Report on Industrial Visit to

MOTHER DAIRY

Patparganj, New Delhi. on January 9th, 2012

Submitted to: Prof. Sadiqur Rehman
By :

Sahil Manchanda
PGDM-IB (2011-13) Roll No: FT-IB-11-339

Table of Contents

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S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Preface Acknowledgement

Particulars

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National Diary Development Board Mission and vision Mother diary profile Products Of Mother diary Supply Chain Management Suggestions & Recommendations References

Preface
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This visit was organized to make student understand the complete process of supply chain management of an FMCG organization, Mother Dairy. During this visit, I learn how the company manage the purity, freshness & nutritious value of milk during various stages. It starts from collection of milk from farmers from various states, check the Fat & SnF levels and send that purified and properly checked milk to the main plant to make that a complete nutritious product for consumers. I have also examine how some middle-man adulterated the milk by adding Urea & other chemical liquid to make milk more thinner and less nutritious product to increase their sale & profit. After that I also examine during this visit how milk is processed and stored in large storage valves for longer period of time to avoid any shortage during supply. With addition to this, Mr. Jose also explains us the distribution channel of Mother Dairy and various places from where consumers can purchase milk easily. For example COW (container on wheel), its a door to door milk delivery system to consumers, though milk is sold at little bit higher price as compare to normal Mother Dairy outlets. Mr. Jose also explained us the hygiene policy maintained by Mother Dairy for their plants, machinery, storage tanks, delivery tanks and health policy of its employees with routine check-ups.

ACKNOWLEDGEMENT

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With immense pleasure I would like to present my report on visit to Mother Dairy to IILM GSM Business Engagement Team. It has been an enriching learning experience for me to visit Mother Dairy plant. I would like to thank Mr. Jose for giving us a detailed information of each department and various procedures followed by Mother Dairy for there suppliers,distributors, consumers and employees as well.

NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)

The National Dairy Development Board (NDDB) was designed in 1969 on Anand Dairy Cooperative outlines of creating district cooperative of milk producers at village level which Page 4

aim at collection of whatever amount of milk they produce and payment to them according to the quality of milk they supply. Then this milk is processed and supplied to the people at metropolitans and other cities at nominal charges. For about 5 yr., NDDB was dormant till the time they received presents of Whole Milk Powder and Butter Oil from European Union and came into action with the help of Indian Dairy cooperation. Operation flood was started in 1970 under the guidance of Dr. Kurein, Chairperson NDDB, Anand and Mr. Jamnadas Patel in Khera, Gujarat. The objectives of Operation Flood are: To buy the milk from the farmers and villagers as much milk as they could supply at reasonable prices and keep the price of milk stable whole year. To operate, procure, process and market milk and milk products. Production of good milk after its qualitative and quantitative estimation. System to eliminate middleman. Providing technical inputs and services to yield of milk animals. Organizing an efficient transport system to collect milk from villagers. Set up of balancing dairies and storage system to convert excess milk to milk powder and butter oil. Train personnel to plan and manage the system as well as operate the services described. To meet out these objectives, NDDB started dairy plants all over India and Mother Dairy was one of them. It was set up in 4 major cities at Delhi, Mumbai, Chennai and Kolkata. Operation flood was a major dairy development program. Funds were generated by the sale of dairy commodities donated by the World Food Program (FAO-UN) which assisted project to carry out its mission. This included establishing dairy cooperatives in rural milk sheds, setting of animal husbandry units, constructing modern dairies in cities, organizing storage and long distance transportation and project planning with manpower development. The first phase of operation flood was completed in 1979, followed by second phase (1979-1988), assisted by European Economic Community. Its third phase ended in 1996.

MOTHER DAIRY VISION

With total commitment and teamwork, we at Mother Dairy shall strive to delight our customers with quality products and services. Page 5

We shall create an environment where employees feel happy to work. Through innovation, consistent learning and continuous improvement, we shall achieve sustained growth and excellence and provide remunerative returns to farmers and other stakeholders.

MOTHER DAIRY MISSION

We are the market leader in fluid milk in Delhi. Our mission is to retain the leadership and further serve our customers in and around Delhi by providing quality milk and select dairy and food products. We shall strive to delight our customers by providing regular and timely services at convenient points under clean and hygienic conditions, with a product mix for different income segment. We shall create an environment of teamwork where employees feel happy to work. By innovation, continuous improvement, training and development and most efficient use of resources we shall achieve consistent and sustained growth and provide remunerative returns to farmers and other stakeholders. Mother Dairy has received the ISO 9002 certificate in 1994 for the quality of its food products.

MOTHER DAIRY PROFILE

Mother Dairy was set up under the operation flood project on second December 1974. It is equipped with latest technology. Products are prepared as per the PFA standards. The dairy was established on behalf of the Govt. of India, Ministry of Agriculture (Dept. of Animal Husbandry and Daring). Mother Dairy is being managed by NDDB as a subsidiary unit retaining its independent character. For the purpose of managing the dairy NDDB appoints managing committee. All the policy matters decided by the management committee but the execution of all the policy decision and management of dairy rests with General Manager.

