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HASSAN MILK UNION
CHAPTER -1
INTRODUCTION:
As in every market the world mightiest are in India as elsewhere, theyare hunger for growth and push the market into technological up gradation
and shift the battle ground to this area of competence. The competition is
now on the horizon through promises to be different, the technology coming
in and into a liberalized market, where the consumer has suddenly worked
up to a new brand milk even has the old order straggles into modernization
of its product to a large position of the market might remain dull for milk and
milk products
As a major enterprise, the market milk industry is of comparatively
recent origin even in developed dairying countries (such as the USA) through
ancient written records report milk as an important food, it's processing and
distribution as a separate commercial business did not develop in those
countries until concentration of population in the cities reached a high level
in the middle of 19th century.
Dairy industry is of crucial importance to India. The country is the
world's largest milk producer, accounting for more than 13% of world's total
milk production. It is the world's largest consumer of dairy products,
consuming almost 100% of its own milk production. Dairy products are a
major source of cheap and nutritious food to millions of people in India and
the only acceptable source of animal protein for large vegetarian segment of
Indian population, particularly among the landless, small and marginal
farmers and women. Dairying has been considered as one of the activities
aimed at alleviating the poverty and unemployment especially in the rural
areas in the rain-fed and drought-prone regions. In India, about three-fourth
of the population live in rural areas and about 38% of them are poor.
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The milk processing industry is small compared to the huge amount of
milk produced every year. Only 10% of all the milk is delivered to some 400
dairy plants. A specific Indian phenomenon is the unorganized sector of
milkmen, vendors who collect the milk from local producers and sell the milk
in both, urban and non-urban areas, which handles around 65-70% of the
national milk production.
In the organized dairy industry, the cooperative milk processors have a
60% market share. The cooperative dairies process 90% of the collected milk
as liquid milk whereas the private dairies process and sell only 20% of the
milk collected as liquid milk and 80% for other dairy products with a focus on
value-added products.
The NDDB has recently put in place .Perspective 2010.To enable the
cooperatives to meet the new challenges of globalization and trade
liberalization. Like other major dairying countries of the world, the Indian
cooperatives are expected to play a predominant role in the dairy industry in
future as well. However, India is in the meantime, attaining its past glory and
is once again becoming .DOODH KA SAGAR.
Milk As such will not become a product. Milk produced from milk
producer generally, village former is collected and procured in dairy,
processed milk sachets are made and marketed to reach the consumer then
only milk becomes a product of the organization.
Milk is produced from the farmer or milk produced procured, processed
and marketed to customers in the cities. Since the milk purchased from
farmers or milk producers who lived in rural places of the district there by
the economic condition of the farmers are elevated. By the same time good
quality and vitalized milk is supplied to the consumers in the city areas. at
their feasible price the main aim of the NHPP milk unit is served by this at
every paisa and supply of milk.
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Gradually farmers within easy driving distance began delivering milk
over regular routes in the cities. This was the beginning of the fluid milk -
sheds which surround the large cities of today. Prior to the 1850s most milk
was necessarily produced within a short distance of the place of consumption
because lack of Suitable means of transportation and refrigeration.With
modern knowledge of the protection of milk during transportation, it became
possible to locate dairies where land was less expensive and crops could be
grown more economically. The milk supply of the large cities of the USA now
comes largely from 80 - 160 Km or more away.
Nearly all the milk in the USA before 1999 was delivered as raw
(natural) milk. Once Pasteurization was Introduced, It caught on rapidly,
mechanical refrigeration contributed to the rapid development of the factory
system of market milk distribution.
Even today, hospitality could be considered generous and warm only
with serving of milk products. Today, Indian milk products are the largest and
fastest growing segment of the dairy industry. Milk and milk products are
highly valued in Indian society as a source of nutrition. This concept has with
stood the test of time. Dairying took roots in the north- west part of the
Country and spread virtually to the whole of the sub-continent. In India,
some 70 million farmers in 500000 villages mostly produce milk in small
quantities.
Buffalo and cow, and to a limited extent, goat are the main milk
animal. Buffalo Constitutes some 54%, cow 43%, and goat 3% to India's total
milk output.
1. In India, the market milk industry may be said to have started in 1950-
51, when the central dairy of the Aare milk colony in Bombay was
commissioned.
2. Handling of milk in sophisticated milk unions (Oldest 1913: Allahabad).
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3. Long distance refrigerated rail- transport of milk from Anand to
Bombay since 1945.
4. Pasteurization and bottling of milk on a large scale for organized
distribution was started at Aare (1950), Calcutta (1959), Delhi (1959),
Worley (1961), and Chennai (1963),
5. Milk plants were established under five year-plan for dairy
development all over India with the dual object of increasing the
national level of per capita availability of milk and ensuring better
returns to the primary milk producers. The main aim was to produce
more, better and cheaper milk.
The market milk industry in the advanced dairying countries of the
world has now reached high level in sanitary production, transportation,
processing, and distribution. Credit should also be given to producers,
distributors, and manufacturers of dairy equipments for setting high
standards.
Dairy technology is the scientific basis of maintaining the herd of
cows and buffaloes, collecting and preservation of large quantity of
milk and producing to meet the demand of urbanization.
The Karnataka milk federation is most popularize KMF, evolved
itself as a premier and most profitable dairy farmers organization in
the state of Karnataka. Karnataka dairy development corporation was
formed; the company grew itself fast and as its spreads the wings of
new found rural economic activity. These organized dairies have been
successfully engaged in the routine commercial production of
pasteurized milk products.
Milk is highly nutritious and majority of Indian population rely on
milk for their protein supplement, milk is obtained by breed cows and
buffaloes, either manually or through satirized milk cream, ghee,
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cheese, condensed milk protein are the dairy products.
Increased population and its growth rate in relation existing milk.
Animals, caused an imbalance between the demand and supply
condition of milk production and marketing of milk has been considered
a profitable business further the excess depending in agriculture
concentration of population in rural areas the nature of unemployment
and underemployment diverted the attention of the rural folk to
consider milk production as a subsidiary occupation.
