It Project Manju

7/28/2019 It Project Manju

1/54

HASSAN MILK UNION

CHAPTER -1

INTRODUCTION:

As in every market the world mightiest are in India as elsewhere, theyare hunger for growth and push the market into technological up gradation

and shift the battle ground to this area of competence. The competition is

now on the horizon through promises to be different, the technology coming

in and into a liberalized market, where the consumer has suddenly worked

up to a new brand milk even has the old order straggles into modernization

of its product to a large position of the market might remain dull for milk and

milk products

As a major enterprise, the market milk industry is of comparatively

recent origin even in developed dairying countries (such as the USA) through

ancient written records report milk as an important food, it's processing and

distribution as a separate commercial business did not develop in those

countries until concentration of population in the cities reached a high level

in the middle of 19th century.

Dairy industry is of crucial importance to India. The country is the

world's largest milk producer, accounting for more than 13% of world's total

milk production. It is the world's largest consumer of dairy products,

consuming almost 100% of its own milk production. Dairy products are a

major source of cheap and nutritious food to millions of people in India and

the only acceptable source of animal protein for large vegetarian segment of

Indian population, particularly among the landless, small and marginal

farmers and women. Dairying has been considered as one of the activities

aimed at alleviating the poverty and unemployment especially in the rural

areas in the rain-fed and drought-prone regions. In India, about three-fourth

of the population live in rural areas and about 38% of them are poor.

SRI SIDDHARTHA INSTITUTE OF MANAGEMENT STUDIES , TUMKUR. Page 1


2/54

HASSAN MILK UNION

The milk processing industry is small compared to the huge amount of

milk produced every year. Only 10% of all the milk is delivered to some 400

dairy plants. A specific Indian phenomenon is the unorganized sector of

milkmen, vendors who collect the milk from local producers and sell the milk

in both, urban and non-urban areas, which handles around 65-70% of the

national milk production.

In the organized dairy industry, the cooperative milk processors have a

60% market share. The cooperative dairies process 90% of the collected milk

as liquid milk whereas the private dairies process and sell only 20% of the

milk collected as liquid milk and 80% for other dairy products with a focus on

value-added products.

The NDDB has recently put in place .Perspective 2010.To enable the

cooperatives to meet the new challenges of globalization and trade

liberalization. Like other major dairying countries of the world, the Indian

cooperatives are expected to play a predominant role in the dairy industry in

future as well. However, India is in the meantime, attaining its past glory and

is once again becoming .DOODH KA SAGAR.

Milk As such will not become a product. Milk produced from milk

producer generally, village former is collected and procured in dairy,

processed milk sachets are made and marketed to reach the consumer then

only milk becomes a product of the organization.

Milk is produced from the farmer or milk produced procured, processed

and marketed to customers in the cities. Since the milk purchased from

farmers or milk producers who lived in rural places of the district there by

the economic condition of the farmers are elevated. By the same time good

quality and vitalized milk is supplied to the consumers in the city areas. at

their feasible price the main aim of the NHPP milk unit is served by this at

every paisa and supply of milk.



3/54

HASSAN MILK UNION

Gradually farmers within easy driving distance began delivering milk

over regular routes in the cities. This was the beginning of the fluid milk -

sheds which surround the large cities of today. Prior to the 1850s most milk

was necessarily produced within a short distance of the place of consumption

because lack of Suitable means of transportation and refrigeration.With

modern knowledge of the protection of milk during transportation, it became

possible to locate dairies where land was less expensive and crops could be

grown more economically. The milk supply of the large cities of the USA now

comes largely from 80 - 160 Km or more away.

Nearly all the milk in the USA before 1999 was delivered as raw

(natural) milk. Once Pasteurization was Introduced, It caught on rapidly,

mechanical refrigeration contributed to the rapid development of the factory

system of market milk distribution.

Even today, hospitality could be considered generous and warm only

with serving of milk products. Today, Indian milk products are the largest and

fastest growing segment of the dairy industry. Milk and milk products are

highly valued in Indian society as a source of nutrition. This concept has with

stood the test of time. Dairying took roots in the north- west part of the

Country and spread virtually to the whole of the sub-continent. In India,

some 70 million farmers in 500000 villages mostly produce milk in small

quantities.

Buffalo and cow, and to a limited extent, goat are the main milk

animal. Buffalo Constitutes some 54%, cow 43%, and goat 3% to India's total

milk output.

1. In India, the market milk industry may be said to have started in 1950-

51, when the central dairy of the Aare milk colony in Bombay was

commissioned.

2. Handling of milk in sophisticated milk unions (Oldest 1913: Allahabad).



4/54

HASSAN MILK UNION

3. Long distance refrigerated rail- transport of milk from Anand to

Bombay since 1945.

4. Pasteurization and bottling of milk on a large scale for organized

distribution was started at Aare (1950), Calcutta (1959), Delhi (1959),

Worley (1961), and Chennai (1963),

5. Milk plants were established under five year-plan for dairy

development all over India with the dual object of increasing the

national level of per capita availability of milk and ensuring better

returns to the primary milk producers. The main aim was to produce

more, better and cheaper milk.

The market milk industry in the advanced dairying countries of the

world has now reached high level in sanitary production, transportation,

processing, and distribution. Credit should also be given to producers,

distributors, and manufacturers of dairy equipments for setting high

standards.

Dairy technology is the scientific basis of maintaining the herd of

cows and buffaloes, collecting and preservation of large quantity of

milk and producing to meet the demand of urbanization.

The Karnataka milk federation is most popularize KMF, evolved

itself as a premier and most profitable dairy farmers organization in

the state of Karnataka. Karnataka dairy development corporation was

formed; the company grew itself fast and as its spreads the wings of

new found rural economic activity. These organized dairies have been

successfully engaged in the routine commercial production of

pasteurized milk products.

Milk is highly nutritious and majority of Indian population rely on

milk for their protein supplement, milk is obtained by breed cows and

buffaloes, either manually or through satirized milk cream, ghee,



5/54

HASSAN MILK UNION

cheese, condensed milk protein are the dairy products.

Increased population and its growth rate in relation existing milk.

Animals, caused an imbalance between the demand and supply

condition of milk production and marketing of milk has been considered

a profitable business further the excess depending in agriculture

concentration of population in rural areas the nature of unemployment

and underemployment diverted the attention of the rural folk to

consider milk production as a subsidiary occupation.

