Banfalore Dairy Report Final
Banfalore Dairy Report Final
Banfalore Dairy Report Final
To Bangalore Milk
Dairy
On 07-11-2008
SUBMITTED BY
ASHISH KUMAR
AVIRAL
MURARKA
CHANDRA
SHEKAR
CHARNEET
BHAMRA
CHHAYA MAHIPAL
D V SILPA
Objectives of kmf:
BACKGROUND
On January 1st 1958 a pilot scheme under Department of
Animal Husbandry, Government of Karnataka was started
to cater Veterinary Hospitals & Milk process facilities at
National Dairy Research Institute (NDRI). In 1962 the
Bangalore Milk Supply Scheme came into existence as an
independent body. Bangalore Dairy, a joint venture of
UNICEF, Government of India & Government of Mysore
was dedicated to the people of Karnataka on 23rd
January 1965 by the then Hon’ble Prime Minister Late Sri
Lal Bahadhur Shastri. Bangalore Dairy scattering over an
area of 52 acres, the Dairy had an initial capacity to
process 50,000 liters of milk per day. This Dairy was
handed over to Karnataka Dairy Development
Corporation (KDDC) in December 1975 as a part of Rural
Milk Scheme of Mysore, Hassan & Kudige under Operation
Flood-II and then transferred to Karnataka Milk Federation
(KMF) in May 1984 as a successor of KDDC. To cater to
the growing demand for milk by the consumers of
Bangalore City, the capacity was increased to 1.5 lakh
liters per day under the Operation Flood-II during 1981
and later increased to 3.5 lakh liters per day under
Operation Flood-II during 1994.
As per the policies of the National Dairy Development
Board (NDDB), Bangalore Dairy was handed over to
Bangalore Milk Union (Bamul) on 1st September 1988.
The Union is capable of processing the entire milk
procured, by timely implementation of several
infrastructure projects like commissioning of Mega Dairy,
new chilling centers & renovation of product block. Bamul
has been registered under MMPO by Central Registration
Authority. Today, the Union has become biggest Milk Co-
operative Union in Southern India. Bamul has been
certified for ISO 9001-2000 and HACCP (IS-15000) for
quality management and Food Safety Systems, and also
got a National Productivity Award Thrice.
Village level
Chilling centre
Reception dock
Reception dock is the place where the milk is brought to
the mega dairy in tankers which will be weighed by
computers where its capacity depends from 9000 to
16000 liters. after the tankers is arrived each container
will be sealed with specific numbers which are tamper
proof. The Bangalore dairy has chilling center were the
temperature is below 4c the biggest chilling centre is at
hoskote with a capacity of 1.5 lakh litre.
To avoid spoilage of milk the test for acidity, fatcontent,
milk is chilled between-40 c -60c thickness is found out by
lactometer.
Snf >soilds non fat
The test for snf is done by using the formula
Snf=clr/m+0.25 fnt+0.35
Pasteurization is a process where the milk is heated to a
extent and then chilled. Here in Bangalore dairy there
are, 3 pasteurisers which heat the milk to 740c and then
chill it to -350c for a period of 40 seconds in order to avoid
lacto bacillus bacteria. It is the bacteria which results in
curding. Here there are 3 cream separators which has
been installed in the year 2000. Which costs around rs
1.44 crores . before the year 2000 the work of it was
done manually. The main work of this german separator
is that it removes dust and dry cells. There is also another
machine working here called as the milko scanners which
costs around rs.30 lakhs which is used to test for protein
fats and acids. After all the above stated process is
finished the milk is finally packed in packets of quantities
which is fully done by machines which loads the milk
seals it. Alongwith sealing it also seals the date on which
it is sealed. It is done with the help of 52 computer
automatically controlled machines.
ORGANISAITON STATUS
MILK PROCUREMENT
The operational efficiency is reflected on procurement
prices paid to the member producers. Bamul is offering
the most remunerative milk procurement price to
member producers. Annual average Milk Procurement for
the year 2003-04 is 5.94 lakh liters per day. During the
flush season it has procured to the peak of 6.80 lakh liters
per day. The average milk procurement price paid during
the year was Rs. 9.40 for every Liter of Milk supplied to
the Union.
