AN INTERNSHIP TRAINING OF AAVIN MILK

(With Reference to AAVIN MILK, TIRUNELVELI)

An internship training report submitted to the

MANONMANIAM SUNDARANAR UNIVERSITY

In partial fulfillment of the requirements

For the award of the Degree of

MASTER OF COMMERCE

BY

R. ARONE FRANKLIN

(Reg. No: 311303)

Dr.B.REVATHY, M.Com. M.Phil, B.Ed., Ph.D., DCA., MBA.,

Guide & Supervisor

DEPARTMENT OF COMMERCE

SCHOOL OF BUSINESS STUDIES

MANONMANIAM SUNDARNAR UNIVERSITY

TIRUNELVELI – 627 012

MARCH 2012

R.ARONE FRANKLINReg .No. 311303Master of CommerceDepartment of CommerceSchool of Business StudiesManonmaniam Sundaranar UniversityTirunelveli – 627 012.

DECLARATION

I hereby declare that the internship training report entitled AN INTERNSHIP

TRAINING OF AAVIN MILK (With Reference to AAVIN MILK, TIRUNELVELI)

submitted to the Manonmaniam Sundaranar University in partial fulfillment for

award of the degree of Master of Commerce is the original work done by me, under

the supervision and guidance of Dr.B.REVATHY, and that it has not previously

formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or

any other similar title.

Place: Tirunelveli, Candidate’s Signature

Date: R. ARONE FRANKLIN

Dr.B.REVATHY, M.Com. M.Phil, B.Ed., Ph.D., DCA., MBA.,

Associate Professor,Department of CommerceSchool of Business StudiesManonmaniam Sundaranar UniversityTirunelveli - 627 012.

CERTIFICATE

This is to certify that the internship training report entitled AN

INTERNSHIPTRAINING OF AAVIN MILK (With Reference to AAVIN MILK,

TIRUNELVELI) is a bonafide record of training underwent by the candidate,

Mr.R.ARONE FRANKLIN [Reg No.311303] in partial fulfillment of the

requirements for the award of the degree of Master of Commerce of Manonmaniam

Sundaranar University, Tirunelveli, during the academic year 2011 – 2013. The

report is original in character and has not formed the basis for award of any other

Degree, Diploma, Associateship, Fellowship or any other similar title in this or any

other university.

Place: Tirunelveli,

B.REVATHY

Date: (Guide and Supervisor)

COUNTER SIGNED

ACKNOWLEDGEMENT

I extent my sincere thanks to Dr. C. THILAKAM, The Head, Department of

Commerce for her constant encouragement and motivation and for her words of

appreciation.

I am extremely thankful to my guide and supervisor, Dr. B. REVATHY,

Associate Professor, Department of Commerce, for her valuable guidance and kind

co-operation for the completion of the internship training report.

I wish to record, not out of formality but not of deep feeling of indebtedness,

my sense of gratitude to all the staff members Mr. A. ARUL KAMAL RAJ, Ms. M.

NITHYA, Ms. N. SANKARESWARI, and Mr. S. DANI ROMAN SINGH of our

Department of Commerce, without whose valuable suggestions and guidance at every

stage of the study, this present report would not have seen the light of day and would

like to special thanks Mr.A.ARUMUGAM for helps to complete my report

Last but not the least I thank the ALMIGHTY for his abundant grace and

blessings in all my endeavors.

R. ARONE FRANKLIN

LIST OF ABBRIVIATION

CONTENTS

DECLARATION

CERTIFICATE

ACKNOWLEDGEMENT

CHAPTER TITLE PAGE NO

I INTRODUCTION 1

II PROFILE 3

III FINDINGS AND SUGGESTIONS 21

BIBLIOGRAPHY

CHAPTER I

INTRODUCTION

Milk is nutrient rich food that provides a large number of nutrients relative to

the calories consumed Milk is delicious as a beverage and can be used as a base for

other drink such as hot chocolate.

The Milk of domesticated animals is also an important food source for humans.

