Management PRJCT KSE

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INTRODUCTION TO THE STUDY

As a part of Bachelor of Business Administration, the researcher
conducted a management project on any of the private/public organization. As a
part of the project under prescribed syllabus of Mahatma Gandhi University,
Kottayam, the researcher had selected a well established and well reputed
company , Kerala Solvent Extractions Ltd.The researcher selects the topic A
STUDY ON DEALERS SATISFACTION WITH REFERENCE TO KS MILK IN
TRICHUR TOWN.
Every company wants to know present position of its production.
This is because with its information they can develop marketing strategies to
maintain the current position. If the companys market position is not good it has to
formulate different marketing strategies to make the brand better positioned with
this aim in mind researcher took the problem to find out the market position of K S
milk among its competitors.
The project is done at KSE dairy unit Konikkara, Marthakkara,
Thrissur district, Kerala. KSE is the number one cattle feed producing company in
India. Its product is KS milk. This project is to find out the market position of KS
milk with respect to its competitors in Thrissur district in terms of quality, brand
loyalty and promotional activities.
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RATIONALE OF THE STUDY

As a part of curriculum the researcher has done the study on
the A STUDY ON DEALERS SATISFACTION WITH REFERENCE TO KS
MILK IN TRICHUR TOWN. The need of the study is to fulfill the requirements
of the syllabus provided for the completion of Bachelor of Business Administration
course as per Mahatma Gandhi University. This marketing research tries to
highlight the threats and position of KS milk. This study is intended to the dealers
satisfaction level of KS milk. This study also analyzes the customers satisfaction
level regarding the product. The researcher has selected this topic as it is relevant to
the company and helps to understand the working condition and to improve market
position of the company.
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OBJECTIVES OF THE STUDY

1.
To find out the dealers attitude towards branded milk.
2.
To identify reason as to why customers and dealers prefer KS milk.

3. Find out the level of awareness among the dealers regarding KS milk and other
KS products.
4.
To evaluate present market condition of KS milk.
5.
To find out the expectation of dealers from the company side.
6.
To know the buying behavior and motive of customers.
7.
To find out how dealers rate the promotional activities.
8.
To identify the competitors of KS milk in Trissur town
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HYPOTHESIS
A hypothesis, generally means a mere a assumption or supposition to
be proved or disproved. But for a researcher hypothesis is a normal question that he
intends to resolve .Hypothesis is a tentative proposition formulated for empirical
testing. It is a tentative answer to a research question. It is tentative because its
validity has to start somewhere. This point of start is called hypothesis is usually
considered as the principal instrument in research. Its main function is to suggest
new experiments and observations. In fact, many experiments are carried out with
the deliberate object of testing hypotheses. Decision-makers often face situations
wherein they are interested in testing hypotheses on the basis of available
information and then take decisions on the basis of such testing. There are two types
of hypothesis they are:
i.
NULL HYPOTHESIS
The null hypothesis formally describe some aspects of statistical behavior of a
set of data .The null hypothesis is a hypothesis which the researcher tries to
disproves, reject or nullity in statistical hypothesis testing. The description is
assumed to be valid unless the actual behavior of the data contradicts this
assumption.
H0-The dealers of K.S milk are satisfied
ii. ALTERNATIVE HYPOTHESIS

Alternative hypothesis is the hypothesis that the restrictions or set of restrictions
to be tested does not hold .The alternative hypothesis which is opposite of the null
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hypothesis is stated expressing a relationship between two variables or indicating
difference between groups.
H1- The dealers of K.S milk are not satisfied
RESEARCH METHODOLOGY
Research is a diligent and systematic inquiry and investigation into the
subject inorder to discover a revise facts, theories, applications etc. Methodology is
a system of methods followed by particular discipline. Thus research methodology
is the way how we conduct our research.
Research methodology is a way to systematically solve the research
problem. It may be understood as a science of studying how research is done
scientifically. In it we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind them. It is
necessary for the researcher to know not only the research methods/techniques but
also the methodology. Researchers not only need to know how to develop certain
indices or tests, how to calculate the mean, the mode, the median or the standard
deviation or chi-square, how to apply particular research techniques, but they also
need to know which of these methods or techniques, are relevant and which are not,
and what would they mean and indicate and why. Researchers also need to
understand the assumptions underlying various techniques and they need to know
the criteria by which they can decide that certain techniques and procedures will be
applicable to certain problems and others will not. All this means that it is necessary
for the researcher to design his methodology for his problem as the same may differ
from problem to problem. For example, an architect, who designs a building, has to
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consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on
what basis he selects particular size, number and location of doors, windows and
ventilators, uses particular materials and not others and the like. Similarly, in
research the scientist has to expose the research decisions to evaluation before they
are implemented. He has to specify very clearly and precisely what decisions he
selects and why he selects them so that they can be evaluated by others also.
RESEARCH DESIGN
The research design is a conceptual framework within which the researcher
is to be conducted .Rather it is the skeleton of the research work to be undertaken,
which can be modified to suit the nature and procedure of the research. A research
design is defined as the orderly arrangement of elements and conditions for the
collection and analysis of data in a manner that aims to combine relevance to the
research objective with economy in procedure. Rather it is a plan of action or blue
print for the collection and analysis of data. A suitable research design shall be
selected for the study in hand based on the nature and purpose of the study.
There are many types of research design they are:
i.
ii.
iii.
iv.
Exploratory research design.

Descriptive research design.
Diagnostic research design.
Experimental research design.
The researcher here selects descriptive research design.
DESCRITIVE RESEARCH DESIGN
A descriptive research design is concerned with the detail description of
certain functional variables and characteristics of a problem situation since it is
concerned with the explanation of the problem situation and allied variables its
rather called explanatory research .Descriptive research should define the who ,
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what , where , why and how aspects of the research. Descriptive research includes
surveys and fact-finding enquiries of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present .The
main characteristic of this method is that the researcher has no control over the
variables; he can only report what has happened or what is happening. The methods
of research utilized in descriptive research are survey methods of all kinds,
including comparative and co relational methods.
POPULATION
In any statistical investigation we are interested in studying the various
characteristics of individuals or item of a particular group. This group of individuals
study is known as population or universe .Therefore universe is the aggregate of all
the units to be studied in any field of enquiry. In statistics, Population is the
aggregate of objects, animates or in animates under study in any statistical
investigation. It is thus a collection of individuals or of the values or of the result
of operations which can be numerically specified. Thus, all items in any field of
inquiry constitute a Universe or Population.
The total number of dealers of K.S milk in Trissur town is 130.
CENSUS
A complete enumeration of all items in the population is known as a census
inquiry. It can be presumed that in such an inquiry, when all items are covered, no
element of chance is left and highest accuracy is obtained. But in practice this may
not be true. Even the slightest element of bias in such an inquiry will get larger and
larger as the number of observation increases. Moreover, there is no way of
checking the element of bias or its extent except through a resurvey or use of
sample checks. Data obtained from each and every unit of population is likely to be
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more accurate and reliable. The possibility of bias and prejudice is minimum. It is
intended to collect information from all the 130 dealers in Trissur town.
DATA COLLECTION METHOD

The task of data collection begins after a research problem has been defined
and research design/ plan chalked out. While deciding about the method of data
collection to be used for the study, the researcher should keep in mind two types of
data viz., primary and secondary .Thus the researcher have provided with two types
of data collection namely primary and secondary.
i. PRIMARY DATA COLLECTION
Primary research involves the collection of data that does not already exist,
which is research to collect original data. Primary research is often undertaken after
the researcher has gained some insight into the issue by collecting secondary data.
Primary data sources are the sources by which data are collected originally for a
certain purpose. The data collected from primary sources are called primary data.
Methods used for the collection of Primary data can be:
Observation method.
Interview method.
Through schedules.
Questionnaire method.
The researcher selects questionnaire as a tool for collecting data.
ii. SECONDARY DATA COLLECTION

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Secondary data is the data collected by someone other than the user. Common
sources of secondary data for social science include censuses, surveys,
organizational records and data collected through qualitative methodologies or
qualitative research. The secondary data collection must need much care for the
making of minute and scrutiny.
Secondary Data is the data or information that is already available. This data is
collected by a person or organization other than the use of the data. Advantages of
secondary data are that it is cheap and inexpensive. It is easily accessible. It is
already available. It saves time and efforts. It is unobtrusive. It avoids data
collection problems and it provides a basis for comparison.
Secondary Data can be collected from various sources like:
Reference books
Magazines
Websites
Already published reports
Newspapers
Journals and publications
Research papers
The researcher here selects reference books, already published reports and websites
for collecting data.
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VARIABLES UNDER STUDY

