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Page 1: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA- Programme. 1

PROJECT REPORT

AT

KARNATAKA MILK FEDARATION, DHARWAD.

A Project Report submitted in partial fulfillment of the

Requirements for the award of the degree of

MASTER OF BUSINESS

ADMINISTRATION (Industry Integrated)

TO

MADURAI KAMRAJ UINIVERSITY, MADURAI

BY

SAMARTHA.D.K Reg. No. A8755209

Under the guidance of

FACULTY GUIDE

Dr. Rajendra Prasad INSTITUTE OF BUSINESS MANAGEMENT & RESEARCH

HUBLI JUNE 2009

EXTERNAL GUIDE

Mr. K. B. Patil

(HOD of Finance Department)

Page 2: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 2

PART A

INDUSTRIAL PROFILE

COMPANY PROFILE

Page 3: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 3

INDUSTRIAL PROFILE

DAIRY INDUSTRY IN INDIA

Dairy enterprise is an important occupation of farmer. In India

nearly 70% of the people depend on agriculture. It is the 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.

DEVELOMENT 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 Luck now in 1937 called the

Luck now milk producers Co-operative union Ltd.

In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to

bring up the economic stability of villagers.

The dairy and Animal Husbandry received serious attention after

the independence. There were lot 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” through out the country, Initially 10 states were

selected were for this purpose excluding Karnataka.

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Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 4

In Karnataka in 1974 an integrated project was launched to

restructure and reorganize the dairy industry on Co-operative principle of

AMUL and to lay foundation for new direction in dairy industry.

NATIONAL DARIY DEVELOMENT BOARD:

History

The NDDB was founded to replace exploitation with

empowerment, tradition with Modernity, Stagnation with growth,

transforming dairy into and instrument for the development of Indian‟s

rural people.

The NDDB was established in 1965; the board is registered under

the Societies Registration Act and the public Trust Act, fulfilling the

desire of the Prime Minister of India – the late Lal Bahaddur Shastri to

extend the success of the Kaira Co-operative Milk producers union

(AMUL) TO OTHER PARTS OF India. Dr Vergese Kurien was the

founder chairman. The success combined the wisdom & energy of

farmers with professional management to successful capture liquid milk

and milk product markets while supporting farmer‟s investment with

inputs and services.

The Growth

NDDB began its operations with the mission of making dairying a

vehicle to a better future for millions of gross roots milk producers. The

mission archived helped to launce „‟Operation Flood‟‟, a programme

extending over 26 years and with the help of World Bank Loan India

become the world‟s largest milk producing country. As per March 2001

India‟s 96000 Dairy Co-operative are integrated thorough a three Tier Cc-

operative structure. The Anand pattern, which is owned by more than 10

Page 5: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 5

million formers, procures an average of 1605 million liters of milk

everyday. The milk is processed and marketed by 170 milk producers co-

operative unions which, in turn own 15 state co-operative milk marketing

federation. Since its establishment the dairy development board has

planned and spearheaded India‟s Dairy programmer by placing dairy

development in the hands of milk producers and the professionals they

employ to manage their co-operatives. In addition, NDDB also promotes

other commodity based co-operative, allied industries and veterinary

biologically on an intensive and nation wide basis.

Objectives of NDDB:

To sponsor, promote, manage, acquire, construct or control any

plant or work, which promote projects of general public utility

relation to dairying.

To make information available on request to technical services

to increase production of Milk.

To prepare initial feasibility studies of dairying and other dairy

related projects and undertake subsequent designing planning

and start up those projects.

To undertake research and development programme related to

production and marketing of milk and milk products.

To provide assistance for exchange of information to other

international agencies.

Page 6: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 6

Services rendered by NDDB:

NDDB provide the following services.

Planning dairy and rural development projects.

Organization of farmer co-operative societies.

Setting up of dairy and cattle feed plants.

Manpower planning and training.

Applied research and development.

Implementation of milk production enchantment programme.

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 Karnataka 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 Dairy Development Co-

operation, small co-operatives and Karnataka Milk Production

Development and loose vendors.

At the end of the March 1998, the network of 8023 Diary Co-

operative Societies (DCS) have been established which are spread over

166 taluks of the total 175 taluks in all 27 districts of Karnataka. There

are 13 Milk Unions and Dharwad Milk Union (DMU) is one among

them. There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk

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Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 7

plants and 2 Product dairies for chilling, processing, conservation and

marketing of milk. To supply cattle feed there are 4 cattle feed plants.

Karnataka co-operative Milk Producers’ Federation

Limited (KMF)

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 and regional training

institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants

(2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply

nitrogen, which is used for Refrigeration purpose. Three diagnostic

centers have been set-up for monitoring diseases: three fodder farms at

Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good

quality of fodder and seed production farm at Shahpur has been set-up.

The federation giving details of the latest technology in dairy

industry etc is published „‟Ksheer Sagar‟‟ magazine monthly.

KMF is a co-operative apex body in the state of Karnataka for

representing dairy organizations and also implementing dairy

development activities to achieve the following 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 production inputs, processing

facilities and dissemination of know-how.

Page 8: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 8

FUNCTIONS OF KMF

Co-ordination of activities between the unions.

Developing the markets for the increasing in milk production.

To make the brand „‟Nandini‟‟ as a house hold name.

Excellence in quality is to be maintained to lay a solid

foundation for wide

Spread acceptance of „‟Nandini‟‟ products.

To increase the market share of „‟Nandini‟‟.

