Organizational Study of Mysore Milk Union Ltd

UNIVERSITY OF MYSORE
I NTERNSHI P PROJ ECT REPORT

Organizational study of Mysore Milk Union Ltd
SUBMI TTED BY
KARTHIK K J
Reg. No: 13MB0237
UNDER THE GUIDENCE OF:
Mr. AJAY M. JADHAV
Assistant Professor - DoS in Business Administration,
Pooja Bhagavat Memorial Mahajana Post Graduate Centre
Mysore 570016
Project Report submitted to the University of Mysore in partial
Fulfilment of the requirements of III Semester MBA Degree
Examinations Dec/Jan 2014 - 15

DEPARTMENT OF STUDIES IN BUSINESS ADMINISTRATION
POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE CENTRE
K. R. S. ROAD, METAGALLI, MYSORE

CERTIFICATE


2014- 2015

This is to certify that Mr. KARTHIK K J., Reg. No. 13MB0237, our student of 3
rd
semester MBA
has carried out the Internship Project at Mysore Milk Union Ltd as part of his curriculum activity
as per the norms for obtaining a Post-Graduation Degree in Master of Business Administration from
UNIVERSITY OF MYSORE during the year 2014- 2015

Mr. AJAY M. JADHAV
Assistant Professor - DoS in Business Administration
Pooja Bhagavat Memorial Mahajana Post Graduate Centre
Mysore

CERTIFICATE
POOJA BHAGAVAT MEMORIAL MAHAJANA POST GRADUATE
CENTRE, K R S ROAD, METAGALLI, MYSORE.

2014- 2015
This is to certify that Mr. KARTHIK K J. student of III semester MBA, bearing the register number
13MB0237 has successfully completed the Internship Project Work titled Organization study of
Mysore Milk Union Ltd in partial fulfilment of the requirements for the award of Post-Graduation
Degree in Master of Business Administration of the University of Mysore, during the academic year
2014- 2015

Dr. C K Renukarya Prof. S R S Khadri
Director Director, Dept. of Studies
PBMM P. G. Centre in Business Administration
Mysore PBMMPGC, Mysore

DECLARATION

I, hereby declare that the report title Organization study of Mysore Milk
Union Ltd is a record of independent research carried out by me under the
guidance of Mr. AJAY M. JADHAV Assistant Professor - DoS in Business
Administration , Pooja Bhagavat Memorial Mahajana Post Graduate Centre,
Mysore, and I further declare that the findings in the Internship Project Report
are independent study done by me.

Place: Mysore
Date: KARTHIK K J

ACKNOWLEDGEMENT

I place my Sincere thanks to Director Dr. C K Renukarya, honorable Director
P.B.M.M.P.G. Centre, Prof. S R S Khadri. Director of Department of Studies in
Business Administration and Mr. AJAY M. JADHAV Assistant Professor -
DoS in Business Administration, Pooja Bhagavat Memorial Mahajana Post
Graduate Centre for having provided necessary facilities to undergo my project
work.
I would like to express my sincere thanks to Mr. NAGARAJE GOWDA,
external project guide, for his co-operation to complete my project work.

Date: KARTHIK K J
Place: Mysore Reg. No.13MB0237

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MYMUL
Organizational study
CONTENT
CHAPTER CONTENTS PAGE NUMBER
1 INTRODUCTION 7-17
2
PROFILE OF THE
ORGANIZATION &
SWOT
18-38
3
DETAILED STUDY OF
THE DEPARTMENT
39-73
4
STUDY OF SPECIFIC
MANAGEMENT
74-75
5
RECOMMENDATIONS
AND
CONCLUSION
76-78
6 BIBILOGRAPHY 79-79
7 ANNEXURE 80-80

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CHAPTER-1
INTRODUCTION

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1.1 GENERAL INTRODUCTION
Mysore Milk Union limited (MYMUL) is a co-operative Milk Union fully
owned and managed by milk producers of Mysore and Chamrajanagar districts of
Karnataka State. Since its inception 1987, the union is constantly striving to further
the dairy development and marketing activities in its milk shed area.
I mportance of Milk:
Milk is natures ideal food for infants and growing children. The importance
of milk in our diet has been recognized since Vedic times, and all modern research
has only supported and reinforced this view. In fact, milk is now considered not only
desirable but essential from the time the child is born. The baby is recommended to be
breast-fed until it is weaned and thereafter given cow/buffalo/goat/sheep or similar
domesticated mammals milk till he or she reaches 12 years of age.
Milk is an almost ideal food. It has high nutritive value. It supplies body
building proteins, bone-forming minerals and health-giving vitamins and furnishes
energy-giving lactose and milk fat. Besides supplying certain essential fatty acids, it
contains the above nutrients in an easily digestible and assailable form. All these
properties make milk an important food for pregnant mothers, growing children,
adolescents, adults, invalids, convalescents and patients alike.
The National Institute of Nutrition has recommended a minimum of 300 g
daily intake of milk for children between 1-3 years of age and 250 g for those between
10-12 years, if they are vegetarian, and 250 g and 200 g for the same age groups of
non-vegetarian children. In our country, most such adults consume milk only as
whiteners for tea and coffee, some dahi or buttermilk.

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1.2 OBJECTIVES OF THE STUDY :

To be familiar with the organisational environment.
To know the organisational structure of the company.
To get a practical exposure to various functional departments of MYMUL.
To know the products prepared by the MYMUL

1.3 INDUSTRIAL BACKGROUND :
Dairying prior to operation flood:
The earliest attempts of dairy development can be traced back to British rule,
when the Defence Department established military dairy farms to ensure the supply of
milk and butter to the colonial army. The first of these farms was set up in Allahabad
in 1913; subsequent facilities were established at Bangalore, Ootacamund and Karnal.
These farms were well maintained. As animals were reared under farm conditions,
some herd improvement was made using artificial insemination. This approach did
not have any impact on the supply of milk to urban consumers, which was of major
concern to civilian authorities but less important to the military. With the growth of
the population in urban areas, consumers had to depend on milk vendors who kept
cattle in these areas and sold milk, often door-to-door. As a result several cattle sheds
came into existence in different cities.
To some extent, the Second World War gave impetus to private dairies with
modestly modernized processing facilities. In the cities like Bombay, Calcutta,
Madras, and Delhi and in some large townships, processed milk, table butter and ice-
cream were available. Polsons, Kelventers and the Express Dairy were some of the
pioneer urban processing dairies. These dairies were not concerned with improving
the breed of milk animals but were content with contracting milk supplies through
middlemen or their own staff. Milk producers as well as consumers were exploited to
a large extent. Despite modernized processing facilities, dairying remained
unorganized.

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With the initiation of Indias first five-year plan in 1951, modernisation of the
dairy industry became a priority of the government. The goal was to provide hygienic
milk to the countrys growing urban population. Initial government action in this
regard consisted of organizing milk schemes in large cities. To stimulate milk
production, the government implemented the Integrated Cattle Development Project
(ICDP) and the Key Village Scheme (KVS), among other similar programmes. In the
absence of a stable and remunerative market for milk producers, however, milk
production remained more or less stagnant.
During the 1960s, various state governments tried out different strategies to
develop dairying, including establishing dairies run by their own departments, setting
up cattle colonies in urban areas and organizing milk schemes. Almost invariably,
dairy processing plants were built in cities rather than in the milk sheds where milk
was produced. This urban orientation to milk production led to the establishment of
cattle colonies in Bombay, Calcutta and madras. These government projects had
extreme difficulties in organizing rural Milk procurement and running milk schemes
economically, yet none concentrated on creating an organized system for procurement
of milk, which was left to contractors and middlemen. Milks perishable nature and
relative scarcity gave the milk vendors leverage, which they used to considerable
advantage. This left government-run dairy plants to use large quantities of relatively
cheap, commercially imported milk powder.

All these factors combined left Indian dairying in a most unsatisfactory low-
level equilibrium. The establishment and prevalence of cattle colonies emerged as a
curse for dairying in the rural hinterland as it resulted in a major genetic drain on the
rural milk animal population, which would never be replaced. City dairy colonies also
contributed to environmental degradation, while the rural producer saw little reason to
increase production.

