Shimul and Eeshwar Traders

COMPANY 1
SHIVAMOGGA(D) CO-OPERATIVE MILK PRODUCERS SOCIETIES

UNION LIMITED.
CHAPTER 1
INDUSTRY PROFILE
1.1 Introduction to Indian Dairy industry:
The Department of Animal Husbandry, Dairying, and Fisheries, which falls under
the central Ministry of Agriculture, is responsible for all the matters relating to dairy
development in the country. This department provides advice to the state governments and
Union Territories in formulating programs and policies for dairy development. It also
looks after all the matters relating to production and preservation of livestock farms (cattle
and sheep).
Milk production is important in India, as milk is one of the main sources of protein
and calcium for a large vegetarian population. Dairying provides a livelihood for more
than 72 million Indian farmers as well as an additional income for a large number of rural
families. It is also a means for women to participate in the economic activities in the rural
areas.
The highest milk producer in the entire globe – India boasts of that status. India is
otherwise known as the ‘Oyster’ of the global dairy industry, with opportunities galore to
the entrepreneurs globally. It is the world’s largest consumer of dairy products,
consuming almost 100% of its own milk production. Dairy products are a major source
of cheap and nutritious food to millions of people in India and the only acceptable source
of animal protein for large vegetarian segment of Indian population, particularly among
the landless, small and marginal farmers and women.
Anyone might want to capitalize on the largest and fastest growing milk and milk
products’ market. The dairy industry in India has been witnessing rapid growth. The
liberalized economy provides more opportunities for MNCs and foreign investors to
release the full potential of this industry. The dairy industry plays an important role in the
socio-economic development of India.
The dairy industry in India is instrumental in providing cheap nutritional food to

the vast population of India and also generates huge employment opportunities for people
in rural places.
The main aim of the Indian dairy industry is only to better manage the national
resources to enhance milk production and upgrade milk processing using innovative
technologies.
1.2 Origin of the Industry:
In 1937, “Lucknow Milk Products co-operative Union limited” has set up National
Dairy Development Board (N.D.D.B) was established on 25 September 1965 under the
society’s registration Act 1950. It was a non-profit making organization.
Operation Flood was a rural development program started by India's National

Dairy Development Board (N.D.D.B.) in 1970. One of the largest of its kind, the program
objective was to create a nationwide milk grid. It resulted in making India the largest
producer of milk and milk products, and hence is also called the White Revolution of
India. It also helped reduce malpractices by milk traders and merchants.
Operation Flood has helped dairy farmers, direct their own development, placing
control of the resources they create in their own hands. A 'National Milk Grid', links milk
producers throughout India with consumers in over 700 towns and cities, reducing
seasonal and regional price variations while ensuring that the producer gets a major share
of the price consumers pay.
The bedrock of Operation Flood has been village milk producers' cooperatives,
which procure milk and provide inputs and services, making modern management and
technology available to members. Operation Flood's objectives included:
 Increase milk production ("a flood of milk").
 Augment rural incomes.
 Fair prices for consumers.
Program implementation as below:
Gujarat-based cooperation "Anand Milk Union Limited", often called SAMUL,

was the engine behind the success of the program, and in turn became a mega company
based on the cooperative approach. Tribhuvandas Patel was the founder Chairman of
AMUL, while Verghese Kurien was the chairman of N.D.D.B at the time when the
program was implemented. Verghese Kurien, gave the professional management skills and
necessary thrust to the cooperative, and is considered the architect of India's 'White
Revolution' (Operation Flood).
The National Dairy Development Board thus was created to promote, finance and
support producer-owned and controlled organizations. N.D.D. B’s programs and activities
seek to strengthen farmer cooperatives and support national policies that are favourable to
the growth of such institutions. Fundamental to N.D.D. B’s efforts are cooperative
principles and cooperative strategies. The main aim to set up the board was to accelerate
the pace of dairy development in the country and attract new investments. In 1999 India
became the largest producer of milk primarily due to the efforts of the co-operative
movement initiated by the National Dairy Development Board (N.D.D.B).
1.3 Overview of the Indian Dairy sector:
Reach:
The Dairy Cooperative Network (As on March 2017)

 Includes 177 milk unions operates in over 346 districts
 Covers 1,33,349 village level societies
 Is owned by around 13.9 million farmer members of whom 3.9 million were
women.
Milk Production:
 India's milk production increased from 21.2 million MT in 1968-69 to 104.8
million MT in 2017-18 and to 110 million MT in 2017-18(Anticipated).
 Per capita availability of milk was 252 grams per day in 2017-18increased from
241grams per day in 2017-18, up from 112 grams per day in 1968-69.
 India's 3.8 percent annual growth of milk production between 1997-98 and 2017-
18 surpasses the 1.8 per cent growth in population; the net increase in availability
is around 2 per cent per year.
Innovation:
 Bulk-vending - saving money and the environment.
 Milk travels as far as 2,200 kilometres to deficit areas, carried by innovative rail
and road milk tankers.
 Automatic Milk Collection Unit (AMCU) and Bulk Milk Cooler (BMC) at grass
root level – preserve quality and reduce post-procurement losses.
Macro Impact:
 The annual value of India's anticipated milk production amounts to more than
Rs.1,430 billion in 2017-18.
 Dairy cooperatives generate employment opportunities for around 13.9 million
farm families.
 Livestock contributes about 25.6 per cent to the GDP from agriculture.
 About 22.45 million people work in livestock sector, which is around 5.8% of the
total work force in the country.
Source: National Dairy Development Board (N.D.D.B) as on March, 2017.
1.4 Indian (Traditional) milk products:
There are a large variety of traditional Indian milk products such as:
Makkhan - unsalted butter.
Ghee - butter oil prepared by heat clarification, for longer shelf life.
Kheer - a sweet mix of boiled milk, sugar and rice.

Basundi - milk and sugar boiled down till it thickens.
Rabdi - sweetened cream.
Dahi - a type of curd.
Lassi - curd mixed with water and sugar/ salt.
Channa/Paneer - milk mixed with lactic acid to coagulate.
Khova - evaporated milk, used as a base to produce sweet dishes.
The market for indigenous based milk food products is difficult to estimate as most
of these products are manufactured at home or in small cottage industries catering to local
areas.
1.5 India's milk product mix:
Fluid Milk 46.0%
Ghee 27.5%
Curd 7.0%
Butter 6.5%
Khoa (Partially Dehydrated Condensed Milk) 6.5%
Milk Powders, including IMF 3.5%
Paneer&Channa (Cottage Cheese) 2.0%
Others, including Cream, Ice Cream 1.0%
Source: www.mapsofindia.com
1.6 Major players of Dairy industry:

Company Brands Major products
Nestle India Limited Milkmaid, Cerelac, Sweetened condensed milk, malted

Lactogen, Milo, foods, milk powder and dairy
Everyday whitener
Milkfood Limited Milkfood Ghee,ice cream, and other milk

products
SmithKline Beecham Limited Horlicks, Maltova, Malted Milkfood, ghee, butter,

Viva, Boost powder milk, milk fluid and
otherMilk based baby foods.
Indodan Industry Limited Indana Condensed milk, skimmed milk

powder, whole milk powder, dairy
milk whitener, chilled and
processed milk
Gujarat Co-operative milk Amul Butter, Cheese and other products

Marketing Federation Limited
H.J. Heinz Limited Farex, Complan, Infant milkfood, Malted milkfood

Gluctose,
VitamilkBonniemix,
Britannia Milkman Flavoured milk, Cheese, Milk

powder, Ghee
Cadbury Bourvita Malted food
Source: aavinmilk.com
1.7 Future prospects of the industry:
India is the world's highest milk producer and all set to become the world's
largest food factory. In celebration, Indian Dairy sector is now ready to invite NRIs and
Foreign investors to find this country a place for the mammoth investment projects. Be
it investors, researchers, entrepreneurs, or the merely curious – Indian Dairy sector has
something for everyone.
India contributes to world milk production rise from 12-15%& it will increase
up to 30-35% by the year 2020.
CHAPTER 2
COMPANY PROFILE
2.1 Introduction:
Shimoga District Co-operative Milk Producers’ Societies’ Union Limited

(SHIMUL) is located in Machenahalli, 12 kms from Shivamogga and 6 kms from
Bhadravathi.
The Union is located in the central part of the state of Karnataka and the milk shed
has got the varied ranging from tropical to temperate.
It produces about 8 dairy products and distributes or sells other products of KMF
in its jurisdiction.
Speciality of the Union: Union which has promoted growing herbal medicinal plants by
women farmers.
2.2 Background and Inception of the company:
Under the World Bank aided Karnataka Dairy Development Projects, the activities
on Dairy development were taken up in the year 1975. The SHIMUL was established on
25.11.1987 & registered under Karnataka co-operative act, having the jurisdiction to the
entire Shivamogga, Davangere district, & five taluks of Chitradurga district. Later the
union was extended to entire Chitradurga district. Its initial i-nvestment is 24.17 lakhs with
10 TLPD.
The union undertook the work of organization of milk co-operatives in ‘AMUL

Pattern’ with the main objective of socio-economic reformation of the farmers in the rural
areas through dairying as subsidiary occupation.
The main goal of these co-operative milk producers is to avoid the exploitation of
producers, by the middlemen. Achieve economies of scale of rural milk producers by
ensuring maximum returns and at the same time providing wholesale network of co-
operative organization should build a strong bridge between masses of rural producers and
millions of urban consumers and achieve a socio-economic revolution in the village
community.
2.3 Present status of the company:
Dairy Co-operative Societies 1294

Members 1,46,239
Daily Procurement of milk 5,17,432 LPD
Milk sales 1,97,492 LPD
2.4 Nature of business carried:

 Milk procurement:
Presently there are 182 milk procurement routes operating through which Union
is procuring an average of5,17,432LPD.
To increase milk production and productivity, technical input services are being
provided to producer member of the union.
 Manufacturing and distribution:
It manufactures for about 13 products such as milk, curds, butter milk, ghee, peda,
cashew burfi, kova, nandini laddu, nandini bite, mysorepak, paneer,coconut burfi,
in two production centers that is Shivamogga, Davangere and chitradurga.
The production capacity of the Union in Shivamogga unit is 1,00TLPD &

Davangere is 60TLPD along with seven chilling centers in Honnali with 60TLPD,
Anandapurwith 30TLPD, Chitradurga 50TLPD, Tadaganiwith40TLPD each, B.G.
kere 05TLPD, Challakere with 10TLPD each.
It also sells other Nandini products such as Mysore pak, Good life milk,
Gulabjamoon mix, Dharwadpeda, Flavoured milk, Khova, Kunda& other Nandini
products by procuring from other Unions of KMF.
Presently it has 1351 dealers, 13parlors, 2 A.T.M (All Time Milk) parlors, 32
franchisee parlors, 36 milk distribution vehicles, 11-day counter sales vehicles.
It distributes milk with totally 46routes; 23 routes in Shivamogga,14 routes in

Davangere including a adock route,09routes in Chitradurga.
Milk procurement and Sales at present:

o Milk procurement:5,17,432 LPD
o Liquid milk sales: 1,97,492 LPD
o Curds sales: 23,574 LPD
o Peda sales: 1,655Kgs per day
o Ghee sales: 70,365 LPD
o Veterinary facilities for cattle:
There are 15veterinary routes operating and attending emerging cases.
 Artificial animal breeding:

Artificial insemination (AI) is being done through AI centers.
 Feed and fodder development programme:
Cattle feed and high yielding varieties of fodder being supplied to producer
along with technical advice.
 Step training programme:
Supportive to training and employment programme for women- to those
women who interested in dairying.
2.5 Vision, Mission and Quality Policy:
Vision Statement:
To consolidate the gains of dairying achieved in the state of Karnataka and with a
view of efficient chill, process and market ever development and increasing milk
procurement with an utmost emphasis on the quality and in the process conserve the socio-
economic interest of rural milk producer, the Government of Karnataka through KMF has
proposed to undertake several project with financial and technical support of N.D.D.B for
which an MOU was signed between Government of Karnataka and N.D.D.B.
Mission statement:
Shimoga district Co-operative Milk producers’ Societies’ Union Limited

(SHIMUL) is committed to provide maximum possible price for the milk supplied by its
members and provide necessary inputs to enhance milk production while ensuring
economic viability of the union and is also committed to provide quality milk and milk
products to consumers and emerge as one of the top most Milk unions of the co-operative
dairy industry in the country.
SHIMUL’s Quality policy:
SHIMUL is committed to producer’s welfare through customer delight adopting

continuous improvement and ensures pure and hygienic milk & milk products.
2.6 Products’ profile:
Brand name of products:
Logo of Nandini:
Tag line of Nandini: “A Milk Brand Trusted by Millions”
Motto of KMF products: “Quality Excellence from Cow to Consumer”
Pasturised toned milk:
Karnataka’s most favourite milk. Nandini toned fresh milk

containing 3.0% fat & 8.5% SNF is the best choice for all
purposes. Available in 200ml, 500ml and 1 litre pouches.
Shubham Milk:
Nutritious creamy milk with 4.5% fat & 8.5% SNF. Suitable for
all purposes. Available in 500ml & 1 litre pouches.
Homogenised cow’s milk:
Nutrient-rich homogenised milk with 3.5% fat & 8.5% SNF. Enjoy
uniform thickness and extra creamy feel till the last drop, thus
preparing more cups of tea/coffee out of every pack. Available in
500ml & 1 litre pouches.
Curd:
Fresh curd that tastes just like traditional home-made curd. Can be
consumed as such or in combination with cooked rice or added as
an ingredient in certain dishes. Available in 200 gms& 500gms
pouches.
Spicy Butter milk:
Fresh butter milk blended with quality spices to give that

enlivening spicy tang of traditional spiced butter milk. A drink
recommended after meals, for easy digestion. Available in 200ml
tetra brick packs and 200ml pouches.
Ghee:
A taste of purity, Nandini ghee, made from pure butter. It is fresh and pure with a
delicious flavour. Hygienically manufactured and packed in a special pack to retain the
goodness of Pure Ghee. Available in 50ml, 100ml, 200ml, 500ml, & 1litre sachets & in
200ml standy pouches & in 200ml, 500ml, 1 litre& 5 litre pet jars& also in 15 kg tins.
Ghee in Standy Pouches Ghee in Pet Jar Ghee in Sachet

Milk Peda:
Mouth-watering peda made from pure milk. One bite is enough

to fill the heart with its creamy milk flavour. Available in 25gms,
50gms sachets and in 100gms, 250gms packs. Paneer,
mysorepak, Cashweburfi ,nandinibite,
Khova:
Add khova to preparations like carrot halwa, gulabjamoonetc and

increase the richness of its taste. Available in 200gms packs. Can
be stored for 30 days when kept frozen.
Product name MRP(Rs)
Toned milk-1000ml 35.00
Shubam-1000ml 41.00
Shubam-500ml 21.00
Curd-500gm 21.00
Curd-200gm 10.00
Butter milk-200 ml 6.00

Ghee-1000ml 450.00
Ghee-200ml 96.00
Ghee-tin(15kg) 7200.00
Nandini goodlife-1000ml 46.00
Nandini goodlife-500ml 23.00
Peda-250grams 85.00
Peda-10grams 36.00
Kova bulk 300.00
Dharwad peda 85.00
Kundha 100.00
Mysore pak-250 grams 100.00
Jamoon mix-200grams 40.00
Source: Product brochures of SHIMUL.
2.7 Area of operation:
Although SHIMUL is predominantly operating in its region. It also supplies milk

to other states of India and exports some of its products to neighbouring foreign countries.
Regional:
SHIMUL is operating in 19 taluks of 3 districts that is 7 taluks in Shivamogga, 6

taluks in Davangere and Chitradurga each. It distributes milk with totally 43 routes;16
routes in Shivamogga,13routes in Davangere including an adock route, 14 routes in
Chitradurga.
National:
On the basis of availability, the excess milk will be sent to the states like
Maharashtra, Goa, Andhra Pradesh and Delhi.
Global:
In rainy season, the milk production will convert milk into milk powder. The milk
powder will be exported to the countries like Burma, Srilanka and Singapore through
KMF.
2.8 Ownership pattern:
Source: www.kmfnandini.coop
The dairy co-operatives were established under the ANAND pattern in a three-tier
structure with the Village Level Dairy Co-operatives forming the base level, the District
Level Milk Unions at the middle level to take care of the procurement, processing and
marketing of milk and the Karnataka Milk Federation as the Apex Body to co-ordinate the
growth of the sector at the State level. KMF has 13 Milk Unions throughout the State
which procure milk from Primary Dairy Cooperative Societies (DCS) and distribute milk
to the consumers in various Towns/Cities/Rural markets in Karnataka. SHIMUL- a
District Level Milk Union at the middle level is one among the 13 milk unions of KMF.
SHIMUL is a district level milk union of 772 village level co-operative societies
affiliated to it and 1,16,602number of members for the milk union. The milk producers are
the members or owners of the co-operative societies’ union.
2.9 Competitors’ information:

 Sri Krishna Milks Private Limited:
 Situated at: Kirwatti, Yellapur Taluk, Karnataka.
 Established: 1989.
 Own Funds: Rs. 18.80 million (as on 31.03.2004).
 Gross Block: Rs. 56.03 million (as on 31.03.2004).
 Turnover: Rs. 211.27 million (during the year 2003-04).
 Products: Branded sachet milk, Ghee, Flavoured milk, Butter, Lassi,
Curds, Butter Milk
 Market: North Kanara, Hubli-Dharwad, Belgaum, Bagalkot, Hospet,
Davangere and Goa.
 Production capacity: This plant handles about 50000 litres milk per
day.
 Arokya milk:
 Hatsun Company, India’s largest private dairy.
 Hatsun started marketing fresh milk in pouches from 1993.
 Hatsun is a USD 250 million company, listed in the Mumbai Stock
Exchange.
 It started as a creamy dream in 1970: Arunice-creamsin Chennai.
 Hatsun handles a total 1.8 million litre a day.
 Arokya milk is fortified with 4.5% butterfat.
 Distribution Stockists/Agents. They have a network of 30 Distribution
Stockists and over 1500 Agents in Tamilnadu / Bangalore.
 Loose milk sale:
 Market share is next to Nandini.
 Sale in union junction 60 TLPD.
 Majority of the milk is heavily adulterated and no uniform quality.
 Flexible payment system.
Price comparison of milk & curds of Nandini with Private Dairies:
(As printed on half litre packet-MRP in Rs)
Sl no. Type of milk Nandini Sri Krishna Arokya
1 Toned milk 10.00 12.00 12.00
2 Homogenized milk 11.00 _ _
3 Shubam milk 12.00 14.00 14.00
4 Curds(200ml) 06.00 8.00 8.00
5 Curds(500ml) 12.00 15.00 15.00
Source: Price comparison chart of SHIMUL
2.10 Infrastructural facilities:
SHIMUL has its corporate office at Machenahalli, Shivamogga. Its manufacturing

