Amy BAMUL

EXECUTIVE SUMMARY

BAMUL is India’s no.1 milk diary. It processes the milk and supplies milk all over the Bengaluru city. It also gives chance to students of BBA, B.Com, M.Com, MBA etc. to do their implant study and project report on their company. It consists of departments such as Marketing, Finance, Production, Purchase, Administration, Quality control etc which is well maintained and well organized. In BAMUL, Purchase department places the tenders for purchase of raw materials through advertisements and then selects the suppliers and purchases the raw materials from suppliers and sends it to stores department for storage. Marketing department also has a main part in selecting the suppliers for the purchase of materials. In BAMUL, Production department assembles the parts for the production of finished goods according to the supply of raw materials. The finished goods are tested in quality control department and then stored in stores. In BAMUL, Marketing department carries all the marketing and promotional strategies to market their product. It has a strong and well maintained distributing channel, with the help of which it supplies its products to consumers on time. In BAMUL, Finance department does all the billing and auditing work, maintains the accounts of the suppliers and other members properly. Budget is prepared regularly. It calculates the salaries of employees and the admin department makes the payment and so on. In BAMUL, Human resource department carries the functions like training and development of the employees of the company, preparing human resource planning, recruitment and selection etc.

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INTRODUCTION TO STUDY As it is a part of our 3rd semester BBA, the study involves the organizational structure and functioning of various departments. It explains in practical about the functioning of various departments such as Purchase department, Finance department, Production, Marketing, Human resources and so on. It gives an exposure of Corporate world. Study in BAMUL explains the entire procedure of Milk processing till the stage of selling to the final customer.

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INDUSTRY PROFILE The highest milk producer in the entire globe – India boasts of that status. India is otherwise known as the ‘Oyster’ of the global dairy industry, with opportunities galore to the entrepreneurs globally. Anyone might want to capitalize on the largest and fastest growing milk and mil products' market. The dairy industry in India has been witnessing rapid growth. The liberalized economy provides more opportunities for MNCs and foreign investors to release the full potential of this industry. The main aim of the Indian dairy industry is only to better manage the national resources to enhance milk production and upgrade milk processing using innovative technologies. Potential for investment in the dairy industry Some areas of Indian dairy industry can be toned up by the evocation of differentiated technologies and equipment from overseas. These include: 1. Raw milk handling: The raw milk handling needs to be elevated in terms of physicochemical and microbiological properties of the milk in a combined manner. The use of clarification and bactofugation in raw milk processing can aid better the quality of the milk products. 2. Milk processing: Better operational ratios are required to amend the yields and abridge wastage, lessen fat/protein losses during processing, control production costs, save energy and broaden shelf life. The adoption of GMP (Good Manufacturing Practices) and HACCP (Hazard Analysis Critical Control Points) would help produce milk products adapting to the international standards. 3. Packaging: Another area that can be improved is the range of packing machines for the manufacture of butter, cheese and alike. Better packaging can assist in retaining the nutritive value of products packed and thus broaden the shelf life. A cold chain distribution system is required for proper storage and transfer of dairy products. 4. Value-added products: There's vast scope for value-added products like desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets to capture the dairy market in India.

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The Indian dairy industry has aimed at better management of the national resources to enhance milk production and upgrade milk processing involving new innovative technologies. Multinational dairy giants can also make their foray in the Indian dairy market in this challenging scenario and create a win-win situation for both. India's Milk Product Mix Fluid Milk Ghee Butter Curd Khoa (Partially Dehydrated Condensed Milk) Milk Powders, including IMF Paneer & Chhana (Cottage Cheese) Others, including Cream, Ice Cream

46.0% 27.5% 6.5% 7.0% 6.5% 3.5% 2.0% 1.0%

Overview of the Indian Dairy Sector •

The country is the largest milk producer all over the world, around 100 million MT

•

Value of output amounted to Rs. 1179 billion (in 2004-05) (Approximately equals combined output of paddy and wheat!!)

•

1/5thof the world bovine population

•

Milch animals (45% indigenous cattle, 55 % buffaloes, and 10% cross bred cows)

•

Immensely low productivity, around 1000 kg/year (world average 2038 kg/year)

•

Large no. of unproductive animals, low genetic potency, poor nutrition and lack of services are the main factors for the low productivity

•

There are different regions – developed, average, below average (eastern states of Orissa, Bihar and NE region) in the dairy industry.

Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body in Karnataka representing Dairy Farmers' Co-operatives. It is the second largest dairy cooperative amongst the dairy cooperatives in the country. In South India it stands first in

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terms of procurement as well as sales. One of the core functions of the Federation is marketing of Milk and Milk Products. The Brand 'NANDINI' is the household name for Pure and Fresh milk and milk products. KMF has 13 Milk Unions throughout the State which procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk to the consumers in various Towns/Cities/Rural markets in Karnataka. The first ever World Bank funded Dairy Development Program in the country started in Karnataka with the organization of Village Level Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from World Bank, Operation Flood II & III. The dairy co-operatives were established under the ANAND pattern in a three tier structure with the Village Level Dairy Co-operatives forming the base level, the District Level Milk Unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the growth of the sector at the State level.

Coordination of activities among the Unions and developing market for Milk and Milk products is the responsibility of KMF. Marketing Milk in the respective jurisdiction is organized by the respective Milk Unions. Surplus/deficit of liquid milk among the m Products is organized by KMF, both within and outside the State, all the Milk and Milk

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products are sold under a common brand name NANDINI. Ember Milk Unions is monitored by the Federation. While the marketing of all the Milk.

GROWTH PROCESS The growth over the years and activities undertaken by KMF is summarized briefly hereunder: Dairy Co-operatives Membership Milk Procurement Milk Sales Cattle Feed Consumed Daily Payment to Farmers Turnover

1976-77 Nos 416 Nos 37000 Kgs/day 50000 Lts/day 95050 Kgs/DCS 220 Rs.Lakhs 0.90 Rs.Crores

2009-2010(Upto Jul'09) 11542 2018788 3668314 / Peak Proc.40.41 LKPD 2377364 / Curds:2.27LKPD 3046 449 3135.00

COMPANY PROFILE

The Bangalore Milk Union Ltd., (Bamul) was established during 1975 under Operation Flood II by keeping “Amul” as its Roll Model. At present Bamul has Bangalore Urban, Bangalore Rural & Ramanagaram Districts of Karnataka State as its area of operation for Milk Procurement and selling Milk in part of Bruhath Bangalore Mahanagara Palika

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(BBMP) area. Since its inception the Union is constantly striving further for dairy development and marketing activities in its milk shed area.

OBJECTIVES •

To organize Dairy Co-operative Societies at Village level and dissemination of information like good dairy animal husbandry and breeding practices & Clean Milk Production through Extension Services.

•

To provide assured market & remunerative price for the milk produced by the farmer members of the co-operative societies.

•

To provide technical input services like veterinary services, artificial insemination, supply of balanced cattle feed & Fodder seed materials etc., to milk producers.

•

To facilitate rural development by providing opportunities for self-employment at village level, thereby preventing migration to urban areas, introducing cash economy & opportunity for steady income.

•

To provide quality Milk and milk products to urban consumers at competitive prices.

VISION AND MISSION STATEMENTS VISION: “WISH TO GROW INTO A MODEL MILK CO-OPERATIVE”.

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Bangalore Milk Union Limited(BAMUL) is the biggest milk union in South India, fully owned and managed by milk producers of Bangalore Rural and Bangalore Urban districts of Karnataka state. Since its inception in 1975, the union is constantly striving to further the diary development and marketing activities in its milk shed area. MISSION: This co-operative milk producer’s organization is to eliminate middle man and organize institution owned by the milk producers themselves, by employing professionals, achieve economies of scale and to ensure maximum returns to the milk producers, at the same time providing wholesome milk at reasonable price to the urban consumers ultimately, the complex network of co-operative should build a strong bridge between masses of rural producers and millions of urban consumers and achieve a socio-economic revolution in the vicinity of the territory.

