In Plant Training

Inplant Training-MYMUL
ADVANCED MANAGEMENT COLLEGE BENGALURU - 560083

1

EXECUTIVE SUMMARY
This project report is the result of the study of Organization study done by me
for Mysore Milk Union Ltd. M!MUL".
M!MUL is affiliated to #arnataka milk federation. $t is a cooperati%e union aiming to
pro%ide organization needs to re%italize its acti%ities to stand on its legs and to reduce its
dependence on outside sources of finance and other needs.
The main objecti%e of this research is to study the Organizational acti%ities in &andini
milk and milk products to identify the problem to suggest rele%ant solution to impro%e
upon them.
'or preparing this report $ (ent to the organization i.e. M!MUL in Mysore city. To study
the e)isting conditions analyse the different factors affecting %iability of the union and to
identify the problem.
The methodology adopted by me (as the research design is *+escripti%e research,. The
media $ used for collecting the information is through -uestionnaire and the method of
inter%ie( (as personal contact in the organization.
$n this co operati%e company facing some of specific managerial problems. Like.
&O +$/0OU&T /012M2
&O '2/T$34L O''25
L40# O' 4+325T$/2M2&T
T1252 $/ &O 6L4& 'O5 2764&/$O&

2

GENERAL INTRODUCTION
Mysore Milk Union (MYMUL) is a co-operative Milk Union fully owned and
managed by milk producers of Mysore and !amara"anagar districts of #arnataka $tate%
$ince its inception 1&'() t!e union is constantly striving to furt!er t!e dairy development
and marketing activities in its milk s!ed area%
Importance of Milk:
Milk is nature*s ideal food for infants and growing c!ildren% +!e importance of milk in
our diet !as been recogni,ed since -edic times) and all modern researc! !as only
supported and reinforced t!is view% .n fact) milk is now considered not only desirable but
essential from t!e time t!e c!ild is born% +!e baby is recommended to be breast-fed until
it is weaned and t!ereafter given cow/buffalo/goat/s!eep or similar domesticated
mammal*s milk till !e or s!e reac!es 12 years of age%
Milk is an almost ideal food% .t !as !ig! nutritive value% .t supplies body building
proteins) bone-forming minerals and !ealt!-giving vitamins and furnis!es energy-giving
lactose and milk fat% 0esides supplying certain essential fatty acids) it contains t!e above
nutrients in an easily digestible and assailable form% 1ll t!ese properties make milk an
important food for pregnant mot!ers) growing c!ildren) adolescents) adults) invalids)
convalescents and patients alike%
+!e 2ational .nstitute of 2utrition !as recommended a minimum of 344 g daily intake of
milk for c!ildren between 1-3 years of age and 254 g for t!ose between 14-12 years) if
t!ey are vegetarian) and 254 g and 244 g for t!e same age groups of non-vegetarian
c!ildren% .n our country) most suc! adults consume milk only as w!iteners for tea and
coffee) some da!i or buttermilk%

3

6

OVERVIEW OF INDIAN DAIRY INDUSTRY
Milk production is important in .ndia) as milk is one of t!e main sources of
protein and calcium for a large vegetarian population% 7airying provides a liveli!ood for
more t!an (2 million .ndian farmers as well as an additional income for a large number of
rural families% .t is also a means for women to participate in t!e economic activities in t!e
rural areas% .n 1&&& .ndia became t!e largest producer of milk primarily due to t!e efforts
of t!e co-operative movement initiated by t!e 2ational 7airy 7evelopment 0oard
(2770)% urrently) t!ere are (4)444 villages* co-operative societies t!at is spread over
244 districts of 22 states% 8ac! state !as t!eir separate co-operative dairy federations and
eac! district !ave t!eir own district milk producers union%
+otal cattle population in .ndia stood 313 million on 9ctober 2444) w!ic! counts as t!e
largest population of cattle in t!e world% Most of t!e cattle !ere are milk cows and milk
buffaloes% +!e milk production in .ndia accounts for more t!an 13: of t!e total world
output and 5(:of t!e total 1sia*s production% +!e top five milk producing nation is;
.ndia) U$1) <ussia) =ermany and >rance%
.ndian dairy industry is e?panding in an ama,ing pace wit! a lot of opportunities a!ead%
+oday .ndia is one of t!e top most milk producing nation wit! least cost% $o) it !as got an
advantage of its low cost and !ig! milk production in t!e country% 0esides t!at) t!e urban
market for milk and milk products is rising at w!ooping 33: per annum%

5

INDUSTRY PROFILE
Dairying prior to operation flood:
+!e earliest attempts of dairy development can be traced back to 0ritis! rule)
w!en t!e 7efence 7epartment establis!ed military dairy farms to ensure t!e supply of
milk and butter to t!e colonial army% +!e first of t!ese farms was set up in 1lla!abad in
1&13@ subseAuent facilities were establis!ed at 0angalore) 9otacamund and #arnal% +!ese
farms were well maintained% 1s animals were reared under farm conditions) some !erd
improvement was made using artificial insemination% +!is approac! did not !ave any
impact on t!e supply of milk to urban consumers) w!ic! was of ma"or concern to civilian
aut!orities but less important to t!e military% Bit! t!e growt! of t!e population in urban
areas) consumers !ad to depend on milk vendors w!o kept cattle in t!ese areas and sold
milk) often door-to-door% 1s a result several cattle s!eds came into e?istence in different
cities%
+o some e?tent) t!e $econd Borld Bar gave impetus to private dairies wit! modestly
moderni,ed processing facilities% .n t!e cities like 0ombay) alcutta) Madras) and 7el!i
and in some large towns!ips) processed milk) table butter and ice-cream were available%
Colson*s) #elventers and t!e 8?press 7airy were some of t!e pioneer urban processing
dairies% +!ese dairies were not concerned wit! improving t!e breed of milk animals but
were content wit! contracting milk supplies t!roug! middlemen or t!eir own staff% Milk
producers as well as consumers were e?ploited to a large e?tent% 7espite moderni,ed
processing facilities) dairying remained unorgani,ed%
Bit! t!e initiation of .ndia*s first five-year plan in 1&51) modernisation of t!e dairy
industry became a priority of t!e government% +!e goal was to provide !ygienic milk to
t!e country*s growing urban population% .nitial government action in t!is regard consisted
of organi,ing Dmilk sc!emesE in large cities% +o stimulate milk production) t!e
government implemented t!e .ntegrated attle 7evelopment Cro"ect (.7C) and t!e #ey
-illage $c!eme (#-$)) among ot!er similar programmes% .n t!e absence of a stable and
remunerative market for milk producers) !owever) milk production remained more or less
stagnant%

F

7uring t!e 1&F4s) various state governments tried out different strategies to
develop dairying) including establis!ing dairies run by t!eir own departments) setting up
cattle colonies in urban areas and organi,ing milk sc!emes% 1lmost invariably) dairy
processing plants were built in cities rat!er t!an in t!e milk s!eds w!ere milk was
produced% +!is urban orientation to milk production led to t!e establis!ment of cattle
colonies in 0ombay) alcutta and madras% +!ese government pro"ects !ad e?treme
difficulties in organi,ing rural Milk procurement and running milk sc!emes
economically) yet none concentrated on creating an organi,ed system for procurement of
milk) w!ic! was left to contractors and middlemen% Milk*s peris!able nature and relative
scarcity gave t!e milk vendors leverage) w!ic! t!ey used to considerable advantage% +!is
left government-run dairy plants to use large Auantities of relatively c!eap) commercially
imported milk powder%
1ll t!ese factors combined left .ndian dairying in a most unsatisfactory low-level
eAuilibrium% +!e establis!ment and prevalence of cattle colonies emerged as a curse for
dairying in t!e rural !interland as it resulted in a ma"or genetic drain on t!e rural milk
animal population) w!ic! would never be replaced% ity dairy colonies also contributed to
environmental degradation) w!ile t!e rural producer saw little reason to increase
production%
Operation flood:
+!e strategy for organi,ed dairy development in .ndia was actually conceived in t!e late
1&F4s) wit!in a few years after t!e 2ational 7airy 7evelopment 0oard (2770) was
founded in 1&F5% .t rested on t!e 9peration >lood programme) w!ic! was conceived by
t!e 2770 and endorsed by t!e government% 9peration >lood is a uniAue approac! to
dairy development% 7uring t!e 1&(4s) dairy commodity surpluses were building up in
8urope% +!e c!airman of 2770 saw t!ose surpluses as bot! a t!reat and an opportunity%
+!e t!reat was massive e?ports of low-cost dairy products to .ndia) w!ic! !ad it occurred)
would !ave told t!e deat!-knell for .ndia*s staggering dairy industry% +!e large Auantities
t!at .ndia was already importing !ad eroded domestic markets to t!e point w!ere dairying
was not viable% +!e opportunity) on t!e ot!er !and) was built into t!e 9peration >lood

