1

INTRODUCTION

“Dairy is a place where handling of milk and milk products is done and technology refers to

the application of scientific knowledge for practical purposes. Dairy technology has en

defined as that branch of dairy science, which deals with the processing of milk and the

manufacture of milk products on an industrial scale.”

Developed dairying countries such as the USA, the year 1850 is seen as the dividing line

between farm and factory scale production. Various factors contributed to the change in these

countries viz., concentration of population in cities where jobs were plentiful, rapid

industrialization, improvement of transportation facilities, development of machines etc.

whereas the rural areas were identified for milk production, the urban centers were selected

for the location of milk processing plants and product manufacturing factories

These plants and factories were rapidly expanded and modernized with improved machinery

and equipment to secure the various advantages of large-scale production. Nearly all the milk

in the USA before 1900 was delivered as raw (nature) milk. Once pasteurization was

introduced, it developed rapidly. Mechanical refrigeration helped in the rapid development of

the factory system of market distribution.

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DESIGN OF STUDY

Scope

The study helps to get an overall idea regarding the various departments in the organization

and overall functions of organization. This organization study mainly focuses on

organizational setup, overall performance, departmental performance etc.

Apart from this,

To get a practical vision of the organization apart from the theory which have been

learned in the class

To understand the actual working condition

To get in touch with the industrial and organizational environment.

Objectives of the study

The overall objective of this study in, Hassan Co operative milk Producers society union

limited HASSAN is to acquire knowledge about the functioning of the organization. The

other specific objectives are as follows:

To familiarize with the organizational functions.

To understand the organizational structure.

To study the structure and functions of various departments.

NEED FOR THE STUDY

To make M.B.A programme more relevant with respect to the necessities of the corporate

or the industries.

To cover various aspects of general management such as organizational structure,

functions of respective department in the organization.

To include inculcate student practical knowledge of corporate world

Limitations of the Study

Because of official secrecy the managers of the company are not ready to give certain

data.

Could not get sufficient time to interact much with the senior managers as they were

always busy with their works.

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Industry profile

Milk

“Milk may be defined as whole, fresh, clear lacteal serration 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 minerals.”

The major constituents are phospholipids, sterols, vitamins, enzymes, pigments etc. the true

constituents 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.

Milk is rich in energy giving fats healthy giving vitamins body buildings proteins and bone

forming minerals which help build muscles you need to throw ball or climb a tree. One 200

ml glass of milk provides a power-pack of nutrients a child needs daily. This is how a glass

of milk fulfills your daily requirements of nutrients in percentage terms.

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Dairy in India

In India, dairy has been practiced as a rural cottage industry since the remote part. Semi-

commercial dairying started with the establishment of military dairy farms and co-operative

milk unions throughout the country towards the end of nineteenth century. During the earlier

year, each household in those countries maintained its family cow or secured milk from its

neighbors 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.

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In India, the market milk technology may be considered to have commenced in 1950 with the

functioning of the Central Dairy of Aarey milk colony, and milk product technology in 1956

with the establishment of AMUL dairy, Anand. The industry is still in its infancy and barely

10% of our milk productions under goes organized handling.

HISTORY OF INDIAN MILK MARKET INDUSTRY

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

Farms.

Handling of milk in co-operative milk unions established all over the country on a small

scale in early stages.

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

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

at

Aarey - 1950

Calcutta (Haringhata) - 1958

Delhi - 1959

Bombay (Worli) - 1961

Madras - 1963

Establishment of milk plants under the 3- year plans for dairy development all over India.

They were taken up with the dual object of increasing the national level of milk

consumption and ensuring better returns to the primary milk producer. These main aims

were to produce more, better and cheaper milk. Indian represents one of the world’s

largest and fastest growing markets for milk productivity by march 1999, it was 74

million tones, and by 2001 it reached to 88.5 million 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.

AMUL

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A situation prevailed in the case of milk about Pre In dependence; when toe exploitation by

middlemen 'had forced the milk producers to sell milk at throw prices. The answer to such a

situation was found in developing a system that enables milk producers to own and operate

not only their processing facility, but also the inputs, delivery machinery, and the marketing

of finished products.

The integrated approach first proved very successful in Kaira-the AMUL organization and

through the Operation Flood Programme, aimed to establish similar farmer's organizations in

18 districts in the country. The Programme when implemented did face some preliminary

problems, but these were overcome, so much so that when the IBRD and

World Bank came forward to finance dairy projects in Karnataka, Rajasthan and Madhya

Pradesh. The results were that 12 milk producer’s cooperative unions were established.

Based on the success of these 30 unions; bodies owned by the farmers themselves. The other

phase of dairy development and operation flood" being implemented to bring the total

number of such district unions to 155, and cover some 10 million farmers.

The success of these 30 unions have further demonstrated that problems can best solved if

the agency implementing the programme is owned and operated by the producers

themselves, who employ the best professionals that the responsibility of such an organization

is not only to guarantee a remunerative market for the rurally produced commodity by its

member producers, but also guarantees a package of input for enhancing production (milk)

and ploughs back the profit for further development. Again, in the case of milk, since

marketing of the product was largely controlled by middlemen/trade/cattle keepers/etc., the

organized dairy was not in a position to pay a better price to the milk producers. Market

intervention was therefore required to enable these dairies to supply milk to the consumers at

reasonable prices. This was the first time that food aid skimmed milk powder, and butter oil

in this case-was used to prime the pump of the modern dairies in four metropolitan cities

(Calcutta, Bombay, Delhi and Madras), and permit them to demand on all much large scale.

The funds generated through the sale of skimmed milk powder and butter oil were used to

build up farmer’s organizations in the milk sheds those supplies to these metropolitan cities.

KARANATAKA CO-OPERATIVE MILK PRODUCERS FEDERTION

LTD [KMF]

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It is the apex body in Karnataka representing dairy farmer’s co-operatives. It is the third

largest dairy co-operative amongst the dairy co-operatives in the country. In south India it

stands first in terms of procurement as well as sales. One of the core functions of the

federation is marketing of milk products. The brand “NANDINI’’ is the household name for

pure and fresh milk and milk products.

