ARECANUT is an important commercial crop in India and finds a place in all religious, social and cultural functions in India. Cultivation of Arecanut is mostly confined to States of Karnataka, Kerala and Assam,but the consumption is spread all over the country. India is considered as the largest Arecanut producing country in the world.

 The total acreage under cultivation is 264000 hectares and the annual production estimated at 313000 metric tones,with Karnataka and Kerala accounting for nearly 72 percent of total production. Over six million people are engaged in arecanut cultivation, processing and trade.More than 85 percent of the area under cultivation is made up of small and marginal holdings.

  A sudden marketing crisis in the year 1970-71, when prices registered a marked fall which caused considerable concern to the growers, was the genesis for the setting up of this Co-operative Venture (what popularly is called The CAMPCO). Growers had been thrown into panic with the prices coming down by half of what was prevailing till 1970-71 season.

  Various measures were thought of for organized marketing management and leaders among growers sat together to find a way out. State Government of Karnataka, on the advice of an Expert Committee, recommended organizing a Central Agency in the Public or Co-operative sector. With the blessings and active support extended by the State Governments of Karnataka and Kerala, the CAMPCO was registered on 11th July 1973 under sec.7 of the Karnataka Co-operative Societies Act read with sec.4(2)of the Multi State Co-operative Societies Act 1984. Through perseverant efforts of far sighted , dedicated and resourceful leaders,with the cooperation and assistance of equally dedicated growers under the guidance of the State Governments of Karnataka and Kerala, this institution took giant strides forward and has turned into a tower of strength to the areca growing community in the country.

  The CAMPCO has been functioning effectively with the main objectives of

  • Procuring Arecanut and Cocoa grown by member cultivators and if necessary, from other growers on an agency basis or on outright purchase basis
  • Sale of Arecanut and Cocoa and their products to the best advantage of members and also to advance loans to members on the pledge of goods and to do all other things necessary to carry out the objective.
  • To promote and develop Areca and Cocoa cultivation,marketing and processing.

  The area of operation of this cooperative for procurement and processing of Arecanut and Cocoa extends to the States of Karnataka and Kerala,but for the marketing activity, the area has been extended to the whole country. Arecanut purchase operations were extended to Assam,Andaman and Goa but in recent years purchase operations in Assam had to be closed due to disturbances.

  Starting with its Head office at Mangalore in coastal Karnataka, the CAMPCO began with a handful of procurement centers in Karnataka and Kerala. The Campco adopted a safe policy for purchasing and marketing the commodity and maintaining standards in quality assiduously with the dedicated cooperation of a network of diligent officers and workers. The society achieved success by leaps and bounds,stood the brunt of changing trends,market recessions and upheavals,glut in the market and even national calamities in the marketing field for more than two and half decades. Confidence has gained among the growers for areca cultivation as an economically viable and comfortable proposition.

  The co-operative encouraged growers to take-up Cocoa cultivation as an inter crop in the latter half of the 70’s as a supplemental crop. This grew up to become a large scale operation with good results. A sudden withdrawal by the buyers of Cocoa from the procurement operations due to crash in the international market came as a shock to cultivators. Karnataka and Kerala governments enthused at this stage the CAMPCO to enter on the scene to rescue the farmers from distress.CAMPCO willingly took up the responsibility to enter the cocoa market and performed a savior’s role.As a strategy for survival in the International scene the CAMPCO played a major role in establishing a name for Indian Cocoa, which hitherto had not been achieved. It procured Cocoa Pods from growers and adopting scientific processing methods to market standards,released dry cocoa beans matching in quality in the world market to that of Ghana,Brazil and other leading Cocoa cultivating nations. With a view to creating a permanent demand and a steady market for the beans,Campco established a Chocolate Manufacturing factory at Kemminje village in Puttur Taluk in Dakshina Kannada District adopting foreign technical collaboration in chocolate making.The factory was set up in 1986 at an initial investment of RS.116.7million and a licensing capacity to produce 8800 metric tones.The factory also entered into technical cooperation venture with NESTLE (India) Ltd,for diversifying product brands.It has been producing a variety of products – semi finished items like Cocoa Mass, Cocoa Butter and Cocoa Powder and finished products in moulded line, count line, Chocolate drink etc. .CAMPCO chocolate has gained extensive market popularity in India.

