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Action is the language of commitment, it speaks louder than words. leading by doing, is the hidden condition of management course. The theoretical knowledge and classroom discussion have its own limitation. The project intends the study all aspects of business. The data used in the project report are obtaining mainly form the co-relation department, annual report extracts and other departments to suit the requirement of project report. Hence the purpose & interest of the subject is maintained. The industrial visit plays a dominant role to develop the practical viewpoint of student and also in marking them aware about the problem, opportunities and situation of industrial unit.


I am Lunagariya Amit C., A student of F.Y.B.B.A. studying in R.P. Bhalodiya College of commerce and business management undersigned that the project work has been done in this report is prepared by me under the supervision of Mr. Niraj Pandya.



Signature (Lunagariya Amit c.)


It is my great pleasure to present this report under gone at Gopal Dairy Rajkot. Though to prepare this type of report is not a easy thing. But under the guidance of Mr. A.C. SINHA and the head of the all departments, I can prepare this report so easy with the help of them. So I am thankful to them. I am very much thankful to SAURASTRA UNIVERSITY to give me a chance to prepare this type of project report so that I can get more practical knowledge. I am also thankful to my college who gave me the permission to prepare this project report. Again I am very much thankful to our teacher Mr. Niraj Pandya without his help this report is not possible and also thankful to all those who helped me in preparation of this report knowingly or unknowingly directly or indirectly.

Yours faithfully, (Lunagariya Amit c.)


General information
Introduction History & Development A brief outline of the organization

Production Department
Introduction of Dept. Organization Chart Types of Products Raw milk receiving Dock Manufacturing process

Marketing Department
Introduction of Dept. Organization Chart Distribution of Dairy Product Planning Pricing Policy Channel of Distribution

Advertisement Sales promotion Selling of milk for last five years Marketing research

Personnel Department
Introduction of Dept. Organization Structure Job Description Recruitment Selection Procedure Salary, Promotion & Training Employees Benefits and Services

Finance Department
Introduction of Dept. Organization Chart Capital Structure Other Information

Future Plans Conclusion



I started my industrial training from 03/11/2004 to 11/11/2004 RAJKOT DISTRICT CO-OPERATIVE MILK PRODUCER UNION LTD (RAJKOT DAIRY). As per name suggest it is a co-operative union. Rajkot Dairy was established with the help of Gujarat State in the year of 1956. The work of building & machinery installation had been completed in 1963 & this dairy also started its production in 1963. In 1963-64 two chilling center have also established one at wankaner & other at vichhiya. At present the dairy is managed by the Animal Husbandry dept. of the Gujarat state till 1970. Rajkot dairy is situated at Rajkot & it is located at Bhavanagar highway road, Dudha sagar marg, Rajkot.


As we know that Rajkot dairy established in 1956 & it started its production in 1963. Rajkot dairy came in existence in 1956 with the good corporation of UNICEF, it is located at Rajkot city with the help of Gujarat State. We have also seen further in introduction that two chilling center have established in 1963-64. The capacity was 5000 liter of milk storage but then after it has been expanded. From 1970 Rajkot dairy is managed by ANIMAL HUSBANDRY DEPARTMENT of Gujarat state Govt. From 1970 to 1972 during these two years it come into the fold of Rajkot district gopal cooperative milk producer union. 1972 on wards this dairy continues to be with union. On November 2, 1983 the mgt. of dairy was overtaken by the GUJARAT DAIRY DEVELOPMENT CO-OPERATION for the period of 5 years. At the end of the period of the dairy was handled by union. Now a nominal member of the Gujarat co-operative milk marketing federation ltd. Anand.





:- There are eight distributors, Maa Marketing Pooja Marketing Jalaram Marketing Radhe Marketing K Marketing Rutvi Marketing Gopal Marketing Jagdish Marketing

1) 2) 3) 4) 5) 6) 7) 8)


Established in 1956 ADDRESS ORGANIZATION :- Rajkot Distributor Cooperative Milk Producer Bhavnaga

Road, Dudh Sagar Marg, Rajkot- 360003.


:a) b) c) d) e) Rajkot District co-operative bank. Bank of Baroda. State Bank of India. State Bank of Saurashtra. Jamnagar District co-operative Bank Ltd.