CHAPTER-2
PRINCIPLES OF THE COMPANY
AIMS AND OBJECTIVES
Hassan co-operatives milk producers societies union is
completely an autonomous body consisting of representatives from milk
producers as policy makers. The area of operation is districts of Hassan,
kodagu and Chickmagalore. The milk union also aims at sustainable
development of rural areas through proper planning, training, strict
implementation and follow up of progress of various schemes offered
by both state and central government.
Formation of dairy co-operative societies under the principle of co--
operation to encourage small, marginal farmers and agricultural labours
to take up dairy activities.
To provide continuous and remunerative market for the surplus
milk in the rural areas.
To supply quality milk to customers in the urban areas at a
competitive price.
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To provide necessary technical inputs to farmers to produce good
quality milk and to facilitate increase in milk yield.
To provide self-employment to rural folk and to make them
economically self-sustainable by which the migration of rural folk to
urban areas is minimized.
COMPANY VISION, MISSION, GOALS and OBJECTIVES:
VISION:
The union thrives hard to adopt the mode and eco-friendly
technologies to produce milk and milk products of international standards tomake our presence prominent the global market
MISSION:
Hassan milk union aims to render the best services at nominal cost to
its members and to increase milk production and produce good quality milk
by paying remunerative sssprice throughout the year, thereby improving
their economic and social condition while ensuring high quality milk and milk
products to the delighted level of the consumer
GOALS AND OBJECTIVES:
The milk union was started 4th june 1975, they want to develop their
milk union like AMUL CO-OPERATIVE SOCIETY .
To increase quality of milk.
To increase their sales from 1,25,000-2,00,000 litres per day in future
years Increase the sales by conducting many programs like consumer
information program, consumer diary visiting programs, hotel own
information program etc.
To increase the members of the union also.
To regularly supply the NANDINI milk to all the cities according to
customer needs.
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The securtary of HAMUL:- Mr.kumar
The production manager of HAMUL:- Mr. Shridar
The marketing manager of the HAMUL:- Mr. Shivpraksha
The financial manager of the HAMUL:- Mr.Rangaswamy
The HR manager of the HAMUL:- Mr. NAGARAJ B.R
CHAPTER-4
PRODUCT PROFILE
ACCEPTANCE CRITERIA FOR DIFFERENT OF MILK PRODUCTS
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NANDINI HOMOGINIZED MILK:
It is a pure homogenized, skimmed,
pasteurized, processed & packed hygienically.
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S
L.
N
O
TYPE
OFPRODU
CT
COLOUR BODY&
TEXTURE
FLAVO
UR
FAT
%
SNF
%
MOIS
TURE%
%
FFA(Olei
c
acid)
ACIDI
TY %LACTI
C
ACID
1 CURD Creamish
yellow
Soft & Firm Sweet
mildly
acid
3.1 8.50 - - 0.9
Maxim
um2 PEDA Pale
yellow
with slight
brown
tinch
Soft &
granular
- 20
Mini
mum
- 15-20 - -
3 GHEE Bright Medium to
coursegrains with
very little
liquid fat
Nauty
orslightly
cooked
99-
99.5
- 0.5
Maximum
1.4
Maximum
-
4 BUTTER
MILK
White
with slight
greenish
- Masala - - - - 0.4
Maxim
um
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It contains 4.5 % fat & 8.5% SNF. Rich, creamier and tastier milk.. Ideal
for preparing home-made sweets & savories. Available in 500ml and 1
ltr packs.
Energy 60KCAL.
Carbohydrate 4.7g.
Sugar 4.7g.
Proteins 3.3g
Minerals 0.7g.
Calcium 124mg.
Vitamin A 35ug.TONED MILK:
It is milk which contains 3.0% fat and 8.5% SNF.
Available in 500ml and 1 ltr packs
Energy 60KCAL.
Carbohydrate 4.7g.
Proteins 3.3g
Minerals 0.7g.
Calcium 124mg.
Vitamin A 35ug.
NANDINI GOOD LIFE:
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Cows pure milk, UTH processed, bacteria free in a tamper-
proof tetra-fino pack which keeps this milk fresh for 60 days withoutrefrigeration unit opened. Available in 500ml Fino and in 200ml Bricks
at premium stores across the state.
NANDINI SLIM:
Cows pure milk, homogenized, skimmed. UTH processed
milk bacteria free in a tamper proof tetra- fino pack which keep the
milk fresh for 60 days without refrigeration unit opened. Nandini Good
Life Slim skimmed milk is 99.5 % fat free. Available in 500ml Fino and
in 200ml Bricks at premium stores across the state.
CURD:
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It is made from milk. Its thick and delicious. Giving
all the goodness of homemade curds.
Available in 200gms and 500gms sachet.
Energy 58KCAL.
Carbohydrate 3.9g.
Fat 3.3gMinerals 0.7g.
Calcium 120mg.
Vitamin A 35sssg.
BUTTER MILK:
Butter milk is a refresing health drink. It is
made quality curds and is blended with fresh
green chillies, green coriander leaves, asafetida
and fresh ginger Buttermilk is packaged in
200ml packet.
Nandind spiced Butter Milk is a refresing health
drink. Nandini spiced butter promotes health and easy digestion. It is
available in 200ml packs and is priced at most competitive rates. So
that is affordable to all sections of people.
NANDINI PEDA:
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No matter what you are celebrating! Made
from pure milk using sugar. Nandinipeda is a
delicious treat for the family. Store at room
tempreture approximately 7. Available in
250gms packs containing 10 pieces each. Self
life of 6 days at ambient temperatures .
INGREDIENTS: Milk solids, sugar.
Energy 411KCAL.
Total fat 17.1g.Vitamin A 196ug.
Cholesterol 51mg.
Carbohydrate 51.3g.
Proteins 12.9g.
Calcium 618mg.
MUFA 4.4g.
