Project Bamul

An Organizational study at BAMUL

A Report On the Organizational System and Organizational Progress of Bangalore Milk Union Ltd (BAMUL)

Submitted for the partial fulfillment of Master of Business Administration By JAGADEESH K.V II semester SURANA COLLEGE

Under the esteemed guidance of Dr. APARNA RAO (Internal Guide) SURANA COLLEGE

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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 S. Sundaram Managing Director, BAMUL for his unvarying and valuable guidance throughout the project work. I sincerely thank Prof. H. Appannayya, coordinator,M.B.A. Department for his precious support, and, Dr. P. Aparna rao 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.

JAGADEESH .K.V

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INDEX CHAPTER

CONTENTS

1.

INTRODUCTION

2.

MARKETING DEPT

3.

H.R.M DEPT

4.

M.I.S DEPT

5.

FINANCE & ACCOUNTS DEPT

6.

PRODUCTION DEPT

7.

PROCUREMENT & INPUT DEPT

8.

QUALITY CONTROL

9.

PURCHASE DEPT

10.

STORE DEPT

11.

SWOT ANALYSIS

12.

CONCLUSION

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CHAPTER-1 COMAPANY PROFILE (BAMUL) BANGALORE MILK UNION LIMITED:Bangalore milk union (BAMUL) is a biggest Co-operative 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 1965, the union is constantly striving to further the dairy development and marketing activities in its milk-shed area. BACKGROUND:On January 1st 1958 a pilot scheme under Department of animal husbandry, Govt of Karnataka was started to cater, Veterinary Hospital’s and milk process facilities at National Dairy Research Institute (NDRI). In 1962, the Bangalore Milk Supply Scheme came into existence as an independent body. Bangalore Dairy, a joint venture of UNICEF, Govt of India and Govt of Mysore was dedicated to the people of Karnataka State on 23rd January 1965 by honorable 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. This Dairy was handed over to Karnataka Dairy Development Corporation

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(KDDC) in December 1975. As a pert of Rural Milk Scheme of Mysore, Hassan and Kudige under Operation flood - II and then transferred to Karnataka Milk Federation (KMF) in May 1984 as a successor of KDCC. To cater to the growing demand for milk by the consumers of the Bangalore City, the capacity was introduced to 1.5 lakhs liters per day under the Operation Flood - II during 1981 and later increased to 3.5 lakhs liters per day under Operation Flood - III during 1994. The Bangalore Urban and Rural District Milk Producers Co-operative Societies Union Ltd., (BAMUL) who has established in the year 1975. The milk-shed area of the Union comprises Bangalore Rural and Bangalore Urban Districts, having 2611 revenue Villages. The Union has organized 1547 Dairy Co-operative Societies (DCS) in 2037 Villages, thereby covering 78% of the total villages in these 2 districts. In these DCSs, there are 3,09,577 milk producer members. Among them 91,746 members are women and 56,000 members belongs to Scheduled Castes and Scheduled Tribes. As per the policies of the National Dairy Development Board (NDDB), Bangalore Dairy was handed over the Bangalore Milk Union (BAMUL) on 1st September 1988. The Union is capable of processing the entire milk procured, by timely implementation of several infrastructure projects like commissioning of Mega Dairy, new chilling centers and renovation of product block. BAMUL has been registered under MMPO by Central Registration Authority. Today, the Union has become biggest Milk Co-operative Union Surana college

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is Southern India. BAMUL has been certified ISO 9001 - 2000 and HACCP (IS - 15000) for quality management and Food Safety System. The philosophy of this co-operative milk producers organization is to eliminate middlemen and organise 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 organization should build a strong bridge between masses of rural producers and millions of urban consumers & achieve a socio-economic revolution in the village community. Bangalore Milk Union is offering most remunerative purchase price, which is considered as one among the best prices in the country, to its producers. Even though the Union is offering the best prices to the milk procured, the swelling price of milk and milk products to consumers is the lowest in the country. Hence, the margin between the procurement price and sales price is one among the least in the country. This cost competitiveness was achieved due to large-scale milk procurement, processing

and marketing, supported

by

effective

and efficient

management systems. In recognition 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.

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Organization Status: The member producers and there 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 operations. Hence the maximum importance has been given to their development. The union is making concerted efforts over the years to organize DCSs in more and more villages of the two districts in the milk-shed area. Up to now, the union has organized 1548 DCS, functioning in 2037 villages, thereby covering 78% of the total villages. Year

Functioning DCS

1995-96

918

1996-97

994

1997-98

1055

1998-99

1119

1999-2000

1165

2000-01

1266

2001-02

1301

2002-03

1388

2003-04

1433

2004-05

1483

2005-06

1547

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Functioning DCS

Functioning DCS

19 95 19 9 6 9 19 7-9 99 8 -2 00 20 0 01 -0 20 2 03 20 04 05 -0 6

2000 1500 1000 500 0

Importance is given to enroll more and more producers in the villages as members of DCS. While enrolling these members, several years, more emphasis is being accorded to enroll increasing 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 active participation of women and weaker sections of the society in all the Dairy development actives of the Union. They have become the mainstay of all the developmental program of the union. This has resulted in the accrual of economic benefits of these programs to the most vulnerable sections of the rural economy.

