+ All Categories
Home > Documents > project report on nandini milk

project report on nandini milk

Date post: 25-Nov-2014
Category:
Upload: amaresh-moolimani
View: 634 times
Download: 71 times
Share this document with a friend
Popular Tags:
98
TABLE OF CONTENTS
Transcript
Page 1: project report on nandini milk

TABLE OF CONTENTS

CHAPTER CONTENTS Page No.

Chapter - 1 INTRODUCTION

1.1 General Introduction 1.2 Objectives of the Study 1.3 Industrial Background of the Study 1.3. A. origin of the industry 1.3. B. growth and development of the industry 1.3. C. present status of the industry 1.3. D .Growth and Development

10121313131415

Chapter – 2 PROFILE OF THE RBKMU

2.1 Origin of the RBKMU 2.2 Growth & Development of the RBKMU 2.3 Present status OF RBKFMU 2.4 Future plans of the RBKMU 2.5 Organization structure and organization chart 2.6 SWOT analysis of the RBKMU

182526323334

Chapter – 3 DETAILED STUDY OF DEPARTMENTS

3.1 Purchase department3.2 Procurement & input Department3.3 Production Department3.4 Administration Department3.5 Finance Department3.6 Marketing Department

383945505560

Chapter – 4 STUDY OF SPECIFIC MANAGEMENT PROBLEMS

69

Chapter - 5 CONCULSIONS AND RECOMMENDATIONS 71

ANNEXURE

BIBLIOGRAPHY

Page 2: project report on nandini milk

LIST OF TABLES

Sl.No Chapter No.

Particulars Page No

1 II Year wise milk procurement 262 II Year wise growth rate 273 II Details of milk sales 274 II Annual turnover 285 II Profitability of the organization 286 II Details about chilling centre 307 II Details about Raichur district 308 II Details about Bellary district 319 II Details about Koppal district 3110 III Year wise milk procurement and sales 4511 III Product mix 4712 III Details about staff allowance 5113 III Details about other shift allowance 5114 III Details about price 60

SKNG Govt first Grade Collage Gangavathi 2

Page 3: project report on nandini milk

LIST OF CHARTS & GRAPHS

Sl.No ChapterNo.

Particulars Page No.

1 II Organization chart 332 III Hierarchy of procurement & input

department41

3 III Production process 464 III Hierarchy of production department 495 III Hierarchy of administration department 546 III Hierarchy finance department 687 III Hierarchy of marketing department 67

SKNG Govt first Grade Collage Gangavathi 3

Page 4: project report on nandini milk

CHAPTER - I

INTRODUCTION

SKNG Govt first Grade Collage Gangavathi 4

Page 5: project report on nandini milk

CHAPTER I

INTRODUCTION

1.1 GENERAL INTRODUCTION:

The ‘Indian dairy industry has made rapid progress since independence .a large number of

modern milk and milk produts factories have been established. These organized dairies have

been successfully engaged in the routine commercial production of pasteurized milk and milk

products.

India is the world’s largest milk producer that is certified by the ‘international dairy industry ‘.

This is the reason for the recognition of India as dairy giant by united nation’s food & agriculture

organization (FAO)’.

Milk is an important &essential commodity to human life. The significance of milk is human life

can be traced from Vedic period. Cow is considered as the “living god” & milk as “Amrutha” in

Vedic version. Milk is having immeasurable value in use, which has been explained in many

slokas Vedas. Upanishads & puranas

According to “charaka”, who is considered as the father of Ayurveda system of medicine holds

the important of milk as “milk has ten properties viz, sweetness, coldness, softness,

unctuousness, density, smoothness, heaviness, slowness and charity”

SKNG Govt first Grade Collage Gangavathi 5

Page 6: project report on nandini milk

Dr Benjamin spoke in his famous work “the common sense book of baby & Child Care”, states

milk contains almost all the food elements that a human being needs protein, fat, sugar, minerals

& most of Vitamins, milk is the only food contains a lot of calcium.

In the period of human civilization buying and selling of milk was considered as sin. The

inner measuring if this tradition was it is the duty of each person to posses milk cattle so as to use

milk for him self & distribute to other in the society, milk & cattle was considered the wealth of

the person.

The growth of civilization, modernized way of living, development of science &

Technology. The scientific outlook of commercialization of human values changed the social

structure and there by commercial outlook towards the production & marketing of milk has

emerged.

Increased population & 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.

SKNG Govt first Grade Collage Gangavathi 6

Page 7: project report on nandini milk

1.2 OBJECTIVES OF THE STUDY:-

The main objectives of the project are:-

The study consists of two folded objectives i.e. main objectives and additional objectives. The

main objective is to acquire practical knowledge about Raichur Bellary & Koppal milk union.

The additional objectives are e as follows:

1. To study the general information about dairy industry in India.

2. To focus the swot technique application in RBKMU.

3. To discuss the elaborate details about the determinants of RBKMU.

4. To find out the problem of the organization.

5. To make suggestions to solve the problem.

SKNG Govt first Grade Collage Gangavathi 7

Page 8: project report on nandini milk

1.3 INDUSTRIAL BACKGROUND OF THE STUDY

1.3. A. ORGIN OF THE INDUSTRY

Dairying is the production and marketing of milk, usually cow’s milk product. It includes the

case of cow of cow’s breeding, feeding, management product. The milk must be collected,

processed into dairy products and markets. All these operations have been improved by

physiological, genetic, nutritional, chemical, microbiological, technological, economical and

marketing research and development.

Cattle, goat and sheep have kept by man for the production of milk since immemorial. Milk

butter and cheese were common food of the people in those days. Hindu Vedas written before

1200 BC mentioned the use of butter as food. The Mongols in the middle ages prepared

concentrated milk in the past and probably dairy form and used them as a time of civil war by

Americans. Grim ode’s British patent for producing dried milk was issued 1855. But large

production of dried milk did not being until 50 years.

1.3. B. GROWTH AND DEVELOPMENT OF THE INDUSTRY

Early man found that the goat and sheep produced enough milk for his family. As the need of

milk increased, the cow becomes established as a producer of milk in large scale. By 18 th

century, the practice of selective breeding was established. It has been said that cow is machine

that converts raw materials (plant) into food in a surprisingly deficient manner. The method by

which cattle are managed in order to produce milk can be accomplished in many ways.

SKNG Govt first Grade Collage Gangavathi 8

Page 9: project report on nandini milk

Milk may be defined as the whole fresh, clean, lacteal secretion obtained by the complete

milking of one or more healthy milch animals (cow, buffalos). Milk is the only food, which is

designed by nature solely as a food. It serves as the foundation of an adequate diet. As milk

Contains protein, vitamin and fats, it is very important for pregnant mothers, growing children,

adolescent, adult, convalescents and patients alike. In the 20th venture the diary.

The dairy industry is witnessing rapid changes. In search of better returns, the industry is

widening its focus to include traditional milk products, and these are emerging as new profit

centres for the organised sector.

As of now, ethnic dairy products account for 90 per cent of all dairy products consumed

in India, according to Mr P.R. Gupta, Editor, and Technology of Indian Milk Products.

A Dairy India publication, this handbook on process technology modernisation has been

authored by dairy professionals such as Dr R.P. Aneja, former Managing Director of National

Dairy Development Board (NDDB) and President of the Indian Dairy Association; Dr B.N.

