Introduction

The progress of mankind and civilization has, since history began, been
closely alike with his diet. Even today the leading action and nations capable
of becoming strong are those, which can obtain food and abundance for their
people.
It has been often said that the cow is a machine that
converts raw materials (plants) into food in a surprisingly efficient manner.
There are more than 787 breeds of cattle and 72 breeds of buffaloes in the
world. India has 30 and 10 distinctive breeds of cattle and buffaloes
respectively. The characteristic hump, long ears and bushy tail distinguish
the Indian cow from the others. World over cows dominate milk production
but in India, the buffaloes are the major contributor to the total milk
production. India has the worlds largest (53%) buffalo population. 44% of
milk animals in India are buffaloes and they contribute over 50% to the
Indias milk production. India has over 5.4 crore breed able cows and 4.2
crore breed able buffaloes (1998-99 cattle census) thats about one cow or
buffalo for every ten of us.
MILK ESSENTIAL FOR NOURISHMENT:
Milk is natures ideal food for infants and growing children in our country,
except in rare cases of lactose intolerance. The important place milk
occupies in our diet has been recognized since Vedic times, and all modern
research has only supported and reinforced this view. In fact, milk is now
considered not only desirable but essential from the time the child is born.
The baby is recommended to be breast-fed until it is weaned and thereafter
given cow/buffalo/goat/sheep or similar domesticated mammals milk till he
or she reaches 12 years of age.

The National Institute of Nutrition has recommended:

a minimum of 300 gms daily intake of milk for children between 1-3

years of age

250 Gms for those between 10-12 years, if they are vegetarian, and

250 Gms and 200 Gms for the same age groups of non-vegetarian

children.
What is Milk?
Milk may be defined as the whole, fresh, clean, lacteal secretion
obtained by the complete milking of one ore more healthy milk animals,
excluding that obtained within 15 days before or 5 days after calving or such
periods as may be necessary to render the milk practically colostrums-free
and containing the minimum prescribed percentages of milk fat and milksolids-not-fat. In India, the term milk, when unqualified, refers to cow or
buffalo milk, or a combination of the two.
Milk is rich in protein and calcium, which help build the muscles you
need to throw a ball or climb a tree.
One 200 ml glass of milk provides a power-pack of nutrients a child
needs daily. Here's how a glass of milk fulfills your daily requirement of
nutrients in percentage terms:

FOOD AND NUTRITIVE VALUE OF MILK:

Milk is having high nutritive value. It supplies body-building
proteins, bone-forming minerals and health-giving vitamins and furnishes
energy-giving lactose and milk fat. Besides supplying certain essential fatty
acids, it contains the above nutrients in an easily digestible and assailable
form. All these properties make milk an important food for pregnant
mothers, growing children, adolescents, adults, invalids, convalescents and
patients alike.

Proteins:
Milk proteins are complete proteins of high quality, i.e. they contain
all the essential amino-acids in fairly large quantities.
Minerals:
Practically all the mineral elements found in milk are essential for
nutrition. Milk is an excellent source of calcium and phosphorus, both of
which, together with vitamin D, are essential for bone formation.
Vitamins:
These are accessory food factors which are essential for normal
growth, health and the reproduction of living organisms. Milk is a good
source of Vitamin A (provided the cow is a fed sufficient green feed and
fodder), Vitamin D (provided the cow is exposed to enough sunlight),
thiamine, riboflavin, etc.
Fat (Ghee):
Milk Fat (lipid) plays a significant role in the nutritive value, flavour
and physical properties of milk and milk products. Besides serving as a rich
source of energy, fat contains significant amounts of so-called essential fatty
acids (linoleic and arachidonic). The most distinctive role which milk lipids
is not duplicated by any other concerns flavour. The rich pleasing flavour of
milk lipids is not duplicated by any other type of fat. Milk fat imparts a soft
body, smooth texture and rich taste to dairy products. Lastly, milk lipids
undoubtedly enhance the consumer acceptability of foods; they also serve
the best interests of human nutrition through the incentive of eating what
tastes good.

Lactose:
The principal function of lactose (carbohydrate) is to supply energy.
However, lactose also helps to establish a mildly acidic reaction in the
intestine (which checks the growth of proteolytic bacteria) and facilitates
assimilation.

Energy values:
The energy-giving milk constituents and their individual contributions are as
follows:
Milk Fat

9.3C/g

Milk

4.1C/g

Protein
Milk sugar

4.1C/g

Where 1 C (Food Calorie) = 1000 c (small calorie).

Note: The energy value of milk will vary with its composition.

Objectives of the study

To have the practical knowledge of the working of an organization.

To know where the co-operative dairies stand in this competitive market.

To view the technological advancements made in the dairy co-operatives.
Scope and Limitations of the study

The study was conducted in the premises of Bangalore Dairy.

The analysis is purely based on the information furnished by the

respective

departments.

Time limit was the major constraint.

As per the company rules many information was not disclosed.

INDUSTRY PROFILE
In India, Dairying has been practiced as rural cottage industry since a very
long time. At the end of the 19th century Military dairy farms and cooperative Milk unions were established all over the country. However,
market milk technology may be considered to have commenced in 1950
with the functioning of the Central Dairy of Aarey colony. In 1956 Milk
product technology was started with the establishment of Amul Dairy. The
year 1850 is seen as the dividing line between farm and factory scale
products in the developed dairying countries like USA.
Market of Milk Industry in India:
The first Military farm was established in Allahabad in 1889.

In 1913 a co-operative union was established in Allahabad and after

that all over the country such unions were established.

Since 1945 long distance refrigerated rail transport of milk from

Anand to Bombay was started.

Pasteurization and bottling of milk as large scale for organized

distribution was started at Aarey (1950), Worli (1961), Calcutta
(1959), Delhi (1959), and Madras (1963).

Establishment of Milk plants under Five Year Plans for Dairy

development all over India. It was undertaken with the dual object for
increasing the national level of milk consumption and ensuring better
returns to the primary milk producer.

Karnataka co-operative Milk Producers Federation Limited (KMF) is

the apex Body in Karnataka representing Dairy Farmers Co-operatives. It is
the third largest dairy co-operative amongst the dairy cooperatives in the
country. In South India it stands first in terms of procurement as well as
sales. One of the core functions of the Federation is marketing of Milk and
Milk Products. The Brand Nandini is the household name for Pure and
Fresh Milk and Milk Products.

KMF has 13 Milk Unions throughout the State which procure milk from
Primary Dairy Cooperative Societies (DCS) and distribute milk to the
consumers in various Towns/cities/Rural markets in Karnataka.
The first ever World Bank funded Dairy Development Program in
the country started in Karnataka with the organization of Village Level
Dairy Co-operatives in 1974. The AMUL pattern of dairy co-operatives
started functioning in Karnataka from 1974-75 with the financial assistance
from World Bank, Operation Flood II & III. The dairy co-operatives were
established under the ANAND pattern in a three tier structure with the
Village Level Dairy Co-operatives forming the base level, the District Level
Milk Unions at the middle level to take care of the procurement, processing

and marketing of milk and the Karnataka Milk Federation as the Apex Body
to co-ordinate the growth of the sector at the State Level.
Co-ordination of activities among the Unions and developing market
for Milk and Milk products is the responsibility of KMF. Marketing Milk in
the respective jurisdiction is organized by the respective Milk Unions. The
Federation monitors Surplus/deficit of liquid milk among the member Milk
Unions. While the marketing of all the Milk Products is organized by KMF,
both within and outside the State, all the Milk and Milk products are sold
under a common brand name NANDINI.

