Raichur Bellary and Koppal Milk Union Ltd.

GENERAL INTRODUCTION:

The Indian dairy industry has made rapid progress since independence a large
number of modern milk and milk products factories have been established . These
organized dairies have been successfully engaged in the routine commercial
production of pasteurized milk and milk products.

India is the world’s largest milk producer that is certified by the international
dairy industry.This is the reason for the recognition of India as dairy giant by united
nations Food & Agriculture Organisation(FAO).

Milk is an important and essential commodity to human life. The significance of

milk is human life can be traced from Vedic period. Cow is considered as the “Living
God”and Milk as“Amrutha” in Vedic version. Milk is having immeasurable value in
use,which has been explained in many Slokas Vedas,Upanishads and Purans.

According to “CHARAKA”, who is considered as the father of Ayurveda system of medicine

holds the important of milk as “Milk has ten properties viz., sweetness,coldness,
softness, unctuousness, density, smoothness, heaviness, slowness, and charity.”

Dr.Benjamin spoke in his famous work “The common sense book of baby and
Child care”,states milk contains almost all the food elements that a human being
needs protein,fat, sugar,minerals, and most of vitamins, milk ia the only food contains a lot
of calcium.

In the period of human civilization buying and selling of milk was considered as
sin. The inner measuring if this tradition was it is the duty of each person to posses
milk cattle so as to usemilk for him self and distribute to other in the society ,milk and
cattle was considered the wealthof the person.

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Raichur Bellary and Koppal Milk Union Ltd.

The growth of civilization modernized way of living, development of science

and technology .The scientific outlook of commercialization of human values
changed the social structure and there by commercial outlook towards the production
and marketing of milk has emerged.

Increased population and its growth rate in relation existing milk.Animals ,caused
An imbalance between the demand and supply of milk production and marketing of
milk has been considered a profitable business further the excess depending in
agriculture concentration of population in rural areas the nature of unemployment and
underemployment diverted the attention of the rural folk to consider milk production
as a subsidiary occupation.

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Raichur Bellary and Koppal Milk Union Ltd.

OBJECTIVES OF THE STUDY:

1. To understand the functions carried out in various departments and the

detailed study about all the departments.
2. To have practical exposure on various departments with the help of academic
knowledge.
3. To understand the real life working situations.

SCOPE OF STUDY:

The study is purely based on the survey conducted in Bellary District that will be

In Bellary city and been focused on shareholders.

The study covers information about the various competitive brands in popular

Segment the attitudes for this milk and comparison with other competitions products.

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Raichur Bellary and Koppal Milk Union Ltd.

METHODOLOGY

To study the above objectives the research scholar has adopted interview
method to deal with the various problems relating to procurement, processing and
distribution of milk of KMF Dairy of Bellary division.

Source of Data

Primary Data:-
I collected information by observation and interacting with the organization
employees and various departmental managers

Secondary Data:
The secondary data was collected with the help of fact sheets, organization
manuals, websites etc.

LIMITATIONS OF STUDY
 The study included collection of data through interaction with officials and the

findings were based on the premise that the respondents have given correct

information.

 The study of the nature requires more time for better results.

 It is a co-operative organization and some time we could not get the

informaton regarding financial aspects, with confidential as confidential

in nature.

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Raichur Bellary and Koppal Milk Union Ltd.

INDUSTRIAL BACKGROUND OF THE STUDY:

ORIGIN OF THE INDUSTRY:

Dairying is the production and marketing of milk, usually cow‘s milk product. It
includes the case of cow of cow’s breeding,feeding,management product .The milk
must be collected ,processed into dairy products and markets. All these operations
have been improved by physiological,genetic,nutritional,chemical,microbiological,
technological, economical and marketing research and development.

Cattle, goat and sheep have kept by man for the production of milk since
immemorial. Milk, butter and cheese were common food of the people in those days.
Hindu Vedas written before 1200BC mentioned the use of butter as food. The
Mongols in the middle ages prepared concentrated milk in the past and probably dairy
form and used them as a time of civil war byAmericans. Grim ode’s British patent for
producing dried milk was issued 1855.But large production of dried milk did not
being until 50 years.

GROWTH AND DEVELOPMENT OF THE INDUSTRY:

Early man found that the goat and sheep produced enough milk for his family.
As the need of milk increased, the cow becomes established as a producer of milk in
large scale. By 18th century,the practice of selective breeding was established. It has
been said that cow is machine that converts raw materials (plant) into food in a
surprisingly deficient manner. The method by which cattle are managed in order to
produce milk can be accomplished in many ways.

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Raichur Bellary and Koppal Milk Union Ltd.

Milk may be defined as the whole fresh,clean ,lacteal secretion obtained by the
complete milking of one or more healthy milk animals ( cow, buffalos ).Milk is the
only food ,which is designed by nature solely as a food. It serves as the foundation
diet.As milk contains protein , vitamin and fats , it is very important for pregnant
mother,growing children, adolescent,adult, convalescents and patients alike. In the 20
venture the diary
The diary industry is witnessing rapid changes.In search of better return
the industry is widening its focus to include traditional milk product, and these
are emerging as new profit centers for the organized sector.

PRESENT STATUS OF THE INDUSTRY:

Over the two decade’s ,institutes such as the National Dairy Research Institute and
NDDB have made possible assembly line production of ethnic dairy products such as
Shrikhand,Gulab Jamoon, Paneer,Kulfi,Mishtidoi,Dahi and Lassi. While established
names in the industry such as Amul, Nestle,Britannia and Mother Dairy have made
deep inroads into this booming market ,small companies are following by example in
regional markets.

Some examples are Aarey in Maharashtra,Aavin in Tamil Nadu,Nandini in

Karnataka,Vijaya and Visaka in Andhra Pradesh ,Milma in Kerala,KC Das in
Kolkata and Bangalore,Sugam in Vadodara ,Mahanand in Maharashtra,Verka in
Punjab,Parag in UP, Sneha in MP and Parsi Dairy Farm in Mumbai.

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Raichur Bellary and Koppal Milk Union Ltd.

STRENGTHENING THE CO-OPERATIVES:

NDDB’s Institution Building Programmed to strengthen dairy cooperatives in aspects

Like Governance, management and economic viability, is being implemented in
cooperative Milk unions across the country.NDDB also organized eight training
programmers during the year for milk union personnel to enable them to facilitate
these village level Institution Building Programmers. So far, about 150 union
personnel have been trained. During the year 2004-05105 board members attended the
programmers organized by NDDB to sensitive and involve the Board of directors of
milk unions in institution building.

Besides increasing the enrolment of women members in DCS and spreading

awareness among rural women about health, nutrition and literacy, the activities
under Enhancement of Women Involvement in Co-operatives(EWIC) have
encouraged women to organize thrift groups and takeup income generation activities.
So far about 6149 thrift groups have been organized with Membership of more than
one lakh women and collection amounting to Rs.9.88crore. About 75percent of this
amount is being utilized to service the credit needs of members.

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Raichur Bellary and Koppal Milk Union Ltd.

CAREER OPPORTUNITIES IN DAIRYING:

The spectacular growth of the dairy industry in the last two decades has
created the demand for indigenous productions of various dairy equipment. A variety
of products which are convenient as well as of the highest quality standards are in
demand. This has resulted in the progressive development of dairy equipment
manufacturing industry and technical consultancy organizations.
Such notable expansion of the dairy processing industry is related
professions have opened up vast career opportunities for dairy personnel. There are
some 400 dairy plants in the country making various milk products. They are looking
for good, qualified and well trained personnel to run the plants efficiency and
profitably.

DAIRY TECHNOLOGY/ENGINEERING:

Dairy technology comprises all methods of handling milk from

production to consumption. It includes processing, packaging, storage, transport and
physical distribution. It employs the principle of engineering and is based on the
sciences of biochemistry, bacteriology an nutrition. The objectives being: To prevent
spoilage, improve quality, increase shelf life, and make milk palatable and safe for
human consumption.

