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A STUDY ON BRAND IMAGE TOWARDS NANDINI PRODUCTS

1.1 INTRODUCTION ABOUT THE INTERNSHIP


This project is aimed at understanding the branding performance taken at KMF, The study
was conducted in NHPP (Nandini Hi-Tech Product Plant) located at Channarayapatna.
The NHPP produces products like- Nandini Good Life Milk, Ghee, Butter and Milk powder.
This is a hi-tech product plant, having fully automated process from scratch till the end.
Our plant follows the six sigma concept, which has led to reduction in defect up to 99%. This
will shows how organisation meet the quality control standers in the production. Branding
performance designed to focus external and internal customer expectation preventing
problems building, commitment to quality in the workforce and promoting to open decision
making.
This study focuses on the finding the awareness of branding among the employees. Study
also focuses on knowing the extent to which the quality aspects followed inside the plant.
1.2 TOPIC CHOOSEN FOR STUDY:
This project has been done on a topic
A Study on Brand Image towards Nandini Products

1.3 NEED FOR STUDY:


Nandini Hi-Tech product plant, a branch of KMF is the new company in the south Karnataka
region in the packaged milk & milk products segment. The company is leader in this segment
with its various products under the brand of Nandini.
The company has made the attempt to increase the sales through many promotional activities
like advertisements through various medias & campaigns along with this it is using many
branding & techniques in production stage to improve the purity of its products to attract the
customers for a long time.
1.4 OBJECTIVES OF STUDY:

1.5 SCOPE OF STUDY:


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The main purpose of the study is to identify the awareness the branding system and sales
promotion program adopted by various producers engaged in the production of milk product
and in specific relation to Nandini products.
In order to know brand awareness of Nandini milk and its milk products.
To study the reach of branding system and sales promotion programme of Nandini products
among the customer in Karnataka state.

1.6 METHODOLOGY ADOPTED:


Sample:
The organization employee were taken as a sample for the research. Representation from all
the departments were taken into consideration.
Sample Size:
The sample size of 100 were taken randomly for the research. Here also the representation
from all the departments were followed.
Primary Data:

The responses of the employees regarding their opinions on brand awareness and quality

aspects followed NHPP is the primary data for the research.


The employee of all the departments were the source to extract the primary data.
The primary data was collected through questionnaire and observation.
The data was collected in NHPP plant located at Channarayapattna.
Secondary Data:

The complete information about the organization and information on marketing department

followed in NHPP were considered as secondary data.


NHPP website, NDDB Website, KMF website, Old research reports, NHPP Prospects,

Articles published in internet, newspaper were taken as a source for secondary data
The secondary data was collected through internet and collected the materials from the

relevant source
The old research reports and prospects were collected from NHPP Channarayapatna

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A STUDY ON BRAND IMAGE TOWARDS NANDINI PRODUCTS

Type of research:
This research is a combination of exploratory and descriptive research methods

Analysis tools:
The Graphs and tabulations generated from Microsoft Excel and Hypothesis testing through
SPSS Software

1.7 Literature review


1) Keller and Lehmann: Branding and brand management has clearly become an important
management priority for all types of organizations.
2) The American Marketing Associations (AMA) 2008 definition of the brand as a name,
term, sign, symbol, or design or a combination of them intended to identify the goods and
services of one seller or group of sellers and to differentiate them from those of competitors.
3) Kotler and Armstrong, 2007 AMA definition is the one still cited today, instead of the
more recent, shorter but conceptually equivalent version that is currently found in the online
Dictionary of Marketing Terms available on the AMA website: a name, term, design, symbol
or any other feature that identifies one sellers good or service as distinct from those of other
sellers
4) Kapferer (2008) remarks, two brand equity paradigms do exist: the first is customeroriented, is based on the relationships consumers have with the brands they buy, from
indifference to attachment, and focuses on the consequent relative strength of the brand.
5) Chu and Keh, 2006, second brand equity paradigm is concerned with the brands
financial value, as a separable asset. To these two approaches, adds a third interpretation of
brand equity as description of the associations and beliefs.
6)According to DOUGLAS B.MOLT Branding has become one of the most important
aspects of business strategy. Yet it is also one of the most misunderstood. Branding is
sometimes considered to be merely an advertising function.
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7).Dr Jane Leighton 2006 The key findings from this research demonstrate the important
effects branding has on consumer attention and memory. Given the significance of these
psychological processes in decision making and consumer behaviour.
8).McAdam and Leonard 2003 maintaining customer loyalty; maximizing investment that
would be placed in CSR regardless of the brand; and avoiding conflict with shareholders.
9) (McAdam and Leonard 2003). Brand building towards social values relates to
CSR(corporate social responsibility) in both ways. Given that brand building is strategic, and
according to strategy the brand must reflect the values of a firm.
10)Maurice Patterson: The acknowledges that brands possess meanings above and beyond
those of a functional nature, and accepts product the notion that we us.
11)Harvard Business Review: In a consumer society, brands become part of the nonverbal
language of social communication

