Organizational study of Dharwad Milk Union Limited

EXECUTIVE SUMMARY TITLE OF THE STUDY:

An Organizational study of Dharwad Milk Union Limited (A Unit of KMF)

INTRODUCTION:In todays competition world, no business is spared from the competition even the basic need industries like milk industry are facing the same problem, so the companies should look at the consumers attitude towards their products and if any thing goes wrong they should suddenly rectify it. The main objective of the companies is to be in the field of business and recap profits by providing the necessary products at a reasonable cost with good quality.

Objectives of the study:The objectives of the study were: 1. To study the overall functioning of the organization. 2. To know about the types of milk and how can it will be stored in the cold storage. 3. To study about the area of operation and channels of distribution system. 4. To study their marketing strategies and sales promotional activities.

Source of Data Primary Data:I collected information by observation and interacting with the organization employees and various departmental managers

Secondary Data:
The secondary data was collected with the help of fact sheets, organization manuals, HARBINGER of the KMF, websites etc.

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Organizational study of Dharwad Milk Union Limited

INDUSTRY 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 husbandry. 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 Alahabad. 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 was 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 througout the country, Initially 10 states were selected were for this purpose excluding Karnataka. 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. Babasabpatilfreepptmba.com Page 2

Organizational study of Dharwad Milk Union Limited

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 Indians 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 Bhahaddur 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 farmers 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 program extending over 26 years and with the help of World Bank Loan India become the worlds largest milk producing country. As per March 2001 Indias 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 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 Indias 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:
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Organizational study of Dharwad Milk Union Limited 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. 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

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Organizational study of Dharwad Milk Union Limited 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 Dharwad 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. Karnataka co-operative Milk Producers Federation Limited (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.

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Organizational study of Dharwad Milk Union Limited 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.

The growth process.

The growth over the years and activities undertaken by KMF is summarized briefly here under: Particulars Dairy Co-operatives (Nos) Membership (Nos) Milk Procurement (Kgs/day) Milk Sales (Lts/day) Cattle Feed Consumed (Kgs/DCS) Daily Payment to Farmers Turnover (Rs. Crores) 1976-77 416 37000 50000 35050 220 250 2004-05 9670 1743664 12699785 1694116 1557 242 1500.00

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.

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Organizational study of Dharwad Milk Union Limited 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.

THE THREE- TIER STRUCTURE

KARNATAKA MILK FEDERATION

MILK UNION

MILK UNION

MILK UNION

DISTRICT CO-OPERATIVE SOCIETY

DISTRICT CO-OPERATIVE SOCIETY

DISTRICT CO-OPERATIVE SOCIETY

THE DISTRICT CO-OPERATIVE SOCIETY (DCS)

It is basic organization unit, functioning at the village level, By training local people to organize and manage the activities village level institution building and development of local leadership is promoted.

FUNCTIONS
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Organizational study of Dharwad Milk Union Limited

It functions daily and acts as a marketing outset for the milk produced in the village. Input facilities are also canalized to the dairy farmers through these societies and include Veterinary First Aid, Sale of Cattle Feed, Supply of Fodder Seeds, Seedling and Provisions of Mobile Veterinary Health Care etc. Payment for the milk is done through society.

THE MILK UNION

Milk union is a channel of District Co-Operative Societies in organized form for milk procurement. The procurement route is linked to chilling center or a dairy. Dharwad Milk Union is one of such Milk Unions. It is the middle tier of the complex co-operative organization network. Unions are formed by federating the societies in locating geographical area. The milk unions are organized to make them economically viable and the jurisdiction extends from one district ot 3 Districts. There are 5 Milk Unions whos Jurisdiction covers a single district, 4 Unions COVER 2 District, each 3 Unions cover 3 districts and one Unions territory extends to 4 District. All Unions own their own Milk Processing Facilities.

FUNCTIONS
These Unions help to organize new Primary Dairy Co-operative Societies. The Union also help in managing these DCS by assisting in accounts, purchase, process and marketing liquid milk. The Union helps in providing all the input facilities to DCS and channelizes the dairy farmers through DCS. The Union provides the following facilities. -Providing Balanced Cattle Feed. -Providing Animal Health Care. -Providing Artificial Insemination facility for breed improvement. Babasabpatilfreepptmba.com Page 8

Organizational study of Dharwad Milk Union Limited -Providing Training for breeding, feeding management.

MILK FEDERATION
The main objective of the federation is to help In formation of Milk Unions through the state and thus forming the state level apes organization. The Federation implements all the project activates. After the project activities are accomplished the federation aims at formulating Marketing strategies in marketing the Milk and Milk Product. The Karnataka Milk Federation which was setup in 1984 has the following functions: The foremost function of KMF was to co-ordinate the activities between the Union and also in making market available so that production increases The Federation also manages surpluses and deficiencies of liquid of milk among the milk union and help in disposing milk and milk product at reasonable price The Federation also manages to market the milk and milk products outside the state. Provides Balanced cattle feed, mineral mixture, frozen semen semen straws and liquid nitrogen are produced and distributed to Unions Excellence in quality is maintained to lay a solid foundation for widespread acceptance of the milk and milk products. Training and developing senior managerial personnel, acquiring and applying all recent technologies, prescribing quality guidelines and norms.