Most Milk consumed in Western countries is from cows; other important sources

include sheep, goats, water buffalo, and camels. Milk is essentially an emulsion of fat

and protein in water, along with dissolved sugar, minerals (including calcium and

phosphorus), and vitamins, particularly vitamin B complex. Commercially processed

cow's Milk is commonly enriched with vitamins A and D.

Many countries require pasteurization to protect against naturally occurring

and artificially introduced microorganisms. Cooling further prevents spoilage

(souring and curdling). Fat from whole Milk (about 3.5% fat content) can be removed

in a separator to produce cream and leave low-fat Milk (1–2% fat) or skim Milk

(0.5% fat). Milk is usually homogenized, forced under high pressure through small

openings to distribute the fat evenly. It may also be condensed, evaporated, or

dehydrated for preservation and ease of transport. Other dairy products include

butter, cheese, and yogurt.

WORLD WIDE

June 1 is the world Milk day as announced by Food and Agricultural

Organization (FAO). Milk helps to children to promote the growth of their muscles,

bones, teeth, and brain.

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Pediatricians and nutrientionist agree that the balanced diet with a proportion

of the necessary carbohydrate, and proteins, moreover , the high content of vitamin D

in Milk is key component to Milk bone structure, bone recovery and bone health. In

addition help to maintain the health of the teeth.

Functions of Cooperative Milk Producers Union

1. Establishment of chilling centers

2. Formation of new Milk routes to collect Milk produced by the members of the

societies.

3. Collection of Milk from societies, process and pack in modern dairy.

4. Supply of quaLitery Milk.

5. Fixation of procurement and selling price of Milk.

6. Supply of inputs to the members of the societies.

Nourishment of Milk

Milk contains calories, proteins, carbohydrate, fat, saturated fat, cholesterol,

vitamin A, vitamin C, foliate, calcium, magnesium, zin C, phosphorus, iron.

2

CHAPTER 2

PROFILE

INTRODUCTION

The dairy development was established in 1958 in Tamilnadu. The

administrative and statuary controls over all the Milk cooperatives in the state were

transferred to the dairy development department on 1.8.1965. The commissioner for

Milk production and dairy development was made as the functional registrar under

the Tamilnadu Cooperative Societies Act. With the adoption of “anand pattern” in the

state of Tamilnadu, Tamilnadu Co-operative Milk Producers’ Federation Limited was

registered in the state as on 1st February 1981.

The commercial activities of the department such as Milk procurement,

chilling, processing, packing and sale of Milk to the consumer etc., hitherto dealt

with by the Tamilnadu Dairy Development Cooperation Limited, were transferred to

the newly registered Tamilnadu Co-operative Milk Producers’ Federation Limited,

popularly known as “Aavin”.

Tamilnadu Co-operative Milk Producers’ Federation Limited was constituted

on 1st February 1981. Federation is procuring, processing and marketing of Milk and

Milk products federation has implemented the dairy development activities under

operation flood programmed with a financial and technical assistance of national

dairy development board. Chennai metro is having four dairies. Milk procurement,

processing and distribution are being attended by the district unions in the respective

areas.

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In the wake of liberalization policy, private dairies have also entered into the field of

the honorable Chief Minister of Tamilnadu High priority has been given for

improving the performance of Milk co-operatives by adoptinvg a symmetric

approach in and proper sytratergy in Milk co-operatives.

Significant achievement has been made by Milk producers’ cooperative

societies, unions and federation in the state of Tamilnadu.

The cattle population in India is approximately 15% of total cattle population

in the world. India stood at no.1 position in Milk production. Tamilnadu is one of the

leading state in Milk production. The Milk production in Tamilnadu per day is

145.88 lakh Literers.

Objectives of the Dairy Development Department

1. Assure a remunerative price for the Milk produced by the member of the

Milk producers’ co-operative societies through a stable, steady and well

organized market support.

2. Distribution of quaLitery Milk products to the consumers at reasonable

price.

Keeping these objectives in mind, a number of activities are undertaken by the dairy

development department. Provision of free veterinary health cover to all animals

owned by the members of Milk cooperatives, implementation of artificial

insemination program, supply of balanced cattle feed and inculcation of farmers with

modern animal husbandry methods and practices.

4

All activities, which are essential for the up gradation of the mitch animals and

improving their productivity in the long run, have been undertaken.

