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Submitted to




Mr. A.P. Jagani Mr. Kerav Pandya

Marketing Officer Lecturer





The professional training is the internal part of an M.B.A. programme. It

helps the students understand practical aspects of Business Management in a
better way as a part of my M.B.A. programme at Anand Institute of
Management. I was supposed to work with the organization for a period of
‘six week.’

I was required to undertake a detailed study of the activities of Baroda

Dairy as a whole and its department viz. Production, Marketing, Finance, and
Human Resource Department etc. It helped me to apply theoretical
knowledge into practical experience, working with all kinds of perishable
commodities. Looking at Baroda Dairy it has one of the modern plants with
latest equipments and the best personnel.

Having milk as a major product, it has various by-products, which also

has a bigger share in the total production. People have total faith in Baroda
Dairy products and it has highest quality control norms, duly certified with ISO
9001-2000. Baroda Dairy products have become most popular and preferred
by people.

To be a Master of Business Administration student is a matter of pride

because we are in a field, which helps us to develop from a normal human
being into a disciplined, and dedicated professional. One has to be a good
learner to sharper knowledge in the particular field to achieve and attain the
desired goals and heights. I conducted a research to gain an understanding
about the Availability of Baroda dairy’s milk. To find the per person
consumption of the Baroda Dairy and Sugam products, I used research
questionnaires as the research and data collection tools. The responses were
collected from 100 respondents in a region of Dabhoi.I had learned lot during
my summer training project at Baroda dairy, and I hope this will be helpful and
useful to both Baroda Dairy and me also in future.

I have been able to prepare my report successfully and I acknowledge

a special thanks to all those people without whose support it was impossible
for me to make the project report. It has been an enriching experience for me
to undergo my summer training at ‘Baroda Dairy’ which would have not been
possible without the goodwill and support of the people around.

I would hereby take this opportunity to show my gratitude towards all

my mentors for what I have learnt during my training. A good response,
feedback and co-operation given by whole staff helped me in gaining
knowledge and solving my queries. I convey my sincere thanks to all the
officials of Baroda Dairy.

I would like to thank to Mr. Ravindra Mathur (Managing Director) for

giving me this opportunity to work at Baroda Dairy. I am also thankful to Mr. V.
C. Patel (Marketing Manager), I am also thankful to Mr. A. P. Jagani (Officer
Marketing Department) and also to Mr. Alok Desai (Training Officer) for
guiding me and supporting me in giving complete and comprehensive data
required for my project work. Finally I am thankful to all Baroda Dairy’s Family.

I am also extremely thankful to our M.B.A Program Management for

giving me this opportunity which will be helpful for me in my career ahead. I
express my sincere thanks to our Director Dr. N.N. Patel and faculty guide Mr.
Kerav Pandya who had guide to me throughout my training.

I, JAY RAY, hereby declare that the report on “Summer Training”

result of my own work and indebtedness to other work publications, if any,
have been duly acknowledged.

Place: Anand (Signature)

Date : 2/07/09 JAY. P. RAY

The report consists of the details on Baroda District Co-operative Milk

Producers Union Ltd. It is a co-operative society. The main aim of it is the
welfare of the society by providing quality milk to its consumers at an
affordable price.

It has various functional departments such as the Production, Human

Resource, Finance, Marketing, Purchase and Stores, Quality Assurance,
Dispatch and Logistics. A detail study of all these departments have been
made so as to get a clear view of the working of each of them.

In addition to it a survey on the ‘Availability of Baroda Dairy’s Milk’ has been

done in the Dabhoi city. This survey is useful for the company to know the
status of availability of Amul milk in Dabhoi. This will enable the company to
take appropriate action as needed to increase as well as to retain its
customers in the maket. The survey has been analyzed by presenting it in the
form of graphs and tables and based on it the interpretations have been
made. The graphs and tables have been interpreted and based on it the
results and findings have been made. Lastly the conclusions as well as the
suggestions where necessary have been made.

Executive Summary
PART-I General Information
1 About the Company
2 About the Functional Departments
 Production Department

 Human Resource Department

 Finance Department

 Marketing Department

 Purchase and Stores

 Quality Assurance

 Dispatch and Logistics

Part-II Primary Study

3 About the Industry
4 Introduction
 Product Profile

 Background of the Study

 Importance of the Study

5 Overview of the Project

 Objective of the Study

6 Research Methodology
 Research Design

 Sources of Data

 Data Collection Method

 Population

 Sampling Method

 Sampling Frame

7 Data Analysis and Interpretation

8 Limitations of the Study
9 Results and Findings
10 Conclusion/Suggestions



1 No of people 1
purchasing milk
2 Brand of Milk 2
purchased by
4 Frequency of 4
purchasing milk in
a day
5 Timing of 5
purchasing milk

6 Factors affecting 6
buying behavior
7 Satisfaction level 7
about availability of
Amul milk
8 Satisfaction level 8
of Amul milk
9 Satisfaction level 9
about availability of
Amul milk
10 Response of 10
respondent about
availability of Amul

11 Reason of 11
superiority of Amul
milk in comparison
with other brands

Sr No Particulars Chart No. Page No

1 Pattern of people 1
in purchasing milk
2 Brand of Milk 2
purchased by
3 % of respondents 2.1
buying AMUL Milk
4 Daily 3
Consumption of
5 Purchase
frequency of milk
in a day
6 Timing of 5
purchasing milk
7 Factors affecting 6
buying behavior
8 Factors driving 6.1
people to
purchase milk
9 Availability of 7
required quantity
of Amul milk
10 Satisfaction level 8
of Amul milk
11 Satisfaction level 9
about availability
of Amul milk
12 Response of 10
respondent about
availability of Amul

Traditionally Dairy was a subsidiary occupation of the farmer. However,

the contribution of the farmer’s income was not prominent as it was from
farming. But this attachment to dairy was keep as tradition handed down from
one generation to the next.

Baroda District lies in the centre of Gujarat, a state of Western India,

well-known for co-operative dairying. Baroda District co-operative Milk
Producers’ union Ltd. Is the full name of Baroda dairy. As the name suggests
that it is a co-operative union. The company is engaged in the production of
milk, flavored milk, butter and ghee, butter milk. The company also produces
a wide variety of ice-cream, shrikhand, and many sweets through Sugam unit,
a subsidiary of Baroda dairy.

The plant is situated in Makarpura area, in the center of the city. The
plants of Baroda dairy are fully equipped with latest technology and modern
facilities. Baroda dairy always work for welfare of society.

With the view to relieve the milk producer from the exploitationby the
private vendors, and to give a remunerative price for their milkand to supply
good quality of milk to the citizen of Baroda city, the milkunion was
established on 24th December, 1957.

The milk union got guidance and help in all respect from
theNeighboring milk union of "Amul" especially from the FounderChairman
of "Amul", Shri T.K. Patel and then the general manager,Dr.V.Kurien who
supported and guided the Baroda Milk Union. Thisunion has strong
leadership of Shri Maganbhai Patel, Founder Chairman and Shri Jashvantlal
Shah, Deputy Minister in the then state of Bombay. Under their dynamic
leadership the foundation stone of this union was laid.

First six milk co-operative societies became founder members ofthis

union from where the milk was brought for distribution, but, in the absence of
adequate facilities for chilling and pasteurisation it was thought best to
postpone the rural milk collection. In turn, pasteurised hygienic milk from Amul
Milk Union was brought for distribution to the consumers of the Baroda city.

The foundation stone of 50,000 LPD Dairy Plant was laid on 24thAugust
1962, by Shri T.K. Patel, the Doyen of the Co-operative Dairy Movement in
Gujarat. In the year 1963-64 milk distribution through 21Distribution centres
was started in an organised way.

In the year 1964-65, the union started its milk procurement from 120
milk co-operative societies. The dairy plant commissioned on25th April, 1965,
was inaugurated by Shri Morarjibhai Desai, thethen Finance Minister,
Government of India. Under the milkdistribution system, pasteurised milk in
the bottles was suppliedto the city consumers. The bottling plant was set by
UNICEF incollaboration with CARE to supply the reconstitutes milk toschool
children on matching contribution basis.

Baroda dairy is a co-operative society and it is not

just a profit motive unit but to serve the society. The main
mission of the Baroda dairy is to assure and safe guard
the interest of the both nominal consumer of milk in city
area and supplier of rural areas. And for this the Baroda
dairy deals accordingly to provide the best quality
products at a reasonable price to their customer.

• SUGAM’ unit of Baroda dairy received “Jamanalal Bajaj Award”

in the year 1994 for the best Mgt.

• In 1998, to remain as a ‘Market Leader’ in this competitive

World, Baroda dairy has acquired the ISO 9002 & HACCP 9000

• In 1998,vice president, Shri Krishna Kant Awarded Baroda dairy

by presenting “National Productivity Award” for its production &

• In 2001, Baroda productivity council organised “Good

Housekeeping Competition” in which the Bodily Unit of Baroda
dairy won the prize.

• In 2002, Baroda dairy received certificate from “Gujarat Safety

Council” for the various safety measures adopted at all the units.

• In 2003, Baroda dairy received ISO 14001 certificate under its

environmental policy.

• Highly automated plan for manufacturing GULAB JAMUN,

SHRIKHAND and PENDA unique in India “Sugam” brand

• Second in horticulture

• Received 2nd prize for minimum accidents among drug,

pharmaceutical, food and dairy industries.

We are committed to protect and preserve natural Environment for

social welfare and co-existence. Baroda Dairy, A leading co-operative
organization is engaged in manufacturing and marketing of milk and milk
products in India and abroad.


● Control our plant operations to prevent pollution.

● To conserve natural resources and energy.
● Comply with applicable environmental legislation and regulations.
● Applying greening of the earth within our premises.
● Continually improve our environmental performance.
● To minimize generation of waste and follow appropriate methods for it’s
● Create awareness among employees on environmental issues and
environmental management system.
● Keep our work environment clean and safe.

This Environmental policy will be communicated to all employees,

contractors and suppliers of Baroda Dairy.

Baroda Dairy firmly believes to provide Milk and Milk products of quality
to give total consumer satisfaction. In order to achieve this objective, Baroda
Dairy has implemented Quality and Food safety Management Systems since
May 2000. The dairy is certified for ISO 9001:2000 and HACCP by SAI
Global, which is a wholly owned subsidiary of Standards Australia
International Ltd.

The implemented systems emphasize on ensuring and maintaining

quality and Food safety at all stage of procurement, Production, Packaging,
Storage and Distribution of Milk and Milk Products. The quality of food
additives, packaging material and utilities system of Food safety is based on
the internationally recognized Codex Standards.

Both the Quality and Food safety Management Systems are audited
every six months by SAI Global to ensure the continuity and adequacy. The
product quality and safety is ensured at every stage of operation and does not
merely relay on final product testing. There is a system in place to identify and
assess the risk at every stage of product manufacturing, packaging storage
and distribution. Appropriate control measures are implemented at the
identified stage to eliminate the possible cause of risk. This ensures the
quality and food safety at every stage.

The Dairy is always starving for understanding the needs and

expectations of its valued customers. The customers’ expectations and
perceptions are reflected in new development and or improvements

A high level of plant and personnel hygiene and housekeeping is

maintained to avoid any cross contamination. The housekeeping audits are
conducted periodically and employees are motivated to participate in good
Housekeeping Competitions.

Baroda Dairy continually makes efforts for conservation of energy and

waste reduction. Employees are encouraged and motivated for their direct
involvement and teamwork for achievement of objectives like reduction in
water consumption, electricity consumption, fuel consumption etc.

The dairy develops and maintains lawn and trees on open land within
the premises.

