An Organisational study at TUMUL, Tumkur, Karnataka

TUMKUR COOPERATIVE MILK PRODUCERS SOCIETIES UNION LIMITED
CANARA BANK SCHOOL OF MANAGEMENT STUDIES Page 1
1. INTRODUCTION
Human behavior in organization is determined partly by the requirements of the
formal organization and partly by the personal systems of the individuals forming the
organization. The behavior that emerges from this interaction defines the field of the
organizational behavior.
In the production department when we entered in the beginning the manager told
his assistant to explain the process. Then she had explained about how the milk is
procured and weighed in the machines. Pasteurizing and standardization of the milk was
shown. While explaining she was really calm and explaining each point and also was
answering to our questions. After this we were called to production office where the
production manager asked whether we understood the process or not. He was actually
curious about speaking with us in English. Then again he also explained about the
process and then gave much useful information. After listening to this I understood how
well they know each and every factor which affects the production and quality.
In the quality department how the tests are conducted. Both the laboratories were
hygienic and technological. When I saw the lab technicians were doing the Lactose and
Gerber tests for finding out the degree of the milk and contamination in it, came to know
these tests were not only limited to schools or colleges to teach students. But were really
used here for the safety of its consumers and how well it was utilized in milk industries
like this.
In finance department got the opportunity to see the functioning of the clerks,
officers and manager. They all were coordinating with each other in the formal manner. If
they had doubt about how to pass about new entries especially new comers, then they
would ask for the help from their seniors. Much job pressure would be on them at the
financial year ending. Because they would be very busy in the preparation of the
financial statements.
Learnt why journals and ledgers are so important because these are the base of
what kind of transaction it was. These are the sources and act as history where they can
check for reference of any entry.
HR manager within his busy schedule made some time for us to explain the
recruitment policies of employees, training to them and job promotion on seniority basis.
In the HRM subject we had studied that there were recruitment policies, job training
techniques and promotion policies. After meeting him we came to know that the MD and
HR manager (himself) would select the suitable candidates for the Dairy after going
through the resumes and then personal interview for the candidates. Promotions are
generally given on seniority basis. Because seniors would have much more thorough

knowledge about how the functions affect other things and dairy it‟s relation with KMF.
HR allowance and conveyance allowance are given to the employees because it‟s situated
11 kms away from Tumkur city. So this helped me to understand why conveyance
allowance should be given to employees. It will reduce the burden on the employees and
they would come to work freely.
There is also the availability of the canteen. Here all the employees including few
managers would go to take lunch. Here there is no discrimination and the quality of the
food is also good. Students like us can also visit the canteen and take food. There is no
bifurcation among anyone. Same south Indian food is given to all at very low price of
Rs.12. Here few informal talks go on. Employees find some time to talk with their
collegues here. Their family matters or some other news like politics and films. So this is
the time and place where they can hangout for some time and feel they are with the their
best ones.
For welfare and positive state of employees a temple is being constructed within
the plant. After talking with the employees it‟s known that they are happy with it. In the
future they can just visit the temple and pray there. It creates some kind of attachment of
the employees with the organization.
After watching all the departments and plant layout which is divided into
„administration‟ (union office) and the „Dairy‟ I learned the things like how juniors
behave with seniors, how the one function would affect another like if the procurement is
less then that day the production will be less and the products which would reach to 17
milk parlors under it would be quite few. Work pressure is faced by the employees
because many times we were asked to come later so that they can make some time to
explain us about their department,
Finally I could say that it was a great experience taking over an internship
program in this organization which taught me about organizational culture. We can use
this gained knowledge in classroom. When some subjects are being explained in the
classroom then the experience of watching the functions here would help us to relate and
understand the subject in a better way. Totally this was helpful to enhance our skills,
knowledge and experience.

2. INDUSTRY PROFILE
2.1 An overview of dairy industry in India
White Revolution in India
The first organized attempt at providing safe milk to customers was made by the
military dairy farms, with the objective of supplying milk to the British troops in India.
The next attempt at the organized dairying in the Bombay city by the British Govt. to
improve the city milk supply in fact Mr. R.A Pepparall, the secretary of the milk
marketing board of England, in a meeting with a press in 1944, stated that the milk being
sold all by the private traders in Bombay had a bacteriological count higher than the
sewage of London! This necessitated the Government‟s intervention in the year 1945,
which led to the establishment of the Bombay Milk scheme and a private firm owned by
Mr. Polson, located at Anand. 400 kms north of Bombay, to supply milk to the scheme.
The opening up of the attractive market of Bombay to the milk producers of kaira
district, provided the stimulus to increase their production shortly after India became
independent, the Government of Bombay realized that the prevailing system of milk
contractors, trades and the private Palson Kairy were exploiting the farmers of kaira
district. Cooperative milk union(popularly known as AMU) starting with a modest
collection of 250 liter of milk per day in 1948, and 2 village milk producer societies,
AMUL has grown to a size when it today hans some 850000 liters and more of milk a
day in the peak season. The Kair‟s cooperative has a membership of some 3600000
farmers and pay farmers members nearly Rs. 100 crores for the milk supplies by them,
the cooperative society own dairy which process for the milk and marketers dairy
products in competition with private industry under the brand name “AMUL” the leading
national brand name in dairy products.
The role of the state dairy federation, the Indian dairy cooperation (IDCO and the
National Dairy Development Board(NDDB):
Under operation flood-1, the responsibility for the planning and implementation
of each states program for dairy development is that of the state level cooperative dairy
federation. All the district cooperative milk producers unions are to become members of
these federations and receive their assistance under the program through these
federations.
The funds for the implementation of operation flood-1 project were generated by
the sale of 127517 tons of skim milk power and 39696 tons of butter oil provided by the
world food program. A total of Rs 116.4 crores was generated for the implementation of
the program. The IDC was specially setup by there sale for the implementation of the
project.

Fund for the implementation of operation food are being party generated by the
European Economic Community (EEC). The project is also to receive World Bank
assistance of $150 millions. Part of the project is to come from reflows of loans made
under the operation flood-1 and the interest there on. The remaining funds for the project
are to be generated by sale of a further fifth of 10500 tons of milk powder and 35000 tons
of butter oil that EEC is likely to provide.
The state dairy federations are the implementing agencies for each state dairy
development program under operation flood-1. The federation puts up a perspective plan
for IDC under the program for dairy plants. Cattle feed plants, milk marketing
infrastructure on 70% loan 30% grant basis funds required for the organization of the
rural milk producer‟s cooperative are provided on a 100% grant basis, the IDC also lays
great emphasis on the training of the personnel required for the implementation of the
program rests with the state dairy federation, the NDDB provides services for planning
the project and setting up of dairy and cattle feed plants on turn-key/consultancy basis.
The NDDB has been deputing searched teams for organizing milk producers‟
cooperatives. It has to for the arranged visit of some 15750 farmers, from all over the
country to Anand and training some 5000 professionals for the implementation of the
program, the IDC has total strength of 250, and NDDB employees some 1250 persons of
whom 700 are professionals while the IDC is a Government of India company, the
NDDB is a registered society. NDDB apart from providing services for the
implementation of operation flood, also provides the applied research and development
support to the projects.
2.2 Dairy Industry in Karnataka
In June 1974, an integrated project was launched in Karnataka to restructure and
reconcile the dairy industry on the cooperative principal and lay foundation for the new
direction in dairy development, work on the every first world bank aided dairy
development project was initiated in 1975.
Initially the project converted 8 southern districts of Karnataka and Karnataka
dairy development corporation was set up to implement the project. The multilevel
activities were setup with dairy cooperative societies at gross root levels, milk union at
the middle level as an apex body, vested with responsibility of implementing Rs.51
crores project ended and the dairy development was continues in second phase from
April 1984, KMF come into existence(Karnataka Milk Federation)
In may 1984 as a successor to KDDC, after the closure of operation flood-11
dairy development activities continued under operation flood-11

