Declaration: (External Guide Name

DECLARATION
I, Shivaraja B R, hereby declare that the Internship report entitled “TUMUL” with
reference to “Tumakuru Milk Union” prepared by me under the guidance of Swathi J
Assistant Professor, M.B.A Department, Channabasaveshwara Institute of Technology,
Gubbi, Tumakuru and external assistance by (External Guide Name, Designation and
Organization).
I also declare that this Internship work is towards the partial fulfillment of the university
regulations for the award of degree of Master of Business Administration by
Visvesvaraya Technological University, Belgaum.
I have undergone a summer project for a period of four weeks. I further declare that this
project is based on the original study undertaken by me and has not been submitted for
the award of any degree/diploma from any other University/ Institution.
Place: Signature:
Date: Name:
USN:
1
Channabasaveshwara Institute of Technology. Gubbi Tumakuru
ACKNOWLEDGMENT
I feel greatly honoured to be part of our beloved and highly esteemed educational institution -
Channabasaveshwara Institute of Technology, Gubbi for developing me as a real MBA
student.
I wish to place my deep sense of gratitude to Dr. Suresh D S, Principal & Director CIT who has
been a constant source of inspiration to me and have encouraged me to undertake and conclude this
project successfully.
I am very much pleased to acknowledge the support of Mr. Praveen Kumar T M Assistant
Professor & Head, Department of MBA, CIT Gubbi; his innumerable suggestion, keep interest and
constant co-operation towards my project.
I am extremely grateful to Swathi J, Assistant Professor, Department of MBA, CIT, Gubbi; who
has helped me thought this project and has given the shape with great interest.
I extend my warm regards to my external guide Name Designation and Address, for his/her support
extended during my project
Last I am grateful to my beloved parents and my friends, Faculty for their encouragement, which is
the great source of my inspiration.
Place: Gubbi
Date:00 - 10 - 2021
(Name )
(USN)
2
TABLE OF CONTENTS
SL Page
Chapter
No Number
Chapter 1: Introduction about the internship, and

1
Industry Profile
2 Chapter 2: Organization Profile:
3 Chapter 3: Mc kensy’s 7S framework
4 Chapter 4: SWOT Analysis
5 Chapter 5: Analysis of financial statement.
6 Chapter 6: Learning experience.
Bibliography
Annexure
3
LIST OF TABLE
SL Page
Table
No Number
LIST OF GRAPH
SL Page
Table
No Number
4
EXECUTIVE SUMMARY
The minor internship on overall organization study of Nandini milk has been carried out
with special reference to TUMUL.
The study is divided into two parts. In Part A, I have made an attempt to study the
History of Milk industry, Growth of the industry, Major players of Milk industry,
Market share and PEST analysis. In the Industry profile and company profile, history of
TUMUL, its major players, vision, mission and objectives of the organization, Product
profile of TUMUL, Mckinsey 7’s framework and SWOT analysis of TUMUL are
covered. KMF came into existence in 1984. Now TUMUL has its units in 13 districts of
Karnataka. It is the major producer of the Milk and Milk products in the Karnataka. It
is expected to emerge as a strong force in the global Milk dairy market in coming years.
The Tumkur Milk Union registered as “Tumkur Co-operative Milk Producers Societies
Union Limited” under registrar of Co-operative societies act on 27th June 1977. The
dairy co-operatives were established under the ANAND pattern in a three tier system.
Formation of dairy co-operative societies at village level, milk unions at district level to
take care of the procurement, processing and marketing of milk and federation at state
level to co-ordinate milk movement and marketing at the state level.
Part-B includes review of literature, research design and methodology I have adopted
while doing research. It involves title of the study, statement of the problem, objectives
of the study, source of data, tools and technique, scope of the study, sample size,
methodology and also limitations of the study.
I have made an attempt to study the marketing strategies adopted in TUMUL, pricing
strategies, product quality strategies, effectiveness of promotional strategies, advertising
strategies etc with the excellent guidelines given by marketing manager and assistant
marketing manager of TUMUL. The research objectives were studied through a
descriptive research design ‘A study on marketing strategy of Nandini Milk with special
reference to TUMUL by using both primary and secondary data. For primary data I have
prepared questionnaire with 26 questions, among which 24 are close ended questions
and are open ended questions. I have made survey among the hundred respondents to
know their opinion on effectiveness of marketing strategies adopted by Tumkur Milk
Union Limited. In data analysis and interpretation I have clearly shown the table and
5
chart along with clear interpretation. For secondary data I have used various websites,
textbooks, news papers and magazines etc.
After data analysis and interpretation, I have clearly mentioned the findings of my
study, recommendations, suggestions and my learning outcome of the study along with
conclusion. And at the end, I have mentioned the source of data, bibliography and the
questionnaire which I have used to conduct the survey among the respondents.
6
Chapter:1
INTRODUCTION
1.1 INTRODUCTION ABOUT THE INTERNSHIP:
Internship program is an integral part of academic for MBA, VTU. It provided wild,
real experience and to earn applicable knowledge and skill in career field. The
internship provide real time experience to the student what they learn theoretically in
class it should be learn practically in organization. I did internship in Marketing
department and they are very supportive to my Internship and also provide important
information which is required to Internship. Overall, I collect all information regarding
various products and services manufactured and provided by TUMUL for their
customers. & it is use full they guide me throughout my study to be successful.
1.2 INDUSTRY PROFILE:
Brief history of the industry India is the world leader in milk production with total
volume of 115 million tons. Driven by steady population growth and rising income, milk
consumption continues to rise in India. Dairy market is currently growing at an annual
growth rate of around 7 per cent in volume terms. The market size of Indian dairy
industry stands at around US$ 45 billion. Since India’s population is predominantly
vegetarian; milk serves as an important part of daily diet. Indians use milk in various
preparations such as in brewing tea and coffee, in making yogurt or curd and in preparing
many Indian dishes. For most households, milk is also a popular beverage due to its
nutritional value. In India, rural households consume almost 50 percent of total milk
production. The remaining 50 percent is sold in the domestic market. Of the share of
milk sold in the domestic market, almost 50 percent is consumed in fluid form, 35
percent is consumed as traditional products (cheese, yoghurt and milk based sweets),
and 15 percent is consumed for the production of butter, ghee, milk powder and other
7
processed dairy products (including baby foods, ice cream, whey powder, casein, and
milk albumin).
Most dairy products are consumed in the fresh form and only a small quantity is
processed for value addition. In recent years, however, the market for branded processed
food products has expanded. Although only around 2 per cent food is processed in India,
still the highest processing happens in the dairy sector, where 35 percent of the total
produce is processed, of which only 13 percent is processed by the organized sector.
GROWTH OF THE INDUSTRY
During the last three decades, our nation’s milk producers have transformed Indian
dairying from stagnation to world leadership. During this period, science and technology
(S & T) have played a critical role in supporting our farmers efforts. During the next
decade, the role will be further enhanced as we face a number of new challenges.
The dairy cooperative movement has been central to the development of dairying in
India. The inspiration for this movement was the success of the Khaira District
Cooperative Milk Producers’ Union -- better known as Amul. Founded in 1946 in
response to the exploitation of district’s dairy farmers, Amul grew rapidly from its initial
base of two societies and two hundred liters of milk. That growth, however, posed a
challenge that threatened its existence: flush season production of milk exceeded the
demand. Yet the cooperative’s success depended on accepting the farmers’ milk year
round.
8
CHAPTER-2
ORGANISATIONAL PROFILE
2.1 BACKGROUND:
Name of the Company Tumkur Milk Union (TUMUL)
Incorporated 30th March 1977
Managing Director Dr. Subraya Bhat
Industry Dairy Industry
Location Mallasandra, Tumakuru -572107
ISO certificate 22000:2005
Website Tumul.coop
Background details of the company:

