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Belgaum Milk Union Ltd.

PART A
INDUSTRIAL PROFILE
COMPANY PROFILE

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Belgaum Milk Union Ltd.

INDUSTRIAL PROFILE

DAIRY INDUSTRY IN INDIA


Dairy enterprise is an important occupation of farmer. In India
nearly 70% of the people depend on agriculture. It is the backbone of
India. Dairy is linked with agriculture industry to a large extent. Animal
husbandry in India is an essential part of agriculture. It is mainly a rural
occupation closely associated with agriculture.

DEVELOMENT OF DAIRY INDUSTRY IN INDIA


During the Pre-independence year there was no serious stress given
to dairy industry. In 1886 the Department of Defense of the British
Government established the dairy farms for the supply of milk to the
British troops in Allahabad. Later, in 1920 serious steps were taken by
Mr. William Smith, an expert in dairy forming to improve the milk
production There was discrimination done to the Indians hence this led to
the rise of the first milk union in India. In Luck now in 1937 called the
Luck now milk producers Co-operative union Ltd.
In 1946 AMUL (Anand Milk Udyog Ltd) was started in Gujarat to
bring up the economic stability of villagers.
When the farmer Prime Minister Lal Bahaddur Shastri visited the
functioning as it was rendering a social service to the society, which
helped the villagers to come in the national economic stream.
The dairy and Animal Husbandry received serious attention after
the independence. There were lot many of progressive steps taken by the
government through five year plans. This led to the formation of National
Dairy Development Board in 1965 & thus in 1970 he decided to Bring a “
White Revolution” through out the country, Initially 10 states were
selected were for this purpose excluding Karnataka.

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Belgaum Milk Union Ltd.
In Karnataka in 1974 an integrated project was launched to
restructure and reorganize the dairy industry on Co-operative principle of
AMUL and to lay foundation for new direction in dairy industry.

NATIONAL DARIY DEVELOMENT BOARD:


History
The NDDB was founded to replace exploitation with
empowerment, tradition with Modernity, Stagnation with growth,
transforming dairy into and instrument for the development of Indian’s
rural people.
The NDDB was established in 1965; the board is registered under
the Societies Registration Act and the public Trust Act, fulfilling the
desire of the Prime Minister of India – the late Lal Bahaddur Shastri to
extend the success of the Kaira Co-operative Milk producers union
(AMUL) TO OTHER PARTS OF India. Dr Vergese Kurien was the
founder chairman. The success combined the wisdom & energy of
farmers with professional management to successful capture liquid milk
and milk product markets while supporting farmer’s investment with
inputs and services.

The Growth
NDDB began its operations with the mission of making dairying a
vehicle to a better future for millions of gross roots milk producers. The
mission archived helped to launce ‘’Operation Flood’’, a programme
extending over 26 years and with the help of World Bank Loan India
become the world’s largest milk producing country. As per March 2001
India’s 96000 Dairy Co-operative are integrated thorough a three Tier Cc-
operative structure. The Anand pattern, which is owned by more than 10
million formers, procures an average of 1605 million liters of milk

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Belgaum Milk Union Ltd.
everyday. The milk is processed and marketed by 170 milk producers co-
operative unions which, in turn own 15 state co-operative milk marketing
federation. Since its establishment the dairy development board has
planned and spearheaded India’s Dairy programmer by placing dairy
development in the hands of milk producers and the professionals they
employ to manage their co-operatives. In addition, NDDB also promotes
other commodity based co-operative, allied industries and veterinary
biologically on an intensive and nation wide basis.

Objectives of NDDB:
 To sponsor, promote, manage, acquire, construct or control any

plant or work, which promote projects of general public utility

relation to dairying.

 To make information available on request to technical services

to increase production of Milk.

 To prepare initial feasibility studies of dairying and other dairy

related projects and undertake subsequent designing planning

and start up those projects.

 To undertake research and development programme related to

production and marketing of milk and milk products.

 To provide assistance for exchange of information to other

international agencies.

Services rendered by NDDB:


NDDB provide the following services.

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Belgaum Milk Union Ltd.
• Planning dairy and rural development projects.

• Organization of farmer co-operative societies.

• Setting up of dairy and cattle feed plants.

• Manpower planning and training.

• Applied research and development.

• Implementation of milk production enchantment programme.

