AN ORGANISATION STUDY

at
“BANGLORE MILK UNION LTD"

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

External Guide: Internal Guide:

Mr. CHIKKAMATH Prof. DR. PREMALATHA
General Manager Professor
BAMUL School of Business

Jain University
School of Business
Bangalore

February 2013

Company Certificate
Prof. DR. PREMALATHA
Professor
School of Business
Jain University

CERTIFICATE

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

Bangalore Prof. DR. PREMALATHA

Date: 9/02/2013 Internal Guide

College Certificate

DECLARATION

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

Date:9/02/2013 MANOHARA D
Place: Bangalore (USN: 12MBA61037)

ACKNOWLEDGEMENT

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

MANOHARA.D

INDUSTRY PROFILE

Historical background of the industry:

In Karnataka, on June 4 th 1975 four milk unions were started in

B a n g a l o r e ,   M y s o r e ,   Tu m a k u r   a n d   H a s a n . K a r n a t a k a   D a i r y   D e v e l o p m e n t
Corporation got Re-named as Karnataka Milk Federation.
In June 1974, an integrated project was launched in Karnataka to restructure and
reconcile the Dairy Industry on the Co-operation principle and the laid foundation for a new
direction in Dairy Development, the Work Bank aided Dairy Development projects during in
1975.Initially the project was covered 8 southern Districts of Karnataka and
Karnataka Dairy Development Corporation was set up to implement the pr
oject. The Multi Level activities were set up with Dairy Co-
o p e r a t i v e societies at gross root levels, milk union at the middle level as an apex body.
Vested with Dairy Development activities continued under operation Flood-11, the
activities were extended to cover the entire state except coastal taluk
so U n i o n   K a r n a t a k a   D i s t r i c t .   T h e   p r o c e s s   o f   D a i r y   d e v e l o p m e n t   w a
s continued in second phase from April 1984, Karnataka milk Federation came in to existence

Objective:

Karnataka Milk Federation is a Co-operative. Apex body in the state of

K a r n a t a k a   f o r   r e p r e s e n t i n g   D a i r y   F a r m e r s   O r g a n i z a t i o n 
a n d   a l s o implementing Dairy Development activities with the following objectives.
•P r o v i d i n g   a s s u r e d   a n d   r e m u n e r a t i v e   M a r k e t   f o r   t h e   e n t i r e   M i l k   Pr
oducers.

•Providing Hygienic Milk to Urban Consumers.

•To build village level institution in Co-operation sector to manage the Dairy activities.

•T o   e n s u r e   M i l k   P r o d u c t i o n   f o r   s e l f - e m p l o y m e n t   a t   v i l l a g e   l e v e l  
preventing migration to Urban Areas introducing cash economy and opportunity for
regular Income.

•The philosophy of Dairy Development is to eliminates middle men and organize institution
to be owned and managed by the milk producers themselves, achieving economics of
scale to ensure maximum return to milk producers at the same time providing wholesale
Milk at lowest possible price to urban Consumers.

•To eliminate the problems of duplicating and over lapping.

•To expand the market. The complex network of Co-operative organization should

build a bridge between millions of consumer and Milk producers. On the other side
to achieve a socio economic revolution within the state.

Management

The management K.M.F is of “pattern, Co-operative activity that is called as three tyre system.
•Primary level cooperative societies (milk producer’s co-operativessocieties).
•District level milk Union.
•State level Federation.

Market share of nandini milk and milk products:

The market share of Nandini milk and production in the West Bangalore City is shown as below:

• Nandini Milk …………. 90%

•Private Dairy …………. 10%

Competitors of the Nandini milk 

•Good morning

•Heritage

•Dodla
•Arogya

•Gomati

Perspective plan for 2008:

Karnataka Milk Federation Union and National Dairy Development Board are formulating the
program to challenges after liberalization deli censing the Dairy sectors to develop and
strengthen Dairy C0-operative movement in the following areas:

•Quality Assurance Programme

• National information Networking

•Productivity Enhancement

•Co-operative Business.

