INTERNSHIP REPORT

HALEEB FOODS LIMITED

INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

BY

MUDASSAR PERVAIZL1F02BBIT2091

FACULITY OF MANAGEMENT SCIENCESUNIVERSITY OF CENTRAL PUNJAB

FALL SEMESTER 2006

SAMPLE ASSESSMENT PAGE 

INTERNSHIP REPORT

(HALEEB FOODS LIMITED)

Internship or Project report submitted in partial fulfillmentof the requirements for the degree of

 BACHELOR OF BUSINESS ADMINISTRATION

By

 MUDASSAR PERVAIZ

L1F02BBIT2091

The Internship report of Mudassar Pervaizis approved:

Prof.Kashif Ud Din Khan Advisor Research Project Cell.

Prof. Abdul Rauf Co-Assessor Research Project Cell

Synopsis

I was sent to Haleeb Foods Limited to spend six weeks for internship by Punjab College

of Business Administration, which was permitted by Haleeb Foods limited. Haleeb

Foods limited is one of the biggest dairy foods producing company.

Haleeb Foods Limited receives milk at plant after complete analysis and recommended

OK by the reception lab. This milk is stored in silos after cooling <10c. Milk from silos is

pasteurized as per requirement and after cream separation. (For Skimz milk)

Milk is then mixed with powered milk and stabilizers according to recipe and then sent to

UHT section for high temperature treatment. After UHT milk is cold up to room

temperature and then packed in tetra pack section sealed, stamped and stored.

Cream separated is pasteurized and then changed to butter in butter churner. In butter

churner low temperature is provided by adding ice in churner, with continuous agitation

and revolving of churner. Laban (lassi) formed is separated due to density and drained.

Butter is packed and stored or marketed as per requirement.

For desi ghee butter from store is sent to melter, in melter temperature is increased with

the help of steam jackets. Butter changed to desi ghee.

And then sent to process tank in which 4000 kg level and temperature is maintained at

90c by steam, vacuum is produced by steam jet. Here ghee is deodorized; moisture is

removed and then filtered in plate and frame filter press. Here sludge is removed and desi

ghee from all impurities is sent to product tank, packed and stored.

To manufacture plain yogurt and raita, pasteurized milk is sent to yogurt section.

Incubation room provides proper temperature to eliminate all the bacteria. To prepare

raita yogurt formed in tanks and then mixing is made according to the requirement and

packed, stored and sealed.

For juices and other ingredients are mixed and blend to stirred tank in which level is

maintained and continuously stirred. After 10 minute sample is tested and acidity is

maintained at temperature <10. After standardization juice is either pasteurized or sent to

UHT section as per requirement. In UHT juice is treated at 95c for 12 sec. Then packed

and stored. For pasteurization juice is sent to balance tank and passed to pasteurizer at

95c and in holding tubes for 16 seconds. From holding tubes it return back to chiller

where temperature is dropped to 30-35c and then packing in tetra pack section, then

stored.

Acknowledgement

We have the pearl of our eyes to admire blessing of the compassionate and omnipotent

because the words are bound, knowledge is limited and time is short to express His

dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with

potential and ability to complete the present training and make a material contribution

towards the deep oceans of knowledge.

First we avail this opportunity to bow our head before ALLAH almighty in humility who

given us the wisdom and perseverance for completing this piece of six weeks internship.

We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch I feel

highly privilege to ascribe the most and ever burning flame of my gratitude and deep

scene of devotion to the Prof. Kashif-uh-Din and Haleeb Foods Limited on providing

me the opportunity to have an internship on this leading food production unit.

It would honor for me to pay gratitude to Mr. Akbar Ali, production manager haleeb

foods limited, on his encouragement and providing me the facility to learn. I am highly

thankful to Mr.Atif Iqbal, shift in charge, and his co-fellow Mr. Ali on proper guidance

and encouragement. I am also grateful to Mr. Arshad Bhatti, senior manager of research

and development department, Mrs. Qudsia Bano, senior manager of quality assurance

department, Mr. Jawad Saleem, brand manager of Haleeb milk and cold chilling

products and special thanks to Mr. Waqar Assistant Brand Manager for their nice and

co-operative behavior and reading to guide attitude during my training.

I am also obliged to all the staff and workers of Haleeb foods limited of their co-operative

behavior.

No acknowledgement could cover adequately express my obligations to my dear father

and mother who ever remembered me in their prayers and supported me in all aspects

along awful venues of me academic achievements.

TABLE OF CONTENT

SAMPLE ASSESSMENT PAGE........................................................................................2INTERNSHIP REPORT......................................................................................................2(HALEEB FOODS LIMITED)...........................................................................................2Company History.................................................................................................................9Company Profile................................................................................................................11Company Policy.................................................................................................................12PROFILE OF THE INDUSTRY.......................................................................................15

Market share..............................................................................................................20Milk consumption.......................................................................................................20Consumption estimates for milk and dairy products in 1999–2000 are as follows:..20(Annexure 10)............................................................................................................20

Future demand for milk and dairy products..................................................................21Self-collection................................................................................................................21Contract collection.........................................................................................................22Milk procurement..........................................................................................................23

Reception of Milk..............................................................................................................23Reception Laboratory........................................................................................................23

Reception Lab Activities................................................................................................24Sampling of Raw Milk....................................................................................................25

Detail About reception Lab...............................................................................................26In reception lab following analysis are performed and their purpose given:....................26HALEEB PLANT..............................................................................................................32PASTEURIZATION SECTION.......................................................................................33

UHT PLANT.................................................................................................................36Bottling plant.....................................................................................................................36

Blow Molding Machine..................................................................................................36Filling;...........................................................................................................................37Powder Plant..................................................................................................................39

BUTTER SECTION..........................................................................................................41Packaging:.....................................................................................................................43Desi ghee is packed in plastic pouch and tin (1 kg and 5 kg)........................................43UHT CREAM................................................................................................................43HONEY CREAM............................................................................................................43YOGURT SECTION.....................................................................................................43

HALEEB LABBAN..........................................................................................................45PREPARATION OF JUICES............................................................................................46PLE SECTION..................................................................................................................49

iv) Tray magazine:.........................................................................................................50

v) Tray folder:................................................................................................................50WASTE WATER TREATMENT PLANT.......................................................................55

SWOT Analysis of PAKISTAN Dairy Industry.......................................................63

Company History

Chaudhry Dairies limited was incorporated in 1984 as a Public limited Company. The

head office is situated at 135 Ferozepur Road; Lahore while the plant is situated at 62 km

Lahore-Multan Road, Bhai Pharu. Commercial production started in 1986 & the

company reached its breakeven in the year 1992. In the 1993 milk powder was

introduced in the market in the bulk form.

Haleeb Foods Limited is one of the fastest growing packaged food companies in Pakistan

with an annual turn over rate of 7.2 Billion. It was incorporated on 9th April 1984, while

it’s started its commercial production in July 1987. Within a short span of just 2 decades,

the company is operating in 5 businesses segments; UHT milk, Cream, Juices, Powdered

milk & Butter oil. Haleeb Foods has achieved undisputed leadership in the liquid

packaged milk category with a market share of more then 56%. The company has a very

strong portfolio consisting of leading National / International Brands; Haleeb, Candia,

Dairy Queen, N’rish, Skimz & Tropico.

Haleeb Foods is well known for it “first mover” initiatives in product & packaging

innovations. The company believes in using leading edge processing & packaging

technologies to meet consumer’s expectation of hygienic & high quality food products.

Haleeb Foods employs the broadest range of packaging formats; Tetra Brick, Fino,

Classic & Foods grade plastic bottles for the convenience of consumer. The company has

one of the largest nationwide distribution networks with the help of 1100 distributors/

dealers delivering high quality products even in remote areas of Pakistan. Moreover, it

has tapped opportunities in export markets including Korea, Hong Kong, Bangladesh,

Afghanistan & the central Asian states.

Haleeb Foods has highly committed & professional management team with a progressive

operating style & a good blend of experience & vigor. The company can claim to be the

one of the very few Pakistani organization which are truly following the model adopted

by the globally successful corporations, which clearly defined rules for the share holders

& the management team.

In order to provide the best quality products to its consumer, Haleeb Foods has a highly

developed & integrated supply chain infra structure. It has heavily invested in a vast

network of company operated milk collection centers. Furthermore, a new production

facility is being developed in Rahim Yar Khan, which is an area rich in milk collection.

