Documente Academic
Documente Profesional
Documente Cultură
Chapter - 1 INTRODUCTION
ANNEXURE
BIBLIOGRAPHY
LIST OF TABLES
The ‘Indian dairy industry has made rapid progress since independence .a large number of
modern milk and milk produts 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 nation’s food & agriculture
organization (FAO)’.
Milk is an important &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” & milk as “Amrutha” in
Vedic version. Milk is having immeasurable value in use, which has been explained in many
slokas Vedas. Upanishads & puranas
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 & Child Care”, states
milk contains almost all the food elements that a human being needs protein, fat, sugar, minerals
& most of Vitamins, milk is the only food contains a lot of calcium.
The study consists of two folded objectives i.e. main objectives and additional objectives. The
main objective is to acquire practical knowledge about Raichur Bellary & Koppal milk union.
The additional objectives are e as follows:
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
1200 BC 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 by
Americans. Grim ode’s British patent for producing dried milk was issued 1855. But large
production of dried milk did not being until 50 years.
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 18 th
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.
Milk may be defined as the whole fresh, clean, lacteal secretion obtained by the complete
milking of one or more healthy milch animals (cow, buffalos). Milk is the only food, which is
designed by nature solely as a food. It serves as the foundation of an adequate diet. As milk
Contains protein, vitamin and fats, it is very important for pregnant mothers, growing children,
adolescent, adult, convalescents and patients alike. In the 20th venture the diary.
As of now, ethnic dairy products account for 90 per cent of all dairy products consumed
in India, according to Mr P.R. Gupta, Editor, and Technology of Indian Milk Products.
A Dairy India publication, this handbook on process technology modernisation has been
authored by dairy professionals such as Dr R.P. Aneja, former Managing Director of National
Dairy Development Board (NDDB) and President of the Indian Dairy Association; Dr B.N.
Mathur, Director, National Dairy Research Institute, Karnal; Dr R.C. Chandan, President of
Global Technologies Inc; and Mr A.K. Banerjee, Dairy Consultant and former Managing
Director of the Bihar State Dairy Corporation.
Over the last two decades, 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, mishti doi, dahi and lassi.
While established names in the Indian dairy 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.
NDDB’s Perspective Plan 2010, developed in consultation with the 126 identified
cooperative milk unions and covering four thrust areas-strengthening the cooperative business,
enhancing productivity, managing quality and building a national information network-aims to
professionalise the working of dairy cooperatives in the emerging liberalized business
environment.
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 Cooperatives (EWIC) have encouraged women to organize thrift groups
and take up 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.9.88 crore.
About 75 per cent of this amount is being utilized to service the credit needs of members.
Richer, Bellary & Koppal Districts Co-operative Milk Producers' Societies Union Ltd.,
Was established in the year 1989 under the Operation Flood II covering three districts viz.
Raichur, Bellary & Koppal. It has a dairy plant at Bellary with a capacity The Union was
established in the year 1989 under the Operation Flood II covering three districts viz. Raichur,
Bellary & Koppal. It has a dairy plant at Bellary with a capacity of 30,000 Litres per day and a
20,000 Litres per day plant at Raichur.
It has four Chilling Centers at Gangavati, Dadesagur, Ittigi, Kustagi and Kudligi with
total chilling capacity of 0.45 Lakh Litres per day. There 5 Bulk Milk Coolers in the Union.
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
According to conduction of “operation flood” in Karnataka, Karnataka co-operative milk
board started working for the dairy development from 1/4/1985.the Raichur and Bellary milk
products co-operative society was registered in 12-12-1989.in recent days it also includes Koppal
district. Present the union is known as Raichur, Bellary and Koppal milk union.
The Union procures on an average of 0.51 Lakh Kgs.per day of milk and sells 0.42 Lakh liters
per day. Apart from selling milk it also produces Ghee, Curd, Lassi, Butter Milk and Peda. The
Union is also procuring Buffaloe milk separately and marketing Buffaloe milk under the brand
name "SHUBHAM".