K.M.F. has 13 milk unions throughout the state which procure milk from primary dairy co-

operative societies {DCS} and distribute milk to the consumers in various towns/cities/rural

markets in Karnataka.

The first ever World Bank funded dairy development program

in the country started in Karnataka with the organization of village level dairy co-operatives

in 1974.The AMUL pattern of dairy co-operatives started functioning in Karnataka from

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1974-75 with the financial assistance from world bank. The dairy co-operatives were

established under the Anand pattern in a three tier structure with the village level dairy co-

operatives forming the base level, the District level milk unions at the middle level to take

care of the procurement, processing and marketing of milk and the Karnataka milk federation

as the apex body to co-ordinate the growth of the sector of the state level.

Co-ordination of activities among the unions and developing market for milk and milk

products is the responsibility of KMF. Marketing milk in the respective jurisdiction is

organized by the respective unions. The federation monitors surplus/deficit of liquid milk

among the member milk unions. While the marketing of all the milk products is organized by

KMF, both within and outside the state, all the milk and milk product are sold under a

common brand name “NANDINI”.

UNITS OF KMF

KMF has the following units functioning directly under its control.

Mother Dairy, Yelahanka, Bangalore.

NANDINI Milk Products, KMF complex, Bangalore.

Cattle Feed Plants at Rajanukunte/ Gubbi/ Dharwad/ Hassan.

NANDINI sperm station {formerly known as Bull Breeding Farm & Frozen Semen

Bank} at Hesaraghatta.

Pouch film plant at Mannekolalu, Marthalli.

Central Training Institute at KMF Complex, Bangalore.

Quality control lab at KMF Complex, Bangalore

COMPANY PROFILE

Hassan co-operative milk producer’s societies union ltd was established in 1975, with an aim

to support small marginal farmers and agricultural labours with through dairy

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development .has the farmers are not sure of receiving a remurative price for their

agricultural produce more and more farmers are taking up diary as their main occupation

rather than subsidiary occupation for their livelihood. The milk union is committed to accept

all the milk offered by the milk producers in the milk shed area and hence their is a

considerable increase in milk procurement during 2009-10. Hassan milk union believes that

it is a social obligation on part of the union to pay remunerative price to d farmers and hence

it has entered new far off market like Pune and Kolhapur in Maharastra, Trivendrum and

Kollam in Karla

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BACKGROUND INCEPTION OF THE COMPANY

The Hassan Co-operative Milk Producer Society Union Ltd. (HCMPSUL) has came into

existence on in the year 1975.is situated in the industrial estate beside the national highway

(NH48),it with the object to develop dairy development activities in the rural area.

In June 1974 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 4 districts of Karnataka such as Mysore, Hassan,

Tumkur, and Bangalore.

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 has registered on 30 th

March 1977 after formation of milk societies. The operational jurisdiction of the union

extended to 3 districts namely Hassan Chikkamagalore and Kodagu. ISO 9001:2000 Quality

management systems has been implemented in our unit and effort on to implement HACCP

at the earliest

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COMPANY VISION, MISSION, AIMS AND OBJECTIVES

VISION

“The union thrives hard to adopt the mode and eco friendly technologies to produce milk and

milk products of international standards to make our presence prominent the global market “

MISSION

“Hassan milk union aims to render the best services at nominal cost to its membe1 increase

milk production and produce good quality milk by paying remunerative price throughout the

year, thereby improving their economic and social condition while ensuring high quality milk

and milk products to the delighted level of the consumer”

AIMS AND OBJECTIVES

Hassan co-operatives milk producers "societies" union is completely an autonomous body

consisting of representative from milk producers as policy makers. The area of operation is

the districts of Hassan, kodagu and Chickmagalore. The milk union also aims at sustainable

development in rural areas through meticulous planning, training, strict implementation and

follow up of progress of various schemes offered by, both state and central government.

Formation of dairy co-operative societies under the principle of co-operation to encourage

small, marginal farmers and agricultural labors to take up dairy activities.

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

supply quality milk to customers in the urban areas at a competitive price

To provide the technical inputs necessary to produce good quality milk and to facilitate

increase in milk yield.

To provide self employment to rural folk and to make them economically self sustainable by

which the migration of rural folk to urban areas is minimized.

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HISTORY, HASSAN CO-OPERATIVE MILK PRODUCERS

SOCIETIES UNION LIMITED (HCMPSUL)

Hassan Co-operative Milk producers Union Limited (HCMPSUL) is a District Level Milk

Co-operative society established under KMF on 30th March 1977 with a capital of 2 crores.

At the beginning it was started in a small shed beside Seetharamanjinaya Temple near 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 3 Chilling centers in

Holenarsipur, Hassan District.Kudige in Coorg District and Birur in Chikkamagalore and a

new chilling center in Chanarayapatna. These chilling centers have been kept aside for the

easy storage of milk for the distribution in 3 districts Hassan. Chikkamagalore & Coorg.

Milk is been collected daily in two shifts a day from 1000 societies in the Hassan District &

IS been Processed & dispatched to 3 districts and also to other dairies in the state and

outside.

Sl.no Dairies & Processing unit Capacities

1. Hassan 1.2 Lakh LPD

2. Kudige in Coorg District 50,000 LPD

Sl.no Chilling Centers Capacities

1. Birur in Chikkamangalore District 20,000 LPD

2. Holenarsipura in Hassan District 20,000 LPD

3. Channarayappttana 1,00,000 LPD

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NATURE OF BUSINESS CARRIED

Hassan milk union carried business of producing and marketing milk and milk products, such

as peda, curd, ghee, Butter milk.

Hassan milk union procuring surplus milk in the rural area and provide input activities to

dairy co-operative societies like artificial insemination, supply cattle feed, animal health care

programs for the uplifment of the producers. It purchased some products from KMF such

products are Nandini milk -tone bottle, badam powder, jamoon mix, Nandini bite, skimmed

milk powder(SMP), Mysore pock etc.

All the above products are marketing and selling by the Hassan milk union through

wholesalers and retailers to the consumers.

