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TABLE OF CONTENTS

CHAPTER CONTENTS Page


No.

Chapter - 1 INTRODUCTION

1.1 General Introduction 10


1.2 Objectives of the Study 12
1.3 Industrial Background of the Study 13
1.3. A. origin of the industry 13
1.3. B. growth and development of the industry 13
1.3. C. present status of the industry 14
1.3. D .Growth and Development 15

Chapter – 2 PROFILE OF THE RBKMU

2.1 Origin of the RBKMU 18


2.2 Growth & Development of the RBKMU 25
2.3 Present status OF RBKFMU 26
2.4 Future plans of the RBKMU 32
2.5 Organization structure and organization chart 33
2.6 SWOT analysis of the RBKMU 34

Chapter – 3 DETAILED STUDY OF DEPARTMENTS

3.1 Purchase department 38


3.2 Procurement & input Department 39
3.3 Production Department 45
3.4 Administration Department 50
3.5 Finance Department 55
3.6 Marketing Department 60
Chapter – 4 STUDY OF SPECIFIC MANAGEMENT 69
PROBLEMS

Chapter - 5 CONCULSIONS AND RECOMMENDATIONS 71

ANNEXURE

BIBLIOGRAPHY
LIST OF TABLES

Sl.No Chapter Particulars Page No


No.
1 II Year wise milk procurement 26
2 II Year wise growth rate 27
3 II Details of milk sales 27
4 II Annual turnover 28
5 II Profitability of the organization 28
6 II Details about chilling centre 30
7 II Details about Raichur district 30
8 II Details about Bellary district 31
9 II Details about Koppal district 31
10 III Year wise milk procurement and sales 45
11 III Product mix 47
12 III Details about staff allowance 51
13 III Details about other shift allowance 51
14 III Details about price 60

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LIST OF CHARTS & GRAPHS

Sl.No Chapter Particulars Page No.


No.
1 II Organization chart 33
2 III Hierarchy of procurement & input 41
department
3 III Production process 46
4 III Hierarchy of production department 49
5 III Hierarchy of administration department 54
6 III Hierarchy finance department 68
7 III Hierarchy of marketing department 67

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CHAPTER - I
INTRODUCTION

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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 world’s largest milk producer that is certified by the ‘international dairy industry ‘.
This is the reason for the recognition of India as dairy giant by united nation’s food & agriculture
organization (FAO)’.
Milk is an important &essential commodity to human life. The significance of milk is human life
can be traced from Vedic period. Cow is considered as the “living god” & milk as “Amrutha” in
Vedic version. Milk is having immeasurable value in use, which has been explained in many
slokas Vedas. Upanishads & puranas

According to “charaka”, who is considered as the father of Ayurveda system of medicine holds
the important of milk as “milk has ten properties viz, sweetness, coldness, softness,
unctuousness, density, smoothness, heaviness, slowness and charity”

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

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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.

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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.

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1.3 INDUSTRIAL BACKGROUND OF THE STUDY

1.3. A. ORGIN OF THE INDUSTRY

Dairying is the production and marketing of milk, usually cow’s milk product. It includes the
case of cow of cow’s breeding, feeding, management product. The milk must be collected,
processed into dairy products and markets. All these operations have been improved by
physiological, genetic, nutritional, chemical, microbiological, technological, economical and
marketing research and development.
Cattle, goat and sheep have kept by man for the production of milk since immemorial. Milk
butter and cheese were common food of the people in those days. Hindu Vedas written before
1200 BC mentioned the use of butter as food. The Mongols in the middle ages prepared
concentrated milk in the past and probably dairy form and used them as a time of civil war by
Americans. Grim ode’s British patent for producing dried milk was issued 1855. But large
production of dried milk did not being until 50 years.

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 18 th
century, the practice of selective breeding was established. It has been said that cow is machine
that converts raw materials (plant) into food in a surprisingly deficient manner. The method by
which cattle are managed in order to produce milk can be accomplished in many ways.

Milk may be defined as the whole fresh, clean, lacteal secretion obtained by the complete
milking of one or more healthy milch animals (cow, buffalos). Milk is the only food, which is
designed by nature solely as a food. It serves as the foundation of an adequate diet. As milk
Contains protein, vitamin and fats, it is very important for pregnant mothers, growing children,
adolescent, adult, convalescents and patients alike. In the 20th venture the diary.

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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.

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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 during 2004-05.

