1VISAKHA DAIRY

A STUDY ON EMLOYEE WELFARE AND MEASURES AT

SRI VIJAYA VISAKHA DAIRY

VISAKHAPATNAM

A project report Submitted in Partial Fulfillment of

The Requirement for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by
SOBHA RANI. DUMPA
(H.T.No.2085410007)
HRM & MARKETING

Under the Guidance of

Mrs G.SUBHA., M.B.A..
Faculty in management studies

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

ADITYA INSTITUTE OF P.G STUDIES
(Approved by AICTE, Affiliated to AU, & Accredited by NBA)
Aditya Nagar, ADB Road, SURAMPALEM-533437
2008-10

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ADITYA INSTITUTE OF P.G.STUDIES

DEPARTMENT OF BUSINESS MANAGEMENT
(Approved By Aicte, Affiliated To AU, &Accredited By MBA)

Aditya Nagar, ADB Road, SURAMPALEM-533437

CERTIFICATE

This is to certify that the project entitled EMPLOYEE WELFARE AND

MEASURES is the bonafide work done by Miss.SOBHA RANI.DUMPA, during the
period 2008-10 in partial fulfillment of the requirement for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION IN ADITYA INSTITUTE OF P.G.
STUDIES affiliated to AU.

PROJECT GUIDE:

HEAD OF THE DEPARTMENT

Mrs. G.SUBHA

Mr. J.NAGENDRA KUMAR

Faculty in Management Studies,

Department of MBA

Department of MBA

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DECLARATION OF THE STUDENT

I hereby declare that the project report entitled EMPLOYEE WELFARE AND
MEASURES submitted for the degree of Master of Business Administration is my
original work and has not formed the basis for the award of any degree, diploma,
associate ship, fellowship (or) similar other titles. It has not been submitted to any other
University or Institution for the award of M.B.A.

Place : KAKINADA
Date:

(SOBHA RANI.DUMPA)
Regd. No. 20854100007

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ACKNOWLEDGEMENTS
I should take the responsibility to acknowledge the following
distinguished personalities who graciously allowed me to carry out this project work
successively.
I am very much thankful to Mr. J.NAGENDRA KUMAR, M.B.A, and
Head of the department of management studies. I am also thankful to all other members
of the staff for their kind cooperation in this behalf.
I am highly thankful to my guide Mrs. G.SUBHA madam, M.B.A, Assistant
Professor for her valuable advices and encouragement throughout the course.
I express my deep sense of gratitude to Ch. Vijaya Rao (sr.general
manager) for his kind help and valuable suggestions in preparing this project and also to
office staff members.
I also express my sincere thanks to my friends and classmates for their
advice and suggestions in giving a proper shape to study.

(SOBHA RANI.DUMPA)

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CONTENT
CHAPTER 1
INTRODUCTION
NEED OF STUDY
OBJECTIVES
SCOPE
METHODOLOGY

CHAPTER 2

INDUSTRIAL PROFILE

CHAPTER 3

COMPANY PROFILE

CHAPTER 4
THEORETICAL FRAME WORK
EMPLOYEE WELFARE AND MEASURES

CHAPTER 5
GRAPH ANALYSIS AND INTERPRETATION

CHAPTER 6
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FINDINGS
SUGGESTIONS

CHAPTER 7
ANNEXURE
BIBILOGRAPHY

CHAPTER -I

INTRODUTION

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INTRODUCTION
EMPLOYEE WELFARE
Welfare is the broad concept referring to a state of living of an individual or group in a
desirable relationship with the total environment like ecological economic and social
labor welfare includes both social and economic contents of the welfare. Social welfare is
primarily concerned with the solutions of various problems of the workers sections of the
society. The objective of economic welfare is to promote economic development by
increasing production and productivity through equitable distribution. Labor welfare is
the part of social welfare conceptually and operationally, it covers concentration and
development of human resource.

CONCEPT
The concept of labour welfare implies the setting up of minimum desirable standards
and the provision for of the facilities like health, road, clothing, housing, medical,
assistance, education, insurance, job security, recreation such facilities enable the worker
and his family to lead a good work life, family life and the social life. Labour welfare

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also operates to neutralize life and social life from the harmful effects of the large scale
industrialization and the urbanization.

DEFINITIONS
Royal commission on labour qualities defines the labour welfare as one must
necessarily elastic being a some what different interpretation in one country from another
country according to the different social customs, the degree of industrialization and the
educational development of the workers.

ILO says labour welfare is such services, facilities and the amenities established either
outside or in the vicinity of undertaking to enable the worker to perform their work in
healthy land, congenial surrounding and to provide them with amenities conductive to
good health and high morale

NEED FOR THE STUDY

Welfare is a very wide one and is more or less synonymous with the conditions of
work as a whole. It may include not only the minimum standard of hygiene and safety
laid down in general labour legislation, but such aspects of working life as social

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insurance schemes, measures for the protection of women and young workers, limitation
of work and paid vacations. In other cases, the definition is much more limited, and
welfare, in addition to the general physical working conditions. It is mainly concerned
with the day to day problems of the workers and the social relationships at the place of
the work.
As the subject of welfare facilities is a very broad one covering a wide field of
amenities, limits cannot be rigidly laid down regarding its scope for all times. In the final
analysis, labour welfare services should include all extra-mural and intra-mural welfare
work, statutory and non statutory welfare facilities undertaken by the employers,
Government, Trade unions or voluntary organizations and also social security measures
which contribute to workers welfare such as industrial health, insurance, provident fund,
gratuity, maternity benefits, workmens compensation, retirement benefits and so on.
More specifically, we may examine the ways in which labour welfare is classified in
order to obtain a clear understanding of its scope. Labour welfare work can be broadly
divided into two categories, statutory and non statutory or voluntary.
Statutory welfare consists of those provisions of welfare work, which depend for
their implementation on the coercive power of the Government. The Government enacts
certain rules of labour welfare to enforce minimum standards of health and safety of
workers. The employers are required by law to fulfill statutory obligation on welfare.

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THE OBJECTIVES OF THE STUDY

To understand the extent to which the welfare measures provided by visakha dairy
towards their employees.
To know the level of awareness of the employee about the various welfare
measures provided to them.
To study how the welfare facilities provided helps in increasing the productivity
and the job satisfaction.
To learn how welfare services provided to employees help organization to built up
a stable work force by reducing absenteeism and the labour turnover
To offer useful suggestions for improving the effectives of welfare measures.
To know about the promotional facilities in the company
To know how much the management supporting the employees, and to know the
treatment of superiors towards subordinates.

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METHODOLOGY
The data collected through two sources i.e., primary and secondary sources
of information. Primary data and information is obtained from the officers of the human
resources department through interaction with them.
Information pertaining to programs organized over a period will be
obtained by way of referring to record of the statistical departments, personnel
departments and training and development departments. In house magazines,
journals, news papers, any other published materials will be referring to in collection
of necessary data.

PRIMARY SOURCE

The primary source of data is applied for getting the required and relevant
information directly from the department heads and in the course of discussion with
the executives. The following are the data collected through primary sources.
Types of welfare measures provided under visakha dairy.
Refreshment courses conducted in the technical institute.

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About the course covered through discussion with the employees and through
questionnaires.

SECONDARY SOURCE
The secondary source of data is collected through records and files from the
administrative building of the visakha dairy and from the institutional guide and the
staff belonging to administration provided necessary information.

LIMITATIONS
Time was the major constraint as the mentioned period was not enough to
collect the data in detail
Survey was done with the employee size of 40 as the employees of the
company work in shift

The collected information is mainly depending on the interviews, survey

findings and from reports only.

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CHAPTER - II

INDUSTRY PROFILE

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INDUSTRY PROFILE

Introduction
Milk is the food, which contains vitamins, proteins, fats and carbohydrates. Every
human being consumes milk atone time or more. World Health Organization suggests
that the infants should be fed compulsorily with mother milk, because it provides all the
necessary fats, proteins, etc., which is essential for the growth of the baby. If mother feed
is not available they suggest animal milk, this shows what major role milk is laying in our
daily life.
India is the second highly populated country and is about to occupy the first
position in producing milk. In India the major source of income is Agriculture. Dairying
is one of the best instruments for bringing up the socio-economic development of the
country. Developing countries like India rural people depend on agricultural income like
farming, dairying etc, and The Indian dairy industry is expected to retain for its
indigenous character for a long time because of consumer tastes for articles of food so far
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delicacies are concerned.

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Dairy development in India has been most spectacular in recent years, while
chief contributing factor to this achievement is the Anand pattern of dairy cooperatives.
No less creditable has been a concerned effort of the national dairy development and the
Indian dairy development. These two institutions have been responsible for the dairy
development in India since 1970. Dairying is considered as a whole when it contains
elements like production, procurement and marketing Kaira District Co-operative Milk
Producers Union Limited adopted this integrated approach. This integrated approach in
dairying is proved to be successful with AMUL and later this integrated approach is come
to be known as ANAND PATTERN OF DAIRY CO-OPERATIVES.