COMPANY PROFILE
BACKGROUND AND INCEPTION OF THE COMPANY
Bangalore Milk Union (BAMUL) is a biggest co-operative Milk Union in
south India, fully owned and managed by milk producers of Bangalore
Rural and Bangalore Urban Districts of Karnataka State. Since its inception
in 1975, the Union is constantly striving to further the dairy development
and marketing activities in its milk shed area. It is a Milk Producer Farmers
organization for dairy development activities. The philosophy of this cooperative milk producers organization is to eliminate middlemen and
organize institutions owned and managed by the milk producers by
themselves, by employing professionals. Achieve economic of scale & to
ensure maximum returns to the milk producers, at the same time providing
wholesome milk at reasonable price to urban consumers. Ultimately, the
complex network of cooperative organization should build a strong bridge
between masses of rural producers and millions of urban consumers and
achieve a socio-economic revolution in the vicinity of the Territory.

On January 1st 1958 a pilot scheme under Department of Animal

Husbandry, Government of Karnataka was started to cater, Veterinary
Hospitals & Milk process facilities at National Dairy Research Institute
(NDRI). In 1962, The Bangalore Milk Supply Scheme came into existence
as an independent body Bangalore Dairy, a joint venture of UNICEF,
Government of India & Government of Mysore was dedicated to the people
of Karnataka State of 23rd January 1965 by the then Honble Prime Minister
Late Sri Lal Bahadhur Shastriji. The Bangalore Dairy scattering over an area
of 52 Acres of land, the Dairy had an initial capacity to process 50,000 liters
of milk per day. This Dairy was handed over to Karnataka Dairy
Development Corporation (KDDC) in December 1975. As a part of Rural
Milk Scheme of Mysore, Hassan & Kudige under Operation Flood-II and
then transferred to Karnataka Milk Federation (KMF) in May 1984 as a
successor of KDDC. To cater to the growing demand for milk by the
consumers of Bangalore City, the capacity was increased to 1.5 lakh liters
per day under the Operation Flood-II during 1981 and later increased to 3.5
lakh liters per day under Operation Flood-III during 1994.
The Bangalore Urban & Rural Districts Milk Producers Co-operative
Societies Union Ltd., (BAMUL) was established in the year 1975. The milk
shed area of the Union comprises Bangalore Rural and Bangalore Urban
Districts, having 2611 revenue villages. The Union has organized 1,497
Dairy Co-operative Societies (DCS) in 2,037 villages, thereby covering 78%
of the total villages in these two districts. In these DCSs, there are 2, 97,162
milk producer members. Among them 85,849 members are women and
52,911 members belong to Schedule Caste and Schedule Tribes.
As per the policies of the National Dairy Development Board (NDDB),
Bangalore Dairy was handed over to Bangalore Milk Union (BAMUL) on
1st September 1988. The Union is capable of processing the entire milk
procured, by timely implementation of several infrastructure projects like

commissioning of Mega Dairy, new chilling centers & renovation of product

block.
Central Registration Authority has registered Bamul under MMPO.
Today, the Union has become biggest Milk Co-operative Union in southern
India. Bamul has been certified for ISO 9001-2000 and HACCP (IS-15000)
for quality management and Food Safety Systems.
The philosophy of this co-operative milk producers organization is
to eliminate middlemen and organize institutions owned and managed by
milk producers, by employing professionals. Achieve economies of scale of
rural milk producers by ensuring maximum returns and at the same time
providing wholesome milk at reasonable price to urban consumers.
Ultimately, the complex network of co-operative organization should build a
strong bridge between masses of rural producers and millions of urban
consumers & achieve a socio-economic revolution in the village community.
Bangalore Milk Union is offering most remunerative purchase
price, which is considered as one among the best prices in the
country, to its producers. Even though the Union is offering the best
prices to the milk procured, the selling price of milk and milk
products to consumers is the lowest in the country. Hence, the
margin between the procurement price and sales price is one among
the least in the country. This cost competitiveness was achieved due
to large-scale procurement, processing and marketing, supported by
effective and efficient management systems. In recognition to these
efforts and achievements, the National Productivity council (NPC) of
Government of India has conferred Best Productivity Award
FIVE TIMES to the Union, during the last several years.

OBJECTIVES:

Providing assured and remunerative market for all the milk

sold by the farmer members.

Providing hygienic milk and milk products to urban consumers.

Organizing milk co-operative societies at village level and providing

extension services.

To ensure the provision of milk production, inputs, processing

facilities and dissemination of know-how.

To facilitate rural development by providing opportunities for selfemployment at village level, which will prevent villagers migration to
the urban areas and improve the financial situation of villages.

To provide quality Milk and milk products to urban consumers at

competitive prices.

To provide technical inputs like veterinary services, artificial

insemination, supply of balanced cattle feed & seed materials etc., to
milk producers.

To build village level institution in co-operative sector to manage the

Dairy Development Activities.

Cash economy and opportunity for steady income to milk producers.

VISION, MISSION AND QUALITY POLICY

Vision:
We wish to grow into Model Milk
Co-operative in the Country
Mission:
The mission of this co-operative milk producers organization is to eliminate
middle-men and organized institutions owned and managed by the milk
producers by themselves, by employing professionals.