(

strategy% 7esigned basically as a marketing pro"ect) 9peration >lood recogni,ed t!e
potential of t!e 8uropean surpluses as an investment in t!e moderni,ation of .ndia*s dairy
industry% Bit! t!e assistance of t!e Borld >ood Crogramme) food aid in t!e form of milk
powder and butter oil was obtained from t!e countries of t!e 8uropean 8conomic
ommunity (88) to finance t!e programme%
9peration >lood is a programme designed to develop dairying by replicating t!e 1nand
Model for dairy development) w!ic! !as stood t!e test of time for almost !alf a century%
+!e first p!ase of 9peration >lood was launc!ed in 1&(4 following an agreement wit! t!e
Borld >ood Crogramme) w!ic! undertook to provide as aid 12F444 tonnes of skim milk
powder and 62444 tonnes of butter oil to finance t!e programme%
+!e programme involved organi,ing dairy co-operatives at t!e village level@ creating t!e
p!ysical and institutional infrastructure for milk procurement) processing) marketing and
production en!ancement services at t!e union level@ and establis!ing dairies in .ndia*s
ma"or metropolitan centres% +!e main t!rust was to set up dairy co-operatives in .ndia*s
best milk s!eds) linking t!em wit! t!e four main cities of 0ombay) alcutta) 7el!i and
Madras) in w!ic! a commanding s!are of t!e milk market was to be captured% .n
ac!ieving t!at goal) t!e first p!ase of 9peration >lood laid t!e foundation for .ndia*s
modern dairy industry) an industry t!at would ultimately meet t!e country*s need for milk
and milk products%
+!e second p!ase of t!e programme was implemented between 1&'1 and 1&'5% 7esigned
to build on t!e foundation laid in t!e first p!ase) it integrated t!e .ndian 7airy
1ssociation-assisted dairy development pro"ects being implemented in some .ndian states
into t!e overall programme%+!e current t!ird p!ase of 9peration >lood aims at ensuring
t!at t!e co-operative institutions become self-sustaining% +!e programme envisages
substantial e?pansion of t!e dairy processing and t!e marketing facilities@ an e?tended
milk procurement infrastructure@ increased outreac! of production en!ancement activities
and professionali,ation of management in t!e dairy institutions%

'

National Dairy Development Board (NDDB)
2ational 7airy 7evelopment 0oard was establis!ed in 1&F5 under t!e $ocieties
<egistration 1ct) t!e !aritable +rust 1ct and t!e Cublic +rust 1ct) to fill t!e vacuum of
national-level organi,ation to replicate 1nand Model dairy co-operatives t!roug!out t!e
country and to make available multidisciplinary) professional dairy e?pertise to dairies in
t!e public and co-operative sectors% 7uring its initial stages) 2770 was assisted
financially by t!e =overnment of .ndia) t!e 7anis! =overnment and by 1MUL% .t also
received aid from t!e United 2ations !ildren*s >und(U2.8>) in t!e form of teac!ing
material and eAuipment%
.n 1&F&) w!en t!e =overnment of .ndia approved t!e 9peration >lood programme and its
financing t!roug! t!e moneti,ation of Borld >ood Crogramme-gifted commodities) it
was found t!at t!e statutes under w!ic! 2770 was registered did not provide for
!andling of government funds% +!erefore) in 1&(4 t!e government establis!ed a public-
sector company) t!e .ndian 7airy orporation% +!e .7 was given responsibility for
receiving t!e pro"ect*s donated commodities@ testing t!eir Auality@ t!eir storage and
transfer to user dairies and receiving t!e dairy payments% +!us it served as finance-cum-
promotion entity w!ile t!e entire 9peration >lood tec!nical support was provided by
2770% +o avoid any duplication in t!eir activities or overlap of functions) t!e .7 and
2770 were eventually merged into a newly constituted 2770 by an 1ct of Carliament
passed in 9ctober 1&'(
KARNATAKA MILK FEDERATION
#arnataka Milk >ederation (#M>) was instituted in 1&'6) by federating t!e 13 milk
unions in t!e state and t!us forming t!e state level ape? organi,ation% 1s a co-operative
ape? body of t!e state of #arnataka) it represents dairy farmers* organi,ation and also
implements dairy development activities to ac!ieve t!e following ob"ectives;-
Crovides assured and remunerative market for t!e milk produced by t!e farmer
members%
Crovide Auality milk to urban consumers%

&

+o build village level institutions in co-operative sectors to manage t!e dairy
activities%
+o ensure provision of milk production inputs) processing facilities and
dissemination of know-!ow%
+o facilitate rural development by providing opportunities for self employment at
village level) preventing migration to urban areas) introducing cas! economy and
opportunity for steady income%
List of co-operative milk producers under Karnataka Milk Federation:

14

COMPANY PROFILE
MY$9<8 71.<Y) a unit of Mysore G !amara"anagar 7istrict o-9perative
milk producers Union Limited (MYMUL) registered under #arnataka co-operative act
!as been commissioned in t!e year 1&(F% .t is fully owned and managed by Mysore and
!amra"anagar districts of #arnataka state%
+!e p!ilosop!y of t!is co-operative milk producer*s organisation is to eliminate
middlemen and organi,e institutions owned and managed by milk producers) by
employing professionals% 1c!ieve economies of scale of rural milk producers by ensuring
ma?imum returns and at t!e same time providing w!olesome milk at responsible price to
urban consumers% Ultimately) t!e comple? network of co-operative organisation s!ould
build a strong bridge between masses of rural producers and millions of urban consumers
and ac!ieve a socio-economic revolution in t!e village community%
Background and inception of the company
Under t!e Borld 0ank aided #arnataka 7airy 7evelopment Cro"ects) t!e
activities on 7airy 7evelopment were taken up in t!e year 1&(5% The Mysore Coop
Milk Producers Societies Union Ltd was establis!ed on 23%11%1&(F) !aving t!e
"urisdiction e?tended to t!e entire Mysore 7istrict and >ive +aluks of Mandya 7istrict%
+!e Union undertook t!e work of organi,ation of Milk o-operatives in HAMUL

11

Pattern* wit! t!e main ob"ective of socio-economic reformation of t!e farmers in t!e
rural areas t!roug! 7airying as main subsidiary occupation%
Later t!e Union was bifurcated into Mysore and Mandya 7istrict o-9perative Milk
Croducers $ocieties Union Ltd from 41%46%1&'(% onseAuent to t!e bifurcation of
Mysore 7istrict into Mysore and !amara"anagar 7istricts) t!is Union is renamed as
Mysore-Chamarajanagar District Coop Milk Producers Societies Union Ltd.
Main functions of this union:
+o provide remunerative market for t!e milk produced by t!e rural farmers
t!roug!out t!e year irrespective of t!e Auantity supplied by t!em%
>irst 1id facility at t!e $ociety level%
8mergency visits to treat t!e animals on a nominal fee to be collected from t!e
producer%
ross breeding facility t!roug! 1rtificial .nsemination service%
$upply of balanced attle >eed to t!e farmers of t!e oop $ocieties at subsidi,ed
rates%
+ec!nical guidance and supply of root slips/seeds for >odder cultivation by t!e
members of t!e oop $ocieties
8ffective supervision/e?tension services t!roug! field e?ecutives of t!e Union%
Intensve Co-Operatve educaton programmes to the women members
of the Dary Coop Socetes through Coop Deveopment Programme.
Mysore Dairy wit! t!e capacity of 14 +LC7 was started in t!e year 1&F5 under t!e
control of t!e 7epartment of 1nimal Iusbandry and -eterinary $ervices of #arnataka