PUFA 0.5g
NANDINI GHEE:
A taste of purity. Nandini Ghee made from pure
butter. It is fresh and pure with a delicious flavor.
Hygienically manufactured and packed in a special
pack to retain the goodness of pure ghee. Available in
200ml, 500ml, 1000ml, sachet, 5 ltr tins and 15.0 k.g
tin.
Self life of 6 months at ambient temperatures.
NANDNI MYSORE PAK
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Fresh and tasty, Nandini Mysore Pak is made
from quality Bengal Gram, Nandini Ghee and
Sgar. Its a delicious way to relish a sweet
moment Available in 250gms, 500gms,
ppcccontainer shrink packed to preserve
freshness. Can be kept for 7 days.
GULAB JAMON MIX
Great way to those soft and juicy jamoon
treats. At home! NandiniGulabJamoon Mix is
made from Nandini Skimmed milk powder,
maid, soji and Nandini special grade Ghee.
Available in 100gms and 200gms standy
pouch with a five layer foil lamination.
FLAVOURED MILK
Sterilized flavoured milk, a nutritious and
healthy drink and an all season wholesome
drink available in five different flavoures-
pineapple, rose, pista, badam, and natural
orange. Apart from refreshing energy.
Available in 200ml.
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ICE CREAM
Nutritious, delicious creamy ice cream is
manufactured at ISO 9002/HACCp certified
mother dairy modern plant. The range includes
vanilla, strawberry, pineapple, mango,
chocholate, butter scotch, kesarpista, orange
and mango candies, chocobar and ball varities
vanilla..
Available in 500ml and 1ltr packs.
MILK POWDER
Enjoy the taste of pure milk! Powder made
from pure milk, processed and packed
hygienically.
Available in 50gms, 100gms, 200gms, 1 kg, and
25 kg pack.
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CHAPTER-5
INDUSTRY PROFILE
Introduction
ORIGIN OF THE DAIRY INDUSTRY
The Indian Dairy Industry has made rapid progress since
independence. A large number of modern milk plans and product
factories have since been established. These organize dairies have been
successfully engaged in the routine commercial production ofpasteurized milk and milk products. India is the worlds largest milk
producer certified by International Dairy INDUSTRY. This is the reason
for the recognition of India as a dairy giant by the United Nations
Food & Agriculture Organization (FAO). India has become the worlds
No.1 milk producing country, with output in 1999-2000 (marketing year
ending March 2000) forecasted at 78 million tones. The annual rate of
growth in milk production in India is between 5-6 percent, against the
worlds at 1 percent . Indias annual milk production has more than
trebled in the last 30 years, rising from 21 million tons in 1968 to
an anticipated 80 million tons in 2001. This rapid growth and
modernization is largely credited to the contribution of dairy
cooperatives, under the Operation Flood (OF) Project, assisted by the
many multi-lateral agencies, including the European Union, the World
Bank and WFP (World Food Program me), In the Indian context of
poverty and malnutrition, milk as a special role to play for its many
nutritional advantages as well as providing supplementary income to
some 70 million farmers in over 5,00,000 remote villages.
Milk is the raw material of the dairy industry, which cannot be
created artificially and stored for long time. The term MILK MARKET
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refers to the fluid wholed that is sold to the individuals usually for
direct consumption. The Dairy Industry has come up to the present
stage because of the National Dairy Development Board and Co-
operation of the Government. Effective and coordinated efforts of the
National Dairy Development Board lays down rules and regulations to
be followed by the various cooperatives milk societies. AMUL (Anand
milk union ltd) was a pioneer in starting a cooperative milk products
society and there after many cooperative societies where started.
World Bank also had given credit of Rs.78 crores for starting another
society has Amul in 1975.
In the year 1970 Operation fund gave another boost to thedairy industry by providing soft loans, subsidies, plans, etc These
made dairy industry flourish and the members of the cooperatives milk
producers society where able produce a large amount of milk. The
various activities sostarted continued under Operation Flood-II & III.
Operation Flood, launched in 1970, has been instrumental in helping
the farmers mould their own development. Thus, helping reach milk to
consumers in 700 towns and cities through a National Milk Grid. It
also helped eradicate the need for middlemen there by reducing the
seasonal price versions. As a result of the cooperatives structure the
whole exercise production and distribution of the milk and milk
products has become economically viable for farmers to undertake on
their own. In this manner the farmer himself can enjoy the fruits of
his own labour, instead of surrendering a majority of the profit to
corrupt middlemen. Operation Flood, which started in 1970, conclude
its 3rd phase in 1996 Operation Flood Hailed as Indias most
ambitions and highly successful rural development project has turned
dairing in to a cross economic activity in India. The World Bank for its
achievements has launched the 3rd and final phase of Operation
Flood , which culminated in April 1996 Operation Flood , has
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helped knit ten million farmers members, spread over 70,000 villages
in to a catalyst of White Revolution in the country.
As India enters an era of economic reforms, agriculture,
particularly the livestock sector, is the position being a major growth
area. The fact that dairy could play more constructive role in the
promoting rural welfare and reducing poverty is increasingly being
recognized. For example, milk production alone involves more than 70
million producers, each raising one or two cows / buffaloes.
Company can assess from the present scenario that Dairy
Industry is one of the most important industry with a high level of
razor-edged competition. Competition is many due to the large numberbrands in the market and milk being a staple food to almost every
human being. Even today the leading nation is one, which is capable of
obtaining food in abundance for their people.
The Military Dairy Farms ( oldest in Allahabad, 1889), the
beginning salient features of the market of milk industry so far have
been: MARKET OF MILK
INDUSTRY IN INDIA:
In organized milk handling was made in India with the
Establishment of the following:
Handling of milk in co-operative Milk Union ( oldest: Allahabad,
1913 ) established all over the country on a small scale in the
early stages.
Pasteurization and bottling on a large scale for organized
distribution was started long distance refrigerator rail-transport of
milk from AMUL to Mumbai since 1945.
