HASSAN MILK UNION CHAPTER -1 INTRODUCTION: As in every market the world mightiest are in India as elsewhere, they are

hunger for growth and push the market into technological up gradation and shift the battle ground to this area of competence. The competition is now on the horizon through promises to be different, the technology coming in and into a liberalized market, where the consumer has suddenly worked up to a new brand milk even has the old order straggles into modernization of its product to a large position of the market might remain dull for milk and milk products As a major enterprise, the market milk industry is of comparatively recent origin even in developed dairying countries (such as the USA) through ancient written records report milk as an important food, it's processing and distribution as a separate commercial business did not develop in those countries until concentration of population in the cities reached a high level in the middle of 19th century. Dairy industry is of crucial importance to India. The country is the world's largest milk producer, accounting for more than 13% of world's total milk production. 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. Dairying has been considered as one of the activities aimed at alleviating the poverty and unemployment especially in the rural areas in the rain-fed and drought-prone regions. In India, about three-fourth of the population live in rural areas and about 38% of them are poor.

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HASSAN MILK UNION The milk processing industry is small compared to the huge amount of milk produced every year. Only 10% of all the milk is delivered to some 400 dairy plants. A specific Indian phenomenon is the unorganized sector of milkmen, vendors who collect the milk from local producers and sell the milk in both, urban and non-urban areas, which handles around 65-70% of the national milk production. In the organized dairy industry, the cooperative milk processors have a 60% market share. The cooperative dairies process 90% of the collected milk as liquid milk whereas the private dairies process and sell only 20% of the milk collected as liquid milk and 80% for other dairy products with a focus on value-added products. The NDDB has recently put in place .Perspective 2010.To enable the cooperatives to meet the new challenges of globalization and trade liberalization. Like other major dairying countries of the world, the Indian cooperatives are expected to play a predominant role in the dairy industry in future as well. However, India is in the meantime, attaining its past glory and is once again becoming .DOODH KA SAGAR. Milk As such will not become a product. Milk produced from milk producer generally, village former is collected and procured in dairy, processed milk sachets are made and marketed to reach the consumer then only milk becomes a product of the organization. Milk is produced from the farmer or milk produced procured, processed and marketed to customers in the cities. Since the milk purchased from farmers or milk producers who lived in rural places of the district there by the economic condition of the farmers are elevated. By the same time good quality and vitalized milk is supplied to the consumers in the city areas. at their feasible price the main aim of the NHPP milk unit is served by this at every paisa and supply of milk.
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HASSAN MILK UNION Gradually farmers within easy driving distance began delivering milk over regular routes in the cities. This was the beginning of the fluid milk sheds which surround the large cities of today. Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because lack of Suitable means of transportation and refrigeration.With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. The milk supply of the large cities of the USA now comes largely from 80 - 160 Km or more away. Nearly all the milk in the USA before 1999 was delivered as raw (natural) milk. Once Pasteurization was Introduced, It caught on rapidly, mechanical refrigeration contributed to the rapid development of the factory system of market milk distribution. Even today, hospitality could be considered generous and warm only with serving of milk products. Today, Indian milk products are the largest and fastest growing segment of the dairy industry. Milk and milk products are highly valued in Indian society as a source of nutrition. This concept has with stood the test of time. Dairying took roots in the north- west part of the Country and spread virtually to the whole of the sub-continent. In India, some 70 million farmers in 500000 villages mostly produce milk in small quantities. Buffalo and cow, and to a limited extent, goat are the main milk animal. Buffalo Constitutes some 54%, cow 43%, and goat 3% to India's total milk output. 1. In India, the market milk industry may be said to have started in 195051, when the commissioned. 2. Handling of milk in sophisticated milk unions (Oldest 1913: Allahabad).
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central dairy of the Aare milk colony in Bombay was

HASSAN MILK UNION 3. Long distance refrigerated rail- transport of milk from Anand to Bombay since 1945. 4. Pasteurization and bottling of milk on a large scale for organized distribution was started at Aare (1950), Calcutta (1959), Delhi (1959), Worley (1961), and Chennai (1963), 5. Milk plants were established under five year-plan for dairy

development all over India with the dual object of increasing the national level of per capita availability of milk and ensuring better returns to the primary milk producers. The main aim was to produce more, better and cheaper milk. The market milk industry in the advanced dairying countries of the world has now reached high level in sanitary production, transportation, processing, and distribution. Credit should also be given to producers, distributors, and manufacturers of dairy equipments for setting high standards. Dairy technology is the scientific basis of maintaining the herd of cows and buffaloes, collecting and preservation of large quantity of milk and producing to meet the demand of urbanization. The Karnataka milk federation is most popularize KMF, evolved itself as a premier and most profitable dairy farmers organization in the state of Karnataka. Karnataka dairy development corporation was formed; the company grew itself successfully engaged in the fast and as its spreads the wings of routine commercial production of new found rural economic activity. These organized dairies have been pasteurized milk products. Milk is highly nutritious and majority of Indian population rely on milk for their protein supplement, milk is obtained by breed cows and buffaloes, either manually or through satirized milk cream, ghee,

SRI SIDDHARTHA INSTITUTE OF MANAGEMENT STUDIES , TUMKUR.

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HASSAN MILK UNION cheese, condensed milk protein are the dairy products. Increased population and its growth rate in relation existing milk. Animals, a caused an imbalance further diverted between excess the demand in and supply condition of milk production and marketing of milk has been considered profitable business the the depending of the agriculture folk to concentration of population in rural areas the nature of unemployment and underemployment attention rural consider milk production as a subsidiary occupation.

