CHAPTER 1

Introduction To
The
Organization

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INTRODUCTION TO VERKA
THE PUNJAB STATE COOPERATIVE MILK PRODUCERS
FEDRATION LIMITED; The Punjab State Co-operative Milk Producers
Federation Limited (MILKFED) was established the in 1973 by Punjab Diary
Development cooperation under the Punjab Sate Co-operative Act, 1967 to
safeguard commercial interest of milk producers farmers to save them from
exploitation of middleman, with their participation in its management and to
provide quality milk and milk products to consumers at competitive rates.
First, to carry activities for promoting production, procurement and
processing of milk for the economic development of milk producers by
providing remunerative milk market to them at their door step. Second, provide
quality milk and milk products to consumers at reasonable rates.
Although the federation was registered much earlier, but it came to real
self in the year 1983 when all the milk plants Punjab Dairy Development
corporation Limited were handed over to cooperative sector and the entire State
was covered under operation Food programme to give farmers to a better deal
and our valued customers better products. Today, when we look back, Verka
has fulfilled the promise to great extent. The setup of the organization is a three
tier system, Milk Producers Cooperative Societies at the village level, Milk
Union at District level and Milk Federation as an apex body at a State level.
Milk production is a very important part of agricultural economy in the
State of Punjab. Punjab is one of smallest state in Indian Union with a total area
of 50,362 Sq. km. Dairy Farming is an old subsidiary profession in the rural
area of Punjab. Punjab is the second largest milk producing state in India,
producing 10 % of countrys milk.
Some facts about Verka:1. First Milk Plant of the State was setup at Verka near Amritsar.
2. The brand name of Milk and Milk Products was adopted as Verka.
3. The Foundation stone of Milk Plant Ludhiana was laid by Hon. S. Parkash
Singh Badal the CM of Punjab in 1970.
4. Commissioning of the Plant was done by Dairy Development Corporation in

1974.

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HISTORY
The Punjab State Verka Milk Producers Federation limited popularly
known as MILKFED Punjab came into existence in 1973 with a twin
objective:
To providing remunerative milk market to the Milk Producers in the
State by value addition and marketing of produce on one hand and
To provide technical inputs to the milk producers for enhancement
of milk production on the other hand.
Although the federation was registered much earlier, but it came to real
self in the year 1983 when all the milk plants of the erstwhile Punjab Dairy
Development Corporation Limited were handed over to Cooperative sector and
the entire State was covered under Operation Flood to give the farmers a better
deal and our valued customers better products. Today, when we look back, we
think we have fulfilled the promise to some extent. The setup of the
organization is a three-tier system, Milk Producers Cooperative Societies at the
village level, Milk Unions at District level and Federation as an Apex Body
at State level. MILKFED Punjab has continuously advanced towards its
coveted objectives well defined in its bylaws.

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Name

and

location

of

group

companies

&

products

manufacture/offered by MARKFED:Milkfed has a strong value addition base addition base though its 12
District cooperative milk producers unions and 40 chilling centers capacity of
about 15 Lac liters per day, all of whom have attained self sufficiency or are on
the thresh-old of attaining it.
1. Gurdaspur
2. Amritsar
3. Hoshiarpur
4. Jalandhar
5. Ropar
6. Ludhiana
7. Bathinda
8. Sangrur
8. Patiala
9. Firozpur
10. Faridkot
11. Bassi Pathana
12. Mohali

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MISSION, OBJECTIVE, QUALITY POLICY AND

CORE VALUES

Mission:To become the market leader in market of milk and milk

products.
Objective:Direct approach to consumer and producer and to avoid
middleman. (By the farmers, of the farmers and for the farmers
organization.)
Quality Policy:On the basis of quality with efficient administration, MILKFED has not
only established new mile stone of providing services to Dairy farmers but
scaled new heights in delighting esteemed customers also. This has resulted
into tremendous achievements in all fields.
Core Values:

Selling the highest quality natural and organic products available

Satisfying and delighting our customers

Supporting team member happiness and excellence

Creating wealth through profits & growth

Caring about our communities & our environment

Creating ongoing win-win partnerships with our suppliers

Promoting the health of our stakeholders through healthy eating

education.

