A REPORT

ONINDUSTRIAL VISIT AT

DUDHSAGAR DAIRY, MEHASANA

Programme: M.B.A 1st semAcademic Year: 2010 – 2011Subject: Practical StudiesDuration: 13-10-2010 on 12:30 pm

SUBMITTEDBY

Names of StdentMBA1stDivision

Roll No.

PAREKH BHAVIN BHARATBHAI A 29

SUBMITTEDTO

IMAGE COLLEGE

SARASWATI INSTITUTE OF MANAGEMENT STUDIESAT & PO : Rajpur, TA: Kadi,

Dist. Mehsana, Gujarat, India.

SARASWATI INSTITUTE OF MANAGEMENT STUDIES,

CERTIFICATE

This is to certify that Mr. PAREKH BHAVIN B of MBA1st SEM,

Division: A , Roll No: 29 , has satisfactorily completed his

Report in partial fulfillment of the requirement for the Subject:

Practical Studies in the academic year 2010-11.

Signature of Coordinator

Signature of Principal

College Stamp

SARASWATI INSTITUTE OF MANAGEMENT STUDIESAT & PO : Rajpur, TA: Kadi,

Dist. Mehsana, Gujarat, India

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PREFACE

This Report has been prepared in partial fulfillment of the requirement for the

Subject: Practical Studies of the MBA1st SEM Programme in the academic year

2010-11.

For preparing the Report, I have visited the company during the suggested in 13-10-

2010, to avail the necessary information. The blend of learning and knowledge

acquired during my practical studies at the company is presented in this Project

Report.

The rationale behind visiting the company and preparing the Project Report is to

study the evolution of the company, its development, its strategies and its functional

departments like production department, marketing department, human resource

department and financial department.

The Report starts with the basic general information of the company and covers the

information regarding its functional departments like production department,

marketing department, human resource department and financial department.

The information presented in this Report is obtained from sources like Company

Personnel, Company Websites, Other Websites, Company Reports, and Other

Literature.

Names of Student PAREKH BHAVIN B

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ACKNOWLEDGEMENT

It was indeed an opportunity for me to visit DUDHSAGAR DAIRY, MEHASANA and

prepare a Report on the same during MBA 1ST SEM Programme. During my visit to

the company for preparing this Report, I learnt many interesting things about the

company, along with the aspects of industry as a whole.

Preparation of such kind of report, which is based on secondary information, requires

data gathering from many sources like Company Personnel, Company Websites,

Other Websites, Company Reports, and Other Literature.

I am thankful to Mr. M.N.BAXI, who permitted me to visit the company and allowed

me to prepare the Report. I am also thankful to the Departmental Heads of the

company, who provided me the required information. Moreover I thank all those who

supported me directly or indirectly in preparing this Report, without whose

assistance, preparing this Report might have been much difficult for me.

I would like to express my gratitude to THOMAS SIR & Miss TANVI FALDU

(Coordinator) and other faculty members of the college for their valuable guidance

and help in preparation of this Report. At last but not least, I am thankful to all my

friends and other people, who helped me in preparation of this Report.

PAREKH BHAVIN B

Names of Student

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Table of Contents

PARTICULARS Pg. No.

1. PREFEACE 7

2. ACKNOWLEDEGEMENT 8

3. EXECUTIVE SUMMARY 11

4. GENERAL INFORMATION 12-19

4.1 Introduction 13

4.2 Company profile 14

4.3 History & development 15

4.4 Vision & mission 17

4.5 Organization chart 18

5. PRODUCTION DEPARTMENT 20-36

5.1 Organization structure 21

5.2 Basic products 22

5.3 Main products 24

5.4 Technical specification of product 25

5.5 Production process chart 26

5.6 Raw material 35

5.7 Quality management 35

6. HUMAN RESOURCE DEPARTMENT 37-43

6.1 Introduction 38

6.2 Organization structure 38

6.3 Working time schedule 39

6.4 Recruitment & selection 40

6.5 Recreation facility 41

6.6 Training & development 42

6.7 Performance appraisal 43

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7 FINANCE DEPARTMENT 44-54

7.1 Introduction 45

7.2 Organization structure 45

7.3 Capital structure 46

7.4 Account department 47

7.5 Trading & profit & loss account 49

7.6 Ratio analysis 51

8 MARKETING DEPARTMENT 55-62

8.1 Introduction 56

8.2 Distribution network 57

8.3 Market segmentation 58

8.4 Advertising 59

8.5 Competitors 62

9 SWOT ANALYSIS 63

10 CONCLUSION 64

11 BIBLIOGRAPHY 65

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EXECUTIVE SUMMARY

Dudhsagar dairy is one of the largest dairy and it is connected with G.C.M.M.F. it is the most

popular unit in G.C.M.M.F. Dudhsagar dairy is not only largest but also no.1 in the Asia. Dudhsagar

dairy had established on 2nd April 1963.

Dudhsagar dairy has produced more than 16 lacks liter milk per day. Its production

department is a vary large. Under production department, there have many sub-departments like as

powder department, ghee department milk department & butter department. In each department more

then 300 to 400 workers are worked. Dudhsagar dairy has appointed one manager on each

department. Its production technique is modern; all the machines are technically controlled. Its

production is sol out not only in local area but also exported in world wide. Dudhsagar dairy has

received milk all the local area and 4 cities that is Kheralu, Vihar, Kadi, Osapur.

