Amy BAMUL

EXECUTIVE SUMMARY

BAMUL is India’s no.1 milk diary. It processes the milk and supplies milk all over the

Bengaluru city. It also gives chance to students of BBA, B.Com, M.Com, MBA etc. to do

their implant study and project report on their company.

It consists of departments such as Marketing, Finance, Production, Purchase,

Administration, Quality control etc which is well maintained and well organized.

In BAMUL, Purchase department places the tenders for purchase of raw materials

through advertisements and then selects the suppliers and purchases the raw materials

from suppliers and sends it to stores department for storage. Marketing department also

has a main part in selecting the suppliers for the purchase of materials.

In BAMUL, Production department assembles the parts for the production of finished

goods according to the supply of raw materials. The finished goods are tested in quality

control department and then stored in stores.

In BAMUL, Marketing department carries all the marketing and promotional strategies to

market their product. It has a strong and well maintained distributing channel, with the

help of which it supplies its products to consumers on time.

In BAMUL, Finance department does all the billing and auditing work, maintains the

accounts of the suppliers and other members properly. Budget is prepared regularly. It

calculates the salaries of employees and the admin department makes the payment and so

on.

In BAMUL, Human resource department carries the functions like training and

development of the employees of the company, preparing human resource planning,

recruitment and selection etc.

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INTRODUCTION TO STUDY

As it is a part of our 3rd semester BBA, the study involves the organizational structure

and functioning of various departments. It explains in practical about the functioning of

various departments such as Purchase department, Finance department, Production,

Marketing, Human resources and so on. It gives an exposure of Corporate world. Study

in BAMUL explains the entire procedure of Milk processing till the stage of selling to the

final customer.

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INDUSTRY PROFILE

The highest milk producer in the entire globe – India boasts of that status. India is

otherwise known as the ‘Oyster’ of the global dairy industry, with opportunities galore to

the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest

growing milk and mil products' market. The dairy industry in India has been witnessing

rapid growth. The liberalized economy provides more opportunities for MNCs and

foreign investors to release the full potential of this industry. The main aim of the Indian

dairy industry is only to better manage the national resources to enhance milk production

and upgrade milk processing using innovative technologies.

Potential for investment in the dairy industry Some areas of Indian dairy industry can be

toned up by the evocation of differentiated technologies and equipment from overseas.

These include:

1. Raw milk handling: The raw milk handling needs to be elevated in terms of

physicochemical and microbiological properties of the milk in a combined

manner. The use of clarification and bactofugation in raw milk processing can aid

better the quality of the milk products.

2. Milk processing: Better operational ratios are required to amend the yields and

abridge wastage, lessen fat/protein losses during processing, control production

costs, save energy and broaden shelf life. The adoption of GMP (Good

Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points)

would help produce milk products adapting to the international standards.

3. Packaging: Another area that can be improved is the range of packing machines

for the manufacture of butter, cheese and alike. Better packaging can assist in

retaining the nutritive value of products packed and thus broaden the shelf life. A

cold chain distribution system is required for proper storage and transfer of dairy

products.

4. Value-added products: There's vast scope for value-added products like desserts,

puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets to

capture the dairy market in India.

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The Indian dairy industry has aimed at better management of the national resources to

enhance milk production and upgrade milk processing involving new innovative

technologies. Multinational dairy giants can also make their foray in the Indian dairy

market in this challenging scenario and create a win-win situation for both.

India's Milk Product Mix

Fluid Milk 46.0%

Ghee 27.5%

Butter 6.5%

Curd 7.0%

Khoa (Partially Dehydrated Condensed Milk) 6.5%

Milk Powders, including IMF 3.5%

Paneer & Chhana (Cottage Cheese) 2.0%

Others, including Cream, Ice Cream 1.0%

Overview of the Indian Dairy Sector

The country is the largest milk producer all over the world, around 100 million

MT

Value of output amounted to Rs. 1179 billion (in 2004-05) (Approximately equals

combined output of paddy and wheat!!)

1/5thof the world bovine population

Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows)

Immensely low productivity, around 1000 kg/year (world average 2038 kg/year)

Large no. of unproductive animals, low genetic potency, poor nutrition and lack

of services are the main factors for the low productivity

There are different regions – developed, average, below average (eastern states of

Orissa, Bihar and NE region) in the dairy industry.

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Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex

Body in Karnataka representing Dairy Farmers' Co-operatives. It is the second 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 and Milk Products. The Brand 'NANDINI' 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.

The first ever World Bank funded Dairy Development Program in the country started in

Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The

AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with

the financial assistance from World Bank, Operation Flood II & III. The dairy co-

operatives were established under the ANAND pattern in a three tier structure with the

Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions

at the middle level to take care of the procurement, processing and marketing of milk and

the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector

at the State level. 

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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 m

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. Ember Milk Unions is

monitored by the Federation. While the marketing of all the Milk.

GROWTH PROCESS

The growth over the years and activities undertaken by KMF is summarized briefly

hereunder:

    1976-77  2009-2010(Upto Jul'09)

 Dairy Co-operatives   Nos   416 11542

 Membership    Nos  37000 2018788

 Milk Procurement    Kgs/day  50000  3668314 / Peak Proc.40.41 LKPD

 Milk Sales    Lts/day  95050  2377364 / Curds:2.27LKPD

 Cattle Feed Consumed   Kgs/DCS   220 3046

 Daily Payment to Farmers   Rs.Lakhs   0.90 449

 Turnover   Rs.Crores    3135.00

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COMPANY PROFILE

The Bangalore Milk Union Ltd., (Bamul) was established during 1975 under Operation

Flood II by keeping “Amul” as its Roll Model. At present Bamul has Bangalore Urban,

Bangalore Rural & Ramanagaram Districts of Karnataka State as its area of operation for

Milk Procurement and selling Milk in part of Bruhath Bangalore Mahanagara Palika

(BBMP) area. Since its inception the Union is constantly striving further for dairy

development and marketing activities in its milk shed area.

OBJECTIVES

To organize Dairy Co-operative Societies at Village level and dissemination

of information like good dairy animal husbandry and breeding practices &

Clean Milk Production through Extension Services.

To provide assured market & remunerative price for the milk produced by the

farmer members of the co-operative societies.

To provide technical input services like veterinary services, artificial

insemination, supply of balanced cattle feed & Fodder seed materials etc., to

milk producers.

To facilitate rural development by providing opportunities for self-

employment at village level, thereby preventing migration to urban areas,

introducing cash economy & opportunity for steady income.

To provide quality Milk and milk products to urban consumers at competitive

prices.

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VISION AND MISSION STATEMENTS

VISION:

“WISH TO GROW INTO A MODEL MILK CO-OPERATIVE”.

Bangalore Milk Union Limited(BAMUL) is the biggest milk union in South India, fully

owned and managed by milk producers of Bangalore Rural and Bangalore Urban districts

of Karnataka state. Since its inception in 1975, the union is constantly striving to further

the diary development and marketing activities in its milk shed area.

MISSION:

This co-operative milk producer’s organization is to eliminate middle man and organize

institution owned by the milk producers themselves, by employing professionals, achieve

economies of scale and to ensure maximum returns to the milk producers, at the same

time providing wholesome milk at reasonable price to the urban consumers ultimately,

the complex network of co-operative should build a strong bridge between masses of

rural producers and millions of urban consumers and achieve a socio-economic

revolution in the vicinity of the territory.