unit is located behind the office premises. The total area of SHIMUL is 21,09,542 sq. ft
being 11,26,026 sq. ft in Machenahalli, 52,272 sq. ft in Jedikatte, 2,17,800 sq. ft in
Honnali, 1,43,740 sq. ft in Davangere, 1,30,680 sq. ft in Chitradurga, 2,17,800 sq. ft in
Anandapur, 3424 sq. ft in Sagar and 2,17,800 sq. ft in Shikaripur.
Manufacturing plant is quite spacious with different divisions in it. Namely- Milk
division, Butter division, Peda making division, Ghee making division, Butter milk
division. It has two cars for office use.
2.11 Achievements and awards:
Milestones of SHIMUL:
 A Pilot Project was started to supply milk to Shivamogga and Bhadravathi towns
on 1963.
 Government Dairy at Shivamogga was started on 21-5-1971.
 KMF Procurement and Input (P&I) Wing was started on 1-4-1985.
 1985 – KMF has taken over the dairy.
 First Milk Procurement Route, Sahyadri, Honnali Taluk was started on Aug-
1985.
 The Shimoga Milk Union was registered on 25-11-1987.
 Co-operative Development Programme was in operation between 1990 & 1997
and it was funded by N.D.D.B.
 Step (Support to Training & Employment Programme for women) a pilot project
was started during Oct-1997 & it was funded by women & Child Development
Dept., GOI.
 The installation of LN2 distribution system-Oct 1999
 Launch of products:
o Ghee-1985
o Peda-1988
o Butter milk & Curds-1997
o Launch of Standardized Milk in 1993
o Launch of Toned Milk in 200ml sachet in 2000
 Chilling Centers/Dairies established:
o Chitradurga C.C – 16.09.1984
o Shivamogga Dairy – 01.08.1991
o Honnali C.C – 29.07.1991
o Anandapur C.C – 16.04.1991
o Tadagani C.C – 02.02.1999
o B.G.Kere C.C – 28.08.2004
o Sagar C.C – 05.01.2005
 Davangere Dairy:
Bathi co-operative dairy : 10.08.1969
Handing over Co-operative dairy to KMF : 05.04.1986

Expansion of capacity to 30,000LPD : 08.04.1993
Milk Pasteurization started from : 11.05.1998

MMPO Certification in 1993.

ISO 9001:2008 Certification in Nov 2008 applicable for processing,
manufacturing, marketing of milk and milk products (Excluding design and
development).
Awards:
 Best NGO award by Ministry of non-conservational energy in the year 1995-96
and also in the year 1996-97.
 Excellence award by the Institute of Economic studies, New Delhi in the year
1998.
 Quality mark – 2016 – 2017
 National energy conservation award in the year 2010.
 NDDB Excellence Award – 2016 – 2017
Shimoga Milk Union Conferred For National Energy Conservation Award

Source: The Hindu e-news paper of Dec 16th,2010
Dr.G.T.Gopal, Managing Director, Shimoga Milk Union receiving "National

Energy Conservation Award for the year 2010" by the union minister for power
Mr.Sushil Kumar Shinde on the occasion of "National energy conservation day" in
New Delhi on
Dec-14th.
2.12Work Flow Model:

FLOW CHART:
Chilling of Milk at 40 C to 120 C using a plate chiller
Pumping of chilled milk into insulated milk silo/road milk tanker
Storage of chilled milk in insulated tankers, milk in silo till it is taken for pasteurization
Pumping of chilled milk into Full Cooler Bulk Tanker (FCBT)
Pumping of milk into Hot Temperature at Short Time (HTST) pasteurize through flow
controller heating to 720C to 800C for 15 sec immediate chilling to 40C
Standardization/Separation of milk to required fat and SNF using cream separator during
HTS
Pumping of pasteurized milk in to insulated milk sil
Quality analysis
Pumping of milk in sterilized stamped pouches in FFS machines (1/2 ltr and 1 ltr)
Loading of pouches into washed clean creator
Storage of milk creates in cold store at 60C
Quality analysis-COB and Acidity
Dispatch
Figure 1: Work flow model
2.13 Future growth and prospectus for the company:
The long term objective- 2015 i.e., for the five years from 2017-18 to 2017-18is
to increase the milk procurement by 10.97% and milk sales by 11.2%.
Goals by 2010-11:
 To build 922 co-operative societies at the end of the year.
 To invest Rs. 18.94 lakhs in STEP program-a training program for women.
 Training program for 666 candidates with a cost of Rs.12.47 lakhs.
 Provide cross-breed cattle at 25% deduction and cattle insurance worth Rs.5.18
lakhs.
 To increase the artificial animal breeding to 1,13,300 during the year.
 To provide animal feeding of 24000 metric tonnes.
 Under the Fodder Development Program350 units of urea is scheduled to produce
nutrient dry fodder.
 To improve processing and quality of production it has planned to spend
Rs.1483.50 lakhs.
 Planned to expand the Davangere dairy capacity by 1TLPD with an expenditure
of 10 crores and other programs with Rs. 1109 lakhs.
 Aimed to increase the sales:
Milk to 152,000 LPD, Curds to 12000 Kg per day, Peda to 210 Kg per day,
Butter milk to 1100 LPD.
 Aimed at establishing milk parlors in Shivamogga and Bhadravathi Railway
stations.
 Aimed to increase milk dealers to 169, franchisee parlors to 15and day counters
to 560.
SKILL MATRIX:
1. Production department
SKILL HIGH MEDIUM LOW

Attention to detail 
Critical thinking 
Communication 
Dependability 
2.Financial department

Financial 
reporting
Analytical ability 
Budget 
preparation
communication 
3.HR department

Employee relation 
Performance 
management
Team work 
Worker’s 
compensation
Dept. of MBA, RNSIT, VTU, Belagavi Page 24

CHAPTER 3
MCKINSEY’S 7S FRAME WORK & PORTER’S FIVE FORCE MODEL.
McKinsey’s 7s model:
The 7s Framework of McKinsey is a management model that describes 7 factors

to organize a company in a holistic and effective way. Together these factors determine
the way in which a corporation operates.
There are 7 basic dimensions, which represent the core of managerial activities.
These are the ‘levelers’, which executes use to influence complex and large organizations.
Obviously, there was a concerned effort on the part of the originators of the model to coin
the managerial variables with words beginning with the letter S. So as to increase the
communications power of the model.

Source: McKinsey 7-S Frame work, from the book ‘In search of Excellence’ by
Thomas J Peters and Robert H Waterman
Application of 7s Model:
1. Structure:
The organization chart and accompanying baggage that show who reports to
whom and how tasks are both divided and integrated.
Since SHIMUL 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.

Organization Chart:
Figure 2: Organization structure of SHIMUL
2. Strategy:
 The strategies being adopted by the company: Encouraging rural farmers

to engage in dairy farming and producing more milk at less cost.


Providing market for the milk produced in rural areas by purchasing milk

at a fair rate throughout the year.


Providing good quality of milk and milk products to the people of urban

area by scientifically processing the milk obtained from rural area.


Creating harmonious environment where the human resources of the union
can perform at its best and being a communication bridge between

producers and consumers.
3. System:
MIS in SHIMUL:
Public enterprises like dairies are primarily meant to achieve socio-economic

objectives like fulfilling social needs for efficient management an efficient information
system is essential. Information is the lifeblood of an organization. Decision making and
planning at every level of management requires constant information.
MIS in SHIMUL performs five functions, which help the management to run the
organization without any problems. The functions are as follows:

 Collection of data

 Analysis of collected data


 Converting data into real and meaning information


 Providing all sections with necessary information
Quality system in SHIMUL:
The process for continuous improvement of the quality management system:
 Management responsibility for quality improvement


 Resource management

 Product realization

 Measurement, analysis, improvement of quality.

4. Style:
Style is one which top managers can use to bring about organization change. The
aspects of business most emphasized by members of the top management tend to be given
more attention by people down in organization. Reporting relationship may also convey
the style of the organization.
The reasons to support this are as follows:
 Whenever important decision are to be made, the whole staff is allowed to

participative in the decision making where by suggestions are sought and if found
appropriate are accepted and implemented.
 In SHIMUL instead of ‘Boss-Subordinate’ relationship among the employees
of the organization, superior acts as a guide and facilitator for his subordinates.
 The top management always encourages changes in the organization provided
they happen to be always ready to cope with different situation.
5. Staff:
Presently there are about 238 in SHIMUL.Employees are the functional unit of any
organization. The company contributes to the prosperity of the society as whole by
providing equal opportunities to all. The company provides training to get gainful, high
performance employees.

6. Skill:
The qualified personnel with required skills and competency are recruited and
selected for the required designation.
For example: for recruiting and selecting the manpower required by the production
department the criteria would be B. Tech (Dairy Technology) and Bachelor of Engineering
for maintenance of boilers, who have the capabilities and competencies to handle the
functioning of work smoothly.
7. Shared values:
The common feeling among the people in the SHIMUL is that they are meeting
the demands of the customers and fulfilling the expectations in the form of productions
and its variability. The employee also have belief that they are giving at the best possible
price to milk they procure from farmers. Value of SHIMUL:
 Honesty
 Discipline
 Transparency
 Cleanliness
 Total quality
 Self-reliance
 Co-operative free politics
 Respecting others opinions, emotions, thoughts, and feelings.

PORTER’S FIVE FORCES MODEL.
Porter's Five Forces is a model which identifies and analyses five competitive forces that
shape every industry and helps determine an industry's weaknesses and strengths. Frequently

used to identify an industry's structure to determine corporate strategy, Porter's model
can be applied to any segment of the economy to search for profitability and attractiveness.
Porter's Five Forces is a business analysis model that helps to explain why different
industries are able to sustain different levels of profitability.
The model was originally published in Michael Porter's book, "Competitive

Strategy: Techniques for analysing Industries and Competitors" in 1980. The model is
widely used to analyse the industry structure of a company as well as its corporate strategy.
Porter identified five undeniable forces that play a part in shaping every market and
industry in the world.
The forces are frequently used to measure competition intensity, attractiveness and
profitability of an industry or market. These forces are:
1. Competition in the industry;
2. Potential of new entrants into the industry;
3. Power of suppliers;
4. Power of customers;
5. Threat of substitute products.
Rivalry among competitors
Mergers and Acquisitions:
As such in the industry there are no mergers or acquisitions. However, if any MNC wishes to
enter through this route then the competition might be severe

Threats Of New Entrants:
Brand preferences and consumer loyalty:
There is an immense level of Brand Preference of Nandini milks in the minds of the people.
The level of preference specifically in the liquid milk sector is that they would go to other
retailer only if the retailer does not have Nandini milk.
Bargaining Power Of Supplier:
Here is appropriate bargaining power of the supplier. In olden days there were not any kind
of cooperative societies as the farmer was exploited. But nowadays the farmer’s rights are
protected under the cooperative rules and regulations, which ultimately results in moderate
power of bargaining from the supplier
Bargaining Power Of Buyer:
Cost of switching to competitor brands:
The switching of brands is seen very much in products such as ice cream, curd, milk
powders, milk additives etc. but it can be seen comparatively less in liquid milk category.
Even if the buyers shift to the other brands of milk, the value that they get is less than they
would get from consuming Nandini.
Threats Of Substitute
Availability of attractive priced substitutes:
Different substitutes are available for different category of products. There is ample
availability of low priced substitutes from local vendors and retailers.

