SUMMER INTERNSHIP REPORT

A project report in partial fulfilment of the requirement for the award of the
degree of Master of Business Administration of Madurai Kamaraj University
Submitted by
K.B.LAKSHMISRI (2015MBA15)
V.P.SHANTHI MAI (2015MBA40)

DEPARTMENT OF BUSINESS ADMINISTRATION

FATIMA COLLEGE (Autonomous)
(COLLEGE WITH POTENTIAL FOR EXCELLENCE)
(RE-ACCREDITED WITH A GRADE BY NAAC)
MARY LAND, MADURAI-625018
MARCH 2016.

ACKNOWLEGEMENT
First and foremost we would like to express our gratitude to the lord
almighty for showering his blessings for completing our project successfully.
The completion of task cannot be successful without mentioning the people
who made it possible. We consider our privilege to express our words of
gratitude and thanks to all those who guided us and inspired us in the
completion of the project.
It is indeed our great privilege to extend our thanks to our principal REV.
DR. SR. K. FATIMA MARY and all the vice principals for granting us
permission to carry on this project.
We would like to extend our heartfelt thanks to our beloved Director Dr.
Mrs. P. UMA., and our faculty Mrs. N. ASHA, DR. Mrs. M. Nagarenitha.
For her help that she rendered to us in every step of our project proceedings
and for her constructive suggestions and guidance in the completion of our
project.
Also not forgetting our guide Mrs.GAYATHRI for giving us the opportunity
to do our project in his
We would not fail to thank our dear parents, friends, for all their support and
the respondent for responding to our questionnaires.

S.NO

CONTENTS

1.

Industry profile

2.

Company profile

3.

Procurement and input

4.

Purchase department

5.

Production department

6.

Human resource and industrial relations

7.

Finance department

8.

Stores department

9.

Marketing department

INDUSTRY
PROFILE

INDUSTRY PROFILE
Milk has been an integral part of Indian food for centuries. 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 vendors. Also of the total produce more than
50% is procured 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, makhan 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 current 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 crores. Quality of milk sold
by unorganized sector however is inconsistent and so is the price across the
season in 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,
maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it
adds up to a sizable volume - millions of litres per day. In the major cities lies
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.

COMPANY
PROFILE

COMPANY PROFILE
AAVIN Madurai OR Madurai Dairy
Madurai popularly known as the Temple city has a population of 15.0
lakhs. Madurai Milk Project was established by the Government of Tamilnadu
in the year 1967 with the financial assistance from UNICEF. Madurai Dairy is
equipped with plant and machinery provided by the UNICEF and
NEWZEALAND FREEDOM FROM HUNGER CAMPAIGN COMMITTEE,
NEWZEALAND. The chilling centres at Virudhunagar and Srivilliputhur were
also constructed in the year 1967 to feed milk to Madurai in order to process
50,000 ltrs of milk per day. From 01.01.1974 Tamilnadu Dairy Development
Corporation Limited has procured milk from Madurai, Theni, Dindigul,
Virudhunagar and part of Coimbatore District Dharapuram area Milk cooperatives.
The Main objectives of the union was to uplift the Socio-Economic
status of rural milk producers by ensuring reasonable price for their products
and satisfy the demands of the consuming public in Madurai at a reasonable
price. The Union procured milk from its own societies and also from other Milk
Unions as detailed below since inception.
i)
ii)
iii)
iv)