2.3 Historical Background of the Organisation
(TCMPSUL)
In Karnataka on June 4th
1975 four milk unions were started in Bangalore,
Mysore, Tumkur and Hassan. In Tumkur it was named as „Tumkur Milk‟. Then
Karnataka dairy development cooperation (KDDC) renamed as „Karnataka Milk
Federation” and dairy into “Tumkur cooperation milk producer‟s societies union
Limited” (TCMPSUL)
Objectives:
Karnataka milk federation is a cooperative apex body in the state of Karnataka for
representing dairy‟s farmer‟s organization and also implementing dairy farmer‟s
organization and also implementing dairy development activities to achieve.
The following objects:
1) Providing assured and remunerative market for the entire milk producers by the farmer
members.
2) Providing hygienic milk to urban consumers
3) To build village level institutions I cooperative sector to manage the dairy activities.
4) To ensure provision of milk production inputs processing facilities for self-employment
at village level. Preventing migration to urban areas introducing cash economy and
opportunity for steady income
The philosophy of dairy development is to eliminate middlemen and organizes
institutions to be owned and managed by the milk producers by themselves, employing
professional. Achieve economies of scale to ensure maximum return to the milk
producers, at the same time providing wholesome milk at lowest possible price to urban
consumers ultimately the complex network of cooperative organization should build a
bridge million of consumers on the other side and achieve a socioeconomic revolution in
the hinterland of the state.

3. COMPANY PROFILE
TUMKUR MILK UNION IS A CO-OPERATIVE INSTITUTION which is also
having motive of social service where it was registered on 30th
March 1977 at TUMKUR
to initiate the dairy development activities in the district and to provide facilities to
process milk and milk products and also their marketing at Malla Sandra , which is
11kms away from Tumkur urban area. It is situated in the rural area, which is outside the
jurisdiction local authority such as municipal and corporation.
Objectives of the union
1. Providing assurance and remunerative market for milk produced by the farmer members.
2. Provide hygienic and quality milk to urban consumers.
3. To build village level institution in co-operative sectors to manage the dairy development
activities
4. To ensure provision of milk production inputs, processing facilities and dissemination of
know how
5. To provide competitive prices to all the milk produced by the farmers by members of the
union in order to improve the standard of living
6. To provide appropriate medical facilities to all the cattle in order to maintain the health
condition.
PRINCIPLES:
The formal principle of the TUMKUR MILK UNION is bound to get nationwide
best place in milk production in order to achieve the same the union follows the under
listed principals-
1. To help its member association financially and socially and to improve their work
towards making a profit business.
2. To adopt modern technology.
3. To provide the best service to the customers and the milk producers through services and
dedication of all employees

Mission
Socio-economic development of producers by making dairy industry profitable,
using advanced technology and also through dedication of workmanship of employees
and good services to consumers in order to gain top position in the dairy industry
Values
The following are the values bound by TUMUL-
1. Honesty
2. sincerity
3. discipline
4. quality
5. faith
6. impartiality
7. cost consciousness and transparency
Quality policy
TUMKUR MILK UNION will procure pure milk from its member societies and
scientifically process in its endeavor to supply fresh pure and safe milk and its derivatives
of customer‟s satisfaction at competitive price.
TUMKUR MILK UNION will strive to continually improve its performance
through all stake holders‟ participation

3.1 Milestones:
Sl.
No.
Year Milestones
1 1975 Spearhead team commenced its work
2 1976 First milk route organization
3 1976 Union registration
4 1977 Formation of Managing Committee
5 1977 Sanction of 21 Acre Kothanahally Fodder farm
6 1977 Sanction of 70 Acre land for Dairy construction.
7 1979 Establishment of Diagnostic laboratory
8 1981 Commissioning of Tumkur Dairy
9 1984 Commissioning of Yediyur Chilling centre
10 1986 Establishment of union administrative office
11 1986 Commissioning of Sira Chilling centre
12 1987 Handing over of dairy administration to Union
13 1990 Commissioning of Kibbanahalli Chilling centre

14 1997 Commissioning of STEP-women societies
15 1999 Commissioning of Madhugiri Chilling centre
16 2004 Bulk milk coolers and Electronic weighing machines
17 2005
Dairy processing capacity increased from 60000 ltrs
to 1 lakh ltrs
18 2006 Certification of ISO and HACCP
19
2007 Grade 'A' certification from department of audit for
the year 2006-07
20 2008
Online RMRD computerization of milk
procurement truck sheet
21 2009
Implimentation of Rs 2 incentive by GOK to milk
producers
22 2010 Installation of CCTV
23 2010
1. Quality Incentive of 10 paise per Kg of milk to
Society staff.
2. 10 paise incentive to society staff for
implementing GOK schemes.

3.2 GENERAL INFORMATION:
SL
NO
PARTICULARS
1 Functioning area of operation Tumkur
2 Total taluks 10
3
Total villages
2977
4
No of villages under the administration of
milk union
1814
5
Functional district co operative societies
899
6
No. of chilling center
4
7 Capacity of chilling center
Tumkur main diary
Yediyur
Kibbana halli
Sira
Madhugiri
100000 lit
20000 lit
30000 lit
20000 lit
20000 lit
8 Rotues for procurement of milk 84
9 Distribution ways 44
10 Regd. Nindini milk seller 431
11 Nindini milk parlors 17

4. PRODUCT PROFILE
4.1MILK
A) Toned Milk
Nandini Toned Milk is the Karnataka‟s most favorite Milk. Fresh and pure milk
containing 3.1% fat and 8.5% SNF.
Available in 500 ml & 1 liter packs.
Maximum Retail Price Rs, 10.50 and Rs 21.00 respectively
B) Homogenized Toned Milk
Nandini Homogenized Toned Milk is pure Milk containing 3.1% Fat & 8.5% SNF. This
is Homogenized and pasteurized. It gives you more cups of tea or coffee and is easily
digestible.
Available in 500 ml & 1 liter packs since Feb 2007.
Maximum Retail Price Rs 11.00 and Rs 22.00 respectively.

