An organisational study at kmf mother dairy yalahanka new

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1. AN ORGANISATIONAL STUDY AT KMF MOTHER DAIRY YALAHANKA, BANGALORE

INDIAN ACADEMY Degree College, Bangalore 560-043 Page 1


INTRODUCTION
As MFA students our aim should not be only to learn theoretical concepts in the classroom, but it
becomes more important as how we apply those concepts in practices.
In present scenario the world is developing so fast, and thus the technological and application
theory is changing at a greater phase. The training inculcates students to think out of the box,
rather than emphasizing within the box. We are coming across many modern theories and
implementation of machineries, to start new business. We must have the knowledge of theories
and practical, through it, the student can able know about how to apply their mind in the real
business world.
This Internship training is to create awareness about the industrial environment amongst the
students. Such Industrial visit also plays vital role in MFA internship training.
The importance of industrial visit and project preparation has been widely accepted in the
education institutions. Thus knowing the importance of such practical visit, our college is
providing with such a programme to enhance the overall development of the students.
“MOTHER DAIRY” gave me the golden opportunity to carry out my visit in such a great
organization. I have prepared the detail report regarding the “Potential and future of dairy
Industry”. I have tried my best to collect all necessary information relating to the project work.
OBJECTIVES OF STUDY
During these two weeks of internship training, working along with the colleagues and
communicating clients of Internship Company helped to maintain a good relation with the
company. It also helps to parties and improve the different skills during education su as:
 To get exposed to the organization cutler.
 To get the experience of working in industry.
 To study the organization chart.
 To understand Departmental functions.
 To apply theoretical aspects in working in industry.

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INDUSTRY PROFILE
Karnataka Cooperative Milk Producers' Federation Limited (KMF) is the Apex Body for the
dairy co-operative movement in Karnataka. It is the second largest dairy co-operative amongst
the dairy cooperatives in the country. In South India it stands first in terms of procurement as
well as sales. One of the core functions of the Federation is marketing of Milk and Milk
Products. The Brand "Nandini" is the household name for Pure and Fresh milk and milk
products. KMF has 14 Milk Unions covering all the districts of the State which procure milk
from Primary Dairy Cooperative Societies(DCS) and distribute milk to the consumers in various
Towns/Cities/Rural markets in Karnataka.
The dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producers of milk and value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the country. During 1997-
98, the States (Delhi-Haryana-Uttar Pradesh) had 17574 million tones production capacity,
which rose to 29719 million tons by the year 2012. In addition to many processing plants, many
government co- operative societies and chilling centers have being made. About the Indian dairy
Industry In India, the dairy sector plays an important role in the country’s socio-economic
development and constitutes an important segment of the rural economic.
Dairy industry provides livelihood to millions of homes in village, assuring supply of quality of
milk and milk products to both urban and rural areas. With view to keeping pace with the
country’s increasing demand of milk and milk products, the industry has being growing rapidly.
According to research report “Indian Dairy Industry Analysis” India is world’s largest milk
producers accounting of around 17% of the global milk production. Besides, India is also one of
largest consumers of milk and milk products. Due to rich nutritional qualities, the consumption
of dairy product has being growing exponentially in the country, and considering such facts and
figures, my study anticipates that the milk production in India will grow at a CAGR of around
4% during 2012 to 2015.
With rising use of dairy product, the secondary market of dairy product has been flourishing, my
report observed. Covering the necessary aspects of the Indian dairy industry, the study facilitates
knowledge about its current market scenario and future growth. Analyzing the past and current

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state of the industry, the report tries to find out how trends like the entry of international
companies and packaging are attracting the consumers and heeding towards further growth in the
market. This way, it presents a clear picture of the direction, in which the industry is likely to
proceed in the coming years. The government is taking several initiatives and running plans and
programs like National Diary Plan and Intensive Dairy Development Program to meet the
growing demand for milk in the country.
Our report talks about such schemes, and government regulations to present an objective and
balanced picture of the industry. The study also discusses the opportunities and strengths of the
dairy market in a complete SWOT analysis, and provides an insight into the competitive
landscape. We hope that our comprehensive research will help clients align their business
strategies as per market dynamics, and make sound investment decisions.
NDDB National Dairy Development Board
(NDDB) was founded to replace...
 Exploitation with empowerment.
 Tradition with modernity.
 Stagnation with growth.
An instrument for the development of India’s rural transforming dairying into an instrument for
the development of India’s rural people. Prior to NDDB, the milk market was vastly governed by
local private dairy and these dairies were neither producing milk nor they were animal breeders
and hence law of demand and supply was unheard by those whose intentions were purely to
make more money from both the sides – that is from producers of milk (farmers) and consumers
at large. Establishment of NDDB broke that spell and traders were side lined in due course.
The National Dairy Development Board was created in promote, finance and support producer-
owned and controlled organizations. NDDB’s efforts are co-operative principles and the Anand
Pattern of Co-operation

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Philosophy of NDDB
 Co-operation is the preferred form of enterprise, giving people control over the resources,
through democratic self governance.
 All beneficiaries, particularly women and under privileged, must be involved in co-
operative management and decision making.
 Technological and evolution search for better way to achieve the objective in the
dynamic market.
 The NDDB was created in 1965, fulfilling the desire of the Prime Minister of India – the
late LalBahadurShatri – to extend the success of the Kaira Co-operative Milk Producers
union (Amul) to other parts of India.
 That success combined the wisdom and energy of farmers with professional management
to successfully capture liquid milk and milk product markets while supporting farmer
investment with inputs and services.
NDDB began its operations with the mission of making dairying a vehicle to a better future for
millions of grassroots milk producers. The mission achieved thrust and direction with the
launching of “Operation Flood”, a programme extending over 26 years and which used World
Bank loan to finance India’s emergence as the world’s largest milk producing nation. Operation
Flood’s third phase was completed in 1996 and has to its credit a number of significant
achievements.
As on March 2001, India’s 96,000 dairy co-operatives integrated through a three tier co-
operative structure – “The Anand Pattern”, owned by more than ten million farmers, procure an
average of 16.5 million litres of milk every day. The milk is processed and marketed by 170 milk
producers’ co-operative unions which, in turn, own 15 state co-operative milk marketing
federations.
NDDB also promotes other commodity-based co-operatives, allied industries and veterinary
biological on an intensive and nation-wide basis. Dr. (Ms) Amrita Patel serves as the Chairman
of NDDB; Dr. Varghese Kurten was the founder Chairman.

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OPERATION FLOOD
Introduction to Operation Flood Operation Flood has been one of the world’s largest rural
development programmes. It was started by India’s National Dairy Development Board (NDDB)
in 1970. One of the largest of its kind, the programme objective was to create a nationwide milk
grid.
Operation Flood strategy
The bedrock of Operation Flood has been village milk producers’ cooperatives, which procure
milk and provide inputs and services, making modern management and technology available to
members. Operation Flood’s objectives included:
 Increase milk production (“a flood of milk”)
 Augment rural incomes
 Reasonable prices for consumers
 Programme Implementation
Implementation of Operation Flood
Operation Flood was implemented in three phases.
Phase I
Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter oil gifted by
the European Union then EEC through the World Food Programme. NDDB planned the
programme and negotiated the details of EEC assistance.
During its first phase, Operation Flood linked 18 of India’s premier milk sheds with consumers
in India’s four major metropolitan cities: Delhi, Mumbai, Kolkata and Chennai.
Phase II
Operation Flood’s Phase II (1981-85) increased the milk sheds from 18 to 136; 290 urban
markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000
village cooperatives covering 4.25 million milk producers had become a reality. Domestic milk
powder production increased from 22,000 tons inthe pre-project year to 140,000 tons by 1989,

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all of the increase coming from dairies set up under Operation Flood. In this way EEC gifts and
World Bank loan helped to promote self-reliance. Direct marketing of milk by producers
cooperatives increased by several million liters a day.
Phase III
Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the infrastructure
required to procure and market increasing volumes of milk. Veterinary first-aid health care
services, feed and artificial insemination services for cooperative members were extended, along
with intensified member education. Operation Flood’s Phase III consolidated India’s dairy
cooperative movement, adding 30,000 new dairy cooperatives to the 42,000 existing societies
organized during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of women
members and Women’s Dairy Cooperative Societies increasing significantly. Phase III gave
increased emphasis to research and development in animal health and animal nutrition.
Innovations like vaccine for Theileriosis, bypass protein feed and urea-molasses mineral blocks,
all contributed to the enhanced productivity of mulch animals. From the outset, Operation Flood
was conceived and implemented as much more than a dairy programme. Rather, dairying was
seen as an instrument of development, generating employment and regular incomes for millions
of rural people.
Achievements of Operation Flood
“Operation flood can be viewed as a twenty year experiment confirming the Rural Development
Vision” (World Bank Report 1997c.)
1. It resulted in making India the largest producer of milk and milk products, and hence is also
called the White Revolution of India. It also helped reduce malpractices by milk traders and
merchants.
2. This revolution followed the Indian Green Revolution and helped in accelerating organic,
decentralized development across the board, alleviating poverty by offering gainful employment,
and also providing access to better nutrition.
3. Operation Flood has helped dairy farmers direct their own development, placing control of the
resources they create in their own hands.