12

$tate) w!ic! was transferred to #arnataka 7airy 7evelopment orporation in t!e year
1&(6% +!e capacity was e?panded to F4 +LC7 in 1&'4 and transferred to t!e #arnataka
Milk >ederation in 1&'6% +!e capacity was e?panded to 144 +LC7 under t!e 9peration
>lood .. and furt!er e?panded to 154 +LC7 under 9> ... Crogramme% 1s per t!e
=overnment policy t!e 7airy and its !illing entres were !anded over to MYMUL on
41%4F%1&'(

MYSORE DAIRY, complex facts at a Glance.
1.General
1rea of t!e 7airy ; 14%22 acres
Iandling capacity ; 3) (5)444 LC7
8stimated cost of 0uilding ; 2%'& crores
2umber of employees ; 3('
2 %Milk procurement
7airy co-operative societies functioning ; &64
7airy societies registered ; 144&
Crocurement routes ; (1
!illing centres ; 3
7istricts covered ; 2

13

+aluks covered ; 11
-illages covered ; 2445
3%Milk Distribution
7istribution routes ; 3F
7istricts covered ; 2
$elling agents in urban ; 3(F
$elling agents in rural ; 2F4
Milk parlours ; 55

The Area of Operation
Mysore District T Narasipura Tq
Nanjanagudu Tq
H D Kote Tq
Hunsure Tq
Piriapatana Tq
K R Nagar Tq
Chamarajanagar District Charajanagara Tq
Gundlupete Tq

16

MYMUL not only operates in Mysore districts) but) also operates in some parts of
!amara"anagar 7istrict% .t operates 542 distribution centres) concerning all t!e agents
besides) t!ere are 2 milk parlour maintained by t!e dairy%
INFRASTRUCTURAL FACILITIES

15

MILESTONES:
1&55; >irst 7airy in #arnataka at #udige%
1&F5; =ovt% 7airy) Mysore started wit! 14 +LC7 capacities%
1&(6; #arnataka 7airy 7evelopment orporation born%
1&(5; Crimary 7airy oop $ocieties commissioned%
1&(5; =ovt% 7airies transferred to #77%
1&(F; Mysore oop Milk Croducers $ocieties Union started%
1&'4; Crocessing capacity of Mysore 7airy e?panded to F4 +LC7%
1&'3; orporate brand name H2127.2.* came into effect%
1&'6; 9peration >lood ll started%

1F

1&'6; #77 transformed to #M>%
1&'(; 0ifurcation of Mysore Union into Mysore J Mandya 7istrict Unions%
1&'(; 9peration >lood lll implementation started%
1&''; 2ewly e?panded F4 +LC7 capacities at !amra"anagar%
1&''; +raining centre) Mysore !anded over to MYMUL%
1&&3; luster 1. centres started in MYMUL and first time in #arnataka%
1&&3; .0C prepared at MYMUL for t!e first time in #arnataka%
1&&'; #ollegala !illing entre commissioned%
1&&'; 14 +L capacities LiAuid 2itrogen $torage +ank erected%
1&&&; H2127.2. $1L8$ 78C9+* started at !amara"anagar%
1&&&; Clanted trees in 14 acres land under forestry%
1&&&; >irst place at national level in construction of $mokeless 9vens%
2441; Croduction of Mysore Cak started%
2442; 1dopted HMnemonic $ymbol* t!roug! 2770%
2443; <eleased >ull ream Milk in 544 ml and +oned Milk in 254 ml packets%
2446; 3 numbers eac! 0M*s started in =undlupete and #< 2agar taluks%
2446; MYMUL <ait!a #alyana +rust started%

1(

2445; .$9 &441-2444 ertification obtained t!roug! +U- <!einland%
2445; >or t!e first time received t!e national award for 8nergy onservation 1ward
from 7r% 1%C%K% 1bdul #alam%
244F; <eleased g!ee to market in 54 ml) 144 ml packets%
244F; =!ee sales in pet "ars at #erala started%
244F; 1n 1uditorium at !amara"anagar is inaugurated and named as
7r%<a"kumar%
244(; Crestigious .$9 &441-2444 ertificate is renewed%
244(; <eceived t!e 2ational and $tate award for 8nergy onservation 1ward%
244(; <eleased 5 Lit +oned milk packet and 144g packet containing 14 2o of 14 g
peda%
244';.nstallation of 14LCI !omogeni,er
244';prestigious .$9 &441-2441 certificate renewed

PRODUCT PROFILE
MYMUL manufactures the following proucts!

1'

ORGANISATION STRUCTURE

Board Of Directors

1&

ABBREVIATION
Cresident ; Cresident
M 7 ; Managing 7irector

President
MANAGING DIRECTOR
(MYMUL)
Manager
(CJ.)
(CJ.)
Manag
er
(dairy)
Manager
(Mktg)

Manager
(M.$)
Manager
(>inance)
$ecurity
supervisor
7 M
(17M.2)

24

MYMUL ; Mysore Milk Union Limited
7 M ; 7eputy Manager
C J . ; Crocurement and input department
C ; Croduction department
Mktg ; Marketing department
I< ; Iuman <esource department
M.$ ; Management .nformation $ystem
9rganisation structure is t!e skeleton of t!e organisation% .t prescribes t!e formal
relations!ip among various position and t!e activities% 1rrangements about reporting)
relations!ip) !ow an organisation member is to communicate wit! ot!er members) w!at
roles and procedures e?ist to guide t!e various activities performed by t!e members of all
parts of t!e organisation structure%
9rganisation structure plays a vital role in ac!ieving t!e organisational goals%
9rganisation structure s!ould be properly designed to facilitate t!e smoot! functioning of
t!e organisation%
9rganisation structure of MYMUL consists of 097*s at t!e top% +!en president) under
w!om is t!e Managing 7irector% Ie is t!e person w!o is responsible for smoot!
functioning of t!e organisation% 1fter Managing 7irector t!ere are managers and 7eputy
Mangers of various departments w!o are responsible and accountable for t!e activities of
t!eir respective departments% +!ere are subordinates) supervisors and employees w!o are
directly linked wit! department managers%

Procurement and Input Department
Structure:

Manager (procurement J .nput)

21

INTRODUCTION:

7eputy Manager
1ssistant Manager
8?tension 9fficer =rade-.
8?tension 9fficer =rade-..
8?tension 9fficer =rade-...
$r% +ypist $teno
Ielpers

22

<aw Material is t!e basic reAuirement of every organisation% +!e seAuence of
bringing milk to MYMUL starts from t!e collection of milk from t!e individual milk
producer%
MYMUL procures raw milk directly from t!e farmers t!roug! t!e 7airy o-operative
societies (7$)% MYMUL !as got (1 milk procurement routes and eac! route covers
around 15 to 24 societies% 7$ collects milk from producer w!ic! is stored in cans and
transported to MYMUL t!roug! trucks% .f t!e main dairy is far away from 7$) t!e milk
is transferred to nearest c!illing centre in order to c!ill t!e milk so as to avoid t!e growt!
of micro organisms w!ic! is t!en transported to main dairy%
MYMUL !as got t!ree c!illing centres located in Iunsur) #ollegala and !amara"anagar%
1fter collecting milk from various 7$) it will be processed in MYMUL and supplied to
t!e customers% $econdary items like packaging materials) engineering materials are
procured t!roug! calling tenders% +!e payment is made to supplier of milk on weekly
basis and t!e payment for t!e transport contractors is made once in a fortnig!t% .n case of
s!ortage of milk) t!e Union purc!ases milk from ot!er dairy at inter dairy price%
+!e payment is made to farmers on basis of percentage of >at and $2> content at a min
of 3%5: and '%5:% +!e daily average milk procurement !ere is 3)12)444%
FunctionS:

23

7$ supervision; 8?tension officers will be visiting once in a mont! to 7$ to
supervise t!e accounts and to guide t!e members for development of t!e 7$%
Croviding input activities to milk producers t!roug! 7$ at rig!t time%
Croper transportation of milk from 7$ to dairy%
Croper utilisation of funds under government sc!eme%
+!e tec!nical input programme of t!e Union mainly covers t!e following activities;
1nimal Iealt! are
1rtificial .nsemination
>eeds and >odder 7evelopment and 8?tensive $ervices