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100% 80% 60% Woman Members

40%

Total Membership

20% 0% 19 19 19 19 19 20 20 20 20 20 20 95- 96- 97- 98- 99- 00- 01- 02- 03- 04- 0596 97 98 99 00 01 02 03 04 05 06

MILK PROCUREMENT The daily average milk procurement of BAMUL for the period of 2005-06 (till Dec 2005) was 8.29 lakh kgs, which works out to be 535 kgs per day per DCS. Curing the year the milk procurement touched a peak of 8.95 lakh kgs per day. In Milk Procurement, Bangalore Milk Union Stands FIRST in Karnataka State and SIXTH position in the Country. M ilkP rocurem ent (A v g. K g'sperday) 900000 800000 700000 600000 500000 400000 300000 200000 100000

8 9 9 -2 0 0 0 2 0 0 1 -0 2 2 0 0 3 -0 4 2 0 0 5 -0 6

1 9

9 7 -9

1 9

1 9

9 5 -9

0

6

M ilkP rocurem ent (A v g. K g'sperday)

BAMUL is offering the most remunerative milk procurement price to member producers. The operational efficiency is reflected on procurement Surana college

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prices paid to the member producers. The average milk procurement price paid during the year was Rs. 9.31 for every Liter of Milk supplied to the Union. Which is 72% of total cost of production. Milk collected at DCS will be transported to Chilling Centers, through 93 Milk Procurement Routes, by traveling 14,738 KM’s every day. 5 Bulk Milk Cooler (BMC) Routes are also in operation, which collects milk from 35 BMC centers of 68 DCS directly transported to Bangalore Dairy through insulated tankers. Milk Purchase Int & Bank charges Misc Sales and Admin Ret.Margin Packing Process Transport

72% 2% 5% 6% 3% 3% 5% 4% Milk Purchase Int &Bank charges Misc Sales andAdmin Ret.Margin Packing Process Transport

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OBJECTIVES OF THE UNION:• To organize Dairy Co-operative Societies at village level and dissemination of information like good dairy husbandry and breeding practices; & clean mild production through Extension Services. • To provide assured and remunerative market for the milk produced by the farmers members of the union. • To provide technical inputs like veterinary services, artificial insemination, supply of balanced cattle feed and seed material etc to milk producers. • To provide hygienic and quality and milk products at competitive rates to urban consumers. • To facilitate rural development by providing opportunities for selfemployment at village level, preventing migration to urban areas introducing cash economy and opportunity for steady income to milk producers. • To provide competitive prices to the milk produced by the farmer members of the union in order to improve the standard of living. • To provide appropriate medical facilities to the cattle in order to maintain the health condition of the cattle. • To provide quality milk and milk products to urban consumers at competitive prices.

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Principles:The formal principle of the Bangalore Milk Union is bound to get nationwide best place in milk production. In order to achieve the same, the union follows the under listed principles. • To help its member associations financially and socially and to improve their works towards making a profile business. • To adopt modern technology. • To provide the best service to the customers and the milk producers through services and dedication of employees union. MISSION: “Ushering rural property in the lives of members of milk producers.”

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Mile Stones of BAMUL: •

Bangalore Co-Operative Milk Producers Societies Union Ltd was established on 16th November 1976.

•

After the bifurcation of the above union, into two separate union for Bangalore Districts (Urban and Rural) and Kolar District, Bangalore Urban and Rural District Co-operative Milk Producers Societies Union Ltd (BAMUL) on 23rd March 1987.

•

Bangalore Dairy was taken over by BAMUL on 1st September 1988.

•

MMPO-1992 Registration No 42/R.MMPO/93 dated 7th June 1993 renewed on 13th May 1999.

•

Bangalore Mega Dairy started functioning on 17th December 2000.

•

Bangalore Dairy ISO 9001-2000 certified by SAI Global, a reputed Australian based Company on 19th February 2003.

•

Bangalore Dairy HACCP IS-15000 Certified by SAI Global, a reputed Australian based Company on 19th February 2003.

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KMF units in Karnataka: LIST OF CO-OPERATIVE MILK PRODUCERS SOCIETIES UNION  Bangalore Milk Union  Belgaum Milk Union  Bellary Milk Union  Bijapur Milk Union  D K Milk Union  Dharwad Milk Union  Gulbarga Milk Union  Hassan Milk Union  Kolar Milk Union  Mandya Milk Union  Mysore Milk Union  Shimoga Milk Union  Tumkur Milk Union

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Operational areas of BAMUL:BAMUL is playing a vital role in the district by covering 2037 villages of Bangalore district for their dairy activities. The philosophy of this Co-Operative milk producer’s organization is to eliminate middle men 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 organization should build a strong bridge between masses of rural producers and millions of urban consumers and achieve a socio-economic revolution in the village community. The BAMUL has 7 chilling centers in the district. They are: • Anekal Chilling Center-capacity is 60,000 LPD. • Byrapatana Chilling Center-capacity is 60,000 LPD. •

Doddaballapur Chilling Center-capacity of 40,000 LPD.

