Original Saras Final Report Smita Choudhary

Final Report “A study of performance and growth of Saras Dairy, Alwar [AZDUSS Ltd.]”

Batch 2006 – 08 A Report Submitted in Partial Fulfillment of the Requirement of MBA Program of ICFAI National College

Saras Dairy, Alwar (ISO 9001-2000 and HACCP Certified) (Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar) Jaipur Road, Alwar-301001 Ph: (0144) - 2702644, 2701010

Submitted to: Mr. Sandeep Kumar Kautish (Faculty Guide) Mr. Amit Bhattacharya (Company Guide)

Submitted by: Smita Choudhary (III Semester) 6ND11765 ICFAI National College, Alwar On 07th July 2007

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TABLE OF CONTENTS Acknowledgement.................................................................3 Declaration ............................................................................4 Preface....................................................................................5 Abbreviations.........................................................................6 Introduction of Saras..............................................................7 From the MD’s Desk..............................................................10 Organization chart..................................................................12 Objectives..............................................................................13 Tasks......................................................................................14 Daily schedule............................................................15 Targets....................................................................................16 Strategy..................................................................................18 Analysis of performance v/s target........................................20 Departments of Saras dairy....................................................21 Problems/constraints/limitations............................................28 Learning in the executive training.........................................30 Registered DCS chart.................................................34 Milk product manufacture..........................................35 Milk procurement chart..............................................36 Liquid milk sale chart................................................37 Turn over chart...........................................................38 Price change of Saras products..................................39 Performance at glance................................................40 Milk supply of Alwar city..........................................41 SWOT analysis..........................................................42 Conclusions............................................................................43 Award/reward received..........................................................44 Bibliography..........................................................................45 Glossary.................................................................................46

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ACKNOWLEDGEMENT

I express my heartfelt thanks to Mr. J.R. Dhaka, Managing Director, AZDUSS Ltd. for his direction, help and motivation. I express my sincere thanks to Mr. Sandeep Kumar Kautish (Faculty Guide), Mr. Amit Bhattacharya (Company Guide, Plant Manager, Marketing, Saras Dairy, Alwar [AZDUSS Ltd., Alwar]), Mr. L.C. Balai (Deputy Manager, Marketing) and Mr. Anil Kumar Mathur (Deputy Manager, Administration) for their support and cooperation. They provided me their valuable help and guidance during the training period. I shall be highly indebted to the staff of the marketing department of Saras Dairy (AZDUSS Ltd., Alwar) for the moral support they extended to me during the SIP training. I also thank the booth/parlour owners and the respondents whom I surveyed for giving me their valuable time and fruitful suggestions.

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DECLARATION

I hereby declare that this project work entitled “A study of performance and growth of Saras Dairy, Alwar” is my work, carried out under the guidance of my Faculty Guide Mr. Sandeep Kumar Kautish and my Company Guide Mr. Amit Bhattacharya. This report neither full nor in part has ever been submitted for award of any other degree.

Smita Choudhary (MBA III Semester) 6ND11765 ICFAI National College Alwar

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PREFACE Marketing is one of the most important functions in business. It is the discipline required to understand customers' needs and the benefits they seek. No study can be termed complete if there is no practical experience. Hence need for training has become a real necessity. The training aims to prepare students through a process of practical experience. Practical exposure no doubt has contributed a significant amount of knowledge to me along with real life experience and was an ideal combination of academic knowledge and practical experience. Marketing activities can be regarded as lifeblood of all business concerns. In order to enhance the performance of marketing department and overall success of a business concern, study of consumer behavior and their satisfaction, sales and distribution channels, advertisement and competitive advantages is necessary. The performance of a company is very much important for an organization. Saras Dairy, Alwar is in fact a very ideal location to gain practical experience. I am sure the experience gained in short duration, will go a long way in all my future endeavors.

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ABBREVIATIONS 1. AZDUSS..........................Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar 2. DCS..................................District Cooperative Societies 3. FGS..................................Finished Goods Supply 4. FMP..................................Fresh Milk Products 5. HACCP............................Hazard Analysis Critical Control Points 6. ISO...................................International Standard Organization 7. OJT...................................On Job Training 8. SIP....................................Summer Internship Program 9. SKM.................................Skimmed Milk Powder 10. WMP................................Whole Milk Powder

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INTRODUCTION OF SARAS (AZDUSS LTD.) Alwar Dairy is a dairy registered under Rajasthan cooperative act and is owned by thousands of its milk producers members. It works on world famous Amul pattern. As all other cooperative dairies, Alwar Dairy is a part of three tier structure i.e. Dairy cooperative society at village level which form district level milk producer unions which are further federated in state level federation. All three entities are autonomous and linked to each other by provisions of their bye laws. Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar (AZDUSS Ltd., Alwar) is a cooperative organization registered under Cooperative Act with Registrar of Cooperative, Government of Rajasthan. It was established in the year 1972 to implement dairy development activities in the Alwar district, under Operation Flood Program. Chairman Managing Director Establishment year in Alwar Employees Certifications No. of registered Cooperative Societies Products