A dairy technologist is involved in all the operations carried out till the
product reaches the consumer. In addition to technical competence, he should have
supervisory skill and business acumen. He is responsible for:
- Efficient and economized operation of the plant.
- Maintaining all production records.
- Controlling the quality of the product and ensuring efficient packaging and storage.
- Organizing distribution of products.
- Finding ways to utilize by products.

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Raichur Bellary and Koppal Milk Union Ltd.

EQUIPMENT DESIGN, PLANT DESIGN AND FABRICATION

AND PROJECT EXECUTION:

The growth of the dairy processing industry has encouraged the

indignation of dairy equipment. Most requirements of the dairy industry are now met
indigenously presently, there are over 170 dairy equipment manufactures, many of
them taking up turkey jobs.

THE INDUSTRY HAS TWO DISTINCT JOBS:

- Equipment design and fabrication and plant design.

- Project execution.
Equipment and plant design requires the designer to be well versed with the
knowledge of dairy processes and their various specific requirements. Project
execution needs skills in costing, scheduling, procurement and liaison with various
agencies, in addition to technical competence. These jobs can be well performed by a
dairy technologist with engineering aptitude. In fact, many have chosen. This as their
career.

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Raichur Bellary and Koppal Milk Union Ltd.

INDIAN DAIRY: EXPANDING DAILY:

India’s modern dairy sector has expanded rapidly. From an insignificant 2,00,000
liters per day (LPD) of milk being procened in 1951, the organized sector is presently
handling some 20 millions lpd in over 400 dairy plants. Already one of the coored
largest liquid milk plants is located in Delhi, handling over 8,00,000 liters of milk per
day (Mother Dairy, Delhi). India’s first automated dairy (capacities: 1 million liters
per day, matha dairy, gandhinagar, has been established at gandhinagar near
Ahmedabad, Gujarat, in western India. It is owned by India’s biggest dairy
cooperative group, Gujarat cooperative milk marketing federation (GCMMF) in
Arnel, laitn an annual turnover in excess of Rs.23 billion (US$ 500 million).

THE INDIAN DAIRY ADVANTAGE:

Some of the more important factors that gives investors in India the
winning edge area-

* SIZE: India is possibly the largest contributor of milk and milk products to the
world.

 COMMUNICATION: Made easier due to widespread use of English among

the
educated farmer.
 GOVERNMENT: India is the world’s largest indeendent judiciary, well
established and free from government interference.

 GEOGRAPHY: Geographical location in the centre of the eastern

Hemisphere.

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Raichur Bellary and Koppal Milk Union Ltd.

Supporting To Training And Employment Programme

(STEP):

Karnataka milk federation is implementing a special program for overall

development of woman is rural areas. This program is named as “Support to training
and employment program for women (STEP)” launched during 1997 with the
financial assistance of ministry of human resource development, department of
woman and child development government of India.

MILK: INDIA’S NUMBER ONE FARM COMMODITY:

Milk is India’s number one farm commodity is terms of its contribution

to the national economy. In 1994-95, the value of its output based on producer price
was Rs.5,00,051 millions exceeding that from paddy (rice). Not withstanding its top
place and the many benefits it bestows on the lower rungs of the rural society,
dairying has not received due attention. From planners, economists, social scientists
and others. For example, the investment in dairying made order the five-year plant is
not commensurate with its output. Consequently, its potential has not been adequately
tapped.

WOMEN IN DAIRYING:

Winner of the prestigious, magbaysay, Award, Mrs.Ela Bhatt,

highlights the need for giving women their due place in dairy development. For their
empowerment and economic well being women’s access to training in modern
dairying and co-operative management is essential.
The employment of women is an inder of their economic and social status
in society. In India, women constitute 90% of marginal workers, with some regional
variations. The operation flood of program recognizes that:

* Dairying at the house hold level in largely the domain of women.

* The products and income from dairying can be controlled by women.
* Dairying can be practiced on a small scale.

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Raichur Bellary and Koppal Milk Union Ltd.

INDIA: WORLD’S LARGEST MILK PRODUCER:

India has become the world’ No.1 milk producing country, with in 1999-2000
(Marketing year ending March 2000) forecasted at 78 million tones. Limited states,
where the milk production is anticipated to grow only marginally at 71 million tones,
occupied the top slot till 1997. In the year 1997, India’s milk production was on par
with the U.S at 71 million tones. The world milk production in 1998 at 557 million
tones would continue the steady program in recent year (see table 7). Furthermore, the
annual rate of growth in milk production in India is between 5-6 percent, against the
worlds at 7% the step rise in the growth pattern has been attributed to a sustained
expansion in domestic demand, although per capita consumption is modest at 70 kg of
milk equivalent.

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Raichur Bellary and Koppal Milk Union Ltd.

OVER VIEW OF THE ORGANIZATION:

1. Name of company Raichur,Bellary and Koppal milk union ltd

2.Address Bellary dairy,

Sanjay Gandhi Nagar, Near Fire Station,

Bellary-583104.

3.Year of Establishment 01/04/1985

4.Management control selected by Board of Directors

5.Product Range 1) milk in two variants

a) Nandini
b) Shubam

2)Ghee

3)Peda

4) Jamoon

5)Other milk related products

6.Trade marks Cow in oval

7.Water facility from municipality and owl wells and bore wells
8.Power facility from K.P.T.C.L power grid
9.Initial investment 7 cores under NDDB

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Raichur Bellary and Koppal Milk Union Ltd.

The union of Raichur, Bellary and Koppal districts has its own geographical and
Historical background being a high temperature place in the state the union raising its
dairy development program.

Raichur ,Bellary & Koppal milk union LTD.,(RBKMUL) one of the member of
KMF and the market leader in providing pure milk products to consumers.

It surrounds great historical place like Hampi, Anegundi, Hospet, Tungabhadra

River, Hatti gold mines, many manganese and iron ore mines with lots of village areas
that makes union easy to collect the milk and create new co-operative society.

Dairy has played a prominent role in strengthening the rural economy; it has played
prominent role in strengthening to bring out socio-economic transformation by
helping the landless and marginal farmers.

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Raichur Bellary and Koppal Milk Union Ltd.

COMPANY PROFILE OF THE RAICHUR BELLARY

AND KOPPAL MILK UNION

ORIGIN OF THE ORGANIZATION:

Raichur, Bellary and Koppal Districts Co-operative milk producers societies union
Ltd was established in the 1989 under the operation flood covering three districts viz
Raichur,Bellary & Koppal. It has a dairy plant at Bellary with a capacity of
40,000liters per day plant at Raichur.

It has four chilling centers at Gangavathi, Dadesugur lttigi&Kustagi BMC with total
Chilling capacity of 1.10lakhs liter per day. There are two Bulk milk coolers in the
union. The union of Raichur, Bellary and Koppal districts has its own geographical
and historical back ground being a high temperature place in the state the union
raising its dairy development program.

According to conduction of “operation flood” in Karnataka, Karnataka

cooperation Milk board started working for the dairy development from 1-4-1989,few
Raichur and Bellary Milk producers co-operative society was registered in 12-12-
1989, few year back a newly formed Koppal district was included. At present the
union is known as Raichur, Bellary and Koppal district co-operative milk union ltd.

At present the milk union procures on an average of 55,000 liters per day of milk
and sells around 1.10 Lakhs liters per day. Apart from selling milk it also produces
Ghee Curd, Lassi, Butter milk and Peda. The union is also procuring buffalo milk
separately and premium milk under the brand name “SHUBHAM”

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Raichur Bellary and Koppal Milk Union Ltd.