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BAMUL at GlanceAn ISO-22000:2005 & ISO-9001:2000 Certified

Procurement & Input

Inhabited Villages 2,611

Milk Producer Members 3,25,854

Dairy Co-operative Societies 1,708

Milk Procurement Routes + BMC Routes 93+13

Artificial Insemination Centers Single 259

Cluster 96

Processing Plants Capacity Procurement

Bangalore Dairy 6,00,000 LPD 7,30,125 KPD

Anekal Chilling Center 60,000 LPD 57,075 KPD

Byrapatna Chilling Center 60,000 LPD 96,508 KPD

Doddaballapura Chilling Center 60,000 LPD 78,971 KPD

Hosakote Chilling Center 1,50,000 LPD 1,25,965 KPD

Solur Chilling Center 60,000 LPD 93,712 KPD

Vijayapura Chilling Center 1,00,000 LPD 88,608 KPD

Kanakapura Chilling Center 60,000 LPD 86,699 KPD

Bulk Milk Coolers 1,46,000 LPD 1,02,058 KPD

Marketing & Sales

Number of Distribution Routes 196

Retailers 1067

Whole Sale Dealers 35

Franchisee Outlets 30

Milk Parlors 29

Transporter Cum Distributor 14

Finance 2007-08

Total Share Capital (Rs in Lakhs) 1174.49

Annual Turnover (2008-09) (Rs in Lakhs) 50,824.00

Net Profit (2008-09) (Rs in Lakhs) 159.00

BACKGROUND

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On January 1st 1958 a pilot scheme to cater the Bangalore Milk Market, Department of

Animal Husbandry, Government of Karnataka was started Milk processing facilities &

Veterinary Hospitals at National Dairy Research Institute (NDRI). Later in 1962, The

Bangalore Milk Supply Scheme came into existence as an independent body. With the

great efforts by the then Hon’ble Minister for Revenue & Dairying, Government of

Mysore Sri M V Krishnappa, A joint venture of UNICEF, Government of India &

Government of Mysore was dedicated Bangalore Dairy to the people of Karnataka State

on 23rd January 1965 by the then Hon’ble Prime Minister Late Sri Lal Bahadhur Shastriji.

The Bangalore Dairy scattering over an area of 52 Acres of land, the Dairy had an initial

capacity to process 50,000 liters of milk per day. Bangalore Dairy underwent a

structural change in December 1975, handed over to Karnataka Dairy Development

Corporation (KDDC). Rural Milk Scheme of Mysore, Hassan & Kudige Districts was

started under Operation Flood-II and then transferred to Karnataka Milk Federation

(KMF) in May 1984 as a successor of KDDC. To cater to the growing demand for milk

by the consumers of Bangalore City, the capacity was increased to 1.5 lakh liters per day

under the Operation Flood-II during 1981 and later increased to 3.5 lakh liters per day

under Operation Flood-III during 1994.

As per the policies of the National Dairy Development Board (NDDB), Bangalore Dairy

was handed over to Bangalore Milk Union Ltd., (Bamul) on 1st September 1988. The

Union is capable of processing the entire milk procured, by timely implementation of

several infrastructure projects like commissioning of New Mega Dairy state-of-the-art

technology with a processing Capacity of 6.0 Lakh liters per day, new chilling centers,

renovation of product block etc.,

The milk shed area of Bamul comprises of 2611 revenue villages. As of now the Union

has organized 1696 Dairy Co-operative Societies (DCS) in 2,074 villages, thereby

covering 78% of the total villages in these two districts. In these DCSs, there are

3,27,176 milk producer members. Among them 99,603 members are women and 59,112

members belong to Schedule Caste and Schedule Tribes.

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The philosophy of this co-operative milk producers’ organization is to eliminate

middlemen and organize institutions owned and managed by milk producers, by

employing professionals. Achieve economies of scale of rural milk producers by

ensuring maximum returns and at the same time providing wholesome milk at reasonable

price to urban consumers. Ultimately, the complex network of co-operative organisation

should build a strong bridge between masses of rural producers and millions of urban

consumers & achieve a socio-economic revolution in the village community.

Bamul has been registered under MMPO by Central Registration Authority. Today, the

Union has become the biggest Milk Co-operative Union in Southern India. Bamul has

been certified for ISO 22000:2005 & ISO 9001-2000 for quality management and Food

Safety Systems.

In recognistion to these efforts and achievements, the National Productivity Council

(NPC) of Government of India has conferred “Best Productivity Award” FIVE TIMES

and “Energy Conservation Award” by Bureau of Energy Efficiency (BEE) to the

Union.

ORGANIZATION STATUS

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The member producers and their Dairy Co-operative Societies (DCS) are the vital

constituents of the Union and their progress is the judging yardstick on the efficiency of

the Union’s operation. Hence the maximum importance has been given to their

development. The Union is making intensive efforts over the years to organize DCSs in

more and more villages of the three districts in the milk-shed area.

Importance has been given to enroll more and more milk producers in the villages as

members of these DCS’s. While enrolling these members, more emphasis is being

accorded to enroll more number of women members and to organize more women

managed DCSs under STEP (Support to Training and Employment Program for Women).

It is heartening to note that there is an active participation of women/ weaker sections of

the society in all the dairy development activities of the Union. They have become

mainstay of all the developmental programs of the Union. This has resulted in the buildup

of economical benefits to the most vulnerable sections of the rural mass.

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As on March 2009 in these DCS , there are 3,25,854 milk producer members are

enrolled and out of which 1,02,842 are women and 42,452 members belong to

Schedule caste and 15,776 members belongs to schedule Tribes.

MILK PROCUREMENT

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The Milk produced by 89,537 farmers at village level will be collected every day

morning and Evening at DCS. Under Clean Milk Production programme, to

maintain the freshness & quality of the milk 85 Bulk Milk Coolers covering 243

DCS of Total Capacity 1,46,000 Lts were installed at DCS level. During the year

the Unions daily average milk procurement is 7.30 Lakh Kgs, which works out to be

428 kgs per day per DCS. The milk procurement has increased by 2.74 % when

compared to the last year.

Bamul is offering the most remunerative milk procurement price to member

producers. The operational efficiency is reflected on procurement prices paid to the

member producers. The average milk procurement price paid during the year was Rs.

13.17 for every Kg of Milk supplied to the Union. Which is 80% of total cost of

production.

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Milk collected at DCS will be transported to Chilling Centers, through 93 Milk

Procurement Can Routes, by traveling 15,054 KM’s every day. 13 Bulk Milk Cooler

(BMC) Routes are also in operation, which collects milk from 85 BMC centers of 243

DCS directly transported to Bangalore Dairy through insulated tankers.

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INFRASTRUCTURE DEVELOPMENT:

The strategy of Bangalore Milk Union is “Procure More, Sell More & Serve More” and

reaping the benefits of economies of scale. In order to realize this strategy, the Union has

implemented the following projects so that more and more milk can be procured and

processed. This will help us to serve our producer members by passing on the maximum

benefits, we are consciously adopting the growth-oriented strategy of helping our

producers to grow by ourselves growing constantly.

Mega Dairy with a capacity to process 6 lakh litres of milk per day expandable to 10 llpd

has been built by investing Rs. 38.70 crores obtained as term loan from National Dairy

Development Board. The Mega Dairy, has latest state-of-the-art technological facilities

in dairy processing and the Union will have the ability to manufacture milk and milk

products to world class standards.

Although Bamul sets standards for its products for better serve to customers, it was not

possible to keep the standards stability due to manual operations. In designing mega

dairy, Bamul looked towards an automated system that would allow it to achieve

consistent quality parameters for each product. Energy and manpower would also be

more effectively optimised and controlled and all plant equipment would be integrated.

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NEW Projects:

Bamul has planned to convert Hosakote Chilling Center into a 2.0.LLPD Capacity Dairy

with an investment of Rs.2427.00 Lakh and a New Product Block at Bangalore Dairy

Premises with an investment of Rs. 2033.00 Lakhs by the end of 2010.

