Summer Training Report at SUMUL - "SURAT DISTRICT CO-OPERATIVE MILK PRODUCER'S UNION LTD"

“SURAT DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD”
SR.No. CONTENTS PAGE NO.
• Profile of the Company & Industry 2.

1.
• Marketing Department 24.

2.
• Human Resource Department 68.

3.
• Production Department 90.

4.
• Finance Department 121.

5.
• Bibliography 144.
6.
• Annexure 145.
7.
VIVEKANAND COLLEGE FOR B.B.A. 1

No. Contents Page no.
Chapter –1 PROFILE OF THE COMPANY & INDUSTRY 2

1.1 Company Overview
1.2 Introduction
1.3 History
1.4 A glimpse picture of industry
1.5 Awards received by sumul
1.6 Milestone of Sumul Dairy
1.7 Objectives of Sumul Dairy
1.8 Sumul’s mission & vision statement
1.9 Work area of sumul
1.10 Unit of Sumul and Their Capacity
1.11 Turnover of sumul
1.12 Organizational Structure of SUMUL
1.13 Number of Departments in SUMUL

1.1 COMPANY OVERVIEW
Name : (SUMUL)
Surat District Co-operative Milk Producers’ Union Ltd.
Address : Surat District Milk Producer’ Union Ltd.
Post Box No.-501,
Sumul Dairy,
Surat- 395008
PH: 2537693, 2538717, 2531666, 2531137
Fax: 0261-2533572
Owner : P.R.Patel
Bankers : The Surat District Co-operative Bank Ltd., Surat
State Bank of India, Surat
Sarvoday Sahakari Bank Ltd., Surat
Surat Nagrik Sahakari Bank Ltd, Surat
DENA Bank, Surat
I.C.I.C.I. Bank, Surat
Bank of India, Surat
H.D.F.C. Bank, Surat

Board of directors:
1.) Shri Manubhai Amthabhai Patel

Chairman
Representative, Nihali Dudh Utpadak S.M. Ltd,
2.) Shri Sudambhai Raghunathbhai Patel

Vice Chairman
Representative, Velda Vibhag Dudh Utpadak S.M. Ltd.
3.) Shri Pravinbhai Namlabhai Gamit

Representative, Vyara Dudh and Shakbhaji Utpadak S. M. Ltd,
4.) Shri Arvindbhai Singabhai Gamit

Representative, Pipalkuwa Dudh Utpadak S.M.Ltd,
5.) Shri Jayeshbhai Natvarbhai Patel

Representative, Delad Vibhag Dudh and Shakbhaji Vechan S.M. Ltd,
6.) Shri Jitendra Dhirajlal Desai

Representative, Uchchal Dudh Utpadak S.M. Ltd,
7.) Smt.Sumatiben Balavantrai Vashi

Representative, Dindoli Mahila Dudh Utpadak S.M.Ltd.
8.) Shri Manojbhai Naranbhai Patel

Representative, Shekhpur Dudh Utpadak S.M. Ltd,
9.) Shri Shivabhai Babubhai Patel

Representative, Naugama Dudh Utpadak S.M. Ltd,
10.) Shri Ramanbhai Ukadiyabhai Gamit

Representative, Zankhala Dudh Utpadak S.M. Ltd,
11.) Shri Bhupendrabhai Ratilal Desai

Representative, Valod Dudh Utpadak S.M. Ltd,
12.) Shri Arvindbhai Bhagvanjibhai Patel

Representative, Rampura Dudh & Shakbhaji U.S.M. Ltd.

13.) Shri Shantilal Kalyanjibhai Patel

Representative, Bagumra Dudh U.S.M.Ltd
14.) Shri Jaysingbhai Dungariyabhai Vasava

Representative, Dhanavad Dudh Utpadak S.M.Ltd.
15.) The District Registrar,

Representative, The Registrar, Co-op. Societies,
Gandhinagar, Gujarat State.
16.) Shri P. Chellapa / Dr. G.P. Vijya

Representative, N.D.D.B., Anand.
17.) Dr. S. T. Desai / Shri S.K. Bhalla

Representative, G.C.M.M.F. Ltd, Anand.
18.) Shri Jayesh Harshadbhai Desai

Managing Director, Ex. Officio Member
Secretary. Sumul dairy, Surat.
Date of registration: 22nd August, 1951
Registered Office: Po. Box-501, Sumul Dairy, Surat-395 008. (Gujarat State)
Auditors: Shree Special Auditor (milk) milk audit office, Surat.
Date of commissioning of Pasteurization Dairy Plan: March, 1968
Dairy Plant capacity at the time of commissioning: 50,000 liters per day
Present capacity of Dairy Plant: 5, 00,000 liters per day
Milk Powder Drying capacity: 12.5 Mts. per day

Milk Chilling Plants along with capacity of Milk Chilling:
Distance
from
No. Chilling Center Establishment Capacity in Employees
LTPD Surat (km)
1 Sumul dairy 1951 5,00,000 591 0
2 Bajipura 1975 3,00,000 113 50
3 Uchchal 1982 1,00,000 49 105
4 Navi Pardi 1996 2,00000 66 25
5 Nizer 63,000 16 175
6 Sumuldan 1970 200 MTPD 96 18
No. of Milk Producers Co-operatives:- 956
Total membership and Nos. of Primary Milk Producers' Cooperatives. :
Category of the society Number of societies Memberships
Tribal 898 171502
Non-tribal 79 32703
Milk Cooperatives Managed by women: 81

No. of Mobile Veterinary Clinics: 22
No. of Veterinarians: 40
No. of A.I. Centers: 130
Cattle feed Mixing Plant capacity: 300 Mts. per day
Mineral Mixture Plant: Production and sale: 45000 packets for Milk Producers

1.2 INTRODUCTION
Sumul or Surat Milk Union Limited, which is now renamed as The Surat District
Co-operative Milk Producers' Union Ltd, is one among the 12 district unions which acts
as manufacturing units of dairy products for (G.C.M.M.F.) Gujarat Co-operative Milk
Marketing Federation Limited.
The Sumul district co-operative milk producer’s union ltd (SUMUL Dairy) is a
co-operative endeavor committed to help marginal farmers and down trodden tribal to
lead to a healthy life and better standard of living through scientific animal husbandry
practices. Today’s Sumul enjoys the pride to serve milk and milk products to popular in
Surat city and surrounding towns of it.
Sumul is holding strong brand equity in surat district and command more than
70% of the liquid milk in surat city, to make the distribute system fast and the delivered
milk in time they have as many as milk transportation routes and 1531 agents
(1386 regular and 145 full time).
The area of operation of sumul is the entire district of sumul. The present milk
procurement of 160,929,736 liters of milk annually makes it the third largest union in the
state after the AMUL and Mahesana dairy. The present market of Surat for liquid milk is
around 4.5 lack liters per day. This has necessary active development of “by product”
market. Products so far introduced are paneer, ghee, flavored milk, sweet, shrikhand,
lassie, butter milk etc...Sumul consist of 13 board of directors one each of 13 talukas of
Surat district and they from themselves elect the chairman. The total numbers of
employees are about 1100 besides the contract workers.

Under Sumul’s activities, Surat district is now firmly established as a milk shed
and is growing from strength to strength.
Hence, the Surat district co-operative milk producer’s union ltd, SUMUL is trade
name and literally meaning sound price, came in to existence on August 22, 1951…
The formal commissioning of the pasteurization plant on March 17, 1968 was a turning
point for sumul.
1.3 History:
In the year 1939 Sardar Vallabhbhai Patel went and meets the farmers of Anand
and told them that for the trade of milk the dairy was necessary. 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 Indian Milkmen. At that time a person named Tribhuvandas
Patel came forward to take the leadership. In order to support the Indian farmers
“AMUL DAIRY” was established in the year 1946. DR. Kurien was appointed at this
dairy. Dr. Kurien along with Tribhuvandas Patel took the leadership. Then after Indian
becomes independent in the year 1947. In the meantime AMUL Dairy got order from the
WHO (World Helth Organisation)to produce milk Powder from buffalo milk. Dr. Kurien &
Mr. Dalaya found the technique of producing milk from buffalo milk. After looking at this
Lal Bahadur Shatri took the visit of Ajampur village and promised them to provide with
more money for the systematic development of the dairy industry. For the proper
development of the dairy industry N.D.D.B. (The National Dairy Development Board) was
established at Anand.
NDDB started……… operation-1) Programmer for all dairies in 1971-72.
In the year 1977 operation flood-2)

Transportation machinery & pressmen of milk at low cost and give importance. In
the year 1990-operation flood-3)
Here the farmers were, made aware about their right & responsibilities high productivity
of milk at low cost & so the co-operative of development programs started.
In the year 1998-99 two million tone of milk was produced in Indian & Indian becomes
the world’s first milk producing country. Which is more then 68 million of American.
So it was called “white revolution”

SUMUL has three chilling center at Bajipura, Navi Pardi and Uchchal for ensuring
safe delivery of raw milk to SUMUL where the milk is processed and pack into various
type of liquid milk and by product to improved the nutritional feed given to the cattle at
village level, the co-operative has establishment a cattle feed factory at chalthan. Sumul
also has oil refined oil at the village of DCS level.
1.4 A GLIMPSE PICTURE OF INDUSTRY:-

1.5 AWARDS RECEIVED BY SUMUL

Award Medal Award Title Year Awarded by
National Energy 2007-08 Ministry of Energy

Conservation Government
Award of India
National Enterprise Honour Indian Society For

Award Industry &
2007-08
Intellectual
Development
National Productivity Award 2007 Ministry of

Agriculture
2007 Federation of
Award for Excellence Gujarat Industries,
Vadodara
Business Leadership 2007 Indian Economic

Develoment Award Development and
Research
Association, Delhi
2007 South Gujarat

"Excellence in Service" Hotel And
Award Restaurant
Association
National Energy 2007 Ministry of Energy

Conservation Award Government of
India

National Dairy Product 2006 Alumna

Judging Contest association and
Certificate college of dairy
science
2006 Federation of
Gram Vikas Award Indian Chamber of
commerce
National Energy 2006 Ministry of Energy

Conversation Award Government of
India
2006 Institute of Director

Golden Peacock Award (International
Institute)
2006 Online Integrated

Manthan-AIF Award Computerized
Systems (OICS)
2005-06 Amazing
Bajaj Fair Business Award Jamanalal
Bajaj Fair Award
2005-06 Federation of
FGI Award Gujarat Industries,
Vadodara
The 18th Annual CIO 100 2005 CIO 100 Award

Award

Commendable efforts and 2004 Federation of

achievements in the field of Gujarat Industries,
'Industrial Relations' Vadodara.
Runners up at CSI-TCS 2004 Computer Society

Award 2003-04 for Best IT of India
Usage
Intelligent Enterprise 2004 Computer

Awards 2004 Associates
Best Organization of the 2003-04 Surat Jilla

District Sahakari Sangh,
Surat
Best Garden of the 2003-04 Surat Municipal

Company of Surat City Corporation, Surat
Enfuse National Award

Energy & Fuel
For Users Association
2003-04
of India,
Energy Efficiency
Chennai
Excellence
Management Excellence 2002-03 Surat

Award - 2002 Management
Association, Surat
IMC Ramakrishna Bajaj 2002-03 Indian Merchant

Award Merit Certificate Chamber, Mumbai
2002

Surat
Manager of the year 2001 Management
2001-02
Association, Surat
Birla Cellulosic Award for 2001-02 Birla Cellulose,

Small Group Activity Kharach
National Productivity Award National

(Dairy Development & Productivity
2001-02
Production Sector) - 2nd Council, New
Delhi
Surat
Quality Excellence Award Management
2000-01
Association, Surat
Jamnalal Bajaj Fair Council for Fair

Business Practice Merit Business Practice,
2000-01
certificate Mumbai
National Productivity Award National

(Dairy Development & Productivity
2000-01
Production Sector) - 2nd Council, New
Delhi
Appreciation Award for 2000 Quality Circle

Total Productivity Forum of India,
maintenance Vadodara
Total Productivity Ahmedabad

maintenance Award Management
1999-00
Association,
Ahmedabad

Appreciation Award for 1999 Quality Circle

Total Productivity Forum of India,
maintenance Vadodara
Certificate of merit from 1998-99 National

National Productivity Productivity
Council Council, New
Delhi
Council for Fair Business 1993 Council for Fair

Practices Business Practice,
Mumbai
Jamnalal Bajaj fair Practice 1992-93 Council for Fair

Award Business Practice,
Mumbai
National Productivity Award 1990-91 National

Productivity
Council, New
Delhi
Sardar Patel Saksharta 1989-90 South Gujarat

Award University, Surat
National Productivity Award 1988-89 National

Productivity
Council, New
Delhi

1.6 Milestone of Sumul Dairy

1.7 OBJECTIVES OF THE SUMUL DAIRY
The Sumul Dairy was established with the following objectives:
 To provide year round milk market for their surplus milk and to earn
reasonable returns.
 To provide maximum overall net returns to the producers and general
satisfaction to the consumers.
 To procure milk and process of milk into good quality milk and milk
products to market it at most economically.
 To increase milk productivity at most economic rate by providing technical
input services to the producers.
 To increase milk production and to reduce the cost of production.
FUTURE OBJECTIVES OF SUMUL: -
 The Sumul Dairy shall provide proper Nutrition and Good Health to its
customers in addition to achieving customer delight.

TECHNIQUES EMPLOYED FOR REALZATION OBJECTIVES: -
The underlying principles of the techniques being employed to realize the objectives are
listed as under:
To increase the milk production potential and productivity in the milch bovine population
of the milk shed area at economic costs by bringing a positive change in:
 Genetic structure of milch animals by implementing accepted Breeding

Plans/Policies (selective breeding in buffaloes and cross-breeding in cows using
Pedigreed Jersey OR H.F. Bulls semen) and by timely and effectively breeding them
with due follow-up to bring down the long dry periods within the desired limits.
 Management of animals for exploiting they’re full potential of productivity at economic

rates.
 Milk procurement practices, speedily, efficiently and economically with least source
of milk.
 Milk handling processing & conversion as per the concept of modern dairying.
 Milk marketing, packing, transport and retailing system to meet the consumers'
demands effectively, economically and efficiently with no undue accumulation of milk
and milk products.
 Management of Union at the district level and societies at the village level most
efficiently and on sound co-operative lines, keeping the overhead expenditure within
the prescribed limits and also maintain the status of Audit Classification "A" on a
continued basis, under the continuous and concurrent audit system.

