Saras Initial Report

Initial Report

Batch 2006 - 08

Saras Dairy Plant (Alwar Zila Dugdh Utpadak Sahakari Sangh Ltd., Alwar) Jaipur Road, Alwar-301001 Ph: (0144) - 2702644, 2701010

Submitted to: Mr. Sandeep Kumar Kautish Faculty Guide ICFAI National College On Saturday, 31st March 2007

Submitted by: Smita Choudhary 6ND11765 ICFAI National College, Alwar

Table of Contents Acknowledgement.................................................................3 3C (Company, Customer and Competition) report................4 1) Overview of the SIP Company..............................4 Departments of Saras Dairy................................5 a) Marketing Department...............................5 b) Human Resource Department....................8 c) Operations Department..............................11 d) Finance.......................................................13 2) The Customers......................................................14 3) The Competition...................................................14 SWOT Analysis.....................................................................15 Who’s who.............................................................................16 Business Objectives...............................................................17 Bibliography..........................................................................18

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Acknowledgement I express my sincere thanks to Mr. Amit Bhattacharya (Company Guide, Deputy Manager, Marketing, Saras Dairy, Alwar [AZDUSS Ltd., Alwar]), Mr. Anil Kumar Mathur (Deputy Manager, Administration), Mr. R.P. Agarwal (Deputy Manager, Prepack Department) and Mr. Rakesh Sharma (Finance Department) for their support and cooperation. They provided me their valuable help and guidance for completion of this report. They provided me all the necessary information required to create this report. It was due to their effort that the report has been successfully completed on time.

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3C (Company, Customer and Competition) Report Overview of SIP company (Saras Dairy, Alwar [AZDUSS Ltd., Alwar] ) 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. The milk union is engaged in procurement of milk from dairy cooperative societies and providing technical input services to increase the productivity of milk animals. Also, the liquid milk is made available to the consumers of Alwar city and other nearby towns like Bhiwadi, Behror, Rewari, Narnaul, Helimandi, etc. at reasonable price. The milk union is managed through the elected board. All the policy decisions are taken by the Board of Directors and implemented through Managing Director. The Alwar plant of Saras (AZDUSS Ltd., Alwar) has been certified under internationally accepted quality and food safety management systems in accordance with ISO 9001-2000 with HACCP. Saras Dairy, Alwar (AZDUSS Ltd., Alwar) has important involvement in the field of milk collection and marketing and maintains the quality of milk products. That is why Saras Dairy, Alwar (AZDUSS Ltd., Alwar) has achieved important position in northern India. Alwar dairy provides facilities to farmers and cattle owners and increases the participation of women in registration of new committees.

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Departments of Saras Dairy, Alwar (AZDUSS Ltd.) Marketing Department American Marketing Association (AMA) defines marketing as the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. Marketing deals with products. Product can be in the form of goods, services or ideas. Marketing is not just selling. 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. Product Portfolio Saras Dairy, Alwar (AZDUSS Ltd., Alwar) prepares and markets the following products: 1) Milk a. Full cream b. Toned c. Double toned d. Skimmed 2) Chhach a. Plain b. Namkeen 3) Lassi a. Sweet b. Namkeen 4) Ghee 5) Paneer 6) Shrikhand 7) Dahi 8) Butter (Purchased from Jaipur dairy, marketed in Alwar) 9) Flavoured milk (Purchased from Jaipur dairy, marketed in Alwar) Distribution Network The distribution network consists of the following places Delhi/NCR 1) Faridabad

Adjoining 1) Rajgarh

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2) South Delhi 3) Helimandi 4) Jhajjar 5) Chakkarpur 6) Basai Road 7) Chhatarpur 8) Rajouri Garden 9) Rohini 10) Bijwasan Up Country 1) Behror I 2) Narnaul I 3) Mahandragarh 4) Neemrana 5) Bawal 6) Shahjahanpur 7) Kotkasim 8) Rewari I 9) Rewari II 10) Bhiwadi I 11) Bhiwadi II

2) Bandikui 3) Malakhera 4) Thanagazi 5) Narayanpur 6) Mahua 7) Mundawar 8) Bansur 9) Kishangarh 10) Ramgarh Alwar Cty: 1) Gen. hospital 2) Jail 3) Eicher 4) Eng. college 5) Dabur India 6) Itarana Booth 7) ASC, Alwar

Sales Force The sale of Saras products takes place through the Saras’ own booths or the booths allotted by Saras. Pricing To achieve its goals a company has to adopt right pricing strategy. Pricing is very important to a marketer. Prices are dependent on market factors. Following factors should be kept in mind for adopting a pricing strategy: 1) 2) 3) 4) 5) 6)

The demand for the product/service in the market Customer’s perception Margin sufficient to sustain in the market Company’s image in the market Expenses incurred in producing the goods Supply of milk from milk producers

Promotion Strategies Various sales promotion techniques used by marketing department to increase the sales of Saras products are: Page 6 of 20

1) 2) 3) 4) 5) 6) 7) 8) 9)

Conducting customer awareness camps Consultancy and hiring of marketing agency Hoardings Glow sign boards Gift hampers Banners Advertisement through Newspapers Wall paintings Distribution of pamphlets

Customer Service 1) 2) 3) 4)

Provide home delivery for bulk purchases. Supply milk to corporates. Special arrangement for marriages and parties. Organize free milk testing camp.

