KMF Internship Project Report - 81922739

MANMUL
EXCUTIVE SUMMARY
India is the world's highest milk producer and all set to become the world's
largest food factory. The milk industry in India is witnessing a stupendous growth.
The production of liquid milk touched a high of 85 million tones in 2001-02 placing
the industry first in the world.
Since 1991, after liberalization, anybody and everybody have been free to
enter the dairy industry and to reap benefit from the markets that Domestic
federations created and nurtured with their sweat and blood. Multinationals, backed
by their surplus capital, are seeking a hefty share of Indian milk and milk products
market. At the same time, regional private companies have been able to penetrate
markets on the strength of aggressive pricing made possible by cavalier treatment of
taxation laws and quality standards.
This Internship Training was undergone to get the practical exposure of Milk
Industry. The Internship program was undergone in Mandya Milk Union Ltd.,
(MANMUL), an AMUL Patterned Dairy cooperatives, which is supervised by KMF.
OBJECTIVES OF THE STUDY
The principle objectives of the study is to get interrelate the theoretical aspects
with practical things that are moving in industry, and studying the organization as a
whole. Some important objectives of the study are:
 To get the practical exposure in the corporate world.

 To have a proper balance between the theory and practical knowledge.
 To study Origin, Growth, Vision, Mission, and Status of the Organization.
 To study the functional departments exist in the organization.
 To evaluate the effectiveness of the organization.
 To study the problem areas in the organization.
 To provide some valuable suggestions to improve the efficiency in the
organization.
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AISHWARYA INSTITUTE OF MANAGEMENT STUDIES
AND RESEARCH, Bangalore
MANMUL
SCOPE OF THE STUDY
The study helps to get an overall idea regarding the various departments in the
organization and overall function of organization. This organization study mainly
focuses on organizational setup, overall performance, departmental performance etc.
Apart from this
 To get a practical vision of the organization apart from the theory which have
been learned in the class
 To understand the actual working condition
 To get in touch with the industrial and organizational environment
Assumptions of the study:-
This study on the following assumptions:
 The data given by the officials are unbiased.

 The data collected from various secondary sources are true.
Limitations of the study:-
 Because of official secrecy the managers of the company are not ready to give
certain data.
 Could not get sufficient time to intract much with the senior managers as they
were always busy with their works.
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Methodology of the Study
The required information and data was assimilated through two sources:-
Primary Data:-
 By observing the various departments of the organization.

 By interacting with various employees in the organization.
Secondary Data:-
 From the Company Manuals.

 Management Books.
 Internet.
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INDUSTRIAL PROFILE
General Information of Milk & Milk Industry:
The progress of mankind and civilization has, since history began, been closely
alike with his diet. Even today the leading nation and nations capable of becoming
strong are those, which can obtain food in abundance for their people.
It has been said that cow is a machine that converts raw materials (plants) in
food in a surprisingly efficient manner. The method by which cattle are managed in
order to produce milk can be accomplished in many ways. In order to be most
successful, dairymen or those contemplating entering the business should carefully
survey to produce under local conditions.
Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the
complete milking of one or more healthy milch (Milk giving) animals. It is an almost
an ideal food. Although milk is commonly thought as a beverage, it is natures most
nearly prefect food and contains more actual solids than many so called solid foods,
especially vegetables. Milk is the only food, which is designed by the nature solely as
food. An adequate consumption of milk can correct dieting deficiencies for most
people to have strong and healthy bodies. It is a delicious and appetizing food for all
ages as well as being healthful.
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CONSTITUENTS OF MILK
PERCENTAGE
WATER 87.0%
BUTTER FAT 4.0%
CASEIN 2.8%
ALBUMIN 0.5%
LACTOSE (MILK SUGUR) 5.0%
MINERALS 0.7%
Milk constituents are divided into two groups, namely, water and solids. The
constituents other than water are called the total solids (TS). The total solids minus
the butterfat are termed as the solids-non-fat (SNF). All the constituents except the
butterfat are known as the milk serum.
The major constituents of milk are water, butterfat, protein, lactose and minerals. The
minor constituents are vitamins, pigments such as carotene, fat-soluble pigment
lactoflavin, and water-soluble pigment lactoflavin, cholesterol, phospholipids
(lecithin), and sterols, enzymes such as lipase, galactase, diastase etc, gases such as
carbon dioxide, oxygen and nitrogen and nitrogenous substances such as uric acid,
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urea’s nitrogen and traces of amino acids. The true constituents are milk fat, casein
and lactose.
Milk is absolutely essential for the welfare of the human race, the cow has
been rightly called “the foster mother of the human race” and she is found in most of
the civilized countries of the world.
Growth and development of the Industry
Until the 1940, there was very little published information on the method of
preparation and use of these products. The credit for the first publication on the
subject goes to Dr. W.B.Davis, the first director of the industry research, Indian Diary
research Institutes (now National), Bangalore. Within the span of these four decades
since his book appeared, considerable research has been places in indigenous Dairy
products.
Present status of the industry
The Indian dairy industry is heading towards new century with an accelerated
and positive momentum. With unprecedented growth in milk production by over two
and a half time in the also two decades to about 58.8 million tones in 1992, India has
emerged as the largest milk producer in the world with an annual milk production of
76 million tones. Food processing industry ranks as the fifth largest industry in the
country. Though the milk and milk products have 85% business in unrecognized
sector, it is having only 7% growth per year.
Changing Pattern of the Industry
The demand for milk and milk products in the country is on the rise. The
increase in purchasing power and pace of urbanization is leading to a change in the
lifestyle and consumption habits of the households. The current trends indicated that
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44% of the total population would be urban. This will definitely lead to an increase in
consumption of dairy products.
The domestic market for butter and ghee is growing at a healthy rate of over
10% per annum but the same may not be true in case of an international market. The
production and export of butter has witnessed a major decline in some of the
developed countries. The situation is now alarming to the industries which are having
international market for this product. These companies definitely have to think about
other potential products that are gaining steady growth all over the world.
The production of dried milk and related products has become an increasing
important segment of dairy industry. The concept was started to utilize the surplus
milk manufacture of products having good shelf life at room temperature in the flush
season. Today, a number of industries are involved in the manufacturing of variety of
dried products comparable to their western counterparts. A range of products is
widely accepted for direct consumption or their different applications in various
products.
A major quantity of milk output is converted into varieties of traditional dairy

products catering to regional tastes. These products are produced in large quantities
but on a small scale by the organized sector, by using the old process that is empirical
in nature. There are so many popular products but still those are being prepared in
households. Hardly, efforts have been made to capture and capitalize in this area.
STRATEGIES TO BOOST INDIAN DAIRY PRODUCTS

GLOBALLY
 Improve the quality of the products.

 Value addition into widely accepted products.
 Improving productivity and reducing the cost of production.
 Building brands.
 Public relations and strict measures to avoid misinformation, viz.,
superiority of cow’s milk to buffalo milk synthetic milk.
 To lead in milk production.
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 Research and Development.

 Energy conservation.
 Utilization of desirable constituents from the waste rather than draining.
COMPANY PROFILE
Karnataka Cooperative Milk Producers' Federation Limited (KMF)
KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-

operatives. It is the third largest dairy co-operative amongst the dairy cooperatives in
the country. In South India it stands first in terms of procurement as well as sales. The
Brand 'NANDINI' is the household name for Pure and Fresh milk and milk products.
KMF has 13 Milk Unions throughout the State which procure milk from
Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in
various Towns/cities/Rural markets in Karnataka.
The first ever World Bank funded Dairy Development Program in the country
started in Karnataka with the organization of Village Level Dairy Co-operatives in
1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka
from 1974-75 with the financial assistance from World Bank, Operation Flood II &
III. The dairy co-operatives were established under the ANAND pattern in a three tier
structure with the Village Level Dairy Co-operatives forming the base level, the
District Level Milk Unions at the middle level to take care of the procurement,
processing and marketing of milk and the Karnataka Milk Federation as the Apex
Body to co-ordinate the growth of the sector at the State level.
Coordination of activities among the Unions and developing market for Milk
and Milk products is the responsibility of KMF. Marketing Milk in the respective
jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk
among the member Milk Unions is monitored by the Federation. While the marketing
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of all the Milk Products is organized by KMF, both within and outside the State, all
the Milk and Milk products are sold under a common brand name NANDINI.
List of Co-operative Milk Union Producer’s Societies Association
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Mandya Milk Union Ltd.,
Mandya Milk Union was registered in the year 1987. The Product Diary,
Gejjalagere was then managed by Mysore Dairy. In the year 1988, The Product Diary,
Gejjalagere was handed over to Mandya Milk Union.
MANMUL with its headquarters at Gejjalagere has got liquid milk plant of 2.5
Lakh liters capacity and a powder plant of 10 MT capacities per day through the
assistance of NDDB. It has two chilling centers at Nagamangala and KR Pet. The
diary has a spread of 47 acres of land at Gejjalagere and 3 acres each at KR Pet and
Nagamangala.
MANMUL was a part of Mysore & Tumkur Milk Union till 1987. In 1988
Union started marketing about 5,000 liters per day which gradually extended to about
15,000 liters. There came a boom through the advent of milk marketing in Bangalore
city from 1993. As on today the Milk sales is about 2.20 lakhs liters per day(1.24
lakhs liters in sachet and 0.35 lakhs liters in bulk) with annual turnover of Rs.65
crores alone on this account out of the total Rs.100 crores turnover through the sales
including milk products like Skim milk powder (SMP), Butter, Ghee, Burfi, Lassi,
Curds etc. Once MANMUL got hold of the Bangalore marketing, it has a steady and
continuous profits from 1994-95.
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MANMUL
Mandya District Co-operative
Milk Producers' Socieities Union Ltd.

