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Mother dairy final report

This report mainly focuses on the various factor regarding Indian dairy industry.It will actually take you to insight of Mother dairy.
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Mother dairy final report

  1. 1. A Project Report On Potential and Future of Dairy industry An Insight of Mother Dairy Submitted to:- INTERNATIONAL INSTITUTE OF BUSINESS STUDIES In partial fulfilment of the requirement of the award For the degree of MASTER OF BUSINESS ADMINISTRATION Under the guidance of Mrs Seema Mishra Mr Sachin Rohtagi Ast Dean Professor IIBS NOIDA IIBS NOIDA Submitted By:- Anand Kumar Tiwari BU-S 12 Second Semester 2013
  2. 2. CERTIFICATE I hereby certify that the work which is being presented in the MBA. Project Report entitled “An Insight of Mother Dairy”, in partial fulfilment of the requirements for the award of the Master of Business Administration and submitted to International Institute of Business Management, Noida is an authentic record of my own work carried out during Second Semester under the supervision of Prof Sachin Rohtagi, Finance Department. The matter presented in this Project Report has not been submitted by me for the award of any other degree elsewhere. Place: Date: Authorised Signature
  3. 3. TABLE OF CONTENT 1. Preface 2. Acknowledgment 3. Declaration 4. Executive Summary  About the industry  About the NDDB  About Operation flood  About the company  Process  About Functional Department Production Department Finance Department Marketing Department Human Resource Department Purchase and store Department Quality Assurance Department Dispatch And Logistics Department 5. Facts And Figures  Milk Production in India  Milk Production by Mother Dairy  Comparison Chart  Per Capita Consumption And Expenditure  Graphical Representation of NSS Data  Milk production across countries  India’s contribution to dairy Industry  Index no of Whole sale price. 6. Mother Dairy Export 7. De-Galleria 8. CSR Activity 9. SWOT 10.Recommendations 11.Annexure
  4. 4. PREFACE As MBA students our aim should not be only to learn theoretical concepts in the classroom, but it becomes more important as how we apply those concepts in practices. In present scenario the world is developing so fast, and thus the technological and application theory is changing at a greater phase. The study inculcates students to think out of the box, rather than emphasising within the box. We are coming across many modern theories and implementation of machineries, to start new business. We must have the knowledge of theories and practical, through it, the student can able know about how to apply their mind in the real business world. This program of industrial visit is to create awareness about the industrial environment amongst the students. Such Industrial visit also plays vital role in MBA programme. The importance of industrial visit and project preparation has been widely accepted in the education institutions. Thus knowing the importance of such practical visit, our college is providing with such a programme to enhance the overall development of the students. “MOTHER DAIRY” gave me the golden opportunity to carry out my visit in such a great organization. I have prepared the detail report regarding the “Potential and future of dairy Industry”. I have tried my best to collect all necessary information relating to the project work.
  5. 5. ACKNOWLEDGEMENT This project is done as a semester project, as a part of course titled “MOTHER DAIRY”. I’m really thankful to my instructor Mr. Sachin Rohtagi, Assistant Professor, for Financial Management, International Institute of Business studies, Noida, for his valuable guidance and assistance, without which the accomplishment of the task would have never been possible. I would also like to thank him for giving this opportunity to explore into the real world and realize the interrelation of Dairy Industry and Economics, without which a society can never progress. In my project I have chosen the topic- “Potential and Future of the dairy Industry” and as the study of the same, done for Delhi-NCR Region, one of the famous and most populous regions of India. This report contains an over view of Dairy industry of North West Region and the Various Development and planning by co-operative societies and national dairy development board, for a better understanding of the various steps implemented by the government to overcome the growing demand of the dairy requirements of the country. I’m also thankful to all those working for Mother Dairy for providing me with relevant information and necessary clarifications.
  6. 6. DECLARATION I, Anand Kumar, hereby declare that the report on “MOTHER DAIRY” entitled “Future and Potential of Mother Dairy” is a result of my own work and my indebtedness to other work publications. Correction if any will be duly acknowledged. Place: NOIDA Date: 17th June 2013 Anand Kumar Tiwari
  7. 7. EXECUTIVE SUMMARY The report consists of the details on Mother Dairy India Ltd. It is one of the most effluent company’s of India for processed milk and milk Products. The main aim of it is the welfare of the society by providing quality milk to its consumers at an affordable price. This report also contains the detailed information about the rise in population with respect to rise in dairy industry. The dairy industry has being studied in detail, so that that can be converted into information which can be used by mother dairy for strategising its marketing advertisement areas. It has various functional departments such as the Production, Human Resource, Finance, Marketing, Purchase and Stores, Quality Assurance, Dispatch and Logistics. This report is descriptive in nature but contain vital data of the capacity of Indian dairy industry and competitors to mother dairy. This report will help mother dairy to make strategies for their long term objective. This will enable the company to take appropriate decision as needed to increase as well as to retain its customers in the market. The data has been analyzed by presenting it in the form of graphs and tables and based on it; the interpretations have been made for the same. The results and findings have also been made for the organization to help management in their decisions. Lastly, the recommendations have also been made for the organization.
  8. 8. ABOUT DAIRY INDUSTRY Introduction: The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the country. During 1997-98, the States (Delhi-Haryana-Uttar Pradesh) had 17574 million tones production capacity, which rose to 29719 million tons by the year 2012. In addition to many processing plants, many government co- operative societies and chilling centers have being made. About the Indian dairy Industry In India, the dairy sector plays an important role in the country’s socio-economic development and constitutes an important segment of the rural economic. Dairy industry provides livelihood to millions of homes in village, assuring supply of quality of milk and milk products to both urban and rural areas. With view to keeping pace with the country’s increasing demand of milk and milk products, the industry has being growing rapidly. According to research report “Indian Dairy Industry Analysis” India is world’s largest milk producers accounting of around 17% of the global milk production. Besides, India is also one of largest consumers of milk and milk products. Due to rich nutritional qualities, the consumption of dairy product has being growing exponentially in the country, and considering such facts and figures, my study anticipates that the milk production in India will grow at a CAGR of around 4% during 2012 to 2015.