Market Share The share of Saras products is 20% of the total market sales. Market Structure Saras parlours, allotted booths. Competition 1) Though Saras does not prepare butter at the Alwar plant but it markets the butter prepared by Saras Dairy, Jaipur and faces stiff competition with Amul butter. 2) Saras paneer faces competition from Amul paneer. 3) Saras ghee faces competition from ghee prepared by the organized sector (Amul, Indana, Milkfood, Everyday) and ghee prepared by the unorganized sector i.e. local dairies.

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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. Departments and Functions 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 Specifying date of birth in certain cases Appointment of experts Scale of pay House rent allowance Officiating allowances Page 8 of 20

• • • • • • • • • • • • • • • • • • • • • • •

Commencement and cessation Employees on transfer Provision on increment Special increment for outstanding performance Grants Joining time 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

Staff Strength Permanent Employees Contract worker

210 250

Recruitment Not applicable Training and Development The management of Saras trains its employees using the following methods: 1) Organize visits to other dairies 2) Organize guest lectures by experts in the field of dairy technology and microbiology. Seven milk unions namely Ajmer, Alwar, Bhilwara, Bikaner, Jaipur and Udaipur are operating centres where training is provided. The purpose of training is: a) To enhance active participation of the producer members in the Dairy Cooperative Society (DCS) Page 9 of 20

b) To create awareness about improved animal husbandry practices namely feeding, cross breeding, animal management and stimulate fodder production. Appraisal and Retention Practices The employees are appraised and retained by providing them the following facilities: 1) Promotion/salary hike for good work 2) Better training 3) Better working atmosphere 4) Better medical facilities

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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) 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 Celsius 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.

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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) 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

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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. Daily Collection

Rs. 80,000/- Approximately, varies according to season

Final accounts are maintained yearly. Daily transactions are maintained in one day business. Budget is prepared by the Accounts Department. 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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The Customers Customers are the end users of the products/services. If customers are satisfied, the organization can progress and grow very fast. In present scenario customer is the boss. The customers of Saras products are: 1) General customers 2) Government departments 3) Private concerns 4) Industries 5) Jail 6) Educational institutes 7) Canteens 8) Hotels 9) Fast food restaurants 10) Juice corners

The Competition There is no competition of Saras with any body as no brand of packed milk exists in Alwar. The Saras Dairy faces competition from milkmen and local dairies.

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SWOT Analysis SWOT stands for S for Strengths W for Weaknesses O for Opportunities T for Threats SWOT analysis is a great tool for introspection. SWOT framework offers a good starting point for analysis. This is the best way for self analysis and introspection. SWOT analysis is essential for every organization for its success. Strengths  The products are very pure  The products are extremely hygienic  The plant is certified by ISO 9001- 2000 and HACCP 15000 HACCP is a food safety management system that has its origin in the US. HACCP is a system that identifies, evaluates and controls hazards which are significant for food safety. HACCP stands for H for Hazard A for Analysis C for Critical C for Control P for Points Weaknesses  Low availability of raw milk  Dependence on farmers  Reduced milk supply in summers Opportunity  Milk is an essential commodity which every body uses.  There is no competitor in packed milk. Threats  Milk can be produced not manufactured.  There is always a possibility of a competitor entering the market.

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Who’s Who of Marketing Department Organization Hierarchy Mr. Ramphal Gurjar, Chairman

Mr. J.R. Dhaka, M.D.

Mr. S.K. Mahajan, Plant Manager

Mr. Amit Bhattacharya, Dy. Manager

Mr. Mahesh Sharma, Asstt. Manager

Sales Supervisor

Sales Inspector

Root Supervisors

Skilled Workers

Computer Operators

Fourth Class

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Business Objectives Goals for the Executive Training 1) To bridge the gap between theoretical knowledge and practical implementation. 2) To understand the working, operations, management, administration, products & services and expectation of the customers. 3) To gain confidence 4) To gain practical experience, that proves very helpful to work successfully in any company. 5) To get exposed to the practical working environment so that one can be free from any type of hesitation when he/she goes for a real job. 6) To fully equip the candidates to face the challenges of the real job. 7) Learn how to better coordinate with the staff. Targets for the SIP period 1) To make working of marketing and human resource department better. 2) Increase market penetration of Saras products. 3) Conducting market surveys to know about the expectation and satisfaction level of customers. 4) To organize visits to the plant to explain the working of the plant.

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Bibliography 1) ICFAI reference books 2) Definition of Human Resource Management by Byars and Rue 3) Definition of Marketing by American Marketing Association 4) Definition of Marketing by Peter Drucker

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