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-: GENERAL INFORMATION:-

Company Profile

Name : Baroda District Co-operative milk producers union limited.

Address : Baroda Dairy,

Opp. ONGCs Regional Office,

Makarpura Road,Baroda - 390 009.

Registered office : Same as above

Email : [email protected]

Year of Establishment : 24th December 1957.

Form of Organization : co-operative society

Size of Unit : large scale unit.

Chairman :Mr.Madhubhai B.Shrivastv

Managing Director : Mr.Ravindra mathur

Vice Chairman : Mr. Satishbhai M. Patel.

Auditor : Special Auditors (Milk co-operative Society, Baroda)

Bankers : Bank of Baroda, BarodaThe Uco Bank, Baroda

Punjab And Sindh Bank, BarodaBaroda Central Co-operative Bank Ltd., Baroda

Total unit : Baroda Dairy, Baroda

Sugam Unit, Baroda

Cattle Feed Factory, ItolaMilk Chilling Centre, Bodeli

Veterinary Sub Unit, Savli

Veterinary Sub Unit, Dabhoi

DIMENSIONS:-

Area in Sq.km : 77.94

No. of District : 12Urban Land : 611300 Hectares

Irrigated land : 127900 Hectares


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HISTORY:-

There are lots of farmers in India and they are having millions of cowsand buffalos. But after all these farmers and milk producers have to suffer different

types of difficulties. Moreover in milk business the middleman is taking high quality of

milk from producers at lower rate and sell it to the consumer at high rate but at lowerquality by adding water into the milk.

After the independence the milk union was established on 24th Dec.1957 with a

view to relive the milk producers from exploitation by the private milk vendors & togive proper remuneration to them & to supply good quality of milk to the citizens of

Baroda city.

The milk union got the guidance & help from AMUL in all areas whichwere crucial for the establishment & post establishment period. Shri T.K. Patel

(G.M.), Amul. & Dr.V.D.Kurian Supported & guided Baroda milk union .The union

had strong leadership of Mr.Jashwantlal shah, Minister for dairy development in the

Maharashtra,who laid down the foundation stone of Baroda milk Union.

In the beginning there were six milk co-operative which become themember of this union. From these milk unions, the absence of the adequate facilities,

for chilling and pasteurisation Hygienic milk from Amul Milk Union for distribution

it to consumers of Baroda city.

The foundation stone of Dairy plant having capacity of processing

50,000 LPD milk was laid on 24 th Aug1962 by Shri T.K.Patel, the chairman of the co-

operative dairy movement of Gujarat. In 1963-64, the bottling plant was set byUNICEF at Baroda dairy to supply milk to all school going children. Shri Morarji

Desai, the 10th Finance minister of India, In augurated the dairy plant commissioned on

25th April, 1965.

Baroda dairy works as organisation under co-operative sector & works

under co-operative societies Act, 1956.


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-: PRODUCTION DEPARTMENT:-


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INTRODUCTION:-

People have endless wants & to satisfy these wants they need various goods & services.

The production Department produces these various goods. The main function ofproduction dept is to convert raw materials into finished goods by processing them &

creating utility out of them. Production dept has to first of all estimate the demand &

accordingly production must be done for which arrangement for raw materials. Thisdepartment is very useful for making profit as well as provide products at reasonable

price which is very useful for society. Thus production dept is interrelated with the

personnel, finance, marketing dept.

ORGANISATION STRUCTURE EOR PRODUCTION DEPARTMENT:-

Production manager

Assistant managerShift superintendent

Milk receiving section

Process section

Ghee section

Butter section

Pouch packing section

Technical officer

Supervisor

Operator

Workers

PRESENT PRODUCT MIX:-

MILK:-Brand Name Fat % SNF% Price (Rs.)

Gold (500ml) 6.08 9.0010:50

Shakti (500ml) 4.50 8.50

09:50

Sfurti (500ml) 3.02 8.0008:00

Slim & Trim (500ml) 1.50 9.00

07:00

GHEE:-

Brand Name Qty. Price (Rs.)


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to the laboratories where it is graded in terms of FAT & SNF (solids, no fats). The milk

from these canes is poured in the help of belt conveyor system. Then after the canes are

washed with the help of Automatic washer Machine. The average number of canesare washed per minute is 5 to 6 canes. Once the milk is collected in the tank, the next

process of separation FAT & SNF from milk begins & it is separately stored in another

tank.

PASTEURISATION:-

After separations of FAT & SNF the milk is passed on to the hitting section for

pasteurisation. There, the milk is boiled at 76c to 80c for 15 second and in very next

moment it is chilled at 4c to 6c instantly. Due to this, the milk becomes cream less.Thus, the pasteurised milk & cream is stored in different tanks. From the pasteurisation

section the milk is transferred to the packing section through pipeline. In packing

section there are 14 machines, used for packing the milk in pouch of 500ml. which

operates automatically. An average output of one machine is 3000 pouch of 500ml milk per hour. This section also consists of carats washing system and it is also away

automatic.Receiving

Raw milk collection

Unloading

Grading

Weighting

Sampling

Chilling (14 c)

Storage

FLOW CHART FOR PRODUCTION OF MILK:-

Raw milk receiving on Dock

Pasteurisation plant

Pasteurised milk Cream

Cream is added as per the product specification


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Packing section

Storage

Raw material (milk)

Separation of Fat & SNF

Passed on heat

Milk is boiled at 15c to 74c

Immediately chilled at 4c to 6c

Packing process

PRODUCTION OF CURD :-

Pasteurisation of toned milk

Addition of colour

PackingIncubating room

Storage (0c or below)

In India use of curd is wide. The toned milk is heated at 39c to 200c then colour is

added and allowed sets at 0.8% acidity. The pasteurised toned milk is collected in tank

and in it colour is added after that packing is made and it is storage at 0c or belowtemperature

