WORKING CAPITAL

CHAPTER-I

INTRODUCTION

FINANCE:

Finance is the set of activities dealing with the management of funds. More specifically, it is
the decision of collection and use of funds. It is a branch of economics that studies the
management of money and other assets.

Finance is also the science and art of determining if the funds of an organization are being used
properly. Through financial analysis, companies and businesses can take decisions and
corrective actions towards the sources of income and the expenses and investments that need
to be made in order to stay competitive.

DEFINITION:Finance addresses the ways in which individuals, business entities and other
organizations allocate and use monetary resources over time. The term finance may thus
incorporate any of the following:

1. The study of money and other assets

2. The management of those assets

3. As a verb, “to finance” is to provide funds for business.

Financial management:

The term financial management has been defined, differently, by various authors. Some of the
authoritative definitions are given below:

1. “1Financial Management is concerned with the efficient use of an important economic

resource, namely, Capital Funds” —Solomon

2. “Financial Management is concerned with the managerial decisions that result in the
acquisition and financing of short-term and long-term credits for the firm” —Phillioppatus.

1
R. W. Burton and S. C. Jaquette.

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1.1 WORKING CAPITAL:

Working capital, also known as net working capital, is a financial metric which represents
operating liquidity available to a business. Along with fixed assets such as plant and equipment,
working capital is considered a part of operating capital. It is calculated as current assets minus
current liabilities. If current assets are less than current liabilities, an entity has a working
capital deficiency, also called a working capital deficit.

A company can be endowed with assets and profitability but short of liquidity if its
assets cannot readily be converted into cash. Positive working capital is required to ensure that
a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing
short-term debt and upcoming operational expenses. The management of working capital
involves managing inventories, accounts receivable and payable and cash.

1.2 CONCEPTS OF WORKING CAPITAL

GROSS WORKING CAPITAL:

It refers to the firm’s investment in current assets. Current assets are the assets, which can be
converted into cash within an accounting year or within an operating cycle. You can include
here cash, short-term securities, debtors (accounts receivable & book debts), and bills
receivable and stock.

1.3 NET WORKING CAPITAL:

The net working capital refers to the difference between current assets and current liabilities.
Current liabilities are those claims of outsider, which are expected to mature for payment within
an accounting year & include creditors, bills payable & the outstanding expenses. In other
words we can say that this is the excess of current assets over current liabilities.

NET WORKING CAPITAL = CURRENT ASSETS - CURRENT LIABILITIES

Current assets Current liabilities

Cash Accounts Payable

Accounts receivable Notes payable

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 Notes receivable Accrued expenses

Marketable securities Taxes payable

Inventory Short term loans

Prepaid expenses Bank overdraft

Total current assets Total current liabilities

1.4 NEED FOR WORKING CAPITAL

1. As profits earned depend upon magnitude of sales and they donot convert into cash
instantly, thus there is a need for working capital in the form of CA so as to deal with
the problem arising from lack of immediate realization of cash against goods sold.
2. This is referred to as “Operating or Cash Cycle” .
3. It is defined as “The continuing flow from cash to suppliers, to inventory , to accounts
receivable & back into cash “.
4. Thus needs for working capital arises from cash or operating cycle of a firm.
5. Which refers to length of time required to complete the sequence of events.
6. Thus operating cycle creates the need for working capital & its length in terms of time
7. span required to complete the cycle is the major determinant of the firm’s working
capital needs.

1.5 Kinds of Working Capital

1. Permanent working capital:

Permanent working capital is the minimum amount of current assets, which is needed to
conduct a business even during the dullest season of the year. The minimum level of current
assets is called permanent or fixed working capital as this part is permanently blocked in current
Assets. This amount varies from year to year, depending upon the growth of the company and
the stage of the business cycle in which it operates.

2.Temporary working capital:

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Temporary working capital represents a certain amount of fluctuations in the total current assets
during a short period. These fluctuations are increased or decreased and are generally cyclical
in nature. Additional current assets are required at different times during the operating year.

Variable working capital is the amount of additional current asset that are required to meet the
seasonal needs of a firm, so is also called as the seasonal working capital. For example:
additional inventory will be required for meeting the demand during the period of high sales
When the peak period is over variable working capital starts decreasing or very little during the
normal period.

Determinants of Working Capital:

 Nature of business.
 Terms of sales and purchases.
 Manufacturing cycle.
 Rapidity of turnover.
• Business cycle.

• Changes in technology.

• Seasonal variation.

• Market conditions.

• Seasonality of operation.

1.6 Calculation

Current assets and current liabilities include three accounts which are of special
importance. These accounts represent the areas of the business where managers have the most
direct impact:

 accounts receivable (current asset)

 inventory (current assets), and
 accounts payable (current liability)

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The current portion of debt (payable within 12 months) is critical, because it represents a short-
term claim to current assets and is often secured by long term assets. Common types of short-
term debt are bank loans and lines of credit.

An increase in working capital indicates that the business has either increased current assets
(that is received cash, or other current assets) or has decreased current liabilities, for example
has paid off some short-term creditors.

Management of working capital

Guided by the above criteria, management will use a combination of policies and techniques
for the management of working capital. These policies aim at managing the current assets
(generally cash and cash equivalents, inventories and debtors) and the short term financing,
such that cash flows and returns are acceptable.

 Cash management. Identify the cash balance which allows for the business to meet
day to day expenses, but reduces cash holding costs.
 Inventory management. Identify the level of inventory which allows for uninterrupted
production but reduces the investment in raw materials - and minimizes reordering costs
- and hence increases cash flow; see Supply chain management; Just In Time (JIT);
Economic order quantity (EOQ); Economic production quantity
 Debtors management. Identify the appropriate credit policy, i.e. credit terms which
will attract customers, such that any impact on cash flows and the cash conversion cycle
will be offset by increased revenue and hence Return on Capital (or vice versa); see
Discounts and allowances.
 Short term financing. Identify the appropriate source of financing, given the cash
conversion cycle: the inventory is ideally financed by credit granted by the supplier;
however, it may be necessary to utilize a bank loan (or overdraft), or to "convert debtors
to cash" through "factoring".

Working capital management involves the relationship between a firm's short-term assets
and its short-term liabilities. The goal of working capital management is to ensure that a firm
is able to continue its operations and that it has sufficient ability to satisfy both maturing short-
term debt and upcoming operational expenses. The management of working capital involves
managing inventories, accounts receivable and payable, and cash.

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Why firms hold cash?

