47 AN ORGNIZATIONAL STUDY KMF-GUMUL INTRODUCTION OF KMF: Karnataka milk federation [kmf] is a cooperative apex body in the state of Karnataka representing dairy farmer’s organization and also implementing dairy development activities to achieve the following objectives Providing assured and remunerative market for the milk produced by the farmer members. Providing quality milk to urban consumers. To build village level institutions in cooperative sector to manage the dairy activities. To ensure provision of milk production inputs, processing facilities and dissemination of know how. To facilitate rural development by providing opportunities for self employment at village level, preventing migration to urban areas, introducing cash economy and opportunity for steady income. The philosophy of dairy development is to eliminate middleman and organize institutions to be owned and managed by the milk producers themselves, employing professionals. Chive economics of scale to ensure maximum returns to the milk producers, at the same time providing wholesome milk at reasonable price to urban consumers. Ultimately, the complex network of cooperative organization should build a bridge between masses of rural producers and millions of urban consumers and archive a socio- economic revolution in the hinterland of the state. G.T INSTUTITE OF MANAGEMENT STUDIES AND RESEARCH
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AN ORGNIZATIONAL STUDY KMF-GUMUL
INTRODUCTION OF KMF:
Karnataka milk federation [kmf] is a cooperative apex body in the state of Karnataka
representing dairy farmer’s organization and also implementing dairy development activities to
achieve the following objectives
Providing assured and remunerative market for the milk produced by the farmer
members.
Providing quality milk to urban consumers.
To build village level institutions in cooperative sector to manage the dairy activities.
To ensure provision of milk production inputs, processing facilities and dissemination of
know how.
To facilitate rural development by providing opportunities for self employment at village
level, preventing migration to urban areas, introducing cash economy and opportunity for
steady income.
The philosophy of dairy development is to eliminate middleman and organize institutions to be
owned and managed by the milk producers themselves, employing professionals. Chive
economics of scale to ensure maximum returns to the milk producers, at the same time providing
wholesome milk at reasonable price to urban consumers. Ultimately, the complex network of
cooperative organization should build a bridge between masses of rural producers and millions of
urban consumers and archive a socio- economic revolution in the hinterland of the state.
INDUSRTY PROFILE:
In the early days, milch animals were domesticated for the fulfillment of household needs and
purposes, but with the passage of time, growth of population and development of business and
commerce, people started using their animals as a source of their earnings. In the first instance,
the surplus milk was collected, stored and sold out in the open market with a limited number of
persons, but their activities gradually swelled and assumed a complete form of business. The
actual beginning of modern dairying has been in the middle of the nineteenth century. But,
significant changes in the structure of dairy have been marked during the past hundred years or
so. However, it was in the second quarter of the twentieth century that the creamery ice cream
factory, fluid milk bottling plant, condenser and dry milk plant were established and dairying was
run in modern ways and dairying assumed a form of full-fledged industry.
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On the path of revolution in the recent years, milk production evolved as the primary rather than
the secondary occupation of farmers. Moreover, the industry is employment oriented as it
provides employment to a large number of persons. A good number of people in Indian
population is engaged in the production, processing and marketing of dairy products and many
persons are needed to process, bottle and deliver fluid mills and other dairy products. Thus, it
helps in combating the unemployment conditions caused by seasonal industries and casual
opportunities of employment.
Farmers in many regions grow fodder in their land for the purpose of cattle raring and have made
dairying as their primary occupation. Milk and milk products are also very important from
nutritional point of view as they contain almost all the essential food constituents required in
human diet. Milk and milk products are very rich in protein, calcium, vitamins and milk sugar
and they provide the nutrients for people in proper proportions. Dairy Industry also fits in well in
diversifying farming programs and reducing the farmer’s link involved in agriculture. It provides
a regular and at least a subsistence income to the farmers.
Even the annuity over the world business argument having adverse effect on dairy industry has
not stopped the growth of milk producer’s societies and unions, which is seen to be increasing
day by day.
The establishment of Karnataka Milk Federation (KMF) in Bangalore, and milk producer’s
societies and unions in various districts (and their products under the corporate brand name)
Along the lines of Gujarat AMUL (Anand Milk Union Ltd) has changed the scenario of milk
production and totally revolutionized the dairy industry in Karnataka.
The confidence of continuous and permanent market for milk has encouraged large number of
people to take up cow and buffalo rearing. This scenario is restricted to northern, southern and
central districts of the state. The Hyderabad – Karnataka region says a different story. For
example, the growth of milk production in Gulbarga district (where the rivers Krishna, Bhima,
Amarja, Mullamari, Bennitore flow) is very meager.
Even in the face of such an adverse conditions the Gulbarga milk producer’s co-operative
societies union, that covers both Gulbarga and Bidar districts, has been continuously trying to
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restructure dairy industry in the region. They domesticate milk-yielding cattle but also collect
milk directly from the rural areas through their own refrigerated milk tankers. They generally
produce standardized type of milk products, such as milk pouches, Ghee, Cream etc., GUMUL in
this effort though having to face losses has never left doubt in its determination.
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DESIGN OF THE STUDY:
1.1 Objective of the Study:
To get an overall view and exposure to the functioning of organization, origin and growth
of the organization, objectives of the organization, organizational structure, product profile
and functional departments of the company.
