SUMUL DAIRY

INTRODUCTION OF THE INDUSTRY

CHAPTER CONTENT:-

1.1 HISTORY

1.2 INDUSTRY DETAIL

1.3 MARKET SHARE, LEADERS AND PLAYERS

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SUMUL DAIRY

1.1 HISTORY

Beginning in organized milk handling was made in India with

the establishment of Military Dairy Farms.

Handling of milk in Co-operative Milk Unions established all

over the country on a small scale in the early stages.

Long distance refrigerated rail-transport of milk from Anand

to Bombay since 1945.

Pasteurization and bottling of milk on a large scale for

organized distribution was started at Aarey (1950), Calcutta

(Haringhata, 1959), Delhi (1959), Worli (1961), Madras

(1963) etc.

Establishment of Milk Plants under the Five-Year Plans for

Dairy Development all over India. These were taken up with

the dual object of increasing the national level of milk

consumption and ensuing better returns to the primary milk

producer. Their main aim was to produce more, better and

cheaper milk.

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SUMUL DAIRY

1.2 INDUSTRY DETAIL:

Dairy is a place where handling of milk and milk products is done

and technology refers to the application of scientific knowledge for

practical purposes. Dairy technology has been defined as that

branch of dairy science, which deals with the processing of milk and

the manufacture of milk products on an industrial scale.

Dairy industry is one of the industries, which plays a dynamic role in

India's agro-based economy. Dairy farming includes breeding and

care of milk yielding cattle, procuring milk and processing of milk

into a variety of dairy products. A dairy product is a major exporting

industry and earns considerable foreign exchange for the country.

In 1946, the foundation of Anand Milk Union Ltd (AMUL), led to the

development of a better organized dairy industry and gave

momentum to education in dairying in India.

During the earlier years, each household in those countries

maintained its ‘family cow’ or secured milk from its neighbour who

supplied those living close by. As the urban population increased,

fewer households could keep a cow for private use. The high cost

of milk production, problems of sanitation etc., restricted the

practice; and gradually the family cow in the city was eliminated and

city cattle were all sent back to the rural areas.

Gradually farmers within easy driving distance began delivering milk

over regular routes in the cities. This was the beginning of the fluid

milk-sheds that surround the large cities of today. Prior to the 1850s

most milk was necessarily produced within a short distance of the

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SUMUL DAIRY

place of consumption because of lack of suitable means of

transportation and refrigeration.

In developed dairying countries such as the U.S.A., the year 1850 is

seen as the dividing line between farm and factory-scale

production. Various factors contributed to this change in these

countries, viz. concentration of population in cities where jobs were

plentiful, rapid industrialization, improvement of transportation

facilities, development of machines, etc. whereas the rural areas

were identified for milk production, the urban centres were selected

for the location of milk processing plants and product manufacturing

factories. These plants and factories were rapidly expanded and

modernized with improved machinery and equipment to secure the

various advantages of large-scale production. Nearly all the milk in

the U.S.A. before 1900 was delivered as raw (natural) milk. Once

pasteurization was introduced, it developed rapidly. Mechanical

refrigeration helped in the rapid development of the factory system

of market milk distribution.

Dairy industry, now a highly specialized field today involves

production, procurement, storage, processing and distribution of

dairy products. The main jobs are in production and

processing. Production process includes the collection of

milk, breeding of high yielding cattle and taking care of the animals.

Dairy Scientists are employed to cover the production aspect of the

industry. They conduct experiments to determine the effects of

different kinds of feeds and environmental conditions on the

quantity, quality and nutritive value of milk produced. They also

research breeding to improve dairy breeds, feeding and

management of dairy cattle.

In India, dairying has been practised as a rural cottage industry

since the remote past. Semi-commercial dairying started with the

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SUMUL DAIRY

establishment of military dairy farms and co-operative milk unions

throughout the country towards the end of the nineteenth century.

The Indian Dairy Industry has made rapid progress since

Independence. A large number of modern milk plants and product

factories have since been established. These organized dairies

have been successfully engaged in the routine commercial

production of pasteurized bottled milk and various Western and

Indian dairy products. With modern knowledge of the protection of

milk during transportation, it became possible to locate dairies

where land was less expensive and crops could be grown more

economically.

In the year 1939 Sardar Vallabhbhai Patel went and meet the

farmers of Anand and told them that for the trade of milk the dairy

was necessary. At that time a person named Tribhuvandas Patel

came forward to take the leadership. During that time there was

only one dairy “POLSUN DAIRY” which belongs to British’s and

they use to give very less price for milk to the India Milkmen. In

order to support the Indian farmers “AMUL DAIRY” was established

in the year 1946 DDR. Kurien was appointed at this dairy. Dr.

Kurien along with Tribhuvandas Patel took the leadership. Indian

becomes independent in the year 1947. in the meantime AMUL

Dairy got order from the WHO to produce milk Powder from buffalo

milk. Dr. Kurien & Mr. Dalaya found the technique of producing milk

from buffalo milk. After booking at this Lal Bahadur Shatri took the

visit of Ajampur village and promised them to provide with more

money fro the systematic development of the dairy industry. For the

proper development of the dairy industry NDDB was established at

Anand. NDDB started operation – 1 programmer for all dairies in

1971-72 in the year 1977 operation Flood-2 started. Transportation

machinery & pressmen of milk at low cost and give importance. In

the year 1990-operation flood-3 started. Here the farmers were,

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SUMUL DAIRY

made aware about their right & responsibilities high productivity of

milk at low cost & so the co-operatic of development programs

started.

1.3 MARKET SHARE, LEADER AND PLAYERS:

There has one dairy co-operative society exist in every district of

India and it may not be more than one in one district as per

government regulations. But in Surat district there are two dairy co-

operative societies 1) Sumul & 2) Chauryasi.

In Surat district Sumul dairy is market leader in sells of milk. It offers

many types of milk. It sells milks in the brand name of AMUL. And

Amul dairy is India’s largest dairy industry and market leader of milk

and milk products. Amul dairy also exports many products to

abroad.

In Surat district more than 35% of total populations use sumul

brand milk.

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INTRODUCTION OF THE COMPANY

CHAPTER CONTENT:

2.1 COMPANY DETAILS

2.2 MISSION AND VISION STATEMENT OF SUMUL

2.3 ACHIEVEMENT OF SUMUL

2.4 LICENSES FOLLOWED BY SUMUL

2.5 OBJECTIVES OF SUMUL

2.6 SUMUL AT A GALANCE

2.7 MILESTORE OF SUMUL

2.8 GROWTH PLAN OF SUMUL

2.9 DETAILS OF PROMOTERS AND OWNERS

2.10 ORGANISATION STRUCTURE

2.11 DETAIL OF COMPETITORS IN MILK PRODUCTS

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SUMUL DAIRY

2.1 Company Details:-

In the initial stage of 20th Century, Private Milk Traders were

monopolizing the Milk market and use both the Milk Producers and

Consumers alike for their own profit. Procurement price of milk was

very low and used to be fixed by such traders called “Traditional

Bhatia’s”. In addition to this, the price was fluctuating from time to

time at their sole discretion. The income of the producers from milk

was very low and they had no incentive for modern dairy farming.

The farmers felt indignant (resented) the system, but they were

helpless in the face of this traditional constraint and their own lack

of resource less ness. Hygiene and pure milk was almost unknown

in the market. As a result, better quality of milk was practiced by the

traders to meet the growing demand of milk in the city.

During the year 1948, Late Shri Jagjivande R. Patel, popularly

known as “DASKAKA”, brought framers of Olpad Taluka under the

ambit of a Co-operative Society, which was registered on 01-04-

1949 as Takarma Group Co-operative Milk & Vegetable Marketing

Society Ltd. This was established in order to face challenge of

fanne, which was the base of the solid foundation of Surat District

Co-operative Milk Producers’ Union Ltd., popularly known as

“SUMUL”.

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SUMUL DAIRY

Surat District has been a Pioneer in India in challenging trade in

Cotton and Milk, through co-operatives. The Surat District Co-

operative Milk Producers’ Union Limited, popularly known as

“SUMUL” came into existence on 22nd August, 1951. SUMUL is

trade name literally meaning ‘Sound Price’. Sumul was established

in order to salvage the poor producers from the clutches of private

traders. Organisation and integration of procurement, processing

and marketing of milk and milk products by the producers

themselves on a sound co-operative line. This also ensured

elimination of middleman equitable distribution of benefits to Rural

Milk Producers and indirectly to urban milk consumers as well. It

also discharged its most important obligation to help the producers,

increase milk production by providing them all essential inputs and

extension services at their door-step at most economic rates.

A real break – through for synthesis and crystallization of SUMUL

came in 1966, with the approval of its Dairy Project at cost of Rs.

77.47 lacs under the Swedish Aid Programme. The State

Government also generously provided Rs. 74.28 lacs in the form of

subsidy, loan and share capital. The National Dairy Development

Board, under the stewardship of Dr. V. Kurien, designed and

erected the new Dairy Plant to cope – up with the targeted

increases in milk procurement in the succeeding years. The keen

interest and sold support of Dr. V. Kurien, right from 1951 till date

played an important role in bringing SUMUL to its current status.

The formal commissioning of the Pasteurization Plant on March

17,1968 was a turning point for SUMUL.

The BOARD OF DIRECTORS is 13 elected members from the 13

talukas of SURAT district and they from among themselves elect

the CHAIRMAN. Presently Shri MANUBHAI A. PATEL, the

CHAIRMAN and Shri P.R. PATEL are the MANAGING DIRECTOR

of SUMUL DAIRY.

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SUMUL DAIRY

The total numbers of SUMUL employees are 1117 besides the

contract workers. Currently the co-operative is on to TOTAL

QUALITY MANAGEMENT drives to improve the overall productivity

of the co-operative.

SUMUL has three chilling centers at BAJIPURA, NAVIPARDI and

UCHHAL for ensuring safe delivery of raw milk to SUMUL where

the milk is processed and packed in to various types liquid and by

products. To improve the nutritional feed given to the cattle at the

village level, the co-operative has established a cattle-feed factory

at CHALTHAN. SUMUL has also an oil packing station at

CHALTHAN (job work for GCMMF) where it packs double refined

filtered oil (repressed and mustard oil) in semi-packs to be sold in

various parts of the nation. The dairy also has CO-OPERATIVE

DEVELOPMENT CELL as VERTINARY CELL to provide

educational and technical medical support for better animal

productivity at the village or DCS level.

The area of operation of SUMUL is the entire district of SURAT.

The present milk procurement of 160,929,736 liters of milk annually

makes it the third largest UNION in the STATE after the KAIRA

DAIRY (AMUL DAIRY) and MEHSANA DAIRY. It has the record of

paying the highest milk procurement price in INDIA to its producers.

SUMUL is the UNION and its surplus milk marketing in the state

and outside is handeled by the GCMMF (GUJARAT MILK

MARKETING FEDRATION ANAND) under the ANAND PATTERN,

as envisioned by the illustrious Dr. KURIEN. THE NATIONAL

DAIRY DEVELOPMENT BOARD (NDDB) is a NATIONAL LEVEL

ORGANIZATION helping the co-operatives movement development

in terms of resources (financial, technical and otherwise).