C) Double Toned Milk
Nandini Double Toned Milk containing 1.6% Fat & 9.0% SNF.
Available in 250 ml packs to the consumers since June 2003.
Maximum Retail Price Rs 5.00
D) Homogenized Cow Milk
Nandini Homogenized Cow Milk containing 3.6% Fat & 8.5% SNF.
Available in 250 ml & 500ml packs from June 2007.
Maximum Retail Price Rs 6.50 & Rs 12.00 Respectively

E) Shubam Milk
Nandini Shubam Milk containing 4.5% Fat & 8.5% SNF released to the market from
May 2011.
Available in 500 ml & 1 liter packs.
Maximum Retail Price Rs 13.00 & Rs 26.00 Respectively.

PROCEDURE IN A CHILLING CENTER
Transportation
Collecting and
grading milk DCS
Chilling center dock
Receiving, grinding and weighing
and testing (quality control)
Diary for processing
Transportation
Storage
Testing
Chilling

MILK PASTEURISATION-FLOW CHART
Raw Chilled Milk Pasteurized Chilled Milk-Silo
Float Balance Tank
Pump Pasteurizer Chilling Section
Pasteurizer Re-generation Section-1
Cream Separator
Pasteurizer Re-generation Section-2
Homogenizer
Water
Mixing Battery/PHE
Steam
Scalding
Water
through
Pump
Pasteurizer Heating Section
Holding Coil
F
D
V

4.2 MILK PRODUCTS
A) Curd
Nandini Curd made from pure milk. It‟s thick and delicious giving you all the goodness
of homemade curds.
Available in 200grams and 500 grams packs.
Product Description of curd:
1. Product Name : Curd
2. How it is to be used : Direct consumption with food & making butter
milk & curd
3. Packaging : Food grade preprinted Polythene film
packaging (200g, 500g & bulk cans)
4. Shelf life : 48 hours from the date of Package when
stored at 4 degree or less
5. Where it will be sold : At nandini retail stores & other marketing
outlets
6. Labeling instructions : Within 2 days from the Date of packing when
Stored at 4 degree or less
7. Is special distribution control needed : Preferably through Insulated vans.

Intended use
1. What is normal use of the product? : Direct consumption along with food
and also to prepare products like lassi,
butter milk etc.
2. Who will consume the food? : Everybody.
3. Is the food intended for high risk : No
population?
4. Is the food intended for retail or : Both
food service?
5. Is the food required to be transported : Ambient
under ambient, insulted or
Refrigerated conditions
6. Is the food held refrigerated/ frozen/ : Requires refrigeration.
Hot before consumption.

Curd Production:
1.
Receipt of pasteurized toned milk
In curd vet
2.
Heating to 32 to 35 deg celcius
3.
Addition of starter culture
4.
Pumping to balance tank
6.
Packing
5.
Receipt and Feeding of film
7.
Pilling in crates
9.
Transferring to cold store
8.
Incubation
10.
Storage
11.
Dispatch

B) Butter Milk
Nandini spiced Buttermilk is a refreshing health drink. It is made from quality
curds and is blended with fresh green chillies, green coriander leaves and fresh ginger.
Nandini spiced Buttermilk promotes health and easy digestion.
It is available in 200 ml packs since June 2002 and is priced at most competitive
rates, so that it is affordable to all sections of people.
Maximum Retail Price Rs 6.00
Product Description of butter milk
1. Product Name : Masala Butter milk
2. How it is to be used : For General drinking as whitener for coffee & tea and to
prepare flavored milk to make dahi, yoghurt & butter milk.
3. Packaging : Packed in multilayer pigmented LDPF preprinted film of
Food Grade in 250ml, 500ml & 1000m Packs and bulk in
SS cans and tankers.
4. Shelf Life : 24 hours from the date of packing at 4 degree or less.
5. Where it will be sold : Retail outlets, Food service Establishments bulk sales
6. Labeling Instructions : Best before within one day from date of packing when
stored under refrigerated condition at 4 degree or less
7. Is special distribution : Needs to be distributed in cold chain network
control needed
8. Product Specification : As per PFA.

Intended Use
1. What is normal use of the product? : For general drinking, as whitener for coffee,
tea and flavored milk, to make dahi, yoghurt
and buttermilk etc.
2. Who will consume the food? : People of all ages
3. Is the food intended for high risk : No
population?
4. Is the intended for retail or food : Both
service?
5. Is the food required to be transported : Yes, Preferably transported under insulted
under ambient, insulted or refrigerated condition.
refrigerated condition.
6. Is the food held refrigerated / frozen / : Hot or cold as preferred by the user.
Hot before consumption

Masala Butter milk Production:
1.
Collection of curd in cans
5.
Addition of salt
6.
Receipt of raw
masala item
7.
Clearing
3.
Collection of
pasteurized
chilled water in
cans
4.
Addition to mixing
vessel
2.
Mixing tee vessel
using plungees
8.
Grinding of masala
items
10.
Filtration
9.
Adding the masala
Item in mixing vessel
11.
Transferring to
balance tank
12.
Receipt and feeding
of film
13.
Packing
14.
Pilling into crates
15.
Transferring to cold
store
16.
Storage
17.
Dispatch

C) Ghee
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.
Available in 200 ml, 500 ml, 1000ml packs & 15 kg tins.
Maximum Retail Price Rs 56.00, Rs 137.00, Rs 270.00, Rs 4425.00 Respectively
Product Description of ghee
1. Product Name : Ghee
2. How it is to be used : Directly or indirectly as a Cooking or flavoring
medium in food preparation.
3. Packaging : Packed in multiplayer co Extruded film (food
grade) In different pack size (200ml, 500ml &
1000ml) and in bulk lacquered Tin containers.
4. Shelf Life : Six months from date of packing at room
temperature when stored in cool & dry place.
5. Where it will be sold : At all provision stores, at Nandini retail points &
wholesale dealers
6. Labeling Instructions : Best before six months from the date of packing
when stored in cool and Cool and dry place.