COMPANY PROFILE

2.1) Dharwad Milk Union

Dharwad Milk Union Limited (DHAMUL) is functional in the

milk rich district of Belgaum in Karnataka. Its milk shed area includes the

whole district of Belgaum.

The government of Karnataka established the Belgaum Dairy in

1966 with a capacity of 10 LTPD (Litre Ton Per Day) and procurement

of 3000 kgs per day. In 1985 it was taken over by the Dharwad Milk

Union (DHAMUL). On its joining the KMF in 1985, it became as part of

the area in which the operation flood 3 was implemented. Under this a

new dairy with a capacity of 60 LTPD was established at a cost of

Rs.5.82 crores. A chilling center with a capacity of 20 LTPD and form

cooler with a capacity of 60 LTPD was also established as a part of this

scheme.

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Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 9

Today the union is procuring milk from over 435 DCSs (District

Co-Operative Societies) of which 319 are functional. Their Functional

DCSs of which 319 are functional. Their functional DCSs has shown

steady increase over the past few years with the member starting at 71787

in November 1997. The effort of the union on the procurement side has

lead to its procuring in an average of 461846 of its milk everyday.

Bankers - Belgaum Dist Co- operative Bank, State Bank of Mysore,

Belgaum

Malprabha Gramhina Bank

Auditor – Shri M. R. Joshi & co. Dharwad

Asst. Auditor – Shri S. B. Devarmuni Asst. Director

Shri K. V. Joshi Senior Auditor

Functions of DHAMUL

The main function of is to procure milk from villagers and pay

them the right price.

To educate the villagers about milk and its quality

To make‟Nandini‟ as a part of daily life.

To provide good quality of cattle feed, fodder, veterinary properly

and in an efficient manner.

To see that the DCS‟s are carrying out their activities properly and

in an efficient manner.

To see that the milk is brought from DCS‟s to the chilling centers

in the prescribed time.

To look the account of the DCS‟s supervise the purchase process

and market the milk and milk products.

Page 10: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 10

Objectives of DHAMUL:

Providing hygienic and good quality of milk to the consumers.

To build the economic strength of the milk products in villages.

To eliminate middlemen‟s in the business so that the milk products

receive there appropriate share of bread.

To educate the villages about the adulteration of milk and its

harmful effect on the body.

To see that every citizen becomes healthy by consuming good

quality of milk.

To make villagers self-viable and build self image.

Process at DHAMUL

The milk collected at DCS‟s is brought to the center thought carries

trucks etc. the quality and quantity of milk bought is checked at the

Reception center by a supervisor.

A sample of milk is taken and is tested in a laboratory for fat

content, Solid Not fat (SNF) acidity etc.

As the milk is at room temperature is to be brought down to 40 c to

50 c. so that it may check the growth of bacteria. To ensure this milk is

passed through a chilling chamber where the milk is chilled. Its

temperature is bought down and then the milk is stored in a tank called as

Ram Milk Tank

From this tank milk is pumped to a pasteurizing cell where the

milk is heated up to 720 c and 15seconds, so that all the bacteria and

microorganisms may be killed and then the milk is simultaneously cooled

to 40 C to 5o C and is store in a „Pasteurized Milk Tank‟

From here the milk is separated according to the requirement of

production of different types of milk and the remaining milk is used for

manufacturing milk products.

Page 11: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 11

Nature of business carried

One of the core functions is procurement of milk, processing it and

marketing milk and milk products. DHAMUL markets its products under

the brand name Nandini.

VISION, MISSION AND QUALITY POLICY OF THE DHAMUL:

VISION STATEMENT

Dharwad Milk Union in committed to conserve to conserve energy

and Maintain in the areas of plants by educating all the connected staff

and thereby gaining competitive edge by reducing operation cost control,

increasing market share of milk and milk products for prosperity of

producers, consumers and employee for mutual help for nation and

organizations.

MISSION STATEMENT

At DHAMUL we Endeavor to satisfy the taste and nutritional

requirements of the customers. Through excellence in marketing by

DHAMUL committed team, DHAMUL committed to offering quality

products that provide best value for product.

QUALITY POLICY:

To ensure pure, hygienic milk and milk products through

continuous improvement of quality standards.

VALUES:

Cleanliness

Total quality maintenance

Discipline

Co-operation.

Transparency

Page 12: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 12

Product Profile

Nandini Toned Fresh and Pure milk

containing 3.0% fat and 8.5% SNF. Available in

500ml and 1litre packs.

Nandini Homogenized Milk is pure milk

which is homogenised and pasteurized. Consistent

right through, it gives you more cups of tea or

coffee and is easily digestible.

Full Cream milk. Containing 6% Fat and 9

% SNF.A rich, creamier and tastier milk, Ideal for

preparing home-made sweets & savouries.

Cow's pure milk, UHT processed bacteria

free in a tamper-proof tetra-fino pack which keeps

this milk fresh for 60 days without refrigeration

until opened. Available in 500ml Fino and in

200ml Bricks

A taste of purity. Nandini Ghee, made from

pure butter. It is fresh and pure with a delicious

flavour. Hygienically manufactured and packed in a

special pack to retain the goodness of pure ghee.

Shelf life of 6 months at ambient temperatures. Available in 200ml,

500ml, 1000ml sachets, 5lts tins and 15.0 kg tins.

Page 13: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 13

Nandini Curd made from pure milk. It's thick

and delicious. Giving you all the goodness of

homemade curds. Available in 200gms and 500gms

sachet.

