A Report on “ORGANISATION STUDY” at

The Mandya District Co-operative Milk Producers Society's Union

Limited (MANMUL)

Submitted in partial fulfilment of the requirement of

Master of Business Administration Programme
Offered by EAST WEST INSTITUTE OF TECHNOLOGY
During the year 2020-21.

By
PUJA.L
Reg No: 1EX19MBA07
Sem: 2nd Sec: “B”

Under the guidance of

DILIP KUMAR. G
PROFESSOR, EAST WEST INSTITUTE OF TECHNOLOGY

No. 63, East West College Road, Off, Magadi Main Rd,
Vishwaneedam Post, Anjana Nagar, Bengaluru, 560091.

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Page 2
 Chapter: 1
INDUSTRY PROFILE

In Karnataka, on June 4th 1975 four milk unions were started in Bangalore, Mysore, Tumkur and
Hasan. Karnataka Dairy Development Corporation got Re-named as Karnataka Milk Federation.
Dairy is a place where processing of milk products is done and technology has been defined as
that branches of dairy science which deals with the processing of milk and the manufacture of
milk products on an industrial scale.
Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body for the
dairy co-operative movement in Karnataka. It is the second 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. One of the core functions of the Federation is marketing of Milk and Milk
Products. The Brand "Nandini" is the household name for Pure and Fresh milk and milk
products. KMF has 14 Milk Unions covering all the districts of 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 Federation is striving to create a self-reliant and

vibrant rural economy in Karnataka by providing a
supportive and conducive environment for the growth of
Dairy Cooperatives as autonomous economic and social
institutions. The Federation is largely successful in
realizing the objectives of dairying during the last four
decades of dairy development in Karnataka State. It is
by-and-large successful in providing a viable subsidiary
occupation to unemployed rural poor so as to raise their
income earning capacities and to supply adequate
quantity of quality milk at reasonable prices to urban
consumers.
The results of effective dairy development by KMF have made far-reaching and extensive
impact on rural landscape in Karnataka. The best remunerative milk purchase price to farmers,
efficient and timely input services, delivered at the door-steps to farmers, such as, unfailing
veterinary health services to any remote village, quality artificial insemination for breed
improvements, supply of balance cattle feed at less than the market price, etc., have made the
farmers to increasingly patronize their cooperative. The extent of patronization by farmers is so
complete, that dominant share of marketable surplus milk of farmers in Karnataka is procured by
KMF dairies and hardly there is any organized private dairy milk procurement, which is widely
prevalent in other parts of the country.

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MILK:
Milk may be defines as whole fresh, clear, lactel sureties obtained by the complete milking of
healthier animals. It represents the prefect food for man nearly than any other natural foods an
adequate consumption of milk can correct dieting deficiencies for most people strong healthy
bodies. It is delicious and appetizing food as well as being healthful.
The major constituents of milk are water, fat, protein,
lactose and mineral water. The major constituents are
phospholipids, sterols, vitamins, enzymes, pigments
etc. the true constraints 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 the most of the civilized countries of the
earth. With 60% of the world population Asia
accounts for only 20% of the global milk production.
The Asian countries have been producing over 96% of buffalo milk output estimated at 40
million tones, India accounts for more than 30% of it.

DAIRY FARMING IN WORLD

In the last 3 decades, World Milk Production has increased by more than 59% from 530 million
tones in 1988 to 843 million tones in 2018. India is the World’s largest Milk producer with22 %
of global production, followed by the United States of America, china, Pakistan, &Brazil.
Total U.S Milk Production increased to 215.5 million pounds,1.4% more than 2016. Dairy’s
economic impact adds billions of dollars to U.S regional state and local economies each year
total 2017 U.S Milk production was valued at $38.1 billion, up from $34.5 billion in 2016. U.S is
producing over 87 million tones per annum.
The most famous dairy in the country is probably  Fair Oaks Farms, halfway between
Indianapolis and Chicago, where 36,000 cows are milked across 11 barns. It's also
something of a tourist destination.
Approximately 150 million households around the globe are engaged in milk production. In most
developing countries, milk is produced by smallholders, and milk production contributes to
household livelihoods, food security and nutrition. Milk provides relatively quick returns for
small-scale producers and is an important source of cash income.

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In recent decades, developing countries have increased their share in global dairy production.
This growth is mostly the result of an increase in numbers of producing animals rather than a rise
in productivity per head. In many developing countries, dairy productivity is constrained by
poor-quality feed resources, diseases, limited access to markets and services (e.g., health, credit
and training) and dairy animals’ low genetic potential for milk production. Unlike developed
countries, many developing countries have hot and/or humid climates that are unfavorable for
dairying.