The Karnataka Milk Federation consists of:

UNITS Milk Dairies Liquid Nitrogen Silos Product Plant Training Center Sperm Station Cattle Feed Plant Pouch Film Plant Babasabpatilfreepptmba.com NO. 13 17 6 3 3 1 4 1 Page 9

Organizational study of Dharwad Milk Union Limited

THE PRODUCTS OF KMF:

Milk Toned Milk, Full Cream Milk, Good Life, Standardized Milk, Flavored Milk, Smart, Slim,Butter Milk, Milk Products Homogenized Toned Milk, Ghee, Badam Powder, Butter, Panner, Curds, Peda, Cheese, Ice Cream, Gulab jamoon mix, Khova, CashewBurfi,

COMPANY PROFILE A) Dharwad Milk Union

Dharwad Milk Union(DMU) came into existence on 3-3-1986.DMU was established under co-operative act on 3-3-1986 at Dharwad and Gadag, Haveri, Uttar Canara and Dharwad come under its operation.

Establishment:
The Dharwad Milk Union is Co-operative society among the 13 establishment, under KMF. The Dharwad Milk Union (DMU) is one of the most modern plants in the country. It is located in the spacious 25 acres of land, located in Lakamanahalli Industrial Area, adjacent to the Nation Highway-4. It is patterned the AMUL Milk Dairy, Anand, Gujarat. Babasabpatilfreepptmba.com Page 10

Organizational study of Dharwad Milk Union Limited

History:
A group of experienced officers, appointed by the Karnataka Milk Federation surveyed the whole of Dharwad districts (includes two newly formed district Gadag and Haveri) and Uttar Karnataka. Further they found out there as a need for a Milk Dairy. They traveled the surrounding villages, educated the villagers about Milk and Milk products and the benefits they would get from the Milk Dairy. Seeing the overwhelming response and untapped resources and the huge market the Federation decided to setup the Milk Union in 1984, known as the.

DHARWAD DISTRICT CO-OPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITED.

Further in 1988, the Raipur Dairy and Chilling Center, setup in 1968, also came under the union. In 1989, the training center, which was controlled by KMF, came under Dharwad Milk Union. DMU was Rs.7 crore Projects of which Government has Rs.2Crosre of share capital and authorized capital of DMU is Rs.5crore. DMU formed 551 milk producers co-operative societies in Dharwad, Gudag, Haveri and Uttar Kannada districts. The prociction capacity of DMU is 2lack liters of milk per day and also has the capacity to produce 12tones of milk powder, 10tones of butter, 6tones of ghee per day. DMU is collecting 70thousand liters of milk per day from its societies and sells 60 thousand liters of milk per day and the remaining milk is used for producing milk products. Babasabpatilfreepptmba.com Page 11

Organizational study of Dharwad Milk Union Limited

Functions of DMU
The main function of DMU 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. To see that the DCSs are carrying out their activities properly andin an efficient manner. To see that the milk is brought from DCSs to the chilling centers in the prescribed time. To look the account of the DCSs supervise the purchase process and market the milk and milk products.

Objectives of DMU:
Providing hygienic and good quality of milk to the consumers. To build the economic strength of the milk products in villages. To eliminate middlemens 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.

Process at DMU:
The milk collected at DCSs 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.

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Organizational study of Dharwad Milk Union Limited 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 72 0 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.

B) Nature of business carried

Procuring and marketing of milk production and sale of milk products.

C) VISION OF THE DMU.

Cleanliness Total quality maintenance Discipline Co-operation. Transparency.

DMU MISSION STATEMENT

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Organizational study of Dharwad Milk Union Limited At DMU we Endeavour to satisfy the taste and nutritional requirements of the customers. Through excellence in marketing by DMU committed team, DMU are committed to offering quality products that provide best value for money. QUALITY POLICY OF DMU. To ensure pure, hygienic milk and milk products through continuous improvement of quality standards.

D) Product/service profile: - Milk and milk products E) Area of operation - Regional F) Ownership pattern.
DMU builds and runs under the co-operative institutions such as District Co-operative Society.(DCS) National Dairy Development Board.(NDDB)

G) Competitors of information.
DMU has various competitors in the milk products market such as Krishna Arokya Spurthi Datta Bharath Dairy

H) Infrastructural facilities.
Infrastructural facilities of DMU are as follows. Security facilities. Canteen facilities. Babasabpatilfreepptmba.com Page 14

Organizational study of Dharwad Milk Union Limited Shifts facilities-3shifts per day. Heat allowance Cold allowance

I) Achievements or awards
DMU has got ENERGY SAVING award for the production activities.

