INDEX

General information
Introduction
History & Development
A brief outline of the organization

Production Department
Introduction of Dept.
Organization Chart
Types of Products
Raw milk receiving Dock
Manufacturing process

Marketing Department
Introduction of Dept.
Organization Chart
Distribution of Dairy
Product Planning
Pricing Policy
Channel of Distribution
Advertisement
 Sales promotion
Selling of milk for last five years
Marketing research

Personnel Department
Introduction of Dept.
Organization Structure
Job Description
Recruitment
Selection Procedure
Salary, Promotion & Training
Employees Benefits and Services

Finance Department
Introduction of Dept.
Organization Chart
Capital Structure
Other Information

Future Plans

Conclusion

Bibliography
 INTRODUCTION

I started my industrial training from 03/11/2004 to 11/11/2004

RAJKOT DISTRICT CO-OPERATIVE MILK PRODUCER UNION
LTD (RAJKOT DAIRY). As per name suggest it is a co-operative
union. Rajkot Dairy was established with the help of Gujarat State in
the year of 1956. The work of building & machinery installation had
been completed in 1963 & this dairy also started its production in
1963.

In 1963-64 two chilling center have also established one at

wankaner & other at vichhiya. At present the dairy is managed by the
Animal Husbandry dept. of the Gujarat state till 1970.

Rajkot dairy is situated at Rajkot & it is located at Bhavanagar

highway road, Dudha sagar marg, Rajkot.
 HISTORY & DEVELOPMENT

As we know that Rajkot dairy established in 1956 & it started its

production in 1963. Rajkot dairy came in existence in 1956 with the
good corporation of UNICEF, it is located at Rajkot city with the help
of Gujarat State.

We have also seen further in introduction that two chilling

center have established in 1963-64. The capacity was 5000 liter of
milk storage but then after it has been expanded.

From 1970 Rajkot dairy is managed by ANIMAL HUSBANDRY

DEPARTMENT of Gujarat state Govt. From 1970 to 1972 during
these two years it come into the fold of Rajkot district gopal co-
operative milk producer union. 1972 on wards this dairy continues to
be with union. On November 2, 1983 the mgt. of dairy was overtaken
by the GUJARAT DAIRY DEVELOPMENT CO-OPERATION for the
period of 5 years. At the end of the period of the dairy was handled by
union. Now a nominal member of the Gujarat co-operative milk
marketing federation ltd. Anand.
 A BRIEF OUTLINE OF THE ORG.

NAME OF THE COMPANY :- RAJKOT DISTRICT CO-

OPERATIVE MILKPRODUCERS
UNION LTD (RAJKOT DAIRY).

DISTRIBUTOR :- There are eight distributors,

1) Maa Marketing
2) Pooja Marketing
3) Jalaram Marketing
4) Radhe Marketing
5) K Marketing
6) Rutvi Marketing
7) Gopal Marketing
8) Jagdish Marketing

YEAR OF ESTABLISHMNENT: - The company was

Established in 1956

ADDRESS ORGANIZATION :- Rajkot Distributor Cooperative

Milk Producer Bhavnaga
Road, Dudh Sagar Marg,
 Rajkot- 360003.

BANKERS :-
a) Rajkot District co-operative bank.
b) Bank of Baroda.
c) State Bank of India.
d) State Bank of Saurashtra.
e) Jamnagar District co-operative Bank
Ltd.
 INTRODUCTION OF
PRODUCTION DEPARTMENT

The production function of a business is concerned with the

creation of a product or service required to satisfy customer needs,
wants and desires. In any business that supplies a needed product or
service, it is quire obvious that activities of production system must be
closely related to the customer demand as reflected in the continuous
flow of orders.

