Professional Documents
Culture Documents
AT
AAVIN, COIMBATORE.
Submitted by
VIDHYA L
(20COMD26)
Dr. M. NIRMALA
Assistant Professor
DEPARTMENT OF COMMERCE
BHARATHIAR UNIVERSITY
COIMBATORE-641046
MARCH 2022
DECLARATION
I hereby declare that the summer institutional training work done at “AAVIN” submitted to
for the award of the degree of M.Com (Finance & Accounting) is a record of original
summer institutional project work done by me under the supervision and guidance of Dr. M.
not previously formed the basis of the award of any Degree / Diploma / Associateship /
Countersigned By
First of all, I show my hearty thanks to the almighty for making this institutional
Department of Commerce, Bharathiar University, for updating the required information and
had helped us by providing all the necessities with appropriate assistance at the right time as
Professor for her valuable guidance, personal care and encouragement, for completing this
internship successfully.
Assistant Professor and the guest faculties Dr. N. Vijaya Lakshmi, Dr. M. Siva Prakasam,
I also thank ------------, Ph D Research Scholar for her ostensible support throughout
B.Vinod and Ms. Manimala for their timely help to complete my project successfully.
Producers Union Ltd, for providing me this opportunity to enhance and enrich my
Last but not least, I express my sincere gratitude to my parents and friends for their
TABLE OF CONTENTS
S. No. CONTENTS Pg. No.
1 INTRODUCTION 1
3 ORGANISATIONAL CHART 7
4 VARIOUS DEPARTMENTS
PURCHASE 8
STORES 9
FINANACE / ACCOUNTS 16
ADMINISTRATION 19
QUALITY CONTROL 21
5 LEARNINGS 22
6 CONCLUSION 22
CHAPTER-I
INTRODUCTION
Milk has been an integral part of Indian food for centuries. It is estimated that around
20% of the total milk produced in the country is consumed at producer-household level and
remaining is marketed through various cooperatives, private dairies and vendors. Also of the
total produce more than 50% is procured by cooperatives and other private dairies. While for
cooperatives of the total milk procured 60% is consumed in fluid form and rest is used for
manufacturing processed value added dairy products; for private dairies only 45% is marketed
in fluid form and rest is processed intovalue added dairy products like butter, ghee etc.,
OBJECTIVES OF TRAINING
The main aim of the training is to acquire practical knowledge. The procedures which
are followed in the company can be known. . It helps in exposing ourselves to a new working
environment.
AREA OF TRAINING
Training was undergone in the following departments.
Production department
Finance / Accounts department
Administration department
Purchase department
Marketing department
PERIOD OF TRAINING
The training was undergone for a period of 25 days.
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CHAPTER-II
COMPANY PROFILE
Aavin is the third largest purchaser of milk among Dairy Co-operatives in India in
terms of volume of milk by procuring 41 lakh litres per day. Tamil Nadu is the tenth largest
producer of milk among the high milk producing States, with a milk production of 233
LLPD. Various value-added milk products are being produced from the milk purchased by
Co-operative Societies and are sold under the brand name "Aavin".
‘Aa’ or 'ஆ' in Tamil means 'ஆஆஆ (cow)' and 'ஆஆஆஆ' means 'milk'. So 'Pasuvin paal'
('ஆஆஆஆஆஆஆ ஆஆஆஆ') is termed as AAVIN MILK ('ஆஆஆஆஆ ஆஆஆஆ').
Name Aavin
Year of incorporation 1979
Owner Tamil Nadu Cooperative Milk Producers
Federation Limited, Ministry of
Cooperation, Government of Tamil Nadu
Headquarters Chennai, Tamil Nadu
Industry Food Processing (FMCG)
Products Milk, curd, butter, ghee, butter milk, khoa,
peda, flavoured drinks.
Website aavin.tn.gov.in
Logo
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HISTORY
The Dairy Development Department was established in Tamil Nadu in the year 1958 to
oversee and regulate milk production and commercial distribution in the state. The Dairy
Development Department took over control of the milk cooperatives. It was replaced by the
Tamil Nadu Cooperative Milk Producers Federation Limited in the year 1981.
On February 1, 1981, the commercial activities of the cooperative were handed over to
Tamil Nadu Co-operative Milk Producers' Federation Limited which sold milk and milk
products under the trademark "Aavin". Tamil Nadu isone of the leading states in India in milk
production with about 14.5 million litres per day.
ESTABLISHMENT
Coimbatore Dairy has been Established and successfully functioning since 1979.
Coimbatore DCMPU has functioned with the Amalgamation of both Coimbatore District and
Part of Tiruppur District till 17.12.2018, and after the Creation of Tiruppur DCMPU on
17.12.2018, the Coimbatore DCMPU has been Procuring of Milk from 9736 Milk Producers
in 350 Milk Producers Co-operative Societies.
CAPACITY
Coimbatore DCMPU having 5 Lakhs Litre Milk Handling Capacity at Main Dairy
Campus at Pachapalayam.
PROCUREMENT
Milk procurement team - 5
Milk collection route - 41
Milk supply route - 21
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BMC (Bulk Milk Cooler)
This has the capacity of 5000 to 10000 ltrs. There are around 17 BMC’s.
Ayyampalayam
Kumarampalayam
Illumpanatham
Papankulam
Vedapatti
Manupatti
Ramampalayam
Kalampalayam
Vallakundapuram
Kallipalayam
Kovilpalayam
Vadapudur
Varathayampalayam
Naduvelampalayam
Okkilipalayam
Sengathurai
Naduvelampalayam
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STRAEGIES
The following strategies are being adopted to achieve the objectives of the Dairy
Development Department
1. Bringing more number of milk producers under the co-operative fold, by forming
more milk producers’ co-operative societies covering all villages and reviving
dormant societies into functional societies.
2. Establishment of Integrated Dairy Management System in all Dairy Co- operatives.
3. Implementation of Clean Milk Production in all Dairy Co-operatives.
4. Provision of Automatic Milk Collection Stations, to establish Bulk Milk Coolers at
more number of societies with varying capacity thereby ensuring the initial quality of
milk through proper maintenance of milk temperature at all levels.
The dairy co-operatives in Tamil Nadu functions under 3 tier system which is popularly
known as ‘Anand pattern’. The details are:
Tier 1- At Village level- Primary dairy Co-operatives are formed at the village level which
forms the base level of the 3 tier system. These dairy Co-operative societies have
direct contact with milk producer members in the villages. They procure milk from
the member milk producers and after selling a small quantity of milk locally for local
needs, supply the milk to the District Co-operative Milk Producers' Unions.
Tier2- At District level- District Co-operative Milk Producers' Unions (DCMPU) are the
middle-level Co-operative societies at the district level wherein the primary dairy Co-
operatives in their jurisdiction are members. They procure surplus milk from the
societies, process it and sell it to milk consumers. They also produce milk by-products
and convert the excess milk into skimmed milk powder.
Tier 3- At State level - Tamil Nadu Co-operative Milk Producers' Federation (TCMPF) is
the apex level society in which all the District Unions in the State are members.
Federation is purchasing milk from the member District Co-operative Milk Producers'
Unions and after processing the same supply the same to the milk consumers in the
metro. It is arranging for the marketing of own liquid milk and products produced by
all DCMPUs in the brand name of “Aavin”. Like all other Co-operatives, the entire 3
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tier Dairy Co-operatives are governed by Tamil Nadu Co-operative Act 1983 and
Tamil Nadu Co-operative Rules 1988.
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CHAPTER-III
ORGNISATIONAL CHART
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CHAPTER-IV
Milk
Curd
Butter
Ghee
Peda
Khova
Butter milk
Flavoured milk
VARIOUS DEPARTMENTS
Purchase department
Stores department
Diary processing and Production department
Quality control department
Administration department
Finance/Accounts department
Marketing and Distribution department
PURCHASE DEPARTMENT
Purchasing department is the primary department. A purchasing manager is duly
appointed to manage the purchases and also to communicate with other departments.The
materials are purchased on quotation basis and by way of tender. Purchase is made either on
quotation basis or tender basis. If the value of materials to be purchased is less than 5 lakhs
(quotation basis) and if above 5 lakhs (tender basis).
Purchase section deals with the purchase of main items, engineering items, stationery items
such as polyethylene film, milk powder files, paper, pins, pens, writing pads, etc. and
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machinery spare parts, tools and equipments. The function of the purchase department begins
when there is a demand from any department like need for spare parts or stationery items, etc.
STORES DEPARTMENT
Stores is used for storing raw materials, to meet the contingencies in future period.
First the order is received from the purchase department. Once the PO is received they place
the order and receive the materials. PO is verified with the bill and then the materials like pet
jars and bottles used are sent to the quality control department to test its quality. Only if good
quality certificate is issued it will be used for packing. If not it will be returned to concerned
parties. The purchased raw materials are stored in godown until they are used for production.
Main items
Engineering items
Stationery items
Main items
It includes polyethylene film, milk powder, butter sheer, pet jars, bottles, chemicals, lab
equipments, etc. These types of goods are used frequently.
Engineering items
It includes tools and equipments which are used for running machines. There are different
kinds of spare parts. Lubricant oil, diesel, tyre etc., are also stored here.
Stationery items
It includes pen, paper, writing pads, accounts notes, files and so on which will be needed for
office work.
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DIARY PROCESSING & PRODUCTION
Production is an important function in every organization. Milk is the main product of
Aavin and other by-products is also produced by Aavin. The production processes functions
as three shifts for a day as follows.
MILK PROCESSING
MILK RECEPTION
FILTER
CHILLING
SEPARATION STANDARDIZATION
PASTEURISATION
PACKING
REFRIGERATION
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PRODUCTION PROCESS OF MILK
FAT SNF
Standardized Milk 4.5g 8.5g
Full Cream Milk 6g 9g
Toned Milk 3g 8.5g
Milk reception
The manufacturing process starts from milk reception. The milk from the nearby
societies are collected in this reception. The milk from the society is loaded in cans of 40
litres each. Around 111 societies milk are supplied here. Quantity of milk supplied differs
from society to society and also from time to time.
SCADA
Supervisory Control And Data Acquisition (SCADA) Tankers from BMC’s, CC’s
(Chilling Centers) are collected in SCADA. Production section is completely monitored by
software called SCADA (supervisory control and data acquisition). Milk processing is
completely taken over by SCADA operation. The milk from BMC’s and CC’s is weighed in
weighing bridge in kilograms and then converted into litres.
Filter
Next step is filteration. Society milk is filtered in a large vessel. This step is not
needed in case of BMC and CC’s milk. Because the milk is loaded after this process only.
And then sample is taken to test its quality ie., FAT and SNF
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Testing
Testing of milk is made in the lab using highly equipped machines. If FAT is below
3g then it is considered to be quality. SNF must range between 7g to 10g.
Chilling
The first step in processing of milk is chilling. Chilling is done to increase the life of
milk and to check the growth of micro organisms present in the milk. It is to be chilled in 4˚C.
The milk is stored in silos (a large container).
Certain quantity of raw milk is used for separation. Separation is done to separate
milk into cream and skim milk. This process is known as separation. Cream consists of fat.
Once the cream is separated the remaining portion is known as skim milk. It contains very
little fat. This is used to make milk powder.
b) Standardization
Homogenization
This process is done to distribute the fat globules evenly throughout the milk. It means
that fat globules in the milk are subdivided into small particles of uniform size. When milk is
properly homogenized, the cream will not rise to the top. Now all nutrients in the milk is
properly mixed.
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Pasteurization
Pasteurization is done followed by homogenization. This is the process of heating and
cooling. The milk is first heated in 72˚C for 15 seconds followed by cooling in 100˚C. This is
done in order to
To increase the shelf life
To kill all pathogens
To kill spoilage organisms
After this process, the milk is stored in PMST(Pasteurized Milk Storage Tank) for packing.
Packing
This is the final stage in milk production. The milk is taken from storage silos through
pipes and it is sent to the packing machine and the milk is packed in poly ethylene packets.
There are 9 milk packing machines. This machine prints the date of manufacturing, expiry
date. After packing it is arranged in tray and then loaded in vans for supply.
Refrigeration
Refrigeration is a basic requirement for the processing and storage of milk and milk products
as majority of dairy products are perishable in nature. The need of refrigeration is indicated
below.
1. Chilling of milk at producers’ level by employing bulk milk coolers and at milk
chilling centres is the first requirement in dairy industry. Immediate cooling of milk to
about 2-3 ºC is very important to reduce the multiplications of micro-organisms and
to get low bacterial count in the milk and milk products.
2. Manufacture of many products requires refrigeration. e.g. butter, ice-cream etc.
3. Storage of milk and milk products requires maintaining low temperature in the cold
storages depending on the type of product to be stored. e.g. milk is stored at around 3-
4 ºC while ice-cream is stored at -30 ºC temperature.
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BY PRODUCTS OF MILK
Curd
First the milk is heated in 90˚C. Then culture is added to the milk. Culture is a powder
which is added to convert milk into curd. This must be properly dissolved. 2 packets of
culture is added to 1000ltrs of milk. It is kept in normal room temperature for 4 hours and
then in cold storage for 1 day. On an average 5000ltrs of curd is produced.
Butter is made from cream milk which is separated from skim milk. This cream is
pumped to boiler. Then cream is then cooled to 5°C and stored in a tank. The tank consists of
kneader and it rotates at a speed of 130 RPM. And then the butter comes out of the kneader.
This butter is poured in ghee boiler (115-120˚C). And finally ghee is collected in silver
cans and sent for packing in plastic bottles.
Butter milk
Pasteurized water (90˚C) and curd is taken in 1: 2 ratio. Ginger, green chilli, coriander,
curry leave, salt is grinded well and the juice is extracted from them. This extract is mixed
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well with curd and water. 2000 bottles is produced during summer and 1000 bottles during
normal time.
Khova
Khoa is used as the base for a wide variety of sweets. Khoa is made from
standardized milk. Khoa is made by simmering full-fat milk in a large, shallow iron pan for
several hours over a medium fire. The gradual evaporation of its water content leaves only the
milk solids. It is heated until it becomes thick.
Peda
This is made by adding 80ltrs of milk, 5kg of sugar, 15kg of khova. All these are
stirred for 1.50minutes in 30˚C to 50˚C.
Flavoured Milk
They produce 6 types of milk drink. Strawberry, badham, pista, pineapple, cardamom
and chocolate. 120ltrs of milk, 10kg of sugar, 30ml of flavour and 11/2 teaspoon of essence.
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Flavours
Strawberry, pista, pineapple, chocolate – Flavour is bought outside.
Badham – Badham, sugar, conflour is mixed and grinded.
Cardamom – Cardamom, sugar is mixed and grinded.
Essence
This is used to give colours. This is also bought outside.
OTHER PRODUCTS
The following products are produced at other aavin diaries throughout Tamil Nadu
Gulab jamun
Mysorepa
Rasagulla
Lassi
Chocolate
Icecream
Paneer
FINANCE DEPARTMENT
Finance plays a vital role in any business. “FINANCE is concerned with a decision
about money or more appropriately cash flows.” That part of an organization that manages
its money is called Finance Department. This department have co- ordination with all the
departments and it is a centralised department. All the department of aavin is interconnected
to the finance department for the payments, fund allocations.
The business functions of a finance department typically include planning, organizing,
auditing, accounting for and controlling its company’s finances. The finance department
usually produces the company’s financial statements.
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The key functions includes
Based on the reports provided by the this department the company performances can
be known. It helps in comparing previous year performances with current year performances.
With the help of this comparison the company’s growth can be known. Hence, Finance
Department plays an immense role in company’s growth.
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DISTRIBUTION
SOCIETY
BOOTH
INSTITUTIONS
WHOLESALE
RETAIL
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ADMINISTRATION DEPARTMENT
This section involves the process of maintaining and controlling of the organisation. It
is a supervisory department of aavin. Approximately there are around 310 employees
involved in aavin where 260 employees are working in production unit and remaining are
office staffs. The disciplinary action is taken by this department. The various functions
includes recruitment, training, development, promotion, demotion, and performance
appraisal.
Funtions:
Recruitment
Direct recruitment
TNPSC
Leave
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The employee can also save their leave without availing it and can be claimed as salary
and this is known as earned leave. Employees can avail leave only after proper intimation to
the General manager. If not disciplinary action will be taken by the senior executive . If the
employee avails leave frequently he will be given memo for explaining his reasons.
Salary
Salary is different for every worker. Salary is based on seniority and also based on the
performance of the employees. If over time duty is performed he will be provided with
double wages.
Increment
Bonus
Retirement
Aavin follows many acts for the welfare of the employees according to the
factories act 1945.
Workers compensation
The workers compensation is given to the workers for any accident as per workers
compensation act 1923.
Medical allowance
In case medical leave exceeds 90 days (service of 5 yrs and above) then medical
board will take the matter and medical allowance will be provide accordingly.
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Canteen
Meals, tiffin and tea are supplied to the employees at the reasonable rate by the union
canteen.
Shelters
Shelters are provided separately for male and female. They can utilize this space for
taking rest.
Uniform
Employees who are directly engaged with the production, is provided with blue
coloured uniform.
FOOD QUALITY
This department aims at testing the quality of input milk and its parameters. The Milk
is tested for the following quality parameters
Temperature
Acidity
Alcohol Test
Adulterants Test
Fat (%)
SNF (%)
They are utilising the high precise equipments for the analysis of Milk & Milk Products. The
following are the important of those.
Milk-O-Scan (Fat, SNF, Protein, Lactose)
Milk-O-Screen (Fat, SNF, Protein & Adulterants)
IR Moisture Analyser (Moisture (%)
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CHAPTER-V
LEARNINGS
CONCLUSION
As a part of Post Graduate in Finance and Accounting, I have done 25 days of In-
plant training in Aavin. Knowledge and skills acquired during the internship will be of
beneficial for my career. The training helped me to reach people who were expertise in
concern field. As an intern the experiences gathered enriched my prior practical knowledge.
As a part of my intern 25 days were seriously invested in learning entirely new skills and
information.
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