• Vijayapura Chilling Center-capacity of 1,00,000 LPD. • Solur Chilling Center-capacity of 60,000 LPD. • Hoskote Chilling Center-capacity of 1,50,000 LPD. •

Kanakpura Chilling Center-capacity of 50,000 LPD.

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Capacity of the Main Dairy:•

Milk processing capacity was 60,000 liter per day (LPD) at the time of establishment of the Dairy on 23rd January 1965.

•

Milk processing capacity was expanded to 1.5 lakhs LPD on 1st February 1981.

• Milk processing capacity was further expanded to 3.5 lakhs LPD during 1994. • Milk condensing plant-3 metric tons per day. • Spray Drying plant-5 metric tons per day. Seasons:In BAMUL whole year is divided into two parts depending on the availability of milk, viz; Flesh season Lean season Flesh season means where there is availability of grass and feed in plenty to animals. The animals will produce more milk and the supply of milk to dairy is also very high from farmers. When the procurement of milk reaches the peak level gradually, this period is known as flesh season. Normally sunless days are called lean season, because in these days there is no availability of sufficient grass to animals. It reflects in less quantity of milk production in this period.

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Products:BAMUL mainly does purified milk and milk products.

The

products that are produced by these units are:• Purified liquid milk • Pede • Kova • Curds • Butter and butter milk • Masala butter milk • Ghee • Set curd Workforce:BAMUL has 400 employees currently working in the organization. Number of employees:Permanent

0939

Men Employees

0831

Women Employees

0108

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CHAPTER – 2 MARKETING DEPARTMENT Marketing management in the analysis, planning, implementing and controlling of programs designed to bring about desired exchange of goods and money with target market needs and desires and using effective promotional activities to improve sale and attain the desired profit. Departmental Hierarchy:Marketing department comprises of departmental head and further divided into two categories and further into officers then to superintendents. Salesmen and dispatchey. The hierarchy is as under.

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Marketing Department: Manager (Marketing) Dy Manager (Marketing) Asst Manager (Marketing) Officers Suptd Marketing Asst-1 Marketing Asst-2 Marketing Asst-3 Helpers

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MILK AND MILK PRODUCTS MARKETING

Bangalore Dairy markets the following types of milk and milk products: • Toned milk – 3% fat & 8.5% SNF • Homogenized Toned milk – 3% fat & 8.5% SNF • Full Cream milk – 6% fat & 9% SNF • Nandini Goodlife (3.5% fat & 8.5% SNF) • Nandini Full Cream milk (12% fat & 9% SNF) • Nandini Smart (1.5% fat & 9% SNF) • Nandini Slim (with less than 0.5% fat & 9% SNF) • Curds • Peda • Sweetened Lassie and Sweetened Curds • Softy ice-cream • Flavored Milk • Spiced Butter Milk

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Objectives of Marketing Department • To provide utmost satisfaction to the end consumers. • Create market awareness and preference for Nandini. • Customer retention. • Balance the demand and supply of milk and milk products. • Organize and develop the market share of Nandini effectively. • Prepare sales budget. • Formulate strategies to compete with its competitors. • Always ensure the position of Nandini as the market leader in milk and milk products.

Functions:1. To capture the markets share. 2. To collect information about revenue. 3. Maintain sales and other accounts. 4. To attain major market shares. 5. To over competition. 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.

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Major competitors:The major competitors of BAMUL dairy are the loose milk vendors, but the other brands are • Heritage. • Arogya. •

Doodla. The Private brands are promoting these products through major

advertising, more retail margins, false information etc. 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 nos of retailer ship during 2004-05 75 nos till October 05 were commissioned. • As per the demand for milk and milk products available throughout the day, 26 numbers of Franchise Outlets, 19 nos of parlors are made functional. • For the retailers who were not in a position to install chest coolers 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.

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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”

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Channels of distribution:The main distribution channel comprises of numerous wholesalers in the city, then their agents and then the retailers. They supply them in shifts through their own vehicles.

BAMUL Dairy

Retailers

T.C.D

W.S.D

(Agents)

New Products:The new product of BAMUL is • Double Toned Milk • Masala Butter Milk • Set Curd Next planned products to be introduced are Lassi and Paneer.

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Other Services:The rates to the order for any occasions and supply without any extra cost or charges and deliver to the doorsteps of the customers. Marketing & Sales of BAMUL at a glance Number of Distribution Routes

147

Retailers

952

Wholesale Dealers

11

Franchisee Outlets

34

Milk Parlors

22

Day Counters

138

Transport cum Distributors

17

Number of Distribution Routes Retailers Wholesale Dealers Franchisee Outlets Milk Parlors Day Counters Transport cum Distributors

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CHAPTER -3 HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE TEAM General Manager (Administration) Deputy Manager (Administration) Assistant Manager (Administration) Personal Secretary / Time Officer / Public Relation Officer / Administration Officer / Office Manager / Labor Officer Administration Superintendent Administration Assistant-I Administration Assistant-II / Sr. Typist / Sr. Steno Administration Assistant III Helpers Peons

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HUMAN RESOURCE MANAGEMENT (HR Department) Human resource management is a management function that helps a manager to recruit, select, train and develop members for an organization. It is mainly concerned with the people dimension in organization. BAMUL has a very efficient HR – department also known as administrative department.

