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CHAPTER 1

1. PROFILE OF AAVIN DIARY PLANT


1.1 INTRODUCTION
The importance of primary industry is to aid the economic development of the
country. The food industry in India has been showing steady growth rate over the
severalyears. The main reason of this phenomenon is the large disposal incomes the food
sector hasbeen witnessing a marked change in consumption pattern, especially in term of
food. An ICRA report which analyses food expenditure pattern over the last three decades in
India.The report observes that the proportionate expenditure on pulses, edible, oil, sugar, salt
andspices declined as households climb the expenditure classes in urban India while the
oppositehappens in the case of milk products, meat, egg, fruits, fish and beverages.

Among processed food products the milk needs special mention. Retail shelves now
offermultiple choices in the processed Cheese segments such as Le Bon of
DabonInternational, Launching Cow,Britannia and Amul. India is in fact one of the largest
milkproduces in the world. Organized dairy industry accounts for less than 15% of the
milkproduction in India .The rest of the milk is consumed either at farm level, or is sold as
fresh non- pasteurized milk through unorganized channels The share of organized
industriesexpected to rise rapidly especially in the urban regions with its status as the largest
milkproducer in the world. India is in the verge of assuming an important position in the
global diary industry. Many international dairy companies are viewing India with an eye to
tappingits vast growing market for dairy products. The rise in the market for dairy products is
likelyto witness the fastest growth at 20% -30% per annum.

Some of the important factors that gives investors in India are:

 Size: India is possibly the largest contributor of milk and milk products in the world.
 Government: India is the world's largest independent judiciary, well established and
free from government interferences.
 Geography: Geographical location in the center of the eastern hemisphere.
 High volumes: With its current output of 78 million tones, India is already theworld's
largest milk producer While its annual milk production growth rate averagedabout 5%
the domestic market for products like Butter, powder, cheese, ice-creams,diary
whiteners etc. galloping at 10%-15% over year.

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1.2 WHITE REVOLUTION
Over the last 25 years or so the Indian diary industry has progressed from a situation
of scarcity to that plenty. Dairy farmers today are better informed about the techniques
formore efficient milk production and their economics. Operation flood program
implementedby National Dairy Development Board (NDDB) played a key role in bringing
about thistransformation. The important of the operation flood program lays its focus on
small ruralproducers. The Anand-pattern co-operative structure comprises of the village
Diaryco-operative societies that promote district level union which in turn promote state level
marketing federation in 1970.National Dairy Development Board (NDDB) replicated
theAnand-pattern co-operative through operation flood program all over India.

The Anand-Pattern envisages:

 Desterilized milk production by small milk products.


 Milk procurement by primary diary co-operatives of milk producers.
 Centralized milk processing by union of milk producers marketing of milk and milk
products done by federation of union.

The important Futures of Dairy Cooperative networks of the country are:


 Includes 22 state federation in India.
 170 milk union convening 205 districts.
 Covers nearly 101000 village level society.
 Owned by nearly A million farmer members.

Achievements in the field of milk production are as follows:

 India a milk production increases from 21.2MT in 1968 to 84.6 million in 2001-
2002Per capita availability of milk presently 226 grams per day, from 112 grams per
dayduring 1968-1969.
 Net increase in availability is 2% per year.

India has achieved tremendous progress in the field of marketing of milk and milk products.

 In 2000-02 average co-operative milk marketing stood at 134.23 Lakh liters,


annualgrowth averaged above 5% compounded for the last five years.

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 Dairy co-operative marketed milk in about 200 cities including metros under 500
smalltowns.

1.3 COMPANY PROFILE

The Nilgiris district co-operative milk producer’s union Udhagamandalam.

Name of the company : AAVIN

Address of the company : Ooty, the Nilgiris.

