CHAPTER 1

INTRODUCTION

1.1 PROFILE OF THE COMPANY

PONALIT => PON Pondicherry LAIT Milk

The Pondicherry Co-operative Milk Producers Union had its origin as the Pondicherry co-
operative milk supply society during the year 1955. The supply society had 50 individuals
members on its rolls. The union was the first co-operative society was registered in Pondicherry.
It still maintains its prominence amongst the co-operative societies in Pondicherry and it is the
Apex co-operative society.The supply society was unable to extend any good deal of input
activities to the producing members to encourage the milk production and was unable to impress
upon the consumers also on the quality aspects. The society thought of instantaneous milk cooler
with a capacity of 2500 liters to preserve the surplus milk. The supply society extended cash
advance and feed supply on loan basis to members from going into the fold of private milk traders.

The co-operative dairy established through the National Dairy Development Board, was
commissioned on 12th April 1971 at a cost of Rs.23 .60 lakhs with financial assistance from the
Government of Pondicherry. Milk supply society had its prime objectives as serve to the urban
consumer with good quality milk. Recommendations contained in the master plan for dairy
development, the Pondicherry Co-operative Milk Supply Society was converted into the
Pondicherry Co-operative Milk Producers Union with 46 primary societies affiliated to it and the
management of the dairy. The union started /functioning with effect from 01.07.73 and primaries
with effect from 1.8.73.

The guidelines of the National Dairy Development Board, the Government of Pondicherry
requested the Indian Dairy Co-operation of Finance the dairy development project in the Union
Territory of Pondicherry under operation flood IInd. October 1979 the National Dairy
Development Board prepared a development plans and titles. Indian Dairy Corporation officials
visited Pondicherry between 28th and 31st January 1980, appraised the project and prepared an

1
outlay of Rs.l02.49 lakhs. Thus Pondicherry brought in the operation flood map by the launching
of operation flood IInd in 1982 by the Pondicherry Co-operative Milk Producer's Union.

The milk of the individual producer members was tested for its quality at the village society
itself and the payment basis of quality of the milk procured by the producers. The expansion of the
dairy plant to 30,000 liters capacity from the original 10,000 liters capacity under operation flood
on turnkey basis by the National Dairy Development Board. The extension work was undertaken
and completed during 1986.

To provide better nutrition to the cattle population of Pondicherry an urea molasses lick
plant of 10mt per day was approved as estimated cost of Rs.26.23 lakhs under operation flood III.
The work was taken up in October, 1988 and completed in April, 1990 with revised cost of
Rs.18.15 lakhs. It capacity if the dairy plant was expanded to 50,000 liter per day during 1995 -
96 with the support of the National Dairy Development Board.

1.2 ORIGIN AND GROWTH:

History tells us that PONLAIT came to existence as Puducherry milk supply society registered as
1st co-operative society in the Union Territory of Puducherry on 07.02.1955. Started in a tiny shed
its primary objective and focus was to supply milk to the urban consumers.
As time passed the supply has diversified its activity from consumer to producers and
concentrated in increasing the milk production by giving various assistance/ incentives to the
milk producing farmers.
The union started procuring milk from the village producers on quality basis from 1970
onwards. To keep pace with the milk production the milk union has also setup a diary plant
with 10,000 liters capacity for processing on 12.04.1971.
During the year 1973 the supply society was converted to co-operative milk producers union
with the objective of shifting its focus on the milk producing community and its welfare.
With the success of the Amul. The National Dairy Development Board has programmed to
replicate the Anand pattern collecting.
Ponlait has entered the MNEMONIC club conceived, implemented promoted and popularized
by the NDDB for the entire dairy co-operative of the nation with effect from 30.03.2002.

