ORGANIZATION STRUCTURE TRAINING

AT
Bengaluru Urban, Bengaluru Rural and Ramanagara Districts
Co-Operative Milk Producers Societies Union Ltd. (BAMUL)

A Report submitted in partial fulfilment of the requirements for the degree of

Master of Business Administration

By

SHARADA K

REGISTER NUMBER
1828054

Under the Guidance of

PROF. SURESH A. S

Institute of Management
Christ Deemed to be University, Bangalore

JUNE 2018

1
 Declaration

I hereby declare that the Organization Structure Training report on Bengaluru Urban,
Bengaluru Rural and Ramanagara Districts Co-Operative Milk Producers Societies Union Ltd.
(BAMUL), has been undertaken by me for the award of Master of Business Administration
degree. I have completed this study under the guidance of Prof. SURESH A S.

I also declare that this Organization Structure Training report has not been submitted for the
award of any Degree, Diploma, Associate ship, Fellowship or any other title, in Christ Deemed
to be University or in any other university.

Place: Bengaluru _____________________

Date: Sharada K
1828054

2
 Certificate

This is to certify that the Organization Structure Training report submitted by Sharada K
is a record of work done by him during the academic year 2017-18 under my guidance and
supervision in partial fulfilment of the requirements of Master of Business Administration
degree.

Place: Bengaluru ______________________

Date: Prof. Suresh A. S.

Institute of Management
Christ Deemed to be University
Bengaluru

3
 Acknowledgement

I am indebted to all the people who helped me accomplish this Organisation Structure
Training successfully.

First, I thank the Vice Chancellor Dr Fr Thomas C Mathew, Christ University for giving
me the opportunity to do my project.

I thank Dr. Suniti Phadke, Dean, Prof. Sudhindra S, Associate Dean, Prof. Shrikanth
Rao, Head of the Department, and Institute of Management Christ University for their kind
support.

I thank PROF. SURESH A. S. for his support and guidance during my training. I
remember him with much gratitude for his patience and motivation, but for which I could not
have submitted this work.

I wish to express my sincere thanks to, Dr. Mangesh, Manager, Bengaluru Urban,
Bengaluru Rural and Ramnagara Districts Co-Operative Milk Producers Societies Union Ltd.
(BAMUL), for giving me an opportunity to work under his guidance and successfully complete
my training.

I thank my parents for their blessings and constant support, without which this training
would not have seen the light of day.

Sharada K
1828054

4
Chapter Page
TABLE OF CONTENTS
No. No.
1 INTRODUCTION TO ORGANIZATION 7

2 ORGANIZATION STRUCTURE 14

3 FUNCTIONAL DEPARMENTS 17

4 SWOT ANALYSIS 29

5 KEY RESULT AREAS AND FACTORS FOR SUCCESS 32

6 PRODUCT PROMOTIONAL MEASURES 34

7 COMPETITOR ANALYSIS 38

8 FUTURE PLANS 40

9 RECOMMENDATIONS AND CONCLUSIONS 42

REFERENCES / BIBLIOGRAPHY 42

5
Fig Page
No. LIST OF FIGURES No.

1.1 Products of BAMUL 10

2.1 Organizational Structure 15

6
 CHAPTER 1

INTRODUCTION TO
ORGANIZATION

7
1.1 OVERVIEW:

The Bangalore Urban, Rural & Ramanagara District Co-Operative Milk Producers Societies
Union Ltd., (BAMUL) was established during 1975 under Operation Flood II by keeping
"AMUL" as its role model. At present Bamul has Bangalore Urban, Bangalore Rural &
Ramanagaram Districts of Karnataka State as its area of operation for Milk Procurement and
selling milk in part of Bruhath Bangalore Mahanagara Palika (BBMP) area and has an annual
turnover of around Rs. 1800 cores.

The Bangalore Milk Union Ltd., (BAMUL) is a unit of Karnataka Cooperative Milk Producers
Federation Limited (KMF) which is the apex body in Karnataka representing dairy farmer’s
co-operatives. It is the second largest dairy co-operative amongst the dairy cooperatives in the
country. In South India it stands first in terms of procurement as well as sales. The brand
"Nandini" is the household name for pure and fresh milk and milk products.

