Hassan Milk Union limited report

Project Report on HAMUL, Hassan

REPORT ON HASSAN MILK UNION LIMITED

(NANDINI)

Under the guidance of

Mr. Chidambaram murthyProduction manager

Hassan milk union limited

Submitted by-

Anand, V.4th B.Tech (Food Sc. And Technology)

Agriculture College, Hassan

Dept. of Food Sci. & Tech, ACH


ACKNOWLEDGMENT

I wish to express my sincere gratitude to my guide, Mr. Chidambaram murthy Production manager Hassan milk union limited for his valuable guidance and support which helped me in successfully completing the project.

I also thank Mr. Govinda raju, General Manager Hassan milk union limited, for

permitting and giving me an opportunity to do such a project. I thank him for his

encouragement and for extending his valuable advice, which helped me throughout.

I would like to extend my gratitude to the quality assurance department of Hassan

milk union limited. for their constant support and cooperation.

Anand.V

Date:

Place:



SYNOPSIS OF THE PROJECT

The project was based on the role of a microbiologist in a food industry with respect to food

safety. It included Environment Monitoring with respect to the areas of food processing and

analyzing Water samples used for the processing of food.

The entire project was scheduled for a month. The above mentioned analyses were carried

out systematically on a daily basis, so as to get consecutive results for the same.

To detect the presence of bacterial growth, if any, in areas of food manufacture, to analyze

the root cause for such an issue and to rule out the possibilities of contamination was the

main aim of this project.



Karnataka Co-Operative Milk Federation – a harbinger of rural prosperityKarnataka Milk Federation (KMF) is the largest Cooperative Dairy Federation in South India, owned and managed by milk producers of Karnataka State. KMF has over 2.23 million milk producers in over 12066 Dairy Cooperative Societies at village level, functioning under 13 District Cooperative Milk Unions in Karnataka State. The mission of the Federation is to usher rural prosperity through dairy development. During the last four decades of Cooperative Dairy Development by KMF, the dairy industry in Karnataka has progressed from a situation of milk-scarcity to that of milk-surplus.

“Quality Excellence from Cow to Consumer” – is the motto of the Federation to obtain better-quality Milk and milk products from our value chain (Procurement to Processing to Marketing). Thus milk and milk products, under brand name, are unmatched in quality made available to consumers at most competitive prices. In a way Nandini Milk and Milk Products are “Spreading wealth of health”.

Hassan Co-operative Milk Producers' Societies Union LtdCoffee, Potatoes, Oranges, Honey, Cardamom, Butter & Pepper used to be the talk of the districts covered by the union in this historical fame of Shravanabelagola, Belur, Halebid along with iron ore in Kudremukh.Today 78% of the 17 taluks are covered under more than 1300 functioning DCSs.It has chilling centers at H.N. Pure-100 TLPD,Birur-20 TLPD and C.R.Patna-100 TLPD. Total chilling capacity 220 TLPD. There is Bulk Milk Coolers-19 and Automatic Milk Collection-108 units in the unionThe union procures on an AVG 5.54 lac kg/day of milk and sales 1.23 lac litres/perSpeciality of the Union: First union to record the growth of 100% increase in milk procurement. The Union has been awarded by GOI with “National energy conservation award” 4 times for implementation of energy conservation programs.



Introduction

Nandini milk union is situated in Dairy circle, Hassan. The company manufactures Ghee,

Peda, Curd, and milk powder as part of its production. HAMUL who work in two regular

shifts.

Quality assurance, or QA for short, is the systematic monitoring and evaluation of the

various aspects of a project, service or facility to maximize the probability that minimum

standards of quality are being attained by the production process. QA cannot absolutely

guarantee the production of quality products.

Two principles included in QA are: "Fit for purpose" - the product should be suitable for the

intended purpose; and "Right first time" - mistakes should be eliminated. QA includes

regulation of the quality of raw materials, assemblies, products and components, services

related to production, and management, production and inspection processes.

Quality is determined by the product users, clients or customers, not by society in general. It

is not the same as 'expensive' or 'high quality'. Low priced products can be considered as

having high quality if the product users determine them as such.

STEPS FOR A TYPICAL QUALITY ASSURANCE PROCESS

There are many forms of QA processes, of varying scope and depth. The application of a

particular process is often customized to the production process.

A typical process may include:

test of previous articles

plan to improve

design to include improvements and requirements

manufacture with improvements Dept. of Food Sci. & Tech, ACH


review new item and improvements

test of the new item

QUALITY CONTROL is a process employed to ensure a certain level of quality in a

product or service. It may include whatever actions a business deems necessary to provide for

the control and verification of certain characteristics of a product or service. The basic goal of

quality control is to ensure that the products, services, or processes provided meet specific

requirements and are dependable, satisfactory, and fiscally sound.

Essentially, quality control involves the examination of a product, service, or process for

certain minimum levels of quality. The goal of a quality control team is to identify products

or services that do not meet a company’s specified standards of quality. If a problem is

identified, the job of a quality control team or professional may involve stopping production

temporarily. Depending on the particular service or product, as well as the type of problem

identified, production or implementation may not cease entirely.

SAFETY PRECAUTIONS IN THE MICROBIOLOGY LABORATORY

It is mandatory to ensure that people working in a laboratory are provided with as safe and

healthy working environment as possible. To achieve this all the general site safety rules and

precautions must be followed. In addition special consideration must be made for the fact that

viable micro-organisms of many types will be present in a microbiology laboratory.

It should always be assumed that the organisms with which you are working are capable of

producing disease. Great care should be taken in the handling of cultures, slides and all

material that may have been in contact with viable micro-organisms.