1.8 Limitations of the study:


As per my research bellow some of limitation I had experienced

The data was collected through informal and unscheduled interactions, so there is a

chance of information error.


Lack of co-operation from the workers in all departments due to their work load.
Time constraints, it is unable to take the considerably big sample size for the reaserch.
The source for the secondary data was less

Chapter 2`
2.1 INDUSTRY PROFILE:

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On considering the diary industry in India has developed and developing as large industry
and as per the certification of the International Dairy Industry India is the worlds largest
milk producer and large numbers of industries are engaged in routine commercial
production of pasteurized milk and milk products.
Origin of the Milk Industry:
Milk is the natures idea of food for infants and growing children in our country, except in
rare cases of lactose intolerance. The importance of milk occupies in our diet has been
recognized since Vedic time, and all modern research has only supported and reinforced this
view. In fact, milk is now considered not only desirable but very much essential to person
from his childhood.
In early days the household have to produce their milk by maintaining their family cows or
buffalos or they should secure from their neighbors. As the urbanization develops only few
households are able to keep a cow for private use. The high production cost, problem of
sanitation etc.., restricted the practice, gradually the family cow in the city was eliminated
and cattle were sent back to the rural areas, as a result farmers began to deliver milk over
routs in the cities. This was the beginning of the fluid milk sheds which are surrounding the
large cities now a day.
Dairy is a place where processing of milk and production of milk products is done and
technology refers to the application of scientific knowledge for practical purpose. Dairy
technology has been defined as that branch of dairy since, which deals with the processing of
milk and the manufacture of milk products on an industrial scale.
Dairy in INDIA:
Dairy enterprise is an important occupation of former. In INDIA nearly 70% of the people
depend on Agriculture. It is the back bone of INDIA. Dairy is linked with Agricultural
Industry to a large extent. Animal husbandry in INDIA is an essential part husbandry. It is
mainly a rural occupation closely associated with Agricultural.
In INDIA, dairying has been practiced has a rural cottage Industry since the remote part.
Semi-commercial dairying started with the establishment of military dairy forms & cooperative milk unions throughout the country towards the end of 19 th century. Dairying the

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earlier year, each household in those countries maintained its family cow or secured milk
from its neighbour 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 practices, & gradually
the family row in the city was eliminated & 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 & production factories have since been established. These organized
dairies have been successfully engaged in the routine commercial production of pasteurized
bottled milk & various western & Indian dairy products.
With modern knowledge of the protection of milk during transportation, it become possible to
locate dairies where land was less expensive & crops could be grown more economically.
In INDIA, the market milk technology may be considered to have commenced in 1950 with
the functioning of the central dairy of Aarey milk colony, milk product technology in 1956
with the establishment of AMUL dairy, Anand.
National Dairy Development Board
Introduction:
The government of India constituted the National Dairy Development Board in the year
1965 Shri: - LalbahadurShastry initiated the setting up of NDDB. The board is registered
under the societys registration act and public trust at the head office is at Anand and is
organization in to 9 functional divisions.
Objectives of National Dairy Development Board
To sponsor, promote, manage, acquire, construct control any plant or work which promotes
or advances the projects of general public utility reactions to dairying.
1.

