CHAPTER-1

Introduction

Karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13 milk unions
in the state and thus forming the state level apex organization. As a co-operative apex body of
the state of Karnataka, it represents dairy farmers’ organization and also implements dairy
development activities to achieve the following objectives:

 Provides assured and remunerative market for the milk produced by the farmer members.
 Provide quality milk to urban consumers.
 To build village level institutions in co-operative sectors to manage the dairy activities.
 To ensure provision of milk production inputs, processing facilities and dissemination of
know-how.
 To facilitate rural development by providing opportunities for self-employment at village
level, preventing migration to urban areas, introducing cash economy and opportunity for
steady income.

Origin of milk industry

Earlier people used to have animal milk for food. However, the people of ancient Babbly
Lon, Egypt and India raised dairy cattle as early as 400 B.C. At that time, the family cow
was the cheap source of milk. A family used as much it needed and traded or sold the rest to
neighbor.

A dairy industry grew; several cities passed laws to control the sale of milk. Some of these
laws made it illegal to add water to milk or to remove cream from milk. However, none of the
early laws set health standard for milk. Many dairies added chemical preservatives to milk.
But after sometimes these chemicals were found to be harmful, laws prohibited their use.
Gradually cities and states began supervising the milk industry in order to protect public
health. In 1856 an American inventor named Gail Borden received a patent for the first
successful milk condensing process. About in 1885, dairies first used glass, jars and bottles,
in which workers were filled milk by hand. The invention of bottling machine in 1886 has
proved that filling the containers easier and faster.

In 1890, Stephen M. Babcock, an American agricultural chemist developed a list to measure

the fat content of the milk. The market value of milk depends on its fat content; which dairies
still determine by the Babcock test. In 1890s a few dairy plants introduced pasteurization; a
process invented by the French scientist Louis Pasteur. One of the greatest epics -
Mahabharata gives us the fact that dairying has an age-old background. In those days cattle
were treated as God. As the years passed, people started using cattle to satisfy their needs of

1
 milk, milk products and for cultivation. But during olden day's milk and milk products were
not sold. Only after 1940's dairying was started in an organized manner, in those days’ dairies
were encouraged to make pasteurized butter, mainly for the British army. One of such firm
was "Urban Milk Supply Scheme". After independence greater Bombay Milk Scheme has
come into existence. By this time many states government set up composite "Dairy
Development Department" to facilitate milk production, procurement, processing and
marketing. A dairy is place which deals with collection, processing of milk and
manufacturing of various milk products on an industrial scale.

List of co-operative milk producers under Karnataka milk federation

 Bangalore Milk Union

 Belgaum Milk Union
 Bellary Milk Union
 Bijapur Milk Union
 Dharwad Milk Union
 Gulbarga Milk Union
 Hassan Milk Union
 Kolar Milk Union
 Mandya Milk Union
 Mysore Milk Union
 Shivmoga Milk Union

 Tumkur Milk Union

2
Key peoples of the industry
Place of
Name Designation
working

B.C SATEESH, KCS MANAGING DIRECTOR / CEO KMF CO

M. RAGHUNANDAN DIRECTOR (MARKETING) KMF CO

RAMESH B. KONNUR DIRECTOR (FINANCE/SYSTEMS) KMF CO

DIRECTOR (CENTRAL
GOVINDEGOWDA KMF CO
VIGILANCE TEAM)