As Aare (1950), Worley (1961),Calcutta ( Haringhata, 1959), Delhi
(1959), Chennai (1963), etc.,
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Establishment of milk plant under the five-year plan for dairy
development all over India. These were taken up with the dual
object of increasing the national level of milk consumption and
ensuring better return to the primary milk producer. Their main
aim was to produce more, better and cheaper milk.
Actual expenditure of the milk industry in Indias first three Five-year
plans:
Plan period ExpenditureI five year plan (1951-55) Rs. 7.8 CoresII five year plan (1955-61) Rs. 12 CoresIII five year plan (1961-66) Rs. 36.6 Cores
GROWTH & DEVELOPMENTOF THE INDUSTRY:
Until the year 1940, there was very little published information
of the method of preparation and use of these products. The credit
for the publication on the subject goes to Dr.W.B.Davis, the first
director of Dairy Research. Within a span of three or four decades
since Dr.Davis book arrival, considerable research had been conducted
at the National Dairy Research Institute and other places on
indigenous dairy produces.
Since then on the Dairy Industry had begun to grow at a rapid rate.
There has been a tremendous efforts put in by the various
organizations to assure good quality milk to the people and the saying
of All that is white is pure milk came to existence.
Providing proper infrastructurefacilities has increased the livestock
population. Some efforts have been made to study a few breeds and
taken up their genetic improvements through the selection mostly in
the institutional farms. Such studies will result in some scientific
information, which has been analyzed to these breeds and to develop
the method for their genetic improvements. The increasing demands
for foods of animals origin and other economic circumstances
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Milk is rich in energy giving fats healthy giving vitamins body
buildings proteins and bone forming minerals which help build muscles
you need to throw ball or climb a tree. One 200 ml glass of milk
provides a power pack of nutrients a child needs daily. This is how a
glass of milk fulfills your daily requirements of nutrients in
percentage terms.
Sl.No Species Water Fat Protein Lactose Ash1 Cow 86.6 4.6 3.4 4.9 0.72 Buffaloes 84.2 6.6 3.9 5.2 0.8
Today India is the one of the global dairy industry. Karnataka
milk federation which most populer as KMF, evolved itself as a premierand most profitable dairy formers. Organization in the state of
Karnataka. It isesthablished in 1975 to implement project. The
company grew itself fast and as it spreads wings of new fund rural
econamic activity. Dairy all over the state, the agenesis of co-
operative body took the shape of KMF in 1983 entire the state 13
district co-operative milk union dairy activity organization of dairy co-
operative milk union executive the various parameters of dairy activity
organization of dairy co-operative, milk routes, processing of milk,
distribution of milks it main stay.
Background.
Milk is a nutritive beverage obtained from various animals and
consumed by humans. Most milk is obtained from cows, although milk
from goats, water buffalo, and reindeer is also used in various parts of
the world. In the United states, and in many industrialized countries,
raw cows milk is processed before it is consumed. During processing
the fat content of the milk is adjusted, various vitamins are added,
and potentially harmful bacteria are killed. In addition to being
consumed as a beverage, milk is also used to make butter, cream,
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yogurt, cheese, and a variety of other products.
HISTORY OF HAMUL
The use of milk as a beverage probably began with the
domestication anima1s. Goats and sheep were domesticated in the area
now known as Iran and Afghanistan in about 9000 B.C., and by about
7000 B.C. cattle were being herded in what is now Turkey and parts in
Africa. The method for making cheese from milk was known to the
ancient Greeks and Romans, and the use of milk and milk products
spread throughout Europe in the following centuries.
One of the first glass milk bottles was patented in 1884 byDr. Henry Thatcher, after seeing a milkman making deliveries from an
open bucket into which a childs filthy rag doll had accidentally fallen.
By 1889, his Thatchers Common Sense Milk Jar had become an
industry standard. It was sealed with a waxed paper disc that was
pressed into a groove inside the bottles neck. The milk bottle, and the
regular morning arrival of the milkman, remained a part of American
life until the 1950s, when waxed paper cartons of milk began
appearing in markets.
In 1990, the annual production of milk in the United States
was about 148 billion lb(67.5 billion kg). This is equivalent to about 17.2
billion U.S. gallons (65.1 billion liters). About 37% of this was consumed
as fluid milk and cream, about 32% was converted into various
cheeses, about 17% was made into butter, and about 8% was used to
make ice cream and other frozen desserts. The remainder was sold as
dry milk, canned milk, and other milk products.
DAIRY INDUSTRY IN INDIA
Dairy enterprise is an important occupation of farmer. In
India near1y 70% of the people depend on agriculture. It is the
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backbone of India. Dairy is linked with agriculture industry to a large
extent Animal husbandry in India is an essential part of agriculture. It is
mainly a rural occupation closely associated with agriculture.
DEVELOPMENT OF DAIRY INDUSTRY IN INDIA.
During the Pre-independence year there was no serious
stress given to dairy industry. In 1886 the Department of Defense of
the British Government established the dairy farms for the supply of
milk to the British troops in Allahabad. Later, in 1920 serious
steps were taken by Mr. William Smith, an expert in dairy forming to
improve the milk production. There was discrimination done to the
Indians hence this led to the rise of the first milk union in India. In
Lucknow in 1937 called the Lucknow milk producers Co-operative union
Ltd.
AMUL
A situation prevailed in the case of milk about Pre In
dependence; when to exploitation by middlemen had forced the milk
producers to sell milk at throw prices. The answer to such a situationwas found in developing a system that enables milk producers to own
and operate not only their processing facility, but also the inputs,
delivery machinery, and the marketing of finished products.
The integrated approach first proved very successful in
Kaira-the AMUL in and through the Operation Flood Programme, aimed
to establish similar farmers organizations in 18 districts in the country.