The production function of a business is concerned with the creation of a product or service required to satisfy customer needs, wants and desires. In any business that supplies a needed product or service, it is quire obvious that activities of production system must be closely related to the customer demand as reflected in the continuous flow of orders. Production means creation of utilities and covers all the activities of procurement, allocation an utilization of resources such as Labour, energy, materials, equipment, machinery, etc. Utilities are goods and services which have want-satisfied powers. Marketing research enables the enterprise to determine the nature and character of output of utilities, i.e. goods and services required by customers. When principles of management are applied in the specific area of business such as production we have production management involving planning organizing, directing and controlling the production system-a subsystem of the business enterprise which

itself is the subsystem of its environment. Production management is the process of effectively programming co-ordaining and controlling production i.e. the operations of that part of an enterprise, which is responsible for the actual transformation of materials into finished products. It deals with man machine organization to accomplish both productivity and satisfaction the desirable end results.


General Manager Production Manager Deputy Manager

Assistant Manager

Assistant Manager

Shift Manager

Shift Manager

Shift Manager

Technical Officer Dairy supervisor Plant Operator



Gopal Skimmed Gopal Toned Gopal Standardized Gopal Full Cream

0.5% 3.0% 4.5% 6.0%

8.7% 8.5% 8.5% 9.0%

4.5 Rs. 7.5 Rs. 8.0 Rs. 9.0 Rs.

Flavor Milk
Kesar Rose Elaichi

Gopal Butter Gopal Ghee Gopal Penda Gopal Buttermilk (Amrut)


Weighting Sampling Grading Pumping

Chilling (8-9 c)

Pasteurizing (77-78 c in 16-18 sec)

Storage (5 c)


Gopal Milk (500 m.l.)

Ghee (500 m.l.)

Flavour Milk


Butter Milk

If there is sour milk then it is gone for the ghee, butter milk, etc.


Rajkot dairy sells milk & produces ghee, butter, flavor milk & pendas and put them in the market. There are different processes for production of different items. The processes of production of some main items are as follow.

Procurement department handles this stage i.e. raw milk receiving stage. Raw milk comes from different kind of label, it means that if there is black latter on came then it called as buffalo milk & if there is red latter on cane then it called as cow milk. Milk, which is coming from chilling, center i.e. wamlamer & vichhia, this milk is being received in milk tanker. In this stage, milk received from villages, carried down for weighting at weighting tank. During this process milk also passes through testing of color, flavor, taste etc. process by a trained person. If there is slight change in the milk that type of milk cane removed immediately. After this milk for laboratory

testing from each cane then after milk is gone for the pasteurizing process. Pasteurizing process is also called as head stock treatment. In this treatment milk is given 72c.g. to 78c.g. heat or then after milk is frozen unto 4 to 6 c.g. & then it is taken into different storage tanks as per the consumers demand. After this, milk is packed in the polythine bags. Each bag contains half liter, and then it is distributed to the consumers. So above process is called as a process for the production of milk.


In this process first of all, heated the raw-milk and then add in it some particular essences & sugar. Then, after above process Flavor Milk is ready but after this process its packing in the bottles and then keep it in the separate tank and then heated it at a 121 c. temp. do the above process Flavor Milk can be stay well. In Flavor Milk, there are three different qualities (A). Kesar (B). Rose (C). Elaichi.


After the separation the excess cream is located in a stiller and give a CENTRIFUGAL CHURN, which have gears. As the gears are change, it gains speed and formation of butter takes place some quantity of butter is sent for packing and the rest is for making ghee to the ghee section.

In Raw Milk Receiving Dock when there is sour milk then it is gone for ghee process. In ghee section, butter is taken. Here, butter is taken to the butter-melting tank. Butter is heated 50c to 60c to make it liquid. This liquid is results in two larger. Upper layer is liquid fat and lower layer is buttermilk; it is run out before making ghee. Upper layer of liquid butter is taken in ghee kettle.

First of all milk is given heat, till it converse into the solid firm from liquid firm. Then after this, sugar is added into the solid firm. Then it is given shape & after shaping it packed into 250 gms., 500 gms., and 1000 gms. Boxes.

Contain of penda are as follow.

5 liter milk,

450 gms. sugar

1000 gms. penda

This dairy is produces following types of penda

Chocopuri penda Malaypuri penda Kesar penda Elaichi penda


In this process first of all, heated the raw-milk with pasteurized at a 77-78 c. temp. Then added the buttermilk in it. Thats why in particular time it becomes a curds, then after some other process in curds it is become buttermilk.