Quality Policy:
Product Profile:
Toned Milk

Butter

Full Cream Milk

Ghee

Homogenized Toned Milk

Peda

Spiced Butter Milk

Curds

Flavored Milk

Cream

Sweet Lassi

Sweet Curds

Price List and Commission Rate of Milk and Milk Products

Sl.
No
1

Products
Name

Package

Toned Milk

500ml

Double
Toned Milk

1000ml
5000ml
Bulk loose
Credit Ins.
250ml

Ghee

Commission
Per lit/kg
[Rs]
0.40

MRP
lit/kg
[Rs]
13.00

Rate/
Unit
[Rs]
6.50
13.00
65.00
12.00
13.00
2.75

12.60
62.50

0.40
2.50

13.00
10.00

1.00

13.00
13.00
12.00
13.00
11.00

10.00
15.40

1.00
0.60

11.00
16.00

5.50
8.00

1000ml
Loose milk
200gms

15.40
14.40
16.00

0.60
0.60
1.50

16.00
15.00
17.50

16.00
15.00
3.50

500gms
Bulk[loose]
200ml
500ml
1000ml
15kg Tin

13.80
13.45
149.09
143.50
139.77
132.39

1.20
0.55
10.91
10.50
10.23
2.61

15.00
14.00
160.00
154.00
150.00
135.00

7.50
14.00
32.00
77.00
150.00
2025.00

500ml
Full Cream 500ml
Milk

Curds

Rate to
the
Retailer
lit/kg[Rs]
12.60

Butter

7
8
9

Peda
Khova
Flavored
Milk
Butter Milk 200ml

10
11
12

100gms
200gms
500gms
250gms
1000gms
200ml

Sweet
Curds
Cream

125.85
125.85
120.45
125.85
125.00
22.00

14.15
14.15
13.55
15.00
15.00
3.00

140.00
140.00
134.00
140.00
140.00
25.00

14.00
28.00
67.00
33.00
140.00
5.00

12.50

2.50

15.00

3.00

100gms

40.00

10.00

50.00

5.00

200gms

80.00

15.00

95.00

19.00

INFRASTUCTURE FACILITIES:
The strategy of Bangalore Milk Union is Procure More, Sell More
and Serve More and reaping the benefits of economies of scale. In order to
realize this strategy, the union has implemented the following projects so
that more and more milk can be procured and processed in this 21st century.
This will help us to serve our producer members by passing on the
maximum benefits; we are consciously adopting the growth oriented
strategy of helping our producers to grow by themselves and growing
constantly.

Capital Investment (In Rupees)

Particulars

Investment

Mega Dairy
Product Block
Vijayapura CC
Solur CC
Anekal CC Expansion
Hosakote CC
Hosakote CC Staff Quarters
Online computerization

39,58,41,893
2,38,00,000
5,38,02,533
2,91,11,710
1,34,07,216
5,69,66,169
95,90,319
75,00,000

PROGRESS AND ACHIEVEMENT OF THE UNION SINCE

ITS INCEPTION

Establishment of the Union

:

Bangalore Co-operative Milk Producers Societies Union Limited

was established on 16th November 1976.

After the bifurcation of the above Union, into two separate union for
Bangalore

Districts (Urban and Rural) and Kolar District,

Bangalore Urban and Rural District Co-operative Milk Producers

Societies Union Limited (BAMUL) on 23rd March 1987.

Bangalore Dairy was taken over by BAMUL on 1st September 1988.

Bangalore Mega Dairy started functioning on 17th December 2000.

MMPO-1992 Registration No 42/R.MMPO/93 dated 7th June 1993

renewed on 13th May 1999.

Bangalore Dairy ISO 9001-2000 Certified by SAI Global a reputed

Australian based company on 19th February 2003.

Bangalore Dairy HACCP IS -15000 Certified by SAI Global a

reputed Australian based company on 19th February 2003.

Organization Status:
The member producers and their Dairy Co-operative Societies
(DCS) are the vital constituents of the Union and their progress is the

judging yardstick on the efficiency of the Unions operation. Hence the

maximum importance has been given to their development.
The Union is making concerted efforts over the years to organize
DCSs in more and more villages of the two districts in the milk-shed area.
Up to now, the Union as organized 1450 DCS, functioning in 2037 villages,
thereby covering 78% of the total villages.

MILK PROCUREMENT DEPARTMENT

MANAGER (P & I)
DEPUTY MANAGER (P & I)

MANAGEMENT INFORMATION
SYSTEM OFFICER
ASSISTANT MANAGER (P & I)

EXTENSION OFFICER I/OFFICER

SENIOR SUPERINTENDENT

EXTENSION OFFICER II/ACCOUNTS/

ADDITIONAL SUPERINTENDENT

EXTENSION OFFICER III

ADMINISTRATION ASSISTANT - I

ADMINISTRATION ASSISTANT II/

SENIOR TYPIST / STENO
ADMINISTRATION ASSISTANT III
TYPIST/DRIVER
MOBILE VETERINARY ASSISTANT
The daily average milk procurement of BAMUL for the period of 2005-06
(till June 2005) was 8.04 lakhHELPERS
kgs, which works out to be 541 kgs per day
per DCS. During the last month the milk procurement touched a peak of
8.95 lakh kgs per day. In Milk Procurement Bangalore Milk Union
Stands FIRST in Karnataka State and SIXTH position in the Country.

Milk Procurement (Average Kgs/Day)

Year

Milk procured (Avg. kgs per day)

1995-96

351799

1996-97

394548

1997-98

404603

1998-99

424483

1999-2000

496732

2000-01

532948

2001-02

546941

2002-03

557819

2003-04

594073

2004-05

713029

2005-06

804223

Bamul is offering the most remunerative milk procurement price to member

producers. The operational efficiency is reflected ion procurement prices
paid to the member producers. The average milk procurement price paid
during the year was Rs. 9.31 for every Liter of Milk supplied to the Union.
Which is 72% of total cost of production.
Milk collected at DCS will be transported to Chilling Centers,
through 93 Milk Procurement Routes, by traveling 14,738 KMs every day.
2 Bulk Milk Cooler (BMC) Routes are also in operation, which collects milk
from 13 BMC centers of 28 DCS directly transported to Bangalore Dairy
through insulated tankers.

804223

900000

713029

MILK PROCUREMENT (Avg. Kgs/ Day)

594073

557819

532948

424483

404603

400000

351799

500000

394548

600000

496732

700000

546941

800000

300000
200000
100000

0
1995-96 1996-97 1997-98

1998-99 1999-2000 2000-01

2001-02

2002-03

2003-04

2004-05

PURCHASE DEPARTMENT
MANAGER
(Purchase)
DEPUTY MANAGER

2005-06

ASSISTANT MANAGER

SUPERINDENT

ADMINISTRATION
ASSISTANT - I
ADMINISTRATION
ASSISTANT - II
STENO/TYPIST

HELPERS

TERMS AND CONDITIONS OF PURCHASE:

PRICE: No enhancement in price during the validity of this contract
will be allowed. Taxes and duties, if specifically agreed will be paid to
the supplier on production of relevant certificates.
Separate Invoices (in triplicate) raised in the name of Managing
Director, Bangalore Milk Union Limited, Bangalore.

 The BAMUL reserves the right to cancel this order. If the cancellation of
the order is due to non compliance by the suppliers with any or all the
terms and conditions of this order, the supplier shall be responsible for
any direct and/ or indirect loss that the BAMUL may suffer in making
alternative arrangements for the materials, without Prejudice to the
Bangalore Dairys right to recover liquidated damages.
The materials will be subject to test and inspection by the BAMUL. The
decision of BAMUL as to rejection of the materials shall be final and
binding on the supplier. The supplier shall be responsible for any
defects in the materials that may develop when they are used arising
from faulty materials, workmanship or otherwise.
Rejections: Any materials rejected by the BAMUL, shall be collected
and removed by the supplier within 15 days from the date of receipt of
information of such rejection at their risk and cost
Risks: The materials shall be supplied at the risk of the Supplier. The
BAMUL does not accept any risk relating to the materials dispatched by
the suppler until they are received and accepted by the BAMUL.
Sample: Samples have to be submitted by the supplier whenever asked
for free of cost.
Demurrage: If due to any delay on the part of the supplier in
negotiating the documents of Bangalore Dairy Bankers or for any other
reason demurrage charges arise, the demurrage charges shall be borne
by the supplier.
The supplier shall submit test certificates, technical specification,
drawings manual etc., free of cost of sought b y BAMUL.