  9. 9. With rising use of dairy product, the secondary market of dairy product has been flourishing, my report observed. Covering the necessary aspects of the Indian dairy industry, the study facilitates knowledge about its current market scenario and future growth. Analyzing the past and current state of the industry, the report tries to find out how trends like the entry of international companies and packaging are attracting the consumers and heeding towards further growth in the market. This way, it present a clear picture of the direction, in which the industry is likely to proceed in the coming years. The government is taking several initiatives and running plans and programs like National Diary Plan and Intensive Dairy Development Program to meet the growing demand for milk in the country. Our report talks about such schemes, and government regulations to present an objective and balanced picture of the industry. The study also discusses the opportunities and strengths of the dairy market in a complete SWOT analysis, and provides an insight into the competitive landscape. We hope that our comprehensive research will help clients align their business strategies as per market dynamics, and make sound investment decisions.
  10. 10. ABOUT NDDB
  11. 11. ABOUT NDDB National Dairy Development Board (NDDB) was founded to replace...  Exploitation with empowerment.  Tradition with modernity.  Stagnation with growth. An instrument for the development of India’s rural transforming dairying into an instrument for the development of India’s rural people. Prior to NDDB, the milk market was vastly governed by local private dairy and these dairies were neither producing milk nor they were animal breeders and hence law of demand and supply was unheard by those whose intentions were purely to make more money from both the sides – that is from producers of milk (farmers) and consumers at large. Establishment of NDDB broke that spell and traders were side lined in due course. The National Dairy Development Board was created in promote, finance and support producer-owned and controlled organizations. NDDB’s efforts are co-operative principles and the Anand Pattern of Co-operation Philosophy of NDDB  Co-operation is the preferred form of enterprise, giving people control over the resources, through democratic self governance.  All beneficiaries, particularly women and under privileged, must be involved in co-operative management and decision making.  Technological and evolution search for better way to achieve the objective in the dynamic market. The NDDB was created in 1965, fulfilling the desire of the Prime Minister of India – the late Lal Bahadur Shatri – to extend the success of the Kaira Co-operative Milk Producers union (Amul) to other parts of India.
  12. 12. That success combined the wisdom and energy of farmers with professional management to successfully capture liquid milk and milk product markets while supporting farmer investment with inputs and services. NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of grassroots milk producers. The mission achieved thrust and direction with the launching of “Operation Flood”, a programme extending over 26 years and which used World Bank loan to finance India’s emergence as the world’s largest milk producing nation. Operation Flood’s third phase was completed in 1996 and has to its credit a number of significant achievements. As on March 2001, India’s 96,000 dairy co-operatives integrated through a three tier co-operative structure – “The Anand Pattern”, owned by more than ten million farmers, procure an average of 16.5 million litres of milk every day. The milk is processed and marketed by 170 milk producers’ co-operative unions which, in turn, own 15 state co-operative milk marketing federations. NDDB also promotes other commodity-based co-operatives, allied industries and veterinary biological on an intensive and nation-wide basis. Dr. (Ms) Amrita Patel serves as the Chairman of NDDB; Dr. Varghese Kurien was the founder Chairman.
  13. 13. ABOUT OPERATION FLOOD Introduction to Operation Flood Operation Flood has been one of the world’s largest rural development programmes. It was started by India’s National Dairy Development Board (NDDB) in 1970. One of the largest of its kind, the programme objective was to create a nationwide milk grid. Operation Flood strategy The bedrock of Operation Flood has been village milk producers’ cooperatives, which procure milk and provide inputs and services, making modern management and technology available to members. Operation Flood’s objectives included: Increase milk production (“a flood of milk”) Augment rural incomes Reasonable prices for consumers Programme Implementation Implementation of Operation Flood Operation Flood was implemented in three phases. Phase I Phase I (1970-1980) was financed by the sale of skimmed milk powder and butter oil gifted by the European Union then EEC through the World Food Programme. NDDB planned the programme and negotiated the details of EEC assistance. During its first phase, Operation Flood linked 18 of India’s premier milk sheds with consumers in India’s four major metropolitan cities: Delhi, Mumbai, Kolkata and Chennai. Phase II Operation Flood’s Phase II (1981-85) increased the milk sheds from 18 to 136; 290 urban markets expanded the outlets for milk. By the end of 1985, a self-sustaining system of 43,000 village cooperatives covering 4.25 million milk producers had become a reality. Domestic milk powder production increased from 22,000 tons in
  14. 14. the pre-project year to 140,000 tons by 1989, all of the increase coming from dairies set up under Operation Flood. In this way EEC gifts and World Bank loan helped to promote self-reliance. Direct marketing of milk by producers cooperatives increased by several million litres a day. Phase III Phase III (1985-1996) enabled dairy cooperatives to expand and strengthen the infrastructure required to procure and market increasing volumes of milk. Veterinary first-aid health care services, feed and artificial insemination services for cooperative members were extended, along with intensified member education. Operation Flood’s Phase III consolidated India’s dairy cooperative movement, adding 30,000 new dairy cooperatives to the 42,000 existing societies organised during Phase II. Milk sheds peaked to 173 in 1988-89 with the numbers of women members and Women’s Dairy Cooperative Societies increasing significantly. Phase III gave increased emphasis to research and development in animal health and animal nutrition. Innovations like vaccine for Theileriosis, bypass protein feed and urea-molasses mineral blocks, all contributed to the enhanced productivity of milch animals. From the outset, Operation Flood was conceived and implemented as much more than a dairy programme. Rather, dairying was seen as an instrument of development, generating employment and regular incomes for millions of rural people.