[ Head of this Department : - (G.G. DAVE) ]


1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004

Buffalos milk
76,59,327 89,98,917 1,12,65,949 1,27,94,308 1,70,44,651 2,25,05,870 2,50,43,078 3,62,78,842 3,10,17,330


1995-1996 1996-1997 1997-1998 1999-2000 1998-1999 2000-2001 2001-2002 2002-2003 2003.2004

Cows milk
30,73,674 33,37,313 36,73,886 37,35,532 50,01,549 53,01,093 55,60,455 86,68,775 68,79,106


Marketing is a very wide meaning Discovering the consumers needs and wants and fulfill those by producing goods and services so only selling is not marketing but it is a part of marketing. In our training period we came to know that marketing department of this dairy is separate from this unit. In this department two separate departments perform marketing activities.

PURCHASE DEPARTMENT:In this department there is only purchase of raw

materials, equipments, machineries, etc.

This department looks after selling of products like milk, buttermilk, penda, ghee, powder etc. of this dairy. So form above we can clearly see that in this unit marketing department is divided in two parts.



Sales Dept. Dept. Manager

Purchase Manager

Assistant Manager

Assistant Manager

Organizer Senior







1. Distributors in Rajkot city
Ma Marketing Pooja Marketing Jalaram Marketing Radhe Marketing K Marketing Rutvi Marketing Gopal Marketing Jagdish Marketing

2. Distributors in Jamnagar

Mayur Enterprise Patel dairy farm

3. Distributors in Morbi
Gayatri Marketing Samay Sales Harbhole Marketing

4. Distributors in Kuvadava
C.K. Agency Jayraj Marketing

5. Distributors in Gondal
Patel dairy farm


Production planning is an engine of marketing process. So product planning gives that idea regarding how to produce, when to produces, how much to be produce etc. Dairy products are mostly perishable product. Particularly for production of milk, it is a perishable product; its raw material i.e. raw milk is also perishable. So from raw material to final product quick decision making power and planning is require. They made product planning according on the basis of demand situation. There are some steps regarding product planning followed by this dairy is given below.

1) Demand for particular goods. 2) Market price and sales price. 3) Cost of production. 4) Aim of dairy. 5) Quality of raw material.

Price is economic value of product. Price is the means of effective communication. We have a kind of price equation. Generally, price policy provides guidelines to the marketing manager to evolve appropriate pricing decisions. Money (Rate) = Bundle of expectation or satisfaction Here General Manager fixing up the prices on the basis of consumers satisfaction main base of fixing of price is cost of production. In this dairy maintenance cost is very high so price is also higher than some other private dairy farms. Though manager tired to decrease the prices of products to increase the sales.

The main factors for deciding the price are as follow. Cost of product Quality standard Substitution products Credit policy Transportation charges etc. Thus, price policy provides guidelines to the marketing manager to evolve appropriate pricing decisions.

In Rajkot dairy one level of channel of distribution is there because Rajkot dairys products are perishable. One level of channel which is prefer by this dairy is as follow. Manufacturer Distributors / Wholesalers Retailers Consumer

In one level of channel of distribution this dairy provides milk to the retailer by way of vehicles of dairy like tempo, truck, etc. transportation have by the distributor there are getting delivery from the Rajkot dairy dock. Total sale of Rajkot citys above 25000 liter per day. The main distributors of Rajkot dairy are: 1) Rajkot city 2) Jamnagar city 3) Morbi city

And other are Shapar(Veraval), Kuvadava and Gondal. Market handle by sale department itself. This unit also provides home delivery facility to its consumers. Many deliverymen in Rajkot provide milk to consumer from milk booth.


Modern Market is a competitive Market. Advertising is the best tool for increase the sales. Advertising is the powerful tool. Without advertisement the company cannot stand in the market. Advertisement is a mass media of communication. Thus none of the company can stand in the market without powerful advertisement. Advertising plays an important role in any unit. Thus, success of market programmed, it largely depends on advertising.

As a sales promotion tool advertisement plays an important role in developing products brand name and market. Yet Rajkot dairy spends quite a little bit after advertising. Quality of the product speaks for itself. So the company does not spent more after advertising. In spite of this they give advertisements through the following media. 1) Television 2) Wall painting 3) News paper 4) Magazines General manager & board of director fix advertising budget of Rajkot dairy.

