sagar final project

MYMUL Organizational study

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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.



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



CHAPTER-2

PROFILE OF THE

ORGANIZATION



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.



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:



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.



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.



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.



2007: Released 5 Lit Toned milk packet and 100g packet containing 10 No of 10

peda.

PRODUCT PROFILE

MYMUL manufactures the following products:



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



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.



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



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



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:

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.



>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.



*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



*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



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



*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

.



2.5 Organizational Structure and Organization Chart

ORGANISATION STRUCTURE

-

President

MANAGING DIRECTOR (MYMUL)

Manager (P&I)

Manager

Manager (Mktg)

Manager (MIS)

Manager (Finance)

Security supervisor

Deputy manager(Administration)

Board Of Directors



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



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.



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.



CHAPTER 3:

DETAILED

STUDY OF THE

DEPARTMENT



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

Manager (procurement & Input)

Deputy Manager

Assistant Manager

Extension Officer G-I

Extension Officer G-II

Extension Officer-III

Sr. Typist Steno



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:

Helpers



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)



2004-05 2005-06 2006-07 2007-08 2008-090

50000

100000

150000

200000

250000

3.2 Purchase and Stores Department

Deputy Manager (purchase)

Assistant Manager (purchase)



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

LPDE films, ghee films, corrugated boxes, cartons, sugar, nitric acid, machinery and

parts, vehicle spare parts, stationery items, oil and lubricants etc., except milk.

Purchase/Stores

Superintendent Purchase

Administration Assistant G-I

Administration Assistant G-II

Helpers



Once the purchased items arrive at the union premises, it is taken care by

stores section. Store then sends the material to the respective sections as per the

requirements. If the received materials are not used immediately it is kept into

different places as per its category for the future use. The damaged or obsolete items

are sold to the public through auction or other means.

Purchase Procedure

The purchase process starts when the Managing Director of MYMUL

approves the indent requests from different section and departments.

Document required: Indent along with the note approved by Managing Director.

1) Enquiry will be made with the registered manufactures,

dealers/distributors/suppliers etc.

2) Preparing comparative statement of the offers received

3) Samples quality checking wherever samples obtained

4) Rate analysis

5) Placing before the purchase committee for decision, and then obtaining

approval of the Managing Director or direct approval from the Managing

Director depending upon the sequences

6) Placing purchase order/work orders

7) Quality checking after receipt of material

8) Acceptance

9) Payment as per terms and condition

The purchase order consists of the following elements:

Supplier’s code number

Date of order

Mysore Dairy’s inquiry number

Supplier quotation number

Material code number

Description of materials



Units of materials to be purchase

Unit rate of material

Total amount of material

Discount (if any agreed)

Central/ Excise duty

Sales tax

Insurance charges

Delivery period

Payment terms

Signature of the approver

Store section

Store section acts as receiver and holder of purchased goods. Normally, it

purchases the materials on the basis of purchase order provided by the purchase

section. The purchase order basically contains materials required, quantity of material

and the department requiring that material. During emergency purchases, respective

departments can purchase the materials with the approval of MD. Then, it comes to

store section for record and used. The store department is using materials receipt

ledger, store indent book and daily register for efficient stock maintenance.

Division of Stores: General stores, DCS stores, Machinery and Spares.

Handling purchase order:

After the purchase order is received, store departments procure the type and

quantity of materials as mentioned in the purchase order.

After the materials for purchase is received from vendor, store department

prepares MRR (Material Received Report) and sends it to the concerned user

departments for the approval. The authority at user division checks the



specification of supply and approves it. Approval certificate is given either by user

division or quality control division.

Two copies of MRR are retained in the store, two copies are sent to purchase

department and one copy is forwarded to finance department for release of

payment. The MRR is registered in record register. The materials are given to the

user division by recording the material issued in the issue register against

prescribed indent form.

The rejected lot will be returned to the respective vendors.

If the materials are unused for 5 years, it is separated from the stock through co-

operative audit and placed in different location for resale. The difference amount

or loss is reduced from the book of account.

3.3 Production Department

Manager (Dairy)

Deputy Manager Office Staff

Assistant Manager



Introduction:

The main objective of this department is to follow up production schedule as

per plan and to maintain a good relationship with other departments in order to

upgrade the technical efficiency of production.

Production department is well equipped and has various types of highly

sophisticated machines imported from Sweden and Denmark. Once the milk is

received from P & I department, it is first weighed with the help of weighing bowl.