CHAPTER-2 PRINCIPLES OF THE COMPANY AIMS AND OBJECTIVES Hassan co-operatives milk producers societies union is completely an autonomous body consisting of representatives from milk producers as policy makers. The area of operation is districts of Hassan, kodagu and Chickmagalore. The milk union also aims at sustainable development of rural areas through proper planning, training, strict implementation and follow up of progress of various schemes offered by both state and central government. Formation of dairy co-operative societies under the principle of co-operation to encourage small, marginal farmers and agricultural labours to take up dairy activities. To provide continuous and remunerative market for the surplus milk in the rural areas. To supply quality milk to customers in the urban areas at a competitive price.
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HASSAN MILK UNION To provide necessary technical inputs to farmers to produce good quality milk and to facilitate increase in milk yield. To provide self-employment to rural folk and to make them economically self-sustainable by which the migration of urban areas is minimized. COMPANY VISION, MISSION, GOALS and OBJECTIVES: VISION: The union thrives hard to adopt the mode and eco-friendly technologies to produce milk and milk products of international standards to make our presence prominent the global market MISSION: Hassan milk union aims to render the best services at nominal cost to its members and to increase milk production and produce good quality milk by paying remunerative sssprice throughout the year, thereby improving their economic and social condition while ensuring high quality milk and milk products to the delighted level of the consumer GOALS AND OBJECTIVES: The milk union was started 4th june 1975, they want to develop their milk union like AMUL CO-OPERATIVE SOCIETY . To increase quality of milk. To increase their sales from 1,25,000-2,00,000 litres per day in future years Increase the sales by conducting many programs like consumer information program, consumer diary visiting programs, hotel own information program etc. To increase the members of the union also. To regularly supply the NANDINI milk to all the cities according to customer needs.
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rural folk to

HASSAN MILK UNION

CHAPTER-3 PROMOTERS OF THE COMPANY The govt . Of karnataka controls and manage the kmf.

The managinig directors of kmf:VENKATARAMU. The chairmans of the kmf:REDDY. The head of manager of the HAMUL:The dept. manager of the HAMUL:-

Mr. Dr M.N

Mr. SOMASHEKAR

Mr. A.C Prakash Mr. Ranganatha

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HASSAN MILK UNION The securtary of HAMUL:The production manager of HAMUL:The marketing manager of the HAMUL:The financial manager of the HAMUL:The HR manager of the HAMUL:Mr.kumar Mr. Shridar Mr. Shivpraksha Mr.Rangaswamy Mr. NAGARAJ B.R

CHAPTER-4 PRODUCT PROFILE ACCEPTANCE CRITERIA FOR DIFFERENT OF MILK PRODUCTS

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HASSAN MILK UNION

S L . N O 1

TYPE OF PRODU CT

COLOUR

BODY& TEXTURE

FLAVO UR

FAT %

SNF %

MOIS TURE %

% FFA (Olei c acid)

ACIDI TY C ACID 0.9 Maxim um % LACTI

CURD

Creamish yellow

Soft & Firm

Sweet mildly acid

3.1

8.50

PEDA

Pale yellow with slight brown tinch

Soft granular

& -

20 Mini mum

15-20

GHEE

Bright

Medium course very

to Nauty or

9999.5

0.5 Maxim um

1.4 Maxi mum

grains with slightly little cooked liquid fat 4 BUTTER MILK White with slight greenish Masala -

0.4 Maxim um

NANDINI HOMOGINIZED MILK: It is a pure homogenized, skimmed,

pasteurized, processed & packed hygienically.

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HASSAN MILK UNION It contains 4.5 % fat & 8.5% SNF. Rich, creamier and tastier milk.. Ideal for preparing home-made sweets & savories. Available in 500ml and 1 ltr packs. Energy Carbohydrate Sugar 60KCAL. 4.7g. 4.7g. Proteins Minerals Calcium Vitamin A TONED MILK: It is milk which contains 3.0% fat and 8.5% SNF. Available in 500ml and 1 ltr packs Energy Carbohydrate Proteins Minerals Calcium Vitamin A 35ug. 60KCAL. 4.7g. 3.3g 0.7g. 124mg. 3.3g 0.7g. 124mg. 35ug.

NANDINI GOOD LIFE:

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HASSAN MILK UNION

Cows pure milk, UTH processed, bacteria free in a tamperproof tetra-fino pack which keeps this milk fresh for 60 days without refrigeration unit opened. Available in 500ml Fino and in 200ml Bricks at premium stores across the state. NANDINI SLIM:

Cows

pure

milk,

homogenized,

skimmed.

UTH

processed

milk bacteria free in a tamper proof tetra- fino pack which keep the milk fresh for 60 days without refrigeration unit opened. Nandini Good Life Slim skimmed milk is 99.5 % fat free. Available in 500ml Fino and in 200ml Bricks at premium stores across the state. CURD:

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HASSAN MILK UNION

It is made from milk. Its thick and delicious. Giving all the goodness of homemade curds. Available in 200gms and 500gms sachet. Energy Carbohydrate 58KCAL. 3.9g. Fat Minerals Calcium Vitamin A 3.3g 0.7g. 120mg. 35sssg.

BUTTER MILK: Butter milk is a refresing health drink. It is made quality curds and is blended with fresh green chillies, green coriander leaves, asafetida and fresh ginger Buttermilk is packaged in 200ml packet. Nandind spiced Butter Milk is a refresing health drink. Nandini spiced butter promotes health and easy digestion. It is available in 200ml packs and is priced at most competitive rates. So that is affordable to all sections of people. NANDINI PEDA:

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HASSAN MILK UNION No matter what you are celebrating! Made

from pure milk using sugar. Nandinipeda is a delicious treat for the family. Store at room tempreture approximately 7. Available in 250gms packs containing 10 pieces each. Self life of 6 days at ambient temperatures . INGREDIENTS: Milk solids, sugar. Energy Total fat Vitamin A Cholesterol Carbohydrate Proteins Calcium MUFA PUFA NANDINI GHEE: A taste of purity. Nandini Ghee made in from a pure 411KCAL. 17.1g. 196ug. 51mg. 51.3g. 12.9g. 618mg. 4.4g. 0.5g

butter. It is fresh and pure with a delicious flavor. Hygienically manufactured and packed special pack to retain the goodness of pure ghee. Available in 200ml, 500ml, 1000ml, sachet, 5 ltr tins and 15.0 k.g tin. Self life of 6 months at ambient temperatures. NANDNI MYSORE PAK

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HASSAN MILK UNION

Fresh and tasty, Nandini Mysore Pak is made from quality Bengal Gram, Nandini Ghee and Sgar. Its a delicious way to relish a sweet moment Available shrink in 250gms, packed to 500gms, preserve ppcccontainer

freshness. Can be kept for 7 days.