Sales promotion refers to all the activities for increasing the total sales & demand of products. Rajkot dairy also promote such type of sales promotion activity. Rajkot dairy takes part in held during different type of exhibitions like on 15th Aug and 26th Jan. It also takes part in science & health fairs. This is done in order to create awareness among the people for use of pasteurized milk rather then raw milk.

They also gave milk to the people for taste in free during these exhibitions and fairs to deterrents taste pasteurized milk and raw milk. Now days in the competition are sales promotion activities become most powerful in any of the organization to promote the sale. This dairy also tries it best for sales promotion.







2004-05 -----------





(Average of milk is in liter for per day).

Marketing research is a systemizing gathering recording and analyzing the data about marketing problems to facilitate decision making.

In Rajkot dairy introduce marketing research activity by door to door observations. So that they can easily know the ideas of consumer of Rajkot dairys product and they (Rajkot dairys mgt.) can also know problem of the consumer & accordingly they try to solve the problems. By this dairy mostly marketing research made when they want to introduce new product or new booth among with people. Thus, marketing research concentrates on the study of product planning, advertising and sales promotion, distribution structure, marketing strategies, marketing competition, buyer behavior and attitudes in the marketing place.


In all business concerns there is one common element, i.e. resources. Work force of an organization is one of the most important

inputs of components. It is said that people are our single most important asset. Because of the unique important of human resources and its complexity due to ever-changing psychology, behavior and attitudes of men and women at work, personnel function i.e. manpower management function is becoming increasingly specialized. The personnel function or system can be broadly defined as the management of people at work-management of managers and management of workers. Personnel function is particularly interested in personnel relationships and interaction of employees- human relations. A system is an organized whole, consisting of interrelated and interdependent parts. A business enterprise is an open adaptive system describing the principal elements of the input-transformationoutput system operating in its environment. The main duties & responsibilities followed by this department in this dairy are as follow.

Organizational planning Recruitment & starting of employees. Promotion & employment Training and development of employees. To increase employee relationship


General Manager

Personnel Manager

Assistant Manager


Head clerk

Clerk Watchman Peon


Time Keeper



Job description process is adopted in Rajkot dairy for managerial level of executive level persons. In this dairy, this process use in specific when they selected as executive person at that time they are given information about job description to executive persons information like. 1) Nature of job. 2) Working condition. 3) Duties and responsibilities. 4) Position and status in organization. 5) Job summery. 6) Information about securities and services. 7) Information about machine, tools, equipments etc.


Once we know the manpower requirements, we can proceed to the problem of attracting interested application and then choosing the best of there for the available jobs. Recruitment return to the attempt of getting interested application and providing a poll of prospective employees so that we can select the right person for the right job from this fool. Recruitment procedure and selection process. Gopal dairy mostly follows external sources for recruitment procedure. When org. wants to take expert person through this dairy govern advertisement in local newspaper. There are some external sources for recruitment like: a) Reference by present employees b) Employees exchanges c) Educational institution etc.


The selection procedure works best on a foundation provided by job analyses. Job description and job specifications that tell to the kind of person that is necessary to fulfill properly the responsibilities of the job. The selection procedure involves a series of personal studies to discover the qualification and characterization of an applicant for the job. The candidates are subjected to screening tests and it be successful under each scenery teot, he may be finally selected and appointed by the org. There are some stages of ideal selection process.

Preliminary interview Application blank Selection tests Final interview Checking of reference. Medical or physical examination Final selection

Rajkot dairy adopt only one step employment interview company gives preference to the most qualified person. Interview is hold by selection committee of the dairy. Such a way, this dairy select any new personnel company adopts such type of small selection procedure. So it is short 7 sweet processes, which is exactly for this org.


SALARY:This dairy introduce time wage (salary). It pays wages and salaries according to government provision. The salary is paid to the workers and employees on a monthly salary bases. Main ratio & data, which are concerned with our study, is collected as under. Pay scale decided by Govt. Dearness allowance 95% House rate 10% of pay scale. This unit also provides bonus facility to executive persons for every year.

PROMOTION:Promotion involves a change from our job to another thats better in terms of status & responsibility. This dairy also gives promotion to its employees. In this unit promotion is given two ways.

