Final Report

“A study of performance and growth of Saras Dairy, Alwar [AZDUSS Ltd.]”

Batch 2006 – 08

A Report Submitted in Partial Fulfillment of the Requirement of MBA Program

of ICFAI National College

Saras Dairy, Alwar

(ISO 9001-2000 and HACCP Certified)
(Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar)
Jaipur Road, Alwar-301001
Ph: (0144) - 2702644, 2701010

Submitted to:

Mr. Sandeep Kumar Kautish (Faculty Guide)

Mr. Amit Bhattacharya (Company Guide)

Submitted by:

Smita Choudhary (III Semester)

6ND11765
ICFAI National College, Alwar
On 07th July 2007

Final Report Page 1 of 48

TABLE OF CONTENTS

Acknowledgement.................................................................3
Declaration ............................................................................4
Preface....................................................................................5
Abbreviations.........................................................................6
Introduction of Saras..............................................................7
From the MD’s Desk..............................................................10
Organization chart..................................................................12
Objectives..............................................................................13
Tasks......................................................................................14
Daily schedule............................................................15
Targets....................................................................................16
Strategy..................................................................................18
Analysis of performance v/s target........................................20
Departments of Saras dairy....................................................21
Problems/constraints/limitations............................................28
Learning in the executive training.........................................30
Registered DCS chart.................................................34
Milk product manufacture..........................................35
Milk procurement chart..............................................36
Liquid milk sale chart................................................37
Turn over chart...........................................................38
Price change of Saras products..................................39
Performance at glance................................................40
Milk supply of Alwar city..........................................41
SWOT analysis..........................................................42
Conclusions............................................................................43
Award/reward received..........................................................44
Bibliography..........................................................................45
Glossary.................................................................................46

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ACKNOWLEDGEMENT

I express my heartfelt thanks to Mr. J.R. Dhaka, Managing Director, AZDUSS Ltd. for his
direction, help and motivation.

I express my sincere thanks to Mr. Sandeep Kumar Kautish (Faculty Guide), Mr. Amit
Bhattacharya (Company Guide, Plant Manager, Marketing, Saras Dairy, Alwar [AZDUSS
Ltd., Alwar]), Mr. L.C. Balai (Deputy Manager, Marketing) and Mr. Anil Kumar Mathur
(Deputy Manager, Administration) for their support and cooperation. They provided me their
valuable help and guidance during the training period.

I shall be highly indebted to the staff of the marketing department of Saras Dairy (AZDUSS
Ltd., Alwar) for the moral support they extended to me during the SIP training.

I also thank the booth/parlour owners and the respondents whom I surveyed for giving me
their valuable time and fruitful suggestions.

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DECLARATION

I hereby declare that this project work entitled “A study of performance and growth of
Saras Dairy, Alwar” is my work, carried out under the guidance of my Faculty Guide Mr.
Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya. This report
neither full nor in part has ever been submitted for award of any other degree.

Smita Choudhary (MBA III Semester)

6ND11765
ICFAI National College
Alwar

Final Report Page 4 of 48

PREFACE

Marketing is one of the most important functions in business. It is the discipline required to
understand customers' needs and the benefits they seek.

No study can be termed complete if there is no practical experience. Hence need for training
has become a real necessity. The training aims to prepare students through a process of
practical experience. Practical exposure no doubt has contributed a significant amount of
knowledge to me along with real life experience and was an ideal combination of academic
knowledge and practical experience.

Marketing activities can be regarded as lifeblood of all business concerns. In order to enhance
the performance of marketing department and overall success of a business concern, study of
consumer behavior and their satisfaction, sales and distribution channels, advertisement and
competitive advantages is necessary. The performance of a company is very much important
for an organization.

Saras Dairy, Alwar is in fact a very ideal location to gain practical experience. I am sure the
experience gained in short duration, will go a long way in all my future endeavors.

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ABBREVIATIONS

1. AZDUSS..........................Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar

2. DCS..................................District Cooperative Societies
3. FGS..................................Finished Goods Supply
4. FMP..................................Fresh Milk Products
5. HACCP............................Hazard Analysis Critical Control Points
6. ISO...................................International Standard Organization
7. OJT...................................On Job Training
8. SIP....................................Summer Internship Program
9. SKM.................................Skimmed Milk Powder
10. WMP................................Whole Milk Powder

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INTRODUCTION OF SARAS (AZDUSS LTD.)

Alwar Dairy is a dairy registered under Rajasthan cooperative act and is owned by thousands
of its milk producers members. It works on world famous Amul pattern. As all other
cooperative dairies, Alwar Dairy is a part of three tier structure i.e. Dairy cooperative society
at village level which form district level milk producer unions which are further federated in
state level federation. All three entities are autonomous and linked to each other by provisions
of their bye laws.

Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (AZDUSS Ltd., Alwar) is a
cooperative organization registered under Cooperative Act with Registrar of Cooperative,
Government of Rajasthan. It was established in the year 1972 to implement dairy
development activities in the Alwar district, under Operation Flood Program.

