SUMUL DAIRY

INTRODUCTION OF THE INDUSTRY

CHAPTER CONTENT:-

1.1 HISTORY
1.2 INDUSTRY DETAIL
1.3 MARKET SHARE, LEADERS AND PLAYERS

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 SUMUL DAIRY

1.1 HISTORY

 Beginning in organized milk handling was made in India with

the establishment of Military Dairy Farms.
 Handling of milk in Co-operative Milk Unions established all
over the country on a small scale in the early stages.
 Long distance refrigerated rail-transport of milk from Anand
to Bombay since 1945.
 Pasteurization and bottling of milk on a large scale for
organized distribution was started at Aarey (1950), Calcutta
(Haringhata, 1959), Delhi (1959), Worli (1961), Madras (1963) etc.
 Establishment of Milk Plants under the Five-Year Plans for
Dairy Development all over India. These were taken up with the
dual object of increasing the national level of milk consumption and
ensuing better returns to the primary milk producer. Their main aim
was to produce more, better and cheaper milk.

1.2 INDUSTRY DETAIL:

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 SUMUL DAIRY

Dairy is a place where handling of milk and milk products is done

and technology refers to the application of scientific knowledge for
practical purposes. Dairy technology has been defined as that
branch of dairy science, which deals with the processing of milk and
the manufacture of milk products on an industrial scale.

Dairy industry is one of the industries, which plays a dynamic role in

India's agro-based economy. Dairy farming includes breeding and
care of milk yielding cattle, procuring milk and processing of milk
into a variety of dairy products. A dairy product is a major exporting
industry and earns considerable foreign exchange for the country.
In 1946, the foundation of Anand Milk Union Ltd (AMUL), led to the
development of a better organized dairy industry and gave
momentum to education in dairying in India.

During the earlier years, each household in those countries

maintained its ‘family cow’ or secured milk from its neighbour who
supplied those living close by. As the urban population increased,
fewer households could keep a cow for private use. The high cost
of milk production, problems of sanitation etc., restricted the
practice; and gradually the family cow in the city was eliminated and
city cattle were all sent back to the rural areas.

Gradually farmers within easy driving distance began delivering milk

over regular routes in the cities. This was the beginning of the fluid
milk-sheds that surround the large cities of today. Prior to the 1850s
most milk was necessarily produced within a short distance of the
place of consumption because of lack of suitable means of
transportation and refrigeration.

In developed dairying countries such as the U.S.A., the year 1850 is

seen as the dividing line between farm and factory-scale
production. Various factors contributed to this change in these

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 SUMUL DAIRY

countries, viz. concentration of population in cities where jobs were

plentiful, rapid industrialization, improvement of transportation
facilities, development of machines, etc. whereas the rural areas
were identified for milk production, the urban centres were selected
for the location of milk processing plants and product manufacturing
factories. These plants and factories were rapidly expanded and
modernized with improved machinery and equipment to secure the
various advantages of large-scale production. Nearly all the milk in
the U.S.A. before 1900 was delivered as raw (natural) milk. Once
pasteurization was introduced, it developed rapidly. Mechanical
refrigeration helped in the rapid development of the factory system
of market milk distribution.

Dairy industry, now a highly specialized field today involves

production, procurement, storage, processing and distribution of
dairy products. The main jobs are in production and
processing. Production process includes the collection of
milk, breeding of high yielding cattle and taking care of the animals.
Dairy Scientists are employed to cover the production aspect of the
industry. They conduct experiments to determine the effects of
different kinds of feeds and environmental conditions on the
quantity, quality and nutritive value of milk produced. They also
research breeding to improve dairy breeds, feeding and
management of dairy cattle.

In India, dairying has been practised as a rural cottage industry

since the remote past. Semi-commercial dairying started with the
establishment of military dairy farms and co-operative milk unions
throughout the country towards the end of the nineteenth century.

The Indian Dairy Industry has made rapid progress since

Independence. A large number of modern milk plants and product
factories have since been established. These organized dairies

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 SUMUL DAIRY

have been successfully engaged in the routine commercial

production of pasteurized bottled milk and various Western and
Indian dairy products. With modern knowledge of the protection of
milk during transportation, it became possible to locate dairies
where land was less expensive and crops could be grown more
economically.

In the year 1939 Sardar Vallabhbhai Patel went and meet the
farmers of Anand and told them that for the trade of milk the dairy
was necessary. At that time a person named Tribhuvandas Patel
came forward to take the leadership. During that time there was
only one dairy “POLSUN DAIRY” which belongs to British’s and
they use to give very less price for milk to the India Milkmen. In
order to support the Indian farmers “AMUL DAIRY” was established
in the year 1946 DDR. Kurien was appointed at this dairy. Dr.
Kurien along with Tribhuvandas Patel took the leadership. Indian
becomes independent in the year 1947. in the meantime AMUL
Dairy got order from the WHO to produce milk Powder from buffalo
milk. Dr. Kurien & Mr. Dalaya found the technique of producing milk
from buffalo milk. After booking at this Lal Bahadur Shatri took the
visit of Ajampur village and promised them to provide with more
money fro the systematic development of the dairy industry. For the
proper development of the dairy industry NDDB was established at
Anand. NDDB started operation – 1 programmer for all dairies in
1971-72 in the year 1977 operation Flood-2 started. Transportation
machinery & pressmen of milk at low cost and give importance. In
the year 1990-operation flood-3 started. Here the farmers were,
made aware about their right & responsibilities high productivity of
milk at low cost & so the co-operatic of development programs
started.

1.3 MARKET SHARE, LEADER AND PLAYERS:

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 SUMUL DAIRY

There has one dairy co-operative society exist in every district of

India and it may not be more than one in one district as per
government regulations. But in Surat district there are two dairy co-
operative societies 1) Sumul & 2) Chauryasi.

In Surat district Sumul dairy is market leader in sells of milk. It offers

many types of milk. It sells milks in the brand name of AMUL. And
Amul dairy is India’s largest dairy industry and market leader of milk
and milk products. Amul dairy also exports many products to
abroad.

In Surat district more than 35% of total populations use sumul

brand milk.

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 SUMUL DAIRY

INTRODUCTION OF THE COMPANY

CHAPTER CONTENT:

2.1 COMPANY DETAILS

2.2 MISSION AND VISION STATEMENT OF SUMUL

2.3 ACHIEVEMENT OF SUMUL

2.4 LICENSES FOLLOWED BY SUMUL

2.5 OBJECTIVES OF SUMUL

2.6 SUMUL AT A GALANCE

2.7 MILESTORE OF SUMUL

2.8 GROWTH PLAN OF SUMUL

2.9 DETAILS OF PROMOTERS AND OWNERS

2.10 ORGANISATION STRUCTURE

2.11 DETAIL OF COMPETITORS IN MILK PRODUCTS

2.1 Company Details:-

In the initial stage of 20th Century, Private Milk Traders were

monopolizing the Milk market and use both the Milk Producers and

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 SUMUL DAIRY

Consumers alike for their own profit. Procurement price of milk was
very low and used to be fixed by such traders called “Traditional
Bhatia’s”. In addition to this, the price was fluctuating from time to
time at their sole discretion. The income of the producers from milk
was very low and they had no incentive for modern dairy farming.
The farmers felt indignant (resented) the system, but they were
helpless in the face of this traditional constraint and their own lack
of resource less ness. Hygiene and pure milk was almost unknown
in the market. As a result, better quality of milk was practiced by the
traders to meet the growing demand of milk in the city.

During the year 1948, Late Shri Jagjivande R. Patel, popularly

known as “DASKAKA”, brought framers of Olpad Taluka under the
ambit of a Co-operative Society, which was registered on 01-04-
1949 as Takarma Group Co-operative Milk & Vegetable Marketing
Society Ltd. This was established in order to face challenge of
fanne, which was the base of the solid foundation of Surat District
Co-operative Milk Producers’ Union Ltd., popularly known as
“SUMUL”.

Surat District has been a Pioneer in India in challenging trade in

Cotton and Milk, through co-operatives. The Surat District Co-
operative Milk Producers’ Union Limited, popularly known as
“SUMUL” came into existence on 22nd August, 1951. SUMUL is
trade name literally meaning ‘Sound Price’. Sumul was established
in order to salvage the poor producers from the clutches of private
traders. Organisation and integration of procurement, processing
and marketing of milk and milk products by the producers
themselves on a sound co-operative line. This also ensured
elimination of middleman equitable distribution of benefits to Rural
Milk Producers and indirectly to urban milk consumers as well. It
also discharged its most important obligation to help the producers,
increase milk production by providing them all essential inputs and
extension services at their door-step at most economic rates.

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A real break – through for synthesis and crystallization of SUMUL

came in 1966, with the approval of its Dairy Project at cost of Rs.
77.47 lacs under the Swedish Aid Programme. The State
Government also generously provided Rs. 74.28 lacs in the form of
subsidy, loan and share capital. The National Dairy Development
Board, under the stewardship of Dr. V. Kurien, designed and
erected the new Dairy Plant to cope – up with the targeted
increases in milk procurement in the succeeding years. The keen
interest and sold support of Dr. V. Kurien, right from 1951 till date
played an important role in bringing SUMUL to its current status.
The formal commissioning of the Pasteurization Plant on March
17,1968 was a turning point for SUMUL.

The BOARD OF DIRECTORS is 13 elected members from the 13

talukas of SURAT district and they from among themselves elect
the CHAIRMAN. Presently Shri MANUBHAI A. PATEL, the
CHAIRMAN and Shri P.R. PATEL are the MANAGING DIRECTOR
of SUMUL DAIRY.

The total numbers of SUMUL employees are 1117 besides the

contract workers. Currently the co-operative is on to TOTAL
QUALITY MANAGEMENT drives to improve the overall productivity
of the co-operative.

SUMUL has three chilling centers at BAJIPURA, NAVIPARDI and

UCHHAL for ensuring safe delivery of raw milk to SUMUL where
the milk is processed and packed in to various types liquid and by
products. To improve the nutritional feed given to the cattle at the
village level, the co-operative has established a cattle-feed factory
at CHALTHAN. SUMUL has also an oil packing station at
CHALTHAN (job work for GCMMF) where it packs double refined
filtered oil (repressed and mustard oil) in semi-packs to be sold in
various parts of the nation. The dairy also has CO-OPERATIVE

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 SUMUL DAIRY

DEVELOPMENT CELL as VERTINARY CELL to provide

educational and technical medical support for better animal
productivity at the village or DCS level.

The area of operation of SUMUL is the entire district of SURAT.

The present milk procurement of 160,929,736 liters of milk annually
makes it the third largest UNION in the STATE after the KAIRA
DAIRY (AMUL DAIRY) and MEHSANA DAIRY. It has the record of
paying the highest milk procurement price in INDIA to its producers.

SUMUL is the UNION and its surplus milk marketing in the state
and outside is handeled by the GCMMF (GUJARAT MILK
MARKETING FEDRATION ANAND) under the ANAND PATTERN,
as envisioned by the illustrious Dr. KURIEN. THE NATIONAL
DAIRY DEVELOPMENT BOARD (NDDB) is a NATIONAL LEVEL
ORGANIZATION helping the co-operatives movement development
in terms of resources (financial, technical and otherwise).