Baroda Dairy now, looks forward to implement ISO-14001:1996

Environmental management System with the objective to prevent pollution
and protect environment through proper Management and control of its
activities, products and services.



Baroda District Co-operative Milk Producers

Union Ltd. (BDCMPL), Baroda Dairy.


Co-operative Sector


24th December 1957

Rg. No.:- D 4/57.


Baroda District Co-operative Milk Producers

Union Ltd., Baroda Dairy.Opp.

O.N.G.C. Regional office,

Makarpura Road, Vadodara-390009.

Phone: - 0265-2641066

1. Baroda Dairy – Baroda

2. Sugam Unit – Baroda

3. Cattle Feed Factory – Itola

4. Milk Chilling Center – Bodeli

5. Veterinary Sub Unit – Savli

6. Veterinary Sub Unit – Dabhoi


Large Scale Industry



1. The Baroda Central Co-operative Bank Ltd.

2. The UCO Bank, Baroda

3. Bank of Baroda, Baroda

4. Punjab and Sindh Bank, Baroda

5. Bank of India
6. Central Bank of India, Baroda


1. Area in Sr.K.M. :77.94

2. No. of District :12
3. Urban Land :611300 Hectares
4. Irrigated land :127900 Hectares

Shri Madhubhai B. Shrivastav


Shri Satishbhai M. Patel


Shri Ravindra Mathur


Shree N. A. Chauhan

Particulars Amount(Rs.)

Land 54,98,752
Building 3,56,68,046
Plant & Machinery 8,08,41,885
Furniture & Fixtures 80,89,866
Vehicals 43,54,466
Total 13,53,53,015


As we know Baroda dairy is always working on new innovation since its

inception. Now, Baroda dairy is going to introduce a new product of mineral
water called “Narmada Neer” very soon. It is also going to to introduce tomato
catchup in a near future. In the Baroda Dairy the present plant capacity is
worth 400000 liters and they want to increase the capacity by 100000 liters.
i.e. they want to make the plant capacity of 500000 liters. They also want to
increase its chilling capacity. They also want to increase the cold storage in
the dairy. The main aim of them is so achieve 5% increase in scales of their
product till next 5 years.


2006-07 3002469646 59, 91,023
2007-08 3391290000 75, 93,353
2008-09 3710806000 83,52,000




There are so many persons working in Baroda District C0-

operative Milk Producer Union Ltd. Units covered are as follows:

Sr. No Units No of Manpower

1 Baroda Dairy, Baroda 968
2 Sugam Unit, Baroda 348
3 Cattle Feed Factory, Bodeli 120
4 Milk Chilling Center, Itola 86
5 Veterinary Sub- unit, Dabhoi 17
6 Veterinary Sub-unit , Savli 15
Total 1554


Baroda Dairy has a very smooth communication channel as the

organization structure is very simple. The whole channel is in the vertical
form. Every sub-ordinate is responsible towards his superior only. This
superior gives order and the responsible sub-ordinate does his reporting
regularly. So Baroda Dairy has a formal type of communication channel.


Baroda Dairy is a unique place processing several products from the basic
raw-material i.e. Milk, These products are as under and are immensely
popular in and around city of Baroda.

• Milk

1. Amul Gold

2. Amul Shakti

3. Amul Slilm & Trim

4. Amul Cow’s Milk

• Butter Milk

1. Goras

2. Jeera Chhas

• Flavoured Milk

1. Elaichi

2. Kesar

3. Mango

• Butter

1. Table Butter

2. White Butter

• Ghee

1. Surbhi

2. Amul

• Rajwadi Kadhi
Overall organizational culture

The organizational culture of Baroda Dairy is the greatest innovation factor for
employees. All the employees work here as family members. All departments
are highly co-related through which information reaches easily and especially
to all levels. Here the discipline is maintained, so that the employees at all
levels have respect for each other.


The major competitors are the private vendors & other dairies,
which are not members of the union. The other dairies are:-

Sardar - pack milk

Vimal - pack milk
Umiya - pack milk
Ellora - loose milk
Bumiya - loose milk
Amul - pack ice-cream
Jagdish - pack milk
Vadilal - pack ice-cream
Havmor - pack ice-cream
Rajasthani - loose ice-cream

People have endless wants & to satisfy these wants they need
various goods & services. The production Department produces these
various goods. The main function of production dept is to convert raw
materials into finished goods by processing them & creating utility out
of them. Production dept has to first of all estimate the demand &
accordingly production must be done for which arrangement for raw
materials. Finance & provision for selling. It has to be made. Thus
production dept is interrelated with the personnel, finance, marketing
dept. There are collected about 3, 50,000 litter milk from which 3,
20,000 litter milk is used for milk packing & 30,000 litters are used for
making milk products.

There are 1100 registered co-operative societies giving milk to

Baroda Dairy. Baroda Dairy has set up a modern plant for the production
process. It has established its plant in a modern high tech style which
functions nearly 80% automatically.

1. Raw Material Receiving Dock

It is a big open area, where the raw milk is brought from various
societies by way of tankers and cans. The cans are emptied in the milk
tank with the help of tankers and cans. The cans ae emptied in the milk
tank by the way of belt conveyors system and then after the cans are
washed in automatic washing machine. The average number of cans
washed per minute are 5 to 6. Before distilling cans the milk is graded and
weighed. The sample from the can are taken and sent to the laboratory
where they are graded in terms of fats and S.N.F. once the milk is
collected in the tank, the net process will start to separate the fat and
S.N.F from the milk and cash will be separately stored.

2. Pasteurization

The term pasteurization when used in association means

heating treatment by heat treatment and cooling to suitable temperature
before distribution.
After the separation of FAT and SNF the milk is passed through the heat
section of pasteurization and is the very first step of pasteurization. The milk is
boiled up to 74c for 15 seconds in the machine and then very net second it is
chilled at 4 to 6 C instantly. This will lead milk to be cream less that is
3. Standardization

To reduce the fat percentage of milk SMP or skimmed milk is

added and to increase the fat percentage, cream is added. Cost of pouch is
worked out according to the stand of the milk.
After standardization, milk is stored in sios. Sample is taken for analysis of fat,
SNF, acidity MRP test etc. If the result is ok, it is sent to the storage tank. Milk
sample from the same further subjected to analysis prior to packing.

4. Homogenization

It is the process of mixing. Humanizer is used to homogenize milk, butter milk

and flavored milk.

5. Pouch packing Section

There are 14 machines used for packing the milk pouches. The
milk from pasteurization section is restored in the tanks and from there it is
brought to the section by the help of pipelines. Here the machines are
operated automatically giving the bags of 500 ml each. The number of bags to
be filled with the milk can be derived through the regular in machine. An
average output number of bags per hour are 3000 pouches. The department
also consists of the carats watching system and it is also fully automatic.


Brand Name Fat % SNF%

Gold (500ml) 6.08 9.00
Shakti (500ml) 4.50 8.50
Sfurti (500ml) 3.02 8.00
Slim & Trim (500ml) 1.50 9.00


Brand Name Qty.

Surbhi (cow’s milk ghee) 500ml
Surbhi (cow & buffalo’s milk ghee) 500ml
Surbhi (cow’s milk ghee) 200ml

Brand Name Qty.
Goras chhas 500ml
Jeera chhas 200ml
Masti dahi (curd) 200ml
Goras chhas 1ltr


Brand Name Qty.

In Bottle 200ml
In Pouch 200ml


Brand Name Qty.

Rajwadi Kadhi 500ml


The basic raw material that is brought inside the dairy is the
milk. The milk is the only component which is a raw material. As it progresses,
it keeps on changing its forms from milk to curd, buttermilk, flavored milk,
butter, ghee etc. The other raw materials used are synthetic colors, sugar,
gelatin etc.

Different products are manufactured by using different materials. They are :

Products Raw Material Used

Flavored milk Milk (toned), sugar, colors, essence
Buttermilk Curd, water, sour milk
Butter Milk (pasteurized), color, salt, water
Ghee White butter, water
Curd Toned milk, culture
Rajwadi kadhi Butter milk, besan, dhana jeera
powder,green chilly, ginger, salt,
sugar, water.

There are 1122 registered co-operative societies, which supply
milk to Baroda dairy. Baroda dairy ahs set up. its “plant” which
functions 80% automatically and 20% manually.

The stages involved in the production process of various

products are as follows:-

Brief explanation of process and its flow chart

1. Milk collection

Milk is collected two times a day. i.e once in the morning and the other in the

2. Unloading and Grading

Cans are unloaded from vehicles and graded by putting plunger inside the
can and rotate to check whether the milk is in liquid form or lumps have been
formed. If the lumps are observed or if milk has become curd it is not allowed
to pass through the conveyor belt.

3. Weighing and Sampling

Weighing of different milk (cows and buffaloes) of different societies is taken

and recorded in computer. General sample of 100 ml per society is taken for
analysis. 1 ml of Potassium dichromate is added as preservation in sample
bottle before taking sample.

4. Chilling and Storage

Raw milk is chilled at temperature below 14C and passed from filtration in
back type filter. After filtration it gets stored in storage tanks.

There is transferred of cream from pasteurisation section to
butter section. Then cream is pasteurised at 85°c to 95°c for 15
seconds. Then this pasteurised cream is stored for one night. Then it is
turned with help of churner. Then it is again churned after addition of
colour. Afterwards, buttermilk is separated and there is washing with
pasteurised water. Then salt is added and final working is carried on.
Thus, the butter gets ready for packing. It is packed in 100gms
1500gms pack & stored in a cold storage room


Baroda dairy also manufactures ghee. Ghee section is just

attached to raw milk receiving dock (RMRD). First of all white butter is
processed by pre stratification method & clarified fat is collection in
huge ghee kettle it is heated at a temperature between 105°c to 115°c
and again there is clarification at 37°c. Thus, pure ghee gets collected
in a tank where it is stored at a room temperature. Next to the storage
is attached the pouch packing machine. This machine is used to pack
the pouch oh ghee which is of 500 grams or 1 kilogram.

Flow Chart of Cheese


Flow Chart of Curd


For producing Buttermilk, there is addition of maska whey &

sour buttermilk is 30% of the total quantity of curd. Then there is
homogenization e.g. maxing & churning. Afterward, there is
pasteurisation & standardisation. Thus, the curd gets converted into
buttermilk. Then it is packed & stored.


First of all these is addition of sugar in toned milk, which is pasteurised.
Then there is homogenisation out 500psi (pound per square inch). PSI is a
unit that denotes pressure. Afterwards, there is filtration & pasteurisation.
Then it got stored in a tank through pipelines. Then there is standardisation &
addition of colour & essence. Then it is packed in bottle/ pouch of 200 ml.



In a big container, a certain quantity of buttermilk is taken & then

there is addition of basen, dhana-jeera powder, green chilly powder,
salt, sugar, & certain amount of water. Then it is mixed properly and
heated at 100°c till the flow comes up afterwards, there is addition of
turmeric powder. Then, for having “Tadka”, methi, long, taj& limdi are
added in ghee & this mixture is heated at 100°c and then it is mixed.
Thus, to have kadhi, it is heated for 15 to 20 minutes. Lastely, when it
gets cool it is packed in 500ml pouch with the help of automatic
Type of material handling equipment used :

Belt conveyers :

Belt conveyers are used for moving of cans. In the production dept. total 12
this kinds of conveyers machines are there .Two machines for lodging &
watching, two machines for crates watching and 8 machines for pouch

Hand trolleys :

They are used for the movement of crates. Used to load & unload form
vehicles. Transportation of packing material is done by this hand trolleys.