 C forms wherever applicable/permissible will be issued only after the

completion of all supplies or at the end of the financial year for the
supplies made during that financial year whichever is earlier.

Procedure Followed to place an Order:

Value Less than a Lakh

Documents Required: Indent along the note approved by the Managing
Director.
STEPS INVOLVED WHILE PLACING AN ORDER:
1.

Enquiry

will

be

made

with

the

Registered

manufacturers, Dealers/Distributors/Suppliers etc.,

2.

Preparing Comparative Statement of the offers

received.

3.

Samples

Quality

checking

wherever

samples

obtained.
4.

Rate Analysis.

5.

Placing before the Purchase Committee for decision

and then obtaining approval of the Managing
Director or direct approval from the M.D. depending
upon the sequences.

6.

Placing Purchase Orders/Work Order.

7.

Quality checking after Receipt of the material.

8.

Acceptance.

9.

Payment as per Terms and Conditions.

STORES DEPARTMENT
In BAMUL all the raw material needed for the purpose of production except
the main item raw chilled milk: all other raw materials are kept in the stores

department. It is having four different and very spacious stores. The same
are as follows:

Store No.1 for consumables.

Store No.2 for oil and Lubricants.

Store No.3 for Stationery.

Store No.4 for Machine and Repairs.

A List showing some of the items kept in the Stores Department:

LDPE Film for Milk Curds, Ghee, Peda
Parchment paper for Peda, Butter
Duplex Cartons for Butter salted and unsalted
HDPE Crates
Disposable Cups, Hand gloves
Ice-cream cones
Sugar
Caustic Soda Flake
Soda Ash
Nitric Acid
Vacuum Salt for Butter
Aluminum Foil
Essence Mango, Chocolate, Orange, Vanilla
Colour Lemon yellow, Chocolate
The Stores Department receives the delivery of the goods from
different suppliers as per the order placed by the Purchase Department. If
the goods are not as specified in the purchase order then they are sent back
to the suppliers.

The Stores Department supplies the raw materials to the production

department as and when they receive orders from the production
department.

Functions of Stores Department:

Physical control of Materials.
Preservation of stores.
Minimization of obsolescence & damage through Handling.
Disposal & Efficient Handling.
Maintenance of stores records.
Reconciling the materials with Book figures.
Books or Registers maintained by the Stores Department:

Purchase Indent

Goods Receipt Register

Material Receipt Register

Kardex

Material Issue Register

Rerecord Note

Issue Indent

QUALITY CONTROL
MANAGER
(Quality Control)
DEPUTY MANAGER
(Quality Control)

ASSISTANT MANAGER
(Quality Control)
TECHNICAL OFFICER
(Quality Control)

CHEMIST - I
CHEMIST - II
CHEMIST - III
HELPERS

3QUALITY POLICY
As per the PFA Act of Government of India, Nandini Milk contains

prescribed levels of fat and milk SNF (proteins, lactose, vitamins, minerals
etc). Today Nandini is the only packed milk, which is being distributed with
the health of the consumer in mind.

Bangalore Milk Union is committed to meet ever changing needs of its

customers by adopting best standard and cost effective methods in
procuring, processing and marketing high quality milk and milk products at
reasonable prices.

QUALITY OBJECTIVES:

Improve the quality of raw milk being received by the Union.

Ensure that all the batches of milk and milk products to be to the
market conform to the standards stipulated under Bureau of Indian
Standard Prevention of Food Adulteration Act and AGMARK.

Achieve better plant efficiency by carrying out all the maintenance

schedules in time.

Achieve cost competitiveness by reducing the water consumption

and energy consumption in the plant to a maximum extent.

Maintaining a high standard of house keeping by adopting 5-S

concepts in the plant.

Improve Consumer Satisfaction Index.

Functions:

Testing of incoming materials and consumables.

Analyze for Fat and soluble Non fat (SNF) of the incoming milk.
Analyze of the incoming milk for chemical and microbiological
standards.
Check the quality of milk that is in process control
Testing of packing materials.
Testing of detergent and other cleaning and sanitizing chemicals.

QUALITY CONTROL:

When the raw chilled milk is brought to the Bangalore Dairy in milk
tankers before it is processed production to the production department, a
sample of milk from each tanker is taken and tested by the quality control
department. If the milk is not as per the standards prescribed then the milk is
sent back to the suppliers.
Hazard Analysis and Critical Control Point (HACCP) have certified the
Quality Control of BAMUL.
Good Manufacturing Practices (GMP) has also certified it.
The registration covers with the food safety management system for the
manufacturing and marketing of pasteurized milk, raw chilled milk and
curds.
The quality control department also complies with the requirement
of AS/NZS ISO 9001:2000 Quality Management System registered by SAI
Global Limited, Sydney NSW Australia.
Some of the Reports generated and Records maintained in this
department are:

Raw milk Analysis Report.

Pasteurized milk analysis Report.

Incoming /outgoing Tanker Milk Report.

Curds Analysis Report.

Daily Hygiene Report.

Auditing Report.

PRODUCTION DEPARTMENT
MANAGER

DEPUTY MANAGER
ASSISTANT MANAGER
TECHNICAL OFFICER
(Dairy Technician)

DAIRY OPERATOR - I
DAIRY OPERATOR - II
DAIRY OPERATOR - IV
HELPERS

Production Department is one of the most important departments for any

industrial organization. The task of production department is not only to
produce products of specified quality but also within the desired time and
most economically. Management must first access the existing capacity and
if it is not adequate, consider how much to increase or decrease the
production capacity that is by purchasing additional facilities, providing
over time facilities to the existing workers of selling the existing extra

machines. The next step is scheduling to facilitate flow of production. The

necessary manpower needed to run the machine and the procurement of raw
material is other elements controlling the models is other elements
controlling the production (man, material and machine will enable the
organization to produce the required goods).
The production is the process by which goods and services are created
production involves manufacturing of finished goods. It requires particular
process of work to produce the product. Production Management involves
grouping all the factors of production together and putting them to optimum
is in order to realize.
Production unit of the Mega dairy is concerned with only Milk & Curd
production.
There are 3 shifts starting from morning 6 A.M.

1st shift from 6 A.M. To 2 P.M.

2nd shift from 2 P.M. To 10 P.M.

3rd from 10 P.M. To 6 A.M.

Objectives:

Improve quality milk received from the chilling centers.

Achieve energy efficiency of furnace oil, electricity and water.

Controlling the fat and SNF content of milk.

Ensure timely and sufficient quality of production and dispatch of milk

and milk products to the market.

Maintain high level of hygiene in the plant.

Redressing the consumer complaints of milk and milk products.

Good house keeping.

Better utilization of manpower.