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

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

• ECONOMICAL
Since milk is a daily use product the demand will be always high and also Bamul has the major
portion of market sales are always at high. And the prices vary according to government taxes
and availability raw milk
 • SOCIAL
Since most of employees are from nearest area culture differences is not there. Every employee
is provided uniform to feel the sense of unity . There are all types of age groups in the
organization and mostly elderly employees are in a higher job designation

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

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

BACKGROUND
January 1st 1958 a pilot scheme to cater the Bangalore Milk Market, Department of Animal
Husbandry, Government of Karnataka was started Milk processing facilities & Veterinary
Hospitals at National Dairy Research Institute. Later in 1962, The Bangalore Milk Supply
Scheme came into existence as an independent body. BAMUL is spread over 52acres and had
initial capacity of 50000lts a day. BAMUL is certified ISO 9001-2000 and HACCP (IS-15000).

VISSION AND MISSION

To eliminate middlemen and organize institution owned and managed by milk producers, by
employing professional. Achieve economies of scale of rural milk producers by ensuring max
returns and at same time providing wholesome milk at reasonable price to urban consumers.
Hence the margin between the procurement prices selling price is lowest in the country. In
recognition to is work national productivity council of India has conferred ‘BEST
PRODUCTIVITY AWARD’ 5 TIMES.

OBJECTIVES
-To ensure assured and remunerative market round the year for the milk produced by the farmer
members.
-To ensure assured and remunerative market round the year for the milk produced by the farmer
members.
-To ensure provision of inputs for milk production, processing facilities and dissemination of
know how.
SWOT
a) Strong customer base:
BAMUL enjoys a very strong “customer base” in their domestic market. Products manufactured
by BAMUL are known for their quality, quality perception of customers regarding BAMUL’s
products has earned them a very strong customer base. They have captured almost 70% of the
market share in the domestic market.
B) Competitive Product line:
Products offered by BAMUL are only one of its kinds in the domestic market; its competitors
have only a few substitutes to offer in terms of variants and quality of products.
d) Automated Production:
BAMUL has an automated production process; it helps them to\drastically reduce the cost of
production per unit due to High-end technology production process.
WEAKNESS
d) Automated Production:
BAMUL has an automated production process; it helps them to drastically reduce the cost of
production per unit due to High-end technology production process.
OPPORTUNITIES
BAMUL can explore other avenues of Dairy farming (Honey Culture), since it already has a
strong supplier base. It can train suppliers in “Honey culturing”, and later market the new
product “Honey” under its own brand name “Nandini”, since it has its own value and customer
perception. In the domestic market Honey available is provided by Companies such as “Dabur”,
so Nandini could be made available at a cheaper rate owing to lesser Cost of Production. Major
market share could be obtained since Nandini, the brand name is well known in the local market.
Threats faced by BAMUL:
Competitors of BAMUL have started to access the supplier base of BAMUL by offering more
prices and have been successful in luring some of the farmers. in to give the milk, it is the one
threat faced by BAMUL.
 PRODUCT

Types of Milk & Milk products marketing by Bamul

1. TONED MILK = 3.1 FAT, 8.50 SNF
2. DOUDLE TONNED = 1.6 FAT, 9% SNF
3. HOMOGENISED COW MILK = 3.6 FAT, 8.50% SNF
4. SAMRUDHI = 6% FAT, 8.50% SNF
5. SHUBHAM = 4.6% FAT, 8.50% SNF
6. SKIMMED = 0% FAT
With a total of 9lakh Ltrs per day
CURD
Nandini Curd made from pure milk. It's thick and delicious. Giving you all the goodness of
homemade curds. Available in 200 gms and 500 gms & 1 Kg packs. Nandini Butter Rich,
smooth and delicious. Other Curd products are butter milk, set curd, sweet Lassi, yoghurt.11lakh
ltrs per day