BAMUL at Glance An ISO-22000:2005 & ISO-9001:2000 Certified Procurement & Input Inhabited Villages Milk Producer Members Dairy Co-operative Societies Milk Procurement Routes + BMC Routes

2,611 3,25,854 1,708 93+13

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Artificial Insemination Centers

Single

259

Cluster Processing Plants Bangalore Dairy

Capacity

96 Procurement

6,00,000 LPD

7,30,125 KPD

Anekal Chilling Center

60,000 LPD

57,075 KPD

Byrapatna Chilling Center

60,000 LPD

96,508 KPD

Doddaballapura Chilling Center

60,000 LPD

78,971 KPD

1,50,000 LPD

1,25,965 KPD

60,000 LPD

93,712 KPD

Vijayapura Chilling Center

1,00,000 LPD

88,608 KPD

Kanakapura Chilling Center

60,000 LPD

86,699 KPD

1,46,000 LPD

1,02,058 KPD

Hosakote Chilling Center Solur Chilling Center

Bulk Milk Coolers

Marketing & Sales Number of Distribution Routes

196

Retailers

1067

Whole Sale Dealers

35

Franchisee Outlets

30

Milk Parlors

29

Transporter Cum Distributor

14 Finance 2007-08

Total Share Capital (Rs in Lakhs) Annual Turnover (2008-09) (Rs in Lakhs) Net Profit (2008-09) (Rs in Lakhs)

1174.49 50,824.00 159.00

BACKGROUND On January 1st 1958 a pilot scheme to cater the Bangalore Milk Market, Department of Animal Husbandry, Government of Karnataka was started Milk processing facilities & Veterinary Hospitals at National Dairy Research Institute (NDRI). Later in 1962, The Bangalore Milk Supply Scheme came into existence as an independent body. With the great efforts by the then Hon’ble Minister for Revenue & Dairying, Government of Mysore Sri M V Krishnappa, A joint venture of UNICEF, Government of India & Government of

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Mysore was dedicated Bangalore Dairy to the people of Karnataka State on 23rd January 1965 by the then Hon’ble Prime Minister Late Sri Lal Bahadhur Shastriji. The Bangalore Dairy scattering over an area of 52 Acres of land, the Dairy had an initial capacity to process 50,000 liters of milk per day. Bangalore Dairy underwent a structural change in December 1975, handed over to Karnataka Dairy Development Corporation (KDDC). Rural Milk Scheme of Mysore, Hassan & Kudige Districts was started under Operation Flood-II and then transferred to Karnataka Milk Federation (KMF) in May 1984 as a successor of KDDC. To cater to the growing demand for milk by the consumers of Bangalore City, the capacity was increased to 1.5 lakh liters per day under the Operation Flood-II during 1981 and later increased to 3.5 lakh liters per day under Operation FloodIII during 1994. As per the policies of the National Dairy Development Board (NDDB), Bangalore Dairy was handed over to Bangalore Milk Union Ltd., (Bamul) on 1 st September 1988. The Union is capable of processing the entire milk procured, by timely implementation of several infrastructure projects like commissioning of New Mega Dairy state-of-the-art technology with a processing Capacity of 6.0 Lakh liters per day, new chilling centers, renovation of product block etc., The milk shed area of Bamul comprises of 2611 revenue villages. As of now the Union has organized 1696 Dairy Co-operative Societies (DCS) in 2,074 villages, thereby covering 78% of the total villages in these two districts. In these DCSs, there are 3,27,176 milk producer members. Among them 99,603 members are women and 59,112 members belong to Schedule Caste and Schedule Tribes. The philosophy of this co-operative milk producers’ organization is to eliminate middlemen and organize institutions owned and managed by milk producers, by employing professionals. Achieve economies of scale of rural milk producers by ensuring maximum returns and at the same time providing wholesome milk at reasonable price to urban consumers. Ultimately, the complex network of co-operative organisation should build a

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strong bridge between masses of rural producers and millions of urban consumers & achieve a socio-economic revolution in the village community. Bamul has been registered under MMPO by Central Registration Authority. Today, the Union has become the biggest Milk Co-operative Union in Southern India.

Bamul has

been certified for ISO 22000:2005 & ISO 9001-2000 for quality management and Food Safety Systems. In recognistion to these efforts and achievements, the National Productivity Council (NPC) of Government of India has conferred “Best Productivity Award” FIVE TIMES and “Energy Conservation Award” by Bureau of Energy Efficiency (BEE) to the Union.

ORGANIZATION STATUS The member producers and their Dairy Co-operative Societies (DCS) are the vital constituents of the Union and their progress is the judging yardstick on the efficiency of the Union’s operation. Hence the maximum importance has been given to their development. The Union is making intensive efforts over the years to organize DCSs in more and more villages of the three districts in the milk-shed area.

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Number of Functioning DCS

1165 1055 1119

1266 1301

1657 1708 1607 1483 1547 1386 1433

1997- 1998- 1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 200898 99 2000 01 02 03 04 05 06 07 08 09

Importance has been given to enroll more and more milk producers in the villages as members of these DCS’s.

While enrolling these members, more emphasis is being

accorded to enroll more number of women members and to organize more women managed DCSs under STEP (Support to Training and Employment Program for Women). It is heartening to note that there is an active participation of women/ weaker sections of the society in all the dairy development activities of the Union. They have become mainstay of all the developmental programs of the Union. This has resulted in the buildup of economical benefits to the most vulnerable sections of the rural mass.

As on March 2009 in these DCS , there are 3,25,854 milk producer members are enrolled and out of which 1,02,842 are women and 42,452 members belong to Schedule caste and 15,776 members belongs to schedule Tribes.

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325854 102842

327176

321238

309597

297162

289095

275440 200203

99603

200102

96653

200001

91746

19992000

85849

199899

81344

199798

72220

38878

203831

37501

200187

32827

185166

31218

182279

29246

176848

Total Membership & Women Membership at DCS

200304

200405

200506

200607

200708

200809

MILK PROCUREMENT The Milk produced by 89,537 farmers at village level will be collected every day morning and Evening at DCS. Under Clean Milk Production programme, to maintain the freshness & quality of the milk 85 Bulk Milk Coolers covering 243 DCS of

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Total Capacity 1,46,000 Lts were installed at DCS level. During the year the Unions daily average milk procurement is 7.30 Lakh Kgs, which works out to be 428 kgs per day per DCS. The milk procurement has increased by 2.74 % when compared to the last year.

Avg. Milk Procurement (Kgs Per Day) 805618 713047

496732

557508 532948 546940

758021 710082

730125

594079

404603 424483

199798

199899

19992000

200001

200102

200203

200304

200405

200506

200607

200708

200809

Bamul is offering the most remunerative milk procurement price to member producers. The operational efficiency is reflected on procurement prices paid to the member producers. The average milk procurement price paid during the year was Rs. 13.17 for every Kg of Milk supplied to the Union. Which is 80% of total cost of production.

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Ret. Margin 3%

Sal & Admin 7%

Misc 4%

Int & Bank Chrgs 2%

Packing 4% Process 4%

Milk Purchase 72%

Transport 5%

Milk collected at DCS will be transported to Chilling Centers, through 93 Milk Procurement Can Routes, by traveling 15,054 KM’s every day. 13 Bulk Milk Cooler (BMC) Routes are also in operation, which collects milk from 85 BMC centers of 243 DCS directly transported to Bangalore Dairy through insulated tankers.