Provision of necessary infrastructure faciLiteries for marketing Milk

products and supply of quaLitery Milk to the consumer has been made by way of

establishing new chilling centers, pasteurization plants and adoption of modern

processing system.

Center of Aavin in Tamilnadu

Tirunelveli is the main branch of Milk production for preparing dairy products.

Four small branches:

Under tirunelveli, there are four small branches which are located as follows

1. Sankarankoil

2. Vallioor

3. Shathankulam

4. Kovilpatti.

These are also called as “Chilling centers”

Collection of Milk:

Raw Milk:

The Milk is collected from many villages. The Milkers give their Milk through

dairy form situated in their villages. Therefore both societies and Milk givers can

earn

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money through some profits. The collection of Milk which directly gets from the

Milk giver is known as the “Raw Milk”. The Milk can be collected at morning and in

the evening.

Dairy:

Processing faciLitery: The Milk received at the chilling centers are brought to

the dairy and along with the Milk received at the dairy, Milk is processed for keeping

the quaLitery. Types of Milk such as standardized Milk, high fat, high protein Milk,

are being prepared to the requirements of the consumers; the surplus fat is converted

into ghee.

The whole Milk surplus is dispatched to metro dairies and feeder balancing

dairies viz Madurai, Erode, and Trivandrum. The high fat and high protein Milk are

packed in 250ml and 500ml sachets. In the dairy Milk ghee, ice-cream flavoured

Milk, rose Milk, butter Milk etc are being manufacturing and marketed. The

processing capacity of main dairy, kovilpatti Chilling Center, valliyure Chilling

Center, sakarankoil Chilling Center ,and sathankulam Chilling Center are 1,00,000;

10,000; 20,000; 50,000; 10,000 Literer Per Day respectively.

Transporting:

The collected raw Milk from the above branches dairy forms is chilled at about

40 C and then, the chilled Milk is transported to tirunelveli main depot securely.

Transporting vehicle may have the double layered freezer attach with them.

Therefore the Milk securely comes to the depot without any air pollution.

6

Process of Milk:

Processing Hall

In Tirunelveli depot, processing the Milk is of two types as described below

The process of pasteurization is carried out. Then, transported Milk is

streamed at about 71OC and then chilling at 4OC to kill harmful bacteria. Then the

bacteria free Milk is stored in silo (Large Milk Storage Tank) at 6OC. These Milk is

then packed in ¼, ½, 1 Literer pockets and then stored of about 7OC to 8OC. Finally

these pocket Milk are distributed to various market places for sale.

7

Homogenization

Homogenization is a process that reduces the size of fat globules by forcing

pressurized hot Milk through small whole causing turbulence,to break up the larger

fact globules so that they remain suspended rather than separating in a cream layer at

the top. Homogenization effects the development of atherosclerosis, coronary, heart

disease, Milk allergy, and Diabetes.

Pasteurization

It is a process by which the disease causing bacteria in the Milk are

destroyed without losing its nutritive values. The Milk is boiled at 600c for thirty

minutes and cooled quickly.

Whatever the method is used for preservations of food, cleanliness and general

sanitary conditions are imported.

To Access the QuaLitery of Milk

1. Reduction Test

It access whether the bacteria are present or not in the Milk. If bacteria

are present it kills the bacteria in that Milk.

2. MBR Test (methylene blue dye)

Lactase test

It is used to determine the lactic acid concentration in Milk and Milk

product since its value has to be kept under fixed low limits.

Chloride test

It is used to measure the quaLitery of salt in different dairy products.

8

Ammonia Test

It is used to measure the ammonia concentration and will determine the

quaLitery the Milk.

Percentage of fat in Milk

The fat content in the Milk is shown in the following table

Table 1

Percentage of fat in Milk

Milk Fat percentage SNF percentage

Toned Milk 3.0 8.5

Standardized Milk 4.5 8.5

Double toned Milk 2.0 9.0

According to the fat and SNF content the type of Milk explained in the above

table are packed in the blue, green and red color pockets respectively.

High protein Milk fat 3.0%; SNF 9.0%.

High fat Milk fat 5.0; SNF 8.5%.