1.2 HISTORY OF THE ORGANIZATION:

 1958 – On 1st Jan 1958, a pilot scheme to cater milk to Bangalore milk market with the
help of Department of Animal Husbandry, Government of Mysore started the milk
processing facilities and veterinary hospitals at National Dairy Research Institute
(NDRI).
 1962 - The Bangalore Milk Supply Scheme came into existence as an independent
body.
 1965- With the efforts of the then minister of Revenue & Dairying, Government of
Mysore Sri M V Krishnappa a joint venture of UNICEF, Government of India &
Government of Mysore dedicated Bangalore dairy to the people of Karnataka state on
23rd Jan 1965 by the then PM Sri Lal Bahadhur Shastriji.
 The Government had granted 52 Acres of land for the Plant and staff quarters, The
Bangalore Dairy had an initial capacity to process 50,000 liters of milk per day.
 1975 - The organization went through a structural change and was handed over to
Karnataka Dairy Development Corporation (KDDC) for implementing World Bank
project.
 1981- To cater to the growing demand for milk by the consumers of Bangalore City,
the capacity was increased to 1.5 lakh liters per day under the Operation Flood-II.
 1984 - The KDDC dairies were handed over to KMF to implement Operation Flood –
II.

8
  1988 - As per the policies of the National Dairy Development Board (NDDB), for
implementing Operation Flood – III, Bangalore Dairy was handed over to Bangalore
Milk Union Ltd., (Bamul)
 1994 - The capacity was increased to 3.5 lakh liters per day under Operation Flood-III.
 Today the Union is capable of processing the entire milk procured, by timely
implementation of several infrastructure projects like commissioning of New Mega
Dairy state-of-the-art technology with a processing Capacity of 6.0 Lakh liters per day,
new chilling centers, renovation of product block etc.

1.3 VISION

 Model Co-operative Milk Dairy in the Country

1.4 MISSION
 Ushering prosperity of rural milk producers by ensuring maximum returns and at the
same time providing wholesome milk at reasonable price to urban consumers.
 To eliminate middlemen and organize institutions owned and managed by milk
producers.
 The complex network of co-operative organization should build a strong bridge
between masses of rural producers and millions of urban consumers & achieve a socio-
economic revolution in the village community.
 To bridge the gap between price of milk procurement and sales price.

1.5 OBJECTIVES

 To provide quality Milk and milk products to urban consumers at competitive prices.
 To facilitate rural development by providing opportunities for self-employment at
village level, thereby preventing migration to urban areas, introducing cash economy
& opportunity for steady income.
 To provide technical input services like veterinary services, artificial insemination,
supply of balanced cattle feed & Fodder seed materials etc., to milk producers.
 To provide assured market & remunerative price for the milk produced by the farmer
members of the co-operative societies.
 To organize Dairy Co-operative Societies at Village level and dissemination of
information like good dairy animal husbandry and breeding practices & Clean Milk
Production through Extension Services.

9
1.6 STRATEGIES

 The strategy of Bangalore Milk Union is "Procure More, Sell More & Serve More” and
reaping the benefits of economies of scale.

 Importance has been given to enrol more and more milk producers in the villages as
members of these DCSs. While enrolling these members, more emphasis is being
accorded to enrol more number of women members and to organize more women
managed DCSs under STEP (Support to Training and Employment Program for
Women).

 BAMUL is also organizing Consumer Awareness Programme as a part of Market

Development to create awareness of "Nandini" Milk through personal contacts, Door
to Door campaigns, Organisational Meetings, School Children Mega Dairy Plant visit
etc., are conducted regularly.

1.7 PROFILE OF PRODUCTS

Fig 1.1

MILK

 Toned Milk – Karnataka’s household most favorite milk. Fresh and Pure containing
3.0% fat and 8.5% SNF. Available in 250 ml, 500ml and 1 Lt & 6 Lt packs. Better to
use within a day from the date of packing.

10
  Double Toned Milk - Pasteurized Double toned milk. Homogenized milk with Min.
1.5% Fat and Min. 9.0 % SNF. Ideal for Health conscious people and senior citizens.
Available in 250ml, 500ml and 1 ltr pouches.

 Homogenized Cow milk - Nandini Homogenized Cow Milk is Fresh and Pure
containing 3.5% Fat & 8.5% SNF. Which is homogenized and pasteurized. Consistent
right. Better to use within a day from the date of packing.

 Subham Milk - Nandini Subham Milk is Fresh and Pure Containing 4.5% Fat and 8.5
% SNF. A rich creamier and tastier milk, Ideal for preparing home-made sweets &
savories. Available in 500ml and 1 lt. Better to use within a day from the date of
packing.

 Samrudhi Milk - Nandini Samrudhi Milk. Fresh and Pure Containing 6.0% Fat and 9.0
% SNF. A rich creamier and tastier milk. Available in 500ml packs. Better to use within
a day from the date of packing.