The Tumkur Milk Union registered as “Tumkur Co-operative Milk Producers Societies
Union Limited” under registrar of Co-operative societies act on 27th June1977. The
dairy co-operatives were established under the ANAND pattern in a three tier system.
Formation of Village Level Dairy Co-operatives societies at village level, Milk Unions
at District Level to take care of the procurement, processing and marketing of milk
and Federation at state level to co-ordinate milk movement and marketing at the State
level.
At present 1115 MPCS are functional. New societies will be organized in the
Uncovered areas based on milk potentiality, surplus and taking the cost of milk
Transportation. There are about 206 milk collections centers are working in the milk
shed. These collection centers will be converted into societies. To encourage women
members, every year it is planned to organize 60 societies. As at the end of June-2016,
the Union has 1179 registered DCS and 1160 commissioned DCS. Out of which, 1115
9
are functional. There are 265 exclusive women DCS functioning. The marketing area
includes entire Tumkur district and a small part of Bangalore urban and rural districts.
2.1 NATURE OF THE BUSINESS
Procurement:
Presently Tumakuru Milk Union procures 7.00 lakh Kgs of milk daily from 1227 DCS
comprises of 2.78 lakh members. The union has registered a growth to the tune of 12 %
for the last 5 years.
Production:
TUMUL has a unique nature of homogenizing the milk and selling it to the consumers
through Bulk vending Booths. In addition to production of Toned milk in sachet. It also
produces Butter, Ghee, Curd, as well as Butter milk in Sachets.
2.1 VISION,MISSION AND QUALITY POLICY:
2.1.1 Mission Statement:

TUMUL is dedicated to the socioeconomic development of its milk producers by
implementing modern technology to make dairying a lucrative business through
devoted craftsmanship to give the finest services to its members plus consumers,
thereby achieve the top position in the country.
2.3.2 Values:
• Honesty
• Discipline/ Timeliness
• Quality
• Trust
• Impartial
• Savings
• Transparency
10
2.3.3 Quality Policy:
Tumkur Milk Union guarantees that consumers will receive pure and fresh milk. This is
accomplished by the implementation of a rigorous quality control system.
• The following is how quality control is organized:
• Fulfilling with legal and regulatory obligation
• Observing with legal and monitoring requirements.
• ISO 22000:2005 from SNV business self-assurance from safety System
Certificate.
• Implementing scientific processing method.
Provide training to employees.
Objectives:
• Providing assured and remunerative market for all the milk produced by the
farmer members.
• Providing hygienic milk to urban consumer.
• To build village level institutions in co-operative sector to manage the dairy
activities.
• To ensure provision of milk production inputs processing facilities.
• To facilitate rural development by providing opportunities for self-employment
at village level, preventing introducing cash economy and opportunity for steady
income.
11
2.5 Product/service profile:
Product profile / features of different products:
Toned Milk Curd Homogenized Toned Milk
Ghee Spiced Butter Milk Peda
Mysore Pak Shubham Milk Cashew Burfy
12
Some Examples:
TONED MILK:
Nandini Toned Milk is the Karnataka’s most favorite

milk. Fresh and pure milk containing 3.1% fat and 8.5%
SNF. Available in 250ml, 520 ml and 1 liter packs.
Respective MRP are Rs.9, Rs.17 and Rs.33
HOMOGENISED TONED MILK:
Nandini homogenized toned milk is pure milk containing

