Internship Report at

HASSAN CO-OPERATIVE MILK PRODUCER’S SOCIETY UNION LIMITED HASSAN

Submitted By
YASHAS N Y
USN: 4VZ22BA129
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI.
In partial fulfillment of the requirements of the award of the degree of.
Master of Business Administration
Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. KAVITHA B.N. VIJAY L
Assistant Professor Production Manger (DT)
Department of Management Studies HAMUL
VTU Centre for Post-Graduate Studies B M Road HASSAN 573201
MYSORE- 570029

DEPATMENT OF MANAGEMENT STUDIES

VISVESVARAYA TECHNOLOGICAL UNIVERSITY
CENTRE FOR POST-GRADUATE STUDIES
HANCHYA-SATHGALLI, MYSURU-570 019
2023-24
 VISVEVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
Department of management Studies
Centre for post Graduate Studies
Hanchya- Sathagalli Layout (outer ring road) Mysuru 570019

CERTIFICATE

This to certify that YASHAS N Y bearing USN: 4VZ22BA129 is bonafide student of

Master of Business Administration, Visvesvaraya Technological University Centre
for Post Graduate Studies, Mysuru (2023-24) Internship Report on “ Hassan Co-
operative Milk Producers Societies Union Limited ” is prepared by her under the
guidance of Dr. KAVITHA B N Assistant Professor, Department of Management
studies, VTU CPGS, Mysuru in partial fulfillment of the requirements for the award
of the degree of Master of Business Administration of Visvesvaraya Technological
University Belagavi, Karnataka

Dr. KAVITHA B N Dr. M S YATHISH CHANDRA

Internal Guide Program Coordinator

External Viva

Name of the examiners

1………………. Signature with date

2…………………….
 DECLARATION

I YASHAS N Y bearing USN 4VZ22BA129 hereby declare that internship Report on

this organization study conducted at “Hassan Co-operative Milk Producers Societies
Union Limited.” Is record of independent work carried out by me under the guidance
of “Dr. Kavitha B N ”and external guidance by “Vijay L” Production Manager
Hassan Co-operative Milk Producers Societies Union Limited.
I also declare that this organization study is towards the partial of the university
regulation for the award of degree of MASTER OF BUSINESS
ADMINISTRATION by VISVESWARAYA TECHNOLOGICAL
UNIVERSITY, BELAGAVI.

I have undergone an organization study for a period of four weeks I further declare
that this organization study undertaken by me and not been submitted for the award of
any other university/institution.

Place: Signature of the student

Date:
 ACKNOWLEDGEMENT

It gives me immense pleasure to extend my thanks and

gratitude to those who have been instrumental in the completion of this
project report.
I am very much grateful to the regional director, Dr, T.P Renuka
Murthy, Visvesvaraya Technological university- Mysuru for permitting
me to carry out this study.
I hereby express my sincere and heartfelt thanks to Dr. M.S.
Yathish Chandra, Program Coordinator, Department of Management
Studies, VIU PG Centre, Mysuru for his timely suggestions and
encouragement to complete the Project.
I express my sincere gratitude to my internal guide Dr. Kavitha
B.N, Assistant Professor, Department of Management Studies, VTU
PG Centre for postgraduate Studies Hanchya-Sathagalli Layout Outer
Ring Road, Mysuru. Her continuous support and valuable guidance in
carrying out this project successfully.
I express my thanks to Vijay L , Production Manager at Hassan Co-
operative Milk Producers Societies Union Limited (B M Road hassan)
for providing relevant information with his valuable guidance, his
constant support, inspiration, and encouragement during his busy
schedule given to me in carrying out this project successfully.
I thank all my faculty members and non-teaching staff of MBA
department for their continuous support and coordination, for the
completion of project.
Finally, I would also like to express my grate fullness to VTU for
including this project work in the course curriculum which has
enriched me in terms of experience and knowledge, lastly, I thank my
family and friends for their continuous support to complete this project
report.

4
 Place : MYSURU YASHAS N Y

Date: 4VZ22BA129

TABLE OF CONTENT

CHAPTER CONTENT PAGE NO

NO

1 Introduction about the organisation and Industry 7-10

2 Organisation profile 11-26

 Background
 Nature of business
 Vision, Mission, quality policy
 Work flow model
 Product/service profile
 Ownership pattern
 Achievements/awards if any
 Future growth and prospectus

3 Mckensy’s 7S framework and porters Five Force 27-36

Model

4 SWOT Analysis 37-40

5 Analysis of financial statements 41 – 45

6 Learning experience and conclusion 46 – 47

5
 Bibliography 48

EXECUTIVE SUMMARY

This internship study is based on four weeks internship program that I have successfully
completed in HASSAN COOPERATIVE MILK PRODUCERS SOCIETIES UNION LTD
HASSAN The purpose of this internship is to know the organization structure, workflow and
various department functions and also to understand the organization. The internship study
helped me to understanding the work environment better under the supervision of my external
guide. The internship study is undertaken as a part of the curriculum as instructions given by
Visvesvaraya Technological University.

This study is divided into six chapters, The first chapter of the report deals with the overview of
the industry. The second chapter deals with the organization profile, which focuses on
background, nature of the business, vision, mission, quality policy, workflow model,
product/service profile of the organization, ownership pattern and future growth and prospects of
the company.

The third chapter of the report focuses on Mckinsey's 7s framework, whichh includes Structure,
System, Style, Staff, Skill, Strategy, Shared values. These 7s framework helps to analyze and
look forward how the company works. And porter’s five force model, includes Rivalry among
existing competitors, Threats of new Entrants, Threat of substitutes, Bargaining power of buyers,
Bargaining power of suppliers.

The fourth chapter deals with SWOT analysis of the HASSAN COOPERATIVE MILK
PRODUCERS SOCIETIES UNION LTD which analyze the strength, Weakness, Opportunities
and Threat of the company to achieve excellence and growth of the organization. The fifth
chapter deals with the analysis of financial statement of the organization to analyze whether the
company is under profit or loss.