GULAB JAMON MIX Great way to those soft and juicy jamoon treats. At home! NandiniGulabJamoon Mix is made from Nandini Skimmed milk powder, maid, soji and Nandini special grade Ghee. Available in 100gms and 200gms standy pouch with a five layer foil lamination.

FLAVOURED MILK Sterilized flavoured milk, a nutritious and healthy drink and an all season wholesome drink available in five different flavourespineapple, rose, pista, badam, and orange. Apart from refreshing Available in 200ml. natural energy.

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HASSAN MILK UNION

ICE CREAM Nutritious, delicious at creamy ice cream is

manufactured vanilla, chocholate, vanilla..

ISO

9002/HACCp pineapple, kesarpista,

certified mango, orange

mother dairy modern plant. The range includes strawberry, butter scotch,

and mango candies, chocobar and ball varities Available in 500ml and 1ltr packs.

MILK POWDER Enjoy the taste of pure milk! Powder made from pure milk, processed and packed hygienically. Available in 50gms, 100gms, 200gms, 1 kg, and 25 kg pack.

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HASSAN MILK UNION

CHAPTER-5 INDUSTRY PROFILE Introduction ORIGIN OF THE DAIRY INDUSTRY The Indian independence. A successfully Dairy large Industry number in the of has made rapid progress and since modern milk plans product of

factories have since been established. These organize dairies have been engaged routine commercial production pasteurized milk and milk products. India is the worlds largest milk producer certified by International Dairy INDUSTRY. This is the reason for the recognition of India as a dairy giant by the United Nations Food & Agriculture Organization (FAO). India has become the worlds No.1 milk producing country, with output in 1999-2000 (marketing year ending March 2000) forecasted at 78 million tones. The annual rate of growth in milk production in India is between 5-6 percent, against the worlds at 1 percent . Indias annual milk production has more than trebled in the last 30 years, rising from 21 million tons in an anticipated 80 is million largely tons in 2001. to the This rapid modernization credited contribution 1968 to and dairy of growth

cooperatives, under the Operation Flood (OF) Project, assisted by the many multi-lateral agencies, including the European poverty Union, the World Bank and WFP (World Food Program me), In the Indian context of and malnutrition, milk as a special role to play for its many income to nutritional advantages as well as providing supplementary some 70 million farmers in over 5,00,000 remote villages. Milk is the raw material of the dairy industry, which cannot be created artificially and stored for long time. The term MILK MARKET
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HASSAN MILK UNION refers to the fluid wholed that is sold to the individuals usually for direct consumption. The Dairy Industry has come stage because of the National Dairy up to the Board present and CoDevelopment

operation of the Government. Effective and coordinated efforts of the National Dairy Development Board lays down rules and regulations to be followed by the various cooperatives milk societies. AMUL (Anand milk union ltd) was a pioneer in starting a cooperative milk products society and there after many cooperative societies where started. World Bank also had given credit of Rs.78 crores for starting another society has Amul in 1975. In the year 1970 Operation fund gave another boost to the dairy industry by providing soft loans, subsidies, plans, etc These made dairy industry flourish and the members of the cooperatives milk producers society where able produce a large amount of milk. The continued under Operation Flood-II & III. various activities sostarted

Operation Flood, launched in 1970, has been instrumental in helping the farmers mould their own development. Thus, helping reach milk to consumers in 700 towns and cities through a National Milk Grid. It also helped eradicate the need for middlemen there by reducing the seasonal price versions. As a result of the cooperatives structure the whole exercise production and distribution of the milk and milk products has become economically viable for farmers to undertake on their own. In this manner the farmer himself his own labour, instead of surrendering its 3rd phase in can enjoy the fruits of a majority of the profit to Hailed as Indias most

corrupt middlemen. Operation Flood, which started in 1970, conclude 1996 Operation Flood ambitions and highly successful rural development project has turned dairing in to a cross economic activity in India. The World Bank for its achievements has launched the 3rd Flood , which culminated in April and final phase of Operation 1996 Operation Flood ,
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has

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HASSAN MILK UNION helped knit ten million farmers members, spread over 70,000 villages in to a catalyst of White Revolution in the country. As India enters an era of economic reforms, agriculture, particularly the livestock sector, is the position being a major growth area. The fact that dairy could play more constructive role in the promoting rural welfare and reducing poverty is increasingly being recognized. For example, milk production alone involves Company can assess from the present more than 70 that Dairy

million producers, each raising one or two cows / buffaloes. scenario Industry is one of the most important industry with a high level of razor-edged competition. Competition is many due to the large number brands in the market and milk being a staple food to almost every human being. Even today the leading nation is one, which is capable of obtaining food in abundance for their people. The Military Dairy Farms ( oldest in Allahabad, 1889), the beginning salient features of the market of milk industry so far have been: MARKET OF MILK INDUSTRY IN INDIA: In organized milk handling was made in India with the

Establishment of the following: Handling of milk in co-operative Milk Union ( oldest: Allahabad, 1913 ) established all over the country on a small scale in the early stages. Pasteurization and bottling on a large scale for organized distribution was started long distance refrigerator rail-transport of milk from AMUL to Mumbai since 1945. As Aare (1950), Worley (1961),Calcutta ( Haringhata, 1959), Delhi (1959), Chennai (1963), etc.,
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HASSAN MILK UNION Establishment of milk plant under the five-year plan for dairy development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuring better return to the primary milk producer. Their main aim was to produce more, better and cheaper milk. Actual expenditure of the milk industry in Indias first three Five-year plans: Plan period I five year plan (1951-55) II five year plan (1955-61) III five year plan (1961-66) Expenditure Rs. 7.8 Cores Rs. 12 Cores Rs. 36.6 Cores