The company founded as Chaudhry Dairies LTD in 1984, has now changed its name to

Haleeb Foods LTD in 2004. The name has changed but the company is resolve to bring

the best food to its consumer remain unchanged. Today, Haleeb Foods takes pride in

being a model National organization delivering International quality products & higher

value for money to its consumer. The management team at Haleeb Foods strongly

Believes that Pakistan offers tremendous potential for growth in the food business due to

large consumer base, high acceptance of packaged food & growing middle class

consumer segment

Company Profile

Plant Distance from Lahore 62 KM

Company Established 1984

Plant Installation 1985

Plant Trials May, 1986

Commercial Production May 21, 1986

Affiliation with CCF-Holland 1989-91

Power Plant Installation 1992

Breakeven Point Achieved 1994

TQM System Established 1994

Achieved #1 Position in UHT milk 1996

ISO-9002 Certification 1997

ISO-9001: 2000 Certification March 2003

HACCP June 2003

ISO-14001 (Certification Recommendation) August 2004

Bottling Plant Installation 1998-99

Total Land 81,000 Sqr.Mtr.

Plant Covered Area 12,000 Sqr.Mtr.

Colony Covered Area 19,600 Sqr.Mtr.

Admin Block Covered Area 600 Sqr.Mtr

All this and more makes Haleeb Food Pakistan No 1 and fastest packaged growing food

company. As of fiscal 2005, its annual turn over is Rs. 7.2 billion.

(Annexure 1)

Company Policy

We are committed:

1) Build branded food business to improve the quality of life by offering tasty,Safe, hygienically processed, affordable, highly nutritional food products through environment friendly processes to our customer while maximizing stake holders’ value.

2) Meet the requirements of all the relevant legislation & regulation related toCustomer satisfaction & safety, environment& other applicable laws etc. 3) To prevent pollution through controlling level of harmful emission, effluents & other wastes.

4) Contribute to the safe & the healthy environment for our country.

5) Promote mutual trust with customers, suppliers, employs, shareholder &Community.

6) Provide all the necessary resources for the continual improvement in quality, safety of our products, process & environment.

COMPANY VALUES Accountability Team Work Enterprise Empowerment Trust

COMPANY VISION. Most innovative & fastest growing food company offering

Products enjoyed in “every home every day”.

PRODUCT RANGE

Haleeb Foods Limited is producing the quality products as per the standards of ISO &

HACCP. Along with the quality products, Haleeb is also producing the wide range of the

products including milk based products, juices, powder etc.

The products can be divided into following ways:

Consumer products

Products, which are branded and are sold to the end consumer through a distribution

chain in the packaged from as produced by the company. Consumer products are sold

under following brand names:

1) Haleeb (Umbrella brand)

i. Haleeb UHT Milk

ii. Haleeb UHT Cream

iii. Haleeb Yogurt

iv. Dairy Queen

v. Haleeb Gold

vi. Haleeb Good Day Pure Juices (Mango, Orange, Apple, Mix, Pineapple,

Red grape)

vii. N’rish (Instant Full Cream Powder Milk)

viii. Asli Desi Ghee

ix. Haleeb Fun Day Juice Drinks

x. Haleeb Laban (Saltish & sweetened)

xi. Haleeb Tea Mix (Plain & Cardamom)

2) Candia

i. Candia Candy Up Flavored Milk (Brick)

ii. Candia Bottles

iii. Candia Liquid Skimz

iv. Candia UHT Milk (Brick)

3) Tropico

i. Tropico Fruit Drink (Mango, Apple, Mix)

Industrial Products

Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal use, it

is also sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was introduced

in 1996. Both products are sold in 25 kg bags.

Excess milk fat is sold unprocessed to makers of butter, ice cream and sweeteners, or at

request is turned into ghee.

Export

CDL started exporting its products in 1999 and has done business with customers in

Korea, Afghanistan and china, United Kingdom.

PROFILE OF THE INDUSTRY

World milk production

Two thirds of total world milk is produced by Brazil, India, Pakistan, Poland, Russian

Federation, USA, and 15 EU member states. Annexure 2 shows Pakistan’s share in the

total production of the world according to which, Pakistan in the fourth largest milk

producer in the world. (Annexure 2)

Growth in milk production in the developing countries:

In the previous annexure, we have seen the total world milk production, which was 600

million metric tons. Developing countries produced one third of total world milk

production in 2000 (216 million metric tons) and it is increasing. According to FAO

estimates, it is projected to reach 475 million metric tons in year 2030. Annexure 3

gives projected estimates of growth of milk in developing countries. (Annexure 3)

World milk production by type of milk

Various animals including buffalos, cows, sheep and goats produce milk. Total world

milk production is dominated by cow’s milk followed by buffalo, goat and sheep.

According to FAO estimates, out of the total milk production in 2001, cow’s milk

accounted for 84.6% of the total world milk production followed by buffalo milk

(11.8%,), goat milk (2.1)% and sheep milk (1.3%). (Annexure 4)

(Annexure 5)

MILK PRODUCTION BY REGION IN PAKISTAN

(Annexure 6)

MILK PRODUCTION BY TYPE AND REGION IN PAKISTAN

Milk production in Pakistan

Pakistan is the fourth largest milk producer in the world. About a third of the total milk

produced by the rural families’ flows out to urban consumers and processing industries.

In urban areas milk is available to common consumers in two ways: loose / unprocessed

milk and packed/ processed milk.1 Dairy companies such as Nestle and Haleeb are the

main part of milk marketing structure. Haleeb Foods Limited (HFL) as local company,

which developed from a small structure.

Livestock sector in Pakistan contributes almost 50 percent to the value addition in the

agriculture sector, and almost 11 percent to GDP, which is higher than the contribution

made by the crop sector (47.4% in agriculture and 10.3% in GDP). The role of livestock

sector in the rural economy is very crucial as 30-35 million rural population of the

country is engaged in this sector for its livelihood. Within the livestock sector, milk is the

largest and the single most important commodity.2 Pakistan also has an industrial

production capacity of approximately 47.5 million liters per year of ice cream.

Pakistan's dairy industry is plagued by a number of problems which include lack of

commercial dairy farms, low productivity due to poor nutrition, a weak infrastructure,

lack of financial facilities, and the ready availability of raw milk to a poor and

uneducated population. Although Pakistan was ranked fourth among the five leading milk

producing countries in the world, with an estimated 24 million animals having produced

closely to 28 million tons of milk in year 2003 and over 31 million tons during 2005-06

as the 5th largest producer of milk in the world, its yield per animal is only one-fifth of

that of Western Europe.3 The total year wise milk production of Pakistan is shown in

(Annexure 7)

Milk processing and marketing

1 Consumers International Asia Pacific Office, 20062 Govt. of Pakistan, Economic Survey 2005-063 FISDA-USAID, 2006

In Pakistan only 3-4% of the total milk is processed and marketed through formal

channels whereas the remaining 97% of the milk reaches end users for immediate

consumption through an extensive, multi-layered distribution system of middlemen.

However the processed milk consumption is growing at the rate of 20% per year.

Pasteurized and UHT milk in tetra packs are very popular products (PISDA-USAID,

2006). Most milk shops and bakeries across Pakistan manufacture and sell traditional

dairy products like Dahi (Yogurt) and Khoya (Condensed milk sweet).

Large dairy shops also produce Desi ghee and butter. Processing plants have also

introduced a number of dairy products like yogurt, drinking yogurt, flavored milk, cream,

butter, ghee, cheese, ice cream etc. The quantities sold however are small except for

yogurt & butter. Industrial processing units in addition to the traditional traders of

sweetmeats, milk, yogurt, ghee and other dairy products have been set-up. Most of

processing capacity is concentrated near larger markets and away from potential sources

of milk. More than 53 modern milk-processing facilities were established before 1974.

By 1974 less than half were operating and after the introduction of the first UHT, long-

life milk plant came into operation. Estimates of processing capacity in Pakistan are

given in (Annexure 8)

Milk price

As a result of a complex collection and distribution system, the current milk quality in

Pakistan is below international standards. The average farm gate price of milk is Rs 10

per liter. It varies from Rs 8 to Rs 16 per liter depending upon the season.4 Variation of

farm gate price is not linked to the quality of the milk. It is rather determined by two

factors. One is the financial arrangement between the buyer and seller. The second factor

is the geographical location. In areas where livestock rearing is difficult due to very hot

weather or scarcity of fodder like in Rawalpindi, farmers get a better price for their milk.