Chairman Mr. Ram Phal Gurjar

Managing Director Mr. J.R. Dhaka
Establishment year in Alwar 1972
Employees Permanent employees 197
Contract labor 150
Certifications ISO 9001-2000
IS 15000 (HACCP Food Safety Management System)
No. of registered Cooperative 795
Societies
Products Full cream milk, toned milk, double toned milk, skim
milk, dahi, paneer, ghee, chhach, lassi, shrikhand
New product Ice-cream and softy to be launched soon
Address Jaipur Road, Alwar 301001 [Rajasthan]
Telephone (0144)-2702644(Customer care), 2701010, 2333926
Fax (0144)-2342925
E-Mail rcdfalw1_jp1@sancharnet.in
Turn Over (2006-07) 99.15 Crore

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UNDERSTANDING ISO-9001-2000 AND HACCP

Introduction

Adoption of ISO-9000 and HACCP standards for an organization are order of the day and
need of the time to be on competitive edge in the Food Industry.
It demonstrates the ability of dairies of Rajasthan Co-operative Dairy Federation to satisfy the
needs of its customers and interested parties.
Today, almost all the major unions of R.C.D.F. are certified under ISO 9001-2000 and
HACCP, integrated quality and food safety management systems.
Nevertheless, understanding of the concepts of ISO 9001-2000 and HACCP is confined to
small section of top/middle management employees.
Therefore, an effort is being made through this article in a precise and simplified manner to
explain the basic concepts of ISO 9001-2000 and HACCP standards, which will surely help in
better understanding of these standards among the rank and file of the organization.

HACCP

HACCP is a food safety management system and has its origin in U.S. manned space
programme to ensure food safety to the astronauts in late 1960s.
The standard designed to keep food safe in outer space has now become a standard on the
earth.

What is HACCP:-

A system, which identifies, evaluates and controls hazards, which are significant for food
safety.

H- Hazard
A- Analysis
C- Critical
C- Control
P- Points

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Milk products of Saras dairy, Alwar

Types of milk

Product Name Packing Price FAT SNF Packing

Color content content
Full cream Gold Red Rs.23/litre 6.0% 9.0% ½ and 1 litre
milk
Toned milk Taaza Blue Rs.19/litre 3.0% 8.5% ½ and 1 litre

Double toned Smart Yellow Rs.17/litre 1.5% 9.0% ½ and 1 litre

milk
Skim milk Lite Purple Rs.15/litre 0.5% 8.5% ½ and 1 litre

Fresh Milk Products of Saras dairy, Alwar

Product Packing Price

Chhach plain 500 ml Rs.7
Chhach Namkeen 250 ml Rs.6
Lassi 250 ml Rs.7
Paneer 200 gm and 1 kg Rs.25 and Rs.120
Ghee ½ litre and 1 litre Rs.85 and Rs.170
Dahi 200 gm cup Rs.8
Shrikhand plain 100 gm cup Rs.8
Shrikhand Kesar Pista 100 gm cup Rs.9

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From the Managing Director’s Desk:
The Managing Director of AZDUSS Ltd., Alwar is Mr. J.R. Dhaka. His future plans and
strategies for the betterment of the organization are:

“To provide better milk procurement price along

with technical input service to member producers &
to procure maximum milk and to provide safe &
good quality milk and milk products at competitive
price to consumer. Thrust will be for better financial
health of milk union”

Interview of the Managing Director of AZDUSS Ltd., Alwar

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I interviewed the Managing Director of the organization Mr. J.R. Dhaka on 22nd April 2007.
Here are the excerpts from the interview.

Question 1: Do you inspect the plant regularly?

Answer: Yes, I inspect the plant daily.

Question 2: What do you observe while inspecting the plant and the office?
Answer: House keeping, hygienic condition, people are at work place.

Question 3: What is the cooperation level of your employees?

Answer: Cooperative

Question 4: What are your future plans and strategies?

Answer: Strengthening milk procurement and milk marketing.

Question 5: What are the promotional activities you conduct to promote your products?
Answer: Mouth publicity, awareness programmes.

Question 6: Do you organize events or seminars for your customers to make them aware
about your products?
Answer: Yes

Question 7: Do you conduct staff meeting for smooth working and better coordination?
Answer: Yes.

Question 8: Does any conflict arise between your staff members? If yes, what do you do
to resolve the conflict?
Answer: Conducting joint meeting.

Question 9: Do you provide training to your staff?

Answer: Yes

Question 10: What measures do you take to ensure smooth functioning of the
organization?
Answer: Discipline, timely payment and personal benefits of staff.

Question 11: Who is responsible for setting prices of Saras products?

Answer: R.C.D.F., state body and milk union.

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Final Report Page 12 of 48
Objectives
I joined Saras Dairy, Alwar (AZDUSS Ltd., Alwar) as an intern on 19th March 2007. I am
working in the Marketing Department of Saras.

The objectives of the Executive Training at Saras Dairy (AZDUSS Ltd., Alwar) are:

1) To identify the working of the organization.

2) To conduct an exhaustive analysis of the marketing department.
3) To increase the sales of the products that are prepared and marketed by the
organization.
4) To conduct an extensive study of the market place and the customer’s needs.
5) To understand the core business of the company, organization chart, key personnel in
the company, manufacturing units, marketing channels, financial policies, etc.
6) To do a comprehensive analysis of the company and prepare the SWOT (Strengths,
Weaknesses, Opportunities and Threats) analysis report for the company.
7) To build a good rapport with the company’s staff.
8) To understand the organizational structure and the top management team including the
Chairman, Managing Director and the Officers.
9) To do a practical and live observation of the work place.
10) To understand the attitudes and behavior of the customers.