KARNATAKA MILK FEDERATION

The first dairy in Karnataka was started in Kudige in Kodagu


district in 1955, further in June 1974; an integrated project was launched
in Karnataka to restructure and reorganize the dairy industry on the co-
operative principle and to lay foundation for a new direction in dairy
development.
In 1975, the World Bank aided dairy development was initiated.
The present Karnataka Milk Federation (KMF) came into existence in
1984-as a result of merging of Karnataka Dairy Development Co-
operation, small co-operatives and Karnataka Milk Production
Development and loose vendors.
At the end of the March 1998, the network of 8023 Diary Co-
operative Societies (DCS) have been established which are spread over
166 taluks of the total 175 taluks in all 27 districts of Karnataka. There
are 13 Milk Unions and Belgaum Milk Union (DMU) is one among them.
There are 35 Chilling centers, 3 Farm coolers, 15 Liquid milk plants and
2 Product dairies for chilling, processing, conservation and marketing of
milk. To supply cattle feed there are 4 cattle feed plants.
To ensure supply of quality germ plasma. Bull breeding farm and
frozen semen bank are also available.

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Belgaum Milk Union Ltd.

Karnataka co-operative Milk Producers’ Federation Limited


(KMF)
KMF is the apex Body in Karnataka representing Dairy
Cooperatives. It is the third largest dairy co-operative amongst the dairy
co-operatives in the country.
To impart training, institutes at Bangalore and regional training
institutes at Dharwad and Gulbarga are functioning. Three nitrogen plants
(2 plants of 25 CPM and 1 plant of 5 CPM) are been set-up to supply
nitrogen, which is used for Refrigeration purpose. Three diagnostic
centers have been set-up for monitoring diseases: three fodder farms at
Rajkunte, Kuttanahalli and Kodagu have been set-up to supply good
quality of fodder and seed production farm at Shahpur has been set-up.
The federation giving details of the latest technology in dairy
industry etc is published ‘’Ksheer Sagar’’ magazine monthly.
KMF is a co-operative apex body in the state of Karnataka for
representing dairy organizations and also implementing dairy
development activities to achieve the following objectives.
 Providing assured and remunerative market for all the milk
produced by the farmer members.
 Providing hygienic milk to urban consumers.
 To build village level institutions in co-operative sector to
manage the dairy activities.
 To ensure provision of milk production inputs, processing
facilities and dissemination of know-how.
 To facilitate rural development by providing opportunities for
self-employment at village level, preventing migration to urban
areas, etc.

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Belgaum Milk Union Ltd.
FUNCTIONS OF KMF
 Co-ordination of activities between the unions.
 Developing the markets for the increasing in milk production.
 To make the brand ‘’Nandini’’ as a house hold name.
 Excellence in quality is to be maintained to lay a solid

foundation for wide


 Spread acceptance of ‘’Nandini’’ products.

 To increase the market share of ‘’Nandini’’.

COMPANY PROFILE
2.1) Belgaum Milk Union

Belgaum Milk Union Limited (BEMUL) is functional in the milk


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

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Belgaum Milk Union Ltd.
The government of Karnataka established the Belgaum Dairy in
1966 with a capacity of 10 LTPD (Litre Ton Per Day) and procurement of
3000 kgs per day. In 1985 it was taken over by the Belgaum milk union
(Bemul). On its joining the KMF in 1985, it became as part of the area in
which the operation flood 3 was implemented. Under this a new dairy
with a capacity of 60 LTPD was established at a cost of Rs.5.82 crores. A
chilling center with a capacity of 20 LTPD and form cooler with a
capacity of 60 LTPD was also established as a part of this scheme.

Today the union is procuring milk from over 435 DCSs (District
Co-Operative Societies) of which 319 are functional. Their Functional
DCSs of which 319 are functional. Their functional DCSs has shown
steady increase over the past few years with the member starting at 71787
in November 1997. The effort of the union on the procurement side has
lead to its procuring in an average of 461846 of its milk everyday.

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


Belgaum

Malprabha Gramhina Bank


Auditor – Shri M. R. Joshi & co. Dharwad
Asst. Auditor – Shri S. B. Devarmuni Asst. Director
Shri K. V. Joshi Senior Auditor

Functions of BEMUL
• The main function of is to procure milk from villagers and pay
them the right price.
• To educate the villagers about milk and its quality
• To make’Nandini’ as a part of daily life.
• To provide good quality of cattle feed, fodder, veterinary properly
and in an efficient manner.

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Belgaum Milk Union Ltd.
• To see that the DCS’s are carrying out their activities properly and
in an efficient manner.
• To see that the milk is brought from DCS’s to the chilling centers
in the prescribed time.
• To look the account of the DCS’s supervise the purchase process
and market the milk and milk products.

Objectives of BEMUL:
 Providing hygienic and good quality of milk to the consumers.
 To build the economic strength of the milk products in villages.
 To eliminate middlemen’s in the business so that the milk products
receive there appropriate share of bread.
 To educate the villages about the adulteration of milk and its
harmful effect on the body.
 To see that every citizen becomes healthy by consuming good
quality of milk.
 To make villagers self-viable and build self image.

