Bangalore Urban, Rural & Ramanagara

Districts Co-Operative Milk Producers

Societies Union Ltd.,
Dr. M H Marigowda Road, Dhrmaram College Post,
BANGALORE – 560 029
An ISO 22000:2005 & ISO 9001:2000 Certified

Bangalore Dairy

A Brief Progress report

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 Bamul at Glance
An ISO-22000:2005 & ISO-9001:2000 Certified
Procurement & Input
Milk Producers Co-operative Society (MPCS) 2157
Women Milk Producers Co-operative Society (WMPCS) 221
Inhabited Villages 3519
Milk Producer Members 3,49,276
Milk Procurement Routes + BMC Routes 170
Artificial Insemination Centers Single 191
Cluster 186
Processing Plants Capacity/Day (In Lakhs) Procurement/Day
(In Lakhs )
Bangalore Dairy 10.00 13.43
Hosakote Dairy 2.00 1.89
Byrapatna Chilling Center 2.00 1.78
Doddaballapura Chilling Center 1.60 1.31
Anekal Chilling Center 1.00 0.81
Solur Chilling Center 1.60 1.85
Vijayapura Chilling Center 1.00 1.15
Kanakapura Chilling Center 1.20 1.40
Bulk Milk Coolers 4.75 5.16
Marketing & Sales
Number of Distribution Routes 352
Retailers 1932
Whole Sale Dealers -
Franchisee Outlets 81
Milk Parlors 47
Transporter Cum Distributor -
Finance 2016-17
Total Share Capital (2016-17)(Rs in Lakhs) 4537.82

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Annual Turnover (2016-17) (Rs in Lakhs) 179137
Net Profit (2016-17) (Rs in Lakhs) 3031.48

INTRODUCTION:
The Bangalore Milk Union Ltd., (Bamul) was established during 1975 under
Operation Flood II by keeping “Amul” as its Roll Model. At present Bamul has Bangalore
Urban, Bangalore Rural & Ramanagara Districts of Karnataka State as its area of operation
for Milk Procurement and selling Milk in part of Bruhath Bangalore Mahanagara Palika
(BBMP) area. Since its inception the Union is constantly striving further for dairy
development and marketing activities in its milk shed area.

OBJECTIVES:
 To organize Milk Producers Co-operative Society (MPCS) at Village level and
dissemination of information like good dairy animal husbandry and breeding
practices & Clean Milk Production through Extension Services.
 To provide assured market & remunerative price for the milk produced by the
farmer members of the co-operative societies.
 To provide technical input services like veterinary services, artificial
insemination, supply of balanced cattle feed & Fodder seed materials, Milking
machines, chaff cutters, Cow Mats and Model cow shed, AMCU and Testing
equipment etc., to milk producers/MPCS.
 To facilitate rural development by providing opportunities for self-employment
at village level, thereby preventing migration to urban areas, introducing cash
economy & opportunity for steady income.
 To provide quality Milk and milk products to urban consumers at competitive
prices.
 To facilitate the milk producers and their family members, MPCS staff and public
through BAMUL Trust from 2008.

BACKGROUND:
On January 1st 1958 a pilot scheme to cater the Bangalore Milk Market, Department
of Animal Husbandry, Government of Karnataka was started Milk processing facilities &
Veterinary Hospitals at National Dairy Research Institute (NDRI). Later in 1962, The
Bangalore Milk Supply Scheme came into existence as an independent body. With the
great efforts by the then Hon’ble Minister for Revenue & Dairying, Government of Mysore
Sri M V Krishnappa, A joint venture of UNICEF, Government of India & Government of
Mysore was dedicated Bangalore Dairy to the people of Karnataka State on 23 rd January
1965 by the then Hon’ble 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. Bangalore Dairy underwent a structural change in
December 1975, handed over to Karnataka Dairy Development Corporation (KDDC).
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Rural Milk Scheme of Mysore, Hassan & Kudige Districts was started 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.

As per the policies of the National Dairy Development Board (NDDB), Bangalore
Dairy was handed over to Bangalore Milk Union Ltd., (Bamul) on 1 st September 1988. The
Union is capable of processing the entire milk procured, by timely implementation of
several infrastructure projects like commissioning of New Mega Dairy state-of-the-art
technology with a processing Capacity of 12.00 Lakh liters per day, New chilling centers,
Hoskote dairy with processing Capacity of 2.00 Lakh liters per day, New product block,
Upcoming Kanakapura Dairy (Ongoing Project)etc.,

The milk shed area of Bamul comprises of 2611 revenue villages. As of now the
Union has Functioning 2150 Milk Producers Co-operative Society (MPCS) among them 221
are Milk Producers Women Co-operative Society in 3,519 villages in these three districts.
In these MPCS’s, there are 3,57,099 registered milk producer members. Among them
1,26,257 members are women and 60,710 members belong to Schedule Caste and Schedule
Tribes.