9

Different products:

Skimmed Milk powder

Aavin flavoured Milk

Toned Milk

Sugar free ice cream 

Milk sweet

Butter

Aavin mango drink

Aavin curd

SKIMMED MILK POWDER

Aavin manufacture and market ISI quaLitery Skimmed Milk Powder in 500

gms carton and 1 kg polypack. It is manufactured in all the product dairies viz Erode,

Salem, Krishnagiri and Madurai and marketed throughout the State..

AAVIN FLAVOURED MILK

Aavin flavoured Milk is manufactured in bottles and tetrapak. It is  in 5

flavours (200 ml) 

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Strawberry

Pista

Cardomum

Chocolate

Pineapple

TONED MILK

UHT Milk  is exclusively manufactured by Salem Dairy. It comes in 1

Liter and 500 ml package. Both Standardised (fat 4.5% and SNF 8.5%) and toned

Milk (fat3% SNF 8.5%) are available in this package. It is called Tetra Brik.The shelf

life of this product is 120 days. Salem Union is also manufacturing 500 ml UHT

package Milk which is called tetra fino. It is toned Milk (fat 3% SNF 8.5%). The

shelf life of this product is 90 days.

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SUGAR FREE ICE CREAM 

Aavin Ice creams are very popular in the metro city Chennai and sub urban.

There are 25 flavours moderately priced available in all Milk parlours and Franchise

Retail outlets which are more than 150 in number. 

Aavin introducing   in cups for health conscious consumers. It is calorie

conscious product. Aavin ice cream is very well accepted by all segment people due

to its high quality. The calorific value of Aavin ice cream is 116 Kcal per 100 ml and

it contains 5g Fat, 3.1g Protein, 5.4 gm Carbohydrate, 0.6 g minerals and 8 g added

sugar. Due to high content of sugar, diabetic and calorie conscious people are

deprived of taking ice cream and hence it is highly essential to develop alternate

product to cater the need of all the people.Hence Aavin has proposed to introduce

Sugar- free ice cream. It contains unique Sucralose at 320 ppm level which is an

artificial sweetner, derived from cane sugar. It does not affect the blood sugar level.

Characteristics:

It is safe for children and pregnant women. It is non toxic, non-carcinogenic.

The majority of ingested sucralose is excreted unchanged.

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It is approved by United States Food and Drug Administration and also

approved by Prevention of Food Adulteration Act – 1955 (allowed maximum 750

ppm level for Milk Product based sweets)

It is highly stable even at 230oC unlike other artificial sweeteners.

Energy Value:

The Calorific value of the sugar free ice – cream is only 80.0 Kcal per 100 ml.

It contains all the ingredients as in ice cream but only 16 mg of Sucralose is available

instead of 8000 mg sugar to get the same sweet taste. It is important that Sucralose

content is 500 times lesser than sugar.

Since it is less calorific value and also as of no sugar in the product, it is so

safe for diabetics and calorie conscious people.

MILK SWEET

Aavin has now entered in Milk sweet division and periodically launch newer

varieties. The recent one is Mysurpa in 500 Gms and 1 Kg packings. These sweets

are manufactured in very high highly quality standards. Aavin also manufacture

Kalakanth & Gulabjamoon  etc

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 BUTTER AND CHEESE

Plain Butter and Cheese 500 Gms is being manufactured in feeder balancing

dairies and marketed all over the State.

AAVIN MILK KHOA

Aavin millk khoa is king of all sweets. It is more dearer to the people of

Chennai. It is available in small packing like 25 gms, 50 gms and 100 packets and

also in 500 gms and 1 Kg bowls

AAVIN MANGO DRIN

Aavin mango drink  (200 ml ) is popular among of its kind. It is packed in

tetrapak package. It has a shelf life of 180 days. It is manufactured in Salem dairy.

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AAVIN CURD

Aavin curd is superior in quality and hygienically manufactured in 

Ambattur Product Dairy , packed in heat sealed cups . It is available in all the leading

super markets and Aavin parlours and Franchise retail outlets. The Content of it 200

Millie Liters.