Dudhsagar dairies market is so wide, because of its work under G.C.M.M.F its market has

expanded on national & international arena. Its marketing department is also large. Under marketing

department more then 50 employees are worked. Marketing department handled all the activities

which are connected with market like, to decide price of product, advertisement, channel of

distribution, marketing research, product planning etc. but final decision by the G.C.M.M.F.

Human resource management of dairy is controlled all the activities which is connected to the

people. Dudhsagar dairy is personal policy is build up on the bases of employee’s welfare activities.

Dudhsagar dairy’s financial position is also very good. It has a enough money to establish a

new project. It has enough money to solve the uncertainty, & its credit in market is also good.

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INTRODUCTION

Dudhsagar Dairy is a co-operative dairy. It works under Gujarat Co-operative Milk Marketing

Federation. Dudhsagar Dairy takes milk from many villages around Gujarat and pay for their milk.

Then Dudh Sagar Dairy processes it & pack in different packaging and after supply. Dudh sagar

Dairy’s plan is biggest in the all our Asia.

The main plant of union is situated at mehsana in Gujarat. It has a processing capacity of

11.05 lakh liters milk per day. The dairy also has 5 chilling centers, 2 cattle feed plants operating at

various locations in Mehsana. Dudhsagar provided dairy also other services such as animal health

artificial insemination; cattle feed etc. to its members of society.

The current turnover of the union is rs 1480 Crores in 2007-2008. It has employee strength

of nearly 2000. Dudhsagar dairy has installed an ERP software programme named lli by oracle so that

the activies are carried out there with an ease.

Dudhsagar dairy produces milk & milk items under the brand name of “Sagar” & “Amul”.

Such products are;

1) Pouch milk

2) Flavored milk

3) Chhash

4) Infant milk powder

5) Table butter

6) White butter

7) Pasteurized flavored milk

8) Mineral mixture

These products are marketed under the brand name of Amul, Sagar and also sold

throughout India & exported through Gujarat co-operative milk marketing federation limited, Anand

(GCMMF, ANAND).

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COMPANY PROFILE

Name:-

“MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD.”,

Mehsana.

Address:-

Dudhsagar Dairy,

Mehsana District Co-operative Milk Producers’ Union Ltd,.

Mehsana-384002

Registered Office:-

Dudhsagar Dairy,

Mehsana District Co-operative Milk Producers’ Union Ltd,.

Mehsana-384002

Date of Establishment:-

Registered Date : - 8th Nov., 1960

Starting Date : - 2nd April, 1961

Type of industry:-

Co-operative society

Bankers:-

The mehsana district madhyastha sahakari bank ltd. Mehsana

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Bank of Baroda, mehsana

Bank of India, mehsana

S.B.I, mehsana

U.T.I bank, mehsana

Chairman

Shri Vipulbhai Manshingbhai Chaudhary

Vice Chairman

Harjivan devabhai patel

Directors

Shri Rambhai Baldevbhai

Shri Khengarbhai Bijalbhai Desai

Shri Ramjibhai Savjibhai Chaudhary

Shri Ramjibhai Karamshibhai Desai

Shri Vihol Chandenji Ravaji

Shri Mafatlal Maganlal Patel

Shri Prahaladbhai Prabhudas Patel

Shri Behacharbhai Jesingbhai Chaudhary

Shri Nandolia Ahemadbhai Algi

Shri Divangi Javanji Thakor

Shri Kalabhai Dvarkabhai Patel

Smt Rajeshriben Naileshkumar

Smt Vakhat Haribhai Chaudhary

Smt Daliben Hirabhai Chaudhary

Shri Dist. Registerar

Shri Bharat M. Vyas

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HISTORY & DEVELOPMENT

Mehsana-a largest milk producing district of Gujarat is famous since long for cattle breeding

and animal husbandry practices. Large, small and marginal farmers and landless laborers are

engaged in the practices of animal keeping and milk production. The high yielding well known

“Mehsani” buffalo breed is native of the district and is known for its potential of economical milk

production.

The UNICEF team, after being convinced in 1958 about the potential of milk production in the

district Co-operative lines. Under the leadership of late Shri Mansinh P. Patel Mehsana district co-

operative milk producers’ union was formed and registered on 8th November, 1960. The union

commenced supplying, raw milk to the municipal dairy. Ahmadabad in April 1961. Subsequently, on

2nd April, 1963, the foundation stone for the union’s own diary plant was laid down by Shri Morarjibhai

Desai, the then Finance Minister. Govt.of India. The project was completed in record time of one and

half years.

This could be achieved due to able guidance and generous cooperation of Dr. V. Kurien, then

General Manager, Kheda District co-operative milk producers’ union ltd., Anand. The new dairy –

“Dudhsagar” was inaugurated on 2nd April, 1965 by Shri C. Subramaniam, the then Minister for

Food and Agriculture, Govt. of India and came into existence with an initial handling capacity of 90000

liters of milk per day. Continuous efforts to cover more and number of villages under this co-operative

network necessitated gradual expansion. Accordingly, the union is now capable to handle 10.5 lack

liters of milk per day. During the year 1997-98 union procured total of 3,02,800 milk producer

members. Women membership is 32 percent amongst the same. The union procured 1330304 kg of

milk, the highest quantity ever collected before, on 14th January, 1998.

The union makes use of most advanced technologies for manufacture of various milk products,

for providing better animal health care services and for building socio-economic strength. It is

equipped with latest sophisticated plant and machineries suitable for processing of milk and

manufacture of products like butter, dry milk products such as skimmed milk powder, whole milk

powder, baby food and dairy whitener, ghee, sweetened condensed milk, etc hygienically. The

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products meet national and international quality standards and are available in the desired quantities

throughout the year from retail outlets, managed by M/s Gujarat Cooperative Milk Marketing

Federation Ltd, Anand spread throughout the country.