The finance profession recognizes the three primary reasons offered by economist John
Maynard Keynes to explain why firms hold cash. The three reasons are for the purpose of
speculation, for the purpose of precaution, and for the purpose of making transactions. All three
of these reasons stem from the need for companies to possess liquidity.

Speculation

Economist Keynes described this reason for holding cash as creating the ability for a firm to
take advantage of special opportunities that if acted upon quickly will favor the firm. An
example of this would be purchasing extra inventory at a discount that is greater than the
carrying costs of holding the inventory.

How firms Manage cash

Firms can manage cash in virtually all areas of operations that involve the use of cash. The goal
is to receive cash as soon as possible while at the same time waiting to pay out cash as long as
possible. Below are several examples of how firms are able to do this.

Policy for Cash Being Held

Here a firm already is holding the cash so the goal is to maximize the benefits from holding it
and wait to pay out the cash being held until the last possible moment. Previously there was a
discussion on Float which includes an example based on a checking account. That example is
expanded here.

Assume that rather than investing $500 in a checking account that does not pay any
interest, you invest that $500 in liquid investments. Further assume that the bank believes you
to be a low credit risk and allows you to maintain a balance of $0 in your checking account.

This allows you to write a $100 check to the water company and then transfer funds
from your investment to the checking account in a "just in time" (JIT) fashion. By employing
this JIT system you are able to draw interest on the entire $500 up until you need the $100 to

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pay the water company. Firms often have policies similar to this one to allow them to maximize
idle cash.

1.7 Working Capital Cycle:

Cash flows in a cycle into, around and out of a business. It is the business's life blood and every
manager's primary task is to help keep it flowing and to use the cash flow to generate profits.
If a business is operating profitably, then it should, in theory, generate cash surpluses.

If it doesn't generate surpluses, the business will eventually run out of cash and expire.
Click here for more information about the vital distinction between profits and cash flow.

The faster a business expands the more cash it will need for working capital and
investment. The cheapest and best sources of cash exist as working capital right within
business. Good management of working capital will generate cash will help improve profits
and reduce risks. Bear in mind that the cost of providing credit to customers and holding stocks
can represent a substantial proportion of a firm's total profits.

There are two elements in the business cycle that absorb cash - Inventory (stocks and
work-in-progress) and Receivables (debtors owing you money). The main sources of cash are
Payables (your creditors) and Equity and Loans.

Each component of working capital (namely inventory, receivables and payables) has
two dimensions ........TIME ......... and MONEY. When it comes to managing working capital
- TIME IS MONEY. If you can get money to move faster around the cycle (e.g. collect monies
due from debtors more quickly) or reduce the amount of money tied up (e.g. reduce inventory

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levels relative to sales), the business will generate more cash or it will need to borrow less
money to fund working capital. As a consequence, you could reduce the cost of bank interest
or you'll have additional free money available to support additional sales growth or investment.
Similarly, if you can negotiate improved terms with suppliers e.g. get longer credit or an
increased credit limit; you effectively create free finance to help fund future sales.

The rapid development of health and quality consciousness in the Indian consumer
along with the growing preference for branded food products has seen the diary industry
evolving to a more sophisticated plane.

India’s diary sector is poised for spectacular growth. Its going rapidly though the per
capital milk consumption has remained low (197 gm per day compared to the world average
of 285 gm) and is expected to grow strongly over the next decade as income rises due to overall
economic growth and increased urbanization. Demand is expected to increase by 15% over the
next 10 years. The opening up of export market is also executed to stimulate growth.

Apart from drinking milk directly, the Indian tea and coffee consumers use milk
consumption of ghee, butter, and lassie also contribute to the demand of milk.

After the split of Soviet Union, India has became the second largest producer of milk
in the world, next to USA. According to the Dr.V.KURIEN the chairman of G.C.M.M.F by the
year 2000 India will overtake USA.

The tremendous potential of the diary industry was given a major fillip with then
finance minister Dr. MAN MOHAN SINGH move to the license of milk industry in June 1992.
the sector which is dominated by the co-operative and government own milk schemes was
thrown open to private sector, which for a long time has been looking for a opportunity to enter
the field.

Although diary is essentially a state subject, NDDB has taken up a project called
operation flood. Operation flood is an integrated Programme for diary development based on
anand model cooperative. Main objectives of operation flood is to build a self sustaining
national diary industry on cooperative lines entire process development in milk production,
procurement processing marketing and production enhancement are to be brought about
through organization owned and managed by farers themselves.

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 Andhra Pradesh is the seventh largest milk producing in India. In 1995 milk production
constituted 11% of Andhra Pradesh agriculture economy and the secretary was one of the
biggest contributors after rise. In terms of gross value added at current price, the sector has
grown at almost 17% in the last 5 years.

Need and Importance of the milk:-

As per medical science and scientific survey the useful of milk for human being is very essential
and there is no age factor and segment of this product to any it is useful to each and every one
in the age hierarchy factor and the milk is one of the dosage acts as vitamins for body after
drink milk. Apart from this few other brands such milky products.

Milk and its products constitute an important part of daily diet. Milk is known as the
most significant and complete food among all the food products, since early ages of human
life. It supplies body building proteins) bone forming minerals health giving vitamins energy
and also gives lactose and milk fats, etc besides providing certain essential fatty acids, it
contains nutritional for easily digestive and assailable form. All these properties make milk an
important food product in universe. In highly developed countries, milk and its products
societies normally enjoy complete freedom from diseases associated with malnutrition, which
is commonly found in developing countries with extreme milk production, and supply methods.

As Indian economy is predominantly agricultural sector, Dairy and Animal Husbandry

form an important activity of its farmers. This Dairying activity constitutes 10% in total G.D.P
Indian agriculture being a seasonal activity; it cannot engage farmers throughout the year.
Certain activities like Dairying, Sheep rearing poultry etc. Will have to be taken up while major
part of the milk is produced in rural area, but the demand for milk is mainly from urban area.
As urban areas have high density of population and its population is mostly engaged in non-
agricultural activities, they have to depend on rural areas for supplying of milk. Normally urban
consumers receive milk through private milk vendors who collect milk from villages.

Procurement of Raw Milk:

Milk is procured to the dairy milk producers especially from the former from 70 villages
with their respective milk co-operative societies. The average milk consumption is nearly per
day. The sales revenues per day is 1.7 lakhs and the monthly turn over will be two crores rupee

In the procurement of milk, there occur reasons. They are

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 1. Season and
2. Unseasoned (lean season)

The ‘season “start from October to February. In this period, the procurement of milk
increases to 10,000 liters per day the sales will be increased to 5000 liter to 6000 liter per day.
This season is called as “FLUSH SEASON” Whereas in unseasoned i.e. from March to
September,

The procurement will be as usual that is 2000 liters per day and the sales will be 6000
liters per day

Chilling:

The procured milk is chilled at chilling centers at 4oC the chilled milk goes to next stage
called pasteurization stage

Pasteurization:

At the pasteurization plant milk is checked for standardized SNF content. Then the milk is
he3ated at 72o C for 16 seconds. At this stage cream and marketed milk (i.e. toned milk) are
differentiated. This cream is used in the preparation of ghee district by pockets.