1.8 SUMUL’S MISSION & VISION STATEMENT:-
"WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT TO

CONSUMER DELIGHT AND RESPECT FOR 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.
Sumul's Vision Statement:
Year 2006-07 2009-20
Turnover RS. 607 Crores RS. 4000 Crores
Milk 6,59,682 kg/day 14,10,000 kg/day

Procurement
Milk Sale 595,595 13,00,000 Liters/Per day
Liters/Per day
Quality ISO 9001 & ISO 22000 & ISO 14001
HACCP
Production Minimum MPC through 100% automation
cost Production
Cost
Distribution Consumers Consumers oriented, Cost
System oriented, Effective Distribution, Cost
Quick and Effective Vertical & Horizontal
effective Distribution

1.9 WORK AREA OF SUMUL
SUMUL dairy is located near railway station road in Surat. It covers

15,000 – acre land. Sumul provides milk collection facilities at the producer’s door in
each village co-operative, where milk is speedily, efficiently and economically transported
twice daily to its dairy plant and chilling centers for processing and marketing.
Since the milk procurement system has been extended far and wide in the entire
district. Sumul have five chilling center at Bajipura, Uchchal, Navi Pardi, Chaved and
Dediapada site at a distance of 50,105,25,110,146 km respectively from Surat city. The
chilled is then transferred to the main plant at Surat railway station road.

1.10 UNIT OF SUMUL & THEIR CAPACITY
Unit Place Capacity Employees Distance

From Surat
SUMUL DAIRY Surat 5 Lakh LTPD 591 0 km
Bajipura Bajipura (B.C.C.) 3 Lakh LTPD 113 50 km

Chilling
Centre
Navi Pardi Navi Pardi 2 Lakh LTPD 66 25 km

Chilling Centre (N.P.C.C.)
Uchchhal Uchchhal 1 Lakh LTPD 49 105 km

Chilling Centre (U.C.C).
Nizer Chilling Nizer 63,000 LTPD 16 175 km

Centre
Chasvad Chasvad 30,000 LTPD 100 km

Chilling Centre
(C.C.C.)
Dediapada Dediapada 30,000 LTPD 135 km
Chilling Centre (D.C.C.)
Sumuldan Chalthan 200 MT PD 96 18 km

Factory (S.D.F.)
These 6 chilling center have provided 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 price. These chilling centers were established with a view to
improve the quality of milk and ease pressure at its headquarters. A large plot of area was
bought while establishing Navi Pardi Chilling Center keeping in mind to shift the dairy
plant from city, if the need arises in future.

1.11 TURN OVER OF SUMUL
YEAR CARORE 2001-02 353
94-95 149 2002-03 382
95-96 184 2003-04 485
96-97 234 2004-05 536
97-98 288 2005-06 548
98-99 290 2006-07 647
99-2000 311 2007-08 700
2000-01 345 2008-09 790
790
800 700
700 647
600 536 548

485
500
382
400 345 353
288 290 311
300 234
184
200 149
100
0
94-95 95-96 96-97 97-98 98-99 99- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-
2000 01 02 03 04 05 06 07 08 09
From the study of the above diagram, we can see that Sumul has made a
continuous progress in their profit making figures. The present profit of the firm is
790 crores which is 90 crores more than the profit of the previous year

1.12 ORGANIZATIONAL STRUCTURE OF SUMUL

1.13 NUMBER OF DEPARTMENTS IN SUMUL DAIRY:-
There are 10 departments at Sumul, they are as follows.
1. HR department
2. Finance department
3. Sales & Marketing department
4. Veternity Department
5. Production & Engineering Department
6. Accounts Department & Audit Section
7. Assembling Department
8. Quality Department
9. Store & Purchase Department
10. Information Technology Department


Chapter – 2 MARKETING DEPARTMENT 24

2.1 Hierarchy Structure of Marketing Department
2.2 Objective of Marketing Department
2.3 Marketing environment (Competition)
2.4 Product mix
2.5 Growth path of Sumul product
2.6 An overview of Sumul’s products & Sales
2.7 Milk & its nutritive value
2.8 Packaging & Labeling
2.9 Pricing policy (Price of Product)
2.10 Organisation’s buying process
2.11 Product Life Cycle (PLC)
2.12 Channel of distribution
2.13 Product Distribution System
2.14 Promotion policy
(A) Promotional Activities (System of approaching to the Customers)

(B) Other Promotional Activities
2.15 Customer satisfaction
2.16 Milk marketing system of sumul
2.17 Product Marketing
2.18 Marketing Approach
2.19 Marketing / Sales Department at a glance
2.20 Customer value management
2.21 Format for the marketing plan for the Year

Introduction
 Market: -
The common usage of market means a place where goods are bought or sold. In
its strict meaning market need not necessarily mean a place of exchange.
 Marketing: -
Marketing is known as important and powerful exchange function. Marketing is

concerned with selling but, now a day the concept has enlarged its meaning. We know
that a product is provided with the aim of sale. The aim producer totally depends on
marketing. Without marketing no unit can run. It covers marketing research, new product
development and so many other important functions.
“Marketing is the process of discovering and translating consumer needs and

wants into product and service specifications, creating demand for these
products and services and then in turn expanding this demand.”
Sumul’s milk marketing in Surat city is monitored, eliminating costly sales-booths

and though regular and assured twice a day supply of milk to 1662 concessionaires
(Agent) 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 standardized / pasteurizes milk is dispatched 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. Contractor’s trucks carry milk from
the Dairy Plant to the places of these concessionaires who caters to the domestic
demand of milk in their respective earmarked areas.

2.1 Hierarchy Structure of Marketing Department
Marketing Manager
(Manish M. Bhatt)
Senior Executive
Officer
Senior Executive
Junior Executive
Senior Assistant
Junior Assistant
Workmen
2.2 Objectives of Department:

 Increase the yearly sale of sumul products by 15 present in Comparison of last
year’s same month.
 To monitor the product and the storage condition including GMP and distributors
parlor retailers levels. The monitor internal and external customer’s satisfaction
level.
 Training and awareness to customer regarding ISO-9000, ISO-14000, HACCP,
GMP and Sumul products about 1000 customer per year.
 Appoint 5 new agents per month to make milk easily available in market.
 To take 25 milk awareness programs at various schools in Surat.

2.3 Marketing environment (Competition):

The marketing environment surrounds and impacts upon the organization. There are
three key perspectives on the marketing environment:
The micro-environment
The macro-environment
The internal environment
 The micro-environment:
This environment influences the organization directly. It includes suppliers that

deal directly or indirectly, consumers and customers, and other local stakeholders.
Micro tends to suggest small, but this can be misleading. In this context, micro describes
the relationship between firms and the driving forces that control this relationship.
It is a more local relationship, and the firm may exercise a degree of influence.
 The macro-environment:
This includes all factors that can influence an organization, but that are out of their direct
control. A company does not generally influence any laws .It is continuously changing,
and the company needs to be flexible to adapt.
The wider environment is also ever changing, and the marketer needs to compensate for
changes in culture, politics, economics and technology.
There may be aggressive competition and rivalry in a market.
 The internal environment.
All factors that are internal to the organization are known as the ‘internal environment’.
They are generally audited by applying the ‘Five Ms’ which are Men, Money, Machinery,
Materials and Markets.
The internal environment is as important for managing change as the external. As

marketers we call the process of managing internal change ‘internal marketing.’

The external environment can be audited in more detail using other approaches such as
SWOT Analysis, Michael Porter’s Five Forces Analysis or PEST Analysis
The macro-environment, there may be aggressive competition and rivalry in a

market. The competitors are also affect the company’s market.
There are lots of National Level dairy, State Level, District Level and Taluka Level
Dairy in India. They are not mainly competitors but they also effects indirectly to the sales
of the Sumul in domestic market. They provide tuff competition in price level competition.
Now a days, Sumul and all other Co-operative milk producers are merge with
AMUL. Because, In all the co-operative milk producers AMUL is oldest and very famous
in the market. So all the co-operative milk producers have decided that they are sale his
milk by only one brand name of AMUL.
Because, in future any of the big competitors comes in dairy market so they can
provide tuff competition by his brand name of AMUL. The raw milk section comprises
local co-operative such as Choryasi, Payal etc.
List of Competitors:
Following some of the dairy all from the district i.e. from North Gujarat & Maharashtra:
1. Unity dairy, Uttarsanda 11. Sardar Dairy, Mehsana

2. Jeevan Shakti, Dhuliya 12. Vimal Dairy, Mehsana
3. Vishalsagar, Dhuliya 13. Royal Dairy, Gandhinagar
4. Gopi Milk Products, Puna 14. Suffal (Paneer)
5. Gautam Milk Products,Kopargoan 15. Satyam Dairy, Gandhinagar
6. Gayatri Milk Dairy 16. Sumathur dairy
7. New Suraj Dairy, vijapur 17. Mahakall Dairy, Sid
8. Sarita Milk Products, Kadi
9. Britannia (Ghee)
10. Neslte (Milk powder, Ghee)

2.4 Product Mix of SUMUL Dairy
Products Mix: “The set of all products and items that a particular seller offers for sales
to buyer.”
Liquid Milk Self Developed

Milk Products Products
Whole Milk Butter Milk Paneer
Pasteurized Ghee Flavors Milk

Standard Milk
White Butter Sweets
Homogenized
Toned Milk
Skimmed Milk Shrikhand

Powder
Skimmed Milk
Sumul Sugar
Butter Milk
Cow Milk
Sumul Tea

2.5 Growth Path of Sumul Products
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 15-8-1999
Flavored milk in 200 ml pouch 15-8-1999
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 & Flavored) 2004
Buttermilk in ESL Packing 2005
Cold Coco 2005

2.6 An Overview of SUMUL Products
Milk Products & their recipes:
Milk is the mail product that is produced by the sumul. Milk acts as a raw material
for the other products of sumul like curd, butter milk, paneer, etc. Sumul processes
variety of milks such as whole milk, toned milk, cow milk, etc because the demands of
milk are different from customer to customer sumul tries to fulfill all the demands, e.g.
people who want ‘Malai’ purchases whole milk , standardize milk is used for tea.
A white or yellowish fluid secreted by the mammary gland of animals. It consists of

emulsion of fat in water with casein and other proteins, milk sugar and inorganic salts.
The solids other that fat include protein, carbohydrates, water-soluble, vitamins and
minerals.
MILK
FAT SNF
VITAMIN PROTEIN
A MINERALS
IRON
D
CALSIUM
E
LECTORS
K

According to the prevention of food adulteration rules 1995,the percentage of milk,

fat and SNF in different classes and designation of milk specified respectively are as
follow: Buffalo milk (5%-6% and 9%), cow milk (3%-4% and 8.5%) recombined milk (3%
and 8.5%) double toned milk (1.5%-9%) and skimmed milk (not more than 0.5% and
8.7%) the fat percentage for the milk of Cow and Buffalo varies from state to state and is
detailed is DFA rules.
Types of Milks:
Name FAT (%) SNF (%) Pouches.
Amul Gold Milk (Whole Milk) 6 9 500 Ml & 6.0 Ltrs
Amul Shakti Milk (Standardize Milk) 4.5 8.5 500 Ml & 250 Ml
Amul Taaza Milk (Toned Milk) 3 8.5 500 Ml & 6.0 Ltrs.
Sumul Cow Milk 3.5 8.8 500 Ml
Skim Milk 0.07 9.3 500 Ml.
Buffalo Milk 5.5 9 _
PSM 4.7 8.8 _

PASTEURISED MILK
Amul Gold Milk Amul Shakti Milk
Amul Taaza Milk Sumul Cow Milk
 Name of Raw Material or Ingredient:
1. Raw Milk
2. Pasteurize Skim Milk
3. Pasteurize Cream
4. LDPE Film
5. Water

PURE GHEE
Ghee Cow Ghee
Recipe:
A Product obtained from milk, cream or butter from various animal species by
means of processes, which result in the total removal of moisture and SNF contents, with
a developed physical structure. Clarified butter fat with a strong flavor is prepared by
heating makkhan.
Name of Raw Material or Ingredient:
1. Pasteurize White Butter/White Butter

2. Sour Butter
3. Hd:Ld:Hd
4. 3 layer Polyethylene Bag
5. Tin (Lacquered) 15kg size
6. 1kg/2kg Size With Corrugated Box
7. 1kg/2kg Size With Corrugated Box

PANEER
Recipe:
Milk to boiling temperature and limejuice, citric acid, or sour whey. Paneer
contain 70% moisture. The whole milk paneer should contain 50%, milk fat on dry matter
basic. In skimmed milk paneer the fat on dry matter basic should not exceed 13%.
1. Pasteurized Standardized Milk

2. Citric Acid
3. Common Salt
4. Moralized Polyester Bag
5. Pasteurized Chilled Water

FLAVORED MILK
Recipe:
Milk standardized to a certain fat percentage to which some flavor such as

chocolate and fruit syrup is added.
Flavored: : American Ice cream Soda
: Kesar Elaichi
: Elaichi
: Pista
: Rose
1. Homogenized Pasteurize Toned Milk

2. Sugar
3. Flavor
4. Color
5. Glass Bottle
6. Crown Cork

BUTTER MILK
Chhash Masala Chhash
By product obtained after the removal of butter or cream from crud by churning or
otherwise also known as ‘Chhash’.
2. Skim Milk Powder
3. Batch Starter
4. Water
White Butter
1. Pasteurize Cream 3. HM-HDPE Sheet
2. Corrugated Box 4. Pasteurized Chilled 5.Water

SWEETS
Shrikhand
A milk based sweets male from concentrated curd with a sweet and sour taste. It
is a semi-soft whole milk product prepared from curd and resembles sweetened quark.
Curd is drained of its whey by hanging it in a cloth from 4 to 6 hours to producing a solid
mass called chakka or maska. The resultant maska is mixed with the required sugar,
condiments and flavor.
1. Pasteurize Whole Milk

3. Sugar
4. Saffron (kesar)
5. Nuts (Kaju, Badam, Pista etc)
6. Poly-Propylene Cups
7. Sealing Foil
8. Corrugated Box

Elaichi Shrikhand
1. Chakka
2. Sugar
3. Elaichi (Cardamom)
Peda:
Name of Raw Material or Ingredient:
1. Pasteurize Milk
2. Sugar
3. Saffron (kesar) Powder
4. Cardamom (Elaichi)
5. Nuts (Kaju, Badam, Pista etc)
6. Paper Box
7. Oxygen Scavenger Poly Bag

Elaichi Peda
1. Milk
2. Cardamom
3. Sugar
Kesar Peda
1. Milk
2. Sugar
3. Kesar

MalaiPuri
1. Milk
2. Sugar
3. cardamom
4. Ghee
5. Pista
Other Sweets
Rasgulla Gulabjabun
Sumul Milk Powder
1. Pasteurized Skimmed Milk

2. LOPE film
3. Kraft Paper Bag

Other Products:
Khawa
A product obtains from Cow, Buffalo or mixed milk by heat desiccation of milk to
65-50% solid in an open pan. It is also called as khawa or mava.
Tea
Sugar

2.7 MILK & its Nutritive Value:-

Milk may be defined as the normal secretion of the mammary glands of females
for the nourishment of their young off-spring. Milk is a white opaque liquid and it is
supposed to have a typical, clean, slightly sweet taste and should have a clean smell.
Milk secreted for a few days after parturition and characterized by high proteins and
immune body content is called colostrums which is ideal and a must for the overall
growth of the young off-spring. From a nutritive stand point, milk is defined as the most
nearly ‘perfect food’. It supplies more of essential nutrients in significant amount than
any other single food.
Breast milk is different in its composition from cow's milk. It has higher lactose
content and lower protein content
TYPE OF MILK % FAT % % % ASH % BIOWATER

PROTEIN LACTOSE
HUMAN 3.8 1.0 7.0 0.2 88.0
COW 4.0 3.4 4.8 0.7 87.0
BUFFALOE 7.4 3.6 5.5 0.8 82.1
CAMEL 4.5 3.6 5.0 0.7 86.2
HORSE 1.9 2.5 6.2 0.5 88.9
GOAT 4.5 2.9 4.1 0.8 88.7
SHEEP 7.3 5.5 6.1 0.4 80.7
WHALE 19.6 9.5 0.0 1.0 69.9
ELEPHANT 19.6 3.1 8.8 0.7 67.8

2.8 Packaging & Labeling:

Packaging is one of the most important factors that management must have to
consider in mind. When the raw materials are converted in the finished goods all the
products are then send to the packing room.
Here different machines are available for different types of packing. The firm is
now going for a new type of packing called “Gable top packing”. The main advantage
of such type of packing is in this packing milk remains fresh for about 10 days. Soon,
Sumul milk will be available in such type of package.
Well designed package can create convenience and promotional value.