Intended Use
1. What is normal use of the product? : As a cooking and flavoring
medium.
.
2. Who will consume the food? : All type of people.
3. Is the food intended for high risk population? : No
4. Is the food intended for retail or food service? : Both
5. Is the food required to be transported under : Ambient only
ambiant insulated or refrigerated conditions.
6 .Is the food held refrigerated/ frozen/ : No

Ghee Production:
1.
Collection of
cream in
cream storage
tank
2.
Pumping through cream
chiller
3.
Collection of cream
in butter
4.
Curing
5.
Collection of butter in
trolley
6.
Collection of
buttermilk in cans
8.
Transferring into butter
melting vat
7.
Draining of sour
butter
9.
Collection of melted
butter in ghee
11.
Holding 10-15
minutes
10.
Cooking of butter fat
(118-120) deg
12.
Cooking to 17-
80 degree
13.
Collecting in ghee settling
tank
14.
Cooling & settling of ghee
15.
Collection of ghee in
balance tank
16.
Receipt of film/ tins/
corton
17.
Packing at 40-45 deg c
18.
Online loading
19.
Storage
20.
Dispatch

D) Peda
Nandini Peda made from pure Milk.
Available in 100 gms & 250 gms packs.
Product Description of peda:
1. Product Name : Peda
2. How it is to be used : As a sweetmeat
3. Packaging : Butter paper liner in carton
Packing (250g)
4. Shelf life : 8 days from date of packing at ambiant
temperature.
5. Where it will be sold : At nandini parlors, nindini retail
stores, wholesale dealer.
6. Labelling instructions : best before within 8 days from
date of packing, milk based
highly perishable
7. Is special distribution control : No
Needed
8. Product specification : Internal

Intended use
1. What is normal use of the product? : Direct consumption as Sweet
2. Who will consume the food? : Everybody
3 Is the food intended for high risk Population? : No
4 The food intended for retail or food Service? : Both
5 Is the food required to be transported under : Ambient.
ambient, insulated or refrigerated Conditions.
6 Is the food held refrigerated/ frozen/ : No.

Peda Production:
1.
Collection
of raw
milk in cans
2.
Dumping the milk
In to Khova pan
4.
Receipt of Sugar
3.
Evoperation
5.
Addition of sugar
6.
Transferring the
production
7.
cooling
8.
Working & dyeing
10.
Packing
11.
Stamping
9.
Receipt of Packing
material
12.
Storage
13.
Dispatch

5. McKINSEY’s 7’s Model
The 7-Ss are
Structure
Shared Values
System
Style
Staff
Skills, and
Strategy
Mc Kinsey‟s 7-s framework was developed in the late 7‟s by Mc Kinsey company
a reputed management consultancy firm in the United States.
The framework rest on the proposition that effective organizational change is best
understood in terms of the complex relationship between strategy, structure, systems,
style, skills, staff and shared values(or super ordinates goals)- the 7S‟s.
Hard’s
Soft’s

Organization Structure of TUMUL:

 Structure
The way the organization is structured and who reports to whom. The most
important resource of organization is its people, how they are organized is crucial to its
functioning and accomplishing successful implementation of its strategy.
In simple structure is a pattern in which various parts or components are inter-
related and inter-connected. So organization structure is a pattern of relationships among
various activities and positions, The structure defines the relationships among people in
the organization.
Each division is responsible for its marketing of milk products and related
activities and up to an extent they are responsible for maintaining accounts of their
income and expenditure.
 Strategy
The integrated vision and direction of the company, as well as the manner in
which it derives, articulates, communicates and implements that vision and direction.
Tumkur Milk Union Ltd. will endeavor to become learning and knowledge based
organization. The company will establish itself as a preferred supplier of milk by
delighting the customers with its products and services.
Cost Minimisation:
The company is striving to become one of the most cost competitive plants in the
industry and generate wealth to serve its shareholders, the surrounding community and
the nation. By establishing 4 chilling centers it‟s cutting the cost of transportation.
Consistent with the purpose of improving the quality of life in India through leadership in
sectors of national economic significance, Tumkur Milk Union Limited will strive to lead
the milk producer industry. This shall be achieved through high productivity; continuous
improvement and technological break-through. Tumkur milk Union Ltd would endeavor
to return to society what it earns by creating a difference in the lives of people in its
immediate surroundings.

Focus:
The main focus of Tumul is to provide more money per liter to it‟s member
farmers through higher productivity. It also takes care of their cattle breeds and for that
reason there are AI centers and veterinary hospitals.
Differenciation:
Tumkur Milk Union is committed to supply safe Milk & Milk Products to the satisfaction
of customers by:
Complying with statutory and regulatory requirements
Constant communication with all parties involved in the food chain
Adopting GHP, GMP & HACCP
Adopting scientific processing methods
Providing appropriate training to employees
This commitment is supported by measurable objectives and brings about continual
improvement.
 System
The decision making system within the organization can range from management
institution, to structured computer system to complex aspects of systems and artificial
intelligence. It includes
 Computer system
 Operational systems
 HR systems
The process and flow that shows how the organization get things done from day
to day activities. Systems cover formal and informal procedure that governs every day
activities covering everything from management point of contact with the customer.

 Shared values
These are called “super ordinate goals” when the model was first developed.
These are the core values of the company that are evidenced in the corporate culture and
general work ethics.
Shared values mean that the employees share the same guiding values. Values are
things that you would strive for even if they were demonstrably not profitable.
Values:
The following are the values bound by TUMUL-
1. Honesty
2. sincerity
3. discipline
4. quality
5. faith
6. impartiality
7. cost consciousness and transparency
The employees of Tumul are working according to the values of the company.
They are punctual to the work. Coordinating with other departments and maintaining
hygiene near the procurement, production, packaging and products departments.
 Style
Style refers to the employees shared and common way of thinking and behaving
unwritten norms of behavior and thought:
 Leadership Style
 Organizational Culture
Here style implies the leadership approach of top management and the company‟s
employee‟s way of thinking and behaving. The style is the tangible evidence of what

management considers important, the way it collectively spends time and attendance and
uses symbolic behavior.
In tumul even though the leadership style is centralized the respective authorities
and responsibilities have been given to the respective department managers and deputy
managers. This helps them to take on time decisions which may not require the nod of
MD at that moment only.
 Skills
A skill refers to the fact that employees have the skills needed to carry out the
company‟s strategy. Training and Development ensuring people know how to do their
jobs and stay up to date with the latest techniques.
Skills have been classified into Conceptual skills, Technical skills and
interpersonal skills by Mintzberg.
TUMKUR Union Limited is committed to upgrade the skills and knowledge of its
workforce for developing all employees into knowledge workers. In order to achieve this
The company will strives to
 Provide both „on the job‟ training to its employees
 Prepare and implement a training plan based on identified training needs to
develop employees as better human beings.
Technical skills:
Technical skills which are required to do the job in Tumul are to have thorough
knowledge of computers and the softwares used in the respective departments. The
softwares which are used in Tumul are Delta Information Systems, Mysore. Website is
created by Cyrus solution, Banalore. Respective departments need specific qualified
candidates like quality control department hires the candidates who have Bsc
background, MIS takes MCA and MBA holders, Production department has BE in IEM
background candidates in the top positions.

Various training programmes such as CMP Training, MCM training, President training,
AI Single & Cluster, AMCU, First Aid, Secretary, Tester training & P.D training are
being arranged from time to time to enhance work efficiency. The officers of the union
are also being trained in different disciplines. So here according to department wise
technical training is needed to the freshers so that they can be successful in their jobs.
Interpersonal Skills:
There is HR department in the administration section. Here they inspire the employees to
go for more productivity by providing them few allowances like shift allowance, medical
reimbursement facilities and promotions based on their seniority and experience. If any
conflict arises between then the deputy HR manager would take the complaints of both
the parties and the problem will be tackled formally. There is no room for indecent acts.
Conceptual Skills:
Manging Director is at the top of the hierarchy. So the final decisions are made by
him like sanctioning new schemes to farmers and finalising the tenders. If the decisions
are related to particular departments then they can be taken by the respective department
deputy managers. But for major decisions they would call MD through telephone and
take his nod.
Experience in respective department counts while managers take the decisions. So
here the managers are continuously striving for knowledge.
 Staff
Staff means that the company has hired able people, trained them well and
assigned them to the right jobs. Here in TUMUL there are 360 permanent employees.
Selection, training, reward and recognition, retention, motivation and assignment to
appropriate work are all key issues. All these employees are striving hard to contribute
the organizational development at Tumul and achieving at the individual level.

