UNIVERSITY OF MYSORE INTERNSHIP PROJECT REPORT “Organizational study of Mysore Milk Union Ltd” SUBMITTED BY KARTHIK K J Reg. No: 13MB0237 UNDER THE GUIDENCE OF: Mr. AJAY M. JADHAV Assistant Professor - DoS in Business Administration, Pooja Bhagavat Memorial Mahajana Post Graduate Centre Mysore – 570016 Project Report submitted to the University of Mysore in partial Fulfilment of the requirements of III Semester MBA Degree Examinations –Dec/Jan 2014 - 15 DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE CENTRE K. R. S. ROAD, METAGALLI, MYSORE
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UNIVERSITY OF MYSORE
INTERNSHIP PROJECT REPORT
“Organizational study of Mysore Milk Union Ltd”
SUBMITTED BY
KARTHIK K J
Reg. No: 13MB0237
UNDER THE GUIDENCE OF:
Mr. AJAY M. JADHAVAssistant Professor - DoS in Business Administration,
Pooja Bhagavat Memorial Mahajana Post Graduate CentreMysore – 570016
Project Report submitted to the University of Mysore in partialFulfilment of the requirements of III Semester MBA Degree
Examinations –Dec/Jan 2014 - 15
DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION
POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE CENTRE
K. R. S. ROAD, METAGALLI, MYSORE
CERTIFICATE
DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION
2014- 2015
This is to certify that Mr. KARTHIK K J., Reg. No. 13MB0237, our student of 3rd semester MBA
has carried out the Internship Project at “Mysore Milk Union Ltd “ as part of his curriculum activity
as per the norms for obtaining a Post-Graduation Degree in Master of Business Administration from
UNIVERSITY OF MYSORE during the year 2014- 2015
Mr. AJAY M. JADHAVAssistant Professor - DoS in Business Administration Pooja Bhagavat Memorial Mahajana Post Graduate CentreMysore
CERTIFICATE
POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE
CENTRE, K R S ROAD, METAGALLI, MYSORE.
DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION
2014- 2015
This is to certify that Mr. KARTHIK K J. student of III semester MBA, bearing the register number
13MB0237 has successfully completed the Internship Project Work titled “Organization study of
Mysore Milk Union Ltd” in partial fulfilment of the requirements for the award of Post-Graduation
Degree in Master of Business Administration of the University of Mysore, during the academic year
2014- 2015
Dr. C K Renukarya Prof. S R S KhadriDirector Director, Dept. of StudiesPBMM P. G. Centre in Business AdministrationMysore PBMMPGC, Mysore
DECLARATION
I, hereby declare that the report title “Organization study of Mysore Milk Union Ltd” is a record of independent research carried out by me under the guidance of Mr. AJAY M. JADHAV Assistant Professor - DoS in Business Administration , Pooja Bhagavat Memorial Mahajana Post Graduate Centre, Mysore, and I further declare that the findings in the Internship Project Report are independent study done by me.
Place: Mysore
Date: KARTHIK K J
ACKNOWLEDGEMENT
I place my Sincere thanks to Director Dr. C K Renukarya, honorable Director
P.B.M.M.P.G. Centre, Prof. S R S Khadri. Director of Department of Studies in
Business Administration and Mr. AJAY M. JADHAV Assistant Professor -
DoS in Business Administration, Pooja Bhagavat Memorial Mahajana Post
Graduate Centre for having provided necessary facilities to undergo my project
work.
I would like to express my sincere thanks to Mr. NAGARAJE GOWDA,
external project guide, for his co-operation to complete my project work.
Date: KARTHIK K J
Place: Mysore Reg. No.13MB0237
MYMUL Organizational study
CONTENT
CHAPTER CONTENTS PAGE NUMBER
1 INTRODUCTION 7-17
2PROFILE OF THE
ORGANIZATION & SWOT
18-38
3DETAILED STUDY OF
THE DEPARTMENT39-73
4STUDY OF SPECIFIC
MANAGEMENT74-75
5RECOMMENDATIONS
ANDCONCLUSION
76-78
6 BIBILOGRAPHY 79-79
7 ANNEXURE 80-80
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CHAPTER-1
INTRODUCTION
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1.1 GENERAL INTRODUCTION
Mysore Milk Union limited (MYMUL) is a co-operative Milk Union fully
owned and managed by milk producers of Mysore and Chamrajanagar districts of
Karnataka State. Since its inception 1987, the union is constantly striving to further
the dairy development and marketing activities in its milk shed area.