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

NANDINI BUTTER
Rich, smooth and delicious. Nandini Butter is made out of fresh pasteurized cream. Rich taste,
smooth texture and the rich purity of cow's milk, makes any preparation a delicious treat.
Available in 100 gms (salted), 200 gms and 500gms cartons both salted and unsalted.4tonnes a
day
NANDINI PEDA
No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for
the family. Store at room temperature approximately for 7 days. Available in 250gms pack
containing 10 pieces each. 300kgs
SERVICES:
1. ARTIFICIAL INPUT SERVICE
2. ANIMAL HEALTH
3. ARTIFICIAL INSEMENATION
4. CATTLE FEED AND FODDER DEVELOPMENT
5. YASHWINI HEATH CARE SERVICE
6. CATTLE INSURANCE MARKET

Milk is highly perishable product hence the area covered is very less and the market is small
compared to other non-perishable products. The key success factor of Bamul in becoming a
market leader is the narrow price spread maintained between purchase & sales, marketing higher
volumes of milk. The volume of sales plays a critical role in determining costs. Hence, the
market strategy of Bangalore Milk Union is to regard selling of market milk as its core marketing
activity and to concentrate its efforts in this direction to increase the volume of milk sales. Given
below are sales of Bamul from 2003-2012
Bamul is also organizing Consumer Awareness Programme as a part of Market Development
to create awareness of “Nandini” Milk through personal contacts, Door to Door campaigns,
Organizational Meetings, School Children Mega Dairy Plant visit etc., are conducting regularly.

MARKETING
Departmental Hierarchy: Marketing department comprises of departmental head
and further divided into two categories and further into officers then to
superintendents. Salesmen and dispatcher. The hierarchy is as under.
FUNCTIONS
• To capture the markets share.
 • To collect information about revenue.
• Maintain sales and other accounts.
• To attain major market shares.
• They conduct the market survey to analyze the consumers’ feedback of their product.
 Market Share of BAMUL:
60-70% of market share- Nandini.
05-10% of market share- loose milk vendor.
10-20% of market share- other private brands

Marketing Strategies adopted by BAMUL:

“Procure more, Produce more, Sell more, and Earn more”
• By procuring and producing more BAMUL achieves economies of scale which
results in least cost distribution on each unit sold.
• It raises consumer awareness for Nandini by pamphleteering, raising health issues
related to consumption of adulterated milk and soon.
• 981 no of retailer ship during 2011-12 75 no till October 05 were commissioned.
• As per the demand for milk and milk products available throughout the day, 26
numbers of Franchise Outlets, 19 no of parlors are made functional.
• For the retailers who were not in a position to install chest cooler insulated boxes
numbering around 900 were distributed during the said period. Milk and milk
product were preserved in the insulated boxes and sold.
• Around 40 numbers of 400 liters capacity chest coolers under the cold chain
development has been distributed
Promotional Activities:•
Door to door campaigning:- This is done through the sales force team by
questioning the consumers, reasoning them, issuing brochures etc. This is carried
on periodically.
• Organizing meeting:- Organizing meetings is important public places and inviting
important period like doctor, professional, government officers etc.
• Visit to Non -Govt. Organizations:- Visiting to NGOs and creating awareness
about the product and its benefits, inviting them to the plant and showing them the
production procedures.
• Visit of school children to the dairy and promoting their products through them
by issuing samples.
• Inviting the consumer forum and creating awareness to them.
• Participating in trade shows, exhibitions and educate people
• Through advertising in major media’s like T.V., News Papers, hoardings etc…
• It seals its product under the brand name ‘ NANDINI’
HUMAN RESOURCE FUNCTION
Bamul does not exactly have HR department as such but all the HR functions are
carried out by administration department.