J) Workflow model.(End to End):

Production process has the following work flow model.

DCS

Fresh Liquid Milk

Sample Testing

Fat and SNF

Chilling

Storing

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Organizational study of Dharwad Milk Union Limited

Pasteurization

Separation

Homogenization

Storing

Packing

Dispatching

K) Future growth and prospectus

Procuring and selling 1 lack litters per day. Preparing for ISO-9001 certification. Marketing quality improvement. Developing HACCP-hazards Analysis and Critical Control Points. Getting export Grade milk powder.

Departments of DMU:
1. 2. 3. 4. 5. 6. Purchasing Department Quality Control Department Production Department Procurement and Input Department (P & I) Finished goods and materials storage Department (FGS) Stores Department Page 16

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Organizational study of Dharwad Milk Union Limited 7. 8. 9. Sales and Marketing Department Finance and Accounts Department Administration Department

Input required per day: Milk procurement up to 70000 liters 5 to 6lakh liters of water 10,000 units of electricity 4 to 5 tones of coal Generator in case of electricity failure and manpower

Quality Control:
At different stages of production the officer from the Quality Control department keeps verifying the quality of the products frequently. Any defects or unconformity to standard containing a small percentage of fat content is sold to the soap manufactures, otherwise it is sent to a special tank with agitator rotating in it. Different chemicals are used and sterilized fresh water is released for agricultural purpose. Caution is taken with regard to the height of the chimney to avoid air pollution. Steam Plant: In various steps of production for instance melting of butter to ghee to etc steam is required, this steam is produced in steam production plant where coal is used for this purpose, Everyday nearly 4-5 tones of cal is required the ash sold to the brick manufactures.

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Organizational study of Dharwad Milk Union Limited

DHARWAD MILK UNION

STATUS NATURE OF BUSINESS SHARE CAPITAL PLALNT CAPACITY A Co-operative society registered under the Cooperative Act 1959. Procuring & Marketing of Milk Production & Sale of Milk Products. 3 Crores approx 2 Lakh liters/day Milk Powder Butter Ghee MILK CHILLING CENTERS Gadag CENTERS AND CAPA Haveri AND CAPACITY Hirekerur Naragund Ron Sirsi 12 MT/Day 6MT/Day 6MT/Day 20.000LPD 20.000 LPD 20.000LPD 8.000 LPD 10.000LPD 20.000 LPD

KARWAR PACKING UNIT

The milk in Bulk is sent Packing and Distribution at karwar which supplies the need of Karwar, Gokarna, Honnavar, Bhatkal, Murdeshwar and Goa.

PRENSE VALUE OF ACTIVITY AREA OF OPERATION BOARD OF DIRECTORS

Collection of Milk 70.000LPD Sale of milk 60.000LPD

Dharwad, Haveri, Gadag Uttar Kannada district Elected Member 8 EX-Officers 5 By Govt. 3 340 Workers Lakamanahalli Industrial Area, Dharwad. 9 NANDINI MILK: Page 18

TOTAL WORKERS LOCATION DEPARTMENT BRAND NAME PROCUCTS

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Organizational study of Dharwad Milk Union Limited Toned Milk, Standard Milk, Shubham Milk. MILK PRODUCTS: CO-OPERATIVE SOCIETIVE AT VILLAGE LEVEL Butter, Ghee, Curd, Lassi, Paneer, Milk Powder 460 Societies

PROCUCT PROFILE
KMF, Dharwad product the following milk and Milk Products.

Toned Milk: Karnatakas most favorite milk. Nadine

Toned Fresh and pure milk containing 3.0% FAT and 8.5% SNF, Available in 500ml and 11tr packs.

Shubham:
Buffalos milk, 100% pure pasteurized processed and packed hygienically, this milk has 5%fat and 9%snf. Available in 5ooml and 1ltr, and also Available in 5trs packs for marriages, and other functions.

Full Cream Milk:

Full cream milk, containing 6% fat and 9% snf. Rich, creamier tastier milk, ideal for preparing home-made sweet & savories. Available in 500ml and 11trs packs.

Homogenized toned milk:

Nandini homogenized milk is pure milk. Which is homogenized and pasteurized, consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500ml packs.

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Organizational study of Dharwad Milk Union Limited

Curd:
Nandini curd made from pure milk, its thick delicious Giving you all the goodness of homemade curds. Available in 200gms and 500gms sachet.

Milk powder:
Enjoy the taste of pure milk! Skimmed milk powder made form pure milk, processed and packed hygienically. Available in 100gms, 200mgs, 500gms, 1kg& 25kg Pack.