GROWTH & DEVELOPMENTOF THE INDUSTRY: Until the year 1940, there was very little published information of the method of preparation and use of these products. The credit for the publication on the subject goes to Dr.W.B.Davis, the first director of Dairy Research. Within a span of three or four decades since Dr.Davis book arrival, considerable research had been conducted at the National Dairy Research Institute and other places on indigenous dairy produces. Since then on the Dairy Industry had begun to grow at a rapid rate. There has been a tremendous efforts put in by the various organizations to assure good quality milk to the people and the saying of All that is white is pure milk came to existence. Providing proper infrastructurefacilities has increased the livestock population. Some efforts have been made the institutional farms. Such studies will to study a few breeds and result in some scientific taken up their genetic improvements through the selection mostly in information, which has been analyzed to these breeds and to develop the method for their genetic improvements. The increasing demands for foods of animals origin and other economic circumstances
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HASSAN MILK UNION Milk is rich in energy giving fats healthy giving vitamins body buildings proteins and bone forming minerals which help build muscles you need to throw ball or climb a tree. One 200 ml glass of milk provides a power pack of nutrients a child needs daily. This is how a glass Sl.No 1 2 of milk fulfills your daily Fat 4.6 6.6 requirements Protein 3.4 3.9 of nutrients Ash 0.7 0.8 in percentage terms. Species Cow Buffaloes Water 86.6 84.2 Lactose 4.9 5.2

Today India is the one of the global dairy industry. Karnataka milk federation which most populer as KMF, evolved itself as a premier and most profitable dairy It isesthablished Dairy all formers. in Organization to in the state of The coKarnataka. econamic district 1975 the implement the project. of

company grew itself fast and as it spreads wings of new fund rural activity. over state, agenesis operative body took the shape of KMF in 1983 entire the state 13 co-operative milk union dairy activity organization of dairy coof dairy co-operative, milk routes, processing of milk, operative milk union executive the various parameters of dairy activity organization distribution of milks it main stay. Background. Milk is a nutritive beverage obtained from various animals and consumed by humans. Most milk is obtained from cows, although milk from goats, water buffalo, and reindeer is also used in various parts of the world. In the United states, and in many industrialized countries, raw cows milk is processed before it is consumed. During processing the fat content of the milk is adjusted, various vitamins are added, and potentially harmful bacteria are killed. In addition to being cream, consumed as a beverage, milk is also used to make
SRI SIDDHARTHA INSTITUTE OF MANAGEMENT STUDIES , TUMKUR.

butter,

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HASSAN MILK UNION yogurt, cheese, and a variety of other products. HISTORY OF HAMUL The use of milk as a beverage probably began with the domestication anima1s. Goats and sheep were domesticated in the area now known as Iran and Afghanistan in about 9000 B.C., and by about 7000 B.C. cattle were being herded in what is now Turkey and parts in Africa. The method for making cheese from milk was known to the ancient Greeks and Romans, and the use of milk and milk products spread throughout Europe in the following centuries. One of the first glass milk bottles was patented in 1884 by Dr. Henry Thatcher, after seeing a milkman making deliveries from an open bucket into which a childs filthy rag doll had accidentally fallen. By 1889, his Thatchers Common Sense Milk Jar had become an industry standard. It was sealed with a waxed paper disc that was pressed into a life until the groove inside the bottles neck. The milk bottle, and the 1 950s, when waxed paper cartons of milk began regular morning arrival of the milkman, remained a part of American appearing in markets. In 1990, the annual production of milk in the United States was about 148 billion lb (67.5 billion kg). This is equivalent to about 17.2 billion U.S. gallons (65.1 billion liters). About 37% of this was consumed as fluid milk and cream, about 32% was converted into various cheeses, about 17% was made into butter, and about 8% was used to make ice cream and other frozen desserts. The remainder was sold as dry milk, canned milk, and other milk products. DAIRY INDUSTRY IN INDIA Dairy enterprise is an important occupation of farmer. In India near1y 70% of the people depend on agriculture. It is the
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HASSAN MILK UNION backbone of India. Dairy is linked with agriculture industry to a large extent Animal husbandry in India is an essential part of agriculture. It mainly a rural occupation closely associated with agriculture. is

DEVELOPMENT OF DAIRY INDUSTRY IN INDIA. During the Pre-independence year there was no serious stress given to dairy industry. In 1886 the Department of Defense of the British Government established the dairy farms for the supply of milk to the British troops in Allahabad. Later, in 1920 improve the milk production. There was discrimination done serious to the steps were taken by Mr. William Smith, an expert in dairy forming to Indians hence this led to the rise of the first milk union in India. In Lucknow in 1937 called the Lucknow milk producers Co-operative union Ltd. AMUL A situation prevailed in the case of milk about Pre In dependence; when to exploitation by middlemen had forced the milk producers to sell milk at throw prices. The answer to such a situation was found in developing a system that enables milk producers to own and operate not only their processing facility, but also the inputs, delivery machinery, and the marketing of finished products. The integrated approach first proved very successful in Kaira-the AMUL in and through the Operation Flood Programme, aimed to establish similar farmers organizations in 18 districts in the country. The Programme, when implemented did face some preliminary problems, but These were overcome, so much so that when the IBRD and World Bank came forward to finance dairy projects in Karnataka, Rajasthan and Madhya Pradesh. The results were that 12 milk producers these cooperative unions were established. Based on the success of

