SUMMER TRAINING PROJECT REPORT ON “PREPARE A PROPOSAL FOR THE ENHANCEMENT OF THE PRODUCT & PERFORMANCE OF MILK RETAILERS”
Name
:
ENR
:
COURSE
: PGDMM
TITLE
: “ TO PREPARE A PROPOSAL FOR THE ENHANCEMENT OF PRODUCT. & PERFORMANCE OF MILK RETAILERS”
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PREFACE The development makes the knowledge of employees obsolete so every concern has to arrange some kind of training for preparing worker for job and keeping them acquainted with advancement. For getting the right results from the candidate providing the various training programmes is must for the Organization. These Training Programmes helps the employees to work better in their related fields and helps them to achieve their goals by making them expertise in their related work fields. The purpose of providing the training programmes is also to explain the basic policies of workings of the organization so that the employees must work according to the policies of the organization for achieving the best results i.e. for achieving the goals of the organization. Management in India is heading towards a better profession as compared to other professions. The demand for professional managers is increasing day by day. To achieve profession competence, manager ought to be fully occupied with theory and practical exposure of management. During the curriculum of management programmes a student has to attain a practical exposure of an organization on live project in addition to theory he/she studies. This report is about the practical training done at ‘MAGADH DIARY PROJECT (SUDHA) GAYA during the curriculum of PGDMM ,from IIMT, Greater Noida. The whole text is divided into following main parts: Introduction of training, objectives of the study, methodology, literature review, about company, management hierarchy, government policy, comparison with other business company, tax aspects, company assignments, data analysis and finally conclusion with suggestion and recommendations to the company.
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ACKNOWLEDGEMENT
No research can blossom from single person’s mind without proper guidance, assistance and inspiration from various quarters. My project was given its present shape by assistance of many people whom I am greatly indebted to. I express my gratitude and indebtedness toward the people who helped me during my project work. This project report is a result of endless effort & immense degree of oil by many great minds. It was pleasure to work in one of the most valuable F.M.C.G Company like MAGADH DIARY PROJECT (SUDHA) I express my humble gratitude towards Mr XYZ Chief executive of MAGADH DIARY PROJECT (SUDHA. Gaya who treat me as a guide depot for giving me a chance to pursue my summer training in a prestigious company. I am also thankful to XYZ (MANAGEMENT REPRESENTATIVE) for providing me proper inputs and guidance. I would like to dedicate this work to my revered institute IIMT, Greater Noida where I am getting the shape of future business manager. I express my sincere gratitude to Dr. XYZ., Greater Noida for their support and guidance on the ground of which I have acquired a new field of knowledge. Lastly, I express my gratitude to my parents who financed this project and have been a moral support to me during this project.
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DECLARATION I hereby declare that the project work entitled “MAKE A PROPOSAL FOR THE ENHANCEMENT OF THE PRODUCT & PERFORMANCE OF MILK RETELERS” is an authentic work carried out by me at COMPFED. under worthy and esteemed guidance of Mr. P. MUDGAL. This work has not been submitted to any other university for Award of any Degree/Diploma and is the whole sole property ofXYZ INSTITUTE OF MANAGEMENT AND TECHNOLOGY, GREATER NOIDA. Any unauthorized used of this Project is strictly prohibited. For further use, approval of the concerned authority is mandatory.
DATE: XYZ
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TABLE OF CONTENT TITLE PAGE
01
INTRODUCTORY PAGES (1) PREFACE
03
(2) CERTIFICATE (3) ACKNOWLEDGEMENT
04
(4) DECLARATION
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(5) EXECUTIVE SUMMARY
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LITERATURE REVIEW 1.
COMPANY PROFILE:
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(1) NAME OF THE COMPANY (2) HEAD OFFICE (3) BRANCH OFFICE (4) HISTORICAL BACKGROUND (5) VISSION AND MISSION STATEMENT 2.
TRADE PROFILE:
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MAIN BUSINESS
48
3.
COMPETITORS
84
4.
PROMOTERS AND BACKGROUND
108
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5.
VENDORS/SUPPLIERS ANALYSIS
116
6.
DEMAND – SUPPLY ANALYSIS
119
7.
R & D ACTIVITIES
123
8.
KEY STAFF
128
(1) MANAGERIAL HIERARCHY
139
(2) DUTY & RESPONSIBILITY OF KEY STAFF
143
9.
HR POLICIES
144
10.
MARKETING POLICIES
153
11.
ATTRACTIVE FEATURES
166
12.
SUDHA’S SECREAT OF SUCCESS
180
13.
GOVERNMENT POLICIES
185
14.
JOB PROFILE/ASSIGNMENT PROFILE
190
15.
FINDINGS & LIMITATIONS
215
16.
SUGGESTIONS/RECOMMENDATIONS
218
17.
LEARNING WHILE EARNING
223
18.
OUR ACHIEVEMENTS
224
19.
CASE STUDY
225
20.
CONCLUSION
226
21.
WORDS OF THANKS
228
22.
BIBLIOGRAPHY
229
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EXECUTIVE SUMMARY The project is regarding, “To prepare aproposal for the enhancement of the product & Performance report of milk retailers ” which would enable the company to expend the market of the product of SUDHA and with hold the good position among the competitors. SUDHA. ltd. is largest food production marketing organization. It is a state level body of milk co-operatives in BIHAR & JHARKHAND which aims to provide remunerative returns to the farmers and also to serve the interest of customers by providing quality products. It is known as a brand SUDHA. The company started from the late 60’s and the milk union started its first day with just 247 liters of milk. Basically COMPFED. is a farmer’s co- operative in India. SUDHA is the flag ship brand ofCOMPFED. which becomes one of the best recognized brand names in India. “Bihar state Co-Operative Milk Producers Federation Limited”Magadh diary project gaya diary gaya sudha (COMPFED), the largest food company inBihar & Jharkhand , recorded a turnover of Rs 2882 crore ($ 0.65 bn) in 2003-04. Its flagship brand 'Sudha' was the market leader in milk, whole milk, cheese, ice cream and dairy whitener. COMPFED was the largest cooperative movement in Bihar & Jharkhand with 2.2 million milk producers of bihar & Jharkhand organized in 10,552 cooperative societies. COMPFED collected 5 million liters of milk per day from its shareholders who owned 3.2 million buffaloes, one million cows and 0.3 million crossbred cows. The Federation's extensive marketing network comprised 3000 distributors and 500,000 retailers spread across the country.
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Dr. V. KURIEN whose life long effort & contribution has made Sudha no.1 in the whole Bihar & Jharkhand. Indian people feel homely and comfortable with every products of Sudha. All these products are distributed by it determine network of 3000 distributors and 500000 retailers. In India Sudha have 50 offices and few at abroad to handle the operation effectively. In the project the emphasis was given to increase the total sale of distributors and retailers. Visit to the different retailers in the Bihar & Jharkhand, was to increase the retail boundaries of Sudha product and to know the problem regarding Sudha product, to know whether there is any delivery problem by distributor, to know that whether the sales man of distributor is regularly visiting the retailers in targeted areas, to check the supply of ordered goods are on time and finally to look on the retailers problem while selling the Sudha product. Sudha product is very popular among the customer and the sale of the product of sudha is not very good in Bihar & Jharkhand. Through my project the problem is short listed i.e. lack of supply of Sudha product on time by Sudha distributors and very good scheme were provided from revelries companies. According to me the Bihar State Co-Operative Milk Producers Federation Ltd (COMPFED). would have to take extra ordinary effort to capture the market share of Sudha Product.
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LITERATURE REVIEW This is a pure applied part of my two month, summer training. It has been purely a practical exposure to real business in general and of Marketing in particular. Through the entire tenure of summer training have learned the practical implication of business. I must say that after completing one year of my studies was quite familiar with the business environment, but through this practical exposure that is summer training in Sudha which enable me to get an in depth sight of the reality show of the business. Here in the COMPFED., I came to know the real technique of marketing and what is the real picture of marketing in the corporate world. Firstly, I had to do a hard core marketing of Product of Sudha with regard to kwality wall’s and Mother dairy and others. Further I had to chooser a methodology which is best suitable for Sudha’s market in. Gaya region. In this hard core selling we have to impress the distributors and retailers to purchase the deep freezer available with schemes just to increase the market share of the product of Sudha. Through which I could achieve the market share which was Approved by my guide K.K.SHARMA. Though Sudha is the choice of consumers but retailers are not satisfied with the company as they don’t provide any attractive schemes and replacement policy and if they provide any such type of scheme it had many demerits like in our scheme installment facility was not provided. Sudha has a good reputation in the market.
On the basis of the observation and
conclusion during the visits to retailers and distributors in Gaya, the suggestion and recommendation are forwarded to the company. While making the report almost care is taken though make no mistake but error is human and to forgive is gaudiness.
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For this I had to visit the distributor and retailers of Gaya to tell them about the new scheme launched by the Sudha.
Though Sudha is the choice of consumers but retailers are not satisfied with the company as they don’t provide any attractive schemes and replacement policy is very poor but the company like any other. Sudha has a good reputation in the market.
On the basis of the observation and
conclusion during the visits to retailers and distributors in Gaya, the suggestion and recommendation are forwarded to the company. While making the report almost care is taken though make no mistake but error is human and to forgive is gaudiness
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CHAPTER-1
NAME OF THE COMPANY
BIHAR STATE COOPERATIVE MILK PRODUCERS FEDERATION FEDERATION LTD (COMPFED) SUDHA
HEAD OFFICE • • •
Repair and Maintenence of Milk Plant and Accessories Repair & Maintenence of Office Equipement Civil Work Contractor
CONTACT US Head Office: Bihar State Cooperative Milk Producers' Federation Ltd. Dairy Development Complex PO-B.V. College PATNA - 800 0014 BIHAR, INDIA
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CHAIRMAN: SRI ANIL KUMAR, IAS MANAGING DIRECTOR: SRI ATISH CHANDRA, IAS PHONE: CHAIRMAN: +91-612-2226543 MANAGING DIRECTOR: +91-612-2227451 EPABX: +91-612-2228953,2224083, 2228347, 2220387 PRODUCT MARKETING CELL: +91-612-2222126 FAX: +91-612-2228306 E-MAIL: COMPFED@sify.com Website: www.COMPFED.co.in
Name and Address of Milk Unions Dr. S.B.Sinha Acting Managing Director VP Milk Union Feeder Balancing Dairy Complex PO-Phulwarisharif Patna – 801505 Tel: 0612-2252542,2252553 2251154 Fax:0612-2250325 Mobile:9835024086
Sri A.K. Sinha
Managing Director Mithila Dugdh Utpadak Sahkari Sangh Ltd. Samastipur Dairy Industrial Area PO-Harpur Alowth Samastipur-848101 Tel:06274-223680,222172 Fax:06274-223680 Mobile:9431245965 Dr. S.N.Bora Managing Director Tihut Dugdh Utpadak Sahkari Sangh Ltd. Muzaffarpur Dairy PO-Koluapaigambarpur Muzaffarpur-843108 Tel:0621-2265549,2235087 Mobile:9431238834
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Dr. D.N.Singh Acting Managing Director Deshratna Dr. Rajendra Prasad Dugdh Utpadak Sahkari Sangh Ltd. Barauni Dairy Barauni-851112 Tel:06279-232888,232903,232202 Mobile:9431211430
Sri Manoj Pandey Managing Director Shahabad Dugdh Utpadak Sahkari Sangh Ltd. Arrah Dairy Katira, Arrah-802301 Tel:06182-239484,236694 Fax:06182-239484 Mobile : 9431053803
Name and Address of Dairy Plants Sri A.K. Kulkarni Chief Manager Jamshedpur Dairy PO-Gamharia Jamshedpur – 832108 Tel:0657-2408438,2408907,2201530, 2380845 Fax:0657-2408907 Mobile:9835107911
Sri Milton Manager Ranchi Dairy Liquid Milk Plant H.E.C. Sector – II Dhurwa, Ranchi-834004 Tel:0651-2440832,2440723 Fax:0651-2440832 Mobile:9835365011
Sri S.K. Dutta Chief Executive Bokaro Dairy Sector 12/F
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Bokaro Steel City Bokaro – 827012 Tel:06542-257098,256488 Fax:06542-256488 Mobile : 9431128570
Sri P.K. Verma Chief Executive Bhagalpur Dairy (Near D.M.Kothi) Mayaganj Road Bhagalpur-812001 Tel:0641-2400433,2404769 Fax:0641-2400433 Mobile:9431213904 Sri K.K.Sharma Chief Executive Gaya Dairy Katari Hill Road PO-Karimganj Gaya-823001 Tel:0631-2425900,2421741 Fax:0631-2427121 Mobile:9334734630
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HISTORICAL BACKGROUND OF COMPFED In order to establish dairy industry on SUDHA pattern by involving farmers in organizing the milk production, and procurement processing and marketing of nearly produced milk, Bihar state co-operative milk producers federation Ltd (COMPFED) was registered in the state in April 1983. It is implementing operation Flood program in Bihar now Operation flood is the dairy development policy which selects to promote SUDHA pattern in other part of India and outside of India. Operation flood (OF) was the result of organized attempt towards the development of the dairy industry in India. The operation flood program has laid emphases on setting of “SUDHA pattern� for rural milk produces cooperative orgnisation to produce process and market technical input services for increasing milk production FACTS ABOUT OPERATION FLOOD Operation flood first---------1970-1981 Operation flood second-----1981-1985 Operation flood third--------1985-1996 HISTORY OF MAGADH DAIRY PROJECT GAYA DAIRY GAYA In order to establish cooperative dairy on SUDHA pattern towards fulfillment of the national ob
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Sudha: The origin The mighty Ganges at its origin is but a tiny stream in the Gadgetry ranges of the Himalayas. Similar is the story of Sudha which inspired 'Operation Flood' and heralded the 'White Revolution' in India. Father of white revolution is Dr. vargis kurian (1973) It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Sudha collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Sudha became the symbol of the aspirations of millions of farmers. Creating a pattern of liberation and self-reliance for every farmer to follow. The start of a revolution: The revolution started as awareness among the farmers that grew and matured into a protest movement and the determination to liberate themselves. Over four decades ago, the life of a farmer in Kaira District was very much like that of his counterpart anywhere else in India. Its income was derived almost entirely from seasonal crops. The income from milk buffaloes was undependable. The marketing and distribution system for the milk was controlled by private traders and middlemen. As milk is perishable, farmers were compelled to sell it for whatever they were offered. Often, they had to sell cream and ghee at throwaway prices. In this situation, the one who gained was the private trader. Gradually, the realization dawned on the farmers that the exploitation by the trader could be checked only if marketed their milk themselves. In order to do that they needed to form some sort of an organization. This realization is what led to the establishment of the Bihar state Cooperative Milk Producers' federation Limited (popularly known as Sudha) which was formally registered on December 14, 1946. The Kaira Union began pasteurizing milk for the Bombay Milk Scheme in June 1948. An assured market proved a great incentive to the milk producers of the district. By the end
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of 1948, more than 400 farmers joined in more village societies, and the quantity of milk handled by one Union increased from 250 to 5,000 liters a day. Obstacles: Each failure, each obstacle, each stumbling block can be turned into a success story. In the early years, Sudha had to face a number of problems. With every problem came opportunity. A chance to turn a negative into a positive. Milk by products and supplementary yield which suffered from the same lack of marketing and distribution facilities became encumbrances. Instead of being bogged down by their fate they were used as stepping stones for expansion. Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. Milk by products : The response to these provided stimulus for further growth. For example, as the movement spread in the district, it was found that the Bombay Milk Scheme could not absorb the extra milk collected by the Kaira Union in winter, when the production on an average was 2.5 times more than in summer. Thus, even by 1953, the farmer-members had no assured market for the extra milk produced in winter. They were again forced to sell a large surplus at low rates to the middlemen. The remedy was to set up a plant to process milk into products like butter and milk powder. A Rs 5 million plant to manufacture milk powder and butter was completed in 1955. In 1958, the factory was expanded to manufacture sweetened condensed milk. Two years later, a new wing was added for the manufacture of 2500 tons of roller-dried baby food and 600 tons of cheese per year, the former based on a formula developed with the assistance of Central Food Technological Research Institute (CFTRI), Mysore. It was the first time anywhere in the world that cheese or baby food was made from buffalo milk on a large, commercial scale.
