A On The Organizational System and Organizational Progress of Bangalore Milk Union LTD (BAMUL)

An Organizational study at BAMUL
A
Report
On the Organizational System and
Organizational Progress of
Bangalore Milk Union Ltd (BAMUL)
Submitted for the partial fulfillment of

Master of Business Administration
By
JAGADEESH K.V
II semester
SURANA COLLEGE
Under the esteemed guidance of

Dr. APARNA RAO
(Internal Guide)
SURANA COLLEGE
Surana college 1
Acknowledgement
The satisfaction that accompanies the successful completion of any

task would be incomplete without mentioning the people who have made
it feasible with constant guidance and encouragement served as a beacon
light and crowned our efforts with success.
I consider it as my privilege to express through this report a few

Words of profound gratitude and deep regards to all those who guided me
in completing this project. I would like to thank S. Sundaram
Managing Director, BAMUL for his unvarying and valuable guidance
throughout the project work.
I sincerely thank Prof. H. Appannayya, coordinator,M.B.A.

Department for his precious support, and, Dr. P. Aparna rao lecturer,
M.B.A department for supporting and guiding me as an internal guide.
Last but not the least, it is my proud privilege and I have to search
words to express my indebtedness to my parents and all my friends who
helped to complete the project.
This has been a great learning opportunity for me and I am highly

indebted to the above people for giving this opportunity.
JAGADEESH .K.V
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INDEX
CHAPTER CONTENTS
1. INTRODUCTION
2. MARKETING DEPT
3. H.R.M DEPT
4. M.I.S DEPT
5. FINANCE & ACCOUNTS DEPT
6. PRODUCTION DEPT
7. PROCUREMENT & INPUT DEPT
8. QUALITY CONTROL
9. PURCHASE DEPT
10. STORE DEPT
11. SWOT ANALYSIS
12. CONCLUSION
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CHAPTER-1
COMAPANY PROFILE
(BAMUL)
BANGALORE MILK UNION LIMITED:-
Bangalore milk union (BAMUL) is a biggest Co-operative Milk

Union in South India, fully owned and managed by milk producers of
Bangalore Rural and Bangalore Urban Districts of Karnataka State. Since
its inception in 1965, the union is constantly striving to further the dairy
development and marketing activities in its milk-shed area.
BACKGROUND:-
On January 1st 1958 a pilot scheme under Department of animal
husbandry, Govt of Karnataka was started to cater, Veterinary Hospital’s
and milk process facilities at National Dairy Research Institute (NDRI). In
1962, the Bangalore Milk Supply Scheme came into existence as an
independent body. Bangalore Dairy, a joint venture of UNICEF, Govt of
India and Govt of Mysore was dedicated to the people of Karnataka State
on 23rd January 1965 by honorable Prime Minister Late Sri Lal Bahadhur
Shastriji. The Bangalore Dairy scattering over an area of 52 acres of land,
the Dairy had an initial capacity to process 50,000 liters of milk per day.
This Dairy was handed over to Karnataka Dairy Development Corporation
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(KDDC) in December 1975. As a pert of Rural Milk Scheme of Mysore,

Hassan and Kudige under Operation flood - II and then transferred to
Karnataka Milk Federation (KMF) in May 1984 as a successor of KDCC.
To cater to the growing demand for milk by the consumers of the
Bangalore City, the capacity was introduced to 1.5 lakhs liters per day
under the Operation Flood - II during 1981 and later increased to 3.5 lakhs
liters per day under Operation Flood - III during 1994.
The Bangalore Urban and Rural District Milk Producers

Co-operative Societies Union Ltd., (BAMUL) who has established in the
year 1975. The milk-shed area of the Union comprises Bangalore Rural
and Bangalore Urban Districts, having 2611 revenue Villages. The Union
has organized 1547 Dairy Co-operative Societies (DCS) in 2037 Villages,
thereby covering 78% of the total villages in these 2 districts. In these
DCSs, there are 3,09,577 milk producer members. Among them 91,746
members are women and 56,000 members belongs to Scheduled Castes
and Scheduled Tribes.
As per the policies of the National Dairy Development Board

(NDDB), Bangalore Dairy was handed over the Bangalore Milk Union
(BAMUL) on 1st September 1988. The Union is capable of processing the
entire milk procured, by timely implementation of several infrastructure
projects like commissioning of Mega Dairy, new chilling centers and
renovation of product block.
BAMUL has been registered under MMPO by Central Registration

Authority. Today, the Union has become biggest Milk Co-operative Union
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is Southern India. BAMUL has been certified ISO 9001 - 2000 and
HACCP (IS - 15000) for quality management and Food Safety System.
The philosophy of this co-operative milk producers organization is

to eliminate middlemen and organise institutions owned and managed by
milk producers, by employing professionals. Achieve economies of scale
of rural milk producers by ensuring maximum returns and at the same time
providing wholesome milk at reasonable price to urban consumers.
Ultimately, the complex network of co-operative organization should build
a strong bridge between masses of rural producers and millions of urban
consumers & achieve a socio-economic revolution in the village
community.
Bangalore Milk Union is offering most remunerative purchase
price, which is considered as one among the best prices in the country, to
its producers. Even though the Union is offering the best prices to the milk
procured, the swelling price of milk and milk products to consumers is the
lowest in the country. Hence, the margin between the procurement
price and sales price is one among the least in the country. This cost
competitiveness was achieved due to large-scale milk procurement,
processing and marketing, supported by effective and efficient
management systems. In recognition to these efforts and achievements, the
National Productivity Council (NPC) of Government of India has
conferred “Best Productivity Award” FIVE TIMES and “Energy
Conservation Award” by Bureau of Energy Efficiency (BEE) to the
Union.
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Organization Status:
The member producers and there Dairy Co-operative Societies

(DCS) are the vital constituents of the union and their progress is the
judging yardstick on the efficiency of the union’s operations. Hence the
maximum importance has been given to their development.
The union is making concerted efforts over the years to organize

DCSs in more and more villages of the two districts in the milk-shed area.
Up to now, the union has organized 1548 DCS, functioning in 2037
villages, thereby covering 78% of the total villages.
Year Functioning DCS

