Project Report On Nandini Milk

TABLE OF CONTENTS
CHAPTER
CONTENTS
Chapter - 1
INTRODUCTION
1.1
1.2
1.3
Chapter 2
Chapter 4
Chapter - 5
General Introduction
Objectives of the Study
Industrial Background of the Study
1.3. A. origin of the industry
1.3. B. growth and development of the industry
1.3. C. present status of the industry
1.3. D .Growth and Development
10
12
13
13
13
14
15
PROFILE OF THE RBKMU

2.1
2.2
2.3
2.4
2.5
2.6
Chapter 3
Page
No.
Origin of the RBKMU

Growth & Development of the RBKMU
Present status OF RBKFMU
Future plans of the RBKMU
Organization structure and organization chart
SWOT analysis of the RBKMU
18
25
26
32
33
34
DETAILED STUDY OF DEPARTMENTS

3.1 Purchase department
3.2 Procurement & input Department
3.3 Production Department
3.4 Administration Department
3.5 Finance Department
3.6 Marketing Department
STUDY OF SPECIFIC MANAGEMENT
PROBLEMS
38
39
45
50
55
60
69
CONCULSIONS AND RECOMMENDATIONS
71
ANNEXURE
BIBLIOGRAPHY
LIST OF TABLES
Sl.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Chapter
No.
II
II
II
II
II
II
II
II
II
III
III
III
III
III
Particulars
Year wise milk procurement
Year wise growth rate
Details of milk sales
Annual turnover
Profitability of the organization
Details about chilling centre
Details about Raichur district
Details about Bellary district
Details about Koppal district
Year wise milk procurement and sales
Product mix
Details about staff allowance
Details about other shift allowance
Details about price
SKNG Govt first Grade Collage Gangavathi
Page No
26
27
27
28
28
30
30
31
31
45
47
51
51
60
LIST OF CHARTS & GRAPHS

Sl.No
1
2
Chapter
No.
II
III
3
4
5
6
7
III
III
III
III
III
Particulars
Organization chart
Hierarchy of procurement & input
department
Production process
Hierarchy of production department
Hierarchy of administration department
Hierarchy finance department
Hierarchy of marketing department
Page No.
33
41
46
49
54
68
67
CHAPTER - I
INTRODUCTION
CHAPTER I
INTRODUCTION
1.1 GENERAL INTRODUCTION:
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 worlds largest milk producer that is certified by the international dairy industry .
This is the reason for the recognition of India as dairy giant by united nations food & agriculture
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.
In the period of human civilization buying and selling of milk was considered as sin. The
inner measuring if this tradition was it is the duty of each person to posses milk cattle so as to use
milk for him self & distribute to other in the society, milk & cattle was considered the wealth of
the person.
The growth of civilization, modernized way of living, development of science &
Technology. The scientific outlook of commercialization of human values changed the social
structure and there by commercial outlook towards the production & marketing of milk has
emerged.
Increased population & its growth rate in relation existing milk, animals, caused an
imbalance between the demand and supply condition of milk production and marketing of milk
has been considered a profitable business further the excess depending in agriculture
concentration of population in rural areas the nature of unemployment and underemployment
diverted the attention of the rural folk to consider milk production as a subsidiary occupation.
1.2 OBJECTIVES OF THE STUDY:The main objectives of the project are: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:
1. To study the general information about dairy industry in India.
2. To focus the swot technique application in RBKMU.
3. To discuss the elaborate details about the determinants of RBKMU.
4. To find out the problem of the organization.
5. To make suggestions to solve the problem.
1.3 INDUSTRIAL BACKGROUND OF THE STUDY

1.3. A. ORGIN OF THE INDUSTRY
Dairying is the production and marketing of milk, usually cows milk product. It includes the
case of cow of cows 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 odes British patent for producing dried milk was issued 1855. But large
production of dried milk did not being until 50 years.
1.3. B. GROWTH AND DEVELOPMENT OF THE INDUSTRY
Early man found that the goat and sheep produced enough milk for his family. As the need of
milk increased, the cow becomes established as a producer of milk in large scale. By 18th century,
the practice of selective breeding was established. It has been said that cow is machine that
converts raw materials (plant) into food in a surprisingly deficient manner. The method by which
cattle are managed in order to produce milk can be accomplished in many ways.
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.
The dairy industry is witnessing rapid changes. In search of better returns, the industry is
widening its focus to include traditional milk products, and these are emerging as new profit
centres
for
the
organised
sector.
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.
1.3. C.PRESENT STATUS OF THE INDUSTRY
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.
1.3. D FUTRE OF THE INDUSTRY