  15. 15. Achievements of Operation Flood “Operation Flood can be viewed as a twenty year experiment confirming the Rural Development Vision” (World Bank Report 1997c.) 1. It resulted in making India the largest producer of milk and milk products, and hence is also called the White Revolution of India. It also helped reduce malpractices by milk traders and merchants. 2. This revolution followed the Indian Green Revolution and helped in accelerating organic, decentralized development across the board, alleviating poverty by offering gainful employment, and also providing access to better nutrition. 3. Operation Flood has helped dairy farmers direct their own development, placing control of the resources they create in their own hands. 4. A National Milk Grid links milk producers throughout India with consumers in over 700 towns and cities, reducing seasonal and regional price variations while ensuring that the producer gets fair market prices in a transparent manner on a regular basis.
  17. 17. MOTHER DAIRY "Mother Dairy" is the single largest brand of milk in India as well as in Asia, marketing about 4.45 million litres of milk per day. Mother Dairy commands 62% market share in the organized sector in and around Delhi, primarily because of consistent quality and service – whatever be the crisis - floods, transport, strike, curfew etc. Mother Dairy, Patparganj, Delhi, is presently manufacturing & selling around 8.5 lakh litres of toned milk through bulk vending shops. Mother Dairy, Delhi is an IS/ISO - 9001:2000 and Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Environment Management System (EMS) Certified organisation. Mother Dairy was the first Dairy in the country to implement ISO-14031 (Environment Performance Evaluation) project. The company’s Quality Assurance Laboratory is ISO/IEC- 17025:1999 certified by NABL (National Accreditation Board for Testing and Calibration Laboratory), Department of Science & Technology, India. This provides assurance to consumer in respect of Quality and Safety of products manufactured and marketed by Mother Dairy. The National Dairy Development Board (NDDB) commissioned Mother Dairy in the first phase of Operation Flood in 1974. Considering the success of Dairy industry NDDB established Fruit & Vegetable Project in Delhi in 1988 with "SAFAL" as its umbrella brand. With a view to separating the commercial activities from developmental activities, the NDDB merged Mother Dairy and the Fruit & Vegetable project into a wholly owned company named Mother Dairy Fruit & Vegetable Ltd (MDFVL) in April 2000. This becomes the holding company of Mother Dairy India Ltd (MDIL) – a marketing company and Mother Dairy Foods Processing Ltd (MDFPL) – a processing company. MDFPL is a multi unit company, with units at various locations in India. Mother Dairy, Delhi is one of the units of MDFPL. The company is a highly trusted house hold name for its wide range of milk products like Milk, Flavoured Milk, Ice-Cream, Dahi, Lassi, Table Butter, Dairy Whitner, Ghee etc. The application for the award is being made for Mother Dairy, Delhi unit. Mother dairy has taken up the concept of Total Productive Maintenance (TPM) wholeheartedly.
  18. 18. The number of employees involved in KAIZENS and the no. of KAIZENS per employee are very encouraging. Mother Dairy is a member of CII-TPM Club and the KAIZENS done by Mother Dairy employees have been selected and presented in 2nd, 3rd, 4th and 5th National Kaizen Conferences held from time to time during the last three years. Our TPM efforts have resulted in increase in MTBF and decrease in MTTR, quality improvement, Cost reduction and reduction in accidents. Mother Dairy has received "Best Productivity Performance" award for three consecutive years starting from1987-88 to1989-90 and again from1995-96 to1997- 1998 from National productivity Council and a commendation Certificate for Rajiv Gandhi National Quality Award, National Energy Conservation Award - 2004, Oil and Gas Conservation Award - 2004, Indian Innovation Award - 2004 and Safety Initiative Award - 2005. Over the years, Mother Dairy has not only served the daily need of milk of the consumers of Delhi, it has also extended its milk to other States like Haryana, Uttar Pradesh, Maharashtra, Andhra Pradesh & Gujarat and is expanding its wings rapidly to serve the masses. Strategically located Mother Dairy booths across Delhi and NCR make it convenient for you to pick up your daily requirement of Milk, Flavoured milk, Butter, Dahi, Lassi, Cheese, Chaas….mouth watering Ice Creams. The focus is on key markets for each of the categories. In the curd category, they have been in Delhi for a while now and launched in Mumbai just three months back. They hold a 60 per cent market share in Delhi, but it is too soon to gauge where we stand in Mumbai. Objectives and Business Philosophy of Mother Dairy The main stakeholder of Mother Dairy was the farmer member for whose welfare it existed. Unlike other organizations, their objective is not to maximize the profit. They are more interested in giving the best price for the farmers for their milk than in making a large profit. Thus they look at the price given to their suppliers as not a cost but as an objective. Mother Dairy had, as its main objective, “carrying out activities for the economic development of agriculturists by efficiently organizing marketing of milk and dairy
  19. 19. produce, agricultural produce in raw and/or processed form and other allied produce”. This was to be done through: · Common branding · Centralized marketing · Centralized quality control · Centralized purchases and · Pooling of milk efficiently Mother Dairy had declared, as its business philosophy, the following: · ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices and; uphold institutional structures that empower milk producers and farmers through processes that are equitable. The biggest strength of Mother Dairy was the trust it had created in the minds of its consumers regarding the quality of its products. NDDB and its brand Mother Dairy stood for guaranteed purity of whatever products it had produced. Adulteration was simply not done in any of its products. In India, where such trust was hard to come by, this could provide a central anchor for Mother Dairy’s future business plans. For more than 40 years' Mother Dairy helping to create a national network has been adapted and extended to other commodities and areas. Their constant effort to learn and to enrich experience is central to their approach and capacities. In times to come, Mother Dairy shall strive to become a leading player in the food industry in India.