SUMUL is holding a strong BRAND EQUITY in SURAT DISTRICT

and commands more than 70 percent of the liquid milk in SURAT
CITY. To make the distribution system fast and to deliver milk in
time, they have as many as 61 milk transportation routes and 1531
agents (1386 regular and 145 full time).

The present market of SURAT for liquid milk is saturated to around

3.8 lacks litters per day. On the other hand milk procurement is
presently around 4.5 lacks litters. The supply-demand gape
between raw milk and liquid milk sales has increased to a level
where the daily milk surplus exceeds 1 lack litters. This has
necessitated the active development of the “BY-PRODUCT”
market. Products thereby introduced namely “PANEER”, “GHEE”,
“FLAVOURED MILK (JOME)”, “SWEETS”, “SHRIKHAND”, “LASSI”,
“BUTTER”, etc.

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SWEETS are profitable by-product the market scope of which is

reasonably good. The present sales volumes of sweets are
because of its taste, quality and freshness.

Surat Milk Union Limited or SUMUL, which is now renamed as The

Surat District Co-operative Milk Union Ltd, is one among the 12
district unions which acts as manufacturing units of dairy products
for Gujarat Co-operative Milk Marketing Federation Limited, the
marketers of AMUL and DHARA brand of products.

Surat District has been a Pioneer in India in channeling trade in

Cotton and Milk through co-operatives. Before SUMUL stepped in,
traditional Private Milk Traders were having complete control and
authority (dominant) over the area.

On the other hand, Dairying was not very much popular with tribals
(a major rural population in the District). There was no infrastructure
existed for milk marketing in their talukas, inaccessibility to their
villages as well as taboos regarding keeping of buffaloes prevented
the entire population of tribals from considering dairying as a source
of income. The tribals kept their cows to produce bullocks rather
than milk, which was insufficient even to nurse the calves. Most of
the tribals were unaware of the usual milch breeds.

Hygienic and pure milk was almost unknown in the market. To meet
the growing demand of milk in the city, these traders were adding
some other things to make inferior or lesser quality of milk. To
salvage the poor producers from the clutches of these Private
Traders, Organisation and integration of procurement, processing
and marketing of milk and milk products by the producers
themselves on a sound co-operative line was essential; this would
also ensure elimination of middlemen, equitable distribution of
benefits to Rural Milk Producers and indirectly to urban milk
consumers as well.

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2.2 Sumul’s Mission & Vision Statement:-

“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH

COMMITMENT TO CONSUMER DELIGHT AND RESPECT FRO
ALL. WE BELIEVE IN GROWTH AND CONTINUOUS
IMPROVEMENT THROUGH TEAMWORK, TRUST &
EXCELLENCE WITHOUT COMPROMISING OUR HONESTY AND
INTEGRITY”

It is quite obvious from the mission statement of the Sumul; the

organization is committed to customer satisfaction and believes in
providing the highest quality of product to them. Infect, for ensuring
highest quality product, it has already put into practice TPM and
TQM tools in the organization besides many Quality Circle (QC)
and Small Group Activity (SGA) operating in the organization to
achieve the vision and mission.

2.3 ACHIVEMENTS OF SUMUL:-

SUMUL is working for 54 years in Surat city. SUMUL sells milk and
milk products. In this 54 years time organisation has won many
awards and prizes which are mentioned in the following table
yearwise:

 AWARDS RECEIVED BY SUMUL:

Year Award Title Awarded by

1988-89 National Productivity Award National Productivity

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Council, New Delhi

South Gujarat
1989-90 Sardar Patel Saksharta Award
University, Surat
National Productivity
1990-91 National Productivity Award
Council, New Delhi
Council for Fair
1992-93 Jamnalal Bajaj fair Practice Award Business Practice,
Mumbai
Certificate of merit from National National Productivity
1998-99.
Productivity Council Council, New Delhi
Appreciation Award for Total
Quality Circle Forum
1999-00. Productivity maintenance
of India, Vadodara

Ahmedabad
Total Productivity maintenance
Management
1999-00. Award
Association,
Ahmedabad
Quality Excellence Award Surat Management
2000-01
Association, Surat
National Productivity Award (Dairy
National Productivity
2000-01 Development & Production
Council, New Delhi
Sector) - 2nd
Council for Fair
Jamnalal Bajaj Fair Business
2000-01 Business Practice,
Practice Merit certificate
Mumbai
Surat Management
2001-02 Manager of the year 2001
Association, Surat
Birla Cellulosic Award for Small Birla Cellulose,
2001-02
Group Activity Kharach
National Productivity Award (Dairy National Productivity
2001-02 Development & Production Council, New Delhi
Sector) - 2nd
Management Excellence Award - Surat Management
2002-03
2002 Association, Surat
IMC Ramkrishna Bajaj Award Indian Merchant
2002-03
Merit Certificate 2002 Chamber, Mumbai

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Energy & Fuel Users

Enfuse National Award For
2003-04. Association of India,
Energy Efficiency Excellence
Chennai
Surat Jilla Sahakari
2003-04 Best Organisation of the District
Sangh, Surat
Best Garden of the Company of Surat Municipal
2003-04
Surat City Corporation, Surat
Federation of Gujarat
2004-05 Award of Excellence
Industires

Scholar, President of
Science Technology
2004-05 Information Technology Award and Member of State
Govt. Pro. Dr. M. G.
K. Menon, at Delhi

Infra Structure –
Intelligent Enterprise Award – Retail and
2004-05
2004 Consumers Products,
at Sri Lanka

C Subramaniyam International United Nations of

2004-05
Award Organisation (UNO)

Best of Best Winner Team Award

2004-05 For ETP Less Load on Intel Sadar Presetation
Presentation
Shield For The Presentation of
Use Max. Space in Main Stores
2004-05 -----
By Reducing Storage Space (won
at 2nd rank)

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(Awardes taken from President and Prime minister of India at Delhi.)

2.4 LICENSES FOLLOWED BY SUMUL:-

The organisation follows different licenses which are as follows:

 ISO 9K2K
 HACCP
 MMPO
 ISI
 AGMARK
 PFA (Prevention of Food regulation Act)
 ISO14000
 ISO 4000

2.5 OBJECTIVES OF SUMUL:-

The SUMUL Dairy was established with the following objectives:

 To provide guaranteed remunerative milk market round the

year for surplus milk.
 To provide maximum return to producers.
 To provide good quality Milk and Milk Product to consumers.
 To increase milk productivity at most economic rate by
providing technical input services to the producers.

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2.6 SUMUL DAIRY AT A GLANCE:-

1 REGISTRATION NO. P.D:688

2 DATE OF REGISTERATION 22nd August, 1951
Date of commissioning of
3 March, 1968
Pasteurization Dairy Plant
Dairy Plant capacity at the time of 50,000 liters. per
4
commissioning day
6,00,000 liters. per
5 Present capacity of Dairy Plant
day
6 Milk Powder Drying capacity 12.5 MTs. per day
Milk Chilling Plants along with 3,00,000
7 Bajipura
capacity of Milk Chilling liters. per day
1,00,000
Uchchhal
liters. per day
2,00,000
Navi Pardi
liters. per day
30,000 liters.
Chasvad
per day
30,000 liters.
Dediapada
per day
8 No. of Milk Producers Co-op. 956
Total membership and Nos. of
9
Primary Milk Producers'
Co - operatives: Society Membership
Tribals & Non-Tribals 1,041 2,18,975
Milk Co – operatives Managed by
10 81
women
11 No. of Mobile Veterinary Clinics 22
12 No. of Veterinarians 40
No. of A.I. (Artificial Insemination)
13 140
Centres
14 Cattle feed Mixing Plant capacity 300 Mts. per day
Mineral Mixture Plant: Production 45000 packets for
15
and sale: Milk Producers

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2.7 Milestone of Sumul Dairy:

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2.8 Growth Path of Sumul Products:

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Products Year
Milk distribution in bottle 3-5-1968
Establishing member of GCMMF 9-7-1973
Milk distribution in polybag 7-12-1978
Butter milk distribution in polybag 1-6-1987
Whole milk (SUMUL YA) in bulk 1987-88
Whole milk (SUMUL YA) in 500 ml 1991
Homogenized toned milk in 500 ml 1994
Homogenized toned milk in 200 ml 1995
Flavor milk 1993
Paneer 1994
Sweets 1994
Shrikhand 1995
Masala Chaas 15-8-99
Flavored milk in 200 ml pouch 15-8-99
Pasteurized milk in 5 liter pack 1998
Masala chass, methi chass 2000
Pizza & Ice-cream 2001
Rasgulla, Gulab Jamun,Sugar & Cow milk 2002

Tea 2003
Glabletop Packing for Milk (Plane & 2004
Flavoured)
Buttermilk in ESL Packing 2005
Cold Coco 2005

2.9 DETAILS OF PROMOTERS AND OWNERS:-

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NO. NAME ADDRESS AND PHONE NO.

1 Shri Manubhai Amthabhai Patel Representative, Nihali Dudh Utpadak
(Chairman) S.M. Ltd, At: Nihali, Po:Dholikui,
Tal: Mahuva - 394250.
Res: (02625-258158)
MO.98241-10316
2 Shri Sudambhai Raghunathbhai Patel Representative, Velda Vibhag Dudh
(Vice Chairman) Utpadak S.M. Ltd., At: Velda,
Tal: Nizar 394370.
Res: ( 02628 ) - 244238 / 244228
3 Shri Chunilal Durlabhbhai Patel Representative, Lotarwa DudhUtpadak
S. M. JIN Ltd,
At & Po.: Lotarwa,
Tal: Vyara - 394 650.
Res: (02626) - 222446 / 220017
4 Shri Arvindbhai Singabhai Gamit Representative, Pipalkuwa Dudh
Utpadak S.M.Ltd, Pipalkuwa,Po:
Pipalkuwa,
Tal: Songadh – 394660.
Res: 02624 – 251088
5 Shri Jayeshbhai Natvarbhai Patel Representative, Delad Dudh Utpadak
S.M. Ltd, At: Delad Po.: Sayan,
Tal: Olpad – 394540.
Res: 02621 – 242362
6 Shri Jitendra Dhirajlal Desai Representative, Uchchal Dudh
Utpadak S.M. Ltd, At & Po.: Uchchal,
Tal: Uchchhal – 394375.
Res: 02628 - 231106/231123
7 Shri Ratilal Somabhai Master Representative, Surat Dudh Utpadak
M. Ltd, 40-A, Patelnagar, A.K. Rd,
Surat,
Tal: Choryasi - 395008.
Res: 0261 – 2543404
8 Shri Manojbhai Naranbhai Patel Representative, Shekhpur Dudh
Utpadak S.M. Ltd, At: Shekhpur