Operation flood:
The strategy for organized dairy development in India was actually conceived
in the late 1960s, within a few years after the National Dairy Development Board
(NDDB) was founded in 1965. It rested on the Operation Flood programme, which

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was conceived by the NDDB and endorsed by the government. Operation Flood is a
unique approach to dairy development. During the 1970s, dairy commodity surpluses
were building up in Europe. The chairman of NDDB saw those surpluses as both a
threat and an opportunity. The threat was massive exports of low-cost dairy products
to India, which had it occurred, would have told the death-knell for Indias staggering
dairy industry. The large quantities that India was already importing had eroded
domestic markets to the point where dairying was not viable. The opportunity, on the
other hand, was built into the Operation Flood strategy. Designed basically as a
marketing project, Operation Flood recognized the potential of the European
surpluses as an investment in the modernization of Indias dairy industry. With the
assistance of the World Food Programme, food aid in the form of milk powder and
butter oil was obtained from the countries of the European Economic Community
(EEC) to finance the programme.
Operation Flood is a programme designed to develop dairying by replicating
the An and Model for dairy development, which has stood the test of time for almost
half a century. The first phase of Operation Flood was launched in 1970 following an
agreement with the World Food Programme, which undertook to provide as aid
126000 tonnes of skim milk powder and 42000 tonnes of butter oil to finance the
programme.
The programme involved organizing dairy co-operatives at the village level;
creating the physical and institutional infrastructure for milk procurement, processing,
marketing and production enhancement services at the union level; and establishing
dairies in Indias major metropolitan centres. The main thrust was to set up dairy co-
operatives in Indias best milk sheds, linking them with the four main cities of
Bombay, Calcutta, Delhi and Madras, in which a commanding share of the milk
market was to be captured. In achieving that goal, the first phase of Operation Flood
laid the foundation for Indias modern dairy industry, an industry that would
ultimately meet the countrys need for milk and milk products.
The second phase of the programme was implemented between 1981 and
1985. Designed to build on the foundation laid in the first phase, it integrated the

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MYMUL
Indian Dairy Association-assisted dairy development projects being implemented in
some Indian states into the overall programme.
The current third phase of Operation Flood aims at ensuring that the co-
operative institutions become self-sustaining. The programme envisages substantial
expansion of the dairy processing and the marketing facilities; an extended milk
procurement infrastructure; increased outreach of production enhancement activities
and professionalization of management in the dairy institutions.

KARNATAKA MILK FEDERATION
karnataka Milk Federation (KMF) was instituted in 1984, by federating the 13
milk unions in the state and thus forming the state level apex organization. As a co-
operative apex body of the state of Karnataka, it represents dairy farmers
organization and also implements dairy development activities to achieve the
following objectives:-
Provides assured and remunerative market for the milk produced by the farmer
members.
Provide quality milk to urban consumers.
To build village level institutions in co-operative sectors to manage the dairy
activities.
To ensure provision of milk production inputs, processing facilities and
dissemination of know-how.
To facilitate rural development by providing opportunities for self
employment at village level, preventing migration to urban areas, introducing
cash economy and opportunity for steady income.

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List of co-operative milk producers under Karnataka Milk Federation

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1.3 a Origin of the Industry :
Though ancient written records report milk as an important food, its
processing and distribution as a separate commercial business did not develop
countries until the concentration of population in the cities reached a high-level in the
middle of the nineteenth century.
In India, dairying has been practiced as a rural cottage industry since the
remote past. Semi commercial dairying started with the establishment of military
dairy farms and co-operative milk unions throughout the country towards the end of
the nineteenth century, however, market milk technology may be considered to have
commenced in 1965, with the functioning of the central dairy of Aarey milk colony
and milk product technology in 1956 with the establishment of Anand Milk Union
Limited (AMUL) Dairy in 1946 first milk union started in India, at Gujarat.
In developed daring countries such as the U.S.A., the year 1850 is seen as the
dividing between farm and factory-scale product. Various factors contribute to this
change in these countries viz., concentration of population incites where jobs were
plentiful, rapid industrialization, improvement in transportation facilities,
development of machines etc., where as the rural areas were identified for milk
production, the urban centers were selected for the location of milk processing plants
and products manufacturing factories. Gradually formers within easy driving distance
begin delivering milk over regular routes in the cities. Prior of the 1850s most milk
was necessarily produced within a short distance of the lace of consumption because
of lack of suitable means of transport and refrigeration

1.3 b Growth and development of the Industry :
Until the 1940, there was very little published information on the method of
preparation and use of these products. The credit for the first publication on the
subject goes to Dr. W.B.Davis, the first director of the industry research, Indian Diary

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MYMUL
research Institutes (now National), Bangalore. Within the span of these four decades
since his book appeared, considerable research has been places in indigenous Dairy
products.
1.3 c Present status of the industry :
The Indian dairy industry is heading towards new century with an accelerated
and positive momentum. With unprecedented growth in milk production by over two
and a half time in the also two decades to about 58.8 million tones in 1992, India has
emerged as the largest milk producer in the world with an annual milk production of
76 million tones. Food processing industry ranks as the fifth largest industry in the
country. Though the milk and milk products have 85% business in unrecognized
sector, it is having 7% growth per year.
The establishment of a co-operative structure as a ready and regular buyer or
milk produced gave a new turn to the rural economy. Today, over 275 dairy plants
and 83 milk products factories in the co-operative, public and private sectors handle
an estimated 12%--15% of the total milk produced. In most of the countries in the
world, the proportion of milk delivered to the dairies is over 90%. The trends are now
changing fast in India too it is expected that the processing of milk on organized scale
will increase sharply in developed countries. This will consequently increase the
opportunities for value addition, while the value of the output of the dairy products in
the countrys food sector has increased from 5%-7% during the same period. Now,
the days of milk scarcity and imports are behind us, the organized sector can seize the
opportunity of tapping the market of value added dairy products like butter, cheese,
lactose, khova, paneer, etc.
It is beyond doubt to mention that the organized dairy industry has done a
splendid job by transforming itself from an import-dependent enterprise to self-
sufficient industry and the embarking on export of various products. And, now it is
poised for another wave of expansion by undertaking large-scale production of milk
in the organized sector.

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1.3d ENVIRONMENT OF THE STUDY :
After the closure of OF-III project. Government of Karnataka and NDDB
signed an MOU during February 2000, for further strengthening the Dairy
Development Activities in Karnataka with an outlay of Rs.250 Crores. Consequent to
the announcement of new lending terms and conditions by NDDB through an
evolution of an action plan - Perspective 2010 to enable the dairy cooperatives to face
the challenges of the increased demand for milk and milk products by focusing efforts
in the four major thrust areas of Strengthening the Cooperatives. Enhancing
Productivity, Managing Quality and building a National Information Network, plans
are under implementation. The 4 Milk Unions viz., Dharwad, Tumkur, Bijapur and
Gulbarga that were having accumulated losses were included for rehabilitation
programme under the Centrally Sponsored Scheme "Assistance to Cooperatives"
which is also under implementation.
.
1.3e FUTURE OF THE INDUSTRY :
FUTURE VISION :
To consolidate the gains of Dairying achieved in the state of Karnataka and with a
view of to efficiently chill, process and market ever developing and increasing milk
procurement with an utmost emphasis on the Quality and in the process conserve the
socio-economic interests of rural milk producers, the Govt. of Karnataka through
KMF has proposed to undertake several projects with financial and technical support
of NDDB for which an MOU was signed between Govt. of Karnataka and NDDB on
10th Nov. 2004

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CHAPTER-2

PROFILE OF THE
ORGANIZATION

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2.1 ORIGIN OF THE ORGANIZATION :

MYSORE DAIRY, a unit of Mysore Chamrajanagar District Co-Operative
milk producers Union Limited (MYMUL) registered under Karnataka co-operative
act has been commissioned in the year 1976. It is fully owned and managed by
Mysore and Chamrajanagar districts of Karnataka state.
The philosophy of this co-operative milk producers organisation is to
eliminate middlemen and organize institutions owned and managed by milk
producers, by employing professionals. Achieve economies of scale of rural milk
producers by ensuring maximum returns and at the same time providing wholesome
milk at responsible price to urban consumers. Ultimately, the complex network of co-
operative organisation 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.