Some countries in the developing world have a long tradition of milk production, and milk or its
products have an important role in the diet. Other countries have established significant dairy
production only recently. Most of the former countries are located in the Mediterranean and Near
East, the Indian subcontinent, the savannah regions of West Africa, the highlands of East Africa
and parts of South and Central America. Countries without a long tradition of dairy production
are in Southeast Asia (including China) and tropical regions with high ambient temperatures
and/or humidity.

DAIRY FARMING IN INDIA

India is the world's largest milk producer, with 22 percent of global production, followed by the
United States of America, China, Pakistan and Brazil. Since the 1970s, most of the expansion in
milk production has been in South Asia, which is the main driver of milk production growth in
the developing world. India has greatest number of
cows in the world with over 40 million cows.
In the dairy has been practiced as a rural cottage
industry since the remote part semi commercial
dairying as been started with the establishment of
military dairy farms and corporative milk unions
throughout the country towards the end of
nineteenth century. In the early year each
households of those countries maintain its family
cow and secured milk from its neighbor who lived
closed by. As the urban population increased, fewer
household could keep a cow for its private use. The
high cost of milk production, problems of sanitation etc. restricted the practice and gradually the
family row in the city was eliminated and city cattle were all sent back to the rural areas.
The Indian dairy industry has been rapid progress since independence. A large number of
modern milk plants and factories have been established. These organized diaries have been
successfully engaged in the routine commercial production of pasteurized bottle milk and various
western and Indian dairy products.

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HISTORY OF INDAIN MARKET MILK INDUSTRY
 Organized milk was made in India with the establishment of military dairy farms in India
 Handling of milk in corporate milk unions established all over the country on a small
scale in the early stage.
 Establishment of milk plants under the 3 year plans of dairy development all over india .
they were taken up with the dual object of increasing the national level milk consumption
and ensuring for the better returns to the primary milk producer. There main aims were to
produce more, better and cheaper milk.
 Pasteurized and bottling of milk on a large scale was organized distributed was started at
Aarey 1950
Calcutta 1958
Delhi 1959
Worli 1961
Madras 1963
 In 2000’s Plant-based milks began to emerge to cater to a growing vegan movement and
the needs of those who could not
consume dairy. In recent years a new
concern has been added to the list—
the sustainability of the dairy industry.
The push to provide dairy to every
member of society has placed stress
on sections of the chain that have been
overlooked in the quest for growth.
On the one hand, the lives of the cows
that produce milk have declined due
to inexperience and lack of
knowledge. On the other hand, the
poor quality of life provided to these
animals causes illness (to the non-human animal and us in the form of cross-species
transmission) and poor (and possibly harmful) milk production.

 India represents one of the largest and fastest growing market of milk productivity by
march 1999,it was 74 million tones, and by 2001 it reached to 88.5 million tones of milk.
The strength of dairy economy is in its livestock of 270 million that includes 57 million
cows and 37 million buffaloes which also is the largest in the world.

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 CHAPTER 2

ORGANISATION PROFILE

COMPANY PROFILE:

Mandya district co-operative milk union limited, registered in the year 1987 jurisdiction of
Mandya District only it covered 7 Taluks, It is one of the leading milk union in the state of
Karnataka. It was registration during the year 1987, Before registration Mysore and Tumkur milk
union to procure milk from Mandya district dairy co-operative societies. At the time of
registration, the union procurement of milk was 99000 liter per day through 410 dairy co-
operative societies now the union is procuring 9.05 lakh liter per day through 1235 dairy co-
operative societies.

In 1988 union started marketing about 5000 liters per day which gradually extended to about
15000 liters. There came a boon through the advent milk marketing in Bangalore city from 1993.
As on Today milk sales about 2.68 lakh liter per day.

The union undertook the work of organization of milk co-operative in ‘AMUL Pattern’ with the
main objective of socio-economic reformation of the farmers in the rural areas through dairying
as main subsidiary occupation.

The union has 1235 functioning dairy co-operative societies of which 544 are functioning
women societies. The union as established 241 women dairy co-operative societies under STEP
program of government of India.

GENERAL INFO:

Area of the diary- 47 Acres,

Handling Capacity – 2,00,000 LPD

Estimated cost of the building – 1.83Crs

Number of Employees – 410

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MILK PROCURMENT:

Dairy co-operative societies functioning -1150

Dairy societies registered – 994

Procurement routes – 61

Chilling centers – 2

Districts covered – 1

Taluk covered – 7

Village covered – 1182

MILK DISTRIBUTION:

Distribution routes – 56

Districts covered – 3

Selling agents – 750

Selling agents in urban – 486

Selling agents in rural – 264

Milk parlors – 21

MANMUL Products:  Curds, Ghee, Butter, Skim Milk Powder, Paneer, Peda, Mandya Special
burfi, Khova, UHT Goodlife, Goodlife Slim, Goodlife Smart. The brand Nandini has become
synonym for quality milk and milk products. 