National Dairy Development Board (NDDB), an institution of national importance was
set up by the Government of India to promote, plan and organize programmes for development
of dairy and other agriculture based and allied industries along cooperative lines on an intensive
and nationwide basis.
Operation Flood (OF), an integrated dairy development Programme, completed its third phase on
April 30, 1996. The main thrust of the Programme was to consolidate the gains already achieved,
and to strengthen the dairy cooperative structure for sustainable development of the dairy
industry
in
India.
After the completion of Phase 3 of Operation Flood, a Programme Implementation

Agreement (PIA) was signed in 1997 between the EEC and the NDDB to strengthen
cooperatives at the grassroots level. Consequently, measures were initiated from September 1997
and
are
continuing
Perspective
Plan,
during
2004-05.
2010
NDDBs 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.
Strengthening
the
cooperatives
NDDBs Institution Building Programme to strengthen dairy cooperatives in aspects like

governance, management and economic viability, is being implemented in cooperative milk
unions across the country. NDDB also organized 8 training programmes during the year for milk
union personnel to enable them to facilitate these village level Institution Building programmes.
So far, about 150 union personnel have been trained. During the year 2004-05 105 board
members attended the programmes organized by NDDB to sensitize and involve the board of
10
directors
of
milk
unions
in
institution
building.
Besides increasing the enrolment of women members in DCS and spreading awareness
among rural women about health, nutrition and literacy, the activities under Enhancement of
Women Involvement in 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.
11
CHAPTER-II
PROFILE OF THE RAICHUR BELLARY
KOPPAL MILK UNION
12
CHAPTER II
PROFILE OF THE RAICHUR BELLARY KOPPAL MILK UNION
2.1 ORIGIN OF THE ORGANISATION
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".
Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex
Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third largest dairy cooperative amongst the dairy cooperatives in the country. In South India it stands first in terms of
procurement as well as sales. One of the core functions of the Federation is marketing of Milk
13
And Milk Products. The Brand '
' is the household name for Pure and Fresh milk and
milk products .KMF has 13 Milk Unions throughout the State which procure milk from Primary
Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various
Towns/Cities/Rural
markets
in
Karnataka.
Over view of the Organization:

1. Name of Company
: Raichur, Bellary & Koppal milk union Ltd
2. Address
: Bellary dairy,
Sanjay Gandhi Nagar,
Near Fire station,
Bellary-583104.
3. Year of Establishment
: 01/04/1985
4. Registration
: 12/12/1989 according to producers societies

Acts 1959.
5. Management Control
: Selected by Board of Directors
6. Product Range
: (I) milk in 2grades

a) Nandini
b) Shubam
(ii) Ghee
(iii) Peda
(iv) Jamoon
(v) Other milk related products
7. Trade marks
: Cow in oval
8. Water facility
: from municipality and own wells and bore wells
9. Share capital
: Rs82.34, 900 share capital collected from MPCS
10. Power facility
: from K.P.T.C.L power grid
11. Initial investment
cores
Under
NDDB
14
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 cooperative milk federation started working for the dairy development from
1/4/1985.the Raichur and Bellary milk producers 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.
M/S Raichur, Bellary & Koppal Milk Union LTD.,(RBKMUL) one of the
branches of KMF and the market leader in providing pure milk and milk products
to consumers. The Union of RBKMUL has its own geographical and historical
background being a high temperature place in the state the union raising its dairy
development programme. It surrounds great historical places like Hampi,
Anegundi, Hospet, Tungabhadra River, Hatti gold mines, many manganese and
iron ore mines with lots of village areas that make union easy to collect the milk
and create new co-operative society.
Dairy has played a prominent role in strengthening the rural economy; it has
played
prominent role in strengthening to bring out socio-economic
transformation by helping the landless and marginal farmers.
15
OBJECTIVES AND GOALS
To increase the present sales of milk from 55,000 liters to 75,000 liters and increase the
milk dealers from 415 to530.
To increase the sale of milk by conducting door to door survey
Information programs, consumers education programs
Consumers awareness programs, consumers dairy visit
Program, hotel owner meeting, school children program etc
To use different media for the purpose of marketing their

Product
Regarding supply of toned, double toned and shubam to all the cities according to
consumer needs.
To conduct awareness program for farmers, to enhance the production of milk.
To increase the working members from 10,900 to 18,620
To increase the member of the union to 49,000
To increase the collection of milk from the existing each 131 liters to 160 liters per DCS
To increase the supply of cattle feed to the maximum extent at the reasonable rate to the
members of dairy co-operative society
16
Milk union target is to sell 85,000 liters in next coming 3 years
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 & MISSION
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.
17
VALUES OF RBKMUL:
Discipline
Responsibility
Hard work
Honesty
Quality
Team work and
Openness
INFRASTRUCTURE DEVELOPMENT
Bulk milk coolers (BMC):
At DCS level to chill the milk, BMCs are to be installed.
BMC is a stainless steel tank attached to the chilling unit supported by Generator. The Raw milk
received at DCS level is chilled to 4 c in BMC.
Automatic Milk Collection Unit (AMCU):
AMCU includes Electronic Weighing scale, Electronic Milk-o-Tester and a computer
system with printer. Milk can be weighed, tested for quality, quantity, and accurate value without
touching by hand. The producer can be provided the details in printed form immediately with the
help of computer system. This activity will avoid the manual mearsument and handling of each
liter of milk at the time of collection at DCS. Thus the bacererial contamination is decreased and
best quality of milk is sustained for long time.
Electronic Weighing Scale (EWS):
18
Electronic weighing Scale is measuring/weighing instruments in which the milk will be