6
The sixth chapter gives an opportunity to share learning experience that gained during the period
of organization study at HASSAN COOPERATIVE MILK PRODUCERS SOCIETIES UNION
LTD .

CHAPTER 1
INTRODUCTION ABOUT THE ORGANIZATION AND INDUSTRY

Introduction to internship and industry

Internship is a study of learning and obtaining the practical knowledge and also experience in
certain circumstances. Students extend the concept of their own organization structure and
various work relationship at the working environment. This helps to bridginggap between
theoretical knowledge and practical knowledge application through sequence idea.It also give the
information on communication skills and thinking skills in a situation.

Dairy is a place where processing of milk and production of milk products is done and
technology refers to the application of scientific knowledge for practical purposes. Dairy
technology has been defined as that branch of dairy science, which deals with the processing of
milk and the manufacture of milk products on an industrial scale.

Objectives of organization Study

 To understand organization structure of various departments.

 To study the function of different department
 To know the systematic procedure of each department
 To know overview of management in industry.

7
 To know the working environment in organization.

INDUSTRY PROFILE

Dairying in developed countries such as the USA, the year 1850 is seen as the dividing
line between farm and factory scale production. Various factors contributed to the
change in these countries viz., concentration of population in cities where jobs were
plentiful, rapid industrialization, improvement of transportation facilities, development
of machines etc., where as the rural areas were identified for milk production, the urban
centers were selected for the location of milk processing plants and product
manufacturing factories. These plants and factories were rapidly expanded and
modernized with improved machinery and equipment to secure the various advantages of
large-scale production. Nearly all the milk in the USA before 1900 was delivered as raw
(nature) milk. Once pasteurization was introduced, it developed rapidly. Mechanical
refrigeration helped in the rapid development of the factory system of market
distribution.
The evolution of the dairy sector in India and the stellar role played by dairy
cooperatives since the launch of Operation Flood form an integral part of the country’s
remarkable growth story after Independence. Today, India is the largest producer of milk
in the world, contributing 23% of global milk production.

DAIRY IN INDIA

8
 In India, dairying has been practiced as a rural cottage industry since the remote part.
Semi-commercial dairying started with the establishment of military dairy farms and co-
operative milk unions through out the country towards the end of nineteenth century.
During the earlier year, each household in those countries maintained its family cow or
secured milk from its neighbor who supplied those living close by. As the urban
population increase, fewer households could keep a cow for private use. The high cost of
milk production, problems of sanitation etc., restricted the practice, and gradually the
family row in the city was eliminated and city cattle were all sent back to the rural areas.
The Indian dairy industry has made rapid progress since independence. A large number
of modern milk plants and product factories have since been established. These
organized dairies have been successfully engaged in the routine commercial production
of pasteurized bottled milk and various western and Indian dairy products.
With modern knowledge of the protection of milk during transportation, it become
possible to locate dairies where land was less expensive and crops could be grown more
economically.
In India, the market milk technology may be considered to have commenced in 1950
with the functioning of the Central Dairy of Aarey milk colony, and milk product
technology in 1956 with the establishment of AMUL dairy, Anand. The industry is still
in its infancy and barely 10% of our milk productions under goes organized handling.

History of Indian Market Milk Industry:

 Organized milk handling was made in India with the establishment of Military Dairy
Farms
 Handling of milk in co-operative milk unions established all over the country on a small
scale in early stages.
 Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945.
 Pasteurization and bottling of milk on a large scale for organized distributed was started
at Establishment of milk plants under the 3- year plans for dairy development all over
India. They were taken up with the dual object of increasing the national level of milk
consumption and ensuring better returns to the primary milk producer. These main aims
were to produce more, better and cheaper milk.

9
Indian represents one of the worlds largest and fastest growing markets for milk productivity by
march 1999, it was 74 million tones, and by 2001 it reached to 88.5 million tones of milk. The
strength of the dairy economy is in its livestock of 270 million that includes 57 million cows and
39 buffaloes, which also is the largest in the world. In terms of percentages we have 54% of the
Asian population.

Current scenario

Due to the country’s improving economy, more and more Indians now have disposable incomes
that may be spent on goods like dairy. A further factor contributing to the expansion of the food
and drink market is the increasing prevalence of dairy product use. One of the most important
factors boosting the dairy industry in India is the introduction of new harvesting techniques that
have increased output. The nation has made it a priority to increase its productivity per animal by
implementing a number of different policies. The Indian government set up the National Dairy
Programme to increase milk production and make it easier for farmers to get milk, which
increased demand even more. Domestic and foreign private firms are also driving growth in
India’s dairy business today. Private enterprises like these provide a diverse selection of goods to
meet the needs of their customers. Customers are giving greater attention to high-end dairy
products, including cheese, probiotic drinks, yoghurt, etc. Indians eat a lot of dairy products
because they are high in calcium and have other important nutrients. This has increased demand
and grown the dairy industry. Future Trends to Keep an Eye On The dairy industry in India is
aiming to build a $355 billion industry by 2025.

In the future, the following trends can be witnessed:

 Business to consumer
 Promotion of net banking
 Infrastructure.

Dairy Industry in Karnataka

In June 1974, an integrated project was launched in Karnataka to restructure and reconcile the
dairy industry on the cooperative principal and lay foundation for the new direction in dairy

10
development, work on the every first world bank aided dairy development project was initiated
in 1975 Initially the project converted 8 southern districts of Karnataka and Karnataka dairy
development corporation was set up to implement the project. The multilevel activities were
setup with dairy cooperative societies at gross root levels, milk union at the middle level as an
apex body, vested with responsibility of implementing Rs.51 crores project ended and the dairy
development was continues in second phase from April 1984, KMF come into
existence(Karnataka Milk Federation).