Developing an effective package requires a number of decisions as below.
1. Identify the brand,

2. Convey descriptive and persuasive information,
3. Facilitate product transportation and protection,
4. Aid product consumption.
2.9 Pricing Policy:

The marked or announced amount of money asked from a buyer is known as basic
price-value placed on a product. Price is the one element of the marketing mix that
produces revenue. Prices are the easiest marketing mix element to adjust; product
features, channels, and even promotion take more time.
General information regarding to setting of price is it has fixed structure followed by

GCMMF at Sumul farmers are paid on the basis of kilo fat in their milk. They are paid
Rs.318 per KG of fat. Taking this as base the price of the product is being set.
Hence, the price of other product or ingredients used. In case of keser peda, kesar is
used for malaipuri certain dry fruits are used to taken into consideration and accordingly
their prices the price is set. Here the electricity expenses are also added to it. No
additional profit is being charged. Here while setting the price the care is taken that the
price of the product of Sumul is kept low equal to the precluding price of the similar
product in the market.

 Price list of Sumul Products:

Price list of the various products produced by the Sumul with various quantities
are as under.
Commodity Quality Price(Rs.)

Ghee 15 kg 2300
5 liter 720
2 liter 275
1 liter 150
1 liter pouch 145
500 ml pouch 74
200 ml pouch 31
White Butter 15 kg 1695
500 gm 60
Jome 200 ml bottle 8
200 ml pouch 5
Paneer 1 kg 105
200 gr 22
EIaichy Peda 500 gr 59
250 gr 30
Kesar Peda 500 gr 79
250 gr 40
Malai Puri Peda 250 gr 36
Premium Tea 500 gr 62
250 gr 33
100 gr 14
Silbver Tea 500 gr 71
250 gr 39
100 gr 16
EIaichy Shrikhand 500 gr 40
Kesar Shrikhand 500 gr 45
100 gr 10

2.10 Organisation’s buying Process:
Buying Process:
1. Sumul collects the milk from the villages.

2. The collected milk is tested against the set standard. That insures
quality of milk being received from the root level.
3. The milk is tested in lab. No compromises with the quality of milk being
received and pay the price of milk on the basis of fat.
4. The qualified milk is received at raw milk receiving Dock at dairy.
5. The received milk is transported to the dairy for the further processing.

2.11 Product Life Cycle:
The Product Life Cycle concept helps marketers interpret product and market dynamics.
It can be used for planning and control, although it is useful as a forecasting tool.
PLC theory has its share of crities.they claim that claim that life-cycle Patterns are too
variable in shape and duration.
The “Product Life Cycle” is the name given to the stages through which a product passes
over time. The classic Product Life Cycle has four stages:
Introduction
Growth
Maturity
decline
Product Life Cycle model:
1. Introduction:
At the market introduction stage the size of the market, sales volumes and sales
growth are small. A product will also normally be subject to little or no competition.
The primary goal in the introduction stage is to establish a market and build consumer
demand for the product.

2. Growth:
If the public gains awareness of a product and consumers come to understand the
benefits of the product and accept it then a company can expect a period of rapid
sales growth, enter the “Growth Stage”.
The growth space is characterized by a rapid increase in sales volume. So, we can
say that Sumul is now in Growth Stage. In the Growth Stage, a company will try to
build brand loyalty and increase market share.
3. Maturity
When a product reaches maturity, sales growth slows and sales volume eventually
peaks and stabilises. This is the stage during which the market as a whole makes the
most profit. A company’s primary objective at this point is to defend market share
while maximising profit.
4. Decline:
A product enters into decline when sales and profits start to fall. The market for that
product shrinks which reduces the amount of profit available to the firms in the
industry. A decline might occur because the market has become saturated, the
product has become obsolete, or customer tastes have changed.
The product life cycle concept can be used to analyze a product category,
a product from, a product or a brand and so on. Our company is at the growth
stage of the product life cycle and our company also create the new idea and
launching new product time to time and increasing sales every time.

2.12 Channel of Distribution:

1. Direct Distribution Channel:
2. Indirect Distribution Channel:
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.
DISTRIBUTION CHANNEL OF LIQUID MILK
DAIRY AGENT CUSTOMER
 So, its called one level (1 level) Distribution Channel
DISTRIBUTION CHANNEL OF DAIRY PRODUCTS
DAIRY DISTRIBUTOR RETAILER CUSTOMER
 So, its called two level (2 level) Distribution Channel

2.13 PRODUCT DISTRIBUTION SYSTEM:-
The management of dispatching milk from production (processing in case of milk)

to dispatching milk & milk products to the distributors is done in the following three main
stages, which are as follows.
1. Production to finished product system,
2. Marketing to finished product system,
3. Final product system to final dispatch.
1. PRODUCTION TO FINISHED PRODUCT SYSTEM
Steps:-
 Goods are produced in production department as per the demand estimated by

the marketing department. (Demands are estimated yearly, monthly and weekly.
 Final products are sent to laboratory for testing. If sample product is not
satisfactory it is sent again back to the production.
 After testing the final product are packed in the cartoons.

 These cartoons are sent to the finished product system.

 FPS checks the receipt of the goods sent by the production and collects the
goods.
 Finally the No. of cartoons is counted and this information is entered into the
oracle system.
2. MARKETING TO FINISHED PRODUCT SYSTEM
Steps:-
 Marketing department takes the order from distributor on phone
Marketing department can access the quantity of the goods which are
available with the finished product system.
According to the order marketing department prepare the party wise bill.
These bills are sent to finished product system.
FPS sees the bill and loads the truck accordingly.
After goods are dispatched the closing stock is counted and the information is
entered into the register by the FPS.
3. FINAL PRODUCT SYSTEM TO FINAL DISPATCH
Steps:-
 FPS loads the truck according to the demand.
 Driver of the respective vehicle signs the bill of the goods that is loaded in his truck
at the gate of the dairy.
 Again all the cartoons are counted by the employee of dairy at the gate.
Gate keeper takes the gate pass which is attached with the bill after checking the
goods.
 And finally the truck are dispatched & trucks go to the distributor.

In short the Product Distribution System is managed in this Flow-
PRODUCTION
FINISHED PRODUCT SYSTEM
ENTRY IN ORACLE SYSTEM (AFTER CHECKING STOCK)
ALL THE STOCKS CAN BE ACCESSED BY ALL THE DEPARTMENTS
BILLS ARE GIVEN IN THE FPS
ACCORDINGLY THE GOODS ARE LOADED IN THE TRUCK
TRUCKS ARE THAN DESPATCHED
FINALLY SENT TO DISTRIBUTION
Distributors:
SR # CODE # DISTRIBUTORS LOCATION TELEPHONE #

1 4001 Chandrakantbhai Gheewala Varachha 9824187724
2 4005 Kamleshbhai Patel Ukai 02624-233079
3 4011 Gopi Agency Sachin 2890493 / 2890023
4 4012 Bhagvati Maisuriya Kim 02621-230979
5 4014 Nitaben Shah Kadod 246998

6 4015 Patel Bhailal Rander 2484350
7 4016 Gurukrupa Traders Olpad 02621-221225
8 4020 Aashirwad Agency Bardoli 02622-226475
9 4021 Patel Ambalal Navsari 2482085
10 4022 Kikiben Patel Dumas ---
11 4024 Hashmukhbhai Mayavanshi Bedkuvadur 02626-231251
12 4028 Ambika Bakery Udhana 2678518
13 4031 Puja Agency Salabatpura 2616715
14 4047 Jagdamba Disributors Chalthan 02622-271446
15 4125 Sunandaben Patil Navapur ---
16 4126 Super Sales Corporation --- ---
17 4114 Yogeshbhai Desai Katargam 9825390086
18 4128 Ishwarbhai Rambhai Bari --- ---
Parlors:

SR # CODE # PARLOURS LOCATION TELEPHONE #

1 4000 Sumul Staff Society Sumul Main gate Ext. # 252 / 274
2 4002 Khedut Sahkari Jin 2 Vyara 02626-220045
3 4003 KRIBHCO Staff Society KRIBHCO 8422575
4 4004 Bardoli Sugar Staff Society Bardoli 02622-220418
5 4006 Swaminarayan Kariyana Stores Kathor 02621-256364
6 4008 Sagar Dairy & Provision Stores Vyara 02626-222401
7 4009 Kamrej Kela Mandli Kamrej 02621-252067
8 4010 Asha Dairy Katargam 2414379
9 4017 Bune Catering Station ---
10 4019 Rajendra C. Patel Ambikaniketan 2258839
11 4023 Madhi Sugar Staff Society Madhi 242141 / 241048
12 4029 Madhuben Vyas Anand Mahel 2747650
13 4030 Vasantbhai Patel Road Varachha 2556430
14 4121 Shobhaben Thakkar Gopipurat ---
15 4033 AMUL Pizza Parlor Athwagate 3464917
16 4037 Jivanlal Barwalia A. K. Road 9824136802
17 4038 Bhalala Madhubhai Katargam 2530815
18 4039 Prakashbhai Patel Kapodra 2566162
19 4041 Janak Dalal Navapur ---
20 4043 Sanjay Gaurishankar Shah Station Road ---
21 4044 Bharatbhai Patel Amroli 2495867
22 4045 Dhananjay Sukhadiya Bhagal 2311517
23 4046 Palsana Grocery Palsana 02622-263218
24 4048 Jitesh Shah Kathor 9824189931
25 4124 Shanti Provision and Dry Fruits City Light Area ---

28 4050 Sayan Sugar Staff Society Sayan
29 4051 Khadi Gram Olpad 221002
30 4052 Ilayasbawa Kosamba 02629-232314
31 4053 Sarvajanik Kanya Vidhyalaya Bardoli ---
32 4054 Kadwa Aptiva Samaj Navi Pardi ---
33 4055 Dinesh Rathod Olpad 02674-286370
34 4059 Bavchandbhai Patel Ayurvedic College 7548372
35 4061 Sevni Sahkari Mill Kamrej 02621-264509
37 4099 Vimal Patel Kadodara
38 4106 Amit Ghadiya Adajan 2680698
39 4108 Upeshkumar Patel Patelnagar 2697086
40 4110 Aahir Vamankumar Kim ---
 Area covers:
The distributors NAD parlors cover whole Surat District including Surat City,
Bardoli, Vyara, Kodod, Ukai, Chatthan, Kamrej, Kim, Kosamba, Olpad, Kathor, and
Sayan. This whole district is coverd by almost 3000 retail outlets; they constantly remain
in contact with the customers.
 Market Share:
In dairy industry Sumul Dairy is wide term. We are the market leaders in almost
each dairy product in Surat District.
Products Share
Ghee 70%
Paneer 50%
Shrikhand 15%

2.14 Promotion Policy

Promotion activity mainly consists of advertisement. Sumul is a co-operative
sector and so the advertisement budget is quite less. However Sumul dairy spend
nearly 20 to 25 lakh on the advertisement. The contract of advertisement is with the
Venus ads. Here advertising is done through hoardings, banners, wall painting,
newspapers, and stickers etc.
Sumul as part of promotion activity helds “Sumul healthy baby contest” on

regular intervals. The participation is increasing every time the contest is being held.
Here, every one is given information about product of Sumul and their views
regarding the Sumul product. What change they want? Which other product they want?
Are also being asked shop painting is also promotion activity carried on by them.
(A) Promotional Activities: (System of Approaching the Customers):

 Sumul is doing the following activities to Approach to its customers.
Advertisement:
 By giving the advertising and to a local TV channel by hosting famous

anchor advertising through during festival Seasons.
Here, advertising is also done through hoardings, banners, wall painting,

newspapers, and stickers etc.
Paneer Show:
 In this show different items made from paneer are sold at a discount rate.

Healthy Baby Contest:
 In order to popularize milk and milk products, Sumul organize every

year Sumul Healthy Baby Competition. Healthy Baby Contest is
unique contest of its kind in Surat. It is conducted each year since
1992 successfully.
Education Programs:
 The firm also gives information to the cool children about cow milk
by visiting different type of schools in Surat city.
House Visits:
 The companies also visit different houses and collect information

about different products of the company and also take suggestion
from the customer.
(B) Other Promotional Marketing Activities:

 Changes have been done in paking and slogans of few products.
 Door to door advertising is done for new product.
 Facility of taking loan from bank for vehicle and refrigerator are given to agents.
 A mobile van with facility to test milk show films to customers and address public
regarding the hygienic aspects of Sumul milk.
 Sumul Healthy Baby Competition.
 Sumul Painting Competition 2002-02 organized by Sumul & Saint Xavier’s School.
 School students visiting Sumul as a part of their education to know about

production activity.