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 SUMUL DAIRY

Po.: Sayan,
Tal: Kamrej – 394180.
Res: 02621 – 242526
9 Shri Shivabhai Babubhai Patel Representative, Naugama Dudh
Utpadak S.M. Ltd,
At: Naugama (Nani), Po.: Simodra,
Tal: Mangrol – 394410.
Res: 02623 – 233288
10 Shri Ramanbhai Ukadiyabhai Gamit Representative, Zankhala Dudh
Utpadak S.M. Ltd,
At & Po.: Zankhala,
Tal: Mandvi – 394160.
Res: 02623 – 221396
11 Shri Bhupendrabhai Ratilal Desai Representative, Valod Dudh Utpadak
S.M. Ltd,
At & Po. Tal: Valod – 394640.
Res: 02625 – 220151
12 Shri Shantilal Kalyanjibhai Patel Representative, Bagumra Dudh
Utpadak S.M. Ltd,
At & Po.: Bagumra,
Tal: Palsana – 394315.
Res: 02622 - 263308/263309
13 Shri Arvindbhai Bhagvanjibhai Patel Representative, Rampura Dudh &
Shakbhaji U.S.M. Ltd. At.Rampura,
Po.: Varad,
Tal: Bardoli – 394602.
Res: 02622 – 220431
14 Shri Parsottambhai Mundiyabhai Padvi Representative, Umarda Dudh
Utpadak S.M.Ltd. C/o., At & Po.:
Umarda,
Tal: Umarpada.
C/o.: 02629 – 253474
15 The District Registrar Representative, The Registrar, Co-op.
Societies, Gujarat State, Gandhinagar.
Off: 0261 – 2472051

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 SUMUL DAIRY

16 Shri P. Chellapa Representative, N.D.D.B., Anand.

17 Shri K. M. Zala / S. T. Desai Representative, GCMMF Ltd, Anand.
Dr.
18 Shri Pramthesh Rameshbhai Patel Managing Director, Ex. Officio Member
Secretary, SUMUL DAIRY, Surat.
Res: 0261 - 2422180/2422137

2.10 ORGANISATION STRUCTURE OF SUMUL:-

BOARD OF DIRECTORS

CHAIR PERSON

MANAGING DIRECTOR

GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGERS

DEPUTY MANAGER

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 SUMUL DAIRY


ASSISTANT MANAGER

SENIOR EXECUTIVE OFFICER

EXECUTIVE OFFICER

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

SENIOR ASSISTANT

JUNIOR ASSISTANT

TECHNICIAN – 1 & 2

WORKMAN – 1, 2, & 3

2.11 DETAILS OF COMPETITORS IN MILK

PRODUCTS: -

SUMUL is producing many milk products like ghee, milk powder,

panner, butter, dahi etc. So, there are several competitors in milk
products against SUMUL.

COMPETITORS COMPETITION IN MILK PRODUCT

NESTLE GHEE AND MILK POWDER
BRITANIA DYNAMIX GHEE
AMUL SHREE KHAND, FLAVORED MILK, GHEE
SHUFFLE PANNER

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 SUMUL DAIRY

SAGAR GHEE, PANEER, MILK

INDIANA GHEE
VARDHAMAN GHEE
GOKUL GHEE

OBJECTIVES OF THE PROJECT

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 SUMUL DAIRY

OBJECTIVES:

We have chosen this topic in order,

 To study functional areas of sumul dairy like Production

department, Human resource department, Marketing
department, Finance department, etc.

 To know about dairy industry as a whole and in particularly in

Surat district.

 In partial fulfillment of the requirement of the degree of

bachelor of business administration.

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 SUMUL DAIRY

METHODOLOGY OF THE PROJECT

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 SUMUL DAIRY

METHODOLOGY :

The methodology, which is also known as the systematic

procedure, which is followed for this marketing research project
includes steps which are as follows:-

 Problem definition
 Development of an approach to the problem
 Research Design
 Determining the sources of data
 Determining the sample design and sample size
 Data collection method
 Analysis and presentation of collected data

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 SUMUL DAIRY

Problem Definition:-

To knowledge and study different functional areas of Sumul

Dairy.

Basically there are two types of data i.e. primary and

secondary: -

 Primary Data Collection

 Secondary Data Collection

Primary Data:

Primary data are those data which are collected for the first time for
the use of project on hand. There are two methods for collecting
primary data are observation & survey.

Primary data collection contains the following two types of methods:

-

1. Observation Method:- It contains Casual

observation, Systematic observation, direct observation and
contrived observation.

2. Survey Method:- It contains Personal Interview,

Telephone Interview and Mail Interview.

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 SUMUL DAIRY

Secondary Data:

It can be collected from internal as well as external sources

1. Internal Source Various internal sources like employee,

books, sales activity, stock availability, product cost, etc.

2. External Sources Libraries, trade publications, literatures, etc

are some important sources of external data.

 Primary data are used for the core purpose of the project.
And this Primary data has been gathered by survey method.

LIMITATION OF THE PROJECT

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 SUMUL DAIRY

LIMITATIONS:

 As a lack of knowledge and experience we couldn’t find

proper methodology of project.
 We have not enough knowledge to conduct research and
survey that’s why we couldn’t conduct survey for Sumul
products in Surat district.
 As Sumul is co-operative organization we got proper support
of staff and we gathered lot of details and information but
because of plenty of data we got confused what to put and
what not to.
 We have put only important information of the project.

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 SUMUL DAIRY

 As organization is vast spread and have many units and

plants we couldn’t manage to visit and study all of them.

FINDING AND ANALYSIS OF

RESEARCH

CHAPTER CONTENTS:-

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 SUMUL DAIRY

A) PRODUCTION DEPARTMENT

B) HUMAN RESOURCE DEPARTMENT

C) MARKETING DEPARTMENT

D) FINANCE DEPARTMENT

CHAPTER CONTENT:

6.1 ACTIVITIES OF PRODUCTION DEPARTMENT

6.2 PRODUCTION PLANNING

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 SUMUL DAIRY

6.3 HOW PRODUCTION PLAN IS CONVERTED IN MATERIAL

REQUIREMENT PLAN AND ULTIMATLY IN PURCHASE
PLAN?

6.4 PLANT LOCATION

6.5 MATERIAL HANDELING EQUIPMENTS

6.6 CLASSIFICATION OF THE INVENTORIES

6.7 PURCHASE

6.8 MICRO MOTION STUDY

6.1 ACTIVITIES OF PRODUCTION DEPARTMENT:-

Along with the Production various other activities are perform by the
Production Department. All these activities are the part of Production
department. These activities are as follow:

1. Stores Management.
2. Quality Checking.
3. Packing of Finished Goods.
4. Printing on Packed Product.
5. Dispatching of Goods.
6. Washing and Cleaning of Machine & Equipments Regularly.

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 SUMUL DAIRY

7. Maintain the Machine and other equipments.

6.2 PRODUCTION PLANNING:-

The Production Manager as per the daily demand of the Sales Manager
and Marketing Manager does production Planning. After this planning is
done the order is given to the Senior Executive Officer of the Production
Department and Senior Executive Officer organise planning process.
Production planning is based on the daily requirement of
the product in the current market. If the requirement of the product is high
then Production planning is done daily and very carefully. Everyday the
Parlor Manager gives their daily demand to Sale and Marketing Manager
then Sales and Marketing Manager give that demand to the Production
Manager and after getting that demand production manager done planning
for producing demanded product. As per the demand of the product
production manager also plan for the raw material, packing material,
dispatching material, etc. and send that demand to the Store Department.
Production Planning is basically done for daily requirement
of the product. But sometime the demand of the product is weekly or
monthly so production plan is done weekly or monthly. For Example:
THE GUJARAT MILK MARKETING FEDERATION (GMMF) gives
their demand every week so the production planning for the demand of
GMMF is done on the weekly bases.

6.3 HOW PRODUCTION PLAN IS CONVERTED IN

MATERIAL REQUIIREMENT PLAN &
ULTIMATELY IN PURCHASE PLAN?

In production area the strong system procedure is followed. Every process

has their own Control charts, Variance analysis, yield analysis, Cost
analysis, Quality analysis, and Performance analysis. All packing material
purchase plan is develop by concern process in charge and send their
demand to store department. Store department is verifying it with

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specifications. They also verified stocks and if any of the stock is in scarce
then Store manager send the order of the scarce material to the Purchase
Department. In Purchase Department Purchase Manager cross-examine the
order send by the Store Manager. Then Purchase Department generated
inquiries for particular demanded material and invites the sample of the
material. Then Purchase Manager places the order to concern Quality and
performance of the particular supplier. Thus, the production plan is
converted into material requirement plan and after that in purchase plan.

6.4 PLANT LOCATION:-

Surat city is located in South Side of Gujarat. It covers total area of Surat
is 111.16 sq.km. Most of Diamond, Textile, etc. Business are well
establish in SURAT city. SUART district covers the areas like
OLPAD, NAVI PARDI, MANGROL, CHASVAD, NIZAR, UCHCHAL,
VYARA, VALOD, MAHUVA, PALSANA, CHORYASI, CHALTHAN,
BARDOLI, BAJIPURA, MANDAVI, KAMREJ and all near by villages.
SUMUL DAIRY is located near the Railway Station Road in Surat. It
covers 15,000 acre land. SUMUL provides milk collection facilities at the
producer’s door in each village cooperative, wherefrom milk is speedly,
efficiently and economically transported twice daily to its dairy plant,
chilling centers for processing and marketing. Currently 97 milk routes are
playing, keeping the criteria of optimum coverage of marketable surplus
required distance safe time limit and minimum overlapping between the
routes on economical grounds. Since the milk procurement system has
been extended far and wide in the entire district, SUMUL have five
chilling centers at BAJIPURA, UCHCHAL, NAVI PARADI, CHASVAD
and DEDIAPADA at a distance of 50, 105, 25, 110, 140 km. Respectively
from Surat city which are operated with their full capacities. And the
chilled milk from there is transported to the Dairy Plant by SUMUL’S
insulated Milk Tankers as frequently as wanted. Keeping the overall
annual milk source to a bare minimum of 0.75% of the total milk procured.
These 5 chilling centers have provided equal opportunities of milk

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 SUMUL DAIRY

marketing to the distantly inhabited tribal milk producers of else they

would have been obliged to dispose of their milk to the middlemen at very
low prices. They sell privileged milk uniformly as the other additional cost
of chilling is being borne by SUMUL.
SUMUL has procured 15,04,61,760 kg milk during the year out of which
10,09,44,886 kg i.e. 62.52% constituted buffalo milk and 6,65,91,094 kg
i.e. 37.50% constituted cow milk. Achievement in milk procurement is due
to adoption of Animal Husbandry as an effective tool for economic growth
by milk producer members and their selfless devotion towards milk
cooperative movement and also adoption of business approach by
SUMUL. SUMUL has paid on an average Rs. 215/- per Kg fat to its
milk producers/farmers. It has attained self- sufficiency in its milk
requirement. Now SUMUL is in a position to surplus milk to mother dairy
of Gujarat Cooperative Milk Marketing Federation Limited, Gandhinagar
and other District Cooperative Milk Unions in Gujarat.

