INTRODUCTION

In the present scenario of intense competition, management education is

very important one. Information knows about the management functions and a
minute activity through the proper training is very essential. Through this training
the students can develop their knowledge, skills and ability with the practical
exposure in the corporate sector.

Each and every student is understood about the production, marketing,

sales and finance management activities. By these activities they may think about
the new approaches in developing the business in the current business scenario. It
helps the students for knowing and understanding about the business tactics,
approaches and how to face the intense competition which is present in the
prevailing environment.

Through this training, practical and technical knowledge of the students

are improved. It helps to increase the self-confidence of the students and it also
help foe getting the employment opportunities. The purpose of training is
basically a bridge to the gap between job and job requirement and present
competence of an employee.

Training is aimed at improving the behavior and performance of persons.

Training is closed related with education. Training is essentially consisting of
practical knowledge and skill required in performing specific tasks.

Managerial development is a planned, systematic and continuous process

of learning and growth designed to individual behavioral changes in individuals
by cultivating their mental abilities and inherent qualities for their effective
performance of the work of the managing. A manager control can be developed
only by taking a course attending a lecture and conference. Management

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development implies development of the people of different attitudes, talents,
aspiration, needs and motivation.

Training

Training the newly recruited employees is the important step in the human
resource management process. Systematic and scientific training is the corner
stone of a sound manpower management. Training is the process of increasing the
knowledge, skills, aptitude and abilities of an employees for doing the specific job
in an efficient manner. It implies imparting technical knowledge, manipulative
skills, problems solving ability and positive attitude into the employees. The
resource used up in human resources training in an investment in human assets
and the skills acquired in the process are an advantage for both the enterprise and
the employee.

The purpose of training is to enable employees to get acquainted with their

present and prospective jobs. It makes new employees more productive and
efficient in the minimum of time and makes the old employees familiar with new
machines and techniques by refreshing their knowledge, the need for formal and
systematic training has increased because of the rapid technological changes
which create new job opportunities. These new jobs demand certain special skills
that need to be developed in all employees through appropriate and best operating
methods.

Advantage of the Training

 Higher Performance
 Lesser Learning Period
 Uniformity of Procedures
 Manpower Development
 Economy of Material and Equipment
 Less Supervision
 High Morale

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Training Goals

The goals of the training program should relate directly to needs

determined by the assessment process. Course objectives should clearly state what
behavior or skill will be changesasa results of the training and should include
milestones to help the employee from where he or she is today to where the firms
wants him or her in the future. Setting goals, helps to evaluate the training
program and also to motivate employees. Allowing employees to participate in
setting goals increase the probability of success.

Evaluation of Training

Training should be evaluated several times during the process. Determine

this milestone when you develop the training. Employees should be evaluated by
comparing their newly acquired skills with the skills defined by the goals of the
employees.

Benefits of Training Evaluation

Evaluation acts as a check to ensure that the training is able to fill the
competency gaps within the organisation in a cost effective way. This is specially
very important in wake of the fact the organisations are trying to cut costs and
increase globally. Some of the benefits of the training evaluation are as under:

 Evaluation Ensures Accountability - Training evaluation ensures that

training programs comply with the competency gaps and that the
deliverables are not compromised upon.
 Check the Cost - Evaluation ensures that the training programs are
effective in improving the work quality, employee behaviour, attitude and
development of new skills within the employee within a certain budget.
Since globally companies are trying to cut their costs without
compromising upon the quality, evaluation just aims at achieving the same
with training.

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  Feedback to the Trainer / Training - Evaluation also acts as a feedback
to the trainer or the facilitator and the entire training process. Since
evaluation accesses individuals at the level of their work, it gets easier to
understand the loopholes of the training and the changes required in the
training methodology.

Need and Significance of the Training

 To know that how the theoretical concepts are implemented in the

organization.

 To know the industrial practices of the organization.

Objectives of the Training

 To gain knowledge about the functional departments of the

organization;

 To have the clear cut idea about office system and procedures;

 To know about the functions performed by each departments available

in the organization;

 To understand about the working conditions and safety measures

provided to the workers; and

 To know about the performance appraisal system of workers and

executives.

Limitations of the Training

 Due to time constraints the trainee was not able to gain sufficient
knowledge.
 The employees were reluctant to provide relevant information.

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 THE DAIRY INDUSTRY

Today, India is 'The Oyster' of the global dairy industry. It offers

opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of
the world's largest and fastest growing markets for milk and milk products. A
bagful of 'pearls' awaits the international dairy processor in India. The Indian
dairy industry is rapidly growing, trying to keep pace with the galloping progress
around the world. As he expands his overseas operations to India many profitable
options await him. He may transfer technology, sign joint ventures or use India as
a sourcing center for regional exports. The liberalization of the Indian economy
beckons to MNC's and foreign investors alike.

India’s dairy sector is expected to triple its production in the next 10 years
in view of expanding potential for export to Europe and the West. Moreover with
WTO regulations expected to come into force in coming years all the developed
countries which are among big exporters today would have to withdraw the
support and subsidy to their domestic milk products sector. Also India today is the
lowest cost producer of per litre of milk in the world, at 27 cents, compared with
the U.S' 63 cents, and Japan’s $2.8 dollars. Also to take advantage of this lowest
cost of milk production and increasing production in the country multinational
companies are planning to expand their activities here. Some of these milk
producers have already obtained quality standard certificates from the authorities.
This will help them in marketing their products in foreign countries in processed
form.