1995-96 918
1996-97 994
1997-98 1055
1998-99 1119
1999-2000 1165
2000-01 1266
2001-02 1301
2002-03 1388
2003-04 1433
2004-05 1483
2005-06 1547
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Functioning DCS
2000
1500 Functioning
1000
500 DCS
0
19 9 6
99 8
20 2
6
20 04
20 0
19 7-9
-0
-0
00
03
-
95
01
05
-2
9
19
Importance is given to enroll more and more producers in the

villages as members of DCS. While enrolling these members, several
years, more emphasis is being accorded to enroll increasing number of
women members and to organize more women managed DCSs under
STEP (Support to Training and Employment Program for Women). It is
heartening to note that there is active participation of women and weaker
sections of the society in all the Dairy development actives of the Union.
They have become the mainstay of all the developmental program of the
union. This has resulted in the accrual of economic benefits of these
programs to the most vulnerable sections of the rural economy.
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100%
80%
60%
Woman Members
40%
Total Membership
20%
0%
19 19 19 19 19 20 20 20 20 20 20
95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 05-
96 97 98 99 00 01 02 03 04 05 06
MILK PROCUREMENT
The daily average milk procurement of BAMUL for the period of

2005-06 (till Dec 2005) was 8.29 lakh kgs, which works out to be 535 kgs
per day per DCS. Curing the year the milk procurement touched a peak of
8.95 lakh kgs per day. In Milk Procurement, Bangalore Milk Union Stands
FIRST in Karnataka State and SIXTH position in the Country.
MilkProcurement (Av
g. Kg'sperday)
900000
800000
700000
600000
500000 MilkP rocurement
400000 (Avg. Kg'sperday)
300000
200000
100000
0
6
0
0
-9
-9
-0
-0
-0
0
-2
5
5
9
0
9
9
0
9
0
9
1
2
9
1
BAMUL is offering the most remunerative milk procurement price to

member producers. The operational efficiency is reflected on procurement
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prices paid to the member producers. The average milk procurement price
paid during the year was Rs. 9.31 for every Liter of Milk supplied to the
Union. Which is 72% of total cost of production.
Milk collected at DCS will be transported to Chilling Centers,

through 93 Milk Procurement Routes, by traveling 14,738 KM’s every
day. 5 Bulk Milk Cooler (BMC) Routes are also in operation, which
collects milk from 35 BMC centers of 68 DCS directly transported to
Bangalore Dairy through insulated tankers.
Milk Purchase 72%

Int & Bank charges 2%
Misc 5%
Sales and Admin 6%
Ret.Margin 3%
Packing 3%
Process 5%
Transport 4%
Milk Purchase
Int &Bank
charges
Misc
Sales andAdmin
Ret.Margin
Packing
Process
Transport
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OBJECTIVES OF THE UNION:-
• To organize Dairy Co-operative Societies at village level and

dissemination of information like good dairy husbandry and
breeding practices; & clean mild production through Extension
Services.
• To provide assured and remunerative market for the milk produced
by the farmers members of the union.
• To provide technical inputs like veterinary services, artificial
insemination, supply of balanced cattle feed and seed material etc to
milk producers.
• To provide hygienic and quality and milk products at competitive
rates to urban consumers.
• 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 to
milk producers.
• To provide competitive prices to the milk produced by the farmer
members of the union in order to improve the standard of living.
• To provide appropriate medical facilities to the cattle in order to
maintain the health condition of the cattle.
• To provide quality milk and milk products to urban consumers at
competitive prices.
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Principles:-
The formal principle of the Bangalore Milk Union is bound to get

nationwide best place in milk production. In order to achieve the same, the
union follows the under listed principles.
• To help its member associations financially and socially and to

improve their works towards making a profile business.
• To adopt modern technology.
• To provide the best service to the customers and the milk producers
through services and dedication of employees union.
MISSION:
“Ushering rural property in the lives of members of milk producers.”
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Mile Stones of BAMUL:
• Bangalore Co-Operative Milk Producers Societies Union Ltd was

established on 16th November 1976.
• After the bifurcation of the above union, into two separate union for
Bangalore Districts (Urban and Rural) and Kolar District, Bangalore
Urban and Rural District Co-operative Milk Producers Societies
Union Ltd (BAMUL) on 23rd March 1987.
• Bangalore Dairy was taken over by BAMUL on 1st September 1988.
• MMPO-1992 Registration No 42/R.MMPO/93 dated 7th June 1993
renewed on 13th May 1999.
• Bangalore Mega Dairy started functioning on 17th December 2000.
• Bangalore Dairy ISO 9001-2000 certified by SAI Global, a reputed
Australian based Company on 19th February 2003.
• Bangalore Dairy HACCP IS-15000 Certified by SAI Global, a
reputed Australian based Company on 19th February 2003.
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KMF units in Karnataka:
LIST OF CO-OPERATIVE MILK PRODUCERS SOCIETIES

UNION
 Bangalore 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
 Tumkur Milk Union
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Operational areas of BAMUL:-
BAMUL is playing a vital role in the district by covering 2037

villages of Bangalore district for their dairy activities. The philosophy of
this Co-Operative milk producer’s organization is to eliminate middle men
and organize institutions owned and managed by milk producers, by
employing professionals. Achieve economies of scale of rural milk
producers, by ensuring maximum returns and at the same time providing
wholesome milk at reasonable price to urban consumers. Ultimately, the
complex network of co-operative organization should build a strong bridge
between masses of rural producers and millions of urban consumers and
achieve a socio-economic revolution in the village community.
The BAMUL has 7 chilling centers in the district. They are:

• Anekal Chilling Center-capacity is 60,000 LPD.
• Byrapatana Chilling Center-capacity is 60,000 LPD.
• Doddaballapur Chilling Center-capacity of 40,000 LPD.
• Vijayapura Chilling Center-capacity of 1,00,000 LPD.
• Solur Chilling Center-capacity of 60,000 LPD.
• Hoskote Chilling Center-capacity of 1,50,000 LPD.
• Kanakpura Chilling Center-capacity of 50,000 LPD.
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Capacity of the Main Dairy:-
• Milk processing capacity was 60,000 liter per day (LPD) at

the time of establishment of the Dairy on 23rd January 1965.
• Milk processing capacity was expanded to 1.5 lakhs LPD on
1st February 1981.
• Milk processing capacity was further expanded to 3.5 lakhs
LPD during 1994.
• Milk condensing plant-3 metric tons per day.
• Spray Drying plant-5 metric tons per day.
Seasons:-
In BAMUL whole year is divided into two parts depending on the
availability of milk, viz;
Flesh season
Lean season
Flesh season means where there is availability of grass and feed in

plenty to animals. The animals will produce more milk and the supply of
milk to dairy is also very high from farmers. When the procurement of
milk reaches the peak level gradually, this period is known as flesh season.
Normally sunless days are called lean season, because in these days
there is no availability of sufficient grass to animals. It reflects in less
quantity of milk production in this period.
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Products:-
BAMUL mainly does purified milk and milk products. The

products that are produced by these units are:-
• Purified liquid milk
• Pede
• Kova
• Curds
• Butter and butter milk
• Masala butter milk
• Ghee
• Set curd
Workforce:-
BAMUL has 400 employees currently working in the organization.
Number of employees:-
Permanent 0939
Men Employees 0831
Women Employees 0108
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CHAPTER – 2
MARKETING DEPARTMENT
Marketing management in the analysis, planning, implementing and

controlling of programs designed to bring about desired exchange of goods
and money with target market needs and desires and using effective
promotional activities to improve sale and attain the desired profit.
Departmental Hierarchy:-
Marketing department comprises of departmental head and further
divided into two categories and further into officers then to
superintendents. Salesmen and dispatchey. The hierarchy is as under.
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Marketing Department:
Manager
(Marketing)
Dy Manager
(Marketing)
Asst Manager
(Marketing)
Officers
Suptd
Marketing Asst-1
Marketing Asst-2
Marketing Asst-3
Helpers
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MILK AND MILK PRODUCTS MARKETING
Bangalore Dairy markets the following types of milk and milk products:
• Toned milk – 3% fat & 8.5% SNF
• Homogenized Toned milk – 3% fat & 8.5% SNF
• Full Cream milk – 6% fat & 9% SNF
• Nandini Goodlife (3.5% fat & 8.5% SNF)
• Nandini Full Cream milk (12% fat & 9% SNF)
• Nandini Smart (1.5% fat & 9% SNF)
• Nandini Slim (with less than 0.5% fat & 9% SNF)
• Curds
• Peda
• Sweetened Lassie and Sweetened Curds
• Softy ice-cream
• Flavored Milk
• Spiced Butter Milk
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Objectives of Marketing Department

• To provide utmost satisfaction to the end consumers.
• Create market awareness and preference for Nandini.
• Customer retention.
• Balance the demand and supply of milk and milk products.
• Organize and develop the market share of Nandini effectively.
• Prepare sales budget.
• Formulate strategies to compete with its competitors.
• Always ensure the position of Nandini as the market leader in milk
and milk products.
Functions:-
1. To capture the markets share.

2. To collect information about revenue.
3. Maintain sales and other accounts.
4. To attain major market shares.
5. To over competition.
Market Share of BAMUL:-
60-70% of market share- Nandini.

05-10% of market share- loose milk vendor.
10-20% of market share- other private brands.
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Major competitors:-
The major competitors of BAMUL dairy are the loose milk vendors,
but the other brands are
• Heritage.
• Arogya.
• Doodla.
The Private brands are promoting these products through major
advertising, more retail margins, false information etc.
Marketing Strategies adopted by BAMUL

“Procure more, Produce more, Sell more, and Earn more”
• By procuring and producing more BAMUL 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 nos of retailer ship during 2004-05 75 nos till October 05 were
commissioned.
• As per the demand for milk and milk products available throughout
the day, 26 numbers of Franchise Outlets, 19 nos of parlors are made
functional.
• For the retailers who were not in a position to install chest coolers
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.
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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”
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Channels of distribution:-
The main distribution channel comprises of numerous wholesalers in
the city, then their agents and then the retailers. They supply them in shifts
through their own vehicles.
BAMUL
Dairy
Retailers T.C.D W.S.D

(Agents)
New Products:-
The new product of BAMUL is
• Double Toned Milk
• Masala Butter Milk
• Set Curd
Next planned products to be introduced are Lassi and Paneer.
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Other Services:-
The rates to the order for any occasions and supply without any
extra cost or charges and deliver to the doorsteps of the customers.
Marketing & Sales of BAMUL at a glance
Number of Distribution Routes 147

Retailers 952
Wholesale Dealers 11
Franchisee Outlets 34
Milk Parlors 22
Day Counters 138
Transport cum Distributors 17
Number of
Distribution Routes
Retailers
Wholesale Dealers
Franchisee Outlets
Milk Parlors
Day Counters
Transport cum
Distributors
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CHAPTER -3
HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE TEAM

General Manager (Administration)
Deputy Manager (Administration)
Assistant Manager (Administration)
Personal Secretary / Time Officer / Public Relation Officer /

Administration Officer / Office Manager / Labor Officer
Administration Superintendent
Administration Assistant-I
Administration Assistant-II / Sr. Typist / Sr. Steno
Administration Assistant III
Helpers
Peons
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HUMAN RESOURCE MANAGEMENT

(HR Department)
Human resource management is a management function that helps a

manager to recruit, select, train and develop members for an organization.
It is mainly concerned with the people dimension in organization.
BAMUL has a very efficient HR – department also known as

administrative department. The activities are very limited. But this
department carries out its functions effectively and maintains good
employee and employer relations.
Classification of Employees
• 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 BAMUL
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 probationary employees.
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• 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 o n completion of his apprenticeship period.
Maintenance of service register/personnel files