3.1% fat and 8.5% SNF. This is homogenized and
Pasteurized. It gives you more cups of tea or coffee and is
Easily digestible. Available in 520 ml and 1 liter packs
since January 5th 2016.
Respective MRP are Rs.17 and Rs.34
CURD:
Nandini curd made from pure milk. It’s thick and delicious
Giving you all the goodness of homemade curds. Available
in 200 ml, 250 ml, 500 ml and 1000 ml.
Respective MRP are Rs.9, Rs.11, Rs.20 and Rs.39.
PEDA:
Nandini Peda made from pure Milk Available in 100

gms and 250 gms packs.
Respective MRP are Rs.36 and Rs.80
13
3.1 Ownership Pattern
The Tumkur Milk Union has cooperative ownership pattern. A co-operative
organization is an effort of economically weak to protect themselves from their
exploitative and to promote their common economic interest on the principles of
equality and mutual help. It is a voluntary association of persons working on the noble
principle of self-help, equality, democracy and freedom. It aims to end the exploitation
by stronger sections and directs group effort to solve the problem.
3.2 Achievements /awards

year Milestones
2021 ❖ Cross 9.00 lakh Kgs Milk

Procurement
❖ Crossed 2.85 liters Milk
sales
2020 ❖ 8,77,087 liter of milk

collection And
❖ 2, 02, 120 liter of milk sold
in Mumbai market.
2019 ❖ 173513 liters of milk sold in

Mumbai market
❖ 801313 liters of record milk
collection.
2018 ❖ 2-line unit of flexi pack milk

production started in
TUMUL
❖ The curd processing
capacity increased by 1 lakh
liters
14
2017 ❖ TUMUL received best
performance award from
National dairy development
board (NDDB).
❖ Nandini marriage trust and
free hostel started
❖ 1 lake liters of milk sold in
Mumbai city.
3.3 Future Growth and Prospects:
❖ Tumul aims to expand purchases by 10 lakh in 2020-21.

❖ They intend to implement quality improvement through the "National Dairy
Development Board."
❖ They intend to open Nandini parlors in congested regions.
❖ Trupti milk's package size has been increased.
15
Chapter: 3
Mckensy’s 7S framework
2.1 Introduction to Mc Kinsey’s 7S framework
The 7-S model is better known as Mc Kinsey’s 7-S. This is because the person who
developed this model. Tom peter and Robert waterman have been consultant at
Mc Kinsey’s and company.
The seven elements namely:

1. Structure
2. Staff
3. Skills
4. System
5. Style
6. Strategy
7. Shared values
16
I. STRUCTURE
Basis for specialization coordination influenced primarily by strategy and by

organization size and diversity.
a. Organization Structure: TUMUL
17
b. Structure of Finance Department
Roles and responsibilities of finance department:
• To maintain and update the book of account time to time.

• To prepare profit and loss account, Balance sheet in the stipulated period.
• To maintain the necessary documents.
The finance department in mother dairy works as a blood for the whole plant. It
works under the control of deputy manager (finance) and rest are clerks and
assistants including cashier
18
The main function of this department is to take care of all bill passed and
bought to prepare income and profit and loss statements and also the annual
financial statements. The finance departments get funds externally from NDDB
(National dairy development board). They provide funds only for expansion.
c. Structure of Human Resource Department
Functions of Key People in HR Department:
• Planning and consolidation of manpower data and projecting same to

management for approval.
• Recruitment, promotion.
• Transfer.
• Welfare and industrial relationship.
• Identify the needs & conducting training & development programs.
• Rewarding employees and boosting their morale.
• Development programs for job rotation, job enrichment etc.
• Grievance handling & implementing corrective actions.
• Updating of personnel performance records as appraised by the concerned Head
of the department.
19
d. Structure of Marketing Department:
Functions of Key People in Marketing Department:
Functions:
• To create awareness among the consumer, door to door campaign will be made.
• Orientation training programs will be arranged for the marketing staff and board
of directors to update marketing information and strategy.
• To increase the sale and to promote brand image.
• A suitable video program will be arranged with the support by NDDB/KMF
to create awareness about the products.
Channel of distribution:
The distribution channel of milk was found to be very systematic and has made
distinct role in the successful marketing of milk.
20
II. SYSTEMS
Introduction:
Formal and informal procedures that support the strategy and structure. A system is
defined as a process or a set of processes that links and orders activities to enable work
to be done and goals to be achieved. System in simple words is a
formal and the informal procedures including compensation systems, management
information systems, performance management systems and capital allocation system
that gives every day activity.
Systems maintained by TUMUL:
• Inventory control system: TUMUL maintains the FIFO (first in first out) method
to control the inventory in the plant. Here the inventory should be maintained
correctly as it contains only perishable products.
• Milk billing system: TUMUL maintains weekly milk billing system. It has
monthly four cycles they are from 1-7, 8-15,16-23, 24 to the end of month.
• Accounting system: Currently they are using tally 7.2 as a accounting software
with VAT.
a. System at Finance Department:
The finance department operates an accounting and reporting system. The primary
purpose of the finance department is to provide sound and fiscal policies and accurate
financial reporting to support the overall fiscal management of every county. The
finance department is under the direction of the county manager and includes such
activities as payments of the county bill purchasing and assisting budget preparation,
processing payroll administration employee benefits auditing administrating debts and
account receivable and assisting deportment with annual budget another financial
matters. The department also has responsibility of overseeing all information technology
21
matters which includes the acquisition development, maintenance and use of computers
and telecommunications systems within the county.
Functions of Finance department:
• To prepare the budget

• Financial management
• Management of investment of company
• Management of Taxes
• Management of financial risk
• Maintain financial activities
• Prepare balance sheet of every year
• Reduce cost of production
b. System at Human Resource Department:
A human resource management system is a process of storing employee’s data,

managing payrolls, recruitment processes, benefit administration and keeping track of
attendance records. It ensures everyday human resource process are manageable and
easy to access. Human resource information systems provide a means of acquiring,
storing, analysing and distributing information to various stakeholders it’s also
improvement of strategic decision making.
Functions of HR Department:
• Employee’s grievance holdings.