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Tasks

The tasks specified by the SIP Company (AZDUSS Ltd., Alwar) are:

1) To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for
three consecutive years.
2) To conduct survey of Saras parlours and booths to know their problems and sort them
out. To get feedback from Saras parlours and booths.
3) To get feedback from customers and find their problems, satisfaction level, take their
suggestions and help AZDUSS Ltd., Alwar to implement those suggestions.
4) To take responses from people who do not use Saras products and find the answer to
the question, “Why they are not using Saras products”.
5) To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar.
6) To do entries of daily supply in the supply register.
7) To take demand of various Saras products from parlour/booth owners and distributors
through phone or personal contact in the prescribed proforma.
8) I was given the responsibility to guide 36 MBA students (working as interns in Saras
Dairy, Alwar) and assign them their tasks and duties on a weekly basis.

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My Daily Schedule
My tasks at the On Job Training are to study the working of the Saras plant, gather complete
information about Saras, conduct market and booth surveys and organize visits for people to
see the Saras plant.

The daily schedule that I follow to complete these tasks is:

 Sign in at the company office at 09:30 AM
 Make a plan for the whole day between 09:30 AM to 10:30 AM.
 Go to the field to conduct market survey and booth survey from 10:30 AM to 12:30
PM.
 Collect information about the Saras dairy from various departments from 12:30 PM to
01:30 PM.
 Lunch time is from 01:30 PM to 02:30 PM.
 Organize visits for the visitors from 02:30 PM to 03:30 PM.
 Visit the plant to understand the working of the plant from 03:30 PM to 04:30 PM.
 Discuss with my company guide the tasks for the next day from 04:30 PM to 05:00
PM.
 Sign out of the company office at 05:00 PM.

Note:
1. Every Saturday I go to Jaipur to submit my weekly report and attend the session
organized by ICFAI National College, Jaipur for student development.
2. Sunday is weekly off.

Final Report Page 15 of 48

Targets

“Target is defined as goal which has to be fulfilled and sounds compulsiveness.”

Without setting target it is difficult for anybody to achieve his/her objectives.

The targets that were set for me during the training are:

1) To make maximum people aware of Saras.

2) To organize free testing camps to test the purity of milk.
3) To increase the sale of Saras products.
4) To implement human resource management techniques to increase the satisfaction
level of the employees of AZDUSS Ltd., Alwar.
5) To interview 500 homes to know their views and opinions about Saras products.
6) To organize plant visit for 250 people to show them the plant and tell them the
processes that the Saras milk undergoes and how different Saras products are
prepared. The purpose of organizing such visits is to tell the people about the many
advantages that Saras offers them like
a. Hygienic plant
b. High nutritional value of its products
c. Easy availability
d. Good storage facilities

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 During the course of my training at Saras dairy (AZDUSS Ltd., Alwar) I was assigned many
tasks and targets. In this section I present the targets and tasks in a tabular form.

Targets and Tasks Assigned to me

S.No. Targets/Tasks Date

1. To conduct Survey of 500 people 19th March 2007 to 04th July 2007

2. To organize plant visit for 250 people 19th March 2007 to 30th June 2007

3. To survey 9 parlours and 210 booths 08th April 2007 to 18th June 2007

4. To interview people of the marketing 23rd April 2007 to 27th April 2007
department
5. To take demand from various stations 13th May 2007 to 04th July 2007

6. Completed initial report, synopsis interim Initial Report 31st March 2007
report, management thesis and final report. Synopsis 07th April 2007
Interim Report 12th May 2007
Management thesis 05th July 2007
Final report 06th July 2007
7. Collected secondary data from various Got information about milk procurement,
departments Liquid milk sale, turn over
8. Interviewed the Managing Director 22nd April 2007
of the organization
9. Participated in milk testing camp organized 20th March 2007 to 25th March 2007
monthly
10. I was given the responsibility to guide 36 15th May 2007 to 04th July 2007
MBA Students.

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Strategy

A marketing strategy is a process that can allow an organization to concentrate its (always
limited) resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage.

A marketing strategy is most effective when it is an integral component of corporate strategy,

defining how the organization will engage customers, prospects and competitors in the market
arena for success. It is partially derived from broader corporate strategies, corporate missions,
and corporate goals. They should flow from the firm's mission statement. They are also
influenced by a range of micro environmental factors.

Survey Research

A survey research is defined as the method of collecting information by asking a set of pre
formulated questions in a predetermined sequence in a structured questionnaire to a sample of
individuals drawn so as to be representative of a defined population. These questionnaires are
administered to an individual or a group of individuals through interviews. Typical survey
objectives involve describing or learning from an ongoing activity by studying the changes in
behavioral patterns of the subjects of interest to the researcher.

Method of survey research used by me: Personal Interview(Door to Door

interview)

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Questionnaire Design
A questionnaire is a set of questions to be asked from respondents in an interview, with
appropriate instructions indicating which questions are to be asked, and in what order.
Questionnaires are used in various fields of research like survey research and experimental
design.

Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can

tap the necessary information from the respondent. Therefore, researchers always design a
tactful set of questions to probe and prompt the interviewee to give useful answers.
Questionnaires fall under various categories, such as structured, unstructured, disguised and
undisguised.