 “Sumul Dairy Cooking Competition” organized by Sumul at Hotel Holiday Inn,

Surat.
 “Rasoi Show” organized by Sumul at Hotel Holiday Inn, Surat.
 Sumul also organized ”Healthy Baby Contest” since 1992
”Healthy Baby Contest”

2.15 Customers 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:
 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.
2.16 MILK Marketing System of SUMUL:
Sumul’s milk marketing in Surat city is monitored by eliminating costly sales-

booths and though regular and assured distribution of milk, twice a day supply of milk to
1662 concessionaires (Agent) 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 standardized / pasteurized milk is
dispatched 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. Contractor’s trucks
carry milk from the Dairy Plant to the places of these concessionaires who caters 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 the security of milk, material and money.
 Operational convenience to deliver milk and off tack of crates etc. from
these permanent places at any time, including odd hours.
 Utilization of Agent’s family, labour and residential place and hence very
economic operation for them and the Dairy.
 Familiarity of the Agents with locality and vice-versa and hence smooth
dealing under mutual confidence.
The institutional buyers include hotels, restaurants, canteens, hotels, charitable

institutions, milk vendor’s etc. who enter into contracts for purchase of milk for the entire
year and receive milk as per the contract, twice-a-day, in sealed cans, through the
contractor’s milk routs 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.
The Agents sale milk delivered to these Agents during the day and they develop
the sale-proceeds daily at the nearest Cash Collection Centers of the Dairy.
The Dairy runs these Centers 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 nonpayment or
short-payment of cash, the Dairy takes corrective action almost instantaneously.
Sumul also encourage a Small Savings Scheme for the Agents by deducting a
particular amount from the commission every month and transferring the same into their
deposit amount, thereby allowing the deposit to build-up every month, Currently the
commission of 40 paisa per liter is paid to the Agent.

2.17 PRODUCT MARKETING:-
 Party Orders: Sumul parlors and Sumul dairy gives a proper attention to
bulk and party orders. For that dairy or parlor even gives a home delivery facility if
it is convenient.
 Online Shopping Facility: Advertising and Free Offer Information.
Information technology is growing very fast and Sumul always tries to lead
in technology. Customer should get the 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
Website "www.sumuldairy.com" for online product information & takes online orders.
2.18 Marketing Approach:-
SURAT CITY
STRATIFICATION OF SURAT CITY IN ZONE
IDENTIFICATION OF ZONES HAVING SHARE LESS THAN 70%
STRATIFICATION OF ZONES INTO SUBZONES
IDENTIFICATION OF SUBZONES HAVING SHARE LESS THAN 70%

 SALIENT FEATURES FROM MIS:-
• Zone Having 200 Households per agent has share more than 70 %
• Zone Having 1500 - 1800 Population per agent has share more than 70 %
• Zones where customers are ignorant about the quality of milk are having fewer
shares (slum areas).
 IMPLEMENTATION PLAN:-
• Identify Sub zones having share less than 70 %

• Number of agencies are increased considering
(A) 200 Household per agent,
(B) 1500 Population per agent,
• Study is done in Sub zones having share less than 70 %

• For competitors’ Strengths/ Weaknesses, their sales volume & type of milk
preferred by the consumers.
• The Consumer Awareness
(A) Live testing of milk in the market to show the difference between our milk and
competitors’
(B) School programmers.
2.19 Marketing / Sales Department at a glance:
 Population of Surat City: 33, 00,000

 Market Size: 8, 25,000 Liters/ day.
(Population*250ml per capital)
 Average sale (2006-07) is 6, 70,000 Liters milk per day

 Growth: 14.82.0%
 Market share: 77%
 Competitors in packed milk:18-20 having sale 25000-30000 liters in total per day.
 Raw milk: vendors and local organized dairy.

Milk Procurement:(2008-09)
Milk Sales Volume (Liters)-(2008-09

2.20 CUSTOMER VALUE MANGEMENT
:MAKING QUALITY A STRATEGIC WEAPON :

The four stages
•Satisfy all stakeholder
CUSTOMER VALUE MANAGEMENT •Use customer value
TOTAL QUALITY MANAGEMENT analysis to :
-- Track competitiveness.
--Decide what business to
be in.
--Make capital investments
•Get closer to the •Align entire organisation
market (customer & (people & processes) with
competitors customer) the evolving needs of the
than your comp. Do market.
•Use customer value
analysis to view
performance verses
competitors.
•Understand clearly
• Confirm to
why orders are
requirement •Get closer
won or lost
•Do it right to customer
•Be market driven
the 1st time •Understand needs
•Reduce scrap and expectations
& Re-work •Be customer driven
Stage-1 Stage-2 Stage-3 Stage-4
Targeted Market Critical role of quality

Internal Customers and performance v/s & Volume in overall
Focus operation Competitors strategic frame work

2.21 FORMAT FOR MARKETING PLAN FOR THE YEAR:-
ITEM CURRENT DESIRABLE STRATEGIES IMPLEMENTA WHO WHEN IT

STATUS STATUS TION PLAN WILL WILL BE
DO IT DONE
Milk sale
Distribution
Distribution
cost
Grievance
handling
Market
returns
TQM activity
Customer
relations


Chapter – 3 HR DEPARTMENT 68
3.1 About the Personnel Management
3.2 Hierarchy of HR department
3.3 Board of Directors
3.4 HR Objective
3.5 Role of HR in sumul
3.6 Human Resource activities
3.7 Recruitment & Selection process
3.8 Human Resource Planning
3.9 Training & Development system
3.10 Performance appraisal system
3.11 Promotion & Transfer policy
3.12 Wage & Salary structure
3.13 Employees welfare
3.14 Motivation Programmers for the Agents
3.15 Personnel Information System & Pay-roll Accounting System

3.1 About the Personnel Management:-
Personnel department is the key department of the any business.

Personnel department is the main part behind the company’s success or failure.
“Personnel management is that part of management, which concerned with people at
work and with their relationship within an enterprise.”
According to Flippo, personnel management or Human resource management

is “the planning, organizing, directing, and controlling of the procurement, development,
compensation, integration, maintenance and reproduction of Human resource to the end
that individual, organizational, and societal objectives are accomplished.”
In any organization, human resource management is very useful to improve and

maintain relation between management and employee, trade union and management.
It also helpful to organization to retain efficient workforce. It watches each and every
movement of employees in the organization. Its aim is, to bring and develop into an
effective organization.
Therefore, every organization needs separate personnel department & likewise

“SURAT DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD” (SUMUL)
also has separate personnel department, which handled all the function of the personnel.
Personnel management is a continuous process. It cannot stop. Personnel

management is a never-ending process. It helps in achieving objectives of company.
This is done by proper perform of personnel function like recruitment, selection, training
& development, labor activity, motivation, welfare etc. it also helps to keep a smooth
relationship between employers & employees.
Sumul believes that the most significant resource is its Human Resource and
Sumul’s Success in the long run depends very much on the quality of its human
resources. Human resource comprise the aggregate of employee attributes including
knowledge, skill, experience and health, which are presently available to the organization
for the achievement of its goal, objectives and service to the society.

3.2 Hierarchy of Organization:
Board of Director
Managing Director
(Mr. Jayesh H.Desai)
General Manager
Assistant General Manager
Manager
Dy. Manager/Assistant
Manager
Executive Officer/
Sr. Exe. Officer
Sr. / Jr. Assistant
Skilled /
Unskilled Work Man

3.3 BOARD OF DIRECTORS:
No Name Details Phone No.
1. Shri Manubhai Chairman (02625) 258158

Amthabhai Representative, Nihali Dudh Utpadak Mo.98241-10316
Patel S.M. Ltd, 99799 11122
At.: Nihali, Po.: Dholikui, Tal.:
Mahuva.394250
2. Shri Sudambhai Vice Chairman ( 02628 )

Raghunathbhai Representative, Velda Vibhag Dudh 244238 / 244228
Patel Utpadak S.M. Ltd.
At. Velda Tal. Nizar 394370
3. Shri Pravinbhai Representative, Vyara Dudh and (02626) 220558

Namlabhai Shakbhaji Utpadak S. M. Ltd, Mo. 99794 84300
Gamit At. & Po.: Vyara, Tal.: Vyara.394 650
(From 01-07-2006)
4. Shri Arvindbhai Representative, Pipalkuwa Dudh (02624) 251088

Singabhai Utpadak S.M.Ltd,Pipalkuwa, Mo. 94268 69388
Gamit Po.:Pipalkuwa, Tal.: Songadh.394660
5. Shri Jayeshbhai Representative, Delad Vibhag Dudh And (02621) 242405

Natvarbhai Shakbhaji Vechan S.M. Ltd, Mo. 94268 87393
Patel At. Delad Po.: Sayan, Tal.:
Olpad.394540
6. Shri Jitendra Representative, Uchchal Dudh Utpadak (02628)

Dhirajlal Desai S.M. Ltd, 231106/231123
At & Po.: Uchchal ,Tal.: Mo. 94261 88775
Uchchhal.394375

7. Smt.Sumatiben RepresentativeDindoli Mahila Dudh (02621) 242526

Balavantrai Utpadak S.M.Ltd. Mo. 94261 48670
Vashi At & Po.:Dindoli,Tal.:Choriyasi.(From 01-
07-2006)
8. Shri Manojbhai Representative, Shekhpur Dudh (0261) 2272083

Naranbhai Patel Utpadak S.M. Ltd,
At Shekhpur Po.: Sayan,
Tal.:Kamrej.394180
9. Shri Shivabhai Representative, Naugama Dudh (02623) 233288

Babubhai Patel Utpadak S.M. Ltd, Mo. 94271 66144
At Naugama(Nani) Po.: Simodra,Tal.:
Mangrol.394410
10. Shri Ramanbhai Representative, Zankhala Dudh Utpadak (02623) 221396

Ukadiyabhai S.M. Ltd, Mo. 98795 73064
Gamit At & Po. Zankhala Tal.: Mandvi.394160
11. Shri Representative, Valod Dudh Utpadak (02625) 220151

Bhupendrabhai S.M. Ltd,
Ratilal Desai At & Po. Tal.: Valod.394640
12. Shri Arvindbhai Representative, Rampura Dudh & (02622)

Bhagvanjibhai Shakbhaji U.S.M. Ltd. 263308/263309
Patel At.Rampura. Po.Varad. Mo. 98980 63308
Tal:Bardoli.394602
13. Shri Shantilal Representative, Bagumra Dudh (02622) 220431

Kalyanjibhai U.S.M.Ltd At & Po.: Bagumra Mo. 98252 55975
Patel ,Ta.:Palsana.
14. Shri Representative, Dhanavad Dudh (02629) 253542

Jaysingbhai Utpadak S.M.Ltd. Mo. 94271 77812
Dungariyabhai
At & Po.Dhanavad, Tal. Umarpada.
Vasava

15. The District Representative, The Registrar, Co-op. (0261)-2472051 (O)

Registrar Societies,
Gujarat State, Gandhinagar.
16. Shri P. Chellapa Representative, N.D.D.B., Anand. ------

/ G.P.Vijya
17. Dr. S. T. Desai Representative, GCMMF Ltd, Anand. ------
18. Shri S.K. Bhalla Representative, GCMMF Ltd, Anand. ------
19. Shri Jayesh Managing Director, Ex. Officio Member Mo. 99799 22122
Harshadbhai Secretary. Sumul dairy, Surat. 98241 36863
Desai
3.4 HR Objectives:
 To develop and sustain core values.
 To develop business leaders for tomorrow.
 To provide job contentment through empowerment, accountability and
responsibility.
 To build and upgrade competencies through virtual learning, opportunities
for growth and providing challenge in the job.
 To faster a climate of creativity, innovation and enthusiasm.
 To enhance the quality of life of employees and their family.
3.5 Role of HR in SUMUL:

 Alignment of HR vision with Corporate Vision.
 Shift from support group to strategic in business operations
 HR as a change agent.
 Enhance productivity and performance by developing employee competency and
potential.
 Developing professional attitude and approach
 Developing ‘Global Managers’ for tomorrow to ensure the role of global players.

3.6 Human Resources Activities:

The main activities of this department are recruitment, selection, training, and
welfare actives.
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 institute from time to time for up-gradation & development of its Human
Resource. Some of the efforts of Sumul to achieve this are:
Employee Personality Development 1995

(Attitude, skill & Knowledge)
Self Development 1995

(Self management Leadership, Meditation)
Total Quality Management, QC, SGA, Kaizen, SQC 1996
Total Productive Maintenance 1999
Meditation Hall 2000
3.7 Recruitment & Selection Process

Recruitment:
In simple term, recruitment is understood as the process of searching for and obtaining
application for jobs, from among whom the right people can be selected.
“Recruitment is a process of searching for prospective employees and

stimulating and encouraging them to apply for jobs in an organization.”
In Sumul Recruitment is basically done by HRD department in consultation with

the concerned department for which new employee is required. It is not a regular event
as recruitment is done only when there is any vacancy or some requirement comes up in
the organization. All the new employees must meet the minimum experience and
qualification criteria as set by personnel department.

Recruitment Process:
 HR Department receives requisitions.

 Locating and developing the sources of required number and type of
employees.
 Identifying the prospective employee.
 Communicating the information.
Sources of Recruitment:
Generally, two types of SOURCES are used in the Organization:
1. Internal Sources:
 It is generally done through Relative of present employees, promotion and
transfer.
2. External Sources:
 Advertisement
This is the common source of recruitment. All types of organizations are using it for
recruitment. Sumul use most of time this source for recruitment.It gives advertisement
in local and state level news paper.
 Employment exchange
Employment exchanges have been setup all over the country in difference to in
provisions of the Employment Exchanges Act, 1959. These agencies are providing a
wide range of services, counseling assistance in getting in getting jobs, information
about the labour market, labour and wage rates.
 Campus interview.
Colleges, universities and institutes are fertile ground for recruiters. Sumul also recruit
it employee from colleges and universities campuses.
 Direct Interview:
By giving advertisements in the newspapers.

Selection Process
The Selection Process is concerned with determining whether an applicant meets
with all the qualification need to perform a particular job. It means right person a right
place. It is very important because of a wrong person is selected it will cost to the
company. Need of selection would be arise when vacancies are made in
organization. Procedure for selection is differing from organization to organization and
from job to job.
 For Executives:
 Written Test
- Aptitude test
- Subject test
 Group Discussion
 Interview
 Final selection
 For Non-Executives:
 Written Test
 Final interview
 Final selection
3.8 HUMAN RESOURCE PLANNING
Meaning of HRP:-
Human resource planning as been defining as………,
“The process by which management determines how an organization should move
from its current manpower position to its desirable manpower position. Though it
management strive to have the right number and the right kind of people at the right
place, at the right time, doings things which result in both the organization and the
individual receiving, maximum long range profit.”