Production means creation of utilities and covers all the

activities of procurement, allocation an utilization of resources such
as Labour, energy, materials, equipment, machinery, etc. Utilities are
goods and services which have want-satisfied powers. Marketing
research enables the enterprise to determine the nature and
character of output of utilities, i.e. goods and services required by
customers. When principles of management are applied in the
specific area of business such as production we have production
management involving planning organizing, directing and controlling
the production system-a subsystem of the business enterprise which
itself is the subsystem of its environment. Production management is
the process of effectively programming co-ordaining and controlling
production i.e. the operations of that part of an enterprise, which is

responsible for the actual transformation of materials into finished

products. It deals with man machine organization to accomplish both
productivity and satisfaction the desirable end results.
ORGANIZATION CHART OF PRODUCTION

General Manager

Production Manager

Deputy Manager

Assistant Manager Assistant Manager

Shift Manager Shift Manager Shift Manager

Technical Officer

Dairy supervisor

Plant Operator
 Workers

TYPES OF PRODUCTION

MILK FAT SNF PRICE

Gopal Skimmed 0.5% 8.7% 4.5 Rs.

Gopal Toned 3.0% 8.5% 7.5 Rs.

Gopal Standardized 4.5% 8.5% 8.0 Rs.

Gopal Full Cream 6.0% 9.0% 9.0 Rs.

Flavor Milk

Kesar

Rose

Elaichi
 Gopal Butter

Gopal Ghee

Gopal Penda

Gopal Buttermilk (Amrut)

RAW MILK RECEIVING DOCK

Weighting

Sampling

Grading

Pumping

Chilling (8-9 c)

Pasteurizing (77-78 c in 16-18 sec)

Storage (5 c)

Packing
Gopal Milk Ghee Flavour Milk Penda Butter
(500 m.l.) (500 m.l.) Milk

If there is sour milk then it is gone for the ghee, butter milk, etc.

MANUFACTURING PROCESS

Rajkot dairy sells milk & produces ghee, butter, flavor milk
& pendas and put them in the market. There are different
processes for production of different items. The processes of
production of some main items are as follow.

PROCESS OF MILK

Procurement department handles this stage i.e. raw milk

receiving stage. Raw milk comes from different kind of label, it means
that if there is black latter on came then it called as buffalo milk & if
there is red latter on cane then it called as cow milk. Milk, which is
coming from chilling, center i.e. wamlamer & vichhia, this milk is
being received in milk tanker. In this stage, milk received from
villages, carried down for weighting at weighting tank. During this
process milk also passes through testing of color, flavor, taste etc.
process by a trained person. If there is slight change in the milk that
type of milk cane removed immediately. After this milk for laboratory
testing from each cane then after milk is gone for the pasteurizing
process.
 Pasteurizing process is also called as head stock
treatment. In this treatment milk is given 72c.g. to 78c.g. heat or then
after milk is frozen unto 4 to 6 c.g. & then it is taken into different
storage tanks as per the consumers demand. After this, milk is
packed in the polythine bags. Each bag contains half liter, and then it
is distributed to the consumers.

So above process is called as a process for the production of

milk.

PROCESS OF FLAVOUR MILK

In this process first of all, heated the raw-milk and then

add in it some particular essences & sugar. Then, after above
process Flavor Milk is ready but after this process its packing in
the bottles and then keep it in the separate tank and then heated it
at a 121 c. temp. do the above process Flavor Milk can be stay
well.
In Flavor Milk, there are three different qualities (A). Kesar
(B). Rose (C). Elaichi.

PROCESS OF BUTTER

After the separation the excess cream is located in a

stiller and give a CENTRIFUGAL CHURN, which have gears. As
 the gears are change, it gains speed and formation of butter takes
place some quantity of butter is sent for packing and the rest is for
making ghee to the ghee section.

PROCESS OF GHEE

In Raw Milk Receiving Dock when there is sour milk

then it is gone for ghee process. In ghee section, butter is taken.
Here, butter is taken to the butter-melting tank. Butter is heated 50c
to 60c to make it liquid. This liquid is results in two larger. Upper layer
is liquid fat and lower layer is buttermilk; it is run out before making
ghee. Upper layer of liquid butter is taken in ghee kettle.

PROCESS OF PENDA

First of all milk is given heat, till it converse into the solid
firm from liquid firm. Then after this, sugar is added into the solid firm.
Then it is given shape & after shaping it packed into 250 gms., 500
gms., and 1000 gms. Boxes.