The Programme, when implemented did face some preliminary problems,
but These were overcome, so much so that when the IBRD and World
Bank came forward to finance dairy projects in Karnataka, Rajasthan
and Madhya Pradesh. The results were that 12 milk producers
cooperative unions were established. Based on the success of these
30 unions; bodies owned by the farmers themselves. The other phase of
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dairy development and operation flood being implemented to bring the
total number of such district unions to 155, and cover some 10
million farmers. The success of these 30 unions have further
demonstrated that problems can best solved if the agency
implementing the programs is owned and operated by the
producers themselves, who employ the best professionals that the
responsibility of such an organization is not only to guarantee a
remunerative market for the rurally produced commodity by its
member producers, hut also guarantees a package of input for
enhancing production (milk) and ploughs back the profit for
further development. Again, in the case of milk, since marketing ofthe product was largely controlled by middlemen/trade/cattle
keepers/etc., the organized dairy was not in a position to pay a
better price to the milk producers. Market intervention was
therefore required to enable these dairies to supply milk to the
consumers at reasonable prices. This was the first time that food
aid skimmed milk powder, and butter oil in this case-was used
to prime the pump of the modern dairies in four metropolitan
cities (Calcutta, Bombay, Delhi and Madras), and permit them to
demand on all much large scale. The funds generated through
the sale of skimmed milk powder and butter oil were used to
build up farmers organizations in the milk sheds those supplies
to these metropolitan cities.
World Bank came forward to finance dairy projects in
Kamataka, Rajasthan and Madhya Pradesh. The results were that 12
milk producers cooperative unions were established. Based on the
success of these 30 unions; bodies owned by the farmers
themselves. The other phase of dairy development and operation
flood being implemented to brig the total number of such
district unions to 155, and cover some 10 million farmers.
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The success of these 30 unions have further
demonstrated that problems can best solved if the agency
implementing the programme is owned and operated by the
producers themselves, who employ the best professionals that
the responsibility of such an organization is not only to
guarantee a remunerative market for the rurally produced
commodity by its member producers, but also guarantees a
package of input for enhancing production (milk) and ploughs back
the profit for further development. Again, in the case of milk,
since marketing of the product was largely controlled by
middlemen/trade/cattle keepers/etc., the organized dairy was not in aposition to pay a better price to the milk Producers. Market
intervention was therefore required enable these dairies to supply
milk to the consumers at reasonable prices. This was the first
time that food aid skimmed milk powder, and butter oil in this
case-was used to prime the pump of the modern dairies in four
metropolitan cities (Calcutta, Bombay, Delhi and Madras), and permit
them to demand on all much large scale. The funds generated
through the sale of skimmed milk powder, and butter oil were
used to build up farmers organizations in the milk sheds those
supplies to these metropolitan cities.
The dairy and Animal Husbandry received serious attention
after the independence. There were lots many of progressive steps
taken by the government through five year plans. This led to the
formation of National Dairy Development Board in 1965 & thus in
1970 he decided to Bring a White Revolution throughout the
country, initially 10 states were selected were for this purpose
excluding Karnataka.
In Kamataka in 1974 an integrated project was launched
to restructure and reorganize the dairy industry on Co-operative
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principle of AMUL and to lay foundation for new direction in
dairy industry.
KARNATAKA MILK FEDERATION.
The first dairy in Karnataka was started in Kudige in
Kodagu district in 1955, further in June 1974; an integrated project
was launched in Kamataka to restructure and reorganize the
dairy industry on the co-operative principle and to lay foundation
for a new direction in dairy development.
In 1975, the World Bank aided dairy development was
initiated. The present Karnataka Milk Federation (KMF) came into
existence in 1984-as a result of merging of Karnataka Milk Dairy
Development Co-operation, small co-operatives and Karnataka Milk
Production Development and loose vendors.
KMF is the apex Body in Karnataka representing Dairy
Cooperatives. It is the third largest dairy co-operative amongst
the dairy co-operatives in the country.
To impart training, institutes at Bangalore andregional training intitute at Mysore functioning. Three nitrogen
plants are been set-up to supply nitrogen, which is used for
Refrigeration purpose. Three diagnostic centers have been set-up for
monitoring diseases.
Objectives:
Providing assured and remunerative market for all the milk
produced by the farmer members.
Providing hygienic milk to urban consumers.
To build village level institutions in co-operative sector to
manage the dairy activities. To ensure provision of milk
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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, etc.
FUNCTIONS OF KMF:
Co-ordination of activities between the unions.
Developing the markets for the increasing in milk production.
To make the brand Nadine as a house hold name.
Excellence in quality is to be maintained to lay a solid
foundation for wide Spread acceptance of Nadine products.
To increase the market share of Nadine
UNITS OF KMF:
KMF has the following Units functioning directly under
its control;
Mother Dairy, Yelahanka, Bangalore.
Nadine Milk Products, KMF Complex, Bangalore.
Cattle Feed Plants at Rajanukunte/Gubbi/Dharward/Hassan.
Nadine Sperm Station at Hessaraghatta
Pouch Film Plant at MunnekolaluMarathhalli.
Central Training Institute at KMF Complex, Bangalore
Quality Control Lab at KMF Complex, Bangalore.
