INTERNSHIP TRAINING REPORT

For the field training done in

FRESH DAIRY PRODUCTS INDIA LIMITED
PUNJAI PULIAMPATTI
Submitted in partial fulfillment of the
Requirements for the degree of
BACHELOR OF COMMERCE
Submitted by
KAVIN RAJA.S
(Reg. NO: 171CO119)
Under the guidance and supervision of
MR.P.VIMAL KUMAR
M.COM, MBA, M.PHIL.
Assistant professor in commerce

DEPARTMENT OF COMMERCE
Dr.NGP ARTS AND SCIENCE COLLEGE
College with Potential for Excellence
An Autonomous Institution-(Affiliated to Bharathiar University)
Re-Accredited with ‘A’ Grade Status by NAAC
COIMBATORE -641048
JUNE - 2019
.

CERTIFICATE
 Dr. NGP ARTS AND SCIENCE COLLEGE
College with Potential for Excellence
An Autonomous Institution – Affiliated to Bharathiar University
Re-Accredited with ‘A’ Grade Status by NAAC

CERTIFICATE
This is to certify that Master. KAVIN RAJA.S (Reg.No:171CO119) of II B.Com has
undergone internship training during JUNE 2019.

Head of the Department Staff In-Charge

.

DECLARATION
 DECLARATION

I, KAVIN RAJA.S student of III-B.Com Dr.NGP Arts And Science college, Coimbatore,
hereby declare that this Internship Training Report is prepared by me after undergoing training
for two weeks in FRESH DAIRY PRODUCTS INDIA LIMITED in PUNJAI
PULIAMPATTI.

Place: P.PULIAMPATTI Signature:

Date: Name: KAVIN RAJA.S
ACKNOWLEDGEMENT
 ACKNOWLEDGEMENT
I take this opportunity to acknowledge with great pleasure, deep satisfaction and gratitude,
the contribution of many individuals in the successful completion of this internship training
report.
I express my deep sense of gratitude to Dr. Nalla.G.Palaniswami, chairman, Dr.N.G.P
Arts and Science College, for giving me the permission and opportunity to carry out this
internship training successfully.
My heartfelt and sincere thanks to Dr. V.Rajendran, Principal, Dr.N.G.P Arts and
Science College, for giving me the permission and opportunity to carry out this internship
training successfully.
I express my sincere thanks to Mr.C.KARTHICK, Head of the Department in commerce
for providing me the necessary facilities to undergo this internship training work. I also express
my gratitude to faculty members of Department of commerce.
I own my personal debt to my guide Mr. P. VIMAL KUMAR M.Com. MBA. M.Phil.
Assistant professor, in Department of commerce for her valuable support.
I express my thanks to Mr. Thiyagaraja Sampath [Managing Director], and the staff, in-
charge of Fresh Dairy Product India Limited in P.Puliampatti for providing me an
opportunity to undertake my internship training in their organization.
I thank my beloved parent and friends who have helped me to complete this at all stage of
this internship training successfully.
CONTENTS
 CONTENTS

S.NO TITLES / CHAPTERS PAGE NO

1 INTRODUCTION

2 COMPANY PROFILE

3 SECTIONS OF FRESH DAIRY

4 ORGANISATION CHART

5 DEPARTMENTS

5.1 PURCHASE DEPARTMENT

5.2 PRODUCTION DEPARTMENT

5.3 MARKETING & SELLING

DEPARTMENT
5.4 FINANCE DEPARTMENT

5.5 PACKING DEPARTMENT

5.6 OUALITY CONTROL

DEPARTMENT
6 CONCLUSION
INTRODUCTION
 CHAPTER -I

INTRODUCTION
Industry places a vital role in the economic development. Industry provides a variety of
employment opportunities to various categories of people irrespective of literacy.
The milk industry offer direct employment and can improves financial and economic
strength. This paves way for employment in various sectors of milk industry.
The Indian dairy industry is contributing significantly to the country's economy, besides
improving the health standard by increasing the nutrition value of the food.
The value of output from Dairy Sector increased to Rs.5,00,510 million in 1994-95 from
Rs.2,75,080 million in 1990 and is expected to reach the level of Rs. 8,50,000 million by the
year 2000 A.D.
Recognizing the importance of the sector, the notable programs taken up are key village
schemes, intensive cattle development projects, crossbreeding projects through bilateral
assistance, operation flood program and technology mission by establishing National Dairy
Development Board (NDDB).
This industry started on 2007 located at kottapalayam at Erode district is performing well in
various employment opportunities.
Milk industries are developing rapidly from the year 2000 and contributing significantly to
the economy of our nation.

BUSINESS PROSPECTS

It involves the present demand-supply for various products, gap in supply and expected
demand for various products.

The major competitors and their present share is to be ascertained. The company projections
for the next 3-5 years and the basis for projection may have to be furnished.

The product wise quantities and countries where it is to be exported need to be mentioned.
 OBJECTIVE OF THE COMPANY

 The main objective of this company is to produce a best quality of production

 To Provide the employment opportunities to educate youth
 To uplift the socio-economic conditions of milk producers in India
 To provide consumers with high quality dairy products at a reasonable price
 To set up an innovative processing infrastructure that balances interests of both
consumers and milk producers.

NEED FOR OBJECTIVES

 High rates of rural unemployment

 Current initiatives have been largely unsuccessful
 A large number of milk processing units are fast becoming economically non-viable due
to unfair trade practices and global competition
 Milk producers are not getting remunerative prices
 Consumers are getting substandard milk and milk products

GOAL OF THE MISSION

 To increase average milk purchase price being paid to milk producers at least by one
rupee/Litre.
 To reduce average milk price being charged from consumer at least by rupee one/Litre
 To improve productivity and profitability of dairy business from existing level by rupees
three per litre through unique innovative system of controlling costs and improving revenue.
 Milk Production in India
Milk production in India
Year production in million per capita availability(g)
1999-2000 78.3 214
2000-01 80.6 217
2001-02 84.4 222
2002-03 86.2 224
2003-04 88.1 225
2004-05 92.5 233
2005-06 97.1 241
2006-07 102.6 251
2007-08 107.9 260
2008-09 112.2 266
2009-10 116.4 273
2010-11 121.8 281
2011-12 127.9 291
2012-13 132.4 299
2013-14 137.7 307
2014-15 146.3 322
2015-16 155.5 337
2016-17 165.4 355
2017-18 176.3 375
2018-19* 180*
COMPANY PROFILE
 CHAPTER-II
COMPANY PROFILE
Fresh Dairy Products India Ltd.,
ADDRESS Kottapalayam, P. Puliampatti,
Erode District-638459.
Managing director Mr.Thiyagaraja Sampath

Nature of Organization Public limited company

Year of Registration 2007
Year of Commencement 2008
Scale of Enterprise Large scale industry
Nature of business Manufacturing and marketing
Area of Operation punjai puliampatti
License FCCI-Food safety and drug administration
dept. (2007).
Registor of companies (Roc) Coimbatore.
Registration Under ministry of commerce and company
affairs.
Time taken for Commencing production One year.
The authorized share capital of the society
Share Capital shall be Rs.1.5 crores.

Products Milk, curd, butter milk, panner, ghee.

Trade mark yes, fresh ~~
Raw materials Raw milk, milk powder, packing covers.
Production Throughout the year.
Procurement Directly from farmers.
Product layout Purchase ---.> processing ---> packaging --->
marketing.
Production per day 20,000 – 24,000 liters of milk / day
Volume of sales 22,000 liters / day
Scheduling of work 8 hours / shift
3 shifts/ day.
Customer care No +91 97905 99992
E-mail freshdairy@yahoo.com
SECTIONS OF FRESH DAIRY
 CHAPTER-III
SECTIONS OF FRESD DAIRY
S.NO SECTIONS OF FRESH DAIRY
1 Raw Milk Reception Dock (RMRD) - Consisting of can conveyor, can washer,
weighting balance, dump tank etc.

2 Quality Control Laboratory-
3 Processing Hall -
For testing the quality of milk and milk
product.
Cream separator, chiller, homogenizer,
Pasteurizer and other related machinery are
installed.

4 Products manufacturing area - Depends upon the type of products and the
quantity of milk handled, the required
equipment needs to be installed.

5 Packing area- For packing of liquid milk and other products.

6 Cold storage- For keeping the milk and milk products

before sending to market.

7 Utilities area- For installing boiler, generator set, water

treatment plant, maintenance and store area
for spares.

8 Waste water treatment plant area- For treating the dairy effluents before
releasing to the fields.

9 Quarters and office area- For all the essential staff.

10 Vehicle parking area- Both for the milk procurement and

distribution vehicles.

11 Input supply area- For providing veterinary service, supply of

feed, fodder seeds, etc.
ORGANISATION CHART
 CHAPTER-IV
ORGANISATIONAL CHART

MANAGING
DIRECTOR

GENERAL
MANAGER

PLANT
MANAGER

PROCURING PLANT SHIFT MARKETING

MANAGER INCHARGE MANAGER

LAB MARKETING
SUPERVISORS SUPERVISOR
INCHARGE

PRODUCTION SALES MEN

TRANSPORT INCHARGE
MANAGER

SHIFT LOBOUR DISTRIBUTORS

COMSUMERS
DEPARTMENTS
 CHAPTER-V
DEPARTMENTS

1. PURCHASE DEPARTMENT.
2. PRODUCTION DEPARTMENT.
3. PACKING DEPARTMENT.
4. QUALITY CONTROL DEPARTMENT.
5. FINANCE DEPARTMENT.
6. MARKETING & SELLING DEPARTMENT.
PURCHASE DEPARTMENT
 PURCHASE DEPARTMENT

MILK PROCUREMENT
Milk Procurement is an important function in the Modern Dairying Industry. Milk is
collected from willing dairy farmers by giving due importance to Hygiene and cleanliness.
Weekly milk value is paid to them on basis of quality parameters. The milk collected in
villages is transported to the dairy in clean and safe milk cans through trucks.
The milk received at the dairy is checked for quality and sample taken and weighed and
taken inside the dairy and immediately chilled to 5 O C or below.

ASSESSMENT OF QUALITY MILK

Milk is tested for quality levels at all stages of milk production. This helps to maintain
superior standards in the milk products and it is well appreciated by the consumers and dealers.

We are taking every care to ensure that the products are satisfying to the standards set by
PFA Law.

RAW MATERIALS
Raw material i.e, Raw Milk is procured from farmers. Milk is collected from willing
dairy farmers by giving due importance to Hygiene and cleanliness.
Weekly milk value is paid to them on basis of quality parameters. The milk collected
in villages is transported to the dairy in clean and safe milk cans through trucks.
CANS

Raw Milk procured by milk cans which is having capacity of 40 liters. Cans are supplied
from poysha industries. Highly durable cans are used. Cans are manufactured from, Hosur
(Tamilnadu) - Nilkamal limited. High qualities of cans are used.

PROCUREMENT STRATEGY

Establish direct link between milk producers and dairy plants eliminating all middlemen.
Increase reward for contributing hygienically produced superior quality raw milk.
Use scientific techniques for safe handling of raw milk from producer to processing
plant.
Provide technical inputs to improve productivity and health of Buffaloes and cows.
PRODUCTION DEPARTMENT
 PRODUCTION DEPARTMENT
PROCESSING STRATEGY
 Optimize profitability through consumer oriented most remunerative product mix.
 Deploy innovative management systems for effective cost control and improved revenue
 Use appropriate technology to ensure dairy products meet international quality standards
Optimize use of all kinds of input resources
PASTEURIZATION OF MILK:
 The term pasteurization as applied to market milk today refers to the Process of treating
every particle of milk to at least 63 degrees Centigrade for 30 minutes or 72 degrees Centigrade
for 15 seconds in approved and properly operated equipment. After pasteurization, the milk is
immediately cooled to 5 degrees Centigrade or below.
 Raw milk is pasteurized by pasteurizer of world famous dairy machinery makers
TETRAPAK. In the pasteurization milk is heated to 75 - 80 C and chilled to below 5 c to
destroy all pathogenic bacteria.

NEED FOR PASTEURIZATION

 As it is difficult to exercise strict supervision over all milk supplies, it becomes necessary
to pasteurize milk so as to make it safe for human consumption. Any impairment of nutritive
value is of the slightest importance.
ADVANTAGES
 To render milk safe for human consumption by destruction of cent Percent Pathogenic
micro-organisms.
 To improve the keeping quality of milk by destruction of almost all spoilage organisms.
(85 - 99 %)
DISADVANTAGES
 Pasteurization encourages slackening of efforts for sanitary Milk Production.
 It may be used to mask low quality milk.
 It diminishes significantly the nutritive value of milk.
 It reduces the “cream line” or cream value.
 It fails to destroy bacterial toxins in milk.
METHODS OF PASTURIZATION
 There are a number of methods and among them; two methods are most commonly used
in dairy/dairies. They are: -

BATCH PASTEURIZERS (ALSO KNOWN AS L.T.L.T)

 This is also called the Low Temperature Long Time method. The milk is heated to 63
degrees Centigrade for 30 minutes and promptly cooled to 5 oc or below. This method of
pasteurization is normally practiced in dairies where small volume of milk is handled.
 High Temperature Short Time Pasteurizer (H.T.S.T.)
 In this method of pasteurization, the process involves the heating of milk to 72 degrees
Centigrade for 15 seconds. This process or type of pasteurization is most commonly practiced
in dairies where large volume of Milk is handled.
MILK PASTEURIZERS
Milk pasteurizers has the capacity to hold the liquid form 250 l/h to 10000 l/h. Manufactured
from stainless steel 316, it is used in dairy industry and has the capacity of 2000 l/h up to
10,000 l/h. These are used to produce a wide range of dairy products such as:
Capacity : 3,000 litres / hour
HOMOGENIZATION OF MILK
Homogenization can be defined as “the process designed to reduce the size of fat globules and
making a permanent emulsion of milk fat and serum by the use of machine called as
“homogenizer”. Homogenized milk is milk, which has been treated in such a manner as to
insure Break up of the fat globules to such extent that after 48 hours of quiescent storage no
visible cream separation occurs on the milk.
Capacity : 3,000 litres / hour
ADVANTAGES
 No formation of cream layer.
 Fat in milk does not churn due to rough handling or excessive agitation.
 Becomes more palatable.
 Produces soft curd and is better digestible, hence recommended for infant feeding.

DISADVANTAGES
 Increased cost of production.
 Fat recovery is a problem - cannot churn.
 Greater tendency for milk seepage through bottle caps.
CHILLING OF MILK
IMPORTANCE OF MILK
Chilling of milk means rapid cooling of raw milk to sufficiently low temperature so that the
growth of micro-organisms present in milk is checked. In chilling process the temperature of
milk should be reduced to less than 10 0C preferably 3 - 4 0C. Milk inside the udder is almost
sterile and as soon as it leaves the udder, it is exposed to atmosphere. Due to these changes the
quality of milk is adversely affected so much so that sometimes milk becomes unfit for
consumption as fluid milk. Since most of the milk is produced in the rural areas under
unhygienic conditions and atmospheric temperature remains fairly high throughout the year,
keeping quality of raw milk is very low. If milk has to be transported to longer distances,
considerable time is involved between production and heating process. During this period milk
must be protected from spoilage by the action of microorganisms. Chilling, therefore, is
considered necessary soon after it is received at the chilling canters. The most effective means
of controlling the growth of microorganisms without affecting the nutritive value of milk is to
chill it. Lower temperatures inhibit the growth of most of the microorganisms. It should be
clearly understood that chilling process does neither kills microorganisms nor it renders milk
safe for human consumption.

MILK CHILLERS
Milk Chillers is manufactured keeping in mind the ice bank technology. This helps us in
chilling the milk to 5 degree centigrade. The milk chillers available are available in 500 to
20,000 lph capacities. This equipment is used for improvement of milk quality by chilling it at
collection center, before transporting it to the dairies. These chillers can operate on single-phase
diesel engine thereby bringing down the average chilling cost to nearly 10 Paise per liter of
milk.
Capacity: 5,000 litres / hour

SEPARATION OF MILK
Separation means a process removing milk fat from milk. Fat present in the milk can be
removed in the form of cream and the remaining portion of the milk is called skimmed milk.

STANDARDIZATION OF MILK
Standardization refers to a process by which the composition milk is adjusted to a required
standard
STANDARDIZIED MILK
According to the prevention of Food Adulteration act standardized milk should contain nor less
than 4.5% fat and not less than 8.5% SNF. These are two methods of preparation. They are
 Removal of excess fat
 Addition of skim milk or skim milk powder and water
TONED MILK
The Object of preparing toned milk way to increase the quantity of milk by reducing its fat
content and maintaining the SNF level in the milk.
According to the P.F.A act toned milk shall contain not less than 3% milk fat and 8.5% SNF.

AMMONIA COMPRESSOR

 In dairy industries ammonia compressors are used to cool the high pressure gas.
 Wide range of refrigeration and air conditioning Ammonia compressors are offered by
Neer Enterprises Pvt. Ltd. under the brand name of "KAFCO".
 Ammonia compressors designed with state-of-the-art technology for industrial &
commercial refrigeration and low temperature applications like ice plants, cold storage , dairy
plants.
 Compressors are V belt driven and are suitable to operate with Ammonia (NH3) & Freon
[12 (CCl2F2), 22 (CHClF2)] as refrigerant.

COLD STORAGE ROOM

 “A cold storage room is a refrigerated food storage chamber that prevents perishable food
from spoiling.”
 Temperature maintained inside cold room is 50 c
 The primary purpose of a cold storage room is to refrigerate fresh, pre-cooled and frozen
foods.
 Products that are kept in cold storage include dairy products like milk, curd , butter milk
etc., frozen foods.
 Some dairy products and beverages have to be stored below a certain temperature to
prevent chemical reactions and microbial processes that would be detrimental to their quality.

SILOS
For bulk milk storage the vertical cylindrical dairy milk silos are used. These silos are available
in the capacities ranging from 5,000 to 1, 00,000 liter. The Silo is designed for the external
locations and to meet the needs of larger dairy units. Optionally for the economical models it is
fabricate dinmildsteel.
SALIENT FEATURES:-

 Maximum storage with minimum space

 Air and mechanical agitation
 Hygienic milk sampling system
 Stainless steel access ladder

PLANT AND MACHINARY

 The plant and machinery required for production are available in India . Modern
machineries are used for pasteurizing , homogenizing and packaging. These are necessary
to run a dairy industry. Modern machines are used for efficient and quality production.
 Machinery – 20 Million .
PRODUCTS

TONED MILK
 Toned Milk a perfect blend of good health and wholesome taste. It’s an ideal choice for
people in search of a nutritive balanced diet that does not compromise on taste. It is the right
way to stay fit and fine, jolly and cheerful.

It is a Lighter milk than Standardized Milk comes with all the good processing technologies,
i.e., homogenization, pasteurization and bacteria clarification. This ensures that the high quality
and hygiene standards set for its products are met.
 Pack sizes: 1000ml, 500ml & 250ml,200,100 ml
 It means cow milk or buffalo or combination of both, which has been standardized to a
fat 4.5% and 8.5% SNF by the addition of skim milk /or by addition of recombined or
reconstituted skim milk. It’s fresh and pure. It consist more 50% butter than the Toned
milk, Unlike toned milk where butterfat is removed to make it only 3%, Standardized
Milk has 4.5% butterfat.
 Milk has more nutrition and butterfat. It ensures a milk of practically uniform constant
composition and nutritive value to the consumer

 Pack sizes: 1000ml, 500ml, & 250ml ,200 ml

CURD

 Curd manufactured by using healthy lactic acid bacteria for the formulation of the fresh
curd. Curd is manufactured using pure and fresh farm milk, which also is high on the
nutritive value. curd has a really good taste and has an attractive flavor. Our highly
nutritious curd is popular among the customers for its superior quality and consistency.
 Pack size: 125ml Cup, 200ml ,500 ml
PACKAGING DEPARTMENT
 PACKAGING DEPARTMENT
PACKAGING

The processed milk has been stored in the silos and then it is transferred through pipes to
the packaging machines NICHROME FILPACK CMD AND G 5500 NOBLE PACK
MACHINES. Processed milk is filled in the balance tank and it is send to packing machines.
The machines are run to pack milk and curd

Capacity of packaging machine (milk) per hour: 5000 l/ hr

Average packing per hour 2280 liters / hour (milk).

Average packing per minute 38 liters / min.

Packaging machines are run by mechanical and electrical mechanisms.

The processed milk is packed in packets and processed curd is packed in cups. The plastic
packets are purchased from KM PLASTICS COIMBATORE.

The plastic covers are made in the thickness of 65 microns. For standard milk and toned
milk there are two different color packaging materials are used viz., green and pink milk is
packed in 200, 250, 500, 1000 ml packets. The cups used for curd packing are 200 g capacity.
And also packed in 200, 250, 500 ml packets.

PACKAGING MATERIAL of 1 kg role of plastic is used to make 240 packets (500 ml),
120 packets (1 liter).

PACKING DETAILS

The packed milk packets have some details about the product. They are

 Amount of fat
 Lactose
 Milk protein
 Calcium
 Energy
 Manufactured place
 Date of manufacturing
 Date of expiry
QUALITY CONTROL DEPARTMENT
 QUALITY CONTROL DEPARTMENT
MILK DEFINITION
Milk is the secretion obtained from complete milking of healthy MiIch animals. It shall be free
from colostrums. It shall confirm to the standard prescribed under the prevention of Food
Adulteration Act.
CONSTITUENTS OF MILK
Major constituents:
 Milk fat
 Proteins
 Lactose
 Minerals
 Water
Minor constituents:
Pigments: e.g., carotene which is mainly responsible for the yellow color of cow milk.
 Cholesterol
 Phospholipids
 Enzymes
Milk is a secretion obtained from mammals. It is free from cholesterol and it having Fat,
Protein , lactose , water other essential substances. The quality of milk can be assessed by three
types based on their fat content, i.e.,
(i). Toned milk- 3.0% fat SNF 8.5%
(ii). Standard milk- 4.5 % fat SNF 8.5%
(iii). Full cream milk-6.0% fat SNF 9.0%
COMPOSITION OF MILK
All milk contains the same kind of constituents but in varying amounts. The composition of the
milk of different species may Varied.
AVERAGE COMPOSITION OF MILK (%)
Fat Protein Lactose Ash Water
Cow 4.9 3.2 4.6 0.75 87.20
Buffalo 7.2 3.8 4.8 0.78 84.15
Human milk contains lactose as much as 6.8%
COLOUR OF MILK
Milk contains several pigments which impart color. Cow milk is always yellow in color due to
the presence of carotene. Buffalo milk white due to absence of carotene. Buffalos have a
tendency to convert all carotene into vitamin A which is a colorless substance whereas cows do
not possess this ability.
NUTRITIVE VALUE OF MILK
Milk is considered to be almost perfect food for the mankind. It is a valuable food for young as
well as old alike. Water serves as the carrier of food and waste to and from the cells of body.
Milk is a good source of all the amino acids which is available in milk proteins , milk is a good
source of vitamins and also calcium.
MICROORGANISMS IN MILK
Milk contains all the nutrients required for the growth of microorganisms and serves as a good
medium for their growth. The microorganisms which are most important in dairy are the
bacteria, yeasts and moulds. They produce several biochemical changes which are classified as
pathogenic and non-pathogenic.
Milk as it exists in the udder of healthy animal is considered to be free from microorganisms.
As it leaves the udder various microorganisms gain entry into the milk. They grow and
multiply.
ARRES OR CHECK THE GROWTH OF MICROORGANISMS
Since most of the milk is produced in the rural areas under unhygienic conditions clean milk
production is important to improve the keeping quality of milk.
Since milk has to be exposed for a longer time between production and heating process chilling
of milk is considered necessary. Chilling of milk to sufficiently low temperature (4oc or below)
the growth of microorganisms are checked. Chilling process does neither kill microorganisms
nor it vendors milk safe for human consumption it is only a means of checking the growth of
microbes. Hence every effort should be made to destroy the microbes.
CLEANING AND STANDARDIZATION
Cleaning and standardization in any food industry occupy an important position. Maximum
attention should be paid for cleaning and standardization in dairy equipments and machinery
with which milk and milk products come in contact, any negligence on these operations may
result into heavy losses which sometimes may become very serious in nature. It will not only
affect the quality of milk but also may cause health hazards to the consumers.
Having efficient cleaning and sanitization in the plant.
ALKALI DETERGENTS
Caustic soda, soda ash (sodium carbonate).
ACID DETERGENTS
Nitric Acid, sulphuric acid.
SANITIZATION
Sanitization in dairy industry means sterilization. The process of dairy equipments is
incomplete without sanitization or sterilization. There are two methods
 By application of heat by steam
 By use of chemicals particularly chlorine.

DISPOSAL

PURPOSE

 To narrate the procedure on the waste management method of the organization.

SCOPE

 Covers the waste generation and disposal for managing the effluents.

RESPONSIBITITY

 Production manager

PROCEDURE

The waste generated during dairy processing is identified as Liquid waste

LIQUID WASTE

Waste water from milk can washing and cleaning the floors and waste milk in the industry are
generated . The waste water from

EFFLUENT TREATMENT PLANT IN FRESH DAIRY

The very nature of the different operations involved in dairy, irrespective of the products size,
generate waste. The relatively high concentration of organic matter in the dairy effluent makes
it peculiar in its class and this results in a higher biological oxygen demand (BOD).
This kind of effluent should not be allowed to mix up with the municipal waste as it will result
in a shock load.

Great care has to be exercised while discharging the dairy waste water into the general pool as
they impose relatively high oxygen demand. Lactose is converted into lactic acid resulting in
decrease in its concentration, when dissolved oxygen is insufficient for oxidation. With
increasing social awareness about the environment, the dairy industry is forced to treat its
effluents effectively and efficiently before disposal into the public drainage.

FEATURES

 Reduced (Maximum reduced) sludge generation.

 Anaerobic systems are used to reduce power consumption.
 Ultra filtration in final state to reduce FP (fouling potential) of effluent.
 Due to good quality raw material used it results in enhanced recovery.
FINANCE DEPARTMENT
 FINANCE DEPARTMENT
FINANCIAL HIGHLIGHTS
 Estimated total cost of project may vary between Rs. 10 to 15 crores depending upon
capacity of milk handling and product mix combination (15 to 16 thousand litres per day).
 Ownership to remain initially with the financing and sponsoring agency.
 Ultimately self help groups of dairy farmers, consumers and ethical entrepreneurs to
become owners.
 For arriving at the tax liabilities, profit before tax was estimated and income tax was
considered @35% as per the existing rates.
 Financial ratios are studies to develop most efficient method of farm financial operations.
Rations will explain the strength and weakness.
𝒕𝒐𝒕𝒂𝒍 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒔𝒔𝒆𝒕𝒔
 Current Ratio (CR) =
𝒕𝒐𝒕𝒂𝒍 𝒄𝒖𝒓𝒓𝒆𝒏𝒕 𝒍𝒊𝒂𝒃𝒍𝒊𝒕𝒊𝒔

Reflects the ability of the firm to cover current debts by Liquidization of current assets.

 A value that is greater than one indicates that the business will be able to over current
debt through the liquidization of the current assets.
 A firm with current ratio less than one would need to liquidate all of its current assets
plus some of its intermediate or log term assets, for covering the debts.
 The net capital ratio, debt-equity ratio and equity-value ratio are indicators of long term
solvency of the business. These ratios indicate a manager’s willingness to use borrowed capital
in the operation of his business.
 NCR should be increasing over time
 Debt equity ratio should be decreasing over time

INCOME STATEMENT

Ratio calculated from the income statement give an indication of the relative profitability the
farm has in meeting the expenses.

The operating ratio indicates the proportion of the gross income to operating expenses.
total operating expenses
Operating Ratio = Gross farm income

Fixed ratio indicates the proportion of gross income allocated to meeting the fixed expenses.
total fixed expenses
Fixed Ratio = gross farm income
The Relationship between the fixed ratio and operating ratio is important. Farm with relatively
large fixed ratio and small operating ratio generally are more vulnerable to cash flow problems.
total expenses
Gross Ratio =
gross farm income

Gross ratio (GR) indicates the proportion of gross income needed to meet the total expenses and
is the sum, of fixed and operating ratios. In examining the three ratios the gross ratio is the
important among the three.

If GR>1 the business is not covering the total expenses of operation

GR<1 the farm is generating a positive net farm income

The primary ratio calculated using the balance sheet/ net worth statement and the income
statement is the Capital Turn- over Ratio. This ratio compares the use of invested capital in
business in relationship to the income generated. Higher the ratio, the more efficient is the
business.
gross farm income+major purchase
Capital turn over ratio=
Average capital investment

FIXED COST REQUIREMENTS

LAND
The entrepreneur should have acquired suitable land with all infra-structure facilities for setting
up the dairy plant. It should also be ensured that the land acquired is nearer to the area milk
production is more so that the availability of milk in adequate quantities is ensured.

LAYOUTS AND BUILDINGS

The civil works comprises of factory building, quarters, office, garages, security post etc. The
factory building for the milk reception, quality control, processing, packing and storage of milk
products should be as per the BIS. The total covered area depends on the processes involved,
products manufactured, the quantity of milk handled and the equipment chosen for services and
product manufacturing. About 4000 sq .ft. Area of building is required for handling 15000 liters
of milk.

Land and Buildings– 12 Million.

WAGES AND SALARIES
Technically qualified supervisors are to be appointed for the success of the industry. Skilled
labours are employed to work efficiently.
Wages – permanent labour =Rs.15000 / month
Casual: Rs. 500 / day.
UTILITIES
Electricity should be available for running the units. However generators are necessary for shut
down days and also to ensure uninterrupted power supply. Fresh dairy has two generators.
Abundant water supply is also required for milk Treatments, washing of cans, washing of
floors, and other treatments in the manufacturing process.
Electricity - 1.5 lakh / month.
Communication - Rs.1000 / month.

MANPOWER

While selecting the site, the availability of manpower should be looked into and the total
requirement of manpower depends on the operations involved and the quantity of milk handled.
For a plant handling 24,000 liters of milk per day the manpower required. Skilled labours are
used.

FINANCIAL MANAGEMENT

SOURCE PRINCIPAL INTEREST REPAYMENT POURPOSES

AMOUNT PERIOD
A). 20000000 14% 5 YEARS Machinery, building,
BORROWING (BANK) working expenditure.
FORMAL
B).VENTURE 15000000 ___ ___ getting profits from
CAPITAL (SHARE their shares.
CAPITAL)
INVESTMENT EXPENDITURE – SETUP COSTS

Particulars Amount in million

Purchase of land 2
Construction of building 10
Purchase of Machinery(chillers ,pasteurizers, 20
homogenizers , packaging machines)
Furniture, fixtures, and equipment 3
Installation and layout costs of fixtures 1
Decorating and remodeling --
Deposits(utilities- electricity and telephone) 2
Accounting the legal fees 0.07
Advance rent --
Annual insurance premium 0.04
Total = 38110000
No commercial taxes (Sales, vat) for milk products.

WORKING EXPENDITURE: Average monthly cash operating expenses.

PARTICULARS AMOUNT
Employee’s wages and salaries 0.8
Employee benefits 0.050
Owner’s salary 0.1
Utilities and telephone 0.12
Accounting and legal fees 0.15
Repairs and Maintenance 0.30
Advertising ----
Miscellaneous expenses 0.5
Raw materials 0.8
Storage 0.8
Packaging 1.5
Transport 1.5
Electricity 0.25
EXPENDITURE SCHEDULE (in Rs)
PARTICULARS 2014-15 2015-16 2016-17 2017-18 2018-19
PRODUCTION COST
Capital investment 10000000 9865000 9658000 9500000 9100000

Fixed cost 15300000 16890000 17200000 18956000 19570000

Variable cost 6700000 7800000 8500000 9100000 10000000
Total 32000000 34555000 35358000 37556000 38670000
MARKETING COST
Capital investment 10000000 9865000 9658000 9500000 9100000

Fixed cost 8700000 9100000 9650000 9990000 10200000

Variable cost 11700000 12500000 13600000 14900000 15780000
Total 30400000 31465000 32908000 34390000 35080000

CASH FLOW STATEMENT (IN RS)

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

I).gross income 22700000 25985000 28975100 30050000 31500000

ii)costs 10000000 9865000 9658000 9500000 9100000

a).investment
B).fixed costs 15300000 16890000 17200000 18956000 19570000
c).working cost 6700000 7800000 8500000 9100000 10000000

iii).net income 709000 756000 783540 825400 859645

MARKETING & SELLING DEPARTMENT
 MARKETING & SELLING DEPARTMENT
The market for the product (domestic), type of arrangements for distribution and sales,
commission and additional incentive to be given, the proposed net work and the advertisement
plans should be furnished. Detailed market survey report is required to be submitted.

MILK MARKETING AND SUPPLY

Processed and hygienically Packed Milk is transported in insulated trucks to various locations
in the city and urban locations.

The milk is distributed by hardworking and people friendly distributors to the general public.
This has helped us to develop good public relations.

We have developed good distribution network in Coimbatore dist, Erode Dist, Tiruppur Dist,
Nilgris dist , Pollachi etc.,
PRODUCTION COST/PER LITER OF MILK
Milk procurement price 27.
Raw milk powder 1
Processing 1
Packaging 0.5
Storage 1
MARKETING COST/PER LITER OF MILK
Milk procurement (Transport) - 0.5 Rs / l
Sales - 1.5 Rs / l
Gifts to the dealers - 1 Rs / l
Marketing - 0.25 Rs / l
Cost of production
= 42 Rs. / per liter
(per liter of milk)

DISTRIBUTION STRATEGY
Create innovative marketing infrastructure for distribution of milk and dairy products.
Maintain low inventory levels with accurate demand forecasting and proper planning.
Committed customer base to reduce all kinds of advertising and marketing costs.
PRODUCTS

The major products and by products proposed to be manufactured along with quantities,
composition in terms of fat and SNF and costing.

In this industry there are six products viz., they are

MILK

PANEER CURD

FRESH
DAIRY
PRODUCT
S

BUTTER
GHEE
MILK

BUTTER
CONCLUSION
 CHAPTER - VI
CONCLUSION

Procedures and process that takes in the company has been understood during this period of
internship. The industrial training undergone in FRESH DAIRY PRODUCTS INDIA
LIMITED has given the practical knowledge about the functioning of the various departments
viz., purchasing, production, sampling, marketing, selling, finance, etc.. The shows the different
between the study atmosphere and the job place which is totally different and it help an
acronym for beginners to enter a new society.