GST Karnataka  – 29AABAT8409N1ZU

GST Kerala          – 32AABAT8409N1Z7

GST – CCF            – 29AABAT8409N2ZT

THE  CENTRAL  ARECANUT  &  COCOA  MARKETING  AND  PROCESSING  CO-OPERATIVE  LTD.,

‘VARANASHI TOWERS’,  MISSION STREET, MANGALORE – 575 001.

 

1 Full Name :  

THE CENTRAL ARECANUT AND COCOA MARKETING AND PROCESSING CO OPERATIVE LIMITED.

 

2 Status :  

A CO-OPERATIVE ORGANISATION REGISTERED UNDER THE MULTI STATE COOPERATIVE SOCIETIES ACT,

 

3 Area of Operation :  

KARNATAKA AND KERALA STATES FOR MEMBERSHIPS.  NO LIMITS FOR MARKETING

 

4 Main Objective :  

PROCUREMENT / PROCESSING / MARKETING OF ARECANUT AND COCOA / COCOA PRODUCTS / RUBBER / PEPPER.

 

5 Date of Registration :  

11/07/1973

 

6 Date of Commencement of Business

 

: 12/11/1973

 

7 Authorised Share Capital :  

Rs.55.00 Crores

 

8 Paid up Share Capital :  

Rs. 49.45  Crores as on 31/03/2019

 

9 No. of Individual Grower Members : 1,12,606
10 No. of  Member Cooperatives : 570

 

11 Deposits as on 31/03/2019 :  

Rs.11563.57 Lakhs

 

12 No. of Branches and Depots :  

160 (All Over India)

 

13 Industries Owned :  

THE CAMPCO CHOCOLATE FACTORY AT PUTTUR

 

14 Annual Gross Turnover

 

2016-17

2017-18

2018-19

 

 

 

:

:

:

:

 

 

₹ 1616.93 Crores

₹ 1742.00 Crores

₹ 1875.00 Crores

 

15 Bankers : 1.     SYNDICATE BANK – Consortium leader

2.     CANARA BANK

3.     STATE BANK OF INDIA

4.     KARNATAKA  BANK

5.     HDFC Bank

6.     AXIS BANK

 

16 Sanctioned drawing limit with Bankers : Rs.300.00 Crores as on 31/03/19

 

17 Net Profit  during the period as on 31/03/2019

 

: Rs.32.50 Crores
  1. Details of Areca Procurement/Sales for the period from 01/04/2018 to 31/03/2019

 

Qty. in Qtls. Value in Lakhs
Purchases 572096 158888.03
Sales 547673 159339.77

 

 

  1. Details of Cocoa Procurement during the period from 1/4/2018 to 31/03/2019

 

 

Qty. in Qtls. and Rupees in lakhs

                WET BEANS        DRY BEANS
  Qty. Value Qty. Value
 

PURCHASE

 

 

22074

 

1249.23  

31708

 

6304.19
Consumption at Factory 0.00 0.00 36572 7323.96

 

  1. Details of Rubber procurement during the period from 1/4/2018 to 31/03/2019

 

Qty. in Qtls. Value in Lakhs
Purchases 22496 2710.78
Sales 22477 2764.45

 

 

  1. Details of Pepper Purchase and Sales from 1/4/2018 to 31/03/2019

 

Qty. in Qtl             Value Rs. in Lakhs

Purchase 6625.00 2371.31
Sales 5183.00 1837.02

 

  1. Details of Copper Sulphate Purchase and Sales from 1/4/2018 to 31/03/2019

 