The urban market for milk products is expected to grow at an accelerated

pace of around 33% per annum to around Rs.43,500crores by year 2005. This
growth is going to come from the greater emphasis on the processed foods sector
and also by increase in the conversion of milk into milk products. By 2005, the

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value of Indian dairy produce is expected to be Rs 10,00,000 million. Presently
the market is valued at around Rs7,00,000mn

Background

India with 134mn cows and 125mn buffaloes, has the largest population of
cattle in the world. Total cattle population in the country as on October'00 stood at
313mn. More than fifty percent of the buffaloes and twenty percent of the cattle in
the world are found in India and most of these are milch cows and milch
buffaloes.

Indian dairy sector contributes the large share in agricultural gross

domestic products. Presently there are around 70,000 village dairy cooperatives
across the country. The co-operative societies are federated into 170 district milk
producers unions, which is turn has 22-state cooperative dairy federation. Milk
production gives employment to more than 72mn dairy farmers. In terms of total
production, India is the leading producer of milk in the world followed by USA.
The milk production in 1999-00 is estimated at 78mn MT as compared to 74.5mn
MT in the previous year. This production is expected to increase to 81mn MT by
2000-01. Of this total produce of 78mn cows' milk constitute 36mn MT while rest
is from other cattle.

While world milk production declined by 2 per cent in the last three years,
according to FAO estimates, Indian production has increased by 4 per cent. The
milk production in India accounts for more than 13% of the total world output and
57% of total Asia's production. The top five milk producing nations in the world
are India ,USA, Russia, Germany and France.

Although milk production has grown at a fast pace during the last three
decades (courtesy: Operation Flood), milk yield per animal is very low. The main
reasons for the low yield are

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  Lack of use of scientific practices in milching.

 Inadequate availability of fodder in all seasons.

 Unavailability of veterinary health services.

Operation Flood

 The transition of the Indian milk industry from a situation of net import to
that of surplus has been led by the efforts of National Dairy Development
Board's Operation Flood. programme under the aegis of the former
Chairman of the board Dr. Kurien.

 Launched in 1970, Operation Flood has led to the modernization of India's

dairy sector and created a strong network for procurement processing and
distribution of milk by the co-operative sector. Per capita availability of
milk has increased from 132 gm per day in 1950 to over 220 gm per day in
1998. The main thrust of Operation Flood was to organize dairy
cooperatives in the milkshed areas of the village, and to link them to the
four Metro cities, which are the main markets for milk. The efforts
undertaken by NDDB have not only led to enhanced production,
improvement in methods of processing and development of a strong
marketing network, but have also led to the emergence of dairying as an
important source of employment and income generation in the rural areas.
It has also led to an improvement in yields, longer lactation periods,
shorter calving intervals, etc through the use of modern breeding
techniques. Establishment of milk collection centers, and chilling centers
has enhanced life of raw milk and enabled minimization of wastage due to
spoilage of milk. Operation Flood has been one of the world's largest dairy
development programme and looking at the success achieved in India by
adopting the co-operative route, a few other countries have also replicated
the model of India's White Revolution.

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Growing Volumes

The effective milk market is largely confined to urban areas, inhabited by

over 25 per cent of the country's population. An estimated 50 per cent of the total
milk produced is consumed here. By the end of the twentieth century, the urban
population is expected to increase by more than 100 million to touch 364 million
in 2000 a growth of about 40 per cent. The expected rise in urban population
would be a boon to Indian dairying. Presently, the organized sector both
cooperative and private and the traditional sector cater to this market.

The consumer access has become easier with the information revolution. The
number of households with TV has increased from 23 million in 1989 to 45
million in 1995. About 34 per cent of these households in urban India have access
to satellite television channel.

Potential for Further Growth

Of the three A's of marketing - availability, acceptability and affordability,

Indian dairying is already endowed with the first two. People in India love to
drink milk. Hence no efforts are needed to make it acceptable. Its availability is
not a limitation either, because of the ample scope for increasing milk production,
given the prevailing low yields from dairy cattle. It leaves the third vital
marketing factor affordability. How to make milk affordable for the large majority
with limited purchasing power? That is essence of the challenge. One practical
way is to pack milk in small quantities of 250 ml or less in polythene sachets.
Already, the glass bottle for retailing milk has given way to single-use sachets
which are more economical. Another viable alternative is to sell small quantities
of milk powder in mini-sachets, adequate for two cups of tea or coffee.

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Marketing Strategy for 2000 AD

Two key elements of marketing strategy for 2000 AD are: Focus on strong
brands and, product mix expansion to include UHT milk, cheese, ice creams and
spreads. The changing marketing trends will see the shift from generic products to
the packaged quasi, regular and premium brands. The national brands will
gradually edge out the regional brands or reduce their presence. The brand image
can do wonders to a product's marketing as is evident from the words of Perfume
Princess Coco Channel: In the factory, we pack perfume; in the market, we sell
hope.

Emerging Dairy Markets

 Food Service Institutional Market:It is growing at double the rate of

consumer market

 Defense Market: An important growing market for quality products at

reasonable prices

 Ingredients Market: A boom is forecast in the market of dairy products

used as raw material in pharmaceutical and allied industries

 Parlour Market: The increasing away-from-home consumption trend

opens new vistas for ready-to-serve dairy products which would ride
piggyback on the fast food revolution sweeping the urban India.

India, with her sizable dairy industry growing rapidly and on the path of
modernization, would have a place in the sun of prosperity for many decades to
come. The one index to the statement is the fact that the projected total milk
output over the next 15 years (1995-2010) would exceed 1457.6 million tonnes
which is twice the total production of the past 15 years!