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4. A National Milk Grid links milk producers throughout India with consumers in over 700
towns and cities, reducing seasonal and regional price variations while ensuring that the producer
gets fair market prices in a transparent manner on a regular basis.
Objectives
KMF is a Cooperative Apex Body in the State of Karnataka representing organizations of milk
producers' and implementing around dairy development activities to achieve the following
objectives:
 To ensure assured and remunerative market round the year for the milk produced by the
farmer members.
 To make available quality milk and other premier dairy products to urban consumers.
 To build & develop village level institutions as cooperative model units to manage the
dairy activities.
 To ensure provision of inputs for milk production, processing facilities and dissemination
of know how.
 To facilitate rural development by providing opportunities for self employment at village
level, preventing migration to urban areas,introducing cash economy and opportunity for
a sustained income.

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COMPANY PROFILE



The team members
Name Designation Division Call @
Sri. C.Narasimha Reddy Director Administration 080-22179002
Smt. Swarna C General Manager(Tech) Administration 080-22179058

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Sri. Suresh Kumar R
General
Manager(Marketing)
Marketing 080-22179049
Smt. Padmavathi R
General
Manager(Systems)
Computer
Section
080-22179007
Dr. Ramesh C.N
GeneralManager
(Admin & Purchase)
Administration 080-22179003
Sri. Ubedulla Khan Manager (Marketing) Marketing 080-22179008
Sri. Vaitheeswaran N Manager (Marketing) Marketing 080-22179009
Sri. Rangaswami P.H. Manager (Engineering) Engineering 080-22179055
Smt. VijayalakshmiRai G.B Manager (Dairy) Production 080-22179025
Kum. Vani C.H Manager (Chemical) Systems 080-22179076
Smt. Lakshmi V.A Manager (Civil) Civil 080-22179011


MOTHER DAIRY

HISTORY:
Karnataka Cooperation Milk Producers Federation Limited(KMF) is the Apex Body in
Karnataka representing Dairy Farmer's Cooperatives.It is the second largest dairy cooperative
amongst the dairy cooperatives in the country. In South India it stands first in terms of
procurement as well as sales. One of the core functions of the Federation is marketing of Milk
and Milk Products.The brand "Nandini" is the Household name for pure and fresh milk and milk
products.
Mother dairy is essential liquid milk processing and marketing unit with the objective of finding

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a suitable urban market for the milk produced by the rural producers.First it handled 2 lakhs
liters/day.Now it handles 7. 5 lakhs liters/day.
KMF has 13 Milk unions throughout the state which procure milk from primary Dairy Co-
operative societies (CDS) and distributes milk to the consumers in various towns/cities//rural
markets in Karnataka.

UNITS OF KMF
1. Mother Dairy,Yalahanka,Bangaluru.
2. Nandini Hi-Tech Product Plant,Chennarayapatna.
3. NandiniMikProducts,KMF Complex,Bangaluru.
4. Cattle Feed Plants at Rajanakunte/Gubbi/Dharwad/Hasana.
5. Pouch Film Plant at Munnekolalu,Marathahalli.
6. Nandini Sperm Station(formerly known as Bull Breeding Farm & Frozen Semen Bank at
Hesaragatta.
7. Central Training Institute,Bangalore & Training Institute at Mysore/Dharwad.
8. Sales depots at Bangalore,Mysore,Mangalore,Hubli,Gulbarga & Kannur.
MOTHER DAIRY
Mother dairy, a unit of Karnataka Milk Federation,which is located in Yelahanka in Bangalore
North Taluk, was established in a total area of 28 acres during under Operation Flood-II with a
processing capacity of 2 Lakh liters per day with an additional cost of Rs.3.64 corers.Again the
processing capacity increased to 7.00 lakh liters at a cost of Rs.20.86 corers.Total investment for
this project is Rs.30.47 corers.

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COMPANY AT A GLANCE
Name : Mother Dairy unit of Karnataka Co-operative Milk
Producers Federation Ltd.
Address : Mother Dairy,G.K.V.K Post,Yelahanka,Bangalore-65
Constitution: Public sector undertaking.
Year of establishment:7/12/1984
Trade mark:Nandini
Proposed Products: Milk,Ghee,,Ice-cream,skin milk powder,Paneer,S.F.M(bottles),F.M in
UHT 200ml pack.
Land covered:28.09 acres at Yelahanka.
Total investment: Rs10.61 corers.

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VISION:-
1. Quality assurance from cow to consumer.
2. To vanish the scarcity of milk.
3. To fulfill the objectives of the white resolution.
4. To strengthen the living standards of rural people.
5. Product diversity.
6. Avoiding post harvest losses.

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MISSION:-
1. Procuring the raw milk from the local farmers at a fair price.
2. Pasteurization and homogenizing of the procured raw milk.
3. Producingthe other milk products.
4. Transporting the pasteurized milk in various quantities from processing plant to the urban
areas.
5. Supply milk to the consumer at a reasonable rate.
6. Developing good infrastructure facilities.
Heralding economics,social and cultural prosperity in the lives of our milk producer members
by promoting vibrant,self-sustaining and holistic cooperative dairy development in Karnataka
State.
Quality policy of mother dairy
The KMF has accorded highest priority for the quality of milk products.Hence, the holistic
approach of 'Quality Excellence from Cow to Consumer' has been adopted wherein constant
efforts to improve quality at all stages of milk in production,procurement,processing and
marketing are being made.
"Every employee of mother dairy will strive for customer satisfaction by providing hygienic
quality milk and milk products at competitive rates and timely delivery through continual
improvement".

OBJECTIVES
KMF is a co-operativeApex body in the state of Karnataka representing organizational of milk
producers and implementing all round dairy development activities to achieve the following
objectives-

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 To ensure assured and remunerative market round the year for the milk produced by the
farmer members.
 To make available quality milk and other premier dairy products to urban consumers.
 To build and develop village level institutions as co-operative model units to manage the
dairy activities.
 To ensure provision of inputs for milk production,processing facilities and dissemination
of know how.
 To facilitate rural development by providing opportunities for self employment at village
level,preventing migration to urban areas, Introducing cash economy and opportunity for
a sustained income.

NATURE OF THE BUSINESS CARRIED
PROCUREMENT
Mother dairy is procuring on an average 4 lakh of milk per day from Kolar Milk Union's chilling
centers such as Chintamani,Sadali and Gowribidanur chilling centers of Kolar milk union and
dairy co-operative societies which are processing Bulk Milk coolers,through road milk tankers.
The Dairy is processing and distributing on an average 2090 lakh liters of milk,it is planned to
increase the processing capacity of the Dairy.
PRODUCTION
Mother Dairy has a unique nature of homogenizing the milk and selling it to the consumers
through Bulk Vending Booths and FRPtanks.In addition to production of Toned milk in Sachet,it
also produces Full Cream Milk in Sachet(6.0% FAT and 9.0% SNF) and products like
Butter,Ghee,Curds,Ice-cream, as well as Buttermilk in Sachets.

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ESTABLISHED OF 30MT POWERPLANTS
To facilitate conversion of surplus milk of unions in the project area,Karnataka Milk
Federation has established a powder plant during the year 2002 with an outlay of Rs.22.15crores
with a capacity to convert 3lakh liters of milk into 30 tones of milk powder.The surplus milk of
Bangalore,Kolar,Mysore,Hassan,Mandya and Tumkur Milk Unions is being accepted for
conversion.This benefits the member Milk Powder manufactured in this unit is of international
standard and has been exported during last year through private contractors.

ICE CREAM MANUFACTURING UNIT
Ice cream manufacturing was with the small-scale industries till 1997.For the first time
the government of Indian allowed the cooperatives to manufacture ice cream and hence the
Karnataka Milk Federation could establish an ice cream plant in the Mother Dairy premises
during the year 1997 with an installed capacity to manufacture 3000 liters of ice cream per day.
Mother Dairy started distributing ice cream under the brand name of AMUL through Gujarat
Cooperative Milk Marketing Federation. The meet the increasing demand,the capacity of the
plant was increased to produce 1000liters of ice cream per day during January 2006 at a cost of
Rs.3.69 corers.The ice cream is also being marketed in Bangalore under the brand name
ofNANDINI.

