KMF to open retail units in apartments to boost sales

Karnataka Milk Federation, which is running under losses owing to various factors, is looking at boosting its sales by opening retail units in apartment complexes in the City.

To overcome its shortcomings, KMF has worked out a module, which it will place before the managing directors of the 14 milk unions during its monthly meeting on February 6.

On a pilot mode, KMF has proposed to set up parlours in 100 apartments in the City. Once the milk unions give their assent to the proposal, the federation will reach out to apartment associations with its new concept. According to officials, every apartment has a sanctioned space to run a grocery/vegetable store, which can be used to set up a Nandini parlour. Apartment associations will have to take up the responsibility of running these outlets by appointing a ‘beneficiary’. KMF will not be renting the parlour – it will, however, extend a subsidy of 50 per cent to purchase a ‘deep freezer’ and a ‘bottle cooler’, each costing around Rs 22,000.

 It will also take care of branding, including installation of glow sign boards. KMF will be investing Rs 80,000 to Rs one lakh on each parlour. All the products will be sold at a maximum retail price. The federation, however, will not be sharing the profits made by the parlour.

Officials said this would ensure availability of all of its products fresh to consumers. The products will be replenished on a daily basis. KMF will introduce an indenting system, where the persons managing the parlours will be required to place orders online for the next day, at 6 pm daily. If the products are sold out by morning, an indent can also be placed during the day, so that the same are made available by afternoon.

KMF, which saw a turnover of Rs 10,685 crore in 2014-15, recording a profit of Rs 152 crore, has, however, incurred a loss of Rs 28 crore during the current financial year. Up to November, KMF has been able to mobilise only Rs 7,158 crore.

Its 60-odd products are available in around 450 outlets/ Nandini parlours in Bengaluru and 876 outlets spread across the State.

However, it is only milk and curd which are fetching KMF its largest earning. Despite the variety, it has not been able to market its other products, which range from ghee and butter to ice creams.
DH News Service