measured/weighed in liters as in KGs Milk producer directly pour the milk in it. A digital
display will show the number of liters poured by the producer.
SUPPLY OF STAINLESS STEEL EQUIPMENTS TO DCS:
Milk union proposes to supply S.S Steel Milk cans and Equipments to the DCS under
CMP.SUPPLY OF S.S Containers to milk Producers. Milk Union proposes to supply stainless
vessels to all the (BPL families and others) milk producers.
Animal Health Coverage:
Under animal health programme more emphasis will be given for mastitis control. SAAF
Kit will to all the (BPL families & others) milk producers.
Construction of cattle feed Godowns:
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.
19
INFRASTRUCTURE FACILITIES:
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:
SL.NO
1
LOCATION
Main Dairy
TALUK & DISTRICT

BELLARY, BELLARY district
Small Dairy
Raichur-Raichur district.
INSTALLED CAPACITY (LPD)

40000
20000
10000
Ittigi
Chilling Hadagali Taluk
center
Gangavathi
Gangavathi-Town-Koppal
Chilling center
Dadesugur
district
Sindhanur
Chilling center
Bulk-Milk
district
Kudligi-Bellary district
cooler-Kudligi
Bulk
Milk Kustagi town-Koppal district
10000
Taluk-Raichur 30000
5000
5000
Cooler
2.2 GROWTH AND DEVELOPMENT

The World Bank funded Dairy Development Program in the country started in Karnataka
with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy
co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from
World Bank, Operation Flood II & III. The dairy 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,
processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to coSKNG Govt first Grade Collage Gangavathi
20
ordinate the growth of the sector at the State level. Coordination of activities among the Unions
and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk
in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid
milk among the member Milk Unions is monitored by the Federation. While the marketing of all
the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk
products are sold under a common brand name NANDINI
2.3 PRESENTS STATUS OF THE ORGANISATION;

The organizations present status is given in the e different headings, viz, milk
procurement, milk sales, administration development, area of operation etc
(I) MILK PROCUREMENT:
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
(ii)AVERAGE GROWTH RATE OF MLIK PROCURMENT

21
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
(iii) MILK SALES:
There are mainly 15 distribution routes are being served by RBKMUL and 28
milk procurement routes. There are around 400 agents sell milk covering all 3 districts.
The yearly sale of milk is given in the table 2.3
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
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
cows milk which could stay fresh without refrigeration for over 45days have been released in
retail packs
(iv)ANNUAL TURN OVER OF RBKMUL, BELLARY:
22
The organization annual turn over increased every year. The following table explains the
turn over of organization
Table 2.4
Annual turn over
YEAR
2007-08
2008-09
AMOUNT(in crore)
28
33
(v)DETAILS OF PROFITABILITY OF RBKMUL BELLARY:

The evidence for showing the growth rate of the organization & profitability. The
following table clearly indicates the profitability of the organization
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.
23
(vii)DEVELOPMENT OF GREEN FODDER:

In the year 2008-09 SSG Jowar seeds of 2,500 kg have been given to grow green
fooder for animals and 50 metric tones dry grass has been supplied to farmers.
(viii)DEVELOPMENT PROGRAMMES:
In the year 2008-09 under step scheme 20 women members and directors of co-operative
societies were sent to Amul at Gujarath.
(ix)STEP SCHEME:
Under this scheme Government of India has approved Rs.19, 89,869 amounts with the
Co-operative of KMF. By this scheme 45,000 women members of 20 districts will get training as
dairy professional.
(x)SALE OF MILK AND OTHER PRODUCTS:
During the year 2008-09 daily 52,433 kgs milk are sold in various cities.
Ghee of 183.5 metric tones were sold
Peda of 7,500 kgs were sold
Milton bottle of 42,000 were sold
Excess of milk were send to converted into Skimmed milk powder, Butter, Lassies.
(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.
24
CHILLING CENTER
BELLARY
DHADESAGAR
ITIGI
KUDLIGI
GANGAVATHI (KOPPAL)
RAICHUR
CAPACITY OF MILK
40,000
30,000
10,000
5,000
10,000
20,000
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
03
25
42
00
01
71
KGS (PER DAY)