4

But when the price of the fodder is taken into account, the net income of these farmers is

not significantly higher than the income of farmers from other areas of Punjab.

Currently, there are no policies to regulate milk prices at the farm level. The middlemen,

contractors, Gawalas (local milk collection, transportation, and distribution people)

processors, processed unpacked milk, loose milk, and processed milk are the segments of

the dairy value chain. The processed packed milk costs Rs. 36 per liter where as

the loose milk costs Rs 24-26 per liter.

Around a third of the total milk produced by the rural family’s flows out to urban

consumers and processing industries. More than half of the milk collected by urban

traders and processing industries comes from small herd families. The family's decision

to sell milk and the amount to sell is clearly poverty driven. Small farmers sell milk

only because they have no other source of cash income. Milk in urban areas is accessible

to common consumers in two ways: loose, unprocessed milk and packed, processed milk.

Each has its own price regime.

The unprocessed milk passes through the middle persons before it reaches the urban

retailer. The price of milk increases by one rupee per liter at every stage of sale. The

'Dodhees (Gawalas)’ generally have undocumented contracts with farmers for regular

milk supply. They pay farmers an average price of Rs. 10 per kg. Some 'dodhees' have

milk storage and chilling system and transport system. Transportation generally costs

Rs.0.50 to Rs.1.0 per liter. 'Dodhees' make one rupee per liter. (Annexure 9)

The urban retailers deliver milk door to door, by motorbike or sell it in a shop to

consumers. Consumers pay between Rs.18 to Rs.28 per liter depending on the fat content

of the unprocessed milk.

Margins

As mentioned earlier, the HFL were paying Rs. 14-22 according to percentage of SNF in

milk per litre to the farmers and the commission agent who collects milk on the behalf of

the HFL was paid Rs. 1 per litre. The company packed UHT milk is being sold in the

market at Rs. 36 per litre. Now the differential paid by the consumer as compared to

what accrues to farmers is Rs 12-22. Not all of this goes to the HFL. According to what

was gathered from the discussions with the field staff of the company was that the

company was paying Rs. 1 per litre to the collection agents and Rs. 7 per Km for

transportation from the collection centre to PHE to a Hilux Van owner and Rs. 11 to

Mazda Van owner which has comparatively more capacity that a Hilux Van. The HFL

officials also told that the company was paying Rs. 16 per Km to big vehicle owners to

transport milk from PHE to the processing plant as transportation cost. Since the

company officials were not forthcoming on the cost issues, it could not be gauged as to

how much cost was incurred by company on packaging.

There are no price controls and this has happened after the introduction of local

government system under the devolution plan. Companies are given free hand in

charging enormously high prices for processed milk. They procure milk at 6.5% fat

content and supply milk to the consumers at 3.5% fat content.  Moreover, the companies

also produce different by products by way of which they earn extra profits.

High concentration of economic power in the late 1960 required a competition regime in

Pakistan and eventually the central government enacted an Anti-Monopoly and

Restrictive Trade Practices Law in 1970. This is called “the Monopolies and Restrictive

Trade Practices (Control and Prevention) Law and an institution in the name of

Monopoly Control Authority (MCA) was formed. The broad objectives of the law are to

provide measures against undue concentration of individual economic power, monopoly

power and restrictive trade practices. The law spells out the situations, which shall be

deemed to constitute undue concentration of economic power, unreasonable monopoly

power and unreasonably restrictive trade practices. The law prohibits these clearly

defined situations and collects information through the process of registration about these

and other circumstances, which are likely to lead to such situations. In the case of milk,

the MCA has not yet taken cognizance of the high price differential between the fresh

and processed milk.

Market share

As far as market share is concern according to “Digest of Industrial Secters in Pakistan”

in a UHT packed milk category MILK PACK is dominated by other brand having more

then 3000 collection centers and get market share more then Haleeb FOODS LIMITED

that was 44%, and as Engro Chemicals also steps in the diary industry and launches a

milk name “OLPERS” and in less then a year they declare a notice on September 13,

2006, as per the notice they able to captured 9% of market share and utilizing their 70%

capacity of their production unit is going to set another milk processing plant in Punjab.

And rest of 2% comes under NIRALA, GOOD MILK, and NURPUR.

Milk consumption

Consumption estimates for milk and dairy products in 1999–2000 are as follows:

(Annexure 10)

Future demand for milk and dairy products

The demand for liquid milk and dairy products in Pakistan will definitely continue to

increase, the most important reason being growth of the human population. Other

variables influencing demand are the growth of personal incomes and the evolution of

prices. The demand for 2010 has been predicted and the results are presented in

Annexure 11.

Milk collection

There are two types of milk collection systems adopted by HFL namely self-collection

and contract collection.

Self-collection

A system in which HFL purchases and preserves raw milk that meets its quality standards

through their staff members and delivers at PHE are known as self-collection. It may

include the following:

Milk Collection through Village Milk Collection Centre (VMCC)

Village Milk Collection Centre (VMCC) is a place where the farmers of an area come

and give milk and a person appointed by the company collects milk after testing it. The

person who collects milk there from the farmers is known as VMCC agent. It is provided

by all the essential utilities for the milk collection such as collection tub, testing

chemicals, ice and the rent of the place as well as the electricity bill. At VMCC the agent

keeps the record of all the farmers who supply milk at VMCC and takes samples from the

milk. The samples are tested and receipt is given to the farmer and a copy is kept at the

VMCC for record. The mode of payment at VMCC is weekly i.e., after a week, farmers

go to bank and receive their cash of all the week from their account.

Direct from Farmers (DF)

The collection vehicle, when goes to an area for the milk collection, there are some

farmers who don’t supply milk at the VMCC. They are aware of the timings of the

collection vehicle, so they supply milk directly to the people in the vehicle.

Progressive Farmers (PF)

Progressive farmers are those farmers those who deliver the milk in a large quantities and

supple directly to the collection vehicle.

Contract collection

It is the system in which HFL deals with the different private milk collecting persons and

enters into a contract with them to provide milk to the company. They may include the

following:

i. Mini Contractors

Mini contractors are those who provide milk about 1000 liter of milk per day. They

collect milk on their own. In this type of collection, the company identifies personnel

who are willing to work and are of good repute with fair dealings. The mini contractor

collects milk from the farmers of the area as well as from the other areas. Milkmen

from different areas also supply milk at mini contractor’s place. A company vehicle

collects milk from these minis contactors. The MOT (mobile tester) with that vehicle

tests the milk according to their quality standards. If it passes the tests, it is accepted and

rejected otherwise.

ii. Sub-Contractors

Sub Contractors are almost the same as that of mini contractors but the main difference is

that milk is collected from the mini contractor’s place but sub contractor has to transport

milk to the PHE of the company. Annexure 12

Milk procurement

Manager Milk Procurement (MMP) Plant is responsible for all the milk procurement in

the milk area. Milk collection area, which consists of mainly the provinces of Punjab and

Sindh, is divided into four regions headed by an MMP (Region). These regional offices

are at Arifwala, Chishtian, Jhang and R. Y. Khan. Each region consists of 3-4 zones; a

Zonal Manager heads this. There are 14 zones under these 4 regions. Executive Zonal

Manager or an Area Executive depending upon the size of daily collection heads each

zone. Each zone consists of 2-3 sub-zones. At sub-zonal level, there are PHE (Palate

Heat Exchanger). Under these sub-zones come VMCCs, mini contractors and sub

contractors, which are further responsible for the milk collection.

Milk collection area

There are 14 zones for self-collection of milk having 28 Main centers (PHE)

HFL Milk collection area: (Annexure 13)

Reception of Milk

Milk is collected from villages, forms and other local milk mans’. This milk is sent to

Haleeb plant through own tankers. Some suppliers also collect milk and sent it to plant by

their own means. This milk is first tested in reception lab after weighing.

Reception Laboratory

When the tankers enter into to the HFL Premises, a token is given to him, which contains

the following things:

i. Name of the supplier/ Area.

ii. Number of the tanker.

iii. Token # allotted by the gatekeeper.

iv. Any thing attached to the truck e.g. Tire. Bag.

