SUMUL DAIRY

INTRODUCTION OF THE INDUSTRY

CHAPTER CONTENT:1.1 1.2 1.3 HISTORY INDUSTRY DETAIL MARKET SHARE, LEADERS AND PLAYERS

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SUMUL DAIRY

1.1
 the 

HISTORY
Beginning in organized milk handling was made in India with establishment of Military Dairy Farms. Handling of milk in Co-operative Milk Unions established all

over the country on a small scale in the early stages.  Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945.  Pasteurization and bottling of milk on a large scale for organized distribution was started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.  Establishment of Milk Plants under the Five-Year Plans for Dairy Development all over India. These were taken up with the dual object of increasing the national level of milk consumption and ensuing better returns to the primary milk producer. Their main aim was to produce more, better and cheaper milk.

1.2

INDUSTRY DETAIL:
2

SUMUL DAIRY Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. Dairy industry is one of the industries, which plays a dynamic role in India's agro-based economy. Dairy farming includes breeding and care of milk yielding cattle, procuring milk and processing of milk into a variety of dairy products. A dairy product is a major exporting industry and earns considerable foreign exchange for the country. In 1946, the foundation of Anand Milk Union Ltd (AMUL), led to the development of a better organized dairy industry and gave momentum to education in dairying in India. During the earlier years, each household in those countries maintained its ‘family cow’ or secured milk from its neighbour who supplied those living close by. As the urban population increased, fewer households could keep a cow for private use. The high cost of milk production, problems of sanitation etc., restricted the practice; and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually farmers within easy driving distance began delivering milk over regular routes in the cities. This was the beginning of the fluid milk-sheds that surround the large cities of today. Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration.

In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing line between farm and factory-scale production. Various factors contributed to this change in these 3

SUMUL DAIRY countries, viz. concentration of population in cities where jobs were plentiful, rapid industrialization, improvement of transportation facilities, development of machines, etc. whereas the rural areas were identified for milk production, the urban centres were selected for the location of milk processing plants and product manufacturing factories. These plants and factories were rapidly expanded and modernized with improved machinery and equipment to secure the various advantages of large-scale production. Nearly all the milk in the U.S.A. before 1900 was delivered as raw (natural) milk. Once pasteurization was introduced, it developed rapidly. Mechanical refrigeration helped in the rapid development of the factory system of market milk distribution. Dairy industry, now a highly specialized field today involves production, procurement, storage, processing and distribution of dairy products. The main jobs are in the production collection and of processing. Production process includes

milk, breeding of high yielding cattle and taking care of the animals. Dairy Scientists are employed to cover the production aspect of the industry. They conduct experiments to determine the effects of different kinds of feeds and environmental conditions on the quantity, quality and nutritive value of milk produced. They also research breeding to improve dairy breeds, feeding and management of dairy cattle. In India, dairying has been practised as a rural cottage industry since the remote past. Semi-commercial dairying started with the establishment of military dairy farms and co-operative milk unions throughout the country towards the end of the nineteenth century.

The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organized dairies 4

SUMUL DAIRY have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. In the year 1939 Sardar Vallabhbhai Patel went and meet the farmers of Anand and told them that for the trade of milk the dairy was necessary. At that time a person named Tribhuvandas Patel came forward to take the leadership. During that time there was only one dairy “POLSUN DAIRY” which belongs to British’s and they use to give very less price for milk to the India Milkmen. In order to support the Indian farmers “AMUL DAIRY” was established in the year 1946 DDR. Kurien was appointed at this dairy. Dr. Kurien along with Tribhuvandas Patel took the leadership. Indian becomes independent in the year 1947. in the meantime AMUL Dairy got order from the WHO to produce milk Powder from buffalo milk. Dr. Kurien & Mr. Dalaya found the technique of producing milk from buffalo milk. After booking at this Lal Bahadur Shatri took the visit of Ajampur village and promised them to provide with more money fro the systematic development of the dairy industry. For the proper development of the dairy industry NDDB was established at Anand. NDDB started operation – 1 programmer for all dairies in 1971-72 in the year 1977 operation Flood-2 started. Transportation machinery & pressmen of milk at low cost and give importance. In the year 1990-operation flood-3 started. Here the farmers were, made aware about their right & responsibilities high productivity of milk at low cost & so the co-operatic of development programs started.

1.3

MARKET SHARE, LEADER AND PLAYERS:

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SUMUL DAIRY There has one dairy co-operative society exist in every district of India and it may not be more than one in one district as per government regulations. But in Surat district there are two dairy cooperative societies 1) Sumul & 2) Chauryasi. In Surat district Sumul dairy is market leader in sells of milk. It offers many types of milk. It sells milks in the brand name of AMUL. And Amul dairy is India’s largest dairy industry and market leader of milk and milk products. Amul dairy also exports many products to abroad. In Surat district more than 35% of total populations use sumul

brand milk.

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SUMUL DAIRY

INTRODUCTION OF THE COMPANY
CHAPTER CONTENT:
2.1 COMPANY DETAILS 2.2 MISSION AND VISION STATEMENT OF SUMUL 2.3 ACHIEVEMENT OF SUMUL 2.4 LICENSES FOLLOWED BY SUMUL 2.5 OBJECTIVES OF SUMUL 2.6 SUMUL AT A GALANCE 2.7 MILESTORE OF SUMUL 2.8 GROWTH PLAN OF SUMUL 2.9 DETAILS OF PROMOTERS AND OWNERS 2.10 ORGANISATION STRUCTURE 2.11 DETAIL OF COMPETITORS IN MILK PRODUCTS

2.1 Company Details:In the initial stage of 20th Century, Private Milk Traders were monopolizing the Milk market and use both the Milk Producers and 7

SUMUL DAIRY Consumers alike for their own profit. Procurement price of milk was very low and used to be fixed by such traders called “Traditional Bhatia’s”. In addition to this, the price was fluctuating from time to time at their sole discretion. The income of the producers from milk was very low and they had no incentive for modern dairy farming. The farmers felt indignant (resented) the system, but they were helpless in the face of this traditional constraint and their own lack of resource less ness. Hygiene and pure milk was almost unknown in the market. As a result, better quality of milk was practiced by the traders to meet the growing demand of milk in the city. During the year 1948, Late Shri Jagjivande R. Patel, popularly known as “DASKAKA”, brought framers of Olpad Taluka under the ambit of a Co-operative Society, which was registered on 01-041949 as Takarma Group Co-operative Milk & Vegetable Marketing Society Ltd. This was established in order to face challenge of fanne, which was the base of the solid foundation of Surat District Co-operative Milk Producers’ Union Ltd., popularly known as “SUMUL”. Surat District has been a Pioneer in India in challenging trade in Cotton and Milk, through co-operatives. The Surat District Cooperative Milk Producers’ Union Limited, popularly known as “SUMUL” came into existence on 22nd August, 1951. SUMUL is trade name literally meaning ‘Sound Price’. Sumul was established in order to salvage the poor producers from the clutches of private traders. Organisation and integration of procurement, processing and marketing of milk and milk products by the producers themselves on a sound co-operative line. This also ensured elimination of middleman equitable distribution of benefits to Rural Milk Producers and indirectly to urban milk consumers as well. It also discharged its most important obligation to help the producers, increase milk production by providing them all essential inputs and extension services at their door-step at most economic rates. 8

SUMUL DAIRY

A real break – through for synthesis and crystallization of SUMUL came in 1966, with the approval of its Dairy Project at cost of Rs. 77.47 lacs under the Swedish Aid Programme. The State Government also generously provided Rs. 74.28 lacs in the form of subsidy, loan and share capital. The National Dairy Development Board, under the stewardship of Dr. V. Kurien, designed and erected the new Dairy Plant to cope – up with the targeted increases in milk procurement in the succeeding years. The keen interest and sold support of Dr. V. Kurien, right from 1951 till date played an important role in bringing SUMUL to its current status. The formal commissioning of the Pasteurization Plant on March 17,1968 was a turning point for SUMUL. The BOARD OF DIRECTORS is 13 elected members from the 13 talukas of SURAT district and they from among themselves elect the CHAIRMAN. Presently Shri MANUBHAI A. PATEL, the CHAIRMAN and Shri P.R. PATEL are the MANAGING DIRECTOR of SUMUL DAIRY. The total numbers of SUMUL employees are 1117 besides the contract workers. Currently the co-operative is on to TOTAL QUALITY MANAGEMENT drives to improve the overall productivity of the co-operative. SUMUL has three chilling centers at BAJIPURA, NAVIPARDI and UCHHAL for ensuring safe delivery of raw milk to SUMUL where the milk is processed and packed in to various types liquid and by products. To improve the nutritional feed given to the cattle at the village level, the co-operative has established a cattle-feed factory at CHALTHAN. SUMUL has also an oil packing station at CHALTHAN (job work for GCMMF) where it packs double refined filtered oil (repressed and mustard oil) in semi-packs to be sold in various parts of the nation. The dairy also has CO-OPERATIVE 9

SUMUL DAIRY DEVELOPMENT CELL as VERTINARY CELL to provide

educational and technical medical support for better animal productivity at the village or DCS level. The area of operation of SUMUL is the entire district of SURAT. The present milk procurement of 160,929,736 liters of milk annually makes it the third largest UNION in the STATE after the KAIRA DAIRY (AMUL DAIRY) and MEHSANA DAIRY. It has the record of paying the highest milk procurement price in INDIA to its producers. SUMUL is the UNION and its surplus milk marketing in the state and outside is handeled by the GCMMF (GUJARAT MILK MARKETING FEDRATION ANAND) under the ANAND PATTERN, as envisioned by the illustrious Dr. KURIEN. THE NATIONAL DAIRY DEVELOPMENT BOARD (NDDB) is a NATIONAL LEVEL ORGANIZATION helping the co-operatives movement development in terms of resources (financial, technical and otherwise). SUMUL is holding a strong BRAND EQUITY in SURAT DISTRICT and commands more than 70 percent of the liquid milk in SURAT CITY. To make the distribution system fast and to deliver milk in time, they have as many as 61 milk transportation routes and 1531 agents (1386 regular and 145 full time). The present market of SURAT for liquid milk is saturated to around 3.8 lacks litters per day. On the other hand milk procurement is presently around 4.5 lacks litters. The supply-demand gape between raw milk and liquid milk sales has increased to a level where the daily milk surplus exceeds 1 lack litters. This has necessitated the active development of the “BY-PRODUCT” market. Products thereby introduced namely “PANEER”, “GHEE”, “FLAVOURED MILK (JOME)”, “SWEETS”, “SHRIKHAND”, “LASSI”, “BUTTER”, etc.