• Employee reassign module
• Absent management
• Employee self serves
• Performance record
• Hiring
• HR planning
22
• Administration
• Retaining
c. System at Marketing Department:
A marketing department promotes your business and drives sales of its products or
services. It provides the necessary research to identify your target customers and other
audiences. Depending on the company's hierarchical organization, a marketing director,
manager or vice president of marketing might be at the helm.
Functions of Marketing Department
• Listening to customer needs
• Track trends and monitor competition
• Work and transmit brand values
• Coordinate efforts with those of the marketing partners of the company
• Innovate
• Help improve sales process and customer
• Manage marketing budget
23
III. STRATEGY
Introduction:
Action of company plans in response to or anticipation of changes in its external

environment.
A strategy is the determination of the basis long term rules and objectives of an
enterprises and adoption of the course of action allocation of resources necessary for
carrying out these goods.
Innovative Marketing Strategy adopted:
➢ Pricing strategy: The activity of fixing the price of a product is done by the
TUMUL. It fixes a common price for the product throughout the state.
TUMUL will follow that price only to sell the products produced.
➢ Marketing strategy: (advertisement, sales promotion etc):
➢ Promotional strategy: The TUMUL follows the Mix of both informative and
commercial Promotional activities, they are:
• TUMUL provides more incentives to the retailers only in case.

• TUMUL also covers the extension areas.
TUMUL gives advertisement for its milk and milk products from various modes of
advertising techniques. Some of the important modes of advertising like TV, posters,
banners, pamphlets and wall painting pictures.
24
IV. Skills
Introduction:
In TUMUL the experienced exposure with the higher echelon and mangers for over a
period of three decades as a business inherited in the family each workers, in continually
guided to attend efficiency to achieve the required quality in Production. They are aware
of the sources where the skills can be natured and who the master of particular trade.
Skills Available at TUMUL:
Different Types of Skills That The Organization Looks For:
The manager should have the managerial skill and they should have the ability to take
right decisions. They should manage the personal and make them carry out their
responsibility.
• Corporate Level: The first category consists of the people who are highly
efficient in decision making process. These people are highly qualified.
• Managerial Level: The second category is related to office work and field work.
These people are trained in computer application, secretarial skill, accounting
knowledge etc.
• Operational Level: The third category consists of workers who are actually into
the operation. These people are trained into fields like checking the quality of
milk, processing, packing etc.
Levels Skills expected Risk Involvement
Corporate High qualification, patience, High High
level experience, knowledge in
depth and Decision making
ability.
Managerial Expertise in computer Medium High
level application, secretarial skills
and Accounting knowledge.
Operational Trained in checking quality of Low Medium
level milk, processing and packing
etc.,
V. STYLE
25
Introduction:
The TUMUL is using participative style of decision making in the management level.
The style of organization consists of two components:
1. Organization culture: The dominant values are beliefs and norms, which develop
features of organization life.
2. Management Style (Fundamental responsibility of managers):
Style experiences the nature of TUMUL group. Style of leadership or relationship is the
manner in which an individual is given importance to his or her talents, values,
knowledge, and judgment, attitude to lead and relate to others.
Communication Style at TUMUL:
Virtual Communication:
A Virtual Business conducts all or most of its business via the internet and does not have
physical premises to interact with customers face-to-face. A purely virtual company may
outsource nearly all of its business functions such as product development, marketing,
sales, shipping, etc. However, most virtual businesses retain some of these activities in-
house and may still require a physical presence in the form of headquarters, warehouses,
shipping and delivery hubs, and other functions.
Virtual Business Advantages:

Virtualizing business activities has many potential advantages, including:
• Flexibility: a less rigid organization can react faster to changes in the
marketplace.
• Happier employees: working from home creates a better work/life balance for
staff.
• A larger employee base: Since employees can work anywhere, organizations
can provide employment in rural locations or areas of high unemployment.
Virtual Business Disadvantages:

The possible disadvantages of business virtualization include:
• Lack of cohesiveness in the organization due to employees being located in
diverse regions, with possible language and cultural differences.
• Lack of face-to-face interaction between employees and teams resulting in
communications-related issues. Reduced productivity from work-from-home
employees who lack self discipline.
26
VI. STAFF
27
Introduction:
Staff is nothing, but keeping the position fixed in the structure. Staff, the people in the
organization is treated in two ways. Pay scales, appraisal systems, man power planning
system etc. at the soft and it refers to morale, attitude of the people towards their work
and company. The top managers does not pay more importance for the development of
the staff, but is observed that the companies which concentrate more on the development
of managers for more performing efficiency.
Staff Profile at TUMUL:

Notification regarding vacancies, nature of job, required qualification and
skills in web site.
• Written examination.
• Group discussion.
• Personnel interview
• Selection.
Classification of staff in TUMUL is as follows:
• Technical officers- studies dairy technology
• Supervisory officers- look after the job done the workers
• Clerical officers- carry out the paper work
The number of staff working in TUMUL is 362 in addition to those 200 workers
Are taken on contract basis.
A) Total number of employees: 362