FUNCTIONING OF DAIRY CO-OPERATIVE

The dairy co-operatives function all through the year in two shifts, this will provide

continuous market fir the surplus milk produced and the payment for the milk supplied will

be disbursed to the producers on the predetermined day. The dairy cooperative 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.

ACTIVITIES, OF HASSAN CO-OPERATIVE MILK PRODUCERS

SOCIETIES UNION LIMITED (HCMPSUL)

1. Organization of Dairy Co-Operative Societies

As at the end of June 2011 1211 societies have been registered of which 1125 are functional

Out of functional societies 134 are women societies 120 step women societies are

functioning To enhance the socially and economically development of women.

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2. Membership Enrolment

As on 30th June 2011 1,73,867 members have been enrolled of which 71143 are small farmer,

48989 are marginal farmers, 22,249 are agriculture labourers, and 31486 are other big

farmers. Out of the total 11,659 belongs to SC members, 4,367 belongs to ST members.

57457 members belong to women members

3. Milk Procurement Activities

The present average milk procurement from 1125 milk societies is around 4,02,067kgs/day.

During the month of June the average procurement /DCS/day is 404kgs and the average

transportation cost per kg of milk procurement IS 33 paisa. The average fat is 4.10% and

average SNF is8.51 %.

INPUT ACTIVITIES

A. VETERINARY

It 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 centers 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.

Place Capacity (LPD) Capacity utilization

(LPD)

% of capacity

utilization

Hassan Dairy 1,20,000 215.366 179.47

Holenarsipur Chilling

centre

20,000 56,000 282.44

Birur Chilling centre 20,000 48,000 242.06

Kudige Dairy 50,000 38,321 76.00

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B. ARTIFICIAL INCEMINATION

To improve the breeding facilities there are 22 single AI centers and 82 Cluster AI centers

are working in the union area. These centers are covered around 90% of the DCS. An

average of 25,000 inseminations is carrying out every month. 4,115 male cows and 4204

female total 8319 cross breed cows have been born during June 2011.

C. FEEDS AND FODDER

The union is uncovering the farmers and the producers at the village level in growing

moderninised fodder. Ex. union is supply C01, C02 and Napier roots and SSG seeds, cow

pea seeds and seasonal seeds to the producers. The union is also arranging straw treatment

demonstration, silage demos at village levels. The union is supplying around 3000 metric

tons of cattle feeds and an average 6000 kgs of mineral mixtures to the society members.

Nearly 98% of the functional societies have been covered under cattle feed sales.

D. TRANING FACILITIES

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 Bangalore.

OTHER PROGRAMME

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

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C. YASHASWINI HELTH 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 8 bulk milk coolers and 48 automatic milk

collection centers which are functioning in the milk societies.

AN OVERVIEW ACHIVEMENTS AND AWARDS OF (HCMPSUL)

ACHIVEMENTS

Hassan milk union is procuring milk from all the 13 taluks of three districts and selling

quality milk in all the taluks and small towns.

The union and all the dairy co-operatives are being managed by the democratically

elected boards from among the milk producers.

The union has rendered emergency veterinary services round the clock.

The union has implemented foot and mouth disease control program.

The union supplies quality fodder slips and seeds through the year and facilitates the

availability of green fodder.

HCMPSUL AWARDS

Energy Conservation Award: Received on 14th Dec 2004 from Dr. Manamohan 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 on 14th Dec 2006 from power minister of India Sri

Sushi I Kumar Shinde.

Energy conservation Award: Received on 14th Dec 2007 II prize from Smt, Prathiba Patil

President of India. .

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PRODUCT PROFILE

The main product of HCMPSUL is milk that is processed in number of different categories

based on their fat division is

Sl.No. Products Qty. of Fat & SNF Quantity

1 Toned Milk 3.5% & 8.5%250Ml,500ML

1 Liter

2 Standardized 4.5%&8.5% 500Ml

3 Homogenized Milk 4.5%&8.5% 500Ml- 1 Liter

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 250 ml and 500 ml 1000ml packs. Nandini Toned Fresh and Pure milk

containing 3.0% fat and 8.5% SNF. Available in 500ml and 1 liter packs.

Available in 500ml and 1 Liter packs

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CURD

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

price list of Curd: At the end of June 30 2011

Sl

no

Particular Packing Quantity Price in

Rs

1 Nandini Curd Sachet 200 grams 6 -00

2 Nandini Curd Sachet 500 grams 13-00

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

Homemade curds Available in 200gm and 500gm

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BUTTER MILK

Butter Milk is a refreshing health drink. It is made from quality curds and is blended with

fresh green chilies, green coriander leaves, asafetida and fresh ginger Buttermilk is packaged

in 250ml packet.

Nandini spiced Butter Milk is a refreshing health drink. It is made from quality curds and is

blended with fresh green chilies, green coriander leaves, asafetida and fresh ginger. Nandini

spiced butter promotes health and easy digestion.

It is available in 200 ml packs and is priced at most competitive rates, so that it is affordable

to all sections of people.

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NANDINI GHEE

Ghee is made from butter. It is fresh and pure with a delicious flavour. 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, and 15 kg tins.

Price list of ghee: At the end of June 30, 2011

Sl.

No

Particular Packing Quantity Price in Rs

1

2

3

4

5

Nandini Ghee

Nandini Ghee

Nandini Ghee

Nandini Ghee

Nandini Ghee Bulk

Sachet

Sachet

Sachet

Sachet

Tin

100 ml

200 ml

500 ml

1000 ml

15 kgs

0029-00

0056-00

0137-00

0270-00

4425-00

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, temperatures. Available in 200ml, 500ml, and

15.0 kg tins.

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PEDA

Peda is very delicious made from pure milk. It can be stored for 7 days and available in

250grms and 100grams containing 10 pieces each.

Price list of Peda: At end of June, 30, 2011

Sl.