Even if laboratories do not intentionally culture and identify pathogenic micro-organisms,

there is always a risk of accidental infection since micro-organisms can unknowingly be

grown from raw materials or product under test, and transferred from culture to person

directly or indirectly through careless handling. Particularly important is the hazard of

infected airborne particles.

When conducting microbiological examinations, it is especially important that:

Only those micro-organisms which are present in the samples are isolated or

enumerated,



The micro-organisms do not contaminate the environment.



GENERAL LABORATORY PRACTICES

Premises

Care should be taken to locate the premises so as to avoid risk of cross-contamination.

The microbiology laboratory should be well separated from other laboratories and

factory areas.

Windows and doors should be closed at all times.

Only authorized personnel should be allowed into the microbiology laboratory.

The ambient temperature and air quality should be compatible with carrying out the

tests. Where there is a forced ventilation system in the laboratory, filtration of the

incoming air is recommended.

Regular cleaning and disinfection should be carried out.

The floors, walls, ceilings, bench tops and furniture must be subjected to regular

maintenance and repairs in order to avoid cracks, which could be a source of

contamination.

The microbiological quality of surfaces and air should be regularly monitored.

Personnel Competency

Hygiene and safety procedures should be developed to avoid contamination of

samples and culture media, but also to avoid risk of infection. All personnel working

in a microbiology laboratory should have received adequate training to enable them to

conduct their tasks properly and safely.

Hygiene and safety procedures (including incident procedures) must be implemented.

All laboratory personnel must be familiar with these procedures, and receive relevant

updated information in hygiene and safety.

Personnel Hygiene and Safety

All incidents and accidents, such as spilled cultures, cuts or abrasions, should be dealt

with immediately and reported.

Immediately mop up any spillage with cotton pads or any other material impregnated

with a suitable concentration of appropriate disinfectant, then clean and disinfect the

work surface prior to continuing. Any paper towels, cloths used to mop, together with



any broken material or contaminated items of clothing should be packed in an

autoclave disposal bag and sterilized before disposal.

Any existing cuts or wounds to the skin should be covered with a suitable waterproof

dressing before working in the microbiology laboratory.

Laboratory clothing should be clean and worn fastened-up at all times. Laboratory

clothing must be autoclaved before sending to the laundry. Laboratory clothing must

not be worn outside the microbiology laboratory.

A separate hat and coat or uniform should be available and worn when entering

production areas to take samples or swabs. They must not be worn in the laboratory.

Personnel should wash hands using antibacterial soap or appropriate disinfectant,

every time when entering or leaving the laboratory area, before and after

microbiological testing and examinations. Single-use paper towels should be used for

hand-drying.

When inoculating, personnel should avoid speaking, coughing, etc,

Smoking, eating, drinking or applying cosmetics in test areas must be forbidden.

Samples

All instruments used for taking a sample should be sterile

The samples should be uniquely coded and documented in such a manner that their

progress and that of the analyses can be tracked through to the time of drafting the test

report.

All retained samples should be kept at least until the end of the final microbiological

results, for eventual further investigation

The samples should be uniquely coded and documented in such a manner that their

progress and that of the analyses can be tracked through to the time of drafting the test

report.

All retained samples should be kept at least until the end of the final Microbiological

results, for eventual further investigation.

Pipetting by mouth must be forbidden. Pipetting aids must be used.

Negative controls should be used for each "batch" of medium, and if possible

whenever there is an added risk of contamination (e.g. when pouring medium at

different moments in time).



Test tubes and bottles containing cultures should always be kept upright in racks.

Unless otherwise stated, the inoculated dishes should be inverted soon after the agar

has set and placed in an incubator set at the appropriate temperature.

Hassan Milk UnionINDUSTRIAL PROFILE

Dairy is a place where processing of milk and production of milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale.

Dairying in developed countries such as the USA, the year 1850 is seen as the dividing line between farm and factory scale production. Various factors contributed to the change in these countries viz., concentration of population in cities where jobs were plentiful, rapid industrialization, improvement of transportation facilities, development of machines etc., whereas the rural areas were identified for milk production, the urban centers were selected for the location of milk processing plants and product manufacturing factories. These plants and factories were rapidly expanded and modernized with improved machinery and equipment to secure the various advantages of large-scale production. Nearly all the milk in the USA before 1900 was delivered as raw (nature) milk. Once pasteurization was introduced, it developed rapidly. Mechanical refrigeration helped in the rapid development of the factory system of market distribution.

MILK:

Milk may be defined as whole, fresh, clear lacteal sureties obtained by the complete milking of healthier milk animals. It represents the perfect food for man nearly than any other natural food. An adequate consumption of milk can correct dieting deficiencies for most people strong, healthy bodies. It is delicious and appetizing food as well as being healthful.

The major constituents of milk are water, fat, protein, lactose and mineral water. The major constituents are phospholipids, sterols, vitamins, enzymes, pigments etc. The true constraints are milk fat, casein and lactose.

Milk is absolutely essential for the welfare of the human race. The cow has been rightly called, “The Foster Mother of Human Race” “and she is found in most of the civilized countries of the earth.

Asian Dairy Scene:

With 60% of the world population, Asia accounts for only 20% of the global milk production. The total world production of more than 500 million tons for a population of about 4 billion amounts to an average annual per capita availability of 100kg. The corresponding figure for Asia is only about 27 kg and the consumption is about 30kg. Some 10% of milk consumed in Asia is imported. In several Asian countries, imports of dairy products, both as finished products in consumer packs and in bulk for recombination in to milk have helped create a dairy market and a milk processing industry.

The Asian countries have been producing over 96% of the world’s buffalo milk output, estimated at 48 million tons, India accounts for more than 30% of it. The recent formation of the Asian Buffalo Association will help overcome the neglect that the buffalo has suffered for decades.