Up gradation and improvement of the buffalo/cow breeds located in the district being backbone

of organizational growth, union established bull mother farm at Jagudan to undertake the activities

such as raising of buffalo and cross-bred male calves as the future bulls, running frozen semen

laboratory, progeny testing of buffalo and cross-bred bulls, development of cross-breeding farm and

use of embryo transfer techniques for animal breeding etc. the above is endeavored further by

providing animal health care services and artificial inseminations at the door steps of farmers with

strong network of qualified veterinarians, mobile vans, wireless networks and related infrastructure

facilities. The union has also established two cattle feed plant for manufacturer of balanced cattle

feed. These factories are run by the union on “no profit and no loss” basis so as to provide balanced

feed to the milk animals owned by farmers at reasonable affordable rates.

The union committed to create socio-economic stability by providing best possible services

concerning all spheres of well being of rural community. Happiness with smile on face of small and

marginal farmers, landless, laborers, widows, divorcees etc is seen as a result of on going efforts of

union to achieve its goal. It is actively associated and participating with institutions like the National

Dairy Development Board, the Central Social Welfare Board, The District Rural Development Agency,

The Gujarat State Co-operative Union, in implementation of various schemes like Research And

Development Programmes, Afforstation Programmes, providing loans/grants for purchase of milk

animals to low income group individuals, widows, divorcees etc, providing financial assistance for

purchase of electronic milko-tester machines, milk collection centers and communities practices;

providing cross-bred female calves; co-operative development programmes, training of village

societies secretaries; Group insurance of animals and members through LIC and providing assistance

for development of community fodder farms to help marginal farmers and landless laborers.

The above listed activities are regularly revised and updated to align with recent

developments taking place from time to time so as to keep the organization sustainable in the present

competitive era of liberalization and globalization.

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A deep sense of understanding and foresight of key personnel like the past Chairman Late

Shri Mansinhbhai P. Patel and the present Chairman Shri Vipulbhai M. Chaudhari who continuously

giving an impetus for future organization growth and strategies. The union has a team of highly

qualified professionals, and skilled man power who have ability to change wisdom into reality and

whose effort could make DUDHSAGAR DAIRY appear on the world map of dairy industry.

VISION & MISSION

To produce the value added milk products like Ghee, Butter, Powder, etc.

To process the raw milk and allocate to various sections.

To preserve the milk for longer duration.

To manufacture milk powder to manage the excess liquid milk.

To collect the milk available from various villages (Societies).

To supply the excess liquidity milk to the needy expressive dairies

To handled the chilling centers related activities

To add the value to the procured raw milk.

To provide the nutritive diet to the consumers.

To preserve the milk for longer duration.

To manage the flow of milk.

AWARDS & CERTIFICATES

Achievements of organization

“MEHSANA DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD.”, Mehsana gets

three certificates at a time.

For Environment ISO 14001 In 1996

For Quality ISO 9001 In 2000

For Safety H. A. C. C. P. 9000 In 2002

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Organisation chart

Sr. Mgr(prod.) Mgr/Ass.Mgr Plant office section head)

Supervisor Dy.GM(PO) Operator

Worker AGM (Eng.) Ass. Mgr.

MR (shift Engg./Incharge)

Chairman MD (ISO 9000/ISO 14000/HACCP)

Ass. Mgr (QA) Shift I/C Jr. Officer/Shift Eng.

GM (Comm) Chemist/ Workers/operator/ Microbiologist Helper

Dy. Mgr (HR & A)

Ass. GM(CS) Sampler/ Workers

Mgr(IA)

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Organisation structure

Sr. Manager Production( R.C. Patel )

Milk SFM Butter & Eng. Power Sec. SCMProcessing (Sterilized Ghee Section Astt. Mgr (SweetenedAstt. Mgr Flavored Astt. Mgr Powder N1-N2 Condensed(Prod) Milk) (Prod) Milk)Process Astt. Mgr. Astt. Mgr Astt.

(Prod)SFM Powder N3-N4 Mgr.(Prod)

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BASIC PRODUCTS

Sagar Gold (Pasteurized full cream milk 6.0% Fat & 9.0 SNF.)

Amul Shakti Pasteurized stander Milk

Amul Ghee

Amul Cool flavored milk

Amul Spray Infant Milk Food

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Sagar Skimmed Milk Powder

Amulya Dairy Whitener

Sagar tea coffee whitener

Amul Pasteurized Butter

Amul Mithai mate

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MAIN PRODUCTS

1. Milk:-

~ Standardized milk 4.50 fat/8.5 SNF

~ Tonned milk 3.0 fat / 8.5 SNF

~ Double Tonned Milk 1.5 fat / 9.0 SNF

~ Whole Milk 6.0 fat / 9.0 SNF

2. Flavored milk:-

~ Elaichy Flavor

~ Kesar Flavor

~ Rose Flavor

3. Butter:-

~ Table Butter ( Yellow Butter )

~ White Butter

4. Ghee:-

~ Pure Ghee

5. Powder:-

~ Whole Milk Powder

~ Infant Milk Powder

~ Skimmed Milk Powder

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6. Scm:-

~ Sweetened Condensed Milk

TECHNICAL SPECIFICATION OF PRODUCT

The purchasing procedure of goods includes

Indent of the required goods is sent to the purchase department.

Then purchase issue quotation for purchasing of goods.

Then most suitable party is chosen according to the price and quality of the material.

