QMA Program on 15-05-2012 Talk by Dr.

Reji G Nair [Managing Director, Consumer fed] QMA organized a talk on Success Story of Consumer fed by Dr. Reji G Nair, MD consumer fed on 15th May, 2012. The Kerala State Co-operatives Consumers Federation Ltd is the apex body of the consumer Co-operatives in the state of Kerala. This Apex body was registered on 04/09/1965 and started functioning on 07/10/1965. The objects of consumers federation Ltd is to make bulk procurement of consumer goods and supply to affiliated and/or other Co-operatives Societies and arrange for proper storage, packing, grading and transport of such goods. - To function as agent for the distribution of consumer goods and to import consumer goods whenever necessary. - To establish and run manufacturing and processing units for production of consumer goods in collaboration with or directly by itself. - To undertake such promotional and technical activities which are conducive for promotion of interests of consumer movement. The Membership of the federation is confined to the 14 District Wholesale Co-operative Consumer Stores and the State Government. Eleven primary Co-operative Societies are admitted as Associate Members. 99% of the paid up share capital is contributed by the State Government. The total share capital Federation as on 31/03/2011 is Rs. 5632.24 lakhs out of which the state Government share is Rs 5567.41 lakhs and the rest is of 14 district wholesale stores and 11 other co-operative societies with Rs. 64.82 lakhs and .01 lakhs respectively. The Management of the Federation is vested with the Board of Directors consisting 18 Members, constituted by one representative each of the 14 District whole sale stores and 3 nominees of the Government and the Managing Director. The 3 nominees of State Government include the Registrar of Co-operative Societies. The central administrative (Head office) is at Gandhi Nagar, Ernakulam. There are 7 Regional Offices - Thiruvanthapuram,Kollam, Alappuzha ,Ernakulam,Kozhikkode,Malappuram and Kasargode. Federation has 10 Business divisions namely - Triveni wing, Neethi Scheme, Neethi Medical Scheme, Neethi Gas Scheme, Foreign Liquor Division, Triveni Notebook Division, IT /Computer Stationery wing, Hurry Curry Masala, Copra Procurement and Mineral Water. Federation have a total of 446 units with 207 Triveni mega/little triveni super stores/supermarkets and 218 super markets apart from 7 regional office and 1 head office to function the above business divisions. The other units are Mobile Triveni 7, Floating Triveni 5, Triveni Godowns 41, Neethi Distribution Centre 19, Regional Medical Warehouses 5, Neethi Medical Stores 93, Triveni Note Book Division 1, Neethi Gas Bottling Plant 1, Indian Made Foreign Liquor Shops 46, Beer Units 3, Triveni Spices Powdering Unit 1, Computer Stationery Unit 1, Triveni Stationery centre 1, Triveni Coffee House 8. The number of Triveni Stores and Neethi Medical Stores are on the increase every week. The sale turn over of the federation during 2006-07 was Rs. 445.70 crorers. In 2007-08 and 2008-09 this was increased to Rs. 571.55 crores and Rs. 692.57 crores. During 2009-10 the sale turn over was Rs. 1012.84 crores and in 2010-11 this has increased to Rs. 1227.92 crores. Which shows an average growth rate of 30% per year. The Kerala State Co-operative Consumers Federation was established with main objective of saving the public from the exploitation by retail / middleman. We were dealing mainly in the wholesale of Food & Grocery, Cosmetics, Household & Electrical, Textiles etc initially, which have developed to the net work of 218 numbers of Triveni Super Markets/Little Triveni Super Stores / Mega Marts /Mobile Triveni Stores/ Floating Triveni Super Stores/Triveni Coffeehouses/ Noon Meal Scheme as on date. We have started Triveni units in every assembly constituencies of the State. Specialties under this wing are the 7 Mobile Triveni units, 5 Floating Triveni super stores, 8 Triveni Coffee houses and 1

unit of Triveni Noon Meal scheme. The Neethi Scheme started as per directions of Government of Kerala in 1997 is being successfully implemented through 1000 odd selected Primary Agricultural credit societies in all the districts of Kerala for the distribution of consumer goods at the lowest prices, especially in rural areas. Centralised purchase is being made, as far as possible, from the production centers directly and door delivery of stock is effected to the stores. This scheme has proved to be a boon to millions of rural household of the lower income group. Subsidy sale activities are mainly done under this division. The scheme NANMA PROJECT is to distribute 10 items of essential commodities at subsidised rates through the network of 2300 retail outlets. 2000 of them are run by selected co-operative societies and by the Triveni wing of Federation. Here the items are sold at least by less 20% of market rates. The consumers are benefited by price reduction to the tune of 1000.00 crores rupees annually under various schemes of Consumerfed. Consumerfed directly starts NANMA stores in panchayaths / municipalities. We are presently having 3 NANMA Stores of our own. Federation started the Neethi Medical Stores with the assistance of Government of Kerala from 1 November 1998. Under this scheme medicines are made available to the consumers at a price less by 13 to 40% of the MRP. The role of Consumerfed in the scheme mainly is to procure and distribute medicines on wholesale basis as per the requirement of the Neethi Medical stores. For this we have set up 5 Neethi Medical Warehouses. As it was later found that the Neethi Medical stores run by Primary societies could not cater the needs of the consumers at satisfactory levels in all the places, especially in urban areas, Consumerfed has decided to enter into retail trade also by setting up directly run Neethi Medical Stores, which has got very good response from the public. At present there are 93 Neethi Medical Stores directly run by Federation in addition to the 400 odd stores run Primary Co-operative Societies. We have proposals to start Neethi Medical store in every panchayath. st During the year 1998 when there was acute shortage for Cooking Gas, Consumerfed, at the instance of Government of Kerala had decided to venture into the field of distribution of LPG by releasing LPG connections to consumers through Neethi Stores. As we were not had our own gas filling plant and organizational set up for the distribution of LPG at that time, we have started the distribution by sourcing LPG cylinders from two parallel private marketers, under agreement executed. Later on we have purchased a LPG Bottling Plant in Palakkad and supply of LPG began from there in May 2000. LPG of high quality is being distributed to more than 60,000 consumers at present, under the brand name Neethi Gas. Suneethi Gas launched in 2007 is being attracted by the consumers. Now we are undertaking the refilling for BPL on commission basis. During the year 2001-2002 due to the change in liquor policy of Government, Federation has ventured in the field of Foreign Liquor business. Due to the high rate of Kisth (License Fee payable to Government) and Turn over Tax rate, when compared with the trade margin permitted by Government, this business has resulted in heavy loss from the 1st year itself. The accumulated loss up to 31/03/2006 was Rs. 23.97 crores. From 2006-07 onwards we have introduced radical changes in purchase policy and matters related to foreign liquor business which give positive results. During the last 5 years this business is working in profit. At present we have 46 Foreign liquor shops. Started the manufacture and sale of Notebooks in the brand name of Triveni engaging the skilled workers of Kunnamkulam, a rural area in Trichur District of Kerala, under our direct supervision and control. These notebooks are of high demand among the students community. We have our own