Expenditure Incurring per Ltr. of Milk
Milk Pur72%, Transport4%, Process5%, Packing3%, Ret.
Margin3%, Sal & Admin6%, Int & Bank Chrgs2%,Misc5%
Standardization:-
It is a process of standardizing milk, which includes
continuous separation of raw milk into cream and
skimmed milk and immediate, continuous re-blending of
a portion of the cream with the skimmed milk to provide
blended milk, while the remainder of the cream is
recovered as a by product.
Separation:-
MILK MARKETING
The Bangalore Milk Union is marketing milk and milk
products in the brand name of “Nandini” through 942
retailers, 41 Franchisee Outlets, 19 Milk Parlors, 6 Whole
sale Dealers, 7 Transporter Cum Distributors and 8 Day
counters being served by 131 distribution routes. The key
success factor of Bamul in becoming a market leader is
the narrow price spread maintained between purchase &
sales, marketing higher volumes of milk. The volume of
sales plays a critical role in determining costs. Hence, the
market strategy of Bangalore Milk Union is to regard
selling of market milk as its core marketing activity and
to concentrate its efforts in this direction to increase the
volume of milk sales. The impressive growth in the sale of
milk by Bamul over the years is due to the persistent
efforts to maintain timely supply, maintaining quality and
attending to the complaints of consumers and agents
with prompt follow-up action.
The strategy of Bangalore Milk Union is “Procure More,
Sell More & Serve More” and reaping the benefits of
economies of scale. In order to realize this strategy, the
Union has implemented the following projects so that
more and more milk can be procured and processed. This
will help us to serve our producer members by passing on
the maximum benefits; we are consciously adopting the
growth-oriented strategy of helping our producers to
grow by ourselves growing constantly.
Although Bamul sets high standards for its products and
customer serve, its prior reliance on manual operations
made it impossible to keep with surging demand. In
designing mega dairy, Bamul looked towards an
automated system that would allow it to achieve
consistent quality parameters for each product. Energy
and manpower would also be more effectively optimized
and controlled and all plant equipment would be
integrated. In addition, employees would be trained in
how to use the new automated systems and valuable
management information would be collected at the main
server and used for marketing and evaluations.
Milk quality is immediately checked for quality
parameters upon arrival at the plant’s main gate. From
this point onward, each operation is automated with
controls for chilling, milk pasteurization, standardization
and cleaning-in-place (CIP). The system also gathers and
distributes data for production, quality and energy
management. At the heart of the system is a reputed
Allen-Bradley PLC-5/80C platform, which communicates
to analog and digital I/O on control Net a producer-
consumer communication network. Customers are also
seeking significant benefits. Milk now reaches market
faster, at a better quality and with a longer shelf life.
Mega Dairy with a capacity to process 6 lakh liters of milk
per day has been built by investing Rs. 38.70 crores
obtained as term loan from National Dairy Development
Board. The Mega Dairy has latest state-of-the-art
technological facilities in dairy processing and the Union
will have the ability to manufacture milk and milk
products to world class standards.
Apart from the existing SIX Chilling Centers Bamul is also
going to commission one more chilling center at
Kanakapura shortly with a chilling capacity of 50,000
Liters per day.
FINANCE
The Union has achieved a record turnover of Rs. 278.74
crores in the year 2003-04 as against Rs. 253.23 Crores
for the year 2002-03. Union has earned a Net profit of Rs.
3.81 Crores for the year 2003-04 as against Rs. 2.29
Crores during 2002-03. This improvement in Net Profit is
achieved due to improvement in managerial efficiency,
energy management, market development and quality
excellence.
Particular 1999- 2000- 2001- 2002- 2003-2004
s 2000 2001 2002 2003
Net sales 21415. 22072. 23223. 25332. 278737.50
51 93 42 20
Milk& 16256. 16695. 16645. 17760. 19858.53
products 48 67 43 38
purchase
Automation solution saves Bangalore Milk Union, Ltd.
US$444,000 annually and speeds time to market
Rockwell Automation’s Global Manufacturing Solutions
delivers increased resource and utility efficiencies for
newIndian dairy plant.