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.

Bamul has been registered under MMPO by Central Registration Authority. Today,
the Union has become the biggest Milk Co-operative Union in Southern India. Bamul has
been certified for ISO 22000:2005 for quality management and Food Safety Systems.

In recognition to these efforts and achievements, the National Productivity Council

(NPC) of Government of India has conferred “Best Productivity Award” FIVE TIMES and
“Energy Conservation Award” by Bureau of Energy Efficiency (BEE) to the Union. NDDB
Excellency Award for the year of 2016-17.

ORGANISATION STATUS:
The member producers and there are the vital constituents of the Union and their
progress is the judging yardstick on the efficiency of the Union’s operation. Hence the
maximum importance has been given to their development. The Union is making
intensive efforts over the years to organize MPCSs in more and more villages of the three
districts in the milk-shed area.

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 Importance has been given to enroll more and more milk producers in the villages
as members of these MPCS’s. While enrolling these members, more emphasis is being
accorded to enroll more number of women members and to organize more women
managed MPCSs under STEP (Support to Training and Employment Program for Women).
It is heartening to note that there is an active participation of women/ weaker sections of
the society in all the dairy development activities of the Union. They have become
mainstay of all the developmental programs of the Union. This has resulted in the buildup
of economical benefits to the most vulnerable sections of the rural mass

*Till Oct’18

MILK PROCUREMENT
The Milk produced by 1,20,458 farmers at village level will be collected every
day morning and Evening at MPCS. Under Clean Milk Production programme, to
maintain the freshness & quality of the milk 197 Bulk Milk Coolers covering 571
MPCS of Total Capacity 4,20,000 Ltrs were installed at MPCS level. During the year
the Unions daily average milk procurement is 15.50 Lakh Kgs per day, average of 731
kgs per day per MPCS. The milk procurement has increased by 11.00 % when
compared to the last year (2016-17).

*Till Oct’18

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 Bamul is offering the most remunerative milk procurement price to member
producers. The operational efficiency is reflected on procurement prices paid to the
member producers. The average milk procurement price paid to the producer during the
year is Rs 27.43 for every Kg of Milk supplied to the Union.

Milk collected at MPCS will be transported to Chilling Centers, through 135 Milk
Procurement Can Routes, by traveling 20,693 KM’s every day. 36 Bulk Milk Cooler (BMC)
Routes are also in operation, which collects milk from 197 BMC centers of 571 MPCS
directly transported to Bangalore Dairy through insulated tankers.
LIQUID MILK MARKETING :
The Bangalore Milk Union is marketing milk and milk products in the brand name
of “Nandini” through 1928 retailers, 81 Franchisee Outlets, 43 Milk Parlors, 337(Morning +
Evening+ Day counter + Product) distribution routes. The key success factor of Bamul in
becoming a market leader is the narrow price spread maintained between purchase &
sales, marketing higher volumes of milk. The volume of sales plays a critical role in
determining costs. Hence, the market strategy of Bangalore Milk Union is to regard selling
of market milk as its core marketing activity and to concentrate its efforts in this direction
to increase the volume of milk sales. The impressive growth in the sale of milk by Bamul
over the years is due to the persistent efforts to maintain timely supply, maintaining
quality and attending to the complaints of consumers and agents with prompt follow-up
action.

* Till Oct’18

Bamul is also organizing Consumer Awareness Programme as a part of Market

Development to create awareness of “Nandini” Milk through personal contacts, Door to
Door campaigns, Organizational Meetings, School Children Mega Dairy Plant visit etc., are
conducting regularly.

Types of Milk & Milk Products marketing by Bamul:

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 Nandini Toned Milk
Karnataka's most favorite milk, Nandini Toned Milk. Fresh and
Pure milk containing 3.0% fat and 8.75% SNF. Available in 250ml,
500ml, 1ltr & 6 Ltr packs. Better to use within a day from the date
of pack.

Nandini Homogenised Nandini Homogenised Toned Milk is pure milk containing 3.5% Fat
Toned Milk & 8.5% SNF. Which is homogenised and pasteurised. Consistent
right through, it gives you more cups of tea or coffee and is easily
digestible. Available in 500 ml packets.