No

Particular Packing Quantity Price in Rs

1

2

Nandini Peda

Nandini Peda

Box

Box

250 grams

100 grams

60-00

26-00

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Organization structure

Fig 1: organization chart

CHAIRMAN / BOARD

MANAGING DIRECTOR

MANAGER (P&I) MANAGER (DAIRY TECHNOLOGY)

MANAGER (FINANCE)

DY. MANAGER (MARKETING)

DY. MANAGER (ADMINISTRATION)

ASSTMANAGER (MIS)

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FIG 3: DAIRY SECTOR

ENGINEERING

A.M

TECHNICAL OFFICER

DAIRYSUPERVISOR

SENIOR TECHNICIAN

TECHNICIANS

H.N PURA

BIRUR

KUDIGEDAIRY

PROCESSING PRODUCTION PACKING QUALITY CONTROL

TRANSPORT

T.O

OPERATOR

HELPER

T.O

DAIRY SUPERVISO

R

OPERATOR

HELPER

T.O

OPERATOR

HELPER

OPERATOR

HELPER

2. MANAGER (DAIRY SECTOR)

A.MA.M T.OSTORE

INCHARGE

CANTEEN COMMITTEE

STORES BOILER SECTION

24

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THE HCMPUL IS DIVIDED IN TWO CATEGORIES

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 HCMPSUL,

Mr. H.D. REVANNA Honorable Minister is the present President of Hassan Milk producers

Co-operative Societies & KMF

2. SELECTED & ADMINISTRATION DEPT

The employees working in the organization under HCMPSUL constitute the selected body.

The qualified candidates are selected to the organization. This involves both Elected and

selected bodies. The administration deportment 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 430 employees working in all the sectors of

organization.

The head of the selected body is the Managing Director; at present Mr. B.P RANGANATH

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 Dairy.

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FUNCTIONAL DEPARTMENT

FUNCTIONAL AREAS

There are seven departments HCMPSUL viz.

Procurement and input department

production department

Administration department

Finance department

Purchase department

Marketing department

MIS department

The hierarchy of this different department is given below:

1. PROCUREMENT AND INPUT DEPARTMENT

The purchasing activities include selecting good geographical area which is well suited for

cattle and were the cattle are more in number. So that the unit can install co-operative

socites.Purchasing is a managerial activities that foes beyond the simple act of buying and

include and includes the planning and policy activities covering wide range of related and

implementary activities. The purchasing department occupies a vital and unique position in

the organization.

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MILK PROCUREMENT DEPARTMENT

Managing Director

General Manager

Manager(P I)

Deputy Manager

MIS Office Assistant

EXTN officer I/Office Superintendent

EXTN Officer II/#A/c Superintendent

EXTN Officer IIIAdmin Asst; I

Admin Asst; II #Senior Typist

Admin Asst; III #Typist

Mobile Veterinary Assistant

Helpers

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OBJECTIVES OF PROCUREMENT DEPARTMENT

To procure right material.

To procure material in right quantity

To procure right quality

To procure from right and reliable source of vendor

To procure from right and reliable Source of vendor

To procure material economically i.e. a: right or reasonable price

To receive and deliver material at right place and right guide.

MILK CANS RURAL SOCIETIES COLLECTING MILK

29

2. PRODUCTION DEPARTMENT

Managing director

Manger (dairy)

Deputy Manager

Assistant manager

T.O (DT)

Operators

Helpers

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ABBREVIATION

D.T—Dairy Technologists T.O—Technical officer

The unit of HCMPSUL consist all high technology process equipments. The process and all

mechanized with high technology machines that improve the quality of milk increased the

production capacity saves time and energy

3. ADMINISTRATION DEPARTMENT

Managing director

Deputy manager (A,D,M)

Am training

Legal officer incharge

Administrative officer

Officer

superintendent

E,S.T

Support staff

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Administration Department

HCMPSUL has an administration department that takes care and controls all other

departments of the union.

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

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

work.

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

To maintain responsible quality and quantity standards.

To provide satisfactory physical on mental environment for employees

HUMAN RESOURCE

INTRODUCTION

Human Resource is the most valuable and long lasting resource to any organization.

Manpower is an important resource, so it is very much necessary to utilize this resource in

the most effective and efficient way. If human resource is handled in a proper manner then

other resources are properly utilized. As the saying goes “Mind your man, your man will

mind all other things”.

Human resource is concerned with the people dimension in management. Since every organization

is made up of people acquiring their services, developing their skills, motivating them to higher

levels of performance and ensuring that they continue to maintain their commitment to the

organization are essential to achieving organizational objectives. This is true, regardless of the type

of organization government, business, education, health, recreation, or social action.

Human resource management is the planning; organizing, directing and controlling of the

procurement, development, compensation, integration, maintenance and social objectives are

accomplished.

Of course it is a Herculean task to maintain the human resource to keep them satisfied and take out

the work from them. Mainly the employees in HCMPSUL is classified into two categories,

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1. Technical Staff:

Includes the factory workers, supervisors, technicians and engineers.

2. Non-technical Staff:

Includes mainly the office staff.

STREGNTH

Category In Nos.

Male 369

Fe-male 45

Total 414

RECRUITMENT PROCEDURE

Recruitment takes place only on the policies framed by the Board Of Directors or by the Unions.

AGE LIMIT

Candidate must have attained the age of 18 years and not attained the age of 35 years in case of

persons belonging to schedule caste / schedule tribes. In case of other than schedule caste /

schedule tribes they should not have attained the age of 32 years as prescribed by the Government.

SELECTION COMMITEE:

President of HCMPSUL.

Managing Director of HCMPSUL.

Director of Karnataka Milk Federation.

Director of National Dairy Development Board.

Director of Registrar of Co-operative Societies.

33

LEAVE FACILITIES

Earned Leave: 30 days in a year.

Casual Leave: 15 days in a year.

Half Pay Leave: 10 days of full pay leave or 20 days of half pay leave can be availed.

MILK SUBSIDIES RATE

An employee is provided milk at subsidized rate for each employee – 250ml of milk per day at

50% of sales price between January to October and 500ml of milk with no price during November

and December.

DEARNESS ALLOWANCE

As per the Government rules and regulations.