No matter what you are celebrating! Made from

pure milk, Nandini Peda is a delicious treat for the

family. Store at room temperature approximately 7

days Available in 250gms pack containing 10 pieces

each.

Great way to those soft and juicy jamoon treats

at home! Nandini Gulab Jamoon Mix is made from

Nandini skimmed milk powder, maida, soji and

Nandini Special Grade Ghee. Available in 100gms

and 200gms standy pouch with a five layer foil lamination. Shelf life of 6

months.

Nandini spiced Butter Milk is a refreshing

health drink. It is made from quality curds and is

blended with fresh green chillies, green coriander

leaves, asafoetida and fresh ginger. Nandini spiced

butter promotes health and easy digestion. It is

available in 200 ml packs and is priced at most competitive rates, so that

it is affordable to all sections of people.

Page 14: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 14

Sterilised flavoured milk, a nutritious and healthy

drink and an all-season wholesome drink available in

five different flavours - pineapple, rose, badam, pista

and natural orange. Apart from refreshing energy.

Available in 200ml

Rich, smooth and delicious. Nandini Butter is

made out of fresh pasturised cream. Rich taste, smooth

texture and the rich purity of cow's milk makes any

preparation a delicious treat.Available in 100gms

(salted), 200gms and 500gms cartons both salted and unsalted,

Area of operation - Regional

Ownership pattern.

DHAMUL builds and runs under the co-operative institutions such

as

District Co-operative Society. (DCS)

National Dairy Development Board. (NDDB)

Page 15: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 15

Competition Analysis

In towards world every organization is in search of the market

potential the Belgaum round about 5 lakh to 10 lakh population is their so

a huge population city can be easily targeted by the competitors.

The main competitor for every dairy is the milk man. They are the

one who have captured major share of the milk supply because of their

long term relationship and contacts they have maintained the customers

dairies like Mata, Mahalaxmi, Gokul, Arokya & based on religious

matters captured 5% of the market shares.

Most of the companies tried to face the competition but they where

failed.Firstly, DHAMUL was header in milk business, but now a days

because of entry of all these dairies it is facing lot of competition. The

neighboring state Maharashtra has entered into the mkt to complete mkt

the brands like Mahalaxmi, Sahyadri are entered into the Belgaum mkt.

Brief history about competitors of DHAMUL

The Belgaumers taste new brands of milk every year Right now/

till date there are 16 competitors in the mkt apart from Nandini. The 5

major brands which are very competitive for Nadini are Mayur,

Mahalaxmi, Arokya, Sahyadri and Aditya.

Arokya Dairy: it procures most of the milk from south side of the

Belgaum. It procures 10,000 litres of milk every day. It is located near

Desur a village of Belgaum district 10 kms away from city on NH4 A-

they supply most of the procured milk to the city.

Page 16: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 16

Mayur Dairy: It procures milk mainly from Taluka‟s at Belgaum district

namely Chikkodi, Raibag & Athani they procure 25,000 litres per day. It

is located in Kolhapur & the supply milk to Belgaum as well as Kolhapur

district.

The standard milk of Mayur dairy contents a fat of 6.5% & 9%

with this fat & S.N.F they supply nearly 10,000 LTPD.

Sahyadri milk: The dairy is located in Shinnolli Taluka, Chandgad &

district Kolhapur. This is 15 kms away from Belgaum city. It procures

dairy about 30,000 LTPD which will be supplied in the Belgaum city as

well as in the Maharashtra state.

Mahalaxmi Dairy: The Mahalaxmi dairy plant is located near Kolhapur,

Maharashtra state which procure round about 15,000 to 20,000 LTPD &

its target mkt area in Belgaum district, Gokak & in Maharashtra

state.Besides above main brands to other competitive brands like,

Krishna, Gopal, Aditya, Arokya etc.

Infrastructural facilities.

Infrastructural facilities of DHAMUL are as follows.

Security facilities.

Canteen facilities.

Shifts facilities-3shifts per day.

Land 22 acres

Achievements or awards

No awards

Page 17: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 17

Work flow Model

(End to End) Production process has the following workflow

model.

DCS

Fresh Liquid Milk

Chilling

Storing

Pasteurization

Storing

Packing

Dispatching

Sample Testing Fat and SNF

Separation

Homogenization

Page 18: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 18

Page 19: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 19

2.11) Future growth and prospectus

Government of Karnataka and NDDB has signed a memorandum

of understanding 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 dairy co-operative to face the challenges of an increased

demand for milk and milk products by focusing efforts. Enhancing

productivity, managing quality and building national information network

plans are under implementation.

Reparing for ISO-9001 certification.

Marketing quality improvement.

Developing HACCP-hazards Analysis and Critical Control Points.

Getting export grade milk powder

Expansion of Gokak chilling centers

Page 20: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 20

Part-B

McKensy’s 7S Model

Page 21: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 21

Part-B

Mc Kensy’s 7S Frame Work

The 7S model is better known as McKensy‟s 7S, because the two

persons who developed this model, Tom Peters and Robert Waterman, have

been consultants at McKensy‟s and Co. at that time. They published their 7S

model in their article “Structure is not Organization” (1980) and in their books

“The art of Japanese Management” (1981) and “In Search of Excellence”

(1982).

