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Goa State Co-Operative Milk Producers Union Limited





I Miss Snehal .M. Joshi Student of BBA Declare that this project report is prepared by me& not been previously formed for any award, diploma or any other degree in Goa University or else where




ACKNOWLEDGEMENT In my field of education I have been successfully able to complete my summer internship program which is a part of my course line. Hence I would like to take this opportunity to thank all those who have helped me in achieving success. Firstly I would like to thank our principal Mrs. Radhika Naik for approving & giving me this opportunity to take training at Goa Dairy. I would also like to thank our course coordinator Mrs. Shweta Pinto for her kind support. Besides, we sincerely acknowledge Mrs. Teja Dicholkar for her hard work. She has been a guide not only for our training but for this entire academic year. I would like to express my sincere gratitude to Goa Dairy marketing manager Mr. Sushant Prabhugaonkar who has provided us with this training & also all the necessary information required. Last but not the least I would like to thank my fellow colleagues who have been working with me, for being so helpful & supportive.


Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20


Pg. No 5 6 7 10 12 14 15 16 19 20 23 24 26 27 32 37 39 40 47 48



The country is the largest producer of milk all over the world. The milk production is expected to increase by 3.9% in the manufacturing year 2011 to 2012 as per the US Govt. report. The expected increase is due to rising domestic demand supported by growing disposable income of Indias middle income group. The predicted output for milk for the year 2011 to 2012 is 110 million tons, as per the report. This project (Goa State Dairy Federation) is completely a government enterprise. The project started during the year 1979 with the Goa Milk Union as an implementing agency & the financial outlay of the project was Rs. 1.05 crores. The name of the federation was changed to Goa District Co-operative Milk Producers Union Limited during the year 1980. This was done to suit the model by laws of Anand Pattern. In 1982, Goa Government provided the milk union a share capital of Rs. 15 lakhs & N.D.D.B too provided the milk union a loan of Rs. 12.5 crores. The milk union as a first step took over the entire milk procurement in the milk shed & completed it during the year 1983. Towards the second step, the milk union took over the dairy plant from Goa Government on 16th May 1984. The Goa Government also transferred its cattle feed plant (constructed & commissioned by N.D.D.B) to the Goa Milk Union on the same day. Initially the Governments staffs working in the dairy was allowed to work for the union on the standard terms of deputation for the maximum period of 2 years from 16th MAY 1984 (the date of transfer of facilities to milk union). And in the same year the Goa Milk Union was handed over to co-operative institution in the name of Goa District Co-operative Milk Producers Union Limited.

The capacity of the dairy plant was increased to 30,000 liters per day during the same year. And the Co-operative Milk Producers started & maintained its own veterinary to supplement the efforts made by the animal husbandry department of Government, so that milk producers can obtain round the clock veterinary services.


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INTRODUCTION Goa State Co-op. milk Producers Union is an apex body of affiliated more than 175 Dairy Cooperative Societies having membership of more than 20,000 farmer families. Their members procure at present about 35,000 liters of milk every day. Goa milk Union, being an apex body and the only milk union in the state it has a status of State Milk Federation, therefore shoulders the responsibility to plan and implement the various developmental activities for the dairy development in the state. A Co-operative Institution, having modern Dairy Plant of 1,00,000 liters per day capability, & make available 65,000 liters of milk per day to the urban / semi urban consumers through 180 milk booths and 750 retailers. Apart from milk procurement, processing and product making, the Union is engaged in increasing milk production by providing Technical Input Services, which includes Veterinary Aid, Vaccination Program, Artificial Insemination Services for breeding and Fodder Development Activities. The Union has also started Productivity Enhancement Program and Clean Milk Program to increase milk production. Fodder seeds of good quality, Root Slips of Perennial Grasses are supplied to the farmers at the doorsteps, at minimum cost. A Co-operative Development Program is launched since 1990, to organize, training and educational facilities for members awareness and raise their participation in the affairs of Cooperatives, adoption of advanced techniques in dairying, thereby ensuring economic viability of co-operatives. Apart from above Women participation program such as WDCLP and organization of Self Help Groups are taken up by Union.

Aim of Goa Dairy For development of socio economic status of rural women by launching Women Cooperative societies. Assuring a reasonable price for the milk produced by the members of the Goa State Co-operative Milk Producers' Union through a stable, steady and well organized market support. Marketing good quality milk and milk products to the consumers at a reasonable price. To procure milk constantly from the farmers and supply healthy and bacteria-free milk and milk products to the urban customers. To give help and guidance to the members with regards to livestock production and enhancement program, training for farmers for scientific techniques of breeding, feeding and management. To shun monopoly in the state. Role played by the Government The government keeps a regular check on the functioning of the Union. In other words, it means, that though the Union is a Cooperative society, there is an interference of the government in the activities of the Union such as the government verifies the Books of Accounts, it checks whether the Union maintains proper hygiene and sanitation at the production plant since the Union has been awarded by the Mnemonic Symbol.

To organize Anand Pattern dairy co-operative societies at the visible areas to help in the cause of society =- economic development of rural farmers, in the way providing a remunerative market around the year at the doorstep of milk producers and enraging dairy as business. Also for the improvement of the socio- economic status of rural women by establishing Anand pattern women co-operative societies and by establishing linkage with related organization for overall development and progress.


To procure milk around the year from the farmers and supply healthy and hygienic milk and milk products to the urban customers. To provide the members assistance and guidance with regards to livestock production and enhancement program, training for farmers for scientific methods of breeding. To avoid monopoly of private venders (competitors) To give Goans unadulterated milk and milk products. To give quality products at reasonable rates.

INDUSTRY ANALYSIS The total demand industry for dairy is roughly of the order is 2,00,000 per day, out of this Goa dairy supplies 80,000 lit per day. However Goa dairy is not in position to fulfill the domestic demands. Dairy farmer of Goa supply 30,000 lit of fresh milk everyday on an average. Rest of the 50,000 lit. Production of Goa Dairy is augmented by milk and milk producer from the neighboring state of Karnataka and Maharashtra. Therefore there is no demand constraint. To overcome this problem some necessary steps should be taken.