godown at Kunnamkulam, constructed with the financial assistance of NCDC for the storage and distribution of Triveni notebook. The quality and price structure of these notebooks is incomparable with other brands available in the market. At the school opening seasons we conduct school markets in important centers to cater the needs of the students. In June 2005 we have commissioned our computer stationery unit at Kunnamkulam along with the notebook unit. All types of computer pre printed and other stationery items required for Co-operatives and Government Departments are sold here. We have a separate unit for the sale of office stationery items at the head office premises. Requirements of Government and other offices are met from here. We also deal in other students requirements in this unit. Hurry Curry masala prepared and packed in our own spices powdering unit at Thiruvananthapuram is well in demand among the household. Consumer fed is the State nodal agent along with Kerafed and Marketfed for the procurement of Copra, Coconut and Paddy under the Minimum Support Price scheme-2010 by the Government and started the procurement operations from 21/01/2009 and the procurement is in progress. On getting the entire units under networking we are given the honour of E-Consumerfed by the Government, the 1st co-operative federation in the State to get such a status. Subsidy Sale of essential commodities is another attraction of consumer fed. During 2006 to 2011 there were 627 subsidy days and total subsidy outlets was 69279 nos and the total sales turn over was Rs. 976.42 crors. During 2006-06 and 2006-07 the working results was negative. The loss was Rs. 1336.48 Lakhs and 728.49 lakhs respectively with sale turn over of Rs. 35548 lakhs abd Rs. 44,570 lakhs. From 2007-08 onwards the federation started making profit. During 2007-08 the sale turn over was Rs. 57,155 lakhs with a profit of Rs. 151.37 lakhs and in 2008-09 the sale turn over was Rs. 69,257 lakhs with a profit of Rs. 247.72 lakhs. In 2009-10 the sales was Rs. 101384 lakhs with a profit of Rs.324.56 lakhs. The expected sales is Rs. 122792 lakhs in 2010-11 with a profit of Rs. 226 lakhs. Audit of the Federation is conducted by Co-operative Department officers. During the last three years audit of 10 financial years has been completed which is a record in audit of Apex Federations in the State. Audit up to 2009-10 has been completed and certificate received. 2010-11 audit is nearing completion. The Turnover in 2010-11 has increased by 872.44 crores compared to just 5 years back. After the gap of more than 10 years Consumerfed has earned profit during 2007-08 and 2008-09 as per audited accounts. We could get such stunning results through change in business policy and by adopting strict measures to reduce trade and administrative expenses. Federation is successfully working to achieve its object of market intervention through its net work of 218 Triveni Mega Supermarkets/Triveni Super Markets/Little Triveni Super Stores/Mobile Triveni and Floating Triveni. Supply of Goods to 1,000 odd Neethi Stores run by primary Co-operative Societies, mostly situated at rural areas is done from our Neethi Scheme. The services rendered by Consumerfed through the distribution of medicine at comparatively low price provide great relief to the low income group patients to a great extent. We are running 93 own Neethi Medical Stores. So also Neethi as, Triveni Note books, Triveni Hurry Curry powder, products of Consumerfed, are well accepted by the consumers. The in-takers of unadulterated foreign liquor sold the 46 FLI shops of Consumerfed are on the increase year after year. Since inception Federation has evolved to be an integral part of every sections of the community in Kerala for satisfying their daily requirement of necessary articles. Today we play a vital role in Keralas consumer market by our effective intervention in the market and supply a wide range of multiple consumer products of day to day requirements to the consumers at their highest satisfaction,

through the net work of nearly 450 own units and more than 1,400 other units controlled by consumer fed. By giving an identity to the federation, the morale of the work force increased. This was one of the main reason for the success story. The shabby stores were rearranged and painted and given a new look. By introducing the net work and information technology also helped for the success story of the federation. Dr. Regi G Nair stressed these points in his speech. Sri Franklin Daniel Secretary Programs welcomed the guests and the gathering and Sri. H. Reghudas introduced the chief guest. to the audience. Sri Balamuraleekrishna Secretary General proposed vote of thanks. Sri Rajendra Prasad QMA President presided the meeting. The annual general body meeting was also conducted at 7.30 PM and the executive committee members for the year 2012-13 was elected in the presence of Returning officer Sri Devaki Nandanan.