Bamul has SEVEN Chilling Centers geographically located around Bangalore and 82

Bulk Milk Coolers at DCS Level. Milk Product Block within the campus to manufacture

Butter, Ghee, Peda, Flavoured Milk, Spiced Butter Milk, Paneer, Set Curds etc.,

FINANCE:

The Union had an approximate turnover of Rs. 508.24 crores in the year 2008-09 as

against Rs. 452.05 Crores for the year 2007-08. Union has earned a approximate Net

profit of Rs. 1.59 Crores for the year 2008-09 as against Rs. 3.44 Crores during 2007-08.

This decline in Net Profit is due to increase in Milk Procurement Price to Milk Producers.

TECHNICAL INPUT SERVICES:

Bangalore Milk Union is providing various Technical Input & Extension Services to the

milk producer members & their Dairy animals through ELEVEN Camp Offices situated

in each Taluk i.e., Anekal, Bangalore Head Office (Bangalore South), Yelahanka

(Bangalore North), Channapattana, Devanahalli, Doddaballapura, Hosakote, Kanakapura,

Solur (Magadi), Nelamangala & Ramanagara. From these camps the Technical Input

services like Weekly Mobile Veterinary Service, Emergency Veterinary Service,

Artificial Insemination Service, Periodical Vaccinations, Balanced Cattle Feed Sales,

Mineral Mixture Sales, Fodder development and Fodder Seed Production, Clean Milk

Production practices, Extension Services for Cattle Feeding, breeding, insurance and milk

production etc., will be carried over.

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ANIMAL HEALTH AND OTHER ACTIVITIES

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ANIMAL HEALTH

The Union is taking special care to promote the health of the cattle of member milk

producers. Veterinary facilities have been extended to all the DCS. Mobile veterinary

routes, emergency veterinary routes, Health camps, vaccination against foot & mouth

disease and thaileriosis diseases, etc., are being regularly done. Regularly Deworming is

also done for the cattle. There is also a backup of First Aid Services to needy DCS’s.

Particulars 2004-05 2005-06 2006-07 2007-08 2008-09

MVR Cases Treated 389835 151221

Health Camp cases Treated 81545 128174 149565 166198

Emergency Cases Treated 53483 68616 63818 70735 70420

F& M Vaccination 570248 468461 377654 430431 373107

Rakshavac 25565 20052 13675 13395 18094

ARTIFICIAL INSEMINATION

Artificial Insemination (AI) has been the main functional tool in dictating this upsurge of

development of Dairying in Bamul. Farmers have taken up cross-breeding from way

back in 1962. The Union has surveyed and appropriately located AI centers based on

cattle population. It is also popularized the idea of cluster AI centers and replace the

Single AI centers in a phased manner. The use of progeny tested semen from “Nandini

Sperm Station” is also giving a further boost to the breeding activities.

Particulars2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

No. of Single AI 421 353 251 259

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Centers320 248

No. of AI Done 1,98,183 1,88,768 1,66,614 1,27,320 1,11,536 1,12,740

No. of Cluster AI

Centers28 52 64 89 94 96

No. of AI Done 52,188 96,760 1,38,895 1,69,950 1,69,185 1,92,207

Total AI Done 2,50,371 2,85,528 3,05,509 2,97,270 2,80,721 3,04,947

To reduce infertility in cattle, a frontal attack has been continuously attempted by

conducting Special Infertility Camps under the expert guidance and by the use of

infertility connected drugs.

During 1999-2000, a Vertical Silo of 10,000 liter capacity for storing Liquid Nitrogen has

been installed under TMDD program in collaboration with National Dairy Development

Board and Karnataka Milk Federation. In addition this facility is being used for

supplying liquid nitrogen to neighboring Unions and also to Department of Animal

Husbandry. This has helped in protecting the quality of semen straws, thereby

considerably increasing the probability of conception during artificial insemination of

cattle.

CATTLE FEED & FODDER DEVELOPMNET

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The Union is implementing several programs to increase milk production and also to

reduce the cost of milk production in the milk shed area. Balanced cattle feed is being

procured from the Cattle Feed Plants of KMF for distribution among member producers.

Fodder seeds are distributed to member producers at subsidized rates. In addition to this,

technical advice, Silage Demonstrations, Azzolla Demonstrations and Straw Treatment

Demonstrations are also being conducted at DCS level. Chaff Cutters are supplied at

subsidized rates.

Cattle Feed Sales:

Particulars 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

CF Sales (in MT’s) 19451 20380 28515 29813 33359 37691

A Seed Processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs.

The Union is catering to the Seed production needs of many Unions in Karnataka and

also of Southern India.

YASHASVINI HEALTH INSURANCE:

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Yashasvini Health Insurance Scheme was muted by Government of Karnataka during the

year 2001-02. This scheme was implemented by Cooperative department, Members of

Co-operative Societies and their family members are the beneficiaries of this scheme.

The annual premium is Rs. 120/- per beneficiary. All major hospitals are adopted for

this scheme, all types of surgery will be covered under this health scheme. Bangalore

Milk union has covered 1.50 Lakh beneficiaries under this scheme by contributing Rs

30/- towards premium per beneficiary.

CATTLE INSURANCE:

Bangalore Milk Union is providing Insurance Coverage to the Dairy animals in

collaboration with United India Insurance Ltd., 40,238 animals are covered under this

Insurance. The annual premium is 2.22% of the value of the animal. 50% of the annual

premium of Rs. 122.99 Lakh was borne by bamul.

IN THIS MILLENNIUM

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We want to become not only the largest Union, but also become one amongst the best-run

milk unions in the country. The Union is aware of the challenges of the new private

entrants, who are mainly thriving on unfair trade practices. They procure milk at least

cost, without bothering about the welfare of the producers and without extending any

technical inputs for improving milk production. They market milk by resorting to

unhealthy and unethical practices deceiving the unsuspecting consumers. The Union

wants to counter this in a positive manner by trying to improve its efficiency of operation

and market promotion. It wants to become well trenched in the market as market leader.

It wants to follow the strategy of cost-competitiveness, which is hard to match by the

competitors.

BAMUL COMPITATORS

Bamul has 86% market share. Its competitors are

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Heritage

Dolda

Nilgiris

KCA

Classic

Arokya

Swastika

Jersey

Tirumala

Taste me

A one

Aavin

Best milk

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PRODUCTS PROFILE

The Bangalore Milk Union is marketing milk and milk products in the brand name of

“Nandini” through 1067 retailers, 30 Franchisee Outlets, 29 Milk Parlors, 35 Whole sale

Dealers, 14 Transporter Cum Distributors being served by 167 distribution routes. The

key success factor of Bamul in becoming a market leader is the narrow price spread

maintained between purchase & sales, marketing higher volumes of milk. The volume of

sales plays a critical role in determining costs. Hence, the market strategy of Bangalore

Milk Union is to regard selling of market milk as its core marketing activity and to

concentrate its efforts in this direction to increase the volume of milk sales. The

impressive growth in the sale of milk by Bamul over the years is due to the persistent

efforts to maintain timely supply, maintaining quality and attending to the complaints of

consumers and agents with prompt follow-up action.

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Bamul is also organizing Consumer Awareness Programme as a part of Market

Development to create awareness of “Nandini” Milk through personal contacts, Door to

Door campaigns, Organizational Meetings, School Children Mega Dairy Plant visit etc.,

are conducting regularly.

TYPES OF PRODUCTS

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NANDINI TONED MILK:

Karnataka’s favorite milk, Nandini Toned Milk.