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Another milestone was the completion of a project to manufacture balanced cattle feed. The plant was donated by OXFAM under the Freedom from under Campaign of the FAO. To meet the requirement of milk powder for the Defense, the Kaira neon was asked by the Government of India in 1963 to setup additional milk raying capacity. A new dairy capable of producing 40 tons of milk powder and 20 tons of butter a day was speedily completed. It was declared open in 1965. The Mogar Complex where high protein weaning food, chocolate and malted food are being made was another initiative by Sudha to ensure that while it fulfilled the social responsibility to meet the demand for liquid milk, its members were not deprived of the benefits to be had from the sale of high valueadded products. Cattle: From stumbling blocks to building blocks. However, the contribution to the farmer's income was not as prominent as his attachment to dairying as a tradition handed down from one generation to the next. The milk yield from animals, which maintained mainly on the by products of the farm, was decidedly low. That together with the lack of facilities to market even the little produced rendered the scientific practice of animal husbandry irrational as well as unaffordable. The return on the investment as well as the prospects of being able to market The product looked very bleak. It was a vicious cycle reinforced by Generations of beliefs. The Kara Union broke the cycle by not only taking upon themselves the responsibility of collecting the marketable surplus of milk but also provided the members with every provision needed to enhance production. Thus the Kara Union has full-fledged machinery geared to provide animal health care and breeding facilities. As early as late fifties, the Union started making high Quality buffalo semen. Through village society workers artificial semi nation service was made available to the
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rural animal population. The Union started its mobile veterinary services to render animal health care at the farmers' doorstep. Probably for the first time in the country, veterinary first aid services, by trained personnel, were made available in the villages. The Union's 16 mobile veterinary dispensaries are manned by fully qualified staff. All the villages are visited bi-monthly, on a predetermined day, to provide animal health care. A 24-hour Emergency Service is also available at a fee (Rs. 35 for members and Rs. 100 for nonmembers). The Union runs a semen production center where it maintains high pedigreed Surti buffalo bulls, Holstein Friesian bulls, Jersey bulls and 50 % crossbred bulls. The semen obtained from these bulls is used for artificial breeding of buffaloes and cows belonging to the farmer members of the district. The artificial insemination service has become very popular because it regulates the frequency of calving in cows and buffaloes thus reducing their dry period. Not only that, a balanced feed concentrate is manufactured in the Union's Cattle Feed Plant and sold to the members through the societies at cost price. Impressive though its growth, the unique feature of the Sudha sagas did not lie in the extensive use of modern technology, nor the range of its products, not even the rapid inroads it made into the market for dairy products. The essence of the Sudha story lies in the breakthrough it achieved in modernizing the subsistence economy of a sector by organizing the rural producers in the areas. The Kaira experiment: A system which involves participation of people on such a large magnitude does not confine itself to an isolated sector. The ripples of its turbulence affect other areas of the society as well. The cooperatives in the villages of Kaira are contributing to various desirable social changes such as: The yearly elections of the management committee and its chairman, by the members, are making the participants aware of their rights and educating them about the democratic process.
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Perpetuating the voluntary mix of the various ethnic and social groups twice-a-day for common causes and mutual betterment has resulted in eroding many social disequilibria. The rich and the poor, the elite and the ordinary come together to cooperate for a common cause. Live exposure to various modern technologies and their application in day-to-day life has not only made them aware of these developments but also made it easier for them to adopt these very processes for their own betterment. One might wonder whether the farmer who knows almost everything about impregnating a cow or buffalo, is also equally aware of the process in the humans and works towards planning it. More than 900 village cooperatives have created jobs for nearly 5000 peoplein their own villages without disturbing the socio-agro-system and thereby the exodus from the rural areas has been arrested to a great extent. The income from milk has contributed to their household economy. Besides, women, who are the major participants, now have a say in the home economy. Independent studies by various individuals and institutions have shown that as high as 48 per cent of the income of the rural household in Kaira District is being derived from dairying. Since dairying is a subsidiary occupation for the majority of the rural population, this income is helping these people not only to liberate themselves from the stronghold of poverty but also to elevate their social status. The credit for taking India to the top of the International dairy sector goes to the millions of small dairy farmers dispersed across the country. To locate each one on a map is a monumental task. Therefore milk production according to area is shown on this map. High (above 150g/day) Medium (150-100g/day) Low (Below 100g/day)
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Operation Flood A recent World Bank audit shows that of the Rs 200 crores it invested in Operation Flood II, the net return into the rural economy has been a whopping Rs 24,000 crores per year over a period of ten years, or a total of Rs 240,000 crores in all. No other major development program has matched this input-output ratio. Operation Flood, launched in 1970, has been instrumental in helping the farmers mould their own development. Thus helping reach milk to consumers in 700 towns and cities through a National Milk Grid. It also helped eradicate the need for middlemen thereby reducing the seasonal price variations. As a result of the cooperative structure the whole exercise of production and distribution of milk and milk products has become economically viable for farmers to undertake on their own. In this manner the farmer himself can enjoy the fruits of his own labor, instead of surrendering a majority of the profit to corrupt middlemen. Three Phases of development The scheme sought to establish milk producers' cooperatives in the villages and make modern technology available to them. The broad objectives are to increase milk production (a flood of milk), augment rural incomes and transfer to milk producers the profits of milk marketing which are hitherto enjoyed by well-to-do-middlemen. Phase I of Operation Flood was financed by the sale within India of skimmed milk powder and butter oil gifted by the EC countries via the World Food Program. As founder-chairman of the National Dairy Development Board (NDDB) of India, Dr Kurien finalized the plans and negotiated the details of EEC assistance. He looked after the administration of the scheme as founder-chairman of the erstwhile Indian Dairy Corporation, the project authority for Operation Flood. During its first phase, the project aimed at linking India's 18 best milk sheds with the milk markets of the four metropolitan cities of Delhi, Mumbai, Calcutta and Madras.
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Phase II of the project, implemented during 1981-85 raised this to some 136 milk sheds linked to over 290 urban markets. The seed capital rose from the sale of WFP/EEC gift products and World Bank loan had created, by end 1985, a self-sustaining system of 43,000 village cooperatives covering 4.25 million milk producers. Milk powder production went up from 22,000 tones in the pre project year to 1, 40,000 tones in 1989, thanks to dairies set up under Operation Flood. The EEC gifts thus helped to promote self-reliance. Direct marketing of milk by producers cooperatives resulting in the transfer of profits from milk contracts increased by several million liters per day. Phase III of Operation Flood (1985-1996) enabled dairy cooperatives to rapidly build up the basic infrastructure required to procure and market more and more milk daily. Facilities were created by the cooperatives to provide better veterinary first-aid health care services to their producer members. The story of Operation Flood can be seen through three angles. One is to consider what it did to the dairy industry. Another point of view is from the eyes of the small farmer. It has revolutionized their way of life. Operation Flood has also established a pattern of success for other countries to follow. The Anand Pattern The milk cooperatives under Operation Flood follow the Anand Pattern, which was pioneered by Dr Kurien when he was General Manager of the Kaira District Cooperative Milk Producers' Union Limited, Anand. The success of the operation demonstrated that democratic institutions in villages within a specific economic sector could help an entire village community to develop themselves. Dr Kurien nurtured the Union from a daily collection of 500 liters a day in 1948 to one million liters a day in early 1990. He helped set up similar District Cooperative Unions in six other districts of Gujarat which eventually federated to an apex body, the Gujarat Cooperative Milk Marketing Federation Limited. An establishment which Dr Kurien now heads as Chairman. The Federation covers more than 1.5 million milk douser families. The Anand Model is essentially an economic organizational pattern to benefit small producers who join hands forming an integrated approach in order to handle their produce. The system enables them to obtain the efficiency and economy of a large scale business. The whole operation is
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professionally managed so that the individual producers have the freedom to decide their own policies. The adoption of modern production and marketing techniques help in providing those services those small producers individually can neither afford nor manage. The Anand Model has succeeded largely because it involves people in their own development and because their interests are safe in their own hands. Under Operation Flood the entire institutional infrastructure set up at the village level, the district level and the state level is owned and operated by the farmers themselves. The Anand model cooperatives have progressively eliminated middlemen, bringing the producers in direct contact with consumers. In spite of opposition to these projects by middlemen and other powerful vested interests, Dr Kurien has been able to make major breakthroughs in the dairy and oilseeds sectors supported by the highest level in the Government of India.
Food Authority clears Sudha on quality Sudha received a clean chit from FDCA Laboratory on quality of the butter and its powder products, but the charges of printing wrong dates on butter packages remains. The controversy over the seizure of 26,000 tones of Sudha butter from its Patna diary project factory by Food and Drug Control Administration, FDCA, Gaya region, is far from over. Though Sudha received a clean chit from FDCA laboratory on quality of the butter and its powder products, the charges of printing wrong dates on butter packages remains. While Sudha has been cleared of all the quality concerns, FDCA is expected to take a final call on further action against Sudha authorities for 'misbranding' by the next weekend. FDCA had in late January this year, confiscated over 26,000 tones of Sudha butter when it found packaging material with manufacturing dates of February and March 2007, during its visit to Sudha premises.
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The FDCA booked Sudha under Prevention of Food Adulteration Act. When contacted by CNBC-TV18, both, FDCA and the Sudha authorities, refused to comment on the issue at this stage. The Sudha twist Mr. Shukla, General Manager (Marketing), Magadh diary project Gaya Bihar, in conversation with Mr. Santosh sinha explains Sudha’s retailing plans and expansion strategies. The Bihar State Co-operative milk producers federation limited (COMPFED) has achieved 18 per cent growth during 2005-06 to close the year with a Rs 2,882 crore turnover, so it has been an enthusiastic year for Sudha. The March closing was exceptionally good as an overall growth was witnessed across all our dairy products. What percentage of this growth would you attribute to business garnered from the organized retail segment in India? As far as COMPFED is concerned, the contribution from the organized retail segment would be negligible, say about 2-3 per cent. Except for a few cities like PATNA and RANCHI, the actual penetration of the organized retail segment is not really significant in other parts of India. These outlets would not fall in the organized segment but rather in the traditional unorganized one. Portfolio would be enhanced if these new products are present in organized retail formats. More than 900 village cooperatives have created jobs for nearly 5000 people in their own villages -- without disturbing the socio-agro-system and thereby the exodus from the rural areas has been arrested to a great extent. The income from milk has contributed to their household economy. Besides, women, who are the major participants, now have a say in the home economy. Independent studies by various individuals and institutions have shown thatas high as 48 per cent of the income of the rural household in Kaira District is being derived from dairying. Since dairying is a subsidairy occupation for the majority of the rural population, this income is helping these people not only to liberate themselves from the stronghold of poverty but also to elevate their social status
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Sudha has developed wide marketing network to increase its sell in the market. Sudha is providing quality products to its customers and has gained very good faith and is appraised very much by the consumers for its good quality products. Though there are many types of products in the market, this Gaya Dairy is mainly processes milk. Sometimes according to the need/demand curd, lassi, misthi dahi, and paneer are also processed. To sell its products, the firm has divided the whole Gaya district in two zonesA) North Gaya zone & B) South Gaya zone. There are different distributors in these zones. Through these distributors product is transferred to the 200 retailers and different 47 Sudha outlets and also some other shops. They provide directly to costumer if they given a special order to marketing section. They will take a advance order if any function is happening in future. Function like marriage, govt meeting, fair, or any party occasion Funds for outlet are provided from district administration. Milk is supplying in some dist as jehanabad, aara,rangabad, and some part of nawada. Per month net profit is 3-4 lakhs. As a marketing point of view they will conduct a market survey in a interval of every two month .as that they will conduct survey in different zone in every month’s of survey. Survey regarding to its new product development, availability of product, price suitability, improvement in product, customer satisfaction, interest of costumer in a particular product in a particular zone. Due to this they have a com-lined department they will receive complain from customer after that they will consult directly to customer area from which they are belong, they will conduct a special survey on that particular area. Or they will communicate by phone. If customer have a problem regarding to supply of bad milk, then organisation will consult to that outlet or particular retailer. In a short way any how sudha dairy wants to his customer satisfaction, in a marketing point of view this is a excellent marketing strategic plan. Because of this sudha dairy has monopoly in market. on the basis of market it has two seasons.
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1st one is on season that means highly milk demanded season, because off
marriage
time. The period of this season is April to June month and November to January month. In this time production of milk is about 40,000 to 60,000 litres per day, which is against the production capacity of Gaya dairy. Production capacity of milk in Gaya dairy in approx 25,000 litre per day. 2nd one is off season that means regular milk demanded time. In this milk production is approx 20,000 to 25,000 litre every day. During the time of season they are facing scarcity of milk; because of this as time to time they are using milk powder for balancing the demand and supply in market .I think this is good marketing technique. I hope sudha dairy will maintain his monopoly in future also.