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INFRASTRUCTURE DEVELOPMENT: The strategy of Bangalore Milk Union is “Procure More, Sell More & Serve More” and reaping the benefits of economies of scale. In order to realize this strategy, the Union has implemented the following projects so that more and more milk can be procured and processed. This will help us to serve our producer members by passing on the maximum benefits, we are consciously adopting the growth-oriented strategy of helping our producers to grow by ourselves growing constantly.

Mega Dairy with a capacity to process 6 lakh litres of milk per day expandable to 10 llpd has been built by investing Rs. 38.70 crores obtained as term loan from National Dairy Development Board. The Mega Dairy, has latest state-of-the-art technological facilities in dairy processing and the Union will have the ability to manufacture milk and milk products to world class standards.

Although Bamul sets standards for its products for better serve to customers, it was not possible to keep the standards stability due to manual operations. In designing mega dairy, Bamul looked towards an automated system that would allow it to achieve consistent quality parameters for each product. Energy and manpower would also be more effectively optimised and controlled and all plant equipment would be integrated. 16

NEW Projects: Bamul has planned to convert Hosakote Chilling Center into a 2.0.LLPD Capacity Dairy with an investment of Rs.2427.00 Lakh and a New Product Block at Bangalore Dairy Premises with an investment of Rs. 2033.00 Lakhs by the end of 2010. Bamul has SEVEN Chilling Centers geographically located around Bangalore and 82 Bulk Milk Coolers at DCS Level. Milk Product Block within the campus to manufacture Butter, Ghee, Peda, Flavoured Milk, Spiced Butter Milk, Paneer, Set Curds etc.,

FINANCE: The Union had an approximate turnover of Rs. 508.24 crores in the year 2008-09 as against Rs. 452.05 Crores for the year 2007-08. Union has earned a approximate Net profit of Rs. 1.59 Crores for the year 2008-09 as against Rs. 3.44 Crores during 2007-08. This decline in Net Profit is due to increase in Milk Procurement Price to Milk Producers.

TECHNICAL INPUT SERVICES: Bangalore Milk Union is providing various Technical Input & Extension Services to the milk producer members & their Dairy animals through ELEVEN Camp Offices situated in each Taluk i.e., Anekal, Bangalore Head Office (Bangalore South), Yelahanka (Bangalore North), Channapattana, Devanahalli, Doddaballapura, Hosakote, Kanakapura, Solur (Magadi), Nelamangala & Ramanagara. From these camps the Technical Input services like Weekly Mobile Veterinary Service, Emergency Veterinary Service, Artificial Insemination Service, Periodical Vaccinations, Balanced Cattle Feed Sales, Mineral Mixture Sales, Fodder development and Fodder Seed Production, Clean Milk Production practices, Extension Services for Cattle Feeding, breeding, insurance and milk production etc., will be carried over.

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ANIMAL HEALTH AND OTHER ACTIVITIES

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ANIMAL HEALTH The Union is taking special care to promote the health of the cattle of member milk producers. Veterinary facilities have been extended to all the DCS. Mobile veterinary routes, emergency veterinary routes, Health camps, vaccination against foot & mouth disease and thaileriosis diseases, etc., are being regularly done. Regularly Deworming is also done for the cattle. There is also a backup of First Aid Services to needy DCS’s. Particulars MVR Cases Treated Health Camp cases Treated Emergency Cases Treated F& M Vaccination Rakshavac

2004-05 389835 53483 570248 25565

2005-06 151221 81545 68616 468461 20052

2006-07

2007-08

2008-09

128174 63818 377654 13675

149565 70735 430431 13395

166198 70420 373107 18094

ARTIFICIAL INSEMINATION Artificial Insemination (AI) has been the main functional tool in dictating this upsurge of development of Dairying in Bamul. Farmers have taken up cross-breeding from way back in 1962. The Union has surveyed and appropriately located AI centers based on cattle population. It is also popularized the idea of cluster AI centers and replace the Single AI centers in a phased manner. The use of progeny tested semen from “Nandini Sperm Station” is also giving a further boost to the breeding activities.

Particulars

2003-04

2004-05

421

353

No. of Single AI Center

2005-06

2006-07

320

248

2007-08

2008-09

251

259

s

19

1,98,183

1,88,768

1,66,614

1,27,320

1,11,536

1,12,740

28

52

64

89

94

96

No. of AI Done

52,188

96,760

1,38,895

1,69,950

1,69,185

1,92,207

Total AI Done

2,50,371

2,85,528

3,05,509

2,97,270

2,80,721

3,04,947

No. of AI Done No. of Cluster AI Center s

To reduce infertility in cattle, a frontal attack has been continuously attempted by conducting Special Infertility Camps under the expert guidance and by the use of infertility connected drugs. During 1999-2000, a Vertical Silo of 10,000 liter capacity for storing Liquid Nitrogen has been installed under TMDD program in collaboration with National Dairy Development Board and Karnataka Milk Federation. In addition this facility is being used for supplying liquid nitrogen to neighboring Unions and also to Department of Animal Husbandry. This has helped in protecting the quality of semen straws, thereby considerably increasing the probability of conception during artificial insemination of cattle.

CATTLE FEED & FODDER DEVELOPMNET The Union is implementing several programs to increase milk production and also to reduce the cost of milk production in the milk shed area. Balanced cattle feed is being procured from the Cattle Feed Plants of KMF for distribution among member producers.

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Fodder seeds are distributed to member producers at subsidized rates. In addition to this, technical advice, Silage Demonstrations, Azzolla Demonstrations and Straw Treatment Demonstrations are also being conducted at DCS level. Chaff Cutters are supplied at subsidized rates.

Cattle Feed Sales:

2003-04

Particulars

CF Sales

(in MT’s) 19451

2004-05

2005-06

2006-07

2007-08

2008-09

20380

28515

29813

33359

37691

A Seed Processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs. The Union is catering to the Seed production needs of many Unions in Karnataka and also of Southern India.

YASHASVINI HEALTH INSURANCE: Yashasvini Health Insurance Scheme was muted by Government of Karnataka during the year 2001-02. This scheme was implemented by Cooperative department, Members of Co-operative Societies and their family members are the beneficiaries of this scheme. The annual premium is Rs. 120/- per beneficiary.

All major hospitals are adopted for this

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scheme, all types of surgery will be covered under this health scheme. Bangalore Milk union has covered 1.50 Lakh beneficiaries under this scheme by contributing Rs 30/towards premium per beneficiary.

CATTLE INSURANCE: Bangalore Milk Union is providing Insurance Coverage to the Dairy animals in collaboration with United India Insurance Ltd., 40,238 animals are covered under this Insurance. The annual premium is 2.22% of the value of the animal. 50% of the annual premium of Rs. 122.99 Lakh was borne by bamul.

IN THIS MILLENNIUM We want to become not only the largest Union, but also become one amongst the best-run milk unions in the country. The Union is aware of the challenges of the new private entrants, who are mainly thriving on unfair trade practices. They procure milk at least cost, without bothering about the welfare of the producers and without extending any technical 22

inputs for improving milk production. They market milk by resorting to unhealthy and unethical practices deceiving the unsuspecting consumers. The Union wants to counter this in a positive manner by trying to improve its efficiency of operation and market promotion. It wants to become well trenched in the market as market leader. It wants to follow the strategy of cost-competitiveness, which is hard to match by the competitors.

BAMUL COMPITATORS

Bamul has 86% market share. Its competitors are • Heritage • Dolda • Nilgiris • KCA 23

• Classic • Arokya • Swastika • Jersey • Tirumala • Taste me • A one • Aavin • Best milk

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PRODUCTS PROFILE

The Bangalore Milk Union is marketing milk and milk products in the brand name of “Nandini” through 1067 retailers, 30 Franchisee Outlets, 29 Milk Parlors, 35 Whole sale Dealers, 14 Transporter Cum Distributors being served by 167 distribution routes. The key success factor of Bamul in becoming a market leader is the narrow price spread maintained between purchase & sales, marketing higher volumes of milk. The volume of sales plays a critical role in determining costs. Hence, the market strategy of Bangalore Milk Union is to regard selling of market milk as its core marketing activity and to concentrate its efforts in this direction to increase the volume of milk sales. The impressive growth in the sale of milk by Bamul over the years is due to the persistent efforts to maintain timely supply, maintaining quality and attending to the complaints of consumers and agents with prompt follow-up action.