SUMUL is holding a strong BRAND EQUITY in SURAT DISTRICT

and commands more than 70 percent of the liquid milk in SURAT

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SUMUL DAIRY

CITY. To make the distribution system fast and to deliver milk in

time, they have as many as 61 milk transportation routes and 1531

agents (1386 regular and 145 full time).

The present market of SURAT for liquid milk is saturated to around

3.8 lacks litters per day. On the other hand milk procurement is

presently around 4.5 lacks litters. The supply-demand gape

between raw milk and liquid milk sales has increased to a level

where the daily milk surplus exceeds 1 lack litters. This has

necessitated the active development of the “BY-PRODUCT”

market. Products thereby introduced namely “PANEER”, “GHEE”,

“FLAVOURED MILK (JOME)”, “SWEETS”, “SHRIKHAND”, “LASSI”,

“BUTTER”, etc.

SWEETS are profitable by-product the market scope of which is

reasonably good. The present sales volumes of sweets are

because of its taste, quality and freshness.

Surat Milk Union Limited or SUMUL, which is now renamed as The

Surat District Co-operative Milk Union Ltd, is one among the 12

district unions which acts as manufacturing units of dairy products

for Gujarat Co-operative Milk Marketing Federation Limited, the

marketers of AMUL and DHARA brand of products.

Surat District has been a Pioneer in India in channeling trade in

Cotton and Milk through co-operatives. Before SUMUL stepped in,

traditional Private Milk Traders were having complete control and

authority (dominant) over the area.

On the other hand, Dairying was not very much popular with tribals

(a major rural population in the District). There was no infrastructure

existed for milk marketing in their talukas, inaccessibility to their

villages as well as taboos regarding keeping of buffaloes prevented

the entire population of tribals from considering dairying as a source

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SUMUL DAIRY

of income. The tribals kept their cows to produce bullocks rather

than milk, which was insufficient even to nurse the calves. Most of

the tribals were unaware of the usual milch breeds.

Hygienic and pure milk was almost unknown in the market. To meet

the growing demand of milk in the city, these traders were adding

some other things to make inferior or lesser quality of milk. To

salvage the poor producers from the clutches of these Private

Traders, Organisation and integration of procurement, processing

and marketing of milk and milk products by the producers

themselves on a sound co-operative line was essential; this would

also ensure elimination of middlemen, equitable distribution of

benefits to Rural Milk Producers and indirectly to urban milk

consumers as well.

2.2 Sumul’s Mission & Vision Statement:-

“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH

COMMITMENT TO CONSUMER DELIGHT AND RESPECT FRO

ALL. WE BELIEVE IN GROWTH AND CONTINUOUS

IMPROVEMENT THROUGH TEAMWORK, TRUST &

EXCELLENCE WITHOUT COMPROMISING OUR HONESTY AND

INTEGRITY”

It is quite obvious from the mission statement of the Sumul; the

organization is committed to customer satisfaction and believes in

providing the highest quality of product to them. Infect, for ensuring

highest quality product, it has already put into practice TPM and

TQM tools in the organization besides many Quality Circle (QC)

and Small Group Activity (SGA) operating in the organization to

achieve the vision and mission.

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2.3 ACHIVEMENTS OF SUMUL:-

SUMUL is working for 54 years in Surat city. SUMUL sells milk and

milk products. In this 54 years time organisation has won many

awards and prizes which are mentioned in the following table

yearwise:

AWARDS RECEIVED BY SUMUL:

Year Award Title Awarded by

1988-89 National Productivity AwardNational Productivity

Council, New Delhi

1989-90 Sardar Patel Saksharta AwardSouth Gujarat

University, Surat

1990-91 National Productivity AwardNational Productivity

Council, New Delhi

1992-93Jamnalal Bajaj fair Practice

Award

Council for Fair

Business Practice,

Mumbai

1998-99.Certificate of merit from National

Productivity Council

National Productivity

Council, New Delhi

1999-00.

Appreciation Award for Total

Productivity maintenanceQuality Circle Forum

of India, Vadodara

1999-00.

Total Productivity maintenance

Award

Ahmedabad

Management

Association,

Ahmedabad

2000-01 Quality Excellence Award Surat Management

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SUMUL DAIRY

Association, Surat

2000-01

National Productivity Award

(Dairy Development &

Production Sector) - 2nd

National Productivity

Council, New Delhi

2000-01Jamnalal Bajaj Fair Business

Practice Merit certificate

Council for Fair

Business Practice,

Mumbai

2001-02 Manager of the year 2001Surat Management

Association, Surat

2001-02Birla Cellulosic Award for Small

Group Activity

Birla Cellulose,

Kharach

2001-02

National Productivity Award

(Dairy Development &

Production Sector) - 2nd

National Productivity

Council, New Delhi

2002-03Management Excellence Award

- 2002

Surat Management

Association, Surat

2002-03IMC Ramkrishna Bajaj Award

Merit Certificate 2002

Indian Merchant

Chamber, Mumbai

2003-04.Enfuse National Award For

Energy Efficiency Excellence

Energy & Fuel

Users Association of

India, Chennai

2003-04 Best Organisation of the DistrictSurat Jilla Sahakari

Sangh, Surat

2003-04Best Garden of the Company of

Surat City

Surat Municipal

Corporation, Surat

2004-05 Award of ExcellenceFederation of

Gujarat Industires

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SUMUL DAIRY

2004-05 Information Technology Award

Scholar, President

of Science

Technology and

Member of State

Govt. Pro. Dr. M. G.

K. Menon, at Delhi

2004-05Intelligent Enterprise Award –

2004

Infra Structure –

Retail and

Consumers

Products, at Sri

Lanka

2004-05C Subramaniyam International

Award

United Nations of

Organisation (UNO)

2004-05

Best of Best Winner Team

Award For ETP Less Load on

Intel Presentation

Sadar Presetation

2004-05

Shield For The Presentation of

Use Max. Space in Main Stores

By Reducing Storage Space

(won at 2nd rank)

-----

(Awardes taken from President and Prime minister of India at Delhi.)

2.4 LICENSES FOLLOWED BY SUMUL:-

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The organisation follows different licenses which are as follows:

ISO 9K2K

HACCP

MMPO

ISI

AGMARK

PFA (Prevention of Food regulation Act)

ISO14000

ISO 4000

2.5 OBJECTIVES OF SUMUL:-

The SUMUL Dairy was established with the following objectives:

To provide guaranteed remunerative milk market round the

year for surplus milk.

To provide maximum return to producers.

To provide good quality Milk and Milk Product to consumers.

To increase milk productivity at most economic rate by

providing technical input services to the producers.

2.6 SUMUL DAIRY AT A GLANCE:-

1 REGISTRATION NO. P.D:688

2 DATE OF REGISTERATION 22nd August, 1951

3Date of commissioning of

Pasteurization Dairy PlantMarch, 1968

4 Dairy Plant capacity at the time of 50,000 liters. per

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commissioning day

5 Present capacity of Dairy Plant6,00,000 liters. per

day

6 Milk Powder Drying capacity 12.5 MTs. per day

7Milk Chilling Plants along with

capacity of Milk ChillingBajipura

3,00,000

liters. per

day

Uchchhal

1,00,000

liters. per

day

Navi Pardi

2,00,000

liters. per

day

Chasvad30,000 liters.

per day

Dediapada30,000 liters.

per day

8 No. of Milk Producers Co-op. 956

9Total membership and Nos. of

Primary Milk Producers'

Co - operatives: Society Membership

Tribals & Non-Tribals 1,041 2,18,975

10Milk Co – operatives Managed by

women81

11 No. of Mobile Veterinary Clinics 22

12 No. of Veterinarians 40

13No. of A.I. (Artificial Insemination)

Centres140

14 Cattle feed Mixing Plant capacity 300 Mts. per day

15Mineral Mixture Plant: Production

and sale:

45000 packets for

Milk Producers

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2.7 Milestone of Sumul Dairy:

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2.8 Growth Path of Sumul Products:

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Products Year

Milk distribution in bottle 3-5-1968

Establishing member of GCMMF 9-7-1973

Milk distribution in polybag 7-12-1978

Butter milk distribution in polybag 1-6-1987

Whole milk (SUMUL YA) in bulk 1987-88

Whole milk (SUMUL YA) in 500 ml 1991

Homogenized toned milk in 500 ml 1994

Homogenized toned milk in 200 ml 1995

Flavor milk 1993

Paneer 1994

Sweets 1994

Shrikhand 1995

Masala Chaas 15-8-99

Flavored milk in 200 ml pouch 15-8-99

Pasteurized milk in 5 liter pack 1998

Masala chass, methi chass 2000

Pizza & Ice-cream 2001

Rasgulla, Gulab Jamun,Sugar & Cow milk 2002

Tea 2003

Glabletop Packing for Milk (Plane & Flavoured)

2004

Buttermilk in ESL Packing 2005

Cold Coco 2005

2.9 DETAILS OF PROMOTERS AND OWNERS:-

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SUMUL DAIRY

NO. NAME ADDRESS AND PHONE NO.

1 Shri Manubhai Amthabhai Patel

(Chairman)

Representative, Nihali Dudh Utpadak

S.M. Ltd, At: Nihali, Po:Dholikui,

Tal: Mahuva - 394250.

Res: (02625-258158)

MO.98241-10316

2 Shri Sudambhai Raghunathbhai Patel

(Vice Chairman)

Representative, Velda Vibhag Dudh

Utpadak S.M. Ltd., At: Velda,

Tal: Nizar 394370.

Res: ( 02628 ) - 244238 / 244228

3 Shri Chunilal Durlabhbhai Patel Representative, Lotarwa

DudhUtpadak S. M. JIN Ltd,

At & Po.: Lotarwa,

Tal: Vyara - 394 650.

Res: (02626) - 222446 / 220017

4 Shri Arvindbhai Singabhai Gamit Representative, Pipalkuwa Dudh

Utpadak S.M.Ltd, Pipalkuwa,Po:

Pipalkuwa,

Tal: Songadh – 394660.

Res: 02624 – 251088

5 Shri Jayeshbhai Natvarbhai Patel Representative, Delad Dudh Utpadak

S.M. Ltd, At: Delad Po.: Sayan,

Tal: Olpad – 394540.

Res: 02621 – 242362

6 Shri Jitendra Dhirajlal Desai Representative, Uchchal Dudh

Utpadak S.M. Ltd, At & Po.: Uchchal,

Tal: Uchchhal – 394375.

Res: 02628 - 231106/231123

7 Shri Ratilal Somabhai Master Representative, Surat Dudh Utpadak

M. Ltd, 40-A, Patelnagar, A.K. Rd,

Surat,

Tal: Choryasi - 395008.