Dairy in India:

In India, dairying has been practiced as a rural cottage industry since the remote part. Semi-commercial dairying started with the establishment of military dairy farms and co- operative milk unions throughout the country towards the end of nineteenth century. During the earlier year, each household in those countries maintained its family cow or secured milk from its neighbor who supplied those living close by. As the urban population increase, fewer households could keep a cow for private use. The high cost of milk production, problems of sanitation etc., restricted the practice, and gradually the family row in the city was eliminated and city cattle were all sent back to the rural areas.

The Indian dairy industry has made rapid progress since independence. A large number of modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various western and Indian dairy products.

With modern knowledge of the protection of milk during transportation, it become possible to locate dairies where land was less expensive and crops could be grown more economically.

In India, the market milk technology may be considered to have commenced in 1950 with the functioning of the Central Dairy of Aarey milk colony, and milk product technology in 1956 with the establishment of AMUL dairy, Anand. The industry is still in its infancy and barely 10% of our milk productions under goes organized handling.

History of Indian Market Milk Industry:

• Organized milk handling was made in India with the establishment of Military Dairy Farms.

• Handling of milk in co-operative milk unions established all over the country on a small scale in early stages.

• Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945.

• Pasteurization and bottling of milk on a large scale for organized distributed was started at

Aarey - 1950

Calcutta (Haringhata) - 1958

Delhi - 1959

Worli - 1961

Madras - 1963

• Establishment of milk plants under the 3- year plans for dairy development all over India. They were taken up with the dual object of increasing the national level of milk consumption and ensuring better returns to the primary milk producer. These main aims were to produce more, better and cheaper milk.



Indian represents one of the world’s largest and fastest growing markets for milk productivity by March 1999, it was 74 million tones, and by 2001 it reached to 88.5 million tons of milk. The strength of the dairy economy is in its livestock of 270 million that includes 57 million cows and 39 buffaloes, which also is the largest in the world.

In terms of percentages we have 54% of the Asian population.

COMPANY PROFILE

HISTORY:

Hassan Milk Union Limited (HAMUL) is a District Level Milk Co-operative society established under KMF on 30th March 1977. At the beginning it was started in a small shed beside Seetharamanjinaya Temple at Park Road. Presently it is widely spread in a 27-acre plot in the Industrial Area B.M. Road, this being the procuring & processing unit. There are presently 2 Chilling centers in Holenarsipur, Hassan District and Birur in Chikkamagalore district and it is constructing a new chilling Centre in Shettihalli near Channarayapatna. Milk is being collected daily in two shifts.

The capacities of dairies and chilling centers are as follows.

Milk Procurement Activities

Place Capacity liters/day Capacity utilization % of capacity

liters/day * at the end of utilization month June 2008

Utilization

Hassan Dairy 1,20,000 2,30,000 191.66

Holenarsipur chilling Centre 20,000 55,000 275.00

Birur chilling Centre 20,000 35,000 175.00

Kudige dairy 25,000 20,000 80.00

*The capacity utilization is varies day to day because milk procurement is also varies day to day

In Shettihalli near Channarayapatna in Hassan District (under construction)

BACKGROUNDAND INCEPTION OF THE COMPANY:

The Hassan Unit started its Dairy development activity during 1975 with the World Bank Financial assistance under the guidance of Karnataka Dairy Development Corporation.

During 1975 an integrated project was launched in Karnataka to restructure and recognize the dairy industry on the co-operative principles and to lay foundation for new direction in dairy development. Work on the first ever the World Bank aided dairy development project was initiated in 1975. Initially it covered 8 districts of Karnataka such as Mysore, Hassan, Tumkur, Dharwada, Belgam, Shivamoga, Chikkamagalore, and Kodagu.

Hassan Co-operative milk producer’s society union ltd. was set up to implement the project by Karnataka dairy development co-operation (KDDC) in 1975. It was registered on 30th March



1977and the operational jurisdiction of the union extended to 3 districts namely Hassan, Chikkamagalore and Kodagu.

ISO 9001:2000 certifications have been obtained for Quality, And HAMUL are in the process of obtaining HACCP quality certification at on early date.

Aims and objectives:

Hassan Co-operative Milk Producers Societies Union is completely an autonomous body consisting of representatives from milk producers as policy makers. The area of operation in the districts of the district of Hassan, Kodagu and Chikkamagalore. The milk union also aims at sustained in rural areas through meticulous planning, training, strict implementation and follow up progress of various schemes offered by, both state and central Government.

• Formation of dairy co-operative societies under the principles of co-operation to encourage small, marginal farmers and agricultural laborers to take up dairy activities.

• To provide continuous and remunerative makers for the surplus milk in the rural areas.

• To supply quality milk to customer in the urban areas at a competitive price.

• To provide the technical inputs necessary to produce good quality milk and to facilities increase in milk yield.

• To provide self-employment to rural folk and to make them economically self-sustainable by which the migration of rural folk to urban areas is minimized.

• In addition to organizing the dairy co-operative under the principle of co-operative to prevent the role of middle men in the milk business and to increase their returns.

• To establish a bridge between rural and urban folk and to play a vital role in changing the social and economic status of the rural folk.

Role of dairy Co-operative Societies:

The dairy co-operative are organized in rural areas for the milk producers keeping in view the democratic principle and values. These societies educate, guide and support the milk producers in dairy development activities and the responsibility of managing these has been vested to the milk producers.

Functioning of Dairy Co-operatives:

The dairy co-operative function all through the year in two shifts, this will provide continuous market for the surplus milk produced and the payment for the milk supplied will be disbursed to the producers on the predetermined day. The dairy co-operatives render the technical inputs like veterinary services including regular vaccination, artificial insemination services, supply of balanced cattle feed and fodder slips to milk producers and facilitate increase in milk yield by conducting animal fertility camps.