According to Beach, “ human Resources planning is a process of determining and

assuming that the organization will have an adequate number of qualified persons,
available at the proper times, performing jobs which meet the needs of the enterprise
and which provide satisfaction for the individuals involved .”
Human Resource Planning Process:
In Sumul, Human Resource Planning process is done by following steps
1. Organizations objectives and policies:
Human resource plan needs to be based on organizations objectives that means

objective of human resource must be derived from organizations objectives. Specific
requirement in terms of number and characteristics of employee should be derived from
these objectives.
Sumul take care of organization objectives and policies while recruit employees and also
take care of such questions like whether organization should fill vacancies by internal
sources or external sources of recruitment.
2. Human resource demand forecast:
Human resource forecasting is the process of estimating the future quality and quantity
of people require. The basis of forecast is annual budget and long term plans of Sumul,
which are translated into activity level for each function and department. Base on this
information the number of hours to be worked by each skilled man power in a given
period of time should be calculated. Once the hours are available the next logical step is
to find out the quantity and quality of personnel.
The human resource forecasting is done by various techniques like- Managerial

judgment, Trend analysis, Delphi method, Flow models and Work study method and
many others.

3. Human resource supply forecast:
Personnel demand analysis provides the manager with number and quality of employee
that to be require. Next logical step for manager is to find out the number of people likely
to be available form within and outside of an organization. The supply forecast covers the
existing human resources, internal source of supply and external source of supply.
Sumul use the analysis of present employee human resource audit summaries, each
employee skill and ability for understanding capability available in organizations work
force. It also forecast the internal source or supply. Managers are calculating the
available supply of manpower within the organization.
4. Human resource programming:
Once, an organizations personnel demand and supply are estimated or forecasted by the
managers, then they take care of the balancing between them. The balancing is needed
in order to fill the vacancies by the right employees at right time. So human resource
programming has greater important in planning process.
5. Human resource plan implementation:
Implementation requires converting human resource plan into action, such human
resource plan includes Recruitment, Selection, Placement, Training, Development,
Re-training and Re-development, Sumul use such various plans.
6. Control and Evaluation program:
Control and Evaluation program represent the monetary of H.R planning process the
H.R. plan should include budget target and standards. We should also clarify
responsibility for implementation and control. It should establish reporting procedure to
monitor the execution of H.R. plan again achieve result.

3.9 Training and Development System:
Training:
- “Bridge the gap between job requirements and present competence of an employee”
- “Training is the process of increasing the knowledge and skills for doing a particular
job”
Training is a learning process which seeks a relatively permanent change in

behavior that occurs as a result of experience. Training refers only to instruction in
technical and organized operations. Training courses are typically designed for a short
term, stated set purpose.
In Sumul Dairy, training is given with the objective of increase in productivity

of employees, increase quality of work, enhance and update knowledge and skills of
employees and many others but there is no without training program. Sumul provides
training as on the job training and give training to new employee. Training is given to
the workers which are basically at period of one month.
On the job training is training in which Sumul and its members are help and
provide guidance, if there is any difficulty in any work. Training is based on learn and
teach and hence, employees will grow with experience.
Need for Training:
1. Job Requirements.
2. Technological Changes.
3. Organizational Viability.
4. Internal Mobility

 Training is given in 3 Categories as:

1. Management Training.
2. Office Training
3. Senior Executive Training
The management training is given for 6 months. Officers and senior

Executives attend the management development programmed organized by the
institute. Training is not uncommon in Sumul. It has an elaborate training program to
make employees acquire new skills and knowledge. Both internal and external
training is carried out as and when required.
Development:
- Development involves preparing the individual for a future job and growth of
the individual.
- Development is the process of transition of an employee from a lower level of

ability, skills and knowledge to that of higher level. Sumuldairy also run
program of development periodically. Sumul tries to develop new skills,
techniques and personality of their employees.
So, the sumul also organized various development programs for Officers
and Executives.

 Following are the data of internal and external training programmed conducted by
Sumul in the last five years.
 Number of Training Programs:
Programs 2001-02 2000-01 1999-00 1998-99 1997-98
No. of in-house 144 53 20 - -

Programs
No. of Participants 1762 628 415 - -
No. of External 9 9 14 16 22
Programs
No. of Participants 55 31 43 55 57
Total Programs 153 62 34 16 22
Total Participants 1817 859 458 55 57
In addition to this, Sumul also has the policy to sponsor employees for higher
education to various institutes. The following table shows the number of employees
sponsored by Sumul.
 No. of Employees sponsored for higher studies:
Particulars 2001-02 2000-01 1999-00 1998-99 19997-98
Employees 2 2 1 - -
Sponsored for
Advance Study continue

3.10 Performance appraisal System:
“Performance appraisal is the systematic, periodic and an impartial rating of an

employee’s excellence in matters of pertaining to his present job and his potential for a
better job”
After recruitment organization gives specific project to the employee to train

him. After completion of this project, it is checked by the authorized person of the
department if the employee do not perform well then they are terminated from the
organization. Performance Appraisal System is still in rudimentary stage in Sumul.
Through Performance the top management does appraisal or reporting head, it is short
on comprehensiveness and touches only few aspects. However the silver lining is that in
order to make system transparent and open, evaluation is cross-checked with the
employee by HRD people and in case of some differences try to solve out the problem.
3.11 Promotions and Transfer Policy
Promotion Policy:
The Management trainees are given 6 month training and later on if they perform
well are promoted as provisionary and after one year they are confirmed.
Moreover, Promotion is given on the basis of education obtain by different
personnel.
Transfer policy:
There is not any policy for transfer, but managing director of the organization
generally takes the decisions of transfer.

3.12 Wage & Salary Structure:

“Wages represent hourly rates of pay & Salary means monthly rates of pay”
Wage and Salary are subject to annual profit. They differ from employee and
depend upon the job nature, seniority & merit.
 Sumul provides this type of allowances :
 Dearness Allowance (DA)

 Additional Dearness Allowance (ADA)
 House rent Allowance (HRA)
Some fixed amount of house rent allowance is provided for those who live in
rental house. Sumul has a fixed increment system for each level of authority in the
organization. Only one increment is given a year. However for calculating increment for
an employee, the period of time the day of his joining rather month of January and July
are considered as base month for the same.
For instance, an employee joining the organization in second week of January

in 1999 would be having his next increment due in 2000 July not in January.
There is also a compulsory increment every 14 and 23 year in which, the

employee becomes eligible for immediate next salary scale. Plus two increments without
any change in his/her designation. However, during last agreement, upgraded
employees have also been given designation as per new salary scale. Recently, Sumul
has revised its pay structure to attract more young talents.
 Sumul provides this type of allowances :
Leave Travel Allowance (LTA)
Every year allowance is given to employees for traveling any place. This amount
is also fixed. Super Annuitant Scheme (SAS) it provided after every 3 years
(BASIC+DA+ADA).

Washing Allowances (WA)
Rs. 20/- is provided every month as washing allowances to worker category.
City & Travel Allowance (CTA)
Those who live in city are given these allowances more than those are in the village.
Shift Allowance (SA)
Shift allowance is provided in following way:
PRESENCE IN ONE-MONTH ALLOWANCE (RS.)
25 & More 65
24 60
23 45
22 30
21 15
20 & Below 00
Visiting Allowance (VA)
This allowance is given to the entire field officers and veterinary officer.
Bicycle Allowance (BA)
It is give to all permanent employee of worker category.
Scooter Allowance (SA)
This allowance is given to all the officers and marketing executives.
Driving Allowance (DA)
It is giving to the drivers of tempos and trucks of SUMUL.
Other Components:
a) Bonus
(8.33% of BASIC +DA+ADA)

b) Funeral Fund
Rs.3000 to the ward and family of the dad.
Every month Rs1/- of all higher executives salary is maintained for this fund.
3.13 Employee Welfare:

- “Labour welfare means anything done for the comfort and improvement.
Intellectual or social of the employees over and above the wage paid which
is not a necessity of the industry”
- Employee welfare or labour welfare means “The efforts to make life worth
living for workmen”
Intra mural welfare activity of Sumul:
 Convenience and comfort during the work
 Workshop and cleanliness, lighting, elimination of dust, smoke, gases
 Control of effluents
 Supply of necessary beverage, pills and tables, tea, coffee
 Notice boards, posters, information, slogans
 Distribution of work hours and provision for rest hours, meal times and breaks
 House keeping, garden, passage, lawns, floor maintenance
 Medical facilities
 Safety instruments such as guards, caps, shoes, aid equipments
 Uniform and changing rooms
 Urinals and latrines, wash basins, waste disposal
 Provision for drinking water
 Economic services such as health insurance and bonus schemes

Extra mural welfare activity of Sumul:
 Transportation
 Discount in purchase on medicines
 Roads, lighting, garden
 Communication facility
 Security
 Training and development programs
Other Facilities:
1. Washing facilities:
The facility of washing clothes is provided to all the employees.
2. Store & Drying facility:

The full time workers are given personnel lockers to store their things and also
facility for drying clothes.
3. Canteen facility:
It is providing employee to take Break-fast, Lunch and Dinner at economic price.
4. Rest room:
It is also provided to take rest during the Lunch hours.
5. First aid facility:

 It is given for quick remedy of employees. When any accident occurs during the
working hours of the organization.
6. Vehicle parking space:

It is provide for employee, worker and visitors separately.
7. Accommodation:
Organization is providing township & accommodation facilities to employees.

8. Vehicle loan:
 It is given to Employee / Executive only.
9. Department stores:
 “KAMDHENU” department store is in the staff ready credit society / Staff
Quarters to purchase all necessary items at economic rate for employee.
10. Uniforms, Shoes and Raincoats:

Uniforms, Shoes and Raincoats are provided to all employees and workers.
11. House rent recovery:

House rent recovery for those employees who are live in rental house.
3.14 Motivation Programmer for the agents:-
Agents are front soldiers in the market, so keeping them motivated is very essential.
In this regard the union has planned to conduct several programs regularly,
such as………..
• Arranging agents meeting area wise in heir area itself to understand their problem.
• Half yearly general meetings of all agents in dairy.
• Performance based award system.
• Recognition of regular agents.
• Arrangement of soft loans for vehicle, deepfreeze and household things with the
negotiation of bank.
• Solving agents’ problem immediately.
• Training of agents on consumer behavior.
• Efficient cash collection through more cash collection centers near to agents
selling price.
• Agent renewal system introduced.

3.15 Personnel Information System & Payroll Accounting System
 Objectives of the Personnel Information:
 Basic information about each employee

 Supports unlimited earning & deduction parameters
 Salary Processing & Pay slip generation
 Bonus / Ex-gratia calculation
 PF & SAS passbook
 Payroll data used for Income Tax calculation
The HR department keeps the information of each and every employee from top
to bottom level workers. This information is updated from time to time. This Personnel
information includes name, address, gender, birth date, designation, name of the
department where the employee or worker is working, job responsibilities, shift no., job
code no. etc. With the photograph of the worker/employee.


Chapter – 4 PRODUCTION DEPARTMENT 90

4.1 Production Management Structure of Organization
4.2 Milestones of production process
4.3 Activities & Map of Activities Area
4.4 Production Plan
4.5 Production Process
4.6 Production of different products by SUMUL
4.7 Milk Procurement & Milk Sales
4.8 Micro Motion Studies
4.9 Quality policy, TQM, Environment Policy
4.10 Support services
4.11 Material handling equipments
4.12 Monitor & Measurement
4.13 Co-ordination with other Departments
4.14 SUMUL’S Input & Extension Programmer To help Producers
increase their Milk Production
4.15 Radical Improvements
4.16 Highlight of productivity Improvement Efforts

4.1 Production Management Structure:
Managing Director
(Mr. Jayesh H. Desai)
In charge Strategy Production manager Production manager

Business Unit Center (1) (2)
Packing of Shrikhand Milk Processing Cream Processing
All Sweets Cream Processing Tanker Handling
Packing of Pasteurized Raw Milk

Milk Transportation
Packing of Pasteurized Milk

Manufacturing of Transportation
Flavored Milk
Packing of Manufacturing Skim

Manufacturing of milk Powder
Ghee
Packing of
Manufacturing of
Curd

4.2 Milestones of production process:

4.3 Activities of Production Departments:

1. Production of planning
2. Material requirement planning
3. Store finished goods and raw material
4. Quality control
5. Packaging
6. Painting of pack product
7. Transport to Marketplace
8. Washing and cleaning of equipments, regular maintenance of machine and
other equipments.
MAP OF ACTIVITY AREA:-
Cilling Centre
Main Dairy Plant
km distance from surat
Taluka/ Tahsil Name Cattle Feed Factory

4.4 Production Plan:
1. Sales / marketing department is sending daily demand to the production

department as per demand of marketing department.
2. From Gujarat Co-operation Milk Marketing Federation every week sending
demands of Amul products.
3. According to satisfy both production department prepare their production plan
schedule. Production plan schedule generates raw material requirements
packaging material & it contain utilize requirements
4.5 Production Process:

Milk cycle:
6. A machine milking the cow

7. Milk producer’s co-operative Ltd collects the milk from the entire village.
8. The collected milk is tested against the set standard. That insures
quality of milk being received from the root level.
9. The received milk is sold locally as well as transported to the dairy for
the further processing
10. The milk is tested in dairy lab. No compromises with the quality of milk
being received.
11. The qualified milk is received at raw milk receiving Dock at dairy.
12. Cleanliness is always the top priority at any stage of milk cycle cans
cleaning process.
13. Milk is pasteurized, clarified and standardized using lasted technological
machine & equipments.
14. Milk again tested before being packed.
10. Pouch filling for all the end users.
11. Packed milk stored in well-maintained cold storage
12. Milk dispatched for the sale in the marker.

Thus, the production process at SUMUL dairy is derived into two main stages.
They are as follows-
1. Process flow from Village to Chilling Centre Level,

2. Dairy plant to Market Level,
PROCESS FLOW FROM VILLAGE

TO CHILLING CENTRE
Milking by Producer Producer approaching DCS Grading & Testing at DCS
Transportation to Chilling Centre Collection at DCS
Receiv ing at Chilling Centre Testing at Chilling Centre Transportation to Dairy Plant

 The processing after the milk is received by dairy includes the following
Stages:
1. CLARIFICATION:-
Milk is clarified to remove unseen dirt & dust or foreign material which may be
harmful to our body.
2. PASTURIZATION:-
Milk is pasteurized to kill all pathogens (harmful bacteria) for our body & this
process is ensured through automatic controller (Flow diversion value) which
allow only pasteurized to tank for packing.
3. CONSISTANCY:-
Sumul has certified ISO9002 Quality System & HACCP (food safety) and Sumul
has undergone through inspection audit system for continuous improvement &
effectiveness of corrective action.
4. STANDARDIZATION:-
Milk is being standardized according to the type of milk & set standard as per ISO
& PFA. Standardized milk is checked through MILKO SCAN (like body scan)
which ensure standardization of each constituent of milk. This type of machine’s
available to Sumul only in this region. Small player can not have this cost of Rs.
300000.
5. BACTERIOLOGICAL LABORATORY:-
Sumul has well established bacteriological laboratory to ensure safe milk supply to
our valued customer.
6. STAFF:-
Sumul has highly qualified staff that ensures each test & process in compliance
with set standard. Each employee has undergone for TQM Training & work for
KAIZEN (continuous improvement) for value or money for customer.
 The whole process in the dairy is done through Ss Pipe only & no where it is
through by hand.
 The equipment cleaning is done through Centralized automatic CIP Unit.