Pure milk containing 3.0% Fat and 8.5%

SNF(Solids-not-Fat). Available in 250 ml, 500 ml, 1

ltr and 5 ltr packs. Better to use within a day from

the date of pack.

NANIDINI HOMOGENIZED TONED MILK:

Nandini Homogenized Milk is pure which is

homogenized and pasteurized containing 3.5% Fat &

8.5% SNF. Consistent right through, it gives you more

cups of tea or coffee and is easily digestible. Available

in 250 ml,500 ml,and 1 ltr packs. Better to use within a

day from the date of pack.

NANDINI FULL CREAM MILK:

Nandini Full Cream Milk. containing 6% Fat and 9 %

SNF. A rich, creamier and tastier milk, Ideal for

preparing home-made sweets & savouries. Available in

500ml and 1ltr packs. Apart from the Milk, the different

Milk Products are Curds, Butter, Ghee, Peda, Paneer,

Set Curds & Spiced Butter Milk are also sold.

NANDINI CURD:

Nandini Curd made from pure milk. It's thick and delicious.

Giving you all the goodness of homemade curds. Available

in 200 gms and 500 grms & 1 Kg packs. Nandini Butter

Rich, smooth and delicious. Nandini Butter is made out of

fresh pasturised cream. Rich taste, smooth texture and the

rich purity of cow's milk, makes any preparation a delicious

treat. Available in 100 gms, 200 gms and 500gms cartons

both salted and unsalted.

Curd Sales (Avg. KG's / Day)

4495

6566

8208 11139

14490

16054

32825

38312 49265

73369

75127

61696

1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

NANDINI GOODLIFE COW’s PURE MILK:

Cow’s Pure Milk, UHT processed, bacteria free in a

tamper-proof tetra-fino pack which keeps milk fresh for

60 days without refrigeration until opened. Contains

3.5% Fat & 8.5% SNF. Available in 500 ml Tetra Fio

pack, 200 ml, 1 ltr brick woth shelf-life of 120 days.

NANDINI GOODLIFE SMART-DOUBLE TONED

MILK:

Homogenized, double toned milk contains 1.5% Fat &

9% SNF. Suitable for a preparing tea/coffee,milk shakes

and milk delights for people leading a fitness conscious

lifestyle. Available in 500 ml Fino pack.

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NANDINI GOODLIFE SLIM:

Fresh pure milk that’s 99.5% fat-free and with 90%

SNF. Perfect for a healthy lifestyle among fitness

conscious people and senior citizens. Available in 500

ml Fino pack,200 ml,1 ltr Tetra brick packs with shelf-

life of 120 days.

NANDINI BUTTER MILK:

Nandini spiced Butter Milk is a refreshing health drink. It is

made from quality curds and is blended with fresh green

chillies, green coriander leaves, asafetida and fresh ginger.

Nandini spiced butter promotes health and easy digestion. It is

available in 200ml packs

NANDINI GHEE:

A taste of purity. Nandini Ghee, made from pure butter. It is

fresh and pure with a delicious flavour. Hygienically

manufactured and packed in a special pack to retain the

goodness of pure ghee.  Shelf life of 6 months at ambient

temperatures. Available in 200ml, 500ml, 1000ml sachets &

15.0 kg tins.

NANINI PURE MILK PEDA:

No matter what you are celebrating! Made from pure

milk, Nandini Peda is a delicious treat for the

family. Store at room temperature approximately 7

days. Available in 250gms pack containing 10

pieces each.

NANDINI BUTTER:

Rich, smooth and delicious. Nandini Butter is made out

of fresh pasturised cream. Rich taste, smooth texture and

the rich purity of cow's milk, makes any preparation a

delicious treat. Available in 100 gms (salted), 200 gms

and 500gms cartons both salted and unsalted.

NANDINI FLAVOURED MILK:

Sterilized flavoured milk, a nutritious and healthy drink and

an all- season wholesome drink available in 200 ml tetra slim

pack in different flavours like Badam, Pista, Mango,

Strawberry, Choco and Milkafe. Badam, Pista and Rose are

available in 200 ml bottle and Badam 200 m sachet also.

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NANDINI PANEER:

Tasty, wholesome and nutritious supplement a variety of

dishes .add paneer to make dishes creamy and mouth

watering. Specially packed 5 layer film & vacuum packed

to preserve its quality. Refrigerated storage is required &

available in 200 gm chiplets & 1 kg slap packs.

NANDINI KHOVA:

Made by evaporating milk. Contains min. 20% fat

used as basic material for preparation of sweets

like Peda, Kunda etc. available in 200 gm pack

and also in bulk.

NANDINI SET CURDS:

Available in 200 gm and 400 gm cups.

PRICE CHART OF NANDINI MILK AND MILK PRODUCTS

Sl.

No.

Products Name Package Rate to

the

Retailer

Discount

per pkt.

Rate

per pkt

MRP

per

lit/kg

1 TONED MILK 500 ML 7.72 0.28 8.00 16.00

1000 ML 15.44 0.56 16.00 16.00

6000 ML 89.76 3.24 93.00 15.50

Credit bulk/lit 16.00 16.00

2 DOUBLE TONED

MILK

500 ML 6.755 0.245 7.00 14.00

1000 ML 13.51 0.49 14.00 14.00

3 FULL CREAM MILK 500 ML 10.615 0.385 11.00 22.00

1000 ML 21.35 0.77 22.00 22.00

4 HOMOGENISED COW

MILK

500 ML 8.685 0.315 9.00 18.00

250 ML 4.825 0.175 5.00 20.00

5 CURDS 200 GMS 4.60 0.40 5.00 20.00

500 GMS 9.25 0.75 10.00 20.00

1000 GMS 18.50 1.50 20.00 20.00

Bulk loose/kg 18.50 1.00 19.50 19.50

6 GHEE 50 ML 13.182 1.318 14.50 290.00

31

100 ML 22.726 2.274 25.00 250.00

200 ML 43.636 4.364 48.00 240.00

500 ML 106.36 10.64 117.00 234.00

1000 ML 209.09 20.91 230.00 230.00

15 KG TIN 3697.80 97.20 3795.00 253.00

7 BUTTER

100 GMS 17.857 2.143 20.00 200.00

200 GMS 35.714 4.286 40.00 200.00

500 GMS(USB) 89.285 10.715 100.00 200.00

500 GMS(SB) 80.355 9.645 90.00 180.00

8 PEDA 250 GMS 49.11 5.89 55.00 220.00

25 GMS 5.357 0.643 6.00 240.00

9 KHOVA BULK/KG 187.50 22.50 210.00 210.00

10 BUTTER MILK 200 ML 3.40 0.60 4.00 20.00

11 CREAM 200 GMS 23.75 1.25 25.00 125.00

500 GMS 57.00 3.00 60.00 120.00

BULK/KG 114.00 6.00 120.00 120.00

12 SET CURDS 200 GMS 8.50 1.50 10.00 50.00

400 GMS 17.00 3.00 20.00 50.00

13 PANEER(6% Fat) 1000 GMS 118.75 11.25 130.00 130.00

14 GOOD LIKE SLIM 500 ML 11.185 0.815 12.00 24.00

15 GOOD LIFE 500 ML 12.15 0.85 13.00 26.00

32

ORGANIZATIONAL STRUCTURE

33

Managing Director

General Manager

Marketing Administration Finance Production Purchase/Store

Manager Deputy Manager

Manager Manager Manager

Assistant Manager

Assistant Manager

Deputy Manager

Deputy Manager

Deputy Manager

Assistant Manager

AO/PRO/ PS/TO

Assistant Manager

Assistant Manager

PO/SO

Zonal Officer

Super-intendent

Accounts Officer

Technical Officer

Super-intend

Super-intend

Administrative Assistant-I

Super-intend

Diary Supervisor

Typist

MarketingAssistant

at

Administrative Assistant-II

AA Gr-I/IIIII

Diary Operators

Helpers Helpers Helpers Helpers

Helpers

Roles and responsibilities of MANAGING DIRECTOR.