BAMUL maintains a service register of each employee mentioning
all the service records and the below mentioned facts:
• Particular of the employees.
• Date of joining.
• History of services.
• Pay scale/increment/advance increment/stagnation increment.
• Particulars of leave availed including leave encashment/maternity
leave/miscarriage etc.
• Particulars of record of rewards, praise, punishment or censure
including suspension.
• Place of position.
• Name/age of family members of medical/HTC/LTC.
• Permanent residence address and present postal address.
• Details of training program undergone.
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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
11.Compensation
12.Personal Audit
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 (same
3.6).
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• 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 respects.
HR Practices of BAMUL:-
The following are the HR practices of BAMUL:
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. BAMUL also
provides this allowance because it is situated 11 km away from
Bangalore. Conveyance allowance of Rs. 225/month for persons
owning Scooters/Motorcycle, Rs. 500 for moped where as Rs 1000
for other will be given.
3. Shift Allowance:-
It is an allowance given to employees who work in shifts

(except general shift).
For 1st shift Rs. 2.25 per day
For 2nd shift Rs. 2.50 per day
For 3rd shift Rs. 3.00 per day
Shift allowance should not be taken into account for the

purpose of calculating PF, Bonus etc…
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4. 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.
5. Gratuity:-
The amount of gratuity payable is generally 15 days average

salary. For this purpose salary includes only basic pay, DA and
completed service.
6. 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 10.5% is kept for insurance
• In the event of disablement of any nature, insurance company

will compensate as per the terms and conditions.
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7. Death Relief Fund:-
If any workmen of the factory at BAMUL expire, the

company will declare no paid holiday. However, if the workmen
decide to work on a holiday/weekly off and contributes that day’s
wages to the deceased workmen’s family an equivalent amount will
be granted by the company and thus total amount will be paid to the
nominee of the workmen.
The nominee under the payment of Gratuity act, PF act or

legal heir, as the case may be considered for this purpose.
8. Lease 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
• Special disability leave
• Maternity leave
• Restricted leave
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9. 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.
10. Washing Allowance:-
Washing allowance is also provided by BAMUL to each

employee of Rs. 25.
It will not be taken into account for this purpose of calculating

PF, Bonus, ESI and Gratuity.
11. Salary Advance:-
Workmen will be provided to avail this facility of festival

advance for Rs. 2,000 each employee same has been recovered 10
equal installment of salary of employees.
The other HRM practices practiced in BAMUL are as under:-
• Canteen facilities
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• Festival allowances
• Cold storage allowance
• Heat allowance
• Attendance allowance
• Special pay, allowances inactive
Training and Development
At BAMUL, 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 BAMUL 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 BAMUL. Normally the training
programmes conducted at BAMUL are:
 Workshop on good quality Ghee.

 Computer Basics.
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 ISO Quality System Awareness Programme.

 Workshop on Sale Tax.
 Quality Audit Programme.
 Marketing management.
 Materials management.
 Workshop on First aid.
 Reclair Grades for Milk Packaging Application and Food Laws.
 Total Energy Management Programme.
 Marketing and Brand Management.
 Improving sales effectiveness.
Promotions:-
Promotion for the employees is given on seniority basis. For

promotion, individual employee should have working experience of
about 10 years in a particular department i.e. minimum 5 years.
Trade Unions:-
There are two recognized trade unions. It is formed by

workers for legal issues.
• BAMUL employees union
Participation of employees in decision-making is practiced in

BAMUL. The participation of employees is encouraged only in the
matter pertaining to employee disputed, wants and demand.
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CHAPTER-4
MANAGEMENT INFORMATION SYSTEM
INTRODUCTION: -
Organization has grown in complexity to levels, which are

unprecedented, and information plays a vital role in holding together and
coordinating organization. Information is the mortar that holds together
the Edifice in the modern multi-product, multi-occupied, multi-location
and multidivisional organizations.
MIS department of BAMUL plays a very important and efficient

role for the organization and its integration and co-ordination.
The computerized office work is handled only in this department.

They are working towards networking to make the whole organization
Atomize and inter-connect different department like accounts, marketing,
production, Administration section, etc. through the network of computers
and for easy handling of the different department and smooth of computers
and for easy handling of the different department and smooth flow of
information.
Objectives: -
1. To integrate the different department of an organization.
2. To provide information for decision-making.
Surana college 36
3. To collect and store date and furnish it as and when required by
different of management.
4. To keep informing about the activities in different of organization to

the top-level management
5. To furnish information to board for decision-making.
6. To co-ordinate the different activities and help in smooth

functioning of the organization.
Functions: -
The functions of MIS department in BAMUL are as under: -
1. To furnish monthly reports to KMF, NDDB, and others.
2. Collect the data form internal and external sources compile it

and store it as and when required by the organization.
3. Providing information to the board and help in decision-

making.
4. Catering information to the different department and

divisional heads as and when needed and help them in smooth
functioning.
5. To furnish computer related works such as milk billing, sales

accounting, pay roll, GIS, DIS.
6. Annual budget through integrated business plans.
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7. Conducting monthly variance analysis.
8. Day to day computerization activities of organization.
Sources of Information: -
The MIS department is divided into 3-iier system
• Village level societies
• District Union
• Federation
The information is needed to manage these tiers and even they cater
information for further processing to MIS department.
1. Primary Sources: -
As the name itself suggests that the information in first hand. The
primary sources for collecting information by MIS department are as
follows.
• Milk co-operative societies:-
Here the monthly information pertaining to societies activities like

procurement, number of members in the society, women, SC/ST, and P
and I position. This is collected through field officers called ‘Extension
Officers’.
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• Information collected through the data provided by

facilities/ services to farmers:
• Veterinary
• Services:
Round the clock veterinary treatment is given and information about it is

collected once in fortnight where the doctors visit once in a fortnight and
treat free of cost.
• Information about organized health camp for cattle for

vaccination, artificial insemination for high breeds etc
Information is collected in order to know how successfully it is

working and its act9ivities conducted.
• Supply of feed and fodder: -
Supply of feed and fodder to farmers at subsidized rate like seeds

and sampling and some of these at free of cost. Hence the data about this
is collected and further processed into information.
• Training Facilities: -
Information about training facilities for societies, staff and also for
producers is also collected.
• As the above information is collected by field officers

called “Extension Officers” in the first week of every month is
submitted and this information is compiled and reports are
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formed and submitted to KMF. This forms the primary and