Mr. Ram Phal Gurjar Mr. J.R. Dhaka 1972 Permanent employees 197 Contract labor 150 ISO 9001-2000 IS 15000 (HACCP Food Safety Management System) 795

New product

Full cream milk, toned milk, double toned milk, skim milk, dahi, paneer, ghee, chhach, lassi, shrikhand Ice-cream and softy to be launched soon

Address Telephone Fax E-Mail Turn Over (2006-07)

Jaipur Road, Alwar 301001 [Rajasthan] (0144)-2702644(Customer care), 2701010, 2333926 (0144)-2342925 [email protected] 99.15 Crore

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UNDERSTANDING ISO-9001-2000 AND HACCP Introduction Adoption of ISO-9000 and HACCP standards for an organization are order of the day and need of the time to be on competitive edge in the Food Industry. It demonstrates the ability of dairies of Rajasthan Co-operative Dairy Federation to satisfy the needs of its customers and interested parties. Today, almost all the major unions of R.C.D.F. are certified under ISO 9001-2000 and HACCP, integrated quality and food safety management systems. Nevertheless, understanding of the concepts of ISO 9001-2000 and HACCP is confined to small section of top/middle management employees. Therefore, an effort is being made through this article in a precise and simplified manner to explain the basic concepts of ISO 9001-2000 and HACCP standards, which will surely help in better understanding of these standards among the rank and file of the organization.

HACCP HACCP is a food safety management system and has its origin in U.S. manned space programme to ensure food safety to the astronauts in late 1960s. The standard designed to keep food safe in outer space has now become a standard on the earth. What is HACCP:A system, which identifies, evaluates and controls hazards, which are significant for food safety. H- Hazard A- Analysis C- Critical C- Control P- Points

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Milk products of Saras dairy, Alwar Types of milk Product

Name

Price

Gold

Packing Color Red

Full cream milk Toned milk

Taaza

Double toned Smart milk Skim milk Lite

SNF content 9.0%

Packing

Rs.23/litre

FAT content 6.0%

Blue

Rs.19/litre

3.0%

8.5%

½ and 1 litre

Yellow

Rs.17/litre

1.5%

9.0%

½ and 1 litre

Purple

Rs.15/litre

0.5%

8.5%

½ and 1 litre

Fresh Milk Products of Saras dairy, Alwar Product

Packing

Price

Chhach plain

500 ml

Rs.7

Chhach Namkeen

250 ml

Rs.6

Lassi

250 ml

Rs.7

Paneer

200 gm and 1 kg

Rs.25 and Rs.120

Ghee Dahi Shrikhand plain Shrikhand Kesar Pista

½ litre and 1 litre 200 gm cup 100 gm cup 100 gm cup

Rs.85 and Rs.170 Rs.8 Rs.8 Rs.9

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½ and 1 litre

From the Managing Director’s Desk: The Managing Director of AZDUSS Ltd., Alwar is Mr. J.R. Dhaka. His future plans and strategies for the betterment of the organization are:

“To provide better milk procurement price along with technical input service to member producers & to procure maximum milk and to provide safe & good quality milk and milk products at competitive price to consumer. Thrust will be for better financial health of milk union”

Interview of the Managing Director of AZDUSS Ltd., Alwar

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I interviewed the Managing Director of the organization Mr. J.R. Dhaka on 22nd April 2007. Here are the excerpts from the interview. Question 1: Do you inspect the plant regularly? Answer: Yes, I inspect the plant daily. Question 2: What do you observe while inspecting the plant and the office? Answer: House keeping, hygienic condition, people are at work place. Question 3: What is the cooperation level of your employees? Answer: Cooperative Question 4: What are your future plans and strategies? Answer: Strengthening milk procurement and milk marketing. Question 5: What are the promotional activities you conduct to promote your products? Answer: Mouth publicity, awareness programmes. Question 6: Do you organize events or seminars for your customers to make them aware about your products? Answer: Yes Question 7: Do you conduct staff meeting for smooth working and better coordination? Answer: Yes. Question 8: Does any conflict arise between your staff members? If yes, what do you do to resolve the conflict? Answer: Conducting joint meeting. Question 9: Do you provide training to your staff? Answer: Yes Question 10: What measures do you take to ensure smooth functioning of the organization? Answer: Discipline, timely payment and personal benefits of staff. Question 11: Who is responsible for setting prices of Saras products? Answer: R.C.D.F., state body and milk union.

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Objectives I joined Saras Dairy, Alwar (AZDUSS Ltd., Alwar) as an intern on 19th March 2007. I am working in the Marketing Department of Saras. The objectives of the Executive Training at Saras Dairy (AZDUSS Ltd., Alwar) are: 1) To identify the working of the organization. 2) To conduct an exhaustive analysis of the marketing department. 3) To increase the sales of the products that are prepared and marketed by the organization. 4) To conduct an extensive study of the market place and the customer’s needs. 5) To understand the core business of the company, organization chart, key personnel in the company, manufacturing units, marketing channels, financial policies, etc. 6) To do a comprehensive analysis of the company and prepare the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis report for the company. 7) To build a good rapport with the company’s staff. 8) To understand the organizational structure and the top management team including the Chairman, Managing Director and the Officers. 9) To do a practical and live observation of the work place. 10) To understand the attitudes and behavior of the customers.