Mathur, Director, National Dairy Research Institute, Karnal; Dr R.C. Chandan, President of

Global Technologies Inc; and Mr A.K. Banerjee, Dairy Consultant and former Managing

Director of the Bihar State Dairy Corporation.

1.3. C.PRESENT STATUS OF THE INDUSTRY

Over the last two decades, institutes such as the National Dairy Research Institute and

NDDB have made possible assembly line production of ethnic dairy products such as shrikhand,

gulab Jamoon, paneer, kulfi, mishti doi, dahi and lassi.

While established names in the Indian dairy industry such as Amul, Nestle, Britannia and

Mother Dairy have made deep inroads into this booming market, small companies are following

by example in regional markets.

Some examples are Aarey in Maharashtra, Aavin in Tamil Nadu, Nandini in Karnataka,

Vijaya and Visaka in Andhra Pradesh, Milma in Kerala, KC Das in Kolkata and Bangalore,

Sugam in Vadodara, Mahanand in Maharashtra, Verka in Punjab, Parag in UP, Sneha in MP and

Parsi Dairy Farm in Mumbai.

SKNG Govt first Grade Collage Gangavathi 9

Page 10: project report on nandini milk

1.3. D FUTRE OF THE INDUSTRY

National Dairy Development Board (NDDB), an institution of national importance was

set up by the Government of India to promote, plan and organize programmes for development

of dairy and other agriculture based and allied industries along cooperative lines on an intensive

and nationwide basis.

Operation Flood (OF), an integrated dairy development Programme, completed its third phase on

April 30, 1996. The main thrust of the Programme was to consolidate the gains already achieved,

and to strengthen the dairy cooperative structure for sustainable development of the dairy

industry in India.

After the completion of Phase 3 of Operation Flood, a Programme Implementation

Agreement (PIA) was signed in 1997 between the EEC and the NDDB to strengthen

cooperatives at the grassroots level. Consequently, measures were initiated from September 1997

and are continuing during 2004-05.

Perspective Plan, 2010 

NDDB’s Perspective Plan 2010, developed in consultation with the 126 identified

cooperative milk unions and covering four thrust areas-strengthening the cooperative business,

enhancing productivity, managing quality and building a national information network-aims to

professionalise the working of dairy cooperatives in the emerging liberalized business

environment.

Strengthening the cooperatives

SKNG Govt first Grade Collage Gangavathi 10

Page 11: project report on nandini milk

NDDB’s Institution Building Programme to strengthen dairy cooperatives in aspects like

governance, management and economic viability, is being implemented in cooperative milk

unions across the country. NDDB also organized 8 training programmes during the year for milk

union personnel to enable them to facilitate these village level Institution Building programmes.

So far, about 150 union personnel have been trained. During the year 2004-05 105 board

members attended the programmes organized by NDDB to sensitize and involve the board of

directors of milk unions in institution building. 

Besides increasing the enrolment of women members in DCS and spreading awareness

among rural women about health, nutrition and literacy, the activities under Enhancement of

Women Involvement in Cooperatives (EWIC) have encouraged women to organize thrift groups

and take up income generation activities. So far about 6149 Thrift Groups have been organized

with membership of more than one Lakh women and collection amounting to Rs.9.88 crore.

About 75 per cent of this amount is being utilized to service the credit needs of members.

SKNG Govt first Grade Collage Gangavathi 11

Page 12: project report on nandini milk

CHAPTER-IIPROFILE OF THE RAICHUR BELLARY

KOPPAL MILK UNION

SKNG Govt first Grade Collage Gangavathi 12

Page 13: project report on nandini milk

CHAPTER II

PROFILE OF THE RAICHUR BELLARY KOPPAL MILK UNION

2.1 ORIGIN OF THE ORGANISATION

Richer, Bellary & Koppal Districts Co-operative Milk Producers' Societies Union Ltd.,

Was established in the year 1989 under the Operation Flood II covering three districts viz.

Raichur, Bellary & Koppal. It has a dairy plant at Bellary with a capacity The Union was

established in the year 1989 under the Operation Flood II covering three districts viz. Raichur,

Bellary & Koppal. It has a dairy plant at Bellary with a capacity of 30,000 Litres per day and a

20,000 Litres per day plant at Raichur.

It has four Chilling Centers at Gangavati, Dadesagur, Ittigi, Kustagi and Kudligi with

total chilling capacity of 0.45 Lakh Litres per day.  There 5 Bulk Milk Coolers in the Union.

The union of Raichur, Bellary and Koppal districts has its own geographical and historical

background being a high temperature place in the state the union raising its dairy development

program

According to conduction of “operation flood” in Karnataka, Karnataka co-operative milk

board started working for the dairy development from 1/4/1985.the Raichur and Bellary milk

SKNG Govt first Grade Collage Gangavathi 13

Page 14: project report on nandini milk

products co-operative society was registered in 12-12-1989.in recent days it also includes Koppal

district. Present the union is known as Raichur, Bellary and Koppal milk union.

The Union procures on an average of 0.51 Lakh Kgs.per day of milk and sells 0.42 Lakh liters

per day. Apart from selling milk it also produces Ghee, Curd, Lassi, Butter Milk and Peda. The

Union is also procuring Buffaloe milk separately and marketing Buffaloe milk under the brand

name "SHUBHAM".  

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

Body in Karnataka representing Dairy Farmers' Co-operatives. It is the third largest dairy co-

operative amongst the dairy cooperatives in the country. In South India it stands first in terms of

procurement as well as sales. One of the core functions of the Federation is marketing of Milk

And Milk Products. The Brand ' ' is the household name for Pure and Fresh milk and

milk products .KMF has 13 Milk Unions throughout the State which procure milk from Primary

Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various

Towns/Cities/Rural markets in Karnataka.

 Over view of the Organization:

1. Name of Company : Raichur, Bellary & Koppal milk union Ltd

2. Address : Bellary dairy,

Sanjay Gandhi Nagar,

Near Fire station,

Bellary-583104.

3. Year of Establishment : 01/04/1985

4. Registration : 12/12/1989 according to producer’s societies

Acts 1959.

5. Management Control : Selected by Board of Directors

6. Product Range : (I) milk in 2grades

a) Nandini

b) Shubam

SKNG Govt first Grade Collage Gangavathi 14

Page 15: project report on nandini milk

(ii) Ghee

(iii) Peda

(iv) Jamoon

(v) Other milk related products

7. Trade marks : Cow in oval

8. Water facility : from municipality and own wells and bore wells

9. Share capital : Rs82.34, 900 share capital collected from MPCS

10. Power facility : from K.P.T.C.L power grid

11. Initial investment : 7 cores Under NDDB

The union of Raichur, Bellary and Koppal districts has its own geographical and

historical background being a high temperature place in the state the union raising

its dairy development program

According to conduction of “operation flood” in Karnataka, Karnataka co-

operative milk federation started working for the dairy development from

1/4/1985.the Raichur and Bellary milk producers co-operative society was

registered in 12-12-1989.in recent days it also includes Koppal district. Present

the union is known as Raichur, Bellary and Koppal milk union.

M/S Raichur, Bellary & Koppal Milk Union LTD.,(RBKMUL) one of the

branches of KMF and the market leader in providing pure milk and milk products

to consumers. The Union of RBKMUL has its own geographical and historical

background being a high temperature place in the state the union raising its dairy

development programme. It surrounds great historical places like Hampi,

Anegundi, Hospet, Tungabhadra River, Hatti gold mines, many manganese and

iron ore mines with lots of village areas that make union easy to collect the milk

and create new co-operative society.