In the questionnaire I have used two types of questions:

Open Ended Questions

In open ended question design each question has a series of lines (or a blank space) in which
the respondents are encouraged to write, in their own words, how they feel about the topic in
question.

Close Ended Questions

Closed question provide a set of answers that the designer of the survey (based on prior
experience and responses in the pilot survey) considers will accommodate the majority of
potential responses.

The strategies and plans adopted during the training period to complete the assigned
tasks are:

1) The satisfaction level of employees of AZDUSS Ltd., Alwar was judged through a
well planned questionnaire. The questionnaire consisted of many questions covering
nearly all aspects required to judge the satisfaction level of employees.

2) The feedback from customers and general public was taken with the help of a well
designed questionnaire consisting of questions that nearly covered every aspect of
testing customer satisfaction.

Final Report Page 19 of 48

ANALYSIS OF PERFORMANCE VS. TARGET

I started my SIP training at Saras dairy (AZDUSS Ltd., Alwar) on 19th March 2007. I was
given the responsibility of surveying 210 booths, 9 parlours, 500 people and organize plant
visit for 250 people.
I was asked to increase awareness about Saras products amongst the general public by
organizing plant visits for them. For this I organized plant visit for many people and also mass
visits for
Another task assigned to me was to be a part of the milk testing camps organized by the
marketing department of Saras (AZDUSS Ltd., Alwar). For this we went to various locations
of Alwar city and tested the milk samples brought by the general public. We provided them
instant results and explained them the advantages of using Saras products. Many of them were
convinced that Saras products are better as compared to the products provided by local
vendors. This has increased the sale of Saras products, specially milk.

S.No.
Factor Target Performance Variance Reason

1. Plant visits 250 250 Nil -

2. Door to door surveys 500 500 Nil -
3. Booth surveys 210 205 5 Due to lack
of time
4. Parlour surveys 9 9 Nil -
5. Training to M.B.A. 36 36 Nil
students
6. Participation in free 6 days Full Nil
milk testing camp camp attendance

Final Report Page 20 of 48

DEPARTMENTS OF SARAS DAIRY (AZDUSS LTD., ALWAR)

Marketing Department

According to Peter Drucker, “The aim of marketing is to make selling superfluous.”

Marketing department is one the most important department in every organization.

The marketing activities of the organization include providing support to the milk
unions within and outside the state. The marketing department conducts various
surveys to know the needs and expectations of the customers.

Marketing department is responsible for the sale of liquid milk. It decides the routes by which
the milk is supplied as well as decides the number of booths in district and up country. It also
appoints distributors for supply of milk from dairy plant to different areas of district and up
country market. Presently in Alwar city there are 315 working booths and 10 parlours.
AZDUSS Ltd., Alwar is also marketing various fresh milk products in Saras brand like
chhach, lassi, paneer, shrikhand, dahi and long life products such as ghee, skim milk powder
and whole milk powder.

Various sales promotion techniques are used by marketing department to increase the sale of
Saras products like

 Incentive schemes to dealers

 Consultancy and hiring of marketing agency
 Hoardings
 Glow sign board
 Gift hampers
 Banners
 Advertisement through local cable
 Wall paintings

Final Report Page 21 of 48

Human Resource Department

Human resource is the most valuable asset for any organization. A human resource manager is
responsible to build up an effective workforce, handle the expectations of the employees and
make sure that they perform at their best. In management human resource management deals
with people. Each and every organization consists of people and an organization has to utilize
their services, develop their skills, motivate them, and make sure that they remain committed
towards the organization to achieve the goals of the organization.

According to Byars and Rue “Human Resource Management encompasses those activities
designed to provide for and coordinate the Human resources of an Organization.”

The human resource department manages the personnel serving the organization.
The Human Resource Department performs the following functions:

• Creation of posts and appointments.

• Verification of character and antecedents
• Pay of appointment
• Age limits
• Commencement of service
• Probation of appointments
• Certificate of health
• Record of age
• Consequence of particulars being false or suppressed
• Relinquishment of services by employees and discharge of probationers
• Termination of service of confirmed employee
• Superannuating and retirement
• Option to retire in certain cases
• Requirement of medical examination
• Retirement on medical grounds
• Date of retirement
• Privilege leave on retirement and encashment
• Postponement of retirement pending disciplinary action
• Voluntary retirement
• Abandoning duty after period of leave or otherwise

Final Report Page 22 of 48

Final Report Page 23 of 48
 • Appointment of experts
• Scale of pay
• Calculation of joining time
• Overstay after joining time
• Deputation of employees
• Special appointments
• Entry, exits and search
• Identification, attendance and entry
• Provident fund
• Gratuity
• Leave
• Tours and traveling allowances
• Transfers
• Tours abroad
• Conveyance facilities
• Service record
• Address for communication
• Recall from leave
• Shift working

Final Report Page 24 of 48

Operations Department

The operations department defines the working of the organization.

Processes: The steps for preparation of various products are as follows:

Process of making Ghee

Pasteurizer

Cream Separator
(To separate cream from milk)

Cream Tank
(To collect the cream)

Butter Churn
(Where the cream is churned to make butter)

Melting Vat
(The butter is melted in Melting Vat)

Ghee Kettle
(The melted butter boils in ghee kettle)

(This ghee is collected and stored in settling tank)

Packing Department
(Where the ghee is packed in 1 litre and ½ litre packs)

Final Report Page 25 of 48

Plain Chhach:

This is pasteurized milk which contains 3.1% fat and 8.6% SNF and acidity 1.08%. This milk
is boiled at 40 degree celcius and 3% curd is added. It is diluted by 40% DTM. This is packed
in 500 ml packets and supplied to the market for sale.