CURDS

 Set Curds - Real thick curds made from homogenized milk with superior quality
culture. It's thick and delicious. Giving you all the goodness of homemade curds
Availabe in 200 g and 400 g Cups. Better to use within a day from the date of packing.

 Real Curds- Nandini Curd made from fresh pure milk. It"s thick and delicious,
traditional homemade curd. Available in 200 gm and 500 gm & 1 Kg packs. Better to
use within a day from the date of packing.

SWEETS

 Peda – Nandini peda is a delicious treat which is made from pure milk and sugar. By
storing in room temperature these pedas can be consumed for about 7 days. Available
in 250gms pack containing 10 pieces each.

11
  Mysorepak - This is Karnataka’s traditional sweet and one of the most famous sweets
under the brand nandini which is made of pure ghee. By storing in room temperature it
can be consumed for about 7 days. Available in 250gm and 500gm packs.

 Other nandini sweet products have also been launched like Pure Ghee ladu, Badam
Barfi, Kaju Barfi, kunda, Dharwad peda by KMF etc., and they have various gift
packaging available with assortments of sweets. These gift pack sales usually do well
during the festive seasons whereas round the year nandini peda and mysorepak sales do
well.

MILK PRODUCTS

 Butter – Nandini Butter is made of fresh pasteurized cream. Rich in taste, smooth
texture and rich in purity of cow’s milk. Two types are available salted butter and
unsalted butter. Available in 100 gms (salted), 200 gms and 500gms and 20 kg carton
Box.

 Flavoured Milk - Badam flavoured milk available in 200 ml sachets. Better to use
within a day from the date of packing.

 Butter Milk - Nandini spiced Butter Milk is a refreshing health drink. It is made from
pure and fresh curds and is blended with fresh green chillies, green coriander leaves,
asafoetida and fresh ginger. Nandini spiced butter milk promotes health and easy
digestion. It is available in 200ml packs and is priced at most competitive rates, so that
it is affordable to all sections of people. Better to use within a day from the date of
packing.

 Paneer - Available in 200 gms and 1 Kg packs. Can be stored for 30 days when kept
frozen. This is a tasty, wholesome and nutritious by-product by nandini.

 Khova - Khova is prepared from fresh and pure Milk. It is supplied on the Indent Order
Base

12
  Cream - Cream is prepared from fresh and pure Milk. It is supplied on the Indent Order
Base

 Ghee - 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.

(Source: BAMUL website)

13
 CHAPTER 2

ORGANIZATION CHART

14
2.1 ORGANIZATION CHART

Chairman

Board of
Directors

Managing
Director

General
Manager

Administrati
Marketing Finance P&I QC Production
on

Deputy
Manager Manager Manager Manager Manager
Manager

Deputy Assistant Deputy Deputy Deputy Deputy

Manager Manager Manager Manager Manager Manager

Assistant AO/PRO/PS Assistant Assistant Assistant Assistant

Manager /TO Manager Manger Manager Manager

Zoned Super- Accounts Extension Technical Technical

Officer Independent Officer Officer Officer Manager

Administrati
Superintende Superintende Superintende
ve Assistan- Chemist-I Chemists
nt nt nt
I
Administrati Assistant
Marketing Admin Dairy
ve Assistant- Accountant- Chemist-II
Assistant Assistant-II Operators
II III

Helpers Helpers Helpers Helpers Helpers Helpers

Fig 2.1

(Source: BAMUL)

15
2.2 FUNCTIONAL STRUCTURE

At BAMUL, functional structure is set up so that each portion of the organization is grouped
according to its purpose. In this type of organization, for example, there may be a marketing
department, a sales department and a production department.

2.3 ADVANTAGES

Functional departments arguably permit greater operational efficiency because employees with
shared skills and knowledge are grouped together by functions performed. Each group of
specialists can therefore operate independently with management acting as the point of cross-
communication between functional areas. This arrangement allows for increased
specialization.

2.4 DISADVANTAGES

A disadvantage of this structure is that the different functional groups may not communicate
with one another, potentially decreasing flexibility and innovation. Functional structures may
also be susceptible to tunnel vision, with each function perceiving the organization only from
within the frame of its own operation. Recent trends that aim to combat these disadvantages
include the use of teams that cross traditional departmental lines and the promotion of cross-
functional communication.

16
 CHAPTER 3

FUNCTIONAL DEPARTMENTS

17
3.1 FUNCTIONAL DEPARMENTS

 Marketing department
 Administration department
 Finance department
 Procurement and input department
 Quality control department
 Production department

3.2 MARKETING DEPARTMENT

Marketing is basically an action or business of promoting and selling products or services,

including market research and advertising. The movement of production from producers to
costumers involves a lot of hurdles like lack of advertisement, finance and other problems.
Marketing department is responsible to evaluate these problems and to find remedial measures
to such problems.