The role of a Managing director (MD) is to design, develop and implement the strategic

plan for their company in the most cost effective and time efficient manner

RESPONSIBILTIES

The Managing director of BAMUL is responsible for both the day-to-day running

of the company and developing business plans for the long term future of the

organization.

He is accountable to the board and the shareholders of the company.

He is responsible to motivate his employees time to time to get things done from

them.

He needs to manage everything. That includes the staff, the customers, the budget,

the company's assets, the liabilities and all other company resources to make the

best use of them in order to increase the company's profitability.

He reports weekly to the board of directors of KMF about how the company ais

doing. The board of directors will offer suggestions and ideas as per how to

improve the company, its his responsibility to implement it and improve the

company.

34

Roles and responsibilities of GENERAL MANAGER (ADMIN)

His responsibility is mainly managing and coordinating work of the process

managers working under him.

His duties also comprise devising and planning of company policies, and

discussing them with the top management for final approval.

He develops guidelines of operation for certain processes, which are directly

under his authority.

He has to prepare elaborate reports of the functioning of all the company

departments, and submit the reports to the top management for practice

performance review.

He even plays an important part in recruiting and training process of managers

under him.

The General Manager further takes care of Marketing, Administration, Finance,

Production and Purchase department.

35

PURCHASE DEPARTMENT

Hierarchy

6

36

Manager

Assistant Manager

PurchaseOfficer

Super-intend

Case Workers

Typist

Helpers

2

2

Roles and Responsibilities of PURCHASE MANAGER

The role of a Purchasing Manager is buying or approving the acquisition of goods and

services needed by the company.

RESPONSIBILITIES

Searching reliable vendors or suppliers to provide quality goods at reasonable

prices.

Negotiating prices and contracts

Assign a PO number and forward order to appropriate vendor

Reviewing technical specifications for raw materials, components, equipment or

buildings

Determining quantity and timing of deliveries

Notify original orderer of receipt

Forward report to Accounting

Roles and Responsibilities of PURCHASE ASSISTANT MANAGER

To assist Purchase Manager in purchasing & Accounting of all types of stores

Roles and Responsibilities of PURCHASE OFFICER

37

To assist the Manager (Stores & Purchase) in purchasing, accounting and issue of all types of stores

Roles and Responsibilities of SUPERINTENDENT

To supervise the work done by the case workers and be a intermediate between case

workers and purchase manager

Roles and Responsibilities of CASE WOKERS

To prepare tenders and quotation to vendors and all other important documents required

by purchase department. Look after the procurement of raw materials and send it to stores

for storage

Roles and Responsibilities of TYPIST

To type tenders and quotation and other all important documents

Roles and Responsibilities of HELPERS

To bring raw materials and load it in stores department.

38

INTRODUCTION

The most important thing needed in the any company for production of finished goods is

raw materials. The purchase of proper raw materials is taken care by the purchase

department with concerned to marketing department.

BAMUL has a well maintained purchase department headed by well-experienced

purchase manager and assisted by assistant manager and so on. They fulfill the need of all

the departments by providing required raw materials.

If the materials to be purchased are of value less than Rs.1 lakh, the quotations are

collected from suppliers or the enquirer of Bamul. If the quality of the material is good,

the purchase committee negotiates the price with the supplier. The purchase committee

comprises of managing director and section heads of each departments.

If the material to be purchased are of value more than Rs.1 lakh, then a tender notice is

published in the newspaper. The producer to bid for the tender is mentioned in the notice

itself and selection of the supplier is done on the basis of low-bid with the necessary

condition that the material complies as per the desired quality. Bamul doesn’t

compromises on quality of the materials.

39

PURCHASE PROCEEDURE

=>MATERIALS VALUE LESS THAN A LAKH:

Documents required: Indent along with note approved by the Managing

Director.

Steps involved while placing the order:

1. Enquiry will be made with the registered Manufacturers/ Dealers/ Distributors/

Suppliers etc.

2. Preparing comparative statement of the offers received.

3. Samples quality checking wherever samples obtained.

4. Rate analysis.

5. Placing before the purchase committee for decision if the total purchase value

exceeds Rs.25,000/- and then obtaining approval of the Managing Director.

Below Rs.25,000/- direct approval from the Managing Director and also

depending upon the situations.

6. Placing purchase order/ work order.

7. Quality checking after receipt of the material.

8. Acceptance.

9. Payment as per terms and conditions.

40

=>MATERIAL VALUE MORE THAN A LAKH:

Document required: Indent, note approved by the Managing Director

with IBP.

Steps involved while placing the order:

1. Submitting Tender Notification to the Tender Bulletin Officer Govt. of Karnataka

for approval to invite the Tenders.

2. Inviting tenders through reputed news papers.

3. Opening of Tender Technical Part-I.

4. Preparing of evaluation report for Part-I by Tender Bid Appraisal Committee.

5. Evaluation/ review of Tender Technical Part- I by tender inviting authority

committee.

6. If the Technical Tender passes by the Tender inviting authority committee

commercial Tender Part- II will opened.

7. Preparing comparative statement of the commercial offer to identify the L-I.

8. Rate Negotiation with L-I.

9. Preparing proceedings of the tender inviting authority committee meeting and got

it approved by the Board.

10. Placing Purchase Order/ Work orders.

11. On receipt of material quality checking and acceptance.

12. Payment as per terms and conditions.

41

Functions of Purchase Department:

Evaluating and Rating of suppliers.

Selecting of suppliers.

Finalization of terms of purchase.

Placement of purchase orders.

Follow-up

Approval of payments to suppliers.

PRODUCTION DEPARTMENT

Hierarchy:

42

Manager

Deputy Manager

Assistant Manager

Technical Manager

Diary Supervisors

Diary Operators

32

40-50

8

15

20

Roles and Responsibilities of PRODUCTION MANAGRER

The role of production managers is to coordinate the resources and activities required to

produce milk and milk products.

RESPONSIBILITIES

Planning the production schedule within budgetary limitations and time

constraints.

Assembling and controlling production process.

Inspecting samples of finished goods and recording defects

Working out the human and material resources needed

Estimating costs and setting the quality standards

Monitoring the production processes and adjusting schedules as needed

Selection and maintenance of equipment

Monitor product standards

Working with managers to implement the company's policies and goals

Ensuring that health and safety guidelines are followed

Supervising and motivating a team of workers

Reviewing the performance of subordinates

Identifying training needs

Roles and Responsibilities of DEPUTY PRODUCTION MANAGRER

43

Helpers 10-15

To assist the Production Manager and ensure proper production of milk and milk

products

Roles and Responsibilities of ASSISTANT PRODUCTION MANAGRER

To assist the Production Manager and Deputy Manager and ensure proper production of

milk and milk products

Roles and Responsibilities of TECHNICAL PRODUCTION MANAGRER

To look after all technical issues in the production department and assist Production

Manager in such issues.

Roles and Responsibilities of DIARY SUPERVISORS

To supervise the work of Diary operators and Helpers in the production of milk and milk

products

Roles and Responsibilities of DIARY OPERATORS

To control the flow of production process .i.e. from procurement of milk, processing it

and producing milk products and also packaging.