KMF has 13 milk unions throughout the state which procure
milk from primary dairy cooperative societies (DCS) and
distribute milk to the consumers in various towns/cities/rural
markets in Karnataka
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While the marketing of all the milk products is organized
by KMF, both within and outside the state, all the milk and milk
product are sold under a common brand name NANDINI|
CHAPTER-6
COMPANY POSITION IN THE MARKET
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PROFIT AND LOSS ACCOUNT FOR THE YEAR END 2011-2012
PRARTICULARS 2010-2011 2011-2012
Salary & other benefits 25789758.75 26394685.71
Administrative expenses 20049643.64 11263848.73
Rent,Rates& Taxes 854372.00 798670.63
Selling & Distribution expenses 35299686.92 40467861.37
Interest and Bank charges 1089602.89 14403213.29
P & I services 9006954.88 937448.01
Vehicle Repairs & maintenance 2879059.00 14403213.29Depreciation 19422241.70 3267023.22
Provision for Bad &Doubtfulldepts - 2070.00
Provision for taxiation 10850000.00 146837665.99
Net profit TRFD 25550334.54 20366603.73
TOTAL 36400334.54 30270630.73
Gross profit TFRD from Trading account 129913832.42 120241884.49
Other income 16957460.47 14904530.25
Interest on loans & advances 183271627.43 11691251.25
TOTAL 150791654.59 146837665.99
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The karnataka milk fedration having a brand of NANDINI. The
KMF having the the market share is according to company balance sheet and
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BALANCE SHEET FOR THE YEAR END 2011-2012
PARTICULAR 2010-2011 2011-2012
Share capital 85668000.00 97212000.00Share suspence 2354225.08 858291.37
Dep.& other funds 206830261.33 247210800.56
Profit & Loss a/c 25550334.54 20360603.73
Loans 21918866.98 18721214.00
Grants & Subsidies 61165358.21 53404008.07
Current liabilities 191870695.60 483746086.59
Provisions 30580119.93 40225247.04
TOTAL 625937861.67 961738251.36
Assets
Cash on hand 97132.10 160085.00
Cash at bank 77903046.97 40694943.25
Investment 99419304.33 192532859.00
Fixed assets 271992304.92 339054546.76
Current assets 124881275.67 142511715.65
Loans & advances & Deposits - 26250.00
Sundry debtors 15210474.31 29136783.54
Audit objectives 670350.02 362737.97
Stock on hand 35763973.35 217334330.20
Profits & loss a/c _
TOTAL 625937861.67 961814251.37
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company records is
85% in the market and the NANDINI products are top position in the market.
CHAPTER-7
CORPORATE SOCIAL RESPONSIBILITIES
ACTIVITIE OF HASSAN MILK UNION:
A. Organization of Dairy Co-Operative Societies :
As at the end of July- 2012, 1332 societies have been registered
of which 1252 are functional. Out of functional societies 449 are women
societies 199 step women societies which are functioning to enhance the
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social and economical condition of women.
B. Membership Enrolment :
As on 31st July 2012, 189417 members have been enrolled. Out of
the total 76289 are small farmers, 54889 are marginal farmers, 24443 are
agriculture labors and 33796 are other big farmers, 13010 belongs to SC
members, 4619 belongs to ST members. 70801 members are women.
C. Milk Procurement Activities:
The present average milk procurement from 1252 milk societies
is around 619977 kgs/day. During the month of July-12 the averageprocurement /DCS/day is 495 kgs and the average transportation cost per kg
of milk procurement is 32 paisa. The average fat is 4.05% and average SNF
is 8.50 %.
Input Activities :
a. Veterinary Facility :
It is covering all societies and giving veterinary facility.
b. Artificial Insemination :
To improve the breeding facility there are 18 single AI centers and 91
Cluster AI centers working in the union area. These centers covered around
84% of the DCS. An average of 30,000 inseminations is carrying out every
month. 4200 male cows and 4300 female total 8500 cross breed cows have
been born during July-2012.
c. Feeds and Fodder :
The union is guiding the farmers and the producers at the village level
in growing moderninised fodder. Ex. union is supplying C01, C02 and naepier
roots and SSG seeds, cow pea seeds and seasonal seeds to the producers.
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The union is also arranging straw treatment demonstration. The union is
supplying around 4000 metric tones of cattle feeds and an average 15000
kgs of mineral mixtures to the society members. Nearly 98% of the
functional societies have been covered under cattle feed sales.
d. Training facilities :
Training will be given to the milk society secretaries, testers and
management committee members. DAM (dairy animal management) is given
to the producers. This training is given in central training institutes, Mysore
owned and managed by KMF Bangalore.
Other programmes :
a. Step programme :
Under this, women members have been enlightened with education,
nutrition, legal matters. SHG (self help group) the main purpose of step
programme is to provide better socio-economic status to the women
members
b. Yashashwini health programme :
Under this scheme, those who have become members of this scheme
will get medical benefits like operation charges.
c. Total quality management (TQM) :
The union is encouraging clean milk production programme at
village level. The union has obtained ISO 9001:2000 certifications.
There are 19 bulk milk coolers and 108 automatic milk collection
centers which are functioning in the milk societies.
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CHAPTER-8
FUTURE PROSPECTS FOR THE COMPANY (Competitive Edge )
COMPETITION:
The Nandini milk is facing lot of competition in the market the
prime competitors areprivate players like,
Krishna.
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Arogya.
Spurti.
1. INCREASING THE AVAILABILTY OF NANDINI MILK AND
PRODUCTS THROUGH OUT DAY IN THE MARKET:
a) By expanding the retail market in the union area.
1) Identifying the uncoverd areas of distribution and appointing new
retailers in such areas to expand the local market.
2) Introduction of Adhoc day route exclusively for Milk products
distribution in the union area.
3) Opening of 4 new Nandini Milk parlour at Alur,Somvarpet,Arakalgud.
4) OpeningofNandini Milk parlour at Birur Railway Station.
b) Strengthening of existing Milk parlours,Depots and Day
counters:
Particulers Hassan C.K.M Coorg Total
Milk parlours 17 3 5 25
Day counters 1 3 5 09
Depots 4 4 4 12
Retailers 201 179 275 655
There are totally 655 retailers,25 milk parlours,09-day counters and 12
depots operating in the union area. It is decided to stengthen these existing
outlets through building up of cold chain facilities by providing Bottle coolers
to retailers at the rate of 50% cost and free supply of insulated boxes and
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introduction of insulated Transport vehicles to the door step of retailers and
extended hours of milk supply .
2. ENHANCING EFFECTIVENESS OF CONSUMER AWARENESS
PROGRAMMES
To persuade consumers,who are purchasing loose milk, or
Competitors milk,to purchase Nandini milk.This objective is most suitable
for our Union since their market share is less
To create awareness among existing and prospective consumers
about:-
a) The Organization.(HCMPSULtd).
b) The Quality products and Services available.
c) Dairy plant activities-hygienic milk handaling practices of
Nandini Vis a Vis loose milk.
d) Health hazards of consummingadultered milk.
e) Quality and hygienic aspects of sachet milk and milk products.
f) Dairy visit by School children, consumers and mahilamandals.
g) Education Programmes on Milk and Health at schools and
public places.
h) Organization Milk testing programmes at public places.
3. CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY
PROBLEMS:
A core team constituting of officers from plant, quality Solving the
problems control,marketing have been formed to implement the strategies
of SMP for implementation.This team would sit every day for 15 minutes with
Manager (dairy) and thrash out problems faced by the marketing staff
Problems noticed and actions intiated are to be recorded every day. And
appraise the M.D and conduct review meeting once in a month.
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4. SALES PROMOTION ACTIVITIES:
Sales promotion is a marketing activity that provide extra value or
incentive to sales force, distributors,and the ultimate consumers and can
stimulate immediate sales.
(a) Group Insurance and is continued till 2014:
The proposal of providing Group Insurance facility to retailers which is
in existence and is continued during 2012-13 also.
(b) Brand Advertisement,Hoardings flex adds,Insulated Vehicle and Wall
paintings, Radio programmes, T.V ads, and Awareness programmes will
be
continued during 2012-13 also.
(c) Supplying posters, Flex Boards, Glow sign Boards, Tarpaulin bags to
Retailers
and organizing retailers tour progamme, Training programmes etc..
(d) Providing Bottle coolers and stabalizers at 50% Subsidy to the retailerswho
have increased the Sales at least by 20% compared to previous years
sales.
5. MOTIVATING THE CHANNEL MEMBERS.
A system to motivate and educate the channel members has been pn
posed for increasing the sales. A systematic awareness campaign would be
organized and all :he Nadine retailers will be contacted. This is planned by
meeting them regularly and invitng suggestion/feedback from them on a
regular basis. Retailer meeting will be conducted nce in six months. The
confidence of retailer to be obtained by service and by attending to their
routine problems. Rewarding the best performing retailers and his delivery
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boy for promote service is planned. Channel member will be oriented with
educational tours to the neigiboring unions training programmesso as to
acquaint with market devel.
6.ELISTING CONSUMERS FEED BACK FOR QUALITY ASSURANCE.
By preparing a set of questionnaire and during the feed back from th
customers. Will get as information about customers perception on Nadine
milk and milk pr ducts, quality packing and pricing etc.
By doing this we will get the results from the customers in case if the
-e are any problem we can rectify ,we can do this by pulling few question to
the customers a king about the quality pries shelf life packing satisfaction
etc. and also get the feed back a ab )ut competitors brands in the market.
7. CREATION OF GRIEVANCE REDRESSED CELL:
Since the market forces are driven by the milk union would
initiate focusing towards customer needs. In this direction, the
customers of Nandind to privilege by the kind of service provided to
them. Focus on consumer orientation could be established over period
of time. This system to be implemented with the help following
activities.
A Separate telephone line to the marketing, section of Hassan
and kudige dairy would be provided for benefiting channel members.
Further, the telephone no contact persons name to be published
the leading local dairy news papers and circulated to all retailers day
couters, depose parlors and govt institution.
1. The complaints to be addressed immediately and would be
rectified with in 24 hours.
2. Timing for placing milk and milk products indent would be
increased.(5.30pm to 8 am)
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If any complaint regarding quality and quantity is received, the action
to be taken by the mark / plants section. These sections have for to
be given certain delegation powers for accepting spoiled milk, leakage
milk due to machinery problems and any other consumers complaint
by attending them through systematic approach and recording the
same for MD approval.
Any product brought by either marketing field staff or any team
members or any retailers for any manufacturing defects the
compliments needs to be addressed immediately. Practice of running
between security, marketing department plant abd quality department
as to be avoided. A system of regresting the complaints and security
to acknowledge the product which can be checked by quality
department and upon gunnies, the product as to be replaced at spot
or is least by next day.
Each full staff (marketing) opening in there areas should bring
at least 1 milk sachet sample of all brands from the field once in a
month dairy and them checked for quality specification. The action
taken should be informed to the concerned retailers should be discuss
will in time writing. And this quality check with the retailers should be
discussed in the regular marketing section marketing.
8. CONSTITUTING EFFECTIVE REPLACEMENT / LEAKAGE POLICY.
Though there are no foolproof methods to solve this problem
seniors effort have to be made which should be important by and
large should be acceptable to all the channel members. It is very true
that the monitory loss suffered by the retailers managing the Leakey
packet is quick high as compared to the margins they get from
selling a pocket of milk. It is also very difficult to avoided leakage
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since the distribution is to be made through bad roads others
inconvenience circumstances.
However a systematic approach should be applied to the leakage
problem at the union level to ensure the milk pouches delivered at the
dairy dock at the leading time are not leaky and soundly packed. This
would be possible by implementing strict quality parameters at the
packing operation. There should be a proper monitoring mechanism at
the cold store and level during dispatch to ensure the supply of
unleakly pouches to the market. The following measures are planned
to over come the leaky problem.
Film quality testing programs.
Focus on discussion.
Proper maintenance and maintaining of packing machine.
Storing and required temperature before dispatch.
Talking proper care during transport to avoided damage.
Replacement of old cards.
HCMPSULtd ACTION PLAN FOR THE YEAR 2012-13
PRESENT SCENARIO
S.NO PARTICULARS HASSAN CKM COORG TOTAL
1 Population 446966 383049 317933 1147948
2 Estimated
Demand in LPD
89393 83667 95380 268440
3 Projected sale
of milk
50794 46197 53304 150295
4 Present sale of
milk in
LPD(2011-11)
42340 38477 44405 125222
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5 Loose milk sale
in LPD
17879 10648 9538 38065
6 Competitor
milk sales in
LPD
3950 4000 1900 9650
7 Market share
of Nandini milk
47.36 45.99 46.56 46.64
8 Market share
of competitors
milk
4.42 4.78 1.99 3.59
9 Market share
of Loose milk
20.0 12.7 10.0 14.18
Balance share is Considered as Utilisation for Self Consumption.