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SUMUL DAIRY SWEETS are profitable by-product the market scope of which is reasonably good. The present sales volumes of sweets are because of its taste, quality and freshness. Surat Milk Union Limited or SUMUL, which is now renamed as The Surat District Co-operative Milk Union Ltd, is one among the 12 district unions which acts as manufacturing units of dairy products for Gujarat Co-operative Milk Marketing Federation Limited, the marketers of AMUL and DHARA brand of products. Surat District has been a Pioneer in India in channeling trade in Cotton and Milk through co-operatives. Before SUMUL stepped in, traditional Private Milk Traders were having complete control and authority (dominant) over the area. On the other hand, Dairying was not very much popular with tribals (a major rural population in the District). There was no infrastructure existed for milk marketing in their talukas, inaccessibility to their villages as well as taboos regarding keeping of buffaloes prevented the entire population of tribals from considering dairying as a source of income. The tribals kept their cows to produce bullocks rather than milk, which was insufficient even to nurse the calves. Most of the tribals were unaware of the usual milch breeds. Hygienic and pure milk was almost unknown in the market. To meet the growing demand of milk in the city, these traders were adding some other things to make inferior or lesser quality of milk. To salvage the poor producers from the clutches of these Private Traders, Organisation and integration of procurement, processing and marketing of milk and milk products by the producers themselves on a sound co-operative line was essential; this would also ensure elimination of middlemen, equitable distribution of benefits to Rural Milk Producers and indirectly to urban milk consumers as well. 11

SUMUL DAIRY

2.2 Sumul’s Mission & Vision Statement:“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT TO CONSUMER DELIGHT AND RESPECT FRO ALL. WE BELIEVE IN GROWTH AND CONTINUOUS TRUST & IMPROVEMENT INTEGRITY” It is quite obvious from the mission statement of the Sumul; the organization is committed to customer satisfaction and believes in providing the highest quality of product to them. Infect, for ensuring highest quality product, it has already put into practice TPM and TQM tools in the organization besides many Quality Circle (QC) and Small Group Activity (SGA) operating in the organization to achieve the vision and mission. THROUGH TEAMWORK,

EXCELLENCE WITHOUT COMPROMISING OUR HONESTY AND

2.3 ACHIVEMENTS OF SUMUL:SUMUL is working for 54 years in Surat city. SUMUL sells milk and milk products. In this 54 years time organisation has won many awards and prizes which are mentioned in the following table yearwise:

 AWARDS RECEIVED BY SUMUL:
Year 1988-89 Award Title National Productivity Award Awarded by National Productivity

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SUMUL DAIRY Council, New Delhi South Gujarat University, Surat National Productivity Council, New Delhi Council for Fair Business Practice, Productivity

1989-90 1990-91

Sardar Patel Saksharta Award National Productivity Award

1992-93

Jamnalal Bajaj fair Practice Award

1998-99.

Mumbai Certificate of merit from National National Productivity Council Appreciation Award for Total

Council, New Delhi Quality Circle Forum of India, Vadodara Ahmedabad Management Association, Ahmedabad Surat Management Association, Surat

1999-00.

Productivity maintenance

Total 1999-00. Award

Productivity

maintenance

2000-01

Quality Excellence Award National Productivity Award (Dairy

2000-01

Development Sector) - 2nd

&

Production

National

Productivity

Council, New Delhi Council Business for Fair

2000-01

Jamnalal

Bajaj

Fair

Business

Practice Merit certificate Manager of the year 2001

Practice,

2001-02 2001-02

Mumbai Surat Management

Association, Surat Birla Cellulosic Award for Small Birla Cellulose, Group Activity Kharach National Productivity Award (Dairy National Productivity Development & Production Council, New Delhi Management Sector) - 2nd Management Excellence Award - Surat 2002 IMC Ramkrishna Bajaj

2001-02

2002-03 2002-03

Association, Surat Award Indian Merchant Chamber, Mumbai

Merit Certificate 2002

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SUMUL DAIRY Energy & Fuel Users Association of India, Chennai Surat Jilla Sahakari

2003-04.

Enfuse

National

Award

For

Energy Efficiency Excellence Best Organisation of the District

2003-04 2003-04 2004-05

Sangh, Surat Best Garden of the Company of Surat Municipal Surat City Award of Excellence Corporation, Surat Federation of Gujarat Industires Scholar, President of Science Technology

2004-05

Information Technology Award

and Member of State Govt. Pro. Dr. M. G. K. Menon, at Delhi Infra Structure – and

2004-05

Intelligent 2004

Enterprise

Award

– Retail at Sri Lanka

Consumers Products,

2004-05

C

Subramaniyam

International United

Nations

of

Award Best of Best Winner Team Award

Organisation (UNO)

2004-05

For ETP

Less Load on Intel Sadar Presetation

Presentation Shield For The Presentation of 2004-05 Use Max. Space in Main Stores By Reducing Storage Space (won at 2nd rank) -----

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SUMUL DAIRY

(Awardes taken from President and Prime minister of India at Delhi.)

2.4 LICENSES FOLLOWED BY SUMUL:-

The organisation follows different licenses which are as follows:  ISO 9K2K  HACCP  MMPO  ISI  AGMARK  PFA (Prevention of Food regulation Act)  ISO14000  ISO 4000

2.5 OBJECTIVES OF SUMUL:The SUMUL Dairy was established with the following objectives:  To provide guaranteed remunerative milk market round the year for surplus milk.  To provide maximum return to producers.  To provide good quality Milk and Milk Product to consumers.  To increase milk productivity at most economic rate by providing technical input services to the producers.

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SUMUL DAIRY

2.6 SUMUL DAIRY AT A GLANCE:1 2 3 4 5 6 7 REGISTRATION NO. DATE OF REGISTERATION Date of commissioning P.D:688 22nd August, 1951 of

March, 1968 Pasteurization Dairy Plant Dairy Plant capacity at the time of 50,000 liters. commissioning Present capacity of Dairy Plant Milk Powder Drying capacity Milk Chilling Plants along with capacity of Milk Chilling

per

day 6,00,000 liters. per day 12.5 MTs. per day Bajipura Uchchhal Navi Pardi Chasvad Dediapada 3,00,000 liters. per day 1,00,000 liters. per day 2,00,000 liters. per day 30,000 liters. per day 30,000 liters. per day

8 9

No. of Milk Producers Co-op. 956 Total membership and Nos. of Primary Milk Producers' Co - operatives: Society Membership Tribals & Non-Tribals 1,041 2,18,975 Milk Co – operatives Managed by 81 women No. of Mobile Veterinary Clinics 22 No. of Veterinarians 40 No. of A.I. (Artificial Insemination) 140 Centres Cattle feed Mixing Plant capacity 300 Mts. per day Mineral Mixture Plant: Production 45000 packets for and sale: Milk Producers

10 11 12 13 14 15

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SUMUL DAIRY

2.7 Milestone of Sumul Dairy:

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SUMUL DAIRY

2.8 Growth Path of Sumul Products:

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SUMUL DAIRY Products Milk distribution in bottle Establishing member of GCMMF Milk distribution in polybag Butter milk distribution in polybag Whole milk (SUMUL YA) in bulk Whole milk (SUMUL YA) in 500 ml Homogenized toned milk in 500 ml Homogenized toned milk in 200 ml Flavor milk Paneer Sweets Shrikhand Masala Chaas Flavored milk in 200 ml pouch Pasteurized milk in 5 liter pack Masala chass, methi chass Pizza & Ice-cream Rasgulla, Gulab Jamun,Sugar & Cow milk Tea Glabletop Packing for Milk (Plane & Flavoured) Buttermilk in ESL Packing Cold Coco Year 3-5-1968 9-7-1973 7-12-1978 1-6-1987 1987-88 1991 1994 1995 1993 1994 1994 1995
15-8-99 15-8-99

1998 2000 2001 2002 2003 2004 2005 2005

2.9 DETAILS OF PROMOTERS AND OWNERS:-

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SUMUL DAIRY NO. 1 NAME Shri Manubhai (Chairman) ADDRESS AND PHONE NO. Representative, Nihali Dudh Utpadak S.M. Ltd, At: Nihali, Po:Dholikui, Tal: Mahuva - 394250. Res: 2 Shri Sudambhai Raghunathbhai Patel (Vice Chairman) (02625-258158) MO.98241-10316 Representative, Velda Vibhag Dudh Utpadak S.M. Ltd., At: Velda, Tal: Nizar 394370. 3 Shri Chunilal Durlabhbhai Patel Res: ( 02628 ) - 244238 / 244228 Representative, Lotarwa DudhUtpadak S. M. JIN Ltd, At & Po.: Lotarwa, Tal: Vyara - 394 650. 4 Shri Arvindbhai Singabhai Gamit Res: (02626) - 222446 / 220017 Representative, Pipalkuwa Dudh Utpadak Pipalkuwa, Tal: Songadh – 394660. 5 Shri Jayeshbhai Natvarbhai Patel Res: 02624 – 251088 Representative, Delad Dudh Utpadak S.M. Ltd, At: Delad Po.: Sayan, Tal: Olpad – 394540. 6 Shri Jitendra Dhirajlal Desai Res: 02621 – 242362 Representative, Uchchal Tal: Uchchhal – 394375. 7 Shri Ratilal Somabhai Master Res: 02628 - 231106/231123 Representative, Surat Dudh Utpadak M. Ltd, 40-A, Patelnagar, A.K. Rd, Surat, Tal: Choryasi - 395008. 8 Shri Manojbhai Naranbhai Patel Res: 0261 – 2543404 Representative, Shekhpur Utpadak S.M. Ltd, At: Shekhpur Dudh Dudh S.M.Ltd, Pipalkuwa,Po:

Amthabhai

Patel

Utpadak S.M. Ltd, At & Po.: Uchchal,

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SUMUL DAIRY Po.: Sayan, Tal: Kamrej – 394180. 9 Shri Shivabhai Babubhai Patel Res: 02621 – 242526 Representative, Naugama Utpadak S.M. Ltd, At: Naugama (Nani), Po.: Simodra, Tal: Mangrol – 394410. 10 Shri Ramanbhai Ukadiyabhai Gamit Res: 02623 – 233288 Representative, Zankhala Utpadak S.M. Ltd, At & Po.: Zankhala, Tal: Mandvi – 394160. 11 Shri Bhupendrabhai Ratilal Desai Res: 02623 – 221396 Representative, Valod Dudh Utpadak S.M. Ltd, At & Po. Tal: Valod – 394640. 12 Shri Shantilal Kalyanjibhai Patel Res: 02625 – 220151 Representative, Bagumra Utpadak S.M. Ltd, At & Po.: Bagumra, Tal: Palsana – 394315. 13 Shri Arvindbhai Bhagvanjibhai Patel Res: 02622 - 263308/263309 Representative, Rampura Dudh Po.: Varad, Tal: Bardoli – 394602. 14 Shri Parsottambhai Mundiyabhai Padvi Res: 02622 – 220431 Representative, Umarda Umarda, Tal: Umarpada. 15 The District Registrar C/o.: 02629 – 253474 Representative, The Registrar, Co-op. Societies, Gujarat State, Gandhinagar. Off: 0261 – 2472051 Dudh & Dudh Dudh Dudh