PRODUCTION OF PANEER:-

Formation of milk

Add acid

To press for milk shageThe piece of paneer is taking into salt water

Packing

PRODUCTION OF BUTTER:-

There is transferred of cream from pasteurisation section to butter section. Then creamis pasteurised at 85c to 95c for 15 seconds. Then this pasteurised cream is stored forone night. Then it is turned with help of churner. Then it is again churned after addition

of colour. Afterwards, buttermilk is separated and there is washing with pasteurised

water. Then salt is added and final working is carried on. Thus, the butter gets ready for

packing. It is packed in 100gms 1500gms pack & stored in a cold storage room


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FLOW CHART FOR PRODUCTION OF BUTTER:-

Cream

Cream pasteurisation (85c to 95c)

Overnight storage

Butter churn

Sample for analysis (FATS %)

Addition of colour

Churning

Breaking

Draining of butter milk

Washing with pasteurised water

Slow working

Dry salting

Final working

Packaging.

PRODUCTION OF GHEE:-

White butter

Pasteurisation method

Clarified fat

Ghee kettle (105c to 115c)


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Clarification (37c)

Storage

Packing.

Baroda dairy also manufactures ghee. Ghee section is just attached to raw milk

receiving dock (RMRD). First of all white butter is processed by pre stratification

method & clarified fat is collection in huge ghee kettle it is heated at a temperature

between 105c to 115c and again there is clarification at 37c. Thus, pure ghee getscollected in a tank where it is stored at a room temperature. Next to the storage is

attached the pouch packing machine. This machine is used to pack the pouch oh ghee

which is of 500 grams or 1 kilogram.

PRODUCTION OF BUTTERMILK:-

Curd

Addition of maska whey, sour buttermilk (30%)

Homogenisation

Pasteurisation

Standardisation (FAT 1%, SNF 5.0 to 5.5%)

Packing

Storage (10 or below)

For producing Buttermilk, there is addition of maska whey & sour buttermilk is 30% of

the total quantity of curd. Then there is homogenization e.g. maxing & churning.

Afterward, there is pasteurisation & standardisation. Thus, the curd gets converted intobuttermilk. Then it is packed & stored.

PRODUCTION OF FLAVOURED MILK:-

FLOW CHART FOR PRODUCTION OF FLAVOURED MILK:-


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Toned milk (pasteurised)

Addition of sugar (8%)

Homogenisation

Filtration

Pasteurisation

Storage

Standardisation

Addition of colour & essences

Packing

Bottle filling pouch filling

Crowning Storage

Storage Dispatch

Dispatch

First of all these is addition of sugar in toned milk, which is pasteurised. Then there ishomogenisation out 500psi (pound per square inch). PSI is a unit that denotes pressure.

Afterwards, there is filtration & pasteurisation. Then it got stored in a tank throughpipelines. Than there is standardisation & addition of colour & essence. Then it is

packed in bottle/ pouch of 200 ml.

PRODUCTION OF GULAB JAMUN:-

Raw milkMake mava

Make small pieces

Take fry into oil & gheeTake into sugar liquid

Packing


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PRODUCTION OF RAJWADI KADHI:-

Buttermilk

Besan, dhana-jeera powder, green chilly, ginger, salt, sugar & water.

Mixing

Heating at 100c

Turmeric powder

Tadka (ghee, methi, long, taj, & limdi)

Heating (15 to 20 min.)

PackSing.

In a big container, a certain quantity of buttermilk is taken & then there is addition of

basen, dhana-jeera powder, green chilly powder, salt, sugar, & certain amount of water.Then it is mixed properly and heated at 100c till the flow comes up afterwards, there is

addition of turmeric powder. Then, for having Tadka, methi, long, taj& limdi are

added in ghee & this mixture is heated at 100c and then it is mixed. Thus, to havekadhi, it is heated for 15 to 20 minutes. Lastely, when it gets cool it is packed in 500ml

pouch with the help of automatic machine.

INVENTORY MANAGEMENT:-

In Baroda dairy the main raw material is milk & it is perishable in nature so there is

daily procurement & production of milk products. So in the Baroda dairy there is noneed for raw material inventory Mgt. the same applies to finished goods also.

MAINTENANCE OF MACHINE:-

At Baroda dairy the entire machine are maintained in the best manner. The machinesare checked everyday before the production gets starts. Also the machines are repaired

annually to ensure the better operation of machine. If at any time there is break down

then the machine is repaired immediately.


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QUALITY CONTROL:-

Baroda dairy has a separate quality control department. The production manager is

finally responsible for quality control. Quality is checked at each and every stage i.e.

from procurement of milk to final packing tests are performed.

For further surety of quality GCMMF (Gujarat co-operative milk marketing federation.)

send one quality control expert & also the Govt. sends one AGMARK chemist at theBaroda dairy.

STORAGE FACILITY:-

In Baroda dairy products like milk, ghee, buttermilk, etc. are produced which are

perishable in nature & can only be stored in cold storage. Therefore, in the premises of

Baroda dairy there is one cold storage where temperature is maintained as per the

requirement.


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-: HUMAN RESOURCES

DEPARTMENT:-


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It is the most widely used method of selection. At Baroda dairy there is a panel of

interviewers that includes the managing directors, chairman, personnel manager and

export from relevant department.

MEDICAL CHECK UP:-

It is compulsory for technical staff, especially for staff working in productiondepartment. A candidate should be certified fir by the medical officer. If the medical

officer of the Baroda dairy certifies him unfit physically or manually he is not absorbed.

PLACEMENT:-

After the candidate has passed the entire necessary obligation then the managing

director or the personnel manager of the Baroda dairy approved his placement. The

selected candidate is asked to work on a probation period for one year on a fixed salary

no extra allowance is given to him during this period. A bond is signed for a minimumof 3 years. If the employee leaves the org. before that period then he has to repay three

months salary to org. if employee is found office after the probation period then he isabsorbed on permanent basis.

