MOTHER DAIRY

INDUSTRIAL VISIT
REPORT
MANAGEMENT FUNCTIONS
 Planning

 Organizing

 Staffing

 Directing

 Controlling

 Production department
 Finance department
 Marketing department
 Human Resource department
ABSTRACT
The report consists of the details on Mother Dairy India Ltd. It is one of the most effluent
company’s of India for processed milk and milk Products. The main aim of it is the welfare of
the society by providing quality milk to its consumers at an affordable price. This report also
contains the detailed information about the rise in dairy industry. The dairy industry has being
studied in detail, so that that can be converted into information which can be used by mother
dairy for strategizing its marketing advertisement areas. It has various functional departments
such as the Production, Human Resource, Finance, and Marketing. This report is descriptive in
nature but contain vital data of the capacity of Indian dairy industry and competitors to mother
dairy. This report will help mother dairy to make strategies for their long term objective.
 TABLE OF CONTENT
S.NO TOPIC
1 INTRODUCTION
2 HISTORY
3 MAIN CONTENT
4 CONCLUSION
5 RECOMMEDATION
6 REFERENCES
ABOUT DAIRY INDUSTRY

Introduction
The dairy sector in the India has shown remarkable development in the past decade and India has
now become one of the largest producers of milk and value-added milk products in the world.
The dairy sector has developed through co-operatives in many parts of the country. During 1997-
98, the States (Delhi-Haryana-Uttar Pradesh) had 17574 million tones production capacity,
which rose to 29719 million tons by the year 2012. In addition to many processing plants, many
government co- operative societies and chilling centers have being made.

About the Indian dairy Industry

In India, the dairy sector plays an important role in the country’s socio-economic development
and constitutes an important segment of the rural economic.

Dairy industry provides livelihood to millions of homes in village, assuring supply of quality of
milk and milk products to both urban and rural areas. With view to keeping pace with the
country’s increasing demand of milk and milk products, the industry has being growing rapidly.

According to research report “Indian Dairy Industry Analysis” India is world’s largest milk
producers accounting of around 17% of the global milk production. Besides, India is also one of
largest consumers of milk and milk products. Due to rich nutritional qualities, the consumption
of dairy product has being growing exponentially in the country, and considering such facts and
figures, my study anticipates that the milk production in India will grow at a CAGR of around
4% during 2012 to 2015.

With rising use of dairy product, the secondary market of dairy product has been flourishing, my
report observed.

Covering the necessary aspects of the Indian dairy industry, the study facilitates knowledge
about its current market scenario and future growth. Analyzing the past and current state of the
industry, the report tries to find out how trends like the entry of international companies and
packaging are attracting the consumers and heeding towards further growth in the market. This
way, it presents a clear picture of the direction, in which the industry is likely to proceed in the
coming years.

The government is taking several initiatives and running plans and programs like National Diary
Plan and Intensive Dairy Development Program to meet the growing demand for milk in the
country. Our report talks about such schemes, and government regulations to present an
objective and balanced picture of the industry.
About the Company
Mother Dairy sells milk and milk products (Milk, cultured products, Ice creams, Paneer and
Ghee) at a national level through its sales and distribution networks for marketing food items.

Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives.
It is Mother Dairy’s constant endeavor to ensure that milk producers and farmers regularly and
continually receive market prices by offering quality milk, milk products and other food products
to consumers at competitive prices and uphold institutional structures that empower milk
producers and farmers through processes that are equitable.

At Mother Dairy, processing of milk is controlled 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. Mother Dairy is
an ISO 9001:2008 (QMS), ISO 22000:2005 (FSMS) and ISO 14001:2004 (EMS) certified
organization. Mother Dairy has Certificate of Approval from Export Inspection Council of India
also. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board
for Testing and Calibration Laboratory (NABL)-Department of Science and Technology,
Government of India.

Mother Dairy markets approximately 3.2 million liters of milk daily in the markets of Delhi,
Mumbai, Saurashtra and Hyderabad. Mother Dairy milk has a market share of 66% in the
branded sector in Delhi where it sells 2.5 million liters of milk daily and undertakes its marketing
operations through around 1400 retail outlets and over 1000 exclusive outlets of Mother Dairy.

The company derives significant competitive advantage from its unique distribution network of
bulk vending milk booths, retail outlets and mobile units. Mother Dairy ice creams launched in
the year 1995 have shown continuous growth over the years and today boasts of approximately
62% market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide range
of dairy products that include Butter, Paneer, Dahi, Ghee, Cheese, UHT Milk, Probiotic
Products, Lassi & Flavoured Milk and most of these products are available across the country.