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

Recruitment
Procedure of appointment
• If a post is to be fulfilled by competitive examination, then after giving adequate
publicity in the leading Kannada newspaper and one of the national dailies (as the
appointing authority may determine).
The appointment procedure will be carried in the order of merit subject to
reservation in Rule 3.6 from the list of candidates prepared by the selection
committee or expert panel.
• If it is by selection, after giving such adequate publicity in leading newspaper at
least one in Kannada and English to the recruitment as the appointing authority
may determine in the order of merit
• In case of the post being fulfilled by internal promotion from its own staff it is
done by a selection of a person on the basis of merit and suitability in all respect
HR Practices of BAMUL:
The following are the HR practices of BAMUL:
1. House rent Allowance:-
It is allowance provided to all permanent employees at the rate of 13% of basic
pay.
2. Conveyance Allowance:-
Companies provide conveyance facilities to each employee from the place of
residence to the place of work. BAMUL also provides this allowance because it is
situated 11 km away from Bangalore. Conveyance allowance of Rs. 225/month for
persons owning Scooters/Motorcycle, Rs. 500 for moped whereas Rs 1000
3. Provident and Pension Fund:-
This contribution is equal to that of employee contributions i.e. 12% of salary and
it is divided between provided and pension fund as 8.33% and 3.67% respectively.
The total accumulated is balanced in the individual PF account and is paid to
employee at the time of his retirement or on his leaving the service. In the event of
the death of the employee accumulated balance is paid to his legal heirs
4. Gratuity:-
The amount of gratuity payable is generally 15 days average salary. For this
purpose salary includes only basic pay, DA and completed service.
5. Compensation for disablement:-
The employees are covered under the group saving Life Insurance scheme. Who
contributes to the fund are as follows:
• Below SDC - Rs. 30
• Above SDC - Rs. 60
• Below superintendent - Rs. 90
• Above superintendent - Rs. 120
• Out of this 10.5% is kept for insurance
• In the event of disablement of any nature, insurance company will compensate as
per the terms and conditions
6. Leave Facilities:-
All permanent employees as on the date of settlement will be given leave facilities
as mentioned below.
• Earned leave
• Casual leave
• Commuted/half day leave
• Special disability leave
• Maternity leave
7. Medical Reimbursement:-
Contribution from employees is 1.75% (except washing allowance and conveyance
allowance), Rs 25 from management.
Total 6.5% should be remitted to ESI within stipulated time of 21 days. If an
employee becomes fully handicapped, company will provide him Rs. 170/month
depending upon the salary scale. If an employee earns less than Rs. 25 then
management contribute Rs. 25 to ESI
Training and Development:
At BAMUL, training and development is an ongoing process. The workers are
trained to operate machines, reduce scrap and avoid accidents whereas the
supervisors, managers and executives are provided training which will enable them
to grow and acquire maturity of thought and action. The training and development
efforts at BAMUL are designed to help the employees satisfy their personal goals –
through higher level of skills and competencies; facilitate higher contribution at
their present jobs and to prepare them for the next level of the organization. The
employees who are deployed for training are considered to be on duty and they get
the TA and DA as per the rules of BAMUL. Normally the training programs
conducted at BAMUL are:
• Workshop on good quality Ghee.
• Computer Basics.
• ISO Quality System Awareness Programme.
• Workshop on Sale Tax.
• Quality Audit Programme.
• Marketing management.
• Materials management.
• Workshop on First aid.
• Reclair Grades for Milk Packaging Application and Food Laws.
• Total Energy Management Programme.
• Marketing and Brand Management.
• Improving sales effectiveness.
 ORGANISATIONAL STRUCTURE