The model consists of seven elements. Those seven elements are

distinguished in so called hard S‟s and soft S‟s. The hard elements are feasible

and easy to identify. They are Strategy, Structure and Systems of the

organization. The four soft S‟s are hardly feasible. They are highly determined

by the people at work in the organization i.e., Style, Staff, Skills and Shared

values

Page 22: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 22

1. Structure

Organizational Structure

Board of Management

Managing Director

Procurement

& Input

Deputy

Manager

Account

Officer

Account

Assistant

Grade

I, II, III

Suprede

nt

Administ

ration

Clerks

Compute

r

Operator

s

Attainde

r

Security

Officer

Assistant

Security

Officer

Security

Guards

Canteen

Cooks

Manager

Deputy

Manager

P & I

Assistant

P & I

Extensio

n Officer

Deputy

Manager

F & F

Agricultur

e

Officer

Assistant

s

Deputy

Manager

Veterina

ry

Assistant

Manager

Grade

I, II, III

Administrati

on

Assistant

Manager

Assistant

s

Grade I

Helper

Finance Purchase

Veterina

ry

Assistant

s

Page 23: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 23

Board of Management

Managing Director

Officer

Assistants

Assistants

Grade I,

II, III

Clerks

Manager

Assistants

Manager

Marketin

g Officer

M I S Marketing Manager

Dairy

Helpers

Dairy

Superviso

rs

Operator

s

Deputy

Manager

(Productio

n)

Assistants

Manager

Technical

Officer

Helpers

Technicia

ns

Helpers

Assistant

Manager

Engineerin

g

Technical

Officers

Dairy

Superviso

rs

I, II, III

Helpers

Quality

Control

Technical

Officer

Lab

Technicia

ns

Helpers

Stores

Stores

Officer

Stores

Assistant

Drivers

Transpor

t

Superviso

r

Clerks

Page 24: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 24

DEPARTMENTS OF THE COMPANY

1. Production department

2. Administration department

3. Engineering department

4. Procurment & input department

5. Stores department

6. Security department

7. Processing department

8. Quality control department

9. Finance department

10. Markrting department

11. Distribution department

PRODUCTION DEPARTMENT

Production department is the main department wherein the raw material

is converted into finished into products. At DHAMUL production department

is well planned & adequately equipped manufacturing set up where all the

necessary infrastructure is available. The quality of the product is also

dependant on the production procedure.

In DHAMUL the raw milk is processed to form the good quality of

milk. During the processing the milk is differentiated depending on the contract

of FAT & SNF (Solids Not Fat)

The different types of milk different in quality are

Page 25: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 25

TYPES OF MILK FAT SNF

Full Cream Milk 6% 9%

Toned Milk 3% 8.5%

Standardized milk 4.5% 8.5%

Full Cream Milk 6% 9%

Shubham milk 6% 9%

The production procedure at DHAMUL is done under different stages. The

stages are as follows:

1. COLLECTION OF MILK :-

In this stage the milk is bought from the various district co-operative

societies (DSC) to the main dairy in a can of 40 litters capacity in tempo‟s or in

any other vehicles. The cans marked with two different colours to differentiate

between the cow & the buffalo milk. One the milk is bought to the main dairy

it undergoes into following process.

2. UNLOADING

The cans were unloaded is called as dock station. The cans are unloaded

from the vans manually.

3. ORGANOLEPTIC TEST

This test is carried out by a person manually without using any machines

but using his sense organs like nose & hence it is called as organoleptic test.

This test is conducted before the cans are weighed. In this test various sub-tests

are conducted like:

SMELLING (ODOUR) TEST:-

A man at dock station or platform checks the acidic nature of milk by

smelling or tasting the raw milk. If the tasted milk has bad odors then the dairy

will pay lower rate to such society members than the normal rate.

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Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 26

EXTRANEOUS-MATTER APPERANCES:-

In this test the raw milk is undergone into the test, which is conducted

by the chemist. The chemist checks for two aspects mainly whether the milk is

contaminated or not & the milk is in liquid form or curd form. He also checks

for any extraneous matters like dust, flies etc. which lead to spoilage of milk.

AICDIC TEST

As the payment to the suppliers or DSC depends mainly on FAT & SNF

content in the raw milk. The supplier may add sugar to the milk so as to

increase the FAT & SNF content. Hence to avoid this adulteration sugar test is

done.

Its procedure is 10ml of milk is shaken in a test tube & 1ml of

hydrochloric acid. Few crystals of resorcinol is mixed to it. The solution is

shaken well & heated for five minutes. If solution turns organ color it is

demanded that sugar is mixed to it.

STORAGE OF CHILLED MILK:-

Once all the tests are over, the milk is allowed to store in the SILOS

(Storage tank). So as to maintain its cold level of 4 degree celcious. The

unions having 7 storage tanks, 3 tanks are vertical with 30000 litters‟ capacity

each and the remaining 4 are horizontal among which 2 are having the capacity

of 10000 litters each and other 2 of 15000 litters each. After chilling the milk is

passed through pasteurizer for pasteurization.

PESTEURIZATION:-

This step of production includes heating every partical of milk at 72

degree celcious in 15 seconds and it cold in less then 4 degree celcious. When

it is passing through pasteurization the cream is removed depending on the

quality of the milk required (standardization).

Page 27: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 27

PACKING:-

Once the pasteurization closed is conducted the next step is to pack the

milk. The packing is done by the machine of fluid goods and were as it is done

manually in case of solid goods like pheda. The machine packs the raw milk in

two size that is 500ml and 1000ml pouches. These machines are automatic with

a capacity of packing 10000 to 14000 pouches per hour. The speed can be even

altered according to suitability. These machines are used to pack all different

types of milk in plastic bags. These plastics are polythene bags required for

packing milk is bought from Bangalore.

