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Milk industry

DAIRY SHUDH
PRESENTED BY:RUCHIKA PANDEY SAUMYA SRIVASTAVA RUBY GUPTA TULIKA SAXENA GEETIKA SHUKLA

THE BUSINESS PROFILE

DAIRY SHUDH
Glass of health and purity.

If you wanna drink something real Drink SHUDH.

www.dairyshudh.com

Logo Dairy shudh trade mark

THE OBJECTIVES OF THE COMPANY


VISION To become synonym for the dairy products in India and in abroad.

MISSION To reach every homes and rule every heart by providing variety of value products by taking care of people and their health.

Head office

Head office in Delhi Industrial plant in GURGAON within 8 months in NOIDA.


with expansion plans to VARANASI,

LUCKNOW,
AGRA.etc Will also expand to M.P, CHATTISGARH,

ORRISA AND MAHARASTRA.

Products
Major product-----Milk

Skimmed -0.5% max. fat, Toned- 3% fat, Full-Cream- 6% fat


(In packets of 1\2 ltr, bottles 1 ltr, 5ltr. Containers)

Milk powder; Butter Dahi Cheese Paneer Cream after 8 months of commencement Ghee (**Ice-cream ,protein powder, shakes, fat free butter ,condensed milk, flavored milk will be included in our expansion plan depending upon our market response**)

Pricing
Product Price (own ) Price (Competitors)

Skimmed (per\ litre)


TonedFull-CreamMilk powder (50gm) Butter (100gm) Dahi (250 gm)

28
30 38 10 22 15

30
34 40 12 25 18

Place
Target market: Places near Gurgaon and noida.

Target customers: all age groups


Customer care center: New Delhi Cold storage: Noida

Consumer education: organizing dairy visit (schools &


college & Mahila Mandals & other social organization)

Setting up booths outside hospitals, malls, parks etc.

Market expansion: Increasing the number of outlets & retailers, parlors.

Promotion & growth:


Extensive advertisement through wall paintings & printed materials like

pamphlets, glow sign Board etc.

Use of social networking sites like facebook, blogs, etc. Free samples & free packets to dealer as per sale. Attractive packaging Credit sales schemes up to 7 days to local vendors New production plants in different cities and new product lines in

following years.

Competitive analysis
market share
7% 6% 12% 40% amul parag mother dairy dairy shudh others

25%

www.dairyshudh.com//http.dairyshudh.htm..//

ABOUT US

Our Dairy Our product educatio Promot s n ers progra mme

Future prospe cts

Dealers and supplie rs

Feedba Contac ck t us And complai nts

Procurement Channel:
Dairy farmers bring cows to collection stations

Raw milk extracted and stored in containers Collection stations transport raw milk to our local processing units facilities in special containers Wet Different qualities of milk are separated into separate containers Dry Raw milk dried in local processing facilities

Processing of butter and dahi

Extract from all the process send for packaging

Distribution of products

3 Phase Distribution channel:

Other features:
Availability of milk throughout the day by opening parlous

,Booths and Depot. Introduction of Insulated vehicles & modern cold storage. 5 ltrs. Milk containers is innovative strategy for Indian market, promoting it by offering free samples of butter and powder milk. 3-phase distinctive supply chain to cover the wider market Positioning based on price , target market, customer requirement , quality and market reach. Campaigns' about dairy farming and cattle management in villages. For increasing milk productivity.

Organizational structure

LICENSING
FSSAI- food safety and security act of india. Factory license Boiler operating license and weight and measurement

inspection PFA-prevention and food adulteration act memorandum to the Secretariat for Industrial Approvals (SIA) and an acknowledgment is to be obtained. Certificate of Registration - the Milk and Milk Products Control Order (MMPO) 1992.