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 Mysore Coop
Milk Producers Societies Union Ltd was established on 23.11.1976, having the
jurisdiction extended to the entire Mysore District and Five Taluks of Mandya
District. 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 main subsidiary occupation.
Later the Union was bifurcated into Mysore and Mandya District Co-
Operative Milk Producers Societies Union Ltd from 01.04.1987. Consequent to the
bifurcation of Mysore District into Mysore and Chamrajanagar Districts, this Union is
renamed as Mysore-Chamrajanagar District Coop Milk Producers Societies
Union Ltd.

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2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION :
To provide remunerative market for the milk produced by the rural farmers
throughout the year irrespective of the quantity supplied by them.
First Aid facility at the Society level.
Emergency visits to treat the animals on a nominal fee to be collected from
the producer.
Cross breeding facility through Artificial Insemination service.
Supply of balanced Cattle Feed to the farmers of the Coop Societies at
subsidized rates.
Technical guidance and supply of root slips/seeds for Fodder cultivation by
the members of the Coop Societies
Effective supervision/extension services through field executives of the
Union.
Intensive Co-Operative education programmes to the women members of the
Dairy Coop Societies through Coop Development Programme.

Mysore Dairy with the capacity of 10 TLPD was started in the year 1965 under the
control of the Department of Animal Husbandry and Veterinary Services of
Karnataka State, which was transferred to Karnataka Dairy Development Corporation
in the year 1974. The capacity was expanded to 60 TLPD in 1980 and transferred to
the Karnataka Milk Federation in 1984. The capacity was expanded to 100 TLPD
under the Operation Flood II and further expanded to 150 TLPD under OF III
Programme. As per the Government policy the Dairy and its Chilling Centres were
handed over to MYMUL on 01.06.1987

2.3 VISION AND MISSION :
Vision:
The vision of MYMUL is to provide quality milk products to the consumers
and emerge as one of the top milk union of the co-operative dairy industry in the
country.

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Mission:
MYMUL 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.
Quality policy:
MYMUL is committed to producers welfare through customers delight by
adopting continuous improvement and ensure pure and hygienic milk and milk
products.
Values:
Honesty
Discipline
Quality
Cost control
Co-operation
Team spirit
Service motive

Objectives of MYMUL:
To provide a guaranteed remunerative milk market round the year for all the
marketable surplus of member producers in their villages.
To procure milk, process into good quality milk/milk products and market it most
economically and efficiently to give maximum overall net-returns to the producers
and general satisfaction to the consumers.
To provide essential technical inputs and services to the producers at their door-
steps in an economic and efficient manner and also in a way most acceptable to
them.
To build village level institutions co-operative sector to manage the dairy
activities.

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MYMUL
In order to fulfil these objectives, the union is constantly engaged in working towards
improvements of business as well as the welfare of the producers. This has resulted in
greater performance on commercial as well as in institutional front

AWARD
MYMUL has got two awards they are

1 ISO 9001-2000
2 National Energy Conservation award from president of India in 2005.

MI LESTONES:
1955: First Dairy in Karnataka at Kudagoo.
1965: Govt. Dairy, Mysore started with 10 TLPD capacities.
1974: Karnataka Dairy Development Corporation born.
1975: Primary Dairy Coop Societies commissioned.
1975: Govt. Dairies transferred to KDDC.
1976: Mysore Coop Milk Producers Societies Union started.
1980: Processing capacity of Mysore Dairy expanded to 60 TLPD.
1983: Corporate brand name NANDINI came into effect.
1984: KDDC transformed to KMF.
1987: Bifurcation of Mysore Union into Mysore & Mandya District Unions.
1988: Newly expanded 60 TLPD capacities CC at Chamrajanagar.
1988: Training centre, Mysore handed over to MYMUL.
1993: Cluster AI centres started in MYMUL and first time in Karnataka.
1993: IBP prepared at MYMUL for the first time in Karnataka.

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MYMUL
1998: Kollegala Chilling Centre commissioned.
1998: 10 TL capacities Liquid Nitrogen Storage Tank erected.
1999: NANDINI SALES DEPOT started at Chamrajanagar.
1999: Planted trees in 10 acres land under forestry.
1999: First place at national level in construction of Smokeless Ovens.
2001: Production of Mysore Pak started.
2002: Adopted Mnemonic Symbol through NDDB.
2003: Released Full Cream Milk in 500 ml and Toned Milk in 250 ml packets.
2004: 3 numbers each BMCs started in Gundlupete and KR Nagar taluks.
2004: MYMUL Raitha Kalyana Trust started.
2005: ISO 9001-2000 Certification obtained through TUV Rhineland.
2005: For the first time received the national award for Energy Conservation
Award from Dr. A.P.J. Abdul Kalam.
2006: Released ghee to market in 50 ml, 100 ml packets.
2006: Ghee sales in pet jars at Kerala started.
2006: An Auditorium at Chamrajanagar CC is inaugurated and named as
Dr.Rajkumar.
2007: Prestigious ISO 9001-2000 Certificate is renewed.
2007: Received the National and State award for Energy Conservation Award.
2007: Released 5 Lit Toned milk packet and 100g packet containing 10 No of 10
peda.

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PRODUCT PROFILE
MYMUL manufactures the following products:

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MYMUL, Milk Union manufactures the following products

a) TM: Toned Milk
b) STD: Standardized Milk
c) FCM: Full Creamed Milk
d) DTM: Double Toned Milk
e) HSTD: Homogeneous Standard Milk
f) Curds
g) Ghee
h) Peda
i) Mysore pak
j) Lassie
k) Masala Majijge
l) Flavoured Milk

NANDINI TONED MILK
Karnatakas most favourite milk. Nandini Toned Milk, pure milk containing
3.1%fat and 8.5% solid not fat. Available in 500 ml and one litre

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NANDINI FULL CREAM MILK

Full Milk; contain 6.1% far and 9% solid not fat. Rich creamier and tasted milk, Ideal
for preparing homemade sweets and savouries. Available in 500ml.

NANDINI HOMOGENISED TONED MILK
Nandini homogenized toned milk is pure milk, which is homogenized and
Pasteurized consistent right through. Available in 500ml packs.

NANDINI CURD
Nandini curd made from pure milk, it is thick and delicious. Giving you all
the goodness of homemade curds. Available in 200gms and 500gms sachet.

NANDINI STANDARDISED MILK
This milk containing 4.6% fat and 8.5% solid not fat. Available in
500mlPack.

NANDINI 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 remain
the goodness of pure ghee. Shelf life of six months of ambient temperatures.
Available in 200ml, 500ml, 100ml, sachets and15kgs tins.
NANDINI PEDA
No matter what you are celebrating Nandini Peda from delicious treat for the
family made from Pure milk, store at room temperature approximately seven days.
Available in 50 grams for Pack containing 10 pieces each.

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NANDINI MYSORE PAK
Fresh and Tasty, Nandini Mysore Pak is made from high quality Bengal gram,
Nandini Ghee and sugarcane. Available in 250grams and 500grams. PP container
shrink packed to preserve freshness. Advised to consume fresh to enjoy its excellent
taste.

SWEET LASSIE
Sterilized flavoured milk. Nutritious and healthy milk and an all season
wholesome drink available in different flavours.

NANDINI FLAVOURED MILK
Sterilized flavoured milk. Nutritious and healthy milk and an all season
wholesome drink available in 5 different flavour pineapple, rose, bad am, pista and
natural orange.

MASALA MAJJIGE
It is also one of the drinks available from dairy. It should be prepared with masala
ingredients.