CHAPTER-2

PRINCIPLES OF THE COMPANY

AIMS AND OBJECTIVES

Hassan co-operatives milk producers societies union is

completely an autonomous body consisting of representatives from milk

producers as policy makers. The area of operation is districts of Hassan,

kodagu and Chickmagalore. The milk union also aims at sustainable

development of rural areas through proper planning, training, strict

implementation and follow up of progress of various schemes offered

by both state and central government.

Formation of dairy co-operative societies under the principle of co--

operation to encourage small, marginal farmers and agricultural labours

to take up dairy activities.

To provide continuous and remunerative market for the surplus

milk in the rural areas.

To supply quality milk to customers in the urban areas at a

competitive price.



6/54

HASSAN MILK UNION

To provide necessary technical inputs to farmers to produce good

quality milk and to facilitate increase in milk yield.

To provide self-employment to rural folk and to make them

economically self-sustainable by which the migration of rural folk to

urban areas is minimized.

COMPANY VISION, MISSION, GOALS and OBJECTIVES:

VISION:

The union thrives hard to adopt the mode and eco-friendly

technologies to produce milk and milk products of international standards tomake our presence prominent the global market

MISSION:

Hassan milk union aims to render the best services at nominal cost to

its members and to increase milk production and produce good quality milk

by paying remunerative sssprice throughout the year, thereby improving

their economic and social condition while ensuring high quality milk and milk

products to the delighted level of the consumer

GOALS AND OBJECTIVES:

The milk union was started 4th june 1975, they want to develop their

milk union like AMUL CO-OPERATIVE SOCIETY .

To increase quality of milk.

To increase their sales from 1,25,000-2,00,000 litres per day in future

years Increase the sales by conducting many programs like consumer

information program, consumer diary visiting programs, hotel own

information program etc.

To increase the members of the union also.

To regularly supply the NANDINI milk to all the cities according to

customer needs.



7/54


8/54

HASSAN MILK UNION

The securtary of HAMUL:- Mr.kumar

The production manager of HAMUL:- Mr. Shridar

The marketing manager of the HAMUL:- Mr. Shivpraksha

The financial manager of the HAMUL:- Mr.Rangaswamy

The HR manager of the HAMUL:- Mr. NAGARAJ B.R

CHAPTER-4

PRODUCT PROFILE

ACCEPTANCE CRITERIA FOR DIFFERENT OF MILK PRODUCTS



9/54

HASSAN MILK UNION

NANDINI HOMOGINIZED MILK:

It is a pure homogenized, skimmed,

pasteurized, processed & packed hygienically.


S

L.

N

O

TYPE

OFPRODU

CT

COLOUR BODY&

TEXTURE

FLAVO

UR

FAT

%

SNF

%

MOIS

TURE%

%

FFA(Olei

c

acid)

ACIDI

TY %LACTI

C

ACID

1 CURD Creamish

yellow

Soft & Firm Sweet

mildly

acid

3.1 8.50 - - 0.9

Maxim

um2 PEDA Pale

yellow

with slight

brown

tinch

Soft &

granular

- 20

Mini

mum

- 15-20 - -

3 GHEE Bright Medium to

coursegrains with

very little

liquid fat

Nauty

orslightly

cooked

99-

99.5

- 0.5

Maximum

1.4

Maximum

-

4 BUTTER

MILK

White

with slight

greenish

- Masala - - - - 0.4

Maxim

um


10/54

HASSAN MILK UNION

It contains 4.5 % fat & 8.5% SNF. Rich, creamier and tastier milk.. Ideal

for preparing home-made sweets & savories. Available in 500ml and 1

ltr packs.

Energy 60KCAL.

Carbohydrate 4.7g.

Sugar 4.7g.

Proteins 3.3g

Minerals 0.7g.

Calcium 124mg.

Vitamin A 35ug.TONED MILK:

It is milk which contains 3.0% fat and 8.5% SNF.

Available in 500ml and 1 ltr packs

Energy 60KCAL.

Carbohydrate 4.7g.

Proteins 3.3g

Minerals 0.7g.

Calcium 124mg.

Vitamin A 35ug.

NANDINI GOOD LIFE:



11/54

HASSAN MILK UNION

Cows pure milk, UTH processed, bacteria free in a tamper-

proof tetra-fino pack which keeps this milk fresh for 60 days withoutrefrigeration unit opened. Available in 500ml Fino and in 200ml Bricks

at premium stores across the state.

NANDINI SLIM:

Cows pure milk, homogenized, skimmed. UTH processed

milk bacteria free in a tamper proof tetra- fino pack which keep the

milk fresh for 60 days without refrigeration unit opened. Nandini Good

Life Slim skimmed milk is 99.5 % fat free. Available in 500ml Fino and

in 200ml Bricks at premium stores across the state.

CURD:



12/54

HASSAN MILK UNION

It is made from milk. Its thick and delicious. Giving

all the goodness of homemade curds.

Available in 200gms and 500gms sachet.

Energy 58KCAL.

Carbohydrate 3.9g.

Fat 3.3gMinerals 0.7g.

Calcium 120mg.

Vitamin A 35sssg.

BUTTER MILK:

Butter milk is a refresing health drink. It is

made quality curds and is blended with fresh

green chillies, green coriander leaves, asafetida

and fresh ginger Buttermilk is packaged in

200ml packet.

Nandind spiced Butter Milk is a refresing health

drink. Nandini spiced butter promotes health and easy digestion. It is

available in 200ml packs and is priced at most competitive rates. So

that is affordable to all sections of people.

NANDINI PEDA:



13/54

HASSAN MILK UNION

No matter what you are celebrating! Made

from pure milk using sugar. Nandinipeda is a

delicious treat for the family. Store at room

tempreture approximately 7. Available in

250gms packs containing 10 pieces each. Self

life of 6 days at ambient temperatures .

INGREDIENTS: Milk solids, sugar.

Energy 411KCAL.

Total fat 17.1g.Vitamin A 196ug.

Cholesterol 51mg.

Carbohydrate 51.3g.

Proteins 12.9g.

Calcium 618mg.

MUFA 4.4g.

