44

CHAPTER - HI

PROFILE OF WARANA DAIRY

3.1 ECONOMIC AND PHYSICAL SETTING :

Warananagar, near village Kodoli, is situated at distance of

about 30 KMs to the north-west of Kolhapur in Kolhapur district.

With the effort of some progressive sugar factory viz., Shri. Warana

Sahakari Sakhar Karkhana was registered in September 1955 at

Warananagar. In its efforts to promote further economic

development a co-operative poultry was established in December

1963 later on the local leadership started developing plan for the

region. A boarding school and an Arts, Commerce and Science

College was established at Warananagar in 1964 and Shri. Warana

Sahakari Bank Limited in 1966. Thereafter, in view of abundant

natural resources in the region in the form of river banks and

pastures suitable soil and climate conditions and rainfall and

prevailing agricultural practices and cropping pattern which

provided ample fodder for raising milk cattle, the local leaders, who

were instrumental in establishing the co-operative sugar factory

decided to take up a co-operative dairy project on the mode of

Anand in Gujarat. As a result of unsustained efforts on their part,

Shri. Warana Sahakari Dudh Utpadak Prakriya Sangh Ltd.,

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Warananagar District, Kolhapur was instituted on 20th July 1968

under the Co-operative Societies Act of Maharashtra State.

The area of the diary project lieu to the west of Deccan

plateau between 15°N and 17°N latitude and 73°E and 75°E

longitude. The temperature is moderate and generally not bellow

14°C in December and not above 39°C in April, May. The soils

consist of red to brownish red laterite in parts of Karvir, Panhala,

and Shirala talukas.

The sangh started collection of milk in January 1970 and

proceeded to formulate an integrated programme of dairy

development. Such process was day to day expansion with

convosion guaranteed market for the milk produced from distant

remote villages of the area. (See map No. 3.1). To produce it

through organized sector, transport if to the central dairy process

and market milk and its products in competitive markets.

The primary co-operative milk producers societies and

agencies have important role to play the integrated development of

various aspects viz., Development of milk stock, veterinary aid,

quality fodder development, collection of milk its chilling, quality

control and transport to processing unit, processing and

manufacturing of products sale, credit facilities and their linking

etc. The development of the industry has been allow and many

times lop sided, since these represent various section of one

industry on the problems in each of them are inter-related. It was

 46

thus obvious that an integrated approach was necessary for a

speedy balanced development of the diary.

The Warana Dairy was approved by the Agricultural Finance

Corporation Dept., 1972. The Central Government issued factory

license in 1973-74. The dairy in its area of operation has

undertaken, scheme of milk production improvement projects such

as cross breeding of cows, upgrading of buffaloes, veterinary aids,

fodder production, etc.

LAND OCCUPIED :

Own area of 50 acres has been obtained from the Warana

Kombadi Sahakari Sangh’ on lease agreement. Such land use main

diary building product development laboratory. Ice factory building,

staff quarters and other uncillary buildings such has purchased

additional 22 acres of land for demonstration development of dairy

unit and fodder development.

DEVELOPMENT OF WARANA DAIRY :

September 1955 Shri. Warana Sahakari Sakhar Karkhana

December 1963 A Poultry co-operative was established with

20,000 layer’s and 14,000 growing birds. It is

located near to the factory site.

December 1964 A boarding school an Arts, Commerce and

Science CoEege was estabHshed. Rs. 5 per ton of

sugarcane supply was coUected by Warana Sugar

Factory from its farmer member and created a

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fund for educational purpose.

December 1966 A Co-operative bank established. This bank

provided loan to the extents of Rs. 1,84,000 to

farmers and petty contractor for purchases of

bullock cart, tractors, trolley, pump sets, diesel

engine, motor etc. It also provided loan to

farmers for the purpose of irrigation facilities.

July 1968 Dairy plan was constructed.

July 1969 Multipurpose auditorium for cultural and

educational programme of the region was

constructed.

July 1979-80 Warana Co-operative Consumer Stores (Shri.