Contain of penda are as follow.

5 liter milk, 450 gms. sugar 1000 gms. penda

This dairy is produces following types of penda

Chocopuri penda

Malaypuri penda

Kesar penda

Elaichi penda

PROCESS OF BUTTER MILK

In this process first of all, heated the raw-milk with

pasteurized at a 77-78 c. temp. Then added the buttermilk in it.
Thats why in particular time it becomes a curds, then after some
other process in curds it is become buttermilk.

[ Head of this Department : - (G.G. DAVE) ]

 DETAILS ABOUT PURCHASE OF
BUFFALO'S MILK IN LITER

Year Buffalos milk

1995-1996 76,59,327
1996-1997 89,98,917
1997-1998 1,12,65,949
1998-1999 1,27,94,308
1999-2000 1,70,44,651
2000-2001 2,25,05,870
2001-2002 2,50,43,078
2002-2003 3,62,78,842
2003-2004 3,10,17,330
 DETAILS ABOUT PURCHASE OF COWS
MILK IN LITER

Year Cows milk

1995-1996 30,73,674
1996-1997 33,37,313
1997-1998 36,73,886
1999-2000 37,35,532
1998-1999 50,01,549
2000-2001 53,01,093
2001-2002 55,60,455
2002-2003 86,68,775
2003.2004 68,79,106
 INTRODUCTION OF
MARKETING DEPARTMENT

Marketing is a very wide meaning Discovering the

consumers needs and wants and fulfill those by producing goods and
services so only selling is not marketing but it is a part of marketing.

In our training period we came to know that marketing

department of this dairy is separate from this unit. In this department
two separate departments perform marketing activities.

PURCHASE DEPARTMENT:-

In this department there is only purchase of raw materials,

equipments, machineries, etc.
 SALES DEPARTMENT

This department looks after selling of products like milk,

buttermilk, penda, ghee, powder etc. of this dairy. So form above
we can clearly see that in this unit marketing department is divided
in two parts.

MARKETING
ORGANIZATION CHART

GENERAL MANAGER

Sales Dept. Purchase Dept.

Manager Manager

Assistant Manager Assistant Manager

Organizer Attendant
Senior
Attendant Junior

Peon peon

DISTRIBUTORS OF
THE DAIRY

1. Distributors in Rajkot city

Ma Marketing
Pooja Marketing
Jalaram Marketing
Radhe Marketing
K Marketing
Rutvi Marketing
Gopal Marketing
Jagdish Marketing

2. Distributors in Jamnagar
Mayur Enterprise
 Patel dairy farm

3. Distributors in Morbi
Gayatri Marketing
Samay Sales
Harbhole Marketing

4. Distributors in Kuvadava
C.K. Agency
Jayraj Marketing

5. Distributors in Gondal
Patel dairy farm
 PRODUCT PLANNING

Production planning is an engine of marketing process. So

product planning gives that idea regarding how to produce, when to
produces, how much to be produce etc.

Dairy products are mostly perishable product. Particularly for

production of milk, it is a perishable product; its raw material i.e. raw
milk is also perishable. So from raw material to final product quick
decision making power and planning is require. They made product
planning according on the basis of demand situation. There are some
steps regarding product planning followed by this dairy is given
below.

1) Demand for particular goods.

2) Market price and sales price.
 3) Cost of production.
4) Aim of dairy.
5) Quality of raw material.

PRICING POLICY

Price is economic value of product. Price is the means of

effective communication. We have a kind of price equation. Generally,
price policy provides guidelines to the marketing manager to evolve
appropriate pricing decisions.

Money (Rate) = Bundle of expectation or satisfaction

Here General Manager fixing up the prices on the basis of

consumers satisfaction main base of fixing of price is cost of
production. In this dairy maintenance cost is very high so price is also
higher than some other private dairy farms. Though manager tired to
decrease the prices of products to increase the sales.

The main factors for deciding the price are as follow.