Later, it is poured in dump tank. Sample testing is made where fat and SNF content of

A A G-I A A G-II

Clerk Typist

Technical Officer

D S G-I

D S G-II

Dairy Operation Dairy Technician Dairy Worker



milk is accessed. The milk is then sent to production section through stainless steel

pipes.

Later, the raw milk is passed through plate chillers of variable capacity where

it is cooled up to 4-5 degrees Celsius. This cooled milk is further stored in a silo of

30,000 litres capacity.

Production process:

The raw material passes through different process before converting into the

finished good. Here, raw milk is the input material which is processed to deliver

consumable milk and milk products as finished goods.

Flow chart for milk processing at MYMUL:

Weighed at the weigh bridge and all the send

details are recorded.

Raw milk recovered through tankers

Weighed at the weigh bridge and all the sender

details are recorded



Received milk at the Reception desk

Filtration

Raw chilled milk is re-chilled to less than

Stand

Raw chille

Pasteurization

1. Balance Tank

2. Regeneration-I Auto desludging and

standardization3. Regeneration-III

Received milk at the Reception desk quality testing of milk by the shift

Filtration

Raw chilled milk is re-chilled to less than 5

Skim milk powder (SMP) for standardizing SNF

Quality testing of SMF by the shift in-charge of quality control

Raw chilled milk is re-chilled to less than 5

Quality testing of water &cream by the shift in-charge of quality control

Raw chilled milk is stored in raw

milk

A

A

Pasteurization

1. Balance Tank

2. Regeneration-I

3. Regeneration-III

4. Heating to more than 72

for less than 15 secs

Auto dislodging and standardization



4. Heating to more than 72 Phosphate test is done. If

found

5. Regeneration-III Inspect cleanliness of cans

6. Regeneration-I LDPE film

for

pasteurized standardized tonned

Test for Acidity

Flow chart for curds manufacturing at MYMUL

Pasteurization

1. Balance Tank

2. Regeneration-I

3. Regeneration-III

4. Heating to more than 72

for less than 15 secs

Phosphate test is done. If found positive reprocess the milk

Inspect cleanliness of cans

LDPE film for all specification

Pasteurized standardized toned milk, homogenized toned milk/ full cream milk is stored in pasteurized milk silos at less than 5

Milk is issued to packaging through HMST

Packed and stored in cold store at < 8

Dispatch to the market

Test for Acidity, Fat, SNF. If deviations found re-process the milk

B

B

Pasteurized toned milk to curds pasteurizer

Heat milk to 90 for 5 min & cool to 32-35

Quality testing of milk by shift in-charge of Q.C

division

Monitor the heating temperature of milk to 90

and cooling to 32-35



Clean in Place System (CIP System) at MYMUL

Every equipments and milk lines are cleaned once every day for milk

processing. Hence to process one litre of milk, one litre of water is used. To clean

these equipments and milk lines, sodium hydroxide and nitric acid of concentration

1% each are used. The procedure followed to clean these equipments and milk lines

are as follows:

Addition of starter culture @ 1.2 % to the milk for curd

making & mixing

Packaging in 200 g and 500 g sachets

Incubation at room at 30-35

Transfer into cold store after the acidity of curds is more than 0.55

%

Dispatch to the market

Test quality of starter culture for purity and

activity

Testing of LDPE film for all specifications

LDPE film for packing milk

Test for acidity, fat and SNF. If deviations found, reprocess the milk to manufacture the

product



1st step- Rinse with water

During this step, raw water is passed through equipment and milk lines and

milk residues are drained out.

2nd step- Lye (Sodium Hydroxide) step

During this step, lye is passed through equipments and milk lines so that fat

content stacked in equipments and milk lines will be drained out after few seconds

and the remaining lye solution will be collected in lye tank. Again, raw water is

passed through equipments and milk lines so that acid remains in the equipments and

milk will be drained out.

3rd step- Acid (Nitric Acid) step

During this step, acid is passed through equipments and milk lines so that

inside milk scaly will be removed and the acid will be drained out after few seconds.

The remaining acid solution will be collected in acid tank. Again, raw water is passed

through equipments and milk lines so that the acid remain in the equipments and milk

lines will be drained out.

4th step- Hot water circulation

Hot water at about 80 degrees Celsius is passed through equipments and milk

lines so that lines will be free from all the section.