MUNIREDDY N. DIRECTOR (QA/PRODUCTION) KMF CO

M. S. SUHAEL DIRECTOR (PURCHASE) KMF CO

NALINI H. J DIRECTOR (CTI) KMF CO

NALINI H. J DIRECTOR (MIS) KMF CO

H. K. RAGHAVENDRA DIRECTOR (ENGINEERING) – 1 KMF CO

RAMESH B. KONNUR DIRECTOR (ADMIN) KMF CO

P RAMAKRISHNAPPA DIRECTOR (ENGINEERING) – 2 KMF CO

DR. BUKKA MALLIKARJUNA DIRECTOR (AH/STEP) KMF CO

3
Union chiefs
Name Designation Place of working

Dr. S.T. SURESH MD BENGALURU MILK UNION

GOPALAIAH MD HASSAN MILK UNION

Madhusudhan MD KOLAR MILK UNION

Dr. P. R. MANJESH MD MANDYA MILK UNION

Dr. B.P SURESH MD TUMAKURU MILK UNION

B.N. VIJAY KUMAR MD MYSURU MILK UNION

Dr. K. S. BASAVARAJ MD SHIVAMOGGA MILK UNION

D.ASHOK MD DAKSHINA KANNADA MILK

UNION

Dr. K. M. LOHITHESWAR MD DHARWAD MILK UNION

M. RAJASHEKARAMURTHY MD CHAMARAJNAGAR MILK

UNION

SRINIVASAN G MD BELAGAVI MILK UNION

T. THIRUPATHAPPA MD BALLARY MILK UNION

Dr. S. DIXIT MD VIJAYAPURA - BAGALKOT

MILK UNION

B.S. SIDDEGOWDA MD KALABURAGI MILK UNION

S.G. SHEKAR MD HAVERI MILK UNION

Smt. R. PADMAVATHI MD CHIKKABALLAPURA MILK

UNION

4
Unit chiefs

Name Designation Place of working

Dr. BUKKA MALLIKARJUN DIRECTOR NANDINI SPERM STATION

H.S. MANJUNATH DIRECTOR MOTHER DAIRY

P.S. RANGASWAMY DIRECTOR NANDINI HITECH PRODUCT

PLANT, CHANNARAYAPATNA

G. M. CHANDRAPPA DIRECTOR RAMANAGAR POWDER PLANT

Dr. KAMKERI C. H. MD DEMPO DAIRY, ASANGI

D.VIVEK DIRECTOR CATTLE FEED PLANT, HASSAN

Dr. M. B. MADIWALAR G.M CATTLE FEED PLANT, DHARWAD

B. T. KISHORE G.M CATTLE FEED PLANT,

SHIKARIPUR

KRISHNAPPA M. G.M CATTLE FEED PLANT,

RAJANUKUNTE

H Mahesh G.M CATTLE FEED PLANT, GUBBI

H.C. CHIDAMBAR MURTHY G.M NANDINI MILK PRODUCTS

B. DINAKAR G.M NANDINI PACKAGING FILM

PLANT

Dr. M. B. MADIWALAR G.M TRAINING CENTRE, DHARWAD

V. RAVIKIRAN INCHARGE GM BALLARI ICE CREAM PLANT

Dr. P. V. PATIL INCHARGE GM TRAINING CENTER, GULBARGA

S.C. ARVIND JOINT DIRECTOR TRAINING CENTER MYSORE

5
DAIRYING IN INDIA

Around 1500 to 2000 the Aryans were the first to domesticate cattle use for tilling their land
and obtain milk to be consumed as food. It was the Aryans who priced the milk of a cow
more than its meat, forbade its slaughter and created legends about it, even worshipped it.
Hindus even today consider cow as sacred. More of the total production of milk is obtained
from cows. In India, dairying has been practiced as a rural cottage industry since the remote
past. Semi commercial dairying started with establishment of military dairy farms and
cooperative milk unions throughout the country towards the end of the 19th century.
However, market milk technology may be considered to have commenced in 1956 with the
functioning of the central dairy of Aarey milk project technology in 1956 with the
establishment of AMUL dairy.

CHAPTER 2
COMPANY BACKGROUND
6
Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the control of
the Department of Animal Husbandry and Veterinary Services of Karnataka State, which was
transferred to Karnataka Dairy Development Corporation in the year 1974. The capacity was
expanded to 60 TLPD in 1980 under the scheme operation flood and transferred to the
Karnataka Milk Federation in 1984. As per the Government policy the Dairy and its Chilling
Centers were handed over to Mysore Milk Union on 01.06.1987. The capacity was expanded
to 100 TLPD under the Operation Flood II and further expanded to 180 TLPD under
Perspective Plan I
Under the World Bank aided Karnataka Dairy Development Projects, the activities on Dairy
Development were taken up in the year 1975. The Mysore District Co-operative Milk
Producers Societies Union Ltd was registered on 23.11.1976, having the jurisdiction extended
to the entire Mysore District and Five Talks of Mandy District. The Union undertook the
work of organization of Milk Co-operatives in ‘AMUL Pattern’ with the main objective of
socio-economic reformation of the farmers in the rural areas through Dairying as main
subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Co-Operative Milk
Producers Societies Union Ltd from 01.04.1987. Consequent to the bifurcation of Mysore
District into Mysore and Chamarajanagar Districts, this Union is renamed as Mysore-
Chamarajanagar District Coop Milk Producers Societies Union Ltd. Later from April 2015
Bifurcation of Mysore-Chamarajanagar district milk union as Mysore milk union and
Chamarajanagar milk union.

VISION AND MISSION

7
 Vision
 To march forward with a missionary zeal which will make KMF a trailblazer of exemplary
performance and achievements beckoning other Milk Federations in the country in pursuit of
total emulation of its good deeds.
 To ensure prosperity of the rural Milk producers who are ultimate owners of the Federation.
 To promote producer oriented viable cooperative society to impart an impetus to the rural
income, dairy productivity and rural employment.
 To a bridge the gap between price of milk procurement and sale price.
 To develop business acumen in marketing and trading disciplines so as to serve consumers
with quality milk, give a fillip to the income of milk producers.
 To compete with MNCs and Private Dairies with better quality of milk and milk products and
in the process sustain invincibility of cooperatives.
Mission

Heralding economics, social and cultural prosperity in the lives of our milk producer
members by promoting vibrant, self-sustaining and holistic cooperative dairy development in
Karnataka State.

Values
Honesty, Discipline /Timeliness, Quality, Trust, Impartial, Savings, Transparency.

QUALITY POLICY

 Mysore District Milk Union is committed to procure and supply safe Milk & Milk Products
to the satisfaction of consumer by:
 Complying with statutory and regulatory requirements
 Constant communication with all parties involved in the food chain
 Adopting GHP, GMP & HACCP
 Adopting scientific processing methods
 Training of employees Union/Dairy Co-operative societies.

