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.,
where as 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 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 tonnes for a population of
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about 4 billion amounts to and 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 tonnes, 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
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 through out 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.
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History of Indian Market Milk Industry:
• Organized milk handling was made in India with the establishment of Military Dairy
• 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
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 worlds 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
tones 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.
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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 Channarayapattna. Milk
is being collected daily in two shifts.
The capacities of dairies and chilling centers are as follows.
Milk Procurement Activities
Place Capacity ltrs/day Capacity utilization % of capacity
ltrs/day * at the end of utilization
month june 2008
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 utilisation is varies day to day because milk procurement is also
varies day to day
In Shettihally near Channarayapatna in Hassan District (under construction)
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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, Belgaum, Shivamoga, Chikkmagalore, 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 Chikkmagalore. 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
• Formation of dairy co-operative societies under the principles of co-operation to
encourage small, marginal farmers and agricultural labourers to take up dairy
• To provide continuous and remunerative makers for the surplus milk in the rural
• 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.
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• 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
• 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 shits, 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.
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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
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
Activities of Hassan Milk Union:
1. Organization of Dairy Co-Operative Societies
As 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 Enrolment
As 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 labourers, 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 Activities
The present average milk procurement from 924 milk societies is around 3,
60,500kgs/day. During the month of June the average procurement /DCS/day is
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390kgs and the average transportation cost per kg of milk procurement is 32 paisa.
The average fat is 4.19% and average SNF is8.51%.
a. Veterinary Facility
Covered 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 Insemination
To improve the breeding facility there are 23 single AI centres and 63 Cluster AI
centres are working in the union area. These centres 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 suppling 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 tones 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 facilities
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Training 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
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. Yashashwini health programme:-
Under this scheme, those who have become members of this scheme well 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 centres 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.
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1.MANAGER 3.MANAGER 5.MANAGER
(P&I) (FINANCE) (ADMINISTRATION)
(DAIRY (MARKETING (MIS)
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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
The head of the selected body is the Managing Director; at present
Mr. V.L REDDY
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.
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There are seven departments in HAMUL viz.
Procurement and input 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
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
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To procure material economically i.e. at right or reasonable price
To receive and deliver material at right place and right guide.
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 societies act 1959, it follows certain rules and regulation.
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
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.
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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 weakly basis to the
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
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 fallows:
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
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is very safe and convey for transport purpose. The colours of the milk packets are Red and
Blue. The colour of the ghee packing is yellow.
The pricing method followed by the firm is very sound and prices of the product are
Particulars Selling price Margin Retail price
Toned milk 1 Ltr 16.00 0.56 15.44
Homogenized 1Ltr 18.00 0.63 17.37
Double toned 250 ml 3.50 0.25 3.25
Curds 500gm 10.00 0.75 9.25
Curds 200gm 5.00 0.40 4.60
Butter milk 200 ml 4.00 0.60 3.40
Some VAT applicable MAMP:
Particulars M.R.P(Rs) Margin VAT(%) Retail price
Ghee 1Ltr 195.00 37.43 12.50 177.27
Ghee 500gm(jar) 99.50 18.70 12.50 90.45
Ghee 15kg 2925.00 448.87 12.50 2850.00
Peda 250 gm 38.00 4.00 4.00 35.36
Mysore pak 250 gm 55.00 7.78 4.00 49.11
Mysore pak 500 gm 105.00 14.86 4.00 93.75
Badam powder 500 gm 100.00 19.19 12.50 90.91
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 news paper (area wise)
• News paper(state wise)
• Hand bills.... etc
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HAMUL supplying milk and milk products to the customers in three districts like Hassan,
Chikkmagalore 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
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,
Chikkmagalore 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 AVAILIBILITY OF NANDINI MILK IN THE MARKET
• ENHANSING EFFECTIVENESS OF CONSUMER AWARENESS PROGRAMME.
• TEAM CONCEPT FOR MARKET DEVELOPMENT.
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• CREATION OF GRIVANCE REDRESSAL CELL.
• CONSTITUTING EFFECTIVE REPLACEMENT/LEAKAGE POLICY.
• CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY
• PROMOTING CHANNEL MEMBERS.
• ELICITING CONSUMER FEED BACK 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 exclusily 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 parlours, 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.