PUFA 0.5g

NANDINI GHEE:

A taste of purity. Nandini Ghee made from pure

butter. It is fresh and pure with a delicious flavor.

Hygienically manufactured and packed in a special

pack to retain the goodness of pure ghee. Available in

200ml, 500ml, 1000ml, sachet, 5 ltr tins and 15.0 k.g

tin.

Self life of 6 months at ambient temperatures.

NANDNI MYSORE PAK



14/54

HASSAN MILK UNION

Fresh and tasty, Nandini Mysore Pak is made

from quality Bengal Gram, Nandini Ghee and

Sgar. Its a delicious way to relish a sweet

moment Available in 250gms, 500gms,

ppcccontainer shrink packed to preserve

freshness. Can be kept for 7 days.

GULAB JAMON MIX

Great way to those soft and juicy jamoon

treats. At home! NandiniGulabJamoon Mix is

made from Nandini Skimmed milk powder,

maid, soji and Nandini special grade Ghee.

Available in 100gms and 200gms standy

pouch with a five layer foil lamination.

FLAVOURED MILK

Sterilized flavoured milk, a nutritious and

healthy drink and an all season wholesome

drink available in five different flavoures-

pineapple, rose, pista, badam, and natural

orange. Apart from refreshing energy.

Available in 200ml.



15/54

HASSAN MILK UNION

ICE CREAM

Nutritious, delicious creamy ice cream is

manufactured at ISO 9002/HACCp certified

mother dairy modern plant. The range includes

vanilla, strawberry, pineapple, mango,

chocholate, butter scotch, kesarpista, orange

and mango candies, chocobar and ball varities

vanilla..

Available in 500ml and 1ltr packs.

MILK POWDER

Enjoy the taste of pure milk! Powder made

from pure milk, processed and packed

hygienically.

Available in 50gms, 100gms, 200gms, 1 kg, and

25 kg pack.



16/54

HASSAN MILK UNION

CHAPTER-5

INDUSTRY PROFILE

Introduction

ORIGIN OF THE DAIRY INDUSTRY

The Indian Dairy Industry has made rapid progress since

independence. A large number of modern milk plans and product

factories have since been established. These organize dairies have been

successfully engaged in the routine commercial production ofpasteurized milk and milk products. India is the worlds largest milk

producer certified by International Dairy INDUSTRY. This is the reason

for the recognition of India as a dairy giant by the United Nations

Food & Agriculture Organization (FAO). India has become the worlds

No.1 milk producing country, with output in 1999-2000 (marketing year

ending March 2000) forecasted at 78 million tones. The annual rate of

growth in milk production in India is between 5-6 percent, against the

worlds at 1 percent . Indias annual milk production has more than

trebled in the last 30 years, rising from 21 million tons in 1968 to

an anticipated 80 million tons in 2001. This rapid growth and

modernization is largely credited to the contribution of dairy

cooperatives, under the Operation Flood (OF) Project, assisted by the

many multi-lateral agencies, including the European Union, the World

Bank and WFP (World Food Program me), In the Indian context of

poverty and malnutrition, milk as a special role to play for its many

nutritional advantages as well as providing supplementary income to

some 70 million farmers in over 5,00,000 remote villages.

Milk is the raw material of the dairy industry, which cannot be

created artificially and stored for long time. The term MILK MARKET



17/54

HASSAN MILK UNION

refers to the fluid wholed that is sold to the individuals usually for

direct consumption. The Dairy Industry has come up to the present

stage because of the National Dairy Development Board and Co-

operation of the Government. Effective and coordinated efforts of the

National Dairy Development Board lays down rules and regulations to

be followed by the various cooperatives milk societies. AMUL (Anand

milk union ltd) was a pioneer in starting a cooperative milk products

society and there after many cooperative societies where started.

World Bank also had given credit of Rs.78 crores for starting another

society has Amul in 1975.

In the year 1970 Operation fund gave another boost to thedairy industry by providing soft loans, subsidies, plans, etc These

made dairy industry flourish and the members of the cooperatives milk

producers society where able produce a large amount of milk. The

various activities sostarted continued under Operation Flood-II & III.

Operation Flood, launched in 1970, has been instrumental in helping

the farmers mould their own development. Thus, helping reach milk to

consumers in 700 towns and cities through a National Milk Grid. It

also helped eradicate the need for middlemen there by reducing the

seasonal price versions. As a result of the cooperatives structure the

whole exercise production and distribution of the milk and milk

products has become economically viable for farmers to undertake on

their own. In this manner the farmer himself can enjoy the fruits of

his own labour, instead of surrendering a majority of the profit to

corrupt middlemen. Operation Flood, which started in 1970, conclude

its 3rd phase in 1996 Operation Flood Hailed as Indias most

ambitions and highly successful rural development project has turned

dairing in to a cross economic activity in India. The World Bank for its

achievements has launched the 3rd and final phase of Operation

Flood , which culminated in April 1996 Operation Flood , has



18/54

HASSAN MILK UNION

helped knit ten million farmers members, spread over 70,000 villages

in to a catalyst of White Revolution in the country.

As India enters an era of economic reforms, agriculture,

particularly the livestock sector, is the position being a major growth

area. The fact that dairy could play more constructive role in the

promoting rural welfare and reducing poverty is increasingly being

recognized. For example, milk production alone involves more than 70

million producers, each raising one or two cows / buffaloes.

Company can assess from the present scenario that Dairy

Industry is one of the most important industry with a high level of

razor-edged competition. Competition is many due to the large numberbrands in the market and milk being a staple food to almost every

human being. Even today the leading nation is one, which is capable of

obtaining food in abundance for their people.

The Military Dairy Farms ( oldest in Allahabad, 1889), the

beginning salient features of the market of milk industry so far have

been: MARKET OF MILK

INDUSTRY IN INDIA:

In organized milk handling was made in India with the

Establishment of the following:

Handling of milk in co-operative Milk Union ( oldest: Allahabad,

1913 ) established all over the country on a small scale in the

early stages.

Pasteurization and bottling on a large scale for organized

distribution was started long distance refrigerator rail-transport of

milk from AMUL to Mumbai since 1945.