Goods are received and inward into store register.

Goods received note is issue.

Then appropriate person of concerned section to which goods belong tests goods. If one is

not satisfied with goods then he can reject them. Otherwise he issue test report of goods.

Now goods received note is posted into ERP.

Materials are issued to the concerned section as per their requisition slip which concerned

sectional in charge enters demand of their section with item code number.

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PRODUCTION PROCESS

Process of making milk.

Milk Farmers

Village Milk Co-op. Soc. (Collection Center)

Chilling Center

Raw Milk Reception Dock (RMRD)

Milk Processing Plant

Powder Butter & Ghee Milk PackingSection Section Section

Storage

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Dispatch Federation(GCMMF Ltd)

Distribution Channel

Consumer

Explanation

The milk is brought to the dairy by transportation or by tanker. Then it is collected in

raw milk receiving tank. Then further that milk is pasteurized by heating the milk at 80 Degree

Celsius after heating the processed milk is cooled. After this the cream is separated and then

the milk is packed in the bags.

After receiving the milk reception department pouch department pack this milk in 500

ml bag. In this department as 4 pouch packing machine. The capacity of machine is 60

pouches per 1 minute pack. They use different type of packing pouch like

Sagar Gold

Sagar Stander Milk

After packing milk in 500 ml pouch they store it in cold storage and the temperature of

the cold storage is four degree.

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GHEE SECTION

Process of making Ghee

Receive Cream in the tank

Process in Serum Separator

Butter Milk

Butter is passing on hot exchange

Butter receives in ghee kettle and heating on 112 degree Celsius at an hour.

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Ghee is stored in cold tank and ghee cold on only 35 degree Celsius

Packing

Explanation

First of all Cream receive in cream tank and then cream are separated on a Siram

separator and Butter and Milk are separated. And after butter go on butter malting vat and

butter has heated on 55 Degree Celsius and after butter go on Ghee Cattle’s. Then butter

has heated on 112 degree Celsius in ghee cattle and ghee is ready. After ghee cold on 35

degree Celsius and after ghee go on packaging department by ghee tank.

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BUTTER SECTION

Process of making Yellow Butter

Raw Milk

Heated on 82 degree Celsius

Machine through Raw Milk has been separated in two different items

Raw cream [cream pasteurization: storage of pasteurized Milk

Cream having 37-43% Fat, temp. 12< degree Celsius

Aging (stored) 2 hours minimum]

Cream use in contimeb machine

Add anato color and salt

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Butter will be ready

Packaging

Store on 0 degree Celsius

Dispatch

Explanation

Yellow Butters

First of all raw milk has been heated on 80 to 82 degree Celsius and after raw

milk separated from the two different items one is Milk, other is Cream. Cream has use

in contimeb zone and added Anato

Colour (add 0.45% colour at the whole quantity of the butter) and salt (add

2.6% salt at the whole quantity of the butter). Under contimeb zone cream, Anato

Colour and salt has mixed and yellow butter will be ready. Then yellow butter will go on

packing department and here butter finally packs. Then yellow butter goes on cold

storage below 4 degree Celsiu

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Process of making White Butter

Raw Milk

Heated on 82 degree Celsius

Machine through Raw Milk has been separated in two different items

Raw cream [cream pasteurization: storage of pasteurized Milk

Cream having 37-43% Fat, temp. 12< degree Celsius

Aging (stored) 2 hours minimum]

Cream use in contimeb machine

Butter will be ready

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Packaging

Store on 0 degree Celsius

Dispatch

Explanation

White Butter

First of all raw milk has been heated on 80 to 82 degree Celsius and after raw

milk separated from the two different items one is Milk, other is Cream. Cream has use in

contimeb zone. Under contimeb zone cream has been separated and after butter will be

ready. Then butter will go on packing department and here butter finally packs. Then

butter goes on cold storage below 4 degree Celsius.

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POWDER SECTION

Process of making Powder

Pasteurized Chilled Milk

[Powder milk silo]

Milk evaporating plant high heating

95-102 degree Celsius

Concentrated milk tank

Spray drying (Drying chamber)

Filtered hot air

160-210 degree Celsius

Vibro Fluidizer

Filter air 20-30 degree Celsius

Filling bags/ Power Silo

Packing

Storage

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Dispatch

RAW MATERIAL & UTILITY

The one and only Raw material on which the dairy plant function is milk and as

Gujarat has abundant live stock especially cows and Buffalos availability of the raw material.

Lower level or primary level milk producers co-operative make a collection of milk from

member’s producers. Member’s producers are the farmers owing cows or buffalos. They bring

milk to primary level societies. In case of quality of the co-operative must be alert so as to

neglect the collection of sour milk and substandard milk. For pricing collection milk importance

is given to quality. The milks price is a based on fat and snuff Ex. Solid nonfat center. It needs

to consider the bacterial population in the milk for raw paying milk price. Payment is done on

monthly or daily basis depending upon co-operative policy and member preference.

QUALITY MANAGEMENT

Introduction

Success of any plant depends upon the acceptability of their product in

national & international market. At dairy plants, milk is a seed and its flourishment

depends upon the fertilizer named “ quality ‘’. Better the quality better will be the product

and the best will be the acceptability.

At Dudhsagar dairy there is a central quality assurance laboratory, which is

equipped with equipment of modern technology and skills of highly efficient and

experienced employees. Due to its quality consciousness, it gets ISO: 9002.