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Tasks The tasks specified by the SIP Company (AZDUSS Ltd., Alwar) are: 1) To conduct a comparative study of the growth of Saras (AZDUSS Ltd., Alwar) for three consecutive years. 2) To conduct survey of Saras parlours and booths to know their problems and sort them out. To get feedback from Saras parlours and booths. 3) To get feedback from customers and find their problems, satisfaction level, take their suggestions and help AZDUSS Ltd., Alwar to implement those suggestions. 4) To take responses from people who do not use Saras products and find the answer to the question, “Why they are not using Saras products”. 5) To judge the satisfaction level of the employees of AZDUSS Ltd., Alwar. 6) To do entries of daily supply in the supply register. 7) To take demand of various Saras products from parlour/booth owners and distributors through phone or personal contact in the prescribed proforma. 8) I was given the responsibility to guide 36 MBA students (working as interns in Saras Dairy, Alwar) and assign them their tasks and duties on a weekly basis.

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My Daily Schedule My tasks at the On Job Training are to study the working of the Saras plant, gather complete information about Saras, conduct market and booth surveys and organize visits for people to see the Saras plant. The daily schedule that I follow to complete these tasks is:  Sign in at the company office at 09:30 AM  Make a plan for the whole day between 09:30 AM to 10:30 AM.  Go to the field to conduct market survey and booth survey from 10:30 AM to 12:30 PM.  Collect information about the Saras dairy from various departments from 12:30 PM to 01:30 PM.  Lunch time is from 01:30 PM to 02:30 PM.  Organize visits for the visitors from 02:30 PM to 03:30 PM.  Visit the plant to understand the working of the plant from 03:30 PM to 04:30 PM.  Discuss with my company guide the tasks for the next day from 04:30 PM to 05:00 PM.  Sign out of the company office at 05:00 PM. Note: 1. Every Saturday I go to Jaipur to submit my weekly report and attend the session organized by ICFAI National College, Jaipur for student development. 2. Sunday is weekly off.

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Targets “Target is defined as goal which has to be fulfilled and sounds compulsiveness.” Without setting target it is difficult for anybody to achieve his/her objectives. The targets that were set for me during the training are: 1) To make maximum people aware of Saras. 2) To organize free testing camps to test the purity of milk. 3) To increase the sale of Saras products. 4) To implement human resource management techniques to increase the satisfaction level of the employees of AZDUSS Ltd., Alwar. 5) To interview 500 homes to know their views and opinions about Saras products. 6) To organize plant visit for 250 people to show them the plant and tell them the processes that the Saras milk undergoes and how different Saras products are prepared. The purpose of organizing such visits is to tell the people about the many advantages that Saras offers them like a. Hygienic plant b. High nutritional value of its products c. Easy availability d. Good storage facilities

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During the course of my training at Saras dairy (AZDUSS Ltd., Alwar) I was assigned many tasks and targets. In this section I present the targets and tasks in a tabular form.

Targets and Tasks Assigned to me S.No.

Targets/Tasks

Date

1.

To conduct Survey of 500 people

19th March 2007 to 04th July 2007

2.

To organize plant visit for 250 people

19th March 2007 to 30th June 2007

3.

To survey 9 parlours and 210 booths

08th April 2007 to 18th June 2007

4.

To interview people of the marketing department To take demand from various stations

23rd April 2007 to 27th April 2007

6.

Completed initial report, synopsis interim report, management thesis and final report.

7.

Collected secondary data from various departments Interviewed the Managing Director of the organization Participated in milk testing camp organized monthly I was given the responsibility to guide 36 MBA Students.

Initial Report 31st March 2007 Synopsis 07th April 2007 Interim Report 12th May 2007 Management thesis 05th July 2007 Final report 06th July 2007 Got information about milk procurement, Liquid milk sale, turn over 22nd April 2007

5.

8. 9. 10.

Final Report

13th May 2007 to 04th July 2007

20th March 2007 to 25th March 2007 15th May 2007 to 04th July 2007

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Strategy A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate strategies, corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of micro environmental factors.

Survey Research A survey research is defined as the method of collecting information by asking a set of pre formulated questions in a predetermined sequence in a structured questionnaire to a sample of individuals drawn so as to be representative of a defined population. These questionnaires are administered to an individual or a group of individuals through interviews. Typical survey objectives involve describing or learning from an ongoing activity by studying the changes in behavioral patterns of the subjects of interest to the researcher.

Method of survey research used by me: Personal Interview(Door to Door interview)

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Questionnaire Design A questionnaire is a set of questions to be asked from respondents in an interview, with appropriate instructions indicating which questions are to be asked, and in what order. Questionnaires are used in various fields of research like survey research and experimental design. Questionnaire design is a vital issue in interviewing. A properly designed questionnaire can tap the necessary information from the respondent. Therefore, researchers always design a tactful set of questions to probe and prompt the interviewee to give useful answers. Questionnaires fall under various categories, such as structured, unstructured, disguised and undisguised. In the questionnaire I have used two types of questions: Open Ended Questions In open ended question design each question has a series of lines (or a blank space) in which the respondents are encouraged to write, in their own words, how they feel about the topic in question. Close Ended Questions Closed question provide a set of answers that the designer of the survey (based on prior experience and responses in the pilot survey) considers will accommodate the majority of potential responses. The strategies and plans adopted during the training period to complete the assigned tasks are: 1) The satisfaction level of employees of AZDUSS Ltd., Alwar was judged through a well planned questionnaire. The questionnaire consisted of many questions covering nearly all aspects required to judge the satisfaction level of employees. 2) The feedback from customers and general public was taken with the help of a well designed questionnaire consisting of questions that nearly covered every aspect of testing customer satisfaction.