Karnataka Cooperative Milk Producers Federation Limited (KMF ) is the Apex

body in Karnataka representing Dairy Farmers Co-operatives .It is the second largest
Dairy co- operative amongst the dairy cooperative in the country. In south Indian it
stands first in terms of procurement as well as sales. One of the core function of the
federation is marketing of milk and milk products. The Brand ‘NANDINI’ is the
household name for pure and fresh milk products. KMF has 13 milk union throughout
the state which procures milk from Primary Dairy cooperative Societies (DCS) and
distribute milk to the consumers in various town and cities and Rural markets in
Karnataka.
KMF has 13 Milk Unions throughout the State which procure milk from Primary
Dairy Co-operative Societies (DCS) and distribute milk to the consumers in various
Towns/Cities/Rural markets in Karnataka.

 Bengaluru Milk Union

 Belgaum Milk Union

 Bellary Milk Union

 Bijapur Milk Union

 D.K. Milk Union

 Dharwad Milk Union

 Gulbarga Milk Union

 Hassan Milk Union

 Kolar Milk Union

 Mandya Milk Union

 Mysore Milk Union

 Shimoga Milk Union and

 Tumkur Milk Union

Apex Body to co-operative the growth of the sector at the State Level.

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Raichur Bellary and Koppal Milk Union Ltd.

INFRASTRUCTURE DEVELOPMENT:

BULK MILK COOLERS (BMC):

At DCS level to chill the milk, BMC’s are to be installed.BMC is a stainless steel tank
attached to the chilling unit supported by Generator. The Raw milk received at DCS
level is chilled to 4 c in BMC.

AUTOMATIC MILK COLLECTION UNIT (AMCU):

System with printer.Milk can be weighed, tested for quality, quantity, and accurate
value without touching by hand.The producer can be provided the details in printed
from immediately with the help of computer system. This activity will avoid the
manual measurement and handling of each liter of milk at the time of collection at
DCS. Thus the bacterial contamination is decreased and best quality of milk is
sustained for long time.

Electronic Weighing scale (EWS):

Electronic weighing scale is measuring/weighing instruments in which the milk

will be measured/weighed in liters as in kgs. Milk producer directly pour the milk

in it. A digital will show the number of liters poured by the producer.

SUPPLY OF STAINLESS STEEL EQUIPMENTS TO DCS:

Milk union purpose to supply Stainless Steel Milk cans and Equipments to the DCS
under CMP.Supply of Stainless Steel 304 containers to Milk Producers Milk Union
also proposes to supply stainless vessels to all the (BPL families and others) milk
producers.

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Raichur Bellary and Koppal Milk Union Ltd.

Animal Health Coverage:

Under animal health programme more emphasis will be given for mastitis
control. SAAF kit will be given to all the (BPL families & others) milk producers.

Construction of cattle feed Godowns:

All the producer member need balanced cattle feed for their milk animals to
increase and sustain optimum milk production for economical dairying. Balanced
cattle feed has to be made available to all the members whenever it is required even in
small quantities. Each DCS villages cannot afford to have Godown facilities, as it
require huge investment. Hence Milk union proposes to construct cattle feed godowns
at each CC/BMC premises so that sufficient quantity of cattle feed can be stored and
be able to cater the immediate requirements easily.

Training Programme:
All the Beneficiaries are to be trained in Dairy animal Management and Clean
milk production

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Raichur Bellary and Koppal Milk Union Ltd.

GROWTH AND DEVELOPMENT:

The World Bank funded Dairy Development Program in the country started in
Karnataka with the organization of Village Level Dairy Co-operatives in 1974.

The AMUL pattern of dairy co-operatives started functioning in Karnataka from

1974-75 with the financial assistance from World Bank, Operation Flood II & III. The
dairy cooperatives were established under the ANAND pattern in a three tier structure
with the Village Level Dairy Co-operatives forming the base level, the District Level
Milk Unions at the middle level to take care of the procurement, processing and of
milk and the Karnataka Milk Federationas the Apex Body to co-operatives the
growth of the sector at the state level. Coordination of activities among the unions
and developing market for milk and Milk products is the responsibility of KMF.
marketing Milk in the respective jurisdiction is organized by the respective Milk
Unions. Surplus/deficit or liquid milk among the member Milk Unionsis monitored by
the Federation. While the marketing or all the milk products is organized by KMF,
both within and outside the State, all the Milk and Milk products are sold under
acommon brand name NANDINI.

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Raichur Bellary and Koppal Milk Union Ltd.

MILK PROCUREMENT

While Dairy Co-operative procured milk all the 365 days and two times day
annual average milk procurement per day is shown in table below :
Year wise milk procurement

Year Average Milk procurement / Day

2004-05 42,263 Kgs
2005-06 5,847 Kgs
2006-07 52,425 Kgs
2007-08 57,996 Kgs
2008-09 59,598 Kgs

Average growth rate of milk procurement for 2 years as under

Year Average Milk procurement Growth rate

in %
2004-05 20 %
2005-06 30 %
2006-07 3%
2007-08 10 %
2008-09 2.8%

MILK SALES:

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Raichur Bellary and Koppal Milk Union Ltd.
There are mainly 15 distribution routes are being served by RBKMUL and 28
milk procurement routes. There are around 400 agents who sell mil covering all 3
districts. The yearly sale of milk is shown below :

Year Average sale of milk in liters/ Day

2004-05 40,538 Lts
2005-06 42,542 lts
2006-07 55,000 lts
2007-08 71,105 lts
2008-09 91,598 lts

In order to meet the needs of the consumers, milk products such as curd,
butter, ghee, skimmed milk powder, paneer, burfi, and milk Peda are sold. Last year
several new products such as nandini Jamoon mix and Mysore pak and nandini good
life long shelf life milk, pure cow’s milk which could stay fresh without refrigeration
for over 45 days have been released in retail packs.

ANNUAL TURN OVER RATE OF RBKMUL, BELLARY

Year Amount in crores

2005-06 28 cores
2006-07 33 cores
2007-08 48 cores

FUTURE PLANS OF THE ORGANIZATION

PERSPECTIVE PLAN 2010

After the closure of III project Government of Karnataka and NDDB signed an
MOU during February 2000,for further strengthening the Dairy Development

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Raichur Bellary and Koppal Milk Union Ltd.
Activities in Karnataka with an outlay of Rs.250Crores .Consequently to the
announcement of new lending terms and conditions by NDDB through an evolution
of an action plan –Perspective 2010 to enable the dairy co-operatives to face the
challenges of the increased demand for milk and milk products by focusing efforts in
the four major thrust areas of strengthening the cooperatives . Enhancing Productivity,
Managing Quality and building a National Information Network, plans are under
implementation. The four milk unions viz., Dharwad ,Tumkur,Bijapur and Gulbarga
that were having accumulated losses were includes for rehabilitation programme
under the centrally sponsored scheme “Assistance to Co-operatives” which is also
under implementation

FUTURE VISION:
To consolidate the gains of Dairying achieved in the state of Karnataka and with a
view of to efficiently chill, process and market ever developing and increasing milk
procurement with an utmost emphasis on the quality and in the process conserve the
socio-economic interests of rural milk producers, the Government of Karnataka
through KMF has proposed to undertakeseveral projects with financial and technical
support of NDDB for which an MOU was signed between Govt. of Karnataka and
NDDB on 10th November 2000.

OBJECTIVES AND GOALS

 To increase the present sales of milk from1,10,000 liters to1,25,000 liters

 To increase the milk dealers from 511 to 600

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Raichur Bellary and Koppal Milk Union Ltd.

 To increase the sale of milk by conducting door to door survey

 Information programs, consumers education programs

 Consumers awareness programs, consumers dairy visit

 Program, hotel owner meeting, school children program etc

 To use different media for the purpose of marketing their Product

 Regarding supply of toned, double toned and shubam to all the cities
according to consumer needs.

 To conduct awareness program for farmers, to enhance the production of

milk.