Product Dairy
Gejjalagere- 571 428
Maddur Taluk, Mandya.
Ph:08232-274571 Fax: 274593
E-mail: MANMUL@yahoo.com
MANDYA Dairy, complex facts at a Glance.
1. Establish : 1988
2. General
Area of the Dairy : 47 acres
Handling capacity : 200000 LPD
Estimated cost of Building : 1.83 crores
Number of employees : 410
3. Milk Procurement
Dairy co-operative societies functioning : 1150
Dairy societies registered : 994
Procurement routes : 61
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Chilling centers : 2
Districts covered : 1
Taluks covered : 7
Villages covered : 1182
4. Milk Distribution
Distribution routes : 56
Districts covered : 3
Selling agents : 750
Selling agents in urban : 486
Selling agents in rural : 264
Milk parlors : 21
VISION OF MANMUL
Quality assurance from cow to consumer.
To vanish the scarcity of milk.
To fulfill the objectives of the White Revolution.
Product diversity
Avoiding post harvest losses.
To strengthen the living standards or rural people
To compete with MNCs and private dairys with better quality of milk
and milk products and in the process sustain invincibility of cooperatives.
MISSION OF MANMUL
Procuring the raw milk from the local farmers at fair prices.
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Pasteurization and homogenizing of the procured raw milk.
Producing the other milk product.
Transporting the pasteurized milk in various quantities from processing plant

to the urban area.
Supply milk to the consumer at a reasonable rate.
Developing good infrastructure facility.
OBJECTIVES OF MANMUL
1. To encourage rural farmers to engage in dairy farming and producing more milk
and good quality of milk at least cost.
2. To provide assured and remunerative market for the milk produced by the farmer
members.
3. To provide good quality of milk and milk products to the people of urban area by
scientifically processing the milk obtained from rural area.
4. To create harmonious environment for the human resource of the union can
perform at its best, being a communication bridge between producers and consumers.
5. To build village level institutions co-operative sector to manage the dairy

activities.
In order to fulfill these objectives, the union is constantly engaged in working towards
improvements of the business as well as the welfare of the producer members. This
has resulted in greater performance on commercial as well as institutional fronts.
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MANMUL
QUALITY POLICY
“Every employee of mother dairy will strive for customer satisfaction

providing hygienic quality milk and milk products at competive rates and timely
delivery through continual improvement”
Special features of MANMUL:
MANMUL is the first among the dairy plants in south India to obtain ISO –
9001:2008
From International Standard organization. And HACCP-15000 certificate from the
bureau of Indian standing and is in continuous process to further obtain ISO- 22000
certificate.
An ‘extra grade certificate has been awarded to milk powder manufactured by the
milk powder plant.
3.1. Background:
In June 1947 are integrated project way launched in Karnataka to restructure

and recognition the dairy industry on the corporative principle and to lay foundation
for new direction in dairy. Development work on the first ever, World Bank aided
dairy development project was initiated in 1975. Initially the project covered southern
districts of Karnataka and Karnataka dairy development corporation was setup to
implement the project.
The multi level, multi unit organization with total vertical integration of all
dairy development activities was set up with cooperative societies at grass rout level,
milk union at the middle level in the dairy development cooperation at the state level
as an apex body, vested with responsibility of implementing Rs.51 corers project.
At the end of September 1984 the world bank aided project ended and the
dairy development activities continued under operation flood 2.
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The activities were extended to cover the entire state expect costal taluks of
Uttarakannada district and the process to dairy development was continued in the
second phase force April 1984.KMF came in to existence in may 1984 as a succenor
to KDDC. After the closure of operation flood II, extended on 31-3-1996. The spills
over work are financed by NDDB force 1-4-1996 under different terms and
conditions.
3.2. NATURE OF THE BUSINESS
Co-operative Society
The philosophy of this co-operative milk producers’ organisation is to

eliminate middlemen and organize institutions owned and managed by milk
producers, by employing professionals. Achieve economies of scale of rural milk
producers by ensuring maximum returns and at the same time providing wholesome
milk at reasonable price to urban consumers.
It is a voluntary association of persons who work together to promote their

economic interest. It works on the principle of self-help as well as mutual help. The
main objective is to provide support to the members. Nobody joins a cooperative
society to earn profit. People come forward as a group, pool their individual
resources, utilize them in the best possible manner, and derive some common
benefit out of it.
Characteristics of Co-operative Society

i. Open membership
ii. Voluntary Association:
iii. State control
iv. Sources of Finance:
v. Democratic Management
iv. Service motive
v. Separate Legal Entity
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vi. Distribution of Surplus:

vii. Self-help through mutual cooperation
Nature of the business carried
Procurement:
The Mandya dairy collects milk from villages through co-operatives. There
are 1150 co-operative societies producing units.
The production department of Nandini milk products is located in the KMF

MANMUL dairy. The production department in Nandini milk products performed the
function of developing a procedure transform a set of input elements like man,
machine, material, money, into specified set of output element like finished goods in
assigned quantity and best quality in order to achieve the organization successfully.
MANMUL most of the milk from societies and K.R.Pete, Nagamangala

chilling centers of milk union and Milk Procurement Dairy co-operative societies
functioning 1150, Dairy societies registered 994, Procurement routes 61, Chilling
centers 2, Districts covered 1, (Taluks 7) covered and
it includes Villages covered 1182
Production:
MANMUL has a unique nature of homogenizing the milk and selling it to the
consumers through bulk vending booths and FRP tanks. In addition to production
toned milk in sachet and produces full cream milk homogenized cow’s milk, double
toned milk, in sachet and product like Butter, ghee, curds, and buttermilk in sachets.
The Area of Operation
MANMUL not only operates in Mandya districts, but, also operates in some parts
of Bangalore rural and Bangalore Urban districts. It operates 733 distribution centers,
all the agents besides, there are 70 milk parlour maintained by the dairy
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3.3. Mile Stones of KMF
 1955: First dairy in Karnataka set up at kudige, kodagu district on 08- 01-
1955.
 1965: Biggest dairy in Karnataka with 1 lakhs liters per day liquid milk
processing factory set up at Bangalore.
 1974: World Bank aided Karnataka dairy development project implemented
19-06-1974 to 30-09-1984.
 1974: Karnataka Dairy Development Corporation (KDDC) was established on
1-10-1974.
 1975: First spear head team is positioned on 01-07-1975. Government dairies
transferred to KDDC on 01-07-1975. First registration of milk producer’s co-
operative society.
 1976: First registration of the union on 23-11-1976.
 1980: Karnataka milk products limited established on 01-03-1980.
 1983: Corporate brand name “NANDINI” given on 13-02-1983.
 First cattle feed plant commissioned at Rajankunte on 21-03-1983.
 Capacity expanded from 100 MT to 200 MT on 01-06-1997.
 1984: Operation flood-II implemented on 01-04-1984 to 30-09-1987.
 1984: Karnataka milk federation is born on 01-05-1984.
 1984: KDDC transformed into KMF on 01-05-1984.
 1984: KMPL assets transferred to KMF on 01-02-1984.
 1984: Product dairy, Dharwad commissioned on 12-09-1984.
 1984: Mother dairy started functioning on 07-12-1984.
 1985: Remaining government dairies transferred to KMF on 14-02-1985.
 Dairies at Hassan, Tumkur &Mysore transferred to district milk unions on 01-
06-1987.
 1988: Dairies at Bangalore, Gejjalagere, Dharwad, Belgaum and Mangalore
transferred to district milk unions on 01-09-1988.
 1988: Training center at Mysore, Dharwad, and Gulburga transferred to
unions.
 1989: Milk supply to Calcutta mother dairy through railway tankers from
mother dairy, Bangalore on 03-03-1989.
 1989: Centralized marketing organized on 01-05-1989.
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 1989: Last milk shed registered as a union (Raichur & Bellary union) on 12-
12-1989.
 1991: Karnataka Holstein Friesian breeders association [KHAFBA ]
Registered on 25-03-1991.
 1991: Chilling & processing plants at Bijapur, Gulbarga, Bellary, Shimoga
and Kolar transferred to district milk union on 01-08-1991.
 1991: First pilot project on embryo transfer technology implemented.
 1992: Commercial production & marketing of NANDINI flavored milk
lunched on September 1992.
 1993: Milk procurement on a single day crosses million kg levels in December
1986 and average milk procurement per day for the year crosses million kg
levels.
 1994: Liquid milk sale crosses one million liters per day.
 1995: Varieties of new Branding products viz. Nandini pannier, Burfi, Kova,
& Sweet Curds launched.
 1996: Foundation stone laid for cattle feed plant at Hassan on 09-02-1996.
 Production started on 09-09-1998.
 1996: Foundation stone laid for piuch film manufacturing unit at munnekolalu
Bangalore district on 01-03-1996. Production started on 20-10-1997.
 1996: Foundation stone laid or mega dairy & new powder plant at Bangalore,
mini dairy scheme & other development programs on 01- 11- 1996.
 1997: Inauguration of ice cream manufacturing unit at mother dairy premises,
Bangalore on 13-06-1997.
 1998: Installation of LN2 distribution system for Karnataka state on oct. 1998.
 1998: Launching of new products
o Jamoon Mix
o Mysore Pak
o Tetra Fino Packaged Nandini “Good life” Milk
o Badam powder
 O Good life high fat milk 2000: ‘Mega Dairy’ started functioning in
Bangalore union on 17-12-2000.
 2001: Starting of sales depot at mangalore in addition to depots at Bangalore,
Hubli, & Tirupathi on 02-09-2001.
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 2002: Adoption of “Mnemonic symbol” in Bangalore, D.K. & Mysore on 05-

