DAIRY PRODUCTION

A mini project report submitted in partial fulfilment for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

By

PAVAN KRISHNA G

( Regd No: 13KQ1E0038 , A-SECTION )

Under the esteemed guidance of

DR.V.VENKATESWARA RAOProfessor

DEPARTMENT OF MANAGEMENT STUDIES

PACE INSTITUE OF TECHNOLOGY AND SCIENCES

(AN ISO 9001:2008 CERTIFIED INSTITUTION)

(APPROVED BY AICTE,AFFILIATED TO JNTUK,KAKINADA)

2013-2015

CERTIFICATE

This is to certify that the mini project report entitled “ongole dairy production” is a bonafide

work carried out by “pavan krishna G , Regd No: 13KQ1E0038 , A-Section” who carried

out the project under my supervision in partial fulfilment for the award of degree of Master Of

Business Administration from JNTUK, Kakinada during the academic year 2013-2014.

Signature Signature

DR.V.VENKATESWARA RAO, of candidate

PROFESSOR

.

INTRODUCTION

One must have a contemporary understand of this dynamic world to survive

or proper therein. Never in the past has the role of manager in India as crucial and

exciting as now. The ongoing economic reforms programme has created infinite

opportunities. There has been an increase in milk income gradually development have

broadened the knowledge of consumers. They have now become choosy resulting in

winners & looser at the same time winners those who monitors needs, identifies

opportunities and create value. It is the market place not the factory that

ultimately determines which company will succeed. Marketing is practiced not only by

manufacturing concern & their channel members but all kinds of individuals and

organization. No politician can get the required votes to win and no ‘ resor t ’ the

needed tour is t to f lour i sh wi thou t developing and carry ing out the

sound marketing plans. Authentic market practice is not the art of selling what you

make as much as knowing what to make. It is the art of identifying and understanding

customer’s needs and coming up with solution that satisfies them and produces riches

for firm’s profitability. As we all know, future is always uncertain. More precisely when

there is volley of brilliant competitors and each wants to be the market leader. So in the

light of intense competition satisfaction through product innovation maintaining the

standard quality their in, failing which no amount or deal of promotional

measure or scheme can compensate at length. Competitive forces have compelled the

companies to focus on specific segment of the market with frequent product innovation

and rather new products and launching thereof with greater confidence. The present

study gives special emphasis on the various strategies to be adopted by PRAKASAM

DISTRICT MILK PRODUCER COMPANY LTD. The ent i re s tudy has been

d iv ided in to chapters and further subdivided into segments from each

dealing with a separate aspect in a simple and lucid style and clarification has

been given top priority throughout the project.

OBJECTIVE OF THE STUDY

The most important objective of the project is that it is obligatory on the part of the

student of M.B.A. programme to undergo the convention of the business

administration in the partial fulfillment of M.B.A. degree besides, project

study is a sort of practical training of eight weeks thus the students are

benefited by undertaking such a study as it helps organization in overcoming

administrative, financial, marketing and other problems whatever they may be

interested in for the sake of simplicity the objectives of this study can be

classified under three heads:

PRINCIPAL OBJECTIVES

To study the Distribution process of milk.

To find out the various strategies to be adapted by PRAKASAM to counter milk

sales of Heritage in PRAKASAM DISTRICT.

To find various ways to increase Praksam milk sales in PRAKASAM DT.

To discover the various factors which hurdles people to take PRAKASAM milk.

To identify various factors which motivates people to use Prakasam milk.

To discover the main reason beyond shifting of customers from

Prakasam milk to other milk.

The other objective is to know about the customer satisfaction level associated

with the product and the customer preference level.

To increase customer satisfaction and recapture the market share by fulfilling the

customer needs.

To study the factors affecting the consumption pattern.

METHODOLOGY

COLLECTION OF DATA

The data was collected from two different sources

PRIMARY DATA:

The primary data has been collected with the help of a questionnaire, answers directly

given by PRAKASAM DT MILK PRDN COMPANY LTD. CEO & Staff.

People we met:

CMD - MR.M.SIVA RAMAIAH Garu

MARKETING DPT G.M. – A.B.MALLESWARA RAO

FINANCE DPT – MR. PARAMESWARAIAH

ESTABLISHMENT ADMIN – MR. NAGESWARA RAO

SECONDARY DATA:

Secondary data is what the researcher collects from different sources. It also helps to

get elaborate information to do the research.

Secondary data has been collected from

Internet

Company annual reports

Govt. Publications

Past Records and Files

Journals and periodicals pertaining to different brands and segments of milk.

 

DAIRY INDUSTRY IN INDIA

Indian dairy Industry - a profile

The Dairy Industry in India made rapid progress, particularly during the last two

decades. Today, INDIA occupies first position in milk production in the world,

surpassing the U.S. Today, India is 'The Oyster' of the global dairy industry. It offers

opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the

world's largest and fastest growing markets for milk and milk products. A bagful of

'pearls' awaits the international dairy processor in India. The Indian dairy industry is

rapidly growing, trying to keep pace with the galloping progress around the world. The

liberalization of the Indian economy beckons to MNC's and foreign investors alike. The

credit definitely goes to operation flood, which has played a key role in the development

of dairying.