6.5 MATERIAL HANDELING EQUIPMENTS:-

Material Handling is defined as Controlled movement of material, from

receipt, through storage and production and up to the shipment f finished
product. SUMUL use following classes of equipments for material
handling:

1. On the basis of the form and nature of the product.

2. On the basis of the path of the movement.
3. On the basis of the degree of automation.
4. On the basis of basic mechanism of equipments.
5. On the basis of source of power.
6. On the basis of starting point & destination of transportation.

SUMUL use the following types of equipments for material handling:

1. Pipelines

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 SUMUL DAIRY

2. Tanks
3. Crates
4. Cranes
5. Cans
6. Trucks
7. Tempos
8. Conveyor Belts
9. Bucket Conveyor
10. Trolley for Crates
11. Trolley for Cans
12. By Manually
13. Plastic Tubes
14. Glass Bottles

6.6 CLASSIFICATION OF THE INVENTORIES:-

SUMUL is classified the Inventory on the bases of two types which are as
follows:
1. Raw Material
2. Finished Goods

The Inventory in Raw Material includes followings:

a) Material use in Packing
b) Spare parts of Machinery
c) Computer Hardware
d) Special Chemical use in quality checking laboratory
e) Special Chemical use in packing finished goods
f) Stationary product
g) Electrical equipments
h) Edible essence and colors

The Inventory in Finished Goods includes followings:

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 SUMUL DAIRY

a) Milk
b) Paneer
c) Ghee
d) Flavored Milk
e) Sweets
f) Shrikhand

6.7 PURCHASE PROCEDURE:-

Store Department is checking quantity of all material and there is a unique

recording system, which is called COMPUTER ORACLE SYSTEM. This
Computer Oracle System is use for generating Indents for required
products. Indents is analysed by Material Manager (MM) and discussed
with concern department and Finally Indents is forwarded to Purchase
department. Concern Department has to receive the samples of required
material by filling of Material Issue Docate (MID) form to Store
Department. Concern Department is approved purchase material as per the
Sample of their own material. Store Department is coordinating between
Concern Department and Quality Checking Department for final approval
of purchase material. There is one report generated which is called
Material Approval Report (MAR). After making of MAR, Concern
Authority signs it and sends it with bills and challans to purchase
Department. Purchase Department is verified all documents and send it to
Account Department. After observing all documents Account Department
is making final payment to the party.

DOCUMENTS RELATED PURCHASING:-

The Documents related Purchasing are as follows:

1. Indents
2. Material Issue Docates (MID)
3. Purchase Inquiry

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 SUMUL DAIRY

4. Quality Checking Report

5. Material Approval Report (MAR)
6. Order Report

MILK PROCUREMENT SYSTEM:-

SUMUL provides milk collection facilities at the producer's door in

each village cooperative wherefrom milk is speedily, efficiently and
economically transported twice daily (both in the morning and
evening) to its Dairy Plant, Chilling Centers (whichever is nearer) for
processing and marketing currently 81 Milk Routes are playing,
keeping the criteria of optimum coverage of marketable surplus,
required distance, safe time limit and minimum overlapping between
the routes on economical grounds

As the group societies have generally adopted small and non-viable

villages for their upbringing and faster development, they manage to
procure milk economically by transporting other commodities too, side by
side with which they also deal by adjusting the type of vehicle to the actual
need. Since the milk procurement system has been extended far and wide
in the entire district, Sumul's five Chilling Centers at Bajipura, Uchchal,
Navi Pardi, Chasvad & Dediapada site, at a distance of 50, 105, 25, 110
and 146 kilometers respectively from Surat city and are operated in the
manner that their full capacities (currently 3,00,000; 1,00,000; 2,00,000;
30,000 and 30,000 litres respectively) are fully utilized and the chilled
milk there from is transported to the Dairy Plant by SUMUL’S insulated
Road Milk Tankers as frequently as warranted, keeping the overall annual
milk sourage to a bare minimum of 0.75% of the total milk procured.
These 5 Chilling Centers have provided equal opportunities of milk
marketing to the distantly inhabited tribal milk producers, which aids the
economy of their milk production enterprise or else they would have been
obliged to dispose of their milk to the middlemen at very low prices. These
under-privileged milk producers in the distant remote areas also get the

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same price of milk uniformly as the others in the rest of the areas in the
district despite the higher cost of milk transport as the additional cost of
chilling is being borne by Sumul.

By procuring milk from these villages of the District, SUMUL reversed

the trend of negative economy of these milk producers from a milk
production enterprise and implanted the firm roots of a flourishing milk
production economy in these up-coming areas in a uniform manner to
bring these people into the socio-economic main stream of the Country.

Under the agreed terms and conditions of milk transport, various risk such
as spilling or spoilage of milk or damage to milk cans in accident or
sourage of milk due to contractor's delay in the transport or pilferage or
adulteration of milk in transport etc. is borne by the contractors. In non-
approachable villages by road, head-load cost of milk transport is also
borne by the Union. Since the contractors have their regular, assured and
remunerative business in transport of milk, they conscientiously perform
the above task giving rise to least problems of the above nature
consequently, the figures of overall Fat% and SNF% in both buffalo and
cow milk procured by SUMUL during the year, match with normal milk
standards (i.e. buffalo milk 6.8% Fat, 9.0% SNF, cow milk 4.3% Fat,
8.5% SNF) which aids the Union in marketing good quality milk and milk
products.

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 SUMUL DAIRY

MILK CYCLE:-

⇒ STEP 1
A Machine milking the Cow at Village level.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 2
Milk Producers' Cooperative Ltd. collects the milk from all the
villages.

(source: photo has taken from CD provided by Sumul Dairy)

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 SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 3
The collected milk is tested against the set standards. That insures
quality of milk being received from the root level.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 4

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The received milk is sold locally as well as transported to the dairy

for the further processing.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 5
The milk is tested in dairy lab. No compromises with the quality of
milk being received.

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 SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 6
The qualified milk is received at Raw Milk Receiving Dock at Dairy.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 7
Cleaning Process at dairy.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 8

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 SUMUL DAIRY

Milk is pasteurized, clarified, and standardized using latest

technological machines & equipments.

(source: photo has taken from CD provided by Sumul Dairy)

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 9
Milk again tested before being packed in the SUMUL’S Laboratory.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 10

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 SUMUL DAIRY

Pouch filling for the last users at the Packing Department at

SUMUL.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 11
Packed milk stored in well-maintained cold storage of SUMUL.

(source: photo has taken from CD provided by Sumul Dairy)

⇒ STEP 12
Milk dispatched for the sales in the market of Surat from the
Dispatch Department in the SUMUL’S trucks.

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 SUMUL DAIRY

(source: photo has taken from CD provided by Sumul Dairy)

6.8 MICRO MOTION STUDY :

During the visit to the production plant we have done micro motion
study of a worker whose work was to take the milk pouched from the
machine and the keep them on crate, which uses to come serially on
the belt conveyors. The position of the person was such that it to very
less time.

The pouches of 500 ml were filled in Polly bags, sealed and ready pouches
were thrown though the pouch-filling machine.

1. First of all we caught the two pouches in one hand and again
two pouches with other hand (5 sec)

2. Then he kept all the four pouches together in the crate coming
over the Belt conveyor. (4 sec)

3. He again tuned and caught all the four pouches with two hands.
(5 sec)

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 SUMUL DAIRY

4. And again kept all the four pouches together in the crate
coming over the Belt conveyor. (4 sec)

The entire process was completed in 18 sec.

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 SUMUL DAIRY

TOTAL QUALITY MANAGEMENT:-

SUMUL’S Union has adopted International Standards for Quality

Management. QAS Australia has certified SUMUL’S quality management
systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. By
adopting quality management system, SUMUL’S Union has standardized
all process and procedure system for production of milk and milk products.
As usual, it is easy to design system but difficult to implement it. But with
active Participation and dedication of SUMUL’S workers and staff & with
better leadership & guidance of Board of Directors, Officers, Continuous
training programs under TPM and GMP, SUMUL has successfully
Implemented ISO Standards. At every six months interval, Total Quality
Management System has to be audited and if found proper as per standard
Quality Management norms then certification are renewed. We have
received continuous renewals.

INTERNATIONAL I.S.O – 14001 CERTIFICATION FOR

ENVIRONMENT CONTROL.

Accreditation of ISO 14001 certificate is a testimony of commitment

towards the customers of SUMUL for 100% quality safe milk and milk
products. By complying with Terms and Conditions of ISO 9002, ISO
14001, HACCP, Quality Management and Environment Control, Union
has undertaken various measures for fully automation in their various
production line, installation of Automatic Machinery in various production
line is in progress.

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 SUMUL DAIRY

QUALITY POLICY:-

SUMUL DAIRY developed, Devoted, Dedicated and Motivated

Workforce trained to ensure consistent supply of safe and good quality
milk and milk products to achieve highest level of customer satisfaction.

SUMUL will achieve this by continuous monitoring and upgradation of

producers and processes applying scientific innovations and state of the art
technology, and remain esuriently.

OBJECTIVES OF QUALITY DEPARTMENT:-

The main Objective of SUMUL’S Quality Department is as follow:

a) To Understand and Meet Customer Needs.
b) To Develop Competency of employees for continual improvement
of their Performance and Effectiveness.
c) To Demonstrate continual Improvement of process based on
Objectives.
d) To Review food safety and Quality Management System for
Improvement.
e) To apply scientific Innovations and State of Art Technology.

QUALITY ASSURANCE:-

SUMUL believes in Total Quality Management (TQM). it takes almost

care to provide best quality milk and milk products to the customers.

 ACTIVITIES OF QUALITY ASSURANCE:-

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 SUMUL DAIRY

Quality Assurance Manager performs following activities:

1. To test the specifications of raw material.
2. To suggest the production department for producing products as
per the parameters tested.
3. To test the parameters of finished products before packing.

 WHICH PARAMETERS ARE TESTED IN Q.A. LAB.:-

1. Proteins
2. SNF
3. Fats
4. Acidity
5. Neutralisation
6. Colour
7. Smell
8. Additives
9. Bacterial Percentage
10. Moisture Percentage
11. Flavor
12. Yeast
13. Mold

VALUE ADDITION OF MILK AT DIFFERENT STAGE:-

⇒ CLARIFICATION: ~
Milk is clarified to remove unseen dirt and dust or foreign material, which
may be harmful to our body.

⇒ PASTEURISATION: ~

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Milk is pasteurized to kill all pathogens (Harmful bacteria) for our body
and this process is ensured through automatic Controller (Flow Diversion
valve) which allow only pasteurized to tank for packing.

⇒ CONSISTENCY: ~
SUMUL have certified ISO-9002 Quality System and HAACP (Food
safety) and SUMUL have undergone through Inspection audit,
Surveillance audit. SUMUL have also internal quality audit system for
Continuous Improvement and effectiveness of Corrective action.

⇒ STANDARDISATION: ~
Milk is being standardized according to type of milk and set standard as
per ISO and PFA. Standardized Milk is checked through MILKO SCAN
(like Body Scan), which ensure standardization of each constituent of
milk. This type of Machine is available to us only in this region. Small
Organisation cannot have this type of machines because its cost is RS.
30,00,000.