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200203

200304

200405

200506

200607

646283

448689

200102

636776

431663

200001

579782

438146

19992000

526346

434375

199899

484707

434250

199798

419588

387406

Total Milk Sales (Avg. Ltrs/Day)

200708

200809

Bamul is also organizing Consumer Awareness Programme as a part of Market Development to create awareness of “Nandini” Milk through personal contacts, Door to Door campaigns, Organizational Meetings, School Children Mega Dairy Plant visit etc., are conducting regularly.

TYPES OF PRODUCTS 27

NANDINI TONED MILK: Karnataka’s favorite milk, Nandini Toned Milk. Pure milk containing 3.0% Fat and 8.5% SNF(Solids-notFat). Available in 250 ml, 500 ml, 1 ltr NANDINI and 5 ltr FULL CREAM MILK: packs. Better to use within a day from the date ofFull Cream Milk. containing 6% Fat and 9 % Nandini pack. SNF. A rich, creamier and tastier milk, Ideal for preparing home-made sweets & savouries. Available in 500ml and 1ltr packs. Apart from the Milk, the different NANIDINI HOMOGENIZED TONED MILK: Milk Products are Curds, Butter, Ghee, Peda, Paneer, Set Nandini

Homogenized

Milk

is

pureCurds which is Butter Milk are also sold. & Spiced homogenized and pasteurized containing 3.5% Fat & 8.5% SNF. Consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 250 ml,500 ml,and 1 ltr packs. Better to use within a day from the date of pack.

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Full Cream Milk Sales (Avg. Liters / Day) 181028 166873 165108 143855

38663

199798

48556 49094 48347 55821

199899

19992000

200001

200102

62943

200203

106976 81116

200304

200405

200506

200607

200708

200809

NANDINI CURD: Nandini Curd made from pure milk. It's thick and delicious. Giving you all the goodness of homemade curds. Available in 200 gms and 500 grms & 1 Kg packs. Nandini Butter 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 100 gms, 200 gms and 500gms cartons

2001-02

2002-03

2003-04

2007-08

2008-09

49265

38312 2004-05

75127

2000-01

16054

1999-2000

14490

1998-99

11139

8208

1997-98

6566

4495

32825

61696

Curd Sales (Avg. KG's / Day)

73369

both salted and unsalted.

2005-06

2006-07

COW’s PURE MILK: NANDINI GOODLIFE SMART-DOUBLE TONED Cow’s Pure Milk, UHT processed, bacteria free in a MILK: tamper-proof tetra-fino pack which keeps milk fresh Homogenized, double toned milk contains 1.5% Fat for & 60 days refrigeration opened. Contains 9% SNF. without Suitable for a preparinguntil tea/coffee,milk shakes 3.5%milk Fat delights & 8.5% for SNF. Available ml conscious Tetra29Fio and people leadingina 500 fitness pack, 200Available ml, 1 ltr brick shelf-life lifestyle. in 500woth ml Fino pack.of 120 days.

NANDINI GOODLIFE SLIM: Fresh pure milk that’s 99.5% fat-free and with 90% SNF. Perfect for a healthy lifestyle among fitness conscious people and senior citizens. Available in 500 ml Fino pack,200 ml,1 ltr Tetra brick packs with shelf-life of 120 days.

NANDINI BUTTER MILK: 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, asafetida and fresh ginger. Nandini spiced butter promotes health and easy digestion. It is available in 200ml packs

NANDINI GHEE: A taste of purity. Nandini Ghee, made from pure butter. It is fresh and pure with a delicious flavour. Hygienically NANINI PURE MILK PEDA: manufactured and packed in a special pack to retain the goodness No matter what you are celebrating! Made from pure FLAVOURED MILK: of pureNANDINI ghee.NANDINI Shelf lifeBUTTER: of 6 months at ambient temperatures. milk, Nandini Peda is a delicious treat for the family. Sterilized Rich,flavoured smooth milk, delicious. a nutritious Butter is made andout an Available in 200ml, 500ml, and 1000ml sachetsNandini &and 15.0healthy kg tins.drink Store at room temperature approximately 7 days. all- season of freshwholesome pasturised drink cream.available Rich taste, in smooth 200 mltexture tetra slim and Available in 250gms pack containing 10 pieces each. pack the in rich different purity of flavours cow's milk, like makes Badam,anyPista, preparation Mango,a 30and Rose Strawberry, delicious Choco treat.and Available Milkafe.in Badam, 100 gmsPista (salted), 200 gms are available and in 500gms 200 mlcartons bottle and bothBadam salted and 200 unsalted. m sachet also.

NANDINI KHOVA: Made by evaporating milk. Contains min. 20% fat used as basic material for preparation of sweets like Peda, Kunda etc. available in 200 gm pack and also in bulk.

NANDINI PANEER: Tasty, wholesome and nutritious supplement a variety of NANDINI CURDS: dishes .add SET paneer to make dishes creamy and mouth Available in 200 gmpacked and 400 gm cups. watering. Specially 5 layer film & vacuum packed to preserve its quality. Refrigerated storage is required & available in 200 gm chiplets & 1 kg slap packs.

31

PRICE CHART OF NANDINI MILK AND MILK PRODUCTS Sl.

Products Name

Package

No. 1

2 3 4 5

6

TONED MILK

500 ML 1000 ML 6000 ML Credit bulk/lit DOUBLE TONED MILK 500 ML 1000 ML FULL CREAM MILK 500 ML 1000 ML HOMOGENISED COW 500 ML 250 ML MILK CURDS 200 GMS 500 GMS 1000 GMS Bulk loose/kg GHEE 50 ML 100 ML 200 ML 500 ML 1000 ML 15 KG TIN 100 GMS 200 GMS

Rate to

Discount

Rate

the

per pkt.

per pkt

Retailer 7.72 15.44 89.76

0.28 0.56 3.24

6.755 13.51 10.615 21.35 8.685 4.825

0.245 0.49 0.385 0.77 0.315 0.175

4.60 9.25 18.50 18.50 13.182 22.726 43.636 106.36 209.09 3697.80 17.857

0.40 0.75 1.50 1.00 1.318 2.274 4.364 10.64 20.91 97.20 2.143

35.714

4.286

MRP per

8.00 16.00 93.00 16.00 7.00 14.00 11.00 22.00 9.00 5.00

lit/kg 16.00 16.00 15.50 16.00 14.00 14.00 22.00 22.00 18.00 20.00

5.00 10.00 20.00 19.50 14.50 25.00 48.00 117.00 230.00 3795.00 20.00

20.00 20.00 20.00 19.50 290.00 250.00 240.00 234.00 230.00 253.00 200.00

40.00

200.00

32

7

BUTTER

8

PEDA

500 GMS(USB) 500 GMS(SB)

250 GMS Managing 25 GMSDirector 9 KHOVA BULK/KG 10 BUTTER MILK 200 ML General Manager 11 CREAM 200 GMS 500 GMS BULK/KG 12 SET CURDS 200 GMS GMS Marketing Administration 400Finance 13 PANEER(6% Fat) 1000 GMS 14 GOOD LIKE SLIM 500 ML 15 Manager GOOD LIFEDeputy 500Manager ML Manager

89.285 80.355

10.715 9.645

100.00 90.00

200.00 180.00

49.11 5.357 187.50 3.40 23.75 57.00 114.00 8.50 17.00 Production 118.75 11.185 12.15 Manager

5.89 55.00 0.643 6.00 22.50 210.00 0.60 4.00 1.25 25.00 3.00 60.00 6.00 120.00 1.50 10.00 3.00 20.00 Purchase/Store 11.25 130.00 0.815 12.00 0.85 Manager 13.00

220.00 240.00 210.00 20.00 125.00 120.00 120.00 50.00 50.00 130.00 24.00 26.00

Deputy Manager

Assistant Manager

Deputy Manager

Deputy Manager

Assistant Manager

AO/PRO/ PS/TO

Assistant Manager

Assistant Manager

Zonal Officer

Super -intendent

Accounts Officer

Technical Officer

Super -intend

Administrative Assistant-I

Super -intend

Diary Supervisor

Marketing Assistant at

Administrative Assistant-II

AA Gr-I/II III

Diary Operators

Helpers

Helpers

Assistant Manager

PO/SO

Super -intend

Typist

Helpers

Helpers

Helpers ORGANIZATIONAL STRUCTURE

33

Roles and responsibilities of MANAGING DIRECTOR.