Warana Vibhag Sahakari Grahak Mandal) was

also come into existence.

August 1991 Malted Milk food project.

1999 Powder plant (35 M. Ton Capacity)

1999 Co-generation plant for power generate

i
2003 Baby food products

2002 Bite product for Cadbury India

2005 Tetra pack production

2005 Multi State powder plant

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3.2 COMMAND AREA

The command area of the Waran Dudh Sangh in 1972

extended over 66 villages from Panhala and Hatkanangale talukas

of Kolhapur districts and Walwa and Shirala talukas from Sangli

district and location of Warana Sahakari Dudh Utpadak Sangh

Limited, Amrutnagar as shown in Map No. 3.2.

Up to the financial year 2004-2005, the command area of

Warana Dairy extended over 85 villages.

A KOLHAPUR DISTRICT :

i) PANHALA TALUKA:

1) Sawarde (Satwe) 8) Dewale

2) Satwe 9) Male

3) Aarale 10) Kekhle

4) Mohare 11) Pokhle

5) Kakhe 12) Jakhle

6) Borpadle 13) Bahirewadi

7) Shahapur 14) Kodoli

ii) HATKANANGALE TALUKA:

15) Padli 28) Tasgaon

16) Man Padle 29) Sawarde (Minche)

17) Ambap 30) Kumbhoj

18) Pargaon 31) Nilewadi

19) Talsande 32) Minche

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20) Chavare 33) Narande

21) Ghunki 34) Nagaon

22) Kini 35) Herle

23) Vathar 36) Buwache Vathar

24) Vadgaon 37) Alate

25) Bhadole 38) Khochi

26) Latwade 39) Halondi

27) Bhendwade 40) Sambhapur

41) Top 47) Mangagaonwadi

42) Kasarwadi 48) Sajni

43) Shlroli (Pulachi) 49) Majale

44) Rukadi 50) Mouje Vadgaon

45) Chokak 51) Male

46) Atigre 52) Malewadi

47) Mangaon 53) Malewadi

54) Kasarwadi

iii) KARVIR TALUKA:

55) Shiye 28) Jatharwadi

56) Bhuye 29) Mudshingi

57) Bhuyewadi
 50

B) SANGLI DISTRICT :

i) WALWA TALUKA:

60) Thanapude 70) Eitwade (Budruk)

61) Chikurde 71) Tandulwadi

62) Dewarde 72) Kanegaon

63) Eitawade (Khurd) 73) Malewadi

64) Vashi 74) Bahadurwadi

65) Karanjawade 75) Koregaon

66) Ladegaon 76) Shigaon

67) Kurlap 77) Famewadi

68) Yelur 78) Rare

69) Kundalwadi

i) SHIRALA TALUKA:

79) Sagaon 82) Natoli

80) Kande 83) Mangle

81) Chikhali 84) Deowadi

3.3 FINANCE FOR WARANA DAIRY :

The project report and technical feasibility was approved by

government. Total financial requirements of the project were

estimated to Rs. 251 lakhs of which the loan components was about

74% and 26% was to be raised as margin money. Initially Sangh

had collected Rs. 9 lakh as share capital from farmers. Share

 51

Capital which was only 6.5% of project cost. Therefore, we

approached various bank and finally Agricultural Finance

Corporation and Bank of India and Commercial banks.

Table No. 3.1

Project Cost of Warana Dairy

Sr. Item Loan (Rs.) Margin (Rs.) Total (Rs.)

No.
1. Purchase of milk 89,40,000 29,80,000 11,92,000

animals farmers

level

2. Silo pits, 14,75,000 4,90,000 19,65,000

equipment, etc.,

Socieities level.

3. Dairy Plant, 1,24,00,000 22,00,000 1,46,00,000

Building,

Machinery,

equipment, can

etc. Sangh Level

TOTAL 2,28,15,000 56,70,000 2,84,85,000

Source : Record of Warana Dairy

BANK FINANCE :

On 8th June 1972, Bank of India approved in principle the

scheme for the project and 20th December 1972 sanctioned a loan

of Rs. 81.17 lakhs for the project and also finance for special case

treatingUs as a part and parcel of their activities.