Importance of Milk

Milk as we all know is a mixture of a variety of nutrients. Milk is a

polysaccharide constitute of our food. Milk on digestion gives glucose and lactose
Milk ------------- glucose + lactose
We all know that our body does eventually stop growing outwardly, but our
bones and tissues dont. They are constantly being renewed. In fact bones are alive and
they need constant supply of calcium and other nutrients in order to be strong.
Milk provides at least 14 other important nutrients, all performing different and
important functions. As part of a well balanced diet milk and other milk products are
important through out our life.
As we grow into adulthood, we tend to consume less and less of milk. In todays
market place, where there is a bewildering array of milk products, there is a milk product

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S.no

Milk beverage

Fat

Total calories

1
2
3
4
5
6
7

(1cup=80z=250 ml)
Whole milk
2%
1%
Skim
Bmilk
Chocolate partly skimmed ( 2 % )
Dry,skim,instant(25g)

(grams)
9
6
3
Trace
2
5
trace

157
120
108
91
105
189
91

for almost every one. Once consuming cows milk, infants under one year should stock to
whole milk for the growth and energy needs.

--

RAJASTHAN DAIRY TURNOVER UP

The Rajasthan Co-operative Dairy Federation Limited (RCDFL) has recorded a
turnover of Rs.159 crores during 1996-97, a 49% increase over previous fiscal Rs.109
crores. Profitability too increased. Nine unions posted cash profit, size of that earned a
net profit for 1996-97 where as in 1993-94 only four unions earned cash profit with a
single union producing a net profit.

MILK IN VARIOUS PARTS OF INDIA

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MILK TESTING CAMPAIGN IN JAIPUR

Consumers of loose milk in Jaipur are cheated to tune of Rs.26 crores every year
by way of adulteration of water in the milk.
Milk testing campaign popularly known as Doodh ka Doodh pani ka pani
was organized from 15th June, 1996 to 30th June 1996 covering prime localities of Jaipur
city.
More than 600 milk samples were tested in the presence of consumers and they
were simultaneously briefed about the importance of SNF in milk. Detailed analysis that
only 19% of the samples were unadulterated and remaining 81% samples were containing
water percentage ranging from 10% to 40%. It was also observed that almost 66,000
liters of water was being sold in disguised of milk valuing to 7.2 lakhs per day. Gujarat
milk co-operative sets export house status.
The Gujarat Co-operative Milk Marketing Federation Limited (GCMMF)
known from its Amul brand milk products reported an 11% increase in its export turnover
during the financial year ended march 1997 (from Rs.18.7 crores to Rs.20.5 crores) and it
has been accorded the export house status.
It reported a 24% growth and sales figure reached Rs.1382 crores to Rs.1107
crores. Amul dairy with a yearly turnover of Rs.380 crores and daily payment of Rs.70
lakh to 5.51 lakh members in 962 villages celebrates amulutsav in its 50th year.

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GOA TO PROMOTE DAIRY INDUSTRY

Goa Government is now focusing its efforts on the promoting dairy farming in the
state. A subsidy of 25% up to Rs.25 lakh on the investment is provided, giving this sector
the status of industry. Enhanced production will reduce Goas dependence on imports of
milk from neighboring states. Over 45000 liters milk comes into the state daily from
dairies in the other states as local unions produce barely 50000 liters of milk per day.

ANDHRA PRADESH FEDERATIONS STRIVING TO STAY

AFLOAT

Andhra Pradesh, which set an enviable record in the growth of the dairy products
and in the launching of operation flood in the three decades prior to 1991, appears to be
heading for the decline in its position.
Experts have analyzed the causes of the regressing but corrective measures, which
should have been initiated, are still a long way off. The Andhra Pradesh Dairy
Development Co-operative Federation (APDDCF), which has major stake in the dairy
industry, is gripping with the situation to find a durable solution.
Poor utilization of infrastructure facilities and inability to take time measures to
tackle competition from private dairies had proved costly for the APDDCF whose debt
equity ratio stands at 1:1.36. The APDDCF has an installed capacity of 23.87 lakh liters

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per day with 66 milk chilling centers, 7 factories, 2 major Dairies and 10 district unions.
It has 5683 milk co-operative societies with an enrollment financial assistance up to
Rs.35.48 crores of which Rs.26.1 crores came from plan fund, of the total share capital of
Rs.28.58 crores, the Government share is Rs.18.18 crores.
In Andhra Pradesh procurement is mostly of buffalo milk, is subject to seasonal
flections. Despite the uncertainties, things went off weal for the federation but
liberalization policy of the central Government has boosted the entire of private
enterprises in the dairy sector which has resulted in deep cuts in the procurement of milk
by APDDCF.
Low productivity of the milk cattle in the state and inadequate measure to upgrade
the cattle has also resulted in milk procurement. This situation had cascading effect on
the manufacture of the milk products and the capacity had come down from 50% in
1993-94 to 43% in 1995-96. Production of milk products fell by 29% in 1995 compared
to the previous year. Of the 10 district unions, the finances of the Godavari district cooperative milk producers union and that the Cudapah have become so poor that it has
been decided to liquidate the two unions. However, the unions of the east and west
Godavari districts for better viability and management. The Poddutur milk union because
of its heavy losses amounting to 13 crores, including 80 lakh which was to go as arrears
to the farmers, has been divided to be liquidate. In spite of the steep reduction in the
procurement of milk, the federation was able to maintain its sales turnover at Rs.6.5 lakh
per day.
The federation has not been able to raise the selling price of milk in proportions to
raise in procurement costs. The cost of man power per liter of milk increased from

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Rs.1.33 in 1994-95 to Rs.1.72 in 1995-96 and to Rs.2.12 in 1996-97. The total liability of
the federation to NDDB stood at Rs.154.26crores. The federation has availed a loan of
Rs.8.03crores from the National Co-operative Development Corporation to take up
integrated dairy development in the non-operation flood areas of Telengana region
through the objective of the federation has shifted from social responsibility to the
commercial viability, it has to maintain a balance between the two, despite the high
operational costs and low capacity utilization. In the organized sector in A.P 11 private
units have been registered with an installed capacity of 8.67lakh liters per day. In addition
about 35 private units with a capacity less than 10000 liters per day have sprung up.
Frequent reports on contaminations of milk and milk products have promoted
officials of the health department and U.P to launch surprise inspection of dairies across
towards complaints of adulteration in packed milk based products. A special team of
health officers was sent from Allahabad and Lucknow to raid dairies at various places
follow in reports of harmful chemical urea being mixed in milk and milk based products.

PRIVATE DAIRIES SEEK IN TO KARNATAKA

The Karnataka state Government has received private organization heritage,
vintage and Niligiries to manufacture milk products and pasteurize milk. While the state
Government does not have nor issued dormer to any of the 4 organizations, their
complaints against private dairies had violated norms in milk pasteurization. Minister of
animal husbandry Mr.Ningaiah said necessary action would be taken and also stated that
the Karnataka milk federation would be protected from the danger posts by and private
dairies.

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MILK TO REPLACE LIQUOR IN HARYANA

In order to cover up losses arising out of Government policy liquor prohibition,
the Haryana tourism corporation plans to convert liquor hares at various resorts into milk
bars. While final plans are yet to be formulated, sale of various products like lassi, ice
creams would be undertaken.

STRESS ON REITALIZATION OF CO-OPERATIVES

There is an urgent need to revitalize the milk co-operatives in the wake of past
liberalization era which has the mushrooms of the large number of private sector dealers
all over India. The state have been instructed by the Government and Co-operative owner
dairies tightened their quality testing mechanism that stern action would be taken against
those indulging in adultering of milk and sale of such milk which is a punishable offence
under the provisions of prevention of food adulteration rules 1995

FINANCE FOR HI-TECH STERILIZATION

Government of India and France had finalized a protocol under which a loan of
47.7million Frances is being extended to dairy sector in the country this year. Of this,
27.7 million France had gave to NDDB and the ret 20 million francs i.e., 14crores
roughly to APDDCF for purchase and installation of high temperature short time
sterilization machine. The new machine in contract to the ultra treatment plant under

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operation and APDDCF unit will process milk for keeping it in plastic containers for at
least 6 months to 1 year. At present such milk is made available in tetra packs lasting
only 3 months. The purchase of the machine followed a visit of an official team of A.P to
the France in 1995 when an understanding was arrived at for technology transfer. The
machine would have capacity to give out 50000 liters per day and the new milk packets
will be made available by the next march.

INTERNATIONAL SCENARIO OF DAIRY INDUSTRY

LIQUID MILK MARKET

Average 14 billion of milk was produced every year in UK, 73 million tons in USA
and Indias production is around 75 million tons. Half of the total production of milk is
used for manufacturing other products. In UK the liquid milk sales has seen a decline
since the previous 10 years.

Since 1980 more then 90% of milk was purchased from the milkman. By 1980 this
declined to 89%, in 1985 to 81.9%, in 1990 to 68.3% and by 1995 delivery accounted for
44.5% of all milk purchased. Sales in supermarkets and small shops increased in relation
to the decline in doorstep share. The information collected on international; scenario was
achieved from the internet and it was updated to the current year.