Namkeen Chhach:

In plain chhach various ingredients like 0.6% salt, 0.3% jeera, 0.15% rock salt and 0.1%
pepper is added to make namkeen chhach and packed in 200 ml packets and supplied to the
market for sale.

Lassi:

In plain chhach 12% sugar is added to make lassi and packed in 200 ml packets and supplied
to the market for sale.

Paneer Segment:

Milk from SILO

Paneer Vat
(In this Vat the milk contains FAT 5.0% and SNF 9.0%.)
The milk boils in paneer vat at 80 degree celcius and 2% citric acid is added in this milk to
separate FAT, SNF and water

Paneer Hook
(Then curded milk is pressed in paneer hooks for 45 minutes, then this paneer is put into
chilled water at 5 degree celcius)

Packaging Department
(Here the paneer is packed in 1 KG and 200 gm for sale)

Final Report Page 26 of 48

Facilities:

Saras Dairy, Alwar (AZDUSS Ltd., Alwar) provided the following facilities during
operations:-

1) Safety for workers

2) Medical facility
3) First aid facility
4) State of the art technology is used
5) Insurance cover for workers
6) Fire extinguishers are installed in the plant

Finance Department

Financial Management is defined as making available the required funds at an acceptable cost
and making sure that the funds are suitably invested according to the plan. This task is
performed by the Finance Manager of the organization.

Capital Structure Theories

The two sources of long term finance for a firm are

1) Equity Capital: - Equity capital is the owner’s own capital invested in the business.

2) Debt Capital: - Debt capital is the capital raised from other sources which is invested
in business.

Arrange finances through loans from ICICI and HDFC. Earlier loans were taken from Alwar
Gramin Bank.

Final accounts are maintained yearly.

Daily transactions are maintained in one day business.

Budget is prepared by the Accounts Department.

Final Report Page 27 of 48

Final Report Page 28 of 48
Financial Ratio Analysis

Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk
and return relationship of a firm of different sizes. It is defined as the systematic use of ratio
to interpret the financial statements so that the strengths and weaknesses of a firm as well as
its historical performance and current financial condition can be determined. The term ratio
refers to the numerical or quantitative relationship between two items/variables.
Ratio analysis is a systematic use of ratios to interpret the performance and status of the firm.

Current ratio: This ratio reveals the relationship between current assets and current
liabilities.
Current ratio = current assets / current liabilities

Quick ratio/ acid test ratio: The acid test ratio is the ratio between quick current assets and
current liabilities and is calculated by dividing the quick assets by the current liabilities.
Quick ratio = Quick assets / current liabilities

Final Report Page 29 of 48

PROBLEMS/CONSTRAINTS/LIMITATIONS

Any research in any field topic gives some new results, discovering new areas etc. but
there are always some limitations thereof.

The limitations that I came across during the course of my training at Saras (AZDUSS
Ltd., Alwar) are:

 The data collected is totally dependent on respondents’ views, which could be bias in
nature.
 Sometimes respondents do not give a response or give partial response. It is called
non response error. The reason may be lack of knowledge or unwillingness to answer.

 The sample size is small and it may not actually represent the whole population.
 During the survey I came across unfavorable weather conditions like scorching heat
and dust storm.
 There is limited time available each day and lot of tasks have to completed in a day
like preparing reports, conducting surveys, spend time at the office to gain knowledge,
etc.
 The study was conducted in the urban areas and it cannot be applied to the rural areas
because the tastes and preferences of people of rural and urban areas differ vastly.
 The answers given by the respondents are not always correct and may be misleading.
 It is very time consuming to go door to door in order to conduct a survey of various
homes and find their views and study their buying behavior.
 Sometimes it becomes very difficult to convince people as many of them are not at
all aware of Saras products and some are very stubborn. It becomes slightly difficult to
convince such people but it is a challenging task and a good learning experience.

Final Report Page 30 of 48

  Being a trainee, no confidential information about the organization is available. This
sometimes became a hurdle during the training.
 In some cases the respondent is not present at home.
 It is not possible and economically viable to recall respondents not present at home.
 Sometimes the respondents are not educated. Personal interviews are successful
only when the respondents are educated.

The limitations that Saras Dairy comes across are:

1) Low availability of raw milk in summers.

2) Dependence on milk producers.
3) Dependence on monsoons.
4) Milk can be produced not manufactured.
5) Increasing competition in dairy industry.

Final Report Page 31 of 48

Learning in the Executive Training
Each day is a new learning experience and so was the case during my Executive Training.
Every day I learnt something new. During my training I learnt the following things:
1) First and foremost I learnt to practically apply the knowledge gained through theory
classes and bridge the gap between academic institution and corporate world.

2) Understood the importance of job responsibility.

3) How coordination is maintained between different departments like marketing, human

resource, administration.

4) Learnt the ways to increase milk procurement.

5) Understood the distribution network adopted by Saras.

6) Understood how the management keeps its employees satisfied and retain them.

7) The processes that the milk passes through before reaching the final consumers.

