DAIRY PRODUCTION

A mini project report submitted in partial fulfilment for the award of degree of MASTER OF BUSINESS ADMINISTRATION By

PAVAN KRISHNA G
( Regd No: 13KQ1E0038 , A-SECTION )

Under the esteemed guidance of

DR.V.VENKATESWARA RAO
Professor

DEPARTMENT OF MANAGEMENT STUDIES PACE INSTITUE OF TECHNOLOGY AND SCIENCES

(AN ISO 9001:2008 CERTIFIED INSTITUTION) (APPROVED BY AICTE,AFFILIATED TO JNTUK,KAKINADA) 2013-2015

CERTIFICATE

This is to certify that the mini project report entitled ongole dairy production is a bonafide work carried out by pavan krishna G , Regd No: 13KQ1E0038 , A-Section who carried out the project under my supervision in partial fulfilment for the award of degree of Master Of Business Administration from JNTUK, Kakinada during the academic year 2013-2014.

Signature
DR.V.VENKATESWARA RAO, PROFESSOR .

Signature
of candidate

INTRODUCTION

One must have a contemporary understand of this dynamic world to survive or proper therein. Never in the past has the role of manager in India as crucial and exciting as now. The ongoing economic reforms programme has created infinite opportunities. There has been an increase in milk income gradually development have broadened the knowledge of consumers. They have now become choosy resulting in winners & looser at the same time winners those who monitors needs, identifies opportunities and create value. It is the market place not the factory that ultimately determines which company will succeed. Marketing is practiced not only by manufacturing concern & their channel members but all kinds of individuals and organization. No politician can get the required votes to win and no r e s o r t t h e n e e d e d t o u r i s t t o f l o u r i s h wi t h o u t d e v e l o p i n g a n d c a r r yi n g o u t t h e s o u n d marketing plans. Authentic market practice is not the art of selling what you make as much as knowing what to make. It is the art of identifying and understanding customers needs and coming up with solution that satisfies them and pro duces riches for firms profitability. As we all know, future is always uncertain. More precisely when there is volley of brilliant competitors and each wants to be the market leader. So in the light of intense competition satisfaction through product innovation maintaining the standard quality their in, failing which no amount or deal of promotional measure or scheme can compensate at length. Competitive forces have compelled the companies to focus on specific segment of the market with frequent product innovation and rather new products and launching thereof with greater confidence. The present study gives special emphasis on the various strategies to be adopted by PRAKASAM DISTRICT MILK PRODUCER COMPANY LTD. T h e e n t i r e s t u d y h a s b e e n d i v i d e d i n t o c h a p t e r s a n d further subdivided into segments from each dealing with a separate aspect in a simple and lucid style and clarification has been given top priority throughout the project.

OBJECTIVE OF THE STUDY The most important objective of the project is that it is obligatory on the part of the student of M.B.A. programme to undergo the convention of the business administration in the partial fulfillment of M.B.A. degree besides, project study is a sort of practical training of eight weeks thus the students are benefited by undertaking such a study as it helps organization in overcoming administrative, financial, marketing and other problems whatever they may be interested in for the sake of simplicity the objectiv es of this study can be classified under three heads:

PRINCIPAL OBJECTIVES To study the Distribution process of milk. To find out the various strategies to be adapted by PRAKASAM to counter milk sales of Heritage in PRAKASAM DISTRICT. To find various ways to increase Praksam milk sales in PRAKASAM DT. To discover the various factors which hurdles people to take PRAKASAM milk. To identify various factors which motivates people to use Prakasam milk. To discover the main reason beyond shifting of customers from Prakasam milk to other milk. The other objective is to know about the customer satisfaction level associated with the product and the customer preference level. To increase customer satisfaction and recapture the market share by fulfilling the customer needs. To study the factors affecting the consumption pattern.

METHODOLOGY COLLECTION OF DATA The data was collected from two different sources PRIMARY DATA:

The primary data has been collected with the help of a questionnaire, answers directly given by PRAKASAM DT MILK PRDN COMPANY LTD. CEO & Staff.

People we met:

CMD - MR.M.SIVA RAMAIAH Garu MARKETING DPT G.M. A.B.MALLESWARA RAO FINANCE DPT MR. PARAMESWARAIAH ESTABLISHMENT ADMIN MR. NAGESWARA RAO

SECONDARY DATA:

Secondary data is what the researcher collects from different sources. It also helps to get elaborate information to do the research.

Secondary data has been collected from Internet Company annual reports Govt. Publications Past Records and Files Journals and periodicals pertaining to different brands and segments of milk.