To make available on request, information services to increase production


development to release to production and marketing of agricultural and food products.

2.

To provide international liaison with other national dairy boards and international
agencies in order to facilitate exchange of information and personnel as well as to assist in
development of dairying in other countries.

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MILK PRODUCTION IN INDIA


The bulk of the milk supply of the country is produced in rural areas. It has been estimated
that only 4 per cent of milk cows and less than 61per cent of milk buffaloes are kept in towns
and cities. U.P. is the largest producer of milk followed by Punjab, Bihar, Andhra Pradesh and
Rajasthan. M.P. and Orissa, account for low production.
Table 3.2: Production of Milk in India (1000 Tones)

Year

Cow milk

Buffalo milk

Goat milk

2004-05

Total

14,895

22,325

1,488

51,408

2005-06

22,240

28,675

2,381

53,938

2006-07

27,679

34,903

2,707

65,289

2007-08

27,832

35,692

2,973

66,497

2008-09

31,546

40,122

3,032

74,700

2009-10

33,046

41,622

3,432

78,100

2010-11

34,920

44,051

4,365

83,336

2011-12

35,600

46,254

4,658

86,512

2012-13

38,520

47,120

4,942

90,582

2.2 COMPANY PROFILE

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The milk procurement by the co-operatives in Karnataka has steadily increased over the years
due to the efforts and policies favouring milk production. Existing infrastructure of the milk
co-operatives in the state was found to be insufficient for handling the excess milk.
In order to meet the increased processing requirement, Karnataka Milk Federation (KMF), in
consultation with National Dairy Development (NDDB), conceived to setup a product dairy
of 400 TLPD with 30 MTPD powder plant in the year 2005. It was decided to set up the plant
at Channarayapatna, Hassan Dist (Karnataka), a strategic location to handle the surplus milk
of Hassan, Mandya, Mysore and Tumkur milk unions.
Nature of the business carried:
Nandini Hi-Tech Product Plant is one of the division of KMF at Chennarayapatna. This
division is engaged in the manufacturing of 4 milk products i.e. Butter, Ghee, Milk powder &
Good life milk.
Plant follows best manufacturing practice & meets regulatory & safety requirements. To
promote sustainability development within the organization & community through good
ethical business practice. To be competitive responsiveness & continuously improve services
so as to ensure total customer satisfaction.
Installation of Nandini UHT Milk Processing and packing facility of 1,00,000Ltrs/ Day
Capacity.
Includes facility for packing Nandini UHT milk in 500 ML, 200 ML Fino and 200 ML Fino
and 100 ML Fino packs.(started from Jan12)
Includes facility for packing Nandini Flavoured Milk in 200 ML Packs.
This Project is aimed to address ever growing Market demand of Nandini UHT Milk.
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Processing capacity:

Milk processing:400TLPD(1000 liters/day)


Milk powder production:30MTPD(Metric tons/day)
Butter production:21MTPD
Ghee production:5MTPD
UHT milk processing & packing:1LLPD(Lakh liter/day)
2.3 Promoters, Vision, Mission & Quality Policy
Promoters:

Government of Karnataka
Director of NHPP Govindegowda and co-directors
Employees of the organization
Formers

VISION:
To be the leading producer of milk products by introducing advanced quality enhancement
techniques. To provide fresh quality products & competitive prices & there by uplifting the
financial position of the rural milk producers.
MISSION:
The mission is to become a leading concern in the milk products manufacturing, by
implementing modern machinery & equipments & to provide quality milk products to the
customers.
QUALITY POLICY:

Deliver products & service. And Meeting customer requirements.


Develop environmentally sound products, process & health conserve resources.
Company with statutory & regulatory requirements relevant to the product service

environment health & safety.


Meet the requirements of our valued customers through manufacture & supply of milk

products.
Milk & milk products adopting scientific methods & linear programmed formulations.
Improve our performance thereby enhancing satisfactions of our customers.