Butter:
Rich, smooth and delicious. Nandini butter is made out of fresh pasteurized cream, rich taste, smooth texture and the rich purity of cows milk makes any preparation a delicious treat. Available in 100gms(salted), 200gms and 500gms cartons both salted and unsalted

Peda :
No matter what you ate celebrating! Made from pure milk, Nandini pada is a delicious treat for the family. It will be store at room temperature approximately 7days. Available in 250gms pack containing 10pieces each.

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Organizational study of Dharwad Milk Union Limited

Ghee:
A state of purity, Nandini ghee made from pure butter. It is fresh and pure with a delicious flavor, hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. Shelf life of 6 months at ambient temperature. Available in 200ml, 500ml, 1000ml sachets, 51trs tins and 15kegs tins.

MCKINSEYS 7-S FRAMEWORK The profile of the company can be explained with the help of McKinseys 7-S model. The Mc-Kinseys 7-S Framework is as shown below.

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Organizational study of Dharwad Milk Union Limited

STRATEGY: A set pf decisions and actions aimed at gaining a sustainable completive advantage STRUCTURE: The organization chart and the associated information that shows who reports to which whom and how tasks are both divided up an integrated. SYSTEMS: The flow of activities involved in the daily operations of the business, including its core process. STYLE: How managers collectively spend their time and attention and how they use symbolic behavior. How management act is more important than what management says. STAFF: How companies develop employees and shape basis values. SHARE VALUES: Commonly held believes, mindsets and assumptions that shapes how an organization behaves-its corporate culture. SHARE VALUES Commonly held believes, mindsets and assumptions that shapes how an organization behaves its corporate culture. SKILLS: An organizations dominate capabilities and competencies.

STRUCTURE:
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Organizational study of Dharwad Milk Union Limited

A) organization structure

President

Director (Govt.)

Director (Govt.)

Director (DCS.)

Director (NDDB.)

Director (Society)

MANAGING DIRECTOR

Procurement Dept

Product Process Dept

Marketing Dept

Admin Dept

Finance Dept

Transport

Quality Control

FGS & Stores

MIS

Account & Purchase

B) Sub-structure of various departments and their functions

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Organizational study of Dharwad Milk Union Limited

PROCUREMENT AND INPUT DEPARTMENT

(structure)
Manager (P & I)

Procurement Wing

Technical Input Wing

Deputy Manager

Deputy Manager

Assistant Manager

Assistant Manager

Extension Officer Clerks

Clerks

Helpers

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Organizational study of Dharwad Milk Union Limited The Union carries on procurement by setting up-operative societies at village level. Later milk is collected in the Chilling Center. Milk collected from the milk center, is first tested there are milk-testing equipments for this purpose. Then a survey on availability of transportation facilities and productive capacity of villages are conducted. If the marketable surplus is more than 150liters per day, a society is formed; further 10promeoters are selected from the village and are given the responsibility of collecting the capital for the society by selling shares. Procurement is done twice a day and payment is made on the basis of percentage of the content and SNF in the milk. After this, Milk is sent to Union else chilling center, whichever is near. At the chilling center, milk is chilled up to 4degree Celsius. Later this chilled milk is sent to Union in Insulated Tankers for further processing. The main function of this department is to procure milk different areas throughout the year. the main function of P & I Department is to organize, supervise and operate village dairy co-operative societies and to procure more milk from village societies. Other services provided are: Veterinary services to keep up the good heath of cattle through -Regular health Camps -Emergency service round the clock -First aid, Vaccination, Infertility Camp, Fodder Artificial Insemination facility for improvement of cattle breeds. Facilitating Training Programs regarding management of cattle Supply of Fodder to cattle

PRODUCTION DEPARTMENT

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Organizational study of Dharwad Milk Union Limited The Production department has the following structure
MANAGER (DAIRY)

Deputy manager

Office Staff

Assistant manager Assistant (Stores) Technical Officer Clerk Senior Supervisor Typist Assistant (Account)

Junior Supervisor

Dairy Operation

Dairy Technician

Dairy Worker

PRODUCTION PROCESS
DCS

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Organizational study of Dharwad Milk Union Limited

Fresh Liquid Milk

Sample Testing

Fat and SNF

Chilling

Storing

Pasteurization

Separation

Homogenization

Storing

Packing

Dispatching

The main objective of this department is to follow up production schedule as per plan and to maintain close and co-ordinate relationship with other department and ensures to upgrade the technical efficiency of production. Milk, as it is highly perishable product has to processed immediately to avoid spoilage milk with respect to its flavor, texture and taste.

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Organizational study of Dharwad Milk Union Limited Production department is well equipped and has various types of highly sophisticated machines imported from Sweden and Denmark. Once the milk is received from P & I department, it is first weighed with the help of weighing bowl. Later, it is poured in dump tank. Sample testing is made through lactometer reading and other tests. The fat and SNF content of each sample of milk is accessed the cow and buffalos milk are separately received and sent too the production section separately through two different stainless steel pipes. Later, the raw milk is passed through plate chiller of variable capacity where it is cooled up to 4-5 degrees Celsius. This cooled raw material is further stored in a silo of 30,000 liters capacity.