SKNG Govt first Grade Collage Gangavathi 15

Page 16: project report on nandini milk

Dairy has played a prominent role in strengthening the rural economy; it has

played prominent role in strengthening to bring out socio-economic

transformation by helping the landless and marginal farmers.

OBJECTIVES AND GOALS

To increase the present sales of milk from 55,000 liters to 75,000 liters and increase the

milk dealers from 415 to530.

To increase the sale of milk by conducting door to door survey

Information programs, consumers education programs

Consumers awareness programs, consumers dairy visit

Program, hotel owner meeting, school children program etc

To use different media for the purpose of marketing their

Product

Regarding supply of toned, double toned and shubam to all the cities according to

consumer needs.

SKNG Govt first Grade Collage Gangavathi 16

Page 17: project report on nandini milk

To conduct awareness program for farmers, to enhance the production of milk.

To increase the working members from 10,900 to 18,620

To increase the member of the union to 49,000

To increase the collection of milk from the existing each 131 liters to 160 liters per DCS

To increase the supply of cattle feed to the maximum extent at the reasonable rate to the

members of dairy co-operative society

Milk union target is to sell 85,000 liters in next coming 3 years

ACHIEVEMENTS:

They are able to procure milk from 13 taluks as which are covering those 3 districts and

also selling the milk in all these taluks and towns

Under the program of ‘National Dairy Development Board, to reduce the environment

pollution and to newly smokeless stoves to selected societies

Union is conducting training programs to employees, union members, society members

etc. for implementation of modern technology periodically

With the help of state and central government union are able to provide loans to the

SC/ST members of co-operative societies for their development.

VISION & MISSION

VISION OF RBKMUL:

SKNG Govt first Grade Collage Gangavathi 17

Page 18: project report on nandini milk

RBKMUL Provides Technical support to its Co-operative societies and procuring good

quality of milk from DCS provide better price for milk producers (farmers) and provide good

quality of milk & its products to satisfy its customers in order to maintain & improve the

economical status of the organization.

MISSION OF RBKUL:

“The goodness for generations”. RBKMUL wanted to grow its business for generations

providing good quality of milk to consumers and better services.

VALUES OF RBKMUL:

Discipline

Responsibility

Hard work

Honesty

Quality

Team work and

Openness

INFRASTRUCTURE DEVELOPMENT

Bulk milk coolers (BMC):

At DCS level to chill the milk, BMC’s are to be installed.

BMC is a stainless steel tank attached to the chilling unit supported by Generator. The Raw milk

received at DCS level is chilled to 4 c in BMC.

SKNG Govt first Grade Collage Gangavathi 18

Page 19: project report on nandini milk

Automatic Milk Collection Unit (AMCU):

AMCU includes Electronic Weighing scale, Electronic Milk-o-Tester and a computer

system with printer. Milk can be weighed, tested for quality, quantity, and accurate value without

touching by hand. The producer can be provided the details in printed form immediately with the

help of computer system. This activity will avoid the manual mearsument and handling of each

liter of milk at the time of collection at DCS. Thus the bacererial contamination is decreased and

best quality of milk is sustained for long time.

Electronic Weighing Scale (EWS):

Electronic weighing Scale is measuring/weighing instruments in which the milk will be

measured/weighed in liters as in KG’s Milk producer directly pour the milk in it. A digital

display will show the number of liters poured by the producer.

SUPPLY OF STAINLESS STEEL EQUIPMENTS TO DCS:

Milk union proposes to supply S.S Steel Milk cans and Equipments to the DCS under

CMP.SUPPLY OF S.S Containers to milk Producers. Milk Union proposes to supply stainless

vessels to all the (BPL families and others) milk producers.

Animal Health Coverage:

Under animal health programme more emphasis will be given for mastitis control. SAAF

Kit will to all the (BPL families & others) milk producers.

Construction of cattle feed Godowns:

All the producer member need balanced cattle feed for their milch animals to increase

and sustain optimum milk production for economical dairying. Balanced cattle feed has to be

made available to all the members whenever it is required even in small quantities. Each DCS

villages cannot afford to have Go down facilities, as it require huge investment. Hence Milk

SKNG Govt first Grade Collage Gangavathi 19

Page 20: project report on nandini milk

union proposes to construct cattle feed go downs at each CC/BMC premises so that sufficient

quantity of cattle feed can be Stocked and be able to cater the immediate requirements easily.

Training Programme:

All the Beneficiaries are to be trained in Dairy animal Management and Clean Milk Production.

INFRASTRUCTURE FACILITIES :

Raichur, Bellary and Koppal District Co-operative Milk Union are Having One Main Dairy at

Bellary and Three Chilling Centers and Two Bulk Milk coolers. The details are as under:

SL.NO LOCATION TALUK & DISTRICT INSTALLED CAPACITY

(LPD)

1 Main Dairy

Small Dairy

BELLARY, BELLARY

district

Raichur-Raichur district.

40000

20000

2 Ittigi Chilling

center

Hadagali Taluk 10000

3 Gangavathi

Chilling center

Gangavathi-Town-Koppal

district

10000

4 Dadesugur

Chilling center

Sindhanur Taluk-Raichur

district

30000

5 Bulk-Milk Kudligi-Bellary district 5000

SKNG Govt first Grade Collage Gangavathi 20

Page 21: project report on nandini milk

cooler-Kudligi

6 Bulk Milk

Cooler

Kustagi town-Koppal district 5000

2.2 GROWTH AND DEVELOPMENT

The World Bank funded Dairy Development Program in the country started in Karnataka

with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy

co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from

World Bank, Operation Flood II & III. The dairy co-operatives were established under the

ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the

base level, the District Level Milk Unions at the middle level to take care of the procurement,

processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-

ordinate the growth of the sector at the State level. Coordination of activities among the Unions

and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk

in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid

milk among the member Milk Unions is monitored by the Federation. While the marketing of all

the Milk Products is organized by KMF, both within and outside the State, all the Milk and Milk

products are sold under a common brand name NANDINI

2.3 PRESENTS STATUS OF THE ORGANISATION;

The organizations present status is given in the e different headings, viz, milk

procurement, milk sales, administration development, area of operation etc

(I) MILK PROCUREMENT:

SKNG Govt first Grade Collage Gangavathi 21

Page 22: project report on nandini milk

The organization milk procurement increases ever year. The year 2007-08 & 2008-09 are given

in the table 2.1

Table 2.1

Year wise milk procurement

YEAR AVERAGE MILK

PROCUREMENT/DAY in (kgs)

2007-08 42,263

2008-09 50,847

Source: company Annual reports

(ii)AVERAGE GROWTH RATE OF MLIK PROCURMENT

The growth of milk procurement of the organization is given in the table 2.2

Table 2.2

Year wise milk procurement growth rate

YEAR AVG MILK PROCUREMENT

GROWTH RATE IN %

2007-08 20

2008-09 30

Source: company annual reports

(iii) MILK SALES:

SKNG Govt first Grade Collage Gangavathi 22

Page 23: project report on nandini milk

There are mainly 15 distribution routes are being served by RBKMUL and 28

milk procurement routes. There are around 400 agents sell milk covering all 3 districts.