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Belgaum Milk Union Ltd.
Process at BEMUL
The milk collected at DCS’s is brought to the center thought carries
trucks etc. the quality and quantity of milk bought is checked at the
Reception center by a supervisor.
A sample of milk is taken and is tested in a laboratory for fat
content, Solid Not fat (SNF) acidity etc.
As the milk is at room temperature is to be brought down to 40 c to
50 c. so that it may check the growth of bacteria. To ensure this milk is
passed through a chilling chamber where the milk is chilled. Its
temperature is bought down and then the milk is stored in a tank called as
Ram Milk Tank
From this tank milk is pumped to a pasteurizing cell where the
milk is heated up to 720 c and 15seconds, so that all the bacteria and
microorganisms may be killed and then the milk is simultaneously cooled
to 40 C to 5o C and is store in a ‘Pasteurized Milk Tank’
From here the milk is separated according to the requirement of
production of different types of milk and the remaining milk is used for
manufacturing milk products.

Nature of business carried


One of the core functions is procurement of milk, processing it and
marketing milk and milk products. Bemul markets its products under the
brand name Nandini.

VISION, MISSION AND QUALITY POLICY OF THE BEMUL:


VISION STATEMENT
Belgaum milk union in committed to conserve to conserve energy
and Maintain in the areas of plants by educating all the connected staff
and thereby gaining competitive edge by reducing operation cost control,

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Belgaum Milk Union Ltd.
increasing market share of milk and milk products for prosperity of
producers, consumers and employee for mutual help for nation and
organizations.

MISSION STATEMENT
At BEMUL we Endeavor to satisfy the taste and nutritional
requirements of the customers. Through excellence in marketing by
BEMUL committed team, BEMUL committed to offering quality
products that provide best value for product.

QUALITY POLICY:
To ensure pure, hygienic milk and milk products through
continuous improvement of quality standards.

VALUES:
• Cleanliness
• Total quality maintenance
• Discipline
• Co-operation.
• Transparency
• Honesty

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Belgaum Milk Union Ltd.
Product Profile
Nandini Toned Fresh and Pure milk
containing 3.0% fat and 8.5% SNF. Available in
500ml and 1litre packs.

Nandini Homogenized Milk is pure milk


which is homogenised and pasteurized. Consistent
right through, it gives you more cups of tea or
coffee and is easily digestible.

Full Cream milk. Containing 6% Fat and 9 %


SNF.A rich, creamier and tastier milk, Ideal for
preparing home-made sweets & savouries.

Cow's pure milk, UHT processed bacteria


free in a tamper-proof tetra-fino pack which keeps
this milk fresh for 60 days without refrigeration
until opened. Available in 500ml Fino and in 200ml
Bricks

A taste of purity. Nandini Ghee, made from


pure butter. It is fresh and pure with a delicious
flavour. Hygienically manufactured and packed in a
special pack to retain the goodness of pure ghee.
Shelf life of 6 months at ambient temperatures. Available in 200ml,
500ml, 1000ml sachets, 5lts tins and 15.0 kg tins.

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Belgaum Milk Union Ltd.

Nandini Curd made from pure milk. It's thick


and delicious. Giving you all the goodness of
homemade curds. Available in 200gms and 500gms
sachet.

No matter what you are celebrating! Made from


pure milk, Nandini Peda is a delicious treat for the
family. Store at room temperature approximately 7
days Available in 250gms pack containing 10 pieces
each.

Great way to those soft and juicy jamoon treats


at home! Nandini Gulab Jamoon Mix is made from
Nandini skimmed milk powder, maida, soji and
Nandini Special Grade Ghee. Available in 100gms and
200gms standy pouch with a five layer foil lamination. Shelf life of 6
months.

Nandini spiced Butter Milk is a refreshing


health drink. It is made from quality curds and is
blended with fresh green chillies, green coriander
leaves, asafoetida and fresh ginger. Nandini spiced
butter promotes health and easy digestion. It is
available in 200 ml packs and is priced at most competitive rates, so that
it is affordable to all sections of people.

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Belgaum Milk Union Ltd.
Sterilised flavoured milk, a nutritious and healthy drink and an all-
season wholesome drink available in five different flavours - pineapple,
rose, badam, pista and natural orange. Apart from refreshing energy.
Available in 200ml

Rich, smooth and delicious. Nandini Butter is


made out of fresh pasturised cream. Rich taste, smooth
texture and the rich purity of cow's milk makes any
preparation a delicious treat.Available in 100gms
(salted), 200gms and 500gms cartons both salted and unsalted,

Area of operation - Regional


Ownership pattern.
BEMUL builds and runs under the co-operative institutions such as
 District Co-operative Society. (DCS)
 National Dairy Development Board. (NDDB)

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Belgaum Milk Union Ltd.
Competition Analysis

In towards world every organization is in search of the market


potential the Belgaum round about 5 lakh to 10 lakh population is their so
a huge population city can be easily targeted by the competitors.
The main competitor for every dairy is the milk man. They are the
one who have captured major share of the milk supply because of their
long term relationship and contacts they have maintained the customers
dairies like Mata, Mahalaxmi, Gokul, Arokya & based on religious
matters captured 5% of the market shares.
Most of the companies tried to face the competition but they where
failed.Firstly, BEMUL was header in milk business, but now a days
because of entry of all these dairies it is facing lot of competition. The
neighboring state Maharashtra has entered into the mkt to complete mkt
the brands like Mahalaxmi, Sahyadri are entered into the Belgaum mkt.