Functions:

It determines the layout facility in the organizations.

It maintains the plants and machinery used for the production

purpose in a good condition.

It helps the determination of product design and process

design. It formulates production operation planning and control.

It maintains and prepares the concerned account regarding its

input and output.

It corrects the deviation from the standards if any.

It upgrades the technical efficiency of production.

It provides information to management regarding process,

methods, plant, machinery and quality control.

It maintains a car dial relationship with research and

development department as each and every step in the production
process has to be sent for quality control.
PROCESSING MILK
After the commissioning of Mega Dairy the receiving of milk in cans

at Mega Dairy has been stopped. Now the milk collected from the villages
is immediately sent to the near by chilling centers as milk, in its natural
state, contains numerous micro organisms which double in every 15 to 20
minutes which leads to deterioration of milk., to avoid this and ensure good
quality raw milk, the milk is chilled and the chilled milk is transported from
these chilling centers to Mega Dairy by tanker. At the dairy society, a milk
sample is taken and tested for the Fat and SNF percentage and any impurity.
Testing of milk sample is done using Gerber method of testing milk fat and
lactometer for SNF.

In many village coops now milk is tested using

electronic milk tester and SNF analyzers. Farmer members are paid on the
quality of the milk they pour (fat and SNF %age in milk) rather than the
quantity of milk poured alone.

Once the milk is procured by the village dairy co-operatives and sent in
clean milk cans/milk trucks to the district union dairy where it is subjected
to some organoleptic tests, sampled, weighed and tested before processing.

MILK PROCESSING
The milk received from the village society is processed and packed by
the district union before it reaches the consumer. The different stages of
processing are:
1.

COOLING
On arrival at the dairy/chilling centre, milk is immediately cooled 4-6

degree C and stored in storage tanks/silos.

2.

CLARIFICATION

The chilled milk from the silos goes to the clarifier after preheating. The
clarifier spins the warm milk at a high speed, removing dust and dirt
particles invisible to the naked eye.
3.

PASTEURIZATION
The milk is then pasteurized. Named after Louis Pasteur, a French

Scientist who invented the process for use in wine, pasteurization was first
applied to milk by Dr.Soxhlet of Germany. This involves heating the milk
to 72 degree C and holding at this temperature for 15 seconds.
Other equivalent time-temperature combinations may also be used.
After heating and holding, the milk is rapidly cooled at a temperature of 7
degree C or below. Pasteurization of milk results, in heat destruction of all
the pathogenic [disease causing] bacteria and about 90% reduction in the
number of spoilage bacteria. The surviving bacteria do not get opportunity
to proliferate due to the rapid cooling of milk after heating. Pasteurization

inactivates even the TB bacteria. Therefore, it is always healthy to drink

pasteurized milk.
4. HOMOGENIZATION
The milk then proceeds to a homogenizer. This is where the large size fat
globules present in milk are broken down into tiny particles of less than 2micron size. The reduced size fat globules cannot rise to the top in the milk
to form a cream layer. The milk fat gets evenly distributed, thus also
making the milk appear whiter and thicker. Homogenization is done for
consumers who do not like cream layer (malai) on top of the milk.
However, for those who like malai in milk, it is not homogenized.
5. STANDARDIZATION
Milk from breeds of cows and buffaloes may vary in its composition.
Hence, to make of uniform composition for supply to market it is
standardized by raising or lowering, of the fat and/or solids-not-fat
percentages of milk to a desired value, so as to conform to the legal or other
requirements prescribed.
Milk from different breeds of cows and buffaloes may vary in its
composition. Hence, to make milk of uniform composition for supply to
market it is standardized by raising or lowering, of the fat and/or other
requirements prescribed.

6. PACKAGING
Traditionally the co-ops used to pack milk in glass bottles. However,
now all co-op milk is packed in plastic pouches/tetra packs/bulk vending
etc.,

PRODUCTION PROCESS
Receiving milk
From milk cooperative
producers

Milk is chilled in
chilling centers and
sent to dairy through
tankers

Each tanker is
weighed at the
Weigh bridge and
the milk is tested

Heating at 78 o C
and maintained at
45 o C

Regeneration
Pasteurized 5 o C
then to Separator

Milk is unloaded to
raw milk silos [4
silos each with a
capacity of 1 lakh
liters]

Chilling of milk at
5 o C in Pasteurizer

HMST where
Pasteurized milk is
Stored

Packing
Section

Dispatching
Section,
Milk kept at 5 o C
In the cold
storage

Some of the Machines used for production process are:

1. Milk reception lines.
2. Milk chillers.
3. Milk pasteurizes.
4. Homogenize.
5. Cream separators.
6. Stando meter.

7. Milk silos.
8. Horizontal milk storage tanks.
9. Creams pasteurize.
10. Milk packing machines.
11. Conveyer belts and chains.
12. Crater and can washers.

MARKETING DEPARTMENT
MANAGER
(Marketing)
DEPUTY MANAGER
(Marketing)
ASSISTANT MANAGER
SR.
DESPATCHER
MARKETING ASST:(Marketing)
ADMINISTRATION/MARKETING
MARKETING
ZONAL
SUPERINTENDENT
OFFICERS/OFFICERS
ASSISTANT
- IIIII
CIRCLE INSPECTOR

ASSISTANT - I

PEONS/HELPERS

OBJECTIVES OF MARKETING DEPARTMENT

The primary objectives of marketing are to satisfy their customer
because CUSTOMER IS THE KING OF MARKET, one of the
objectives is to distribute goods form the producers to the customers. It will
make some one to sell something to some one. Marketing also creates
demand in the market for the product, without marketing activity; one
business cannot serine in the market. Marketing plays a very prominent role

in determining the future abilities of industries. It provides opportunities

and new ideas to move up the proposition of sales but it also involves the
comparison of the increase sales with previous ones. The main purpose of
analyzing the marketing department is to know the actual market capture by
the company and their necessary activities to be taken to over come the
drawbacks of less demand for the products.
The objectives are; o To organize the sales department in a well manner.
o To organize develop the market far cost regularly.
o To take required steps to improve the market share.
o To prepare sales budget.
o To conduct consumers survey regularly.
o To facilitate system of performance liked with reward for salesman.
o To plan the advertising campaign well and to make it
Effective.

FUNCTIONS:
Procurement of milk from the 1400 primary societies [both urban &
rural] i.e. dairy co-operative society (DCS).
The basic function of this department is to know the consumer needs
and to plan the production of such products.
It fixes the prices for each production in consultation with the top-level
management.

The prices are fixed based on the competition and

according to the government policies.

Selection of agents and calling tenders for parlors.
Distribution of milk to local areas and distant places.
It undertakes promotional measures to increase sales.
Issuing the indents of dispatch to the person who has purchased the
products.