The employment potential of Indian Dairy sector is substantial. This sector provides

additional income and generates job opportunities for 180 million farmer families. More

than 70% of marginal farmers and labourers maintain dairy animals to supplement their

incomes.

In India, there are 10.1 million farmers who are members of 77,000 village Dairy Co-

operative Societies, each of which is affiliated to one of 170 district and regional Co-

operative Unions, which in turn are a part of state Co-operative unions, which in turn

are apart of a state Co-operative Marketing Federation. The Co-operative sector has

contributed significantly for the success of White Revolution in India. There are more

than 97,000 milk Co-operative Societies in 264 districts.

This sector is growing at the rate of 6.5% per annum. The first large scale and

systematic breakthrough in Dairy operation milk producers union was at ANAND

(ANAND MILK UNION LIMITED) , Gujarat abbreviated to “AMUL” which in

vernacular means HIGHLY VALUABLE or “BEYOND ALL PRICES”.

INDIAN DAIRY CORPORATION (IDC):

The INDIAN DAIRY CORPORATION (IDC) was set up under companies Act on

13th Feb 1970. It is a government of India under taking. The immediate need to set up

IDC was to handle the “OPERATION FLOOD”. It became mainly a financing – cum

promotional agency of central government.

OBJECTIVES:

To promote dairy industry in the country.

To assist the state government and other organization including co-operative

societies interested in the promotion of dairy industry to meet the requirement of

milk & milk products.

To provide a package of technical inputs for enhancement of milk production.

Resettlement of city based cattle in the rural areas.

To assist in expanding the capacity and operation of existing dairies in big cities

and rural areas.

To assist development of allied industry required to meet the needs of dairy

development.

DAIRY INDUSTRY IN ANDHRA PRADESH:

The milk producers have faced a lot of problems in the process of production and

marketing of milk namely improper transport facilities, poor technology and absence

organized system of processing, marketing and pricing. It was at this context, that the

Govt. of A.P. has viewed to continue a ‘DAIRY DEVELOPMENT CORPORATION’

to safeguard the interests of milk producers and ensuring adequate supply of flush milk

at a reasonable price to the urban consumers. As a result the ‘APDDCF’’ came into the

existence on 2nd April, 1974. A.P. has an excellent potential for milk production with the

progressive farmers who are responsive to the new technology and scientific practices.

A.P. DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION (APDDFC)

APDDFC was constituted on 2nd April in 1974 with an aim to implement OPERATION

FLOOD – 2 programme through active involvement of producers in organizing milk

production, procurement, processing and marketing a three – tier co-operation structure

as per the national policy of government of India. The “Three – Tier” system consists of

primary unions at district milk shed level and federation at state level. Indian Dairy

Development Corporation owns the responsibility of implementation of operation flood

programmes, which provides money assistance of up to 70% towards loans and 30% as

subsidy.

THE CO-OPERATIVE MILK PRODUCERS UNION IN A.P.:

Sri Vijaya Visakha Co-operative Milk Producers Union,Vizag.

The Godavari Co-operative Milk Producers Union, RAJAHMUNDRY.

The Krishna District Co-operative Union, VIJAYAWADA.

The Guntur District Co-operative union, VADLAMUDI.

The Prakasam District Co-operative union, ONGOLE.

The Nellore District Co-operative union, NELLORE.

The Chittoor District Co-operative union, CHITOOR.

The Cuddapah District Co-operative union, PRODDUTUR.

The Kurnool District Co-Operative union, KURNOOL.

The Nalgonda District and Co-operative Union, HYDERABAD.

Medak District and Co-operation Union, MEDAK.

COMPANY PROFILE

Prakasam Milk Producer Company Limited is a Private Company incorporated on 13 February 2013. It is classified as Indian Non-Government Company and is registered at Registrar of Companies, Hyderabad. Its authorized share capital is Rs. 30,000,000 and its paid up capital is Rs. 14,699,700. 

Prakasam Milk Producer Company Limited's Annual General Meeting (AGM) was last held on 04 November 2013 and as per records from Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 04 November 2013.

Prakasam Milk Producer Company Limited's Corporate Identification Number is (CIN) U15122AP2013PTC085714 and its registration number is 85714. Its registered address is ONGOLE DAIRY, KURNOOL ROAD PRAKASAM DISTRICT, ONGOLE - 523002, Andhra Pradesh INDIA. 

There are 15 directors/authorized representatives of Prakasam Milk Producer Company Limited. Current status of Prakasam Milk Producer Company Limited is - Active.