01-2002.
 2002: Release of 50gm SMP [skim milk powder] in metalized polypack on 15-
02-2002.
 2005: Construction of new ice cream plant in mother dairy Bangalore.
 2006: Release of new tetra fino package for flavored milk and butter milk.
 2007: Release of new homogeneous milk.
 2008: Dairy weights, Nandini highest milk powder ice creams launched,
Sundae, corn kulphi Nandini curd.
 2009-Gulbarga Dairy & Milk Marketing taking over by KMF
 2009-Nandini has Won “The Most Valuable Brand in Karnataka Award” in
the 'Sunday Indian & IIPM Regional Excellence Awards 2009'
 2009-Channarayapatna Chilling Centre inaguration - 1 LLPD
 2009-New Sales Depo Started at Gulbarga
 2009-All NMP Products in new packs - Mysore pak,peda,burfi,Badam
powder,Jamoon mix(Dec'09); Paneer,Khova(Mar'09)
 2009-Launch of Good Life variants in Cuttack,Orissa,Tiruchi(Tamilnadu)
 2009-naguration of Indinagar Shoppee cum Cold Storage by KMF Chairman
 2009-UHT SUPPLY TO Andaman & Nikobar
 2009-Chief Minister Sri B.S.Yeddyurappa,was conferred with "Ksheera
Bandhu" Award at State level Milk Producers Convention at Dabaspet,
Tumkur for GOK's Support to producers with Rs.2 incentive per litre of milk.
 2010-New Sales Depo Started at Mysore
 2010-Foundation Stone Laying for HOSTKOTE DAIRY
 2010-MOU for commissioning of Nandini Parlours in IOCL retail outlets
signed
 2010-Peak Procurement of 41.83 LKPD
 2010-Starting of Procurement routes at N.R.Pura,Koppa Taluk(Chickmagalur
District)
 2010-Hosting of new KMF website wwww.kmfnandini.coop with online order
facility.
3.4. INFRASTRUCTURAL FACILITIES
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Facilities for the employees
1. Quarters, hospital etc. facilities and allowances are given.

2. Canteen facility is made available to the employees.
3. Promotion facilities available.
4. Permanent workers get one increment every year.
5. Factory provides 2 pair of uniforms and 1 pair of shoes every 2
year to the workers.
6. Bonus is 8.33% based on workers salary.
7. Bank facility ( DCC ) bank
8. Compensations and medical facilities are available if any accident
occurs
3.5 . COMPETITORS PROFILE
After liberalization, entry barriers in the dairy industry eased for new entrants.
Many private players enter and exit the market very often. The main competitors for
MANMUL products are Arogya,
 Heritage, Jercy
 Dodla
 Thirumala
 Real Fresh
 Milkway
 Neelgiri
 Ujwal.
Plans of major companies like Reliance, ITC to enter into milk market in
future.
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3.5. FUTURE GROWTH AND PROSPECTS
1. To active more co-operative societies.
2. To procure more than 4.0 lakhs kilograms of milk.
3. Introduce new products.
4. Implementing vision 2011 with the help of NDDB.
5. Complete computerization of the activities of the union.
6. Establishment of more Bulk Milk Coolers.
7. Modernization of main dairy.
8. Extend the plant with the help of NDDB.
9. Increasing the plant capacity from 2, 00,000 LPD to 5, 00,000 LPD.
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Pasteurised Toned Milk

500ml, 1000ml. PRODUCT PROFILE
250ml, 500ml, 1000ml.
The following are the Products and their quantity offered by

MANMUL
Shubham Milk 200 Gms, 500 gms

50,100,200,500&1000Grams Curd 200ml, 500ml
500 Gms

Ghee Butter Milk 22

AISHWARYA INSTITUTE OF MANAGEMENT
200ml . STUDIES
50ml, 100ml, 200ml, 500ml,
1000ml and 15 Kg Tin.
MANMUL
50,100,200,500grms & 1kg 500grms

50,100,200,500grms & 1kg 500grms
. 250 Gms 23
. 250 Gms
MANMUL
MILK:-
Full cream milk:

It is wholesome and healthy . packed with ebergy and nutrition that is essential for
growing kids. It makes them stronger from within and keeps them active and healthy.
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Toned milk :
A perfect blend of good health and wholesome taste. It is an ideal choice for
people in search of a nutritive balanced diet that does not compromise on taste. It is
the right way to stay fit and fine. Jolly and cheerful.
Double toned milk :

Tasty and nutritious, with low fat content. A dream come true, especially for
all calorie conscious people who love the taste of ,milk but are worry of its cream,
content. Double Toned Milk complements your daily workout perfectly.
Standardized milk :
Tasty and malaidar, Enjoy its richness as it has balanced amount of cream –
neither more nor less – just right at affordable price.
Skimmed milk :
In Skimmed Milk as much as fat is removed, yet ey continues to supply all the
nutrients that Full Cream Milk does.
Flavored milk :
MANMUL Dairy Flavored Milk captures all the goodness of MANMUL
Dairy’s pure and fresh milk combined with the magic of special flavours. Made from
Double Toned Milk, and available in Kesar Elaichi, Chocolate and Vanilla flavours –
these drinks are light and refreshing and capture the great taste of these unique flavors
without being heavy or too filling. These tasty drinks. Available in 300 ml and 500
ml, are perfect foe any occasion.
It is longer shelf milk variant. It is treated with ultra high temperature and it
has a shelf life of 60 days without refrigeration available in 500ML packs.
Homogenized Milk :
It is pure that is homogenized and pasteurized. It is available in 500ML packs.
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Ghee:
Ghee is made from buffalo milk and has every quality that you would
look while purchasing. The formulation developed delivers superior flavor and aroma.
All the packs are carefully packed to ensure that the rich flavor and aroma of
MANMUL Dairy Ghee gets sealed in and remains intact for you to savors and enjoy.º
Butter:
It is delicious, creamy and so easy to spread available in 100 and 500

gram packs, MANMUL Dairy Butter is produced under totally hygienic conditions
using MANMUL Dairy’s wholesome milk. Butter is a dairy product made by
churning fresh or fermented cream or milk. It is used as a spread and a condiment, as
well as in cooking applications such as baking, sauce making, and frying. Butter
consists of butterfat, water and milk proteins. Butter remains a solid when
refrigerated, but softens to a spreadable consistency at room temperature, and melts to
a thin liquid consistency at 32-35 ºC (90-95 ºF).
The density of butter is 911 kg/m3 (1535.5lb/yd3). lt generally has a pale
yellow color, but varies from deep yellow to nearly white.lts color is dependent on the
animal’ s feed and is commonly manipulated with food colorings in the commercial
manufacturing process, most commonly annatto or carotene.
Curd:
Curd is a dairy product obtained by curdling (coagulating) milk with rennet or

an edible acidic substance such as lemon juice or vinegar and then draining off the
liquid portion (called whey ). Milk that has been left to sour (raw milk alone or
pasteurized milk with added lactic acid bacteria) will also naturally produces curd,
and sour milk cheese is produced this way. The increased acidity causes the milk
proteins (casein) to tangle into solid masses, or “curd”. The rest, which contains only
whey proteins, is the whey. In cow’s milk 80% of the proteins are caseins.
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MANMUL
Nandini curd, made from pure milk, thick and delicious. It is available in
200Gms and 500Gms sachet
Milk powder
To facilitate conversion of southern Milk Unions in the project area,