As Aare (1950), Worley (1961),Calcutta ( Haringhata, 1959), Delhi

(1959), Chennai (1963), etc.,



19/54

HASSAN MILK UNION

Establishment of milk plant under the five-year plan for dairy

development all over India. These were taken up with the dual

object of increasing the national level of milk consumption and

ensuring better return to the primary milk producer. Their main

aim was to produce more, better and cheaper milk.

Actual expenditure of the milk industry in Indias first three Five-year

plans:

Plan period ExpenditureI five year plan (1951-55) Rs. 7.8 CoresII five year plan (1955-61) Rs. 12 CoresIII five year plan (1961-66) Rs. 36.6 Cores

GROWTH & DEVELOPMENTOF THE INDUSTRY:

Until the year 1940, there was very little published information

of the method of preparation and use of these products. The credit

for the publication on the subject goes to Dr.W.B.Davis, the first

director of Dairy Research. Within a span of three or four decades

since Dr.Davis book arrival, considerable research had been conducted

at the National Dairy Research Institute and other places on

indigenous dairy produces.

Since then on the Dairy Industry had begun to grow at a rapid rate.

There has been a tremendous efforts put in by the various

organizations to assure good quality milk to the people and the saying

of All that is white is pure milk came to existence.

Providing proper infrastructurefacilities has increased the livestock

population. Some efforts have been made to study a few breeds and

taken up their genetic improvements through the selection mostly in

the institutional farms. Such studies will result in some scientific

information, which has been analyzed to these breeds and to develop

the method for their genetic improvements. The increasing demands

for foods of animals origin and other economic circumstances



20/54

HASSAN MILK UNION

Milk is rich in energy giving fats healthy giving vitamins body

buildings proteins and bone forming minerals which help build muscles

you need to throw ball or climb a tree. One 200 ml glass of milk

provides a power pack of nutrients a child needs daily. This is how a

glass of milk fulfills your daily requirements of nutrients in

percentage terms.

Sl.No Species Water Fat Protein Lactose Ash1 Cow 86.6 4.6 3.4 4.9 0.72 Buffaloes 84.2 6.6 3.9 5.2 0.8

Today India is the one of the global dairy industry. Karnataka

milk federation which most populer as KMF, evolved itself as a premierand most profitable dairy formers. Organization in the state of

Karnataka. It isesthablished in 1975 to implement project. The

company grew itself fast and as it spreads wings of new fund rural

econamic activity. Dairy all over the state, the agenesis of co-

operative body took the shape of KMF in 1983 entire the state 13

district co-operative milk union dairy activity organization of dairy co-

operative milk union executive the various parameters of dairy activity

organization of dairy co-operative, milk routes, processing of milk,

distribution of milks it main stay.

Background.

Milk is a nutritive beverage obtained from various animals and

consumed by humans. Most milk is obtained from cows, although milk

from goats, water buffalo, and reindeer is also used in various parts of

the world. In the United states, and in many industrialized countries,

raw cows milk is processed before it is consumed. During processing

the fat content of the milk is adjusted, various vitamins are added,

and potentially harmful bacteria are killed. In addition to being

consumed as a beverage, milk is also used to make butter, cream,



21/54

HASSAN MILK UNION

yogurt, cheese, and a variety of other products.

HISTORY OF HAMUL

The use of milk as a beverage probably began with the

domestication anima1s. Goats and sheep were domesticated in the area

now known as Iran and Afghanistan in about 9000 B.C., and by about

7000 B.C. cattle were being herded in what is now Turkey and parts in

Africa. The method for making cheese from milk was known to the

ancient Greeks and Romans, and the use of milk and milk products

spread throughout Europe in the following centuries.

One of the first glass milk bottles was patented in 1884 byDr. Henry Thatcher, after seeing a milkman making deliveries from an

open bucket into which a childs filthy rag doll had accidentally fallen.

By 1889, his Thatchers Common Sense Milk Jar had become an

industry standard. It was sealed with a waxed paper disc that was

pressed into a groove inside the bottles neck. The milk bottle, and the

regular morning arrival of the milkman, remained a part of American

life until the 1950s, when waxed paper cartons of milk began

appearing in markets.

In 1990, the annual production of milk in the United States

was about 148 billion lb(67.5 billion kg). This is equivalent to about 17.2

billion U.S. gallons (65.1 billion liters). About 37% of this was consumed

as fluid milk and cream, about 32% was converted into various

cheeses, about 17% was made into butter, and about 8% was used to

make ice cream and other frozen desserts. The remainder was sold as

dry milk, canned milk, and other milk products.

DAIRY INDUSTRY IN INDIA

Dairy enterprise is an important occupation of farmer. In

India near1y 70% of the people depend on agriculture. It is the



22/54

HASSAN MILK UNION

backbone of India. Dairy is linked with agriculture industry to a large

extent Animal husbandry in India is an essential part of agriculture. It is

mainly a rural occupation closely associated with agriculture.

DEVELOPMENT OF DAIRY INDUSTRY IN INDIA.

During the Pre-independence year there was no serious

stress given to dairy industry. In 1886 the Department of Defense of

the British Government established the dairy farms for the supply of

milk to the British troops in Allahabad. Later, in 1920 serious

steps were taken by Mr. William Smith, an expert in dairy forming to

improve the milk production. There was discrimination done to the

Indians hence this led to the rise of the first milk union in India. In

Lucknow in 1937 called the Lucknow milk producers Co-operative union

Ltd.

AMUL

A situation prevailed in the case of milk about Pre In

dependence; when to exploitation by middlemen had forced the milk

producers to sell milk at throw prices. The answer to such a situationwas found in developing a system that enables milk producers to own

and operate not only their processing facility, but also the inputs,

delivery machinery, and the marketing of finished products.

The integrated approach first proved very successful in

Kaira-the AMUL in and through the Operation Flood Programme, aimed

to establish similar farmers organizations in 18 districts in the country.

