Aarey Milk

REPORT
Submitted To: mol Muley
Acknowledgement
I would like to thank our Proff: Amol Muley for giving
me this opportunity to study about an organization
process of a dairy Industry . His guidance and support
through out the project was terrific.
Introduction
Aarey Milk Colony was established in year 1949. On
04.03.1951 Central Dairy, Aarey was inaugurated by
auspicious hand of then Prime Minister of India Shri.
Pandit Jawaharlal Nehru.
The Central Dairy, Aarey was constructed for processing
and packing of milk which was collected from Aarey Milk
Colony and to supply same to consumer of Mumbai city.
This Dairy is pioneer of it's kind in entire Asia. After 1970
milk produced in mofussil area was also received in this
dairy. It distributes milk in Western Suburbs of Mumbai
City.
Contd.
In 1961 Aarey established a new dairy at Worli
seaface to meet the need of consumers in the
Central and Southern part of Mumbai city.
Dairy has processing and packaging capacity of
Rs.4.50 lakhs litres of milk handling per day. Milk
product like Energee , Lassi, Dahi and Masala Milk
are also daily manufactured in the plant.
In 1979 Aarey started processing , packing &
distributing of Aarey ghee from the Mother dairy
which is located at Kurla.
Objective
Shifting of cattle / buffaloes from the city
limits.
 Supply of better quality milk to the citizens
of Mumbai at comparatively cheaper rate .
 Maintenance of these animals on scientific
and modern animal Husbandry practices.
Aarey Overview
 Type Government Undertaking
 Founded in 1949
 Headquaters Goregaon(E),Mumbai, India
 Industry Dairy
 Key people CEO, Dairy Incharge
 Products milk and related products
 Turnover 200 crores
 Employee 3000+
The Aarey Concept
Cost effective production, including primarily,
procurement of milk from over two million diary farmers
which, in turn assures poor farmers reasonable prices.
Climbing up in the value chain by diversifying into value
added products, such as milk, sweets, confectionaries,
truly as food company.
Sustained building up loyalty of customers, not by
promoting individual products but all products under the
umbrella of its premium brands.
Facilitating reach to customers throughout the state by a
strong chain of distribution outlets.
Aarey’s Strength
Aarey is not just in the business of development; not
just marketing. The spirit of development can be seen
and felt in everything that they do. Marketing is
simply their tool to achieve ultimate objective –
Human Development.
Aarey is focused on delighting their customer by
developing new new products to meet their
expectations and delivering the best quality products
at the lowest possible prices that they expect. This
unflagging commitment to the consumer explains
their marketing success.
Executive Summary

Anticipation (of customer needs),

Planning (of products as per these needs),
Implementation (in terms of promoting
sales of such products) and finally
Control (of operations at every stage).
DEMING’S POINTS OF MANAGEMENT USED BY
AAREY
Create constancy of the improvement of
product & Service.
Adopts new strategy : Do not ask their
customer pay for their defects and delay’s.
Cease Dependency on mass inspection.
End the practice of awarding business on
price tag alone.
Drive out the Fear.
Various Products
Marked Milk
 Cow Milk
 Full Cream Milk
 Tonned Milk
 Buffalo Milk
Energee
 Energee (200 ml.bott.)
 Coffee/ Chocolate  Energee  ( 200 ml.Bott.)
 Capuchinno/ Mocha  Energee (200 ml.Bott.) .
 Diet Energee( 200 ml. Bottle)
Shrikhand
Aarey Products
Contd.
Long life Cow Milk  (250 Ml. Bott.)
Masala Milk
 Masala Milk  (200 Ml .Bott.)
 Special Masala Milk (200 Ml. Bott.)