491
5566
13225
RAICHUR
MANVI
SINDHANOOR
DEO DURGA
LINGASAGUR
TOTAL
19
42
86
06
01
154
1682
19450
Table 2.8
Details of Bellary district
BELLARY
REGISTERED
NO.OF
MILK
DIST
SOCIETY
FUNCTIONAL
COLLECTION
56
62
SOCIETY
22
25
KGS (PERDAY)
4069
2283
BELLARY
SIRUGUPPA
25
HOSPET
SANDUR
KUDILGI
H.B.HALLI
HADAGALI
TOTAL
24
11
48
30
40
274
06
01
27
28
22
131
554
52
3441
5864
3962
20225
Table 2.9
Details about Koppal district:
KOPPAL DIST
REGISTERED
NO.OF
MILK
SOCIETY
FUNCTIONAL
COLLECTION IN
32
61
26
17
136
SOCIETY
14
37
16
02
69
KGS (PER DAY)

1743
9741
1173
101
12758
KOPPAL
GANGAVATHI
YALBURGA
KUSTIGI
TOTAL
2.4
FUTURE PLANS OF THE ORGANISATON
PERSPECTIVE PLAN 2012

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
26
implementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and Gulbarga that were
having accumulated losses were included for rehabilitation programme under the Centrally
Sponsored Scheme "Assistance to Cooperatives" which is also under implementation.
FUTURE VISION:
To consolidate the gains of Dairying achieved in the state of Karnataka and with a view of to
efficiently chill, process and market ever developing and increasing milk procurement with an
utmost emphasis on the Quality and in the process conserve the socio-economic interests of rural
milk producers, the 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
2.5 ORGANISATIONAL CHART:

chart2.1
27
Board
Managing director
Procurement & input

Department
Dairy department
Administration
Department
Finance
Department
Purchase
Department
Marketing
Department
Manger
Dy manger
Superintendent
Superintendent
Dy manger
Asst manger
Dy manger
Technician
Officer
Asst supt
Asst supt
Asst
Extension
Officer
Asst manger
Dairy
Supervisor
Worker
Worker
Worker
Asst
Extension
Officer
Junior technician
Worker
Workers
Worker
2.6 SWOT ANALYSIS OF RBKMUL:

28
The present organization having strengths, weakness, opportunities

STRENGTHS: Strong Brand Value and reliability
Highest market share among the organized brands in the packed milk
market segment.
Strong Distribution of network and better reach.
Good Infrastructure facility compared to competitors.
Consistency in quality and Timely supply of Milk.
WEAKNESS: Majority of Nandini dealers are not loyal.

Poor market visibility and availability.
Sales based on Agents indent.
Mismatch between consumers expectation in terms of Quality.
No established system for consumer Grievance Redressal.
OPPORTUNITIES: -
29
A large market with a good potential for liquid milk.

Growing industrial and institutional demand for nandini milk.
Good scope in opening milk Parlours at all Taluk and prime location in
the district head quarters.
Milk delivery can be improved by introducing more TCD system at
Bellary, Raichur and Hospet cities to meet the market demand.
THREATS: High margin paid to retailers by competitors.

Flexibility in trade policy by the competitors.
Strong door delivery system of loose milk vendors.
30
CHAPTER III
DETAILED STUDY OF THE
DEPARTMENTS
CHAPTER: III
DETAILED STUDY OF THE DEPARTMENTS
31
Detailed study of the departments

The organization is having six important departments. This chapter discuss about the
detailed analysis of the various department.
The list of departments is as follows:
1) Purchase department
2) Procurement & Input department
3) Production department
4) Administration department
5) Finance department
6) Marketing department
3.1 PURCHASE DEPARTMENT
32
The purchasing activities include selecting good geographical area, which is well suited
for cattle, and were the cattle are more in number.
Purchasing is a managerial activity that goes beyond the simple act of buying 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.
Objectives of Purchase departments:
The following of them are the objectives of the purchase department
To procure right material.
To procure material in right quantity.
To procure from right and reliable source of vendor.
To procure material economically i.e. at right or reasonable price.
To receive and deliver material at place and right guide.
3.2 PROCURMENT &INPUT DEPARMENT

33
FUNCTION:
Main motive is to organizes milk producers in the villages
Input & services
Fodder
Extension programs
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
They vaccines are sold to farmers at subsidiary rate
Example: - foot & mouth diseases
34
SOCAIL SERVICES
Milk producers meeting
Education programs
Cattle feed (balanced nandini cattle feed to society)
They encourage growth of green fodder