⇒ BACTERIOLOGICAL LABORATORY: ~
SUMUL have well established bacteriological Laboratory to ensure safe
milk supply to its valued customer.

⇒ STAFF: ~
SUMUL have highly qualified staff that ensures each test and process in
compliance with set standard. Each employee has undergone for TQM
(Total Quality Management), Training and work for Kaizen (continuous
improvement) For Value or Money for Customer.

The whole Process in the dairy is done through SS Pipe only and nowhere
it is touched by hand.
The equipment Cleaning is done through Centralized automatic CIP unit.

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The packaging is done through automatic volume control machine with

high accuracy.

House keeping and Good Manufacturing Practices (GMP) have become

Part and parcel of Routine work.

Each employee working in plant is examined for his health condition by a

group of doctors at regular interval.

PLANT LAYOUT:-

DAIRY PLANT TO MARKET LEVEL:-

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 SUMUL DAIRY

Milk Receiving Testing of Milk

Processing Processing

Processing Packing

Delivery Storage

Market

PROCESS FLOW FROM VILLAGE TO CHILLING

CENTRE:-

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 SUMUL DAIRY

Milking by Producer Producer approaching DCS

Collection at DCS Grading & Testing at DCS

Transportation to Chilling Centre

Testing at Chilling Centre Receiving at Chilling Centre

Transportation to Dairy Plant

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 SUMUL DAIRY

CHAPTER CONTENT:

6.9 HUMAN RESOURCE ACTIVITIES

6.10 MANPOWER PLANNING

6.11 RECRUITMENT AND SELECTION PROCESS

6.12 TRAINING AND DEVELOPMENT

6.13 EMPLOYEMENT RELATION

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6.9 HUMAN RESOURCE ACTIVITIES:-

SUMUL believes that the most significant resources are its Human
Resource and SUMUL’S success in the long run depends very
much on the quality of its human resources. Human resources
comprise the aggregate of employee attributes including
knowledge, skill, experience and health, which are presently and
potentially available to the organisation for the achievement of its
goal, objectives and service to the society.

To achieve this and to diffuse the effect of Global Competition,

Sumul has adopted the latest concepts of Management practices
and provided appropriate training with the help of leading institutes
from time to time for up-gradation & development of its Human
resource. Other activities which are followed by the H.R.D. & E.R.
are as follows:

 Recruitment and Selection

 Performance Appraisal
 Promotion
 Transfer
 Demotion
 Welfare Activities
 Training and Development
 Induction Training
 Employee Relation
 Motivation System

All the activities of H.R.D. & E.R. Department are done under the
Factory Act. The organisation has to follow all the rules of Factory
Act. If they disobey any rules of Factory Act, The organisation has
to pay penalty.

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6.10 MAN POWER PLANNING PROCESS:-

First of all the organisation follow man power planning process

through which they find man power planning or sources for the
organisation.

 The man power process is done by the Managing Director or

Board of Directors.
 If the necessities arise in any department of the organisation
then the Head of that department tells to the Managing
Director.
 Then, the Managing Director gives response in Yes or No. If
the Managing Director gives response with Yes, then the
Head of that department will follow the recruitment process,
or if the Managing Director gives response with No then they
will stop their process.

6.11 RECRUITMENT PROCESS:-

There are two ways for recruitment process which are mentioned
below:
 Internal Recruitment
 External Recruitment
Both the types of the recruitment process are used in the
organisation.

 INTERNAL RECRUITMENT: ~

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Generally internal recruitment is done by the promotion and training

programs which are under taken by the organisation.

 EXTERNAL RECRUITMENT: ~
External recruitment is done by three major types which are
mentioned below:

 ADVERTISING: ~
The organisation gives advertisement in the newspapers.

 EMPLOYMENT EXCHANGE: ~
With the help of these types of agencies which provide a wide
range of services, counseling, assistance in getting jobs, and
information regarding labour market, labour and wages rates etc.

 CAMPUS INTERVIEW: ~
The authorities of the organisation visit the S.M.C. Technical
College at ANAND or educational institutes and arrange the
campus interviews for recruiting best candidates.

SELECTION PROCESS:-

By considering the following steps the selection process is done:

 First of all they see the response form the candidates i.e.
how many applications are collected for the job.
 Then, they send call letters to qualified and experienced
candidate.
 Then, interviews are done. Interviews are done by the
committee members in which M.D., B.O.D. or SUMUL’S
higher authority persons are included.
 Then, they sent appointment letter to the short listed
candidates.

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DOCUMENT RELATED TO RECRUITMENT AND

SELECTION:-

The organisation keeps the records of recruited and selected

employees for the job.
 They keep a separate file for the application of candidates.
 They keep file for the call letters of selected candidates.

PERFORMANCE APPRAISAL
PROCESS AND DOCUMENTS:-

Performance of the employees is done and the employees always

perform better for that they decide increments. The organisation
decides increments in three ways:

 After completing the recruitment and selection procedure the

performance of the applicant can be checked. The
organisation gives them a special project to complete. After
completing the project, it can be checked by the authorised
person of that department. If the trainees complete their
projects satisfactorily then, they are appointed otherwise they
are terminated from the organisation.

 ACCORDING TO PERFORMANCE: ~
The organisation decides increments according to the performance
of the employees. How they behave with others? , Are they finished
their work in given time with satisfactorily? etc. According to this the

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organisation decides the increment. For that they keep record of the
employees in separate file.
 ACCORDING TO PERFORMANCE FORM: ~
The organisation issues the performance form. In this form all the
information regarding the employees are included. The forms are
submitted to M.D. If the M.D. tells yes, then the employees get their
increment. If the M.D. replies in no, then the head of the department
discuss with the M.D., how to improve the performance of the
employee.

PROMOTION POLICY:-

This is not working as PUBLIC sector but it is a Co - 0perative

sector. According to the performance of the employee, promotion is
given. It is not necessary that the employee will get promotion. The
organisation gives upgradation. Upgradation means without change
of job movement of an employee to a higher pay scale. The
organisation decides upgradation two times:
 After 14 years
 After 23 years, in this upgradation if someone is Senior
Executive, he will become an Executive Officer.

TRANSFER POLICY:-

According to working scenario, the organisation will do transfer and

it is cleanly mentioned in the appointment letter.

DEMOTION POLICY:-

There is no as such demotion policy in the organisation and there is

no also V.R.S. scheme in the organisation.

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DIFFERENT WELFARE ACTIVITIES:-

The organisation does so many welfare activities for human

resources and these activities are given below:
 REST ROOM: ~
The organisation provides a separate rest room for the employee to
take rest their after a long hours or after lunch time.

 CANTEEN FACILITY: ~
The organisation provides the canteen facility for the employee for
their break fast, lunch and dinner at very economical rate.

 VEHICLE PARKING FACILITY: ~

The organisation has a very large parking facility for their
employees’ and visitors’ vehicles.

 HOUSING FACILITY: ~
The organisation provides the housing facility for their employees
near the organisation so that they can easily and on the time reach
at the organisation. The organisation has quarters for their
employees.

 WASHING FACILITY: ~
Clothes washing facility is provided by the organisation for their
employees.

 LOCKER FACILITY: ~
The employees have to work without any gadgets and they have to
wear the uniform of the organisation, so that for the safety of their
clothes and gadgets, the organisation provides locker facility in
which the employee put their clothes and gadgets.

 UNIFORM, SHOES, CAPS AND RAINCOAT: ~

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All the employees are provided uniforms, shoes, caps and raincoats
by the organisation.

 HOUSE RENT FACILITY: ~

The employees who are living in rental house, for that the
organisation provide house rent facility.

 DEPARTMENTAL STORE: ~
To purchase the necessary items at economical rates, there is
KAMDHENU departmental store in the Staff Ready Credit Society
Staff Quarters, for the employees.

 DRINKING WATER FACILITY: ~

To provide the child water facility to the employees, the organisation
has neat and clean water cooler facility in the different departments.

 FUNERAL FUND FACILITY: ~

The organisation provides the “Funeral Fund Facility” for the
employees. For this fund the employees have to contribute Rs. 10
and the employers have to contribute Rs. 20. The employees get
different benefits from this fund which are mentioned below:
 On the death the employees, Rs. 7,000 will be
provided by the organisation from this fund or on the
death of any family member from the employee’s family
then the organisation provides Rs. 2,000.
 The organisation provides loans for the children
of the employees for education. The organisation
provides Rs. 10,000 for the technical stream students.
The employee has to repay the loan amount in 36
installments.
 For the employees medical treatment the
organisation provides the medical expenses.

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 On the retirement of the employee, the

organisation provides a cheque from this fund.

 VEHICLE LOAN FACILITY: ~

The vehicle loan facility is only provided to executives only not for
the employees.

 MEDICAL FACILITY: ~
If any accident occurs during the working hours in the organisation,
the organisation provides this first aid facility to the employee for
their quick remedy. Sumul Ambulance Centre, Group Insurance,
Regular Medical Checkup & X-ray, helping to prevent bad habits,
Superannuation Scheme takes care as a preventive approach
towards the medical & health of the employees.

 SAFETY FACILITY: ~
SUMUL has made provision for a Safety Officer who is qualified in
the Safety aspects and employees are provided with Safety
equipment & devices for usage at appropriate places. Safety in
observed in terms of "Safety for All" wherein Safety is not only for
its employees but also for the safety of Physical material like -
Equipment's, Building, Materials and the Safety of the Products
which is supplied to the customers. For food safety the organisation
is already HACCP certified. For updating the employee's knowledge
on Safety aspects, programs on Safety awareness are organized
regularly.

 OTHER FACILITY: ~
In the mandatory, the organisation provides pension, gratuity,
provident fund facility, etc. Other Welfare provisions includes
Employees Credit Society and provisions for Medical Loan,
Educational Loans, Subsidized Stationery items, Retirement
benefits through "SURAT JILLA SAHAKARI DUDH UTPADAK

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 SUMUL DAIRY

SANGH LTD. SARVAJANIK CHARITABLE TRUST" are extended

to the employees as well as their family members.
For further improving involvement of its human resources, Sumul
sponsors its employees for Higher Education, promotes
participation through competition, arranges visits and programs for
Sharing experiences with other organisation, recognizes & rewards
achievements in programs, conducts meeting with MD & different
committees, underges wage settlements directly with employee
representatives, Shares information through In-house magazine
"SUMUL SETU".

EMPLOYEMENT RECORDS KEPT:-

After the selection of employee when he is joining the organisation,

the employee has to submit a form which contains some
information regarding his personal life or some other information
which is stored in computer and is maintained by establishment
sector. This form contains the following information:
 The name, birth date, age, height, weight, passport size
photo, power of classes, marks of identification, present
address, permanent address, nationality, father’s name,
marital status, etc.
 The academic data, percentage obtained in S.S.C., other
vocational qualification, past and present employment data,
language known, hobbies and interest, information regarding
accomplishment, achievement, reference, etc.
 Attach certificate/Xerox copy of certificate in support of age,
academic qualification, experience, etc.

