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Transcript of Sumul
AProject report
on summer training
at
“ surat district co-operative milk producer’s union ltd. ”
Introduction
• Sumul or Surat Milk Union Limited, which is now renamed as The Surat District Co-operative Milk Producers' Union Ltd, is one among the 12 district unions which acts as manufacturing units of dairy products for (G.C.M.M.F.) Gujarat Co-operative Milk Marketing Federation Limited.
• SUMUL Dairy is a co-operative endeavor committed to help marginal farmers and down trodden tribal to lead to a healthy life and better standard of living through scientific animal husbandry practices. Today’s Sumul enjoys the pride to serve milk and milk products to popular in Surat city and surrounding towns of it.
• Hence, the Surat district co-operative milk producer’s union ltd, SUMUL is trade name and literally meaning sound price, came in to
existence on August 22, 1951…
History• In the year 1939 Sardar Vallabhbhai Patel went and meets the farmers of
Anand and told them that for the trade of milk the dairy was necessary. During that time there was only one dairy “POLSUN DAIRY” which belongs to British’s and they use to give very less price for milk to the Indian Milkmen. At that time a person named Tribhuvandas Patel came forward to take the leadership. In order to support the Indian farmers “AMUL DAIRY” was established in the year 1946.
• DR. Kurien was appointed at this dairy. • Then after, For the proper development of the dairy industry N.D.D.B.
(The National Dairy Development Board) was established at Anand. • Here the farmers were, made aware about their right & responsibilities
high productivity of milk at low cost & so the co-operative of development programs started.
• In the year 1998-99 two million tone of milk was produced in Indian & Indian becomes the world’s first milk producing country. Which is more then 68 million of American. So it was called “white revolution”
“SUMUL IS SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT TO CONSUMER DELIGHT AND RESPECT FOR ALL. SUMUL BELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGH TEAMWORK, TRUST & EXCELLENCE, WITHOUT COMPROMISING HIS HONESTY AND INTEGRITY"
Sumul’s mission & vision Sumul’s mission & vision statementstatement
Year 2006-07 2009-20
Turnover RS. 607 Crores RS. 4000 Crores
Milk Procurement 6,59,682 kg/day 14,10,000 kg/day
Milk Sale 595,595 Liters/Per day 13,00,000 Liters/Per day
Quality ISO 9001 & HACCP ISO 22000 & ISO 14001
Production cost Minimum Production Cost MPC through 100%
automation
Distribution System Consumers oriented,
Quick and effective
Consumers oriented, Cost
Effective Distribution, Cost
Effective Vertical &
Horizontal Distribution
NUMBER OF DEPARTMENTS IN SUMUL NUMBER OF DEPARTMENTS IN SUMUL DAIRYDAIRY
There are 10 departments at Sumul, they are as follows.
• 1. HR department• 2. Finance department• 3. Sales & Marketing department• 4. Veternity Department• 5. Production & Engineering Department• 6. Accounts Department & Audit Section• 7. Assembling Department• 8. Quality Department• 9. Store & Purchase Department• 10. Information Technology Department
introductionintroduction
Sumul’s milk marketing in Surat city is monitored, eliminating costly sales-booths and though regular and assured twice a day supply of milk to 1662 concessionaires (Agent) and 198 institutional buyers, through 85 contractors’ route vehicles. There is guaranteed cash inflow of the sales proceeds on day-to-day basis and safe return of crates etc. to the Dairy.
Hierachy structure of marketing departmentHierachy structure of marketing department
marketing environment
Macro-environment:The wider environment is also ever changing.
It includes competition, Government Policy, Politics, Economical Policy and Cultural activity.
Internal environment External environment
Micro Macro Internal environment:
They are generally audited by applying the ‘Five Ms’ which are…. Men, Money, Machinery, Materials and Markets.