To acquaint myself with the real practical situations.
To study several business goals, problems, facts, conditions, conflicts and personalities
obtained in organizational settings.
1.2 Scope of the Study:
The scope of the study is indeed vast to be started in brief; the study helps to analyze the
functioning of the organization with reference to various departments. This study would serve as
the basis for any future studies on departments and other functions.
1.3 Study Methodology:
The Research Methodology used for the collection of data needed mainly by the organization
induction manuals, conversation with the officials and the employees, observation and visiting all
the departments.
1.4 Limitations of the Study:
This study was limited to that particular organization.
This study was restricted with in the organization campus.
This study cannot be taken as representative of the other milk unions in the state.
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1.5 Mission, Corporate Objectives and Strategic Goals:
1.5.1 Mission:
Product excellence, hard work and continuous self improvement.
To encourage individual ability and build effective teams.
To contribute for the advancement and development of the nation and improve
human life.
Become market leader by continuously adding new capacities and incorporation
of technology to produce quality milk dairy products at least cost for the complete
satisfaction of customer and to enter into related fields and maintain core
competencies.
1.5.2 Corporate objectives:
To lower the cost of wastes and equipment maintenance.
To impart the knowledge and skills to the new entrants which they can use for an
intelligent performance of their tasks.
To lower turnover and absenteeism.
To assist employees to perform their tasks more efficiently.
1.5.3 Strategic goals:
To become best milk producer’s organization in the country.
To maintain quality of product.
To develop skill up gradation programs for employees.
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Company Profile and Product Profile
Company profile:
In June 3, 1974, an integrated project was launched in Karnataka to restructure and recognize the
dairy industry on the co – operative principle and to lay foundation for a new direction in dairy
development. Work on the first ever World Bank aided dairy development project was initiated
in 1975. Initially the project covered 8 southern districts of Karnataka, and Karnataka dairy
development was setup to implement the project. The multilevel, multiunit organization with
vertical integration of all dairy developmental activities was setup with dairy cooperative
societies at grass – root level. Milk unions at the middle level and Dairy development
cooperation at the state level as an apex body, vested with responsibilities of implementing Rs.51
Crore project. At the end of September 1984 the World Bank aided project ended and the dairy
development activities continued under operation Flood – II. The activities were extended to
cover the entire state except coastal Taluks of Uttar Karnataka District and in April 1984 KMF
came into existence.
2.2 Organization Status:
The union which started with 30 dairy cooperative societies (DCS) had an average collection of
5700 Liters / day. Till the year 2003 – 2004 it increased to 199 dairy cooperative societies (DCS)
with an average milk collection of 18,089 Liters / day.
In the year 2004 – 2005 having 203 dairy cooperative societies (DCS) with an average milk
collection of 21,334 Liters/day.
2.3 Operation status:
The economic position of the Gulbarga – Bidar cooperation milk producer’s society union
limited has improved in a great way since last 3 years. This organization has gained the profit of
49.75 lakhs in the year 2004 – 2005.
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2.4 Manpower Coverage:
The present level of activities encompasses about 15.22 lakhs of dairy farmers as primary
members. Of these, the schedule caste members are 1,49,525, scheduled tribes members are
86,911 and women members are 2,88,035 Nos. A total of about 5,500 numbers of employees are
working.
In various capacities, in all the units of KMF and affiliated milk unions with direct employment.
The indirect employment generated through various project activities of veterinary services, milk
transportation through trucks and tankers. Milk sales through agents, parlors, booths, etc is
around 37,000 which cover about 4,500 Nos. of milk by parlors / booths and about 700 people in
veterinary services. About 810 route contract vehicles directly employing 1800 people are
working in milk transportation. About 14,000 numbers of persons are employed as village level
functionaries in the dairy cooperative societies.
2.5 Dairy Cooperative Society Role:
Dairy cooperative is a basic organization unit functioning at the village level. Democracy is
practiced at the grass root level in these societies, which are organized on the cooperative
principles. By training local to organize and manage the activities, village level inspection
buildings and development of local leadership is promoted. All milk cattle owners are eligible to
become members of the dairy cooperative societies.
2.6 Dairy Corporation Societies Function:
The DCS function dairy and act as a marketing outlet for the milk produced in the village. Input
facilities are also canalized to the dairy farmers through these societies and include veterinary
first aid, sale of cattle feed, supply of fodder seeds, seedlings, provisions of mobile and
emergency veterinary health cover, dissemination of know – how, etc. Payment for the milk
purchased is also arranged through the society. A string of DCS is organized to form a milk
procurement route linked to chilling center or a dairy.
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2.7 GUMUL: Background and Profile:
Karnataka Milk Federation (KMF) is a cooperative apex body in the state of Karnataka
representing dairy farmer’s organization and also implementing dairy development activities to
achieve the following objectives.
Providing assured and remunerative market for the milk produced by the farmer
members.
Providing quality milk to urban consumer at reasonable bill.
To build village level institutions in cooperative sector to manage the dairy activities.
To ensure provision for milk production input facilities and dissemination of know how.
To facilitate rural development by providing opportunities for self – employment at
village level, preventing migration to urban areas, introducing cash economy and
opportunity for steady income.