FINANCE DEPARTMENT

Functions:
The main functions of financial department are as under:
1. To manage cash.
2. To manage bills.
3. To manage transportation bills.
4. To manage pay bills.
5. To manage accounts.
6. Prepare IBP
1. Cash: -
There are two cash counters in the financial section,
I) Collection of sales proceeds counter.
II) Cash counter
• Collection of sales proceeds counter:
• This is for cash collection of sales proceeds of milk and milk products.
Cash remitted by challan system from various milk distribution roots for
sale. A receipt is passed for the net amount collected from each of the
distribution root salesmen and this is being recorded in a on-line account.
This entire amount collected by the end of the day is remitted to bank the
 same day to the current account of the milk union.
• Cash counter:
Another cash counter is for handling impressed cash and cheques. Impressed
cash means amount required for meeting various payment. Receipts are being
issued for collection of cash towards receipts of EMD (Security deposit
repayment of advance drawn and such other outstanding) all these things are
recorded in a cashbook called petty cash book. This cashbook is being closed at
the end of day a verified by accounts office\Asst. Manages finance. Cheques are
also being drawn for payments of bills whenever payments are required through
cheques. For receipt of any cheques received from outside official, general
receipts are being passed in cash counter using tally ERP9.
2. Bills: -
Bills are being received from various suppliers and usually the purchase section
after getting the Material Receipts Information (MRI) from stores duly certified
for quality and quantity, sends bills to finance section in the related files and
these bills are processed and entered in the control register and after scrutiny
from pre-auditors bills are put up for passing before MD through Assistant
Manager Finance. After the approval of MD the cheques are drawn in the name
of the parties. File with entries of cheque No. and a copy of the voucher is
returned to purchase section / to the concerned section. And the payment
vouchers are accounted in com
3. Transportation Bills: -
Following are the types of transportation bills:
i) Procurement Transportation Bills (PTC)
ii) Distribution Transportation Bills (DTC)
iii) Mobile veterinary root bills
iv) Cattle feed transportation bills
v) LN2 transportation bills (Liquid Nitrogen)
vi) Hire vehicle transportation bills
4. Pay Bills: -
Attendance data are being received from time
office as per the punch card entries, further the
attendance of chilling center staff and field
staff are being received from concerned
section once in a month duly certified by
section needs. Based on these attendance
extracts pay bill of all the 950 employees of
the milk union are being prepared through
computers and salary is being distributed
through Canara Bank main Branch, Syndicate
Bank of BDCC Bank by way of crediting the
account of respective employees in the Bank.
These are various heads under which salary
recoveries are made such as Employees
Provident Fund (EMF), Employees State
Insurance Scheme (ESI), Professional Tax,
LIC, GSLIS (Group Saving Linked Insurance
Scheme), pay advance, Bank loan and such
other deductions under about 45 account
heads. These salary recoveries are being sent
to respective departments such as Regional PF
commissioner, ESI office,
Professional Tax Office, LIC of India,
different banks where employees avail loans
through cheques. The account section prepares
salary.
5. Accounts: -
The functions of account section are:
• To maintain record of day-to-day
transactions, update entries in computer.
• Prepare monthly nominal accounts.
• Prepare annual financial statements such as
receipt and payments, trading, and P/L a/c and
balance sheet and also to produce the same to
statutory auditors and get it audited
Sources of Finance:
The main source of finance is sales
realization (Retained Earnings). Sales are
purely on cash / cheques basis. As the nature
of the product is highly perishable i.e., that
milk and other milk products. Hence because
of this the product needs to be immediately
sold to the end users, as result money is
generated immediately and routinely. Hence
this forms the only source and can be
classified as short-term source finance. The
other products of milk and as their perish
 ability period is little more i.e., for a products
of 3-4 months and sales are realized and
money gained out of it can be classified as
long-term source of finance. Sometimes they
even get grants from the government.
The Union had an approximate turnover of
Rs. 692.82 crores in the year 2010-11 as against
Rs. 527.76Crores for the year 2009-10.