External environment:
Micro-environment:This environment influences the organization directly. It includes :1. suppliers who deal directly or indirectly2. consumers and customers 3. other local stakeholders
List of CompetitorsList of Competitors
• Following some of the dairy all from the district i.e. from North Gujarat & Maharashtra:
1. Unity dairy, Uttarsanda 11. Sardar Dairy, Mehsana
2. Jeevan Shakti, Dhuliya 12. Vimal Dairy, Mehsana
3. Vishalsagar, Dhuliya 13. Royal Dairy, Gandhinagar
4. Gopi Milk Products, Puna 14. Suffal (Paneer) 5. Gautam Milk Products,Kopargoan 15. Satyam Dairy, Gandhinagar
6. Gayatri Milk Dairy 16. Sumathur dairy
7. New Suraj Dairy, vijapur 17. Mahakall Dairy, Sid8. Sarita Milk Products, Kadi 9. Britannia (Ghee)10. Neslte (Milk powder, Ghee)
Product- mix OF sumul dairy
Homogenized Toned Milk
Homogenized Toned Milk
Liquid Milk
Liquid Milk
Whole MilkWhole Milk
Pasteurized Standard
Milk
Pasteurized Standard
Milk
Milk Products
Milk Products
Cow MilkCow Milk
Skimmed Milk
Skimmed Milk
White ButterWhite Butter
GheeGhee
Butter MilkButter Milk
Skimmed Milk Powder
Skimmed Milk Powder
Self Developed Products
Self Developed Products
PaneerPaneer
Flavors Milk
Flavors Milk
SweetsSweets
ShrikhandShrikhand
Sumul SugarSumul Sugar
Sumul TeaSumul Tea
Products Mix: “The set of all products and items that a particular seller offers for sales to buyer.”
PACKAGING & LABELINGPACKAGING & LABELING
Packaging Labeling:
• To achieve marketing objective of the to satisfy the desire of the consumer sumul has chosen the labeling components very correctly.
• They also use different -different slogan on the product.
• SUMUL use this type of symbol …
• Packaging is one of the most important factors that management must have to consider in mind.
• Here, different machines are available for different types of packing. The firm is now going for a new type of packing called “Gable top packing”.
• The main advantage of such type of packing is in this packing milk remains fresh for about 10 days.
Pricing policyPricing Policy: General information regarding to setting of price is it has fixed structure followed by GCMMF at Sumul farmers are paid on the basis of kilo fat in their milk. They are paid Rs.318 per KG of fat. Taking this as base the price of the product is being set. Price list are as follows:
Commodity Quality Price(Rs.)
Ghee 15 kg 23005 liter 7202 liter 2751 liter 1501 liter pouch 145500 ml pouch 74200 ml pouch 31
White Butter 15 kg 1695500 gm 60
Jome 200 ml bottle 8200 ml pouch 5
Paneer 1 kg 105200 gr 22
EIaichy Peda 500 gr 59250 gr 30
Kesar Peda 500 gr 79250 gr 40
Malai Puri Peda 250 gr 36Premium Tea 500 gr 62
250 gr 33100 gr 14
Silbver Tea 500 gr 71250 gr 39100 gr 16
EIaichy Shrikhand 500 gr 40Kesar Shrikhand 500 gr 45
100 gr 10
Cost Structure of Product:
Production cost+ Transport expenditure+ Profit Margin+ Commission------------------------------
Cost
Organisation’s buying process
• Sumul collects the milk from the villages.
• The collected milk is tested against the set standard. That insures quality of milk being received from the root level.
• The milk is tested in lab. No compromises with the quality of milk being received and pay the price of milk on the basis of fat.
• The qualified milk is received at raw milk receiving Dock at dairy.
• The received milk is transported to the dairy for the further processing
Buying Process:
Product life cycle
Introduction Growth Maturity Decline
The Product Life Cycle concept helps marketers interpret product and market dynamics.
Sumul is at the growth stage of the product life cycle and our company also create the new idea and launching new product time to time and increasing sales every time.
Channel of distribution
DISTRIBUTION CHANNEL OF LIQUID MILK
So, its called one level (1 level) Distribution Channel
DISTRIBUTION CHANNEL OF DAIRY PRODUCTS
So, its called two level (2 level) Distribution Channel
MARKETING / SALES Department AT A GLANCE
Population of Surat City: 45, 00,000
Market Size: 8, 25,000 Liters/ day. (Population*250ml per capital)
Annually Milk sale (2008-09) is 24,93,28,941 Liters .
Average sale (2008-09) is 6, 83,093 Liters milk per day.
Growth: 14.82%
Market share: 77%
Competitors in packed milk:18-20 having sale 25000-30000 liters in total per day.