external source of data, which compiled processes into useful
information
• Internal Source of Information: -
Information from different department and divisions and sections are

collected. The different sections are
• Marketing Sections: - information about sales proceeds, sales

promotions, product line, demand and supply, competition, market trend
etc. and about other marketing activities is being reported to MIS.
• Products Section: - The information about deferent products

manufactured, this production, different types, quality, supply to the
market, their price etc. is being reported to MIS.
• Procurement & Input Section: - The information about the

procurement of the raw-materials and inputs for production will be
reported to MIS.
• Quality Control: - Information about the quality control

techniques being adopted, its success, etc. is being reported to MIS.
• Production Sections: - Information about the cost of

production, turn over/day, purchase, sale, etc. machinery and its working
conditions, etc is being reported to MIS.
• Finance Section: - Information about annual report, balance

sheet, income statement, bills, receipts etc. is being reported to MIS.
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• Administrative Sections/HRM: - The information about

employees like appraisal reports, number of employees, attendance, salary,
promotions, welfare activities, etc. is being reported to MIS.
Hence all these sections submit these reports to MIS department and
MIS department stores and cater to the information to the board as and
when needed by the board decision-making and keep them well informed.
2. Secondary Sources: -
The secondary source refers to the already processed information

and this is collected through the government documents, survey reports,
animal husbandry department, etc.
Management of Information System: -
MIS manages its function through the implementation of Windows

2000 D2k (Developer 2000) which is used as front end, and  Oracle as
backend. In addition it implemented 2 packages.
a) Milk billing package.
b) Sales accounting and payroll.
The whole packages are implemented through ERP module i.e.

(Enterprise Resources Planning).
The whole processing is done through the networking, which is

pertained only within MIS section. The process is under program for
implementing the network throughout the organization.
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Chapter-5
FINANCE AND ACCOUNTS DEPARTMENT
FINANCE & ACCOUNTS TEAM
Manager (Finance)
Dy Manager
Asst Manager
Ac. Officer
Suptd
Ac.A-1
Ac.A-2
Ac.A-3
Helpers
Ac.A= Account Assistants
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Introduction: -
Finance is regarded as the lifeblood of the business enterprise.

Efficient financial management is very important to any organization. Lack
of this paralyses the activities of the firm. Hence, it is essential to have a
sound financial system organized in an organization or enterprise. Every
organization needs money and the management of it is very important in
any financial system of an organization.
BAMUL has a very sound financial department and well trained and
experienced employees to carry out the financial activities. Here very small
to big activities are carried out with utmost care.
Objectives: -
The objectives of financial department are as under: -
• To ensure that accounting records of various division are properly

maintained.
• To ensure that sales realization are properly accounted and remained

the marketing section from time-time over the debtors portion in
order to enable them to collect the dues.
• The account section objective is also to see that regular payments of

milk bill are made to milk producers on priority.
• To see that the payments to creditors are made within stipulated

time.
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• Account section has to provide management timely information

about the financial position of the union and guide them as to
viability of the proposals that come in the course of business
activity.
• The other objective of finance section is to keep the management /

board appraised of monthly treading and P/I figures.
• To include timely submission of financial statements to auditors and

ensure smooth audit is conducted and give audit reports to
management.
• To make cost evaluation and caution management where ever the

cost exceeds the norms.
Functions: -
The main functions of financial department are as under: -
1. To manage cash.
2. To mage bills.
3. To manage transportation bills.
4. To manage pay bills.
5. To manage accounts.
6. Prepare IBP.
7. File IT returns and other statements returns.
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The details of each function are as under:
1. Cash: -
There are two cash counters in the financial section,
I) Collection of sales proceeds counter.
II) Cash counter.
I) Collection of sales proceeds counter: -
This is for cash collection of sales proceeds of milk and milk

products. Cash remitted by challen system from various milk distribution
roots 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.
II) Cash counter: -
Another cash counter is for handling impressed cash and cheques.

Impressed cash means amount required for meeting various payments.
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 and 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 receipt are
Surana college 45
being passed in this cash section. All these transactions of receipt and
payments are entered into computer and cash book entry is also being
made in computers. The union uses 7.2 Version Tally Package.
2. 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 computer.
3. Transportation Bills: -
Following are the types of transportation bills:
i) Procurement Transportation Bills (PTC)

ii) Distribution Transportation Bills (DTC)
iii) Mobile veterinary root bills
iv) Cattle feed transportation bills
v) LN2 transportation bills (Liquid Nitrogen)
vi) Hire vehicle transportation bills
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All these above bills are received from different user section once in
a fortnight, duly certified for having hired the vehicle for the purpose of
milk procurement, distribution, mobile veterinary service; cattle feed
transportation, transportation of milk to other dairies in hired transportation
tankers. All these bills are duly scrutinized in account section in different
aspects such as correction of the distance, deduction towards TDS, any
other recoveries and / or passed for payment through cheques. Since these
bills are in No.; once in a fortnight for total amount of payment is made to
their bank accounts.
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 where employees
avail loans through cheques. The account section prepares salary
Surana college 47
deduction statements for deductions under various heads cited above and
these deductions are generated in computer itself when salary bills are
prepared. Specimens of salary bill and deduction statements are enclosed.
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.
Some times they even get grants from the government.
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Share Capital (in Lakh Rupees)
ShareCapital (inLakhRupees)
1200
1000
800
ShareCapital (in
600
LakhRupees)
400
200
0
5
5
-9
-9
-9
-0
-0
-0
8
4
4
2
9
0
9
0
9
0
1
Annual Turn-over (in Lakh Rupees)
Annual Turn-over (inLakhRupees)
35000
30000
25000
20000 Annual Turn-over
15000 (in LakhRupees)
10000
5000
0
5
5
-9
-9
-9
-0
-0
-0
4
4
9
0
9
0
1
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Net Profit (in Lakh Rupees)