The yearly sale of milk is given in the table 2.3

Table 2.3

Details of milk sales

YEAR AVG SALE OF MILK IN

LITERS/DAY (in liters)

2006-07 40,538

2007-08 42,542

2008-09 55000

Source: company annual reports

In order to meet the needs of the consumers, milk products such as curd, butter, ghee,

skimmed milk powder, paneer, burfi, and milk Peda are sold. Last year several new products

such as nandini Jamoon mix and Mysore pak and nandini good life long shelf life milk, pure

cow’s milk which could stay fresh without refrigeration for over 45days have been released in

retail packs

(iv)ANNUAL TURN OVER OF RBKMUL, BELLARY:

The organization annual turn over increased every year. The following table explains the

turn over of organization

Table 2.4

Annual turn over

Source: company annual reports

SKNG Govt first Grade Collage Gangavathi

YEAR AMOUNT(in crore)

2007-08 28

2008-09 33

23

Page 24: project report on nandini milk

(v)DETAILS OF PROFITABILITY OF RBKMUL BELLARY:

The evidence for showing the growth rate of the organization & profitability. The

following table clearly indicates the profitability of the organization

Table 2.5

Profitability of the organization

YEAR AMOUNT (in lakhs)

2005-06 36.50

2006-07 (62.24)

2007-08 26.73

2008-09 47

Source: company annual report

(vi)MILK COLLECTION:

In 2008-09 the organization collected milk 52,433 kgs from 351 societies.

(vii)DEVELOPMENT OF GREEN FODDER:

In the year 2008-09 SSG Jowar seeds of 2,500 kg have been given to grow green

fooder for animals and 50 metric tones dry grass has been supplied to farmers.

(viii)DEVELOPMENT PROGRAMMES:

In the year 2008-09 under step scheme 20 women members and directors of co-operative

societies were sent to Amul at Gujarath.

(ix)STEP SCHEME:

SKNG Govt first Grade Collage Gangavathi 24

Page 25: project report on nandini milk

Under this scheme Government of India has approved Rs.19, 89,869 amounts with the

Co-operative of KMF. By this scheme 45,000 women members of 20 districts will get training as

dairy professional.

(x)SALE OF MILK AND OTHER PRODUCTS:

During the year 2008-09 daily 52,433 kgs milk are sold in various cities.

Ghee of 183.5 metric tones were sold

Peda of 7,500 kgs were sold

Milton bottle of 42,000 were sold

Excess of milk were send to converted into Skimmed milk powder, Butter, Lassies.

(xi)ADMINISTRATIVE IMPROVEMENTS:

The administration improvements are as follows

Produce pure milk

Excess milk will be send to Dharwad for conversion

Commission to Agent increased to 20 paise to 50 paise per liter.

The capacity of Bellary Dairy increased from 30,000 to 40,000.

The chilling center and its capacity are given in the table 2.6

Table 2.6

Details about chilling center and capacity of milk.

CHILLING CENTER CAPACITY OF MILK

BELLARY 40,000

DHADESAGAR 30,000

ITIGI 10,000

KUDLIGI 5,000

GANGAVATHI (KOPPAL) 10,000

RAICHUR 20,000

SKNG Govt first Grade Collage Gangavathi 25

Page 26: project report on nandini milk

Source: company annual report

AREA OF OPERATION

The organization operates the business in three districts. The district wise details are given in the

table 2.7, 2.8, and 2.9

Table 2.7

Details about Raichur district

RAICHUR

DIST

REGISTERED

SOCIETY

NO.OF

FUNCTIONAL

SOCIETY

MILK

COLLECTION IN

KGS (PER DAY)

RAICHUR 19 03 491

MANVI 42 25 5566

SINDHANOOR 86 42 13225

DEO DURGA 06 00

LINGASAGUR 01 01 1682

TOTAL 154 71 19450

Source: company annual report

Table 2.8

Details of Bellary district

BELLARY

DIST

REGISTERED

SOCIETY

NO.OF

FUNCTIONAL

SOCIETY

MILK

COLLECTION

KGS (PERDAY)

BELLARY 56 22 4069

SIRUGUPPA 62 25 2283

HOSPET 24 06 554

SANDUR 11 01 52

SKNG Govt first Grade Collage Gangavathi 26

Page 27: project report on nandini milk

KUDILGI 48 27 3441

H.B.HALLI 30 28 5864

HADAGALI 40 22 3962

TOTAL 274 131 20225

Source: company annual report

Table 2.9

Details about Koppal district:

KOPPAL DIST REGISTERED

SOCIETY

NO.OF

FUNCTIONAL

SOCIETY

MILK

COLLECTION IN

KGS (PER DAY)

KOPPAL 32 14 1743

GANGAVATHI 61 37 9741

YALBURGA 26 16 1173

KUSTIGI 17 02 101

TOTAL 136 69 12758

Source: company annual report

2.4 FUTURE PLANS OF THE ORGANISATON

PERSPECTIVE PLAN 2012

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

SKNG Govt first Grade Collage Gangavathi 27

Page 28: project report on nandini milk

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. 

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. 20

2.5 ORGANISATIONAL CHART:

chart2.1

SKNG Govt first Grade Collage Gangavathi 28

Page 29: project report on nandini milk

2.6 SWOT ANALYSIS OF RBKMUL:

SKNG Govt first Grade Collage Gangavathi

Board

Managing director

Procurement & inputDepartment Dairy department

PurchaseDepartment

MarketingDepartment

Manger

Dy manger

Asst manger

ExtensionOfficer

Worker

Dy manger

TechnicianOfficer

DairySupervisor

Junior technician

Workers

AdministrationDepartment

FinanceDepartment

Superintendent

Asst supt

Worker

Superintendent

Asst supt

Worker

Dy manger

Asst

Worker

Asst manger

Extension Officer

Asst

Worker

29

Page 30: project report on nandini milk

The present organization having strengths, weakness, opportunities

STRENGTHS : -

Strong Brand Value and reliability

Highest market share among the organized brands in the packed milk

market segment.

Strong Distribution of network and better reach.

Good Infrastructure facility compared to competitors.

Consistency in quality and Timely supply of Milk.

WEAKNESS: -

Majority of Nandini dealers are not loyal.

Poor market visibility and availability.

Sales based on Agents indent.

Mismatch between consumers expectation in terms of Quality.

No established system for consumer Grievance Redressal.

OPPORTUNITIES: -

A large market with a good potential for liquid milk.

SKNG Govt first Grade Collage Gangavathi 30

Page 31: project report on nandini milk

Growing industrial and institutional demand for nandini milk.

Good scope in opening milk Parlours at all Taluk and prime location in

the district head quarters.

Milk delivery can be improved by introducing more TCD system at

Bellary, Raichur and Hospet cities to meet the market demand.

THREATS: -

High margin paid to retailers by competitors.

Flexibility in trade policy by the competitors.

Strong door delivery system of loose milk vendors.

SKNG Govt first Grade Collage Gangavathi 31

Page 32: project report on nandini milk

CHAPTER –IIIDETAILED STUDY OF THE

DEPARTMENTS

CHAPTER: III

SKNG Govt first Grade Collage Gangavathi 32

Page 33: project report on nandini milk

DETAILED STUDY OF THE DEPARTMENTS

Detailed study of the departments

The organization is having six important departments. This chapter discuss about the

detailed analysis of the various department.

The list of departments is as follows:

1) Purchase department

2) Procurement & Input department

3) Production department

4) Administration department

5) Finance department

6) Marketing department

3.1 PURCHASE DEPARTMENT

SKNG Govt first Grade Collage Gangavathi 33

Page 34: project report on nandini milk

The purchasing activities include selecting good geographical area, which is well suited

for cattle, and were the cattle are more in number.