DAIRY PLANT TO MARKET LEVEL
Milk Receiving Testing of Milk Processing
Packing Processing Processing
Storage Delivery Market
4.6 Production of different products by SUMUL:-
The dairy plant having capacity of 40,000 LPD was designed in 1968 with
Swedish credit loan under technical expertise of N.D.D.B.; and today, with gradual
expansion of the processing and production facilities, Sumul can handle 6, 00,000 LTPD
and process and pack milk and manufacture milk products like Ghee, Butter-milk, Butter,
Milk powder, Lassi, Masala Chhas, (Jome) Flavored milk, Curd (Dahi), Paneer and
Indigenous sweets. Sumul also pack Amul Masti Dahi, Amul Flavored Milk and Amul
Paneer. Thus, the milk business is generating more than Rs. 790 crores a year.

4.7 Milk Procurement & Milk Sales:(2008-09)

Milk Procurement :
Milk Sale :

Month Wise Milk Procurement (Kgs.) V/S.

Milk Sale (Ltrs)
(2008-2009)
21858457
APR(08)
19845750
21852128
MAY(08)
19577585
20228022
JUN(08)
19861320
20127961
JUL(08)
21280632
19320677
AUG(08)
M 21915543
O 20590552
SEP(08)
21800820
N
T OCT(08)
23513653
21352459
H
S NOV(08)
25297750
18045000
27806780
DEC(08)
21975528
29250306
JAN(09)
21660723
25574913
FEB(09)
19903296
27449677
MAR(09)
22110285
0 5000000 10000000 15000000 20000000 25000000 30000000
Milk Proc.(Kgs.) Milk Sale(Ltrs.)

Taluka Wise Milk Procurement (Ltrs.) V/S.

Cattle Feed Sale (Kgs.)
(2008-2009)
MAHUVA 41149706
15992535
VYARA 39294856
9015240
MANDVI 32767161
7199205
OLPAD 26778767
8366995
SONGADH 25110422
9477325
NIZER 23325386
3912155
T MANGROL 19170179
3964155
A
VALIYA 16895224
L 2712515
U VALOD 2242695
11556825
K 9900699
BARDOLI
2499965
A
UCHCHHAL 8980136
2402010
UMARPADA 7710675
3299270
KAMREJ 7327065
2437955
PALSANA 3653195
1162070
CHORYASI 1384503
1659125
AHVADANG 843536
362960
0 10000000 20000000 30000000 40000000 50000000
Taluka wise Milk Proc.(Ltrs.) Taluka Wise C.F. Sale(Kgs.)

4.8 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)
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.
4.9 QUALITY POLICY
“WE AT SUMUL DAIRY ARE DEVOTED, DEDICATED AND MOTIVATED

WORKFORCE TRAINEDTO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY
AND SAFE MILK AND MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF
CUSTOMER SATISFACTION.
WE WILL ACHIEVE THIS BY MONITORING AND UPGRADATION OF

PROCEDURES AND PROCESS APPLYING SCIENTIFIC INNOVATIONS AND STATE
OF THE ART TECHNOLOGY AND REMAIN ECOFRIENDLY QUALITY AND FOOD
SAFETY MANAGEMENT SYSTEM.”

TOTAL QUALITY MANAGEMENT (TQM)
 TQM (Total Quality Management) was implemented at SUMUL on 6th May, 1996
with the help of EICHER CONSULTANCY, Mumbai.
 TQM (Total Quality Management) which includes………

1. Total employee involvement,
2. Total quality Control,
3. Total Waste Elimination through Quality circles and
4. Continuous Improvement
Sumul has adopted International Standards for Quality Management. QAS

Australia has certified our quality management systems by issuing ISO 9002, ISO-14001
and H.A.C.C.P. Certificates. By adopting quality management system, Sumul 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 our workers and staff & with better leadership & guidance
of Board of Directors, Officers, Continuous training programs under TPM and GMP, we
have 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.

TOTAL PRODUCT MANAGEMENT (TPM)
 TPM (Total Product Management) was implemented at SUMUL

on 19th, October, 1999 with the help of TQM center at Surat under consultancy of
Dr. B. C. Naidu.
 OBJECTIVES OF TPM
• Zero breakdown
• Zero rejection
• Zero accidents
 CORE THEME OF TPM
• Cleaning is Inspection
• Only the operating man can tell what is the actual problem
LOSSES UNDER TPM

6 BIG LOSSES
• Breakdown / Machines Failures
• Setup & Adjustment losses
• Small Stops & Idling
• Speed Losses
• Rejects during production
• Rejects during running

SEVERAL DEVELOPMENTS/ PROGRAMS/MANAGEMENT TOOLS
• AMCS ISO 9K,

• BCU ISO 14K,
• CMP FSMS 22K,
• CD program SGA,
• AI training GMP,
• DIPA program TQM-TWE ; TEI ; TQC,
TPM,
QUALITY CIRCLE,
KAIZEN-CA, PA, NC,
HACCP,
Sumul is meeting International Standards through getting the International Licenses

like-
 ISO 9002 :-
Sumul’s Cattle Feed Factory has received ISO - 9002 thus established that
cattle feed manufactured at it’s cattle feed plant is under 100% quality control
system, is safe & meets International Standard Certification.
 ISO 14K :-
During March, 2002 audit, Sumul Union has received I.S.O. 14001
Certification. This Certification has enhanced it’s image in International area and
placed Sumul in front line in Dairy Industry in the State of Gujarat. This certificate
will help Sumul in International business competition.
 HACCP ( Hazard Analysis Critical Control Point)

INTERNATIONAL I.S.O - 14001 CERTIFICATION FOR ENVIRONMENT CONTROL
Accreditation of ISO 14001 certificates is a testimony of our commitment towards

our customers 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 lines; installation of Automatic Machinery in various production lines is in
progress.
QUALITY & ORGANISATIONAL FOCUS
- Sumul is doing value addition at each stage in terms of Improving raw milk quality,
controlling microbiological growth & Improving Product shelf life Coordination
between CD Development Dept, Chilling Centers, Marketing, Production & QC.
 Undertaking activities like - Clarification, Pasteurization, Standardization,

Bacteriological Testing etc Process Reengineering undertaken
 for optimizing process & storage temperature
 Reduction in Material Handling during manufacturing process & usage of SS
Pipelines & Equipment. Technological upgrading of equipment's by incorporating
state of art technology & Automation in certain areas
 CIP through Centralized CIP unit supported by Manual Scrubbing of Pipelines &
Tanks etc.
 Improving MBRT at all levels
Adherence to Standards
 PFA, W&M & NDDB

 ISO 9002 / HACCP & 14001
Improving Good Manufacturing Practices Implemented

TQM, KAZIEN, SQC & TPM concept at all stages.
 Increased Overall Equipment Efficiency (OEE)

 Reduction in Machine Down Time
 Increase in Preventive Maintenance
 Reduction in Leakage, Quality Rejection & Reprocessing
 Availability of Maintenance Personnel at Floor
 Multi skill development
 Reduction in Utility Consumption
Computerization at each level, Centralized Oracle based Data Management System for
all activities for sharing information & analyzing it whenever required.
Employees Development
 Training on Personality Development

 Training on Self Management Leadership (SML)
 Training on Quality Concepts
 Total Quality Management (TQM), Quality Circle, Small Group Activities, Kaizen,
Statistical Quality Control (SQC)
 Total Productive Maintenance (TPM)
 ISO 9000 / HACCP & ISO 14001
OEE CALCULATION
OVERALL EQUIPMENT EFFICECTIVENESS = O.E.E.
= AVAILIBI LITY X PERFORMANCE EFFICIENCY X RATE OF
QUALI TY PRODUCTS
AVALIBILITY = LOADING TIME – DOWN TIME

LOADING TIME
PERFORMANCE = IDEAL C YCLE TIME X PROCESS

AMOUNT
EFFICIENCY OPERATING TIME
RATE OF = PROCESSED AMOUNT – DEFECTIVE

AMOUNT
QUALITY PROCESSED AMOUNT
PRODUCTS

ENVIRONMENT POLICY
Surat District Co-operative Milk Producers Union Ltd., is engaged in

manufacturing of Milk and Milk Products and Marketing it within Surat District under
“SUMUL” brand and outside Surat district under the brand of “AMUL “ or “Sagar”. We are
conscious and committed to protect and preserve the environment.
 The guiding principles of our Environmental Policy are as follows:-
Comply with all applicable environmental legislation, regulations and other requirements
Control Plant operations to conserve natural resources such as water, electricity and fuel
and prevent pollution
Promoting greening of Earth in and around our manufacturing complex * Minimizing

generation of waste / effluents. Continual improvement of our environmental
performance Creating awareness towards environmental issues among suppliers and
stake holders
4.10 Support Services:

 Maintenance
 Packing
Maintenance:
Maintenance is necessary for both raw materials as well as finished goods. The
company has to put stress on the matter regarding the spoiling of goods due to weather
or other aspects. At SUMUL, there is a strong maintenance procedure on raw materials
& final products, because such milk products should be maintain in such way they
maintains their quality for the long period of time.

Packing:
Packing is one of the most important factors that management must have
to consider in mind. When the raw materials are converted in the finished goods all
the products are then send to the packing room. Here different machines are
available for different types of packing. The firm is now going for a new type of
packing called Gable top packing. The main advantage of such type of packing is in
this packing milk remains fresh for about 10 days. Soon, Sumul milk will be available
in such type of package.
4.11 Material Handling Equipments Used
1) Pipeline:
Pipe lines are used to convey liquid milk from tank to standardized plant. They are
made up of steel or other suitable anticorrosive material to with stand wear & tear &
pressure of liquids. When height is to achieved, pumping is done through pipes,
other wise gravity flow is used.
2) Trolleys:
In Sumul, most of the Dairy products are produced. So, there is strong need to keep
the trolley for movement of that kind of products. The entire dairy plant is so much
big that it is not easy to move all the product with men power labour.
So, there is this type of trolleys are used:
 Crates Trolleys
 Cans Trolleys
 Plastic Tube

3) Belt Conveyors:
Belt-Conveyors are gravity of powered equipments primarily for moving uniform
loads between fixed prints. They may be fixed or portable & horizontal or inclined.
Their speed can be changed and direction can be altered by smooth curves or 90
degree bends with the help of additional belts.
4) Trucks (Tempos):
There are no. of trucks (tempos) used for transportation and delivery of milk and
milks product to the various parlors and dairy.
 No. of Material Handling Equipments Used:
Equipment Quality
Milk Tankers :
Sumul 13
On contract 11
Tempos (on contract) 70
Belt Conover 8
Crates 40,000
Cans :
40 Liter. 250
20 Liter. 25
Crates Trolleys 50
Cans Trolleys 10
Plastic Tube 5
Glass Betties (200 ml) 35,000

4.12 Monitoring & Measurement:
Measurement:
1. Partly ledger and account verification monthly.

2. Internal customer satisfactions quarterly.
3. Bills payable monthly.
4. Preparation of financial repots cash/fund utilization weekly.
Monitoring:
 Internal document:
1. Bank reconciliation statement monthly.

2. Internal audits.
 External document:
1. Sales tax registers number certification.
2. Center sales tax number center.
4.13 Co-ordinations with other Departments

A. Stores and Production:
There are two-store department in SUMUL
1. Store department for raw material.

2. Store department for finished goods.
 For raw material:

Whenever the production department needs something from the stores
stock it sends person with show the quality demand and will be signed by the
authorized person of that department. The store in-change will provide the
demanded stock and make an entry in the bin card which shows the quality
received and stored.

 For Finished material:

Whenever the production process is completed, the finished goods are sent
to the stores department, with the permission of production manager. The store in-
charge checks the production and than manes an entry in his register about the
quality received and stored.
B. Purchase and Production
Whenever the production department wants some goods to be purchases it

sends an indent letter to purchase reference is sent to store department for
verification.
The store department verification the stock position and later on by giving
code numbers and last purchase reference is sent to purchase department. After
necessary process the purchase activity is done. When purchase procedure is
completed the production department is informed and the purchase goods are stores
department.
C. Purchase and Dispatch
When the production of milk products is completed they are in the store
department and whenever demand arises, these products are dispatched.
Where as for three types of dispatch takes place. In morning, evening and
late evening. The sale order id received through phone from distributors. Accordingly
the production and dispatch procedure takes place.
D. Production and Engineering
The so-ordination between production and engineering department is very

informal whenever any problem occur in any machine of production department, the
authorizes person of that department informs the engineering department through
phone and the concerned engineer is send for repairing the machine.

4.14 SUMUL'S Input & Extension Programmers to help

Producers increase their Milk Production:
Once a guaranteed and remunerative milk market is assured to the producers for
their entire marketable surplus round the year, they are stimulated to increase milk
production and productivity by adoption of scientific Animal Husbandry and input
programmer. To materialize this, Sumul maintains a well-knit ‘Animal Husbandry &
Extension Organization’ in its ‘Animal Husbandry department’, which provides various
essential inputs to the Member Producers through their milk societies, viz. Veterinary
Health Cover, Artificial Insemination, Animal Disease Diagnostic Laboratory, Balanced
Cattle Feed, Improved Fodder Seeds etc.
A. ROUTINE & EMERGENCY VETERINARY SERVICE AT PRODUCERS' DOORS:
Sumul has commenced Mobile Veterinary Clinic Services in the villages since
June 1977. However, year by year, the number of mobile clinics is increasing embracing
more and more villages on their routes and the services are being intensified due to
increase in adoption rate by the Member Producers. Emergency services are made
available to any producer member, round the clock at reasonable cost.
 The distinct benefits achieved by the Radio-Telephone Service in terms of saving

Veterinary-men hours, transport cost and timely treatment of emergency cases
cannot be over emphasized.
A veterinarian, while visiting a village on route or emergency visit not only

treats the case, but also tries to educate the milk producers on the spot on the preventive
methods of the disease under treatment & where warranted on the sound management
methods of nutrition, breeding, disease control and general management of the animals
as well, by his proper advice and good results of this treatment he wins the confidence of
the producers and they listen to his advice for adoption. Under Veterinary health
coverage programmer, Sumul organizes ‘veterinary camps’ at villages.

