Haleeb Internship Report

INTERNSHIP REPORT HALEEB FOODS LIMITED

INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION BY

MUDASSAR PERVAIZ L1F02BBIT2091 FACULITY OF MANAGEMENT SCIENCES UNIVERSITY OF CENTRAL PUNJAB FALL SEMESTER 2006

SAMPLE ASSESSMENT PAGE INTERNSHIP REPORT (HALEEB FOODS LIMITED) Internship or Project report submitted in partial fulfillment of the requirements for the degree of BACHELOR OF BUSINESS ADMINISTRATION By MUDASSAR PERVAIZ L1F02BBIT2091

The Internship report of Mudassar Pervaiz is approved: Prof.Kashif Ud Din Khan Advisor Research Project Cell.

Prof. Abdul Rauf Co-Assessor Research Project Cell

Synopsis I was sent to Haleeb Foods Limited to spend six weeks for internship by Punjab College of Business Administration, which was permitted by Haleeb Foods limited. Haleeb Foods limited is one of the biggest dairy foods producing company. Haleeb Foods Limited receives milk at plant after complete analysis and recommended OK by the reception lab. This milk is stored in silos after cooling <10c. Milk from silos is pasteurized as per requirement and after cream separation. (For Skimz milk) Milk is then mixed with powered milk and stabilizers according to recipe and then sent to UHT section for high temperature treatment. After UHT milk is cold up to room temperature and then packed in tetra pack section sealed, stamped and stored. Cream separated is pasteurized and then changed to butter in butter churner. In butter churner low temperature is provided by adding ice in churner, with continuous agitation and revolving of churner. Laban (lassi) formed is separated due to density and drained. Butter is packed and stored or marketed as per requirement. For desi ghee butter from store is sent to melter, in melter temperature is increased with the help of steam jackets. Butter changed to desi ghee. And then sent to process tank in which 4000 kg level and temperature is maintained at 90c by steam, vacuum is produced by steam jet. Here ghee is deodorized; moisture is removed and then filtered in plate and frame filter press. Here sludge is removed and desi ghee from all impurities is sent to product tank, packed and stored. To manufacture plain yogurt and raita, pasteurized milk is sent to yogurt section. Incubation room provides proper temperature to eliminate all the bacteria. To prepare

raita yogurt formed in tanks and then mixing is made according to the requirement and packed, stored and sealed. For juices and other ingredients are mixed and blend to stirred tank in which level is maintained and continuously stirred. After 10 minute sample is tested and acidity is maintained at temperature <10. After standardization juice is either pasteurized or sent to UHT section as per requirement. In UHT juice is treated at 95c for 12 sec. Then packed and stored. For pasteurization juice is sent to balance tank and passed to pasteurizer at 95c and in holding tubes for 16 seconds. From holding tubes it return back to chiller where temperature is dropped to 30-35c and then packing in tetra pack section, then stored.

Acknowledgement We have the pearl of our eyes to admire blessing of the compassionate and omnipotent because the words are bound, knowledge is limited and time is short to express His dignity. It is one of the infinite blessings of almighty ALLAH that He bestowed us with potential and ability to complete the present training and make a material contribution towards the deep oceans of knowledge. First we avail this opportunity to bow our head before ALLAH almighty in humility who given us the wisdom and perseverance for completing this piece of six weeks internship. We invoke peace for Holy Prophet Muhammad (P.B.U.H) who is forever torch I feel highly privilege to ascribe the most and ever burning flame of my gratitude and deep scene of devotion to the Prof. Kashif-uh-Din and Haleeb Foods Limited on providing me the opportunity to have an internship on this leading food production unit. It would honor for me to pay gratitude to Mr. Akbar Ali, production manager haleeb foods limited, on his encouragement and providing me the facility to learn. I am highly thankful to Mr.Atif Iqbal, shift in charge, and his co-fellow Mr. Ali on proper guidance and encouragement. I am also grateful to Mr. Arshad Bhatti, senior manager of research and development department, Mrs. Qudsia Bano, senior manager of quality assurance department, Mr. Jawad Saleem, brand manager of Haleeb milk and cold chilling products and special thanks to Mr. Waqar Assistant Brand Manager for their nice and co-operative behavior and reading to guide attitude during my training. I am also obliged to all the staff and workers of Haleeb foods limited of their co-operative behavior.

No acknowledgement could cover adequately express my obligations to my dear father and mother who ever remembered me in their prayers and supported me in all aspects along awful venues of me academic achievements.

TABLE OF CONTENT SAMPLE ASSESSMENT PAGE........................................................................................2 INTERNSHIP REPORT......................................................................................................2 (HALEEB FOODS LIMITED)............................................................................................2 Company History.................................................................................................................9 Company Profile................................................................................................................11 Company Policy.................................................................................................................12 PROFILE OF THE INDUSTRY.......................................................................................16 Market share...............................................................................................................21 Milk consumption......................................................................................................21 Consumption estimates for milk and dairy products in 1999–2000 are as follows:..21 (Annexure 10)............................................................................................................21 Future demand for milk and dairy products...................................................................21 Self-collection................................................................................................................22 Contract collection.........................................................................................................23 Milk procurement...........................................................................................................23 Reception of Milk..............................................................................................................24 Reception Laboratory.........................................................................................................24 Reception Lab Activities................................................................................................25 Sampling of Raw Milk...................................................................................................26 Detail About reception Lab................................................................................................27 In reception lab following analysis are performed and their purpose given:.....................27 HALEEB PLANT..............................................................................................................33 PASTEURIZATION SECTION........................................................................................34 UHT PLANT.................................................................................................................36 Bottling plant.....................................................................................................................36 Blow Molding Machine.................................................................................................36 Filling;............................................................................................................................37 Powder Plant..................................................................................................................38 BUTTER SECTION..........................................................................................................39 Packaging:......................................................................................................................40 Desi ghee is packed in plastic pouch and tin (1 kg and 5 kg)........................................40 UHT CREAM................................................................................................................40 HONEY CREAM..........................................................................................................40 YOGURT SECTION.....................................................................................................41 HALEEB LABBAN..........................................................................................................42 PREPARATION OF JUICES.............................................................................................44 PLE SECTION...................................................................................................................47 iv) Tray magazine:.........................................................................................................47 v) Tray folder:................................................................................................................48 WASTE WATER TREATMENT PLANT.........................................................................51

SWOT Analysis of PAKISTAN Dairy Industry.........................................................60

Company History Chaudhry Dairies limited was incorporated in 1984 as a Public limited Company. The head office is situated at 135 Ferozepur Road; Lahore while the plant is situated at 62 km Lahore-Multan Road, Bhai Pharu. Commercial production started in 1986 & the company reached its breakeven in the year 1992. In the 1993 milk powder was introduced in the market in the bulk form. Haleeb Foods Limited is one of the fastest growing packaged food companies in Pakistan with an annual turn over rate of 7.2 Billion. It was incorporated on 9th April 1984, while it’s started its commercial production in July 1987. Within a short span of just 2 decades, the company is operating in 5 businesses segments; UHT milk, Cream, Juices, Powdered milk & Butter oil. Haleeb Foods has achieved undisputed leadership in the liquid packaged milk category with a market share of more then 56%. The company has a very strong portfolio consisting of leading National / International Brands; Haleeb, Candia, Dairy Queen, N’rish, Skimz & Tropico. Haleeb Foods is well known for it “first mover” initiatives in product & packaging innovations. The company believes in using leading edge processing & packaging technologies to meet consumer’s expectation of hygienic & high quality food products. Haleeb Foods employs the broadest range of packaging formats; Tetra Brick, Fino, Classic & Foods grade plastic bottles for the convenience of consumer. The company has one of the largest nationwide distribution networks with the help of 1100 distributors/ dealers delivering high quality products even in remote areas of Pakistan. Moreover, it has tapped opportunities in export markets including Korea, Hong Kong, Bangladesh, Afghanistan & the central Asian states.