30 unions; bodies owned by the farmers themselves. The other phase of

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HASSAN MILK UNION dairy development and operation flood being implemented to bring total number of such district unions to 155, and million farmers. the of The success of can is these best owned is demonstrated implementing producers responsibility remunerative member enhancing the better therefore consumers aid to cities the build to prime on of that problems programs who an solved and not a cover if some the 30 unions have the 10

further agency by that by the the a its for for

operated only to

themselves, such

employ

the best

professionals

organization the rurally and

guarantee of input profit

market for

produced

commodity the

producers, hut production was to

also

guarantees

package back

(milk) largely

ploughs by not dairies was oil in

further development. Again, in the case of milk, since marketing of product price at the all controlled dairy milk enable was middlemen/trade/cattle a to the in position supply first to pay a was to the food used to to intervention milk time that keepers/etc., the organized the to required milk

producers. Market these and

reasonable pump of much

prices. This the large milk

skimmed

powder,

butter

this case-was in four them

modern

dairies

metropolitan through used supplies in the

(Calcutta, Bombay, Delhi and Madras), scale. The powder in the to were bodies dairy the brig sale up skimmed

and permit funds generated oil were sheds

demand

and butter milk

farmers World

organizations came

those

these metropolitan cities. Bank forward unions of finance dairy projects were Madhya Pradesh. The unions; phase to results by number that 12

Kamataka, Rajasthan and milk producers of being success flood these 30

cooperative other

established. Based on owned total development

the farmers and operation of such

themselves. The

implemented

district unions to 155, and cover some 10 million farmers.

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HASSAN MILK UNION The demonstrated implementing producers guarantee commodity package the since position milk time to that of profit success that the of its for of a further of these can is employ an market 30 best owned the for unions solved and best the is also the if have the further agency by the that to a only

problems programme who such

operated not rurally and

themselves, a by input for

professionals

the responsibility

organization producers, but in

remunerative member

produced

guarantees case was of not to

enhancing the better at

production (milk) was

ploughs back milk, by in a

development. Again, product price to

marketing to the pay was food

largely controlled

middlemen/trade/cattle keepers/etc., the organized dairy the milk intervention therefore required enable these aid skimmed milk powder, and

Producers. Market dairies was butter supply first this four permit were those the oil in

consumers

reasonable prices. This

case-was used to prime the pump of metropolitan them used to to The after the taken 1970 by he formation country, In to through the cities sale up and demand on of build dairy the of all much

the modern dairies in funds butter milk

(Calcutta, Bombay, Delhi and Madras), and large scale. The powder, and in the received year skimmed milk oil

generated

farmers Animal

organizations Husbandry five

sheds

supplies to these metropolitan cities. serious attention to thus the in the independence. There were lots many of progressive steps government National to 10 Dairy Bring states in 1974 through plans. This led 1965 & for this was on Development were selected an the integrated dairy Board in were

decided initially

a White Revolution

throughout

purpose launched

excluding Karnataka. Kamataka and project restructure reorganize industry Co-operative

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HASSAN MILK UNION principle of AMUL and to lay foundation for new direction in

dairy industry.

KARNATAKA The was dairy launched industry

MILK first in on

FEDERATION. dairy in Karnataka to was started and and to in Kudige in the

Kodagu district in 1955, further in June 1974; an integrated project Kamataka the restructure principle aided reorganize lay co-operative World Bank Karnataka small Body foundation was

for a new direction in dairy In 1975, the initiated. Development The present existence in 1984-as

development. dairy development Milk Federation (KMF) came into and Karnataka representing Milk Dairy

a result of merging of Karnataka Milk Dairy co-operatives in Karnataka dairy

Co-operation, is It is the apex

Production Development and loose vendors. KMF Cooperatives. To regional training plants are Refrigeration been the third largest co-operative at amongst and for

the dairy co-operatives in impart intitute set-up

the country. institutes nitrogen, Bangalore is used at to Mysore supply functioning. Three which nitrogen

training,

purpose. Three diagnostic centers have been set-up for

monitoring diseases. Objectives: Providing assured and remunerative market for all the milk produced by the farmer members.

Providing hygienic milk to urban consumers. To build village the level institutions in co-operative provision sector of to milk

manage

dairy

activities. To

ensure

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HASSAN MILK UNION production know-how. To facilitate rural development at village by level, providing opportunities migration for to self-employment urban areas, etc. FUNCTIONS OF KMF: Co-ordination of activities between the unions. Developing the markets for the increasing in milk production. To make the brand Nadine as a house hold name. Excellence in quality is to be maintained to lay a solid preventing inputs, processing facilities and dissemination of

foundation for wide Spread acceptance of Nadine products. To increase the market share of Nadine

UNITS OF KMF: KMF its control; Mother Dairy, Yelahanka, Bangalore. Nadine Milk Products, KMF Complex, Bangalore. Cattle Feed Plants at Rajanukunte/Gubbi/Dharward/Hassan. Nadine Sperm Station at Hessaraghatta Pouch Film Plant at MunnekolaluMarathhalli. Central Training Institute at KMF Complex, Bangalore Quality Control Lab at KMF Complex, Bangalore. KMF milk has 13 milk milk to unions the throughout the state which procure and from primary dairy cooperative societies (DCS) has the following Units functioning directly under

distribute

consumers

in various

towns/cities/rural

markets in Karnataka

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HASSAN MILK UNION

While the by KMF, both

marketing

of

all

the

milk

products the

is

organized and milk

within and

outside the state, all

milk

product are sold under a common brand name NANDINI|

CHAPTER-6 COMPANY POSITION IN THE MARKET

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HASSAN MILK UNION

PROFIT AND LOSS ACCOUNT FOR THE YEAR END 2011-2012 PRARTICULARS Salary & other benefits Administrative expenses Rent,Rates& Taxes Selling & Distribution expenses Interest and Bank charges P & I services Vehicle Repairs & maintenance Depreciation Provision for Bad &Doubtfulldepts Provision for taxiation Net profit TRFD TOTAL Gross profit TFRD from Trading account Other income Interest on loans & advances TOTAL 2010-2011 25789758.75 20049643.64 854372.00 35299686.92 1089602.89 9006954.88 2879059.00 19422241.70 10850000.00 25550334.54 36400334.54 2011-2012 26394685.71 11263848.73 798670.63 40467861.37 14403213.29 937448.01 14403213.29 3267023.22 2070.00 146837665.99 20366603.73 30270630.73