The White Revolution Milk production in India increased from 17 million tons in 1950-51 to 84.6 million tons in 2001-02 and is expected to reach 88 million tons during 2002-03 (GOI, 2003). Therefore, from being a recipient of massive material support from the World Food Program and European Community in the 1960s, India has rapidly positioned itself as the world's largest producer of milk. Milk production in India during the last five decades is shown in Figure 2.1 and Tables 2.1 and 2.2. Milk production in the country was stagnant during the 1950s and 1960s, and annual production growth was negative in many years. The annual compound growth rate in milk production during the first decade after independence was about 1.64 percent; during the 1960s, this growth rate declined to 1.15 percent. During the late 1960s, the Government of India initiated major policy changes in the dairy sector to achieve self-sufficiency in milk production. Producing milk in rural areas through producer cooperatives and moving processed milk to urban demand centers became the cornerstone of government dairy development policy. This policy initiative gave a boost to dairy development and initiated the process of establishing the muchneeded linkages between rural producers and urban consumers
The White Revolution consisted of 19 elements that were introduced over a period of 15 years, with the first 6 introduced in 1963 and put to a national referendum on January 26, 1963. 1. Land Reforms Program and Abolishing "Feudalism":
27
The government bought the land from the feudal land lords at a fair price and sold it to the peasants at 30% below the market value, with the loan being payable over 25 years at very low interest rates. This made it possible for 1.5 million peasant families, who had once been little more than slaves, to own the lands that they had been cultivating all their lives. Given that average size of a peasant family was 5, land reforms program brought freedom to approximately 9 million people, or 40% of Iran's population. 2. Nationalization of Forests and Pasturelands: Introduced many measures, not only to protect the national resources and stop the destruction of forests and pasturelands, but also to further develop and cultivate them. More than 9 million trees were planted in 26 regions, creating 70,000 acres (280 km²) of "green belts" around cities and on the borders of the major highways. 3. Privatization of the Government Owned Enterprises, It is manufacturing plants and factories by selling their shares to the public and the old feudal lords, thus creating a whole new class of factory owners who could now help to industrialize the country.
4. Profit Sharing Profit sharing for industrial workers in private sector enterprises, giving the factory workers and employees 20% share of the net profits of the places where they worked and securing bonuses based on higher productivity or reductions in costs. 5. Extending the Right to Vote to Women, Extending the right to vote to women, who had no voice and were suppressed by Islamic traditions. This measure was widely criticized by the clergy. 6. Formation of the Literacy Corps, Formation of the literacy corps so that those who had a high school diploma and were required to serve their country as soldiers could do so in fighting illiteracy in the villages. In 1963 aprox. 2/3 of the population was illiterate, with 1/3 found mainly in the capital city of Tehran. 7. Formation of the Health Corps
28
Formation of health corps to extend public health care throughout the villages and rural regions of Iran. In 3 years, almost 4,500 medical groups were trained; nearly 10 million cases were treated by the Corps. 8. Formation of the Reconstruction and Development Corps Formation of the reconstruction and development corps to teach the villagers the modern methods and techniques of farming and keeping livestock. Agricultural production between 1964 and 1970 increased by 80% in tonnage and 67% in value. 9. Formation of the Houses of Equity Formation of the houses of equity where 5 village elders would be elected by the villagers, for a period of 3 years, to act as arbitrators in order to help settle minor offences and disputes. By 1977 there were 10,358 Houses of Equity serving over 10 million people living in over 19,000 villages across the country. 10. Nationalization of all Water Resources, Nationalization of all water resources introduction of projects and policies in order to conserve and benefit from Iran's limited water resources. Many dams were constructed and five more were under construction in 1978. It was as a result of these measures that the area of land under irrigation increased from 2 million acres (8,000 km²), in 1968, to 5.6 million in 1977.
11. Urban and Rural Modernization and Reconstruction Urban and rural modernization and reconstruction with the help of the Reconstruction and Development Corps. Building of public baths, schools and libraries; installing water pumps and power generators for running water and electricity. 12. Didactic Reforms Didactic reforms that improved the quality of education by diversifying the curriculum in order to adapt to the necessities of life in the modern world. 13. Workers' Right to Own Shares in the Industrial Complexes Workers right to own shares in the industrial complex where they worked by turning Industrial units, with 5 years history and over, into public companies, where up to 99% of the shares in the state-owned enterprises and 49% of the
29
shares of the private companies would be offered for sale to the workers of the establishment at first and then to the general public. 14. Price Stabilization Price stablization and campaign against unreasonable profiteering (1975). Owners of factories and large chain stores were heavily fined, with some being imprisoned and other's licenses being revoked. Sanctions were imposed on multinational foreign companies and tons of merchandise stored for speculative purposes were confiscated and sold to consumers at fixed prices. 15. Free and Compulsory Education Free and compulsory education and a daily free meal for all children from kindergarten to 14 years of age. In 1978, 25% of Iranians were enrolled in public schools alone. In that same year there were 185,000 students of both sexes studying in Iran's universities. In addition to the above there were over 100,000 students pursuing their studies abroad, of which 50,000 were enrolled in colleges and universities in the United States. 16. Free Food for Needy Mothers Free food for needy mothers and for all newborn babies up to the age of two. 17. Introduction of Social Security and National Insurance Introduction of social security and national insurance for all Iranians. National Insurance system provided for up to 100% of the wages during retirement.
18. Stable and Reasonable Cost of Renting or Buying of Residential Properties (1977). Stable and reasonable cost of renting or buying of residential properties (1977) Controls were placed on land prices and various forms of land speculation. 19. Introduction of Measures to Fight against Corruption Introduction of measures to flight against corruption within the bureaucracy. Imperial Inspection Commission was founded, consisting of representatives from administrative bodies and people of proven integrity.
30
Milk production and consumption trends in India: 1950-51 to 2001-02
ORGANISATIONAL STRUCTURE COMFED CHAIRMAN(IAS) MD(MANAGING DIRECTOR)
31
(IAS) GM(GENERAL MANAGER)
ASSISTANT MANAGER
MANAGER
DEPUTY ASSISTANT MANAGER
DEPUTY MANGER
ASSISTANT MANAGER
TECHNICAL OFFICER MILK PROCUREMENT OFFICER FODDER DEVELOPMENT OFFICER
EXECUTIVE MANAGER (HEAD OF BRANCH DAIRY)
PROCESSING
MARKETING
EMPLOYEE OUTLETS
GAYA DAIRY ORGANIGATOIN STRUCTURE
32
K.K. SINHA (EXCUTIVE. OFFICER) A.K PANDEY (MANAGEMENT REPRESENTATIVE/ FINANCE DEPARTMENT)
SANTOSH KUMAR(MARKETING DEP.) J. RAI( MARKETING ASST) NITISH GOSHWAMI(JR. MARKETING OFFICER)
JOB ON CONTRACT: BRAJ BHUSHAN KR. NIRALA(COMPUTER IN CHARGE) RAJU(COMPUTER OPERATOR) SUDAM (SERVICE BOY)
33
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 products in the world. The dairy sector has developed
milk
through co-operatives in
many parts of the State. the State had 73 milk processing plants with an aggregate processing capacity of 7.2 millionlitres per day. In addition to these processing plants, 123 Government and 33 co-operatives milk chilling centres operate in the State.With the increase in milk production. Maharashtra now regularly exports milk to neighbouring states. It has also intiated a free school feeding scheme, benefiting more than three million school children from over 19,000 schools all over the Stat Dairy is a place where handling of milk and milk products is done and technology refers to the application of scientific knowledge for practical purposes. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and the manufacture of milk products on an industrial scale. In developed dairying countries such as the U.S.A., the year 1850 is seen as the dividing line between farm and factory-scale production. Various factors contributed to this change in these countries, viz. concentration of population in cities where jobs were plentiful, rapid industrialization, improvement of transportation facilities, development of machines, etc. whereas the rural areas were identified for milk production, the urban centres were selected for the location of milk processing plants and product manufacturing factories. These plants and factories were rapidly expanded and modernized with improved machinery and equipment to secure the various advantages of large-scale production. Nearly all the milk in the U.S.A. before 1900 was delivered as raw (natural) milk. Once pasteurization was introduced, it developed rapidly. Mechanical refrigeration helped in the rapid development of the factory system of market milk distribution. In India, dairying has been practised as a rural cottage industry since the remote past. Semi-commercial dairying started with the establishment of military dairy farms and cooperative milk unions throughout the country towards the end of the nineteenth century. 34
During the earlier years, each household in those countries maintained its ‘family cow’ or secured milk from its neighbour who supplied those living close by. As the urban populationincreased, fewer households could keep a cow for private use. The high cost of milk production, problems of sanitation etc., restricted the practice; and gradually the family cow in the city was eliminated and city cattle were all sent back to the rural areas. Gradually farmers within easy driving distance began delivering milk over regular routes in the cities. This was the beginning of the fluid milk-sheds which surround the large cities of today. Prior to the 1850s most milk was necessarily produced within a short distance of the place of consumption because of lack of suitable means of transportation and refrigeration. The Indian Dairy Industry has made rapid progress since Independence. A large number of modern milk plants and product factories have since been established. These organized dairies have been successfully engaged in the routine commercial production of pasteurized bottled milk and various Western and Indian dairy products. With modern knowledge of the protection of milk during transportation, it became possible to locate dairies where land was less expensive and crops could be grown more economically. In India, the market milk technology may be considered to have commenced in 1950, with the functioning of the Central Dairy of Aarey Milk Colony, and milk product technology in 1956 with the establishment of AMUL Dairy, Anand. The industry is still in its infancy and barely 10% of our total milk production under goes organized hand More than 2,445 million people economically active in agriculture in the world, probably 2/3 or even more ž of them are wholly or partly dependent on livestock farming. India is endowed with rich flora & Fauna & continues to be vital avenue for employment and income generation, especially in rural areas. India, which has 66% of economically active population, engaged in agriculture, derives 31% of Gross Domestic Product GDP from agriculture. The share of livestock product is estimated at 21% of total agricultural sector.
35
Milk Production 1950 – 17 million tonnes 1996 – 70.8 million tonnes 1997 – 74.3 mT 2008- 148
mT
(Projected) 2020 – 240 mT Expected to reach- 220 to 250 mT – 2020 India contributes to world milk production rise from 12-15 % & it will increase upto 3035% (year 2020) Average milk production / year America
6874
Kg/ year
Denmark
6223
Kg/year
Holland
5751
Kg/year
India
552
Kg/year
•
Average Productivity
•
2.4 kg/day or 732 kg/lactation/cow China:
1600 kg/lactation
America
7200 kg/lactation
Percapita availability: Recommanded – 210 gm India
36
1950
132 gm
1997
214 gm
2020
290 gm
India contributes 35% of total Asian milk Milk yield per breedable bovine in milk Cattle feed production (organized sector) Turnover of veterinary pharmaceuticals Dairy plants throughout Throughout as percentage of total milk output Value of output of milk group (1994-95) (Based on producers price) Value of output of dairy industry (Based on retail price)
1,250kg 1.5 million tonnes Rs 550 crores 20 mlpd 10 Rs 50,051 crores Rs 105,000 crores
Projected milk production at different rates of annual growth 1995 to 2000 year
@5%
@5.5%
@6%
1995
66.3
66.3
66.3
1996
69.3
70.0
70.2
1997
73.1
74.0
74.4
1998
76.7
78.0
78.8
1999
80.6
82.3
83.5
2000
84.6
86.8
88.5
Milk Composition
37
Sr.
Constituents
Buffalo
Cow
Goat
Liquid skimmed milk
no 1 2 3 4 5 6 7 8 9
Moisture (gm) Protein (gm) Fat (gm) Minerals (gm) Carbohydrates (gm) Energy calories (kcal) Calcium (mg) Phosphorus (mg) Iron (mg)
81.00 4.30 6.50 0.80 5.00 117.00 210.00 130.00 0.20
87.50 3.20 4.10 0.80 4.40 67.00 120.00 90.00 0.20
86.80 3.30 4.50 0.80 4.60 72.00 170.00 120.00 0.30
92.10 2.50 0.10 0.70 4.60 29.00 120.00 90.00 0.20
Indian Buffaloes: (Dairy business Directory 1996)
Buffaloes are classified into two categories; 1) reverine (depending upon variation in their habitat & genome) 2) swamp Swamp buffaloes: - 48 chromosomes South east asian countries Stocky animals, marshy land habitat River Buffaloes: - 50 chromosomes - massive in size and curled horns- Prefer to enter clear water World’s Buffalo population: 147 million about 142 millions in Asia & Pacific
38
India: leading most buffalo populated country 78 millions most of reverine Milk production: About 95% of world buffalo milk (45.3 million tonnes) is produced in Asia &Pacific, while 64.4% is produced in India (FAO.1992) From 1950 to 1992 milk production in the world increased by 4.26% The % of total bovines slaughtered; Total bovine slaughtered (%) World 17.1 to 17.4% or - 1.6% per annum India 15% per annum Asia 6.6% Increasing trend of buffalo population in most of the Asian countries in Brazil and Italy BREEDS Classified on phenotypic & geographic locations; Cockril (1982) = Buffalo river type; two sub groups; 1. Horns are closed and set close to head & are down swept ;eg. Murrah, Ravi, Mehasana, Jaffarabadi, Sambalpur 2. Horns are sickle shaped and unswept: e.g. Bhadawari, Kalahandi, Kanara, Manda, Nagpuri, Pandharpuri, Surti, Tarai & Toda Breeds of Buffaloes of Indian Origin and Breeding Tracts:
39
Group Murrah
Breed Murrah
Breeding tract Rohtak, Jind,Hisar, Bhiwari, Sonepat
type
Nili Ravi
(Hariyam)
Surti
Ferozepur (Punjab) Kaira and Baroda
Jaffarabadi
Kutch, Jungarh & Jamnagar dist
Uttar
Mehsana Bhadawari
Mehsana, sabarkantha, Banaskantha Dist. Bhadawari estate, Beh Tehsil in Agra, Gwalior & Etawah dist.
pradesh Central
Tarai Nagpuri
Tarai region of U.P. Nagpur, Akola, Amravati dist. South maharashtra, west A.P.,
India
Pandharpuri
north Karnataka Hilly region of Andra Pradesh and Orissa
Kalahandi
Bilaspur dist.
South
Sambalpur Toda
Nilgiri Hills
India
South Kanara
West coast in Kerela
Gujarat
Buffaloes found in the north –eastern states and the eastern coastal region of India & in China South east Asian countries e.g. Philippines, Thailand, Malaysia, Vietnam, Srilanka, Burma, Laos, Kampuchea, Bangladesh etc. have been classified as swamp buffaloes on the basis of their genetic constitution (2n=48) & natural habitat.The breeds includes in these groups are Manda & Palakhemundi. Production performance Growth: The average birth wt.(Indian buffaloes) low 21 kg High 41 kg Higher in male calves than in females Average daily gain of 548 gm between 3-6 months 404 gm between birth to 36 months Body weight at first calving- ranges from 367 kg (Dharwati) to 531 kg (Nili Ravi) Higher growth rate in reverine breeds than swamp
MILK PRODUCTION
40
Production performance of different breeds of Buffaloes:
Buffalo Murrah Nili Ravi Surti Bhadawari Nagpuri
Age at 1st calving
Lactation.
Lactation Length (days)
(months) Avg. Range 43.0 39.9-54.5 42.0 41.4-47.3 39.0 26.5-45.0 46.0 44.3-54.2 48.0 44.3-55.6
Yield (kg) Avg. Range 1850 1476-2515 1765 1596-2808 1364 1304-1693 1181 1103 926-1175
Avg (Range) 315(267-365) 2808 (09) 313(300-373) 276 (-) 270 (-)
Reproduction Performance: Most of the buffaloes are considered to be seasonal breeds with maximum calving taking place from July to November in almost all breeds Buffaloes come in oestrus in cold month and are sub-fertile during hot month Sub-fertility-> due to poor thermoregulaion in buffaloes and Poor nutrition -> poor heat symptom-low heat detection (only ligno-cellulosic material straw /dry roughages)
Murrah Nili Ravi Surti Bhadawari Nagpuri
Calving interval
Dry period
Service period
(days) 454 530 410 460 -
(days) 148 198 165 156 -
(days) 133 211 103 98
Analysis of dairy industry Any dairy industry has some important section as like:ďƒ˜ Milk reception section
41
Quality control section Processing and packing section Store keeping section Marketing section Administration section Cleaning section So I analysised all those thing in BIHAR STATE CO-OPERATIVE MILK PRODUCERS FEDERATION LTD.