General Manager : Tmt.K. Sumathi, M.Sc.,

President : Thiru. A. Millar, M.A.,

Date of commencement : 1st February 1981

Nature of business : MILK

Tin no : 33812600119

CST no : 348175

Bank : STATE BANK OF INDIA

The Udhagamandalam (Ooty) co-operative milk supply society (OCMSS) was


established on 14th July 1946 with 355 members with capital share of 10,275/- under the
leadership of Mr. Giriappa Gowder. During the year 1940, milk was procured only from the
area around ooty and distributed to the customer.

During mid-1940s, milk was collected from members residing in and around Ooty
and was supplied to customers. The OCMSS expanded its area into 20 villages during 1960;
between 1962 and 1964 the pasteurization plant with the capacity of 10,000 liters per day was
installed later in mid1970s the OCMSS accumulated assets worth’s Rs 35 lakhs. Dairy
stalwart like DR. N. Basuvish and Shri Proviah have lent their able support during this
period. At present the organization is functioning with ‘91 villages milk producers’ societies
and 35.846 members which include 7,790 female members.

The new milk Diary is situated on the Coonoor main road has been built to produce
the best quality of cheese in India. The building cost was given through the hills area
development project and the finance for the machineries was rendered by national milk
origination. In this 50% was given as loan and the remaining as capital share.

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In order to have complete milk production in our country, milk production scheme
was implemented as per the scheme was implemented as per the scheme to buy tools and
machineries for the Nilgiris district co-operative milk producers union and other necessary to
instrument to establish village co-operative societies, financial assistance was received from
national milk society.

 Dairy complex:

Our new dairy established in1985 with milk handling capacity 500 LPT.
Infrastructure assistance for establishing cheese for plant was availed from national dairy
development board. The additional cost of the civil worker was met out from the hills area
development programmed funds. Hill area development program:

For the construction of the new dairy complex, the government under hill area
development program has sanctioned an amount Rs. 347.367 lakhs 50% share capital and
50% loan. The new dairy complex was constructed with handling capacity of 50,000 LPD. It
is functioning from the year 1985. Milk procurement:

During 2016-2017, the average milk procurement was 1964 IPD. We are taking all
effort to increase the milk procurement by 25000 IPD. Area of sales:

They are selling only within the district and not beyond the district. They four main areas are
as follows;

 Ooty
 Coonoor
 Kotagiri
 Gudalur

There are the four main area and there are 18 routes. In ooty there are 12 routes and in
Coonoor, 3 routes in Kotagiri 2 in Gudalur.

 No. of agent: 353


 No. of parlors: 76
 No. of institutions:73

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1.4 VISION
 To march forward with a missionary zeal this will make Aavin a trailblazer of
exemplary performance and achievements beckoning other Milk Federations in the
country in pursuit of total emulation of its good deeds.
 To ensure prosperity of the rural milk producers who are ultimate owners of the
Federation.
 To promote producer oriented viable co-operative society to impart an impetus to the
rural income, dairy productivity and rural employment.
 To bridge the gap between price of milk procurement and sales price.
 To develop business acumen in marketing and trading disciplines so as to serve
consumers with quality milk, give a fill-up to the income of milk producers.
 To compete with MNCs and Private Dairies with better quality of milk and milk
products and in the process sustain invincibility of co-operatives.

1.5 MISSION

 Established the producing sectors.


 Developing the employee’s skill.
 Increasing the profit of the company.
 Using advanced technologies for manufacturing.
 Tie up with international sectors.
 Create employment opportunities to rural areas.

1.6 UNIONS

There are 17 District Co-operative Milk Producers’ Unions functioning in Tamil


Nadu, covering 30 Districts. They are

 Kancheepuram-

 Tiruvallur

 Villupuram
 Vellore
 Dharmapuri

 Salem

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 Erode

 Coimbatore

 Nilgiris

 Madurai

 Dindigul

 Trichy

 Thanjavur

 Pudukkottai

 Sivagangai

 Virudhunagar

 Tirunelveli

 Kanyakumari

1.7 GROWTH OF THE COMPANY


Plant Name: Ooty Co-operative Milk Supply Society (OCMSS).