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c) Introduction of Toned Milk (250Ml)Sachet in the Market instead of
D.T.M during July-08
2. ENHANCING EFFECTIVENESS OF CONSUMER AWARENESS
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 programmes 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
This team will conduct the following activities.
1. Visit the market along with marketing staff for market development and to increase
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 persons name to be published in leading
local daily News papers and circulated to all the agents’ day counters.
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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 programmes
- 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.
System operator 1 System operator 2
PRODUCTION DEPARTMENT :
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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.
START - TANKERS
Receive Raw Milk in Cans
Chilled Receive raw milk in tankers after weighing in
Weigh Bridge. Record the weigh of milk
Check for Can Seal
Pour milk to the weighing bowl Check for
Sensory LAB & record the weight of milk. Tanker Seal
Evaluation TES Collect sample for testing.
LAB FAT/SNF/ LAB Sampling
Curd/ Adult TES ACIDITY TES
Send Milk for Fat recovery after
weighing and recording
Filter and dump the Milk in
Pump the Milk through Chiller
maintain the Milk temp. at <10
Store the Raw Chilled Milk in
insulated storage Tank RM silo.
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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 aluminium, 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.
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
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.
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The main product of HAMUL is milk that is processed in number of different
categories based on their fat division are
Sl.No. Products Qty. of Fat & SNF Quantity
1. Toned Milk 3.5% & 8.5% 500Ml- 1ltr
2 Standardized Homogenized 500Ml- 1ltr
Milk 4.5% & 8.5%
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.
Karnataka's most favourite milk. Nandini Toned Fresh
and Pure milk containing 3.0% fat and 8.5% SNF.
Available in 500ml and 1ltr packs.
Available in 500ml and 1ltr packs
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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 savouries.
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.
It is thick and delicious. It is available in 200 grams, 500 grams and 1000 grams
The price list of Curd: At the end of March, 30, 2008
Sl No Particular Packing Quantity Price in Rs
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1 Nandini Curd Sachet 200 grams 85 -00
2 Nandini Curd Sachet 500 grams 10 -00
3 Nandini Curd Bulk Can 1000 grams 19 -00
Nandini Curd made from pure milk. It's thick and
delicious. Giving you all the goodness of homemade
Available in 200gms and 500gms sachet.
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 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
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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
Particular Packing Quantity Price in Rs
1 Nandini Ghee Sachet 50 ml 0012 - 50
2 Nandini Ghee Sachet 100 ml 0021 - 50
3 Nandini Ghee Sachet 200 ml 0041 - 00
4 Nandini Ghee Sachet 500 ml 0099 - 50
5 Nandini Ghee Sachet 1000ml 0195 - 00
6 Nandini Ghee Bulk Tin 15 kgs 2925 - 00
7 Nandini Ghee Jar 500 ml 0085 - 00
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
Available in 200ml, 500ml, 1000ml sachets,
5lts tins and 15.0 kg tins.
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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
Particular Packing Quantity Price in Rs
1 Nandini Peda 10 grams Box 100 grams 16 -00
2 Nandini Peda 25 grams Box 250 grams 38 -00
3 Nandini Peda (single) Single 25 grams 03 -80
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.
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Chart showing the channels of distribution for milk and milk products:
Agents Dairy K.M.F Sales Depots
Milk parlor Institutions Whole sale dealers
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 with out 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.
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COMPANY PROFILE WITH REFERENCE TO MCKENSEY 7-S
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 formulated programs for improvement.
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The functional structure of HCMPSUL is appropriate for an organization with several
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.
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
• 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 on mental environment for employees.
Procurement and Input Department
The procurement and input department is concerned with collection of milk from various
• To follow up daily procure schedule as per the plan.
• To collect quality of milk by checking fat content.
• To maintain good relationship with DCS.
• To send procured milk to production unit.
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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 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
• To plan marketing programmes.
• To analyze marketing opportunities.
• To develop marketing strategies.
• To connect the consumer with the products.
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 that
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 produces to cater efficiently the variety milk
needs of the urban and semi urban consumers of the jurisdiction.
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Different prices are charged to different types of milk on the basis of FAT and SNF [Solid
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
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
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
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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
Designation Qualification Experience
M.D. B.Sc (Agri), MSc (Dairying) 19
Finance B.Com., M.Com 20
MIS M.Sc, Diploma in Computer Science 15
Marketing BBM, M.Com., PGDM in Marketing 10
Officers B.Com, BBM, BA 8-12
Technical Workers ITI 4-6
Laboratory M.Sc., in Bio Science 2-3
Workers Pre university, B.A., Secondary School 3-2
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.