The philosophy of dairy development is to eliminate middlemen and organize institutions to be
owned and managed by the milk producers themselves, employing professionals / achieve
economies of scales to ensure maximum returns to the milk producers, at the same time
providing wholesome milk at a reasonable price to urban consumers. Ultimately, the complex
network of cooperative organization should build a bridge between masses of rural producers and
millions of rural consumers and achieve a socio – economic revolution in the hinterland of the
state.
2.7.1 Establishment:
The Gulbarga milk producer’s societies union came into existence on 19 th August 1985, with an
initial capital of Rs. 39.34 lakhs where the producer.
Membership and Societies: As of latest, the number of societies of milk collection is 308, of
which only 203 are working successfully, the other being out of order due to milk shortage and
mismanagements. The total number of members registered is 47,645 out of which 16,005 are
small farmers, 10,352 are lower agriculturist, 12,262 are landless labors and others are 9026.
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2.7.2 Board of directors:
There are 12 board of directors out of which 5 are Government appointed, 5 are elected directors
and 2 government nominated directors.
2.7.3 Competitors:
Arokya Milk, Rajhamsa Milk, Sai Milk, Shivamrutha Milk, Dudh Pandhari.
2.7.4 Milk collection and Sales:
Average collection of milk per day is around 21,344 Kgs with an average collection of 105 Kgs
of milk per day per society. The average sale of milk per day is around 29,675 liters.
Dairy Expansion:
The capacity of the Gulbarga dairy has been increased from 30,000 liters to 60,000 liters. The
national dairy development board has implemented this as a part of its 3 rd plan. Chilling centers
of capacity 20,000 are started in Krishna Kada (Shapur C.C) and Gulbarga district on
03.10.1979. One chilling center of 10,000 capacities was started in Hudgi taluk of Bidar district.
A minimal dairy with a capacity of 30,000 liters was opened at Bidar City.
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2.7.5 Product Profile:
Sl. No. Name of the Product Packaging Design Quantity
I MILK
1. Toned Milk
(3% Fat, 8.5% SNF)
Sachets 500 ml,
1000 ml
2 Standardized Milk
(4.5% Fat, 8.5% SNF)
Sachets 500 ml
II GHEE Sachets 200 ml, 500ml
Sl. No. Name of the Product Packaging Design Quantity
III CURD Sachets 500 ml
IV PEDA Cartons 250 gm
V JAMOON MIX Sachets 100 gm
VI BADAM POWDER Sachets 100 gm
VII MILTON STERLISED MILK Bottles 200 ml
2.7.6 Performance Highlights
1. 13 out of 15 taluk that come under the scope of the union are engaged in milk collection
and the sales permitted to all the cites of the district.
2. Elected boards in position in the union and also all the cooperative societies coming under
the scope of the union.
3. The milk from chilling center from Hudgi district is procured by the GUMUL.
Pasteurized, made into packets and then sent to the market.
4. 164 DCS out of 180 working DCS are earning profits.
5. The union collects on an average (9,402 bags of milk/day and distributed Rs.1474 lakhs
to the milk producers per day).
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6. The union also seals on a monthly average of 48.25 MT of cattle fodder.
7. With the help from the state and central government, the providence of loan at a lower
interest from the state SC/St, backward and minorities Development Corporation has been
made possible.
8. By the union scheme of “Bharat Dharshan”, 30 progressive dairy farmer members were
sent on 10-day training tour.
2.7.7 The History of Gulbarga Milk Union is given here under:
24.1.1971 In Karnataka, Gulbarga Milk Union was established
01.06.84 Production and input unit commenced its milk procurement operation in
the village societies
26.10.84 The procurement milk route was started
31.10.84 The first village level society was registered
1984 Shahapur heifer project was started
19.08.85 Gulbarga Milk Union was registered
01.09.88 The training center was handed over to Gulbarga Milk Union
July 1990 The Gulbarga Milk Union recorded in procuring more than 50,000 kg of
milk from village level societies
1991 Bidar Mini Dairy construction work was inaugurated
01.08.91 The Gulbarga Dairy under the control of KMF handed over to Gulbarga
Milk Union
21.08.97 The Gulbarga Dairy plant capacity was increased to 60,000 LPD
03.10.97 The Gulbarga Milk Union new training center building was inaugurated
03.10.97 Shahapur Milk Chilling center was inaugurated
20.11.98 Gulbarga Milk Union started distributing liquid nitrogen
2000 The Bidar dairy started its operation under the control of Gulbarga Milk
Union
June 2002 MIS dept was introduced
2006 Sale of avg 43000 lpd of milk, highest in GUMUL history
In fact with the above year wise performance, the Gulbarga Milk Union is venturing into a new
era in achieving its tasks at the optimum level. Overall 19-20 other hands of milk are competing
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with Nandini Milk. In this circumstances also, Nandini Milk captured a giant share with around
24% of market share in Gulbarga and 54% of market share is captured by local milk vendors and
remaining 22% is by private vendors. The union is pioneer in satisfying the interest of the milk
producers, customers and the employees. Its basic structure is in there tier system, which is at
village level societies, districts with the representation of milk producer’s and controllability.