8) The processes by which various milk products like ghee, butter, dahi, paneer, chhach,
lassi, shrikhand, etc. are prepared.

9) The marketing strategies adopted by Saras Dairy, Alwar (AZDUSS Ltd., Alwar).

10) Learnt how to conduct door to door interviews. Initially I felt slightly uncomfortable
conducting the interviews but with time I learnt a lot and became very comfortable
conducting door to door personal interviews.

11) Learnt to participate in milk testing camps and test the milk sample for purity.

12) Learnt to organize plant visit for visitors.

13) Learnt to take demand of Saras products from various stations through phone or
personal contact in the prescribed proforma.

14) Learnt how to build a good rapport with the staff. I was very successful in building
good rapport with the staff of the marketing department and other departments of the
organization as well.

Final Report Page 32 of 48

I worked as an intern in Saras dairy (AZDUSS Ltd., Alwar) which processes and markets
milk products which are quickly perishable. Therefore the marketing strategy of Saras is very
different from others. In this type of organization it is necessary to maintain a balance
between demand and supply and I learnt very well how to maintain a balance between
demand and supply. During the four month association with Saras I deeply understood many
facts about milk which were not in my knowledge earlier.

Frequently Thought Questions

Many times I used to think that what is milk? How is it useful for us? What are its
constituents and many more? During my association with Saras I found answers to all my
questions and queries.

Question 1: What is milk?

Answer: Milk is a lacteal secretion from the mammary glands of a healthy milky animal free
from colostrum. Milk has got mainly three constituents – fat (3 to 6%), snf comprising of
proteins, lactose, minerals etc (8 – 9%) and water (85%).

Question 2: Is Saras milk prepared from powder?

Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high
yielding and low yielding period is different in case of cow or buffalo, but generally winters
are called flush season due to high production of milk whereas summers are called lean
season when production is less. On the other hand, the demand is almost constant through out
the year. Hence during flush season, fat part of milk is preserved in form of white butter and
snf in form of powder after evaporating water. These two constituents are mixed and
processed during lean season to meet the demand. So powder is nothing but preserved snf / fat
of milk.

Final Report Page 33 of 48

Question 3: How is milk useful for us?

Milk is nature’s perfect food for all ages. It has almost all the vital nutrients needed for growth
and well being of human body. Milk is the richest natural source of calcium and essential
amino acids. It is good for bone formation. It is particularly beneficial for people recovering
from sickness, for sportsmen, for old people, for pregnant women and for growing children.
The doctor recommends a minimum daily intake of 250 ml. Or one and a half glass of milk
for every person. Normal cow milk has 4%fat and buffalo milk 6% fat. There is another
important constituent of milk- solids not fats these solids – not – fat. (or SNF, as it is
commonly called) comprise of proteins, minerals, carbohydrates and vitamins. For milk to be
nutritionally balanced, it has to contain both fat and solids- not- fat in right proportion.

Question 4: Why pasteurized milk is better than vendor’s milk?

Saras milk strictly conforms to PFA standards to comply with the legal requirement and to
provide wholesome nutritive food to the consumers. This means when we are buying Saras
milk, we are sure we are getting value for our money. We are sure of getting the “nature’s
perfect food” full 500 ml, 100ml, in every pack. We are sure of getting milk which has longer
life because of its superior bacteriological quality. The loose milk available from local
vendors in Alwar city often does not conform to PFA standards. It has fat and less solid-not-
fat than required. If our milk contains 0.5% less fat or SNF, we are paying up to 60 paise per
pouch extra. Besides, it is not uncommon to find artificial preservatives, not permitted by law
being added to loose milk. This has been authenticated in a recent campaign run by this
Sangh, in which it was found that more than 60% to 70% of milk sold by private traders and
loose milk contain artificial preservatives, not permitted by law. By compromising on the
quality of milk we may be depriving our children of essential life building proteins and
nutrients that only pure, high quality milk offers.

Final Report Page 34 of 48

 “SO, INSIST ON SARAS MILK JUST !!!!!

BECAUSE ONLY SARAS MILK GIVES YOU

TRUE VALUE FOR YOUR MONEY.

IT IS PURE, FRESH, NUTRITIOUS, HYGIENIC AND CREAMY.”

Final Report Page 35 of 48

 ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
REGISTERED DCS

900

800

700

600
NO.

500 Series1
400 Series2
300

200

100

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Series1
Series2 497 532 609 681 742 795

YEAR

Final Report Page 36 of 48

 ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
MILK PRODUCT MANUFACTURE

1500

1000
QTY. IN M.T.

GHEE
SMP
500 WMP

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
GHEE 720 678 607 612 754 1162
SMP 207 132 12 243 399 1118
WMP 290 342 255 80 197.5 155
YEAR

Final Report Page 37 of 48

 ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
MILK PROCUREMENT

90

80
QTY. 000,Kgs

70
2001-02
60
2002-03
50 2003-04
40 2004-05
2005-06
30
2006-07
20

10

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Series1 59.59 62.97 66.22 70.28 76.93 82.66

YEAR

Final Report Page 38 of 48

 ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
LIQUID MILK SALE

140

120
000' LIT PER DAY

100 2002-03
2003-04
80
2004-05
60
2005-06
40 2006-07
20

0
2002-03 2003-04 2004-05 2005-06 2006-07
Series1 18.6 29.56 35.81 67.03 132.69
YEAR