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6.12 TRAINING AND DEVELOPMENT:-

In the organisation the employees are trained at three different

levels:
 C.E.O. or top management training
 Officer training
 Senior executive training

 C.E.O. OR TOP MANAGEMENT TRAINING: ~

The top management training or C.E.O. training is given for six
months.

 OFFICER AND SENIOR EXECUTIVE TRAINIG: ~

The management development program organised by the institute
for the training of officers and senior executive and they have to
attend the program.

INDUCTION TRAINING:-

The induction training means to introduce the new employee with

the organisation and colleagues so that he/she easily join their work
without feeling nervousness.
 In SUMUL there is 7 days of induction training program.
 First of all the new employee is introduced with the
organisation.

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 SUMUL DAIRY

 Then, the employee is oriented with the higher management

and other department.
 Then, he/she is introduced with his/her department and their
colleagues.

6.13 EMPLOYEE RELATION:-

In SUMUL there is no department called “INDUSTRIAL RELATION”

but they perform in “EMPLPOYEE RELATION”. Thus, in SUMUL
the name of this department is “H.R.D. AND E.R. (Human Resource
Development and Employee Relation Department)”. The
organisation does not have to perform any activities for the trade
unions, because the organisation does not have any trade unions.
The organisation performs different activities for the employee
relation some of them are mentioned below:

 SOCIAL SECURITY MEASURES: ~

The organisation does many activities for social security measures:
 The organisation takes steps to prevent the residential from the
pollution.
 They also take care for no disturbance to residential.
 The organisation also does the plantation programs. On the
SUMUL DAIRY ROAD all the plantation is done by the SUMUL.

Sumul Dairy’s Contribution towards Society:-

Sumul dairy organizes some activities and programs for welfare of
society.
Like:
- Healthy baby contest.
- Free distribution of milk to needed.
- Loans and cattle feed to poor farmers and insurance.

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 SUMUL DAIRY

- Animal husbandry.
- Regular health check up for cows and buffaloes.
- Eye check-up camp.

We can understand it by seeing the following data. From 1rs. Of

income Sumul pays more than 83% to farmers. And very few
amount spends on other activities.

FROM WHERE RS.1 COME (INCOME):-

PARTICULARS PAISE
MILK SALE 0.77
PRODUCT SALE 0.17
CLOSING STOCK 0.05
OTHER INCOME 0.01

0.05 0.01 WHERE 1 rs. COMES

0.17

MILK SALE
PRODUCT SALE
CLOSING STOCK
OTHER INCOME

0.77

WHERE RS.1 GOES (EXPENDITURE):-

PARTICULAR PAISE
MILK PURCHASE 0.83
SALARIES / WAGES 0.04
PACKING 0.03
TRANSPORTATION 0.02
RESEARCH & DEVELOPMENT 0.02
WATER, ELECTRICITY, FUEL 0.02

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 SUMUL DAIRY

PROCESSING 0.01
MAINTAINANCE 0.01
DISTRIBUTION 0.01
DEPRECIATION 0.01

WHERE 1 rs. GOES MILK PURCHASE

SALARIES / WAGES

0.01 PACKING

0.01 0.01 0.01 TRANSPORTATION

0.02
0.02
RESEARCH &
0.02 DEVELOPMENT
0.03 WATER, ELECTRICITY, FUEL
0.04
PROCESSING

MAINTAINANCE

DISTRIBUTION

DEPRECIATION
0.83

 LEADERSHIP AT VILLAGE LEVEL:-

In order to develop village level leadership, SUMUL is conducting

various developmental training programmes. These training
programmes provide training in understanding of farmers’ need.
Training programmes perform a good role for the people of rural
area. For the Leadership training programmes in rural area, a
Chairman of milk societies creates a team. From amongst chairman
of private milk society, the district level leadership emerges. This
district level leadership is now B.O.D. and they are elected by the
farmers’ representatives. SUMUL is conducting various
programmes since 1992 are as follows:
 Women and member education class.
 Committee member education class.
 Society staff training class.

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 Leadership development class.

 Women/member follow up programmes.
 Milk day programmes.
 Clean milk production programme.
 Women dairy leadership development programmes.
 Vision – Mission programmes.

 MOTIVATION SYSTEM: ~

The employees are motivated through ways in the organisation

which are mentioned below:
 Financial Motivation
 Non Financial Motivation

 FINANCIAL MOTIVATION: ~
In financial motivation only increment is given to the employees.
The increment is decided two times by the organisation:
 In January
 In July
If the employee joins the organisation between 1st January to 30th
June, then his increment will count in July and vice versa.

 NON FINANCIAL MOTIVATION: ~

The non financial motivation is given to the employees in many
ways:
 If the employee’s grievances are low but he/she is satisfied with the
jobs and colleagues then he/she is motivated to work hard.
 The employees and workers are free to talk with the M.D. to discuss
their problems.
 If the performance of any employee is poor in the organisation then
there is personal counseling is done. The M.D. and other authority

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try to understand the employee’s problem and then, the employee

is given enough time to change himself and attitude.

All these HR efforts have resulted into Cost cutting as continuous

process, improvement in Overall Equipment Efficiency, more
delegation down the level, positive attitude, improvement in habits,
and reduction in absenteeism of employees, improved Internal &
External Customer Satisfaction, and ultimately SUMUL’S achieving
awards year by year.

CHAPTER CONTENT:-

6.14 PRICE, PRODUCT, PLACE AND PROMOTION

6.15 SEGMENTATION AND TARGET MARKET
6.16 SUMUL MILK MARKETING
6.17 CUSTOMER SATISFACTION

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6.14 PRICE, PRODUCT, PLACE AND PROMOTION:-

PRICING POLICY:-

The pricing policy of SUMUL is fixed. It is based on the GUJARAT

CO – OPERATIVE MILK MARKETING FEDERATION’S (GCMMF)
structure. The pricing policy should include the production cost,
transportation expenditure i.e. from the manufacturer to distributor
and further. It should include the commission of the agents and
profit margin of the firm.

PRICE = PRODUCTION COST

+ TRANSPORTATION EXPENDITURE
- COMMISSION
- PROFIT MARGIN

[NOTE: ~ This information is collected from the secondary source.]

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 SUMUL DAIRY

Products Mix: “The set of all products and items that a

particular seller offers for sales to
buyer.”

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 SUMUL DAIRY

Milk
Liquid Milk Products Self
Developed
Products
Butter Milk
Whole Milk
Paneer
Ghee
Pasteurized
Standard Flavors Milk
Milk White Butter

Sweets
Homogenize Skimmed
d Toned Milk Milk Powder
Shrikhand

Skimmed
Butter Milk
Milk Sumul Sugar

Cow Milk Sumul Tea

TYPES OF PRODUCTS: ~

1. SUMUL FRESH MILK

 SUMUL MILK

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Milk Products
 SUMUL DAIRY

 SUMUL D’LIGHT

SUMUL ESL MILK (1 LT)

2. SUMUL FLAVOURED MILK

 SUMUL JOM (POUCH) (200 ML)

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 SUMUL DAIRY

 SUMUL JOM (BOTTLE) (200 ML)

 SUMUL JOM (ESL) (1 LT)

 SUMUL JOME (ESL) (200 ML)

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 SUMUL DAIRY

3. SUMUL MILK PRODUCT

 CHASS

 MASALA CHASS

 MITHI CHASS

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 SUMUL DAIRY

 SUMUL GHEE

 SUMUL PANEER

 GULAB JABUN

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 SUMUL DAIRY

 RASGULLA

 MALAIPURI

 SUMUL GHARI

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 SUMUL DAIRY

 ELAICHI PEDA

 KESAR PEDA

 ELAICHI SHRIKHAND

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 SUMUL DAIRY

 KESHAR PISTA SHRIKHAND

 ANGOOR RABADI

4. SUMUL TEA & SUGAR

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 SUMUL DAIRY

 SUMUL SUGAR

 SUMUL TEA

Channel of Distribution (PLACE):

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 SUMUL DAIRY

Dairy Agent Customer

1. Direct
2. Indirect

1. Direct Distribution Channel :

Sumul is handling 1900 outlets for selling their

buttermilk, tea and sugar.

2. Indirect Distribution Channels :

Sumul is distribution various products that are milk & other

than milk there are 3 major distributors in Surat city & 19
distributors in rural areas. All dairy co-operative society acts
as a distributor for all Sumul products. In Surat city Sumul is
creates 3400 outlets; Sumul has their own 44 milk parlors
which are in direct contact with the customer.

Information technology growing very fast and Sumul always

ahead in technology. Customer should be got advantage of
these technologies for this reason Sumul Started online
shopping facility to Direct Customer as well as Distributor
and parlor also net facilities like.

Direct Customer www.sumuldairy.com

Distributor and parlor www.b2bsumul.com

PROMOTION ACTIVITIES:-

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SUMUL is doing so many types of promotional activities one of

them is mentioned here:
 Purchasing of 2 LTS. GHEE in tin gets FREE 50 GR. TEA
– 2 PKTS.
 Purchasing of 1 LT. + 1 LT. GHEE in tin gets FREE 50 GR.
TEA – 1 PKT.
 Purchasing of 1 LT. + 1 LT. GHEE in pouch gets free 50
GR. TEA – 1 PKT.
 Purchasing of 500 ML. + 500 ML. GHEE in pouch gets free
50 GR. TEA – 1 PKT.
 Purchasing of 4 pouches of 200 ML. GHEE gets free 50
GR. TEA – 1 PKT.

Sumul also organizes promotion activities like:

 Take part in Exhibitions.
 Free distribution of flavored milk in
Schools in some occasions.
 Invite School / Colleges to visit their plant.

6.15 SEGMENTAION AND TARGET MARKET:-

Every month SUMUL is organising survey programmes to know

their market share. All the records are done in ORACAL system.
The employees of the organisation approach to the consumers by
many ways:
 Giving advertisement in local T.V. channels
 Advertising by hoardings
 Rasoi contest
 Partners of change
 Paneer show
 Home visiting

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Thus, by doing different types of programmes and advertisement

SUMUL know their market share. In Dairy Industry SUMUL Dairy is
wide term. SUMUL has the market leaders in almost each dairy
product in Surat District:

PRODUCT MARKET SHARE

MILK 70%
PANEER 50%
GHEE 70%
SHRIKHAND AND SWEETS 15%

6.16 SUMUL’S MILK MARKETING:-

SUMUL’S milk marketing in Surat city is monitored, eliminating
costly sales-booths and through regular and assured twice a day
supply of milk to 1662 concessionaires (Agents) and 198
institutional buyers, through 85 contractors' route vehicles. There is
guaranteed cash inflow of the sales proceeds on day-to-day basis
and safe return of crates etc. to the Dairy. The
standardised/pasteurized milk is despatched to the city twice a day
to the network of concessionaires (selling it on behalf of SUMUL on
a commission basis). The institutional buyers are supplied milk in
sealed cans. Contractors' trucks carry milk from the Dairy Plant to
the places of these concessionaires who cater to the domestic
demand of milk in their respective earmarked areas.
Both economic and operational advantages of keeping the sales-
counters at the residential places of the Agents are distinct as:
 No creation OR maintenance of these sales-counters is
involved.
 All time security of milk, material and money.
 Operational convenience to deliver milk and off take of crates
etc. from these permanent places at any time, including odd
hours

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 SUMUL DAIRY

 Utilization of Agent's family, labour and residential place and

hence very economic operation for them and the Dairy.
 Familiarity of the Agents with the locality and vice-versa and
hence smooth dealing under mutual confidence.