BADAM BURFI
Bad am burfi is a delicious treat made up of milk and it can be stored at room
temperature.
CASHEW BURFI
Fresh and tasty cashew Burfi is made from cashews, Nandini ghee, and sugar
milk. It is a Delicious way to relish a sweet movement

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2.4 PRESENT STATUS AND FUTURE OF THE ORGANIZATION :

1 General
Area of the Dairy : 45 acres
Handling capacity : 2, 74,000 LPD
Estimated cost of Building : 2.89crores
Number of employees : 374

2 .Milk procurement
Dairy co-operative societies functioning : 895
Dairy societies registered : 936
Procurement routes : 71
Chilling centres : 3
Districts covered : 2
Taluks covered : 11
Villages covered : 2005

3 Milk Distributions
Distribution routes : 35
Districts covered : 2
Selling agents in urban : 374
Selling agents in rural : 235
Milk parlours : 48

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MYMUL
AREA OF OPERATION
MYMUL not only operates in Mysore districts, but, also operates in some parts
of Chamrajanagar District. It operates 502 distribution centres, concerning all the
agents besides, there are 2 milk parlour maintained by the dairy.
The area of operation is as under:

COMPETITORS INFORMATION
The major competitors of the MYMUL are as follows:
>Jersey
>Dodla
>Arogya
>Gomatha
>Thirumala
Mysore District Mysore Tq.
T Narasipura Tq.
Nanjanagudu Tq.
H.D.Kote Tq.
Hunsur Tq.
Piriapatana Tq.
K.R. Nagar Tq.

Chamrajanagar District Chamrajanagar Tq.
Gundlupete Tq.

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MYMUL
>Swastika
>Loose milk vendors
>Heritage

JERSEY
*Plant at Andhra Pradesh
*Sale in Union Jurisdiction 45 TLPD (Thousands litre per day) (100 TLPD in City)
*M.R.P. rate Rs. 16.00 per litres- seller rate Rs. 15.50 to based on quantity.
*Commission ranges from 40-70 per litre (good incentive scheme)
*Quality perception-thick and longer shelf life.
*Flexible distribution-retailers, wholesalers or anyone willing to sell.
*Payments cash and carry or while collecting empty crates on return trip.
*Availability mostly retail outlets and now capturing institutional sales by any
means.
* Vigorous advertisement especially at the point of purchase.

DODLA:
* Plant at Nellore.
*Availability of raw material at cheaper rate.
*Sale in union Jurisdiction 18 TLPD (Thousands litre per day in city)
*M.R.P rates Rs. 13.00 per litre- seller rate 12.50.
*Commission ranges from paisa 40-50
*Quality perception-thick and long shelf life.
*Flexible distribution-retailers or anyone willing to sell
*Returns will be accepted.
*Payment- cash and carry or which collecting empty on return trip.

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MYMUL
*Channel members are playing critical role in boosting the sales.
*Packing is attractive with multicolour pricing on sachets
*Consumers perceives that milk is good for making curds.

AROGYA:
*Plant at Bangalore
*Sale in union jurisdiction 10 TLPD (Thousands litre per day) (25 TLPD in cities)
*MRP Rates Rs. 18.00 per litre.
*Commission ranges from 60 paisa per litre.
*Availability mostly retail outlets like bakeries. Condiments and departmental stores
*Packing is attractive with multicolour printing on sachets.
*Concentrating on value added products and not much on milk.

LOOSE MILK SALE
*Market share is next to Nandini.
*Loose milk from Erode and local cattle rears
*Sale in union jurisdiction 140 TLPD.
*MRP Rate Rs. 7.00 to Rs.12.00 per litre.
*Majority of the milk is heavily adulterated and no uniform quality.
*Sales from 50ml and above.
Heritage
*Plant at Bangalore
*Sale union jurisdiction from 12 TLPD (30 litres TLPD )
*MRP Rates is RS 20 per litre
*More contents in fat than any other milk competitors

32

MYMUL
INFRASTRUCTURAL FACILITIES

MYMUL has better infrastructural facilities which makes their production
process and Business process more easier, it consists of;

33

MYMUL
I MILK PROCUREMENT
*Milk collection from farmers.
*Dairy co-operative society.
*Bulk milk products.

II. TRANSPORTATION
*They have procurement group contract vehicles.
*Milk Tankers.

III. MILK PROCESSING
*Raw milk reception dock
*Cream separators
*Milk pastures
*Cream pastures
*Stored tanks
*Electronic milk tester and milk scan

IV PACKING
*Milk packing machine
*Curd packing machine
*Lassie, masala majjige packing machine
*Flavoured milk packing machine
*Ghee packing machine

34

MYMUL
V ENGINEERING
*Reformation equipments
*Boiler equipment
*Effluent treatment plants
*Electronic generation

VI MARKETING
a. Distribution network
*Agents
*parlours
*Depots
*Franchise
b. Distribution Transport
*Trucks
* Goods auto
*Mobile

.

35

MYMUL
2.5 Organizational Structure and Organization Chart

ORGANISATION STRUCTURE

-

President
MANAGING DIRECTOR
(MYMUL)

Manager
(P&I)
(P&I)

Manager
(dairy)
Manager
(Mktg)

Manager
(MIS)
Manager
(Finance)
Security
supervisor

Deputy manager
(Administration)
Board Of Directors

36

MYMUL
ABBREVIATION
President : President
M D : Managing Director
MYMUL : Mysore Milk Union Limited
D M : Deputy Manager
P & I : Procurement and input department
P : Production department
Mktg : Marketing department
HR : Human Resource department
MIS : Management Information System

Organisation structure is the skeleton of the organisation. It prescribes the
formal relationship among various position and the activities. Arrangements about
reporting, relationship, how an organisation member is to communicate with other
members, what roles and procedures exist to guide the various activities performed by
the members of all parts of the organisation structure.
Organisation structure plays a vital role in achieving the organisational goals.
Organisation structure should be properly designed to facilitate the smooth
functioning of the organisation.
Organisation structure of MYMUL consists of BODs at the top. Then
president, under whom is the Managing Director. He is the person who is responsible
for smooth functioning of the organisation. After Managing Director there are
managers and Deputy Mangers of various departments who are responsible and
accountable for the activities of their respective departments. There are subordinates,
supervisors and employees who are directly linked with department managers.

37

MYMUL
2.6 SWOT Analysis of the Organization
Strength
1. Market leader.
2. Nandini is a trusted house hold brand name.
3. Two lakh farmer members.
4. Provides excellent veterinary, AI, vaccination, Extension facilities, Feeds and
Fodder seeds supply etc., in the field, which cannot be thought off by any
private operator. Hence earned lot of goodwill from member producers, who
patronize the union throughout the year.
5. Has earned the distinction of not failing to deliver the milk to market on time
throughout the year.
6. There are days with no power supply, no water supply; but there is no day
without NANDINI milk supply.
7. Highly remunerative and timely payment to producers.
8. Union is in good financial position.
9. ISO 9001-2000 certificate.
10. Good institutional support from KMF, NDDB, etc.,

Weakness
1. Lack of flexibility in deciding about its operation. No authority over issues
like pricing, offering volume discounts etc.,
2. Political interference.
3. Organizational structure does not permit incentive/ reward for good
performance.
Opportunities
1. Since the Mysore district is under Cauvery basin, perennial greens are
available to the cattle.

38

MYMUL
2. Institutional markets, bakeries, hotels etc., are not fully tapped and these can
be captured preferably by direct marketing.
3. Diversification of milk products like Peda, Mysore Pak.... etc.,
4. Exploit the Human Face, by positioning in the market as an organisation
with social responsibilities of serving the milk produced by paying
remunerative price and serving customer by offering hygienic quality product
at a reasonable price throughout the year. Union is not in the business to
maximise the profit as in the case of private dairies and is acting as price
stabilizing force in the market. Projecting these to the customers will reinforce
the positive image of the organisation in customers minds as a caring
organisation which service to them as its motto.