PURPOSE OF CHILLING
This is done to avoid the growth of micro organisms, which are responsible for spoilage of milk and bitter taste. The milk, which is stored in silos, is pumped through pipeline to the balance tank, which helps to maintain the steady speed flow of milk in the Pasteurization machine. In, DMU, there are 2 milk Pasteurization machine and 1 Cream Pasteurization machine.

PURPOSE OF PASTEURIZATION
Pasteurization is a process where milk is heated to high temperature and cooled instantly, to destroy any microorganism. The pasteurized milk will stored in Pasteurized milk silos and then sent to pre-packing section. Packing is done in 500m l and 1000ml and stored in cold storage at 70.

PASTEURIZATION OF CREAM:
The milk in bulk is taken to the cream separator. Here, the cream is separated. The cream is passed through cream Pasteurization Unit. This cream is sent to Butter section. The milk with no fat is skimmed milk. This skim milk is pumped back to Pasteurization Unit and heated to 720 using steam and chilled to 40 using chilled water and stored silos. Babasabpatilfreepptmba.com Page 28

Organizational study of Dharwad Milk Union Limited This skimmed milk is sent to powder section. The pasteurize cream is mixed in portion to pasteurized milk.

CURDS:
Raw milk is heated to 90 0 and allowed to cool to 30 0. Later culture is added to it and packed; the curd is formed in the packet itself. It is stored and packed in 200gms and 500gms.

BUTTER:
The cream, which is stored in cream refining tank, is taken to the churning section where it is churned. Here butter fat and buttermilk are separated. The vacuum pump removed excess of moisture and butter comes out of continuous butter making machine (capacity 1500 kgs/hour). Butter is packed in 100, 200 and 500 gms and also in 10, 25 gms, these are stored in deep freezer room with temperature 22 0 and if the order of salt butter they mix the salt water with cream and other process is same.

GHEE:
There are 2 Ghee Boiler of capacity 1500 kgs/batch. A Butter of 2.5 tons is melted and is brought to Ghee Boiler. Here it is heated to 116-117 degree Celsius for 15 minutes so that the residue is allowed to settle down and Ghee is passed to setting tank through clarifiers. Later Ghee is allowed for cooling (at 300-400) and packed in Tin of Liter, 500 ml and 200 ml of pack and kept in the cold storage.

PANEER:
If there is excess of milk, then Paneer is been made. The milk is heated to 900 for 15-20 minutes. Glacial acetic acid is added to milk, and then milk is strained through fine muslin cloth. The solid portion is retained and is put in water and then it is put in chilled water and left overnight. Later it is packed and stored in cold storage. Babasabpatilfreepptmba.com Page 29

Organizational study of Dharwad Milk Union Limited

MILK POWDER: When there is excess of milk. Milk Powder is made. The capacity of the powder plant is 12 tons. There are two sections Evaporator and spray Drier through which milk is converted to Milk Powder. In Evaporator, milk is boiled for 550 at high vacuum. Milk is concentrated to drier to-45% of milk is solid, moisture is removed and the milk powder obtained consists of 4% moisture.

PEDA:
Dharwad is famous for its delicious Pedhas. DMU has separate pedha section. About 8 Liters (depends upon the demand) is heated continuously for 3 hours till the milk is semi-solid, later sugar and other ingredients are added and stirred continuously on low flame. Later it cooled and it is shaped in small balls and packed.

The milk produced here is differentiated by the content of fat and SNF

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Organizational study of Dharwad Milk Union Limited FAT 3.1% 4.5% 6% 5.1% SNF 8.5% 9% 9% 9%

TYPE Toned Milk Standard Milk Subham Milk Full Cream Milk

He below table gives a brief idea of the milk products, their fat SNF, moisture Content: PRODUCT Butter Ghee Panner FAT 83% 99.8% 20% SNF 1% 30% MOISTURE 16% 0.2% 50%

QUALITY CONTROL DEPARTMENT The Quality Control department has the following structure

Deputy Manager

Assistant manager

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Assistant manager Quality Assistant Officer (Chemicals) Quality Assistant Officer (Chemicals)

Quality Analyst Lab Assistant Quality Assistant

In DMU, at every stage, care is taken to ensure that the customer gets the products, which have a very high quality. Hence there is a separate department called Quality Department. Where the quality testing is done. There is a separate laboratory for this. Quality control is very essential as to maintain the freshness of the milk. All the containers, pipes and other equipments are washed with hot water before starting off with new production. There are many tests conducted here. The packed milk we get will have undergone 3 quality tests. First test is done on raw milk, which we get from chilling center. Next before standardization and the last test before packing. The other tests conducted are: TEST Temperature Clot on Boiling Acidity Test Alcohol Test Lactometer Fat test SNF Test REASON Should be below 5 degrees If mill curdles soon after billing milk is rejected To test the extent of acidity To check the heat stability of milk To check the density of milk Percentage of fat determined Percentage of SNF determined for pricing SNF=CLR+FAT/4