 To increase the working members from 10,900 to 18,620

 To increase the member of the union to 49,000

 To increase the collection of milk from the existing each 131 liters to 160
liters per DCS

VISSION AND MISSION

VISION OF RBKMUL:
RBKMUL PROVIDES Technical support to its Co-operatives and procuring
good quality milk form DCS provide better price for milk producers (farmers) and

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Raichur Bellary and Koppal Milk Union Ltd.
provide good quality of milk & milk products to satisfy its customers in order to
maintain & improve the economical status of the organization.

MISSION OF RBKMUL
“The goodness for generations”. RBKMUL wanted to grow its business for
generations providing good quality of milk to consumers and better services. Achieve
economies of scale and to ensure maximum returns to the milk producers, at the same
time providing wholesome milk at a reasonable price to urban consumers. Ultimately,
the complex network of co-operative organization should build a strong bridge
between masses of rural producers and millions or urban consumers and achieve a
socio-economic revolution in the vicinity of the territory.

VALUES OF RBKMUL
Discipline
Responsibility
Hard work
Honesty
Quality
Team work and
Openness

QUALITY POLICY OF THE COMPANY:

Bellary milk union (RBKMUL) will procure pure milk from its member’s
societies and scientifically processes. In its endeavor to supply fresh, pure and safe
milk and its derivatives to the customer satisfaction and at competitive price.
RBKMUL will strive to continually improve its performance through all
stake holder participation.

COMPETITORS INFORMATION:
The major competitors of the RBKMUL are as follows:
* Arogya.
* Gayatri.
* Krishna
* Heritage
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* Local milk vendor
Raichur Bellary and Koppal Milk Union Ltd.

HERITAGE:

- Plant at Chittor and Bangalore.

- Availability of raw materials at cheaper rates.
- M.R.P rate Rs13.00 per liters - seller rate Rs12.50 (based on quantity).
- Commission ranges from 40-70 per liter (good incentive schemes).

LOCAL MILK SALE:

- Market share is next to Nandini.

- Majority of the milk is heavily adulterated and no uniform quality.
- Sales from 50ml and above.
- Major consumers are low-income group segments, road side tea shops and
sweet stalls.
- Flexible payment system.
- Consumers perceives that milk supplied by local cattle rears is fresh.

GAYATRI:

- Availability of raw materials at cheaper rates.

- M.R.P. rates Rs13.00 per liter – seller rate Rs10.50.

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Raichur Bellary and Koppal Milk Union Ltd.
- Commission ranges from paisa 40-50.

The main competitor of KMF is Arogya & Local venders. Most of the market are
monopolistically competitive & there use no strong barriers to entry. Entry of new
firms means a cut in the existing market share possessed by old firms.
Competition from new rivals, then leads to a fall in price diminution of profits again
no one can predict when exactly a new firm will enter the market & what will be its
competitive strength competitors can invade the market as soon as they discover its
profitability, it finds ways to shift the patents and make the necessary development
outlays in production, design, production plant, technique and market penetration. For
this reason, a firm may not want to show profit earnings in the business but depict a
gloomy picture so that new comers are discouraged from entering the market.

KMF can maintain standards by :-

1. Maintaining business good will
2. High wage consideration
3. Avoiding high taxation and government interventions
4. Avoiding risk
5. Obstructing potential competition

PRODUCT PROFILE OF BELLARY DAIRY:

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Raichur Bellary and Koppal Milk Union Ltd.
Bellary is presently producing various types of pasteurized milk and milk
products, which is collected from the farmers. The product management by the union
is as follows:
1. Nandini toned milk.
2. Shubham.
3. Ghee.
4. Peda.
5. Curds.
6. Masala butter milk.
7. Nandini Bite

1. TONED MILK:
Karnataka’s most favorite milk is Nandini toned milk. Toned milk
containing of 3% of fat and 8.5% of solid not fat(SNF). It is available in 1000ml,
500ml and 250ml sachets.

2. SHUBHAM MILK:

This milk contains 5% fat and 9% SNF. A rich, creamer and tastier milk,
ideal for preparing home made sweets and savorites. It is available in 1000ml ,500ml
and 200 ml sachets.

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3. GHEE:

A taste of purity Nandini Ghee, made from pure butter, it is fresh and pure
with a delicious flavor. Hygienically manufactured and packed with a special pack to
retain the goodness of pure ghee.

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Raichur Bellary and Koppal Milk Union Ltd.
* Shelf life of 6 months at ambient temperatures.
* Available in 200ml, 500ml, 1000ml and 15 kgs tins.

4. PEDA:

‘No matter what you are celebrating’. Nandini peda is a delicious treat for
the family.
* Store at a room temperature approximately 7 days.
* Available in 250gms pack containing 10 pieces each.

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Raichur Bellary and Koppal Milk Union Ltd.

5. CURDS:

Nandini curd made from pure milk. It’s thick and delicious. Giving you all
the goodness of homemade curds.
Available in 200ml and 500ml sachets.

6. MASALA BUTTER MILK:

It is made from pure curd. It consists some masala items for taste. It is
available in 200ml sachets.

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Raichur Bellary and Koppal Milk Union Ltd.

7. NANDINI BITE:

RBKMUL MARKETING THE KMF NANDINI PRODUCTS:

1. GOOD LIFE MILK:

Cow’s pure milk, UHT processed, bacteria free in a tamper-proof tetra-

fino pack which keeps this milk fresh for 60 days without refrigeration until opened.
Available in 500ml fino and in 200ml, bricks at premium stores across the state.

2. BADAM POWDER:

A delicious beverage with hot or cold milk. It can be used for kheer,
kesaribath, desserts or ice cream. It’s the goodness of badam mixed with Almond,

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Raichur Bellary and Koppal Milk Union Ltd.
edible starch, saffron, skimmed milk powder and cane sugar to give you the ideal
badam delight.
Available in 100gms, 200gms, 500gms.

3. MYSORE PAK:

Fresh and tasty, nandini mysore pak is made from quality Bengal
gram, nandini ghee and sugar. It’s a delicious way to relish a sweet moment.
Available in 250gms. 500gms. Pp container shrink packed to preserve
freshness. Can be kept for 20 days.

4. GULAB JAMOON MIX:

Great way to those soft and juicy jamoon treats at home! Nandini
gulab jamoon mix is made from nandini skimmed milk powder, Maida, soji and
nandini special grade ghee.
Available in 100gms and 200gms standy pouch with a five layer foil
lamination. Shelf life of 6 months.

5. FLAVOURED MILK:

Sterilized flavored milk, a nutritious and healthy drink and an all

season wholesome drink available in five different flavors – pineapple, rose, badam,
pista and natural orange. Apart from refreshing energy.
Available in 200ml bottles.
6. PANEER:

Pure and tasty dishes with Nandini paneer! A fresh, nutritive

product made by coagulating pure milk, it is an excellent source of milk protein.

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Raichur Bellary and Koppal Milk Union Ltd.
Nandini paneer is ideal for vegetarian dishes such as mutter paneer, sag paneer and
various other dishes.
Refrigerated storage is preferable. Available in 200gms pack, specially
packed in a five layer film and vacuum packed to preserve its quality. Bulk packings
are also available.

7. BUTTER MILK:

Nandini spiced butter milk is a refreshing health drink. It is made from

quality curds and is blended with fresh green chillies, green coriander leaves,
asafetida and fresh ginger. Nandini spiced butter promotes health and easy digestion.
It is available in 200ml packs and is priced at most competitive rates, so
that it is affordable to all sections of people.