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 Quantity Available
Title Product Image
in

200 grams, 500

Nandini Curd
grams

Nandini Shubham Milk 500 ml, 1000 ml

Nandini Spiced Butter

200 ml
Milk

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 Quantity Available
Title Product Image
in

Nandini Pure Cow 200 ml, 500 ml,

Ghee 1000 ml, 15 kg

25 grams, 100
Nandini Milk Peda
grams, 250 grams

T Butter Salted 500 grams

200 grams, 500

Skimmed Milk Powder
grams, 1 kg

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 Quantity Available
Title Product Image
in

Nandini Slim Milk 500 ml

MILK

Quantity Available
Title Product Image
in

Mandya Special
250 ml
Burfy

T BUTTER 100 grams, 200

UNSALTED grams, 500 grams

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 Quantity Available
Title Product Image
in

Good Life Smart 100 ml, 200 ml

250 ml, 500 ml,

Nandini Special Milk
1000 ml

100 ml, 200 ml,

Nandini Goodlife
500 ml

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 Quantity Available
Title Product Image
in

200 grams, 500

Nandini Paneer
grams, 1 kg

Nandini Pure Milk

200 grams, 1 kg
Khova

Nandini Peda ,  250 grams

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 Quantity Available
Title Product Image
in

Nandini Pasteurized
500 ml, 1000 ml
Toned Milk

Nandini
Homogenized Cow's 250 ml, 500 ml
Milk

NATURE OF THE BUSINESS:

Mandya Milk Union was registered in the year 1987. The Product Dairy, Gejjalagere was then
managed by Mysore Dairy.   In the Year 1988 The Product Dairy, Gejjalagere was handed over
to Mandya Milk Union.

The philosophy of Union is to eliminate middlemen and organize institutions to be owned and
managed by the Milk Producers themselves, employing professionals and to achieve economies
of scale to ensure maximum returns to the Milk Producers. 

MANMUL with its headquarters at Gejjalagere has got liquid milk plant of 4.25 lakh liters
capacity and a powder plant of 18 MT capacity per day through the assistance of NDDB. It has
chilling center at KR Pet.  The dairy has a spread of 47 acres of land at Gejjalagere and 3 acres at
KR Pet.At the time of registration the union procurement of milk was 99000 liter per day

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through 410 dairy co-operative societies now the union is procuring 9.05 lakh liter per day
through 1235 dairy co-operative societies.

MANMUL was a part of Mysore & Tumkur Milk Unions till 1987.  In 1988 Union started
marketing about 5,000 liters per day which gradually extended to about 15,000 liters. There
came a boon through the advent of milk marketing in Bangalore city from 1993.  As on July
2020 the  Milk  sales  is about 4.13 lakhs liters per day (2.68 lakhs liters in sachet and 1.45
lakh liters in bulk)

MANMUL Products:  Curds, Ghee, Butter, Skim Milk Powder, Paneer, Peda, Mandya Special
burfi, Khova, UHT Goodlife, Goodlife Slim, Goodlife Smart. The brand Nandini has become
synonym for quality milk and milk products. 

Milk variants:  Toned Milk, Homogenized Cow Milk, Samrudhi Full cream Milk, Shubham

Standardized milk 

Dairy Units Processing Capacity Details:

Sl No Dairy Processing Capacity

 
A Mandya Dairy 4.25 Lakh LPD

Power plant 18.0 MT/day

B Chilling Centre's Chilling Capacity

1 K.R pet 1,00,000 LPD

Nagamangala
2 (Status-Closed as on 60,000 LPD
March 2018)

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OBJECTIVES & AIMS OF MANMUL:
 To build and develop village institutes as cooperative model units to manage the dairy
activities.
 They organize exclusive women dairy co-operative.
 First aid facility at the society level.
 To ensure the provision of inputs for milk production and processing facilities.
 Cross breeding facility through artificial insemination services at the farmers door step.
 They also provide hygienic milk to urban consumers.
 Implementation of STEP program through government of Indian project.
 Provide assured and remunerative market for all the milk produced by the farmer
members.
 They also provide good quality milk and milk products at competitive price to both rural
and urban consumers.
 Emergency visit to treat the animals on the nominal fee to be collected from the
producers.
 To facilitate rural development by providing opportunities of self-employment along with
providing opportunity for steady income at village level.