Brief history about competitors of BEMUL


The Belgaumers taste new brands of milk every year Right now/
till date there are 16 competitors in the mkt apart from Nandini. The 5
major brands which are very competitive for Nadini are Mayur,
Mahalaxmi, Arokya, Sahyadri and Aditya.

Arokya Dairy: it procures most of the milk from south side of the
Belgaum. It procures 10,000 litres of milk every day. It is located near
Desur a village of Belgaum district 10 kms away from city on NH4 A-
they supply most of the procured milk to the city.

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


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

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Belgaum Milk Union Ltd.
is located in Kolhapur & the supply milk to Belgaum as well as Kolhapur
district.
The standard milk of Mayur dairy contents a fat of 6.5% & 9%
with this fat & S.N.F they supply nearly 10,000 LTPD.

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


district Kolhapur. This is 15 kms away from Belgaum city. It procures
dairy about 30,000 LTPD which will be supplied in the Belgaum city as
well as in the Maharashtra state.

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


Maharashtra state which procure round about 15,000 to 20,000 LTPD &
its target mkt area in Belgaum district, Gokak & in Maharashtra
state.Besides above main brands to other competitive brands like,
Krishna, Gopal, Aditya, Arokya etc.

Infrastructural facilities.
Infrastructural facilities of BEMUL are as follows.
 Security facilities.
 Canteen facilities.
 Shifts facilities-3shifts per day.
 Land 22 acres

Achievements or awards
No awards

Work flow Model

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Belgaum Milk Union Ltd.
(End to End) Production process has the following workflow
model.

DCS

Fresh Liquid Milk Sample Testing Fat and SNF

Chilling

Storing

Pasteurization

Separation

Homogenization

Storing

Packing

Dispatching

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Belgaum Milk Union Ltd.

2.11) Future growth and prospectus


Government of Karnataka and NDDB has signed a memorandum
of understanding during February 2000, for further strengthening the
dairy development activities in Karnataka with an outlay of Rs.250
crores. Consequent to the announcement of new lending terms and
conditions by NDDB through an evolution of an action plan –perspective

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Belgaum Milk Union Ltd.
2010 to enable dairy co-operative to face the challenges of an increased
demand for milk and milk products by focusing efforts. Enhancing
productivity, managing quality and building national information network
plans are under implementation.

 Reparing for ISO-9001 certification.

 Marketing quality improvement.

 Developing HACCP-hazards Analysis and Critical Control Points.

 Getting export grade milk powder

 Expansion of Gokak chilling centers

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Belgaum Milk Union Ltd.

Part-B
McKensy’s 7S Model

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Belgaum Milk Union Ltd.

Part-B
Mc Kensy’s 7S Frame Work
The 7S model is better known as McKensy’s 7S, because the two
persons who developed this model, Tom Peters and Robert Waterman, have
been consultants at McKensy’s and Co. at that time. They published their 7S
model in their article “Structure is not Organization” (1980) and in their books
“The art of Japanese Management” (1981) and “In Search of Excellence”
(1982).
The model consists of seven elements. Those seven elements are
distinguished in so called hard S’s and soft S’s. The hard elements are feasible
and easy to identify. They are Strategy, Structure and Systems of the
organization. The four soft S’s are hardly feasible. They are highly determined
by the people at work in the organization i.e., Style, Staff, Skills and Shared
values

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Belgaum Milk Union Ltd.
1. Structure
Organizational Structure

Board of Management

Managing Director

Procurement Administrati
Finance Purchase
& Input on

Manager
Supreden Security Deputy Assistant
t Canteen
Officer Manager Manager
Administ

Deputy Deputy Deputy


Manager Manager Manager Clerks Assistant Assistant
Account
P&I F&F Veterina Compute Security Cooks s
Officer
r Officer Grade I

Agricultur
Assistant Assistant
e
P&I Manager Attainde Security Account
Officer Helper
r Guards Assistant

Veterina
Extensio Assistant
ry Grade
n Officer s
Assistant I, II, III

Grade
I, II, III

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Belgaum Milk Union Ltd.