Growth of the Hassan Co-operative Milk Producers’ Societies’ Union:

The milk union which was established in the year 1977 with 100 functional dairy co- operatives collecting 10,300 Kgs of milk per day, the Hassan Dairy with an initial capacity of 60000KGPD was expanded to 120000 KGPD during 1996. The milk union has also established two chilling centers



with a capacity of 20000 KGPD. The Hassan Milk union has a mile stone in owning the first established dairy plant at Kudige in Karnataka.

VISION:

The Union thrives hard to adopt the modern & eco-friendly technologies to produce milk & milk products of international standards to make our presence prominent in the global market.

MISSION:

Hassan Milk Union aims to render the best service at nominal cost to its members to increase milk production and produce good quality milk by paying remuneration price throughout the year, thereby improving their economic and social condition while ensuring high quality milk & milk products to the delighted level of the consumers at competitive price.

Activities of Hassan Milk Union:

1. Organization of Dairy Co-Operative SocietiesAs at the end of June 2008, 1016 societies have been registered of which 924 are functional. Out of functional societies 213 are women societies 79 step women societies are functioning. To enhance the socioeconomic development of women.

2. Membership EnrolmentAs on 30th June 2008 1, 51,857 members have been enrolled of which 63,733 are small farmer, 40,803 are marginal farmers, 19,027 are agriculture laborers, and 28,294 are other big farmers. Out of the total 10,236 belongs to SC members, 3,855 belongs to ST members. 43,236 members belong to women members.

3. Milk Procurement ActivitiesThe present average milk procurement from 924 milk societies is around 3, 60,500kgs/day. During the month of June the average procurement /DCS/day is390kgs and the average transportation cost per kg of milk procurement is 32 paisa. The average fat is 4.19% and average SNF is8.51%.

Input Activities:

a. Veterinary FacilityCovered 638 societies under veterinary route, 6 mobile veterinary routes treating an average of 4,500 cases per month. There are 5 emergency routes in operation and treating around 400 to 450 cases per months. There are 340 first aid centres are also working. Union is providing SAF kit to the animals for the prevention. (Or) de-warming. Foot and mouth vaccination is also providing for controlling foot and mouth diseases.

b. Artificial InseminationTo improve the breeding facility there are 23 single AI Centre’s and 63 Cluster AI Centre’s are working in the union area. These Centre’s are covered around 90% of the DCS. Averages of 20,000 inseminations are carrying out every month. 2762 male cows and 3109 female total 5871 cross breed cows have been born during June 2008.



c. Feeds and Fodder The union is uncovering the farmers and the producers at the village level in growing modernized fodder. Ex. union is supplying CO1, CO2 and Napier roots and SSG seeds, cow pea seeds and seasonal seeds to the producers. The union is also arranging straw treatment demonstration, silage demos at village levels. The union is supplying around 3000 metric tons of cattle feeds and an average 6000 kgs of mineral mixtures to the society members. Nearly 98% of the functional societies have been covered under cattle feed sales.

d. Training facilitiesTraining will be given to the milk society secretaries, testers and management committee members. DAM (dairy animal management) is given to the producers. This training is given in central training institutes, Mysore, owned and managed by KMF Bangalore.

Other programs:

a. Group insurance:-With the co-ordination of the general insurance company by paying premium to the insurance company. The DCS providing insurance coverage.

b. Step programme:-Under this, women members have been enlightened with education, nutrition, legal matters. SHG (self-help group) the main purpose of step programme is to provide better socio-economic status to the women members

c. Yashaswini health programme:- Under this scheme, those who have become members of this scheme will get medical benefits like operation charges.

d. Total quality management (TQM); - The union has encouraged clean milk production programme at village level. The union has obtained ISO 9001:2000 certifications. There are 13 bulk milk coolers and 43 automatic milk collection Centre’s which are functioning in the milk societies. Union activities have been computerized partially and during 2008-2009, it is spending around 64-70 lakhs towards computerization.



ORGANISATIONALCHART

The HAMUL is divided in two categories namely:

1 .ELECTED BODY:

The Co-operative society members are eligible for electing the President and other governing members. The President heads the elected body. The elected body controls the societies and they keep a close watch on the working of the Co-operative societies and HAMUL. Mr. H.D.Revanna, former Minister is the present president of Hassan Milk Producers Co- operative Societies & KMF.

2. SELECTED & ADMINISTRATION DEPARTMENT:

The employees working in the organization under HAMUL constitute the selected body. The qualified candidates are selected to the organization. This involves both Elected and Selected bodies. The administration department decides all the technical, production, procurement etc. it also involves the pricing and accounting section. They are allotted with specific work on their qualification likewise, Technical Officers, Marketing officers, managing directors etc. There are around 415 employees working in all the sectors of organization.

Under Managing director they are 4 Managers namely:

A) Manager in Finance department.

B) Manager in marketing department.

c) Manager in Production department

d) Manager in Quality control.



FUNCTIONAL AREAS:

There are seven departments in HAMUL viz.

Procurement and input department

Dairy department

Administration department

Finance department

Purchase department

Marketing department

MIS department

The hierarchy of this different department is given below:

PROCUREMENT AND INPUT DEPARTMENT

The purchasing activities include selecting good geographical area which is well suited for cattle and where the cattle are more in number. So that the unit can install co-operative societies.

Purchasing is a managerial activities that foes beyond the simple act of buying and includes the planning and policy activities covering wide range of related and complementary activities. The purchasing department occupies a vital and unique position in the organization.

Objectives of purchasing department:

To procure right material To procure material in right quantity To procure right quality To procure from right and reliable source of vendor To procure from right and reliable source of vendor To procure material economically i.e. at right or reasonable price To receive and deliver material at right place and right guide.