CHAPTER 2

ORGANIZATION PROFILE

Introduction:

Name HAMUL

Headquarters B M Road, Industrial Estate, Hassan

Type Cooperative

Industry Dairy Industry

11
 Founded in 1975

Products Milk, Curd, Butter, Ghee, Butter Milk,

Ice Cream, Sweets, PET bottle.

Parent Karnataka Milk Federation

Website https://hamul.coop.

Hassan co-operative milk producers’ society union ltd was established with an aim to support
small and marginal farmers and agricultural labors through dairy development. Farmers were not
sure of receiving a remurative price for their agricultural products so more and more farmers
taken up diary as their main occupation rather then subsidiary occupation for their livelihood.
The milk union is committed to accept all the milk offered by the milk producers in the milk
shed area and hence there is a considerable increase in milk procurement during recent years.
Hassan milk union believes that it is a social responsibility on part of the union to pay
remunerative price to the farmers.

Kodagu district is well known for commercial crops like coffee, orange, cardamom etc. So in its
area the Karnataka’s first commissioned dairy plant, Kudige dairy established in the year 1955.

The Hassan Co-operative Milk Producer Society Union Ltd. (HCMPSUL) has came into
existence in the year 1975. Now it is situated in the industrial estate beside the national highway
(NH75), with the object to develop dairy development activities in the rural area.

In June 1974 an integrated project was launched in Karnataka to restructure and recognize the
dairy Industry on the co-operative principles and to lay foundation for new direction in dairy
development. World Bank aided dairy development project was initiated in 1975. Initially it
covered 4 districts of Karnataka such as Mysore, Hassan, Tumkur, and Bangalore.

Hassan Co-operative milk producer’s society union ltd. Was set up to implement the project by
Karnataka dairy development co-operation (KDDC) in 1975. It has registered on 30th March
1977 after formation of milk societies. The operational jurisdiction of union extended to 3
districts namely Hassan, Chikmagalore and Kodagu.

ISO 22000:2005 Quality management systems has been implemented.

12
HISTORY OF HAMUL

Hassan Milk Union Limited (HAMUL) is a District Level Milk Co-operative society
established under KMF on 30th March 1977. At the beginning it was started in a small shed
beside Seetharamanjinaya Temple near Park Road. Presently it is widely spread in a 27-acre plot
in the Industrial Area B.M. Road, this being the procuring & processing unit. It is having
Chilling centers in Holenarsipur, Hassan District. Kudige in Coorg District and Birur in
Chikkamagalore,

Near Geejihalli at Arasikere Taluk and Shettyhalli near Channarayapatna. These chilling centers
have been kept aside for the easy storage of milk for the distribution in 3 districts Hassan.
Chikkamagalore & Coorg. Milk is been collected daily in two shifts a day from all societies in
the Hassan District & Processed & dispatched to 3 districts and also to other dairies in the state
and outside

Sl.no Dairies & Processing unit Capacities

1. Hassan 3.50 Lakh lters/day (Expandable
to 5.0 LLPD)
2. Kudige in Coorg District 80,000 liters/day
Sl.no Chilling Centers Capacities
1. Birur in Chikkamagalore District 100000 liters/day
2. Holenarsipura in Hassan District 150,000 liters/day
3. Channarayappttana 1,50,000 liters/day
4 Arasikere 1,50,000 liters/day
Hassan milk union is carrying business of producing and marketing milk and milk products, such
as peda, curd, ghee, Butter milk and mysorepak
Hassan milk union procuring milk from rural areas and providing input activities to dairy co-
operative societies like artificial insemination, supply cattle feed, animal health care programs
for the uplifment of the producers.

Five Years information:

Year Functional Avg Avg Local
DCS Procurement/day(I sales/day(In

13
 n KG’s) LTR’s)
2018-19 1462 837032 148378

2019-20 1490 873159 150329

2020-21 1529 971360 149560
2021-22 1563 1030489 159149
2022-23 1681 1040995 187376

Aims and objectives

Hassan Co-operative Milk Producers Societies Union is completely an autonomous body
consisting of representatives from milk producers as policy makers.
The area of operation in the districts of the district of Hassan, Kodagu and Chikkmagalore. The
milk union also aims at sustained in rural areas through meticulous planning, training, strict
implementation and follow up progress of various schemes offered by, both state and central
Government.

 Formation of dairy co-operative societies under the principles of co-operation to

encourage small, marginal farmers and agricultural labourers to take up dairy
activities.
 To provide continuous and remunerative makers for the surplus milk in the rural
areas.
 To supply quality milk to customer in the urban areas at a competitive price.
 To provide the technical inputs necessary to produce good quality milk and to
facilities increase in milk yield.
 To provide self employment to rural folk and to make them economically self
sustainable by which the migration of rural folk to urban areas is minimized.
 . In addition to organizing the dairy co-operative under the principle of co-
operative to prevent the role of middle men in the milk business and to increase
their returns.
 To establish a bridge between rural and urban folk and to play a vital role in
changing the social and economic status of the rural folk.

14
 2.1 Nature of business
The organization core the operational area of the Union got delineated to 3 districts
namely Hassan, Chikmagalore and Kodagu. HAMUL at present covers 70% villages in
18 taluks under 1435 functioning DCSs.
The Union strives hard to adopt the modern & eco-friendly technologies to produce milk
& milk products of international standards to make our presence prominent in the global
market. Hassan Milk Union aims torender the best service at nominal cost to its members
to increase milk production and produce good quality milk by paying remunerative price
throughout the year, thereby improving their economic and social condition while
ensuring high quality milk & milk products to the delighted level of the consumers at
Present operation area of Hassan milk union competitive price.
2.3 VISION ,MISSION, QUALITY POLICY

VISION

The union thrives hard to adopt the mode and eco friendly technologies to produce milk and
milk products of international standards to make our presence prominent the global market.