District: Nilgiris.

Taluk: Udhagamandalam.

Aavin Milk is an initiative of Ooty Co-operative milk supply society Ltd., established
in the year 1963 with56 member farmers now it has around 7000 members, making it Tamil
Nadu's largest primary milk co-operative society. Typly Society Ltd No D 1843 (OCMMS) is
the largest milk society in Tamilnadu registered under Tamil Nadu Co-operative Societies
Act 1954 and working under the administrative control of the Dairy Development
Department Presently the Society is procuring about 22000 LPD from 2806 producers.
Society has 6037 Members with share capital of Rs 17600. Milk Society has seven Branch
Offices under which there are 225 major Milk Collection Points. OCMSS had started in the
year 1963 and one of the oldest primary Diary Cooperative Society in the State with annual
turnover of Rs 1889 lakh.

OCMSS is actively involved in the development activities for promoting milk


production by implementing the various Departments like Dairy Development Department,
Animal Husbandry Department, Local Self Government etc. Society is also undertaking its

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own schemes like cattle insurance, Mediclaim, reimbursement of cattle treatment etc. It is the
first milk society in Tamilnadu to implement the computerization.

Society has established a Milk Chilling Plant in the Survey No.681 in Ooty with the
financial assistance under the Rastru Sam Vikas Yojana through Dairy Development
Department during July 2008 and is further upgraded to a Modern Diary Plant with the same
fund during march 2010. The capacity of the Plant is 20000 LPD with 1SO220003 design.

Society is marketing sachet milk curd, butter milk ghee etc. The total expenditure of
the project was Rs 450 lakhs and procured the amount through various means including
deposit from members, own fund, loan from SBI Ooty etc. other than subsidy.

The marketing area Ooty. Coonoor and Gudalur Districts. The products are peculiar
with its own quality and is the base of the market. Out of 22500LPD milk 5500 LPD is local
market and the balance amount id received by the Diary plant, 13500 liters of milk is
processed and marketed and 3500 liters is disposed to other Dairies. To meet the dynamic

preferences of their valuable customers, they decided step in to the diversified market
segments of its kind. To make the dreams real, they have installed the art milk processing
plant complying international Technological standards with the support of the Dairy
Development Department of Tamil Nadu and Tamilnadu Agricultural University.

They procure milk from their member farmers who belong to the traditional farming
community, settled in the inner hamlets of Nilgiris District which is a part of the world
famous Nilgiris Biosphere. They are technically trained to match the postindustrial standards.
It is processed immediately to minimize the loss of natural quality and packaged after
assuring all quality tests as per statute laws.

1.8 MAIN COMPETITIORS FACED BY THE COMPANY:

 Milma
 Cavin

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1.9 OBJECTIVES OF THE COMPANY:

To offer excellent products using high quality raw materials, superior techniques and best

Practices.

 To provide health, nutrition safe and economical food products.


 To maximize the capital utilization.
 To provide very safe, good quality products and value for money to the customers and
consumers.

PRODUCTION UNIT:

The Aavin Milk has only one production unit which is situated in Ooty (Nilgiris
District) engaged in the production of milk products.

PRODUCT LINE:

 Toned milk
 Skimmed milk curd
 Homogenized toned milk
 Ghee
 Milk peda

BUSINESS OPERATION:

The company is situated in Ooty engaged in the manufacturing of milk products


Basically Toned milk, Skimmed milk curd and, homogenized Toned milk, Ghee, Milk Peda.

The main objective of the company is to improve continually and to produce and
supply milk products that company their customer perception and delight.

NATURE OF BUSINESS:

The products manufactured by the company are milk products, company produces milk
products like Toned milk skimmed milk and Homogenized, Toned milk, Ghee, Milk peda,
finished products are distributed through drivers.