 52

As this project is financial by nationalized bank, we are

required to pay interest 14.75% initially. Subsequently, this project

was approved for refinance by Agriculture Refinance Development

Corporation. Afterwards the rate of interest brought down to 11%.

The higher rate of interests and non-availing share capital and any

subsidy from State Government has lead towards the higher cost to

the diaiy.
Since 1969, Sangh was continuously facing heavy financial

difficulties. This was due to non-subsidies loan, higher rate of

interest and no share capital contribution from state government.

The entire production viz., S.M.P. Ghee as well as Buffaloes milk

was being given to the Government of Maharashtra till 1987-89.

The government was paying only provisional bills for the products

supplied to G.M.B.S. Therefore, the amount of pending bills with

the government was raised to more than one crore rupees. This

was a stage when the Sangh might have collapsed if the

management would not have taken the decision of entering into the

open markets to sale milk and milk products. The tireless efforts to

establish the marketing in the Bombay as well as local cities is

giving fruits since 1980-81.

3.4 ORGANIZATION PATTERN :

MEMBERSHIP -

The organization started on co-operative basis having

member 810 with the share capital of Rs. 10,56,200 . It issued its

share on 5th January 1968. It covered 66 villages. The PCMC are

 53

registered as B’ class member of the Sangh on their purchasing at

least on share of Rs. 500 . The B’ class member of elect three out

of 18 directors on the Board of Directors of the Sangh.

Table No. 3.2

Membership of Warana Dairy

Year ‘A’ Class ‘B’ Class Total Member

Member Member

2000-2001 15,485 251 15736

2001-2002 15,514 263 15,777

2002-2003 15,508 265 15,773

2003-2004 15,508 272 15,780

2004-2005 15,508 277 15,785

Source : Annual Reports of Warana Dairy.

There will be four classification of the membership of the

Sangh.

‘A’ Class : Member producting.

B’ Class : Milk producting and collecting societies and other

co-operative societies.

‘C’ Class : State Government.

TV Class : Nominal Member.

3.5 BOARD OF DIRECTORS :

The following members will comprise the board.

1. The elected 15 members from A’ Class.

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2. Five elected members from Class members. However, they

must be members of ‘Panch Committee’.

3. One member of financial institution.

4. Commissioner or his representative of dairy development.

5. District Dy. Registrar of his nominee of cO-operaive societies

(Dairy Development.)

6. Representative of Weaker Section.

7. Representative of Backward Class.

8. Expert nominated by Board of directors.

9. Labour representatives - 2.

10. Women Representatives - 3.

11. Managing Director of ex-off member.

12. As per the provision of No.l and @ of the bye-laws the

constituency for the election of all the villages in the

jurisdiction of the Sangh is only one. However, for the

convenience of village and each sub-constituencies will be

decided by the board of directors and will be approved by

DDR.

The Chairman of the Sangh will be elected from the elected

representatives. The period of the board of directors will be 5 years

as per the provision of the Act.

For given various election marking function the board of

director constitute a number of sub committees involving officers of

the Warana Dairy. The Board of Directors and Sub-committees

meet periodically and take the decision with consensus.

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CHAIRMAN AND VICE-CHAIRMAN :

The chairman and Vice-chairman are elected by director. All

policy decision is taken at directors meeting. The Chairman

presides over all the meetings in his absence, this task is performed

by Vice-chairman decision making process is shown in following

chart.

Decision Process in Co-operative Dairy

Member of Share Holders

X
General Body
X
Director Board
X
Chairman
X
Manager
XStaff

In addition to board of directors, there are four working

committees to implement the decisions taken by the board of

director. The working committees consist of officers of the Warana

Dairy and some directors. The name of committees are as given

below:

i) Executive Committee.

ii) Purchase and Sales Committee.

ill) Milk Procurement Committee.

iv) Transportation Committee.