ADMINISTRTION DEPARTMENT:

Though the unit do not have human resource department, most of the human resource work is taken care by administration itself. The employees enjoy good environment as the organization welfare is good.

As the unit is registered under society’s act 1959, it follows certain rules and regulation.

Recruitment rule

Recruitment under this rule can be made in two ways:

1. By direct recruitment. 2. By promotion

Direct recruitment: under this method selection can be made either by competitive examination or oral interview.



By promotion: The recruiting and promotion shall be ground by the cadre and recreational rules duly approved by registration of co-operative societies.

Group saving linkage insurance (GSLI)

The entire employee on covers under GSIL scheme of LIC of India. In case of death of the employees, they are paid insurance amount in accordance with the category of the particular employees.

FINANCE DEPARTMENT:

Financial function is an area of financial decision making, harmonizing individual motive and co-operative goods. It covers not only financial planning, but also optimum use of funds as well as the financial control.

The basic functions performed are the day to day fund management treasure management beside these the boom of accounts. The decision regarding acquiring of plant and machinery or any capital expenditure is made on the basis of payback period/internal rate of return net present value method. These are a cooperative organization the ultimate decision lies in the hands of the board of direction. The credit period allowed to buyers depends upon the mutual understanding or as per contract and credit period allowed by the supplies is 7-8 days (payment is made on weekly basis to the farmers).

PURCHACE DEPARTMENT:

This department also play major role because the quality of milk which is procure from the different societies should be maintained equally because 1 liter of spoil milk is enough to spoil whole milk in the company. So the purchase department must careful while purchasing milk.

Assistant Manager

Assistants

Workers

MARKETING DEPARTMENT:

Marketing is indeed an ancient art has been practiced from age-old times. But its need for selecting even basic commodities is of recent origin. In a short period of time, marketing has growth to such extent that it is being viewed it as most important of all the management functions as follows.

Marketing mix of HAMUL is as follows:

Product:

They are flooring milk in difference quantities like 500ml, 250ml, 200ml, and quality of the each product is high. The brand name of the firm is very attractive. The system of packing is very safe and convey for transport purpose. The colors of the milk packets are Red and Blue. The colour of the ghee packing is yellow.

Price:

The pricing method followed by the firm is very sound and prices of the product are very competitive.

Particulars Selling price Margin Retail priceToned milk 1 Ltr 16.00 0.56 15.44



Homogenized 1Ltr 18.00 0.63 17.37Double toned 250 ml 3.50 0.25 3.25Curds 500gm 10.00 0.75 9.25Curds 200gm 5.00 0.40 4.60Butter milk 200 ml 4.00 0.60 3.40

Some VAT applicable MAMP:

Particulars M.R.P(Rs) Margin VAT (%) Retail priceGhee 1Ltr 195.00 37.43 12.50 177.27Ghee 500gm(jar) 99.50 18.70 12.50 90.45Ghee 15kg 2925.00 448.87 12.50 2850.00Peda 250 gms 38.00 4.00 4.00 35.36Mysorepak 250 gms

55.00 7.78 4.00 49.11

Mysorepak 500 gms

105.00 14.86 4.00 93.75

Badam powder 500 gms

100.00 19.19 12.50 90.91

Promotion:

They are giving advertisement in newspapers. They also give ads in local channel like city cable. For new launches, they under take publicity through

• Local newspaper (area wise)

• Newspaper (state wise)

• Television

• Hand bills.... etc.

HAMUL supplying milk and milk products to the customers in three districts like Hassan, Chikkamagalore and coorg (Madikeri)

The distribution network means there is a marketing wing needed by the deputy manager of marketing. There are 18 members of distribution trucks for selling MAMP to every agent and also collect the indent for next day. The collected indent will be consumed by marketing staff and will be submitted to the production section of the dairy while sending the milk and its products from the dairy security check will be done by the security people in every shift.

ANNUAL MARKET PLAN FOR DEVELOPMENT ACTIVITIES FOR THE YEAR 2008-09

• Hassan milk union Ltd establish in the year 1977 has been catering efficiently to the needs of the urban and semi urban consumers by supplying pasteurized and assured quality “Nandini” milk and milk products in the jurisdiction covering Hassan, Chikkamagalore and Kodagu districts.

• Over the years, the union has been taking many steps to meet the changing needs of consumers, the availability of milk variants and new milk products have been produced for customer requirement.

• Priority areas for the development of liquid milk market in the union area are identified and necessary action plans have been drawn for implementation during the year 2008-09.The key strategies planned for 2008-09 are as follows:



Increasing the availability of Nandini milk in the market Enhancing effectiveness of consumer awareness programme. Team concept for market development. Creation of grievance redress cell. Constituting effective replacement/leakage policy. Constituting a core group for solving day to day problems. Promoting channel members. Eliciting consumer feedback for quality assurance. Sales promotion activities.

1. INCREASING THE AVAILABILITY OF NANDINI MILK THROUGH OUT THE DAY IN THE MARKET

a) By expanding the retail market in the union Area.

• Introduction of an adhoc milk distribution route to Hassan city from morning 6.00 A.M to 4.00 P.M. at regular intervals to cater to the retailer needs after normal vending hours.

• Identifying the uncovered areas of distribution and appointing new retailers in such areas to expand the local market.