Products and services profile

8
The product profile refers to the study of the products information of the company. The
various milk and milk products manufactured at MYMUL are shown below:

The following are the products and their quantity offered by MYMUL:

Fig 2.1: Toned milk Homogenized toned milk

Fig 2.2: Full cream milk and Ghee

Fig 2.3: Peda and Butter

9
 Fig 2.4: Paneer and Khova

Fig 2.5: Masala majjige and Sweet lassi

Fig 2.6 Mysore pak and Curd

10
Fig 2.7: Badam powder

Fig 2.8: Chocolate bite

Fig 2.9: Flavored milk

Fig 2.10: Gulab Jamoon mix

11
Nandini 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 520 ml & 1liter packs.
Nandini Homogenized Toned Milk
Nandini Homogenized Toned Milk is pure Milk containing 3.1% Fat & 8.5% SNF. This is
Homogenized and pasteurized. It gives you more cups of tea or coffee and is easily
digestible.
Nandini full cream milk

Full milk; contain 6.1% fat and 9%solid not fat. Rich creamier and tasted milk, ideal for
preparing homemade sweets and savories. Available in 500ml.

Nandini Ghee

A taste of purity, Nandini Ghee made from pure butter. It is fresh and pure with a delicious
flavor. Hygienically manufactured and packed in a special pack to retain the goodness of pure
ghee. Available in 200 ml, 500 ml, 1000ml packs & 15 kg tins.

Nandini Peda

Nandini Peda made from pure Milk. Available in 100gms & 250gms packs.
Nandini Peda made from pure Milk. Available in different flavor like Kesar peda.

Paneer

It is a tasty, wholesome and nutritious supplement for a variety of dishes. Add Paneer to
make dishes creamy and mouth-watering. Available in 200g and 1kg packs. Can be stored for
30 days when kept frozen.

Khova
Add Khova to preparations like carrot halwa, gulab jamoon etc. and increase the richness of
its taste. Available in 200g packs. Can be stored for 30 days when kept frozen.
Cashew Burfi
Pure Milk based cashew burfi is available in 250gms
Nandini Curd

Nandini Curd made from pure milk. It’s thick and delicious giving you all the goodness of
homemade curds. Available in 250 grams and 500 grams packs.

12
Nandini Sweet Lassi

Nandini Sweet Lassi the most refreshing drink made from fresh curd.Best alternative to cool
drinks during summer.

Nandini Peda Kesar

Nandini Peda made from pure Milk.Available In different flavours like Kesar & Elaichi .

Good life

Cow’s pure milk. UHT processed, bacteria free in a tamper proof tetra fino pack which keeps
this milk fresh for 60days without refrigeration until opened. Available in 500ml and in 200
ml bricks.

Badam burfi

Badam burfi is a delicious treat made up of milk and it can be stored at room temperature.

Flavored milk

Sterilized flavored milk. Nutritious and wholesome milk available in 5 different flavors,
pineapple, rose, badam, pista and natural orange.

Masala majjige

It is one of the drinks available in the dairy. Its prepared using masala ingredients.

AREAS OF OPERATION

As a district milk union under KMF, individually the union has no opportunities to expand
their operation because the MYMUL is structured under KMF as a district milk union of
Mysore district. The union itself acts as a branch of KMF but the union has opportunities by
way of marketing its milk products out of its limited market borders means of its district
market borders.The district milk unions are controlled by the KMF, which acts as a mother
organization to all other district unions in Karnataka. The union receives all types of demand
orders from in and outside the country. Especially the milk powder has more demand from
foreign countries. The union will produce other milk products according to their demand rate.

13
 PROCUREMENT

To procure the surplus milk available in the primary milk producers’ Co-operative societies
of the union jurisdiction area.
• Organising dairy co-operative societies at village level.
• Organising 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.

TECHNICAL INPUT ACTIVITIES

It is one of the fundamental objectives of MYMUL to carry out activities for enhancing Milk
production in its Milk shed area. In view of this, various technical input services like
veterinary health care, artificial insemination services, vaccination, supply of balanced cattle
feed and quality fodder seed etc. are provided for enhancing milk production and economic
development of farming community.

ANIMAL HEALTH AND EMERGENCY SERVICES

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 Trio-NB-Sac and 'Godhara Shakthi' to improve quality of Milk.
STEP (Support to Women Training & Education Program)

The Programme of STEP aims

 To organize exclusive Women Dairy Cooperatives and to take up employment cum income
generation activities.
 To provide need based and extensive training for skill upgradation.
 Mobilizing women in formation of Self help Groups as a tool for income generating activity
and for easy access to credit.

14
 Competitors of MYMUL

The major competitors of MYMUL are as follows:

 Jersey
 Arogya
 Gomatha
 Thirumala
 Swastika
 Loose milk vendors
 Heritage

Jersey

 Plant located at Andhra Pradesh

 Sale in union jurisdiction 45tlpd (100 tlpd in city)
 MRP is 35/litre seller rate rs.37 based on quantity
 Commission ranges from 40-70piasa/litre
 Quality perception-thick and longer shelf life
 Flexible distribution-retailers, wholesalers or anyone willing to sell
 Payment’s cash and carry or while collecting empty crates on return trip.
 Availability- mostly retail outlets and now capturing institutional sales by any means.
 Vigorous advertisement especially at the point of purchase.