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CONTAINERS
36% of all the house hold milk sold in England, Scotland and Wales is sold in
glass bottles, with plastic containers claming 50% of the market and cartons the
remaining 14%. Virtually all milk sold in glass bottles is sold in doorstep delivery while
disposable packaging accounts for almost all shop sales.
Major types of milk available internationally are

S.no

Type of milk

Energy value

Fat content (%)

(calories)

Whole milk

487

6.0

Toned milk

387

3.0

Low fat milk

270

1.0

Skimmed milk

194

0.1
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Homogenized milk

All fat is spread

evenly

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INDIAN SCENARIO OF DAIRY INDUSTRY

The main stay in Indian farmers has been agriculture and allied occupations, farm
animals especially cattle have been an integral part of rural India for thousands of years.
During the year 1920 military farms were established to supply adequate raw milk to the
stations. These were walls maintained and improved.
In 1946 the first farmers integrated dairy co-operative was established in kaira
district as Anand which later came to be known as Amul. Amul and Greater milk
scheme set together a faster pace of dairy developed with emphasis on developed
techniques of processing and marketing under Indian conditions.

INSTITUTIONAL SUPPORT TO CO-OPERATIVE DAIRYING

Indian Dairy Corporation:
The Indian dairy corporation (IDC) was set up under companies act on 13th
February 1970. It is a Government of India undertaking. The immediate need to setup
IDC was to handle the popularly known operation flood.
India has emerged as the worlds top dairy nation with milk production crossing
75 million tons in 1997-98. It is placed second in the milk production when compared to
the USA. The Indian dairy industry production is estimated to have risen from a low of
20 million tons to 75 million tons
Though our country has 25% of the total world agriculture animals, yet the production
of milk is only 6.5% of the world programme. India is the second largest populated
country and the consumption of milk is also high. In order to meet the requirements of

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the people the operation flood programmed was developed. In every 5 year plan emphasis
is even given to agriculture also which includes farming, dairying etc. In India the state in
which the production milk is high in Gujarat.
It is estimated that the per capita consumption of every Indian is 118 grams but
the minimum requirement for good health is 210 grams per day. It is also estimated that
the consumption would be 64.40 million tons in this year. Therefore, it is necessary to
develop dairy farming in India.

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CHAPTER- III

COMPANY PROFILE

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COMPANY PROFILE

MISSION STATEMENT OF VISAKHA DIARY

Visakha Dairy is committed to enhance the milk procurement through technical
inputs by providing quality services to our member producers by ensuring economic
viability to improve socio economic conditions of our members. Visakha Dairy is also
committed to supply quality milk and milk products to consumers. The dairy shall
become top dairy in the country with its inspired team of employees.

QUALITY POLICY
Visakha dairy endeavors to be one of the best processors of milk and the
manufacturers of milk products in India. We are committed to provide hygienic, safe and
nutritious products to achieve customer satisfaction and in turn improve the economy of
our member produces. To this effect the management is committed to implement,
maintain and continually improve the quality and food safety (HACCP) system in dairy

ORIGIN AND HISTORY OF VISAKHA DAIRY

Visakha dairy is located on NH5 opposite to BHPV at Visakhapatnam on the
road from Visakhapatnam to Gajuwaka. The dairy complex includes dairy plant, aseptic
packaging station, markets, procurement and input, effluent treatment plant, electrical sub
station, administration office, staff canteen and the residential quarters.

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The milk shed of srivijayavisakha dairy, Visakhapatnam comprises of

Srikakulam, Vizianagaram and Visakhapatnam districts in the north coastal Andhra
Pradesh. These three districts are considered to be backward for agricultural development
as assured irrigation facilities are very limited. Therefore the rural farmers, mostly
belonging to small and marginal categories and depend on dairying to supplement their
income from other sources for livelihood.
The Government after considering dairying as one of the instruments for bringing
socio economic development in the rural areas has started a dairy with handling capacity
of 10000 liters per day in Visakhapatnam in 1996. The dairy was registered under
cooperative act in 1973. After observing the success of the small dairy, the present new
dairy was constructed with handling capacity of 50000 liters with an estimated cost of
Rs.1.37crores wit the assistance from NCDC, New Delhi and was commissioned in the
year 1977. Since then milk production and the procurement started increasing year by
year by leaps and bounds. Thanks to the vision and foresight of the founders, the
visakhadairy, which had milk procurement operations in 50 villages in Visakhapatnam
district in 1977, is now covering 2744 villages in three districts serving 207925 milk
producers. This dairy is converted to mutually aid cooperative act, 1995 with effect from
08.07.1999 and its name is changed as SriVijayaVisakha District Milk Producers
Mutually Aided Cooperative Union. This dairy is converted to company act, 1956 with
effect from 06.01.2006 and its name is changed as SriVijayaVisakha Milk Producers
Company Limited. The production and procurement started increasing year by year with
more participation of rural farmers. The handling capacity of visakha dairy has been
enhanced time to time as stated below.

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1986-87
1989-90
1991-92
2000-01
2002-03

50000 100000 liters per day

100000 150000 liters per day
150000 200000 liters per day
200000 300000 liters per day
300000 500000 liters per day

OBJECTIVE OF VISAKHA DAIRY

The main objective of the visakha dairy is to serve farmers and to give help to
their economic development, and to provide quality milk and milk products to the
consumers.

UNIQUE ACHIEVEMENTS
Visakha Dairy produces many Milk Products to cater to the consumer needs. It
supplies quality milk of different variants round the clock through its 1500 exclusive
outlets and became dearer to the consumers because of the quality and purity. Visakha
Dairy's name has become synonymous with quality

Started Dairy with as handling capacity of 10000 LPD (Lts. Per Day) operations
1966 in Visakhapatnam.
1973 Union registered under cooperatives Act.
1977 - Inauguration of 50000 LPD Visakha Cooperative Modern Dairy. By Sri.Jalagam
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1980 -

Vengala Rao Chief Minister of AP.

Inauguration of 25000 LPD MCC (Milk Chilling Center) at Narasipatnam.
Joined as member of the AP Dairy Development Coop Federation Ltd. At AP

1981 level.
Operation area of the Union extended to Srikakulam and Vizainagaram districts
1982 - and the name changed to Sri Vijaya Visakha District Cooperative Milk producers
Limited.
MCC Srikakulam merged with Visakha Coop Dairy & capacity expanded from
1985 1986 1987 -

12000 to 20000 LPD.

Expansion 50000 to 100000 LPD.
NMG (National Milk Grid) milk sales started.
Expansion plant 100000 to 150000 liters per day. Establishment of milk

1989 1991 1996 1998 -

producers & employees education, health and medical welfare trust.

Expansion of 150000 to 200000 LPD.
Inauguration of 30000 LPD chilling center at Vizianagaram.
Inauguration of 13 MT powder plant at Visakhapatnam.
Converted to Mutually Aided Cooperative Act95. Name also changed as Sri

1999 -

Vijaya Visakha District Milk Producers Mutually Aided Cooperative Union

Limited
Dairy expansion 200000 to 300000 LPD Commenced milk procurement in East

2000 Godavari District Commissioning of milk packing station at MCC Kakinada

Inauguration of Aseptic packing station (APS) Commissioning of milk packing
2001 station at Hyderabad & sales started at Rajahmundary & Hyderabad.
Dairy expansion 300000 to 500000 LPD Inauguration of milk pouch packaging
2002 2003 -

station.
ISO 9001:2000 & HACCP certification.
Up gradation of HACCP to revised standard.

2004 Converted to Company Act56. Name also changed as Sri Vijaya Visakha Milk
2006 Producers Company Limited
2008 - Inauguration of Aseptic packing station (APS) with New Tetra pack A1 Machine

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Visakha dairy stands second in milk procurement and sales after Anand dairy

Visakha dairy is the market leader in coastal Andhra Pradesh. Visakha dairy is the
leader in milk industry and got a very high market share of about 75%.

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FUNCTIONAL PROFILE

PLANT AND PROCESSING FACILITIES

Visakha dairy, Visakhapatnam
s.no
Name of the facility
1
Plant capacity
2
Milk storage space
3
Reconstitution
4
Milk packing
5
Milk cold storage
6
APS
7
Cream pasteurization
8
Butter manufacturing
9
Ghee manufacturing
10
Butter deepfreeze
11
Milk drying
12
SMP packing (1kg / kg / 200 gr)
13
Sterilized flavored milk

Capacity
5lakh lt/day
7.19lakh lt/day
1.25 MT/hr
5.5lakh lt/day
1.5lakh lt
1.0lakh lt/day
0.9lakh lt/day
60 MT/day
12 MT/day
850 MT
13 MT/ day
600 kg/hr(not packing)
1000 bottles/
batch(14

14
15
16
17
18
19

batches/day)
0.36lakh lt/day
0.36lakh lt/day
1.3lakh cups/day
1lakh lt
330 TR
4tones*2 no.

Butter milk
Curd milk pasteurizer
Curd cups filling and sealing
Products cold storage
Refrigeration plant
Boilers 1.coal fired

3tones*2 no.

20

2. oil fired

2tones*1no.