  20. 20. PROCESS The Process Flow of the Mother Dairy Raw . Raw Milk Reception: Raw milk received through insulated road/rail tankers at a very low temperature thus retaining the freshness of milk. The milk goes for more than 15 stringent quality tests before it is accepted for the processing of milk. Milk achieved from individual producers is checked for all basic quality parameters meeting the company specification and required norms at respective collection and chilling centres. Milk is then supplied to the dairy units through insulated milk tankers at <4 degree C. Processing of Milk: Processing of milk is done in basically 4 steps  Clarification  Standardization  Homogenization  Pasteurization Raw Milk Reception Clarification Standardization Processed Milk Pasteurization Homogenization Deep Chilling Dispatch
  21. 21. Clarification: The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier spins the milk at very high speed, removing all the dust particles that are invisible to naked eyes. Standardization: Milk from different breeds of cow and buffalo may vary in its composition. Hence, to make Milk uniform in composition, before supply to the market, it is standardized by raising or lowering its fat and SNF percentage present in the milk to a desired level, so as to deliver the milk to consumers as per prescribed norms of FSSAI. Homogenization: In this process, the milk is processed at very high pressure during which the large fat globules presently in milk are broken down into tiny droplets. The milk fat gets evenly distributed in the milk and milk become whiter and thicker. Milk is homogenized for consumers who do not like cream layer on top. Homogenization improves Palatability of milk and is easily digestible. Pasteurization: The milk is then pasteurized, named after Louis Pasteur, a French Scientist who invented the process to use in wine. Pasteurization was first applied by Dr. Soxhiet of Germany. This involves heating of milk to 72 degree Celsius for 15 second and then cooling it down to 4 degree Celsius. The process kills all pathogenic bacteria present in the milk making. It makes milk safe for consumption. Pasteurization, unlike boiling does not affect the nutritional value of the milk.
  23. 23. Production Department is most important part in any organization, firm, company or co-operative sectors. Production can be made for the middle users or for the end- users (direct consumers). Production do the main work of converting raw material into semi-finished or finished goods, it depends on what kind of production the organization is doing. In the context of Mother Dairy, people have endless demand for milk and milk products. MOTHER DAIRY undertakes the procurement of milk and its production likewise satisfying the needs and demand of people. It estimates the demand and accordingly production is done for which arrangement of Raw material, finance and provision for selling is made by MOTHER DAIRY. The Production Department is interrelated with the Personnel, Finance, and Marketing Department. On an average 30 million litres of milk is processed by Mother dairy. Major Products of Mother Dairy: Following are the some milk products that the Mother Dairy products and sale in different areas of Delhi-NCR. Flavoured milk pouch 33149 pouches per day Flavoured milk bottles 31114 bottles per day Goras chhas 14,39,04 pouch of 500ml per day Jira Chhas 14,16,552 pouch of 200ml per day Dahi 2,80,711 pouches of 200ml per day Cheese N/A Full Cream Milk 8 lakh litres per day Standardised Milk 10.75 lakh litres per day Toned Milk 4.36 lakh litres per day Double Toned Milk 2 lakh litres per day Skimmed Milk 4.89 lakh litres per day
  24. 24. Activities of Production Department:  There are mainly Eight (8) activities done by the Production Department. They are as follows: 1. Raw Material Receiving Dock 2. Clarification 3. Homogenization 4. Pasteurization 5. Chilling 6. Processed Milk 7. Deep Chilling 8. Dispatch In Insulated Tankers Mother Dairy has set up a modern plant for the production process. It has established its plant in a modern high tech style which functions nearly 80% automatically.
  25. 25. Finance Department
  26. 26. Finance Department Finance is the most crucial part in any organization. Finance is required in each & every stage of the business. Business is nothing but a process of making money through money. The finance department of a business takes responsibility for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers The primary purpose of the Finance Department is to monitor and report on the financial position of the Mother Dairy and to provide an excellent level of service to their public customers and customers in other City Departments. It can be acquired through various sources. After the acquisition of finance, the work of utilization of finance is to be decided. The finance department has to deal with not only the procurement of finance but also with the proper utilization of it. Finance is the basic requirement for purchase of assets, production of goods, marketing, selling, etc. The finance department takes the decision regarding financial matters. Thus, we can say that finance dept. is one of the most important dept. Source of Finance in Mother Dairy Mother 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 fulfilled either by issuing equity shares or by taking loan from “National Dairy Development Board”. The repayment of loan is done in equal instalments, the amount is pre-decided. Generally, 8% interest is charged on the amount of loan. The Main Areas Covered By Financial Department in Dairy Book keeping procedures. Creating a balance sheet & profit and loss account. Providing information to management. Management of wages & salary.
  27. 27. Raising Funds. Cost allocation. Capital Structure in Mother Dairy Capital structure of an organization refers to procurement of capital. Capital structure including all the financial. Thus capital structures of an organization show how or through which sources raised. Mother dairy is a co-operative society and its capital needs are fulfilled by NDDB. Mother Dairy Is A Co-Operative Organization. It Does Not Issue Right Or Any Other Public Issue. Therefore There Is No Question Of Any Bonus. “MOTHER DAIRY” does not have any other source of raising fund, for any undertaking it is financial by NDDB or self financing.