Final Report Page 39 of 48

 ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
TURN OVER

120

100
2001-02
80 2002-03
2003-04
Crore

60
2004-05
40 2005-06
2006-07
20

0
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
Series1 53.6 59.57 93.77 96.33 95.8 99.15

Year

Final Report Page 40 of 48

 Table showing change in price of different Saras products

Product Price before Price as on Price as on Price as on 01st

01st April 07 07th April 07 01st May 07 July 07 and
and onwards and onwards onwards
FCM (Gold) Rs.20 Rs.21 per litre Rs.22 per litre Rs.23 per litre

Toned Milk (Taaza) Rs.16 Rs.17 per litre Rs.18 per litre Rs.19 per litre
Double Toned Milk (Smart) Rs.14 Rs.15 per litre Rs.16 per litre Rs.17 per litre
Skimmed Milk (Lite) Rs.13 Rs.13 per litre Rs.13 per litre Rs.15 per litre
Ghee (1 litre) Rs.160 Rs.165 Rs.170 Rs.170

Dahi (200 g) Rs.6 Rs.7 Rs.8 Rs.8

Paneer (200 g) Rs.20 Rs.22 Rs.25 Rs.25

Paneer (1 Kg) Rs.100 Rs.110 Rs.120 Rs.120

Lassi (250 ml) Rs.5 Rs.6 Rs.7 Rs.7

Chhach (Plain) 500 ml Rs.6 Rs.7 Rs.7 Rs.7

Chhach (Namkeen) 250 ml Rs.4 Rs.5 Rs.6 Rs.6

Shrikhand Plain (100 g) Rs.7 Rs.7 Rs.8 Rs.8

Shrikhand Kesar Pista (100 g) Rs.8 Rs.8 Rs.9 Rs.9

Flavored Milk (200 ml) Rs.10 Rs. 10 Rs.10 Rs.10

Final Report Page 41 of 48

 ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR
PERFORMANCE AT GLANCE
S.No. Particulars 01-02 02-03 03-04 04-05 05-06 06-07

1 Registered DCS 497 532 609 681 742 795

2 Functional DCS 368 442 465 564 599 632

3 Prop. DCS (CC) 366 388 454 451 462 443

4 DCS Membership 59588 62966 66217 70281 76931 82655

5 Milk Procurement (per day) 87.74 88.79 97.82 108.9 89.65 79.54

6 Rate / KG (Rs) 9.98 10.77 13.56 12.29 13.22 15.05

7 Milk payment (Rs.Lakhs) 3195 3491 4856 4884 4325 4370

8 City Supply (TLPD) 15.5 18.62 29.52 35.71 67.03 132.69

9 M.D. Supply (TLPD) 75.71 101 144.78 143.5 120.05 0

10 Ghee Sale Total MT 817 652 485.45 1056.72 683.16 941.63

11 Ghee Sale (DCS) MT 104 79 80.66 203.48 213.83 225.1

12 Cattle Feed Sale (MT) 3035 3363 4636 6333 7001 6921.35

13 Turn Over (Rs. Crore) 53.6 59.57 93.77 96.33 95.8 99.15

14 Net Profit (Rs. Lakhs) 64.14 69.43 67.56 8.88 2.25 57.4

Table showing Saras Milk Supply of Alwar City with percentage growth

Final Report Page 42 of 48

Month 00-01 01-02 Gro. % 01-02 02-03 Gro. % 02-03 03-04 Gro. %
Apr 10259 9788 -4.59 9788 10214 4.35 10214 13094 28.20
May 9757 10944 12.17 10944 12946 18.29 12946 15341 18.50
Jun 9620 9862 2.52 9862 11683 18.46 11683 16806 43.85
Jul 10434 9975 -4.40 9975 12090 21.20 12090 17114 41.56
Aug 10431 10283 -1.42 10283 11322 10.10 11322 15654 38.26
Sep 9337 10255 9.83 10255 9890 -3.56 9890 16368 65.50
Oct 7910 8361 5.70 8361 9985 19.42 9985 13530 35.50
Nov 6699 7818 16.70 7818 8848 13.17 8848 11777 33.10
Dec 5883 7329 24.58 7329 8451 15.31 8451 10682 26.40
Jan 5733 6805 18.70 6805 8275 21.60 8275 10282 24.25
Feb 6904 8063 16.79 8063 9716 20.50 9716 11375 17.07
Mar 7280 8978 23.32 8978 10857 20.93 10857 12591 15.97
Total 10024 10846 120 108461 124277 180 124277 164614 388
Avg. 8354 9038 8 9038 10356 15 10356 13718 32
7 1
Month 03-04 04-05 Gro. % 04-05 05-06 Gro. % 05-06 06-07 Gro. %
Apr 13094 14181 8.30 14181 14683 3.54 14683 18855 28.41
May 15341 15318 -0.15 15318 18668 21.87 18668 19975 7.00
Jun 16806 16558 -1.48 16558 18371 10.95 18371 20888 13.70
Jul 17114 15623 -8.71 15623 16857 7.90 16857 21958 30.26
Aug 15654 14357 -8.29 14357 17102 19.12 17102 19572 14.44
Sep 16368 12392 -24.29 12392 15770 27.26 15770 20807 31.94
Oct 13530 13005 -3.88 13005 15179 16.72 15179 18197 19.88
Nov 11777 10828 -8.06 10828 14026 29.53 14026 16542 17.86
Dec 10682 10208 -4.44 10208 13177 29.09 13177 16012 21.51
Jan 10282 10807 5.11 10807 13352 23.55 13352 16279 21.92
Feb 11375 11640 2.33 11640 15241 30.94 15241 18034 18.33
Mar 12591 14110 12.06 14110 15314 8.53 15314 18593 21.41
Total 16461 15908 -31 159087 187740 229 187740 225712 247
Avg. 13718 13252 -3 13252 15645 18 15645 20519 20
4 7