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Penetration of Milk Products

Western table spreads such as butter, margarine and jams are not very
popular in India. All India penetration of butter/ margarine is only 4%. This is also
largely represented by urban areas, where penetration is higher at 9%. In rural
areas, butter/ margarine have penetrated in 2.1% of households only. The use of
these products in the large metros is higher, with penetration at 15%.

Penetration of cheese is almost nil in rural areas and negligible in the

urban areas. Per capita consumption even among the cheese-consuming
households is a poor 2.4kg pa as compared to over 20kg in USA. The lower
penetration is due to peculiar food habits, relatively expensive products and also
non-availability in many parts of the country. Butter, margarine and cheese
products are mainly manufactured by organized sector.

Similarly, penetration of ghee is highest in medium sized towns at 37.2%

compared to 31.7% in all urban areas and 21.3% in all rural areas. The all India
penetration of ghee is 24.1%. In relative terms, penetration of ghee is significantly
higher in North and West, which are milk surplus regions. North accounts for
57% of ghee consumption and West for 23%, South & East together account for
the balance 20%. A large part of ghee is made at home and by small/ cottage
industry from milk. The relative share of branded products in this category is very
low at around 1-2%.

Milk powder and condensed milk have not been able to garner any
significant consumer acceptance in India as indicated by a very low 4.7%
penetration. The penetration is higher at 8.1% in urban areas and lower at 3.5% in
rural areas. Within urban areas, it is relatively higher in medium sized towns at
8.5% compared to 7.7% in a large metros.

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Export Potential

India has the potential to become one of the leading players in milk and
milk product exports. Locational advantage : India is located amidst major milk
deficit countries in Asia and Africa. Major importers of milk and milk products
are Bangladesh, China, Hong Kong, Singapore, Thailand, Malaysia, Philippines,
Japan, UAE, Oman and other gulf countries, all located close to India.

Low Cost of Production

Milk production is scale insensitive and labour intensive. Due to low

labour cost, cost of production of milk is significantly lower in India.Concerns in
export competitiveness are

Quality: Significant investment has to be made in milk procurement, equipments,

chilling and refrigeration facilities. Also, training has to be imparted to improve
the quality to bring it up to international standards.

Productivity: To have an exportable surplus in the long-term and also to maintain

cost competitiveness, it is imperative to improve productivity of Indian cattle.

There is a vast market for the export of traditional milk products such as
ghee, paneer, shrikhand, rasgolas and other ethnic sweets to the large number of
Indians scattered all over the world

The Indian Dairy Industry has to Offer to Foreign Investors

India is a land of opportunity for investors looking for new and expanding
markets. Dairy food processing holds immense potential for high returns. Growth
prospects in the dairy food sector are termed healthy, according to various studies
on the subject.

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The basic infrastructural elements for a successful enterprise are in place.

 Key elements of free market system

 Raw material (milk) availability

 An established infrastructure of technology

 Supporting manpower

An entrepreneur's participation is likely to provide attractive returns on the

investment in a fast growing market such as India, along with an export potential
in the Middle East, Singapore, Malaysia, Indonesia, Korea, Thailand, Hong Kong
and other countries in the region.

Among several areas of potential participation by NRIs and foreign

investors, the following list outlines a few promising opportunities:

Biotechnology

 Dairy cattle breeding of the finest buffaloes and hybrid cows

 Milk yield increase with recombinant somatotropin

 Recombinant chymosin, acceptable to vegetarian consumers

 Dairy cultures, probiotics, dairy biologics, enzymes and coloring materials

for food processing

 Fermentation derived foods and industrial products alcohol, citric acid,

lysine, flavor preparations, etc.

 Biopreservative ingredients based on dairy fermentation, viz., Nisin,

pediococcin, acidophilin, bulgarican contained in dairy powders.

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Dairy/Food Processing Equipment

Potential exists for manufacturing and marketing of cost competitive food

processing machinery of world-class quality.

Food Packaging Equipment

Opportunities lie in the manufacturing of both machinery and packaging

materials that help develop brand loyalty and a clear edge in the marketing of
dairy foods.

Distribution Channels

For refrigerated and frozen food distribution, a world class cold chain
would help in providing quality assurance to the consumers around the region.

Retailing

There is scope for standardizing and upgrading food retailing in major

metropolitan cities to meet the shopping needs of a vast middle class. This area
includes grocery stores of European and North American quality, warehousing
and distribution.

Future Plans

 Increasing the milk handing capacity.

 Increasing the milk procurement to 3.0 LLPD.
 Increasing the milk sales capacity.
 Introduction of bulk milk cooler (BMC) concept at the village level at the
cost of 3 crores.

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14
 MADURAI DISTRICT CO-OPERATIVE MILK
PRODUCERS’ UNION LTD.,

- A PROFILE

Madurai Aavin Dairy was established in the year 1967. It was inaugurated
by S.M.T. Indira Gandhi prime minister of India on 7th January 1967 under the
president ship of bakthavastsalam B.A.,B.L., & chief minister of government of
maduras.

Administration

 Started as milk project-1967

 Converted as TN DDC-1974
 Converted as co-operative -1983
 Converted as MDCMPU- 1988

Co-operation

The term co-operative societies act 1982 section 4(©) ”co-operative is a

society which has object the promotion of the economic interests of its member in
accordance with co-operative principles”.