Purchasing is a managerial activity that goes beyond the simple act of buying and includes

the planning and policy activities covering. Wide range of related and complementary activities.

The purchasing department occupies a vital and position in the organization.

Objectives of Purchase departments:

The following of them are the objectives of the purchase department

To procure right material.

To procure material in right quantity.

To procure from right and reliable source of vendor.

To procure material economically i.e. at right or reasonable price.

To receive and deliver material at place and right guide.

SKNG Govt first Grade Collage Gangavathi 34

Page 35: project report on nandini milk

3.2 PROCURMENT &INPUT DEPARMENT

FUNCTION:

Main motive is to organizes milk producers in the villages

Input & services

Fodder

Extension programs

Benefits

Round the year, market to milk produced

SERVICES:

MPCS bears all charges of any diseases to the cattle includes medicine &

Transportation charge

The fee for doctor 75/per- animal visit

Once in three months they conduct annual treatment health camps in societies

Free of cost

Fro example: - pregency test

VACINATION WORK

They vaccines are sold to farmers at subsidiary rate

Example: - foot & mouth diseases

SKNG Govt first Grade Collage Gangavathi 35

Page 36: project report on nandini milk

SOCAIL SERVICES

Milk producers meeting

Education programs

Cattle feed (balanced nandini cattle feed to society)

They encourage growth of green fodder

I. Supplying seeds at subsidiary rates

II. (b) Supplying root stems of pareprine green fodder (co3)

(Grows once in a month up to 4 years)

TRANING PROGRAMES:-

President tanning

Managing committee member training

Training to the societies secretary

Training to the milk tester (bitrometer)

Dairy animal management training to the milk producers

On plant training in AMUL (gurjat)

SKNG Govt first Grade Collage Gangavathi 36

Page 37: project report on nandini milk

STAFF STRUCTURE OF PROCUREMENT & INPUT DEPARTMENT

Chart 3.1

SKNG Govt first Grade Collage Gangavathi

Manger P&I

Deputy mangerProcurement

Deputy manger Animal husbandry

Deputy mangerFeed, fodder

Asst mangerProcurement

Asst mangerAnimal husbandry

Asst mangerFeed fodder

ExtensionOfficers

37

Page 38: project report on nandini milk

SUPPORT TO TRANNING AND EMPLOYEMENT PROGRAMME (STEP)

Karnataka Milk Federation is implementing a special program for overall development of

women folk in rural areas. This program is named as "Support to Training and Employment

Program for women" (STEP) launched during 1997 with the financial assistance of Ministry of

Human Resource Development, Department of Women and Child Development Government of

India.

OBJECTIVES OF THE PROGRAMME

The program of STEP advocates the objectives of extending training for up gradation

of skills and sustainable employment for women through a variety of action-oriented projects,

which employ women in large number. The scheme covers 8 traditional sectors of employment.

Dairying and Animal Husbandry is one such sector, which gives sustainable employment and

income.

The STEP program is implemented with 90% financial assistance from Government of

India's Human Resource Development Division, Women and Child Development Department.

And 10% contribution should be made by the implementing agencies. The program of STEP

aims to make a significant impact on women in traditional sectors (dairying & animal husbandry)

by upgrading skills and providing employment to women on a project basis by mobilizing

women in viable groups, improving skills, arranging for productive assets (milch animals),

creating forward and backward linkages, improving/ arranging support services, providing access

to credit, awareness generation, gender sensitization, nutrition education, sensitization of project

functionaries.

Thus STEP advocates an integrated package of inputs aiming at the integrated

development of poor women in traditional sector, to enable them economically more viable,

independent and raise their socio-economic status .The main developmental objective is the

SKNG Govt first Grade Collage Gangavathi 38

Page 39: project report on nandini milk

organization of the Women DCS in rural areas by mobilizing women viable groups and

generating self-employment opportunities and to take up dairying as their occupation.

TARGET GROUP

The target group to be covered under STEP program include marginalized asset less rural

women and urban poor. This includes wage labourer, unpaid daily worker, female headed house-

holds, migrant tribal and other dispossessed group

IMPLEEMENTING AGENCY

The Ministry of Human Resource Development, Department of Women and Child

Development, Government of India has sanctioned 3 STEP Projects each having 3 year duration

for implementation in Karnataka. The financial outlay is as follows:

 PROJECT COVERAGE

The project area covers all the 27 districts of Karnataka State coming under the jurisdiction of 13

District Milk Unions under the project area of KMF

SKNG Govt first Grade Collage Gangavathi

NAME OF THE

PROJECT

DURATION OF

THE PROJECT

NO .OF

T.G.MEM

AMOUNT

SANCITIONED

STEP Proj-I 1997-2000

Est.400 WDCS

Zone-I 10,000 494.93 lakhs

STEP Proj-II 2001-2004

Est.200 WDCS

10,000 796.60 lakhs

STEP Proj-III 2002-2005

 Est. 200 WDCS

10,000  619.70 lakhs

39

Page 40: project report on nandini milk

.TRANNING AND EDUCATION PROGRAMME

a Women Secretary Training

b  Milk Testers Training

c  Women Management Committee Members Training

d  A.I Workers Training

e  First Aid Worker Training

f  Animal Husbandry and Dairy management Training Programme

g  Chair Persons Orientation

AWARENEES PROGRAME

 a  Health & Nutrition

 b  Gender Sensitization

 c  Legal Literacy

The ultimate objective of the project is to develop women group to be self-reliant on self-

sustaining basis with the minimal Government support and intervention after the project period is

over

SKNG Govt first Grade Collage Gangavathi 40

Page 41: project report on nandini milk

3.3 PRODUCTION DEPARTMENT

The unit of Raichur, Bellary and Koppal consists of all high level technological

processing equipments.

These mechanized high technology machines help in retaining the quality of the milk and also

help to increase the production capacity and there by saving time and energy.

The production rate of the year 2008-2009 is 42,542 liters, which has been increasing by leaps

over the years. This is all too good technological equipments.

Table 3.1

Year wise procurement and sales

YEAR PROCUREMENT SALES

1999-2000 37665 32726

2000-2001 38103 32227

2001-2002 34952 34429

2002-2003 34932 37305

2003-2004 37971 37435

2004-2005 37427 40348

2005-2006 42263 40538

2006-2007 50847 42542

2007-2008 52244 54274

SKNG Govt first Grade Collage Gangavathi 41

Page 42: project report on nandini milk

PRODUCTION PROCEDURE (chart: 3.2)

Received Milk (raw)

Weight tank (5OO kgs)

Dump tank (100 Kgs)

Chiller (5000 Lt/Hr)

Silo (15000 Lts)

HTST Pastuerisors

(High temperature in short time)

Cream separator

Standardization

Silo (pasteurized) (15000)

Overhead tank (5000)

Packing machine

Cold storage (7 DC TO 4 DC)

(Cap-20000lts.)

SKNG Govt first Grade Collage Gangavathi 42

Page 43: project report on nandini milk

Dispatch

Market

Table 3.2

PRODUCT MIX

MILK CURD GHEE BUTTER

MILK

LASSI PEDA

1 lt 500 ml 500 ml 200 ml 200 ml 250 ml

500 ml 200 ml 200 ml - - -

200ml - - - - -

Quality is the main priority of this union. So some of the quality checks equipments used

all.