The activities are very limited.

But this

department carries out its functions effectively and maintains good employee and employer relations. 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 probationary employees.

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•

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 o n completion of his apprenticeship period.

Maintenance of service register/personnel files BAMUL maintains a service register of each employee mentioning all the service records and the below mentioned facts: • Particular of the employees. • Date of joining. • History of services. • Pay scale/increment/advance increment/stagnation increment. • Particulars of leave availed including leave encashment/maternity leave/miscarriage etc. • Particulars of record of rewards, praise, punishment or censure including suspension. • Place of position. • Name/age of family members of medical/HTC/LTC. • Permanent residence address and present postal address. • Details of training program undergone.

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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 12.Personal Audit 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 (same 3.6).

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• 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 respects. 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 where as Rs 1000 for other will be given. 3.

Shift Allowance:It is an allowance given to employees who work in shifts (except general shift). For 1st shift

Rs. 2.25 per day

For 2nd shift

Rs. 2.50 per day

For 3rd shift

Rs. 3.00 per day

Shift allowance should not be taken into account for the purpose of calculating PF, Bonus etc…

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4.

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.

5.

Gratuity:The amount of gratuity payable is generally 15 days average salary. For this purpose salary includes only basic pay, DA and completed service.

6.

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 • In the event of disablement of any nature, insurance company will compensate as per the terms and conditions.

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7.

Death Relief Fund:If any workmen of the factory at BAMUL expire, the company will declare no paid holiday. However, if the workmen decide to work on a holiday/weekly off and contributes that day’s wages to the deceased workmen’s family an equivalent amount will be granted by the company and thus total amount will be paid to the nominee of the workmen. The nominee under the payment of Gratuity act, PF act or legal heir, as the case may be considered for this purpose.

8.

Lease 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

•

Restricted leave

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9.

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.

10.

Washing Allowance:Washing allowance is also provided by BAMUL to each employee of Rs. 25. It will not be taken into account for this purpose of calculating PF, Bonus, ESI and Gratuity.

11.

Salary Advance:Workmen will be provided to avail this facility of festival advance for Rs. 2,000 each employee same has been recovered 10 equal installment of salary of employees. The other HRM practices practiced in BAMUL are as under:• Canteen facilities

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• Festival allowances • Cold storage allowance • Heat allowance • Attendance allowance • Special pay, allowances inactive

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 programmes conducted at BAMUL are:

 Workshop on good quality Ghee.  Computer Basics.

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 ISO Quality System Awareness Programme.  Workshop on Sale Tax.  Quality Audit Programme.  Marketing management.  Materials management.  Workshop on First aid.  Reclair Grades for Milk Packaging Application and Food Laws.  Total Energy Management Programme.  Marketing and Brand Management.  Improving sales effectiveness. Promotions:Promotion for the employees is given on seniority basis. For promotion, individual employee should have working experience of about 10 years in a particular department i.e. minimum 5 years. Trade Unions:There are two recognized trade unions.

It is formed by

workers for legal issues. • BAMUL employees union Participation of employees in decision-making is practiced in BAMUL. The participation of employees is encouraged only in the matter pertaining to employee disputed, wants and demand.

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CHAPTER-4 MANAGEMENT INFORMATION SYSTEM

INTRODUCTION: Organization has grown in complexity to levels, which are unprecedented, and information plays a vital role in holding together and coordinating organization. Information is the mortar that holds together the Edifice in the modern multi-product, multi-occupied, multi-location and multidivisional organizations. MIS department of BAMUL plays a very important and efficient role for the organization and its integration and co-ordination. The computerized office work is handled only in this department. They are working towards networking to make the whole organization Atomize and inter-connect different department like accounts, marketing, production, Administration section, etc. through the network of computers and for easy handling of the different department and smooth of computers and for easy handling of the different department and smooth flow of information. Objectives: 1. To integrate the different department of an organization. 2. To provide information for decision-making. Surana college

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different of management. 4. To keep informing about the activities in different of organization to the top-level management 5. To furnish information to board for decision-making. 6. To co-ordinate the different activities and help in smooth functioning of the organization.

Functions: The functions of MIS department in BAMUL are as under: 1.

To furnish monthly reports to KMF, NDDB, and others.

2.

Collect the data form internal and external sources compile it and store it as and when required by the organization.

3.

Providing information to the board and help in decisionmaking.

4.

Catering information to the different department and divisional heads as and when needed and help them in smooth functioning.

5.

To furnish computer related works such as milk billing, sales accounting, pay roll, GIS, DIS.

6.

Annual budget through integrated business plans.