VISION OF MANMUL:
The vision of Mandya Milk Union is to grow in to Model Co-Operative Milk Union in the
country by accomplishing our mission of assuring rural prosperity in the lives of Member milk
producers in Mandya Dist.
 Quality assurance from cow to consumers.
 Product diversity.
 To vanish the scarcity of milk.
 To fulfill the objectives of the white revolution.
 To strengthen the living standards of the rural people.

MISSION OF MANMUL:
 Supply milk to consumers at reasonable rate.
 Developing good infrastructure facility.
 Pasteurizing of the procured raw milk.
 Procuring the raw milk from the local farmers at the fair price.
 To compete with MNC’s and other private dairies with the better quality of milk and milk
products in the process.
 To abridge the gap between price of milk procurement and sale price.
 To ensure the prosperity of the rural milk producers who are the ultimate owners of the
federation.

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VALUES OF MANMUL:
 Honest
 Quality
 Trust
 Impartial
 Saving
 Transparency
 Timelines
 Discipline

QUALITY POLICY OF MANMUL:

Mandya District Milk Union is committed to procure and supply safe Milk & Milk Products to
the satisfaction of consumer by:
 The Milk from milking machines, collected through automatic computerized milk
collection units it is chilled directly in bulk milk coolers.
 This chilled raw milk, untouched and unadulterated by human hands has very high
microbiological quality, comparable to international standards.
 This High-quality milk is being utilized for manufacturing high-
quality value-added milk products, for both domestic as well as
international markets.
 Complying with statutory and regulatory requirements.
 Constant communication with all parties involved in the food chain
 Adapting GHP, GMP & HACCP
 Adapting, scientific processing methods.
 Training of employee’s union dairy co-operative societies.

This committee is supported by measurable objectives and brings about continual

improvement.

CHILLING AND STORAGE:

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As soon as the milk is received and dumped, it is pumped to storage tank through a chiller. The
chilling system, that enables rapid cooling to reduce temperature to the desired level, is
preferred. An ice bank system, using chilled water circulating through a plate heat exchanger to
cool the milk immediately after reception, is more effective than immersing cans in chilled
water, placing in a cold storage or cooling in jacketed vat with chilled water etc. The milk should
be kept cold until it is dispatched to processing plant. For this purpose, insulated bulk storage
tanks mounted with motor-agitator and cooled by chilled water or refrigerant are the most
effective.
The chilling center pools, accepts and weighs the supplies of the milk from different sources, and
checks the condition and quality of milk supplies. Milk is chilled immediately and stored till
supplied it to the market or processor.
Purpose of chilling centers: As soon as the milk is received and dumped, it is pumped to
storage tank through a chiller. The chilling system, that enables rapid cooling to reduce
temperature to the desired level, is preferred. ... The milk should be kept cold until it is
dispatched to processing plant.

CHILLING CENTERS OF MANMUL:

Nagamangala chilling center:

Nagamangala Chilling center was located about 55 kms away from Mandya Dairy, and it is
situated in Nagamangala city. It was commenced during the year 1994 with a capacity of 10,000
liters per day. Milk from societies of Nagamangala taluk supply milk through 13 milk
procurement routes. On an average of 85264 kgs of milk was procured daily from 238 functional
societies. As on April 2019 Nagamangala Chilling Centre was closed & all PTC routes are
replaced with BMC.
K.R.Pete chilling center :

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K.R.pete Chilling center located about 69kms away from Mandya Dairy, and it is situated in
K.R.pete city. It was commenced during the year 1994 with a chilling capacity of 30,000 liters
per day chilling capacity expandable to 60000 liters per day during 2012. Milk from societies of
K.R.pete and Partial supply milk through 14 milk procurement routes. On an average of 105968
kgs of milk is procured daily from  221 functional societies.

UHT PLANT: (ASEPTIC PACKING)

ULTRA HIGH-TEMPERATURE TREATMENT (UHT)

UHT milk packaged in a sterile container, if not opened, has a typical unrefrigerated of six to
nine months. In contrast, HTST pasteurized milk has a shelf life of about two weeks from
processing, or about one week from being put on sale. A
significant percentage of milk sold in the US as organic
food is UHT treated.

UHT is most commonly used in milk production, but the

process is also used for fruit juices, cream, soy milk, yogurt,
wine, soups, honey,

Kumbalagudu UHT Packing Unit:

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 Kumbalagudu UHT packing unit located about 65kms away from Mandya Dairy and is
situated in kumbalagudu industrial area, Kengeri, Hobli, Bangalore -74. It was
commenced during the year 2012 with a UHT packing capacity of 10.7lakh liters per day.
Presently UHT production and sales average 70TLPHD. Its producing Good Life 200ml
and 500ml packets and Good life Slim 500ml packets.