  29. 29. Marketing Department “It is clearly said that Marketing Department is the Front Face of any organization or firm”. This is said because marketing is the only means from where the consumers can know about the upcoming products of the firm or organization. This indirectly gives result in increased sales of products. Marketing - in other sense, means promoting the product publically and to bring revenue through sales. Marketing Department does the function of creating demand in people and generates sales from it, which completely depends on marketing department. Mother dairy is having a full-fledged marketing dept. where all the functions related to marketing are performed. As a part of marketing strategy Mother Dairy has increased its Morning milk centres. Also mother dairy have introduced various innovative distribution format such as  Milk Shops.  Franchise Shops.  Kiosks.  Insulated Containers.  Container on wheel. This distribution is itself so innovative that make mother dairy different than their competitors. Strategies Implemented 1. Focused Approach Mother Dairy wants to get into bigger markets and have bigger shares in those markets. The cooperative is also expanding its product portfolio further to match rival offerings – particularly those of Amul. For the first 22 years of its existence, liquid milk was the only dairy product that Mother Dairy offered. It was in 1996 that it came up with ice-creams. But the real spurt came about four years ago, when it introduced curd, flavoured milk, and Lassi and mishti Dahi. It introduced butter a year-and-a half ago; ghee and UTH milk a year ago; and cheese, about 10 months ago. And under its frozen foods and vegetables brand Safal,
  30. 30. besides the introduction of corn and mixed vegetables, it has plans to come out with frozen potato-based snacks in a few months. So while the product portfolio has been growing, Mother Dairy has plans for reach out to newer markets - but the strategy here is more product-specific. In liquid milk, it will initially concentrate only on four markets - Delhi, its home ground; the Junagarh region and Ahmadabad in Gujarat; Mumbai, which it entered a year ago; and Hyderabad, where it moved in a little more than a year ago. They have no plans to go everywhere with liquid milk. What's the need to get into those markets that already have strong co-operative brands? Their objective of getting into newer locations is not to make Mother Dairy larger, but to ensure that there is a large viable Distribution network and consumer brand to take care of surplus milk. In Mumbai, where the liquid milk market is close to 40 to 42 lakh (4 to 4.2 million) litres a day, only about 20-22 lakh (2-2.2 million) litres a day is in the organised market - and that too is highly fragmented with a number of smaller players with shares of about 10,000-20,000 litres a day. Mother Dairy claims a share of 170,000 litres a day, with the biggest player, Mahananda, selling about 800,000 litres a day and Aarey and Amul about 250,000-300,000 litres a day each. In Hyderabad, Mother Dairy claims it has a 15 per cent market share of the approximate 9-10 lakh (900,000 to 1 million) litres a day of the organised market. These are still early days in the two markets, but we are looking at 10-12 per cent growth in the overall fresh milk segment. 2. Wider Spread However, as far as other dairy products are concerned, Mother Dairy plans to expand across the board. Other than milk, for most state federations, dairy products are still a small part of their operations. So they are taking their products to regions across India, where they see enough market potential. In ice creams, it was only two years ago that Mother Dairy entered its first market outside Delhi - UP and Punjab. Today, it's extended its operation to Haryana, Jaipur, Mumbai and Kolkata as well. Next year, it plans to go south to Hyderabad and Bangalore. In the case of butter and cheese, it's present across north India, Mumbai and Kolkata, and has plans to enter Bangalore by year-end. In UTH milk, it has entered Mumbai and the milk-short areas of West Bengal and north-east. For ghee, although the current focus is the northern region, it has plans for a nationwide presence.
  31. 31. As far as Mother Dairy's non-dairy products are concerned, edible-oil brand Dhara has already has nationwide presence. 3. Product Differentiation While Mother Dairy still may not have a product portfolio as large as Amul, which is also expanding across the country in a big way and is a much bigger player, it's doing its bit. Mother Dairy says the idea is not just to enter new markets, but to do well in those markets - which mean bigger market shares in the different product categories in whichever market it is present. The drivers will be value created through quality of the offerings as well as innovations in products. This will, of course, be backed by relevant marketing and promotion campaigns. Mother Dairy are bringing in mass Indian flavours which are building up in terms of absolute percentage of contribution. Their attempt is to make the taste experience in ice creams as familiar as possible so as to increase consumption. Take the case of curd. It started off very slow but today, Mother Dairy claims it's growing at close to 60 per cent year-on-year in Delhi. Here again, the Indian flavour formula seems to have worked. While curd from an MNC player is probably based on international formulation, they formulated it to taste as close to home-made curd as possible. If the offering fits well with the Indian consumer, the resistance is lower and acceptance more. 4. Smart Marketing On the marketing front, Mother Dairy says it's trying to take its product campaigns and communications to a higher platform. For instance, in the case of milk, the campaigns do not talk about the obvious benefits - milk is good for health, it has calcium and so on - but rather it targets children and are created around ideas such as "The country needs you, grow faster". As far as products such as butter, cheese and ice creams go, the campaigns have been created around "taste". For butter again, the focus is on children. Here, Mother Dairy has dared to go different. Since 60 per cent butter is consumed by kids, the company wants them to sit up and take notice of its butter.
  32. 32. Makkhan Singh, a sturdy jovial cow (a cartoon character) has been made its brand ambassador. While Mother Dairy has been carrying out school programmes - games and activities – involving Makkhan Singh in Delhi, it has plans to take such activities to Mumbai and Kolkata as well. It also runs a gaming website on the character to attract children. It's cheese for children again. A couple of Year ago, Mother Dairy carried out a retail activity: "Cheese khao superhero ban jao", where kids buying cheese at a retail outlet were invited for a photo op - dressed as superheroes - through Polaroid cameras; and the framed photograph was presented to them. The activity was carried out in about 150 outlets in Delhi and Mumbai, with about 20,000-25,000 snaps being taken. Cheese was also something that helped the company bond better with its retailers. In November 2005, retailers in Delhi displayed banners proclaiming, "Cheese ke saath bees ke cheez," a proposal that said if a consumer buys Mother Dairy cheese, the retailer can offer him anything worth Rs 20 from the shop - which worked better than offering something free with the product, which the consumer didn't even needs. The exercise resulted in better ties with retailers. A positive response made Mother Dairy to repeat it in Kolkata as well. Clearly, Mother Dairy has aggressive plans. But, strong regional brands and other co-operatives will continue to give it tough competition.