CANTEEN FACILITY

Canteen facilities are provided to the employees at the rate of . 4 Rs per meals

OTHER FACILITIES

Hospital facilities for employees who have ESI scheme .for those who earn below 15000 salary

per month

If employee have earn above the salary of 15000 he got medical assurance upto 50,000

Rs. 750 / quarter for non-ESI scheme employees.

Hospital fees for injured employees.

TRAINING FACILITIES

For New Recruiters: On the job training up to 15 to 30 days.

Technical and Non-technical programs for Managers and for other employees in EROD

Training Centre by NDDB and Central Institute of Training, Mysore.

Training on quality techniques for Managers in Configuration of Indian Industries.

MDP programs for employees in Institute of Rural Management Academy (IRMA), Gujarat.

HRD, Marketing, Communication skill programs in Vikun Mehtha Institute of Management,

Pune.

34

Manager (finance)

Managing Director

Various workshops on different subjects to whom it is essential.

In house training – Activities that is required for Dairy

RETAIREMENT

At the age of 60.

VOULANTARY RETIREMENT SCHEME

Adopted

4. FINANCE DEPARTMENT

Assistant manager (FIN)

Accounts officers

Superintendent

Accounts assistant l

Accounts assistant ll

Accounts assistant lll

35

Helpers

Financial function is an area of financial decision making, harmonizing individual motive

and co-operative goods. It covers not only financial planning, but also optimum use of funds

as well as the financial, control. The basic functions performed are the day to day fund

management treasure management beside these the boom of accounts.The decision regarding

acquiring of plant and machinery or any capital expenditure is made on the basis of payback

period/internal rate of return net present value method. These are a cooperative organization

the ultimate decision lies in the hands of the board of direction.

Manufacturing and Trading Account for the period from 1-04-2009 to

31.03.2010

Particular 31-03-2009 31-03-2010

Opening stock 15513894.52 31865236.63

Purchase of raw material 1881083739.94 222423466.58

Proc transportation

charges

63748393.97 34622907.98

Processing &

manufacturing exp

93105497.83 98104852.22

Salary & other benefits 79882272.98 92378430.01

Gross profit 80738849.42 117758114.87

Total 2217098640.72 2628973008.29

Sale of milk products,

cattle feed & others

2172149561.29 2599625746.15

Interunits transfer 13083842.85 13414137.40

Closing stock 31865236.63 15933124.74

Total 2217098640.72 2628973008.29

36

Hassan Co-operative Production Societies Union ltd. Profit and loss A/c for

the period from 01.04.2009 to 31.03.2010

Expenses 31/03/2009 31/03/2010

Salary and other benefits 19970568.24 23094607.5

Administration exp.. 8684100.33 14975437.37

Rent, rates & taes 1090622.00 391212.00

Selling & distribution exp…. 25069314.58 29420758.23

Postage & insurance services 7790809.63 9818471.11

Investment & bank charges 1558036.25 1525678.77

Vechicales, repairs &

maintains

2779036.59 2393725.00

Depreciation 13330438.95 28326946.70

Tax & provision 5414158 10251355.00

Net profit transferred to

balance sheet

11699086.86 21020971.37

Total 97386171.43 141219163.05

Income 31/03/2009 01/04/2010

gross profit 83764841.53 117758114.87

Other income 11586460.93 20762528.01

Interest on loan and adv…. 2034868.97 2698520.17

Total 97386171.43 95077404.22

37

Hassan Co operative Production Societies Union Ltd Balance Sheet for the

period from 01/04/2009 to 31/03/2010

Capital and liabilities 31/03/2009 1/04/2010

Paid up share capital 60814000.00 7653200.00

Share suspense 1654456.01 2877959.70

Depreciation and other funds 156268990.15 170360061.81

Profit and loss account 11699086.86 21020971.37

Loans 25225155.98 21802755.98

Grand and subsidies 6479027.59 62853199.69

Current liabilities 17547956.43 135876204.74

Provisions 18054340.07 20270457.89

Bank over draft 0.00 0.00

Total 455674213.09 511593611.18

Assets 31/03/2009 31/03/2010

Cash in hand 881835.65 123278.85

Cash at bank 46344999.70 88583628.85

Investment 41820936.33 15506799.33

Fixed assets 210331884.63 246146588.50

Current Assets 89158355.64 116727413.18

Loans advances and deposits 15801.96 0.00

Sundry Debtors 22231916.27 12641852.63

Audit objection 3734352.67 3734352.67

Stock on hand 41154130.24 28129697.22

Total 455674213.09 511593611.18

38

5. PURCHASE DEPARTMENT

Managing Director

Purchase officer

AAI

Clerk

ABBREVATIONS

AA-ACCOUNT ASSISTANT

This department also play major role because the quality of milk which is procure from the

different societies should be maintained equally because 1 liter of spoil milk is enough to

spoil whole milk in the company. So the purchase department must careful while purchasing

milk.

39

6. MARKETING DEPARTMENT

Marketing is indeed an ancient art has been practiced from age-old times. But its need for

selecting even basic commodities is of recent origin. In a short period of time, marketing has

growth to such extent that it is being viewed it is most important of all the management

functions as follows.

Managing director

Manager

Hassan chickmanglore kudige

1.AM(Products)

2. AM (programmes)

3. AM (dairy doc)

4. AM (head quarters)

Marketing officers -4 M officer-4 M officer-4

Staff -4 nil staff-4

Sub-staff-2 Nil Nil

Abbreviation

Am –Assistants manager

40

MARKETING MIX OF HCMPSUL

PRODUCT

They are flooring milk in difference quantities like 500ml, 250ml; 200mland quality of the

each product is high. The brand name of the film is very attractive. The system of packing is

very safe and convey for transport purpose. The colours of the milk packets are Red and

Blue. The color of the ghee packing is yellow.

PRICE

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

competitive.