Table:
ACTIVITY PERFORMANCE
Milk procurement and transportation Dairy industry
Processing and manufacturing Procurement section
Marketing Sales division through parlors & agents
Technical input services Union training center
Training to farmers Veterinary section
Accounts section
Milk route division for procurement
2.7.8 Membership of Gulbarga Union:
Gulbarga co-operative milk union is run on co-operative principles. And it is a voluntary
association of member and is established on the “Anand Pattern”. The bye laws of Gulbarga Milk
Union govern its membership. It has provision for three types of members as shown below.
1. “A” class members: A class membership is open to registered milk producers co-
operative societies operating in the area.
2. “B” class members: B class membership is open only to state government.
3. Nominal Members: Nominal members are those having financial dealings with the union
as suppliers. Contractors selling agents, shall have to pay Rs.100 which is not refundable,
such members have no right to vote or to participate in the management meetings.
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2.7.9 Board of Directors:
Board of directors of union shall consists of 18 members of which 12 are elected presidents of
primary milk co operative societies (A class members) and the remaining 6 directors are
nominated as follows
1. One Director from Joint Register of co-op society.
2. One Director from National Dairy Development Board.
3. Two nominees from Karnataka Milk Federation.
4. One Director from Animal Husbandry.
5. One from Milk Diary and managing director as Director of milk union as
6. Special Ex-office Director
The director from “A” class members will be elected once in a three years. For discharging
various decisions making functions. The board of directors constitutes a number of subs –
committees involving officers of Gulbarga cooperative milk union.
2.7.10 Area of Operation of Gulbarga Cooperative Milk Union:
The Gulbarga Milk Union functions in the two districts, namely Gulbarga and Bidar as shown
below:
1. Gulbarga
2. Aland
3. Afzalpur
4. Chitapur
5. Chincholi
6. Jewargi
7. Sedam
8. Shahapur
9. Sholapur
10. Yadgir
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Bidar District covers 5 Talukas namely
1. Bidar
2. Bhalki
3. Basavakalyan
4. Aurad
5. Humnabad
Bidar district is a center of Milk procurement and Gulbarga district is a center for milk
marketing.
2.7.11 Objectives of Gulbarga Co-operative Milk Union:
As per the Bye laws of Gulbarga cooperative milk union the objectives of the union shall
beached out through activities conductive to the economic and socio economic development of
the milk producers by organizing effective production, processing and marketing of
commodities.
To attain the above objectives the union carries out.
1. Purchase, pool, process, manufacture, distribute and market commodities of the members
and others without effacing the increasing of the members.
2. Own or hold on lease of otherwise moveable or immovable properties and dispose of the
same.
3. Purchase or erect buildings, plant and machinery.
4. Organize new milk producers co-operative society and develop affiliated societies advice.
5. Organize, supervise affiliated societies and for this purpose fix and collect the supervision
charges with the permission of the register of cooperative society.
6. Undertake and exchange production of milk and growing fodder and agricultural
products.
7. Provide veterinary and artificial insemination services. And other technical inputs for
milk production, enhancement and other technical inputs for milk production,
enhancement and medicines for prophylactic and preventive purposes.
8. Own cattle for breeding programmes.
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9. Carry on Cooperative propaganda and impart among the members cooperative knowledge
and its application to business method.
10. Arrange for training to its employees and to its members.
11. Create Trusts and raise funds for the benefits of the employees of the
union, and its members.
12. Establish research and development association.
13. Organize and encourage savings scheme
14. Union shall take advice and guidance from Karnataka Milk Federation.
15. Undertake housing schemes to the diary employees.
2.7.12 Milk Collection of Union:
Gulbarga cooperative milk producers union is procuring milk from two sources.
1. From primary milk producers co-operative societies of the area.
2. From other unions (branch divisions) during slack seasons.
In the case of milk collection from area of operation, there have been 21 routes involving
252 societies at present. Milk routes are shown in the below mentioned table.
Sl. No. Year Routes Societies Involved
1 2003-2004 24 286
2 2004-2005 25 305
3 2005-2006 21 252
Source: Field Investigation
It is evident from the year 2005-2006 Gulbarga Dairy management have reduced milk routes
from 25 to 21 and number of societies are also reduced from 305 to 252.
It is a significant change that has been brought to reduce the loss of the union.
The Gulbarga Milk Union has made a decision to close off nonviable routes and discourage sick
societies, which do not function properly. This important decision is taken during 2005-2006.
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2.8 Marketing of Milk and Milk Products of Gulbarga Co-operative Milk
Producers Union, Gulbarga.
The dairy business in Gulbarga commenced from 1971 the Karnataka Government started dairy
business through its animal husbandry department sale was only limited to Gulbarga city. Diary
plant was inaugurated on 24.01.1971 the then plants capacity was 10,000 liters per day.
Subsequently, the importance of Diary has increased in the district in the meanwhile the
government. Handed over the district in the meanwhile the government. Handed over the dairy
business to the control of Karnataka milk federation.
The Karnataka milk federation in turn after managing the diary business from January 1985 to
01.08.1991 has handed over Gulbarga diary to Gulbarga Milk Union which was functioning
since 19th August, 1985. Since 1985 Gulbarga diary area was fixed in Gulbarga and Bidar district
Bidar district is a center for milk procurement and Gulbarga is a center for milk marketing.