34

The role of a Managing director (MD) is to design, develop and implement the strategic plan for their company in the most cost effective and time efficient manner

RESPONSIBILTIES •

The Managing director of BAMUL is responsible for both the day-to-day running of the company and developing business plans for the long term future of the organization.

•

He is accountable to the board and the shareholders of the company.

•

He is responsible to motivate his employees time to time to get things done from them.

•

He needs to manage everything. That includes the staff, the customers, the budget, the company's assets, the liabilities and all other company resources to make the best use of them in order to increase the company's profitability.

•

He reports weekly to the board of directors of KMF about how the company ais doing. The board of directors will offer suggestions and ideas as per how to improve the company, its his responsibility to implement it and improve the company.

Roles and responsibilities of GENERAL MANAGER (ADMIN)

35

•

His responsibility is mainly managing and coordinating work of the process managers working under him.

•

His duties also comprise devising and planning of company policies, and discussing them with the top management for final approval.

•

He develops guidelines of operation for certain processes, which are directly under his authority.

•

He has to prepare elaborate reports of the functioning of all the company departments, and submit the reports to the top management for practice performance review.

•

He even plays an important part in recruiting and training process of managers under him.

The General Manager further takes care of Marketing, Administration, Finance, Production and Purchase department.

PURCHASE DEPARTMENT 36

Hierarchy Manager

Assistant Manager

Purchase Officer

Superintend

Case Workers

Typist

Helpers

6

2

2

Roles and Responsibilities of PURCHASE MANAGER

37

The role of a Purchasing Manager is buying or approving the acquisition of goods and services needed by the company.

RESPONSIBILITIES •

Searching reliable vendors or suppliers to provide quality goods at reasonable prices.

•

Negotiating prices and contracts

•

Assign a PO number and forward order to appropriate vendor

•

Reviewing technical specifications for raw materials, components, equipment or buildings

•

Determining quantity and timing of deliveries

•

Notify original orderer of receipt

•

Forward report to Accounting

Roles and Responsibilities of PURCHASE ASSISTANT MANAGER To assist Purchase Manager in purchasing & Accounting of all types of stores

Roles and Responsibilities of PURCHASE OFFICER To assist the Manager (Stores & Purchase) in purchasing, accounting and issue of all types of stores

Roles and Responsibilities of SUPERINTENDENT To supervise the work done by the case workers and be a intermediate between case workers and purchase manager

Roles and Responsibilities of CASE WOKERS 38

To prepare tenders and quotation to vendors and all other important documents required by purchase department. Look after the procurement of raw materials and send it to stores for storage

Roles and Responsibilities of TYPIST To type tenders and quotation and other all important documents

Roles and Responsibilities of HELPERS To bring raw materials and load it in stores department.

INTRODUCTION

39

The most important thing needed in the any company for production of finished goods is raw materials. The purchase of proper raw materials is taken care by the purchase department with concerned to marketing department. BAMUL has a well maintained purchase department headed by well-experienced purchase manager and assisted by assistant manager and so on. They fulfill the need of all the departments by providing required raw materials. If the materials to be purchased are of value less than Rs.1 lakh, the quotations are collected from suppliers or the enquirer of Bamul. If the quality of the material is good, the purchase committee negotiates the price with the supplier. The purchase committee comprises of managing director and section heads of each departments. If the material to be purchased are of value more than Rs.1 lakh, then a tender notice is published in the newspaper. The producer to bid for the tender is mentioned in the notice itself and selection of the supplier is done on the basis of low-bid with the necessary condition that the material complies as per the desired quality. Bamul doesn’t compromises on quality of the materials.

PURCHASE PROCEEDURE

40

=>MATERIALS VALUE LESS THAN A LAKH: Documents required: Indent along with note approved by the Managing Director. Steps involved while placing the order: 1. Enquiry will be made with the registered Manufacturers/ Dealers/ Distributors/ Suppliers etc. 2. Preparing comparative statement of the offers received. 3. Samples quality checking wherever samples obtained. 4. Rate analysis. 5. Placing before the purchase committee for decision if the total purchase value exceeds Rs.25,000/- and then obtaining approval of the Managing Director. Below Rs.25,000/- direct approval from the Managing Director and also depending upon the situations. 6. Placing purchase order/ work order. 7. Quality checking after receipt of the material. 8. Acceptance. 9. Payment as per terms and conditions.

=>MATERIAL VALUE MORE THAN A LAKH: Document required: Indent, note approved by the Managing Director

41

with IBP. Steps involved while placing the order: 1. Submitting Tender Notification to the Tender Bulletin Officer Govt. of Karnataka for approval to invite the Tenders. 2. Inviting tenders through reputed news papers. 3. Opening of Tender Technical Part-I. 4. Preparing of evaluation report for Part-I by Tender Bid Appraisal Committee. 5. Evaluation/ review of Tender Technical Part- I by tender inviting authority committee. 6. If the Technical Tender passes by the

Tender inviting authority committee

commercial Tender Part- II will opened. 7. Preparing comparative statement of the commercial offer to identify the L-I. 8. Rate Negotiation with L-I. 9. Preparing proceedings of the tender inviting authority committee meeting and got it approved by the Board. 10. Placing Purchase Order/ Work orders. 11. On receipt of material quality checking and acceptance. 12. Payment as per terms and conditions.

Functions of Purchase Department: •

Evaluating and Rating of suppliers.

•

Selecting of suppliers.

•

Finalization of terms of purchase.

•

Placement of purchase orders.

•

Follow-up

•

Approval of payments to suppliers.

PRODUCTION DEPARTMENT

42

Hierarchy: Manager

Deputy Manager

8

Assistant Manager

15

Technical Manager

20

Diary Supervisors

32

Diary Operators

40-50

Helpers

10-15

Roles and Responsibilities of PRODUCTION MANAGRER 43

The role of production managers is to coordinate the resources and activities required to produce milk and milk products.

RESPONSIBILITIES •

Planning the production schedule within budgetary limitations and time constraints.

•

Assembling and controlling production process.

•

Inspecting samples of finished goods and recording defects

•

Working out the human and material resources needed

•

Estimating costs and setting the quality standards

•

Monitoring the production processes and adjusting schedules as needed

•

Selection and maintenance of equipment

•

Monitor product standards

•

Working with managers to implement the company's policies and goals

•

Ensuring that health and safety guidelines are followed

•

Supervising and motivating a team of workers

•

Reviewing the performance of subordinates

•

Identifying training needs

Roles and Responsibilities of DEPUTY PRODUCTION MANAGRER To assist the Production Manager and ensure proper production of milk and milk products

Roles and Responsibilities of ASSISTANT PRODUCTION MANAGRER To assist the Production Manager and Deputy Manager and ensure proper production of milk and milk products

Roles and Responsibilities of TECHNICAL PRODUCTION MANAGRER

44

To look after all technical issues in the production department and assist Production Manager in such issues.