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SUMUL DAIRY

Res: 0261 – 2543404

8 Shri Manojbhai Naranbhai Patel Representative, Shekhpur Dudh

Utpadak S.M. Ltd, At: Shekhpur

Po.: Sayan,

Tal: Kamrej – 394180.

Res: 02621 – 242526

9 Shri Shivabhai Babubhai Patel Representative, Naugama Dudh

Utpadak S.M. Ltd,

At: Naugama (Nani), Po.: Simodra,

Tal: Mangrol – 394410.

Res: 02623 – 233288

10 Shri Ramanbhai Ukadiyabhai Gamit Representative, Zankhala Dudh

Utpadak S.M. Ltd,

At & Po.: Zankhala,

Tal: Mandvi – 394160.

Res: 02623 – 221396

11 Shri Bhupendrabhai Ratilal Desai Representative, Valod Dudh Utpadak

S.M. Ltd,

At & Po. Tal: Valod – 394640.

Res: 02625 – 220151

12 Shri Shantilal Kalyanjibhai Patel Representative, Bagumra Dudh

Utpadak S.M. Ltd,

At & Po.: Bagumra,

Tal: Palsana – 394315.

Res: 02622 - 263308/263309

13 Shri Arvindbhai Bhagvanjibhai Patel Representative, Rampura Dudh &

Shakbhaji U.S.M. Ltd. At.Rampura,

Po.: Varad,

Tal: Bardoli – 394602.

Res: 02622 – 220431

14 Shri Parsottambhai Mundiyabhai Padvi Representative, Umarda Dudh

Utpadak S.M.Ltd. C/o., At & Po.:

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SUMUL DAIRY

Umarda,

Tal: Umarpada.

C/o.: 02629 – 253474

15 The District Registrar Representative, The Registrar, Co-op.

Societies, Gujarat State,

Gandhinagar.

Off: 0261 – 2472051

16 Shri P. Chellapa Representative, N.D.D.B., Anand.

17 Shri K. M. Zala / S. T. Desai Representative, GCMMF Ltd, Anand.

Dr.

18 Shri Pramthesh Rameshbhai Patel Managing Director, Ex. Officio

Member Secretary, SUMUL DAIRY,

Surat.

Res: 0261 - 2422180/2422137

2.10 ORGANISATION STRUCTURE OF SUMUL: -

BOARD OF DIRECTORS

CHAIR PERSON

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SUMUL DAIRY

MANAGING DIRECTOR

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGERS

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR EXECUTIVE OFFICER

EXECUTIVE OFFICER

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

SENIOR ASSISTANT

JUNIOR ASSISTANT

TECHNICIAN – 1 & 2

WORKMAN – 1, 2, & 3

2.11 DETAILS OF COMPETITORS IN MILK

PRODUCTS: -

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SUMUL DAIRY

SUMUL is producing many milk products like ghee, milk powder,

panner, butter, dahi etc. So, there are several competitors in milk

products against SUMUL.

COMPETITORS COMPETITION IN MILK PRODUCT

NESTLE GHEE AND MILK POWDER

BRITANIA DYNAMIX GHEE

AMUL SHREE KHAND, FLAVORED MILK, GHEE

SHUFFLE PANNER

SAGAR GHEE, PANEER, MILK

INDIANA GHEE

VARDHAMAN GHEE

GOKUL GHEE

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SUMUL DAIRY

OBJECTIVES OF THE PROJECT

OBJECTIVES:

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SUMUL DAIRY

We have chosen this topic in order,

To study functional areas of sumul dairy like Production

department, Human resource department, Marketing

department, Finance department, etc.

To know about dairy industry as a whole and in particularly in

Surat district.

In partial fulfillment of the requirement of the degree of

bachelor of business administration.

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SUMUL DAIRY

METHODOLOGY OF THE PROJECT

METHODOLOGY :

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SUMUL DAIRY

The methodology, which is also known as the systematic

procedure, which is followed for this marketing research project

includes steps which are as follows:-

Problem definition

Development of an approach to the problem

Research Design

Determining the sources of data

Determining the sample design and sample size

Data collection method

Analysis and presentation of collected data

Problem Definition:-

To knowledge and study different functional areas of Sumul

Dairy.

Basically there are two types of data i.e. primary and

secondary: -

Primary Data Collection

Secondary Data Collection

Primary Data:

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SUMUL DAIRY

Primary data are those data which are collected for the first time for

the use of project on hand. There are two methods for collecting

primary data are observation & survey.

Primary data collection contains the following two types of methods:

-

1. Observation Method:- It contains Casual

observation, Systematic observation, direct observation and

contrived observation.

2. Survey Method:- It contains Personal Interview,

Telephone Interview and Mail Interview.

Secondary Data:

It can be collected from internal as well as external sources

1. Internal Source Various internal sources like employee,

books, sales activity, stock availability, product cost, etc.

2. External Sources Libraries, trade publications, literatures, etc

are some important sources of external data.

Primary data are used for the core purpose of the project.

And this Primary data has been gathered by survey method.

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SUMUL DAIRY

LIMITATION OF THE PROJECT

LIMITATIONS:

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SUMUL DAIRY

As a lack of knowledge and experience we couldn’t find

proper methodology of project.

We have not enough knowledge to conduct research and

survey that’s why we couldn’t conduct survey for Sumul

products in Surat district.

As Sumul is co-operative organization we got proper support

of staff and we gathered lot of details and information but

because of plenty of data we got confused what to put and

what not to.

We have put only important information of the project.

As organization is vast spread and have many units and

plants we couldn’t manage to visit and study all of them.

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SUMUL DAIRY

FINDING AND ANALYSIS OF

RESEARCH

CHAPTER CONTENTS:-

A) PRODUCTION DEPARTMENT

B) HUMAN RESOURCE DEPARTMENT

C) MARKETING DEPARTMENT

D) FINANCE DEPARTMENT

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CHAPTER CONTENT:

6.1 ACTIVITIES OF PRODUCTION DEPARTMENT

6.2 PRODUCTION PLANNING

6.3 HOW PRODUCTION PLAN IS CONVERTED IN MATERIAL REQUIREMENT PLAN AND ULTIMATLY IN PURCHASE PLAN?

6.4 PLANT LOCATION

6.5 MATERIAL HANDELING EQUIPMENTS

6.6 CLASSIFICATION OF THE INVENTORIES

6.7 PURCHASE

6.8 MICRO MOTION STUDY

6.1 ACTIVITIES OF PRODUCTION DEPARTMENT:-

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Along with the Production various other activities are perform by the

Production Department. All these activities are the part of Production

department. These activities are as follow:

1. Stores Management.

2. Quality Checking.

3. Packing of Finished Goods.

4. Printing on Packed Product.

5. Dispatching of Goods.

6. Washing and Cleaning of Machine & Equipments Regularly.

7. Maintain the Machine and other equipments.

6.2 PRODUCTION PLANNING:-

The Production Manager as per the daily demand of the Sales Manager

and Marketing Manager does production Planning. After this planning is

done the order is given to the Senior Executive Officer of the Production

Department and Senior Executive Officer organise planning process.

Production planning is based on the daily requirement of

the product in the current market. If the requirement of the product is high

then Production planning is done daily and very carefully. Everyday the

Parlor Manager gives their daily demand to Sale and Marketing Manager

then Sales and Marketing Manager give that demand to the Production

Manager and after getting that demand production manager done planning

for producing demanded product. As per the demand of the product

production manager also plan for the raw material, packing material,

dispatching material, etc. and send that demand to the Store Department.

Production Planning is basically done for daily requirement

of the product. But sometime the demand of the product is weekly or

monthly so production plan is done weekly or monthly. For Example:

THE GUJARAT MILK MARKETING FEDERATION (GMMF) gives

their demand every week so the production planning for the demand of

GMMF is done on the weekly bases.

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6.3 HOW PRODUCTION PLAN IS CONVERTED IN

MATERIAL REQUIIREMENT PLAN &

ULTIMATELY IN PURCHASE PLAN?

In production area the strong system procedure is followed. Every process

has their own Control charts, Variance analysis, yield analysis, Cost

analysis, Quality analysis, and Performance analysis. All packing material

purchase plan is develop by concern process in charge and send their

demand to store department. Store department is verifying it with

specifications. They also verified stocks and if any of the stock is in scarce

then Store manager send the order of the scarce material to the Purchase

Department. In Purchase Department Purchase Manager cross-examine the

order send by the Store Manager. Then Purchase Department generated

inquiries for particular demanded material and invites the sample of the

material. Then Purchase Manager places the order to concern Quality and

performance of the particular supplier. Thus, the production plan is

converted into material requirement plan and after that in purchase plan.

6.4 PLANT LOCATION:-

Surat city is located in South Side of Gujarat. It covers total area of Surat

is 111.16 sq.km. Most of Diamond, Textile, etc. Business are well

establish in SURAT city. SUART district covers the areas like

OLPAD, NAVI PARDI, MANGROL, CHASVAD, NIZAR, UCHCHAL,

VYARA, VALOD, MAHUVA, PALSANA, CHORYASI, CHALTHAN,

BARDOLI, BAJIPURA, MANDAVI, KAMREJ and all near by villages.

SUMUL DAIRY is located near the Railway Station Road in Surat. It

covers 15,000 acre land. SUMUL provides milk collection facilities at the

producer’s door in each village cooperative, wherefrom milk is speedly,

efficiently and economically transported twice daily to its dairy plant,

chilling centers for processing and marketing. Currently 97 milk routes are

playing, keeping the criteria of optimum coverage of marketable surplus

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SUMUL DAIRY

required distance safe time limit and minimum overlapping between the

routes on economical grounds. Since the milk procurement system has

been extended far and wide in the entire district, SUMUL have five

chilling centers at BAJIPURA, UCHCHAL, NAVI PARADI, CHASVAD

and DEDIAPADA at a distance of 50, 105, 25, 110, 140 km. Respectively

from Surat city which are operated with their full capacities. And the

chilled milk from there is transported to the Dairy Plant by SUMUL’S

insulated Milk Tankers as frequently as wanted. Keeping the overall

annual milk source to a bare minimum of 0.75% of the total milk procured.

These 5 chilling centers have provided equal opportunities of milk

marketing to the distantly inhabited tribal milk producers of else they

would have been obliged to dispose of their milk to the middlemen at very

low prices. They sell privileged milk uniformly as the other additional cost

of chilling is being borne by SUMUL.

SUMUL has procured 15,04,61,760 kg milk during the year out of which

10,09,44,886 kg i.e. 62.52% constituted buffalo milk and 6,65,91,094 kg

i.e. 37.50% constituted cow milk. Achievement in milk procurement is due

to adoption of Animal Husbandry as an effective tool for economic growth

by milk producer members and their selfless devotion towards milk

cooperative movement and also adoption of business approach by

SUMUL. SUMUL has paid on an average Rs. 215/- per Kg fat to its

milk producers/farmers. It has attained self- sufficiency in its milk

requirement. Now SUMUL is in a position to surplus milk to mother dairy

of Gujarat Cooperative Milk Marketing Federation Limited, Gandhinagar

and other District Cooperative Milk Unions in Gujarat.