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OBJECTIVES OF ORGANISATION

The objective of the union shall be to carry out activities conductive to the economic
development of the milk producers by organizing effectively production, processing and
marketing of commodities.
Purchase, process, manufacture, distribute and market commodities of the members
and others without affecting the interest of the members.
Own or hold on lease of otherwise, movable or immovable properties and dispose of
the same.
Purchase and erect buildings, plants and machineries and or ancillary equipments.
Organizing new milk producer's co-operative societies.
Organize supervision of affiliated societies for the purpose fix. And collect the
supervision charges with the permission of the registration.
Undertake and encourage production of milk and growing the fodder and agricultural
products.
Own herd of cattle for breading Purposes.
Undertake or to assist in the marketing of the cattle.
Render technical, administrative or other necessary assistance to other milk scheme.
Insure immovable properties of the union as may be found necessary.
Undertake cattle insurance work and general insurance work related to the union and
members of the member societies on agency basis.
Arrange training of employees of the union and member.

1.3 ACTIVITIES OF DIFFERENT UNITS OF THE MILK UNION

A. MILK PROCUREMENT

Ponlait is operating in the Pondicherry Region with 98 affiliated functional Dairy Co-operative
Societies.There are 10,000 Cattle owners who become members in the Dairy Co-operative
Societies at villages and supplying milk to Ponlait. Milk Supplying members are paid fortnightly
in cash with remunerative milk price @ Rs.20.00 per liter for (4.2% & 8.3% SNF) w.e.f

3
16.02.2012. The primary responsibility of procurement and input section is to procure clean and
quality milk from village cattle owners and carryout milk production enhancement services. To
achieve this objective, the Procurement & Input wing is conducting various programmes like Clean
Milk Production and Quality milk Procurement at Dairy Co-operative Societies. Besides the main
activity, the milk-supplying members, milch animals are also provided with Cattle Feed, Green
Fodder and Artificial Insemination at subsidized rate. The total demand of milk both consumer
and school supply will be 1,00.000 ltrs per day of which 50% will be from Primaries and remaining
50% will be out sourced from Aavin, Tamilnadu & Karnataka Co-operative milk Marketing
Federation.

B. MILK PROCESSING

The present handling capacity of the Dairy plant is 50,000 Ltrs per day. However with prudent
technical manpower and Top managements support 1,00,000 to 1,25,000 Ltrs of milk is handled
per day. 2 varieties of milk namely Toned Milk & Cow Milk are produced as per the consumer
requirements. The daily consumer demand is met fully. Present demand is 95,000 to 1,00,000 Ltrs
per day. The Dairy is supplying Toned milk of 6400 ALPD to School children under Sri Rajiv
Gandhi School Children Breakfast scheme. Besides milk processing and grading, the Dairy is
equipped to produce 15 MTS of ghee and 5000 Kgs of Khoa (milk Peda) monthly. The Ponlait
Ghee and Khoa are much sought after products in the Pondicherry town. The Dairy is producing
1000-1500 bottles of Flavoured milk and 2500-3000 packets of Butter Milk every day and sells in
Pondicherry town. The Dairy is also producing Paneer, Ice Cream, Kulfi, choco bar, Ice candy,
Badam Mix and curd as per the requirement of the consumer as and when needed.

C. QUALITY ASSURANCE

Since the milk is a highly perishable commodity, proper care is taken to maintain quality of the
milk right from the point of production to the point of consumption. At the village level, the milk
poured by the individual member producers is tested at the primary society. The milk tested for
the quality at society level reaches the Dairy Plant. The raw milk is tested organoleptically at the
Dairy reception dock for its quality and then the individual society sample are tested for its fat

4
content and other microbial standards. Apart from this, the processed milk is sampled at every
point of storage during the process and proper care is taken to maintain quality standards.

Finally the different varieties of milk are graded and kept ready for packing to the consumers. The
pouched milk samples are randomly taken and tested for its shelf life after despatch to the
consumers. Presently the milk is despatched to the market at 5 degree centigrade in three varieties
viz Toned Milk 3.0% FAT 8.5% SNF, and Cow Milk 3.5% Fat 8.5% SNF (SNF- Solids Non Fat)
as on date. Day in and day out, maintaining the quality of milk receives the top priority.

D. MILK PRODUCTS

Ponlait producing 22 varities of milk By-Products, which includes Ghee, Ice Cream, Curd, etc.,
Ponlait selling Milk By-Products by its own brand name and also supplying Ice cream to Amul in
the name of Amul brand nearly 80 lakhs per month.

