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Project title: Understanding mother dairy SAFAL from farm to fork and current challenges of the market.

Organization: Mother dairy fruit & vegetable unit ltd., Mangolpuri, New Delhi. Objective of the study: The objective of the study undertaken in the organization is to study
the existing structure and the functioning model of the organization. To understand the organization it is very necessary to have a deep understanding of the different activities and the functions of the organization. The study is focused to understand the mother dairy SAFAL from procurement of fruits and vegetables to its marketing through its large web of marketing channels. As mother dairy has been about a 25 years young organization and is continuously excelling towards achieving new heights by introducing a variety of products to its large base of increasing loyal customers. As with its operation launched in 1986 mother dairy was the market player in the market of organized sector of fruit and vegetables in India and continued to be the market leader but with the due san of time the several national and international corporate houses have observed the huge potential of the market and have invaded in this sector seeking a huge opportunity for them. At present there are several market players who are giving a tough competition before mother dairy and came up with a completely new concept of making fruit and vegetable retailing as part of their retail store which deals with hundred of various other items present in the store. With the emergence of these new formats mother dairy found itself in a tough competition which it had never tasted before. The competition is not only from the organized sector but the real threat is from the unorganized sector i.e. the local vendor and the mandis, which are not only providing the fruit and vegetables at their door steps or with easy accessibility but in a competitive price as compared to mother dairy and their presence is quite expanding with new strategy so as the competition to mother dairy. With the growing competition the new challenges are not only from outside but are also internal. The organization is although accelerating towards increasing its market share and the constant increasing sales figure do prove this. The organization has although achieved the status of being A million dollar company but has stick with a stagnant growth rate which is a matter of great concern for the company. The study is also focused to understand and find out the gap in the whole supply chain. To understand it better the study is focused to the problems related to:a. Organizational end:- In the organizational end the study will cover all the different aspects of the operation of mother dairy mainly focused on four major categories i.e. i. Procurement ii. Logistics iii. Pack house operations iv. Marketing

b. Booth keepers end: - To understand the marketing structure and the current challenges it is important to understand the functioning of the booths and the view of the booth owners about the current marketing strategy of the organization. c. Customers end: - The customer is the reason of survival of any organization. To understand the real market goodwill of the company it is really important to know the view of the customers. So in the study I will try to understand the organization at customers end i.e. what they actually think about the organization and according to them where the problem lays. The study is not only limited to problem identification but will also provide important insights in analyzing the problem and suggest possible reasons behind them. The study will also help to find out the possible solution to these problems.

The methodology used in the study is both based on field study as well as collecting data from the other possible other sources. The methodology adopted for collection of data is:a. Customer survey in a selected area with selected no. of customers. b. Visit to the framers/growers association as well as to the farmers by going to the field. c. To know about the different operational aspects of the organization constant visit to the CSG plant and focused discussion with the present workers have been done. d. To have the knowledge about the management and the different departments a constant visit and discussion with senior staffs and managers have been done. As the methodology mainly adopted in the study to gather the data and to reach out all the possible information is primarily through field visits and ground exposure. The study undertaken is not like other studies that are commonly carried over, where the data and the information are available at a click of computer. When we are doing a study of agri. based sector it is very necessary to have the knowledge acquired from the field visits more than from the available documents. To understand the understanding of the customers about the organization which deals with the consumable perishable products which are purchased by the customer daily, which is a very important part of the customers day to day, life. The only way to understand the customers point of view about the organization is to have face to face discussion and acquiring information through a well structured questionnaire. To analyze the gathered data and several other information, discussion with the senior officials has also been productive.