OBJECTIVES OF GOA DAIRY To organize Anand pattern co-operative societies at the visible areas to help in the cause of socio-economic development of rural farmers, in the way providing a remunerative market around the year at the doorstep of milk producer and enraging dairy as business. Also for the improvement of the socio-economic status of rural women by establishing Anand pattern women co-operative societies and by establishing linkage with related organization for overall development and progress. To procure milk around the year from the farmers and supply healthy and hygienic milk and milk products to the urban customers. To provide the members assistance and guidance with regards to livestock production and enhancement program, training for farmers for scientific methods of breeding. 9

To avoid monopoly of private venders.

To give Goans unadulterated milk and milk products & to give quality products at
reasonable rates.

In 1963, Government established a department of Animal Husbandry & Veterinary services, to specifically improve the cattle wealth of this region in order to increase milk production. The Dairy development program in the state was aimed at making this small state self sufficient in milk production within a reasonable span of time. The state government established a number of dairy Co-operative societies way back in the year 1965. The animal husbandry department also set up a small dairy plant {Pilot pasteurization plant} at Patto Colony in Panajim, same year to bring the rural milk producers under co-operative field. Also with the advent of time, the number of co-operative societies grew considerably and milk production increased to substantial level. The pilot pasteurization plant set up became inadequate to handle the increased milk procurement. The Government thought of having a modern pasteurization plant along with a bottling plant at a more suitable location. Ponda was selected for installation of a H.T.S.T. {High Temperature Short Time} pasteurization plant and the turnkey project was given to N.D.D.B. Plant with a financial outlay of 35lakhs and an installed capacity of 10,000 liters per day was commissioned on 2nd October 1972 at Curti Ponda. This project {Goa State Dairy Federation} was completely a government enterprise. The project started during the year 1979 with the Goa Milk Union as an implementing agency & the financial outlay of the project was Rs.1.05crores. The name of the federation was changed to Goa District Co-operative Milk Producers Union Limited during the year 1980 . In 1982, Goa Government provided the milk union a share capital of Rs.15lakhs. N.D.D.B. too provided the milk union a loan of Rs.12.5crores. The milk union primarily took over the entire milk procurement in the milk shed and completed it during the year 1983. Towards the second step, the milk union took over the dairy plant from Goa Government on 16th May 1984. The Goa Government also transferred its cattle feed plant (constructed and commissioned by N.D.D.B) to the Goa milk union on the same day. Initially the government staffs working in the dairy plant were allowed to work for the union on the standard terms of deputation for a maximum period of 2 years from 16th May 1984 (the date of transfer of facilities to milk union). And in the same year the Goa Milk Union was handed over to co-operative institution in the name of Goa District Co-operative Milk Producers Union Limited & It begin in the year same year i.e., 1984. And then on the 30th May 1987 the name of Goa District Co-operative Milk Producers Union Limited was changed to Goa State Co-operative Milk Producers Union Limited. 10

The capacity of the dairy plant was increased to 30,000 liters per day during the same year. And the Co-operative Milk Producers started and maintained its own veterinary to supplement the efforts made by the animal husbandry department of Government, so that milk producers can obtain round the clock veterinary services.

Work Environment
The management realizes the important of Health and hazard free work environment. Hence the management has provided as ambient atmosphere for the employees to work in peace and give their best. Work environment that are required for product conformity is maintained.


Milk supply through insulated vans will be facilitated to 5 more milk distribution routes, taking the number of routes with milk supply through insulated vans. To increase the production capacity of the plant. In order to curtain the bacterial development it has been proposed o install bulk Coolers. To replace the cans of aluminum with stainless steel cans. To install the computers at the cattle feed at the animal husbandry section which will help in maintaining the records and lesson the work burden of employees.

EMPLOYEES The numbers of employees employed are 238 out of which 39 are daily wages Wages and salaries are paid as per Central Civil Service Code as the Milk Union follows CCSC rules. Working hours of the Administrative Office is 10:00 a.m. to 5:30 p.m. Working hours of the Dairy Plant is in shifts (1st Shift -- 7:00 to 2:00, 2nd Shift 2:00 to 9:00) The Employees of the Milk Union are benefited by ESI facility, Provident Fund, Group Gratuity Scheme and Leave Encashment facilities) Being shift system the gap of the employee on leave is filled by substitute employee.


Workers are provided by Dust Allowances: Operators are given Maintenance Allowances ; Soap, Towel and all floor shop workers are given Washing allowances and also Canteen allowances are given to each employee. Area wise distribution of workers

PRODUCTS Type of Milk Product sold: Sr. No. 1. 2. 3. 4. 5. 6. 7. Name Of Product Shrikhand Chach Lassi Flavored Milk Ghee Butter Curd

Types of milk sold: Name Of Product High Fat milk High Fat Milk STD Milk Tonned milk Packing 1000ml 500ml 500ml 500ml Agency Rate Rs. Ps. 33.00 14.50 12.60 9.00 Retail Price Rs. Ps. 34.00 15.00 13.00 10.00

Competitors of Goa Dairy 12

Nandini Mahananda Warana Mayur Bounce Amba others

Strategies Adopted to face the Competition Strategies adopted to face the competition in the market by the Union are by providing high quality products at reasonable prices and creating a confidence in the mind of the consumers. For e.g., Doctors prescribe Goa Diary for babies as they trust it to be the purest form of milk. The Milk Booths & Milk Centers are also influenced by providing refrigeration facilities for the milk/ milk products.