Quality is very broad term as it refers to chemical, physical, technological, economic,

bacteriological and aesthetic characteristics. It can also be defined as that which the public likes

most on the basic of subjective (organoleptic properties) and objective (recognized scientific tests)

tests being invariably used in the quality control laboratories ‘Quality Control’ Or ‘Quality

assurance’ is an activity or procedure, method or programme that will ensure the maintenance

and continuity of the specifications and standards of the products within the prescribed tolerances

during all stages of handling, processing, preparation, packaging, storage and distribution. It also

further ensures that all the original and desirable characteristics are sustained during these

operations and will remain unaltered until consumed.

The ultimate aim of the control procedure should be to provide a product in which the

original nutritive qualities, flavour and appearance have been preserved and no harmful

organisms or substances are present to affect the consumer adversely.

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The control procedure of QA lab. of Dudhsagar is distributed under these sections.

1. Chemical Quality Assurance

2. Microbiological Quality Assurance

3. Packaging material Quality Assurance

The Quality Assurance procedure starts from the reception of raw milk. The job is

performed by RMRD lab. Which is located at the dock.

There are two sections at central quality assurance lab

1. Chemical examination section

2. Microbiological examination section.

Orgonoleptic testes of raw milk are performed at RMRD.

There is a separate laboratory for sweetened condensed milk.

Standards followed by the dairy

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INTRODUCTION

In each and every organization Human resources & Administration Department plays

a vital and crucial rile. The satisfaction of the human resources is very important for the

improvement of any business. It also helps in increasing the quality of products & decreasing

the cost of production.

This department looks after human resource of the dairy. This department maintains

total information of individual.

The general task performed by this department:

Recruitment

Arrange induction program for new recruits

Promotion & Demotion of employees.

Training & Development

Arrange visit for students.

Maintain work force as per requirement

Maintain the all records of individual

In the dairy total member of staff are above 1850. Maximum member of worker is in

powder section & it is 361.

Organisation structure

Manager

Assistant manager

Supervisor

Clerk

Workers

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WORKING TIME SCHEDULE

The dairy has a time keeping system. The officers & employees have to mark their

presence in attendance register. There is also card system that is very easy. All the staff on

factory floor is working in the three shifts each shifts is of 8 hours.

The working hours divided as under:

1. First Shift 00.00 a.m. to 08.00 a.m.

2. Second Shift 08.00 am to 16.00 p.m.

3. Third Shift 16.00 p.m. to 24.00 p.m.

4. Office time 10.00 a.m. to 18.00 p.m.

The company is providing tea, break fast & lunch concessional rate to their

employees

MAN POWER PLANNING

In hr process the first step is manpower planning. In manpower planning, first management has

to decide how many employees are required, with which skill and ability qualification, efficiency etc

are required.

Find the requirement of recruitment and then find the source of recruitment for the grade wise

and for which position employee is required.

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RECRUITMENT & SELECTION

Recruitment

“Recruitment is a process of searching for prospective employees and stimulating and

encouraging them to apply for jobs in an organization” i.e. the recruiters prepare profiles for

each category of works and accordingly work out the main specialization, where they should

be placed.

Sources of recruitment: there are two sources (1) Internal (2) External

(1) Internal Sources includes personnel already available on the pay roll of a company, i.e.

its working force. When ever vacancy occur somebody from within the organization is

upgraded, transferred, promoted & some time demoted.

(2) External sources lie outside of the company i.e. from schools and collages by advertise

in newspapers, professional journal etc. Such advertisements enable prospective

candidates to screen themselves in order to find out whether they are fit for the job or not.

Other sources of recruitment: Private employment agencies, Placement exchanges,

Management consulting firms.

WELFARE ACTIVITY

Human resource and development programme is done for the development of the farmer

members who provide milk to the dairy. Dudh Sagar Dairy has established a bull mother farm

at Jagudan. The activities are being conducted:-

Rising of buffaloes and cross breeding

Frozen semen laboratory

Progeny testing of buffaloes and cross breaded bulls

Embryo transfer project

Group insurance scheme is provide for both the husband and wife of milk producer’s families.

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Cattle group insurance scheme is also provided by dairy. By this scheme the dairy has

covered 75263 animals (milchi) of 321 societies.

RECREATION FACILITIES

Uniform:-

The management provides all the employee uniform.

Residential Facilities:-

All the amenities are provided to staff. Residential quarters are provided to the

essential managerial staff. HRM will be provided to those employees who are not

using the residential facilities.

Medical Facilities: -

There is a medical dispensary for medical treatment & medical checkup of the staff

members.

Library Facility:-

Dudhsagar gives library facility to the all employees.

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TRAINING AND DEVELOPMENT

The organization gives necessary training for the selection of the staff The duration of

training is depending upon the designation. For workers, worker education programmers, for

supervisory level, management development programmers are conducted. It gives training in

house & if required it send workers or employees to training agonies too.

There are two type of training

On the Job Training Methods.

1. On Specific Job.

2. Experience

Coaching

Understood

3. Position Rotation

4. Selective Project

5. Apprenticeship

Off the Job Training Methods

1. Special Course And Lecture

2. Conference

3. Case Study

4. Role Play Playing Method

5. Management Games

PROMOTION POLICY

It is an important method to compromise the leave of organization. It is based on

seniority. By promotion employee is transfer from lower job of his\her job by increase his

authority & responsibility salary and status. D.C.M.P.U.Ltd of a permanent employee can not

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promotion offer 8 to 10 year assurance with good report of service. They are giving promotion

on the base of seniority and they are giving promotion as per requirement.

INDUSTRIAL RELATION

Industrial relation should be maintained between the workers and management. Till

now there is low bas news obtained from the organization. Organization emphasis more on

human reassures development.