STORAGE:-

The last but not the process is the whole of production process is

storage. The milk packed in 500ml and 1000ml pouches are arranged in the

crates. Each cater contain 10 litters of milk. This caters are stored in cold room

which has a temperature of about 5 degree Celsius or below.

ADMINISTRATION DEPARTMENT

FUNCTOINS

1. Maintenance of attendance.

2. Establishment of billing.

3. Maintenance of service records.

4. Domestic enquiry.

5. To maintain shifts timing.

6. To look after recruitment process.

7. Conducting training to the new employees and also to the existing

once.

RESPONSIBILITIES OF ADMINISTRATION DEPARTMENT

To look after the overall administration of time office management.

Conducting training to the new employees and also to the existing once.

To look after over recruitment process.

To maintain shifts timings.

Page 28: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 28

MARKETING DEPARTMENT

The marketing department is the nearest of any organization. In today‟s

highly complex and competitive world, marketing is the tool, which has to be

derived properly to sell the product. Marketing is the more of a complex job

and it requires a great deal of the knowledge about the market that its

competitors. The marketing management requires planning, analyzing,

implementing and controlling of programmes designing to create, build and

maintain beneficial exchange with target buyers for the purpose of achieving

organization objective.

OFFICE WORK:-

1. Checking daily sales as per the respective agents.

2. Finding new areas where there is demand for milk.

3. Issuing tender and receiving application for opening new parlors and

agencies.

4. Fixing/organizing milk distribution routes.

5. Sending of milk / milk products as per the indent.

6. Keeping in track of the timing of vehicles and timely supply of milk.

7. Collection of cash from agents and depositing the same to the milk.

8. Attending complaints from the agents.

9. Meeting agents to solve their problems.

10. Draw new advertising strategy.

FIELD WORK:-

Sales promotional activities like advertisement in reality selling. The

product in the real marketing is very hard and tough job. The marketing officer

has to go the field and study the market and they have to plan the strategy. The

marketing mix plays a vital role while appointing the agents they take initial

deposit of Rs.2000 for Belgaum district and Rs.1000 in Goa. After receiving

deposit they issue bond to them. The bond consists of rules and regulation of

the union.

Page 29: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 29

2. Strategy

To serve as an instrument of the national to achieve self reliance in the

design, development and Quality Production of DHAMUL Products to

meet the customer‟s changing and growing needs with special emphasis

on military requirements.

In fulfillment as this objectives, the company shall regard itself

fundamentally responsible design and developments, relying however

on such relevant facilities as are available in other National institution

but always holding itself basically responsible for the growth.

To conduct its business economically and efficiently that it contribute its

due share to the National Efforts to active self reliance and self

generating economy.

Towards this end to develop, maintain an organization which will

rapidly respond to and adopt the changing Matrix as socioeconomic

relationship and where in a climate as growing technical competence.

Self discipline, mutual understanding deep commitment and sense of

belongingness will be fostered and each employee will be encouraged to

grow with accordance to his potential for the furtherance as

organizational goals.

Consistent with the basic objectives of the state the personal department

of the corporate office has adopted certain specific objectives, which

will act as a source as inspiration and guidance in evolving per sonnet

policies and roaming rules and regulations for growth and development

or employees and to ensure their deep commitment and sense of

belongingness to the company, and the objectives are stated below.

1. Insure equality at all the levels and provide them the right work

Environment, job satisfaction and professional challenges.

2. Provide healthy blend or employee who have grown with original

those Selected from outside

Page 30: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 30

3. System

The stores Department in DHAMUL follow the Codex system (Coded

Control system). A card is maintained for each item and a number is allotted.

The card is attached to each article consists of amount balance, date of issue,

purchase etc. this is later recorded in separate ledger book. The inventories are

of different kind ranging from mechanical, spares, packing items to animal

drugs etc.

This department has the following services:

It tries to maintain maximum and minimum level of inventory

Ordinary and locally available commodities are maintained at

minimum possible level.

4. Staffing

The staff deals with the various personnel policies followed by the

organization. Below are given the personnel policies followed by the

organization.

Personnel policies:

There are around 240 employees working. There are various policies

followed. The Administrative department forms the policies.

Recruitment and Selection:

Due to registration, termination, retirement and transfers the concerned

department head will give the manpower requirements along with the job

description.

The manpower sourcing is done through advertisement, manpower

consultant, and employment exchanges and personnel reference.

Promotion:

Promotion is on the basis of seniority.

Page 31: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 31

Induction:

After an employee is employed in DHAMUL, he\ she has to make

familiar to the union and also to know the objective, value, functions and the

operations. This helps the employees to interact with senior staff members from

various departments.

Salaries and Employee Benefits:

Gross salary:

A regular staff member in the union will have a gross salary consisting

of basic salary, dearness allowance, cca, house rent allowance and conveyance

allowance.

Other facilities:

Shift allowance

Canteen facility

5. Skills

These are the distinctive competencies that are present in the

organization it is the design and development of products quality and service or

viability of product. The employees in this organization also have all the

distinctive skills that are required for the undertakings of research and

development activities. The DHAMUL is improving the employee‟s skills and

techniques through motivating them and giving proper training to them also

through giving proper working condition.

6. Style

a) DHAMUL has top to bottom or top down style system.

b) The style of organization is authoritarian. It means management cadre

follows authoritative.

The indicators of the style are:

Follows rules and orders

Reliable and dependable

Page 32: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 32

Decision making parameter for day-to-day operation:

Top manager will tell marketing manager to collect information

regarding daily requi9rementsw of the sale of milk and milk products based on

demand. Then this information will provided to production department

indicating production activities

7. Shared Values

The core or fundamental values that are widely share in the organization

and serve as guidelines that are important, these values have great meaning

because they focus attention and provide broader since of purpose.