Perspective Plan, 2010

NDDB’s Perspective Plan 2010, developed in consultation with the 126 identified
cooperative milk unions and covering four thrust areas-strengthening the cooperative business,
enhancing productivity, managing quality and building a national information network-aims to
professionalise the working of dairy cooperatives in the emerging liberalized business
environment.

Strengthening the cooperatives

NDDB’s 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

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members attended the programmes organized by NDDB to sensitize and involve the board of
directors of milk unions in institution building.

Besides increasing the enrolment of women members in DCS and spreading awareness
among rural women about health, nutrition and literacy, the activities under Enhancement of
Women Involvement in 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.

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CHAPTER-II
PROFILE OF THE RAICHUR BELLARY
KOPPAL MILK UNION

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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 co-
operative 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

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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 producer’s 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 : 7 cores Under NDDB

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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 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.

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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

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• 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.

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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, BMC’s are to be installed.


BMC is a stainless steel tank attached to the chilling unit supported by Generator. The Raw milk
received at DCS level is chilled to 4 c in BMC.

Automatic Milk Collection Unit (AMCU):


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):

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Electronic weighing Scale is measuring/weighing instruments in which the milk will be
measured/weighed in liters as in KG’s 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.

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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 LOCATION TALUK & DISTRICT INSTALLED CAPACITY


(LPD)
1 Main Dairy BELLARY, BELLARY 40000
Small Dairy district
Raichur-Raichur district. 20000
2 Ittigi Chilling Hadagali Taluk 10000
center
3 Gangavathi Gangavathi-Town-Koppal 10000
Chilling center district
4 Dadesugur Sindhanur Taluk-Raichur 30000
Chilling center district
5 Bulk-Milk Kudligi-Bellary district 5000
cooler-Kudligi
6 Bulk Milk Kustagi town-Koppal district 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,

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processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-
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

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(ii)AVERAGE GROWTH RATE OF MLIK PROCURMENT

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

(iv)ANNUAL TURN OVER OF RBKMUL, BELLARY:

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The organization annual turn over increased every year. The following table explains the
turn over of organization
Table 2.4
Annual turn over

YEAR AMOUNT(in crore)


2007-08 28
2008-09 33

Source: company annual reports

(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.

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(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.

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CHILLING CENTER CAPACITY OF MILK
BELLARY 40,000
DHADESAGAR 30,000
ITIGI 10,000
KUDLIGI 5,000
GANGAVATHI (KOPPAL) 10,000
RAICHUR 20,000
Source: company annual report

AREA OF OPERATION
The organization operates the business in three districts. The district wise details are given in the
table 2.7, 2.8, and 2.9
Table 2.7
Details about Raichur district
RAICHUR REGISTERED NO.OF MILK
DIST SOCIETY FUNCTIONAL COLLECTION IN
SOCIETY KGS (PER DAY)
RAICHUR 19 03 491
MANVI 42 25 5566
SINDHANOOR 86 42 13225
DEO DURGA 06 00
LINGASAGUR 01 01 1682
TOTAL 154 71 19450
Source: company annual report

Table 2.8
Details of Bellary district
BELLARY REGISTERED NO.OF MILK
DIST SOCIETY FUNCTIONAL COLLECTION
SOCIETY KGS (PERDAY)
BELLARY 56 22 4069
SIRUGUPPA 62 25 2283

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HOSPET 24 06 554
SANDUR 11 01 52
KUDILGI 48 27 3441
H.B.HALLI 30 28 5864
HADAGALI 40 22 3962
TOTAL 274 131 20225
Source: company annual report

Table 2.9
Details about Koppal district:
KOPPAL DIST REGISTERED NO.OF MILK
SOCIETY FUNCTIONAL COLLECTION IN
SOCIETY KGS (PER DAY)
KOPPAL 32 14 1743
GANGAVATHI 61 37 9741
YALBURGA 26 16 1173
KUSTIGI 17 02 101
TOTAL 136 69 12758
Source: company annual report

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

SKNG Govt first Grade Collage Gangavathi 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

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Board

Managing director

Procurement & input Administration Finance Purchase Marketing


Department
Dairy department
Department Department Department Department

Manger Dy manger Superintendent Superintendent Dy manger Asst manger

Technician Asst supt Extension


Dy manger Asst supt Asst
Officer Officer

Dairy Worker
Asst manger Worker Worker Asst
Supervisor

Extension
Junior technician Worker
Officer

Worker Workers

2.6 SWOT ANALYSIS OF RBKMUL:

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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: -

SKNG Govt first Grade Collage Gangavathi 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.