Roles and Responsibilities of HELPERS

They help the Diary Operators in their work and all other small work required in

production department

44

INTROCUCTION

Production Department of BAMUL is the most important and largest department in the

organization performs the function of processing the milk and transforming the raw

materials into finished goods with the help of 5 M i.e. Men, Material, Money, Machine

and MILK.

BAMUL has well established production department maintained by the production

manager with help of deputy manager and assistance of assistant manager. The whole

process of processing milk is totally computerized. The whole process is carried on by

computers.

OBJECTIVES:

Execute co-ordinate, organize and monitor the production activities.

Increase the input as far as possible.

Decrease the cost of production and wastages in production as much as possible.

Ensure process, control and quality of products manufactured.

Also ensure that the production meets the planned requirements within stipulated

time.

45

PRODUCTION PROCESS

First of all the milk is collected from farmers by the Milk Co-operative Societies which is

set by the BAMUL for collecting milk. From here the processing of milk starts. It is

processed to preserve the life of the milk, as we know that the life of milk is only 6 hrs.

There are four steps of processing the milk.

1. Chilling:

The milk collected is sent to the chilling centre, the milk is immediately

chilled to 4-6 degree C and stored in storage tanks.

2. Quality Check:

The chilled milk is brought in the company in tankers which is tightly

packed. The quality centre tests the milk and verifies the result. The result

received by chilling centre should tally with the result obtained by quality

check. Even if there is slightest difference in the result, the whole tank of

milk is rejected.

3. Pasteurization:

The milk is then pasteurized. The pasteurization is usually done in two

ways. One is by LTLT (Low Time Long Temperature) method, which is

done by heating the milk at 63 DC and another method is HTLT (High

Time Low Temp), which is done by heating the milk at 72 degree C for 15

to 20 seconds. BAMUL uses the second method. After heating the milk

46

and holding it for 15 seconds the milk is rapidly cooled at the temperature

of 7 degree C. Pasteurization helps in protecting the milk from attracting

bacteria due to the rapid cooling of milk after heating. Therefore it is

healthy to drink pasteurized milk.

4. Standardization:

Next process is standardization, here required amount of Fat and SNF is

added. This is done because one cannot drink the milk directly collected

from breeds of cow and buffaloes as it may differ in its composition. To

uniform the composition of milk standardization is done. In plant there are

3 Standomat to mix the nutrients.

5. Packing:

The milk is now packed in plastic pouches/ tetra packs /bulk vending etc.

There are 60 machines which helps in packing 16 lakh packets per day.

Then it is sent to cold storage until dispatching to market.

In BAMUL production department works 24/7 with different shifts to maintain the

quality of the milk and supply us good quality and fresh milk.

FUNCTIONS:

Procurement of raw material.

Maintain and produce standard quality products

Produce zero bacteria milk.

Maintaining and trying to reduce cost of production

Using of advanced technology

Maintain inventory of both raw materials and finished products

Produce different quality products to meet the market needs and wants

47

PRODUCTION OF MILK

48

MILK IS UNLOADED TO RAW MILK SILOS (4 SILOS WITH A CAPACITY OF 1 LAKH LITRES)

EACH TANKER IS WEIGHTED AT THE WEIGH BRIDGE & THE SAMPLE MILK IS TESTED IN ELECTRONIC FAT TESTER

HEATING AT 78 DEGREE C AND MAINTAINED AT 45 DEGREE C

CHILLING OF MILK AT 5 DEGREE IN PASTEURIZE

AFTER PROCESSING, THE MILK IS CONVERTED INTO 4 TYPES OF MILK I.E. FCM, TM, CTM AND HCM

NEXT THE MILK IS SENT FOR PACKING SECTION FOR PACKAGING.

HMST WHERE PASTEURIZED MILK IS STORED

DISPATCHING SECTION, MILK IS KEPT AT 5 DEGREE C IN THE COLD

PRODUCTION OF BUTTER

PRODUCTION OF GHEE

CREAM TANKS AT 10DC

CONTINUOUS BUTTER MAKINGBUTTER

PACKED AND STORED IN DEEP FREEZERS AT 20DC

49

RAW MILK PRE- HEATED TO 40-50 DC CREAM SEPARATOR CREAM

PASTEURIZERS

BUTTER MELTED AT 120-130 DC

BUTTER OIL

GHEE BOILER 115-120DC

‘

MARKETING DEPARTMENT

Hierarchy

50

CLARIFICATION

PACKED AND STORED

Roles and Responsibilities of MARKETING MANAGER

The role of marketing manager is to develop the firm’s marketing strategy in detail. And

sell milk and milk products

Deputy Manger

Zone DMOffice DM Office (Trans) DM

Market Officer Senior

Dispatcher

Assistant Manager Accounts

Officer

Dispatchers Case workers

Marketing supervisor

Superintend

Clerks/ Case workers

Helpers

51

Manager

RESPONSIBILITIES

To achieve marketing goals so as to achieve organizational objectives by higher

sales

With the help of subordinates, including product development managers and

market research managers, he estimates the demand for products and services

offered by the firm and its competitors.

He identifies potential markets—for example wholesalers, retailers, government,

or the general public.

He develops pricing strategy to help firms maximize profits and market share

while ensuring that the firm’s customers are satisfied.

In collaboration with sales, product development, and other managers, he

monitors trends that indicate the need for new products and services, and he

oversees product development.

He works with advertising and promotion managers to promote the firm’s

products and services and to attract potential users.

Roles and Responsibilities of DEPUTY MARKETING MANAGER

To assist the Marketing Manager and ensure proper distribution of milk and milk

products

Roles and Responsibilities of OFFICE DEPUTY MARKETING MANAGER

He takes care of all paper work directed by Marketing manager and also does the

tasks delegated by marketing manager.

Deals with retailer’s, wholesaler’s and customer’s problems

Roles and Responsibilities of MARKET OFFICER

To assist the Deputy Manager regarding complaints, supply mistakes etc. and look after

superintendent’s work

52

Roles and Responsibilities of SUPERINTENDENT

To supervise work of retailers, regarding sales, payments, extension, appointing

etc.

They report regarding all types of complaints regarding mistakes in supply, indent

etc to Market officer.

Roles and Responsibilities of CLERKS/ CASE WORKERS

They receive orders from retailers and make the products available for dispatching and

prepare other all paper works concerned to retailers and marketing department.

Roles and Responsibilities of OFFICE TRANSPORT DEPUTY MANAGER

He looks after all the dispatching work. To check whether all packages are properly packed and sealed or no. To check whether the quantity of materials matches with the order given by

retailers

Roles and Responsibilities of SENIOR DISPATCHER

They supervise the work of dispatchers.

Roles and Responsibilities of DISPATCHER

They do the loading of material in the vehicles of vehicle staff in the company premises

Roles and Responsibilities of ACCOUNTS OFFICER

He takes care of billing of vehicle staffs for transportation of goods and other financial

things of marketing department.

INTRODUCTION

Marketing department is required to help to reach the products produced by the diary to

the consumers. In each organization it is one of the most important departments which

53

takes care of marketing and supply of the products. It also handles the customer

problems.

BAMUL has a well established marketing department controlled by the Marketing

Manager, who takes care of marketing and selling of milk and milk products. He is

responsible for preparing plans, strategies for selling to the target market in order to

achieve the organizational objectives by achieving marketing goals. He also forecasts the

demand for their products in the market.

BAMUL is mainly marketing the milk and milk products. It gives priority to selling of

milks and curds to the consumers and in addition it produces many milk products. It is

the one company which is solely dedicated to customer satisfaction than earning profit by

supplying pure, non-contaminated, good quality milk. Most importantly BAMUL is a

“No Profit No Loss” organization. Bamul has 86% market share.