INDUCTION:-

For the induction purpose, in the beginning, there is visit of Baroda dairy & the new

employee is informed about the history, growth & development of Baroda dairy.

Then he is explained what is expected of him & for this he is explained the rules,regulation, policies & procedures that directly affect him. He is made aware how his

job fits into the overall operation of org., his own duties and responsibility, & to who he

should look for when he was any problem. The last stage in the induction process is theintroduction stage. Here the new employee is introduced to different department heads

that further introduced to the employees working in that dept.

JOB DESCRIPTION:-

Job description is provided to every employee entering the org. and it includes detail

regarding:-

Job title

Job location

Job summary

Duties & responsibility

Relation of other job to his / her job

Working condition

Details regarding the person under whom he / she has to work.

TRADE UNION:-


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According to section 2(b) of the trade union act of 1926, A trade union is a

combination of persons, whether temporary or permanent, mainly for the purpose of

regulating the relation between workers & Mgt. and for imposing restrictive conditionon the conduct of any business.

At Baroda dairy, there are two unions. One for the workers & another for officerswhich are working for the following:-

To get adequate bonus

Strive for better working condition.

To secure better pay scale for employees in keeping with the prevailing

standards of living in the country.

To work for welfare and development of workers educational facilities and

group benefit scheme for them.

BARODA DAIRY TRADE UNION:- ( FOR OFFICER)1) Registration Date :- 6th July, 1999

2) Registration No :- G 59523) Starting Date :- 26th February, 1999

President, Vice president, Secretary, Joint Secretary, Treasure this all seats are

changed time to time so, no specification.

RASTRIYA MAJDOOR UNION:- ( FOR WORKERS)

TRAINING & DEVELOPMENT:-

Training is the organised procedure by which people acquire knowledge & skill for a

definite purpose. It is the act of increasing the knowledge & skill of worker doing acertain job.

At Baroda dairy training is given twice a year to the employees. First of all the

employees who have need of training are selected & are trained by practical &

theoretical lecture at MANSI INSTITUTE OF TRAINING, MEHSANA.

The record book is maintained which includes the record of the trainees performance.

If it is not improved then further training is given.

Training is the act of increasing the knowledge & skill of an employee for doing a

particular job & the term Development refers top the nature & direction of changedinduced in employee through the process of training & education. Development refers

to the whole complex process by which employee as individual learns, grows &

improves his abilities to perform a wide variety of jobs.

At Baroda dairy there are two ways in which training is imparted to the employees:-

IN HOUSE TRAINING:-


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It is the type of training where the employees are trained within the dairy. The head of

the concerned department is responsible.

EXTERNAL TRAINING:-

There, the employees are sent outside the org. to increase their knowledge & skill. The

external training schedule & further procedure at Baroda dairy is explained as under.

IDENTIFICATION OF THE TRAINING NEEDS:-

The dept. head identifies the area in which the present skill of the employee is supposed

to be enhanced. It has to be informed to the personnel & administration and for this,

there is a form to be filled.

TRAINING RECORDS OF THE EMPLOYEES:-

The personnel & administration department maintain a record of the employee whoundergoes training. This record consists of their name, department, payroll number, the

reason for undergoing training, the place where they are going for training and the cost

incurred by the org. during the training. I.e. the cost incurred in the logging, boardingtraining fees etc.

FEEDBACK OF TRAINING PROGRAMME FROM THE EMPLOYEES:-

After the completion of training the employees has to fill in and submit a feedback

form. The information in the form consists of the place, where the training was

conducted, whether the time duration of the training was sufficient or not, whether hisfacilities were proper, how the training would be beneficial to them, and how it will be

implemented at the work place.

TRAINING EVALUATION:-

After three month of completion of training the personnel & administration send

training evaluation form to the head if employees who got trained. The head of the

dept. fill this form & return it to the personnel & administration dept. from thisevaluation one come to know how the work practices, before and after the training,

have improved and how it has benefited to the org.


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TRAINING PROGRAMMES:-

Personal hygiene

ISO 9001 training (quality base)

ISO 14001 training (environment base) Safety training

Machine operation training for operator

General awareness training.PROMOTION & TRANSFER:-

Promotion and transfer forms the crucial part of and org. Baroda dairy has its ownpolicy for this.

PROMOTION:-

Promotion is the advancement of an employee from one job level to a higher one, with

an increase in the salary. Baroda dairy does not have any fixed promotion policy. Butgenerally, time scales promotion policy is followed. Officers & other staff get the

promotion after 10 years. While workers get the promotion to upper step after 15 years.It also provides promotion on the basis of the employees competency. The promotion

could be in the form of increment in the salary or change in the designation or change

in the grade. There are in all 14 grades at Baroda dairy.

TRANSFER:-

In case of voluntary transfer an employee has to give an application to the personnelmanager. This application contains the reason for transfer and the place where he / shewant to get transferred. If there is any kind of need for transfer then it can be done only

after consulting the personnel manager and managing director. Generally, the transfer is

within the department. Transfer to other department is rare at Baroda dairy.GRIEVANCE HANDLING:-

The employees grievance is for the following reasons:-

Demand of individual wage adjustment

Complaints about job satisfaction.

Transfer to other department. Undesirable work etc.

The Mgt. could have the following grievance against workers:-

Indiscipline at work.


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Non fulfilment of the contract

signed between Mgt. & workers ofthe trade union.

In this co-operative sector the grievance handling procedure is as follows:-

If the workers has anycomplain, they will send

the written complain to

their supervisor. Heforwards this complaint to

the labour officer. If there

is no solution to the

problem then it passes tothe Managing Director.