Centrifuged machine for fat testing.

Milk-O-tester for fat CHECKING.

Corrected lactometer for SNF testing.

CHEMECAL TEST

Spirit lamp used in (elot on boiling test) which is conducted to study adulterants.

Lila sugar, stera, neutralizer.

BACTERIOLOGY TEST

Spc (std plate count method)

MBRT (METHELYN Blue reduction test)

SKNG Govt first Grade Collage Gangavathi 43

Page 44: project report on nandini milk

Coli form

PACKING TECHNOLOGY

Local milkman initially sold milk door-to-door. When the dairy co-operatives initially

started with foil. Over the years, several developments in packaging media have taken place in

the early 80’s, plastic pouches replaced the bottles. Plastic pouches made transportation and

storage very convenient, besides reducing costs. Milk packed in plastic pouches/bottles have a

shelf life of just 1-2 days, that too only if refrigerated. In 1996, Tetra packs were introduced in

India. Tetra packs are aseptic laminate packs made of aluminum, paper, board and plastic. Milk

stored in tetra packs and treated under ultra High temperature (UTH) TECHNIQUE CAN BE

STORED FOR MONTHS WITHOUT REFRIGERATIION

SKNG Govt first Grade Collage Gangavathi 44

Page 45: project report on nandini milk

HIERARCHY OF PRODUCTION DEPARTMENT

CHART 3.3

SKNG Govt first Grade Collage Gangavathi 45

Page 46: project report on nandini milk

3.4 ADMINISTRATION DEPARTMENT

The organization does not have human resource department, most of the human resource

works are taken care by administration department.

As the unit is registered under society’s act 1959, it follows certain rules & regulation.

SKNG Govt first Grade Collage Gangavathi

MANGERDAIRY

DEPUTY MANGER DAIRY

Asst mangerDairy technology Asst manger

Engineering

Technical officerDairy technology

Technical mangerEngineering

Dairy supervisors Dairy supervisors

Senior technician

Technician

Chemist

46

Page 47: project report on nandini milk

Recruitment rules

The recruitment policy of an organization is two methods. The first one by direct recruitment

from the out side, the second method is by promoting the existing staff members.

Direct Recruitment

Under this method selection can be made either by competitive examination or oral interview.

The recruitment & promotion shall be ground by the grade & recruitment rules duly approved by

the registration of co-operative societies.

APPOINTMENT PROCEDURE

DIRECT RECRUITMENT: If it is by competitive examination after giving adequate publicity

as the appointing authority may determine in the order of merit subject to reservation from the

list of candidates prepared by the selection committee.

If its by selection after giving such adequate publicity in as least one in kannada one in

English leading news papers to the recruitment as the appointing authority may determine

ALLOWANCE:

The organization provides various allowances to their employees. The allowances are shift

allowances. The details are given in table 3.3, 3.4

SHIFT ALLOWANCES

SKNG Govt first Grade Collage Gangavathi 47

Page 48: project report on nandini milk

Table3.3

Details about shift allowances

SHIFT TIME RUPEES

1 st 6-OO AM TO 2-OO PM 2.25

2nd 2-00 PM TO 10-00 PM 2.00

3 rd 10.00 PM TO 6-00 AM 3.00

Source: company annual reports

Table 3.4

Details about other allowance

Source: company annual reports

Employee benefits:

Group sharing link insurance (GSIL) all the employees on cover under GSIL scheme of

India .in case of death the employees are paid insurance amount in accordance with the category

of the particular employee.

SKNG Govt first Grade Collage Gangavathi

Heat allowance 20/month

Cold storage allowance 30/month

Xerox allowance 25/month

Cash allowance 50/month

stenographer (special

allowance)

75/month

Typist (special allowance) 60/month

Driver allowance 90/month

48

Page 49: project report on nandini milk

Milk subsidiary act employee is provided ½ liter milk at 50% as subsidiary rate

for 10 months and 1 liter milk as 50% subsidiary rate remaining 2 months November &

December.

MEDICAL FACILITES: - ESI coverage for employees –under ESI providing in patient

amount of Rs. 5,000/-per annum.

Conveyance allowance:

For the employees who are maintaining car they are providing Rs 550/per month & for motor

cycle above 100cc Rs .350, vehicle below 50 cc Rs. 150 /moth & for other 100 /month.

Uniform:

All the male employees are provide 1 pair uniform once in a year & all female employees are

provided 2 sarees & 2 blouses once in a 2 years.

All the employee are provided 1 kg of ghee for notified festival at free of cost

(ganesh chaturthi & ugadhi)

Gratuity:

As per the gratuity act gratuity is paid as per the subsidiary rule. The major financial

strength for milk dairy is national development dairy Board (NDDB)

Profits will be distributed as.

25% reserves fund

5% contribution to cooperative fund

2%S.C.E.F

10% dividend

70% bonus

10% building fund

10% charity fund

2% dividend and equalization fund

3% research & development

5% co-operative propaganda

SKNG Govt first Grade Collage Gangavathi 49

Page 50: project report on nandini milk

SHARE CAPITAL: RS 100/-Per share only societies are eligible

RECREATION FACILITIES

A recreation facility to reduce tension of work and helps to relax for some times. Two time

tea daily for permanent employees

Lunch:

Permanent employee Rs 1.50/-per ay

Contract labor Rs 3.00/-per day

Others Rs 7.00/-per day

HIERARCHY OF ADMINISTRTION DEPARTMENT

The hierarchy of administration department is shown in the chart 3.4

SKNG Govt first Grade Collage Gangavathi 50

Page 51: project report on nandini milk

Chart 3.4

3.5 FINANCE DEPARTMENT

Financial function is an area financial decision-making harmonizing individual motive

and co-operative goods. It covers not only financial planning, but also optimum use of funds as

well as the financial control.

SKNG Govt first Grade Collage Gangavathi

Superintend

Asst superintendent

Tapal (personal file)

Stenographer

Typist

51

Page 52: project report on nandini milk

The basic functions performed are the day-to-day fund management, treasure management,

beside these the book of accounts

.The decision regarding acquiring of plant and machinery or any other capital expenditure is

made on the basis of payback period/internal rate of return/net present value method. Thus being

a co-operative organization the ultimate decision lies in the hands of the board of directors.

The credit period allowed to buyers upon the mutual understanding or as per contract and credit

period allowed by the supplies is 7-8 days (payment is made on weekly basis to farmers).

The main objectivities of the Finance department are to control the finances and minimization of

expenditure, providing services to the member milk unions and its societies & the process of

making profit .though the objective of the federation is not to absolute profits, the profits are

incidental to the business.

FUNCTIONS OF FINANCE DEPARTMENT:

The finance department performs various functions. The functions are as follows.

Control of finance.

Monitoring of funds & investment of surplus funds generated on the account of

operational profits.

Coordinating with member Milk unions for providing funds & payment of supply bills in

time to avoid cash crunch at the Milk unions.

Preparation of consolidated financial statements received from member Milk unions &

the units on the monthly basis & submission of the same to the Board for its approval.

Providing information to the Management at various levels as & when desired for

different purposes like decision making, increase & decrease in selling price of Milk &

Milk products etc…

The federation does not have any financial management as of now & they have not

borrowed from any financial institutes/banks for the purpose of working capital expect

for infrastructural developments from National Dairy Development Board on a long term

basis ranging from 10 to 15 years at a nominal rate of 6-8%.