Crates :

They are being used for carrying pouches bottles.

Industrial trucks & tanker :

They are used for the movement of raw material and finished goods. Milk is
brought to dairy by the help of tankers and tempos and finished products are
distributes by the help of trucks.

Pipe line :

This is the useful and important for carrying raw material from one section to
another. There are long pipe lines used by broad dairy covering all sections.

Inventory management for raw materials and finished material :

Raw materials :

The raw material in Baroda dairy is mainly the milk which is perishable in
nature so the dairy procurement & milk product is done.

Finished materials :

As again the finished goods are perishable in nature so there is no need for
finished goods inventory management.

In Baroda dairy the main raw material is milk & it is perishable in

nature so there is daily procurement & production of milk products. So
in the Baroda dairy there is no need for raw material inventory Mgt. the
same applies to finished goods also.


At Baroda dairy the entire machine are maintained in the best

manner. The machines are checked everyday before the production
gets starts. Also the machines are repaired annually to ensure the
better operation of machine. If at any time there is break down then the
machine is repaired immediately.


Baroda dairy has a separate quality control department. The

production manager is finally responsible for quality control. Quality is
checked at each and every stage i.e. from procurement of milk to final
packing tests are performed.

For further surety of quality GCMMF (Gujarat co-operative milk

marketing federation.) send one quality control expert & also the Govt.
sends one AGMARK chemist at the Baroda dairy.


In Baroda dairy products like milk, ghee, buttermilk, etc. are

produced which are perishable in nature & can only be stored in cold
storage. Therefore, in the premises of Baroda dairy there is one cold
storage where temperature is maintained as per the requirement.

Storage and production :

The store department fulfills the requirement of production department. When

production wants raw material other than milk, then give information to store
directly. The storage department performs the activity of purchasing it and
gives it to the production department.

Purchase and production :

There is no direct relationship. The production collects items require from

stores & stores department receives it from purchase so there is immediately
in from of stores. Production department can give guidance to purchase.

Production and dispatch :

Direct relationship direct relationship means the dispatch department tells the
next day requirement works accordingly to fulfill those requirements.

Production and engineering :

The engineering unit is the servicing unit for production department. The easy
and suitable source for heating is stem.

Micro – Motion study on crate washing machine :

Name of the equipment : crate washing machine

Use : To wash the crate

Workers needed : 6 men

Operator : 1 man

Type of machine : Automatically.

Material handling equipment : Chain conveyor belt, hand trolley.

Man – machine process :

Two workers take the crate near the crate washing machine.

One worker put crate on chain conveyer.

Chain conveyer move ahead with crate & machine starts to wash the crate
with water.

The machine washes the crates with simple water, detergent & hot water &
then, they ate taken again.

The HR department in the organisation can be compared with

the heart in the human body. It is a very important part of every


The major functions of “Human Resource Department” are

recruitment, selection, training & development, welfare activity,

performance appraisal, maintaining personal records, grievance

handling, wages & salary & many more things.


The major work of production is carried out by machines, but more than
30%of the production work is done manually. Moreover a larger manpower is
also require to administer the whole process of the organization. So, Baroda
dairy has recruited large number of manpower. To control this manpower the
separate time keeping department is established.
Here, records are kept of worked working time. In order to reduce
administrative cost, to maintain efficient scheduling and to reduce time
wastage time keeping department has adopted different types of systems to
record the working time of the employer at different level. Due to this effort the
accountability, responsibility and productivity of employees has been

Two types of time keeping department systems are adopted in dairy.

1. For managerial level

Register records are kept and also punch card system is used in time
2. For worker level
Punch card system is used to register the attendance of worker.
Other functions of time keeping department
• Preparation of salary slip
• Calculation of allowances
• Leave matters
• Dealing with employee problem related with salary, leave etc.
Time schedule of work for employees
For Officers : - 10:15 am To 6:00 pm.
For Workers : - 1st Shift- 8:00 am To 4:00 pm.
2nd Shift-4:00 pm To12:00 pm.
3rd Shift-12:00 am To 8:00 am.
Sufficient breaks are given to the workers as well as employees during
their working hours

There are five units that are covered by “Baroda district co-operative
milk producers union ltd.”. All the units have different strength of employees.
The total number of employees is 1554 and it is divided as follows:-

Unit No of employees

1) Baroda dairy – Baroda 968

2) Sugam Unit- Baroda 348
3) Milk chilling centre-Baroda 120
4) Cattle feed factory-Itola 086
5) Veterinary sub unit- Savali 017
6) Veterinary sub unit-Dabhoi 015


At Baroda dairy, present manpower is very well. Manpower

planning activities in Baroda dairy consists of following:-

• Forecasting future manpower requirement.

• Anticipating manpower problem.
• Making an inventory of present manpower planning resources &
assessing the extent to which these resource are employed
• Planning the necessary problem of recruitment, transfer,
promotion, compensation & incentives.

Recruitment is a process of searching for prospective

employees & stimulating them to apply for the job in the org.
Recruitment of an employee is done on the bases of “Human
Resource Planning” carried by Baroda dairy Mgt.
At Baroda dairy recruitment is done through both sources i.e.
internal as well as external sources.


An internal source refers to the sources which are within the

organisation. This type of sources includes transfer, promotion,
deputation, recommendation by another employee etc. A circular is
passed when there is a post vacant due to retirement, death or any
such thing.


An external source refers to recruitment that is from outside the

organisation. It includes recruitment by way of advertisement, recruiting
graduates and post-graduates from educational & technical institutes,
recruiting people from employment exchange agencies etc. At Baroda
dairy, advertisement is the main source of recruitment.

Baroda dairy has a systematic procedure for selection of

candidate. It is different for managerial and non-managerial post. The
selection procedure is as follows:-


A candidate is asked to fill the application form in his

handwriting. The application form of Baroda dairy contains questions
relating to candidates personal bio-data, education qualification,
technical & professional Qualification including space to fix his or her


It is the most widely used method of selection. At Baroda dairy

there is a panel of interviewers that includes the managing directors,
chairman, personnel manager and export from relevant department.


It is compulsory for technical staff, especially for staff working in

production department. A candidate should be certified fir by the
medical officer. If the medical officer of the Baroda dairy certifies him
unfit physically or manually he is not absorbed.

After the candidate has passed the entire necessary obligation

then the managing director or the personnel manager of the Baroda
dairy approved his placement. The selected candidate is asked to work
on a probation period for one year on a fixed salary no extra allowance
is given to him during this period. A bond is signed for a minimum of 3
years. If the employee leaves the org. before that period then he has to
repay three months salary to org. if employee is found office after the
probation period then he is absorbed on permanent basis.


For the induction purpose, in the beginning, there is visit of

Baroda dairy & the new employee is informed about the history, growth
& development of Baroda dairy.
Then he is explained what is expected of him & for this he is
explained the rules, regulation, policies & procedures that directly affect
him. He is made aware how his job fits into the overall operation of
org., his own duties and responsibility, & to who he should look for
when he was any problem. The last stage in the induction process is
the introduction stage. Here the new employee is introduced to
different department heads that further introduced to the employees
working in that dept.

According to section 2(b) of the trade union act of 1926, “A trade

union is a combination of persons, whether temporary or permanent,
mainly for the purpose of regulating the relation between workers &
Mgt. and for imposing restrictive condition on the conduct of any

At Baroda dairy, there are two unions. One for the workers &
another for officers which are working for the following:-

 To get adequate bonus

 Strive for better working condition.
 To secure better pay scale for employees in keeping with the
prevailing standards of living in the country.
 To work for welfare and development of workers educational
facilities and group benefit scheme for them.


1) Registration Date :- 6th July, 1999
2) Registration No :- G 5952
3) Starting Date :- 26th February, 1999
President, Vice president, Secretary, Joint Secretary, Treasure this all
seats are changed time to time so, no specification.



Performance appraisal is a systematic evaluation of work

performed by the department head who have desire to know the
employees performance. The performance being measured against
factors such as quality & quantity of output, imitativeness, leadership
ability, supervision, versatility & health.

The main objective of the Baroda dairy for the preparation of

appraisal report is as under:-
 To effect promotion based on competencies and performances.
 To evaluate the working of probationary employees after
completion of their probation period.
 To know the training & the development needs of the
 To let the employees know where they stand.

There are printed forms, which are kept by the personnel department
respective heads of the dept fill these performance appraisal forms.

Training is the organised procedure by which people acquire

knowledge & skill for a definite purpose. It is the act of increasing the
knowledge & skill of worker doing a certain job.

At Baroda dairy training is given twice a year to the employees.

First of all the employees who have need of training are selected & are
trained by practical & theoretical lecture at MANSI INSTITUTE OF

The record book is maintained which includes the record of the

trainee’s performance. If it is not improved then further training is given.

“Training” is the act of increasing the knowledge & skill of an

employee for doing a particular job & the term “Development” refers top
the nature & direction of changed induced in employee through the
process of training & education. Development refers to the whole
complex process by which employee as individual learns, grows &
improves his abilities to perform a wide variety of jobs.”

At Baroda dairy there are two ways in which training is imparted

to the employees:-

It is the type of training where the employees are trained within

the dairy. The head of the concerned department is responsible.


There, the employees are sent outside the org. to increase their
knowledge & skill. The external training schedule & further procedure
at Baroda dairy is explained as under.


The dept. head identifies the area in which the present skill of
the employee is supposed to be enhanced. It has to be informed to the
personnel & administration and for this, there is a form to be filled.


The personnel & administration department maintain a record of

the employee who undergoes training. This record consists of their
name, department, payroll number, the reason for undergoing training,
the place where they are going for training and the cost incurred by the
org. during the training. I.e. the cost incurred in the logging, boarding
training fees etc.

After the completion of training the employees has to fill in and

submit a feedback form. The information in the form consists of the
place, where the training was conducted, whether the time duration of
the training was sufficient or not, whether his facilities were proper, how
the training would be beneficial to them, and how it will be implemented
at the work place.


After three month of completion of training the personnel &

administration send “training evaluation form” to the head if employees
who got trained. The head of the dept. fill this form & return it to the
personnel & administration dept. from this evaluation one come to
know how the work practices, before and after the training, have
improved and how it has benefited to the org.


 Personal hygiene
 ISO 9001 training (quality base)
 ISO 14001 training (environment base)
 Safety training
 Machine operation training for operator
 General awareness training.

Promotion and transfer forms the crucial part of and org. Baroda
dairy has its own policy for this.


Promotion is the advancement of an employee from one job

level to a higher one, with an increase in the salary. Baroda dairy does
not have any fixed promotion policy. But generally, time scales
promotion policy is followed. Officers & other staff get the promotion
after 10 years. While workers get the promotion to upper step after 15
years. It also provides promotion on the basis of the employee’s
competency. The promotion could be in the form of increment in the
salary or change in the designation or change in the grade. There are
in all 14 grades at Baroda dairy.


In case of voluntary transfer an employee has to give an

application to the personnel manager. This application contains the
reason for transfer and the place where he / she want to get
transferred. If there is any kind of need for transfer then it can be done
only after consulting the personnel manager and managing director.
Generally, the transfer is within the department. Transfer to other
department is rare at Baroda dairy.

The employees’ grievance is for the following reasons:-

 Demand of individual wage adjustment

 Complaints about job satisfaction.
 Transfer to other department.
 Undesirable work etc.

The Mgt. could have the following grievance against


 Indiscipline at work.
 Non –fulfilment of the contract
signed between Mgt. & workers of the trade union.