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Raichur Bellary and Koppal Milk Union Ltd.
ORGANIZATIONAL STRUCTURE:

RBKMUL

Board of Director and President

Managing Director

Process Procure Adminis Finance Market MIS Purchase

-ing -ments -tration -ing

Manager Manager Purchase

Dairy P and I superinte
ndent

Deputy Deputy
Manager Manager Administ
Product Veterinar ration Accounts Deputy MIS
-ion and -y Feed officer officer Manager officer
Product and
Fodder

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Raichur Bellary and Koppal Milk Union Ltd.
BOARD OF DIRECTORS

Chairman : Sri A. Thimma Reddy

Director : Sri G. Somashekar Reddy
Director : Sri. Satyanarayana
Director : Sri. B. Suryanarayan Murthy
Director : Sri K.Thimma Reddy
Director : Sri M. Satyanarayana
Director : Sri. K. Naganagoud
Director : Sri. H. Hanumanthappa
Director : Smt. B. Satyavathi
Director : Smt. Sudha Pranesh
Director : Smt. M. Tulasi
Director : Sri. Rathammakaleshappa
JRCS : Smt. Sunandamma
Managing Director RBKMUL : Sri. Dr.Prasanna
Deputy Director : Sri.Dr.J.Pampapathi
NDDB Representative : Sri.A.A.Khader
KMF Representative : Sri. V.U.Rehman
Managing Director : Sri.Dr.Prasanna

VARIOUS DEPARTMENTS AND THEIR FUNTIONS

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Raichur Bellary and Koppal Milk Union Ltd.

In RBKMUL there are different departments are as follows:

1. PROCUREMENT AND INPUT DEPARTMENT

2. PRODUCTION DEPARTMENT
3. ADMINISTRATION DEPARTMENT
4. FINANCE DEPARTMENT
5. PURCHASE DEPARTMENT
6. MARKETING DEPARTMENT
7. M.I.S.(MANAGEMENT INFORMATION SYSTEM)

DEPARTMENTAL HEADS:
Procurement and Input Dr. B.B.Wadappi
department (manager)
Dairy & Chilling center Sri. G.B.Uday Kumar
Marketing Department Dr.K.S.Basavaraj
Finance department Vincent. R.. Noel
(Accounts officer)
Administration Department Sri. T.J.Radha Krishna
(administration officer)
Purchase Department Sri. C.Gajendra
MIS department Ramesh.S. Hegde

1. PROCUREMENT AND INPUT DEPARTMENT

FUNCTION:-

Main motive is to organize milk produces Co-operative societies in the

villages.

INPUT & SERVICES:

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Raichur Bellary and Koppal Milk Union Ltd.

 Fodder
 Extension programs
 Veterinary Services
 Extension

BENEFITS

Round the year, market to milk produced

SERVICES

 RBKMU bears all charges of any diseases to the cattle includes

medicine & Transportation charge

 The fee for doctor is 75/per- animal visit

 Once in three months conduct health camps in

societies at subsidized rate.

VACINATION WORK

They vaccines are sold to farmers at subsidiary rate

Example:-foot and mouth diseases

Theileria Vaccine

EXTENSION:

 Milk producers meeting

 Education programs

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Raichur Bellary and Koppal Milk Union Ltd.
 Cattle feed (balanced Nandini cattle feed) to society.

 They encourage growth of green fodder

1. Supplying seeds at subsidiary rates

2. Supplying root stems of perinial green fodder
(Grows once in a months up to 4 years)

Training programes:

 managing committee member training

 training to the societies secretary and staff

 dairy animal management training to the milk producers

STAFF STRUCTURE OF PROCUREMENT & INPUT

DEPARTMENT:

CHART.1.1

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Raichur Bellary and Koppal Milk Union Ltd.

Manager P & I

Deputy Manager Deputy Manager Deputy Manager

(Procurement) (Animal (Feed, Fodder)
husbandry)

Asst.Manager Asst.Manager Asst.Manager

(Procurement) (Animal (Feed, Fodder)
husbandry)

Clerk
Extension
Officers Clerk

Clerk

2. PRODUCTION DEPARTMENT

The unit of Raichur, Bellary and Koppal consists of all high level
technological processing equipments.

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Raichur Bellary and Koppal Milk Union Ltd.

These mechanized high technology machines help in retaining the quality of

the milk and also help to increase the production capacity and there by saving time
and energy.

The production rate of the year 2005-2006 is 42,542 liters, which has been
increasing by leaps over the years. This is all too good technological equipments.

Year Procurement Sales

2000-2001 34952 34426
2001-2002 34932 37305
2002-2003 37971 37435
2003-2004 37427 40348
2004-2005 42263 40538
2005-2006 50847 42542
2006-2007 52244 54274
2007-2008 57996 71105
2008-2009 59598 91598

CHART 2.1
Manager.

Deputy Manager

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Raichur Bellary and Koppal Milk Union Ltd.

Assistant Manager.

Technical Officer.

Supervisors

Technician. Operators. Workers.

Product Mix

Milk Curd Ghee Butter Lassi Peda

Milk
1 lt 500 ml 500 ml 200 ml 200 ml 250 gm
500 ml 200 ml 200 ml - - -
200 ml - - - - -

PRODUCTION PROCEDURE
Received Milk (raw)

Weight tank

Dump tank

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Raichur Bellary and Koppal Milk Union Ltd.

Chiller

Silo

HTST Pasteurizers

Cream separator

Standardization

Silo (Pasteurized)

Overhead tank

Packing machine

Cold storage (0 C TO 3 C

Dispatch

Market

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Raichur Bellary and Koppal Milk Union Ltd.

Various tests conducted by the quality control department

When raw milk is received the fat from that the fat content is first
checked with the help of a electronic milk tester and on the basis of that fat and
the lactometer reading and the SNF content is also checked using a formula

CLR/4+0.25*F+0.35

Where, CLR = corrected lactometer reading,

F = Fat

Fat is generally 3.8 – 4.3%, SNF is about 28.5 – 29.5% lactic acid in milk will be
around 0.14 – 0.06.

 CHEMICAL TESTS:
Ethylene blue reduction test is done to check the keeping quality of milk
(usually 4.5 hours for pasteurized milk and 5-6 hours for raw milk).
Phosphate test is done check if the pasteurization is done accurately. Milk
needs to be pasteurized at least 72-78%.

 MICRO BIOLOGY TESTS:

Coli form test is done to find out the post pasteurization contamination.
It also sees if there is any fecal contamination.
This test show a nil reading for good pasteurized milk and 10 for curds.
Standard plate count test determines the microbial load in the milk.

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Raichur Bellary and Koppal Milk Union Ltd.

MCKENCY’S 7-S MODEL

The 7-s model is better known as MCKENCY’S 7-s. this is because the
person who developed this model. Tom peter and Robert Waterman. Have been
consultants at MCKENCY’S and company. They published their 7-s model in their
article “Structure is not organization” (1980) and in their books “The Art of Japanese
management” (1981) and “In search of Excellence” (1982).
The model starts on the premises that an organization is not structure, but
consist of seven elements namely:
 Structure.
 System.
 Strategy.
 Skills.
 Style.
 Staff.
 Shared Values.

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Structure

Strategy System

Shared values.

Skill Style

Staff

These seven elements are distinguished is called as hard S’s soft S’s. The
hard elements are flexible and easy to identify. They can be found in strategy
statements, corporate plan, organizational charts and documentation.
The 7-s diagram illustrates the multiplicity inter connection of elements
that defines as organization ability to change. The theory helped to change the
manager thinking about how companies could be improved. It says that it is not just of
devising a new strategy and following it through. Nor is it a matter of setting up new
system, and letting them to generate improvements. To be effective, organization
must have a high degree of fit, or internal alignment among all 7-5 each is must be
consistent will be reinforcing the other S’s. All S’s are interrelated, so a change in one
has ripple effect on all others. It is impossible to make a progress on one without a
making progress on all. Thus to improve organization you have to pay attention to all
of the seven elements at the same time. There is no starting point or implied
hierarchy-different factors may drive the business in any one organization.

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Raichur Bellary and Koppal Milk Union Ltd.

 Shared values (Mission, goals)

 Style (Culture, Leadership)
 Strategy (Corporate, business, product/market)
 Structure (Virtual organization)
 Staff (Empowerment)
 Skills (Competencies)
 Systems (Processes)

The four soft S’s however, are hardly feasible. They are difficult to describe
since capabilities, values and elements of corporate culture are continuously
developing and changing.
They are highly determined by the people at work in the organization.
Therefore it is much more difficult to plan or to influence the characteristics of the
soft elements.