The Programme, when implemented did face some preliminary problems,

but These were overcome, so much so that when the IBRD and World

Bank came forward to finance dairy projects in Karnataka, Rajasthan

and Madhya Pradesh. The results were that 12 milk producers

cooperative unions were established. Based on the success of these

30 unions; bodies owned by the farmers themselves. The other phase of



23/54

HASSAN MILK UNION

dairy development and operation flood being implemented to bring the

total number of such district unions to 155, and cover some 10

million farmers. The success of these 30 unions have further

demonstrated that problems can best solved if the agency

implementing the programs is owned and operated by the

producers themselves, who employ the best professionals that the

responsibility of such an organization is not only to guarantee a

remunerative market for the rurally produced commodity by its

member producers, hut also guarantees a package of input for

enhancing production (milk) and ploughs back the profit for

further development. Again, in the case of milk, since marketing ofthe product was largely controlled by middlemen/trade/cattle

keepers/etc., the organized dairy was not in a position to pay a

better price to the milk producers. Market intervention was

therefore required to enable these dairies to supply milk to the

consumers at reasonable prices. This was the first time that food

aid skimmed milk powder, and butter oil in this case-was used

to prime the pump of the modern dairies in four metropolitan

cities (Calcutta, Bombay, Delhi and Madras), and permit them to

demand on all much large scale. The funds generated through

the sale of skimmed milk powder and butter oil were used to

build up farmers organizations in the milk sheds those supplies

to these metropolitan cities.

World Bank came forward to finance dairy projects in

Kamataka, Rajasthan and Madhya Pradesh. The results were that 12

milk producers cooperative unions were established. Based on the

success of these 30 unions; bodies owned by the farmers

themselves. The other phase of dairy development and operation

flood being implemented to brig the total number of such

district unions to 155, and cover some 10 million farmers.



24/54

HASSAN MILK UNION

The success of these 30 unions have further

demonstrated that problems can best solved if the agency

implementing the programme is owned and operated by the

producers themselves, who employ the best professionals that

the responsibility of such an organization is not only to

guarantee a remunerative market for the rurally produced

commodity by its member producers, but also guarantees a

package of input for enhancing production (milk) and ploughs back

the profit for further development. Again, in the case of milk,

since marketing of the product was largely controlled by

middlemen/trade/cattle keepers/etc., the organized dairy was not in aposition to pay a better price to the milk Producers. Market

intervention was therefore required enable these dairies to supply

milk to the consumers at reasonable prices. This was the first

time that food aid skimmed milk powder, and butter oil in this

case-was used to prime the pump of the modern dairies in four

metropolitan cities (Calcutta, Bombay, Delhi and Madras), and permit

them to demand on all much large scale. The funds generated

through the sale of skimmed milk powder, and butter oil were

used to build up farmers organizations in the milk sheds those

supplies to these metropolitan cities.

The dairy and Animal Husbandry received serious attention

after the independence. There were lots many of progressive steps

taken by the government through five year plans. This led to the

formation of National Dairy Development Board in 1965 & thus in

1970 he decided to Bring a White Revolution throughout the

country, initially 10 states were selected were for this purpose

excluding Karnataka.

In Kamataka in 1974 an integrated project was launched

to restructure and reorganize the dairy industry on Co-operative



25/54

HASSAN MILK UNION

principle of AMUL and to lay foundation for new direction in

dairy industry.

KARNATAKA MILK FEDERATION.

The first dairy in Karnataka was started in Kudige in

Kodagu district in 1955, further in June 1974; an integrated project

was launched in Kamataka to restructure and reorganize the

dairy industry on the co-operative principle and to lay foundation

for a new direction in dairy development.

In 1975, the World Bank aided dairy development was

initiated. The present Karnataka Milk Federation (KMF) came into

existence in 1984-as a result of merging of Karnataka Milk Dairy

Development Co-operation, small co-operatives and Karnataka Milk

Production Development and loose vendors.

KMF is the apex Body in Karnataka representing Dairy

Cooperatives. It is the third largest dairy co-operative amongst

the dairy co-operatives in the country.

To impart training, institutes at Bangalore andregional training intitute at Mysore functioning. Three nitrogen

plants are been set-up to supply nitrogen, which is used for

Refrigeration purpose. Three diagnostic centers have been set-up for

monitoring diseases.

Objectives:

Providing assured and remunerative market for all the milk

produced by the farmer members.

Providing hygienic milk to urban consumers.

To build village level institutions in co-operative sector to

manage the dairy activities. To ensure provision of milk



26/54

HASSAN MILK UNION

production inputs, processing facilities and dissemination of

know-how.

To facilitate rural development by providing opportunities for

self-employment at village level, preventing migration to

urban areas, etc.

FUNCTIONS OF KMF:

Co-ordination of activities between the unions.

Developing the markets for the increasing in milk production.

To make the brand Nadine as a house hold name.

Excellence in quality is to be maintained to lay a solid

foundation for wide Spread acceptance of Nadine products.

To increase the market share of Nadine

UNITS OF KMF:

KMF has the following Units functioning directly under

its control;

Mother Dairy, Yelahanka, Bangalore.

Nadine Milk Products, KMF Complex, Bangalore.

Cattle Feed Plants at Rajanukunte/Gubbi/Dharward/Hassan.

Nadine Sperm Station at Hessaraghatta

Pouch Film Plant at MunnekolaluMarathhalli.

Central Training Institute at KMF Complex, Bangalore

Quality Control Lab at KMF Complex, Bangalore.

KMF has 13 milk unions throughout the state which procure

milk from primary dairy cooperative societies (DCS) and

distribute milk to the consumers in various towns/cities/rural

markets in Karnataka



27/54

HASSAN MILK UNION

While the marketing of all the milk products is organized

by KMF, both within and outside the state, all the milk and milk

product are sold under a common brand name NANDINI|

CHAPTER-6

COMPANY POSITION IN THE MARKET



28/54

HASSAN MILK UNION


PROFIT AND LOSS ACCOUNT FOR THE YEAR END 2011-2012

PRARTICULARS 2010-2011 2011-2012

Salary & other benefits 25789758.75 26394685.71

Administrative expenses 20049643.64 11263848.73

Rent,Rates& Taxes 854372.00 798670.63

Selling & Distribution expenses 35299686.92 40467861.37

Interest and Bank charges 1089602.89 14403213.29

P & I services 9006954.88 937448.01

Vehicle Repairs & maintenance 2879059.00 14403213.29Depreciation 19422241.70 3267023.22