6.5 MATERIAL HANDELING EQUIPMENTS:-

Material Handling is defined as Controlled movement of material, from

receipt, through storage and production and up to the shipment f finished

product. SUMUL use following classes of equipments for material

handling:

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1. On the basis of the form and nature of the product.

2. On the basis of the path of the movement.

3. On the basis of the degree of automation.

4. On the basis of basic mechanism of equipments.

5. On the basis of source of power.

6. On the basis of starting point & destination of transportation.

SUMUL use the following types of equipments for material handling:

1. Pipelines

2. Tanks

3. Crates

4. Cranes

5. Cans

6. Trucks

7. Tempos

8. Conveyor Belts

9. Bucket Conveyor

10. Trolley for Crates

11. Trolley for Cans

12. By Manually

13. Plastic Tubes

14. Glass Bottles

6.6 CLASSIFICATION OF THE INVENTORIES:-

SUMUL is classified the Inventory on the bases of two types which are as follows:

1. Raw Material

2. Finished Goods

The Inventory in Raw Material includes followings:

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a) Material use in Packing

b) Spare parts of Machinery

c) Computer Hardware

d) Special Chemical use in quality checking laboratory

e) Special Chemical use in packing finished goods

f) Stationary product

g) Electrical equipments

h) Edible essence and colors

The Inventory in Finished Goods includes followings:

a) Milk

b) Paneer

c) Ghee

d) Flavored Milk

e) Sweets

f) Shrikhand

6.7 PURCHASE PROCEDURE:-

Store Department is checking quantity of all material and there is a unique

recording system, which is called COMPUTER ORACLE SYSTEM. This

Computer Oracle System is use for generating Indents for required

products. Indents is analysed by Material Manager (MM) and discussed

with concern department and Finally Indents is forwarded to Purchase

department. Concern Department has to receive the samples of required

material by filling of Material Issue Docate (MID) form to Store

Department. Concern Department is approved purchase material as per the

Sample of their own material. Store Department is coordinating between

Concern Department and Quality Checking Department for final approval

of purchase material. There is one report generated which is called

Material Approval Report (MAR). After making of MAR, Concern

Authority signs it and sends it with bills and challans to purchase

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Department. Purchase Department is verified all documents and send it to

Account Department. After observing all documents Account Department

is making final payment to the party.

DOCUMENTS RELATED PURCHASING:-

The Documents related Purchasing are as follows:

1. Indents

2. Material Issue Docates (MID)

3. Purchase Inquiry

4. Quality Checking Report

5. Material Approval Report (MAR)

6. Order Report

MILK PROCUREMENT SYSTEM:-

SUMUL provides milk collection facilities at the producer's door in

each village cooperative wherefrom milk is speedily, efficiently and

economically transported twice daily (both in the morning and

evening) to its Dairy Plant, Chilling Centers (whichever is nearer) for

processing and marketing currently 81 Milk Routes are playing,

keeping the criteria of optimum coverage of marketable surplus,

required distance, safe time limit and minimum overlapping between

the routes on economical grounds

As the group societies have generally adopted small and non-viable

villages for their upbringing and faster development, they manage to

procure milk economically by transporting other commodities too, side by

side with which they also deal by adjusting the type of vehicle to the actual

need. Since the milk procurement system has been extended far and wide

in the entire district, Sumul's five Chilling Centers at Bajipura, Uchchal,

Navi Pardi, Chasvad & Dediapada site, at a distance of 50, 105, 25, 110

and 146 kilometers respectively from Surat city and are operated in the

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manner that their full capacities (currently 3,00,000; 1,00,000; 2,00,000;

30,000 and 30,000 litres respectively) are fully utilized and the chilled

milk there from is transported to the Dairy Plant by SUMUL’S insulated

Road Milk Tankers as frequently as warranted, keeping the overall annual

milk sourage to a bare minimum of 0.75% of the total milk procured.

These 5 Chilling Centers have provided equal opportunities of milk

marketing to the distantly inhabited tribal milk producers, which aids the

economy of their milk production enterprise or else they would have been

obliged to dispose of their milk to the middlemen at very low prices. These

under-privileged milk producers in the distant remote areas also get the

same price of milk uniformly as the others in the rest of the areas in the

district despite the higher cost of milk transport as the additional cost of

chilling is being borne by Sumul.

By procuring milk from these villages of the District, SUMUL reversed

the trend of negative economy of these milk producers from a milk

production enterprise and implanted the firm roots of a flourishing milk

production economy in these up-coming areas in a uniform manner to

bring these people into the socio-economic main stream of the Country.

Under the agreed terms and conditions of milk transport, various risk such

as spilling or spoilage of milk or damage to milk cans in accident or

sourage of milk due to contractor's delay in the transport or pilferage or

adulteration of milk in transport etc. is borne by the contractors. In non-

approachable villages by road, head-load cost of milk transport is also

borne by the Union. Since the contractors have their regular, assured and

remunerative business in transport of milk, they conscientiously perform

the above task giving rise to least problems of the above nature

consequently, the figures of overall Fat% and SNF% in both buffalo and

cow milk procured by SUMUL during the year, match with normal milk

standards (i.e. buffalo milk 6.8% Fat, 9.0% SNF, cow milk 4.3% Fat,

8.5% SNF) which aids the Union in marketing good quality milk and milk

products.

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MILK CYCLE:-

STEP 1

A Machine milking the Cow at Village level.

(source: photo has taken from CD provided by Sumul Dairy)

STEP 2

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SUMUL DAIRY

Milk Producers' Cooperative Ltd. collects the milk from all the

villages.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

STEP 3

The collected milk is tested against the set standards. That insures

quality of milk being received from the root level.

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SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

STEP 4

The received milk is sold locally as well as transported to the dairy

for the further processing.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

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SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

STEP 5

The milk is tested in dairy lab. No compromises with the quality of

milk being received.

(source: photo has taken from CD provided by Sumul Dairy)

STEP 6

The qualified milk is received at Raw Milk Receiving Dock at Dairy.

(source: photo has taken from CD provided by Sumul Dairy)

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SUMUL DAIRY

STEP 7

Cleaning Process at dairy.

(source: photo has taken from CD provided by Sumul Dairy)

STEP 8

Milk is pasteurized, clarified, and standardized using latest

technological machines & equipments.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

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STEP 9

Milk again tested before being packed in the SUMUL’S Laboratory.

(source: photo has taken from CD provided by Sumul Dairy)

STEP 10

Pouch filling for the last users at the Packing Department at

SUMUL.

(source: photo has taken from CD provided by Sumul Dairy)

STEP 11

Packed milk stored in well-maintained cold storage of SUMUL.

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SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

STEP 12

Milk dispatched for the sales in the market of Surat from the

Dispatch Department in the SUMUL’S trucks.

(source: photo has taken from CD provided by Sumul Dairy)

6.8 MICRO MOTION STUDY :

During the visit to the production plant we have done micro motion

study of a worker whose work was to take the milk pouched from the

machine and the keep them on crate, which uses to come serially on

the belt conveyors. The position of the person was such that it to very

less time.

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The pouches of 500 ml were filled in Polly bags, sealed and ready pouches

were thrown though the pouch-filling machine.

1. First of all we caught the two pouches in one hand and again

two pouches with other hand (5 sec)

2. Then he kept all the four pouches together in the crate coming

over the Belt conveyor. (4 sec)

3. He again tuned and caught all the four pouches with two hands.

(5 sec)

4. And again kept all the four pouches together in the crate

coming over the Belt conveyor. (4 sec)

The entire process was completed in 18 sec.

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TOTAL QUALITY MANAGEMENT :-

SUMUL’S Union has adopted International Standards for Quality

Management. QAS Australia has certified SUMUL’S quality management

systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. By

adopting quality management system, SUMUL’S Union has standardized

all process and procedure system for production of milk and milk products.

As usual, it is easy to design system but difficult to implement it. But with

active Participation and dedication of SUMUL’S workers and staff & with

better leadership & guidance of Board of Directors, Officers, Continuous

training programs under TPM and GMP, SUMUL has successfully

Implemented ISO Standards. At every six months interval, Total Quality

Management System has to be audited and if found proper as per standard

Quality Management norms then certification are renewed. We have

received continuous renewals.

INTERNATIONAL I.S.O – 14001 CERTIFICATION FOR

ENVIRONMENT CONTROL.

Accreditation of ISO 14001 certificate is a testimony of commitment

towards the customers of SUMUL for 100% quality safe milk and milk

products. By complying with Terms and Conditions of ISO 9002, ISO

14001, HACCP, Quality Management and Environment Control, Union

has undertaken various measures for fully automation in their various

production line, installation of Automatic Machinery in various production

line is in progress.

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QUALITY POLICY:-

SUMUL DAIRY developed, Devoted, Dedicated and Motivated

Workforce trained to ensure consistent supply of safe and good quality

milk and milk products to achieve highest level of customer satisfaction.

SUMUL will achieve this by continuous monitoring and upgradation of

producers and processes applying scientific innovations and state of the art

technology, and remain esuriently.

OBJECTIVES OF QUALITY DEPARTMENT:-

The main Objective of SUMUL’S Quality Department is as follow:a) To Understand and Meet Customer Needs.

b) To Develop Competency of employees for continual improvement

of their Performance and Effectiveness.

c) To Demonstrate continual Improvement of process based on

Objectives.

d) To Review food safety and Quality Management System for

Improvement.

e) To apply scientific Innovations and State of Art Technology.

QUALITY ASSURANCE:-

SUMUL believes in Total Quality Management (TQM). it takes almost

care to provide best quality milk and milk products to the customers.

ACTIVITIES OF QUALITY ASSURANCE:-

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Quality Assurance Manager performs following activities:

1. To test the specifications of raw material.

2. To suggest the production department for producing products as

per the parameters tested.

3. To test the parameters of finished products before packing.

WHICH PARAMETERS ARE TESTED IN Q.A. LAB.:-

1. Proteins

2. SNF

3. Fats

4. Acidity

5. Neutralisation

6. Colour

7. Smell

8. Additives

9. Bacterial Percentage

10. Moisture Percentage

11. Flavor

12. Yeast

13. Mold

VALUE ADDITION OF MILK AT DIFFERENT STAGE :-

CLARIFICATION: ~

Milk is clarified to remove unseen dirt and dust or foreign material, which

may be harmful to our body.

PASTEURISATION: ~

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Milk is pasteurized to kill all pathogens (Harmful bacteria) for our body

and this process is ensured through automatic Controller (Flow Diversion

valve) which allow only pasteurized to tank for packing.

CONSISTENCY: ~

SUMUL have certified ISO-9002 Quality System and HAACP (Food

safety) and SUMUL have undergone through Inspection audit,

Surveillance audit. SUMUL have also internal quality audit system for

Continuous Improvement and effectiveness of Corrective action.