SPECIAL FEATURES OF MOTHER DAIRY:
1. Mother Dairy is the first among the Dairy plants in south India to obtain ISO-9002 and
HACCP-15000 certificate from the Bureau of India Standard and is in continuous process
to further obtain ISO-22000 certificate in the year 2008.
2. An 'Extra Grade Certification' has been awarded to the milk powder manufactured by the
Milk Powder Plant.
3. An online computer system carrying out all major transactions was installed during the

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year 1993.Presently,the computer system is being upgraded at an estimated cost Rs.1.05
corers.
4. Consistency in the process of profit making since 1988-89.
5. With a unique feature of Glycol chilling, on an average,1.2 lakh liters of milk was
supplied to Calcutta Mother Dairy for many years.
6. Mother Dairy has 75 BVB booths,now booths converted into 140 Shoppers.
7. Mother Dairy has received Export license for Ghee and SMP.
8. Mother Dairy has received a national level Energy conservation award during the year
2006-07(Merit Certificate)and a state level Energy conservation award during the year
2006-07(First Prize).

COMPUTERIZATION
Presently all majortransaction is being carried out through the its online Computer System.
The major areas covered are:
1. H R,Attendance and Payroll
2. Purchase and store
3. Sales and Distribution.
4. Procurement and Processing:-Weigh Bridge,Q C,Processing,Products,Ice Cream Plant.
5. Finance:-Receipt and Payment,Invoice,Taxation,Sub ledger and Book of Accounts.
6. Engineering:-Boiler,Electrical,Mechanical,Transport Pre-pack and Refrigeration.
7. Maintaining databases of all the above said transactions.
8. Milk Products distribution.
Modernization and Expansion of Mother Dairy

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With the increase in demand for supply of milk products to the Bangalore City and Supply
processed to the powder plant, the existing capacity of 4 lakh liters per day is not
sufficient.Hence, it is envisaged to increase the processing capacity to handle 7 lakh liters per
day.
Infrastructure facility
Mother dairy provides so many infrastructure facilities for the workers which are as follows:
 Production Block.
 Administration Block.
 Security and time office.
 Tanker parking.
 Fueling point
 Garage Block
 Canteen
 Working amenities
 Go down
 Hospital
 Dressing room
 Future expansion
 Coal yard
 Sub station

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Certificates

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Milk Processing & Packing

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 Established with an Initial capacity of 2 LLPD during 1984 and expanded to 7Lakh Litres
processing and 3 Lakh Liters packing per day in 2008.
 Purchase Milk from unions and chilling centers. Also receives surplus milk of Unions
and surplus milk from unions for conversion.
 Stringent quality standards are ensured before receipt of milk.
 Has recently undertaken manufacturing of very improvised quality of Paneer, Yoghurt
and Sterilized Flavored milk.
Milk Powder Plant
 To facilitate conversion of surplus milk, Powder Plant was established during the year
2002.
 Capacity to convert 3.4 lakh litres of milk into 30 tonnes of Milk Powder. Has facility for
manufacturing of Agglomerated Skimmed Milk Powder, Dairy Whitener and Whole
Milk Powder
 Has facility to pack different retail pack sizes of Skimmed Milk Powder & Dairy
Whitener.
Ice Cream Plant
 Established Ice Cream Plant in the year 1997 with an initial Capacity of 3000 litres but to
meet the increasing demand, the plant was expanded to 10000 LPD but presently working
capacity is upto 15000 Ltrs/day .
 The first of its kind in South India under the co-operative sector equipped with state of
the art technology
 Initially Ice Cream was manufactured in AMUL Brand
 Nandini Ice cream Production started from Apr-2000.

Product Plant

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BUTTER
 Butter being one of the major products at Mother Dairy, is manufactured from fresh
cream using state of the art technology.
 Posses two continuous butter making machines of 800 kgs/hr capacity.
 Monthly average production of butter is 440 mt .
 Posses export license for butter and have exported to countries like Armenia, Georgia,
Tbilisi etc.
 Have storage facility of 600 mts of butter.
GHEE
 Ghee a desi product is manufactured from the best quality butter by using the latest
technology.
 Have facility to pack Ghee in sachets, Bag in box, pet jars, standee pouch and tins.
 Monthly average production of Ghee is 133 mts.
 Dispatching monthly 32-40 mts of ghee to the famous holy temple of TirumalaTirupathi.
 Posses export license for the ghee and exported ghee to Dubai.
PANEER
 Is a fresh, nutritive and healthy product manufactured by coagulating milk in an hygienic
environment with good technology, Posses with the Capacity of 1800 kgs per day.
 Paneer is also one of the major product of Mother Dairy is manufactured by the Shubham
milk and available in 200ml packs and in block and diced manner.
 Monthly average production of Paneer is 45 mts
YOGHURT
 Posses with the Capacity of 800 kgs per day.
 Very healthy product which improves the digestion ability is manufactured using milk
with 2% Fat and 11% SNF.

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 Added with real fruit extract and is produced in two flavors presently- MANGO &
STRAWBERRY.
STERILISED FLAVOURED MILK (SFM) IN GLASS BOTTLES
 Have capacity to manufacture 2500 liters per day in 5 flavors – Badam, Pista, Rose,
Elaichi and Banana.
 A healthy drink manufactured using Double Toned Milk with added sugar, color and
flavors.
 Monthly average production of SFM is 50000 ltrs.
UHT (ultra-heat treatment)
 Have capacity to manufacture 42500 liters per day.
 UHT milk packaged in a sterile container, if not opened, has a typical unrefrigerated shelf
life of six to nine months.
 UHT flavored milk is available in 200 ml and 160ml tetra packs in 4 different flavors like
Badam, Pista, Strawberry.
 UHT milk Shake is available in 200 ml and 160ml tetra packs in 4 different flavors like
Vanilla, Butterscotch, Chocolate./li>
 UHT Plain Lassi and Mango Lassi is available in 200 ml and 160ml.
 UHT Butter Milk is available in 200 ml and 160ml tetra packs.
 UHT Good life is available in 200 ml and 160ml.
Marketing
 Mother Dairy is responsible in providing quality milk & milk products to the consumers
in Bangalore City through its network of different types of Retailers viz. Sachet, BVBs
and FRPs.
 The Dairy is distributing on an average 3.5 lakh liters of milk per day to the consumers in
Bangalore City. The Dairy is also selling 40,000 Kgs of curds every day.

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 Nandini Shoppers serve as Modern Format Shops for selling entire range of Nandini
products all through the day and ensure availability and reach ability to customers.
Computer section


ERP system is responsible for real time integration of management information by controlling
the flow of information across an entire organization. Adopting this technology, all the
transactions are carried out online, hence the dairy stands unique among KMFunits. With this
technology in place, dairy has achieved the following:
 Integrated Information.
 Enhanced and efficient technology.
 Better Resource Management
 Accuracy and Consistency.
 Easy data accessibility

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 Increased security.
 Transparency
 Providing Business and Financial Solution.
 User Friendliness.
 Easy reporting.
 Better Communication.
Engineering

 Equipped with fully automated SCADA based sate of Art Refrigeration System
 Adopted Environmental Friendly (Emission free) LPG / CNG as fuel for boilers.
 Automatic Centralized CIP system.
 Equipped with semi automated advanced milk separators.

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 26

 Will be equipped shortly with UHT flavored milk plant with advanced
technology with higher capacity to cater milk to school children of Karnataka
Government.
Finished Goods Stores


 Has facility to store 1200MTs of Milk Powder.
 Has facility to store 50 MTs of Ghee.
 Has facility to store 600MTs of Butter.
 Has facility to store 15 MTs of Good life (in UHT packs).
Milk
 Milk is lacteal secretion of the mammary glands of mammals. It is an almost
nearly complete food for humans.

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 Milk provides essential nutrients like vitamin-B12, calcium for healthy teeth and
bones, carbohydrates for energy, protein for growth, potassium for strengthening
of nervous system, riboflavin for health of the skin and zinc for immunity
against diseases.
 The product may be consumed directly, boiled, or used for preparation of
beverages and Indian dishes.
 The product has to be stored below 4 deg C
 The product has to be consumed immediately upon opening or boiled and kept
upon opening until use
 May be used by people of all age groups.
 Shelf life : Two days and declared in terms of use by date when stored @ 4
o
C
Curd


 White thick coagulated mass having fine smooth body with little or no whey
separation.
 Product may be consumed directly and also in preparation of dishes.
 Good for people of all age groups.
 Shelf life : 2 days when stored at 4
o
C or below.