BAMUL has a well-established marketing department, under the control of marketing

manager. He is responsible for marketing and sales of milk and milk products and for
forecasting the demand for their products in the market.

BAMUL sells its products under the corporate brand name “Nandini”. Most importantly
BAMUL is a co-operative, no loss institution. The orders are placed by the retailers for the
milk and milk products, marketing department receives the orders and supplies as per the orders
received. It also plays an important role in solving problems of retailers and customers.

OBJECTIVE OF MARKETING DEPARTMENT

 To meet the expectation of customers.

 To achieve sales target.
 To undertake promotional activities in order to create awareness about the product.
 The market strategy of Bangalore Milk Union is to market high quality of milk as its
core marketing activity and to concentrate its efforts in the direction to increase the
volume of milk sales.

FUNCTIONS

 They conduct the market survey to analyze the consumer feedback of their products.
 Advertising the sales promotion

18
  Essential steps are taken to improve market share.

MARKETING ACTIVITIES

 The Bangalore Milk Union is marketing milk and milk products through 1946 retailers,
81 Franchisee Outlets, 47 Milk Parlors, 305 distribution routes (as of Jan 2018).
(Source: BAMUL Company profile)

 The persistent efforts to maintaining timely supply, quality and attending to the
complaints of consumers and agents with prompt follow-up action. This leads to the
impressive growth in the sales of Milk.

 Maintaining Cold chain is very important aspect of Marketing, so the Chilled milk from
Mega Dairy Cold storage is dispatched in a Thermal sealed insulated vehicle.

 Milk coolers, Insulated Boxes, Jumbo Crates are issued for Milk sachets storage at
agents point and Tarpaulin Carry bags for door delivery so that the freshness of milk be
retain when it reaches the end consumer.

 To create awareness of "Nandini" Milk through personal contacts, Door to Door

campaigns, Organizational Meetings, School Children Mega Dairy Plant visit etc.,

 Bamul is also organizing regularly Consumer Awareness Program for School / College
students and Women from Mahella Mandlee and other institutions. By showing them
the Production activities of Mega Dairy Plant, Processing, Quality, Packing, Storage
and other activities.

3.3 ADMINISTRATION DEPARTMENT

Administration department is the organizational unit having responsibilities of personnel

administration. The department has the power and authority to help ensure that personnel
policies are implemented legally and in BAMUL the personnel manager looks after this
department.

ADMINISTRATIVE ACTIVITIES

 Attendance: - Attendance punch card system is adopted in the dairy. Every employee
is given a card, and when they enter the organization, the entry time is recorded and
when they leave the organization the exit time is recorded.

19
  Work shift: - This is regulated by the provisions of the factory Act 1948. If more than
one shift is worked then the employee is liable for transfer from one shift to other.
The workers who are subjected to retrenchment will be given priority in other shifts if
there are vacancies. Work time at BAMUL is 24 hours. The office time is 10 am to
5pm. Workers working time is between 8 am to 3:30 pm and 3:30 pm to 12 am under
certain condition. An intermediate additional shift for packing is arranged from 3 pm
to 11 pm, according to the demand.
 Leave regulation: - The employees are entitled to take 12 casual leaves a year. If they
work continuously for 11 days they are given earned leaves. Sick leaves and special
leaves are also given.
 Salary bill: - The administration department who gets the time worked buy each
employee in a month from the time keeping prepares the salary bill payment sheet.
There is an overtime register for maintaining the overtime of employees and fixes the
salary accordingly.
 Appointing authority: -The managing director make all appointments in the federation
or an officer authorized by the MD make it on the basis of selection made by the MD
or on the basis of recommendation of the selection committee for the purpose as he
case may be.

PERSONAL ACTIVITIES

 Recruitment: - Recruitment to permanent post in BAMUL is done by the head

office. It is done after series of tests and interviews. Whenever any vacancy arises,
personnel department report it to the head office. The head officer may advertise
the vacancies in the newspaper and call for application. The candidates who pass
the written test are invited for interview. After the successful completion of the
interview they will be places at the appropriate department.
 Training and Development: - Training process refers to the process of imparting
specific skills. Training improves and molds employee skill, knowledge, behavior
and aptitude towards requirement of job and organization. The employees who are
deployed for training are considered to be on duty and they get the training and
development as per the rule of BAMUL. Normally the training programs
conducted at BAMUL are:
 Workshop on good quality ghee.
 Computer basics
20
  ISO quality system awareness program.
 Workshop on sales tax.
 Quality audit program
 Marketing management
 Materials management
 Workshop on first aid
 Milk packing application and food laws
 Total energy and brand management
 Improving sales effectively