5th step- Fresh water circulation Fresh water at room temperature is passed through

equipments and milk lines so that the lines will be perfectly cleaned and they attain

the room temperature.

3.4 Quality Control Department

Manager (Dairy)



Introduction:

MYMUL is committed to meet the ever-changing needs of the customers

without compromising the quality of its products. A separate quality control

department deals with the quality checking mechanism at the input, processing and

output level. The milk that comes to MYMUL by milk tankers goes through several

Deputy Manager Q.C

Assistant Manager Q.C

Technical Officer

Chemist Grade I

Chemist Grade II

Lab Technician

Helper



tests before acceptance. Apart from that, quality of milk and milk products is tested in

different levels of production and the quality is maintained.

Quality Objectives at MYMUL:

The basic objectives of the quality control department at MYMUL are:

Improve quality of raw milks received from chilling centres and bulk milk

coolers of the union

Ensure that all the batches of milk, curds, butter and ghee to be sent to the

market confirms to the standard stipulated under Bureau of Indian Standards,

prevention of Food Adulteration Act and AGMARK

Achieve better plant efficiency by carrying out all the maintenance schedule in

time

Achieve cost competitiveness by reducing the water consumption and energy

consumption in the plant to maximum extent

Maintain high standard for housekeeping in plant

To establish high quality brand in the market for its products

Function:

Quality is the essential attribute attached to any product. All products and

services that want to be a leader in the market should provide the superior quality.

MYMUL also follows the same strategy. Q. C department at MYMUL ensures the

quality of the milk and products to the prescribed standards. It is also responsible for

formulating the quality control policies and development of standards for the milk and

milk products from time-to-time. The standards are mandatory and include the latest

quality parameters.

The quality control department randomly assesses the quality of milk and the

products produced by the union. It ensures that they comply with the standards and

also provides instructions for improvement. Routine inspection of the dairy plant and

chilling units are part of the responsibility of quality control department to assess the

machinery condition, cleanliness and hygiene and processing parameters being



followed. The Q. C department tests the packaging materials purchased by the union.

The quality testing equipments are checked regularly. The new packaging materials

and newly introduced products go through rigorous quality control checks by Q. C

department. Usually Q. C department tests the purchased materials that are directly

concerned with food. Only after the approval of Q. C the materials purchased are

accepted and stored for record.

Tests carried out for milk and milk products:

Analysis of milk:

1. Argunoreptic test:

This test is conducted to smell, sweet and flavour of milk.

2. Adulteration test:

This test is conducted to see if the procured milk is adulterated with salt,

sugar and soda by the producers.

3. Clot On Boiling test:

This test is conducted to determine heat stability of the milk.

4. Fat and SNF test:

During this test, amount of SNF/FAT is tested. Basically, milk consists

of 85 % water and 15 % solid particles. Price of the milk received from

farmers is determined by its SNF/FAT content. Higher the SNF/FAT in the

milk, greater will be its price.

Analysis of curd:

There are various tests conducted for the curds in Quality Control department.

They are Acidity test, Yeast and Mould test, coli form test, Body and Texture, flavour

test, Fat and SNF test are also conducted to know the Fat and SNF percentage.

Analysis of Butter:



The various Quality Control tests conducted for butter are Butter Fat test, curd

content test, moisture test, Acidity test, yeast and mould test, coli form counts.

Moisture test is conducted to determine the moisture content of butter according to

predetermine levels of moisture content in the butter.

Analysis of Ghee:

The various Quality Control tests conducted for Ghee are moisture test,

Acidity test, RMV (Richards Mussel Value), PV (Paulsen Value) test and Fat test.

Here, the fat content, acidity percentage and moisture percentage of the ghee is

compared with the predetermined levels of the fat contents, acidity and moisture test.

Standardisation of milk and milk products

PRODUCTS FAT % (min)

SNF % (min)

ACIDITY % (max)

MOISTURE % (max)

Toned milk 3 8.5 0.16 -Double toned

milk 1.5 9 0.16 -

Standardized milk

4.5 8.5 0.16 -

Full cream milk

6 9 0.16 -

Butter 80 - 0.07 16Ghee 99.7 - 1.4 0.3Peda 20 - - 20Curds 3 8.5 0.95 -Lassie 1.3 NA 0.6 -

3.5 Marketing department

Manager (Marketing)



Introduction:

Marketing is a societal process by which individuals and groups obtain what

they need and want through creating, offering and freely exchanging products and

services of value with others. Marketing is a customer-centred philosophy rather than

product-centric philosophy. The job is not to find the right customer for our products,

but the right products for our customers.

