organizational study of bamul

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

AN ORGANISATION STUDY at “BANGLORE MILK UNION LTD"

Submitted in partial fulfillment of the requirement for the award of degree in Master of Business Administration submitted by MANOHARA D (USN: 12MBA61037) under the guidance of

External Guide: Mr. CHIKKAMATH

Internal Guide: Prof. DR. PREMALATHA

General Manager

Professor

BAMUL

School of Business

Jain University School of Business Bangalore

February 2013

1

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Company Certificate

Prof. DR. PREMALATHA Professor School of Business Jain University 2

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

CERTIFICATE

I certify that this Organisation Study carried at “BAMUL” submitted to School of Business, Jain University in partial fulfillment of the requirements for the award of Master of Business Administration, is a record of independent study carried out by Mr. MANOHARA D under my supervision and guidance. This work has not been submitted previously to any other College/University.

Bangalore Date: 9/02/2013

Prof. DR. PREMALATHA Internal Guide

3

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

College Certificate

DECLARATION

I declare that the “Organisation Study” undergone by me at BAMUL Ltd, Bangalore, under the guidance of Prof. DR. PREMALATHA, Internal Guide, School of Business, Bangalore is an independent work. The report has not been submitted earlier to Jain University or to any other Institution. The matter in this report is based on the information collected by me at BAMUL LTD under the guidance of MR. CHIKKAMATH DEPUTY Manager, External Guide.

The report is towards the partial fulfillment of the requirement of the Master of Business Administration course of Jain University.

Date:9/02/2013

MANOHARA D

Place: Bangalore

(USN: 12MBA61037)

4

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be incomplete without mentioning the people who have made it feasible with constant guidance and encouragement served as a beacon light and crowned our efforts with success. I consider it as my privilege to express through this report a few Words of profound gratitude and deep regards to all those who guided me in completing this project. I would like to thank MR. CHIKKAMATH deputy Manager , BAMUL for his unvarying and valuable guidance throughout the project work. I sincerely thank Dr. PREAMLATHA lecturer, M.B.A department for supporting and guiding me as an internal guide. Last but not the least, it is my proud privilege and I have to search words to express my indebtedness to my parents and all my friends who helped to complete the project. This has been a great learning opportunity for me and I am highly indebted to the above people for giving this opportunity.

MANOHARA.D

5

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

6

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

INDUSTRY PROFILE

Historical background of the industry: In Karnataka, on June 4 th 1975 four milk unions were started in B a n g a l o r e , M ys o r e , T u m a k u r a n d H a s a n . K a r n a t a k a D a i r y D e v e l o p m e n t Corporation got Re-named as Karnataka Milk Federation. In June 1974, an integrated project was launched in Karnataka to restructure and reconcile the Dairy Industry on the Co-operation principle and the laid foundation for a new direction in Dairy Development, the Work Bank aided Dairy Development projects during in 1975.Initially the project was covered 8 southern Districts of Karnataka and Karnataka Dairy Development Corporation was set up to implement the pr oject. The Multi Level activities were set up with Dairy Coo p e r a t i v e societies at gross root levels, milk union at the middle level as an apex body. Vested with Dairy Development activities continued under operation Flood-11, the activities were extended to cover the entire state except coastal taluk so U n i o n K a r n a t a k a D i s t r i c t . T h e p r o c e s s o f D a i r y d e v e l o p m e n t w a s continued in second phase from April 1984, Karnataka milk Federation came in to existence Objective: Karnataka Milk Federation is a Co-operative. Apex body in the state of Karnataka for representing Dairy Farmers Organizatio n a n d a l s o implementing Dairy Development activities with the following objectives. •P r o v i d i n g a s s u r e d a n d r e m u n e r a t i v e M a r k e t f o r t h e e n t i r e M i l k Pr oducers. •Providing Hygienic Milk to Urban Consumers. •To build village level institution in Co-operation sector to manage the Dairy activities. •T o e n s u r e M i l k P r o d u c t i o n f o r s e l f e m p l o y m e n t a t v i l l a g e l e v e l preventing migration to Urban Areas introducing cash economy and opportunity for regular Income. •The philosophy of Dairy Development is to eliminates middle men and organize institution to be owned and managed by the milk producers themselves, achieving economics of scale to ensure maximum return to milk producers at the same time providing wholesale Milk at lowest possible price to urban Consumers. 7