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ANALYSIS OF PERFORMANCE VS. TARGET I started my SIP training at Saras dairy (AZDUSS Ltd., Alwar) on 19th March 2007. I was given the responsibility of surveying 210 booths, 9 parlours, 500 people and organize plant visit for 250 people. I was asked to increase awareness about Saras products amongst the general public by organizing plant visits for them. For this I organized plant visit for many people and also mass visits for Another task assigned to me was to be a part of the milk testing camps organized by the marketing department of Saras (AZDUSS Ltd., Alwar). For this we went to various locations of Alwar city and tested the milk samples brought by the general public. We provided them instant results and explained them the advantages of using Saras products. Many of them were convinced that Saras products are better as compared to the products provided by local vendors. This has increased the sale of Saras products, specially milk.

S.No.

Factor

Target

Performance

Variance

1.

Plant visits

250

250

Nil

-

2.

Door to door surveys

500

500

Nil

-

3.

Booth surveys

210

205

5

4.

Parlour surveys

9

9

Nil

5.

Training to M.B.A. 36 students Participation in free 6 days milk testing camp camp

36

Nil

Full attendance

Nil

6.

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Reason

Due to lack of time -

DEPARTMENTS OF SARAS DAIRY (AZDUSS LTD., ALWAR) Marketing Department According to Peter Drucker, “The aim of marketing is to make selling superfluous.” Marketing department is one the most important department in every organization. The marketing activities of the organization include providing support to the milk unions within and outside the state. The marketing department conducts various surveys to know the needs and expectations of the customers. Marketing department is responsible for the sale of liquid milk. It decides the routes by which the milk is supplied as well as decides the number of booths in district and up country. It also appoints distributors for supply of milk from dairy plant to different areas of district and up country market. Presently in Alwar city there are 315 working booths and 10 parlours. AZDUSS Ltd., Alwar is also marketing various fresh milk products in Saras brand like chhach, lassi, paneer, shrikhand, dahi and long life products such as ghee, skim milk powder and whole milk powder. Various sales promotion techniques are used by marketing department to increase the sale of Saras products like        

Incentive schemes to dealers Consultancy and hiring of marketing agency Hoardings Glow sign board Gift hampers Banners Advertisement through local cable Wall paintings

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Human Resource Department Human resource is the most valuable asset for any organization. A human resource manager is responsible to build up an effective workforce, handle the expectations of the employees and make sure that they perform at their best. In management human resource management deals with people. Each and every organization consists of people and an organization has to utilize their services, develop their skills, motivate them, and make sure that they remain committed towards the organization to achieve the goals of the organization. According to Byars and Rue “Human Resource Management encompasses those activities designed to provide for and coordinate the Human resources of an Organization.” The human resource department manages the personnel serving the organization. The Human Resource Department performs the following functions: • • • • • • • • • • • • • • • • • • • •

Creation of posts and appointments. Verification of character and antecedents Pay of appointment Age limits Commencement of service Probation of appointments Certificate of health Record of age Consequence of particulars being false or suppressed Relinquishment of services by employees and discharge of probationers Termination of service of confirmed employee Superannuating and retirement Option to retire in certain cases Requirement of medical examination Retirement on medical grounds Date of retirement Privilege leave on retirement and encashment Postponement of retirement pending disciplinary action Voluntary retirement Abandoning duty after period of leave or otherwise

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• • • • • • • • • • • • • • • • • • •

Appointment of experts Scale of pay Calculation of joining time Overstay after joining time Deputation of employees Special appointments Entry, exits and search Identification, attendance and entry Provident fund Gratuity Leave Tours and traveling allowances Transfers Tours abroad Conveyance facilities Service record Address for communication Recall from leave Shift working

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Operations Department The operations department defines the working of the organization. Processes: The steps for preparation of various products are as follows: Process of making Ghee

Pasteurizer Cream Separator (To separate cream from milk)

Cream Tank (To collect the cream)

Butter Churn (Where the cream is churned to make butter)

Melting Vat (The butter is melted in Melting Vat)

Ghee Kettle (The melted butter boils in ghee kettle)

(This ghee is collected and stored in settling tank)

Packing Department (Where the ghee is packed in 1 litre and ½ litre packs)