Two types of variables under study are dependent and independent variables.
i. DEPENDENT VARIABLE
Dependent variable, those are having an impact in tune with any change in
the other independent variables. A dependent variable is what you measure in the
experiment and what is affected during the experiment. It is called dependent
because it depends on the independent variable. In a scientific experiment, you
cannot have a dependent variable without an independent variable. Dependent
variables can be defined as the variables under study which are changeable with a
variation in the independent variables.
The dependent variable in this study is: A study on dealers satisfaction with
reference to K.S milk in Trissur town.
ii. INDEPENDENT VARIABLE
Independent variable, those which dont vary or get influenced by any change
in other variables. Manipulating the variables is the main tool for experimentation.
Independent variables are those variables which depend upon the facts which help
them. It can be changed as required, and its values do not represent a problem
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requiring explanation in an analysis. These variables do not vary or are influenced
by any change in other variable.
The independent variables of this study are:
Quantity
Quality
Price
Customer satisfaction
Commission
Delivery from the side of company
Seasonal offers
Brand preference
Product knowledge
Dealers meeting
Range of products
Nature of product
Packages
Competitors price and commission
Credit sales
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DURATION OF STUDY
The duration of the project study was a period of 45 days.
LIMITATIONS OF THE STUDY

Response received could be incorrect and misleading.
Absence of respondents at their premises was a major constraint.
The scope of survey was limited to Trissur town.
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MARKETING MIX
Marketing mix is the combination of the elements of marketing and what
roles each element plays in promoting your products and services and delivering
those products and services to your customers.
Elements of the Marketing Mix

The elements of the marketing mix are also referred to as the 5 P's of
marketing. For years marketers referred to the 4 P's of marketing. Only recently
has a 5th P been added. Whether you subscribe to the theory that there are four P's
or five P's of marketing, this is essentially referred to as your "marketing mix".
The 4 P's of the Marketing Mix
The original 4 P's of marketing (although they have been renamed a bit over
the years) that were the elements of marketing mix is:
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Product The products or services offered to your customer: Their physical
attributes what they do, how they differ from your competitors and what benefits
they provide.
Price How you price your product or service so that your price remains
competitive but allows you to make a good profit.
Place (Also referred to as Distribution) Where your business sells its products
or services and how it gets those products or services to your customers.
Promotion The methods used to communicate the features and benefits of your
products or services to your target customers
CHANNELS OF DISTRIBUTION
A channel of distribution or trade channel is defined as the path or route
along which goods move from producers or manufacturers to ultimate consumers or
industrial users. In other words, it is a distribution network through which producer
puts his products in the market and passes it to the actual users. This channel
consists of: - producers, consumers or users and the various middlemen like
wholesalers, selling agents and retailers (dealers) who intervene between the
producers and consumers. Therefore, the channel serves to bridge the gap between
the point of production and the point of consumption thereby creating time, place
and possession utilities.
A channel of distribution consists of three types of flows:
Downward flow of goods from producers to consumers
Upward flow of cash payments for goods from consumers to producers

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Flow of marketing information in both downward and upward direction i.e.

Flow of information on new products, new uses of existing products, etc from
producers to consumers. And flow of information in the form of feedback on the
wants, suggestions, complaints, etc from consumers/users to producers.
An entrepreneur has a number of alternative channels available to him for
distributing his products. These channels vary in the number and types of
middlemen involved. Some channels are short and directly link producers with
customers. Whereas other channels are long and indirectly link the two through one
or
more
middlemen.
These channels of distribution are broadly divided into four types: Producer-Customer: - This is the simplest and shortest channel in which no
middlemen is involved and producers directly sell their products to the
consumers. It is fast and economical channel of distribution. Under it, the
producer or entrepreneur performs all the marketing activities himself and has
full control over distribution. A producer may sell directly to consumers through
door-to-door salesmen, direct mail or through his own retail stores. Big firms
adopt this channel to cut distribution costs and to sell industrial products of high
value. Small producers and producers of perishable commodities also sell
directly to local consumers.
Producer-Retailer-Customer: - This channel of distribution involves only one

middleman called 'retailer'. Under it, the producer sells his product to big
retailers (or retailers who buy goods in large quantities) who in turn sell to the
ultimate consumers. This channel relieves the manufacturer from burden of
selling the goods himself and at the same time gives him control over the
process of distribution. This is often suited for distribution of consumer durables
and products of high value.
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Producer-Wholesaler-Retailer-Customer: - This is the most common and

traditional channel of distribution. Under it, two middlemen i.e. wholesalers and
retailers are involved. Here, the producer sells his product to wholesalers, who in
turn sell it to retailers. And retailers finally sell the product to the ultimate
consumers. This channel is suitable for the producers having limited finance,
narrow product line and who needed expert services and promotional support of
wholesalers. This is mostly used for the products with widely scattered market.
Producer-Agent-Wholesaler-Retailer-Customer: - This is the longest channel