Electricity maximum demand generators

1600 KV A
500KV *3 no.
250KV*1 no.

21

Water
1. UGR

1460 KL

2. Softeners

800 KL

34

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VISAKHA DIARY

22

23

3. UV treatment
Air

40500 LPH

1.Compressor

1120 CFN

2. Drier
ETP (anaerobic forward to aeration)

190 CF
1000 M3

Statement showing the details of different activities of Visakha dairy

as on march 2009

No. of societies

886

No. of women societies

67

No. of MPACs

1791

No. milk chilling centers

No. of feed mixing plants

dairy training centers

35

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VISAKHA DIARY

No. of bulk cooling routes

84

No. of milk collection routes

50

No. of veterinary first aid centers

661

10

No. of emergency veterinary routes

19

11

No. of producers in societies

179146

12

No. of women members

33245

13

No. of animals vaccinated

45000

14

No. of cattle insured

27124

43

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VISAKHA DIARY

MILK PROCUREMENT

This dairy is procuring milk through a network of 886 primary milk producers
cooperatives and 1794 unregistered centers. The average daily procurement of this dairy
during 2007-08 is 384620 liters per day and during 2008-09 up to February 2009 is
450353 liters per day and as on the date the present procurement is 444017 liters per day.
The peak quantity touched during the year 2007-08 is 428746 liters. This is another vital
technical input activity implemented with long vision to improve the milk procurement
apart from procuring the day to day available surplus.

MILK CHILLING CENTERS

S.no
1
2
3
4
5
6

Name of the center

MCC Narsipatnam
MCC Vizainagaram
MCCRambadrapuram
MCC Srikakulam
MCC Tuni
MCC Kakinada

district
Visakhapatnam
Vizainagaram
Vizainagaram
Srikakulam
East Godavari
East Godavari

capacity
50000
30000
30000
50000
30000
50000

BULK COOLING CENTERS

43

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VISAKHA DIARY

With a view to stand stiff in the global competition, Visakha dairy on the quality
front, installed 81 bulk cooling centers. Extension services are provided to educate and
help the milk producers in clean milk production, animal health and productivity
s.no

District

No. of bulk cooling centers

Visakhapatnam

41

Vizainagaram

Srikakulam

10

East Godavari

20

Hyderabad

OBJECTIVES

The quantity of milk will be maintained by restricting the transits time.

There is time saving for the farmers in supply of milk to their respective village
milk collection centers both AM and PM.
The weighting and testing of milk will be done in the presence of the
representative who brings milk to the bulk cooling points.
The expenditure involved in transport of milk both times will be reduced by 50%
by collecting milk once in a day through milk tankers.
43

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VISAKHA DIARY

LAST TEN YEARS STATISTICAL INFORMATION OF PROCUREMENT &

Financial Year
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08

LIQUID MILK SALES

Procurement (Lts in Lakh)
472.78
536.52
689.52
715.40
708.32
769.71
995.71
1112.29
1165.54
1,231.50
1,440.59
1401.76
1407.71

Milk Sales (Lts in Lakh)

439.78
459.47
508.56
506.34
558.17
579.87
611.63
739.17
851.99
1025.53
1168.20
1376.70
1426.84

43

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VISAKHA DIARY

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VISAKHA DIARY

FINANCE AND ACCOUNT

The financial operations of the Issaquah cooperative dairy, Visakhapatnam has been
increasing with a remarkable growth rate year by year since 1995-96. The turnover had
increased from Rs.63.00crores to Rs.277.00crores in 2005-06. For glance the year wise
financial performance is stated below.

Year
1995-96
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
2003-04
2004-05
2005-08
2006-07

Turnover (crores)
63.34
78.70
95.02
114.31
121.01
123.40
151.45
181.14
211.11
234.13
277.86
296.21

43

41

42VISAKHA DAIRY

PERSONAL

MAN POWER CHART

Visakha dairy consists of four kinds of employees

Company employees
Agreement based employee
64 scale
Contract labour

Company employees are recruited and selected by the company without the involvement
of the government.

Agreement based employees are taken into the organization based on the agreement when
ever required.

64 scale employees are the employees selected by the Government. These are the
permanent employees in the organization.

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VISAKHA DIARY

Contract labours are the workers taken into the organization whenever there is a
requirement in the plant. Contract labour work along with the company workers in the
plant.

ORGANISATIONAL STRUCTURE

Board Of Management

Managing Director

Field
Operations

Plant &
Projects

Production
Engineers

Market
ing

Finance
&
Account
ss

Engineering
&
Maintenance

Persona
l&
Admin

APS

Purchase
& Stores

Quality
&
Control

MIS

Civil
&
Project

Board

Despatch

43

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VISAKHA DIARY

Departments
Production
Dispatch
Quality control
Engineering and maintenance
Security
Purchase
Stores
Personnel and administration
Finance
Civil
Aseptic packing section
Sales
Field operations wing
MIS
Board
Contract labour
Piece rate workers
Luggage labour
Security

no. of employees
159
110
47
162
7
12
17
38
29
15
67
41
31
16
2
300
80(approx.)
50 (approx.)
50(approx.)

43

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VISAKHA DIARY

MARKETING
Visakha dairy is marketing milk under visakha dairy brand in
Visakhapatnam, Vizainagaram, Srikakulam, East Godavari, West Godavari and
Khammam districts and in the twin cities of Hyderabad and Secunderabad,
Bherampuram, Rayagada and Jaipur through a wide network of 100 milk distribution
routes, about 3000 retail points and 60 round the clock milk parlours.
During the year 2007-08, average milk sale per day is 390914.04 liters of
this 98% is in sachets and the rest 2% in cans. 5 variants of milk namely homogenized
milk, homogenized double toned milk, toned milk and full cream milk is supplied
through retail points either on advance payment by issuing monthly milk cards or on
day to day cash and carry system or on credit depending on the customers need, credit
worthiness, price and feasibility duly taking into account competition from other
players in the market. Statement of the sale proceeds dues to be received as on
31.03.2007 is enclosed for reference.
To ensure extensiveness availability of milk with in the reach of the
consumers and intensive coverage of market, visakha dairy has established wide milk
distribution and sales network by appointing about 3000 retailers. Visakha dairy milk
retailers have to deposit two days sale value of milk as security deposit at the time of
appointment and have to remit the sale proceeds on day to day basis for the quality of
milk supplied each day.
The average daily sales of this dairy during 2007-08 is 390914.04 liters per43
day, and during 2008-09 up to February 2009 is 411530.0 liters per day.

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VISAKHA DIARY

PRODUCTS MARKETING
Visakha dairy markets wide variety of milk products through its own network of
super markets and retailers in Visakhapatnam, Vizainagaram, Srikakulam, Eat
Godavari, West Godavari and Krishna district and twin cities of Hyderabad and
Secunderabad and through m/s Matha federation in the rest of Andhra Pradesh and
outside Andhra Pradesh. Products are supplied to market strictly on cash and carry
business.

DISTRIBUTION NETWORK

Total number of routes

Total number of booths
Number of booths having refrigerators
Total number of booths with ice boxes
Roadside booths
Parlours
Milk products retail outlets

36
1650
650
350
650
425
1800

CHANNELS OF DISTRIBUTION
MILK

46

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VISAKHA DIARY

VCD retailer / agent consumer

MILK PRODUCTS
VCD stockiest retailer consumer.

BOOTH MANAGEMENT PROGRAMME

At present around 30 to 35 milk booth comprises a single route and about 4 to

6 routes comprises a none/ city office area.
Each city office is monitored by a city office incharge and under him the route
supervisor and the business development supervisors work.
A route / business development supervisor monitors all the booth agents.
The division of marketing field activities into the city officers in proved to
strengthen their marketing activities on the whole and it helped in
development of sales.
Further meeting with the commission agents are organized route wise zone
wise regularly to develop them in terms of working capital management and
inter personal communications.

Visakha dairy is encouraging the booth agents with monetary and non
monetary benefits.
43
Incentives are being passed onto the supervision on achievement of targets.
Targets will be fixed at the rate of 10% increase of the previous year particular
month sales.

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VISAKHA DIARY

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VISAKHA DIARY

CHAPTER IV

THEORETICAL
FRAME WORK

43

CONCEPT OF EMPLOYEE WELFARE

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VISAKHA DIARY

The directive principles of state policy in our constitution refer generally to

the promotion of the welfare of the people. In its specific application to the working
class, securing just and humane conditions of work has been highlighted, but what
these actually imply cannot be specified in rigid terms for times. The Indian Labour
Organization defined labour welfare as such services, facilities and amenities such as
adequate canteens, rest rooms, recreational facilities, arrangements for travel to work
and for the accommodation of workers employed at a distance from their houses and
such other services,

amenities and facilities contribute to improvements in the

conditions under which workers are employed.

The committee of exerts on welfare facilities for industrial workers conveyed
by the Indian labour court in 1963 divided welfare services into two groups
A. with in the precincts of the establishment
B. outside the establishment

WELFARE AND AMENITIES WITH IN THE ESTABLISHMENT

It is the employers responsibility to provide facilities within the precincts
of the establishment. This has also been the underlying principle of the policy adopted
by the Government. For many components of such welfare, legislation in the country
has set certain minimum standards. Improvements upon them been left to the
employers.
The facilities with in the precincts of the establishment are regulated by the
factories act, 1948, the plantation act 1951, and the mines act, 1952. The factories act43
also requires the factories employing five hundred of more workers to be appointed a
labour welfare officer to look after the welfare of the workers. State Governments

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VISAKHA DIARY

have been empowered to frame rules to prescribed standard and to grant exemptions,
where considered necessary. They laid down elaborate standards for all welfare
amenities, keeping in view mainly the requirements of all workers.