Shakbhaji U.S.M. Ltd. At.Rampura,

Utpadak S.M.Ltd. C/o., At & Po.:

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SUMUL DAIRY 16 17 18 Shri P. Chellapa Shri K. M. Zala / S. T. Desai Shri Pramthesh Rameshbhai Patel Representative, N.D.D.B., Anand. Representative, GCMMF Ltd, Anand. Dr. Managing Director, Ex. Officio Member Secretary, SUMUL DAIRY, Surat. Res: 0261 - 2422180/2422137

2.10 ORGANISATION STRUCTURE OF SUMUL:BOARD OF DIRECTORS


CHAIR PERSON


MANAGING DIRECTOR


GENERAL MANAGER


ASSISTANT GENERAL MANAGER


MANAGERS


DEPUTY MANAGER 22

SUMUL DAIRY


ASSISTANT MANAGER


SENIOR EXECUTIVE OFFICER


EXECUTIVE OFFICER


SENIOR EXECUTIVE


JUNIOR EXECUTIVE


SENIOR ASSISTANT


JUNIOR ASSISTANT


TECHNICIAN – 1 & 2


WORKMAN – 1, 2, & 3

2.11

DETAILS

OF

COMPETITORS

IN

MILK

PRODUCTS: SUMUL is producing many milk products like ghee, milk powder, panner, butter, dahi etc. So, there are several competitors in milk products against SUMUL.

COMPETITORS NESTLE BRITANIA AMUL SHUFFLE

COMPETITION IN MILK PRODUCT GHEE AND MILK POWDER DYNAMIX GHEE SHREE KHAND, FLAVORED MILK, GHEE PANNER

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SUMUL DAIRY SAGAR INDIANA VARDHAMAN GOKUL GHEE, PANEER, MILK GHEE GHEE GHEE

OBJECTIVES OF THE PROJECT

24

SUMUL DAIRY

OBJECTIVES:
We have chosen this topic in order,  To study functional areas of sumul dairy like Production department, Human resource department, Marketing department, Finance department, etc.  To know about dairy industry as a whole and in particularly in Surat district.  In partial fulfillment of the requirement of the degree of bachelor of business administration.

25

SUMUL DAIRY

METHODOLOGY OF THE PROJECT

26

SUMUL DAIRY

METHODOLOGY :
The methodology, which is also known as the systematic procedure, which is followed for this marketing research project includes steps which are as follows: Problem definition  Development of an approach to the problem  Research Design  Determining the sources of data  Determining the sample design and sample size  Data collection method  Analysis and presentation of collected data

27

SUMUL DAIRY

Problem Definition:-

To knowledge and study different functional areas of Sumul Dairy. Basically there are two types of data i.e. primary and secondary: -

 Primary Data Collection  Secondary Data Collection

Primary Data: Primary data are those data which are collected for the first time for the use of project on hand. There are two methods for collecting primary data are observation & survey. Primary data collection contains the following two types of methods: 1.

Observation

Method:-

It

contains

Casual

observation, Systematic observation, direct observation and contrived observation. 2.

Survey Method:- It contains Personal Interview,

Telephone Interview and Mail Interview.

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SUMUL DAIRY Secondary Data: It can be collected from internal as well as external sources 1. Internal Source Various internal sources like employee, books, sales activity, stock availability, product cost, etc. 2. External Sources Libraries, trade publications, literatures, etc are some important sources of external data.  Primary data are used for the core purpose of the project. And this Primary data has been gathered by survey method.

LIMITATION OF THE PROJECT

29

SUMUL DAIRY

LIMITATIONS:

 As a lack of knowledge and experience we couldn’t find proper methodology of project.  We have not enough knowledge to conduct research and survey that’s why we couldn’t conduct survey for Sumul products in Surat district.  As Sumul is co-operative organization we got proper support of staff and we gathered lot of details and information but because of plenty of data we got confused what to put and what not to.  We have put only important information of the project. 30

SUMUL DAIRY  As organization is vast spread and have many units and plants we couldn’t manage to visit and study all of them.

FINDING AND ANALYSIS OF RESEARCH

CHAPTER CONTENTS:31

SUMUL DAIRY

A) PRODUCTION DEPARTMENT B) HUMAN RESOURCE DEPARTMENT C) MARKETING DEPARTMENT D) FINANCE DEPARTMENT

CHAPTER CONTENT: 6.1 ACTIVITIES OF PRODUCTION DEPARTMENT 6.2 PRODUCTION PLANNING

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SUMUL DAIRY 6.3 HOW PRODUCTION PLAN IS CONVERTED IN MATERIAL REQUIREMENT PLAN AND ULTIMATLY IN PURCHASE PLAN? 6.4 PLANT LOCATION 6.5 MATERIAL HANDELING EQUIPMENTS 6.6 CLASSIFICATION OF THE INVENTORIES 6.7 PURCHASE 6.8 MICRO MOTION STUDY

6.1 ACTIVITIES OF PRODUCTION DEPARTMENT:Along with the Production various other activities are perform by the Production Department. All these activities are the part of Production department. These activities are as follow: 1. Stores Management. 2. Quality Checking. 3. Packing of Finished Goods. 4. Printing on Packed Product. 5. Dispatching of Goods. 6. Washing and Cleaning of Machine & Equipments Regularly.

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SUMUL DAIRY 7. Maintain the Machine and other equipments.

6.2 PRODUCTION PLANNING:The Production Manager as per the daily demand of the Sales Manager and Marketing Manager does production Planning. After this planning is done the order is given to the Senior Executive Officer of the Production Department and Senior Executive Officer organise planning process. Production planning is based on the daily requirement of the product in the current market. If the requirement of the product is high then Production planning is done daily and very carefully. Everyday the Parlor Manager gives their daily demand to Sale and Marketing Manager then Sales and Marketing Manager give that demand to the Production Manager and after getting that demand production manager done planning for producing demanded product. As per the demand of the product production manager also plan for the raw material, packing material, dispatching material, etc. and send that demand to the Store Department. Production Planning is basically done for daily requirement of the product. But sometime the demand of the product is weekly or monthly so production plan is done weekly or monthly. For Example: THE GUJARAT MILK MARKETING FEDERATION (GMMF) gives their demand every week so the production planning for the demand of GMMF is done on the weekly bases.

6.3

HOW PRODUCTION PLAN IS CONVERTED IN MATERIAL REQUIIREMENT PLAN & ULTIMATELY IN PURCHASE PLAN?

In production area the strong system procedure is followed. Every process has their own Control charts, Variance analysis, yield analysis, Cost analysis, Quality analysis, and Performance analysis. All packing material purchase plan is develop by concern process in charge and send their demand to store department. Store department is verifying it with

34

SUMUL DAIRY specifications. They also verified stocks and if any of the stock is in scarce then Store manager send the order of the scarce material to the Purchase Department. In Purchase Department Purchase Manager cross-examine the order send by the Store Manager. Then Purchase Department generated inquiries for particular demanded material and invites the sample of the material. Then Purchase Manager places the order to concern Quality and performance of the particular supplier. Thus, the production plan is converted into material requirement plan and after that in purchase plan.

6.4 PLANT LOCATION:Surat city is located in South Side of Gujarat. It covers total area of Surat is 111.16 sq.km. Most of Diamond, Textile, etc. Business are well establish in SURAT city. SUART district covers the areas like OLPAD, NAVI PARDI, MANGROL, CHASVAD, NIZAR, UCHCHAL, VYARA, VALOD, MAHUVA, PALSANA, CHORYASI, CHALTHAN, BARDOLI, BAJIPURA, MANDAVI, KAMREJ and all near by villages. SUMUL DAIRY is located near the Railway Station Road in Surat. It covers 15,000 acre land. SUMUL provides milk collection facilities at the producer’s door in each village cooperative, wherefrom milk is speedly, efficiently and economically transported twice daily to its dairy plant, chilling centers for processing and marketing. Currently 97 milk routes are playing, keeping the criteria of optimum coverage of marketable surplus required distance safe time limit and minimum overlapping between the routes on economical grounds. Since the milk procurement system has been extended far and wide in the entire district, SUMUL have five chilling centers at BAJIPURA, UCHCHAL, NAVI PARADI, CHASVAD and DEDIAPADA at a distance of 50, 105, 25, 110, 140 km. Respectively from Surat city which are operated with their full capacities. And the chilled milk from there is transported to the Dairy Plant by SUMUL’S insulated Milk Tankers as frequently as wanted. Keeping the overall annual milk source to a bare minimum of 0.75% of the total milk procured. These 5 chilling centers have provided equal opportunities of milk

35

SUMUL DAIRY marketing to the distantly inhabited tribal milk producers of else they would have been obliged to dispose of their milk to the middlemen at very low prices. They sell privileged milk uniformly as the other additional cost of chilling is being borne by SUMUL. SUMUL has procured 15,04,61,760 kg milk during the year out of which 10,09,44,886 kg i.e. 62.52% constituted buffalo milk and 6,65,91,094 kg i.e. 37.50% constituted cow milk. Achievement in milk procurement is due to adoption of Animal Husbandry as an effective tool for economic growth by milk producer members and their selfless devotion towards milk cooperative movement and also adoption of business approach by SUMUL. SUMUL has paid on an average Rs. 215/- per Kg fat to its milk producers/farmers. It has attained self- sufficiency in its milk requirement. Now SUMUL is in a position to surplus milk to mother dairy of Gujarat Cooperative Milk Marketing Federation Limited, Gandhinagar and other District Cooperative Milk Unions in Gujarat.