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

•To eliminate the problems of duplicating and over lapping. •To expand the market. The complex network of Co-operative organization should build a bridge between millions of consumer and Milk producers. On the other side to achieve a socio economic revolution within the state. Management The management K.M.F is of “pattern, Co-operative activity that is called as three tyre system. •Primary level cooperative societies (milk producer‟s co-operativessocieties). •District level milk Union. •State level Federation. Market share of nandini milk and milk products: The market share of Nandini milk and production in the West Bangalore City is shown as below: • Nandini Milk …………. 90% •Private Dairy …………. 10%

Competitors of the Nandini milk •Good morning •Heritage •Dodla •Arogya •Gomati

8

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Perspective plan for 2008: Karnataka Milk Federation Union and National Dairy Development Board are formulating the program to challenges after liberalization deli censing the Dairy sectors to develop and strengthen Dairy C0-operative movement in the following areas: •Quality Assurance Programme • National information Networking •Productivity Enhancement •Co-operative Business.

PEST ANALYSIS • Indian Dairy Industry is at cross roads • Industry strongly dominated by the government sector and working in co-operative mode is going to face keen competition from private sector • Co-ops performed well in some states, but in many states, they are functioning as parastatals, weak representative of farmer interest • Currently co-op prices serve as a bench mark for pricing of dairy • Weak co-ops competing with private sector may severely affect farmer interest • Growth potential is tremendous, can the farmers benefit from

1. POLITICAL Bangalore diary is under the guidelines of kmf administration and financial matters. Labors are paid according to 6th pay commission and also provided epic facilities according to state government. Bamul even gets grants from government. The land is owned by Bamul on rent basis from the government

2. ECONOMICAL Since milk is a daily use product the demand will be always high and also Bamul has the major portion of market sales are always at high. And the prices vary according to government taxes and availability raw milk

9

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

3. SOCIAL Since most of employees are from nearest area culture differences is not there. Every employee is provided uniform to feel the sense of unity . There are all types of age groups in the organization and mostly elderly employees are in a higher job designation

4. TECHNOLOGY Milk is being test in every part of the process starting from procurement to dispatch through automated machines such as lactometer. There are 15chilling unit, 3bays, 4pasterisation unit, 4silos and more 10 engineers to take care of the machines. The process starting from procurement to packaging is fully automatic with only 4people controlling the whole process

COMPANY PROFILE BANGLORE MILK UNION LIMITED Is the biggest co-operative milk union in south India. ) was established during 1975 under Operation Flood II by keeping “Amul” as its Role Model. Is fully owned and managed by milk producers of Bangalore rural and Bangalore urban districts of Karnataka state

BACKGROUND 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. Later in 1962, The Bangalore Milk Supply Scheme came into existence as an independent body. BAMUL is spread over 52acres and had initial capacity of 50000lts a day. BAMUL is certified ISO 9001-2000 and HACCP (IS-15000).

VISSION AND MISSION To eliminate middlemen and organize institution owned and managed by milk producers, by employing professional. Achieve economies of scale of rural milk producers by ensuring max returns and at same time providing wholesome milk at reasonable price to urban consumers. Hence the margin between the procurement prices selling price is lowest in the country. In

10

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

recognition to is work national productivity council of India has conferred „BEST PRODUCTIVITY AWARD‟ 5 TIMES.

OBJECTIVES -To ensure assured and remunerative market round the year for the milk produced by the farmer members. -To ensure assured and remunerative market round the year for the milk produced by the farmer members. -To ensure provision of inputs for milk production, processing facilities and dissemination of know how.

SWOT a) Strong customer base: BAMUL enjoys a very strong “customer base” in their domestic market. Products manufactured by BAMUL are known for their quality, quality perception of customers regarding BAMUL‟s products has earned them a very strong customer base. They have captured almost 70% of the market share in the domestic market. B) Competitive Product line: Products offered by BAMUL are only one of its kinds in the domestic market; its competitors have only a few substitutes to offer in terms of variants and quality of products. d) Automated Production: BAMUL has an automated production process; it helps them to\drastically reduce the cost of production per unit due to High-end technology production process. WEAKNESS d) Automated Production: BAMUL has an automated production process; it helps them to drastically reduce the cost of production per unit due to High-end technology production process.