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 CHAPTER-II

RESEARCH METHODOLOGY

2.1 Research Methodology:-

This survey is conducted to study the panel of selling and distribution process by which
effective in sales. For this purpose we have selected 120 respondents from Kurnool district.
To collect primary data from respondents we designed a schedule. The schedule contains
questions which are as follows:

a) Personal identification

b) Social background.

c) About the study.

The collected information is edited, classified tabulated the data is analyzed & interpreted.
Finally conclusions are drawn and suggestions are being offered.

Sample of the study: - 120 respondents selected who are existing distributors of Vijaya
Dairy Milk to measure channels of distribution.

Sources of data

The following are the main sources of data collection.

Primary data

It is collected through questionnaire – Personal discussions – schedules served – with the

experts.

Secondary data

The data is collected through literature published in various articles relating to manufacturing
process to selling to the customers. The information also gathered from various media – print
and electronic, news papers, magazines, terms and conditions of Vijaya brands and Internet.

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2.2 NEED OF THE STUDY:

Sales and distribution panel to prepared primary for decision-making. They play dominant
role in setting the framework of managerial decisions. The information provided in the
marketing of the product is immense use in making decisions through analysis and
interpretations gathering distribution channels and making it in easier from to get make more
effectively and efficiently.

Sales and distribution is the process of placing the product knowing the supply and
demand. An important role of a marketing channel is to fill the gaps between the production
and consumption process. These gaps can be in relation to time, space, quantity and variety.

Marketing channels play a significant role in reducing these gaps and promoting the
products. Various techniques used for promotion of products are discounts, promotional
schemes, etc.

 A marketing channel is an organized network of agencies and institutions, which link

producers and users to accomplish the marketing task.

 Role of marketing channel is to fill gaps in production and consumption process and
promote products through promotional activities.

Functions of marketing channel include facilitating the exchange process, alleviating discrepancies,
standardizing transactions, matching buyers and sellers, providing customer service, etc

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2.3 Scopes of the Study:-

The dairying, which was brought under public sector, is best with managerial,
organizational and financial problems besides keen competition from the private sector in a
mixed economy system adopted in India.

 For the healthy growth of Dairying under public sector, the problems with regard to
the above aspects have to be first identified and then analyzed to seek solutions.
 Through this study is mainly based upon investigation done by the researcher in
NANDYAL, the major aspects can be generalized with marginal regional variations.
 Though the Government through its various commissions and expert committees has
been trying a number of models for the management of Industry like departmental
supervision, corporative management and now producer's co-operative Federation.
Hence the need for an independent study.

In India, there are many problems in marketing of milk. The main problems are lack of
adequate and timely supply of milk, poor quality and adulteration of milk, leakage of packets,
high & low discrimination of prices of milk etc. in view of these problems, Govt., of India
adopt several measures to improve the marketing system,. Quality and sales of milk in rural
as well as in urban areas in Indian are covered by Dairy, co-operative societies which have
take up the responsibility of improving the quality and sales of milk.

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2.4 Objectives of the study:-

In the present scenario the sales and distribution creating few problems such as late
delivery, mediators involvement with lot of expenses incurring, transportation inadequate in
rural areas and other factor impact like competition with other brands like retail market.

The main important objectives of the study are listed below:-

1. To know the details of sourcing of milk.

2. To know the channels of distribution from its manufacturing unit to end users.

3. To know the media effectiveness for milk sales.

4. To know the consumer buying behaviour.

5. To find the sales of milk per day.

6. To know the consumer opinion on door to door delivery.

7. To know the brand awareness of the market.

8. To find the position of Vijaya Milk in a comparative study with its competitors.

9. To know any defectiveness in the quality, packaging, of the milk.

10. To drawback conclusions based on the information gathered.

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 2.5 Limitations of the study

The following are the limitations of the study

1. As the sample is 120 respondents, the study and findings can be exhibited upon the
selling persons.

2. The sample is insignificant to total distribution channels of district and thus the findings
cannot be generalized.

3. In certain cases the data is collected through observation. Such data may not be accurate
and therefore the findings of the study can be called as near to accuracy only.

4. This study is biased upon only existing sellers and retailers because we cannot take
others who don’t know about the product concept to say about selling and distribution
line to get the product to sale in the market.

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 CHAPTER – III

Review of literature
3.1 Working Capital Management It deals with all the aspects of working capital of which in
depth study has been carried out as discussed below.
1. Bhatt V. V. (1972) widely touches upon a method of appraising working capital finance
applications of large manufacturing concerns. It states that similar methods need to be devised
for other sectors such as agriculture, trade etc. The author is of the view that banks while
providing short-term finance, concentrate their attention on adequacy of security and
repayment capacity. On being satisfied with these two criteria they do not generally carry out
any detail appraisal of the working of the concerns.

2. Smith Keith V. (1973) believes that Research which concerns shorter range or working
capital decision making would appear to have been less productive. The inability of financial
managers to plan and control properly the current assets and current liabilities of their
respective firms has been the probable cause of business failure in recent years. Current assets
collectively represent the single largest investment for many firms, while current liabilities
account for a major part of total financing in many instances. This paper covers eight distinct
approaches to working capital management. The first three - aggregate guidelines, constraints
set and cost balancing are partial models; two other approaches - probability models and
portfolio theory, emphasize future 94 uncertainty and interdepencies while the remaining three
approaches - mathematical programming, multiple goals and financial simulation have a wider
systematic focus.

3. Chakraborthy S. K. (1974) tries to distinguish cash working capital v/s balance sheet
working capital. The analysis is based on the following dimensions: a) Working capital in
common parlance b) Operating cycle concept b) Computation of operating cycle period in all
the four cases. The purpose of
the analysis is to demonstrate operating cycle concepts based on published annual reports of
the firms.

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4. Natarajan Sundar (1980) is of the opinion that working capital is important at both, the
national and the corporate level. Control on working capital at the national level is exercised
primarily through credit controls. The Tandon Study Group has provided a comprehensive
operational framework for the same. In operational terms, efficient working capital consists of
determining the optimum level of working capital, financing it imaginatively and exercising
control over it. He concludes that at the corporate level investment in working capital is as
important as investment in fixed assets. And especially for a company which is not growing,
survival will be possible only so long as it can match increase in operational cost with improved
operational efficiency, one of the most important aspects of which is management of working
capital.

