CHAPTER I

INTRODUCTION

1.1 COMPANY PROFILE

Pon - Pondicherry

Lait – milk

The Pondicherry co-operative milk producer’s union had its origin as the Pondicherry co-
operative milk supply society during the year 1955. The supply society had 50 individuals’
members on its rolls. The union was the first co-operative society was registered in
Pondicherry. It still maintains its prominence amongst the co-operative societies in
Pondicherry and it is the Apex co-operative society.

The supply society was unable to extend any good deal of input activities to the
producing members to encourage the milk production and was unable to impress upon the
consumers also on the quality aspects.

The society thought of instantaneous milk cooler with a capacity of 2500 liters to preserve
the surplus milk. The supply society extended cash advance and feed supply on loan basis to
members from going into the fold of private milk traders.

The co-operative dairy established through the National Dairy Development Board, was
commissioned on 12th April 1971 at a cost of Rs.23.60 lakhs with financial assistance from
the Government of Pondicherry.

Milk supply society had its prime objectives as serve to the urban consumer with good
quality milk. Recommendations contained in the master plan for dairy development, the
Pondicherry co-operative milk producer’s union with 46 primary societies affiliated to it and
the management of the dairy. The union started functioning with effect from 01.07.1973 and
primaries with effect from 1.08.1973.

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 The guidelines of the National Dairy Development Board, the Government of Pondicherry
requested the Indian Dairy Co-operation of finance the dairy development project in the
union territory of Pondicherry under operation flood 2nd. October 1979 the National Dairy
Development Board prepared a development plans and titles. Indian Dairy Corporation
officials visited Pondicherry between 28th and 31st January 1980, appraised the project and
prepared an outlay of Rs.102.49 lakhs. Thus Pondicherry brought in the operation flood map
by the launching of operation flood 2nd in 1982 by the Pondicherry Co-operative Milk
Producer’s Union.

The milk of the individual producer members was tested for its quality at the village
society itself and the payment basis of quality of the milk procured by the producers. The
expansion of the dairy plant to 30,000 liters capacity from the original 10,000 liters capacity
under operation flood on turnkey basis by the National Dairy Development Board. The
extension work was undertaken and completed during 1986.

To provide better nutrition to the cattle population of Pondicherry an urea molasses lick
plant of 10mt per day was approved as estimated cost of Rs.26.23 lakhs under operation flood
ш. The work was taken up in October, 1988 and completed in April, 1990 with revised cost
of Rs.18.15 lakhs. It capacity if the dairy plant was expanded to 50,000 liter per day during
1995-96 with the support of the National Dairy Development Board.

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1.1.1 ORIGIN AND GROWTH

 History tells us that PONLAIT came to existence as puducherry milk supply society
registered as 1st co-operative society in the Union Territory of puducherry on
07.02.1955. Started in a tiny shed its primary objective and focus was to supply milk
to the urban consumers.

 As time passed the supply has diversified its activity from consumer to producers and
concentrated in increasing the milk production by giving various assistance/incentives
to the milk producing farmers.

 The union started procuring milk from the village producers on quality basis from
1970 onwards. To keep pace with the milk production the milk union has also setup a
diary plant with 10,000 liters capacity for processing on 12.04.1971.

 During the year 1973 the supply society was converted to co-operative milk producers
union with the objective of shifting its focus on the milk producing community and its
welfare.

 With the success of the amul. The National Dairy Development Board has
programmed to replicate the anand pattern collecting.

 Ponlait has entered the MNEMONIC club conceived, implemented promoted and
popularized by the NDDB for the dairy co-operative of the nation with effect from 30-
03-2002.

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1.1.2 OBJECTIVES OF ORGANIZATION

The objective of the union shall be to carry out activities conductive to the economic
development of the milk producer’s by organizing effectively production, processing and
marketing of commodities.

 Purchase, process, manufacture, distribute and market commodities of the

members and others without affecting the interest of the members.

 Own or hold on lease of otherwise, movable or immovable properties and

dispose of the same.

 Purchase and erect buildings, plants and machineries and or ancillary

equipments.

 Organizing new milk producer’s co-operative societies.

 Organized supervision of affiliated societies for the purpose fix. And collect
the supervision charges with the permission of the registration.

 Undertake and encourage production of milk and growing the fodder and
agricultural products.

 Own herd of cattle for breading purposes.

 Undertake or to assist in the marketing of the cattle.

 Render technical, administrative or other necessary assistance to other milk

scheme.

 Insure immovable properties of the union as may be found necessary.

 Undertake cattle insurance work and general insurance work related to the
union and members of the member societies on agency basis.

 Arrange training of employees of the union and members.

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 TABLE: 1.1 MILESTONES OF THE PONLAIT

SL.NO MILESTONES YEAR

1 Registered as the puducherry co- 1955

operative milk supply society ltd.

2 Foundation stone laid. 1968

3 Dairy plant commissioned. 1971

4 Cattle-feed plant commissioned. 1971

5 Registered as the puducherry co- 1973

operative milk producer’s union
ltd.

6 Artificial in semination in 1984

implemented.

7 Dairy plant expanded 10,000 to 1987-88

30,000 liter capacities.

8 Urea molasses plant implemented. 1991

9 Co-operative development 1992

programmers implemented.

10 Expansion of Dairy plant to 50,000 1996-97

liter capacity.

11 Internet based information system 2001-2001

(IDIS) implemented

12 Mnemonic symbol adopted. 2002

13 Milk supply to school children

under (Rajiv Gandhi Breakfast
scheme).

TABLE: 1.2

WINGS OF THE PONLAIT

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 UNIT LOCATION FUNCTION

Procurement and input Vazhudhavoor road, Milk procurement and

wing kurumampet, puducherry- enhancement service.
600009.

Administration wing Vazhudhavoor road, Determining policies and

kurumampet, puducherry- objectives directing the
600009 function of all other wings.

Dairy wing Vazhudhavoor road, Processing of milk, convert

kurumampet, puducherry- into customer preference.
600009

Marketing wing Mission street, puducherry. Sales promotion activities to

reach the customer.

Cattle feed wing Industrial estate, Production of cattle feed

Thattanchavady, puducherry. and supplied to members on
non-profit motive.

1.1.3 ORGANISATION STRUCTURE OF THE UNION

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  The puducherry co-operative milk producer’s union is a part of two ties structure,
which consists of Dairy Co-operative Milk Producer’s Union Ltd as the apex body at
the state level.

 Members of the society (who are actually pouring milk at the society) elect the
management committee members elect on among them as president of the society.

 The president of the Dairy Co-operative Societies affiliated to the union for the
general body of the Puducherry Co-operative Milk Producer’s Union Ltd and they
elect the members of the board of directors elect one among the elected members as
the chairman.

 The Board of Directors of the PCMPU, in addition to the twelve elected members
there are four members, one nominee each of registered of co-operative societies,
Animal Husbandry Department Government of Puducherry, National Dairy
Development Board and the managing director who is the chief executive of the
union. The staff structure of this union as enclosed as per the development of the
union growth and development of the union.

 A presentation of the date relating to the growth and development of the union is
furnished below for an understanding and appreciation of the aspects and directions of
the growth and development of the union.

1.1.4 MILK PROCUREMENT AND INPUT WING

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 PONLAIT id operating in the puducherry region with 97 affiliated functional Dairy Co-
operative Societies. There are 34,798 cattle owners who are members in the Dairy Co-
operative societies at villages and supplying milk to PONLAIT. Milk supplying members are
paid fortnightly in cash with remunerative milk price and inputs in kind. The primary
responsibility of procurement and input section is to procure clean and quality milk from the
village cattle owners and carryout milk production enhancement services. To achieve this
objective, the procurement and input wing is conducting various programmes like milk
production and Quality milk procurement at Dairy Co-operative societies. Besides the main
activity, the milk supplying members, milk animals are also provided with cattle feed, Green
Fodder and Artificial insemination.

1.1.5 PROCUREMENT AND INPUT WING ACTIVIES

 Guiding formation of new dairy co-operative societies and its functioning.

 Procuring milk from the Dairy Co-operative Society and effecting milk payment once
in a fortnight.

 Conducting milk yield competition and calf rally at societies.

 Arranging for computerization of Dairy Co-operative Societies functions by providing

computers, EMT, Electronic weighting scale and Automatic milk collection units.

 Providing inputs and accessories for clean milk production and procurement.

 Supplying ponlait cattle feed to the members.

 Arranging for artificial insemination at Dairy Co-operative Societies by the

employees of DCS.

 Supplying improved fodder seeds for cultivation by the members.

 Supplying de-warning medicines and mineral mixture.

 Conducting training to the milk producers on milk cattle rearing and co-operative
management.

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  Covering milk producer members under Janashree Bima Rojane Group insurance
Scheme in association with LIC.

 Covering all milk suppliers and employees of the DCS under Janata Personal
Accident Policy in association with LIC.

 Implementing group savings linked insurance scheme for the employees of DCS.

 Arranging for the disbursement of scholarships to the children of milk producers

under JBY sponsored by LIC.

 Awarding cash prices to the top three rankers in S.S.L.C & H.S.C among the children
of producer members.

1.1.6 ADMINISTRATION WING

Administration is generally regarded as a high level activity which is mainly concerned

with laying down broad goals and polices. It is concerned with determination of production,
finance and settlement of the organization and the ultimate control of executive.

The administration has the prime control over the other wings. The ponlait administration
is vested with the committee of management comprising 12 elected representatives from the
presidents of Dairy Co-operative Societies and a nominee from National Dairy Development
Board, Co-operative Department and Department of Animal Husbandry and Managing
Director of the milk union.

Since the committee of management is dissolved, the administrator manned by a deputy

registrar form the co-operative Department is looking after in lien of the Board of
Management with effect from 06.09.2002.

As per the order of the High Court, Chennai, and Board with the following three members
has been constituted by the registrar of Co-operative Societies in order to guide the
Administrator by making major policy decisions and other administrative matters.

 Registrar of co-operative societies – Chairman

 State Director, NDDB, Erode – Member

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  Director, AMD, Puducherry – Member

At present, 161 permanent employees in various cadres are working in the union.

1.1.7 DAIRY WING

1.1.7.1 PROCESSING OF MILKS

The Dairy Co-operative society collects milk from their members. In the societies, the
society workers check the quality of the milk from individual member of the considering the
FAT and SNF (Solid with Not Fat) content of the milk. The milk from each society is
collected and sent to the PONLAIT. PONLAIT receives the milk and perform certain tests to
check the quality for receiving and for further processing the milk.

1.1.7.1.1 STEPS TO PROCESSING OF MILK

 Raw milk weighting by weighting machines.

 Raw milk is put into large containers.

 Raw milk are go chilling process by way of pipe chilling plant used for the purpose of
purity the milk and, milk not get any waste.

Chiller unit are side raw milk and other side-chilled water without mingle each other
carefully.

 The boiling temperature of milk is 72-80o c. So the powerful and harmful bacteria are
arrested.

 The raw milk are maximum 5hrs are in good condition.

Then the milk is tested by lab. There are different types of test is conducted. This is
conducted for the purpose of quality check, sourness, long life of the milk from each and
every society sampling milk was given for testing.

1.1.7.2 TEST PROCESS

1.1.7.2.1ORIGINAL TEST
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 The raw milk collected from the society has to undergo an original test by the quality
controller. It contains two types of test. They are

1. Smell:

The quality of the raw milk is first checked by smelling it.

2. Taste:

If the above test is not satisfied the raw milk is tasted to find its sourness.

1.1.7.2.2 CLOT ON BOILING TEST (COB)

Clot on Boiling Test is carried only when the original test is not satisfied. Clot on
boiling test means a sample of milk is tank in a test tube and heated to find its sourness. This
test is performed is a rare case.

1.1.7.3 METHYLENE BLUE REDUCTION TEST (MBR)

This test is for how long the milk can be able to in good conditions.

1.1.7.3.1 SAMPLE OF MILK FROM EACH SOCIETY

After performing the above test and getting satisfaction the raw milk is procured. A
sample of milk from each society is taken in a small bottle for dong a laboratory test to find
the content of FAT and SNF (Solid with Not Fat) for pricing of milk.

1.1.7.3.2 WEIGHTIEST OF RAW MILK FROM EACH SOCIETY

After taking the sample of raw milk of each society, it is weighed in a Electronic
weight machine and it is filtered and sent to the Dump tank.

The following are the some of the test are done in lab.

 Fat
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  SNF

 Acidity

 Phosphate test

 Microbiological test

1.1.7.4 STORAGE MILK

The milk is stored by storage tank. There are 6 storage tanks in the storage room.
5,000lit plants and 10,000lit plant capacity take are used. Boiled milk is going to the storage
tank from that it is going to the packing process. The packed milk is stored in 5 degree
centigrade.

1.1.7.5 PROCESSING OF RAW MILK

The raw milk from the Dump tank is sent to the cooling machine. In the cooling
machine the milk is chilled at 5c – 9c. The chilled milk is sent to a storage tank called SILO
tank through a pipe line. The capacity of the tank is 30,000 liters which is in vertical position.

1.1.7.6 PASTEURIZATION

The milk from the SILO tank is sent for the pasteurization process through thr pipe
line. Pasteurization is the process of heating the milk to a temperature of 80.c and it is
suddenly cooled down to 5 degree. This is known as pasteurization process is carried to kill
the harmful bacteria’s, germs, etc. which are in the raw milk. Dairy has two pasteurization
process machine, one with 5000 liters capacity and another with 10,000 liters capacity.

FLOW CHART OF MILK COLLECTION FROM SOCIETY TO THE

SALE OF MILK TO CUSTOMER
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 Milk collection from the members

Societies

Milk from individual members at society

Dairy plant

Plot from test by the individual

Smell
Taste

Weighing the milk of individual society

Sampling the milk from individual

society

Raw milk chilling at 6 c Quality test of raw material at lab

FAT
Processing the milk at 4 c
SNF

Adulteration
A
Acknowledgement slip to
individual societies Date entry to computer

FAT FAT

SNF SNF

Rate Weighing of milk

Quantity in kg A

Storage tank

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 Toned Milk Standardized Milk Premium Milk
FAT FAT 4.5% FAT 5.0%
3.0% SNF 8.5% SNF
SNF 8.5% 9.5%

Quality Test

Fat

SNF

Metholin blue reduce test

Acidity

Phonphatane test

Microbiological test

To pre pack machine

Packing of Milk
a) TM b) SM c) PM

Stored at cold store room at 40c

Loaded at vehicle

To Milk Booth

To consumer

1.1.7.7 CREAM SEPARATION

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 After pasteurization, the milk is sent to the cream separator machine. In this machine,
the FAT is separated from the milk called cream. The FAT with water is called the cream.
The cream collected through the cream separation process is sent to a machine called Agitator
in order to produce Ghee.

1.1.7.8 HOMOGENEOUS PROCESS

Homogeneous process is carried to grind the FAT contained in the milk. In case, if
raw milk contains more Fat, it is difficult to separate the FAT in the cream separation. So
before cream separation the pasteurized milk is to be carried on Homogeneous process. In the
Homogeneous process that FAT is completely grinding which is helpful for cream separation.

1.1.7.9 GRADING OF MILK

After pasteurization the cream separation the milk is sent to the storage tank. There
are six storage tank each having a capacity of 5,000 liters. Here, the milk is graded according
to the FAT and SNF content. After storing the milk in the storage tank, the sample of milk
from each tank is taken for lab list to find the standard of milk. After finding the standard of
the milk through Lab test by considering the FAT and SNF value it may be increased or
decreased for producing different standards of milk, because PONLAIT is producing three
grades of milk. They are,

 Tonned milk

 Standardized Milk

 Premium Milk.

The FAT and SNF value is different for each other milk. The values are given below.

Table 1.3
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 STANDARDS OF MILK

MILK FAT SNF PRICE

TONNED MILK 3% 8.5% -

STANDARDIZED MILK 4.5% 8.5% -

PREMIUM MILK 5.0% 9.0% -

Cream is added to increase the FAT content whereas to decrease the FAT content
skim milk is added. Skim milk is milk which contains 0.1% of FAT.

SNF is increased or boosted by adding skimmed milk powder with the milk.

1.1.7.10 PRODUCTION OF MILK PRODUCTS

The various milk products PONLAIT products are the following;

 GHEE

 KHOVA

 FLAVOURED MILK

 PANEER

 CURD

 BUTTER MILK COFFEE

 HOT MILK

 SOFTY ICE CREAM

GHEE

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 The cream separated from the milk is put into a tank and its pumped and taken into a
machine called Agitator for the preparation of Ghee. The cream is heated at a temperature of
180c and it became melts and the Ghee is produced. The Ghee produced is further carried on
a sterilization process for preservation and after filtering it is packed for sales.

KHOVA

The standardized milk and premium milk of equal proportion is taken in a Khova
preparation was (Khadai) and it is boiled of 120c, 87% of water is evaporated on heating and
the remaining 13% of protein formed is the Khova. Sugar is added for taste. Sugarless Khova
is also prepared.

FLAVORED MILK

Flavored milk is prepared from tonned milk which is boiled at 120c and the
ingredients like Badam Powder, sugar, kasseri powder are mixed with the milk while boiling.

PANEER

Standardized milk and premium milk of equal proportion is taken in the water and
boiled at 120c and after filtering, citric acid mixed with water us mixed. The milk became
sour. Then it is placed in a pressing machine and it is pressed to remove the water, then is to
be cooled and preserved is the paneer.

BUTTER MILK

Curd is mixed with chill water and natural essence like chilly, ginger etc., is added for
the preparation of butter milk. Salt is added for taste.

1.1.8 CATTLE FEED PRODUCTION

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  PONLAIT owns a cattle feed plant of 5MT/per day capacity in Thattanchavady
Industrial Estate, Puducherry – 605009.

 Compounded cattle feed is produced with cost effective ingredients and supplied to
the members through dairy co-operative societies on Non-profit motive.

 PONLAIT is extending subsidy of Rs.100 provided by the Govt. of Puducherry to

each bag containing 50 kg of feed out of the total cost of Rs.312 per bag.

 The present monthly production and supply is 235 MTS.

 The addition PONLAIT cattle feed is supplied to neighboring Villupuram District

dairy also.

 Batch wise the cattle feed is being tested its quality regularly.

 The balance compounded cattle feed production in the PONLAIT cattle feed plant as
proved to be effective for animal health and Quality milk production.

1.1.9 MARKETING DEPARTMENT

The sales office which is located at Mission Street, puducherry deals with marketing
activities like fixing of price, distribution of its price and also maintain records relating to sale
of finished goods.

Distribution of PONLAIT products:

The PONLAIT milk has been distributed to the customer through

 Milk Parlors

 Commission Agents

The milk products have been distributed only through

1.1.9.1 MILK PARLORS

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Sales of PONLAIT

 Cash Sales

 Credit Sales

 Card Sales

 Order Basis

CASH SALES

Cash sales are done to the commission agent and to any other customer who directly
purchase PONLAIT milk in the marketing office and milk parlors.

CREDIT SALES

Credit sales of PONLAIT milk are done only for government institution and private
organization. The milk is directly supplied to the institutions and organization through the
union Lorries. PONLAIT gives a maximum credit period of one month to their customers.

CARD SALES

For the connivance of the monthly salary earners, cards are sold from the marketing
office. Making use of this card the consumers can purchase from anyone of the milk booth,
milk parlor and from selection private retailers.

ORDER BASIS

The PONLAIT milk is also sold even on placing the order. If the consumer wants the
milk for any function they can order to the marketing office. Then they can collect the
PONLAIT milk from the nearest milk booth.

1.1.9.2 PRICING OF POLAIT PRODUCTS

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 Right price is the one which brings the best ultimate value. The following tables had
shown the price of the various products of PONLAIT.

Table 1.4

PRICE LIST OF PASTEURIZED MILK

Pasteurized Milk Price (in Rs.)

Pasteurized Tonned Milk 500ML 9.00

Pasteurized Tonned Milk 200ML 3.50

Pasteurized Premium Milk 500ML 12.00

Table 1.5

PRICE LIST OF OTHER TYPES OF MILK

Types of Milk Price (in Rs.)

Flavored Milk 7.00

Hot Milk 5.00

Table 1.7

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 PRICE LIST OF KHOVA

Khova Price (in R.s)

Khova 50gm 7.00

Khova 100gm 14.00

Khova 200gm 28.00

Khova 1kg 140.00

Sugarless Khova 1kg 170.00

Table 1.8

PRICE LIST OF GHEE

Ghee Price (in Rs.)

Ghee 100gm 27.00

Ghee 200gm 47.00

Ghee 500gm 105.00

Ghee 1kg 200.00

Ghee 2kg 400.00

Ghee 5kg 1000

Table 1.9

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 PRICE LIST OF OTHER PRODUCTS

products Price(in Rs.)

Ice cream 50gm 5.00

Ice cream 100gm 10.00

Curd 1kg 25.00

Paneer 1kg 150.00

Sterilized Flavored milk 200ml 12.00

Badam powder 200gm 45.00

Butter milk 200ml 4.00

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