In this co-operative sector the grievance handling

procedure is as follows:-

 If the workers has any complain, they will send the written
complain to their supervisor. He forwards this complaint to the
labour officer. If there is no solution to the problem then it
passes to the “Managing Director”.

Salaries are paid on the monthly bases while wages may be

paid on , monthly, daily or hourly bases. At the end of the month
personnel dept. send order to time keeping officer to submit the file of
workers attendance and on the bases of this the wages / salaries of
workers / employees is decided.
The personnel dept. sends the details of wages & salaries to the
accountants dept. for making payment. The accounts dept. pays salary
to the office staff on 5th of every month by cheque and to the workers
on 7th of every month by cash.

1. Dearness Allowance :

• 115% as per consumer price index of A’bd Textile declared every

month (For All)

• Calculated on 31 Days of every month

2. Additional D.A.

BLOCK Wage Grade Additional D.A. (Rs.)

BLOCK – A 16100-27850(A-2) to Rs. 1350/ - p.m.
6900-13800 (A-5)
BLOCK – B 5175-9525 (B-1) to Rs. 1150/ - p.m.
3220-5620 (B-4)
BLOCK – C 2530-5720 (C-1) TO Rs. 1000/ - p.m.

3. House Rent Allowance

Wage Grade H.R.A ( Per Month)

OFFICERS : 14000-25750(A-2) to 15% of Basic
2800-5200 (B-4)
2530-5720(C-1) to 2070-4740 (C-2) Rs. 260/ or 15 % of Basic whichever
is higher
1675-3765(C-3) to 920-1705 (E-2) Rs. 250/ or 15% of Basic whichever is
4. Shift Allowance : Employees working in plant & Gen. Shift W.G. Of
Rs. 920-1705 (E-2) to 2530-5720 (C-1)

Allowance Shift
Rs. 40/- Gen & First
Rs. 45/- Second
Rs. 50/- Third & Off reliever
Rs. 100/- For those workers who are working in
Marketing Dispatch Department &
performing night duty for continuously
45 days.

5. Conveyance Allowance :

BLOCK Wage Grade Conv. Allowance (Rs.)

BLOCK – A 16100-27850A-2) to Rs. 750/ - p.m.
BLOCK – B 5175-9525 (B-1) to Rs. 650/ - p.m.
3220-5620 (B-4)
BLOCK – C 2530-5720(C-1) TO Rs. 550/ - p.m.

6. Attendance Allowance : Rs. 300/- p.m. ( For All)

-Minimum 22 days actual attendance


7. CCA/Rural Allowance : Rs. 30/- p.m. (For All)

8. Educational Allowance : Rs. 100/- p.m. (For All)

9. Dust Allowance : Rs.200/ - p.m. (For All employees working at

10. Washing Allowance : Rs. 30/- p.m. (For workers working at other

11. Village Allowance : Rs. 20/- p.m. (For other units)

12. Conveyance Allowance : Rs. 2.10 per K.M. (Those who are engaged

in Field duty & using their own vehicle)

13. Cash Allowance

Designation Cash Allowance (Per Month)

Sr. Cashier Cum Asst. Rs. 150/-
Cashier Cum Asst
Salesman (Marketing)
Helpers at Milk Bar

Officer / Jr. Officer (Cash) Rs. 200/-

14. Key Allowance : Rs. 200/- p.m. (For holding responsibility of cash

15. Field Duty Allowance : Rs. 500/- p.m. (For Veterinary Officers only)

-Minimum 20 days field duty required

16. Centre Allowance : Rs. 500/- p.m. to centre in-charge (Dabhoi,

Bodeli, Savli)

17. Deep Freeze Allowance :Rs. 150/- p.m. (For workers working in cold

store Sugam)
18. Special Visit Allowance : Rs. 15/- per visit (6.00 a.m. to 6.00 p.m.)

Rs.20/- per visit (6.00 a.m. to 6.00 p.m.)

Only for Vet. Officers for performing duty
After/before duty Hours
Rs. 10/- For performing AI to AI supervisors.

19. Travelling Allowance : As per T.A./D.A rules.

20. Medical Reimbursement/Allowance

• To those who are not covered under ESI

BLOCK –A 16100-27850(A-2) to Rs. 12000/- Per Year

6900-13800 (A-5)
BLOCK –B 5175-9525 (B-1) to Rs. 9500/- Per Year
3220-5620 (B-4)
BLOCK –C 2530-5720 (C-1) to 920- Rs. 8000/- Per Year
1705 (E-2)

21. Leave Benefits

Type No of Leaves Qualifying Remark

Per Year Conditions
Casual Leave 10 All Permanent Accumulated upto
Employees 60 days
Can be availed
half day also
Earned Leave 36 “ Can be encashed
Sick Leave 12 Those who are Accumulated upto
not covered 150 days
under ESI Encashed after 90
days leaves in
2nd & 4th Saturday Only to Officers &
Staff engaged in
Office & Admn.
Festival 14 Employees works
Leaves/Public on these days
Holidays leave will be
made available to
22. Encashment of Annual Leave: Min of 20 leave can be encashed and
thereafter in the multiple of 5 and these leave can be encashed thrice
in a period of 1 year.

(Basic Previous month’s D.A. Add D.A)

23. Provident Fund/Family Pension : As per statutory requirement

24. Super Annuation : Employees Contribution : 50% of one month’s basic

Salary per Year.
Employer’s Contribution: One month’s basic salary
Per year. I.e. 100%p.a
25. Group Insurance Scheme : those who are covered under the Super
Annulations scheme are covered under
Group Insurance Scheme of LIC.
Benefits: In case of death; 2 month’s basic
Salary outstanding Service of an employee.

26. E.D.L.I : Sum assured Rs. 72000/; per PF member.

27. Group Personal Accident Insurance: Employees who are not covered
under ESI, are covered under the GPA Insurance Scheme by the
Union (Inc. Sub units-Itola,Bodeli, Dabhoi, Savli.)

Benefits under GPA :-

In case of Death – Five times of the annual Gross Salary
The accident covers 24 hours risk anywhere in India whether an employee
is on leave or on tour or on duty. The coverage provides benefits in case
of death, loss of limbs, permanent total disablement, permanent/partial
disablement/temporary total disablement.
28. Group Mediclaim Policy :

Sum insured Rs. 1,00,000 for staff & workers of Baroda Dairy and other units
whose Gross Salary is greater than Rs. 10,000 p.m. & for staff and workers of
other Units those whose Gross Salary is less than Rs. 10000p.m.
Hospitalization and Domiciliary Hospitalization benefits

29. Workmen Compensation Policy : W C Policy for Apprentices, Trainees

&Casual Workers.

30. Petrol Allowance : 32 litre Petrol 1 litre Oil – Bill is reimbursed

Rs. 150/p.m Maintenance Allowance

(to Mkt. Insp/Supervisor)
31. P.T.A : Rs 90/- per day/per dist.( Max 20 dist. )

Rs.40/- per day in case of Union vehicle.

32. Vehicle Loan : (Scooter/Vehicle loan)-As per Rules & Regulations of
Vehicle Loan

 For Jr. Officer & Above – Rs. 50,000 max for New Vehicle & Rs.
25000/- for old Vehicle

36 Installments – 6 % Interest – Once during the Service

 For field Employees - Rs. 50,000 max for New Vehicle & Rs. 25000 for
Old Vehicle 36 Installments - 6% Interest – Max 2 times at an interval
of 4 years service.

33. Car Loan : As per Rules & Regulations of Vehicle Loan

 To Asstt. Managers & above – Maximum Rs. 2,00,000/- - 60

Instalments-6% Interest. Minimum 15 Yrs service is required.

34. Canteen Facility :

Runs on contract basis
 Can avail Coupons worth Rs. 500/- ( Out of which Rs. 200- deducted
from the Salary of an employee)

 If not availed coupons Rs. 250/- p.m. given in the salary

-Rs. 250/- p.m. for all who are working at other Units, Milk Bars & Cash
collection centers (Outside Dairy Premises)
-Subsidy given by the Union
-Building, Electricity, Furniture & Crockery provided by the Union.

35. Uniform : - Three pairs to Workmen per year

Two pairs to staff per year

Stitching Charges Rs. 150/- per year

36. Shoes : One pair per year

37. Caps : One/Two per year

38. Transfer Exp. : In case of transfer (On account of Admn reasons)

- One day leave with pay (transit Time)

- Union’s own Vehicle arrangement or reasonable

transport exp. will be reimbursed.

39. Medical Help : Upto Rs. 40,000/-

- In case of treatment of Heart Surgery, Kidney

Transplant and Cancer, angioplasty, Brain Hamrage
on production of authentic documents.

At Baroda dairy personal records of each employee is

maintained right from his application for job till his resignation or
retirement. The different documents are properly arranged in a
separate file:- (such as)
 Application for the job.
 Bio-data.
 Application order.
 Confirmation letter.
 Appointed letter.
 Interview panels decision letter.
 All the other information relating to the employee
during the service period.


 Full name
 Father’s name
 Present address
 Permanent address
 Branch dept
 Birth date
 Age
 Date of joining the org.
 P.F A/c No.
 E.S.I policy No. ( ESI = Employee State Insurance)
 Qualification
 Wife’s name
 Details regarding children


Baroda dairy employee state Insurance Corporation is Govt.

Corporation under the employee state insurance Act 1948. Baroda
dairy has adopted this scheme on the 22nd February, 1969. This act
provides benefits to its employee in case of sickness, disablement,
maternity, medical help etc. Baroda dairy has adopted ESI scheme for
its workers, under this act only those employees, whose gross salary is
less than Rs.6500/- pm are converted about 6.5% of salary is kept for
ESI scheme out of which 1.75% is deducted from the salary of the
employee and the dairy Contributes the rest 4.75%. This collected
6.5% is deposited in the “Govt. Kacheri”. Deduction statement is also
prepared every month and written statement is also submitted to the
“Govt. Kacheri” after every 6 month.
The local office of ESI is at Gorwa, pani-gate, sayajigunj,
Warasiya, Makarpura, Nandesari etc. local office send information to
the head office.
Finance Department


The first & foremost requirement of any business is finance.

Finance is required in each & every stage of the business. Business is

nothing but a process of making money through money. So to make

money you need money. It can be acquired through various sources.

After the acquisition of finance, the work of utilisation beings. The

finance dept. has to deal with not only the procurement of finance but

also with the proper utilisation of it. Finance is the basic requirement for

purchase of assets, production of goods, marketing, selling, etc. The

finance dep. Take the decision regarding financial matters. Thus, we

can say that finance dept. is one of the most important dept.



“Planning” is one of the most important principles of Mgt. the

success of the org. depends mainly on proper planning. The proper
estimation of the requirement of funds, determination of sources from
where the fund will be raised and its proper utilisation can be termed as
financial planning. The finance manager has to make plan for long term
and short term capital equipments.
Financial planning includes the preparation of projected profit &
loose account, fund flow statement & balance sheet. Estimation of
growth in sales is very important because from that the need of funds is
decided. As due to rise in sales there is need of more assests. As more
investment has to be made for additional plant & machinery to raise its
capacity to produce. Additional current assets are also required to
products & sell more quantity.

Short term financial planning chart

As explain in the chart. We can understand that customer buys milk

and pay price for it to retailers. All the retailers send it at cash collection
centre. Cashier at the respective centre send the cash at the dairy the same
to the respective branches of the villages. Thus we can say that it is the bank
which makes collection and distribution.
Growth in sales is an important objective of most firms. An increase in
a firm’s market share will lead to higher growth. The firm would need assets to
sustain the higher growth in sales. It may have to invest in additional plant and
machinery to increase its production capacity. In summary, the financial
planning process involves the following facts:-

 Valuating the current financial condition of the firm.