Particulars Selling price

Toned milk 1 ltr 21.00

Homogenized 1 ltr 25.00

Curds 500gm 13.00

Curds 200gm 6 .00

Butter milk 200 Ml 6.00

41

PROMOTION; SALES PROMOTION AND ADVERTISEMENT 2011TO MARCH

2012

Sl no. Activities of sales promotion Proposed details

1 cable T.V network/ AIR All seasons

2 Press and advertisement Flush /Festival season

3 Wall painting/hoarding flex Total 7000sft.area

4 Glow sign Boards 30 Nos.

5 Insulated Boxes 15 Nos.

6 Tarpaulin Bags/cash bags 300 Nos.

7 Banners 50 Nos.

8 Nandini caps 300 Nos.

9 Bottle coolers 6 Nos.

10 Tour programmer for retailers 2 Nos.

11 Opening of New parlors 9 Nos.

12 Jerkins/Umbrella/wall clock 200 Nos.

13 Dairies and calendars 200 Nos.

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)

Television

HCMPSUL supplying milk and milk products to the customers in three districts like Hassan

chikmangalure and coorg (Madikeri)

The distribution network means there is a marketing wing needed manager of marketing.

There are 18 members of distribution trucks for selling MAMP to every agent and also

collect the indent for for next day. The collected indent will be consumed by marketing staff

and will be submitted to the production section the dairy while sending the milk and its

products from the dairy security check N1 done by the security people in every shift.

42

ANNUAL MARKET PLAN FOR DEVELOPMENT ACTIVITIES FOR

THE YEAR 2011-12

Hassan co-operative milk producers societies union Ltd established 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, chikmangalure 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 2010-11. The

key strategies planned for 2011-12 are as follows

INCREASING THE AVAILIBILIITY OF NANDINI MILK THROUGH OUT THE

DAY IN THE MARKET:

1. ENHANSING EFFECTIVINESS OF CONSUMER AWARENESS PROGRAMME.

2. TEAM CONCEPT FOR MARKET DEVELOPMENT.

3. CREATION OF GRIVANCE REDRESSAL CELL

4. CONSTITUTING EFFECT VE REPLACEMENT LEAKAGE POLICY.

5. CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY PROBLEMS.

6. PROMOTING CHANNEL MEMBERS

7. ELECITING CONSUMER FEED BACK FOR QUALITY ASSURANCE.

8. SALES PROMOTION ACTIVITIES

43

1.INCREASING THE AVAILABILITY OF NANDINI MILK

THROUGHT THE DAY IN THE MARKET

By expanding the retail market in the union Area,

Introduction of an ad hoc 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.

Supply of loose milk in 40 Liters cans to hotels, choultries and institution at concessional

rates.

Identifying the uncovered areas of distribution and appointing new retailers in such areas

to expand the local market.

Introduction of Ad hoc day route exclusively for Milk products distribution in the union

area.

a) Strengthening the existing milk parlors depots and day counters

There are totally 587 retailers 17 milk parlors 14 day counters and 16 depots operating in

the union area. It is decided that 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.

b) Introduction of Toned Milk(250M) Sachet in market instead of D.T.M during

July – 2010

2 ENHANSING EFFECTIVENESS OF CON SUMER AWARENESS

PROGRAMMES

Persuade consumer 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 the organization

Quality and hygienic aspects of sachet milk and milk products

Education programmes on “Milk and Health” at Schools and public places Quality products

and services available Health hazards of consuming adulterated milk.

44

3. TEAM CONCEPT FOR MARKET DEVELOPMENT

In ordered to achieve highest sales target. It has been decided to constitute functional teams.

This team will conduct the following activities

a) Visit the market along with marketing staff for market development and to Increase sales.

b) Organize door to campaign

c) Arrange quality testing at selling point/Public

The team would visit the market at least once in a week report to the MD.

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 publisher leading local

daily News papers and circulated to all the agents’ day counters. The complaints to be

addressed immediately and would be rectified within 24 hours.

5. EFFECTIVE REPLACEMENT LEAKAGE POLICY

The following 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 Machines

Storing in required temperature before dispatch

Taking proper care during transport to avoid damage.

45

6. CONSTITUTING A CORE GROUP FOR SOLVING DAY TO DAY

PROBLEMS

A core team constituting of officers from plant, quality control, marketing and accounts have

been formed to implement the strategies of SMP for implementation. This team would sit

every day for 15 minutes with Manager and thrash out problems faced by the marketing staff.

Problems noticed and action initiates are to be recorded every day. And appraise the M.D in

week and conduct review meeting once in a month.

7. 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 rewarded.

8. ELECITING CONSUMERS FEEDBACK FOR QUALITY

ASSURANCE

By preparing a set of questionnaire and electing the fees back from the customers, will get us

information about customer’s perception on Nandini milk and milk products, Quality,

Package and pricing etc

By conducting this will get the result from the customers in case if there are any problems we

can rectify it. We can do this by putting few question to the customers asking about the

quality, price shelf life also create awareness about the quality price shelf life packing

satisfaction etc. by this we can also create awareness about the brand and get the feedback

about competitor brands also in the market.

9. SALES PROMOTION ACTIVITIES

46

Sales promotion is a marketing activity that provide extra value or incentive to sales force

distributors, and the ultimate consumers can stimulate immediate sales

a) GROUP INSURANCE SCHEME EXTENDED TO RETAILERS

The proposal of providing Group Insurance facility to retailers which is in existence during

2004-05 or a period of 3 years is continued during the present year.

b) LOOSE MILK SALES TO HOTEL CHOUTRIES / RETAILERS

It is proposed to introduce loose milk sales (toned milk and curds) Rs15/- and Rs 19/-/ILtr.

Through aluminum milk cans of 40 Ltr. And 20 Ltr. Capacity only to hoteliers and other

directly

C) Brand Advertisement. Vehicle and Wall painting Radio programmes and Awareness

programmes will be continued during 2008-09 also

D) Supplying posters, Flex Boards Glowing Boards, Tarpaulin bags etc.

PACKING TECHNOLOGY

Milk was initially sold door-to-door by the local milk man when the dairy co-operative

started branded milk it was sold in glass bottles sealed with foil over the years several

development 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

refrigerate in 1996 Tetra packs were introduced in India. Tetra packs are aseptic laminate

packs made of aluminum paper board and plastic milk stored in tetra packs and treated under

ultrs high temperatures (UHT) technique can be the dairy co-operatives in Andra Pradesh,

Tamilnadu, and Punjab and Rajastan shell milk in Tetra Packs

DISTRIBUTION CHANNEL

47

Chart showing the channels of distribution for milk and milk products

←

The milk received from different villages are weighted first with the help of weighted tank

which is having a capacity of 500 kgs. The milk is then dumped in to a dump tank with a

capacity of 10000 liters and the transferred to a chiller. The chilled milk as then sent for

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 contained and the transferred to a ghee shedding cream is removed from the

milk this milk is further tank in which the ghee is clarified and the, sent for ghee packing.