Importance of Milk:
Milk is nature’s ideal food for infants and growing children. The importance
of milk in our diet has been recognized since Vedic times, and all modern research
has only supported and reinforced this view. In fact, milk is now considered not only
desirable but essential from the time the child is born. The baby is recommended to be
breast-fed until it is weaned and thereafter given cow/buffalo/goat/sheep or similar
domesticated mammal’s milk till he or she reaches 12 years of age.
Milk is an almost ideal food. It has high nutritive value. It supplies body
building proteins, bone-forming minerals and health-giving vitamins and furnishes
energy-giving lactose and milk fat. Besides supplying certain essential fatty acids, it
contains the above nutrients in an easily digestible and assailable form. All these
properties make milk an important food for pregnant mothers, growing children,
adolescents, adults, invalids, convalescents and patients alike.
The National Institute of Nutrition has recommended a minimum of 300 g
daily intake of milk for children between 1-3 years of age and 250 g for those between
10-12 years, if they are vegetarian, and 250 g and 200 g for the same age groups of
non-vegetarian children. In our country, most such adults consume milk only as
whiteners for tea and coffee, some dahi or buttermilk.
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1.2 OBJECTIVES OF THE STUDY :
To be familiar with the organisational environment.
To know the organisational structure of the company.
To get a practical exposure to various functional departments of MYMUL.
To know the products prepared by the MYMUL
1.3 INDUSTRIAL BACKGROUND :
Dairying prior to operation flood:
The earliest attempts of dairy development can be traced back to British rule,
when the Defence Department established military dairy farms to ensure the supply of
milk and butter to the colonial army. The first of these farms was set up in Allahabad
in 1913; subsequent facilities were established at Bangalore, Ootacamund and Karnal.
These farms were well maintained. As animals were reared under farm conditions,
some herd improvement was made using artificial insemination. This approach did
not have any impact on the supply of milk to urban consumers, which was of major
concern to civilian authorities but less important to the military. With the growth of
the population in urban areas, consumers had to depend on milk vendors who kept
cattle in these areas and sold milk, often door-to-door. As a result several cattle sheds
came into existence in different cities.
To some extent, the Second World War gave impetus to private dairies with
modestly modernized processing facilities. In the cities like Bombay, Calcutta,
Madras, and Delhi and in some large townships, processed milk, table butter and ice-
cream were available. Polson’s, Kelventers and the Express Dairy were some of the
pioneer urban processing dairies. These dairies were not concerned with improving
the breed of milk animals but were content with contracting milk supplies through
middlemen or their own staff. Milk producers as well as consumers were exploited to
a large extent. Despite modernized processing facilities, dairying remained
unorganized.
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With the initiation of India’s first five-year plan in 1951, modernisation of the
dairy industry became a priority of the government. The goal was to provide hygienic
milk to the country’s growing urban population. Initial government action in this
regard consisted of organizing “milk schemes” in large cities. To stimulate milk
production, the government implemented the Integrated Cattle Development Project
(ICDP) and the Key Village Scheme (KVS), among other similar programmes. In the
absence of a stable and remunerative market for milk producers, however, milk
production remained more or less stagnant.
During the 1960s, various state governments tried out different strategies to
develop dairying, including establishing dairies run by their own departments, setting
up cattle colonies in urban areas and organizing milk schemes. Almost invariably,
dairy processing plants were built in cities rather than in the milk sheds where milk
was produced. This urban orientation to milk production led to the establishment of
cattle colonies in Bombay, Calcutta and madras. These government projects had
extreme difficulties in organizing rural Milk procurement and running milk schemes
economically, yet none concentrated on creating an organized system for procurement
of milk, which was left to contractors and middlemen. Milk’s perishable nature and
relative scarcity gave the milk vendors leverage, which they used to considerable
advantage. This left government-run dairy plants to use large quantities of relatively
cheap, commercially imported milk powder.
All these factors combined left Indian dairying in a most unsatisfactory low-
level equilibrium. The establishment and prevalence of cattle colonies emerged as a
curse for dairying in the rural hinterland as it resulted in a major genetic drain on the
rural milk animal population, which would never be replaced. City dairy colonies also
contributed to environmental degradation, while the rural producer saw little reason to
increase production.
