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Submitted in partial fulfillment of the requirement for the award of degree in Master of Business Administration submitted by MANOHARA D (USN: 12MBA61037) under the guidance of
February 2013
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CERTIFICATE
I certify that this Organisation Study carried at BAMUL submitted to School of Business, Jain University in partial fulfillment of the requirements for the award of Master of Business Administration, is a record of independent study carried out by Mr. MANOHARA D under my supervision and guidance. This work has not been submitted previously to any other College/University.
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DECLARATION
I declare that the Organisation Study undergone by me at BAMUL Ltd, Bangalore, under the guidance of Prof. DR. PREMALATHA, Internal Guide, School of Business, Bangalore is an independent work. The report has not been submitted earlier to Jain University or to any other Institution. The matter in this report is based on the information collected by me at BAMUL LTD under the guidance of MR. CHIKKAMATH DEPUTY Manager, External Guide.
The report is towards the partial fulfillment of the requirement of the Master of Business Administration course of Jain University.
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The satisfaction that accompanies the successful completion of any task would be incomplete without mentioning the people who have made it feasible with constant guidance and encouragement served as a beacon light and crowned our efforts with success. I consider it as my privilege to express through this report a few Words of profound gratitude and deep regards to all those who guided me in completing this project. I would like to thank MR. CHIKKAMATH deputy Manager , BAMUL for his unvarying and valuable guidance throughout the project work. I sincerely thank Dr. PREAMLATHA lecturer, M.B.A department for supporting and guiding me as an internal guide. Last but not the least, it is my proud privilege and I have to search words to express my indebtedness to my parents and all my friends who helped to complete the project. This has been a great learning opportunity for me and I am highly indebted to the above people for giving this opportunity.
MANOHARA.D
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Historical background of the industry: In Karnataka, on June 4 th 1975 four milk unions were started in B a n g a l o r e , M ys o r e , T u m a k u r a n d H a s a n . K a r n a t a k a D a i r y D e v e l o p m e n t Corporation got Re-named as Karnataka Milk Federation. In June 1974, an integrated project was launched in Karnataka to restructure and reconcile the Dairy Industry on the Co-operation principle and the laid foundation for a new direction in Dairy Development, the Work Bank aided Dairy Development projects during in 1975.Initially the project was covered 8 southern Districts of Karnataka and Karnataka Dairy Development Corporation was set up to implement the pr oject. The Multi Level activities were set up with Dairy Coo p e r a t i v e societies at gross root levels, milk union at the middle level as an apex body. Vested with Dairy Development activities continued under operation Flood-11, the activities were extended to cover the entire state except coastal taluk so U n i o n K a r n a t a k a D i s t r i c t . T h e p r o c e s s o f D a i r y d e v e l o p m e n t w a s continued in second phase from April 1984, Karnataka milk Federation came in to existence Objective: Karnataka Milk Federation is a Co-operative. Apex body in the state of Karnataka for representing Dairy Farmers Organizatio n a n d a l s o implementing Dairy Development activities with the following objectives. P r o v i d i n g a s s u r e d a n d r e m u n e r a t i v e M a r k e t f o r t h e e n t i r e M i l k Pr oducers. Providing Hygienic Milk to Urban Consumers. To build village level institution in Co-operation sector to manage the Dairy activities. T o e n s u r e M i l k P r o d u c t i o n f o r s e l f e m p l o y m e n t a t v i l l a g e l e v e l preventing migration to Urban Areas introducing cash economy and opportunity for regular Income. The philosophy of Dairy Development is to eliminates middle men and organize institution to be owned and managed by the milk producers themselves, achieving economics of scale to ensure maximum return to milk producers at the same time providing wholesale Milk at lowest possible price to urban Consumers.
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Competitors of the Nandini milk Good morning Heritage Dodla Arogya Gomati
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PEST ANALYSIS
Indian Dairy Industry is at cross roads Industry strongly dominated by the government sector and working in co-operative mode is going to face keen competition from private sector Co-ops performed well in some states, but in many states, they are functioning as parastatals, weak representative of farmer interest Currently co-op prices serve as a bench mark for pricing of dairy Weak co-ops competing with private sector may severely affect farmer interest Growth potential is tremendous, can the farmers benefit from
1. POLITICAL
Bangalore diary is under the guidelines of kmf administration and financial matters. Labors are paid according to 6th pay commission and also provided epic facilities according to state government. Bamul even gets grants from government. The land is owned by Bamul on rent basis from the government
2. ECONOMICAL
Since milk is a daily use product the demand will be always high and also Bamul has the major portion of market sales are always at high. And the prices vary according to government taxes and availability raw milk
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4. TECHNOLOGY
Milk is being test in every part of the process starting from procurement to dispatch through automated machines such as lactometer. There are 15chilling unit, 3bays, 4pasterisation unit, 4silos and more 10 engineers to take care of the machines. The process starting from procurement to packaging is fully automatic with only 4people controlling the whole process
COMPANY PROFILE
BANGLORE MILK UNION LIMITED
Is the biggest co-operative milk union in south India. ) was established during 1975 under Operation Flood II by keeping Amul as its Role Model. Is fully owned and managed by milk producers of Bangalore rural and Bangalore urban districts of Karnataka state
BACKGROUND
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. Later in 1962, The Bangalore Milk Supply Scheme came into existence as an independent body. BAMUL is spread over 52acres and had initial capacity of 50000lts a day. BAMUL is certified ISO 9001-2000 and HACCP (IS-15000).