Karnataka Milk Federation has established a powder plant during the year 2002
with an outlay of Rs 22.51 crores with a capacity to covert 3 lakh liters of milk
into 30 tones of milk powder. The surplus milk of Bangalore, kolar, Mysore,
Mandya, Hassan and Tumkur Milk Unions is being accepted for conversion.
This benefits the Member Milk Unions financially by way of notable decrease
in transportation cost. The quality of milk powder manufactured in this unit is
of international standard and has been exported during last year through private
contractors.
Milk processing unit
Raw chilled milk reception through

insulated tankers
Weighted at manmul dairy weigh bridge
Reception dock Platform test &chemical quality analysis

by QC personnel
Filtered
Pasteurization
Re-chilling through PHE 6-8 deg’C
1. Balance tank
2. Regeneration 1
Stored3.inFilter
raw milk silos at 6-8 deg’sC
4. Regeneration 2
5. Heating & holding
6. Regeneration2INSTITUTE OF MANAGEMENT STUDIES 27
AISHWARYA Glycol chilled 2 to 4 deg.C
7. Regeneration 1
AND RESEARCH, Bangalore Packed & storage standardization&loaded
Storedin&cold to tankers
in PM silo 4 for
8. chiller storePre-pack
below 10 Bulk BVB & FRP suppliers
Other dairies
Dispatched to market to 6 deg.C
Milk issues
MANMUL
Flow chart of milk movement
Security Entry
Weigh Bridge
Reception Dock Quality testing
Uploading through chiller
Raw Milk silo
Pasteurization & Standardization
28
MANMUL
Processed Milk Silo’s Quality Testing
Issues
Pre-pack Skimmed ICP cream Bulk milk Flavored

milk dispatch milk
Cold
Butter
Powder
section
plant
Market
Bulk
packing
Butter processing unit
Cream from the cream separator

is taken to pasteurizer & heated at If result +ve
8.5deg.c to 90 drg.c reprocess
CCP 3 Phosphates test by QC
Cream tank where stored at a

temperature of 10 deg.C to 15
deg.C for 4 to 6 hrs If result +ve processed
29
MANMUL
Churning of creaming & separation

If result drain off
of butter & butter milk at continuous
butter making machine
Quality checked by QC for

COB butter milk.
Butter collection in trolley
If satisfactory in packed in 25
kgs. Boxes & stored in cold
store at -5 to 15 deg.C
Quality check for FAT

% moisture by CPC
If unsatisfactory, taken for
ghee processing
5.1 ORGANIZATION STRUCTURE,
Organization structure is the skeleton of the organization. It prescribes the

formal relationship among various position and the activities. Arrangements about
reporting, relationship, how an organization member is to communicate with other
members, what roles and procedures exist to guide the various activities performed by
the members of all the parts of the organization structure.
Organization structure plays a vital role in achieving the organizational goals.

So, organization structure should be properly designed to facilitate the smooth
functioning of the organization.
30
MANMUL
Organization structure of MANMUL consists of BOD’s at the top. Then

President, under president, Managing Director who is the superior authority in the
dairy and he is the person who is responsible for smooth functioning of the
organization. After Managing Director there are managers and Deputy Managers of
various departments who are responsible and accountable for the activities of their
respective departments. Under that there are subordinates, supervisors and employees
who are directly linked with department managers. The following chart will gives a
clear idea about the organization structure. (See next page)
Board of Directors (BOD’s)
President
Managing Director
Manager Finance Manager Asst Mgr. Marketing Asst Mgr Admin

Manager P&I Manager MIS
Production
ORGANIZATION STRUCTURE
Deputy Manager MIS Officers Deputy Managers Superintendent Admin Officer
Asst. Managers Asst Manager Field Inspectors Superintendent
Dy. Mgr. A.H Dy. Mgr. A.I Dy. Mgr. F&F Dy. Mgr. P&I
Asst. Mgr. P&I

31
MANMUL
5.2 FUNCTIONAL DEPARTMENTS
Production Department
Quality Department
Packing And Dispatch Department
32
MANMUL
Engineering Department
Stores Department
Administration Department
Finance Department
Marketing Department
Mix Department
Procurement And Input Department
Chilling Center Work
Security Department
5.2.1. PRODUCTION DEPARTMENT
Workflow model of production system
Production OUTPUT
INPUT
Process
33
MANMUL
 Operation
 Raw materials
or processes
 Men
 Inspection
Products
 Machine
 Storage
 Power Energy
 Production
planning &
 Plant & control
] Facilities
Dairy wing
1. Milk Reception Dock

Milk reception collects the milk from the co-operatives. The Raw milk comes in
vans containing milk cans enter input dock. The cans go one by one through a
machinery track, workers check the cans, and writes the number of liters of milk
contained in the cans.
2. Quality control
Quality control mainly concern with the quality check up of each milk collected
from co-operative societies. The Quality control department takes the sample of the
milk and its analysis the fat and divides it, like fat and SNF (Solid Not Fat).
3. Milk Processing
The collected raw milk is chilled in the system at 5° C for bringing down the
temperature of atmospheric temperature. After chilling, the milk is transferred to the
Silos (container) and milk is standardized. After milk standardization, the milk is
drawn from silos for pasteurization. In pasteurization process, the milk is heat to 75°
C and cooled to 5° C, and then it is stored in silos again. The pasteurized milk is
transferred to cream separation tank. Here, the cream is separated and stored in cream
storage tank. The cream separated milk is passed to further process.
34
MANMUL
Separator
In separator fat % is removed from milk (raw milk contains 4.3 % of fat and
dairy milk packet contains mainly 3 % of fat). In separator, it separates milk on fat
basis like Tonned milk 3 % fat and 8.5 % SNF.
The required quantity of standardized and pasteurized milk is transferred for further
production of milk products like Butter, Ghee, Milk powder, Peda etc.,
After the above mentioned process is completed the milk and milk products
goes to packing section. They are packed and dispatched according to the shifts.
5.2.3.QUALITY CONTROL DEPARTMENT
Function
This section takes care of the quality of the milk bought from the societies and
the chilling centers and also the quality of various by-products of milk. Initially tests
are conducted to see if the milk is good for using, if suspected of being bad, it is kept
for further tests. The fat test and SNF test are conducted to obtain the percentage of
SNF and fat, based on which the payment is made to DCS.
If the fat and SNF percentage is more, incentive is added to total amount due.
Here, in this department tests are also conducted to see if the procured milk is
adulterated with salt, sugar and soda by the producers. The criteria for quality control
are as per Prevention of Food Adulteration Act (PFA).
Analysis of milk (Platform test for milk)
1. Argunoreptic test
This test is conducted to find out smell, sweet and flavor of milk.
2. Clot On Boiling Test (COB)
35
MANMUL
This test is conducted to determine heat stability of the milk. This test is conducted as
platform test
3. Adulteration Test
This test is conducted to see if the procured milk is adulterated with salt, sugar
and soda by the producers.
4. Fat and SNF (Solid Not Fat) Test.

This is done to determine the amount to be paid to the suppliers of milk. This
conducted as a laboratory test.
Analysis of Curd
For curd also various quality control tests are conducted in the laboratory. The
various tests conducted are Acidity Test, Yeast and Mould Test, Coliform Test, Body
and Texture, Flavor Test, Way separation Test and Observation test. And also Fat and
SNF test are also conducted to know the Fat and SNF percentage.
Analysis of Butter
For Butter also various quality control tests are conducted in the laboratory.
The various tests are Butter Fat test, Curd Content test, Moisture test, Acidity test or
Free Fatty Acid (FFA), Yeast and Mould test, Coliform counts. Moisture test is
conducted to determine the moisture content of butter according to predetermine
levels of moisture content in the butter.
Analysis of Ghee
The various quality control tests are conducted in the laboratory, for the
analysis of ghee are moisture test, free fatty acid (Acidity) test, RMV (Richards
Messel value), PV (Paulske Value) test and fat test. Here, the fat content, acidity
36
MANMUL
percentage and moisture percentage of the ghee is compared with the predetermined
levels of the fat contents, acidity and moisture test.
Structure:
Manager Q.C
Dy. Manager
Asst. Manager
Technical Officer
Senior Chemist
Chemist
Lab Technician
Helper
5.2.4. PACKING AND DISPACH DEPARTMENT
The products manufactured have very short life and therefore the section
heads to plan for rapid dispatch to the market before it loses its nutritional value.
Considering the management has planned to club the packing section with the
production department so that the time taken for the finished product to the packing
section and from there to the stored is minimized. Packing section is equipped with
laborers, weighting machines, big iron and still racks to place produce fill in trays,
shopping, cutting machine, refrigerator, etc.
5.2.5. STORES SECTION
37
MANMUL
Storage is an essential of marketing process. This involves the proper

arrangement for retaining the goods in perfect state till they are need by the
consumers and are to be taken to the market place, to people handle the store
deportment. One person in known as officer and other is his assistance who maintain
books such as stock ledger, stock inventory method.
As soon as the stock arrives, the stores keepr checks the quality and enters the
same into their receipts ledger, where the job of the accounting for a stocks
department which requires this information.
FUNCTION OF STORES DEPARTMENT
 To place or send a requisition of materials to the purchase department on

time.
 Receiving the incoming materials and to record the receipts in general

ledger and to carry out the inspection work properly.
 After the inspection work of both quality of materials, are placed properly
on the basis of their nature and to record them in (bin card) rejection
materials are sent the requirements or required type of quality materials.
 Proper maintenances of stores records.\
 Proper maintenances of stores records.
 To issue the materials receipt of duty signed or authorized requisition note

from the respective department.
 To protect stores against damage theft etc.
38
MANMUL
5.2.6. ENGINEERING DEPARTMENT
The unit which require machinery, power consumption steam, chill water etc,
required an engineering department separately to maintain the power supply and
avoid breakdowns of the machinery and other necessary technical assistance required
for the production. This unit required all the above mentioned power and energy for
the manufacturer of the products and therefore has organized a separate department
called the “Engineering department” headed by a technical officer.
Sections of engineering department
 Boiler section
 Electrical section
 Mechanical section
 Refrigeration section
39
MANMUL
DIRECTOR DM CIVIL
MANAGER DAIRY SUPERVISOR