 Analyzing the future growth prospect and option.
 Appraising the investment option to achieve the Growth
 Projecting the future Growth and profitability.
 Comparing and choosing from alternative Growth plans and financial option.
 Measuring actual performance with the planned performance.


Baroda dairy does not raise finance for short term as all the
requirement for short-term finance are fulfilled by the internal sources
(i.e. reserves & surplus). Mostly, finance is raised from long-term
sources of finance. All the requirement of finance is fulfilled either by
issuing equity shares or by taking loan from “National Dairy
Development Board”. The repayment of loan is done in equal
instalments, the amount is predecided. Generally, 6% interest is
charged on the amt. of loan.


Basis of preparation of financial statement:

The union generally follows mercantile system of accounting &
recognises significant item of income and expenditure on accrual basis.
Sales are recognised on delivery. Sales shown are excluding excise
duty & taxes.

Fixed Assets:-
Fixed assets are valued at cost

Depreciation on fixed assets is provided on written down value

Investments are stated at cost.

Valuation of inventory:-
Stock of raw material. Packing material, stock of stores & spares
are valued at cost, finished goods are valued at lower cost or market value
(excluding excise duty and taxes). Semi finished goods are valued as certified
by managing director.

Foreign currency transaction:-

Transaction denomited in foreign currencies are normally

recorded at the exchange rate preventing at the time of the transaction.

Excise duty:

Excise duty has been accounted on the basis of payments made

in respect of goods cleared.

Retirement benefit
Provision for graduity liabilities of employee is made on the
basis of actual valuation as provide under the group graduity cum life
insurance policy taken by the union from LIC, premium paid where of is
charged to revenue in each year.
Provision for encashment of leave entitlement is made on accrual basis
in accordance with accounting standard of the institute chartered
accountant of India.

Budgetary control system :

Budget period :

As all the production items are perishable, their sales are done quickly, so the
budget period is 1 month.

Principles budget factor :

Baroda dairy does not consider any type of budget factors for preparing

Budget center :

Revenue & cost both are taken the budgets.

Accounting Method/ system :

In Baroda dairy the financial department uses the “Double entry system” of

Software used :

The Baroda dairy the software of “ERP” developed by “ESS”.

It means enterprise resource planning.

Computer software to Assist in the finance management :

In Baroda dairy the finance management uses the software named “ Oracle
Development 2000” .

Taxes :

Taxes are paid on candy, kulfi and sweets etc. there are no taxes on
dahi, milk and mava. So it includes taxes such as income tax is continued in
the income tax act 1961, which extend to the whole of India became effective
from first day of April 1962.

Baroda dairy provide two types of taxes :

• Direct tax

• Indirect tax

Direct tax :

• Baroda dairy has directly paid an income tax to the government.

• Baroda dairy pay an advance tax in four installment basis.

Indirect tax :

• Baroda dairy pays 12% tax on sales of the commodity. Baroda dairy
second types of its rate is 8% on the sales of butter & other various

• Baroda dairy paid 16% of tax on cost production taxes have been in
monthly basis as well quarterly basis.

Working capital management :

• Working capital management is concerned with managing assets and
current liabilities so that optimum level working capital should be

• Gross working capital.

• Net working capital.

• Management of cash :

• Cash is the most important current assets for the operation of the
business running on a continuous basis.

• A major is to maintain a sound cash potion. The company maintains

cash & bank balance according to the present requirement of the

Management of inventory :

• Inventories are stock of product of an organization.

• Purchase, production and sales department are mainly concerned with

the management of inventors.

Receivable :

• Receivable are also known as trade credit.

In modern business, services are sold on credits by this method the firm
protects it self from competition an attracts the foru able item.

Long term & term finance :

Equity share :

Capital is raised by the co-operative society and as it is permanent and given

back to the co-operative society.

Permanent capital :

There is not any type of redemption period for equity share. Equity fund is
given only after when is going in the liquidity state.

Voting rights :

All the share holders are given the voting rights select the directly ny giving
the right vote.

Submission of periodical return to the bank :

All the installments to be paid in the repayable the loan taken are decided by
NDDB and Baroda paying has good position, it repayable the loan amount
more than its installment amount.

Capitalization means value of all capital regularly employed in
the business. It is generally used to refer the sum of the outstanding stock of
fund obligation which may represent wholly fixed value.


1. At the time of corporation of dairy.

2. At the time expanding the existing co-operation.
3. At the time reorganization.

Baroda dairy is a co-operative sector. So all the, village society

of Baroda dairy collectively has to take money from their representative
village society. Baroda dairy issues equity shares of Rs.100 as on 31st,
March 2008 The total amount of equity share capital was
Rs.5,00,00,000, reserves and other fund was Rs.9,14,88,294 and
Rs.1,96,19,014 long term loan from NDDB.
Profit record of the last years.

2000-2001 32, 20,354

2001-2002 39, 55,670
2002-2003 43, 64,244
2003-2004 47, 16,598
2004-2005 50, 80,692
2005-2006 53, 63,500
2006-2007 59, 91,023
2007-2008 75, 93,353
Therefore, we can say that Baroda dairy is over capitalization
assists earning are less than its capital investment.

Capital structure of an organization refers to procurement of
capital. capital structure including all the financial. Thus capital
structures of an organization show (NOK) or through which sources
Baroda dairy is a co-operative society and its shares are out
listed in stock exchange. However the shares are purchased by the
milk societies who are easily become its members. These societies are
not paid dividend but get prices difference.

Particular YEAR
1. Authorized share capital 5,
2. Subscribed share capital 4,
3. Reserve & other Fund
a. Reserve Fund 1,
b. Other Fund 7,
4. Loan From NDDB prospective plan 1, 96, 19,014/-

The turn over of the company since last five years is given below

The turnover of Baroda Dairy had constantly grown since last five
years. The turnover is being given in the following table.
Year Turn over achieved
2001-02 203.40 Crores
2002-03 230.00 Crores
2003-04 232.99 Crores
2004-05 257.84 Crores
2005-06 269.84 Crores
2006-07 300.25 crores
2007-08 339.18 Crores

If relationship between various related items in these financial

statement are established. They are provided useful clues to udge
Accuracy the principal healthy and ability of business to make profit
these relations between two related items of financial statements are
known as ratio.
The use of ratio has become increasing popular during last few
years only. Today ratio has given such an important that anybody
connected with the business terms to ratio.


This ratio includes the degree to which the selling of goods per
units may decline without resulting in losses from the operation point of
view. If department will also be ascertaining behaviour the average
percentage of mark up on the goods it’s maintained.

There is no more for judging the gross profit ratio, therefore the
evolution of the business on its basis is a matter of judgment, and however
the gross profit should be adequate to cover operative expenses and to
provides for fixed charges, dividend and building of reserved

Gross Profit * 100

Gross Profit Ratio = sales

640549853 *100 = 21.33%

2006-2007 = 3002469646

792265000 *100 = 23.36%

2007-2008 = 3391700000

847600000 *100 = 22.84%

2008-2009 = 3710700000


This ratio usually expressed a percentage of gross profit as

sales. A ratio of 22.84 shows that for a sale of every Rs. 100/- a Gross
margin of Rs. 22.84 is available from which operating expenses of
business are to be recorded. The ratio is increasing when gross profit
is increasing more than sales in terms of percentage. The increase in
gross profit ratio is a sign of good management and growth. A low
gross profit margin ratio is sign of higher cost of good sales. Here, GP
ratio of Baroda Dairy is increasing year by year.


The ratio is valuable for the purpose of training the over
profitability of business and shows the efficiency or otherwise of
operating the business. It is the reserve of operating ratio.

Net Profit * 100

Net Profit Ratio = Net Sales

59, 91,023 * 100 = 0.20%

2006-2007 = 3002469646

75, 93,353 * 100 =0.22%

2007-2008 = 3391700000

8355200 * 100 = 0.23%

2008-2009 = 3710700000


This ratio is indicates what portion of sales revenue is left to the

proprietors after all operating expenses are met. This ratio shows what
net earnings of the owner as against the sale of 100Rs. Here, the net
profit ratio is 0.23%. It means that Baroda Dairy is earning 0.23Rs as
against sale of 100Rs. Here, increasing trend of Net profit ratio shows
sign of growth.

Current ratio is also as working capital ratio as it is a measure of

working available at a particular time. The ratio is obtained by dividing
current assets by the current liability. It is a measures of short term
financial strength of the business will be able to meet its current
liabilities as and when they nature.

Current Assets
Current Ratio = Current liabilities.

480339525 = 0.999
2006-2007 = 480809459

558905325 = 1.008
2004-2005 = 554139322


The current ratio measures in the solvency of the company in

the short term. The constituents of the current assets are as important
as the current assets themselves. A high current ratio will have
advance impact on the profitability of the organization. Here, the ideal
ratio is 2:1. But Baroda Dairy’s current ratio is 1.008 it indicates the
under-utilization of Assets.

There is a provision of dividend distribution Baroda dairy is a co-

operative body and not a public limited company. If profit carried, it is
distributed as price difference in ratio of milk supply of Baroda dairy
keep balance. Profit distribution of Baroda dairy as per co-operative act
and by laws.



Baroda Dairy Is A Co-Operative Organization. It Does Not Issue

Right Or Any Other Public Issue. Therefore There Is No Question Of
Any Bonus.
Deposit from milk societies and staff are invited share of Baroda
dairy. Baroda dairy has fixed deposits from mandals about 850 mandal
has fixed deposit of 2 to 3 crores.
“BARODA DAIRY” does not have any other source of raising
fund from its profits. For any undertaking it is financial by NDDB or self


Baroda dairy is a special unit so they require long term
requirement NDDB gives long term loan at the interest rate of 12%.

The organization does not sell his share in the stock market
instead of he gives his share back to the union.

Shareholders cannot sell his share in the stock market instead

of he gives his share back to union.

It issue equity share to the prospective member whenever they

decide to buy a share.

The distribution of profit is done on the basis of govt. less & sub
levels. Because of the regulation GPS, financial leverage has no score.
Marketing Department

Every organisation whether big or small needs to have a

marketing department. Marketing department serves as an important

part of an org. Which bring revenue in the business. It depends mostly

on the marketing dept. as to how they sell the final products & creates

demand for it. Baroda dairy is having a full fledged marketing dept.

where all the functions related to marketing are performed. As a part of

marketing strategy Baroda Dairy has increased its Morning milk

centres to1078, full time centres to 1322, and franchisee to 67 from 56.

Baroda dairy’s Sugam plant also introduced 7 new products this year.

At Baroda Dairy, the market division set up a team which surveys

and researches into the need of the customers. When Baroda dairy launches
any new product it questions consumers that what they require in their
product. Baroda dairy also researches about its new introduced product


Marketing research may be defined as scientific & controlled

process of gathering non-routine information regarding the product &
its market condition. It helps the Mgt. to solve many problems.
Marketing research concentrates on the study of products
planning & development, pricing policies, effectiveness of personal
selling, advertising & sales promotion, distribution system, marketing
strategies, market competition, buying behaviour & attitude of
Marketing research is carried out periodically with the help from
the students who approach “Baroda dairy” for industrial training. Survey
is conducted by the students doing B.B.A / M.B.A under the guidance
of “marketing dept”. At the end of the survey, the results are verified &
conclusion is abstracted.


The whole city of Baroda is the target market for Baroda dairy.
Also the town of Baroda city is the target market for the Baroda dairy.

Baroda dairy has 80% market share. It is market leader. It is due

to the quality and variety of milk & milk products which are sold at
reasonable price.

