sale of milk per day is 2.52 Lakh liters during the year 2007-2008. The entire requirement of milk is procured from Kolar Milk Union. The dairy produces Butter, Ghee, Curds, Ice Cream & Skim Milk Powder. The activities of all the Departments at Mother Dairy are being carried out through an on-line computer system. Mother Dairy has an Ice cream plant with capacity of 3000 liters per day has been expended to 10000 LPD. The plant started functioning form October 1997, producing Ice cream under Amul Brand name as well as Nandini Brand name. Dairy industry is playing a vital role in providing quality and hygienic milk and milk products at competitive prices to the urban consumers as well as it is providing employment opportunities to rural people. Dairy enterprise is an important occupation of farmers. In India, nearly 70% of the people depend on agriculture. It is the backbone of India; dairy is linked with agricultural industry largely. Animal husbandry in India is an essential part of crop husbandry. It is mainly a rural occupation closely associated with agriculture. India as the largest cattle and buffalo population, about 1/6th of the cattle and 1/2nd of buffalo population is found in India. BACKGROUND AND INCEPTION OF THE COMPANY In June 1974 an integrated project was launched in Karnataka to restructure and reorganize the dairy industry on the co-operative principle and to lay foundation for a new direction in dairy development. Work on the first ever World Bank aided dairy development project was initiated in 1975. Initially the project covered eight southern districts of Karnataka. KDDC (Karnataka Dairy Development Cooperation) was set up to implement the project. The multilevel, multiunit organization with total vertical integration of all dairy development activities were set up with cooperative societies at grass root level. Milk unions at the middle level and dairy development cooperation at the state level as on an apex body, vested with the responsibility of implementing Rs 51 Crore project.

At the end of September 1984 the World Bank aided ended and the dairy development activities continued under operation flood II. The activities were extended to cover the entire state except coastal taluks at Uttar Karnataka and the process of dairy development was continued in the second phase from April 1984. KMF came into existence in May 1984 as a successor to KDDC. After the closure of operation flood II, the dairy development activities that continued under operation flood III ended on 31st March 1996. The spills over works are financed by NDDB from April 1st 1996 under different terms and conditions. Mother Dairy with a processing capacity of two lakh liters per day was commissioned under operation flood II on 7th December 1984 with a total investment of Rs 6.97 Crores at Yelahanka in a total area of 28.09 acres. It is extended to 4.00 lakh liters under operation flood III during 1993-94 with an additional cost of Rs 3.64 crores. Total investment for this project is Rs 10.61 Crores. ORGANIZATIONAL STATUS OF MOTHER DAIRY By the end of March 2003, the network of 8363 dairy cooperative societies (DCS) has been organized and is spread over 166 taluks of the total 175b taluks in all the 27 districts of Karnataka. These societies have been organized into 13 milk unions. The unions are further federated; there are 38 chilling centers with a capacity of 12.49 LLPD, 4 numbers of farm coolers with a capacity of 0.16,17 numbers of liquid milk plants and 2 products dairies for chilling and processing capacity of 21.20 LLPD conservation (25 TPD) and marketing of milk. To supply balanced cattle feed 3 numbers of cattle feed plant 100 TDP capacity with mineral mixture production facility in one unit are functioning. To ensure supply of quality germ plasma, bull breeding farm and frozen semen bank has been established and is well stocked with exotic quality high pedigree bull. To impart training one central training institute and three regional training centers are functioning. Three diagnostic laboratories have been set up for disease monitoring. Under technology mission for dairy development project, it has been emphasized to distribute liquid nitrogen that is required to store straws. Six kilos of 10000 liters each have been erected at Bangalore, Mysore, Gulbarga, Dharwad, Hassan and Shivmoga union jurisdiction at a total most of 3 crores. KMF has taken the responsibility to supply LN2 in road tankers to the storage silos, for further distribution to A1 centers of milk centers of milk union and department of animal husbandry and veterinary science. FUNCTIONS OF MOTHER DAIRY 1. The capacity of Mother Dairy is about 4.0 lakh liters per day. The Mother Dairy procures around 2.0 to 2.4 liters per day from the Kolar Milk Unions; the milk is processed and sold to consumer of Bangalore City through bulk vending booths, FRP tanks and sachets. 2. Mother Dairy has an ice cream plant of 3000 liters capacity per day. Mother Dairy has made a tie up with the Gujarat cooperative milk federation for manufacture of ice cream in the brand name of AMUL. This ice cream in the brand of NANDINI is sold by Mother Dairy.

3. Mother Dairy has a milk powder plant of 30 metrics tons capacity per day. The surplus milk of affiliated district milk unions is procured and converted as milk powder. 4. Mother Dairy is headed by a director who is functional director cadre officer of the federation in the pay scale of 12800-16720 and duly supported by managerial cadre officers.