Qty. in Qtl             Value Rs. in Lakhs

Purchase 1595.00 240.85
Sales 1421.70 232.89

 

 

  1. Date of Entry into Chocolate Market : MARCH / APRIL  1987.

 

 

  1. Present Sale of Chocolates ( 2018-19) :  ₹ 193.09 CRORES(Both consumer and

Industrial products)

 

 

  1. Details of Chocolate Production/Sales from 1/4/2018 to 31/03/2019

 

 

Qty. in  MT      Value in Lakhs

Production Including  NESTLE & CIL 14605.68
Sales of Chocolates (Including Sales to NESTLE) 9968.50 19308.96

 

 

 

 

ACTIVITIES OF CAMPCO

           

          BACKGROUND

 

The  Central Arecanut & Cocoa Marketing and Processing Co-operative Limited popularly known  as “CAMPCO” was born and registered on 11th  July 1973 under Section 7 of the Karnataka Co-operative Societies  Act 1959  read  with  Section 4(2) of  the  Multi  Unit Co-operative Societies  Act 1942.  The Institution is  presently  functioning under  the  Multi  State Cooperative  Societies  Act 2002 having 1,13,000 farmer members and help them in marketing their produce like Areca  (Supari) Rubber,Cocao,Pepper etc.   The following are its main objectives:

 

  1. a) To  procure Arecanut, Cocoa,Rubber & pepper of  the  Members  and  if necessary,  from other   Growers  on  agency basis or   on  outright purchase basis.

 

  1. b) To  arrange  for  sale  of  Arecanut,  Cocoa, Rubber & Pepper and  their products   to the   best  advantage   of   the Members   and  also   to   advance   loans  to Members on  the  pledge  of goods  and  to  do  all  other  activities necessary   to carry  out the objectives.

 

  1. c) To  promote  and  develop  Areca,  Cocoa, Rubber & Pepper  Production, Marketing    and Processing.

 

The area of operation of this Cooperative extends  to  the States  of Karnataka and Kerala.  However, for the purpose of Marketing  of Arecanut,  Cocoa, Rubber & Pepper and their products, the whole of the Country  has  been included.

 

 

 

ORGANISATION AND MANAGEMENT

The Management of CAMPCO vests with a Board of Directors.  There are 17 Directors who are elected as per the provisions of Bye-Laws   including Managing Director. Sri. S.R.Sathishchandra is the President of the Cooperative, Sri Shankar Narayana Bhat K. is the Vice-President and Sri. M. Suresh Bhandary is the Managing Director.  In order to speed up the activities of the Cooperative, the Board has framed one Executive Committee consisting of 7 Members of the Board and one Business Committee consisting of 9 Members of the Board.

The Executive Committee and the Business Committee are be entrusted with task of framing the policy to stabilize and decide about the financial and business transactions of the Institution. The compositions of these Committees are as follows:

 

 

EXECUTIVE  COMMITTEE    

BUSINESS COMMITTEE

 

1. President 1. President

 

2. Vice-President  

2. Vice-President

 

3. Managing Director  

3. Managing Director.

 

 

4. Two Directors from each State

 

4. Two Directors from each State
7.     The Senior most Officer of ARECA Marketing

 

6. The Head of CAMPCO CHOCOLATE FACTORY.

 

PROCUREMENT & MARKETING

 

CAMPCO  entered  the Arecanut market in  November  1973  and within  a  short period  of  its  entry  into  the  Market, the Cooperative  was able to bring the market to the  pre-fall  level and by its judicious and effective procurement and sales  policy, and  efficient business administration, CAMPCO has been  able  to assure  the Growers of an economical price  for  their  produce.     Thus, by the operations of CAMPCO, the Growers are now getting a very remunerative price for their

produce, and CAMPCO has been quite successful in stabilizing and maintaining the Arecanut market  at  a  very economical level, thus improving the economic conditions of Areca Growers.  CAMPCO started procurement initially in 5 Centers only and today, it operates through 118 Procuring  Centers throughout the States  of Karnataka and  Kerala.