Procurement Graph (Avg. Kg`s/Day)
0
50000
100000
150000
200000
250000
2003-04 2004-05 2005-06 2006-07 2007-08

26

Purchase and Stores Department
Structure:

7eputy Manager (purc!ase)
1ssistant Manager (purc!ase)
Curc!ase/$tores office
$uperintendent
1dministration 1ssistant =rade -.
1dministration 1ssistant =rade-..
Ielpers

25

Introduction:
+!e purc!ase and stores department plays a vital role in t!e organisations like
MYMUL) w!ere t!e core function is production% +!e purc!ase department performs t!e
function ranging from collection of indents from eac! department to purc!asing t!roug!
general inAuiry or tender% +!is section basically deals wit! t!e purc!ase of LC78 films)
g!ee films) corrugated bo?es) cartons) sugar) nitric acid) mac!inery and parts) ve!icle
spare parts) stationery items) oil and lubricants etc%) e?cept milk%
9nce t!e purc!ased items arrive at t!e union premises) it is taken care by stores section%
$tore t!en sends t!e material to t!e respective sections as per t!e reAuirements% .f t!e
received materials are not used immediately it is kept into different places as per its
category for t!e future use% +!e damaged or obsolete items are sold to t!e public t!roug!
auction or ot!er means%
Purchase Procedure
+!e purc!ase process starts w!en t!e Managing 7irector of MYMUL approves
t!e indent reAuests from different section and departments%
7ocument reAuired; .ndent along wit! t!e note approved by Managing 7irector%
1) 8nAuiry will be made wit! t!e registered manufactures)
dealers/distributors/suppliers etc%
2) Creparing comparative statement of t!e offers received
3) $amples Auality c!ecking w!erever samples obtained
6) <ate analysis
5) Clacing before t!e purc!ase committee for decision) and t!en obtaining approval
of t!e Managing 7irector or direct approval from t!e Managing 7irector
depending upon t!e seAuences
F) Clacing purc!ase order/work orders

2F

() Luality c!ecking after receipt of material
') 1cceptance
9) Cayment as per terms and condition %
The purchase order consists of the following elements:
$upplier*s code number
7ate of order
Mysore 7airy*s inAuiry number
$upplier Auotation number
Material code number
7escription of materials
Units of materials to be purc!ase
Unit rate of material
+otal amount of material
7iscount (if any agreed)
entral/ 8?cise duty
$ales ta?
.nsurance c!arges
7elivery period
Cayment terms
$ignature of t!e approver

2(

Store section
$tore section acts as receiver and !older of purc!ased goods% 2ormally) it
purc!ases t!e materials on t!e basis of purc!ase order provided by t!e purc!ase section%
+!e purc!ase order basically contains materials reAuired) Auantity of material and t!e
department reAuiring t!at material% 7uring emergency purc!ases) respective departments
can purc!ase t!e materials wit! t!e approval of M7% +!en) it comes to store section for
record and used% +!e store department is using materials receipt ledger) store indent book
and daily register for efficient stock maintenance%
Division of Stores; =eneral stores) 7$ stores) Mac!inery and $pares%
Handling purchase order:
1fter t!e purc!ase order is received) store departments procure t!e type and
Auantity of materials as mentioned in t!e purc!ase order%
1fter t!e materials for purc!ase is received from vendor) store department
prepares M<< (Material <eceived <eport) and sends it to t!e concerned user
departments for t!e approval% +!e aut!ority at user division c!ecks t!e
specification of supply and approves it% 1pproval certificate is given eit!er by user
division or Auality control division%
+wo copies of M<< are retained in t!e store) two copies are sent to purc!ase
department and one copy is forwarded to finance department for release of
payment% +!e M<< is registered in record register% +!e materials are given to t!e
user division by recording t!e material issued in t!e issue register against
prescribed indent form%

2'

+!e re"ected lot will be returned to t!e respective vendors%
.f t!e materials are unused for 5 years) it is separated from t!e stock t!roug! co-
operative audit and placed in different location for resale% +!e difference amount
or loss is reduced from t!e book of account%
Production Department
Structure:

Manager (7airy)
7eputy Manager
9ffice $taff
1ssistant Manager
1dministration
1ssistant =rade 1
1dministration
1ssistant =rade 2
+ec!nical 9fficer
7airy $upervisor =rade-1

2&

Introduction ;
+!e main ob"ective of t!is department is to follow up production sc!edule as per
plan and to maintain a good relations!ip wit! ot!er departments in order to upgrade t!e
tec!nical efficiency of production%
Croduction department is well eAuipped and !as various types of !ig!ly sop!isticated
mac!ines imported from $weden and 7enmark% 9nce t!e milk is received from C J .
department) it is first weig!ed wit! t!e !elp of weig!ing bowl% Later) it is poured in dump
tank% $ample testing is made w!ere fat and $2> content of milk is accessed% +!e milk is
t!en sent to production section t!roug! stainless steel pipes%
Later) t!e raw milk is passed t!roug! plate c!illers of variable capacity w!ere it is cooled
up to 6-5 degrees elsius% +!is cooled milk is furt!er stored in a silo of 34)444 litres
capacity%
Production process ;

7airy $upervisor =rade-2
7airy 7airy +ec!nician 7airy Borker

34

+!e raw material passes t!roug! different process before converting into t!e
finis!ed good% Iere) raw milk is t!e input material w!ic! is processed to deliver
consumable milk and milk products as finis!ed goods%
Flow chart for milk processing at MYMUL:
Beig!ed at t!e weig! bridge and all t!e send
details are recorded%

<eceived milk at t!e <eception desk
>iltration
<aw c!illed milk is re-c!illed to less t!an

<aw milk recovered t!roug! tankers
Beig!ed at t!e weig! bridge and all t!e sender
details are recorded
<eceived milk at t!e <eception desk Auality testing of milk by t!e
s!ift
>iltratio
<aw c!illed milk is re-c!illed to less t!an
5
$kim milk powder ($MC) for
standardi,ing $2>
Luality testing of $M> by t!e s!ift
in-c!arge of Auality control

31

$tand
<aw c!ille

Casteuri,ation
1% 0alance +ank
2% <egeneration-. 1uto desludging and
standardi,ation
3% <egeneration-...

6% Ieating to more t!an (2 C!osp!ate test is done% .f found

5% <egeneration-... .nspect cleanliness of cans

<aw c!illed milk is re-c!illed
to less t!an 5
Luality testing of water Jcream by
t!e s!ift in-c!arge of Auality control
<aw c!illed milk is stored in raw milk
$ilos at less t!an 5
A
"
Pasteurization
1% 0alance +ank
2% <egeneration-.
3% <egeneration-...
6% Ieating to more t!an (2
for less t!an 15 secs

5% <egeneration-...
1uto dislodging and
standardi,ation
C!osp!ate test is done% .f found
positive reprocess t!e milk
.nspect cleanliness of cans
L7C8 film for
all specification
Cacked and stored in cold store at M '

32

F% <egeneration-. L7C8 film for

pasteuri,ed standardi,ed tonned

+est for 1cidity

Flow chart for curds manufacturing at MYMUL

Casteuri,ed standardi,ed toned milk)
!omogeni,ed toned milk/ full cream
milk is stored in pasteuri,ed milk
silos at less t!an 5
Milk is issued to packaging t!roug!
+est for 1cidity) >at) $2>%
.f deviations found re-
process t!e milk
#
Casteuri,ed toned milk to
curds pasteuri,er
Ieat milk to &4 for 5
min J cool to 32-35
1ddition of starter culture N
1%2 : to t!e milk for curd
making J mi?ing
Cackaging in 244 g and 544 g
sac!ets
.ncubation at room at
34-35
Luality testing of milk by
s!ift in-c!arge of L%
division
Monitor t!e !eating
temperature of milk to &4
and cooling to 32-35
+est Auality of starter
culture for purity and
activity
+esting of L7C8 film for
all specifications
L7C8 film for packing
milk
#
7ispatc! to t!e market