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Plain Chhach: This is pasteurized milk which contains 3.1% fat and 8.6% SNF and acidity 1.08%. This milk is boiled at 40 degree celcius and 3% curd is added. It is diluted by 40% DTM. This is packed in 500 ml packets and supplied to the market for sale. Namkeen Chhach: In plain chhach various ingredients like 0.6% salt, 0.3% jeera, 0.15% rock salt and 0.1% pepper is added to make namkeen chhach and packed in 200 ml packets and supplied to the market for sale. Lassi: In plain chhach 12% sugar is added to make lassi and packed in 200 ml packets and supplied to the market for sale. Paneer Segment:

Milk from SILO

Paneer Vat (In this Vat the milk contains FAT 5.0% and SNF 9.0%.) The milk boils in paneer vat at 80 degree celcius and 2% citric acid is added in this milk to separate FAT, SNF and water

Paneer Hook (Then curded milk is pressed in paneer hooks for 45 minutes, then this paneer is put into chilled water at 5 degree celcius)

Packaging Department (Here the paneer is packed in 1 KG and 200 gm for sale)

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Facilities: Saras Dairy, Alwar (AZDUSS Ltd., Alwar) provided the following facilities during operations:1) 2) 3) 4) 5) 6)

Safety for workers Medical facility First aid facility State of the art technology is used Insurance cover for workers Fire extinguishers are installed in the plant

Finance Department Financial Management is defined as making available the required funds at an acceptable cost and making sure that the funds are suitably invested according to the plan. This task is performed by the Finance Manager of the organization. Capital Structure Theories The two sources of long term finance for a firm are 1) Equity Capital: - Equity capital is the owner’s own capital invested in the business. 2) Debt Capital: - Debt capital is the capital raised from other sources which is invested in business. Arrange finances through loans from ICICI and HDFC. Earlier loans were taken from Alwar Gramin Bank. Final accounts are maintained yearly. Daily transactions are maintained in one day business. Budget is prepared by the Accounts Department.

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Financial Ratio Analysis Ratio analysis is a widely used tool of financial analysis. It can be used to compare the risk and return relationship of a firm of different sizes. It is defined as the systematic use of ratio to interpret the financial statements so that the strengths and weaknesses of a firm as well as its historical performance and current financial condition can be determined. The term ratio refers to the numerical or quantitative relationship between two items/variables. Ratio analysis is a systematic use of ratios to interpret the performance and status of the firm. Current ratio: This ratio reveals the relationship between current assets and current liabilities. Current ratio = current assets / current liabilities Quick ratio/ acid test ratio: The acid test ratio is the ratio between quick current assets and current liabilities and is calculated by dividing the quick assets by the current liabilities. Quick ratio = Quick assets / current liabilities

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PROBLEMS/CONSTRAINTS/LIMITATIONS Any research in any field topic gives some new results, discovering new areas etc. but there are always some limitations thereof. The limitations that I came across during the course of my training at Saras (AZDUSS Ltd., Alwar) are: 

The data collected is totally dependent on respondents’ views, which could be bias in nature.



Sometimes respondents do not give a response or give partial response. It is called non response error. The reason may be lack of knowledge or unwillingness to answer.



The sample size is small and it may not actually represent the whole population.



During the survey I came across unfavorable weather conditions like scorching heat and dust storm.



There is limited time available each day and lot of tasks have to completed in a day like preparing reports, conducting surveys, spend time at the office to gain knowledge, etc.



The study was conducted in the urban areas and it cannot be applied to the rural areas because the tastes and preferences of people of rural and urban areas differ vastly.



The answers given by the respondents are not always correct and may be misleading.



It is very time consuming to go door to door in order to conduct a survey of various homes and find their views and study their buying behavior.



Sometimes it becomes very difficult to convince people as many of them are not at all aware of Saras products and some are very stubborn. It becomes slightly difficult to convince such people but it is a challenging task and a good learning experience.

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

Being a trainee, no confidential information about the organization is available. This sometimes became a hurdle during the training.

 In some cases the respondent is not present at home.  It is not possible and economically viable to recall respondents not present at home.  Sometimes the respondents are not educated. Personal interviews are successful only when the respondents are educated. The limitations that Saras Dairy comes across are: 1) Low availability of raw milk in summers. 2) Dependence on milk producers. 3) Dependence on monsoons. 4) Milk can be produced not manufactured. 5) Increasing competition in dairy industry.

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Learning in the Executive Training Each day is a new learning experience and so was the case during my Executive Training. Every day I learnt something new. During my training I learnt the following things: 1) First and foremost I learnt to practically apply the knowledge gained through theory classes and bridge the gap between academic institution and corporate world. 2) Understood the importance of job responsibility. 3) How coordination is maintained between different departments like marketing, human resource, administration. 4) Learnt the ways to increase milk procurement. 5) Understood the distribution network adopted by Saras. 6) Understood how the management keeps its employees satisfied and retain them. 7) The processes that the milk passes through before reaching the final consumers. 8) The processes by which various milk products like ghee, butter, dahi, paneer, chhach, lassi, shrikhand, etc. are prepared. 9) The marketing strategies adopted by Saras Dairy, Alwar (AZDUSS Ltd., Alwar). 10) Learnt how to conduct door to door interviews. Initially I felt slightly uncomfortable conducting the interviews but with time I learnt a lot and became very comfortable conducting door to door personal interviews. 11) Learnt to participate in milk testing camps and test the milk sample for purity. 12) Learnt to organize plant visit for visitors. 13) Learnt to take demand of Saras products from various stations through phone or personal contact in the prescribed proforma. 14) Learnt how to build a good rapport with the staff. I was very successful in building good rapport with the staff of the marketing department and other departments of the organization as well.