Nandini Subham Milk. Containing 4.5% Fat and 8.75 % SNF. A

Nandini Subham rich, creamier and tastier milk Available in 250ml, 500 ml, 1 ltr &
6ltr packets.

Nandini Special Milk Nandini Special Milk. Containing 4.0% Fat and 9.0 % SNF. A rich,
creamier and tastier milk, Ideal for preparing home-made sweets &
savories. Available in 500ml &1 ltr packs.

Nandini Curd Nandini Curd made from pure milk. It's thick and delicious. Giving
you all the goodness of homemade curds. Available in 200 gms and
500 grms & 1 Kg packs.

*Till Oct’18

A taste of purity. Nandini Ghee, made from pure butter. It is fresh

Nandini Ghee and pure with a delicious flavour. Hygienically manufactured
and packed in a special pack to retain the goodness of pure
ghee. Shelf life of 6 months at ambient temperatures.
Available in 200ml, 500ml, 1000ml sachets & 15.0 kg tins.
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Nandini Butter
Nandini Butter Milk
Rich, smooth and delicious. Nandini Butter is made out of fresh
pasteurized cream. Rich taste, smooth texture and the rich purity of
cow's milk, makes any preparation a delicious treat. Available in 10
gm Blister, 100 gms (salted), 200 gms and 500gms cartons both
salted and unsalted.
Nandini spiced Butter Milk is a refreshing health drink. It is made
from quality curds and is blended with fresh green chillies,
green coriander leaves, asafoetida and fresh ginger. Nandini
spiced butter promotes health and easy digestion. It is
available in 200ml packs and is priced at most competitive

Nandini Peda No matter what you are celebrating! Made from pure milk, Nandini
Peda is a delicious treat for the family. Store at room
temperature approximately 7 days. Available in 250gms
pack containing 10 pieces each.
INFRASTRUCTURE DEVELOPMENT:
The strategy of Bangalore Milk Union is “Procure More, Sell More & 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. 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 ourselves growing constantly.

Mega Dairy with a capacity to

process 10 lakh litres of milk per day
has been built by investing Rs. 38.70
crores obtained as term loan from
National Dairy Development Board.
The Mega Dairy, has latest state-of-
the-art technological facilities in
dairy processing and the Union will
have the ability to manufacture milk
and milk products to world class
standards.

Although Bamul sets

standards for its products for better
serve to customers, it was not
possible to keep the standards
stability due to manual operations. In designing mega dairy, Bamul looked towards an
automated system that would allow it to achieve consistent quality parameters for each
product. Energy and manpower would also be more effectively optimized and controlled
and all plant equipment would be integrated .

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FINANCE:

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TECHNICAL INPUT SERVICES:
Bangalore Milk Union is providing various Technical Input & Extension Services to
the milk producer members & their Dairy animals through Fourteen Camp Offices situated
in each Taluk i.e., Anekal, Bangalore East, Bangalore South, Yelahanka (Bangalore North),
Channapatna, Devanahalli, Doddaballapura, Hosakote, Kanakapura, Solur, Magadi,
Nelamangala, Bidadi & Ramanagara. From these camps the Technical Input services like
Mobile Veterinary Service, Emergency Veterinary Service, Artificial Insemination Service,
Periodical Vaccinations, Balanced Cattle Feed Sales, Mineral Mixture Sales, Fodder
development and Fodder Seed Production, Clean Milk Production practices, Extension
Services for Cattle Feeding, breeding, insurance, milk production, BMC monitoring activity
and Bamul Trust activities etc., will be carried over.

ANIMAL HEALTH AND OTHER ACTIVITIES

The Union is taking special care to promote the health of the cattle of member milk
producers. Veterinary facilities have been extended to all the MPCS. Mobile veterinary
routes, emergency veterinary routes, Health camps, vaccination against foot & mouth
disease and thaileriosis diseases, etc., are being regularly done. De-worming programme is
done once in six months. First Aid Services is provided to cattle of producers members.

ARTIFICIAL INSEMINATION :
Artificial Insemination (AI) has been the main functional tool in dictating this
upsurge of development of Dairying in Bamul. Farmers have taken up cross-breeding
from way back in 1962. The Union has surveyed and appropriately located AI centers
based on cattle population. It is also popularized the idea of cluster AI centers by provide
artificial insemination at milk producers door step so that it can improve the conception
rate and replace the Single AI centers in a phased manner. The use of progeny tested
semen from “Nandini Sperm Station” is also giving a further boost to the breeding
activities.