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.
• To increase the present sales of milk from 55,000 liters to 75,000 liters and increase the
milk dealers from 415 to530.
• Regarding supply of toned, double toned and shubam to all the cities according to
consumer needs.
• To increase the collection of milk from the existing each 131 liters to 160 liters per DCS
• To increase the supply of cattle feed to the maximum extent at the reasonable rate to the
members of dairy co-operative society
ACHIEVEMENTS:
• They are able to procure milk from 13 taluks as which are covering those 3 districts and
also selling the milk in all these taluks and towns
• Under the program of ‘National Dairy Development Board, to reduce the environment
pollution and to newly smokeless stoves to selected societies
• Union is conducting training programs to employees, union members, society members
etc. for implementation of modern technology periodically
• With the help of state and central government union are able to provide loans to the
SC/ST members of co-operative societies for their development.
VISION OF RBKMUL:
RBKMUL Provides Technical support to its Co-operative societies and procuring good
quality of milk from DCS provide better price for milk producers (farmers) and provide good
quality of milk & its products to satisfy its customers in order to maintain & improve the
economical status of the organization.
MISSION OF RBKUL:
“The goodness for generations”. RBKMUL wanted to grow its business for generations
providing good quality of milk to consumers and better services.
Discipline
Responsibility
Hard work
Honesty
Quality
Team work and
Openness
INFRASTRUCTURE DEVELOPMENT
Under animal health programme more emphasis will be given for mastitis control. SAAF
Kit will to all the (BPL families & others) milk producers.
All the producer member need balanced cattle feed for their milch 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 Go down facilities, as it require huge investment. Hence Milk
union proposes to construct cattle feed go downs at each CC/BMC premises so that sufficient
quantity of cattle feed can be Stocked 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.
Raichur, Bellary and Koppal District Co-operative Milk Union are Having One Main Dairy at
Bellary and Three Chilling Centers and Two Bulk Milk coolers. The details are as under:
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 co-operatives 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,
The organizations present status is given in the e different headings, viz, milk
procurement, milk sales, administration development, area of operation etc
The organization milk procurement increases ever year. The year 2007-08 & 2008-09 are given
in the table 2.1
Table 2.1
Year wise milk procurement
YEAR AVERAGE MILK
PROCUREMENT/DAY in (kgs)
2007-08 42,263
2008-09 50,847
Source: company Annual reports
The growth of milk procurement of the organization is given in the table 2.2
Table 2.2
Year wise milk procurement growth rate
YEAR AVG MILK PROCUREMENT
GROWTH RATE IN %
2007-08 20
2008-09 30
Source: company annual reports
Table 2.3
Details of milk sales
YEAR AVG SALE OF MILK IN
LITERS/DAY (in liters)
2006-07 40,538
2007-08 42,542
2008-09 55000
Source: company annual reports
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 45days have been released in
retail packs
Table 2.5
Profitability of the organization
YEAR AMOUNT (in lakhs)
2005-06 36.50
2006-07 (62.24)
2007-08 26.73
2008-09 47
Source: company annual report
(vi)MILK COLLECTION:
In 2008-09 the organization collected milk 52,433 kgs from 351 societies.
(xi)ADMINISTRATIVE IMPROVEMENTS:
The administration improvements are as follows
• Produce pure milk
• Excess milk will be send to Dharwad for conversion
• Commission to Agent increased to 20 paise to 50 paise per liter.
• The capacity of Bellary Dairy increased from 30,000 to 40,000.
The chilling center and its capacity are given in the table 2.6
Table 2.6
Details about chilling center and capacity of milk.