6. FUNCTIONAL DEPARTMENTS
6.1 FINANCE
TUMUL is one of the 4 dairies initially started by KDDC. This diary was
established with initial investment of RS 4,63,22,360 borrowed as loan from NDDB as
IDA loan. The fund given by NBBD has generated from world bank and it has been
given loan from government of Karnataka or guarantors.
The funds given by NDDB as IDA loan was used for the construction of diary,
installation of commission of plant, machineries, equipment in the diary.
Functions of Finance Department:
1. Preparation of budget for integrating business plan with MIS section.
2. Maintaining related accounts for milk purchase.
3. Preparing and arranging payment for MPCS.
4. Arranging scrutiny of marketing records relating to sale of milk and milk product.
5. Arranging for writing of payment for different materials purchases.
6. Arranging remittances of taxes.
7. Preparation of payrolls of time milk union.
8. Arranging writing different books relating to salary recoveries.
9. Preparation of monthly financial accounts receipts and payments accounts trading and
balance sheet.
10. Submission of accounts to board.
11. Arranging statutory audit of accounting.
ACQUISITION OF FUNDS:
Once when the requirement of funds is identified, those funds should be acquired.
The funds of TUMUL include reserves and surplus and share capital, TUMUL issues
only equity shares, as it is a co-operative society. It owes 756.04 lakhs shares capital from
its 899 socities.

ALLOCATION OF FUNDS:
The function of providing of funds to the proper place at proper time is also
important. The finance manager should do this task. Planning for funds is a careful
estimate made by the manager about the total funds required by the union, which include
both fixed and working capital requirements. It is done by a keen observation over the
diary, as TUMUL deals with milk and milk products; the working capital requirement in
TUMUL is more before allocating the funds to the various activities the finance manager
studies the requirement of each department and then the funds are distributed.
INVESTMEMT DECISIONS:
Investment decision comprises the investment in capital and assets. The
investment decisions are made by the KMF. Investment in current assets is based on the
inventory and credit proposals pursued by TUMUL and by studying the requirement of
working capital.
TRANSACTION PROCESS
The payment are made to primary co operative societies on quality parameter i.e.
rate fixed for and SNF of milk is to MPCS, once in a week. The payment is made
thorough district central co operative bank and branches which credits money to account
of each of MPCS.
For milk sold in Tumkur throughout agents, cash collection are made in cash and
remitted to diary, sales realization are collection through checks in Bangalore area and
remitted to bank.
All purchases are accounted in main diary and inventory control is an existence.
They are controlled, registered in maintain one of accounts section pertain to payment
made under different heads.
MAINTENANCE OF BOOKS OF ACCOUNTS:
The finance department does costing in TUMUL itself. Thought the finance
department maintains cost accounts, the prices of the product of TUMUL are fixed by
KMF. Each and every transaction that takes place in the diary has to be recorded properly
for the purpose of having better control over the funds and for optimal utilization of
funds. All the transactions are recorded in journals and then posted into ledgers.
All transactions are recorded in cashbooks also and maintained in tally package,
general ledgers. All sales transactions, pay bills are computerized.

AUDITING:
There are two types of are done in TUMUL,
1. Internal audit.
2. Statutory audit.
1. Internal audit: The union has system of per audit conducted by team of chartered
accountants. This makes day to day internal audit books of accounts in all financial
activities of diary.
2. Statutory audit: the statutory audit of union is done by government department and
department of co operative society‟s audit. For this purpose an assistant director deputed
by department of co operative audit under rule 441 to milk union.
FINANCE DEPARTMENT STRUCTURE:
Deputy manager
Accounting officer
Supervisors
Clerical staff

TRADING ACCOUNT FOR THE YEAR ENDING 31.3.2010(1-4-2009 TO 31.3.2010)
SL
NO
PARTICULARS
(PURCHEASE)
AMOUNT
IN RS
SL
NO
PARTICULARS AMOUNT
IN RS
1
2
3
4
5
6
7
Opening stock
Purchase of milk &
milk product
Cattle feed& others
Procurement &
technical services
Packing materials
Processing
manufacture,
maintenance exp
Selling &
distribution exp
Gross profit
3,31,93,446.65
1,46,69,54,597.90
32,65,33,235.55
5,38,92,316.26
3,55,92,504.59
14,11,11,557.58
5,35,84,865.66
9,05,70,559.25
2,20,14,33,083.44
1
2
3
4
Sales of milk & milk
products
Cattle feed & other
Value added tax
(VAT)
Closing stock
1,82,22,92,004.56
32,91,77,621.06
1,95,09,264.16
3,04,54,193.66
2,20,14,33,083.44

PROFIT & LOSS ACCOUNTS FOR YEAR ENDING 31.3.2010 (1.4.2009 TO
31.3.2010)
SL
NO
PARTICULAS
(LOSS)
AMOUNT
IN RS
SL
NO
PARTICULAS
(PROFIT)
AMOUNT
IN RS
I
2
3
4
5
6
7
8
9
Veterinary & technical
Services.
Staff expenses
Administrative
expenses
Taxes
Perspective plan
expenses
Interest
Depreciation
Profit before income
tax
Provision for income
tax
Net profit
1,74,91,909.45
4,57,55,010.17
17,43,80,408.70
3,99,512.00
4,12,003.62
14,52,971.00
86,25,843.55
2,59,06,319.30
21,91,981.00
1,87,14,338.30
11,74,81,977.79
1
2
Gross profit
Other income
9,05,70,559.25
2,69,11,418.54
11,74,81,977.79

BALANCE SHEET AS ON 31.3.2010 (1.4.2009 TO 31.3.2010)
SL
NO
LIABILITES AMOUNT
IN RS
SI
NO
ASSETS AMOUNTS
IN RS
1
2
3
4
5
6
7
8
9
10
11
12
13
AUTHORISED
SHARE CAPITAL
Paid up share capital
Reserves and generals
Others fund
Deposits
Loans
Grants &subsides
Others liabilities
Sundry creditors
Audit objection
Provision for
misappropriation
Outstanding liabilities
Profit for the year
2009-2010
10,00,00,00,000
8,39,62,300.00
1,77,32,295.85
10,60,74,928.39
1,08,66,196.70
2,40,26,840.75
4,32,04,548.30
4,86,57,515.87
75,37,282.26
60,445.60
1,14,498.80
1,29,12,178.80
1,87,14,338.30
37,38,63,008.82
1
2
3
4
5
6
7
8
9
10
11
Cash in hand
Cash in bank
Investments
Deposits
Loans & advance
Sundry debtors
Other assets
Fixed &floating assets
Audit objection
Recovery from sri.
Devaji rao
(misappropriation)
Closing stock
7,50,392.40
65,16,19,884.79
53,86,600.00
2,08,56,002.00
5,33,07,769.55
3,34,52,875.75
26,96,577.95
16,16,21,668.32
60,445.60
1,14,498.80
3,04,54,193.66
37,38,63,008.82