ADMINISTRATION OF WAGES/SALARY:-

Salaries are paid on the monthly bases while wages may be paid on , monthly, daily orhourly bases. At the end of the month personnel dept. send order to time keeping officer

to submit the file of workers attendance and on the bases of this the wages / salaries ofworkers / employees is decided.

The personnel dept. sends the details of wages & salaries to the accountants dept. for

making payment. The accounts dept. pays salary to the office staff on 5th of everymonth by cheque and to the workers on 7th of every month by cash.

WELFARE ACTIVITIES:-

The Baroda dairy provides many facilities to its employees. A welfare officer isappointed who is concerned with the statutory and non-statutory welfare provisions

which are as per the factories Act, 1948. The following are the some benefits given to

the employees.

UNIFORM:-

The mgt. of Baroda dairy provides uniform to its employee. It provides there pairs to

workers and two pairs to staff. The uniform is given to every employee including

executive and M.D. and same to the workers. This brings feeling of being givenimportance in the org. to the employees. The org. also provides one pair of shoes to

employee to every year. Employees engaged in field duty are provided raincoat & T-

shirt.CANTEEN:-


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The canteen provides nutritious food to the employees. Baroda dairy has large canteen,

which provides lunch, dinner, at a subsidized rate. Coupon system is adopted in

canteen.

SAFETY SUGGESTION SCHEME:-

Baroda dairy tries to minimise accident during the work. It invites safety suggestions

from employees. Good suggestion are even implemented & also awarded with the prizein the form of wish. This shows that the Mgt. is continuously trying to improve the

working condition.

INSURANCE SCHEME:-

Baroda dairy provides for ESI (employees state insurance) scheme to the employee

having salary less than Rs.6000 p.m. It also has group insurance & medical insurance

scheme for the employees.MEDICAL HELP:-

Baroda dairy also provides medical help up to Rs.3000 in case of treatment of heart,

surgery, kidney problem or cancer, after the submission of authentic documents.INCENTIVES:-

An incentive can be anything that attracts a workers attention & stimulates him to work.DEFINITION: - An incentive scheme is a plan or programme to motive individual or

group performance. An incentive programme is mostly including monetary rewards but

may also include a variety of non-monetary rewards or prizes.

ALLOWANCES:-

Pay scales

Dearness allowance

Additional dearness allowance

HRA

Shift allowance

Conveyance allowance

Attendance allowance Educational allowance

Dust allowance ( Itola)

Washing allowance

Village allowance

Cash allowance

Key allowance


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Field duty allowance

Centre allowance

Special allowance

Special visit allowance

Travelling allowance

Medical allowance Leave benefits

Provident fund / family pension

Gratuity

Bonus

Accident insurance

Petrol allowance

Vehicle loan

Car loan

Uniform

Shoes. Encashment of annual leave

Super annuation

Group insurance scheme

Transfer expanses

Here, all allowances are not provided for all employees and officers .some is for

employees and some are for officers. it all are depends upon position of officers.

LEAVE:-

MEDICAL LEAVE:-

An employee is allowed 12 sick leaves in a year. These leaves can be carried forward tonext year but are not eligible to be encased.

CASUAL LEAVE:-

An employee is allowed 10 days casual leave every year. The employee must inform inadvance or after returning from leave.

FESTIVAL LEAVE:-

An employee is allowed 14 festival leave every year. If the employee works on thesedays then he / she can get leave as & when required by him / her.

2ND & 4TH SATURDAY:-There is holiday on 2nd and 4th Saturday of every month for officers, managers & other

administrative staff.


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1) Workers get one holiday every week but the day is not fixed. Different

group of workers get holiday on different days. It is done to have

continuous production

MAINTENANCE OF PERSONAL RECORDS OF EACH EMPLOYEE:-

At Baroda dairy personal records of each employee is maintained right from his

application for job till his resignation or retirement. The different documents areproperly arranged in a separate file:- (such as)

Application for the job.

Bio-data.

Application order.

Confirmation letter.

Appointed letter.

Interview panels decision letter.

All the other information relating to the employeeduring the service period.

FORMAT OF PERSONAL RECORDS:-

Full name

Fathers name

Present address

Permanent address

Branch dept

Birth date

Age

Date of joining the org.

P.F A/c No.

E.S.I policy No. ( ESI =

Employee State Insurance)

Qualification

Wifes name

Details regarding children

EMPLOYEE STATE INSURANCE:-

Baroda dairy employee state Insurance Corporation is Govt. Corporation under the

employee state insurance Act 1948. Baroda dairy has adopted this scheme on the 22nd

February, 1969. This act provides benefits to its employee in case of sickness,


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disablement, maternity, medical help etc. Baroda dairy has adopted ESI scheme for its

workers, under this act only those employees, whose gross salary is less than Rs.6500/-

pm are converted about 6.5% of salary is kept for ESI scheme out of which 1.75% isdeducted from the salary of the employee and the dairy Contributes the rest 4.75%.

This collected 6.5% is deposited in the Govt. Kacheri. Deduction statement is also

prepared every month and written statement is also submitted to the Govt. Kacheriafter every 6 month.

The local office of ESI is at Gorwa, pani-gate, sayajigunj, Warasiya, Makarpura,

Nandesari etc. local office send information to the head office.

PROVIDENT FUND SCHEME:-

The central govt. introduced the employee provident fund act in 1952. The main aimof this scheme is maintain the salary of living of employees after retirement or death. In

case of death of employee the family member of the employee become the member of

the scheme. Minimum services to the eligible for person are 10 years. The retirement

age is 58 years for the office staff & 60 years for the workers.Total 12% of employees salary is deducted from the total salary for month and the

dairy gives matching contribution. The dairy divides this 12% in the following way:-3.67% for the provident fund & remaining 8.33% for the retirement scheme. Apart

from this, Baroda dairy also gives loan to the employees from the provident fund for

the purpose like marriage, higher education of the children, medical leave, housing

needs etc. as per the rules & regulations.GRATUITY:-

In case of employees covered under the payment of gratuity act, 1972 gratuity iscalculated in the following way:-

Gratuity = (avg. basic salary * 15 days* no of years of services completed)26

The employee becomes eligible for gratuity only after 5 years of service.-: MARKETING DEPARTMENT:-

INTRODUCTION:-

Every organisation whether big or small needs to have a marketing department.