AREA OF OPERATION
The organization operates the business in three districts. The district wise details are given in the
table 2.7, 2.8, and 2.9
Table 2.7
Details about Raichur district
RAICHUR REGISTERED NO.OF MILK
DIST SOCIETY FUNCTIONAL COLLECTION IN
SOCIETY KGS (PER DAY)
RAICHUR 19 03 491
MANVI 42 25 5566
SINDHANOOR 86 42 13225
DEO DURGA 06 00
LINGASAGUR 01 01 1682
TOTAL 154 71 19450
Source: company annual report
Table 2.8
Details of Bellary district
BELLARY REGISTERED NO.OF MILK
DIST SOCIETY FUNCTIONAL COLLECTION
SOCIETY KGS (PERDAY)
BELLARY 56 22 4069
SIRUGUPPA 62 25 2283
Table 2.9
Details about Koppal district:
KOPPAL DIST REGISTERED NO.OF MILK
SOCIETY FUNCTIONAL COLLECTION IN
SOCIETY KGS (PER DAY)
KOPPAL 32 14 1743
GANGAVATHI 61 37 9741
YALBURGA 26 16 1173
KUSTIGI 17 02 101
TOTAL 136 69 12758
Source: company annual report
After the closure of OF-III project. Government of Karnataka and NDDB signed an MOU
during February 2000, for further strengthening the Dairy Development Activities in Karnataka
with an outlay of Rs.250 Crores. Consequent to the announcement of new lending terms and
conditions by NDDB through an evolution of an action plan - Perspective 2010 to enable the
dairy cooperatives 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
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 Govt. of Karnataka through KMF has proposed to undertake several projects
with financial and technical support of NDDB for which an MOU was signed between Govt. of
Karnataka and NDDB on 10th Nov. 20
Managing director
Dairy Worker
Asst manger Worker Worker Asst
Supervisor
Extension
Junior technician Worker
Officer
Worker Workers
STRENGTHS: -
WEAKNESS: -
OPPORTUNITIES: -
THREATS: -
CHAPTER: III
DETAILED STUDY OF THE DEPARTMENTS
1) Purchase department
2) Procurement & Input department
3) Production department
4) Administration department
5) Finance department
6) Marketing department
Purchasing is a managerial activity that goes beyond the simple act of buying and 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.
Benefits
Round the year, market to milk produced
SERVICES:
• MPCS bears all charges of any diseases to the cattle includes medicine &
Transportation charge
• The fee for doctor 75/per- animal visit
• Once in three months they conduct annual treatment health camps in societies
Free of cost
Fro example: - pregency test
VACINATION WORK
TRANING PROGRAMES:-
• President tanning
• Managing committee member training
• Training to the societies secretary
• Training to the milk tester (bitrometer)
• Dairy animal management training to the milk producers
• On plant training in AMUL (gurjat)
Chart 3.1
Manger
P&I
Extension
Officers
TARGET GROUP
The target group to be covered under STEP program include marginalized asset less rural
women and urban poor. This includes wage labourer, unpaid daily worker, female headed house-
holds, migrant tribal and other dispossessed group
IMPLEEMENTING AGENCY
The Ministry of Human Resource Development, Department of Women and Child
Development, Government of India has sanctioned 3 STEP Projects each having 3 year duration
for implementation in Karnataka. The financial outlay is as follows:
The project area covers all the 27 districts of Karnataka State coming under the jurisdiction of 13
District Milk Unions under the project area of KMF
AWARENEES PROGRAME
The ultimate objective of the project is to develop women group to be self-reliant on self-
sustaining basis with the minimal Government support and intervention after the project period is
over
The unit of Raichur, Bellary and Koppal consists of all high level technological
processing equipments.
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 2008-2009 is 42,542 liters, which has been increasing by leaps
over the years. This is all too good technological equipments.
Table 3.1
Year wise procurement and sales
YEAR PROCUREMENT SALES
HTST Pastuerisors
(High temperature in short time)
Cream separator
Standardization
Packing machine
Dispatch
Market
Table 3.2
PRODUCT MIX
• Quality is the main priority of this union. So some of the quality checks equipments used
all.
• Centrifuged machine for fat testing.
• Milk-O-tester for fat CHECKING.
• Corrected lactometer for SNF testing.