6.5 MATERIAL HANDELING EQUIPMENTS:Material Handling is defined as Controlled movement of material, from receipt, through storage and production and up to the shipment f finished product. SUMUL use following classes of equipments for material handling: 1. On the basis of the form and nature of the product. 2. On the basis of the path of the movement. 3. On the basis of the degree of automation. 4. On the basis of basic mechanism of equipments. 5. On the basis of source of power. 6. On the basis of starting point & destination of transportation. SUMUL use the following types of equipments for material handling: 1. Pipelines

36

SUMUL DAIRY 2. Tanks 3. Crates 4. Cranes 5. Cans 6. Trucks 7. Tempos 8. Conveyor Belts 9. Bucket Conveyor 10. Trolley for Crates 11. Trolley for Cans 12. By Manually 13. Plastic Tubes 14. Glass Bottles

6.6 CLASSIFICATION OF THE INVENTORIES:-

SUMUL is classified the Inventory on the bases of two types which are as follows: 1. Raw Material 2. Finished Goods The Inventory in Raw Material includes followings: a) Material use in Packing b) Spare parts of Machinery c) Computer Hardware d) Special Chemical use in quality checking laboratory e) Special Chemical use in packing finished goods f) Stationary product g) Electrical equipments h) Edible essence and colors The Inventory in Finished Goods includes followings:

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SUMUL DAIRY a) b) c) d) e) f) Milk Paneer Ghee Flavored Milk Sweets Shrikhand

6.7 PURCHASE PROCEDURE:Store Department is checking quantity of all material and there is a unique recording system, which is called COMPUTER ORACLE SYSTEM. This Computer Oracle System is use for generating Indents for required products. Indents is analysed by Material Manager (MM) and discussed with concern department and Finally Indents is forwarded to Purchase department. Concern Department has to receive the samples of required material by filling of Material Issue Docate (MID) form to Store Department. Concern Department is approved purchase material as per the Sample of their own material. Store Department is coordinating between Concern Department and Quality Checking Department for final approval of purchase material. There is one report generated which is called Material Approval Report (MAR). After making of MAR, Concern Authority signs it and sends it with bills and challans to purchase Department. Purchase Department is verified all documents and send it to Account Department. After observing all documents Account Department is making final payment to the party.

DOCUMENTS RELATED PURCHASING:The Documents related Purchasing are as follows: 1. Indents 2. Material Issue Docates (MID) 3. Purchase Inquiry

38

SUMUL DAIRY 4. Quality Checking Report 5. Material Approval Report (MAR) 6. Order Report

MILK PROCUREMENT SYSTEM:SUMUL provides milk collection facilities at the producer's door in each village cooperative wherefrom milk is speedily, efficiently and economically transported twice daily (both in the morning and evening) to its Dairy Plant, Chilling Centers (whichever is nearer) for processing and marketing currently 81 Milk Routes are playing, keeping the criteria of optimum coverage of marketable surplus, required distance, safe time limit and minimum overlapping between the routes on economical grounds As the group societies have generally adopted small and non-viable villages for their upbringing and faster development, they manage to procure milk economically by transporting other commodities too, side by side with which they also deal by adjusting the type of vehicle to the actual need. Since the milk procurement system has been extended far and wide in the entire district, Sumul's five Chilling Centers at Bajipura, Uchchal, Navi Pardi, Chasvad & Dediapada site, at a distance of 50, 105, 25, 110 and 146 kilometers respectively from Surat city and are operated in the manner that their full capacities (currently 3,00,000; 1,00,000; 2,00,000; 30,000 and 30,000 litres respectively) are fully utilized and the chilled milk there from is transported to the Dairy Plant by SUMUL’S insulated Road Milk Tankers as frequently as warranted, keeping the overall annual milk sourage to a bare minimum of 0.75% of the total milk procured. These 5 Chilling Centers have provided equal opportunities of milk marketing to the distantly inhabited tribal milk producers, which aids the economy of their milk production enterprise or else they would have been obliged to dispose of their milk to the middlemen at very low prices. These under-privileged milk producers in the distant remote areas also get the

39

SUMUL DAIRY same price of milk uniformly as the others in the rest of the areas in the district despite the higher cost of milk transport as the additional cost of chilling is being borne by Sumul. By procuring milk from these villages of the District, SUMUL reversed the trend of negative economy of these milk producers from a milk production enterprise and implanted the firm roots of a flourishing milk production economy in these up-coming areas in a uniform manner to bring these people into the socio-economic main stream of the Country. Under the agreed terms and conditions of milk transport, various risk such as spilling or spoilage of milk or damage to milk cans in accident or sourage of milk due to contractor's delay in the transport or pilferage or adulteration of milk in transport etc. is borne by the contractors. In nonapproachable villages by road, head-load cost of milk transport is also borne by the Union. Since the contractors have their regular, assured and remunerative business in transport of milk, they conscientiously perform the above task giving rise to least problems of the above nature consequently, the figures of overall Fat% and SNF% in both buffalo and cow milk procured by SUMUL during the year, match with normal milk standards (i.e. buffalo milk 6.8% Fat, 9.0% SNF, cow milk 4.3% Fat, 8.5% SNF) which aids the Union in marketing good quality milk and milk products.

40

SUMUL DAIRY

MILK CYCLE:-

⇒ STEP 1
A Machine milking the Cow at Village level.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 2
Milk Producers' Cooperative Ltd. collects the milk from all the villages.

(source: photo has taken from CD provided by Sumul Dairy)

41

SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 3
The collected milk is tested against the set standards. That insures quality of milk being received from the root level.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 4

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SUMUL DAIRY The received milk is sold locally as well as transported to the dairy for the further processing.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 5
The milk is tested in dairy lab. No compromises with the quality of milk being received.

43

SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 6
The qualified milk is received at Raw Milk Receiving Dock at Dairy.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 7
Cleaning Process at dairy.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 8
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SUMUL DAIRY Milk is pasteurized, clarified, and standardized using latest technological machines & equipments.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 9
Milk again tested before being packed in the SUMUL’S Laboratory.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 10

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SUMUL DAIRY Pouch filling for the last users at the Packing Department at SUMUL.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 11
Packed milk stored in well-maintained cold storage of SUMUL.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 12
Milk dispatched for the sales in the market of Surat from the Dispatch Department in the SUMUL’S trucks.

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SUMUL DAIRY (source: photo has taken from CD provided by Sumul Dairy)

6.8 MICRO MOTION STUDY :
During the visit to the production plant we have done micro motion study of a worker whose work was to take the milk pouched from the machine and the keep them on crate, which uses to come serially on the belt conveyors. The position of the person was such that it to very less time.

The pouches of 500 ml were filled in Polly bags, sealed and ready pouches were thrown though the pouch-filling machine.

1. First of all we caught the two pouches in one hand and again two pouches with other hand (5 sec)

2. Then he kept all the four pouches together in the crate coming over the Belt conveyor. (4 sec)

3. He again tuned and caught all the four pouches with two hands. (5 sec)

47

SUMUL DAIRY

4. And again kept all the four pouches together in the crate coming over the Belt conveyor. (4 sec)

The entire process was completed in 18 sec.

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SUMUL DAIRY

TOTAL QUALITY MANAGEMENT:SUMUL’S Union has adopted International Standards for Quality Management. QAS Australia has certified SUMUL’S quality management systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. By adopting quality management system, SUMUL’S Union has standardized all process and procedure system for production of milk and milk products. As usual, it is easy to design system but difficult to implement it. But with active Participation and dedication of SUMUL’S workers and staff & with better leadership & guidance of Board of Directors, Officers, Continuous training programs under TPM and GMP, SUMUL has successfully Implemented ISO Standards. At every six months interval, Total Quality Management System has to be audited and if found proper as per standard Quality Management norms then certification are renewed. We have received continuous renewals. INTERNATIONAL I.S.O – 14001 CERTIFICATION FOR

ENVIRONMENT CONTROL. Accreditation of ISO 14001 certificate is a testimony of commitment towards the customers of SUMUL for 100% quality safe milk and milk products. By complying with Terms and Conditions of ISO 9002, ISO 14001, HACCP, Quality Management and Environment Control, Union has undertaken various measures for fully automation in their various production line, installation of Automatic Machinery in various production line is in progress.

49

SUMUL DAIRY

QUALITY POLICY:SUMUL DAIRY developed, Devoted, Dedicated and Motivated Workforce trained to ensure consistent supply of safe and good quality milk and milk products to achieve highest level of customer satisfaction. SUMUL will achieve this by continuous monitoring and upgradation of producers and processes applying scientific innovations and state of the art technology, and remain esuriently.

OBJECTIVES OF QUALITY DEPARTMENT:The main Objective of SUMUL’S Quality Department is as follow: a) To Understand and Meet Customer Needs. b) To Develop Competency of employees for continual improvement of their Performance and Effectiveness. c) To Demonstrate continual Improvement of process based on Objectives. d) To Review food safety and Quality Management System for Improvement. e) To apply scientific Innovations and State of Art Technology.

QUALITY ASSURANCE:SUMUL believes in Total Quality Management (TQM). it takes almost care to provide best quality milk and milk products to the customers.

 ACTIVITIES OF QUALITY ASSURANCE:-

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SUMUL DAIRY Quality Assurance Manager performs following activities: 1. To test the specifications of raw material. 2. To suggest the production department for producing products as per the parameters tested. 3. To test the parameters of finished products before packing.  WHICH PARAMETERS ARE TESTED IN Q.A. LAB.:1. Proteins 2. SNF 3. Fats 4. Acidity 5. Neutralisation 6. Colour 7. Smell 8. Additives 9. Bacterial Percentage 10. Moisture Percentage 11. Flavor 12. Yeast 13. Mold

VALUE ADDITION OF MILK AT DIFFERENT STAGE:-

⇒ CLARIFICATION: ~
Milk is clarified to remove unseen dirt and dust or foreign material, which may be harmful to our body.

⇒ PASTEURISATION: ~

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SUMUL DAIRY Milk is pasteurized to kill all pathogens (Harmful bacteria) for our body and this process is ensured through automatic Controller (Flow Diversion valve) which allow only pasteurized to tank for packing.

⇒ CONSISTENCY: ~
SUMUL have certified ISO-9002 Quality System and HAACP (Food safety) and SUMUL have undergone through Inspection audit, Surveillance audit. SUMUL have also internal quality audit system for Continuous Improvement and effectiveness of Corrective action.

⇒ STANDARDISATION: ~
Milk is being standardized according to type of milk and set standard as per ISO and PFA. Standardized Milk is checked through MILKO SCAN (like Body Scan), which ensure standardization of each constituent of milk. This type of Machine is available to us only in this region. Small Organisation cannot have this type of machines because its cost is RS. 30,00,000.

⇒ BACTERIOLOGICAL LABORATORY: ~
SUMUL have well established bacteriological Laboratory to ensure safe milk supply to its valued customer.

⇒ STAFF: ~
SUMUL have highly qualified staff that ensures each test and process in compliance with set standard. Each employee has undergone for TQM (Total Quality Management), Training and work for Kaizen (continuous improvement) For Value or Money for Customer. The whole Process in the dairy is done through SS Pipe only and nowhere it is touched by hand. The equipment Cleaning is done through Centralized automatic CIP unit.