Since commencement of business of a production i.e. from 2nd April 1965 Company

has maintain good relation with workers and consumer. The management had never neglected

the human resources department and it has resulted wale. Management satisfied all the basic

need of the workers no strike are been done in the organization. Management treys to

understand the problems created between workers and management.

ENVIRONMENTAL POLICY

Dudh Sagar dairy, Mehsana is one of the largest producers of milk and milk products

in India.

We shall make a conscious effort for the prevention of pollution of env ironment for the

present and future of our business and the society at large.

We shall strive to comply with all application environmental legislation and non-regulation

guidelines.

We shall endeavor for continual improvement performance by better utilization of resources

of nature and minimizing the waste.

We shall involve all our concerned employees for the presentation of the environmental and

for the promotion of clean and green surrounding within our premises.

PERFORMANCE APPRAISAL

The Performance appraisal system is a process of evolution of employee

performance on the job in louns of its recruitment. It is also known as assessment of behavior

performance and attitude of employee.

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The value, excellence, spirit, qualities of status of some subjects of performance

appraisal is quite useful in various administrative decisions as training, transfer, promotion

etc.

In Dudhsagar there is very good performance appraisal system and the management

of unit is and profitability is very high.

Slogan:-

“One Hand in another Hand”

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INTRODUCTION

“Finance is blood of any Unit”

Finance department plays a vital role in the organization .It is nothing but the

concerned with rising funds in suitable manner. For the success of any industry finance is

working like milestone. It is said to be a life blood of business.

At earlier times the capital was collected by the business organization when ever it

needed but now a days it has become a very important part in the organization. The prestige

of the organization depends upon its financial condition.

The DUDH SAGAR DAIRY of Mehsana has procured its finance from different

financial institution and some banks they are.

Organization structure

DGM (Finance/ Account)

Account Assit.Manager Officer

Book Finance Taxation

Keeping Report Section Cash Section Bank

Section Section Section

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Billing Schemes

Section Section

CAPITAL STRUCTURE

There is a necessary for attaining a proper balance among the dept and equity sources

in its capital structure. Which can maximum the long run value per ordinary share in the

market capital structure is comprise owner capital and borrowed funds.

According to patter of the capital structure should be choose when any minimize cost

of capital and value of stock. A capital structure reface to structure decide by top level

financial manager. Consisting of own trend and borrowed funds and in the term of

establishment ratio which reflect the attitude of most of depend more upon own firm and upon

borrowed fund.

Assumption

Firm employee only two type capital Debt & Equity

The firm has a policy of paying 10 % dividend.

The Mehsana D.C.M.P.U. LTD. Capital structure is something like

Authorized share capital:-

2500000 share of RS 100 each 250000000 RS.

Share capital fully paid up 182572600 RS.

AUDIT DEPARTMENT

Audit department keeps constant watch on each and every financial activity performed

by various departments.

Internal Audit - Financial, Proprietary, and Operational auditing is performed. There

are 13 persons in this auditing. It performed following function.

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Pre audit of bill and other claim

Post audit of salary bills

Post audit of books

Legal audit

Audit of accounts for dairy, Chilling centers, Cattle feed plants

Stock audi

ACCOUNT DEPARTMENT

(1) Capital & Reserve

The present Authorized share capital of the union is of Rs.25 Crores & Paid up capital

18.26 Crores. It appears that the management of the dairy has followed a very distribution

policy in distribution of dividend in past & ploughed back its profits, which is evident from

reserve & surplus amounting to Rs. 9 crores as on 31/03/05.

(2) Secured Loans

Cash Credit:

From S.B.I. 18.99

From Bank of Baroda 7.73

(The above borrowings for working capital are secured by hypothecation of stock and

book debts.)

(3) Investment

The total investment made in 2004-2005were of 7, 69, 25,720 as below.

(A) In Government Securities 10,000

National Saving Certificate

(B) In Shares 7, 69, 15, 720

Cash & Bank Balance Rs.

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Cash & Cheques on hand 86, 599

Balance with scheduled banks in

Current accounts 1, 12, 62, 493

Fixed deposits with schedules banks 95, 13, 928

CO-OPERATIVE BANK BALANCE

Current account 43, 43, 533

Saving accounts 6, 197

FUNCTION OF ACCOUNT DEPARTMENT

Management of financial resources

Accurate and timely payment to societies and suppliers

Budgeting, Planning, Costing, Controlling to all agencies as per requirements

Maintaining books of accounts for all purpose

This department also has to maintain working capital requirement & accounts of Dudh

Sagar research & development.

This dairy makes payment to societies within 10 days & to the supplier in 30 days.

The billing function would be checking bills, passing it correspondence with related parties.

Other function involves taxation .i.e. income tax payment, TDS, sales tax & other

taxes. It also takes care of benefit schemes for employees like PF, Gratuity and Insurance

etc.

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Trading a/c and Profit & Loss a/c

EXPENSES RS. RS.

OPENING STOCK    

Finished goods 76,21,83,626  

 Work in progress 11,81,43,040  

Milk stock 4,90,43,885  

     

Milk purchase   11,38,82,37,501

Purchase,transport expense   49,07,01,293

Miscellaneous expense   2,36,52,12,470

Co-operative expense   2,08,39,892

Processing expense   1,68,25,130

Electricity expense   37,47,50,901

Salery & wages   28,07,69,559

p.f.graduity facility   7,72,48,480

Repairs & maintenance

expenses

  6,72,39,455

    5,09,48,347

Marketing expenses   1,14,36,918

Post , stationery ,telephone   47,12,322

Insurance premium   37,49309

Rent & tax expense   52,94,435

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Audit fees   1,57,10,259

Sundry expense   3,18,69,931

Intrest & bank commission   9,69,56,538

Depreciation   12,16,55,115

Charity expense    

Provision for taxation   56,77,035

Net profit   3,54,97,815

TOTAL   16,39,47,03,256

 

 

INCOME RS. RS.