The values of the organizations are

1) Customer Satisfaction

2) Commitment to total quality

3) Cost and time consciousness

4) Innovative and creative

5) Trust and team spirit

6) Respect for individually

7) Integrity

Page 33: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 33

PART-C

FINANCIAL STATEMENT ANALYSIS

Page 34: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 34

ACCOUNTING POLICIES AND PRACTICES IN

DHARWAD MILK UNION

Dharwad Milk Union (DMU) follows double entry system.

The double entry system records both the aspects of transactions

and events. The accounting procedure, analysis transactions and

events in to debit and credit and records both the aspects in a

systematic manner. The accounts have been prepared to comply

in all material aspects with applicable accounting principles in

India. The discussion on accounting policies and paractices in

DMU covers the following issues:

1) Fixed Assets

2) Investments

3) Capital Account

4) Depareciation

5) Current liabilities

6) Profit and loss account

7) Inventories

Page 35: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 35

Accounting system:

If an entity is to communicate financial information, it must have the ability of collect

and appropriately arrange the necessary data. This requires the development of a process for

taking bits of information (inputs) and converting them into meaningful reports (outputs). The

systematic process followed by a firm is accumulating and reporting its financial

information is referred to as an accounting system. The type of accounting system used by

a firm depends upon the type and information it needs. In effect, the output of an accounting

system dictates the way that information is to be accumulated. An accounting system must be

extremely flexible and capable of being tailored to the requirements of a particular firm.

There is no single accounting system which can be followed by all firms.

Accounting as the basis for decision making:

The primary purpose of business activity is to make a profit, the business enterprise,

regardless of its size operates by combining physical resources and individual talents to

provide a product or service for members of society. Hopefully, resources received by the

firm from the sale of its products or performance of its services exceed the capital and labour

consumed in producing the product or providing the service. To achieve this result, managers

of a business enterprise are responsible for obtaining maximum advantage from use of

resources placed at their disposal. Managers need internal financial information to help them

make decisions regarding the use of the firms resources. Investors, creditors, and other

outside parties need external financial information in order to make decisions regarding their

interests in the firm.

Page 36: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 36

1. FIXED ASSETS :

Accounting Policies : Fixed assets are stated at original cost. Fixed assets held

with an intention of being used for production and providing goods and

services and which is not held for sale, for example fixed assets like, training

centre assets, Bore well, Canteen equipments, dairy equipments, Factory

building, furniture and fixture, milk parlour, office equipment, refrigerator,

vehicles, weighing equipment etc.

The fixed assets of DMU five year (1998-2003) is shown in Table 4.1

Table 4.1

Year Amount (Rs. in lakhs)

1998-99 1106

1999-2000 1084

2000-01 1041

2001-02 9980

2002-03 9709

Source : Annual Reports

Page 37: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 37

The transactions relating to fixed assets which take place during a year

are suitable adjusted against the opening balance. The previous year balance

will be opening balance for current year. There is a decrease in the value of

fixed assets every year as evident from table.

2)Investments :

Accounting policies : Investment is keeping capital in assets for attaining the

return from them other than those in which the enterprise is dealing. These

include. KCC bank share, KMF shares, KMF central office, fixed deposit,

KMF share govt., co-operative institution investments are classified into

current investments which is carried in the financial statement at the lower of

cost and fair value; and long-term investment which is carried in the financial

statement are stated at cost, after providing for any diminution in value.

Investments made by DMU for five year (1998-2003) are shown in

Table 4.2

Page 38: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 38

Table - 4.2

INVESTMENTS

(Rs. in lakhs)

Investments 1998-99 1999-00 2000-01 2001-02 2002-03

Co-operative

institution

0.25 0.25 0.25 0.25 0.25

KCC bank

share

6.87 6.87 6.87 6.87 6.87

KMF shares

LDBF

2.50 2.50 2.50 2.50 2.50

KMF central

office

2.20 2.20 6.20 6.20 6.20

Fixed depost -- 9.73 21.39 20.13 21.02

KMF shares -- -- 100.00 100.00 100.00

Total 11.82 25.55 137.21 135.95 136.85

Source : Annual Reports

Page 39: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 39

Table 4.2 reveals that there has been an increase in investments, which

are used for stabilizing the liquidity position as well as strenghtening the

profitability position of DMU.

3)Capital Account :

Accounting policy : Capital is the amount invested by a proprietor or partner

in the business enterprise. The capital in a DMU is called share capital. The

share capitals ae classified into A class-share capital, these are the farmers

share; and B clas-share capital is the shares of government authorities.

The information relating to capital account of DMU is shown in Table 4.3

Table 4.3 CAPITAL ACCOUNT

(Rs. in lakhs)

Investments 1998-99 1999-00 2000-01 2001-02 2002-03

Reserves and supuls 475.77 475.77 478.08 489.32 489.32

Share capital – A class 74.27 83.20 78.03 78.15 78.27

Share capital-B class -- -- 200.00 200.00 200.00

Share suspence -- -- -- 0.00127 0.00127

Total 550.04 558.97 754.12 767.48 767.59

Source : Annual Reports

Page 40: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 40

Table 4.3 reveals that during the year 1998-99, 2000-2001 there was

increase government shares. The Government observed that there was

contingent loss, it decided to investment a fixed amount of shares i.e. Rs. 2

crores in DMU for its development. From 2000 onwords every year the

government started investing shares in DMU. A class shares are from farmers

societies. There are 723 societies. Shares price is Rs. 1000 per share, shares @

Rs. 1000 for each 2000 shares.