INTEGRATED BUISNESS PLAN:

SKNG Govt first Grade Collage Gangavathi 52

Page 53: project report on nandini milk

The finance department prepares the integrated business plan, for the organization.

Integrated business plan is prepared after taking into consideration the various facts like previous

experience, growth of the industry competitors’ behavior, market conditions of demand &

supply, export/import policy of the govt, govt legislations on various issues, statutory levies, and

geographical conditions.

The market is volatile & also due to heavy competition, there is lot of fluctuations in the market

conditions. Hence, preparation of integrated business plan meticulously is a very important task

for the federation.

Consolidation of the Integrated Business Plan & submission to the Board for its approval.

Monitoring of the Integrated Business Plan on a monthly basis/quarterly basis to ensure that the

units & the division heads adhere to the time schedule given in the Integrated Business Plan for

undertaking various tasks including infrastructural development etc…

SOURCES OF INCOME: The organizations sources of income are as follows

Direct income on account of sale of milk & milk products at Mother Dairy.

Certain amount of profit on sale of cattle feed by the Federation to its members Milk

Unions.

The federation is working as an agent for the entire member Milk Unions for disposal of

its milk products whereby the federation earns 4% as service charges.

Sales tax and Income tax assessments:

The federation & its branches have got one single consolidated registration for the

purpose of sales tax & all the Units assessments are done at Bangalore only after

consolidation.

SKNG Govt first Grade Collage Gangavathi 53

Page 54: project report on nandini milk

Since the federation is making little profits, they are bound to pay certain amount of taxes &

income tax assessments are being done as per the provisions of Income Tax Rules.

HIERARCHY OF FINANCE DEPARTMENT :

The finance department is having six hierarchy. The hierarchy details are given in the chartn3.5

Chart 3.5

SKNG Govt first Grade Collage Gangavathi 54

Page 55: project report on nandini milk

ANALYSIS OF BALANCE SHEET

SKNG Govt first Grade Collage Gangavathi

MANAGING DIRECTOR

SUPERINTENDENT

ASST SUPERINTENDENT

SENIOR ASSISSTANT

JUNIOR ASSISSTANT

CASHIER

55

Page 56: project report on nandini milk

The organization balance sheet showed various information about the organization. As

per the balance sheet information, (annexure I) the total assets of the organization is Rs 14, 72,

06,223From this building value rs 23, 95,494 and computer and printers are Rs 32,970. The

organization capital is Rs 7, 78, 24,248.

SKNG Govt first Grade Collage Gangavathi 56

Page 57: project report on nandini milk

3.6 Marketing department

Marketing is indeed an ancient art. It has been practiced from the age old times. But their

need for selling even basic commodities is of recent origin. In a short period of time, marketing

has grown to such an extent that it is being viewed as the most important of all the management

function in a business

MARKETING MIX OF NANDINI IS AS FOLLOWS

PRODUCT:

They are flooring milk in different quantities like half liter & one liter

The quantity of the milk is also high. The brand name of the firm is very popular. The system of

milk packing is very hygienic and convenient for the transport purpose.

PRICE:

The pricing method followed by the firm is very sound and prices of the product are very

competitive, details are given in the table 3.3

Table 3.5

Details about price

PRODUTS PRICE TO

DELAERS (RS)

COMMISSION MRP(RS)

Shubam 17.00 1.0 18.00

Toned milk 14.50 0.50 15.00

Double toned milk 13.00 1.00 14.00

SKNG Govt first Grade Collage Gangavathi 57

Page 58: project report on nandini milk

PROMOTION:

They are giving advertisements in news papers. They also give ads in local channels like city

cable. For new launches they under take publicity through pamphlets

PLACES:

Distribution channel is as follows

DAIRY----------------------DELAERS--------------------CONSUMERS.

They maintain their own delivery vehicle some times,

They follow O level marketing

Product Lines:

There are two types of milk

Toned milk: It contains 3% Fat, 8.5% SNF (solid not fat) 65% half liter packets, 35%

one liter packets.

Standardized Milk. It contains 4.5% fat, 8.5% SNF, and 100% 500 ml packets.

Ghee : 200 ml and 500 ml packets

Curd : 100% 500ml packets

Peda : 250 Gm packets

Jamoon Mix: 100 Gm packets

Badam Powder: 100 Gm packets

SKNG Govt first Grade Collage Gangavathi 58

Page 59: project report on nandini milk

Package Design:

Milk is being packed in sachets of different colors.

Blue colour is used for toned milk. They are packing 65% half liter packets and 35% one

liter packets.

Red color sachets are used for standardized milk. They are using 100% 500ml packets.

Ghee is being packed in sachets. The color of sachets is yellow. They are packing 200ml

and 500ml packets.

Tin for bulk selling flavored milk is in 250ml and bottles.

Peda is being packed in 250 grams blue colored cartons.

Brand policy :

Uniform brand policy all over Karnataka i.e. Nandini.

Distributors – Policy, terms/conditions:

They are not selling their milk and milk products through distributions. They are selling

only through agents.

Price Policy methods:

They are following cost of production method. According to raw material price, agents,

commission, electricity bill, expenditure, variable and fixed overheads transportation, the price

will be fixed.

Price Strategy:

According to quality of the product and after considering all fixed and variable expenses,

the final price is arrived.

SKNG Govt first Grade Collage Gangavathi 59

Page 60: project report on nandini milk

Details on Sales Promotion:

The organization follows various methods of sales promotion techniques .the techniques are as

follows

School children programmes.

Mahila Mandal programmes.

Qualification testing programmes.

Telephone contacts with customers.

Customer’s Dairy visit.

Door to Door consumer awareness programmes

Hoarding, pole advertisements, wall paintings, supply of sign boards to agents, glow

signboard, flute boards and supplying of Nandini milk carry bags to agents.

New Product Development – Approach Procedure :

They are planning to launch DAIRY WHITENER (powder) for making coffee, sweets,

curds etc…

Considering the market survey, market situation, price availability of competitor’s milk

availability and considering the distribution strategy they are going to launch a new product. The

introduction of new product will be published in the newspapers, TVs, picture theaters to

enlighten customers.

Training to Sales Staff:

For training purpose Field Staff National Dairy Development Board at KMF a Central

Office – Bangalore, Tamilnadu, Gujurat & other places to impart necessary training to their sales

staff.

SKNG Govt first Grade Collage Gangavathi 60

Page 61: project report on nandini milk

Remuneration to Sales Staff:

Against fixed salary as per Government rules the sales staffs are working.

Billing:

Regarding milk sales the salesmen collect the amount from agents as per the trip sheet

and same is remitted to main Dairy cash reception. The trip sheet is prepared on the bases of

Delivery challan.

Milk procurement:

Against suppliers of milk from villagers based on the fat and SNF the rate per kg of milk

will be arrived at and detail billing will be done on this basis and sent to the villages along with

the payment.

Methods of selling:

Usually they are selling through agents. In some cases they are taking money in advanced

and giving door delivery.

Competitors:

Competitors are AROGYA, VIJAYA, KAVERI, and DURGA

RESPONSIBILITIES OF MARKETING HEAD

PLANNING:

Preparation of annual and long-term marketing plans.