 Cost of product
Quality standard
Substitution products
Credit policy
Transportation charges etc.

Thus, price policy provides guidelines to the marketing manager

to evolve appropriate pricing decisions.

CHANNEL OF DISTRIBUTION

In Rajkot dairy one level of channel of distribution is there

because Rajkot dairys products are perishable. One level of channel
which is prefer by this dairy is as follow.

Manufacturer

Distributors / Wholesalers

Retailers

Consumer

In one level of channel of distribution this dairy provides milk to

the retailer by way of vehicles of dairy like tempo, truck, etc.
transportation have by the distributor there are getting delivery from
the Rajkot dairy dock. Total sale of Rajkot citys above 25000 liter per
day. The main distributors of Rajkot dairy are:

1) Rajkot city
2) Jamnagar city
3) Morbi city

And other are Shapar(Veraval), Kuvadava and Gondal. Market

handle by sale department itself.

This unit also provides home delivery facility to its consumers.

Many deliverymen in Rajkot provide milk to consumer from milk
booth.
 ADVERTISING

Modern Market is a competitive Market. Advertising is the best

tool for increase the sales. Advertising is the powerful tool. Without
advertisement the company cannot stand in the market.
Advertisement is a mass media of communication. Thus none of the
company can stand in the market without powerful advertisement.
Advertising plays an important role in any unit. Thus, success of
market programmed, it largely depends on advertising.

As a sales promotion tool advertisement plays an important role

in developing products brand name and market. Yet Rajkot dairy
spends quite a little bit after advertising.
 Quality of the product speaks for itself. So the company does
not spent more after advertising. In spite of this they give
advertisements through the following media.

1) Television
2) Wall painting
3) News paper
4) Magazines

General manager & board of director fix advertising budget of

Rajkot dairy.

SALES PROMOTION

Sales promotion refers to all the activities for increasing the

total sales & demand of products. Rajkot dairy also promote such
type of sales promotion activity. Rajkot dairy takes part in held during
different type of exhibitions like on 15th Aug and 26th Jan. It also
takes part in science & health fairs. This is done in order to create
awareness among the people for use of pasteurized milk rather then
raw milk.

They also gave milk to the people for taste in free during these
exhibitions and fairs to deterrents taste pasteurized milk and raw milk.
 Now days in the competition are sales promotion activities
become most powerful in any of the organization to promote the sale.
This dairy also tries it best for sales promotion.

SELLING OF MILK FOR

LAST FIVE YEARS

YEAR 2000-01 2001-02 2002-03 2003-04 2004-05

SELLING 45,067 43,302 40,292 51,034 -----------

OF MILK
(PER DAY)
(Average of milk is in liter for per day).
 MARKETING RESEARCH

Marketing research is a systemizing gathering recording and

analyzing the data about marketing problems to facilitate decision
making.

In Rajkot dairy introduce marketing research activity by door to

door observations. So that they can easily know the ideas of
consumer of Rajkot dairys product and they (Rajkot dairys mgt.) can
also know problem of the consumer & accordingly they try to solve
the problems. By this dairy mostly marketing research made when
they want to introduce new product or new booth among with people.

Thus, marketing research concentrates on the study of product

planning, advertising and sales promotion, distribution structure,
marketing strategies, marketing competition, buyer behavior and
attitudes in the marketing place.
 INTRODUCTION OF
PERSONNEL DEPARTMENT

In all business concerns there is one common element, i.e.

resources. Work force of an organization is one of the most important
inputs of components. It is said that people are our single most
important asset. Because of the unique important of human
resources and its complexity due to ever-changing psychology,
behavior and attitudes of men and women at work, personnel function
i.e. manpower management function is becoming increasingly
specialized. The personnel function or system can be broadly defined
as the management of people at work-management of managers and
management of workers. Personnel function is particularly interested
in personnel relationships and interaction of employees- human
relations.

A system is an organized whole, consisting of interrelated and

interdependent parts. A business enterprise is an open adaptive
system describing the principal elements of the input-transformation-
output system operating in its environment. The main duties &
responsibilities followed by this department in this dairy are as follow.