Haleeb Foods has highly committed & professional management team with a progressive operating style & a good blend of experience & vigor. The company can claim to be the one of the very few Pakistani organization which are truly following the model adopted by the globally successful corporations, which clearly defined rules for the share holders & the management team. In order to provide the best quality products to its consumer, Haleeb Foods has a highly developed & integrated supply chain infra structure. It has heavily invested in a vast network of company operated milk collection centers. Furthermore, a new production facility is being developed in Rahim Yar Khan, which is an area rich in milk collection. The company founded as Chaudhry Dairies LTD in 1984, has now changed its name to Haleeb Foods LTD in 2004. The name has changed but the company is resolve to bring the best food to its consumer remain unchanged. Today, Haleeb Foods takes pride in being a model National organization delivering International quality products & higher value for money to its consumer. The management team at Haleeb Foods strongly Believes that Pakistan offers tremendous potential for growth in the food business due to large consumer base, high acceptance of packaged food & growing middle class consumer segment

Company Profile •

Plant Distance from Lahore

•

Company Established

1984

•

Plant Installation

1985

•

Plant Trials

May, 1986

•

Commercial Production

May 21, 1986

•

Affiliation with CCF-Holland

1989-91

•

Power Plant Installation

1992

•

Breakeven Point Achieved

1994

•

TQM System Established

1994

•

Achieved #1 Position in UHT milk

1996

•

ISO-9002 Certification

1997

•

ISO-9001: 2000 Certification

March 2003

•

HACCP

June 2003

•

ISO-14001 (Certification Recommendation) August 2004

•

Bottling Plant Installation

1998-99

•

Total Land

81,000 Sqr.Mtr.

•

Plant Covered Area

12,000 Sqr.Mtr.

•

Colony Covered Area

19,600 Sqr.Mtr.

•

Admin Block Covered Area

600 Sqr.Mtr

62 KM

All this and more makes Haleeb Food Pakistan No 1 and fastest packaged growing food company. As of fiscal 2005, its annual turn over is Rs. 7.2 billion. (Annexure 1)

Company Policy We are committed: 1) Build branded food business to improve the quality of life by offering tasty, Safe, hygienically processed, affordable, highly nutritional food products through environment friendly processes to our customer while maximizing stake holders’ value. 2) Meet the requirements of all the relevant legislation & regulation related to Customer satisfaction & safety, environment& other applicable laws etc. 3) To prevent pollution through controlling level of harmful emission, effluents & other wastes. 4) Contribute to the safe & the healthy environment for our country. 5) Promote mutual trust with customers, suppliers, employs, shareholder & Community. 6) Provide all the necessary resources for the continual improvement in quality, safety of our products, process & environment. COMPANY VALUES • Accountability • Team Work • Enterprise • Empowerment • Trust COMPANY VISION. Most innovative & fastest growing food company offering Products enjoyed in “every home every day”.

PRODUCT RANGE Haleeb Foods Limited is producing the quality products as per the standards of ISO & HACCP. Along with the quality products, Haleeb is also producing the wide range of the products including milk based products, juices, powder etc. The products can be divided into following ways: Consumer products Products, which are branded and are sold to the end consumer through a distribution chain in the packaged from as produced by the company. Consumer products are sold under following brand names: 1) Haleeb (Umbrella brand) i.

Haleeb UHT Milk

ii.

Haleeb UHT Cream

iii.

Haleeb Yogurt

iv.

Dairy Queen

v.

Haleeb Gold

vi.

Haleeb Good Day Pure Juices (Mango, Orange, Apple, Mix, Pineapple, Red grape)

vii.

N’rish (Instant Full Cream Powder Milk)

viii.

Asli Desi Ghee

ix.

Haleeb Fun Day Juice Drinks

x.

Haleeb Laban (Saltish & sweetened)

xi.

Haleeb Tea Mix (Plain & Cardamom)

2) Candia i.

Candia Candy Up Flavored Milk (Brick)

ii.

Candia Bottles

iii.

Candia Liquid Skimz

iv.

Candia UHT Milk (Brick)

3) Tropico i.

Tropico Fruit Drink (Mango, Apple, Mix)

Industrial Products Haleeb Skimmed milk Powder (SMP) was introduced in 1992. Apart from internal use, it is also sold as bulk products. Instant Full Cream Milk Powder (IFCMP) was introduced in 1996. Both products are sold in 25 kg bags. Excess milk fat is sold unprocessed to makers of butter, ice cream and sweeteners, or at request is turned into ghee. Export CDL started exporting its products in 1999 and has done business with customers in Korea, Afghanistan and china, United Kingdom.

PROFILE OF THE INDUSTRY World milk production Two thirds of total world milk is produced by Brazil, India, Pakistan, Poland, Russian Federation, USA, and 15 EU member states. Annexure 2 shows Pakistan’s share in the total production of the world according to which, Pakistan in the fourth largest milk producer in the world. (Annexure 2) Growth in milk production in the developing countries: In the previous annexure, we have seen the total world milk production, which was 600 million metric tons.

Developing countries produced one third of total world milk

production in 2000 (216 million metric tons) and it is increasing. According to FAO estimates, it is projected to reach 475 million metric tons in year 2030. Annexure 3 gives projected estimates of growth of milk in developing countries. (Annexure 3) World milk production by type of milk Various animals including buffalos, cows, sheep and goats produce milk. Total world milk production is dominated by cow’s milk followed by buffalo, goat and sheep. According to FAO estimates, out of the total milk production in 2001, cow’s milk accounted for 84.6% of the total world milk production followed by buffalo milk (11.8%,), goat milk (2.1)% and sheep milk (1.3%). (Annexure 4) (Annexure 5) MILK PRODUCTION BY REGION IN PAKISTAN (Annexure 6) MILK PRODUCTION BY TYPE AND REGION IN PAKISTAN

Milk production in Pakistan Pakistan is the fourth largest milk producer in the world. About a third of the total milk produced by the rural families’ flows out to urban consumers and processing industries. In urban areas milk is available to common consumers in two ways: loose / unprocessed milk and packed/ processed milk.1 Dairy companies such as Nestle and Haleeb are the main part of milk marketing structure. Haleeb Foods Limited (HFL) as local company, which developed from a small structure. Livestock sector in Pakistan contributes almost 50 percent to the value addition in the agriculture sector, and almost 11 percent to GDP, which is higher than the contribution made by the crop sector (47.4% in agriculture and 10.3% in GDP). The role of livestock sector in the rural economy is very crucial as 30-35 million rural population of the country is engaged in this sector for its livelihood. Within the livestock sector, milk is the largest and the single most important commodity.2 Pakistan also has an industrial production capacity of approximately 47.5 million liters per year of ice cream. Pakistan's dairy industry is plagued by a number of problems which include lack of commercial dairy farms, low productivity due to poor nutrition, a weak infrastructure, lack of financial facilities, and the ready availability of raw milk to a poor and uneducated population. Although Pakistan was ranked fourth among the five leading milk producing countries in the world, with an estimated 24 million animals having produced closely to 28 million tons of milk in year 2003 and over 31 million tons during 2005-06 as the 5th largest producer of milk in the world, its yield per animal is only one-fifth of that of Western Europe.3 The total year wise milk production of Pakistan is shown in (Annexure 7)

1

Consumers International Asia Pacific Office, 2006 Govt. of Pakistan, Economic Survey 2005-06 3 FISDA-USAID, 2006 2

Milk processing and marketing In Pakistan only 3-4% of the total milk is processed and marketed through formal channels whereas the remaining 97% of the milk reaches end users for immediate consumption through an extensive, multi-layered distribution system of middlemen. However the processed milk consumption is growing at the rate of 20% per year. Pasteurized and UHT milk in tetra packs are very popular products (PISDA-USAID, 2006). Most milk shops and bakeries across Pakistan manufacture and sell traditional dairy products like Dahi (Yogurt) and Khoya (Condensed milk sweet). Large dairy shops also produce Desi ghee and butter. Processing plants have also introduced a number of dairy products like yogurt, drinking yogurt, flavored milk, cream, butter, ghee, cheese, ice cream etc. The quantities sold however are small except for yogurt & butter. Industrial processing units in addition to the traditional traders of sweetmeats, milk, yogurt, ghee and other dairy products have been set-up. Most of processing capacity is concentrated near larger markets and away from potential sources of milk. More than 53 modern milk-processing facilities were established before 1974. By 1974 less than half were operating and after the introduction of the first UHT, longlife milk plant came into operation. Estimates of processing capacity in Pakistan are given in (Annexure 8) Milk price As a result of a complex collection and distribution system, the current milk quality in Pakistan is below international standards. The average farm gate price of milk is Rs 10 per liter. It varies from Rs 8 to Rs 16 per liter depending upon the season.4 Variation of farm gate price is not linked to the quality of the milk. It is rather determined by two factors. One is the financial arrangement between the buyer and seller. The second factor is the geographical location. In areas where livestock rearing is difficult due to very hot weather or scarcity of fodder like in Rawalpindi, farmers get a better price for their milk. 4