Threats
1. After liberalization, entry barriers in the dairy industry eased for new entrants.
2. The competition from Co-operatives like Dodla, Heritage, Kamadenu.... etc.,
3. Private dairies procure milk at low cost from producers and sell milk resorting
to unethical trade practices. It is a marketing war in which union has to fight
by rules and other private dairies do not fight by rules. Hence, there is no level
playing field for organization with social responsibilities to compete with
organizations with purely profit motive.
4. Some private dairies are selling homogenised milk, which appears rich. The
union cannot homogenize all its huge quantity of milk due to lack of
homogenizing capacity and increase in processing cost.
5. Plans of major companies like Reliance, ITC to enter into milk market in
future.

39

MYMUL

CHAPTER 3:
DETAILED
STUDY OF THE
DEPARTMENT

40

MYMUL
DETAILED STUDY OF THE DEPARTMENT
Procurement and input department
Purchase and Stores department
Production department
Marketing department
Finance department
Quality control department
Management information system department
Human resource department
3.1 Procurement and Input Department

Manager (procurement & Input)
Deputy Manager
Assistant Manager
Extension Officer G-I
Extension Officer G-II
Extension Officer-III
Sr. Typist Steno
Helpers

41

MYMUL

Introduction:
Raw Material is the basic requirement of every organisation. The sequence of
bringing milk to MYMUL starts from the collection of milk from the individual milk
producer.
MYMUL procures raw milk directly from the farmers through the Dairy Co-
operative societies (DCS). MYMUL has got 71 milk procurement routes and each
route covers around 15 to 20 societies. DCS collects milk from producer which is
stored in cans and transported to MYMUL through trucks. If the main dairy is far
away from DCS, the milk is transferred to nearest chilling centre in order to chill the
milk so as to avoid the growth of micro organisms which is then transported to main
dairy.
MYMUL has got three chilling centres located in Hunsur, Kollegala and
Chamrajanagar. After collecting milk from various DCS, it will be processed in
MYMUL and supplied to the customers. Secondary items like packaging materials,
engineering materials are procured through calling tenders. The payment is made to
supplier of milk on weekly basis and the payment for the transport contractors is made
once in a fortnight. In case of shortage of milk, the Union purchases milk from other
dairy at inter dairy price.
The payment is made to farmers on basis of percentage of Fat and SNF
content at a min of 3.5% and 8.5%. The daily average milk procurement here is
3,12,000.
Function:
DCS supervision: Extension officers will be visiting once in a month to DCS
to supervise the accounts and to guide the members for development of the
DCS.
Providing input activities to milk producers through DCS at right time.
Proper transportation of milk from DCS to dairy.
Proper utilisation of funds under government scheme.

42

MYMUL
The technical input programme of the Union mainly covers the following activities:
Animal Health Care
Artificial Insemination
Feeds and Fodder Development and Extensive Services

Procurement Graph (Avg. Kgs/Day)

0
50000
100000
150000
200000
250000
2008-09 2009-10 2010-11 2011-12 2012-13

43

MYMUL
3.2 Purchase and Stores Department

Deputy Manager (purchase)
Assistant Manager (purchase)
Purchase/Stores
Superintendent Purchase

Administration Assistant G-I
Administration Assistant G-II
Helpers

44

MYMUL
Introduction:
The purchase and stores department plays a vital role in the organisations like
MYMUL, where the core function is production. The purchase department performs
the function ranging from collection of indents from each department to purchasing
through general inquiry or tender. This section basically deals with the purchase of
LPDE films, ghee films, corrugated boxes, cartons, sugar, nitric acid, machinery and
parts, vehicle spare parts, stationery items, oil and lubricants etc., except milk.
Once the purchased items arrive at the union premises, it is taken care by
stores section. Store then sends the material to the respective sections as per the
requirements. If the received materials are not used immediately it is kept into
different places as per its category for the future use. The damaged or obsolete items
are sold to the public through auction or other means.
Purchase Procedure
The purchase process starts when the Managing Director of MYMUL
approves the indent requests from different section and departments.
Document required: Indent along with the note approved by Managing Director.
1) Enquiry will be made with the registered manufactures,
dealers/distributors/suppliers etc.
2) Preparing comparative statement of the offers received
3) Samples quality checking wherever samples obtained
4) Rate analysis
5) Placing before the purchase committee for decision, and then obtaining
approval of the Managing Director or direct approval from the Managing
Director depending upon the sequences
6) Placing purchase order/work orders
7) Quality checking after receipt of material
8) Acceptance
9) Payment as per terms and condition

45

MYMUL
The purchase order consists of the following elements:
Suppliers code number
Date of order
Mysore Dairys inquiry number
Supplier quotation number
Material code number
Description of materials
Units of materials to be purchase
Unit rate of material
Total amount of material
Discount (if any agreed)
Central/ Excise duty
Sales tax
Insurance charges
Delivery period
Payment terms
Signature of the approver
Store section
Store section acts as receiver and holder of purchased goods. Normally, it
purchases the materials on the basis of purchase order provided by the purchase
section. The purchase order basically contains materials required, quantity of material
and the department requiring that material. During emergency purchases, respective
departments can purchase the materials with the approval of MD. Then, it comes to
store section for record and used. The store department is using materials receipt
ledger, store indent book and daily register for efficient stock maintenance.
Division of Stores: General stores, DCS stores, Machinery and Spares.

46

MYMUL
Handling purchase order:
After the purchase order is received, store departments procure the type and
quantity of materials as mentioned in the purchase order.
After the materials for purchase is received from vendor, store department
prepares MRR (Material Received Report) and sends it to the concerned user
departments for the approval. The authority at user division checks the
specification of supply and approves it. Approval certificate is given either by user
division or quality control division.
Two copies of MRR are retained in the store, two copies are sent to purchase
department and one copy is forwarded to finance department for release of
payment. The MRR is registered in record register. The materials are given to the
user division by recording the material issued in the issue register against
prescribed indent form.
The rejected lot will be returned to the respective vendors.
If the materials are unused for 5 years, it is separated from the stock through co-
operative audit and placed in different location for resale. The difference amount
or loss is reduced from the book of account.

47

MYMUL
3.3 Production Department

Manager (Dairy)
Deputy Manager
Office Staff
Assistant Manager
A A G-I A A G-II
Clerk
Typist
Technical Officer
D S G-I
D S G-II
Dairy Operation Dairy Technician Dairy Worker

48

MYMUL
Introduction:
The main objective of this department is to follow up production schedule as
per plan and to maintain a good relationship with other departments in order to
upgrade the technical efficiency of production.
Production department is well equipped and has various types of highly
sophisticated machines imported from Sweden and Denmark. Once the milk is
received from P & I department, it is first weighed with the help of weighing bowl.
Later, it is poured in dump tank. Sample testing is made where fat and SNF content of
milk is accessed. The milk is then sent to production section through stainless steel
pipes.
Later, the raw milk is passed through plate chillers of variable capacity where
it is cooled up to 4-5 degrees Celsius. This cooled milk is further stored in a silo of
30,000 litres capacity.

Production process:
The raw material passes through different process before converting into the
finished good. Here, raw milk is the input material which is processed to deliver
consumable milk and milk products as finished goods.

49

MYMUL
Flow chart for milk processing at MYMUL:

Weighed at the weigh bridge and all the send
details are recorded.