Co-operation Dairying

Milk is accepted as a essential part of balanced diet. It is a nutrivitive&

projective food. Any person from children to old aged people can consume milk
safely balanced diet for an adult. India should include 10 ounces of milk per day
as per the suggestion of the Indian council of medical research. Milk production &
agricultural become inseparable parts of life in rural areas, efforts are taken by
individual & co-operative to increase the production of milk.

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Need for Co-operation

Milk is produced by small former living in rural areas. They face a number
of problems which can be solved by co-operative efforts in the following ways.

 Small formers have one or two or milk animals each. So their

production milk has carried a small scale. By availing co-operative
loans with subsidies, every small former can gradually keep many
manual animals. This may result increases, production of milk which
will benefit such formers as well as other milk consumers. A balanced
diet for & adult Indian should include 100 unces (milk per day as per).

 Private milk vendors or milk contractor give low price to me the milk
produced. But co-operative society assures responsible price for the
milk.

 Small former cannot preserve surplus milk & it may result in loss.
When a former become member of a milk producers society there is no
botheration about the surplus milk with free transport facilities, the
milk is collected by societies & send to milk unions.

Awards

 It awarded as the best milk co-operative union in Tamil Nadu for the year
2005 to 2008.

 Awarded in the all India No.1. union in terms of growth in sale of milk, in
national dairy development board (NDDB) annual report.

 National productivity council of India gave productivity award to Madurai

district co-operative milk producer union Ltd in year 2006.

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Special Achievements

 The Nucleus Jerseyand Stud Farm has been granted the ISO 9002:1994
Quality System Certification by the Bureau of Indian Standards vide
License No. QSC/L-008958 with effect from 25-02-2002. Now, the
Quality System Certification of ISO 9002:1994 has been upgraded to
ISO: 9001:2000.

 This is the second Farm in Indiato obtain ISO Certification.

 Among the 13 Farms maintained by the Co-operatives in India, this

Farm is the first one to get ISO 9002:1994 Certification.

 Even in Tamil Nadu this is the only Farm with ISO 9002:1994
Certification.

 Out of about 65 semen stations evaluated all over India, The Nucleus
Jersey Farm was awarded “A” GRADE by the Government of India
based on the evaluation carried out by the Central Monitoring Unit
constituted by the Department of Animal Husbandry and Dairying,
Government of India. Only 7 Semen Stations have obtained “A” Grade
in the country.

 The data available in this Farm on semen production, Animal

maintenance, Fodder production, trials on new fodder varieties etc are
utilized by Research Scholars and Post-graduate students of Tamil
Nadu Veterinary and AnimalSciencesUniversityand Tamil
NaduAgriculturalUniversity.

 For the Milk Producers of Dairy Co-operative Societies of various

Districts and for the under graduate students of Veterinary Colleges
this Farm is highly educative.
 Many Farmer/Producers visit this farm and seek guidance to start small
dairy farms of their own at their places.

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 THREE-TIER-STRCTURE

Aavin
(Laboratory

Village Level District Level Union State Level Federation

SocietyvillVi(Laborato
The village level society is called as “Milk products co-operative society”
which procedures milk from the former of village and send it to the district level
union. Madurai union has 629 societies of village level.

Tamil Nadu State has 17 union and function of diary development. The name of
the union were as follows:

 Kanyakumari
 Thirunelveli
 Virudhunagar
 Madurai
 Sivagangai
 Karaikudi
 Dindugal
 Erode
 Ooty
 Salam
 Trichy
 Tanjaur
 Vilupuram
 Sollinganallur
 Kanchipuram
 Coimbatore
 Puthukottai

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District Level

“Madurai District Co-Operative Milk Products Union Limited”. They get

from the societies which are chilled processed and distributed to public through
tankers and milk both outlets.

The state level federation is “Tamil Nadu Co-Operative Milk Products

Federation”. They themselves determine their policies products and of prices to
their products.

National Level

National Diary Development Board (NDDB) head office in Madurai.

S.NO STATE NAME

1 Tamil Nadu Aavin
2 Kerala Milma
3 Karnataka Nandhini
4 Andra Vijaya

Objectives of the Organization

 The main objective of the organization of the organization is to give good

remunerative price to the milk producing farmers of the Madurai and
Theni District.

 To supply good quality milk to the consumers of this Madurai city at a

reasonable price.

 Assured, round the year procurement of milk from the farmer members of
this union.

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 ORGANIZATIONALSTRUCTURE

General Manager

DGM DGM DGM AGM AGM AGM

(Proc) (Prod) (Mkg) (Admn) (QC) (Fin)

AGM AGM Manager Manager Manager

(P & I) (Mkg) (PERS) (QC) (Fin)

AGM AGM AGM Dy. Manager Dy. Dy.

(Process) (PP) (Engg) (PERS) Manager Manager
(QC) (Fin)
Manager Manager
Manager (PP) (Engg)
(P & l)
Manager
(Process) Manager
(Mkg)
Dy. Manager Dy. Manager
(P & l) (Engg)

Dy. Manager Dy. Manager

(Process) (Engg)

Dy. Manager
(Mkg)

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 PURCHASE DEPARTMENT

The Purchase Department made purchase requisition at the time of low rate
and made expenditure in purchasing, example is purchase of machinery, furniture,
etc.

Role

For the purchase of Rs 500 and below the final decision is with purchase
department. For Rs 5000 above made tender for the purchase Rs 5000 to 1000,000
lakhs is the district level tender.1000,000 to 200,000,000 is the national level
tender. The tender period is 15 working days.

Machinery

The Madurai District Co-Operative Milk Production Union Ltd machinery

purchased in the year of 1974. Monthly stores the demand the purchase section is
the convenience purchase section.