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The methods of on-the-job training, which are adopted by Hassan milk union, are as
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
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 then spending time in performing
Under this method, actual work condition is stimulated in a classroom. Hassan milk
union sends its employees to National Dairy Development Board (NDDB), Mehsana, 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.
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.
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.
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This type of training is giving by Ramakrishna Institute of Morale (RIM) and spiritual
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
• 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.
Staff refers to the organizations human resources. Management is concerned with the
accomplishment of objectives by utilizing physical and financial resources through the efforts
Duties and responsibilities of technical officers [quality management] in HCMPSUL
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• 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/
• 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, depots, day counter and
2. To take necessary actions to appoint retailers/DS/MP in the new extension.
3. To adopt necessary extension programmes for consumer awareness.
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4. To arrange for consumers meet/fairs/exhibitions and to take participation in
such programmes to improve nandini milk sales.
5. To collect information about private competitors milk sales and to take necessary
action to curtail the private dairy milk sales.
6. To arrange for the retailers meeting at least once in 6 months and to discuss
about the problem.
7. To inspect the milk parlors regularly and to keep watch on sale of other
8. If the parlor contractors are found to sell products other than Nandini products,
action should be taken.
9. To keep close watch on the milk distribution vehicles movement of routes and to
check that the milk and milk products reach the retailers with in the described
10. To conduct distance survey of milk distribution route and to certify them
11. To take necessary action to make recoveries if any due from the retailers.
12. To collect the information pertaining to the choultaries, hostels, public
institutions, sweet stalls, Bakeries, Ice cream parlors, hotels, and conduct
necessary extension programme to increase the sales.
7. SHARED VALUE:
Shared values are what engender trust values are the identity by which a company is
kwon throughout its business areas. These values must be explicitly stated as both corporate
objectives and individual values. These are the company level beliefs, mindsets and
assumptions that shape how an organization behaves.
The shared values of HCMPSUL are:
• Providing quality milk to urban consumers.
• To build village level institutions in co-operative sectors to manage the dairy
• To ensure provision of milk production inputs, processing facilities and
dissemination of know how.
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• To facilitate rural development by providing opportunities for self-employment
at village level, presenting migration to urban areas, introducing cash economy
and opportunity for steady income.
SWOT ANALYSIS OF HCMPSUL
There is a huge demand for Nandini milk and milk products in the market. Milk is very
much needed for the children and the people to get good calories, vitamin and nutritional.
There is increased population in India; hence there is increased demand for milk products.
Availability of Milk
Union can easily get required milk with less cost from the rural area according to the
need. Most of the farmers in Hassan district are having at least 2 or 3 cows or buffaloes in
their home. Hence there is a good availability of milk for HCMPSUL.
Nandini milk, Nandini ghee, Nandini curd etc Nandini products are well branded in the
market because of their quality.
There is well experienced, professionally trained technical employees are working in the
company with minimum experience of 15 years. It helps organization to maintain the quality
of the product.
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Hassan milk union is located in industrial estate beside NH-48 where people can easily found
the company. It reduces the cost of transportation and leads to publicity of company
Good quality control
On time delivery
Easy access to loans from National Dairy Development Board
Adaptability to changing technology
Inadequate Transportation,Bad condition of roads and inadequate
transportation facilities makes milk procurement problematic.
No Cattle Form
HCMPSUL has no cattle form in its own, it becomes one of the major weakness of the
It focused more only on rural segment and very less concentration on urban area.
New employee has less social security eg: accommodation is not provided to new employees
where in it restricts their stay for a long period.
No credit business
There is demand for Nandini Products in other states vise Kerala, Goa. So it can export its
product to those states along with Tamilnadu and Andrapradesh.
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New Product Innovation
It can innovate new products like Khoa, Ice cream, Panneer and dairy Sweets in the same
It provides more employment opportunities to the people. Currently there are 500 employees
are working in the organization.
Young, enthusiastic employees put their best efforts, which results in the growth of
The brand, image of the firm helps it to enter new areas quickly.