Organizational planning
Recruitment & starting of employees.
Promotion & employment
Training and development of employees.
To increase employee relationship
PERSONNEL STRUCTURE

General Manager

Personnel Manager

Assistant Manager

Supervisor
 Head clerk

Clerk Operator Time Keeper Typist Watchman

Peon

JOB DISCRIPTION

Job description process is adopted in Rajkot dairy for

managerial level of executive level persons. In this dairy, this process
use in specific when they selected as executive person at that time
they are given information about job description to executive persons
information like.

1) Nature of job.

2) Working condition.
 3) Duties and responsibilities.

4) Position and status in organization.

5) Job summery.

6) Information about securities and services.

7) Information about machine, tools, equipments etc.

RECRUITMENT

Once we know the manpower requirements, we can proceed to

the problem of attracting interested application and then choosing the
best of there for the available jobs. Recruitment return to the attempt
of getting interested application and providing a poll of prospective
employees so that we can select the right person for the right job
from this fool.

Recruitment procedure and selection process.

 Gopal dairy mostly follows external sources for recruitment
procedure. When org. wants to take expert person through this dairy
govern advertisement in local newspaper. There are some external
sources for recruitment like:

a) Reference by present employees

b) Employees exchanges

c) Educational institution etc.

SELECTION PROCEDURE

The selection procedure works best on a foundation provided

by job analyses. Job description and job specifications that tell to the
kind of person that is necessary to fulfill properly the responsibilities
of the job. The selection procedure involves a series of personal
studies to discover the qualification and characterization of an
applicant for the job. The candidates are subjected to screening tests
and it be successful under each scenery teot, he may be finally
selected and appointed by the org. There are some stages of ideal
selection process.
 Preliminary interview
Application blank
Selection tests
Final interview
Checking of reference.
Medical or physical examination
Final selection

Rajkot dairy adopt only one step employment interview

company gives preference to the most qualified person. Interview is
hold by selection committee of the dairy.

Such a way, this dairy select any new personnel company

adopts such type of small selection procedure. So it is short 7 sweet
processes, which is exactly for this org.
 SALARY,PROMOTION AND TRAINING

SALARY:-

This dairy introduce time wage (salary). It pays wages and

salaries according to government provision. The salary is paid to the
workers and employees on a monthly salary bases. Main ratio & data,
which are concerned with our study, is collected as under.

Pay scale decided by Govt.

Dearness allowance 95%
 House rate 10% of pay scale.

This unit also provides bonus facility to executive persons for

every year.

PROMOTION:-

Promotion involves a change from our job to another thats

better in terms of status & responsibility. This dairy also gives
promotion to its employees. In this unit promotion is given two
ways.

Promotion on seniority basis.

Promotion on qualification basis.

So here we can see the promotion policy of the unit, it is clearly

emphasis in this policy that seniority & the qualification is must &
important.

TRAINING

Training improves working capacity and quality of

employees. Rajkot dairy conduct training programmed under two
method.
 1) Vestibule training:-

The training is not given on the job but workers are

trained on specific job in a special part of the plant by models.

2) Apprenticeship:-

In this programme tend towards more education than on

the job training or vestibule training in that knowledge and skill in
doing a craft or a series of related jobs are involved. The dairy
years time limit is fixed for Apprenticeship training then after the
training has given permanent charge of job.

EMPLOYEES BENEFITS & SERVICES

Dairy provides benefits & services to the employee dairy

provides many common services and facilities like canteen facilities,
residential houses to the workers at a nominal rent of Rs. 40 per
month. The dairy also gives facilities like gratuity, provident fund, LIC,
loans, insurance etc. to its employees.

The employee state insurance scheme (ESI scheme) has been

also established for the welfare of the workers. According to this
scheme, the management of Rajkot dairy to credit Rs. 20 to
employee account every month provides Rs. 10.

(Head of the Department :- LILA BEN)

 INTRODUCTION OF
FINANCE DEPARTMENT

Finance is the most important part of any business. Finance is

lifeblood of every business. Business is not possible without finance.