PURCHASE DEPARTMENT

PURCHASE MANGER

SUPERINTENDENT

ASSISTANT ASSISTANT ASSISTANT

MANAGER MANAGER MANAGER

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 PRODUCTION DEPARTMENT

The Production Department is divided into different models based on type of

process. production process involves Production Planning, Operation and Control.

Objectives

 To maintain good housing keeping.

 To deliver the finished product within the time.

Functions

 To supervise all the sub division of diary concerning with skimming of

milks its maintenance and also production of milk powder, ghee,
butter.

 To maintain all the machineries of dairy sector.

 To plan for the preparation of by products depending on the level of

surplus milk.

PROCESS OF MILK

 Chilling

The chilling of milk is the first step in the processing of raw milk. The
milk is chilled at a temperature, which is below 5 degree. This is done to cheek
the growth of micro organization and prevent the milk from deterioration.

 Standardization

The second step in processing is standardization of milk refuse to the quality

adjustment. That is raising or lowing of fats or solid non fat percentage of milk to
desired levels. The societies have to confirm to the legal and other requirement

22
prescribed in this regard. This standardization makes aavin milk as high quality
milk and creates demand among the people.

 Homogenization

Homogenization is done to subdivide the fat globules into smaller particles.

Fat can’t be separated from homogenization milk. The density of milk increase
due to this process.

 Pasteurization

The term pasteurization has been introduced by Louis Pasteur France, in

1960. He demonstrated that helping wine to kill the spoilage organizing and
helped in this preservation. The application of his process gave rise to the raw
term pasteurization. This process helps to kill the bacteria presented in the milk
.pasteurization refers that boiling the milk in high temperature to 72ºC -20ºC.

 Powder Plant

In powder plant the milk powder is obtained by the removal of water from
the milk by heat. A steam passes through certain pipe the milk passes through
another pipe. Now the steam evaporates the water present in the milk and gives
powder in one pipe. This powder is stored in large container with certain
preservation. This capacity of powder plant is 20 toners.

 Products produced by Aavin

 Milk
 Cow Milks
 Standardized Milk
 Premium Milk
 Aavin Gold Milk
 Full Cream Milk
 Butter Milk

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  Curd
 Milk Beda
 Ghee
 Milk Powder
 Mysore Pa
 Flavored Milk
 Milk

The milk contains water, fat, protein, lactose and calcium. The milk produced
in different verities. They are cow milk, premium milk, aavin milk, full cream
milk.

 Cow Milk

In this milk the content of fat is 3.5% and the SNF content is 8.5% this
type of milk is suitable for all aged person. Now the cow milk is supplied all over
the area.

 Standardized Milk

In this milk the content of fat is 4.5% and the other proteins, SNF content
is 8.5% this type of milk is more suitable for the children and even it is beneficial
to the patients and the infant.

 Premium Milk

In this milk the content of fat is 4.5% and the SNF content is about 8.5%
this type of milk is suitable and good for health.

 Aavin Gold Milk

In this milk the content of the fat is 5% and the SNF is 9% this type of
milk good for health.

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25
 Full Cream Milk

In this milk the content of fat is 6% and SNF is 9%. This milk contains full
of fat.

 Butter Milk

The butter milk is packed in 200ml packets. The butter milk has the higher
demand in the market. This is because of the quality of the product.

 Curd

The curd is produced by heating the milk at 100ºC and then cooled at 40ºC
for an hour. The curd is packed in 250ml pack.

 Milk Beda

The milk beda is produced by heating and skiving the 50 liters of milk of
milk at 90ºC constantly. There are two milk beda preparing machines.

 Ghee

Ghee is produced by using varieties of machines. There is ghee melting

tank and boilers, etc., there are two ghee boilers. It is prepared by using steam in
the ghee boilers. The capacity of ghee boiler machine is 1500kg.

 Milk Powder

This powder is prepared by steaming the skimmed milk with various

temperatures. Due to this, the water content of the milk is converted into powder.

 Mysore Pa

The Mysore Pa is produced by heating sugar, water, Bengal gram powder are
mixing this product.

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Example:

1kg - Bengal gram powder

1 half lit - Water

4and half - Sugar

5 kg - Ghee

 Flavored Milk

The flavored milk contains 1.5% of fat and SNF 9%.The different flavor in
this flavored milk. They are chocolate, pineapple, badam. The production per day
is 1000 bottles. It produced by heating 40 liters of milk with 5kg of sugar 20
minutes.

PRICE LIST

SPL/R
PRODUC ATE
WEIGHT FAT SNF RATE
T PER
LITRE

COW 250ML 3.5 8.5 8.00 -

MILK 500ML 3.5 8.5 15.00 31.00

AAVIN
500ML 9.0 9.0 17.00 35.00
GOLD

FULL
CREAM 1 LITRE 6.0 9.0 35.00 36.00
MILK

CURD 25.4ML 1.5 9.0 9.00 37.00

27
 PRODUCTION PROCESS

SOCIETIES/ CHILLING CENTER

RAW MILK

CHILLING SURPLUS MILK

PROCESSING MILK SEPARATION

STANDARDIZATION

STORING
CREAM SKIM

PACKING
POWDER

BUTTER GHEE
STORING

STORING

MARKET PACKING

28
 PROCUREMENT DEPARTMENT

Procurement and input of milk is the first process in every dairy. In

Madurai aavin procurement of milk will brought through societies. Some peoples
those who have the animal they form a group. In that few peoples are selected for
society.