(ENGINEERING)
DEPUTY MANAGER
(ENGINEERING)
TO TO TO DS
(BOILER) (REFRIGERATOR) (MECHANICAL) (ELECTRICITY)
TECHINICAL TECHNICIANS
OFFICER
DAIRY
OPERATIONS
AM (PROJECT)
HELPERS
transport
40
MANMUL
5.2.7 ADMINSTRATION AND PERSONNEL DEPARTMENT

HUMAN RESOURCE DEPARTMENT
The Human Resource department is the primarily concerned with the human
constitution of an organization. It is concerned with the manpower recruitment,
remuneration, promotion, retirement etc., all related to human resource or labors of
the organization.
The Human Resource Department refers to the systematic approach to the
problem of selection, training motivating and retaining personnel in any organization.
It also considers with planning, organizing, directing the personnel functions in the
organization.
Objectives of human resource department
1) To maintain good relation between employer and employees.

2) To maintain good industrial relation.
3) To select right person at right job.
4) To cope with a chain.
5) To develop employees in organization.
6) To full utilization of human resource.
Functions of human resource department
1) Recruitment
2) Job analysis and job description
3) Promotion
4) Wages and salary administration
5) Training and development
6) Records and incentives
41
MANMUL
The department is also concerned with recruitment selection and placement.

1 Development and training to the workers.
2 Development evaluation of the workers.
3 Wage and salary administration.
Suitable candidates are selected to a particular job according to their

qualification and experience.
There is no necessary to give training to the workers on separate machine

other than actual production process. Hence training is given on the job only.
Manager and supervisor are continuously inspecting every worker it access

their performance and there is a better scope for hard workers.
The administration department function by the administrative officer, KMF

Bangalore. The administrative department of the unit holda all official work
responsibility and his direction after general manager.
All the matters regarding preparing of employees attendance, sanctioning of

increments, promotions, leave etc, are notices by this department and presented to
general manager for this perusal and approval of the operation at the end of one
accounting year.
It plays a very important role in the organization. It is primary concern with

human relationship in the organization. A sound human relationship within the
organization. Thus, its main objects lay in the Maintenance of the relationship on a
basis which consideration of the well being of the individual.
 Recruitment will be done by the central office.

 Maintenance of seniority list.
 Employees to promote under KMF interst.
 Private employees trading.
42
MANMUL
ADMINSTRATION AND PERSONNEL DEPARTMENT
Structure:
Deputy Manager
Assistant Manager
Administrative Officer
Superintendent Assistant
Helper
People are the main resources of all productive efforts in every organization. It
is assessed and accepted that human resources are the main components of an
organization and the success and failure of the organization depends on how
effectively they are managed. Acquiring, terminating, developing and properly using
the human resource in the organization is essential for accomplishing the
organizational activities
Function
MANMUL do not have separate personnel department. It is called as
Administrative department in MANMUL. Though the organization has the man
43
MANMUL
power of 302 Personnel, it is a having a personnel manager. The Administrative

Manager is looking after the personnel department along with other Administrative
function.
The disputes between workers and Management are handled by top level
management.
As MANMUL product dairy has work for the whole day, shift system is
maintained. The employees working in plant in three shifts.
Planning and Control System in MANMUL

Planning is a very important function, which is done by top level management
of MANMUL with the help of MIS department. MIS department collects information
and prepares an Integrated Business Plans (IBP) every year. Thus IBP plan is the
standard course of action prescribed for one year.
The actual performance will be compared with the plan and corrective actions
are taken, if there is any deviation from the plan.
Recruitment system of MANMUL.

Recruitment is understood as the process of searching for and obtaining
applicants for jobs, from among whom the right people can be selected.
In MANMUL Recruitments and selection will be done according to the

guidelines issued by the state government. It consists of Expert Panel Committee
comprising of 5 members. They are President of union, Managing Director, Registrar
Co-operative societies , representative from NDDB and representative from KMF.
Currently MANMUL is managing permanent employees as well as contract workers.
Terms of Recruitment
The administrative department follows the rules framed by the Registrar of
Co-operative Societies for the purpose of recruitment and selection. It also follows
the Govt. obligation in case of reservation.
44
MANMUL
Training and Development System in MANMUL

Training and Development refers to the imparting of specific skills, abilities
and knowledge to an employee. Training refers to the process of imparting specific
skill on the other hand, Development refers to those learning opportunities designed
to help employee’s growth.
The MANMUL is conducting training programs for all the members of the
DCS at the union training center at Mysore. It also conducts training and development
programs to the employees of the organization at regular interval of time.
Benefits provided by the MANMUL to its employees
 Quarters facilities for technical officers near the plant.

 Traveling facilities
 Bonus – once in a year.
 Medical facilities.
 Canteen facility-
 meals for Rs 4.00
 Coffee and tea for 1.00 Rs and
 Breakfast for just 2.0 Rs
 Twice the year, Ghee is given free for the employees.
 Pension fund and DA for permanent employees.
 Uniform for employees – once in a year.
 Training programme is conducted.
 Subsidy milk to the workers
45
MANMUL
6.2.8.MARKETING DEPARTMENT
Marketing is the business function that identifies customer needs and wants,
determines which target market the organization can sserve the best designs
appropriate products, services and programs to serve these markets. However,
marketing is much more than just an isolated business functioning. It is a philosophy
that guides the entire organization.
MANMUL has a very good marketing network. Marketing slogan of KMF is “Fresh
and Pure”
MARKETING DEPARTMENT Structure:
Manager
Deputy manager
Assistant manager
Marketing officer
Marketing superintendent
Marketing supervisor
46
MANMUL
Marketing Assistent
Marketing is a comprehensive and it includes all resources and a set of activities

necessary to direct and facilitate the flow of goods and services from producer to
consumer in the process of distribution. Has earned the distinction of not failing to
deliver the Milk to Market on time throughout the year. There are days with no
powers supply, no water supply; but there is no day without NANDINI Milk supply.
Marketing is an important activity of the union. Presently, the union is vested
with the responsibility of marketing Milk and Milk Products under the corporate
Brand name of “NANDINI”.
Objectives
To increase the market of “NANDINI” milk.
1. To increase the average sales in milk and milk products.

2. To deliver its products to the right place at the right time.
3. To meet customers expectations about its products.
The Marketing Mix of MANMUL.
Product
The product mix of MANMUL consists of milk and milk products, such as toned
milk sachets, standard milk sachets, butter milk sachets, curd sachets, Peda sachets,
etc., all the products are Non – durable products.
NANDINI is the family brand name for all the product of MANMUL. Packaging
for the products of MANMUL differs from one another. Polythene film pouch is used
for the toned milk, standard milk, curds and butter milk.
47
MANMUL
Place
Distribution refers to the process through which the final products pass from
MANMUL to the ultimate consumer. This process includes intermediaries who
undertake the activities of distributing the products to the general public.
The distribution channel of MANMUL is very simple i.e., the distribution

channel of MANMUL and its consumer.
MANMUL uses 56 routes to distribute its products. Marketing places of

MANMUL’s products includes whole of Mandya districts and some parts of
Bangalore rural and Bangalore Urban districts.
Price
Price is the amount for which a product is exchanged. MANMUL follows

Administered Pricing Policy fixed by KMF for all the products. The prices of the
products include the cost of production and the commission given to the agents. The
commission structure is designed on the basis of the risk involved in storing the
product and in selling them.
The Statement showing the Rate chart of Milk and milk products:
Sl. No. Product Name Quantity Dealer’s rate MRP

1 1 LTR 20.26 21.00
Tonned Milk 500 ml 10.13 10.50
2
Homogenized Milk 500 ml 11.53 12.00
3 Double Tonned milk 250
500 ml 6.27
9.65 6.50
10.00
250 ml 4.82 5.00
4 Burfi 250 Grams 68.75 75
5 200 ml 50.91 56.00