But when the price of the fodder is taken into account, the net income of these farmers is not significantly higher than the income of farmers from other areas of Punjab. Currently, there are no policies to regulate milk prices at the farm level. The middlemen, contractors, Gawalas (local milk collection, transportation, and distribution people) processors, processed unpacked milk, loose milk, and processed milk are the segments of the dairy value chain. The processed packed milk costs Rs. 36 per liter where as the loose milk costs Rs 24-26 per liter. Around a third of the total milk produced by the rural family’s flows out to urban consumers and processing industries. More than half of the milk collected by urban traders and processing industries comes from small herd families. The family's decision to sell milk and the amount to sell is clearly poverty driven. Small farmers sell milk only because they have no other source of cash income. Milk in urban areas is accessible to common consumers in two ways: loose, unprocessed milk and packed, processed milk. Each has its own price regime. The unprocessed milk passes through the middle persons before it reaches the urban retailer. The price of milk increases by one rupee per liter at every stage of sale. The 'Dodhees (Gawalas)’ generally have undocumented contracts with farmers for regular milk supply. They pay farmers an average price of Rs. 10 per kg. Some 'dodhees' have milk storage and chilling system and transport system. Transportation generally costs Rs.0.50 to Rs.1.0 per liter. 'Dodhees' make one rupee per liter. (Annexure 9) The urban retailers deliver milk door to door, by motorbike or sell it in a shop to consumers. Consumers pay between Rs.18 to Rs.28 per liter depending on the fat content of the unprocessed milk. Margins

As mentioned earlier, the HFL were paying Rs. 14-22 according to percentage of SNF in milk per litre to the farmers and the commission agent who collects milk on the behalf of the HFL was paid Rs. 1 per litre. The company packed UHT milk is being sold in the market at Rs. 36 per litre. Now the differential paid by the consumer as compared to what accrues to farmers is Rs 12-22. Not all of this goes to the HFL. According to what was gathered from the discussions with the field staff of the company was that the company was paying Rs. 1 per litre to the collection agents and Rs. 7 per Km for transportation from the collection centre to PHE to a Hilux Van owner and Rs. 11 to Mazda Van owner which has comparatively more capacity that a Hilux Van. The HFL officials also told that the company was paying Rs. 16 per Km to big vehicle owners to transport milk from PHE to the processing plant as transportation cost. Since the company officials were not forthcoming on the cost issues, it could not be gauged as to how much cost was incurred by company on packaging. There are no price controls and this has happened after the introduction of local government system under the devolution plan.

Companies are given free hand in

charging enormously high prices for processed milk. They procure milk at 6.5% fat content and supply milk to the consumers at 3.5% fat content. Moreover, the companies also produce different by products by way of which they earn extra profits. High concentration of economic power in the late 1960 required a competition regime in Pakistan and eventually the central government enacted an Anti-Monopoly and Restrictive Trade Practices Law in 1970. This is called “the Monopolies and Restrictive Trade Practices (Control and Prevention) Law and an institution in the name of Monopoly Control Authority (MCA) was formed. The broad objectives of the law are to provide measures against undue concentration of individual economic power, monopoly power and restrictive trade practices. The law spells out the situations, which shall be

deemed to constitute undue concentration of economic power, unreasonable monopoly power and unreasonably restrictive trade practices. The law prohibits these clearly defined situations and collects information through the process of registration about these and other circumstances, which are likely to lead to such situations. In the case of milk, the MCA has not yet taken cognizance of the high price differential between the fresh and processed milk. Market share As far as market share is concern according to “Digest of Industrial Secters in Pakistan” in a UHT packed milk category MILK PACK is dominated by other brand having more then 3000 collection centers and get market share more then Haleeb FOODS LIMITED that was 44%, and as Engro Chemicals also steps in the diary industry and launches a milk name “OLPERS” and in less then a year they declare a notice on September 13, 2006, as per the notice they able to captured 9% of market share and utilizing their 70% capacity of their production unit is going to set another milk processing plant in Punjab. And rest of 2% comes under NIRALA, GOOD MILK, and NURPUR. Milk consumption Consumption estimates for milk and dairy products in 1999–2000 are as follows: (Annexure 10) Future demand for milk and dairy products The demand for liquid milk and dairy products in Pakistan will definitely continue to increase, the most important reason being growth of the human population. Other variables influencing demand are the growth of personal incomes and the evolution of

prices. The demand for 2010 has been predicted and the results are presented in Annexure 11. Milk collection There are two types of milk collection systems adopted by HFL namely self-collection and contract collection. Self-collection A system in which HFL purchases and preserves raw milk that meets its quality standards through their staff members and delivers at PHE are known as self-collection. It may include the following: Milk Collection through Village Milk Collection Centre (VMCC) Village Milk Collection Centre (VMCC) is a place where the farmers of an area come and give milk and a person appointed by the company collects milk after testing it. The person who collects milk there from the farmers is known as VMCC agent. It is provided by all the essential utilities for the milk collection such as collection tub, testing chemicals, ice and the rent of the place as well as the electricity bill. At VMCC the agent keeps the record of all the farmers who supply milk at VMCC and takes samples from the milk. The samples are tested and receipt is given to the farmer and a copy is kept at the VMCC for record. The mode of payment at VMCC is weekly i.e., after a week, farmers go to bank and receive their cash of all the week from their account. Direct from Farmers (DF) The collection vehicle, when goes to an area for the milk collection, there are some farmers who don’t supply milk at the VMCC. They are aware of the timings of the collection vehicle, so they supply milk directly to the people in the vehicle.

Progressive Farmers (PF) Progressive farmers are those farmers those who deliver the milk in a large quantities and supple directly to the collection vehicle. Contract collection It is the system in which HFL deals with the different private milk collecting persons and enters into a contract with them to provide milk to the company. They may include the following: i. Mini Contractors Mini contractors are those who provide milk about 1000 liter of milk per day. They collect milk on their own. In this type of collection, the company identifies personnel who are willing to work and are of good repute with fair dealings. The mini contractor collects milk from the farmers of the area as well as from the other areas. Milkmen from different areas also supply milk at mini contractor’s place. A company vehicle collects milk from these minis contactors. The MOT (mobile tester) with that vehicle tests the milk according to their quality standards. If it passes the tests, it is accepted and rejected otherwise. ii. Sub-Contractors Sub Contractors are almost the same as that of mini contractors but the main difference is that milk is collected from the mini contractor’s place but sub contractor has to transport milk to the PHE of the company. Annexure 12 Milk procurement

Manager Milk Procurement (MMP) Plant is responsible for all the milk procurement in the milk area. Milk collection area, which consists of mainly the provinces of Punjab and Sindh, is divided into four regions headed by an MMP (Region). These regional offices are at Arifwala, Chishtian, Jhang and R. Y. Khan. Each region consists of 3-4 zones; a Zonal Manager heads this. There are 14 zones under these 4 regions. Executive Zonal Manager or an Area Executive depending upon the size of daily collection heads each zone. Each zone consists of 2-3 sub-zones. At sub-zonal level, there are PHE (Palate Heat Exchanger). Under these sub-zones come VMCCs, mini contractors and sub contractors, which are further responsible for the milk collection. Milk collection area There are 14 zones for self-collection of milk having 28 Main centers (PHE) HFL Milk collection area: (Annexure 13) Reception of Milk Milk is collected from villages, forms and other local milk mans’. This milk is sent to Haleeb plant through own tankers. Some suppliers also collect milk and sent it to plant by their own means. This milk is first tested in reception lab after weighing. Reception Laboratory When the tankers enter into to the HFL Premises, a token is given to him, which contains the following things: i.