Preparation of time bound action plan in consultation with the marketing team

DISTRIBUTION:

Markets, towns covered

Appointment of distributors/retailers

Establishment of new parlors

SKNG Govt first Grade Collage Gangavathi 61

Page 62: project report on nandini milk

Institutional customers

Physical stocks

Incentive and margin of retailers

Sales Promotion:

Formulation of budgets

Strategies to be employed

Allocation of budget

OPERATIONS:

Implementation of marketing plan

Achievements of sales targets of the union

Sales departments

REPORTING:

Reporting to the managing director.

Report on monthly/quarterly basis to KMF in consultation with MD

OTHERTASKS:

Co ordination with NDDB, KMF & other milk unions.

Co ordination with other functional departments.

Plan of action, support needed to achieve target.

SKNG Govt first Grade Collage Gangavathi 62

Page 63: project report on nandini milk

STRATEGIES

Improve visibility and availability of milk Bellary, Hospet, Koppal and Raichur cities by

pole adds hoardings, wall paintings and setting up Parlours.

Assigning sales target for field officers.

Facilitate door delivery of milk through milk retailers and unemployed boys.

Penetrate the new markets by rescheduling the existing milk distribution routes.

Concentrate more on institutional milk supplies like hotels, marriage and function hall.

Proposed to reschedule milk distribution routes to cover the uncovered area in both city as well

as Upcountry. Proposed to conduct Door-to-Door survey with the help of management school

students in Bellary and Lingasagur cities.

Cold chain facility will be strengthened to supply good quality milk to consumers.

Mahila mandal meeting, milk testing programme will be conducted. The programme will be

organized in presence of local area leader, Doctor, while conducting the programme, all the

available milk sachets in the city will be tested for quality and consumer will get convenience

about the quality and quantity of milk supplied by private brands.

SKNG Govt first Grade Collage Gangavathi 63

Page 64: project report on nandini milk

HIERARCHY OF MARKETING DEPARMENT

The hierarchy details of the marketing department is given in chart 3.6

Chart 3.6

SKNG Govt first Grade Collage Gangavathi 64

Managing director

Deputy manger(Bellary)

Asst manager I/c (Raichur)

Marketing officerI/c (hospet)

Marketing officer(Bellary)

Marketing assistant Marketing assistant (2) Marketing assistant

Page 65: project report on nandini milk

CHAPTER –IV

STUDY OF SPECIFIC

MANAGEMENT PROBLEMS

SKNG Govt first Grade Collage Gangavathi 65

Page 66: project report on nandini milk

CHAPTER: IV

STUDY OF SPECIFIC MANAGEMENT PROBLMES

THE STUDY OF SPECFIC MANAGERIAL PROBLEMS:

1) No discount scheme

2) No festival offers

3) Lack of availability

4) Lack of advertisement

5) Credit schemes are not available

6) There is no plan for expansion

SKNG Govt first Grade Collage Gangavathi 66

Page 67: project report on nandini milk

CHAPTER-V

CONCLUSION AND

RECOMMENDATIONS

SKNG Govt first Grade Collage Gangavathi 67

Page 68: project report on nandini milk

CHAPTER-V

CONCLUSION AND RECOMMENDATIONS

5.1Suggestions:

The Milk union should give discounts to their customers. Other wise they should allow

the customer price offer for bulk purchases.

The union should give scratch cards, festivel offer, and special coupon schemes to their

customers for increasing the sales.

The union should make necessary steps to availability of the milk in all places. It is very

help full to the customers in time saving.

The union should take immediate attention to the advertisement of their products.

The union should give some special credit schemes to their regular customers.

The union should take steps to the expansion of the union.

5.2CONCULSION

While doing the corporate exposure and learning in RBKMUL, There have been certain

facts which are noticed. RBKMUL was setup on 1985 . For then on the federation is improving

too much. Milk production Unions, Procurement of milk & Sales of milk is increasing at good

rate. Besides, sales of curds, butter, ghee and other milk products are also increasing every year.

For increasing demand, federation has opened many new production units. Nandini milk & its

products has got almost monopoly market. Most of the consumers are satisfied with the quality,

price & so on. But the company does not concentrating too much about the advertisement. As a

result many Nandini milk consumers are not aware of Nandini milk products. So the company is

getting optimum profit rather than getting maximum profit.

SKNG Govt first Grade Collage Gangavathi 68

Page 69: project report on nandini milk

ANNEXURE: I

Details about the higher officials

CHAIRMAN SRI H. HANUMANTAPPA

DIRECTOR SRI B. SURYANARAYANA

MURTHY

DIRECTOR SRI K.THIMMA REDDY

DIRECTOR SRI H.M.GURUSIDDA SWAMY

DIRECTOR SRI ESHAPPA.Y.MADINOOR

DIRECTOR SRI V.MUTYALA RAO

DIRECTOR SRI M.V.PATIL

DIRECTOR SMT.J.B.SUMANGALAMMA

MANAGING DIRECTOR RBKMUL DR. B.M. PREMNATH

SKNG Govt first Grade Collage Gangavathi 69

Page 70: project report on nandini milk

ANNEXURE: II

Details about Department Heads

PROCURMENT AND INPUT

DEPARTMENT (MANAGER)

Sri. R. HOSA GOWDER

DAIRY & CHILLING CENTER SRI .R.SURESH KUMAR

FINANCE DEPARTMENT

(ACCOUNTS SUPERINTENDENT)

VINCENT.R.NOEL

PURCHASE DEPARTMENT SRI. K.CHIKKANAIAH

ADMINISTRATION DEPARTMENT SRI T.J.RADHA KRISHNA

MARKETING DEPARTMENT DR.K.S.BASAVARAJ

Total number of employees in RBKMUL-125 and

Contract labourers-70

Total number of managers-2

Deputy managers-5

Assistantmanagers-3.

SKNG Govt first Grade Collage Gangavathi 70

Page 71: project report on nandini milk

ANNEXURE: III

IMPORTANT PHOTOGRAPHS OF THE ORGANISATION

RELEASING THE NEW PRODUCT

The Chief Minister Shree: H.D. Kumaraswamy released the Nandini Homogenised Milk

containing 3.5% FAT in Bangalore On Thursday the 19th of April 2007. The Minister for Public

Works & Energy Shree: H.D. Revanna, Minister for Higher Education Shree: D.H.

Shankaramurthy and Minister for Animal Husbandry Shree: Revunaik Belamagi were present on

the occasion

SKNG Govt first Grade Collage Gangavathi 71

Page 72: project report on nandini milk

LAUNCHING OF NEW PRODUCTS 

SKNG Govt first Grade Collage Gangavathi 72

Page 73: project report on nandini milk

Launching New Product

The Karnataka Milk Federation has launched nandini good life milk in tetra brick in 1 Litre pack

which was released by Chairman, KMF on 12th April 2006.

SKNG Govt first Grade Collage Gangavathi 73

Page 74: project report on nandini milk

BIBLIOGRAPHY

BOOKS

1. Everett E Adam, Ronald J Ebert, Production and Operations Management 5th Edition, Prentice Hall of India Pvt Ltd, 2005.

2. Philip Kotler, Keller Kevin Lane, Marketing Management, 12th Edition Prentice Hall of India Pvt Ltd, 2005.

3. Prasanna Chandra, Financial Management, 5th Edition, Tata McGraw Hill, Publishing Company Limited, 2001.

4. V S P Rao, Human Resources Management, 2nd Edition, Excel Books, 2005.

WEBSITES:

www.kmfnandini.coopwww.Google.com

OTHERS;

RBKMUL Brochure Data provided by all the Departments of RBKMUL

SKNG Govt first Grade Collage Gangavathi 74


Recommended