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 28

Ghee

 Agmark Special Grade Ghee
 Made by clarification of milk cream or white unsalted butter
 Used directly or in preparation of any dishes.
 To be stored in cool and dry place.
 Shelf life : 6 months when stored @ room temperature.
Butter

 Unsalted butter made by churning of cream
 Creamy yellow product with smooth texture
 Used to prepare Ghee or directly utilized in any food preparation.
 To be stored -20
0
C.
 Shelf life : 1 year when stored @ -15
0
C to -25
0
C

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 29


Milk Powder (Available in three forms)





Skim Milk Powder
 Creamy white smooth granular free product that dissolves instantly when put
into water and rich in Lactose and milk protein.
 Contains total Fat of 1.0g.
 To prepare a glass of Milk, add 5 parts of water by volume to 1 part by volume
of skimmed milk powder.
 Used as ready to drink milk or for preparing any milk delight.
 To be stored in a cool and dry place. After opening pack, store in airtight
container.
 General consumers of all age groups & institution.
 Shelf life: 1 year from the date of packing when stored in a cool and dry place.

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Dairy Whitener

 Creamy white smooth granular free product that dissolves instantly when put
into water and rich in Lactose and milk protein.
 Contains total Fat of 2.0g with added sugar.
 To prepare a glass of rich creamy sweetened Milk (200ml), add 31/2 heaped
spoons of Dairy Whitener to a glass (180ml) of lukewarm water
 Used as ready to drink milk or for preparing any milk delight.
 To be stored in a cool and dry place. After opening pack, store in airtight
container.
 General consumers of all age groups & institution.
 Shelf life : 1 year from the date of packing when stored in a cool and dry place.
Whole Milk Powder
 Creamy white smooth granular free product that dissolves instantly when put
into water and rich in Lactose and milk protein.
 Contains total Fat of 26 g with added sugar.
 To make milk which is more thicker, add 5 parts of water by volume to 1 part by
volume of this whole milk powder.
 Used as ready to drink milk or for preparing any milk delight.

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 To be stored in a cool and dry place. After opening pack, store in airtight
container.
 General consumers of all age groups & institution.
 Shelf life: 6 months from the date of packing when stored in a cool and dry
place.
Ice Cream

 Ice cream is a frozen ready to eat dairy product containing both pasteurized and
unpasteurized components.
 May be used directly or as topping in any sweets, salads, deserts etc..
 To be stored in -18
0
C to -28
0
C
 Used by public of all age groups.
 Shelf life : 12 months when stored at -18
0
C or below..
Paneer

 Acid coagulated product with smooth granular and rubbery texture prepared
from pasteurized milk.

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 Used in preparation of curries and other Indian dishes.
 Product need to thawed to normal temperature by keeping the product at room
temperature for 20 mins before use after removing from the refrigerator.
 To be stored @4
0
C until use.
 General consumers of all age groups & institution.
 Shelf life: 30 days from the date of packaging when stored at 4
0
C or below.
Yoghurt

 White thick Coagulated mass having fine smooth body with little or no whey
separation with added color, flavor and fruit extracts.
 Sweet and slightly sour in taste.
 To be stored @ less than 4 -8
0
C.
 The product may be consumed directly and immediately after opening the cup.
 Yoghurt improves the digestion ability hence a very healthy product for all.
 Available in Mango and Strawberry flavors.
 Shelf life: 15 days under refrigeration temperature of 4
0
C.

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Sterilized Flavored Milk (Bottles & UHT)

 Prepared from Double Toned Milk having minimum Fat and SNF with different
food grade flavors.
 Wholesome food consisting of Fat, Proteins, Carbohydrates, Minerals and
Vitamins.
 Used directly as a delicious, tasty and healthy drink. Taste best when chilled.
 To be stored in a cool and dry place.
 Shelf life: 180 days from date of packing when stored in a cool and dry place.
 SFM bottles are available in unitflavor or Assorted flavour boxes.
 Also available in 6 bottles of attractive family pack for easy handling.
Spiced Butter Milk (UHT)

 Prepared from curds of toned milk having minimum fat and SNF with dry spice
mixture.
 Used directly and preparation of Indian dishes.

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 To be stored @ less than 4
0
C.
 The product may be consumed immediately after opening the pack.
 General consumer of all groups.
 Shelf life: Two days and declared in terms of use by date when stored at below
4
0
C.
Sweet Lassi (Plain and Mango)

 Prepared from curds of toned milk having minimum fat and SNF with added
sugar.
 Used directly and preparation of Indian dishes.
 To be stored @ less than 4
0
C.
 The product may be consumed immediately after opening the pack.
 General consumer of all groups.
 Available in Mango flavor also.
 Shelf life: Two days and declared in terms of use by date when stored at below
4
0
C.

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 35

Instant Payasa Mix

 NandiniKheer - a rich traditional Indian dessert which is easy and quick way of
recreating a sensational taste and experience.
 A blend of specially chosen thin, roasted sevai, milk solids, sugar, cashew,
raisins and a rich aroma of natural elaichi.
 No need to add milk.
 Ideal for all special occasions or just a regular meal this easy dessert will satisfy
one and all.
 Instant treat for guests, get- together parties and also suitable for caterers.
 Highly nutritional dessert with a calorie of 432Kcal , 63 gm carbohydrates, 14.8
gm protein,13.5 gm fat and 602 mg calcium for every 100 gm of the product.
Diced Paneer
 Nandini Diced paneer, a convenient ingredient for every Indian Curry.
 No hassles of cutting, readily available in uniform sized cubes suitable for
preparation of snacks and starters for a great meal.
 A long shelf life of 30 days when stored at 0 to 4 deg.C temperature.
 High protein diet with a energy of 297 K.cal, 22.7 g fat, 18.6 gm protein, 4.5 gm
carbohydrate, and 260 microgram Vitamin A for every 100 gm.

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 36

Probiotic Sugar free frozen food
 Nandini care for dieters and diabetics
 Nandini Sugar free Probiotic Frozen food is a frozen dairy product obtained by
freezing a pasteurized mix prepared from the ingredients such as Milk and milk
solids with low fat, Sucralose (Low calorie artificial sweetener), Prebiotic Inulin
and Fructooligosaccharide along with Multirole. This Pasteurized mix after
ageing is added with Probiotic bacteria which have multiple health benefits.
 This frozen food is specially formulated with chosen ingredients for not only
calorie conscious but also regular ice cream consumers and diabetics.
MatkaKulfi Ice cream
 Nandinimatkakulfi is a rich traditional Indian ice cream variety.
 It reminds us of traditional Indian cuisine enjoyed by children and elders as well.
 It is made by condensing milk with addition of sugar, cardamom, pista and
natural flavours suitable for every occasion.
 It has a nutritional value of 137 Kcal energy, total fat 8.9 g, total carbohydrates
11.2 g, protein 3.1 g and calcium 95 mg.
Casatta Ice cream

 Nandinicasatta Ice cream is being presented in attractive rainbow Colored half
moon shaped block.
 It is a combination of three flavors of Vanilla, Strawberry and green pista Ice
cream with a topping of Cashew and sauce.
 It is very nutritious, tasty and liked by all age groups.

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 37

 This rich Ice cream has a nutritional value of 158 kg.cals with a total
carbohydrate of 14 g, protein 3g, fat 10g and calcium 79 mg.
Real Thick Curd

 Nandini Real thick curd - a nutritious fermented milk product with high milk
solids ideal for being a part of Indian daily diet.
 Made from homogenized milk cultured with high quality imported direct vat set
culture which contributes to high therapeutic value of the product.
 Refreshing health food that is easily digestible and of uniformly thick
consistency for direct use or as an ingredient in the preparation of other foods.
 High protein food with a nutritional value of 67 K.cal of energy, carbohydrates
5.4g, total fat 3.0 g, protein 4.3 g, minerals 0.7g, Vitamin A 35 µg and calcium
170 mg
Fruit Yoghurt

 Better digestion, great taste and less of illness. Easily digestible with good
therapeutic value, good for all age groups especially children.
 Pure fruity thrill-THE WONDER FOOD

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 38

 It has the goodness of fruits, easier to digest than milk: many people who cannot
tolerate milk either due to protein allergy or lactose intolerance can enjoy
yoghurt.
 Replace salad dressings and milk shakes with Nandini yoghurt to reap the health
benefits of yoghurt
 Nandini yoghurt is available in two different flavors – Real mango and Real
Strawberry. Nandini scooping yoghurt is a fermented milk product prepared by
fermenting homogenized milk with superior quality dairy starters and addition of
sugar, pectin, nature identical flavor, color and real mango pulp and strawberry
crush
SterilizedFlavored Milk in Tetra packs

 Nandini sterilizedflavored milk in tetra packs is available in 200ml packs of 4
different flavors- Badam, Pista, Strawberry, Chocolate prepared by using double
Toned Milk with added color, flavor, added stabilizers
 Commercially sterile safe and nutritious drink. No preservatives added. Suitable
for all age groups.
 Ultra high temperature treated, in a closed presterilized system where milk is
flash heated at 137 deg, centigrade for 4 seconds and quickly cooled to room
temperature and aseptically packed.
 High temperature boiling enables a total destruction of all bacteria in the milk
while preserving all necessary nutrition intact.