 Transfer: - Employees shall be liable to be transferred from one department to the

other or from one job to the other according to the decision of the company and its
requirement. Employee are also liable to be transferred from one unit to other
establishment of the company within the state.
 Promotion: - Promotion is based on the seniority. For a promotion, the individual
employee should have working experience of about 10 years in particular
department.
 Wage and Salary: - Every employee will be advised at the time of engagement
about the wage rate. Any changes introduced will be intimidated to him in writing.
All employees will be paid wages on a working day before the expiry of the
seventh day after the last day of the wages period in respect of which the wages
payable. The remuneration of the employee is based on the long term settlement
and is preferred once in five years by the management and trade unions.
 Compensation: - There shall be scheme of EPF of contributory nature for the
employees in accordance with the rules to be approved by the board. ESI is 1.75%
of the total salary and 4.75% is paid by the company. For the employee whose
salary is above Rs.10,000 there is no ESI.
 Workmen Classification: - Permanent, Probationary, temporary, Casual.

21
3.4 FINANCE DEPARTMENT
 Finance department is entrusted with the function of the working capital management.
As a part of the financial policy of the union, all the long term capital and
infrastructure investment plans and activities are performed at the head office level.
Hence, the dairy need not interfere in such long term financial plan, except the
preparation of annual capital budget of the dairy and Submission to head office for
consideration and approval. Under the working capital management prepare fund
requirement plan on 10-day basis and it will be submitted to head office for arranging
the fund transfer for meeting the daily requirement of the dairy. The span of 10 days
is taken in considering the milk value being the main and huge commitment which
was met on 10 days’ basis.
 Cash collection from sales- The union has adopted two methods for cash collection.
1-Sales on cash basis
2-Advanced collection method
 Other than this, there are exceptional credits given to a few governmental and other
agencies. The union follows a system of centralized cash management system to
facilitate few movement of fund from dairy to dairy and to meet the requirements of
all dairies in time.

PAYMENT TO CREDITORS AND OTHER AGENCIES

The dairy effects the payment to societies who supply raw milk on 10 days’ basis similarly,
the payment to transport contractors milk is based on 15 days’ basis. For all other raw
material purchase services, the dairy makes payment with a maximum period of 10 days.
There are occasions of advance payments and payment through banks. The employee’s
related payment are made on monthly basis and all statutory dues in time.

MAINTENANCE OF REPORT

In the dairy the accounts are computerized and the data are accounted in an oracle based
financial package. The transaction of the dairy and the connected chilling plants are recorded
in the financial package through cash book, bank book, purchase book, sales book and general
journals. The accounts department also maintains various records that are essential for statutory
audit, Income Tax Audit, Sales Tax Files, Service Tax File etc.

22
PREPARATION OF FINANCIAL REPORTS

The finance department prepares monthly financial report, profit and loss account and this is
submitted to the dairy manger and head office for evaluation of performance of the dairy during
the current month, budget for the last month, actual performance up to the current month and
also the budgeted performance up to current month.

TAX PLANNING

Tax planning is done by BAMUL with approval of board of directors regarding

 Sales tax
 Income tax
 Work contract tax
 Service tax
 Fringe benefit tax etc.

PREPARATION OF BUDGET

The dairy prepares both capital budget as well as revenue annually. The finance department
compiles the various quantitative budgets prepared by the different departments and prepare
the revenue budget of the dairy based on the guidelines issued by the head office. In addition,
the fiancé department prepares the infra-structure budget also. Both capital and revenue budget
is entered in the financial package of getting comparative report of actual and budget.

The main objectives of the finance department are:

 To reduce the fund and to protect the financial interest of the company.
 To assess the working capital requirements.
 To monitor the budget and also funds and payments.

SYSTEM OF ACCOUNTING FOLLOWED

There are two types of accounting

1. Cash system of accounting: It is a system in which accounting entries are made only
when cash is received or paid. No entry is made when a payment or receipt is merely
due.

23
 2. Accrual system of accounting: It is a system in which accounting entries are made on
the basis of amount having become due for payment or receipt. At BAMUL this
system of accounting is followed as it believes is a transaction or an event occurred,
its consequences cannot be avoided and therefore, should be brought into book in
order to present a meaningful picture of profit earned or loss suffered. The accounting
takes into consideration all those income/gains and expenses/losses pertaining to the
accounting period for which we are trying to ascertain the profit and losses
irrespective of whether the income is received in cash or not and the expenses are paid
out in cash or not.