of distribution in which three middlemen are involved. This is used when the
producer wants to be fully relieved of the problem of distribution and thus hands
over his entire output to the selling agents. The agents distribute the product
among a few wholesalers. Each wholesaler distributes the product among a
number of retailers who finally sell it to the ultimate consumers. This channel is
suitable for wider distribution of various industrial products
DEALER
A dealer facilitates market liquidity by intermediating between
transistors to whom time is important in exchange for charging buyers a higher
price than he pays sellers. A value-based investor may also fulfill this function, but
at a larger bid-asked spread than that imposed by the dealer. Relative to the valuebased investor, the dealer has limited capital, hence limited ability to absorb risk; he
will thus limit the position-long or short-he is willing to take. When the dealer's
position reaches a maximum, he will lay off to the only other transactor motivated
by price-the value-based investor. The dealer's price is tied to the value-based
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investor's price at these layoff points. As the value-based investor shifts his prices in
response to new information, the dealer's interior prices shift along with his layoff
prices. An investor should realize that, when he trades with the crowd, he is trading
at the value-based investor's spread, which may be many times the size of the
explicit dealer's spread. More generally, the actions of the crowd--whether it is
buying or selling, and in what volume will determine whether the price of trading
quickly is high or low, hence whether the value of his information justifies trading.
FUNCTIONS OF DEALERS
Creating Value
The value of a product to a consumer, called its utility, is a measure of how much
it improves the person's life. There are four types of utilities: Time, place, form and
possession. Intermediaries add to time utility by making products accessible when
people want them. They create place utility by having goods available where
consumers want to shop. Possession utility involves helping people take title to an
item, like a car dealer arranging financing. Form utility is when an intermediary
makes products more usable or convenient. For example, soda bottlers transform
flavoured syrups into soft drinks.
Transactional Functions
The transactional functions of intermediaries involve buying, selling and risk
taking. Wholesalers or agents buy products from manufacturers in sufficient
quantities to stock the shelves of multiple stores. They promote the goods to build
sales, using personal salespeople and various marketing communication devices
aimed at retailers. While buying and selling, all intermediaries take a measure of
risk. That is because the inventory they stock in their warehouses can lose
competitive appeal or become obsolete before it is sold.
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Logistical Functions
Most mass market products must be manufactured in large quantities to achieve
economies of scale, but few producers can afford to store their inventories or ship
small numbers of items to individual consumers. Instead, they rely on
intermediaries to perform these and other logistical functions. For example, frozen
food manufacturers ship to supermarkets, not direct to consumers' homes. Book
publishers rarely sell to bookstores; they do business primarily with book
wholesalers, who assemble large assortments of new releases and then distribute
them in accordance with reader demand.
Facilitating Functions
Facilitating functions include various activities performed by intermediaries to
make exchanges easier for consumers. This often involves collecting and
disseminating information. For example, brokers who buy fresh beef or pork from
ranchers inspect and grade the meat to enable buyers to accurately compare
alternatives. Fruit and vegetable wholesalers sort and certify the freshness of
produce. Another facilitating function is the provision of credit and other financial
services. This is especially important among retailers, who commonly issue credit
cards and offer layaway programs.
BENEFITS OF INTERMEDIARIES
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If selling directly from the manufacturer to the consumer was always the
most efficient methodology for doing business, the need for channels of distribution
would be obviated. Intermediaries, however, provide several benefits to both
manufacturers and consumers: improved efficiency, a better assortment of products,
reutilisation of transactions, and easier searching for goods as well as customers.
The improved efficiency that results from adding intermediaries in the
channels of distribution can easily be grasped with the help of a few examples. Take
five manufacturers and 20 retailers, for instance. If each manufacturer sells directly
to each retailer, there are 100 contact linens line from each manufacturer to each
retailer. The complexity of this distribution arrangement can be reduced by adding
wholesalers as intermediaries between manufacturers and retailers. If a single
wholesaler serves as the intermediaries, the number of contacts is reduced from 100
to 25: five contact lines between the manufacturers and the wholesaler, and 20
contact lines between the wholesaler and the retailers. Reducing the number of
necessary contacts brings more efficiency into the distribution system by
eliminating duplicate efforts in ordering, processing, shipping, etc.
In terms of efficiency there is an effect of diminishing returns as more
intermediaries are added to the channels of distribution. If, in the example above,
there were three wholesalers instead of only one, the number of essential contacts
increases to 75: 15 contacts between five manufacturers and three wholesalers, plus
60 contacts between three wholesalers and 20 retailers. Of course this example
assumes that each retailer would order from each wholesaler and that each
manufacturer would supply each wholesaler. In fact geographic and other
constraints typically eliminate some lines of contact, making the channels of
distribution more efficient.
Intermediaries provide a second benefit by bridging the gap between the
assortment of goods and services generated by producers and those in demand from
consumers. Manufacturers typically produce large quantities of a few similar
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products, while consumers want small quantities of many different products. In
order to smooth the flow of goods and services, intermediaries perform such
functions as sorting, accumulation, allocation, and creating assortments. In sorting,
intermediaries take a supply of different items and sort them into similar groupings,
as exemplified by graded agricultural products. Accumulation means that
intermediaries bring together items from a number of different sources to create a
larger supply for their customers. Intermediaries allocate products by breaking
down a homogeneous supply into smaller units for resale. Finally, they build up an
assortment of products to give their customers a wider selection.
A third benefit provided by intermediaries is that they help reduce the cost
of distribution by making transactions routine. Exchange relationships can be
standardized in terms of lot size, frequency of delivery and payment, and
communications. Seller and buyer no longer have to bargain over every transaction.
As transactions become more routine, the costs associated with those transactions
are reduced.
The use of intermediaries also aids the search processes of both buyers and
sellers. Producers are searching to determine their customers' needs, while
customers are searching for certain products and services. A degree of uncertainty
in both search processes can be reduced by using channels of distribution. For
example, consumers are more likely to find what they are looking for when they
shop at wholesale or retail institutions organized by separate lines of trade, such as
grocery, hardware, and clothing stores. In addition, producers can make some of
their commonly used products more widely available by placing them in many
different retail outlets, so that consumers are more likely to find them at the right
time.
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DAIRY INDUSTRY
The dairy industry is recognized as one of the largest and most important of
food industries. The dairy industry exists for one purpose to provide, at a
reasonable cost, milk and milk products that satisfy the consumers needs and fulfils
his nutritional requirements. The industry means different things to the different
participant- the producers, the dairy handlers and consumers.
The word Dairy was derived from the Middle English word, deirie
meaning day or maid servant worked. Dairy now connotes a wide range of activities
starting with the production of milk in the farm to the point it reaches the consumer
in the form of liquid together by a diverse field of disciplines such as dairy science,
animal husbandry, crop husbandry, and dairy engineering. Management science is
applicable in each of these disciplines and integrates them, to achieve the objective
of providing milk to the consumer by making an optimum use of Earths renewable
resources for production of milk.
The importance of dairying stems from the role of milk in human nutrition.
Food serves two major functions in human nutrition, to provide energy and to
furnish the elements essential for growth and replacement of body tissues. All the
three main forms of food-carbo-hydrates, fats and proteins provide the energy, but
only proteins can supply nitrogen and amino-acids essential for growth and
replacement of tissues. In planning for human nutrition, there are two possible
stages the first has a limited objective of holding back hunger while the second is
achieved by providing a balanced diet which includes ascertain quantity of animal
protein to include the essential amino-acids in the diet. The developed countries
have achieved the second stage. The developed countries need to plan their
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agriculture for providing adequate balanced nutrition from the available resources
within the country. The relevance of the dairy industry, at this stage of planning for
food, is in promoting supply of balanced diet to the population.
In terms of biological value human nutrition egg protein is the most
important, followed by the protein from milk. Egg or milk protein can furnish all
the amino-acids essential for normal growth and healthy life processes, provided
that they are consumed inadequate amounts. Fish, meat and poultry products are
also high in the scale of biological value. Vegetable protein from wheat, maize, rice,
beans and nuts are of low biological value, particularly when it represents the only
source of protein. The essential amino-acids are not provided in sufficient
quantities. In many of the developing countries, more so in India, milk may form
the only source of animal protein. One quart (approximately on litre) of milk
furnishes approximately all the fat, calcium, phosphorus and riboflavin; half the
protein; one third of the vitamin A, acetic acid and thiamin; one fourth the calories
and with the expectation of iron, copper, magnesium and manganese, all the
minerals needed daily considerable amounts of nicotinic and chorine are also
provided. Milk is the secretion of mammary glands, produced primarily for
feeding the young. All mammals produce milk. However, milk is obtained for
commercial consumption purposes from domestic animals, particularly the cow.
The milk of different species essentially contains the same constituents. The
composition may, however vary from species to species in minor proposition. The
variation in milk composition is likely to occur within the species due to a number
of factors like breed, age, stage of lactation, individual variation, seasonal variation,
variation from lactation to lactation, interval between milking, first and last milk,
fitness of the animal and feed provided to the animal. Milk and cream are the main
products of dairying. The other products are derived from these principle products.
The industry faced with some general characteristics peculiar to dairying. The
production of milk is seasonal mainly because of the nature and purpose of milk
production. Milk is produced for the young calf and is, therefore, depended on the
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calving season. However, the demand for milk and milk products remain the same
throughout the year. Milk is bulky and highly perishable. The milk handlers,
therefore, have to process the milk and store it under refrigeration or reduce the
bulk by drying before storage.
Agriculture and allied industries account for nearly half the gross
national income of India, one fourth of which is from dairy. The national economy
of certain European countries like Denmark and Sweden are depended almost
entirely on animal husbandry of which dairying is a major industry. In the US, dairy
industry alone contributes to one fifth of the total agricultural income. Moreover,
the consumer spends a fifth of his food expenses on milk and milk and milk
products. Apart from the contribution, dairying needs to the economy and
nutritional status of any country, the industry provides employments to thousands of
people. In the US, over a quarter million people were employed by the dairy
industry in 2000. In the tropics, where dairying is less developed, millions earn their
income either partly or wholly from the dairy industry.
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INDIAN DAIRY INDUSTRY

INTRODUCTION
India is the highest milk producer in the entire globe. India is well
known as the Oyster of the global dairy industry, with opportunities galore for the
entrepreneurs globally. It might be dream for any nation in the world to capitalize
on the largest and fastest growing milk and milk products' market. The dairy
industry in India has been witnessing rapid growth with liberalization. As the
economy provides good opportunities for MNCs and foreign investors to release the
full potential of this industry. The main objective of the Indian Dairy Industry is to
manage the national resources in a manner to enhance milk production and upgrade
milk processing using innovative technologies.
The crossbred technology in the Indian Dairy Industry has further

augmented with the viability of the dairy units by increasing the milk production
per animal. Then subsequently milk production has also increased at an exponential
rate while the benefits of an increase in milk production also reached the consumers
from a relatively lower increase in the price of milk. The favorable price
environment for milk producers for the Dairy Industry in India however appeared to
have weakened during the 90's, a decline in the real price of milk being noticed
after the year 1992. And then slowly regained it is glory after 1992 to till now.
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In India dairying from very much earlier is regarded as an instrument for
social and economic development. The countrys milk supply comes from millions
of small producers, who are dispersed throughout the rural areas. All these farmers
maintain an average herd of one or two milch animals, comprising cows and/or
buffaloes. Mostly ample labour and a small land base encourage farmers to practice
dairying as an occupation subsidiary to agriculture. As income from crop
production is seasonal instead dairying provides a stable which is a year-round
income and also an important economic incentive for the small farmer.
HISTORY OF INDIAN DAIRY INDUSTRY
India had tremendous milk production in 40 years and has become the
worlds largest milk-producing nation with a gross output of 84.6 million tons in
2001. The Indian Dairy Industry has achieved this strength of a producer-owned
and professionally-managed cooperative system, despite the facts that a majority of
dairy farmers are illiterate and run small, marginal operations and for many farmers,
selling milk is their sole source of income. More than 10 million dairy farmers
belong to 96,000 local dairy cooperatives, who sell their products to one of 170
milk producers cooperative unions who in turn are supported by 15 state
cooperative milk marketing federations.
In India dairy business has been practiced as rural cottage industry over
the years. Semi-commercial dairy started with the establishment of military dairy
farms and co-operative milk unions throughout the country towards the end of the
19th century. Since Independence this Industry has made rapid progress. A large
number of modern milk and milk product factories have since been established. The
organized dairies in India have been successfully engaged in the routine commercial
production of pasteurized bottled milk for Indian dairy products.
The growth of Indian Dairy Industry during the last three decades has been
impressive, at more than 5% per annum; and in the 90's the country has emerged as
the largest producer of milk. This is not a small achievement when we consider the
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fact that dairying in India is largely stringent that farmers in general keep dairy
animals in proportion to their free crop and also are available for family labor with
little or no purchased inputs and a minimum of marketed outputs. The existence of
restrictive trade policy milk in the dairy Industry and the emergence of Amul type
cooperatives have changed the dairy farming practices in the country. Farmers have
gained the favourable price for their milk and for their production which was
essentially a self-reliant one is which is now being transformed into a commercial
proposition.
In India Milk production is dominated by small and marginal land-holding
farmers and also by landless labourers who in aggregate own 70% of the national
milch animal herd. And as the crop production on 78% of the agricultural land still
depends on rain, which is prone to both drought and floods, rendering agricultural
income is very much uncertain for most of the farmers. Dairying, as a subsidiary
source of income and occupation, is real relief to most of the farmers in the society.
Usually one or two milch animals enable the farmers to generate sufficient income
to break the vicious subsistence agricultural-debt cycle.
The Operation Flood which is the successful Indian dairy development
programmed has analyzed that how food aid can be utilized as an investment in
building the type of institutional infrastructure that can bring about national dairy
development. Programmes like this, with similar policy orientations, may prove to
be appropriate to dairy development in in India.
India in the early 1950's was commercially importing around 55000 tonnes of
milk powder annually to meet the urban milk demand. Most of the significant
developments in dairying have taken place in India in this century only.
PRESENT STATUS OF INDIAN DAIRY INDUSTRY
The Indian Dairy Industry engages in the production and processing of milk &
cream. This industry is involved in the manufacture of various dairy products like
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Management
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cheese, curd, yoghurt etc. The Indian Dairy Industry specializes in the procurement,
production, processing, storage and distribution of dairy products. India as nation
stands first in its share of dairy production in the international scenario. The
industry contributes about Rs 1,15,970 to the national economy.
Indian Dairy Industry is the largest milk producer all over the world, around
100 million MTIndian Dairy Industries value of output amounted to Rs. 1179
billion in 2004-05 which approximately equals combined output of paddy and
wheat. With 1/5th of the worlds bovine population. In India the Milch animals
constitutes 45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows
Intensive Dairy Development Programmed (IDDP): The Schemes, modified
under this programmes are on the basis of the recommendation of the evaluation
studies which were launched during Eighth Plan period and is being continued
through out the Eleventh Plan with an outlay of Rs. 32.49 core for 2009-10.
Strengthening Infrastructure for Quality and Clean Milk Production
(CMP): this is a centrally sponsored scheme which was launched in October 2003,
which had the main objective of improving the quality of raw milk produced at the
every village level in the India.
Dairy Venture Capital Fund- this is introduced in the Tenth Fiver Year Plan to
bring about structural changes in unorganized sector, which would measure like
milk processing at village level, marketing of pasteurized milk in a cost effective
manner, quality or the up gradation of traditional technology to handle commercial
scale using modern equipments and management skills.
FURURE SCOPE OF INDIAN DAIRY INDUSTRY
The value of the Indian dairy industry is expected to touch Rs 5 lakh crore by
2015, with milk output pegged at 190 million tonnes at the end of the period
According to an Associated Chambers of Commerce and Industry of India
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(ASSOCHAM) study, the Indian dairy industry is growing at the rate of 10 per cent
per annum. "Milk production is likely to reach about 190 million tonnes in 2015
from current level of about 123 million tonnes. India - the world's largest milk
producer -- accounts for around 20 per cent of global milk production, with most of
it consumed domestically. In India, about 60 per cent of milk is consumed in liquid
form, while the remaining 40 per cent is used in the form of butter, clarified butter
(desi ghee), cheese, curd, paneer, ice cream, dairy whiteners and traditional sweets.
An upward spiral in prices, the lack of proper infrastructure like cold storages and
absence of a transparent milk pricing system are affecting retail consumption of
milk and leading to escalating milk prices in the domestic market. Andhra Pradesh,
Bihar, Haryana, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar
Pradesh are the leading milk producing states in the country.
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DAIRY INDUSTRY IN KERALA