DAIRY INDUSTRY IN INDIA Indian dairy Industry - a profile The Dairy Industry in India made rapid progress, particularly during the last two decades. Today, INDIA occupies first position in milk production in the world, surpassing the U.S. Today, India is 'The Oyster' of the global dairy industry. It offers opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the international dairy processor in India. The Indian dairy industry is rapidly growing, trying to keep pace with the galloping progress around the world. The liberalization of the Indian economy beckons to MNC's and foreign investors alike. The credit definitely goes to operation flood, which has played a key role in the development of dairying. The employment potential of Indian Dairy sector is substantial. This sector provides additional income and generates job opportunities for 180 million farmer families. More than 70% of marginal farmers and labourers maintain dairy animals to supplement their incomes. In India, there are 10.1 million farmers who are members of 77,000 village Dairy Cooperative Societies, each of which is affiliated to one of 170 district and regional Cooperative Unions, which in turn are a part of state Co-operative unions, which in turn are apart of a state Co-operative Marketing Federation. The Co-operative sector has contributed significantly for the success of White Revolution in India. There are more than 97,000 milk Co-operative Societies in 264 districts. This sector is growing at the rate of 6.5% per annum. The first large scale and systematic breakthrough in Dairy operation milk producers union was at ANAND (ANAND MILK UNION LIMITED) , Gujarat abbreviated to AMUL which in vernacular means HIGHLY VALUABLE or BEYOND ALL PRICES. INDIAN DAIRY CORPORATION (IDC):

The INDIAN DAIRY CORPORATION (IDC) was set up under companies Act on 13th Feb 1970. It is a government of India under taking. The immediate need to set up IDC was to handle the OPERATION FLOOD. It became mainly a financing cum promotional agency of central government. OBJECTIVES: To promote dairy industry in the country. To assist the state government and other organization including co-operative societies interested in the promotion of dairy industry to meet the requirement of milk & milk products. To provide a package of technical inputs for enhancement of milk production. Resettlement of city based cattle in the rural areas. To assist in expanding the capacity and operation of existing dairies in big cities and rural areas. To assist development of allied industry required to meet the needs of dairy development.

DAIRY INDUSTRY IN ANDHRA PRADESH: The milk producers have faced a lot of problems in the process of production and marketing of milk namely improper transport facilities, poor technology and absence organized system of processing, marketing and pricing. It was at this context, that the Govt. of A.P. has viewed to continue a DAIRY DEVELOPMENT CORPORATION to safeguard the interests of milk producers and ensuring adequate supply of flush milk at a reasonable price to the urban consumers. As a result the APDDCF came into the existence on 2nd April, 1974. A.P. has an excellent potential for milk production with the progressive farmers who are responsive to the new technology and scientific practices.

A.P. DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION (APDDFC) APDDFC was constituted on 2nd April in 1974 with an aim to implement OPERATION FLOOD 2 programme through active involvement of producers in organizing milk production, procurement, processing and marketing a three tier co-operation structure as per the national policy of government o f India. The Three Tier system consists of primary unions at district milk shed level and federation at state level. Indian Dairy Development Corporation owns the responsibility of implementation of operation flood programmes, which provides money assistance of up to 70% towards loans and 30% as subsidy.

THE CO-OPERATIVE MILK PRODUCERS UNION IN A.P.: Sri Vijaya Visakha Co-operative Milk Producers Union,Vizag. The Godavari Co-operative Milk Producers Union, RAJAHMUNDRY. The Krishna District Co-operative Union, VIJAYAWADA. The Guntur District Co-operative union, VADLAMUDI. The Prakasam District Co-operative union, ONGOLE. The Nellore District Co-operative union, NELLORE. The Chittoor District Co-operative union, CHITOOR. The Cuddapah District Co-operative union, PRODDUTUR. The Kurnool District Co-Operative union, KURNOOL. The Nalgonda District and Co-operative Union, HYDERABAD. Medak District and Co-operation Union, MEDAK.

COMPANY PROFILE

Prakasam Milk Producer Company Limited is a Private Company incorporated on 13 February 2013. It is classified as Indian Non-Government Company and is registered at Registrar of Companies, Hyderabad. Its authorized share capital is Rs. 30,000,000 and its paid up capital is Rs. 14,699,700. Prakasam Milk Producer Company Limited's Annual General Meeting (AGM) was last held on 04 November 2013 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 04 November 2013. Prakasam Milk Producer Company Limited's Corporate Identification Number is (CIN) U15122AP2013PTC085714 and its registration number is 85714. Its registered address is ONGOLE DAIRY, KURNOOL ROAD PRAKASAM DISTRICT, ONGOLE 523002, Andhra Pradesh INDIA. There are 15 directors/authorized representatives of Prakasam Milk Producer Company Limited. Current status of Prakasam Milk Producer Company Limited is - Active.

Corporate Identification Number Name RoC Registration Number Company Category Company Sub Category Class of Company Authorised Capital (in Rs.) Paid up capital (in Rs.)