DESCRIPTION:

The hard S’s:

* STRATEGY:

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

external environment.

* STRUCTURE:

Basis for specialization co-ordination influenced primarily by strategy and by

organization size and diversity.

* SYSTEM;

Formal and informal procedures that support the strategy and structure.
The soft S’s:

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* STYLE/CULTURE:

The culture of organization consists of 2 components:

1. ORGANIZATION CULTURE:

The dominant values are beliefs and norms, which develop features of
organization life.

2. MANAGEMENT STYLE:

Fundamental responsibility of managers.

* STAFF:

Human resources management processes used to develop managers, ways

of basic values of management cadre, ways of introducing young recruits to the
company.
* SKILL:

The distinctive competencies, ways of expanding or shifting competencies.

* SHARED VALUES:

Guiding concepts, 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.

SKILL:

In RBKMUL the experienced the exposure with the higher echelon and
managers for over a period of three decades as the business in inherited in the family
each workers, in continuously guided to attain efficiency to archive the required
quality in production. They are aware of the sources where the skills can be natured
and who the master of particular trade. The manager should have the managerial skill
and they should have the ability to take right decisions. They should manage the
personnel and make them carry out their responsibility.

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Raichur Bellary and Koppal Milk Union Ltd.
RBKMUL has adopted on the job training to improve the necessary skills of the
employees. They send the employees to their own institutions such as ANAND and
KMF for training.

STYLE:

Style expenses the nature of RBKMUL group. Style of leadership or

relationship is the manner is which an individual is given importance to his or her
talents, values, knowledge judgment and attitude to lead and relate to others.
 The organization believes in placing the employees in the right jobs.
 The organization believes in giving the employees authority and confidence
in decision making.
 The organization believes in seeing to it that the employees are able to grow
to meet both their own needs and the needs by RBKMUL group.
RBKMUL has a three tier structure depict the flow of authority in the
organization.

THREE TIER STRUCTURE:

1. Top Management---------------------Board Of Director (policy decisions)

2. Middle Management-----------------Managing Director (Implementation policies)
3. Lower Level Management-----------Workers (Execution Of The Policy)

STRATEGY:

A strategy is the determination of the basic long term goals and objective
of an enterprises and the adoption of the course of action allocation of resources
necessary for carrying out these goods.

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Raichur Bellary and Koppal Milk Union Ltd.
* PRICING STRATEGY:

The activity of fixing the policy of the product is done by the KMF. It
fixes a common price for the products through out the state. RBKMUL will follow
that price only to sell the products produced.

* PROMOTIONAL STRATEGY:

The promotional activities done by RBKMUL are:

 Wall paintings, advertisement through cable network, awareness programs
and door to door campaign is done by RBKMUL.
 RBKMUL provides more incentives to the retailers only in cash.
 RBKMUL also cover the extension areas.

SYSTEM:

A system is defined as a process, or set of process, that links and orders

activities to enable work to be done and goals to be achieved. System is simple words
is the formal and the informal procedures, including, compensation systems
management information system, performance management system, and capital
allocation system that gives everyday activity.

STAFF:

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 works and company. The top manager 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 performing efficiency.

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Raichur Bellary and Koppal Milk Union Ltd.

CLASSIFICATION OF STAFF IN RBKMUL AS FOLLOWS:

 Technical Officers - studies dairy technology.

 Supervisory Officers - Look after the job done by workers.
 Clerical Officers - Carry out the paper work.

SHARED VALUE:

Shared values are the identify by which a company is known through out
its business areas. These values must be explicity stated as both corporate objective
and individuals values. A shared value is an essential characteristic or attribute
promoted by the organization to motive the behavior of members of the organization

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3. ADMINISTRATION DEPARTMENT

HIERARCHY OF ADMINISTRATION DEPARTMENT:

CHART 3.1

Administration
Officer

Clerical staff

Assistants

The organization does not have human resource department, most of the human

resource works are taken care by administration department.

As the unit is registered under society’s act 1959, it follows certain rules and

regulation.

RECRUITMENT RULES:

The recruitment policy of an organization is two methods. The first one by

direct recruitment from the outside, the second method is by promoting the existing

staff members.

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Raichur Bellary and Koppal Milk Union Ltd.

DIRECT RECRUITMENT:

Under this method selection can be made either by competitive examination or

oral interview. The recruitment and promotion shall be ground by the grade and

recruitment rules duly approved by the registrar of co-operative societies.

APPOINMENT PROCEDURE

DIRECT RECRUITMENT:

If it is by competitive examination after giving adequate publicity as the

appointing authority may determine in the order of merit subject to reservation from

the list of candidates prepared by the selection committee.

If it’s by selection after giving such adequate publicity in as least one in

Kannada one in English leading news papers to the recruitment as the appointing
authority may determine

EMPLOYEE BENEFITS:

Group Sharing Link Insurance (GSIL) all the employees on cover under GSIL
scheme of India in case of death the employees are paid insurance amount in
accordance with the category of the particular employee.

Milk subsidiary act employee is provided ½ liter milk at 50% as subsidiary rate
for10 months and one liter milk as 50% subsidiary rate remaining 2 months
November in &December.

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MEDICAL FACILITIES: ESI

Coverage for employees under ESI providing in patient amount of Rs.5000/-per

annum.

CONVEYANCE ALLOWANCE

For the employees who are maintaining car they are providing Rs.550/-per month

and for motor cycle above100cc Rs.350,vehicle below 50cc Rs.150/-per month

and for other 100/-per month.

UNIFORM:

All the regular employees are provided with a pair of uniform and shoes is provided

Once in two years.

SHARE CAPITAL:

Rs.100/-per share only societies are eligible.

RECREATION FACILITIES:

A recreation facility to reduce stress of workers and helps to relax for some times.
Two Time tea daily for all the employees.

LUNCH:

Permanent employee :Rs.3/-per day

Contract employee : Rs.4/-per day

Others : Rs.12/-per day

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Raichur Bellary and Koppal Milk Union Ltd.

4.FINANCE DEPARMENT
CHART 4.1

Managing Director

Accounts Officer

Acc. Assistant

Clerical staff

ROLES AND RESPONSIBILITIES OF FINANCE DEPARTMENT:

 To maintain the book of accounts from time to time.

 To prepare profit and loss account, Balance sheet in the stipulated period.
 To maintain the necessary documents in file and in systems.

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 of clerks
and assists including cashier.
The main function of this department is to take care of all bills passed and
bought to prepare income and profit and loss statement and also the annual financial
statement. The finance department get funds externally only from the NDDB
(National Dairy Board). They provide funds only for expansion purpose and purchase
of fixed capital like machinery plant and building etc. on long term loan basis. The

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Raichur Bellary and Koppal Milk Union Ltd.
working capital is provided by the internal working (depends upon procurement of
milk i.e.. from producers). No financial assistance is provided except for long term

loan for expansion. The only government assistance offered to the farmers in the form
of lending loans to purchase cows. Non financial assistance is in the form of
veterinary hospitals etc.

They prepare budget preparing yearly IBP (Integrated Business Plan). The
budget amount depend upon procurement and sale of milk. Each section will purpose
their requirements. Finally the IBP will be approved by the board. Internal auditing is
done by a charted accountant who makes a pre-audit and the final audit is compiled
by auditors from co-operative audit department, government of Karnataka.