STORE DEPARTMENT
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The Stores Department in DMU follows the Codex system (Coded Control System). A card is maintained for each item and a number is allotted. The card attached to each article consists of amount balance, date of issue, purchase etc. This is later recorded in separated ledge book. The inventories are of different kind ranging from mechanical, spares, packing items to animal drugs, and stationary and veterinary drugs. There are at least 4000 different inventories. This department has the following services: It tries to maintain maximum and minimum level of inventory So as to avoid blockage of capital and storage. Ordinary and local available commodities are maintained at minimum possible level. Items of urgent and not easily available are stored sufficiently for further demand.

The structure of this department is as shown

Stores Super dent

Stores Assistant (Fds)

Store Assistant 2)

(Gr-

Helpers

Store Department has two sub-department. Babasabpatilfreepptmba.com Page 33

Organizational study of Dharwad Milk Union Limited STORES FINISHED GOODS STORE

FINISHED GOODS STORES:

This Department acts as an interface between production and Marketing Department. It is concerned with maintenance of finishes goods connected records. It received all the finished goods and issued the stock to marketing department as per indents. It ensures that the goods are maintained properly with respect to quality Accounts are maintained and daily and daily and monthly report is submitted to the production. Marketing and Finance Departments. As the products as perishable FirstIn-first-Out method of inventory is followed.

The FGS Department has the following Structure:

Stores Superident

Stores Assistant (Fds)

Store Assistant

(Gr-2)

Helpers

FINANCE DEPARTMENT
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Organizational study of Dharwad Milk Union Limited This Department is responsible for keeping all the inward and outward flow of money of union. It prepares budget every year and financial rules for receipts all payments are framed. The functions of these departments are: To prepare monthly accounts (Receipts and payment P & I Account and Balance Sheet). To prepare quarterly financial statement. To prepare integrated business plan. To prepare year ending financial statements. To get accounts audited from statutory books of accounts. DMU Follows to types of auditing: 1. Pre-Audit System done by Finance and Account Department every Year. 2. Statutory System Done by Private charted accountants every year.

The structure of finance Department is as shown:

Deputy Manager

Deputy Manager

Assistant Manager

Assistant Account Officer

Assistant Account

PURCHASE DEPARTMENT
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Organizational study of Dharwad Milk Union Limited

It is a sub-department, which comes under Finance Department. The main work of this department is to purchase various materials required by different department. After ascertaining the stock position by stores department and indent is sent by different department duly approved by the Managing Director. This department act to purchase materials.

It also maintains records of all the suppliers calls for Tenders, quotations etc. Quotations with lowest rate are sanctioned. Purchase up to 50,000, then the approval of Managing Director.

The structure of Purchase Department is as shown:

Purchase officer

Purchase superdent

Helpers

ADMINISTRATION DEPARTMENT
The Administration Department controls the overall functioning of the organization. The organization consists of the following three levels. Managerial cadre includes Managing Director, Deputy Manager, and Page 36

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Organizational study of Dharwad Milk Union Limited Assistance Manager. Supervisory level included technical officers and supervisors. Worker level includes labors helpers.

The department has the following structure:

Deputy Manager

Assistant Manager (Board)

Assistant Manager (Personnel)

Administration Superintendent

Administration Superintendent

Administration Assistant

Time

Canteen

Security

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Organizational study of Dharwad Milk Union Limited

The Department also handles Canteen, Security and Time Keeping Machine.

CANTEEN:
There is a Canteen in the premise itself. The employees are provided lunch, Tea etc., at reasonable rates. The Canteen is handled by the Canteen-In charge.

TIME KEEPER:
This Department records the working hours of the employees. The time machine shows the entry time and exit time of each employee. The workers divided into different shifts control the working of the Department. Each employee is given a Punch Card,

SECURITY DEPARTMENT:

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Organizational study of Dharwad Milk Union Limited Dharwad Milk occupies 25 acres of land the whole premise is been guarded by the security personnel. The security people work in three shifts. All the vehicles are checked before entering the premise. The departments is also maintains separate registers like store-in Register, Attendance register etc.

CHANNELS OF DISTRIBUTION SYSTEM:

I. DMU --- Transportation Vehicles --- Dealers Door delivery boys -- Consumers II. DMU ----Transportation Vehicles --- Institutions. (Institutions: hospitals, hotels, hostels etc.) III. DMU ----Transportation Vehicles --- Parlours -- Consumers. IV. DMU ----Transportation Vehicles---- Day Counters --Consumers.

PRICE LIST OF MILK AND MILK PRODUCTS.