Competitors distribution set up: 2 brands from Govt. i.e. Nandini and Mahananda. 13 brands from private co- operatives Milk is lifted from the dairy, Supplied to agents and then retail points. There is cut throat competition between all competitors. Competitors give High margin to retailers

Financial status


The Union is monetarily sound & never incurred losses but it has been enjoying surplus profit every year. The Union has never taken loan from any finance institution in order to meet its financial requirements and therefore it has been confidently said by the financial manager that the union is a self dependent. It has taken loan recently from NDDB only to meet the expenditure regarding the further expansion of the plant. The amount of loan taken from NDDB is Rs.94354975

Market Share
Brand Goa Dairy Nandini Mahananda Arokya\Hatsun Warana Gokul Swaraj Goan Others Total sale per day Sale 73000 47000 18000 14000 7500 8300 8500 12500 31200 220000 33 21 8 6 3 4 5 6 14 100 %


S alesin %
Goa Dairy 14% 6% 5% 4% 3% 6% 8% 21% 33% Nandini Mahananda Arokya\Hatsun Warana Gokul Swaraj Goan Others

Porters five forces

1) Threat of new entrants: is high because there are no entry barriers.(De- licensing during liberalization) is moderate because for some people Capital Requirements are high where as for some people like Reliance Industries it is low. Access to an effective distribution channel is a barrier for new entrants because a carefully knitted channel strategy wills not only an edge but also preserves the freshness of perishable items. Product Differentiation (Logic for Brand Preference):


Once the brand image is formed, than it is difficult for any other firm to introduce new brand into the market so unless and until it has low price and superior quality. Government policies is a Barrier to entry from different licensed and registered companies which are already dealing in drinking purpose products and especially on national level in terms of environmental friendly packing along with the recyclable form of material used.

2) Bargaining power of customers: is high because of various available brands.

3) Competitive rivalry: is high because of different brands and local players. is again high because Customers switching cost is very low. is high because of High exit barriers. Huge investments of financial, human and marketing resources are required to enter in this business because of need for plants which can produce quality with consistency and need for procurement at high level. After obtaining such plants it takes years to recover the fixed costs and to breakeven so rivalry tends to be more vigorous when it costs more to get out of a business than to stay in and compete.

4) Bargaining power of suppliers: is low because the suppliers are rural milk producers.

5) Threat of substitute: is low because of lack of availability of substitute products.


SWOT ANALYSIS OF GOA DAIRY STRENGTHS: Demand: The demand for Goa Dairy Milk in Goa is high compared to competitors. Technical manpower: Professionally-trained, technical human resource pool, built over last 30 years. Mnemonic Sign (Logo): Goa Dairy is branded with a mnemonic sign by the NDDB for keeping its standard quality. This sign marks the quality of product in the minds of customers this helps to sell their product in Goa. Availability of raw material: Presently the raw milk is abundantly available, if it is less in Goa they can also procure as much as raw milk they want from outside states. And in Goa from last five years the procurement is also increased because of many programs organized by the GOA DAIRY. WEAKNESS:

Perish ability: Pasteurization has overcome this weakness partially.

Difficulty of procurement: Inadequate supply of milk and improper infrastructure.


Problematic distribution: It is distributing its products through contractors who are not the employees of Goa Dairy.

Limited Scope for production As the capacity of the plant is less there is a limited scope for increase in production.

OPPORTUNITIES: Line extension: There is a phenomenal scope for innovation in product development, packaging and presentation. Given below are potential areas of value addition:

Steps should be taken to introduce value-added products like ice creams, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building. Addition of cultured products like yoghurt and cheese lend further strength both in terms of utilization of resources and presence in the market place. Yet another aspect can be the addition of infant foods, geriatric foods and nutritional. THREATS:

Competition: Milk production is a monopolistic competition so many new players enter into the market.


Unavailability of milk in the market: Goa Dairys processing capacity is restricted to 1,00,000 liters. But there is a demand of almost 2,40,000 liters in Goa because of which the customers switch to other brands. This can become a serious threat to Goa Dairy in future.

Selling at higher price by the Milk Centers: Today milk Centers are selling the milk at higher rate. For e.g. if Goa Dairy sells milk to milk centers at Rs.10.00 then they have to sell it to the Rs.11.00 by keeping Rs 1 commission on half liter. But they sell it to the customers at Rs. 12.00. By selling it for higher price, customers feels that Goa Dairys milk is expensive, forcing them to shift to other brand. Goa Dairy has no control over the Milk centers to restrict them from doing this.







Persona l





Marketing Officer

Assistant Manager

Personal Officer

Assistant Manager








Live Stock Supervisor


Assistant Manager

Field-Sales man


Account Assistant


Senior engineer

Field-Sales man

Junior supervisor



Supervisor Clerk Milk technician Keeper 20 Clerk Electrician

Departmental study at the factory

Following are the departments mentioned in with detailed study. How every department in an organization functions, and what are the procedures involved is very important to be noted, in order to study the overview of the organization.


Introduction The Personal Department takes care of all recruitment & training of employees in the Union. This department is responsible for providing all schemes and facilities from Union to the employees like providing transport facility, apron, towel, soaps, shoes, provident fund, Chaturthi bonus, ESI (Employee State Insurance) etc. Departmental Head He is responsible for the personal management, training, safety and security of all employees etc. Functions of Personnel and Administration To maintain entire pay roll, rules and regulations of the company. This department also acts as a timekeeper as they have to calculate and maintain Daily Attendance, and other personnel files records. Handle all legal matter. This department also does the recruitment of employees, and plans for training of employees. RECRUITMENT OF EMPLOYEES The recruitment process is all done by publication in the newspaper and also through verbal advertising where applicant give application for the job.


PROCEDURE Department heads put forward the proposal for additional supervisors in the proposed budget along with justification. Based on approval from GM (general Manager), HR (Human Resource Manager) will initiate recruitment. Applications are forwarded to the concerned dept head. In case the concerned dept head does not find any application to be suitable to the requirement of the job Hr Manager will take the decision regarding the external sources of the recruitment/ whether to advertise on newspaper. The concerned dept head and HR Manager will conduct interviews. After getting approval from him HR Manager will hold salary and perks negotiations with candidate.. The candidate will be confirmed in the services

This is mostly done by looking at the qualification, Work experience of the candidate applied for the job. Even communication skills, , Knowledge, Understanding, which are looked upon by the company before selecting the candidates. JOB PROFILE OF HR DEAPARTEMENT Personnel Manager 1. To assist MD in overall General Administration of the Union Human resource Development, Labor Welfare, Legal Matters. 2. Submitting proposal for promotion, recruitment of staff & placing the same before MD. 3. Prepare seniority list of all cadres of staff as per existing Rules with the approval of MD. 4. Arrange for maintenance of service Register, Personnel Files, confidential reports & leave account of all the union staff. 5. Assist MD for the employment of contract laborers as & when demand rose from respective department.