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PRODUCTION RESULTS OF PREVIOUS YEARS

NAME OF

THE 2006-07(in

2007-08(in

2008-09(in M.T)

PRODUCT

M.T)

M.T)

Ghee

356.729

412.933

505.90

Butter

140.550

291.193

83.69

WMP

382.070

195.205

58.05

SMP

245.350

402.175

583.97

Cheese

92.290

85.463

110.42

Curd

693.620

727.845

807.43

Kaju Pinni

559.00

1329.0

1746.00

Liquid Lassi

10999195

11270977

12496497

Lassi

17.189

2136.0

138333.0

Kheer

1262.0

2770.0

5814.0

52.83(%)

58.77(%)

Total

Capacity 50.38(%)

Utilized

TURNOVER:-

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The annual turnover of Milkfed which was Rs.585 crores in the year 2003-04
has hit the level of Rs.725 crores in the year 2006-07.

EQUITY PARTICIPATION:The paid-up equity of Milkfed as on 31.3.2007 was to the tune of Rs.47.15
crores which comprises of Rs.29.02 crores from the cooperative members and
balance Rs.18.13 crores from State Government.

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MILKFED GROWTH AT A GLANCE

PARTICULARS

UNIT

02-03

03-04

04-05

05-06

06-07

CUMMU.NOS.

6643

6445

6104

6101

5989

3.79

3.76

3.56

3.63

3.60

AVG. DAILY MILK PROC LKG SPD

10.01

7.45

7.81

7.82

7.78

PEAK MILK PROC

LKG SPD

15.01

10.04

11.64

11.37

11.54

A.I. CLUSTER SOCS.

COOMU.NOS.

305

323

341

388

433

M.Ts.

517.40

444.10

400.30

430.00

500.00

M.Ts.

71743

73724

66970

66750

73577

LLPD

4.68

4.97

5.27

5.67

5.81

SALE OF SFM

LAC PKTS/BTLS

29.61

30.32

35.85

42.49

41.92

SALE OF LASSI

LAC PACKETS

10.10

10.54

12.20

16.89

19.16

SALE OF ICE-CREAM

LAC LITRES

7.63

9.17

10.23

12.18

15.61

EXPORTS

RS.IN LACS

953.52

698.17

1142.28

713.67

11.50

TURNOVER

RS.IN CRORES

670.00

585.00

653.00

682.00

725.00

FUNCTIONAL
SOCIETIES
MEMBERSHIP

FODDER SEED
SUPPLIED
CATTLE FEED SOLD
AVG..DAILY CITY
SUPPLY

CUMMU.NOS
IN LACS

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MARKETING OF MILKFED:Milkfed is serving nation wide consumers through its net work of
Regional offices and strong Distribution channels. Milkfed markets a wide
Variety of Products which include liquid milk, skimmed milk powder,
whole milk powder, infant food, ghee, butter, cheese, Lassi, SFM, Ice
Cream, Malted food Verka Vigour etc. etc. The annual turn over of
Milkfed has crossed Rs 668 crores. Verka is a brand leader in milk powders
particularly in northern eastern sectors and SMP marketed by Milkfed
commands a premium price over powders manufactured by competitors who
include multi-national as well as private trade and other Cooperative
Federations

EXPORT OF MILK PRODUCTS:With competition in the national market zooming up efforts to

export products have been made. Milkfed has established its ghee market in
Middle East Market. Verka ghee reaches all the emirates and is available
almost in all super markets. The penetration is so deep that Verka ghee is
available in far off labor camps. In addition to ghee, SMP was also exported
to Asian Countries like Philippines, Bangla Desh and Sri-Lanka. Verka Malt
Plus (Malted Milk food) has also been exported to Bangla Desh.
QUALITY ASSURANCE PROGRAMME:Quality Assurance Programme (QAP) which is a part and parcel of
Dairy Plant Improvement Programme (DPIP) was taken up in Ludhiana
Milk Union with the Technical guidance from NDDB. The main objective
of the programme is to improve efficiency of Plants coupled with loss
management to bring down the cost of production, improve the quality
of milk and milk products manufactured to ameliorate the general
hygienic and house keeping standards and above all to enhance the
profitability and financial viability of the Milk Plants to enable milk
producers to get better price for their produce.

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DETAILS OF OPERATIONS
(Procurement, Reception and processing)
Inauguration of plant by Punjab Minister Giani Jail Singh dated 7 May, 1973
and the plant started in 1975.