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OBJECTIVES
-To ensure assured and remunerative market round the year for the milk produced by the farmer members. -To ensure assured and remunerative market round the year for the milk produced by the farmer members. -To ensure provision of inputs for milk production, processing facilities and dissemination of know how.
SWOT
a) Strong customer base: BAMUL enjoys a very strong customer base in their domestic market. Products manufactured by BAMUL are known for their quality, quality perception of customers regarding BAMULs products has earned them a very strong customer base. They have captured almost 70% of the market share in the domestic market. B) Competitive Product line: Products offered by BAMUL are only one of its kinds in the domestic market; its competitors have only a few substitutes to offer in terms of variants and quality of products. d) Automated Production: BAMUL has an automated production process; it helps them to\drastically reduce the cost of production per unit due to High-end technology production process. WEAKNESS d) Automated Production: BAMUL has an automated production process; it helps them to drastically reduce the cost of production per unit due to High-end technology production process.
OPPORTUNITIES
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PRODUCT
Types of Milk & Milk products marketing by Bamul 1. TONED MILK = 3.1 FAT, 8.50 SNF 2. DOUDLE TONNED = 1.6 FAT, 9% SNF 3. HOMOGENISED COW MILK = 3.6 FAT, 8.50% SNF 4. SAMRUDHI = 6% FAT, 8.50% SNF 5. SHUBHAM = 4.6% FAT, 8.50% SNF 6. SKIMMED = 0% FAT With a total of 9lakh Ltrs per day
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 gms & 1 Kg packs. Nandini Butter Rich,
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NANDINI GHEE
A taste of purity. Nandini Ghee is made from pure butter. It is fresh and pure with a delicious flavour. Hygienically manufactured and packed in a special pack to retain the goodness of pure ghee. It has a shelf life of 6 months at ambient temperatures. Available in 200ml, 500ml, 1000ml sachets & 15.0 kg tins.5tonnes a day
NANDINI BUTTER
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 100 gms (salted), 200 gms and 500gms cartons both salted and unsalted.4tonnes a day
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 for 7 days. Available in 250gms pack containing 10 pieces each. 300kgs
SERVICES:
1. ARTIFICIAL INPUT SERVICE 2. ANIMAL HEALTH 3. ARTIFICIAL INSEMENATION 4. CATTLE FEED AND FODDER DEVELOPMENT 5. YASHWINI HEATH CARE SERVICE 6. CATTLE INSURANCE MARKET
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751506
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
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.
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MARKETING
Departmental Hierarchy: Marketing department comprises of departmental head and further divided into two categories and further into officers then to superintendents. Salesmen and dispatcher. The hierarchy is as under.
MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
ZONAL MANAGER
SUPERINDENTENT
FUNCTIONS
To capture the markets share. To collect information about revenue. Maintain sales and other accounts. To attain major market shares. They conduct the market survey to analyze the consumers feedback of their product.
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Promotional Activities:
Door to door campaigning:- This is done through the sales force team by questioning the consumers, reasoning them, issuing brochures etc. This is carried on periodically. Organizing meeting:- Organizing meetings is important public places and inviting important period like doctor, professional, government officers etc. Visit to Non -Govt. Organizations:- Visiting to NGOs and creating awareness about the product and its benefits, inviting them to the plant and showing them the production procedures. Visit of school children to the dairy and promoting their products through them by issuing samples. Inviting the consumer forum and creating awareness to them. Participating in trade shows, exhibitions and educate people Through advertising in major medias like T.V., News Papers, hoardings etc It seals its product under the brand name NANDINI HUMAN RESOURCE FUNCTION Bamul does not exactly have HR department as such but all the HR functions are carried out by administration department.