Net Profit (inLakhRupees)
300
250
200
Net Profit (inLakh
150
Rupees)
100
50
0
5
5
-9
-9
-9
-0
-0
-0
4
4
9
0
9
0
1
Ratios at Glance
1999- 2000- 2001- 2002- 2003-
Ratios 2000 2001 2002 2003 2004
Current Ratio 1.97:1 1.91:1 1.67:1 1.66:1 1.41:1
Quick Ratio 1.55:1 1.27:1 1.25:1 1.35:1 1.13:1
Inventory to Working
Capital 42.20% 70.27% 62.20% 46.89%
Debt equity 2.04:1 2.63:1 2.79:1 2.38:1 1.75:1
Fixed Asset to new
worth 0.68:1 2.92:1 2.96:1 2.69:1
Current Liability to
Networth 0.69:1 0.73:1 0.89:1 0.76:1
Solvency Ratio 1.83:1 1.66:1 1.27:1 1.32:1
Working Capital
Turnover 16.5 T 16.8 T 19.75 T 22.68 T
Stock Turnover 49.80 T 34.0 T 15.19 T 27.63 T 59.61 T
Debtors Turnover 77 T 88.7 T 195.49 T 159.4 T
6.71
Debt Collection Period 4.7 days 4.1 days 1.87 days 2.30 days days
Cash Turnover 18.0 T 22.9 T 21.79 T 18.70 T
31.7 20.91
Debt Payment Period 29.8 days days days 23.5 days
Net Profit Ratio 1.05% 0.44% 0.15% 0.90% 1.37%
Operating Ratio 98.58% 99.04% 101.15% 99.19% 98.63%
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CHAPTER-6
PRODUCTION DEPARTMENT
The Bangalore Milk Union is mainly concerned with production of

milk and other by-products such as curds, butter milk, ghee, peda and
butter. The Production of other by-products is taken care by a separate
department brown as product department and production of milk and curd
is taken core by production department.
Hierarchy (production department)
Manager
Dept Manager
Asst Manager
Technical Officers
Supervisors
Technicians
Helpers
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Functions: -
The functions of production department are as follows: -
1) Procurement of raw material.
2) Maintain and produce the standard quality products.
3) Using of advanced technology.
4) Produce zero bacteria milk.
5) Maintaining inventory of both raw material and finished products.
6) Produce different quality of products to meet the market needs and
wants.
Types of Products Produced: -

There are 5 main products produced. They are:-
1) Milk:
 Toned milk,
 Double toned milk,
 Full cream milk.
2) Peda
3) Ghee
4) Masala butter milk
5) Curds
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PROCESS FLOW CHART FOR MASALA BUTTER MILK

PRODUCTION & PACKING: -
1) Curd in Can
2) Mixing thoroughly using s plunger
3) Adding of pasteurized water
4) Addition of Masala item to arrive desired taste
5) Filtration to eliminate extraneous / ungrounded Masala fibers
6) Transferring to intermediate tank for packing
7) Packing 200ml size
8) Storing in crates
9) Transferring to cold store immediately
10) Dispatch as per market indent.
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PROCESS FLOW CHART FOR CURD PRODUCTION &
PACKING: -
1. Drawing of Pasteurized toned milk from production to vat
2. Heating to 32 – 35 C with hot water circulation with slow agitation
3. Addition of starter culture and mixing well
4. Pumping to intermediate tank
5. Packing in different pack size
6. Filling to crates
7. Allowing 5 – 6 hours for formation / incubation
8. Observation for formation
9. Transferring in cold store
10.Dispatch as per market indent
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PROCESS FLOW CHART FOR PEDA MAKING AND PACKING: -
1. Collection of good raw milk in cans
2. Transferring to Khoa pan
3. Evaporation of moisture in milk with steam with continuous stirring
4. Adding sugar at the stage of milk solids turning to semi solid state
(phase) and thorough mixing
5. Transferring of obtained product into S.S. Trey
6. Allowing to cool over night in cage
7. Dyeing upon working the product for proper granulation into 25 gms
pieces using S.S. Peda dye
8. Transferring of pieces to laminated carton box of 10 pieces capacity
after putting liner
9. Ceiling with cellophane tapes and statutory stamping
10.Dispatch against marketing indent
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PROCESS FLOW CHART FOR GHEE MAKING AND PACKING
1. Raw butter to melting vat
2. Pumping of melted butter to ghee boiler
3. Cooking of butter fall up to 118-120 C
4. Holding at above temperature for 10-15 minutes
5. Cooling with raw water to bring down the temperature to 75-80 C
6. pumping to ghee settling tank
7. Allowing for natural cooling and setting of about 10-12 hours
8. Packing at 40-45 C in different pack sizes
9. Storage in corrugated boxes / tins upon sealing
10.Dispatch against marketing indent
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CHAPTER-7
PROCUREMENT AND INPUT DEPARTMENT
Introduction: -
The daily average milk procurement of BAMUL for the period of
2005-06 (till Dec 2005) was 8.29 lakh Kgs, which works out to be 535 Kgs
per day per DCSs. During the year the milk procurement touched a peak of
8.95 lakh kgs per day. In Milk procurement, Bangalore Milk Union stands
first in Karnataka and sixth position in the country.
The important activities apart from milk procurement of the P&I
dept in BAMUL include:
Input activities:
 Providing feeds and fodder to farmers at concessional rates.
 Teaching the importance of animal health to farmers and giving
them medical benefits for their animals.
 Special emphasis on organizing Infertility Camps in all the DCS.
 Support to Training and Employment Programs (STEP).
 F.M.D Vaccination Program.
BAMUL 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. 9.83 for every ltr of milk
supplied to the Union, which is 72% of the total cost of Production. Milk
collected at DCS will be transported to Chilling Centers, through 93 Milk
Procurement Routes are also in operation, which collects milk from 35
Surana college 57
BMC centers of 68 DCS directly transported to Bangalore Dairy through

insulated tankers.
Hierarchy (Procurement and Input):
Manager (P&I)
Dy manager
Asst manager
E.O-1
E.O-2
E.O-3
A.A-1
A.A-2
A.A-3
Peon
E.O=Extension Officer
A.A=Administrative Assistant
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Cost consumption at BAMUL;
Transportation 4%
Process 5%
Packing 3%
Retail margin 3%
Sales & administration 6%
Miscellaneous 5%
Int & bank charges 2%
Milk purchase 72%
80%
70%
60%
50%
40% Series1
30%
20%
10%
0%
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In
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S
Surana college 59
Milk Procurement (Avg. Kgs/Day)