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7.

Conducting monthly variance analysis.

8.

Day to day computerization activities of organization.

Sources of Information: The MIS department is divided into 3-iier system •

Village level societies

•

District Union

•

Federation

The information is needed to manage these tiers and even they cater information for further processing to MIS department. 1. Primary Sources: As the name itself suggests that the information in first hand. The primary sources for collecting information by MIS department are as follows. • Milk co-operative societies:Here the monthly information pertaining to societies activities like procurement, number of members in the society, women, SC/ST, and P and I position. This is collected through field officers called ‘Extension Officers’.

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• Information collected through the data provided by facilities/ services to farmers: • Veterinary • Services: Round the clock veterinary treatment is given and information about it is collected once in fortnight where the doctors visit once in a fortnight and treat free of cost. • Information about organized health camp for cattle for vaccination, artificial insemination for high breeds etc Information is collected in order to know how successfully it is working and its act9ivities conducted. • Supply of feed and fodder: Supply of feed and fodder to farmers at subsidized rate like seeds and sampling and some of these at free of cost. Hence the data about this is collected and further processed into information. • Training Facilities: Information about training facilities for societies, staff and also for producers is also collected. •

As the above information is collected by field officers

called “Extension Officers” in the first week of every month is submitted and this information is compiled and reports are

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formed and submitted to KMF. This forms the primary and external source of data, which compiled processes into useful information • Internal Source of Information: Information from different department and divisions and sections are collected. The different sections are •

Marketing Sections: - information about sales proceeds, sales

promotions, product line, demand and supply, competition, market trend etc. and about other marketing activities is being reported to MIS. •

Products

Section:

-

The

information

about

deferent

products

manufactured, this production, different types, quality, supply to the market, their price etc. is being reported to MIS. •

Procurement & Input Section: - The information about the

procurement of the raw-materials and inputs for production will be reported to MIS. •

Quality Control: - Information about the quality control

techniques being adopted, its success, etc. is being reported to MIS. •

Production Sections: - Information about the cost of

production, turn over/day, purchase, sale, etc. machinery and its working conditions, etc is being reported to MIS. •

Finance Section: - Information about annual report, balance

sheet, income statement, bills, receipts etc. is being reported to MIS.

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Administrative Sections/HRM: - The information about

employees like appraisal reports, number of employees, attendance, salary, promotions, welfare activities, etc. is being reported to MIS. Hence all these sections submit these reports to MIS department and MIS department stores and cater to the information to the board as and when needed by the board decision-making and keep them well informed. 2. Secondary Sources: The secondary source refers to the already processed information and this is collected through the government documents, survey reports, animal husbandry department, etc. Management of Information System: MIS manages its function through the implementation of Windows 2000 D2k (Developer 2000) which is used as front end, and  Oracle as backend. In addition it implemented 2 packages. a)

Milk billing package.

b)

Sales accounting and payroll. The whole packages are implemented through ERP module i.e. (Enterprise Resources Planning). The whole processing is done through the networking, which is pertained only within MIS section. The process is under program for implementing the network throughout the organization.

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Chapter-5 FINANCE AND ACCOUNTS DEPARTMENT FINANCE & ACCOUNTS TEAM

Manager (Finance) Dy Manager Asst Manager Ac. Officer Suptd Ac.A-1

Ac.A-2 Ac.A-3 Helpers Ac.A= Account Assistants

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Introduction: Finance is regarded as the lifeblood of the business enterprise. Efficient financial management is very important to any organization. Lack of this paralyses the activities of the firm. Hence, it is essential to have a sound financial system organized in an organization or enterprise. Every organization needs money and the management of it is very important in any financial system of an organization. BAMUL has a very sound financial department and well trained and experienced employees to carry out the financial activities. Here very small to big activities are carried out with utmost care. Objectives: The objectives of financial department are as under: • To ensure that accounting records of various division are properly maintained. • To ensure that sales realization are properly accounted and remained the marketing section from time-time over the debtors portion in order to enable them to collect the dues. • The account section objective is also to see that regular payments of milk bill are made to milk producers on priority. • To see that the payments to creditors are made within stipulated time.

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• Account section has to provide management timely information about the financial position of the union and guide them as to viability of the proposals that come in the course of business activity. • The other objective of finance section is to keep the management / board appraised of monthly treading and P/I figures. • To include timely submission of financial statements to auditors and ensure smooth audit is conducted and give audit reports to management. • To make cost evaluation and caution management where ever the cost exceeds the norms. Functions: The main functions of financial department are as under: 1. To manage cash.

2. To mage bills. 3. To manage transportation bills. 4. To manage pay bills. 5. To manage accounts. 6. Prepare IBP. 7. File IT returns and other statements returns.

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The details of each function are as under: 1.

Cash: There are two cash counters in the financial section,

I)

I)

Collection of sales proceeds counter.

II)

Cash counter.

Collection of sales proceeds counter: This is for cash collection of sales proceeds of milk and milk

products. Cash remitted by challen 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. II)

Cash counter: Another cash counter is for handling impressed cash and cheques.