Roles and Responsibilities of DIARY SUPERVISORS To supervise the work of Diary operators and Helpers in the production of milk and milk products

Roles and Responsibilities of DIARY OPERATORS To control the flow of production process .i.e. from procurement of milk, processing it and producing milk products and also packaging.

Roles and Responsibilities of HELPERS They help the Diary Operators in their work and all other small work required in production department

INTROCUCTION

45

Production Department of BAMUL is the most important and largest department in the organization performs the function of processing the milk and transforming the raw materials into finished goods with the help of 5 M i.e. Men, Material, Money, Machine and MILK. BAMUL has well established production department maintained by the production manager with help of deputy manager and assistance of assistant manager. The whole process of processing milk is totally computerized. The whole process is carried on by computers.

OBJECTIVES: •

Execute co-ordinate, organize and monitor the production activities.

•

Increase the input as far as possible.

•

Decrease the cost of production and wastages in production as much as possible.

•

Ensure process, control and quality of products manufactured.

•

Also ensure that the production meets the planned requirements within stipulated time.

46

PRODUCTION PROCESS First of all the milk is collected from farmers by the Milk Co-operative Societies which is set by the BAMUL for collecting milk. From here the processing of milk starts. It is processed to preserve the life of the milk, as we know that the life of milk is only 6 hrs. There are four steps of processing the milk. 1. Chilling: The milk collected is sent to the chilling centre, the milk is immediately chilled to 4-6 degree C and stored in storage tanks. 2. Quality Check: The chilled milk is brought in the company in tankers which is tightly packed. The quality centre tests the milk and verifies the result. The result received by chilling centre should tally with the result obtained by quality check. Even if there is slightest difference in the result, the whole tank of milk is rejected. 3. Pasteurization: The milk is then pasteurized. The pasteurization is usually done in two ways. One is by LTLT (Low Time Long Temperature) method, which is done by heating the milk at 63 DC and another method is HTLT (High Time Low Temp), which is done by heating the milk at 72 degree C for 15 to 20 seconds. BAMUL uses the second method. After heating the milk and holding it for 15 seconds the milk is rapidly cooled at the temperature of 7 degree C. Pasteurization helps in protecting the milk from attracting bacteria due to the rapid cooling of milk after heating. Therefore it is healthy to drink pasteurized milk.

4. Standardization:

47

Next process is standardization, here required amount of Fat and SNF is added. This is done because one cannot drink the milk directly collected from breeds of cow and buffaloes as it may differ in its composition. To uniform the composition of milk standardization is done. In plant there are 3 Standomat to mix the nutrients. 5. Packing: The milk is now packed in plastic pouches/ tetra packs /bulk vending etc. There are 60 machines which helps in packing 16 lakh packets per day. Then it is sent to cold storage until dispatching to market. In BAMUL production department works 24/7 with different shifts to maintain the quality of the milk and supply us good quality and fresh milk.

FUNCTIONS: •

Procurement of raw material.

•

Maintain and produce standard quality products

•

Produce zero bacteria milk.

•

Maintaining and trying to reduce cost of production

•

Using of advanced technology

•

Maintain inventory of both raw materials and finished products

•

Produce different quality products to meet the market needs and wants

48

PRODUCTION OF MILK

Each tanker is weighted at the weigh bridge & the sample milk is tested in Electronic Fat Tester

After processing, the milk is converted into 4 types of milk i.e. FCM, TM, CTM and HCM

Next the milk is sent for Packing section for packaging.

Milk is unloaded to raw milk silos (4 silos with a capacity of 1 lakh litres)

Heating at 78 degree C and maintained at 45 degree C

HMST where pasteurized milk is stored

Chilling of milk at 5 degree in pasteurize

Dispatching section, milk is kept at 5 degree C in the cold

PRODUCTION OF BUTTER

49

RAW MILK PREHEATED TO 40-50 DC

BUTTER

CREAM SEPARATOR

CREAM PASTEURIZERS

CONTINUOUS BUTTER MAKING

CREAM TANKS AT 10DC

PACKED AND STORED IN DEEP FREEZERS AT 20DC

PRODUCTION OF GHEE

BUTTER MELTED AT 120-130 DC BUTTER OIL

GHEE BOILER 115-120DC CLARIFICATION

‘

PACKED AND STORED

MARKETING DEPARTMENT

50

Hierarchy

Manager

Deputy Manger

Office DM

Zone DM

Market Officer

Assistant Manager

Superintend

Clerks/ Case workers

Marketing supervisor

Office (Trans) DM

Senior Dispatcher

Dispatchers

Accounts Officer

Case workers

Helpers

Roles and Responsibilities of MARKETING MANAGER 51

The role of marketing manager is to develop the firm’s marketing strategy in detail. And sell milk and milk products

RESPONSIBILITIES •

To achieve marketing goals so as to achieve organizational objectives by higher sales

•

With the help of subordinates, including product development managers and market research managers, he estimates the demand for products and services offered by the firm and its competitors.

•

He identifies potential markets—for example wholesalers, retailers, government, or the general public.

•

He develops pricing strategy to help firms maximize profits and market share while ensuring that the firm’s customers are satisfied.

•

In collaboration with sales, product development, and other managers, he monitors trends that indicate the need for new products and services, and he oversees product development.

•

He works with advertising and promotion managers to promote the firm’s products and services and to attract potential users.

Roles and Responsibilities of DEPUTY MARKETING MANAGER To assist the Marketing Manager and ensure proper distribution of milk and milk products

Roles and Responsibilities of OFFICE DEPUTY MARKETING MANAGER •

He takes care of all paper work directed by Marketing manager and also does the tasks delegated by marketing manager.

•

Deals with retailer’s, wholesaler’s and customer’s problems

Roles and Responsibilities of MARKET OFFICER

52

To assist the Deputy Manager regarding complaints, supply mistakes etc. and look after superintendent’s work

Roles and Responsibilities of SUPERINTENDENT •

To supervise work of retailers, regarding sales, payments, extension, appointing etc.

•

They report regarding all types of complaints regarding mistakes in supply, indent etc to Market officer.

Roles and Responsibilities of CLERKS/ CASE WORKERS They receive orders from retailers and make the products available for dispatching and prepare other all paper works concerned to retailers and marketing department.

Roles and Responsibilities of OFFICE TRANSPORT DEPUTY MANAGER • • •

He looks after all the dispatching work. To check whether all packages are properly packed and sealed or no. To check whether the quantity of materials matches with the order given by retailers

Roles and Responsibilities of SENIOR DISPATCHER They supervise the work of dispatchers.

Roles and Responsibilities of DISPATCHER They do the loading of material in the vehicles of vehicle staff in the company premises

Roles and Responsibilities of ACCOUNTS OFFICER He takes care of billing of vehicle staffs for transportation of goods and other financial things of marketing department.

INTRODUCTION

53

Marketing department is required to help to reach the products produced by the diary to the consumers. In each organization it is one of the most important departments which takes care of marketing and supply of the products. It also handles the customer problems.

BAMUL has a well established marketing department controlled by the Marketing Manager, who takes care of marketing and selling of milk and milk products. He is responsible for preparing plans, strategies for selling to the target market in order to achieve the organizational objectives by achieving marketing goals. He also forecasts the demand for their products in the market. BAMUL is mainly marketing the milk and milk products. It gives priority to selling of milks and curds to the consumers and in addition it produces many milk products. It is the one company which is solely dedicated to customer satisfaction than earning profit by supplying pure, non-contaminated, good quality milk. Most importantly BAMUL is a “No Profit No Loss” organization. Bamul has 86% market share. The marketing department is always an open ear for customer problems. It analysis the problem in detail and provide best solution to the customers. May it be the price or miscommunication between retailer and customer or any problems of retailer etc. It’s priority is to solve the customer problems and see that it doesn’t occur again.