SWOT ANALYSIS OF SARAS DAIRY (AZDUSS Ltd., ALWAR)

Final Report Page 43 of 48

 STRENGTHS WEAKNESSES

 The products are very pure  Low availability of raw milk

 The products are extremely  Dependence on farmers
hygienic  Reduced milk supply in
 The plant is ISO 9001- 2000 summers
and HACCP certified

OPPORTUNITY THREATS

 Milk is an essential  Milk can be produced not

commodity which every manufactured.
body uses.  There is always a possibility
 There is no competitor of of a competitor entering the
packed milk in Alwar. market.

CONCLUSIONS

Final Report Page 44 of 48

During the four months of my training at Saras Dairy (AZDUSS Ltd., Alwar) and the
surveys I conducted till date, I reached the following conclusions:

1) Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me
immense pleasure and satisfaction to be associated with such a reputed organization.

2) The organization maintains state of the art quality and hygiene standards.
3) A coin has two sides and it holds true for every organization, no matter how large or
reputed it is, there are always some small shortcomings along with the plus points of the
organization and Saras is no different.

4) Prices of Saras products have been hiked three times during my SIP. I observed that due to
frequent price hike people are losing faith in Saras and they think that Saras is very
unreliable and has no consistency in price. This factor has resulted in fall in sales.

5) Many people do not have faith in Saras products. They still believe that the products made
by the local dairies are better.

6) Some people feel that Saras products possess bad smell and that’s why they don’t use
Saras products.

7) Saras parlours/booths also face problems because sometimes there is no timely supply of
products to them. They receive the products late in the day and then these products have
to be sold the next day. People do not accept such products.

8) People believe that the Saras products are costly.

9) During the course of customer survey I also found the general public’s opinion about
different Saras products.

Final Report Page 45 of 48

Awards/Rewards Received
As Saras is a semi-government organization, therefore, it does not provide any stipend to the
interns or trainees.

During my SIP training I received a letter of appreciation from Saras Dairy, Alwar (AZDUSS
Ltd., Alwar) for doing my summer training with utmost dedication and sincerity.

During training I received many compliments from the Managing Director of the organization
and the members of the marketing department.

In the training period the management of Saras was very satisfied with my performance.

Copy of appraisal letter is enclosed.

Final Report Page 46 of 48

Bibliography
The definitions and data used in this report are compiled from the following sources:

1) Annual publication of Saras Dairy, Alwar

2) Business Research Methodology by C.R. Kothari.

3) Business Research Methods published by ICFAI University Press.

4) Definition of marketing by American Marketing Association

5) Definition of marketing by Peter Drucker

6) MIS department of Saras dairy (AZDUSS Ltd., Alwar).

7) Principles of Marketing by Philip Kotler and Gary Armstrong.

8) Principles of Marketing published by ICFAI University Press.

Final Report Page 47 of 48

GLOSSARY

The definitions of the terms used in this report are:

1) HACCP: HACCP stands for Hazard Analysis and Critical Control Points. HACCP is an
industry-wide effort approved by the scientific community as well as regulatory and
industry practitioners. This effort is designed to focus specifically on food safety,
including food safety in retail establishments. HACCP, or the Hazard Analysis Critical
Control Point system, is a process control system that identifies where hazards might
occur in the food production process and puts into place stringent actions to take to
prevent the hazards from occurring. By strictly monitoring and controlling each step of
the process, there is less chance for hazards to occur. HACCP is important because it
prioritizes and controls potential hazards in food production. By controlling major food
risks, such as microbiological, chemical and physical contaminants, the industry can
better assure consumers that its products are as safe as good science and technology
allows. By reducing food borne hazards, public health protection is strengthened.

2) ISO: ISO is the International Standard Organization. It is essentially a federation of

national standards bodies from around 150 different countries. Within ISO there are
constantly new standards and upgrades being worked upon. Established in 1947, ISO is a
non-government organization, with a mission broadly to promote the development of
standardization with the objective of facilitating international trade. ISO standards are
prefixed with 'ISO'. ISO contribute to making life simpler, and to increase the reliability
and effectiveness of the goods and services we use.

3) PASTEURIZATION: Pasteurization is the process of heating liquids for the purpose of

destroying viruses and harmful organisms such as bacteria, protozoa, molds, and yeasts.
The process was named after its inventor, French scientist Louis Pasteur. The first
pasteurization test was completed by Pasteur and Claude Bernard on April 20, 1862. The
food is heated enough to destroy the most heat-resistant pathogenic or disease-causing
microorganism known to be associated with that food. In this process a large quantity of
milk is held in a heated vat at 63 °C (145 °F) for 30 minutes, followed by quick cooling to
about 4 °C (39 °F).

Final Report Page 48 of 48