OPPORTUNITIES

11

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

BAMUL can explore other avenues of Dairy farming (Honey Culture), since it already has a strong supplier base. It can train suppliers in “Honey culturing”, and later market the new product “Honey” under its own brand name “Nandini”, since it has its own value and customer perception. In the domestic market Honey available is provided by Companies such as “Dabur”, so Nandini could be made available at a cheaper rate owing to lesser Cost of Production. Major market share could be obtained since Nandini, the brand name is well known in the local market.

Threats faced by BAMUL: Competitors of BAMUL have started to access the supplier base of BAMUL by offering more prices and have been successful in luring some of the farmers. in to give the milk, it is the one threat faced by BAMUL.

PRODUCT

Types of Milk & Milk products marketing by Bamul 1. TONED MILK = 3.1 FAT, 8.50 SNF 2. DOUDLE TONNED = 1.6 FAT, 9% SNF 3. HOMOGENISED COW MILK = 3.6 FAT, 8.50% SNF 4. SAMRUDHI = 6% FAT, 8.50% SNF 5. SHUBHAM = 4.6% FAT, 8.50% SNF 6. SKIMMED = 0% FAT With a total of 9lakh Ltrs per day

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 gms & 1 Kg packs. Nandini Butter Rich, 12

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

smooth and delicious. Other Curd products are butter milk, set curd, sweet Lassi, yoghurt.11lakh ltrs per day

NANDINI GHEE A taste of purity. Nandini Ghee is made from pure butter. It is fresh and pure with a delicious flavour. Hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. It has a shelf life of 6 months at ambient temperatures. Available in 200ml, 500ml, 1000ml sachets & 15.0 kg tins.5tonnes a day

NANDINI BUTTER Rich, smooth and delicious. Nandini Butter is made out of fresh pasteurized cream. Rich taste, smooth texture and the rich purity of cow's milk, makes any preparation a delicious treat. Available in 100 gms (salted), 200 gms and 500gms cartons both salted and unsalted.4tonnes a day

NANDINI PEDA No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family. Store at room temperature approximately for 7 days. Available in 250gms pack containing 10 pieces each. 300kgs

SERVICES: 1. ARTIFICIAL INPUT SERVICE 2. ANIMAL HEALTH 3. ARTIFICIAL INSEMENATION 4. CATTLE FEED AND FODDER DEVELOPMENT 5. YASHWINI HEATH CARE SERVICE 6. CATTLE INSURANCE MARKET

13

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Milk is highly perishable product hence the area covered is very less and the market is small compared to other non-perishable products. 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. Given below are sales of Bamul from 2003-2012

Total Milk Sales (Avg. Ltrs/Day)

751506 666714

696942

620000 570000 448689

2003-04

484707

502000

2004-05

2005-06

531000

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

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.

14

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

MARKETING Departmental Hierarchy: Marketing department comprises of departmental head and further divided into two categories and further into officers then to superintendents. Salesmen and dispatcher. The hierarchy is as under. MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

ZONAL MANAGER

SUPERINDENTENT

MARKETING ASSISTANT HELPER

FUNCTIONS     

To capture the markets share. To collect information about revenue. Maintain sales and other accounts. To attain major market shares. They conduct the market survey to analyze the consumers‟ feedback of their product.

Market Share of BAMUL: 60-70% of market share- Nandini. 05-10% of market share- loose milk vendor. 10-20% of market share- other private brands

15

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Marketing Strategies adopted by BAMUL: “Procure more, Produce more, Sell more, and Earn more” • By procuring and producing more BAMUL achieves economies of scale which results in least cost distribution on each unit sold. • It raises consumer awareness for Nandini by pamphleteering, raising health issues related to consumption of adulterated milk and soon. • 981 no of retailer ship during 2011-12 75 no till October 05 were commissioned. • As per the demand for milk and milk products available throughout the day, 26 numbers of Franchise Outlets, 19 no of parlors are made functional. • For the retailers who were not in a position to install chest cooler insulated boxes numbering around 900 were distributed during the said period. Milk and milk product were preserved in the insulated boxes and sold. • Around 40 numbers of 400 liters capacity chest coolers under the cold chain development has been distributed

Promotional Activities:• Door to door campaigning:- This is done through the sales force team by questioning the consumers, reasoning them, issuing brochures etc. This is carried on periodically. • Organizing meeting:- Organizing meetings is important public places and inviting important period like doctor, professional, government officers etc. • Visit to Non -Govt. Organizations:- Visiting to NGOs and creating awareness about the product and its benefits, inviting them to the plant and showing them the production procedures. • Visit of school children to the dairy and promoting their products through them by issuing samples. • Inviting the consumer forum and creating awareness to them. • Participating in trade shows, exhibitions and educate people • Through advertising in major media‟s like T.V., News Papers, hoardings etc… • It seals its product under the brand name „ NANDINI‟ HUMAN RESOURCE FUNCTION Bamul does not exactly have HR department as such but all the HR functions are carried out by administration department.