Name of the supplier/ Area.

ii.

Number of the tanker.

iii.

Token # allotted by the gatekeeper.

iv.

Any thing attached to the truck e.g. Tire. Bag.

Then the truck goes to the parking area from where sample is taken by the reception lab technician. Then reception lab technicians perform the tests needed, if the results are ok, the sample (ACCEPTED) is marked on the token, and then the truck goes to the weighbridge where it is weighed. Then truck comes to the receiving area where finally the reception of the milk takes place by the centrifugal pumps & stored into the silos. Then the empty truck again goes to the weighbridge & again weighed & finally goes out of the HFL. Weight of milk = Total weight – Empty truck weight Volume in liters of milk = weight in kilogram / specific gravity of that milk Reception Lab Activities Reception lab is a place where the composition of milk and adulteration in milk is usually determined by a number of tests on arrival at the dairy & adulterated milk is not accepted. Quality assurance HFL has a strict and stringent quality policy regarding intake of raw milk. At every PHE rigorous quality tests are conducted to ensure that only fresh milk of the highest quality is accepted at the plant premises. The internationally recognized tests are used to check for a) adulteration, b) microbiological contamination and c) adequacy of nutritional contents.

Sampling of Raw Milk Ice is removed from tanker and the milk is thoroughly mixed with the plunger for 1-2 minutes, then the lab technician with the help of sampler, does the sampling. Types of Sample: Composite Sample: Mixed sample is taken from all the portions of a tanker in equal amount. The amount of composite sample is 900ml. Separate Sample: Sample taken from a single portion of the tanker is called separate sample. The amount of separate sample is 600ml. Tests performed in reception lab They performed the following tests in the reception lab. Oranoleptic Tests i.

Taste

ii.

Smell

iii.

Color

Qualitative Tests i.

Temperature test

ii.

Clots on boiling (COB)

Chemical Tests i.

PH

ii.

Acidity

iii.

Alcohol precipitation test

iv.

Salt test

Quantitative Test i.

Fat test

ii.

Lactometer reading for SNF and TS

iii.

Iodine value test

Adulteration Tests i.

Starch test

ii.

Glucose test

iii.

Detergent test

iv.

Sugar test

v.

Urea test

vi.

Sodium test Detail About reception Lab

In reception lab following analysis are performed and their purpose given: Milk analysis is carried out to determine: •

Freshness

•

Adulteration

•

Bacterial content, and

•

Milk constituents for payment calculation.

Sampling A representative sample is essential for accurate testing. Milk processors usually pay for milk or cream on the basis of butterfat, and a single butterfat test may be used to determine the butterfat content of thousands of liters of milk or cream. Therefore, an accurate and representative sample must be obtained. Milk must be mixed thoroughly prior to sampling and analysis to ensure a representative sample. If the volume of milk is small, e.g. from an individual cow, the milk may be poured from one bucket to another and a small sample of milk taken immediately. But if large volumes of milk are handled, stirring must mix the cream or milk. However, it is very difficult to obtain a representative sample of milk or cream when a large volume is dumped into a large container. In such a case the milk must be stirred thoroughly and small samples taken from three or more places in the container. For best results, milk or cream must be sampled when it is at a temperature between 15 and 32c. If the cream is too cool it will be thick and viscous and will be difficult to sample. Sour milk or cream, in which casein has coagulated, must be sampled frequently. Sampling sour milk follows the same procedure as for fresh milk. if the milk or cream has been standing for a long time and a deposit has formed on the surface and sides of the container, it should be warmed while agitate before a sample is removed. A. Organoleptic Tests Purpose: This includes the test of smell, color and taste of the milk and the purpose of these tests to check the suitability of milk for further processing or release to the market.

B. Qualitative tests This test includes two types of tests. i) Physical tests These tests have two more sub categories namely clot on boiling test and temperature tests. a) Temperature tests: The temperature of the raw milk sample should be less then 10c. b). Clots on boiling (COB): Milk is heated to boiling and if milk precipitates in the test tube, the test is positive. ii) Chemical tests Chemical tests are of three types namely pH Test, Alcohol Precipitation Test and Salt Test. a). pH Test pH test is performed to judge the keeping quality of milk or to estimate the intensity of acidity/alkalinity of milk. b). Alcohol Precipitation Test (APT) APT is performed to check the heat stability of milk during heat treatment. precipitation occurs, the test is considered to be positive. c). Salt Test Salt test is administered to determine percentage of salt (such as Na Cl) in Milk. Results: % Salt = burette reading x 0.065

If

% Salt (as chloride) = Burette reading x 0.065 x 9/ SNF (%) of sample. C. Quantitative test Quantitative tests include Fat Test, LR Test and Iodine Value Test. i). Fat Test Fat test is performed to determine fat percentage in milk sample to check if it conforms to HFL standards (i.e. 6 %). It also forms basis of payment to farmers. ii). LR Test: LR test is conducted to determine percentage of SNF/Total solids in milk sample. Results %SNF = (LR/4)+(0.22XFat)+0.72 =% SNF Total Solids Percentage = SNF Percentage + Fat Percentage iii). Iodine Value Test (IVT) IVT tests the value of iodine in milk by following formula. This test takes maximum time of all the tests so this test is only carried out at the main plant. Formula: Iodine value = Where: a = number of ml of 0.1 N sodium thiosulphate used in the blank test. b = number of ml of 0.1 N sodium thiosulphate used in the titration with the butter-fat present. p = weight of butterfat taken for the analysis.

D. Adulteration Test Milk is adulterated by mixing various things in it. HFL performs several tests to find out different adulterants. Tests include Starch, Sugar, Glucose, Detergent, Urea, and Sodium tests. a) Starch Test The purpose of this test is to determine the starch adulteration in the milk. If black or dark blue granules are present, the test is positive. b) Glucose Test Glucose test is performed to know the adulteration of glucose to increase the sugar contents of the milk. If brick red precipitations are found, the test is positive. c) Detergent Test: This test refers to detect the harmful detergents used as adulterants. Pinkish color shows that the test is positive. d) Sugar (Sucrose) Test: It is also an adulteration test. If deep violet color is present after 5-8 minutes, the test is positive. e) Urea Test: In this test, milk is tested for the adulteration of urea as urea mixing increases the LR reading of the milk. If pink color appears, the test is positive. f) Sodium (Na) Test: Sodium Test is performed to determine Na salt concentration in the raw milk. If the Na ion concentration at 9% SNF is more than 1000ppm, the test is positive.

All these tests take about 30-40 minutes excluding the iodine test, which takes about 3-4 hours. If any of the tests reports positive, milk is rejected.

HALEEB PLANT I visit and study the following section of Haleeb plant during my internship. i.

Pasteurization

ii.

UHT plant

iii.

Bottling plant

iv.

Powder plant

v.

Butter section

vi.

Ghee section

vii.

UHT cream

viii.

Yogurt and Raita section

ix.

Juice section

x.

PLE section

xi.

Boiler house

xii.

Waste water treatment plant (ANNEXURE 14)

PASTEURIZATION SECTION RECEPTION OF MILK After reception lab testing and recommending OK and stamped “ACCEPTED” by reception lab shift chemist, the tank is sent to milk reception section, where milk is sucked through filters by centrifugal pumps, and then passed to chillers. Milk is then chilled to < 10c (normally about 6c) in plate chiller in which ice cool water is used and then stored in storage silos. Milk from storage silos comes to pasteurization section where pasteurization takes place in following ways: PASTEURIZATION The founder of this process is Louis Pasteur; in which heat treatment is given to the milk in order to inactivate the enzymes and destroy the pathogenic microorganism and it also produce whitening in the milk. The shelf life of the milk is increased up to 7 – 8 days after pasteurization. There are four main processes take place in it: Heat Treatment It has three parts:  Regeneration No.1  Regeneration No.2  Heating And Cooling Section Separation. Deodorization

Homogenization The following steps take place in the process of pasteurization: Balance Tank: From the silos milk comes in balance tank through a big filter. Balance tank have a central float ball, which control the quantity of in coming milk by a valve and maintain level as needed by the process. Regeneration No.1 From balance tank milk goes to regeneration no.1, where the temperature of the milk is raise o 35 – 40 c by regeneration method. In regeneration no.1 the milk and the hot milk coming after pasteurization has counter flow. Regeneration No.2 Then the milk goes to regeneration no.2. It is also part of plate heat exchange (PHE) in which milk is heated to 55 – 65c. Separator: From regeneration no.2 milk goes to separator that will separate the extra butterfat from the milk in the form of cream and it will also remove the unwanted material in the milk (Sludge). Separator work at 6000 – 7000 rpm and it has porous stacked plates.