Impressed cash means amount required for meeting various payments. 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 and 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 receipt are

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being passed in this cash section. All these transactions of receipt and payments are entered into computer and cash book entry is also being made in computers. The union uses 7.2 Version Tally Package. 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 computer.

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

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All these above bills are received from different user section once in a fortnight, duly certified for having hired the vehicle for the purpose of milk procurement, distribution, mobile veterinary service; cattle feed transportation, transportation of milk to other dairies in hired transportation tankers. All these bills are duly scrutinized in account section in different aspects such as correction of the distance, deduction towards TDS, any other recoveries and / or passed for payment through cheques. Since these bills are in No.; once in a fortnight for total amount of payment is made to their bank accounts. 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. Surana college

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An Organizational study at BAMUL

deduction statements for deductions under various heads cited above and these deductions are generated in computer itself when salary bills are prepared. Specimens of salary bill and deduction statements are enclosed. 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. Some times they even get grants from the government.

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Share Capital (in Lakh Rupees)

ShareCapital (inLakhRupees) 1200 1000 800 ShareCapital (in LakhRupees)

600 400

5 0 4 -0

3 2 0

0 2 -0

1 2 0

2 0

0 0 -0

9 9 8 -9

7 1 9

9 6 -9 1 9

1 9

9 4 -9

0

5

200

Annual Turn-over (in Lakh Rupees)

Annual Turn-over (inLakhRupees) 35000 30000 25000 20000

Annual Turn-over (in LakhRupees)

15000 10000

5

3

0 4 -0 2 0

1

0 2 -0 2 0

0 0 -0

9 2 0

9 8 -9

7

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1 9

9 6 -9 1 9

1 9

9 4 -9

0

5

5000

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Net Profit (in Lakh Rupees) Net Profit (inLakhRupees) 300 250 200 Net Profit (inLakh Rupees)

150 100

5 0 4 -0

3 2 0

0 2 -0

1 2 0

0 0 -0

9 2 0

9 8 -9

7 1 9

9 6 -9 1 9

1 9

9 4 -9

0

5

50

Ratios at Glance 19992000

20002001

20012002

20022003

20032004

1.97:1

1.91:1

1.67:1

1.66:1

1.41:1

1.55:1

1.27:1

1.25:1

1.35:1

1.13:1

42.20%

70.27%

62.20%

46.89%

2.04:1

2.63:1

2.79:1

2.38:1

0.68:1

2.92:1

2.96:1

2.69:1

0.69:1

0.73:1

0.89:1

0.76:1

1.83:1

1.66:1

1.27:1

1.32:1

16.5 T

16.8 T

19.75 T

22.68 T

49.80 T

34.0 T

15.19 T

27.63 T

77 T

88.7 T

195.49 T

159.4 T

Debt Collection Period Cash Turnover

4.7 days

4.1 days

1.87 days

2.30 days

18.0 T 29.8 days

21.79 T 20.91 days

18.70 T

Debt Payment Period Net Profit Ratio Operating Ratio

22.9 T 31.7 days

23.5 days

1.05%

0.44%

0.15%

0.90%

1.37%

98.58%

99.04%

101.15%

99.19%

98.63%

Ratios Current Ratio Quick Ratio Inventory to Working Capital Debt equity Fixed Asset to new worth Current Liability to Networth Solvency Ratio Working Capital Turnover Stock Turnover Debtors Turnover

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1.75:1

59.61 T 6.71 days

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CHAPTER-6 PRODUCTION DEPARTMENT The Bangalore Milk Union is mainly concerned with production of milk and other by-products such as curds, butter milk, ghee, peda and butter. The Production of other by-products is taken care by a separate department brown as product department and production of milk and curd is taken core by production department. Hierarchy (production department) Manager Dept Manager Asst Manager Technical Officers Supervisors Technicians Helpers

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Functions: The functions of production department are as follows: 1) Procurement of raw material. 2) Maintain and produce the standard quality products. 3) Using of advanced technology. 4) Produce zero bacteria milk. 5) Maintaining inventory of both raw material and finished products. 6) Produce different quality of products to meet the market needs and wants. Types of Products Produced: There are 5 main products produced. They are:1) Milk:  Toned milk,  Double toned milk,  Full cream milk. 2) Peda 3) Ghee 4) Masala butter milk 5) Curds

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PROCESS FLOW CHART FOR MASALA BUTTER MILK PRODUCTION & PACKING: 1)

Curd in Can

2)

Mixing thoroughly using s plunger

3)

Adding of pasteurized water

4)

Addition of Masala item to arrive desired taste

5)

Filtration to eliminate extraneous / ungrounded Masala fibers

6)

Transferring to intermediate tank for packing

7)

Packing 200ml size

8)

Storing in crates

9)

Transferring to cold store immediately

10)

Dispatch as per market indent.

