A report on an industrial visit to

MOTHER DAIRY
-GANDHINAGAR

SUBMITED BY

:-

TEJAS I. MANGLANI FY BBA A ROLL NO. 61

SUBMITED TO

:-

SHRI CHIMANBHAI PATEL INSTITUTE OF BUSINESS ADMINISTRATION

YEAR 2008-09

PREFACE
Todays age is an age of management. It is the backbone of any organization, management is the critical factor. A which determines the success or failure of the business unit. Success in management depends on through understanding the principals of management. The sell success of management dies in applying professional management in all management activities. The B.B.A. degree course has its own distinguished & unique salidauty like other professional courses. One of its basic requirements during the terms for the student of B.B.A. is to undertake a visit to any industry to take such training. It is an important part of syllabus and study. The objective behind this type of practical training at first year is to develop among students feeling of industrial environment & consciousness of business partners. Students of B.B.A. must be well informed by industrial activity because its a university criteria. I am also B.B.A. student so, I had an opportunity to visit industry. In our programme, we had visited a dairy industry namely MOTHER DAIRY at Gandhinagar. We were welcomed by them & given us necessary information about Mother Dairy. I have prepared this report, which contains all the details of each department. I have studies in detailed the various process & operations taking place in this unit general information about is also included.

Acknowledgement
First of all I am very thankful to God for giving me this opportunity to visit MOTHER DAIRY and I believe that anything that happens is only by God. I am also thankful to following persons.

Co-ordinator of institute: - Prof. Seema Hariramani to arrange this visit. Prof. in charge of our visit: - Prof. G. R. Arora to guide and being very helpful on visit with us. Employees of the company & specially MR. A. K. Das and MS. Dimple Patel to provide us such important things & information about their firm (industry) .

I am also very thankful to my parents for giving me permission and allow me took admission in B.B.A. faculty and allow me to go for visit.

Index

INTRODUCTION
DIAL-A-MARKET . TO INDIA BEGINS WITH A MILK STRIKE The first Amul co-operative was the result of a meeting of farmers in Samarkha (Kaira district, Gujarat) on January 4, 1946, called by Shri Morarji Desai under advice from Sardar Vallabhabhai Patel, to fight rapacious milk contractors. Decision: Milk producers' unions in villages, federated into a district union, should alone handle the sale of milk from Kaira to the government run Bombay Milk Scheme. The government, British then, resisted the move. The farmers called a milk strike. After fifteen days the government capitulated. The Amul people confounded the scoffers by processing a variety of high-grade dairy products, several of them for the first time from buffalo milk, and marketing them nationally against tough competition. 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. As he expands his overseas operations to India many profitable options await him. He may transfer technology, sign joint ventures or use India as a sourcing center for regional

exports. The liberalization of the Indian economy beckons to MNC's and foreign investors alike. In this 21st Century, the Indian dairy industry has set its goal to better manage its national resources for enhancing milk production and upgrading milk processing through newer technologies. Multinational dairy giants can carve a niche for themselves in this challenging task a win-win situation that can be won! Dairy industry in India has come a long way from dependence to selfreliance as the total amount of milk produced more than tripled from 23 million tones back in 1973 to 81 million tones in 2000. Interestingly, it's the single largest contributor to India's GDP and involves as many as 80 million small farming households. The social impact of developing the dairy industry has thus been profound. With the opening up of the Indian market to an influx of foreign goods, much concern has been expressed over the state of the Indian dairy industry. Indian milk farmers are paid on the basis of the value of fat in the milk. In the last one year, due to lower realisation of ghee prices, there has been approximately 15 per cent erosion in the milk value realized by the farmers. A further drastic decrease in the milk fat price would be enough for the farmer to exit the dairy industry. If the undervalued imports are not checked, then all the gains achieved by Operation Flood may be wiped out.

INDIAS MILK PRODUCT MIX NAME OF VARITY {1}FLUID MILK {2}GHEE {3}BUTTER {4}CURD {5}KHOA {PARTIALLY DEHYDRATED CONDENSED MILK} {6}MILK POWDER INCLUDING IMF {7}PANEER & CHANNA{COTTAGE CHEES} {8}OTHERS, INCLUDING CREAM & ICE-CREAM 1.00% TOTAL 100% 3.50% 2.00% % OF USED MILK FOR PRODUCT 46.00% 27.50% 6.50% 7.00% 6.50%

India has the world's cheapest milk but unfortunately costliest of milk products. It may be due to cost diseconomies, process inefficiencies and poor yield. In post-WTO regime cheap foodstuff need not necessarily mean poor quality. It could be a very high quality product from the developed countries, available at low prices due to lower tax barriers. I think we have already started to feel the heat of such market changes with multinationals and domestic majors like Amul improving their product mix and package.