B) Total number of employees in each cadre:
• Administration department : 107
• Finance department : 30
• Marketing department : 60
• Production department : 120
• M.I.S : 15
• Purchase department : 30
VII. Shared Values
28
Introduction:
Shared values are also referred to as super ordinate goals and are the element that is in
the core of the model. It is the collective value system that is central to the
organizational culture and represents the company’s standards and norms, attitudes
and beliefs. It’s regarded as the organization’s most fundamental building block that
provides a foundation for the other five elements.
Shared Values at TUMUL:
A) Values The Organization Upholds The Most:

Guiding concepts and fundamental ideas around which a business is built must be
simple, have great meaning inside the organization even through outsiders may not see
or understand them. Shared values are identified by which a company is known
throughout its business areas these values must be explicitly stated as both corporate
objectives and individual values. Some of the shared values of TUMUL are:
1. Honesty
2. Discipline
3. Quality
4. Impartiality
5. Cost effectiveness.
B) Organization’s Efforts In Ensuring Adherence To The Values:
Honesty:
1. Prompt and regular payments to farmers by milk societies.
2. Accuracy in quantity of milk.
Discipline:
1. Workers are provided with uniform, they are suppose to wear it regularly.
2. On time delivery of Milk to distributors.
Quality:
1. Usage of equipments like Lactometer to measure the quality of milk.
2. Sterilization of milk cans before filling it.
Impartiality:
1. Treatment of operational level employees and managerial level employees
Impartially.
2. Uniforms are provided to ensure impartiality.
29
Chapter: 4
SWOT – ANALYSIS
30
4.1 Introduction to SWOT Analysis:
The SWOT approach is distillation of the steps & considerations that should be taken
to formulate an effective strategic plan. The terms SWOT is the acronym for strengths
Weakness, Opportunities & Threats.
4.2 Strength of TUMUL:
• NANDINI is a trusted household brand name.
• Maintaining standard quality milk and milk products.
• ISO certified dairy.
• Large network of organization suppliers of the procurement of milk.
4.3 Weakness of TUMUL:

• Delay in decision making.
• Need more counseling interaction between employees.
• Inter-union competition.
4.4 Opportunities of TUMUL:

• To market the products at national level.
• Innovation for the introduction of new products.
• The company can go for technological advancements.
• Expansion of products line in current market.
4.5 Treats of TUMUL:

• Private dairy competition, procurement and sales.
• Competition from local milk vendors.
• Presence of duplicate milk and milk products in the market.
• A group of unorganized local vendors can dominate the market.
Chapter: 5
ANALYSIS OF FINANCIAL STATEMENT
31
Introduction to Financial Statement Analysis:
The financial statements of a company record important financial data on every aspect
of a business’s activities. As such they can be evaluated on the basis of past, current,
and projected performance. In general, financial statements are cantered around
generally accepted accounting principles (GAAP) in the U.S. These principles require a
company to create and maintain three main financial statements: the balance sheet, the
income statement, and the cash flow statement. Public companies have stricter standards
for financial statement reporting. Public companies must follow GAAP standards which
require accrual accounting. Private companies have greater flexibility in their financial
statement preparation and also have the option to use either accrual or cash accounting.
Key Points to be considered for Financial Performance Analysis:
A company’s financial position and performance can be of significant interest to various

stakeholders. For example, banks and other financial institutions, employees, tax
authorities and potential investors. Some stakeholders are looking at specifics, whereas
other stakeholders may just want an overview of the financial position (using the balance
sheet) or financial performance (using the profit and loss account).
Understanding Financial Analysis:

Financial analysis can essentially be split into three aspects: profitability, liquidity and
risk. Each stakeholder will want to look at each one in isolation, or maybe have an
interest in all three aspects. Regardless of which area they are interested in, stakeholders
are guaranteed to be interested in the company’s ability to generate sufficient profits to
sustain its going concern.
Ratio Analysis:
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick
indication of a firm's financial performance in several key areas. The ratios are
32
categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset
Management Ratios, Profitability Ratios, and Market Value Ratios.
OBJECTIVES OF RATIO ANALYSIS:
• Measuring the profitability: the profitability of the business can be measured

by calculating gross profit, net profit, expenses ratio and other.
• Judging the Operational Efficiency of Business: The operational efficiency of
the business can be ascertained by calculating operating ratio
• Assessing the Solvency of the Business: it can be ascertained whether the firm
is solvent or not solvent. solvency ratio show relationship between total liabilities
and total assets
• Measuring short and long-term financial position of the company: ratio
analysis helps in knowing the short term and long-term financial position of the
business by calculating various ratio
• Facilitating comparative analysis of the performance: every firm has to
compare its present performance with the previous and discover the plus and
minus points. comparison with plus performance of other competitive firms can
also be made
1. Advantages /Uses of Accounting Ratio:
• Helpful In Financial Analysis: Financial analysis is easier if accounting ratios