Similarly Raichur is a procurement center and Bellary is a marketing center.
The total sale of milk and milk products of Gulbarga milk union is presented in table.
Sale of Milk by Gulbarga Co-operative Milk Producers Union Ltd, Gulbarga
Year Milk Sold (In Ltr) Amount Rs.
1 1,04,30,409 10,76,52,600
2 1,13,20,853 11,24,05,015
3 1,11,63,665 10,18,43,320
Source: Annual report of Gulbarga cooperative milk producer’s union ltd. Gulbarga.
Other products include 1) Sterilized milk 2) Butter Milk 3) Curds 4) Khava 5) Lassi and 6)
Srikand.
Ghee sale varied from Rs. 38.86 lakhs to 1,10-64 thousands average of Rs.73.46 thousands. Peda
sale varied from 168.77 to 550.15 averages of 312.24 thousands. Sales of skimmed milk powder
during 1995-96 was to the tune of Rs.326.50 thousands, sale of flavored milk was Rs.16.05 and
Butter sale was 3795.09 thousands and other products sale stood to 225.51 thousands.
It is concluded that, Gulbarga co-operative milk producers union ltd. Sold more milk products in
2005-06 i.e. Ghee, Skimmed Milk Powder, Butter and other products than 2004-05 and less milk
than in 2004-2005.
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2.8.1 Taluk Wise Co-operative Milk Societies:
Co-operative Milk Societies in Gulbarga and Bidar Districts
Gulbarga District:
Taluk Villages Villages having co-operative societies
Gulbarga 147 35
Aland 129 26
Chitapur 121 06
Yadgir 142 10
Sedam 111 --
Afzalpur 91 06
Chincholi 145 12
Shahapur 157 157 05
Shorapur 185 28
Jewargi 158 --
No. of Societies 128
Co-operative Milk Societies in Bidar District
Taluk Villages Villages having co-operative societies
Bidar 123 43
Bhalki 120 57
Taluk Villages Villages having co-operative societies
Basavakalyan 82 34
Aurad 149 66
Humnabad 113 58
Total societies 91 258
Source: Field Investigation
The present scene of Taluk wise milk cooperative societies reveal that most of the Talukas of
Bidar and except 2 Talukas of Gulbarga district have cooperative milk societies procuring the
milk. As per the record of Gulbarga cooperative milk producer’s union ltd, Gulbarga is having
128 societies, Bidar having 258 milk societies.
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The share of each taluk shows that Gulbarga taluk ranks at the top on Gulbarga district and
Humnabad ranks in cooperative societies in Bidar district.
In the year 2006 March average milk procured was 23306 KPD (Kgs per day) and average milk
sales during the year 2005-06 was 30767 liters per day.
Gulbarga – Cooperative Milk Producers Society’s Union Ltd, Gulbarga
The causes for the loss incurred by Gulbarga co-operative milk producer’s union ltd. Areas as
follows:
1. The increased rate of milk procurement
2. The increased rate fat content milk i.e., 4.5%
3. The excessive expenditure in the procurement trains potation of milk.
4. Lagging behind in the sale of milk or kid crease in the sale of milk.
5. Decreased allocation of Government grant.
6. Increasing administrative expenditure.
The union made a concerted effort in 2005-2006 and earned profit through the following steps.
1. Decreasing the milk rate during the harvest season by 0.50 paisa.
2. Decreasing the fact content from 4.5% to 3%
3. By reducing procurement transportation routes and minimized the expenses. In 2004-05
procurement transport expenditure was reduced by 16 lakhs.
4. By reducing veterinary expenditure
5. By reducing the administrative expenditure to the extent of Rs.4 lakhs.
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PRODUCT PROFILE:
1. TONED MILK: Karnataka’s most favorite
milk. Nandini toned milk. Pure milk containing
3.0% fat and 8.5% SNF. This is available in
500ml and 1ltr packs.
2. FULL CREAM MILK: Pure milk containing 6% fat
and 9% SNF. Rich, creamier and tastier milk. This is
available in 500ml and 1ltr packs.
3. HOMOGENISED MILK: Nandini
homogenized milk is pure milk which is
homogenized and pasteurized.
Consistent right through, it gives you
more cups of tea or coffee and is easily
digestible. This is available in 500ml packs.
4. CURDS: ‘Nandini’ curds are made out of pure
Milk. It is thick and delicious, giving all the
goodness of homemade curds. It is available in
200gms and 500gms packets.
5. GHEE: ‘Nandini’ ghee is made from pure butter. It is fresh and pure will a
delicious flavor. Hygienically manufactured and packed in a special pack to retain
the goodness of pure ghee. Shelf life of 6 months at
ambient temperature. This is available in 200ml,
500ml, 1-liter sachets, 5-liter tins and 15kg tins.
6. BUTTER: Rich smooth and delicious, ‘Nandini’ butter is made out of fresh
pasteurized Milk cream. Any preparations made from this will be a delicious treat.
It is available in 100gms (salted), 200gms and 500gms cartons both salted and
awareness, programmes, telephone and hoarding, role advertisements, glow sign boards etc.