Milk is an unavoidable element in the life of Keralites. In olden days, Kerala
was far ahead in production of milk. But due to several reasons the production of
milk is defined. Milk producers in Kerala are in the grip of a major crisis following
the flow of large quantity of milk from outside the State at lower prices. According
to a survey, the state produces 20.61 lakhs tons of milk per annum. The production,
according to market sources, is insufficient to meet the demand of the states
population. As a result, Kerala has become a major market for milk produced in
neighboring States. Supplies from TamilNadu meet around 60% of the daily
demand milk.
Rapid increase in milk processing and marketing companies has resulted in
tough competition leading to cut in prices. Thus, availability of milk at low prices
from other States has created a crisis for the milk producers in the State farmers
said. A dairy expert told Business Line that the only solution to the crisis was
production of good and pure milk by which the Kerala milk producers could
compete and recapture the market Dairy Development Board was created in 1962.
The livestock Development and Milk Marketing Board for milk procurement and
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marketing was set up, followed by the Kerala Co-operative Milk Marketing
Federation. But all these have failed to save the dairy sector and the farmers.
One of the major problems being encountered is the non-availability of
modern facilities to process and stock the entire milk produced during the peak
season (in therainy months). As a result, during these months, not only are
restriction imposed on the quantity procured but there is a cut in the prices by the
co-operatives. The State has over 2,972 milk marketing their functioning
unfavourable to the development of the sector. When the societies run by NGOs
procure milk at Rs.10 per litre from the farmers by providing subsidy for cattle
feeds, in Kerala they were being discouraged with taxes. Kerala requires 68.5 lakh
tons of cattle fodder, of which they only 40 tons are available within the State. Nonavailability of land and improved variety of fodder grass has become major
impediments. The estimated dairy consumption of milk in Kerala is 35.53 lakhs
liters including the institutional consumption. The average daily production of milk
in Kerala is estimated to be 32.72 lakhs liters per day. Hence there is a shortage of
2. 81 lakhs of milk per day .
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COMPANY PROFILE
HISTORY OF KSE LTD
KSE LTD is a public limited company is an incorporated with
substantial capital participation by the Kerala state industrial development
corporation limited. Trivandrum and though loans from industrial finance
corporation of India, New Delhi. The company is engaged in the solvent extraction
of ground nut cake and rice bran also. The oil thus obtained is moved for industrial
purpose in to the market. In addition is full fledged live stock feed division
engaged in the production of ready mixed cattle feed.
The company was registered in the year 1963. In 1973 the solvent
extraction plant was started with processing capacity of 60 metric tones of cake per
day. in1976 the
company stated production of ready mixed feed with the
production capacity of 50 metric tone per day and in 1983 the company increased
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Management
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the production of cattle feed to 120 tm per day which has recently been increased to
180 tm per day by the construction of a daily automated computerized plant . In
1988 company started a solvent extraction and cattle feed plat at Swaminathapuram
near Palani, with production capacity of 150 mts of cattle feed per day and
processing capacity of 100 120 mts of expeller extracted deoiled cake.
In 1972, the company laser new cattle feed plant at Pothannur near
Coimbatore with a production capacity of 80 mts per day and in 1995 company has
leased a plan in my sore with the capacity of 50 mts per day. In 1996 the company
started a new plant Vedagiry at Kottayam in Kerala with the capacity of 240 mts per
day. Kerala solvent extraction limited come out with a premium public issue on
march 1993 which was over subscribed , through the stock markets are showing a
low trend , now Kerala solvents share is still quoted at Rs140 per share whose face
value is Rs 10 this reflect the confidents of investing in the company .
It was in 1963 that Kerala solvent extraction limited now known as
KSE limited entered the solvent extraction industry setting up the very first solvent
extraction plant in the largest producer of copra in the country , as much as 80 %
of it , Kerala the infrastructure to exploit the potential of its abundant produce .
While the oil industry in other parts of the country were thriving.
The Dr. Lokhanathan committee, set up to feasibility of starting new
industries in Kerala, recommended the establishment of 3 solvent extracting plants.
And one of them, in Thrissur district. The oil mill owners in hand around
Irinjalakuda , who were thinking in similar lines saw the opportunity and look the
initiative to establish a solvent extraction unit. The solvent extraction plant went on
the stream in 1972 and in 1976 a new plant was set up to manufacture ready mixed
cattle feed, which was a pioneering step. Since then there, was no looking back. The
last 3 decades have seen KSE emerging as a leader in solvent extraction and ready
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mixed cattle feed in the county and though these years of consideration and
diversification KSE has gate a niche for itself.
Today KSE commands the resources, expertise and infrastructure to
manufacture a range of live stock feed in high volumes, coconut oil from coconut
cake and refined edible oil. Since the early KSE hand endeavored to supply its
products to customers through extensive net work of dealer and retailers which
from a dedicated force behind the success of KSE. It is matter of pride that KSE is
house hold name today .The KSE is a public limited company having around 6000
share holders. The board of directors consisting 10 directors in the executive
committee responsible for the management the articles of association of the
employers the board of directors of directors to appoint one as the chief managing
director and one whole time director.
The Chief Managing Director, Executive Director and Whole
Time Director are the smooth running of day to day affairs of the company.
Strategic decision of the company are taken by an executive body consisting of the
Managing Director , Executive Director ,Whole Time Director , General Manager ,
Finance Manager , Nutritionist , Marketing Manager , Plant Manager and Purchase
Manager . These executives are professional with vast experience in their areas of
specialization.
ESTABLISHMENT
Kerala Solvent extraction limited now known as KSE
limited was established in 1963 , by a hand full of coconut millers in an around
Irinjalakuda . With a vision to over comes the crisis of the coconut oil industry.
Initially started as a solvent extraction plant the company now produces 750 800
MTs of coconut cake a day with a four cattle feed production units and two solvent
extraction plants. The company has diversified in to 9 the area of dairying by
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establishing two dairy plants for the production of pasteurized milk and milk
products. It has obtained ISO recognition for its commitment to quality and
professionalism.
DAIRY DIVISION
KSE started operation of its dairy division on 22 January
2000.The idea of diversification into dairy industry was the outcome of the desire
for forward integration of the cattle feed business of KSE ltd, the company market a
wide range of dairy products in the market. Its main area of operation is Thrissur
and also some parts of Ernakulam and Malapuram.The products are toned
homogenized milk ,ghee, curd, sambharam and ice cream.KSE has milk processing
units in Thalayuth (Tamilnadu) and Konikkara in Thrissur have processing capacity
of 20000 liters and 30000 liters per day. The brand name of milk and milk products
is KS and ice cream is vesta.
PRESENT STATUS OF THE COMPANY