• Introduction of Adhoc day route exclusively for Milk products distribution in the union area.

b) Strengthening the existing milk parlor, depots and day counters:

There are totally 587 retailers, 17 milk parlors, 14-day counters and 16 depots operating in the union area. It is decided it strengthen providing Bottle coolers to retailers at the rate of 50% cost and free supply of insulated boxes and introduction of insulated Transport vehicles to door step of retailers and extended hours of milk supply.

c) Introduction of Toned Milk (250Ml) Sachet in the Market instead of D.T.M during July-08

2. ENHANCING EFFECTIVENESS OF CONSUMER AWARENESS PROGRAMMES:

To persuade consumers, who are purchasing loose milk, or Competitors milk to purchase “Nandini” milk. This objective is most suitable for our union since their market share is less

To create awareness among existing and prospective consumers about:

a) The organization.

b) Quality products and Services available.

c) Health hazards of consuming adulterated milk.

d) Quality and hygienic aspects of sachet milk and milk products.

e) Education programs on “Milk and Health” at schools and public places.



3. TEAM CONCEPT FOR MARKET DEVELOPMENT:

In ordered to achieve highest sales target, it has been decided to constitute functional teams. This team will conduct the following activities.

1. Visit the market along with marketing staff for market development and to increase sales.

2. Organize door to campaign

3. Arrange quality testing at selling point/Public.

4. CREATION OF GRIEVANCE REDRESSAL CELL:

This system to be implemented with the help of following activities.

a. A decided Toll free telephone to the marketing section of Hassan and Kudige Dairy would be provided for benefiting channel members.

b. Further, the telephone numbers and contact person’s name to be published in leading local daily Newspapers and circulated to all the agents’ day counters.

c. The complaints to be addressed immediately and would be rectified within 24 hours.

5. EFFECTIVE REPLACEMENT / LEAKAGE POLICY:

The fallowing measures are planned to overcome the leakage problem.

- Film quality testing programs - Focus on discussions - Segregating leaky pouches at dairy dock before dispatch - Proper Monitoring of Packing Machine- Storing in required temperature before dispatch - Taking proper care during transport to avoid damage.

6. MOTIVATING THE CHANNEL MEMBERS:

A system to motivating and educate the channel members has been proposed for increasing the milk sales. A systematic awareness campaign would be organized and all the Nandini retailers will be contacted. This is planned by meeting them regularly and inviting suggestion from them on a regular basis. Retailers meeting will be conducted once in 6 months. Higher milk sale retailers in a particular districts route will be rewarded.

e) MIS DEPARTMENT:



The assistant manager has the control overall the activities of this department. It helps for collects the information from outside the organization, which are newly adapted in the other organization, there by helps to adapt new technology in the organization.

Manager

Assistants

System operator 1 System operator 2

PRODUCTION DEPARTMENT:

The unit of HAMUL consists all high technology process equipment’s. The process and all mechanized with high technology machines that improve the quality of the milk, increased the production capacity saves time and energy.

WORK FLOW



PACKAGING TECHNOLOGY:

Milk was initially sold door-to-door by the local milkman. When the dairy co- operative initially started marketing branded milk, it was sold in glass bottles sealed with foil. Over the years, several developments in packaging media have taken place. In the early 80’s, plastic pouches replaced the bottles. Plastic pouches made transportation and storage very convenient, besides reducing costs. Milk packed in plastic pouches/ bottles have a shelf life of 1-2 days, that too only if refrigerated. In 1996, Tetra packs were introduced in India. Tetra packs are aseptic laminate packs made of aluminum, paper, board and plastic .milk stored in tetra packs and treated under ultra-high temperature (UHT) technique can be the dairy co-operatives in Andhra Pradesh, Tamilnadu, Punjab, and Rajasthan sell milk in Tetra packs.

a) Uniforms:



All the male employees are provided with 2 pairs of dress and 1 pair of gloves once in a year. All the female employees are provided with 2 saris and 2 blouses. All the employees are provided half a kg of ghee for two notified festivals at free of cost. (Ganesh fest and Ugadi)

b) Conveyance allowance:

For the employees who are maintaining car they are provided Rs 550 per month and for motor cycles above Rs. 350 per month and vehicles equal and below 50cc Rs. 150 and for other Rs. 100 per month.

Product profile

The main product of HAMUL is milk that is processed in number of different categories based on their fat division is

Sl. No. Products Qty. of Fat & SNF Quantity1 Toned Milk 3.5% & 8.5% 500Ml- 1ltr2 Standardized

Homogenized Milk4.5% & 8.5% 500Ml- 1ltr

3 Double Toned Milk 1.5% & 9% 500Ml- 1ltr

NANDINI TONED MILK:

It is a pure milk and most selling milk in Karnataka. It contain 3.0% Fat And 8.5%SNF. It is available in 500 ml and 1000 ml packs.

HOMOGENISED TONED MILK

Nandini Homogenized Milk is pure milk which is homogenized and pasteurized. Consistent right through, it gives you more cups of tea or coffee and is easily digestible. Available in 500ml.packs.



NANDINI FULL CREAM MILK:

This pure milk contains 6.0% fat and 9.0% SNF. It is available in 500 ml and 1000 ml packs. This milk is rich creamier and tastier. It is ideal for preparing home mode sweets and savories.

CURD:

It is thick and delicious. It is available in 200 grams, 500 grams and 1000 grams sachet etc

The price list of Curd: At the end of March, 30, 2008

Sl No Particular Packing Quantity Price in Rs1 Nandini Curd Sachet 200 grams 8 -002 Nandini Curd Sachet 500 grams 10 -003 Nandini Curd Bulk Can 1000 grams 19 -00


Full Cream milk. Containing 6% Fat and 9 % SNF.A rich, creamier and tastier milk, Ideal for preparing home-made sweets & savories.

Available in 500ml. and 1ltr packs.

Nandini Curd made from pure milk. It's thick and delicious. Giving you all the goodness of homemade curds.

Available in 200gms and 500gms sachet.


BUTTER MILK:

Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh green chilies, green coriander leaves, asafetida and fresh ginger. Buttermilk is packaged in 250ml packet.