4.9.8 Channel of Distribution:
Milk Dairy Agent Door Delivery Boy Customer
Or
Milk Dairy Agent Customer
Or
Milk Dairy Agent Subagent Customer
Or
Milk Dairy Day Counters/Refrigerators shop Customer
4.9.9 Advertising:
They are advertising about their milk and milk products through picture slidings, hoardings,
publishing in local newspaper, wall painting, flute board, glow sign boards, bus painting / boards
etc.
Year Wise Milk Procurement & Sales Avg. Per Day (In Kgs)
YEAR PROCUREMENT SALES
2000-01 18370 26882
2001-02 18857 25294
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2002-03 19083 25258
2003-04 18089 29383
2004-05 21344 29675
2005-06 23954 30842
Special Task
Problems:
The main problem which Nandini milk is facing relates to its variation in quality.
Most of the Agents & Consumers have complaint pertaining to Nandini’s quality.
They have complaint regarding variation in thickness and bad smell that arises on account of
mixing of milk powder whenever there is a shortage of milk this kind of dissatisfaction amongst
costumer may force them to switch over to other brand and permanently abandons the idea of
purchasing Nandini milk in future
Another serious change prevailed against Nandini brand is having bad smell which comes while
boiling the milk
Suggestions:
Nandini milk having bad smell, as feeded in the customer mind to fully reduce the smell,
and it should be as a good. Milk should be maintaining an equal level, don’t change day
by day.
Nandini milk can maintain proper quality, with a good thick quality; don’t fluctuate every
day.
Nandini can produce a new product for children, i.e. pure filtered cow milk.
Nandini can give special offers to their customer, like gifts, vouchers and etc so that
customer can divert to Nandini products.
Nandini should give effective advertisements and a good wall print
Credit is the backbone of the business; Nandini should give credit facilities to their
dealers.
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FRAME WORK:
The 7-s model is better then as McKenzie 7-s. this is because the person who develop this model, Tom Peters and Robert waterman, have been consultant at McKenzie. They published their article “structure is not organization” (1980) and in their books “the art of Japanese management” (1981) and “in search of excellence” (1982).The model starts on the premise that an organization is not a structure but consist of seven elements namely:
THE 7-Ss ARE: Structure
Shared values
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System
Style
Staff
Skills, and
Strategy
These seven elements are distinguished as, so called herds and soft’s. The elements are feasible and easy to understand and indentify. They can be found in strategy statements, corporation plans, organizational charts, and documentation.The four softs however, are hardly feasible. They are difficult to describe since capabilities, values, and element of corporate culture are continuously developing and changing. They are highly determined by the people at work in the organization. Therefore, it is much more difficult to plan or to influence the characteristics of the soft elements.
1. SKILL:
The term skill includes those characteristics which people use to describe a company, the
dominate skills or the distinctive competence of an organization are part of the organization
character.
Training in BRPL is aimed at the systematic development, skills, attitude, and team
work .Training and development of personal skills is considered a high priority area and it forms
an integral part BRPL people and its organization development. Suitable training is imparted to
enhance the multiple skills of the executives and to enrich the functional tasks.
Technical Skills
Human Skills
Conceptual Skills
CLASSIFICATION OF SKILL:
Executives
Non Executives
Technicians
Workmen
The qualification required for the staff in the Gomal are described according to the authority and
responsibility and nature of work carried.
1. EXECUTIVES:
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At the top level management the executives require more of conceptual skill, human skill and
low of technical skill. The qualification for the executive is described as under:
QUALIFICATION:
They must have Engineering, MBA, MSW, CA, ICWA and an experience of 5 to 8 years of
At the middle level management the need for technical skill decreases human skill are still
essential and the conceptual skills gain importance.
QUALIFICATION:
They must have bachelor degree B.com, B.A; B.Sc requires relevant experience in the respective
positions.
SKILLS REQUIRED:
Clerical skill, accounting knowledge, finalization of accounts, statistical skill.
3. TECHNICIANS:
At the low level the need for technical skill increases, human skills are also helpful in the
frequent interaction with subordinates & conceptual skills are not critical for lower level.
QUALIFICATION:
Diploma in mechanical, electrical & electronics and ITI.
4. WORKMEN:
At the shop floor the need for technical skill, human skills requirement decrease.
QUALIFICATION:
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Basic education i.e. 7th, SSLC, PUC.
SKILLS REQUIRED:
Machines handling, work under the supervision of the technicians.
SYSTEM:
Systems are formal and informal procedures that govern everyday activity, covering everything
from management information systems, through to the point of contact with the customer.
Finance department is doing enough to properly plan and control the funds. There is regular
program verification.
INVENTORY CONTROL SYSTEM:
Raw materials will be held in the stores for maximum of 4 days only.
Finished goods will be held in the stores for maximum of 2 days.
MANAGEMENT INFORMATION SYSTEM:
In company the management information system is well developed. The MIS department
maintains the data of the company. They capture information from different areas of organization
through network spread around the company. This department gives the information for report to
the management. All the data will be stored in main server of MIS. The purpose of MIS is to give
the timeless information to the internal and external customer. It enables the management to take
quick decision and reduced much of paper work.