ACCOUNTING SOFTWARE

BAMUL uses TALLY accounting software to maintain financial and inventory records. It is
an accurate and valuable software program which handles various kinds of vouchers and
ledgers and many more which include receipt and payment.

This software program also makes modification entries such as debit notes, purchase and
sales, delivery notes as well as receipt notes.

The tally accounting software has been made to fulfil the requirements of the company’s
development. There is no place for mistake when we use this accounting software. It covers
multiple items with many advanced services and products for various companies which
include small business.

3.5 PROCUREMENT AND INPUT DEPARTMENT

Procurement is an act of getting possession or purchasing something on behalf of somebody

else. In terms of business and enterprises it is related with attaining goods and services that are
necessary for the working.

The main function of this department is procurement of milk from the farmer through primary
unions.

FUNCTIONS OF P & I DEPARMENT

 Organization: To give guidelines to the dairy about the organizing of new society.

24
  Supervision and stabilization: to provide guidelines regarding recruitment, price
fixation etc., to the society.
 Input services: Related to milk production and quality of milk. They also provide cattle
feed to farmers at a responsible price from BAMUL.
 Social security services: The functions include medical, accidental insurance to the
member society.

5.6 QUALITY CONTROL DEPARTMENT

Quality control is concerned with sampling specifications and testing as well as on the
organization, documentation and release procedure which ensure that the relevant tests are
carried out. The products are sold or supplied only after the quality has been judged. The quality
control is independent from the production department, and there by the operational quality is
justified.

OBJECTIVES

 Strict adherence to specification with emphasis on defect prevention, use of raw

material, control over stages of operation.
 Involvement of personnel from all functions at all levels for developing and
maintenance of quality system.
 Planned and systematic program for acquiring sales during the operation in order to
ensure standard quality.

FUNCTIONS

 The main function of quality control section is to control the quality and produce the
best quality products.
 In quality control section the section the milk is tested before processing and even
after processing. Before processing the milk is tested for adulteration, fat content in
milk. Milk below 8% is rejected and fat above 8% is accepted.
 After milk is processed it is tested again for bacteria fat contents and acidity.
 Reports are prepared after the tests, these reports are further submitted to BAMUL for
further clearness and approval.
 BAMUL has established a research and development center. It conducts product
development and continuous quality improvement programs.

25
LEVELS OF QUALITY TEST

 Receiving Inspection: In this level, the raw material milk is received from different
societies. The odor, color and taste are tested. If there are any doubtful cases, it is sent
for CBT. If the milk is negative, milk is rejected.
 IN process inspection: During the process of manufacturing, different tests are
conducted to achieve quality.
 Final inspection: After manufacturing process, the procedure is again tested to know
the quality. If there are any problems it’s again processed to achieve the forced
standard.

QUALITY CONTROL TECHNIQUES ADOPTED

 Gerber test: This test is used to identify the contents of fat in the milk. A mixture of
10ml milk with diluted acid and 1ml amyl alcohol and other contents are used to find
fat in the milk.
 SNF test: This test is used to detect SNF in milk. The test is done by the correct
lactometer under 29C.
 Temperature test: This test is used to now about the temperature of processed milk.
The temperature is maintained at 5C.
 Acidity test: This test is used to measure the level of lactic acid in the milk. The
acidities should be between 0.13 and 0.16

INSPECTION & TESTING

 Each individual co-operative is trained for and instructed well before he/she
commences their routine work of production. The supervisor inspects the routine
work personally.

3.7 PRODUCTION DEPARTMENT

OVERVIEW

Production is the functional area responsible for turning inputs to finished outputs through a
series of production processes. The production manager is responsible for making sure that raw
materials are provided and made into finished goods effectively. Manager will make sure that
work is carried out smoothly and supervise procedure for making work more efficient.

26
STEPS CARRIED OUT

Since all the products are milk products the milk used undergoes certain process before
manufacturing such as: -