Dodla

 Plant located at Nellore

 Availability of raw materials at cheaper rate.
 sale in union jurisdiction 18tlpd
 MRP rate Rs.60 per litre-seller rats Rs.64
 Commission ranges from 40-50paisa.
 Quality perception-thick and long shelf life.
 Flexible distribution-retailers or anyone willing to sell
 Returns will be accepted
 Payment-cash and carry or while collecting empty crates on return trip.
 Channel members are playing critical role in boosting the sales.
 Packing is attractive with multi colour pricing on sachets.
 Consumers perceive that milk is good for making curds.

15
 Arokya

 Plant located at Bangalore.

 Sale in union jurisdiction 10tlpd.
 MRP rats Rs.64 per litre
 Commission ranges from 60paisa per litre.
 Availability- mostly retail outlets like bakeries, condiments and departmental stores.
 Packing is attractive with multi colour pricing on sachets.
 Concentrating on value added products and not much on milk

Loose milk vendors

 Market share is next to Nandini.

 Loose milk from erodes and local cattle rears.
 MRP rate Rs.30 to Rs. 32 per liter
 Majority of the milk is heavily adulterated and no uniform quality.
 Sales from 50ml and above

16
 CHAPTER 3
ANALYSIS
SWOT ANALYSIS

A SWOT analysis is a strategic planning tool used to evaluate the strengths,

weaknesses, opportunities and threats involved in a project or in a business venture or in any
other situation requiring a decision.

Environmental
analysis

Internal External
Analysis Analysis

Strength Weaknes Opportunitie Threat

s s s s

SWOT Analysis

Fig 3.1: SWOT Analysis of the Organization

17
 Strengths

 Market leader.
 “Nandini” is a trusted house hold brand name.
 Two lakh farmer members.
 Provides excellent veterinary, AI, 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.
 Has earned the distinction of not failing to deliver the milk to market on time throughout
the year.
 There are days with no power supply, no water supply; but there is no day without NANDINI
milk supply.
 Highly remunerative and timely payment to producers.
 Union is in good financial position.
 ISO 9001-2000 certificate.
 Good institutional support from KMF, NDDB, etc.,
Weakness
 Lack of flexibility in deciding about its operation. No authority over issues like pricing,
offering volume discounts etc.,
 Political interference.
 Organizational structure does not permit incentive/ reward for good performance.

Opportunities
 Since the Mysore district is under Cauvery basin, perennial greens are available to the
cattle.
 Institutional markets, bakeries, hotels etc., are not fully tapped and these can be captured
preferably by direct marketing.
 Diversification of milk products like Peda, Mysore Pak.... etc.,
 Exploit the “Human Face”, by positioning in the market as an organisation with social
responsibilities of serving the milk produced 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 maximise 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 organisation in customer’s minds as a caring organisation which
service to them as its motto.

18
19
 Threats

 After liberalization, entry barriers in the dairy industry eased for new entrants.
 The competition from Co-operatives like Dodla, Heritage, Kamadenu etc.,
 Private dairies procure milk at low cost from producers and sell milk resorting to unethical
trade practices. It is a marketing war in which union has to fight by rules and other 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.
 Some private dairies are selling homogenized milk, which appears rich. The union cannot
homogenize all its huge quantity of milk due to lack of homogenizing capacity and increase
in processing cost.
 Plans of major companies like Reliance, ITC to enter into milk market in future.

7s MCKINSEY'S FRAMEWORK

Skills

Stratergy Staff

Shared
value

Structure Style

Systems

Structure
The functional structure of MYMUL is appropriate for an organization with several product
lines.it ensures maximum use of the principle of specialization. Since the workers have
performing a limited number of functions, their efficiency would be very high.

20
 Strategy
MYMUL is formulating appropriate strategies in order to meet the challenges and to develop
and strengthen dairy co-operative movements on the following thrust namely:
 processing and marketing
 Quality assurance programme
 Reasonable pricing
Pricing decisions are subject to an incredibly complete array of environmental and
competitive forces. MYMUL set not a single price, but rather a pricing structure that covers
different items in its line. MYMUL Produces different milk products to cater efficiently the
variety milk needs of the urban and semi urban consumers of the jurisdictions

System
System refers to all the rules, regulations and provisions, both formal and informal that
complement the organization structure.
Milk procurement procedure
The production department is responsible for procurement of raw milk. It consists of two
wings called purchase and store. Purchase wing is processing of raw milk and stores wing is
receiving and issuing the same to the user department. Indent is raised is raised by the user
department and registered as stores. After registration, the Indent is forwarded to purchase
wing for procurement. At this time of registration of indent if stock is available, it is issued to
the user department and the indent is cancelled.

Skill

Designation Qualification Experience (In years)

M.D B.sc(Agri),Msc(Dairying) 19
Managers
Finance B.com, M.com 20
MIS M.sc, Diploma in 15
computer science
Marketing BBM, M.com, PGDM in 10
marketing
Officers B.com, BBM, BA 8-12
Technical workers ITI 4-6
MSc. In Bio science 2-3
Laboratory
Workers Pre university, BA, 3-2
Secondary school
Other workers

21
 Style
The management of MYMUL follows the style as in other government organizations. Each
employee is accountable to his superior and each leads his subordinates.
Top-down decisions
 Fixing the targets to the employee and the workers who are working in the organisation.
 Reducing or increasing the price of the product
 Policy issues

Staff
Staff refers to the organization’s human resources. Management is concerned with the
accomplished of objectives by utilizing physical and financial resources through the efforts of
manpower.