There are five milk procurement teams. They are

 Theni
 Thirumangalam
 Melur
 Sakkimangalam
 Chellampatti

FUNCTIONS OF PROCUREMENT AND INPUT

 To implement plan for product of milk.

 To establish new society.
 To provide emergency treatment for cows.
 Provide loans for cows and give maintains cost.
 Planning to give training centre.
 To give treatment for animals and give artificial insemination system.

Procurement of Milk

 Procurement of milk from member is base on quality for milk.

 Milk procurement in collection of societies.

The collection of milk societies transport by (Deppovan, Lorry) going on to

Madurai aavin placed.

29
 Melur and Theni 800 society. Self the 535 Madurai and Theni district
collector the milk procured in the morning and evening the collector centre. Bulk
milk the long distance the area bridge use me the check loan danker is installed.
The total centre 23 in 16 centre already collection 7 centre new open the milk
collection center.

The Treatment by Vetnery Doctor to the Cow

Weekly once the cow checked by a doctor’s free treatment for the animal.

 There are 50 emergency doctors in input section.

 There are 32000 cow are injected for a year.

Type of Cow

 Colsiongreasion
 Gercy
 Sindy
 Kandai
 Saprapasser

Working Time of Aavin Depots Parlors

 The aavin deppo and parlors working time details are given below
o Aavin deppo: 5.00 AM to 7.00 AM and 1.00 PM to 3.00 PM
o Aavin parlors: 5.00 AM to 9.00 AM
 The produced milk is for its fat and solid non fat % content.
 Base on the quality produced and on the quality (fat and SNF %) payment
to the procures are made.

30
 MILK PROCUREMENT METHOD

Milk Producer

Village Dairies

Milk Collection Collection, Weighting and Cooling

Transportation Transportation

Chilling Centre Processing and Packaging Plant

Marketing and Distribution

Consumer

31
 QUALITY CONTROL DEPARTMENT

The Quality Control laboratory is equipped to analyze and evaluate the

quality of raw milk. The fat percentage and quality of milk are checked by them.
They fill the butroymetre with 10ml surpluric acid, 10ml milk and 1m amalile
alcohol to find out the fat level. They use lactometer to know the density of milk.
Thus, it improves the quality of milk.

Functions

 To improve the quality of the milk.

 To provide quality milk to the consumers.
 To supervise the quality of milk and its by-products
 To inform about the quality of milk to storage department.

Role of Quality Control Lab

 The primary role is to test the quality of milk by individual cane.

 To describe the payment of the milk on basis of quality.
 Once after the inspections and the instructions given by the quality control
lab the milk is packed.
 To certify the by product and providing agmark labeling for ghee.

MILK

Water 87% solids 13%

Fat Protein Non- Fat Protein

32
The major constituent’s of milk is water, fat, protein, lactose, ash, mineral water.
The minor constituents are phospholipids, steroids, vitamins, enzymes, pigments
etc.

The “true” constituents are milk say that milk fat, case in lactose.

Determine the FAT, SNF from the Milk

Take 10.75ml of milk into a butyrometer and then added into 10ml of
sulphuric acid (H2SO4). 1 ml of amyl alcohol added into this mixture. Shake well
and it centrifuge for 5 to 10min. Observe and readout the amount of fat as
percentage.

Richmlxld’s Formula

Lactometer reading at 29 ºC
CL
= CLR= Corrected Lactometer Reading
R
4

Lactometer reading at 29 ºC = 30.0

30.0
CRL= = 7.50
4

Fat: 5.5 - 2.0 = 3.5

Amount of SNF = CLR at 29 ºC +Constant+ (Constant* 2F) = 7.5+0.36+0.72 = 8.58

Fat & SNF = 3.5 & 8.58

33
QUALITY CONTROL DEPARTMENT

GENERAL MANAGER

ASSISTANT GENERAL
MANAGER

MANAGER

DEPARTMENT

LAB ASSISTANTS

MAZDOORS

34
 MARKETING DEPARTMENT

Marketing is a social and managerial process by which individuals and groups

obtain what they need or want through creating, offering and exchanging
products. It is the important function of market department.

Marketing department is the brain of organization. It is the process of

planning, executing, pricing, distribution of goods and services to exchanging that
satisfy individual and organization goods. The simple word is the art of selling
product in the market is called marketing.

Marketing process brings new varieties and quality goods to customer for the
benefit and usefulness of customers. They changing their ownership of goods and
changing time and place of consumption.

Functions

 Planning and analyzing the sales report to increase the sales.

 Marketing an arrangement of vehicle to cover the local areas.
 Allocate the depots and parlous.

Objectives

 To meet the customer requirement.

 To bring more business to concerns.
 To grow alone with the customer.
 To bring profitability.

The marketing is routine work and the amount which is collected every day is
remitted to bank by the zonal office.

35
 MARKETINGDEPARTMENT

ZONAL OFFICER

GENERAL MANAGER

Marketing Manager I Marketing Manager II Executive

Zonal Officer

Zonal office collects order from the customer and transports it to the main
office. Then the main office prepares the supply for sale and further management
has to distribute commodities in right time.

Types of Zonal Office

Zonal Office

Urban Market Rural Market

Urban

 Anna Nagar
 Arapalayam
 B.B. Kulam
 Central
 Palanganatham

36
Rural

 Thirumangalam
 Theni
 Melur

Marketing activities in Zonal Office

The Zonal office plays a vital role in sales activities and collection activities.

Card Sales

Maintenance of cash and carry system.