are used to analyse the different financial statement relating to financial position
of the business, whether it is relating to short term solvency or long-term
solvency of the enterprise
• Helpful In Explain Financial Health Of The Enterprise: Ratio analysis is used
to indicate financial health of the, i.e. Debt/equity ratio can be calculated
• Helpful In locating shortcomings /weakness: the financial analyst can also
point out the deficiency’s health of the business so that corrective steps may be
taken accordingly
• Helpful In future forecasting: according ratio are very important tools in the
hands of management they are also helpful in predicting steps may be calculated
Helpful In Comparing Inter-Firm performance: Inter firm comparison is
possible through ratio analysis.
33
• Helpful In Simplifying Accounting Figures: The absolute figures carry no
useful information such as profits of X Co., is ₨5lacs, but profits are related to
capital employed or sales, then it gives, then it gives a useful and meaningful
information.
• Helpful In Assessing Operation Efficiency of the Business: Operating
efficiency of the enterprise can be judged by calculating certain ratios, these
ratios are related to solvency, liquidity and profitability of the business enterprise.
2. Disadvantages of accounting Ratio
• False Results: Ratios are based upon the financial statement .in case financial
ratio is incorrect or the data upon which ratios are based is incorrect
• Limited Use Of Single Ratio: A single ratio, usually, does not convey much of
sense to make a better interpretation, a number of ratio have to be calculated
which is likely to confuse the analyst then help him in making any meaningful
conclusion
• Absence Of Standard University Accepted Terminology: Different meaning
are given to particular term such as some firm take profit before interest and
tax; other may take profit before interest and tax
• Ignoring qualitative Factors: Ratio analysis is the quantitative measurement
of the performance of the business. it ignores the qualitative aspect of the firm
• Window dressing: Financial statement can easily be window dressed to present
a better picture of its financial and probability position to outsides.
• Personal bias: Ratio are only means of financial analysis and not an and in
itself. ratio have to be interpreted and different people may interpret the same
ratio in different ways
Incomparable: Not only industries differ in their nature but also the of the firms of the
similar business widely differ in their size and accounting procedure, etc. . . .it makes
comparison of ratio difficult and misleading. moreover, comparison are made difficult
in definition of various financial terms used in the ratio analysis.
CURRENT RATIO
The current ratio is liquidity ratio that measures a company’s ability to pay short term
and long term obligation.
FORMULA:
CURRENT RATIO= CURRENT ASSET/ CURRENT LIABILITIES
34
PARTICULARS CURRENT ASSET CURRENT CURRENT
(in crore) LIABILITIES RATIO
MARCH 2021 12501.00 (in crore)
7193.00 1.74
MARCH 2020 9,534.83 5,243.88 1.82
MARCH 2019 9085.26 5,169.25 1.76
Analysis: Above table shows clearly analyzed that in the year 2019 the current ratio was
found to 1.76 and in 2020 it was increased by 1.82 but in 2021 it was decreased 1.74
CURRENT RATIO
14000
12501
12000
10000 9534.83
9085.26
8000 7193
6000 5243.88 5169.25
4000
2000
1.74 1.82 1.76

0
2021 2020 2019
CURRENT ASSET CURRENT LIABILITY CURRENT RATIO
Interpretation:
The above graph clearly shows that the current ratio was increased from the year 2021
to 2020. Because the company can easily pay its short term loans .so it has been advised
to company maintain the same or improve it for coming years. And also the current ratio
was decreased from the year 2020 to 2019. Because the company can’t easily pay its
short term loans. So it has been advised to company improve it for coming years.
DEBT EQUITY RATIO
This ratio is ascertained to determine long-term solvency position of a company. Debt
35
equity ratio is also called ‘external-internal equity ratio’.
FORMULA:
DEBT EQUITY RATIO= TOTAL DEBT/NET WROTH
PARTICULARS TOTAL DEBT NET WROTH DEBT EQUITY

(in crore) (in crore) RATIO
2021 2381.00 7553.00 0.32
2020 2492.15 6824.86 0.37
2019 2050.94 6181.72 0.33
Analysis: The above table shows that debt equity ratio will be increased by 0.37 in the
year2020 when compare to past year 2019. So, it is not fair to the company. And also
the debt equity ratio will be decreased by 0.32 in the year 2021 when compare to past
year 2020. So it is fair to the company.
Debt equity ratio
Chart Title
8000
7000 7553
6824.86
6000
6181.72
5000
4000
3000
2000 2381 2492.15

2050.94
1000
0.32 0.37 0.33
0
2021 2020 2019
TOTAL DEBT NETWORTH DEBT EQUITY RATIO
36
Interpretation:
The above chart represents that debt equity ratio of a company has increases from 2019
to 2020.Because the company is getting the higher debt due to the higher return. The
debt equity ratio of a company has decrease from 2020 to 2019. Because the company
is getting the lower debt due to the lower return.
NET PROFIT RATIO
This ratio is also called net profit to sales ratio. It is a measure of management’s
efficiency in operating the business successfully from the owner’s point of view It
indicates the return on shareholders’ investments. Higher the ratio better is the
operational efficiency of the business concern.
FORMULA:
NET PROFIT RATIO=NET PROFIT/NET SALES*100
PARTICULARS NET PROFIT NET SALES NET PROFIT RATIO

(in crore) (in crore)
2021 877.00 19046.00 4.6%
2020 1517.63 19732.26 7.7%
2019 1374.36 18885.34 7.23%
Analysis: The above table clearly analyzed that in the year 2019 the net profit ratio was
found to be 7.23% and in the year 2020 it is increased by 7.7% In the year 2020 the net
profit ratio was found to be 7.7% and in the year 2021 it was decreased 4.6%
NET PROFIT RATIO
37
Chart Title
25000
19732.26
20000 19046 18885.34
15000
10000
5000
877 1517.63 1374.36