129913832.42 120241884.49 16957460.47 14904530.25

183271627.43 11691251.25 150791654.59 146837665.99

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HASSAN MILK UNION BALANCE SHEET FOR THE YEAR END 2011-2012 2010-2011 85668000.00 2354225.08 206830261.33 25550334.54 21918866.98 61165358.21 191870695.60 30580119.93 625937861.67 2011-2012 97212000.00 858291.37 247210800.56 20360603.73 18721214.00 53404008.07 483746086.59 40225247.04 961738251.36

PARTICULAR Share capital Share suspence Dep.& other funds Profit & Loss a/c Loans Grants & Subsidies Current liabilities Provisions TOTAL Assets Cash on hand Cash at bank Investment Fixed assets Current assets Loans & advances & Deposits Sundry debtors Audit objectives Stock on hand Profits & loss a/c TOTAL

97132.10 77903046.97 99419304.33 271992304.92 124881275.67 15210474.31 670350.02 35763973.35 _ 625937861.67

160085.00 40694943.25 192532859.00 339054546.76 142511715.65 26250.00 29136783.54 362737.97 217334330.20

961814251.37

The karnataka milk fedration having a brand of NANDINI. The KMF having the the market share is according to company balance sheet and
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HASSAN MILK UNION company records is 85% in the market and the NANDINI products are top position in the market.

CHAPTER-7 CORPORATE SOCIAL RESPONSIBILITIES ACTIVITIE OF HASSAN MILK UNION: A. Organization of Dairy Co-Operative Societies : As at the end of July- 2012, 1332 societies have been registered of which 1252 are functional. Out of functional societies 449 are women societies 199 step women societies which are functioning to enhance the
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HASSAN MILK UNION social and economical condition of women. B. Membership Enrolment : As on 31st July 2012, 189417 members have been enrolled. Out of the total 76289 are small farmers, 54889 are marginal farmers, 24443 are agriculture labors and 33796 are other big farmers, 13010 belongs to SC members, 4619 belongs to ST members. 70801 members are women. C. Milk Procurement Activities: The present average milk procurement from 1252 milk societies is around 619977 kgs/day. During the month of July-12 the average procurement /DCS/day is 495 kgs and the average transportation cost per kg of milk procurement is 32 paisa. The average fat is 4.05% and average SNF is 8.50 %. Input Activities : a. Veterinary Facility : It is covering all societies and giving veterinary facility. b. Artificial Insemination : To improve the breeding facility there are 18 single AI centers and 91 Cluster AI centers working in the union area. These centers covered around 84% of the DCS. An average of 30,000 inseminations is carrying out every month. 4200 male cows and 4300 female total 8500 cross breed cows have been born during July-2012. c. Feeds and Fodder : The union is guiding the farmers and the producers at the village level in growing moderninised fodder. Ex. union is supplying C01, C02 and naepier roots and SSG seeds, cow pea seeds and seasonal seeds to the producers.
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HASSAN MILK UNION The union is also arranging straw treatment demonstration. The union is supplying around 4000 metric tones of cattle feeds and an average 15000 kgs of mineral mixtures to the society members. Nearly 98% of the functional societies have been covered under cattle feed sales. d. Training facilities : Training will be given to the milk society secretaries, testers and management committee members. DAM (dairy animal management) is given to the producers. This training is given in central training institutes, Mysore owned and managed by KMF Bangalore. Other programmes : a. Step programme : Under this, women members have been enlightened with education, nutrition, legal matters. SHG (self help group) the main purpose of step programme is to provide better socio-economic status to the women members b. Yashashwini health programme : Under this scheme, those who have become members of this scheme will get medical benefits like operation charges. c. Total quality management (TQM) : The union is encouraging clean milk production programme at village There level. are 19 The union bulk milk has obtained ISO 108 9001:2000 automatic certifications. milk collection coolers and

centers which are functioning in the milk societies.

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HASSAN MILK UNION

CHAPTER-8 FUTURE PROSPECTS FOR THE COMPANY COMPETITION: The Nandini milk is facing lot of competition in the market the prime competitors areprivate players like, Krishna.
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(Competitive Edge )

HASSAN MILK UNION Arogya. Spurti. 1. INCREASING THE AVAILABILTY OF NANDINI MILK AND

PRODUCTS THROUGH OUT DAY IN THE MARKET: a) By expanding the retail market in the union area.

1) Identifying the uncoverd areas of distribution and appointing new retailers in such areas to expand the local market. 2) Introduction of Adhoc day route exclusively for Milk products distribution in the union area. 3) Opening of 4 new Nandini Milk parlour at Alur,Somvarpet,Arakalgud. 4) OpeningofNandini Milk parlour at Birur Railway Station.

b) Strengthening counters: Particulers Milk parlours Day counters Depots Retailers Hassan 17 1 4 201

of existing Milk parlours,Depots and Day C.K.M 3 3 4 179 Coorg 5 5 4 275 Total 25 09 12 655

There are totally 655 retailers,25 milk parlours,09-day counters and 12 depots operating in the union area. It is decided to stengthen these existing outlets through building up of cold chain facilities by providing Bottle coolers to retailers at the rate of 50% cost and free supply of insulated boxes and

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HASSAN MILK UNION introduction of insulated Transport vehicles to the door step of retailers and extended hours of milk supply . 2. ENHANCING To persuade EFFECTIVENESS OF CONSUMER AWARENESS milk, or

PROGRAMMES consumers,who are purchasing loose Competitors milk,to purchase Nandini milk.This objective is most suitable for our Union since their market share is less To create awareness among existing and prospective consumers about:a) The Organization.(HCMPSULtd). b) The Quality products and Services available. c) Dairy plant activities-hygienic milk handaling practices of Nandini Vis a Vis loose milk. d) Health hazards of consummingadultered milk. e) Quality and hygienic aspects of sachet milk and milk products. f) Dairy visit by School children, consumers and mahilamandals. g) Education Programmes on Milk and Health at schools and public places. h) Organization Milk testing programmes at public places. 3. CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY PROBLEMS: A core team constituting of officers from plant, quality Solving the problems control,marketing have been formed to implement the strategies of SMP for implementation.This team would sit every day for 15 minutes with Manager (dairy) and thrash out problems faced by the marketing staff Problems noticed and actions intiated are to be recorded every day. And appraise the M.D and conduct review meeting once in a month.