Deputy Manager Marketing

Assistant Manager

Marketing Officers

Marketing Superintendent

Marketing Assistant

Helpers



Marketing is the vital function of any organisation irrespective of its type of

operation. In general, task of marketing department or marketer is to device marketing

programs to create, communicate and deliver value for consumers.

Functions:

Develop integrated business plan

Allocate sufficient budget for advertising and sales promotion

Develop effective advertising and PR campaigns

Develop efficient and effective distribution channel

Formulate strategies to out-beat competitor

Improve sales and market share for Nandini products

Create awareness for the Nandini products

Retain Nandini products as the market leader

Identify the market demand for milk and milk products

Perform regular market surveys to know the feedback of customers regarding

quality of the product & its service.

Marketing at MYMUL:

MYMUL is marketing milk and milk products in the brand name of

“Nandini”. The impressive growth in the sale of milk by MYMUL over the years is

due to its persistent efforts to maintain timely supply, maintaining quality and

attending to the complaints of consumers and agents with prompt follow-up action.

“FRESH & PURE” is the motto of MYMUL.

Mysore Dairy markets the following types of milk and milk products:

Toned Milk : 3.1 % Fat and 8.5 % SNF

Double Toned Milk : 1.5 % Fat and 9 % SNF

Homogenised Toned Milk : 3.5 % Fat and 8.5 % SNF

Full Cream Milk : 6 % Fat and 9 % SNF

Curd



Sweet Lassie

Ghee

Butter milk

Peda

Mysore Pak

Total milk sales (Avg. Litres/day)

Total curd sales (Avg. Litres/day)

2004-05 2005-06 2006-07 2007-08 2008-090

20000

40000

60000

80000

100000

120000

140000



2004-05 2005-06 2006-07 2007-08 2008-090

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

Distribution system:

Milk and milk products are distributed in two times, at morning and evening.

The distribution routes are allocated on the basis of route-wise, agent-wise and

quantity. Agents are appointed based on the regulation of the milk union and Co-

operative Act, after depositing some amount as a security deposit. Minimum distance

of one kilometre is maintained between one agent to the other. The agent takes milk

and milk products twice a day. After deducting the commission, the remaining

payable amount is remitted in two ways: cash or credit system.

Marketing strategies of MYMUL:

All the heavy vehicles are changed to medium insulated vehicle to ensure timely

supply

Brand building is taken up through acrylic sign boards, glow sign boards, truck

painting, wall paintings etc.,

To strengthen the Home delivery by encouraging the delivery boys by providing

them with water proof caps and bags.

Provision has been made to encourage the agents to sell more milk during flush

(Oct - Dec) by giving 20 ps. Incentive



School children/ Mahila Mandal (women) will be taken for dairy visit to develop

confidence about quality of milk

Door-to-door campaigning is taken to educate consumers about quality of

NANDINI milk compared with the other existing private brands of milk

Agents orientation programme is conducted every year with a view to encourage

them by solving their problems

Milk is made available throughout the day by opening “ANY TIME MILK

COUNTERS”

By restructuring marketing department more focus is given to key thrust areas in

market development activities like consumer education, identification of new

market for the existing products and planning of effective sales and promotion

programme.

Promotional measures adopted by MYMUL:

It is organising consumer awareness programme as a part of market development

program to create awareness on “Nandini” milk. It includes door-to-door

campaigns, organisational meetings and Mysore Dairy Plant visit

Distribution of Tarpaulin bags to door delivery boys

Wall painting was done

Advertisement campaigns in the electronic media

Public contact programme of one day is being launched in all the taluks of Mysore

district

Periodic survey of households to collect the feedback and to attend the

weaknesses observed

Training the marketing staffs at all levels regarding various aspect of promotion

Sales at MYMUL:

Sale of Milk and Milk Products (Avg. Per day)



Sl.No Product Quantity Rate (Rs.)