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Recruitment
Procedure of appointment If a post is to be fulfilled by competitive examination, then after giving adequate publicity in the leading Kannada newspaper and one of the national dailies (as the appointing authority may determine). The appointment procedure will be carried 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
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HR Practices of BAMUL:
The following are the HR practices of BAMUL: 1. House rent Allowance:It is allowance provided to all permanent employees at the rate of 13% of basic pay. 2. Conveyance Allowance:Companies provide conveyance facilities to each employee from the place of residence to the place of work. BAMUL also provides this allowance because it is situated 11 km away from Bangalore. Conveyance allowance of Rs. 225/month for persons owning Scooters/Motorcycle, Rs. 500 for moped whereas Rs 1000 3. Provident and Pension Fund:This contribution is equal to that of employee contributions i.e. 12% of salary and it is divided between provided and pension fund as 8.33% and 3.67% respectively. The total accumulated is balanced in the individual PF account and is paid to employee at the time of his retirement or on his leaving the service. In the event of the death of the employee accumulated balance is paid to his legal heirs 4. Gratuity:The amount of gratuity payable is generally 15 days average salary. For this purpose salary includes only basic pay, DA and completed service. 5. Compensation for disablement:The employees are covered under the group saving Life Insurance scheme. Who contributes to the fund are as follows: Below SDC - Rs. 30 Above SDC - Rs. 60 Below superintendent - Rs. 90 Above superintendent - Rs. 120 Out of this 10.5% is kept for insurance
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ORGANISATIONAL STRUCTURE
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FINANCE DEPARTMENT
MANAGER
DEPUTY MANAGER
ACCOUNTS OFFICER
SUPERINDENTENT
ACCOUNT ASSISTENT 1
ACCOUNT ASSISTANT 2
HELPERS
Functions:
The main functions of financial department are as under: 1. To manage cash. 2. To manage bills. 3. To manage transportation bills. 4. To manage pay bills. 5. To manage accounts. 6. Prepare IBP 1. Cash: There are two cash counters in the financial section, I) Collection of sales proceeds counter.
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III)
Another cash counter is for handling impressed cash and cheques. Impressed cash means amount required for meeting various payment. Receipts are being issued for collection of cash towards receipts of EMD (Security deposit repayment of advance drawn and such other outstanding) all these things are recorded in a cashbook called petty cash book. This cashbook is being closed at the end of day a verified by accounts office\Asst. Manages finance. Cheques are also being drawn for payments of bills whenever payments are required through cheques. For receipt of any cheques received from outside official, general receipts are being passed in cash counter using tally ERP9. 2. Bills: Bills are being received from various suppliers and usually the purchase section after getting the Material Receipts Information (MRI) from stores duly certified for quality and quantity, sends bills to finance section in the related files and these bills are processed and entered in the control register and after scrutiny from pre-auditors bills are put up for passing before MD through Assistant Manager Finance. After the approval of MD the cheques are drawn in the name of the parties. File with entries of cheque No. and a copy of the voucher is returned to purchase section / to the concerned section. And the payment vouchers are accounted in com 3. Transportation Bills: Following are the types of transportation bills: i) Procurement Transportation Bills (PTC) ii) Distribution Transportation Bills (DTC) iii) Mobile veterinary root bills iv) Cattle feed transportation bills v) LN2 transportation bills (Liquid Nitrogen) vi) Hire vehicle transportation bills
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Sources of Finance:
The main source of finance is sales realization (Retained Earnings). Sales are purely on cash / cheques basis. As the nature of the product is highly perishable i.e., that milk and other milk products. Hence because of this the product needs to be immediately sold to the end users, as result money is generated immediately and routinely. Hence this forms the only source and can be classified as short-term source finance. The other products of milk and as their perish ability period is little more i.e., for a products of 3-4 months and sales are realized and money gained out of it can be classified as long-term source of finance. Sometimes they even get grants from the government. The Union had an approximate turnover of Rs. 692.82 crores in the year 2010-11 as against Rs. 527.76Crores for the year 2009-10.
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1278.94
1008.914
1019.655
1033.57
1000.05
19992000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2009-10 2010-11 2011-12
999.645
1031.37
1157.11
1158.39
1600
1157.389
22536.30
1997-98 1998-99 1999- 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2011-12 2000
17125.33
19776.20
22072.93
23232.00
25323.43
27873.76
31345.89
37452.00
69828.49
1282.96
25
1494.04
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387.52
327.48
343.79
357.3
237.58
228.52
73.93
1999- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2006- 2007- 2008- 2009- 2010- 20112000 01 02 03 04 05 06 07 07 08 09 10 11 12
35.73
OPERATIONS
MILK PROCUREMENT
The Milk produced by 99405 farmers at village level will be collected every day morning and Evening at DCS. Under Clean Milk Production program, to maintain the freshness & quality of the milk 121 Bulk Milk Coolers covering 377 DCS of Total Capacity 1,92,802 ltrs were installed at DCS level. During the year the Unions daily average milk procurement is 9.32 Lakh Kgs, which works out to be 551 kgs per day per DCS. The milk procurement has increased by 2.15 % when compared to the last year.