Promotion on seniority basis. Promotion on qualification basis. So here we can see the promotion policy of the unit, it is clearly emphasis in this policy that seniority & the qualification is must & important.

Training improves working capacity and quality of employees. Rajkot dairy conduct training programmed under two method. 1) Vestibule training:The training is not given on the job but workers are trained on specific job in a special part of the plant by models. 2) Apprenticeship:In this programme tend towards more education than on the job training or vestibule training in that knowledge and skill in doing a craft or a series of related jobs are involved. The dairy years time limit is fixed for Apprenticeship training then after the training has given permanent charge of job.


Dairy provides benefits & services to the employee dairy provides many common services and facilities like canteen facilities, residential houses to the workers at a nominal rent of Rs. 40 per month. The dairy also gives facilities like gratuity, provident fund, LIC, loans, insurance etc. to its employees. The employee state insurance scheme (ESI scheme) has been also established for the welfare of the workers. According to this scheme, the management of Rajkot dairy to credit Rs. 20 to employee account every month provides Rs. 10.

(Head of the Department :- LILA BEN)


Finance is the most important part of any business. Finance is lifeblood of every business. Business is not possible without finance. In Rajkot dairy finance department is totally separate from other departments and account manager handles this department. Finance manager Mr. J. P. SHAH. This department has line and staff type of organization so it is easy to understand and follow it. Here authority flows going upward to downward and responsibility flow is going down ward to upward. There are so many duties of this department.

1. 2. 3. 4. 5. 6. 7.

Management of working capital. To decide the cost of production of milk and its products. Keeping accounts. Provident fund scheme work. Provision of sales tax, central excises etc. Bonus. Band transactions and reconciliation.

General Manager

Financial Manager

Managing Accountant

Senior Cashier

Senior Accountant

Junior Cashier

Senior Assistant

Junior Assistant



We have collected some valuable information from Annual Report of the dairy. Which has given to us such information is regarding capital structure of dairy are as under.

Authorized share capital (1,00,000 equity share of Rs. 100) Paid up share capital



In case of Rajkot Dairy they have accounts in banks namely I. Rajkot District Co-operative Bank. II. State Bank of India. III. State Bank of Saurashtra. IV. Bank of Baroda. V. Jamanagar Dist. Co-operative Bank LTD. But, their main bank is Rajkot District Co-operative Bank that means firm does banking work mostly through Rajkot District Cooperative Bank.



In its initial period it was sponsored by UNISEF, moreover

NDDB (National Dairy Development Board) plays a vital role in providing finance to the Rajkot dairy.

Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04

Amount of share capital (Rs.) 40,89,800 39,96,900 43,97,300 47,22,500 57,13,000 77,91,500

2. LOAN Rajkot dairy also obtains loan from many financial institutions like N.D.D.B., G.D.D.C., G.S.F.C., and Banks etc. In 2004 the secured and the unsecured loan are as under. Secured Loan Unsecured Loan Rs. 3,20,85,472.64 Rs. 22,07,444.33

(Head of the Department :- J. P. SHAH)

Rajkot dairy sales all increasing day by day. So, they want more finance for the smooth running of the company. In future plan of this dairy provided proper management in organization, or steps are to be taken towards modernization of this firm, this dairy will progresses more and it can also earn profit if utilization of financial sources is to made by management of this firm. As present 330 villages are covered by Rajkot dairy, which is, wants increase at maximum level. There sales as much as possible by more hard-work and decrease in price, increase in agents commission and call more and more schools and colleges for serve in future.

The purpose of the study was to draw some light on philosophy, culture and sentiments of organization. After visiting Rajkot dairy, I feel very glad that I had be a part of it for sometime. This visit gave me much practical knowledge and a very good experience. The unit is also enquired with the latest technologies and modern machines. The staff and workers are also well organized and co-operative. Looking to the units properly and orderly management I would like to give my best wishes for each and every step they take for expansion and for attaining a bright future.


Modern Business Organization and Management


Marketing Management


This is to certify that the industrial practical visit report on Rajkot Dairy is the original work of Mr. Lunagariya Amit of F.Y.B.B.A. has carried out project work of this report is his contribution by his own affords under my supervision.


Signature (Project guider)

Signature (Principal)

Prepared by Guided by College Bhalodiya Academic year Class :-


Lunagariya Amit Mr. Niraj Pandya :- Shree R. P.


2004 2005

F. Y. B.B.A.