SKNG Govt first Grade Collage Gangavathi 30


CHAPTER –III
DETAILED STUDY OF THE
DEPARTMENTS

CHAPTER: III
DETAILED STUDY OF THE DEPARTMENTS

SKNG Govt first Grade Collage Gangavathi 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

SKNG Govt first Grade Collage Gangavathi 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

SKNG Govt first Grade Collage Gangavathi 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

SKNG Govt first Grade Collage Gangavathi 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)

SKNG Govt first Grade Collage Gangavathi 35


STAFF STRUCTURE OF PROCUREMENT & INPUT DEPARTMENT

Chart 3.1

Manger
P&I

Deputy manger Deputy manger Deputy manger


Procurement Animal husbandry Feed, fodder

Asst manger Asst manger Asst manger


Procurement Animal husbandry Feed fodder

Extension
Officers

SKNG Govt first Grade Collage Gangavathi 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

SKNG Govt first Grade Collage Gangavathi 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 house-
holds, migrant tribal and other dispossessed group
IMPLEEMENTING AGENCY
The Ministry of Human Resource Development, Department of Women and Child
Development, Government of India has sanctioned 3 STEP Projects each having 3 year duration
for implementation in Karnataka. The financial outlay is as follows:

NAME OF THE DURATION OF NO .OF AMOUNT


PROJECT THE PROJECT T.G.MEM SANCITIONED
STEP Proj-I 1997-2000 Zone-I 10,000 494.93 lakhs
Est.400 WDCS
STEP Proj-II 2001-2004 10,000 796.60 lakhs
Est.200 WDCS
STEP Proj-III 2002-2005 10,000 619.70 lakhs
Est. 200 WDCS

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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

.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 Health & Nutrition


b Gender Sensitization
c Legal Literacy

The ultimate objective of the project is to develop women group to be self-reliant on self-
sustaining basis with the minimal Government support and intervention after the project period is
over

SKNG Govt first Grade Collage Gangavathi 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

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2005-2006 42263 40538

2006-2007 50847 42542

2007-2008 52244 54274

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)

SKNG Govt first Grade Collage Gangavathi 41


Overhead tank (5000)

Packing machine

Cold storage (7 DC TO 4 DC)


(Cap-20000lts.)

Dispatch

Market

Table 3.2
PRODUCT MIX

MILK CURD GHEE BUTTER LASSI PEDA


MILK
1 lt 500 ml 500 ml 200 ml 200 ml 250 ml
500 ml 200 ml 200 ml - - -
200ml - - - - -

• 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.

SKNG Govt first Grade Collage Gangavathi 42


BACTERIOLOGY TEST

Spc (std plate count method)


MBRT (METHELYN Blue reduction test)
Coli form

PACKING TECHNOLOGY

Local milkman initially sold milk door-to-door. When the dairy co-operatives initially
started with foil. Over the years, several developments in packaging media have taken place in
the early 80’s, plastic pouches replaced the bottles. Plastic pouches made transportation and
storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a
shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra packs were introduced in
India. Tetra packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk
stored in tetra packs and treated under ultra High temperature (UTH) TECHNIQUE CAN BE
STORED FOR MONTHS WITHOUT REFRIGERATIION

SKNG Govt first Grade Collage Gangavathi 43


HIERARCHY OF PRODUCTION DEPARTMENT

CHART 3.3

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MANGER
DAIRY

DEPUTY MANGER
DAIRY

Asst manger
Dairy technology Asst manger
Engineering

Technical officer Technical manger


Dairy technology Engineering

Dairy supervisors Dairy supervisors

Chemist Senior technician

Technician

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 society’s act 1959, it follows certain rules & regulation.

SKNG Govt first Grade Collage Gangavathi 45


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

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

SKNG Govt first Grade Collage Gangavathi 46


Table3.3
Details about shift allowances
SHIFT TIME RUPEES
1 st 6-OO AM TO 2-OO PM 2.25
2nd 2-00 PM TO 10-00 PM 2.00
3 rd 10.00 PM TO 6-00 AM 3.00
Source: company annual reports

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

Source: company annual reports

Employee benefits:

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

SKNG Govt first Grade Collage Gangavathi 47


Milk subsidiary act employee is provided ½ 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
10% charity fund
2% dividend and equalization fund
3% research & development
5% co-operative propaganda

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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 Rs 3.00/-per day
Others Rs 7.00/-per day

HIERARCHY OF ADMINISTRTION DEPARTMENT

The hierarchy of administration department is shown in the chart 3.4

SKNG Govt first Grade Collage Gangavathi 49


Chart 3.4

Superintend

Asst superintendent

Tapal (personal file)

Stenographer

Typist

3.5 FINANCE DEPARTMENT

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.