Ghee 500 ml 124.55 137.00
48
MANMUL
1000 ml 245.46 270

25 kg Tin 3954.60 4350
6 50 Grams 8.85 10.00
100 Grams 17.70 20.00
Skimmed Milk Powder 200 Grams 40.91 45.00
500 Grams 113.64 125.00
1 Kg 200.00 220.00
7 Butter 200 Grams 47.32 53.00
8 500 Grams 12.02 13.00
Curds 200 Grams 6.01 6.50
9 Peda 250 Grams 62.50 70.00
Promotion
Much of the promotional activities are under taken by KMF, through which
KMF creates brand image among the prospective customers.
Sales promotion places a very important role in improving the sales of

products. MANMUL’s promotional activities are in the form of advertisement,
personnel selling, and sales promotion.
The main aim of the promotion techniques is to bring awareness about the
product in the mind of the consumer and to boost sale.
Promotional techniques
The main promotional techniques adopted by the MANMUL are;
1. School children an brought to dairy for visit to create awareness.
2. Arrangements have been made for the visit of women group association etc, to
dairy.
3. Advertisement campaign by way of putting holders, providing display
materials to retailers are undertaken.
4. All through the day advertisement are given to cable operators for telecast and
placing in local papers.
49
MANMUL
5. Public contact programme of one day is being launched in the all the taluks of
Mandya district.
Strategies for Marketing by MANMUL
 All the heavy vehicles are changed to medium insulated vehicle to ensure
timely supply.
 Brand building is taken up through acrylic sign boards, Glow sign boards,
Truck painting, wall paintings Etc.,
 To strengthen the Home delivery & to encourage delivery boys, water proof
caps and HDPE bags are provided.
 School children/ Mahila Mandal (women) will be taken for dairy visit to
develop confidence about quality of milk.
 Door-to-door campaigning is taken to educate consumers about quality of
NANDINI milk compared with the other existing private brands of milk.
 Every year Agents orientation programme to encourage, understand the
problems and to solve.
 Focus is given to train the Marketing & Other connected staff.
 Milk is made available throughout the day opening “ANY TIME MILK
 Mandya District Mandya Tq.
COUNTERS” in Bangalore City Area by providing VISI Coolers/Deep
Freezers. Maddur Tq.
 Presently Private brands like Heritage haveMalavally

captured Tq.
institutional market by
supplying Homogenized milk. Hence it has introduced Homogenized milk to
Pandavapura Tq.
capture institutional market.
Srirangapatna
 By restructuring marketing department more Tq. to key thrust
focus are given
areas in market development activity like consumer education, identification
K.R.Pet Tq.
of new market for the existing products planning of effective sales and
Nagamangala Tq.
promotion programme.
 Ramanagara District Chennapatna Tq.
DISTRIBUTION CHANNEL Bidadi .
Magadi Tq.
The area of operation is as under;
 Part of Bangalore City Vijaynagar,
Kengeri
50
Basaweshwara Nagar
Kamalanagar
MANMUL
Distribution of Milk and Milk Products
The Mandya dairy distributes pasteurized, standardized milk through 3

channels. They are as follows;
1. Distribution of Milk through Agents

Mandya dairy distributes its milk with 800 authorized agents of which includes agents
situated in both city and in rural areas are selling price of milk at present is 21.00 per
liter. Agents will be benefited by .74 Ps.
Milk will be sold to agents on cash-n-carry basis. The maximum quantity sold by
agents per day is 1,40,000-1, 80,000 liters. The average quantity sold by an agent is
400 to 600 liters per day.
2. Distribution of Milk and Milk products through Parlours.

The Mandya dairy maintain 21 parlours. The products of the dairy are sold at the
same Price, which are sold by the agents. Parlour is rendering many services to the
51
MANMUL
public, for example, the parlour that was situated in front of the dairy; which was
rendering service round the clock i.e., 24 hours.
3. Distribution of Milk through Bulk Sales

The dairy also accepts the order and supply in bulk quantity to Government
and other private institutions. Government institutions like Hostels, Hospital and other
private institutions like Bakeries, Hotels, etc.
The Mandya dairy distributes its products in 56 routes in twice a day i.e., once
in morning and once in the afternoon. Milk will also be sold inter dairies and inter
states dairies. The Mode of supply of the above sales is either by tankers of Mandya
diary or tankers of inter-diary.
DISTRIBUTION CHANNELS
Mandya dairy unit has a wide network of channels of distribution on both

direct and indirect sales. The sales have been concentrated in the areas of Mandya
district and Bangalore urban and Bangalore rural districts and other neighbor area.
A Picture of distribution chart is given below:
Manufacturer
(MANMUL)
Consumer (Direct)
MANMUL’S Monthly Milk Sales Abstract for the period 01-APR-10

to 31-MAR-11
Month Sales(in Liters)
52
MANMUL
Apr-2010 178030
May-2010 178534
Jun-2010 183657
Jul-2010 180101
Aug-2010 181693
Sep-2010 180814
Oct-2010 180723
Nov-2010 185381
Dec-2010 185197
Jan-2011 185252
Feb-2011 192832
Mar-2011 195953
Grand Total 2208169.00
Monthly Average Sales 183964.00 Lost month sales( jun 2011) 201504.00
6.2.9. FINANCE DEPARTMENT
Every organization requires an account/finance department where the

circulation of all essential issues like salary billing, sales, purchase etc, are carried out
it act as heart of the organization without whatever may be result of functioning of a
unit, the accounting at the same time, it ensure the results experienced and qualified
person identified as purchase officer.
Functions of finance department:-

Preparation of annual budget.
Scrutiny of all payment bill.
Maintain of sales ledger.
All subsidy books under co-operative societies.
Income tax and tax deductions at source registers.
Debtor’s ledger
General ledger
Preparation of cost sheet.
FINANCE DEPARTMENT Structure:

Manager
53
MANMUL
Dy. Manager
Assistant Manager
Superintendent
Account Assist І Account Assist. ІІ Account Assist ІІІ
Cashier
Helper
Function
The finance department in Mandya diary works as a blood for the whole plant.
The main function of this department is to take care of bills passed and bought to
prepare income and profit and loss account statement and also the annual Balance
sheet. The Finance department get funds extremely only from the NDDB. They
provide fund only for expansion purpose and purchase of fixed capital like machinery,
plant & building etc, on long term loan basis. The working capital is provided by the
internal working capital (Depends upon procurement of milk, i.e., producers).
The capital structure of the union consists of share capital collected from
farmers in the form of shares. The authorized capital as on 31/3/10 of the diary is
447.04 Lakh. They do not have any subscribed capital. Every day the cash book is
maintained to record the cash receipts and cash payment of the day. The cheques
received are also entered in the receipts books later and this information is feed into
the computer to record. Tally software is used in accounts. For every payment to
societies is made on weekly basis. The staff salary is made on monthly basis
according to attendance.
Budgeting
54
MANMUL
They prepare yearly basis IBP (Integrated Business Plan). The budget amount
depends upon procurement and sale of milk. Each section will propose their
requirement. Finally the IBP will be approved by the board.
The union is presently running at a profit and the profit for the year 2010-11 is
1120.08 lakhs.
5.2.10.MA
NAGEMENT INFORMATION SYSTEM (MIS) DEPARTMENT
Public enterprises like dairies are primarily meant to achieve socio economic
objectives like fulfilling social needs. For efficient management, efficient information
system is essential. Information is the lifeblood of an organization. Decision making
and planning at every level of management requires constant information.
Function.
A full-fledged MIS department exists in MANMUL headed by Manager
(MIS). This department supplies the information to the various department managers
to plan and control the operation.
An organization is managed by falling various decisions at the various level of

its management hierarchy. Information is needed to take these decision, quality of
decision while largely depend upon the nature and type of information received from
right person at the right time.
MIS in MANMUL performs 5 functions which help the management to run
the organization without any problem. The functions are as follows:
1. Collection of Data
2. Comparison of colleted data
3. Analysis of colleted data
4. Converting data into real and meaningful information
55
MANMUL
5. Providing all sections with necessary information
1] Collection Data
The Data information is being colleted on the following basis
a. Daily basis
b. Weekly basis
c. Fortnightly basis
d. Monthly data
The middle level management collects the data, which is required for
maintaining the day to day activities of the organization. The data is colleted on the
daily basis and the useful information will be made to help the different functional
heads to plan that activity required for the next day. For e.g., the Procurement and
Sales information is collected everyday and the same will be analyzed by MIS
department, using the data of previous day. Trend analysis is provided to other
functional department such as transport, products, stores, etc., based on which these
departments will plan the activities for the next day, The trend in Procurement and
Marketing will made available to the respective Managers of Procurement and
Marketing as well as to the Producers or rural villages. This personal rush to the
concerned village and provide necessary medical care to animals.
2] Comparison of Collected data

The data collected over the period will be complied and comparative statement
will be prepared in order to draw inferences, comparative statement are very useful to
assess the performance of different personnel engaged in different activities. These
comparative statements give a clear picture on how an activity is progressing in a
given period of time.
3] Analysis of the data

The MIS division makes regular analysis of data colleted form various
divisions at the various intervals and prepares useful information to be provided to the
MD of the organization and board of management to make right decision at right time
in order to formulate right process.
56
MANMUL
4] Converting Data into Information