I. Supplying seeds at subsidiary rates
II. (b) Supplying root stems of pareprine green fodder (co3)
(Grows once in a month up to 4 years)
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)
35
STAFF STRUCTURE OF PROCUREMENT & INPUT DEPARTMENT
Chart 3.1
Manger
P&I
Deputy manger
Procurement
Deputy manger
Animal husbandry
Deputy manger
Feed, fodder
Asst manger
Procurement
Asst manger
Animal husbandry
Asst manger
Feed fodder
Extension
Officers
36
SUPPORT TO TRANNING AND EMPLOYEMENT PROGRAMME (STEP)

Karnataka Milk Federation is implementing a special program for overall development of
women folk in rural areas. This program is named as "Support to Training and Employment
Program for women" (STEP) launched during 1997 with the financial assistance of Ministry of
Human Resource Development, Department of Women and Child Development Government of
India.
OBJECTIVES OF THE PROGRAMME

The program of STEP advocates the objectives of extending training for up gradation
of skills and sustainable employment for women through a variety of action-oriented projects,
which employ women in large number. The scheme covers 8 traditional sectors of employment.
Dairying and Animal Husbandry is one such sector, which gives sustainable employment and
income.
The STEP program is implemented with 90% financial assistance from Government of
India's Human Resource Development Division, Women and Child Development Department.
And 10% contribution should be made by the implementing agencies. The program of STEP
aims to make a significant impact on women in traditional sectors (dairying & animal husbandry)
by upgrading skills and providing employment to women on a project basis by mobilizing
women in viable groups, improving skills, arranging for productive assets (milch animals),
creating forward and backward linkages, improving/ arranging support services, providing access
37
to credit, awareness generation, gender sensitization, nutrition education, sensitization of project

functionaries.
Thus STEP advocates an integrated package of inputs aiming at the integrated
development of poor women in traditional sector, to enable them economically more viable,
independent and raise their socio-economic status .The main developmental objective is the
organization of the Women DCS in rural areas by mobilizing women viable groups and
generating self-employment opportunities and to take up dairying as their occupation.
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 households, 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:
NAME OF THE
DURATION OF
NO .OF
AMOUNT
PROJECT
STEP Proj-I
THE PROJECT
1997-2000
T.G.MEM
Zone-I 10,000
SANCITIONED
494.93 lakhs
STEP Proj-II
Est.400 WDCS
2001-2004
10,000
796.60 lakhs
STEP Proj-III
Est.200 WDCS
2002-2005
10,000
619.70 lakhs
Est. 200 WDCS
PROJECT COVERAGE
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
38
.TRANNING AND EDUCATION PROGRAMME

a Women Secretary Training
b Milk Testers Training
c Women Management Committee Members Training
d A.I Workers Training
e First Aid Worker Training
f Animal Husbandry and Dairy management Training Programme
g Chair Persons Orientation
AWARENEES PROGRAME
a
b
c
Health & Nutrition

Gender Sensitization
Legal Literacy
The ultimate objective of the project is to develop women group to be self-reliant on selfsustaining basis with the minimal Government support and intervention after the project period is
over
39
3.3 PRODUCTION DEPARTMENT

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
1999-2000
37665
32726
2000-2001
38103
32227
2001-2002
34952
34429
2002-2003
34932
37305
2003-2004
37971
37435
2004-2005
37427
40348
2005-2006
42263
40538
2006-2007
50847
42542
2007-2008
52244
54274
40
PRODUCTION PROCEDURE (chart: 3.2)

Received Milk (raw)
Weight tank (5OO kgs)
Dump tank (100 Kgs)
Chiller (5000 Lt/Hr)
Silo (15000 Lts)
HTST Pastuerisors
(High temperature in short time)
Cream separator
Standardization
Silo (pasteurized) (15000)
Overhead tank (5000)
Packing machine
Cold storage (7 DC TO 4 DC)
(Cap-20000lts.)
Dispatch
41
Market
Table 3.2
PRODUCT MIX
MILK
CURD
GHEE
BUTTER
LASSI
PEDA
1 lt
500 ml
200ml
500 ml
200 ml
-
500 ml
200 ml
-
MILK
200 ml
-
200 ml
-
250 ml
-
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.
BACTERIOLOGY TEST
Spc (std plate count method)
MBRT (METHELYN Blue reduction test)
Coli form
42
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 80s, 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
43
HIERARCHY OF PRODUCTION DEPARTMENT

CHART 3.3
MANGER
DAIRY
DEPUTY MANGER
DAIRY
Asst manger
Dairy technology
Asst manger
Engineering
Technical officer
Dairy technology
Technical manger
Engineering
Dairy supervisors
Dairy supervisors
Chemist
Senior technician
Technician
44
3.4 ADMINISTRATION DEPARTMENT

