Report on

Industrial Visit
to
MOTHER DAIRY

Patparganj, New Delhi.

on January 9th, 2012
Submitted to:
Prof. Sadiqur Rehman

By :

Sahil Manchanda
PGDM-IB (2011-13)
Roll No: FT-IB-11-339

Table of Contents

Page 1

S.No.

Particulars

Page No.

1.

Preface

2.

Acknowledgement

3.

National Diary Development Board

4.

Mission and vision

5.

Mother diary profile

6.

Products Of Mother diary

7.

Supply Chain Management

10

8.

Suggestions & Recommendations

11

9.

References

12

Page 2

Preface
This visit was organized to make student understand the complete process of supply chain
management of an FMCG organization, Mother Dairy. During this visit, I learn how the
company manage the purity, freshness & nutritious value of milk during various stages. It starts
from collection of milk from farmers from various states, check the Fat & SnF levels and send
that purified and properly checked milk to the main plant to make that a complete nutritious
product for consumers.
I have also examine how some middle-man adulterated the milk by adding Urea & other
chemical liquid to make milk more thinner and less nutritious product to increase their sale &
profit. After that I also examine during this visit how milk is processed and stored in large
storage valves for longer period of time to avoid any shortage during supply.
With addition to this, Mr. Jose also explains us the distribution channel of Mother Dairy and
various places from where consumers can purchase milk easily. For example COW (container on
wheel), its a door to door milk delivery system to consumers, though milk is sold at little bit
higher price as compare to normal Mother Dairy outlets.
Mr. Jose also explained us the hygiene policy maintained by Mother Dairy for their plants,
machinery, storage tanks, delivery tanks and health policy of its employees with routine checkups.

ACKNOWLEDGEMENT
Page 3

With immense pleasure I would like to present my report on visit to Mother Dairy to IILM GSM
Business Engagement Team. It has been an enriching learning experience for me to visit Mother
Dairy plant.
I would like to thank Mr. Jose for giving us a detailed information of each department and
various procedures followed by Mother Dairy for there suppliers,distributors, consumers and
employees as well.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

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The National Dairy Development Board (NDDB) was designed in 1969 on Anand
Dairy Cooperative outlines of creating district cooperative of milk producers at village level
which aim at collection of whatever amount of milk they produce and payment to them
according to the quality of milk they supply. Then this milk is processed and supplied to the
people at metropolitans and other cities at nominal charges.
For about 5 yr., NDDB was dormant till the time they received presents of Whole Milk
Powder and Butter Oil from European Union and came into action with the help of Indian
Dairy cooperation.
Operation flood was started in 1970 under the guidance of Dr. Kurein, Chairperson
NDDB, Anand and Mr. Jamnadas Patel in Khera, Gujarat. The objectives of Operation
Flood are:
To buy the milk from the farmers and villagers as much milk as they
could supply at reasonable prices and keep the price of milk stable whole
year.
To operate, procure, process and market milk and milk products.
Production of good milk after its qualitative and quantitative estimation.
System to eliminate middleman.
Providing technical inputs and services to yield of milk animals.
Organizing an efficient transport system to collect milk from villagers.
Set up of balancing dairies and storage system to convert excess milk to
milk powder and butter oil.
Train personnel to plan and manage the system as well as operate the
services described.
To meet out these objectives, NDDB started dairy plants all over India
and Mother Dairy was one of them. It was set up in 4 major cities at
Delhi, Mumbai, Chennai and Kolkata.
Operation flood was a major dairy development program. Funds were generated by the
sale of dairy commodities donated by the World Food Program (FAO-UN) which assisted
project to carry out its mission.
This included establishing dairy cooperatives in rural milk sheds, setting of animal
husbandry units, constructing modern dairies in cities, organizing storage and long distance
transportation and project planning with manpower development. The first phase of operation
flood was completed in 1979, followed by second phase (1979-1988), assisted by European
Economic Community. Its third phase ended in 1996.

MOTHER DAIRY VISION

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With total commitment and teamwork, we at Mother Dairy shall strive to delight our customers
with quality products and services.
We shall create an environment where employees feel happy to work.
Through innovation, consistent learning and continuous improvement, we shall achieve
sustained growth and excellence and provide remunerative returns to farmers and other
stakeholders.

MOTHER DAIRY MISSION

We are the market leader in fluid milk in Delhi. Our mission is to retain the leadership and
further serve our customers in and around Delhi by providing quality milk and select dairy and
food products.
We shall strive to delight our customers by providing regular and timely services at convenient
points under clean and hygienic conditions, with a product mix for different income segment. We
shall create an environment of teamwork where employees feel happy to work.
By innovation, continuous improvement, training and development and most efficient use of
resources we shall achieve consistent and sustained growth and provide remunerative returns to
farmers and other stakeholders.
Mother Dairy has received the ISO 9002 certificate in 1994 for the quality of its food products.

MOTHER DAIRY PROFILE

Mother Dairy was set up under the operation flood project on second
December 1974. It is equipped with latest technology. Products are
prepared as per the PFA standards.

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The dairy was established on behalf of the Govt. of India, Ministry of Agriculture (Dept. of
Animal Husbandry and Daring). Mother Dairy is being managed by NDDB as a subsidiary unit
retaining its independent character.
For the purpose of managing the dairy NDDB appoints managing committee. All the policy
matters decided by the management committee but the execution of all the policy decision and
management of dairy rests with General Manager.

PRODUCTS
S.No.