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I worked as an intern in Saras dairy (AZDUSS Ltd., Alwar) which processes and markets milk products which are quickly perishable. Therefore the marketing strategy of Saras is very different from others. In this type of organization it is necessary to maintain a balance between demand and supply and I learnt very well how to maintain a balance between demand and supply. During the four month association with Saras I deeply understood many facts about milk which were not in my knowledge earlier. Frequently Thought Questions Many times I used to think that what is milk? How is it useful for us? What are its constituents and many more? During my association with Saras I found answers to all my questions and queries. Question 1: What is milk? Answer: Milk is a lacteal secretion from the mammary glands of a healthy milky animal free from colostrum. Milk has got mainly three constituents – fat (3 to 6%), snf comprising of proteins, lactose, minerals etc (8 – 9%) and water (85%). Question 2: Is Saras milk prepared from powder? Due to the calving cycle, cow / buffalo remain in milk for 8-9 months in a year. The high yielding and low yielding period is different in case of cow or buffalo, but generally winters are called flush season due to high production of milk whereas summers are called lean season when production is less. On the other hand, the demand is almost constant through out the year. Hence during flush season, fat part of milk is preserved in form of white butter and snf in form of powder after evaporating water. These two constituents are mixed and processed during lean season to meet the demand. So powder is nothing but preserved snf / fat of milk.

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Question 3: How is milk useful for us? Milk is nature’s perfect food for all ages. It has almost all the vital nutrients needed for growth and well being of human body. Milk is the richest natural source of calcium and essential amino acids. It is good for bone formation. It is particularly beneficial for people recovering from sickness, for sportsmen, for old people, for pregnant women and for growing children. The doctor recommends a minimum daily intake of 250 ml. Or one and a half glass of milk for every person. Normal cow milk has 4%fat and buffalo milk 6% fat. There is another important constituent of milk- solids not fats these solids – not – fat. (or SNF, as it is commonly called) comprise of proteins, minerals, carbohydrates and vitamins. For milk to be nutritionally balanced, it has to contain both fat and solids- not- fat in right proportion. Question 4: Why pasteurized milk is better than vendor’s milk? Saras milk strictly conforms to PFA standards to comply with the legal requirement and to provide wholesome nutritive food to the consumers. This means when we are buying Saras milk, we are sure we are getting value for our money. We are sure of getting the “nature’s perfect food” full 500 ml, 100ml, in every pack. We are sure of getting milk which has longer life because of its superior bacteriological quality. The loose milk available from local vendors in Alwar city often does not conform to PFA standards. It has fat and less solid-notfat than required. If our milk contains 0.5% less fat or SNF, we are paying up to 60 paise per pouch extra. Besides, it is not uncommon to find artificial preservatives, not permitted by law being added to loose milk. This has been authenticated in a recent campaign run by this Sangh, in which it was found that more than 60% to 70% of milk sold by private traders and loose milk contain artificial preservatives, not permitted by law. By compromising on the quality of milk we may be depriving our children of essential life building proteins and nutrients that only pure, high quality milk offers.

Final Report

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“SO, INSIST ON SARAS MILK JUST !!!!!

BECAUSE ONLY SARAS MILK GIVES YOU

TRUE VALUE FOR YOUR MONEY.

IT IS PURE, FRESH, NUTRITIOUS, HYGIENIC AND CREAMY.”

Final Report

Page 35 of 48

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR REGISTERED DCS

900 800 700

NO.

600 500

Series1 Series2

400 300 200 100 0

2001-02

2002-03 2003-04

2004-05

2005-06 2006-07

Series1 Series2

497

532

609

681

YEAR

Final Report

Page 36 of 48

742

795

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR MILK PRODUCT MANUFACTURE

QTY. IN M.T.

1500 1000

GHEE SMP

500 0

WMP

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

GHEE

720

678

607

612

754

1162

SMP

207

132

12

243

399

1118

WMP

290

342

255

80

197.5

155

YEAR

Final Report

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ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR MILK PROCUREMENT

90

QTY. 000,Kgs

80 70 2001-02

60

2002-03

50

2003-04

40

2004-05 2005-06

30

2006-07

20 10 0 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 Series1

59.59

62.97

66.22

70.28

YEAR

Final Report

Page 38 of 48

76.93

82.66

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR LIQUID MILK SALE

000' LIT PER DAY

140 120 100

2002-03 2003-04

80

2004-05

60

2005-06

40

2006-07

20 0 Series1

2002-03 2003-04 2004-05 2005-06 2006-07 18.6

29.56

35.81 YEAR

Final Report

Page 39 of 48

67.03

132.69

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR TURN OVER

120 100

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Crore

80 60 40 20 0 Series1

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

53.6

59.57

93.77

96.33

95.8

99.15

Year

Final Report

Page 40 of 48

Table showing change in price of different Saras products Product

Price before 01st April 07

Price as on 07th April 07 and onwards

Price as on 01st May 07 and onwards

Price as on 01st July 07 and onwards

FCM (Gold)