Marketing department serves as an important part of an org. Which bring revenue in the

business. It depends mostly on the marketing dept. as to how they sell the final products& creates demand for it. Baroda dairy is having a full fledged marketing dept. where all

the functions related to marketing are performed. There is about 1500 Kendras for

selling their products.MARKETING RESEARCH:-


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Marketing research may be defined as scientific & controlled process of gathering non-

routine information regarding the product & its market condition. It helps the Mgt. to

solve many problems.Marketing research concentrates on the study of products planning & development,

pricing policies, effectiveness of personal selling, advertising & sales promotion,

distribution system, marketing strategies, market competition, buying behaviour &attitude of consumer.

Marketing research is carried out periodically with the help from the students who

approach Baroda dairy for industrial training. Survey is conducted by the studentsdoing B.B.A / M.B.A under the guidance of marketing dept. At the end of the survey,

the results are verified & conclusion is abstracted.

TARGET MARKET:-

The whole city of Baroda is the target market for Baroda dairy. Also the town of

Baroda city is the target market for the Baroda dairy.

MARKET SHARE:-

Baroda dairy has 80% market share. It is market leader. It is due to the quality andvariety of milk & milk products which are sold at reasonable price.

SALES VOLUME:-

For the milk, the average daily sale is increasing constantly. It is clear from the

following figure:-

YEAR Avg. Monthly Sales (litters)

2000.2001 2, 41,000

2001.2002 2, 56,000

2002-2003 2, 76,0002003-2004 2, 87,000

2004-2005 2, 92,219

2005-2006 3, 06,817

2006-2007 3, 18,734

PRODUCT PLAN:-

A product is a tangible thing that has capacity to satisfy human needs. The product

forms an important part of marketing mix. If the product fails to satisfy consumer therewill be no effect of additional cost incurred on marketing the products. Before

launching any new product or before having change in product mix, a survey is carried

on to know the view of consumer. e.g. during one survey it was found that the

consumer were in a need of milk with more fats. So, after proper analysis by the


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In geographic segmentation the flavoured milk is distributed from the milk bars

located at the famous and mostly crowded areas of the Baroda. For e.g. Kamati baug /

sayagi baug, raopura, fatehgunj, outside the dairy, Kareli baug etc. But the mostimportant place where there is highest demand for flavoured milk is the Railway

station.

The demographic segmentation means dividing the consumer. Market in terms of age,sex, family, income, occupation, etc. At Baroda dairy, it is done by having milk bars

near schools & collage, as the major consumers for dairy products are children any

young people.CHANNEL OF DISTRIBUTION:-

One level distribution system is managed at Baroda dairy for all the products excepted

ghee. A one-level channel contains one selling intermediary, such as retailer. Productslike milk, flavoured milk, curd, rajwadi kadhi, chhas etc. One level system is

maintained where there is only a retailer between the manufactured and the final

consumer.

Manufacturer

Retailer

Consumer

The durability of milk is only for 72 hrs. So the distribution has to be such that milk is

delivered to the final consumer before it gets spoiled. Hence, there is only one mediator

between the manufacturer & the final consumer.

For the milk distribution there are morning & evening booths & the full time centres,

which work as per the orders from Baroda dairy. The morning booth centres have ashort span of working from 4:00am to about 7:00 am but they also have a major chunk

of sales as compared to the full time centres. About 80% of the sales are through the

morning booth and the rest 20% are by the evening booth s as well as full time centres.Now this retailers are stared the home delivery to boost up their sale. They have a

coupon system where in the coupon are issued to the customers and milk is delivered

against it.

The distribution system at Baroda dairy is very systematic. The vans take their

particular routs & deliver the crates to the morning centres. While returning, these vans

deliver the milk to the FTC and collect the empty crates from the morning centres.There are about 803 morning centres, & evening centres and 1293 full time centres. In

all there are about 114 routes for morning centres, 3 routes for evening centres & 20

routes for afternoon centres.

PRICING POLICY:-


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Price may be defined as the value of product expressed in the monetary terms which

a consumer pay or expected to pay in exchange and anticipation of the expected or

offered utility. Therefore, we can say price is a link between the consumer andorganisation. As the main objective of Baroda dairy is not profit maximisation, so it

sets reasonable price for its products. It considers the interest both the parties. i.e. the

suppliers of milk and the consumers currently, all over India the price of milk is fixedby the NDDB (National Dairy Development Board).

EXPORT:-

The products produced at Baroda dairy are not exported to other countries. It supplies

only to the Baroda dairy. Exported countries like..

USA

SINGEAPOREJAPAN

AUSTRALIA

KUWAIT

BATLERINDUBAI

ABUDHABI

WAREHOUSING & TRANSPORTATION:-

WAREHOUSING:-

Baroda dairy does not have any warehouse but it has cold storage. Mostly, all theproducts are perishable in nature so there is a facility of cold storage and it is within the

dairy premises.

TRANSPORTATION:-There is use of private vehicles i.e. tempo & trucks which are hired to transport milk.

The transportation cost is low as it is within Baroda district.

SALES VOLUME OF THEIR PRODUCTS:-

The sales revenue from the various products of Baroda dairy as well as sugam unit forthe year 2006-2007 is as follows:-

Products Sales


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Milk 3, 18,734 litre.