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 Extra long shelf life of 6 months achieved by the special six layered tamper
proof packaging done by tetra pack preventing air light and moisture from
entering the pack.
 Needs no refrigeration until opened and Homogenization ensure wholesomeness,
consistently thick and delightful up to last drop.
Mango Lassi

 Refreshing fermented milk drink with added sugar and and real Mango pulp,
color and flavor that suits every season and every occasion.
 Packed in 200ml sachets
 Reasonably priced
Sterilized Butter Milk in Tetra packs

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 40

 Spiced buttermilk is a refreshing drink prepared by diluting curds at the rate of 1:
2 curds and water
 Addition of spices and pectin as stabilizer to the product
 suitable for consumers of all groups.
 Ultra high temperature treated, in a closed presterilized system where Butter
milk is flash heated and quickly cooled to room temperature and aseptically
packed.
 High temperature boiling enables a total destruction of all bacteria in the milk
while preserving all necessary nutrition intact.
 Extra long shelf life of 6 months achieved by the special six layered tamper
proof packaging done by tetra pack preventing airlight and moisture from
entering the pack.
 Needs no refrigeration until opened.
Dairy Whitener

 Sweet, Granular, free flowing product that dissolves instantly when put into
water
 Rich source of milk fat, protein and lactose
 Prepared by drying Whole milk with added sugar and emulsifier
 Energy: 452 K cal, Total fat: 20 g, Total carbohydrates: 48 g, Total Protein: 20 g,
Calcium 1000mg, Sodium 88mg

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 41

 Suitable for preparation of coffee and Tea instantly
 Suitable for General consumers of all age group & Institutions
 Can be used in preparation of Kheer and other milk based sweets
Fresh Cream
 Nandini fresh cream – made out of fresh cow milk and packed in a handy 200 ml
pouch
 Highly nutritious for providing add-on taste to fruit salads, Indian curries
 Can also be used for salad dressings and as garnish to multi cuisines
 High fat product with a nutritional value of 246 K cal energy, 25g of Total fat ,
3.2 g of Total carbohydrates,
2 g of Total proteins and 286 microgram of Vitamin A
 Reaching you at a competitive price

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3.1 ORGANISATION CHART

ORGANIZATION STRUCTURE:


















Human Resource Management at Mother Dairy
DIRECTOR
PERSONNEL ASST
Manager (QC) Manager
(Engineering)
Manager
(Technical)
Manager
(Marketing)
Manager
(Finance)
Deputy
Manager(QC)
Deputy
Manager (Eng)
Manager
(Production)
Deputy Manager
(Mkg)
Deputy
Manager (Fin)
Asst Manager
(QC)
Asst Manager
(Eng)
Deputy
Manager (Pro)
Asst Manager
(Mktg)
Asst Manager
(Finance)
Technical
Officer
(QC)
Technical
Officer
(Eng)
Asst Manager
(Pro)
Marketing
Officer
Administration
(Finance)
Administration
Asst (QC)
Administration
Asst (Eng)
Technical
Officer (Pro)
Administration
Asst Typist
Administration
Asst
Helper Helper

Administration
Asst (Eng)

Helper


Helper


Helper

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“Mother Dairy is one of the leading Dairy” It shares collaborative and friendly relationship with
preferred partners, employees, consumers and other workers involved to it. It maintains a
transparency in handling the above relations and stick to its standards.

The HRM function or Personnel department function in Mother Dairy is indeed vast. All major
activities since working of a worker – from the time of his/her selection in to an organization
until he/she resigns or get retired or leave job for any reason – comes under the preview of HRM.

The HR planning in Dairy is very smooth and transparent. It made Mother Dairy a HUGE BIG
Family of approximately 3000 employees. In Mother Dairy major attention is given on the
welfare and Safety of employees.

Dairy also focuses on developing human value and potential through various bearing and
development activities and provide favorable atmosphere. All these functions are performed by
HR in Mother Dairy.
The functions of human resource department are broadly classified as :
1. Recruitment
2. Training and development
3. Promotion
4. Salary and wages
5. Increments, incentives and bonus
6. Transfers
7. Retirement benefits.
8. Safety.
9. Welfare programmes.

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Recruitment
Recruitment is a process of searching for prospective employees & stimulating them to apply for
the job in the org. Recruitment of an employee is done on the bases of “Human Resource
Planning” carried by Mother dairy Mgt. At Mother dairy recruitment is done through both
sources i.e. internal as well as external sources.
Internal Recruitment:
Recruiting employees internally like promotion, transfers, etc.
External Recruitment:
Recruiting employees form job portals, employment exchange, campus interview,
advertisements. Dairy uses External source of recruitment mostly.
Selection
Selection procedure includes the selecting Right candidate, at Right time, for right job. It is as
follows:
 Application form
 Bio-data analysis
 Short-listing.
 Interviews
 References/security screening
 Ability tests
 Aptitude, intelligence and personality
 Work experience/short term contracts
 Medical checkups.
 Placement/Appointment.

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OBJECTIVES
 Selection of right type of employees.
 Proper orientation and introduction of new employee.
 Individual development.
 Buildup employee morale.
 Good relation with trade union.
 Providing reasonable compensation and remuneration.
 Ensure availability of competent and willing work force to the organization.

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INDIAN ACADEMY Degree College, Bangalore 560-043 Page 46

4.1 FUNCTIONAL DEPARTMENTS
ADMINISTRATION DEPARTMENT
The administration department functions by the administrative officer,KMF Bangalore.The
administrative department of the unit holds all official work responsibility and his direction after
general manager.All the matters regarding preparing of employees attendance,sanctioning of
increments ,promotions,leave etc, are notices by this department and presented to general
manager for this perusal and approval of the operation at the end of one accounting year.
It plays a very important role in the organization. It is primary concern with human relationship
in the organization.A sound human relationship within the organization.Thus,its main objects lay
in the maintenance of the relationship on a basis which consideration of the well being of the
individual.
 Recruitment will be done by the central office.
 Maintenance of seniority list
 Employees to promote under KMF interest
 Private employees trading
Benefits
 Medical facilities are provided as per the law in force.
 Canteen facilities under subsidy rate morning 7.0çlock breakfast
 11'clock lunch and in the evening 7'0 clock dinner for night shift employees
 Free milk ml for employee every day .
 Shoe and uniform
 Washing allowance
 Government holiday payment

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 Cold storage allowance and heat allowances for the staff working in refrigeration and
boiling section
 Motorcycle advance Rs.25000 for two wheelers, festival and advance and solar advance
Rs.10000
 Home travel concession[HTC]for every two years
 Provident fund-but no pension for employees
 Bonus[lower cadre]ex-grain [higher cadre]
 Increment for promotion of small family: it will be paid to all the officers and staff once
in a year based on their performance
Leave:
 Earned leave(EL)30 days per year.
 10 days compensatory leave or 20 days H.P.L(half pay leave)
 15 days casual leave
 Government holidays
 Special casual leave 7 days for sports
 Extraordinary leave for accident, sick 10months for entire service
 Leave encashment
 Maternity leave for female employee is eligible for 6 weeks after delivery(only for 2
times),miscarriage 6 weeks.
 Residential quarters for essential staff.
 House construction or purchase advance 15 months’ salary

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HIERARCHY OF ADMINISTARION DEPARTMAENT




























DIRECTOR
GENARAL MANAGER
(ADMIN)
MANAGER (ADMIN)
DEPUTY MANAGER
ASSISTANT MANAGER
(ADMIN)

AD

S (1) S (2)

AA(1) AA(2)