The milk with out the cream is for standardization. Where it tested for fat content SNF (solid

not fat) and purity of the milk.

This is again pasteurised 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.

7. MANAGEMENT INFORMANCE SYSTEM DEPARTMENT

AgentsDairy K.M.F Sales Depots

Milk parlorInstitutions

Consumers

Whole sale dealers

Retailers

48

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

organization, there by helps to adapt new technology in the organization.

The main activity of the MIS department in the organization is to act as the information

source for all the levels of management for the decision making in different situation hence

to say the integration of information from all the different situation hence to say the

integration of information from all the departments for the decision for the all the levels

which exist in organization such as

1. Top Level

2. Middle Level

3. Lower Level

To same appears here but here the numerical integration of data takes place in this

department.

The information from the procurement and input wing, production department, marketing

and data like the artificial insemination being done and the follow up fodder sales, target set

and the integration on monthly basis is taken up and the report is sent the managing director

and the same place before the monthly meeting held of all the milk unions at KMF,

Bangalore.

Manager

Assistants

Workers (Typist Clerks)

COMPETITORS PROFILE

49

There are many competitors viz., Milky Wave, Arokya, Jersy, Jenukal, Kaveri, JTmilk, etc

are producing similar product in same area with similar strategy. The market shares of the

above companies are shown bellow.

HASSAN CO-OPERATIVE MILK PRODUCERS UNION LIMITED, HASSAN

TOWN WISE COMPETITORS MILK SALE IN LPD FOR THE YEAR 2010-2011

sl no City/District Competitors

Brand

Place of

procurement

Milk variants Pack sizes Margin /liter Mrp Sales

in LPD

1. Hassan a. Kaveri

b. Arogya

Kunigal

Belgaum

Tonned

Homogenized

500ml

500ml

1.00

1.00

24

22

1000

500

2. Arasikere a. Jenukal

b. Arogya

Arsikere

Belgaum

Tonned

Homogenized

500ml

500ml

1.00

1.00

24

22

300

400

3. Channarayapatna a.Kaveri

b.Jersey

Kunigal Tonned

Homogenized

500ml

500ml

1.00

1.00

24

23

250

412

4. Sakleshpur a. Kunigal Kunigal Tonned 500ml 1.00 23 590

5. Belur a. Arogya

b.Kaveri

Belgaum

Kunigal

Belgaum 500ml

500ml

1.00

1.00

22

24

264

312

GRAND TOTAL 4028

PRODUCTION PROCESS

50

Start- tankers Receive raw milk in tankers after weighing after weighing in Weigh Bridge. Record the weight of milk

Pour milk to the weighing bowl & record the weight of milk collect sample for testing

Check for tanker seal

Plunging sampling

LAB TEST

LAB

test

FAT/SNF/ ACIDITY

SNF/FAT/ ACIDITY

Lab test

Lab test

Curd/ adultery ate

Sensory evaluation

Receive raw milk in Cans

Check for can seal

SEND milk for fat recovery after weighing and recording

Filter and dump the milk in dump tank

Pump the milk through chillers maintain the milk temp at <100c

Store the raw chilled milk in insulated storage tank RM Silo

51

MILK PASTUERISATION

Allow raw milk in to float balance tank

Pump milk to regeneration section-I where the milk is heated to 40-450 c

To separate for standardization of fat for TM, DTHM, & STD H.M When required.

C. Regeneration section- II where milk is heated to 60-650 c

To homogenization if required

Heated section where milk heated to 750c and heald for 15 sec record temp

Cool the milk to 5-70 c

Store the pasteurized milk insulated HMST

COB Acidity, phosphates CLIMBRT,

For packing & dispatch

Lab test

52

PRODUCTION PROCESS OF KHOVA

Whole milk

Heat desiccation

Solid Mass

Khova

Packing

Dispatch

53

Production Process of Peda

Whole milk-4.5% fat

And 8.5% SNF

Addition of sugar

Heat desiccation

Solid milk

Peda

Cooling

Moulding

Packing

54

FLOW CHART OF CURD MAKING

SWOT ANALYSIS OF HCMPSUL

Pumping of Pasteurized toned milk (Fat 3.1 % SNF 8.5 %) at 30 Deg C to Curd making tank

Transfer the curd Crates to Cold Stores ( 6-12 Deg C)

Inoculation of culture into the curd making VAT @ 0.1% and mixing

Pumping of Curds Milk in balance tank of FFS machine

Packing of innoculated Milk in pouches of 500 g and 200g through FFS Machine

Loading of Pouch into clean Crates

Storage of crates at room Temperature (40*C) until the curd sets

Analyzed for Acidity (0.65%LA)

Analyzed for Acidity & Orgaoleptic tests

Issued to FGS

Dispatch

S

55

1. STRENGTHS

HUGE DEMAND

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 IT'I~ products.

AVAILIBILITY 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.

BRAND

Nandini milk, Nandini ghee, Nandini curd etc Nandini products are well branded in the

market because of their quality.

MAN POWER

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.

2. WEAKNESS

56

INADEQUATE TRANSPORTATION

Bad condition of roads and inadequate transportation facilities makes milk plOcurement

problematic

NO DAIRY FARM

HCMPSUL has no dairy farm in its own, it becomes one of the major weakness of the

company.

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.

LIMITED ADVERTISEMENT

NO CREDIT BUSINESS

OPPORTUNITIES

EXPORTS

57

There is demand for Nandini Products in other states viz Kerala, Goa. So it can export its

product to those states along with Tamilnadu and Andrapradesh.