51.29
159.00
279.32
286.21
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295.22
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932572
546940
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
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 during the year was Rs. 19.06 for every Kg of Milk supplied to the Union, which is 80% of total cost of production
Misc 0%
Transport 1%
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PROCEDURE
EACH TANKER IS WEIGHTED AT THE WEIGH BRIDGE & THE SAMPLE MILK IS TESTED IN ELECTRONIC FAT TESTER
MILK IS UNLOADED TO RAW MILK SILOS (4 SILOS WITH A CAPACITY OF 1 LAKH LITRES)
AFTER PROCESSING, THE MILK IS CONVERTED INTO 4 TYPES OF MILK I.E. FCM, TM, CTM AND HCM
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The organization chart and accompanying baggage that show who reports to whom and how tasks are both divided and integrated. Since BAMUL is a co-operative sector unit. The structure of the organization is democratic. Major decision however is taken is at top-level management of the company.
MIS SECTION
. All the activities have been controlled by system in BAMUL. The whole organization is automated & computerized. There are 2 types of software, operating in BAMUL. ERP-enterprise Resource planning. Production process software. The ERP is mainly used for business process. This software is named as DOIS- Dairy operating information system. DOIS is in ORACLE & fronted is D2K that is developer 2000 & backend tool is my SQL data base. Here the modules covered are finance, sales, marketing, & production & engineering. The whole organization is 100% computerized & they have RAS- Rockwell Automation software & PLC- programmable logic controllers soft ware. They have IBM windows server & LAN- Local Area Network connection. There are 130 systems in the union & even chilling centers & even at societies are fully computerized. Through online they will transfer data to chilling centers through ORACLE software. They have AMCU- Atomized Milk Cleaning unit for cleaning purpose.
BAMUL at Glance An ISO-22000:2005 & ISO-9001:2000 Certified Procurement & Input Inhabited Villages Milk Producer Members Dairy Co-operative Societies Milk Procurement Routes + BMC Routes Artificial Insemination Centers Single 2,611 3,25,854 1,708 93+13 259
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Mckinseys 7S Model
Let's look at each of the elements specifically: Strategy: the plan devised to maintain and build competitive advantage over the competition. Structure: the way the organization is structured and who reports to whom. Systems: the daily activities and procedures that staff members engage in to get the job done.
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Shared Values: called "superordinate goals" when the model was first developed, these are the core values of the company that are evidenced in the corporate culture and the general work ethic. Style: the style of leadership adopted. Staff: the employees and their general capabilities. Skills: the actual skills and competencies of the employees working for the company.
1. Shared Value: It means the central belief and attitudes of the organization. The core values of the organization is as follow a. Leadership b. Responsive and Fairness c. Credibility Employees have to work using these values and employees are evaluated on these basis. 1. Strategy: It means the plans to reach the target audience and plans advised to maintain and build competitive advantage. The strategies are used by the organization are as follows. a. Protect and penetrate b. Data driven
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Structure.
Top level managers are act as facilitators of the resources to the team of employees motivate them to accomplish organization goal with achieving personal goal.
2. Systems: It means the procedures, processes and routine that characterizes how important work is to be done. Organization has fixing a target of work to every team which has to be performed by the employees in the supervision of the team leader. Performance appraisal is done through self-appraisal and then team managers will rate their subordinates and totally it is done according to the level of hierarchy. 3. Staff: top level the age of employees are more than 45 years.
4. Style Employees have to report to their team manager about their work and solve their problems by discussing with the group. 5. Skill: Employees who is working in the organization has following skills a. Leadership b. Programming
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FINDINGS
BAMUL is serving the rural region and helping for their upliftment, by way of procuring milk through poor farmers through its formed societies and paying them fair returns. It is contributing for economic up liftment of farmers.
better quality milk and milk products. L is earning profit year after year and it is not confronting any financial problems.
total quality maintenance (function) has got its own quality control department with fully equipped laboratory and equipment that help detecting any adulteration or any such other defects.
legal awareness about social and economic upliftment among rural people, especially women. The whole system is so equipped that hygiene is maintained in every part of production
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CONCLUSION
BAMUL is the no.1 milk diary in India. It has unique features such as No Profit No Loss motive, it acts as mediator between farmers and the public. It gives social commitment to farmers and sells its products at convenient price for customers.
It was a great experience coming to Bangalore Diary and doing my in plant here. I got an exposure of the corporative world. I got a chance to compare our theory with the practicality. By studying about the BAMUL organization I got to know how the people work in the organization. It was a great experience in BAMUL knowing how milk is processed and other products and also how it is good for our health. I gained lot of knowledge.
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BIBLIOGRAPHY
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