Mother Dairy has over the past 3 decades, harnessed the power of farmer cooperatives to deliver
a range of delicious products and bring a smile on your face.
Objectives and Business Philosophy of Mother Dairy
The main stakeholder of Mother Dairy was the farmer member for whose welfare it existed.

Unlike other organizations, their objective is not to maximize the profit. They are more interested
in giving the best price for the farmers for their milk than in making a large profit. Thus they
look at the price given to their suppliers as not a cost but as an objective.

Mother Dairy had, as its main objective, “carrying out activities for the economic development
of agriculturists by efficiently organizing marketing of milk and dairy produce, agricultural
produce in raw and/or processed form and other allied produce”.

This was to be done through:

 Common branding
 Centralized marketing
 Centralized quality control
 Centralized purchases and
 Pooling of milk efficiently

Mother Dairy had declared, as its business philosophy, the following:

· ensure that milk producers and farmers regularly and continually receive market prices by
offering quality milk, milk products and other food products to consumers at competitive prices
and; uphold institutional structures that empower milk producers and farmers through processes
that are equitable.

The biggest strength of Mother Dairy was the trust it had created in the minds of its consumers
regarding the quality of its products.

NDDB and its brand Mother Dairy stood for guaranteed purity of whatever products it had
produced. Adulteration was simply not done in any of its products. In India, where such trust was
hard to come by, this could provide a central anchor for Mother Dairy’s future business plans.
For more than 40 years' Mother Dairy helping to create a national network has been adapted and
extended to other commodities and areas. Their constant effort to learn and to enrich experience
is central to their approach and capacities.

In times to come, Mother Dairy shall strive to become a leading player in the food industry in
India.
HISTORY
Mother Dairy was commissioned in 1974 as a wholly owned subsidiary of the National Dairy
Development Board {NDDB}. It was an initiative under Operation Flood, a dairy development
program aimed at making India a milk sufficient nation. Mother Dairy sources a significant part
of its requirement of liquid milk from dairy cooperatives and village level farmer centric
organizations.
The company originally focused on Delhi and other parts of the National Capital Region (NCR).
It later expanded to other regions in India.
PROCESS
The Process Flow of the Mother Dairy:

Raw Milk Reception:

Raw milk received through insulated road/rail tankers at a very low temperature thus retaining
the freshness of milk. The milk goes for more than 15 stringent quality tests before it is accepted
for the processing of milk.

Milk achieved from individual producers is checked for all basic quality parameters meeting the
company specification and required norms at respective collection and chilling centers.

Milk is then supplied to the dairy units through insulated milk tankers at 4 degree C.

Processing of Milk:
Processing of milk is done in basically 4 steps :

 Clarification
 Standardization
 Homogenization
 Pasteurization
  Clarification: The chilled milk from the silos goes to the clarifier after pre-heating. The
clarifier spins the milk at very high speed, removing all the dust particles that are
invisible to naked eyes.

 Standardization: Milk from different breeds of cow and buffalo may vary in its
composition. Hence, to make Milk uniform in composition, before supply to the market,
it is standardized by raising or lowering its fat and SNF percentage present in the milk to
a desired level, so as to deliver the milk to consumers as per prescribed norms of FSSAI.

 Homogenization: In this process, the milk is processed at very high pressure during
which the large fat globules presently in milk are broken down into tiny droplets. The
milk fat gets evenly distributed in the milk and milk become whiter and thicker. Milk is
homogenized for consumers who do not like cream layer on top. Homogenization
improves Palatability of milk and is easily digestible.

 Pasteurization: The milk is then pasteurized, named after Louis Pasteur, a French
Scientist who invented the process to use in wine. Pasteurization was first applied by Dr.
Soxhiet of Germany. This involves heating of milk to 72 degree Celsius for 15 second
and then cooling it down to 4 degree Celsius. The process kills all pathogenic bacteria
present in the milk making. It makes milk safe for consumption. Pasteurization, unlike
boiling does not affect the nutritional value of the milk.

Key products manufactured by Mother Dairy:

 Milk
 Milk Products
 Ice Cream
 Paneer
 Ghee
 Fruit Juices
 Jams
 Pickles
MANAGEMENT FUNCTIONS…

Managerial Information
Planning
Organizing
Staffing
Directing
Controlling

 PLANNING

Planning Procedure
Planning in following steps

1. Forecast the Agriculture areas

2. Analysis the availability of milk

3. Selection the best alternative or All areas

4. Do work on milk for better quality

5. Supply the milk and milk product

Forecasting
Forecasting is done in Mother Dairy Fruit & Vegetable Pvt. Ltd.