The pioneering plant of KSE at Irinjalakuda in many ways. It was
first solvent extraction plant in Kerala. It was first manor factory in the locality,
spread over 15acres. It was here set up its first cattle feed plant. The embodied the
spirit of enterprise of group of committed people, who wanted to user in an era
of modernity into a traditional society and change the industrial landscape of the
state. Naturally, today the Irinjalakuda plant enjoys a flagship status and commands
an edge on infrastructural strength. Taking great in technological development,
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the process of computerization in plant and office was initiated way back in
1987.Research and development plays an important role in the activities of KSE,
The central R & D unit is located here. The plant houses a modern laboratory. The
quality control cell here leads and guides other units and formulates stringent
standards. The chief Nutritionist and Assistant manager quality controls are
also based here. A proud symbol of growth, the Irinjalakuda unit is an inspiring
force for the entire KSE family.
KSE Limited an ISO 9001-2000 certified company is having an annual
sales turnover Rs. 371 crores ; Irinjalakuda branch is the head office of the
company. Only the cattle feed production is running in Irinjalakuda plant with
a production capacity of 210 tones per day.
In Swaminathapuram unit they have a model dairy farm with highly
yielding animals maintained for conducting feeding trials and other experiments .In
Konikkara unit which is main dairy division of KSE has made their products like
K.S. milk, K.S. ghee, K.S. curd, and butter milk has already become popular in
Thrissur, Ernakulum, Malappuram, and Alapuzha districts. In the year 2010 ice
cream production also started in Vedagiri, Kottayam to meet growing demand in
Kerala.
GROWTH CHRONICLE
Kerala solvent extraction limited was registered as a public limited
company on 25th September 1963. The company was later on renamed as KSE ltd.
and listed in stock exchange of Mumbai, Chennai, Cochin. The company started
production in 1972 with a solvent extraction capacity of 40 mts per day.
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1972
Solvent plant commences operation.
1976
Ready mixed cattle feed.
1980
Production capacity of cattle feed

increased to 60 MTs per day.
1983
A fully automatic new cattle feed

plant started operation capacity 120
MTs / per day.
1984
Thus solvent extraction plant

capacity increased to 80 MTs / day.
1987
Cattle feed plant capacity increased

to 180 MTs / day.
1988
Cattle feed plant in Tamilnadu went

into operation .capacity 100MTs
1989
A solvent unit with a capacity of 120

tones per day. Commences operation
at the Tamil Nadu plant.
1990
Introduction of KS supreme pellets

as by pass protein cattle feed in the
market.
1991
Palakad branch started.
1993
1994
:
:
KS enters export market.

Keys forte, the new feed supplement
for cattle feed introduced.
1995
Cattle feed production started at my

sore in Karnataka state Calicut
branch started vegetables oil refining
unit
commenced
operation
K.S.SUPREAM at Irinjalakuda.
1996
240 TDP cattle feed plant at

verdigris in Kottayam district started
operation.
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Management
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1997
Company renamed as KSE LTD.
1998
Fourth feed production unit at

Palakad.
1999
A modern children park &

information center has been
completed at Irinjalakuda.
2000
Company started production &

marketing of pasteurized milk and
milk products.
2001
Started operating solvent extraction

plant and oil refining plant on lease
at Kunjikod for processing coconut
cake launched jersey in 50 kegs
limited HDPE bags.
2002
Irinjalakuda unit cattle feed plant

capacity is increased to 195 MTs /
day ice cream launched.
2003
Vesta heaven ice cream par lour at

Irinjalakuda and Marthakkara started
producing cattle feed in leased plant
at Edayar.
2004
KSE bags productivity award.
2005
Cattle feed production capacity there

of to 200 MTs / day.
2006
200 TPD the solvent extraction plan

of Kinfra Park.
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2007
Install 500 TPD cattle feed plant at

Irinjalakuda unit.
2008
Ice
cream
production
unit
commissioned at Thalayuthu.
2009
CMD, CYM and others at the auto

bagging station in the 500 TPD feed
will
wearing
completion
at
Irinjalakuda.
2010
Ice cream production unit at

Vedagiri.
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OBJECTIVES OF THE COMPANY

According to memorandum of association of the company. The most important
objectives are following.
1
To produce , manufacturing , extract , refine , prepare , import , export sell and

generally to deal in oil from seeds ,oil cakes and other oil bearing material to
carry on the business of refining and hydro generation of oil and manufacturing
of by products there and trades connected there with .
To acquire, erect, construct, establish, operate and maintain oil mills, extraction
plant, ghee plant, work shop and other works.
To purchase, manufacture, sell or otherwise deal in oil cakes, washing soap,

toilet soap, hair oil tinned products etc
VISION
We shall endeavor to maintain leadership through quality
products , explore new avenue in product development are marketing , create a

stronger bond between the management , work force , dealers and customers ,
contribute to social development and rural enlistment and constantly strive for
excellence for in all spheres of our activities .
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BOARD OF DIRECTORS
Chairman and managing director
M.C Paul.
Executive director
P.K. Varghese.
Director and legal adviser
A.P.George.
Director
K.P. John.
Director
P.D.Anto.
Director
Dr K.C. Vijayaraghavan.
Director
John Francis k
Director
T.R. Ragulal.
Director
Dr. Jose Paul Thaliyath.
Director
Joseph Xavier.
Chief General Manager
Anand Menon.
Company secretary -cum -general manager :
R. Sankaranarayanan.
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CAPITAL OF THE COMPANY [Financial Highlight]

Starting capital of the company is Rs 320 lakhs. Paid up capital 217 per
share at Rs. 10. The turnover of the Company improved from Rs 454 crores to Rs
542 crores during the year ended 31st March, 2012, thus registering an increase of
19 % over that of previous. In the Dairy division, the volume of sale of ice cream
remained more or less at the same levels that of previous year at 865 kl. The profit
of Dairy division for the year 2011-12 is Rs 96.99 lakhs, which was at Rs 145.03
lakhs in the previous year. The over-all profit after tax thereby improved from Rs
449.81 lakhs in year 2010-11 to Rs 1,044.93 lakhs in the year under report.
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PRODUCTION UNIT
IRINJALAKUDA UNIT
The pioneering plan of KSE at Irinjalakuda in many ways. It
was first solvent extraction plant in Kerala. It was first manor factory in the locality,
spread over 15 artes. It was here set up its first cattle feed plant. The embodied the
spirit of enterprises of group of committed people, who wanted to user in an era of
modernity in to a traditional society and change the industrial landscape of the state.
Naturally, today the Irinjalakuda plant enjoys a flag ship status and commands an
on infrastructural strength. Taking great in technological development, the process
of computerized in plant and office was initiated way back in 1987. Research and
development plays an important role in the activities of KSE. The central R&D unit
is located here. The plant houses a modern laboratory. The quality control cell here
leads and guides other units and formulates standards. The chief nutritionist and
assistant manager quality control are also based here. A proud symbol of growth,
the Irinjalakuda unit is an inspiring force for the entire KSE family.
SWAMINATHAPURAM UNIT
The enthusiastic responses received on the introduction of KS cattle
feed certain pockets of Tamilnadu promoted KSE to start a manufacturing unit in
the state it self. This unit has a daily production capacity of 180 tones cattle feed
processing capacity of 120 tones of coconut oil cake or 80 tones of bran per day.
This major step towards reinforcing the strength of KSE. A solvent extraction plant
was started the very next year. Spread out on 22 acres of land on the banks of river
Amaravathi, this Rs.3.5 crores plant works round the clock. Keyes Forte is also
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manufactured at this unit. A model Dairy farm with high yielding animals is also
maintained in the unit for conducting feeding trials and other experiments.
VEDAGIRY UNIT
The third cattle feed manufacturing unit of KSE at Vedagiry,
is the most sophisticated and the finest in the country. This unit has the capacity to
produce cattle feed in both mash and pellet forms. With a weekly production
capacity of 1600 tones. In the year 2010 Ice Cream production was also started in
Vedagiri, Kottayam to meet the growing demand in Kerala.
PALAKAD UNIT
A recent addition to KSE family is the live stock feed plant at
Palakkad with a manufacturing capacity of 120 TPD, this plant caters
predominantly to the needs of the northern district of Kerala.
KORATTY UNIT
Company acquired land from Kinfra Small Industrial Park,
Koratty, Trichur Dist. And installed 200 TPD Solvent Extraction plant and 100 TPD
Physical Refining Plant with a capital outlay of Rs. 14 crores for refining Vegetable
oils. Solvent Extracted Coconut oil is refined in the plant and made edible.
Commissioned fractionation Plant in March 2009
KONIKKARA UNIT
KSE Limited entered in the field of milk procurement, processing and
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marketing of liquid milk and milk products in the year 2000. K.S. PAAL, K.S.
GHEE, K.S. CURD and BUTTER MILK have already become popular in Trichur
and Ernakulam, Malappuram and Alleppey Districts. Ice cream under the brand
name VESTA was launched during August, 2002 and have conquered the Kerala
Market.
THALAYUTHU UNIT DAIRY DIVISION.