STANDARDISATION: ~

Milk is being standardized according to type of milk and set standard as

per ISO and PFA. Standardized Milk is checked through MILKO SCAN

(like Body Scan), which ensure standardization of each constituent of

milk. This type of Machine is available to us only in this region. Small

Organisation cannot have this type of machines because its cost is RS.

30,00,000.

BACTERIOLOGICAL LABORATORY: ~

SUMUL have well established bacteriological Laboratory to ensure safe

milk supply to its valued customer.

STAFF: ~

SUMUL have highly qualified staff that ensures each test and process in

compliance with set standard. Each employee has undergone for TQM

(Total Quality Management), Training and work for Kaizen (continuous

improvement) For Value or Money for Customer.

The whole Process in the dairy is done through SS Pipe only and nowhere

it is touched by hand.

The equipment Cleaning is done through Centralized automatic CIP unit.

The packaging is done through automatic volume control machine with

high accuracy.

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House keeping and Good Manufacturing Practices (GMP) have become

Part and parcel of Routine work.

Each employee working in plant is examined for his health condition by a

group of doctors at regular interval.

PLANT LAYOUT:-

DAIRY PLANT TO MARKET LEVEL:-

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Milk Receiving Testing of Milk

Processing Processing

Processing Packing

Delivery Storage

Market

PROCESS FLOW FROM VILLAGE TO CHILLING CENTRE:-

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Milking by Producer Producer approaching DCS

Collection at DCS Grading & Testing at DCS

Transportation to Chilling Centre

Testing at Chilling Centre Receiving at Chilling Centre

Transportation to Dairy Plant

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CHAPTER CONTENT:

6.9 HUMAN RESOURCE ACTIVITIES

6.10 MANPOWER PLANNING

6.11 RECRUITMENT AND SELECTION PROCESS

6.12 TRAINING AND DEVELOPMENT

6.13 EMPLOYEMENT RELATION

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6.9 HUMAN RESOURCE ACTIVITIES:-

SUMUL believes that the most significant resources are its Human

Resource and SUMUL’S success in the long run depends very

much on the quality of its human resources. Human resources

comprise the aggregate of employee attributes including

knowledge, skill, experience and health, which are presently and

potentially available to the organisation for the achievement of its

goal, objectives and service to the society.

To achieve this and to diffuse the effect of Global Competition,

Sumul has adopted the latest concepts of Management practices

and provided appropriate training with the help of leading institutes

from time to time for up-gradation & development of its Human

resource. Other activities which are followed by the H.R.D. & E.R.

are as follows:

Recruitment and Selection

Performance Appraisal

Promotion

Transfer

Demotion

Welfare Activities

Training and Development

Induction Training

Employee Relation

Motivation System

All the activities of H.R.D. & E.R. Department are done under the

Factory Act. The organisation has to follow all the rules of Factory

Act. If they disobey any rules of Factory Act, The organisation has

to pay penalty.

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6.10 MAN POWER PLANNING PROCESS:-

First of all the organisation follow man power planning process

through which they find man power planning or sources for the

organisation.

The man power process is done by the Managing Director or

Board of Directors.

If the necessities arise in any department of the organisation

then the Head of that department tells to the Managing

Director.

Then, the Managing Director gives response in Yes or No. If

the Managing Director gives response with Yes, then the

Head of that department will follow the recruitment process,

or if the Managing Director gives response with No then they

will stop their process.

6.11 RECRUITMENT PROCESS:-

There are two ways for recruitment process which are mentioned

below:

Internal Recruitment

External Recruitment

Both the types of the recruitment process are used in the

organisation.

INTERNAL RECRUITMENT: ~

Generally internal recruitment is done by the promotion and training

programs which are under taken by the organisation.

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EXTERNAL RECRUITMENT: ~

External recruitment is done by three major types which are

mentioned below:

ADVERTISING: ~

The organisation gives advertisement in the newspapers.

EMPLOYMENT EXCHANGE: ~

With the help of these types of agencies which provide a wide

range of services, counseling, assistance in getting jobs, and

information regarding labour market, labour and wages rates etc.

CAMPUS INTERVIEW: ~

The authorities of the organisation visit the S.M.C. Technical

College at ANAND or educational institutes and arrange the

campus interviews for recruiting best candidates.

SELECTION PROCESS:-

By considering the following steps the selection process is done:

First of all they see the response form the candidates i.e.

how many applications are collected for the job.

Then, they send call letters to qualified and experienced

candidate.

Then, interviews are done. Interviews are done by the

committee members in which M.D., B.O.D. or SUMUL’S

higher authority persons are included.

Then, they sent appointment letter to the short listed

candidates.

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DOCUMENT RELATED TO RECRUITMENT AND

SELECTION:-

The organisation keeps the records of recruited and selected

employees for the job.

They keep a separate file for the application of candidates.

They keep file for the call letters of selected candidates.

PERFORMANCE APPRAISAL

PROCESS AND DOCUMENTS:-

Performance of the employees is done and the employees always

perform better for that they decide increments. The organisation

decides increments in three ways:

After completing the recruitment and selection procedure the

performance of the applicant can be checked. The

organisation gives them a special project to complete. After

completing the project, it can be checked by the authorised

person of that department. If the trainees complete their

projects satisfactorily then, they are appointed otherwise they

are terminated from the organisation.

ACCORDING TO PERFORMANCE: ~

The organisation decides increments according to the performance

of the employees. How they behave with others? , Are they finished

their work in given time with satisfactorily? etc. According to this the

organisation decides the increment. For that they keep record of the

employees in separate file.

ACCORDING TO PERFORMANCE FORM : ~

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The organisation issues the performance form. In this form all the

information regarding the employees are included. The forms are

submitted to M.D. If the M.D. tells yes, then the employees get their

increment. If the M.D. replies in no, then the head of the department

discuss with the M.D., how to improve the performance of the

employee.

PROMOTION POLICY: -

This is not working as PUBLIC sector but it is a Co - 0perative

sector. According to the performance of the employee, promotion is

given. It is not necessary that the employee will get promotion. The

organisation gives upgradation. Upgradation means without change

of job movement of an employee to a higher pay scale. The

organisation decides upgradation two times:

After 14 years

After 23 years, in this upgradation if someone is Senior

Executive, he will become an Executive Officer.

TRANSFER POLICY:-

According to working scenario, the organisation will do transfer and

it is cleanly mentioned in the appointment letter.

DEMOTION POLICY:-

There is no as such demotion policy in the organisation and there is

no also V.R.S. scheme in the organisation.

DIFFERENT WELFARE ACTIVITIES:-

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The organisation does so many welfare activities for human

resources and these activities are given below:

REST ROOM: ~

The organisation provides a separate rest room for the employee to

take rest their after a long hours or after lunch time.

CANTEEN FACILITY: ~

The organisation provides the canteen facility for the employee for

their break fast, lunch and dinner at very economical rate.

VEHICLE PARKING FACILITY: ~

The organisation has a very large parking facility for their

employees’ and visitors’ vehicles.

HOUSING FACILITY: ~

The organisation provides the housing facility for their employees

near the organisation so that they can easily and on the time reach

at the organisation. The organisation has quarters for their

employees.

WASHING FACILITY: ~

Clothes washing facility is provided by the organisation for their

employees.

LOCKER FACILITY: ~

The employees have to work without any gadgets and they have to

wear the uniform of the organisation, so that for the safety of their

clothes and gadgets, the organisation provides locker facility in

which the employee put their clothes and gadgets.

UNIFORM, SHOES, CAPS AND RAINCOAT: ~

All the employees are provided uniforms, shoes, caps and raincoats

by the organisation.

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HOUSE RENT FACILITY: ~

The employees who are living in rental house, for that the

organisation provide house rent facility.

DEPARTMENTAL STORE: ~

To purchase the necessary items at economical rates, there is

KAMDHENU departmental store in the Staff Ready Credit Society

Staff Quarters, for the employees.

DRINKING WATER FACILITY: ~

To provide the child water facility to the employees, the organisation

has neat and clean water cooler facility in the different departments.

FUNERAL FUND FACILITY: ~

The organisation provides the “Funeral Fund Facility” for the

employees. For this fund the employees have to contribute Rs. 10

and the employers have to contribute Rs. 20. The employees get

different benefits from this fund which are mentioned below:

On the death the employees, Rs. 7,000 will be

provided by the organisation from this fund or on the death of any

family member from the employee’s family then the organisation

provides Rs. 2,000.

The organisation provides loans for the children of the

employees for education. The organisation provides Rs. 10,000 for

the technical stream students. The employee has to repay the loan

amount in 36 installments.

For the employees medical treatment the organisation

provides the medical expenses.

On the retirement of the employee, the organisation

provides a cheque from this fund.

VEHICLE LOAN FACILITY: ~

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The vehicle loan facility is only provided to executives only not for

the employees.

MEDICAL FACILITY: ~

If any accident occurs during the working hours in the organisation,

the organisation provides this first aid facility to the employee for

their quick remedy. Sumul Ambulance Centre, Group Insurance,

Regular Medical Checkup & X-ray, helping to prevent bad habits,

Superannuation Scheme takes care as a preventive approach

towards the medical & health of the employees.

SAFETY FACILITY: ~

SUMUL has made provision for a Safety Officer who is qualified in

the Safety aspects and employees are provided with Safety

equipment & devices for usage at appropriate places. Safety in

observed in terms of "Safety for All" wherein Safety is not only for

its employees but also for the safety of Physical material like -

Equipment's, Building, Materials and the Safety of the Products

which is supplied to the customers. For food safety the organisation

is already HACCP certified. For updating the employee's knowledge

on Safety aspects, programs on Safety awareness are organized

regularly.

OTHER FACILITY: ~

In the mandatory, the organisation provides pension, gratuity,

provident fund facility, etc. Other Welfare provisions includes

Employees Credit Society and provisions for Medical Loan,

Educational Loans, Subsidized Stationery items, Retirement

benefits through "SURAT JILLA SAHAKARI DUDH UTPADAK

SANGH LTD. SARVAJANIK CHARITABLE TRUST" are extended

to the employees as well as their family members.

For further improving involvement of its human resources, Sumul

sponsors its employees for Higher Education, promotes

participation through competition, arranges visits and programs for

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Sharing experiences with other organisation, recognizes & rewards

achievements in programs, conducts meeting with MD & different

committees, underges wage settlements directly with employee

representatives, Shares information through In-house magazine

"SUMUL SETU".

EMPLOYEMENT RECORDS KEPT:-

After the selection of employee when he is joining the organisation,

the employee has to submit a form which contains some

information regarding his personal life or some other information

which is stored in computer and is maintained by establishment

sector. This form contains the following information:

The name, birth date, age, height, weight, passport size

photo, power of classes, marks of identification, present

address, permanent address, nationality, father’s name,

marital status, etc.

The academic data, percentage obtained in S.S.C., other

vocational qualification, past and present employment data,

language known, hobbies and interest, information regarding

accomplishment, achievement, reference, etc.

Attach certificate/Xerox copy of certificate in support of age,

academic qualification, experience, etc.