NANDINI GHEE:

Ghee is made from butter. It is fresh and pure with a delicious flavor. Hygienically manufactured and packed in the goodness of pure ghee. It has a got a shelf life of 6 months at ambient temperatures. It is available in 200 ml, 500 ml, 1000 ml sachet, 5 liter tins and 15 kg tins.

Price list of ghee: At the end of March, 30, 2008

Sl No Particular Packing Quantity Price in Rs1 Nandini Ghee Sachet 50 ml 0012 - 502 Nandini Ghee Sachet 100 ml 0021 - 503 Nandini Ghee Sachet 200 ml 0041 - 004 Nandini Ghee Sachet 500 ml 0099 - 505 Nandini Ghee Sachet 1000ml 0195 - 006 Nandini Ghee

BulkTin 15 kgs 2925 - 00

7 Nandini Ghee Jar 500 ml 0085 - 00

PEDA: Dept. of Food Sci. & Tech, ACH

Nandini spiced Butter Milk is a refreshing health drink. It is made from quality curds and is blended with fresh green chilies, green coriander leaves, asafetida and fresh ginger. Nandini spiced butter promotes health and easy digestion.

It is available in 200 ml packs and is priced at most competitive rates, so that it is affordable to all sections of people.

A taste of purity. Nandini Ghee made from pure butter. It is fresh and pure with a delicious flavor. 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, 5lts tins and 15.0 kg tins.


Peda is very delicious made from pure milk. It can be stored for 7 days and available in 250 grams containing 10 pieces each.

Price list of Peda: At the end of March, 30, 2008

Sl No Particular Packing Quantity Price in Rs1 NandiniPeda10

gramsBox 100 grams 16 -00

2 Nandini Peda 25 grams

Box 250 grams 38 -00

3 Nandini Peda (single)

Single 25 grams 03 -80

DISTRIBUTION CHANNEL:

Chart showing the channels of distribution for milk and milk products:

The milk received from different villages are weighted first with the help of weighted tank which is having a capacity of 500 kgs. The milk is then dumped in to a dump tank with capacity of1000 liters and the transferred to chillers. The chilled milk as then sent for pasteurization. This pasteurized milk is then sent to a cream separation chamber. Where the cream is removed from the milk. This milk is further used for preparing ghee, Peda etc. The separated cream is collected in a container and then transferred to a ghee shedding tank in which the ghee is clarified and then sent for ghee packing. The milk without the cream is for standardization. Where it is tested for fat content SNF (solid not fat) and purity of the milk.

This is again pasteurized and sent to a storage tank, the tank milk from the storage tank is sent to a packing machine where the milk is packed and kept in a cold storage. This milk is ready for dispatch.

COMPANY PROFILE WITH REFERENCE TO MCKENSEY 7-S FRAMEWORK


No matter what you are celebrating! Made from pure milk, Nandini Peda is a delicious treat for the family. Store at room temperature approximately 7days. Available in 250gms pack containing 10 pieces each.


The 7-S framework was developed by the consultants at the Mckensey Company, a very well-known management consultancy firm in United States towards the end of the 1970 to diagnose the causes of organizational problem and to formulate programs for improvement.

1. STRUCTURE:

The functional structure of HCMPSUL is appropriate for an organization with several product lines.

It ensures maximum use of the principle of specialization. Since the workers have performing a limited number of functions, their efficiency would be very high. Hassan milk union has marketing, administration, finance, and MIS department.

Administration Department HCMPSUL has an administration department that takes care and controls all other departments of the union.

The main functions are

• To develop official work procedure and process in order to increase the profit margin.

• To provides an ample opportunities for helping the employee to maintain high level of work.

• To schedule work property so that all jobs are completed on time.

• To maintain responsible quality and quantity standards.

• To provide satisfactory physical or mental environment for employees.

Procurement and Input Department

The procurement and input department is concerned with collection of milk from various DCS.

• To follow up daily procure schedule as per the plan.

• To collect quality of milk by checking fat content. Dept. of Food Sci. & Tech, ACH


• To maintain good relationship with DCS.

• To send procured milk to production unit.

Finance Department

Finance department of the union is well staffed with resource personnel. The department takes care of all the financial transactions of the union. The department is fully computerized.

Marketing Department

Marketing department plays a vital role in determining the future abilities of the company. Its main objective is to distribute goods from producers to the customers. It distributes milk to consumers and also provides consumer education through ad campaigns and participating in various exhibitions.

• To plan marketing programs.

• To analyze marketing opportunities.

• To develop marketing strategies.

• To connect the consumer with the products.

2. STRATEGY:

Hassan milk union is formulating appropriate strategies in order to meet the challenges and to develop and strengthen dairy co-operative movements on the following thrust namely:

• Procurement, processing and marketing

• Quality assurance programme

• Reasonable pricing

Pricing decisions are subject to an incredibly complete array of environmental and competitive forces. HCMPSUL set not a single price, but rather a pricing structure covers different items in its line. This pricing structure changes over time as products move through their life cycle. The organization adjusts product prices to reflect changes in costs and demand and to account for variation in buyers and situations. As the competitive environment changes, company considers when to initiated price changes and how to respond to them.

Hassan milk union produces different milk producers to cater efficiently the variety milk needs of the urban and semi urban consumers of the jurisdiction. Different prices are charged to different types of milk on the basis of FAT and SNF [Solid not FAT]

3. SYSTEM

System refers to all the rules, regulations, and procedures, both formal and informal that complement the organization structure.

Milk Procurement Procedure



The production department is responsible for procurement of raw milk. It consists of two wings called purchase and stores. Purchase wing is processing of raw milk and stores wing is receiving and issuing the same to the user department. Indent is raised by the user department and is registered at stores after verifying the availability of stock at stores. After registration, the indent is forwarded to purchase wing for procurement. At the time of registration of indent if stock is available, it is issued to the user department and the indent is cancelled.