HELPERS

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4.1.2Production Department

PRODUCTION DEPARTMENT
Production department can be defined as 'an organized activity of transforming raw material into
finished products ‘Production can also be defined as production of goods, which satisfies some
human needs and wants
The production department of Nandini milk products is located in the KMF mother dairy.The
production department in Nandini milk Products performed the function of developing a
procedure transform a set of input elements like man,machine,material,money, into specified set
of output elements like finished goods in assigned quantity and best quality in order to achieve
the organization goals successfully
Production department activities
Mother dairy has a unique nature of homogenizing the milk .In addition production of toned milk
in sachet, it also produces full cream milk in sachet(65 FAT and 9% SNF)butter,ghee,curds in
sachets as well as butter milk. Mother dairy also produces milk for supply to mother dairy,

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Kolkata through rail milk tankers by making use of existing deep chilling facility to 1-2
Degree,C(Glycol Chilling)

Responsibilities
The production manager/technical production officer authorizes the functional supervisors to the
various production activities availing the assistance of quality control specialist,supervisors,
operator and other are under his control.
Objectives of production department
 Pre plan the production activities soon after receiving the intends of quality demanded.
 Execute,coordinate,organize and monitor production activities.
 Ensure process control and quality of the product manufactures.
 Ensure that production meets the planes requirements.
 Designing products and packages.
 To upgrade technical efficiency of production.

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HIERARCHY OF PRODUCTION DEPARTMENT



















MANAGER DAIRY
DEPUTY MANAGER
ASSISTANT MANAGER PRODUCTION
TECHNICAL OFFICER
DAIRY SUPERVISOR
SENIOR TECHNISIAN
DAIRY OPERATOR
HELPER

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Production Department is most important part in any organization, firm, company or co-
operative sectors. Production can be made for the middle users or for the end- users (direct
consumers). Production do the main work of converting raw material into semi-finished or
finished goods, it depends on what kind of production the organization is doing.
In the context of Mother Dairy, people have endless demand for milk and milk products.
MOTHER DAIRY undertakes the procurement of milk and its production likewise satisfying the
needs and demand of people. It estimates the demand and accordingly production is done for
which arrangement of Raw material, finance and provision for selling is made by MOTHER
DAIRY.
The Production Department is interrelated with the Personnel, Finance, and Marketing
Department. On an average 30 million liters of milk is processed by Mother dairy.

PRODUCTION AND PROCESS DEPARTMENT
The main objective of this department is to follow up production schedule as per planed to
maintain close and co-ordinate relationship with other department and ensures toupgrade the
technical efficiency of production. Milk, as it is highly perishable product has toprocessed
immediately to avoid spoilage milk respect to its flavor, texture and taste
Production department is well equipped and has various types of highlysophisticated
machines imported from Sweden and Denmark. Once the milk is received from & I department,
it is first weighed with the help of weighing bowl. Later, it is poured in dump tank. Sample
testing is made through lactometer reading and other tests. The fat andSNF content of each
sample of milk is accessed the cow and buffalo’s milk are separately received and sent to the
production section separately through two different stainless steel pipes.
Later, the raw milk is passed through plate chiller of variable capacity where it is cooledup to 4-
5 degrees Celsius. This cooled raw material is further stored in a silo of 30,000 liters capacity.

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MILK PROCESSING U NIT




















Raw chilled milk reception though
insulted tankers
Weighted at mother dairy weigh bridge
Reception dock Platform test & chemical quality
analysis by QC personnel
Filtered
Rechilling through PHE 6-8 deg C
Store & standardized in PM silo 4 to
6deg.c
Pasteurization
1. Balance tank
2. Regeneration 1
3. Filter
4. Regeneration 2
5. Heating & holding
6. Regeneration 2
7. Regeneration 1
8. Chiller
Milk issues
Pre-pack Bulk
Other dairies
Packed & storage in cold
store below 10 deg.c
Glycol chilled 2 to 4 deg.c&
loaded to tankers for BVB &
FRP suppliers
Dispatched to
market

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PURPOSE OF CHILING
This is done to avoid the growth of micro organisms, which are responsible forspoilage
of milk and bitter taste. The milk, which is stored in silos, is pumped through pipeline to the
balance tank, which helps to maintain the steady speed flow of milk in the pasteurization
machine. In, DMU, there are 2 milk pasteurization machine and 1 Creampasteurization machine.
PURPOSE OF PASTEURIZATION
Pasteurization is a process where milk is heated to high temperature and cooled instantly,
to destroy any microorganism. The pasteurized milk will stored in pasteurized milk silos and
then sent to pre-packing section. Package is done in 500ml and stored in coldstorage at 7 degree.
PURCHASE AND STORE DEPARTMENT
PURCHASE DEPARTMENT
Purchase department mainly concerned with the purchase of materials which are required
by the each department and effective storage and maintenance of the same. Normally for
purchasing of goods, Mother Dairy follows Trader method purchased materials are stored in the
stores of Mother Dairy.
Objectives:
Following are the important objectives of purchase department
 To procure fights materials
 In right qualities
 In right quantities
 Form right and reliable sources of supplies
 To produce materials economically i.e., at reasonable price.
 To secure and deliver materials at right place and at right time
 Transparency in the transactions.
Purchase department has to perform certain activities, duties and function in order to achieve the
objects mentioned above.

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Duties and responsibilities:
 To keep records indicating possible materials and their substitutes.
 Maintenance of relevant records of reliable records of reliable sources of supplies,
price materials.
 Making contacts with right sources of supplies
 Analyzing, evaluation of offers /quotations to procure the materials.
 Maintaining all the relevant records of purchase made.
Inventory Management System
In Mother dairy, the store department uses the FIFO method. I.e. First in First Out method of
inventory management.
Purchase Procedure
Mother Dairy’s main raw material is milk. The purchase department has only to pick up just 10%
of other raw material. The purchase procedure is as under:
1. First of all respective department heads find out their need and get it approve by the managing
director.
2. Then they contact the stores department.
3. After this they send an indent to the purchase department.
4. The purchase department then asks for quotation from the suppliers.
5. After the quotations are received will then be selected.
6. The least cost giving suppler will then be selected.
7. Then take the approval and give the authority to the supplier who gets the quotation passed.
8. Then just let the finance department will make the payment the supplier after the delivery of
goods.

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Types of Stores
 Cold Stores
The cold stores are use for storing milk, flavored milk, Dahi etc. and many other products.
 General Store 1
In this general store, the veterinary products, medicines, transportation instrument, buckets,
flavors for milk and Ice-cream are stored here.
 General Store 2
Here plastic of milk bags is store; tins of ghee, milk powder etc. is stored.
Activities of Production Department:
 There are mainly Eight (8) activities done by the Production Department. They are as
follows:
1. Raw Material Receiving Dock
2. Clarification 3. Homogenization
4. Pasteurization
5. Chilling
6. Processed Milk
7. Deep Chilling
8. Dispatch In Insulated Tankers
Mother Dairy has set up a modern plant for the production process. It has established its plant in
a modern high tech style which functions nearly 80% automatically.

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4.1.3 FINANCE DEPARTMENT
Finance department is involved in drivers and challenging assignments.There are three board
areas of financial decision-making,capital budgeting,capital structure, and working capital
management.Every organization requires an accounts/finance department where the circulation
of all essential issues like salary billing,sales,purchase etc, are carried out it acts as a heart of the
organization without whatever may be result of functioning of a unit,the accounting at the same
time,it ensure the results experienced and qualified person identified as purchase officer.
Functions of Finance department
 Preparation of annual budget
 Scrutiny of all payments bill
 Maintain of sales ledgers.
 Salary established ledger-EPR and ESI registers.
 All subsidy books under co-operative societies.
 Income tax and tax deductions at source registers.
 Debtor's ledger
 Cash book
 General ledger.
 Preparation of cost sheet
Audit
There is pre statutory audit it is basically at the end of the year.As mother dairy:Yelahanka is a
cooperative department under the government of Karnataka.The audit is done according to the
rules and regulation of the Karnataka cooperative societies act.Double entry system of book
keeping is followed by the finance department to calculate the depreciation Straight line method
is followed.