INSURANCE
insurance contract with the United India Insurance Company Fire insurance - buildings, machinery, accessories, stocks and stocks in

process, equipments including furniture Insurance cover for breakdowns. Insurance of the members of the company against death and health issues

Certifications
We have contract with an ISO Certification

company TNV which deals in providing ISO certification to Indian companies . Established as per requirement of IS\ISO\IEC 17021:2011, (Conformity Assessment Requirement for Bodies Providing Audit and Certification of Management Systems. The amount of contract of all certification is costing around 1.2 lakhs.

ISO 27001:2005 (BS 7799) Information Security Management System


Based on:

It is a management tool aimed at reducing risk in your organization It is proof to your customers and purchasers of the high level of security management It is an improvement tool to set up a continuity plan for your operations It is a way of complying with national and international laws, Your staff members are wellinformed and Information security costs of your organization are managed It is internationally recognized in all sectors, giving you access to new markets across the world.

Requirements:

Introduction Scope Normative references Terms and definitions Information security management system Management responsibility Internal ISMS audits Management review of the ISMS ISMS improvement Control objectives and controls OECD principles and this International Standard Correspondence between ISO 9001:2000, ISO 14001:2004 and this International Standard

ISO 22000:2005 Food Safety Management Systems


Based on:

Requirements:
Provide well-planned and stage by stage audit program. A sound, coherent and non disruptive assessment. An enviable record of customer satisfaction.

HACCP Principles Pre requisite programs Operational pre requisite programs HACCP Plan Interactive communication between processes Monitoring & measuring tools and methods System management

ISO 14001:2004 Environnent Management System


Benefits:
Reduce cost of waste management Savings in consumption of energy

Requirements:
Phase 1: Establishing the environmental goals (policy). Phase 2: Planning the elements of the EMS. Phase 3: Implementing the EMS. Phase 4: Checking for any problems and correcting them. Phase 5: Evaluating the effectiveness of the EMS and improving it, and launching into a new cycle of improvement.

and materials Improved compliance Overall Costs Reduced Fewer accidents Competitive advantage Improved use of resources Framework for continuous improvement of your environmental performance Improved corporate image among regulators, customers and the public

Certifications :ISO 9001 Quality management systems:


Based on:
Customer focus Leadership Involvement of people Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships

Requirements:
System Study & GAP Analysis Documentation- Preparation of

Quality Manual, Quality Procedure, Work Instructions, Formats Records Generation, Implementation and Updating Trainings- Management & Work Force Level Internal Audit & MRM Guidance through the Certification Audit Closure of the NonConformities raised Annual Maintenance Contract(Optional)

HUMAN RESOURCE
(HEAD OFFICE TEAM) Top Level Management Partners- A,B,C,D,E -5

Middle Level Management Manager Finance & Administration -3 Manager Sales & Marketing-6 Manager (Procurement, Production & Operations) First Level Management 2 Assistant accountants 4 Assistant Sales & marketing officers General Staff 1 Communications Officer 1 Office Clerk 1 Office Boy

MANPOWER PLANNING
HR STAFF Mechanical technicians:- B.tech , M.tech 3 4-

mechanical Computer engineers.- B.tech 2 years work experience CA for company accounts Hiring of legal firm for legal advices and other contracts
Operation manager & supervisor Marketing manager and (5 yr work ex)+

5
1 1

junior manager and sales executive workers for production and packaging clerical staff R&D OFFICERS B.sc biotech and M.sc. for food quality control & support staff

2+1 15

30 10 4+4 TOTAL=80

JOB PROFILE
Qualification needed by an HR manager /other managerial post for applying in milk product industriesKnowledge, skills and abilities In the farm area, a thorough knowledge of milking techniques, milking machines and milk handling equipment and other factors related to dairy farm management (e.g. feeding, breeding, etc.). In the fluid milk and dairy products processing area, a good knowledge of the manufacturing procedures and equipment for milk and milk products. A good understanding of sanitation and quality control is required.

Education, Training and Experience In the farm area, a Diploma in Agriculture plus experience related to dairy herd Management.