Operation flood:
The strategy for organized dairy development in India was actually conceived
in the late 1960s, within a few years after the National Dairy Development Board
(NDDB) was founded in 1965. It rested on the Operation Flood programme, which
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was conceived by the NDDB and endorsed by the government. Operation Flood is a
unique approach to dairy development. During the 1970s, dairy commodity surpluses
were building up in Europe. The chairman of NDDB saw those surpluses as both a
threat and an opportunity. The threat was massive exports of low-cost dairy products
to India, which had it occurred, would have told the death-knell for India’s staggering
dairy industry. The large quantities that India was already importing had eroded
domestic markets to the point where dairying was not viable. The opportunity, on the
other hand, was built into the Operation Flood strategy. Designed basically as a
marketing project, Operation Flood recognized the potential of the European
surpluses as an investment in the modernization of India’s dairy industry. With the
assistance of the World Food Programme, food aid in the form of milk powder and
butter oil was obtained from the countries of the European Economic Community
(EEC) to finance the programme.
Operation Flood is a programme designed to develop dairying by replicating
the An and Model for dairy development, which has stood the test of time for almost
half a century. The first phase of Operation Flood was launched in 1970 following an
agreement with the World Food Programme, which undertook to provide as aid
126000 tonnes of skim milk powder and 42000 tonnes of butter oil to finance the
programme.
The programme involved organizing dairy co-operatives at the village level;
creating the physical and institutional infrastructure for milk procurement, processing,
marketing and production enhancement services at the union level; and establishing
dairies in India’s major metropolitan centres. The main thrust was to set up dairy co-
operatives in India’s best milk sheds, linking them with the four main cities of
Bombay, Calcutta, Delhi and Madras, in which a commanding share of the milk
market was to be captured. In achieving that goal, the first phase of Operation Flood
laid the foundation for India’s modern dairy industry, an industry that would
ultimately meet the country’s need for milk and milk products.
The second phase of the programme was implemented between 1981 and
1985. Designed to build on the foundation laid in the first phase, it integrated the
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Indian Dairy Association-assisted dairy development projects being implemented in
some Indian states into the overall programme.
The current third phase of Operation Flood aims at ensuring that the co-
operative institutions become self-sustaining. The programme envisages substantial
expansion of the dairy processing and the marketing facilities; an extended milk
procurement infrastructure; increased outreach of production enhancement activities
and professionalization of management in the dairy institutions.
KARNATAKA MILK FEDERATION
karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13
milk unions in the state and thus forming the state level apex organization. As a co-
operative apex body of the state of Karnataka, it represents dairy farmers’
organization and also implements dairy development activities to achieve the
following objectives:-
Provides assured and remunerative market for the milk produced by the farmer
members.
Provide quality milk to urban consumers.
To build village level institutions in co-operative sectors to manage the dairy
activities.
To ensure provision of milk production inputs, processing facilities and
dissemination of know-how.
To facilitate rural development by providing opportunities for self
employment at village level, preventing migration to urban areas, introducing
cash economy and opportunity for steady income.
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List of co-operative milk producers under Karnataka Milk Federation
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1.3 a Origin of the Industry :
Though ancient written records report milk as an important food, it’s
processing and distribution as a separate commercial business did not develop
countries until the concentration of population in the cities reached a high-level in the
middle of the nineteenth century.
In India, dairying has been practiced as a rural cottage industry since the
remote past. Semi commercial dairying started with the establishment of military
dairy farms and co-operative milk unions throughout the country towards the end of
the nineteenth century, however, market milk technology may be considered to have
commenced in 1965, with the functioning of the central dairy of Aarey milk colony
and milk product technology in 1956 with the establishment of “Anand Milk Union
Limited” (AMUL) Dairy in 1946 first milk union started in India, at Gujarat.
In developed daring countries such as the U.S.A., the year 1850 is seen as the
dividing between farm and factory-scale product. Various factors contribute to this
change in these countries viz., concentration of population incites where jobs were
plentiful, rapid industrialization, improvement in transportation facilities,
development of machines etc., where as the rural areas were identified for milk
production, the urban centers were selected for the location of milk processing plants
and products manufacturing factories. Gradually formers within easy driving distance
begin delivering milk over regular routes in the cities. Prior of the 1850’s most milk
was necessarily produced within a short distance of the lace of consumption because
of lack of suitable means of transport and refrigeration
1.3 b Growth and development of the Industry :
Until the 1940, there was very little published information on the method of
preparation and use of these products. The credit for the first publication on the
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subject goes to Dr. W.B.Davis, the first director of the industry research, Indian Diary
research Institutes (now National), Bangalore. Within the span of these four decades
since his book appeared, considerable research has been places in indigenous Dairy
products.