The marketing department is always an open ear for customer problems. It analysis the

problem in detail and provide best solution to the customers. May it be the price or

miscommunication between retailer and customer or any problems of retailer etc. It’s

priority is to solve the customer problems and see that it doesn’t occur again.

OBJECTIVES

The primary objective of marketing is to satisfy the customer to organize the sales

department in well mannered because “ CUSTOMER IS THE KING OF MARKET”.

To provide utmost satisfaction to the customers

54

To create market awareness and preference for nandini

Customer retention

Balance the demand and supply of milk products

Prepare sales budget

Formulate strategies to compete with it competitors

Always ensure position of nandini as market leader in milk

Achieving the sales target set in integrated business plan union

Customer complaint re addressed within 12hrs

Improving the customer satisfaction index

Meeting the needs of channel members

MILK DISTRIBUTION

Milk is distributed twice in a day in 3 ways.i.e

1) regular routes

2) TCD (transport cum distribution)

3) Cash and carry routes

MORNING

Through regular routes, in the morning milk is carried by 152 routes and 11 cash

and carry. Daily morning approx 5.7 lakh litres of milk are distributed and 70,000 kgs

curds.

AFTERNOON

Milk is carried by 37 routes and 5 cash and carry routes. Total sales in the

afternoon is approx 1, 11,000 liters of milk and 73,000 kgs curds and through TCD-

96,000 liters milk is distributed.

The orders are placed by retailers for the milk and milk products. Marketing department

receives the orders and supplies as per the orders received. There are 50 dispatchers in the

company who supervises loading of milk and milk products within the company which is

done by vehicle staff. Retailers collect the milk and milk products twice a day.

55

At present there are

1057 retailers

7 wholesale distributers

21 TCDs

28 milk parlours

34 franchise outlets.

Retailers are appointed on the basis of organization norms. Retailers are selected by

group decision. The retailers collect milk twice in a day from the diary. After the sale is

done, retailers remit the money from Banks. The retailers can involve in this scheme in

two forms.

Challan system:

The mode of getting into this scheme is by making a minimum deposit of

Rs.20, 000 the organization prepares daily bank challans based on their supply and bank

sends the paid challens through the courier to the diary. Accordingly, the retailers make

payment in concerned bank. If the retailers fails to remit the sales proceeds, the next day

the supply o milk is stopped and the necessary actions to be taken to recover the same.

Cheque Basis:

The mode of getting into this scheme is by making a minimum deposit of

Rs.50,000. The retailers will issue the cheques based on their supply, for the milk and

milk products. The same cheques will be presented by diary to the concerned banks for

realization of cash. If any cheque is bounced then the milk supply of the retailer will be

immediately stopped and necessary action is taken to recover the same.

Cash and carry:

They can get the milk and milk products by directly paying to vehicle staff.

Medium of promotion

Wall painting

Vehicle painting

Glow sign boards

56

Tarpaulin carry bags

Banners

New milk parlour fabrication

Walk-in cold storage

Gifts to channel members

POP material

Mediclaim to channel members

Event sponsoring

New product launch

Dairies/ calendars to channel members

Children’s competition or cultural programmes

For maintaining cold chain the following things are given to the retailers-

Bottle coolers

Insulated boxes

FUNCTIONS

Conducts customer survey on interval basis to take feedback from the customers

on the quality of the milk and milk products.

Develops proper budget for advertising and sales promotion.

Plan the advertising campaign and make effective.

57

Ensure proper functioning of sales and distribution channel.

Take required steps to improve the market share.

FINANCE DEPARTMENT

Hierarchy

58

MANAGER FINANACE

GENERAL MANAGER

BILLS PAY ROLLS SALESAUDITP&I

DEPUTY MANAGER

DEPUTY MANAGER

ASST.MANAGER

ASST. MANAGER

ASST. MANAGER

ASST.MANAGER

Helpers

HelpersHelpers Helpers Helpers

INTRODUCTION

59

Finance department is that part of the organization from where the funds are ascertained

to keep the business move on. It is like heart of the organization. It is the most important

part of any organization.

BAMUL’s Finance department is well-maintained and controlled by the general manager

of finance. He looks after the whole finance department and checks out whether each

employee is doing his duty properly or no and also sees that, there is no manipulation in

accounts or misappropriation of funds.

OBJECTIVES

To help in achieving the business results

To asses the working capital requirements

To protect the financial interest of the company

To monitor the budget and budgetary control

To invest the funds judicially

Monitoring the funds collection and payments

To identify and reduce the ideal funds

To maintain adequate funds to carry out the business

Controlling the in flow and out flow of cash

To see that the company never suffer from lack of funds

Functions of P&I

60

It does weekly billing of milk purchase in two shifts at chilling centre and once in

a day at bulk milk cooling centre (720 center) and then payment is released

directly to the bank accounts of MPCs (DCS).

Payment of procurement contract charges for milk transportation from MPCs to

DCS and tanker contract bills from MPCs to main diary. It is fortnightly bills.

Bills pertaining to purchase of stores materials and input trading items required by

MPCs.

They maintain all the above in society/ individual accounts.

Payments per expenses under various schemes.

Role and Responsibilities of P&I people

The helpers will collect the bills from chilling centers, MPCs, DCS etc and will submit to

Assistant manager, the assistant manager then will check the bills and files it and submits

to Manager of finance for re- check and approval. The Finance manager will then send it

to General Manager for approval.

Functions of AUDIT SECTION

Preparation of IBP(Integrated Business Plan) once in 12 months and preparation

of monthly provisional P&L a/cs.

Preparation of Annual a/cs.

Finding of Income tax returns

Statutory audit of co-operative department

Submission of final a/cs to annual general body for approval

Seeking approval of annual general body for annual budget

Approval of financial a/cs.

Preparation and approval of statutory annual report.

Approval of Audit complaints report.

Role and Responsibilities of Audit people

61

The helpers have to give necessary files and information required by assistant manager.

Assistant manager should prepare the IBP and other financial statements and send it to

Finance manager for checking and approval. The same is sent to General Manager for

approval and he’ll will submit it during board meeting to the chairman as to show the

financial status of company.

Functions of BILLING SECTION

Case workers process the bills and send to superintendent then to Asst. Manager

and to Deputy Manager for approval and then Payment are released by Managing

director.

They prepare annual budget which is called as Integrated Business Plan, where in

they declare the activity qualified, value it and prepares financial outlay on

monthly basis.

Purchase part a/cs are maintained by Bills.

All bills are subject to budgetary allocation

Budget is approved by members of BOD and in annual general meeting.

Function of PAY ROLLS

Payment of salary is based on employee based masters as given by admin and

daily attendance as per biometric attendance certificate. Monthly salary bill is drawn in

ERP(Entrepreneual Resource Processing) accounting package.

Functions of SALES SECTION

The indent

Three types of collection- Cheque, Cash and carry and challans.

Maintains individual retailers a/cs

They give schedules to the retailers

DIVISION OF PROFIT

62

25% of profit is transferred to Reserve Fund. 2% of profit is paid as educational access to

co-operative department. Dividend is declared as act from 1% to 25% as payable on

shares. Balance of Profit is further divided, 65% paid as bonus to members and it is on

volume of milk purchased by us.

ADMINISTRATION DEPARTMENT

63

Hierarchy

Roles and Responsibilities of DEPUTY MANAGER

64

DEPUTY MANAGER

ASSISTANT MANAGER

AO/PRO/ PS/TO

SUPER-INTENDENT

ADMINISTRATIVE ASSISTANT-I

ADMINISTRATIVE ASSISTANT-II

CLERK CUM COMPUTER OPERATOR

HELPERS

Manage individual department members as directed by the G M.

Provide advice and consultation to other department members.