Assist MD to deal with all the matters pertaining to the employees labor union & shall attend conciliation meetings & also labor matters in the labor court.

7. Look after correspondence with the Govt. /Private agencies on matters relating to administration / legal matters. Further to maintain liaison with the Govt. & Registrar of co-operative Dept. to obtain recent circulars & notifications issued by these & place the same before MD. 8. Assist MD in maintaining perfect discipline within the office complex while on duty & maintain punctuality & wear uniforms. 9. Assist MD to initiate disciplinary proceedings against the employees & ensure that such proceedings/ domestic inquiry are carried out & completed in due accordance as per the rules applicable to our Union. 10. Looking after purchase requirement for the HR dept. & also for the Administrative use/ MD by indenting/ putting purchase requirements to purchase dept. 11. Making proposals as & when directed by MD & getting it recorded on the proposal & consumable register. 12. Keeping records of books on the books register as & when books are purchased for office use. 13. Assisting MD & all other Departmental Heads in preparing agreement, replies etc as & when requested by them.

Departmental Structure




Introduction The main role of this department is to collect the financial data from the various departments such as the procurement, personel, production etc. and the payments are made as per their needs .This department makes payments to societies according to the data given by procurement and quality control lab. Functions of Finance Department Payroll preparation and disbursement. Budgetary control. Verification of all transactions. Preparation of financial statement. Maintaining books of accounts. Making timely payment to contractor, farmers etc. Timely payment of salaries to the employees of the company. Completing Income and sales tax Assessments. Payment to Government dues. Departmental Head His duties & responsibilities are to see that all the business transaction to finance are prepared in proper manner. He keeps overall control on all accounting functions and ensures timely service to other departments within the limits of companys policies and guidelines. At the end of the each financial year, he finalizes the financial 24

statements, prepare a report stating the financial position of the Union and submit it to the managing director. DEPARTMENTAL STRUCTURE




CLERK Introduction It has seen that the local procurement is increasing at a phenomenal speed during the past five years. This is because the Union has implemented several schemes in the interest of milk producers which has shown excellent outcome in milk procurement. The collection routes are reorganized and time was revised so that the milk reaches at exact time at R.M.R.D (Dairy Plant). The milk is procured from 175 Co operative Societies. To enhance milk production, Union is giving a reward according zone wise to milk producers whoever is supplying highest quantity of milk. Functions of Procurement To make provision for bringing the milk from societies to the manufacturing plant. To revise the milk collection time if necessary so that it reaches at specified time at RMRD (Dairy Plant). To implement the different schemes and programs like Women Leadership Development Program, Group Insurance Scheme, Education Support Scheme etc. To organize Awareness & Education Programs for spreading the clean milk production in the societies.


Method of Procurement Goa Dairy collects the milk through hired vehicles from all over Goa spread over 171 dairy societies covering over 20,000 families twice in a day. According to the feedback from Quality Control Lab, the price is decided & paid to the farmers. If the milk contains high fat, then dairy pays more to the farmers. The payment to the farmers is made fortnightly.

Payment According to the feedback from the Quality Control Lab about quality of milk the prices for milk is decided & paid by dairy to the farmers. If the milk contains high fat then dairy pays more prices to the farmers. The payment to the farmers is made fortnightly in their account. DEPARTMENTAL STRUCTURE






Purchase Department
Departmental chart

PROCEDURE OF PURCHASE DEPARTMENT 1. Receive purchase requisition from store\ User section 2. Float enquiries for required items through emails, Inquiry letters and verbal intimation. 3. Receive rate quotation from supplier. 4. Prepare comparative statement. 27

5. Take Technical opinion from user Department incase of technical requisition. 6. Drafting and preparation of purchase order through system. 7. Approval of Draft purchase order from Managing Director/ General Manager. 8. Dispatch of purchase order to selected supplier. 9. Material Follow up with the ordered item. 10. Receiving and inspecting material. 11. Checking and passing of bills for payment. 12. Other function of purchase Department which runs the purchase department smoothly are as under: A) Timely supply schedule- To make continuous availability of material, so that there may be uninterrupted flow of material for production. D) Negotiation skill: To make purchase competitively and wisely at the most economical prices. c) Material Planning/ Budgeting: To make purchase in reasonable quantity to keep investment in material at minimum. D) Strict on material control quality: To purchase proper quality of material to have minimum possible wastage of material and loss in production. E) Vendor relationship development: To develop good relationship with vendor this will ensure the best term of supply of material.

Introduction The Production Department of Goa Dairy is separated into two divisions. 1. Processing Division 2. Quality Control Division Processing Division looks after the production, packaging and storage of milk and milk products .The Division handles 90,000 liters of milk per day and produce the products like Standard Milk, High Fat Milk, Homogenized Milk, Flavored Milk, Lassi, Curd, Chach ( Masala Tak ), Cream, Butter & Ghee. The total of each product is as follows i.e. 28

STD=140000 packets of 500ML Per day, High Fat =15000 packets Per day, Chach (Masala Tak ), Flavored Milk, Lassi, Curd Cream, Butter & Ghee depend on seasonal Demand. The Goa Dairy also has a chemical and bacteriological lab to examine the quality and fat content in the milk. Functions of the Production Department To manufacture milk and milk products according to the given procedure. To maintain the registers like e.g. production planning registers, daily production register etc Technology The machinery and equipment used in Goa Dairy are good & with state of the art facilities. Regular maintenance, checking and timely replacement of the machinery is done. The variety of machinery and equipment used in the process of milk and milk products are HTST ( High Temperature Short Time ) , Packing machine from the Micro Company ,Pasteurization machine from Micro Company , Computers from Wipro Company , small measuring and sealing machines , chilling tank and storage tanks. The capacity of these machines per hour is as follows: Chilling capacity - 20,000 liters Pasteurization capacity 10,000 liters Packing machines 9000 packets. The Production Process can be shown below using a Flow Chart


