BUSINESS PROPOSAL

ON
SETTING UP OF MILK CO-OPERATIVES
IN
AMHARA VILLAGE OF BIHAR

Written Analysis & Communication

Ayushi Vohra
Sec-B
281071

Cover letter
To: Rishabh Arora
From: Ayushi Vohra
CSR Head, Indicom Consultancy Group

Subject: CSR Business Proposal for FY 2019-20

Dear Sir,

As per the CSR initiative of our company we are planning for a different kind of
initiative this year, this report covers the proposal to set up milk co-operatives
in Amhara district of Bihar.
This report proposes to urge you to take up this initiative of setting up milk co-
operative which is inspired by the success of similar implementation in various
districts of the country
This initiative will uplift the lives of rural people in the country and also will
help us build a strong brand name across the country. I would strongly
recommend you to take up this initiative

Ayushi Vohra
CSR Head
Indicom consultancy group
Table of Contents
Executive Summary………………………………………………………………………………………….4
Introduction........................................................................................................ 4
Problem Statement..............................................................................................5
Background…………………………………………………………………………………………………..…5
Analysis/Feasibility …………………………………………………………………………………………6
Project management...........................................................................................7
Manpower………………………………………………………………………………………………………8
Budget................................................................................................................ 8
Challenges………………………………………………………………………………………………………9
Conclusion…………………………………………………………………………………………………… 10
Works Cited.......................................................................................................10
Executive Summary
The project aims at bringing automation in the process of milk collection and
distribution using the state-of-the-art technology so that maximum efficiency can be
obtained. Also, to increase the production of milk to twice in a span of 6 years. This
would help India to strengthen its already bustling livestock economy and move
towards sustainability.

With the implementation of Dairy Information System Kiosk (DISK) methodology,

which is already operational in many states, has showcased tremendous results with
smoothening the overall process while ensuring incredible time and cost saving. It will
help in bringing immense benefit in improving farm sector.

Adoption of project in Bihar will bring income generation, improvement in farm

sector, adding to the productivity of the state and provide them infrastructure and
assistance in the field of IT to organize and systematically facilitate the collection,
distribution and testing of milk in the villages.

Introduction

According to National Dairy Development Board (NDDB), India is the largest

consumer of milk in the world. The dairy sector in India grew at a rate of 6.4 percent
annually in the last four years against the global rate of 1.7 percent. Also, milk is
nutritionally important being a rich source of calcium and protein for majority of
Indian vegetarians. Due to this there is a constant rise in domestic demand for dairy
products and a large demand-supply gap the quality and productivity of the dairy
sector is deteriorating which is further leading to inflation.
According to FSSAI Survey 41% of milk samples are poor in quality and 7% of
samples were unfit to consume. As a result, India’s livestock contribution is more than
its crop contribution. The need for educating the farmers is necessary which will help
the cooperatives and farmers alike. Keeping in view the large CSR budget possessed
by the company, it is proposed that a similar kind of cooperative movement in the
milk industry be implemented in various other districts in the state of Bihar.

Statement of Need/Problem Statement

Use of technology that can be improved to empower workforce capability by
creating jobs locally
Sub- Issues:
1. Language barriers, lack of infrastructures, land issues and most important
financial constrains
2. Difficulties in collection of milk
3. Coordination of storing, processing and distributing the milk
4. Delayed payments to farmers
5. Lack of education and awareness among farmers
6. Non availability of trainers

BACKGROUND

The livestock activities, among which dairy farming predominates, employ about 9.9
million workers in the country. CSR can actually play an important role by developing
villages and providing the farmers a platform for growing and becoming good enough
to compete with the highly organized dairies. This will further be helpful for India to
have a good position in the dairy sector.    
The National Dairy Development Board (NDDB) started a movement in Amul Dairy
in Gujarat which is now replicated in 70,000 villages in about 200 districts of India. It
deals with using computer technology in all of the 70000 villages. 
These systems introduced very satisfactory milk collection methods and facilitated
immediate payments to farmers based on the quality and quantity of milk delivered.
The success of these systems coupled with inexpensive connectivity opportunity
offered by Internet, motivated the CEG-IIMA to enhance the PC at the Automatic
Milk Collection Systems (AMCS) into a Dairy Information Services Kiosk (DISK)
and offer an extensive knowledge and service delivery mechanism through a Dairy
Portal. The DISK software provides many services, some of them are delivery of
information related to dairying, including best practices in breeding and rearing milk
cattle, scheduling of government and other private sector agency services, and
collecting feedback on the quality of service provided to the catchment area, Internet
Banking Services and Automated Teller Machines (ATMs), which will enable the
milk societies to credit payments directly to sellers' bank accounts and a means of
communicating with farmers via the automatic printing process of daily payment slips.