For the milk, the average daily sale is increasing constantly. It is
clear from the following figure:-

YEAR Avg. Daily Sales (litters)

2000.2001 2, 46,000
2001.2002 2, 63,000
2002-2003 2, 76,000
2003-2004 2, 82,000
2004-2005 2, 92,219
2005-2006 3, 06,817
2006-2007 3, 18,734
2007-2008 3,31,740


A “product” is a tangible thing that has capacity to satisfy human

needs. The “product” forms an important part of marketing mix. If the
product fails to satisfy consumer there will be no effect of additional
cost incurred on marketing the products. Before launching any new
product or before having change in product mix, a survey is carried on
to know the view of consumer. e.g. during one survey it was found that
the consumer were in a need of milk with more fats. So, after proper
analysis by the marketing dept. and with the concerned from
production dept. milk having more fats was made available to the
consumer. It is sold under the brand name “Amul gold”.

It can be defined as “any paid form of non-personal presentation

& promotion of ideas, goods & services by an identified sponsored. It is
a means for mass communication and an impersonal salesmanship for
mass selling.”

Advertising is a major promotional tool. It has following strengths as

a promotional tool:-

1. It offers a planned & controlled massage.

2. It can influence many people / prospects at a low cost.
3. It can reach to the prospects that can not be approach easily by
4. It assists in the introduction of a new product in the market.

Baroda dairy does not have to advertise on a large scale for its
products because most of the people are aware of the products
produced by the dairy. In fact, the products are of daily used and they
are so popular that there is little need for advertisement.

The different media used for advertisement by the Baroda dairy

1. News paper(local)
2. Radio
3. Road side hoardings, bottom line advertisement on television.

Baroda dairy enjoys the position of market leader and it has

satisfactory sells, so there is no major need of sales promotion but, whenever
any new products is launched in the market it is sold at a introductory price.
i.e. price less than the normal price. Baroda dairy does not give promotional
schemes in its entire product. It gives promotion in chhas, where on buying of
60 packs of masala chhas take 10 packs free. This is due to product in the
introduction stage. Dairy also gives cash discount in its entire product. Usually
are time of featival days.
Apart from above description the dairy provide incentives in form of
commission. It described as follow.

• 30 paisa commission as road side commission of milk/litter.

• 42 paisa is to fall time as their as their electricity is consumed for whole


• 20 paisa commission of flavored milk / 200ml.

• 50 paisa commission of geera chhas / 100 ml.

Instead of all this is one scheme for masala chhas as it is in introduction

stage. 10 packets free purchasing of 60 packets of masala chhas.

Dairy give incentives on each pouch sold. This is another promotion effort
done by dairy.By inviting school children, house wives and other focus group
to dairy and conducting on effective awareness program by focusing on milk
processing pasteurization, chilling clarification and homogenization.

Now in a mall culture Baroda Dairy’s products are also available

in mega malls like Spencers, Reliance fresh, More mega store etc.

At Baroda dairy the market segmentation is done in several

ways for various products. But, for the plain milk there is no
segmentation and it is marketed & sold all over Baroda. Whereas, for
flavoured milk & other products there is geographic and demographic
In geographic segmentation the flavoured milk is distributed
from the “milk bars” located at the famous and mostly crowded areas of
the Baroda. For e.g. Kamati baug / sayagi baug, raopura, fatehgunj,
outside the dairy, Kareli baug etc. But the most important place where
there is highest demand for flavoured milk is the “Railway station”.
The demographic segmentation means dividing the consumer.
Market in terms of age, sex, family, income, occupation, etc. At Baroda
dairy, it is done by having “milk bars” near schools & collage, as the
major consumers for dairy products are children any young people.

One level distribution system is managed at Baroda dairy for all
the products excepted ghee. A one-level channel contains one selling
intermediary, such as retailer. Products like milk, flavoured milk, curd,
rajwadi kadhi, chhas etc. One level system is maintained where there
is only a retailer between the manufactured and the final consumer.




The durability of milk is only for 72 hrs. So the distribution has to

be such that milk is delivered to the final consumer before it gets
spoiled. Hence, there is only one mediator between the manufacturer &
the final consumer.

For the milk distribution there are morning & evening booths &
the full time centres, which work as per the orders from Baroda dairy.
The morning booth centres have a short span of working from 4:00am
to about 7:00 am but they also have a major chunk of sales as
compared to the full time centers. About 80% of the sales are through
the morning booth and the rest 20% are by the evening booth s as well
as full time centers. Now this retailers are stared the home delivery to
boost up their sale. They have a coupon system where in the coupon
are issued to the customers and milk is delivered against it.

The distribution system at Baroda dairy is very systematic. The

vans take their particular routs & deliver the crates to the morning
centres. While returning, these vans deliver the milk to the FTC and
collect the empty crates from the morning centres.
There are about 1078 morning centres, & evening centres, 322
full time centres and 67 franchisee. In all there are about 114 routes for
morning centres, 3 routes for evening centres & 20 routes for afternoon
centres. Baroda Dairy also providing milk through mega malls such as
More mega mall, Reliance fresh, spencers.


“Price” may be defined as the value of product expressed in the

monetary terms which a consumer pay or expected to pay in exchange
and anticipation of the expected or offered utility. Therefore, we can
say “price is a link between the consumer and organisation”. As the
main objective of Baroda dairy is not profit maximisation, so it sets
reasonable price for its products. It considers the interest both the
parties. i.e. the suppliers of milk and the consumers currently, all over
India the price of milk is fixed by the NDDB (National Dairy
Development Board)


The products produced at Baroda dairy are not exported to other

countries. The products of SUGAM unit are Exports to countries

Baroda dairy does not have any warehouse but it has “cold
storage”. Mostly, all the products are perishable in nature so there is a
facility of cold storage and it is within the dairy premises.

There is use of private vehicles i.e. tempo & trucks which are
hired to transport milk. The transportation cost is low as it is within
Baroda district.


The major competitors are the private vendors & other dairies,
which are not members of the union. The other dairies are:-

Sardar - pack milk

Vimal - pack milk
Umiya - pack milk
Ellora - loose milk
Bumiya - loose milk
Amul - pack ice-cream
Jagdish - pack milk
Vadilal - pack ice-cream
Havmor - pack ice-cream
Rajasthani - loose ice-cream
Purchase & Stores Department
Inventory Management System

In Baroda dairy, the store department uses the FIFO method. I.e. First
In First Out method of inventory management.

Purchase Procedure

Baroda Dairy’s main raw material is milk. The purchase department

has only to pick up just 10% of other raw material. The purchase procedure is
as under :

1. First of all respective department heads find out their need and get
it approve

by the managing director.

2. Then they contact the stores department.

3. After this they send an indent to the purchase department.

4. The purchase department then asks for quotation from the


5. After the quotations are received will then be selected.

6. The least cost giving suppler will then be selected.

7. Then take the approval and give the authority to the supplier who
gets the quotation passed.

8. Then just let the finance department will make the payment the
supplier after the delivery of goods.
Roles Carried out by different persons in purchase department

 Assistant Mananger

The assistant manager observes all the activities carried out by

purchase department. Other big deals are done in foreign purchase.

 Senior Officer

The duty of the senior officer is to look after butter, oil, etc.

 Senior Assistant

The duty if the senior assistant is to look after the packing

material, packing materials etc.

 Junior Officer 1

Junior officer 1 looks after the purchasing of the engineering

goods, plant items, tools etc.

 Junior Officer 2

Junior officer 2 looks the purchasing of the stationary items,

printing materials veterinary medicines, etc.

 Junior Assistant

The junior assistant takes care of the transportation items.

Types of Stores

 Cold Stores

The cold stores are use for storing milk, chhas, flavored milk,
dahi etc. and many other products.

 General Store 1

In this general store, the veterinary products, medicines,

transportation instrument, buckets, flavors for milk and shrikhand are
stored here.

 General Store 2

Here plastic of milk bags is store, tins of ghee, milk powder,

fodder for cattle’s etc. are stored.

 Non Moving Item Stores

This store is situated at Dabhoi. Here plastic of milk bags, which are outdated,
expired chemicals and other products or items, which are of no use or which
re not reusable are stored here.
Centralized V/S. Decentralized Stores

In Baroda dairy, the stores department is a centralized one. A single

management runs it. Here the all 4 stores are directed and guided by a single

 Material coding system

In Baroda dairy, code no is given to product or item, and that

number recognizes them only. E.g. 04002008

In this number 04 is common number.

002 are sub item number.

008 is the item number.

 Material handling within store

There are two types of method for material handling in the store

1. Technical method

The technical method consists chain hoist, chain trolley etc.

2. Manual method

The manual method consists of truck, trolley and three wheel

 Receipt procedure

The receipt procedure is as follow :

1. Requirement from the concerned department.

2. Indent raising

3. Inquiry by purchase department

4. Comparative statement and approval

5. Purchase order

6. Material Supplied

7. Invoice in stores

8. Material Inspection

9. GRC goods receipt Inspection report

10. Copy sent to purchase department for rejection or acceptation.

 Issue procedure

The issue procedure is as follows :

1. Stock requisition note from the concerned department

2. Signed by the officer of stores

3. Issue of the material to the concerned department

 Minimum Inventory

The equation of the minimum inventory is,

Minimum inventory = routine usage * 25 days lead time

Quality Control Department
Organizational Structure of Quality Assurance Department

 Superintendent

The superintendent observes all the activities in the lab, packing and giving
the guidance.

 Junior Officer

Here the officer looks after all Agmarks related to ghee and butter in the lab.

 Senior Officer

Here the senior chemist looks after ISO 14000 and ISO 9000-20000

 Chemist

The chemist looks after all the society milk, pasteurized milk and other milk

 Sampler

The sampler takes the samples from the milk received from different co-
operative societies.

 Micro Biologist (Milk Plant)

The microbiologist cleans up all the tools and machines. Which are used for
milk, butter and buttermilk.

MBR Water Bath : Methylene Blue Red

Hot Water Bath : (Temperature 60 + - 5)

Heating Mental : (Distillation Units 230 Volts)

Hot Air Oven : 55 + 2 c (For Flavored Milk)

Hot Air Oven : (For Glassware Sterilization)

Hot Air Oven : 160 + 2 c (Min 2 hrs.)

Electronic Milk Tester : Capacity 120-150 Samples/hrs.

For Fat % Analyzing

Milk Sean 133B : Capacity 120 Samples/hrs.

Temp. –40_3 c

Hot Water Bath : Temp. –400 + 2 c.

Busting Strength Tester : 1. Range 0-35 kg/cm

2. Range –070 kg/cm.

Method of Calibration

The calibration of the product is a very important thing when the

product is perishable in nature. Since all the products of the Baroda diary are
very much perishable in nature. The act, which has used accordance for
setting the calibration, is the food adulteration, Prevention Act Passed in
Parameters Tested in Lab

1. Milk

Types of Milk Minimum FAT Minimum SNF

Amul Gold 6.00% 9.00%

Amul Shakti 4.50% 8.50%

Amul’s Cow Milk 3.50% 8.50%

Amul Slim & trim 1.50% 9.00%

2. Ghee

Organoleptic test Max 0.3%

3. Butter

O T normal and abnormal

Moisture not less than 16%

FAT not less than 80%

Salt 3%

Curd not less than 1%

Activities of Dispatch Department

All information given by General Manager of Marketing Department and

Assistant Manger of dispatch department, all activities carried out under their
supervision i.e. order of milk and milk products are dispatched as per the
order of customers and retailer and all records of dispatch are kept in dispatch
register and computer.