Due to centrifugal force, fat particles having less density are separated from the milk. Impurities are also separated through the centrifugal action, as they down at the bottom, from where these are dispose off.

Deodorizer: From separator milk goes to deodorizer. As the name indicates it deodorize the bad smell of milk. It is steel tank and divided into two parts. The lower portion of deodorize contains chilled water line, which cools the central plate. Milk falls in the cold surface; the bad odor vapors rise upward and these are sucked our by vacuum pumps and released our after condensation along with water. Homogenizer: From deodorizer milk goes to homogenizer in which milk is passed through nozzle at high pressure of 100 – 150 bar. UHT PLANT (Ultra Heat Treatment) In pasteurization only vegetative forms of bacteria are killed while spore farming microbes, the most pathogenic microorganism still exists. Ultra Heat Treatment (UHT) is done in order to kill these microbes and to increase the shelf life of the milk. After pasteurization the milk is stored. After pasteurization milk is stored in silo 3 1, 2,3,4,5 at 6 – 8 c. (Annexure 15) Bottling plant UHT milk is also filled in bottles. Candia plant is the only bottling plant for milk in Pakistan. Empty bottles are also formed in the Haleeb Foods Limited. Blow Molding Machine Following steps are involved.

Feeders: Bottles making material is imported from France. It is in granular form and is of two types. i) HDPE (High Density Poly Ethylene) White. ii) HDPE Black Grinder: Necks of the bottles and discarded bottles are grinded here into small pieces to be used in middle lawyer along with black granules. Blow Molder: Material is heated and transformed into the main head and then the bottle is cooled immediately by the circulation of cold water (8 – 10c) into the molder. Neck Trimmer: Necks of the bottles are removed, as they are not needed. Storage: Bottles are stored in the silos. There are two silos for storage each having storage capacity of 70,000 bottles of ½ liter or 35,000 bottles of 1 liter. Filling; The bottles come to the filling machine by the conveyer. Conveyer separator makes the proper distance among the bottles. The UHT milk comes to the filling machine from the UHT section. Open filling tubes take place in the bottles. The sensor controls the amount of milk in bottles. After filling Aluminum seal is placed on the bottle and seals the bottles.

Printing: After sealing Ink jet printer print the date and time in each bottle. Then the bottle goes toward the round table for cage filling.

Powder Plant There are mainly produced four types of powder products in powder plant.  Skimmed milk powder (SMP)  Instant skimmed milk powder (ISMP)  Full cream milk powder (IFCMP)  Instant vegetable full cream milk powder (IVFCMP) There are two main section of powder plant. •

Evaporation section

•

Drying section

After reception of raw milk it is pasteurize, standardize according to requirement of finished product. Standardization means to adjust the fat, SNF in raw milk to requirement of end product. After standardization milk reaches in evaporator where milk is first heated then evaporation is done under vacuum, as result condensed milk is produce. Then the milk is heated to 75 – 90 c. Then the condensed milk is converted in powder milk in drying section and become powder particles. Then further moisture of powder reduces by passing hot air. At the end sieving and packing is done.

BUTTER SECTION Pasteurized cream is used for the production of butter. Two types of butter are produced in Haleeb Foods Limited. 1) Plain 2) Salted Plain Butter: Pasteurized cream (50 – 55%) is transferred to balance tank of the churner through the trolleys. Normally the churner is filled to 40 – 50 % to allow a room for foaming. Ice water is showered on the rotating churner to maintain the temperature. The churner is self-rotating and it also have agitator, both are in opposite direction. So butter is separated due to churner and agitating action. Butter yellow color and beta-carotene is added in churner. Churner revolves at 40 rpm for 15 – 20 minutes. Buttermilk is drained after checking its LR and fat %. Then double washing is given to the butter. Butter contains 80 – 84 % fat at the end. Salted The procedure is same as the plain butter but the salt is added at the end by making its solutions in water. Now rotate the churner at slow speed for 20 – 25 minutes, so that salt is mixed will. (ANNEXURE 16) Churning Recovery: Churning recovery is the measure of how much of the fat in the cream is converted into butter. It is expressed in terms of that fat remaining in the buttermilk as a % of total fat in the cream.

Ghee Section Haleeb Foods Limited is also producing Desi Ghee with the brand name of “ASLI DESI GHEE”. It is made from the butter. Butter is transferred into the under ground tank, here heated in double jacketed tank with the help pf steam. Then the butter is transferred into the ghee melter, which has the capacity of 800kg. Here 70 – 80c temperature is given for 6 – 8 hours at 1 – 1.5 bar pressure. Heating is done with steam coil. Setting time for the ghee is two hours. The residues, which are called sludge, settle down at the bottom of the melter and drained our. Reheating is done. Repeat the process for 2 – 3 times. Then ghee is transferred into the storage tank where antioxidants are added @ 0.03%. Combination of BHA and BHT is used in the ratio of 20:18. The antioxidants are solved in the edible oil and then added into the ghee. Then the quality tests are performed and finally packing is done. Packaging: Desi ghee is packed in plastic pouch and tin (1 kg and 5 kg). UHT CREAM (Plain & Honey) For cream separation milk is received and stored as per UHT milk HACCP plan. During pasteurization cycle when milk is passed through separator, the cream is removed which is further processed as, HONEY CREAM All the procedure is same as the plain cream only 3% honey is added during its production. (ANNEXURE 17)

YOGURT SECTION Plain yogurt, Mint raita and Zera raita is also produced in the Haleeb Foods Limited. Following steps are involved in the making of the yogurt. Milk Reception: Reception of raw milk is done as per HACCP plan and stored at below 10c. Milk is de creamed and pasteurized according the standards. Standardization: 1st standardization of batch for Haleeb yogurt is done as per recipe. For standardization following additions is made.  Condense Skimmed Milk  Pasteurized Milk  Cream Storage  ISMP/ IFCMP  Water Milk from standardization is stored in a stirred tank called as Y-5 and following additions are made according to the product. All compounds are mixed in mixing tank and sent to Y-5, here complete mixing take place. Then the portion of the batch is heated to 50 – 60c. Then this portion is added into full batch and mixed properly. Homogenization

Milk is heated to 90 – 50c for 3-5 minutes for pasteurization. Pasteurized milk is homogenized at 150 to 180-bar pressure. This milk is then heated with the help of hot water. From heater milk is filled to plastic cups in filling machine and packed and sent to incubator room. Filling is done in 200, 100g, and 450g. Capacity of homogenize is 12000 Liter per hour. Filling Yogurt is heated to 40 – 50c and filled in plastic cups. Aluminum seals are applied and for further protection plastic lids are placed on the cups. Incubation Filled cups are then stored in incubator room and a temperature of 38 – 42c for 3 – 4 hours. Continuously pH is checked and at attaining a 4.6 value it is then shifted to cold storage to stop the further bacteria growth. Chilling & Storage: Then these cups are immediately chilled at < 2c temperature in the blast room and after 24 hours product is checked and dispatched. HALEEB LABBAN (SWEET & SALTISH) In Haleeb Foods Limited labban is produced in both tastes as saltish and as sweet. For labban production milk is treated in following ways. 1) Pasteurization: Milk is pasteurized in pasteurization section as for other milk products.