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PRODUCTS
S.No. Product Name 1. Milk and its Products Brand Name Mother Dairy Items Packaged Milk (Full Cream, Standardised, Toned, Double Toned Skimmed and Pro-biotic), Butter, Dahi, Ghee, Cheese, Ice-Creams, UHT Milk, Lassi & Flavoured Milk. Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil.

2.

Edible Oils

Dhara

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3.

Fresh and frozen fruit and Safal vegetable products

Fruits, Vegetables, Rice, Processed items (jams, juices, ketchup, pulp, etc.)

Mother Dairys has a varied range of products. The different products categories are explained below: MILK: Packaged Milk is available in 5 different variants: 1. Full Cream milk - milk fat 6%, SNF 9% 2. Standardised milk - milk fat 4.5%, SNF 8.5% 3. Toned milk - milk fat 3%, SNF 8.5% 4. Double toned milk - milk fat 1.5%, SNF 9% 5. Skimmed milk - milk fat 0.5%, SNF 8.7% Other than packaged milk, Bulk Vended Token Milk is also available which is distributed through vending machines installed in different regions of the city. The high quality variant of milk is also available under the brand name ok MILK. It is thick & completely natural, containing no preservations. It is referred with name of UHT (Ultra Heat Treatment) Milk. Mother Dairy also manufactures flavoured milk under the brand name of CHILLZ. It is available in three flavours namely Kesar Elaichi, Vanilla and Chocolate flavour. Milk Products: Various milk products of Mother Dairy are: 1. Mother Dairy Ghee 2. Mother Dairy Butter 3. Mother Dairy Cheese 4. Mother Dairy Dahi (Curd) 5. Mother Dairy Lassi

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Except all these milk products Mother dairy also manufactures Ice Cream under two categories namely CHILLZ and Mother Dairy Ice Cream. PROBIOTIC: It is the latest product range launched by Mother Dairy. It mainly contains BB12 friendly Bacteria which results in better digestion and absorption of nutrients. It also contains probiotic fibre which also results in better digestion. The various products in this category are: 1. b-Activ Probiotic Dahi 2. b-Activ Probiotic Lassi 3. b-Activ Curd 4. Nutrifit (Strawberry & Mango) SAFAL: Range of fresh foods & vegetables, frozen vegetables, fruit pulps and fruit juices etc. DHARA: It has a popular range of edible oils in different types as refined soya bean oil, refined sunflower oil and filtered ground nut oil etc.

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Supply Chain Management

1) Milk Procurement: - Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Milk is received from farmer cooperatives through insulated road/rail tankers at very low temperature in order to retain its freshness.

2) Milk distribution: -79 tankers in the morning and 75 tankers in the evening bring in milk from the regional collection centres. After collection the same tankers are utilized for the delivery of the processed milk to the vendors and outlets. Mother Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of these outlets place their demand by raising an invoice one day in advance. The demand is also calculated using the Calendar Scheme, in this depending on the pre-calculated seasonal demands the outlets place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are equipped with HAM radios. Distribution Channels: a) Token Distribution: Also, termed as Lohe ki bhains (metal buffalo), is an automated milk vending machine.

b) COW: Container on Wheels or COW is a manual milk distribution program in

which cycle-rickshaws are employed for milk distribution.

c) Retailers: The packaged milk is distributed via the retailer network throughout the

city.

Processing
At mother dairy, the processing of milk is done by process automation whereby state of the art microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/reliability and safety. There are four ways of milk processing Firstly, Clarification, in which milk is spun at very high speed, removing all dust particles that are invisible to the naked eye.

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Secondly, Standardisation which help to milk maintain uniformity by raising or lowering its fat and SNF (solid not fat) percentage to a desired levels, so as to deliver milk to consumers as per prescribed PFA norms. Thirdly, it is Homogenization which improves palatability of milk and Finally, Pasteurization, which kills all pathogenic bacteria present in the milk and thus making it safe for consumption.

Suggestions and Recommendations

The organisation should have a specific distribution model which should be followed necessarily by each distributor as at this level not everything is organised and each distributor follows a different model to distribute milk due to which in some areas potential sale doesnt happens. To keep track of the supply timings and to sustain the quality of milk till it reaches the retailers, company should have a policy for each distributor to keep vehicles which can maintain the temperature of the milk as maximum distributors are currently doing the distribution with the help of auto-rickshaws which exposes milk to the hot air and sunlight. As there are many regions in the area which consists of low income group, so the organisation should have a policy to provide them Dry ice Boxes which can act as a refrigerator. These should be used in these areas as they are cheap and convenient to use. There should be an arrangement made available for the distributors so that they can cater to sudden demand for the milk so that not even a single chance of selling is missed. The organisation is way ahead in coming out with schemes for the distributors and retailers but the organisation should also start coming with schemes for the customers as it would be a real boost to the sales of Mother Dairy milk and also it will help MD get back its lost customers.

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References:
Brochure Industry Visit www.motherdairy.com http://www.nddb.org/institutions/mdfnv.html

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