CHAPTER 4
SWOT ANALYSIS
SWOT Analysis with reference to SHIMUL:
Strength:
 Good procurement potential.

 Nandini products have a good brand in the market
 Better quality of raw milk.
 Geographical location of co-operatives/ Dairies.
 ISO 9001:2008 & MsMPO certified dairy.
 Wide range of operation - 19 taluks covered in 3 districts of milk shed area.
 Insulated distribution vehicles.
Weakness:
 Wide gap between procurement and sales.

 Absence of separate product block.
 Poor advertisement and promotion.
 Lacking in training and development programs.
 Initiatives to open a separate Milk Union in Davangere district.
 Has not up to World Trade Organization standards.
Opportunities:
 Trapping loose milk sales.

 Growing demand for full cream milk.
 The Milk Union can produce still more products of KMF.
 Milk Union can go for technological advancements.

Threats:
 Private dairy competition in Procurement and Sales.

 Increased local loose milk sales.

CHAPTER 5
ANALYSIS OF FINANCIAL STATEMENT ANALYSIS:
5.1 Financial Statements of SHIMUL:
Manufacturing and trading account:
Purchases 2017-18 2016-17
Opening stock 2,68,95,931.40 232106655.45
Purchase of milk 74,97,79,553.91 4156765611.72
Fodder & other expenses 14,54,29,681.44 9096473770.55
Storage & transportation expenses 4,59,74,064.92 179900951.69
Processing & manufacturing expenses 8,01,73,076.90 327400002.52
Selling & distribution expenses 1,59,50,601.22 67501939.09
Trade profit 8,71,26,701.41 348233924.31
Total 1,15,13,29,611.20 6221556455.33

Sales 2017-18 2016-17
Milk & milk products sales 1,02,59,23,523.63 4894492382.76
Milk & milk products sales(through KMF) 7,75,08,594.80 1211552866.98
Closing stock 4,78,97,492.77 115511205.59
Total 1,15,13,29,611.20 115511205.59
Profit and loss account:

Income 2017-18 2016-17
Trade profit 8,71,26,701.41 348233924.30
Other incomes 45,88,659.67 39078033.10
Interest & dividends on investment 61,22,361.00 28781608.50
Grants ---
Total 9,81,88,722.08 416093566.00

Balance sheet:
Liabilities 2017-18 2016-17
Share capital 4,86,29,000.00 416093566.00
Reserves and surplus 3,21,63,805.64 887882277.41
Loans 3,47,05,382.36 53685662.36
Grants 2,97,35,604.00 3263190.19
Current liabilities 22,44,95,391.45 761306168.81
P & l a/c 31,28,241.94 72597691.60
Total 37,28,57,425.39 1920412990.37
Assets 2017-18 2016-17
Fixed assets 12,56,45,959.11 62247090.94
Investments 6,79,16,207.00 421479960.46
Current assets: 17,92,95,259.28 10366859338.97
Stock in hand 4,78,97,492.77 115511205.59

Sundry debtors 21,97,182.11 4426106.47
Cash & bank balance 1,69,29,261.69 475278828.04
Loans & advances 11,22,71,322.71 441469798.87
Total 37,28,57,425.39 1920412990.37
Source: Annual reports of SHIMUL

5.2 Ratio Analysis:
 Current ratio:

Current ratio= Current assets/Current liabilities
Year Current assets Current liabilities Current ratio
2017-18 17,92,95,259.28 22,44,95,391.45 0.79:1
2016-17 15,75,63,204.26 25,01,23,545.27 0.63:1
Inference: The above table shows the current ratio of the organization in the year 2017-
18 and 2017-18is 0.79:1 and 0.63:1 respectively. The current ratio has decreased from
2017-18 to 2016-17. Its shows the organization’sshort term solvency hasworseneddueto
decrease in current assets and increase in current liabilities of the organization.
 Quick ratio:
Quick ratio=Liquid assets/Current liabilities
Year Liquid assets Current liabilities Quick ratio
2017-18 13,13,97,766.51 22,44,95,391.45 0.59:1
2016-17 11,13,08,011.19 25,01,23,545.27 0.45:1

Inference: The above table shows the quick ratio of the company in the year 2017-18 and
2017-18was 0.59:1 and 0.45:1 respectively. Thus the quick ratio of the company has
declined because of the decrease in liquid assets. This shows the SHIMUL’s liquidity
position has declined.
 Debt Equity ratio:
Debt Equity ratio=Debt/Equity
Year Debt Equity Debt Equity ratio
2017-18 3,47,05,382.36 4,86,29,000.00 0.71:1
2016-17 3,73,91,513.36 5,2152,000.00 0.72:1
Inference: As per the above table the organization’s debt equity ratio has slightly
increased from 0.71:1 in the year 2017-18 to 0.72:1 in the year 2016-07. It can be
interpreted that the organization’s financial structure is deteriorating as the increase in debt
will put the company in risk.

 Gross profit ratio:
Gross profit ratio=Gross profit/Net sales X 100
Year Gross profit Net sales Gross profit ratio
2017-18 8,71,26,701.41 1,10,34,32,118.43 7.9%
2016-17 9,89,22,911.14 1,37,70,57,002.01 7.18%
Inference:
The above table depicts the company’s gross profit ratio in the year 2017-18 and 2017-
18is 7.9% and 7.18% respectively. There is a decline in the ratio. This shows that the
SHIMUL’s ability to cover operating costs has been decreased, which in not a good sign
to the company.
 Net profit ratio:

Net profit ratio=Net profit /Net sales X 100
Year Net profit Net sales Net profit ratio
2017-18 16,27,331.98 1,10,34,32,118.43 0.15%
2016-17 87,11,667.12 1,37,70,57,002.01 0.63%
Inference: As observed from the above tabulation the net profit ratio of the organization
in the year 2017-18 and 2017-18is 0.15% to 0.63% respectively. There is a significant

increase in the net profit ratio, which is a good sign. This is an indication of decreasing
indirect expenses in the company.
 Operating cost ratio:
Operating cost ratio=Operating cost/Net sales X 100
Year Operating cost Net sales Operating cost ratio
2017-18 1,09,49,94,822.58 1,10,34,32,118.43 99.24%
2016-17 1,36,77,41,407.67 1,37,70,57,002.01 99.32%
Inference: As observed from the above table the operating cost ratio of the organization
in the year 2017-18 and 2017-18is 99.24% and 99.32% respectively.This can be
interpreted the organization is maintaining a stable operating ratio.
 Return on assets:

Return on assets=Profit before interest and tax (PBIT)/Total assets X 100.
Year PBIT Total assets Return on assets
2017-18 73,61,358.52 37,28,57,425.39 1.97%
2016-17 1,46,58,754.19 38,61,04,323.37 3.8%
Inference: It is shown in the above table that the company’s return on assets in the year 2017-
18 and 2017-18is 1.97% and 3.8% respectively. The ratio has increased due to a significant
increase in PBIT. This indicates that there is an improvement in effective utilization of the
SHIMUL’s assets to generate profit.

 Return on capital employed (ROCE):
ROCE=Adjusted net profit/Capital employed X 100.
Year Adjusted net profit Capital employed ROCE
2017-18 12,38,997.52 14,83,62,033.94 0.84%
2016-17 78,15,781.64 13,59,80,778.10 5.75%
Inference: From the table it is known that the company’s ROCE in the year 2017-18 and
2017-18is 0.84% and 5.75% which has drastically increased. This is because of the
increase in adjusted net profit. This is a good sign to the organization as it is yielding
more return for the capital employed in the business.
 Earnings per share(EPS): EPS=Profit after tax/Number of shares.
Year Profit after tax No. of shares EPS
2017-18 16,27,331.98 48,629 Rs 33.46
2016-17 87,11,667.12 52,152 Rs 167.04
Inference: As per the above table the company’s Earnings per share (EPS) in the year in
2017-18 and 2017-18is Rs 33.46 and Rs 167.04 respectively. Thus there is a huge increase
in the EPS of the company. This is a good sign to the company as the earnings of each
share have been increased. This is due to significant increase in net profit of the company.

CHAPTER 6
LEARNING EXPERIENCE


I got a practical experience about the working of an organization.


I learnt how to relate the theoretical concepts learnt in classroom to the organizational

functioning.



I learnt how managerial concepts are applied in an organization.


I have observed and realized the importance of division of work among various

personnel according to their skills, ability and experience.


I have learnt that unity of command is important for attainment of any task effectively.
The company follows this approach whereby a subordinate receives instructions only

from one superior. This ensures that the job is done with minimum confusion.


I have observed the necessity of team spirit for a successful organization. In any
organization, employees have to work in unity. In this organization, a have seen
employees sharing a high level of team spirit, understanding and coordinating which

have contributed to its success.