Year Milk Produced
1995-96 351799
1996-97 394546
1997-98 404603
1998-99 424483
1999-2000 496732
2000-01 532948
2001-02 546941
2002-03 557819
2003-04 594073
2004-05 713029
2005-06 828612
M ilk Pr o d u c e d
900000
800000
700000
600000
500000
M ilk Pr o d u c e d
400000
300000
200000
100000
0
19 6
19 8
19 -99
20 1
20 2
19 7
20 3
20 4
20 5
-06
20 0
-9
-9
-9
-0
-0
-0
-0
-0
0
-20
95
96
97
98
00
01
02
03
04
05
19
99
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CHAPTER-8
QUALITY CONTROL
Introduction: -
BAMUL has a very good and an extensive quality control

department. The main aim is to produce milk bacteria free and prevent
adulteration of milk. It also focuses on producing proper quality milk with
proper quality of fits and proteins needed
Quality Policy: -
The quality policy of BAMUL is, “Collection of pure milk from

Bangalore Milk Union Members and Testing Scientifically and Providing
Fresh & Pure Milk to consumers with Associated Milk Products with
Competitive Prices and Best Services”
Objectives: -
1. Strict adherence to specifications with emphasis on defect

prevention, use of raw materials, control over each stage of
operation.
2. Involvement of personnel from all functions at all levels for
development and maintenance of quality system CIP is adopted.
3. Planned & systematic programs for acquiring sales during the
operation in order to ensure standard quality.
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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 mi8lk 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.
KMF has established a research and development center. It conducts

produce development and continued quality improvement programs.
Hierarchy of quality control as under: -
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Hierarchy (Quality Control)
Manager (Q.C)
Dy Manager
Asst Manager
T.O
Chemist-1
Chemist-2
Chemist-3
Helpers
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Quality Control Techniques Adopted: -
The various tests conducted in order to maintain the quality of milk

are as under: -
1. Garber Test: - To know the fat content present in the milk. It is
mixed with sulphuric acid. (MILK + H2SO4)

2. Milk Test: - To know the fact content present in the milk through
electronic device.
3. Lactometer: - To know the stability of the milk and is conducted by
mixing the milk with water and using lactometer, stability is tested.
If milk water quantity is more in the milk the lactometer will
immerse inside.
 MBRT test and methylene blue radiatic Test.
 Acidity Test.
 PFA Test and Prevention of food Adulteration Test.
Inspection & Testing: -
Each individual co-operator is trained for instructed well before the

individual co-operator commences his routine work of production. The
supervisor inspects the routine work personally.
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CHAPTER-9
PURCHASE DEPARTMENT
Introduction: -
In every organization success is mainly depending upon the

efficiency of the purchase department. This is due to the fact that, every
organization requires materials during its functioning. Hence, purchase
department fulfill all the materials needed for each and every departments
in an organization.
Objectives: -
• To procure right materials

• In right qualities
• In right quantities
• From right and reliable sources of supplies
• To procure materials economically i.e., at reasonable price
• To secure and deliver materials at right placers and at right time.
Purchase department has to perform certain activities, duties and
function in order to achieve the objects mentioned above.
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Duties and responsibilities of the purchase department –
• To keep records indicating possible materials and their substitutes

• Maintenance of relevant records of reliable sources of supplies, price
materials
• Making contracts with right sources of supplies
• Analyzing / evaluation of offers / quotations to procure the materials
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CHAPTER-10
STORES DEPARTMENT
The stores department acts as a cushion against every need on an

organization, mainly at the time of break-down of machinery in the process
of working, production and maintenance by supplying the needed items
like necessary equipments / spares etc., specially required materials will be
maintained as stand-by materials as buffer stock or safety stock.
The co-operative auditor makes the stock verification from time to

time. To fulfill this obligation 5 years records will be maintained, and more
than 5 years is also considered as slow – moving items. Finally, there is a
proposed to reduce the inventory from present 2000-2500 items.
The stores department of BAMUL; is divided into 5 sub-divisions as

follows:
• Spares and machinery
• Consumable stores
• Transport stores
• Stationery stores
• Unserviceable stores
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The above 5 stores are called BAMUL stores. Each consists of 1

superintended. 1 storekeeper and 2 clerks and 2 helpers. These 5
departments are working for processing and packaging of the milk and
distribution etc.
Hierarchy (Stores)
Manager (Stores)
Dy Manager
Asst Manager
Supervisors
Storekeepers
Clerks
Helpers
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The responsibilities of the above – mentioned divisions are as follows:
I. Spares and machinery stores contains maintenance spare and related

items.
II. Consumable stores contains packing materials and consumable like
washing soda, sugar etc.,
III. Transport division contains vehicle spare parts.
IV. Stationery store contains stationery, furniture, fixtures registers for
record keeping, books, etc.,
V. An unserviceable store contains oil, lubricants and disposable items.
VI. P&I wind stores contains drugs and DCS materials.
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CHAPTER-11
SWOT Analysis
SWOT Analysis refers to analysis of “Strength, Weakness,

Opportunities, and Threats”, possessed and faced by an Organization.
Strength of BAMUL: -
a) Strong customer base:

BAMUL enjoys a very strong “customer base” in their domestic
market. Products manufactured by BAMUL are known for their
quality, quality perception of customers regarding BAMUL’s
products has earned them a very strong customer base. They have
captured almost 70% of the market share in the domestic market.
b) Strong supplier base:
Its early inception BAMUL has provided it an opportunity to build
up a very strong “supplier base”, since there were almost no
organized major players in the domestic market.
BAMUL is playing a vital role in the district by covering 2611
villages of Bangalore District for their dairy activities.
The total members for various societies are 3,16,400. It has 1548
societies for their procurement purpose. In these 90% of societies are
running under profit among these above societies.
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c) Competitive Product line:

Products offered by BAMUL are only one of its kinds in the
domestic market; its competitors have only a few substitutes to offer
in terms of variants and quality of products.
Product line of BAMUL consists of

 Purified liquid milk
 Peda
 Kova
 Curds
 Butter and butter milk
 Masala butter milk
 Ghee
d) Automated Production:
BAMUL has an automated production process; it helps them to
drastically reduce the cost of production per unit due to High-end
technology production process.
Weakness of BAMUL:
The only weakness suffered by BAMUL is dearth of professionals in

its organization. Personnel at BAMUL have not been trained
professionally in core management areas such as “Marketing, Human
Resource, Finance, etc”, to provide a competitive edge to the organization.
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Opportunities for BAMUL:
BAMUL can explore other avenues of Dairy farming (Honey

Culture), since it already has a strong supplier base. It can train suppliers in
“Honey culturing”, and later market the new product “Honey” under its
own brand name “Nandini”, since it has its own value and customer
perception. In the domestic market Honey available is provided by
Companies such as “Dabur”, so Nandini could be made available at a
cheaper rate owing to lesser Cost of Production. Major market share could
be obtained since Nandini, the brand name is well known in the local
market.
Threats faced by BAMUL:
Competitors of BAMUL have started to access the supplier base of

BAMUL by offering more prices and have been successful in luring some
of the farmers in to give the milk, it is the one threat faced by BAMUL.
Surana college 72
FINDINGS
Findings of the study: -
Following are the findings during the study: -

 BAMUL is serving the rural region and helping for their upliftment,
by way of procuring milk through poor farmers through its formed
societies and paying them fair returns. It is contributing for
economic upliftment of farmers.
 BAMUL is even serving the society and its customer by providing
better quality milk and milk products.
 BAMUL is earning profit year after year and it is not confronting
any financial problems.
 BAMUL is equipped with fully automatic systems which ensures
total quality maintenance (function)
 It has got its own quality control department with fully equipped
laboratory and equipments that help detecting any adulteration or
any such other defects.
 Through the use of advanced technology, BAMUL provides its
customers bacteria free and balance nutritious milk (product
augmentation)
 BAMUL provides training and education programme that creates
legal awareness about social and economic upliftment among rural
people, especially women.
Surana college 73
 The whole system is so equipped automatically, that more hygiene is

maintained in preparing the milk and milk products.
CONCLUSION
BAMUL, which refers to Bangalore Milk Union Limited, is playing

vital role in serving the rural class and contributing for the economic
upliftment of farmers. It is helping the farmers by giving them all facilities
to rear their cattle by supplying fodder and feed, improving the breed by
artificial insemination with the help of their veterinary services.
BAMUL is reaping profit by equipping the latest technology and

producing better quality products. It is serving the best quality milk and
milk products to its customers, thereby maintaining their top position in the
market. It has atomized manufacturing and every process is computerized.
In other words through atomization it has achieved great success and a
good recognition.
It has its own quality control division with all quality control devices
and techniques which has helped it in maintaining its standard quality.
Hence BAMUL is not only helping the rural society but is also
catering the urban region by providing its products to all ages supplying
milk to look and corner of Bangalore district.
Surana college 74

A On The Organizational System and Organizational Progress of Bangalore Milk Union LTD (BAMUL)

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A On The Organizational System and Organizational Progress of Bangalore Milk Union LTD (BAMUL)

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An Organizational study at BAMUL

Submitted for the partial fulfillment of

Under the esteemed guidance of

The satisfaction that accompanies the successful completion of any

I consider it as my privilege to express through this report a few

I sincerely thank Prof. H. Appannayya, coordinator,M.B.A.

This has been a great learning opportunity for me and I am highly

5. FINANCE & ACCOUNTS DEPT

7. PROCUREMENT & INPUT DEPT

10. STORE DEPT

11. SWOT ANALYSIS

BANGALORE MILK UNION LIMITED:-

Bangalore milk union (BAMUL) is a biggest Co-operative Milk

(KDDC) in December 1975. As a pert of Rural Milk Scheme of Mysore,

The Bangalore Urban and Rural District Milk Producers

As per the policies of the National Dairy Development Board

BAMUL has been registered under MMPO by Central Registration

The philosophy of this co-operative milk producers organization is

The member producers and there Dairy Co-operative Societies

The union is making concerted efforts over the years to organize

Year Functioning DCS

Importance is given to enroll more and more producers in the

The daily average milk procurement of BAMUL for the period of

BAMUL is offering the most remunerative milk procurement price to

Milk collected at DCS will be transported to Chilling Centers,

Milk Purchase 72%

OBJECTIVES OF THE UNION:-

• To organize Dairy Co-operative Societies at village level and

The formal principle of the Bangalore Milk Union is bound to get

• To help its member associations financially and socially and to

• To adopt modern technology.

“Ushering rural property in the lives of members of milk producers.”

Mile Stones of BAMUL:

• Bangalore Co-Operative Milk Producers Societies Union Ltd was

KMF units in Karnataka:

LIST OF CO-OPERATIVE MILK PRODUCERS SOCIETIES

Operational areas of BAMUL:-

BAMUL is playing a vital role in the district by covering 2037

The BAMUL has 7 chilling centers in the district. They are:

Capacity of the Main Dairy:-

• Milk processing capacity was 60,000 liter per day (LPD) at

Flesh season means where there is availability of grass and feed in

BAMUL mainly does purified milk and milk products. The

BAMUL has 400 employees currently working in the organization.

Marketing management in the analysis, planning, implementing and

MILK AND MILK PRODUCTS MARKETING

Objectives of Marketing Department

1. To capture the markets share.

Market Share of BAMUL:-

60-70% of market share- Nandini.

Marketing Strategies adopted by BAMUL

• Organizing meeting:- Organizing meetings is important public

• Visit to Non-Govt. Organizations:- Visiting to NGOs and creating

• Visit of school children to the dairy and promoting their products

• 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,

• It seals its product under the brand name “NANDINI”

Retailers T.C.D W.S.D

Next planned products to be introduced are Lassi and Paneer.

Marketing & Sales of BAMUL at a glance

Number of Distribution Routes 147