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1.10 PRODUCT PROFILE

1.10.1 MILK

In Aavin they produce three types of milk. Pasteurized Toned Milk,


Standardized milk and Full cream milk. They have 5 milk packing machines out
of five 3 machines pack 500ml and 2 machines pack 250ml of milk. To
differentiate the milk variety, they use different colours of milk packets. For a
minute they pack 60 packets of milk for the workers convenience. After packing
the milk is placed in milk trays and then sent for storage.
MILK FAT AND SNF
Pasteurized Toned Milk FAT 3.0% SNF 8.5%
Standardized milk FAT 4.5% SNF 8.5%
Full cream milk FAT 6 % SNF 9.0%

INGREDIENTS:

Raw Milk

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PROCEDURE:

Receiving Raw Milk

Determining of FAT and


SNF of milk

Preheating(350-400 c)

Cooling(50 c)

Homogenization

Pasteurization

Packing milk in packets (500


ml, 250 ml)

1.10.2 FLAVORED MILK

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Flavored milk is poured inside the bottles and cappedmanually.
Then it is labeled and sent to storage.

INGREDIENTS:

Milk, Edible flavor, Edible food colour, Sugar

PROCEDURE:

Processed milk

Pre - heating (35 - 40 0 c)

Mixing flavors, colour,


sugar

Filling in glass bottles

Cooling and storage at


room temperature

PRODUCT TYPES

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Flavoured Milk  Bottles 200ml

-strawberry
-cardamom
-chocolate
-Pineapple
-Pista

1.10.3. BUTTER

They produce butter in two machines. That is in churner and continuous


butter making machine. In churner for a batch they use 1000 liters of milk cream.
Output they get is only 500 liters of butter. The excess milk is collected
separately and is sent to Erode district Aavin plant to convert it into skim milk
powder. In case of continuous butter making machine, it produces butter
continuously. Its capacity is 800Kg/hr. This continuous butter making machine is
present only in two places of Aavin, in Ooty and in Coimbatore. According to the
demand for the product the production also varies.

INGREDIENTS:

Raw Milk

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PROCEDURE:

Pasteurized cream

Churning

Salting and working

Packing and storage ( - 21 0


c to - 25 0 c)

PRODUCT TYPES
Butter - Salted - 200gms / 500gms / 20kg

- Plain - 200gms / 500gms / 20kg

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1.10.4. GHEE

For ghee preparation they use 2000kg of butter. First, they melt the butter
then it is pumped into a tank and boiled at 1200 and leave it to cool. With the help
of a separator the separate all the dust that are present in melted butter. Then it is
pumped into another tank for packing purpose. Packing, labeling etc. everything is
done manually in a hygienic way and is kept ready for marketing.
INGREDIENTS:

Butter

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PROCEDURE:

Butter

Melting at 60 0 c

Boiling at 90 0 c

Clarifying at 110 0 c

Allow it to cool in room


temperature

packing and labeling the


bottles

storage 60 0 c

PRODUCT TYPE
Ghee varieties GHEE (JAR) 5LTR
GHEE (JAR) 1LTR

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1.10.5. MILK PEDA

For a batch of milk peda they use 80 litres of milk and 7 kilograms of sugar. By
theway of steam heating they heat the milk at 300 and they prepare the peda in a
pure way. In a batch they get around 15 kilograms of kova. For a day they produce
150kilograms of kova.

INGREDIENTS:

Milk, Sugar

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PROCEDURE:

Milk is poured in a
stainless steel pan

Boiled at 30 0 c

Sugar is added to it
when the milk thickens

Dehydration

Cooling and packing

PRODUCT TYPES
Milk peda Packets - 20 gms/50gms/100gms -
/250gms/500gm

1.10.6. CURD

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For the preparation of curd, they use 1000 litres of milk. They heat the
milk at 800 and then chill at 400. They use culture for fermentation of milk. Only
with the help of this culture milk is turned into curd. This culture is bought from
foreign countries for this purpose. After mixing the culture with the milk they
pack the milk in packets and cups and store it. After 4 to 5 hours the milk turns
into curd.