Deputize for the General Manager.

Contribute to the management of team processes and procedures.

He also takes care of construction of salary of employees

Roles and Responsibilities of ASSISTANT MANAGER

Assistant manager is typically given management authority to make key decisions

quickly, is heavily involved in training of other staff, and perform paperwork duties.

He has to complete the tasks delegated to him by GM.

Assistant managers are trained in the knowledge on how to perform the functions

of General manager and to be a vital asset in supporting the overall management

of a specific department in BAMUL

Roles and Responsibilities of SUPERINTENDENT

To supervise the work done by the case workers and be a intermediate between case

workers and General Manager

Roles and Responsibilities of ADMINISTRATIVE ASSISTANTS I and II

To assist the Deputy Manager (Admin) in all the administrative work.

Roles and Responsibilities of CLERK CUM COMPUTER OPERATOR

To do all paper work.

Takes care of the students doing in plant study

Prepares order letters and certificate for students doing project work

Prepares receipt for salary of employees etc.

INTRODUCTION

65

Administration department is like human resource department, it is mainly connected

with human relationship of the company. A sound, well organized human resource leads

to success and growth of the company. Thus administration department plays a very

important role in the functioning of the company.

OBJECTIVES

To maintain good relation between the top level management and middle level

management and with lower level management.

Recruitment and selection of employees for the jobs in the organization.

Proper orientation and induction of new employees

Effective molding of human resource

Providing reasonable compensation and remuneration

Building up employee morale.

Provision for better working condition and other facilities.

Achieve employees satisfaction and customer satisfaction.

RECRUITMENT POLICIES

Method of Recruitment as per the Karnataka Co-operative Societies Act of 1959 and rule

17 and as per Circular and directives issued from Registrar of Co-operative Societies

from time to time:

1) Recruitment by Direct recruitment.(Age limit 18 yrs to 33 yrs)

By giving vacancy ad to Employment exchange or News papers.

Competitive examination is taken

List is prepared as per order of merit by the Selection committee appointed

for the purpose.

Selection to the posts as mentioned in the Rules Book shall be governed in

accordance with the by-laws of the BAMUL.

2) Recruitment by promotion

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If a post is to be filled up by the promotion by selection of a person on

the basis of Seniority-cum-merit in all respects to discharge the duties of

the post from among the persons eligible for promotion as stipulated in

BAMUL subsidiary Rules-2003 and by any such rules as decided by

committee.

If suitable persons are not available for promotion in BAMUL. Expert

Panel Committee from time to time will decide for Recruitment of

Professionals to certain posts like DM, AM and other cadres.

Provision for Reservation

Appointment for the post shall be reserved for SC/ST/CAT-I and other categories of

backward classes to such an extent and in such manner as may be specified by the

government under clause(4) of article 16 of Constitution of India. There is provision even

for physically handicapped and ex-servicemen.

Provision for Women

The reservation for women shall be in accordance with the provision of government

orders from time to time. If eligible women are available for filling vacancies set apart,

such vacancies shall be filled up from among the same categories of male candidates.

SALARY STRUCTURE OF EMPLOYEES

Basic salary + Dearness Allowance + CCA + House Rent allowance and other

allowances at the rate as per prevailing rules and orders from time to time from

government.

PROMOTION

Here promotion is based on Seniority – cum – merit basis. Seniority shall be the sole

consideration from among the employees who all eligible for promotion. Even merit is

also considered most of the time.

SERVICE RULES of BAMUL

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There are certain service rules which the employees of BAMUL should follow, they are

as follows:-

1. Obligation to maintain secrecy.

2. Evidence before committee or any other authority.

3. Employees to promote the BAMUL interest.

4. Prohibition of participation in politics and also contesting for election.

5. Private trading.

6. To follow the rules and regulations of BAMUL.

7. To avoid misconduct in work place such as being disobedient, giving and taking

bribes, being absent without leave permission etc.

8. Employees not to seek outside employment.

TERMINATION of EMPLOYEES IN BAMUL

The employees will be terminated from BAMUL on the happenings of the following

events:-

1. If a permanent employee completes 58 yrs of age.

2. Expired while on service

3. Terminated from resign from service.

FUNCTIONS

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Recruitment of candidates.

Selecting of best suited and right person.

Training and development of employees

Framing of rules

Creating a good working environment.

Motivating the employees to work hard

Employee service and benefits

Compensation

Personal audit

Promotions and transfer

Wage and salary administration

Job analysis and job description

Sanction of increments.

Disciplinary action against misbehaviour of employees.

BENEFITS PROVIDED TO THE EMPLOYEES

Training is provided to all employees in their particular fields, conducted

at CTI, KMF and NDDB Erode/ Gujarat etc. the main aim of giving

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training is to gain knowledge and expertise in their work, which is helpful

to both employees and organization.

Canteen facilities are provided at very chap rate( meals at Rs.2 per head,

Rs.4 for contract laborers and Rs.10 for visitors.)

Conveyance allowance is given to employees.

Shift allowances are being paid to the employees who work in shifts at

respective places.

The following leave facilities are given.

30 days earned leave(EL) in a year.

15 days casual leave in a year.

Half pay leaves for 20 days in a year.

A full time medical facility is provided.

House building loan/ house purchase loan/ house repair loan is given.

Vehicle loans are also given.

Bonus is given to all employees.

1 kg Ghee is given per year to all employees.

Half liter of milk per employee is given free flush season(2 months) and of

half of price for remaining 10 months.

Sports budget of Rs.50,000 is provided per year. Free milk/ bread to sports

men after every sports activities.

Two pair of uniform per year and also washing allowance.

Attendance bonus of Rs.30/month.

Shift allowance is being paid at the rate of Rs.2.50 for 2nd shift and Rs.3

for 3rd shift.

Free milk, tea, coffee and snacks to employees working at night shifts and

early morning shifts.

SWOT analysis

STRENGTH

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Price is competitive.

They keep less margin to retailers.

Quality is highest certified by ISO and HACCP. Government also controls the

quality indirectly.

Nandini is committed to social commitment with farmers, retailers etc.

They get sufficient milk from farmers.

Diary and procurement centre is situated very close in Bangalore.

Transportation cost is low.

Well organized organization.

WEAKNESS

BAMUL is neither nor government organization. To take any decision. They have

to take permission from board and government. It is time consuming.

Less margin of profit.

Interference of too many agency.

Comparatively employees are more, thus cost of administration is more.

OPPORTUNITY

Expansion of Diary in Vascote and Onekal.

Separate Production block

For metros, high tech parlours are going to be opened.

Walk-in cold storage is to be opened.

Start many parlours with a view of All Time Milk(ATM) for consumers.

Increase retailers in regional areas.

Try to produce and supply all pther products.

Supply bottle coolers.

Supply insulated boxes.

THREATS

Private agency giving more margin to retailers. Retailers get attracted very soon.

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Private agency can implement many schemes easily.

MNC’s are a big threat to BAMUL as they may enter into procurement of milk.

CONCLUSION

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BAMUL is the no.1 milk diary in India. It has unique features such as No Profit No Loss

motive, it acts as mediator between farmers and the public. It gives social commitment to

farmers and sells its products at convenient price for customers.

It was a great experience coming to Bangalore Diary and doing my in plant here. I got an

exposure of the corporative world. I got a chance to compare our theory with the

practicality. By studying about the BAMUL organization I got to know how the people

work in the organization. It was a great experience in BAMUL knowing how milk is

processed and other products and also how it is good for our health. I gained lot of

knowledge.

BIBLIOGRAPHY

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www.bamul.com

www.google.com

Rules book of BAMUL

Brochure

Company’s Profile CD

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