16

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Classification of employees • Permanent employee: A permanent employee is one who is on the permanent rolls of the union against the specific cadre and enjoying all such benefits as specified under the regulatory rules of BAMUL or all such benefits which may be excluded from time to time. Employees who are recruited are deemed to be permanent employees subject to declaration of probation and confirmation by an order. • Probationer employee: A probationer employee is one who is provisionally employed to fill a permanent vacancy in a post for a period of probation which will not exceed 2 years on aggregate and whose name is entered on the rolls of the probationer employees • Apprentice: It means a learner who is engaged to undergo apprenticeship training and who is paid a stipend and whose terms and conditions of apprenticeship are governed by the provisions of The Apprenticeship Act of 1961. The Union Dairy is not obliged to employ him on completion of his apprenticeship period Functions: 1. Recruitment of candidates 2. Selection of best suited and right person 3. Training and development of employees 4. Framing of rules 5. Creating a good working environment 6. Motivating the employees to work hard 7. Maximizing the performance of employees 8. Maintenance of records 9. Maintenance of industrial relations 10. Employee Service and Benefits 11. Compensation

Recruitment Procedure of appointment • If a post is to be fulfilled by competitive examination, then after giving adequate publicity in the leading Kannada newspaper and one of the national dailies (as the appointing authority may determine). The appointment procedure will be carried in the order of merit subject to reservation in Rule 3.6 from the list of candidates prepared by the selection committee or expert panel. • If it is by selection, after giving such adequate publicity in leading newspaper at least one in Kannada and English to the recruitment as the appointing authority may determine in the order of merit 17

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

• In case of the post being fulfilled by internal promotion from its own staff it is done by a selection of a person on the basis of merit and suitability in all respect

HR Practices of BAMUL: The following are the HR practices of BAMUL: 1. House rent Allowance:It is allowance provided to all permanent employees at the rate of 13% of basic pay. 2. Conveyance Allowance:Companies provide conveyance facilities to each employee from the place of residence to the place of work. BAMUL also provides this allowance because it is situated 11 km away from Bangalore. Conveyance allowance of Rs. 225/month for persons owning Scooters/Motorcycle, Rs. 500 for moped whereas Rs 1000 3. Provident and Pension Fund:This contribution is equal to that of employee contributions i.e. 12% of salary and it is divided between provided and pension fund as 8.33% and 3.67% respectively. The total accumulated is balanced in the individual PF account and is paid to employee at the time of his retirement or on his leaving the service. In the event of the death of the employee accumulated balance is paid to his legal heirs 4. Gratuity:The amount of gratuity payable is generally 15 days average salary. For this purpose salary includes only basic pay, DA and completed service. 5. Compensation for disablement:The employees are covered under the group saving Life Insurance scheme. Who contributes to the fund are as follows: • Below SDC - Rs. 30 • Above SDC - Rs. 60 • Below superintendent - Rs. 90 • Above superintendent - Rs. 120 • Out of this 10.5% is kept for insurance

18

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

• In the event of disablement of any nature, insurance company will compensate as per the terms and conditions 6. Leave Facilities:All permanent employees as on the date of settlement will be given leave facilities as mentioned below. • Earned leave • Casual leave • Commuted/half day leave • Special disability leave • Maternity leave 7. Medical Reimbursement:Contribution from employees is 1.75% (except washing allowance and conveyance allowance), Rs 25 from management. Total 6.5% should be remitted to ESI within stipulated time of 21 days. If an employee becomes fully handicapped, company will provide him Rs. 170/month depending upon the salary scale. If an employee earns less than Rs. 25 then management contribute Rs. 25 to ESI