GAYA SUDHA DAIRY
42
VISION AND MISSION VISION
Expanding leadership in business through people, keeping pace with market trends and technology.
MISSION
BUSINESS • Lead the Industry rate of growth • No. 1 in profit in Industry • Global Thrust CUSTOMER • Trusted Partner • Reliable & Cost effective Solutions/ services • Customer acquisition/expansion EMPLOYEES • Top 3 preferred employer • Learning Organization
43
• Digital way TECHNOLOGY • Technology Excellence • Introduction of new Solutions/Services • World Class Products PROCESSES • Best in Class Organization • Business & Service /Product delivery
CHAPTER-2
TRADE PROFILES
44
BUSINESS OF PRODUCTS Sudha means "Fresh" in Sanskrit. The brand name "Sudha," from the Sanskrit "sudah" was suggested by a quality control expert in Patna. Variants, all meaning "Fresh", are found in several Indian languages. Sudha products have been in use in millions of homes since 1946. Sudha Butter, Sudha Ghee, Sudha spray, Sudha Cheese, Sudha Chocolates, Sudha Shrikhand, Sudha Ice cream, NutrSUDHA, Sudha Milk and Sudha have made Sudha a leading food brand in India. (Turnover: Rs. 29 billion in 2006). Today Sudha is a symbol of many things. Of high-quality products sold at reasonable prices. Of the genesis of a vast co-operative network. Of the triumph of
indigenous technology. Of the
marketing savvy of a farmers organization. And of a proven model for
dairy
development. Sudha is the larger co-operative movement in India with 2.2 million milk producers organised in 10,552 co-operative societies in 2005-2006. The country's largest food company, Sudha, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. Sudha follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Sudha has given multinationals a run for their money. In butter, cheese and saturated fats, Sudha has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Sudha has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution.
Trade policy The Bihar State Co-operative Milk Federation Ltd (COMPFED), the marketers of sudha, has approved the continuation of the Sudha-Tata Fellowships for Rural Management 45
Professionals for a further period of five years. The Board of Directors of COMPFED, at its recent meeting on April 5, took this decision. In 2001, COMPFED and the Sir Ratan Tata Trust (SRTT) had instituted 30 fellowships in the Institute of Rural ManagementAnand (IRMA), with the objective of financially supporting the students pursuing the Post-Graduate Programme in Rural Management and encourage them to work with IRMA's designated organisations, COMPFED said in a release here. The total value of each fellowship is Rs 1 lakh, awarded on the basis of merit-cum-means. The awarded students are required to serve at least two years in designated organisations. So far, COMPFED has provided funds for 62 students. Sudha reigns in the milk market with a dominant share of almost 35 percent volume share as per industry estimates. Sudha announced making its flagship product affordable to everyone, palatable for single serving and portable for travellers. Unveiling the Rs 2 tubs for the middle class, Bihar State co-operative milk federation limited(COMPFED) said that the Sudha butter tub would be catering to 12 national and international airlines. These are Kingfisher Airlines, British Airways, Jet Airways, Air Mauritius, Korean Airlines, Royal Nepal Airlines, Air Italia, Malaysian Airlines, Jordanian Airlines, Iran Air, South African Airlines and Singapore Airlines. Now, similar tubs would be offering Sudha's cholesterol-free table margarine and Sudha Lite bread-spread, a release said. For the first time in India, the Sudha dairy plant at Patna is packing 8.1 g of butter in the tub. Made of PVC and sealed by aluminium foil, the airtight tub prevents any aerial and microbial contamination or deformation of butter. Hence, the butter in such tubs is safer and more hygienic for consumption. Packed for single serving, the tub can make for a healthy breakfast or mid-day meal at a school for children too. Next time we go shopping for cheese on your overseas trip, don't be surprised to find the familiar Sudha brand among an array of foreign brands on the store shelves.
46
For the Bihar state Co-operative Milk Federation limited (COMPFED), which markets milk products under the Sudha brand, is aggressively focusing on taking the brand to overseas markets.. With an eye on both consumer (which includes products such as cheese, butter, ghee and shrikhand) and commodity (skim milk and butter oil) exports, COMPFED is targeting export revenues of about Rs 200 crore this year. The trde policy or products of Sudha are divided into to categories: (1) Main Business. (2) Ancillary Business. oSo, the products are categorized below:
Main Business : Check out this vast and ever-growing range of 'tasteful' Sudha delectables! Fresh Milk
47
SUDHA Fresh Milk
SUDHA Gold Milk
This is the most hygienic milk available in the market. Pasteurised in state-of-the-art processing plants and pouch-packed for convenience.
SUDHA Taaza
SUDHA Lite Slim
Double Toned Milk
and Trim Milk
SUDHA Fresh
SUDHA Kool
Cream
Chocolate Milk
48
SUDHA Kool
SUDHA Kool
Flavoured Bottled
Flavoured Tetra Pack
Milk
SUDHA Shakti
SUDHA Masti
Toned Milk
Spiced Buttermilk SUDHA introduces the Best Thirst Quenching Drink
SUDHA Pasteurised Butter SUDHA BUTTER is made from Butter, Common Salt, permitted natural colourAnnatto.
Composition: •
Milk Fat 80%
•
Moisture 16% 49
•
Salt 2.5%
•
Curd 0.8%
Calorific Value: 720 kcal./100g Special Features: Made from fresh cream by modern continuous butter making machines. Marketed in India since 4 decades. Product Specification: Meets AGMARK standard and BIS specifications No.IS:13690:1992 SUDHA Lite Bread Spread SUDHA LITE BREAD SPREAD is made from a blend of Hydrogenated and Unhydrogenated Refined Vegetable oils, Milk fat, Skimmed Milk Powder, Common salt, Emulsifiers, Stabilisers, Class II Preservatives, Sequestering Agent and Antioxidants, Vit A not less than 30 IU per g and Vit D 2 IU per
Composition: Total fat: 59%, Milk Fat:10% 50
Special Features: Mixed fat spread "Grade-Low Fat" Product Specification: Meets Agmark Standards Bread Spread SUDHA Butter
SUDHA Lite
Utterly Butterly
Low fat, low
Delicious
Cholesterol Bread Spread
Delicious Table Margarine The Delicious way to eat healthy SUDHA Fresh Milk SUDHA MILK is made from Pasteurised Milk
Composition:
51
Variety SUDHA Gold (Whole milk) SUDHA Shakti (Standardised milk) SUDHA Taaza (Toned milk) SUDHA Lite (Double toned milk)
Fat
SNF
(%)
(%)*
6
9
4.5
8.5
3
8.5
1.5
8.5
*Every 100 parts of SNF (Solids Not Fat) contains 56 parts of carbohydrates, 34 parts of protein and 9 parts of minerals. Special Features: SUDHA Milk is the most hygenic liquid milk available in the market. It is pasteurised in state-of-the-art processing plants and pouch-packed to make it conveniently available to consumers. SUDHA Gold Milk SUDHA Gold is Long Life standardised milk. It is fresh and only fresh milk, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT milk. Notwithstanding popular misconception, UHT technology does not involve any use of preservatives. The UHT treatment ensures zero microbial activation, while preserving the maximum flavour, taste, and nutritional value. The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration.
52
SUDHA Gold contains 4.5% fat and 8.5% SNF minimum and is ideal for making sweet dishes (like kheer, payasam etc.) and for setting curds. It is also ideal for drinking straight from the pack for kids and adolescents who simply love its creamy taste sans the inconvenient cream layer! SUDHA Gold comes in convenient 1 liter and 500ml packs SUDHA Taaza Double Toned Milk SUDHA Taaza is Long Life double toned milk. It is fresh and only fresh milk, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT milk. Notwithstanding popular misconception, UHT technology does not involve any use of preservatives. The UHT treatment ensures zero microbial activation, while preserving the maximum flavour, taste, and nutritional value. The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration.
53
SUDHA Taaza contains 1.5% fat and 9% SNF minimum and is ideal for tea and coffee whitening and for setting curds. It is also just right for drinking straight from the pack for those who would like to enjoy the taste the goodness of natural while avoiding the hazards of too much fat! SUDHA Taaza comes in convenient 1 liter, 500ml and 200ml packs SUDHA Lite Slim and Trim Milk SUDHA Lite is Long Life skimmed milk. It is fresh and only fresh milk, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT milk. Notwithstanding popular misconception, UHT technology does not involve any use of preservatives. The UHT treatment ensures zero microbial activation, while preserving the maximum flavour, taste, and nutritional value. The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration.
54
SUDHA Lite Milk is a unique offering to health conscious milk lovers. With virtually zero fat content, nil cholesterol and 8.7% SNF minimum, it gives you all the proteins, vitamins and minerals of natural milk without your having to imbibe unnecessary flab in the deal! SUDHA Lite Milk comes in convenient 1 liter, 500ml and 200ml pack Fresh Cream
Chocolate Milk
SUDHA Shakti Toned Milk SUDHA Shakti is Long Life toned milk. It is fresh and only fresh milk, which has been processed with a technology called UHT (Ultra High Temperature), hence also known as UHT milk. Notwithstanding popular misconception, UHT technology does not involve any use of preservatives.
55
The UHT treatment ensures zero microbial activation, while preserving the aximum flavour, taste, and nutritional value. The aseptic packaging system protects the product from air and light and guarantees a long shelf life of 180 days without refrigeration.
SUDHA Shakti contains 3% fat and 8.5% SNF minimum. It is the ideal ultipurpose milk. Growing children love its taste while benefiting from its comprehensive nutrition. SUDHA Shakti comes in convenient 1 liter and 500ml packs. SUDHA Masti Spiced Buttermilk SUDHA introduces the Best Thirst Quenching Drink which is Free of Colour, Preservatives, Acids and Sucrose Sugar (unlike Cola drinks)
Product Details: Product - SUDHA Masti Spiced Buttermilk Pack - 200ml Tetra Brik
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MRP - Rs. 5.00 Ingredients Milk Solids, Common Salt, Spices and Condiments, Contains permitted StabilizerMost importantly, Unlike carbonated soft drinks, SUDHA Masti Spiced Buttermilk is 100% Natural and Sucrose Free without any color or preservative added. It is a low fat product with lower sodium salt content. It contains protein with almost 50% lower calorie than soft drinks. The spices and condiments added to the product enhance its taste and flavour. Available in convenient and attractive, take-away tamper proof 200 ml Tetra Pak Brik with 120 days shelf life at ambient temperatures. Presently available in India only.
Ancillary Business : This is the secondary business which is carried out by the company as a diversification to earn more profit and capture the market so the SUDHA also carry out such type of business and produce the products like dahi, sweets , deserts, milk powder, etc products which are prepared by the residues left after the main products are prepared. SUDHA is the largest co-operative movement in India with 2.2 million milk producers organised in 10,552 co-operative societies in 2003-2004. The country's largest food company, SUDHA, is the market leader in butter, whole milk, cheese, ice cream, dairy whitener, condensed milk, saturated fats and long life milk. SUDHA follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, SUDHA has given multinationals a run for their money. In butter, cheese and saturated fats, SUDHA has remained the
57
undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, SUDHA has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution. So, some products of Ancillary business are : Delicious Table Margarine What Is Table Margarine? Table Margarine is characterized by a physical consistency similar to butter and is commonly known as butter-substitute. Margarine is prepared exclusively from vegetable oils and fats.
Product Attributes Prepared from Refined Vegetable Oil. Total fat content is 80% min. Contains Zero Cholesterol, hence suitable for cardiac patients. Fortified with Vitamins A & D
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Manufactured in an ISO 9000 certified plant under strict hygienic conditions. The product is completely untouched by human hand Shelf life 6 months under refrigeration Product ApplicationsFor use as a butter-substitute in all applications. uitable for use as a cooking medium. Can be heated to high temperatures. Ideal as a spread on bread/toasts/sandwiches For shallow frying or utĂŠing (frying quickly in a little fat). For use as topping on variety of items, viz; pav-bhaji, parathas, khichri, pulao, soups etc. Pack Configuration Delicious Table Margarine Is Available In 100g & 500g Block Packs. Pricing 100g pack- Rs. 11.00 500g pack- Rs. 54.00 SUDHA Spray Infant Milk Food SUDHASPRAY INFANT MILK FOOD is made from partially skimmed milk, sugar, minerals and vitamins.
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Composition: Milk Proteins 22% Milk Fat 18% Carbohydrates : Lactose 32% Sucrose 18% Vitamins: A, D, K B group, C Minerals: Calcium, Magnesium, Phosphorus, Iron, Copper, Iodine, Manganese, Zinc, Calorific Value: 450 kcal./100g or 1880 KJ/100g. Special Features: Product formulated on guidelines set by Codex Commission of WHO/FAO. Marketed in India since last 25 years. Product Specification:
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Meets Bureau of Indian Standards specification No. IS:1547:1985. Manufactured under compulsory BIS Certification scheme.
SUDHA Instant Full Cream Milk Powder SUDHA INSTANT FULL CREAM MILK POWDER (Spray Dried) is made from Toned Milk, Vitamins A,D
Composition: Milk Fat 26% to 28%. Protein 26% Carbohydrates 37% Minerals 6% Moisture 3% Calorific Value: 500 kcal./100gm - Every 60g of powder contains minimum 1300 I.U. Vitamin A and 200 I.U. Vitamin D.
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Special Features: The product has more milk fat as compared to normal milk powders. It is packed under an atmosphere of Nitrogen. The product is creamy white in colour: Marketed in India since last 3 decades.
Product Specification: Meets ADPI extra grade standard for quality and BIS Specification No.IS:1165-1992 Sagar Skimmed Milk Powder SAGAR SKIMMED MILK POWDER (Spray Dried)is made from Skimmed Milk
Composition: Milk Fat (Max) 1% Milk Protein 35% Carbohydrates 51%
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Minerals 7% Moisture 3.5% Calorific Value: 350 kcal/100 gm Special Features: The product is readily soluble in lukewarm water. It is especially useful for diet preparations or for use by people on low calorie and high protein diet.Product Specification: SUDHA Instant Full Cream Milk Powder
SUDHA INSTANT FULL CREAM MILK POWDER (Spray Dried) is made from Toned Milk, Vitamins A,D
Composition: Milk Fat 26% to 28%.