Curd 2, 90,953 pouches

Buttermilk Jeera- 12, 58,111 pouchesChhas-10, 00,596 litres

Flavoured milk 89,860 pouches

Ghee 56,842 litreRajwadi Kadhi 24,597 pouches

LIST OF COMPETITORS:-

The major competitors are the private vendors & other dairies, which are not members

of the union. The other dairies are:-

Sardar - pack milk

Vimal - pack milk

Umiya - pack milk

Ellora - loose milk Bumiya - loose milk

Amul - pack ice-creamJagdish - pack milk

Vadilal - pack ice-cream

Havmor - pack ice-cream

Rajasthani - loose ice-cream-: FINANCE DEPARTMENT:-

INTRODUCTION:-

The first & foremost requirement of any business is finance. Finance is required in each& every stage of the business. Business is nothing but a process of making money

through money. So to make money you need money. It can be acquired through various

sources. After the acquisition of finance, the work of utilisation beings. The financedept. has to deal with not only the procurement of finance but also with the proper

utilisation of it. Finance is the basic requirement for purchase of assets, production of

goods, marketing, selling, etc. The finance dep. Take the decision regarding financial

matters. Thus, we can say that finance dept. is one of the most important dept.FINANCIAL PLANNING:-

Planning is one of the most important principles of Mgt. the success of the org.depends mainly on proper planning. The proper estimation of the requirement of funds,

determination of sources from where the fund will be raised and its proper utilisation

can be termed as financial planning.Financial planning includes the preparation of projected profit & loose account, fund

flow statement & balance sheet. Estimation of growth in sales is very important

because from that the need of funds is decided. As due to rise in sales there is need of

more assests. As more investment has to be made for additional plant & machinery to


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raise its capacity to produce. Additional current assets are also required to products &

sell more quantity.

Customer of milk

Retailers

Cash collection centre

Dairy

Bank

Farmers

As explain in the chart. We can understand that customer buys milk

and pay price for it to retailers. All the retailers send it at cash collection centre. Cashierat the respective centre send the cash at the dairy the same to the respective branches of

the villages. Thus we can say that it is the bank which makes collection and

distribution.

Growth in sales is an important objective of most firms. An increase

in a firms market share will lead to higher growth. The firm would need assets to

sustain the higher growth in sales. It may have to invest in additional plant andmachinery to increase its production capacity. In summary, the financial planning

process involves the following facts:-

Valuating the current financial condition of the firm.

Analyzing the future growth prospect and option.

Appraising the investment option to the achieve the ..Growth objectives.

Projecting the future Growth and profitability.

Comparing and choosing from alternative Growth plans andfinancial option.

Measuring actual performance with the planned performance.

SOURCE OF FINANCE:-

Baroda dairy does not raise finance for short term as all the requirement for short-term

finance are fulfilled by the internal sources (i.e. reserves & surplus). Mostly, finance is

raised from long-term sources of finance. All the requirement of finance is fulfilledeither by issuing equity shares or by taking loan from National Dairy Development


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Board. The repayment of loan is done in equal instalments, the amount is predecided.

Generally, 6% interest is charged on the amt. of loan.

SIGNIFICANT ACCOUNTING POLICIES:-

A. Basis of preparation of financial statement:

The union generally follows mercantile system of accounting & recognises significantitem of income and expenditure on accrual basis.

Sales:-

Sales are recognised on delivery. Sales shown are excluding excise duty & taxes.

Fixed Assets:-

Fixed assets are valued at cost

Depreciation:-

Depreciation on fixed assets is provided on written down value method.

Investments:-

Investments are stated at cost.

Valuation of inventory:-

Stock of raw material. Packing material, stock of stores & spares are valued at cost,

finished goods are valued at lower cost or market value (excluding excise duty andtaxes). Semi finished goods are valued as certified by managing director.

Foreign currency transaction:-


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Transaction denomited in foreign currencies are normally recorded at the exchange rate

preventing at the time of the transaction.

Excise duty:-

Excise duty has been accounted on the basis of payments made in respect of goodscleared.

Retirement benefits:-

Provision for graduity liabilities of employee is made on the basis of

actual valuation as provide under the group graduity cum life insurance policy taken by

the union from LIC, premium paid where of is charged to revenue in each year.Provision for encashment of leave entitlement is made on accrual basis in accordance

with accounting standard of the institute chartered accountant of India.

Customer of milk

Retailers

Cash collection centre

Dairy

Bank

Farmers

As explain in the chart. We can understand that customer buys milkand pay price for it to retailers. All the retailers send it at cash collection centre. Cashier

at the respective centre send the cash at the dairy the same to the respective branches of

the villages. Thus we can say that it is the bank which makes collection anddistribution.

Growth in sales is an important objective of most firms. An increase

in a firms market share will lead to higher growth. The firm would need assets to


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sustain the higher growth in sales. It may have to invest in additional plant and

machinery to increase its production capacity. In summary, the financial planning

process involves the following facts:-

Valuating the current financial condition of the firm.

Analyzing the future growth prospect and option.

Appraising the investment option to the achieve the ..

Growth objectives.

Projecting the future Growth and profitability.

Comparing and choosing from alternative Growth plans and

financial option.

Measuring actual performance with the planned performance.

-: CAPITALIZATION:-

Capitalization means value of all capital regularly employed in the business. It isgenerally used to refer the sum of the outstanding stock of fund obligation which may

represent wholly fixed value.

1. SOME PROBLEM OF CAPITALIZATION:- At the time

of corporation of dairy.

2. At the time expanding the existing co-operation.3. At the time reorganization.

Baroda dairy is a co-operative sector. So all the, village society of Baroda dairy

collectively has to take money from their representative village society. Baroda dairyissues equity shares of Rs.100 as on 31st, March 2004 The total amount of equity share

capital was Rs.3,00,00,000 reserves and other fund was Rs.8,01,81,301 and

Rs.1,23,68,581 long term loan from NDDB.Profit record of the last (5) five years.