Training and Development: At BAMUL, training and development is an ongoing process. The workers are trained to operate machines, reduce scrap and avoid accidents whereas the supervisors, managers and executives are provided training which will enable them to grow and acquire maturity of thought and action. The training and development efforts at BAMUL are designed to help the employees satisfy their personal goals – through higher level of skills and competencies; facilitate higher contribution at their present jobs and to prepare them for the next level of the organization. The employees who are deployed for training are considered to be on duty and they get the TA and DA as per the rules of BAMUL. Normally the training programs conducted at BAMUL are:       

Workshop on good quality Ghee. Computer Basics. ISO Quality System Awareness Programme. Workshop on Sale Tax. Quality Audit Programme. Marketing management. Materials management. 19

An organizational study at BAMUL     

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Workshop on First aid. Reclair Grades for Milk Packaging Application and Food Laws. Total Energy Management Programme. Marketing and Brand Management. Improving sales effectiveness.

20

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

ORGANISATIONAL STRUCTURE

21

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

FINANCE DEPARTMENT MANAGER

DEPUTY MANAGER

ACCOUNTS OFFICER

SUPERINDENTENT

ACCOUNT ASSISTENT 1

ACCOUNT ASSISTANT 2

HELPERS

Functions: The main functions of financial department are as under: 1. To manage cash. 2. To manage bills. 3. To manage transportation bills. 4. To manage pay bills. 5. To manage accounts. 6. Prepare IBP 1. Cash: There are two cash counters in the financial section, I) Collection of sales proceeds counter. 22

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

II) Cash counter I) II)

III)

Collection of sales proceeds counter: This is for cash collection of sales proceeds of milk and milk products. Cash remitted by challan system from various milk distribution roots for sale. A receipt is passed for the net amount collected from each of the distribution root salesmen and this is being recorded in a on-line account. This entire amount collected by the end of the day is remitted to bank the same day to the current account of the milk union. Cash counter:

Another cash counter is for handling impressed cash and cheques. Impressed cash means amount required for meeting various payment. Receipts are being issued for collection of cash towards receipts of EMD (Security deposit repayment of advance drawn and such other outstanding) all these things are recorded in a cashbook called petty cash book. This cashbook is being closed at the end of day a verified by accounts office\Asst. Manages finance. Cheques are also being drawn for payments of bills whenever payments are required through cheques. For receipt of any cheques received from outside official, general receipts are being passed in cash counter using tally ERP9. 2. Bills: Bills are being received from various suppliers and usually the purchase section after getting the Material Receipts Information (MRI) from stores duly certified for quality and quantity, sends bills to finance section in the related files and these bills are processed and entered in the control register and after scrutiny from pre-auditors bills are put up for passing before MD through Assistant Manager Finance. After the approval of MD the cheques are drawn in the name of the parties. File with entries of cheque No. and a copy of the voucher is returned to purchase section / to the concerned section. And the payment vouchers are accounted in com 3. Transportation Bills: Following are the types of transportation bills: i) Procurement Transportation Bills (PTC) ii) Distribution Transportation Bills (DTC) iii) Mobile veterinary root bills iv) Cattle feed transportation bills v) LN2 transportation bills (Liquid Nitrogen) vi) Hire vehicle transportation bills 23

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

4. Pay Bills: Attendance data are being received from time office as per the punch card entries, further the attendance of chilling center staff and field staff are being received from concerned section once in a month duly certified by section needs. Based on these attendance extracts pay bill of all the 950 employees of the milk union are being prepared through computers and salary is being distributed through Canara Bank main Branch, Syndicate Bank of BDCC Bank by way of crediting the account of respective employees in the Bank. These are various heads under which salary recoveries are made such as Employees Provident Fund (EMF), Employees State Insurance Scheme (ESI), Professional Tax, LIC, GSLIS (Group Saving Linked Insurance Scheme), pay advance, Bank loan and such other deductions under about 45 account heads. These salary recoveries are being sent to respective departments such as Regional PF commissioner, ESI office, Professional Tax Office, LIC of India, different banks where employees avail loans through cheques. The account section prepares salary. 5. Accounts: The functions of account section are: • To maintain record of day-to-day transactions, update entries in computer. • Prepare monthly nominal accounts. • Prepare annual financial statements such as receipt and payments, trading, and P/L a/c and balance sheet and also to produce the same to statutory auditors and get it audited

Sources of Finance: The main source of finance is sales realization (Retained Earnings). Sales are purely on cash / cheques basis. As the nature of the product is highly perishable i.e., that milk and other milk products. Hence because of this the product needs to be immediately sold to the end users, as result money is generated immediately and routinely. Hence this forms the only source and can be classified as short-term source finance. The other products of milk and as their perish ability period is little more i.e., for a products of 3-4 months and sales are realized and money gained out of it can be classified as long-term source of finance. Sometimes they even get grants from the government. The Union had an approximate turnover of Rs. 692.82 crores in the year 2010-11 as against Rs. 527.76Crores for the year 2009-10.