The institutional buyers include hotels, restaurants, canteens,

hostels, charitable institutions, milk vendors etc. who enter into
contract for purchase of milk for the entire year and receive milk as
per the contract, twice-a-day, in sealed cans, through the
contractors' milk routes and make the full payment to the Dairy
Representative just at the time of delivery of milk to them.
The Contractors are responsible for any shortage, breakage OR
pilferage of milk and material occurring during transportation. While
the Agents hold the responsibility of any such incidence occurring at
their level. There is regular, assured and smooth in-flow of cash
from milk sales from the Agents to the Dairy's Cash Collection
Centers on day-to-day basis without involving a bank for collection
of sales-proceeds and maintaining individual accounts. Milk
delivered to these Agents during the day is sold by the Agents and
the sale-proceeds are deposited by them daily at the nearest Cash
Collection Centre of the Dairy. These Centers are run by the Dairy
for all 365 days in a year for regular day-to-day receipt of cash
amount. For any default on the part of the Agent, such as non-
payment or short-payment of cash, corrective action is taken almost
instantaneously by the Dairy. Normally, such incidents are very few
and far between and are rectified without any problem.
With day-to-day contacts and experience, all the Agents are known
and SUMUL’S money is held to be quite safe with them since the
cost of three days milk supply is taken as deposit from them in
advance. They are paid interest on this and it is distributed to them
yearly by adding it to their milk commission.
SUMUL also encourages a small Savings Scheme for the Agents
by deducting a particular amount from their commission every

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 SUMUL DAIRY

month and transferring the same into their deposit amount, thereby
allowing the deposit to build-up every month, which gets additional
security to the Dairy as well as to these Agents. Any amount in
excess of three times, the realisation from the daily sales can be
withdrawn by the Agent any time during the year. Currently the
commission of 40 paisa per liter is paid to the Agent.

6.17 CUSTOMER SATISFACTION:

Needs:
 Hording & banners of Sumul products are used
for advertisement.
 Change have been done in packing & slogans of
few production
 Door to door advertisement is done for new
products.
 Facility of taking loans from bank for vehicles &
refrigerators are given to agents.
 The schoolboys & girls, who are the future
customer, are educated about Sumul milks &
milks products & its purity.
 A mobile van with facility to test milk, show films
to customer & address public regarding the
hygienic aspects of Sumul milk.
 Cash center has been opened in different areas
& through bank so that the agent can deposit
their cash daily.

Feedback

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 SUMUL DAIRY

 After personal visit to customers & explaining the

causes of complaint.
 Replacement is given for storage milk or low
weight milk pouches.
 If agents changes more than MRP than they are
fined & even terminated.
 Agents may also be terminated for his unwanted
behavior.
 Customer satisfaction is most important for the
organization.
 The organization goes for consumer survey to
know their preferences & intended Demand.
 A separate wing is creating in the sales
department who takes care of customer
complaint. Consumer forums in different areas
are formed and regular meeting are organized to
address their grievances.
 Complains are received either by the letter or
telephone.
 Complains are entered in to the customer
complaint resister.
 Seeing the nature of complaint, action is taken.

Complain:
 Curding of milk
 Low weight
 Price changed by the agent more than MRP
 Agent’s Behavior
 Leakage

Complain Process Steps:

 Receive the complain
• Complains are received either by the letter or
telephone.
 Complaints are entered in to the customer complaint
resister
 After the proper evaluation of complains the
necessary steps or action are taken by the
marketing department.

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CHAPTER CONTENTS:-

6.18 FINANCIAL DATA

6.19 BUDGETING

6.20 FINANCIAL AUDIT

6.21 RATIO ANALYSIS

6.22 WORKING CAPITAL

6.18 FINANCIAL DATA:-

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 SUMUL DAIRY

Cost is one of the main factors affecting finance department. There

are lots of control techniques through which companies can control
their cost. Costing is the factor that affects the pricing as well as
profits of the company. If the costs are controlled then the company
can fix competitive price and achieve targeted returns. If the
company is able to get the cost at minimum level then can get an
additional benefit over their competitors. To control Cost Company
might have to:

1. Replacement of worm out machines and equipments with

new ones.
2. Make or buy decision
3. Extension of existing production plant.
4. By having latest technology machines and equipment.
5. By producing large quantities of products.
6. Controlling the inventory levels.
7. To do investments where maximum returns can be achieve.

Cost Structure of Product:

Production cost
+ Transport expenditure
+ Profit Margin
+ Commission

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6.19 BUDGETING:-

BUDGET OF YEAR 2008-2009

N Particulars Sumul Sumuldan Food Total

Dair Factor pack
y y agin
g
- Surat - Chalthan Rs (in
Station lac
Rs (in Rs. (in lac) )
lac) Rs. (in
lac)

Purchase and
Expenses: -
1 Milk purchasing 54250 8725 1160 64135
2 Transport Expenses 1330 1330
3 Research & Developement 1355 1355
4 Processing Expenses 665 80 745
5 Packaging Expenses 2000 575 10 2585
Total of 1 to 5 No. 59600 9380 1170 70150
6 Light and Water 970 215 1185
7 Salary 1600 115 4 1719
8 Provident Fund 500 32 1 533
9 Repairing Expenses 570 80 1 651
10 Distribution Expenses 720 180 2 902
11 Stationary Expenses 65 5 1 71
12 Insurance 150 10 1 161
13 Municipal tax 25 5 30
14 Audit fees 60 10 70
15 Other Expenses 60 2 1 63
16 Interest 300 15 2 317
17 Depreciation 600 75 2 677
18 Provision for Income Tax 60 60
5680 744 15 6439
Total of No.6 to 18
19 Surplus per Profit 170 26 15 211
Total 65450 10150 1200 76800
1 Sales 65000 10100 1195 76295
2 Other Income 450 50 5 505
65450 10150 1200 76800
Total

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 SUMUL DAIRY

CAPITAL BUDGET OF YEAR 2008-2009

N Amount Amount
O. Particulars (Rs. in lac) (Rs. in lac)
1. SUMUL DAIRY SURAT:
MACHINARY 952.00
BUILDINGS AND ROADS 261.50 1213.50

2. BAJIPURA SHIT CENTER:

MACHINARY 32.00
BUILDINGS AND ROADS 80.00 112.00

3. UCHHAL SHIT CENTER:

MACHINARY 17.50
BUILDINGS AND ROADS 86.00 103.50

4. SUMULDAN FACTORY
CHALTHAN:
MACHINARY 157.00
BUILDINGS AND ROADS 100.00 257.00

5. NEW PARDI SHIT CENTER:

MACHINARY 25.50
BUILDINGS AND ROADS 40.00 65.50

6. NIZAR SHIT CENTER:

MACHINARY 5.50
BUILDINGS AND ROADS 5.00 10.50

7. NASHIK:
MACHINARY 50.00
BUILDINGS AND ROADS 75.00 125.00

1887.00 1887.00
TOTAL

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6.20 FINANCIAL AUDIT:-

PROFIT & LOSS A/C

31 – 03 – 2007 31 – 03 – 2008
EXPENDITURE
(Rs.) (Rs.)
23,45,02,345 To Opening Stock 34,81,28,279
5,16,29,71,071 To Purchase 6,02,88,02,530
12,43,57,331 To Transport Society 12,59,79,623
10,53,01,246 To Research & Extension 13,40,47,192
4,98,13,691 To Processing Expenses 5,41,65,024
24,17,41,124 To Packing Expenses 24,62,50,373
10,83,01,903 To Power & Fuel & Water 11,58,68,268
15,11,58,983 To Wages & Salary Expenses 16,43,79,705
3,88,72,509 To P.F. & ESI 4,97,28,353
5,40,15,263 To Repairs and Maintenance 5,51,61,657
8,40,89,489 To Distribution Expenses 9,18,66,472
40,57,051 To Stationary-Postage Expenses 46,24,571
77,70,586 To Insurance & Legal Fees. 1,34,86,896
15,59,975 To Vehicle Tax and Municipal Tax 16,46,026
59,56,476 To Continuous & Concurrent Audit Fees. 61,52,977
38,35,379 To Miscellaneous Expenses 46,47,881
2,07,17,824 To Interest & Bank Commission 2,15,30,155
5,21,28,608 To Depreciation 6,40,91,651
46,00,000 To Provision for Income Tax 60,00,000
----- To Bad & Doubtful Debts -----
1,63,31,368 To Net Profit 2,07,61,681
6,47,20,82,222 7,55,73,19,314

TRADING & PROFIT AND LOSS A/C FOR THE YEAR ENDED
31ST MARCH 2008
31 – 03 – 2007 INCOME 31 – 03 – 2008
(Rs.) (Rs.)
6,06,85,26,718 To Sales 6,99,84,77,872
5,54,27,225 To Other Income 4,14,16,558
34,81,28,279 To Closing Stock 51,74,24,884
6,47,20,82,222 7,55,73,19,314

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TOTAL NO. OF ASSETS: ~

31-3-2007 Particular 31-3-2008
2,26,67,838 Land and Road 1,85,17,409
17,29,19,003 Factory and Other 13,92,71,506
Building
1,51,53,232 Staff, Quarters 89,54,215
and Hostel
Building
49,48,98,687 Plant and 17,99,93,977
Machinery
1,12,88,464 Vehicles 57,92,909
3,15,74,730 Furniture – 2,14,27,386
Fixtures and
Equipments
92,54,835 Crates/Cans 1,41,863
Plastic
54,84,320 Current Repairing 7,02,845
76,68,41,109 37,48,01,750

TOTAL NO. OF FUNDS: ~

31-3-2007 Particular 31-3-2008

4,62,60,583 Reserve Fund 5,01,53,955
1,74,90,922 General Reserve 1,99,35,257
Fund
1,32,42,260 Capital Subsidiary 1,70,21,860
Fund
40,26,328 Doubtful Debts Fund 40,07,199
19,68,068 Dividend 30,54,439
Equalization Fund
20,21,319 Research and 31,07,690
Development Fund
5,67,466 Charity Fund 11,10,652
4,10,604 Co-operative and 6,82,197
Education Fund
5,13,08,475 O.F. 2nd Fund 5,13,08,475
13,72,96,025 15,03,81,724

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 SUMUL DAIRY

6.21 ANALYSIS OF P & L A/C AND BALANCE SHEET

BY RATION ANALYSIS:-

 CURRENT RATIO:-
(FOR CURRENT YEAR)

Current Assets
Current Ratio =
Current Liabilities

Current Assets = Stock + Debtors + Cash

Current Assets = 54,47,01,276 +75,49,00,370+17,84,93,131
Current Assets = 1,47,80,94,777

Current Liabilities = 1,34,53,70,370

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 SUMUL DAIRY

1,47,80,94,777
Current Ratio =
1,34,53,70,370

Current Ratio = 1.09

ANALYSIS AND COMMENT:-

Current Ratio measures the solvency of the company in the short

term. A Current Ratio of 2 : 1 indicates a high solvency position.
During the year 2007 – 2008 the Current Ratio of SUMUL is 1.1 : 1.