Modes of Dispatch and logistics

In dispatch department the work is divided in 3 shifts

1. Morning

2. Afternoon

3. Evening

In morning there are 37 routes for milk and other products. While in afternoon
14 and in evening 3 in a day. These routes are towards Savli, Karjan,
Nandesari, Dabhoi, Chotaa Udepur, Sankheda and many other areas

 Sources of Mode of Transportation

There are trucks, tempos, insulated vans, three wheeler tempos are used to
deliver the milk and the milk products. In morning there are 8 tempos, which
work on cash `n carry business and afternoon onwards there are 14 trucks for
the same type of business.
















Traditionally dairy was a subsidiary occupation of farmers.

However, the contribution to the farmer’s income was not as prominent as it
was farming. But the attachment to dairying was kept as a tradition handed
down from one generation to next.

The milk yield from animals, which were maintained mainly on

the product of the farm, was decidedly low. That together, with lack of facilities
to market, even little produced, rendered the scientific practice of animal
husbandry irrational as well as unaffordable. The return of investment as well
as prospects of being able to market the product looked very bleak, since
marketing & distribution for milk was controlled by private trader and

India has largest population of cattle in the world with 137

million cows and 125 million buffaloes. Presently, these are 81,033 village
dairy co-operative across the country. The co-operative societies are
federation into 172 distribution milk producers unions, which in turn have 23
state co-operative dairy federations.

Farm on insignificant 20,000 liters per day of milk being

processed in 1951, the organized sector is presently handling some 20 million
liters per day over 400 dairy plants.
One of the world’s largest liquid milk plants located in Delhi,
handling over 80,000 liters per day. Mother dairy at the same time in India,
first automatic dairy plant with capacity of 1 million liters per day. Mother dairy
Gandhinagar has been established in Gujarat Co-operative Milk Marketing
Federation (GCMMF) owns it.

Though National Dairy Development Board and its members is largest

producer of Milk and Milk derivatives in India, there are other players in this
field in private sector. Broadly defining this private sector of dairy industry one
has to consider geographical vastness of our country and hence in private
sector though there are several players only handfuls are worth mentioning.

On hand multinational like Nestle is operating in the field of milk

derivatives and not involved in milk production whereas other player Britannia
Industries produce milk and supplies to private dairies and in to co-operative
dairies too, however had Vijaya Dairy in Karnataka and Mahananda Dairy in
Maharashtra are name to be reckon with.

The National Dairy Development Board (NDDB) was founded to replace

exploitation with empowerment, tradition with modernity, stagnation with
growth, transforming dairying into an instrument for the development of India’s
rural transforming dairying into an instrument for the development of India’s
rural people. Prior to NDDB the milk market was vastly governed by local
private dairy and these dairies were neither producing milk nor they were
animal breeders and hence law of demand and supply was unheard by those
whose intentions were purely to make more money form both the sides – that
is form producers of milk (marginal farmers and animal breeder) and
consumer at large. Establishment of NDDB broke that spell and traders were
side lined in due course.

The National Dairy Development Board was created in promote,

finance and support producer-owned and controlled organizations. NDDB’s
efforts are co-operative principles and the Anand Pattern of Co-operation.

The NDDB was created in 1965, fulfilling the desire of the then Prime
Minister of India – the late Lal Bahadur Shatri – to extend the success of the
Kaira Co-operative Milk Producers union (Amul) to other parts of India.

That success combined the wisdom and energy of farmers with

professional management to successfully capture liquid milk and milk product
markets while supporting farmer investment with inputs and services.

NDDB began its operations with the mission of making dairying a

vehicle to a better future for millions of grassroots milk producers. The mission
achieved thrust and direction with the launching of “Operation Flood”, a
programme extending over 26 years and which used World Bank loan to
finance India’s emergence as the world’s largest milk producing nation.
Operation Flood’s third phase was completed in 1996 and has to its credit a
number of significant achievements.
As on March 2001, India’s 96,000 dairy co-operatives integrated
through a three tier co-operative structure – “The Anand Pattern”, owned by
more than ten million farmers, procure an average of 16.5 million liters of milk
every day. The milk is processed and marketed by 170 milk producers’ co-
operative unions which, in turn, own 15 state co-operative milk marketing

Since its inception, the Dairy Board has planned and spearheaded
India’s dairy programmes by placing dairy development in the hands of milk
producers and the professionals they employ to manage their co-operatives.
In addition, NDDB also promotes other commodity-based co-operatives, allied
industries and veterinary biological on an intensive and nation-wide basis. Dr.
(Ms) Amrita Patel serves as the Chairman of NDDB; Dr. Varghese Kurien was
the founder Chairman.

Mother Dairy, Delhi and Fruit & Vegetable Project, Delhi set up by
NDDB in 1974 and 1986 respectively were merged to form M other Dairy Fruit
& Vegetable Limited (MD F & V) in April 2000. The new Company, a wholly
owned subsidiary of NDDB is involved in marketing and distribution of milk,
milk products and horticulture produce.

The Company’s dairy plant handles more than 1.3 million liters of milk
daily and undertakes its marketing operations through 636 owned Milk Shops
and more than 6500 retail outlets in and around Delhi. Ice-cream market
under the brand name “Mother Dairy” has a 1 percent market share in Delhi.
GOAL – 2010
♣ Increase liquid milk procurement by co-operatives to 33 percent (488
Lacks kilograms per day) of the marketable surplus in Operation Flood
Areas, constituting 80 percent of the national milk produced (i.e.
Quadruple Liquid milk procurement by year 2010.)

♣ Increase liquid milk sales to 365 lacks kilograms per day, more than 60
Percent of the market shares in metros, and on average of close to 50
Percent in the Class I cities served by co-operatives (i.e. Treble fluid
Milk marketing by year 2010. )


Gujarat Co-operative Milk Marketing Federation (GCMMF) is a co-operative

society, which has 12 member union spread all over Gujarat.

Name City

Amul Dairy Anand

Dudhsagar Dairy Mahesana
Sabar Dairy Himmat Nagar
Banas Dairy Palanpur
Baroda Dairy Baroda
Sumul Dairy Surat
Utham Dairy Ahmedabad
Panchamrut Dairy Godhra
Gopal Dairy Rajkot
Dudhdhara Dairy Bharuch
Vasundhara Dairy Valsad
Ghandhinagar Dairy Ghandhinagar

HEAD OFFICE: - Amul Dairy

Product Profile :


Sr No Brand Name Fat SNF Price (500 ml)

1 Amul Gold 6.00 9.00 Rs 11.00
2 Amul Shakti 4.50 8.50 Rs 10.00
3 Amul Cow’s 3.50 8.50 Rs 09.00
4 Amul Slim & 1.50 9.00 Rs 08.00


Sr No Type of Ghee Brand Name Quantity Price

1 Ghee of Surbhi 500 ml Rs 100/-
Cow’s Milk
2 Ghee of Mix Surbhi 500 ml Rs. 95/-


Sr No Type Quantity
1 Table Butter 100 gm
2 White Butter 500 gm

Butter Milk
Sr No Type Quantity Price
1 Goras Simple 1 liter Rs 8.00
2 Goras Jira Chaas 200 gms Rs 3.00

Flavoured Milk

Sr No Types FAT SNF

1 Elaichi 3.3 12.5
2 Kesar 3.3 12.5

Rajwadi Kadhi

Rajwadi Kadhi - 500 ml


Masti Dahi – 200 gm.

Background of the study

Many multinational companies have been endeavoring for their

existence in milk business due to liberalized world market arrangements. Our
union has started sales of liquid milk under “AMUL” brand which has highest
sales of milk and milk products in Asia. This has maintained national and
international standard for quality and consumers affinity. These high standard
milk and milk products manufactured economically using modern technology,
are made available timely to consumers.

We have presented our different category liquid milk brand under

AMUL SLIM TRIM in local market which has been accepted by our
consumers. We have increased our sale due to good quality of our products
and customer centric attitude.

There is unhealthy competition in pouch milk from other unorganized

private milk vendors, even though we have increased our sale in liquid milk.
During the year we have sold 3,31,740 liters of milk per day. We have
increased remarkably the sale of flavored milk by 13%, Jira Chhas by 14%
Ghee 5%, Sugam Masti Dahi 38%.

The customer who join us with accreditation should get information

about our quality products, for that we welcome consumers awareness and
students of different school from district urban women customers under the
program women have visited to our union under tourism year. Total 24,892
such visitors have visited our union.
It is important consumer should get milk and milk products at one
place, timely and easily. For that union has started 11 new parlors during the
year with this 67 parlors are operating across the city giving satisfactory
service to consumers. Besides this union has started 1078 morning centers
and 1322 full time centers across the city and taluka places to serve the
consumers for milk and milk products. There are 8 milk bars operating at
public places in Baroda City. The union will be starting 3 new milk bars shortly
with facilitation of Municipal Corporation and SSG Hospital. The consumer
using the product is a part of our business, so we shall endeavor to
strengthen our market system. This will be fruitful for our business
development. And hence a survey to know the “Availability” of Baroda Dairy’s
milk has been undertaken.
Importance of the study

To the organization:

 To know the Satisfaction level of people about the Availability of

Baroda Dairy’s milk.

 To formulate future marketing strategies in a region to increase the


 To know the purchase pattern of milk in the region of Dabhoi.

 Provides factual data for business decision.

 Helps the organization to take managerial decisions.

 Helps the organization to retain the customers in the market.

 Provides information on the consumer’s understanding, needs,

opinions, grievances etc.

 Company can plan new product and strategies to overcome

competitor’s action.

 Can improve quality of products and add value of money to consumers.

 Company can reach its goals through its vision and mission.

 To know the competitive level in the market.

 To know what problems are faced by consumers and to make an

attempt to eliminate or reduce them.
Objectives of the study

Primary objective :

 To know the Availability of Baroda Dairy’s milk in Dabhoi.

Secondary objectives :

 To know about the competitive position of Baroda Dairy’s Milk in


 To know about the respondent’s opinion on quality, price of milk.

 To know the buying behavior of consumers towards purchase of ‘Amul


 To know the satisfaction level of consumers.

 To know the gap between the consumers’ expectations and what the
company serves to its customers.

 To know the drawbacks of Baroda Dairy’s Milk and the reason of

dissatisfaction if any.

 To know which factors affects the purchase behavior

of individuals in the purchase of milk in a town
 To know the purchase pattern of individuals in the
purchase of milk in a town

Research Design

For this particular research descriptive research design has been used.
Descriptive research design is used to know about the market characteristics,
marker share.

Sources of data:

Primary Data

I had use questionnaire as a tool in my marketing

research. I started my project very first educating the
respondents about my entire project and ask them to co-
operate with me. Mostly all the respondent were aware of
this type of surveys. So I didn’t face any type of difficulty
during my project in the process of explaining and taking
their responses on the questionnaire. Here, respondents
includes following

• Govt. Employee

• Pvt. Sector Employee

• House Wife

• Retired
• Student

• Business men

Secondary data I got through following sources.

● Past Reports
● Data through internet source
● Annual Reports of the Dairy

Data collection method

Personal survey has been used to collect the data through structured
questionnaire. Data was collected between 5th June to 21th June in Dabhoi


The population consists of the residents of Dabhoi city.

Sampling Method

Convenience Sampling Method has been used to decide on the selection of


Sample Size :

100 respondents from Dabhoi city.

Sampling Unit
Individuals from Dabhoi city.



Table showing no of people purchasing milk

Q – 1). From which source do you purchase milk?