6.2 MANAGEMENT INFORMATION SYSTEM
First of all, let us look into three elements of MIS.
MANAGEMENT
What is Management?
It is an administration in an institution or Government in a state or in a country or
an Executive in an Industry.
To achieve the desired results, we make supervisions step by step. There are
different ways to manage or carry out the work. The success ways to manage or to handle
the situation is nothing but management.
The examples of Managements are:
 Personal Management
 Production Management
 Inventory Management
The management can be classified into three categories:
 Top Management
 Middle Management
 Operating Management
INFORMATION
Information is the valuable commodity required by the management in order to plan and
control its operations effectively.
Information is considered as a significant resource in the process of decision making
effectively.

SYSTEM
The third element of MIS is System.
What do you mean by System?
Everybody talks of System. If things go wrong we blame the System. Then what is
System?
The element of System is very well defined by Webster Dictionary. It says that it is set of
arrangements or things so correlated or connected to form a unit or organization.
System is a set of elements working together to achieve common objectives.
Eg. Audit, Traffic System.
Many examples could be given
Eg. Solar System, Blood Circulation System.
The broader definition would indicate that the system is a method of doing things
logically and in orderly fashion expecting results with minimum efforts.
Objectives of MIS
 To get information / data in time.
 To get information / data in a proper Performa.
 To analyze the information.
 To furnish the information to management to take decisions on time.
Types of Information:
1. Structural Information
2. Descriptive Information
The Structural Information consists of data and statements.
The Descriptive Information is remarks.

Information helps in
-Acquiring the data
- To process the data
- To maintain records
FLOW OF INFORMATION
The Lowest Level of Management is Operating Management is confined to day to day
work. They are supposed to implement the decisions already taken.
The Second Level is Middle Management. It will supervise the implementation and
provides major links and feedback the management.
The Top Management would confine itself in formulating various policies and taking
decisions to keep its position in the field.
Top Management
Middle Management
Operating
Management

Role of MIS in Decision Making
 Speed
 Accuracy
 Reliability
 Security
 Timeliness
 Understandability
Better Information
Better Decisions.
Less Decision Making Efforts.
Improved Customer Service.
Improves Confidence.
Role of MIS in Tumkur Dairy
 To collect the information
- Daily / Weekly / Monthly.
 To furnish monthly reports to
- KMF / NDDB / Others.
 To furnish monthly information to Board for Decision Making.
 Computer related works.
Milk Billing / Sales Accounting / Pay Roll / GIS / IDIS.
 Annual Budgeting-Integrated Business Plan
 Project Works.
 Monthly Variance Analysis.
 Review of Perspective Targets.
 To guide students for Project Reports.

6.3 HUMAN RESOURCE MANAGEMENT
Human resource management is a management function that helps a manager to
recruit, select, train & develop members of organization. It mainly concerned with the
people dimensions in organization
TUMUL has a very efficient HR-department also known as “Administrative
Department” the activities are very limited. But this department carries out its function
effectively & maintains good employee & employer relations.
FUNCTIONS:
1. Recruitment of candidates.
2. Selection of best suited and right person.
3. Training and development of employees.
4. Framing of rules.
5. Creating a good working environment.
6. Motivating the employees to work hard
7. Maximizing the performance of employees
8. Maintenance of records.
9. Maintenance of industrial relations.
10. Employee service & benefits.
11. Compensation.
12. Personnel audit.

HR PRACTICES OF TUMUL:
The following are hr practices of TUMUL
1. House rent allowance:- the allowance is provided to all permanent employees at
the rate of 7.5% of salary
2. Conveyance allowance:- company provide conveyance facility to its employees
from the place of residence to the place of work. TUMUL also provide these allowance
because it is situated 11 KM away from Tumkur. Conveyance allowance of 125/month
for person owing scooter/ motor cycle, RS65 for moped where as RS 35 for others will be
given.
3. Shift allowance:-It is an allowance given to employees who work in shifts(except
general shift)Shift allowance should not be taken into account for the purpose of
calculating P F ,bonus etc
4. Provident &pension Fund:- This contribution is equal to that of employee
contribution 12% of salary & it is divided between provident & pension fund as 8.33%
and 3.67% respectively the total accumulated is balanced in the individual PF account
and is paid to employee at the time of his retirement or on is leaving the service. In the
event of death of the employee accumulated balance is paid to legal hire.
5. Gratuity:- The amount of gratuity payable in generally 15 day average salary per
year. For this purpose salary includes only basic and PA
6. GSLIS:-“Group Saving Linked Insurance Scheme”
a) Death relief fund:- The company is following fund according to the Govt
declarations.
7. Leave facilities:- All permanent employees will be given leave facilities as
mentioned below
a) earned leave -30 days /year

b) casual leave- 15 days/year
c) committed /half day – 10day/year
d) government holiday as per KCSR
8. Medical reimbursement:- The work man not covered under ESI will be eligible
for medical reimbursement of Rs 5000 for inpatient and Rs 2400 for out patient
9. Handicap allowance:- Every disabled person gets 200/month
10.Washing allowance:- Washing allowance is also provided by TUMULto each
employee of Rs. 30. It will not be taken into account for the purpose of PF calculation PF
bonus ESI and gratuity.
11. Salary advance:- Workmen will be provided to avail this facility 7 times in a
year. The entire allowance amount will be deducted from the salary of the month in
which advance is paid.
The other HRM practices practiced in TUMUL are as under:
1. Canteen facility
2. Festival advance
3. Emergency and medical loan facility
4. Employment opportunity
5. Long service award hospitalization
6. Cold storage allowance
7. Employee state insurance
8. Heat allowance
9. Trip allowance
10. Overtime allowance

12. Promotion
Promotion for the employee is given on seniority basis. For promotion, individual
employee should have a minimum working experience of 8 years in a particular
department. ie 5 years.
13. Trade union
. There are two recognized trade unions. It‟s formed by workers for legal issue
1. Dairy Employee Trade Union(DETU)
2. TUMUL Employee Trade Unions

6.4 MARKETING
Marketing department is the analysis, planning, implementing and controlling of
programs designed to bring about direct exchange of goods and money with target market
needs and using effective promotional activities to improve sales and attain the desired
profit.
TUMUL (Tumkur Milk Union Limited) has a very able marketing department. It
has a very efficient staff and well-trained Staff. They carry out the marketing activities
very well and try to reach the desired goals Within a specified time period.
Departmental hierarchy:
Marketing department comprises of departmental head and, further divided into two
categories and further into officers, then to superintends, salesman and dispatchers.
The hierarchy is as follows -
Development officer Routine officers
Marketing officer Sales personnel
Route inspectors Supervisors
Inspectors
Sales men
Dispatchers