INGREDIENTS:

Milk and Culture

PROCEDURE:

Receiving of standardized milk

Heating the milk at 800c

Chilling the milk at 40 0c

Adding culture to it and packing it

Storing at 2.40c

PRODUCT TYPES
Curd 200 ml sachet & 200 grams Cup

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1.11 ORGANIZATION STRUCTURE

BOARD OF ..DIRECTORS

SECRETARY

MARKETINING FINANCE HR MANAGER PRODUCTION


MANAGER MANAGER MANAGER

SALES ACCOUNTS SUPERVISORS TECHNICIAN


EXECUTIVE

COLLECTION CLERK WORKERS WORKERS


AGENT

QUALITY
CONTROL

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CHAPTER 11
2.VARIOUS DEPARTMENTS

 Production department

 Marketing department

 Human resource department

 Finance department

 Quality control department

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2.1. PRODUCTION DEPARTMENT

Production is the process of transforming a variety of resources in to goods or


Services. Production function of business is concerned with the creation of product or service
required to satisfy customer needs, wants or desire. Production means creation of utilities and
cover all the activities of procurement allocation and utilization of resources such a labor,
energy, material, equipment, machinery etc. Utilities are goods and services which have want
satisfying power. Marketing research enables the enterprise to determine the nature and
character of output utilities.

PRODUCTION

Aavin Milk (Ooty Co-operative Milk supply Society Lad No. 1893) produce
Packaged Milk Curd Ghee, Milk peda and other products.

1) Packaged milk

The development and introduction of plastic material for packaging in the dairy
industry alone and in combination with paper resulted in a wide range container, termed
cartons, suitable for liquid milk. Ooty Co-operative Diary Company sells packaged milk
named “Aavin Milk “It contain 500ml packet. They also sell curd in the same size of packet.

Different milk varieties


 Toned Milk
 Homogenized Milk

2.1.1. Toned milk

Aavin milk is pasteurized and packed to match the required quality standards for processed
milk Toned milk fat and minimum 8 % milk solid nonfat.

Preparation

Toned milk refers the milk obtained by the addition water and skim milk powder to
whole milk. Suppose if the milk is very thin (water) due to removal of fat for the purpose of
separation of cream and butter.

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The following diagram shows the preparation of toned milk:

RECEIVING WATER IN PASTEURIZING

PRE-HEATING TO 38-43C

ADDITION OF SKIMMED MILK AND MIXING

FILTRATION

PASTEURIZATION AT 63 C FOR 30
MIN

COOLING AT 5 C

PACKAGING AND STORAGE AT 5 C

The calculated amount of clean water (7-8 parts for 1 skim milk, (powder) is received
in the tank equipped with stirrer. The water is heated to 38-48c and is continuously stirred.
Then a proportionate amount of dried skim milk is slowly added at the point of
agitation(stirring) and the mixture is thoroughly stirred till skimmed milk dissolves
completely. The whole mixture should be mixed with whole (the milk which is selected or
the preparation) and the stirring mixer grinders are best to do in home. The mixture is filtered
and pasteurized (63 c for 30 minutes to kill the unhygienic micro-organisms. Rapidly the

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prepared product should be cooled to 5c or below until distribution. Under the PFA rules,
toned milk should contain a minimum of 3.0% fat 8.5% solids no fat (SNF).

2.1.2. Homogenized Toned Milk

Homogenized toned milk is milk which has been treated in such manner as toensure
back up of the globules to such an extent that after 48 hours quiescent storage no visible
creamseparation occurs on the milk HTM contains minimum 3.0% fat and minimum 8.5%
milk solid nonfat.