PROCUREMENT Mother Dairy procures most of the milk from the above mentioned chilling centers of Kolar milk union and in summer by reconstituting the skim milk powder depending upon the requirement. The price paid to Kolar milk union for procuring milk containing 3.5% fat and 8.5% SNF is Rs. 10.55 per kg. Mother Dairy has a unique nature of homogenizing the milk and selling it to the consumers through bulk vending booths and FRP tanks. In addition to production of toned milk in sachets also produces full cream milk in sachets (6.0% fat and 9.0 SNF), butter, ghee, curd in sachets as well as buttermilk. Mother Dairy also processes milk for supply to Mother Dairy Kolkata through rail milk tankers by making use of the existing deep chilling facility to 1-2 deg. C (glycol chilling). VISION OF MOTHER DAIRY To consolidate the gains of dairying achieved in the state of Karnataka and with a view to efficiently chill, process and market ever developing and increasing milk procurement with an utmost emphasis on the quality and in the process conserve the socio-economic interests of rural milk producers. OBJECTIVES OF MOTHER DAIRY Providing hygienic milk and milk products to the consumers. Providing assured and remunerative market for all the inputs sold by the farmer members. To facilitate rural development by providing opportunities for self-employment at village level, which prevent villagers migrating to the urban for betterment of financial conditions? Organizing milk cooperative societies at village level and providing for extension services. To ensure the provision of milk production, inputs, processing facilities and dissemination of know-how. To improve milk production union providing technical input services like weekly veterinary and emergency services, artificial inseminations, fodder Development. Supply of balanced cattle feed and importing training to DCS (Direct Central Staff) members. Recently under cooperative development training programmers is being imported to all milk producers in a phased manner.

QUALITY POLICY OF MOTHER DAIRY Every employee of Mother Dairy will strive to provide milk and milk products of outstanding quality with competitive rates, prompt delivery and total customer satisfaction.

OWNERSHIP PATTERN Mother Dairy is a joint venture between the Government of Karnataka and the Government of India with an aid from UNICEF; this was dedicated to the people of Karnataka with the main motto of facilitating the people to obtain hygienic and quality milk at a reasonable price. COMPETITORS INFORMATION The success of each and every business unit is mainly depending on how brilliantly it faces competition. Mother Dairy is not out of competition, it has almost 80% market share in Bangalore and presently it is the brand for milk products, the major competitors to Mother Dairy are as follows: Heritage Good Morning Arogya Nilgiris Dodla Gomata Milk Way Swastika Nestl INFRASTRUCTURAL FACILITIES The long term funds from the National Dairy Development Board and the Govt. of Karnataka and the short term funds from the Bank from development activities. AWARD ISO 9002 AND HACCP IS 15000 (HACCP) CERTIFICATE HACCP: Hazard Analysis Critical Control Points Mother Dairy has obtained ISO 9002 and HACCP certificate from Bureau of Indian Standards (BIS) of Government of India from December 2000. Mother Dairy is the first and only dairy to secure the comprehensive certificate in the entire south India. The importance of obtaining this certificate is to: Procure manufacture and distribute the products under controlled set of procedures as per ISO 9002. To identify problem occurrence of hazards during the process of procurement, manufacturing and distribution. To identify the severity of hazards and critical points. To control the identified hazards and to produce of international food standards Products Mother Dairy's range of products include the brands Mother Dairy (milk, milk products, curd, ice cream, butter, etc.), Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices). Mother Dairy Fruit and Vegetable Pvt. Ltd. offers the following products: Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, White Butter, Table Butter, Cheese, UHT Milk, Dhara range of edible oils and the

Safal range of fresh Fruits & Vegetables, Frozen Vegetables and Fruit Juices at a national level, through its sales and distribution networks, for marketing food items. Mother Dairy milk (Bulk Vended Milk) is fortified with vitamin A @2000 IU per litre of milk as a part of social accountability. This program was started with the Mother Dairy, Delhi, since February 1980and there after Mother Dairy is continuing this program on their own as a social responsibility without having any financial assistance from the Government as well as since it is felt that BVM is generally consumed by the middle / lower middle / poor strata of the society. It is also found that the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. At Mother Dairy, processing of milk is controlled by process automation whereby state-ofthe-art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology, Government of India. Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy. The companys derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companys modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day. Quality Standards Mother Dairy is an IS/ ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP, 2002 RvA (Food Safety Management Systems) and ISO 14001:2004 (Environmental Management Systems) Certifications. Moreover, National Accreditation Board accredits its Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration Laboratories, Department of Science and Technology, Government of India.