On receipt of indent the purchase wing lends enquires to various suppliers who normally supply the milk and milk products. Then these suppliers submit their offers. After receiving the offers, a comparative statement is made and forwarded to the general manager for recommendations. The General Manager chooses a most suitable offer for placement of purchase order.

On receipt of purchase order, the supplier lends the milk and milk products along with the bills. The products are received at receipt section of the stores and are verified against the specification laid in purchase order.

Then products/goods inspection note is prepared and forwarded to the GM department for inspection of the milk & milk products supplied. Then the GM inspects the material with quality experts at stores and accepts the same on reject depends upon the quality of products.

If the material is accepted, produce/goods receipt note is prepared and forwarded to account section and the material is stored in specified location. If the product/goods rejected then product/goods receipt note as well as reject note prepared and forwarded to accounts section for making payment to give information to the supplier about the rejection whenever GRN is prepared the stock of the particular items gets update in computer. The rejected producers/goods are returned to the suppliers.

Whenever the union required milk and milk products or any materials they approach stores along with issue voucher against which product/goods issued and consumed Periodic stock verification is conducted at stores to check the inventory

4. SKILL:

Designation Qualification Experience (in year)M.DManagers: Finance MIS

Marketing

OfficersTechnical WorkersLaboratoryWorkers

Other workers

B.Sc. (Agri), MSc (Dairying)

B.Com., M.ComM.Sc. Diploma in Computer ScienceBBM, M.Com., PGDM in MarketingB.Com, BBM, BAITIM.Sc., in Bio SciencePre university, B.A., Secondary School

19

20

15

108-124-62-33-2

To import required skill, Hassan Co-operative milk producers’ society conducting training programme i.e., both on the job training and off the job training which increases the knowledge and skill of an employee for doing the job.

On-the-Job Training Method



Under this method, the individual is placed on a regular job and learns under the supervision of guidance of the instructor.

Hassan milk co-operative society provides On-the-Job training according to the need. For this method of training, they are inviting experts from various training institutions. This type of training will be conducting once in three months/six months/ a year.

The methods of on-the-job training, which are adopted by Hassan milk union, are as follows:

Coaching

The trainer is placed under a particular supervision that functions as a coach in training the individual. Hassan milk union provides coaching in order to fulfill the organization requirements. To give coach they are inviting experts from various institutions like National Dairy Development Board (NDDB), and sometimes top managers of the organization etc.

Job Instructions

The union conducting this type of training at the time of selected new employees. Under this method the experts or the superior explains to the trainee the way of doing the job and allow him to do the job.

Off the Job Training

Under this method of training, trainee is separated from the job situation. Here employee can place his entire concentration to learn rather than spending time in performing job.

Visible Training

Under this method, actual work condition is stimulated in a classroom. Hassan milk union sends its employees to National Dairy Development Board (NDDB) and Confederation for Indian industries (CII) and NDDB Anand for technical training. This type of training is commonly used for training individuals for technical and clerical job.

Seminars

Under this method, the individual give seminar on selected topic. Supervisory personnel given seminars in difference institutions like NDDB Anand, NDDB E-Board, and Confederation of Indian Industries (CII) etc.

Role Playing

Under this method participant plays the role of certain characters, like general manager, marketing manager, technicians, workers and the like. The union provides this training to manager/employees in order to develop the interpersonal relationship between the employees.

5. STYLE:

The management of HCMPSUL follows the style as in other government organization. Each employee is accountable to his superior and each leads his subordinates.

Top down Decisions

• Fixing the targets to the employee and the workers who are working in the organization.

• Reducing or increasing the price of the product

• Policy issues



Example to conclude the decision-making parameter pertaining the day-to-day operation to conclude the style of functioning.

The manager of the purchasing department selects the Material suppliers. The manager of the purchasing department has the authority to select the supplier for providing the necessary raw materials for the production function. The suppliers are selected on the basis of the tender. Which one has quoted the lowest price for the materials, that vendor will be selected as a supplier for the raw material, which is required for the production.

6. STAFF:

Staff refers to the organizations human resources. Management is concerned with the accomplishment of objectives by utilizing physical and financial resources through the efforts of manpower.

Duties and responsibilities of technical officers [quality management] in HCMPSUL

• To take overall in charge of quality management.

• To check the quality of milk, this is taken by DCS.

• To check quality of the milk and register, before sending to the market.

• To check the weight, quality, of milk and products according to the section PFA/ AGMARK/weight/measures.

• To co-ordinate with the production department to make correction if any complaints from market.

• To propose to the general manager to purchase the equipments, which are required for laboratory?

• To maintain all records of laboratory equipments and quality control and send the all records to the general manager.

Duties and Responsibilities of Production Manager

• He shall be overall in charge of production/plant section.

• To allot, monitor and supervise the work of the subordinates.

• To make correspondence and maintain all files/documents of products.

• To recommend the leave of his subordinates and make alternate arrangements during their absence on leave period.

• He shall ensure and implement cost service measures to production section.

• To plan and implement the disposal of excess milk in bulk sales and if shortage, arrangement to get milk from inter dairy as per requirements.

• He shall plan well in advance requirements of chemicals/detergents on any other material of the production section.

• He shall take care of entire plant and machinery.

Duties and Responsibilities of Marketing Officers

1. To fix necessary targets to the retailers, wholesalers, and depots, day counter and milk parlors.



2. To take necessary actions to appoint retailers/DS/MP in the new extension.

3. To adopt necessary extension programs for consumer awareness.


Hassan Milk Union limited report

Documents

Transcript of Hassan Milk Union limited report