2000-2001 32, 20,354

2001-2002 30, 55,6702002-2003 43, 64,244

2003-2004 47, 16,598

2004-2005 43, 64,244

Therefore, we can say that Baroda dairy is over capitalization assists earning are less

than its capital investment.


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-: CAPITAL STRUCTURE:-

Capital structure of an organization refers to procurement of capital capital

structure including all the financial. Thus capital structures of an organization show(NOK) or through which sources raised.

Baroda dairy is a co-operative society and its shares are out listed in stock exchange.

However the shares are purchased by the milk societies who are easily become its

members. These societies are not paid dividend but get prices difference.

Particular year-2006

1. Authorized share capital 3,

00,00,000/-

2. Subscribed share capital 2,81,13,400/-

3. Reserve & other Fund

a. Reserve Fund 1,37,28,481/-

b. Other Fund 7,

13,59,836/-4. Loan From NDDB prospective plan 2, 45,62,070/-

The turn over of the company since last five years is given below

The turn over of Baroda Dairy had constantly grown since last

five years. The turn over is being given in the following table.

year Turn over achieved

2001-02 203.40 Crores

2002-03 230.00 Crores

2003-04 232.99 Crores

2004-05 257.84 Crores

2005-06 269.84 Crores


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The above table of turn over shows the alarm increase in the turn over where

in 2001-02 it was 203.40 crores where as in the very next year it has increase to 230

crores so this way very high increase than after in 2003-04 only 2 crores of incrementwas there which has reached to 232.99 crores and this way it is growing at the high

rate.the last record of 2005-06 was 269.84 crores. So this is how turn over has been in

the last five years.-: RATIO ANALYSIS:-

If relationship between various related items in these financial statement areestablished. They are provided useful clues to udge Accuracy the principal healthy and

ability of business to make profit these relations between two related items of financial

statements are known as ratio.

The use of ratio has become increasing popular during last few years only. Today ratiohas given such an important that anybody connected with the business terms to ratio.

1. GROSS PROFIT RATIO:-

This ratio includes the degree to which the selling of goods per units may declinewithout resulting in losses from the operation point of view. If department will also be

ascertaining behaviour the average percentage of mark up on the goods its maintained.There is no more for judging the gross profit ratio, therefore the evolution of the

business on its basis is a matter of judgment, and however the gross profit should be

adequate to cover operative expenses and to provides for fixed charges, dividend and

building of reserved

Gross Profit * 100

Gross Profit Ratio = sales 51, 20, 14, 483 *100 = 23.87%2003-2004 = 2, 47, 98, 89, 172

63, 14, 10, 477 *100 = 24.49%2004-2005 = 2, 57, 83, 92, 763

3, 92, 52, 47, 679 *100 = 22.00%

2005-2006 = 2, 67, 84, 30, 794

INTERPRETATION:-

This ratio usually expressed as a percentage ratio of 24.97 shows that for a sale of every

Rs. 100/- a margin of Rs. 24.49 is available from which operating expenses of businessare to be recorded the ratio shows whether the makeup obtain on cost of production i.e.

sufficient in this ratio. The ratio is increasing when gross profit margin in ratio is a sign

of good management. A low gross profit margin ratio is sign of higher cost of good

sales.


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2. NET PROFIT RATIO:-

The ratio is valuable for the purpose of training the over profitability of business and

shows the efficiency or otherwise of operating the business. It is the reserve of

operating ratio.

Net Profit * 100

Net Profit Ratio = Net Sales

47, 16, 598 * 100 = 0.19%

2003-2004 = 2, 47, 98, 81, 720

50, 80, 692 * 100 =0.20%

2004-2005 = 2, 07, 83, 92, 763

53, 63, 500 * 100 = 0.20%2005-2006 = 2, 69, 84, 30, 744

INTERPRETATION:-

This ratio is indicates what portion of sales revenue is left to the proprietors after all

operating expenses are met.In 2001-2002 the ratio is 0.19% but in 2002-2003 the ratio decreases this the .

comes in the ratio and so, the ratio differs. In order to have a better idea of profitability.

3. STOCK TURN OVER RATIO:-

It is important to ensure that the level of stock is keep as lower possible, with the needto fulfill customers order in time.

COGSStock Turn over Ratio = Avg. Stock

18878879168 = 43.90


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2003-2004 = 43000005

1850570614 = 43.282004-2005 = 42754941

1992889384 = 40.23

2005-2006 = 49536954

INTERPRETATION:-

This ratio is very important in judging the ability of management with which it can over

the stock. The higher the turn over ratio the more profitability in business.

4. CURRENT RATIO:-

Current ratio is also as working capital ratio as it is a measure of working available at aparticular time. The ratio is obtained by dividing current assets by the current liability.

It is a measures of short term financial strength of the business will be able to meet its

current liabilities as and when they nature.

Current Assets

Current Ratio = Current liabilities.

312015085 = 0.91

2003-2004 = 343495657326760007 = 0.988

2004-2005 = 371349836

380781998 = 0.92

2005-2006 = 414733383


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INTERPRETATION:-

The current ratio measures in the solvency of the company in the short term. The

constituents of the current assets are as important as the current assets themselves. Ahigh current ratio will have advance impact on the profitability of the organization.

5. DEBTORS TURNOVER RATIO:-

The ratio shows the number of days taken to collect the due of credit sales. It shows the

efficiency or otherwise of the collection policy of the enterprise.

Debtor + Bills receivable * 365 daysDebtors Turnover Ratio = credit + sales

42177060 * 365 = 6.20 days

2003-2004 = 1479889172

48322296 * 365 = 6.84days

2004-2005 = 2518392763

17540299 * 365 = 2.37days

2005-2006 = 2698430744

INTERPRETATION:-


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There are many up-downs in the company. The ratio is changed in a very large due to

increase in debtors turnover in that comparison sales are not much increase that how

much rupees we have to collect from the budget. It shows the relationship betweendebtors turnover to sales.