SALES   14,82,18,27,512

     

Dividend   1,21,31,790

Intrest   4,43,64,702

Sundry income   1,06,27,294

Closing stock    

Finished goods 1,32,48,70,445  

Work in process  15,14,29,162  

Milk stock 2,94,52,315 1,50,57,51,958

     

TOTAL   16,39,47,03,256

 

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RATIO ANALYSIS:

Gross Profit Ratio:

2007-2008

Gross profit * 100

Net sales

Gross profit = net sales – cost of goods sold

Cost of good sold = opening stock + net purchase + purchase expenses +

Production exp. – closing stock

= 929370551 + 11388237501 + 490701293 + 1,68,25,130 –

1,50,57,51,958

= 11,31,93,82,517.

Gross profit = 14,82,18,27,512 – 14,33,08,86,433

= 3,50,24,44,995

Gross profit ratio = 3,50,24,44,995 * 100

14,82,18,27,512

= 23.63 %

2006-2007

Cost of Good Sold = Opening Stock + Net Purchase + Purchase

Expenses +Production Exp. - Closing Stock

= 275779907 + 7083354989 + 192564451 + 21561023

– 1194070946

= 6379189424

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Gross profit = 8696051853 – 6379189424

= 2316862629

Gross Profit Ratio = 23166862629 * 100

8696051853

= 26.64 % (Ans.)

interpretation:

A high gross profit ratio is good for the management. Here the gross profit ratio of the

year 2007 – 08 is 23.63 % while in 2006-2007 it was 26.64 %. Which shows the decline in

the performance of the company.

NET PROFIT RATIO:

2007-2008

Net profit * 100

Net sales

= 3,54,97,815 * 100

14,82,18,27,512

= 0.24%

2006-2007

Net profit * 100

Net sales

= 3,73,30,960 * 100

12,65,92,28,733

= 0.29%

interpretation:

Net profit margin ratio establishes relationship between net profit and sales. It

indicates management efficiency in manufacturing, administrating, and selling in the

products.

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A firm with high profit margin can make better use of favorable conditions. The high profit

margin is good for management and also for the company.

We can see that the net profit ratio is in the year 2006-’07 is 0.29% which is quit good for the

management, but in the year 2007-’08 it became 0.24% which shows the decline in the net

profit of the company.

EARNING PER SHARE RATIO:

2007-2008

= Net Profit(PAT) *100

No. of Shares Out Standing

= 3,54,97,815 * 100

25,00,000

= 1419.91

2006– 2007

= Net Profit(PAT) *100

No. of Shares Out Standing

= 3,73,30,960 * 100

25,00,000

= 1493.24

interpretation:

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Earning per share ratio indicates the ratio of per share earnings of the

company. This is ratio is high for the management as well as company also.

Here in the year of 2006-’07 it was 1493.24 and in the year 2007-’08 it was 1419.91

Which shows the decline in the earning per share of the company.

CURRENT RATIO

2007-2008

= Current Assets

Current Liability

= 12,37,01,3054

1,49,36,87,805

= 0.83:1

2006-2007

= Current Assets

Current Liability

= 2544836384

2118808316

= 1.20:1

interpretation:

The current ratio measures the firm’s short term, it indicates the availability of

current assets in rupees for every one rupees of current liability. This ratio is generally 2:1 it

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shows the satisfactory position of the business or company. Here in 2006-’07 year it was

1.20:1 and in the year 2007-’08 it was decrease and became 0.83: 1 it shows the worse

condition of the company.

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INTRODUCTION

“Mehsana District Co-operative Milk Producers’ Union Limited, (Dudhsagar Dairy)”,

Mehsana is a co-operative union. It is classified into large scale. “Dudhsagar Dairy covers a domestic

market and now-a-days its marketing is widely spread in foreign countries also.

It has covered major markets in the states like Karnataka, Rajasthan, Maharashtra and many other

states in India Including Gujarat. Dudhsagar Dairy is having its goods reputation in the market

because of its best quality. Quality is the bench mark of Dudhsagar Dairy resulting in to raising the

graph of consumer demand and market.

This last year Dudhsagar Dairy procured more than 20,00,000 kg/day and it’s turnover has

more than 1266 crore for the year 2006-07.

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DISTRIBUTION NETWORK

“Dudhsagar Dairy” is producing its various products like milk, Ghee , Butter, Milk Powder and

Sweetened Condensed Milk etc. It is very necessary to have strong distribution channel.

It has two types of distribution channel:

a. Local distribution channel

b. Nationally distribution channel.

Local Distribution Channel:-

The Dudhsagar Dairy has its own sales office, which is organized by Dudhsagar Dairy

itself. It has different sales office in different cities like Kalol, Kadi, Mehsana and other places.

Nationally Distribution Channel:-

Federation Dairy union – Federation – Depot – Wholesale Dealer – Retailer - Customers.

This distribution channel is decided by Gujarat Coop Milk Marketing Federation Ltd.