MISSION

Hassan milk union aims to render the best services at nominal cost to its members and to
increase milk production and produce good quality milk by paying remunerative price
throughout the year, thereby improving their economic and social condition while
ensuring high quality milk and milk products to the delighted level of the consume

15
QUALIY POLICY

Hamul is the committed to the upliftment of its producers surplus member by supporting
them to produce surplus milk of good quality and continually satisfy customer
expectations and timely delivery of good quality milk and milk products meeting to legal
standards by developing an healthy relationships with the suppliers and motivating the
work force to adhere to good manufacturing practices

2.4 Workflow model

16
PACKAGING TECHNOLOGY:

17
Milk was initially sold door-to-door by the local milkman. When the dairy co- operative
initially started marketing branded milk, it was sold in glass bottles sealed 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 int plastic pouches/ bottles
have a shelf life of 1-2 days, that too only if refrigerated. In 1996, Tetra packs were
introduced in India. Tetra packs are aseptic laminate packs. Made of aluminium, paper,
board and plastic milk stored in tetra packs and treated under ultra high temperature
(UHT) technique can be the dairy cooperatives in Andhra Pradesh, Tamil Nādu, Panjab,
& Rajasthan sells milk in Tetra Packs.

18
19
These above images shows work flow model of HAMUL from receiving the milk from the
villages which covers hassan , Kodagu, chikkamangaluru through cans and vans vehicals to
receptions separation milk spoiled milk stored container next milk move to lab test (quality
checking) next making cip making pastarastion, homologation like heating and cooling of milk
to kill bacteria saeparation of fats from milk stored milk tanker next is packing from the above
information packing process is done through technology ang machines, manual support next
storing finished goods and distributions is done retails whole sellers parles etc.

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2.4 PRODUCT PROFILE
HAMUL product range
 MILK.
 CURD AND OTHER FEDMENTED PRODUCTS
 BUTTER AND GHEE
 ICE CREAM AND FROZEN DESSERTS
 MILK SWEETS
 OTHER PRODUCTS
MILK:
Pasteurised toned milk
There are two variants in this milk one is blue pack and orange pack
Blue pack.
In blue milk pack Fat contain 3 %this is available in 250ml, 500ml and 1ltr packs.
Toned milk for 500ml Rs 20, 1000ml 42Rs.

Orange Pack-
This milk variant has less fat with 4% fat and 9 c/o SNF this is available in 500ml and
1ltr packs. 500ml 23Rs, 1000ml 49Rs

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Nandini double toned milk-
This milk type is has less fat 1.5 c/o and 9 c/o SNF this milk type is for people who
are health conscious and for senior citizens.

Good life milk:

This milk type is double toned UHT processed milk bacteria free in a tamper proof tetra
fine pack which keep the milk fresh for 60 days it has 3.5 c/o and 8.5 c/o SNF.
Slim milk:
This milk variant milk 99.5 cat free this is mainly focused on the people who are health
conscious.
Aluminium foil and paper which prevents the milk well 60 level qualities.
“Less than one defect out of ten lakhs products”, 100gm 200gms 500gms

Good life UHT long life milk:

Fresh milk, 3.5 c/at and 8.5 c/o SNF processed and packed aseptically to retain its
Freshness and for extra-long shelf life of 1 year
“Good life and good life UHT is supplied to army because of its long shelf life” 180 fino
RS 14. Good life SLM 500ml 36 RS, Good life bricks 1000ml 67 Rs.

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 CURD

Nandini curds are made out of pure milk. Its thick and delicious, giving all is kindness traditional
way of homemade curds.
It is thick and delicious. Its is available s in 250g 500g packs as per 31/3/2023

SL NO Curd Packing Quantity and price

1 Nandini curd Packs 200 ml for 13Rs

2 Nandini curd Packs 500 ml for 26 Rs

BUTTER MILK

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 Butter milk is blended with spices to give the enlivening spice. Curd is blended with
fresh green chillies, coriander leaves, asafoetida and fresh ginger. It is recommended
drink after food for early digestion.Masala buttermilk is manufactured and sold in the
summer season, especially form moth of March to July, the only period during which it
gets demand. On an average the selling mounts to about 1000lts per day in 200ml
sachets. RS 9 Per pack of 200ml

NANDINI GHEE:
Ghee is made from butter . It is fresh and pure with a delicious flavor manufactured in
hygienic and packed in the goodness of pure ghee . it is life period validity of 6 months
Available in 200ml For 145 Rs, 500ml For 325Rs,1000ml For 650Rs. Ghee jar 5 ltr 3275
Rs. Ghee jar 200ml 155Rs.

BUTTER:
Creamy Butter with smooth texture and all the goodness of fresh pasteurised milk Rich
smooth and delicious.it is available in two variants salted and unsalted.it is packed in 100
gm, 200gm and 500 gm. And 500 gm RS 275. 200 gm 115Rs

PEDA

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Peda is very delicious made from pure milk. Its can be stored for 7 days and available
250gms 10 pieces.

Price as per 31/3/2023

SL NO Particulars Packing Quantity price

1 Nandini peda Box 100gms 60 RS

2 Nandini peda box 250gms 125 RS

Mysore Pak:
It is one of the Karnataka’s traditional sweet which very famous. It is made of pure ghee.
It is the most favourite choice of all. It gives a pure taste of ghee and it melts the hearts
when it consumed. Available in 25gm, 250 gm RS 160 and 500 gm.
Nandini Bite
The fun sweet that can be enjoyed like a chocolate. Gram flour and corn flour added
with almonds, cocoa, cardamom, Ghee and pure milk make his a favourite among
children available in 15 gm sachets RS 5.

Ice Cream:
Ice cream is made of pure milk with real fruit flavours. There are different types of ice
cream that are manufactured in Nandini, like Nandini Magic, choc-bar, pista, kulfi,
delightfully taste etc Started from 10, 20, 30 rs, cone for 25 and 30 Rs.

PET BOTTLE PRODUTS

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 Pet bottle products includes milk shecks badam milks having 250 ml to 300ml as per
organisation information pricsing 25, 30, and 40 rs there are somany flavours srabarry
vanila pista badam etc its supply to railways and othes order from retailers etc.