DISTRIBUTION CHANNELS:
Through agents.
Through credit institutions.
Through special supply.
Through milk parlors.
Through wholesale dealers.
There are 860 milk distribution agents, 13 parlors, 40 booths 250 day
time counters, 123 credit institutions, franchise outlets. The milk is supplied
to these retailers and credit institutions through transport vehicles. There are
100 vehicles; they are hired on contract bases. In the evenings the milk is
distributed in Autos.
PAYMENT SYSTEM
o CASH and CARRY system
o Challan System
o Cheque System [10 days time]
o Retailers have to keep a deposit of Rs 13000
o Payment by credit institutions is done on monthly basis.
Some of the credit institutions are:
Hotels
o Windsor Manor, Ashoka, Gateway, Capital
Hospitals
o Referral, Ghosha, Sanjay Gandhi Hospital, NIMHANS.
Maternity Hospitals:
o Banshankari MH, Gavipuram Gutthali MH, Sirsi Circle MH,
Magadi MH, Cox town MH, Austin Town MH, Wilson Garden
MH, Jayanagar MH.
BEML, Bharat Heavy Electrical Limited, Vidhansoudha

 Bangalore Medical College

ISKON [Akshay Patra]
New Central Jail, Kumara Krupa guest house
Maharani science hostel

Graph showing the Average Milk Sales per day

Graph showing the Average Milk Sales per day

300000

514494

484707

448689

431663

438146

434375

434250

387406

350723

400000

309967

500000

419588

600000

200000
100000

0
1995-96

1996-97 1997-98

1998-99 1999-2000 2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

514494

484707

Graph showing Average Full Cream Milk Sales per day

300000

448689

431663

438146

434375

434250

419588

350723

400000

309967

500000

387406

600000

200000
100000

0
1995-96

1996-97 1997-98

1998-99 1999-2000

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

50882

Graph showing Average Curd Sales per day

60000

38034

273999

21692

18054

14490

8208

8586

10000

4495

20000

11139

30000

18887

40000

32825

50000

0
1994-95 1995-96 1996-97

1997-98 1998-1999 1999-2000 2000-01

2001-02

2002-03

2003-04

2004-05

SALES PROMOTIONAL ACTIVITIES:

Around 22 Consumer Awareness Programmes were conducted in the
different parts of the city. Local medical doctors and dairy experts
were invited to make presentations towards milk and milk products and
awareness if the same is adulterated.
35000 consumers and school children visited the Mega Dairy. Buses
were arranged for the said visit and it is continuing.
100 glow sign boards were distributed.
3500 tarpaulin bags were distributed to door delivery boys.
Around 300 HIP boxes, 3000 PVC banners, 400 Sign boards, 4000 Sun
pack boards were distributed to different outlets to strengthen the
supply.

SOCIAL AWARENESS PROGRAMS BY BAMUL

2005-06

To become model milk co-operative in the country BAMUL is

conducting following programs.
BAMUL welcomes all the people of Bangalore and around places who
are interested to see the Dairy.
Special team and bus is made to the people especially Mahila Mandals,
who want to see the Mega Dairy and the production process of milk.
They will be brought to the Dairy and make them feel that it is their
Dairy in such a way that they will be treated and then explanation of
complete production process will be given.
BAMUL conducts milk testing programs periodically in all the areas of
Bangalore in which consumers can bring any brand of milk for testing.
After testing, fat content and SNF content will be made known to them.
By this consumer will be convinced about the quality of the milk.
If any customer has any complaint about the quality and thickness of the
milk he/she contact to the dairy and concerned department employees
will immediately try to solve the problem.
Periodically inspection will be conducted in which quality of service
given by the agents and milk supplying vans will be checked.

FINANCE DEPARTMENT

MANAGER
(Finance)
DEPUTY MANAGER

ASSISTANT MANAGER

ACCOUNT OFFICER

SUPERINTENDENT

ACCOUNT ASSISTANT - I

ACCOUNT ASSISTANT - II

PEONS/HELPERS

Finance is the lifeblood of any business activity.

This department is

concerned with the raising of funds from various sources and application of
the same.

 OBJECTIVES:

To know the financial position of the company year after year.

To maintain the inflow and outflow of the funds.

To have a clear picture of working capital requirement.

It acts as a liaison between the company and banks as well as financial

institutions.

To divert the idle funds towards more fruit gaining activities.

To find out the various casts involved in each activity and to take cast
control techniques.

To monitor the budget and budgetary control techniques.

To maintain necessary liquid funds.

To estimate future fund requirement so that the company does not suffer
from financial crisis.

Finance Department In BAMUL:

It prepares and maintains Journal Books, Ledger Accounts, Profit and
Loss Account, Balance sheet every year.
The department analysis the financial position of the organization by
maintaining the required records and by preparing & analyzing the
financial statement of the company.
It makes calculation and decisions regarding the funds of the company.
It calculates the future requirements of funds and make decisions
regarding such funds.
It assesses the working capital requirement of the company.
It find out the ways means of raising the required capital.
It takes decisions regarding investment of funds.
It provides the relevant information to the persons concerned of other
departments of the company.

1033.54

2002-03

1033.57

1019.655

2001-02

458.36

458.29

458.23

600

458.15

800

458.09

1000

1008.914

1000.05

1200

999.645

SHARE CAPITAL IN THE RECENT YEARS

400
200

0
1994-95

1995-96 1996-97

1997-98

1998-1999

1999-2000

2000-01

2003-04

2004-05

The Union has achieved a record turnover of Rs. 324.65 Crores in the
year 2004-2005 as against Rs. 278.73 Crores for the year 2003-2004.
Union has earned a Net Profit of Rs. 3.87Crores for the year 2003-04
as against Rs. 2.29 Crores during 2002-03. This improvement in Net
Profit is achieved due to improvement in managerial efficiency,
energy management, market development and quality excellence.

32465.00

27873.76

Annual Turn-over (In Lakh Rupees)

19776.20

2002-01

2001-02

25323.43

23232.00

10000.00

22072.93

150000.00

12257.98

10282.28

20000.00

15438.89

25000.00

17125.33

30000.00

22536.30

35000.00

5000.00

0.00
1994-95

1995-96

1996-97

1997-98

1998-99

1999-2000

2002-03

2003-04

2004-05

514494

Net Profit (In Lakh Rupees)

177.31

35.73

73.93

100

84.1

150

113.86

200

113.33

189.84

250

228.52

237.58

300

278.73

350

50

0
1994-95

1995-96

1996-97

1997-98

1998-99

1999-2000

2002-01

2001-02

2002-03

2003-04

2004-05

NET PROFIT (IN LAKH Rs)

YEAR

PROFIT

1991-92

-84.09

1992-93

-68.82

1993-94

-5.45

1994-95

84.14

1995-96

189.84

1996-97

113.33

1997-98

113.86

1998-99

177.31

1999-2000

237.58

2000-01

73.93

2001-02

35.73

2002-03

228.52

2003-04

278.73

2004-05

324.65

HUMAN RESOURCE DEPARTMENT

DEPUTY MANAGER
(Administration)

ASSISTANT MANAGER
(Administration)