OBJECTIVES The primary objective of marketing is to satisfy the customer to organize the sales department in well mannered because “ CUSTOMER IS THE KING OF MARKET”. 54

•

To provide utmost satisfaction to the customers

•

To create market awareness and preference for nandini

•

Customer retention

•

Balance the demand and supply of milk products

•

Prepare sales budget

•

Formulate strategies to compete with it competitors

•

Always ensure position of nandini as market leader in milk

•

Achieving the sales target set in integrated business plan union

•

Customer complaint re addressed within 12hrs

•

Improving the customer satisfaction index

•

Meeting the needs of channel members

MILK DISTRIBUTION Milk is distributed twice in a day in 3 ways.i.e 1) regular routes 2) TCD (transport cum distribution) 3) Cash and carry routes MORNING Through regular routes, in the morning milk is carried by 152 routes and 11 cash and carry. Daily morning approx 5.7 lakh litres of milk are distributed and 70,000 kgs curds. AFTERNOON Milk is carried by 37 routes and 5 cash and carry routes. Total sales in the afternoon is approx 1, 11,000 liters of milk and 73,000 kgs curds and through TCD- 96,000 liters milk is distributed. The orders are placed by retailers for the milk and milk products. Marketing department receives the orders and supplies as per the orders received. There are 50 dispatchers in the

55

company who supervises loading of milk and milk products within the company which is done by vehicle staff. Retailers collect the milk and milk products twice a day. At present there are •

1057 retailers

•

7 wholesale distributers

•

21 TCDs

•

28 milk parlours

•

34 franchise outlets.

Retailers are appointed on the basis of organization norms. Retailers are selected by group decision. The retailers collect milk twice in a day from the diary. After the sale is done, retailers remit the money from Banks. The retailers can involve in this scheme in two forms. Challan system: The mode of getting into this scheme is by making a minimum deposit of Rs.20, 000 the organization prepares daily bank challans based on their supply and bank sends the paid challens through the courier to the diary. Accordingly, the retailers make payment in concerned bank. If the retailers fails to remit the sales proceeds, the next day the supply o milk is stopped and the necessary actions to be taken to recover the same. Cheque Basis: The mode of getting into this scheme is by making a minimum deposit of Rs.50,000. The retailers will issue the cheques based on their supply, for the milk and milk products. The same cheques will be presented by diary to the concerned banks for realization of cash. If any cheque is bounced then the milk supply of the retailer will be immediately stopped and necessary action is taken to recover the same. Cash and carry: They can get the milk and milk products by directly paying to vehicle staff.

Medium of promotion •

Wall painting 56

•

Vehicle painting

•

Glow sign boards

•

Tarpaulin carry bags

•

Banners

•

New milk parlour fabrication

•

Walk-in cold storage

•

Gifts to channel members

•

POP material

•

Mediclaim to channel members

•

Event sponsoring

•

New product launch

•

Dairies/ calendars to channel members

•

Children’s competition or cultural programmes

For maintaining cold chain the following things are given to the retailers•

Bottle coolers

•

Insulated boxes

FUNCTIONS

57

•

Conducts customer survey on interval basis to take feedback from the customers on the quality of the milk and milk products.

•

Develops proper budget for advertising and sales promotion.

•

Plan the advertising campaign and make effective.

•

Ensure proper functioning of sales and distribution channel.

•

Take required steps to improve the market share.

FINANCE DEPARTMENT 58

Hierarchy GENERAL MANAGER

MANAGER FINANACE

P&I

ASST. MANAGER

Helpers

AUDIT

BILLS

ASST. MANAGER

ASST. MANAGER

Helpers

Helpers

PAY ROLLS

SALES

DEPUTY MANAGER

DEPUTY MANAGER

Helpers

ASST. MANAGER

Helpers

INTRODUCTION 59

Finance department is that part of the organization from where the funds are ascertained to keep the business move on. It is like heart of the organization. It is the most important part of any organization. BAMUL’s Finance department is well-maintained and controlled by the general manager of finance. He looks after the whole finance department and checks out whether each employee is doing his duty properly or no and also sees that, there is no manipulation in accounts or misappropriation of funds.

OBJECTIVES •

To help in achieving the business results

•

To asses the working capital requirements

•

To protect the financial interest of the company

•

To monitor the budget and budgetary control

•

To invest the funds judicially

•

Monitoring the funds collection and payments

•

To identify and reduce the ideal funds

•

To maintain adequate funds to carry out the business

•

Controlling the in flow and out flow of cash

•

To see that the company never suffer from lack of funds

Functions of P&I 60

•

It does weekly billing of milk purchase in two shifts at chilling centre and once in a day at bulk milk cooling centre (720 center) and then payment is released directly to the bank accounts of MPCs (DCS).

•

Payment of procurement contract charges for milk transportation from MPCs to DCS and tanker contract bills from MPCs to main diary. It is fortnightly bills.

•

Bills pertaining to purchase of stores materials and input trading items required by MPCs.

•

They maintain all the above in society/ individual accounts.

•

Payments per expenses under various schemes.

Role and Responsibilities of P&I people The helpers will collect the bills from chilling centers, MPCs, DCS etc and will submit to Assistant manager, the assistant manager then will check the bills and files it and submits to Manager of finance for re- check and approval. The Finance manager will then send it to General Manager for approval.

Functions of AUDIT SECTION •

Preparation of IBP(Integrated Business Plan) once in 12 months and preparation of monthly provisional P&L a/cs.

•

Preparation of Annual a/cs.

•

Finding of Income tax returns

•

Statutory audit of co-operative department

•

Submission of final a/cs to annual general body for approval

•

Seeking approval of annual general body for annual budget

•

Approval of financial a/cs.

•

Preparation and approval of statutory annual report.

•

Approval of Audit complaints report.

61

Role and Responsibilities of Audit people The helpers have to give necessary files and information required by assistant manager. Assistant manager should prepare the IBP and other financial statements and send it to Finance manager for checking and approval. The same is sent to General Manager for approval and he’ll will submit it during board meeting to the chairman as to show the financial status of company.

Functions of BILLING SECTION •

Case workers process the bills and send to superintendent then to Asst. Manager and to Deputy Manager for approval and then Payment are released by Managing director.

•

They prepare annual budget which is called as Integrated Business Plan, where in they declare the activity qualified, value it and prepares financial outlay on monthly basis.

•

Purchase part a/cs are maintained by Bills.

•

All bills are subject to budgetary allocation

•

Budget is approved by members of BOD and in annual general meeting.

Function of PAY ROLLS Payment of salary is based on employee based masters as given by admin and daily attendance as per biometric attendance certificate. Monthly salary bill is drawn in ERP(Entrepreneual Resource Processing) accounting package.

Functions of SALES SECTION •

The indent

•

Three types of collection- Cheque, Cash and carry and challans.

•

Maintains individual retailers a/cs

•

They give schedules to the retailers

62

DIVISION OF PROFIT 25% of profit is transferred to Reserve Fund. 2% of profit is paid as educational access to co-operative department. Dividend is declared as act from 1% to 25% as payable on shares. Balance of Profit is further divided, 65% paid as bonus to members and it is on volume of milk purchased by us.

63

ADMINISTRATION DEPARTMENT

Hierarchy

DEPUTY MANAGER ASSISTANT MANAGER AO/PRO/ PS/TO SUPERINTENDENT ADMINISTRATIVE ASSISTANT-I ADMINISTRATIVE ASSISTANT-II CLERK CUM COMPUTER OPERATOR

HELPERS

64

Roles and Responsibilities of DEPUTY MANAGER •

Manage individual department members as directed by the G M.