5. Kaveri V. S. (1985) has based his writing on the RBI‟s studies on finances of large public
limited companies. This review of working capital finance refers to two points of time i.e., the
accounting years ending in 1979 and 1983 and is based on the data as given in the Reserve
Bank of India on studies of these companies for the respective dates. He observes that the
Indian industry has by and large failed to change its pattern of working capital financing in
keeping with the norms suggested by the Chore Committee. While the position of working
capital management showed some investment between 1975-79 and 1979-83, industries have
not succeeded in widening the base of long-term funds to the desired extent. The author
concludes with the observation that despite giving sufficient time to the industries to readjust
the capital structure so as to shift from the first method to the second method, progress achieved
towards this end fell short of what was desired under the second method of working capital
finance.

D.VIJAYA BHASKAR REDDY: the view that banks while providing short-term finance,
concentrate their attention on adequacy of security and repayment capacity. On being satisfied
with these two criteria they do not generally carry out any detail appraisal of the working of
the concerns.

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 CHAPTER-IV

COMPANY PROFILE

4.1 COMPANY PROFILE OF VIJAYA DAIRY

The federation has drawn up more comprehensive system for procurement and
processing of milk. A dedicated research cell is actively pursuing way and means of bettering
quality, collaboration with global exports are also being sought, all in an attempt to remain at
the perform of modern dairying in India where quality will be the watch world.
The Andhra passed APDDCF built up the infrastructure needed to meet every
requirement of dairying, the procurement of milk from over 800, 000 dairy formers spread
across Andhra Pradesh, or getting if ready for nationwide distribution. It all happened within
the vast dairy plant network of ADDCF through extensive use of high technology and
management acumen honed to steer such a wide spread operation and brought prosperity to the
state many times.
VIJAYA DAIRY AT A GLANE
Name of the organization : Vijay dairy limited

Name of the business : milk, ghee, butter,

Milk and butter.

Basic raw materials : milk

Procuring the raw material : co- operative milk

Society union. Year of
establishment : 1983

Plat location : Nandyal, Kurnool (DT)

Plant capacity (per day) : 1, 25,000 litters

Promoters : AP Milk Co - operative Society, Hyderabad

ABOUT COMPANY
The Andhra Pradesh dairy development corporation (APDDC) Was started by the
commencement of Kurnool district milk product factory in the year 1974 with the capacity of
12,500 liters per day. After that the APDDC started its main branch at sandal in the year 1983
with the capacity of 1, 25, 000 litters. In the year 1990 it was converted into Kurnool district
Co- operative milk producers union.

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4.2 VISION AND MISSION AND VALUES:

Vision:

The vijaya milk dairy vision is To be the Brand of Choice

Mission

The company mission is to satisfy the customers by giving quality of products them.

Values

 Integrity
 Respect for all
 Passion
 quality

4.3 PRINCIPLES OF THE COMPANY

1. Contribution society:
We will conduct ourselves all times in accordance with the basic management
objective. Faithfully fulfilling our responding as industries to the communities which we
operate.
2. Fairness and honesty:
We will be fair and honest in all our business dealing and personal conduct. No matter
now talented and knowledgeable we may be, without personal integrity. We can neither earn
the respect of others nor enhance our own self – respect. 3. co- operative and team spirit:
We will pool abilities to accomplish our shared goals. No matter how talented we
are as individuals, without co operative and team spirit we will be accompany in name only

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4. Untiring effort for Improvement:
We will strive constantly to improve ability to contribute to society through
our business activities. Only through this untiring effort can we fulfill our basic
management objectives and help to realize peace and prosperity.
5. Courtesy and humanely:
We will always be cordial and modest, respecting the rights and deeds of
others in order to strengthen healthy social relationships’ and improve the quality.
6. Adaptability:
We will continually adapt our thinking and behavior to meet the every changing
condition around us, taking care to act in harmony with nature to ensure progress and
success in our Endeavour’s.
7. Gratitude:
We will act out of a sense of gratitude for all the benefits we have received,
confidant that this attitude will be a source of unbounded joy and utility, enabling us to
overcome any obstacles we encounter.

Range of products
Types of products:
• Vijaya gold milk
• Vijaya to lend milk
• Vijaya ghee
• Vijaya butter
• Vijaya buttermilk
• Vijaya flavored milk

Manufacturing Process:
Receiving the milk
↓
Grading sampling and testing
↓
Pre heating (35-40 c)
↓
Filtration/clarification

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↓
Cooling and strong (5 c are below)
↓
Standardization
↓
Pasteurizing (63 c/30Mts)
↓
Homogenate (2500pst)

4.4 PROCESSING OF MILK PASTEURIZATION:

The term pasteurization, as applied to market milk today, refers to the process of
heating every particle of milk to at least 630C 0r 145F for 30 minutes. After pasteurization,
the milk is immediately cooled to 5c (41F) or below. As it difficult to exercise strict
supervision over milk supplies. And it becomes necessary to pasteurize milk so as to make
it safe for human consumption by destruction of cent percent pathogenic micro organisms
and to improve the keeping quality of milk by destruction of almost all-spoiling organisms.

STANDARDIZATION:

Standardization of milk refers to adjustment of the fat and or solids not fat
percentage of milk to a desired value so as to conform to the legal or other requirements.
Milk is standardized. Some the addition of skimmed milk will do. Downward
standardization for fat is practiced in many countries. The surplus is transformed into
butter or ghee.

The prevention of Flood adulteration Act defines standardized milk as cow and
buffalo milk in which the milk fat content is adjusted to 4.5 percent or more with the SNF.
At least 8.5 percent high milk fat content may be adjusted downward by removing milk or
fat or by adding skimmed and or reconstituted milk. In the case of low milk fat content,
fat may need to be added to assure the legal minimum.

Standardized milk may be marketed as such or use for making certain products.
Standardization ensures milk of practically uniform and constant composition and nutritive
value to the consumer. The surplus fat can be converted into Butter and Ghee.
Consequently milk can be supplied at low cost. Standardized milk is easier to digest.

RECOMBINATION:

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 Kolkata, Delhi and Chennai during 1970-75 in butter oil and skimmed milk power
donated under the World Food Project The technique of recombination involves
dispersion of milk Powder in water lat about 45e addition of milk fat to make a mixture,
filtration and Clarification of the mixture, follow3lted by homogenization and
pasteurization alt 75c for 15 seconds.