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MANAGING DIRECTOR :

The Managing Director is the Chief Executive and head of Co­

operative and looks after routine nature work with the help of

functional heads like - Administrative Officer, Factory Manager,

Sale’s Officer, Transport Engineer, Senior Accountant, etc.

The information revealed from secondary data in study period

that Warana Dairy has various different functional areas follows :

1) Administration Department.

2) Sales Department.

3) Purchase Department.

4) Account Department.

5) Marketing Department.

6) Procurement Department.

7) Veterinary Department.

8) Cattle Feed.

9) Factory Department.

10} Quality Control Department.

11) Engineering Department.

12) Security Department.

13) Transport Department.

14) Time Office.

15) Bombay (Vashi) Branch.

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3.6 MILK COLLECTION :

Warana dairy has two sources of milk collection.

i) Primary dairy societies from the command area.

ii) From societies outside the area of command mainly

from Karnataka State.

In the case of milk collection from area of operation there has

been (59) morning routes and (59) evening routes involving (587)

Primary dairy co-operative societies as shown in table No. 3.3.

Promoting more and more co-operative societies and increasing

milk routes in the command area has been ‘Milk collection Strategy’

of Warana Dairy.

The command area includes only 85 villages which set a limit

on the establishment of increasing number of economically viable

societies.

Table No. 3.3

Milk Routes of Warana Dairy

Tear Routes Total Routes Societies

Morning Evening

2000-2001 44 44 88 245

2001-2002 45 45 90 350

2002-2003 44 44 88 448

2003-2004 48 48 96 490

2004-2005 59 59 108 587

Source : Documents of Warana Dairy.

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Warana Dairy started milk collection about 1950 liters on an

average per day in year 1970. At present, Warana Dairy collects

about 2,66,634 liters per day in the year 2004-2005.

Table No. 3.4

Milk Collection of Warana Dairy in the Year 2004-2005

(In Lakh)

Sr. Particular Warana Functional Outside Area

No. Area Milk Ltrs.
1 Buffaloes milk 391.31 228.00

2 Cow’s Milk 255.05 100.00

Total Milk 646.36 328.00

3 Per Day Average Milk 1.77 90.00

4 Conversion 2.90 673.27

5 Daily Handling 1.17 2.74

6 Total 649.26 1001.27

Source : Annual Reports of Warana Dairy.

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Table No. 3.5

Milk Collection of Warana Dairy in the Year 2004-2005

Sr. Particular 2004-2005

No.
1 Daily average milk procurement liters 2,66,634

2 Daily milk handling liters 4,51,886

3 Growing milk in liters 4,84,730

4 Growing milk in liters as compare to previous 51,58,897

year in the functional area of Warana Daily

5 Total kilometers for milk procurement 31,10,266

6 Per liter milk procurement 0.34

7 Per K. M. milk procurement liters 19

8 Smell milk average percentage 0.37%

Source : Annual Reports of Warana Dairy

3.7 MILK PRODUCTS OP WARANA DAIRY :

The Warana daiiy produces variety of milk products from

milk. They are produced from buffalo as well as cow milk. The

surplus milk left over from sale is processing mainly milk products

such as Ghee, Shrikhand, Milk Powder, Cream, Lassi, etc.

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Following is the milk products of Warana Dairy.

Sr. No. Milk Product

1 Ghee
2 Shrikhand
3 Milk Powder
4 Lassi (200 M.L. Bags)
5 Table butter
6 Cheese
7 Paneer
8 Hole milk powder
9 Serex powder
10 Mix fruit Jam
11 Boumvita
12 Coca packing
13 Drinking chocolate
14 Delight
15 Bite
16 Jam
17 Soft drinks
18 Banana pury
19 Mango Palp
20 Chakka
21 Aamrakhand
22 Buttermilk
23 Curd

Today Warana Shrikhand, Ghee, Boumvita, Chocolate is veiy

famous products all over the State of Maharashtra and other state

of India. Specially Warana Shrikhand is very popular. The demand

of Warana product day-by-day increase because of the test and easy

availability of Warana Product.