E. CATTLE FEED

Ponlait owns a small Cattle Feed Plant of 30 MT/day capacity in Thattanchavady Industrial Estate.
Compounded Cattle Feed is produced with cost effective ingredients and supplied to the members
on no profit basis. Ponlait is producing 50 Kgs of Feed out of the total cost of Rs.650/- per bag
w.e.f. 01.05.2012. The present monthly production and supply is 800 MTS.In addition Ponlait
Cattle Feed is supplied to neighboring Villupuram District Dairy also. The Cattle Feed produced
in the feed mixing plant is tested batch wise. The balanced compounded cattle feed produced in
the Ponlait Cattle Feed Plant is proved to be effective for animal health and quality milk
production.

F. ADMINISTRATION

The Ponlait Administration is vested with the committee of management comprising 12 elected
representatives from the Presidents of Dairy Co-operative Societies and a nominee from National
Dairy Development Board, Co-operative Department and Department of Animal Husbandry and
Managing Director of the Milk Union. Since the committee of management is dissolved, the

5
Administrator manned by a Deputy Registrar from the Co-operative Department is looking after
in lieu of the Board of Management with effect from 06.09.2002. As per the order of the High
Court, Chennai, an Advisory Board with the following three members has been constituted by
the RCS in order to guide the Administrator by making major policy decisions and other
administrative matters.

Registrar of Co-operative Societies - Chairman

State Director, NDDB, Bangalore - Member
Director, AHD, Pondicherry - Member
At present 785 employees in various cadres are working in the Union as follows,
235 : Regular Employees.
112 : Time scale Employees.
166 : Consolidated casuals.
272 : Casuals

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 CHAPTER 2

TECHNICAL COLLABORATION

2.1 WHO/GMP CERTIFICATIONS

Ponlait has been certified with WHO/GMP certification. Good Manufacturing Practices
(GMP, also referred to as 'cGMP' or 'current Good Manufacturing Practice') is the aspect of
quality assurance that ensures that medicinal products are consistently produced and controlled
to the quality standards appropriate to their intended use and as required by the product
specification.

GMP defines quality measures for both production and quality control and defines
general measures to ensure that processes necessary for production and testing are clearly
defined, validated, reviewed, and documented, and that the personnel, premises and materials
are suitable for the production of pharmaceuticals and biological including vaccines. GMP also
has legal components, covering responsibilities for distribution, contract manufacturing and
testing, and responses to product defects and complaints. Specific GMP requirements relevant
to classes of products such as sterile pharmaceuticals or biological medicinal products are
provided in a series of annexes to the general GMP requirements.

2.2 ISO 9001:2000 CERTIFIED

ISO 9001:2000 specifies requirements for a quality management system where an

organization

needs to demonstrate its ability to consistently provide product that meets customer and
applicable regulatory requirements, and
aims to enhance customer satisfaction through the effective application of the system,
including processes for continual improvement of the system and the assurance of
conformity to customer and applicable regulatory requirements.

All requirements of this International Standard are generic and are intended to be applicable
to all organizations, regardless of type, size and product provided. Where any requirement(s) of

7
this International Standard cannot be applied due to the nature of an organization and its product,
this can be considered for exclusion. Where exclusions are made, claims of conformity to this
International Standard are not acceptable unless these exclusions are limited to requirements
within clause 7, and such exclusions do not affect the organization's ability, or responsibility, to
provide product that meets customer and applicable regulatory requirements.

8
 CHAPTER 3

PRODUCTION FUNCTION

3.1 PROFILE OF THE PRODUCT

PONLAIT is producing three grades of milk .They are,

Tonned Milk
Standardized Milk
Premium Milk

The FAT and SNF value is different for each milk. The values are given below.

Standards of Each Milk:

MILK FAT SNF PRICE

TONNED MILK 3% 8.5%

STANDARDIZED MILK 4.5% 8.5%

PREMIUM MILK 5.0% 9.0%

Cream is added to increase the FAT content whereas to decrease the FAT content skim
milk is added. Skim milk is a milk which contain 0.1% of FAT.SNF is increased or boosted by
adding skimmed milk powder with the milk.