Being a large country with small milk producers even a slight signal of a shortfall or surplus in production tends to influence its interests. While developed countries may have evolved better institutional mechanisms to protect the interests of farmers and processor, this is not the case with India. Indian milk production, however, in contrast to other milk producing countries, is characterized by lakhs (millions) of small and marginal farmers including landless milk producers for whom it is not only a business but also the main source of earning. We can successfully meet the emerging challenges and harness the new opportunities if we ensure widespread adoption of the latest available technologies for processing, packaging and marketing of milk and milk products, organize milk producers and professionally manage their organizations. I feel that there should be level playing games for all the countries under WTO rules. INDIA HAS EMERGED AS THE BIGGETS PRODUCER OF MILK WITH AN OUTPUT OF 81 MILLION TONES IN 2000-01, OUTPACING 72 MILLION TONES PRODUCED IN THE UNITED STATES.

ABOUT MOTHER DAIRY GANDHINAGAR

Mother dairy, owned by Gujarat co-operative Milk Marketing Federation Limited (GCMMF) a state level apex co-operative organization of 1.9 million farmers of Gujarat, was commissioned in September 19, 1994 and establish under operation flood III with a sole objective of receiving each and every drop of milk from its member unions dairies. The plant was set up by L&T on turn key basis and supported by a consortium of world renowned dairy equipment and services supplied such as APV-Denmark, LT NIRO Denmark, NUCON-New Zealand, PrepacFrance and Westphalia-Germany. The total investment made into Mother Dairy is to the tune of Rs. 150 crores including recently set up Ice Cream and Long-Life milk facilities. The dairy operates in shifts round the clock and managed by 250 young professionals. It has the ownership of 23 lacks milk producers of Gujarat.

Mother dairy general information Name of administration : Address :MOTHER DAIRY - GANDHINAGAR MOTHER DAIRY, BHAT VILLEGE, GANDHINAGAR HIGHWAY, GANDHINAGAR. Head office :AMUL, ANAND, GUJARAT. Admin. Type :CO-OPERATIVE Marginal detail Chairman M. D. General Manager Auditors ::::DR. VERGEES KUMAR, GCMMF MR. M B VYAS MR. D R CHITLE MR. SURENDRA PATIL MR. ASHISH PATEL MR. V S BHARANAGA Bankers :S.B.I, DENA BANK, U.T.I, UNION BANK

Apex decision making body: -

GSMMF

Objectives:

 To meet the requirement of fresh & quality milk of customers of Ahmedabad & Saurashtra region. To handle the surplus milk of all members union of GCMMF Ltd. To cater the requirement of milk and milk products at reasonable rate. To safeguard the interest of the farmers and prevent their exploitation by offering remuneration prices. To provide employment to the people of rural areas. Mission: We are in the business of manufacturing and marketing of food and dairy products to serve the best interest of milk producers. We are committed to satisfy our customer by meeting their market milk requirement by optimum utilization of available recourses and minimizing the losses. We will achieve our above goal through using frontline technology and all quality tools with our dedicated and highly motivated team by providing them best working environment. MOTHER DAIRY GANDHINAGAR

ENERGY POLICY At mother dairy, they are committed to optimally utilize various forms of Energy in a cost-effective manner to affect Conservation of Energy. To accomplish this, they are planning to: Monitor closely the consumption of Energy through an effective Total Energy Management System. Benchmark continuously our performance against the best in the world. Adopt Latest and Eco-friendly Technologies to minimize the waste and protect environment without compromising on product quality. Make Energy Conservation a mass movement with the involvement of all Employees bycreating awareness and training them. Promote Reuse and Recycle of possible energy resources. Carry out regular Internal and External audits to identify areas for improvement. Enrich our experience on energy conservation by exchange of ideas with other industries/agencies.

PRODUCTION
Indias modern dairy sector has expanded rapidly. From an insignificant 200,000 liters per day (lpd) of milk being processed in 1951, the organized sector is presently handling some 20 million lpd in over 400 dairy plants.

Since the country is not faced with milk shortage, innovative use of technology and proper resource management can help the industry to achieve export competitiveness in terms of price and yield and quality. Plant capacity for production Name of the plant Milk processing Pouch packing Milk powder plant(old) Milk powder plant(new) Ghee Ice-cream Long life milk (UHT) Pizza cheese capacity/day 18 lakh liter. 08 lakh liter. 60 MT 100 MT 60 MT 01 lakh liter. 2.5 lakh liter. 10 MT

Department in production process 1} 2} 3} 4} 5} 6} 7} 8} 9} Receiving Department Calling Department preheating Department Filteration Department Standardization Department Pasteurization Department Chilling Department Packing Department Storage Department

These department works as a chain. They all are related to each other. Shown as under.

PROCESS OF COLLECTING MILK FOR PRODUCTION Reception

Weightage Process

Mixing of milk

Sample

Testing

Final The milk received from unions is being weighted. Than the mixing of milk in trucks takes place. After that the in charge person took sample and tests it. If he thinks it is ok than it is sended to pasteurize machine for further process.