Shared values
 Providing quality milk to consumers
 To build village level institutions in co-operative sectors to manage the dairy activities
 To ensure provision of milk production inputs, processing facilities and dissemination of
know how.

PEST ANALYSIS
 Indian Dairy Industry is at cross roads
 Industry strongly dominated by the government sector and working in co-operative mode is
going to face keen competition from private sector
 Co-ops performed well in some states, but in many states, they are functioning as parastatals,
weak representative of farmer interest
 Currently co-op prices serve as a bench mark for pricing of dairy
 Weak co-ops competing with private sector may severely affect farmer interest

POLITICAL
MYSORE diary is under the guidelines of KMF administration and financial matters. Labors
are paid according to 6th pay commission and also provided epic facilities according to state

22
government. MYMUL even gets grants from government. The land is owned by MYMUL on
rent basis from the government.

ECONOMICAL
Since milk is a daily use product the demand will be always high and also MYMUL has the
major portion of market sales are always at high. And the prices vary according to
government taxes and availability raw milk.

SOCIAL
Since most of employees are from nearest area culture differences is not there. Every
employee is provided uniform to feel the sense of unity. There are all types of age groups in
the organization and mostly elderly employees are in a higher job designation.

TECHNOLOGICAL
Milk is being test in every part of the process starting from procurement to dispatch through
automated machines such as lactometer. There are 15chilling unit, 3bays, 4pasterisation unit,
4silos and more 10 engineers to take care of the machines. The process starting from
procurement to packaging is fully automatic with only 4people controlling the whole
process.

23
 CHAPTER 4
ORGANISATION DESIGN

Fig 4.1: Organization structure

A review of choice in design

A review of choice in design is the determination and start of the general approach and
strategy adopted for a particular organizational study. The research has undertaken a
comprehensive plan of the sequence of operation for the descriptive study to achieve the
research objectives with the arrangement of condition for collection and analysis of data.

Primary data
This is the process where first hand information was collected. The research derives it after
completing certain activities. Primary data is collected directly from the dairy.

Secondary data
The Secondary Data is readily complied data from statistical statements and other sources.
The data can be obtained from either published or non-published sources.

24
Organization structure
The organization chart and accompanying baggage that show who reports to whom and how
tasks are both divided and integrated. Since mymul is a co-operative sector unit. The structure
of the organization is democratic. Major decision however is taken is at top level
management of the company.

BUSINESS LEVEL FUNCTIONS, PROCESSES AND OPERATIONS

HUMAN RESOURCES MANAGEMENT

4.1: HR Practices of MYMUL

The following are the HR practices of MYMUL
1.House rent Allowance
It is allowance provided to all permanent employees at the rate of 13% of basic pay.

2.Conveyance Allowance
Companies provide conveyance facilities to each employee from the place of residence to the
place of work. MYMUL: also provides this allowance because it is situated 10 km away
from MYSORE. Conveyance allowance of Rs. 225/month for persons owning
Scooters/Motorcycle, Rs. 500 for moped whereas Rs 1000.

3.Provident and Pension Fund

This contribution is equal to that of employee contributions i.e, 12% of salary and it is
divided between provided and pension fund as 8.33% and 3.67% respectively. The total
accumulated is balanced in the individual PF account and is paid to employee at the time of
his retirement or on his leaving the service. In the event of the death of the employee
accumulated balance is paid to his legal heirs.
4.Gratuity
The amount of gratuity payable is generally 15 days average salary. For this purpose, salary
includes only basic pay, DA and completed service.

5. Compensation for disablement

The employees are covered under the group saving Life Insurance scheme. Who contributes
to the fund are as follows:
Below SDC - Rs. 30
Above SDC - Rs. 60
Below superintendent - Rs. 90
Above superintendent - Rs. 120
Out of this 12% is kept for insurance
In the event of disablement of any nature, insurance company will compensate as per the
terms and conditions

25
 6. Leave Facilities
All permanent employees as on the date of settlement will be given leave facilities as
mentioned below.
Earned leave
Casual leave
Commuted/half day leave
Maternity leave

7.Medical Reimbursement
Contribution from employees is 1.75% (except washing allowance and conveyance
allowance), Rs 25 from management.
Total 6.5% should be remitted to ESI within stipulated time of 21 days. If an employee
becomes fully handicapped, company will provide him Rs. 170/month depending upon the
salary scale. If an employee earns less than Rs. 25 then management contribute Rs. 25 to ESI

Training and Development

At MYMUL, training and development is an ongoing process. The workers are trained to
operate machines, reduce scrap and avoid accidents whereas the supervisors, managers and
executives are provided training which will enable them to grow and acquire maturity of
thought and action. The training and development efforts at MYMUL are designed to help
the employees satisfy their personal goals – through higher level of skills and competencies;
facilitate higher contribution at their present jobs and to prepare them for the next level of the
organization. The employees who are deployed for training are considered to be on duty and
they get the TA and DA as per the rules of MYMUL. Normally the training programs
conducted at MYMUL are:

• Workshop on good quality Ghee.