 

CAMPCO operates through 14 Sales Depots in almost all the States in India at different places.

 

                     

Comparative figures of  Purchase & Sales for the last 5 years (April to March) are furnished below.

  

YEAR PURCHASE SALES
Qty. in Qtls. Value in Lakhs Qty. in Qtls. Value in Lakhs
2014-15

2015-16

2016-17

2017-18

2018-19

454974

511425

537207

524501

572096

124178.01

135779.71

130827.35

145292.88

158555.03

473464

470933

538066

505667

547673

129277.20

133992.84

136210.99

147245.00

159339.77

 

MEMBERSHIP AND SHARE CAPITAL

 

The Membership and Share Capital of this Cooperative as on 31/03/2019 is stated below.

 

CLASS OF SHARES NO. OF MEMBERS SHARE AMOUNT
Arecanut Marketing Societies 566 67,84,000
Other Societies and Cooperative Banks 4 1,03,000
Grower Members 112036 48,75,98,000
TOTAL 112606 49,44,85,000

 

 

DEPOSITS

We are collecting deposits from members. The details of deposit held as on 31/03/2019 is as follows.

 

                                   (Rs. in lakhs)

31/03/2019
 

Fixed Deposit

 

9521.25

MR Account 125.12
Call Deposit
Security Deposit 1917.20
Total 11563.57

 

BORROWINGS

The  Working  Capital  requirement of CAMPCO  is  met  by  a Consortium  of Bankers  with Syndicate Bank  as  Lead  Bank  and provided  total  Working Capital  of  Rs.300.00  Crores  to  this Cooperative.

 

RESERVE FUND & OTHER FUNDS

 

The Funds held in the Cooperative as at the end of 31/03/2019 is furnished here below.

                                                                                                                                                                                                                                      

                                                                                                Rs. in lakhs     

                RESERVE FUNDS & OTHER RESERVES

 

 

31,604.68

 

                       CAMPCO  CHOCOLATE   FACTORY

 

CHOCOLATE  PLANT

The   Factory    is  equipped  with  fully   automatic   and sophisticated machineries with annual licensed capacity of 22000 M.T.  The total investment at Factory is around Rs.78.95 Crores out of which the funds invested in the machinery is Rs.59.75 Crores.

 

PRODUCTION AND SALE

At present, the following products are manufactured:  PRODUCT LIST ENCLOSED

 

 

  1. A) CONSUMER PACKS                                                                             B) INDUSTRIAL PACKS

 

 

1

 

MELTO

 

1

 

COCOA MASS

2 CREAM 2 COCOA BUTTER
3 TURBO 3 COCOA POWDER
4 MEGABITE 4 MILK /DARK CHOCOLATE
5 ECLAIRS 5 MILK/DARK/

WHITE CHOCMASS

6 WINNER (Jar) 6 CHOCO CHIPS-MILK / PLAIN
7 KRUST 7 CHOCOPASTE
8 MELTO / MELLOW Éclair 8 MILK CHOCOPASTE
9 KRUNCHOS 9 PREMIUM CHOCOPASTE
10 ASSORTED GIFT BOX 10 CHOCODIP MILK / PLAIN
11 FUNTAN DARK
12 DIETIER
13 MILK MARWEL

 

We here below furnish the details of Sale of Finished goods and Semi-finished goods for last 5 years as follows.