2) Batch Standardization: From pasteurization milk is received in a stirred tank called Y4. In this tank adding pasteurized cream, skimmed milk, condensed milk, and pasteurized water. From here after standardization milk is again sent for pasteurization, where pasteurization of milk takes place at 95c for 3- 5 minutes and homogenized at 150 bars. After repasteurization milk is sent to again stirred tank Y3. From Y3 milk is sent to tank Y4 through heater. 3) Fermentation: Milk is shifted to Y4 and then whole milk is agitated for 10 minutes. Then agitation is stopped and milk is allowed to ferment for about 3 – 6 hours. During fermentation pH is monitored when it comes up to 4.7 – 4.8 additions are made. To add into it sugar (for Sweet Labban), CMC (Dry Milk), and hot water in separate tank, agitate them to completely mix for about 15 –25 minutes. And them shifted to Y4, where homogenized. This is then chilled to 25 – 30c in PHE giving several circulations to about 30 minutes. And then shifted to UHT section. 4) UHT of Labban: For UHT of labban, labban is received in UHT section and treated as like of milk but at a low temperature. 5) Sterilization: Labban is sterilized at a temperature of 100c. And then cooled to ambient temperature. 6) Packing:

Labban is packed in tetra pack machine at ambient temperature to a volume of 250 ml, and then sent to PLE and stored.

PREPARATION OF JUICES Following four types of juices are produced by HALEEB FOODS LIMITED. 1. Good Day 2. Tropico 3. Fun Day 4. Nectar Further details of their flavors are as under: GOOD DAY: 1) Apple 2) Red Grape 3) Mango 4) Pineapple 5) Orange 6) Mix FUN DAY: 1) Aamonka 2) Arochi 3) Mangrrod 4) Iv.Aamnas

TROPICO: 1. Apple 2. Mango 3. Mix

NECTARS: 1. Apple 2. Mango 3. Red blood 4. Kino 5. Mix All the four flavors have same procedure except the ingredients. But for mango mixing sugar and supper cool is done separately and then slowly with other thing mixed to main juice tank. Following steps are taken for the production of the juice: 1) Batch Standardization: All ingredients are taken in the tank Y2, Y3 and Y4 for batch standardization through blender. Ingredients are added into hopper of blender and by water it goes to mixing tanks. After adding all ingredients level of tank is maintained by adding pasteurized water. Mixing sample is tested by lab and further additions are made to mach the standard of quality and acidity. To decrease acidity water is added. To increase acidity citric acid is added. For GOOD DAY juices all quality is maintained by adding water, pulp. Following things are used to standardize batch.  Pulp  Color

 Stabilizer  Sugar  Water  Flavor After standardization juice is either sent to UHT unit if required if not then sent to pasteurizer.

2) UHT: UHT of juice is same as that of milk only difference is that got juice temperature is 90c. After UHT juices sent to tetra pack machine, packed and stored. 3) Pasteurization: After standardization of batch the juice is pasteurized in holding tubes. From holding tubes it comes back to pasteurizer section called as cooler where it cooled down. Then juice is ready to packing and sent to packing section. 4) Packing: After pasteurization the juice is packed in the tetra pack in the 250ml and in 1 liter packing. From tetra pack section juice is packed in trays and sent to store after tray polythene cover. (Annexure 18) (Annexure 19)

PLE SECTION The bricks are pouches of the milk are packed in the trays, which are further packed by the polythene sheet. Tray packers’ machines are present alternates to the Tetra Pack machines. Following steps are involved 1- Packing in trays 2- Stacking on pallets 3- Shrink machine 4- Shifting to warehouse. 1) Packing Machine These packing machines have following parts: i) In feed Chain It consists of the conveyer, which brings the bricks from Tetra Pack to the machine inlet. ii) Tray Holder: It holds the tray magazine. iii) Tray pusher: It brings the trays from the tray magazine to the tray folder. iv) Tray magazine: It consists of the trays.

v) Tray folder: It folds the trays for loading of bricks in it. vi) Hot Melt Unit: It applies the gum to the flap of the trays. vii) Hot Melt Tank: In it gum is heated at 350c. viii) Out Feed: From the tray having bricks come out of the machine. ix) Conveyer: It leads the tray to the shrink machine. Out put sensors are used to control the flow of the trays. The products of Tetra Pack machines, TBA, K1, G1, G2, H, I, J, K2; TCA, N.I, A1 and all the TFA, are manually packed. 2) Shrink Machines: There are two shrink machines in Haleeb Foods Limited. 1- Shrink machine A 2- Shrink machine B These machines have following parts: i.

In feed

ii.

Tray pusher

iii.

Poly film

iv.

Jaw (seals at 55c and then cuts)

v.

Heater (wraps the tray at 150c)

Dairy queen is packed in closed cartons they are sealed by scotch tape. (ANNEXURE 20) FLOW DIAGRAM OF PLE (ANNEXURE 21) ASEPTIC FILLING CIP (CLEANING IN PLACE) Definition: NCIP is removal of milk particles and lowering the microbial load in the production line and in the raw milk tankers by using various types of cleaning agents (Acid, Base and Water) and temperature. Function Of Various Cleaning Agent In CIP  Lye for removal of fat residues.  Acid for the removal of protein matter.  Hot water for the removal of residues and salt.  Acid and hot water also used for lowering microbial load. Types:

Two types of CIP are done in the Haleeb Foods Limited. 1. Short CIP (40 minutes) 2. Long CIP (90 minutes)

Short CIP: 1. Milk is drained out of the tanker or the pipelines and then it is washed with water for 10 minutes. 2. After this Lye (NaOH) solution is circulated in the tank or lines for 10 minutes. 3. Again tanker is washed with water for 5 minutes. 4. Then nitric acid (HNO3) is circulated in the tank or lines for 10 minutes. 5. Again tanker is washed with hot water for 5 minutes. Long CIP: 1. Milk is drained out of tanker or the pipelines and then it is washed with water for 10 minutes. 2. After this Lye (NaOH) is circulated in the tank or lines for 15 minutes. 3. Again tanker is washed with water for 10 minutes. 4. Then nitric acid (HNO3) is circulated in the tank for 15 minutes. 5. Again tanker is washed with hot water for 10 minutes. 6. Water is again circulated for 10 minutes in case of ATS tanks.

Warehouses Warehouse is under the supply chain department. All the products after packing are transferred to the warehouse from they are loaded on the vehicles and transported to the market. It purposes is to generate. 1. Daily stock report 2. Release report 3. Order sheet 4. Loading slip. 5. Dispatch report

WASTE WATER TREATMENT PLANT Effluent water from all over the plant, either process or washing or CIP drain is collected in reception sump at the wastewater treatment plant. From sump water overflows to the fat trap, here water is allowed to settle for about 4 –5 hours and by fat skimmer floating fat is removed and stored in fat pit. From where fat is sold to contractors for use is soap manufacturing.

Remaining fat removed water is sent to extra sump and then pumps to balancing tank. From balancing tank water is pumped to compact treatment plant (CTP).

COMPACT TREATMENT PLANT: CTP is a circular tank having two portions, inner shell and outer shell. It is 20 feet high and made of concrete. Inner shell is settling tank and outer shell is aeration unit in aeration unit, air is bowed from bottom, which activate the bacteria. This activated bacterium converts the remaining fat into sludge. From outer shell water goes to inner shell by gravity though a pipe present at the bottom of the shell. In the inner shell an agitator is provided, which agitate the whole water in a very slow speed. Algae produced come to float and removed by this agitator blade and passed to algae tank and then drained. Remaining water continuously drained after checking its pH, OIL and GREASES and temperature after regular interval of time. Sludge settled is revered to outer shell by airlift pump and is called activated sludge, which help to activate the bacteria. When enough activated sludge settles in outer shell it is removed, soled and used as a fertilizer form. (Annexure 22) Company Departmental Functions As we are living in the dynamic world and in this rapidly changing environment, customer taste in also changing so right decision at a right time is always needed in order

to perform effectively and keep the organization top of their desires. Output of one department will be the input of other department, so every department should work timely in order to keep the customer long with their company offering otherwise customer will switch or move to competitor products. During my internship I visit number of department and learn how they are working. Quality Assurance Department Quality assurance department play a very important role in any production concern organization because the organization are dependent on them no other department can do any thing if the product is not made according to customer demand or the standard the Organization maintains. During my visit in quality assurance department I noticed they start working as the milk comes in HFL production plant. Their first job is to take sample of the raw milk and check the suitability of milk either the milk is able to proceed further or not suitable for production and if the sample passes, they start measuring those standard they are following and till the final packaging of the product will be done, they again go for the tests either the product is suitable to ship and send in the market or not suitable.