4.6 7.70% 7.23%
0
2021 2020 2019
NET PROFIT NET SALES NET PROFIT RATIO
Interpretation:
The above chart represents the net profit ratio of the company has increased from 2019
to 2020 because the company use its resources to generate sales so higher ratio is always
more favorable to company.
The net profit ratio of the company has decreased from 2020 to 2021. It is not favorable
to company.
RETURN ON INVESTMENT:
This ratio is called ‘Return on capital employed’. It measures the sufficiency or

otherwise of profit in relation to capital employed
FORMULA:
RETURN ON INVESTMENT=NET PROFIT/TOTAL ASSET
38
PARTICULARS Net profit TOTAL ASSET RETURN ON
(in crore) (in crore) INVESTMENT
2021 877.00 15860.00 5.5%
2020 1517.63 13187.95 11.51%
2019 1374.36 11469.82 11.98%
Analysis: The above table shows that return on investment will be decreased by 11.51
in the year 2020 when compare to past year it will not be fair for shareholders /company.
The return on investment will be decreased by 5.5% in the year 2021. When compare to
past year it will not be fair for shareholders/ company.
NET PROFIT RATIO:
18000
15860
16000
14000 13187.95
12000 11469.82
10000
8000
6000
4000
2000 1517.63 1374.36

877
5.50% 11.51% 11.98%
0
2021 2020 2019
NET PROFIT TOTAL ASSET RETURN ON INVESTMENT
Interpretation:
The above chart represents that return on investment of a company has decreases from
2019 to 2020. So the shareholders are getting low return on their investment. And also
the return on investment of a company has decreased from 2020 to 2021. So the
shareholders are getting low return on their investment.
39
TOTAL ASSET TURNOVER RATIO
Total Asset turnover or asset turns are a financial ratio that measures the efficiency of a
company's use of its assets in generating sales revenue or sales income to the company.
Companies with low profit margins tend to have high asset turnover, while those with
high profit margins have low asset turnover.
FORMULA:
TOTAL ASSET TURNOVERRATIO=NET SALES/TOTAL ASSET
PARTICULARS NET SALES TOTAL ASSET TOTAL ASSET

(in crore) (in crore) TUROVER RATIO
2021 19046.00 15860.00 1.20
2020 19732.26 13187.95 1.49
2019 18885.34 11469.82 1.65
Analysis: The above table clearly analyzed that in the year 2019 the total asset turnover
ratio was found to be 1.65 and in the year 2020 and 2021 it was decreased by 1.49 and
1.20
40
TOTAL ASSET TURNOVER RATIO:
25000
19732.26
20000 19046 18885.34
15860
15000
13187.95
11469.82
10000
5000
1.2 1.49 1.65

0
2021 2020 2019
NET SALES TOTAL ASSET TOTAL ASSET TURNOVER RATIO
Interpretation:
The above chart represents the asset turnover of the company has decreased from 2019
to 2020 and 2021.Because the company doesn't use its assets to generate sales so lower
ratio is always less favorable to company.
41
Chapter: 6
LEARNING EXPERIENCE
It had been privilege to undertake an organization study at “the largest and most
profitable company”. It was a wonderful experience and indeed a great learning working
in such a company which offers high quality products.
➢  part from learning has to how the organization function, its structure,
departments, policies and processes the study has opened the doors to explore the
organization.
➢ The commitment of the employees towards quality is great inspiration.
➢ he cordial relationship between the workers and the management has helped in
understanding the facts that, the success of the organization depends not on
employee or on management alone but it depends on the combined efforts of both
the employees and management.
• The NANDINI is popular for its high quality of Milk.

• NANDINI ensures supply of the very good quality milk.
• The success of NANDINI depends upon the temperament (characteristics of the
specific persons) of the people living in the urban area of its operation.
• Sales promotion techniques and activities of the KMF are very good.
• The KMF is facing competition from Local milk suppliers in rural areas and
facing competition from other branded milk in urban areas.
• Nandini is the Market leader in Milk and Milk products, where as it is most
commonly purchased Brand by Majority of respondents. The reason for
consumers Non satisfaction is Non availability of Nandini milk when needed at
odd times, especially on holidays.
• The success of Nandini milk and its products depend prominently upon buying
behavior of people living in the urban areas. Hence more focus to be given to the
urban areas where present market can be expanded.
42
BIBLIOGRAPHY
➢ WEBSITES:
• www.kmfnandini.com
• www.Indiandairy.com
• www.ebsco.co.in
• www.ibef.com
43
ANNEXURE
BALANCE SHEET
BALANCE SHEET OF MAR 21 MAR 20 MAR 19

TUMUL (in Rs. Cr.)
12 12 12
months months months
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 89.00 88.78 88.78
TOTAL SHARE 89.00 88.78 88.78

CAPITAL
Reserves and Surplus 7,464.00 6,736.08 6,092.94
TOTAL RESERVES 7,464.00 6,736.08 6,092.94

AND SURPLUS
TOTAL 7,553.00 6,824.86 6,181.72

SHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
Long Term Borrowings 0.00 0.00 0.00
Deferred Tax Liabilities 0.00 0.00 0.00

[Net]
44
Other Long Term 971.00 966.75 0.00
Liabilities
Long Term Provisions 143.00 152.46 118.85
TOTAL NON- 1,114.00 1,119.21 118.85

CURRENT
LIABILITIES
CURRENT
LIABILITIES
Short Term Borrowings 4,094.00 2,133.17 2,287.63
Trade Payables 695.00 509.94 772.34
Other Current Liabilities 2,381.00 2,492.15 2,050.94
Short Term Provisions 23.00 108.62 58.34
TOTAL CURRENT 7,193.00 5,243.88 5,169.25

LIABILITIES
TOTAL CAPITAL AND 15,860.0 13,187.95 11,469.82

LIABILITIES 0
ASSETS
NON-CURRENT
ASSETS
Tangible Assets 1,880.00 1,964.92 1,007.04
Intangible Assets 55.00 64.53 38.29
Capital Work-In-Progress 17.00 10.72 25.11
Other Assets 24.00 24.02 24.02
45
FIXED ASSETS 1,984.00 2,067.25 1,094.98
Non-Current Investments 759.00 909.10 806.70
Deferred Tax Assets [Net] 105.00 172.09 84.76
Long Term Loans And 146.00 140.59 118.97