Cheese Production Process Raw milk Pasteurization Rennet milk Cutted into cubes Storage in cold room (storage) Ripening Final product out

Curd process Raw Milk Standardization Pasteurization Maintaining balanced micro flora Packing Storage in cold room

Milk process Received milk Testing Chilling Standardization Packing Storage in cold room

Milk powder production process Pasteurized raw milk Powder plant 200 fer. Milk boil Change into tidiness Continue to boiling process Become a type of powder Packing process

Ice-cream Production Process Pasteurized Raw Milk Milk Homogenize It comes to tanker from pipeline Flavor mixing Anomia freezer {machine} Storage of product Van distribution {-13c}

Ultra heat treatment production process Pasteurized milk Hygienic milk Heating for 1 second Urgently chilled (so bacteria can finished) So it would Homorganic Vacuum Tetra Packing Checking Packs Leakage Storage Automatically

Milk pouch packing Pasteurized milk Balance Tank (part of machinery-where are plastic roles) Milk double deck machine Final pouch comes out

100 pouches/ minute 24 pouches/ canter

Marketing
The biggest brand in dairy industry AMUL in India has almost covered every area of India to distribute its product. Now, in Gujarat = Ahmedabad it had opened 54 Amul parlors in many different locations like gardens, parks, highways, etc. It is one of its advertisement policy/strategy. List of products Marketed:Breadspreads:

Amul Butter Amul Lite Low Fat Breadspread Amul Cooking Butter

Cheese Range:

Amul Pasteurized Processed Cheddar Cheese Amul Processed Cheese Spread Amul Pizza (Mozarella) Cheese Amul Shredded Pizza Cheese Amul Emmental Cheese Amul Gouda Cheese Amul Malai Paneer (cottage cheese) Frozen and Tinned Utterly Delicious Pizza

Mithaee Range (Ethnic sweets):

Amul Shrikhand (Mango, Saffron, Almond Pistachio, Cardamom) Amul Amrakhand Amul Mithaee Kulfi Mix

UHT Milk Range:

Amul Taaza Milk Amul Gold Milk Amul Slim-n-Trim milk Amul Chocolate Milk Amul Fresh Cream Amul Snowcap Softy Mix
Amul Taaza Double Toned Milk

Pure Ghee:

Amul Pure Ghee Sagar Pure Ghee Amul Cow Ghee

Infant Milk Range:

Amul Infant Milk Formula 1 (0-6 months) Amul Infant Milk Formula 2 ( 6 months above) Amulspray Infant Milk Food

Milk Powders:

Amul Full Cream Milk Powder Amulya Dairy Whitener Sagar Skimmed Milk Powder Sagar Tea and Coffee Whitener

Fresh Milk:

Amul Fresh Milk Amul Gold Milk Amul Shakti Toned Milk Amul Taaza Double Toned Milk Amul Lite Slim and Trim Mil

Curd Products:

Amul Masti Dahi (fresh curd) Amul Butter Milk Amul Lassee

Amul Ice creams:

Royal Treat Range (Rajbhog, Cappuchino, Chocochips, Butterscotch, Tutti Frutti) Nut-o-Mania Range (Kaju Drakshi, Kesar Pista, Roasted Almond, Kesar Carnival, Badshahi Badam Kulfi, Shista Pista Kulfi) Utterly Delicious (Vanilla, Strawberry, Chocolate, Chocochips, Cake Magic ) Health : Isabcool

Market Domestic & International

Domestic market:Mother Dairy usually makes production for AMUL and that production of all product trades into the Ahmedabad, Saurashtra & inside of Gujarat only and some of the product also exported to other states. International Market:AMUL also exports products to other countries like china, Japan, Bangladesh, etc. But its sales export in international market is very small.

Competitors in market:The biggest competitors for AMUL in dairy industry are the loose milk traders. As we can see in the following diagrame there is 55% of people uses pouch milk and 45% of people uses loose milk. So the biggest competitors according to AMUL are all the loose milk traders.
Type of milk consumed by people Shifting of consumers from AMUL to other brands

Advertisement
Marketers who believe that only English sounding brand names would succeed in post-British India were proved wrong by AMUL. In production networking and advertising have been much admired. Te current Amul Butter advertising campaign(utterly butterly delicious Amul) with its topical one-liner and preference for outdoor media, has now run for 30 years probably the longest running campaign in India and the winner of the largest number of awards.

The popular Amul Butter Girl of the ads quickly found a place on The packing.

Supply chain
Final product 1} Storage 2} Dealers 3} Parlors/ Retailers 4} Consumers

It is a very simple supple chain of a product. After the final touch to the product directly goes to the parlors or the retailers through the dealers in a safe and cold van.