SL. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Products name Tonned milk/ltr Standard milk/ltr Double tonne milk/ltr Homogenized std milk/ltr Curds Butter milk Peda/kg 200ml Ghee 500ml Ghee 1000ml S.F.M/bottele Jamoon mix/kg Mysore pack/kg Paneer Net Amt 13.50 14.20 11.50 16.00 14.00 11.40 87.68 158.41 152.82 Commission 0.50 0.80 0.50 1.00 2.00 1.60 8.32 11.59 MRP 14.00 15.00 12.00 17.00 16.00 13.00 96.00 170.0

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Organizational study of Dharwad Milk Union Limited

SKILLS
The skills here refers too the various skills the workers have here the workers are further divided into three categories. This first category contains the people who are in the top-management level the second category consists of the supervisors office assistants etc. The third category consists of the supervisors office assistants etc. The third category consists of the workers at the operational. The first category consist of the people who are in the decision making process in KMF these people are highly qualified few Deputy Managers are to industries like IRMA, Anand dairy for Training. The second category is related to office work and fieldwork. These people are also trained in computer Applications, secretarial skills, accounting skills etc. The third level people consist of the workers who are actually into the operation these people are also trained into fields like checking the quality of milk processing packing etc.

TRAINING SYSTEM
The Union emphasizes on training the employees. Most of the training given to the employees here are On-the-Job training and few Off-the-Job Training. Babasabpatilfreepptmba.com Page 40

Organizational study of Dharwad Milk Union Limited Procurement and Technical Input Training (NDDB) PG Diploma in Rural Management Basic Computer Applications. Data Base Administrator Finance Training for non-Finance Officer Co-Operative management Training Programs Clean Milk Production Training Maintenance of Record and Auditing Most of the Off-the-Job Training includes training programs in Anand, Erode etc

STYLES
A) DMU has follows Top to Bottom or Top down style system. B) The Styles of the organization is said to follow the participative type that is the management cadre follow the participative type of administration. The fact is that for a manufacturing firm like the KMF, Dharwad this type of administration is necessary. The Indicators of the Style are: Follows Orders, rules and procedure Is always Reliable, Dependable Watches Details\Prefers to write out Communications Is Rational, Logical, Self-Controlled, Fair and Firm.

Decision making parameter for day to day operations. The marketing department provides information to production department regarding daily requirements of the sale of the milk and milk products based on the marketing demand, later the production department will take the decision about production activities.

STRATEGIES
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Organizational study of Dharwad Milk Union Limited The Dharwad Milk Union has the following set of strategy, which will be formulated event year. The present year has the following strategies. The strategies are formulated with the help of KMF and NDDB an the union members. Below are the strategies set for this year.

MARKETING DEPARTMENT

Marketing Manager

Deputy Manager

Assistant Manager

Marketing Officers

Marketing Superident
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Marketing Accountants
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Organizational study of Dharwad Milk Union Limited

Marketing Supervisor

Marketing Clerks

SRTAGETIES OF THE MARKETING DEPARTMENT:

Visit to all roots of individual points by going in a root distribution vehicle for contact with all agents. Aims to conduct 5 Consumer Awareness Program and various Seminars. Aims at conducting agents meetings. Aims at setting 10 Exclusive NANDINI Milk Parlors. Aiming to set up new sales promotional and advertisement activities. Women association programs. Joining with other programs.

STRATEGY IMPLEMENTATION SYSTEM:

Marketing strategy like sales promotional and advertisement activities of DMU are as follows. Press advertisements Hoardings Wall paintings Rental for KSRTC Buses Leaf lets Page 43

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Organizational study of Dharwad Milk Union Limited Banners Vehicles paintings and own hoarding paintings Pole ads and Flute boards Rate display boards Milk carry bags Calendar and greetings Exhibition, drawing and consumer mela. Sponsoring of events.

SYSTEMS STORE DEPARTMENT.

The Stores Department in DMU follows the Cordex system (Coded Control System). A card is maintained for each item and a number is allotted. The card attached to each article consists of amount balance, date of issue, purchase etc. This is later recorded in separated ledge book. The inventories are of different kind ranging from mechanical, spares, packing items to animal drugs, and stationary and veterinary drugs. There are at least 4000 different inventories. This department has the following services: It tries to maintain maximum and minimum level of inventory So as to avoid blockage of capital and storage. Ordinary and local available commodities are maintained at minimum possible level. Items of urgent and not easily available are stored sufficiently for further demand. INVENTORY CONTROL SYSTEM.

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Organizational study of Dharwad Milk Union Limited DMU has follows inventory control system like, FIFO System (First In First Out System). It means milk which is procured first which is sent first to production process immediately.

STAFF
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 383 employees working in Dharwad Milk Union. There are various policies followed by the Union. The Human Resource Department is the in Dharwad Milk Union Works as a sub Department of Administration Department.