2.6 OWNERSHIP PATTERN

The Hassan milk union cooperative society ownership under Karnataka milk federation.
Ministry of cooperative, government of Karnataka. Hamul was Found on june 30 1977 and
having 19 members community one person board of director 13 managing director 5 elected
members.

2.6 ACHIEVEMENT/AWARDS

 Energy conversation awards in 2004 from Manmohan Singh prime minister of India.
 Energy conversation awards in 2005 from A PJ Abdul kalam, president of India.
 Energy conversation awards received second price in 2006.

26
  Energy conversation awards received Third price in 2007.

2.7 FUTURE GROWTH AND PROSPECTS

 To increase milk storage of union to 10 lakh liters in next 5 years.

 Active members are around 60 to 80 percent of the program.
 Formulating and implementing a permanent program by the union itself to involve more
and more women members in dairy farming.
 Emphasis on collection of superior quality milk through use of modern technology at the
level of associations.
 Designing schemes with modern technologies and setting up new units to increase
processing capacity parallel to the increase in milk collection.
 Export of milk and other products to neighbourhood countries and middle east country .

CHAPTER 3
MCKENSY’S 7 S FRAMEWORK AND PORTER FIVE FORCE MODEL

27
 MCKINSY’S 7S FRAME WORK

3.1. INTRODUCTION:

Mc - Kinsey' s 7's model tool of analyzing organizational design. It helps to achieve the
organizational goals. This was developed in 1980s by mc- Kinsey's consultants tom peters,
Robert waterman and Julian Phillips with a help from Richard Pascal and Anthony Gath's. The
model increase company performance in efficiently and effectively the model was show the 7
elements it divided into 2 group like hard and soft.

1.STRUCTURE:

28
 PRESIDENT

CHAIRMAN/BOARD OF DIRECTOR

MANAGING DIRECTOR(C.E.O)

MIS
ADMINISTRATIS FINANCE P&I PURCHASE MARKETING
DAIRY/ QUALITY
ON PRODUCTION CONTROL

GENRAL DEPUTY DEPUTY TECHNICAL DEPUTY DEPUTY MANGER

MANGER MANGER MANGER DEPUTY DEPUTY MANGER
OFFICER
MANGER MANGER HASSAN, KODAGU,

PURCHAS CHIKMAGALUR
A/C
DEPUTY ASST SUPERVISORS Asst MANGER OFFICER
SUPERINT
MANGER MANGER (DT) (ICP
DENTS MARKETNIG
LAB),(UHT SUPPORT
OFFICER
LAB),(PET STAFF
EXTENTI BOTTLE SUPPORT
ADMINISTRATI LAB) STAFF
ON OFFICER A/C ON SUPPORT
ASSISTANTS OFFICER ROUTE
STAFF MANGER
GRADE I,
CHEMISTS
II, III
ADMINISTRA
TION
SUPPORT INCHARGE
ASSISTANTS SUPPORT
P STAFF SUPPORT
STAFF
STAFF
SUPPORT SUPPORTS
STAFF TAFFAFF

The functional structure of HCMPSUL is appropriate for an organization with several product
lines. It ensures maximum use of the principle of specialization. Since the workers have

29
performing a limited number of functions, their efficiency would be very high. Hassan milk
union has marketing, administration, finance, and MIS department.

1. ELECTED BODY:

The Co-operative society members are eligible for electing the President and other governing
members The President heads the elected body. The elected body controls the societies and they
keep a close watch on the working of the Co-operative societies and HAMUL. Mr.
H.D.Revanna, former Minister is the present president of Hassan Milk Producers Co-operative
Societies & KMF.

Administration Department

HCMPSUL has an administration department that takes care and controls all other departments
of the union.

The main functions are:

 To develop official work procedure and process in order to increase the profit margin.
 To provides an ample opportunities for helping the employee to maintain high level of
work.
 To schedule work property so that all jobs are completed on time.
 To maintain responsible quality and quantity standards.
 To provide satisfactory physical on mental environment for employees.

Procurement and Input Department

• The procurement and input department is concerned with collection of milk from various
DCS.
• To follow up daily procure schedule as per the plan.
• To collect quality of milk by checking fat content.
• To maintain good relationship with DCS.
• To send procured milk to production unit.
•

Finance Department

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Finance department of the union is well staffed with resource personnel. The department takes
care of all the financial transactions of the union. The department is fully computerized.

Marketing Department

Marketing department plays a vital role in determining the future abilities of the company. Its
main objective is to distribute goods from producers to the customers. It distributes milk to
consumers and also provides consumer education through ad campaigns and participating in
various exhibitions.

 To plan marketing programmes.

 To analyze marketing opportunities.
 To develop marketing strategies.

2.STRATEGY:

Hassan milk union is formulating appropriate strategies in order to meet the challenges and to
develop and strengthen dairy co-operative movements on the following thrust namely:

• Procurement, processing and marketing.

 Quality assurance programme.

 Reasonable pricing.

Pricing decisions are subject to an incredibly complete array of environmental and competitive
forces. HCMPSUL set not a single price, but rather a pricing structure that covers different items
in its line. This pricing structure changes over time as products move through their life cycle.
The organization adjusts product prices to reflect changes in costs and demand and to account for
variation in buyers and situations. As the competitive environment changes, company considers
when to initiated price changes and how to respond to them.

Hassan milk union produces different milk produces to cater efficiently the variety milk needs of
the urban and semi urban consumers of the jurisdiction. Different prices are charged to different
types of milk on the basis of FAT and SNF [Solid not FAT]

3.SYSTEM

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System refers to all the rules, regulations, and procedures, both formal and informal that
complement the organization structure.

Milk Procurement Procedure

The production department is responsible for procurement of raw milk. It consists of two wings
called purchase and stores. Purchase wing is processing of raw milk and stores wing is receiving
and issuing the same to the user department. Indent is raised by the user department and is
registered at stores after verifying the availability of stock at stores. After registration, the indent
is forwarded to purchase wing for procurement. At the time of registration of indent if stock is
available, it is issued to the user department and the indent is cancelled.