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 societys act 1959, it follows certain rules & regulation.
Recruitment rules
The recruitment policy of an organization is two methods. The first one by direct recruitment
from the out side, the second method is by promoting the existing staff members.
Direct Recruitment
Under this method selection can be made either by competitive examination or oral interview.
The recruitment & promotion shall be ground by the grade & recruitment rules duly approved by
the registration of co-operative societies.
APPOINTMENT PROCEDURE
DIRECT RECRUITMENT: If it is by competitive examination after giving adequate publicity
as the appointing authority may determine in the order of merit subject to reservation from the
list of candidates prepared by the selection committee.
If its by selection after giving such adequate publicity in as least one in kannada one in
English leading news papers to the recruitment as the appointing authority may determine
45
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
Table3.3
Details about shift allowances
SHIFT
TIME
1 st
6-OO AM TO 2-OO PM
2nd
2-00 PM TO 10-00 PM
3 rd
10.00 PM TO 6-00 AM
RUPEES
2.25
2.00
3.00
Table 3.4
Details about other allowance
Heat allowance
20/month
Cold storage allowance
30/month
Xerox allowance
25/month
Cash allowance
50/month
stenographer (special
75/month
allowance)
Typist (special allowance)
60/month
Driver allowance
90/month
Employee benefits:
46
Group sharing link insurance (GSIL) all the employees on cover under GSIL scheme of
India .in case of death the employees are paid insurance amount in accordance with the category
of the particular employee.
Milk subsidiary act employee is provided liter milk at 50% as subsidiary rate
for 10 months and 1 liter milk as 50% subsidiary rate remaining 2 months November &
December.
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)
Profits will be distributed as.
25% reserves fund
5% contribution to cooperative fund
2%S.C.E.F
10% dividend
70% bonus
10% building fund
47
10% charity fund

2% dividend and equalization fund
3% research & development
5% co-operative propaganda
SHARE CAPITAL: RS 100/-Per share only societies are eligible
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
Others
Rs 3.00/-per day
Rs 7.00/-per day
HIERARCHY OF ADMINISTRTION DEPARTMENT

48
The hierarchy of administration department is shown in the chart 3.4
Chart 3.4
Superintend
Asst superintendent
Tapal (personal file)
Stenographer
Typist
3.5 FINANCE DEPARTMENT

49
Financial function is an area financial decision-making harmonizing individual motive

and co-operative goods. It covers not only financial planning, but also optimum use of funds as
well as the financial control.
The basic functions performed are the day-to-day fund management, treasure management,
beside these the book of accounts
.The decision regarding acquiring of plant and machinery or any other capital expenditure is
made on the basis of payback period/internal rate of return/net present value method. Thus being
a co-operative organization the ultimate decision lies in the hands of the board of directors.
The credit period allowed to buyers upon the mutual understanding or as per contract and credit
period allowed by the supplies is 7-8 days (payment is made on weekly basis to farmers).
The main objectivities of the Finance department are to control the finances and minimization of
expenditure, providing services to the member milk unions and its societies & the process of
making profit .though the objective of the federation is not to absolute profits, the profits are
incidental to the business.
FUNCTIONS OF FINANCE DEPARTMENT:

The finance department performs various functions. The functions are as follows.
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
50
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%.
INTEGRATED BUISNESS PLAN:

The finance department prepares the integrated business plan, for the organization.
Integrated business plan is prepared after taking into consideration the various facts like previous
experience, growth of the industry competitors behavior, market conditions of demand &
supply, export/import policy of the govt, govt legislations on various issues, statutory levies, and
geographical conditions.
The market is volatile & also due to heavy competition, there is lot of fluctuations in the market
conditions. Hence, preparation of integrated business plan meticulously is a very important task
for the federation.
Consolidation of the Integrated Business Plan & submission to the Board for its approval.
Monitoring of the Integrated Business Plan on a monthly basis/quarterly basis to ensure that the
units & the division heads adhere to the time schedule given in the Integrated Business Plan for
undertaking various tasks including infrastructural development etc
SOURCES OF INCOME: The organizations sources of income are as follows

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.
51
Sales tax and Income tax assessments:

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.
Since the federation is making little profits, they are bound to pay certain amount of taxes &
income tax assessments are being done as per the provisions of Income Tax Rules.
52
HIERARCHY OF FINANCE DEPARTMENT:

The finance department is having six hierarchy. The hierarchy details are given in the chartn3.5
Chart 3.5
MANAGING DIRECTOR
SUPERINTENDENT
ASST SUPERINTENDENT
SENIOR ASSISSTANT
JUNIOR ASSISSTANT
CASHIER
53
ANALYSIS OF BALANCE SHEET

The organization balance sheet showed various information about the organization. As
per the balance sheet information, (annexure I) the total assets of the organization is Rs 14, 72,
06,223From this building value rs 23, 95,494 and computer and printers are Rs 32,970. The
organization capital is Rs 7, 78, 24,248.
54
3.6 Marketing department