Then the truck goes to the parking area from where sample is taken by the reception lab

technician. Then reception lab technicians perform the tests needed, if the results are ok,

the sample (ACCEPTED) is marked on the token, and then the truck goes to the

weighbridge where it is weighed. Then truck comes to the receiving area where finally

the reception of the milk takes place by the centrifugal pumps & stored into the silos.

Then the empty truck again goes to the weighbridge & again weighed & finally goes out

of the HFL.

Weight of milk = Total weight – Empty truck weight

Volume in liters of milk = weight in kilogram / specific gravity of that milk

Reception Lab Activities

Reception lab is a place where the composition of milk and adulteration in milk is usually

determined by a number of tests on arrival at the dairy & adulterated milk is not accepted.

Quality assurance

HFL has a strict and stringent quality policy regarding intake of raw milk. At every PHE

rigorous quality tests are conducted to ensure that only fresh milk of the highest quality is

accepted at the plant premises. The internationally recognized tests are used to check for

a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents.

Sampling of Raw Milk

Ice is removed from tanker and the milk is thoroughly mixed with the plunger for 1-2

minutes, then the lab technician with the help of sampler, does the sampling.

Types of Sample:

Composite Sample:

Mixed sample is taken from all the portions of a tanker in equal amount. The amount of

composite sample is 900ml.

Separate Sample:

Sample taken from a single portion of the tanker is called separate sample. The amount of

separate sample is 600ml.

Tests performed in reception lab

They performed the following tests in the reception lab.

Oranoleptic Tests

i. Taste

ii. Smell

iii. Color

Qualitative Tests

i. Temperature test

ii. Clots on boiling (COB)

Chemical Tests

i. PH

ii. Acidity

iii. Alcohol precipitation test

iv. Salt test

Quantitative Test

i. Fat test

ii. Lactometer reading for SNF and TS

iii. Iodine value test

Adulteration Tests

i. Starch test

ii. Glucose test

iii. Detergent test

iv. Sugar test

v. Urea test

vi. Sodium test

Detail About reception Lab

In reception lab following analysis are performed and their purpose given:

Milk analysis is carried out to determine:

Freshness

Adulteration

Bacterial content, and

Milk constituents for payment calculation.

Sampling

A representative sample is essential for accurate testing. Milk processors usually pay for

milk or cream on the basis of butterfat, and a single butterfat test may be used to

determine the butterfat content of thousands of liters of milk or cream. Therefore, an

accurate and representative sample must be obtained.

Milk must be mixed thoroughly prior to sampling and analysis to ensure a representative

sample. If the volume of milk is small, e.g. from an individual cow, the milk may be

poured from one bucket to another and a small sample of milk taken immediately. But if

large volumes of milk are handled, stirring must mix the cream or milk. However, it is

very difficult to obtain a representative sample of milk or cream when a large volume is

dumped into a large container. In such a case the milk must be stirred thoroughly and

small samples taken from three or more places in the container. For best results, milk or

cream must be sampled when it is at a temperature between 15 and 32c. If the cream is

too cool it will be thick and viscous and will be difficult to sample.

Sour milk or cream, in which casein has coagulated, must be sampled frequently.

Sampling sour milk follows the same procedure as for fresh milk. if the milk or cream

has been standing for a long time and a deposit has formed on the surface and sides of the

container, it should be warmed while agitate before a sample is removed.

A. Organoleptic Tests

Purpose:

This includes the test of smell, color and taste of the milk and the purpose of these tests to

check the suitability of milk for further processing or release to the market.

B. Qualitative tests

This test includes two types of tests.

i) Physical tests

These tests have two more sub categories namely clot on boiling test and temperature

tests.

a) Temperature tests:

The temperature of the raw milk sample should be less then 10c.

b). Clots on boiling (COB):

Milk is heated to boiling and if milk precipitates in the test tube, the test is positive.

ii) Chemical tests

Chemical tests are of three types namely pH Test, Alcohol Precipitation Test and Salt

Test.

a). pH Test

pH test is performed to judge the keeping quality of milk or to estimate the intensity of

acidity/alkalinity of milk.

b). Alcohol Precipitation Test (APT)

APT is performed to check the heat stability of milk during heat treatment. If

precipitation occurs, the test is considered to be positive.

c). Salt Test

Salt test is administered to determine percentage of salt (such as Na Cl) in Milk.

Results:

% Salt = burette reading x 0.065

% Salt (as chloride) = Burette reading x 0.065 x 9/ SNF (%) of sample.

C. Quantitative test

Quantitative tests include Fat Test, LR Test and Iodine Value Test.

i). Fat Test

Fat test is performed to determine fat percentage in milk sample to check if it conforms to

HFL standards (i.e. 6 %). It also forms basis of payment to farmers.

ii). LR Test:

LR test is conducted to determine percentage of SNF/Total solids in milk sample.

Results

%SNF = (LR/4)+(0.22XFat)+0.72 =% SNF

Total Solids Percentage = SNF Percentage + Fat Percentage

iii). Iodine Value Test (IVT)

IVT tests the value of iodine in milk by following formula. This test takes maximum

time of all the tests so this test is only carried out at the main plant.

Formula:

Iodine value =

Where:

a = number of ml of 0.1 N sodium thiosulphate used in the blank test.

b = number of ml of 0.1 N sodium thiosulphate used in the titration with the butter-fat

present.

p = weight of butterfat taken for the analysis.

D. Adulteration Test

Milk is adulterated by mixing various things in it. HFL performs several tests to find out

different adulterants. Tests include Starch, Sugar, Glucose, Detergent, Urea, and Sodium

tests.

a) Starch Test

The purpose of this test is to determine the starch adulteration in the milk. If black or

dark blue granules are present, the test is positive.

b) Glucose Test

Glucose test is performed to know the adulteration of glucose to increase the sugar

contents of the milk. If brick red precipitations are found, the test is positive.

c) Detergent Test:

This test refers to detect the harmful detergents used as adulterants. Pinkish color shows

that the test is positive.

d) Sugar (Sucrose) Test:

It is also an adulteration test. If deep violet color is present after 5-8 minutes, the test is

positive.

e) Urea Test:

In this test, milk is tested for the adulteration of urea as urea mixing increases the LR

reading of the milk. If pink color appears, the test is positive.

f) Sodium (Na) Test:

Sodium Test is performed to determine Na salt concentration in the raw milk. If the Na

ion concentration at 9% SNF is more than 1000ppm, the test is positive.

All these tests take about 30-40 minutes excluding the iodine test, which takes about 3-4

hours. If any of the tests reports positive, milk is rejected.

HALEEB PLANT

I visit and study the following section of Haleeb plant during my internship.

i. Pasteurization

ii. UHT plant

iii. Bottling plant

iv. Powder plant

v. Butter section

vi. Ghee section

vii. UHT cream

viii. Yogurt and Raita section

ix. Juice section

x. PLE section

xi. Boiler house

xii. Waste water treatment plant

(ANNEXURE 14)

PASTEURIZATION SECTION

RECEPTION OF MILK

After reception lab testing and recommending OK and stamped “ACCEPTED” by

reception lab shift chemist, the tank is sent to milk reception section, where milk is

sucked through filters by centrifugal pumps, and then passed to chillers.

Milk is then chilled to < 10c (normally about 6c) in plate chiller in which ice cool water

is used and then stored in storage silos.

Milk from storage silos comes to pasteurization section where pasteurization takes place

in following ways:

PASTEURIZATION

The founder of this process is Louis Pasteur; in which heat treatment is given to the milk

in order to inactivate the enzymes and destroy the pathogenic microorganism and it also

produce whitening in the milk. The shelf life of the milk is increased up to 7 – 8 days

after pasteurization.

There are four main processes take place in it:

Heat Treatment

It has three parts:

Regeneration No.1

Regeneration No.2

Heating And Cooling Section

Separation.

Deodorization

Homogenization

The following steps take place in the process of pasteurization:

Balance Tank:

From the silos milk comes in balance tank through a big filter. Balance tank have a

central float ball, which control the quantity of in coming milk by a valve and maintain

level as needed by the process.

Regeneration No.1

From balance tank milk goes to regeneration no.1, where the temperature of the milk is

raise o 35 – 40 c by regeneration method. In regeneration no.1 the milk and the hot milk

coming after pasteurization has counter flow.

Regeneration No.2

Then the milk goes to regeneration no.2. It is also part of plate heat exchange (PHE) in

which milk is heated to 55 – 65c.