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Protein 26% Carbohydrates 37% Minerals 6% Moisture 3% Calorific Value: 500 kcal./100gm - Every 60g of powder contains minimum 1300 I.U. Vitamin A and 200 I.U. Vitamin D. Special Features: The product has more milk fat as compared to normal milk powders. It is packed under an atmosphere of Nitrogen. The product is creamy white in colour: Marketed in India since last 3 decades. Product Specification: Meets ADPI extra grade standard for quality and BIS Specification No.IS:1165-1992.
Sagar Skimmed Milk Powder SAGAR SKIMMED MILK POWDER (Spray Dried)is made from Skimmed Milk
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Composition: Milk Fat (Max) 1% Milk Protein 35% Carbohydrates 51% Minerals 7% Moisture 3.5% Calorific Value: 350 kcal/100 gm Special Features: The product is readily soluble in lukewarm water. It is especially useful for diet preparations or for use by people on low calorie and high protein diet.Product Specification:Meets ADPI extra grade and BIS Sagar Tea Coffee Whitener SAGAR TEA & COFFEE WHITENER is made from Milk Solids, Sugar and Hydrogenated Vegetable Oils
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Approximate Composition: Vegetable Fat 20% Milk Protein Carbohydrates 50% Minerals 5% USP: Affordable whitener for the health conscious. Special Features: Sagar Tea and Coffee Whitener, is a specialty product, to be used primarily for making rich and tasteful tea and coffee. It is a high value for money offering for the health conscious SUDHAya Dairy Whitener SUDHAYA DAIRY WHITENER is made from partially skimmed milk and sugar.
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Composition: Milk Fat 20% Milk Protein 21% Carbohydrates : Lactose 33% Sugar 18% Minerals 5% Moisture 3% Calorific Value: 470 kcal./100gm Special Features: Packed under an atmosphere of Nitrogen, has excellent natural miscibility (without the use of lecithin), has a fine granular texture. A convenient alternative to condensed milk. Marketed in India since last 6 years. Product Specification:
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Meets BIS specification for sweetened Milk Powder. No.IS:12299:1988 SUDHA Pasteurized Processed Cheddar Cheese SUDHA PASTEURISED PROCESSED CHEDDAR CHEESE is made from Cheese, Sodium Citrate, Common Salt, Citric Acid, permitted natural colour Annatto. Emulsifier and Class II preservatives.
Composition: Fat 27% Moisture 45% Proteins 23% Added salt 2.5% Calorific Value: 340 kcal./100g
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Special Features: Made from graded cow/buffalo milk using microbial rennet SUDHA Cheese Spreads SUDHA CHEES E SPREAD is made from Soft Cheese, Cheddar Cheese and Common Salt.
Composition: Fat 18-20% Moisture 60% Protein 14-15% Addes Salt 1.8% Sodium Citrate 2.5% Calorific value : 240 kcal./100g Special Features:
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Highly acceptable product made from the most modern dairy plant through a special formulation.
SUDHA Emmental Cheese Presenting SUDHA's Emmental Cheese with holesThis famous cheese with a Swiss taste owes its name to the Emmental valley, near Berne in Switzerland. In this famous valley, the tradition of Cheese-making has flourished in the skilled hands of sennen, the local Alpine cowherds. The production of Cheese in Emmental valley can be traced to as far back as 1290 AD. One of the most striking features of Emmental is the `holes' or the `eyes', as they are popularly called. SUDHA Emmental Cheese has a sweet-dry flavour and hazelnut aroma. This cheese is normally available in the form of awheel, having convex edges and is covered with a dry-hard rind which is golden-yellow in colour. This rind is to be removed before consumption. Emmental is a ready to eat platter cheese and goes best with wines & cocktails. As opposed to the commonly available processed cheddar cheese, Emmental is actually a `live' cheese, i.e. it has live bacteria, which continue the ripening process, even after the cheese is packed and placed on the retail shelves. However, it is a 100% vegetarian coagulating enzyme.
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Composition: Moisture 43% Fat (On dry matter) 46% Salt 1.5% Storages & Handling Instructions: At all levels this product is to be stored at ordinary refrigeration temperature i.e. 4 degrees Centigrade to 8 degree Centigrade. This is the same temperature at which SUDHA Butter is storedThe consumers are advised to keep the product outside the refrigerator for 30 minutes before eating it, in order to get the full aroma and taste. Pack Sizes Available: SUDHA Emmental Cheese is available in a 200 gm pack for both the comsumer and institutional segments.
SUDHA Pizza Mozzarella Cheese
Ingredients:
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Milk, Common Salt, 100% Vegetarian Coagulating Enzymes. Composition: Fat on dry matter > 30% but < 40% Moisture > 45% but <52% Salt > 1.1% - 1.6% Special Features SUDHA,which is the largest selling brand of Cheese in India, is introducing genuine Mozzarella Cheese for the first time in the country. SUDHA Pizza Cheese has Moist, Soft, Elastic texture and has a very timely surface sheen and when fresh, it has a slightly salty blandish taste and pleasant aroma. Because of its stretchability, i.e. ability to form strings when hot, this cheese is ideal for preparing Lasagna, Veal Cutlet, Alla Parmagnia and as a topping on pizzas. When baked along with pizzas, it melts uniformly, beautifully engulfing all other ingredients of the pizza surface. Mozzarella is an excellent source of milk proteins, which are palatable
SUDHA / Sagar Pure Ghee SUDHA PURE GHEE is made from Milk Fat
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Composition: Milk Fat 99.7% Moisture 0.3% Calorific Value: 900 kcal./100g Special Features: Made from fresh cream. Has typical rich aroma and granular texture. An ethnic product made by dairies with decades of experience. A rich source of Vitamin A, D, E and K. Product Specification: Meets AGMARK SPECIAL GRADE specification of the Agmark scheme (1938) of Govt. of India SUDHA Paneer
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Four easy steps for best results Store in freezer compartment of refrigerator.Take out the required quantity to be cooked from the pack and place balance back in the freezer after folding the pack. Thaw the required quantity so you can cook faster. Just place it in the open or in a dish containing tap water for a few minutes to thaw. Once thawed, do not refreeze. Mattar Paneer Recipe Heat 5-6 tbsps. oil in a pan. Add paneer and fry until golden. Remove from pan. Add 4 tbsps. grated onion and fry till golden brown. Grind 10 gms. ginger and 6 flakes garlic into a paste and add to pan and stir. Add 1 tsp. turmeric, 2 tsps. red chilli powder, 1 tbsps. cumin powder, 1 tbsp. salt, 350 gms. chopped tomatoes and 1/4 cup water. Cook for approximately 5mins, stirring occasionally. Add 500 gms. peas and fry. Add 2 1/2 cups water. Cover and simmer until peas are almost tender. Add paneer and simmer forabout 5 mins. Stir in 1 tsp. garam masala powder. Serve hot, garnished with 1 tbsp. chopped coriander.
Mithai Mate SUDHA MITHAI MATE SWEETENED CONDENSED MILK is made from
Sugar & Milk solids
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Composition: Sweetened Condensed Milk Total Milk Solids 31% minimum Fat 9.0% minimum Added Cane Sugar 40.0% minimum Partly Skimmed Sweetened Condensed Milk Total Milk Solids 28.0% minimum Fat 3.0% to 9.0% minimum Added Cane Sugar 40.0% minimum Special Features: Produced on the only continuous condensing plant in the country. The product contains no preservatives. Product Specification: Meets BIS standards : IS:1166 Product Characteristic: Free flowing and smooth texture. White to creamy colour and pleasant flavour.
Use of Product: The product can be used to manufacture Ice Creams, Confectioneries like Toffees, Biscuits and Sweets 75
Dahi SUDHA MASTI DAHI is made from Pasteurized Toned Milk
Approximate Composition: Fat 3.5% SNF 8.5% Special Features: Only Packed curd available in market, made in the hygienic way in modern processing plant. Made with special culture to give a smooth, mild acidic taste and pleasant flavour consistently.
SUDHA Ice Creams SUDHA ICE CREAM is made from Milk and Milk products, Sugar, Stabilizers & Emulsifiers.
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Composition: Milk Fat 13.5% to 14.5% Total Solids 40% to 41% Sugar 15% Approx. Acidity 0.17% to 0.19% Protein 3.9% to 4.1% Food Energy Value: Calories per 100 ml -196.7 kcal Flavours: Vanila, Strawberry, Pineapple, Orange, Rose, Mango, Chocolate, Honey-Dew-Melon, Tutti Frutti, Litchi, Kesar Pista, Kaju Draksh, Butterscotch, Chocochips, Rajbhog and Cashew Break. Packaging:
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50 ml cup, 100 ml cup, 500 ml pack,1 litre pack, 4 litre pack, Chocobar, Ice candies, Cones and Kulfies. Special Features: Various varities of Ice Cream can be made from the basic mix by addition of required amount of permissible colours and flavours. Dry fruits and nuts would be used for making premium varities of Ice Cream. Product Specification: Product meets BIS specification.
SUDHA Shrikhand SUDHA SHRIKHAND is made from Chakka, Sugar and flavouring agents/fruits (Elaichi, Saffron, Mango pulp)
Composition: Fat 5.5% Milk solid-not fat 13.5%
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Sugar 40% Flavouring agent 2.5% Mango pulp Calorific Value: 260 kcal./100g Special Features: Shrikhand is a traditional sweet. It is the only pasteurized Shrikhand available in the country with smooth texture and extended shelf life. Made from most modern dairy equipment. Gulab Jamun Mix SUDHA MITHAEE GULABJAMUN MIX is made from Whole Milk Powder, Tartaric Acid, Sodium Bicarbonate
Approximate Composition: Moisture: 80% 79
Fat 12.0%
Special Features: SUDHA Mithaee Gulabjamun Mix is a mixture of all the required ingredients to produce tasty, softer and delicious Gulabjamuns. It gives relief from mixing different ingredients. SUDHA Chocolates SUDHA CHOCOLATE is made from Sugar, Cocoa Butter, Milk Solids, Chocolate mass
Composition: Milk Fat 2% Sugar 55% Total Fat 32.33% (Milk Fat + Cocoa Fat)
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Cocoa Solids 7.5% Milk Solids 20% Product Specification: Meets all requirements under the PFA for boiled sugar confectionary. NutrSUDHA NUTRSUDHA MALTED MILK FOOD is made from malt extract, milk solids, sugar, cocoa powder, emulsifying agents, sodium bicorbonate and added flavour.
Composition: Fat 6.5% Carbohydrates 70% (Starch, sugar) Moisture 2% Protein 11.5%
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Cocoa 8% Special Features: SUDHA's NutrSUDHA has the highest protein content among all the brown beverage powders sold in India and is the only one in India with BIS certification mark. Product Specification: Carries BIS certification mark IS: 1806-1975 Type II.
EXPORT COMPFED is India's largest exporter of Dairy Products. It has been accorded a "Trading House" status. COMPFED has received the APEDA ward from Government of India for Excellence in Dairy Product Exports for the last 9 years. The major export products are: Consumer Packs SUDHA Pure Ghee SUDHA Butter SUDHA Shrikhand SUDHA Mithaee Gulabjamun NutrSUDHA Brown Beverage SUDHA spray Infant Milk Food SUDHA Cheese SUDHA Malai Paneer
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SUDHA UHT Milk (Long Life) SUDHA Fresh Cream
Bulk Packs SUDHA Skimmed Milk Powder SUDHA Full Cream Milk Powder
CHAPTER-3
COMPITITOR GUJARAT COOPERATIVE MILK MARKETING FEDERATION (AMUL) HEAD OFFICE Gujarat Cooperative Milk Marketing Federation, PO Box 10, Amul Dairy Road, Anand 388 001, Gujarat, India Ph. No’s (+91) (2692) 240070, 258506, 258507, 258508, 258509 Fax No’s (+91) (2692) 240208, 240185
BRANCH OFFICE 6 OFFICES DELHI, CHENNAI, KOLKATA, MUMBAI, AHMEDABAD, GUHAWATI.
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6 ZONES ARE: ZONE 1:
CHANDIGARH
GHAZIABAD
ZONE 2:
BANGALORE
HYDRABAD
KANPUR
HOBLI
DEHRADUN
COMBRTORE
PARVANU
COCHIN
KUNDLI
KOZHIKODE
VARANASHI
VIZAG
JAMMU GORAKHPUR LUDHIANA DELHI
ZONE 3:
PATNA
ZONE 4:
RACHI
BOISAR
ASANSOL
PUNE
KOLKATA
GOA
HOWRAH
NAGPUR
MUMBAI
CUTTACK SAMBHALPUR ZONE 5:
AHMEDABAD
ZONE 6:
VAGHASI
GUWAHATI
INDORE
JORHAT
N E REGION
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JAIPUR RAIPUR UDAIPUR
Amul: The origin The mighty Ganges at its origin is but a tiny stream in the Gangotri ranges of the Himalayas. Similar is the story of Amul which inspired 'Operation Flood' and heralded the 'White Revolution' in India. It began with two village cooperatives and 250 liters of milk per day, nothing but a trickle compared to the flood it has become today. Today Amul collects processes and distributes over a million liters of milk and milk products per day, during the peak, on behalf of more than a thousand village cooperatives owned by half a million farmer members. Further, as Ganga-ma carries the aspirations of generations for moksha, Amul too has become a symbol of the aspirations of millions of farmers. Creating a pattern of liberation and self-reliance for every farmer to follow.
The start of a revolution: In the 1940s, in the district of Kaira in the State of Gujarat, India, a unique experiment was conducted that became one of the most celebrated success stories of India. At that time, In Gujarat, milk was procured from farmers by private milk contractors and by a private company, Polsonâ&#x20AC;&#x2122;s Dairy in Anand, the headquarters of the district. The company
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had a virtual stranglehold on the farmers, deciding the prices both of the procured as well as the sold milk. Polson’s Dairy chilled the milk and supplied it to the city of Bombay. It also extracted dairy products such as cheese and butter. In 1946, under inspiration from a leading freedom fighter, Mr. Vallabhbhai Patel (who belonged to Gujarat and who later became the Home Minister of the Central Government), Mr. Tribhuvandas Patel, a local farmer, freedom fighter and social worker, organized the farmers into co-operatives. These co-operatives would procure milk from the farmers, process the milk and sell it in Gujarat and in Bombay. In 1949, purely by chance, a dairy engineer, named Dr. Verghese Kurien, who had just completed his studies in dairy engineering in the U.S.A., came to India and was posted by the Government of India to a job at the Dairy Research Institute at Anand. A chance meeting between Dr. Kurien and Mr. Tribhuvandas Patel changed Dr. Kurien’s life and the course of India’s dairy industry. Though the purpose of this meeting was to simply to elicit some technical help from Dr. Kurien on commissioning some of the equipment just purchased by his co-operative, especially the chilling and pasteurizing equipment, the two men instantly struck a rapport. After the commissioning problem was solved, Dr. Kurien’s involvement with the Kaira District Co-operative Milk Producers’ Union Limited (that was the name of the co-operative registered) grew very rapidly and it soon extended to the larger sociological issues involved in organizing the farmers into cooperatives and running these co-operatives effectively. He observed the exploitation of farmers by the private milk contractors and Polson’s Dairy and understood how cooperatives could transform the lives of the members. This experiment of organizing farmers into co-operatives was one of the most successful interventions in India. A very loyal clientele of member farmers was built up who experienced prosperity on a scale they could not have dreamt of ten years earlier, since with good prices paid for their milk, raising milch cattle could become a good supplementary source of revenue to many households. The co-operatives were expanded to cover more and more areas of Gujarat and in each area, a network of local village level co-operatives and district level co-operatives were formed on a pattern similar to that at
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Anand (the so called Anand pattern). Kaira District Co-operative Milk Producersâ&#x20AC;&#x2122; Union became better known by the brand name of the products marketed by it (Amul) than by the name of the co-operative itself. Amul meant priceless in Sanskrit. It was also a word that was easy to pronounce, easy to remember and that carried a wholly positive connotation. This became the flagship brand for all the dairy products made by this Union. In 1954, Kaira District Co-operative Milk Producersâ&#x20AC;&#x2122; Union built a plant to convert surplus milk produced in the cold seasons into milk powder and butter. In 1958, a plant to manufacture cheese and one to produce baby food were added. Subsequent years saw the addition of more plants to produce different products.