Process of Production Milk from all over Goa spread over 175 societies covering over 20,000 families is brought to Goa Dairy through hired vehicles twice in a day. Milk is procured in Stainless Steel cans of 40 liters each


& are offloaded manually on a conveyer belt that takes to the inspection point. At the inspection point cover of cans are removed manually and milk is inspected. The milk in the cans is graded, poured, measured by weight, sampled and bulked to provide continuity of supply to the pasteurization equipment. On reception dock each and every milk cans are brought together for grading in a definite order, according to each society. The milk is graded and tested for price fixing purpose. The grading is important because the superiority of the finished product depends on that of the raw milk used. There are some platform tests for inspecting raw milk. An experienced milk grader verifies and decides the acceptance or rejection of milk from each society, based on the odor test. Other tests for appearance, sediments, acidity (sourness), adulteration etc. are done at the Quality control Lab. An exact and representative sample of milk is taken for succeeding bacteriological and chemical analysis in the lab. All the samples are tested in the quality control lab for the final decision of acceptance or rejection. The documentation of the chemical and bacteriological quality of all accepted milk is maintained for making payments. The milk received at the inspection point is poured manually into weight tank suspended from a weighing machine discharge valve for rapid emptying. This is a necessary step in accounting for milk receipts and disposals, making payments for milk producers. The weighted milk is then released into a dump tank placed immediately below the weight pan, from this tank then the raw milk is pumped continuously to raw milk storage tanks. To improve the aesthetic quality of milk, before storage all visible unknown substance is removed from the milk by passing the milk through the clarifying assembly. 31

Then in raw milk storage tanks the milk is Chilled & stored. This is done to control the growth of bacteria. There are three storage tanks of 5,000 liters each and five storage tanks of 15,000 liters each in the processing plant. After chilling the cream from milk is separated with the help of cream separator i.e. (Centrifugal Machine). Then the fat level is adjusted, this process is called standardization, according to the milk produced for e.g. Std. milk will have 4.5% fat where as High Fat milk will have 6.5%. Then in pasteurization process, the milk is heated to 75 C and then within few seconds the temperature is brought down to 4 C. In this technique of pasteurization, the pathogenic bacteria which are there in the milk get killed due to rapid increase and decrease of temperature. The pasteurized milk is afterward sent to the refrigeration store tank in order to maintain its quality. Then afterwards before packing, the milk from refrigeration store tank is moved to small tank attached on top of the filling machine to get the force of gravity. Packing of Milk Then the milk is packed with the help of flexible polymer packaging films. The film is a polymer of low density poly-ethylene & it is procured from Bicholim, Daman and Kolhapur. Filling machine follows a form fill seal system. The filling machine prepares milk packets of prescribed sizes i.e. 500 ml and 1 liter. Sampling and testing of packed milk is done every half an hour. Packed milk is staked into crates and passed over the conveyer belt to warehouse rooms before it is sent for distribution. In warehouse room all milk packets are exposed to cool air at 5 C for preservation. The warehouse room is insulated from all the sides.

Flexible polymer packaging films Working hours of Production Department 32

The production is going in two shifts, first shift starts at 7.00am & ends at 2.00pm. And the second shift starts without wasting any time i.e. from 2.00pm to the 9.00pm. Hygiene in Production Department Cleaning of can washer and create washer. Cleaning of milk storage tank in a week. Cleaning of cans everyday. Cleaning of road tanker. Washing of Ghee kettle everyday. Washing of floor daily. Washing of walls. Washing of pipe lines. C.I.P of pasteurizers. Cleaning of utensils used for production daily

Some ways of maintaining good hygiene and sanitation at the production centre are as follows: Pest control treatment is done once in 15 days. Manual cleaning and sweeping is done on Wednesdays and Saturdays. Workers are made to dress up in white clothes so that the dirt is identified which prevent contamination of milk. Visitors are not allowed to enter in the Production Centre. The Dairy has visitors gallery from where they can see the production process. The workers are asked to wear gloves and plastic cover for their head so as to prevent hair falling. Regular checking is done of workers nails and cloths. Proper toilet facilities are provided to the workers and they are asked to use soaps to keep themselves clean.


Introduction Goa Dairy has a good mechanism for producing Quality of milk & milk product. And with this intention NDDB has offered Goa Dairy a Mnemonic Sign. Mnemonic Sign signifies 33

Cooperativeness & Quality of Milk. This quality of milk creates a confidence in the minds of the customers that the money spent on buying of the milk is worth. To maintain confidence, the selling of quality milk turn out to be the main function of the Producers. In order to provide quality milk as per the mnemonic sign conditions, regular tests have to be conducted. For this purpose, the Goa Dairy has a Quality Control Lab. This lab was established on 19 th June 1971. Functions of Quality Control Lab To check the quality of raw milk & finished products and give advice to production department. To accept customer complaints, study, analyze, and then take corrective and precautionary action. To verify whether the quality of finished produced milk is as per the mnemonic sign conditions. Procedure followed by Quality Control Lab The system followed in the milk testing while undertaking Quality Control function is given below: First of all when the milk is brought at the dock, samples are taken in small white plastic bottles and also in the test tubes. These samples are taken to the lab for testing by the employees. After milk testing if the results are positive, permission is granted to pour the milk in storage tanks. After Pasteurization, once again the milk samples are taken to confirm whether the milk is pasteurized properly. If the outcomes are positive, permission is granted by the lab for further processing. Lastly, after the milk processing, packaging is done. Then packed samples are taken randomly in order to make sure that the quality of milk is good, and if the results are good permission is given to dispatch the products in the market.



We commit ourselves to procedure pure, clean and hygienic milk from our members, societies as well as from other sources and process the same scientifically in a hygienic environment in order to supply fresh and quality milk and milk products to the customers at most satisfaction at competitive process. WE WILL STRIVE HARD TO CONTINUALLY IMPROVE OUR PERFORMANCE THROUGH THE PARTICIPATION OF ALL STAKE HOLDERS.


Procurement of pure and fresh milk. Processing the same scientifically. Supply of fresh and pure milk products to customers. Supply Milk & Milk products at competitive prices.