There is a price fluctuation in the market, it may leads to decrease the demand and there by
reduction in profit.
Competitors are coming with similar product, this is the main threat posed by the external
Many private firms have entered into
Manufacturing of dairy products, there
Is a tough competition for Nandini
Like AROKYA, JERSY, JENUKAL and many more.
SWOT Analysis of HCMPSUL
• Huge demand for milk products. • Inadequate Transportation
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• Availability of Raw milk • No Cattle Form
• Nandini Brand • Focus only on Rural Segment
• Man Power • New employees have less social
• Location security.
• To export its products to other states. • Market uncertainty
• New product innovation • Competition
HIGHLIGHTS OF THE COMPANY
GROWTH IN MILK REGISTERED SOCIETIES
Years Registered societies
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MANUFACTURING AND TRADING ACCOUNT FOR THE PERIOD
OF FROM 01.04.2006 TO 31.03.2007
PARTICULAR 31-3-2007 31-3-2006
Opening stock 7406110.12 12597169.78
Purchase of raw material 1006054769.13 843563064.77
Proc transportation 75105886.33 91186368.47
Processing & 62323083.34 70877371.99
Salary & other benefits 80045206.15 56104373.15
Gross profit 67970324.20 61320005.85
TOTAL 1298905379.27 1135648352.00
Sale of milk products, 1283640880.40 908316775.93
cattle feed & others
Inter units transfer 7119628.8 219925465.95
Closing stock 8144870.03 7406110.12
TOTAL 1298905379.23 1135648352.00
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HASSAN COOPERATIVE PRODUCT SOCITIES UNION LTD. PROFIT
& LOSS A/C ON 31.3.2007
EXPENSES 31.3.2007 31.3.2006
Salary and other benefits 20011301.54 14026093.29
Administration exp.. 10633245.82 4515705.08
Rent, rates & taxes 1072489.00 865123.75
Selling & distribution 18975868.95 27452306.84
Postage & insurance 8107154.59 6714679.10
Investment & bank 1084687.84 885542.15
Vehicles, repairs & 3977121.21 3893831.57
Depreciation 4077504.63 4691989.36
Tax& provision 7564329.00 3303352.00
Net profit transferred to 6139523.35 6154677.20
TOTAL 82643225.93 7250330034
INCOME 31.3.2007 31.3.2006
Gross profit 67970324.20 61320005.85
Other Income 10213382.40 9828715.04
Interest on Loan and 3459519.20 1554579.45
TOTAL 816432219.80 72703300.34
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HASSAN COOPERATIVE MILK PRODUCTION SOCITIES UNION LTD
BALANCE SHHET AS ON 31 MARCH 2007
CAPITAL AND 31..3.2007 31.3.2006
Paid up share capital 37001000.00 30359000.00
Share suspense 439931.33 245269.93
Depreciation and other 104348414.21 62467770.82
Profit and loss account 6139523.35 10591092.50
Loans 24783663.00 6081719.00
Grands and subsidies 1341290.78 30863943.03
Current Liabilities 82332825.56 85158052.07
Provisions 11970012.54 7443106.94
Bank over draft 0.00 171397.93
TOTAL 268356660.77 233,381,352.22
ASSETS 31.3.2007 31.3.2006
Cash in hand 2105813.25 542434.15
Cash at bank 13674831.73 6948863.46
Investment 47729846.33 34276761.86
Fixed Assets 118494561.14 115051216.14
Current Assets 56038605.07 47407208.05
Loans, Advances and 44538.60 254.06
Sundry Debtors 10473705.39 10679810.55
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Audit Objection 3734352.67 3813655.68
Stock on Hand 16060406.59 14661147.73
TOTAL 268356660.77 233381352.22
RATIOS YEAR-2007 YEAR-2006
1. GROSS PROFIT RATIO: 5.29% 6.75%
2. NET PROFIT RATIO: 0.48% 0.68%
3. TOTAL ASSET TURNOVER 4.85 Times 3.96 Times
4. CURRENT RATIO 1.77 1.35
5. DEBT-EQUITY RATIO 0.66: 1 0.20: 1
1. GROSS PROFIT RATIO: Gross profit has been reduced when compared to
2. NET PROFIT RATIO : Net profit ratio has been reduced when compared
to previous year.