1.3 c Present status of the industry :
The Indian dairy industry is heading towards new century with an accelerated
and positive momentum. With unprecedented growth in milk production by over two
and a half time in the also two decades to about 58.8 million tones in 1992, India has
emerged as the largest milk producer in the world with an annual milk production of
76 million tones. Food processing industry ranks as the fifth largest industry in the
country. Though the milk and milk products have 85% business in unrecognized
sector, it is having 7% growth per year.
The establishment of a co-operative structure as a ready and regular buyer or
milk produced gave a new turn to the rural economy. Today, over 275 dairy plants
and 83 milk products factories in the co-operative, public and private sectors handle
an estimated 12%--15% of the total milk produced. In most of the countries in the
world, the proportion of milk delivered to the dairies is over 90%. The trends are now
changing fast in India too it is expected that the processing of milk on organized scale
will increase sharply in developed countries. This will consequently increase the
opportunities for value addition, while the value of the output of the dairy products in
the country’s food sector has increased from 5%-7% during the same period. Now,
the days of milk scarcity and imports are behind us, the organized sector can seize the
opportunity of tapping the market of value added dairy products like butter, cheese,
lactose, khova, paneer, etc.
It is beyond doubt to mention that the organized dairy industry has done a
splendid job by transforming itself from an import-dependent enterprise to self-
sufficient industry and the embarking on export of various products. And, now it is
poised for another wave of expansion by undertaking large-scale production of milk
in the organized sector.
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1.3d ENVIRONMENT OF THE STUDY :
After the closure of OF-III project. Government of Karnataka and NDDB
signed an MOU during February 2000, for further strengthening the Dairy
Development Activities in Karnataka with an outlay of Rs.250 Crores. Consequent to
the announcement of new lending terms and conditions by NDDB through an
evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face
the challenges of the increased demand for milk and milk products by focusing efforts
in the four major thrust areas of Strengthening the Cooperatives. Enhancing
Productivity, Managing Quality and building a National Information Network, plans
are under implementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and
Gulbarga that were having accumulated losses were included for rehabilitation
programme under the Centrally Sponsored Scheme "Assistance to Cooperatives"
which is also under implementation.
.
1.3e FUTURE OF THE INDUSTRY :
FUTURE VISION :
To consolidate the gains of Dairying achieved in the state of Karnataka and with a
view of to efficiently chill, process and market ever developing and increasing milk
procurement with an utmost emphasis on the Quality and in the process conserve the
socio-economic interests of rural milk producers, the Govt. of Karnataka through
KMF has proposed to undertake several projects with financial and technical support
of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on
10th Nov. 2004
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CHAPTER-2
PROFILE OF THE
ORGANIZATION
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2.1 ORIGIN OF THE ORGANIZATION :
MYSORE DAIRY, a unit of Mysore – Chamrajanagar District Co-Operative
milk producers Union Limited (MYMUL) registered under Karnataka co-operative
act has been commissioned in the year 1976. It is fully owned and managed by
Mysore and Chamrajanagar districts of Karnataka state.
The philosophy of this co-operative milk producer’s organisation 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 responsible 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 and achieve a socio-economic revolution in the
village community.
Background and inception of the company
Under the World Bank aided Karnataka Dairy Development Projects, the
activities on Dairy Development were taken up in the year 1975. The Mysore Coop
Milk Producers Societies Union Ltd was established on 23.11.1976, having the
jurisdiction extended to the entire Mysore District and Five Taluks of Mandya
District. The Union undertook the work of organization of Milk Co-operatives in
‘AMUL Pattern’ with the main objective of socio-economic reformation of the
farmers in the rural areas through Dairying as main subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Co-
Operative Milk Producers Societies Union Ltd from 01.04.1987. Consequent to the
bifurcation of Mysore District into Mysore and Chamrajanagar Districts, this Union is
renamed as Mysore-Chamrajanagar District Coop Milk Producers Societies
Union Ltd.
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2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION :
To provide remunerative market for the milk produced by the rural farmers
throughout the year irrespective of the quantity supplied by them.
First Aid facility at the Society level.
Emergency visits to treat the animals on a nominal fee to be collected from
the producer.
Cross breeding facility through Artificial Insemination service.
Supply of balanced Cattle Feed to the farmers of the Coop Societies at
subsidized rates.
Technical guidance and supply of root slips/seeds for Fodder cultivation by
the members of the Coop Societies
Effective supervision/extension services through field executives of the
Union.
Intensive Co-Operative education programmes to the women members of the
Dairy Coop Societies through Coop Development Programme.
Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the
control of the Department of Animal Husbandry and Veterinary Services of
Karnataka State, which was transferred to Karnataka Dairy Development Corporation
in the year 1974. The capacity was expanded to 60 TLPD in 1980 and transferred to
the Karnataka Milk Federation in 1984. The capacity was expanded to 100 TLPD
under the Operation Flood II and further expanded to 150 TLPD under OF III
Programme. As per the Government policy the Dairy and its Chilling Centres were
handed over to MYMUL on 01.06.1987
2.3 VISION AND MISSION :
Vision:
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The vision of MYMUL is to provide quality milk products to the consumers
and emerge as one of the top milk union of the co-operative dairy industry in the
country.
Mission:
MYMUL is committed to provide maximum possible price for the milk
supplied by its members and provide necessary inputs to enhance milk production
while ensuring economic viability of the union.
Quality policy:
MYMUL is committed to producer’s welfare through customers delight by
adopting continuous improvement and ensure pure and hygienic milk and milk
products.
Values:
Honesty
Discipline
Quality
Cost control
Co-operation
Team spirit
Service motive
Objectives of MYMUL:
To provide a guaranteed remunerative milk market round the year for all the
marketable surplus of member producers in their villages.
To procure milk, process into good quality milk/milk products and market it most
economically and efficiently to give maximum overall net-returns to the producers
and general satisfaction to the consumers.
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To provide essential technical inputs and services to the producers at their door-
steps in an economic and efficient manner and also in a way most acceptable to
them.
To build village level institutions co-operative sector to manage the dairy
activities.
In order to fulfil these objectives, the union is constantly engaged in working towards
improvements of business as well as the welfare of the producers. This has resulted in
greater performance on commercial as well as in institutional front
AWARD
MYMUL has got two awards they are
1 ISO 9001-2000
2 National Energy Conservation award from president of India in 2005.
MILESTONES:
1955: First Dairy in Karnataka at Kudagoo.
1965: Govt. Dairy, Mysore started with 10 TLPD capacities.
1974: Karnataka Dairy Development Corporation born.
1975: Primary Dairy Coop Societies commissioned.
1975: Govt. Dairies transferred to KDDC.
1976: Mysore Coop Milk Producers Societies Union started.
1980: Processing capacity of Mysore Dairy expanded to 60 TLPD.
1983: Corporate brand name ‘NANDINI’ came into effect.
1984: KDDC transformed to KMF.
1987: Bifurcation of Mysore Union into Mysore & Mandya District Unions.
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1988: Newly expanded 60 TLPD capacities CC at Chamrajanagar.
1988: Training centre, Mysore handed over to MYMUL.
1993: Cluster AI centres started in MYMUL and first time in Karnataka.
1993: IBP prepared at MYMUL for the first time in Karnataka.
1998: Kollegala Chilling Centre commissioned.
1998: 10 TL capacities Liquid Nitrogen Storage Tank erected.
1999: ‘NANDINI SALES DEPOT’ started at Chamrajanagar.
1999: Planted trees in 10 acres land under forestry.
1999: First place at national level in construction of Smokeless Ovens.
2001: Production of Mysore Pak started.
2002: Adopted ‘Mnemonic Symbol’ through NDDB.
2003: Released Full Cream Milk in 500 ml and Toned Milk in 250 ml packets.
2004: 3 numbers each BMC’s started in Gundlupete and KR Nagar taluks.
2004: MYMUL Raitha Kalyana Trust started.
2005: ISO 9001-2000 Certification obtained through TUV Rhineland.
2005: For the first time received the national award for Energy Conservation
Award from Dr. A.P.J. Abdul Kalam.
2006: Released ghee to market in 50 ml, 100 ml packets.
2006: Ghee sales in pet jars at Kerala started.
2006: An Auditorium at Chamrajanagar CC is inaugurated and named as
Dr.Rajkumar.
2007: Prestigious ISO 9001-2000 Certificate is renewed.
2007: Received the National and State award for Energy Conservation Award.
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2007: Released 5 Lit Toned milk packet and 100g packet containing 10 No of 10
peda.