 Reception – Milk is collected from member society. The milk is filled in cans and
distributed by BAMUL. These cans are transported through conveyor belts. This
selection is called RMRD.
 Dump tank – The milk in the cans from conveyor belt is poured into the dump tank.
The milk is tested to ensure that the milk is good quality. The samples are taken society
wise, and tested to see whether it contains the sufficient fat and SNF. Nandini gives
price to the farmers on the basis of contents of fat and SNF.
 Chilling – Milk is chilled and stored in big tank. It is chilled to destroy the existing
bacteria in the milk.
 Pre-heating – Milk is heated before taken for pasteurizing and standardization for
destroying bacteria.
 The milk taken for preparing all the other products are separated after this process for
milk, following process is also done.
 Pasteurization - In this process the milk is passed through a steel container. It consists
of steel plates. This consists of two section-heating section and cooling section. The
milk chilled at 4C is passed to the container and heated at a temperature of 73C for 20
seconds, it is then stored below 5C.
 Standardization – It is done for attaining quality milk according to the PFA standard.
For this, the sample is taken and tested for the contents of fat ad SNF in milk. This milk
should contain 3% fat and 8.5% SNF.
 Packing – After standardization the milk is stored in the filtered tank which satisfies all
the quality of the pure milk. It is then transfers to the filling machines. Milk is then
packed through a packing machine. The film role is used for packing.
 Storage – After packing it is stored at temperature below 9C. This is done to maintain
the temperature until dispatch.
 Dispatch – The milk and milk products are dispatched from the storage place through
vehicle and received by the consumers through agents.

OBJECTIVE

 Co-ordinate, organize and monitor the production activities.

27
  Increase the input as much as possible.
 Decrease the cost of production and wastage in production as much as possible.
 Ensure process, control and quality of products manufactured.
 Also ensure that the production meets the planned requirements within stipulated
time.

FUNCTION

 Maintains and produces standard quality products.

 Cost production
 Uses advanced technologies
 Maintains inventory of both raw materials and finished products.
Produce different quality products to meet the market requirements.

28
 CHAPTER 4

SWOT ANALYSIS

29
4.1 SWOT ANALYSIS

It is a study undertaken by an organization to identify its internal strengths and weaknesses, as

well as its external opportunities and threats.

4.2 STRENGTHS

Strengths describe what an organization excels at and separates it from the competition.

 “Nandini” has a strong brand image and a competitive product line.

 An ISO 22000: 2005 & ISO 9001:2000 certification for quality management and Food
Safety Systems.
 The location of the unit is an added advantage as it is located in the center of the city
and has all the infrastructure facilities that result in quick movement in raw materials
and finished goods.
 Very good dealership network, which ensures that the products reach every customer.
 Strong customer base: products manufactured by BAMUL are known for their quality.
This has earned them a very strong customer base. They have captured almost 70% of
the market share in the domestic market.
 Each department in the organization is very co-ordinate.
 Providing the necessary welfare facilities for the employees thus increasing the
retention level of employees.
4.3 WEAKNESS

Weaknesses stop an organization from performing at its optimum level. They are areas where
the business needs to improve to remain competitive.

 Less advertisement.
 KMF has weak distribution network in north and eastern part of India.
 BAMUL lacks enough authority to take decision as it is one of the unions at KMF.
 Less margin for the dealer and products are perishable.
 No Discount, promotional schemes

4.4 OPPORTUNITY

Opportunities refer to favourable external factors that an organization can use to give it a
competitive advantage.

30
  Expanding markets for milk and milk products.
 Existing brand Nandini can be used to expand its product line. New products can be
added.
 Potentials for export due to low cost of production. Efforts to exploit export potential
are already on.
 There is a phenomenal scope for innovations in product development, packaging and
presentation.
4.5 THREAT

Threats refer to factors that have the potential to harm an organization.

 Competitors of BAMUL have started to access the supplier base by offering more
prices.
 Significant increase in feed price.
 Low cost dairy products with low quality are being sold at market.
 Low productivity and scattered production leading to high cost of transportation.
 Very attractive commission for agents from rivals.

31
 CHAPTER 5

KEY RESULT AREAS AND FACTORS

FOR SUCESS

32
5.1 KEY RESULT AREA

Key Result Area is the area identified as important or crucial where a result will assist in the
achievement of the set objectives or goal.

Key Result Areas of BAMUL are:

1. Customer Satisfaction.
2. Product Management.
3. Operational Cost Control.
4. Quality Check.
5. Record keeping.

5.2 SIGNIFICANT FACTORS FOR SUCCESS:

The key success factor of BAMUL is the narrow price spread maintain between purchase and
sales, marketing higher volumes of milk. The volume of sales plays a critical role in
determining costs. Hence, the marketing strategy of Bangalore milk union is to regard selling
of market milk as its core marketing activity and to concentrate its efforts in this direction to
increase the volume of milk sales. The impressive growth in the sales of milk by BAMUL over
the years is due to the persistence efforts of maintain timely supply, maintaining quality and
attending to the complaints of consumers and agents with prompt follow-up action.