Composite Madurai District

Thirunelveli
Composite Ramnad District
Kanyakumari District

Formation of Madurai District Co-operative Milk Producers Union Ltd.,

was from 01.01.1983. By then milk procurement is restricted in Theni and
Madurai Districts only. MMPO registration Certificate No. 127/R-MMPO/94
Dt. 09-02-94 for the capacity of 2.0 Lakh LPD. Renewed for a period of 5 years
from 09-02-99 to 08-02-2004. Issued by the Govt. of India, Ministry of
Agriculture, (Department of Animal Husbandry and Dairying) Krishi Bhavan,
New Delhi 110001, vide reference No. 26-185/92,Dt.11-07-2000.
Outlay:
Operation Flood II Rs.126 lakhs. Operation Flood III Rs. 79 lakhs.
Capacity
Liquid Milk Processing 1.5 Lakhs Litrs Per Day
Powder Production 10.0 M.T Per Day
Butter Production 10.0 M.T per day
Ghee Production 0.5 M.T Per day
TRAINING CENTRE:
The Union has established a Training Centre during 1985with an aim to
train personnel in the primary co-operative milk societies in the District and the
near by Districts. The Management Committee members and producer members
are trained in management of primary societies in a better manner.
Aavin (Tamil: ) is the trademark of Tamil Nadu Co-operative Milk
Producers' Federation Limited, a Tamil Nadu-based milk producer's union.
Aavin procures milk, processes it and sells milk and milk products to
consumers.
Meaning of name
'Aa' or '' in Tamil means 'cow' and '' means 'milk'. 'Aavin paal' ('
') translates to 'cow's milk'(' ').
PRODUCTS SPECIALITY:

No chemical added
No coloring
No flavours
No adulteration
Real animal fat

HISTORY
The Dairy Development Department was established in Tamil Nadu in the
year 1958 to oversee and regulate milk production and commercial distribution
in the state. The Dairy Development Department took over control of the milk
cooperatives. It was replaced by the Tamil Nadu Cooperative Milk Producers
Federation Limited in the year 1981.
On February 1, 1981, the commercial activities of the cooperative were
handed over to Tamil Nadu Co-operative Milk Producers' Federation Limited
which sold milk and milk products under the trademark "aavin". Tamil Nadu is
one of the leading states in India in milk production with about 14.5 million
liters per day.
MILK PRODUCTS OF AAVIN
Aavin produces 4 varieties of milk.
Cow milk (3.5% fat)
Standardized Milk (4.5% fat)
Aavin gold (5% fat)
Full Cream Milk (6% fat)

It is also engaged in the manufacture of milk products such as milk khoa,

mysorepak, gulab jamun, khalakand, butter milk, lassi, curd yoghurt and icecreams.
CONTROVERSIES
In the Year 2012 there were widespread complaints about the milk
being adulterated. Especially when the milk was being transported from
cooperative societies to diaries. There was no serious action taken. However, in

the year 2014 a major adulteration racket was busted by the police in the district
of Villupuram. The modus operandi of the gang was to transfer 45 cans of milk
from the lorry that carries pure milk from Chennai Aavin dairy to
Tiruvannamalai, into cans kept on mini lorries. An equal quantity of water was
filled to ensure that their tracks are covered. Aavin later confirmed that it
encountered a loss of INR 10 crores due to this racket.
OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT:
1) Assure a remunerative price for the milk produced by the member of the
milk producers co-operative societies through a stable, steady and well
organized market support.
2) Distribution of quality milk and milk products to the consumers has been
made by the way of establishing new chilling centers, pasteurization
plants and adoption of modern processing system at reasonable price.
3) To uplift socio-economic states of rural milk producers by offering
reasonable price and extending marketing facilities for milk produced in
rural areas.
4) Provision of free veterinary health cover to all animals owned by the
members of milk co-operatives, implementation of artificial insemination
program, supply of balanced cattle feed and inculcation of farmers with
the modern animal husbandry methods and practice.
FUNCTIONS OF THE DAIRY DEVELOPMENT PROGRAM:
The main function of the dairy development department includes
organization of societies, registration of societies, supervision and control of
primary milk co-operatives, district co-operative milk producers unions and
Tamilnadu co-operative milk producers federation.
The dairy development department exercises statutatory functions
inquiry, inspection, surcharge and supersession, appointment of special officers,
liquidation and winding up of dormant societies, etc..
PRIMARY DAIRY CO-OPERATIVES MILK SOCIETIES:
A minimum of the 25 or more individuals competent to contract under
section 11 of the India contract act of 1872, owning milch animals can form a
primary dairy co-operative society, with one or more villages as its area of
operation. Such persons have to approach the circle deputy registrars office
(dairying) office functioning at the district for further guidance. The members of
primary co-operative milk society have to supply milk to the society which will
procure milk on quality basis and they will receive milk cost once in 10 days or
15 days from the society. Milch animals are provided with free veterinary health