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3.2 PLANT LAYOUT

The milk processing plant shall have the following essential facilities.

i) Raw Milk Reception Dock (RMRD) - consisting of can conveyor, can washer,
weighing balance, dump tank etc.
ii) Processing Hall - cream separator, chiller, homogenizer, pasteuriser and other
related machinery are installed.
iii) Storage area- for milk storage tanks.
iv) Products manufacturing area-depends upon the type of products, quantity of milk
handled and the machinery to be installed.
v) Packing area-for packing of liquid milk and other products.
vi) Cold storage-for keeping the milk and milk products before sending to market.

3.3 PROCESSING OF MILKS:

The Dairy Co-operative society collects milk from their members. In the societies, the
society workers check the quality of the milk from individual member of considering the FAT and
SNF (Solid with Not Fat) content of the milk. The milk from each society is collected and sent to
the PONLAIT.PONLAIT receives the milk and perform certain tests to check the quality for
receiving and for further processing the milk.

STEPS TO PROCESSING OF MILK

Raw milk weighing by weighing machines.
Raw milk is put into large containers.
Raw milk are go chilling process by way of pipe chilling plant used for the purpose of
purify the milk and, milk not get any waste.
4 Chiller unit are side raw milk and other side-chilled water without mingle each other
carefully.
The boiling temperature of milk is 72-80 degree. So the powerful and harmful bacteria
are arrested.
The raw milk are maximum 5hrs are in good condition.
10
 Then the milk is tested by lab. There are different types of test is conducted. This is
conducted for the purpose of quality check, sourness, long life of the milk from each and every
society sampling milk was given for testing

TEST PROCESS:

ORIGINAL TEST:

The raw milk collected from the society has to undergo an original test by the quality
controller. It contains tow types of test. They are

(1)Smell:

The Quality of the raw milk is first checked by smelling it.

(2)Taste:

If the above test is not satisfied the raw milk is tasted to find its sourness.

CLOT ON BOILING TEST (COB):

Clot on Boiling Test is carried only when the original test is not satisfied. Clot on Boiling
test means a sample of milk is tank in a test tube and heated to find its sourness. This test is
performed is a rare case.

METHYLENE BLUE REDUCTION TEST (MBR)

This test is for how long the milk can be able to in good conditions.

Sample of milk from each society:

After performing the above test and getting satisfaction the raw milk is procured. A sample
of milk from each society is taken in a small bottle for doing a laboratory test to find the content
of FAT and SNF (Solid with Not Fat) for pricing of milk.

Weightiest of Raw milk from each society:

After taking the sample of raw milk of each society, it is weighed in a Electronic weight
machine and it is filtered and sent to the Dump tank.

The following are the some of the test are done in lab.

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 Fat
SNF
Acidity
Phosphate test
Microbiological test

STORAGE MILK
The milk is stored by storage tank. There are 10 storage tanks in the storage room.
10,000lit plant capacity take are used. Boiled milk is going to the storage tank from that it is going
to the packing process.

The packed milk is stored in 5 degree centigrade.

3.4 QUALITY CONTROL

Milk quality control is the use of approved tests to ensure the application of approved practices,
standards and regulations concerning the milk and milk products. The tests are designed to ensure
that milk products meet accepted standards for chemical composition and purity as well as levels
of different micro-organisms. There must be good reasons why we have to have a quality control
system for the dairy industry.

3.5 QUALITY ASSURANCE

Since the milk is a highly perishable commodity, proper care is taken to maintain quality of the
milk right from the point of production to the point of consumption. At the village level, the milk
poured by the individual member producers is tested at the primary society. The milk tested for
the quality at society level reaches the Dairy Plant. The raw milk is tested organo leptically at the
Dairy reception dock for its quality and then the individual society sample are tested for its fat
content and other microbial standards. Apart from this, the processed milk is sampled at every
point of storage during the process and proper care is taken to maintain quality standards.