- Sumul organizes ‘veterinary camps’ at villages. The details are mentioned below.
Sr. no Year No. of camp No. of cases
1 1993-94 262 35342
2 1994-95 305 40594
3 1995-96 355 43009
4 1996-97 375 50858
5 1997-98 400 58745
6 1998-99 420 70057
7 1999-2000 432 79218
8 2000-2001 500 101346
9 2001-2002 501 135522
B) ARTIFICIAL INSEMINATION:
The Artificial Insemination Training Centre at Sumul Campus is provided with all
necessary teaching aids and staff. Sumul has organized a Training Centre for Artificial
Insemination and Veterinary First Aid, where modern facilities for training, hostel
accommodation and essential amenities are provided to the trainees. The above training
(50 days programmer) is provided to the selected village youths not only of this district,
but drawn from all over India.
C) The main objectives of extending Artificial Insemination Services to the producers'

breed able animals is to improve the genetic potential of milch animal by selective
breeding and those of cows by cross-breeding with Jersey OR Hosstein Fresian
Semen and also to bring down the long dry periods of milk animals within reasonable
limits. These twin objectives, when materialized, will greatly accelerate the pace of
production and economic in dairying at the producers' level.

D) SUPPLY OF BALANCED CATTLE FEED TO SUPPORT MAINTENANCE,

GROWTH AND MILK PRODUCTION ETC.:
Balanced Cattle Feed is one of the most essential items in the total package of
inputs to sustain productive function and reproductive health of milch animals and
thereby boost-up their overall productivity. With this view, a Balanced Cattle Feed
Plant named ‘Sumuldan’ Factory was set-up at Chalthan in 1970 to provide scientifically
formulated range of nutritious Balanced Cattle Feed to milk producer’s at most
competitive and reasonable price. Balanced Cattle Feed are now manufactured and
supplied by Sumul for various categories of animals. Balanced Cattle Feed is
manufactured using multi-ingredient least-cost formula and maintaining the DCP-TDN
contents of each, as per the required nutritional feeding standards. The production
capacity of the plant has been raised to 300 MT's. Per day. Due to extended production
capacity, the factory is simultaneously being equipped with increased storage capacity
for raw-materials and this will strengthen the Union to meet the growing requirement of
Cattle Feed more effectively & speedily in its area.
E) PROGRAMME FOR FODDER DEVELOPMENT IN THE MILK SHED AREA:
Green fodder is generally considered as essential and the cheapest source of

cattle-feed nutrients to support animal health and the productivity at economic costs and
also economizes on the use of costlier concentrate feeds. The milk producers are,
therefore, constantly advised by the extension team to grow green fodder as per their
optimum requirement for animals following a cropping scheme suited most to the agro-
climatic conditions of the area to give maximum DCP-TDN per acre per year at economic
costs.
F) SUMUL'S RURAL EXTENSION PROGRAMME IN ACTION:
To enlighten the common milk producers in scientific animal husbandry practices

and to place their milk production enterprise in a sound footing and make it profitable,
Sumul carried out rural extension programmers in the village regularly.

4.15 RADICAL IMPROVEMENTS:-
A.) YEARWISE FAT LOSS & MONTHLY MILK HANDALING:
Sumul has implemented several techniques and Sumul also invites innovative
techniques from its staff and hence Sumul has successfully got some achievements in
the matter of energy saving and water consumption in the processing, reducing water
v/s milk ratio, which can be seen from the below analysis presented with the bar
diagram’s.
YEARWISE FAT LOSS%

07-08 => 49 % Reduction in Ratio
2.5 30000
2.26 2.3
22599 23027 23861 25000

2 18889 18712
1.66
1.53 1.56 1.51 1.57 1.52 20000
1.5 1.43
17528 18521
16501 1.14 15000
15405 15140
1
10000
0.5
5000
0 0
1998-991999-002000-012001-022002-032003-042004-052005-062006-072007-08
Fat lost per month ( in %) Milk Handling per month (in 1000 ltrs)
Today people have become health conscious and hence it’s very essential for the
dairy to look into the matter of fat % of dairy’s processed milk. And hence Sumul has
achieved 49% fat loss by the year 2007-08.
The above diagrammed also shows the Milk handling per month by Sumul dairy.
Sumul dairy has achieved an increase of 57% for last 1 decade. (I.e. from 1998-99 to
2007-08).

A.)WATER V/S MILK RATIO:
Sumul has reduced the ratio of milk v/s water by 0.46 Kilo
B.)SPECIFIC ENERGY CONSUMTION:

In the above diagrammed year and energy consumption (in Kilo wht per Metric
tone) are presented on the x-axis and y-axis respectively. The above diagrammed show
Sumul dairy’s efficiency in the saving of energy over the years. Initially Sumul utilized
33.1 kwht/mt energy but now the energy consumption utilized by Sumul has gradually
decreased to 27.32 kwht/mt. Sumul has achieved a decrease of 17.46% in the level of
Energy Consumption by the use of various innovative techniques.
This decrease in the consumption of energy saved management’s 352.81 lakh

Rs. which could have otherwise been wasted, but this saving is used by Sumul dairy to
pay more to the milk farmers for their contribution. Initially the saving for les energy
consumption was 53.53 lakh but it increased to 352.81 lakh, which shows a phenomenal
change in saving. The cumulative saving in energy conservation is shown in the below
bar-diagrammed
Comulative saving in Energy Conservation

400 352.81
350
300
236.55
Comulative 250
energy 200
(In Lakh) 150 114.23
100 53.53
50
0
2004-05 2005-06 2006-07 2007-08
YEAR
Comulative saving in Energy Conservation

D.) ENERGY COST TO MANUFACTURING COST:
The % Energy cost to the manufacturing cost is also reducing by 42.08%, which is
also a result of the innovative techniques used by Sumul Dairy for production.
4.16 HIGHLIGHTS OF PRODUCTIVITY IMPROVEMENT EFFORTS
Surat District Co-operative Milk Producers' Union Limited (SUMU) is an important

Co-operative democratic institution in Surat. Sumul through its Policies & appropriate
technology has helped farmers in increasing milk production and thereby milk
procurement.
Prior to Sumul's entry, middleman exploited producers, as well as consumers with

the sole objective of maximum profit. Sumul meets major requirement of milk of the
citizens of Surat and nearby urban area. Sumul was born to meet the needs of milk
producer's i.e. to eliminate middleman and provide quality milk and milk products to
consumers at a reasonable price.

Sumul provides milk collection facilities in each Village. The milk is promptly
transported twice a day i.e. morning and evening to nearest Chilling Center. At present
81 Milk Routes are in operation. The milk is chilled to 3 - 4 C and is then transported to
Dairy Plant at Surat in insulated milk tanks.
Following table shows details of Chilling Centers in Operation:
Name of Chilling Center Chilling Capacity. Distance from Surat
SUMUL DAIRY 5 Lakh LTPD 0 km
Bajipura Chilling Centre 3 Lakh LTPD 50 km
Navi Pardi Chilling Centre 2 Lakh LTPD 25 km
Uchchhal Chilling Centre 1 Lakh LTPD 105 km
Nizer Chilling Centre 63,000 LTPD 175 km
Chasvad Chilling Centre 30,000 LTPD 100 km
Dediapada Chilling Centre 30,000 LTPD 135 km
Sumuldan Factory 200 MT PD 18 km
Sumul tests pooled samples of milk received from society for fat & SNF and pays
the cost as per the price schedule. The society collects random samples of milk of
individual member and the sample is sent to dairy for analysis. About 8 - 10 samples per
month are collected. Society pays milk producers on the basis of quality of milk.
Sumul introduced Computer based milk testing and weight recording system
known as AMCS. Till now 160 AMCS are installed. These machines give quality,
quantity & price on the spot. There by milk producer can know details in person.


Chapter – 5 FINANCE DEPARTMENTS 121

5.1 Hierarchy of Finance Department
5.2 Objectives of Finance Department
5.3 Present Scenario
5.4 Turn over information

5.5 Budgeting & Planning
5.6 Taking loans (Sources of funds)
5.7 Issuing Shares
5.8 Source of Finance
5.9 Cost system
5.10 Payment Process

5.11 Interpretation of final accounts
5.12 Treasury operation
5.13 Importance data of the previous financial year
5.14 From where does 1 Rs. Come (Income)?
5.15 From where does 1 Rs. Go (Expenditure)?
5.16 Ratio Analysis

5.17 Analysis drawn from it
5.18 Working capital

5.1 Hierarchy of Finance Department:
Managing Director
(Mr.Jayesh H. Desai)
Material Manager Accountant Manager Finance Manager
Assistant Manager
Senior Executive
Junior Executive
Senior Assistant
Junior Assistant
Workman
Finance management is that managerial activity which is concerned with the

planning and controlling of the firm financial resources. Still today it has no unique body
of knowledge of its own and draws heavily or economic for its theoretical concept.
“Finance management means the use of such managerial function as planning

and control to undertake finance function.”
- Earnest Walker

Sumul is the co-operative so it has not special financial department.

Sumul require a lot of funds for meaning its working capital needs and other obligations.
It manages its working capital needs through internal funding only. There is regular,
assured and smooth in flow of cash from milk sales from the agents to dairy’s Cash
Collection Centers on day-to-day basis. The dairy runs there centers for all 365 days
without fail. Intact there is a separate cash recovery department in the organization to
look exclusively this aspect. Because of its excellent cash collection system. Sumul
generally does not face any difficulty in dispensing amount to the producers every month
and meeting other obligations. However, for the expansion work and setting up new
projects, it takes loans from NDDB.
5.2 Objectives of Finance Department:
 The main objective of finance department is Sumul are as under.
1. To monitor & measure debtors

2. To prepare profit & loss account
3. To maintain working capital at minimum level compared to last year.
4. To prepare a balance sheet of 7th may each year.
5. To monitor & measure internal customer satisfaction.
6. To increase short-term investment by 10%.
5.3 PRESENT SCENARIOS:
• Population growth in Surat – 6.7 %

• Milk receipt Reduction – 6-7 %
• Sales growth – 13 %
• Turn over expected – 725 Cores
• Present Avg. Milk Receipt – 7.75 LLPD

5.4 TURN OVER INFORMATION:
YEAR CARORE 2001-02 353
94-95 149 2002-03 382
95-96 184 2003-04 485
96-97 234 2004-05 536
97-98 288 2005-06 548
98-99 290 2006-07 647
99-2000 311 2007-08 700
2000-01 345 2008-09 790
790
800
700
700 647
600 536 548

C
485
R 500
O 382
400 345 353
R 288 290 311
E 300 234
184
S 200 149
100
0
94-95 95-96 96-97 97-98 98-99 99- 2000- 2001- 2002- 2003- 2004- 2005- 2006- 2007- 2008-
2000 01 02 03 04 05 06 07 08 09
YEAR
From the study of the above diagram, we can see that Sumul has made a
continuous progress in their profit making figures. The present turn over of the firm is
790 crores which is 90 crores more than the profit of the previous year.

5.5 Budgeting & Planning:
Capital budgeting decision pertaining to fixed and long term assets which by
definition refer to assets which are in operation and yield a return over a period of time ,
usually exceeding one year .
Capital budgeting is the most important and complicated problem of managerial

decision. Because it is concerned with designing and carrying out through a systematic
investment programmes. It involves the planning of such expenditures, which provides
yields over a number of years. The firm’s investment decision would generally include
expansion, acquisition, modernization and replacement of the long-term assets.
There are two types of methods for evaluating a project:
 Discounted Method: -
I. Pay Back Period

II. Average Rate Return
Non-discounted Method: -
I. Net present Value

II. Profitability Index
III. Internal Rate of Return
In short, the capital budgeting decisions means a decision as to whether or not

money should be invested in long term projects.
Such projects may include the setting up of a factory or machinery or certain

creating additional capacities to manufacturing part which at present may be purchased
from out side. It includes a financial analysis of the various proposals regarding capital
expenditure to evaluate their impact on the financial condition of the company for the
proposal to choose the best out of the various alternatives.

Annual Business Plan:
The annual business plan is prepared by taking the information regarding sales
of every product. The sales officer compile these data taking into consideration
growth rate of city population, per capital consumption so as to arrive at overall
market size and the targeted market sale for Sumul product, for the effectiveness of
annual business plan the data regarding marketing channel, and product mix are
needed.
 Data Required for Annual Plan:
1. Product mix plan
2. Marketing channels
3. Manpower requirement
4. Estimated investment
5. Institutional demand
6. Segment wise demand estimation
7. 5 Years procurement analysis
8. 5 Years procurement capacity
9. Urban population demand

5.6 Taking loans (Sources of funds):
Every firm needs money or funds for the activities of it’s organization and
they all takes it from either share capital or loans like debentures, bonds etc, This is
the corporate company so it is no more taking loans or the sources of funds because
in the company to making the profit in the end of the year it is reinvested in the
second year in the company.
 Reserve fund & other funds: 16,85,26,228
 Debenture Redeemable: 4,54,500
909 debentures Rs.500/- each
 Loans: 42,32,87,520
27,08,078
N.D.D.B. (operation flood)
2,05,79,442
Cattle loan etc.
40,00,00,000
Short term Loan
Interpretation:-
 At the and of the year Sumul has….
 Reserve fund & other source of funds Rs. 16,85,26,228
 Redeemable Debenture Rs. 4,54,500
 Total Loans Rs. 42,32,87,520

5.7 Issuing Shares:
 Authorized Share Capital: 10,00,00,000
(10, 00,000 ordinary shares of Rs.100/ each.)
 Share Capital (Issued fully paid up.) 4,23,67,200
(4, 23,672 ordinary shares of Rs.100/- each.)
Interpretation:-
 Sumul has 10, 00,000 ordinary shares of Rs.100/ each.

So, Authorized Share Capital Rs. 10,00,00,000
 Sumul Issued Share Capital is 4,23,672 ordinary shares of Rs.100/- each.

Which are fully paid up.
So, Share Capital Rs. 4,23,67,200

5.8 Sources of Finance:

In the Sumul dairy requirement of finance is major into two major areas.
1. In working Capital
2. Investment on expansion
These requirements fulfill by taking loan and issuing share.
(1) For working Capital:
To meet the needs of arising working capital Sumul makes transactions from
the following banks.
 The Surat District Co-operative Bank Ltd, Surat

 Sarvoday Sahakari Bank Ltd, Surat
 State Bank of India, Surat
 Surat Mahila Nagrik Sahakari Bank, Surat
 Indian Bank, Surat
 Dena Bank, Surat
 Co-operation Bank, Surat
(2) For Investment on Expansion:
 National Dairy Board

 Share capital
 Debenture

5.9 Cost System:
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 minim um 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
------------------------------
Cost

5.10 Payment Process:

1. Collection of sales bills & sales data
2. Data verification with sales information
3. Feed concern data in computer
4. Feed duration data in computer
5. To pass duration entry to the computer.
 To the Milk Producers:
Finance department will make payment on the base of certified & approved bills.
1. Receipt of milk collection data.