JOB DESCRIPTION OF AN HR MANAGER


Key responsibilities of the HR Manager:
Lead and direct the Human Resource team to deliver a

comprehensive HR service to the business Managing absence disciplinaries, grievances, sickness etc. Measure employee satisfaction and identify areas that require improvement Training - Implementing the training and development agenda; identify areas that need attention and improvement Recruitment & retention Reward advise and support employees on company benefits Policy & procedures implementation of new HR policies Managing HR budgets.

JOB DESCRIPTION OF MECHANICAL ENGINEER


Communicate with management Design standards. Review production schedules, engineering specifications, orders,

and related information to obtain knowledge of manufacturing methods, procedures, and activities. Estimate production costs, cost saving methods, and the effects of product design changes on expenditures for management review, action, and control. Draft and design layout of equipment, materials, and workspace to illustrate maximum efficiency using drafting tools and computer. Confer with clients, vendors, staff, and management personnel regarding purchases, product and production specifications, manufacturing capabilities, or project status.

JOB DESCRIPTION OF TECHNICIAN


Technicians do various types of work

Including running high speed converting and packing equipment, controlling the process from a computer terminal performing preventive maintenance on equipment Expected to get involved, take charge of situations, and confront business related problems.

Payroll
1) Head Office Team

Partners will share the profit equally. e) Manager Finance & Administration (Salary: Rs35,000) f) Manager Sales & Marketing (Salary: Rs35,000 g) Manager (Procurement, Production & Operations) (Salary:Rs35,000) h) 2 Assistant accountants ( 2 x Rs10,000 each) = (Salary Rs20,000) i) 2 Assistant Sales & marketing officers (2 x Rs 10000 each) = (Salary:Rs20,000) j) 1 Communications Officer (Salary: Rs8,000) k) 1 Office Clerk (Salary: Rs7,000) l) 1 Office Boy (Salary: Rs4,000)
Total Salaries & Wages per month:

Rs 1,64,000

2) Plant-Wide Team 1 - General Manager- Plant Operations (3 x Rs9,000 = 2 - Production Controllers (2 x Rs12,000 = 1 - Quality Controller (Rs10,000) 2 - Bio Chemists (2 x Rs10,000 = 1 Lab Technician 1 - Maintenance Officer 5 - Machine Operators ( 4 x Rs4,000 = 5 - Store-men (packing, unloading, loading, storing) (5 x Rs3,000 each = 4 - Security guards (4 x Rs3,000 each = 10 Drivers (10 x Rs3,000 each = TOTAL MONTHLY PAYROLL:

(Rs40,000) Rs27,000) Rs24,000) Rs20,000) (Rs5,000) (Rs4,000) (Rs16,000) Rs15,000)

Rs12,000)
Rs30,000) Rs3,81,000

RECRUITMENT
Recruitment procedure would be as per requirementFor blue collar workers techniques used open advertisement(in the form of newspapers/tv/print media) White collar-local newspaper.

Selection
Selection of technical /managerial staff may be based on Preliminary test Situational test Personality test Physical test Employee referrals Reference and background analysis for blue collar workers hiring on contract basis, subject to requirement

Welfare schemes
Medical policy

Canteen for employees


Leave policy Family insurance

Training and Development


Adequate training has to be given to the employees

of the organization for enhancing their technical skills. Advantages of training Leads to improved profitability Positive attitude Improved job knowledge Improved morale of workforce Helps in cost-cut in areas such as-production ,personnel, administration.

Performance appraisal
Helps the employees and management to know the level of employees performance compared to the standard/predetermined
Appraising employees and skilled workers will only be retained Promotion, transfers, and demotions on basis of performance

Future planningDevelopment of performance management system

INFORMATION TECHNOLOGY

Head Office

- Computers (8) other staff- Rs .120000 - 2 printers- Rs.10000


1 Fax machines Rs. 4000 1 Photocopier Rs. 6000 Radio telephones in all trucks Rs.4000 Land line (4 lines) Rs. 2000

2) Plant wide - 5 computers - 2 printers - 1 fax machine - 1 mobile phones - Radio telephones - Intercom in the plant - land line (3 lines)

Grievance handling procedure


Workers dissatisfaction are dealt through grievance procedure. Causes of grievance may be as Wages and bonus Incentive system Disciplinary discharge or lay-off Inadequacy of safety and health devices/services. Transfer to another department or another shift.