Separator:

From regeneration no.2 milk goes to separator that will separate the extra butterfat from

the milk in the form of cream and it will also remove the unwanted material in the milk

(Sludge). Separator work at 6000 – 7000 rpm and it has porous stacked plates.

Due to centrifugal force, fat particles having less density are separated from the milk.

Impurities are also separated through the centrifugal action, as they down at the bottom,

from where these are dispose off.

Deodorizer:

From separator milk goes to deodorizer. As the name indicates it deodorize the bad smell

of milk. It is steel tank and divided into two parts. The lower portion of deodorize

contains chilled water line, which cools the central plate. Milk falls in the cold surface;

the bad odor vapors rise upward and these are sucked our by vacuum pumps and released

our after condensation along with water.

Homogenizer:

From deodorizer milk goes to homogenizer in which milk is passed through nozzle at

high pressure of 100 – 150 bar.

UHT PLANT

(Ultra Heat Treatment)

In pasteurization only vegetative forms of bacteria are killed while spore farming

microbes, the most pathogenic microorganism still exists. Ultra Heat Treatment (UHT) is

done in order to kill these microbes and to increase the shelf life of the milk. After

pasteurization the milk is stored. After pasteurization milk is stored in silo 3 1, 2,3,4,5 at

6 – 8 c.

(Annexure 15)

Bottling plant

UHT milk is also filled in bottles. Candia plant is the only bottling plant for milk in

Pakistan. Empty bottles are also formed in the Haleeb Foods Limited.

Blow Molding Machine

Following steps are involved.

Feeders:

Bottles making material is imported from France. It is in granular form and is of two

types.

i) HDPE (High Density Poly Ethylene) White.

ii) HDPE Black

Grinder:

Necks of the bottles and discarded bottles are grinded here into small pieces to be used in

middle lawyer along with black granules.

Blow Molder:

Material is heated and transformed into the main head and then the bottle is cooled

immediately by the circulation of cold water (8 – 10c) into the molder.

Neck Trimmer:

Necks of the bottles are removed, as they are not needed.

Storage:

Bottles are stored in the silos. There are two silos for storage each having storage

capacity of 70,000 bottles of ½ liter or 35,000 bottles of 1 liter.

Filling;

The bottles come to the filling machine by the conveyer. Conveyer separator makes the

proper distance among the bottles. The UHT milk comes to the filling machine from the

UHT section. Open filling tubes take place in the bottles. The sensor controls the amount

of milk in bottles. After filling Aluminum seal is placed on the bottle and seals the

bottles.

Printing:

After sealing Ink jet printer print the date and time in each bottle.

Then the bottle goes toward the round table for cage filling.

Powder Plant

There are mainly produced four types of powder products in powder plant.

Skimmed milk powder (SMP)

Instant skimmed milk powder (ISMP)

Full cream milk powder (IFCMP)

Instant vegetable full cream milk powder (IVFCMP)

There are two main section of powder plant.

Evaporation section

Drying section

After reception of raw milk it is pasteurize, standardize according to requirement of

finished product. Standardization means to adjust the fat, SNF in raw milk to requirement

of end product. After standardization milk reaches in evaporator where milk is first

heated then evaporation is done under vacuum, as result condensed milk is produce.

Then the milk is heated to 75 – 90 c. Then the condensed milk is converted in powder

milk in drying section and become powder particles. Then further moisture of powder

reduces by passing hot air. At the end sieving and packing is done.

BUTTER SECTION

Pasteurized cream is used for the production of butter. Two types of butter are produced

in Haleeb Foods Limited.

1) Plain

2) Salted

Plain Butter:

Pasteurized cream (50 – 55%) is transferred to balance tank of the churner through the

trolleys. Normally the churner is filled to 40 – 50 % to allow a room for foaming. Ice

water is showered on the rotating churner to maintain the temperature. The churner is

self-rotating and it also have agitator, both are in opposite direction. So butter is separated

due to churner and agitating action. Butter yellow color and beta-carotene is added in

churner. Churner revolves at 40 rpm for 15 – 20 minutes.

Buttermilk is drained after checking its LR and fat %. Then double washing is given to

the butter. Butter contains 80 – 84 % fat at the end.

Salted

The procedure is same as the plain butter but the salt is added at the end by making its

solutions in water. Now rotate the churner at slow speed for 20 – 25 minutes, so that salt

is mixed will. (ANNEXURE 16)

Churning Recovery:

Churning recovery is the measure of how much of the fat in the cream is converted into

butter. It is expressed in terms of that fat remaining in the buttermilk as a % of total fat in

the cream.

Ghee Section

Haleeb Foods Limited is also producing Desi Ghee with the brand name of “ASLI DESI

GHEE”. It is made from the butter. Butter is transferred into the under ground tank, here

heated in double jacketed tank with the help pf steam. Then the butter is transferred into

the ghee melter, which has the capacity of 800kg. Here 70 – 80c temperature is given for

6 – 8 hours at 1 – 1.5 bar pressure. Heating is done with steam coil. Setting time for the

ghee is two hours. The residues, which are called sludge, settle down at the bottom of the

melter and drained our. Reheating is done. Repeat the process for 2 – 3 times. Then ghee

is transferred into the storage tank where antioxidants are added @ 0.03%. Combination

of BHA and BHT is used in the ratio of 20:18. The antioxidants are solved in the edible

oil and then added into the ghee. Then the quality tests are performed and finally packing

is done.

Packaging:

Desi ghee is packed in plastic pouch and tin (1 kg and 5 kg).

UHT CREAM

(Plain & Honey)

For cream separation milk is received and stored as per UHT milk HACCP plan. During

pasteurization cycle when milk is passed through separator, the cream is removed which

is further processed as,

HONEY CREAM

All the procedure is same as the plain cream only 3% honey is added during its

production. (ANNEXURE 17)

YOGURT SECTION

Plain yogurt, Mint raita and Zera raita is also produced in the Haleeb Foods Limited.

Following steps are involved in the making of the yogurt.

Milk Reception:

Reception of raw milk is done as per HACCP plan and stored at below 10c.

Milk is de creamed and pasteurized according the standards.

Standardization:

1st standardization of batch for Haleeb yogurt is done as per recipe. For standardization

following additions is made.

Condense Skimmed Milk

Pasteurized Milk

Cream Storage

ISMP/ IFCMP

Water

Milk from standardization is stored in a stirred tank called as Y-5 and following additions

are made according to the product. All compounds are mixed in mixing tank and sent to

Y-5, here complete mixing take place.

Then the portion of the batch is heated to 50 – 60c. Then this portion is added into full

batch and mixed properly.

Homogenization

Milk is heated to 90 – 50c for 3-5 minutes for pasteurization. Pasteurized milk is

homogenized at 150 to 180-bar pressure. This milk is then heated with the help of hot

water. From heater milk is filled to plastic cups in filling machine and packed and sent to

incubator room. Filling is done in 200, 100g, and 450g. Capacity of homogenize is 12000

Liter per hour.

Filling

Yogurt is heated to 40 – 50c and filled in plastic cups. Aluminum seals are applied and

for further protection plastic lids are placed on the cups.

Incubation

Filled cups are then stored in incubator room and a temperature of 38 – 42c for 3 – 4

hours. Continuously pH is checked and at attaining a 4.6 value it is then shifted to cold

storage to stop the further bacteria growth.

Chilling & Storage:

Then these cups are immediately chilled at < 2c temperature in the blast room and after

24 hours product is checked and dispatched.

HALEEB LABBAN

(SWEET & SALTISH)

In Haleeb Foods Limited labban is produced in both tastes as saltish and as sweet. For

labban production milk is treated in following ways.

1) Pasteurization:

Milk is pasteurized in pasteurization section as for other milk products.

2) Batch Standardization:

From pasteurization milk is received in a stirred tank called Y4.

In this tank adding pasteurized cream, skimmed milk, condensed milk, and pasteurized

water.

From here after standardization milk is again sent for pasteurization, where pasteurization

of milk takes place at 95c for 3- 5 minutes and homogenized at 150 bars. After re-

pasteurization milk is sent to again stirred tank Y3. From Y3 milk is sent to tank Y4

through heater.

3) Fermentation:

Milk is shifted to Y4 and then whole milk is agitated for 10 minutes. Then agitation is

stopped and milk is allowed to ferment for about 3 – 6 hours. During fermentation pH is

monitored when it comes up to 4.7 – 4.8 additions are made.