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* Till Oct’18
To reduce infertility in cattle Special Infertility Camps will be conducted at DCS level by
expert gynecologist using Allopathic and homeo medicines.
During 1999-2000, a Vertical Silo of 10,000 liter capacity for storing Liquid Nitrogen
has been installed under TMDD program in collaboration with National Dairy
Development Board and Karnataka Milk Federation. In addition this facility is being used
for supplying liquid nitrogen to neighboring Unions and also to Department of Animal
Husbandry. This has helped in protecting the quality of semen straws, thereby
considerably increasing the conception during artificial insemination of cattle.
CATTLE FEED & FODDER DEVELOPMNET
The Union is implementing several programs to increase milk production and also
to reduce the cost of milk production in the milk shed area. Balanced cattle feed is being
procured from the Cattle Feed Plants of KMF for distribution among member producers.
Fodder seeds are distributed to member producers at subsidized rates to grow green
fodder and fodder seed production . Silage making , Azzolla, Hydroponics and Straw
Treatment Demonstrations are also being conducted at MPCS level. Chaff Cutters are
supplied at subsidized rates. In addition to this technical advice will be given to producer
by Agri culture officers.
Cattle Feed & Mineral Mixture Sales:
Vitamins and Minerals supplements will be given to producers at subsidiary rate to
increase milk production and to avoid infertility problems .

Fodder & Chaff Cutter Sales

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 A Seed Processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs.
The Union is catering to the Seed production needs of many Unions in Karnataka and also
of Southern India.

YASHASVINI HEALTH INSURANCE:

Yashasvini Health Insurance Scheme was introduced by Government of Karnataka
during the year 2004-05. This scheme was implemented by Co-operative department,
Members of Co-operative Societies and their family members are the beneficiaries of this
scheme. The annual premium is Rs. 300/- per beneficiary. All major network hospitals
are adopted for this scheme, all types of surgery will be covered under this health scheme.
Bangalore Milk union has covered 2.41 Lakh beneficiaries under this scheme by
contributing Rs 50/- towards premium per beneficiary. Union is bearing Approximately
Rs.1.11 Crore per year towards this Yashasvini health scheme.

CATTLE INSURANCE:
Bangalore Milk Union is providing Insurance Coverage to the Dairy animals in
collaboration with United India Insurance Ltd., 1,63,837 animals are covered under this
Insurance. The annual premium is 2.60% of the value of the animal. 50% of the annual
premium of Rs. 620.82 Lakh was borne by bamul.

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IN Future:
We want to become not only the largest Union, but also become one amongst the best-
run milk unions in the country. The Union is aware of the challenges of the new private
entrants, who are mainly thriving on unfair trade practices. They procure milk at least cost,
without bothering about the welfare of the producers and without extending any technical
inputs for improving milk production. They market milk by resorting to unhealthy and
unethical practices deceiving the unsuspecting consumers. The Union wants to counter
this in a positive manner by trying to improve its efficiency of operation and market
promotion. It wants to become well trenched in the market as market leader. It wants to
follow the strategy of cost-competitiveness, which is hard to match by the competitors .

PROGRESS AND ACHIEVEMENT OF THE UNION SINCE ITS INCEPTION

1. Establishment of the Union:
 Bangalore Dairy came into existence as a department of government on 23 rd January
1965.
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  Bangalore Dairy and all chilling center units were transferred to KDDC (Karnataka
Dairy Development Corporation) on 1st December 1975.
 Bangalore Dairy under Operation Flood-II of NDDB, was handed over from KDDC
to Karnataka Milk Federation (KMF) in May 1984.
 After the bifurcation of the Bangalore Dairy into two separate union for Bangalore
Districts (Urban and Rural) and Kolar District, Bangalore Urban and Rural District
Co-operative Milk Producers’ Societies Union Ltd. (BAMUL) on 23rd March 1987.
 Bangalore Dairy was took over by BAMUL on 1st September 1988.
 Bangalore Mega Dairy started functioning on 17th December 2000
 MMPO-1992 Registration No 42/R.MMPO/93
 Bangalore Dairy ISO 22000-2005 & ISO 9001-2000 Certified by Standard Australia
International (SAI) Global Ltd., a reputed Australian based company during 2006.
 Hoskote Dairy came into existence in June 2015