Bank Deposits

Preparation of stock details on card sales. Records the attendance of every

worker and cash book maintenance.

Functions of Marketing Department

 To arrange to sales of products in local areas and other states.

 Analyzed the sale of milk periodically sales and plan to sell milk.
 Arranging vehicles to cover local area.
 Advertise the products by union.
 Solving grievances customers.

Functions of Zonal Office

 Cash collection from the concessionaries and retailers.

 Cash sales throughout the month of different dates regarding the
customers.
 Supervising the deposits under their control.
 Spot sales if the card is from the government organization.

37
Indent Section

 Issuing gate box to the incoming and outgoing vehicles.

 Maintaining an account that deals with the intend quantity and sales.
Quantity of milk including special order milk.
 Supplying the milk according to their routes.
 To send the record of quantity of milk required in category wise to the
production department.

Milk cards are sold to consumer against the payment of cost of milk for a
month in advance Rs. 1.50 per liter given as discount of card holders. Monthly
card scheme is available for standardized milk and premium milk and toned milk.

Location of Milk Marketing Zonal Offices and Contact Telephone Nos

 Anna Nagar : 2650561 Ext. 155

 Bibikulam :   2653096
 Central :  2342482
 Palanganatham :  2601495
 Arapalayam :   2604572

Marketing Department Details

 Total Number of Milk Selling Booths : 32

 Total Number of Parlours : 20
 Total Number of Milk Marketing Zones : 5
 Types of milk sold are toned milk, standardized milk and premium milk
 Type of milk products are butter, ghee, skim milk powder, peda, mysore
pa, flavored milk.
 Average milk sales per day: 76000 liters.
 Total no of city milk distribution routes : 15
 Total no of rural milk distribution routes : 5

38
Marketing Mix

Product

S.N
Class of Milk FAT SNF
o

1 COW MILK 3.5% 8.5%

2 PREMIUM MILK 4.5% 8.5%

3 AAVIN GOLD MILK 5% 9%

4 STANDARDIZED MILK 3.5% 8.5%

5 FULL CREAM MILK 6% 9%

By products

 The surplus milk other than need for sachet milk is separated into cream
and skimmed milk.
 The cream is converted into butter, ghee, curd, buttermilk and flavored
milk.
 The skimmed milk is converted as milk powder (i.e.) skim milk powder. It
is useful for old age people, small children.

Price

Price is fixed, based on the fat, protein content of milk, weight and quality, on
the basis of added quantity. The central and state government fixes the price
according to the demand and product cost basis.

APPOINTMENT OF CONCESSIONARIES

 Dropping Point Concessionaries

39
 It means concessionaries dropping point (DPC) by paying Rs 1000/- as
security deposit. Milk will be supplied at their door steps as specified were
depots/parlors do no exit. Aavin on remitting additional security deposit of Rs
200/-. Dropping point concessionaries are not entitled to sales card milk.

 Retailers

Small petty shop owners (or) those who own shop appointed retail selling
agents. The security deposit is Rs 1000/-. These are also eligible to sell by
products of aavin. Payment of Rs 2000/- additionally as security deposit.

 Depots

8’x 6’ (or) 4’x 4’ size depots are installed at various places in the city. This
does not have electricity connection. Concessionaries are appointed based on their
sales potential. The depots security deposit is Rs 5000/-

 Parlors

Parlors are special type structure of 12’x 9’ feet size. The owned by Aavin
all facility such as electricity, refrigerators and deep freezers. The security deposit
of Rs 5000/- has to be paid.

 Institutions

It means something refers to college, schools and government hospital etc.

Madurai aavin supplies the milk. There is no payment of security deposit and are
not commission as such other intermediaries. In credit basis the milk payment to
be made is on the basis of MRP+ Rs 0.50 paise per liter.

 Cash Book

The amount and name of the goods / commodities sold is recorded in the
cash book. The parlor sales are also separately maintained. But this sales figure
also included in cash book.

40
41
 Card Sales

Advance money paid for product and 50 paise reduction for the product.

 Distribution of Milk

There are 63 distribution routes. In that 52 routes belong to city

distribution and 11 routes rural distribution. This work is regular by supply milk
institutions.

 City Distribution

In that 37 routes are in the duty of first delivery and 15 routes are in the
duty of second delivery and night delivery.

 Rural Distribution

The rent for rural distribution is based on kilometer basis and there are 11
rural distribution routes. In that 8 are in the work of first delivery and 3 are in the
work of day delivery.

Marketing Wind

Particular Fat % SNF % Total Qty. Sold (LPD)

HSM 500 4.5 8.5 20259.00

ML

PM 500 ML 4.5 9.0 37582.00

CM 250 ML 3.5 8.5 41152.75

CM 500 ML 3.5 8.5 57314.00

PM 1000 4.5 9.0 35441.00

TOTAL 191452.25

42
43
 FINANCE DEPARTMENT

Finance Department is necessary to promote a business purchase of fixed

assets, buy raw material, produce goods and market them. Every organization
activities require to finance.

Objectives

 To co-ordinate all the departments and to maintain its records.

 To take care of all payment activities.

Functions

 To monitor the financial position.

 To prepare annual income and expenditure, profit and loss a/c, balance
sheet, etc. to be submitted to the administration section.
 To collect all section information regarding finance.
 To distribute the milk payment list to all section.
 To maintain the milk and by- products, sales income a/c.