To add into it sugar (for Sweet Labban), CMC (Dry Milk), and hot water in separate tank,

agitate them to completely mix for about 15 –25 minutes. And them shifted to Y4, where

homogenized. This is then chilled to 25 – 30c in PHE giving several circulations to about

30 minutes. And then shifted to UHT section.

4) UHT of Labban:

For UHT of labban, labban is received in UHT section and treated as like of milk but at a

low temperature.

5) Sterilization:

Labban is sterilized at a temperature of 100c. And then cooled to ambient temperature.

6) Packing:

Labban is packed in tetra pack machine at ambient temperature to a volume of 250 ml,

and then sent to PLE and stored.

PREPARATION OF JUICES

Following four types of juices are produced by HALEEB FOODS LIMITED.

1. Good Day

2. Tropico

3. Fun Day

4. Nectar

Further details of their flavors are as under:

GOOD DAY:

1) Apple

2) Red Grape

3) Mango

4) Pineapple

5) Orange

6) Mix

FUN DAY:

1) Aamonka

2) Arochi

3) Mangrrod

4) Iv.Aamnas

TROPICO:

1. Apple

2. Mango

3. Mix

NECTARS:

1. Apple

2. Mango

3. Red blood

4. Kino

5. Mix

All the four flavors have same procedure except the ingredients. But for mango mixing

sugar and supper cool is done separately and then slowly with other thing mixed to main

juice tank. Following steps are taken for the production of the juice:

1) Batch Standardization:

All ingredients are taken in the tank Y2, Y3 and Y4 for batch standardization through

blender. Ingredients are added into hopper of blender and by water it goes to mixing

tanks. After adding all ingredients level of tank is maintained by adding pasteurized

water. Mixing sample is tested by lab and further additions are made to mach the standard

of quality and acidity. To decrease acidity water is added. To increase acidity citric acid

is added. For GOOD DAY juices all quality is maintained by adding water, pulp.

Following things are used to standardize batch.

Pulp

Color

Stabilizer

Sugar

Water

Flavor

After standardization juice is either sent to UHT unit if required if not then sent to

pasteurizer.

2) UHT:

UHT of juice is same as that of milk only difference is that got juice temperature is 90c.

After UHT juices sent to tetra pack machine, packed and stored.

3) Pasteurization:

After standardization of batch the juice is pasteurized in holding tubes. From holding

tubes it comes back to pasteurizer section called as cooler where it cooled down. Then

juice is ready to packing and sent to packing section.

4) Packing:

After pasteurization the juice is packed in the tetra pack in the 250ml and in 1 liter

packing. From tetra pack section juice is packed in trays and sent to store after tray

polythene cover.

(Annexure 18)

(Annexure 19)

PLE SECTION

The bricks are pouches of the milk are packed in the trays, which are further packed by

the polythene sheet. Tray packers’ machines are present alternates to the Tetra Pack

machines.

Following steps are involved

1- Packing in trays

2- Stacking on pallets

3- Shrink machine

4- Shifting to warehouse.

1) Packing Machine

These packing machines have following parts:

i) In feed Chain

It consists of the conveyer, which brings the bricks from Tetra Pack to the machine inlet.

ii) Tray Holder:

It holds the tray magazine.

iii) Tray pusher:

It brings the trays from the tray magazine to the tray folder.

iv) Tray magazine:

It consists of the trays.

v) Tray folder:

It folds the trays for loading of bricks in it.

vi) Hot Melt Unit:

It applies the gum to the flap of the trays.

vii) Hot Melt Tank:

In it gum is heated at 350c.

viii) Out Feed:

From the tray having bricks come out of the machine.

ix) Conveyer:

It leads the tray to the shrink machine. Out put sensors are used to control the flow of the

trays.

The products of Tetra Pack machines, TBA, K1, G1, G2, H, I, J, K2; TCA, N.I, A1 and

all the TFA, are manually packed.

2) Shrink Machines:

There are two shrink machines in Haleeb Foods Limited.

1- Shrink machine A

2- Shrink machine B

These machines have following parts:

i. In feed

ii. Tray pusher

iii. Poly film

iv. Jaw (seals at 55c and then cuts)

v. Heater (wraps the tray at 150c)

Dairy queen is packed in closed cartons they are sealed by scotch tape.

(ANNEXURE 20)

FLOW DIAGRAM OF PLE

(ANNEXURE 21)

ASEPTIC FILLING

CIP (CLEANING IN PLACE)

Definition:

NCIP is removal of milk particles and lowering the microbial load in the production line

and in the raw milk tankers by using various types of cleaning agents (Acid, Base and

Water) and temperature.

Function Of Various Cleaning Agent In CIP

Lye for removal of fat residues.

Acid for the removal of protein matter.

Hot water for the removal of residues and salt.

Acid and hot water also used for lowering microbial load.

Types:

Two types of CIP are done in the Haleeb Foods Limited.

1. Short CIP (40 minutes)

2. Long CIP (90 minutes)

Short CIP:

1. Milk is drained out of the tanker or the pipelines and then it is washed with water

for 10 minutes.

2. After this Lye (NaOH) solution is circulated in the tank or lines for 10 minutes.

3. Again tanker is washed with water for 5 minutes.

4. Then nitric acid (HNO3) is circulated in the tank or lines for 10 minutes.

5. Again tanker is washed with hot water for 5 minutes.

Long CIP:

1. Milk is drained out of tanker or the pipelines and then it is washed with water for

10 minutes.

2. After this Lye (NaOH) is circulated in the tank or lines for 15 minutes.

3. Again tanker is washed with water for 10 minutes.

4. Then nitric acid (HNO3) is circulated in the tank for 15 minutes.

5. Again tanker is washed with hot water for 10 minutes.

6. Water is again circulated for 10 minutes in case of ATS tanks.

Warehouses

Warehouse is under the supply chain department. All the products after packing are

transferred to the warehouse from they are loaded on the vehicles and transported to the

market.

It purposes is to generate.

1. Daily stock report

2. Release report

3. Order sheet

4. Loading slip.

5. Dispatch report

WASTE WATER TREATMENT PLANT

Effluent water from all over the plant, either process or washing or CIP drain is collected

in reception sump at the wastewater treatment plant.

From sump water overflows to the fat trap, here water is allowed to settle for about 4 –5

hours and by fat skimmer floating fat is removed and stored in fat pit. From where fat is

sold to contractors for use is soap manufacturing.

Remaining fat removed water is sent to extra sump and then pumps to balancing tank.

From balancing tank water is pumped to compact treatment plant (CTP).

COMPACT TREATMENT PLANT:

CTP is a circular tank having two portions, inner shell and outer shell. It is 20 feet high

and made of concrete. Inner shell is settling tank and outer shell is aeration unit in

aeration unit, air is bowed from bottom, which activate the bacteria. This activated

bacterium converts the remaining fat into sludge.

From outer shell water goes to inner shell by gravity though a pipe present at the bottom

of the shell. In the inner shell an agitator is provided, which agitate the whole water in a

very slow speed. Algae produced come to float and removed by this agitator blade and

passed to algae tank and then drained.

Remaining water continuously drained after checking its pH, OIL and GREASES and

temperature after regular interval of time.

Sludge settled is revered to outer shell by airlift pump and is called activated sludge,

which help to activate the bacteria. When enough activated sludge settles in outer shell it

is removed, soled and used as a fertilizer form. (Annexure 22)

Company Departmental Functions

As we are living in the dynamic world and in this rapidly changing environment,

customer taste in also changing so right decision at a right time is always needed in order

to perform effectively and keep the organization top of their desires. Output of one

department will be the input of other department, so every department should work

timely in order to keep the customer long with their company offering otherwise

customer will switch or move to competitor products.

During my internship I visit number of department and learn how they are working.

Quality Assurance Department

Quality assurance department play a very important role in any production concern

organization because the organization are dependent on them no other department can do

any thing if the product is not made according to customer demand or the standard the

Organization maintains.

During my visit in quality assurance department I noticed they start working as the milk

comes in HFL production plant. Their first job is to take sample of the raw milk and

check the suitability of milk either the milk is able to proceed further or not suitable for

production and if the sample passes, they start measuring those standard they are

following and till the final packaging of the product will be done, they again go for the

tests either the product is suitable to ship and send in the market or not suitable.