2. Infrastructure at the time of inception & subsequent expansion – year-

wise in terms of the following:
A. Capacity of the Dairy and Chilling Centers
a. Main Dairy
 Milk processing capacity was 60,000 Liters per day (LPD) at the time of
establishment of the dairy on 23rd January 1965.
 Milk processing capacity was expanded to 1.5 lakh LPD on 1st February 1981.
 Milk processing capacity was expanded to 3.5 lakh LPD during 1994.
 Milk processing capacity of 6,00,000 Liters per day (LPD) fully automated Mega
Dairy started functioning from 17th December 2000.
 Converted the old building as a Product Block during 2002.
 Mega Dairy Milk Processing capacity is expanded to 10 Lakh ltrs per day
b. Hoskote Dairy
 Milk Processing capacity of 2,00,000 Liters per day (LPD) fully automated Dairy
started functioning from June 2015.
 Dairy started functioning from June 2015.
c. Anekal Chilling Center
 Anekal Chilling Center was started on 12 th September 1964 with a milk chilling
capacity of 20,000 LPD.
 Later the milk chilling capacity was expanded to 60,000 LPD on 28th February 1999.
 Presently the milk chilling capacity is expanded to 1.00 LLPD

d. Byrapatna Chilling Center

 Byrapatna Chilling Center was started on 19 th May 1962 with a milk chilling capacity
of 20,000 LPD.
 Later the milk chilling capacity was expanded to 60,000 LPD.
 Presently the milk chilling capacity is expanded to 2.00 LLPD

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 e. Doddaballapur Chilling Center
 Doddaballapur Chilling Center was started on 5 th January 1967 with a milk chilling
capacity of 20,000 LPD.
 Later the milk chilling capacity was expanded to 60,000 LPD
 Presently the milk chilling capacity is expanded to 1.60 LLPD
f. Vijayapura Chilling Center
 Vijayapura CC was established on 1 st February 1995 with a milk chilling capacity of
1.00 LLPD.
g. Solur Chilling Center
 Solur Chilling Center was established on 31st January 1999 with a milk chilling
capacity of 60,000 LPD.
 Presently the milk chilling capacity is expanded to 1.60 LLPD

h. Hoskote Chilling Center

 Hoskote Chilling Center was commissioned on 29th March 2000 with a milk chilling
capacity of 1.5 lakh LPD
i. Kanakapura Chilling Center
 Kanakapura Chilling Center was commissioned on 1 st October 2004 with milk
chilling capacity of 60,000 LPD.
 Presently the milk chilling capacity is expanded to 1.20 LLPD

ONGOING PROJECTS
 Kanakapura Dairy Plant was inaugurated by the honorable Chief Minister on 1 st
March 2018. Machine Ericson and testing is under process.
 20KLPH capacity RO Plant at Hoskote Dairy is under process.
 New Store and Canteen building is under construction at Main Dairy

VARIOUS SUBSIDIES/ INCENTIVES EXTENDED FOR PRODUCTION

ENHANCEMENT

 Rs. 3,00,000 grant for construction of new MPCS building.

 Milk bill Advance- Interest free up to 1.5 lakhs
 Books and materials for commissioning of new MPCS
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 Testing equipments at 50% subsidy for new MPCS
 Maintenance charges for BMCs
 Quality Incentives for MPCS staff
 Subsidy of Rs.50/ for General & low income group and Rs.40 for SC/ST members
for Yashashwini Health Insurance
 Subsidy of 50% for supply of Semen straw and LN2 for A.I work
 A.I (Rs.20) &Calf born (Rs.20 per Female Calf) incentives for A.I workers
 Free Periodic Mass De-worming Program
 Chaff cutters- 50% subsidy
 Milking Machines-50% subsidy
 Cattle insurance – 50% premium subsidy.
 Godharshakthi – 50% Subsidy
 Cow Mat – 50% Subsidy
 Cow Shed – Rs.40,000/- per Shed

OTHER SERVICES

 Incentives to milk producers Rs.5/litter under Ksheeradhara Scheme by GOK

 Progeny Testing Scheme under NDDB and KMF
 Ration Balancing Program, VBMPS & FD under NDP-I & NDP-II by GOI
 Calf Rearing Scheme under GOI / RKVY
 Yashaswini Health Insurance under GOK
 GOI Sponsored STEP Program
 Distributing Milk powder to school children under Ksheera Bhagya Scheme by
GOK
 Clean Milk Production Awareness Program
 Training Programs to MPCS Staff, Managing Committee Members & Producers In
KMF CTI.

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