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

PRODUCT:
They are flooring milk in different quantities like half liter & one liter
The quantity of the milk is also high. The brand name of the firm is very popular. The system of
milk packing is very hygienic and convenient for the transport purpose.
PRICE:
The pricing method followed by the firm is very sound and prices of the product are very
competitive, details are given in the table 3.3
Table 3.5
Details about price
PRODUTS
PRICE TO
COMMISSION
MRP(RS)
Shubam
Toned milk
Double toned milk
DELAERS (RS)
17.00
14.50
13.00
1.0
0.50
1.00
18.00
15.00
14.00
PROMOTION:
55
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:
Distribution channel is as follows
DAIRY----------------------DELAERS--------------------CONSUMERS.
They maintain their own delivery vehicle some times,

They follow O level marketing
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
56
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.
Red color sachets are used for standardized milk. They are using 100% 500ml packets.
Ghee is being packed in sachets. The color of sachets is yellow. They are packing 200ml
and 500ml packets.
Tin for bulk selling flavored milk is in 250ml and bottles.
Peda is being packed in 250 grams blue colored cartons.
Brand policy:
Uniform brand policy all over Karnataka i.e. Nandini.
Distributors Policy, terms/conditions:
They are not selling their milk and milk products through distributions. They are selling
only through agents.
Price Policy methods:
They are following cost of production method. According to raw material price, agents,
commission, electricity bill, expenditure, variable and fixed overheads transportation, the price
will be fixed.
Price Strategy:
According to quality of the product and after considering all fixed and variable expenses,
the final price is arrived.
57
Details on Sales Promotion:

The organization follows various methods of sales promotion techniques .the techniques are as
follows
School children programmes.
Mahila Mandal programmes.
Qualification testing programmes.
Telephone contacts with customers.
Customers Dairy visit.
Door to Door consumer awareness programmes

Hoarding, pole advertisements, wall paintings, supply of sign boards to agents, glow
signboard, flute boards and supplying of Nandini milk carry bags to agents.
New Product Development Approach Procedure:

They are planning to launch DAIRY WHITENER (powder) for making coffee, sweets,
curds etc
Considering the market survey, market situation, price availability of competitors milk
availability and considering the distribution strategy they are going to launch a new product. The
introduction of new product will be published in the newspapers, TVs, picture theaters to
enlighten customers.
Training to Sales Staff:

For training purpose Field Staff National Dairy Development Board at KMF a Central
Office Bangalore, Tamilnadu, Gujurat & other places to impart necessary training to their sales
staff.
58
Remuneration to Sales Staff:

Against fixed salary as per Government rules the sales staffs are working.
Billing:
Regarding milk sales the salesmen collect the amount from agents as per the trip sheet
and same is remitted to main Dairy cash reception. The trip sheet is prepared on the bases of
Delivery challan.
Milk procurement:
Against suppliers of milk from villagers based on the fat and SNF the rate per kg of milk
will be arrived at and detail billing will be done on this basis and sent to the villages along with
the payment.
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
RESPONSIBILITIES OF MARKETING HEAD

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
59
Establishment of new parlors

Institutional customers
Physical stocks
Incentive and margin of retailers
Sales Promotion:
Formulation of budgets
Strategies to be employed
Allocation of budget
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.
60
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.
Facilitate door delivery of milk through milk retailers and unemployed boys.
Penetrate the new markets by rescheduling the existing milk distribution routes.
Concentrate more on institutional milk supplies like hotels, marriage and function hall.
Proposed to reschedule milk distribution routes to cover the uncovered area in both city as well
as Upcountry. Proposed to conduct Door-to-Door survey with the help of management school
students in Bellary and Lingasagur cities.
Cold chain facility will be strengthened to supply good quality milk to consumers.
Mahila mandal meeting, milk testing programme will be conducted. The programme will be
organized in presence of local area leader, Doctor, while conducting the programme, all the
available milk sachets in the city will be tested for quality and consumer will get convenience
about the quality and quantity of milk supplied by private brands.
61
HIERARCHY OF MARKETING DEPARMENT