6. CREDITORS RATIO:-

This ratio shows the number of days within which we make payment to our creditorsfor credit purchase is obtained from creditors velocity.

Creditor + Bills payable * 365 days

Creditors Ratio = Annual Purchase

3928196 * 365 = 6.76 days

2003-2004 = 1882988781

18336438 * 365 = 1.54 days2004-2005 = 1854966392

89213907 * 365 = 16.20 days2005-2006 = 2002057632

INTERPRETATION:-

The longer the credit period achieved the better because delays in payment means that

the operation of the company is being financed interested free by suppliers of funds.The ratio is decreasing year by year due to increasing in creditors turnover creditors

ratio is to be calculated on the basis of creditors turnover.

7. TOTAL ASSETS TURNOVER RATIO:-

The amounts invested in business are invested in all assets jointly and sales are affected

through them to earn profit. It shows the relationship between sales to fixed assets.

COGS

Total Assets Turnover Ratio: - Net Assets

1887744689 = 14.48

2003-2004 = 130364292


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1946982286 = 11.982004-2005 = 16256690

2103183065 = 13.42

2005-2006 = 156712814

INTERPRETATION:-

This ratio shows that in investment in fixed assets is very low and Baroda dairy is doing

well because of higher level of sale and well depreciated assets.

8. PROPRIETORY RATIO:-

This ratio shows proportion of proprietors funds to total assets employed in the

business. The proprietor fund consists of share capital and reserve and surplus.

Net Worth

Proprietary Ratio = Total Assets

102956401 = 0.222003-2004 = 463537237

1086076364 = 0.212004-2005 = 569678557

113193717 = 0.20

2005-2006 = 557852670


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INTERPRETATION:-

Here is should be noted the ratio not increased of decrease at lower company maintain

their net worth and total assets. The higher of the ratio, the stronger as the financialposition of the enterprise as the signifies that the proprietors have provided larger fund

the purchase the assets.

-: PROFITABILITY AND DIVIDEND DISTRIBUTION:-

There is a provision of dividend distribution Baroda dairy is a co-operative body and

not a public limited company. If profit carried, it is distributed as price difference in

ratio of milk supply of Baroda dairy keep balance. Profit distribution of Baroda dairy as

per co-operative act and by laws.-: RIGHT TO ISSUE, BONUS, CO-OPERATIVE BONUS, FUNDS, RAISING

THROUGH PUBLIC DEPOSITE, ETC.:-

Baroda Dairy Is A Co-Operative Organization. It Does Not Issue Right Or Any Other

Public Issue. Therefore There Is No Question Of Any Bonus.

Deposit from milk societies and staff are invited share of Baroda dairy. Baroda dairyhas fixed deposits from mandals about 850 mandal has fixed deposit of 2 to 3 crores.

BARODA DAIRY does not have any other source of raising fund from its profits.

For any undertaking it is financial by NDDB or self financing.

-: ANY SPECIAL FINANCIAL CHARACTARISTICS OF THE UNIT:-

Baroda dairy is a special unit so they require long term requirement NDDB giveslong term loan at the interest rate of 12%.

The organization does not sell his share in the stock market instead of he gives hisshare back to the union.

Shareholders can not sell his share in the stock market instead of he gives his shareback to union.

It issue equity share to the prospective member whenever they decide to buy a share.


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The distribution of profit is done on the basis of govt. less & sub levels. Because of the

regulation GPS, financial leverage has no score. The turn over of the company since

last five years is given below

The turn over of Baroda Dairy had constantly grown since last

five years. The turn over is being given in the following table.

year Turn over achieved

2001-02 203.40 Crores

2002-03 230.00 Crores

2003-04 232.99 Crores

2004-05 257.84 Crores

2005-06 269.84 Crores

The above table of turn over shows the alarm increase in the turn over wherein 2001-02 it was 203.40 crores where as in the very next year it has increase to 230

crores so this way very high increase than after in 2003-04 only 2 crores of incrementwas there which has reached to 232.99 crores and this way it is growing at the high

rate.the last record of 2005-06 was 269.84 crores. So this is how turn over has been in

the last five years

ORGANISATIONAL STRUCTURE OF PRODUCTION DEPARTMENT

Managing

director

Production

manager

Assistance

mangerCommon shift

superintendent

Officer (raw

milk receivingdock)

Officer process

section

Officer butter

sectionOfficer pouch

packing

Officer ghee

section

Technical

officer

Technical

officer

Technical officerTechnical officer Technical

officer

supervisoroperator operator operator operator

operator worker worker worker worker


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ORGANISATIONAL STRUCTURE OF HUMAN RESOURCE

DEPARTMENT

ORGANISATIONAL STRUCTURE OF FINANCE DEPARTMENT

worker

Managing

director

Assistance

general manger

Superiorpersonnel

Welfare officer Superintendent(telephone)Superintendentadministration

Officer

(Administration)

Junior officer Sanitation

Supervisor

Senior telephoneoperator

Managing

director

Assistance generalmanager

Superintendent

(Audit)Superintendent

(Finance)

Superintendent

(Taxation)

Senior officer Senior officerSenior officer


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CONCLUSION

I suddenly learnt a lot and a quite better of as far as practical knowledge related to

baroda dairy. I learnt the difference between the article and practical knowledge. I

understand the real field out of my class room. the teoritical knowledge and practicalknowledge are two side of a win. One of is incomplete to without the other.

At least we would like to conclude by mentioning that our experience at baroda district

co-operative milk producers union limited (Baroda Dairy) was realy good.

And for this golden experience and golden opportunities we would like to thankthe Baroda Dairy Staff who has helped us so nicely and so enthusisticaly. At least we

woud end our project report by greeting all our best wishes to Baroda Dairy for todayand always.

Workers Typist

(Marketing)

hot summer1

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