The following table showing the growth of milk product in the

year 2001 to 2005.

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Table No. 3.6

Growth of Milk Products from the year 2001 to 2005

Sr. Name of the Product 2001-02 2002-03 2003-04 2004-05

No. M. Ton M. Ton M. Ton M. Ton
1 Ghee 744.7 906.4 1060.2 948.864

2 Shrikhand 2094.2 2065.2 1880.1 2079.235

3 Milk Powder 4345.5 2494.0 2177.1 6615.05

4 Lassi (200M.L. Bags) 3014150.0 2867800.0 2391930.0 1920675.0

5 Table butter 260.4 268.6 349.7 287.48

6 Cheese 95.0 29.8 16.1 25.778

7 Curd 96.155 154.064 9.7 314.368

8 Butter Milk (Ltr) 31116.0 56240.0 102124.0 133232.0

9 Paneer 17.509 33.363 39.3 66.647

10 Mix fruit jam -- —

76.7 46.317

11 Hole milk powder 49.5 109.5 8.7 190.581

12 Boumvita 5831.769 5438.268 6359.542 6766.9

13 Coca packing 72.608 77.664 85.660 85.06

14 Drinking chocolate 262.800 72.608 295.725 285.33

15 Delight — 60.720 753.135 588.48

16 Bite — 75.895 270.21

Source : Annual report of Warana Dairy.

SALE OF BULK AND MILK PRODUCTS :

The Warana diary started his own milk and milk products

sales scheme in the year 1981 independently. This mechanism of

own sale is possible to diary due to proper planning. Discretion

Policy of Management, efficient and effective distribution policy of

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milk and milk products. There has been always increasing demand

for milk and milk products on account of high quality and better

standard of milk and milk products.

Day by day, sales activity of Warana dairy is ever expanding

in its area, size, volume of milk and milk products. At present, milk

is being sold al over the state of Maharashtra, Karnataka, Goa and

Andhra Pradesh, etc. Milk is disposed of in the following ways.

i) Local sale.

ii) Milk sale in Bombay.

iii) Milk supply to the Govt, scheme.

iv) Milk sale on wholesale basis.

v) Milk product manufacturing.

vi) Standard milk preparation.

The following table shows the comparative sale in the

financial year 2001-2005.

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Table No. 3.7

Comparative Sale in the Financial Year 2001 to 2005

Sr. Name of the Product 2001-02 2002-03 2003-04 2004-05

No. M. Ton M. Ton M. Ton M. Ton
1 Buffalo milk, Ltrs. 40096355 41914657 42670836 45286079
2 Cow milk, Ltrs. 15113081 17871047 18487635 19685262
3 Standard milk, Ltrs. 6056591 4079904 3905303 4178863
4 Toned milk, Ltrs. 7331627 7917605 9538183 9466495
5 Skim milk, Ltrs. — — 2130 166393
6 Condensed milk Ltrs — 131203 117765 --

7 Flavored milk Ltrs. — — 16132 9471

8 Ghee (Ton) 742 920 1030 854
9 Milk powder (Ton) 2695 2521 1986 1717
10 Shrikhand (Ton) 2027 2011 1982 1940
11 Lassi (Nag) 2935793 2837832 2301535 1912338
12 Butter white (Ton) 1352 529 182 28
13 Butter yellow (Ton) 783 173 52 175
14 Table butter (Ton) 240 251 344 278
15 Cheese (Ton) 87.793 32.004 16 26
16 Paneer (Ton) 17.491 31.503 41 66
17 (Ton) 94.720 149.995 264 313
18 Ltrs. 25786 52806 98089 131362
19 Mango pulp — — 952 1.739
20 Mix fruit jam — " 42 —

21 Banana pury — — — —

22 Cream (Ton) — — — 92
23 Soft drinks (Nag) — — — 48,195
24 Jam (Ton) — — — 24
25 Serex powder (Ton) " " — 5
Source : Annual report of Warana Dairy.