PRODUCT PROFILE
MYMUL manufactures the following products:
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MYMUL, Milk Union manufactures the following products
a) TM: Toned Milk
b) STD: Standardized Milk
c) FCM: Full Creamed Milk
d) DTM: Double Toned Milk
e) HSTD: Homogeneous Standard Milk
f) Curds
g) Ghee
h) Peda
i) Mysore pak
j) Lassie
k) Masala Majijge
l) Flavoured Milk
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NANDINI TONED MILK
Karnataka’s most favourite milk. Nandini Toned Milk, pure milk containing
3.1%fat and 8.5% solid not fat. Available in 500 ml and one litre
NANDINI FULL CREAM MILK
Full Milk; contain 6.1% far and 9% solid not fat. Rich creamier and tasted milk, Ideal
for preparing homemade sweets and savouries. Available in 500ml.
NANDINI HOMOGENISED TONED MILK
Nandini homogenized toned milk is pure milk, which is homogenized and
Pasteurized consistent right through. Available in 500ml packs.
NANDINI CURD
Nandini curd made from pure milk, it is thick and delicious. Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet.
NANDINI STANDARDISED MILK
This milk containing 4.6% fat and 8.5% solid not fat. Available in 500mlPack.
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 remain
the goodness of pure ghee. Shelf life of six months of ambient temperatures.
Available in 200ml, 500ml, 100ml, sachets and15kgs tins.
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NANDINI PEDA
No matter what you are celebrating Nandini Peda from delicious treat for the
family made from Pure milk, store at room temperature approximately seven days.
Available in 50 grams for Pack containing 10 pieces each.
NANDINI MYSORE PAK
Fresh and Tasty, Nandini Mysore Pak is made from high quality Bengal gram,
Nandini Ghee and sugarcane. Available in 250grams and 500grams. PP container
shrink packed to preserve freshness. Advised to consume fresh to enjoy its excellent
taste.
SWEET LASSIE
Sterilized flavoured milk. Nutritious and healthy milk and an all season
wholesome drink available in different flavours.
NANDINI FLAVOURED MILK
Sterilized flavoured milk. Nutritious and healthy milk and an all season
wholesome drink available in 5 different flavour pineapple, rose, bad am, pista and
natural orange.
MASALA MAJJIGE
It is also one of the drinks available from dairy. It should be prepared with masala
ingredients.
BADAM BURFI
Bad am burfi is a delicious treat made up of milk and it can be stored at room
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temperature.
CASHEW BURFI
Fresh and tasty cashew Burfi is made from cashews, Nandini ghee, and sugar
milk. It is a Delicious way to relish a sweet movement
2.4 PRESENT STATUS AND FUTURE OF THE ORGANIZATION :
1 General
Area of the Dairy : 45 acres
Handling capacity : 2, 74,000 LPD
Estimated cost of Building : 2.89crores
Number of employees : 374
2 .Milk procurement
Dairy co-operative societies functioning : 895
Dairy societies registered : 936
Procurement routes : 71
Chilling centres : 3
Districts covered : 2
Taluks covered : 11
Villages covered : 2005
3 Milk Distributions
Distribution routes : 35
Districts covered : 2
Selling agents in urban : 374
Selling agents in rural : 235
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Milk parlours : 48
AREA OF OPERATION
MYMUL not only operates in Mysore districts, but, also operates in some parts
of Chamrajanagar District. It operates 502 distribution centres, concerning all the
agents besides, there are 2 milk parlour maintained by the dairy.
The area of operation is as under:
COMPETITORS INFORMATION
The major competitors of the MYMUL are as follows:
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Mysore District Mysore Tq.
T Narasipura Tq.
Nanjanagudu Tq.
H.D.Kote Tq.
Hunsur Tq.
Piriapatana Tq.
K.R. Nagar Tq.
Chamrajanagar District Chamrajanagar Tq.
Gundlupete Tq.
MYMUL Organizational study
>Jersey
>Dodla
>Arogya
>Gomatha
>Thirumala
>Swastika
>Loose milk vendors
>Heritage
JERSEY
*Plant at Andhra Pradesh
*Sale in Union Jurisdiction 45 TLPD (Thousands litre per day) (100 TLPD in City)
*M.R.P. rate Rs. 16.00 per litres- seller rate Rs. 15.50 to based on quantity.
*Commission ranges from 40-70 per litre (good incentive scheme)
*Quality perception-thick and longer shelf life.
*Flexible distribution-retailers, wholesalers or anyone willing to sell.
*Payments cash and carry or while collecting empty crates on return trip.
*Availability mostly retail outlets and now capturing institutional sales by any means.
* Vigorous advertisement especially at the point of purchase.
DODLA:
* Plant at Nellore.
*Availability of raw material at cheaper rate.
*Sale in union Jurisdiction 18 TLPD (Thousands litre per day in city)
*M.R.P rates Rs. 13.00 per litre- seller rate 12.50.
