A

REPORT
ON
INDUSTRIAL VISIT AT
DUDHSAGAR DAIRY, MEHASANA

Programme: M.B.A 1st sem

Academic Year: 2010 – 2011
Subject: Practical Studies
Duration: 13-10-2010 on 12:30 pm

SUBMITTED
BY

MBA1st Roll
Names of Stdent
Division No.
PAREKH BHAVIN BHARATBHAI A 29

SUBMITTED
TO

IMAGE COLLEGE

SARASWATI INSTITUTE OF MANAGEMENT STUDIES

AT & 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 Signature of
Coordinator Principal

College Stamp

SARASWATI INSTITUTE OF MANAGEMENT STUDIES

AT & PO : Rajpur, TA: Kadi,
Dist. Mehsana, Gujarat, India

PREFACE

2
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

3
 ACKNOWLEDGEMENT

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

prepare a Report on the same during MBA 1 ST 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

Table of Contents

4
 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

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

5
 9 SWOT ANALYSIS 63
10 CONCLUSION 64
11 BIBLIOGRAPHY 65

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

6
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.

7
8
 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).

9
 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

Bank of Baroda, mehsana
Bank of India, mehsana
S.B.I, mehsana

10
 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

11
  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
products meet national and international quality standards and are available in the desired quantities

12
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.

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

13
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

14
  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)

15
16
  Organisation structure

Sr. Manager Production

( R.C. Patel )

Milk SFM Butter & Eng. Power Sec. SCM

Processing (Sterilized Ghee Section Astt. Mgr (Sweetened
Astt. 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)

17
 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

18
 Sagar Skimmed Milk Powder

 Amulya Dairy Whitener

 Sagar tea coffee whitener

 Amul Pasteurized Butter

19
  Amul Mithai mate

 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

20
 4. Ghee:-
~ Pure Ghee

5. Powder:-
~ Whole Milk Powder
~ Infant Milk Powder
~ Skimmed Milk Powder

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.

21
 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.

 PRODUCTION PROCESS

Process of making milk.

Milk Farmers

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

Chilling Center

Raw Milk Reception Dock (RMRD)

22
 Milk Processing Plant

Powder Butter & Ghee Milk Packing

Section Section Section

Storage

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

23
 After packing milk in 500 ml pouch they store it in cold storage and the temperature of

the cold storage is four degree.

 GHEE SECTION
Process of making Ghee
Receive Cream in the tank

Process in Serum Separator

24
 Butter Milk

Butter is passing on hot exchange

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

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.

25
 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

26
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

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

27
 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

Process of making White Butter

Raw Milk

Heated on 82 degree Celsius

Machine through Raw Milk has been separated in two different items

28
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

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.

29
 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

30
 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.

31
 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.

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

32
33
 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

34
 Workers

 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.

35
  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

36
  Embryo transfer project

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

37
 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

38
 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
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 2 nd 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

39
 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.
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”

40
  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

41
Keeping Report Section Cash Section Bank
Section Section Section

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

42
 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.
 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.

43
 (A) In Government Securities 10,000
National Saving Certificate

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

Cash & Bank Balance Rs.
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.

44
 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 6,72,39,455
expenses
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
Audit fees 1,57,10,259
Sundry expense 3,18,69,931
Intrest & bank commission 9,69,56,538

45
 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

46
 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

 Gross profit = 8696051853 – 6379189424

= 2316862629

 Gross Profit Ratio = 23166862629 * 100

8696051853
= 26.64 % (Ans.)

47
 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.

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.

48
 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:

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.

49
  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
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.

50
51
  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.

52
  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

Agents

53
 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.

54
  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

 Select supplier base on their ability.

55
 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”.

56
 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.

57
 C. Sabar Dairy (Sabarkantha)
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

58
 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.

59
 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.

60
 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

61