4) Depreciation :

Accounting Policy – Dharwad Milk Union follows Writen down value (WDV)

method of depreciation method for depreciation. Depareciation is calculated on

the transactions relating to an asset which take place during a year (i.e.

additions and sale of an asset) depreciation is ascertained as the rates given by

the valuers. This amount is transferred to profit and loss account.

The information relating to depreciation account of Dharwad Milk

Union is shown in Table 4.4

Page 41: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 41

Table 4.4

DEPARECIATION ACCOUNT

(Rs. in Lakhs

YEAR Dpreciation

1998-99 46.17

1999-2000 45.91

2000-01 46.93

2001-02 49.11

2002-03 46.83

Source : Annual Reports

Table 4.4 reveals that during the five years there is increase and decrease

in the value of an asset to additions and sales of an asset.

5) Curent liabilities.

Accounting policies : current liabilities are treated as contingencies.

Contingencies arise when uncertain conditions prevail. It includes grants other

liabilities salaries recovered security deposit, unpaid salary/wages, duties and

taxes, and sundry creditors.

Page 42: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 42

The information relating to current liabilities of DMU is shown in Table 4.5:

Table - 4.5

Current liabilities

(Rs. in Lakhs)

YEAR Current liabilities

1998-99 431.37

1999-2000 45.91369.75

2000-01 46.93387.58

2001-02 49.11454.25

2002-03 46.83611.39

Source : Annual Reports

Table 4.5 reveals that during the year 1998-99 to 1999-2000 there is

decrease in value current liabilities. But from the year 1999-2000 to 2002-2003

there is increase in value of current liabilities.

Page 43: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 43

6) Profit and loss Account :

Accounting policies : The profit and loss account is treated as revenue. It

includes all the expenses, purchases, sales and income. This accounting

standard deals with the various bases to be adopted in accounting the revenue

in profit and loss account.

The financial position of DMU for the last five years is shown in Table 4.6

below-

Table - 4.6

Profit and loss account

(Rs. in Lakhs)

Year Profit Loss

1998-99 -- 77.79

1999-2000 -- 71.33

2000-01 18.14 --

2001-02 -- 232.71

2002-03 -- 50.26

Source : Annual Reports

Page 44: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 44

PART – D

ANNUAL REPORT

Page 45: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 45

ANNUAL REPORT

BALANCE SHEET FOR THE YERR 2007-2008

PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.)

To, opening

balance

To, purchases

To, manufacturing

expenses

To, vehicle

To, wages and

salaries

To, postage and

telegram

To, selling and

distribution

To, bank loan

To, technical

expenses

To, grand total of

expenses

To, profit

80,56,515.23

21,74,19,491.24

2,46,51,716.92

1,79,344.93

2,27,26,295.45

31,97,145.32

1,28,98,156.15

34,51,969.20

33,75,948.79

32,09,565.00

14,04,269.59

By, sales

By, other expenses

By, closing stock

28,09,85,013.03

36,10,597.02

1,59,74,807.77

TOTAL 30,05,70,417.82 30,05,70,417.82

Page 46: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 46

Balance Sheet Continued

As at 31-Mar-2007

Capital Account (C/A)

Reserves and Surplus

Share Capital

Share Suspense

Loans (Liability)

Secured Loans

Unsecured Loans

Current Liabilities

Grants

Interest Short profit U/S

68

O.S.L.

Other Liabilities

Salary recoveries

Security Deposit A/c

Short profit A/c U/s 68

Duties and Taxes

Provision

Profit and loss A/c

Opening Balance

Current period

Total

4,04,19,718.91

1,27,94,200.00

1,53,016.41

______________

3,79,04,974.00

89,727.07

______________

84,858.00

5,22,730.00

1,08,52,250.92

18,85,688.84

6,40,426.30

33,53,706.50

10,12,300.00

85,134.81

3,65,82,854.59

_______________

3,96,41,686.94

( - ) 49,50,948.64

5,33,66,935.32

3,79,94,701.07

5,50,19,949.46

( - ) 3,46,90,738.3

11,16,90,847.5

-----continued

Page 47: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 47

ANNUAL REPORT

1-April-2007 to 31-March-2008

As at 31 – Mar – 2008

Application of found

Fixed assets

Fixed assets

Work in progress

Investments

B D C C BANK SHARE

BELGAUM DIST. CO. OP

UNION LTD. BGM

INDIAN FARMERS & F

OC OP LTD

I S B D HARAYAN

KMF SHARE

Current Asset

DEFFERED INT (NDDB)

INTEREST

RECOVERABLE U/S 68

MISAPPROPRIATION

RECOVERABLE DUE U/S

68

Closing Stock

Deposits (Assets)

Loans and advances

(Asset)

Sundry Debtors

Cash-in-Hand

Bank Accounts

D D F GRANT

RECIEVABLE

TOTAL

7,88,19,921.14

49,98,387.00

______________

4,01,000.00

_______________

58,16,576.41

5,22,730.00

3,24,812.19

10,12,300.00

89,70,871.95

19,71,972.50

6,93,827.30

19,54,337.35

3,76,727.35

57,29,318.04

63,144.00

_______________

8,38,18,308.14

4,36,102.00

25,100.00

1,00

10,000.00

1,00

2,74,36,437.41

_______________

11,16,90,847.55

-----Continued

Page 48: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 48

Profit and Loss A/c

1-April-2007 to 31-March-2008

As at 31 – Mar – 2008

Trading Account :