Received milk at the Reception desk

Filtration

Raw chilled milk is re-chilled to less than

Stand

Raw chille

Raw milk recovered through tankers

Weighed at the weigh bridge and all the sender
details are recorded
Received milk at the Reception desk quality testing of milk by the shift
Filtration
Raw chilled milk is re-chilled to less than 5

Skim milk powder (SMP) for
standardizing SNF
Quality testing of SMF by the shift
in-charge of quality control
Raw chilled milk is re-chilled
to less than 5
Quality testing of water &cream by
the shift in-charge of quality control
Raw chilled milk is stored in raw milk
Silos at less than 5
A
A

50

MYMUL

Pasteurization
1. Balance Tank

2. Regeneration-I Auto desludging and
standardization
3. Regeneration-III

4. Heating to more than 72 Phosphate test is done. If
found

5. Regeneration-III Inspect cleanliness of cans

6. Regeneration-I LDPE film
for

pasteurized standardized tonned

Test for Acidity

Flow chart for curds manufacturing at MYMUL
Pasteurization
1. Balance Tank

2. Regeneration-I

3. Regeneration-III

4. Heating to more than 72
for less than 15 secs

5. Regeneration-III

6. Regeneration-I

7. chilling

Auto dislodging and
standardization

Phosphate test is done. If found
positive reprocess the milk
Inspect cleanliness of cans
LDPE film for
all specification
Pasteurized standardized toned milk,
homogenized toned milk/ full cream
milk is stored in pasteurized milk
silos at less than 5
Milk is issued to packaging through HMST
Packed and stored in cold store at < 8
Dispatch to the market
Test for Acidity, Fat, SNF.
If deviations found re-
process the milk
B

51

MYMUL

B

Pasteurized toned milk to
curds pasteurizer
Heat milk to 90 for 5
min & cool to 32-35
Addition of starter culture @
1.2 % to the milk for curd
making & mixing
Packaging in 200 g and 500 g
sachets
Incubation at room at
30-35

Transfer into cold store after the
acidity of curds is more than 0.55
%
Dispatch to the market
Quality testing of milk by
shift in-charge of Q.C
division
Monitor the heating
temperature of milk to 90
and cooling to 32-35
Test quality of starter
culture for purity and
activity
Testing of LDPE film for
all specifications
LDPE film for packing
milk
Test for acidity, fat and SNF.
If deviations found, reprocess
the milk to manufacture the
product

52

MYMUL
Clean in Place System (CIP System) at MYMUL
Every equipments and milk lines are cleaned once every day for milk
processing. Hence to process one litre of milk, one litre of water is used. To clean
these equipments and milk lines, sodium hydroxide and nitric acid of concentration
1% each are used. The procedure followed to clean these equipments and milk lines
are as follows:
1
st
step- Rinse with water
During this step, raw water is passed through equipment and milk lines and
milk residues are drained out.
2
nd
step- Lye (Sodium Hydroxide) step
During this step, lye is passed through equipments and milk lines so that fat
content stacked in equipments and milk lines will be drained out after few seconds
and the remaining lye solution will be collected in lye tank. Again, raw water is
passed through equipments and milk lines so that acid remains in the equipments and
milk will be drained out.
3
rd
step- Acid (Nitric Acid) step
During this step, acid is passed through equipments and milk lines so that
inside milk scaly will be removed and the acid will be drained out after few seconds.
The remaining acid solution will be collected in acid tank. Again, raw water is passed
through equipments and milk lines so that the acid remain in the equipments and milk
lines will be drained out.
4
th
step- Hot water circulation
Hot water at about 80 degrees Celsius is passed through equipments and milk
lines so that lines will be free from all the section.
5
th
step- Fresh water circulation Fresh water at room temperature is passed through
equipments and milk lines so that the lines will be perfectly cleaned and they attain
the room temperature.

53

MYMUL

3.4 Quality Control Department

Manager (Dairy)
Deputy Manager Q.C
Assistant Manager Q.C
Technical Officer
Chemist Grade I
Chemist Grade II
Lab Technician
Helper

54

MYMUL

Introduction:
MYMUL is committed to meet the ever-changing needs of the customers
without compromising the quality of its products. A separate quality control
department deals with the quality checking mechanism at the input, processing and
output level. The milk that comes to MYMUL by milk tankers goes through several
tests before acceptance. Apart from that, quality of milk and milk products is tested in
different levels of production and the quality is maintained.
Quality Objectives at MYMUL:
The basic objectives of the quality control department at MYMUL are:
Improve quality of raw milks received from chilling centres and bulk milk
coolers of the union
Ensure that all the batches of milk, curds, butter and ghee to be sent to the
market confirms to the standard stipulated under Bureau of Indian Standards,
prevention of Food Adulteration Act and AGMARK
Achieve better plant efficiency by carrying out all the maintenance schedule in
time
Achieve cost competitiveness by reducing the water consumption and energy
consumption in the plant to maximum extent
Maintain high standard for housekeeping in plant
To establish high quality brand in the market for its products

Function:
Quality is the essential attribute attached to any product. All products and
services that want to be a leader in the market should provide the superior quality.
MYMUL also follows the same strategy. Q. C department at MYMUL ensures the
quality of the milk and products to the prescribed standards. It is also responsible for
formulating the quality control policies and development of standards for the milk and

55

MYMUL
milk products from time-to-time. The standards are mandatory and include the latest
quality parameters.
The quality control department randomly assesses the quality of milk and the
products produced by the union. It ensures that they comply with the standards and
also provides instructions for improvement. Routine inspection of the dairy plant and
chilling units are part of the responsibility of quality control department to assess the
machinery condition, cleanliness and hygiene and processing parameters being
followed. The Q. C department tests the packaging materials purchased by the union.
The quality testing equipments are checked regularly. The new packaging materials
and newly introduced products go through rigorous quality control checks by Q. C
department. Usually Q. C department tests the purchased materials that are directly
concerned with food. Only after the approval of Q. C the materials purchased are
accepted and stored for record.
Tests carried out for milk and milk products:
Analysis of milk:
1. Argunoreptic test:
This test is conducted to smell, sweet and flavour of milk.
2. Adulteration test:
This test is conducted to see if the procured milk is adulterated with salt,
sugar and soda by the producers.
3. Clot On Boiling test:
This test is conducted to determine heat stability of the milk.
4. Fat and SNF test:
During this test, amount of SNF/FAT is tested. Basically, milk consists
of 85 % water and 15 % solid particles. Price of the milk received from
farmers is determined by its SNF/FAT content. Higher the SNF/FAT in the
milk, greater will be its price.

56

MYMUL
Analysis of curd:
There are various tests conducted for the curds in Quality Control department.
They are Acidity test, Yeast and Mould test, coli form test, Body and Texture, flavour
test, Fat and SNF test are also conducted to know the Fat and SNF percentage.
Analysis of Butter:
The various Quality Control tests conducted for butter are Butter Fat test, curd
content test, moisture test, Acidity test, yeast and mould test, coli form counts.
Moisture test is conducted to determine the moisture content of butter according to
predetermine levels of moisture content in the butter.
Analysis of Ghee:
The various Quality Control tests conducted for Ghee are moisture test,
Acidity test, RMV (Richards Mussel Value), PV (Paulsen Value) test and Fat test.
Here, the fat content, acidity percentage and moisture percentage of the ghee is
compared with the predetermined levels of the fat contents, acidity and moisture test.
Standardisation of milk and milk products

PRODUCTS

FAT %
(min)

SNF %
(min)

ACIDITY %
(max)

MOISTURE %
(max)
Toned milk 3 8.5 0.16 -
Double toned
milk
1.5 9 0.16 -
Standardized
milk
4.5 8.5 0.16 -
Full cream
milk
6 9 0.16 -
Butter 80 - 0.07 16
Ghee 99.7 - 1.4 0.3
Peda 20 - - 20
Curds 3 8.5 0.95 -
Lassie 1.3 NA 0.6 -

57

MYMUL

3.5 Marketing department

Manager (Marketing)
Deputy Manager Marketing
Assistant Manager
Marketing Officers
Marketing Superintendent
Marketing Assistant
Helpers

58

MYMUL
Introduction:
Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products and
services of value with others. Marketing is a customer-centred philosophy rather than
product-centric philosophy. The job is not to find the right customer for our products,
but the right products for our customers.
Marketing is the vital function of any organisation irrespective of its type of
operation. In general, task of marketing department or marketer is to device marketing
programs to create, communicate and deliver value for consumers.
Functions:
Develop integrated business plan
Allocate sufficient budget for advertising and sales promotion
Develop effective advertising and PR campaigns
Develop efficient and effective distribution channel
Formulate strategies to out-beat competitor
Improve sales and market share for Nandini products
Create awareness for the Nandini products
Retain Nandini products as the market leader
Identify the market demand for milk and milk products
Perform regular market surveys to know the feedback of customers regarding
quality of the product & its service.