1 Toned Milk (Lit) 120557 19.00

Double Toned Milk 6162 18.00

Homogenised Toned Milk 6663 20.00

Full Cream Milk 10597 24.00

Total 143979

2 Curd (kg) 26001 24.00

3 Lassie (200 ml) 1177 6.00

4 Butter Milk (200 ml) 1332 5.00

5 Peda (kg) 165 200.00

6 Mysore Pak (kg) 40 230.00

7 Ghee (Lit) 2883 270.00

3.6 Finance Department

Manager (finance)



Introduction:

Finance department is one of the most important functional departments of

any organization. It aims at gathering the funds from various sources to meet the

Deputy Manager Finance

Assistant Manager Finance

Account Officer

Superintendent

Account Assistant G-I

Account Assistant G-II

Helpers



financial requirements of the organization. Capital budgeting, capital structure and

working capital management are three important areas of decision making by finance

department.

In capital budgeting, finance department develops efficient capital investment

plans for the favourable operation and growth of the company. It accounts for huge

amount of managerial time and energy.

In capital structure decisions, the means to finance the investment projects is

finalised. The optimum debt-equity ratio is decided in order to minimize the cost of

financing the projects. But it should not conflict with the organizational objectives.

With the increase in equity, the long-term liability of the firm is increased whereas the

increase in debt will increase the risk for the firm.

The difference of current assets and current liabilities is the working capital

for the firm. Working capital management deals with the short-term financial

management of the firm. It is very important for running the day-to-day financial

activities in the organization, without any interruptions. The credit policy to

customers and the inventory policy at organization are important things to be taken

care of. The appropriate sources of short-term financing are to be decided.

Objectives:

To protect the financial interests of the company

To help in achieving the business results

To monitor and control the collection and payment of funds



Liaison with banks and financial institutions

To monitor the cost control and cost reduction techniques

To monitor the budget and budgetary controls

To maintain a liquidity position

To access the working capital requirements

To maintain adequate funds to carry on the business effectively

Functions of finance department at MYMUL:

Prepares and maintains Journal book, Ledger accounts, profit & loss accounts and

Balance Sheet for each year

To analyze the financial position of the organization regularly by maintaining the

records of financial statements in efficient manner and analyzing it

Computes the working capital requirements and decides the sources to finance it

in a less risky and cheap way

Calculates the future requirement of funds and find out methods for making it

available

Maintains good relationship with the other departments by making them available

the financial information as and when needed.

Annual Turn-over ( in Lakh Rupees)



2003-04 2004-05 2005-06 2006-07 2007-08 2008-090

2000

4000

6000

8000

10000

12000

Net Profit ( in Lakh Rupees)

2003-04 2004-05 2005-06 2006-07 2007-08 2008-090

20

40

60

80

100

120



3.7 Human Resource Department

Deputy Manager (Administration)

Assistant Manager

Administration officer

Administration Superintendent

Administration Assistant G- I

Administration Assistant II

Helpers



Introduction

“Organizations are not mere bricks, mortar, machineries or inventories. They

are the people. It is the people who staff and manage organizations”

The success or failure of any organization is basically dependent on the quality

of human resource it has. Human resource gives the competitive edge to an

organization from the other. So, every successful company gives importance to its

human resource and maintains a separate department to deal with it.

Currently, MYMUL has 381 employees at total. To deal with the human

resources at MYMUL, there is a separate department called as Administration

Department or HR Department. It deals with all the dimensions of the employees at

MYMUL.

Recruitment and Selection:

A committee called “Expert Panel Committee”, the apex body of the union

which comprises of: MD of MYMUL, President of MYMUL, one representative from

the KMF, one from the Board of Directors of NDDB, one member from the Registrar

of the Co-operative Societies, is authorized for hiring new employee to any post or

cadres at MYMUL.

Procedure for Selection:

If a post is to be fulfilled by competitive examination, then after giving adequate

publicity in the newspaper, the appointment procedure will be carried out in the

order of merit from the list of candidates prepared by the selection committee or

expert panel

For direct selection, after giving adequate publicity in leading newspaper to the

recruitment, the appointing authority may determine in the order of merit

Incase if the post is being filled by internal promotion from its own staff, it is done

by selection of a person on the basis of merit and suitability in all respects to

discharge the duties of the post with due regard to seniority from among the



persons eligible to promotion will be screened by the committee prescribed by

MYMUL.

Age limit: For direct recruitment the age limit for general candidates is that one must

have attained the age of 18 years and not attained the age of 35 years.