If data collected and unless maintained properly it would not carry any
meanings and it would be useless. So the management should collect the information
which required taking correct decision.
MANAGEMENT INFORMATION SYSTEM (MIS)
DEPARTMENT Structure:
Manager
Deputy Manager
Assistant Manager
MIS Officer І MIS Officer ІІ MIS Officer ІІІ
Role of MIS in Decision Making
The Management Information System division plays a very important role in

planning, decision making and controlling the activities. A detail planning is done in
diary and the document is called “IBP” (Integrated Business Plan). This is prepared
every year by the MIS division. This document consists of plans of all the functional
groups both in terms of physical as well as financial. This document is always used to
monitor the plan of that year as well as to assess the performance of different
functional groups. The MIS division also helps the MD to conduct review of IBP on
monthly basis and to fix up targets of different activities. It also helps the MD to make
decision on any investment or expansion plans.
5.2.11 PROCUREMENT AND INPUT DEPARTMENT
57
MANMUL
Structure:
Manager P&I
Dy. Manager A.H. Dy. Manager A.I Dy Manager F&F Dy. Manager P&I
Asst. Manager P&I
Extension Officer
Function
This department is concerned with the functions of the procurement of milk,
providing of feed and fodder to the member, establishment of women DCS, providing
of veterinary facilities to the members.
Milk Procurement:-
Raw Material is the basic requirement of every organization. The sequence of

bringing milk into MANMUL starts from the collection of milk from the individual
milk producer. The total number of villages covered 1182 and the numbers of DCS
functioning are 1150.
This collects milk from the producers, each societies located in applicable
commanding villages and its area of operation may extend to one of more villages and
within 2 to 4 kms.
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MANMUL
MANMUL has got 61 milk procurement routes and each route covers around
15 to 20 societies. DCS collects milk from producer and milk is stored in cans and
transported to MANMUL through trucks. If the main dairy is far away from DSC i.e.,
more than 100 kms then milk is transferred to nearest chilling center., to chill the milk
in order to avoid the growth of micro organisms and then it is transported to main
dairy. MANMUL has got two chilling centers located in K.R.Pet (40,000ltrs) and
Nagamangala (20,000ltrs).
After collecting milk from various DCS it will be processed in MANMUL and
supplied to the customers. Apart from the milk, the other materials like packaging
materials, engineering materials are procure through calling tenders.
The payment is made to supplier of milk on weekly basis and the payment for
the transport contractors is made once in the fortnight. In case of shortage of milk the
union purchases milk from the other dairy at inter-dairy price .The payment is made
to farmers on the basis of percentage of Fat content and for DCS, percentage of fat
content and SNF percentage.
Sequence of bringing milk into MANMUL
DCS DCS
DCS DCS
59
MANMUL
K.R.Pet Nagamangala
Chilling center Chilling center
DCS
DCS DCS
MANMUL
5.2.12.CHILLING CENTER WORK
The chilling at each place works under 2 shifts i.e., morning and evening. The
functions of a chilling center are as follows:
As soon as the milk is received at the reception dock, it empties from the cans to the
milk weigher and weighed. Each society’s milk is dumped and composite samples are
taken for testing after preliminary checking for test of any adulteration or durability of
milk.
In society, the quality and quantity of milk is recorded in a statement called truck
sheet. On the basis of which computerized billing is arranged. A copy of such
recording of each society is sent to the respective societies as acknowledgement by
his dairy and for cross examination by the society. After the milk is dumped into a
dump tank, and plunged to a chiller. This chiller is called PHE (Plate Heat
Exchanger). This is done to cool the milk as per the principle to reduce the growth of
microorganisms to maintain quality. The chiller can chill 60,000 ltr of milk per hour.
The milk is chilled with ice-water.
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MANMUL
There are 2 inlets and 2 outlets, one for milk and one for ice-water in the
chiller. The PHE is divided into number of plates that carry continuous chilling of
milk, to the storage tank. From this tank it is pumped into tankers for transportation to
the main dairy. If in the preliminary testing the milk is suspected to be bad and if
found positive it will be collected separately and then it is separated using separator
and checked for COB (Clot On Boiling) +ve test. If the milk curdles, the milk is
discarded, if only flakes appear, the milk separated using separator to separate fat.
This fat is later transported to the dairy for manufacture of butter.
Reception takes place in two shifts i.e., morning and evening between 9:45 am to
12:30 pm. Evening shift between 9:30 pm to 11:30 pm.
After chilling of milk, it is transported to the main dairy at morning and

evening shift between 3:00 am to 4:00 am and 2:30 pm to 3:00 pm respectively. The
equipment used in the chilling centers is chiller’s can washers. It is used to wash the
can brought from the societies. The milk after chilling is stored in 2 storage tanks of
capacity of 20,000 ltrs each at K.R.Pet and Nagamangala.
The chilling centers consist of a Manager who takes care or rather supervises
the work of the reception dock, quality control department, Administrative assistants,
operator and Helpers. They take note of number of cans delivered morning and
evening to CC and delivery tank, departure time to main dairy if there is any bad milk
societies name etc., is noted later at the end of each day. The report is submitted to the
main dairy including the 4 copies of truck sheets. After that the chilling center
transfers milk into a tanker that has to be delivered to the main dairy.
Technical input programme

Technical input programme is one of the major components of the union for
enhancing milk production. Union has well established input section to meet the
needs of its member producers. Various technical input activities that are being
provided to member producers include facilities such as emergency visit service.
Animal health camps, Artificial Insemination centers, first-aid centers, Animal
Disease Diagnostic laboratory, supply of semen straws, seeds of multi-cut varieties
etc., besides extension activities such as organizing cattle show and milking
competition, village meetings, cattle fed plants.
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MANMUL
5.2.13.SECURITY DEPARTMENT
Function
Security is nothing but safeguarding the property of the organization against
any malpractices. The security department in MANMUL is concerned with the
security measure at the main gate of the organization and also takes care in and
around the plant site. The security department ensures that the workers arrive at the
right time to the premises and the entry of trespassers into the premises is checked.
The visitors have to seek permission from security before entering the premises. The
department is also makes note of the quantity of the Milk which has entered the dairy
through tankers and the quantity of Milk dispatched from sthe plant. By this
information, the department prepares the report of activities of every day and reports
it to the Managing Director.
The Security Department consists of 66 Security Assistants including the

security in both chilling centers. The department has to work for 24 hours in a day
with different shifts. There are 4 shifts in which the department works, i.e., 1 st shift-
5.30am to 9.00am, general shift-9.00am to 2.00pm, 2nd shift-2.00pm to 6.00, Dispatch
shift from 6.00pm to 5.30am.
SECURITY DEPARTMENT
Structure:
Security Officer
Security Supervisor
Security Head Guard
Assistants
62
MANMUL
MC KINSEY 7-S MODEL
Theory of MC KINSEY 7-S MODEL
The seven S Framework 1st appeared in “the Art of Japanese Management”

by Richared pasal and Anthony Athos in 1981. They had been looking at how
Japanese industry had been so successful, at around the same time Tom Peter
and Robert Waterman were exploring what made a company excellent. The seven S
model was born at a meeting of the four authors in 1978. It went on to appear in “in
Search of Excellence” by the Peter and Waterman, and was taken up as a basic
tool by the global
Management consultancy Mckinsey know as 7s model.
The Seven Elements are
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MANMUL
The McKinsey 7S model involves seven interdependent factors which are

categorized as either "hard" or "soft" elements:
Hard Elements Soft Elements

Strategy Shared Values
Structure Skills
Systems Style
Staff
"Hard" elements are easier to define or identify and management can directly
influence them: These are strategy statements; organization charts and reporting lines;
and formal processes and IT systems.
"Soft" elements, on the other hand, can be more difficult to describe, and are less
tangible and more influenced by culture. However, these soft elements are as
important as the hard elements if the organization is going to be successful.
The way the model is presented in Figure 1 below depicts the interdependency of the
elements and indicates how a change in one affects all the others.

Let's look at each of the elements specifically:
 Strategy:
The plan devised to maintain and build competitive advantage over the
competition.
 What is our strategy?
 How do we intend to achieve our objectives?
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MANMUL
 How do we deal with competitive pressure?
 How are changes in customer demands dealt with?
 How is strategy adjusted for environmental issues?
 Structure:
The way the organization is structured and who reports to whom.
 How is the company/team divided?
 What is the hierarchy?
 How do the various departments coordinate activities?
 How do the team members organize and align themselves?
 Is decision making and controlling centralized or decentralized? Is this as it

should be, given what we're doing?
 Where are the lines of communication? Explicit and implicit?
 Systems:
The daily activities and procedures that staff members engage in to get the
job done.
 What are the main systems that run the organization? Consider financial
and HR systems as well as communications and document storage.
 Where are the controls and how are they monitored and evaluated?
 What internal rules and processes does the team use to keep on track?
 Shared Values:
Called "superordinate goals" when the model was first developed, these
are the core values of the company that are evidenced in the corporate culture and
the general work ethic.
 What are the core values?
65
MANMUL
 What is the corporate/team culture?
 How strong are the values?
 What are the fundamental values that the company/team was built on?
 Style:
The style of leadership adopted.
 How participative is the management/leadership style?
 How effective is that leadership?
 Do employees/team members tend to be competitive or cooperative?
 Are there real teams functioning within the organization or are they just
nominal groups?
 Staff:
The employees and their general capabilities.
 What positions or specializations are represented within the team?
 What positions need to be filled?
 Are there gaps in required competencies?
 Skills:
The actual skills and competencies of the employees working for
the company.
 What are the strongest skills represented within the company/team?
 Are there any skills gaps?
 What is the company/team known for doing well?
 Do the current employees/team members have the ability to do the job?
66
MANMUL
 How are skills monitored and assessed?
Placing Shared Values in the middle of the model emphasizes that these
values are central to the development of all the other critical elements. The company's
structure, strategy, systems, style, staff and skills all stem from why the organization
was originally created, and what it stands for. The original vision of the company was
formed from the values of the creators. As the values change, so do all the other
elements.
SWOT ANALYSIS
Strengths
1. Market leader.
2. Provides excellent veterinary, Vaccination, Extension facilities, Feeds and Fodder
seeds supply etc., in the field, which cannot be thought off by any private operator.
Hence earned lot of goodwill from member producers, who patronize the Union
throughout the year.
3. “NANDINI” is a trusted household brand name.
4. Highly remunerative and timely payment to producers.
5. Economies of scale – More volumes leading toeless cost on each unit sold, which
is difficult to match by any one in the market.
6. Union is in good financial position, even with least margin between procurement
price (one among the highest in the country) and sale price (one among the lowest in
the country).
7. Good institutional support from KMF, NDDB, NCDFI, Etc.,
Weakness
1. Lack of flexibility in deciding about its operation. No authority over issues like
pricing, offering volume discounts etc
67
MANMUL
2. No replacement policy, resulting in safe indenting by the Agents.