The physical, the chemical and functional property of raw material used in such
preparation determines the flavor, acceptability, and shelf life of the recombined increased
solubility and improved dispensability results into accord potable milk. The introduction
of recombined toned milk.

TONING:

Toned milk refers to milk obtained on addition of water and skimmed milk powder
to while milk under the prevention of Food Adulteration Rules 1976. Tied nuke skied
contain a minimum of 3 percent fat and 8.5percent solids not fat throughout the country.

Toned milk is also called single toned milk and is prepared by toning milk with fresh
separated milk reconstituted from spray-dried skimmed milk powder.

Sometimes, milk is double-toned in order to provide cheap Milk (with fat content
of only 1.5 per cent) to weaker section. Toning is a process of reduction fat content that is
mainly used for providing cheap milk to the poor.

MILK POTENTITAL:
Milk is the only natural product that is daily used by people at regular intervals for
different purposes. The nutritional potential is ideal in quality and balanced to satisfy
human-acid requirements. The contents of minerals and vitamins are unique both in
proportion and in quality nutrients that are essential for man's growth land development.

Milk has a very complex comp position its constituents are disposed in aqueous
advantages such as chlorides, sodium and potassium are present in molecular dispersion
phosphate in colloidal dispersion and the fat in emulsion.

The average per capital consumption of milk in India is only 212GM per day alls
against the word average of 303 GM Malnutrition can be easily wiped out in our country
by developing the dairy industry.

4.5 COMPANY PRODUCTS:

In Biblical items, the deal home was m a Maud flowing in milk and honey even today
milk is considered the perfect food. Dairy products re4ferf to milk products originated from
whole milk. The prevention of food. adulteration (PFA) Rules, 1995
(as amended up to Jan151991) define milk (dairy) products obtained from milk, such
- 22 -
as cream, milk ice, condensed skimmed milk, infant milk food , milk power, ghee,
butter.

The importance of milk and milk pr5oducts in our country has been recognized
since indigenous products have developed more or less as an art. Indian dairy industry
is rapidly developing.

- 23 -
Branding of Traditional Milk Products:
Among the traditional milk products ghee brands are sager, Milkman
(Britannia) Amul GGMMF), Aarcy (Marco Ltd) Vijaya (AP Dairy Development
Cooperative Federation) Verka (Punjab D ai9ry Cooperative) every day (Nestle) and
farm Fresh (Work hard)

With increasing urbanization and charging consumer preferences, there is

possibility of large scale manufacture of indigenous milk product also. The equipments
in milk manufacture have versatility and can be adapted for several products for
instants, equipment used to manufacture yogurt also can be adapted for agree scale
production of India curd products (dalu and lassie). Significant research work has been
done dairy equipments under the aegis of NDDB.

Reaching out the world:

APPSSCF began its exports efforts thirteen years ago and Hs gained
significant ground abroad. It has spread its marketing network in the gulf and is
exploring the possibility of exporting dairy products like butter, cheese spread, UHT
milk, sterilized cream etc. To other countries the federation has been meeting the tastes
of divergent cultures, while bringing back the pleasure of home to non – resident
Indians.

Today, APPDDCF is in the process of acquiring capabilities to join the big

league in dairy technology from USA, UK, AUSTRALIA, NEW ZEALAND and THE
NETHERLANDS.

Export potential:

India is the potential become one of the leading players in milk and milk
product exports. The country is located amidst major milk - deficit countries in Asia
and Africa. Major importers of milk and milk products are china, Bangladesh, Hong
Kong, Singapore, Thailand , Malaysia , the Philippines, Japan, the UAE and Oman all
located close of milk production is significantly low in India.

To boost exports, the industry needs to focus on quality and productivity

significant investment has to able made in milk procurement equipment and chilling
and refrigeration facilities. Also, training has to be imparted to raise the quality up to
intonation standards. To have an exportable surplus in the long term and also to
maintain cost competitiveness, it is imperative to increase the productivity of Indian
cattle.

- 24 -
 4.2 COMPANY INDUSTRY

India has the potential to become a leading exporter of milk and milk products.
due To low labor cost of milk production are significantly low here. To boost exports
the dairy Industry needs to focus on quality and productivity. Significant investment has
to be made in milk procurement equipment and chilling and refrigeration facilities

Dairy industry contribute significantly to the economy as well as to the rural

poor by providing an opportunity to uplift them by generation addition income through
it dairying has been practical as rural cottage industry since ages. India accounts for one
sixth of cattle and half of buffalo population of the world. Among 70million rural
households in India in 2001.those operating up to two from 42percent of the households
and 37percent are landless.

The government of India under various programmers for benefiting the small rural
milk producers and the underprivileged urban consumers today in a state of dynamic
transition with rapid development in milk production in milk production and marketing
by virtue of the efforts makes India’s dairying industry. The direct contribution of
dairying to the rural sector through additional income and employment to the producer
is well recognized

4.2.1 REVIEW OF DAIRYING IN INDIA:

The main study of Indian farmers has been agriculture and allied occupations
farm animals especially cattle have an integral part of rural India for thousands of years
During the year 1920 military farms were established to supply adequate raw milk to the
stators these military farms were well maintained and even their stages were raising
improved animals else were in urban areas dairying was largely left in hands at
traditional producers middlemen debates of private vendors.

- 25 -
 4.2.3 DAIRY SCENARIO:

Milk is an important nutritious food it is more important to infants and old people
large number of people depends upon milk as an important source of nourishment. India
with its most population gives sentimental attachment to milk as a

ood food. Milk id substance with 1029to 1035 specific gravity and contains fat minerals
proteins and vitamins the government of India encouraged co-operative societies for
production of milk and setting up of process of large milk units.

India is today the second largest producer of the milk in the world. The production
of milk in India is 577 lashes of tones per year. it may be seen that the milk procurement
by the organized sector is presently, a fraction of the total milk available. There is sufficient
scope for procurement of milk and for the growth of the milk sector. With high quality
technology and expertise available indigenously and with the milk and milk produces order
announce by the government enabling the private sector to deal directly with the farmer.

Organized handing of milk would lead to proper procurement measures, which

would in turn be beneficial to farmers. Remunerative price to farmers would lead to better
care of cattle and thereby set in motion a healthy cycle of increased availability of good
milk.

Today, India is 'The oyster' of the global dairy industry. it offers opportunities to
entrepreneurs worldwide, who wish to capitalize on one of the world's largest and fastest
and growing markets for milk and milk products . a bagful of pearl's wants the international
dairy processor in India . the Indian dairy industry is rapidly growing trying to keep pace
with the galloping progress around the world .as the expands his overseas operations to of
the India many profitable option to a wait him. He may transfer technology, sign joint
venture or use India as a sourcing enters for regional exports. The liberalization of the
Indian economy beckons to MNC’s and foreign investors alike.