Sales Accounts

Sale-cattle feed

Sale of milk

Sale of milk Product

Sale of P & I

Sale other sales

Cost of sale :

Opening stock

Add: purchase accounts

Less: closing stock

Direct Experience

P & IWING

EXPERIENCE

PROCE AND

MANUFACTURING

EXPES

Gross Profit :

Income Statement :

3,28,12,834.35

28,28,34,885.46

2,11,51,953.14

17,41,273.00

1,95,659.95

______________

75,26,736.80

25,31,82,193.69

89,70,871.95

______________

25,17,38,058.58

3,43,54,210.41

_______________

41,12,127.50

3,02,42,082.01

33,87,36,605.99

28,60,92,268.95

5,26,44,337.04

Indirect Incomes

OTHER INCOME

41,95,367.83

-----continued

Page 49: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 49

DHARWAD MILK UNION –

Particulars 1-April-2007 to 31-March-2008

Indirect Experience

ADMN. EXPERIENCE

INTEREST AND

BANK CHARGES

SELLING AND DIST

EXPERIENCE

STAFF EXPENSES

BAD DEBTS A/C

DEPRECIATION A/C

EXP RELATING TO

PREVIOUS YR.

Net Profit

44,27,632.63

35,20,933.17

1,56,39,207.25

2,48,23,769.23

2,47,966.95

32,09,787.00

19,460.00

_______________

5,18,88,756.23

49,50,948.64

Present Sales Structure

Year Avg Sales (Litres)

2002-2003 47,320

2003-2004 46,696

2004-2005 45455

2005-2006 44,331

2006-2007 43,185

2007-2008 56,936

Page 50: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 50

LEARNING EXPERIENCE GAINED IN THE KMF

1. Got complete knowledge of quality testing.

2. Method of maintaining accounts in proper manner.

3. Learnt about the marketing strategy and sales promotion.

4. To know about the types of milk and how can it will be stored in the cold

storage.

5. Proper manner of maintaining punch cards and every time alert security

centers.

6. Learnt about the distribution channels it contains wide area of networking

also speed of operation.

7. Time Management.

Page 51: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 51

FINDINGS AND SUGGESTIONS

Page 52: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 52

FINDINGS OF THE STUDY ARE

1) DMU has produced many milk products. It is truly remarkable

growth, but some have been failed in making profits.

2) DMU has incurred losses during five year i.e. 2000 to 2002

except in 2003 there is profit.

3) DMU has not adopted any of the sales promotional tools to

improve the sales performance and also it has not adopted

advertisement and publicity satisfactory.

4) It is true that the milk union has training centre to train villagers

in regard to rear the cows and buffaloes and how to feed them

and what are different types of cows and buffaloes and what

type of yielding animals are suitable for there villagers etc., Milk

union training centre is concentrating its attention on the

increase in milk capabilities of cows and buffaloes.

5) DMU has failed in having effective management and skilled

labourers.

6) It is found that trading and profit and loss account and balance

sheet is not satisfactory for all these five years. The milk union’s

gross profit and net profit is not at all improved but it has shown

losses continuously for the period of five years. And study has

pointed out that assets and liabilities were increased during

these periods.

Page 53: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 53

7) DMU has not made profits from five years, hence it could not

distribute dividend to its village primary co-operative member

societies. This is in fact, not a healthy situation of the milk union.

It truly reflects that, DMU is in effective in management and

administration of the Milk Union and this situation is not

encouraging to village co-operative societies for its functioning.

8) The current ratio of the DMU is not satisfactory. As a convention

2:1 is considered to be satisfactory but the ratios of DMU shows

less than standard ratio. It means the DMU's capacity to

discharge the current obligation is not good. Least ratio is in the

year 2001-02 and highest ratio is in the year 1998-99.

9) The quick or acid test ratio of DMU is also very unsatisfactory.

As a convention a firm should have a quick ratio of 1:1 but the

ratios of DMU shows less than standard ratio. The first and third

year is some how manageable but other three years shows very

poor liquidity position.

10) The stock turnover ratio of DMU shows that the DMU manage

inventory efficiently. The ratio for the year 2000-2001 and 2001-

02 shows very high and it shows blocking of capital etc.

Page 54: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 54

SUGGESTIONS

In the light of the above findings, the following suggestions have been

made to make the Dharwad co-operative Milk Producers Society Union Ltd

success.

1) The loss making milk products must be stopped immediately.

2) The quality and quantity of the milk products must be improved

and there must be product differentiation.

3) The management must keep in mind the satisfaction of

prospective consumers.

4) DMU has not made profits due to more number of employees

appointed in the Milk Union. This is one of the most important

factors leading to incurring losses. So here it is being suggested

that the number of employees should be decreased to the

minimum possible extent.

5) Expenditure made by the DMU is unnecessary. Union has

suffered net loss. It must check such expenses.

Page 55: SAM_ KMF report for MKU

Dharwad Milk Union Ltd. KMF

IBMR - Hubli MBA, Programme. 55

BIBLIOGRAPHY

Human Resource Management

-By Subba Rao P.

Company Annual Report.

www.nandni.coop.

http://www.7s model of Mckinsey.com

ANNEXURE

Trading and profit and loss account & the balance sheet of DMU for the years

1998-99 to 2002-03.

CONCLUSION

If these suggestions are implemented, the DMU‟s overall performance

will be improved further.


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