Finally the different varieties of milk are graded and kept ready for packing to the consumers. The
pouched milk samples are randomly taken and tested for its shelf life after despatch to the
consumers. Presently the milk is dispatched to the market at 5 degree centigrade in three varieties

12
viz Toned Milk 3.0% FAT 8.5% SNF, and Cow Milk 3.5% Fat 8.5% SNF (SNF- Solids Non Fat)
as on date. Day in and day out, maintaining the quality of milk receives the top priority.

3.6 PLACEMENT OF PROCUREMENT

The raw milk which is collected by societies from the villagers are stored in BMC and then carroed
by trucks to PONLAIT. The milk are stored in the chilling room and it is processed by the milk
processing plant.

3.7 NATURE OF COMPANY

Supervision for every section of milk processing is performed. The milk which are stored in BMC
in the societies are also checked with respective to hygiene and quality. The demand for each day
is calculated and then the milk is packets are produced. The accounting happens on daily basis and
after collecting all the details the monthly accounts are performed.

13
 CHAPTER 4
HR FUNCTIONS

4.1 ORGANIZATIONAL FUNCTIONS

The organizational functions of the PONLAIT starts with Administrative officer followed by
Managing director and a personal assistant and the organization functions starts with divisions
of general manager for both head office and marketing office . The two divisions of GM deals
with dairy, maintenance and store department. The managers are function with related to milk
and milk products. Followed by general managers assistant manager and deputy manager who
are then followed the senior assistant, operator and helper.

Sr.
Name of the Post Duties & Responsibilities
No.
1. General Manager Head of Department

2. Dy.General Responsible for the matters pertaining to

Manager(Admn.) Establishment of DMS and General
Administration.

3. Dy.General To assist General Manager in all

Manager(Technical) technical matters relating to DMS.

4. Chief Accounts Officer Responsible for all the accounts matter

of the DMS. Financial Adviser to GM.

5. Sr. Dairy Engineer Responsible for maintenance & repairs

of Dairy Plants installed at Central Dairy
& its ancillary milk collection & chilling
centers of DMS.

6. Manager(Processing) Head of Milk Processing/Products

Responsible for processing of milk &
manufacture of milk products at Central
Dairy and also receipt of raw milk.

7. Manager(Quality Responsible for the checking of quality

Control Lab.) of milk & milk products being produced
by the DMS.

8. Manager(Distribution) Responsible for distribution of milk and

milk products through milk depots, All

14
 Day Milk Stalls and Private Agencies
set up for the purpose and to manage the
entire distribution working.

9. Dy.Manager(Stores) To assist Manager (Stores ) in

purchasing & Accounting of all types of
stores.

10. Dy. Manager (Distt.) To assist the Manager(Distribution) and

ensure proper distribution of milk and
milk products.

11. Dy.Manager(Quality To assist the Manager (QCL) in day to

Control) day working of Quality Control
Laboratory.

12. Dairy Engineer Responsible for maintenance and repairs

of dairy plants installed at Central Dairy
and its ancillary milk collection &
chilling centers and also to assist the
Senior Dairy Engineer in the
performance of his duties.

13. Dairy Chemist Responsible for the work of checking of

chemical qualities of milk and milk
products of the DMS.

14. Administrative Officer To assist the DGM(A)/GM in day to day

administration and general matters
pertaining to the DMS
staff. Responsible for the work of
Establishment sections.

15. Accounts Officer To look after the accounts work of the

scheme under the supervision of
FA&CAO.

16. Internal Audit Officer To assist the FA&CAO with regard to

Audit of the DMS Accounts, to have a
check on the entire purchase of stores
issued and advise to the Administration
in financial implications.

15
GENERAL MANAGER

Overall responsibility for management of Milk Plant operations including Quality

Management System and HACCP requirements.
Defining the Milk Plants quality Policy and Quality Objectives.
Presiding over the Management Review meetings.
Defining and monitoring the responsibilities, authorities and inter-relationships of all
personnel who manage, perform and verify activities affecting quality.
Overview of General Administration and finance.
Goal setting for Procurement, Marketing and Production and monitoring performance.
Management of Men, Machine, Material, Methods and Resources for optimum
utilization and to ensure their availability for satisfactory quality Management System.
Giving feedback to the management bodies such as Board of Directors and Milkfed for
implementing policies decided by such bodies.
Interact and interface with both internal and external environment to facilitate
implementation of growth plans apart from consolidation of on going operations.