The internet and extranet is well connected to all the systems and provided good communication
tools. All the staff members are well aware with the systems. The integrated information system
is used to maintain time lines information for employees. At present
“Enterprise Resource Planning” is installed in the company to well aware of the day to day
activities.
FUNCTIONS OF MIS:
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Look after the development of new programming
Collect day to day information
Take requisition from each department and decides whether it can be designed or not
Take care of communication through e-mail
The department has an e-mail server connected to 5 users.
1. STYLE:
Style refers to the employees shared and common way of thinking and behaving - unwritten
norms of behavior and thought:
LEADERSHIP STYLE & ORGANIZATIONAL CULTURE:
Here style implies the leadership approach of top management and the company’s employee’s
way of thinking and behaving. The style is the tangible evidence of what management considers
important, the way it collectively spends time and attendance and uses symbolic behavior.
Participative style of leadership:
The company is following participative style workers in management (usually the management
will discuss with workers and enter into memorandum of settlement under sec 12(3) of industrial
dispute Act, which comprises terms and condition, labour compliments i.e. number of operation
required to work per day (standard strength) and work load category wise).
Centralized decision making:
The company is follow centralized decision making style only management people can
participate in the process of decision making.
2. STRATEGY:
Strategy refers to the systematic action and allocation of resources to achieve the companies aim.
The integrated vision and direction of the company as well as the manner, in which it drives,
articulate, communicates and implements that vision and direction. It can also be defined as the
choice of direction and action that the company adopts to achieve its objectives in a competitive
situation.
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3. SHARED VALUE:
It refers to the core or fundamental values that are widely shared in the organization and serve as
guiding principle that are important. These values have great meaning because they focus
attention and provide a broader sense of purpose.
Values are things that you would strive for even if they were demonstrably not profitable. Values
act as an organization’s conscience, providing guidance in time of crisis.
The values and beliefs of the company ultimately they guide employees towards valued behavior.
It refers to the simple goal statements in determining corporate destiny to fit the concept; most
people in an organization must share these values.
As per the value of the company “Quality and purity that’s unmatched” the company has
implemented many techniques to see that this values are implemented.
The company tries to satisfy every which is dependent directly or indirectly
The company tries to satisfy employees, shareholders, customers, government, families of
employee, community.
6. STURECHER:
Basis for specialization co-ordination influenced primarily by strategy and by organization size and diversity.
7. STAFF:
There is no proper HR department and recruitment is mainly employees reference or through promotion on its website. The assistant General Managers are the head their respective departments. Promotion or the promotion gradation of the employees is clearly based on Merit-cum-seniority basis.The company secretary takes up the member or secretarial work. He prepares the needed reports to be provided to the top management. The registration of the new clients is the responsibility of the senior executives. Inspection work is the duty of respective mangers of the department. The mangers take up administration. The depository help desk handles the queries regarding the depository services. Various desks are responsible for clearing the queries and communicating with the clients.
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5.1 Strengths:
1. It has wide distribution network.
2. Capable to quote competitive prices and reduces price.
3. The quality of milk is good
4. Consumers good will
5. Better financial strengths
6. Good brand name
7. Institutional support.
8. Economics of scale of production/operations, which leads reduce the cost of productive.
9. Geographical location in order to quick supply of milk in the market.
10. Good distribution and transportation system.
5.2 Weakness
Varying Quality:
The most significant and visible weakness of Nandini milk is its variations in quality this survey
upholds our above remarks. Most of the institutional buyers have complaint pertaining to
Nandini’s quality. They have complaint regarding variation in thickness and bad smell that arises
on account of mixing of milk powder whenever there is a shortage of milk.
This kind of dissatisfaction amongst customer may force them to switch over to other branch and
permanently abundance the idea of purchasing Nandini Milk in future. Another serous change
leveled against Nandini brand is bad smell which spreads while failing many customers revealed
that because of its bad smell, they have dropped the idea to purchase.
Discouraging Margin and Insensitive:
The driving force for any agent is commission i.e., how much they get from selling each packet.
We believe that commissions to the agents are crucial for success or failure of Nandini in future.
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Many dealers contended that the holding cost of Nandini milk is much higher than the
commission, which they derive from selling. Just because of some loyal customers they are
maintaining the stock of Nandini milk. There are some agents who are selling only Nandini milk
for the last 10 to 15 years and that there is no change in their financial portion.
WEAKNESS:
Freezing of marketable area.
Lack of flexibility in system.
Rivalry among sister unions.
Government influence.
Lack of personalize service to channel members.
High overheads.
Turns are not expected.
5.3 Opportunities:
1. Favorable government policy like incentives and grants and infrastructure facilities.
2. Institutional supports
3. Introduce new products
4. Tapping the un served market.
5. Servicing the below poverty or low income people with new schemes.
6. Evening time milk should be supplied
7. It has to focus on Kirana shops and General stores in slum areas under special schemes.
5.4 Threats:
1. Cut through competition from emerging competitions.
2. The bad smell of milk
3. Rapid growth in Technology
4. Research and Development facilities.
5. Threat forms agents and dealers to increase commission.
6. Lack of consumer awareness
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5.5 Recommendations:
1. The main problem which Nandini milk is facing relates to its quality. Many hotels used to
use Nandini before abandoning the idea completely due to its quality. The revealed that
there is no standard quality and the quality varies. They also have complaints regarding
thickness and bad smell. According to their opinion Nandini milk, some time is thicker
sometimes less. This kind of variation has forced them to switch to other brands. Many
complaints have been registered by hotels regarding bad smell, which comes while
boiling the milk. We believe that there are serious issues and should address immediately
without any delay if at all Nandini brand wants to survive in the market.