India dairy sector is expected to triple its production in the next 10 years in view
of expanding potential for export to Europe and the west. More ever with WTO regulation
expected to come into force in coming year all the developed countries which are among
big exports today would have to with draw the support and subsidy to their domestic.

4.2.4 WORLD FOCUS ON INDIAN DIARY:

Indian dairying is emerging as a sunrise industry India represents one of the world
largest and fastest growing for milk and milk products due to the increasing incomes

- 26 -
among the 250 million strong classes. Two main reasons for the world focus on India are
one, the low cost economy; and two the liberalization process initiated since 1991 other
important factors include: low inflation rate, inexpensive Labor the presence of the world
third largest pool of technical man power, the world’s largest democracy. Efforts to
increase milk product by dairy farmer are strongly influenced by the degree to which
demand signals transmitted signals are transmitted through the marketing system. Co-
operative has played an important role in transmitting the message of urban market demand
to them.

4.2.5 COMPETATIVE ADVANTAGES OF INDIAN DAIRY:

In the emerging liberalizes global scenario, trade distorting agricultural policies
has been the focus of the GATT multilateral trade negotiation. With the liberalization of
agricultural trade under the new GATT regime, the heavy subsidies prevalent in the dairy
sectors in the countries of the European Union as well as in the us will have to be brought
down in the next few years

The competitive advantages of the Indian dairy industry are then considered to be
substantial. With the continued investments in building up milk production .India can
emerge as a major export of dairy products, at least by the early part of the next century,
even though an prospect may meet with considerable opposition from the advanced dairy
nations and this oppositions is likely to focus significantly on equality issues.

It is therefore necessary to evolve a long term dairy industry policy that will not
only sustain but also enhance production and productive levels. This would require
ensuring remunerative and increased return, to the farmer while ensuring supply of
increased fluid milk needs of the urban population at reasonable prices working capital
KDMPMACU LTD.

STRENGTHS:
Demand is absolutely optimistic margins are quite reasonable even on packed liquid
milk product mix. abundance of raw material, and locally available professionally
trained technical human resource poll.

WEAKNESSES:
Perish ability:

- 27 -
 Pasteurization has overcome this problem partially. UHT gives milk long life
surely, many new processes will follow to improve milk quality and extend its shelf
life.

4.2.6 LACK OF CONCEPT OVER YIELD:

Theoretically, there is little control over milk yield. However, increased awareness of
developments like embryo transplant, artificial inseminations, and properly managed
animal husbandry practices. Coupled with higher income to rural milk producers, should
automatically lea to improving in milk yield.

Problematic distribution:
If ice-cream can be sold virtually at every nook and corner. Why can't sell other
dairy products too? It is only a matter of time before we see the emergence of a cold chain
linking the refrigerator at the consumer's home.

Competition:
With so many people entering this industry, competition has to be faced as a ground
reality. The market is large enough for many to serve out their niche.

OPPORTUNITIES:
Value addition:
There is large scope for innovations in product development. Packaging and
presentation. steps should be taken to introduce value added products like ice creams,
pannier , kola, flavored milk, dairy sweets, etc. this will lead to a greater presence and
flexibility in the market place along with opportunities in the field of brands building.
Cultured products like yogurt and cheese lend further strength both in terms of utilization
of resource and presence in the market place. Other products or infant foods as nutritional.

EXPORT POTENTIAL:
Exports to exploit potential is already on amul is exporting is Bangladesh, Sri
Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will
increase tremendously for the export of agriculture products in general and dairy products
in dairy.

- 28 -
THREATS:
Today milk vendors occupy the price of the place in the industry. Organized
dissemination of information about the harm that they are doing try to producer and
consumer should see a steady decline in their importance.

Strength and opportunities for outweigh weakness and threats. Strength and
opportunities are fundamental. While weakness are strength are transitory, any investment
idea can do well only when you have entrepreneurship, innovative approach, and values
(of quit ethics). The Indian dairy industry, the following is deli censing, is attracting large
number of entrepreneurs. Their success in dairying in depending on factors such as an
efficient yet economical procurement network, hygienic and cost effective processing and
innovation in the market place.

CONSUMER HABITS AND PRACTICES:

Milk has been integral part India food for centuries. The per capital availability
of milk in India as grown for 172 gm for person for a day in 1972 to 182 gm in 1992 and
203 gm in 1998 -99. This is expected to increase to 212gms for 1999-
00.
However a large part of the population cannot afford milk. At these for capital
consumption it is the below the world average of 285 gm and every less than 220 gm
recommended by the Nutritional advisory committee of Indian council medical research.

There are regional disparities in production and consumption also. The per
Capita A viability in the north is 278 gm, west 174 gm, south 148 gm and in the east Only
93 gm per person per day. This disparity is due0 to concentration of milk Production some
pockets and high cost of transportation. Also the output of milk In cereal growing areas is
much higher than elsewhere which can be attributed to Abundant availability of fodder,
crop residues, etc which have a high food value For milk animals.

In India about 46 percent of the total milk produced is6 consumed in liquid
Form and 42 per cent is converted into traditional products like cottage butter, ghee, Paner,
khoya, curd, Malia, etc. Only 7 per cent of the milk goes in to the production of Western
products like milk powders, processed butter and processed cheese. The Remaining 54%
is utilized for conversion to milk products. Among the milk products
Manufactured by the organized sector some of the prominent ones are ghee , butter,
Cheese, ice creams, milk powders, malted milk food, condensed milk in facts foods Etc
of these ghee alone accounts for 85%.

- 29 -
 It is estimated that around 20% of the total milk produced in the country is
consumed at producer-household level and remaining is marketed through various
Cooperatives, private dairies and venders. Also It is one of the total produce more than
50% is Proceeded by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid
Form and rest is used for manufacturing processed value added dairy products for
Private dairies only 45% is marketed in fluid form and rest is processed into value Added
dairy products like ghee, machine etc. Still, several consumers in urban areas prefer to buy
loose milk from vendors Due to the strong perception that loose milk is fresh. Also the
correct level of Processing and packaging capacity limits the availability of packaged milk.
The preferred dairy animal in India is buffalo unlike the majority of the world Market,
which is dominated by cow milk. As high as 98% of milk is produced in rural India, which
caters to 72% of the total population? Whereas the urban sector with 28% Population
consumes 56% of total milk produced. Even in urban India, as high as 83% of the
consumed milk comes from the unorganized traditional sector. Presently only 12% of the
milk market is represented by packaged and branded pasteurized milk valued at about Rs
8.000 cores Quality of milk sold by local areas also these vendors add water and caustic
soda, which makes the milk unhygienic.