Corporate Identification Number U15122AP2013PTC085714

NamePRAKASAM MILK PRODUCER COMPANY LIMITED

RoC RoC-Hyderabad

Registration Number 85714

Company Category Company limited by shares

Company Sub Category Indian Non-Government Company

Class of Company Private Company

Authorised Capital (in Rs.) 30,000,000

Paid up capital (in Rs.) 14,699,700

Number of Members(Applicable only in case of company without Share Capital)

0

Date of Incorporation 13 February 2013

Address 1 ONGOLE DAIRY, KURNOOL ROAD

Address 2 PRAKASAM DISTRICT

City ONGOLE

State Andhra Pradesh

Country INDIA

Pin 523002

Whether listed or not Unlisted

Date of Last AGM 04 November 2013

Date of Balance sheet 04 November 2013

Company Status (for eFiling) Active

WHAT IS MILK?

Milk may be defined as the whole, fresh, clean, lacteal secretion obtained by

the complete milking of one or more healthy milky animals, excluding that obtained

within 15 days before or 5 days after calving or such periods as may be necessary to

render the milk practically colostrums-free and containing the minimum prescribed

percentages of milk fat and milk-solids-not-fat. In India, the term 'milk', when

unqualified, refers to cow or buffalo milk, or a combination of the two. 

CHEMICAL COMPOSITION OF MILK (%):

 Sl.N

o. Species

 Wat

er

 Fat  

 

 Prote

in

 Lacto

se

 As

h

 1  Cow   86.6  4.6  3.4  4.9  0.7

 2  Buffalo

es 84.2   6.6  3.9  5.2  0.8

DEPARTMENTS IN PDMPCL:

1. Milk Procurement and input section.

2. Purchase Department.

3. Production Department.

4. Administration Department.

5. Finance Department.

6. Marketing Department.

7. Vertianary Department.

PRODUCTION DEPARTMENT:

Production department is the main department wherein the raw material is

converted into finished into products. At PDMPCL production department is well

planned & adequately equipped manufacturing set up where the entire necessary

infrastructure is available. The quality of the product is also dependant on the

production procedure.

In PDMPCL the raw milk is processed to form the good quality of milk.

During the processing the milk is differentiated depending on the contract of FAT &

SNF (Solids Not Fat)

The different types of milk different in quality are

TYPES OF MILK FAT SNF

Full Cream Milk 6% 9%

Toned Milk 3% 8.5%

Standardized milk 4.5% 8.5%

Full Cream Milk 6% 9%

OBJECTIVES OF THE PRODUCTION DEPARTMENT:

1. Maintain the standard quality of the product.

2. Keep the customer satisfaction by qualified products.

3. Cleanliness.

FUNCTIONS OF PRODUCTION DEPARTMENT:

1. Chilling the milk.

2. Pasteurizations of milk.

3. Package & store the milk in the stores at 4°C

FLOW CHART OF PRODUCTION PROCESS

COLLECTION OF MILK

CHILLING OF RAW MILK

CHILLED MILK STORAGE

PASTEURIZATION

STANDARDIZATION

PACKING

STORAGE

QUALITY CONTROL

Quality control is an essential and most important department for any manufacturer. Todayevery organization has efficient quality control system.Quality control is depend upon only practical (Survey Analysis and Right Procedure).In D.U.S.S. Ltd. LUCKNOW at reception point of milk from different societies (ProducersVillagers) Milk is collected and basic test are carried out quickly after cleaning it is send for further processing. Finally after pasteurization three type of milk obtain that is Full creammilk. Toned Milk, Janta Milk.Milk procedure out through some stages----------------------

1. ORGANO LEPTIC TEST –  It passes through three stages this is the first type of testing milk.

Seeing Smell Testing

2. CLOT ON BOILING TEST –  After testing checking is done between good and pour milk.

Formalin test Soda test Urea test Sugar test Caustic test These tests are based on c lot on boiling test

3. S.P.C. (Standard plate count) TEST –  In this type of testing not more than 25000 Bacteria’s should be present in one ml

of milk.

4. CLR (Correct Lacto Meter Reading) Test –  In this type of testing is done to find out quantity of water in milk.11%, 135%

should be is LATIC ACID in the milk.

5. M.B.R.T. (Methyl Blue Reduction Test) –  M.B.R.T. test is done for milk pasteurization. Heating temperature should be 72 –

80Degree centigrade. Chilled temperature should be 5 degree below

6. S.N.F. Test (Solid not fat) –  S.N.F. test is based on lactometer test.S.N.F.=CLR/R x .2 X fat %+.29 (this

formula is used for Big lactometer)S.N.F.=CLR/4 x .2 x 5%+.50 (this formula is used for small lactometer

CONCLUSION

Finally I have prepared a report on PRAKASAM DISTRICT MILK PRODUCTION COMPANY LTD at ONGOLE.

Here I spent my two days (Daily five hours) and had taken visit of wholeunit. I can conclude that the unit has all four departments and the superior-sub-ordinatesrelationship can be observed. In this organization the best thing co-ordination and co-operation among all departments which is very essential and makes the communicationeffective which I liked mostI think only these two secrets for the success of this organization. And Iam thinking that if these would remain as a same the day is not far away that this will become best dairy in Andhra Pradesh

I am very thankful to all officers, workers, and asst. manager who gaveme the information by spending their valuable time.