 LIQUID RATIO:-
(FOR CURRENT YEAR)

Liquid Assets
Liquid Ratio =
Liquid Liabilities

Current Asset-Stock
Liquid Ratio =
Current Liabilities – B.O.D.

1,47,80,94,777-54,47,01,276
Liquid Ratio =
1,34,53,70,370

93,33,93,501
Liquid Ratio =
1,34,53,70,370

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 SUMUL DAIRY

Liquid Ratio = 0.69

ANALYSIS AND COMMENT:-

Liquid Ratio is used as a measure of the company’s ability to meet

its current obligations. Liquid Ratio of 1 : 1 indicates highly solvent
position. During the year 2007 – 2008 Liquid Ratio of SUMUL is
0.69 : 1.

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 SUMUL DAIRY

 DEBT EQUITY RATIO:-

(FOR CURRENT YEAR)

Long Term Liability

Debt Equity Ratio =
Owner’s Fund

Owner’s Fund = Share Capital + Reserve & Surplus + P & L A/C

Owner’s Fund = 4,27,29,900 + 15,03,81,724 + 2,07,61,681
Owner’s Fund = 21,38,73,305

4,54,500
Debt Equity Ratio =
21,38,73,305

Debt Equity Ratio = 0.002

ANALYSIS AND COMMENT:-

Debt Equity Ratio indicates the relationship between loan fund and
net worth of the company. A Debt Equity Ratio of 2 : 1 is the norm
accepted by the financial institutions for financing of projects. A
Debt Equity Ratio of 2007-2008 is 0.

 LONG TERM FUND TO FIXED ASSETS:-

(FOR CURRENT YEAR)

Long Term Fund

Long Term Fund to Fixed Asset =
Fixed Asset

Long Term Fund = Long Term Loans + Share Capital + Reserve &
Surplus + Debentures + P & L A/C

Long Term Fund = 2,37,74,301 + 4,27,29,900 + 15,03,81,724 +

4,54,500+ 2,07,61,681

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Long Term Fund = 23,81,02,106

23,81,02,106
Long Term Fund to Fixed Asset =
23,60,61,761

Long Term Fund to Fixed Asset = 1.01

ANALYSIS AND COMMENT:-

This ratio indicates the proportion of long term funds deployed

assets. The higher the ratio indicates the safer funds available in
case of liquidation. It also indicates the proportion of long term
funds that is invested in working capital. During the year of 2007 –
2008 this ration is 1.01: 1.

 DEBTOR’S RATIO:-
(FOR CURRENT YEAR)

NOTE:- Here there is no specification of credit sales so, whole

sales is considered as credit sales.

Debtors + Bills Receivables

Debtor’s Ratio = 365
Total Credit Sales

17,84,93,131
Debtor’s Ratio = 365
6,99,84,77,872

Debtor’s Ratio = 9.31 days

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ANALYSIS AND COMMENT:-

In this ratio the collection period is as possible as low. In the

following calculation the debtor’s collection period for the year
2007– 2008 is 9.

 DEBTOR’S TURNOVER RATIO:-

(FOR CURRENT YEAR)

No. of Days in a Year

Debtor’s Turnover Ratio =
Debtor’s Ratio

365
Debtor’s Turnover Ratio =
9

Debtor’s Turnover Ratio = 40.55 Times

ANALYSIS AND COMMENT:-

During the year 2007 – 2008 the Debtor’s Turnover is 41 times.

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6.22 WORKING CAPITAL:-

Working Capital As on 31-3-2008
PARTICULAR RS. RS.
A) CURRENT ASSET
Cash 4,41,007
Stock:-
Milk Stock 2,42,94,590
Products Stock 41,18,74,033
Raw Material Cattle Feed 8,12,56,261
General Stores 2,10,74,982
Vete. Medical Stock 62,01,410 54,47,01,276
Debtors 17,84,93,131
A) TOTAL CURRENT ASSET 72,36,35,414
B) CURRENT LIABILITY
Creditors 2,93,13,901
B)TOTAL CURRENT LIABILITY 2,93,13,901
NET WORKING CAPITAL (A-B) 69,43,21,513

STORE DEPARTMENT:-

ORGANISATIONAL STRUCTURE:

Store Division

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 
Raw Material Finished Goods

 
Manager Assistant Manager

 
Senior Executive Clerks

 
Junior Executive Peon

ACTIVITIES:

Store Department performs following activities:

1. Storing Raw Materials and Finished Goods.
2. Providing the equipments whenever enquired.
3. Maintain bin cards.
4. Prepare indent letters.
5. Keeping records of material used purchased
and current stock.

PROCEDURE:

When new purchase of Raw Material is done, that material is

sending to the Store Department. In the Store Department Store
Manager received the ordered material and verified the quality and

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quantity of the ordered material. Then he put entry of the material in

his Computer Oracle System and product is stored in the Store
Department. When any process of the finished good is stop due to
scarce of material then process manager run to the Store
Department and applying for issue the material by filling the form
namely Material Issue Docate (MID). Then Store Manager sends
the required quantity to the concern manager and deducted that
quantity form the real quantity.

DISPATCH DEPARTMENT:

ORGANISATION STRUCTURE:

Manager


Senior Executive


Junior Executive


Assistant


Workmen

ACTIVITIES:

Dispatch Manager performs following activities:

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1. Dispatch Manager receiving the orders from

agencies.
2. He prepares the demand of the ordered
Quantity.
3. He prepares the dispatch note form the ordered
quantity.
4. He prepares the Gate pass.
5. Dispatch the goods in the route trucks.
6. Conf

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CONCLUSION

Conclusion:

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For the requirement of completition of 4th semester of B.B.A. We

had undergone two months summer training at “SURAT DISTRICT
CO-OPERATIVE MILK UNION LTD. (SUMUL), Surat.” With the
objective to gain Practical knowledge and experience in the
company and to study the activities of different functional
area.

Sumul Dairy’s daily production is 7,00,000 to 8,00,000 liters. Sumul

Dairy’s main product is Milk, Flavored Milk, Ghee, Paneer, Chees,

Butter, Milk Powder etc. Sumul Dairy invites woman and gives the
knowledge of cooking & arrange competition between them. They
invite schools and colleges to visit and tour their plants. They also
arrange any other competition like painting, baby health & provide
milk to schools and colleges when they arrange sports day. They
study customer needs and wants in well-defined market segment.
They continuously gather and evaluate ideas for new products,
product improvements and services. They feed back customers’
needs and ideas to those in charge of product development. They
prepare periodic “profitability” reports by product, market segment,
geographic areas ( regions sales territories), order sizes, channels,
and individual customer. They tailor the financial package to the
customer’s financial requirement.

BIBLIOGRAPHY:

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BOOKS:

 MARKETING MANAGEMENT
BY “PHILIP KOTLER (TWELFTH EDITION)”
 HUMAN RESOURCE MANAGEMENT
BY “C.B.GUPTA”
 ANNUAL GENERAL REPORT OF SUMUL DAIRY FOR THE
YEAR OF 2007-2008

WEBSITES:

 www.sumuldairy.com
 www.wikipedia.com / Sumul Dairy

ANNEXURE

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BALANCE SHEET AS AT 31ST MARCH, 2008 (ASSETS)

31 – 03 – 2007 31 – 03 –
ASSETS
(Rs.) 2008 (Rs.)
Assets: (As Cost Less
Depre.)
29,83,23,479 Total Assets 37,48,01,750
Investments:
4,77,44,132 Share (At Face Value) 4,97,44,132
28,09,523 Fixed Deposits (Short Term) 28,09,523
Stock:
1,84,06,337 Milk Stock 2,42,94,590
26,14,71,375 Products Stock 41,18,74,033
6,82,50,567 Raw Material Cattle Feed 8,12,56,261
2,54,30,905 General Stores 2,10,74,982
36,23,116 Vete. Medical Stock 62,01,410
37,71,82,300 54,47,01,276 54,47,01,276
Advances & Sundry
Debtors:
20,40,99,829 Trade Debtors 17,84,93,131
54,711 Central Excise 54,711
5,40,26,404 Income Tax Advance Tax 5,40,26,404
46,00,000 Advance Tax – 2007 – 2008 1,00,64,910
68,10,827 Input Vat Tax(Receivable) -----
2,09,85,489 Receivable Deposit 2,23,06,593
29,05,77,260 26,49,45,749 26,49,45,749
Cash & Bank:
3,26,63,158 Nationalised Bank 7,07,81,810
8,65,38,181 Co – Operative Bank 16,98,60,553
5,47,123 Cash 4,41,007
35,00,00,000 Call Deposit 51,38,17,000
46,97,48,462 75,49,00,370 75,49,00,370
1,48,63,85,156 1,99,19,02,8
00

BALANCE SHEET AS AT 31ST MARCH, 2008 (LIABILITIES)

31 – 03 – 2007 Liabilities 31 – 03 –

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(Rs.) 2008 (Rs.)

Authorized Share Capital:
5,00,00,000 5,00,000 Ordinary Share Rs.100 5,00,00,000
Each
Share Capital (Issued & Fully
Paid up)
4,27,25,900 4,29,299 Ordinary Share Rs.100 4,27,29,900
each
Redeemable Debenture:
4,54,500 909 Debenture Rs. 500 Each 4,54,500
Reserve Fund and Other Funds:
13,72,96,025 Total Funds 15,03,81,724
Loan:
93,79,790 N.D.D.B. (Operational Flood) 60,43,934
9,00,000 Gujarat Govt. Revolving Fund -----
1,91,21,926 Cattle Loan (I.D.B.I. Bank) 2,60,77,129
8,46,960 Short Term Loan 40,00,83,562
Current Liabilities & Provisions:
50,45,69,366 Due To Societies 65,69,80,709
30,95,02,901 Saving Societies 29,26,69,691
9,79,932 Fixed Deposits 9,56,131
13,92,56,792 Deposits 10,10,55,307
81,88,392 Other Liabilities 82,07,259
3,06,50,000 Provision For Income Tax 3,66,50,000
12,69,36,360 Outstanding Expenses 14,05,33,731
11,72,13,950 Trade A/C 7,90,03,641
2,20,30,994 Creditors (Miscellaneous) 2,93,13,901
1,25,93,28,687 1,34,53,70,37 1,34,53,70,3
0 70
1,63,31,368 Profit & Loss A/C 2,07,61,681
1,48,63,85,156 1,99,19,02,8
00

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TURNOVER:-

Turnover(in crores)

700
647
600
548
500
425
400 382
353
300

200 183

100 78.11
0.41 18.83
0
1970-71 1980-81 1990-91 1995-96 2002-03 2003-04 2004-05 2005-06 2006-07

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