The study undertaken in Dharwad and Belgaum districts of Karnataka revealed both the co-operative and private sector units marketed their finished products through only one channel i.e., 100 per cent of finished production both units are marketed through (Processor..... Distributor/Dealer....../Retailer Consumer) channel. The installed capacity of private sector unit is higher than co-operative sector unit but the percentage capacity utilization is less in the private sector unit. Therefore, the private sector unit should accelerate their capacity utilization by increasing procurement of raw milk, adequate planning and increased market sales. The number of byproducts in the private sector unit is comparatively less than co-operative sector unit. Therefore, the private unit should increase product mix to increase their sales realization.