Research And Development

Research and development department also play as very major role in a organization,

although they are directed from the marketing department because marketing department

inform themselves that their any one existing product (juices) are not selling well so then

research and development department start working and they will go for certain test,

competitor test analysis, is due to season demand get down, is due to old packaging

design customer start ignoring the product or might some reason will lead to demand of

the product and company sale get down.

And if the marketing department want to develop a new product (NPD) then they should

also communicate with the research and development department and with a formal

meeting on which head of marketing department and the head of research and

development department talk and check the product suitability either the product is able

to launch, is their restriction from the government or might be our religion not support

due to the nature of product. Even the head of marketing department also responsible to

mention either the product will be for boy or girls, type of packaging they want for the

product.

Production Department

Production is the functional area responsible for turning input into outputs through a

series of production processes, and the production manager is responsible for making

sure that raw material are provided and made into finished goods effectively. He/ she

must make sure that work is carried out smoothly, and must supervise procedures for

making work more efficient and more enjoyable.

During my visit I noticed certain function the production department performed:

First as any shift in-charge take his control they review the on-going production, how

much it done and how much needed in order to meet the order. So they keep the process

till the orders get completed. They had to continuously communicate with the employees

handling machinery and other packaging equipment, with the quality assurance

department either the goods are according to the standards otherwise they go for certain

tests to make the product according to the standards. And if they get any new order or

demand from their representative production manger which they get from the marketing

department or from the sales department they go for to check the availability of the raw

material they need in order to fulfill the order. And then they precede the order to the sub

ordinate to make themselves prepare for the production of new order. And after the order

get done they handle the stock to warehouse department and get a slip in return as a prove

that they dispatch how much stock to ware house department so there the main

responsibility of the production department get done, and this process is on going till the

company exist.

A part of those activities they had also to take care of employees. Those employees are

working properly according to company policy. And if the employee need any leave due

to some reason they had to manage other person should be present their in the absence of

that particular person, and the production run smoothly and effectively.

Marketing Department

Marketing department of any production concern organizations, work likes a heart of a

human body. The Marketing Department is a unit of organization, traditionally charged

with carrying out specific tasks that are deemed to be "marketing" (such as advertising,

market research).

During my visit I noticed certain activities they performed in order to keep the customer

satisfied and long with Haleeb Foods Limited. First as the take a charge they review the

last day sale by reviewing the sales report and if any deal is going on regarding

packaging, distribution or any concern they talked with the representative person, they

talked with the distributors to know the current market demand for their products. For the

existing product they always go for to check the availability of the product in the market

because for the repeat purchase product should be present there otherwise their might be

a chance customer will not go to another shop and purchase competitor product, after

certain period of time they go for certain surveys, trial in order to know the customer

attitude regarding the specific product and for those products are not selling well they use

“Win Battle Technique”

Detail about Win Battle Technique

“In this technique, they look at those products are not selling well or not getting much

fame in the mind of consumer. So they pin point the gaps and then applied certain

strategies in order to cope with the problem the product is facing”.

They had to do own self negotiation with the advertisings agency in order to get

contract with them and place a billboard or any promotion campaign there they want to

place.

Red Communication Arts

15-08-2006

Haleeb Foods Limited has hired red communication arts as their new advertising agency,

which will be handling the following accounts: 1. BAVERAGES: Haleeb Good-Day,

Haleeb Funday, Tropico, Tropico nectar, Candia, Candy up, Haleeb Labban 2. Corporate

Account.

Haleeb food’s Special Campaign

15-08-06

Haleeb foods have launched a special campaign on the 59th anniversary of Pakistan to

celebrate the auspicious event with true spirit towards the country along with its people.

NPD Brief;

If the department wants to launch a new product in the market, they had to communicate

through a formal meeting with a research and development department head and head of

production department. If the general manger of marketing department accept or OK the

concept they follow the idea to Research & Development department and the production

department and they make a product name as PROTO TYPE PRODUCT which they

follow to the marketing department and if the department face some problem while

testing the product they tell to the production department about the problem they face

while testing and then the production department will again start work on it and in a

result present a product name as “RENEWED PRODUCT” and send them again to the

marketing department for another PRODUCT TEST and after OK they launch a product

and go for POST MEDIA ANALYSIS either which medium should company use in

order to communicate with the consumer after that the company measure the results and

go for CAMPAIGN TWEAK and in the last they made a decision for RE-LAUNCH/

FOLLOW U.

Every Department Function

They had to report to the finance department for (AOP) yearly, so they manipulate and

sort out the upcoming budge; they will have to spend either to increase the production

limit, how more human resource need, machinery, hardware and software due to increase

in demand in future, so it will also lead to calculate the ratio of profitability.

News & Updates Red Communication Arts

15-08-2006

Haleeb Foods Limited has hired red communication arts as their new advertising agency,

which will be handling the following accounts: 1. BAVERAGES: Haleeb Good-Day,

Haleeb Funday, Tropico, Tropico nectar, Candia, Candy up, Haleeb Labban 2. Corporate

Account.

Haleeb food’s Special Campaign

15-08-06

Haleeb foods have launched a special campaign on the 59th anniversary of Pakistan to

celebrate the auspicious event with true spirit towards the country along with its people.

DuPont Pakistan Launches First Aseptic Liquid Packaging System

April 17, 2006

DuPont recently installed the Pakistan first aseptic liquid packaging machine at Haleeb

Foods Pakistan. Haleeb UHT milk in new packaging being supplied by DuPont liquid

packaging system (DLPS).

SWOT Analysis of Industry

Strength of Product:

i. Traditionally healthy image of milk

ii. Versatile, high quality product which can be used in/for a wide variety of

foodstuffs

Excellent environment/capacity for milk production:

i. Good climate

ii. Industry support infrastructure.

Market:

Consumer confidence in integrity and safety of dairy products

Weakness

i. Increasing seasonal production pattern.

ii. Shortage of skilled workers.

iii. Limited connection between producer and market.

iv. Limited producer perception of consumer concern.

v. Many farmers do not know the true cost of production.

vi. Environmental pollution-diffuse water pollution.

vii. Lack of investment is processing sectors.

viii. Low levels of innovation.

ix. Lack of branding.

Opportunities

i. New technologies in production.

ii. Animal genetics.

iii. Increasing consumer awareness of need for healthy eating.

iv. Greater demand to know origin of food.

v. Joint venture with existing companies.

Threats

i. Animal disease outbreak.

ii. Persistent animal health problem.

iii. Investment risk.

SWOT Analysis of PAKISTAN Dairy Industry

Strengths:

i. Endowed with very good breeds of buffalo and cows

ii. Highest per capita consumption of milk in Asia

iii. Regular culling of less productive/unproductive animals

iv. A high ratio of agricultural land to agricultural population

v. And emergence of commercial dairy farms on a large scale.

Weaknesses:

i. Small and scattered animal holdings

ii. Prevalence of traditional raw milk marketing systems

iii. Poor quality of milk; lack of remunerative producer price for milk

iv. Milk processing predominantly dependent on obsolete UHT technology

v. Mushrooming growth of cattle colonies in suburban areas; high cost of milk.

vi. Production; a long chain of middlemen

vii. Inadequate infrastructural and institutional facilities and support

viii. Low utilization of installed capacity of dairy plants

ix. Poor quality of animal health care and breeding services; lack of professional

management

x. Lack of a well-defined national policy for dairy development.

Opportunities:

i. Huge unsatisfied domestic demand for milk and milk products.

ii. And substantial scope for increasing domestic milk production through

improvement in the marketing system and by ensuring a year-round remunerative

price to milk producers.

Threats:

i. Unregulated imports of dairy products at cheap prices.

ii. Inadequate public and private investment in modernization of the sector.

iii. And vested interests in perpetuating the dependence on imports of dairy

commodities.

SWOT Analysis of the Company

Strength:

I. National brand.

II. High Market Share.

III. Getting international contracts.

IV. Company seeks continuous improvement.

V. Big product range.

Weakness:

I. Weak distribution networks as compared to their competitors.

II. Communication gap.

III. Slow promotional activities, campaign as compared to their competitors.

Opportunities:

I. Range of coming NPD (Haleeb condensed milk, Haleeb evaporated milk, Haleeb

cheese).

II. Getting international contracts with England, Middle East, and Holland,

Afghanistan.

III. More market share in liquid form milk category (56%).

Threats:

I. New entrants.

II. Resignations of their well-experienced staff due to good package competitor are

offering.