PRODUCTION INCHARGE

Over all responsible for all the functions/sections of Production processes relating to
milk and milk products. B. Responsible for Production planning, achieving quality
parameters as well as meeting production targets and maintaining cordial relations with
the work force.
Planning, scheduling, monitoring and managing production processes to maintain
consistent quality of product, productivity levels, quality standards and reduction of cost
of production through productivity enhancement.
Keeping track of management for information on plant output, labour turnover,
production and quality problems.
Controlling resources both men and material and reducing wastage and direct them for
proper use.
Ensuring timely corrective action on non-conformities appearing in the system and
instituting preventive action to eliminate recurrence of non-conformities.
Responsible for monitoring performance of all Deputy Manager (Prod) and other
subordinate staff maintaining consistency in production output.

16
 Keep track of production levels in each department and inventory level of individual
sections.
Controlling, guiding and training workers for better performance.
To implement pest and rodent control Programme inside plant premises in order to make
premises pest and rodent free.
To ensure all the eligible employees entitled for uniform should wear neat and clean
prescribed uniform.
To ensure that the milk and milk products satisfy the requirements of FSSAI acts, rules
and regulations made under all stages of processing and production.
To ensure maintenance, authentication and up gradation of all required records
pertaining to production section.
To ensure personnel hygiene of their employees and general housekeeping of production
section.
To ensure timely execution of all agreements for all contracts and compliance of all
clauses of contracts related to production section.
To ensure applications of FIFO in all stages of production.
To perform any other responsibility which may be given by the competent authority
from time to time.

TECHNICAL SUPPORT

Responsible for identifying all machines requiring maintenance, preparing and

execution of preventive maintenance schedule and executing maintenance throughout
the plant.
Monitoring, controlling, maintenance of machinery and equipment to ensure all time
availability of serviceable machines and equipment for producing quality products.
To Ensure proper supply of potable water and soft water wherever required in the plant.
Ensuring the availability of appropriate quality approved spares and timely demand of
relevant spare material for timely execution of maintenance and servicing.
Coordinate with State Electricity Board for electricity supplies and maintaining proper
supply of electricity in the plant from PSPCL as well as DG set.
To monitor pollution Control activities in milk plant and all milk chilling Centers,
ensuring conformity to statutory requirements and their implementations. Also
responsible for necessary interactions with statutory authorities.
17
 To identify and organize periodic calibration and inspection of measuring and test
equipment in the Plant coming under his preview.
To implement pest and rodent control programme inside engineering section in order to
make premises pest and rodent free.
To ensure all the eligible employees entitled for uniform should wear neat and clean
prescribed uniform.
To ensure that the milk and milk products satisfy the requirements of FSSAI acts, rules
and regulations made at under all stages of milk Procurement, milk processing and
distribution. All necessary equipments and machinery should be provided to end users
as per the requirements of FSSAI.
To ensure maintenance, authentication and up gradation of all required records
pertaining to engineering section.
To ensure personnel hygiene of their employees and general housekeeping of
engineering section.
To ensure timely execution of all agreements for all contracts and compliance of all
clauses of contracts related to engineering section.
To ensure applications of FIFO in all stages of Engeering section.
To ensure timely up gradation of all machinery and equipments for effective utilization
of energy conservation throughout milk plant and milk chilling centers.
To perform any other responsibility which may be given by the competent authority
from time to time.