Contradictions and Discontinuities Various issues highlight the contradictions inherent in the process of replication of a pilot project through top-down bureaucratic methods. As mentioned earlier, the co-operative at Anand had evolved from below, but in replicating, the NDDB insisted that a federation should be set up first, followed by unions and primary village milk producers' societies. The historical model was turned upside-down. In the absence of union or primary societies, it was obvious that the federation would comprise only state government nominees. The major objective of the whole programme of `Operation Flood' shifted in favour of outputs (boosting milk collection) instead of inputs (establishment of farmers' organizations). The single most important element of the Amul model, which even its worst critics would admit to be worth replicating, was accountability of organizations to members. Precisely this feature was lost sight of in the process of replication. The district co-operative unions or primary village co-operative societies which studied in other states as well as in parts of Gujarat revealed this practice to be the rule rather than the exception. A meeting of the general body of some of the oldest unions had not taken place for years. One could imagine how in the absence of such meetings more complex and difficult participative processes or norms of accountability
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could be developed in the parent organizations. The methods chosen by the NDDB to replicate were not always participative, democratic, or flexible. In fact, the NDDB's greatest burden is the success which it has behind it. As Paul (1982) has suggested, `if one looks for at least one public developmental programme that has achieved its purpose, undoubtedly one could not mention any programme but Operation Flood I, in which the strategy aimed at stabilizing milk supplies to the four metropolitan cities by helping the milk producers to build up their cooperatives' (NDDB, 1980-1). It is another question whether the success of a developmental programme should be measured by outputs or by the process and the institutions established to achieve outputs. The leadership of village societies in most of the villages is in the hands of high-caste people. The diversification of services through the investment of surpluses is not linked with the interest of poor cattle-owners. For example, the major problem of the pastoralist is the availability of dry fodder during lean months, whereas fodder-related research at the NDDB aims at either improving green fodder production or the nutrient content of available dry fodder. No dairy federation in any of the states has attempted the development of some sort of public distribution system for dry fodder. Another important feature of the Amul pattern was the assurance of year-round milk collection that organizations provided to their members. However, several milk routes which were not found viable in terms of the cost of milk collection were closed in the lean summer season, breaking this assurance. Given the fact that in low-population-density, high-risk, backward regions the cost of milk collection would be higher, the uniform viability norms prescribed by the NDDB provided no choice for the organizations but to neglect these regions. There was only one case where a dynamic executive officer of a dairy development corporation pleaded with the state government to be allowed to incur losses in the short run (Aurora, 1983). This was done to promote dairy development activities in drought-prone parts of the state where the cost of milk collection was very high. On the issue of flexibility the contention of the NDDB was that, even if flexibility was allowed, the state federations did not pass this on to their district unions, partly because they were dominated by the bureaucrats and not the elected officials.
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It is not surprising that the regions chosen by the NDDB for replicating the Amul/Anand pattern in different states were the regions endowed with most favourable natural resources and market infrastructure. In that sense, this strategy continued the bias of Green Revolution strategy where the emphasis was also to concentrate technological change in the most favourable regions and at the land holdings of the best-endowed farmers. The contradiction inherent in the statement was that this best one-third of the country did not have farmers dependent upon dairying as a primary means of subsistence, as was the case in the most backward, semi-arid and arid part (a little less than one-third) of the country. What is also interesting is that many multinational corporations have chosen precisely the area which the NDDB has chosen for replication of the model in the first phase. In a later phase, the NDDB included many backward regions, but the best pockets have been selected even in those districts. Each failure, each obstacle, each stumbling block can be turned into a success story. In the early years, Amul had to face a number of problems. With every problem came opportunity. A chance to turn a negative into a positive. Milk by products and supplementary yield which suffered from the same lack of marketing and distribution facilities became encumbrances. Instead of being bogged down by their fate they were used as stepping stones for expansion. Backward integration of the process led the cooperatives to advances in animal husbandry and veterinary practice. Milk by products: An excuse to expand. The response to these provided stimulus for further growth. For example, as the movement spread in the district, it was found that the Bombay Milk Scheme could not absorb the extra milk collected by the Kaira Union in winter, when the production on an average was 2.5 times more than in summer. Thus, even by 1953, the farmer-members had no assured market for the extra milk produced in winter. They were again forced to sell a large surplus at low rates to the middlemen. The remedy was to set up a plant to process milk into products like butter and milk powder. A Rs 5 million plant to manufacture milk powder and butter was completed in 1955. In 1958, the factory was expanded to manufacture sweetened condensed milk. Two years later, a new wing was
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added for the manufacture of 2500 tons of roller dried baby food and 600 tons of cheese per year, the former based on a formula developed with the assistance of Central Food Technological Research Institute (CFTRI), Mysore. It was the first time anywhere in the world that cheese or baby food was made from buffalo milk on a large, commercial scale. Another milestone was the completion of a project to manufacture balanced cattle feed. The plant was donated by OXFAM under the Freedom From Hunger Campaign of the FAO. To meet the requirement of milk powder for the Defense, the Kaira Union was asked by the Government of India in 1963 to setup additional milk drying capacity. A new dairy capable of producing 40 tons of milk powder and 20 tons of butter a day was speedily completed. It was declared open in 1965. The Mogar Complex where high protein weaning food, chocolate and malted food are being made was another initiative by Amul to ensure that while it fulfilled the social responsibility to meet the demand for liquid milk, its members were not deprived of the benefits to be had from the sale of high value-added products. Traditionally dairying was a subsidairy occupation of the farmers of Kaira. However, the contribution to the farmer's income was not as prominent as his attachment to dairying as a tradition handed down from one generation to the next. The milk yield from animals, which maintained mainly on the by products of the farm, was decidedly low. That together with the lack of facilities to market eventhe little produced rendered the scientific practice of animal husbandry irrational as well as unaffordable. The return on the investment as well as the prospects of being able to market the product looked very bleak. It was a vicious cycle reinforced by generations of beliefs. The Kaira Union broke the cycle by not only taking upon themselves the responsibility of collecting the marketable surplus of milk but also provided the members with every provision needed to enhance production. Thus the Kaira Union has full-fledged machinery geared to provide animal health care and breeding facilities. As early as late fifties, the Union started making high quality buffalo semen. Through village society workers artificial insemination service was made available to the rural animal population.
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The Union started its mobile veterinary services to render animal health care at the farmers doorstep. Probably for the first time in the country, veterinary first aid services, by trained personnel, were made available in the villages.The Union's 16 mobile veterinary dispensaries are manned by fully qualified staff. All the villages are visited bimonthly, on a predetermined day, to provide animal health care. A 24-hour Emergency Service is also available at a fee (Rs. 35 for members and Rs. 100 for non-members). All the mobile veterinary vans are equipped with Radio Telephones.
The Union runs a semen production center where it maintains high pedigreed Surti buffalo bulls, Holstein Friesian bulls, Jersey bulls and 50 per cent crossbred bulls. The semen obtained from these bulls is used for artificial breeding of buffaloes and cows belonging to the farmer members of the district. The artificial insemination service has become very popular because it regulates the frequency of calving in cows and buffaloes thus reducing their dry period. Not only that, a balanced feed concentrate is manufactured in the Union's Cattle Feed Plant and sold to the members through the societies at cost price. Impressive though its growth, the unique feature of the Amul sagas did not lie in the extensive use of modern technology, nor the range of its products, not even the rapid inroads it made into the market for dairy products. The essence of the Amul story lies in the breakthrough it achieved in modernizing the subsistence economy of a sector by organizing the rural producers in the areas. The Kaira experiment: A new beginning in more ways than one. A system which involves participation of people on such a large magnitude does not confine itself to an isolated sector. The ripples of its turbulence affect other areas of the society as well. The cooperatives in the villages of Kaira are contributing to various desirable social changes such as: The yearly elections of the management committee and its chairman, by the members, are making the participants aware of their rights and educating them about the democratic process. Perpetuating the voluntary mix of the various ethnic and social groups twice-aday for common causes and mutual betterment has resulted in eroding many social
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inequilibria. The rich and the poor, the elite and the ordinary come together to cooperate for a common cause. More than 900 village cooperatives have created jobs for nearly 5000 people in their own villages -- without disturbing the socio-agro-system – and thereby the exodus from the rural areas has been arrested to a great extent. The income from milk has contributed to their household economy. Besides, women, who are the major participants, now have a say in the home economy. Independent studies by various individuals and institutions have shown that as high as 48 per cent of the income of the rural household in Kaira District is being derived from dairying. Since dairying is a subsidairy occupation for the majority of the rural population, this income is helping these people not only to liberate themselves from the stronghold of poverty but also to elevate their social status. The credit for taking India to the top of the International dairy sector goes to the millions of small dairy farmers dispersed across the country.
KWALITY WALL’S Kwality is a brand name that is well recognized and respected in today’s fast changing food & beverage market. Kwality is a brand that is well known and liked by North Indians. The company being started in Delhi has a strong customer base in the city. P. L. Lamba, the founder of the company wanted to create a company whose very name would reflect the service standard of all its future products. Where the highest quality food products would be served at the best price to satisfy the taste buds of an experimental Delhi. With this mission in mind, in 1940 he opened the first Kwality restaurant in Delhi’s famous Connaught Place and thus they started with the company ‘kwality’ a rich legacy that has continued to this day. After passing 65 successful years, the Kwality restaurant became the most popular food joint for the people of Delhi. Today, over 60 years later, that pride is undiminished and from its humble beginnings, the Kwality Group today successfully runs the famous Asiad Village restaurant complex. 92
P. L. Lamba’s gen-next Sunil and Dhruv Lamba have taken the family legacy into the future with pulsating new ideas like the Breads and More café chains in India and the Express food courts in various malls and hospitals. Kwality Ice Cream is the pioneer in the Indian ice-cream manufacturing industry and in 1956 became the first company in the country to use imported technology for manufacturing ice-cream on a commercial scale. As the ice-cream industry exploded in India, in 1995 Kwality Group joined hands with Hindustan Lever Limited and then there was no looking back. The Indian consumer market was introduced to “Kwality Walls”, the result of a collaboration between global brand Walls and the leading Indian ice-cream brand Kwality. Though the two giants eventually parted ways, the collaboration made Kwality a household name and created deep in roads for the brand in the consumer market. Today, Kwality is not just a brand – it is the ice-cream associated with the Indian summer; it’s the first choice in ice-cream for any child or adult during the scorching Indian summers. Kwality ice-creams are trusted not only for their rich, creamy flavours, but also for their trusted quality and nutritious food value. MANAGEMENT HIERARCHY Chairman
P.L.Lamba
Managing director
Sunil lamba
Executive Director
Dhurva lamba
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VADILAL Today, the name Vadilal conjures images of lip-smacking ice cream in a whole gamut of flavours. Vadilal spells quality, availability, variety and state-of-the-art machinery and equipment. It has, however, been a long journey for the group, which traces its origins way back to 1907, when a certain unassuming gentleman, by the name of Vadilal Gandhi, the great-grand father of Virendra R Gandhi, Rajesh R Gandhi and Devanshu L Gandhi, started a soda fountain. He passed on the business to his son, Ranchod Lal, who ran a one-man show, and, with a hand cranked machine, started a small retail outlet in 1926. Eventually, Ranchod Lal's sons, Ram Chandra and Lakshman, inherited the business and they were instrumental in giving a new direction to the company. The duo imparted a new vision to the venture and infused a spirit of calculated risk-taking into the company. As a result, by the 1970s, the Vadilal Company had already evolved into a modern corporate entity. In 1972-73, the company had 8-10 outlets in Ahmedabad. Gradually, it moved from the city to other parts of Gujarat. By 1985, the company moved towards neighbouring states like Rajasthan and Madhya Pradesh.
But the expansion was undertaken very
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methodically and the company spent five to six years in spreading their business and then consolidating it" says Shri Ramchandrabhai Gandhi (Chairman). VISION To become an Indian MNC in frozen foods”. “To provide products and services at an affordable price without compromising the quality,”
HR Philosophy Vadilal Group has a progressive and a dynamic Human Resource (HR) philosophy. The company understands that Human Resource Management is concerned with integrating people into a work environment, motivating them to work together effectively and providing them social, psychological and financial satisfaction – this is what they exactly try to do. The company believes in transforming its human capital into a key source of competitive advantage because they understand its value when tough competition is ruling the market scenario.
Their strong value system is driven by result orientation, adaptability to
change, humility and respect for subordinates and peers. The company helps the employees to harmonize their personal growth strategy with the growth strategy of the group. Structure that can motivate its employees for putting their best and hence earning the share of revenue in the form of incentives. Training & Development enables the employees to hone their skills, think out of box, develop the initiatives, adopt a pro-active approach, become more productive and have a well-defined career path which is in line with the overall organizational objectives. Feed back from exit interviews is used for constant improvements.
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Organizational Culture is the easiest thing to comprehend and at the same time the most difficult thing to define.