Rs.20

Rs.21 per litre

Rs.22 per litre

Rs.23 per litre

Toned Milk (Taaza)

Rs.16

Rs.17 per litre

Rs.18 per litre

Rs.19 per litre

Double Toned Milk (Smart)

Rs.14

Rs.15 per litre

Rs.16 per litre

Rs.17 per litre

Skimmed Milk (Lite)

Rs.13

Rs.13 per litre

Rs.13 per litre

Rs.15 per litre

Ghee (1 litre)

Rs.160

Rs.165

Rs.170

Rs.170

Dahi (200 g)

Rs.6

Rs.7

Rs.8

Rs.8

Paneer (200 g)

Rs.20

Rs.22

Rs.25

Rs.25

Paneer (1 Kg)

Rs.100

Rs.110

Rs.120

Rs.120

Lassi (250 ml)

Rs.5

Rs.6

Rs.7

Rs.7

Chhach (Plain) 500 ml

Rs.6

Rs.7

Rs.7

Rs.7

Chhach (Namkeen) 250 ml

Rs.4

Rs.5

Rs.6

Rs.6

Shrikhand Plain (100 g)

Rs.7

Rs.7

Rs.8

Rs.8

Shrikhand Kesar Pista (100 g) Rs.8

Rs.8

Rs.9

Rs.9

Flavored Milk (200 ml)

Rs. 10

Rs.10

Rs.10

Final Report

Rs.10

Page 41 of 48

ALWAR ZILA DUGDH UTPADAK SAHAKARI SANGH LTD., ALWAR PERFORMANCE AT GLANCE S.No.

Particulars

01-02

02-03

03-04

04-05

05-06

06-07

1

Registered DCS

497

532

609

681

742

795

2

Functional DCS

368

442

465

564

599

632

3

Prop. DCS (CC)

366

388

454

451

462

443

4

DCS Membership

59588

62966

66217

70281

76931

82655

5

Milk Procurement (per day)

87.74

88.79

97.82

108.9

89.65

79.54

6

Rate / KG (Rs)

9.98

10.77

13.56

12.29

13.22

15.05

7

Milk payment (Rs.Lakhs)

3195

3491

4856

4884

4325

4370

8

City Supply (TLPD)

15.5

18.62

29.52

35.71

67.03

132.69

9

M.D. Supply (TLPD)

75.71

101

144.78

143.5

120.05

0

10

Ghee Sale Total MT

817

652

485.45

1056.72

683.16

941.63

11

Ghee Sale (DCS) MT

104

79

80.66

203.48

213.83

225.1

12

Cattle Feed Sale (MT)

3035

3363

4636

6333

7001

6921.35

13

Turn Over (Rs. Crore)

53.6

59.57

93.77

96.33

95.8

99.15

14

Net Profit (Rs. Lakhs)

64.14

69.43

67.56

8.88

2.25

57.4

Table showing Saras Milk Supply of Alwar City with percentage growth

Final Report

Page 42 of 48

Month

00-01

01-02

Gro. %

01-02

02-03

Gro. %

02-03

03-04

Gro. %

Apr

10259

9788

-4.59

9788

10214

4.35

10214

13094

28.20

May

9757

10944

12.17

10944

12946

18.29

12946

15341

18.50

Jun

9620

9862

2.52

9862

11683

18.46

11683

16806

43.85

Jul

10434

9975

-4.40

9975

12090

21.20

12090

17114

41.56

Aug

10431

10283

-1.42

10283

11322

10.10

11322

15654

38.26

Sep

9337

10255

9.83

10255

9890

-3.56

9890

16368

65.50

Oct

7910

8361

5.70

8361

9985

19.42

9985

13530

35.50

Nov

6699

7818

16.70

7818

8848

13.17

8848

11777

33.10

Dec

5883

7329

24.58

7329

8451

15.31

8451

10682

26.40

Jan

5733

6805

18.70

6805

8275

21.60

8275

10282

24.25

Feb

6904

8063

16.79

8063

9716

20.50

9716

11375

17.07

Mar

7280

8978

23.32

8978

10857

20.93

10857

12591

15.97

Total

10024

10846

120

108461

124277

180

124277

164614

388

Avg.

8354 7

9038 1

8

9038

10356

15

10356

13718

32

Month

03-04

04-05

Gro. %

04-05

05-06

Gro. %

05-06

06-07

Gro. %

Apr

13094

14181

8.30

14181

14683

3.54

14683

18855

28.41

May

15341

15318

-0.15

15318

18668

21.87

18668

19975

7.00

Jun

16806

16558

-1.48

16558

18371

10.95

18371

20888

13.70

Jul

17114

15623

-8.71

15623

16857

7.90

16857

21958

30.26

Aug

15654

14357

-8.29

14357

17102

19.12

17102

19572

14.44

Sep

16368

12392

-24.29

12392

15770

27.26

15770

20807

31.94

Oct

13530

13005

-3.88

13005

15179

16.72

15179

18197

19.88

Nov

11777

10828

-8.06

10828

14026

29.53

14026

16542

17.86

Dec

10682

10208

-4.44

10208

13177

29.09

13177

16012

21.51

Jan

10282

10807

5.11

10807

13352

23.55

13352

16279

21.92

Feb

11375

11640

2.33

11640

15241

30.94

15241

18034

18.33

Mar

12591

14110

12.06

14110

15314

8.53

15314

18593

21.41

Total

16461

15908

-31

159087

187740

229

187740

225712

247

Avg.