ACCOUNTANT

Overall management of accounts, management and monitoring of finance for the

organization.
Interaction with banks and other financial institutions for day-to-day banking/cash
operation.
Financial audit and compliance of statutory deductions such as TDS, income Tax, EPF,
ESI, VAT, Service tax etc.
Providing finance and data maintenance.
Proper costing of all products for efficient production planning and optimum utilization
of resources.
To arrange disbursement and receive payments from MPCS / CDF and other stake
18
 holders.
To ensure compliance of audit observation internal as well as external.
To ensure monthly physical verification of production section, quarterly physical
verifications of stores and MCC and annual physical verification of engineering and
MCCs.
To ensure timely receipt of amount recoverable from employees and other parties.
To ensure of Maintenance of vouchers/ balance sheet and other documents for business
of union.
Monitor all day to day transactions having financial implications.
To ensure up-to-date maintenance of accounts records.
To ensure all the eligible employees entitled for uniform should wear neat and clean
prescribed uniform.
To ensure maintenance, authentication and up gradation of all require records pertaining
to accounts department.
To ensure personnel hygiene of their employees and general housekeeping of accounts
department.
To ensure timely execution of all agreements for all contracts compliance of all clauses
of contracts related to accounts department.
To ensure application of FIFO in all stages in accounts department.

19
4.2 RECRUITMENT PROCEDURE

Labours are recruited by having personal interview for the labours. Persons who are
attending interviews are interviewed by the HR manager.Persons recruited for lab testing are
expected to hold degrees in microbiology, For other posts any degree holders can apply.

4.3TRAINING AND DEVELOPMENT

After the person has been recruited for the particular department 3 months of induction
is given for them. They should also pay fees for basic training programme. They are fully
equipped with the knowledge of working for the particular department with the 3 months
induction program.

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4.4 WAGE PLANS

REGULAR EMPLOYEES 16000 Rs

CONSOLIDATED EMPLOYEES 8500 Rs

CASUAL EMPLOYEES Rs.130/- per day

4.5 WORKING CONDITION

Since the company is certified with Good Manufacturing process (GMP), it is necessary
for the workers to wear a mask, and provided with covers and shoes. Without these stuffs, the
workers are not allowed to enter inside the production departments. These were strictly followed
as per the instructions. Strikes and Political interference is also seen in this organization.

4.6 BENEFITS

Issue of Milk Card to the Employee @ 1 Litre / day.

Issue of Ghee @ KG / Month.

Issue of Uniform to the Employee along with stitching charge @ 2 Sets every Year.

Issue of Rain coats to the Employee @ 1 Set every 3 Years.

Issue of one pair of Chapel every year.

21
 CHAPTER 5

SALES FUNCTIONS

5.1 REGULATORY INFORMATION OF PACKAGING AND SHIPMENT

Packaging means placing a commodity into a protective wrapper or container for transport
and storage or it can also be defined as a tool that protects and contains goods with the aim of
minimizing the environmental impact of our consumption.

The packaging concept is determined by the demand of both the consumer and the product.
New technological development, environmental awareness and changes in the consumer market
force the packaging technologists to consider an increasing number of factors when designing a
package. Packaging materials provide a sort of inert barrier that prevent the interaction of food
products with the external environment. The package or container should be adequately large to
hold the product. It should have proper constructional features so as not to allow leakage and
spillage. It should have enough strength to withstand handling, transportation and storage hazards.
Finally it should be as compatible as possible with the product. The package should safeguard the
product against contamination, or loss and damage or degradation due to microbial action,
exposure to heat, light, moisture, and oxygen, accidental spillage, evaporation, pilferage etc. The
shape of the package should be favourable to dispensation ad reclosure and to its disposal or re
use. The packaging material should lend itself to operation in whatever machines are available; be
economical; be printable on the outer surface; and the last but not the least, it should have sales
appeal.

Ultra pasteurization enables dairy processors to produce dairy products with an extended shelf
life similar to that obtained with UHT processes. Pasteurization involves heating milk in properly
designed and operated equipment for a definite time and to a specific temperature and thereafter
cooling it immediately. Pasteurization is applied to milk to destroy all vegetative and pathogenic
microorganisms and nearly all other bacteria without significantly altering the fl avor or
composition of the product. It also kills all the yeasts and molds that might be present in the
product. Pasteurization can be achieved by either a batch or continuous process. Under the fi rst,
milk is heated to 63C for 30 min in a double-jacketed vat. The process is called low-temperature

22
long-time (LTLT) pasteurization. This method is usually applied to small quantities of milk (100
L) and requires low-cost equipment. Alternatively, high-temperature short-time (HTST)
pasteurization refers to heating milk in a continuous flow at a temperature of at least 72C for at
least 15 sec, followed by immediate cooling to 4C. The entire process is usually automated and
is suitable for large-scale operations handling 5000 L or higher. Under these timetemperature
heating conditions, Mycobacterium tuberculosis and Coxiella burnetti, the most heat-resistant non-
spore-forming organisms found in milk, are destroyed. Thus, these organisms are used as index
microorganisms in order to assure complete safety of milk.