U15122AP2013PTC085714 PRAKASAM MILK PRODUCER COMPANY LIMITED RoC-Hyderabad 85714 Company limited by shares Indian Non-Government Company Private Company 30,000,000 14,699,700

Number of Members(Applicable only in case 0 of company without Share Capital) Date of Incorporation Address 1 Address 2 City State Country Pin Whether listed or not Date of Last AGM Date of Balance sheet Company Status (for eFiling) 13 February 2013 ONGOLE DAIRY, KURNOOL ROAD PRAKASAM DISTRICT ONGOLE Andhra Pradesh INDIA 523002 Unlisted 04 November 2013 04 November 2013 Active

WHAT IS MILK? Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by the complete milking of one or more healthy milky animals, excluding that obtained within 15 days before or 5 days after calving or such periods as may be necessary to render the milk practically colostrums-free and containing the minimum prescribed percentages of milk fat and milk-solids-not-fat. In India, the term 'milk', when unqualified, refers to cow or buffalo milk, or a combination of the two.

CHEMICAL COMPOSITION OF MILK (%): Sl.No. 1 2 Species Cow Buffaloes Water 86.6 84.2 Fat 4.6 6.6 Protein 3.4 3.9 Lactose 4.9 5.2 Ash 0.7 0.8

DEPARTMENTS IN PDMPCL:
1. Milk Procurement and input section. 2. Purchase Department. 3. Production Department. 4. Administration Department. 5. Finance Department. 6. Marketing Department. 7. Vertianary Department.

PRODUCTION DEPARTMENT: Production department is the main department wherein the raw material is converted into finished into products. At PDMPCL production department is well planned & adequately equipped manufacturing set up where the entire necessary infrastructure is available. The quality of the product is also dependant on the production procedure. In PDMPCL the raw milk is processed to form the good quality of milk. During the processing the milk is differentiated depending on the contract of FAT & SNF (Solids Not Fat)

The different types of milk different in quality are TYPES OF MILK Full Cream Milk Toned Milk Standardized milk Full Cream Milk FAT 6% 3% 4.5% 6% SNF 9% 8.5% 8.5% 9%

OBJECTIVES OF THE PRODUCTION DEPARTMENT: 1. Maintain the standard quality of the product. 2. Keep the customer satisfaction by qualified products. 3. Cleanliness. FUNCTIONS OF PRODUCTION DEPARTMENT: 1. Chilling the milk. 2. Pasteurizations of milk. 3. Package & store the milk in the stores at 4C

FLOW CHART OF PRODUCTION PROCESS

COLLECTION OF MILK

CHILLING OF RAW MILK

CHILLED MILK STORAGE

PASTEURIZATION

STANDARDIZATION

PACKING STORAGE

QUALITY CONTROL
Quality control is an essential and most important department for any manufacturer. Todayevery organization has efficient quality control system.Quality control is depend upon only practical (Survey Analysis and Right Procedure).In D.U.S.S. Ltd. LUCKNOW at reception point of milk from different societies (ProducersVillagers) Milk is collected and basic test are carried out quickly after cleaning it is send for further processing. Finally after pasteurization three type of milk obtain that is Full creammilk. Toned Milk, Janta Milk.Milk procedure out through some stages---------------------1. ORGANO LEPTIC TEST It passes through three stages this is the first type of testing milk. Seeing Smell Testing 2. CLOT ON BOILING TEST After testing checking is done between good and pour milk. Formalin test Soda test Urea test Sugar test Caustic test These tests are based on c lot on boiling test 3. S.P.C. (Standard plate count) TEST In this type of testing not more than 25000 Bacterias should be present in one ml of milk. 4. CLR (Correct Lacto Meter Reading) Test In this type of testing is done to find out quantity of water in milk.11%, 135% should be is LATIC ACID in the milk. 5. M.B.R.T. (Methyl Blue Reduction Test) M.B.R.T. test is done for milk pasteurization. Heating temperature should be 72 80Degree centigrade. Chilled temperature should be 5 degree below 6. S.N.F. Test (Solid not fat) S.N.F. test is based on lactometer test.S.N.F.=CLR/R x .2 X fat %+.29 (this formula is used for Big lactometer)S.N.F.=CLR/4 x .2 x 5%+.50 (this formula is used for small lactometer

CONCLUSION
Finally I have prepared a report on PRAKASAM DISTRICT MILK PRODUCTION COMPANY LTD at ONGOLE. Here I spent my two days (Daily five hours) and had taken visit of wholeunit. I can conclude that the unit has all four departments and the superior-subordinatesrelationship can be observed. In this organization the best thing co ordination and co-operation among all departments which is very essential and makes the communicationeffective which I liked mostI think only these two secrets for the success of this organization. And Iam thinking that if these would remain as a same the day is not far away that this will become best dairy in Andhra Pradesh I am very thankful to all officers, workers, and asst. manager who gave me the information by spending their valuable time.