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Mother Dairy follows 2 types of auditing
1. PRE-AUDITING system: It is done by finance and account department every year.
2. STATUTORY system: It is done by private charted accountant every year.
Objectives
 To ensure that accounting records of various divisions are properly maintained.
 To ensure that sales realization are properly accounted and remained the marketing
section from time to time over the debtors portion in order to enable them to collect the
dues.
 The account section objective is also to see that regular payments of milk bill due are
made to milk producers on priority.
 To see that payment to the creditors is made within stipulated time.
 Account section has to provide management timely information about the financial
position of the union and guide them as to viability of the proposals that come in the
course of business activity.
 The other objectives of finance section is to keep the management/boar appraised of
monthly trading and P & L figures.
 To include timely submission of financial statements to auditors and ensure smooth audit
is conducted and give audit reports to management.
 To make cost evaluations where ever their cost exceeds the norms

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HIERARCHY OF FINANCE DEPARTMENT





















FINANCE MANAGER
DEPUTY MANAGER
SUPERINTENDENT
ASSISTANTS
ASSISTANT MANAGER
ACCOUNTS ASSSISTANT

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THE DETILES OF EACH FUNCTIONS ARE UNDER
1. CASH
There are two cash counters in the financial section.
1. Collection of scales proceeds counter
This is for cash collection of sales proceeds of milk ad milk products. Cash
collected from various milk distribution roots for sale through agent is collected in cash by root
salesman and is remitted into his cash counter.A receipt is passes for the net amounted collected
from each of the distribution root salesman and this is being recorded in a book collected Root
cash book. This entire amount collected by the end of the day is remitted to bank next day to the
current account of the milk union.
2. Cash Counter
Another cash counter is for handling impressed cash and cheques.Impressed cash means amount
required for meeting various payment such as salaries paid in cash. Travel allowance, festival
advances etc,which are made in cash.Receipts are being issued for collection of cash towards
receipt of all these are recorded in a cash book called petty cash book, both these cash books are
closed at the end of the day and verified by accounts office/assistant manager finance cheques
are also going drawn for payment of bills whenever payment are to be required through
cheques.For receipt of many cheques received from outside officials,general receipt are being
passed in this cash section. All these transactions of receipt and payment are entered into
computer and cash book entry is also being made in the computer.
2. BILLS
Bills are being received from various and usually the purchase section after getting the Material
Receipt Information(MRI)from stores duty certified for quality and quantity sends bills to record
section in the related files and these bills are processed and entries in the control register and
after scrutiny from pre-auditors bills are put up for passing MD through assistant manager
finance after the signature of the MD the cheques are drawn in the name of the parties. File with
entries of cheques No and a copy of the voucher is returned to concerned section. And the

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payment vouchers are accounted in computer.
3. TRANSPORTATION BILLS
Following are the types of Transportation bills
1. Procurement Transportation bile(PTC)
2. Distribution Transportation bills(DTC)
3. Mobile veterinary root bills
4. Cattle feed Transportation bills
5. LN2 Transportation bills(liquid nitrogen)
6. Hire banks Transportation bills
All these above bills are received from different user section once in a fortnight duly
certified for having hired the vehicle for the purpose of milk procurement, distribution mobile
veterinary services, cattle feed Transportation, transportation of milk to other dairies inn hired
Transportation tankers. All these bills are duly scrutinized in account section in different aspects
such as correction of the distance, deduction towards TDS and any other recoveries and/or
passed for payment through cheques. Since these bills Are No's once a fortnight for total amount
of payment made to these contractors AJE(journal entry)is passed the same is accounted in
computers.
4. PAY BILLS
Attendance data are being received from time to time office as per the punch card entries
further the attendance of chilling and center staff and field staff are being received from
concerned section once in a month duly certified by sanctimonies based on these attendance
extracts pay bill of all the employees of the milk union are being prepared through computers
and salary is being distributed partly in cash account counter and partly through Canara Bank
main branch by way of crediting the account of respective employees in the bank.
There are various heads under salary recoveries are made such as employees PF, employee state
insurance scheme(ESI),professional tax, LIC, GSLIOC(group saving linked insurance of

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scheme)pay cheques, pay advance, bank loan and such other deductions under about 45 accounts
heads.
These salary recoveries are being sent to respective department such as regional PF
commissioner, ESI office, professional tax office, LIC of India and different bank where
employees avail loan through cheques. The account section prepares salary deduction statement
for deductions under various heads cited above and these deductions are generated in computer
itself when salary bills are prepared, specimens of salary bills and deduction statement are
enclosed.
1. ACCOUNTS
The functions of account section are
1. To maintain records of day to day transactions, up-to-date
2. Entries in computer
3. Prepare monthly nominal accounts
Prepare annual financial statements such as receipt and pays, trading and P/I, account and
balance sheet and also to produce same to statutory auditory and get it audited.
SOURCES OF FINANCE
The main source of finance is sales realization(retained earnings).Sales are purely on cash 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 arise out of milk and as their perish ability period is little more i.e. for a
period 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.

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4.1.4 MARKETING DEPARTMENT
Marketing department is the business function that identifies customer needs and wants,
determines which target markets the organization can serve the best design appropriate products,
services and programs to serve these markets. However, marketing is much more than just an
isolated business functioning. It is a philosophy that guides the entire organization.
Mother dairy has a very good marketing network. Marketing slogan of KMF is “Fresh and pure”.
Role of marketing manager
 Collecting information for sales forecasting.
 Search for new market area.
 Pricing the products as per the demand.
 Appointing new dealers and distributors.
 Market the product that involves launching, presentation, awareness and advertisement of
the product promotion on certain areas.
 To keep a watch on the action and motives of the competitors.
 To have full and perfect knowledge of marketing conditions and policies.
 To attend grievances, complaints if any regarding the product and service.

Functions of market department:
 The basic function of this department is to interpret the needs of the customer and plan
the production of such products.
 It sells the product to the customers directly and through network of distribution.
 It makes a market research regarding the demand for the product, taste and preference of
the customers.
 It prepares plan regarding production of such product and maintains a good relationship
with production department by providing the information information regarding
production.

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 It also fixes prices for the product with the consultation of the top-level management
considering its price policy, demand policy and government policy.
 It also makes the sufficient offers to promote sales.
 It is concerned with designing the advertisement stake for the product.
 It is concerned with the distribution of the product for the required consumers at required
place and time.
 It checks the daily report by the sales representatives, follow-up the letters and attend to
the queries if any.
 It prepares incentive chart; arrange the salaries and other sales follow-up activities of
representatives.

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HIERARCHY OF MARKETING DEPARTMENT




















MARKETING MANAGER
DEPUTY MANAGER
ASSISTANT MANAGER
FIELD OFFICER
SUPERINTENDENT
MARKETING ASSISTANT
HELPERS

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PACKING AND DISPATCH DEPARTMENT
The products manufactured have very short life and therefore the section heads have to plan for
rapid dispatch to the market before it loses its nutritional value. Considering this the management
has planned to club the packing section with the production department so that the time taken for
the finished product to the packing section and from there to the stored is minimized. Packing
section is equipped with laborers, weighting machines, big iron and still racks to place produce
fill in trays, shopping, cutting machine, refrigerator etc.
ENGINEERING MECHANICAL SECTION
The units which require machinery. Power consumption steam, chill water, hot water etc,
required an engineering department separately to maintain the power supply and avoid
breakdowns of the machinery and other necessary technical assistance required for the
production. This unit required all the above mentioned power and energy for the manufacturer of
the products and therefore has organized a separate department called the “Engineering
department headed by a technical officer.
Sections of engineering department:
 Boiler section
 Electrical section
 Mechanical section
 Refrigeration section

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STORES DEPARTMENT
Storage is an essential of marketing process. This involves the proper arrangement for retaining
the goods in a perfect state till they are need by the consumers and are to be taken to the market
place. Two people handle the stores department. One person is known as office and other is his
assistance who maintains books of receipts and issue of goods from the department. The stores
department maintains a number of books such as stock ledger, stock inventory method.
As soon as the stock arrives, the stores keeper checks the quality and enters the same into their
receipts ledger, where the job of the accounting for stocks carries on until they are sent to the
department which requires this information.
Functions of stores:
 To place or send a requisition of materials to the purchase department on time.
 Receiving the incoming materials and to record the receipts in general ledger and to
carry out the inspection work properly.
 After the inspection work of both quality of materials, are placed properly on the basis
of their nature and to record them in [bin card] rejection materials are sent back to the
suppliers and asking the supplies to send the requirements or required type of quality
materials.
 Proper maintenances of stores records.
 To issue the materials receipts of duty signed or authorized requisition note from the
respective department.
 To protect stores against damage

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MANAGEMENT INFORMATION SYSTEM DEPARTMENT
Online computer transaction system at mother dairy
Presently mother dairy is having a system of all major transaction being carried on through its
online computer system. The major areas covered are.
 All milk distributors to retailers/factories/institutions.
 All incoming milk weightiest, billing and its accounting.
 All financial accounts, book maintenance, employees pay roll, sales transactions.
 Maintaining database of all the above said transactions
The milk production and quality control system:
The weightiest of milk tankers taken on the weight bridge, which is inter forced with the online
system. Quality test fat percentage and SNF percentage area entered in q.c. Menu. The shift wise
receipt issue milk processing register product reports are taken by entering the details in
production menu to arrive to material balance.
Milk marketing and distribution system:
Indenting for milk supply as per the retailers requisition quantity production indent, route sheet
printing, distribution menus, after the supply return entry, cheque entries carried to take the
cheque statement short or excess payment reports sales reports and retailers reports are taken.
Financial accounting system:
The general receipts are entered for cash or cheque receipts with GR print outs, payment
vouchers debt note, advances, bill payment, cheque, bounces are entered. All financial reports
petty cash book, purchase day. R&P, trail balance, journal entries, subsidiary ledgers income tax
from 16TDS certificates etc, monthly annual reports taken.
Integrated material management system:
Material purchases are done by enquiry entry, quotation entry, and comparative statement and
vendor approval for placing the purchase orders. Stores are maintained by entering MRR,issues,
stock ledgers, entry tax reports, issues reports are taken.