DAY TO DAY ACTIVITIES CONDUCTED BY THE FINANCE

DEPARTMENT:

Every day cash book is maintained to record the cash receipts and cash
payment any the day. The check received are also entered in the receipt books and
later on this information are feed into the computer to record. Tally software is used in
accounts. For every payment to societies is made on weekly basis and the societies
will pay to the producer keeping a small margin for running the societies. The
vouchers are also raised against pouch film. Unusually, it is on credit basis.
The staff salary in made on monthly basis according to attendance. The
only payment that has to be paid in advance is when diesel is brought form Indian Oil
Corporation the purchase of furnace oil and diesel. Important rest system is also
maintained that get reimbursed once in 10 days by the respective departments.
Apart from daily activity, the training activity, laboratory activity etc., are
passed through here that is all expense, relating to these sections are passed for
payment in this department. The books initially maintained are cash book, cash books
to monthly ledger (Classified according to head wise), monthly ledger to annual
ledger, annual ledger to receipt and payment account’s, receipt and payment accounts
to trading account finally balance sheets is prepared monthly. Profit and loss account
is prepared and board of the union obtain approval.

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5.MARKETING DEPARTMENT
Marketing is indeed an ancient art. It has been practiced from the age old
times. But their need for selling even basic commodities is of recent origin. In a short
period of times, marketing has grown to such an extent that it is being viewed as the
most important of all the management function in a business.

Marketing mix of nandini is a follows

PRODUCT:
They are flooring milk in different quantities like half liter & one liter
The quantity of the milk is also high. The brand name of the firm is very popular.
The system of milk packing is very hygienic and convenient for the transport purpose.

PRICE:
The pricing method followed by the firm is very sound and prices of the
product are very competitive.
Products Price to Dealers Commission MRP (Rs)
(Rs)
Shubam 20.00 1.0 21.00
Toned Milk 16.40 0.60 17.00

PROMOTION:

The marketing department giving advertisements in news papers. They also give

ads in local channels like city cable, publicity through pamphlets/folders.

PLACES:

Distribution channel is as follows

DAIRY ----------DEALERS---------CONSUMERS

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CHANNEL OF DISTRIBUTION:

The distribution network of milk was found to be very systematic and has
made distinct role in the successful marketing of milk.

THE NETWORK FOLLOWS:

Processing and Manufacturing

Storage

Dealers and Retailers

Consumers

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HIERARCHY OF MARKETING DEPARTMENT

CHART 5.1

Managing
Director

Deputy Manager
(Bellary)

Deputy Manager Marketing Marketing Officer

I/c
I/c (Raichur)
(Rachur) superindeat
I/c (Hospet0

Marketing officer
Marketing officer Marketing Marketing
Assistant superindeat

Marketing
Working
Assistant
Assistant\Clerks

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Raichur Bellary and Koppal Milk Union Ltd.

Responsibilities of Marketing Head

Planning:
Preparation of annual and long-term marketing plans.
Preparation of time action plan in consultation with the marketing team.

Distribution:

1. Markets, towns covered

2. Appointment of distributors / retailers
3. Establishment of new parlors
4. Institutional customers
5. Physical stocks
6. Incentive and margin of retailers

Sale Promotion:
1. Formulation of budgets
2. Strategies to be employed
3. Allocation of budget

Operation
 Implementation of marketing plan
 Achievements of sales targets of the union
 Sales departments

Reporting
 Reporting to the managing director
 Report on monthly/ quarterly basis of KMF in consultation with MD

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Other tasks:
 Co ordination with NDDB, KMF and other milk unions.
 Co ordination with other functional departments
 Plan of action, support needed to achieve target.

Strategies :

1. Improve visibility and availability of milk Bellary, Hospet, Koppal and

Raichur cities by pole adds hoardings, wall paintings and setting
parlours.
2. Assigning sales target for filed officers.
3. Facilitate door delivery of milk through milk retailers and unemployed
boys.
4. Penetrate the new markets by rescheduling the existing milk
distribution routes.
5. Concentrate more on institutional milk supplies like hotels, marriage
and function hall.
6. Propose to reschedule milk distribution routes to cover the uncovered
area in both city as well as Upcountry. Proposed to conduct Door – to
– Door survey with the help of management school students in Bellary
and Lingasgur Cities.
7. Cold chain facility will be strengthened to supply good quality milk to
consumer
8. Mahaila mandal meeting, milk testing programmer will be conducted.
The program will be organized in presence of local area leader, Doctor,
while conducting the program, all the available milk sachets in the cit
will be tested for quality and consumer will get convenience about the
quality and quantity of milk supplied by private brands.

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6. MANAGEMENT INFORMATION SYSTEM:

CHART 6.1

MIS Officer

System Officer

Staff.

FUCTIONS OF M.I.S

 Collection of information from different departments.

 Monthly analysis report is analyzed by MIS.
 Preparation of annual budget.
 Company projection report.
 Complaining and obliging with other department.
 Coordinating computerization.

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7.PURCHASE DEPARTMENT

The purchasing activities include selecting good geographical area, which is well
suited for cattle, and were the cattle are more in number.

Purchasing is a managerial activity that goes beyond the simple act of buying includes
the planning and policy activities covering. Wide range of related and complementary
activities. The purchasing department occupies a vital and position in the
organization.

Objectives of Purchase department

 To procure right material

 To procure material in right quantity.
 To procure from right and reliable sources of vendor.
 To procure material economically i.e. at right or reasonable price.
 To receive and deliver material ay place and right guide.

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Raichur Bellary and Koppal Milk Union Ltd.

SWOT ANALYSIS OF THE COMPANY:

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. It

is a methodology used to aid strategic planning that gained popularity during the 80’s.
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.
Strengths and weaknesses are internal to an organization. Opportunities and Threats
originate from outside the organization. A SWOT analysis, usually performed early in
the project development process, helps organization’s evaluate the environmental
factors and internal situation facing a project.
The SWOT analysis is a conceptual frame work for a systematic
analysis that facilitates matching the external Threats and Opportunities with the
internal Weakness and Strengths of the organization. It has been common to suggest
that the companies identify their Strengths and Weakness, as well as the Opportunities
and Threats in the external environment. But what is often overlooked is that
combining these factors may require distinct strategic choices. To systematize these
choices the concept of SWOT has been proposed; where

S - STRENGTHS
W – WEAKNESS
O – OPPORTUNITIES
T - THREATS

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Raichur Bellary and Koppal Milk Union Ltd.

SIMPLE RULES FOR SUCCESSFUL SWOT ANALYSIS:

 The organization should be realistic about its strengths and weaknesses.

 Analysis should distinguish between where the organization is today, and
where it could be in the future.
 Organization should be specific in its approach towards what they do.
The SWOT analysis provides information that is helpful in
matching the firm’s resources and capabilities to the competitive environment
in which it operates. As such, it is instrumental in strategy formulation and
selection. The following diagram shows how a SWOT analysis fits into a
environmental scan.

SWOT ANALYSIS FRAME WORK:

Environmental scan

Internal Analysis External Analysis

Strengths Weaknesses Opportunities Threats

SWOT Analysis

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Raichur Bellary and Koppal Milk Union Ltd.

STRENGTHS:
 Share holder (i.e. farmers and members of union)
 Supplying of good quality milk and milk products.
 Good brand image in market.
 Consumers are highly satisfied with Nandini products.
 Wide range of products is available in market.
 Faith in co-operative union.
 There are no giant competitors.
 RBKMUL has a strong customer base.
 The organization won market monopoly.
 Large network of organized suppliers for a procurement of milk.
 Technological support from NDDB each and every developmental stage of
the organization.
 The organization is capable of meeting the large demand, which cannot be
met by any other sources.

WEAKNESS:

 Lack of healthy environment.

 In – effective management.
 Less counseling, interaction between employees.
 Individual approach in decision making.
 Decrease in organizational interest.
 Tight overhead costs.

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Raichur Bellary and Koppal Milk Union Ltd.

.OPPORTUNITIES:

 Opportunities to introduce product range.

 Installation of bulk milk coolers for quality improvement.
 Expansion of product line in current market.
 Awareness programs to be conducted frequently to improving the
understanding between management and employees.
 Strengthening of union- management relationship to achieve organization
objectives.
 Large area of land is available for different activities;
- Plant expansion.
- Fodder development.