cover, artificial insemination and the supply of balanced cattle feed. Induction
of farmers on modern animal husbandry practices are aimed at by upgrading the
milch animals and thereby improving their productivity in the long run for the
benefit of the members.
FUNCTIONS OF THE DISTRICT CO-OPERATIVE MILK
PRODUCERS UNIONS:
There are 17 district co-operative milk producers unions functioning in
the state of Tamilnadu covering 30 districts. There are 15 dairies in district cooperative milk producers unions with an installed processing capacity of 19.42
llpd. There are 36 chilling centers (functional) in district co-operative milk
producers unions with installed chilling capacities of 13.55 llpd.
1) Establishment of chilling centers
2) Formation of new milk routes to collect milk produced by the members
of the societies.
3) Collection of milk from societies, process and pack in modern dairy
plants by maintaining quality standards.
4) Supply of quality milk to Chennai metro under hygienic conditions
5) Fixation of procurement and selling price of milk
6) Increase of liquid milk sales by introducing innovative sales promotional
activities
7) Supply of inputs to the members of the societies.
8) Render veterinary health service and emergency service to the cattle of
members of primaries, to impart training on first aid and on artificial
insemination to the staff of the member societies
9) Extending artificial insemination services to the cattle owned by the
members of the milk co-operative societies
10)
Providing milk cans
11)
Salem, erode, Madurai and dharmapuri unions are the feeder
balancing dairies. Surplus milk in the district unions, after meeting their
local sales is diverted to the nearest feeder balancing dairies for
conversion into milk products such as skim milk powder, butter and ghee.

PROCUREMENT
AND INPUT

PROCUREMENT AND INPUT:

1) Year of Inception: 1967
2) The Area covered by the Union:
Madurai, Theni Districts
3) The Major Departments Functioning:
i) Madurai Milk Project Sathamangalam, Madurai
ii) Bulk milk coolers: 12 at Society level.
iii) Milk Chilling Centre, Theni
Milk Procurement and Input Information:
1) No of Milk Collection Routes

: 32

2) No of Milk Producers Societies (Functional) : 840

3) Average Milk Procurement per day
4) Total no of milk producers

: 2.43 lakhs lits

: 78843

5) No of societies having artificial insemination facility: 708

6) No of mobile veterinary routes

: 14

7) No of Emergency veterinary units

:3

8) Cattle feed supply to Societies/ month : 400.00 M.T

9) Milk Procurement Teams Functioning

:7

a) Vadipatty,b) Melur,c) Usilampatti,d) Tirumangalam

e) Chellampatti,f) Theni 1,g) Theni 2
Schemes being implemented by the Union
a) I.C.D.P: Funds received Rs .226.62 lakhs for Machineries

b) N.M.F.P Rs.265.00 lakhs (subsidy) - for Milk cold room (2.00 Lakhs lit
milk capacity)

DAIRY PLANT INFORMATION

1) Installed Milk Handling Capacity: 3.0 lakh lits per day
2) Milk Powder Plant Capacity

: 10 M.T per day

3) Butter production Capacity

: 5 M.T per day

4) Ghee Production Capacity

: 5 M.T per day

5) Products Manufactured: Milk, Butter, Ghee, Skim milk Powder, Sterilized

Flavored Milk, Khoa, Mysorepa, Curd.
Aavin procures its input from society and BMC (Bulk Milk Chiller).
When they procure milk from the society the milk will be tested regarding their
fat content and its SNF (Solid Non-Fat). The quality of the milk will be judged
based on these two contents present in the milk. The quality of the milk will be
tested in the laboratory to avoid adulteration. The fat content must not be less
than 3.8. If it is below 3.8, the milk will be rejected.
BULK MILK CHILLER:
It is also known as mini chiller. Its capacity is 5000 liters. The main
function of BMC is to collect and store milk from the society. It acts as an
intermediary as the milk is a perishable commodity. There are 14 BMCs
located in Madurai and 2 in theni. Where 11 BMC has 5000 capacity litres and 3
BMC has 2000 capacity litres. The travelling cost of BMC ranging from 30
paise per lit of milk which is a minimum cost to 50 paise per liter of milk which
is a maximum cost. The BMC is located within the distance of 10 kms from the
society. The travelling cost of BMC is based upon the distance.