On receipt of indent the purchase wing lends enquires to various suppliers who normally supply
the milk and milk products. Then these suppliers submit their offers. After receiving the offers, a
comparative statement is made and forwarded to the general manager for recommendations. The
General Manager chooses a most suitable offer for placement of purchase order.

On receipt of purchase order, the supplier lends the milk and milk products along with the bills.
The products are received at receipt section of the stores and are verified against the specification
laid in purchase order.Then products/goods inspection note is prepared and forwarded to the GM
department for inspection of the milk & milk products supplied. Then the GM inspects the
material with quality experts at stores and accepts the same on reject depends upon the quality of
products. If the material is accepted, produce/goods receipt note is prepared and forwarded to
Account section and the material is stored in specified location. If the product/goods rejected
Then product/goods receipt note as well as reject note prepared and forwarded to accounts
Section for making payment to give information to the supplier about the rejection whenever
GRA is prepared the stock of the particular items gets update in system. The rejection producers
are returned to the suppliers.

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4 SKILL

To import required skill, Hassan Co-operative milk producers’ society conducting training
programme i.e., both on the job training and off the job training which increases the knowledge
and skill of an employee for doing the job.

On-the-Job Training Method

Under this method, the individual is placed on a regular job and learns under the supervision of
guidance of the instructor. Hassan milk co-operative society provides On-the-Job training
according to the need. For this method of training, they are inviting experts from various training
institutions. This type of training will be conducting once in three months/six months/ a year.
Under this method, the individual is placed on a regular job and learns under the supervision of
guidance of the instructor.

Hassan milk co-operative society provides On-the-Job training according to the need. For this
method of training, they are inviting experts from various training institutions. This type of
training will be conducting once in three months/six months/ a year.The methods of on-the-job
training, which are adopted by Hassan milk union, are as follows:

Coaching

The trainer is placed under a particular supervision that functions as a coach in training the
individual. Hassan milk union provides coaching in order to fulfill the organization requirements.
To give coach they are inviting experts from various institutions like National Dairy
Development Board (NDDB), and sometimes top managers of the organization etc. Job
Instructions

The union conducting this type of training at the time of selected new employees. Under this
method the experts or the superior explains to the trainee the way of doing the job and allow him
to do the job.

Off the Job Training

Under this method of training, trainee is separated from the job situation. Here employee can
place his entire concentration to learn rather then spending time in performing job.

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Visible Training

Under this method, actual work condition is stimulated in a classroom. Hassan milk union sends
its employees to National Dairy Development Board (NDDB), Mehsana, and Confederation for
Indian industries (CII) and NDDB Anand for technical training. This type of training is
commonly used for training individuals for technical and clerical job. Seminars

Under this method, the individual give seminar on selected topic. Supervisory personnel given
seminars in difference institutions like NDDB Anand, NDDB E-Board, and Confederation of
Indian Industries (CII) etc.

Under this method participant plays the role of certain characters, like general manager,
marketing manager, technicians, workers and the like. The union provides this training to
manager/employees in order to develop

5. STYLE:

The management of HCMPSUL follows the style as in other government organization.

Each employee is accountable to his superior and each leads his subordinates.

Top down Decisions

Fixing the targets to the employee and the workers who are working in the organization.

• Reducing or increasing the price of the product

• Policy issues

Example to conclude the decision-making parameter pertaining the day-to-day operation to

conclude the style of functioning.

The manager of the purchasing department selects the Material suppliers. The manager of the
purchasing department has the authority to select the supplier for providing the necessary raw
materials for the production function. The suppliers are selected on the basis of the tender.
Which one has quoted the lowest price for the materials, that vendor will be selected as a
supplier for the raw material, which is required for the production.

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6 STAFF

Staff refers to the organizations human resources. Management is concerned with the
accomplishment of objectives by utilizing physical and financial resources through the efforts of
manpower.

There are 294 Employees worked in the organization Employee divided based on grade
A,B,C,D. In the grade A 14 Employees Presently,110 Employees in B Grade, Grade C 168
Employees and finally grade d 2 Employees works in Hamul.

7. SHARED VALUE:

Shared values are what engender trust values are the identity by which a company is kwon
throughout its business areas. These values must be explicitly stated as both corporate objectives
and individual values. These are the company level beliefs, mindsets and assumptions that shape
how an organization behaves.

The shared values of HCMPSUL are:

 Providing quality milk to urban consumers.

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

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3.2Porters 5 force model

Introduction:

Porter’s Five Forces is a model that identifies and analyzes five competitive forces that
shape every industry and helps determine an industry’s weaknesses and strengths. Five
Forces analysis is frequently used to identify an industry’s structure to determine
corporate strategy.
Porter’s model can be applied to any segment of the economy to understand the level of
competition within the industry and enhance a company’s long-term profitability. The
Five Forces model is named after Harvard Business School professor Michael E. Porter.

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According reference of Hamul apply this model following below.

3.2,1 Rivalry between the firms.

The compeitive rivalry in dairy industry is usually moderate so Hamul face the
competition from others dairy cooperatives and like Bemul, tumul, Chamul etc and other
private dairy companies. How ever, Hamul com under kmf having strong brand and
distribution network give there competitive advantage. Other Competitors like KAVERI,
JERSEY, LOOSE MILK, DODLA DAIRY, HERITAGE Etc.

3.2.2 Bargaining power of suppliers.

Farmers who engage in farming in cattle they supplying the milk to Hamul. The
bargaining power of suppliers is moderate because hold some bargaining power
especially it comes to pricing and the others terms, so Hamul organization structure
balance this power.

3.2.3 Bargaining power of buyers.

When come to bargaining power of buyers, the consumers having limited oppartunities
bargaining power because they having limited substitutes of purchasing dairy products
so KMF is major player in market,

3.2.4 Threats of new entries

The Hamul cooperative having sustainable infrastructure and distribution network
support of KMF and strong foot hold so new entries is challenging for others companies.