No of respondents % of Respondents
A. Baroda Dairy 72 72
B. Private Vendor 16 16
C. Local Dairy 12 12
TOTAL 100 100

Chart 1

Chart showing pattern of people in purchasing milk

Here, the chart shows that 72 respondents buys AMUL milk,12 respondent
purchase milk from local dairy, and 16 purchases from private vendors’ milk
out of 100 respondents from Dabhoi.


Table showing Brand of Milk purchased by consumers.

Q – 1(a). If (A) then which brand do you purchase?

No of respondents % of Respondents
(of 72 respondents)
A. Amul Gold 38 53
B. Amul Shakti 26 36
C. Amul Cow milk 3 4
D. Amul slim & 5 7
TOTAL 72 100

Chart showing Brand of Milk purchased by consumers

This chart shows that out of 72 respondents, 38 respondents buys Amul Gold,
26 buys Amul Shakti, 3 buys Amul cow milk, 5 respondents buys Amul slim &


Chart showing % of respondents buying AMUL Milk

The above chart shows that Amul Gold has highest consumption

level of 53% , followed by Amul Shakti With 36%, Amul slim & trim

has 7% consumption and Amul cow milk has 4%consumption level.



2. How much quantity of milk do you purchase per day?

No of respondents
500ML 20
1000ML 67
More than 1000ML 13


Chart showing Daily Consumption of Milk

The drawn chart shows that 67 respondents buys 1liter milk, 20 buys 500ML,
and 13 respondents buys more than 1000ML of Milk in a Dabhoi town.


Table showing frequency of purchasing milk in a day

3. How often do you No of respondent
purchase milk?

A. One time 92
B. Two time 08
C. More than three time 00
Total 100


Chart showing purchase frequency of milk in a day

Chart shows that out of 100 respondents 92 respondents buys only one time
in a day and 8 respondents buy milk two time in a day.

Table showing timing of purchasing milk

4. When do you purchase milk?

No of respondents
Morning Noon Evening Total
A. Summer 88 00 12 100
B. Winter 72 00 28 100
C. Monsoon 70 00 30 100


Chart showing timing of purchasing milk

Chart shows that, In summer 88 respondents buy milk in morning and 12 in
evening, In winter 72 buys in morning and 28 buys in evening, In monsoon 70
respondents buys in morning and 30 on evening, and no one buy milk in


Table showing factors affecting buying behavior

5. Reasons for buying from a particular source. (Rank top five)

User of AMUL milk Non-users
No of % of No of % of
responde responde responde responde
nt nts nt nts
Quality 6 8. 1 4
low price 0 0 5 18
Proximity 7 10 3 11
Regular and timely 9 13 4 14
Traditional habit 8 11 6 21
Fat content 16 22 0 0
Freshness 13 18 0 0
Credit facility 0 0 2 7
Home delivery 11 15 3 11
Availability through out 2 3 4 14
the day
Other (please specify) 0 0 0 0
Total 72 100 28 100

Chart showing factors affecting purchase behavior

The chart shows that Amul milk’s 16 users give preference to Fat content and
13 users buys due to freshness of Amul milk. On the other hand, traditional
habit and low price drive the respondents to purchase milk from local vendors.


Chart showing factors driving people to purchase milk

Chart shows that about 22% Amul milk customers give importance to
Fat content and 18% Amul customers give preference to freshness. The non
users give Importance to traditional habit and low price.


Table showing the satisfaction level about availability of Amul milk

6. Do you get required quantity of Baroda Dairy' milk

No of respondent % of respondents
A. Yes 59 81.94%
B.No 13 18.06%
Total 72 100


Chart showing the availability of required quantity of Amul milk

Chart shows that 82% buyers of Amul milk get required quantity of milk while
an 18% buyer does not get required quantity.


Table showing satisfaction level of Amul milk

5. Rate satisfaction level of Baroda Dairy’ milk in a given scale.

Highly Satisfied Indifferen Dissatisfi Highly
satisfied t ed dissatisfi

Amul Gold 2 23 12 1 0
Amul Shakti 1 16 8 1 0
Amul Cow milk 0 2 1 0 0
Amul slim & trim 0 3 2 0 0
Total 3 44 23 2 0

Chart showing satisfaction level of Amul milk

Chart shows that 23respondents are satisfied, 12 are indifferent, 2 are

highly satisfied and 1is dissatisfied out of 38 Amul Gold buyers. Out of 26
Amul Shakti buyers 1 is highly satisfied, 16 are satisfied, 8 are indifferent and
1 is dissatisfied about satisfaction level. Out of 3 Amul cow milk buyers 2 are
satisfied and 1 is indifferent. Out of 5 Amul slim & trim buyers 3 are satisfied
and 2 are indifferent. No one is highly dissatisfied about Amul milk.


Table showing satisfaction level about availability of Amul milk

6. Rate the availability of Baroda Dairy’s milk on a given scale.

Highly Satisfied Indifferent Dissatisfied Highly

satisfied dissatisfied

Amul Gold 3 27 6 2 0
Amul Shakti 3 15 7 1 0
Amul Cow 0 3 0 0 0
Amul slim & 0 4 1 0 0
Total 6 49 14 3 0

Chart showing satisfaction level about availability of Amul milk

Chart shows that 27respondents are satisfied, 6 are indifferent, 3 are

highly satisfied and 2 are dissatisfied out of 38 Amul Gold buyers. Out of 26
Amul Shakti buyers 3 are highly satisfied, 15 are satisfied, 7 are indifferent
and 1 is dissatisfied about satisfaction level. Out of 3 Amul cow milk buyers all
3 are satisfied. Out of 5 Amul slim & trim buyers 4 are satisfied and 1 is
indifferent. No one is highly dissatisfied about availability of Amul milk.

Table showing response of respondent about availability of Amul milk

6. Are you satisfied with the availability of Baroda Dairy’s milk in

your town?

No of % of respondents
A.Yes 53 73.61%
B.No 19 26.39%
Total 72 100


Chart showing response of respondent about availability of Amul milk

Chart shows that 74% respondents using Amul milk are satisfied with
the availability of Baroda Dairy’s milk while 26% respondents are not satisfied
about the availability.

Limitations of the Study

• I had questionnaires as the primary mean to collect data and some
time it was a hard task to handle with rude type of consumers because
they were not ready to disclose some of the questions ask in
• It was to hard to educate housewife about what my project was.
• There were also so many illiterate consumers and it was also tough to
fill up questionnaire from them.
• Survey done is limited to Dabhoi city only
Results and Findings
• Out of the 100 respondents, all 100 purchase milk. Thus 100% of them
consume milk.
• Out of 100 respondents,
o 72% buys Amul milk
o 16% buys from private vendor
o 12% buys from local dairy
• Out of 72 buyers of Amul milk
o 53%buys Amul Gold
o 36% buys Amul Shakti
o 4% buys Amul Cow milk
o 7% buys Amul Slim & trim
• The daily consumption of milk of the respondents was as follows:
o 500 gm - 20%
o 1 liter –67%
o More than 1 liter – 23%
• When asked When do you purchase milk, the response was
o In summer, 88% of respondents buys milk in the Morning
12% buys in evening
o In winter, 72% buys in the morning
28% buys in evening
o In monsoon, 70% buys in morning
30% buys in evening.
• When asked the reason for buying from a particular source, out of 100
o 7% prefers Quality

o 5% prefers Low price

o 10% prefers Proximity

o 13% prefers Regular and timely supply

o 14% prefers Traditional

o 16% prefers Fat content

o 13% prefers Freshness

o 2% prefers Credit facility

o 4% prefers Home delivery

o 6% prefers Availability through out the day

o 0% gives Other reason

• When asked weather they get required quantity of Amul milk, out of 72
respondents 82% of respondents get the required quantity and another
18% did not get the quantity of milk they require.

• When asked to rate their satisfaction level of Amul milk with regard to
various factors, following findings were derived, out of 72 respondents,
o Highly satisfied - 3

o Satisfied - 44

o Indifferent - 23

o Dissatisfied -2

o Highly dissatisfied -0

• When asked to rate their satisfaction level about the availability of Amul
milk with regard to various factors, following findings were derived out
of 72 respondents.
o Highly satisfied - 6

o Satisfied - 49

o Indifferent - 14

o Dissatisfied -3

o Highly dissatisfied -0

• Weather respondents are satisfied about availability of Amul milk, the
respondents options were as follows
o Yes – 74%
o No - 26%
• From open-ended questions it was found that there is only one Amul
center in Dabhoi and people of Dabhoi are not satisfied with that..

 Respondents are purchasing milk in the morning and evening

 Respondents using Amul milk’s home delivery service are
satisfied with the availability of Amul milk in morning and
 Amul milk is available at all vendor’s shops in the morning only.
 In noon or evening Amul milk is available only at some vendor’s
 Sometimes required Brand of milk is not available at the shops.
 Amul Milk users give preference to its Fat content and Freshness
in buying milk.
 Respondents are satisfied about the availability of Baroda Dairy’s

 Respondents demanded to Baroda Dairy to introduce another

Amul parlor in a city area so that they have not to go far to
purchase milk.

 Amul Parlors should be open till 12 o’ clock.

 Each product should be available at parlor

 Baroda Dairy should know which Brand of milk has more demand
and as per demand required should be supplied.

 Price of milk is high, so it should be reduced by 1Re per pouch to

attract new consumers as well as to retain the present customers.
1. From which source do you purchase milk?

A. Baroda Dairy ----------

B. Private Vendor ---------

C. Local Dairy ---------

If (A) then which brand do you purchase?

A. Amul Gold ---------

B. Amul Shakti ---------

C. Amul Cow milk ---------

D. Amul slim & trim ---------

2. How much quantity of milk do you purchase per day?


3. How often do you purchase milk?

A. One time ---------

B. Two time ----------

C. More than three time ---------

4. When do you purchase milk?

Morning Noon Evening

A. Summer -------- --------


B. Winter -------- --------


C. Monsoon -------- -------- ---------

5. Reasons for buying from a particular source. (Rank top five)

A. Quality ---------

B. Low price ---------

C. Proximity ---------

D. Regular and timely supply ---------

E. Traditional habit ---------

F. Fat content ---------

G. Freshness ---------
H. Credit facility ---------

I. Home delivery ---------

J. Availability through out the day ---------

K. Other (please specify) ---------

6. Do you get required quantity of Baroda Dairy' milk


A. Yes ---------

B. No ---------

7. Rate satisfaction level of Baroda Dairy’ milk in a given scale.

A. Amul Gold 1 2 3 4 5

B. Amul Shakti 1 2 3 4 5

C. Amul Cow milk 1 2 3 4 5

D. Amul slim & trim 1 2 3 4 5

1- Highly satisfied

2- Satisfied

3- Indifferent

4- Dissatisfied

5- Highly dissatisfied

8. Rate the availability of Baroda Dairy’s milk on a given scale.

A. Amul Gold 1 2 3 4 5

B. Amul Shakti 1 2 3 4 5

C. Amul Cow milk 1 2 3 4 5

D. Amul slim & trim 1 2 3 4 5

1- Highly satisfied

2- Satisfied

3- Indifferent

4- Dissatisfied

5- Highly dissatisfied

9. Are you satisfied with the availability of Baroda Dairy’s milk in

your town?

A. Yes ---------

B. No ---------

Open-ended Questions:

1. Comment on availability of Baroda Dairy’s milk.

2. Recommendation.
Personal Details:



Phone/Mobile No:

Following were the primary and secondary data resources used by me to
prepare this report.

Literature :

1. Marketing Management by PHILIP KOTLER

2. Marketing Research by Naresh Malhotra
3. Business research methods by ICFAI university

Internet :


Other :

1. Old Reports
2. Baroda Dairy’s annual report