Advances
Other Non-Current Assets 365.00 364.09 279.15
TOTAL NON- 3,359.00 3,653.12 2,384.56

CURRENT ASSETS
CURRENT ASSETS
Current Investments 2,753.00 74.01 69.22
Inventories 7,984.00 7,740.62 6,719.18
Trade Receivables 291.00 214.44 358.23
Cash And Cash 512.00 356.00 1,001.00

Equivalents
Short Term Loans And 103.00 54.35 244.04

Advances
Other Current Assets 858.00 1,095.41 693.59
TOTAL CURRENT 12,501.0 9,534.83 9,085.26

ASSETS 0
TOTAL ASSETS 15,860.0 13,187.95 11,469.82

0
46
PROFIT AND LOSS ACCOUNT
PROFIT & LOSS MAR 21 MAR 20 MAR 19

ACCOUNT OF TUMUL
(in Rs. Cr.)
12 12 12
months months months
INCOME
REVENUE FROM 19,046.00 19,732.26 18,885.3

OPERATIONS 4
[GROSS]
Less: Excise/Service 0.00 0.00 0.00

Tax/Other Levies
REVENUE FROM 19,046.00 19,732.26 18,885.3

OPERATIONS [NET] 4
TOTAL OPERATING 20,602.00 20,009.64 19,069.9

REVENUES 7
Other Income 181.00 146.41 178.50
TOTAL REVENUE 20,783.00 20,156.05 19,248.4

7
EXPENSES
Cost Of Materials 13,143.00 12,489.05 11,822.0

Consumed 4
Operating And Direct 0.00 0.00 0.00

Expenses
47
Changes In Inventories Of 164.00 -835.81 -663.78
FG,WIP And Stock-In
Trade
Employee Benefit 911.00 1,040.12 878.79

Expenses
Finance Costs 181.00 149.48 44.45
Depreciation And 331.00 309.69 138.89

Amortization Expenses
Other Expenses 2,221.00 2,039.98 2,201.79
TOTAL EXPENSES 19,413.00 18,051.08 17,251.1

0
PROFIT/LOSS 1,370.00 2,104.97 1,997.37

BEFORE
EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX
Exceptional Items -137.00 0.00 -70.00
PROFIT/LOSS 1,233.00 2,104.97 1,927.37

BEFORE TAX
TAX EXPENSES-
CONTINUED
OPERATIONS
Current Tax 351.00 551.84 602.01
Less: MAT Credit 0.00 0.00 0.00

Entitlement
Deferred Tax 5.00 35.50 -49.00
48
Tax For Earlier Years 0.00 0.00 0.00
TOTAL TAX 356.00 587.34 553.01

EXPENSES
PROFIT/LOSS AFTER 877.00 1,517.63 1,374.36

TAX AND BEFORE
EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 877.00 1,517.63 1,374.36

CONTINUING
OPERATIONS
PROFIT/LOSS FOR 877.00 1,517.63 1,374.36

THE PERIOD
49

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DECLARATION

Chapter 1: Introduction about the internship, and

2 Chapter 2: Organization Profile:

3 Chapter 3: Mc kensy’s 7S framework

4 Chapter 4: SWOT Analysis

5 Chapter 5: Analysis of financial statement.

6 Chapter 6: Learning experience.

1.1 INTRODUCTION ABOUT THE INTERNSHIP:

1.2 INDUSTRY PROFILE:

GROWTH OF THE INDUSTRY

Name of the Company Tumkur Milk Union (TUMUL)

Incorporated 30th March 1977

Managing Director Dr. Subraya Bhat

Industry Dairy Industry

Location Mallasandra, Tumakuru -572107

ISO certificate 22000:2005

Background details of the company:

2.1 NATURE OF THE BUSINESS

2.1 VISION,MISSION AND QUALITY POLICY:

2.1.1 Mission Statement:

Toned Milk Curd Homogenized Toned Milk

Ghee Spiced Butter Milk Peda

Mysore Pak Shubham Milk Cashew Burfy

Nandini Toned Milk is the Karnataka’s most favorite

HOMOGENISED TONED MILK:

Nandini homogenized toned milk is pure milk containing

Nandini Peda made from pure Milk Available in 100

3.2 Achievements /awards

2021 ❖ Cross 9.00 lakh Kgs Milk

2020 ❖ 8,77,087 liter of milk

2019 ❖ 173513 liters of milk sold in

2018 ❖ 2-line unit of flexi pack milk

3.3 Future Growth and Prospects:

❖ Tumul aims to expand purchases by 10 lakh in 2020-21.

The seven elements namely:

Basis for specialization coordination influenced primarily by strategy and by

a. Organization Structure: TUMUL

Roles and responsibilities of finance department:

• To maintain and update the book of account time to time.

c. Structure of Human Resource Department

Functions of Key People in HR Department:

• Planning and consolidation of manpower data and projecting same to

Functions of Key People in Marketing Department:

Systems maintained by TUMUL:

a. System at Finance Department:

Functions of Finance department:

• To prepare the budget

b. System at Human Resource Department:

A human resource management system is a process of storing employee’s data,

• Employee’s grievance holdings.

Action of company plans in response to or anticipation of changes in its external

Innovative Marketing Strategy adopted:

➢ Marketing strategy: (advertisement, sales promotion etc):

• TUMUL provides more incentives to the retailers only in case.

Different Types of Skills That The Organization Looks For:

Communication Style at TUMUL:

Virtual Business Advantages: