SUMMER TRAINING PROJECT

ON

WORKING CAPITAL OF VERKA MILK PLANT LUDHIANA

Submitted To

I.K. GUJRAL PUNJAB TECHNICAL UNIVERSITY KAPURTHALA

In partial fulfillment of the requirement for the award of

Degree of

Master of Business Administration (MBA)

Submitted By Supervisor

Romanpreet Kaur Palak Sachdeva

2232255 Charted Accountant (CA)

DEPARTMENT OF MANAGEMENT

GULZAR GROUP OF INSTITUTES

KHANNA

(2022-2024)
CERTIFICATE
 STUDENT DECLARATION

I, “Romanpreet Kaur”, hereby declare that I have undergone my summer training at “Verka Milk Plant
Ludhiana” from 11/06/2023 to 23/07/2023. I have completed a research project tilted “WORKING
CAPITAL OF VERKA MILK PLANT” under the guidance of .Ms’ Palak Sachdeva.

Further I hereby confirm that the work presented herein is genuine and original and has not been
published elsewhere.

Romanpreet Kaur
 FACULITY DECLARATION

I hereby declare that the student Mr. / Ms. Romanpreet Kaur of MBA (II) has undergone his/her summer
training under my periodic guidance on the Project titled
“WORKING CAPITAL OF VERKA MILK PLANT”.

Further I hereby declare that the student was periodically in touch with me during his/her training period
and the work done by student is genuine & original.

-------------------

(Signature of Supervisor)
ACKNOWLEDGEMENT
 TABLE OF CONTENTS

Certificate by Guide ii
Student Declaration iii
Faculty Declaration iv
Acknowledgment v
CHAPTER NO. CHAPTER TITLE PAGE NO.
1 Introduction to the Company
2 Introduction to the Research Problem
3 Need, Scope and Objectives of the Study
4 Research Methodology
5 Data Analysis and Interpretation
6 Findings of the Study
7 Conclusion, Suggestions & Recommendations
of the Study
References and Bibliography
Appendix
(Questionnaire, Glossary of Terms, Abbreviations, Documents,
Performa, Financial statements, etc.)

LIST OF TABLES

TABLE NO. TABLE TITLE PAGE NO.

LIST OF FIGURES

FIGURE NO. FIGURE TITLE PAGE NO.

 Chapter – 1

INTRODUCTION
1.1 AN OVERVIEW OF TO CO-OPERARIVE MILK UNION

Concept of milk

Mostly our daily routine starts with the consumption of Tea, butter or coffee that requires milk along
with other ingredients. We consume milk and various other milk products daily

Earlier people were able to satisfy their needs for milk by their own cattle’s or by purchasing from
nearby sources. They used to prepare various milk products individually but milk provided by these
resources was not of good quality and was full of fat etc. so, people were in search of products it gave birth
to collection of milk at a single source and suppliers it to required ones.

Present concept of milk

With advancement of new methods and techniques used, to improve the quality of milk, good quality
of milk and milk products are prepared with diversity. Use of these techniques results in low cost, better
quality, and variety of products and offerings to consumers. As consumer is a “KING” today.

Co-operative milk union in India

“MILK UNION” Means union of milk producers, a union established when few people join hands for
some common purpose.

First cooperative milk union was established in 1965 at Kheda (Anand distt. In Gujarat State) by a Jat
famous as “Dairy King” and named AMUL (Anand MILK Union Ltd.) the dairy follows Anand pattern a
step to develop dairy as industry allied to agriculture and to prevent harassment farmers and consumers.
Before independence, there were dairy cards called “Poison Dairy” by English people. They were procuring
milk from the milk producers by force and without any payments. Exploited farmers gave birth to revolution
in the dairy business.

They join hands to prevent themselves from the harassment of English people, for their own betterment
and to provide good policy and right prices of milk products to consumers.

Here they started their own dairy at kheda. After independence NDDB (National Dairy development
board ) was established in Gujarat State and inaugurated by former P.M of india “Shri Lal Bahadur Shastri in
1965 .

Co-operative milk union in Punjab

Doing 1970-71 “operation flood 1” (a dairy program ) took place , where cover 18 district all over the
country to establish milk union as per recommendations of Shri Lal Bahudar Shastri. Under operation Flood
1 PDDC (Punjab Dairy Development Co- operation) selected Ludhiana District of Punjab as one of the milk
shed to develop (Anand pattern).It is first place in Punjab to establish milk unions.

Later on operation Flood 2 took place in 1980-81 which covers almost all districts in Punjab. At present
these Milk Unions are running successfully and achieving their goals in these entire country . Government is
also providing time –to-time facilities to these Milk Unions.
1.2 INTRODUCTION TO VERKA MILK PLANT

Verka is a flagship brand of MILKFED and came into being in 1973 when MILKFED was mandated for
milk procurement, quality processing of milk & its products and marketing of these products. “Verka” was
christened after the name of the place where the first plant was setup in Amritsar.

A trusted brand, Verka has become a household name and is loved by its customers for nutrition, quality and
sheer indulgence. It has consolidated its brand strength by not only retaining the high quality of existing
products but also by innovating and bringing new products to the tables of its diverse customers.

Verka has a wide range of products including different variants of Pasteurized pouch Milk, Ghee, Table
Butter, Skimmed Milk Powder, Whole Milk Powder, Dairy Whitener, Cheese, Sweetened Flavoured Milk,
Ice Cream, Indigenous sweets, along with Fresh Products like Lassi, Paneer, Dahi, Kheer and Tetra Pack
Products such as fruit beverages & Milk. The products are available in Punjab, Haryana, Himachal Pradesh,
Jammu & Kashmir and Northeast India. Verka also exports ghee to countries like the Middle East, Australia,
Japan, New Zealand and Malaysia.

Verka stands apart, with its promise of purity! In the milk testing done by NABL (National Accreditation
Board for Testing and Calibration Laboratories) accredited laboratory, Verka Gold has topped the full cream
milk category with a score of 88 out of 100. The brand registered the highest milk fat at 6.69%, a lower
saturated fat of 3.52%, and lower cholesterol content of 8.67mg/100g. Verka milk is also loaded with
Calcium and Vitamin A.

The Start of our Story

The Punjab State Cooperative Milk Producers’ Federation Limited, popularly known as MILKFED, came
into existence in 1973 to boost the dairy farming in the state. The primary objective of the Federation was to
provide a remunerative market to the milk producers in the state through value addition and effective
marketing of the produce. The other objective was to provide technical inputs to the milk producers for
enhancement of milk production.

Although the federation was registered much earlier, it took its current bigger role, in the year 1983 when all
the milk plants of the erstwhile Punjab Dairy Development Corporation Limited were handed over to
Cooperative sector under Operation Flood. This move was directed at the giving the farmers a better deal
and the customers better products. The organization setup follows a three tier system: Milk Producers
Cooperative Societies at the village level, Milk Unions at District level and Federation as an Apex Body at
State level. MILKFED Punjab has continuously advanced towards its coveted objectives well defined in its
bylaws.
Collecting the Drops of Goodness

Currently, Verka sources milk from over 3,50,000 members of around 6300 village milk producers’
cooperative societies. These village level cooperatives work under 11 district milk producers’ unions with 9
milk plants having a consolidated milk handling capacity of around 30,00,000 litres per day. Each Verka
product is the manifestation of natural goodness unlocked by adopting state of the art technology.

Verka has paid remunerative price of up to Rs 710/- per kg fat to the milk producers in FY 2021-22. Apart
from an attractive price, transparency in payments, better testing and effective quality assurance systems
makes Verka the perfect choice for the milk producers. This culminates into high milk procurement by the
brand. It procured an average 19.16 lac litres of milk per day during FY 2021-22 as against 18.49 lac litres of
milk per day during the FY 2020-21.

VERKA NETWORKS

With an aim to maximum reach out to its consumers, Verka has developed a widespread network of milk
unions in different towns of Punjab. The primary aim was to provide a lucrative milk market to the state
milk producers by value addition and marketing of produce. Another of its objective was to provide
technical inputs for the enhancement of milk production.

Milkfed has strong base with 11 District Cooperative milk unions having 9 milk plants of the unions (except
Ferozpur & Faridkot). Additionally, Milkfed has 2 Cattle Feed Plants at Khanna & Ghania Ke Banger, 1
Fodder Seed Processing Unit at Bassi Pathana, 1 Frozen Semen Station at Khanna, 2 ice cream
manufacturing plants at Chandigarh & Bathinda, and state of the art UHT plants at Chandigarh & Bassi
Pathana. The total handling capacity of milk plants is 30.00 lac litres per day.

With advanced technology and customer satisfaction in mind, Verka strives to provide best quality products
to its esteemed customers in almost all of Punjab.
 FEROZPUR

SANGRUR FARIDKOT

CHANDIGARH BATHINDA

VERKA
MOHALI AMRITSAR
NETWORKS

PATIALA GURDASPUR

LUDHIANA HOSHIARPUR

JALANDHAR

1.3 Mission Vision and Objectives of Verka Milk Plant

Mission vision and objectives of verka milk plant are written as follows:
Vision

To become most admired brand in the dairy section and vibrant cooperative institutions in the country,
facilitating inclusive growth.

Mission

Ensuring prosperity to the milk producers’ by ensuring milk procurement at remunerative prices around the
year coupled with providing quality extension services for enhancing milk production as well as reducing
costs. Ensuring quality presence of milk and production of milk in a clean, hygienic manner and making
them available to the consumers at a reasonable prices through excellence in market.

Objective

 To ensure quality milk procurement at remunerative price coupled with improved animal
productivity for reducing cost of milk production for sustainable growth of the milk producers.
 To provide quality extension services at the door steps of milk producers.
 To ensure Quality Assurance in procurement, processing & marketing and enhancing efficiency in
the entire value chain.
 To ensure acquisition, development and retention of competent manpower.
 To improve fiscal management by optimizing the returns on capital.
 To ensure continual modernization in the entire value chain through effective leveraging of
technology.
 To embrace innovation in the entire value chain for consumer delight.
 To ensure continual expansion of distribution.
 To enhance brand equity.
1.4 SWOT Analysis of verka milk plant

SWOT Analysis is a framework for identifying and analysing the organization’s Strength, Weakness,
Opportunity and Threats. These words make up the SWOT acronym. The primary goal of SWOT analysis is
to increase awareness of the factors that go into making a business decision or establishing a business
strategy.

STRENGTH

 Brand loyalty among the customer for verka products.

 Good brand image of verka products in the mind of customers.
 Faith on verka products by the customers.

WEAKNESS

 Lack of proper advertisement by the plant such as posters, glow signs.

 Lack of proper agencies system in covering the rural areas.
 Lack of proper marketing networks in rural areas as like in urban areas.

OPPORTUNITY

 Greatly improved expert potential for milk products of western as well as traditional types.
 Proper utilization of available resources to decrease per unit cost.
 By product utilization for import substitute.

THREATS

 Introduction of foreign products in Indian market

 Poor quality of milk.
  The liberalization of dairy industry is likely to exploit by multinationals. They will be interested in
manufacturing milk products in yield high profits.

1.5 BOARD OF DIRECTORS OF VERKA MILK PLANT

MEMBERS OF BOARD OF DIRECTORS

Sr.
Member Designation
No.
1. Narinder Singh Shergill Chairman
2. Sh.Bhupinder Singh Randhawa Director
3. Sh.Baljeet Singh Director
4. Sh.Rameshwar Singh Director
5. Sh.Ranjit Singh Director
6. Sh.Amandeep Singh Director
7. Sh.Harminder Singh Director
8 Sh.Gurbhej Singh Tibbi Director
9 Sh.Tejinder Singh Director
Finance Commissioner & Secretary, Department of Animal Husbandry, Punjab
10
Govt., Chandigarh or his representative
11 Registrar, Cooperative Societies, Punjab, Chandigarh or his representative
12 Managing Director, Milkfed Punjab
13 Sh.Rajesh Gupta Nominee N.D.D.B.
14 Dr. Kaushik Khamrui Nominee N.D.R.I.
Nominee
15 Dr. Ravinder Singh Grewal
GADVASU

1.6 Organizational structure

Chairman Sh. Narinder Singh Shergill

Sh. Amit Dhaka (IAS)
Managing Director
Email ID: md@verka.coop
Departments:
CIVIL
Harjinder Singh
Manager
Email ID: civil.milkfed@verka.coop
Procurement & Live Stock Management
Rainoo Dhar Dr. Amritpal Singh
General Manager Dy. Manager
Email ID: gmplm.milkfed@verka.coop Email ID: amritpal.johar@verka.coop

Quality Assurance & Engineering

Sanjeev Sharma Sameer Kohli
General Manager Dy. Manager

Email ID: gmqa.milkfed@verka.coop Email ID: sameerkohli@verka.coop

Marketing
Harminder Singh Sandhu Parminder Kumar

General Manager, Marketing Dy. General Manager, Marketing

Email ID: gmmktg.milkfed@verka.coop Email ID: parminderkumar@verka.coop

Rajiv Bajaj Vikram Katyal

Manager Manager
Email ID: rajivbajaj@verka.coop Email ID: vikramkatyal@verka.coop
Bonny Vatwani Nitesh Sangwan
Deputy Manager Deputy Manager

Email ID: bonny.vatwani@verka.coop Email ID: niteshsangwan@verka.coop

Karan Sharma Alok Bhatia

Asst. Manager Asst. Manager

Email ID: karansharma@verka.coop Email ID: alokbhatia@verka.coop

M.I.S, Systems & IT

Sanjeev Sharma Sandeep Jain
General Manager (Systems & MIS) Deputy Manager

Email ID: mis.milkfed@verka.coop Email ID: mis.milkfed@verka.coop

Purchase
Rainoo Dhar Manika Agarwal
General Manager Deputy Manager

Email ID: pur.milkfed@verka.coop Email ID: manika@verka.coop

Finance & Accounts

Rajiv Goyal Shivali Gupta
Deputy Manager Deputy Manager

Email ID: acc.milkfed@verka.coop Email ID: shivaligupta@verka.coop

Administration/HR
Jasbir Singh Riar Sumansh Vashisth
Dy. General Manager Manager

Email ID: admn.milkfed@verka.coop Email ID: sumanshvashisth@verka.coop

1.7 TURNOVER

The annual turnover of verka milk plant Ludhiana with profit from FY 2016 to FY 2022 is as written as
follows:

YEAR TURNOVER IN CR. PROFIT IN LAC.

2016-17 664.05 678.42
2017-18 649.94 435.66
2018-19 715.67 535.61
2019-20 732.12 549.13
2020-21 794.48 579.62
2021-22 806.89 598.98

1.8 Products of Verka Milk Plant

MILK

 Verka gold

About Verka Gold: Verka Full Cream Milk is pasteurized and hygienically packed in advanced milk
processing plants through milk pouch filling machines. Verka Gold meets the requisite FSSAI standards.
Due to its high cream content, Verka Gold is ideal for direct consumption and making rich tea, coffee, Dahi,
Khoa, ghee, lassi. paneer, sweets etc.
Packing: Verka Gold is available in convenient packing of 500 ml, 1000 ml & newly launched 1500ml
across all major markets of Punjab,HP & Delhi. Verka Gold’s 6 liter institutional/bulk pack is also available
which is ideal for Halwais, hostels, functions etc.

Product specifications:
Composition – MILK SNF (min): 9%
MILK FAT(min): 6

 Verka shakti

About Verka Shakti: Verka Standard Milk is pasteurized and hygienically packed in advanced milk
processing plants through milk pouch filling machines. Verka Shakti meets the requisite FSSAI standards.
Due to its balanced cream content, Verka Shakti is ideal for direct consumption and preparing rich tea,
coffee, dahi, Khoa, Ghee, Lassi, paneer, sweets etc.

Packing: Verka Shakti is available in convenient packing of 500 ml, 1000ml & newly launched 1500ml
across all major markets of Punjab, HP and Delhi. Verka Shakti’s 6 liter institutional/bulk pack is also
available which is ideal for Halwais, hostels, functions etc.

Product specifications:
Composition – MILK SNF(min): 8.5%
MILK FAT (min): 4.5%

 Cow milk
About Verka Cow Milk: Verka Cow Milk is pasteurized and hygienically packed in advanced milk
processing plants through milk pouch filling machines. Verka Cow Milk

meets the requisite FSSAI standards. Due to its optimal cream content, Verka Cow Milk is ideal for direct
consumption and preparing daily tea, coffee, dahi, Khoa, Lassi, paneer, sweets etc.

Packing: Verka Cow Milk is available in convenient packing of 500 ml and 1.5 litres in all major markets of
Punjab, HP & Delhi.

Product specifications:
Composition – MILK SNF(min): 8.5%
MILK FAT(min): 4.0%

 Verka taaza

About Verka Taaza: Verka toned Milk is pasteurized and hygienically packed in advanced milk processing
plants through milk pouch filling machines. Verka Taaza meets the requisite FSSAI standards. Due to its
optimal cream content, Verka Taaza is ideal for direct consumption and preparing daily tea, coffee, dahi,
Khoa, Lassi, paneer, sweets etc.

Packing: Verka Taaza is available in convenient packing of 500 ml & 1000 ml across all major markets of
Punjab, HP & Delhi. Verka Taaza’s 6 liter institutional/bulk pack is also available which is ideal for
Halwais, hostels, functions etc.

Product specifications:
Composition – MILK SNF (min): 8.5%
MILK FAT (min): 3.0%
  Verka slimmer’s

About Verka Slimmer’s: Verka Double Toned Milk is pasteurized and hygienically packed in advanced
milk processing plants through milk pouch filling machines. Verka Slimmer’s meets the requisite FSSAI
standards. Due to its low cream content, Verka Slimmer’s is ideal for direct consumption and preparing daily
tea, coffee, dahi, Khoa, Lassi, paneer, sweets etc.

Packing: Verka Slimmer’s is available in convenient packing of 200ml/250ml, 500 ml & 1000ml across all
major markets of Punjab, HP & Delhi. Verka Slimmer’s 6 liter institutional/bulk pack is also available which
is ideal for Sweet makers, hostels, functions etc.

Product specifications:
Composition – MILK SNF(min): 9.0%
MILK FAT(min): 1.5%

 Verka lite

About Verka Lite: Verka Skimmed Milk is pasteurized and hygienically packed in advanced milk
processing plants through milk pouch filling machines. Verka Lite meets the requisite FSSAI standards. Due
to its extremely low cream content, Verka Lite is ideal for direct consumption and preparing daily tea,
coffee, dahi, Khoa, Lassi, paneer, sweets etc.

Packing: Verka Lite is available in convenient packing of 500 ml in selected markets of Chandigarh Tricity.

Product specifications:
Composition – MILK SNF(min): 8.7%
MILK FAT(min): 0.5%
FRESH PRODUCTS

 Dahi

BIBLIOGRAPHY

https://verka.coop/about-us/

https://verka.coop/network/