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PROCESS FLOW CHART FOR CURD PRODUCTION & PACKING: -

1. Drawing of Pasteurized toned milk from production to vat 2. Heating to 32 – 35 C with hot water circulation with slow agitation 3. Addition of starter culture and mixing well 4. Pumping to intermediate tank 5. Packing in different pack size 6. Filling to crates 7. Allowing 5 – 6 hours for formation / incubation 8. Observation for formation 9. Transferring in cold store 10.Dispatch as per market indent

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PROCESS FLOW CHART FOR PEDA MAKING AND PACKING: -

1. Collection of good raw milk in cans 2. Transferring to Khoa pan 3. Evaporation of moisture in milk with steam with continuous stirring 4. Adding sugar at the stage of milk solids turning to semi solid state (phase) and thorough mixing 5. Transferring of obtained product into S.S. Trey 6. Allowing to cool over night in cage 7. Dyeing upon working the product for proper granulation into 25 gms pieces using S.S. Peda dye 8. Transferring of pieces to laminated carton box of 10 pieces capacity after putting liner 9. Ceiling with cellophane tapes and statutory stamping 10.Dispatch against marketing indent

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PROCESS FLOW CHART FOR GHEE MAKING AND PACKING

1. Raw butter to melting vat 2. Pumping of melted butter to ghee boiler 3. Cooking of butter fall up to 118-120 C 4. Holding at above temperature for 10-15 minutes 5. Cooling with raw water to bring down the temperature to 75-80 C 6. pumping to ghee settling tank 7. Allowing for natural cooling and setting of about 10-12 hours 8. Packing at 40-45 C in different pack sizes 9. Storage in corrugated boxes / tins upon sealing 10.Dispatch against marketing indent

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CHAPTER-7 PROCUREMENT AND INPUT DEPARTMENT Introduction: The daily average milk procurement of BAMUL for the period of 2005-06 (till Dec 2005) was 8.29 lakh Kgs, which works out to be 535 Kgs per day per DCSs. During the year the milk procurement touched a peak of 8.95 lakh kgs per day. In Milk procurement, Bangalore Milk Union stands first in Karnataka and sixth position in the country. The important activities apart from milk procurement of the P&I dept in BAMUL include: Input activities:  Providing feeds and fodder to farmers at concessional rates.  Teaching the importance of animal health to farmers and giving them medical benefits for their animals.  Special emphasis on organizing Infertility Camps in all the DCS.  Support to Training and Employment Programs (STEP).  F.M.D Vaccination Program. 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. 9.83 for every ltr of milk supplied to the Union, which is 72% of the total cost of Production. Milk collected at DCS will be transported to Chilling Centers, through 93 Milk Procurement Routes are also in operation, which collects milk from 35

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BMC centers of 68 DCS directly transported to Bangalore Dairy through insulated tankers. Hierarchy (Procurement and Input): Manager (P&I) Dy manager Asst manager E.O-1 E.O-2 E.O-3

A.A-1 A.A-2 A.A-3 Peon E.O=Extension Officer A.A=Administrative Assistant Surana college

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Cost consumption at BAMUL;

Transportation

4%

Process

5%

Packing

3%

Retail margin

3%

Sales & administration

6%

Miscellaneous

5%

Int & bank charges

2%

Milk purchase

72%

80% 70% 60% 50% 40%

Series1

30% 20%

a

se

s e

rc h

a M ilk

p

u

ch

e b

a

n

k

ll a n ce In

t

&

rg

ou

s

tio

tr a

rg

is M is

ad

m

in

a

il m

et a

&

S

a

le

s

R

P

a

ck

in

ss

g

in

n ro ce P

T

ra

n sp o

rt a

t io

0%

n

10%

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Milk Procurement (Avg. Kgs/Day) Year 1995-96 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Milk Produced 351799 394546 404603 424483 496732 532948 546941 557819 594073 713029 828612

M ilk Pr o d u c e d

M ilk Pr o d u c e d

19 95 -9 19 6 96 -9 19 7 97 -9 19 8 98 19 -99 99 -20 0 20 0 00 -0 20 1 01 -0 20 2 02 -0 20 3 03 -0 20 4 04 -0 20 5 05 -06

900000 800000 700000 600000 500000 400000 300000 200000 100000 0

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CHAPTER-8 QUALITY CONTROL

Introduction: BAMUL has a very good and an extensive quality control department. The main aim is to produce milk bacteria free and prevent adulteration of milk. It also focuses on producing proper quality milk with proper quality of fits and proteins needed Quality Policy: The quality policy of BAMUL is, “Collection of pure milk from Bangalore Milk Union Members and Testing Scientifically and Providing Fresh & Pure Milk to consumers with Associated Milk Products with Competitive Prices and Best Services” Objectives: 1. Strict adherence to specifications with emphasis on defect prevention, use of raw materials, control over each stage of operation. 2. Involvement of personnel from all functions at all levels for development and maintenance of quality system CIP is adopted. 3. Planned & systematic programs for acquiring sales during the operation in order to ensure standard quality. Surana college

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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. KMF has established a research and development center. It conducts produce development and continued quality improvement programs. Hierarchy of quality control as under: -

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Hierarchy (Quality Control) Manager (Q.C) Dy Manager Asst Manager T.O Chemist-1 Chemist-2 Chemist-3 Helpers

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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.  PFA Test and Prevention of food Adulteration Test. Inspection & Testing: Each individual co-operator is trained for instructed well before the individual co-operator commences his routine work of production. The supervisor inspects the routine work personally.