33

Clean in Place System (CIP System) at MYMUL
8very eAuipments and milk lines are cleaned once every day for milk processing%
Ience to process one litre of milk) one litre of water is used% +o clean t!ese eAuipments
and milk lines) sodium !ydro?ide and nitric acid of concentration 1: eac! are used% +!e
procedure followed to clean t!ese eAuipments and milk lines are as follows;
1
st
step - <inse wit! water
7uring t!is step) raw water is passed t!roug! eAuipment and milk lines and milk
residues are drained out%
2
nd
step - Lye ($odium Iydro?ide) step
7uring t!is step) lye is passed t!roug! eAuipments and milk lines so t!at fat
content stacked in eAuipments and milk lines will be drained out after few seconds and
t!e remaining lye solution will be collected in lye tank% 1gain) raw water is passed

+ransfer into cold store after t!e
acidity of curds is more t!an 4%55
:
+est for acidity) fat and $2>%
.f deviations found)
reprocess t!e milk to
manufacture t!e product
7ispatc! to t!e market

36

t!roug! eAuipments and milk lines so t!at acid remains in t!e eAuipments and milk will
be drained out%
3
rd
step - 1cid (2itric 1cid) step
7uring t!is step) acid is passed t!roug! eAuipments and milk lines so t!at inside
milk scaly will be removed and t!e acid will be drained out after few seconds% +!e
remaining acid solution will be collected in acid tank% 1gain) raw water is passed t!roug!
eAuipments and milk lines so t!at t!e acid remain in t!e eAuipments and milk lines will be
drained out%
6
t!
step - Iot water circulation
Iot water at about '4 degrees elsius is passed t!roug! eAuipments and milk
lines so t!at lines will be free from all t!e section%
5
t!
step - >res! water circulation
>res! water at room temperature is passed t!roug! eAuipments and milk lines so
t!at t!e lines will be perfectly cleaned and t!ey attain t!e room temperature

Quality Control Department
Structure:

Manager (7airy)
7eputy Manager
1ssistant Manager

35

Introduction;
MYMUL is committed to meet t!e ever-c!anging needs of t!e customers wit!out
compromising t!e Auality of its products% 1 separate Auality control department deals
wit! t!e Auality c!ecking mec!anism at t!e input) processing and output level% +!e milk
t!at comes to MYMUL by milk tankers goes t!roug! several tests before acceptance%
1part from t!at) Auality of milk and milk products is tested in different levels of
production and t!e Auality is maintained%
Quality Objectives at MYMUL;
+!e basic ob"ectives of t!e Auality control department at MYMUL are;
.mprove Auality of raw milks received from c!illing centres and bulk milk coolers
of t!e union

+ec!nical 9fficer
!emist =rade-1
!emist =rade-2
Lab +ec!nician
Ielper

3F

8nsure t!at all t!e batc!es of milk) curds) butter and g!ee to be sent to t!e market
confirms to t!e standard stipulated under 0ureau of .ndian $tandards) prevention
of >ood 1dulteration 1ct and 1=M1<#
1c!ieve better plant efficiency by carrying out all t!e maintenance sc!edule in
time
1c!ieve cost competitiveness by reducing t!e water consumption and energy
consumption in t!e plant to ma?imum e?tent
Maintain !ig! standard for !ousekeeping in plant
+o establis! !ig! Auality brand in t!e market for its products
Function;
Luality is t!e essential attribute attac!ed to any product% 1ll products and services
t!at want to be a leader in t!e market s!ould provide t!e superior Auality% MYMUL also
follows t!e same strategy% L% department at MYMUL ensures t!e Auality of t!e milk
and products to t!e prescribed standards% .t is also responsible for formulating t!e Auality
control policies and development of standards for t!e milk and milk products from time-
to-time% +!e standards are mandatory and include t!e latest Auality parameters%
+!e Auality control department randomly assesses t!e Auality of milk and t!e
products produced by t!e union% .t ensures t!at t!ey comply wit! t!e standards and also
provides instructions for improvement% <outine inspection of t!e dairy plant and c!illing
units are part of t!e responsibility of Auality control department to assess t!e mac!inery
condition) cleanliness and !ygiene and processing parameters being followed% +!e L%
department tests t!e packaging materials purc!ased by t!e union% +!e Auality testing
eAuipments are c!ecked regularly% +!e new packaging materials and newly introduced
products go t!roug! rigorous Auality control c!ecks by L% department% Usually L%
department tests t!e purc!ased materials t!at are directly concerned wit! food% 9nly after
t!e approval of L% t!e materials purc!ased are accepted and stored for record%
Tests carried out for milk and milk products:

3(

Analysis of milk;
$% Argunoreptic test;
+!is test is conducted to smell) sweet and flavour of milk%
2. Adulteration test:
+!is test is conducted to see if t!e procured milk is adulterated wit! salt)
sugar and soda by t!e producers%
3. Clot On Boiling test:
+!is test is conducted to determine !eat stability of t!e milk%
&% Fat and SNF test;
7uring t!is test) amount of $2>/>1+ is tested% 0asically) milk consists of '5
: water and 15 : solid particles% Crice of t!e milk received from farmers is
determined by its $2>/>1+ content% Iig!er t!e $2>/>1+ in t!e milk) greater will
be its price%
Analysis of curd ; +!ere are various tests conducted for t!e curds in Luality
ontrol department% +!ey are 1cidity test) Yeast and Mould test) coli form test) 0ody and
+e?ture) flavour test) >at and $2> test are also conducted to know t!e >at and $2>
percentage%
Analysis of Butter ;
+!e various Luality ontrol tests conducted for butter are 0utter >at test) curd
content test) moisture test) 1cidity test) yeast and mould test) coli form counts% Moisture
test is conducted to determine t!e moisture content of butter according to predetermine
levels of moisture content in t!e butter%
Analysis of Ghee ;

3'

+!e various Luality ontrol tests conducted for =!ee are moisture test) 1cidity
test) <M- (<ic!ards Messel -alue)) C- (Caulske -alue) test and >at test% Iere) t!e fat
content) acidity percentage and moisture percentage of t!e g!ee is compared wit! t!e
predetermined levels of t!e fat contents) acidity and moisture test%
Standardisation of milk and milk products
PRODUCTS FAT (min) SNF
(min)
ACIDITY
(max)
MOISTURE
(max)
Toned milk 3 '%5 4%1F -
Double toned
milk
1%5 & 4%1F -
Standardized
milk
6%5 '%5 4%1F -
Full cream
milk
F & 4%1F -
Butter '4 - 4%4( 1F
Ghee &&%( - 1%6 4%3
Peda 24 - - 24
Curds 3 '%5 4%&5 -
Lassi 1%3 21 4%F -

Marketing department
Structure :

Manager (Marketing)
7eputy Manager

3&

Introduction:
Marketing is a societal process by w!ic! individuals and groups obtain w!at t!ey
need and want t!roug! creating) offering and freely e?c!anging products and services of
value wit! ot!ers% Marketing is a customer-centred p!ilosop!y rat!er t!an product-centric
p!ilosop!y% +!e "ob is not to find t!e rig!t customer for our products) but t!e rig!t
products for our customers%
Marketing is t!e vital function of any organisation irrespective of its type of operation% .n
general) task of marketing department or marketer is to device marketing programs to
create) communicate and deliver value for consumers%

1ssistant Manager =rade 1
Marketing 9fficers =rade 2
$uperintendent
Marketing 1ssistants
Ielpers

64

Functions:
7evelop integrated business plan
1llocate sufficient budget for advertising and sales promotion
7evelop effective advertising and C< campaigns
7evelop efficient and effective distribution c!annel
>ormulate strategies to out-beat competitor
.mprove sales and market s!are for 2andini products
reate awareness for t!e 2andini products
<etain 2andini products as t!e market leader
.dentify t!e market demand for milk and milk products
Cerform regular market surveys to know t!e feedback of customers regarding
Auality of t!e product J its service%

Marketing at MYMUL:
MYMUL is marketing milk and milk products in t!e brand name of D2andiniE%
+!e impressive growt! in t!e sale of milk by MYMUL over t!e years is due to its
persistent efforts to maintain timely supply) maintaining Auality and attending to t!e
complaints of consumers and agents wit! prompt follow-up action%
~><8$I J CU<8E is t!e motto of MYMUL%