This is because of the aura of mystique that surrounds
Organizational Culture. CODE OF CONDUCT FOR DIRECTORS INTRODUCTION This Code of Conduct has been adopted by Vadilal Industries Limited to comply with the applicable rules of the Stock Exchanges where securities of the Company are listed i.e. The Stock Exchange, Mumbai and Ahmedabad Stock Exchange. The principal duty of the Board of Directors, along with management, is to ensure that the Company is well managed in the interests of its shareholders. The Board of Directors plays the central role in the Companyâ&#x20AC;&#x2122;s governance. It is the Companyâ&#x20AC;&#x2122;s decision-making authority on all matters except those reserved to shareholders or delegated to the management. The Board of Directors is not expected to assume an active role in the day-to-day management of the Company. All Board members shall affirm compliance of this Code on an annual basis. On the basis of affirmation, two Managing Directors of the Company, namely, Shri Rajesh R. Gandhi and Shri Devanshu L. Gandhi, will give the declaration to this effect and the declaration will be published in the Annual Report of the Company. GUIDELINES FOR CONDUCT Each director should seek to use due care in the performance of his/her duties, be loyal to the Company, act in good faith and in a manner such director reasonably believes to be not opposed to the best interests of the Company. A director should seek to also :i) make reasonable efforts to attend Board Meetings, Committee Meetings and General Meetings of the Shareholders ; ii) dedicate time and attention to the Company; and iii) seek to comply with all applicable laws, regulations, confidentiality, obligations and corporate policies of the Company. 96
CORPORATE BUSINESS OPPORTUNITIES In carrying out their duties and responsibilities, directors should avoid : i) appropriating corporate business opportunities for themselves that are discovered through the use of Company property or information or their position as directors; ii) using Company property or information, or their position as directors, for personal gain; and iii) competing with the Company. A corporate business opportunity is an opportunity (1) which is in the Companyâ&#x20AC;&#x2122;s line of business or proposed expansion or diversification, (2) which the Company is financially able to undertake and (3) which may be of interest to the Company. A director who learns of such a corporate business opportunity and who wishes to avail of, it should disclose such opportunity to the Companyâ&#x20AC;&#x2122;s Board of Directors. If the Board of Directors determines that the Company does not have an actual or expected interest in such opportunity, then, and only then, may the director avail of it, provided that the director has not wrongfully utilized the Company's resources in order to acquire such opportunity. CONFLICTS OF INTEREST Each director should endeavor to avoid having his or her private interests interfere with (i) the interests of the Company ,or (ii) his or her ability to perform his or her duties and responsibilities objectively and effectively. Directors should avoid receiving, or permitting members of their immediate
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family to receive, improper personal benefits from the Company, including loans from or guarantees of obligations by the Company. A director should make a full disclosure to the entire Board of any transaction or relationship that such a director reasonably expects could give rise to an actual conflict of interest with the Company and seek the Board’s authorization to pursue such transactions or relationships. It is a conflict of interest to serve as a Director of any Company that competes with the Company. COMPANY PROPERTY In carrying out their duties and responsibilities, directors should endeavor to ensure that management is causing the Company’s assets, proprietary information and resources to be used by the Company and its employees only for legitimate business purposes of the Company.
CONFIDENTIAL INFORMATION Directors should maintain the confidentiality of information entrusted to them in carrying out their duties and responsibilities, except where disclosure is approved by the Company or legally mandated or if such information is in the public domain. The Company’s confidential and proprietary information shall not be inappropriately disclosed or used for the personal gain or advantage of any director or anyone other than the Company. These obligations apply not only during a Director’s term, but thereafter as well. FAIR DEALING In carrying out their duties and responsibilities, directors should endeavor to deal fairly, and should promote fair dealing by the Company, its employees and agents, with customers, suppliers and employees.
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Directors should not seek to take unfair advantage of the Company through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing. COMPLIANCE WITH LAWS AND REGULATIONS In carrying out their duties and responsibilities, directors should comply, and endeavor to ensure that the management is causing the Company to comply, with applicable laws, rules and regulations. In addition, if any director becomes aware of any information that he or she believes constitutes evidence of a material violation of any securities or other laws, rules or regulations applicable to the Company or the operation of its business, by the Company, any employee or another director, then such director should bring such information to the attention of the Board of Directors of the Company.
INSIDER TRADING Directors should observe all applicable laws and with respect to the purchase and sale of the Company’s securities. It is the responsibility of each director to become familiar with and understand these laws and regulations. Insider Trading generally involves the act of subscribing or buying or selling of the Company’s securities, when in the possession of any Unpublished Price Sensitive Information about the Company. It also involves disclosing any Unpublished Price Sensitive Information about the Company to others who could subscribe or buy or sell the Company’s securities. Insider Trading invokes severe civil and criminal penalties not only on the Insider but also on the Company in certain circumstances under the Regulations issued in India under the Securities and Exchange Board of India (SEBI) Act, 1992. “Sensitive information” is information which relates directly or indirectly to a Company and which if published is likely to materially affect the price of Securities of a Company.
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It is important to note that both positive and negative information could be price sensitive. RELATED PARTIES As a general rule, Directors should avoid conducting Company business with related parties as defined under applicable Accounting Rules, SEBI, Companies Act, 1956 and Securities Market Rules. If such a related party transaction is unavoidable, director must fully disclose the nature of the such transaction to the Company. POLITICAL CONTRIBUTIONS It is the Company’s policy to comply fully with all local, state, foreign and other applicable laws, rules and regulations regarding political contributions. The Company’s funds or assets must not be used for or be contributed to political campaigns or political practices under any circumstances without the prior approval of the Board of Directors of the Company. ENCOURAGING THE REPORTING OF ILLEGAL OR UNETHICAL BEHAVIOR Directors should endeavor to ensure that management is causing the Company to promote ethical behavior and to encourage employees to report evidence of illegal or unethical behavior to appropriate Company personnel. Directors should endeavor to ensure that the Company will not allow retaliation against any employee who makes a good faith report about a possible violation of the Company’s Code of Conduct.
OTHERS (i) To observe and guide the Company in maintaining highest degree of Corporate Governance.
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(ii) To inform the Company immediately about the emergence of any situation that may disqualify him / her from directorship. (iii) Not to hold any office or place of profits in the company by himself / herself or by his / her relatives without full disclosure of information in connection therewith. NON-COMPLIANCE Suspected violations of this Code may be reported to the Chairman of the Board or the Chairman of the Audit Committee. All reported violations should be appropriately investigated. Any waiver of this Directors’ Code must be approved by the Board of Directors and publicly disclosed if required by any applicable law or regulation. NO RIGHTS CREATED This Directors' Code sets forth guidelines for conduct for the Board of Directors.
NESTLE Since Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a neighbor’s child, the Nestlé Company has aimed to build a business as the world's leading nutrition, health and wellness company based on sound human values and principles. While the Nestlé Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of the Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. Nestle is the world's foremost Nutrition, Health and Wellness company. We are committed to increasing the nutritional value of our products while improving the taste. Nestlé (China) Ltd has donated some 10,000 cases of products to the people of Sichuan.
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Meanwhile, Nestlé (Thai) Ltd has sent Pure Life water to the survivors of the Myanmar cyclone, and Nestlé Myanmar medical staff have joined the recovery teams. BUSINESS PRINCIPLES •
Nestlé is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:
•
Nestlé's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.
•
Nestlé does not favor short-term profit at the expense of successful long-term business development.
•
Nestlé recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust, and that without its consumers the Company would not exist.
•
Nestlé believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.
•
Nestlé is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.
•
Nestlé continues to maintain its commitment to follow and respect all applicable local laws in each of its markets.
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MOTHER DAIRY Mother Dairy â&#x20AC;&#x201C; Delhi was set up in 1974 under the Operation Flood Programme. It is now a wholly owned company of the National Dairy Development Board (NDDB).
Mother Dairy markets & sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices 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. Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to 103
nationally market all Dhara products. It is Mother Dairyâ&#x20AC;&#x2122;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;
(b) 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 stateof-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 IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. 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 2.8 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 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive
outlets
of
Mother
Dairy.
The companyâ&#x20AC;&#x2122;s derives significant competitive advantage from its unique distribution network of bulk vending 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, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country.
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The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Companyâ&#x20AC;&#x2122;s modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-theart fruit processing plant has been set up at Bangalore with fruit handling capacity of around
250
MT
per
day.
Mother Dairy has also been marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of edible oils and is available across the country in over 2,00,000 outlets. The brand is currently available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. Mother Dairy has also launched extra
virgin
Olive
Oil
under
the
Daroliva
brand.
Mother Dairy has over the last 3 decades, harnessed the power of farmer cooperatives to deliver a range of delicious products and bring a smile on your face. In times to come, Mother Dairy shall strive to remain one of Indiaâ&#x20AC;&#x2122;s finest food companies. Real milk. Abundant toppings. And an utterly delectable taste. That's the secret of Mother Dairy's fascinating range of rich and creamy ice creams - a lip-smacking array of ice candies, milk lollies, bars, cones, real fruit ice creams, Sundaes, low fat desserts and takehome packs. Mother Dairy ice creams are now being enjoyed across the markets of Delhi/ NCR, Mumbai, Kolkata, Punjab, Rajasthan, UP & Uttaranchal. Mother Dairy is inching closer to Hindustan Lever Ltd in the Rs 800-crore ice cream market. While SUDHA reigns in the ice-cream market with a dominant share of almost
105
35 per cent, HLL's Kwality Walls brand has been hovering around 16-17 per cent volume share as per industry estimates. Mr Paul Thachil, CEO, Mother Dairy, said, "We are looking at having a 14-15 per cent volume share this year and intend taking our ice creams to the southern markets." Besides Delhi, Mother Dairy ice creams are currently available in Mumbai and Kolkata. "The southern markets are dominated by local players in the ice-cream category but we have the advantage of our cold chain and retailer network due to our frozen foods brand of Safal. "Both the products would require the same kind of temperature band," said Mr Thachil. Mother Dairy ice creams will now enter the markets of Bangalore and Hyderabad before rolling it out in Chennai. However, Kerala is being avoided by the dairy major primarily due to the dominance of local ice cream players in the State. Segmenting its ice creams under a youth centric brand, Chillz, there are other variants based on low fat diets in its portfolio. However, this summer the co-operative is targeting children with the baseline â&#x20AC;&#x201D; `Jagaye Andar ka Bandar' while it is luring adults with the message `Give In'. Besides, extensions are being planned for each of its flagship brands. Chillz may be extended into the ready-to-eat category, while Dhara, the edible oil brand may enter new segments such as pulses, cereals and spices. Brand extensions Its foods brand, Safal, has also graduated from frozen peas, corn, juices and mixed vegetables to ketchups, jams and tomato purees, and will be available as a drink in the market. As for the umbrella brand of Mother Dairy, it may get stretched to new products such as paneer and Indian sweets in the near future.
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Meanwhile, after capturing the Delhi market, Mother Dairy has been steadily increasing its franchise in the Mumbai market. It has recently launched its dahi brand in Mumbai, where it will have competition from SUDHA and Nestle. The company is targeting a market share between 30 and 35 per cent in Mumbai within a year of the launch. Curd would complete the existing dairy portfolio in the city," said Mr Thachil. The Rs 2,800-crore Mother Dairy expects to grow at 20 per cent this year.
CHAPTER-4
COMPFED PROMOTER & BACKGROUND PROMOTOR: NATIONAL DAIRY DEVELOMPMENT BOARD (NDDB) The National Dairy Development Board was created to promote, finance and support producer-owned and controlled organisations. NDDB's programmes and activities seek to strengthen farmer cooperatives and support national policies that are favourable to the growth of such institutions. Fundamental to NDDB's efforts are cooperative principles and cooperative strategies. The Operation Flood (OF) programme initiated by NDDB in 1970 was a planned attempt to revive India's Dairy Industry from a premature stagnation. The OF programme not only propelled the growth of dairy development in India, it also helped India become the world's largest milk producer.
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OF enhanced the incomes and quality of life for millions of India's dairy farmers, most of them poor and many of them women. It has become India's largest Dairy Development Programme. OF (1970-1996) created a strong foundation to transform India's dairy sector into a vibrant business activity. It paved the way to take up new initiatives and create new conditions to firm up India's world leadership in milk production. The new challenge for the Dairy Industry was to explore ways to emerge stronger using the network created under OF. The response is Perspective 2010, a plan that attempts to take the dairy cooperative movement to its highest potential. Perspective 2010 focuses on four key areas. These include Strengthening Cooperative Business, Production Enhancement, Assuring Quality and creating a National Information Network. The State Milk Marketing Federations and the Milk Producers' Cooperative Unions, the architects and key beneficiaries have identified the thrust areas. The plan is designed keeping at helm the benefit to farmers at large. NDDB facilitated the planning process and will provide technical support and need-based finance for implementing Perspective 2010. Dairy Cooperatives account for the major share of processed liquid milk marketed in the country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations. The Dairy Board's programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as producer-owned and controlled organisations. NDDB supports the development of dairy cooperatives by providing them financial assistance and technical expertise, ensuring a better future for India's farmers. Over the years, brands created by cooperatives have become synonymous with quality and value. Brands like SUDHA (COMPFED), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur) are among those that have earned customer confidence.
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The NDDB belive that: •
Cooperation is the preferred form of enterprise, giving people control over the resources they create through democratic self-governance.
•
Self-reliance is attained when people work together, have a financial stake, and both enjoy the autonomy and accept the account ability for building and managing their own institutions.
•
Progressive evolution of the society is possible only when development is directed by those whom it seeks to benefit.
•
In particular, women and the less privileged must be involved in cooperative management and decision-making.
•
Technological innovation and the constant search for better ways to achieve our objectives is the best way to retain our leading position in a dynamic market.
•
While our methods change to reflect changing conditions, our purpose and values must remain constant.
The National Dairy Development Board (NDDB) was founded in 1965 to replace exploitation with empowerment, tradition with modernity, stagnation with growth, transforming dairying into an instrument for the development of India's rural people. NDDB began its operations with the mission of making dairying a vehicle to a better future for millions of grassroots milk producers. The mission achieved thrust and direction with the launching of "Operation Flood", a programme extending over 26 years and which used World Bank loan to finance India's emergence as the world's largest milk producing nation. Operation Flood's third phase was completed in 1996 and has to its credit a number of significant achievements.
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As on March 2006, India's 1,17,575 village dairy cooperatives federated into 170 milk unions and 15 federations procured on an average 21.5 million litres of milk every day. 12.4 milliion farmers are presently members of village dairy cooperatives. Since its inception, the Dairy Board has planned and spearheaded India's dairy programmes by placing dairy development in the hands of milk producers and the professionals they employ to manage their cooperatives. In addition, NDDB also promotes other commodity-based cooperatives,
allied industries and veterinary
biologicals on an intensive and nation-wide basis.