Promotional ACTIVITIES
Advertisement:Here advertising is done through hoardings, banners, wall painting, newspapers, and stickers etc. Sumul dairy spend nearly 20 to 25 lakh on the advertisement. The contract of advertisement is with the Venus ads.
Healthy Baby Contest since 1992…
Paneer Show:
Education Programs:
House Visits:
introduction
• Sumul believes that the most significant resource is its Human Resource and Sumul’s Success in the long run depends very much on the quality of its human resources.
HR Objectives:HR Objectives:
• To develop and sustain core values.• To develop business leaders for tomorrow.• To provide job contentment through empowerment, accountability and responsibility.• To build and upgrade competencies through virtual learning, opportunities for growth and
providing challenge in the job.• To faster a climate of creativity, innovation and enthusiasm.• To enhance the quality of life of employees and their family.
Organization structure
Activities of personal departmentActivities of personal department
The main activities of this department are…
Recruitment, selection, Training, Self Development & Employee Personality Development and welfare activities. R & D
Human resource planning Human resource planning
When there is any vacancy or some requirement comes up in the organization. Human resource planning is being done.
Selection process
• Procedure for selection is differing from organization to organization and from job to job. • For Executives:
• Written Test– Aptitude test– Subject test
• Group Discussion• Interview• Final selection
• For Non-Executives:• Written Test• Final interview• Final selection
PERFORMANCE APPRAISAL SYSTEMPERFORMANCE APPRAISAL SYSTEM
• “Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in matters of pertaining to his present job and his potential for a better job”
• In sumul, gives specific project to the employee to train him. After completion of this project, it is checked by the authorized person of the department. if the employee do not perform well then they are terminated from the organization.
Training & DEVELOPMENT Training & DEVELOPMENT
• Sumul Dairy, training is given with the objective of increase in productivity of employees, increase quality of work, enhance and update knowledge and skills of employees.
• Sumul provides training as on the job training and give training to new employee. Training is given to the workers which are basically at period of one month.
Training is given in 3 Categories as:» Management Training.» Office Training» Senior Executive Training
• So, the sumul also organized various development programs for Officers and Executives.
Wage & salary structureWage & salary structure
“Wages represent hourly rates of pay & Salary means monthly rates of pay”
•Sumul also provides this type of allowances :
•Dearness Allowance (DA)•Additional Dearness Allowance (ADA)•House rent Allowance (HRA)•Leave Travel Allowance (LTA)•Washing Allowances (WA)•City & Travel Allowance (CTA)•Visiting Allowance (VA)•Bicycle Allowance (BA)•Scooter Allowance (SA)•Driving Allowance (DA)•Other Components:
Bonus (8.33% of BASIC +DA+ADA)
Funeral Fund Rs.3000 to the ward and family of the dad.Every month Rs1/- of all higher executives salary is maintained for this fund.
Employee welfare“Labour welfare means anything done for the comfort and improvement. Intellectual or social of the employees over and above the wage paid which is not a necessity of the industry”
Convenience and comfort during the work
Washing facilities Store & Drying facility Canteen facility Rest room First aid facility Vehicle parking space Accommodation Vehicle loan Uniforms, Shoes and Raincoats House rent recovery
Extra mural welfare activity of Sumul: Transportation Roads, lighting, garden Communication facility Security Training and development programs
Intra mural welfare activity of Sumul:
Personnel information system The HR department keeps the information of each and every employee from top to bottom level workers. This information is updated from time to time.
Organization structure of production department
Activities of production departments
• Production planning• Material requirement planning• Store finished goods and raw material• Quality control• Packaging• Painting of pack product• Transport to Marketplace• Washing and cleaning of equipments, regular maintenance of machine and other equipments.
MAP OF ACTIVITY AREA:-MAP OF ACTIVITY AREA:-
Main Dairy PlantCilling Centre
km distance from surat
Taluka/ Tahsil Name Cattle Feed Factory
Production processProduction process at SUMUL dairy is derived into two main stages. They are as follows-
1. Process flow from Village to Chilling Centre Level2. Dairy plant to Market Level
PROCESS FLOW FROM VILLAGE TO CHILLING CENTRE
Milking by Producer Producer approaching DCS Grading & Testing at DCS
Collection at DCSTransportation to Chilling Centre
Receiv ing at Chilling Centre Testing at Chilling Centre Transportation to Dairy Plant
2. DAIRY PLANT TO MARKET LEVEL
Milk Receiving Testing of Milk Processing
ProcessingPacking
Storage Delivery
Processing
Market
Unit of sumul & their capacity
Unit Place Capacity Employees Distance From Surat
SUMUL DAIRY Surat 5 Lakh LTPD 591 0 km
Bajipura Chilling Centre
Bajipura (B.C.C.)