Service benefits:

The employees of MYMUL are entitled to various service and welfare

benefits. Some of the benefits provided to employees are:

Dearness Allowance (D.A): It is provided as par with the state government

employees. The D.A amounts to 22.25 % of Basic Salary.

House Rent Allowance (H.R.A): Each employee is entitled for HRA. It amounts

to 13 % of Basic Salary.

Conveyance Allowance: The employees owing four wheelers get a conveyance

allowance equivalent to the cost of 15 Litres of petrol whereas the employees with

two wheelers get amount equivalent to 20 Litres of cost of petrol and others 5

Litres of petrol

Shift Allowance: A shift allowance of Rs. 2/day is provided to the workers

working in the second shift i.e. from 2 P.M to 10 P.M. and shift allowance of Rs.

3/day is provided to workers working in third shift i.e. from 10 P.M to 6 A.M.

Heat Allowance: An employee working in the boiler section get an additional

rupee per day plus 250 ml of milk for self consumption on duty.

Cold storage Allowance: The employee working in the cold store get an additional

rupee per day plus 250 ml of milk for self consumption on duty

Attendance Benefits: The employees who remain regular get the additional

amount of Rs. 30 per month and he or she is allowed to be late by an hour once a

month.

Bonus: The bonus is awarded to employees in accordance to The Bonus Act 1965,

amended by Indian government from time to time.

Milk at Subsidized rate: Each employee gets a subsidized milk facility. For every

litre milk purchase, ¼ litre milk at free all the time. During flush season (Oct –



Nov) when the procurement of milk is very high, each employee gets ½ litre of

milk at free

Free supply of Ghee: Each employee gets 500 g free supply of ghee twice a year.

Provident Fund: The provident fund facility is provided to employees as per the

Employees Provident Fund and Family Pension Fund Act.

Subsidized Canteen: Mysore Dairy has got one canteen to provide convenient and

cheap food facilities to its employees. Here, the employees get breakfast and

meals at very cheap prices.

Medical Facility: It covers the employee and his dependents, children less than 18

yrs. For Inpatient up-to Rs. 50,000 per annum is provided.

Leaves:

Earned Leave: An employee can take earned leave of 30 days per year, which if

not taken can be accumulated for a maximum of 240 days.

Half Pay Leave: The employees are also entitled to 20 days of half pay leave per

year.

Casual Leave: An employee can take 15 days casual leave in a year, but it should

not exceed 7 days in a stretch. Casual half day leave can also be taken.

Maternity Leave: Female employees are availed 2-3 months maternity leave. But

it is granted only twice in one’s entire service period.

Extraordinary Leave: It is only provided to the permanent employees and can be

granted only when no other leaves are left to the employee’s credit. This leave is

granted not more than 60 days at once and can be provided maximum of 5 times

in entire service period.

Promotion and Transfer:

Promotion is solely on the basis of sensitivity and experience. Transfers are always

accompanied by promotions



Induction:

After an employee is employed in MYMUL, he or she is made familiar to the union

and also know the objectives, values, functions and the operations. This helps the

employee to interact with senior staff members from various departments.

Training and Development:

Training and Development refers to the imparting of specific skills, abilities

and knowledge to an employee. Training refers to the process of imparting specific

skill. Development refers to those learning opportunities designed to help employee’s

growth. The need for training and development is determined by the employee’s

performance deficiency, computed as follows:

Training and development need= Standard performance – Actual performance

Benefits of Training and Development programs in MYMUL:

Improves the morale of the work force.

Helps people identify with organisational goals.

Improve the job knowledge and skills at all levels of the organization.

Aids in improving organizational communication.

Helps employees adjust to change.

Improves the coordination between employees.



3.8 Management Information System (MIS) Department

Manager (MIS)

Assistant Manager

System Officer

Assistant

Peon/Helpers



Introduction:

Management Information System (MIS) is the integrated part for providing

information to supporting operation, management and decision making in an

organization. It mainly deals with processing information and conversion of inputs

into outputs.

Function:

MIS is a systematic effort to furnish timely information to the top management.

The main function of this department is to collect information from the production

department everyday in the form of daily reports. The information collected is in the

form of the following:

Actual production (output).

Break down of machinery ( if any ).

Absenteeism of workmen ( if any ).

Raw material storage ( if any ).

Other details.

The information thus is received, classified, processed and analysed. After the

information is thoroughly analysed, the department combines it in the form of weekly

report and monthly reports. These reports are submitted to MD who in turn issues

instructions to the concern department for further actions. The department will take

care of avoiding the wastage and other production losses. It highlights the importance

of optimum utilization.