THREATS:

 Increase in competitors in the local market.

 Chance in technology.
 Limited market
 Increase in milk procurement affects the process
 Unethical practices of competitors
 A group of unorganized local vendors can dominate he market.

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Raichur Bellary and Koppal Milk Union Ltd.

FINDINGS:

 The unit covers Raichur, Bellary & Koppal districts in Karnataka. The basic
function of the unit is to procure milk from different villages and to sell the
same to the consumer after pasteurization and better packing.
 However the unit has maintained different stages of production of milk.
Resulting qualitative milk and less wastage is achieving from the milk unit.
 If the procurement of milk is less then requirement the milk will be collected
from inter dairy co-operatives.
 Other sub products of Nandini (that is Nandini ghee, peda, buttermilk etc.,)
milk promoted by the Nandini milk.
 The milk supplied by the producers and procured by the co-operatives is not of
uniform quality.
 The leakage of milk during the transportation from co-operative to chilling
centre.

 The dairy industry has grown to the stage due to well planned and effective
Co-ordination of NDDB and Government..
 The rate of production of milk is constantly increasing i.e, around 50,000lts.
 The quality control dept gives more priority for various tests to give good
pasteurized milk.
 The company is been successful by penetrating into many new markets i.e. in
rural market.
 The company gives special attention for Mahila Mandal milk.

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Raichur Bellary and Koppal Milk Union Ltd.

SUGGESTIONS:
1. The company needs to give more priority for advertisement. In order to build more
brand awareness in the market.

2. Job rotation, job enlargement and job enrichment needs to be done frequently
which would motivate an employee to perform better.

3. It is suggested that they may give offers like discounts, price offs to customers on

Purchase of milk in large quantity.

4. It is suggested to give coupons, scratch cards and festival offer schemes to the

Customers, as these are new trends to attract the consumers and increase the sales.

5. It is suggested that they should make provision to reach their products to the

Customers at all places and at any time.

6 . They should concentrate more on competitor’s advertisement technique.

7. The union should make necessary steps to availability of the milk in all places .It is

very helpful to the customers in time saving.

8. The union should take steps to the expansion of the processing facility.

9. The company needs improve cold chain facility in order to supply good quality.

10. The marketing teams and sales executive must be assigned with achievable sales

target in order improve their performance.

11. The company needs to focus more on domestic consumption of milk by door to

Door delivery system.

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Raichur Bellary and Koppal Milk Union Ltd.

CONCLUSION

It was a great opportunity to do the in plant training/organization study is the

prestigious co-operative RBKMUL.
As part of this program, I acquired a good knowledge about the milk
industry. In India, dairying has been practiced as a rural cottage industry since the
remote past. Semi-commercial dairying started with the establishment of military
dairy farms and co-operative milk union through out the country towards the end of
the 20th century and the Indian dairy industry has mode rapid progress since
independence.
The company has adopted top-down approach in its structure. Here the
departmental head is held responsible for all the activities concerned to the
departments.
Skill refers to the employee capabilities. It plays a vital role in the quality
production and cost minimization. The company has a group of skilled and he
experienced employees who are considerable as assets of the company. The company
and gives more importance to improve the employees skills. To develop the skills,
Bellary milk union sends their employees to ‘ANAND’ and ‘KARNATAKA MILK
FEDERATION’ for training.

Company is given importance to build a healthy relationship between the

employees the management. In spite of authoritative style, company maintains
transparency in each and every activity. Company has provided a flexible
environment to the employees to grow themselves in the organization and to meet the
organization needs besides fulfilling the individual needs.
They play a vital role in achieving the corporate objectives and also in maintaining
cordial relationship with supplies and customers. But in Bellary milk union they lack
such co-ordination relationship with management and employees.

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Raichur Bellary and Koppal Milk Union Ltd.

Employees are satisfied their jobs, their attitude enthusiasms talents and skills and
organization culture play a very important role in an organization.

The in plant training was really a great experience. Now I can say that even though
the in plant training was one month I was able to enhance the practical business
model. Lastly this in plant training was provided me a required levels of motivation
the kind of attitude one should have to work in a corporate field. The acquisition
necessary like commission skills, inter personnel skills, managerial skills and
leadership traits.

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 Raichur Bellary and Koppal Milk Union Ltd.

ANNEXURE

Balance Sheet
As on 31-March – 2008
Liabilities as at 31-03-08 Assets as at 31-03-08
Fixed assets 8,72,43,679 11,58,12,635
Plant & machinaries 1113240 758117
Building a/c 3 1409931
Fixed assests-grants 7248402 5407215
Land 3 523384
Office equipments 1827253 1,1347098 216957
Plant &machineries(Grant) 5695706
Air conditioner
Borwell 1134709 6,33,41,560 117309
Bottle Coolers 8 898292
Building 227141
Computer And Printers 23285800
Computeristion-accounts 2487727 411654
DRDS SHED Raichur 2907612 1229660
Electrical Equipments 6080298 429976
Fire fighting Equipments 1359777 2923049
Furniture & Fixtures 7 105178
KUDLIGI C.C 1305443 731480
Kustagi Cc 4 158763
Lab equipments 883436 129061
Newdairy Equipments 250238 70176
Office Equipments 266561 15439322
Parlour building 2052286 943670
Plant & machinery 2 3,8465390 502265
PUR.Cryocans 2914000 35142392
Road milk Tanker 43560 1170321
Typewriters 122667 691428
Vechele-Bolero Car 210387 11754
Vechicles 533246
Vet& A.I.Equipment 403967
Work in progress-BMC(GOI) 7619435 1704795
Xerox Machine 5407565
5695706 7619435
INVESTMENTS 2399000 98122
FD-BDCC-6338 3513099
FD-BDCC-6339 1638174 2,53,79,134
FD-KDR 1151/07 1750000 3541032
FD-KDR1152/07 250000 89,24,347 3570251
FD-KDR 1153/07 4153773 3243046
FD-KDR-1378 873557 2632021
Shares in karnataka state insurence 4665079 7958158
co-op socity 500000 2638626
SHARES IN KMF 25000
SHARES IN RDCC BANK
3695797 1770000
5228549 1000

CARRIED OVER

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 Raichur Bellary and Koppal Milk Union Ltd.

20,93,22,075
14,11,91,769

Balance Sheet As on 31-03– 2008

Liabilities as at 31-03-08 Assets as at 31-03-08
BROUGHT FORWARD 20,93,22,075 BROUGHT 14,11,91,769
FORWARD
5,67,09,204
Current assests 921606
Audit objection 12630608
Closing stock 2536143
Deposits(Asset) 1667731
Loans & advance(Asset) 9807065
Sundry debtors 1319862
Cash-in-hand 20357939
Bank account 3431200
Amruta yojane cattle
advance 3994142
Gok regional imbalance
eradication 21773
Staff negligency 21133
recovery
Recovery 06-07-
Dr.sunil,stores I/C 1,14,21,101

Bank accounts-plan 11421101

scheme

Bank accounts-others

Profit & loss

Account 03-04
TOTAL 20,93,22,075 TOTAL 20,93,22,075

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Raichur Bellary and Koppal Milk Union Ltd.

BIBLIOGRAPHY

Books of reference

AUTHOR BOOK EDITION PUBLISHER

Company manuals
And magazines
Philip kotler Marketing Millenium Prentice Hall
Management Edition
C.R. Kothari Research Second New Age
Methodology Edition International
Pvt ltd 1999
K. Aswathappa Production and Himalaya
Operations Publishing
management House 2003
Stephens Robins Organization Eight
Behavior Edition
Fred Luthans Organization Nineth
Behavior Edition

 Web site:
 WWW.kmfnandini.com
 WWW.Google.com
 WWW.Yahoo.com
 WWW.Kmf.com

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