CHEMECAL TEST
Spirit lamp used in (elot on boiling test) which is conducted to study adulterants.
Lila sugar, stera, neutralizer.
PACKING TECHNOLOGY
Local milkman initially sold milk door-to-door. When the dairy co-operatives initially
started with foil. Over the years, several developments in packaging media have taken place in
the early 80’s, plastic pouches replaced the bottles. Plastic pouches made transportation and
storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a
shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra packs were introduced in
India. Tetra packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk
stored in tetra packs and treated under ultra High temperature (UTH) TECHNIQUE CAN BE
STORED FOR MONTHS WITHOUT REFRIGERATIION
CHART 3.3
DEPUTY MANGER
DAIRY
Asst manger
Dairy technology Asst manger
Engineering
Technician
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 & regulation.
APPOINTMENT PROCEDURE
ALLOWANCE:
The organization provides various allowances to their employees. The allowances are shift
allowances. The details are given in table 3.3, 3.4
SHIFT ALLOWANCES
Table 3.4
Details about other allowance
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.
MEDICAL FACILITES: - ESI coverage for employees –under ESI providing in patient
amount of Rs. 5,000/-per annum.
Conveyance allowance:
For the employees who are maintaining car they are providing Rs 550/per month & for motor
cycle above 100cc Rs .350, vehicle below 50 cc Rs. 150 /moth & for other 100 /month.
Uniform:
All the male employees are provide 1 pair uniform once in a year & all female employees are
provided 2 sarees & 2 blouses once in a 2 years.
All the employee are provided 1 kg of ghee for notified festival at free of cost
(ganesh chaturthi & ugadhi)
Gratuity:
As per the gratuity act gratuity is paid as per the subsidiary rule. The major financial
strength for milk dairy is national development dairy Board (NDDB)
RECREATION FACILITIES
A recreation facility to reduce tension of work and helps to relax for some times. Two time
tea daily for permanent employees
Lunch:
Permanent employee Rs 1.50/-per ay
Contract labor Rs 3.00/-per day
Others Rs 7.00/-per day
Superintend
Asst superintendent
Stenographer
Typist
• Control of finance.
• Monitoring of funds & investment of surplus funds generated on the account of
operational profits.
• Coordinating with member Milk unions for providing funds & payment of supply bills in
time to avoid cash crunch at the Milk unions.
• Preparation of consolidated financial statements received from member Milk unions &
the units on the monthly basis & submission of the same to the Board for its approval.
• Providing information to the Management at various levels as & when desired for
different purposes like decision making, increase & decrease in selling price of Milk &
Milk products etc…
• The federation does not have any financial management as of now & they have not
borrowed from any financial institutes/banks for the purpose of working capital expect
for infrastructural developments from National Dairy Development Board on a long term
basis ranging from 10 to 15 years at a nominal rate of 6-8%.
• Direct income on account of sale of milk & milk products at Mother Dairy.
• Certain amount of profit on sale of cattle feed by the Federation to its members Milk
Unions.
• The federation is working as an agent for the entire member Milk Unions for disposal of
its milk products whereby the federation earns 4% as service charges.
The federation & its branches have got one single consolidated registration for the
purpose of sales tax & all the Units assessments are done at Bangalore only after
consolidation.
The finance department is having six hierarchy. The hierarchy details are given in the chartn3.5
Chart 3.5
SUPERINTENDENT
ASST SUPERINTENDENT
SENIOR ASSISSTANT
JUNIOR ASSISSTANT
CASHIER
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 time, marketing
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, details are given in the table 3.3
Table 3.5
Details about price
PRODUTS PRICE TO COMMISSION MRP(RS)
DELAERS (RS)
Shubam 17.00 1.0 18.00
Toned milk 14.50 0.50 15.00
Double toned milk 13.00 1.00 14.00
PROMOTION:
They are giving advertisements in news papers. They also give ads in local channels like city
cable. For new launches they under take publicity through pamphlets
PLACES:
DAIRY----------------------DELAERS--------------------CONSUMERS.