Board of Management

Managing Director

MIS Manager
Marketing
Dairy

Deputy Assistant
Quality Transpor
Officer Manager Manager Manager Stores
(Productio Engineerin Control t
n) g

Assistants Assistants Technical Technical Stores Superviso


Assistants
Manager Manager Officers Officer Officer r

Marketin Technical Dairy Lab Stores


Superviso Technicia Clerks
g Officer Officer Assistant
rs ns

Assistants Dairy Technicia


Grade I, Superviso Helpers Helpers Drivers
ns
II, III rs

Operator
Clerks Helpers
s

Helpers Helpers

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Belgaum Milk Union Ltd.
Board of Directors: Administrative Committee Members and
Directors
1) Shri Shankar B. Hirereddy Chairman Bemul Representative
2) Shri Babu B. Katti Director “ “
3) Shri Erappa R. Belakoda “ “ “
4) Shri Ningappa A. Lingannavar “ “ “
5) Shri Manohar S. Hukkerkar “ “ “
6) Shri Prataprao A. Patil “ “ “
7) Shri Satagowda B. Patil “ “ “
8) Shri Ravindra M. Patil “ “ “
9) Shri Sanjay R. Patil “ “ “
10) Shri P. B. Dyamangowder Nominal
11) Smt D. M. Ananthpur Nominal director
12) Shri Somu V. Pujari “ Animal welfare Dept
13) Shri K. V. Kulkarni Director “ “ “
14) Shri M. D. Mallur “ Cooperative
15) Dr. J. S. Jayaprakash Reddy KMF
16) Shri D. Nagaraj M.D. BEMUL

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Belgaum Milk Union Ltd.
DEPARTMENTS OF THE COMPANY
1. Production department
2. Administration department
3. Engineering department
4. Procurment & input department
5. Stores department
6. Security department
7. Processing department
8. Quality control department
9. Finance department
10. Markrting department
11. Distribution department

PRODUCTION DEPARTMENT
Production department is the main department wherein the raw material
is converted into finished into products. At BEMUL production department is
well planned & adequately equipped manufacturing set up where all the
necessary infrastructure is available. The quality of the product is also
dependant on the production procedure.
In BEMUL the raw milk is processed to form the good quality of milk.
During the processing the milk is differentiated depending on the contract of
FAT & SNF (Solids Not Fat)
The different types of milk different in quality are

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Belgaum Milk Union Ltd.
TYPES OF MILK FAT SNF
Full Cream Milk 6% 9%
Toned Milk 3% 8.5%
Standardized milk 4.5% 8.5%
Full Cream Milk 6% 9%
Shubham milk 6% 9%

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


stages are as follows:

1. COLLECTION OF MILK :-
In this stage the milk is bought from the various district co-operative
societies (DSC) to the main dairy in a can of 40 litters capacity in tempo’s or in
any other vehicles. The cans marked with two different colours to differentiate
between the cow & the buffalo milk. One the milk is bought to the main dairy it
undergoes into following process.

2. UNLOADING
The cans were unloaded is called as dock station. The cans are unloaded
from the vans manually.

3. ORGANOLEPTIC TEST
This test is carried out by a person manually without using any machines
but using his sense organs like nose & hence it is called as organoleptic test.
This test is conducted before the cans are weighed. In this test various sub-tests
are conducted like:
• SMELLING (ODOUR) TEST:-
A man at dock station or platform checks the acidic nature of milk by
smelling or tasting the raw milk. If the tasted milk has bad odors then the dairy
will pay lower rate to such society members than the normal rate.

• EXTRANEOUS-MATTER APPERANCES:-

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Belgaum Milk Union Ltd.
In this test the raw milk is undergone into the test, which is conducted
by the chemist. The chemist checks for two aspects mainly whether the milk is
contaminated or not & the milk is in liquid form or curd form. He also checks
for any extraneous matters like dust, flies etc. which lead to spoilage of milk.

• AICDIC TEST
As the payment to the suppliers or DSC depends mainly on FAT & SNF
content in the raw milk. The supplier may add sugar to the milk so as to
increase the FAT & SNF content. Hence to avoid this adulteration sugar test is
done.
Its procedure is 10ml of milk is shaken in a test tube & 1ml of
hydrochloric acid. Few crystals of resorcinol is mixed to it. The solution is
shaken well & heated for five minutes. If solution turns organ color it is
demanded that sugar is mixed to it.

• STORAGE OF CHILLED MILK:-


Once all the tests are over, the milk is allowed to store in the SILOS
(Storage tank). So as to maintain its cold level of 4 degree celcious. The unions
having 7 storage tanks, 3 tanks are vertical with 30000 litters’ capacity each
and the remaining 4 are horizontal among which 2 are having the capacity of
10000 litters each and other 2 of 15000 litters each. After chilling the milk is
passed through pasteurizer for pasteurization.

• PESTEURIZATION:-
This step of production includes heating every partical of milk at 72
degree celcious in 15 seconds and it cold in less then 4 degree celcious. When
it is passing through pasteurization the cream is removed depending on the
quality of the milk required (standardization).