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SUMUL DAIRY

6.12 TRAINING AND DEVELOPMENT:-

In the organisation the employees are trained at three different

levels:

C.E.O. or top management training

Officer training

Senior executive training

C.E.O. OR TOP MANAGEMENT TRAINING: ~

The top management training or C.E.O. training is given for six

months.

OFFICER AND SENIOR EXECUTIVE TRAINIG: ~

The management development program organised by the institute

for the training of officers and senior executive and they have to

attend the program.

INDUCTION TRAINING:-

The induction training means to introduce the new employee with

the organisation and colleagues so that he/she easily join their work

without feeling nervousness.

In SUMUL there is 7 days of induction training program.

First of all the new employee is introduced with the

organisation.

Then, the employee is oriented with the higher management

and other department.

Then, he/she is introduced with his/her department and their

colleagues.

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SUMUL DAIRY

6.13 EMPLOYEE RELATION:-

In SUMUL there is no department called “INDUSTRIAL RELATION”

but they perform in “EMPLPOYEE RELATION”. Thus, in SUMUL

the name of this department is “H.R.D. AND E.R. (Human Resource

Development and Employee Relation Department)”. The

organisation does not have to perform any activities for the trade

unions, because the organisation does not have any trade unions.

The organisation performs different activities for the employee

relation some of them are mentioned below:

SOCIAL SECURITY MEASURES: ~

The organisation does many activities for social security measures:

The organisation takes steps to prevent the residential from

the pollution.

They also take care for no disturbance to residential.

The organisation also does the plantation programs. On the

SUMUL DAIRY ROAD all the plantation is done by the

SUMUL.

Sumul Dairy’s Contribution towards Society:-

Sumul dairy organizes some activities and programs for welfare of

society.

Like:

- Healthy baby contest.

- Free distribution of milk to needed.

- Loans and cattle feed to poor farmers and insurance.

- Animal husbandry.

- Regular health check up for cows and buffaloes.

- Eye check-up camp.

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SUMUL DAIRY

We can understand it by seeing the following data. From 1rs. Of

income Sumul pays more than 83% to farmers. And very few

amount spends on other activities.

FROM WHERE RS.1 COME (INCOME):-

PARTICULARS PAISE

MILK SALE 0.77

PRODUCT SALE 0.17

CLOSING STOCK 0.05

OTHER INCOME 0.01

WHERE RS.1 GOES (EXPENDITURE):-

PARTICULAR PAISE

MILK PURCHASE 0.83

SALARIES / WAGES 0.04

PACKING 0.03

TRANSPORTATION 0.02

RESEARCH & DEVELOPMENT 0.02

WATER, ELECTRICITY, FUEL 0.02

69

WHERE 1 rs. COMES

0.77

0.17

0.05 0.01

MILK SALE

PRODUCT SALE

CLOSING STOCK

OTHER INCOME

SUMUL DAIRY

PROCESSING 0.01

MAINTAINANCE 0.01

DISTRIBUTION 0.01

DEPRECIATION 0.01

LEADERSHIP AT VILLAGE LEVEL:-

In order to develop village level leadership, SUMUL is conducting

various developmental training programmes. These training

programmes provide training in understanding of farmers’ need.

Training programmes perform a good role for the people of rural

area. For the Leadership training programmes in rural area, a

Chairman of milk societies creates a team. From amongst chairman

of private milk society, the district level leadership emerges. This

district level leadership is now B.O.D. and they are elected by the

farmers’ representatives. SUMUL is conducting various

programmes since 1992 are as follows:

Women and member education class.

Committee member education class.

70

WHERE 1 rs. GOES

0.83

0.010.01

0.010.02

0.020.02

0.01

0.030.04

MILK PURCHASE

SALARIES / WAGES

PACKING

TRANSPORTATION

RESEARCH &DEVELOPMENT

WATER, ELECTRICITY, FUEL

PROCESSING

MAINTAINANCE

DISTRIBUTION

DEPRECIATION

SUMUL DAIRY

Society staff training class.

Leadership development class.

Women/member follow up programmes.

Milk day programmes.

Clean milk production programme.

Women dairy leadership development programmes.

Vision – Mission programmes.

MOTIVATION SYSTEM: ~

The employees are motivated through ways in the organisation

which are mentioned below:

Financial Motivation

Non Financial Motivation

FINANCIAL MOTIVATION: ~

In financial motivation only increment is given to the employees.

The increment is decided two times by the organisation:

In January

In July

If the employee joins the organisation between 1st January to 30th

June, then his increment will count in July and vice versa.

NON FINANCIAL MOTIVATION: ~

The non financial motivation is given to the employees in many

ways:

If the employee’s grievances are low but he/she is satisfied

with the jobs and colleagues then he/she is motivated to

work hard.

The employees and workers are free to talk with the M.D. to

discuss their problems.

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SUMUL DAIRY

If the performance of any employee is poor in the

organisation then there is personal counseling is done. The

M.D. and other authority try to understand the employee’s

problem and then, the employee is given enough time to

change himself and attitude.

All these HR efforts have resulted into Cost cutting as continuous

process, improvement in Overall Equipment Efficiency, more

delegation down the level, positive attitude, improvement in habits,

and reduction in absenteeism of employees, improved Internal &

External Customer Satisfaction, and ultimately SUMUL’S achieving

awards year by year.

CHAPTER CONTENT:-

6.14 PRICE, PRODUCT, PLACE AND PROMOTION

6.15 SEGMENTATION AND TARGET MARKET

6.16 SUMUL MILK MARKETING

6.17 CUSTOMER SATISFACTION

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SUMUL DAIRY

6.14 PRICE, PRODUCT, PLACE AND PROMOTION:-

PRICING POLICY:-

The pricing policy of SUMUL is fixed. It is based on the GUJARAT

CO – OPERATIVE MILK MARKETING FEDERATION’S (GCMMF)

structure. The pricing policy should include the production cost,

transportation expenditure i.e. from the manufacturer to distributor

and further. It should include the commission of the agents and

profit margin of the firm.

PRICE = PRODUCTION COST

+ TRANSPORTATION EXPENDITURE

- COMMISSION

- PROFIT MARGIN

[NOTE: ~ This information is collected from the secondary source.]

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SUMUL DAIRY

Products Mix: “The set of all products and items that a particular seller offers for sales to buyer.”

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SUMUL DAIRY

TYPES OF PRODUCTS: ~

1. SUMUL FRESH MILK

SUMUL MILK

75

Homogenized Toned Milk

Homogenized Toned Milk

Liquid MilkLiquid Milk

Whole MilkWhole Milk

Pasteurized Standard

Milk

Pasteurized Standard

Milk

Milk Products

Milk Products

Cow MilkCow Milk

Skimmed Milk

Skimmed Milk

White ButterWhite Butter

GheeGhee

Butter MilkButter Milk

Skimmed Milk PowderSkimmed

Milk Powder

Butter MilkButter Milk

Self Developed Products

Self Developed Products

PaneerPaneer

Flavors MilkFlavors Milk

SweetsSweets

ShrikhandShrikhand

Sumul SugarSumul Sugar

Sumul TeaSumul Tea

Milk ProductsMilk Products

SUMUL DAIRY

SUMUL D’LIGHT

SUMUL ESL MILK (1 LT)

2. SUMUL FLAVOURED MILK

SUMUL JOM (POUCH) (200 ML)

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SUMUL DAIRY

SUMUL JOM (BOTTLE) (200 ML)

SUMUL JOM (ESL) (1 LT)

SUMUL JOME (ESL) (200 ML)

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SUMUL DAIRY

3. SUMUL MILK PRODUCT

CHASS

MASALA CHASS

MITHI CHASS

78

SUMUL DAIRY

SUMUL GHEE

SUMUL PANEER

GULAB JABUN

79

SUMUL DAIRY

RASGULLA

MALAIPURI

SUMUL GHARI

80

SUMUL DAIRY

ELAICHI PEDA

KESAR PEDA

ELAICHI SHRIKHAND

81

SUMUL DAIRY

KESHAR PISTA SHRIKHAND

ANGOOR RABADI

4. SUMUL TEA & SUGAR

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SUMUL DAIRY

SUMUL SUGAR

SUMUL TEA

Channel of Distribution (PLACE):

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SUMUL DAIRY

1. Direct2. Indirect

1. Direct Distribution Channel :

Sumul is handling 1900 outlets for selling their buttermilk, tea and sugar.

2. Indirect Distribution Channels :

Sumul is distribution various products that are milk & other than milk there are 3 major distributors in Surat city & 19 distributors in rural areas. All dairy co-operative society acts as a distributor for all Sumul products. In Surat city Sumul is creates 3400 outlets; Sumul has their own 44 milk parlors which are in direct contact with the customer.

Information technology growing very fast and Sumul always ahead in technology. Customer should be got advantage of these technologies for this reason Sumul Started online shopping facility to Direct Customer as well as Distributor and parlor also net facilities like.

Direct Customer www.sumuldairy.com

Distributor and parlor www.b2bsumul.com

PROMOTION ACTIVITIES:-

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AgentAgent CustomerCustomerDairyDairy

SUMUL DAIRY

SUMUL is doing so many types of promotional activities one of

them is mentioned here:

Purchasing of 2 LTS. GHEE in tin gets FREE 50 GR. TEA

– 2 PKTS.

Purchasing of 1 LT. + 1 LT. GHEE in tin gets FREE 50 GR.

TEA – 1 PKT.

Purchasing of 1 LT. + 1 LT. GHEE in pouch gets free 50

GR. TEA – 1 PKT.

Purchasing of 500 ML. + 500 ML. GHEE in pouch gets free

50 GR. TEA – 1 PKT.

Purchasing of 4 pouches of 200 ML. GHEE gets free 50

GR. TEA – 1 PKT.

Sumul also organizes promotion activities like:

Take part in Exhibitions.

Free distribution of flavored milk in Schools in some

occasions.

Invite School / Colleges to visit their plant.

6.15 SEGMENTAION AND TARGET MARKET:-

Every month SUMUL is organising survey programmes to know

their market share. All the records are done in ORACAL system.

The employees of the organisation approach to the consumers by

many ways:

Giving advertisement in local T.V. channels

Advertising by hoardings

Rasoi contest

Partners of change

Paneer show

Home visiting

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SUMUL DAIRY

Thus, by doing different types of programmes and advertisement

SUMUL know their market share. In Dairy Industry SUMUL Dairy is

wide term. SUMUL has the market leaders in almost each dairy

product in Surat District:

PRODUCT MARKET SHARE

MILK 70%

PANEER 50%

GHEE 70%

SHRIKHAND AND SWEETS 15%

6.16 SUMUL’S MILK MARKETING:-

SUMUL’S milk marketing in Surat city is monitored, eliminating

costly sales-booths and through regular and assured twice a day

supply of milk to 1662 concessionaires (Agents) and 198

institutional buyers, through 85 contractors' route vehicles. There is

guaranteed cash inflow of the sales proceeds on day-to-day basis

and safe return of crates etc. to the Dairy. The

standardised/pasteurized milk is despatched to the city twice a day

to the network of concessionaires (selling it on behalf of SUMUL on

a commission basis). The institutional buyers are supplied milk in

sealed cans. Contractors' trucks carry milk from the Dairy Plant to

the places of these concessionaires who cater to the domestic

demand of milk in their respective earmarked areas.