 

YEAR CONSUMER PACKS INDUSTRIAL PACKS
QUANTITY

In MTS

VALUE

         Rs. in lacs
QUANTITY

In MTS

VALUE

      Rs. in lacs
2014-15

2015-16

2016-17

2017-18

2018-19

3514.07

2706.03

2510.41

1682.88

1835.80

7238.19

5643.16

4865.44

3698.44

3965.14

6376.73

7021.68

5805.99

6351.80

7031.22

12921.98

14120.26

13466.18

12358.19

13551.11

 

 

MARKETING ARRANGEMENTS

 

At present CAMPCO is having its own Chocolate Marketing team and the present set up is as follows:

 

  1. REGIONAL OFFICES

 

1 BANGALORE
2 VIJAYAWADA
3 KOLKATA
4 AHMEDABAD
5 GAZIABAD
  1. AREA SALES OFFICES
REGION-I REGION-II REGION-III REGION-IV REGION-V    
BANGALORE

HUBLI

VIJAYWADA

MADURAI

KOLKATA

CUTTACK

GAZIABAD AHMEDABAD

MUMBAI

MANGALORE INDORE
SHIMOGA

NEDUMANGAD

CALICUT

 

VAPOUR ABSORPTION MACHINE (VAM)

In line with our efforts to save electricity cost, we have installed one more unit of VAM (Vapour Absorption Mechanism)  in order to reduce the consumption of electricity by using steam and thereby the total  savings in consumption of electricity is  18 lakh Units per year.

 

TIE-UP ARRANGEMENTS

We are also making bulk Chocolate supply to Amul,Britania, Unibic Buscuits,ITC and Lotte India Ltd etc. Practicing the principle of cooperation between Cooperatives, we had already made a tie up arrangement with KMF & MILMA for production of  Chocolate Products. Our aim is to flood the Market with CAMPCO Products.

 

We have also started supplying Chocolates to Defence.

 

We have ventured into exporting of 7-10 Containers of Drinking Chocolate to African Countries every month, for which there is an overwhelming response and is well accepted by them.

 

DROP CHOCOLATE CHIPS  PLANT FROM M/S. ALPY, TURKEY

The New Drop Chocolate Chips Machine has been installed at Chocolate Factory, Puttur and is being utilized to produce Choco Chips to the maximum required capacity so as to take care of the demand and supply mismatch. The total production of Choco Chips from both old and new machine has increased from 90 MT to 180 MT per month.

 

ISO CERTIFICATION

CAMPCO Chocolate Factory  is certified with   FSSC 22000 (Food Safety Management System),  ISO 14001:2015 (Environmental Management System) and OHSAS 18001:2007 (Occupational Health & Safety Assessment Series) .  

 

 

CREDIT RATING

M/s. ICRA, an external Credit Rating Agency, have upgraded our Credit rating for Fund based working capital from ‘Stable’ outlook to ‘Positive’ outlook i.e. ‘[ICRA]A- (Positive)’ and for Non fund based working capital reaffirmed to ‘[ICRA]A2+’ in the FY 2018-19.

 

WIND MILL

 

Fossil fuel burning would raise the temperature resulting in disastrous climate change.  As a small step towards reducing this bad effect our institution has installed a wind mill at a cost of Rs.16.80 Crores at Hoovinahadagali Taluk and Chikkodi in Belgaum District which will produce about 40 lakh units of Electricity which is a pollution free green energy.  The electricity is being used at our Chocolate Factory which will considerably reduce the energy costs. With these installation our Factory’s 70% power requirement will be met by Green energy.

 

 

 

AGREEMENT WITH M/S. NESTLE INDIA LIMITED.

Entire range of M/s.Nestle Chocolate products were produced at CCF upto 31/12/2000.  Now they are manufacturing required quantity of Eclairs and White Chocolates in our Factory. We are also supplying Cocoa Butter & Powder required for their Ponda Factory.

 

STATE OF THE ART MASTER GODOWN AT KAVU, PUTTUR

CAMPCO is now building a Master Godown at Kavu, Puttur with around 1.31 lakh sq ft to take care of the warehousing and logistic issues for arecanut, cocoa, rubber, pepper and other products of the Co-operative. A Pepper Processing Line will also be incorporated in the Project.