• PACKING:-

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Belgaum Milk Union Ltd.
Once the pasteurization closed is conducted the next step is to pack the
milk. The packing is done by the machine of fluid goods and were as it is done
manually in case of solid goods like pheda. The machine packs the raw milk in
two size that is 500ml and 1000ml pouches. These machines are automatic with
a capacity of packing 10000 to 14000 pouches per hour. The speed can be even
altered according to suitability. These machines are used to pack all different
types of milk in plastic bags. These plastics are polythene bags required for
packing milk is bought from Bangalore.

• STORAGE:-
The last but not the process is the whole of production process is
storage. The milk packed in 500ml and 1000ml pouches are arranged in the
crates. Each cater contain 10 litters of milk. This caters are stored in cold room
which has a temperature of about 5 degree Celsius or below.

ADMINISTRATION DEPARTMENT
• FUNCTOINS
1. Maintenance of attendance.
2. Establishment of billing.
3. Maintenance of service records.
4. Domestic enquiry.
5. To maintain shifts timing.
6. To look after recruitment process.
7. Conducting training to the new employees and also to the existing
once.
RESPONSIBILITIES OF ADMINISTRATION DEPARTMENT
• To look after the overall administration of time office management.
• Conducting training to the new employees and also to the existing once.
• To look after over recruitment process.
• To maintain shifts timings.
MARKETING DEPARTMENT

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Belgaum Milk Union Ltd.
The marketing department is the nearest of any organization. In today’s
highly complex and competitive world, marketing is the tool, which has to be
derived properly to sell the product. Marketing is the more of a complex job
and it requires a great deal of the knowledge about the market that its
competitors. The marketing management requires planning, analyzing,
implementing and controlling of programmes designing to create, build and
maintain beneficial exchange with target buyers for the purpose of achieving
organization objective.

OFFICE WORK:-
1. Checking daily sales as per the respective agents.
2. Finding new areas where there is demand for milk.
3. Issuing tender and receiving application for opening new parlors and
agencies.
4. Fixing/organizing milk distribution routes.
5. Sending of milk / milk products as per the indent.
6. Keeping in track of the timing of vehicles and timely supply of milk.
7. Collection of cash from agents and depositing the same to the milk.
8. Attending complaints from the agents.
9. Meeting agents to solve their problems.
10. Draw new advertising strategy.

FIELD WORK:-
Sales promotional activities like advertisement in reality selling. The
product in the real marketing is very hard and tough job. The marketing officer
has to go the field and study the market and they have to plan the strategy. The
marketing mix plays a vital role while appointing the agents they take initial
deposit of Rs.2000 for Belgaum district and Rs.1000 in Goa. After receiving
deposit they issue bond to them. The bond consists of rules and regulation of
the union.
2. Strategy

B.I.E.T. MBA, Programme, Davangere. 29


Belgaum Milk Union Ltd.
• To serve as an instrument of the national to achieve self reliance in the
design, development and Quality Production of Bemul Products to meet
the customer’s changing and growing needs with special emphasis on
military requirements.
• In fulfillment as this objectives, the company shall regard itself
fundamentally responsible design and developments, relying however
on such relevant facilities as are available in other National institution
but always holding itself basically responsible for the growth.
• To conduct its business economically and efficiently that it contribute its
due share to the National Efforts to active self reliance and self
generating economy.
• Towards this end to develop, maintain an organization which will
rapidly respond to and adopt the changing Matrix as socioeconomic
relationship and where in a climate as growing technical competence.
Self discipline, mutual understanding deep commitment and sense of
belongingness will be fostered and each employee will be encouraged to
grow with accordance to his potential for the furtherance as
organizational goals.
• Consistent with the basic objectives of the state the personal department
of the corporate office has adopted certain specific objectives, which
will act as a source as inspiration and guidance in evolving per sonnet
policies and roaming rules and regulations for growth and development
or employees and to ensure their deep commitment and sense of
belongingness to the company, and the objectives are stated below.
1. Insure equality at all the levels and provide them the right work
Environment, job satisfaction and professional challenges.
2. Provide healthy blend or employee who have grown with original
those Selected from outside

3. System

B.I.E.T. MBA, Programme, Davangere. 30


Belgaum Milk Union Ltd.
The stores Department in BEMUL follow the Codex system (Coded
Control system). A card is maintained for each item and a number is allotted.
The card is attached to each article consists of amount balance, date of issue,
purchase etc. this is later recorded in separate ledger book. The inventories are
of different kind ranging from mechanical, spares, packing items to animal
drugs etc.
This department has the following services:
 It tries to maintain maximum and minimum level of inventory
 Ordinary and locally available commodities are maintained at
minimum possible level.
4. Staffing
The staff deals with the various personnel policies followed by the
organization. Below are given the personnel policies followed by the
organization.