India's dairy market is multi-layered. It's shaped like a pyramid with the base made up of
a vast market for low- cost milk .The bulk of the demand for milk is among the poor in
urban areas whose individual requirement is small, may be a glassful for use as whitener
for their tea and coffee. Nevertheless, it adds up to a sizable volume - million liters per
day. In the major cities lies in an immense growth potential for the modern sector.

Presently, barely 778 out of 3,700 cities and towns are served by its milk distribution
network, dispensing hygienically, packed wholesome, quality pasteurized milk. According
to one estimate, the packed milk segment would double in the next five years, giving both
strength and volume to the modern sector. The narrow tip at the top is small but affluent
market for western type milk products.

- 30 -
 CHAPTER: 5

DATA ANANYSIS AND INTERPRETATION

WORKING CAPITAL ANALYSIS

4.1. Statement showing changes in working capital of Jagat Dairy & Farm Products
(P) Ltd during the year 2016– 2017

2016
Particulars 2017 Changes in working capital

Increase Decrease

Current assets:

Cash 8,49,980 10,12,820 1,62,840 -

Sundry Debtors 19,20,661 26,18,716 6,98,055 -

Stock 31,81,942 44,90,006 13,08,064 -

Bills Receivables 3,61,450 2,03,500 - 1,57,950

Total Current assets(A) 63,14,003 83,25,042

Current liabilities:

Provisions 6,18,715 5,68,972 49,743 -

Sundry Creditors 4,98,480 5,19,705 - 21,225

Bills Payables 2,10,796 2,56,541 - 45,745

- 31 -
 Other current liabilities & 2,80,980 5,60,345 - 2,79,365
expenses

Total Current Liabilities(B): 16,08,971 19,05,563

Working capital(A-B) 47,05,062 64,19,479

Net Increase in Working 17,14,417 - - 17,14,417

capital

64,19,479 64,19,479 22,18,702 22,18,702

Interpretation

1. From the above table it observed that the working capital of the company has
increased to Rs.64,47919 in the year 2012 from Rs.47, 05,062 in the year
2013.
2. Because the current assets have increased than current liabilities and the
networking capital has been increased17,14,417.

- 32 -
 Table – 2. Sales of Milk Per Day

Sales of milk in ltrs/day No.of Respondents Percentage

1-20 32 27

21-50 44 37

51-100 12 10

101-200 20 16

Above -200 12 10

Total 120 100

Figure - 2: SALES OF MILK PER DAY.

40
35
30
25
20
15
10
5
0
Loose Milk Packet Milk Both

Usage

- 33 -
INTERPRETATION:- The above table shows that sale of milk in ltr /day. It was
found 27% of respondents felt that it is between (1-20), 37% is between (21-50),
10% is between (51-100), 16% is between (101-200), and above 200 respectively.

It was observed that the milk being sold from kiranam shop, bakery, pan shop.
The average sale of particular outlet ranges from 30-40 ltr a day. and most the sales it
seen at grocery shops.

Table - 3 Methods of Sourcing

Sources No.of Respondents Percentage

Manufacture 20 16

Agents 85 71

others 15 13

Total 120 100

Figure - 3: Methods of Sourcing

80
70
60
50
40
30
20
10
0
manufacture agents others

Sources

- 34 -
INTERPRETATION

From the survey conducted on the retailers for knowing the details regarding
sourcing of the milk it is found that 16% of the respondent felt that the source is
through manufacturer, 71% through agents, 13% through others.

As there is no time to the retailers to purchase direct milk from the manufacture
so it sources is low. As the agents are supplying in the tri- cities the ratio is high and
the direct sourcing of milk from manufacture is to government hostels and villages.

Table - 4 Regular Customer Visiting Retailers

NO.OF No.of Percentage

CUSTOMERS Respondents
VISITING

1-20 60 50

20-30 26 22

30-40 19 15

40-50 15 13

Total 120 100

Figure - 4: Regular Customer Visiting Retailer

- 35 -
 60

50

40

30

20

10

0
1 20-30 30-40 40-50

INTERPRETATION

The survey conducted on the retailers to know the number of customers visiting
per day it was found 50% of respondents felt that it is between 10-20, 22% are
between 20-30, 15% are between 30-40, and 13% are between 40-50.

- 36 -
Table - 5 FACILITY OF HOME DELIVERY

Opinion No. of respondents Percentage

Yes 22 18

No 98 82

Total 120 100

Figure - 5: FACILITY OF HOME DELIVERY

yes no

- 37 -
Interpretation:-

From the above table shows the percentage of respondents making home delivery, it
is found that 82% respondents no and 18% yes.

Vijaya dairy milks to improve home delivery of milk to increase it sale and satisfy
the customers.

Table - 6 Brand Wise Sale Per Day

Ltrs /Day Percentage

Brand Name
Vijaya 5000 24

Mulkanoor 6200 28

Nagarjuna 1500 07

Thirumala 4000 19

Vyshanavi 3500 16

Others 1300 06

Total 120 100

Figure - 6: Brand Wise Sale Per Day

- 38 -
 Brand

30

25

20

15

10

0
Vijaya Mulkanoor Nagarjuna Thirumala Vyshanavi others

INTERPRETATION

From the survey conducted on retailers to know the brand wise sales Vijaya has
24% of sales, Mulkanoor 28%, Nagarjuna 07%, thirumala 19%, Vyshanavi 16%,
and others 6%.

It is found that the highest sale comes from Mulkanoor and next followed
by Vijaya at 2nd position.

Table - 7 Perception Regarding Vijaya.

Perception Response Percentage

Excellent 26 22
Good 57 47
Average 26 22
Poor 11 09
Total 120 100

Figure - 7: Perception Regarding Vijaya.

- 39 -
 50
40
30
20
10
0

INTERPRETATION

According to the table –7 and the graphical statement – 7, the data regarding
respondents which reveals positive perception regarding Vijaya is good around 47%,
excellent and average 22%, poor 9%. So that the perception regarding Vijaya brand
is good.

Table – 8. Prompt delivery of Vijaya Milk without any delay.

Opinion No. of Respondents Percentage

Yes 71 59

No 49 41

Total 120 100

Figure – 8 Prompt delivery of Vijaya Milk without any delay.