Provision for Bad &Doubtfulldepts - 2070.00

Provision for taxiation 10850000.00 146837665.99

Net profit TRFD 25550334.54 20366603.73

TOTAL 36400334.54 30270630.73

Gross profit TFRD from Trading account 129913832.42 120241884.49

Other income 16957460.47 14904530.25

Interest on loans & advances 183271627.43 11691251.25

TOTAL 150791654.59 146837665.99


29/54

HASSAN MILK UNION

The karnataka milk fedration having a brand of NANDINI. The

KMF having the the market share is according to company balance sheet and


BALANCE SHEET FOR THE YEAR END 2011-2012

PARTICULAR 2010-2011 2011-2012

Share capital 85668000.00 97212000.00Share suspence 2354225.08 858291.37

Dep.& other funds 206830261.33 247210800.56

Profit & Loss a/c 25550334.54 20360603.73

Loans 21918866.98 18721214.00

Grants & Subsidies 61165358.21 53404008.07

Current liabilities 191870695.60 483746086.59

Provisions 30580119.93 40225247.04

TOTAL 625937861.67 961738251.36

Assets

Cash on hand 97132.10 160085.00

Cash at bank 77903046.97 40694943.25

Investment 99419304.33 192532859.00

Fixed assets 271992304.92 339054546.76

Current assets 124881275.67 142511715.65

Loans & advances & Deposits - 26250.00

Sundry debtors 15210474.31 29136783.54

Audit objectives 670350.02 362737.97

Stock on hand 35763973.35 217334330.20

Profits & loss a/c _

TOTAL 625937861.67 961814251.37


30/54

HASSAN MILK UNION

company records is

85% in the market and the NANDINI products are top position in the market.

CHAPTER-7

CORPORATE SOCIAL RESPONSIBILITIES

ACTIVITIE OF HASSAN MILK UNION:

A. Organization of Dairy Co-Operative Societies :

As at the end of July- 2012, 1332 societies have been registered

of which 1252 are functional. Out of functional societies 449 are women

societies 199 step women societies which are functioning to enhance the



31/54

HASSAN MILK UNION

social and economical condition of women.

B. Membership Enrolment :

As on 31st July 2012, 189417 members have been enrolled. Out of

the total 76289 are small farmers, 54889 are marginal farmers, 24443 are

agriculture labors and 33796 are other big farmers, 13010 belongs to SC

members, 4619 belongs to ST members. 70801 members are women.

C. Milk Procurement Activities:

The present average milk procurement from 1252 milk societies

is around 619977 kgs/day. During the month of July-12 the averageprocurement /DCS/day is 495 kgs and the average transportation cost per kg

of milk procurement is 32 paisa. The average fat is 4.05% and average SNF

is 8.50 %.

Input Activities :

a. Veterinary Facility :

It is covering all societies and giving veterinary facility.

b. Artificial Insemination :

To improve the breeding facility there are 18 single AI centers and 91

Cluster AI centers working in the union area. These centers covered around

84% of the DCS. An average of 30,000 inseminations is carrying out every

month. 4200 male cows and 4300 female total 8500 cross breed cows have

been born during July-2012.

c. Feeds and Fodder :

The union is guiding the farmers and the producers at the village level

in growing moderninised fodder. Ex. union is supplying C01, C02 and naepier

roots and SSG seeds, cow pea seeds and seasonal seeds to the producers.



32/54

HASSAN MILK UNION

The union is also arranging straw treatment demonstration. The union is

supplying around 4000 metric tones of cattle feeds and an average 15000

kgs of mineral mixtures to the society members. Nearly 98% of the

functional societies have been covered under cattle feed sales.

d. Training facilities :

Training will be given to the milk society secretaries, testers and

management committee members. DAM (dairy animal management) is given

to the producers. This training is given in central training institutes, Mysore

owned and managed by KMF Bangalore.

Other programmes :

a. Step programme :

Under this, women members have been enlightened with education,

nutrition, legal matters. SHG (self help group) the main purpose of step

programme is to provide better socio-economic status to the women

members

b. Yashashwini health programme :

Under this scheme, those who have become members of this scheme

will get medical benefits like operation charges.

c. Total quality management (TQM) :

The union is encouraging clean milk production programme at

village level. The union has obtained ISO 9001:2000 certifications.

There are 19 bulk milk coolers and 108 automatic milk collection

centers which are functioning in the milk societies.



33/54

HASSAN MILK UNION

CHAPTER-8

FUTURE PROSPECTS FOR THE COMPANY (Competitive Edge )

COMPETITION:

The Nandini milk is facing lot of competition in the market the

prime competitors areprivate players like,

Krishna.



34/54

HASSAN MILK UNION

Arogya.

Spurti.

1. INCREASING THE AVAILABILTY OF NANDINI MILK AND

PRODUCTS THROUGH OUT DAY IN THE MARKET:

a) By expanding the retail market in the union area.

1) Identifying the uncoverd areas of distribution and appointing new

retailers in such areas to expand the local market.

2) Introduction of Adhoc day route exclusively for Milk products

distribution in the union area.

3) Opening of 4 new Nandini Milk parlour at Alur,Somvarpet,Arakalgud.

4) OpeningofNandini Milk parlour at Birur Railway Station.

b) Strengthening of existing Milk parlours,Depots and Day

counters:

Particulers Hassan C.K.M Coorg Total

Milk parlours 17 3 5 25

Day counters 1 3 5 09

Depots 4 4 4 12

Retailers 201 179 275 655

There are totally 655 retailers,25 milk parlours,09-day counters and 12

depots operating in the union area. It is decided to stengthen these existing

outlets through building up of cold chain facilities by providing Bottle coolers

to retailers at the rate of 50% cost and free supply of insulated boxes and



35/54

HASSAN MILK UNION

introduction of insulated Transport vehicles to the door step of retailers and

extended hours of milk supply .

2. ENHANCING EFFECTIVENESS OF CONSUMER AWARENESS

PROGRAMMES

To persuade consumers,who are purchasing loose milk, or

Competitors milk,to purchase Nandini milk.This objective is most suitable

for our Union since their market share is less

To create awareness among existing and prospective consumers

about:-

a) The Organization.(HCMPSULtd).

b) The Quality products and Services available.

c) Dairy plant activities-hygienic milk handaling practices of

Nandini Vis a Vis loose milk.

d) Health hazards of consummingadultered milk.

e) Quality and hygienic aspects of sachet milk and milk products.

f) Dairy visit by School children, consumers and mahilamandals.

g) Education Programmes on Milk and Health at schools and

public places.

h) Organization Milk testing programmes at public places.

3. CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY

PROBLEMS:

A core team constituting of officers from plant, quality Solving the

problems control,marketing have been formed to implement the strategies

of SMP for implementation.This team would sit every day for 15 minutes with

Manager (dairy) and thrash out problems faced by the marketing staff

Problems noticed and actions intiated are to be recorded every day. And

appraise the M.D and conduct review meeting once in a month.



36/54

HASSAN MILK UNION

4. SALES PROMOTION ACTIVITIES:

Sales promotion is a marketing activity that provide extra value or

incentive to sales force, distributors,and the ultimate consumers and can

stimulate immediate sales.

(a) Group Insurance and is continued till 2014:

The proposal of providing Group Insurance facility to retailers which is

in existence and is continued during 2012-13 also.

(b) Brand Advertisement,Hoardings flex adds,Insulated Vehicle and Wall

paintings, Radio programmes, T.V ads, and Awareness programmes will

be

continued during 2012-13 also.

(c) Supplying posters, Flex Boards, Glow sign Boards, Tarpaulin bags to

Retailers

and organizing retailers tour progamme, Training programmes etc..

(d) Providing Bottle coolers and stabalizers at 50% Subsidy to the retailerswho

have increased the Sales at least by 20% compared to previous years

sales.

5. MOTIVATING THE CHANNEL MEMBERS.

A system to motivate and educate the channel members has been pn

posed for increasing the sales. A systematic awareness campaign would be

organized and all :he Nadine retailers will be contacted. This is planned by

meeting them regularly and invitng suggestion/feedback from them on a

regular basis. Retailer meeting will be conducted nce in six months. The

confidence of retailer to be obtained by service and by attending to their

routine problems. Rewarding the best performing retailers and his delivery



37/54

HASSAN MILK UNION

boy for promote service is planned. Channel member will be oriented with

educational tours to the neigiboring unions training programmesso as to

acquaint with market devel.

6.ELISTING CONSUMERS FEED BACK FOR QUALITY ASSURANCE.

By preparing a set of questionnaire and during the feed back from th

customers. Will get as information about customers perception on Nadine

milk and milk pr ducts, quality packing and pricing etc.

By doing this we will get the results from the customers in case if the

-e are any problem we can rectify ,we can do this by pulling few question to

the customers a king about the quality pries shelf life packing satisfaction

etc. and also get the feed back a ab )ut competitors brands in the market.

7. CREATION OF GRIEVANCE REDRESSED CELL:

Since the market forces are driven by the milk union would

initiate focusing towards customer needs. In this direction, the

customers of Nandind to privilege by the kind of service provided to

them. Focus on consumer orientation could be established over period

of time. This system to be implemented with the help following

activities.

A Separate telephone line to the marketing, section of Hassan

and kudige dairy would be provided for benefiting channel members.

Further, the telephone no contact persons name to be published

the leading local dairy news papers and circulated to all retailers day

couters, depose parlors and govt institution.

1. The complaints to be addressed immediately and would be

rectified with in 24 hours.

2. Timing for placing milk and milk products indent would be

increased.(5.30pm to 8 am)



38/54

HASSAN MILK UNION

If any complaint regarding quality and quantity is received, the action

to be taken by the mark / plants section. These sections have for to

be given certain delegation powers for accepting spoiled milk, leakage

milk due to machinery problems and any other consumers complaint

by attending them through systematic approach and recording the

same for MD approval.

Any product brought by either marketing field staff or any team

members or any retailers for any manufacturing defects the

compliments needs to be addressed immediately. Practice of running

between security, marketing department plant abd quality department

as to be avoided. A system of regresting the complaints and security

to acknowledge the product which can be checked by quality

department and upon gunnies, the product as to be replaced at spot

or is least by next day.

Each full staff (marketing) opening in there areas should bring

at least 1 milk sachet sample of all brands from the field once in a

month dairy and them checked for quality specification. The action

taken should be informed to the concerned retailers should be discuss

will in time writing. And this quality check with the retailers should be

discussed in the regular marketing section marketing.

8. CONSTITUTING EFFECTIVE REPLACEMENT / LEAKAGE POLICY.

Though there are no foolproof methods to solve this problem

seniors effort have to be made which should be important by and

large should be acceptable to all the channel members. It is very true

that the monitory loss suffered by the retailers managing the Leakey

packet is quick high as compared to the margins they get from

selling a pocket of milk. It is also very difficult to avoided leakage



39/54

HASSAN MILK UNION

since the distribution is to be made through bad roads others

inconvenience circumstances.

However a systematic approach should be applied to the leakage

problem at the union level to ensure the milk pouches delivered at the

dairy dock at the leading time are not leaky and soundly packed. This

would be possible by implementing strict quality parameters at the

packing operation. There should be a proper monitoring mechanism at

the cold store and level during dispatch to ensure the supply of

unleakly pouches to the market. The following measures are planned

to over come the leaky problem.

Film quality testing programs.

Focus on discussion.

Proper maintenance and maintaining of packing machine.

Storing and required temperature before dispatch.

Talking proper care during transport to avoided damage.

Replacement of old cards.

HCMPSULtd ACTION PLAN FOR THE YEAR 2012-13

PRESENT SCENARIO

S.NO PARTICULARS HASSAN CKM COORG TOTAL

1 Population 446966 383049 317933 1147948

2 Estimated

Demand in LPD

89393 83667 95380 268440

3 Projected sale

of milk

50794 46197 53304 150295

4 Present sale of

milk in

LPD(2011-11)

42340 38477 44405 125222



40/54

HASSAN MILK UNION

5 Loose milk sale

in LPD

17879 10648 9538 38065

6 Competitor

milk sales in

LPD

3950 4000 1900 9650

7 Market share

of Nandini milk

47.36 45.99 46.56 46.64

8 Market share

of competitors

milk

4.42 4.78 1.99 3.59

9 Market share

of Loose milk

20.0 12.7 10.0 14.18

Balance share is Considered as Utilisation for Self Consumption.

Note:

1. Population figures as per the year 2001 census (urban) and annual

projection.on

decinnial growth percentage.