Mysore Dairy markets the following types of milk and milk products:
+oned Milk ; 3%1 : >at and '%5 : $2>
7ouble +oned Milk ; 1%5 : >at and & : $2>
Iomogenised +oned Milk ; 3%5 : >at and '%5 : $2>
>ull ream Milk ; F : >at and & : $2>
urd
$weet Lassie
=!ee
0utter milk

61

Ceda
Mysore Cak
+otal milk sales (1vg% Ltrs/day)
2003-04 2004-05 2005-06 2006-07 2007-08
0
20000
40000
60000
80000
100000
120000
140000

Total curd sales (Avg. Ltrs/day)

62

Distribution system;
Milk and milk products are distributed in two times) at morning and evening%
+!e distribution routes are allocated on t!e basis of route-wise) agent-wise and Auantity%
1gents are appointed based on t!e regulation of t!e milk union and o-operative 1ct)
after depositing some amount as a security deposit% Minimum distance of one kilometre is
maintained between one agent to t!e ot!er% +!e agent takes milk and milk products twice
a day% 1fter deducting t!e commission) t!e remaining payable amount is remitted in two
ways; cas! or credit system%
Marketing strategies of MYMUL ;
1ll t!e !eavy ve!icles are c!anged to medium insulated ve!icle to ensure timely
supply
0rand building is taken up t!roug! acrylic sign boards) glow sign boards) truck
painting) wall paintings etc%)
+o strengt!en t!e Iome delivery by encouraging t!e delivery boys by providing
t!em wit! water proof caps and bags%

63

Crovision !as been made to encourage t!e agents to sell more milk during flus!
(9ct - 7ec) by giving 24 ps% .ncentive
$c!ool c!ildren/ Ma!ila Mandal (women) will be taken for dairy visit to develop
confidence about Auality of milk
7oor-to-door campaigning is taken to educate consumers about Auality of
2127.2. milk compared wit! t!e ot!er e?isting private brands of milk
1gents orientation programme is conducted every year wit! a view to encourage
t!em by solving t!eir problems
Milk is made available t!roug!out t!e day by opening D12Y +.M8 M.L#
9U2+8<$E
0y restructuring marketing department more focus is given to key t!rust areas in
market development activities like consumer education) identification of new
market for t!e e?isting products and planning of effective sales and promotion
programme%
Promotional measures adopted by MYMUL ;
.t is organising consumer awareness programme as a part of market development
program to create awareness on D2andiniE milk% .t includes door-to-door
campaigns) organisational meetings and Mysore 7airy Clant visit
7istribution of +arpaulin bags to door delivery boys
Ball painting was done
1dvertisement campaigns in t!e electronic media
Cublic contact programme of one day is being launc!ed in all t!e taluks of Mysore
district
Ceriodic survey of !ouse!olds to collect t!e feedback and to attend t!e
weaknesses observed
+raining t!e marketing staffs at all levels regarding various aspect of promotion%

66

SALES AT MYMUL:

Sale of Milk and Milk Products (Avg. Per day)
Sl.No Product Quantity Rate (Rs.)
1 +oned Milk (Lit) 12455( 1F%44
7ouble +oned Milk F1F2 16%44
Iomogenised +oned Milk FFF3 1'%44
>ull ream Milk 145&( 22%44
Total 163&(&
2 urd (kg) 2F441 24%44
3 Lassie (244 ml) 11(( 5%44
4 0utter Milk (244 ml) 1332 6%44
5 Ceda (kg) 1F5 1(4%44
6 Mysore Cak (kg) 64 224%44
7 =!ee (Lit) 2''3 234%44
COMPETITOTR' I(FPROM"TIO(
The ma)or competitors of the MYMUL are as follows!
*erse+
Dola
"ro,+a
-omatha
Thirumala
'wasthi,

65

Loose mil, .enors
*erse+
Pant at Andhra Pradesh
Sae n Unon |ursdcton 45 TLPD(100TLPD n Cty)
M.R.P.rate Rs. 16.00 per ters - seer rate Rs. 15.50 to based
on quantty.
Commsson ranges from 40-70 per ter (good ncentve
schemes)
Ouaty percepton - thck and onger shef fe.
Fexbe dstrbuton - retaers, whoesaers or any one wng
to se.
Payments cash and carry or whe coectng empty crates on
return trp.
Avaabty mosty reta outets and now capturng nsttutona
saes by any means.
Dola

Pant at Neore.
Avaabty of raw matera at cheaper rate.
Sae n unon |ursdcton 18TLPD (30TLPD n cty)
MRP rates Rs. 13.00 per ter - seer rate 12.50.
Commsson ranges from pase 40-50
Ouaty percepton - thck and ong shef fe.
Fexbe dstrbuton - retaers or any one wng to se.
Returns w be accepted.
Payment - cash and carry or whch coectng empty on return
trp.
Channe members are payng crtca roe n boostng the
saes.
Packng s attractve wth mutcoor prcng on sachets.
Consumer perceves that mk s good for makng curds.
"ro,+a

6F

Pant at Bangaore.
Sae n unon |ursdcton 10TLPD(25YLPD n ctes).
MRP Rates Rs 18.00per ter.
Commsson ranges form 60 pase per ter.
Avaabty mosty reta outets ke bakeres. Condments and
departmenta stores.
Packng s attractve wth mutcoor prntng on sachets.
Concentratng on vaue added products and much on mk.
Loose Mil, 'ale
Market share s next to Nandn.
Loose mk from erode and oca catte rearers.
Sae n unon |ursdcton 140 TLPD.
MRP Rate Rs. 7.00 to 12.00per ter.
Ma|orty of the mk s heavy aduterated and no unform
quaty.
Saes from 50m and above.
Ma|or consumers are ow-ncome group segments, road rde
teashops and sweet neat stas.
Fexbe payment system.
Consumer perceves that mk supped by oca catte rears s
fresh .

Finance Department

6(

Structure:
Introduction:

Manager (finance)
7eputy Manager
1ssistant Manager
1ccount 9fficer
$uperintendent
1ccount 1ssistant =rade .
1ccount 1ssistant =rade ..
Ielpers

6'

>inance department is one of t!e most important functional departments of any
organi,ation% .t aims at gat!ering t!e funds from various sources to meet t!e financial
reAuirements of t!e organi,ation% apital budgeting) capital structure and working capital
management are t!ree important areas of decision making by finance department%
.n capital budgeting) finance department develops efficient capital investment plans for
t!e favourable operation and growt! of t!e company% .t accounts for !uge amount of
managerial time and energy%
.n capital structure decisions) t!e means to finance t!e investment pro"ects is finalised%
+!e optimum debt-eAuity ratio is decided in order to minimi,e t!e cost of financing t!e
pro"ects% 0ut it s!ould not conflict wit! t!e organi,ational ob"ectives% Bit! t!e increase in
eAuity) t!e long-term liability of t!e firm is increased w!ereas t!e increase in debt will
increase t!e risk for t!e firm%
+!e difference of current assets and current liabilities is t!e working capital for t!e firm%
Borking capital management deals wit! t!e s!ort-term financial management of t!e firm%
.t is very important for running t!e day-to-day financial activities in t!e organi,ation)
wit!out any interruptions% +!e credit policy to customers and t!e inventory policy at
organi,ation are important t!ings to be taken care of% +!e appropriate sources of s!ort-
term financing are to be decided%
Objectives:
+o protect t!e financial interests of t!e company
+o !elp in ac!ieving t!e business results
+o monitor and control t!e collection and payment of funds
Liaison wit! banks and financial institutions
+o monitor t!e cost control and cost reduction tec!niAues
+o monitor t!e budget and budgetary controls
+o maintain a liAuidity position

6&

+o access t!e working capital reAuirements
+o maintain adeAuate funds to carry on t!e business effectively
>unctions of finance department at MYMUL;
Crepares and maintains Kournal book) Ledger accounts) profit J loss accounts and
0alance $!eet for eac! year
+o analy,e t!e financial position of t!e organi,ation regularly by maintaining t!e
records of financial statements in efficient manner and analy,ing it
omputes t!e working capital reAuirements and decides t!e sources to finance it
in a less risky and c!eap way
alculates t!e future reAuirement of funds and find out met!ods for making it
available
Maintains good relations!ip wit! t!e ot!er departments by making t!em available
t!e financial information as and w!en needed%
Net Profit ( in Lakh rupees)