The factors for forecasting are as under:

 Agricultural environment
 Raw material ( Milk )
 Competitors (Sumul dairy, Dhara dairy, Amul)
 New products
 Customers Preference
Decisions Making
All the important decision of the company are taken by the board of directors.

Such types of decisions taken by board of directors like as:

 Launch of New Products

 Purchase of raw material
 Quality of Raw material
 Financial Decision
 Marketing Decision

Key Strategies
 Quality of the product
 Availability of the product
 Packing of the product
 Price of the product
 Healthy product

 ORGANIZING
Organizing involves decision about distribution of work and authority and responsibility.

Organizing is the distribution of work in group wise or section wise for effective performance

Organizational Structure of the company

In Mother Dairy Fruit & Vegetable Pvt. Ltd. There is a line type of organization in which
responsibility flow upward and authorities flow downward and upward. The following is the
organizational structure of Mother Dairy Fruit & Vegetable Pvt. Ltd.
  STAFFING

Staffing process
• Advertisement

• Selection

• Training

Staffing Techniques
1) Application form

2) Reference checking

3) Interview

4) Final selection

5) Placement
  DIRECTING

PROCESS OF INDUCTION
 Firstly, information is given to newly appointed person to whom he has to give a report
and the place of report.
 Secondly, the respective manager welcomes the employees.
 Thirdly it gives overall information about the department in which he/she is designated.

Training and Development

-In Mother Dairy Fruit & Vegetable Pvt. Ltd. give training to its employees according to the job
required from them.

- They mostly train their employees as per on job training.

- If on job training is not enough, they also give their employees external training.

Motivation
• The company provides some non-financial motivation as under:

a) Medical Facilities

b) Canteen facility

c) Transport Facility

d) Other Benefits

• They also provide bonus, gratuity, provident fund etc. Festival, holidays, causal leaves and
earns etc.
  CONTROLLING

Process of Controlling

Future plans
Future plans of Mother Dairy Fruit &Vegetable Pvt. Ltd. Are as follows :

1. To get more and cheaper production.

2. To launch new Milk products.

3. To establish a new plant in Gujarat region so as to reduce the burden on Junagadh unit

.4. Increase the Market power more than Amul.

PRODUCTION DEPARTMENT
Production Department is most important part in any organization, firm, company or co-
operative sectors. Production can be made for the middle users or for the end- users (direct
consumers). Production do the main work of converting raw material into semi-finished or
finished goods, it depends on what kind of production the organization is doing.

In the context of Mother Dairy, people have endless demand for milk and milk products.
MOTHER DAIRY undertakes the procurement of milk and its production likewise satisfying the
needs and demand of people. It estimates the demand and accordingly production is done for
which arrangement of Raw material, finance and provision for selling is made by MOTHER
DAIRY.

The Production Department is interrelated with the Personnel, Finance, and Marketing
Department. On an average 30 million litres of milk is processed by Mother dairy.

Major Products of Mother Dairy:

Following are the some milk products that the Mother Dairy products and sale in different areas
of Delhi-NCR.
Activities of Production Department:
There are mainly Eight (8) activities done by the Production Department. They are as follows:

1. Raw Material Receiving Dock

2. Clarification

3. Homogenization

4. Pasteurization

5. Chilling

6. Processed Milk

7. Deep Chilling

8. Dispatch in Insulated Tankers

Mother Dairy has set up a modern plant for the production process. It has established its plant in
a modern high tech style which functions nearly 80% automatically.
FINANCE DEPARTMENT
Finance is the most crucial part in any organization. Finance is required in each & every stage of
the business. Business is nothing but a process of making money through money. The finance
department of a business takes responsibility for organizing the financial and accounting affairs
including the preparation and presentation of appropriate accounts, and the provision of financial
information for managers

The primary purpose of the Finance Department is to monitor and report on the financial position
of the Mother Dairy and to provide an excellent level of service to their public customers and
customers in other City Departments.

It can be acquired through various sources. After the acquisition of finance, the work of
utilization of finance is to be decided. The finance department has to deal with not only the
procurement of finance but also with the proper utilization of it. Finance is the basic requirement
for purchase of assets, production of goods, marketing, selling, etc. The finance department takes
the decision regarding financial matters. Thus, we can say that finance dept. is one of the most
important dept.