2. Percapita consumption of milk:-

a) Hassan district : 200ml/day

b) Chikkamagalur district:

Chikkamagalur,Kadur,andTarikere : 200ml/da

Shingeri,Koppa,mudigere and N.R.pura : 250ml/day

c) Coorg district : 300ml/day

PRODUCTION ASPECTES OF THE HAMUL



41/54

HASSAN MILK UNION

STRUCTURE OF THE PRODUCTION DEPARTMENT

In the organization the production department is the key for all

activities.The main raw material is milk which is procured as staked


MANAGER(P&L)

HelppersClerks

Extension

Officer

Assistant

Manager

Deputy

Manager

Procurement

Wing

Technical

Inputwing

Deputy

Manager

Assistant

Manager

Clerks


42/54

HASSAN MILK UNION

earlier. Every day it is planned for the disposal of incoming raw milk

as per the availability and indent from the consumers.

Production is the conversion of raw material into finished

product. AMUL production department is well planned and adequately

equipped manufacturing set up where the entire necessary

infrastructure is available.

In AMUL the raw milk is processed to from the good

quality of milk. During the processing, the milk is differentiated

depending on the contract of FAT and SNF.

(Solid not fat).

PROCESS

Once the milk is accepted the milk is chill to 4 c and

pumped into milk silos a bulk check is done and the milk as

processed as per the need.

Here pasteurization is done by heating the milk to 72 c

maintain that temperature for 15 seconds and chilled 4 c. this is called

as pasteurization. Once the pasteurization is done the milk is sent forretail packing of 500 ml, 1000ml sachets.

This is sachets or crated of (packed) in 12 ltr plastic crates

and in the cold at 4

TEST REASON

Temperature Be below 4 degree.

Clot on Boiling If mill curdles soon after billing milk is

rejected.Acidity Test To test the extent of acidity.(Which milk

having 0.13 1.17 percent of acidity that is

good milk).



43/54

HASSAN MILK UNION

Alcohol Test To check the heat stability of milk.

Lactometer To check the density of milk.

Fat Test Percentage of fat determined.

SNF Test Percentage of SNF determined for pricing.

SNF=CLR+FAT/4+0.35(consent)

Districts and also to other dairies in the state and outside.

Dairies & Processing unit Capacities1. Hassan 1.2 Lakh lters/day (Expand upto 3

Lakh liters/day)2. Kudige in Coorg District 50,000 liters/day

SL.NO Chilling Centers Capacities

1. Birur in Chikkamagalore

District

20,000 liters/day

2. Holenarsipura in Hassan District 100000 liters/day

3. Channarayappttana 1,00,000

liters/day

Hassan milk union is carrying business of producing and

marketing milk and milk products, such as peda, curd, ghee, Butter milk.

Hassan milk union procuring milk from rural areas and providing input

activities to dairy co-operative societies like artificial insemination, supply

cattle feed, animal health care programs for the uplifment of the

producers.



44/54

HASSAN MILK UNION

INFORMATION ABOUT DAIRY CENTERS:

S.N

O

PLACE INSTALLED

CAPACITY

liters/day

CAPACITY

UTILIZATION

litres/day

PERCENTAGE

OF

CAPACITY

UTILIZATION[%]

1 Hassan Dairy 1,20,000 2,94,098 245.08

2 Kudige Dairy 50,000 35,325 70.65

3 Holenashipura

Chilling centre

1,00,000 1,05,128 105.12

4 Birur Chilling

centre

20,000 57,516 287.58

5 Channarayapatta

na Chilling

centre

1,00,000 1,32,903 132.90

STORAGE OF MILK:



45/54

HASSAN MILK UNION

SALE OF MILK:

S.NO YEAR AVERAGE DAILY

SALE

OF MILK

COMPARE TO LAST YEAR

PERCENTAGE

OF INCREASE

[%]

1 2007-08 90,186 14.65

2 2008-09 95,589 7.09

3 2009-10 1,09,578 13.45

4 2010-11 1,14,879 4.83

5 2011-12 1,25,197 8.98

6 2012-13[up to

jan]

32,095 5.51


S.NO YEAR AVERAGE DAILY

STORAGE OF MILK

[in kgs]

COMPARE TO LAST YEAR

PERCENTAGE OF

INCREASE

[%]

1 2007-08 2,68,417 11.61

2 2008-09 3,33,718 24.32

3 2009-09 3,86,462 15.80

4 2009-10 4,02,067 4.03

5 2010-11 4,76,771 18.58

6 2011-12 5,98,245 25.48


46/54

HASSAN MILK UNION

Learning Experience

During the course of study the application of managerial

theories in to practice has been understood. It helped to link the

theories, techniques and practice of management with different

activities of the organization. HASSAN MILK UNION. Has a wide range of

products, this plant is dealing with milk product.

During the period the Production process and the

systematic layout of the machineries was learnt. The plant is

systematically designed so that the production process is carried out

without any security are systematically arranged.

in the in that its a memorable movement.

COMPANY AT GLANCE:

Name : HAMUL.

Establishment year : 4th June 1975.

Date of registration : Day/ R.C.S/ 3657/ 76-77 Date-30/3/1977

Registered office : Karnataka milk federation (KMF) KMF hassan

dairy circle, hassan

Area of operation : Hassan, Kodagu, Chikkamagalur.

Location : NH48, Industrial area, B.M.Road, Hassan.

Customers :Agents, Wholesalres, Local consumers.



47/54

HASSAN MILK UNION

Main dealings : Milk and Milk products.

Suppliers : Members andnon members of milk products, co-

Operative Societies.

Area coverd : 27 acres.

Brand name :NANDINI:



48/54

HASSAN MILK UNION



49/54

HASSAN MILK UNION



50/54

HASSAN MILK UNION



51/54

HASSAN MILK UNION



52/54

HASSAN MILK UNION



53/54

HASSAN MILK UNION

BIBILIOGRAPHY



54/54

HASSAN MILK UNION

1. Books

UPENDRA KACHRU (2007).Production andopetation management.

Publisher: ANURAG JAIN FOR EXCEL BOOKS.

S.K.BHATIA(2006) Human resources management.

Publisher: DEEP ANDDEEP PUBLICATION PVT.LTD.

2.Website.

www.google.com

www.kmfnandini.com

Documents

It Project Manju