Sections of Finance Departments

 Account sections
 Payment sections
 Pay bill sections
 Marketing sections
 Auditing sections
 Cash sections

44
Inter-department Relations

All the department of aavin is interconnected to the finance department

for their payments, fund allocations etc. Finance department also deals with any
changes regarding sales and income tax.

Assets

The assets of Aavin Union falls under two categories.

 Fixed Assets
 Current Assets.

 Fixed Assets

Land, Building, Plant and Machinery, Computer and Accessories, Vehicles,

Office Equipments, Furniture and Fittings, Milk Depots and Parlors.

 Current Assets

Cash and Bank balances, Insurance claims, etc.

The books maintained in this department are;

 Cash Book
 Ledger
 Balance Sheet

Every activity of the finance section is done, according to the co-operative act and
rules.

Finance Control of Department

 Company Auditors
 Statutory Auditors

45
Company Auditors

The company auditors look after preparation of balance sheet of the

concern. They also pre-audit the day-to-day activities.

Statutory Auditors

The audit work is to prepare all accounts of the union and prepare final
audit memorandum and submit it to controlling officer. They submit this in
association meeting.

FINANCE DEPARTMENT

GENERAL MANAGER

DEPUTY MANAGER ACCOUNTS

DEPUTY MANAGER

EXECUTIVE

JUNIOR EXECUTIVE

OFFICER SYSTEM

46
 ADMINISTRATIVE DEPARTMENT

Administration is to control and monitor all the function and activities.

The disciplinary action is taken by this department. It maintains smooth
relationship of management and employees.

The various function included in human resource department are

formulation of developing human resource plan, policies, developing human
resource plan, recruitment, selection, training and development, promotion,
demotion and performance appraisal.

Function

 To look over the welfare of the workers.

 Fixation of salary, increments for daily routine workers.

 Prepare agenda for the meeting to monitor their annual income increment.

 Supply free milk to the workers.

 Fixes the day-to-day activities of dairy.

 The union board responsible for the overall financial sanction and policy
decision on procurement and meeting.

 Personnel Department

The personnel department plays a crucial role in every organization.

 Manpower Planning

In manpower planning future manpower requirement of the company is

analyzed. Here each department heads will submit the manpower requirement of

47
the respective departments to the top management. The top management will go
through the proposal and give approval for future requirement.

48
 Recruitment

In this process the personnel department will appoint new employees

below the common category by calling candidates through employment exchange
by the following useful recruitment procedure regulated by government.

 Training

Training program is organized by the Productivity Council (State Control),

Co-Operation Training Institute, Training Center which is run by the National
Diary Development Board.

 Time duration of Training

 Village diary co-operative secretary training-30 days.

 Artificial inseminations first aid-30 days.

 Milk tester-5 days.

 Management committee members – 2 months.

 Workers nearly – 6 months.

 Ambition

 To promote village level farmer co-operative producers members by

collecting the milk from them in remunerative price.

 To sell the milk and it by- products to the consumer with reasonable price
and quality.

WORKERS AND WORKING HOURS

 Office Hours

49
 Administrative employee works between 10.0 AM – 5.45 PM. Lunch
interval is between 1.30 PM- 2.00 PM. Weekly five days (i.e.) Monday- Friday is
the administrative working hours.

50
 Factory Hours

Factory functions 24 hours throughout the year.

1 Shift 6 AM- 2 PM

2 Shift 2 PM-10 PM

3 Shift 10 PM-2 AM

The factory employees covered the leave rules under the factory act.

 Canteen

Meals, Tiffin and Tea are supplied to the employee at subsidized rate by
the union canteen.

 Medical Allowance

Medical allowance of the each employee is Rs. 125 per month for the
medical emergency of the employees.

 Workmen’s Compensation

The workmen’s compensation is given to the workers for any accidents as

the per compensations Act 1923.

 Insurance

Every employee is insured as they are human assets of the any firm.
Productions Department, Plant and Machinery, Finished Products, Transport
Vehicles, each and every goods in transit are insured.

 Leave

51
 The workers can take 15 days causal leave per year. Medical leave rate is
12 days per year subjected to maximum of 60 days.

 Way of Communication

Wire communication and written communication is there. Mostly written

communication is followed in Aavin Union.

 Other Facilities

Workers are provided by other facilities such as Restrooms, Chairs, Fans,

Several Windows for Lighting, Drinking Water, latrines, etc. For emergency
purpose fire extinguishers and alarms are provided.

ADMINISTRATION DEPARTMENT

VS
GENERAL MANAGER

DEPARTMENT MANAGER

ASSISTANCE MANAGER

SUPERVISING STAFF

OFFICE TECHNICIAN PROCURMENT MARKETING

STAFF STAFF

OFFICE ASSISTANCE MANZDOORS

52
 OBSERVATIONS

 Total manufacturing and factory utilization is taking place in a single

industry. When compare to other competitor’s like Arokya, they
manufacture the milk products in one place other activities like packing,
selling is taking place at other location.

 Aavin is the market leader in Madurai. They have customer contribution of

68% in market sales.

 The recruitment process is too slow, when compare to other competitor’s

like Arokya. They recruit people in day to day needed. But in Aavin they
can able to recruit people even they are one salesman’s. when government
is open for tender.

 Aavin follow pull marketing strategy and they can change that. And they
can follow push strategy to improve the sales.

53
 CONCLUSION

In this training the trainee got experience of various departments like

Purchase Department, Production Department, Procurement Department, Quality
Control Department, Marketing Department, Finance Department and
Administrative Department. It prefers customers’ loyalty and provides quality to
their customers. The trainee have gained practical experience by visualizing the
operations and activities in the company.

54