Upto 2 kms 30 paise

2.1 km to 4 kms 35 paise
4.1 kms to 6 kms 40 paise
6.1 kms to 8 kms 45 paise
8.1kms and above 50 paise

There are 5 procurement teams in Madurai. They are in vadipatti, mellur,

thirumangalam, chellampatti, usulampatti and another one in theni. Each team
has leaders, separate doctors or managers, extension officers.

RATIONAL BALANCING PROGRAM SCHEME (RBP):

It is a scheme introduced by the Government for the betterment of people
and the cattle. This scheme implies feeding of animal in a better way in order to
provide good quality of milk. Veterinary doctors and mobile doctors will visit
each society for the betterment of cattles health. These doctors suggests healthy
cattle feed and mineral mixer for the improvement of the quality of the milk.
The scheme functions with 900 people who are directly involved and 1500
people are indirectly involved. Nutrition charts and laptops were provided to the
farmers who are registered with the society in order to check the height and
weight of the cattle and to provide healthy feeding structure for the cattle
A kind of gas (methane) is generated by cow when it exhales. It is a kind
of problem which pollutes the surroundings. So in order to overcome this RBP
scheme is introduced by the Government. This scheme helps to provide healthy
feeding for the cattles.

PURCHASE
SECTION

PURCHASE SECTION:
Purchase section deals with the purchase of office use such as
stationeries like files, paper, pins, pens, writing pads, etc. and machinery spare
parts, tools and even equipments. The function of the purchase department
begins when there is a demand from any department like need for spare parts or
stationery items, etc. after which they go with 3 procedures for the purchase of
raw materials. The executive of the purchase section have to get permission
from the General Manager if the expenses lie within Rs.1 lakh. Otherwise they
have to get permission from the board chairman committee if the expenses lie
within Rs.5 lakh through quotation. On the other hand, when the expenditure is
too heavy i.e. above Rs.5 lakhs, they go for tender. It has 2 cover systems. They
are technical bit (specification bit of machines) and commercial bit (price alone
will be quoted). The committee will scrutinize the cost estimates of the
voluntary parties and then they select the supplier who quotes the reasonable
price. In case of purchasing expensive machinery, 80% of the money will be
paid when they receive the machinery. After its installation and proper working
of the machinery they will pay remaining 20%.
QUOTATION COMMITTEE:Deputy General Manager, Finance manager, Process & Maintenance
manager, Section head.
TENDER COMMITTEE:General Manager, Deputy Registrar Manager, Finance manager, Process
and Maintenance manager, Purchase manager.

PRODUCTION
DEPARTMENT

PRODUCTION DEPARTMENT:
Production is an important function in every organization. In aavin the
production can be maintained by process and maintenance department. Milk is
the main product for Aavin and other milk products also produced by Avian. It
helps to reduce the spoilage of milk and help to increase the profit for the trade
union.
There are four managers in production department. They are manager
(process and maintain), manager (dairying), manager (pre-packing), manager
(packing). In a process & maintain section and pre-packing section, they have
operator for supervising the machineries operation. The production processes
functions as three shifts for a day. The shift timing as follows,
1st shift From 6am to 2pm
2nd shift from 2pm to 10pm
3rd shift from 10pm to 6pm

PRODUCTION PROCESS:

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The manufacturing process starts from milk reception. The procurement

section duty ends with this reception after it is carried out by process and
maintain department. The milk reception has sufficient facilities for parking the
vans and tracks for collection of milk carried in to the factory. In the reception
the milk received by the canisters from village societies and tankers from
BMCs or other unions.
2) Plenture:
In this process the equipment used for finding curdling of milk is called as
plenture. It helps to detecting the curdling and reduces the spoilage of milk. It is
the preliminary test done by the experienced staffs only.
3) Sample for lab test:
After plenturing, sample can be taken for testing the fat percentage and
other testing. The test is done by quality control department.
4) Weighing:
The milk weight calculated in the modern weighing machine. The
weight is calculated in kilo grams and it is converted to liters.
5) Chilling:
The first step in processing of milk is chilling. Chilling of raw milk is to
increase life to the milk and to check the growth of micro organism present in
the milk and arrest further determination in quality to raw milk. The freshly
downed raw milk has been chilled to 4C and temperature until the milk
processed.
6) Stored in silo:
After finishing of chilling process the milk is stored in large size silo which
has a capacity of 66,000 liters. This function helps to balance the fat contents.
The temperature is maintained as 5C and below.
7) Standardization:
The next important step in processing is standardization of milk refuse to
the quality adjustment that is raising or decreasing of fats or solid non-fat
percentage of milk to desired level. The societies have to confirm to the legal
and other requirement prescribed in this regard. This standardization makes
aavin milk as high quality milk and creates demand among the people.

8) Pasteurization:
Demonstrates that healing wine to kill the micro organisms and helps in
preservation. The application of this process gives rise to the term
pasteurization.
9) Homogenization:
It means fat globules in the milk are subdivided into small particles of
uniform size after which the supply is done. The fat cannot be separated from
the homogenized milk.
10)

Regeneration 1:

It is the main function in every milk processing unit. It just process of

milk protecting from spoilage and increasing its expiry time as more than one
day. It usually followed in every home. In this process the milks temperature
increased from 10C to 80C. The regeneration machine has four stages. The
stage wise temperature given as below,
1st stage - 10C
2nd stage - 50C
3rd stage 60C
4th stage - 80C
11) Holding:
After finishing the regeneration 1st process the milk hold in holding tubes.
These are steel tubes designed as zing-sang method for milk getting same heat.
After the holding is end the milk sent to next level.
12)

Regeneration 2:

This is the process just opposite to regeneration -1. In the second

regeneration process milks temperature can decrease from 80C to 10C. It is
the last stage in the processing.

13)

Final storage:

Madurai aavins main dairy have 6 storage silos. After finishing of all the
above processes, the milk is stored in the silos for pre-packing. At the time of
storage the milks temperature maintained as 4C. The silo has the capacity of
6000liters.
14)

Pre-packing section:

It is the final stage in the production of milk. Pre-packing section has

one manager and assistant staff for operating the function. The pre-packing
section depends on both manual and machinery works. In this section milk and
curd are packed. The milk is taken from storage silos through pipes and it is
sent to the pre-packing machine and the milk is packed in poly ethylene
packets. There are 13 milk packing machines and 1 curd packing machine in
the pre-packing section. This machine prints the date of manufacturing and it
has the UV light on the top of its head. This light helps to kill the bacteria in the
packing cover.
The pre-packing function starts from rinsing of grade (tray). The rinsing
function is done by automatic machine with water and sodium hydracids
powder. After rinsing the grade moved from the rinsing machine to packing
machine. The women workers arrange the milk packets in the trays. Each grade
has 12 liters capacity. At last the grades will be sent to the cooling chambers for
storing with minimum C

HUMAN
RESOURCE
SECTION &
INDUSTRIAL
RELATIONS

HUMAN RESOURCE SECTION & INDUSTRIAL RELATIONS:

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASSISTANT GENERAL MANAGER

MANAGER

SUPERINDENTENT

EXECUTIVE

JUNIOR EXECUTIVE

JUNIOR TYPIST

OFFICE ASSISTANT
This section involves the process of maintaining and controlling of the
organisation. It is a supervisory department of Madurai aavin. Totally there are
460 employees involved in aavin where 350 employees are working in
production unit and remaining are office staffs. The disciplinary action is taken
by this department. The various functions includes formulation of developing
human resource plan, policies, recruitment, training, development, promotion,
demotion, and performance appraisal. This department has an Assistant General
Manager, Deputy Managers, General Managers, committees, etc. In this
department there are subdivisions like industrial relations section, establishment
section, etc.