24

An organizational study at BAMUL

1282.96

1278.94

1157.389

1158.39

1031.37

1033.57

1019.655

1008.914

1200

999.645

1400

1000.05

1600

1157.11

Share Capital (in Lakh Rupees)

1494.04

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

1000 800 600 400 200 0 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2010-11 2011-12

50824.00

45205.00

37452.00

38020.55

31345.89

27873.76

25323.43

23232.00

22072.93

22536.30

19776.20

17125.33

Annual Turn-over (in Lakh Rupees)

69828.49

19992000

1997-98 1998-99 1999- 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2011-12 2000

25

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

295.22

286.21

279.32

159.00

343.79

327.48

357.3 51.29

35.73

73.93

228.52

237.58

387.52

574.83

Net Profit (in Lakh Rupees)

1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2006- 2007- 2008- 2009- 2010- 20112000 01 02 03 04 05 06 07 07 08 09 10 11 12

OPERATIONS MILK PROCUREMENT The Milk produced by 99405 farmers at village level will be collected every day morning and Evening at DCS. Under Clean Milk Production program, to maintain the freshness & quality of the milk 121 Bulk Milk Coolers covering 377 DCS of Total Capacity 1,92,802 ltrs were installed at DCS level. During the year the Unions daily average milk procurement is 9.32 Lakh Kgs, which works out to be 551 kgs per day per DCS. The milk procurement has increased by 2.15 % when compared to the last year.

26

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Avg. Milk Procurement (Kgs Per Day)

932572 828684

805618 758021

713047

546940

557508

2001-02

2002-03

710082

729564

2007-08

2008-09

594079

2003-04

2004-05

2005-06

2006-07

2009-10

2010-11

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. 19.06 for every Kg of Milk supplied to the Union, which is 80% of total cost of production

Ret. Margin 2%

Sal & Admin 7%

Misc 0%

Int & Bank Chrgs 0%

Packing 2% Process 9%

Milk Purchase 72%

Transport 1%

27

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Milk collected at DCS will be transported to Chilling Centers, through 102 Milk Procurement Can Routes, by traveling 16,775 KM‟s every day. 23 Bulk Milk Cooler (BMC) Routes are also in operation, which collects milk from 121 BMC centers of 373 DCS directly transported to Bangalore Dairy through insulated tankers.

Cost consumption at BAMUL; Transportation 4% Process 5% Packing 3% Retail margin 3% Sales & administration 6% Miscellaneous 5% Interest and bank charges 2% Milk purchase 72%

QUALITY CONTROL DEPARTMENT Functions: The main function of quality control section is to control the quality and produce best quality products. In Q.C section, the milk is tested before processing and even after processing. Before processing the milk, it is tested for adulteration, fat content in the milk. Milk 8% is rejected and above 8% of fat is accepted. After the mi8lk is processed again, it is tested for bacteria fat contents, acidity etc… Then the reports are prepared after conducting tests. Then these reports are further submitted to KMF for further clearance and approval. If my defects are found, then KMF notifies and recommends for further better performance

Quality Control Techniques Adopted: The various tests conducted in order to maintain the quality of milk are as under: 1. Garber Test: - To know the fat content present in the milk. It is mixed with sulphuric acid. (MILK + H2SO4) 2. Milk Test: - To know the fact content present in the milk through electronic device. 3. Lactometer: - To know the stability of the milk and is conducted by mixing the milk with water and using lactometer, stability is tested. If milk water quantity is more in the milk the lactometer will immerse inside. 

MBRT test and methylene blue radiatic Test.



Acidity Test. 28

An organizational study at BAMUL 

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

PFA Test and Prevention of food Adulteration Test.

PROCEDURE

EACH TANKER IS WEIGHTED AT THE WEIGH BRIDGE & THE SAMPLE MILK IS TESTED IN ELECTRONIC FAT TESTER

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

AFTER PROCESSING, THE MILK IS CONVERTED INTO 4 TYPES OF MILK I.E. FCM, TM, CTM AND HCM

HMST WHERE PASTEURIZED MILK IS STORED

CHILLING OF MILK AT 5 DEGREE IN PASTEURIZE

NEXT THE MILK IS SENT FOR PACKING SECTION FOR PACKAGING.