Personnel policies:
There are around 240 employees working. There are various policies
followed. The Administrative department forms the policies.

Recruitment and Selection:


Due to registration, termination, retirement and transfers the concerned
department head will give the manpower requirements along with the job
description.
The manpower sourcing is done through advertisement, manpower
consultant, and employment exchanges and personnel reference.

Promotion:
Promotion is on the basis of seniority.

B.I.E.T. MBA, Programme, Davangere. 31


Belgaum Milk Union Ltd.
Induction:
After an employee is employed in BEMUL, he\ she has to make familiar
to the union and also to know the objective, value, functions and the operations.
This helps the employees to interact with senior staff members from various
departments.

Salaries and Employee Benefits:


Gross salary:
A regular staff member in the union will have a gross salary consisting
of basic salary, dearness allowance, cca, house rent allowance and conveyance
allowance.

Other facilities:
• Shift allowance
• Canteen facility

5. Skills
These are the distinctive competencies that are present in the
organization it is the design and development of products quality and service or
viability of product. The employees in this organization also have all the
distinctive skills that are required for the undertakings of research and
development activities. The BEMUL is improving the employee’s skills and
techniques through motivating them and giving proper training to them also
through giving proper working condition.

6. Style
a) BEMUL has top to bottom or top down style system.
b) The style of organization is authoritarian. It means management cadre
follows authoritative.
The indicators of the style are:
• Follows rules and orders
• Reliable and dependable
Decision making parameter for day-to-day operation:

B.I.E.T. MBA, Programme, Davangere. 32


Belgaum Milk Union Ltd.
Top manager will tell marketing manager to collect information
regarding daily requi9rementsw of the sale of milk and milk products based on
demand. Then this information will provided to production department
indicating production activities

7. Shared Values
The core or fundamental values that are widely share in the organization
and serve as guidelines that are important, these values have great meaning
because they focus attention and provide broader since of purpose.

The values of the organizations are


1) Customer Satisfaction
2) Commitment to total quality
3) Cost and time consciousness
4) Innovative and creative
5) Trust and team spirit
6) Respect for individually
7) Integrity

B.I.E.T. MBA, Programme, Davangere. 33


Belgaum Milk Union Ltd.

PART-C
SWOT ANALYSIS

B.I.E.T. MBA, Programme, Davangere. 34


Belgaum Milk Union Ltd.
SWOT ANALYSIS

SWOT analysis is a tool for auditing an organization and its


environment. It is the first stage of planning and helps marketers to focus on
key issues. SWOT stands for strengths, weaknesses, opportunities, and threats.
Strengths and weaknesses are internal factors. Opportunities and threats are
external factors.

STRENGHTS WEAKNESSES Internal

OPPORTUNITES THREATS External

Strength:
 Nandini enjoys good image

 Wide distribution network leads regular and timely supply

 Milk processed is local therefore reduced transportation cost.

 It enjoys highest market shares in the packed milk segment.

Weakness:
 Poor retail selling and consumer grievance handling

 Commission paid is less compare to other brands

 Inadequate sales promotional activity

B.I.E.T. MBA, Programme, Davangere. 35


Belgaum Milk Union Ltd.
Opportunities:

 There is scope foe developing new area

 Availability of buffalo milk improves market milk quality.

Threats:
 No entry barriers for private players

 Low level of consumer awareness

 Persuaded benefits of competing brands

B.I.E.T. MBA, Programme, Davangere. 36


Belgaum Milk Union Ltd.

PART – D
ANNUAL REPORT

B.I.E.T. MBA, Programme, Davangere. 37


Belgaum Milk Union Ltd.
Present Sales Structure
Year Avg Sales (Litres)
2002-2003 47,320
2003-2004 46,696
2004-2005 45455
2005-2006 44,331
2006-2007 43,185
2007-2008 56,936

B.I.E.T. MBA, Programme, Davangere. 38


Belgaum Milk Union Ltd.
ANNUAL REPORT
BALANCE SHEET FOR THE YERR 2007-2008
PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.)
To, opening 80,56,515.23 By, sales 28,09,85,013.03
balance
21,74,19,491.24 By, other expenses 36,10,597.02
To, purchases
2,46,51,716.92
To, manufacturing
expenses 1,79,344.93

To, vehicle 2,27,26,295.45

To, wages and


salaries 31,97,145.32

To, postage and


telegram 1,28,98,156.15

To, selling and


distribution 34,51,969.20

To, bank loan 33,75,948.79


By, closing stock 1,59,74,807.77
To, technical
expenses 32,09,565.00

To, grand total of


expenses 14,04,269.59

To, profit
TOTAL 30,05,70,417.82 30,05,70,417.82

B.I.E.T. MBA, Programme, Davangere. 39


Belgaum Milk Union Ltd.
Balance Sheet Continued
As at 31-Mar-2007
Capital Account (C/A) 5,33,66,935.32