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Payroll attendance management:
Employees are swapping their ID cards in attendance card reader for attendance of their presence
in dairy. In and out times are transferred to server with the interface of records to the system.
After entering leaves, OOD the monthly, half yearly, annual statement generated and printed.
Engineering and production planning control:
Electrical, boil, refrigerators, mechanical, pre pack, transport sections data entry of meter
reading, preventative maintenance, rates are entered. Register and logbooks are taken effective
utilizations is not yet made due to programmer errors and users.
Benefits of the MIS system
 Shifts wise receipts and issue statements
 Material balance between any period [daily, weekly, monthly]
 Milk conversion statement, quality reports of films, packing materials etc.
 Milk processing, butter, ghee register

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HIERARCHY OF MIS DEPARTME NT





















DEPUTY MANAGER
ASSISTANT MANAGER
ASSISTANT DIRECTOR
DAIRY SUPERVISOR
TECHNICIANS
GRANDII ADMIN ASSISTANT
HELPERS

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SECURITY DEPARTMENT
Industrial Security:
Security is must for any organization to tackle with problems like theft strikes, conflicts between
workers, etc. mother dairy maintains its own security through permanent employees and contract
labors. It has also employed an ex-service man who looks after the security of the whole
premises.
There are 35 employees who work for this department in three shifts. They have different tasks
to perform right from checking the milk tankers, checking the distribution vehicle, keeping
records for the visitors and keeping an eye on the premises of mother dairy and 4 cameras which
are installed for safe guarding the dairy activity and its premises. If and mischief conducted
while dispatching the materials from the premises the fine is collect in the ratio of 1:10 of the
amount of the materials
MOTHERDAIRY MANTAINS C ERTAIN REGISTERS
Visitor’s register:
The visitors coming in MOTHERDAIRY have to enter their name. purpose of visit whom
they are meeting, time of entering time of going out and signature.
Duty Reporting Register:
It is and internal register of security department which tracks the number of people
reported for duty in a particular shift.
Occurrence register:
This registers only for any critical incident happening in the premises. An incident such as
theft, an accident etc if happens has to be recorded in this register.

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Material Movement Register:
The materials which are taken our from the premises are recorded in outwards register and
the materials coming in are recorded in a separate register. They are duly checked before it goes
out or comes in.
Contract Register:
Here records such as name, address, time of work, etc contained in this register. Besides
these activities counting of contract labors done after and before every shift so that the exact
number ca be sent to administration department for their payment.

HIERARCHY OF SECURITY DEPARTMENT

SECURITY OFFICER



PERMANENT GUARD

PRIVATE SECURITIES




SECURITYHEAD GUARD

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SOWT ANALYSIS








SWOT
STRENGHTS
WEEKNESS
OPPRTUNITIES
THREATS

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SWOT ANALYSIS OF MOTHER DAIRY
STRENGTH:
 Market leader.
 NANDINI is trusted household brand name.
 It has a good infrastructure.
 Its main power is company’s man power.
 Maximum source utilization.
 Construction equipment division measures customer satisfaction by the means of
customer satisfaction index and to measure performance.
 Technology updating in regular intervals.
 Total quality management system is implemented.
 High quality goods and services were produced.
 Good brand image in the market and Wide range of products available in the market.
 Consumers are highly satisfied with KMF products.
WEAKNESS:
 No replacement policy, resulting in safe indenting by agents.
 Lack of specialization in top management.
 Some departments of Mother Dairy are lacking enough authority to take decisions.
 Difficulty in adopting modem technology by following procedures.
 Lack of counseling and absence of interaction between employees Logistics of
procurement.
 Weak distribution network because of bad roads and inadequate transportation facility
make milk procurement problematic.
 Heavy competition from the private vendors
 Evaluation of effectiveness of training given to the staff.

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OPPORTUNITIES:
 At better price than any other milk union’s price obtained in Karnataka.
 Effective advertisements: - by providing the effective advertisements it is possible to the
organization to Increase brand awareness of different products of KMF.
 Expansion of product line in current market. Since KMF is a well-known brand, it has an
opportunity to diversify into other milk products.
 Mother Dairy is recruiting its labor from permanent and contract basis,
 It has opportunity to meet production as per fluctuating demand. Exploring possibilities
to export the products required by the state of the art companies.
 Strengthening of union-management relationship to achieve organizational objectives.
 By minimizing the wastage the production levels can reach its objectives and reduces
cost.
THREATS:
 Competition from private vendors: - in the present situations private milk vendors are
occupying the pride place in the dairy industries.
 Poor microbiological quality of milk. Result of globalization.
 Change in technology. Limited market. Increase in milk procurement.
(When there is a surplus· of milk production in other states)
 Multinational companies entering into milk business for which Government should not
encourage
 As mother dairy is owned by Karnataka government, change in policies of the
government affects the mother dairy.
 Change in technology.

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FINDINGS, SUGGETIONS AND CONCLUSION
6.1 FINDINGS:
 KMF has learnt it hard way and has been continuously striving to compete with
competitors and has been successful.
 KMF is being showing consistent growth prospective.
 It has centralized many functions that help of a better control and coordinate.
 Company continuously strives for achieving total quality management.
 This company assigns market field survey to us it shows the utilization of the available
sources at present or current period of time.
 The facility is maintained well.


6.2 SUGGESTION:
 Very important of all is the marketing department function that is has to do good
advertisement and build brand awareness in the market.
 Job rotation, job enlargement and job enrichment needs to be done frequently which
would motivate an employee to do better.
 As KMF faces a tough competition from the private firms it must formulate. In order to
survive and to be leader KMF needs to come out with new products continuously and
increase its product line.
 The company should improve the promotional activities to create brand awareness and
capture the market.
 The recruitment process has to be modified.
 Recruitment and selection policy should be more transparent.
 Retailer's Sales margin should be increased to motivate them to push the Products

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CONCLUSION:
Indian dairy sector contributes a large chunk in agricultural gross Domestic Product. Milk is one
of the basic needs for the people. Mother Dairy, a service oriented organization as entered
households of Bangalore and other parts of Karnataka with its attractive products and efficient
service. The costumers can be taken in to confidence so that it helps dairy with better insides
even though KMF is facing vary stiff competitions from the competitors like Heritage, Arogya
and swastika,. It has strong brand image and also better distribution network.
This training has given as insight in understanding the various attributes of the products as well
as the other factors which influences the buyer behavior of business markets for effective
formulation of marketing strategies with respect to product, promotion and placement because
the advertisement and sales promotional, strategies are very important for any product to become
popular and push the sales up. During the training period it is found that KMF production and
other strategies are good.

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BIBLIOGRAPHY:
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Kalyani
George W.
Bohlander,
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South-Western
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Navdeep
Financial Management 2014 3
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Ahuja K.K

OrganisationBehaviour

2016 1
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Kalyani
Philip Kotler
Kevin Lane
Keller
Marketing Management 2006 12
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TapomonyDeb Human Resource
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2006 Students Ane’sBooks
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I.M Pandey Financial Management 2009 9
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VikasPublic
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th
Pearson

79. AN ORGANISATIONAL STUDY AT KMF MOTHER DAIRY YALAHANKA, BANGALORE

INDIAN ACADEMY Degree College, Bangalore 560-043 Page 79

Websites:
1. www.motherdairykmf.in
2. www.kmfnandini.coop
3. www.abebooks.com/book