Note:
1. Population figures as per the year 2001 census (urban) and annual
projection.on
decinnial growth percentage.
2. Percapita consumption of milk:-
a) Hassan district : 200ml/day
b) Chikkamagalur district:
Chikkamagalur,Kadur,andTarikere : 200ml/da
Shingeri,Koppa,mudigere and N.R.pura : 250ml/day
c) Coorg district : 300ml/day
PRODUCTION ASPECTES OF THE HAMUL
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STRUCTURE OF THE PRODUCTION DEPARTMENT
In the organization the production department is the key for all
activities.The main raw material is milk which is procured as staked
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MANAGER(P&L)
HelppersClerks
Extension
Officer
Assistant
Manager
Deputy
Manager
Procurement
Wing
Technical
Inputwing
Deputy
Manager
Assistant
Manager
Clerks
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earlier. Every day it is planned for the disposal of incoming raw milk
as per the availability and indent from the consumers.
Production is the conversion of raw material into finished
product. AMUL production department is well planned and adequately
equipped manufacturing set up where the entire necessary
infrastructure is available.
In AMUL the raw milk is processed to from the good
quality of milk. During the processing, the milk is differentiated
depending on the contract of FAT and SNF.
(Solid not fat).
PROCESS
Once the milk is accepted the milk is chill to 4 c and
pumped into milk silos a bulk check is done and the milk as
processed as per the need.
Here pasteurization is done by heating the milk to 72 c
maintain that temperature for 15 seconds and chilled 4 c. this is called
as pasteurization. Once the pasteurization is done the milk is sent forretail packing of 500 ml, 1000ml sachets.
This is sachets or crated of (packed) in 12 ltr plastic crates
and in the cold at 4
TEST REASON
Temperature Be below 4 degree.
Clot on Boiling If mill curdles soon after billing milk is
rejected.Acidity Test To test the extent of acidity.(Which milk
having 0.13 1.17 percent of acidity that is
good milk).
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Alcohol Test To check the heat stability of milk.
Lactometer To check the density of milk.
Fat Test Percentage of fat determined.
SNF Test Percentage of SNF determined for pricing.
SNF=CLR+FAT/4+0.35(consent)
Districts and also to other dairies in the state and outside.
Dairies & Processing unit Capacities1. Hassan 1.2 Lakh lters/day (Expand upto 3
Lakh liters/day)2. Kudige in Coorg District 50,000 liters/day
SL.NO Chilling Centers Capacities
1. Birur in Chikkamagalore
District
20,000 liters/day
2. Holenarsipura in Hassan District 100000 liters/day
3. Channarayappttana 1,00,000
liters/day
Hassan milk union is carrying business of producing and
marketing milk and milk products, such as peda, curd, ghee, Butter milk.
Hassan milk union procuring milk from rural areas and providing input
activities to dairy co-operative societies like artificial insemination, supply
cattle feed, animal health care programs for the uplifment of the
producers.
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HASSAN MILK UNION
INFORMATION ABOUT DAIRY CENTERS:
S.N
O
PLACE INSTALLED
CAPACITY
liters/day
CAPACITY
UTILIZATION
litres/day
PERCENTAGE
OF
CAPACITY
UTILIZATION[%]
1 Hassan Dairy 1,20,000 2,94,098 245.08
2 Kudige Dairy 50,000 35,325 70.65
3 Holenashipura
Chilling centre
1,00,000 1,05,128 105.12
4 Birur Chilling
centre
20,000 57,516 287.58
5 Channarayapatta
na Chilling
centre
1,00,000 1,32,903 132.90
STORAGE OF MILK:
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HASSAN MILK UNION
SALE OF MILK:
S.NO YEAR AVERAGE DAILY
SALE
OF MILK
COMPARE TO LAST YEAR
PERCENTAGE
OF INCREASE
[%]
1 2007-08 90,186 14.65
2 2008-09 95,589 7.09
3 2009-10 1,09,578 13.45
4 2010-11 1,14,879 4.83
5 2011-12 1,25,197 8.98
6 2012-13[up to
jan]
32,095 5.51
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S.NO YEAR AVERAGE DAILY
STORAGE OF MILK
[in kgs]
COMPARE TO LAST YEAR
PERCENTAGE OF
INCREASE
[%]
1 2007-08 2,68,417 11.61
2 2008-09 3,33,718 24.32
3 2009-09 3,86,462 15.80
4 2009-10 4,02,067 4.03
5 2010-11 4,76,771 18.58
6 2011-12 5,98,245 25.48
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Learning Experience
During the course of study the application of managerial
theories in to practice has been understood. It helped to link the
theories, techniques and practice of management with different
activities of the organization. HASSAN MILK UNION. Has a wide range of
products, this plant is dealing with milk product.
During the period the Production process and the
systematic layout of the machineries was learnt. The plant is
systematically designed so that the production process is carried out
without any security are systematically arranged.
in the in that its a memorable movement.
COMPANY AT GLANCE:
Name : HAMUL.
Establishment year : 4th June 1975.
Date of registration : Day/ R.C.S/ 3657/ 76-77 Date-30/3/1977
Registered office : Karnataka milk federation (KMF) KMF hassan
dairy circle, hassan
Area of operation : Hassan, Kodagu, Chikkamagalur.
Location : NH48, Industrial area, B.M.Road, Hassan.
Customers :Agents, Wholesalres, Local consumers.
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Main dealings : Milk and Milk products.
Suppliers : Members andnon members of milk products, co-
Operative Societies.
Area coverd : 27 acres.
Brand name :NANDINI:
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BIBILIOGRAPHY
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1. Books
UPENDRA KACHRU (2007).Production andopetation management.
Publisher: ANURAG JAIN FOR EXCEL BOOKS.
S.K.BHATIA(2006) Human resources management.
Publisher: DEEP ANDDEEP PUBLICATION PVT.LTD.
2.Website.
www.google.com
www.kmfnandini.com