COST AND PROFIT MARGIN


(**variations in price is subject to market change, this is average yearly price**)
PARTICULARS (For 1 ltr) Procurement cost (approx.) Processing cost Packaging and transportation Cost of sales PROFIT SELLING PRICE SKIMMED 20 1 2 TONNED 22 3 2 FULL CREAM 25 3 2

24 4 28

27 7 34

32 7 38

COST OF CAPITAL
FIXED CAPITAL + WORKING CAPITAL = TOTAL COST OF CAPITAL (13.38 + 5.77) = 19.15

FIXED CAPITAL
FIXED ASSETS 2.03 2.72 8.63 INVESTM ENTS

WORKING CAPITAL
0.35 CURRENT INVESTME NTS 1.87 INVENTOR IES

0.25

0.83 1.05 1.42

LONG TERM LOANS & ADVANCE

RECEIVAB LES

GRAPHICAL REPRESENTATION OF DATA;- SALES AND PROFIT FIG. in crore 35 30 25 20 15 10 5 6.21 9.67 11.56 23.44 31.86

16.24
sales net profit

0
2013 2016 2021

PROFIT &LOSS A/c for the year ending 2013,2016,2021


PARTICULARS 2013 16.24 2.20 1.50 20.94 9.43 2.65 1.54 1.06 0.47 0.39 Total expenses Profit before tax Tax expenses Net Profit for the year 15.54 05.40 0.19 6.21 TOTAL INCOME EXPENSES: Cost of materials consumed Purchase of traded goods Employee benefit expenses Depreciation & amortization expense Transportation exp. Other expenses 14.70 2.76 1.87 1.69 1.57 0.64 22.59 08.96 0.29 9.67 17.65 3.61 2.35 1.96 1.35 0.89 27.81 11.91 0.35 11.56

(Rs. In crores) 2016 2021


23.44 4.17 2.94 30.55 31.86 5.10 2.76 39.72

INCOME:
sales Other income Increase/decrease in stocks

Balance sheet of Dairy Shudh as at March 31st, 2013,2016 & 2021


(Rs. In crores) 2021 10 6.97 3.21 2.82 6.75 PARTICULARS A 1 2
EQUITY AND LIABILITIES

2013 10 3.76 1.03 0.87 2.57

2016 10 5.86 1.96 1.60 3.93

(a)Partners capital (b) Reserves & surplus Non current liabilities (a)Other long term liabilities (b)Deferred tax liabilities (c)Long term provisions

Current liabilities

(a)Trade payables (b)Other current liabilities


(c)Short term provisions TOTAL

0.95 0.37
0.53 20.08

1.59 1.84
0.92 27.70

3.71 3.56
0.62 38.64

B 1

ASSETS Non-current assets (a)Fixed assets (i)Tangible assets (ii)Intangible assets (iii)Capital work-in-progress (b)Non current investments (c)Deferred tax assets (d)Long term loans & advances (e) Other non current assets 8.63 4.82 2.73 1.08 2.72 0.52 2.03 1.56 10.63 4.98 3.84 1.81 3.72 1.83 3.17 1.30 12.50 6.58 3.97 1.95 4.93 2.80 4.24 3.89

Current assets (a)Current investment (b)Inventories (c)trade receivables (d)Cash &bank balances (e)Short term loans & advances (f)Other current assets 1.87 1.42 1.05 0.83 0.25 0.35 2.89 2.83 2.94 1.43 0.91 1.32 3.52 2.96 3.83 2.84 2.67 3.72

20.08
TOTAL

27.70

38.64

Possible challenges
Increase in demand

high competition as prices of all companies have

reduced. Reduction in distribution channel, less market reach.

Our new marketing strategy


T y p e o f S t r a t e g y - d i f f e r e n ti at i o n . ( p o r t e r s

model) Mainly in services.