Both economic and operational advantages of keeping the sales-

counters at the residential places of the Agents are distinct as:

No creation OR maintenance of these sales-counters is

involved.

All time security of milk, material and money.

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SUMUL DAIRY

Operational convenience to deliver milk and off take of crates

etc. from these permanent places at any time, including odd

hours

Utilization of Agent's family, labour and residential place and

hence very economic operation for them and the Dairy.

Familiarity of the Agents with the locality and vice-versa and

hence smooth dealing under mutual confidence.

The institutional buyers include hotels, restaurants, canteens,

hostels, charitable institutions, milk vendors etc. who enter into

contract for purchase of milk for the entire year and receive milk as

per the contract, twice-a-day, in sealed cans, through the

contractors' milk routes and make the full payment to the Dairy

Representative just at the time of delivery of milk to them.

The Contractors are responsible for any shortage, breakage OR

pilferage of milk and material occurring during transportation. While

the Agents hold the responsibility of any such incidence occurring at

their level. There is regular, assured and smooth in-flow of cash

from milk sales from the Agents to the Dairy's Cash Collection

Centers on day-to-day basis without involving a bank for collection

of sales-proceeds and maintaining individual accounts. Milk

delivered to these Agents during the day is sold by the Agents and

the sale-proceeds are deposited by them daily at the nearest Cash

Collection Centre of the Dairy. These Centers are run by the Dairy

for all 365 days in a year for regular day-to-day receipt of cash

amount. For any default on the part of the Agent, such as non-

payment or short-payment of cash, corrective action is taken almost

instantaneously by the Dairy. Normally, such incidents are very few

and far between and are rectified without any problem.

With day-to-day contacts and experience, all the Agents are known

and SUMUL’S money is held to be quite safe with them since the

cost of three days milk supply is taken as deposit from them in

advance. They are paid interest on this and it is distributed to them

yearly by adding it to their milk commission.

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SUMUL DAIRY

SUMUL also encourages a small Savings Scheme for the Agents

by deducting a particular amount from their commission every

month and transferring the same into their deposit amount, thereby

allowing the deposit to build-up every month, which gets additional

security to the Dairy as well as to these Agents. Any amount in

excess of three times, the realisation from the daily sales can be

withdrawn by the Agent any time during the year. Currently the

commission of 40 paisa per liter is paid to the Agent.

6.17 CUSTOMER SATISFACTION:

Needs:

Hording & banners of Sumul products are used for advertisement.

Change have been done in packing & slogans of few production

Door to door advertisement is done for new products.

Facility of taking loans from bank for vehicles & refrigerators are given to agents.

The schoolboys & girls, who are the future customer, are educated about Sumul milks & milks products & its purity.

A mobile van with facility to test milk, show films to customer & address public regarding the hygienic aspects of Sumul milk.

Cash center has been opened in different areas & through bank so that the agent can deposit their cash daily.

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SUMUL DAIRY

Feedback

After personal visit to customers & explaining the causes of complaint.

Replacement is given for storage milk or low weight milk pouches.

If agents changes more than MRP than they are fined & even terminated.

Agents may also be terminated for his unwanted behavior.

Customer satisfaction is most important for the organization.

The organization goes for consumer survey to know their preferences & intended Demand.

A separate wing is creating in the sales department who takes care of customer complaint. Consumer forums in different areas are formed and regular meeting are organized to address their grievances.

Complains are received either by the letter or telephone.

Complains are entered in to the customer complaint resister.

Seeing the nature of complaint, action is taken.

Complain:

Curding of milk Low weight Price changed by the agent more than MRP Agent’s Behavior Leakage

Complain Process Steps:

Receive the complain Complains are received either by the letter or

telephone. Complaints are entered in to the customer complaint

resister After the proper evaluation of complains the

necessary steps or action are taken by the marketing department.

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SUMUL DAIRY

CHAPTER CONTENTS:-

6.18 FINANCIAL DATA

6.19 BUDGETING

6.20 FINANCIAL AUDIT

6.21 RATIO ANALYSIS

6.22 WORKING CAPITAL

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SUMUL DAIRY

6.18 FINANCIAL DATA:-

Cost is one of the main factors affecting finance department. There are lots of control techniques through which companies can control their cost. Costing is the factor that affects the pricing as well as profits of the company. If the costs are controlled then the company can fix competitive price and achieve targeted returns. If the company is able to get the cost at minimum level then can get an additional benefit over their competitors. To control Cost Company might have to:

1. Replacement of worm out machines and equipments with new ones.

2. Make or buy decision3. Extension of existing production plant.4. By having latest technology machines and equipment.5. By producing large quantities of products.6. Controlling the inventory levels.7. To do investments where maximum returns can be achieve.

Cost Structure of Product:

Production cost

+ Transport expenditure

+ Profit Margin

+ Commission

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SUMUL DAIRY

6.19 BUDGETING:-

BUDGET OF YEAR 2008-2009

No.

Particulars Sumul Dairy

- Surat

Rs (in lac)

Sumuldan Factory

- Chalthan

Rs. (in lac)

Food packagi

ng

Station

Rs. (in lac)

Total

Rs (in lac)

Purchase and Expenses: -

1 Milk purchasing 54250 8725 1160 641352 Transport Expenses 1330 13303 Research & Developement 1355 13554 Processing Expenses 665 80 7455 Packaging Expenses 2000 575 10 2585

Total of 1 to 5 No. 59600 9380 1170 701506 Light and Water 970 215 11857 Salary 1600 115 4 17198 Provident Fund 500 32 1 5339 Repairing Expenses 570 80 1 65110 Distribution Expenses 720 180 2 90211 Stationary Expenses 65 5 1 7112 Insurance 150 10 1 16113 Municipal tax 25 5 3014 Audit fees 60 10 7015 Other Expenses 60 2 1 6316 Interest 300 15 2 31717 Depreciation 600 75 2 67718 Provision for Income Tax 60 60

Total of No.6 to 185680 744 15 6439

19 Surplus per Profit 170 26 15 211Total 65450 10150 1200 76800

1 Sales 65000 10100 1195 762952 Other Income 450 50 5 505

Total65450 10150 1200 76800

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SUMUL DAIRY

CAPITAL BUDGET OF YEAR 2008-2009

NO. Particulars

Amount(Rs. in lac)

Amount(Rs. in lac)

1. SUMUL DAIRY SURAT:MACHINARY 952.00BUILDINGS AND ROADS 261.50 1213.50

2. BAJIPURA SHIT CENTER:MACHINARY 32.00BUILDINGS AND ROADS 80.00 112.00

3. UCHHAL SHIT CENTER:MACHINARY 17.50BUILDINGS AND ROADS 86.00 103.50

4. SUMULDAN FACTORY CHALTHAN:

MACHINARY 157.00BUILDINGS AND ROADS 100.00 257.00

5. NEW PARDI SHIT CENTER:MACHINARY 25.50BUILDINGS AND ROADS 40.00 65.50

6. NIZAR SHIT CENTER:MACHINARY 5.50BUILDINGS AND ROADS 5.00 10.50

7. NASHIK:MACHINARY 50.00BUILDINGS AND ROADS 75.00 125.00

TOTAL1887.00 1887.00

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SUMUL DAIRY

6.20 FINANCIAL AUDIT:-

PROFIT & LOSS A/C

31 – 03 – 2007

(Rs.)EXPENDITURE

31 – 03 – 2008

(Rs.)

23,45,02,345 To Opening Stock 34,81,28,279

5,16,29,71,071 To Purchase 6,02,88,02,530

12,43,57,331 To Transport Society 12,59,79,623

10,53,01,246 To Research & Extension 13,40,47,192

4,98,13,691 To Processing Expenses 5,41,65,024

24,17,41,124 To Packing Expenses 24,62,50,373

10,83,01,903 To Power & Fuel & Water 11,58,68,268

15,11,58,983 To Wages & Salary Expenses 16,43,79,705

3,88,72,509 To P.F. & ESI 4,97,28,353

5,40,15,263 To Repairs and Maintenance 5,51,61,657

8,40,89,489 To Distribution Expenses 9,18,66,472

40,57,051 To Stationary-Postage Expenses 46,24,571

77,70,586 To Insurance & Legal Fees. 1,34,86,896

15,59,975 To Vehicle Tax and Municipal Tax 16,46,026

59,56,476 To Continuous & Concurrent Audit Fees. 61,52,977

38,35,379 To Miscellaneous Expenses 46,47,881

2,07,17,824 To Interest & Bank Commission 2,15,30,155

5,21,28,608 To Depreciation 6,40,91,651

46,00,000 To Provision for Income Tax 60,00,000

----- To Bad & Doubtful Debts -----

1,63,31,368 To Net Profit 2,07,61,681

6,47,20,82,222 7,55,73,19,314

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SUMUL DAIRY

TRADING & PROFIT AND LOSS A/C FOR THE YEAR ENDED

31 ST MARCH 2008

31 – 03 – 2007

(Rs.)

INCOME 31 – 03 – 2008

(Rs.)

6,06,85,26,718 To Sales 6,99,84,77,872

5,54,27,225 To Other Income 4,14,16,558

34,81,28,279 To Closing Stock 51,74,24,884

6,47,20,82,222 7,55,73,19,314

TOTAL NO. OF ASSETS: ~

31-3-2007 Particular 31-3-2008

2,26,67,838 Land and Road 1,85,17,409

17,29,19,003 Factory and Other

Building

13,92,71,506

1,51,53,232 Staff, Quarters

and Hostel

Building

89,54,215

49,48,98,687 Plant and

Machinery

17,99,93,977

1,12,88,464 Vehicles 57,92,909

3,15,74,730 Furniture –

Fixtures and

Equipments

2,14,27,386

92,54,835 Crates/Cans

Plastic

1,41,863

54,84,320 Current Repairing 7,02,845

76,68,41,109 37,48,01,750

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SUMUL DAIRY

TOTAL NO. OF FUNDS: ~

31-3-2007 Particular 31-3-2008

4,62,60,583 Reserve Fund 5,01,53,955

1,74,90,922 General Reserve Fund

1,99,35,257

1,32,42,260 Capital Subsidiary Fund

1,70,21,860

40,26,328 Doubtful Debts Fund 40,07,19919,68,068 Dividend

Equalization Fund30,54,439

20,21,319 Research and Development Fund

31,07,690

5,67,466 Charity Fund 11,10,6524,10,604 Co-operative and

Education Fund6,82,197

5,13,08,475 O.F. 2nd Fund 5,13,08,475

13,72,96,025 15,03,81,724

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SUMUL DAIRY

6.21 ANALYSIS OF P & L A/C AND BALANCE SHEET

BY RATION ANALYSIS:-

CURRENT RATIO:-

(FOR CURRENT YEAR)

Current AssetsCurrent Ratio =

Current Liabilities

Current Assets = Stock + Debtors + Cash

Current Assets = 54,47,01,276 +75,49,00,370+17,84,93,131

Current Assets = 1,47,80,94,777

Current Liabilities = 1,34,53,70,370

1,47,80,94,777Current Ratio = 1,34,53,70,370

Current Ratio = 1.09

ANALYSIS AND COMMENT:-

Current Ratio measures the solvency of the company in the short

term. A Current Ratio of 2 : 1 indicates a high solvency position.