Product Lines:
There are two types of milk
• Toned milk: It contains 3% Fat, 8.5% SNF (solid not fat) 65% half liter packets, 35%
one liter packets.
• Standardized Milk. It contains 4.5% fat, 8.5% SNF, and 100% 500 ml packets.
• Ghee : 200 ml and 500 ml packets
• Curd : 100% 500ml packets
• Peda : 250 Gm packets
• Jamoon Mix: 100 Gm packets
• Badam Powder: 100 Gm packets
Package Design:
Milk is being packed in sachets of different colors.
• Blue colour is used for toned milk. They are packing 65% half liter packets and 35% one
liter packets.
Brand policy:
Uniform brand policy all over Karnataka i.e. Nandini.
Billing:
Methods of selling:
Usually they are selling through agents. In some cases they are taking money in advanced
and giving door delivery.
Competitors:
Competitors are AROGYA, VIJAYA, KAVERI, and DURGA
PLANNING:
Preparation of annual and long-term marketing plans.
Preparation of time bound action plan in consultation with the marketing team
DISTRIBUTION:
Markets, towns covered
Appointment of distributors/retailers
Establishment of new parlors
Institutional customers
Physical stocks
Incentive and margin of retailers
Sales Promotion:
OPERATIONS:
Implementation of marketing plan
Achievements of sales targets of the union
Sales departments
REPORTING:
Reporting to the managing director.
Report on monthly/quarterly basis to KMF in consultation with MD
OTHERTASKS:
Co ordination with NDDB, KMF & other milk unions.
Co ordination with other functional departments.
Plan of action, support needed to achieve target.
STRATEGIES
Improve visibility and availability of milk Bellary, Hospet, Koppal and Raichur cities by
pole adds hoardings, wall paintings and setting up Parlours.
Assigning sales target for field officers.
Managing director
Deputy manger
(Bellary)
1) No discount scheme
2) No festival offers
3) Lack of availability
4) Lack of advertisement
5) Credit schemes are not available
6) There is no plan for expansion
5.1Suggestions:
• The Milk union should give discounts to their customers. Other wise they should allow
the customer price offer for bulk purchases.
• The union should give scratch cards, festivel offer, and special coupon schemes to their
customers for increasing the sales.
• The union should make necessary steps to availability of the milk in all places. It is very
help full to the customers in time saving.
• The union should take immediate attention to the advertisement of their products.
• The union should give some special credit schemes to their regular customers.
• The union should take steps to the expansion of the union.
5.2CONCULSION
While doing the corporate exposure and learning in RBKMUL, There have been certain
facts which are noticed. RBKMUL was setup on 1985 . For then on the federation is improving
too much. Milk production Unions, Procurement of milk & Sales of milk is increasing at good
rate. Besides, sales of curds, butter, ghee and other milk products are also increasing every year.
For increasing demand, federation has opened many new production units. Nandini milk & its
products has got almost monopoly market. Most of the consumers are satisfied with the quality,
price & so on. But the company does not concentrating too much about the advertisement. As a
result many Nandini milk consumers are not aware of Nandini milk products. So the company is
getting optimum profit rather than getting maximum profit.
ANNEXURE: II
ANNEXURE: III
IMPORTANT PHOTOGRAPHS OF THE ORGANISATION
The Chief Minister Shree: H.D. Kumaraswamy released the Nandini Homogenised Milk
containing 3.5% FAT in Bangalore On Thursday the 19th of April 2007. The Minister for Public
Works & Energy Shree: H.D. Revanna, Minister for Higher Education Shree: D.H.
Shankaramurthy and Minister for Animal Husbandry Shree: Revunaik Belamagi were present on
the occasion
BIBLIOGRAPHY
BOOKS
WEBSITES:
www.kmfnandini.coop
www.Google.com
OTHERS;
• RBKMUL Brochure
• Data provided by all the Departments of RBKMUL