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HASSAN MILK UNION 4. SALES PROMOTION ACTIVITIES: Sales promotion is a marketing activity that provide extra value or incentive to sales force, distributors,and the ultimate consumers and can stimulate immediate sales. (a) Group Insurance and is continued till 2014: The proposal of providing Group Insurance facility to retailers which is in existence and is continued during 2012-13 also.

(b) Brand Advertisement,Hoardings flex adds,Insulated Vehicle and Wall paintings, Radio programmes, T.V ads, and Awareness programmes will be continued during 2012-13 also. (c) Supplying posters, Flex Boards, Glow sign Boards, Tarpaulin bags to Retailers and organizing retailers tour progamme, Training programmes etc.. (d) Providing Bottle coolers and stabalizers at 50% Subsidy to the retailers who have increased the Sales at least by 20% compared to previous years sales. 5. MOTIVATING THE CHANNEL MEMBERS. A system to motivate and educate the channel members has been pn posed for increasing the sales. A systematic awareness campaign would be organized and all :he Nadine retailers will be contacted. This is planned by meeting them regularly and invitng suggestion/feedback from them on a regular basis. Retailer meeting will be conducted nce in six months. The confidence of retailer to be obtained by service and by attending to their routine problems. Rewarding the best performing retailers and his delivery
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HASSAN MILK UNION boy for promote service is planned. Channel member will be oriented with educational tours to the neigiboring unions training programmesso as to acquaint with market devel. 6.ELISTING CONSUMERS FEED BACK FOR QUALITY ASSURANCE. By preparing a set of questionnaire and during the feed back from th customers. Will get as information about customers perception on Nadine milk and milk pr ducts, quality packing and pricing etc. By doing this we will get the results from the customers in case if the -e are any problem we can rectify ,we can do this by pulling few question to the customers a king about the quality pries shelf life packing satisfaction etc. and also get the feed back a ab )ut competitors brands in the market. 7. CREATION OF GRIEVANCE REDRESSED CELL: Since the market forces are driven by the milk union would initiate focusing towards customer needs. In this direction, the over period following customers of Nandind to privilege by the kind of service provided to them. Focus on consumer orientation could be established of time. This system to be implemented with the activities. A Separate telephone line to the marketing, section of Hassan help

and kudige dairy would be provided for benefiting channel members. Further, the telephone no contact persons name to be published the leading local dairy news papers and circulated to all retailers day couters, depose parlors and govt institution. 1. The complaints for to be milk addressed and milk immediately products and would would be be

rectified with in 24 hours. 2. Timing placing indent increased.(5.30pm to 8 am)

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HASSAN MILK UNION If any complaint regarding quality and quantity is received, the action

to be taken by the mark / plants section. These sections have for to be given certain delegation powers for accepting spoiled milk, leakage milk due to machinery problems and any other consumers complaint by attending them through systematic approach same for MD approval. Any product brought by either marketing field staff or any team members or any retailers for any manufacturing defects the compliments needs to be addressed immediately. Practice of running between security, marketing department plant abd quality department as to be avoided. A system of regresting the complaints and security to acknowledge the product which can be checked by quality department and upon gunnies, the product as to be replaced at spot or is least by next day. Each full staff (marketing) opening in there areas should bring at least 1 milk sachet sample of all brands from the field once in a month dairy and them checked for quality specification. The action taken should be informed to the concerned retailers should be discuss will in time writing. And this quality check with the retailers should be discussed in the regular marketing section marketing. 8. CONSTITUTING EFFECTIVE REPLACEMENT / LEAKAGE POLICY. Though there are no foolproof methods to solve this problem seniors effort have to be made which should be important by and large should be acceptable to all the channel members. It is very true that the monitory loss suffered by the retailers managing the Leakey packet is quick high as compared to the margins they get from selling a pocket of milk. It is also very difficult to avoided leakage and recording the

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HASSAN MILK UNION since the distribution is to be made through bad roads others

inconvenience circumstances. However a systematic approach should be applied to the leakage problem at the union level to ensure the milk pouches delivered at the dairy dock at the leading time are not leaky and soundly packed. This would be possible by implementing strict quality parameters at the packing operation. There should be a proper monitoring mechanism at the cold store and level during dispatch to ensure the supply of unleakly pouches to the market. The following measures are planned to over come the leaky problem. Film quality testing programs. Focus on discussion. Proper maintenance and maintaining of packing machine. Storing and required temperature before dispatch. Talking proper care during transport to avoided damage. Replacement of old cards. HCMPSULtd ACTION PLAN FOR THE YEAR 2012-13 PRESENT SCENARIO S.NO 1 2 PARTICULARS HASSAN Population Estimated Demand in LPD 3 Projected of milk 4 Present sale of 42340 milk LPD(2011-11)
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CKM 383049 83667

COORG 317933 95380

TOTAL 1147948 268440

446966 89393

sale 50794

46197

53304

150295

38477

44405

125222

in

HASSAN MILK UNION 5 Loose milk sale 17879 in LPD 6 Competitor milk LPD 7 Market share 47.36 45.99 46.56 46.64 sales in 3950 4000 1900 9650 10648 9538 38065

of Nandini milk 8 Market milk 9 Market share 20.0 12.7 10.0 14.18 share 4.42 4.78 1.99 3.59

of competitors

of Loose milk Balance share is Considered as Utilisation for Self Consumption. Note: 1. Population figures as per the year 2001 census (urban) and annual projection.on decinnial growth percentage. 2. Percapita consumption of milk:a) Hassan district b) Chikkamagalur district: Chikkamagalur,Kadur,andTarikere : 200ml/da Shingeri,Koppa,mudigere and N.R.pura c) Coorg district : 250ml/day : 300ml/day : 200ml/day