- 40 -
 60

50

40

30

20

10

0
yes no

opinion

INTERPRETATION

From the above table we come to know that 59% of people says yes and so
Vijaya has its prompt delivery without delay. And 41% says no it has the problem in
prompt delivery.

Defects in Vijaya milk delivery.

No.of
Attributes Percentage
Respondents
Packaging 31 26
Difffer in
47 39
Quality
Quantity 02 02
None 40 33

Total 120 100

Figure – 9: Defects in Vijaya milk delivery.

- 41 -
 45
40
35
30
25
20
15
10
5
0

INTERPRETATION

From above table we can. Say that Vijaya as defects in packaging with 26%
defect in quality 39% defect in quantity 2% and none 33%.

Vijaya milk has to improve its packaging and quality.

Table 10. Necessary of Advertisement

Opinion No.of respondents %

Yes 92 77

No 28 23

Total 120 100

Figure – 10: Necessary of Advertisement

- 42 -
 NO 23

YES 77

INTERPRETATION
From above Figure we can find that there is a necessary of advertisement 77%
and no 23% to improve the sales.

Table 11: Media Effective for Advertisement

Media No.of Respondents Percentage

T.V 17 14

Newspaper 20 17

Pamphlets 28 23

Wall painting 56 46

Total 120 100

Figure – 11: Media Effective for Advertisement

- 43 -
 50

40

30

20

10

0
T.V newspaper Pamphlets Wall Painting

media

INTERPRETATION:

From the - above table and graph we can found that wall painting as the highest rate of

46% then pamphlets 23%, news papers 17% and T.V. 14%.

It is better to have wall paintings only. Its low budget and effective people
remember for long time.

Table - 12 Retailers opinion Chart

Brands No.of Respondents Percentage

Vijaya 31 26

Mulkanoor 38 32

Nagarjuna 12 10

Thirumala 08 06

Vyshnavi 18 15

Others 13 11

Total 120 100

Figure – 12: Retailers opinion Chart

- 44 -
 Brand
35

30

25

20

15

10

0
Vijaya Mulkanoor Nagarjuna Thirumala Vyshanavi others

INTERPRETATION

From the above picture we can able to know that the opinion of retailers says
32% mulkanoor, 26% to Vijaya, 10% to nagarjuna, 06% to thirmala, 15% to vyshanavi
and 11% are others ( reliance, priya, amul, Nestle)

Table - 13 Increase in sales.

Opinion No. of respondents Percentage

Yes 52 43

No 68 57

Total 120 100

Figure - 13: Increase in sales.

- 45 -
 Yes No

INTERPRETATION

From the above information we can say that the sales can be increased yes 52%
and No is 68%.

- 46 -
 CHAPTER – V I

FINDING & CONCLUSION & SUGGESTIONS

6.1 FINDINGS:

1. The current ratio during the study period 2010-2015. The ratio was 2.45: 1 in 2010-
2011 which increases to 3.24: 1 in 2011-2012 and decreased a bit 2.94:1 in 2012-
2013. In 2013-2014 the ratio was decreased to 2.71:1 but it is above from the
standard ratio 2:1. Show it is suggested to company that it should continue are more
improve the ratio
2. The highest ratio was recorded as 1.6:1 during the year 2011-2012.Quick ratio is
higher than the standard ratio that is 1:1.It indicates that the firm is investing
sufficient amount in the Quick assets to meet the current liabilities. Due to this, the
firm's liquidity position is good. Before 2014-2015 the liquidity position is good.
3. The ratio was 0.96 in 2010-2011 which increased 1.01 in 2011-2012. The highest
working capital ratio’s was recorded as 1.116 during the year 2014- 2015 and
decrease the working capital ratio in the year 2010- 2011 and 2013- 2014. It
indicates that the current asset is higher than the current liabilities
4. statement of changing working capital during 2011-2012 has net increase in
working Rs1,01,08,843
5. statement of changing working capital during 2012-2013 allocation for the which
has net increase in working capital Rs. 3,62,16,357.
6. statement of changing working capital during 2013 – 2014 which has net increase
in working capital Rs.1,29,61,147.
7. Statement of changing working capital during 2014-2015 Which has net increase
in working capital Rs. 1, 02, 75,032.
8. statements of changes working capital during 2015- 2016 which has net increase
in working capital Rs. 1,02,75,032.

- 47 -
6.2 SUGGESTIONS

1. The Dairy has to maintain existing quality because all consumers are highly
satisfied the quality of Vijaya.
2. The company has to use thick packing covers to avoid leakages.
3. The company has to design variety type of packing covers to attract the
customers.
4. The company has to improve the service by providing 24 hours Milk booths of
Vijaya brand Milk.
5. The company has to introduce 1 ½ Liter and 2 Liter packs to attract huge family
consumers.
6. The company has to introduce tetra packs.
7. The company has to reduce the price to attract all type of consumers.
8. Brand awareness is to be promoted by APDDCF.LTD .in order to keep the
existing customers intact and attraction of new customers towards Vijaya brand.
9. The company has to offer some additional quantity of milk in festival days to
attract more number of customers.
10. The company has to sponsor some educational programmes in the popular TV
channel.
11. Attractive billboard hoardings should be placed in main comers of the Tri City.
12. The company has to establish more number of milk booths in main corners of
the cities in order to improve the sales.

- 48 -
- 49 -
6.3 CONCLUSION:-

1. According to survey the most of respondents prefer to use one liter milk daily.

2. From the survey it was found that about 40% of respondents are using packet
milk.

3. Survey shows that most of the Consumers (50%) prefer to use the milk for the
purpose of making tea.

4. According to survey, it was found that Vijaya brand milk stands first in
supplying the milk followed by Jersey.

5. Survey shows that most of consumers are aware of Vijaya brand by milk booths.

6. From the survey, it was found that advertisement plays an important role in
promoting the milk.

7. According to the survey it was found that consumers are giving preference to
quality and availability.

8. From the survey we can conclude that most of the consumers do not want switch
over to other products.

9. Consumers rated Vijaya brand is the best brand in the quality compared to other
branded milk products.

10. According to survey most of the respondents expressed there opinion that they
are not facing any problems while using the Vijaya brand.

- 50 -
 CHAPTER-VII

BIBILOGRAPHY

1) Company profile:-

Website:-

2) Theoretical Aspects:-

Marketing Management – V.S.RAMASWAMY & S. NAMAKUMARI

(Planning, Implementation & Control).

Philip Kotler: Marketing Management – Analysis, Planning,

Implementation and ontrolling.

Pran choudhary & Elliot. R & ALAN TOOP: Successful Sales Promotion
– Orient Longman, New Delhi,

WWW.APDAIRY.COM

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