I have observed how important one’s attitude is in an organizational context. If one has
a positive attitude, that employee will excel in work and if one has a negative attitude,
that employee will be dissatisfied and will not be successful and contribute to

organizational interests.


I have realized that finance department of the organization has got the responsibility
of careful planning, utilization of the financial resources, and well-structured approach
in raising funds and systematic design in undertaking several schemes, projects and
investments. These activities have helped the organization in continued profit and

progress.

COMPANY 2
ESHWARR STEELTECH PVT LTD
CHAPTER 1
Indian Foundry Industry Profile
1.1 Introduction to The Internship:
 To provide an opportunity for students to apply theoretical concepts in real life

situations at the work place
 To enable students, discover their professional strengths and weaknesses and align them
with the changing business environment.
 To sharpen domain knowledge and provide cross functional skills.
 To enable students to manage to manage resources, work under deadlines, identify and
carry out specific goal-oriented tasks.
 To sensitize students to the nuances of corporate culture and familiarize them with the
corporate code of behaviour.
1.2 Indian foundry industry Overview:
The Indian foundry industry is well established industry in the country. According to the recent
world census of casting by modern casting USA India ranks 2nd largest casting producer
producing about 7.44 million tons of various grade of casting as per international standards.
The various type of casting which are produced are ferrous, non-ferrous aluminum alloy,
graded cast iron, ductile, iron, steel etc for application in automobiles, railways, pumps
compressors and valves, diesel, engines, cements / electrical / textile machinery, sanitary pipes
and fittings etc and castings for special applications. However grey iron castings are the major
share approx 70% of total castings produced. There are approx 4500 units out of which 80%can
be classified as small-scale units and 10% each as medium and add large scale units. Approx
500 units are having international quality accreditation. the large foundries are modern and
globally competitive and are working at nearly full capacity.
The industry directly employs about 5,00,000 people and indirectly about 1,50,000 people and
is labour intensive . The small units are mainly development on manual labour. However ,the

medium and large units are semi/largely mechanized and some of the large units are world
class. Most foundries use cupolas using LAM Coke. There is growing awareness about
environment and many foundries are switching over to induction furnaces and some units in
Agra are changing over to coke less cupolas.
cast metal products are found in 90 percent of manufactured goods and equipment, from critical
components for aircraft and automobiles to home appliances and surgical equipment cast metal
products are integral to the global company and our way of life. The U.S. metal casting industry
is the worlds largest supplier of casting, shipping cast products valued at over $18billion
annually and directly employing 225000 people. Metal casting companies are often at the heart
of the economy in the communities where they reside. Of the 2950 metal casting establishments
located throughout the united states, over 80 percent are small business. Now the fourth largest
producer of metal castings worldwide, India has increased its casting production by more than
100% since 2002. No other large casting producer matches that growth that time frame. The
expansion stems from India’s large and rapidly growing economy, which has the potential to
raise its income per capita to 35 times current levels over the next 40 years.
Types of foundries:
Foundries classified according to the nature of work them under taken and the framework of
these organizations. The types of foundry are as follows
1. Captive foundry
2. Jobbing foundry
3. Production foundry
4. Semi-production foundry
Captive foundry:
It makes casting for that manufacturing organization and all the casting made in a captive
foundry are consumed or used in the products being manufactured by that organization.

Jobbing foundry:
This type of foundry normally products small number of casting of a given type for different
customer. Such foundry some times also has the function of mass production.
Production foundry:
It is highly mechanized and can production-casting economies in large scale.
Semi-production foundry:
It is a combination of jobbing foundry and production foundry as regarding its nature of work
is concerned.
1.3 Important Foundry Cluster In India
There are more than 5,000 foundry units in India, having an installed capacity of approximately
7.5 million tons per annum. The majority (nearly 95%) of the foundry units in India falls under
the category of small-scale industry. The foundry industry is an important employment
provider and provides direct employment 9to about half a million people.
A peculiarity of the foundry industry in India is its geographical clustering. Some of the major
foundry clusters in the country are shown in the map. Typically, each foundry cluster is known
for catering to some specific end-use markets. For example, the Coimbatore cluster is famous
for pump-sets casting, the Kolhapur and the Belgaum clusters foe automotive castings and the
Rajkot cluster for diesel engine casting.
The five major foundry cluster in India-
a) Belgaum
b) Batala /Jalandhar
c) Coimbatore
d) Kolhapur
e) Rajkot

Growth and development of industry:
Indian foundries are primarily family owned which explains the host of small set up’s,
primarily cater to the railways, industrial machineries and machine tools and the automobiles
segment. Since the demand for automobiles and other industries mentioned above has been
increasing rapidly , the casting industry is securing much demand.
According to Goldman sashes, in 2050, india is expected to have one of the three largest
economies (by GDP) in the world , along china first and the U.S. (second) and be an order of
magnitude large than japan, which ranks fourth. Estimates put the current size of the india
economy at $1 trillion , with GDP growth rates around 7.5 to 8.5% second only to china part
of that growth will be attributed to the rise of manufacturing in india.
Seven iron steel casting groups now have casting capacity approximately or exceeding of
100,000 metric tones per year. Six aluminium casting groups each have a casting capacity of
20,000 metric tones per year. Some industry observes estimate the potential for production
capacity will reach 10 million metric tons by 2012, which will require as much as $2 billion of
investment to achieve.
1.4 Meaning Of Castings:
Casting is a manufacturing process by which a liquid material is usually poured into a mold,
which contains a hollow cavity of the desired shape, and then allowed to solidify. The solidified
part is also known as a casting, which is ejected or broken out of the mold to complete the
process.
A foundry is a factory that produces metal casting. Metals are cast into shapes by melting them
into a liquid, pouring the metal in a mold, and removing the mold material or casting after the
metal has solidified as it cools. The most common metals processed are aluminum and cast
iron. Other metals, such as bronze, brass, steel, magnesium, and zinc, are also used to produce
casting in foundries. In this process, parts of desired shapes and sizes can be formed.
Casting is the process of giving shape to or reproducing an object by pouring its material in
liquid form into a mould. Casting is the process of melting metal and pouring it into a mould .
casting is the process of the melting metal and pouring it into a cavity that has been molded on
a pattern into a desired shape. The metal is allowed on a pattern into a desired shape. The metal

is allowed to cool and solidified metal is called the casting. Usually castings are manufactured
in a commercial set up called foundry. Thus foundry is defined as a commercial set up for
manufacturing casting.
1.5 History Of Castings
The origin of casting goes back to over 5000BC. The age of metals came into existence, the
use metal weapons and instruments and instead of stone. The first was the copper age then
came the iron age after few centuries. Then came the alloy of copper and tin. These were
observed in all the upcoming civilization like Egyptian, Aryan, Babylonian civilization. Even
the gold and silver instruments were casted and used in those days. Metals art in India goes
beck to antiquity. The earliest bronzes have been found at Mohanjadoroand Harappa casting
metals particularly bronze for producing objects and artistic and utilitarian valves are made in
Sindhu civilization . they are used arid refined copper ,low and high tin bronze copper sonic
alloy for casting .
Cast metal parts are used for more than 90% of an automobile engine and for more than 50%
of the total weight of a tractor.
 Air craft jet engine bladder

 Machine tool structure
 Railway crossings
 Pump.
 Filter and valve
From the above application is evident that without castings it is unlikely to bring an existence
the most of the products today.
Man has been making casting metal object for artistic and practical purpose since very early
time civilization the shaping of metals in the liquid state or molten state has been developed
for countries. History has abundant proof which throws light on the on the fact that casting is
one of the oldest techniques of casting dates back to approximately 4000 B.C. the manufactured
and uses of casting can be trace back both in ancient and medieval history.
The first foundry center came into existence the days of SHANG DYNASTY in china , Greek
and roman history reveals the use of decorated ornaments and metal bell. In about 1540 A.D,

BIRINGGGUCCIO wrote a book on mental foundry. Earlier to that foundries were an art craft
with all its secrets confined to certain families.
The earliest axe heads of copper were casting open mould about 5000 years ago. Earliest
casting was made out of gold silver bronze etc. decorated bronze casting could be seen in
European church and domestic life by the end of medieval period.
1.6 Global Scenario:
The casting industry supplies castings not only for the automotive industry but also for a
number of other industries including forming and public work machines, machining tools and
public services. It is indeed the foundations of many industries on the automotive industries ,
however, is the primary customer for the casting industry the motorization of chain and other
countries will result in an increase in the global production of castings. On the other hand, the
production volume of casting in the US, Europe and Japan may increase to some extent but a
large increase to some extent but a large increase is not expected in these regions. There is no
doubt however that the global casting industry will continue to rely on the automotive industry
the biggest consumer of casting for it success.
1.7 Current Scenario Of The Industry:
The foundry industry has grove in volume over several decades office poised to grown further
in future. one of the peculiar of this industry is that total production is contributed by a number
of medium and large scale from the original sector and thousand small scale units from the un-
organised sector. An individual foundry existing now can produce right from 20 tons per month
to 1000 tons per month with a set of about Rs20 lakhs to Rs100 crores .one could just imagine
the vast difference in the size between the units of the same industry in terms investments and
outputs. The draw a wide line between the units in all respects through both belongs to the
same industry. The product range of these industries covers ordinary low grade casting to
highly integrated higher grade castings with vast different in terms of technology methods
pricing etc.

1.8 Future Outlook
The casting industry has grown largely in response to the demands of the automotive
manufacturers production overseas and the demands for greater environmental protection
caused serious challenges to the casting industry. There is a wide demand and industry is
concentrating on meeting various needs. In 2020 the production is estimated to 1250 tons per
month. The revenue expected to increase at a rate of 12%.
1.5 Opportunities
 Today’s Foundries are necessarily needed to develop more efficient processes and
design process in order to survive in near future
 Operating efficiency depends upon the costly rework of operation if incase any
defects occurs, hence there is a need to prevention of rework.
 Technology up-gradation such 3D scanning and measurement instruments with

changes product design and its manufacturing, it helps in reducing the cost of
the product.
 There is more depend for the innovative products than common products
having more competitors.
1.6 Role In Manufacturing Sector
Manufacturing sector contribute around 25% to GDP and create 100 million
additional jobs in next 10 years. Every sector like Engineering and other sectors
need metal castings for various purposes.