FUNCTIONS OF EMPLOYEE WELFARE

CONDITIONS OF WORK ENVIRONMENT

1. Working conditions:
(a) Temperature (b) ventilation (c) lighting (d) dust, smoke, fumes and gases (e) noise (f)
humidity (g) posture simple (h) hazard and safe water disposal (drainage) (i) provision
for proper bathing and washing facilities.
2. Factory sanitation and cleanliness:
(a) Provision of urinals in factory (b) provision of spittoons (c) provision for the disposal
of waste and rubbish (d) provision for water disposal (drainage) (e) provision for proper
bathing and washing facilities (f) cleanliness, white washing and repair of buildings and
workshops (g) care and maintenance of open spaces, gardens, roads etc.

EMPLOYEE HEALH SERVICES

1. Factories health services:
(a) Medical examination of employees (b) Factory dispensary and clinic treatment (c) First
aid facility (d) Treatment of accidents (e) Health, education and research.

2. Workers education:

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VISAKHA DIARY

(a) Education to improve skills and earning capacity (b) Literacy (c) Library, audio visual
education, lecture programmers (d) Workers educational scheme.
3. Economic services:
(a) Employees co-operative societies (b) grain shops and fair price scheme and its working.
4. Housing for employees and community services.
5. Study of the working of welfare acts:
(a) Factories act (b) Employees state insurance act; (c) minimum wages act.
6. Social work in industrial setting
(a) Family planning (b) Employee counseling

SAFETY MEASURES

EMPLOYEE SAFETY
Since the beginning of the present century, employee safety and health problems at
work have been engaging attention of the psychologists, sociologists and industrial
engineers. Psychologists are concerned with the theoretical considerations of accident
causation and the research into accident control, through proper selection, training and
education of the employee; and the social and psychological factors that influenced the
individuals behaviour in general. Engineers and safety officers usually render necessary
practical advice on creation aspect of safety in industry. They look upon prevention of
accidents basically as an engineered problem to be tackled through proper designing of43
mechanical safety devices. In fact, accident prevention and safety are interrelated and
therefore, required a multi dimensional approach. Its importance has increased because of

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VISAKHA DIARY

large scale industrialization in which human being are subject to mechanical, chemical,
electrical and radiation hazards, besides modern industry is characterized by complicated
mechanisms, intricate job requirements and fat moving production lines. One of the
important consequences of all this is increased dangers to human life through accidents.

SAFETY WHOS RESPONSIBLITY

Safety is primarily the responsibility of the management. This responsibility should

rest on the shoulders of all cadres of management, such as plant manager, production
manager, chief engineer, personal manager, maintenance engineer, individual foremen
safety officer or director.
Every organization should formulate and implement a safety policy. The procedure
to be adopted naturally depends upon the size of a company, the number of plant operators,
the nature of the industry in which it is engaged, the production technology uses, and the
attitude of the top management. After it has spelt out its safety policy, a company should
establish a safety programme, the primary goals of which should be reduce the number of
hazardous factors which are likely to cause accidents, and develop safe working habits
among its employees.

43

SAFETY ORGANISATION

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VISAKHA DIARY

A safety organization and safety committee is setup by an organization. The following

facts should be given due consideration in any safety organization programme:
(a) Safety programs must have top management approval. Sanction and support.
(b) Responsibility for safety must rest with the supervisory personnel.
(c) Provision must be made for prompt action in the elimination of mechanical and
personnel hazards.
(d) Safety must be given equally important consideration with that of other factors of
production.
(e) A define safety programme must be developed to educate all employees in safety and to
secure their active cooperation in the effort to eliminate accidents.
(f) Safety must be included in all phases of planning, purchasing, supervision and
operation

APPRAISAL OF EMPLOYEE ATTITUDE TO SAFETY

PROGRAMMES
Knowledge of attitude of the employees to the safety programmes developed for
them and the specific measures adopted for that purpose such as the setting up of bulletin
boards, displays of safety measures, pamphlets, booklets, posters, magazines and
information to employee of an organization. The safety committee may discuss the
problem of safety with the employees, get and act on their suggestions, and undertake
43

attitude surveys.

A SAFETY EDUCATION AND TRAINING

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VISAKHA DIARY

Safety education for all levels of management personnel and for employees is vital
for any successful safety programmes. The goal of safety education is two fold to develop
safety consciousness among employees and build up a favourable attitude as their part
towards safety measures and precautions; and secondly to ensure safe work performance
on the part of each employee by developing his skill in the use operation of safety
equipment. Training is concerned with providing immediate job knowledge, skills and
methods of work, besides bringing home to the employee an awareness of the hazards he is
likely to encounter in the course of the work in particular department or a particular job,
and impressing upon him the need for a prompt report of any personal injury, for
importance of good house keeping an avoiding machine hazards, for talking precautions to
prevent the outbreak of a fire, for using hand tools properly and for protecting eyes. Safety
publicity should be undertaken by displaying posters and screening films, and by arranging
safety suggestion schemes.

SAFETY PROGRAM AND POLICY

The first step involving a safety program is to have a safety policy. Policy
specifies the goals of the company and designates the responsibilities and authority for
their achievement. Specifically, safety policy must contain a declaration of organizations
intent and the means by which the intent is to be realized. As a part of the intent the
statement should emphasize four fundamental points: (a) the safety of employees and
public is of paramount importance (b) safety will take precedence over expediency (c)
every effort will be made to involve all manages, supervisors and employees in the43
development and implementation of the safety programmes; and (d) safety legislation will
be compiled with, in the as well as the latter of the law.

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VISAKHA DIARY

NEED FOR WELFARE MEASURES

The real need for welfare arises from the two basic conditions generally known as
the long arm of the job and the social invasion of the factory. The working environment of
any job in a factory or mine or a work shop imposes some adverse effect on the workers
because of the heat, noise and ouder, fumes etc. involved in the manufacturing process.
There are also occupational hazards and environmental problems inherent and inevitable in
the manufacturing process itself, which cannot be removed or reduced. As a result
productive devices and compensatory benefits have to be provided for the welfare of the
workers. This can be referred to as the long arm of the job which stretches out its
adverse effect its adverse effect on to the worker, long after his normal working hours,
affecting his physical and mental well being. Hence, the need for welfare services within
the factory or workplace is felt.
The aspect of social invasion of the factory when a worker comes to his working
place, he is not an isolated individual but a member of the society having family members.
A worker need to be satisfied regards his culture and living environment. Hence, the
imperative needs to provide a welfare services to satisfy his personal and family needs is
felt.
Welfare unit is provided to the social security to industrial workers, the common as
an actor and number of status. The permanent among them are:
1. Factories Act, 1948
43

2. Workmens compensation Act, 1923

3. Maternity benefit Act, 1961
4. Employees state insurance Act, 1948

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VISAKHA DIARY

5. Control Labour (R & A) Act, 1970

6. The Equal Remuneration Act, 1976
7. Child Labour (prohibition & regulation) Act, 1986
8. A.P Labour Welfare Fund Act, 1987
9. Employees Provident Fund and Miscellaneous Provision Act, 1952
10. Payment of Gratuity Act, 1976
11. Industrial Disputes Act, 1947.

FACTORIES ACT, 1948

The main focus of the Act is on employees health, welfare and safety. The Act
provides for provision of facilities for washing, storing and drying, clothing, first aid,
canteens, shelters, rest rooms, lunch rooms and crche etc. it is the responsibility of the
employer to provide the above statuary welfare facilities under this Act.

THE WORKMEN COMPENSATION ACT, 1923

This Act provides for the payment to the workmen compensation for injury by
accident, arising out of and in the course of employment. In case of death or disablement,
compensation is payable to the employees.

43
MATERNITY BENEFIT ACT, 1961

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VISAKHA DIARY

The object of this Act is to provide for the maternity benefit and certain other
benefits to women employees to working in factories and other establishments. Leave with
pay of twelve weeks for the purpose of maternity related confinement and six weeks for
abortion is required to be given by the employer to women employees, under this Act.

EMPLOYEES STATE INSURANCE ACT, 1948

The main objective of this Act is to provide the certain benefits to the employees in
case of sickness, maternity and employment injury. The Act provides for sickness benefit,
disablement benefit, and dependent benefit subject to periodical payment by the injured
employee. This Act is applicable to the employees working in the covered establishment of
the notified area.

CONTRACT LABOUR (R&A) ACT, 1970

The maintain object of this Act is to regulate the employment of the contract labour
in certain establishment and to provide for its abolition under certain circumstances on the
advice of advisory committee. This Act provides for welfare and health of contract labour
including provisions related to canteen, rest rooms and first aid facilities. This Act enjoys
the principal employer, the responsibility of payment of wages and compensation in case
of accidents and in case of non payment of the same by the contractor.

43

THE EQUAL REMUNERATION ACT, 1976

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VISAKHA DIARY

The Equal Remuneration Act provides for payment of equal remuneration to men
and women workers for their work or work of similar nature and for the prevention of
discrimination on grounds of sex, against women in the matter of employment.