3 Lakh LTPD 113 50 km
Navi Pardi Chilling Centre
Navi Pardi (N.P.C.C.)
2 Lakh LTPD 66 25 km
Uchchhal Chilling Centre
Uchchhal (U.C.C).
1 Lakh LTPD 49 105 km
Nizer Chilling Centre
Nizer 63,000 LTPD 16 175 km
Chasvad Chilling Centre
Chasvad
(C.C.C.)
30,000 LTPD 100 km
Dediapada
Chilling Centre
Dediapada
(D.C.C.)
30,000 LTPD 135 km
Sumuldan Factory
Chalthan (S.D.F.)
200 MT PD 96 18 km
Micro motion study• During the visit to the production plant we have done micro motion study of a worker whose
work was to take the milk pouched from the machine and the keep them on carate, which uses to come serially on the belt conveyors. The position of the person was such that it to very less time.
• The pouches of 500 ml were filled in Polly bags, sealed and ready pouches were thrown though the pouch-filling machine.
• The entire process was completed in 18 sec.
“ SUMUL DAIRY ARE DEVOTED, DEDICATED AND MOTIVATED WORKFORCE TRAINEDTO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY AND SAFE MILK AND MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF CUSTOMER SATISFACTION.
SUMUL WILL ACHIEVE THIS BY MONITORING AND UPGRADATION OF PROCEDURES AND PROCESS APPLYING SCIENTIFIC INNOVATIONS AND STATE OF THE ART TECHNOLOGY AND REMAIN ECOFRIENDLY QUALITY AND FOOD SAFETY MANAGEMENT SYSTEM.”
Quality policy
TOTAL QUALITY MANAGEMENT (TQM) • TQM (Total Quality Management) was implemented at SUMUL on 6th May, 1996 with
the help of EICHER CONSULTANCY, Mumbai.
TOTAL PRODUCT MANAGEMENT (TPM) • TPM (Total Product Management) was implemented at SUMUL on 19th, October, 1999
with the help of TQM center at Surat under consultancy of Dr. B. C. Naidu.
• Sumul has adopted International Standards for Quality Management. QAS Australia has certified our quality management systems by issuing ISO 9002, ISO-14001 and H.A.C.C.P. Certificates.
ENVIRONMENT POLICY:• Comply with all applicable environmental legislation, regulations and other
requirements .• Control Plant operations to conserve natural resources such as water, electricity and
fuel and prevent pollution • Continues improvement of environmental performance Creating
awareness towards environmental issues among suppliers and stake holders
Support services
» Maintenance» Packing
Maintenance:
At SUMUL, there is a strong maintenance procedure on raw materials & final products, because such milk products should be maintain in such way they maintains their quality for the long period of time.
Packing:
• Packaging is one of the most important factors that management must have to consider in mind.
• Here, different machines are available for different types of packing. The firm is now going for a new type of packing called “Gable top packing”.
• The main advantage of such type of packing is in this packing milk remains fresh for about 10 days.
Material handling equipmentsequipments
Material Handling Equipments Used
• Pipeline:
• Trolleys:• Crates Trolleys • Cans Trolleys• Plastic Tube
• Belt Conveyors:
• Trucks (Tempos):
No. of Material Handling Equipments Used:
Equipment Quality
Milk Tankers :
Sumul
On contract
13
11
Tempos (on contract) 70
Belt Conover 8
Crates 40,000
Cans :
40 Liter.
20 Liter.
250
25
Crates Trolleys 50
Cans Trolleys 10
Plastic Tube 5
Glass Betties (200 ml) 35,000
Plant location
• SUMUL dairy is located near railway station road in Surat. It covers 15,000 – acre land. Sumul provides milk collection facilities at the producer’s door in each village co-operative, where milk is speedily, efficiently and economically transported twice daily to its dairy plant and chilling centers for processing and marketing.