Research And Development Research and development department also play as very major role in a organization, although they are directed from the marketing department because marketing department

inform themselves that their any one existing product (juices) are not selling well so then research and development department start working and they will go for certain test, competitor test analysis, is due to season demand get down, is due to old packaging design customer start ignoring the product or might some reason will lead to demand of the product and company sale get down. And if the marketing department want to develop a new product (NPD) then they should also communicate with the research and development department and with a formal meeting on which head of marketing department and the head of research and development department talk and check the product suitability either the product is able to launch, is their restriction from the government or might be our religion not support due to the nature of product. Even the head of marketing department also responsible to mention either the product will be for boy or girls, type of packaging they want for the product. Production Department Production is the functional area responsible for turning input into outputs through a series of production processes, and the production manager is responsible for making sure that raw material are provided and made into finished goods effectively. He/ she must make sure that work is carried out smoothly, and must supervise procedures for making work more efficient and more enjoyable. During my visit I noticed certain function the production department performed: First as any shift in-charge take his control they review the on-going production, how much it done and how much needed in order to meet the order. So they keep the process till the orders get completed. They had to continuously communicate with the employees handling machinery and other packaging equipment, with the quality assurance

department either the goods are according to the standards otherwise they go for certain tests to make the product according to the standards. And if they get any new order or demand from their representative production manger which they get from the marketing department or from the sales department they go for to check the availability of the raw material they need in order to fulfill the order. And then they precede the order to the sub ordinate to make themselves prepare for the production of new order. And after the order get done they handle the stock to warehouse department and get a slip in return as a prove that they dispatch how much stock to ware house department so there the main responsibility of the production department get done, and this process is on going till the company exist. A part of those activities they had also to take care of employees. Those employees are working properly according to company policy. And if the employee need any leave due to some reason they had to manage other person should be present their in the absence of that particular person, and the production run smoothly and effectively. Marketing Department Marketing department of any production concern organizations, work likes a heart of a human body. The Marketing Department is a unit of organization, traditionally charged with carrying out specific tasks that are deemed to be "marketing" (such as advertising, market research). During my visit I noticed certain activities they performed in order to keep the customer satisfied and long with Haleeb Foods Limited. First as the take a charge they review the last day sale by reviewing the sales report and if any deal is going on regarding packaging, distribution or any concern they talked with the representative person, they talked with the distributors to know the current market demand for their products. For the existing product they always go for to check the availability of the product in the market

because for the repeat purchase product should be present there otherwise their might be a chance customer will not go to another shop and purchase competitor product, after certain period of time they go for certain surveys, trial in order to know the customer attitude regarding the specific product and for those products are not selling well they use “Win Battle Technique” Detail about Win Battle Technique “In this technique, they look at those products are not selling well or not getting much fame in the mind of consumer. So they pin point the gaps and then applied certain strategies in order to cope with the problem the product is facing”. They had to do own self negotiation with the advertisings agency in order to get contract with them and place a billboard or any promotion campaign there they want to place. Red Communication Arts 15-08-2006 Haleeb Foods Limited has hired red communication arts as their new advertising agency, which will be handling the following accounts: 1. BAVERAGES: Haleeb Good-Day, Haleeb Funday, Tropico, Tropico nectar, Candia, Candy up, Haleeb Labban 2. Corporate Account. Haleeb food’s Special Campaign 15-08-06 Haleeb foods have launched a special campaign on the 59th anniversary of Pakistan to celebrate the auspicious event with true spirit towards the country along with its people. NPD Brief;

If the department wants to launch a new product in the market, they had to communicate through a formal meeting with a research and development department head and head of production department. If the general manger of marketing department accept or OK the concept they follow the idea to Research & Development department and the production department and they make a product name as PROTO TYPE PRODUCT which they follow to the marketing department and if the department face some problem while testing the product they tell to the production department about the problem they face while testing and then the production department will again start work on it and in a result present a product name as “RENEWED PRODUCT” and send them again to the marketing department for another PRODUCT TEST and after OK they launch a product and go for POST MEDIA ANALYSIS either which medium should company use in order to communicate with the consumer after that the company measure the results and go for CAMPAIGN TWEAK and in the last they made a decision for RE-LAUNCH/ FOLLOW U. Every Department Function They had to report to the finance department for (AOP) yearly, so they manipulate and sort out the upcoming budge; they will have to spend either to increase the production limit, how more human resource need, machinery, hardware and software due to increase in demand in future, so it will also lead to calculate the ratio of profitability. News & Updates Red Communication Arts 15-08-2006 Haleeb Foods Limited has hired red communication arts as their new advertising agency, which will be handling the following accounts: 1. BAVERAGES: Haleeb Good-Day, Haleeb Funday, Tropico, Tropico nectar, Candia, Candy up, Haleeb Labban 2. Corporate Account.

Haleeb food’s Special Campaign 15-08-06 Haleeb foods have launched a special campaign on the 59th anniversary of Pakistan to celebrate the auspicious event with true spirit towards the country along with its people. DuPont Pakistan Launches First Aseptic Liquid Packaging System April 17, 2006 DuPont recently installed the Pakistan first aseptic liquid packaging machine at Haleeb Foods Pakistan. Haleeb UHT milk in new packaging being supplied by DuPont liquid packaging system (DLPS).

SWOT Analysis of Industry Strength of Product: i.

Traditionally healthy image of milk

ii.

Versatile, high quality product which can be used in/for a wide variety of foodstuffs

Excellent environment/capacity for milk production: i.

Good climate

ii.

Industry support infrastructure.

Market: 1Consumer confidence in integrity and safety of dairy products Weakness i.

Increasing seasonal production pattern.

ii.

Shortage of skilled workers.

iii.

Limited connection between producer and market.

iv.

Limited producer perception of consumer concern.

v.

Many farmers do not know the true cost of production.

vi.

Environmental pollution-diffuse water pollution.

vii.

Lack of investment is processing sectors.

viii.

Low levels of innovation.

ix.

Lack of branding.

Opportunities i.

New technologies in production.

ii.

Animal genetics.

iii.

Increasing consumer awareness of need for healthy eating.

iv.

Greater demand to know origin of food.

v.

Joint venture with existing companies.

Threats i.

Animal disease outbreak.

ii.

Persistent animal health problem.

iii.

Investment risk. SWOT Analysis of PAKISTAN Dairy Industry

Strengths: i.

Endowed with very good breeds of buffalo and cows

ii.

Highest per capita consumption of milk in Asia

iii.

Regular culling of less productive/unproductive animals

iv.

A high ratio of agricultural land to agricultural population

v.

And emergence of commercial dairy farms on a large scale.

Weaknesses: i.

Small and scattered animal holdings

ii.

Prevalence of traditional raw milk marketing systems

iii.

Poor quality of milk; lack of remunerative producer price for milk

iv.

Milk processing predominantly dependent on obsolete UHT technology

v.

Mushrooming growth of cattle colonies in suburban areas; high cost of milk.

vi.

Production; a long chain of middlemen

vii.

Inadequate infrastructural and institutional facilities and support

viii.

Low utilization of installed capacity of dairy plants

ix.

Poor quality of animal health care and breeding services; lack of professional management

x.

Lack of a well-defined national policy for dairy development.

Opportunities: i.

Huge unsatisfied domestic demand for milk and milk products.

ii.

And substantial scope for increasing domestic milk production through improvement in the marketing system and by ensuring a year-round remunerative price to milk producers.

Threats: i.

Unregulated imports of dairy products at cheap prices.

ii.

Inadequate public and private investment in modernization of the sector.

iii.

And vested interests in perpetuating the dependence on imports of dairy commodities. SWOT Analysis of the Company

Strength: I. National brand. II. High Market Share. III. Getting international contracts. IV. Company seeks continuous improvement. V. Big product range. Weakness:

I. Weak distribution networks as compared to their competitors. II. Communication gap. III. Slow promotional activities, campaign as compared to their competitors. Opportunities: I. Range of coming NPD (Haleeb condensed milk, Haleeb evaporated milk, Haleeb cheese). II. Getting international contracts with England, Middle East, and Holland, Afghanistan. III. More market share in liquid form milk category (56%). Threats: I. New entrants. II. Resignations of their well-experienced staff due to good package competitor are offering. III. Not caring their existing SBU rather focusing more on their up-coming NPD.