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SUMUL DAIRY The packaging is done through automatic volume control machine with high accuracy. House keeping and Good Manufacturing Practices (GMP) have become Part and parcel of Routine work. Each employee working in plant is examined for his health condition by a group of doctors at regular interval.

PLANT LAYOUT:-

DAIRY PLANT TO MARKET LEVEL:-

53

SUMUL DAIRY

Milk Receiving

Testing of Milk

Processing

Processing

Processing

Packing

Delivery

Storage

Market

PROCESS FLOW FROM VILLAGE TO CHILLING CENTRE:-

54

SUMUL DAIRY

Milking by Producer

Producer approaching DCS

Collection at DCS

Grading & Testing at DCS

Transportation to Chilling Centre

Testing at Chilling Centre

Receiving at Chilling Centre

Transportation to Dairy Plant

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SUMUL DAIRY

CHAPTER CONTENT: 6.9 HUMAN RESOURCE ACTIVITIES 6.10 MANPOWER PLANNING 6.11 RECRUITMENT AND SELECTION PROCESS 6.12 TRAINING AND DEVELOPMENT 6.13 EMPLOYEMENT RELATION

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SUMUL DAIRY

6.9 HUMAN RESOURCE ACTIVITIES:SUMUL believes that the most significant resources are its Human Resource and SUMUL’S success in the long run depends very much on the quality of its human resources. Human resources comprise the aggregate of employee attributes including knowledge, skill, experience and health, which are presently and potentially available to the organisation for the achievement of its goal, objectives and service to the society. To achieve this and to diffuse the effect of Global Competition, Sumul has adopted the latest concepts of Management practices and provided appropriate training with the help of leading institutes from time to time for up-gradation & development of its Human resource. Other activities which are followed by the H.R.D. & E.R. are as follows:  Recruitment and Selection  Performance Appraisal  Promotion  Transfer  Demotion  Welfare Activities  Training and Development  Induction Training  Employee Relation  Motivation System All the activities of H.R.D. & E.R. Department are done under the Factory Act. The organisation has to follow all the rules of Factory Act. If they disobey any rules of Factory Act, The organisation has to pay penalty.

57

SUMUL DAIRY

6.10 MAN POWER PLANNING PROCESS:First of all the organisation follow man power planning process through which they find man power planning or sources for the organisation.  The man power process is done by the Managing Director or Board of Directors.  If the necessities arise in any department of the organisation then the Head of that department tells to the Managing Director.  Then, the Managing Director gives response in Yes or No. If the Managing Director gives response with Yes, then the Head of that department will follow the recruitment process, or if the Managing Director gives response with No then they will stop their process.

6.11 RECRUITMENT PROCESS:There are two ways for recruitment process which are mentioned below:  Internal Recruitment  External Recruitment Both the types of the recruitment process are used in the organisation.

 INTERNAL RECRUITMENT: ~

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SUMUL DAIRY Generally internal recruitment is done by the promotion and training programs which are under taken by the organisation.

 EXTERNAL RECRUITMENT: ~ External recruitment is done by three major types which are mentioned below:  ADVERTISING: ~ The organisation gives advertisement in the newspapers.  EMPLOYMENT EXCHANGE: ~ With the help of these types of agencies which provide a wide range of services, counseling, assistance in getting jobs, and information regarding labour market, labour and wages rates etc.  CAMPUS INTERVIEW: ~ The authorities of the organisation visit the S.M.C. Technical College at ANAND or educational institutes and arrange the campus interviews for recruiting best candidates.

SELECTION PROCESS:By considering the following steps the selection process is done:  First of all they see the response form the candidates i.e. how many applications are collected for the job.  Then, they send call letters to qualified and experienced candidate.  Then, interviews are done. Interviews are done by the committee members in which M.D., B.O.D. or SUMUL’S higher authority persons are included.  Then, they sent appointment letter to the short listed candidates. 59

SUMUL DAIRY

DOCUMENT SELECTION:-

RELATED

TO

RECRUITMENT

AND

The organisation keeps the records of recruited and selected employees for the job.  They keep a separate file for the application of candidates.  They keep file for the call letters of selected candidates.

PERFORMANCE

APPRAISAL

PROCESS AND DOCUMENTS:Performance of the employees is done and the employees always perform better for that they decide increments. The organisation decides increments in three ways:  After completing the recruitment and selection procedure the performance of the applicant can be checked. The organisation gives them a special project to complete. After completing the project, it can be checked by the authorised person of that department. If the trainees complete their projects satisfactorily then, they are appointed otherwise they are terminated from the organisation.  ACCORDING TO PERFORMANCE: ~ The organisation decides increments according to the performance of the employees. How they behave with others? , Are they finished their work in given time with satisfactorily? etc. According to this the

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SUMUL DAIRY organisation decides the increment. For that they keep record of the employees in separate file.  ACCORDING TO PERFORMANCE FORM: ~ The organisation issues the performance form. In this form all the information regarding the employees are included. The forms are submitted to M.D. If the M.D. tells yes, then the employees get their increment. If the M.D. replies in no, then the head of the department discuss with the M.D., how to improve the performance of the employee.

PROMOTION POLICY:This is not working as PUBLIC sector but it is a Co - 0perative sector. According to the performance of the employee, promotion is given. It is not necessary that the employee will get promotion. The organisation gives upgradation. Upgradation means without change of job movement of an employee to a higher pay scale. The organisation decides upgradation two times:  After 14 years  After 23 years, in this upgradation if someone is Senior Executive, he will become an Executive Officer.

TRANSFER POLICY:According to working scenario, the organisation will do transfer and it is cleanly mentioned in the appointment letter.

DEMOTION POLICY:There is no as such demotion policy in the organisation and there is no also V.R.S. scheme in the organisation.

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SUMUL DAIRY

DIFFERENT WELFARE ACTIVITIES:The organisation does so many welfare activities for human resources and these activities are given below:  REST ROOM: ~ The organisation provides a separate rest room for the employee to take rest their after a long hours or after lunch time.  CANTEEN FACILITY: ~ The organisation provides the canteen facility for the employee for their break fast, lunch and dinner at very economical rate.  VEHICLE PARKING FACILITY: ~ The organisation has a very large parking facility for their employees’ and visitors’ vehicles.  HOUSING FACILITY: ~ The organisation provides the housing facility for their employees near the organisation so that they can easily and on the time reach at the organisation. The organisation has quarters for their employees.  WASHING FACILITY: ~ Clothes washing facility is provided by the organisation for their employees.  LOCKER FACILITY: ~ The employees have to work without any gadgets and they have to wear the uniform of the organisation, so that for the safety of their clothes and gadgets, the organisation provides locker facility in which the employee put their clothes and gadgets.  UNIFORM, SHOES, CAPS AND RAINCOAT: ~ 62

SUMUL DAIRY All the employees are provided uniforms, shoes, caps and raincoats by the organisation.  HOUSE RENT FACILITY: ~ The employees who are living in rental house, for that the organisation provide house rent facility.

 DEPARTMENTAL STORE: ~ To purchase the necessary items at economical rates, there is KAMDHENU departmental store in the Staff Ready Credit Society Staff Quarters, for the employees.  DRINKING WATER FACILITY: ~ To provide the child water facility to the employees, the organisation has neat and clean water cooler facility in the different departments.  FUNERAL FUND FACILITY: ~ The organisation provides the “Funeral Fund Facility” for the employees. For this fund the employees have to contribute Rs. 10 and the employers have to contribute Rs. 20. The employees get different benefits from this fund which are mentioned below:  On the death the employees, Rs. 7,000 will be provided by the organisation from this fund or on the death of any family member from the employee’s family then the organisation provides Rs. 2,000.  The organisation provides loans for the children of the employees for education. The organisation provides Rs. 10,000 for the technical stream students. The employee has to repay the loan amount in 36 installments.  For the employees medical treatment the organisation provides the medical expenses.

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SUMUL DAIRY  On the retirement of the employee, the

organisation provides a cheque from this fund. VEHICLE LOAN FACILITY: ~

 the employees.

The vehicle loan facility is only provided to executives only not for

 MEDICAL FACILITY: ~ If any accident occurs during the working hours in the organisation, the organisation provides this first aid facility to the employee for their quick remedy. Sumul Ambulance Centre, Group Insurance, Regular Medical Checkup & X-ray, helping to prevent bad habits, Superannuation Scheme takes care as a preventive approach towards the medical & health of the employees.  SAFETY FACILITY: ~ SUMUL has made provision for a Safety Officer who is qualified in the Safety aspects and employees are provided with Safety equipment & devices for usage at appropriate places. Safety in observed in terms of "Safety for All" wherein Safety is not only for its employees but also for the safety of Physical material like Equipment's, Building, Materials and the Safety of the Products which is supplied to the customers. For food safety the organisation is already HACCP certified. For updating the employee's knowledge on Safety aspects, programs on Safety awareness are organized regularly. OTHER FACILITY: ~

In the mandatory, the organisation provides pension, gratuity, provident fund facility, etc. Other Welfare provisions includes Employees Credit Society and provisions for Medical Loan, Educational Loans, Subsidized Stationery items, Retirement benefits through "SURAT JILLA SAHAKARI DUDH UTPADAK

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SUMUL DAIRY SANGH LTD. SARVAJANIK CHARITABLE TRUST" are extended to the employees as well as their family members. For further improving involvement of its human resources, Sumul sponsors its employees for Higher Education, promotes participation through competition, arranges visits and programs for Sharing experiences with other organisation, recognizes & rewards achievements in programs, conducts meeting with MD & different committees, underges wage settlements directly with employee representatives, Shares information through In-house magazine "SUMUL SETU".

EMPLOYEMENT RECORDS KEPT:After the selection of employee when he is joining the organisation, the employee has to submit a form which contains some information regarding his personal life or some other information which is stored in computer and is maintained by establishment sector. This form contains the following information:  The name, birth date, age, height, weight, passport size photo, power of classes, marks of identification, present address, permanent address, nationality, father’s name, marital status, etc.  The academic data, percentage obtained in S.S.C., other vocational qualification, past and present employment data, language known, hobbies and interest, information regarding accomplishment, achievement, reference, etc.  Attach certificate/Xerox copy of certificate in support of age, academic qualification, experience, etc.

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SUMUL DAIRY

6.12 TRAINING AND DEVELOPMENT:In the organisation the employees are trained at three different levels:  C.E.O. or top management training  Officer training  Senior executive training

 C.E.O. OR TOP MANAGEMENT TRAINING: ~ The top management training or C.E.O. training is given for six months.  OFFICER AND SENIOR EXECUTIVE TRAINIG: ~ The management development program organised by the institute for the training of officers and senior executive and they have to attend the program.

INDUCTION TRAINING:The induction training means to introduce the new employee with the organisation and colleagues so that he/she easily join their work without feeling nervousness.  In SUMUL there is 7 days of induction training program.  First of all the new employee is introduced with the organisation.

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SUMUL DAIRY  Then, the employee is oriented with the higher management and other department.  Then, he/she is introduced with his/her department and their colleagues.

6.13 EMPLOYEE RELATION:In SUMUL there is no department called “INDUSTRIAL RELATION” but they perform in “EMPLPOYEE RELATION”. Thus, in SUMUL the name of this department is “H.R.D. AND E.R. (Human Resource Development and Employee Relation Department)”. The organisation does not have to perform any activities for the trade unions, because the organisation does not have any trade unions. The organisation performs different activities for the employee relation some of them are mentioned below:  SOCIAL SECURITY MEASURES: ~ The organisation does many activities for social security measures:  The organisation takes steps to prevent the residential from the pollution.  They also take care for no disturbance to residential.  The organisation also does the plantation programs. On the SUMUL DAIRY ROAD all the plantation is done by the SUMUL. Sumul Dairy’s Contribution towards Society:Sumul dairy organizes some activities and programs for welfare of society. Like: Healthy baby contest. Free distribution of milk to needed. Loans and cattle feed to poor farmers and insurance. 67

SUMUL DAIRY Animal husbandry. Regular health check up for cows and buffaloes. Eye check-up camp.

We can understand it by seeing the following data. From 1rs. Of income Sumul pays more than 83% to farmers. And very few amount spends on other activities.

FROM WHERE RS.1 COME (INCOME):-

PARTICULARS MILK SALE PRODUCT SALE CLOSING STOCK OTHER INCOME

PAISE 0.77 0.17 0.05 0.01

0.05 0.17

0.01

WHERE 1 rs. COMES

MILK SALE PRODUCT SALE CLOSING STOCK OTHER INCOME

0.77

WHERE RS.1 GOES (EXPENDITURE):PARTICULAR MILK PURCHASE SALARIES / WAGES PACKING TRANSPORTATION RESEARCH & DEVELOPMENT WATER, ELECTRICITY, FUEL PAISE 0.83 0.04 0.03 0.02 0.02 0.02

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SUMUL DAIRY PROCESSING MAINTAINANCE DISTRIBUTION DEPRECIATION 0.01 0.01 0.01 0.01

WHERE 1 rs. GOES

MILK PURCHASE SALARIES / WAGES

0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.03 0.04

PACKING TRANSPORTATION RESEARCH & DEVELOPMENT WATER, ELECTRICITY, FUEL PROCESSING MAINTAINANCE DISTRIBUTION DEPRECIATION

0.83

 LEADERSHIP AT VILLAGE LEVEL:In order to develop village level leadership, SUMUL is conducting various developmental training programmes. These training programmes provide training in understanding of farmers’ need. Training programmes perform a good role for the people of rural area. For the Leadership training programmes in rural area, a Chairman of milk societies creates a team. From amongst chairman of private milk society, the district level leadership emerges. This district level leadership is now B.O.D. and they are elected by the farmers’ representatives. SUMUL is conducting various programmes since 1992 are as follows:  Women and member education class.  Committee member education class.  Society staff training class.

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SUMUL DAIRY  Leadership development class.  Women/member follow up programmes.  Milk day programmes.  Clean milk production programme.  Women dairy leadership development programmes.  Vision – Mission programmes.  MOTIVATION SYSTEM: ~ The employees are motivated through ways in the organisation which are mentioned below:  Financial Motivation  Non Financial Motivation

 FINANCIAL MOTIVATION: ~ In financial motivation only increment is given to the employees. The increment is decided two times by the organisation:  In January  In July If the employee joins the organisation between 1st January to 30th June, then his increment will count in July and vice versa.  NON FINANCIAL MOTIVATION: ~ The non financial motivation is given to the employees in many ways:  If the employee’s grievances are low but he/she is satisfied with the jobs and colleagues then he/she is motivated to work hard.  The employees and workers are free to talk with the M.D. to discuss their problems.  If the performance of any employee is poor in the organisation then there is personal counseling is done. The M.D. and other authority

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SUMUL DAIRY try to understand the employee’s problem and then, the employee is given enough time to change himself and attitude. All these HR efforts have resulted into Cost cutting as continuous process, improvement in Overall Equipment Efficiency, more delegation down the level, positive attitude, improvement in habits, and reduction in absenteeism of employees, improved Internal & External Customer Satisfaction, and ultimately SUMUL’S achieving awards year by year.

CHAPTER CONTENT:6.14 PRICE, PRODUCT, PLACE AND PROMOTION 6.15 SEGMENTATION AND TARGET MARKET 6.16 SUMUL MILK MARKETING 6.17 CUSTOMER SATISFACTION

71

SUMUL DAIRY

6.14

PRICE, PRODUCT, PLACE AND PROMOTION:PRICING POLICY:-

The pricing policy of SUMUL is fixed. It is based on the GUJARAT CO – OPERATIVE MILK MARKETING FEDERATION’S (GCMMF) structure. The pricing policy should include the production cost, transportation expenditure i.e. from the manufacturer to distributor and further. It should include the commission of the agents and profit margin of the firm. PRICE = PRODUCTION COST + TRANSPORTATION EXPENDITURE - COMMISSION - PROFIT MARGIN [NOTE: ~ This information is collected from the secondary source.]

72

SUMUL DAIRY

Products Mix: “The set of all products and items that a particular seller offers for sales to buyer.”

73

SUMUL DAIRY

Liquid Milk

Milk Products

Self Developed Products

Butter Milk Whole Milk Paneer Ghee Pasteurized Standard Milk Flavors Milk White Butter Sweets Homogenize d Toned Milk Skimmed Milk Powder Shrikhand Skimmed Milk

Butter Milk

Sumul Sugar

Cow Milk

Sumul Tea

TYPES OF PRODUCTS: ~ 1. SUMUL FRESH MILK
 SUMUL MILK

74 Milk Products

SUMUL DAIRY

SUMUL D’LIGHT

SUMUL ESL MILK (1 LT)

2. SUMUL FLAVOURED MILK
 SUMUL JOM (POUCH) (200 ML)

75

SUMUL DAIRY

SUMUL JOM (BOTTLE) (200 ML)

SUMUL JOM (ESL) (1 LT)

SUMUL JOME (ESL) (200 ML)

76

SUMUL DAIRY

3. SUMUL MILK PRODUCT
 CHASS

MASALA CHASS

MITHI CHASS

77

SUMUL DAIRY

SUMUL GHEE

SUMUL PANEER

GULAB JABUN

78

SUMUL DAIRY

RASGULLA

MALAIPURI

SUMUL GHARI

79

SUMUL DAIRY

ELAICHI PEDA

KESAR PEDA

ELAICHI SHRIKHAND

80

SUMUL DAIRY

KESHAR PISTA SHRIKHAND

ANGOOR RABADI

4. SUMUL TEA & SUGAR

81

SUMUL DAIRY

SUMUL SUGAR

SUMUL TEA

Channel of Distribution (PLACE):

82

SUMUL DAIRY

Dairy

Agent

Customer

1. Direct 2. Indirect 1. Direct Distribution Channel : Sumul is handling 1900 outlets for selling their buttermilk, tea and sugar. 2. Indirect Distribution Channels :
Sumul is distribution various products that are milk & other than milk there are 3 major distributors in Surat city & 19 distributors in rural areas. All dairy co-operative society acts as a distributor for all Sumul products. In Surat city Sumul is creates 3400 outlets; Sumul has their own 44 milk parlors which are in direct contact with the customer. Information technology growing very fast and Sumul always ahead in technology. Customer should be got advantage of these technologies for this reason Sumul Started online shopping facility to Direct Customer as well as Distributor and parlor also net facilities like.

Direct Customer Distributor and parlor

www.sumuldairy.com www.b2bsumul.com

PROMOTION ACTIVITIES:-

83

SUMUL DAIRY SUMUL is doing so many types of promotional activities one of them is mentioned here:  Purchasing of 2 LTS. GHEE in tin gets FREE 50 GR. TEA – 2 PKTS.  Purchasing of 1 LT. + 1 LT. GHEE in tin gets FREE 50 GR. TEA – 1 PKT.  Purchasing of 1 LT. + 1 LT. GHEE in pouch gets free 50 GR. TEA – 1 PKT.  Purchasing of 500 ML. + 500 ML. GHEE in pouch gets free 50 GR. TEA – 1 PKT.  Purchasing of 4 pouches of 200 ML. GHEE gets free 50 GR. TEA – 1 PKT. Sumul also organizes promotion activities like:  Take part in Exhibitions.  Schools in some Free distribution of flavored milk in occasions.

 Invite School / Colleges to visit their plant.

6.15 SEGMENTAION AND TARGET MARKET:Every month SUMUL is organising survey programmes to know their market share. All the records are done in ORACAL system. The employees of the organisation approach to the consumers by many ways:  Giving advertisement in local T.V. channels  Advertising by hoardings  Rasoi contest  Partners of change  Paneer show  Home visiting

84

SUMUL DAIRY Thus, by doing different types of programmes and advertisement SUMUL know their market share. In Dairy Industry SUMUL Dairy is wide term. SUMUL has the market leaders in almost each dairy product in Surat District:

PRODUCT MILK PANEER GHEE SHRIKHAND AND SWEETS

MARKET SHARE 70% 50% 70% 15%

6.16

SUMUL’S MILK MARKETING:-

SUMUL’S milk marketing in Surat city is monitored, eliminating costly sales-booths and through regular and assured twice a day supply of milk to 1662 concessionaires (Agents) and 198 institutional buyers, through 85 contractors' route vehicles. There is guaranteed cash inflow of the sales proceeds on day-to-day basis and safe return of crates etc. to the Dairy. The standardised/pasteurized milk is despatched to the city twice a day to the network of concessionaires (selling it on behalf of SUMUL on a commission basis). The institutional buyers are supplied milk in sealed cans. Contractors' trucks carry milk from the Dairy Plant to the places of these concessionaires who cater to the domestic demand of milk in their respective earmarked areas. Both economic and operational advantages of keeping the salescounters at the residential places of the Agents are distinct as:  No creation OR maintenance of these sales-counters is involved.  All time security of milk, material and money.  Operational convenience to deliver milk and off take of crates etc. from these permanent places at any time, including odd hours

85

SUMUL DAIRY  Utilization of Agent's family, labour and residential place and hence very economic operation for them and the Dairy.  Familiarity of the Agents with the locality and vice-versa and hence smooth dealing under mutual confidence. The institutional buyers include hotels, restaurants, canteens, hostels, charitable institutions, milk vendors etc. who enter into contract for purchase of milk for the entire year and receive milk as per the contract, twice-a-day, in sealed cans, through the contractors' milk routes and make the full payment to the Dairy Representative just at the time of delivery of milk to them. The Contractors are responsible for any shortage, breakage OR pilferage of milk and material occurring during transportation. While the Agents hold the responsibility of any such incidence occurring at their level. There is regular, assured and smooth in-flow of cash from milk sales from the Agents to the Dairy's Cash Collection Centers on day-to-day basis without involving a bank for collection of sales-proceeds and maintaining individual accounts. Milk delivered to these Agents during the day is sold by the Agents and the sale-proceeds are deposited by them daily at the nearest Cash Collection Centre of the Dairy. These Centers are run by the Dairy for all 365 days in a year for regular day-to-day receipt of cash amount. For any default on the part of the Agent, such as nonpayment or short-payment of cash, corrective action is taken almost instantaneously by the Dairy. Normally, such incidents are very few and far between and are rectified without any problem. With day-to-day contacts and experience, all the Agents are known and SUMUL’S money is held to be quite safe with them since the cost of three days milk supply is taken as deposit from them in advance. They are paid interest on this and it is distributed to them yearly by adding it to their milk commission. SUMUL also encourages a small Savings Scheme for the Agents by deducting a particular amount from their commission every

86

SUMUL DAIRY month and transferring the same into their deposit amount, thereby allowing the deposit to build-up every month, which gets additional security to the Dairy as well as to these Agents. Any amount in excess of three times, the realisation from the daily sales can be withdrawn by the Agent any time during the year. Currently the commission of 40 paisa per liter is paid to the Agent.

6.17 CUSTOMER SATISFACTION: Needs:  Hording & banners of Sumul products are used for advertisement.  Change have been done in packing & slogans of few production  Door to door advertisement is done for new products.  Facility of taking loans from bank for vehicles & refrigerators are given to agents.  The schoolboys & girls, who are the future customer, are educated about Sumul milks & milks products & its purity.  A mobile van with facility to test milk, show films to customer & address public regarding the hygienic aspects of Sumul milk.  Cash center has been opened in different areas & through bank so that the agent can deposit their cash daily.

Feedback

87

SUMUL DAIRY

 After personal visit to customers & explaining the causes of complaint.  Replacement is given for storage milk or low weight milk pouches.  If agents changes more than MRP than they are fined & even terminated.  Agents may also be terminated for his unwanted behavior.  Customer satisfaction is most important for the organization.  The organization goes for consumer survey to know their preferences & intended Demand.  A separate wing is creating in the sales department who takes care of customer complaint. Consumer forums in different areas are formed and regular meeting are organized to address their grievances.  Complains are received either by the letter or telephone.  Complains are entered in to the customer complaint resister.  Seeing the nature of complaint, action is taken. Complain:      Curding of milk Low weight Price changed by the agent more than MRP Agent’s Behavior Leakage

Complain Process Steps:  Receive the complain • Complains are received either by the letter or telephone.  Complaints are entered in to the customer complaint resister  After the proper evaluation of complains the necessary steps or action are taken by the marketing department.

88

SUMUL DAIRY

CHAPTER CONTENTS:6.18 FINANCIAL DATA 6.19 BUDGETING 6.20 6.21 6.22 FINANCIAL AUDIT RATIO ANALYSIS WORKING CAPITAL

6.18 FINANCIAL DATA:89

SUMUL DAIRY

Cost is one of the main factors affecting finance department. There are lots of control techniques through which companies can control their cost. Costing is the factor that affects the pricing as well as profits of the company. If the costs are controlled then the company can fix competitive price and achieve targeted returns. If the company is able to get the cost at minimum level then can get an additional benefit over their competitors. To control Cost Company might have to: 1. Replacement of worm out machines and equipments with new ones. 2. Make or buy decision 3. Extension of existing production plant. 4. By having latest technology machines and equipment. 5. By producing large quantities of products. 6. Controlling the inventory levels. 7. To do investments where maximum returns can be achieve.

Cost Structure of Product: Production cost + Transport expenditure + Profit Margin + Commission

90

SUMUL DAIRY

6.19 BUDGETING:BUDGET OF YEAR 2008-2009

N

Particulars

Sumul Sumuldan Dair Factor y y - Surat Rs (in lac) - Chalthan Rs. (in lac)

Food pack agin g Station Rs. (in lac)

Total

Rs (in lac )

Purchase and Expenses: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Milk purchasing Transport Expenses Research & Developement Processing Expenses Packaging Expenses Total of 1 to 5 No. Light and Water Salary Provident Fund Repairing Expenses Distribution Expenses Stationary Expenses Insurance Municipal tax Audit fees Other Expenses Interest Depreciation Provision for Income Tax 54250 1330 1355 665 2000 59600 970 1600 500 570 720 65 150 25 60 60 300 600 60 5680 170 65450 65000 450 8725 80 575 9380 215 115 32 80 180 5 10 5 10 2 15 75 744 26 10150 10100 50 1160 64135 1330 1355 745 2585 70150 1185 1719 533 651 902 71 161 30 70 63 317 677 60 6439 211 76800 76295 505

10 1170 4 1 1 2 1 1 1 2 2 15 15 1200 1195 5

Total of No.6 to 18
19 1 2 Surplus per Profit Total Sales Other Income

Total

65450

10150

1200

76800

91

SUMUL DAIRY

CAPITAL BUDGET OF YEAR 2008-2009 N O.
1.

Particulars SUMUL DAIRY SURAT:
MACHINARY BUILDINGS AND ROADS

Amount
(Rs. in lac) 952.00 261.50

Amount
(Rs. in lac)

1213.50

2.

BAJIPURA SHIT CENTER:
MACHINARY BUILDINGS AND ROADS 32.00 80.00 112.00

3.

UCHHAL SHIT CENTER:
MACHINARY BUILDINGS AND ROADS 17.50 86.00 103.50

4.

SUMULDAN CHALTHAN:

FACTORY
157.00 100.00 257.00

MACHINARY BUILDINGS AND ROADS

5.

NEW PARDI SHIT CENTER:
MACHINARY BUILDINGS AND ROADS 25.50 40.00 65.50

6.

NIZAR SHIT CENTER:
MACHINARY BUILDINGS AND ROADS 5.50 5.00 10.50

7.

NASHIK:
MACHINARY BUILDINGS AND ROADS 50.00 75.00 125.00

TOTAL

1887.00

1887.00

92

SUMUL DAIRY

6.20 FINANCIAL AUDIT:PROFIT & LOSS A/C
31 – 03 – 2007 (Rs.) 23,45,02,345 5,16,29,71,071 12,43,57,331 10,53,01,246 4,98,13,691 24,17,41,124 10,83,01,903 15,11,58,983 3,88,72,509 5,40,15,263 8,40,89,489 40,57,051 77,70,586 15,59,975 59,56,476 38,35,379 2,07,17,824 5,21,28,608 46,00,000 ----1,63,31,368 6,47,20,82,222 EXPENDITURE To Opening Stock To Purchase To Transport Society To Research & Extension To Processing Expenses To Packing Expenses To Power & Fuel & Water To Wages & Salary Expenses To P.F. & ESI To Repairs and Maintenance To Distribution Expenses To Stationary-Postage Expenses To Insurance & Legal Fees. To Vehicle Tax and Municipal Tax To Continuous & Concurrent Audit Fees. To Miscellaneous Expenses To Interest & Bank Commission To Depreciation To Provision for Income Tax To Bad & Doubtful Debts To Net Profit 31 – 03 – 2008 (Rs.) 34,81,28,279 6,02,88,02,530 12,59,79,623 13,40,47,192 5,41,65,024 24,62,50,373 11,58,68,268 16,43,79,705 4,97,28,353 5,51,61,657 9,18,66,472 46,24,571 1,34,86,896 16,46,026 61,52,977 46,47,881 2,15,30,155 6,40,91,651 60,00,000 ----2,07,61,681 7,55,73,19,314

TRADING & PROFIT AND LOSS A/C FOR THE YEAR ENDED 31ST MARCH 2008 31 – 03 – 2007 (Rs.) 6,06,85,26,718 5,54,27,225 34,81,28,279 6,47,20,82,222 INCOME To Sales To Other Income To Closing Stock 31 – 03 – 2008 (Rs.) 6,99,84,77,872 4,14,16,558 51,74,24,884 7,55,73,19,314

93

SUMUL DAIRY

TOTAL NO. OF ASSETS: ~
31-3-2007 2,26,67,838 17,29,19,003 1,51,53,232 Particular 31-3-2008 Land and Road 1,85,17,409 Factory and Other 13,92,71,506 Building Staff, Quarters 89,54,215 and 49,48,98,687 1,12,88,464 3,15,74,730 Building Plant Machinery Vehicles Furniture Fixtures 92,54,835 54,84,320 76,68,41,109 Equipments Crates/Cans Plastic Current Repairing Hostel and 17,99,93,977 57,92,909 – 2,14,27,386 and 1,41,863 7,02,845 37,48,01,750

TOTAL NO. OF FUNDS: ~
31-3-2007 4,62,60,583 1,74,90,922 1,32,42,260 40,26,328 19,68,068 20,21,319 5,67,466 4,10,604 5,13,08,475 13,72,96,025 Particular Reserve Fund General Reserve Fund Capital Subsidiary Fund Doubtful Debts Fund Dividend Equalization Fund Research and Development Fund Charity Fund Co-operative and Education Fund O.F. 2nd Fund 31-3-2008 5,01,53,955 1,99,35,257 1,70,21,860 40,07,199 30,54,439 31,07,690 11,10,652 6,82,197 5,13,08,475 15,03,81,724

94

SUMUL DAIRY

6.21 ANALYSIS OF P & L A/C AND BALANCE SHEET BY RATION ANALYSIS: CURRENT RATIO:(FOR CURRENT YEAR) Current Assets Current Ratio = Current Liabilities Current Assets = Stock + Debtors + Cash Current Assets = 54,47,01,276 +75,49,00,370+17,84,93,131 Current Assets = 1,47,80,94,777 Current Liabilities = 1,34,53,70,370

95

SUMUL DAIRY

1,47,80,94,777 Current Ratio = 1,34,53,70,370 Current Ratio = 1.09

ANALYSIS AND COMMENT:Current Ratio measures the solvency of the company in the short term. A Current Ratio of 2 : 1 indicates a high solvency position. During the year 2007 – 2008 the Current Ratio of SUMUL is 1.1 : 1.