2. Verify the data with concern department & payment for each dairy co-operative
society.
3. Feed all the data in computer with oracle support
4. Reduction of DCSP (dairy co-operative society purchase) & other miscellaneous
5. Account of net amount payable to society is prepared.
6. The payment will send by MT (Money Transfer) by district co-operative bank.
 To The Transporters:
All the come to the finance department for final payment. Every bill is certified by
the concern department authority. They have to give justification for any expenses.
And then finance department will make payment to the transportation for any
expenses & then finance department will make payment to the transporters on the
bases of certified & approved bills.

5.11 Interpretation of Final Accounts:

From the study of the profit & loss account of the year 31-03-09, it can be
measure that the net profit of the firm (income-expenses) is Rs. 2,13,60,442 also from
the study of the final accounts. it can be easily seen that the firm is getting more & more
profit. Because the present turn over of the firm is 790 crores which is 90 crores more
than the profit of the previous year.
5.12 Treasury Operation:

The treasury operation of the company is panned in such a way so that it
maintains purchase cost, production cost, inventory management and budgeting based
on the market forecast. Treasury operation is maintained to facilitate demand and supply
condition, timely payments for purchases, meeting contingency expenses. Proper
dispatching of the good on delivery dates and minimizing opportunity cost. Some unseen
contingency may arise such as strike; flood fire etc. for this purpose also there way
should be made.
5.13 Important data of the Previous Financial Year:-

• Number of societies – 1051
• Milk procured – 24.33 Crores Kg
• Price paid – 295 Rs. Per kg Fat
• No. of members – 222307 No.
• Avg. Milk Sale – 5.96 LLPD
• Avg. Butter Milk sale – 74 KLPD
• Agents in Surat City – 2290
• Full Time sale centers – 251
• Agents in Surat Dist. – 207
• Sugar Sale – 1060 Qt.
• Tea Sale – 241 Qt.
• Net profit – 2.07 Crores

5.14 FROM WHERE DOES 1 Rs. COME (Income)?
 Milk Sale – 0.78

 Product Sale – 0.16
 Closing Stock – 0.05
 Other income – 0.01
Incomes:
Income Rs. 31-3-09 Rs.
By Sales (Milk & Product) 7,89,92,33,138
By Other Incomes 5,47,59,851
By Closing Stock 45,21,23,119
Total Income 8,40,61,16,108
5.15 WHERE DOES Rs.1 GO (Expenditure)?
 Milk purchase – 0.84

 Packing – 0.03
 Salaries/Wages – 0.02
 Transportation – 0.02
 R&D – 0.02
 Water, Electricity, Fuel – 0.02
 Processing – 0.01
 Maintenance – 0.01
 Distribution – 0.01
 Depreciation – 0.01
 Interest Exp. – 0.01

Expenditures:
Expenditure Rs. 31-3-20009 Rs.

To Opening Stock 51,74,24,884
To Purchase 6,60,15,91,585
To Transport Society 13,32,88,450
To Animal Husbandry & Extension 16,30,13,697
To Processing Laboratory etc. 5,75,20,835
To Packing Expenses 25,45,00,581
To Power,Water,Fuel Supply Exp. 13,41,78,111
To Salaries & Wages Exp. 18,32,04,096
To Provident Fund ESI & other Amenities 4,52,89,691
To Repairs & maintenance 5,28,69,828
To Distribution Expenses 10,04,94,233
To Stationary Expenses 49,51,560
To Insurance Legal fees 95,38,807
To Vehicle Tax, Municipal tax 34,03,664
To Continuous & concurrent Audit fees 61,34,003
To Sundry Expenses 58,10,249
To Interest & Bank Commission 4,05,70,877
To Depreciation 6,49,70,515
To Provision for doubtful debts 60,00,000
To Net Profit 2,13,60,442
Total 8,40,61,16,108

5.16 Ratio Analysis:
LIQUIDITY RATIOS:
1) CURRENT RATIO:
It measures the solvency of the company in the short term. It also indicates the
firm’s ability to pay its current liabilities .It shows the strength of credit, working capital
and capacity to carry on effective operation.
Current Ratio = Current Assets

Current Liabilities
Particulars 2007-08 2008-09
Current Assets 1,56,45,47,395 1,76,94,57,337
Current Liabilities 1,34,53,70,370 1,59,04,09,166
Current Ratio 1.16 : 1 1.11 : 1
The graph showing the Current Ratio of the “SUMUL DAIRY” for the last two
years is as follows:
CURRENT RATIO
1.18 1.16
CURRENT LIABILITY
CURRENT ASSET :
1.16
1.14
1.12 1.11
1.1
1.08
2007-08 2008-09
YEAR

Interpretation:-
As a conventional rule. Current ratio of 2:1 or more is considered satisfactory. We

can see from the above graph that, In year 2007-08, Sumul had C.R. of 1.16:1, though it
is less than standard ratio, but still it says that Sumul is able to meet its current
obligations. But in the very next year 2008-09, that of ratio has been reduced, ratio is
1.11, which means that for every one rupee of current liability, Sumul having 1.16 and
1.11 current assets in last two years.
But still it shows the little worse condition of Sumul, because the above ratio
indicates that, Sumul’s current liabilities are increasing more rapidly than its current
assets.
2) QUICK RATIO
It is used to measure the company’s ability to meet its immediate liability. This
ratio is important for financial institution. Higher ratio i.e. 1:1 indicates sound financial
position of the company.
Quick Ratio = Liquid Assets (C.A. – Stock)
Current Liabilities
Particulars 2007-08 2008-09
Current Assets 1,56,45,47,395 1,76,94,57,337
Stock 54,47,01,276 48,05,07,794
Current Liabilities 1,34,53,70,370 1,59,04,09,166
Quick Ratio 0.76:1 0.81:1

The graph showing the Quick Ratio of the “SUMUL DAIRY” for the last three years
is as follows:
QUICK RATIO
0.82 0.81
PRCENTAGE
0.8
0.78 0.76
0.76
0.74
0.72
2007-08 2008-09
YEAR
Interpretation:-
From the above graph and table, in year 2007-08, the quick ratio of Sumul was
0.76. We know that the standard ratio is 1:1, here that of ratio is little less; it means that
Sumul may fulfill its immediate obligations. In year 2008-09, that of ratio has been
increased and reached near to the standard ratio. So, we can say that Sumul can able to
meet its current obligations, if it requires immediately. So Sumul may find difficult to meet
its immediate obligations.
Thus, from the above all, we can say that Sumul should increase its liquid cash
either by reducing its stock or reducing its current liabilities.

3. Proprietary Ratio: = Shareholder’s Fund *100

Total tangible assets
= 4, 23, 67,200
47, 69, 45,273
= 8.88%
4. Debt Equity Ratio = Total long term debt

Shareholder’s Fund
= 63, 46, 35,448

4, 23, 67,200
= 14.98
5. Fixed asset to proprietary ratio:
= Fixed assets
Long term debts
= 47, 69, 45,273

63, 46, 35,448
= 0.75
Profitability Ratios:
6. Gross profit ratio = Gross Profit *100

Net Sales
= 1,23,23,39,788*100
7,89,92,33,138
= 15.60%

7. Net profit Ratio = Net Profit *100

Net Sales
= 2,13,60,442 *100
7,89,92,33,138
= 0.27 %
Efficiency Ratios:
8. Stock turn over Ratio: = Cost of Goods Sold
Avg. Stock.
= 6,66,68,93,350
48,47,74,002
= 13.75
5.17 Analysis drawn from it:
The turnover of Sumul Dairy has increased from 41 lakh to 790 crores from
1970-71 to 2008-09. Such a high growth shows Sumul dairy’s effectiveness in production
and distribution of milk and milk products with the use of various production techniques.
Initially the production didn’t increase much but it shows the highest increase in turn over
from 1995-96 to 2008-09.but the production shows the least increase from the period of
2003 to 2008-09
Such a phenomenal increase in turn over shows high efficiency in the

production management, process and distribution of milk and milk products. The turn-
over has increased 90 crores from the last year.

5.18 Working capital:
Generally, the term Working capital refers to that part of capital which is not tied
up in fixed assets but is used to meet the day-to-day requirements of business. It is
invested in current assets like cash, stock, bills receivable, debtors, etc.this type of
capital is used to make payments for purchase of raw material, Wages and to meet other
expenses till goods are sold and money is collected against it. The socks are to be
maintained continuously to meet demand for the product and some money is tied up in
the credit sales. Capital used for this purpose is called Working Capital.
In other words, working capital is that which is held to meet day-to-day

requirements of business, which changes from day-to-day, and which is converted in to
cash continuously. The risk element is low in it. Working capital I is also known as
current capital, circulating capital and floating capital. Some people call it variable capital
also.
There are two concept of working capital. According to one school of thought,
working capital means total of all current assets. Authorities like Meade and Montgomery
have accepted this Interpretation. According to the other interpretation, working capital is
the excess of current assets over current liabilities. Lincoln Stevens and Saliers are in
favor of this interpretation.

Method of Finding Working Capital requirement
Net Working capital = Net current assets – Net current liabilities
particulars 31st December Changes in W.C.
2007 Rs. 2008 Rs. Increase Rs. Decrease Rs.
Current
Assets:
Stock 5,40,26,404 54,47,01,276 49,06,74,872 -
Investment 4,77,44,132 4,97,44,132 20,00,000
Cash & bank 75,49,00,370 75,49,00,390 20 -
85,66,70,906 1,34,93,45,798
Current
Liabilities
Reserve fund 13,72,96,025 15,03,81,724 1,30,85,699 -

& other funds
Current 1,25,93,28,687 1,34,53,70,370 8,60,41,683 -

liabilities &
loans
1,39,66,24,712 1,49,57,52,094
Working 53,99,53,806 14,64,06,296 59,18,02,274 -

capital
Increase in - 39,35,47,510 39,35,47,510 -

W.C.
53,99,53,806 53,99,53,806 98,53,49,784 -

It was a matter of big pleasures and joy acquiring the valuable experience
to undertaking the practical training at “SURAT DISTRICT CO-OPERATIVE MILK
UNION LTD” (SUMUL), Surat. This unit has provided me the best of opportunities for
good and useful experiences for my study visit.
With the objective to gain Practical knowledge and experience in the

company and to study the activities of different functional area. It was good
experience at “SUMUL”. Studying about the different department. On the other hand
going for a market survey was an invaluable addition to my Knowledge. To
conclude in a single student, I personally feel that eight weeks [2 month] Training
at SUMUL has added many features to my knowledge wing which will definitely
help me to achieving a success during my future and career bright.
I observed all the aspects of the company with fill Co-operation of the
person whose behaviors rightly and politely with us. That was matter for pleasure to us.
In last I would like to say that “SUMUL, Surat” has bright future. I wish it
would make its name in all over India.
Thanks.

 www.sumuldairy.com
 www.indiadairy.com
 www.milkpalace.com

Summer Training Report at SUMUL - "SURAT DISTRICT CO-OPERATIVE MILK PRODUCER'S UNION LTD"

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Summer Training Report at SUMUL - "SURAT DISTRICT CO-OPERATIVE MILK PRODUCER'S UNION LTD"

Загружено:

Авторское право:

Доступные форматы

“SURAT DISTRICT CO-OPERATIVE MILK PRODUCERS’ UNION LTD”

SR.No. CONTENTS PAGE NO.

• Profile of the Company & Industry 2.

• Marketing Department 24.

• Human Resource Department 68.

• Production Department 90.

• Finance Department 121.

VIVEKANAND COLLEGE FOR B.B.A. 1

No. Contents Page no.

Chapter –1 PROFILE OF THE COMPANY & INDUSTRY 2

1.4 A glimpse picture of industry

1.5 Awards received by sumul

1.6 Milestone of Sumul Dairy

1.7 Objectives of Sumul Dairy

1.8 Sumul’s mission & vision statement

1.9 Work area of sumul

1.10 Unit of Sumul and Their Capacity

1.11 Turnover of sumul

1.12 Organizational Structure of SUMUL

1.13 Number of Departments in SUMUL

VIVEKANAND COLLEGE FOR B.B.A. 2

1.1 COMPANY OVERVIEW

Surat District Co-operative Milk Producers’ Union Ltd.

Address : Surat District Milk Producer’ Union Ltd.

Post Box No.-501,

PH: 2537693, 2538717, 2531666, 2531137

Bankers : The Surat District Co-operative Bank Ltd., Surat

State Bank of India, Surat

Sarvoday Sahakari Bank Ltd., Surat

Surat Nagrik Sahakari Bank Ltd, Surat

DENA Bank, Surat

I.C.I.C.I. Bank, Surat

Bank of India, Surat

H.D.F.C. Bank, Surat

VIVEKANAND COLLEGE FOR B.B.A. 3

1.) Shri Manubhai Amthabhai Patel

2.) Shri Sudambhai Raghunathbhai Patel

3.) Shri Pravinbhai Namlabhai Gamit

4.) Shri Arvindbhai Singabhai Gamit

5.) Shri Jayeshbhai Natvarbhai Patel

6.) Shri Jitendra Dhirajlal Desai

7.) Smt.Sumatiben Balavantrai Vashi

8.) Shri Manojbhai Naranbhai Patel

9.) Shri Shivabhai Babubhai Patel

10.) Shri Ramanbhai Ukadiyabhai Gamit

11.) Shri Bhupendrabhai Ratilal Desai

12.) Shri Arvindbhai Bhagvanjibhai Patel

VIVEKANAND COLLEGE FOR B.B.A. 4

13.) Shri Shantilal Kalyanjibhai Patel

14.) Shri Jaysingbhai Dungariyabhai Vasava

15.) The District Registrar,

16.) Shri P. Chellapa / Dr. G.P. Vijya

17.) Dr. S. T. Desai / Shri S.K. Bhalla

18.) Shri Jayesh Harshadbhai Desai

Date of registration: 22nd August, 1951

Auditors: Shree Special Auditor (milk) milk audit office, Surat.

Date of commissioning of Pasteurization Dairy Plan: March, 1968

Present capacity of Dairy Plant: 5, 00,000 liters per day

Milk Powder Drying capacity: 12.5 Mts. per day

VIVEKANAND COLLEGE FOR B.B.A. 5

Milk Chilling Plants along with capacity of Milk Chilling:

1 Sumul dairy 1951 5,00,000 591 0

2 Bajipura 1975 3,00,000 113 50