Village Producer

Societies

Chilling Milk Centre

Milk Plant Hoshiarpur

Reception Dock

Quality Control

Production Department

Processing

Finished Products
SOCIETIES:The milk plant, procure milk through co-operative societies. At
the present the plant has the 751 societies. Firstly milk is collected by these
societies and then sent to the milk plant for two times, morning and
evening. The milk producers receive rate of milk from milk plant on the
basis of fat.
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CHILLING MILK:There are three milk-chilling centers at Dasuya, Padrana and

Balachour. Firstly milk is received at the chilling center and after chilling
the milk.
MILK PLANT:After chilling the milk, it is sent to the milk plant, the purpose to
setup the center are that, the societies are far away from the milk plant
and milk is perishable in nature so to avoid the wastage of milk, the
chilling center were setup. Firstly milk is received in dock through
tempo in higher basis of routes. There are 3 seasons of milk - fluid,
average and lean. The lean period is during April and July and this
period supply of milk received in less quantity. The average is During
August to November and in this period the supply of milk received is
average. The flush is in winter and the milk is highly produced.

RECEPTION OF MILK:Reception of milk is done at the dock. Dock is like a station. The
milk plant has two Docks, firstly milk is reached in the huge quantity, after
this process milk is sent to the laboratory to find out fat and S.N.F.
contents, then milk cans are washed by the machines and again these cans
are kept in the carriers after this process tempo sheets are prepared. The
numbers of milk cans of buffalo and cows milk are recorded on these sheets
are sent to the societies for the information of quantity of milk.
PROCESSING:All the received is passed on to the tank lying under the weighing
bowl. Then the milk is immediately chilled and pasteurized. Pasteurization
is a process which was found by Lou Pasteur.

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MARKET SERVED DOMESTIC/FOREIGN:The success of a concern lies not only in production, but also mainly in
successful marketing.
Marketing is the process getting the right goods to the right
consumers at the right place at the right price.
In Verka Milk Plant four types of tetra packs and other products are
marked under the brand name VERKA, Milk plant is solely responsible for
the marketing of fluid milk products are marked by the Punjab state cooperative milk producers union ltd.

Return of tetra packs:Because the expiry time of tetra pack is 6 months, good
packing and fresh supply, there is no replacement of the tetra packs.

Exports
Milk union is famous all over the country and outside the country
for its quality of milk and milk products. It holds international quality
certificates ISO 9002 and IS-15000 (HACCP). Due to these certificates its
products are easily acceptable in the international market. It export Ghee to
Dubai but no any tetra pack is export.

Products Manufactured and marketed by Milk Union:Milk plant, has variety of products which are available in different
packing. Raw material for all these products is milk which procured from
milk producers.
1

Sterilized Fluid Milk

a) Standardized milk (Fat Contents 4.5%)
b) Double Tend Milk (Fat Contents 1.5%)
c) Full Cream Milk (Fat Contents 5.5%)

Ghee

Butter
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Skimmed Milk Powder(SMP)

Paneer

Milk Cake
Besides these products milk plants sells various products

procured from plants. These products are as under:

1

Flavored Milk

Flavored Lassi

Mango Rassila

Yoghurt Fruit Drink

Kaju Pinni

Ice Cream

Aims Of Milk Union

Every organization is formed for achieving some objectives.
Setting of objectives and aims serves as guidelines for excellent or smooth
working of the concern. The Verka milk plant, touted to fulfil the following
aims.
1.

To uplift social and economic states of the milk producers.

2.

To develop dairy as an industry allied to agriculture.

3.

To procure milk and execute marketing efforts so that milk

producers get good prices of their milk.

4.

To provide better quality cattle feed at reasonable prices.

5.

To increase the bargaining power of milk producers at their

doorsteps.

6.

To provide veterinary aids to animals of milk producers at their

doorsteps.

7.

To create employment opportunities for rural youth by milk

production activities.
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Study of functioning of all departments:Milk Procurement Section

Milk procurement business is being looked after mainly by milk
union, Milk is collected by milk producer co-operative societies ate the
village level and purchased by Milk Union, which further supplies that milk
to the Milk Plant, after charging commission from milk Plant at rates
specified by Milk Union.
The plant was registered in the year 1972 with primary
membership of 45 milk producer co-operative society. At present it has
767 co-operative societies.