In the year 2000 procurement and processing of milk also started in
Thalayuthu Unit,near Palani. In 2008 Ice Cream production started in to cater the
growing demands in Tamil Nadu.
KSE LTD
Location details
Location type
Factory / plant
Address
:
Dairy unit
Thalayathu - 624618
Tamil Nadu India
Phone 252861
Factory / plant
Palakkad unit
Palakkad 678020
Kerala India
Ph: 2536332
Factory / plant
v/679J , Muppathadam PO
Kochi 683110
Kerala India
Ph: 2541070
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Management
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Factory / plant
Nanjaioothukuli
Erode -638104
Tamilnadu India
Ph: 2500210
Registered office & factory
P.B. No. 20, solvent road, Irinjalakuda

Thrissur -680121
Kerala India
Ph: 2825476
Factory / plant
Swaminathapuram unit
Dindigul 64213
Tamil Nadu India
Ph: 252560
Factory / plant
Vedagiry unit Kurumullur

Kottayam 686632
Kerala- India
Ph: 2536829
Factory / plant
Palakkad unit, NIDA, Menonpara

Road and kanji ode
Palakkad 678621
Kerala India
Ph: 2368176
Factory / plant
Dairy unit, Konikkara

Thrissur 680320
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Management
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Kerala India
Ph: 2351501, 2358806.
Branch office
XXXlll/2837, Paropadi,
Kozhikode -673012
Kerala India
Ph: 2370056
Factory / plant
Koratty unit, Kinfra Park

Nalukettu road.
Thrissur- 680308
Kerala India
Ph: 3257651
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ORGANIZATION STRUCTURE
Board of Directors
Chairman &Managing
.
Director.
Executive Director.
Chief General Manager.
Compan
y
secretary
cumgeneral
manager
[finance]
Chief
Purchase
manager
Executive
Officer
Chief
personnel
manager
Chief
Marketing
manager
Executive
Officer
Assistant
Manager
Chief
Quality
manager
Chief
Production
manager
Chief
nutritionist
Assistant
Manager
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Management
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Officer.
Officer
Assistant Manager
Office Assistant.
Assistant Manager
Store Officer
.
Clerk
Executive Officer
Sales Executive
Office Assistant
Store Supervisor
Clerk.
Security guard
Store clerk
Office Assistant
Worker
Clerk
PRODUCT OF KSE
CATTLE FEED
K.S ORDINARY (MASH )
K.S .SUPER (MASH )
K.S. SUPREME (PELLETS )
K.S. DELUXE ( PELLET )
DE OILED CAKE JERSY
K.S REFINED SUN FLOWER OIL
DAIRY PRODUCTS
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Management
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K.S. MILK
K.S GHEE
K.S. SAMPARAM
K.S BUTTERMILK
VESTA ICE CREAM
BUSINESS OPERATIONS
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Management
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C
as
h
Raw
materia
l
Work- in
-progress
Deb
tors
Finished
goods
The organization main business operations are buying ,
production , and selling in the operation of buying including purchase of Raw
material that are needed for the production process .In the production the purchased
raw material assembled and convert into finished goods . When it become necessary
to milk larger number of cows, the cows would be brought to a shed or barn that
was set up with bails were the cows could be confined while they were milked. One
person could milk more cows this way, as many as 20 for a skilled worker.
The raw milk they receives from farmers so as to extent its
marketable life. two main type of process are employed heat treatment to ensure the
safety of milk for human consumption and to lengthen its shelf life , and
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Management
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dehydrating dairy products such as butter , hard cheese and milk powders so that
they can be stored .
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Management
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TRADE UNION PRESENCE

INTUC, CITU, BMC these 3 trade unions are presented in KSE
ltd. trade union will influence working of the company. Trade union as the power to
resist changes and this will effect normal working of the organization. Some times
this trade unions working will be favorable to the company and some time it will
make problem in the company
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Management
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MARKET SHARE
Chart Title
10%
15%
10%
KSE ltd
MILMA
SAKTHI
PENTAGON
65%
KS milk has a good market share in the

current market. The firm has some competitors. Even though the concern have good
market share by producing quality K.S with a reasonable price.
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COMPANY LIFE CYCLE:
KS milk exist in the growth stage of the company life cycle. In this stage the
sales are increased rapidly and try to expand the scale of production , and the main
feature of growth stage is rising profit and lower cost of production per unit and
competition increased in the market .
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Management
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COMPETITORS
The main competitors of K. S. MILK are given below
Milma
Sakthi
Pentagon
Amul
Vavins
PDDP
Amruth
KPS etc .
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FUTURE PROSPECTS AND GROTH PLAN

The Animal feed division is expected to perform well in year
2012-13 also, though there is high volatility in the ingredient prices. There is good
demand for the feed, and the company is unable to meet the demand in certain
pockets. KSE is adding capacities to meet the increased demand. The increase in
the price of milk by the Government of Kerala, will help to boost the cattle rearing,
and company expect a steady demand in year 2012-13. Adjustment in feed price, to
match the ingredient prices, will be possible, without losing the market share, when
the demand is steady. Good quality copra cake is available now as per requirement
from Kerala and Tamil Nadu at reasonable price and the dependency on import has
reduced to that extent. The company is trying to utilise the capacities for ice cream
in Thalayuthu and Vedagiri ice cream units and once they are able to improve the
volume, the Dairy division will generate higher revenue.
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DEPARTMENTS
MARKETING DEPARTMENT
In the department of marketing, are controlled and supervised by

marketing manager in the consultation with general manager. This marketing
department performs a lot of activities viz. pricing selection of suitable distribution
policies & some promotional policies such as price discounts, gifts etc
STRUCTURE OF MARKETING DEPARTMENT
Marketing Manager
Assistant Manager
Sales executive
Office assistant
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FINANCE DEPARTMENT
The success of every organization is good and efficient finance
department. KSE limited has a good financial department & they allocate all
purchasing efficiently that lead to improve market share & increase profit.
STUCTURE OF FINANCE DEPARTMENT
Company
secretary
-cumgeneral
manager
Assistant
Manager
Executive officer
Office assistant
Clerk
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Management
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PURCHASE DEPARTMENT
The purchase department consists of the manager, assistants

& store keeper .They is responsible for all the purchases. Including raw materials
for production, office stationeries & other maintenance related purchase in KSE
limited. The purchase department will have to convince of requirements before the
articles & procured. This policy ensures less revenue loss due to unnecessary &
unplanned purchase activities.
STRUCTURE OF PURCHASE DEPARTMENT
Purchase Manager
Executive officer
Officer
Office assistant
Clerk
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FUNCTION OF PURCHASE DEPARTMENT
What to purchase?
When to purchase?
Where to purchase?
How much to purchase?
At what price to purchase?
PRODUCTION DEPARTMENT
Production department are heard by plant supervisor. The main function of
production department in manufacturing of various types of milk products, which is
having better demand from the customers both from Kerala and national market.
PRODUCTION FUNCTION
Improving volume of production
Controlling idle time of workers
Minimizing work rates
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STRUCTURE OF PRODUCTION DEPARTMENT
Production manager
Assistant Manager
Stores officer
Store supervisor
Store clerk
Worker
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1. EXPERIENCE WITH KS MILK DEALERSHIP

TABLE NO: 1
Options
No. of respondents
percentage
Less than 5 years
5 years
15
12
5-10 years
50
38
More than 10 years
60
46
Total
130
100
FIGURE NO: 1
4%
12%
Less than 5 years

5 years
46%
5-10 years
38%
More than 10 years
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INTERPRETATION
From the above table and diagram it is clear that out of 130 dealers 46% of dealers
are having more than 10years of experience ,38% of dealers have upto 5-10years of
experience with KS milk,12% have only 5 years of experience and 4 % have upto
less than 5 years of experience .
2. OUTLETS
TABLE NO: 2
Options
No. of respondents
percentage
Milk booth
Bakery
70
54
Provisional store
30
23
General store
30
23
Total
130
100
FIGURE NO: 2
Chart Title
Milk booth
Bakery
23%
Provisional store
54%
General store
23%
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INTERPRETATION
From the above table and diagram it is clear that among the 130 dealers 54%are
bakeries ,the other 23% are provisional and general store . No milk booth is
available as dealers of KS milk.
3. REASON FOR PURCHASING FROM KS

TABLE NO: 3
Options
No. of respondents
percentage
More commission
15
12
Customers request
20
15
Good quality
35
27
All the above
60
46
Total
130
100
FIGURE NO: 3
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Chart Title
More commission
12%
Customers request
Good quality
15%
46%
All the above

27%
INTERPRETATION
The above table and diagram shows the reason for selling KS milk .Majority of
dealers said that they sell it due to 3 reasons they are more commission, good
quality and customers request. The next 27% of dealers told that they sell KS milk
due to the good quality of the product.
4. OPINION ABOUT THE COMMISSION FROM THE
COMPANY
TABLE NO: 4
Options
No. of respondents
percentage
Highly satisfied
15
12
Satisfied
115
88
Dissatisfied
Highly dissatisfied
Total
130
100
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FIGURE NO: 4
Chart Title
Highly satisfied
12%
Satisfied
Dissatisfied
Highly dissatisfied
88%
INTERPRETATION
From the above table and diagram it is clear that majority of dealers that is 88% are
just satisfied with the commission provided by the company and only 12% of
dealers are highly satisfied with the commission provided by the company .The
commission provided by the company is 70ps for 1 packet of milk.
5. CUSTOMERS SATISFACTION
TABLE NO: 5
Options
No. of respondents
percentage
Yes
130
100
No
Total
130
100
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FIGURE NO: 5
Chart Title
Options
Yes
No
INTERPRETATION
From the above table and diagram it is clear that the customers of KS milk are
highly satisfied with the product. All the 130 dealers in Trissur town said that
customers buy this product due to its quality and there is a high sales movement for
KS milk compared to other brands of milk.
6. OTHER BRANDS THAT DEALERS DEAL