ADMINISTRATION, TIME, LABOUR OFFICER

PRO, PERSONAL SECRETARY,
OFFICE MANAGER

SUPERINTENDENT

ADMINISTRATION ASSISTANT I
MARKETING ASSISTANT

ADMINISTRATION ASSISTANT II
SENIOR TYPIST & STENO

ADMINISTRATION ASSISTANT III

INTRODUCTION
Human resource is the most valuable and long lasting resource to
any organization. Manpower is an important resource, so it is very much
necessary to utilize this resource in the most effective and efficient way. If
human resource is handled in a proper manner then other resources are
properly utilized. As the saying goes Mind your man your man will mind
all other things.
Human resource is concerned with the people dimension in
management. Since every organization is made up of people acquiring their
services, developing their skills, motivating them to higher levels of
performance and ensuring that they continue to maintain their commitment
to the organization are essential to achieving organizational objectives. This
is true, regardless of the type of organization government, business,
education, health, recreation, or social action.
Human resource management is the planning, organizing, directing
and controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end that individual,
organizational, and social objectives are accomplished.
Of course it is a Herculean task to maintain the human resource to
keep them satisfied and take out the work from them. In Bangalore Dairy
public relation officer is in charge of this department.

Mainly the

employees in the Bangalore Dairy are classified into two categories:

technical staff and non-technical staff.
Technical staff includes the factory workers, supervisors, technicians and
engineers.
Non-technical staff includes mainly the office staffs that are in charge of
the administration department.
Total number of employees in BAMUL is 999.
Total number of Female employees in BAMUL is 115.
Total number of male employees in BAMUL is 884.

Number of employees in each department

Name of the Department
Production
Quality
Marketing
Engineering
Security
Purchase
Stores
Health
Time office
MIS
Procurement and Input
P&I Accounts
EST
Canteen
Finance Audit
Finance Bills
Finance Sales
PRO
Anekal Camp
Bangalore South Camp
Channapattana Camp
Devanahalli Camp
Doddaballapura Camp
F&S
Hosakote Camp

No. Of
Employees
168
21
123
168
29
16
15
26
12
6
35
12
33
15
6
20
20
9
12
22
13
17
16
3
14

Kanakapura Camp
Nelamangala Camp
Solur CC
Yelahanka CC
Anekal CC
Byrapatna CC
Doddaballapura CC
Hoskote CC
Sathnur
Vijayapura CC

10
11
10
14
18
21
20
28
16
17

Classification of Employees:

Permanent employee
Is one who is on the permanent rolls of the union against on the
specific cadre and enjoying all such benefits as specified. Under this
rule or such benefits that may be excluded from time to time.
Employees who are recruited are deemed to be the permanent employee
subject to declaration of probation and confirmation by an order.

A Probationer employee
Is one who is provisionally employed to fill a permanent Vacancy in
a post for a period of probation which will not exceed two years on
aggregate and whose name is entered on the probationary employee.

Apprentice
Is a learner who is engaged to undergo apprenticeship training and who
is paid a stipend and whose terms and conditions of apprenticeship are
governed by the provisions of the Apprenticeship Act of 1961. The
union dairy is not obliged to employee him on completion of his
apprenticeship period.

RECRUITMENT
Procedure for appointment (In case of direct recruitment)

 If it is by a competitive examination after giving adequate publicity as

the appointing authority may determine in the order of merit subject to
reservation in rule 3.6 from the list of candidates prepared by the
selection committee or expert panel.
If it is by selection, after giving such adequate publicity in leading
newspaper at least one in Kannada and English to the recruitment as the
appointing authority may determine in the order of merit subject to
reservation in rule 3.6 from the list of candidates prepared by the
selection committee or expert panel.

In case of promotion:
Here a person is selected on the basis of merit and suitability in all
respects to discharge the duties of the post with due regard to seniority
from among the persons eligible for promotion.
The candidate for promotion will be screened by the EPC
prescribed for the purpose of the bye-law of BAMUL.
Roster
While considering the promotion the roster as prescribed by Govt of
Karnataka from time to time shall be adhered to. Automatic grant of special
promotion to senior scale of pay is awarded if an employee has put in total
continuous service not less than 15 years of service in the same post held by
him on the date of commencement of rules.

Age limit
For Direct Recruitment:
Must have attained the age of 18 years and not attained the age of 35 years
in case of persons belonging to schedule caste or schedule tribe. In case of
other than SC/ST they should not have attained the age of 32 years as
prescribed by the Government.
Compassionate Appointment:

In case of death of employee while in service instead of employing the

dependents, monetary compensation is provided to them.

Selection Committee:
President of BAMUL
Managing Director of BAMUL
One person representing the board of directors from Karnataka Milk
Federation
One person representing the board of directors from National Dairy
Development Board.
One person representing the board of directors from Registrar of cooperative societies.

Service benefits:

Two pairs of uniforms are provided to all the permanent employees

every year. The uniform is the same and compulsory for all employees
irrespective of their designation except security guard.

Stitching

charges are provided for men it is Rs.250 per head per year and for
women it is Rs.90 per head per year.

Shoes, socks and badges are also provided to all the permanent
employees.

Leather belt, cap, whistle, long raincoat, sweater is provided to security

guards.

Allowances
Conveyance Allowance:
Cost of 30 liters of petrol per month is given to the employees having
motorcar.
Employees having Motorcycle/scooter are paid the cost of 20 liters of
petrol per month.
Cost of 10 liters of petrol per month is paid to the employees owing a
Moped.

 Employees who do not own a vehicle are paid the cost of 5 liters of
petrol per month as conveyance allowance.
Shift Allowance:
Shift Allowance is paid to the workers who are working in
production department as the production works in three shifts. The shift
allowance is as follows:

1st shift from 5 A.M. To 1 P.M. Allowance paid is Rs.3.50. per day

2nd shift from 2 P.M. To 10P.M. Allowance paid is Rs.2 per day.

3rd shift from 10 P.M. To 6 A.M Allowance paid is Rs.3 per day.

Heat Allowance and Cold Storage Allowance:

Boiler Section-Rs.1 per day plus 250ml of milk for self-consumption
on duty.
Incentives:
For the employees of marketing section at the rate 0.50 paisa per day
for morning dispatches.
LEAVE FACILITIES:

Earned Leave: 30 days earned leave in a year for a maximum of

240 days.

Casual Leave: 15 days in a year not more than 7 days in a stretch.

Maternity: 2 months can be applied but it can be extended up to 3

months only twice in the entire service this leave facility can be
availed.

Half Pay Leave: 10 days of full pay leave or 20 days of half pay
leave in a year can be availed.

Extraordinary Leave: This leave facility is only for permanent

employees.

When no other leave facility left to his credit, a

maximum of 10 months and at time not more than 60 days and not
more than 5 times in the entire service this leave facility can be
availed.

General and festival Holidays, Sundays, second Saturdays and other

holidays declared by the government.

Having worked on second Saturday an employee can avail:

Leave within 60 days or

The cash benefit

Overtime

An employee having a pay scale of Rs.1280-23.75 or more is

eligible for this facility as per The Factory Act 1948.