PRODUCTION ASPECTES OF THE HAMUL

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HASSAN MILK UNION STRUCTURE OF THE PRODUCTION DEPARTMENT

In the organization the production department is the key for all activities.The main raw material is milk which is procured as staked
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Input wing

Technical

Assistant

Manager

Manager

Clerks

Deputy

MANAGER(P&L) Helppers Procurement Manager Extension Assistant Manager Deputy Officer Clerks Wing

HASSAN MILK UNION earlier. Every day it is planned for the disposal of incoming raw milk

as per the availability and indent from the consumers. Production is the conversion of raw material into finished product. AMUL production department is well planned and adequately equipped In quality of manufacturing set up where the entire necessary the good infrastructure is available. AMUL the raw milk is processed to from the processing, the milk is milk. During differentiated

depending on the contract of FAT and SNF. (Solid not fat). PROCESS Once pumped into milk the milk is accepted the milk is chill to 4 c and a bulk check is done and the milk as silos

processed as per the need. Here pasteurization is done by heating the milk to 72 c maintain that temperature for 15 seconds and chilled 4 c. this is called as pasteurization. Once the pasteurization is done the milk is sent for retail packing of 500 ml, 1000ml sachets. This is sachets or crated of (packed) in 12 ltr plastic crates and in the cold at 4 TEST Temperature Clot on Boiling Acidity Test REASON Be below 4 degree. If mill curdles the soon of after billing milk is

rejected. To test

extent

acidity.(Which

milk

having 0.13 1.17 percent of acidity that is good milk).

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HASSAN MILK UNION Alcohol Test Lactometer Fat Test SNF Test To check the heat stability of milk. To check the density of milk. Percentage of fat determined. Percentage of SNF determined for pricing. SNF=CLR+FAT/4+0.35(consent)

Districts and also to other dairies in the state and outside. Dairies & Processing unit Hassan Kudige in Coorg District Capacities 1.2 Lakh lters/day Lakh liters/day) 50,000 liters/day

1. 2.

(Expand upto 3

SL.NO 1. 2. 3.

Chilling Centers Capacities Birur in Chikkamagalore 20,000 liters/day District Holenarsipura in Hassan District Channarayappttana 100000 liters/day 1,00,000 liters/day

Hassan

milk

union

is

carrying

business

of

producing

and

marketing milk and milk products, such as peda, curd, ghee, Butter milk. Hassan milk union procuring milk from rural areas and providing input activities to dairy co-operative societies like artificial insemination, supply cattle feed, animal health care programs for the uplifment producers. of the

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HASSAN MILK UNION INFORMATION ABOUT DAIRY CENTERS: S.N O PLACE INSTALLED CAPACITY liters/day 1 2 3 Hassan Dairy Kudige Dairy Holenashipura Chilling centre 4 Birur centre 5 Channarayapatta 1,00,000 na centre Chilling 1,32,903 132.90 Chilling 20,000 57,516 287.58 1,20,000 50,000 1,00,000 CAPACITY UTILIZATION litres/day 2,94,098 35,325 1,05,128 PERCENTAGE OF CAPACITY UTILIZATION[%] 245.08 70.65 105.12

STORAGE OF MILK:

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HASSAN MILK UNION S.NO YEAR AVERAGE DAILY STORAGE OF MILK [in kgs] COMPARE TO LAST YEAR PERCENTAGE INCREASE [%] 1 2 3 4 5 6 2007-08 2008-09 2009-09 2009-10 2010-11 2011-12 2,68,417 3,33,718 3,86,462 4,02,067 4,76,771 5,98,245 11.61 24.32 15.80 4.03 18.58 25.48 OF

SALE OF MILK:

S.NO

YEAR

AVERAGE SALE OF MILK

DAILY COMPARE

TO

LAST

YEAR

PERCENTAGE OF INCREASE [%]

1 2 3 4 5 6

2007-08 2008-09 2009-10 2010-11 2011-12

90,186 95,589 1,09,578 1,14,879 1,25,197

14.65 7.09 13.45 4.83 8.98 5.51

2012-13[up to 32,095 jan]

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HASSAN MILK UNION

Learning Experience

During theories,

the course of study and practice of

the

application

of managerial with different

theories in to practice has been understood. It helped to link the techniques management activities of the organization. HASSAN MILK UNION. Has a wide range of products, this plant is dealing with milk product. During systematic layout the of period the the Production was process learnt. The and plant the is machineries

systematically designed

so that the production process is carried out

without any security are systematically arranged. in the in that its a memorable movement. COMPANY AT GLANCE: Name : HAMUL. 4th June 1975. Day/ R.C.S/ 3657/ 76-77 Date-30/3/1977 Karnataka milk federation (KMF) KMF hassan

Establishment year : Date of registration : Registered office dairy circle, hassan Area of operation Location : : :

Hassan, Kodagu, Chikkamagalur.

NH48, Industrial area, B.M.Road, Hassan. : Agents, Wholesalres, Local consumers.

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Customers

SRI SIDDHARTHA INSTITUTE OF MANAGEMENT STUDIES , TUMKUR.

HASSAN MILK UNION Main dealings Suppliers : Milk and Milk products.

: Members andnon members of milk products, coOperative Societies.

Area coverd Brand name

27 acres.

:NANDINI:

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HASSAN MILK UNION

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HASSAN MILK UNION

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HASSAN MILK UNION

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HASSAN MILK UNION

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HASSAN MILK UNION

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HASSAN MILK UNION

BIBILIOGRAPHY

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HASSAN MILK UNION

1. Books

UPENDRA KACHRU (2007).Production andopetation management. Publisher: ANURAG JAIN FOR EXCEL BOOKS.

S.K.BHATIA(2006) Human resources management. Publisher: DEEP ANDDEEP PUBLICATION PVT.LTD.

2.Website. www.google.com www.kmfnandini.com

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