PROCURMENT OF MILK:

To procure the surplus milk available in the primary milk producers’ Co-operative societies of
the union jurisdiction area.

 Organizing dairy co-operative societies at village level.

 Organizing milk procurement route to procure milk.

All the dairy co-operative societies in the union jurisdiction will be a shareholder to the affiliated
federal body where in the dairy co-operative societies will be assisted in procuring milk in both
shifts and providing technical input support to the producer members and to make remunerative
payment to the dairy co-operative societies on the quality parameter.

ANIMAL HEALTH & EMERGENCY SERVICES :

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The union is taking special care to promote the health of the cattle of member milk producers.
Veterinary health care facilities have been extended to all the DCS. Emergency veterinary routes,
Health camps, Vaccination against Foot and mouth disease are being provided to all functional
societies. Mass deworming programme is carried out twice in a year at all DCS. There is also a
backup of Veterinary First Aid Services to needy milch animals through trained DCS staff.
Introduced Godhara Shakthi' to improve quality of Milk.

ARTIFICAL INSEMINATION ACTIVITES:

Artificial insemination (AI) has been the main functional tool in dictating this upsurge of
development of Dairying in MANMUL.To improve the genetic
potentiality and Milk production of the cattle, union has gone
for cluster AI concept since 1994, and has been successful to
reach majority producers at their door steps.

FODDER ACTIVITY:

The Union has developed 10 acres farm at main dairy, in which varieties of fodder seeds and root
slips will be produced to cater to the needs of the producers. These fodder seeds will be
distributed to producers at subsidized rates. To enhance the productivity of animals, balanced
cattle feed and mineral mixtures are being supplied through the DCS against indent.

 The farmers are also educated for enrichment of dry fodder with urea for better utilization. To
reduce the production cost of milk, the farmers are being educated to establish silage
demonstration.

The farmers are being educated to cultivate azolla which is rich in protein. To avoid wastage of
fodder Chaff cutters will be provided to the interested farmers at subsidized rate.

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Training programs to enhance fodder development has been taken up at union level for elite
producers. The Union has developed 10 acres farm at main dairy, in which varieties of fodder
seeds and root slips will be produced to cater to the needs of the producers. These fodder seeds
will be distributed to producers at subsidized rates. To enhance the productivity of animals,
balanced cattle feed and mineral mixtures are being supplied through the DCS against indent.

The farmers are also educated for enrichment of dry fodder with urea for better utilization. To
reduce the production cost of milk, the farmers are being educated to establish silage
demonstration.

The farmers are being educated to cultivate azolla which is rich in protein. To avoid wastage of
fodder Chaff cutters will be provided to the interested farmers at subsidized rate.

Training programs to enhance fodder development has been taken up at union level for elite
producers.

CLEAN MILK PRODUCTION:

For improving the quality of raw milk, right from milk producer's level, a programme called
"CMP" has been launched under which 200 Bulk Milk Coolers have been installed. 648
Automatic Milk Collection units have been provided to the societies for bringing efficiency and

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total transparency in the system. Traditional manual method of milk testing at society level is
being replaced with Automatic Electronic Milko Testers (Fatomatic).

Various training programmes such as CMP Training, MCM training, President training, AI
Single & Cluster, AMCU, First Aid, Secretary, Tester training & P.D training are being arranged
from time to time to enhance work efficiency. The officers of the union are also being trained in
different disciplines.

Mandya milk union provide many more activities such as

1. Yeshaswini Health Insurance scheme which covers all medical operation costs:
There are 25 hospitals in Mandya which is working under this scheme. The Yeshaswini
corporative farmers health care scheme provides cost-effective medical facilities to
farmers across the state courtesy cooperative societies registered with the Department of
Cooperatives. This scheme targets informal workers in the lower-middle income and
middle-income groups. In other words, any peasant in Karnataka can have access to
medical facilities, provided he or she is a member of any cooperative society.
2. STEP (Support to Women Training & Education Program)

 To organize exclusive women dairy Co-operatives to take up

employment cum income generation programmes.
 To provide need based and extensive training for skill up-
gradation.
 Mobilizing women in formation of self help groups which
help them taking up income generating activities and have
easy access to credit.
 To provide support services, create backward and forward
linkages, impart field training and improve employment conditions of women
 To create awareness through designed programmes.
 To conduct programmes for building confidence among
women and developing leadership qualities.

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