Functions
1. Collection indent form retailer session wise.
2. Preparation of distribution sheet.
3. Preparation of indent for production.
4. Awarding of distribution contract.
5. Distribution of Milk and Milk product.
6. Appointment/cancellation of retailer ship.
7. Redressel of customer complaints.
8. Product Movement.
9. Appointment of retailers.
10. Development activities.
Purchase of Milk From:
Villages: 2400
Societies: 3,20,000 litres of Milk will purchase per day.
Five variants of Milk:
1. Toned Milk
2. Full cream Milk
3. Homogenized cow Milk
4. Homogenized cow toned Milk
5. Standardized Milk

Total curds sales TUMUL Per day: 13,500kgs
Total Milk sales TUMUL per day: 1,43,000ltrs
Channels of Distribution:
42 Distribution vehicles are there.
40 are Insulated vehicles
2 are Refrigerated vehicles
13 Milk unions all over Karnataka:
1. Bangalore Dairy 7. Shimoga
2. Mother Dairy 8. Bellary
3. Mandya 9. Belgaum
4. Mysore 10. Dharvad
5. Kolar 11. Mangalore
6. Tumkur 12. Gulbarga
13. Hassan

Commission to the Retailers is as follows:
Toned milk Rs.0.56 per litre
Ghee Rs.20.91 per litre
Curds Rs. 1.50 per litre
Peda Rs. 23.56 per litre
Masala butter milk Rs. 0.50 per litre
TUMUL
WHOLE SELLERSRETAILERS
CONSUMERS SHOPS SHOPSCONSUMERS

Major competitors:
The major competitors of TUMUL are the loose milk vendors, but the other brands are:-
Arogya
Dodla
Jersy
Agrigold
Tirumala
The private brands are promoting these products through major advertising, more retail
margins, etc.
Promotional Activities:
1. Door to door campaigning: this is done through the sales force team by
questioning the consumer, reasoning them, mailing brochures etc. this is carried on
periodically.
2. Organizing meetings: meetings on important public places and inviting important
people like doctor, professional, government officer‟s etc.
3. Visit to mahila mandals: visiting to mahila mandals and creating awareness about
the product and its benefits, inviting them to the plant and shows them the production.
4. Visit of school children to the dairy and promoting their products through them by
issuing samples.
5. Inviting the consumer forum and creating awareness to them.
6. Participating in trade shows, exhibition and educate people.
7. Through advertising in major media like T.V, newspapers, hoardings.
8. It sells its product under the brand name “Nandini”.

6.5 QUALITY CONTROL
Quality Control department in the dairy industry Aims at confirming quality input
from societies and also bulk receipts from chilling centers. Here primarily the specific
gravity (density) of milk- as CLR and percentage of fat are tested and relatively SNF is
read from the chart made out using the formula CLR/4+0.25*Fat%+Constant fat 0.35.
The basic requirement of milk is 3.5% fat and 8.5% SNF (Solid Not Fat)
Process of checking the quality of milk:
The milk coming from cooperative societies in various routes reaches in lorries of
various capacities likewise by tankers from chilling centers. First the milk which is
present in the cans in checked normally by a skilled person so that they can make sure
that there is nothing bad in the milk. After that the sample of each society /is taken in the
sample bottles.
Specific Gravity:
The coded milk samples specific gravity is measured as CLR( Calibrated
Lactometer Reading) as per ISI the specific gravity of milk is to be volumetrically tested
at 27 dg C. Hence samples temperature is adjusted and lactometer float in milk is taken as
reading when it is put to the jar. The specific gravity of milk is over and above water
which is 1.0 hence the relative reading of Lactometer is taken as 1.0+28/28.5/29 and
denoted as 1.028/ 1.0285/ 1.0290. More thicker the milk the reading will be more or vice
versa.
Electro Milk Tester (EMT)
After knowing the density the milk sample is fed to Electronic Milko Tester by
following the standard estimation method. After this the EMT machine will display the
fat percentage of that milk sample. Based on fat display and obtained CLR, SNF
percentage is read from the chart which is a ready reckoner available with the testing
platform. These results of quality will form basis for effecting payment to the society
supplying milk.

6.6 PRODUCTION
In TUMUL milk union is mainly concerned with production of milk and other by
product such as cured, better milk, ghee, peda and butter. The products of other by
product are taken care by a separate department known as product department and
production of milk and cream is taken by production department.
ORGANIZATION CHART OF PRODUCTION DEPARTEMENT
DEPUTY
MANAGER
Helper
Supervisors
Officers
Assistant
manager
Technicians

OBJECTIVES OF PRODUCTION DEPARTMENT
Production is an organized activity in a manufacturing organization. Each
organized activity must spell out its objectives so that its existence can be justified. On
the basis of the edger of attainment of this objectives. More over such identification of
the objective increases the consciousness of the personnel working in the respective work
the started objectives of the organization.
The primary responsibility of manufacturing activity is to produce a product or
products at:
1) Pre-established cost
2) According to the specified quality
3) Within stipulated time schedule
FUNCTIONS
1) Procurement of raw milk
2) Maintain and produce the standard quality products
3) Cost of production
Types of products produced
1) Milk
2) Peda
3) Ghee
4) Butter milk.
5) Curd.

7. SWOT ANALYSIS
ENVIRONMENTAL SCAN
Internal Analysis External Analysis
Strengths Weakness Opportunities Threats
SWOT Matrix
SWOT analysis is the tool for auditing an organization & its environment. It is the
first stage of planning & helps markets to focus on key issues. Once key issues have been
identified, they feed into marketing objectives. It can be used in conjunction with other
tools of audit and analysis.
“SWOT” stands for strengths, weakness, opportunities and threats. Strengths and
Weakness are within the company where as opportunities and threats are external factors.
Strengths: Strengths are its resources & capabilities that can be used as a basis for
developing competitive advantage. It means the power of the organization to utilize the
available resources in maximum extent to achieve the goals of an organization. The
power may be in the form of finance, HR, place, ownership etc.
Weaknesses: Attributes of the person or company those are harmful to achieving the
objectives.
Opportunities: External Conditions those are helpful to achieving the objectives
Threats: External Conditions which could do damage to the objectives.