PRODUCTION PROCESS OF HTM

RAW MILK COLLECTION AND RECEPTION

PRE-PASTEURIZATION

STORAGE IN TANK

PASTEURIZATION

HOMOGENIZATION

STORAGE IN TANK

PACKING THE MILK

COLD STORE

QUALITY OF PRODUCT IN LABORATORY TEST

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PRODUCTION DEPARTMENT STRUCTURE

PRODUCTION MANAGER

TECHNICAL SUPERINTENDENT

TECHNICIANS

PLANT ATTENDEES

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2.2. MARKETING DEPARTMENT

The marketing management consists of analyzing market opportunities, researching


and selecting target markets, developing market strategies, planning marketing tactics and
implementing and controlling the marketing effort. Marketing management is business
discipline which is focused on the practical application of the marketing techniques and the
management of a firm's marketing resources and activities. Rapidly emerging forces of
globalization have compelled firms to market beyond the borders of their home country
making international marketing highly significant and an integral part of a firms marketing
strategy. Aavin Milk has a separate marketing department loaded by a senior marketing
manager. Marketing department has a separate supply management in order to ensure timely
supply of milk and milk related products and received payments from the dealers.

RESPONSIBILITY:

 New product development


 Developing the marketing strategy
 Forecasting of sales least ten days in advance
 Distribution of the procured milk and milk related products
 Development and execution of market development activities
 Receiving the feedback from customer and dealers
 Complaint redressal

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MARKETING DEPARTMENT STRUCTURE

MARKETING MANAGER

ASSISTANT MANGER

SALES EXECUTIVE

FIELD OFFICER

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2.3. HUMAN RESOURCE DEPARTMENT
Every industrial or commercial organization comes into existence when a member
ofpersons joins hands. All his people work to achieve organizational goal. The activities
ofvarious individuals will be synchronized. If somebody is there to undertake this
workmanagement of every enterprise take up the responsibility of assigning, supervising and
controlling the activities of persons working there. Management brings human and material
resource together for attaining organizational goal. Proper human resource management will
enhance efficiency and performance of people at work.

 RECRUITMENT
Recruitment refers to the process of finding right people for the right job orfunction
usually undertaken by recruiters. In Ooty diary, vacancy of post is reportedthrough
employment agency and newspaper advertisement. The qualification is considered is based
on the nature of job. If it is for production unittechnical experience is necessary for the post.

 SELECTION
Selection is a process of choosing the most suitable from all the applicants.Selection process
starts immediately after recruitment. Selection is the process inwhich candidates for
employment are divided into two classes those who are to beoffered employment and those
who are not. The basic details are collected in theindustry. The administration staffs are
selected on the basis of their educationqualification.

 WELFARE ACTIVITY TO EMPLOYEES


This includes the insurance policy accident benefits provident fund gratitudeand
pension plans, and loan facilities. All the employees and their dependents arecovered by the
cash less hospitalization.

 The fund is instituted for the purpose of making some provision on recruitment for the
members of the staff of the company.
 Every person now in the permanent service of the company or who may be employed
permanently here in after in the service of the company shall be a contributor to this
fund.
 The fund shall come into operation from the date of approval by the register and for
those who you join later from the date of their conformation.

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 A contributor payment shall cease so long as he is in the service of the company.
 No withdrawal in full will be allowed until a contributor retrieved from the service
 All lapser shall go to the credit of the laps account.
 No amount shall be paid to or on account of any contributor until any debt that he
may owe to the company has been recovered.
 GRATUITY
All the permanent employees of the company are eligible for gratuity on the following
conditions.

 The employees must complete 5 years of service in the company.


 Gratuity shall be paid at the rate of 15 days basic salary for every completed year of
service.
 No employee who is dismissed for misconduct will be eligible for gratuity.
 No gratuity shall be paid to more than 20% of the employee in any co-operative year
in the event of resignation.
 Accumulation in the gratuity accounts shall be invested in post office savingsaccount
central or state government securities, financing bank or any of thenationalized bank.