CHILD LABOUR (PROHIBITION & REGULATION) ACT, 1986

This Act provides for the constitution of a fund for financing of activities to
promote welfare of labour in the state of Andhra Pradesh and for the establishment of a
board for conducting welfare related activities.

EMPLOYEE PROVIDENT FUND AND MISCELLANEOUS PROVISIONS ACT,

1952
The main objective of this Act is to provide provident fund, employee pension and
deposit linked insurance for employees working in factories and other establishments. The
Act contemplates a contribution by the employer towards provident fund. It also provides
for an employee pension, out of contributions made by employer as prescribed in the Act
and scheme. Employees are allowed withdrawals for certain specific purposes like house
building, children marriage, children education etc.

PAYMENT OF GRATUITY ACT, 1972

The Act provides for payment of gratuity to employees working in factories, mines.
The Act enjoys the employees to pay gratuity at the rate of fifteen days wages for every
completed year of services with a ceiling of twenty months wages (overall ceiling Rs.43
3.5lakh) to employees who have put in minimum period of service, in case of death of an
employee the minimum period condition is relaxed.

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VISAKHA DIARY

INDUSTRIAL DISPUTE ACT, 1947

This Act provides the employees and workers for the investigation and settlement
of industrial disputes.

WELFARE MEASURES AND ACTIVITIES IN VISAKHA DAIRY

Visakha dairy considers the human resources as the most important of all the
resources in the company. Therefore, in its pursuit of enriching the quality of life of its
employees and to satisfy their needs, the company has taken several initiatives for
providing statutory welfare measures as per the provisions of factories act, 1948. As
regards non statutory welfare measures, it has been providing facilities for education,
hospital, co-operative societies etc. with the view to impact and propagate the feeling that
the company care for its employees.
The details of important welfare measures that are implemented in the Visakha dairy are as
follows:

STATUTORY WELFARE MEASURES

Canteen facilities
water coolers
first acid facilities
leave facilities
43
maternity leave

other provisions

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VISAKHA DIARY

contributory provident fund

bonus
gratuity
workmen compensation
CANTEEN FACILITY
Canteen at visakha dairy is running satisfactory. The members of recognized union
run canteen. Management renders an aid of Rs.10000 per month and 85 liters of milk to the
canteen. The management provides cooking gas, water facilities and electricity. For
breakfast nearly 100 to 150 employees and around 300 employees have their lunch in the
canteen
Canteen is provided with all facilities, fully furnished with dining tables and chairs
and also equipped with fans and lights. Night meals for night shift employees are also
provided in the canteen.
WATER COOLERS
Adequate numbers of water coolers for drinking water and facilities for washing
have been provided in each department through out the Visakha dairy.
FIRST AID FACILITIES
In the first aid boxes with the required contents like plasters, small basin, scissors,
cotton roll, tincture iodine, bandage rolls, eye and ear drops, local antiseptic cream,
paracetomal tablets etc. are provided in the visakha dairy. This is under the supervision of
personnel trained to give first aid they are regularly replenished with required materials.
43
LEAVE FACILITIES
Casual leaves:

15 days for the office staff

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VISAKHA DIARY

Casual leaves:

30 days for the plant / field site

Employees

Sick leaves:

20 days

Earned leaves:

30 days credited twice per year

Maternity holidays: 12 weeks

Optional holidays:

5 days

Public holidays:

5 days

OTHER PROVISIONS
Other provisions of the factories act, provision of rest room, sitting arrangement,
latrines, safety provisions, appointment of welfare officers etc are strictly followed.
GRATUITY
Employees are paid gratuity terms of the payment of gratuity act, 1972 and as
amended from time to time over and above the gratuity act, in the case of death of an
employee before the qualifying service of five years gratuity is paid as follows.

First year service 2 months emoluments

Before 5 years of service 6 months emoluments
On completion of 5 years of service 12 months
Emoluments

For all other cases at the time of separation from the company, maximum of Rs3.5lakh or
the amount calculated applicable to the service rendered by the respective individual,43
which ever is less, is being released towards gratuity.
WORKMENS COMPENSATION

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VISAKHA DIARY

Visakha dairy follows the workmen compensation act 1923. This act provides for
the payment to the workmen compensation for the injury by accident. In case of death or
disablement, compensation is payable to the employees, visakha dairy provides death relief
to the legal heir and instant funeral charges of Rs2000 are provided.
CONTRIBUTORY PROVIDENT FUND
Contributory provident fund is at the rate of 12% of the wages per month of the
employees and fund is managed by a trust as per the section 17 of the employees
provident fund and miscellaneous provisions act, 1952.
MATERNITY LEAVE
Maternity leave for 12 weeks with full pay without restriction if at least eighty days
of working is extended to the women employees.

NON STATUTORY WELFARE MEASURES

FACILITIES GIVEN TO EMPLOYEES

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VISAKHA DIARY

Facilities for education

Scholarship
Uniform
Housing facilities
Safety education and training
Employee health programme.
Insurance
ESI
Accident
Preventive measures
LTC
FACILITIES FOR EDUCATION
The union has constructed a trust by name Milk producers and employee
educational health and medical welfare trust in the year 1989 with an objective to provide
education, heath and medical facilities to the milk producers, dairy employees and their
children. It is not out of place to mention that this a unique enterprise embarked upon by
this union in the entire state for this initially an English medium school was started in a
private accommodation room from LKG to second standard with a strength of 90 students
during the year 1986. By the year 1996 strength was increased to about 800 with a teaching
staff strength of 55, the school now running up to tenth standard upgrading to junior
college from 1997-98, permanent school building complex was constructed for the school43
with a total outlay of 1crore for ground and first floor for providing accommodation for
class rooms in the ground floor and hostel facility in the first floor for the children of rural

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VISAKHA DIARY

farmers. The building was inaugurated on 14 th June, 1993 and the school shifted to the
building.
The organization is showing interest to provide good quality education for the
children of the employees. It is providing an annual education allowance of Rs2400 for the
employees in the organization. If the total education expenses spent by the employee for
educating his or her child are less than 2400 then the annual expenses made will only be
given. That means 2400 are the actual expenses which ever is less will be given by the
organization. This allowance is paid as per the statutory name that is only for two children.
SCHOLORSHIP
To increase the employees loyalty towards Visakha dairy, it is providing the
scholarship facility to the employees children every year on the basis of their merit. Every
year the organization gives three merit scholarships for the seventh and tenth class students
respectively.
UNIFORM
Visakha dairy provides uniform twice in a year to all the employees except for the
officers and the office staff comprising of a blue colored shirt and a navy blue colored pant
along with a pair of shoes.
HOUSING FACILITIES
Housing facilities are provided to some of the employees. Nearly 30 quarters were
provided with in the visakha dairy premises. Those who are not provided housing facility
are provided 20% HRM.
Individual houses at nathayya palem housing colony for those who are interested to43
go for own house.
SAFETY EDUCATION AND TRAINING

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VISAKHA DIARY

Since most of the employees or workers are illiterate or less educated, so it is very
essential or important to educate and train them regarding safety measures to avoid
accident.
In visakha dairy there is no regular programme as such, but time to time
Visakhapatnam safety council organization training program for the employees safety
equipment are provided by the organization but since there is no strict inspection, workers
tend to work without using them.
EMPLOYEE HEALTH PROGRAM
Nearly 80% of the employees are covered by ESI scheme and those employees who
are not covered are paid Rs45 per month for medical benefit. Recently with the help of the
funds donated by trust of milk KIMS or KRISHI hospital was inaugurated by honorable
major chief minister Sri Nara Chandrababu Naidu, in Sheela Nagar, Visakhapatnam.
In visakha dairy, Visakhapatnam there is a facility of medical reimbursement also.
ESI (Employee State Insurance)
Visakha dairy follows this ESI Act and under this 80% of the employees are
recovered and statutory deduction of 12% from employees salary and 12% from employer
contribute for the same. Even employees basic salary is Rs10000, they provide ESI
facility. Above Rs10000 they provide allowance of only Rs45.

43

ACCIDENTS

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VISAKHA DIARY

The nature of activity involved in production and processing is not so hazardous,

hence the accidents are very rare in visakha dairy. Till now no major accident has been
recorded.
The main reason behind the accident is the lack of proper understanding about the
nature of work and the improper inspection by the supervisors.
PREVENTIVE MEASURES
Firstly work spot and floor should be maintained dry to avoid skipping, mainly in
the ghee section where the surface was found oily. Those employees engaged in
engineering and maintenance section, where some time have to do welding should use
gloves, employees who are working in processing section work in a shift.
L.T.C
LTC facilities are also given to the employees for the first two years. LTC has
given for home town and for the next 2 years in Andhra Pradesh for all employees
including executives.
INSURANCE
The company was providing health and wealth medical insurance policy to all the
employees excluding contract labour. The insurance is of two types
Family insurance premium
Single insurance premium
Family insurance covers employee, wife, 2 to 3 children with the total coverage of the
insurance of amount Rs500 per annum.
Single insurance premium includes employees who are un married with premium coverage43
of Rs.300 per annum.

FACILITES GIVEN TO THE MILK SUPPLIERS

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VISAKHA DIARY

The technical input provided for milk production enhancement:

The visakha union is not only procuring, processing and marketing the milk but also
provides facilities to the milk producers to improve their cattle wealth and socio economic
living standards through increase in the milk production.