Source of Finance in Mother Dairy

Mother dairy does not raise finance for short term as all the requirement for short- term finance
are fulfilled by the internal sources (i.e. reserves & surplus). Mostly, finance is raised from long-
term sources of finance. All the requirement of finance is fulfilled either by issuing equity shares
or by taking loan from “National Dairy Development Board”. The repayment of loan is done
in equal installments, the amount is pre-decided. Generally, 8% interest is charged on the amount
of loan.

The Main Areas Covered By Financial Department in Dairy

 Book keeping procedure
 Creating a balance sheet & profit and loss account.
 Providing information to management.
 Management of wages & salary.
 Raising Funds.
 Cost allocation.
Capital Structure in Mother Dairy
Capital structure of an organization refers to procurement of capital. Capital structure including
all the financial. Thus capital structures of an organization show how or through which sources
raised.

Mother dairy is a co-operative society and its capital needs are fulfilled by NDDB.

Mother Dairy Is A Co-Operative Organization. It Does Not Issue Right Or Any Other Public
Issue. Therefore There Is No Question Of Any Bonus.

“MOTHER DAIRY” does not have any other source of raising fund, for any undertaking it is
financial by NDDB or self financing.
MARKETING DEPARTMENT
“It is clearly said that Marketing Department is the Front Face of any organization or
firm”. This is said because marketing is the only means from where the consumers can know
about the upcoming products of the firm or organization. This indirectly gives result in increased
sales of products.

Marketing - In other sense, means promoting the product publically and to bring revenue
through sales. Marketing Department does the function of creating demand in people and
generates sales from it, which completely depends on marketing department.

Mother dairy is having a full-fledged marketing dept. where all the functions related to
marketing are performed. As a part of marketing strategy Mother Dairy has increased its
Morning milk centers.

Also mother dairy have introduced various innovative distribution format such as

 Milk Shops.
 Franchise Shops
 Kiosks
 Insulated Containers
 Container on wheel

This distribution is itself so innovative that make mother dairy different than their competitors.

 Strategies Implemented
 Focused Approach
 Wider Spread
 Product Differentiation
 Smart Marketing
HUMAN RESOURCE DEPARTMENT
There is a well versed Quote saying that “Employees are the assets of any organization”. This
depicts that they are most important tool of organization. Thus to maintain them for the
organization, Personnel department (Human Resource Department) is kept for the well being of
employees.

The function of Human Resource Department can be seen in each and every department of any
organization. Thus it can be easily said that “The Human Resource Department” is the heart of
any organization. The function of Human Resource Management is to manage the people
working in the organization. It mainly focused on the intrapersonal relationship and interpersonal
relationship of employees.

Human Resource Management in simple words means planning, organizing, directing and
controlling of procurement, recruitment, selection, training and development, compensation,
integration, maintenance, appraisal, allocation and separation of Human Resources.

Thus, Human Resource Management refers to set of programme, functions and activities
designed and carried out in order to MAXIMIZE the employee’s as well as organizational
efficiency and effectiveness.

Human Resource Management at Mother Dairy

“Mother Dairy is one of the leading Dairy” It shares collaborative and friendly relationship with
preferred partners, employees, consumers and other workers involved to it. It maintains a
transparency in handling the above relations and stick to its standards.

The HRM function or Personnel department function in Mother Dairy is indeed vast. All major
activities since working of a worker – from the time of his/her selection in to an organization
until he/she resigns or get retired or leave job for any reason – comes under the preview of
HRM.

The HR planning in Dairy is very smooth and transparent. It made Mother Dairy a HUGE BIG
Family of approximately 3000 employees. In Mother Dairy major attention is given on the
welfare and Safety of employees.

Dairy also focuses on developing human value and potential through various bearing and
development activities and provide favourable atmosphere. All these functions are performed by
HR in Mother Dairy.
HIERARCHY OF PERSONNEL DEPARTMENT

Human Resource Is Divided Into Different Parts

The HR in Mother Dairy in mainly divided into four sections:

 Personnel Department
 Recruitment, selection, training, industrial relations, negotiation with Union etc.
 Administration Department
 GENERAL MANAGER (P&A) MANAGER (PERSONNEL) MANAGER etc.
 Its handles canteen, security, welfare facilities, safety, Any theft or loss, Absenteeism ,
events, AGM meeting organizing, licensing work, hygiene of various dept, etc.
 Time Keeping Department
 It handles salary & wages, records of employees, provides benefit of statutory, ESS,
Form fill up, punching System, provident fund, ESI etc.
 Telephone Department & Computer Department
 Maintains the connection of each department and provides facility of CUG to each
employee to remain in contact while doing work. So that if any query or problem occur
 they can contact each other easily. Computer system handles the whole MIS in Mother
Dairy.