Appendixes Organizational chart Annexure 1

HFL

QAD

R&D

PRODUCTION

MARKETING

MPD

IMPORT&EXPORT

CUSTOMER COMPLAINTS

FINANCE/ACCOUNTING

HUMAN RESOURCE

ADMINISTRATION

TECHNICAL

PERSONNEL DEPARTMENT

SUPPLY CHAIN

SALES

World Milk Production Annexure 2

Projected Milk Growth In Developing Countries By 2030

Annexure 3

World Milk Production by Type of Milk Annexure 4 Thousand million litres

As a percentage

Cow milk Buffalo milk Goat milk Sheep milk Other Total

494.6 69.1 12.5 7.8 1.3 585.3

84.6% 11.8% 2.1% 1.3% 0.2% 100

Milk Production by Region Annexure 5

Milk Production by Type and Region in Pakistan

Annexure 6

Year Wise Milk Production in Pakistan Annexure 7 Fiscal Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98

Milk Production (000) tonnes 15,481 16,280 17,127 18,006 18,986 22,970 23,580 24,215

Fiscal Year 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

Milk Production (000) tonnes 24,876 25,566 26,284 27,031 27,811 28,624 29,438 31,294

Processor Capacity of Various Milk Processing Companies

Annexure 8 Processors Nestle HFL Millac Vita Halla Prime Nurpur Nirala Dairy Crest *Engro K&K Butt Dairies Munno Dairies Khi Dairies Military Dairy Farms Total

Capacity (Million liters) 1.3 0.9 0.3 0.05 0.15 0.1 0.15 1 0.15 0.35 .04 0.04 0.06 0.1 0.18 5.21

Capacity utilization Flush Lean 1.3 0.78 0.9 0.54 0.3 0.18 0.03 0.018 0.15 0.09 0.1 0.06 0.15 0.09 0.1 0.06 0.15 0.09 0 0 0 0 0.06 0.036 0.02 0.012 0 0 0.18 0.105 3.44 2.064

Average monthly 1.04 0.72 0.24 0.024 0.12 0.08 0.12 0.08 0.12 0 0 0.048 0.016 0 0.144 2.752

Milk Shares and Price for Type Milk Annexure 9 Processed/Raw

Type of Milk

Market Share in

Sale/Price

Processed Milk

UHT Tetra Pack UHT Poly Pack Open pasteurized milk sold at milk shops Pasteurized pouch Open milk sold at milk shops Open gawala milk Direct to home

Volume 4.98% 0.02% 3.76% 0.24% 0.98% 90% 0.02%

Rs./Litre 32 22 14-15 20 18 12-14 15-18

Raw/Unprocessed Milk

Consumption Estimates for 1999-2000 Annexure 10

Product

(× 103 t)

Fresh milk

1006

UHT* milk

69

Butter

60

Ghee

177.04

Other dairy products

82.5

Demand for Milk In 2010 Annexure 11

Products

(× 103 t)

Fresh and boiled milk

25,604

Dry and condensed milk

68

Butter

165

Ghee

327

Total (fresh milk equivalent)

36,900

Collection Of Milk Annexure 12

FARMER

DODHIES

VILLAGE MILK COLLECTOR

MINI CONTRACTO R

SUB CENTER

MAIN CENTER

BIG SUPPLIER

HALEEB FOODS LTD

HFL Collection Area

Annexure 13

Sr. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

Milk Collection Zones Arifwala Bahawalnagar Bahawalpur Bhowana Mian Channu Haveli Jhang Pakpattan Okara Rahim Yar Khan Shah Jewna Narowal Upper Sind Lower Sind

JUICES

RAW MILK

SEPARATION CLARIFICATION

SKIMMED MILK

EVAPORATION

PASTEURIZATION

DRYING

BLENDING

CREAM

PASTEURIZATION

UHT

UHT

BUTTER

BACING FILLING BOTTLES

FILLING TETRAPACK

FILLING TETRAPACK

POST STERLIZATION

TRAYPACKING

TRAY PACKING

LABELING

GHEE

FILLING CARTONING

CARTONING

Layout Scheme Of Production

WRAPPING

Annexure 14 UHT Treatment Plant Annexure 15

Milk testing Milk collection

Milk Reception

Weighing & Storage Milk Testing

U.H.T “Candia” Aseptic Filling

Bottle Plant

Standardization

Pasteurization

PLE

Warehouse

Post sterilization

Labeling

Milk

Flow Diagram of Butter Annexure 16

Pasteurized Cream (4 – 6c) Churning Action Buttermilk Separation Butter Washing Trolleys Cold Storage (3 – 4c)

Flow Diagram Of UHT Cream Annexure 17

Milk

Separator

Balance Tank

Regeneration No 1

Regeneration No 2

Heating Section

Chilling (less than 10c) Standardization

UHT FLOW DIAGRAM FOR TROPICO FRUITS DRINK Packing Annexure 18

Reception of raw material

Mixing of ingredients

Batch standardization

Pasteurization Distribution Aseptic Tray Warehouse packing filling

Flow Diagram Of Good Day Juice Annexure 19

Reception of raw material

Mixing of ingredients

Batch standardization

Pasteurization Aseptic Tray Distribution Warehouse packing filling

FLOW OF PLE Annexure 20 Final pack

Conveyer

Tray packing

Trays

Shrink-wrap

Poly Film

Stacking Warehousing Dispatch Unloading / loading storage at to At Trucks ambient Distribution for distribution temperature

Aseptic Filling

Annexure 21

Paper Loading

Strip applicator

H2O2

Hot H2O2 Application & Evaporation

Removal of poly

Paper reel storage

Unloading From trucks H2O2 Discarded

Storag

Sealing

Final folder Final shape of pack

PLE

Compact Treatment Plant Annexure 22

Filling

De shaped Pack

Breaking

Wastewater Treatment

Waste Water Primary setting

Fat Trap

Extra Sump

Balancing Tank

RECOMMENDATIONS During my stay I made some observation, which are reducing profit and consuming company assets and are creating barriers in company progress, either directly or by distributing working staff. I wish to analyze that. These are as under:

1. Observing strict control of process parameters can minimize losses of finished products, proper handling of packed products, proper storage, and strict laboratory checking and control. 2. May a major problem in recycling of products; it is largely due to low weight, loose packing, or improper packing. 3. Automatic machine should install here which not only works continuously but also has greater efficiency. 4. For emergency help and treatment, it is better to maintain a dispensary in factory premises and higher a doctor, either full time or part time. 5. Better communication enhances the work efficiency and lead to work done at a right time. 6. Mainly focus on their existing (SBU) rather putting more effort on coming (NPD).

Bibliography Mr.Atif Iqbal, “Production of UHT milk, Cream, Yogurt, Labban, Ghee, Juices, Candia”. (13 September 2006)

Mr.Arshad Bhatti, “R & D Department Function”. (20 September 2006) Mrs.Qudsia Bano, “Quality Policy”. (20 September 2006) Profile of the company [cited 22 September 2006] http://www.haleebfoods.com/haleeb/QS_company_profile.php Market share of Haleeb foods limited [cited 03 October 2006] www.pakistan.gov.pk/divisions/industriesandproduction-division/media/SectorsFile.pdf Format of bibliography [14 November 2006] http://www.google.com.pk/format/bibliography

Conclusion In the end, I would to conclude my report by saying that Haleeb Foods Limited is considered to be No 1 Pakistan packages growing Food Company having a long product range which makes them different from their competitor and achieved an appreciation to be as “First Mover” and recently contracted with DuPont liquid packaging industry

shows that they are not dependent on only one packaging industry. And there is a great scope for establishing an efficient milk collection system and refrigeration and transportation facilities. This will offers opportunities to other foreign investors to establish a joint venture for the production of dairy products, particularly dried milk and infant formula milk for which great demand exists in the neighboring countries like Iran, UAE, and Saudi Arabia.