3. Inter – Union competition in same place.
4. Organizational structure does not permit incentive/ reward for good performance
among DCS, Sales Agents, Material suppliers and Employees for Quality
performance, achieving volumes, etc.
Opportunities
1. MANMUL has got eternal Bangalore market which can be extended very
comfortably to 1.5 Lakh liters market in about couple of seasons.
2. Because of logical location MANMUL has a perennial supplies of milk to Tamil
Nadu and Kerela
3. At much better price than any other milk unions’ price obtained in Karnataka.
4. Institutional markets, bakeries, hotels, Etc., are not fully tapped and these can
captured preferably by direct marketing.
5. Market milk share of unorganized sector still remains to be tapped.
6. Exploit the “Human Face”, by positioning in the market as an organization with
social responsibilities of serving the milk producer by paying remunerative price and
serving customer by offering hygienic quality product at a reasonable price
throughout the year. Union is not in the business to maximize the profit as in the case
of private dairies and is acting as price stabilizing force in the market. Projecting these
to the customers will reinforce the positive image of the organization in customers’
minds as a caring organization which service to them as its motto.
Threats
1. After liberalization, entry barriers in the dairy industry eased for new entrants.
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MANMUL
2. Private dairies procure milk at lowest cost from producers and sell milk resorting
to unethical trade practices.
3. It is a marketing war in which union has to fight by rules and other i.e., private
dairies do not fight by rules. Hence, there is no level playing field for organization
with social responsibilities to compete with organizations with purely profit motive.
4. Some private dairies are selling homogenized milk, which appears rich. The union
cannot homogenize all its huge quantity of milk being sold due to lack of
homogenizing capacity and increase in processing cost.
5. Plans of major companies like Reliance, ITC to enter into milk market in future.
GENERAL OBSERVATIONS
1. MANMUL acts as a bridge between producers (farmers) & consumers.

2. The company has a good track record of performance from the last decade.
3. MANMUL has maintained good relationship with producers (farmers).
4. The company has maintained a well motivated and dedicated work force.
5. It owns a good market share of 75% (Approximate) in Karnataka.
6. Provides excellent working environment to its workers.
7. The Dairy premise is always clean and neat.
8. Excellent Canteen facility where in hygiene and nutritious food is provided to
employees and workers at subsidized rate.
9. The company conducts various programs to impart knowledge to its employees and
workers.
10. It encourages the students to take projects, so that they can get a partial
knowledge of the company’s different functionaries.
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MANMUL
Recommendations
 The company should arrange the brand awareness campaigns and exhibitions.
 3, 5&10 Liters sachets should be introduced to attract institutional market like
hotels, hospitals, factories and other major institutions.
 Retailers’ Sales margin should be increased to motivate them to push the
NANDINI Products more.
 Business to Business and Business to Consumers website should be created to
enhance online Marketing.
 Separate HR manager should be appointed to know the problems of workers and
to solve them.
 Training should be given to retailers in Marketing and relationship building
activities.
 To provide sign boards within the dairy to facilitate the easy identification of the
departments.
 Job Rotation should be done frequently to workers especially in the plant, so that
they are realized from boredom of work, and which also motivates them to acquire
additional skills.
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MANMUL
 To build the teams of empowered employees.

 To provide employees with special training such as Job enlargement, Job
enrichment and empowered teams, so that the productivity is increased.
 To stay competitive the company should adapt new advanced technologies.
LEARNING EXPERIENCE
In plant training in “MANMUL” has been truly a memorable and knowledgeable

experience. The learning experience of this study are as follows.
 This summer implant training enhanced my knowledge with corporate

 Exposure and practicability of subject in the industry.
 It gave me an understanding as to how an organization operates.
 It gave me an idea as to how the hierarchical structure of an organization
understand the chain of command and authority.
 This study has helped me for augmenting the skills, ability and also capability
of students.
 Time sense was very much evident in MANMUL which gave me an insight
as to how punctual is very importance. Importance of different management
functions was known which guide the organization in facing stiff competition
from competitors.
71
MANMUL
 Over the past few weeks I have been engaged in this project at MANMUL and
I must confess that this experience has an eye opener.
 Importance of leadership traits which guide in achieving personal as well as
organizational goals.
CONCLUSION
Indian dairy sector contribute a large in agricultural Gross Domestic Products,

Since Milk is one of the basic need for the people. Mandya Dairy, a service
oriented organization as entered households of Mandya city and some parts of
Bangalore Rural & Urban Areas with efficient products and service.
The customers can take into confidence so that it helps dairy with the better
insights even though KMF is facing a very strict competition from the
competitors like Heritage, Arogya, Dodla and Swastik. It has strong brand
image and also better distribution network. This study clearly inducts retailer’s
opinion, this is no stage complement towards the milk marketing of
MANMUL and how services can be improved.
After liberalization, many foreign companies have entered into Indian market,
so, MANMUL (KMF) should strengthen all is resources to face their
72
MANMUL
competitors and adopting itself to changing scenario. The Nandini is a house

hold name in Karnataka and other neighbor states. So, all efforts should be
continued to build upon this important asset.
BIBLIOGRAPHY
Annual Reports of MANMUL
Marketing Management Philip Kotler
Production management K.Ashwathappa
Personnel and Human Resource management P.Subbarao
Websites: www.nandiniproducts.coop
www.nandinimilk.com
www.indianmilk.com
www.indiandairy.com
MANDYA MILK UNION LTD.,
73
MANMUL
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MANMUL

OBJECTIVES OF THE STUDY

 To get the practical exposure in the corporate world.

SCOPE OF THE STUDY

Apart from this

 To get in touch with the industrial and organizational environment

Assumptions of the study:-

This study on the following assumptions:

 The data given by the officials are unbiased.

Limitations of the study:-

Methodology of the Study

 By observing the various departments of the organization.

 From the Company Manuals.

General Information of Milk & Milk Industry:

Growth and development of the Industry

Present status of the industry

Changing Pattern of the Industry

A major quantity of milk output is converted into varieties of traditional dairy

STRATEGIES TO BOOST INDIAN DAIRY PRODUCTS

 Improve the quality of the products.

 Research and Development.

Karnataka Cooperative Milk Producers' Federation Limited (KMF)

KMF is the Apex Body in Karnataka representing Dairy Farmers' Co-

List of Co-operative Milk Union Producer’s Societies Association

Mandya Milk Union Ltd.,

Mandya District Co-operative

Milk Producers' Socieities Union Ltd.

MANDYA Dairy, complex facts at a Glance.

Quality assurance from cow to consumer.

To vanish the scarcity of milk.

To fulfill the objectives of the White Revolution.

Avoiding post harvest losses.

To strengthen the living standards or rural people

Pasteurization and homogenizing of the procured raw milk.

Producing the other milk product.

Transporting the pasteurized milk in various quantities from processing plant

Supply milk to the consumer at a reasonable rate.

Developing good infrastructure facility.

5. To build village level institutions co-operative sector to manage the dairy

“Every employee of mother dairy will strive for customer satisfaction

Special features of MANMUL:

In June 1947 are integrated project way launched in Karnataka to restructure

3.2. NATURE OF THE BUSINESS

The philosophy of this co-operative milk producers’ organisation is to

It is a voluntary association of persons who work together to promote their

Characteristics of Co-operative Society

vi. Distribution of Surplus:

Nature of the business carried

The production department of Nandini milk products is located in the KMF

MANMUL most of the milk from societies and K.R.Pete, Nagamangala

The Area of Operation

3.3. Mile Stones of KMF

 2002: Adoption of “Mnemonic symbol” in Bangalore, D.K. & Mysore on 05-

3.4. INFRASTRUCTURAL FACILITIES

Facilities for the employees

1. Quarters, hospital etc. facilities and allowances are given.

3.5 . COMPETITORS PROFILE