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2.4 PRODUCT PROFILE


There are four types of products produced by NHPP:
1. Tetra pack (good life)
2. Butter
3. Ghee
4. Skim milk powder and Whole milk powder.
1. Tetra pack(good life):
Cows pure milk, UHT processed, bacteria free in a tamper- proof tetra pack which keeps this
milk fresh for 90 days without refrigeration until opened. It is available in 500ml 200ml and
100mlat premium store across the country.On April 03, 2014 - GOODLIFE SALES TOUCHED
5.3LLpd, all time high.

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2. Butter:
Butter serves as the balance wheel of the dairy industry; surplus milk is converted into butter,
while during times of scarcity the milk intended for butter making is used for more essential
products. It is obtained by churning cream, gathering the fat into a compact mass and then
working it. It is available in 25kg paper board and stored at -20c for 12 months from the date
of manufacturing.

3. Ghee:
It is the product obtained from surplus fat, prepared from butter .It is Packed in 15kg tin
packs respectively. And in tanker it will be sent for Thirumala. Firstly license is obtained after
which special grading is given then it is packed.
Ghee packet

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4.

Skim milk powder:

Milk powder is made from pure milk; processed and packed hygienically .It is available in
25kg craft paper bags and can be stored at room temperature for 1 year.
Milk powder packet:

Price table:
PRODUCTS

QUANTITY

PRICE(in Rs)

GOOD LIFE MILK

100 ml

200ml

10

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500ml

22

BUTTER

25 kg (bulk)

4845

GHEE

25 kg (bulk)

6075

SKIMMED

MILK 25 kg (bulk)

4523.50

POWDER
WHOLE MILK POWDER

1 kg (KSHIRA BAGYA As per Govt standard


SCHEME FROM GOVT)

2.5 Areas of operation:


Nandini Hi-Tech Product Plant is set up in a 22 Acres of land, beside National Highway NH48 (Banglore-Manglore) at Shettyhalli, C.R.P, Hassan-District, and Karnataka-573 116.
Suppliers of the raw milk:
o
o
o
o

HAMUL
MYMUL
TUMUL
MANMUL

Consumers of NHPP:
The products of NHPP are distributed in out of states like, Andhra Pradesh,Tamilnadu & also
supplied to Hubli& Mangalore.
2.6 Infrastructural facilities:
Infrastructural facilities of Nandini hi-tech plant in Shettihally, Channarayapatna are as
follows
MILK PROCUREMENT

Milk collection fanners


Dairy co-operative society

TRANSPORTATION

They have procurement group contract vehicles.

Eg; milk tankers,


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MILK PROCESSING

Raw milk reception dock


Cream separators
Milk pastures
Stored tanks
Electronic milk tester and milk scan

PACKAGING

GOOD LIFE Milk packaging machine


Flavoured milk packaging machine
Ghee packaging machine
Nandini Milk powder
Nandini Butter

ENGINEERING

Reformation equipments
Boiler equipments
Effluent treatment plants
Electronic generation

MARKETING

Distribution network
Agents
Parlours

DISTRIBUTION AND TRANSPORTATION

Trucks
Auto
Mobile van

OTHER FACILITIES ARE

Security canteen facilities


Shift facilities- 3 shift per day
Heat allowance
Cold allowance
Production block

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Administration block
Fuelling point
Garage block
Workers amenities
Substation
Tank reception unit

Functions of the production department


Collection of raw milk from different sources
Testing the received milk for quality
Weighing
Processing
Pasteurization
Storing milk and
Packing milk packing
Processing Capacity:

Milk processing: 400 TLPD


Milk powder Production: 30 MTPD
Butter Production: 21 MTPD
Ghee Production : 5 MTPD

Installation of Nandini UHT Milk Processing and packing facility of 1,00,000Ltrs/

Day Capacity.
Includes facility for packing Nandini UHT milk in 500 ML, 200 ML Fino and 200

ML Brick packs.Fino and 100 ML Fino packs.(started from Jan12)


Includes facility for packing Nandini Flavoured Milk in 200 ML Packs.
This Project is aimed to address ever growing Market demand of Nandini UHT Milk.