Achieve utmost customer satisfaction. List of standard operating procedure Sampling of raw material Sampling of finished goods Retaining of raw material samples Retaining of Finished goods samples.

The different machines and equipments used for testing the quality of milk are as follows: Electronic milk testing machine: This machine is used by the Quality Control Lab to test the amount of fat content present in the milk. Gerber Centrifuge: This machine is used as a part of testing the quality of milk. Electronic Weight Scale: This scale is used to check the weight contents of milk. Microscopes: are used to check the minute organisms present in the milk which we humans cannot see with our naked eyes. 35

Laminar Air Flow: This machine is a sterilizing machine .It is used to sterilize all the apparatus used to test the quality of mil

The following apparatus are used for testing milk: 1. Electronic colony counter 2. PH meter 3. Autoclave (sterilizer) 4. Hot air ovens 5. Insulator 6. Distillation assembly 7. hot plats 8. Water bath 9. Designator.

IMPORTENCE OF COLD CHAIN IN MILK The term market milk refers to fluid whole milk that is sold to individuals usually for direct consumption. It excludes milk consumed on the farm and that used for the manufacture of dairy products.

Average composition of milk


Constituents Water Total solids Fat Solids not fat Proteins Lactose Ash

cow milk % 86.36 13.64 4.90 8.74 3.4 4.6 0.74

buffalo milk

% 83.22 16.78 7.30 9.48 3.8 4.9 0.78

MICROBIOLOGY OF MILK Nearly all the changes which take place in the flavor and appearance of milk after it is drawn from the cow are the result of the activities of microorganisms of these the most important in dairying are bacteria, mould ,yeast, and viruses. Microorganisms are visible only with the aid of a microscope. A few are desirable while most cause undesirable changes and relatively small proportions are disease producing types and are called pathogens. Spores of bacteria are resistant to pasteurization but spores of yeast and mould are destroyed during pasteurization. Growth of micro-organisms - In microbiology growth refers to increase in numbers. Milk drawn from a healthy cow already contains some bacteria their number multiply during production and handling depending on the cleanliness of these operations. Subsequently their number may grow still further depending on the storage conditions. The process of pasteurization was named after Louis Pasteur who discovered that spoilage organisms could be inactivated in wine by applying heat at temperatures below its boiling point. The process was later applied to milk and remains the most important operation in the processing of milk. Pasteurization means a drop of milk to be heated at 73 deg C for 15 seconds & to cool the milk by way of flash cooling unto 4 deg C immediately so as to kill all undesired micro organisms and also to retain all vitamins, proteins & minerals in milk as it is. The 37

pasteurization is an invention & it is invented by the great scientist called Luis Pasteur. Pasteurization of milk plays important role for reducing the microbial flora in milk. Purposes for the process of milk pasteurization in Goa Dairy: Public Health Aspect - to make milk and milk products safe for human consumption by destroying all bacteria that may be harmful to health (pathogens)

Keeping Quality Aspect - to improve the keeping quality of milk and milk products. Pasteurization can destroy some undesirable enzymes and many spoilage bacteria. Shelf life can be 7, 10, 14 or up to 16 days. DEPARTMENTAL STRUTURE

Managing Director

Senior Chemist


Chemist Assistant


Milk recorder


Skilled worker


Stores Department
Objectives 1) Issue material as per indent in shortest time. 2) Prevent wastage of materials 3) To keep paper inventory


PROCESS FLOW CHART 1. Material Receipt Purpose 1) To receive quality material as per required specification 2) After security entry same material comes to store section. 3) Store section check challan or bill 39

4) Store section check the material physically whether as per challan and as per purchase order. 5) After Physical check material he sent to concern section along with challan and inspection slip or materials received register for necessary verification and stock entry is taken In material receipt register file. 6) After verification of materials from concern section store section send GRN indent and bill sent to purchase section for further process. Different items are stored in their concern section. Reference Material receipt register, Good received register, GRN slip file 2. Physical stock verification Procedure 1) Office order from higher authority 2) Stock register check 3) Physical stock verification by concern authorized person 4) Prepare stock verification and statement 5) Verification statement submit to higher Authority Reference: Order from MD, Stock verification statement, Stock statement file 3. Material Inspection Purpose 1) To check quality and quantity of as specification Procedure 1) Purchase material physical cheek by store section 2) Store section inform to user section 3) Store Section sends material and material inspection slip for checking of material 4) User section returns the slip after signature 5) After inspection report take entry in GRN register Reference: 1) Material Inspection report file, Good receipt Register, GRN slip file 4. Issue of Material Purpose To issue material as per indent in time Process 1) After receiving of indent or request letter from user section 2) Verification of indent and correctness of indent is done. 3) Issue the mentioned material in the indent section after receiving sign. 4) Same issue entries poster in issue register\stock register. Reference 1) Indent file 2) Material receipt registers 3) Material Issue register \ stock book


5. Material storage Purpose 1) Material store in proper place Procedure 1) Make GRN after inspection of material 2) Accepted material is issued as per purchase order 3) Rejected material kept separate or returns separately and informs to purchase section. Accepted material stock in proper order 4) Received material taken in stock material Ref. Material receipt register. Goods receipt register. GRM slip file. 6. Scrap disposal Purpose 1) Scrap disposal to prepare channel Procedure 1) Calling of quotation\ tender from different parties for the financial year 2) Fixing the last date of receiving quotation\ tenders 3) Opening of seal tenders\ quotations 4) Preparing of final list (make comparative statement) 5) Sending the list of quotation along with comparative statement for approval 6) Informing the highest bidder to lift material with stipulated period. 7) Issuing the material to the party after full payment against delivery challan and cash receipt from accounts section 8) Issue the gate pass security copy of delivery challan

Introduction Milk Union is providing the Animal Husbandry & Veterinary Services since healthy animals are the true wealth of dairy farmers. The veterinary department looks after the development & health of cows & buffaloes in the state. The main objective of this department is to increase the milk productivity by imparting training to farmers, to organize educational programmes to all the farmer members (i.e. Milk producers of Goa State Cooperative Milk Producers Union) & encourage them all for rearing the milk animals with related activities. Functions of the Veterinary Department To cater service to members of Goa dairy in terms of input activities and training. Providing health treatment & medicines for milk producing animals. 41

Implementing different schemes and programs to the members. Encouraging the farmers for rearing milk animals.