FACILITIES PROVIDED TO THE MILK PRODUCERS

Animal health care
Artificial insemination
Feed and fodder activity
Distribution of fodder mini kits on 50% subsidy
Cattle insurance scheme
Distribution of devoming drugs
Premixed cattle feed is being supplied at the rate of Rs.4.00 per Kg
Film shows
PRIMARY HEALTH CARE
346 Veterinary first aid centers are in function. These centers are started where
there are no AH departmental institutions. One of the employees of the dairy societies is
trained in veterinary first aid who is attending the work.
Number of constructed society building in various districts is as follows:
Visakhapatnam 264
Vijayanagaram
Srikakulam

43

63
1

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VISAKHA DIARY

The union has its own regional training center near hanumanthawaka with boarding
and lodging facilities and imparting for the society personnel in the following fields.
40 days AI programme
20 days AI programme
10 days veterinary first aid training
30 days paid secretaries
FODDER FORM
In the training center premises a fodder form is established both for the
demonstration to the trainees and seed multiplication. The following fodder grasses are
grown in the form.
Form:
CO-1

NB-21

PARA

GUNIA

During the year 1997-1998 fodder slips to cover an area of 130 centers producing and
distributed to the milk producers free of cost.
WELFARE ACTIVITIES FOR THE MILK PRODUCERS AND EMPLOYEES
The union has constructed a trust by name milk producers and employees
education, health and medical welfare trust in the year 1989 with an objective to provide
education, health and medical facilities to the milk producers, dairy employees and their
children. An English medium school was started in a private accommodation room from
LKG to second standard with strength of 90 children during the year 1986. By the year
1996 strength was increased to about 800 with a teaching staff strength of 55, the school
43
now running up to tenth standard upgrading to junior college from 1997-98, permanent
school building complex was constructed for the school with a total outlay of 1crore for
ground and first floor for providing accommodation for class rooms in the ground floor

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VISAKHA DIARY

and hostel facility in the first floor for the children of rural farmers. The building was
inaugurated on 14th June, 1993 and the school shifted to the building. Super specialty
hospital was constructed to clear the needs of rural farmers and employees.
LIFE INSURANCE SCHEME TO THE MILK PRODUCERS
During the year 1997-98 as a welfare measure to the milk producers life insurance
scheme and accidental policy were covered to nearly 1lakh farmers in this union. Under
this scheme, an amount of Rs10000 is being paid to the farmers on natural death up to an
age limit of 60 years, without collecting any premium from the farmers. So far 600
members are covered under this scheme from 04/97 to 03/98.
Secondly this union has taken upon accidental policy with UTI Company covering
1.20lakh farmers and the deceased family can get 20000 under this programme. This is
only a small attempt to help farmers to support the moral coverage when they were in
desserts by losing their family earning member.
SOCIO ECONOMIC MEASURES
Various social welfare activities have been set up by the trust. Among the activities
the trust has provided the drinking water to the rural poor by digging bore wells in villages
and arranging water channels for farmers by digging old and new reservoirs and also
constructed bridges on the rivers, while crossing rivers were impossible for rural people in
rainy season.
Major task of the trust in identified training providing employment to weaker
sections that are not having any support from the society. Providing employment to the
physically handicapped people every year by conducting interviews with co-operation of43
visakha dairy, providing employment to women who are physically abused by their family
and no other source of living, providing hearing aids to deserving deaf people after a

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VISAKHA DIARY

thorough check up by the concerned physicians providing wheel chairs to the physically
handicapped people.
HEALTH
Krishi trust hospital is one of the most well equipped and best medical trust
hospitals in the green city Visakhapatnam. The hospital is a 100 bedded modern multi
specialty cum critical care referral hospital to give the patient best care round the clock.
The hospital is fully equipped with good infrastructure with world class quality to provide
best medical care Krishi trust hospital is situated in a quiet and serene place in Sheela
nagar away from the noise pollution of the city.

43

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VISAKHA DIARY

CHAPTER V

DATA
ANALYSIS
&
INTERPRETATION

43
Data Tabulation and Analysis
Table no: 1

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VISAKHA DIARY

Awareness of the welfare activities by the employees

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
94
6
100

Percentage
96%
6%
100%

No.of Respondents

1 Yes
2 No

Interpretation :
From the above table we can know that 96% of the employees know about the welfare
activities given by the company and 4% of the employees dont know about the welfare
activities given by the company.

Table no:2

43

Opinion about the cleanliness of the company

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VISAKHA DIARY

S.No.
1
2
3

Employee Response
High
Moderate
Below average
Total

No.of Respondents
65
28
7
100

Percentage
65%
28%
7%
100%

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:
From the above table we can know that 65% of the employees felt high in
cleanliness of the company and 28% of the people felt average in cleanliness of the
company and 7% of the employee felt below average in cleanliness of the company.

Table no3

Opinion regarding lightening condition of office

43
S.No.
1
2
3

Employee Response
High
Moderate
Below average

No.of Respondents
72
26
2

74

Percentage
72%
26%
2%

VISAKHA DIARY

Total

100

100%

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation :
From the above table we can know that 72% of the employees felt high in
lightning conditions of the company and 26% of the employees felt average in lightning
conditions of the company and 2% of the employee felt below average in lightning
conditions of the company.

Table no:4

Opinion regarding working hours of their job

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
86
14
100

75

Percentage
86%
14%
100%

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VISAKHA DIARY

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can know that 86% of the employees satisfied with the
working hours in the company, 14% of the employees dissatisfied with the working hours
in the company.

Table no:5

Opinion regarding educational allowance provided

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
100
0
100

76

Percentage
100%
0%
100%

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VISAKHA DIARY

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can know that most of the employees satisfied with the
educational allowance provided by the company.

Table no:6

Opinion regarding the medical benefits provided

S.No.
1
2
3

Employee Response
High
Moderate
Below average
Total

No.of Respondents
37
59
4
100

Percentage
37%
59%
4%
100%
43

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VISAKHA DIARY

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:
From the above table we can know that 37% of the employees felt high in medical
benefits provided by the company and 59% of the employees felt average in medical
benefits provided by the company and 4% of the employee felt below average in medical
benefits provided by the company.
Table no:7

Opinion regarding the medical air policy covered

S.No.
1
2
3
4

No.of Respondents

1 Employee only
2 Employee, spouse,
2 children
3 Employee, spouse,
parents
4 Employee, spouse,
parents, 2 children

78

Employee Respon
Employee only
Employee, spouse
Employee, spouse
Employee, spouse
Total
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VISAKHA DIARY

Interpretation:
From the above table we can know that 56% of employee, spouse. 2 children covered
under medical air policy, 30% of employee, spouse, parents covered under medical air
policy, 14% of employee, spouse, parents, 2 children covered under medical air policy.
Table no:8

Opinion regarding the recreational activities providing or not

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
100
0
100

Percentage
100%
0%
100%

43

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VISAKHA DIARY

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can know that most of the employees satisfied with the
recreational facilities provided by the company.

Table no:9

Opinion regarding the frequencies of recreational activities

S.No.
1
2
3
4
No.of Respondents

Employee Respon
Monthly
Quarterly
Annually
Need based
Total
43

1 Monthly
2 Quarterly
3 Annually
4 Need based

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VISAKHA DIARY

Interpretation:
From the above table we can know that recreational activities are encouraged as
per need of the occasion. 49% agreed to the same while 37% voted for Quarterly
Recreational activities. As few as 14% people voted in favour of Annual Recreational
Activities while no one considered Monthly activities as an appropriate alternative.
Table no:10

Opinion regarding the increments based on performance appraisal

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
79
21
100

Percentage
79%
21%
100%

No.of Respondents

Interpretation:

1 Yes
2 No

81

From the above

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VISAKHA DIARY

table we can know that 79% of the employees satisfied with the increments based on
performance appraisal, 21% of the employees dissatisfied with the increments based on
performance appraisal.
Table no:11

Opinion regarding the canteen facilities

S.No.
1
2
3

Employee Response
High
Moderate
Below average
Total

No.of Respondents
25
67
8
100

Percentage
25%
67%
8%
100%

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:
From the above table we can know that 25% of the employees highly satisfied
43
with the canteen facilities given by the company, 67% of the employees felt average in
canteen facilities given by the company, and 8% of the employees felt below average with
the canteen facilities given by the company.

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VISAKHA DIARY

Table no:12

Opinion regarding the housing and travelling facilities provided by

company

S.No.
1
2
3

Employee Response
High
Moderate
Below average
Total

No.of Respondents
27
73
0
100

Percentage
27%
73%
0%
100%

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:
From the above table we can know that 27% of the employees highly
satisfied with the housing and traveling facilities given by the company, 73% of the
employees felt average in housing and traveling facilities given by the company.
43
Table no:13

Opinion regarding the employee state insurance policy

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VISAKHA DIARY

S.No.
1
2
3

Employee Response
High
Moderate
Below average
Total

No.of Respondents
63
32
5
100

Percentage
63%
32%
5%
100%

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:
From the above table we can know that 63% of the employees highly satisfied
with the ESI policy provided by the company, 32% of the employees felt average in ESI
policy provided by the company, and 5% of the employees felt below average with the
ESI policy provided by the company.