TABLE NO:6
Options
No. of respondents
percentage
Milma
54
41
PDDP
10
Both
25
19
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others
41
32
Total
130
100
FIGURE NO: 6
Milma
32%
42%
PDDP
Both
19%
others
8%
INTERPRETATION
The above table and diagram it is clear that majority of dealers deal with Milma
because beside KS milk Milma is the another brand of milk that high sales
movement in the market. PDDP does not have that much sales movement so only
8% of dealers deal with PDDP.
7. OPINION ABOUT THE PRICE OF KS MILK

TABLE NO: 7
Options
No. of respondents
percentage
Very good
46
35
Good
53
41
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Satisfactory
31
24
Poor
Total
130
100
FIGURE NO: 7
24%
Very good
35%
Good
Satisfactory
Poor
41%
INTERPRETATION
The above table and diagram shows the idea of dealers about the price of KS milk.
Among the 130 dealers 41%of dealers reported that the price of the product is good
they said that because of the quality of the product .35% of dealers said that the
price of the product is low so that there is no problem to deal with the product.
8. SALE OF MILK PER DAY

TABLE NO: 8
Options
No. of respondents
percentage
20 packets
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20-40packets
40-60packets
24
18
More than 60 packets
101
78
Total
130
100
FIGURE NO: 8
4%
20 packets
18%
20-40packets
40-60packets
More than 60
packets
78%
INTERPRETATION
The above table and diagram depicts the sale of the product per day. Among the 130
dealers 78% of dealers sell more than 60 packets per day that may be upto 200 or
500 packets .
9. REASON TO BE A DEALER OF KS MILK

TABLE NO:9
Options
No. of respondents
percentage
70
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Promotional scheme
Quality
49
38
Companys policy
37
28
margin
44
34
Total
130
100
FIGURE NO: 9
34%
38%
Promotional scheme
Quality
Companys policy
margin
28%
INTERPRETATION
The above table and diagram is talking about the main factors enabling the dealers
to be the KS milk dealers ,most of the dealers prefer on quality to be first factor.
About38% of the dealers are dealing KS milk products for its quality and 28% are
for company policies. The rest 34 % of the dealers voted for margin. Though the
dealers prefer quality and margin as a main factor.
10. OPINION ABOUT CREDIT PERIOD

TABLE NO: 10
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Options
No. of respondents
percentage
Very good
Good
Satisfactory
poor
121
93
Total
130
100
FIGURE NO: 10
7%
Very good
Good
Satisfactory
poor
93%
INTERPRETATION
The above table and diagram shows degree of dealers satisfaction on the credit
period allowed by the company to them .Most of the dealers rated it as poor because
the company only provide credit to the dealers who make bulk purchases.
11. HOME DELIVERY SERVICE

TABLE NO: 11
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Options
No. of respondents
percentage
Yes
61
47
No
69
53
Total
130
100
FIGURE NO: 11
53%
47%
Yes
No
INTERPRETATION
The above table and diagram shows the home delivery services provided by the
dealers. About 53% of dealers does not provide home delivery services. The rest
47% of dealers provide home delivery .Bakeries are the main outlets which provide
home delivery services.
12. CUSTOMERS PREFERENCE OTHER THAN KS MILK

TABLE NO: 12
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Options
No. of respondents
percentage
Milma
54
42
PDDP
12
Sakhti
14
11
Others
50
38
Total
130
100
FIGURE NO: 12
Milma
38%
42%
PDDP
Sakhti
Others
11% 9%
INTERPRETATION
The above table and diagram shows the preferences of customers other than KS
milk.42% of dealers responded that majority of customers prefer Milma .38%
dealers said that the customers prefer other brands rather than Milma, PDDP and
Sakhti.
13. VARIETIES OF KS MILK PRODUCTS SOLD BY DEALERS
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TABLE NO: 13
Options
No. of respondents
percentage
KS butter milk
11
KS curd
54
42
KS ghee
20
15
All the above
45
35
Total
130
100
FIGURE NO: 13
8%
KS butter milk
35%
KS curd
42%
KS ghee
All the above
15%
INTERPRETATION
The above table and diagram shows that majority of dealers sell KS curd because of
customers request and it has a high sale volume than the other products.35% of
dealers sell all the KS milk products .Only a small portion sell butter milk and ghee.
14. SALES MOVEMENT OF KS MILK

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TABLE NO: 14
Options
No. of respondents
percentage
Excellent
37
29
Very good
45
35
Good
24
18
Average
24
18
Total
130
100
FIGURE NO: 14
18%
28%
Excellent
Very good
18%
Good
Average
35%
INTERPRETATION
The above table and diagram depicts the sales movement of KS milk according to
the dealers .Majority of dealers said that the sales movement of the product is very
good. Because of the quality and goodwill of the company customers prefer KS
milk more so the sales is fast.
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15. ATTRIBUTE THAT INFLUENCE THE CUSTOMERS

TABLE NO: 15
Options
No. of respondents
percentage
Price
22
17
Quality
42
32
Availability
26
20
Brand image
40
31
Total
130
100
FIGURE NO: 15
31%
17%
Price
Quality
32%
20%
Availability
Brand image
INTERPRETATION
The above table and diagram shows the attributes that influence the customers to
buy KS milk. Majority of the dealers said that the customers buy the product due to
the quality of the product.31% of dealers reported that the customers prefer the
product due to the brand image .The rest 20% and 17% of dealers said that the
customers prefer it because of the availability and price.
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16. PROBLEM FACED BY DEALER

TABLE NO: 16
Options
No. of respondents
percentage
Bad packaging
No prompt delivery
Insufficient delivery
No problem
130
100
Total
130
100
FIGURE NO: 16
Bad packaging
No prompt delivery
No problem
100%
INTERPRETATION
The above table and diagram shows the problems faced by the dealers .The 130
dealers in Trissur town said that they dont face any problem with the dealership of
the company.
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17. SERVICES EXPECTED BY THE DEALER

TABLE NO: 17
Options
No. of respondents
percentage
Sales follow up
After sales service
30
23
Credict facility
35
27
Seasonal offers
65
50
Total
130
100
FIGURE NO: 17
Chart Title
Sales follow up
23%
50%
After sales services

Credict facility
Seasonal offers
27%
INTERPRETATION
The above table and diagram shows the services expected by the dealers. About
50% of dealers expect more seasonal offers during the monsoon season when the
availability of milk is low. The other 23%and 27% of dealers expect services and
credit facilities.
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18. TIMELY SUPPLY

TABLE NO: 18
Options
No. of respondents
percentage
Yes
130
100
No
Total
130
100
FIGURE NO: 18
Yes
No
100%
INTERPRETATION
The above table and diagram reveals the timely supply of the product to the dealers.
Here all the dealers are satisfied with the timely supply of the product. All the
dealers receive the product at the expected time and quantity.
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19. OPINION ABOUT THE PROMOTIONAL ACTIVITIES

TABLE NO: 19
Options
No. of respondents
percentage
Highly satisfied
11
Satisfied
119
92
Dissatisfied
Highly dissatisfied
Total
130
100
FIGURE NO: 19
8%
Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied
92%
INTERPRETATION
The above table and diagram shows that 92% of dealers are just satisfied with the
promotional activities. According to their opinion the promotional activities are still
to be improved.
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20. TIME OF SALE

TABLE NO: 20
Options
No. of respondents
percentage
Morning
45
35
Evening
36
27
Both times
30
23
No specific time
19
15
Total
130
100
FIGURE NO: 20
15%
35%
23%
Morning
Evening
Both times
No specific time
28%
INTERPRETATION
The above table and diagram shows the time of sale made by the dealers.34% of
dealers said that the sale is made in the morning hours because everyone need milk
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at the specific of time.27% of dealers reported that they got the sale at evening time
as Trissur is a busy town area every one buy milk at that time for their convenience.
21. STORAGE FACILITY

TABLE NO: 21
Options
No. of respondents
percentage
Yes
130
100
No
Total
130
100
FIGURE NO: 21
Yes
No
100%
INTERPRETATION
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The above table and diagram reveals the storage facility of the dealers .All the
dealers have their own storage facility as milk is a perishable food item. Most of the
dealers have small refrigerators for storage.
22. OPINION ABOUT THE SERVICES PROVIDED BY THE

COMPANY
TABLE NO: 22
Options
No. of respondents
percentage
Highly satisfied
30
23
Satisfied
100
77
Dissatisfied
Highly dissatisfied
Total
130
100
FIGURE NO: 22
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23%
Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied
77%
INTERPRETATION
The above table and diagram reveals the satisfactory level of the dealers about the
services provided by the company. Majority of the dealers are satisfied with the
services provided by the company .Only 23% of dealers are highly satisfied with
the services.
23. OPINION ABOUT PACKAGING OF THE PRODUCT