Departmental Head The overall implementation and observation of different schemes, programs & services to members of Goa Dairy pertaining to veterinary department. Providing emergency services in terms of health & artificial insemination, medicines to the milk producers at subsidized rate. Organizing infertility camps & training programs at society level.

Future plan of this Department To increase productivity of milk and maintain quality.

Introduction The Union has been able to create its brand image both in milk and milk products. Milk has shown a remarkable growth of 6 to 8 % over the previous years. This was viable for the union because of the hard work and pains taken by the employees to improve the quality and distribution of milk and milk products. The main emphasis was given on reaching milk and milk products to the customers as quick as possible. The customers are served through several booths and centers which are spread over urban and semi urban regions. More and more efforts are done to increase the sales network and to cover up more areas and also to improve on the accessibility of milk and milk products wherever they are in scarce. Functions of this Department 1. To market the products of Goa Dairy throughout Goa. 2. To arrange vehicles on contract basis for distribution purpose and distributing the routes to them. 3. To set up milk booths, other sale outlets all over Goa. 4. To reduce the cost of transportation by reorganization of supply routes. 42

5. To advertise the products of Goa Dairy through all possible ways. 6. To build the brand image of Goa Dairy in the customers mind. 7. Proper implementation of the schemes. 8. To see that the demand for the milk & milk products are met on time

Main objective of Marketing Department To access the reason due to which sales of Goa Dairy have not been increasing although they have good infrastructure, good agents, good supply chain, reasonable rates and good quality products. Sub Objectives To find out the various reasons for consumer preferring other brands To determine whether any original Goa Dairy consumers have switched to the other milk brand and reason. To determine why there are less Goa dairy consumers in Vasco? To find out whether Goa Dairy Milk Booth owners promote the Goa Dairy Products and if not the reason for doing so.

Head of the Department His duties & responsibilities are to look after all the marketing aspects of the Union. His duty is to fill up the gap between the demand and supply by taking suitable and appropriate action. Besides that he has to also see that all the vehicles which are engaged in the delivering the finished products are reached on time and delivery of milk and milk products are also made on time to booths & milk centers. Brand name of the Union The Union sells all its products with a brand name called Goa Dairy. This brand name of Goa State Cooperative Milk Producers Union Ltd. has been suggested by the government in the year 1981 since this Union was the only milk/ milk products producing firm in Goa. Mnemonic Symbol (Logo) of Goa Dairy


With a view to facilitate cooperative societies to survive highly in competitive market of milk/ milk products, NDDB (National Dairy Development Board) had decided to assign Mnemonic symbol to be used on the milk packing of selected cooperative who maintain national standards in their products. The Union had been assigned the Mnemonic sign as a symbol of cooperativeness & quality of products. This was an indication of the Union success towards maintaining good quality of milk. This logo comes into practice in the year 2001 for Goa Dairy. The logo/mnemonic symbol has placed milk and milk products of Goa Dairy at a higher rank than other brands competing in the market. Market Share Goa Diary is leading the market with 35% of the market share. Goa Dairy USP (Unique Selling Proposition) Quality of Milk/ Milk product at reasonable price. Expanding Marketing Standardization of color, logo and retail outlet design across regional cooperative brands with a view to create brand awareness among consumers under a common mnemonic umbrella. Introduction and improvement of marketing systems and processes necessary to perform better in a competitive market place. Channel of Distribution Goa Dairy (Manufacturer) Retailer Consumer

Goa diary distributes its product through its booth as well as general retailers; there are about 35 routes who supply product to the retailers and booths. Booths are the retailers which are run by local people but financially supported by Goa diary. They sell Goa dairys product from a particular time. The sale of milk/ milk products is being carried out through 35 routes with 35 milk distributing vehicle each vehicle for each route. Vehicles such as tempos are engaged for the distribution of the milk/ milk products to the distant places in Goa. 30 routes distribute the 44

milk/ milk product in the evening while 5 routes distribute in the morning. To sell Goa Dairy milk / milk products thee are 175 Milk Booths & 697Milk Centers. The demand for the milk and milk products of Goa Dairy is met as per the demand slip. There are two shifts of loading the tempos & sent to the Milk Booths & Milk Centers ultimate consumers / dealers. In the evening 5 vehicles (tempos) are loaded with milk packets between 11.30 to 12.00 leaving to the routes of Panjim, Canacona, Aldona, Siolim and between 12.15 to 1.00 vehicles are loaded leaving to the routes of Vasco, Mapusa, etc. In the morning 35 vehicles are loaded with the milk packets and leave to the other distant places of Goa. The Union does not supply milk to the neighboring states of Goa but takes the supply of raw milk from the neighboring states like Maharashtra, Karnataka & Andra Pradesh. The carrying of each tempo is 6,300 liters of milk. The milk is supplied to the dealers and to the booths of Goa Dairy which are situated at almost all over Goa region. The Union does not appoint salesman to sell its products, this is because of simple reason that the milk is supplied directly to the retailers and to the booths of the Goa Dairy which is situated in almost all the areas in Goa and does not face any problem as far as channel of distribution is concerned. The original copy of the demand slip is kept with the marketing manager and duplicate copy is issued to the milk booths & milk centers. As show in the above format of the demand slip, the details of the products such as, the type of product demanded whether it is ghee, standard milk, high fat milk, butter, etc. & the quantity or the number of units each milk product to delivered etc. are mentioned clearly in the demand slip which enables the union to supply their products to the milk booths & milk centers at right time. Reach The Goa Dairy Network. Includes 178 milk societies for procurement of milk. Operates all over Goa by having vending milk booths 175 & 697 milk centers. Covers nearly 20,000 farmer families as their members.