Table no:14

Opinion regarding the provision of updated information from the

company

S.No.
1

Employee Response
Yes

No.of Respondents
96

84

Percentage
96%

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VISAKHA DIARY

No
Total

4
100

4%
100%

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can know that the 96% of the employees felt that the
company providing proper information if any changes taken place in the company, 4% of
the employees felt that the company not providing any information regarding the changes
taken place in the company.

Table no:15

Opinion regarding the promotional facilities in the company

S.No.
1
2
3

Employee Response
Satisfied
To some extent
Dissatisfied
Total

No.of Respondents
30
59
11
100

85

Percentage
30%
59%
11%
100%

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VISAKHA DIARY

No.of Respondents

1 Satisfied
2 To some extent
3 Dissatisfied

Interpretation:
From the above we can know that the 30% of the employees satisfied with
the promotional facilities in the company, 59% of the employees satisfied up to some
extent with the promotional facilities in the company, 11% of the employees dissatisfied
with the promotional facilities in the company.

Table no:16

Opinion regarding the opportunity at work to grow from the last 3

years

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
71
29
100

Percentage
71%
29%
100%
43

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VISAKHA DIARY

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can came to that 71% of the employees got an
opportunity to grow from last 3 years, 29% of the employees didnt got any opportunity to
grow.

Table no:17

Opinion regarding the deciding of insurance amount

S.No.
1
2
3

Employee Response
Fixed
Based on compensation
Based on level
Total

No.of Respondents
0
79
21
100

87

Percentage
0%
79%
21%
100%

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VISAKHA DIARY

No.of Respondents

1 Fixed
2 Based on
compensation
3 Based on level

Interpretation:
From the above table we can know that 79% of the employee felt the insurance
decided on the basis of compensation, 21% of the employee felt the insurance decided on
43

the basis of level of the employees.

Table no:18

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VISAKHA DIARY

Opinion regarding the satisfaction with the materials and equipment

in the work place to work effectively
S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
84
16
100

Percentage
84%
16%
100%

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can know that 84% of the employees satisfied with
the materials and equipments provided in the company to work effectively, 16% of the
employees dissatisfied with the materials and equipments provided in the company to work
effectively.
43

Table no:19

Opinion regarding the treatment of supervisors or superiors towards

the subordinate as a person at work place

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VISAKHA DIARY

S.No.
1
2

Employee Response
Yes
No
Total

No.of Respondents
92
8
100

Percentage
92%
8%
100%

No.of Respondents

1 Yes
2 No

Interpretation:
From the above table we can know that the 92% of the employees felt the
superiors treated them as a person, the 8% of the employees felt the superiors not treated
them as a person.
Table no:20

Opinion regarding the support given by the management

S.No.
1

Employee Response
High

No.of Respondents
41

90

43

Percentage
41%

VISAKHA DIARY

2
3

Moderate
Below average
Total

59
0
100

59%
0%
100%

No.of Respondents

1 High
2 Moderate
3 Below average

Interpretation:
From the above table we can know that the 41% of the employees highly
satisfied with the support given by the management,59% of the employees satisfied up to
some extent with the support given by the management.

43

CHAPTER VI

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VISAKHA DIARY

FINDINGS,
SUGGESTIONS AND
CONCLUSION

FINDINGS

From the survey I can came to know that all most all welfare measures providing to
the employees by the company.

43

Most of the people know about the welfare activities.

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VISAKHA DIARY

Most of the people felt that welfare activities increasing the job satisfaction and
productivity.

Most of the employees satisfied with the working hours in the company.

Most of the people expressed the the housing and traveling conveyance is good in
position.

Most of the employees satisfied with the educational allowance provided by the
company.

Most of the people satisfied with medical benefits provided by the company.

Most of the people got an opportunity to grow since last 3 years.

All most all employees satisfied with the materials and equipments in the company
to work effectively.

All most all employees satisfied with the promotional facilities given by the
company.

Most of the employees are satisfied with the their superiors treatment towards them
and in taking suggestion from the employees.

Most of the employees satisfied with the support given by the management.

SUGGESTIONS
43

From the survey I observed that the employees are not fully satisfied with the
canteen facilities so that the management should increase the food quality.

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VISAKHA DIARY

The induction period of the employees should be increased.

There is a need of proper labeling or notification of each department of sections in

the Visakha dairy.

Some safe captains should place in the various sections of dairy importing or
spreading awareness among the employees.

To avoid confusion the storage tanks should be labeled or numbered properly.

Advertising should be increased to upgrade the image of Visakha Dairy in the

changing environment where private dairies are coming up.

CONCLUSION
43

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VISAKHA DIARY

Vijaya visakha dairy was one of the biggest dairy in terms of milk products and annual
productivity among the dairy plant. Visakha dairy is the one of the best in marketing,
packaging, storage, distribution channel, HR wise and financially good.

Vijaya visakha dairy motivates their employees by giving good salary, wages
and providing all most all welfare measures. The greatest highlight of the vijaya visaka
dairy is the employee are not gone in to any strike till today.

43

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VISAKHA DIARY

BIBLIOGRAPHY

BIBLIOGRAPHY
Text Books:

96

43

VISAKHA DIARY

1. Aswathappa K. (1997). Human Resources and Personnel

Management. Tata McGraw-Hill Publishing Company limited,
New Delhi.
2. Bhagoliwala,

T.N.,

(2001)

Personal

Management

and

Industrial Relations, Sahitya Bhavan, Agra.

3. Edwin B.Flippo, (1976) Principles of Personal Management,
McGraw-Hill, New York.
4. L.M.Prasad, (2005), Principles and Practices of Management
Sultan Chand &Sons Educational Publishers, New Delhi.
5. Monappa Arun and Saiyadin S Mizra, (1979), Personnel
Management, Second Edittion,New.

Websites:

43
www.hrsolutions.inc
www.e-hresources.com

97

VISAKHA DIARY

www.hrdnetwork.com
www.wikipedia.com
www.12manage.com
Journals
Indian journal for Industrial relations
HRD Review

ANNEXURE

Dear sir/madam,

43

98

VISAKHA DIARY

I am SOBHA RANI. DUMPA pursing my MBA from Aditya institute of PG

studies affiliated to AU as a part of my project work. I prepared questionnaire on the
welfare activities in visakha dairy in Visakhapatnam.

Name

Employee No :

Designation

Department :

Age

QUESTIONNIARE
1. Are you aware of welfare activities?
a) Yes

b) No

2. How do you feel about the cleanliness of office?

99

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VISAKHA DIARY

a) High

b) Moderate

c) Below average

3. How do you feel about the lighting conditions of office?

a) High

b) Moderate

c) Below average

4.Are you satisfied with the working hours of your job?

a) Yes

b) No

5.Are you satisfied by educational allowance?

a) Yes

b) No

6. How do you feel about the medical benefits provided?

a) High

b) Moderate

c) Below average

7. Who are covered under medical air policy?

a) employee only

b) employee, spouse, 2 children

c) employee, spouse, parents

b) employee, spouse, parents, 2 children
8. Is the company providing recreational activities?
a) Yes

b) No

9. what are the frequencies of recreational activities?

a) Monthly

b) Quarterly

c) Annually

d) Need based

10. Are you satisfied with the increments based on performance appraisal?
a) Yes

b) No

11. How do you feel about canteen facilities?

a) High

b) Moderate

c) Below average

12. How do you feel about housing and traveling facilities provided by company?

100

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VISAKHA DIARY

a) High

b) Moderate

c) Below average

13. How do you feel about ESI Policy?

a) High

b) Moderate

c) Below average

14.Is the company provided proper information if any changes takes

Place?
a) Yes

b) No

15. What is your opinion regarding promotional facilities in the

company?
a) Satisfied

b) To some extent

c) Dissatisfied

16. Have you had any opportunity to grow at work since last 3 years?
a) Yes

b0 No

17. How is the insurance amount decided?

a) Fixed

b)Based on compensation

C) Based on level

18. Do you satisfied with materials equipment provided to you to

work effectively?
a) Yes

b) No

19.Does your superior or supervisor at work seem to care about as a

person?
a) Yes

43

b) No

20. How do you feel about the support given by the management?
a) High

b) Moderate

101

c) Below average

VISAKHA DIARY

BIODATA
Name: D. Sobha rani

102

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VISAKHA DIARY

Fathers
Name: D. Durga Rao
Date
Of Birth: 10-03-1986.
Age:

22

Sex:

Female

Nationality: Indian
EDUCATIONAL QUALIFICATIONS:
Qualification
Post
Graduation

College/School

Board /
University

Aditya institute of
P.G studies,
surampalem

Andhra University

B.sc(Biology)

Sri chaitanya
Degree college,
Vijayanagaram

10+2 (Bi.P.C)
(AISSCE)

Jawahar Navodaya
Vidyalaya,
Srikakulam

10th (AISSE)

Jawahar Navodaya
Vidyalaya,
Srikakulam

Andhra University

Central Board of
Secondary
Education
Central Board of
Secondary
Education

Year

Aggregate

2008-10

pursuing

2004-07

66%

2002-04

65%

2002

57%

43

103