DISPATCHING SECTION, MILK IS KEPT AT 5 DEGREE C IN THE COLD

A Study of the organization design A review of choice in design is the determination and start of the general approach and strategy adopted for a particular organisational study. The research has undertaken a comprehensive plan of the sequence of operation for the descriptive study to achieve the research objectives with the arrangement of condition for collection and analysis of data. Primary Data :  This is the process where first hand information was collected. The research derives it after completing certain activities. Primary data is collected directly from the dairy. SECONDARY DATA :

29

An organizational study at BAMUL 

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

The Secondary Data is readily complied data from statistical statements and other sources. The data can be obtained from either published or non published sources. Structure:

The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided and integrated. Since BAMUL is a co-operative sector unit. The structure of the organization is democratic. Major decision however is taken is at top-level management of the company.

MIS SECTION . All the activities have been controlled by system in BAMUL. The whole organization is automated & computerized. There are 2 types of software, operating in BAMUL. • ERP-enterprise Resource planning. • Production process software. The ERP is mainly used for business process. This software is named as DOIS- Dairy operating information system. DOIS is in ORACLE & fronted is D2K that is developer 2000 & backend tool is my SQL data base. Here the modules covered are finance, sales, marketing, & production & engineering. The whole organization is 100% computerized & they have RAS- Rockwell Automation software & PLC- programmable logic controller‟s soft ware. They have IBM windows server & LAN- Local Area Network connection. There are 130 systems in the union & even chilling centers & even at societies are fully computerized. Through online they will transfer data to chilling centers through ORACLE software. They have AMCU- Atomized Milk Cleaning unit for cleaning purpose.

BAMUL at Glance An ISO-22000:2005 & ISO-9001:2000 Certified Procurement & Input Inhabited Villages

2,611

Milk Producer Members

3,25,854

Dairy Co-operative Societies

1,708

Milk Procurement Routes + BMC Routes Artificial Insemination Centers

93+13 Single

259 30

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

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

Mckinsey’s 7S Model Let's look at each of the elements specifically:  Strategy: the plan devised to maintain and build competitive advantage over the competition.  Structure: the way the organization is structured and who reports to whom.  Systems: the daily activities and procedures that staff members engage in to get the job done.

31

An organizational study at BAMUL 

  

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the employees working for the company.

1. Shared Value: It means the central belief and attitudes of the organization. The core values of the organization is as follow a. Leadership b. Responsive and Fairness c. Credibility Employees have to work using these values and employees are evaluated on these basis. 1. Strategy: It means the plans to reach the target audience and plans advised to maintain and build competitive advantage. The strategies are used by the organization are as follows. a. Protect and penetrate b. Data driven 32

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

c. Extend and diversity

Structure. Top level managers are act as facilitators of the resources to the team of employees motivate them to accomplish organization goal with achieving personal goal.

2. Systems: It means the procedures, processes and routine that characterizes how important work is to be done. Organization has fixing a target of work to every team which has to be performed by the employees in the supervision of the team leader. Performance appraisal is done through self-appraisal and then team managers will rate their subordinates and totally it is done according to the level of hierarchy. 3. Staff: top level the age of employees are more than 45 years.

4. Style Employees have to report to their team manager about their work and solve their problems by discussing with the group. 5. Skill: Employees who is working in the organization has following skills a. Leadership b. Programming

33

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

FINDINGS BAMUL is serving the rural region and helping for their upliftment, by way of procuring milk through poor farmers through its formed societies and paying them fair returns. It is contributing for economic up liftment of farmers.

better quality milk and milk products. L is earning profit year after year and it is not confronting any financial problems.

total quality maintenance (function) has got its own quality control department with fully equipped laboratory and equipment that help detecting any adulteration or any such other defects.

customers bacteria free and balance nutritious milk (product augmentation)

legal awareness about social and economic upliftment among rural people, especially women. The whole system is so equipped that hygiene is maintained in every part of production

34

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

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.

35

An organizational study at BAMUL

Formatted: Left, Border: Bottom: (Thick-thin small gap, Accent 2, 3 pt Line width)

BIBLIOGRAPHY 

36