FUNCTIONS OF HR DEPARTMENT:

Recruitment of the new staff

Training and development of the workers
To fix the day to day activities of dairy
To sanction medical leave, earned leave, privilege leave
To look over the welfare services
Allocating salary, increments for daily routine workers
To prepare agenda for the meeting
To take some disciplinary actions in the organisation
To maintain employee register

Recruitment:
There are four types of recruitment. There are as follows

Office recruitment
Direct recruitment
Compassionate recruitment
Employment exchange

Leave:
There are 3 kinds of leave which an employee can avail. They are as follows
Medical leave yearly 9 days
Privilege leave 30 days per year
Casual leave yearly 12 days
Employee should avail leave only after his intimation to their senior staff.
If not disciplinary action will be taken by the senior executive in the industrial
relations department. If the employee avails leave frequently he will be given
memo for explaining his reasons. Even if he supposes to repeat the same,
immediately he will be dismissed from the work.
The employee who saves their leave without availing it is said to be earned
leave. Where an employee can convert these earned leave into cash. There is no
overtime working hours in aavin.
Salary:

Pay fix of salary is different for every worker. Salary is based on

seniority and not based on the performance of the employees. Yearly once
increment will be made. If an employee is present on the national holidays such
as January 1, 26, may 1, august 15, diwali, Christmas, ramzan, pooja holidays
and pongal festival, he will be provided with double wages. Attendance on
national holidays will be maintained separately.
Increment:
There are 3 grades of increment which is provided to an employee (only
for mazdoor and technicians) based on his/her performance. They are
10 years 6% selection grade
20 years 6% special grade
30 years 3% super grade
Bonus:
Bonus will be provided during festival seasons to the employees of aavin.
Diwali bonus Rs.7500, 1 kg ghee for all the staffs, kg milk peda, kg
mysorepak
Pongal bonus excretia Rs.1000, kg ghee, 1 kg milk peda or kg
mysorepak.
Retirement:
Retirement people are also provided with 1 kg skim milk powder and 1
kg milk peda. Age of retirement for every staff is 58 and for office assistant the
age is 60.
Training:
In 1985, the union established training centres with the main objective of
imparting training. They give training to the co-operative societies about the
milk procurement. The management committee members are also trained on
bow to manage their societies. They give lot of training to the employee who is
all in the procurement division.

INDUSTRIAL RELATIONS SECTION:

This section established to create relationship between the employees and

the management. Its main objective is to fulfil the employee wants and needs.
They handle all type of legal adjudication of the union. They clear the conflicts
arise from the inside and outside of the organisation. They conduct awareness
program and free medical camps for the employees benefit. This section has the
right to punish the employee when he/she doing malpractice.
EMPLOYEE WELFARE MEASURES:
Aavin follows many acts for the welfare of the employees according to the
factories act 1945.
Workers compensation:
The workers compensation is given to the workers foe any accident as per
workers compensation act 1923.
Insurance:
Every employee is insured as they are the human assets of any firm.
Production department, plant and machineries, finished products, transport
vehicles, cash and goods in the transit are insured. Rs.3,50,000 will be paid to
the deceased persons family which is known as group insurance. The payment
is made by deducting Rs.15 from monthly salary of each staff from aavin. Every
april 1st an employee must be on duty.
Medical allowance:
To avail benefit from medical allowance he should be deducted with
Rs.125 each month. Rs.1,00,000 can be reimbursed by an employee in case of
major accident.
Canteen:
Meals, tiffin and tea are supplied to the employees at the reasonable rate by
the union canteen.
Other facilities:
Employees who are directly engaged with the production, can avail facilities
like

Yearly once 2 sets of uniforms,

Monthly once bath soap,
Yearly once slipper,
For the cold room employees, provided with shoes and coat,
Yearly once 2 sets of towels.