7.1 STRENGTHS:
1) A high processing infrastructure.
a) Dairy plant with a capacity of 3,73,000 kgs per day.
b) Facilities to manufacture ghee, curd, peda, butter, butter milk
2) Brand support of NINDINI by KMF, this brand image is well established in the market.
3) TUMUL enjoys a strong customer based in their domestic market they have captured
almost 55% of market share in the domestic market.
4) Technological support from NDDB each and every development stages of the
organization.
5) The organization is capable of meeting the large demand, which cannot be met by any
other sources.
6) Large network of organized suppliers for the procurement of milk.
7) It has an automated production process, which helps them to reduce the cost of
production per unit.
8) The organization won market monopoly.
9) There are no giant competitors.
10) TUMUL has a strong customer base.
7.2 WEAKNESSES:
1) Lack of well experienced engineering personnel. All superior posts in all the departments
are filled through promotions.
2) Longer distribution routes and retailers points, it can cause delay in production,
distribution
3) Tight overhead cost.
4) Centralized decision making is the burning problem in the organization since it takes very
much of time, due to lack of co operation between different departments.
7.3 OPPORTUNITIES:
1) The market potential is large so that there is ample scope for improvement of sales.
2) Opportunity to introduce product range.
3) Large area of land is available for different activates.
4) Increase the level of customer awareness.

7.4 THREATS:
1) Large numbers of competitors are entering into the market.
2) Unethical practices of competitors.
3) A group of unorganized local vendors can dominate the market.

8. FINDINGS
 TUMKUR MILK UNION is a cooperative institution which has the motive of social
service. It‟s engaged in the production of milk and milk products.
 TUMUL sells its all products to the Nandini milk parlors and general public for
consumption.
 The mode of procurement of milk is through the societies formed by the farmers. Using
tankers and vans milk is procured from 899 societies through 84 routes.
 TUMUL has Production, Quality Control, Human Resources, Marketing, Finance and
Management Information System departments.
 In the plant portion of the site is under construction to build the infrastructure which is
required for more procurement and production.
 The financial statements of TUMUL are prepared in accordance with Companies Act of
1956.
 Annual turnover 2009-2010 was 21982 lakhs as against 18356 lakhs in 2008-2009.
 Milk sale in 2009-2010 was 144630 liters per day compared to 135331 liters in 2008-
2009.
 There is also work of construction going on of Canteen and Vighneshwara temple for the
betterment of the employees.
 Daily reports which are prepared by all the departments should be signed by the
Managing Director as he is the head of this plant.
 In Tumkur milk union economic position of the respondents is good compared to any
other company through these employees having only qualification, their working
knowledge is very good.
 Recruitment news will be published in the local and other Kannada newspapers.
 Selection of the qualified employees will be done by the HR manager and MD of Tumul.
 New quality incentive of 10 paise per Kg of milk to Society staff has been brought in
2010.
 Nandini Shubam Milk containing 4.5% Fat & 8.5% SNF released to the market from
May 2011
 Promotion for the employee is given on seniority basis. For promotion, individual
employee should have a minimum working experience of 8 years in a particular
department.

9. SUGGESTIONS
Promotional activities: The organization has to promote their products through
promotional activities like more advertisement of the products in different ways.
Competitors: TUMUL is facing with some other brands like Arogya, Swastik,
Heritage etc, in order to avoid the competition, it may put more effort in creating
awareness among the customers and design or develop appropriate promotional
strategies.
Quality of milk and packaging: As quality plays an important role any amount of
marketing effort is of waste if the product is not of satisfactory quality. Hence the union
has to aim at reducing the time gap between the procurement and distribution.
Public relation: The public relations can be increased by the organization this can be
done by visiting the customers along with the agents within their territory there by
developing healthy relations.
Consumer awareness program: The customer awareness program can be
conducted by the organization.
Transportation: The tender allocation may be done to the responsible transportation
agents/services. And the delivery staff has to be trained to behave like salesman, because
they are the representatives of the union.
Refrigeration facility: It has been studied that there is demand for milk throughout
the day hence some of the agents (not all) have purchased a refrigerator at their own cost
and sell the milk at an extra cost and this is also loss to the customer. Hence the provide
refrigerator facility to the agent at subsidized rates.
Crates: The crates should be kept clean and they should be immediately replaced in
case of damage, because the damaged crates are prior to results in damaged pouches of
milk. Therefore effective supervision is necessary through the line from processing till
delivery.

10. CONCLUSION
To conclude, milk and milk products are the main daily necessities of human life
for all age group. From the study it is revealed that NANDINI is the only branded milk
operating with no union jurisdiction. The union has not gained considerable market share.
Since it is in co-operative sector the union works in the interest of producers and
consumers. Their main motive is the welfare of the farmer members.
The organization has to give importance to agents who are going to play keenly in
pushing the Nandini products. Hence the organization has to undertake the sales
promotion activities for motivating the agents as well as consumer to push the products
hard in the market.
In today‟s competitive world though many unorganized sectors have emerged, still
TUMUL‟S NINDINI milk and milk products are unique.

11. LEARNING EXPERIENCE
 It is a great experience at TUMUL where we learnt many things about the
functioning of the company in accordance with the present market trends.
 We being the students of MBA were exposed to working environment.
 We saw the coordination between the juniors and seniors. How juniors were
giving respect to the seniors. Even though at computer work new entrants are
more faster they used to take the guidance of their superiors. It shows that
experience matters.
 Since TUMUL is an organization which produces edible food hygiene is rightly
maintained. So it helped me to learn why different organizations have different
policies of maintenance.
 We came to know how management maintains relationship with workers, how
they handle grievances. We came to know how to interact with the people of the
organization
 This helped in developing our knowledge & it gave a practical experience of
the industrial scenario in the competitive environment outside the realms of the
institute. Also understood that only through team work, every work could be
completed and mission can be accomplished.
 Journals and ledgers were treated important in this organization also because
there are the basis for any transaction which have been occurred. So got to
know why we had these chapters in our fundamentals of accounting.
 TUMUL has given more important to the customer satisfaction. By this we
have learned the strategies to be adopted for customer satisfaction.
 We observed the working technologies, management process, hierarchical
relationships among the employees and practices of organization like training,
safety and welfare etc...
 We have studied the traits and qualities essential for executives and manage
motivation, leadership, understanding the needs of subordinates. We studied
about human resource skills, which indicate ability to deal with subordinate in a
human approach to their problems, develop personnel support and team spirit.

 Amiable relations between the various departments make it possible for
TUMUL to optimize its functioning. Self managing, thinking and ability to
adjust to new environment have enhanced. We also came to know about the
importance of training and development which will help an employee for their
career building and self development.
 Thus internship training has honed personal attitude like skills, talent, abilities
and attitude etc…which would guide us in contribution to Nation by working
efficiently in organization which fosters top performance.

12. BIBLIOGRAPHY
A. Books
a. V.S. Ramaswamy & S.N. Namakumari, Marketing Management,Macmillan Publishing
India Ltd, Fourth Edition:2009
b. Dr. K. Ashwathappa, Production Operation Management, Himalaya Publishing House,
First Edition: 2008
c. P. Subba Rao, Human Resource Management, Himalaya Publishing House, First Edition:
2008
B. WEBSITE
www.tumulcoop.com
www.kmfnandini.coop
C. News paper
Business Times, Business World
D. Report
Company Annual Report

An Organisational study at TUMUL, Tumkur, Karnataka

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