• Computer Basics.
• ISO Quality System Awareness Programmer.
• Workshop on Sale Tax.
• Quality Audit Programmers.
• Marketing management.
• Materials management.
• Workshop on First aid.
• Reclaim Grades for Milk Packaging Application and Food Laws.
• Total Energy Management Programmed.
• Marketing and Brand Management
• Improving sales effectiveness.

Classification of employees

26
 Permanent employee: A permanent employee is one who is on the permanent rolls of the
union against the specific cadre and enjoying all such benefits as specified under the
regulatory rules of MYMUL or all such benefits which may be excluded from time to time.
Employees who are recruited are deemed to be permanent employees subject to declaration
of probation and confirmation by an order.
 Probationer employee: A probationer employee is one who is provisionally employed to fill
a permanent vacancy in a post for a period of probation which will not exceed 2 years on
aggregate and whose name is entered on the rolls of the probationer employees.
 Apprentice: It means a learner who is engaged to undergo apprenticeship training and who is
paid a stipend and whose terms and conditions of apprenticeship are governed by the
provisions of The Apprenticeship Act of 1961. The Union Dairy is not obliged to employ him
on completion of his apprenticeship period.

Functions

1. Recruitment of candidates
2. Selection of best suited and right person
3. Training and development of employees
4. Framing of rules
5. Creating a good working environment
6. Motivating the employees to work hard
7. Maximizing the performance of employees
8. Maintenance of records
9. Maintenance of industrial relations
10. Employee Service and Benefits

4.2. Recruitment
Procedure of appointment
• If a post is to be fulfilled by competitive examination, then after giving adequate publicity in
the leading Kannada newspaper and one of the national dailies (as the appointing authority
may determine).
• The appointment procedure will be carried in the order of merit subject to reservation in Rule
3.6 from the list of candidates prepared by the selection committee or expert panel.
• If it is by selection, after giving such adequate publicity in leading newspaper at least one in
Kannada and English to the recruitment as the appointing authority may determine in the
order of merit
• In case of the post being fulfilled by internal promotion from its own staff it is done by a
selection of a person on the basis of merit and suitability in all respect.

27
 4.3: Marketing
Departmental Hierarchy: Marketing department comprises of departmental head and further
divided into two categories and further into officers then to superintendents.
Salesmen and dispatcher. The hierarchy is as under.

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

ZONAL MANAGER

SUPERINDENTENT

MARKETING ASSISTANT
HELPER

FUNCTIONS
 A to capture the market share.
 To collect information about revenue.
 Maintain sales and other accounts.
 To attain major market shares.
 They conduct the market survey to analyze the consumers’ feedback of their product.

Marketing strategies adopted by MYMUL:

 “Procure more, produce more, sell more, and earn more”
 By procuring and producing more MYMUL achieves economies of scale which results in
least cost distribution on each unit sold.
 It raises consumer awareness for Nandini by pamphleteering, raising health issues related to
consumption of adulterated milk and soon.
 981 no of retailer ship during 2011-12 75 no till October 05 were commissioned.
 As per the demand for milk and milk products available throughout the day, 26 numbers of
Franchise Outlets, 19 no of parlors are made functional.

28
 For the retailers who were not in a position to install chest cooler insulated boxes numbering
around 900 were distributed during the said period. Milk and milk product were preserved in
the insulated boxes and sold.
 Around 40 numbers of 400 liters capacity chest coolers under the cold chain development has
been distributed.
 Promotional Activities
 Door to door campaigning: - This is done through the sales force team by questioning the
consumers, reasoning them, issuing brochures etc. This is carried on periodically.
 Organizing meeting:- Organizing meetings is important public places and inviting important
period like doctor, professional, government officers etc.
 Visit to Non -Govt. Organizations:- Visiting to NGOs and creating awareness about the
product and its benefits, inviting them to the plant and showing them the production
procedures.
 Visit of school children to the dairy and promoting their products through them by issuing
samples.
 Inviting the consumer forum and creating awareness to them.
 Participating in trade shows, exhibitions and educate people
 Through advertising in major media’s like T.V., News Papers, hoardings etc…
 It seals its product under the brand name ‘NANDINI’

4.4. Quality control department

Functions: The main function of quality control section is to control the quality and produce
best quality products. In Q.C section, the milk is tested before processing and even after
processing. Before processing the milk, it is tested for adulteration, fat content in the milk.
Milk 8% is rejected and above 8% of fat is accepted. After the milk is processed again, it is
tested for bacteria fat contents, acidity etc. Then the reports are prepared after conducting
tests. Then these reports are further submitted to KMF for further clearance and approval. If
my defects are found, then KMF notifies and recommends for further better performance.