Employees who are engaged with office work and 2 ever silver tumbler
provided yearly once.

FINANCE SECTION

FINANCE SECTION:
Finance plays a vital role in any business. This department have coordination with all the departments and it is a centralised department. All the
department of aavin is interconnected to the finance department for the
payments, fund allocations. Finance department also deals with any changes
regarding sales and income tax.
During the year 2014-15 aavin earned a profit of Rs.5 crore. During the
year 2015 2016 aavin incurred loss of Rs.1 crore. Milk will be purchased at the
cost of Rs.60 crore per month.
FUNCTIONS OF FINANCE SECTION:
To ascertain the financial position of the company.
To prepare the annual income and expenditure, profit and loss account,
balance sheet to be submitted to the administration section.
To distribute the milk payment list to all the sections.
To maintain the milk and its products sales income account.
The books maintained in this department are cash book, ledger and
balance sheet.
SECTORS OF FINANCE DEPARTMENT:

Milk bill section,

Pay bill section,
Marketing accounts section,
Cash section,
Pre-audit,
Payment section.

Under milk bill section, they record the payments made to the 1000
registered societies (approx.) for the supply of milk. The payments will be made
once in 10 days. So the payment to the societies comes around 3 instalments per
month. The payment is based on the litres of milk the society supplied. Based
on the fat content and SNF, the price of aavin milk is fixed and sold in the
market.
Under pay bill section, payroll of the employees are recorded. Under
marketing accounts section, they record the sales commission that are received

from the agents (depots) who sell aavin milk and milk products. They pay Rs.70
lakh per month to these agents for selling their products.
Aavin supplies milk to institutions like big hotels, government hospitals,
jail, medical colleges, etc. on loan basis. These institutions make payments after
a month through cheque or cash. These payments will be recorded by cash
section.
Under pre-audit section, they record all transactions on code basis. This
section has pre-auditors from private companies for checking accounts. Under
payment section, they record the payments made in advance and other payments
made for the purchase of milk flim, stationary, machineries, packing materials
etc.
For each and every month, profit and loss of the company in ascertained
under final accounts section. They do calculate costing and cost of production
for every month. They also determine tax payment and profit and loss analysis
for every year.
Under co-operative audit, every 3 years staff will be changing. They have
rights to check records, reject expenditure if they seem not to be incurred. There
will be quarterly audit, half yearly audit, and final audit in each and every year.
CASHIER SECTION:
This section receives bulk amount every day. It may be around Rs.5 lakh to
Rs.6 lakh. The payment will be made by the customers. Every day money
transactions will take place in this section and this money will be collected by
the bank. This bank transaction will take place directly and they will record both
electronically and manually. They will maintain a separate account called petty
cash. Rs.2000 will be received from aavin and it is maintained by the cashier.
For the persons who are dealing with the bank related work (office messenger)
they will be provided with Rs.35 for their travelling expense. This section deals
with all other departments in aavin.

STORES
DEPARTMENT

STORES DEPARTMENT:
Stores is used for storing all types of goods such as raw materials, semi
finished goods, finished goods to meet the contingencies in future period and it
impress proper handling of each goods. The stores department stores its goods
in 3 categories. They are
Main store
Engineering store
Stationeries store
@ Main store:
It is important section in the stores department. In this section, the
consumable goods are stored. The consumable goods are packing materials,
chemicals, lab equipments, cotton, etc. These types of goods are used
frequently. These stores adopt FIFO & LIFO method for these kinds of goods.
@ Engineering store:
In this section, the tools and equipments used for engineering works are
stored. They are different kinds of plant and machinery spare parts. This store
adopts weighted average method for these items.
@ Stationery store:
This section stores office equipments, pen, paper, writing pads, accounts
book, files and so on which will be needed for office work.