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MILK RECEPTION AND STORAGE


Two tanker reception bays with a maximum capacity of 30,000ltr per hour are provided. It
will be weighed and laboratory tested to check temperature, PH, %SNF, %Fat and Acidity.
Tanker will be weighed at electronic weigh bridge (40 tons). Installed at the entrance gate.
Recorded weighments are subsequently transmitted to the central control room. After
automatically agitating the milk for lab testing to confirm to the requirements of temperature,
fat%, SNF%, acidity, ph.
If the quality of the milk is found acceptable the tanker is taken for unloading. The lab test
reports are also transmitted to the central control room. Unloading of the tanker is done by
connecting the hose pipe to the tanker valve. Raw milk flows through the stain less steel
desecration vessel and inline disc type strainer and is pumped by a sanitary centrifugal pump.
Two milk processing lines each of capacity of 20,000ltr per hour is provided. The raw milk
from RMS undergoes processes like pasteurization and cream separation in the section.
The system is designed for a 93% thermal regeneration capacity of the pasteurizer. And
production of cream of 40% fat. The pasteurized skim milk can be stored in any 3 no. of
pasteurized milk silos each of 1lakh capacity

MILK RECEPTION IN TANKER:


.

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Milkstoragesilo

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Work flow model:

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2.7 Competitors Information:


(a)For Good life milkNestle a+ milk, AMUL TAAZA, Britannia, etc..

(b)For Butter
Nestle

(c) For Ghee


NOVA pure Ghee, Nestle Every day, Vijay Ghee, AMUL Pure Ghee, Cosmovedascocos
Ghee (Bio), etc..

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(d)For milk powder- Nestle NIDO, Organic valley, Millac, Infant dry milk, etc.

Another competitors are Dodla milk &Arokya milk.

2.8 SWOT ANALYSIS


SWOT is an abbreviation of four terms that is Strength, Weakness, Opportunities, and
Threats. SWOT analysis is good for analyzingan company and also it is a tool for auditing an
company and its environment. This analysis will give a cross section of the company. It is the
first stage of planning and helps marketers to focus on key issues.

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STRENGTH:

Nandini enjoys good brand image.


Nandini is a large procurement base.
K.M.F is the huge infrastructure for processing.
KMF has the Competitive prices.
Nandini Product dairies different range of product.
K.M.F has wide distribution network leads to regular and timely supply.
K.M.F enjoys highest market shares in the packed milk segment.

WEAKNESS:

Perishable commodity.
Lack of professional man power.
Bureaucratic method of functions.
Due to bad smell that persist causes low sales.

OPPORTUNITIES:

Huge market demand.


There is scope for developing in new area.
Availability of buffalo milk-Improves market milk quality.
Predominant of loose milk segment divide appropriate strategies.

THREATS:

Increase of competitors milk vendors, unorganised sector.


Flexibility in commission structure.
No entry barriers for private players.
Low level of consumer awareness.
Persuade benefits of competing brand.

2.9 Future growth & prospectus:

Export the product.


Introduce sterilizes flavour milk.
Dairy weightiness.

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Introduce value added product.

2.10 FINANCIAL STATEMENT:


Nandini hi tech product plant 2013-14
Unit of KMF ltd Shettyhalli
janivar post
Channarayapatna
Hassan-573116
KST no. 9070006/DT 19.08.1998
PAN NO AAAAK 1110G, ST NO AAAAK 1110G/ST-001
CST NO: 90750068, E-MAIL Mpp-crp@yahoo
BALANCE SHEET AS ON 31/3/2014
LIABILITIE