3.2.5 Threats of substitute

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 When come to threats of substitute is limited because essential dairy products like milk
items. There are other dairy brands Hamul come under kmf nandini having strong brand
so reduce the threats of substitutes.

CHAPTER 4

SWOT ANALYSIS

SWOT ANALYSIS

A tool that identifies the strengths, weakness, opportunities, and threats of an

organization i.e., SWOT is a basic, straightforward model that assesses what an
organization can and cannot do as well as its potential opportunities and threats. The
method of SWOT analysis is to take the information from an environment analysis and
separate it into internal and external issues. Once that is completed, SWOT analysis
determines what it may assist for in accomplishing its objectives, and what obstacle must
be overcome or minimized to achieve desired results.

When using SWOT analysis, one has to be realistic about the strengths and weakness of
an organization. Distinguish between where the organization is today, and where it could
be in the future. Also, we should be specific by avoiding grey areas and always analyze
in relation to the competition (i.e., are we better or worse than competition?). Finally,
keep the SWOT analysis short and simple, and avoid complexity and over analysis since
much of the information is subjective.

PURPOSE OF SWOT ANALYSIS

 To capitalize on the strategies of the company.

 To overcome the weaknesses of the company.
 To exploit full opportunities available in the environment.

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  To manage successfully the threats posed by the internal and external environment.

SWOT ANALYSIS OF HCMPSUL

1. STRENGTHS:

 Huge Demand:

There is a huge demand for Nandini milk and milk products in the market. Milk is very much
needed for the children and the people to get good calories, vitamin and nutritional. There is
increased population in India; hence there is increased demand for milk products.

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 Availability of Milk

Union can easily get required milk with less cost from the rural area according to the need. Most
of the farmers in Hassan district are having at least 2 or 3 cows or buffaloes in their home. Hence
there is a good availability of milk for HCMPSUL.

 Nandini Brand

Nandini milk, Nandini ghee, Nandini curd etc Nandini products are well branded in the market
because of their quality.

 Man Power
There is well experienced, professionally trained technical employees are working in the
company with minimum experience of 15 years. It helps organization to maintain the quality
of the product.

 Location

Hassan milk union is located in industrial estate beside NH-48 where people can easily found the
company. It reduces the cost of transportation and leads to publicity of company

 Good quality control.

 On time delivery.

 Skilled employees.

 Standardized products.

 Easy access to loans from National Dairy Development Board.

 Adaptability to changing technology.

2. WEAKNESS:

Inadequate Transportation, Bad condition of roads and inadequate transportation facilities makes
milk procurement problematic.

No Cattle Form

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HCMPSUL, has no cattle form in its own, it becomes one of the major weakness of the
Company.

It focused more only on rural segment and very less concentration on urban area.

New employee has less social security eg: accommodation is not provided to new employees
where in it restricts their stay for a long period.

 Limited advertisements

 No credit business.

3. OPPORTUNITIES

 Export

There is demand for Nandini Products in other states vise Kerala, Goa. So it can export its
product to those states along with Tamil nadu and Andrapradesh, outside of the countries

 New Product Innovation

It can innovate new products like Khoa, Ice cream, Panneer and dairy Sweets in the same
product line.

 Employment

It provides more employment opportunities to the people. Currently there are 500 employees are
working in the organization.

Young, enthusiastic employees put their best efforts, which results in the growth of organization.

The brand, image of the firm helps it to enter new areas quickly.

4. THREATS:

 Market uncertainty

There is a price fluctuation in the market, it may leads to decrease the demand and there by
reduction in profit.

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 Competition

Competitors are coming with similar product, this is the main threat posed by the external
environment.

Many private firms have entered into Manufacturing of dairy products, there Is a tough
competition for Nandini Like KAVERI, JERSEY, LOOSE MILK, DODLA DAIRY,
HERITAGE and many more

CHAPTER-05

ANALYSIS OF FINANCIAL STATEMENT

INTRODUCTION TO FINANCIAL STATEMENT:

Finance is derived as the provision of money when it is required. Every enterprise needs
finance to start and carry out its operation. Finance is the life blood of an organization.
So, finance should be managed efficiently. Financial statement are prepared primarily for
decision-making. Financial statement analysis refers to the process of determining
financial strength (s) and weakness(es) of the firm by properly establishing strategic
relationship between the items of the balance sheet and profit and loss account.

FINANCIAL ANALYSIS – MEANING AND CONCEPT:

Financial analysis, also known as analysis and interpretation of financial statements,

refers to the process of using financial information to assist in investment and financial
decision-making. It helps managers with efficiency analysis and identification of
problem areas within the firm. Also, it helps managers identify strengths on which the
firm should build.

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 OBJECTIVES OF FINANCIAL STATEMENTS ANALYSIS:

 To assess the earning capacity or profitability of the firm.

 To assess the operational efficiency and managerial effectiveness.
 To assess the short term as well as long term solvency of the firm.
 To identify the reasons for change in profitability and financial position of the
firm.
 To determine the dividend action.
 To help in decision making and control.
 To make the intern firm comparison.
HASSAN COOPPERATIVE MILK PRODUCERS UNION LTD
MANUFACTURING AND TRADING ACCOUNT FOR THE PERIOD AT THE
END OF MARCH 2022 AND MARCH 2023

PARTICULAR 31-03-2023 Amt 31-03-2022 Amt

Sale of milk, milk, products, cattle 19,61,88,58,826.92 16,36,57,94,145.84

feed and others

Closing stock 27,57,99,251.00 37,01,94,726.13

TOTAL 19,89,46,58,077.92 16,73,59,88,871.97

PARTICULAR 31-03-2023 Amt 31-03-2022 Amt

Opening stock 37,01,94,726.13 73,72,77,335.33

Purchase of raw materials 15,49,05,89,612.56 12,52,70,27,239.18

Proc transport charges 263476661.98 34,48,48,304.48

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Processing & mfg. Expenses 2466292177.18 1,88,06,34,008.83