54

Administration Department
Structure ;

7eputy Manager (admin)
1ssistant Manager (admin)
$uperintendent (admin)
1dministration 1ssistant =rade- .
1dministration 1ssistant =rade-..
Ielpers

51

Introduction
D9rgani,ations are not mere bricks) mortar) mac!ineries or inventories% +!ey are
t!e people% .t is t!e people w!o staff and manage organi,ationsE
+!e success or failure of any organi,ation is basically dependent on t!e Auality of !uman
resource it !as% Iuman resource gives t!e competitive edge to an organi,ation from t!e
ot!er% $o) every successful company gives importance to its !uman resource and
maintains a separate department to deal wit! it%
urrently) MYMUL !as 3'1 employees at total% +o deal wit! t!e !uman resources at
MYMUL) t!ere is a separate department called as 1dministration 7epartment or I<
7epartment% .t deals wit! all t!e dimensions of t!e employees at MYMUL%
Recruitment and Selection:
1 committee called D8?pert Canel ommitteeE) t!e ape? body of t!e union w!ic!
comprises of; M7 of MYMUL) Cresident of MYMUL) one representative from t!e #M>)
one from t!e 0oard of 7irectors of 2770) one member from t!e <egistrar of t!e o-
operative $ocieties) is aut!ori,ed for !iring new employee to any post or cadres at
MYMUL%
Procedure for Selection:
.f a post is to be fulfilled by competitive e?amination) t!en after giving adeAuate
publicity in t!e newspaper) t!e appointment procedure will be carried out in t!e
order of merit from t!e list of candidates prepared by t!e selection committee or
e?pert panel
>or direct selection) after giving adeAuate publicity in leading newspaper to t!e
recruitment) t!e appointing aut!ority may determine in t!e order of merit

52

.ncase if t!e post is being filled by internal promotion from its own staff) it is done
by selection of a person on t!e basis of merit and suitability in all respects to
disc!arge t!e duties of t!e post wit! due regard to seniority from
among t!e persons eligible to promotion will be screened by t!e committee
prescribed by MYMUL%
1ge limit; >or direct recruitment t!e age limit for general candidates is t!at one must
!ave attained t!e age of 1' years and not attained t!e age of 35 years%
Service benefits:
+!e employees of MYMUL are entitled to various service and welfare benefits%
$ome of t!e benefits provided to employees are;
7earness 1llowance (7%1); .t is provided as par wit! t!e state government
employees% +!e 7%1 amounts to 22%25 : of 0asic $alary%
Iouse <ent 1llowance (I%<%1); 8ac! employee is entitled for I<1% .t amounts to
13 : of 0asic $alary%
onveyance 1llowance; +!e employees owing four w!eelers get a conveyance
allowance eAuivalent to t!e cost of 15 Litres of petrol w!ereas t!e employees wit!
two w!eelers get amount eAuivalent to 24 Litres of cost of petrol and ot!ers 5
Litres of petrol
$!ift 1llowance; 1 s!ift allowance of <s% 2/day is provided to t!e workers
working in t!e second s!ift i%e% from 2 C%M to 14 C%M% and s!ift allowance of <s%
3/day is provided to workers working in t!ird s!ift i%e% from 14 C%M to F 1%M%
Ieat 1llowance; 1n employee working in t!e boiler section get an additional
rupee per day plus 254 ml of milk for self consumption on duty%
old storage 1llowance; +!e employee working in t!e cold store get an additional
rupee per day plus 254 ml of milk for self consumption on duty

53

1ttendance 0enefits; +!e employees w!o remain regular get t!e additional
amount of <s% 34 per mont! and !e or s!e is allowed to be late by an !our once a
mont!%
0onus; +!e bonus is awarded to employees in accordance to +!e 0onus 1ct 1&F5)
amended by .ndian government from time to time%
Milk at $ubsidi,ed rate; 8ac! employee gets a subsidi,ed milk facility% >or every
litre milk purc!ase) O litre milk at free all t!e time% 7uring flus! season (9ct G
2ov) w!en t!e procurement of milk is very !ig!) eac! employee gets P litre of
milk at free
>ree supply of =!ee; 8ac! employee gets 544 g free supply of g!ee twice a year%
Crovident >und; +!e provident fund facility is provided to employees as per t!e
8mployees Crovident >und and >amily Cension >und 1ct%
$ubsidi,ed anteen; Mysore 7airy !as got one canteen to provide convenient and
c!eap food facilities to its employees% Iere) t!e employees get breakfast and meals
at very c!eap prices%
Medical >acility; .t covers t!e employee and !is dependents) c!ildren less t!an 1'
yrs% >or .npatient up-to <s% 54)444 per annum is provided%
Leaves;
8arned Leave; 1n employee can take earned leave of 34 days per year) w!ic! if
not taken can be accumulated for a ma?imum of 264 days%
Ialf Cay Leave; +!e employees are also entitled to 24 days of !alf pay leave per
year%

56

asual Leave; 1n employee can take 15 days casual leave in a year) but it s!ould
not e?ceed ( days in a stretc!% asual !alf day leave can also be taken%
Maternity Leave; >emale employees are availed 2-3 mont!s maternity leave% 0ut
it is granted only twice in one*s entire service period%
8?traordinary Leave; .t is only provided to t!e permanent employees and can be
granted only w!en no ot!er leaves are left to t!e employee*s credit% +!is leave is
granted not more t!an F4 days at once and can be provided ma?imum of 5 times
in entire service period%
Promotion and Transfer; Cromotion is solely on t!e basis of sensitivity and e?perience%
+ransfers are always accompanied by promotions
Induction: 1fter an employee is employed in MYMUL) !e or s!e is made familiar to
t!e union and also know t!e ob"ectives) values) functions and t!e operations% +!is !elps
t!e employee to interact wit! senior staff members from various departments%

Training and Development:
+raining and 7evelopment refers to t!e imparting of specific skills) abilities and
knowledge to an employee% +raining refers to t!e process of imparting specific skill%
7evelopment refers to t!ose learning opportunities designed to !elp employee*s growt!%
+!e need for training and development is determined by t!e employee*s performance
deficiency) computed as follows;
+raining and development needQ $tandard performance G 1ctual performance
0enefits of +raining and 7evelopment programs in MYMUL;
.mproves t!e morale of t!e work force%

55

Ielps people identify wit! organisational goals%
.mprove t!e "ob knowledge and skills at all levels of t!e organi,ation%
1ids in improving organi,ational communication%
Ielps employees ad"ust to c!ange%
.mproves t!e coordination between employees%

Management Information System (MIS) Department
Structure:

Manager (M.$)
1ssistant Manager
$ystem 9fficer
1ssistant
Ielpers

5F

Introduction:
Management .nformation $ystem (M.$) is t!e integrated part for providing
information to supporting operation) management and decision making in an
organi,ation% .t mainly deals wit! processing information and conversion of inputs into
outputs%
Function:
M.$ is a systematic effort to furnis! timely information to t!e top management% +!e
main function of t!is department is to collect information from t!e production department
everyday in t!e form of daily reports% +!e information collected is in t!e form of t!e
following;
1ctual production (output)%
0reak down of mac!inery ( if any )%
1bsenteeism of workmen ( if any )%
<aw material storage ( if any )%
9t!er details%
+!e information t!us is received) classified) processed and analysed% 1fter t!e
information is t!oroug!ly analysed) t!e department combines it in t!e form of weekly
report and mont!ly reports% +!ese reports are submitted to M7 w!o in turn issues
instructions to t!e concern department for furt!er actions% +!e department will take care
of avoiding t!e wastage and ot!er production losses% .t !ig!lig!ts t!e importance of
optimum utili,ation%