  34. 34. Human Resource Department There is a well versed Quote saying that “Employees are the assets of any organization” Which depicts that they are most important tool of organization. Thus to maintain them for the organization, Personnel department (Human Resource Department) is kept for the well being of employees. The function of Human Resource Department can be seen in each and every department of any organization. Thus it can be easily said that “The Human Resource Department” is the heart of any organization. The function of Human Resource Management is to manage the people working in the organization. It mainly focused on the intrapersonal relationship and interpersonal relationship of employees. Human Resource Management in simple words means planning, organizing, directing and controlling of procurement, recruitment, selection, training and development, compensation, integration, maintenance, appraisal, allocation and separation of Human Resources Thus, Human Resource Management refers to set of programme, functions and activities designed and carried out in order to MAXIMIZE the employee’s as well as organizational efficiency and effectiveness.
  35. 35. Human Resource Management at Mother Dairy “Mother Dairy is one of the leading Dairy” It shares collaborative and friendly relationship with preferred partners, employees, consumers and other workers involved to it. It maintains a transparency in handling the above relations and stick to its standards. The HRM function or Personnel department function in Mother Dairy is indeed vast. All major activities since working of a worker – from the time of his/her selection in to an organization until he/she resigns or get retired or leave job for any reason – comes under the preview of HRM. The HR planning in Dairy is very smooth and transparent. It made Mother Dairy a HUGE BIG Family of approximately 3000 employees. In Mother Dairy major attention is given on the welfare and Safety of employees. Dairy also focuses on developing human value and potential through various bearing and development activities and provide favourable atmosphere. All these functions are performed by HR in Mother Dairy.
  36. 36. HIERARCHY OF PERSONNEL DEPARTMENT Human Resource Is Divided Into Different Parts The HR in Mother Dairy in mainly divided into four sections: Personnel Department  Recruitment, selection, training, industrial relations, negotiation with Union etc. Administration Department GENERAL MANAGER (P&A) MANAGER (PERSONNEL) MANAGER TIME KEEPING MANAGER (ADMIN) SUPERINTENDENT (TELEPHONE) OFFICER OFFICER SR. OFFICEROFFICER JR. OFFICER JR. OFFICER JR. OFFICER SR. EXECUTIVE SR. EXECUTIVESR.EXECUTIVE JR. ASSISTANT JR. ASSISTENT TIME KEEPER JR.ASSISTANT (ADMIN) MANAGING DIRECTOR
  37. 37.  Its handles canteen, security, welfare facilities, safety, Any theft or loss, Absenteeism , events, AGM meeting organizing, licensing work, hygiene of various dept, etc. Time Keeping Department  It handles salary & wages, records of employees, provides benefit of statutory, ESS, Form fill up, punching System, provident fund, ESI etc. Telephone Department & Computer Department  Maintains the connection of each department and provides facility of CUG to each employee to remain in contact while doing work. So that if any query or problem occur they can contact each other easily. Computer system handles the whole MIS in Mother Dairy. Trade Union in Dairy Trade unions are the voluntary collective group of employees or employers formed to promote and convey their interest through collective actions to the organization. At Mother dairy, there are unions. 1. Mother Dairy, Yelahanka, Bangalore.  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.
  38. 38. Recruitment Recruitment is a process of searching for prospective employees & stimulating them to apply for the job in the org. Recruitment of an employee is done on the bases of “Human Resource Planning” carried by Mother dairy Mgt. At Mother dairy recruitment is done through both sources i.e. internal as well as external sources. Internal Recruitment: Recruiting employees internally like promotion, transfers, etc. External Recruitment: Recruiting employees form job portals, employment exchange, campus interview, advertisements. Dairy uses External source of recruitment mostly. Selection Selection procedure includes the selecting Right candidate, at Right time, for right job. It is as follows:  Application form  Bio-data analysis  Short-listing.  Interviews  References/security screening  Ability tests  Aptitude, intelligence and personality  Work experience/short term contracts  Medical checkups.  Placement/Appointment.
  40. 40. Purchase and Store Department Inventory Management System In Mother dairy, the store department uses the FIFO method. I.e. First in First Out method of inventory management. Purchase Procedure Mother Dairy’s main raw material is milk. The purchase department has only to pick up just 10% of other raw material. The purchase procedure is as under: 1. First of all respective department heads find out their need and get it approve by the managing director. 2. Then they contact the stores department. 3. After this they send an indent to the purchase department. 4. The purchase department then asks for quotation from the suppliers. 5. After the quotations are received will then be selected. 6. The least cost giving suppler will then be selected. 7. Then take the approval and give the authority to the supplier who gets the quotation passed. 8. Then just let the finance department will make the payment the supplier after the delivery of goods. Types of Stores  Cold Stores The cold stores are use for storing milk, chhas, flavoured milk, Dahi etc. and many other products.  General Store 1 In this general store, the veterinary products, medicines, transportation instrument, buckets, flavours for milk and Ice-cream are stored here.  General Store 2 Here plastic of milk bags is store; tins of ghee, milk powder etc. is stored.