2. As we said earlier, there are only two impediments
a) Low thickness and b) Bad smells
Further we suggest you to stop the mixing of powder, in the event of insufficient
procurement, we believe in serving the market with quality product. We need not to
mix anything to meet the demand. Price was not an issue for them and this will not be
a barrier in future. They are least bothered about price in fact; they purchase milk at
15 to 16 hours from loose vendors. They seek thickness and ability to last far
maximum buyers. They do not have any complaints regarding packing, availability,
delivery system and behavior of agents.
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6.1 Findings:
The departmental functioning is on the lines of proper co-ordination and managerial
decision making.
Inter departmental communication is satisfactory but is not up to level of perfection.
The emphasis on some cheques and balances is not strong which would lead to more
problems at the level of marketing.
Procedures related to decision making is satisfactory but time consuming.
Although organization is good as for training and development is concern, it has to
improve much more in this direction.
Regarding the quality of Nandini milk and milk products it has been proved that the
quality is best.
It is observed that management unnecessarily spending huge amount on transportation for
the purpose of procuring less quantity of milk (less than 10 to 20 liters of milk).
It is also observed that GUMUL management is spending huge amount of money for
engaging indirect expenses.
GUMUL is spending huge amount on engaging private securities and contract laborers.
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6.2 Suggestions:
The company is having the capacity of producing 60,000 lpd. But presently, they are
utilizing only half of the capacity i.e., they are producing only 30,000 lpd. This can be set
right and can also be streamlined.
By utilizing remaining half of the capacity, the company can manufacture more milk with
the same amount of electricity which saves the electricity and would lead to the cost
reduction.
By reducing the production cost the company can reduce the price and increases its
market share.
The company can introduce money back scheme i.e., if any customer purchases 100 liters
per month they will be giving some money as incentives for purchase. The company can
increase their sales.
The company should conduct a competition analysis.
They should advertise more and TV and printing media
The company should improve the present tones of distribution.
GUMUL should ensure that quality of milk should be maintained at any cost as per the
norms of the TQM there is no compromise with quality. The best quality of milk at
reasonable price should be provided to the consumer.
GUMUL is a co-operative society AMUL pattern and as per the norms of the KMF and
NDDB (National Dairy Development Board) ANAND, GUJARATH.
GUMUL management should have annual action plan for procuring more and more milk
and also induction of high yield milching cows or buffaloes.
The GUMUL management should make provision for providing Jersey cross breed cows
to the farmers in GULBARGA and BIDAR districts, and AI (Artificial Insemination)
centers should be established within the GUMUL premises itself.
THE management should reduce overhead costs.
It is observed that maximum number of employees needs motivation, promotional aspects
and other service benefits in order to improve their efficiency and achieve organization
goals.
GUMUL should recruit highly qualified and suitable persons, right person at the right place.
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Conclusion:
Gulbarga Milk Dairy that is providing milk and milk products under the different kind of brand
names, have made a sufficient name and fame in the minds of people for its quality, availability
and relatively satisfying the needs of the ultimate consumer and it has made a sufficient mark an
established brand among the milk and milk products.
Initially when Gulbarga Milk Dairy was started, its capacity of production was less, as for now it
has uplifted itself for higher production capacity.
By large the study has revealed that the product mix of Gulbarga Milk Diary is excellent and the
pricing strategy is also excellent. By this I can conclude that Gulbarga Milk Diary has a very
good market share for its brand name and also it products.
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LEARNING EXPERIENCE:
Learning is synonymous to experience. This is because every human being learns hence only out
of experience and experience is the way of life. In life a person enhances his / her knowledge
only when exposed to real world situations, and by being exposed to the real conditions in a
systematic manner. He / she understand how to live and face various unforeseen situations. This
is exactly what the MBA course does to its students. The MBA course has the “in-plant training
program” as the part of its curriculum to make the students experience the actual corporate world
and learn its ways of functioning. In this competitive world this kind of an approach is extremely
indispensable. Students coming out, as MBA’s would be ready to have an interface with the
corporate world with determination, confidence and competence. Today’s corporate world
demands for all these qualities, without which facing the corporate world is a difficult task.
The working of the dairy is well planned. Especially the production department, Quality control
and the packing section. Every human being consumes milk but not everybody knows how it
reaches him or her pure and fresh. Before interacting with dairy I had thought of the complication
and quality standards to be maintained for getting the packed milk. After my experience in
GOMAL, I have understood that milk is not a simple thing to be just procure, packed and sold to
consumers it involves a lot of procedures, efficiency in maintaining the quality and overall a
commitment to sell the best to the consumers for whom it is an important drink consumed
directly or indirectly. Systematic and committed working is the most important lesson that I have
learnt by studying the entire organization. I have also understood that organization do not exist
only to make profit but to serve the society by producing the quality goods.