Marketing at MYMUL:
MYMUL is marketing milk and milk products in the brand name of
Nandini. The impressive growth in the sale of milk by MYMUL over the years is
due to its persistent efforts to maintain timely supply, maintaining quality and
attending to the complaints of consumers and agents with prompt follow-up action.
FRESH & PURE is the motto of MYMUL.

59

MYMUL

Mysore Dairy markets the following types of milk and milk products:
Toned Milk : 3.1 % Fat and 8.5 % SNF
Double Toned Milk : 1.5 % Fat and 9 % SNF
Homogenised Toned Milk : 3.5 % Fat and 8.5 % SNF
Full Cream Milk : 6 % Fat and 9 % SNF
Curd
Sweet Lassie
Ghee
Butter milk
Peda
Mysore Pak

Total milk sales (Avg. Litres/day)

0
20000
40000
60000
80000
100000
120000
140000
2008-09 2009-10 2010-11 2011-12 2012-13

60

MYMUL

Total curd sales (Avg. Litres/day)

Distribution system:
Milk and milk products are distributed in two times, at morning and evening.
The distribution routes are allocated on the basis of route-wise, agent-wise and
quantity. Agents are appointed based on the regulation of the milk union and Co-
operative Act, after depositing some amount as a security deposit. Minimum distance
of one kilometre is maintained between one agent to the other. The agent takes milk
and milk products twice a day. After deducting the commission, the remaining
payable amount is remitted in two ways: cash or credit system.

Marketing strategies of MYMUL:

All the heavy vehicles are changed to medium insulated vehicle to ensure timely
supply
Brand building is taken up through acrylic sign boards, glow sign boards, truck
painting, wall paintings etc.,
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2008-09 2009-10 2010-11 2011-12 2012-13

61

MYMUL
To strengthen the Home delivery by encouraging the delivery boys by providing
them with water proof caps and bags.
Provision has been made to encourage the agents to sell more milk during flush
(Oct - Dec) by giving 20 ps. Incentive
School children/ Mahila Mandal (women) will be taken for dairy visit to develop
confidence about quality of milk
Door-to-door campaigning is taken to educate consumers about quality of
NANDINI milk compared with the other existing private brands of milk
Agents orientation programme is conducted every year with a view to encourage
them by solving their problems
Milk is made available throughout the day by opening ANY TIME MILK
COUNTERS
By restructuring marketing department more focus is given to key thrust areas in
market development activities like consumer education, identification of new
market for the existing products and planning of effective sales and promotion
programme.

Promotional measures adopted by MYMUL:

It is organising consumer awareness programme as a part of market development
program to create awareness on Nandini milk. It includes door-to-door
campaigns, organisational meetings and Mysore Dairy Plant visit
Distribution of Tarpaulin bags to door delivery boys
Wall painting was done
Advertisement campaigns in the electronic media
Public contact programme of one day is being launched in all the taluks of Mysore
district
Periodic survey of households to collect the feedback and to attend the
weaknesses observed
Training the marketing staffs at all levels regarding various aspect of promotion

62

MYMUL

Sales at MYMUL:

Sale of Milk and Milk Products (Avg. Per day)

Sl.No Product Quantity Rate (Rs.)
1 Toned Milk (Lit) 120557 19.00
Double Toned Milk 6162 18.00
Homogenised Toned Milk 6663 20.00
Full Cream Milk 10597 24.00
Total 143979
2 Curd (kg) 26001 24.00
3 Lassie (200 ml) 1177 6.00
4 Butter Milk (200 ml) 1332 5.00
5 Peda (kg) 165 200.00
6 Mysore Pak (kg) 40 230.00
7 Ghee (Lit) 2883 270.00

63

MYMUL

3.6 Finance Department

Manager (finance)
Deputy Manager Finance
Assistant Manager Finance
Account Officer
Superintendent
Account Assistant G-I
Account Assistant G-II
Helpers

64

MYMUL
Introduction:
Finance department is one of the most important functional departments of
any organization. It aims at gathering the funds from various sources to meet the
financial requirements of the organization. Capital budgeting, capital structure and
working capital management are three important areas of decision making by finance
department.
In capital budgeting, finance department develops efficient capital investment
plans for the favourable operation and growth of the company. It accounts for huge
amount of managerial time and energy.
In capital structure decisions, the means to finance the investment projects is
finalised. The optimum debt-equity ratio is decided in order to minimize the cost of
financing the projects. But it should not conflict with the organizational objectives.
With the increase in equity, the long-term liability of the firm is increased whereas the
increase in debt will increase the risk for the firm.
The difference of current assets and current liabilities is the working capital
for the firm. Working capital management deals with the short-term financial
management of the firm. It is very important for running the day-to-day financial
activities in the organization, without any interruptions. The credit policy to
customers and the inventory policy at organization are important things to be taken
care of. The appropriate sources of short-term financing are to be decided.

Objectives:

65

MYMUL
To protect the financial interests of the company
To help in achieving the business results
To monitor and control the collection and payment of funds
Liaison with banks and financial institutions
To monitor the cost control and cost reduction techniques
To monitor the budget and budgetary controls
To maintain a liquidity position
To access the working capital requirements
To maintain adequate funds to carry on the business effectively

Functions of finance department at MYMUL:
Prepares and maintains Journal book, Ledger accounts, profit & loss accounts and
Balance Sheet for each year
To analyze the financial position of the organization regularly by maintaining the
records of financial statements in efficient manner and analyzing it
Computes the working capital requirements and decides the sources to finance it
in a less risky and cheap way
Calculates the future requirement of funds and find out methods for making it
available
Maintains good relationship with the other departments by making them available
the financial information as and when needed.

Annual Turn-over ( in Lakh Rupees)

66

MYMUL

Net Profit ( in Lakh Rupees)

0
2000
4000
6000
8000
10000
12000
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
0
20
40
60
80
100
120
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

67

MYMUL

3.7 Human Resource Department

Deputy Manager (Administration)
Assistant Manager
Administration officer
Administration Superintendent

Administration Assistant G- I
Administration Assistant II
Helpers

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Introduction
Organizations are not mere bricks, mortar, machineries or inventories. They
are the people. It is the people who staff and manage organizations
The success or failure of any organization is basically dependent on the quality
of human resource it has. Human resource gives the competitive edge to an
organization from the other. So, every successful company gives importance to its
human resource and maintains a separate department to deal with it.
Currently, MYMUL has 381 employees at total. To deal with the human
resources at MYMUL, there is a separate department called as Administration
Department or HR Department. It deals with all the dimensions of the employees at
MYMUL.

Recruitment and Selection:
A committee called Expert Panel Committee, the apex body of the union
which comprises of: MD of MYMUL, President of MYMUL, one representative from
the KMF, one from the Board of Directors of NDDB, one member from the Registrar
of the Co-operative Societies, is authorized for hiring new employee to any post or
cadres at MYMUL.
Procedure for Selection:
If a post is to be fulfilled by competitive examination, then after giving adequate
publicity in the newspaper, the appointment procedure will be carried out in the
order of merit from the list of candidates prepared by the selection committee or
expert panel
For direct selection, after giving adequate publicity in leading newspaper to the
recruitment, the appointing authority may determine in the order of merit
Incase if the post is being filled by internal promotion from its own staff, it is done
by selection of a person on the basis of merit and suitability in all respects to
discharge the duties of the post with due regard to seniority from among the

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persons eligible to promotion will be screened by the committee prescribed by
MYMUL.
Age limit: For direct recruitment the age limit for general candidates is that one must
have attained the age of 18 years and not attained the age of 35 years.