5.2 COST AND PRICING

Milk collected in cans and bulk-collected milk are mixed in the storage tanks 8. At this stage, the
next step is to determine the cost price of one litre of milk.

The cost price of stored milk will be the sum of the following costs:

Total paid to milk producers

Refrigeration costs
Collection costs
Sub-section costs:
tank reception;
can reception;
refrigeration;
storage of chilled milk.

The sum of these costs divided by the number of litres of stored milk will give the average cost of
one litre of milk. This average per litre cost should be indicated together with milk quality, which
may be defined, for example in terms of:

Milk fat content per litre

Total milk solids per litre

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Quantitative control is also necessary at this point in processing procedures; i.e. amounts paid to
producers and amounts actually stored need to be compared. For bulk collection, the quantities of
milk paid to the producer will be worked out by the milk collector at pick-up. The volume of milk
will be indicated by a graduated scale on the side of the milk tank

5.3 NATURE OF SALES

Sales of milk is done with two types cash sales and advance sales. The cash is paid to the office
after the milk and milk products are taken off to sale by the agencies which are registered. In case
of advance sales the payment is done in advance and the sales of milk is done.

5.4 ORGANIZATION OF MARKETING DEPARTMENT

MANAGING DIRECTOR

PA TO MD
(STENO. SUPDT.)

MANAGER MANAGER MANAGER

SCHOOL
MKTG. - MKTG - QUAITY CATTLE FEED
MILK
MILK PRODUCT CONTROL
SUPPLY

ASST. ASST. ASST. QUALITY VET.

MANAGER CONTROL OFFICER
MANAGER MANAGER

JUNIOR
JUNIOR LAB CLERK
SUPDT. SUPDT.
CLERK TECHNICIAL

SENIOR SENIOR DRIVER HELPER

HELPER LAB HELPER
CLERK CLERK

JUNIOR JUNIOR
CLERK CLERK

DRIVER HELPER DRIVER HELPER

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 CHAPTER 6

FINANCE FUNCTIONS

6.1 OPERATIONAL REVIEWS

Gross revenues increased to Rs.379401437.90, a growth against Rs. 112868786.75 in

the previous year. Profit before depreciation and taxation was Rs. 183340632.79 against a loss
of Rs. 49348705.93 in the previous year. After providing for depreciation and taxation of Rs.
183340632.79 respectively, the net profit of the Company for the year under review was placed
at Rs. 183340632.79 as against a loss of Rs. 49348705.93 previous year. Due to tough market
conditions, increase in cost of inputs and reduction in margins, the percentage increase in profit
has not been proportionate to the increase in turnover. However, the profit after tax has
increased.

6.2 SHARE CAPITAL

During the year under consideration, the paid up capital increased from Rs.9095000.00 to
Rs.9181000.00. The net difference between total assets and the total liabilities is of negative
value of about Rs.2766767.68

6.3 FINANCIAL POSITION

The net profit of the company increase. So it shows the performance of the company for the year
2014 and 2015 is attain a normal position. But in the year 2016 and 2017,the company rises the
Net Profit which shows there is a good improvement in sales.

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 CHAPTER 7

CONCLUSION

PONLAIT, a firm that has been able to prove its strength in the dairy industry. The
company has been to cover all types of customer in Puducherry. Now, the products of PONLAIT
have become a household name. From this study the technical collaboration, Human resource
functions, Production functions and Marketing sales function are also studied. They also use
formal customer satisfaction measurement programs that provide routine opportunities for their
customers to tell them what they like or more importantly, what they dont like about dealing with
PONLAIT products. If possible, based on all the various factors, they can decrease the price of
certain ponlait milk products to increase their sales and fulfills the customer perception.

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