TABLE NO: 23
Options
No. of respondents
percentage
Highly satisfied
130
100
Satisfied
Dissatisfied
Highly dissatisfied
Total
130
100
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FIGURE NO: 23
Highly satisfied
Satisfied
Dissatisfied
Highly dissatisfied
100%
INTERPRETATION
The above table and diagram reveals the packaging of the product .All the 130
dealers are highly satisfied with the packaging of the product because the material
used for the packing is of high quality .The packets does not show any type of
damages.
24. DEALERS ATITUDE TOWARDS SALES PROMOTIONAL

ACTIVITIES
TABLE NO: 24
Options
No. of respondents
percentage
Free samples
Coupons
P.O.P displays
23
18
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None of the above
107
82
Total
130
100
FIGURE NO: 24
18%
Free samples
Coupons
P.O.P displays
None of the above
82%
INTERPRETATION
The above table and diagram reveals the sales promotional activities of the
company. Only a small portion of dealers said that the company uses Point of
Purchase displays for sales promotion. Majority of dealers said that there is no such
sales promotion is conducted by the company.
25. DEALERS MEETING

TABLE NO: 25
Options
No. of respondents
percentage
Yes
No
130
100
Total
130
100
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FIGURE NO: 25
Yes
No
100%
INTERPRETATION
The above table and diagram reveal about the dealers meeting conducted by the
company. All the dealers reported that the company does not conduct dealers
meeting.
FINDINGS
1.
The dealers have considerable experience and their answers are valued much
and their statements were very much helpful for the analysis.
2.
The quality of the K.S .milk is found to be satisfied by most of the dealers selling this
brand.
3. The main outlets of company are bakeries.
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4.
Most of the dealers are just satisfied with the commission provided by the company.
5. Majority of the dealers feel that supply facility as excellent.
6.
The sale of KS milk per day is excellent. The dealers sell more than 150 packets of
milk per day.
7. Most of the dealers feel that the service provided by the firm is average.
8. Most of the dealers feel that the price of milk is good.
9. KS milk is offering credit facility but most of the dealers are not satisfied.
10.
Quality and margin are the main factors which enable the dealers to be dealer of KS
milk.
11. All the dealers have their own storage facility.
12. Among the different KS milk products KS curd have high sales.
13. Dealers does not face any problem with the company.
14.
Dealers meetings are not conducted by the company so the dealers find it difficult to
express their views
15. Packaging of the product is excellent.
16. Customers prefer this product due to the high quality and brand image.
17. Sales promotional activities provided by the company is not enough.
18. Dealers expect more seasonal offers and services from the side of the company.
19. Milma is the main competitor of KS milk.
20. The supply of the product is timely.
21.
77% of dealers are just satisfied with the services provided by the company. Services
provided by the company are yet to be improved.
SUGGESTIONS
1.
Try to increase the amount of sales promotion activities such as

advertisements.
2.
Try to provide better service and schemes. The company can provide bonus to
the dealers at the time of festivals.
3.
Step should be taken to make KS milk available at all places.

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4.
Try introducing new product into the market. They can introduce flavored
milk in the market which may attract children .They can introduce cheese and
butter into the market.
5.
Dealers meeting should be conducted yearly.

6.
They should try to introduce other types of packing. They can introduce bottle
milks so that it may be more convenient in handling.
7.
The company should provide credit facilities to the dealers.
CONCLUSION
The study has helped the researcher a great deal in getting through
knowledge of the marketing and system of distribution, competition and general
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trends .the study has been useful to acquire a practical experience a part from the
theoretical knowledge.
The study certainly proved that KS Milk can improve their market
share. Though KS Milk enjoys the brand image, it certainly has to work up on the
service and other aspects so as to remain in that position. Even though KS Milk has
a certain negative aspects. It still can emerge as the top brand with certain
adjustment in the existing policies and strategies.
BIBLIOGRAPHY
BOOKS:
91
Management
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Author
: C.R KOTHARI
Book
: Research Methodology, methods and

Techniques
Publisher
: New Age International (p) ltd Publisher

Second Revised Edition: 2004
JOURNALS
: Annul report
WEBSITES
Department of the company;
Date
: 17/07/2012
Time
: 10.15 am
http://www.google.com
Date
: 1/8/2012
Time
: 10.20 am
http://www.kselimited.com
Date
: 1/8/20/12
Time
: 11.00 am
QUESTIONNAIRE
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1. How long have you been dealing with KS products?
Less than 5year
5years
5-10years
More than 10 years
2. What business do you do?

Milk booth
Bakery
Provisional store
General store
3. What is the reason for purchasing from KS?

More commission
Good quality
Customers request
All the above
4. Are you satisfied with the commission from the side of the company?
Highly satisfied
Dissatisfied
Satisfied
Highly Dissatisfied
5. Do you think that the customers are satisfied with the KS milk products?
Yes
No
6. Which brand of milk do you sell other than KS?

Milma
PDDP
Both
Others
7. What do you feel about the price of KS milk products?

Very good
Good
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Satisfactory
Poor
8. How much quantity of milk do you sell per day?

20 packets
20-40 packets
40-60 packets
More than 60 packets
9. Which factor enables you to be the dealer of KS milk products?

Promotional scheme
Quality
Companys policy
Margin
10. What do you feel about the credit period given by the company?
Very good
Good
Satisfactory
Poor
11. Do you provide home delivery service?

Yes
No
12. Which brand of milk do customers prefer more than KS?

Milma
Sakthi
PDDP
Others
13. What are the different varieties of KS milk that you sell?
KS butter milk
KS curd
KS ghee
All of them
14. How do you rate the sales movement of KS milk?

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Excellent
Very good
Good
Average
15. What is the most important attribute that influence the customers?
Price
Quality
Availability
Brand image
16. What type of problem do you face in the delivery and purchase of KS milk?
Bad packing
No prompt delivery
No problem
17. What are the services that you expect from the company?
Sales follow up
After Sales Services
Credit facility
Seasonal offers
18. Whether the expected quantity of KS products is supplied to you in time?

Yes
No
19. What do you feel about the promotional activities provided by the company?
Highly satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
20. During which period of time do customers prefer the product?

Morning
Both times
Evening
No specific time
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21. Do you have own storage facilities?
Yes
No
22. Are you satisfied with the services provided by the company to the dealers?
Highly satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
23. Are you satisfied with the packaging of KS milk?

Highly satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
24. Do you know which sales promotional activities does the company undertake
for KS milk?
Free samples
Coupons
P.O.P displays
None of the above
25. Is there dealers meeting conducted by the company?

Yes
No
THANK YOU
96

Management PRJCT KSE

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Management PRJCT KSE

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Management

INTRODUCTION TO THE STUDY

RATIONALE OF THE STUDY

OBJECTIVES OF THE STUDY

To find out the dealers attitude towards branded milk.

To identify reason as to why customers and dealers prefer KS milk.

To evaluate present market condition of KS milk.

To find out the expectation of dealers from the company side.

To know the buying behavior and motive of customers.

To find out how dealers rate the promotional activities.

To identify the competitors of KS milk in Trissur town

ii. ALTERNATIVE HYPOTHESIS

Exploratory research design.

DATA COLLECTION METHOD

ii. SECONDARY DATA COLLECTION

VARIABLES UNDER STUDY

The duration of the project study was a period of 45 days.

LIMITATIONS OF THE STUDY

Elements of the Marketing Mix

Downward flow of goods from producers to consumers

Upward flow of cash payments for goods from consumers to producers

Flow of marketing information in both downward and upward direction i.e.

Producer-Retailer-Customer: - This channel of distribution involves only one

Producer-Wholesaler-Retailer-Customer: - This is the most common and

Producer-Agent-Wholesaler-Retailer-Customer: - This is the longest channel

INDIAN DAIRY INDUSTRY

The crossbred technology in the Indian Dairy Industry has further

DAIRY INDUSTRY IN KERALA

company stated production of ready mixed feed with the

PRESENT STATUS OF THE COMPANY

Solvent plant commences operation.

Ready mixed cattle feed.

Production capacity of cattle feed

A fully automatic new cattle feed

Thus solvent extraction plant

Cattle feed plant capacity increased

Cattle feed plant in Tamilnadu went

A solvent unit with a capacity of 120

Introduction of KS supreme pellets

Palakad branch started.

KS enters export market.

Cattle feed production started at my

240 TDP cattle feed plant at

Nirmala College of Information Technology, Chalakudy

Company renamed as KSE LTD.

Fourth feed production unit at

A modern children park &

Company started production &

Started operating solvent extraction

Irinjalakuda unit cattle feed plant

Vesta heaven ice cream par lour at

KSE bags productivity award.

Cattle feed production capacity there

200 TPD the solvent extraction plan

Install 500 TPD cattle feed plant at

CMD, CYM and others at the auto

Ice cream production unit at

OBJECTIVES OF THE COMPANY

To produce , manufacturing , extract , refine , prepare , import , export sell and

To purchase, manufacture, sell or otherwise deal in oil cakes, washing soap,

products , explore new avenue in product development are marketing , create a

Chairman and managing director

Director and legal adviser