 LIQUID RATIO:(FOR CURRENT YEAR) Liquid Assets Liquid Ratio = Liquid Liabilities Current Asset-Stock Liquid Ratio = Current Liabilities – B.O.D. 1,47,80,94,777-54,47,01,276 Liquid Ratio = 1,34,53,70,370 93,33,93,501 Liquid Ratio = 1,34,53,70,370

96

SUMUL DAIRY

Liquid Ratio ANALYSIS AND COMMENT:-

= 0.69

Liquid Ratio is used as a measure of the company’s ability to meet its current obligations. Liquid Ratio of 1 : 1 indicates highly solvent position. During the year 2007 – 2008 Liquid Ratio of SUMUL is 0.69 : 1.

97

SUMUL DAIRY

 DEBT EQUITY RATIO:(FOR CURRENT YEAR) Long Term Liability Debt Equity Ratio = Owner’s Fund Owner’s Fund = Share Capital + Reserve & Surplus + P & L A/C Owner’s Fund = 4,27,29,900 + 15,03,81,724 + 2,07,61,681 Owner’s Fund = 21,38,73,305 4,54,500 Debt Equity Ratio = 21,38,73,305 Debt Equity Ratio = 0.002

ANALYSIS AND COMMENT:Debt Equity Ratio indicates the relationship between loan fund and net worth of the company. A Debt Equity Ratio of 2 : 1 is the norm accepted by the financial institutions for financing of projects. A Debt Equity Ratio of 2007-2008 is 0.  LONG TERM FUND TO FIXED ASSETS:(FOR CURRENT YEAR) Long Term Fund Long Term Fund to Fixed Asset = Fixed Asset Long Term Fund = Long Term Loans + Share Capital + Reserve & Surplus + Debentures + P & L A/C Long Term Fund = 2,37,74,301 + 4,27,29,900 + 15,03,81,724 + 4,54,500+ 2,07,61,681

98

SUMUL DAIRY Long Term Fund = 23,81,02,106 23,81,02,106 Long Term Fund to Fixed Asset = 23,60,61,761

Long Term Fund to Fixed Asset = 1.01

ANALYSIS AND COMMENT:This ratio indicates the proportion of long term funds deployed assets. The higher the ratio indicates the safer funds available in case of liquidation. It also indicates the proportion of long term funds that is invested in working capital. During the year of 2007 – 2008 this ration is 1.01: 1.

DEBTOR’S RATIO:-

(FOR CURRENT YEAR) NOTE:- Here there is no specification of credit sales so, whole sales is considered as credit sales. Debtors + Bills Receivables Debtor’s Ratio = 365 Total Credit Sales 17,84,93,131 Debtor’s Ratio = 365 6,99,84,77,872

Debtor’s Ratio

= 9.31 days

99

SUMUL DAIRY ANALYSIS AND COMMENT:In this ratio the collection period is as possible as low. In the following calculation the debtor’s collection period for the year 2007– 2008 is 9.

DEBTOR’S TURNOVER RATIO:-

(FOR CURRENT YEAR) No. of Days in a Year Debtor’s Turnover Ratio = Debtor’s Ratio 365 Debtor’s Turnover Ratio Debtor’s Turnover Ratio = 9 = 40.55 Times

ANALYSIS AND COMMENT:During the year 2007 – 2008 the Debtor’s Turnover is 41 times.

100

SUMUL DAIRY 6.22

WORKING CAPITAL:Working Capital As on 31-3-2008 PARTICULAR RS. RS.
4,41,007 2,42,94,590 41,18,74,033 8,12,56,261 2,10,74,982 62,01,410

A) CURRENT ASSET
Cash Stock:Milk Stock Products Stock Raw Material Cattle Feed General Stores Vete. Medical Stock Debtors A) TOTAL CURRENT ASSET B) CURRENT LIABILITY Creditors B)TOTAL CURRENT LIABILITY NET WORKING CAPITAL (A-B)

54,47,01,276 17,84,93,131 72,36,35,414 2,93,13,901 2,93,13,901 69,43,21,513

STORE DEPARTMENT:ORGANISATIONAL STRUCTURE:

Store Division

101

SUMUL DAIRY


Raw Material


Finished Goods


Manager


Assistant Manager


Senior Executive


Clerks


Junior Executive


Peon

ACTIVITIES:
Store Department performs following activities: 1. 2. 3. 4. 5. Storing Raw Materials and Finished Goods. Providing the equipments whenever enquired. Maintain bin cards. Prepare indent letters. Keeping records of material used purchased

and current stock.

PROCEDURE:
When new purchase of Raw Material is done, that material is sending to the Store Department. In the Store Department Store Manager received the ordered material and verified the quality and

102

SUMUL DAIRY quantity of the ordered material. Then he put entry of the material in his Computer Oracle System and product is stored in the Store Department. When any process of the finished good is stop due to scarce of material then process manager run to the Store Department and applying for issue the material by filling the form namely Material Issue Docate (MID). Then Store Manager sends the required quantity to the concern manager and deducted that quantity form the real quantity.

DISPATCH DEPARTMENT: ORGANISATION STRUCTURE: Manager


Senior Executive


Junior Executive


Assistant


Workmen

ACTIVITIES:
Dispatch Manager performs following activities:

103

SUMUL DAIRY 1. 2. 3. 4. 5. 6. Dispatch Manager receiving the orders from He prepares the demand of the ordered He prepares the dispatch note form the ordered He prepares the Gate pass. Dispatch the goods in the route trucks. Conf

agencies. Quantity. quantity.

104

SUMUL DAIRY

CONCLUSION

Conclusion:
105

SUMUL DAIRY

For the requirement of completition of 4th semester of B.B.A. We had undergone two months summer training at “SURAT DISTRICT CO-OPERATIVE MILK UNION LTD. (SUMUL), Surat.” With the objective to gain Practical knowledge and experience in the company and to study the activities of different functional area. Sumul Dairy’s daily production is 7,00,000 to 8,00,000 liters. Sumul Dairy’s main product is Milk, Flavored Milk, Ghee, Paneer, Chees, Butter, Milk Powder etc. Sumul Dairy invites woman and gives the knowledge of cooking & arrange competition between them. They invite schools and colleges to visit and tour their plants. They also arrange any other competition like painting, baby health & provide milk to schools and colleges when they arrange sports day. They study customer needs and wants in well-defined market segment. They continuously gather and evaluate ideas for new products, product improvements and services. They feed back customers’ needs and ideas to those in charge of product development. They prepare periodic “profitability” reports by product, market segment, geographic areas ( regions sales territories), order sizes, channels, and individual customer. They tailor the financial package to the customer’s financial requirement.

BIBLIOGRAPHY:

106

SUMUL DAIRY

BOOKS:
 MARKETING MANAGEMENT BY “PHILIP KOTLER (TWELFTH EDITION)”  HUMAN RESOURCE MANAGEMENT BY “C.B.GUPTA”  ANNUAL GENERAL REPORT OF SUMUL DAIRY FOR THE YEAR OF 2007-2008

WEBSITES:
 www.sumuldairy.com  www.wikipedia.com / Sumul Dairy

ANNEXURE

107

SUMUL DAIRY

BALANCE SHEET AS AT 31ST MARCH, 2008 (ASSETS) 31 – 03 – 2007 (Rs.) ASSETS Assets: 29,83,23,479 4,77,44,132 28,09,523 1,84,06,337 26,14,71,375 6,82,50,567 2,54,30,905 36,23,116 37,71,82,300 (As Cost Less 37,48,01,750 4,97,44,132 28,09,523 2,42,94,590 41,18,74,033 8,12,56,261 2,10,74,982 62,01,410 54,47,01,276 31 – 03 – 2008 (Rs.)

Depre.) Total Assets Investments: Share (At Face Value) Fixed Deposits (Short Term) Stock: Milk Stock Products Stock Raw Material Cattle Feed General Stores Vete. Medical Stock Advances & Sundry

54,47,01,276

20,40,99,829 54,711 5,40,26,404 46,00,000 68,10,827 2,09,85,489 29,05,77,260 3,26,63,158 8,65,38,181 5,47,123 35,00,00,000 46,97,48,462 1,48,63,85,156

Debtors: Trade Debtors Central Excise Income Tax Advance Tax Advance Tax – 2007 – 2008 Input Vat Tax(Receivable) Receivable Deposit Cash & Bank: Nationalised Bank Co – Operative Bank Cash Call Deposit

17,84,93,131 54,711 5,40,26,404 1,00,64,910 ----2,23,06,593 26,49,45,749 7,07,81,810 16,98,60,553 4,41,007 51,38,17,000 75,49,00,370

26,49,45,749

75,49,00,370 1,99,19,02,8 00

BALANCE SHEET AS AT 31ST MARCH, 2008 (LIABILITIES)

31 – 03 – 2007 Liabilities

31 – 03 –

108

SUMUL DAIRY (Rs.) 5,00,00,000 Authorized Share Capital: 5,00,000 Ordinary Share Rs.100 Each Share Capital (Issued & Fully 4,27,25,900 Paid up) 4,29,299 Ordinary Share Rs.100 each Redeemable Debenture: 909 Debenture Rs. 500 Each Reserve Fund and Other Funds: Total Funds Loan: N.D.D.B. (Operational Flood) Gujarat Govt. Revolving Fund Cattle Loan (I.D.B.I. Bank) Short Term Loan Current Liabilities & Provisions: Due To Societies Saving Societies Fixed Deposits Deposits Other Liabilities Provision For Income Tax Outstanding Expenses Trade A/C Creditors (Miscellaneous) 4,27,29,900 2008 (Rs.) 5,00,00,000

4,54,500 13,72,96,025 93,79,790 9,00,000 1,91,21,926 8,46,960 50,45,69,366 30,95,02,901 9,79,932 13,92,56,792 81,88,392 3,06,50,000 12,69,36,360 11,72,13,950 2,20,30,994 1,25,93,28,687 1,63,31,368 1,48,63,85,156

4,54,500 15,03,81,724 60,43,934 ----2,60,77,129 40,00,83,562 65,69,80,709 29,26,69,691 9,56,131 10,10,55,307 82,07,259 3,66,50,000 14,05,33,731 7,90,03,641 2,93,13,901 1,34,53,70,37 0

1,34,53,70,3 70 2,07,61,681 1,99,19,02,8 00

Profit & Loss A/C

109

SUMUL DAIRY

TURNOVER:-

Turnover(in crores)
700 600 500

647 548 425

400 300 200 100

353

382

183 78.11 0.41 18.83
1980-81 1990-91 1995-96 2002-03 2003-04 2004-05 2005-06 2006-07

0

1970-71

110

SUMUL DAIRY

111

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