Product Name

Brand Name

Items

Page 7

1.

Milk and its Products

Mother Dairy

Packaged
Milk
(Full
Cream,
Standardised, Toned, Double Toned
Skimmed and Pro-biotic), Butter, Dahi,
Ghee, Cheese, Ice-Creams, UHT Milk,
Lassi & Flavoured Milk.

2.

Edible Oils

Dhara

Refined Vegetable Oil, Refined

Soybean Oil, Refined Sunflower Oil,
Refined Rice Bran Oil, Kachi Ghani
Mustard Oil and Filtered Groundnut
Oil.

3.

Fresh and frozen fruit and Safal

vegetable products

Fruits, Vegetables, Rice, Processed

items (jams, juices, ketchup, pulp, etc.)

Mother Dairys has a varied range of products. The different products categories
are explained below:
MILK:
Packaged Milk is available in 5 different variants:
1. Full Cream milk - milk fat 6%, SNF 9%
2. Standardised milk - milk fat 4.5%, SNF 8.5%
3. Toned milk - milk fat 3%, SNF 8.5%
4. Double toned milk - milk fat 1.5%, SNF 9%
5. Skimmed milk - milk fat 0.5%, SNF 8.7%
Other than packaged milk, Bulk Vended Token Milk is also available which is
distributed through vending machines installed in different regions of the city.
The high quality variant of milk is also available under the brand name ok
MILK. It is thick & completely natural, containing no preservations. It is
referred with name of UHT (Ultra Heat Treatment) Milk.
Mother Dairy also manufactures flavoured milk under the brand name of
CHILLZ. It is available in three flavours namely Kesar Elaichi, Vanilla and
Chocolate flavour.
Milk Products:
Various milk products of Mother Dairy are:
1. Mother Dairy Ghee
2. Mother Dairy Butter

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3. Mother Dairy Cheese

4. Mother Dairy Dahi (Curd)
5. Mother Dairy Lassi
Except all these milk products Mother dairy also manufactures Ice Cream under
two categories namely CHILLZ and Mother Dairy Ice Cream.
PROBIOTIC:
It is the latest product range launched by Mother Dairy. It mainly contains BB12 friendly Bacteria which results in better digestion and absorption of
nutrients. It also contains probiotic fibre which also results in better digestion.
The various products in this category are:
1. b-Activ Probiotic Dahi
2. b-Activ Probiotic Lassi
3. b-Activ Curd
4. Nutrifit (Strawberry & Mango)
SAFAL: Range of fresh foods & vegetables, frozen vegetables, fruit pulps and
fruit juices etc.
DHARA: It has a popular range of edible oils in different
types as refined soya bean oil, refined sunflower oil and
filtered ground nut oil etc.

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Supply Chain Management

1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairy
co-operatives and producer institutions. Milk is received from farmer cooperatives
through insulated road/rail tankers at very low temperature in order to retain its
freshness.
2) Milk distribution: -79 tankers in the morning and 75 tankers in the evening bring in
milk from the regional collection centres. After collection the same tankers are
utilized for the delivery of the processed milk to the vendors and outlets. Mother
Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of
these outlets place their demand by raising an invoice one day in advance. The
demand is also calculated using the Calendar Scheme, in this depending on the precalculated seasonal demands the outlets place their orders accordingly. In order to
satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500
litres each day so that they can be mobilized to cater the demand in an area. To
coordinate its operations all the tankers are equipped with HAM radios.
Distribution Channels:
a) Token Distribution: Also, termed as Lohe ki bhains (metal buffalo), is an
automated milk vending machine.
b) COW: Container on Wheels or COW is a manual milk distribution program in
which cycle-rickshaws are employed for milk distribution.
c) Retailers: The packaged milk is distributed via the retailer network throughout
the city.

Processing
At mother dairy, the processing of milk is done by process automation whereby state of the art
microprocessor technology is adopted to integrate and completely automate all functions of the
milk processing areas to ensure high product quality/reliability and safety. There are four ways of
milk processing
Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles that
are invisible to the naked eye.
Secondly, Standardisation which help to milk maintain uniformity by raising or lowering its fat
and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to consumers as per
prescribed PFA norms.
Thirdly, it is Homogenization which improves palatability of milk and
Finally, Pasteurization, which kills all pathogenic bacteria present in the milk and thus making it
safe for consumption.

Page 10

Suggestions and Recommendations

The organisation should have a specific distribution model which should be
followed necessarily by each distributor as at this level not everything is organised
and each distributor follows a different model to distribute milk due to which in
some areas potential sale doesnt happens.
To keep track of the supply timings and to sustain the quality of milk till it
reaches the retailers, company should have a policy for each distributor to keep
vehicles which can maintain the temperature of the milk as maximum distributors
are currently doing the distribution with the help of auto-rickshaws which exposes
milk to the hot air and sunlight.
As there are many regions in the area which consists of low income group, so
the organisation should have a policy to provide them Dry ice Boxes which
can act as a refrigerator. These should be used in these areas as they are cheap and
convenient to use.
There should be an arrangement made available for the distributors so that they
can cater to sudden demand for the milk so that not even a single chance of selling
is missed.
The organisation is way ahead in coming out with schemes for the distributors
and retailers but the organisation should also start coming with schemes for the
customers as it would be a real boost to the sales of Mother Dairy milk and also it
will help MD get back its lost customers.

Page 11

References:

Brochure
Industry Visit

www.motherdairy.com
http://www.nddb.org/institutions/mdfnv.html

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