Advertising of Milk/ Milk Products In order to keep up the heavy competition, there is a need for attractive advertising for every successful organization. Goa dairy also advertises its various products in the different


advertising Medias. Annually Goa dairy spends around One lakh rupees on advertisement. Advertising medium adopted by Goa Dairy are as follows. Press advertising Painting on vehicles Painting on shops etc. Seminars on dairy milk

Among all the mediums of advertising, it has been found that advertising by painting on vehicles is the most attractive and the cheapest form of advertising. They have recently started one more advertising method that is giving seminars to the school children those who visit the Goa dairy as part of their study trip. Sales Promotional Instruments Sign boards Banners Booth painting Flex Board Sun Board Stickers

Sales Promotional Strategies Collection of Empty Packets (Schemes for the Buyers) The incentives are also given to the consumers on collection of any 60 empty milk packets of Goa Dairy. If an individual collects 60 empty packets of standard milk or high fat milk, then these packets are exchanged with 1 milk packet to the individual. The collected empty packets are not used again for the packaging & these empty packets are sent for recycling. Objectives of collection of empty packets: Firstly, to serve the society with a clean, friendly & plastic free environment caused due to Goa Dairy disposal packets. This indirectly influences the customers towards building the Unions reputation in the market.


Secondly, the Union receives the benefits of gaining information about the consumption of milk of Goa Dairy from each family & of that particular area. This helps the Union to predict the sales, to produce milk and to deliver the certain number of products by arranging the suitable channel of distribution for that area.

Storage Facility provided to the Milk Booths & Milk Centers Delivering of the finished products to the milk booths & milk centers is not the last resort of the marketing function. In this intense competitive market, it turns out to be very crucial for any flourishing organization to tackle the troubles faced due to competitors. By keeping this in mind, the union also cares for the milk booths & milk centers for the storage problem faced by them. In order to tackle this problem of storage facilities on the milk booths & milk centers, the union has offered the refrigerators to store the products of Goa Dairy. Credit Facilities given by the Union The Union provides credits facilities to hotels & to the governmental organization such as schools, colleges, hospitals etc for a period of 15 to 30 days. The Milk Booths & Milk Centers are also influenced by providing refrigeration facilities for the milk/ milk products. Incentives provided to the contractors & Milk Booths & Milk Centers. The Milk Booths & Milk Centers are given commission as 40 paisa per liter on milk. While contractor gets the commission of Rs. 7 on the sale of per Rs. 1000 & Rs. 6 per km, sale & 2 paisa per liter, gets always whether the milk packets get leak or not.


The consumer will be educated through our awareness programme with the help of one mobile laboratory. Also the school children visiting dairy plant [Appt 25000 annually] will be given basic information regarding milk and milk product as regards to the quality, nutritional value and its importance in respect to health. For this a hall within required space is proposed for construction having necessary sitting arrangement, accessories and equipments like LCD. Problems Faced by Goa Dairy while Marketing 47

Breakage of milk packets while loading & unloading the vehicles. Transportation and maintaining cold sanitation during the summer season, etc.

Strategies Adopted in order to overcome the Marketing Problems To reduce the breakage, the employees have adopted vertical placement of milk packets in the crate. Old vehicles are replaced by insulated vehicles to maintain the temperature.

Other Our Marketing Strategy

Rout wise Study of Our Market: Thorough rout wise study will be conducted to find out root causes of our short supply to the booths and other centers to eliminate non availability of our milk in the market. Consumer awareness programme: We will be having pamphlets with details of our milk processing activities and quality conscious activities so that we can educate market about our product pure and freshness quality compare to other brands in the market. Documentary Film Presentation Programmers: As a part of Consumer awareness programme, Documentary film will be prepared and presentation to the consumer at various places like in all the Schools, Colleges, Panchayats, Mahila Mandal etc. Annual Contract Uniform Prices: We will try to maintain fixed annual rate to all the hotels and Industrials Canteens who are buying regularly from us with a large volume. Regular Study of Competitors Areas: We will identify our competitors market and Increase our Advertisement and other promotional activities aggressively in that area to achieve our Goal. Maintenance of Quality through Cold chain System: Possibly most of the centers and booth will be provided freezes to maintain our cold chain temperature so that the quality of our milk can be maintained as per our standard. Demand Slip Compulsion: demand slip for the sales man will be made compulsory in order to get exact demand for the production schedule Contactor Meeting: Regularly meetings of the Contractors will be held to obtained information in order to find out decrease of our sale from the respective sales centre or any booth, so that we can immediately find out the reason for the rectification Booth Timings: Preferably timing of our booths to be increased from the existing one and preference will be given to those who can keep our booth open for the whole day CUSTOMER COMMUNICATION All modes of communication are used namely Verbal, Letter, Telephone, Mail Letter, Telephone, Mail. 48

Feedback collected and analyzed by management. Customers complain will be register and handled by Assistant Manager & will be table in MRM for review.

HEAD OF THE DEPARTMENT His main duties are to take care of all Machinery & computer at the plant. He also does the check up of machine according to the schedule. Whenever the new machinery is set up the responsibility of his is to see all the employees are well informed about new machinery. FUNCTIONS OF THIS DEPARTMENT This dept. takes care about the safety of the employees & also provides better working facilities to them. When new machinery is introduced the responsibility of this dept. is to see that all the employees are well informed about new machinery & its functioning. To provide with steam supply. To provide continuous electrical supply to all the sections of the factory. Maintenance of all machines & equipments. Maintenance of all surroundings related to the organization.


As two months flew by, my internship just concluded with effect from today. I am glad to have undergone this internship because it taught me a few important things and also got me to explore my own interests. My internship taught me a lot of things and I also got to meet a lot of nice people. Somehow, I feel really lucky that I always get to work under nice bosses and that makes everything a whole lot easier and happier. All of the colleagues in the team had also helped me one way or another either through my work or to create a better work environment. Contrary to my initial expectations, I totally enjoyed my internship and also learnt a lot of things. With the conclusion of my internship, I have a few things to embark on full-time and I am still in the process of prioritizing which to focus on and may be dropping some load off my back. It is hard to make a decision when my interests are so varied, but I still have some time left to decide. For now, I need to clear up all the pending issues that have been left behind when I was doing my internship. My internship ends, but more work is coming. 50