CHAPTER 2
ORGANISATION PROFILE
2.1 Background and Inception Of The Company:
Eshwar steel tech private limited was formed during the year 2007 by a team of technically and
commercially qualified entrepreneurs who vast experience in the foundry field to cater to the
needs of quality casting requirement of valve and pump manufactures in outside India. It started
its production with an installed capacity of 1800 metric tons per annum.
The working directors namely Sri S.R. Maheshwarappa, Sri J. Lokesh and Sri T.N.
Paramashekarppa have got outstanding experience in this line of activities other director are
financially supporting for the feasible project. For this purpose they have already obtained
registration from district industries centre. Shimoga wide PRC NO 08/18IEP 01070/PRQ/IN
dated 16/06/2006. They have also got possession certificate relating to land from M/S KIADB
and also paid entire amount to M/S KIADB forgetting absolute sale deed well experienced
working directors and one side & the financial supporting directors on the other side to
understand a feasible project at the right time.
The company has recruited trained and qualified staff or workers along with fresh candidates
to take care of the day to day activities in different fields the experienced and dedicated
promoters along with the young team are the strength of the company. The company has got
ISO 9001 certificate by M/s TUV India and planning for EIL approval. The company has got
approval to manufacture the casting in accordance IBR from government of Karnataka.
2.2 Nature Of Business Carried:
Eshwar steel tech Pvt Ltd is engaged in the range of steel castings varies from simple alloy
steel, nickel based alloys and stainless steel etc., to meet the needs of wide range of customers
in the field of foundry requirements. The installed capacity of units is 1800 metric tones per
annum with a wide range of 10 to 300kgs single piece. The melting process is done through
induction furnace of 500kgs capacity and can take up casting weighting up to 300kgs.
The division produces steel and nickel alloy castings to the needs of food diary Brewery
,Textile ,chemical and petrol chemical industries and mainly for manufactures of process of
pumps, values and engineering castings.

2.3 Vision, Mission And Quality Policy:
Vision:
 To be among the most respected suppliers of cast steel components for global
customers.
 To be the best performing supplier to customers .
 To be a world class company manufacturing rough steel casting of optimal quality to
achieve total customer satisfaction.
 To be known for the commitment to provide value to customer employees and the
society.
 To be company where people find privilege to work with.
 To have the best practice in the manufacturing processes
Mission:
 In order to meet the customer satisfying this organization is working hard towards the
achieving of goals.
 They believe that time is more than money.
 To stand out of the crowd in casting nosiness.
 To build strong customer relationship.
 To provide products of exceptional values.
 To be outstanding in business through continual improvement .
 To perform beyond customer expectations.
Quality policy:
Eshwar steel committed to manufacture and supply the casting of consistent quality adhering
to the requirement ensuring customer satisfaction. This shell is achieved by continually
improving the effectiveness of quality management system process.

 Conduct themselves and their business activities honesty and ethically.
 Provide safe and clean environment.
 Give importance to employee safety and enrichment.
Quality objectives:
The quality objective are consistent with the quality including the commitment to
improvement.objectives of ISO 90001-2008
 Reduction in rejection
 Customer satisfaction
 On time delivery
 Maintaining high level of quality of its products
 Reduction in customer compliant
 Capacity utilization of resources
2.4 Product Profile :
Eshwar steel tech Pvt ltd manufactures different types of valves depending upon the customer
requirement. These valves are usually used in oil industries chemical industries and it is mainly
used for pumps.
Major casting types:
 Major steel casting

 Carbon steel casting
 Low alloy steel casting
Grades Of Casting:
 Stainless steel casting CF8M,CF8,CF3M,CF3,CA15,CN7M,CF8C,etc…,

 Carbon steel casting : ISI030, CS700, WCB, Mn3A, C45, WCA , IS2707, IS2062
,etc…,
 Low alloy steel casting: LCB, LCC, WC9, WC6, C5, C12, CS840, A487, etc..,
Area Of Operation:

The area of operation of this company includes National i.e. Delhi, Kolkata, Mumbai, Goa,
Chennai, Coimbatore, Saturn, Kolhapur etc., Regional i.e. Hubli, Bangalore, Dharwad,
Belgaum. The company sells the castings to the multinational companies and it is indirectly
exporting c to global companies.
National: Delhi, Kolkata, Mumbai, Goa, Chennai, Coimbatore ,Kolhapur,etc
Regional: Hubli ,Banglore, Dharwad , Belguam.
The company sells the casting to the multinational companies and it is indirectly exporting to
global companies.
2.4 Owernship Pattern:
Board Of Directors
 K.N.ShekarappaChairman
 T.N. Paramashekarappa Executive Director
 S.R. Maheshwarappa Technical Director
 J. Lokesh Manufacturing Director
 G.S. Roopa Jagadeesh Director
 V.C. Parvathmallappa Director
 Pushpa Ramesh Director
 Sagar S.R Director
 H.M. Shivakumar Director
By combining the investment of 9 directors, Eshwarr is running towards the success and
achieving the goal. The director T.N. Paramashekrappa is an active partner. The director
has full authority and responsibility in directing and controlling of all the activity the
company. Others are only invested their money and they are sleeping partners.
Competitiors Information:
The potential competitors of the company within the regional boundary are as fallows.

 Pragathi Steel Casting Pvt. Ltd., Shimoga
 Aditya Steel Casting Pvt. Ltd., Shimoga
 Shivasi Cast Pvt. Ltd., Shimoga
 Malnad Alloy Casting Pvt. Ltd., Shimoga
 Precishan Casting Pvt. Ltd., Shimoga
 Bumika Casting Pvt. Ltd., Shimoga
 Ambaraarns Casting Pvt. Ltd., Shimoga
Infrastructural facilities:
Eshwar steel tech pvt ltd is situated in machenahalli industrial area, which is just 7 km from
Bhadravathi awell known steel city.the company is located in an area about 2 acres in which
the built in area is about one acres. Remaining includes a garden and a parking lot.
The company has a well laid out internal tar road. Water is an important element for foundry.
Eshwar steel tech pvt ltd gets its water supply from KIADB and as well as a bore well. Gas
sand and shell sand are employed produce the moulds. All sand mining activities are carried
out by muller and miner. It ensures excellent surface finish. A suitable sand additive
appropriate mining is used to blasting process.
ESPL maintain as rest rooms and doctor’s visit for check up etc will be required. ESPL provide
homely atmosphere. ESPL have been provided transportation facility. Employees will be
provided with safety apparatus.
2.6 Achievements/ Awards :
 Eshwar steel tech Pvt ltd, is a ISO 9001-2008 (international standard of

organisation) certified company which is certified from TUVNORD.
 IN 2010, best performance industry in shimoga, awarded by chamber of
commerce and industry shimoga.

Future Growth and Prospects:
 The company is planning to increase its capacity to two tones furnace.
 The management of the company is formulating new strategies to gain new
customer.
 It is estimated that the profitability of the company will increase to 20% in 2015.
 Company is planning to capture new markets.
SKILL MATRIX:
1. Production department

Attention to detail 
Critical thinking 
Communication 
Dependability 
2.Financial department

Financial 
reporting
Analytical ability 
Budget 
preparation
communication 

3.HR department

Employee relation 
Performance 
management
Team work 
Worker’s 
compensation

CHAPTER 3
MCKENSY’S 7S FRAME WORK & PORTER’S FIVE FORCES MODEL
Definition:
McKensy’s 7s model was developed in 1980 by Mc Kinsey consultants tom peters, Robert
Waterman and Julien Philips with a help from Richard and Anthony G. athos. Since the
introduction the model has been widely used by academics and has been widely used by
academics and practitioners and remains one of the most popular strategic planning tools. It
sought to present an emphasis on human resources (soft S),Rather than traditional mass
production tangibles of capital infrastructure and equipment, as a key to higher organisation
performance. the goal of the model are 7 elements namely:

1 Strategy: It is the direction and scope of the company over a long term.
2 Structure: The way the organisation’s units relate to each other in

accomplishing the successful implementation of strategies.
3 System: It includes both formal and informal systems, includes procedures

rules regulations and routines etc.
4 Staff: Selection placement training and development of appropriately

qualified personnel with in the organisation both in terms of
numbers and type.
5 Skills: It includes capabilities the most people use while describing a

company. The competencies those are existing within the company.
6 Style: Cultural style of the organisation and how key manager behave in
achieving the organisational goals.
7 Shared values These values describe what the organisation stands for what it
behaves:
in which strongly related to the culture if the organisation. Ultimately
they guide employee towards valued behavior.
The Model With Refrence To Eshwar Stell Casting Industry:
1) Strategy:
These are the plan for the allocation of firms scare resources over time to reach identified
goals, environment, competition, customers etc. Its is the direction and scope of the company
over the long time. Strategy is a choice of direction and action, the company adopts to achieve
its objectives in a competitive situation on overall of functional strategy that the company may
wish to share.
The Eshwar steel casting having following strategy:

 Ensuring the quality of raw materials is good.
 Well in advance starting production for regular customers.
 Improvement in the existing products.
 Their future plans include expansion of business.
 Introduction of cost effective substitutes without compromising on quality.
The company intends to achieve our objectives by :
 Effective utilization of man power, machinery ,material, and money so on.
The company with competitive pressure by deals
 Maintaining good quality in products

 Providing better price for products
 On time delivery.
 No rejection of quality offered by customers.
 Price differentiation.
2) Systems:
The main systems that run the company are:
 Accounting systems: Financial statement is prepared under the historical cost

convention on an accrual basis
and comply with the accounting standard refer to sec 211(3c)of the companies act 1956.
 Inventory control system: ABC analysis for stock control FIFO method for inventory
control technique with avoid over/under stocking. Computerized accounting system
for stores.
 Remuneration system:
Time rate system is followed to employees. Top management fixes the remuneration to
executives.
 Performance appraisal system:

Confidential report is prepared by heads of various department for systematic
judgements of the subordinate by authority to assess the standard if work and overall
performance.
3) Structure:
It ensures maximum use of principle of specialization. Since the workers have performing a
limited number of functions, there efficiency would be vary high. The Eshwar steel casting
union has marketing, HR , finance quality and production. Administration department of The
Eshwar steel casting takes care and controls other departments of the union.
The main functions are:
 To develop official work procedure and process in order to increase the profit margin.
 To provide a better opportunities for helping the employee to maintain their work.
 To schedule work property so that all jobs are completed on time.
 To maintain responsible quality and quantity schedules.
 To provide satisfactory healthy environment for employees.
Organization chart:

4) Style: The company management style is as follows:
 Decision making is authoritative to top management.