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MYMUL Organizational study
*Commission ranges from paisa 40-50
*Quality perception-thick and long shelf life.
*Flexible distribution-retailers or anyone willing to sell
*Returns will be accepted.
*Payment- cash and carry or which collecting empty on return trip.
*Channel members are playing critical role in boosting the sales.
*Packing is attractive with multicolour pricing on sachets
*Consumers perceives that milk is good for making curds.
AROGYA:
*Plant at Bangalore
*Sale in union jurisdiction 10 TLPD (Thousands litre per day) (25 TLPD in cities)
*MRP Rates Rs. 18.00 per litre.
*Commission ranges from 60 paisa per litre.
*Availability mostly retail outlets like bakeries. Condiments and departmental stores
*Packing is attractive with multicolour printing on sachets.
*Concentrating on value added products and not much on milk.
LOOSE MILK SALE
*Market share is next to Nandini.
*Loose milk from Erode and local cattle rears
*Sale in union jurisdiction 140 TLPD.
*MRP Rate Rs. 7.00 to Rs.12.00 per litre.
*Majority of the milk is heavily adulterated and no uniform quality.
*Sales from 50ml and above.
Heritage
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MYMUL Organizational study
*Plant at Bangalore
*Sale union jurisdiction from 12 TLPD (30 litres TLPD )
*MRP Rates is RS 20 per litre
*More contents in fat than any other milk competitors
INFRASTRUCTURAL FACILITIES
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MYMUL Organizational study
MYMUL has better infrastructural facilities which makes their production process and Business process more easier, it consists of;
I MILK PROCUREMENT
*Milk collection from farmers.
*Dairy co-operative society.
*Bulk milk products.
II. TRANSPORTATION
*They have procurement group contract vehicles.
*Milk Tankers.
III. MILK PROCESSING
*Raw milk reception dock
*Cream separators
*Milk pastures
*Cream pastures
*Stored tanks
*Electronic milk tester and milk scan
IV PACKING
*Milk packing machine
*Curd packing machine
*Lassie, masala majjige packing machine
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MYMUL Organizational study
*Flavoured milk packing machine
*Ghee packing machine
V ENGINEERING
*Reformation equipments
*Boiler equipment
*Effluent treatment plants
*Electronic generation
VI MARKETING
a. Distribution network
*Agents
*parlours
*Depots
*Franchise
b. Distribution Transport
*Trucks
* Goods auto
*Mobile
.
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MYMUL Organizational study
2.5 Organizational Structure and Organization Chart
ORGANISATION STRUCTURE
-
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President
MANAGING DIRECTOR (MYMUL)
Manager (P&I)
Manager
Manager (Mktg)
Manager (MIS)
Manager (Finance)
Security supervisor
Deputy manager(Administration)
Board Of Directors
MYMUL Organizational study
ABBREVIATION
President : President
M D : Managing Director
MYMUL : Mysore Milk Union Limited
D M : Deputy Manager
P & I : Procurement and input department
P : Production department
Mktg : Marketing department
HR : Human Resource department
MIS : Management Information System
Organisation structure is the skeleton of the organisation. It prescribes the
formal relationship among various position and the activities. Arrangements about
reporting, relationship, how an organisation member is to communicate with other
members, what roles and procedures exist to guide the various activities performed by
the members of all parts of the organisation structure.
Organisation structure plays a vital role in achieving the organisational goals.
Organisation structure should be properly designed to facilitate the smooth
functioning of the organisation.
Organisation structure of MYMUL consists of BOD’s at the top. Then
president, under whom is the Managing Director. He is the person who is responsible
for smooth functioning of the organisation. After Managing Director there are
managers and Deputy Mangers of various departments who are responsible and
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MYMUL Organizational study
accountable for the activities of their respective departments. There are subordinates,
supervisors and employees who are directly linked with department managers.
2.6 SWOT Analysis of the Organization
Strength
1. Market leader.
2. “Nandini” is a trusted house hold brand name.
3. Two lakh farmer members.
4. Provides excellent veterinary, AI, vaccination, Extension facilities, Feeds and
Fodder seeds supply etc., in the field, which cannot be thought off by any
private operator. Hence earned lot of goodwill from member producers, who
patronize the union throughout the year.
5. Has earned the distinction of not failing to deliver the milk to market on time
throughout the year.
6. There are days with no power supply, no water supply; but there is no day
without NANDINI milk supply.