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HUMAN RESOURCE DEPARTMENT STRUCTURE

HR MANAGER

ASSISTANT HR MANAGER

SUPERVISORS

WORKERS

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2.4. FINANCE DEPARTMENT

This department deals with financial aspect of the organization. Finance andaccounts
department prepares Annual budget, Balance sheets, estimating the source andapplication of
funds. Its main duty is procurement of funds and determination of source offunds and
utilization of procured fund.

 ACCOUNTING SYSTEM

The accounting system of the union is the double entry system that is for everycredit
there is a debit. All the transactions are computerized Trial balance and profit and lossaccount
are prepared half yearly. A uniform system is designed according to the NDDB,separate
books are maintained for each item.

 AUDIT
The section is computerized; hence auditing is an easy task. There are threetypes of
audit internal audit, statutory audit ad co-operative audit. Internal audit is doneon the daily
basis for this the auditors are appointed by the diary. Government does thestatutory audit and
remuneration is paid by the union. Co-operative audits are done everyyear.

 FUNCTIONS OF FINANCE DEPARTMENT


 Financial planning & controlling
 Sourcing of funds working capital management
 Book keeping & Accounting
 Audit & Inspection

2.4.1. IMPORTANCE FACTS OF THE DEPARTMENT

 CASH MANAGEMENT
The department is not involved in cash account of sales proceeds, allsales proceeds are
being collected by the marketing department and remitted to bankdirectly. The remittance
details will be passed on to this Department for accountingpurpose. All payment are
processed by finance department and made only throughBank. Payments made in cash are
limited to meet only nominal expenses and arebeing handed in impress cash basis. The union
is following an advance paymentpolicy for sale of Milk and Milk products with the exception
of credit facilityextended to only government and established organization and agencies. The

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unionfollows a centralized cash management system for free movement of fund from diaryto
diaryand to meat requirement of all dairies in time.

 MAINTENANCE OF ACCOUNTS BOOK KEEPING


Book keeping and Accounting of Transactions of the diary is beingmaintained by an
integrated computer Based Information System MIIS which ishaving a finance Module to
support the same. All Bookkeeping and Accounting oftransactions are processed through
MIIS except cash receipts against sale of milk. Allaccounts receivables on account of sales of
products managed by the marketingdepartments and are being handled manually the
transaction point using astandalone oracle based programmed which cannot be linked to the
windows based MIIS.

 PREPARATION OF MONTHLY P&L REPORT

The department is responsible for the preparation of a monthly profitand loss statement
on the operations for the month to be submitted to the GeneralManager .The report narrates
the financial performance of the diary for the month andbudgeted figures It also helps analyze
and evaluate the performance on monthly basisand deviations and excess can be curbed .This
is being used as an internal control andmonitoring measures.

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FINANCE DEPARTMENT STRUCTURE

FINANCE MANAGER

ASSISTANT FINANCE MANAGER

ACCOUNTANT

CLERK

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2.5. QUALITY CONTROL DEPARTMENT
QUALITY CONTROL DEPARTMENT STRUCTURE

QUALITY CONTROL OFFICER

TECHNICAL SUPERINTENDENT

LAB TECHNICIAN

LAB ATTENDIES

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In 21st century customers are quality conscious and they expect quality in eachand
every product they buy in “Aavin Milk “products is committed to provide quality product
tocustomers. To ensure that Aavin Milk produces and supplies hygiene and healthy milkand
milk products, it has a quality control department in every production unit. Qualitycontrol
department leaded by quality control officer assisted by lab technical superintendent.There is
lab technician to operate equipment and to do manual tests.

The plant has followed some method of testing to maintain the quality of milk They are,

1) TEST FOR FAT

Before the chilling process a sample is taken for fat test to ensure the standard fat content.
In this plant the electronic fat detector is used for this test. Fat content of milk is a main factor
for price fixation. The causes for some of the variations in the fat test of milk are follows.