During the year 2007 – 2008 the Current Ratio of SUMUL is 1.1 : 1.

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SUMUL DAIRY

LIQUID RATIO:-

(FOR CURRENT YEAR)

Liquid AssetsLiquid Ratio =

Liquid Liabilities

Current Asset-StockLiquid Ratio =

Current Liabilities – B.O.D.

1,47,80,94,777-54,47,01,276Liquid Ratio =

1,34,53,70,370

93,33,93,501Liquid Ratio = 1,34,53,70,370

Liquid Ratio = 0.69

ANALYSIS AND COMMENT:-

Liquid Ratio is used as a measure of the company’s ability to meet

its current obligations. Liquid Ratio of 1 : 1 indicates highly solvent

position. During the year 2007 – 2008 Liquid Ratio of SUMUL is

0.69 : 1.

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SUMUL DAIRY

DEBT EQUITY RATIO:-

(FOR CURRENT YEAR)

Long Term LiabilityDebt Equity Ratio =

Owner’s Fund

Owner’s Fund = Share Capital + Reserve & Surplus + P & L A/COwner’s Fund = 4,27,29,900 + 15,03,81,724 + 2,07,61,681Owner’s Fund = 21,38,73,305

4,54,500Debt Equity Ratio =

21,38,73,305

Debt Equity Ratio = 0.002

ANALYSIS AND COMMENT:-

Debt Equity Ratio indicates the relationship between loan fund and

net worth of the company. A Debt Equity Ratio of 2 : 1 is the norm

accepted by the financial institutions for financing of projects. A

Debt Equity Ratio of 2007-2008 is 0.

LONG TERM FUND TO FIXED ASSETS:-

(FOR CURRENT YEAR)

Long Term FundLong Term Fund to Fixed Asset =

Fixed Asset

Long Term Fund = Long Term Loans + Share Capital + Reserve & Surplus + Debentures + P & L A/C

Long Term Fund = 2,37,74,301 + 4,27,29,900 + 15,03,81,724 + 4,54,500+ 2,07,61,681

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SUMUL DAIRY

Long Term Fund = 23,81,02,106

23,81,02,106Long Term Fund to Fixed Asset =

23,60,61,761

Long Term Fund to Fixed Asset = 1.01

ANALYSIS AND COMMENT:-

This ratio indicates the proportion of long term funds deployed

assets. The higher the ratio indicates the safer funds available in

case of liquidation. It also indicates the proportion of long term

funds that is invested in working capital. During the year of 2007 –

2008 this ration is 1.01: 1.

DEBTOR’S RATIO:-

(FOR CURRENT YEAR)

NOTE:- Here there is no specification of credit sales so, whole

sales is considered as credit sales.

Debtors + Bills ReceivablesDebtor’s Ratio = 365

Total Credit Sales

17,84,93,131Debtor’s Ratio = 365

6,99,84,77,872

Debtor’s Ratio = 9.31 days

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SUMUL DAIRY

ANALYSIS AND COMMENT:-

In this ratio the collection period is as possible as low. In the

following calculation the debtor’s collection period for the year

2007– 2008 is 9.

DEBTOR’S TURNOVER RATIO:-

(FOR CURRENT YEAR)

No. of Days in a YearDebtor’s Turnover Ratio =

Debtor’s Ratio

365Debtor’s Turnover Ratio =

9

Debtor’s Turnover Ratio = 40.55 Times

ANALYSIS AND COMMENT:-

During the year 2007 – 2008 the Debtor’s Turnover is 41 times.

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SUMUL DAIRY

6.22 WORKING CAPITAL:-

Working Capital As on 31-3-2008

PARTICULAR RS. RS.

A) CURRENT ASSET

Cash 4,41,007

Stock:-

Milk Stock 2,42,94,590

Products Stock 41,18,74,033

Raw Material Cattle Feed 8,12,56,261

General Stores 2,10,74,982

Vete. Medical Stock 62,01,410 54,47,01,276

Debtors 17,84,93,131

A) TOTAL CURRENT ASSET 72,36,35,414

B) CURRENT LIABILITY

Creditors 2,93,13,901

B)TOTAL CURRENT LIABILITY 2,93,13,901

NET WORKING CAPITAL (A-B) 69,43,21,513

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STORE DEPARTMENT:-

ORGANISATIONAL STRUCTURE:

Store Division

Raw Material Finished Goods

Manager Assistant Manager

Senior Executive Clerks

Junior Executive Peon

ACTIVITIES:

Store Department performs following activities:

1. Storing Raw Materials and Finished Goods.

2. Providing the equipments whenever enquired.

3. Maintain bin cards.

4. Prepare indent letters.

5. Keeping records of material used purchased and

current stock.

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PROCEDURE:

When new purchase of Raw Material is done, that material is

sending to the Store Department. In the Store Department Store

Manager received the ordered material and verified the quality and

quantity of the ordered material. Then he put entry of the material in

his Computer Oracle System and product is stored in the Store

Department. When any process of the finished good is stop due to

scarce of material then process manager run to the Store

Department and applying for issue the material by filling the form

namely Material Issue Docate (MID). Then Store Manager sends

the required quantity to the concern manager and deducted that

quantity form the real quantity.

DISPATCH DEPARTMENT:

ORGANISATION STRUCTURE:

Manager

Senior Executive

Junior Executive

Assistant

Workmen

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ACTIVITIES:

Dispatch Manager performs following activities:

1. Dispatch Manager receiving the orders from agencies.

2. He prepares the demand of the ordered Quantity.

3. He prepares the dispatch note form the ordered

quantity.

4. He prepares the Gate pass.

5. Dispatch the goods in the route trucks.

6. Conf

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CONCLUSION

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Conclusion:

For the requirement of completition of 4th semester of B.B.A. We

had undergone two months summer training at “SURAT DISTRICT

CO-OPERATIVE MILK UNION LTD. (SUMUL), Surat.” With the

objective to gain Practical knowledge and experience in the

company and to study the activities of different functional

area.

Sumul Dairy’s daily production is 7,00,000 to 8,00,000 liters. Sumul

Dairy’s main product is Milk, Flavored Milk, Ghee, Paneer, Chees,

Butter, Milk Powder etc. Sumul Dairy invites woman and gives the

knowledge of cooking & arrange competition between them. They

invite schools and colleges to visit and tour their plants. They also

arrange any other competition like painting, baby health & provide

milk to schools and colleges when they arrange sports day. They

study customer needs and wants in well-defined market segment.

They continuously gather and evaluate ideas for new products,

product improvements and services. They feed back customers’

needs and ideas to those in charge of product development. They

prepare periodic “profitability” reports by product, market segment,

geographic areas ( regions sales territories), order sizes, channels,

and individual customer. They tailor the financial package to the

customer’s financial requirement.

BIBLIOGRAPHY:

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BOOKS:

MARKETING MANAGEMENT

BY “PHILIP KOTLER (TWELFTH EDITION)”

HUMAN RESOURCE MANAGEMENT

BY “C.B.GUPTA”

ANNUAL GENERAL REPORT OF SUMUL DAIRY FOR THE

YEAR OF 2007-2008

WEBSITES:

www.sumuldairy.com

www.wikipedia.com / Sumul Dairy

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ANNEXURE

BALANCE SHEET AS AT 31 ST MARCH, 2008 (ASSETS)

31 – 03 – 2007

(Rs.)ASSETS

31 – 03 –

2008 (Rs.)

Assets: (As Cost Less

Depre.)

29,83,23,479 Total Assets 37,48,01,750

Investments:

4,77,44,132 Share (At Face Value) 4,97,44,132

28,09,523 Fixed Deposits (Short Term) 28,09,523

Stock:

1,84,06,337 Milk Stock 2,42,94,590

26,14,71,375 Products Stock 41,18,74,033

6,82,50,567 Raw Material Cattle Feed 8,12,56,261

2,54,30,905 General Stores 2,10,74,982

36,23,116 Vete. Medical Stock 62,01,410

37,71,82,300 54,47,01,276 54,47,01,276

Advances & Sundry

Debtors:

20,40,99,829 Trade Debtors 17,84,93,131

54,711 Central Excise 54,711

5,40,26,404 Income Tax Advance Tax 5,40,26,404

46,00,000 Advance Tax – 2007 – 2008 1,00,64,910

68,10,827 Input Vat Tax(Receivable) -----

2,09,85,489 Receivable Deposit 2,23,06,593

29,05,77,260 26,49,45,749 26,49,45,749

Cash & Bank:

3,26,63,158 Nationalised Bank 7,07,81,810

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8,65,38,181 Co – Operative Bank 16,98,60,553

5,47,123 Cash 4,41,007

35,00,00,000 Call Deposit 51,38,17,000

46,97,48,462 75,49,00,370 75,49,00,370

1,48,63,85,156 1,99,19,02,8

00

BALANCE SHEET AS AT 31 ST MARCH, 2008 (LIABILITIES)

31 – 03 – 2007

(Rs.)Liabilities

31 – 03 –

2008 (Rs.)

Authorized Share Capital:

5,00,00,000 5,00,000 Ordinary Share Rs.100

Each

5,00,00,000

Share Capital (Issued & Fully

Paid up)

4,27,25,900 4,29,299 Ordinary Share Rs.100

each

4,27,29,900

Redeemable Debenture:

4,54,500 909 Debenture Rs. 500 Each 4,54,500

Reserve Fund and Other Funds:

13,72,96,025 Total Funds 15,03,81,724

Loan:

93,79,790 N.D.D.B. (Operational Flood) 60,43,934

9,00,000 Gujarat Govt. Revolving Fund -----

1,91,21,926 Cattle Loan (I.D.B.I. Bank) 2,60,77,129

8,46,960 Short Term Loan 40,00,83,562

Current Liabilities & Provisions:

50,45,69,366 Due To Societies 65,69,80,709

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30,95,02,901 Saving Societies 29,26,69,691

9,79,932 Fixed Deposits 9,56,131

13,92,56,792 Deposits 10,10,55,307

81,88,392 Other Liabilities 82,07,259

3,06,50,000 Provision For Income Tax 3,66,50,000

12,69,36,360 Outstanding Expenses 14,05,33,731

11,72,13,950 Trade A/C 7,90,03,641

2,20,30,994 Creditors (Miscellaneous) 2,93,13,901

1,25,93,28,687 1,34,53,70,37

0

1,34,53,70,3

70

1,63,31,368 Profit & Loss A/C 2,07,61,681

1,48,63,85,156 1,99,19,02,8

00

TURNOVER:-

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