The project is focused on understanding the organization mother dairy fruit and vegetable unit and to understand the operations of the organization trading with perishable products and the challenges involved with that. The study is focused on the deep insights of the operations starting from the process of procurement to marketing of the goods through the SAFAL outlets. This project is the part of our training segments that was needed to be completed for the partial fulfillment of the masters of business administration programme in rural management. The tenure of approx two months of the project helped me to develop a proper understanding about an agribusiness project. The immense support from my faculty guide Mr. Tapas Kumar Mandal and the other officials including my faculty guide Mr. Neeraj S. Sharma who helped me to have a better understanding about the organization which have never possible without their support. As the title of the project i.e. understanding mother dairy from farm to fork and the current challenges of the market depicts that in the study i have laid focus on the every aspect of its operation starting right from procurement of fruit and vegetables to selling of them to the customers. As starting with the procurement I have shared my careful observation on the whole process of the procurement, the structure of the procurement cycle with its two tier procurement structure i.e. both from farmers/growers association as well from the Azadpur Mandi. I have also shared my learning of my visit to farmers/growers association and the facts that came out of the meetings and structured interview based on selected questionnaire. The individual discussion with the farmers as well with the staffs at the procurement centre helped to understand the add value to the report. To understand the other tier of procurement i.e. procurement from the Azadpur Mandi, my visit to Mandi will also helped me to came out with a better understanding of the procurement process and the technical aspects related to it especially about the organization which trades with perishable products like fruit and vegetables. Moving ahead with the report I have also discussed about the logistics, which is always a integral part of any goods trading organization. In the discussion about logistics I have laid emphasis on describing the whole structure of logistics management, starting right from hiring the vehicles by inviting public tender to daily supply of products to the outlets through the logistics. After the discussion on logistic management, I have illustrated the whole structure and the process carried out in the CDF (Central distribution facility) plant which is the pack house for the fruit and vegetable which reach here throughout the country from different procurement centers. It is really very knowledgeable to understand the different technical aspects related to the operation carried out in a pack house. The marketing of any product is the most crucial part of the whole business. So I have tried to share my understanding that I perceived during the training period about the marketing of the products. The description about the pricing mechanism to keen observation of a SAFAL booth has ensured a better understanding about the marketing of the products. The survey of sample

size of 100 customers with a structured questionnaire and the interview of the booth owners bring several untouched aspects of mother dairy SAFAL which would have been never possible without it. The survey of the customers and discussion with the booth keepers helped me to find out the problems that exist in the process and which can also help the organization to find out the possible solution. At last the finding that I came to acquire has been also discussed in the report and the possible recommendations that can be taken into consideration to make the extent of the problem.

The study focused to meet its key objectives came out with several deep observations of the various activities involved with the operations. The findings came out of the field work of visiting farmers/growers association as well as the customer survey done based on a structured questionnaire raised several questions on the current supply chain structure and the problem related to the various aspects of the operation.

i. ii. iii. iv. v. vi. vii. viii.

The procurement is limited to few numbers of large farmers. There is very less inclusion of small farmers. The primary sorting and quality check lacks in procurement from farmers association. The selling rate of the fruit & vegetables is not known to the farmers in that same day. The logistics are not always on time. There is usually irregularity in procurement from the farmers association. The untimely demand or sudden demand makes the consignment reach late to the CSG plant at Mangolpuri. Meetings are not done with the farmers by the mother dairy officials. No agriculture input is provided to the farmers. The daily procurement mechanism and negotiation on procurement of fruit and vegetables at Azadpur Mandi , makes the process more lengthy.

Problems in Logistics i. ii. iii.

The logistics is not provided on time to the procurement centre sometimes. The number of trucks and other vehicles are needed to be increased. Many of the trucks in logistics are old and are not in good condition.

Problems in Marketing i. ii. iii. iv. v. vi. vii.

The customers lack awareness of benefit of purchasing SAFAL products over others. The location of some of SAFAL booths near the local mandi make the sale of the booth suffers. The prices of the products are high as compared to local mandis . The fruit and vegetables lack freshness and are not in good condition. The environment of the booths is not as par other MRFs. A large volume of fruit and vegetable get rotten every day. The booth keepers always complain about the supply of bad quality of supply.


i. ii.

The farmers association should procure more from small farmers. The fruit and vegetables procured at the farmers association must go though primary sorting before procurement.

iii. iv.

The logistics support should be on time. The officials from mother dairy should at least do meeting with farmers and should share their grievances.


Mother dairy should hire C&F agents to make the supply of the goods better.


The organization should improve the price determination mechanism. So that there would be better coordination between the procurement and marketing department.

vii. viii.

The old booths are needed to be redefined, so that they can perform well. More and effective promotional campaigns should be done to increase customers awareness on benefits of safal products.


Mother dairy should come up with more innovating concepts like home delivery of fruits and vegetables.


Proper mechanism should be developed with coordination of all the departments to decrease the loss of fruit and vegetable because of getting rotten.