 There is a distinct difference in the fat content of milk from animals of different
breeds
 Milk from individual cows within a breed varies more in its fat percentage than the
average milk from the different breeds
 The fat of milk varies with the stage of location. This variation may as low as five
tenth of one percent or even more than one percent
 There is a decrease in fat content during the warmer months of the year and an
increase during the colder months.

2) TEST FOR STARCH


This test is used for to detect the alternation in milk .Milk has no starchgradient .Some
farmers add starch with their milk because it rises lactometer readingof milk Take 5ml milk
and add 1ml iodine solution to the test tube and boil themixture if you get blue color that
indicates starch presence.

3) TEST FOR SUGAR


This test is used for to detect the adulteration in milk. Milk has no sugargradient.
Some farmers add sugar with their milk because it rises lactometer readingof milk .Take 5ml

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milk and add 5gm delusional powder to the test tube and boil themixture if it get red color
that indicates presence of sugar.

4) LACTOMETER READING TEST

Lactometer or lactometer is simple instrument used is testing therichness of milk is


graduated into a hindered part. Milk is poured in and allowed tostand until the cream has
formed then the depth of the cream deposit it degreedetermines the quality of the milk.

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CHAPTER 111

3. SWOT ANALYSIS

3.1. INTRODUCTION

A SWOT is a tool that identifies the strength, weakness, opportunities and challenges of and
threats, it is an important thing. Specification, SWOT is basic, straight forward that assesses
what an organization can and cannot do as well as its potential opportunities and challenges.
The method of SWOT analysis is to take the information from an environmental analysis and
separate it to internal (strength and weakness) and external issues (opportunities and threats).
SWOT analysis determines what may assist the firm accomplishing its objectives and what
obstacles must be overcome or minimize to achieve desired results.

SWOT

STRENGTH WEAKNESS OPPORTUNITIES THREATS

3.2. STRENGTH

 The Brand name (AAVIN) and its quality.


 Primary motive of Aavin is service and not profit.
 Well organized system.
 More procurement is there in Aavin compared to other private
companies.
 Technical manpower.
 Retains first position in supply of milk and milk products.

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3.3. WEAKNESS

 Perishability.
 Yearly contractstends to default from duties.
 Lack of advertisement.
 The Union cannot take decision on their own as it is controlled by the
government.

3.4. OPPORTUNITY

 Value addition.
 There is a scope for innovations in product development and
packing.
 Export opportunity.

3.5. THREATS

 The cost of milk is lesser than water.


 The competitors have gradually increased over the years.
 Availability of milk through milkman.

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CHAPTER 1V

4. LEARNINGS & OUTCOMES

4.1. LEARNINGS
 Have learned more about the organisation.
 Gained more knowledge by worked in the organization and with the employees of
the various departments.
 Have learned more about the products produced by the industry.
 More knowledge gained about the industry and their inputs, process and their
outputs.
 Learned how to overcome and face the difficult situations in the industry.
 Learned to maximize the capital utilization.
 Learned to provide very safe, good quality products and value for money to the
customers and consumers

4.2. OUTCOMES
 Technical skills have been developed by working in the industry.
 Managerial skills have been developed by interacting with the employees and the
department managers in the industry.
 Interpersonal skills have been developed by listening, questioning and
understanding body language.

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CHAPTER V

5. CONCLUSION

FMCG products are a daily requirement of all people as a whole . As there is a


large market for these products with large number of competitors. They need
innovative ideas to fulfill consumer wants to sustain and shine in the market.
From this study, we come to know that companies need to focus on consumer
requirements. They need to focus on the demographic factors as family income
while designing their products. The product development helps in increasing the
consumer value. When these FMCG products reach the right customers at the
right place and right time, there will be more customer satisfaction.

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