Reserves and Surplus 4,04,19,718.91

Share Capital 1,27,94,200.00

Share Suspense 1,53,016.41


______________
Loans (Liability) 3,79,94,701.07

Secured Loans 3,79,04,974.00

Unsecured Loans 89,727.07


______________
Current Liabilities 5,50,19,949.46

Grants 84,858.00

Interest Short profit U/S 5,22,730.00


68
1,08,52,250.92
O.S.L.
18,85,688.84
Other Liabilities
6,40,426.30
Salary recoveries
33,53,706.50
Security Deposit A/c
10,12,300.00
Short profit A/c U/s 68
85,134.81
Duties and Taxes
3,65,82,854.59
Provision _______________
( - ) 3,46,90,738.3
Profit and loss A/c
3,96,41,686.94
Opening Balance
( - ) 49,50,948.64
Current period 11,16,90,847.5
Total -----continued

ANNUAL REPORT

B.I.E.T. MBA, Programme, Davangere. 40


Belgaum Milk Union Ltd.
1-April-2007 to 31-March-2008
As at 31 – Mar – 2008
Application of found

Fixed assets 8,38,18,308.14

Fixed assets 7,88,19,921.14

Work in progress 49,98,387.00


______________

Investments
B D C C BANK SHARE 4,36,102.00
BELGAUM DIST. CO. OP
UNION LTD. BGM 25,100.00
INDIAN FARMERS & F
OC OP LTD 1,00
I S B D HARAYAN 10,000.00
KMF SHARE 4,01,000.00 1,00
_______________

Current Asset 2,74,36,437.41


DEFFERED INT (NDDB) 58,16,576.41
INTEREST 5,22,730.00
RECOVERABLE U/S 68
MISAPPROPRIATION 3,24,812.19
RECOVERABLE DUE U/S 10,12,300.00
68 89,70,871.95
Closing Stock 19,71,972.50
Deposits (Assets) 6,93,827.30
Loans and advances 19,54,337.35
(Asset) 3,76,727.35
Sundry Debtors 57,29,318.04
Cash-in-Hand 63,144.00
Bank Accounts _______________ _______________
D D F GRANT
RECIEVABLE 11,16,90,847.55

-----Continued
TOTAL

Profit and Loss A/c

B.I.E.T. MBA, Programme, Davangere. 41


Belgaum Milk Union Ltd.
1-April-2007 to 31-March-2008
As at 31 – Mar – 2008
Trading Account :

Sales Accounts 33,87,36,605.99


Sale-cattle feed 3,28,12,834.35
Sale of milk 28,28,34,885.46
Sale of milk Product 2,11,51,953.14
Sale of P & I 17,41,273.00
Sale other sales 1,95,659.95
______________

Cost of sale : 28,60,92,268.95


Opening stock 75,26,736.80
Add: purchase accounts 25,31,82,193.69
Less: closing stock 89,70,871.95
______________
25,17,38,058.58
Direct Experience 3,43,54,210.41
_______________

P & IWING 41,12,127.50


EXPERIENCE 3,02,42,082.01
PROCE AND
MANUFACTURING
EXPES
5,26,44,337.04
Gross Profit :

Income Statement :
Indirect Incomes

OTHER INCOME 41,95,367.83

-----continued

B.I.E.T. MBA, Programme, Davangere. 42


Belgaum Milk Union Ltd.
BELGAUM MILK UNION –
Particulars 1-April-2007 to 31-March-2008

Indirect Experience 5,18,88,756.23

ADMN. EXPERIENCE 44,27,632.63

INTEREST AND 35,20,933.17


BANK CHARGES

SELLING AND DIST 1,56,39,207.25


EXPERIENCE

STAFF EXPENSES 2,48,23,769.23

BAD DEBTS A/C 2,47,966.95

DEPRECIATION A/C 32,09,787.00

EXP RELATING TO 19,460.00


PREVIOUS YR. _______________
49,50,948.64
Net Profit

B.I.E.T. MBA, Programme, Davangere. 43


Belgaum Milk Union Ltd.
LEARNING EXPERIENCE GAINED IN THE KMF

1. Got complete knowledge of quality testing.

2. Method of maintaining accounts in proper manner.

3. Learnt about the marketing strategy and sales promotion.

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

storage.

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

centers.

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

also speed of operation.

7. Time Management.

B.I.E.T. MBA, Programme, Davangere. 44


Belgaum Milk Union Ltd.

BIBLIOGRAPHY

• Human Resource Management

-By Subba Rao P.

• Company Annual Report.

• www.nandni.coop.

• http://www.7s model of Mckinsey.com

B.I.E.T. MBA, Programme, Davangere. 45