1/4/2013

31/3/2014

Capital

to 1/4/2013

to ASSETS

31/3/2014

1/4/2013
31/3/2014

Fixed assets
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to 1/4/2013

to

31/3/2014
74,80,72,517.76
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A STUDY ON BRAND IMAGE TOWARDS NANDINI PRODUCTS

account
Loan

43,12,83,189.00 Fixed

assets 76,11,05,236.00

(liability)

powder plant

Prospect new 38,54,49,500.00

Fixed

8%

UHT plant

Loan

from 4,58,33,689.00

assets 10,34,25,493.00

Tetra pack plant 5,94,48,072.00

TPIL

and machinery

Current

Depreciation

reserve

17,59,06,283.24

2,56,68,664.50

liabilities
Sundry

1,58,99,650.50

Current assets

12,06,07,797.26

creditors
EMD

and 9,11,057.00

Closing stock

9,83,19,325.68

Deposits( assets

26,84,340.00

security
deposits
Other liability 89,494.00

)
Outstanding

85,46,541.00

liabilities
Salary

Loans

and 2508.00

advances(assets)
2,21,922.00

Sundry debtors

84,04,693.57

Cash in hand

10.079.00

recoveries

Branch

41,83,77,383.60 Bank accounts

74,64,951.01

/divisions
Bangalore

1511.00

Staff advances

3.19,900.00

ADV to NDDB

34,02,000.00

sales deposit
Bellary sales -2691687.68
deposit
Central

331.00

P & L A/C

66,48,922.08

training
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institute
Gulbarga

70936.00

Opening stock

89,96,889.40

94195.21

Current period

66,48,922.08

Less:transferd

8996889.40

dairy
Gulbarga
sales deposit
Hubli

sales -369911.87

deposit
KMF central 42,14,24,141.09
office A/C
Manglore

44,259.27

sales deposit
Mysore sales -8000.00
deposit
Total

87,53,29,237.10 Total

87,53,29,237.10

Nandini hi-tech product plant 2012-13


Unit of KMF Ltd shettyhalli
Janivar post
channarayapatana
Hassan dist-573116
KST NO AAAA K1110G, ST NO AAAAK 1110G/ST-001
TIN NO:-29710050983, CST NO:-907
BALANCE SHEET AS ON 31/3/2013:
LIABILITIES

1/4/2012
31/3/2013

to 1/4/2012

to ASSETS

31/3/2013

BGS INSTITUTE OF TECHNOLOGY, BG NAGAR

1/4/2012
31/3/2013

to 1/4/2012
31/3/2013

Page 25

to

A STUDY ON BRAND IMAGE TOWARDS NANDINI PRODUCTS

Capital account

Fixed assets

77,04,42,179.2
0

Loans(liabilities)

49,90,67,683. Fixed
00

Secured loans
Loan from TPIL

assets 8,80,36,622.00

UHT plant

44,69,74,875.0

Powder

plant 75,98,55,377.0

assets

5,20,92,808.00

Tetra pack plant 5,76,31,852.00

and machinery
Current

2,17,75,895.6 Depreciation

liabilities

13,50,81,671.8

reserve

0
Duties and taxes

37,522.12

Current assets

7,28,04,631.65

Sundry creditors

26,18,477.50

Deposits(assets)

26,77,470.00

EMD

and 6,51,307.00

Loans

security deposit
Other liabilities

and 1,60,65,203.00

advances(assets)
96,236.00

Sundry debtors

1,89,17,483.58

Outstanding

1,83,72,353.00

Cash in hand

52,569.00

liabilities
Branch

34,36,87,903. Bank accounts

/divisions

15

Cattle feed plant -5,77,425.00

Staff advances

1.23,43,523.10
66,500.00

Hassan O/S
Central training 331.00

Profit and loss

institute

A/C

Gulbarga

89,96,889.40

sales 471.43

Opening balance 3,40,57,032.00

sales -2,37,119.29

Current period

89,96,889.40

central 34,56,38,788.8

Less:-transfered

3,40,57,032.00

deposit
Hubli
depo*sit
KMF

office A/C

BGS INSTITUTE OF TECHNOLOGY, BG NAGAR

Page 26

A STUDY ON BRAND IMAGE TOWARDS NANDINI PRODUCTS

Mangalore sales -5.06,348.03


deposit
Other dairy A/C
Mysore

-1694.00

sales -629,101.80

deposit

86,45,31,481.

86,45,31,481.7

77

BGS INSTITUTE OF TECHNOLOGY, BG NAGAR

Page 27

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