Salary and other benefits 249785979.22 28,19,76,954.67

Gross profits 1,05,43,18,920.85 96,42,25,029.48

TOTAL 19,89,46,58,077.92 16,73,59,88,871.97

HASSAN COOPERATIVE MILK PRODUCERS SOCIETIES UNION LTD PROFIT

AND LOSS ACCOUNT ON FOR THE PERIOD AT THE END OF MARCH 2022 AND
MARCH 2023
INCOME 31-3-2023 Amt 31-3-2022 Amt
Gross profit 1,05,43,18,920.85 96,42,25,029.48
Other income 9,631,524.45 2,36,14,353.95
Interest on loan & advances 7,39,63,630.66 3,37,05,044.21
TOTAL 1,13,79,14,075.96 1,02,15,44,427.64
EXPENSES 31-03-2023 Amt 31-03-2022 Amt
Salary and other benefits 6,24,46,494.81 7,04,94,238.67
Administrative expenses 3,67,51,400.32 3,21,36,912.18
Rent, rates, and Taxes 5,73,78,676.28 5,45,97,385.31
Selling and distribution 52,05,21,538.72 41,14,60,987.48
expenses
Postage & insurance services 13,65,67,852.93 9,77,57,051.66
Interest and bank charges 2,06,51,873.98 2,02,79,562.31
Depreciation 10,17,39,016.74 10,70,81,699.01

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Provision for trade flucation 2,54,50,943.00 2,12,18,557.00
fund
Provision for infrastructure 8,60,00,000.00 12,16,10,776.00
Provision for taxation 4,99,93,433.00 5,06,32,454.00
Net profit transferred to 40412846.18 3,42,74,803.50
balance sheets
TOTAL 1,13,79,14,075.96 1,02,15,44,427.64

HASSAN COOPERATIVE MILK PRODUCERS SOCIETIES UNION LTD

BALANCE SHEET FOR THE PERIOD OF MARCH 2022 AND MARCH 2023
CAPITAL AND IABILITIES 31-3-2023 Amt 31-3-2022 Amt
Share capital 34,77,56,770.07 30,80,24,202.87
Depn and other funds 2,87,30,16,833.40 2,32,29,70,826.24
Profit and loss account 4,04,12,846.18 3,42,74,803.50
Loans 1,38,80,39,683.00 2,00,19,950.00
Grands and Subsidies 2,58,87,45,094.32 2,85,46,91,639.85
Current Liabilities 3,29,28,85,922.41 1,87,31,85,990.90
Provision 41,35,40,557.82 36,35,47,124.82
TOTAL 10,94,43,97,707.20 7,77,67,14,538.18
ASSETS AND PROPERTIES 31-3-2023 Amt 31-3-2022 Amt
Cash on hand 6,48,937.1 8,06,411.78
Cash at bank 44,58,59,888.39 52,90,83,957.18
Investment 2,27,10,79,398.19 98,28,01,725.07
Fixed Assets 5,77,16,77,376.49 4,82,05,12,170.85

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Current Assets 1,62,34,29,962.27 64,86,74,273.57
Loans, Advances & Deposits 15,37,500.00 -4,01,012.10
Sundry debtors 22,27,09,910.13 14,67,46,823.01
Audit Objection 43,982.13 45,866.13
Stock on hand 60,74,10,732.50 64,84,44,322.69
TOTAL 10,94,43,97,707.20 7,77,67,14,538.18

RATIO ANALYSIS

SL NO RATIOS YEAR 2023 YEAR 2024

1 GROSS PROFIT 5.37% 5.89%
RATIO
2 NET PROFIT 0.206% 0.209%
RATIO
3 TOTAL ASSET 1.79 Times 2.10 Times
TURN OVER
RATIO
4 OPERATING 0.97:1 0.98:1
RAATIO

1 GROSS PROFIT RATIO : Gross profit has been reduced when compared to last year
changes in 0.52%.

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2.NET PROFIT RATIO : Net has been reduced when compare to last year changes in
0.003%.

3 TOTAL ASSET TURN OVER RATIO: From this ratio the assets as been inefficiently in
the year 2022 to 2023.

4 OPERATING RATIO: Operating ratios changes 0.98 to 0.97 times so my suggestion is to

say maintain this performance next coming years.

CHAPTER-06
LEARNING AND EXPERIENCE

 It is a great experience at HAMUL where we learnt many things about the functioning of
the company in accordance with the present market trends.
 We being the students of MBA were exposed to working environment.
 Since HAMUL is an organization which produces edible food hygiene is rightly
maintained. So it helped me to learn why different organizations have different policies
of maintenance.
 We came to know how management maintains relationship with workers, how they
handle grievances. We came to know how to interact with the people of the Organization
 This helped in developing our knowledge & it gave a practical experience of the
industrial scenario in the competitive environment outside the realms of the institute.
Also understood that only through team work, every work could be completed and
mission can be accomplished.

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  Journals and ledgers were treated important in this organization also because there are the
basis for any transaction which have been occurred. So got to know why we had these
chapters in our fundamentals of accounting.
 HAMUL has given more important to the customer satisfaction. By this we have learned
the strategies to be adopted for customer satisfaction.
 We observed the working technologies, management process, hierarchical relationships
among the employees and practices of organization like training, safety and welfare etc…
 We have studied the traits and qualities essential for executives and manage motivation,
leadership, understanding the needs of subordinates. We studied about human resource
skills, which indicate ability to deal with subordinate in a human approach to their
problems, develop personnel support and team spirit.
 Thus internship training has honed personal attitude like skills, talent, abilities and
attitude etc…which would guide us in contribution to Nation by working efficiently in
organization which fosters top performance.

BIBLIOGRAPHY

Website

www.hamul.coop.com

www.kmfnandini.coop

Report

Company Annual Reports.

Books

Ashadeepa its book contain organization information about Hassan cooperative milk producers
societies union Ltd.

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