  43. 43. Activities Carried By People in Quality Control Lab  Superintendent The superintendent observes all the activities in the lab, packing and giving the guidance.  Junior Officer Here the officer looks after all Agmarks related to ghee and butter in the lab.  Senior Officer Here the senior chemist looks after IS/ISO 9062 IS 14001, HACCP, 2002 f 3A (food safety management system) and ISO 9000-2000 certificates.  Chemist The chemist looks after all the society milk, pasteurized milk and other milk products.  Sampler The sampler takes the samples from the milk received from different co- operative societies.  Micro Biologist (Milk Plant) The microbiologist cleans up all the tools and machines, which are used for milk, butter and buttermilk.
  45. 45. Dispatch and Logistics All activities carried out under the supervision and order General Manager of Marketing head i.e. order of milk and milk products are dispatched as per the order of customers and retailer and all records of dispatch are kept in dispatch register and computer. In dispatch department the work is divided in 3 shifts 1. Morning 2. Afternoon 3. Evening Sources of Mode of Transportation There are trucks, tempos, insulated vans, three wheeler tempos are used to deliver the milk and the milk products in all the three shifts.
  47. 47. Facts and Figures Milk production in India SOURCES: Department of Animal Husbandry, GoI Conclusion:  Rise In total production capacity- 5%  Rise in Consumption (gms/day)- 3.55% 0 50 100 150 200 250 300 350 Production (Million Tonnes) Per Capita Avaiblity (gms/day)
  48. 48. Production by Mother Dairy Sr No Operational States Quantity (Per Day)/(Million ltrs) 1 Delhi-NCR 30 2 Saurashtra 6.5 3 Mumbai 7.75 4 Hyderabad-Haryana-Uttar Pradesh 2.2 Total 46.45 Comparison Chart Total Contribution by Mother Dairy in India-2012 Conclusion: 68 % of the Indian market is dominated by unorganised players Mother dairy can use this as an opportunity, and plan strategies to capture the market. Million Liters Mother Dairy Amul
  49. 49. Per capita monthly Consumption & Expenditure in Milk & Milk Products N S S MILK & MILK PRODUCT ROUND 25th (1970-1971) Rural 3.03 Urban 5.01 ROUND 27th (1972-1973) Rural 3.22 Urban 5.91 ROUND 32nd (1977-1978) Rural 5.29 Urban 9.16 ROUND 38th (1982) Rural 8.45 Urban 15.15 ROUND 42nd (1986-1987) Rural 13.48 Urban 23.32 ROUND 43rd (1987-1988) Rural 13.63 Urban 23.83 ROUND 44th (1988-1989) Rural 15.65 Urban 26.74 ROUND 45th (1989-1990) Rural 18.35 Urban 29.53 ROUND 46th (1990-1991) Rural 19.04 Urban 32.37 ROUND 47th (July-Dec 1991) Rural 21.90 Urban 37.21 ROUND 48th (Jan- Dec 1992) Rural 23.00 Urban 42.00 ROUND 49th (Jan-June 1993) Rural 23.00 Urban 41.00 ROUND 50th (July 1993-June 1994) Rural 27.00 Urban 45.00 ROUND 51st (July 1994-July 1995) Rural 27.00 Urban 49.00 ROUND 52nd (July 1995-June 1996) Rural 32.38 Urban 56.45
  50. 50. ROUND 53rd (Jan-Dec 1997) Rural 39.31 Urban 62.75 ROUND 54th (Jan- June 1998) Rural 36.54 Urban 64.63 ROUND 56th (July 2000- June 2001) Rural 42.97 Urban 75.90 ROUND 57th (July 2001-June 2002) Rural 41.91 Urban 75.82 ROUND 58th (July 2002- Dec 2002) Rural 45.34 Urban 78.19 ROUND 59th (Jan 2003- Dec 2003) Rural 44.69 Urban 80.03 ROUND 60th (Jan 2004-June 2004) Rural 47.60 Urban 82.98 ROUND 61st (July 2004-June 2005) Rural 47.31 Urban 83.30 ROUND 66th (July 2009-June 2010) Rural 80.55 Urban 137.01 Sources: Levels And Pattern of consumer expenditure, various issues, National Sample Survey Organisation, Ministry of Statistics & Program implementation, GOI. Thus the above table shows the increase in consumption of milk and milk Products, in Rural and Urban India both. Per capita monthly consumption and expenditure in milk and milk products have risen since 1970 to till date, thus a major opportunity for milk industry as well as Mother Dairy.
  51. 51. Graphical representation from 60th National sampling survey to 66th Nationals sampling survey to give clear cut idea of the increase in consumption and spending in rural and urban India. Conclusion: Rural increases from 60th to 66th round is by 69.22% Urban increase from 60th to 66th round is by 65.11% 0 20 40 60 80 100 120 140 160 Round 60th Round 61st Round 66th Rural Rs Urban Rs
  52. 52. Milk Production across countries (Million tonnes) Year Country 1970s 1980s 1990s 1996 1997 2000 2005 2010 INDIA 20.80 31.56 53.68 68.36 70.88 79.66 95.62 117.00 CHINA 1.96 2.93 7.04 10.19 10.09 12.37 32.02 41.14 RUSSIA 0.00 0.00 0.00 35.82 34.13 32.28 31.15 32.14 BRAZIL 7.24 12.06 15.08 19.20 19.36 20.53 25.53 31.82 USA 53.07 58.24 67.01 69.86 70.80 76.02 80.25 87.46 PAKISTAN 7.45 9.01 14.72 22.97 23.58 25.57 29.44 35.49 WORLD 391.82 465.66 542.47 547.02 550.77 578.88 668.00 720.98 India’s contribution to world in Dairy Industry 0 100 200 300 400 500 600 700 800 1970 1980 1990 1996 1997 2000 2005 2010 World (Million Ltrs) India (Million Ltrs)
  53. 53. Finding: Rise in production from 2005 to 2010 by 22.12% Contribution to world dairy industry 16.22% Index Number of Wholesale Price: Year Commodity 2004 - 2005 2005 - 2006 2006 - 2007 2007 - 2008 2008 - 2009 2009 - 2010 2010 - 2011 2011 - 2012 Milk 100 101.01 108.98 114.58 123.24 146.41 175 194 Dairy Product 100 99.47 105.41 116.37 122.94 138.79 152.07 171.51 Finding:  Rise in Index no of wholesale Price of Milk from year 2010 to 2011 by 10.85%.  Rise in Index no of Wholesale Price of Dairy Product from year 2010 to 2011 by 12.78% Conclusion:  There is vast Scope in Milk industry as there is rise of 10.85% in index no of whole sale price of milk.