MARKETING
SECTION

MARKETING SECTION:
Marketing is the brain of organisation. It is a social and managerial process
by which individuals and groups obtain what they need and want by creating,
offering and exchanging products. The simple word is the art of selling products
in the market. It brings new variety of quality goods to customer benefit.
MARKETING DEPARTMENT DETAILS
1) Total Number of Milk Selling Booths
2) Total Number of Parlours

: 932
: 41

3) Total Number of Milk marketing Zones: 6

4) Types of Milk
Type

Pack Size

a) Cow Milk

M.R.P.

500 ml

b) Standardized Milk

Rs.20.00

500 ml

Rs.21.00

c) Aavin Gold milk

200 ml

Rs.09.00

d) Full cream milk

1000ml

Rs.45.00

5) Products
Type
a) Butter

Pack Size

M.R.P

100 g, 200 g, 500 g

Rs.40.00, Rs.76.00, Rs.180.00

b) Ghee
100ml, 200 ml, 500ml
5000 ml Rs.410.00 Rs.2050.00
c) Skim milk Powder

500 g

d)Milk Peda 50 g, 200 g , 500 g

e) Mysorepa

250 g, 500 g

f ) Flavoured Milk 200 ml bottle

Rs.47.00,Rs .90.00 Rs. 210.00, 1000 ml ,

Rs.180.00

Rs.20.00,Rs.78.00,Rs.185.00
Rs.115.00, Rs.220.00
Rs.22.00

7) Average Milk sales per day

:1.57 lakhs lit .

8) Total No of City Milk Distribution Routes: 43

9) Total No of Rural Milk Distribution Routes: 8

DEPARTMENTAL SET UP:

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The Madurai Aavin marketing department divides into 2 divisions. That is

urban and rural.
Urban means of within Madurai and theni city. Rural denotes the outskirts
of the above cities. The urban marketing is controlled by 6 zonal officers. The
zonal officers act as deputy managers of Aavin. The Madurai zonal officers are,

Anna nagar
Aarapalayam
Central
Palanganatham
BB kulam

Madurai Aavin enjoys 65% share among the organised sector in sachet
milk sales. Marketing of milk is carried out through 6 channels.

Milk parlour
Milk depots
Institutions
Retail sellers
Dropping point concessionaries
Self help group

FUNCTIONS OF MARKETING DEPARTMENT:

i)
ii)

iii)
iv)
v)

Supplying the product to Madurai city.

Adding value to the most perishable commodity and providing
consumers with best quality at right place, right time and right
quantity.
Forecasting the demand periodically and planning for the sales.
Arranging vehicles in order to reach the product to the customers at
the right time.
Solving customers grievances.

ZONAL OFFICERS:
Zonal officers collect order from the customer and transport it to the
marketing indent office. Then the indent office prepares the supply sale further
management to distribute commodities in the right time. A zonal officer can
maintain 125 170 agents. The milk cards are also issued by the zonal officers.
The zonal officers prepare the order for the next day requirement and send
it to marketing indent section through email or manually.
FUNCTIONS OF ZONAL OFFICER:
Cash collection from the concessionaries and retailers.

 Cash sales throughout the month at different dates

Supervising the deposits under their control
MARKETING INDENT SECTION:
Indent section is a place of consolidation. All payment related activities
are taken place at this section. This section manages the bills of selling and
orders for the next day requirement. Maintaining an account that deals with the
indent quantity and sales quantity of milk including special order milk.
Supplying the milk according to their milk supply routes. The daily production
can determine by this section only. The indent section analyses the entire
marketing channel requirement and finding the whole requirement of milk for
the next day supply. Totally there are 51 vans supplying the milk around the
Madurai city. Among them 7 vans is supplying milk to the rural areas where
payment is made on the spot for the next days requirement.
The rural market supply is done by the contract vehicles. These vehicles
are appointed by the tender who are announced every 2 years once. The indent
section establishes the milk supply routes to rural areas. The following are the
milk supply routes in rural areas.

Melur
Theni periyakulam
Alanganallur
Thirumangalam
Sakkimangalam
Theni town.