OPERATIONS
MILK PROCUREMENT
The Milk produced by 99405 farmers at
village level will be collected every day
morning and Evening at DCS. Under Clean
Milk Production program, to maintain the
freshness & quality of the milk 121 Bulk
Milk Coolers covering 377 DCS of Total
Capacity 1,92,802 ltrs were installed at DCS
level. During the year the Unions daily
average milk procurement is 9.32 Lakh Kgs,
which works out to be 551 kgs per day per
DCS. The milk procurement has increased by
2.15 % when compared to the last year.
Bamul is offering the most remunerative milk
procurement price to member producers. The
operational efficiency is reflected on
procurement prices paid to the member
producers. The average milk procurement
price paid during the year was Rs. 19.06 for
every Kg of Milk supplied to the Union,
which is 80% of total cost of production
Milk collected at DCS will be transported to
Chilling Centers, through 102 Milk Procurement
Can Routes, by traveling 16,775 KM’s every
day. 23 Bulk Milk Cooler (BMC) Routes are
also in operation, which collects milk from 121
BMC centers of 373 DCS directly transported to
Bangalore Dairy through insulated tankers.
Cost consumption at BAMUL;
Transportation 4%
Process 5%
Packing 3%
Retail margin 3%
Sales & administration 6%
Miscellaneous 5%
Interest and bank charges 2%
Milk purchase 72%
QUALITY CONTROL DEPARTMENT
Functions:
The main function of quality control section is
to control the quality and produce best quality
products. In Q.C section, the milk is tested
before processing and even after processing.
Before processing the milk, it is tested for
adulteration, fat content in the milk. Milk 8% is
rejected and above 8% of fat is accepted. After
the mi8lk is processed again, it is tested for
bacteria fat contents, acidity etc… Then the
reports are prepared after conducting tests. Then
these reports are further submitted to KMF for
further clearance and approval. If my defects are
found, then KMF notifies and recommends for
further better performance
Quality Control Techniques Adopted:
The various tests conducted in order to maintain
the quality of milk are as under:
1. Garber Test: - To know the fat content present
in the milk. It is mixed with sulphuric acid.
(MILK + H2SO4)
2. Milk Test: - To know the fact content present
in the milk through electronic device.
3. Lactometer: - To know the stability of the
milk and is conducted by mixing the milk with
water and using lactometer, stability is tested.
If milk water quantity is more in the milk the
lactometer will immerse inside.
• MBRT test and methylene blue radiatic
Test.
• Acidity Test.
• PFA Test and Prevention of food
Adulteration Test.
PROCEDURE

A Study of the organization design

A review of choice in design is the
determination and start of the general approach
and strategy adopted for a particular
organisational study. The research has
undertaken a comprehensive plan of the
sequence of operation for the descriptive study
to achieve the research objectives with the
arrangement of condition for collection and
analysis of data.
Primary Data :
• This is the process where first hand
information was collected. The research
derives it after completing certain
activities. Primary data is collected
directly from the dairy.
SECONDARY DATA :
• The Secondary Data is readily complied
data from statistical statements and other
sources. The data can be obtained from
either published or non published sources.
Structure:
The organization chart and accompanying
baggage that show who reports to whom and
how tasks are both divided and integrated.
Since BAMUL is a co-operative sector unit.
The structure of the organization is democratic.
Major decision however is taken is at top-level
management of the company.
MIS SECTION
.
All the activities have been controlled by system in
BAMUL. The whole organization is automated &
computerized.
There are 2 types of software, operating in
BAMUL.
• ERP-enterprise Resource planning. •
Production process software.
The ERP is mainly used for business process. This
software is named as DOIS- Dairy operating
information system. DOIS is in ORACLE &
fronted is D2K that is developer 2000 & backend
tool is my SQL data base. Here the modules
 covered are finance, sales, marketing, &
production & engineering. The whole organization
is 100% computerized & they have RAS-
Rockwell Automation software & PLC-
programmable logic controller’s soft ware. They
have IBM windows server & LAN- Local Area
Network connection. There
are 130 systems in the union & even chilling
centers & even at societies are fully computerized.
Through online they will transfer data to chilling
centers through ORACLE software. They have
AMCU- Atomized Milk Cleaning unit for
cleaning purpose.