SKNG Govt first Grade Collage Gangavathi 50


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…
• 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:

SKNG Govt first Grade Collage Gangavathi 51


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.

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.

SKNG Govt first Grade Collage Gangavathi 52


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.

HIERARCHY OF FINANCE DEPARTMENT:

The finance department is having six hierarchy. The hierarchy details are given in the chartn3.5
Chart 3.5

SKNG Govt first Grade Collage Gangavathi 53


MANAGING DIRECTOR

SUPERINTENDENT

ASST SUPERINTENDENT

SENIOR ASSISSTANT

JUNIOR ASSISSTANT

CASHIER

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.

SKNG Govt first Grade Collage Gangavathi 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

SKNG Govt first Grade Collage Gangavathi 55


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)
DELAERS (RS)
Shubam 17.00 1.0 18.00
Toned milk 14.50 0.50 15.00
Double toned milk 13.00 1.00 14.00

PROMOTION:
They are giving advertisements in news papers. They also give ads in local channels like city
cable. For new launches they under take publicity through pamphlets

PLACES:

SKNG Govt first Grade Collage Gangavathi 56


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

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.

SKNG Govt first Grade Collage Gangavathi 57


• 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.

Details on Sales Promotion:


The organization follows various methods of sales promotion techniques .the techniques are as
follows

SKNG Govt first Grade Collage Gangavathi 58


• School children programmes.
• Mahila Mandal programmes.
• Qualification testing programmes.
• Telephone contacts with customers.
• Customer’s 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 competitor’s 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.

Remuneration to Sales Staff:


Against fixed salary as per Government rules the sales staffs are working.

Billing:

SKNG Govt first Grade Collage Gangavathi 59


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
Establishment of new parlors
Institutional customers
Physical stocks
Incentive and margin of retailers

 Sales Promotion:

SKNG Govt first Grade Collage Gangavathi 60


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.

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.

SKNG Govt first Grade Collage Gangavathi 61


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.

Managing director

Deputy manger
(Bellary)

Asst manager Marketing officer Marketing officer


I/c (Raichur) I/c (hospet) (Bellary)

HIERARCHY OF MARKETING DEPARMENT


Marketing assistant (2) Marketing assistant
Marketing assistant

The hierarchy details of the marketing department is given in chart 3.6

SKNG Govt first Grade Collage Gangavathi 62


Chart 3.6

SKNG Govt first Grade Collage Gangavathi 63


CHAPTER –IV
STUDY OF SPECIFIC
MANAGEMENT PROBLEMS

SKNG Govt first Grade Collage Gangavathi 64


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

SKNG Govt first Grade Collage Gangavathi 65


CHAPTER-V
CONCLUSION AND
RECOMMENDATIONS

SKNG Govt first Grade Collage Gangavathi 66


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.

SKNG Govt first Grade Collage Gangavathi 67


ANNEXURE: I

Details about the higher officials

CHAIRMAN SRI H. HANUMANTAPPA


DIRECTOR SRI B. SURYANARAYANA
MURTHY
DIRECTOR SRI K.THIMMA REDDY
DIRECTOR SRI H.M.GURUSIDDA SWAMY
DIRECTOR SRI ESHAPPA.Y.MADINOOR
DIRECTOR SRI V.MUTYALA RAO
DIRECTOR SRI M.V.PATIL
DIRECTOR SMT.J.B.SUMANGALAMMA
MANAGING DIRECTOR RBKMUL DR. B.M. PREMNATH

ANNEXURE: II

SKNG Govt first Grade Collage Gangavathi 68


Details about Department Heads

PROCURMENT AND INPUT Sri. R. HOSA GOWDER


DEPARTMENT (MANAGER)
DAIRY & CHILLING CENTER SRI .R.SURESH KUMAR
FINANCE DEPARTMENT VINCENT.R.NOEL
(ACCOUNTS SUPERINTENDENT)
PURCHASE DEPARTMENT SRI. K.CHIKKANAIAH
ADMINISTRATION DEPARTMENT SRI T.J.RADHA KRISHNA
MARKETING DEPARTMENT 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

SKNG Govt first Grade Collage Gangavathi 69


• 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

SKNG Govt first Grade Collage Gangavathi 70


• Launching New Product

SKNG Govt first Grade Collage Gangavathi 71


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

SKNG Govt first Grade Collage Gangavathi 72


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

SKNG Govt first Grade Collage Gangavathi 73