Service benefits:
The employees of MYMUL are entitled to various service and welfare
benefits. Some of the benefits provided to employees are:
Dearness Allowance (D.A): It is provided as par with the state government
employees. The D.A amounts to 22.25 % of Basic Salary.
House Rent Allowance (H.R.A): Each employee is entitled for HRA. It amounts
to 13 % of Basic Salary.
Conveyance Allowance: The employees owing four wheelers get a conveyance
allowance equivalent to the cost of 15 Litres of petrol whereas the employees with
two wheelers get amount equivalent to 20 Litres of cost of petrol and others 5
Litres of petrol
Shift Allowance: A shift allowance of Rs. 2/day is provided to the workers
working in the second shift i.e. from 2 P.M to 10 P.M. and shift allowance of Rs.
3/day is provided to workers working in third shift i.e. from 10 P.M to 6 A.M.
Heat Allowance: An employee working in the boiler section get an additional
rupee per day plus 250 ml of milk for self consumption on duty.
Cold storage Allowance: The employee working in the cold store get an additional
rupee per day plus 250 ml of milk for self consumption on duty
Attendance Benefits: The employees who remain regular get the additional
amount of Rs. 30 per month and he or she is allowed to be late by an hour once a
month.
Bonus: The bonus is awarded to employees in accordance to The Bonus Act 1965,
amended by Indian government from time to time.
Milk at Subsidized rate: Each employee gets a subsidized milk facility. For every
litre milk purchase, litre milk at free all the time. During flush season (Oct

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Nov) when the procurement of milk is very high, each employee gets litre of
milk at free
Free supply of Ghee: Each employee gets 500 g free supply of ghee twice a year.
Provident Fund: The provident fund facility is provided to employees as per the
Employees Provident Fund and Family Pension Fund Act.
Subsidized Canteen: Mysore Dairy has got one canteen to provide convenient and
cheap food facilities to its employees. Here, the employees get breakfast and
meals at very cheap prices.
Medical Facility: It covers the employee and his dependents, children less than 18
yrs. For Inpatient up-to Rs. 50,000 per annum is provided.
Leaves:
Earned Leave: An employee can take earned leave of 30 days per year, which if
not taken can be accumulated for a maximum of 240 days.
Half Pay Leave: The employees are also entitled to 20 days of half pay leave per
year.
Casual Leave: An employee can take 15 days casual leave in a year, but it should
not exceed 7 days in a stretch. Casual half day leave can also be taken.
Maternity Leave: Female employees are availed 2-3 months maternity leave. But
it is granted only twice in ones entire service period.
Extraordinary Leave: It is only provided to the permanent employees and can be
granted only when no other leaves are left to the employees credit. This leave is
granted not more than 60 days at once and can be provided maximum of 5 times
in entire service period.
Promotion and Transfer:
Promotion is solely on the basis of sensitivity and experience. Transfers are always
accompanied by promotions

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Induction:
After an employee is employed in MYMUL, he or she is made familiar to the union
and also know the objectives, values, functions and the operations. This helps the
employee to interact with senior staff members from various departments.

Training and Development:
Training and Development refers to the imparting of specific skills, abilities
and knowledge to an employee. Training refers to the process of imparting specific
skill. Development refers to those learning opportunities designed to help employees
growth. The need for training and development is determined by the employees
performance deficiency, computed as follows:
Training and development need= Standard performance Actual performance
Benefits of Training and Development programs in MYMUL:
Improves the morale of the work force.
Helps people identify with organisational goals.
Improve the job knowledge and skills at all levels of the organization.
Aids in improving organizational communication.
Helps employees adjust to change.
Improves the coordination between employees.

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3.8 Management Information System (MIS) Department

Manager (MIS)
Assistant Manager
System Officer
Assistant

Peon/Helpers

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Introduction:
Management Information System (MIS) is the integrated part for providing
information to supporting operation, management and decision making in an
organization. It mainly deals with processing information and conversion of inputs
into outputs.

Function:
MIS is a systematic effort to furnish timely information to the top management.
The main function of this department is to collect information from the production
department everyday in the form of daily reports. The information collected is in the
form of the following:
Actual production (output).
Break down of machinery ( if any ).
Absenteeism of workmen ( if any ).
Raw material storage ( if any ).
Other details.
The information thus is received, classified, processed and analysed. After the
information is thoroughly analysed, the department combines it in the form of weekly
report and monthly reports. These reports are submitted to MD who in turn issues
instructions to the concern department for further actions. The department will take
care of avoiding the wastage and other production losses. It highlights the importance
of optimum utilization.

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CHAPTER 4:
STUDY OF
SPECIFIC
MANAGEMENT
PROBLEM

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Problems
Shelf life of some products or some Sweets like Peda, Mysore pak is less
Suppliers of milk that is the villagers are not happy with the price that is fixed for
the procurement of milk
There is a lack of awareness among the rural population about the various
products produced by MYMUL
Absence of proper communication channels

FINDINGS
Following are the findings during the study
MYMUL is serving 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 upliftment of farmers.
MYMUL is earning profit year after year and it is not confronting any financial
problems.
MYMUL is equipped with fully automatic systems which ensure total quality
maintenance.
It has got its own quality control department with fully equipped laboratory and
equipments that help detecting any adulteration or any such other defects.
Through the use of advanced technology, MYMUL provides its customers
bacteria free and balanced nutritious milk.
The channel of communication is good in organization
Maximum employees are satisfied and have accepted the rules, regulations and
policies of the organization.

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CHAPTER 5:
RECOMMENDATIONS
AND
CONCLUSION

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MYMUL
SUGGESTIONS
The following suggestions may be provided to enable MYMUL expand its
market share and maintain the present market leadership as well as to improve its
position in the future years.
There should be more number of Nandini milk parlours in Mysore city and
outside.
Organisation should try to improve the packaging of the product to prevent
leakage.
Organisation should try to adopt more and more new technology and methods
of production to survive in this competitive market.
The company should provide some attractive schemes for the regular
consumers as well as retail sellers.
MYMUL must adopt professionalism in its all-working departments.
Facilities and benefits for Agents, Retailers should improve still better. So that
the turnover of the Retailers will be reduced and market shares will be
increased.
It must guide the consumers regarding its product by giving various
Demonstration programmes.
Online computer systems (website) have to be created by the organisation.

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CONCLUSION
Mysore dairy started functioning from 1975 under the World Bank aided
Dairy Development Project and the union was registered on 23/11/1976. After
bifurcation of Mysore and Mandya District Co-operative Milk Producers Societies
Union on 1/4/1987, it is renamed as Mysore Chamrajanagar District Co-op. Milk
Producers Societies Union Ltd. This dairy offers the best quality milk in Mysore-
PURE & FRESH.
The Mysore Chamrajanagar District Co-op. Milk Producers Societies Union
is marketing milk and milk products in the name of Nandini are the best quality. It
has been catering the needs of majority of population of Mysore. The future goal of
the organisation is to computerize the whole organisation. The company should lay
emphasis on modernization and product diversification by which the company can
meet the fast changing requirements of the markets and to keep on with the
competitors. Now a days, competitors have been entering into this field in order to
exploit the utility of this industry.
The slogan of Mysore Chamrajanagar District Co-op. Milk Producers
Societies Union is QUALITY EXCELLENCE FROM COW TO CONSUMERS

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6 BIBILOGRAPHY
OFFICIAL WEBSITES:
1) www.kmfmymul.com
2) www.kmf.nandini/mymul.com
3) www.mysoremilkdiary .com
4) www.kmf/mys/nandini.com

BOOKS REFERED
1) 2006, Production Management, Kalyani Publications ,
K.Aswathappa
2) 2007, Human Resources Management, Himalayas Publications
Shashi.k.gupta

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7 ANNEXURE

INCOME AND EXPENDITURE ACCOUNT
Expenditure Amount Income Amount
Staff expenses 14674840.89 Trade profit 76117068.87
Administrative expenses 20889292.10 Other income 6469226.00
Tax 1065513.13 Interest on investment and deposits 521452.00
Selling distribution expenses 21201774.24 Technical income 5765314.90
Repair vehicle 288972.16
Interest and bank commission 3404705.65
Technical expense 7015099.35
Depreciation 9023336.00
Net profit 11309555.14
Total 88873061.66 Total 88873061.66

Organizational Study of Mysore Milk Union Ltd

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