Implementation
DISK implementation process

The Dairy Information Services Kiosk (DISK) software is designed to be installed on

the PC at the milk collection Centre of the DCS. The DISK software facilitates
creation and maintenance of databases in the regional language of the society. It stores
and maintains the databases of cooperative society members, their cattle, artificial
insemination, veterinary, cattle feed and other service transactions in addition to the
daily milk transactions. Based on this data, the DISK software generates alert as well
as routine messages in the regional language, to be given to the farmers when they
come to deliver the milk. These messages typically draw the attention of the farmer
towards the health and productivity aspects of his milk cattle.
The Disk project was conceived with two components:

• An application running at the society level that could be provided through the
Internet connectivity
• A dairy portal at the district level serving transactional and informational needs of all
the members and staff in the district cooperative structure.

Traditional System of Milk Distribution

Analysis/Feasibility

1. Location- Reaching out to market places which are growing- Leasing a room
around Bihta Railway Station to open DISK
2. Aim for self-sustainability after 3 years
3. Investment in machines and equipment’s as the company has large budget for
CSR
Equipment’s required would be –

 Equipment No.
 An Electronic Milk Tester
 Personal computer
 Utensil to hold milk
 Plastic ID card for PC identification
 Supplies to educate farmers As per the requirement
 The Software to keep a track of all the details about farmers and their
cattle, as well as for data analysis and forecasting milk production.

4. Installing network towers near the location

5. According to Porters Model- Industry Rivalry is low, there are no competitors,
less substitutes available and low customer, supplier bargaining power
6. Product Feasibility: The suggested concept application using Information
Technology in the dairy sector was developed at Indian Institute of Management,
Ahmedabad (CEG-IIMA). The application aims at helping the dairy farmers with
timely messages and educating them on the care for their milch cattle and
enhance the production of quality milk. It also aims at assisting the dairy unions
in effectively scheduling and organizing the veterinary, artificial insemination,
cattle feed and other related services. The application uses Personal Computers
at the milk collection Centres of the Dairy Cooperative Societies (DCS) having
connectivity to an Internet Service Provider (ISP).

Project Management

 As the company has large CSR budget, money will be received in instalments
and distributed according to the phases planned
 Initial Research will begin from December, 2019 through expertise in the area
 Before setting up, permissions will be taken from government and rural works
department
 After analysis DISK System will be installed and staff will be trained
accordingly
 Salaries will be provided at every stage to the staff
 Digital empower foundation will give ground data
Manpower

Apart from the project team, these personnel would be required for the day to day
operation and maintenance –
• Regional Managers- 2 (For supervising the overall operations of all the villages)
• Collection centre supervisors- 6 (Each centre would require 1)
• Manpower for equipment maintenance- 2 (overall)
• Engineers IT- 2
• Operators- 6 (Each centre would require 1)
• Maintenance staff- 6 (Each centre would require 1)

Budget

Particulars Cost (INR)

Electronic Milk Tester, PC, and other instruments 15,00,000

IT equipment and procurement and Installation 80,00 ,000
Rent 7,00,000
Deployment of infrastructure 20,00,000
Training 3,50,000
Regional Manager 14,00,000
Supervisor 8,00,000
Engineers 10,00,000
Operators 10,50,000
Maintenance Staff 20,00,000
Conveyance costs 6,00,000
Allowances 5,00,000
Internet connection 1,00,000
TOTAL 2,00,00,000

Challenges
 Communication Services in Rural areas
 Telecommunication Investors and financial institutions for loans
 Telecom equipment vendors
SCALERS Model to overcome Challenges:

1. Labour Needs
 Volunteers
 Advocacy Workers
 Trainers
 Accountants
2. Communication
 NGO
 SHG
 Locals
3. Alliances
 Local and Corporate
 Grameen Banks
 Institutes
4. Lobbying
 Government
5. Earnings Generation
 Farmers
 Local trainers
 Advocacy Workers
6. Replicating
 Working Model
7. Stimulating Market Forces
 Enhanced Farmers
Conclusion
The milk union in the Amhara district, Bihar where there is a decline in milk
procurement as compared to last year, will be tapped through this project and
the market with high growth opportunities will also be entered. There are around
20000 memberships in the district, but then also the amount of milk
procurement is less and the cost of a litre of a milk is declining due to lack of
proper IT system. This lacks of modernization and the IT concerns in this
particular industry can be proved beneficial to the company which is entering a
new market to launch its flavoured milk and to build a strong foot holding in this
region along with leveraging on its CSR initiatives. 

Works Cited
REFRENCES
• Dairy Article Case
• Wikipedia
• https://www.nddb.coop/
• http://www.indiandairyequipment.com/dairy-equipment.html