  55. 55. Mother Dairy Export Mother Dairy Fruit & Vegetable Pvt. Ltd, a USD 1 billion (1000 million) company and a leading manufacturer of dairy products and processed foods with well established brands such as Mother Dairy (packaged milk, ice-cream, butter etc.), Safal (fresh fruits & vegetables, purees, pulp, concentrate, blend, frozen vegetable, Preserved Gherkins & fresh fruits & vegetables etc) and Dhara (packaged edible oil). Mother Dairy manufacture tropical fruits pulps & concentrates of the highest quality in India and export fruits pulps & concentrates and fresh / frozen vegetables / fruits to over 40countries worldwide including USA, Europe, Middle East, Russia and Far East Asia. Mother Dairy has some of the reputed multinationals clientele like Coke, Pepsi, and Unilever etc in their basket. Mother Dairy’s International Marketing operations are managed by a dedicated export division that manages a network of international distributors & OEM customers - supported by its state of art manufacturing plants and Innovation centre in India. Mother Dairy / SAFAL maintains Superior quality through processing at ISO 9002, ISO 22000, FDA, FPO, Kosher, Halal, Global GAP, Ecocert, SGF and HACCP certified plants and GMP procedures are followed at all stage of processing. No wonder that Mother dairy / SAFAL is the preferred choice for dairy products, confectionary products and fruit juice producers, MNCs and traders across the globe.
  56. 56. De- GALLERIA
  57. 57. Product Gallery
  58. 58. Product Gallery
  59. 59. Milk Variants with Nutritional value Double Toned: Fat-1.5% SNF-9.0% Toned Milk: Fat-3.0% SNF-8.5% Full Cream: Fat-6.0% SNF-9.0% Skimmed Milk: Fat-<0.5% SNF-8.7% Standardised Milk: Fat-4.5% SNF-8.5% Full Cream Premium: Fat-7% SNF-9.0%
  60. 60. Cow Milk: Fat-3.5% SNF-8.5% UTH Toned Milk: Fat-3% SNF 8.5%
  61. 61. CSR ACTIVITY
  62. 62. CSR ACTIVITY BY MOTHER DAIRY Mother Dairy no doubly provided value to farmers and safe milk to consumers. Corporate Social Responsibility (CSR) is thus an integral part of the business model on which Mother Dairy operates. Multitude of social development and other initiatives have been nurtured by Mother Dairy from its earliest days. At Mother Dairy, their commitment to ethical conduct and social responsibility is core value of doing business, and is strongly aligned with their vision to create and increase value for farmers and to provide affordable, safe, healthy and tasty products to consumers. Community Mother Dairy’s prime commitment is to serve farmers Mother Dairy sources significant part of its requirement of Liquid Milk from Dairy Cooperatives. Similarly Safal sources its requirement of Fruits and Vegetables from farmers/growers association and Dhara helps the Oilseeds Grower Cooperatives by sourcing the production of the wide range of Dhara edible oils from them. This ensures that the farmers get the appropriate prices for their yield and quality. Mother Dairy also works towards improving the standards of the farmers by educating them about better farming techniques, hygienic practices and modern methods of dairy farming. This initiative by Mother Dairy is directed towards making the farmers independent and financially self sufficient.
  63. 63. Environment Mother Dairy commitment towards environment Mother Dairy promotes the Bulk Vended Milk, better known as 'Token' milk. Mother Dairy pioneered the concept of hygienically processed milk that is retained hygienic to the consumer in an unpacked condition. Mother Dairy sells approximately 10.5 lakh litres of token milk in Delhi alone and thus ensures more than 5 tonnes less consumption of plastic in Delhi every day.
  64. 64. SWOT Strength:  Different Variety of Milk.  Recognized brand name.  66% of Delhi-NCR market share  Trust of customer Weakness:  No Of Outlets are less.  Pays less to Farmers as compared to Amul.  This in return causes difficulties in engaging farmers. Opportunity  As the dairy industry is rising with rate of 5%, whereas population is rising by 17% making vast scope for expansion.  As the rise in Index of Wholesale price of Milk roused by 10.85%, thus there is huge potential in Milk industry.  Rise in Index no of Wholesale Price of Dairy Product from year 2010 to 2011 by 12.78%, thus making it profitable for Dairy Industry. Threats  Facing tough competition from competitors like AMUL.  Pricing policy for procuring milk is far less than its competitors, causing loss in faith of farmers  Supply chain management of competitors are much better.
  65. 65. Recommendations  Must focus on growing market opportunity.  Must revise its strategy of procurement of milk from farmers in regards to payment of price/litres.  Overseas market have huge capacity, must work aggressively on global expansion  Mother dairy facing challenges in Saurashtra region, due to AMUL which has market value of 10000 Cr.  Mother dairy loosing competition to Amul, due to weak supply chain management of Mother dairy.  Thus Mother dairy must focuses on its supply chain management.  There is huge gap in rise in population and rise in milk industry, thus the population is rising by 17% and rise in dairy Industry is 4%.  Mother dairy can utilized this in positive way to diversify itself in regard to expansion as well as product differentiation.
  66. 66. Annexure