 SWOT

Strength:

 Different Variety of Milk.

 Recognized brand name
 66% of Delhi-NCR market share
 Trust of customer

Weakness:

 No Of Outlets are less

 Pays less to Farmers as compared to Amul
 This in return causes difficulties in engaging farmers

Opportunity:

 As the dairy industry is rising with rate of 5%, whereas population is rising by 17%
making vast scope for expansion
 As the rise in Index of Wholesale price of Milk roused by 10.85%, thus there is huge
potential in Milk industry
 Rise in Index no of Wholesale Price of Dairy Product from year 2010 to 2011 by 12.78%,
thus making it profitable for Dairy Industry

Threats:

 Facing tough competition from competitors like AMUL

 Pricing policy for procuring milk is far less than its competitors, causing loss in faith of
farmers
 Supply chain management of competitors are much better
CSR ACTIVITY BY MOTHER DAIRY
Mother Dairy no doubly provided value to farmers and safe milk to consumers. Corporate Social
Responsibility (CSR) is thus an integral part of the business model on which Mother Dairy
operates.

Multitude of social development and other initiatives have been nurtured by Mother Dairy from
its earliest days. At Mother Dairy, their commitment to ethical conduct and social responsibility
is core value of doing business, and is strongly aligned with their vision to create and increase
value for farmers and to provide affordable, safe, healthy and tasty products to consumers.

Community
Mother Dairy’s prime commitment is to serve farmers

Mother Dairy sources significant part of its requirement of Liquid Milk from Dairy
Cooperatives. Similarly Safal sources its requirement of Fruits and Vegetables from
farmers/growers association and Dhara helps the Oilseeds Grower Cooperatives by sourcing the
production of the wide range of Dhara edible oils from them. This ensures that the farmers get
the appropriate prices for their yield and quality. Mother Dairy also works towards improving the
standards of the farmers by educating them about better farming techniques, hygienic practices
and modern methods of dairy farming. This initiative by Mother Dairy is directed towards
making the farmers independent and financially self sufficient.

Environment
Mother Dairy commitment towards environment.

Mother Dairy promotes the Bulk Vended Milk, better known as 'Token' milk. Mother Dairy
pioneered the concept of hygienically processed milk that is retained hygienic to the consumer in
an unpacked condition. Mother Dairy sells approximately 10.5 lakh litres of token milk in Delhi
alone and thus ensures more than 5 tones less consumption of plastic in Delhi every day.

CONCLUSION
Mother dairy is determined to provide better services to farmer members and pay good prizes for
milk to its members and continue supply good quality milk, ghee, etc. to the consumers at a
reasonable prize. The Mother dairy provides us many variety in the different products like milk,
ice-cream, buttermilk etc. They always try to provide best and hygienic product to their
customers. The prices of their product are reasonable so any people can buy it. They maintain
their processing plant very well. They have modern machinery and technology. The union is
making reasonable profit to enable dairy to distribute profit to farmer through society. The
coordination and confidence in the management shows the bright future go the union. Mother
dairy also present new and tasteful items. They give employment to many people. Because of
their company many people get employment like farmers, workers. They provide good services
and products to the people. In short mother dairy has been able to strike a proper and effective
balance between the ever increasing expenses and comparative revenues without compromising
on the quality of the product.
RECOMMENDATION
 Must focus on growing market opportunity.
 Must revise its strategy of procurement of milk from farmers in regards to payment of
price/litres.
 Overseas market have huge capacity, must work aggressively on global expansion
 Mother dairy facing challenges in Saurashtra region, due to AMUL which has market
value of 10000 Cr.
 Mother dairy loosing competition to Amul, due to weak supply chain management of
Mother dairy.
 Thus Mother dairy must focuses on its supply chain management.
 There is huge gap in rise in population and rise in milk industry, thus the population is
rising by 17% and rise in dairy Industry is 4%.
 Mother dairy can utilized this in positive way to diversify itself in regard to expansion as
well as product differentiation.
REFERENCES
 www.motherdairy.com

 www.ndri.res.in

 www.wikipedia.org

 www.slideshare.net