BAMUL at Glance
An ISO-22000:2005 & ISO-9001:2000
Certified
Procurement & Input
Inhabited Villages
Milk Producer Members 3
Dairy Co-operative Societies
Milk Procurement Routes + BMC
Routes
Artificial Insemination Centers
Single
Cluster
Processing Plants Capacity Pro
Bangalore Dairy 7,30,12
6,00,000 LPD
Anekal Chilling Center 57,07
60,000 LPD
Byrapatna Chilling Center 96,50
60,000 LPD
Doddaballapura Chilling Center 78,97
60,000 LPD
Hosakote Chilling Center 1,25,96
1,50,000 LPD
Solur Chilling Center 93,71
60,000 LPD
Vijayapura Chilling Center 88,60
1,00,000 LPD
Kanakapura Chilling Center 86,69
60,000 LPD
Bulk Milk Coolers 1,02,05
1,46,000 LPD
Marketing & Sales
Number of Distribution Routes 196
Retailers 1067
Whole Sale Dealers 35
Franchisee Outlets 30
Milk Parlors 29
Transporter Cum Distributor 14
Finance 2007-08
Total Share Capital (Rs in Lakhs) 1
Annual Turnover (2008-09) (Rs 50
in Lakhs)
Net Profit (2008-09) (Rs in Lakhs)
Mckinsey’s 7S Model
Let's look at each of the elements specifically:
• Strategy: the plan devised to maintain and
build competitive advantage over the
competition.
• Structure: the way the organization is
structured and who reports to whom.
• Systems: the daily activities and procedures
that staff members engage in to get the job
done.
• Shared Values: called "superordinate goals"
when the model was first developed, these
are the core values of the company that are
evidenced in the corporate culture and the
general work ethic.
• Style: the style of leadership adopted.
• Staff: the employees and their general
capabilities.
• Skills: the actual skills and competencies of
 the employees working for the company.
1. Shared Value: It means the central belief and
attitudes of the organization. The
core values of the organization is as follow
a. Leadership
b. Responsive and Fairness
c. Credibility
Employees have to work using these values and
employees are evaluated on these
basis.
1. Strategy: It means the plans to reach the
target audience and plans advised to
maintain and build competitive advantage. The
strategies are used by the organization are as
follows.
a. Protect and penetrate
b. Data driven
c. Extend and diversity
Structure.
Top level managers are act as facilitators of the
resources to the team of
employees motivate them to accomplish
organization goal with achieving personal goal.
2. Systems: It means the procedures, processes
and routine that characterizes how
important work is to be done. Organization has
fixing a target of work to every team which has
to be performed by the employees in the
supervision of the team leader. Performance
appraisal is done through self-appraisal and then
team managers will rate their subordinates and
totally it is done according to the level of
hierarchy.
3. Staff: top level the age of employees are more
than 45 years.
4. Style Employees have to report to their team
manager about their work and solve their
problems by discussing with the group.
5. Skill: Employees who is working in the
organization has following skills
a. Leadership
b. Programming

FINDINGS
Following are the findings during the study: 
BAMUL is serving the rural region and helping
for their upliftment,
by way of procuring milk through poor farmers
through its formed
societies and paying them fair returns. It is
contributing for
economic up liftment of farmers.
 BAMUL is even serving the society and its
customer by providing
better quality milk and milk products.
 BAMUL is earning profit year after year and
it is not confronting
any financial problems.
 BAMUL is equipped with fully automatic
systems which ensures
total quality maintenance (function)
 It has got its own quality control department
with fully equipped laboratory and equipment
that help detecting any adulteration or any such
other defects.
 Through the use of advanced technology,
BAMUL provides its
customers bacteria free and balance nutritious
milk (product augmentation)
 BAMUL provides training and education
programme that creates
legal awareness about social and economic
upliftment among rural
people, especially women.
The whole system is so equipped that hygiene is
maintained in every part of production

CONCLUSION
BAMUL is the no.1 milk diary in India. It has
unique features such as No Profit No Loss
motive, it acts as mediator between farmers
and the public. It gives social commitment to
farmers and sells its products at convenient
price for customers.
It was a great experience coming to Bangalore
Diary and doing my in plant here. I got an
exposure of the corporative world. I got a
chance to compare our theory with the
practicality. By studying about the BAMUL
organization I got to know how the people work
in the organization. It was a great experience in
BAMUL knowing how milk is processed and
other products and also how it is good for our
health. I gained lot of knowledge.

BIBLIOGRAPHY
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