OTHER FACILITIES:
Canteen facilities are provided at very cheapest rate.
Category
Employees
Contract Labors
Visitors

Meals
2.00
5.00
10.00

Tiffin
1.00
4.00
4.00

Twice tea/coffee is provided to all employees.

Quarters facilities.

Bonus is given to all employees.

Two pairs of uniform (shirt and trouser for men), Rs. 800/- to purchase

shoes at specified showroom, two pair of sarees with blouse (for women) &
Rs.450/- is given to womens to purchase slippers at specified showroom.
Attendance bonus:
For an employee who is regular, a bonus of Rs.30 per month is given
and also once a month 1 hr late coming permitted.

Milk at subsidized rate:

An employee is provided milk at subsidized rate each employee-500ml of
milk per day at 50% of sales price between Jan to Oct and 1 liter of milk per
day at 50% price during November and December.
Free Supply of Ghee-: 500 gm free of cost for two declared festivals per
year.
Group Saving Life Insurance Scheme to permanent employees-with LIC
India Provident Fund- as per the employee PF and Family Pension Fund act
Bonus-as per Bonus act 1965, amended by Govt., of India from time to time.
Dearness allowance: as per with Govt., employees as in the state govt order.
PAYSCALE: (IN RUPEES)
MANAGING DIRECTOR: 12,800 16,720
GENERAL MANAGER : 10,620 -- 14,960
MANAGER

: 9,580 -- 14,200

DEPUTY MANAGER

: 8,400 -- 13,440

ASSISTANT MANAGER: 7,400 -- 13,120

OFFICERS

: 6,000 11,200

SUPERVISORY STAFF : 5,575 10,620

GRADE 1 EMPLOYESS : 4,575 8,400
GRADE 2 EMPLOYESS : 3,850 7,050
GRADE 3 EMPLOYESS : 3,000 5,450
GRADE 4 EMPLOYESS : 2,500 3,850
Maintenance of service register/Personnel files
Particular of the employees.
History of services.

 Pay scale/increment/advance increment/stagnation increment.

Particulars of leave availed including leave encashment/maternity
leave/miscarriage etc.
Advances sanctioned such as for car/cycle/moped etc.
Particulars of record of rewards, praise, punishment or censure
including suspension.
Place of posting.
Name/age of family members of medical/HTC/LTC.

Performance Appraisal:
Performance appraisal is a formal structured system of measuring and
evaluating an employees job related behaviors
And outcomes to discover how and why the employee is presently
performing on the job and how the employee can perform more effectively
in the future so that the employee, organization and society all benefit.
In BAMUL, the head of each department makes appraisals with
regard to each employee once in a year.
The boards of directors have fixed certain performance standards and the
department heads compare these standards with the actual performance of
the employee so that they can inform the higher authority which helps them
to take decisions with regards to:
Promotions and demotions
To confirm the services of the probationary employees upon their
completing the probationary period satisfactorily.
To let the employees know where they stand so far as their
Performance is concerned.
To assess the training and development needs of the employees.

 To conduct programs such as selection, training and transfers.

Annual confidential report/assessment report

Concerned authority should write employees annual confidential
report annually. Adverse remarks if any for all categories the MD BAMUL
shall be appellate authority for reviewing the adverse remarks and shall be
communicated to the concerned employees imperiously. The final decision
on the employees representation against adverse remark will be
communicated to the concerned employee within 3 months.

MISCONDUCT:

Willful in subordination or disobedience

Theft, fraud, dishonesty or causing damage or loss to BAMUL,

Taking or giving bribes, illegal gratification,

Absence without leave or permission letter.

Drunkenness, disorderly behavior engaging in private work or trade

in BAMUL premises,

Canvassing for party membership within BAMUL,

Sleeping while on duty,

Gambling, smoking in the prohibited area,

Conviction by a court of law for any criminal offence involving

moral turpitude,

Carrying any lethal weapon, fighting, quarreling using abusive

language, picketing or demonstrating,

Falsification of record, impersonation, indulging in political

activities in the premises of BAMUL.

PUNISHMENTS:
Punishments include warnings, censure or reprimand, fine, penalty,
postponement of increment, reduction in grade or reversion or demotion to a
lower grade. Dismissal without notice or any payment of wages.

Termination of employment:
Daily wages or monthly wages employees may be terminated if no
longer required in the interest of BAMUL without violating the law.
A temporary, daily rate, casual employee, part time employee,
trainee, or an apprentice irrespective of mode of payment of his/her
wages, not put in 240 days of continuous service including Sundays
and holidays may be terminated without any notice and any reasons
assigned thereof.
If found guilty of any misconduct or any act described in conduct
rules may be dismissed-shall not be entitled to any notice or wages.
Retirement: At the age of 58 years or 25 years of service.
Voluntary Retirement Scheme:
VRS was introduced in the year 2002. An employee must have completed
10 years of service to become eligible for applying for VRS as and when
called for.

CONCLUSION
Bangalore Dairy is the biggest dairy in South India. Most
beautiful & advanced De plant in India. Fully computerized & fully
automated, State-of-the-Art technology adopted. Mega dairy offers
the best quality milk in Bangalore-PURE & FRESH. Highest retail
seller of milk & seller of curds [dahi] in India over 4,50,000 liter of
milk/day & 40,000 kgs curds per day.
The Bangalore milk Union is marketing milk and a milk
products in the name of Nandini is the best quality. It has been
catering the needs of about 70% of the population of Bangalore.

The company should lay emphasis on modernization and product

diversification by which the company can meet the fast changing
requirements of the markets and to keep on with the competitors.
Now a days, competitors have been entering into this field in order
to exploit the utility of this industry.
The strategy of Bangalore Milk Union is to PROCURE
MORE, PROCESS MORE, SELL MORE, AND EARN MORE,
Reaping the benefits of economies of scale.

RECOMMENDATIONS
The following suggestions may provided to enable BAMUL expand
its market share and maintain the present market leadership as well
as to improve its position in the future years.

There should be more number of Nandini milk parlors in

Bangalore city and outside.

The company should adopt proper and adequate channels of

distribution.

Organization should try to improve the packaging of the product

to prevent leakage.

Organization should try to adopt more and more new technology

and methods of production to survive in this competitive market.

The company should provide some attractive schemes for the

regular consumers as well as retail sellers.

Organization must try to keep the surroundings of Bangalore

Dairy clean.

BAMUL must

adopt

professionalism

in

its

all-working

departments.

Facilities and benefits for Agents, Retailers should improve still

better. So that the turnover of the Retailers will be reduced and
market shares will be increased.

It must guide the consumers regarding its products by giving

various Demonstration programmes.

Online computer systems (website) have to be created by the

organizations faster.

HRM

department

must

organize

personal

development

programmes such that the employees are trained efficiently to

improve their skills and ability to perform the job.

HRM department should arrange activities that establish

employee relations.

HRM department should make sure that right employees are

selected for right jobs at right time.

Training activities are to be conducted by making contract with

software companies such that the employees adopt skill about system
administration.