 Authority is given to unit in charge to take decision in day to day minor matters and
other urgent matters.
 The style management is flexible as well as authoritative.
 Decision making is co-operate and done with wide consultations of top management of
department managers consultation which gives best possible gains.
The style of management is
 Flexible.
 Authoritative.
5) Skills
The capabilities and competencies that exist within the company. What it does best.
Hence when organization makes a strategic shift it becomes necessary to consciously build
new skills. Employee’s skills in an organization will be unique, this may be due to their
experience in the place of work, and the similarity may also due to influence of the similar
culture. However every person according to his traits possesses his own talent and special
characters. This cannot be generalized skill among them.
The employees of Eshwar Steel Casting Industry have different skill, which are relevant
for their work. As it is common in every organization, heir will be controversies between
departments which can be solved discussions and by conducting some interactive programs.
The company imparted the following to improve the skills of the employees
 Different training programs to improve technical skills among employees.

 After selection, candidate is subjected to undergo on-the job training for a certain
period.
 sometimes, company invites external training agencies to held training program.
 Guest lecturers are arranged once in 3 months.

6) Staff
Eshwar Steel Casting Industry follows ethical employment standards wherever it operates with
a goal in mind company guarantees.
 To fulfill its entire legal obligation in terms of employment payments and benefits
practices.
 Adequate and timely training for everyone for the job for which they are Employed.
Career advancement related to performance and experience.
 out frequent appraisals.
Benefits Provided to Employees
 Monetary benefits are basic wage allowances, employee’s contribution to PF.

 Employee state insurance, bonus, food canteen education to children, medical
facility, recreation etc
. 7) Shared Values
Values refer to the institutional standards of behaviour that strengthen commitment to the and
guide strategy formulation and purposive action. The core values are shaped around the belief
that enterprises exist to serve society. Eshwar Steel casting industries, adopted values which is
base for the company survival, some of them are:
a) Quality performance b) Customer Satisfaction c) Integrity.
d) Accountability e) Productivity f) Cost and time-consciousness.
g) Trust and team spirit h) Respect for individual I ) Integrity health and ethics.
These are help in maintaining good relationship within the organ

PORTER’S FIVE FORCES MODEL
Competition in the Industry :
The first of the five forces refers to the number of competitors and their ability to undercut a
company. The larger the number of competitors, along with the number of equivalent products
and services they offer, the lesser the power of a company. Suppliers and buyers seek out a
company's competition if they are able to offer a better deal or lower prices. Conversely, when
competitive rivalry is low, a company has greater power to charge higher prices and set the
terms of deals to achieve higher sales and profits.
Potential of New Entrants Into an Industry :

A company's power is also affected by the force of new entrants into its market. The
less time and money it costs for a competitor to enter a company's market and be an effective
competitor, the more an established company's position could be significantly weakened. An
industry with strong barriers to entry is ideal for existing companies within that industry since
the company would be able to charge higher prices and negotiate better terms.

Power of Suppliers:
The next factor in the five forces model addresses how easily suppliers can drive up the
cost of inputs. It is affected by the number of suppliers of key inputs of a good or service, how
unique these inputs are, and how much it would cost a company to switch to another supplier.
The fewer suppliers to an industry, the more a company would depend on a supplier. As a
result, the supplier has more power and can drive up input costs and push for other advantages
in trade. On the other hand, when there are many suppliers or low switching costs between rival
suppliers, a company can keep its input costs lower and enhance its profits.
Power of Customers :
The ability that customers have to drive prices lower or their level of power is one of
the five forces. It is affected by how many buyers or customers a company has, how significant
each customer is, and how much it would cost a company to find new customers or markets
for its output. A smaller and more powerful client base means that each customer has more
power to negotiate for lower prices and better deals. A company that has many, smaller,
independent customers will have an easier time charging higher prices to increase
profitability.The Five Forces model can help businesses boost profits, but they must
continuously monitor any changes in the five forces and adjust their business strategy.
Threat of Substitutes :
Substitute goods or services that can be used in place of a company's products or
services pose a threat. Companies that produce goods or services for which there are no close
substitutes will have more power to increase prices and lock in favorable terms. When close
substitutes are available, customers will have the option to forgo buying a company's product,
and a company's power can be weakened.
Understanding Porter's Five Forces and how they apply to an industry, can enable a company
to adjust its business strategy to better use its resources to generate higher earnings for its
investors.

Eshwar steel casting Porter’s Five Forces Analysis
This section analyses Sonic Foundry Inc using each of the five forces of Porter’s model.
Threat of New Entrants
 The economies of scale is fairly difficult to achieve in the industry in which Sonic
Foundry Inc operates. This makes it easier for those producing large capacitates to have
a cost advantage.
 The product differentiation is strong within the industry, where firms in the industry
sell differentiated products rather a standardized product. Customers also look for
differentiated products.
 The capital requirements within the industry are high, therefore, making it difficult for
new entrants to set up businesses as high expenditures need to be incurred. Capital
expenditure is also high because of high Research and Development costs.
 The access to distribution networks is easy for new entrants, which can easily set up
their distribution channels and come into the business.
 The government policies within the industry require strict licensing and legal
requirements to be fulfilled before a company can start selling.
Bargaining Power of Suppliers
 The number of suppliers in the industry in which Sonic Foundry Inc operates is a lot
compared to the buyers. This means that the suppliers have less control over prices and
this makes the bargaining power of suppliers a weak force.
 The product that these suppliers provide are fairly standardized, less differentiated and
have low switching costs. This makes it easier for buyers like Sonic Foundry Inc to
switch suppliers. This makes the bargaining power of suppliers a weaker force.
 The suppliers do not contend with other products within this industry. This means that
there are no other substitutes for the product other than the ones that the suppliers
provide. This makes the bargaining power of suppliers a stronger force within the
industry.
 The suppliers do not provide a credible threat for forward integration into the industry
in which Eshwar steel casting operates. This makes the bargaining power of suppliers
a weaker force within the industry.

 The industry in which Eshwar steel casting operates is an important customer for its
suppliers. This means that the industry’s profits are closely tied to that of the suppliers.
These suppliers, therefore, have to provide reasonable pricing. This makes the
bargaining power of suppliers a weaker force within the industry.
Bargaining Power of Buyers
 The number of suppliers in the industry in which Eshwar steel casting operates is a lot
more than the number of firms producing the products. This means that the buyers have
a few firms to choose from, and therefore, do not have much control over prices. This
makes the bargaining power of buyers a weaker force within the industry.
 The product differentiation within the industry is high, which means that the buyers are
not able to find alternative firms producing a particular product. This difficulty in
switching makes the bargaining power of buyers a weaker force within the industry.
 The income of the buyers within the industry is low. This means that there is pressure
to purchase at low prices, making the buyers more price sensitive. This makes the
buying power of buyers a weaker force within the industry.
 The quality of the products is important to the buyers, and these buyers make frequent
purchases. This means that the buyers in the industry are less price sensitive. This
makes the bargaining power of buyers a weaker force within the industry.
 There is no significant threat to the buyers to integrate backwards. This makes the
bargaining threat of buyers a weaker force within the industry.
Threat of Substitute Products or Services
 There are very few substitutes available for the products that are produced in the
industry in which Eshwar steel casting operates. The very few substitutes that are
available are also produced by low profit earning industries. This means that there is no
ceiling on the maximum profit that firms can earn in the industry in which Eshwar steel
casting operates. All of these factors make the threat of substitute products a weaker
force within the industry.
 The very few substitutes available are of high quality but are way more expensive.
Comparatively, firms producing within the industry in which Eshwar steel casting
operates sell at a lower price than substitutes, with adequate quality. This means that

buyers are less likely to switch to substitute products. This means that the threat of
substitute products is weak within the industry.
Rivalry Among Existing Firms
 The number of competitors in the industry in which Eshwar steel casting operates are
very few. Most of these are also large in size. This means that firms in the industry will
not make moves without being unnoticed. This makes the rivalry among existing firms
a weaker force within the industry.
 The very few competitors have a large market share. This means that these will engage
in competitive actions to gain position and become market leaders. This makes the
rivalry among existing firms a stronger force within the industry.
 The industry in which Eshwar steel casting is growing every year and is expected to
continue to do this for a few years ahead. A positive Industry growth means that
competitors are less likely to engage in completive actions because they do not need to
capture market share from each other. This makes the rivalry among existing firms a
weaker force within the industry.
 The fixed costs are high within the industry in which Eshwar steel casting operates.
This makes the companies within the industry to push to full capacity. This also means
these companies to reduce their prices when demand slackens. This makes the rivalry
among existing firms a stronger force within the industry.
 The products produced within the industry in which Eshwar steel casting operates are
highly differentiated. As a result, it is difficult for competing firms to win the customers
of each other because of each of their products in unique. This makes the rivalry among
existing firms a weaker force within the industry.
 The production of products within the industry requires an increase in capacity by large
increments. This makes the industry prone to disruptions in the supply-demand balance,
often leading to overproduction. Overproduction means that companies have to cut
down prices to ensure that its products sell. This makes the rivalry among existing firms
a stronger force within the industry.
 The exit barriers within the industry are particularly high due to high investment
required in capital and assets to operate. The exit barriers are also high due to
government regulations and restrictions. This makes firms within the industry reluctant

to leave the business, and these continue to produce even at low profits. This makes the
rivalry among existing firms a stronger force within the industry.
 The strategies of the firms within the industry are diverse, which means they are unique
to each other in terms of strategy. This results in them running head-on into each other
regarding strategy. This makes the rivalry among existing firms a strong force within
the industry.