DISTRIBUTION CHART

Products

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Agents

Wholesaler

Retailer

Consumer

MARKET SEGMENTATION

Market segmentation is a very important function for the Market consists of buyers different in

any ways. They are different their wants resources locating buying practices, Because buyers have

unique needs and wants each buyer is put initially separate market GCMMF has segmentation its

market in following variables.

Geographic segmentation

Under these variables Dudhsagar has Divides market into difference geographic

units such as region, states, cities ets.Dudhsagar sells its products by geographic segment

action like in the north where production of milk is very high the sale of Dudhsagar’s product

is not much, But in the western region it is high. Dudhsagar this kind of variables and deals

with it.

Demographic Segmentation

Under these variable Dudhsagar has dividend market into several graphs such as age

genders family size, Income occupation etc, for the every grope Dudhsagar marketing

strategy is Different in milk.

Dudhsagar targets all the class where as in the other products like butter, Ghee, Ice-

cream etc. It’s targeted to middle and higher middle and higher and higher middle class.

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ADVERTISING

“Dudhsagar Dairy” is do advertisement of it’s product many different way which are

under

Advertisement through news paper

Advertisement through Board and Hordings.

Advertisement through posters.

RESEARCH AND DEVELOPMENT

This is very essential and important section in the organization. The dairy has its own

quality control laboratory on the first floor of the manufactured by the plant are analyzed and

checked out in this section. The way they checked is as follows;

Raw Materials

Processed Material

Finished Product

PURCHASING DEPARTMENT

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Select supplier base on their ability.

Have continues follow up week suppliers regarding timely delivery and quality.

Obtain raw material at the most competitive prices from the market.

Attend to complains of user department and take required actions.

The whole purchase activity is divided in three basis arias.

a. General Purchase

b. Engineering purchase

c. Cattle feed purchase

SALES DEPARTMENT

Organization structure

Dy. Manager (Sales)

Sr. Officer (3)

Local sales Federation Sales Coop. Milk

Army Sales Soc. Sales

Sale of milk & its products in local market under brand name “SAGAR”.

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Sales of milk products to GCMMF under brand name “AMUL”.

Review of customer requirements to meet customer satisfaction.

Communicating and Liaisoning with excise, sales tax and other related agencies.

There are three categories in sales (1) Local sale (2) Federation Sale (3) Army Sale

Local sales

It is the sales made in the boundaries of Mehsana District. The products mainly sold

are Sagar milk, Sagar Ghee, Sagar Butter Milk, Amul Butter and Amul Milk Powder. This local

sale is done through distributors. On special occasions like marriage, party big orders are taken

directly from party. Average milk sold locally is 7500 liters, per day.

Federation sales

Dairy sells all kind of products to federation depot under “Amul” brand through out of

India. For this federation sends a purchase order to the sales department of the Dudhsagar Dairy.

A consignment sales is different then above sale in only one factor and it is the

consignee. Here, the consignee is federation- approved “Agents”. These agents send demand to

federation than federation clubs all individual demand divide it in purchase from for each union

considering the stock availability

Army sales

It is very special selling to Army. There is no intermediate between two. Only Butter,

Sweetened Condensed Milk and Skimmed Milk Powder sold to Army, from this Powder is

negotiated by Federation and Sweetened Condensed Milk Dairy.

Powder is supply by main four centers:

A. Mehsana District Co-operative Products’ Union Ltd.

B. Amul Dairy.

C. Sabar Dairy (Sabarkantha)

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D. Banas Dairy (Banaskantha)

Whole Milk Powder is given to Army’s supply depot. There total 47 Army supply depot.

Skimmed Milk Powder is given to Army’s Military Farm.

COMPETITORS

Local level

Sardar Dairy

Vimal Dairy

Banas Dairy

National level

Paras Dairy

Mother Dairy

Nestle [Powder, Ghee, SCM]

Britannia [Butter & Ghee]

Dynemix Dahi

Umang Ghee

New Dimond Ghee

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SWOT ANALYSIS

Strengths

DUDHSAGAR DAIRY is producing high quality products.

It has developed a very strong direct distribution channel.

It achieves its target

Mostly they sell under the brand name AMUL.

Weakness

The Product price seems to be little on the higher side.

Lower advertising compare to those competitors.

Opportunities

If they use promotional tools sufficiently then they get more customers.

Giving more discounts and credit terms may increase the sale. However; care must

be taken about the profit margin.

Company's name is reputed so, it may launch in all over the country

Threats

Recession affects the money supply and purchasing power of customer

Decreases.

Some product's price is high compare with competitor so care must be

taken.

Also they're so many small and big companies in all over India.

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CONCLUSION

Dudh Sagar Dairy has acted successfully as a catalyst for the rural development in

Mehsana district. Dudh Sagar dairy has passed over all sound position since it’s in corporation. At

present the company’s feature seen to bright. It has been well develop since its incorporation.

Dudh Sagar Dairy is having good human resource i.e. good man power. The dairy is

having marvelous support form consumers. The dairy management criteria are good its executive

officer and the chairman of the dairy are having good knowledge and he is highly experienced.

Dairy has succeeded in setting up foreign market which shows that dairy has its good

reputation. Dudh Sagar dairy is Number one in the Asia and further would have good position in

the word. According to our opinion Dudh Sagar dairy’s future is bright.

According to us the Dairy is having wide scope of development in the next coming years.

After some time it will accept very large and wide market in the international trade.

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BIBLIOGRAPHY

Book

Kotlar Philip ‘Marketing Management’

Published by Pearson Education, 10th edition

K. Aswathappa, Human Resources and Personal Management 3rd Edition.

The Unfinished Dream : V Kurien

Web site:-

www.amul.com

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