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AAVIN MILK PRICE LIST

Table

PRICE LIST

Year Price in (Rs)

2001-2002 17.49

2002-2003 15.79

2003-2004 17.26

2004-2005 20.56

2005-2006 21.59

2006-2007 22.10

2007-2008 21.64

2008-2009 22.00

2009-2010 (up to June) 22.30

2010-2011 (up to Dec) 24.00

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MILK SELLING PRICE:

Government of Tamilnadu has also revised the selling price of Toned /

Standardised / Full Cream Milk in sachets and in AVM units the details of it are

depicts in the following table:

New price chart (With Effect From 19-11-2011)

AAVIN MILK: TARIFF STRUCTURE                                                         (in Rs) 

Variety Fat

(%)

SNF *

(%)

Monthly Card ** Maximum Retail Price

Existing rate Revised

rate

Existing rate Revised

rate

Toned Milk 

1 Liter

3 8.5 17.75 24.00 20.50 27.00

Tone Milk 

500 ml

3 8.5 8.90 12.00 10.25 13.50

Standardized

Milk 500 ml

4.5 8.5 11.00 14.50 13.00 15.50

Standardized Milk 50

0 ml  

thro AVM

4.5 8.5 10.75 14.50 10.75 15.50

Full cream Milk 500

ml

6.0 9.0 12.00 16.50 14.00 17.50

Double toned Milk 500

ml

1.5 9.0 9.25 11.50 11.00 12.00

Note:

Maximum retail price is followed in respect of Milk sold to non card holders

through depots, retailers or Automatic Vending Machines (AVMs)

17

Aavin products

MARKETING:

At present this union is marketing 60,000 LPG approximately in the

Tirunelveli and thoothukudi district through its agents, booths and parlours,

Table 4

SOURCE OF MARKETING

SOURCE NUMBERNo of agents 86Association 17

Private institutions 15Govt.institutions 8

Societies 8Milk booths 12

Milk parlours 14No of Milk distribution routes 14

The number of agents functioning in the state are of, the number of association

is 17, Private Instructions 14, Government Instructions8, Societies 8, Milk Booths 12,

Milk Parlours 14, and the number of Milk distribution routs is 14. The mass network

of distribution helps in the marketing of Aavin products.

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Milk production:

Due to the technology development veterinary department in India leads to

receive more Liters of Milk to main depot. The Milk production depends on the

collection of Milk and its quality. The following table shows the rapid growth in Milk

production during three years from 2008 – 2011.

Table – 5

PRODUCTION OF MILK

Year Production (LPD) Increase/decrease

2008-2009 733812 -

2009-2010 771620 +37808

2010-2011 760210 -11410

The above table shows the Aavin Milk production for the three years from

2008 – 2011. During the year 2008 – 2009, the company produced 733812 Liters per

day. In the next year the company has produced 771620. Comparing with the

previous years, the production of Milk increased up by 37808 Liters Per Day. In the

next year 2010 – 2011, the Milk production reduces by 11410 Liters on comparing to

that of Previous Year.

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Milk sales Statement

The Milk sales mainly depend on the Milk production. The following are the

sales of report for the Milk sales for three years.

Table – 5

SALE OF MILK

Year Sales (LPD) Increase/decrease

2008-2009 585567 -

2009-2010 660034 +74467

2010-2011 688063 +28029

The above table shows that Milk sales increased rapidly between the different

years. The increase of turnover Per Day of Milk in 74467 Liters in 2009-2010.

When compared to that of during 2008 – 2009. But the same has decreased by

28029 Liters during 2010 – 2011 the administration has to analysis the reasons for the

reduction of turnover, ass the adversely affects the profitability and the efficiency.

Stringent efforts are required to improve the turnover and to ensure a steady

progress in their performance. This leads to get more profit of the sales department of

Aavin.

20

CHAPTER 3

MAJOR FINDINGS AND SUGGESTIONS

FINDINGS

The Aavin dairy development has been undertaken by the government. Thus, It

offers employment opportunity for mass of our population, both directly and

indirectly. The Aavin products are pure and quality of assured.

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BIBILIOGRAPHY

Encyclopedia

Wikipedia

Websites

www.Aavin.com

www.Aavinnellai.com

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