7. Highly remunerative and timely payment to producers.
8. Union is in good financial position.
9. ISO 9001-2000 certificate.
10. Good institutional support from KMF, NDDB, etc.,
Weakness
1. Lack of flexibility in deciding about its operation. No authority over issues
like pricing, offering volume discounts etc.,
2. Political interference.
3. Organizational structure does not permit incentive/ reward for good
performance.
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MYMUL Organizational study
Opportunities
1. Since the Mysore district is under Cauvery basin, perennial greens are
available to the cattle.
2. Institutional markets, bakeries, hotels etc., are not fully tapped and these can
be captured preferably by direct marketing.
3. Diversification of milk products like Peda, Mysore Pak.... etc.,
4. Exploit the “Human Face”, by positioning in the market as an organisation
with social responsibilities of serving the milk produced by paying
remunerative price and serving customer by offering hygienic quality product
at a reasonable price throughout the year. Union is not in the business to
maximise the profit as in the case of private dairies and is acting as price
stabilizing force in the market. Projecting these to the customers will reinforce
the positive image of the organisation in customer’s minds as a caring
organisation which service to them as its motto.
Threats
1. After liberalization, entry barriers in the dairy industry eased for new entrants.
2. The competition from Co-operatives like Dodla, Heritage, Kamadenu.... etc.,
3. Private dairies procure milk at low cost from producers and sell milk resorting
to unethical trade practices. It is a marketing war in which union has to fight
by rules and other private dairies do not fight by rules. Hence, there is no level
playing field for organization with social responsibilities to compete with
organizations with purely profit motive.
4. Some private dairies are selling homogenised milk, which appears rich. The
union cannot homogenize all its huge quantity of milk due to lack of
homogenizing capacity and increase in processing cost.
5. Plans of major companies like Reliance, ITC to enter into milk market in
future.
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MYMUL Organizational study
CHAPTER 3:
DETAILED
STUDY OF THE
DEPARTMENT
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MYMUL Organizational study
DETAILED STUDY OF THE DEPARTMENT
Procurement and input department
Purchase and Stores department
Production department
Marketing department
Finance department
Quality control department
Management information system department
Human resource department
3.1 Procurement and Input Department
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Manager (procurement & Input)
Deputy Manager
Assistant Manager
Extension Officer G-I
Extension Officer G-II
Extension Officer-III
Sr. Typist Steno
MYMUL Organizational study
Introduction:
Raw Material is the basic requirement of every organisation. The sequence of
bringing milk to MYMUL starts from the collection of milk from the individual milk
producer.
MYMUL procures raw milk directly from the farmers through the Dairy Co-
operative societies (DCS). MYMUL has got 71 milk procurement routes and each
route covers around 15 to 20 societies. DCS collects milk from producer which is
stored in cans and transported to MYMUL through trucks. If the main dairy is far
away from DCS, the milk is transferred to nearest chilling centre in order to chill the
milk so as to avoid the growth of micro organisms which is then transported to main
dairy.
MYMUL has got three chilling centres located in Hunsur, Kollegala and
Chamrajanagar. After collecting milk from various DCS, it will be processed in
MYMUL and supplied to the customers. Secondary items like packaging materials,
engineering materials are procured through calling tenders. The payment is made to
supplier of milk on weekly basis and the payment for the transport contractors is made
once in a fortnight. In case of shortage of milk, the Union purchases milk from other
dairy at inter dairy price.
The payment is made to farmers on basis of percentage of Fat and SNF
content at a min of 3.5% and 8.5%. The daily average milk procurement here is
3,12,000.
Function:
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Helpers
MYMUL Organizational study
DCS supervision: Extension officers will be visiting once in a month to DCS
to supervise the accounts and to guide the members for development of the
DCS.
Providing input activities to milk producers through DCS at right time.
Proper transportation of milk from DCS to dairy.
Proper utilisation of funds under government scheme.
The technical input programme of the Union mainly covers the following activities:
Animal Health Care
Artificial Insemination
Feeds and Fodder Development and Extensive Services
Procurement Graph (Avg. Kg’s/Day)
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MYMUL Organizational study
2008-09 2009-10 2010-11 2011-12 2012-130
50000
100000
150000
200000
250000
3.2 Purchase and Stores Department
43
Deputy Manager (purchase)
Assistant Manager (purchase)
MYMUL Organizational study
Introduction:
The purchase and stores department plays a vital role in the organisations like
MYMUL, where the core function is production. The purchase department performs
the function ranging from collection of indents from each department to purchasing
through general inquiry or tender. This section basically deals with the purchase of