Home Delivery/door to door selling -at no

extra charge.(after the order placed 3 hours in advance) Online Ordering

OUR STRATEGY-

Deliver fresh to your front door just in time for breakfast

Changes done in marketing and promotion


As we are operating in local areas Newspapers and Magazines carries a lot more weight with readers than the advertising.
In contract with local hotels and restaurants for bulk

marketing.
Pamphlets, and business cards (which are less expensive) are

distributed for promotion rather than bill boards and hoardings.

Changes in operation
More Production of 1 ltr packets than 1\2 ltrs. Results in

increase in sales and reduce manufacturing cost.(generally


families require 1 ltr on an avg. convenient for distribution)

Bulk production, of fewer products.(economies of scale) Fuller utilization of resources-man power and raw material. By-products are sold at cheaper cost than processed in

plant.

Marketing

Importance to Sale through our booths and parlor , assurance of right quality at right price . Instead of 3 phase distribution channel 2 phase is adopted
(especially for milk), confined

largely to local markets to reduce

cost.
For other durable products same channel will be followed

change in Salaries and job

description after change in scenario--

I.T DEPARTMENT
1Computer manager-35000

1 sub-manager:-25000
Job description: Planning, coordinating, direct computer-related activities in an organization. Record and carry out all business process in a proper

order. determining information technology goals of an organization and are responsible for implementing the appropriate computer systems to meet those goals.

HR strategy Retention for employees


Proper working environment

Continuous feedback
Suggestion/complaint box Proper training facilities

Performance appraisal for continuous evaluation


Motivating employees Recreational activities to reduce boredom

REVISED COST SHEET


PARTICULARS Direct expenses Direct labour
PRIME COST CPU (PREVIOUS) in Rs. CPU (REVISED) In Rs.

6 .5 6.5

6 .4 6.4

FACTORY OVERHEADS: FIXED: Depreciation Rent Power Insurance Supervisors salary VARIABLE: Electricity Running exp. Of machines WORK COST .4 .4 9.7 .4 .4 9.4 .5 .5 .7 .3 .4 .5 .5 .7 .3 .2

particulars

previous

revised

OFFICE OVERHEADS: Employee cost Computer Telephone Taxes Carriage outward COST OF PRODUCTION opening stock -closing stock 3.4 0.12 0.11 0.20 0.30 13.83 0.40 0.30 3 0.12 0.11 0.18 0.40 13.29 0.30 0.30

COST OF GOODS SOLD

14.53

14.89

SELLING & DISTRIBUTION EXPENSES: Advertisements Delivery vehicles 1.8 1.2 1.6 1.4

Petrol
Packaging rates COST OF SALES PROFIT SALES

0.8
0.2 18.53 5.47 24

1
0.2 18.09 3.91 22

Our Strategy:
Differentiation In Technology, Equipment & Services

Scenario of low sales and high competition


Tie-ups with airlines and restaurants for delivery of

powder milk. Extensive promotion and advertising Introduction of milk based energy drinks and energy powder for children. Low product prices. By reducing cost through economies of scale

Strategies
Better handling of raw milk through clarification and

bactofugation
Milk processing through maintaining good operational ratios
(reduction in wastage, protein losses during processing, control production costs, save energy and broaden shelf life)

Increasing the range of advanced packing machines for the

manufacture of butter, cheese and alike


Introduction of a cold chain distribution system

Strategies contd.
Value added products
(desserts, puddings, custards, sauces, mousse, stirred yoghurt, nectars and sherbets)

Entering into foreign market (New Zealand)


(Pudding, Ice creams, butter & cheese)

Focusing on rural market


(Small packets, easy to use pouches and selling by-product at cheaper rates)

Special offers
(on every 1 ltr. Packet of milk 100 gm dry milk powder free)

Modification in HR strategies as per scenario


Lay-off of unproductive labour.
Hiring highly skill labour/ manager and

technicians. Organizing weekly management-worker meeting for identifying loop-holes and finding best possible solution.