CHAPTER 4
SWOT ANALYSIS
STRENGTH:
 Easy availability of raw materials

 It is ISO 9001-2008 certified company
 Skilled and trained employees
 The company is financially strong to EPS of a company is growing at a very high rate
 Good coordination between management and employees
 Adequate power supply
WEAKNESS:
 Concentration of only domestic customers

 Transportation facility is not available to the employees
 Absence research and development department
 Employees are not involved in planning and welfare facilities
 As it is manually operated its take more time in getting finished product
OPPORTUNITIES:
 Every industries requires casting products of their own requirements. Hence the
customer gives high purchase order to this industry
 With a good brand image and ISO certification that company can enter different foreign
markets directly.
 Utilising skilled man power to maximum extent which acts as an opportunity for
producing quality goods economically.
 Modernization of company activities increase in demand for casting products
THREATS:
 Out dated plans and equipments increase labour input high energy consumption etc.
 Even in India population loss are becoming rigid plant needs to conform to the
regulation

 Inconsistent quality of raw materials due to export casting, use of imported raw
materials runs the risk of cost increase due to devaluation
 The competitive nature and the global economical fluctuation is affecting the
organization
 Customer expectations are increasing day to day due to innovation in technology
 Continuous changes occurring in technology upgradation relatively difficult
 More domestic competitors

CHAPTER -5
ANALYSIS OF FINANCIAL STATEMENT
ANALYSIS OF FINANCIAL STATEMENT

Balance sheet of ESHWARR STEELTECH PVT LMD as on 2016 – 2017 to 2017 - 2018
Amount Amount Amount

PARTICULARS 31-03-2016 31.03.2017 31.03.2018
A. EQUITY AND LIABILITIES
1. Share Holders Fund
(a). Share Capital 149990000 149990000 149990000

(b). Reserves and Surplus 96821216 94034967 88196205
2. Non-Current Liabilities
(a). Long Term Borrowings 83573588 69266234 32535952

(b). Deferred Tax Liability 4868900 3420400 6014500
other long-term liabilities 4764007 3388703 3259923
3. Current Liabilities
(a). Short term borrowings 248311973 159814793 159863222

(b). Trade payables 170542166 157943016 111866971
(c). Other current Liabilities 42945633 65184784 66776972
(d). Short term provision 5714810 4359400 5613125
TOTAL 807532293 707402297 624116870
B. ASSETS
1. Non-Current Assets
(a). Fixed Assets

(1) Tangible 233681191 234450414 267937633
(2) Intangible 16619300 8447400 9528000
(3) Capital WIP 64744406 46467205 8335508
Intangible assets under 0 0 0
development
(b).other Non-Curent Assets 26670660 24495402 21583902
©. Long term loans and 13948416 12607779 11911520
advances
2. Current Assets
(a). Inventories 171772859 152003905 91729702

(b). Trade Receivables 241518332 190689660 171228606
(c). cash and bank Balances 580449 184453 227059
(d). Short term loans and advances 15680776 13340340 10616567
(e). Other Current Assets 22315904 24715740 20832185
Total 807532393 707402297 624116870
RATIO ANALYSIS:
Ratio analysis a quantitative analysis of information it is based on financial statement like

balance Sheet, income statement, cash flow.
It is worn for the easily identify the company financial performance , Ratio are classified into
short term, solvency ratios, debt management ratio and Asset management ratios, profitability
ration and market value ratio.

Ratio Analysis & Inference:
1. Current Ratio
Current Assets
Current Liability
Particulars 2016 2017 2018
Current Assets 451868320 380934098 294634119
Current Liabilities 467514582 324276593 338507165
Current Ratio 0.97 1.17 0.87
Inference:
From the above Table and graph it is observed that in the year 2018 current ratio is 0.87 and
2015 is 1.17 but in the year 2016 current ratio decreased to 0.97, compared to standard of ratio
that is 2:1. The firm had not kept up the standard proportion
There is fluctuation of current ratio year by years, since some variation in current assets and
current liabilities.
In 2016 ratio is 0.97:1 but the firm not kept up the standard proportion but, its moving towards
the idle ratio for manufacturing industries is 1.5:1 the ratio is the below the standard so firm
needs to provide for sufficient working capital.

2. Quick Ratio:
Quick Assets
Current Liabilities
Particulars 2016 2017 2018
Quick Asset 280095461 228930193

202904419
Current
Liabilities 467514582 324276593 338507165
Quick Ratio 0.68 0.71 0.67
Inference:
The above table shows the calculation of quick ratio. It shows that company’s liquidity
position is favourable in all 3 years as compared to the standard ratio of 1:1. The quick ratio of
company is above.

CHAPTER 6
LEARNING EXPERIENCE
 It was the great experience to undertake my project at Eshwar steel tech private ltd.
Where I learnt many things about the functioning of the organisation in accordance with
the present market trends. The interaction with the employees gave me an insight and
practical experience of the industrial scenario in the competitive environment outside
the realms of the organisation.
 The objective of the in-plant training was to give exposure to industry and corporate
working. I had the opportunity to study one of the esteemed organization in shivamogga
district.
 This gave me a chance to peep into the practicalities of the ‘corporate working
experience’. During this period, it was totally a new experience for me to enter into the
organization.
 The departmental study helped me to identify and understands different department of
the organisation and their working nature. The style management is very supportive and
service minded board of directors.
 The analysis of SWOT provided insights into the actual position of the organisation in
the current dynamic economic changes. I hope the organisation is in a very good
position to overcome its weakness and safeguard its survival from the possible threats
in the market.
 The above training provided an opportunity to learn many things which were really fruit
full and great experience for getting training in the organization like Eshwar steel tech

private ltd and I came to know the difference of classroom learning with practical
learning in the organization.

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COMPANY 1

SHIVAMOGGA(D) CO-OPERATIVE MILK PRODUCERS SOCIETIES

1.1 Introduction to Indian Dairy industry:

the entrepreneurs globally. It is the world’s largest consumer of dairy products,

The dairy industry in India is instrumental in providing cheap nutritional food to

Operation Flood was a rural development program started by India's National

Program implementation as below:

Gujarat-based cooperation "Anand Milk Union Limited", often called SAMUL,

1.3 Overview of the Indian Dairy sector:

The Dairy Cooperative Network (As on March 2017)

Source: National Dairy Development Board (N.D.D.B) as on March, 2017.

1.4 Indian (Traditional) milk products:

Makkhan - unsalted butter.

Kheer - a sweet mix of boiled milk, sugar and rice.

Rabdi - sweetened cream.

Dahi - a type of curd.

Lassi - curd mixed with water and sugar/ salt.

Channa/Paneer - milk mixed with lactic acid to coagulate.

Khova - evaporated milk, used as a base to produce sweet dishes.

Fluid Milk 46.0%

Khoa (Partially Dehydrated Condensed Milk) 6.5%

Milk Powders, including IMF 3.5%

Paneer&Channa (Cottage Cheese) 2.0%

Others, including Cream, Ice Cream 1.0%

1.6 Major players of Dairy industry:

Nestle India Limited Milkmaid, Cerelac, Sweetened condensed milk, malted

Milkfood Limited Milkfood Ghee,ice cream, and other milk

SmithKline Beecham Limited Horlicks, Maltova, Malted Milkfood, ghee, butter,

Indodan Industry Limited Indana Condensed milk, skimmed milk

Gujarat Co-operative milk Amul Butter, Cheese and other products

H.J. Heinz Limited Farex, Complan, Infant milkfood, Malted milkfood

Britannia Milkman Flavoured milk, Cheese, Milk

Cadbury Bourvita Malted food

1.7 Future prospects of the industry:

Shimoga District Co-operative Milk Producers’ Societies’ Union Limited

2.2 Background and Inception of the company:

The union undertook the work of organization of milk co-operatives in ‘AMUL

2.3 Present status of the company:

Dairy Co-operative Societies 1294

2.4 Nature of business carried:

The production capacity of the Union in Shivamogga unit is 1,00TLPD &

It distributes milk with totally 46routes; 23 routes in Shivamogga,14 routes in

Milk procurement and Sales at present:

There are 15veterinary routes operating and attending emerging cases.

 Artificial animal breeding:

2.5 Vision, Mission and Quality Policy:

Shimoga district Co-operative Milk producers’ Societies’ Union Limited

SHIMUL’s Quality policy:

SHIMUL is committed to producer’s welfare through customer delight adopting

2.6 Products’ profile:

Brand name of products:

Motto of KMF products: “Quality Excellence from Cow to Consumer”

Pasturised toned milk:

Karnataka’s most favourite milk. Nandini toned fresh milk

Homogenised cow’s milk:

Spicy Butter milk:

Fresh butter milk blended with quality spices to give that

Ghee in Standy Pouches Ghee in Pet Jar Ghee in Sachet

Mouth-watering peda made from pure milk. One bite is enough

Add khova to preparations like carrot halwa, gulabjamoonetc and

Product name MRP(Rs)

Toned milk-1000ml 35.00

Toned milk-500ml 18.00

Toned milk-200ml 9.00