5(

SWOT ANALYSIS
Strength
1% Market leader%
2% D2andiniE is a trusted !ouse !old brand name%
3. +wo lak! farmer members%
4. Crovides e?cellent veterinary) 1.) vaccination) 8?tension facilities) >eeds and
>odder seeds supply etc%) in t!e field) w!ic! cannot be t!oug!t off by any private
operator% Ience earned lot of goodwill from member producers) w!o patroni,e t!e
union t!roug!out t!e year%
5% Ias earned t!e distinction of not failing to deliver t!e milk to market on time
t!roug!out t!e year% +!ere are days wit! no power supply) no water supply@ but
t!ere is no day wit!out 2127.2. milk supply%
F% Iig!ly remunerative and timely payment to producers%
(% Union is in good financial position%
'% .$9 &441-2444 certificate%
&% =ood institutional support from #M>) 2770) etc%)
Weakness
1% Lack of fle?ibility in deciding about its operation% 2o aut!ority over issues like
pricing) offering volume discounts etc%)
2% Colitical interference%

5'

3% 9rgani,ational structure does not permit incentive/ reward for good performance%
Opportunities
1. $ince t!e Mysore district is under auvery basin) perennial greens are available to
t!e cattle%
2% .nstitutional markets) bakeries) !otels etc%) are not fully tapped and t!ese can be
captured preferably by direct marketing%
3% 7iversification of milk products like Ceda) Mysore Cak%%%% etc%)
4. 8?ploit t!e DIuman >aceE) by positioning in t!e market as an organisation wit!
social responsibilities of serving t!e milk producer by paying remunerative price
and serving customer by offering !ygienic Auality product at a reasonable price
t!roug!out t!e year% Union is not in t!e business to ma?imise t!e profit as in t!e
case of private dairies and is acting as price stabili,ing force in t!e market%
Cro"ecting t!ese to t!e customers will reinforce t!e positive image of t!e
organisation in customer*s minds as a caring organisation w!ic! service to t!em
as its motto%
Threats
1% 1fter liberali,ation) entry barriers in t!e dairy industry eased for new entrants%
2. +!e competition from o-operatives like 7odla) Ieritage) #amadenu%%%% etc%)
3% Crivate dairies procure milk at low cost from producers and sell milk resorting to
unet!ical trade practices% .t is a marketing war in w!ic! union !as to fig!t by rules
and ot!er private dairies do not fig!t by rules% Ience) t!ere is no level playing

5&

field for organi,ation wit! social responsibilities to compete wit! organi,ations
wit! purely profit motive%
6% $ome private dairies are selling !omogenised milk) w!ic! appears ric!% +!e union
cannot !omogeni,e all its !uge Auantity of milk due to lack of !omogeni,ing
capacity and increase in processing cost%
5% Clans of ma"or companies like <eliance) .+ to enter into milk market in future%

VISION AND MISSION:
Vision:
+!e vision of MYMUL is to provide Auality milk products to t!e consumers and
emerge as one of t!e top milk union of t!e co-operative dairy industry in t!e country%
Mission:
MYMUL is committed to provide ma?imum possible price for t!e milk supplied
by its members and provide necessary inputs to en!ance milk production w!ile ensuring
economic viability of t!e union%
Quality policy:
MYMUL is committed to producer*s welfare t!roug! customers delig!t by
adopting continuous improvement and ensure pure and !ygienic milk and milk products%
Values:
Ionesty
7iscipline

F4

Luality
ost control
o-operation
+eam spirit
$ervice motive

F1

Objectives of MYMUL:
+o provide a guaranteed remunerative milk market round t!e year for all t!e
marketable surplus of member producers in t!eir villages%
+o procure milk) process into good Auality milk/milk products and market it most
economically and efficiently to give ma?imum overall net-returns to t!e
producers and general satisfaction to t!e consumers%
+o provide essential tec!nical inputs and services to t!e producers at t!eir door-
steps in an economic and efficient manner and also in a way most acceptable to
t!em%
+o build village level institutions co-operative sector to manage t!e dairy
activities%
.n order to fulfil t!ese ob"ectives) t!e union is constantly engaged in working towards
improvements of business as well as t!e welfare of t!e producers% +!is !as resulted in
greater performance on commercial as well as in institutional fronts%

F2

MC/I('EY0' 1 ' FR"ME 2OR/
'TR"TE-Y :- A set pf decsons and actns amed at
ganng a sustanabe ```` competve
advantage.
'TRUCTURE !3 The organzaton chart and assocated
nformaton that shown
who reports to whch whom and how task
are dvded up an
ntegrated.
'Y'TEM' !3 The fow of actvtes nvoved n the day
operaton of the busness, ncudng ts core
process.

F3

'TYLE !3 How managers coectvey spend ther
tme and attenton and how they use symboc
behavor. How management act s more mportant than
what management says.
'T"FF :- How companes deveop empoyees and
bass vaues.
'4"RE 5"LUE' :- Commony hed beeves, mndsets and
assumpton that shapes how an organzaton
behaves ts corporate cutu
'/ILL' :- An organzatons domnate capabtes
and competences.
FINDINGS
Following are the findings during the study
MYMUL is serving rural region and !elping for t!eir upliftment) by way of
procuring milk t!roug! poor farmers t!roug! its formed societies and paying t!em
fair returns% .t is contributing for economic upliftment of farmers%
MYMUL is earning profit year after year and it is not confronting any financial
problems%
MYMUL is eAuipped wit! fully automatic systems w!ic! ensure total Auality
maintenance%
.t !as got its own Auality control department wit! fully eAuipped laboratory and
eAuipments t!at !elp detecting any adulteration or any suc! ot!er defects%

F6

+!roug! t!e use of advanced tec!nology) MYMUL provides its customers
bacteria free and balanced nutritious milk%

SUGGESTIONS
+!e following suggestions may be provided to enable MYMUL e?pand its market
s!are and maintain t!e present market leaders!ip as well as to improve its position in t!e
future years%
+!ere s!ould be more number of 2andini milk parlours in Mysore city and
outside%
9rganisation s!ould try to improve t!e packaging of t!e product to prevent
leakage%
9rganisation s!ould try to adopt more and more new tec!nology and met!ods of
production to survive in t!is competitive market%
+!e company s!ould provide some attractive sc!emes for t!e regular consumers
as well as retail sellers%
MYMUL must adopt professionalism in its all-working departments%
>acilities and benefits for 1gents) <etailers s!ould improve still better% $o t!at t!e
turnover of t!e <etailers will be reduced and market s!ares will be increased%

F5

.t must guide t!e consumers regarding its product by giving various
7emonstration programmes%
9nline computer systems (website) !ave to be created by t!e organisation%

CONCLUSION
Mysore Dairy started functioning from 1&(5 under t!e Borld 0ank aided 7airy
7evelopment Cro"ect and t!e union was registered on 23/11/1&(F% 1fter bifurcation of
Mysore and Mandya 7istrict o-operative Milk Croducers $ocieties Union on 1/6/1&'()
it is renamed as Mysore G !amara"anagar 7istrict o-op% Milk Croducers $ocieties
Union Ltd% +!is dairy offers t!e best Auality milk in Mysore- CU<8 J ><8$I%
+!e Mysore G !amara"anagar 7istrict o-op% Milk Croducers $ocieties Union is
marketing milk and milk products in t!e name of D2andiniE are t!e best Auality% .t !as
been catering t!e needs of ma"ority of population of Mysore% +!e future goal of t!e
organisation is to computeri,e t!e w!ole organisation% +!e company s!ould lay emp!asis
on moderni,ation and product diversification by w!ic! t!e company can meet t!e fast
c!anging reAuirements of t!e markets and to keep on wit! t!e competitors% 2ow a days)
competitors !ave been entering into t!is field in order to e?ploit t!e utility of t!is
industry%
+!e slogan of Mysore G !amara"anagar 7istrict o-op% Milk Croducers $ocieties
Union is ~QUALITY EXCELLENCE FROM COW TO CONSUMERS.

FF

#I#LIO-R"P4Y
"nnual Repots of MYMUL
Marketng management -
Php Koter
Producton Management -
Ashwathappa K
Personne and Human resource managemen - P.
Subbarao
Fnanca management -
Prasanna Chandra
2e6sites !3
www.nandnmk.com
www.ndanmk.com
www.nandnproducts.com
www.ndandary.com

F(

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