Quality Control Techniques Adopted

1. The various tests conducted in order to maintain the quality of milk are as under:
2. Garber Test: - To know the fat content present in the milk. It is mixed with sulphuric acid.
(MILK + H2SO4)
3. Milk Test: - To know the fat content present in the milk through electronic device.
4. Lactometer: - To know the stability of the milk and is conducted by mixing the milk
with water and using lactometer, stability is tested.
5. If milk water quantity is more in the milk the lactometer will immerse inside.
6. MBRT test and ethylene blue radiate Test.
7. Acidity Test.
8. PFA Test and Prevention of food Adulteration Test

29
EACH TANKER IS WEIGHTED
AT THE WEIGH BRIDGE &
SAMPLE
THE MILK IS TESTED IN
ELECTRONIC FAT
MILK IS UNLOADED HEATING AT 78
TO RAWMILK SILOS DEGREE CELCIUS AND
(4 WITH A CAPACITY
SILOS MAINTAINED AT 45
OF 1 LAKH LITRES)

AFTER PROCESSING, THE MILK HMST WHERE CHILLING OF MILK AT 5

IS
CONVERTED INTO 4 TYPES OF E DEGREE IPASTEURIZE
PASTEURIZEMILK
MILK I.E. FCM, TM, CTM
D

NEXT THE MILK IS SENT

FOR DISPATCHING SECTION, MILK
IS
P CKIN SECTIO KEPT AT 5 DEGREE C IN THE
AG N

4.5. FINANCE DEPARTMENT

MANAGER

DEPUTY
MANAGER

ACCOUNTS
OFFICER

SUPERINDENTENT

ACCOUNT
ASSISTENT 1

ACCOUNT
ASSISTANT 2

HELPERS

30
 Functions
The main functions of financial department are as under:
1. To manage cash.
2. To manage bills.
3. To manage transportation bills.
4. To manage pay bills.
5. To manage accounts.
6. Prepare IBP
7. Cash
There are two cash counters in the financial section,
I) Collection of sales proceeds counter.
II) Cash counter
1.Collection of sales proceeds counter
This is for cash collection of sales proceeds of milk and milk products. Cash remitted by
challan system from various milk distribution routes for sale. A receipt is passed for the net
amount collected from each of the distribution root salesmen and this is being recorded in a
on-line account. This entire amount collected by the end of the day is remitted to bank the
same day to the current account of the milk union.

2.Cash counter
Another cash counter is for handling impressed cash and cheques. Impressed cash means
amount required for meeting various payment. Receipts are being issued for collection of
cash towards receipts of EMD (Security deposit repayment of advance drawn and such other
outstanding) all these things are recorded in a cashbook called petty cash book. This
cashbook is being closed at the end of day a verified by accounts office\Asst. Manages
finance. Cheques are also being drawn for payments of bills whenever payments are required
through cheques. For receipt of any cheques received from outside official, general receipts
are being passed in cash counter using tally ERP9.

3.Bills:
Bills are being received from various suppliers and usually the purchase section after getting
the Material Receipts Information (MRI) from stores duly certified for quality and quantity,
sends bills to finance section in the related files and these bills are processed and entered in
the control register and after scrutiny from pre auditors’ bills are put up for passing before
MD through Assistant Manager Finance. After the approval of MD, the cheques are drawn in
the name of the parties. File with entries of cheque No. and a copy of the voucher is returned
to purchase section / to the concerned section. And the payment vouchers are accounted in
com
Transportation Bills
Following are the types of
transportation bills:
 Procurement Transportation Bills (PTC)
 Distribution Transportation Bills (DTC)

31
 Mobile veterinary root bills
 Cattle feed transportation bills
 LN2 transportation bills (Liquid Nitrogen)
 vi Hire vehicle transportation bills

4. Pay Bills: -
Attendance data are being received from time office as per the punch card entries, further the
attendance of chilling center staff and field staff are being received from concerned section
once in a month duly certified by section needs. Based on these attendance extracts pay bill
of all the 950 employees of the milk union are being prepared through computers and salary
is being distributed through Canara Bank main Branch, Syndicate Bank of BDCC Bank by
way of crediting the account of respective employees in the Bank. These are various heads
under which salary recoveries are made such as Employees Provident Fund (EMF),
Employees State Insurance Scheme (ESI), Professional Tax, LIC, GSLIS (Group Saving
Linked Insurance Scheme), pay advance, Bank loan and such other deductions under about
45 account heads. These salary recoveries are being sent to respective departments such as
Regional PF commissioner, ESI office,
Professional Tax Office, LIC of India, different banks were employees avail loans through
cheques. The account section prepares salary.

5. Accounts
The functions of account section are:
 To maintain record of day-to-day transactions, update entries in computer.
 Prepare monthly nominal accounts.
 Prepare annual financial statements such as receipt and payments, trading, and P/L a/c and
balance sheet and also to produce the same to statutory auditors and get it audited

Sources of Finance
The main source of finance is sales realization (Retained Earnings). Sales are purely on cash /
cheques basis. As the nature of the product is highly perishable i.e., that milk and other milk
products. Hence because of this the product needs to be immediately sold to the end users, as
result money is generated immediately and routinely. Hence this forms the only source and
can be classified as short-term source finance. The other products of milk and as their perish
ability period is little more i.e., for a products of 3-4 months and sales are realized and money
gained out of it can be classified as long-term source of finance. Sometimes they even get
grants from the government.