RECRUITMENT & SELECTION:

Due to registration, termination, retirement and transfers, in the concerned department head will give the manpower requirement along with the job description according the HR department arranges for recruitment. The manpower sourcing is done through advertisement, manpower consultant, employment exchanges and personnel reference and available data bank.

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Organizational study of Dharwad Milk Union Limited

PROMOTION AND TRANSFER

Promotion is solely on the basis of sensitivity and experience. Transfers are always accompanied by promotions.

INDUCTION:
After an employee is employed in DMU, he\she has to be made familiar to the union and also known the objective, value, functions and the operations. This helps the employee 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. There are special benefits given to few employees, like:

SHIFT ALLOWANCE:
There are separate allowances given to employees working in different shift like: First shift Allowance Second shift Allowance Third shift Allowance

HEAT ALLOWANCE:
Separate allowance is given to those workers working near boilers and other equipments.

COLD ALLOWANCE:
Separate allowance is given to workers working in Defreeze or cold storage. Further there is Uniform code for every employee. The Union provides 2 pair of uniforms to the employees every year Babasabpatilfreepptmba.com Page 46

Organizational study of Dharwad Milk Union Limited

HOUSE INTEREST:
The employee working in the union can take a loan from other external sources and the Union will pay half the interest on the capital per month.

OTHER BENEFITS:
Canteen subsidy, Festival Advance, medical Allowance, surrender Leave.

SHARED VALUES
These shared values include the mission and vision of the organization. It also includes objective values. Environment Policies etc. KMF, Dharwad has the mission to provide a lucrative market for farmers to sell their milk and to provide best milk to urban customers. Its Vision is to produce more milk and milk Products in the forth-Coming years. KMF, Dharwad also follows environment Policies. The plant doesnt pollute the environment. The organization has its own Effluent Treatment Plant in its own Premises. The Effluents are properly dumped so that on environment hazards occurs.

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Organizational study of Dharwad Milk Union Limited

SWOT ANALYSIS Strengths

Nandini enjoys good image. Wide distribution network leads to regular and timely supply. Milk processed is local milk, which reduces the transportation cost. It enjoys highest market shares in the packed milk segment.

Weaknesses
Poor retail serving and consumer grievance handling. Recurring quality problem. Lowest paying brand i.e. commission given by the company is less compared to other brands. Inadequate sales promotional activity. Due to bad smell that persists causes low sales.

Opportunities
There is scope for developing in new area. Availability of buffalo milk-improves market milk quality. Predominant of loose milk segment-divide appropriate strategies. Babasabpatilfreepptmba.com Page 48

Organizational study of Dharwad Milk Union Limited

Threats
No entry barriers for private players. Low level of consumer awareness. Persuade benefits of competing brand.

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.

OBSERVATIONS
1. What I observed here that there is a severe lack of consumer awareness about the wide range of products sold. 2. The various private brands have been trying to give a really tough competition by giving the agents high trade margins. 3. The organization is playing an important role in developing the economic viability of the villages. 4. The powder making plant has taken an vital role in Dharwad Milk Union. 5. The retailers were not satisfied about the commission given to them by DMU. Babasabpatilfreepptmba.com Page 49

Organizational study of Dharwad Milk Union Limited

RECOMMENDATIONS
The retailers and dealers should be satisfied with commission and schemes so that they can improve the sales in the market. The company should come up with new products with different varieties and attributes to attract the customers. To advertise about all the products in the market. The organization can build good infrastructure better than these like maintaining good garden etc. If the company wants to restart the production of Double Toned Milk, firstly it has to provide sufficient knowledge and awareness about the attributes of products as compared to others.

CONCLUSION
It was an exciting experience to me working with DMU Dharwad. From this project I learnt about the marketing tactics used by Dharwad Milk Union. Dharwad Milk Union is a reputed organization which has developed its goodwill in the market to compete with other famous brands such as Sphurti, Arokya, Srikrishna etc. It has to adopt modern technology in the production process and can do better marketing compared with others. It has to increase the rate of commission payable to its agents or dealers or retailers. DMU is functioning well for the social as well as economical upliftment of the rural population. To survive in the market the company needs to adapt an aggressive marketing policy as of competitors. Babasabpatilfreepptmba.com Page 50

Organizational study of Dharwad Milk Union Limited Last but not the least I would like to conclude DMU as good organization to work as well as to interact with people. All the workers and members of the union nicely motivated me. The Hubli Dharwad retailers and hotel owners co-operated well and supported me in completing and making this project a successfully.

BIBLIOGRAPHY
AUTHOR BOOK Company manuals And magazines Marketing Management Research Methodology K. Aswathappa Production and Operations Stephens Robins Fred Luthans management Organization Behavior Organization Behavior Eight Edition Nineth Edition EDITION PUBLISHER

Philip kotler C.R. Kothari

Millenium Edition Second Edition

Prentice Hall New Age International Pvt ltd 1999 Himalaya Publishing House 2003

Web site:

WWW.kmfnandini.com

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