33
 CHAPTER 6

PRODUCT PROMOTIONAL MEASURES

34
6.1 PRODUCT PROMOTIONAL MEASURES
In marketing, promotion refers to any type of marketing communication used to inform or
persuade target audiences of the relative merits of a product, service, brand or issue. The aim
of promotion is to increase awareness, create interest, generate sales or create brand loyalty. It
is one of the basic elements of the market mix, which includes the four P's: price, product,
promotion, and place.

 Door to door campaigning: This is a periodic process carried out by the sales team of
organization. They campaign door to door, seeks answers to their question, reason the
consumers and issue broachers.
 Non-government organization: Creating awareness among NGO’s about the product
and its benefits, providing invitation to visit the plant and showing them the production
procedures.
 School children: Children are invited to the plant and are shown the process and
provided with samples.
 Forums: Participating in forums to create awareness of the products. BAMUL invites
customers to consumer forums and create awareness among them. Also, BAMUL
participates in trade shows and exhibitions to educate the people of their products.
 To increase the awareness of their products many advertisements have been aired on
many regional TV channels, with the famous kannada industry actor Puneeth Rajkumar
being the face of Nandini.
 For the retailers who were not in a position to install chest coolers insulated boxes were
distributed during the said period. Milk and milk product are preserved in the insulated
boxes and sold.

35
 CHAPTER 7

COMPETITOR ANALYSIS

36
7.1 INTRODUCTION

Competitor analysis in marketing and strategic management is an assessment of the strengths

and weaknesses of current and potential competitors. This analysis provides both an offensive
and defensive strategic context to identify opportunities and threats. Profiling combines all of
the relevant sources of competitor analysis into one framework in the support of efficient and
effective strategy formulation, implementation, monitoring and adjustment.

7.2 COMPETITORS OF BAMUL

In dairy industry following are the competitors of BAMUL:

 Amul
 Jersey
 Heritage
 Arogya
 Dodla,
 Tirumala
 Nilgiri
 Govardhan.

37
 CHAPTER 8

FUTURE PLANS

38
8.1 FUTURE PLANS FOR GROWTH OF THE ORGANIZATION

The below points are the future prospects of BAMUL.

 The union has taken up a project with advanced technology for manufacture of
Mozzarella, Cheddar and Processed Cheese, Whey Powder, Skim Milk Powder (SMP),
Whole Milk Powder (WMP), Paneer using latest technology and the product will be
into market shortly.
 The Union is availing the central government scheme of Export Promotion of Capital
Goods (EPCG) for import of its machinery for the Kanakapura project and under which
it has to satisfy the export commitments.
 With such investments the union has an ambitious target of selling the products pan
India and abroad.
 To increase the membership of farmers and hence increasing the production of milk.
 A huge prospect is the development of Pro-biotic products like yogurt and weight
gaining powder in the new plant at Kanakpura and thereby increasing market share in
health products.
 Expanding the sales to Eastern countries.

39
 CHAPTER 9

RECOMMENDATIONS AND CONCLUSION

40
9.1 GENERAL RECOMMENDATIONS
 BAMUL is the state federal dairy. It is a pure co-operative setup which works on the
principle of welfare of its members. Unlike private organizations it has a typical system
of decision-making. It has to follow a series of formalities before taking any concrete
decision or applying any change in the system or organization. It therefore lacks the
pace in decision making which affects the marketing performance. It is recommended
that for important administrative decisions, authority should be given to the concerned
administrators so that the right decision at the right time can be taken.
 Co-operatives are welfare organizations which work under defined framework. Hiring
professional managers at open market rate is not affordable by most of the co-
operatives, especially at tier-I and tier-II level where the setup is small and limited. In
such cases the employees or the leaders of such co-operatives should be given periodic
and regular trainings with the help of co-operative training institutes.
 Dairy companies in order to expand and gainfully exploit the opportunities should go
for business combinations with national and international companies. The combined
strength of unit will give the right impetus for growth and development. The partnership
can be financial, managerial, technical or all.

9.2 CONCLUSION
Dairy industry in India is in progressive stage. The credit for the development of dairy
majorly goes to the successful implementation of dairy co-operative movement. Karnataka is
successful in co-operative dairy development however, the development is not balanced.
KMF represents the co-operative dairy movement in the state of Karnataka. Its official dairy,
BAMUL is responsible for procurement, processing and marketing of milk from the farmer
members.

 A good relationship is maintained between the workers and management.

 Employees are satisfied with the working conditions.
 Management is providing good working grounds for the employees.
 Consumers prefer Nandini due to the ready availability and quality standards.

41
REFERENCES/BIBLIOGRAPHY

42
• BAMUL Bangalore dairy
• http://www.bamulnandini.coop/
• https://www.kmfnandini.coop/
• Wikipedia

43