Hierarchy of finance department“Finance management is that managerial activity which is concerned with the planning and controlling of the firm financial resources.”
• Sumul is the co-operative so it has not special financial department.
• Sumul require a lot of funds for meaning its working capital needs and other obligations.
• It manages its working capital needs through internal funding only. There is regular, assured and smooth in flow of cash from milk sales from the agents to dairy’s Cash Collection Centers on day-to-day basis.
Turn -over information
• From the study of the above diagram, we can see that Sumul has made a continuous progress in their profit making figures.
• The present turn over of the firm is 790 crores which is 90 crores more than the profit of the previous year.
Budgeting & planning
• Capital budgeting decision pertaining to fixed and long term assets which by definition refer to assets which are in operation and yield a return over a period of time , usually exceeding one year .
• Capital budgeting is the most important and complicated problem of managerial decision. Because it is concerned with designing and carrying out through a systematic investment programmes.
• It involves the planning of such expenditures, which provides yields over a number of years. The firm’s investment decision would generally include expansion, acquisition, modernization and replacement of the long-term assets.
• In short, the capital budgeting decisions means… a decision as to whether or not money should be invested in long term projects.
Taking loans (SOURCES OF FUNDS)
• Every firm needs money or funds for the activities of it’s organization and they all takes it from either share capital or loans like debentures, bonds etc…
Reserve fund & other funds: 16,85,26,228
Debenture Redeemable:
909 debentures Rs.500/- each
4,54,500
Loans:
N.D.D.B. (operation flood)
Cattle loan etc.
Short term Loan
42,32,87,520
27,08,078
2,05,79,442
40,00,00,000
Interpretation:-At the and of the year Sumul has….
• Reserve fund & other source of funds Rs. 16,85,26,228• Redeemable Debenture Rs. 4,54,500• Total Loans Rs. 42,32,87,520
Issuing shares Authorized Share Capital:
(10, 00,000 ordinary shares of Rs.100/ each.)
10,00,00,000
Share Capital (Issued fully paid up.)
(4, 23,672 ordinary shares of Rs.100/- each.)
4,23,67,200
•Interpretation:-
• Sumul has 10, 00,000 ordinary shares of Rs.100/ each. So, Authorized Share Capital Rs. 10,00,00,000
•Sumul Issued Share Capital is 4,23,672 ordinary shares of Rs.100/- each. Which are fully paid up.
So, Share Capital Rs. 4,23,67,200
Cost system• Cost is one of the main factors affecting finance department. • There are lots of control techniques through which companies can control their cost.
Cost Structure of Product:
Production cost+ Transport expenditure+ Profit Margin+ Commission------------------------------
Cost
Payment process
•Collection of sales bills & sales data
•Data verification with sales information
•Feed concern data in computer
•Feed duration data in computer
•To pass duration entry to the computer.
Balance sheet data
Liabilities
• Comparative analysis means after some period company analyzing its financial report current year figure with the past years figure .
• With the help of comparative analyzing company aware about it financial position. • Some balance sheet data are as follows:
Assets• Assets
42,72,01,141• Investments 4,97,46,578• Stock
48,05,07,794 • Advances & other assets 32,96,97,582• Cash & bank 95,92,51,961
• Authorized Share Capital 10,00,00,000 • Share Capital (Issued fully paid up.) 4,23,67,200• Debenture Redeemable 4,54,500• Reserve fund & other funds
16,85,26,228• Loans
42,32,87,520• Current liabilities
1,59,04,09,166• Profit & Loss A/C.
2,13,60,442
Net Profit 2,13,60,442
Total Income / Expenditure 8,40,61,16,108
Working capital
• Generally, the term Working capital refers to that part of capital which is not tied up in fixed assets but is used to meet the day-to-day requirements of business.
Working Capital = Net Current Assets – Net Current Liabilities
Current Assets:
In 2008 Stock is 54,47,01,276, Investment is 4,97,44,132 ,Cash & Bank A/C is 75,49,00,390 , The total Assets is 1,34,93,45,798.
Current Liabilities:
In 2008 Reserve fund & other funds is 15,03,81,724,Current liabilities & loans is 1,34,53,70,370.The total Liabilities is 1,49,57,52,094.
So The Net Working Capital is 14,64,06,296