NEW PRODUCT INNOVATION

It can innovate new products to the exisiting product line

EMPLOYMENT

Itprovides mo re employment opportunities to the people. Currently there are 414 employees

working in the organization.

Young, enthusiastic employees put their best efforts, which results in the growth of

organization the brand; image of the firm helps it to enter new areas quickly.

4. THREATS

Market uncertainty

There is a price fluctuation in the market, it may leads to decrease the demand and there by

reduction in profit.

Competition

Competitors are coming with similar product, this is the main threat posed by the external

environment.

Many private firms have entering

Manufacturing of dairy products

MCKINSEY’S 7-S MODEL

58

Structure

Skill

Style

Strategy

System

Staff

Shared value.

SKILL

59

Skills include the distinctive competencies that reside in the organization. These can be

distinctive competencies of people, management practices, systems and technology.

The employees need to have both specific as well as generic skills. Generic skill mean

problem solving skills, decision –making skills, communication skill etc. Specific skill

means time management, shop floor management, building teams, leadership, motivation,

creativity and environment.

STYLE

This includes the Leadership style of top management and the overall operating style of the

organization. Style impacts the norms people follow and how they work and interact with

each other and with customer.

The management training is totally democratic there are no restrictions to any employee to

express his opinion. HCMPSUL has got open door policy i.e. any level of employee can

meet directly to his superior or managing director without any hesitation. This leads to the

free flow of communication within the organization.

STRATEGY

Strategy refers to the systematic action and allocation of resources to achieve the companies

aim. The company is procuring the good quality of raw materials from local suppliers, which

increases their quality of the finished goods to meet the customer expectations.The integrated

vision and direction of the company as well as the manner, in which it drives, articulate,

communicates and implements that vision and direction. It can also be defined as the choice

of direction and action that the company adopts to achieve its objectives in a competitive

situation.

SYSTEM

In HCMPSUL system is followed purely on basis of merit basis. Promotion will be given on

the basis of pure merit system. Systems are formal and informal procedures that govern

everyday activities and Finance department is doing enough to properly plan and control the

funds and they have an Oracle system in their company

STAFF

60

Supervisory Staff These are the person who is in charge with supervising the other

employees in the organization. In this company they are employing experienced staff as

supervisor. So they can observe the fellow workers and guide them as per the companies

need. The experienced supervisors are one of the key assets of this company.

Clerical Staff: These assets are responsible for the office work. These people are the back

bone of the company. If they work well, it will be an asset to the company. In this company

they are employed & qualified employees for office work. These staffs are working together

for achieving companies objectives

SHARED VALUES

It refers to the core or fundamental values that are widely shared in the organization and

serve as guiding principle that are important. These values have great meaning because they

focus attention and provide a broader sense of purpose. Values are things that you would

strive for even if they were demonstrably not profitable. Values act as an organization’s

conscience, providing guidance in time of crisis.

SUMMARY OF FINDINGS & CONCLUSION

61

FINDINGS

1. The company to know the customer want and their satisfaction with the product.

2. Consumer awareness program is not conducted in a systematic manner.

3. The advertisement in local newspaper and local television is very low.

4. Most of the consumer's complaints are been solved by the seller itself.

5. Laboratory and equipments that help detecting any adulteration or any such other defects.

HCMPSUL is serving the rural region and helping them, by way of procuring milk

through poor farmers through its formed societies and paying them fair returns. It is

contributing for economic growth of farmers.

6. HCMPSUL is even serving the society and its customer by providing better quality Milk

and milk products.

7. HCMPSUL is earning profit year after year and it is not confronting any

8. HCMPSUL is equipped with fully automatic systems which ensures total Quality

maintenance (function)

9. It has got its own quality control department with fully equipped

10. Through the use of advanced technology, HCMPSUL provides its customers bacteria

free and balance nutritious milk (product augmentation)

11. HCMPSUL provides training and education program that creates legal

12. Awareness about social and economic factors among rural people, especially women.

13. HCMPSUL even gives importance towards animal health care, artificial

14. insemination, cattle iced and fodder development (supplier relationships)

62

LEARNING EXPERIENCE

During in-plant training I had good experience in Hassan Co Operative Milk Producers

Society Union LTD., it was a great knowledge based and excellent training program in

HCMPSUL. All the staff members of HCMPSUL were co-operative and friendly in their

approach. Whenever I visited the all functional departments, the higher authority of that

particular department had allocated their precious time in explaining me each and every

activity carried in their department.

In every department whether it is a lower level or higher level the concerned, staff given me

all the necessary information whatever I required to learn. Overall it’s been a good

experience.

In the plant I had gone through various departments with interacting between the heads of

department then there only just I noted some of the aspects, which are required to me.

At HCMPSUL I came to know that there exists both formal and informal relationship.

Informal organization exists in the form of social relationship between the employees at work

place. The members of the organizational hierarchy were friendly and co-operative,

disciplined and prompt in their work. At HCMPSUL reporting relationship follows formal

channel. Both downward and upward communication follows the path of formal channel.

Finally I had a great memorable experience for me that getting experience in corporate

environment. It was a more like a practical experience rather than theoretical. It is a good

flat form for every Post Graduate management student to get practical experience in

corporate environment, and also to understand how theoratical aspects are applied in actual

workplace.

CONCLUSION

63

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 HCMPSUL 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 than those Without

The families with dairy cattle are economically better than those without dairy cattle

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.

Finally I' am very happy to say about HCMPSUL, they are succeed in the field of milk

products market. Financial Position, company inventory, cash is better. So we have to

conclude that HCMPSUL is financially growing and profitable industry.

Finally I conclude about HCMPSUL Company, coming years it has reaching their Goals, and

Targets

BIBLIOGRAPHY

64

P.SUBHA RAO, (3rdedition) Essential of Human Resource Management and In-

dustrial Relation, Himalaya Publishing House, Mumbai, 2007.

K.ASHWATHAPPA & K.SHRIDAR BHATT, (1st edition), Production and Op-

eration Management, Himalaya Publishing House, Mumbai, 2008.

P.V.KULKARNI & B.G.SATHYAPRASAD, Financial management, Himalaya

Publishing House, Mumbai, 2009.

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