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3. TOTAL ASSET TURN OVER RATIO : From this ratio we come to know
that assets has been efficiently in the year 2007 than in year 2006.
4. CURRENT RATIO : Current ratio increases in the year 2007 when compared
to previous year which shows company is in the better position to pay the
5. DEBT- EQUITY RATIO : As debt-equity ratio increases it shows that
company went to more debts for raising funds and investment liabilities have
HCMPSUL has got to 4 awards
Energy Conservation Award
Received on 14th Dec 2004 from Dr. Manmohan Singh, Prime Minister of India.
Energy Conservation Award
Received on 14th Dec 2005 from Dr. A.P.J. Abdul Kalam, President of India.
Energy Conservation Award
Received second prize in the year 2006
Energy Conservation Award
Received third prize in the year 2007
FUTURE GROWTH AND PROSPECTS
• Envisaged to establish total of 900 DCS by the end of 2010.
• Planned to establish artificial Insemination centers. [AI]
Single AI centers 40
Cluster AI centers 80
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For this they are expected expenses of Rs 16800 for single AI centers, and Rs 201600
for cluster centers
• The expected maize seed productions are 90 metric ton.
• Cowpea production 1.5 metric tons, 2500000 of route slips.
• The procurement is expected to increase to 34450 kegs’. Per day.
• The local sales are expected to 108610 LPD and bulk sales are 41410 LPD.
• Cattle food sales will also be increased to 96 metric ton.
• In addition to strengthening of market, network quality assurance programme and
milk enhancement activities will be underta
It is a very good opportunity to correct or evaluate our self how capable we are to adopt
new changes or interested to learn the things in real or actual working conditions. When we
enter the organization the atmosphere itself teaches what we have to do and what are all the
duties and responsibilities.
In HAMUL, i was thought how things works in an organization , how the decision –
making is done and on what basis is done. I made a survey on customer satisfaction on
HAMUL products and identified the needs and wants of customers towards HAMUL
In HAMUL the co-ordination between the employees will create a unity among
employers which is very helpful in decision making and building a good future to the
organization & carry out the business in a right way.
Uniformity which is very essential elements that management should maintain
among their employees & outlook of an employee will also create a impression on the minds
of other about their taste, preference, values & principles.
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Punctual and honesty are the other important thing that I learnt in the organization.
I was thought how to handle the situation when there is trouble in the business operations and
how to overcome from it .
Finally I had a practical experience of real world organization and how things works in the
The corporate exposure and learning gives a very good exposure in terms of
understanding the company in detail knowing its activities and the specific roles played by
each functional department.
The reason to choose HAMUL is that of ever-growing demand, less competition and
good quality of products.
By this study I pointed out that:
The villages with Dairy Co-operative Societies are much better off than those
The families with dairy cattle are economically better than those without dairy
Women who had no control on the household income have better control in
terms of Milk Money
A single commodity “MILK” has acted as a catalyst in the change in the
Socio-Economic impact of the rural economy.
There is a positive impact on those at the lower end of the economic ladder
both in terms of landholding.
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Finally I’ am very happy to say about HASSAN Milk Union Limited, they
are succeed in the field of milk products market. Financial Position, company
inventory, cash is better. So we have to conclude that HAMUL is financially growing
and profitable industry.
Finally I conclude about HAMUL Company, coming years it has reaching
their Goals, and Targets.
ADO : Administrative Officer
ADM : Administration
AH : Animal Health
AI : Artificial Insemination
AM : Assistant Manager
CAPA : Corrective Action & Preventive Action
CC : Chilling Center
DCS : Dairy Co-operative Societies
DM : Deputy Manager
F&A : Finance and Accounts
F&F : Feed & Fodder
HAMUL: Hassan Milk Union Limited
KDDC : Karnataka Dairy Development Corporation
MAMP : Milk and Milk Production
Man : Manager
M.D : Managing Director
Mkt : Marketing
NDDB : National Dairy Development Boar
P&I : Procurement and Input
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P&P : Produce and Processing
PROD : Production
PUR : Purchase
Q.C : Quality Control
SNF : Solid Non-Fat
TO : Technical Officer
HACCP: Hazard Analysis Critical Control Point
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Alex Miller - Strategic Management
Philips kotler, Gary Armstrong - Principal of Marketing
Rustoms, Davar - Modern Marketing Management
Universal Book stall
New 7th Edition
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