Lassi
 Lassi Plain
  Lassi Mango
  Lassi Strawberry
Dahi
Ghee
Peda 
Target Segment Per Day
Cow Milk : 95000 liters
Tonned Milk : 30000 liters
Special Milk : 35000 liters
Energee :22000 bott.
Masala Milk :1000 bott.
Lassi :20000 bott.
Ghee :1500 kg.
Dahi : 500 cup
USP
The quality of milk is checked at the time of reception
& before sending the milk to packaging.
 To check adulteration etc the government has
modern laboratories with latest equipments like
Cryoscope, Density meter, Chromatograph etc.
 The Composition of the product are tested at their on
laboratories before manufacturing the product.
Product which are available at the stores are fresh and
hygiene.
Sales Force Structure
Milk Procurement Distribution Officer

Assistant Milk Distribution Officer

Circle Inspector

Admin Staff

Dispatch Supervisor
Dispatcher Dispatcher Dispatcher
West Zone Central Zone Eastern Zone

Assistant1 Assistant1 Assistant1

Assistant2 Assistant2 Assistant2

Aarey Booth
Sales Outlets
REGION GOVT.CEN X DAIRES Z CENTRE AAREY TOTAL
TRE CENTRE SARITAS

GMMS 2 652 2201 1197 4052

NEW 0 34 318 6 358
MUMBAI

PUNE 0 205 29 12 246

NASHIK 0 46 16 1` 63
AURANGA 0 95 64 20 176
BAD
AMARAVA 0 199 21 1 221
TI
NAGPUR 0 404 14 49 467
TOTAL 2 1635 2663 1280 5586
Aarey’s Pricing Stratigies
At the time Aarey was formed, consumers had limited
purchasing power, and modest consumption levels of milk and
other dairy products.
Aarey adopted a low-cost price strategy to make its products
affordable and attractive to consumers by guaranteeing them
value for money.
Despite competition in the high value dairy product segments
from firms such as Amul, Mother Dairy GMMS ensures that the
product mix and the sequence in which Aarey introduces its
products is consistent.
with the core philosophy of providing milk at a basic, affordable
price to appeal the common masses. This helped Aarey to create
its brand image in the household sector of the society. 
Recruitments
Since Aarey is a government organization and all its
rules and regulation are based on government
philosophies, so its recruitment is also based on the
government criteria.
It is done by a government organizing committee
‘Maharashtra Public Service’& ‘Staff Selection Service’.
The recruitment is based on the merit of caste
reservation system .preferably it is for the schedule
cast people.
Training
The Government takes the initiative to trained the
work force before letting them to work . It specializes
all the workers in there domain and looks after it
periodically.
It conducts training program every year specially for
the workers who looks after the production process.
It also conducts training program for the top level
employees once in a year.
Growth Opportunities
Since Aarey is a government organization and all its
rules and regulation are based on government the
growth opportunities are very less in this organization.
Promotion is done once in every 12 years for the
employees at all levels.
If there are some retirement or vacancies then only the
promotion is done on the basis of potential or merit.
They provide sitting promotion to employee after
completing 12 years.
Direct Process
Manufactures the product
Supplies the product by themselves at their retail
outlet
 No intermediaries involve
Sales directly to the consumers
Meetings
Meetings are held once in a week.
It is lead by the dairy incharge Mr.P.K Rajput.
Discussions which take place are about production ,
sales , customer complains .
Meetings are also held once in a month with the dairy
commissioner where an overview of the whole months
performance is being presented .
 People Power :Aarey’s secret of success

Produce an appropriate blend of the policy makers farmers

board of management and the professionals each group
appreciating its roles and limitations.
Bring at the command to the rural milk producers the best
of the technology and harness its fruit for betterment. 
 Provide a support system to the milk producers without
disturbing the agro- economic system.
 Plough back the profits, by prudent use of men, materials
and machines, in the rural sector for the common good and
betterment of the member producers.
 Even though growing with time and on scale it has
remained with the smallest producer members. In that
sense Aarey is an example par excellence of an intervention
for rural change.
 Competition
The rules ‘ of the game’ of the Indian Dairy Industry have
changed. Unless Aarey redefines its paradigms to meet the
changing times, its risk being left behind. Since 1991, anybody
and everybody has been free to enter the dairy industry and
to reap benefit from the market that our federation created
and nurtured with Aarey . Multinationals, backed by their
surplus capital, are seeking a hefty share of milk and milk
products. At the same time, regional private companies have
been able to penetrate markets on the strengths of aggressive
pricing made possible by cavalier treatment of taxation laws
and quality standards. More recently, Government has even
allowed free import of dairy products, leaving the door open
of dairy open subsidized imports from advance dairying
nations. The dynamics of the Indian dairy industry are now
increasingly linked to the global dairy industry.
Any Questions
Thank you