In Rajkot dairy finance department is totally separate from other

departments and account manager handles this department. Finance
manager Mr. J. P. SHAH. This department has line and staff type of
organization so it is easy to understand and follow it. Here authority
flows going upward to downward and responsibility flow is going
down ward to upward. There are so many duties of this department.

1. Management of working capital.

2. To decide the cost of production of milk and its products.
3. Keeping accounts.
4. Provident fund scheme work.
5. Provision of sales tax, central excises etc.
6. Bonus.
7. Band transactions and reconciliation.

FINANCIAL STRUCTURE

General Manager

Financial Manager

Managing Accountant Senior Cashier

Senior Accountant Junior Cashier

Senior Assistant

Junior Assistant

Clerk

Peon

CAPITAL STRUCTURE

We have collected some valuable information from Annual

Report of the dairy. Which has given to us such information is
regarding capital structure of dairy are as under.

Authorized share capital 1,00,00,000

(1,00,000 equity share of Rs. 100)

Paid up share capital 47,22,500

In case of Rajkot Dairy they have accounts in banks namely

I. Rajkot District Co-operative Bank.

II. State Bank of India.
III. State Bank of Saurashtra.
IV. Bank of Baroda.
V. Jamanagar Dist. Co-operative Bank LTD.

But, their main bank is Rajkot District Co-operative Bank that

means firm does banking work mostly through Rajkot District Co-
operative Bank.

OTHER FINANCIAL INFORMATION

1. CAPITAL

In its initial period it was sponsored by UNISEF, moreover

NDDB (National Dairy Development Board) plays a vital role in
providing finance to the Rajkot dairy.

Year Amount of share capital (Rs.)

1998-99 40,89,800
1999-00 39,96,900
2000-01 43,97,300
2001-02 47,22,500
2002-03 57,13,000
2003-04 77,91,500

2. LOAN

Rajkot dairy also obtains loan from many financial

institutions like N.D.D.B., G.D.D.C., G.S.F.C., and Banks etc.

In 2004 the secured and the unsecured loan are as under.

Secured Loan Rs. 3,20,85,472.64

Unsecured Loan Rs. 22,07,444.33
(Head of the Department :- J. P. SHAH)
 FUTURE PLANS

Rajkot dairy sales all increasing day by day. So, they want more
finance for the smooth running of the company.

In future plan of this dairy provided proper management in

organization, or steps are to be taken towards modernization of this
firm, this dairy will progresses more and it can also earn profit if
utilization of financial sources is to made by management of this firm.

As present 330 villages are covered by Rajkot dairy, which is,

wants increase at maximum level. There sales as much as possible
by more hard-work and decrease in price, increase in agents
commission and call more and more schools and colleges for serve in
future.
 CONCLUSION

The purpose of the study was to draw some light on philosophy,

culture and sentiments of organization.

After visiting Rajkot dairy, I feel very glad that I had be a part of
it for sometime. This visit gave me much practical knowledge and a
very good experience.

The unit is also enquired with the latest technologies and

modern machines. The staff and workers are also well organized and
co-operative.
 Looking to the units properly and orderly management I would
like to give my best wishes for each and every step they take for
expansion and for attaining a bright future .
 BIBLIOGRAPHY

Modern Business Organization and Management

S.A. SHERLEKAR
V.S. SHERLEKAR

Marketing Management

S.A. SHERLEKAR
 COLLEGE CERTIFICATE

This is to certify that the industrial practical visit report on

Rajkot Dairy is the original work of Mr. Lunagariya Amit of
F.Y.B.B.A. has carried out project work of this report is his contribution
by his own affords under my supervision.

DATE : -

PLACE :- RAJKOT
Signature Signature

(Project guider) (Principal)

Prepared by :- Lunagariya Amit

Guided by :- Mr. Niraj Pandya
College :- Shree R. P. Bhalodiya
Academic year :- 2004 2005
Class :- F. Y. B.B.A.