CHAPTER 4:

STUDY OF

SPECIFIC

MANAGEMENT

PROBLEM



Problems

Shelf life of some products or some Sweets like Peda, Mysore pak is less

Suppliers of milk that is the villagers are not happy with the price that is fixed for

the procurement of milk

There is a lack of awareness among the rural population about the various

products produced by MYMUL

Absence of proper communication channels

FINDINGS

Following are the findings during the study

MYMUL is serving rural region and helping for their upliftment, by way of

procuring milk through poor farmers through its formed societies and paying them

fair returns. It is contributing for economic upliftment of farmers.

MYMUL is earning profit year after year and it is not confronting any financial

problems.

MYMUL is equipped with fully automatic systems which ensure total quality

maintenance.

It has got its own quality control department with fully equipped laboratory and

equipments that help detecting any adulteration or any such other defects.

Through the use of advanced technology, MYMUL provides its customers

bacteria free and balanced nutritious milk.

The channel of communication is good in organization

Maximum employees are satisfied and have accepted the rules, regulations and

policies of the organization.



CHAPTER 5:

RECOMMENDATIONS

AND

CONCLUSION

SUGGESTIONS



The following suggestions may be provided to enable MYMUL expand its

market share and maintain the present market leadership as well as to improve its

position in the future years.

There should be more number of Nandini milk parlours in Mysore city and

outside.

Organisation should try to improve the packaging of the product to prevent

leakage.

Organisation should try to adopt more and more new technology and methods

of production to survive in this competitive market.

The company should provide some attractive schemes for the regular

consumers as well as retail sellers.

MYMUL must adopt professionalism in its all-working departments.

Facilities and benefits for Agents, Retailers should improve still better. So that

the turnover of the Retailers will be reduced and market shares will be

increased.

It must guide the consumers regarding its product by giving various

Demonstration programmes.

Online computer systems (website) have to be created by the organisation.

CONCLUSION



Mysore dairy started functioning from 1975 under the World Bank aided

Dairy Development Project and the union was registered on 23/11/1976. After

bifurcation of Mysore and Mandya District Co-operative Milk Producers Societies

Union on 1/4/1987, it is renamed as Mysore – Chamrajanagar District Co-op. Milk

Producers Societies Union Ltd. This dairy offers the best quality milk in Mysore-

PURE & FRESH.

The Mysore – Chamrajanagar District Co-op. Milk Producers Societies Union

is marketing milk and milk products in the name of “Nandini” are the best quality. It

has been catering the needs of majority of population of Mysore. The future goal of

the organisation is to computerize the whole organisation. The company should lay

emphasis on modernization and product diversification by which the company can

meet the fast changing requirements of the markets and to keep on with the

competitors. Now a days, competitors have been entering into this field in order to

exploit the utility of this industry.

The slogan of Mysore – Chamrajanagar District Co-op. Milk Producers

Societies Union is “QUALITY EXCELLENCE FROM COW TO CONSUMERS”

7 BIBILOGRAPHY



OFFICIAL WEBSITES:

1) www.kmfmymul.com

2) www.kmf.nandini/mymul.com

3) www.mysoremilkdiary .com

4) www.kmf/mys/nandini.com

BOOKS REFERED

1) 2006, Production Management, Kalyani Publications ,

K.Aswathappa

2) 2007, Human Resources Management, Himalayas Publications

Shashi.k.gupta

ANNEXURE

http://www.kmf/mys/nandini.com

http://www.kmf.nandini/mymul.com

http://www.kmfmymul.com/



INCOME AND EXPENDITURE ACCOUNT

Expenditure Amount Income Amount

Staff expenses 14674840.89 Trade profit 76117068.87

Administrative expenses 20889292.10 Other income 6469226.00

Tax 1065513.13 Interest on investment and deposits 521452.00

Selling distribution expenses 21201774.24 Technical income 5765314.90

Repair vehicle 288972.16

Interest and bank commission 3404705.65

Technical expense 7015099.35

Depreciation 9023336.00

Net profit 11309555.14

Total 88873061.66 Total 88873061.66

sagar final project

Documents

importance of milk

thesupply of milk

milk vendors

milk fat

cooperative milk union

milk producers of mysore

g daily intake of milk

growing children