•

Provide advice and consultation to other department members.

•

Deputize for the General Manager.

•

Contribute to the management of team processes and procedures.

•

He also takes care of construction of salary of employees

Roles and Responsibilities of ASSISTANT MANAGER Assistant manager is typically given management authority to make key decisions quickly, is heavily involved in training of other staff, and perform paperwork duties. •

He has to complete the tasks delegated to him by GM.

•

Assistant managers are trained in the knowledge on how to perform the functions of General manager and to be a vital asset in supporting the overall management of a specific department in BAMUL

Roles and Responsibilities of SUPERINTENDENT To supervise the work done by the case workers and be a intermediate between case workers and General Manager

Roles and Responsibilities of ADMINISTRATIVE ASSISTANTS I and II To assist the Deputy Manager (Admin) in all the administrative work.

Roles and Responsibilities of CLERK CUM COMPUTER OPERATOR •

To do all paper work.

•

Takes care of the students doing in plant study

•

Prepares order letters and certificate for students doing project work

•

Prepares receipt for salary of employees etc.

65

INTRODUCTION Administration department is like human resource department, it is mainly connected with human relationship of the company. A sound, well organized human resource leads to success and growth of the company. Thus administration department plays a very important role in the functioning of the company.

OBJECTIVES •

To maintain good relation between the top level management and middle level management and with lower level management.

•

Recruitment and selection of employees for the jobs in the organization.

•

Proper orientation and induction of new employees

•

Effective molding of human resource

•

Providing reasonable compensation and remuneration

•

Building up employee morale.

•

Provision for better working condition and other facilities.

•

Achieve employees satisfaction and customer satisfaction.

RECRUITMENT POLICIES Method of Recruitment as per the Karnataka Co-operative Societies Act of 1959 and rule 17 and as per Circular and directives issued from Registrar of Co-operative Societies from time to time: 1) Recruitment by Direct recruitment.(Age limit 18 yrs to 33 yrs) •

By giving vacancy ad to Employment exchange or News papers.

•

Competitive examination is taken

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List is prepared as per order of merit by the Selection committee appointed for the purpose.

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Selection to the posts as mentioned in the Rules Book shall be governed in accordance with the by-laws of the BAMUL.

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2) Recruitment by promotion •

If a post is to be filled up by the promotion by selection of a person on the basis of Seniority-cum-merit in all respects to discharge the duties of the post from among the persons eligible for promotion as stipulated in BAMUL subsidiary Rules-2003 and by any such rules as decided by committee.

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If suitable persons are not available for promotion in BAMUL. Expert Panel Committee from time to time will decide for Recruitment of Professionals to certain posts like DM, AM and other cadres.

Provision for Reservation Appointment for the post shall be reserved for SC/ST/CAT-I and other categories of backward classes to such an extent and in such manner as may be specified by the government under clause(4) of article 16 of Constitution of India. There is provision even for physically handicapped and ex-servicemen.

Provision for Women The reservation for women shall be in accordance with the provision of government orders from time to time. If eligible women are available for filling vacancies set apart, such vacancies shall be filled up from among the same categories of male candidates.

SALARY STRUCTURE OF EMPLOYEES Basic salary + Dearness Allowance + CCA + House Rent allowance and other allowances at the rate as per prevailing rules and orders from time to time from government.

PROMOTION Here promotion is based on Seniority – cum – merit basis. Seniority shall be the sole consideration from among the employees who all eligible for promotion. Even merit is also considered most of the time.

SERVICE RULES of BAMUL

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There are certain service rules which the employees of BAMUL should follow, they are as follows:1. Obligation to maintain secrecy. 2. Evidence before committee or any other authority. 3. Employees to promote the BAMUL interest. 4. Prohibition of participation in politics and also contesting for election. 5. Private trading. 6. To follow the rules and regulations of BAMUL. 7. To avoid misconduct in work place such as being disobedient, giving and taking bribes, being absent without leave permission etc. 8. Employees not to seek outside employment.

TERMINATION of EMPLOYEES IN BAMUL The employees will be terminated from BAMUL on the happenings of the following events:1. If a permanent employee completes 58 yrs of age. 2. Expired while on service 3. Terminated from resign from service.

FUNCTIONS

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Recruitment of candidates.

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Selecting of best suited and right person.

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Training and development of employees

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Framing of rules

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Creating a good working environment.

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Motivating the employees to work hard

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Employee service and benefits

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Compensation

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Personal audit

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Promotions and transfer

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Wage and salary administration

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Job analysis and job description

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Sanction of increments.

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Disciplinary action against misbehaviour of employees.

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BENEFITS PROVIDED TO THE EMPLOYEES  Training is provided to all employees in their particular fields, conducted at CTI, KMF and NDDB Erode/ Gujarat etc. the main aim of giving training is to gain knowledge and expertise in their work, which is helpful to both employees and organization.  Canteen facilities are provided at very chap rate( meals at Rs.2 per head, Rs.4 for contract laborers and Rs.10 for visitors.)  Conveyance allowance is given to employees.  Shift allowances are being paid to the employees who work in shifts at respective places.  The following leave facilities are given. 

30 days earned leave(EL) in a year.

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15 days casual leave in a year.

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Half pay leaves for 20 days in a year.

 A full time medical facility is provided.  House building loan/ house purchase loan/ house repair loan is given.  Vehicle loans are also given.  Bonus is given to all employees.  1 kg Ghee is given per year to all employees.  Half liter of milk per employee is given free flush season(2 months) and of half of price for remaining 10 months.  Sports budget of Rs.50,000 is provided per year. Free milk/ bread to sports men after every sports activities.  Two pair of uniform per year and also washing allowance.  Attendance bonus of Rs.30/month.  Shift allowance is being paid at the rate of Rs.2.50 for 2nd shift and Rs.3 for 3rd shift.  Free milk, tea, coffee and snacks to employees working at night shifts and early morning shifts.

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SWOT analysis STRENGTH  Price is competitive.  They keep less margin to retailers.  Quality is highest certified by ISO and HACCP. Government also controls the quality indirectly.  Nandini is committed to social commitment with farmers, retailers etc.  They get sufficient milk from farmers.  Diary and procurement centre is situated very close in Bangalore.  Transportation cost is low.  Well organized organization. WEAKNESS  BAMUL is neither nor government organization. To take any decision. They have to take permission from board and government. It is time consuming.  Less margin of profit.  Interference of too many agency.  Comparatively employees are more, thus cost of administration is more. OPPORTUNITY  Expansion of Diary in Vascote and Onekal.  Separate Production block  For metros, high tech parlours are going to be opened.  Walk-in cold storage is to be opened.  Start many parlours with a view of All Time Milk(ATM) for consumers.  Increase retailers in regional areas.  Try to produce and supply all pther products.

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 Supply bottle coolers.  Supply insulated boxes.

THREATS  Private agency giving more margin to retailers. Retailers get attracted very soon.  Private agency can implement many schemes easily.  MNC’s are a big threat to BAMUL as they may enter into procurement of milk.

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CONCLUSION BAMUL is the no.1 milk diary in India. It has unique features such as No Profit No Loss motive, it acts as mediator between farmers and the public. It gives social commitment to farmers and sells its products at convenient price for customers. It was a great experience coming to Bangalore Diary and doing my in plant here. I got an exposure of the corporative world. I got a chance to compare our theory with the practicality. By studying about the BAMUL organization I got to know how the people work in the organization. It was a great experience in BAMUL knowing how milk is processed and other products and also how it is good for our health. I gained lot of knowledge.

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BIBLIOGRAPHY •

www.bamul.com

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www.google.com

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Rules book of BAMUL

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Brochure

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Company’s Profile CD

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