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CHAPTER-9 PURCHASE DEPARTMENT Introduction: In every organization success is mainly depending upon the efficiency of the purchase department. This is due to the fact that, every organization requires materials during its functioning. Hence, purchase department fulfill all the materials needed for each and every departments in an organization. Objectives: • To procure right materials • In right qualities • In right quantities • From right and reliable sources of supplies • To procure materials economically i.e., at reasonable price •

To secure and deliver materials at right placers and at right time. Purchase department has to perform certain activities, duties and function in order to achieve the objects mentioned above.

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Duties and responsibilities of the purchase department – • To keep records indicating possible materials and their substitutes • Maintenance of relevant records of reliable sources of supplies, price materials • Making contracts with right sources of supplies • Analyzing / evaluation of offers / quotations to procure the materials

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CHAPTER-10 STORES DEPARTMENT The stores department acts as a cushion against every need on an organization, mainly at the time of break-down of machinery in the process of working, production and maintenance by supplying the needed items like necessary equipments / spares etc., specially required materials will be maintained as stand-by materials as buffer stock or safety stock. The co-operative auditor makes the stock verification from time to time. To fulfill this obligation 5 years records will be maintained, and more than 5 years is also considered as slow – moving items. Finally, there is a proposed to reduce the inventory from present 2000-2500 items. The stores department of BAMUL; is divided into 5 sub-divisions as follows: • Spares and machinery • Consumable stores • Transport stores • Stationery stores • Unserviceable stores

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The above 5 stores are called BAMUL stores. Each consists of 1 superintended. 1 storekeeper and 2 clerks and 2 helpers. These 5 departments are working for processing and packaging of the milk and distribution etc. Hierarchy (Stores) Manager (Stores) Dy Manager Asst Manager Supervisors Storekeepers Clerks Helpers

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The responsibilities of the above – mentioned divisions are as follows: I. Spares and machinery stores contains maintenance spare and related items. II. Consumable stores contains packing materials and consumable like washing soda, sugar etc., III. Transport division contains vehicle spare parts. IV. Stationery store contains stationery, furniture, fixtures registers for record keeping, books, etc., V. An unserviceable store contains oil, lubricants and disposable items. VI. P&I wind stores contains drugs and DCS materials.

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CHAPTER-11 SWOT Analysis SWOT Analysis refers to analysis of “Strength, Weakness, Opportunities, and Threats”, possessed and faced by an Organization. Strength of BAMUL: 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) Strong supplier base: Its early inception BAMUL has provided it an opportunity to build up a very strong “supplier base”, since there were almost no organized major players in the domestic market. BAMUL is playing a vital role in the district by covering 2611 villages of Bangalore District for their dairy activities. The total members for various societies are 3,16,400. It has 1548 societies for their procurement purpose. In these 90% of societies are running under profit among these above societies.

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c) 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. Product line of BAMUL consists of  Purified liquid milk  Peda  Kova  Curds  Butter and butter milk  Masala butter milk  Ghee 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 of BAMUL: The only weakness suffered by BAMUL is dearth of professionals in its organization. Personnel at BAMUL have not been trained professionally in core management areas such as “Marketing, Human Resource, Finance, etc”, to provide a competitive edge to the organization.

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Opportunities for BAMUL: 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.

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FINDINGS Findings of the study: Following are the findings during the study:  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 upliftment of farmers.  BAMUL is even serving the society and its customer by providing better quality milk and milk products.  BAMUL is earning profit year after year and it is not confronting any financial problems.  BAMUL is equipped with fully automatic systems which ensures total quality maintenance (function)  It has got its own quality control department with fully equipped laboratory and equipments that help detecting any adulteration or any such other defects.  Through the use of advanced technology, BAMUL provides its customers bacteria free and balance nutritious milk (product augmentation)  BAMUL provides training and education programme that creates legal awareness about social and economic upliftment among rural people, especially women.

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 The whole system is so equipped automatically, that more hygiene is maintained in preparing the milk and milk products.

CONCLUSION BAMUL, which refers to Bangalore Milk Union Limited, is playing vital role in serving the rural class and contributing for the economic upliftment of farmers. It is helping the farmers by giving them all facilities to rear their cattle by supplying fodder and feed, improving the breed by artificial insemination with the help of their veterinary services. BAMUL is reaping profit by equipping the latest technology and producing better quality products. It is serving the best quality milk and milk products to its customers, thereby maintaining their top position in the market. It has atomized manufacturing and every process is computerized. In other words through atomization it has achieved great success and a good recognition. It has its own quality control division with all quality control devices and techniques which has helped it in maintaining its standard quality. Hence BAMUL is not only helping the rural society but is also catering the urban region by providing its products to all ages supplying milk to look and corner of Bangalore district.

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