III. Not caring their existing SBU rather focusing more on their up-coming NPD.

Appendixes

Organizational chart

Annexure 1

World Milk Production

Annexure 2

HFL

R & DQAD

MARKETINGPRODUCTION

IMPORT&EXPORTMPD

FINANCE/ACCOUNTINGCUSTOMER COMPLAINTS

ADMINISTRATIONHUMAN RESOURCE

PERSONNEL DEPARTMENT

TECHNICAL

SALESSUPPLY CHAIN

Projected Milk Growth In Developing Countries By 2030

Annexure 3

World Milk Production by Type of Milk

Annexure 4

 Thousand million

litres As a percentage

Cow milk 494.6 84.6%

Buffalo milk 69.1 11.8%

Goat milk 12.5 2.1%

Sheep milk 7.8 1.3%

Other 1.3 0.2%

Total 585.3  100

Milk Production by Region

Annexure 5

Milk Production by Type and Region in Pakistan

Annexure 6

Year Wise Milk Production in Pakistan

Annexure 7

Fiscal Year Milk Production (000) tonnes

Fiscal Year Milk Production (000) tonnes

1990-91 15,481 1998-99 24,8761991-92 16,280 1999-2000 25,5661992-93 17,127 2000-01 26,2841993-94 18,006 2001-02 27,0311994-95 18,986 2002-03 27,8111995-96 22,970 2003-04 28,6241996-97 23,580 2004-05 29,4381997-98 24,215 2005-06 31,294

Processor Capacity of Various Milk Processing Companies

Annexure 8

Processors Capacity(Million liters)

Capacity utilization Average monthlyFlush Lean

Nestle 1.3 1.3 0.78 1.04HFL 0.9 0.9 0.54 0.72Millac 0.3 0.3 0.18 0.24Vita 0.05 0.03 0.018 0.024Halla 0.15 0.15 0.09 0.12Prime 0.1 0.1 0.06 0.08Nurpur 0.15 0.15 0.09 0.12Nirala 1 0.1 0.06 0.08Dairy Crest 0.15 0.15 0.09 0.12*Engro 0.35 0 0 0K & K .04 0 0 0Butt Dairies 0.04 0.06 0.036 0.048Munno Dairies 0.06 0.02 0.012 0.016Khi Dairies 0.1 0 0 0Military Dairy Farms 0.18 0.18 0.105 0.144Total 5.21 3.44 2.064 2.752

Milk Shares and Price for Type Milk

Annexure 9

Processed/Raw Type of Milk Market Share in

Volume

Sale/Price

Rs./Litre

Processed Milk UHT Tetra Pack 4.98% 32

UHT Poly Pack 0.02% 22

Open pasteurized milk sold at milk shops 3.76% 14-15

Pasteurized pouch 0.24% 20

Raw/Unprocessed

Milk

Open milk sold at milk shops 0.98% 18

Open gawala milk 90% 12-14

Direct to home 0.02% 15-18

Consumption Estimates for 1999-2000

Annexure 10

Product (× 103 t)

Fresh milk 1006

UHT* milk 69

Butter 60

Ghee 177.04

Other dairy products 82.5

Demand for Milk In 2010

Annexure 11

Products (× 103 t)

Fresh and boiled milk 25,604

Dry and condensed milk 68

Butter 165

Ghee 327

Total (fresh milk equivalent) 36,900

Collection Of Milk

Annexure 12

FARMER

DODHIES VILLAGE MILK

COLLECTOR

MINICONTRACTO

R

SUB CENTER

MAIN CENTER

BIG SUPPLIER

HALEEB FOODS

LTD

HFL Collection Area

Annexure 13

Sr. No. Milk Collection Zones1 Arifwala2 Bahawalnagar3 Bahawalpur4 Bhowana5 Mian Channu6 Haveli7 Jhang8 Pakpattan9 Okara10 Rahim Yar Khan11 Shah Jewna12 Narowal13 Upper Sind14 Lower Sind

Layout Scheme Of Production

RAW MILK

SEPARATIONCLARIFICATION

SKIMMED MILK CREAM

EVAPORATION PASTEURIZATION PASTEURIZATION

DRYING

BACING

UHT

FILLINGBOTTLES

POSTSTERLIZATION

LABELING

CARTONING

FILLINGTETRAPACK

TRAYPACKING

UHT

FILLINGTETRAPACK

TRAYPACKING

JUICES

BLENDING

BUTTER

GHEE WRAPPING

FILLING

CARTONING

Annexure 14

UHT Treatment Plant

Annexure 15

“Candia”

Milk testing

Milk collection Milk Reception Weighing & Storage

U.H.T Standardization

Milk Testing

Pasteurization

Aseptic Filling

Milk Testing

PLE Warehouse

Bottle Plant Post sterilization Labeling

Flow Diagram of Butter

Annexure 16

Pasteurized Cream (4 – 6c)

Churning Action

Buttermilk Separation

Butter Washing

Trolleys

Cold Storage (3 – 4c)

Flow Diagram Of UHT Cream

Annexure 17

Milk

Separator

Balance Tank

Regeneration No 1

Regeneration No 2

Heating Section

Chilling(less than 10c)

Standardization

UHT

Packing

FLOW DIAGRAM FOR TROPICO FRUITS DRINK

Annexure 18

Reception of raw material

Mixing of ingredients

Batch standardization

Pasteurization

Aseptic filling

Tray packing

Warehouse

Distribution

Flow Diagram Of Good Day Juice

Annexure 19

Reception of raw material

Mixing of ingredients

Batch standardization

Pasteurization

Aseptic filling

Tray packing

Warehouse

Distribution

FLOW OF PLE

Annexure 20

Final pack

Conveyer

Tray packing

Shrink-wrap

Stacking

Warehousing storageAt ambient temperature

Dispatch / loading toTrucks for distribution

Unloading atDistribution

end

Trays

PolyFilm

Aseptic Filling

Annexure 21

Paper Loading

Strip applicator

Hot H2O2Application &Evaporation

Sealing

Final folderFinal shape of pack

PLE

H2O2

Storage

Removal of poly

Paper reel storage

UnloadingFrom trucks

H2O2Discarded

De shapedPack

Breaking

Filling

Compact Treatment Plant

Annexure 22

Wastewater Treatment Waste Water

Primary setting

Fat Trap

Extra Sump Balancing Tank

RECOMMENDATIONS

During my stay I made some observation, which are reducing profit and consuming

company assets and are creating barriers in company progress, either directly or by

distributing working staff. I wish to analyze that. These are as under:

1. Observing strict control of process parameters can minimize losses of finished

products, proper handling of packed products, proper storage, and strict laboratory

checking and control.

2. May a major problem in recycling of products; it is largely due to low weight,

loose packing, or improper packing.

3. Automatic machine should install here which not only works continuously but

also has greater efficiency.

4. For emergency help and treatment, it is better to maintain a dispensary in factory

premises and higher a doctor, either full time or part time.

5. Better communication enhances the work efficiency and lead to work done at a

right time.

6. Mainly focus on their existing (SBU) rather putting more effort on coming

(NPD).

Bibliography

Mr.Atif Iqbal, “Production of UHT milk, Cream, Yogurt, Labban, Ghee, Juices, Candia”.

(13 September 2006)

Mr.Arshad Bhatti, “R & D Department Function”. (20 September 2006)

Mrs.Qudsia Bano, “Quality Policy”. (20 September 2006)

Profile of the company [cited 22 September 2006]http://www.haleebfoods.com/haleeb/QS_company_profile.php

Market share of Haleeb foods limited [cited 03 October 2006]www.pakistan.gov.pk/divisions/industriesandproduction-division/media/SectorsFile.pdf -

Format of bibliography [14 November 2006]http://www.google.com.pk/format/bibliography

Conclusion

In the end, I would to conclude my report by saying that Haleeb Foods Limited is

considered to be No 1 Pakistan packages growing Food Company having a long product

range which makes them different from their competitor and achieved an appreciation to

be as “First Mover” and recently contracted with DuPont liquid packaging industry

shows that they are not dependent on only one packaging industry. And there is a great

scope for establishing an efficient milk collection system and refrigeration and

transportation facilities. This will offers opportunities to other foreign investors to

establish a joint venture for the production of dairy products, particularly dried milk and

infant formula milk for which great demand exists in the neighboring countries like Iran,

UAE, and Saudi Arabia.