32
 4.6. OPERATIONS
MILK PROCUREMENT
The Milk produced by 99405 farmers at village level will be collected every day morning and
Evening at DCS. Under Clean Milk Production program, to maintain the freshness & quality
of the milk 121 Bulk Milk Coolers covering 377 DCS of Total Capacity 1,92,802
liters were installed at DCS level. During the year the Unions daily average milk
procurement is 9.32 Lakhs Kgs, which works out to be 551 kgs per day per DCS. The milk
procurement has increased by 2.15 % when compared to the last year.
MYMUL is offering the most remunerative milk procurement price to member producers.
The operational efficiency is reflected on procurement prices paid to the member producers.
The average milk procurement price paid during the year was Rs. 19.06 for every Kg of Milk
supplied to the Union, which is 80% of total cost of production.

Fig4.6.1: MILK PROCUREMENT

Sal & Admin Misc Int & Bank Chrgs
Ret. Margin 7% % 0%
2%

Packing
2%

Process Milk Purchase

9% 72%

Milk

Transport
1%

collected at DCS will be transported to Chilling Centers, through 102

Milk Procurement Can Routes, by traveling 16,775 KM’s every day. 37 Bulk Milk Cooler
(BMC) Routes are also in operation, which collects milk from 121 BMC centers of 373 DCS
directly transported to Mysore Dairy through insulated tankers.

Cost consumption at mymul

 Transportation 4%
 Process 5%
 Packing 3%
 Retail margin 3%
 Sales & administration 6%
 Miscellaneous 5%
 Interest and bank charges 2%
 Milk purchase 72%

33
 CHAPTER 5
SUMMARY, LEARNINGS OUTCOME, CONCLUSION AND
SUGGESTION

SUMMARY OF FINDINGS

 MYMUL has a wide marketing network throughout the state.

 The customer awareness level towards Nandini milk is excellent because all the 100
respondents are aware of it.
 Proper training programs for farmers are an additional service provided by the company
which is improving Nandini’s popularity among the farmers and ensures quality and
consistency of supply of milk from them.
 Majority of respondents belongs to the age group of 22-50 years.
 Majority of respondents are of female category.
 Majority of the respondents have chosen TV as the best media to increase the sales.
 Majority of the respondents buy the products because of their own decisions.
 Majority of respondents have suggested creativity in advertisement makes it most
memorable.
 Majority of respondents say Nandini’s advertisement convey enough required information
about its products.
 Majority of the respondents say picturization strategies impress the customers more.
 Majority of the respondents buy Nandini products because of their availability.

34
LEARNINGS OUTCOME
Organization study provide the best experience as it delivers the opportunity to take partial
experience from the company. It gave the idea of the managerial roles as a professional.
There is a lot of difference in the theory that we study and, the organization, the partial work
of the board of work is different for each work. The organization study has given a better
understanding of skills set and career development and a comparative nature. There is
experienced skilled and specialist in production, Marketing, HR, Finance department and
they are well connected with each other.

It converted aspects like background, Nature of Business, Vision, Mission, Quality Policy,
Product or Service Profile, Organization Structure, Achievement and Awards, if any future
growth McKinsey’s Framework with reference to KMF. It has been a pride and privilege to
undertaken an Organization Study it is wonderful and indeed great learning digitally.

The study carried in KMF company Mysore was successful in achieving the specific
objectives. It helped to familiarize with organization structure and its functioning. It also
helped to familiarize with different departments in the organization, their function and
activities. This study helped me to improve my practical knowledge about how the various
activities are performed in all departments. This study helped in improving practical
knowledge. This study was beneficial as it helped me to gain confidence and awareness. It
gave me an insight to working culture in an organization. This experience will go a long way
in building better future and career for me.

During the Internship I learnt how the department functions in the organization. I gained
knowledge about overall organization.

Overall, I learnt overview of function of different departments in the organization

CONCLUSION

Though the study is not exhaustive, the data obtained is enough to understand the attitude of
the customers towards Nandini products.
The result of the survey proves that, Indians in spite of being price-conscious, nowadays they
are more health-concerned and quality oriented. To be dominant players in the market, sales
promotion is very crucial weapon. To maintain and retain the tough customers and also, to
build a good rapport with the channel partners.
According to market research the consumer had given positive response regarding all aspects
of Nandini products. It shows Nandini is attracting consumers and prospecting in business.
But in a competitive field, one should not satisfy with one’s present performance. In order to
maintain higher competitive efficiency, regular market research will help an organisation to

35
 ascertain the consumer preference and according to them for creating and maintaining brand
image in the minds of people.

SUGGESTIONS

 The company should make more use of the different medias available like television, radio
and other medias which can attract lot of customers.
 It can be suggested that advertisements should be made more attractive and innovative to
draw the attentions of the customers.
 It can be suggested that different offers must be made available and that will attract
customers.
 Most of the customers buy Nandini products due to its ease availability, so maintain products
available to customers through effective distribution channels.
 It can be suggested that the company should have their upper held priorities towards revising
their pricing strategies to popularize the products for the mass greater reach outs in the future
period of time.
 Company can reduce the price of the product by adopting few cost reduction techniques, so it
will help attract different classes of people.
 Bonus and incentives can be given to the dealers in order to motivate them.

36
 REFERENCES

WEBSITES:

➢ www.kmfnandini.com
➢ www.mymul.com

37