13718 4

13252 7

-3

13252

15645

18

15645

20519

20

SWOT ANALYSIS OF SARAS DAIRY (AZDUSS Ltd., ALWAR) Final Report

Page 43 of 48

STRENGTHS

WEAKNESSES

 The products are very pure  The products are extremely hygienic  The plant is ISO 9001- 2000 and HACCP certified

 Low availability of raw milk  Dependence on farmers  Reduced milk supply in summers

OPPORTUNITY

THREATS

 Milk is an essential commodity which every body uses.  There is no competitor of packed milk in Alwar.

 Milk can be produced not manufactured.  There is always a possibility of a competitor entering the market.

CONCLUSIONS Final Report

Page 44 of 48

During the four months of my training at Saras Dairy (AZDUSS Ltd., Alwar) and the surveys I conducted till date, I reached the following conclusions: 1) Saras (AZDUSS Ltd., Alwar) is a very large and reputed organization and it gives me immense pleasure and satisfaction to be associated with such a reputed organization. 2) The organization maintains state of the art quality and hygiene standards. 3) A coin has two sides and it holds true for every organization, no matter how large or reputed it is, there are always some small shortcomings along with the plus points of the organization and Saras is no different. 4) Prices of Saras products have been hiked three times during my SIP. I observed that due to frequent price hike people are losing faith in Saras and they think that Saras is very unreliable and has no consistency in price. This factor has resulted in fall in sales. 5) Many people do not have faith in Saras products. They still believe that the products made by the local dairies are better. 6) Some people feel that Saras products possess bad smell and that’s why they don’t use Saras products. 7) Saras parlours/booths also face problems because sometimes there is no timely supply of products to them. They receive the products late in the day and then these products have to be sold the next day. People do not accept such products. 8) People believe that the Saras products are costly. 9) During the course of customer survey I also found the general public’s opinion about different Saras products.

Final Report

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Awards/Rewards Received As Saras is a semi-government organization, therefore, it does not provide any stipend to the interns or trainees. During my SIP training I received a letter of appreciation from Saras Dairy, Alwar (AZDUSS Ltd., Alwar) for doing my summer training with utmost dedication and sincerity. During training I received many compliments from the Managing Director of the organization and the members of the marketing department. In the training period the management of Saras was very satisfied with my performance. Copy of appraisal letter is enclosed.

Final Report

Page 46 of 48

Bibliography The definitions and data used in this report are compiled from the following sources: 1) Annual publication of Saras Dairy, Alwar 2) Business Research Methodology by C.R. Kothari. 3) Business Research Methods published by ICFAI University Press. 4) Definition of marketing by American Marketing Association 5) Definition of marketing by Peter Drucker 6) MIS department of Saras dairy (AZDUSS Ltd., Alwar). 7) Principles of Marketing by Philip Kotler and Gary Armstrong. 8) Principles of Marketing published by ICFAI University Press.

Final Report

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GLOSSARY The definitions of the terms used in this report are: 1) HACCP: HACCP stands for Hazard Analysis and Critical Control Points. HACCP is an industry-wide effort approved by the scientific community as well as regulatory and industry practitioners. This effort is designed to focus specifically on food safety, including food safety in retail establishments. HACCP, or the Hazard Analysis Critical Control Point system, is a process control system that identifies where hazards might occur in the food production process and puts into place stringent actions to take to prevent the hazards from occurring. By strictly monitoring and controlling each step of the process, there is less chance for hazards to occur. HACCP is important because it prioritizes and controls potential hazards in food production. By controlling major food risks, such as microbiological, chemical and physical contaminants, the industry can better assure consumers that its products are as safe as good science and technology allows. By reducing food borne hazards, public health protection is strengthened. 2) ISO: ISO is the International Standard Organization. It is essentially a federation of national standards bodies from around 150 different countries. Within ISO there are constantly new standards and upgrades being worked upon. Established in 1947, ISO is a non-government organization, with a mission broadly to promote the development of standardization with the objective of facilitating international trade. ISO standards are prefixed with 'ISO'. ISO contribute to making life simpler, and to increase the reliability and effectiveness of the goods and services we use. 3) PASTEURIZATION: Pasteurization is the process of heating liquids for the purpose of destroying viruses and harmful organisms such as bacteria, protozoa, molds, and yeasts. The process was named after its inventor, French scientist Louis Pasteur. The first pasteurization test was completed by Pasteur and Claude Bernard on April 20, 1862. The food is heated enough to destroy the most heat-resistant pathogenic or disease-causing microorganism known to be associated with that food. In this process a large quantity of milk is held in a heated vat at 63 °C (145 °F) for 30 minutes, followed by quick cooling to about 4 °C (39 °F).

Final Report

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