The hierarchy details of the marketing department is given in chart 3.6
Chart 3.6
Managing director
Deputy manger
(Bellary)
Asst manager
I/c (Raichur)
Marketing officer
I/c (hospet)
Marketing officer
(Bellary)
Marketing assistant
Marketing assistant
(2) Marketing assistant
62
CHAPTER IV
STUDY OF SPECIFIC
MANAGEMENT PROBLEMS
63
CHAPTER: IV
STUDY OF SPECIFIC MANAGEMENT PROBLMES
THE STUDY OF SPECFIC MANAGERIAL PROBLEMS:
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
64
CHAPTER-V
CONCLUSION AND
RECOMMENDATIONS
65
CHAPTER-V
CONCLUSION AND RECOMMENDATIONS
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.
66
ANNEXURE: I
Details about the higher officials
CHAIRMAN
DIRECTOR
SRI H. HANUMANTAPPA
SRI B. SURYANARAYANA
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
MANAGING DIRECTOR RBKMUL
MURTHY
SRI K.THIMMA REDDY
SRI H.M.GURUSIDDA SWAMY
SRI ESHAPPA.Y.MADINOOR
SRI V.MUTYALA RAO
SRI M.V.PATIL
SMT.J.B.SUMANGALAMMA
DR. B.M. PREMNATH
ANNEXURE: II
67
Details about Department Heads
PROCURMENT AND INPUT
Sri. R. HOSA GOWDER
DEPARTMENT (MANAGER)
DAIRY & CHILLING CENTER
FINANCE DEPARTMENT
SRI .R.SURESH KUMAR

VINCENT.R.NOEL
(ACCOUNTS SUPERINTENDENT)
PURCHASE DEPARTMENT
ADMINISTRATION DEPARTMENT
MARKETING DEPARTMENT
SRI. K.CHIKKANAIAH
SRI T.J.RADHA KRISHNA
DR.K.S.BASAVARAJ
Total number of employees in RBKMUL-125 and

Contract labourers-70
Total number of managers-2
Deputy managers-5
Assistantmanagers-3.
ANNEXURE: III
IMPORTANT PHOTOGRAPHS OF THE ORGANISATION

68
RELEASING THE NEW PRODUCT
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
LAUNCHING OF NEW PRODUCTS

69
Launching New Product

70
The Karnataka Milk Federation has launched nandini good life milk in tetra brick in 1 Litre pack
which was released by Chairman, KMF on 12th April 2006.
BIBLIOGRAPHY
BOOKS
71
1. Everett E Adam, Ronald J Ebert, Production and Operations Management

5th Edition, Prentice Hall of India Pvt Ltd, 2005.
2. Philip Kotler, Keller Kevin Lane, Marketing Management, 12th Edition
Prentice Hall of India Pvt Ltd, 2005.
3. Prasanna Chandra, Financial Management, 5th Edition, Tata McGraw
Hill, Publishing Company Limited, 2001.
4. V S P Rao, Human Resources Management, 2nd Edition, Excel Books,
2005.
WEBSITES:
www.kmfnandini.coop
www.Google.com
OTHERS;
RBKMUL Brochure
Data provided by all the Departments of RBKMUL
72

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TABLE OF CONTENTS

PROFILE OF THE RBKMU

Origin of the RBKMU

DETAILED STUDY OF DEPARTMENTS

CONCULSIONS AND RECOMMENDATIONS

SKNG Govt first Grade Collage Gangavathi

LIST OF CHARTS & GRAPHS

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

1.3 INDUSTRIAL BACKGROUND OF THE STUDY

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

1.3. D FUTRE OF THE INDUSTRY

After the completion of Phase 3 of Operation Flood, a Programme Implementation

NDDBs Institution Building Programme to strengthen dairy cooperatives in aspects like

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

And Milk Products. The Brand '

Over view of the Organization:

: Raichur, Bellary & Koppal milk union Ltd

: 12/12/1989 according to producers societies

: Selected by Board of Directors

: (I) milk in 2grades

: from municipality and own wells and bore wells

: Rs82.34, 900 share capital collected from MPCS

10. Power facility

: from K.P.T.C.L power grid

11. Initial investment

SKNG Govt first Grade Collage Gangavathi

prominent role in strengthening to bring out socio-economic

transformation by helping the landless and marginal farmers.

SKNG Govt first Grade Collage Gangavathi

OBJECTIVES AND GOALS

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

Information programs, consumers education programs

Consumers awareness programs, consumers dairy visit

Program, hotel owner meeting, school children program etc

To use different media for the purpose of marketing their

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

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

To increase the member of the union to 49,000

SKNG Govt first Grade Collage Gangavathi

Milk union target is to sell 85,000 liters in next coming 3 years

Union is conducting training programs to employees, union members, society members

VISION & MISSION

SKNG Govt first Grade Collage Gangavathi

SKNG Govt first Grade Collage Gangavathi

Electronic weighing Scale is measuring/weighing instruments in which the milk will be

SKNG Govt first Grade Collage Gangavathi

TALUK & DISTRICT

INSTALLED CAPACITY (LPD)

Chilling Hadagali Taluk

2.2 GROWTH AND DEVELOPMENT

2.3 PRESENTS STATUS OF THE ORGANISATION;

(I) MILK PROCUREMENT:

(ii)AVERAGE GROWTH RATE OF MLIK PROCURMENT