Staff Structure of procurement section:

Manager, milk Procurement

Dy.Manager (Proc.)

Manager (Milk Chilling Center)

M.P.A.

D.H.C.C.

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Production Department:This department his headed by production manager and

technical staff and officers and operation. Manager is responsible for
production planning, receiving good quality of milk, its processing and
production of milk products.
His responsible for achieving production target with minimum
wastage. He also guides workers for better performance. The production
is an important activity because other department purchasing extra
revolve around it. Different milk products are produced as per
availability of milk and as per demand of market.
First of all the requirement of milk demand is fulfilled and then
remaining milk is used for producing various products such as Ghee,
butter, cheese etc,.

Staff Structure of production section:

Manager of Production

Dy. Manager, Production

Sr. Plant Operator

Jr. Plant Operator

D.H.C.
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Purchase Department:This department his headed by purchase officers who is assisted by

supporting staff in maintaining regular supply of store items. This section
ensures timely purchase of required store items at very reasonable cost.

Functions of purchase department:a. To received purchase requisition from stores.

b. To buy goods or materials wisely at reasonable prices.
c. To invite quotation from number suppliers and preparing
comparative statement to choose a right supplier.

Engineering Section:This section his headed by engineering manager who is assisted by

technical officers. He is responsible for identifies all machine needing
maintenance to avoid any breakdown during the production. He is also
supposed to introduce to new machinery by which the cost of production can
be decreased it also insured are transport vehicles of milk plant.
Staff Structure of engineering section:
Manager, Engineering

Dy. Manager, Engineering

Foreman

Foreman

Foreman

Electrical

Refrigeration

Boiler

Foreman
Transportation

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Management Information System:

MIS is a system where information about the activities of plant is
supplied to management. Accurate and precise information to support the
operation management analysis and decision making function in an
organization. Here data are collected from different section in an
organization, which can be useful to the management for decision making.

Accounts Department:A manager account is the head of this department. He is responsible for
the overall management of accounts. This section is responsible for timely
payment to all the employees of milk plant and also to the parties dealing with
it. It records all the transactions in the proper books to provide necessary
information to the authorities whenever required.

Personnel and HRD department:Production Manager & HRD Department who is assisted by
supporting staff to carry out function of this section head this section. This
section ensures compliance of labor laws, maintenance of proper records and
completion of administrative formalities for timely payments of dues to
employees. It is also responsible for maintaining cordial relationship
between workers and management.

Marketing Department:The success of concern lies not only is production but mainly in
successful marketing. Production of goods and services has no meanings
unless goods and services are exchanged profitably for money or moneys
worth. This involves the movement of goods from the manufacturers to
ultimate consumers. In bringing he producer and consumer together, certain
activities are performed which is the concern of marketing.

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Marketing is a process of getting the right goods to right consumers

at the right place, at right time and prices.
Deputy Manager who is further assisted by supporting staff heads Marketing
section. He regulates the production of milk and milk product in different
ways to ensure maximum possible returns from sales.

Quality Control Department:

Quality control manager heads this department and the technical staff
assists the manager by conducting all type of tests on raw materials and
finished products with the help of sophisticated equipment and machines
purchased.
Quality control laboratory helps in maintaining high quality of milk
and milk product assist ensures quality by testing the raw material as well as
finished products.
Staff Structure of Quality Control section.
Manager, Quality Control
Dy. Manager, Quality Control

Asstt.Manager, Q.C.

Chemist
Laboratory Assistant
Helper

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Store Department:This department stores all the essential equipment and material and
stationary required in all the departments. It also keeps the records of goods
purchase and goods in stock as well as the goods the used by the particular
department. The main purpose of this section is to keep the full record of packed
material. The product is stored at clean and Cool places.

Security Department:One senior security employee, who is assisted by a team of welltrained personnel manager the security department. This department keeps
proper watch on men, money and materials while entering in and going out
of the plant.

Special Technique Adopted

Management information system:MIS is the system in where information about the activities of
the plant supplied to the management. Accurate and precise information to
support the operation management, analysis and decision making function
in an organization. Here data are collected from the different related
sections which can be the management for the decision making.
The following information are maintained and supplied to the
management when required:

Progress of dairy plant (monthly/Yearly).

Progress report of input activities (monthly/Yearly).