 

 

 

RESEARCH AND DEVELOPMENT

A new  Research and Development wing has been opened  and  price behaviour analysis is being taken up as the first step.   On 20/5/1998 a Research and Development Trust with  Dr.D.Veerendra Heggade, Dharmasthala as its President and CAMPCO President as the Managing Trustee has been established. ARDF in association with CAMPCO and Vivekananda Engineering College has successfully conducted KRISHI YANTRA MELA-I 2009,II–2012,III-2015 & KRISHI YANTRA MELA-IV in 2019 respectively.

 

SKILL DEVELOPMENT PROGRAM

The Grower Members had expressed in the past about the dearth of Skilled Labourers in the Arecanut Plantations. To overcome this problem of Growers and also to create an opportunity for the unemployed youth, CAMPCO in association with the ARDF have arranged skill Development Programs including training on areca tree climbing at CPCRI, Vittal during December, 2018 & February, 2019. Total 53 youth have been trained and as per the feedback received, majority of them are earning a decent income through this skill.

 

MONETARY COMPENSATION IN CASE OF ACCIDENTAL DEATH

As a Social Security Measure and to instill security in the minds of the Member that Campco stands by the aggrieved member or his family during their time of grief and sorrow, a new Monetary Compensation Scheme has been introduced wherein an amount of ` 50,000/- will be paid on accidental death of the active Member or his dependents. A similar scheme of ` 50,000/- is also introduced to support the Workers’ family on accidental death of the Worker working in the field of the active Member. In addition, Campco extends medical benefits for Kidney transplant – Rs 1 Lakh, Open Heart surgery –Rs 50 thousand, Dialysis – Rs 10 thousand to members.

 

 

PROBLEMS

 

Domestic market for Arecanut is constantly facing problems due to heavy import from neighboring countries such as Burma, Sri Lanka, Indonesia, Thailand and Malaysia. As per information huge consignment of Arecanut is imported into India annually through legal and illegal ways. Even inferior quality goods are imported and used for Gutkha manufacturing. This has caused concern to the Areca growing community in India.

 

 

 

INITIATIVES AND DEVELOPMENTS

After succeeding in the stabilization of Arecanut prices, CAMPCO started catering to the other requirements of the Areca farmers. The next step was to start activities in the field of cocoa procurement, processing and marketing. Cocoa, an intercrop with Arecanut, was a source of supplementary income to the farmers. Because of the vagaries of the market, the returns from cocoa came down and CAMPCO stepped in to check the trend. It started purchasing and processing the cocoa and this resulted in the establishment of a Chocolate Factory in Puttur in 1986. Cocoa has thus been added in the name of CAMPCO.

 

CAMPCO has introduced sale of supari in small packets of 1 kg, so as to reach the consumers directly. There is a very good response and the business in this activity is showing an increasing trend.

 

CAMPCO has constituted a Research and Development Wing, which has a tie-up with SDM Ayurveda College, Udupi. They have developed medicinal products on an experimental basis such as Pooga Syrup and Pooga Trim, which will soon be marketed after obtaining proper licence.

 

 

Due to the seasonal, geographical and quality variations the Arecanut market is always uncertain & volatile. However, the CAMPCO Ltd., with its vast experience and holding capacity is able to ensure market stability to a great extent. Even now, the Areca market is in the fold of traditional system and is striving hard to venture into new trading regimes. There is a need to educate the farmers in the fair trade practices and co-operative spirit as a means for greater achievements.

 

As a part of diversification of activities, we have already commenced Rubber and Pepper procurement by identifying potential areas.  Additional collection centers will be opened in a phased manner.

 

CAMPCO made its advent as Saviour of Arecanut farmers. With the dynamic leadership of the President, the Board of Directors and the management, unstinted support of the CAMPCO’s Grower Members, exemplary and selfless services rendered by the staff and the co-operation extended by the traders and purchasers, the Institution has acquired a unique status in the country. It is hoped that the collective endeavor of the Management, the Staff and particularly the Areca and Cocoa farmers will enable CAMPCO to emerge as a leader in the nation’s Co-operative Sector.