Progress report of procurement activities (monthly/Yearly).

Reports on activity of chilling centres (monthly).

Report on product wise costing (monthly).

Report on unit costing (monthly).

Report on product wise costing (monthly).

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Stock statement (monthly).

Sales and return (monthly).

Transportation cost of milk collected (route wise).

Section wise salary report (monthly).

Running hours of machine (monthly).

Financial position (yearly).

Dairy co-operative societies progress (Monthly)

In any decision making matter all these information is of great help

tp the management. Thereby in an organized dairy like Verka Milk Plant,

Hoshiarpur, it is a very important section to keep the overall position/status
of the plant.

Production of milk products:Production is a more important activity of an organization. In occupies

an important and significant place because other functional areas of
management viz.financing, marketing, purchasing and personal revolve
around it.
Production is a process by which raw materials are converted into
finished products with the help of energy, capital, manpower, and
machinery. Production policy aims at maximum output with minimum input.
The production departments play a very important role in formulation of the
production policies.
Production planning is done by the head office and send to the
production manager according to this planning production manager arrange
to produce the products.
Production planning of milk products is done in keeping in the view the
procurement of the milk plant and also tentative demand in the city. After
the supply of the pasteurized milk, the remaining milk is used for producing
various products. Different milk products are produced as per availabilities
of milk and as per demand of sales and keeping in view the production plan
given by head office. Every district has its own plant.
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Verka products range:1

Ghee

Butter

Skimmed milk powder

Flavoured milk

Flavoured Lassi

Mango Rassila

Paneer

Milk Cake

Dahi

10 Ice Cream
11 Kaju Pinni

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VARIOUS PRODUCTS PRODUCED BY VERKA MILK

PLANT

GHEE (AGMARK)

BUTTER
TABLE
80.00

82.00

B.R.reading (40 degree C.) 40 - 43

Acidity %L.A. (Max.) 00.15

00.06

RM Value (Min.)

Curd % (Max)

01.50

Boudine Test

P.Value

Neg.
28.0

Fat% (Min.)

WHITE

1.0 - 2.0 Salt % (Max)

Coliform/ml. (Max.)

FFA % Oleic Acid( Max) 0.30

Y&M (Max)/g

01.00
2.8

20

20

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GENERAL COMPOSITION FOR MILK

Percentage Cow Milk Buffalo Milk

STANDARD MILK

Milk Fat % (Min)

4.5

Milk SNF % (Min)

8.5

Fat

4.6

6.6

PH (Max)

6.8

Proteins

3.4

3.9

MBRT (Min)

5.00 Hrs.

Lactose

4.9

5.2

Ash

0.7

0.8

86.6

84.2

Water

Phosphates Test

Ng.

Bacterial Count/ml.(Max) 30,000

Coliform/0.1 ml.

Nil

UHT MILK
FAT

4.6%

SNF

8.6%

pH

6.6

Acidity L.A.

0.130% LA

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SWEETENED FLAVOURED MILK RASEEELA

Milk Fat % (Min.)
Total Milk Solids % (Min.)

1.65
17.0

Sugar % (Max.)

6.0

Turbidity Test

Neg.

Creaming Index

20

Bacterial Spores per ml. (Max.) 5

Cheese Whey %

40

Sugar %

12-12.5

Mango Pulp%

10.00

Brix

15

Acidity(%Citric Acid) 0.28

pH

3.9-4.1

LASSI
Milk Fat %
Total Solids % (By wt.)
Sugar %

3.0 to 3.4
20 - 23
12.00

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ICE CREAM

Weight (g/lts.) Min.

Total Solids (Min.) (By
wt.)
Milk Fat % (Minimum)
Acidity, L.A. % (Max) By
Wt.

KULFI AND F/N CHOCOLATE

560580
38.5
13
0.25

Sucrose % Max. (By Wt.) 14.50

Stab. Emul. % Max.

Kulfi

0.50

Total Solid (%Min. By

wt.)

F/N
Choc

42.00 38.50

Milk Fat %(%Min. By wt.) 13.00 13.00

Protein (%Min. By wt.)

3.50

3.50

Acidity % Max (By wt.)

0.30

0.30

Sucrose % Min. (By wt.)

Total

14.00 16.50

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CHAPTER 2
INTRODUCTION
TO
THE TOPIC

26 | P a g e