BACKGROUND: Even at the time of its formation, COMPFED had three major products in its portfolio: liquid milk, butter and milk powder. Gradually, many new products were added to its range, largely milk derivatives. In milk alone, it sold full cream milk, semi toned milk, and fully toned milk, all with different names and in readily identifiable pouches. By reducing the fat, it could not only sell separately fat derivatives such as cream and butter (which were also products that yielded a higher margin), but also make the resultant milk available at cheaper prices, so that poorer people also could consume milk. It had undertaken a unique experiment in the 1970s to supply milk to places as far away as Delhi and Calcutta through insulated rail tankers, and this was so successful that it had continued since then. In the 1970s, COMPFED introduced its cheddar cheese and in 1983, a cheese spread. In the same year, it entered also the sweet market (milk based) through the introduction of SUDHA Shrikhand, a sweetish sour item produced by milk and curd (a form of yogurt). SUDHAya, a dairy whitener was introduced and was priced below the prevailing brands and soon became the market leader. In 1990s, COMPFED
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introduced a whole lot of new products: a condensed milk called SUDHA Mithaimate; SUDHA Lite, a low fat, low cholesterol spread butter, and SUDHA ice cream. After 1996, it went on to introduce a still greater variety of products: pizza (mozzarella) cheese, cheese slice, cheese powder, malai paneer (a form of cottage cheese), gulab jamun (a sweet primer to be processed by deep frying to make a sweet called gulab jamun), buttermilk, a chocolate based beverage called NutrSUDHA and chocolates. In 1996, COMPFED launched its SUDHA brand ice cream. India’s ice cream market was estimated to be around Rs.8 billion in the year 2000. COMPFED launched its ice creams in fourteen flavors in the city of Mumbai and the State of Gujarat. It was priced at about 30 percent less than the prevailing prices, and it also emphasized that it was fully vegetarian, i.e., it did not contain any gelatin. This was an important attribute to many consumers in Gujarat, which was a predominantly vegetarian state. In less than a year, SUDHA ice cream commanded a share of about 55 percent in Gujarat and 30 percent in Mumbai; by the year 2000, its share in India as a whole had reached 30 percent. In 1997, COMPFED also scored a major achievement when it managed to get some of the cooperatives in the other States of the country, trying to launch their own ice cream brands, to sell all their ice creams under the SUDHA brand name. This enabled COMPFED to leverage the capacity of more than 180 co-operatives in the country, with a milk procurement of more than 11 million litres per day, and located close to the markets. In addition, it also diversified into non-milk products. The most important of this diversification was into edible oils in 1988. At that time, the prices of edible oils were being manipulated by oil traders with the result that the prices were shooting up to unacceptable levels. Even though oil seed growers’ co-operatives existed, most of them were run badly and losing money. Edible oils have always been a very sensitive subject in India, leading to even fall of governments. Hence the government persuaded NDDB to arrange for procurement of clean, unadulterated groundnut oil and sell it through its own outlets. Thus it was essentially a market intervention operation. Besides, this provided NDDB to reorganize the groundnut farmers’ co-operatives as it had done with milk producing farmers four decades earlier. Gujarat was the right State for this experiment,
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since more than 60 percent of the countryâ&#x20AC;&#x2122;s groundnut oil production was accounted for by Gujarat. COMPFED marketed this oil on behalf of NDDB. COMPFED launched a new brand, named Dhara (literally meaning flow), not wanting to carry over the SUDHA brand name which was deeply associated in the public mind with milk derivatives. It sold its oil on a platform of absolute purity, a claim it could justifiably make. Since much of the edible oil in India was (and continues to be) adulterated, purity could be a differentiating factor. It also coined a slogan, Dhara, Shudh Dhara, meaning, literally, flow, pure flow. The launch was also supported by an advertising campaign with a catchy jingle. Later, mustard and certain other oils were also marketed under the Dhara brand name. Even though the oil traders fought back bitterly and often violently, and used their political connections to the full, Dhara was able to hold its own and became the leading brand of packaged edible oils. However, it must be said that dealing in edible oils was found to be a far more difficult task as compared to dealing in milk, and the success achieved in organizing groundnut farmers into co-operatives was limited. The National Dairy Development Board has been constituted as a body corporate and declared an institution of national importance by an Act of India's Parliament. The National Dairy Development Board -- initially registered as a society under the Societies Act 1860 -- was merged with the erstwhile Indian Dairy Corporation, a company formed and registered under the Companies Act 1956, by an Act of India's Parliament - the NDDB Act 1987 (37 of 1987), with effect from 12 October, 1987. The new body corporate was declared an institution of national importance by the Act. In the late 1990s, COMPFED undertook distribution of fruit based products on behalf of NDDB. This was done under yet another brand name introduced by COMPFED: Safal (literally meaning fruitful, having achieved). Under this name were launched a mango drink sold under tetra pack (also in small 100ml. sizes to be served in aircraft), tomato ketchup, and a mixed fruit jam. In fact, the launches of all these products were completed during a single year, 1998-99. The success of these products was very limited as on the year 2000.
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By the year 2000, the range of products marketed by COMPFED was truly wide: three varieties of milk, flavored milk, buttermilk, four varieties of milk powder, two varieties of butter, five varieties of cheese, two varieties of ghee clarified butter), chocolates, chocolate drink, sweets, ice cream, edible oils and fruit and vegetable based products. Exhibit 5 gives the product portfolio of COMPFED as on the year 2000. At the time of writing this case, COMPFED was launching milk in tetra packs in the market of Mumbai. Except in ice creams, chocolate and chocolate-based beverages, SUDHA brand was the market leader in each and every one of its products. Exhibit 5 also shows the market shares of the various products of COMPFED. Its main sources of competitive advantage were seen by its executives as: (i) low costs due to the elimination of middle men, a lean organization and relatively lower pay scales as compared to MNCs (ii) its scale and scope of operations and (iii) its strong brand name which stood for purity and quality. Out of the total procurement of 4.6 million litres of milk per day by COMPFED, about 2.2 million liters were sold as liquid milk and the rest as milk products. The milk consumption in India in 1999 at about 225 grams per day was still way below that in developed countries, and even less than in many developing countries. The variation in availability between rural and urban areas was strikingly high: 121 grams vs. 400 grams per day. Thus there was a need and scope for increasing the consumption of milk in its liquid form, especially in rural areas, although for every rupee spent, the nutrition value of milk was way below other high protein and fat items, both vegetarian and nonvegetarian. It was expected that by the year 2011-12, the milk production in India would reach 180.76 million tons, and the per capita consumption would be about 547 grams. Exports were negligible: about Rs.271 million in 1999-2000. Out of COMPFEDâ&#x20AC;&#x2122;s total income of Rs.18 billion, approximately Rs.2.75 billion was accounted for by sale of liquid milk; about Rs.3 billion by the sale of edible oils; Rs.4 billion by butter; about Rs.2.4 billion by ice creams; and the rest by the other products. The exact breakup of these products was not available. The share of processed fruits and vegetable items was still quite small.
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The growth rates of COMPFED’s sales in different segments were quite different. The following table gives the approximate growth rates in these segments:
Growth rates in COMPFED’s Businesses 1996-97 Liquid milk procurement Liquid milk Butter Cheese Ghee Milk powder Ice cream Edible oils
(Percent) 1997-98 1998-99 24.6 3.8 3.6 N.A. 14 27 8 N.A. 37 41 31 0 0 N.A. 10 13
0 20
10 13 39 N.A. 18 100 18
(N.A. stands for “not applicable”).
Source: COMPFED Annual reports. The profit margin in milk was generally low, due to the need to keep down the price of this essential commodity, which was also consumed by the poor and the lower middle class. NDDB and COMPFED had, as one of their important objectives, promotion of milk consumption, especially by the poorer people, and hence to achieve its objective, COMPFED endeavored to keep the price of liquid milk as low as it could. Edible oils were also low margin items, their sales prices being controlled rigidly by the government and input prices being essentially set by the oil traders. In the words of Mr. Kurien, they were in this business due to larger societal considerations than for the sake of profits.
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CHAPTER-5
Vendors / Suppliers Analysis Every day SUDHA collects 447,000 litres of milk from 2.12 million farmers (many illiterate), converts the milk into branded, packaged products, and delivers goods worth Rs 6 crore (Rs 60 million) to over 500,000 retail outlets across the country. Milk vendors, the un-organized sector: Today milk vendors are occupying the pride of place in the industry. Organized dissemination of information about the harm that they are doing to producers and consumers should see a steady decline in their importance.
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Any investment idea can do well only when you have three essential ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and marketing) and values (of quality/ethics). The Indian dairy industry, following its deli censing, has been attracting a large number of entrepreneurs. Their success in dairying depends on factors such as an efficient yet economical procurement network, hygienic and cost-effective processing facilities and innovativeness in the market place. All that needs to be done is: to innovate, convert products into commercially exploitable ideas. All the time keep reminding yourself: Benjamin Franklin discovered electricity, but it was the man who invented the meter that really made the money! The Federation's extensive marketing network comprised 3000 distributors and 500,000 retailers spread across the country.
The chart below gives a schematic of the distribution network:
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Manufacturing Units
Carrying & Forwarding Agents
3000 Distributors
Wholesalers
500,000 Retailers/Super Markets
Small/Remote Retailers
Consumer
Alternate channels The company has established a superior quality of relationships with supermarket chains
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and has embarked on a programme to create infrastructure for a Doctor Contact operation. Sales capacity ATFL believes in training and development of it's sales force as well as the distributor's sales force for regularly upgrading skill sets. Information Technology in Sales SUDHA has recently started making investments to improve supply chain capabilities to deliver the right SKU at the right time in right quantities resulting in lower inventory buildups, lower stock-outs and even fresher products to it's consumers.
CHAPTER-6
DEMAND SUPPLY ANALYSIS DEVELOPING DEMAND
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At the time SUDHA was formed, consumers had limited purchasing power, and modest consumption levels of milk and other dairy products. Thus SUDHA adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.
SUPPLY CHAIN ANALYSIS Supply Chain Management is the integration of key business processes from end user through original suppliers that provides pr oducts and information that add value for Customers (Global Supply Chain Forum). SUDHA
is striving to fulfill these functionalities. Our current focus areas are Demand Planning,
Production Planning, Inbound Logistics (Raw Materials), Outbound Logistics (Finished Goods), Material Handling, Warehouse Management and Reverse Logistics.
The Logistics Mission is to continuously identify and establish leaner Supply Chains through use of appropriate technologies and manage operations through these chains to enhance
SUDHA's
competitive
position.
This is also, to integrate operations across the extended Supply Chains, to reap the dual benefits of Supply Chain efficiencies and incremental sales. Its supply chain is easily one of the most complicated in the world. How do managers at SUDHA prevent the milk from souring? Walk in to any SUDHA or Gujarat Cooperative Milk Marketing Federation (COMPFED) office, and you may or may not see a photograph of Mahatma Gandhi, but you will certainly see one particular photograph. It shows a long line of Gujarati women waiting patiently for a union truck to come and collect the milk they have brought in shining brass matkas.
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The picture is always prominently displayed. The message is clear: never forget your primary customer. If you don't, success is certain. The proof? A unique, Rs 2,200 crore (Rs 22 billion) enterprise. SUDHA products are available in over 500,000 retail outlets across India through its network of over 3,500 distributors. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products. COMPFED transacts on an advance demand draft basis from its wholesale dealers instead of the cheque system adopted by other major FMCG companies. This practice is consistent with COMPFED's philosophy of maintaining cash transactions throughout the supply chain and it also minimizes dumping. Wholesale dealers carry inventory that is just adequate to take care of the transit time from the branch warehouse to their premises. This just-in-time inventory strategy improves dealers' return on investment (ROI). All COMPFED branches engage in route scheduling and have dedicated vehicle operations.
Umbrella brand The network follows an umbrella branding strategy. SUDHA is the common brand for most product categories produced by various unions: liquid milk, milk powders, butter, ghee, cheese, cocoa products, sweets, ice-cream and condensed milk. SUDHA's sub-brands include variants such as SUDHAspray, SUDHAspree, SUDHA and NutrSUDHA. The edible oil products are grouped around Dhara and Lokdhara, mineral water is sold under the Jal Dhara brand while fruit drinks bear the Safal name. By insisting on an umbrella brand, COMPFED not only skillfully avoided inter-union conflicts but also created an opportunity for the union members to cooperate in developing products.
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Managing the supply chain Even though the cooperative was formed to bring together farmers, it was recognised that professional managers and technocrats would be required to manage the network effectively and make it commercially viable.
Coordination Given the large number of organisations and entities in the supply chain and decentralised responsibility for various activities, effective coordination is critical for efficiency and cost control. COMPFED and the unions play a major role in this process and jointly achieve the desired degree of control. Buy-in from the unions is assured as the plans are approved by COMPFED's board. The board is drawn from the heads of all the unions, and the boards of the unions comprise of farmers elected through village societies, thereby creating a situation of interlocking control. The federation handles the distribution of end products and coordination with retailers and the dealers. The unions coordinate the supply side activities. These include monitoring milk collection contractors, the supply of animal feed and other supplies, provision of veterinary services, and educational activities.
Managing third party service providers From the beginning, it was recognised that the unions' core activity lay in milk processing and the production of dairy products. Accordingly, marketing efforts (including brand development) were assumed by COMPFED. All other activities were entrusted to third parties. These include logistics of milk collection, distribution of dairy products, sale of products through dealers and retail stores, provision of animal feed, and veterinary services.
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It is worth noting that a number of these third parties are not in the organized sector, and many are not professionally managed with little regard for quality and service. This is a particularly critical issue in the logistics and transport of a perishable commodity where there are already weaknesses in the basic infrastructure. The main building blocks for the strategy for the next few years are: •
Maximizing Customer Service
•
Consensus Forecasting/Lean inventory management / Continuous Replenishment
•
Reducing Distribution costs and Damages across the Supply Chains
•
Supporting top-line improvement through appropriate Product Availability.
CHAPTER-7
R & D ACTIVITIES 122
Technology and e-initiatives COMPFED's technology strategy is characterized by four distinct components: new products, process technology, and complementary assets to enhance milk production and e-commerce. Few dairies of the world have the wide variety of products produced by the COMPFED network. Village societies are encouraged through subsidies to install chilling units. Automation in processing and packaging areas is common, as is HACCP certification. SUDHA actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increases in milk yields. COMPFED was one of the first FMCG (fast-moving consumer goods) firms in India to employ Internet technologies to implement B2C commerce. Today customers can order a variety of products through the Internet and be assured of timely delivery with cash payment upon receipt. Another e-initiative underway is to provide farmers access to information relating to markets, technology and best practices in the dairy industry through net enabled kiosks in the villages. COMPFED has also implemented a Geographical Information System (GIS) at both ends of the supply chain, i.e. milk collection as well as the marketing process. Farmers now have better access to information on the output as well as support services while providing a better planning tool to marketing personnel.
Integrated Industry Information Service Facilitate decision-making at various levels in cooperative institutions with the help of an extensive on-line computer network that analyses relevant data obtained from :
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- Village Dairy Cooperative Societies - District Milk Producers' Unions - State Milk Marketing Federations - NDDB - Research Institutions and others
National Database Generate data on following : - Milk supply (producer, animal and village data) - Milk and milk product demand (consumer and urban data) - Performance data (societies, unions and federations) - Secondary data (domestic and international)
Geographical Information System Monitor following field activities : - Milk procurement - Veterinary health care - Artificial Insemination - Society information
Policy Research Take up problem specific and area specific need-based special studies for policy support Conduct regular field studies concerning business interest
Establishing best practices
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A key source of competitive advantage has been the enterprise's ability to continuously implement best practices across all elements of the network: the federation, the unions, the village societies and the distribution channel. In developing these practices, the federation and the unions have adapted successful models from around the world. It could be the implementation of small group activities or quality circles at the federation. Or a TQM program at the unions. Or housekeeping and good accounting practices at the village society level. More important, the network has been able to regularly roll out improvement programs across to a large number of members and the implementation rate is consistently high. For example, every Friday, without fail, between 10.00 a.m. and 11.00 a.m., all employees of COMPFED meet at the closest office, be it a department or a branch or a depot to discuss their various quality concerns. Each meeting has its pre-set format in terms of Purpose, Agenda and Limit (PAL) with a process check at the end to record how the meeting was conducted. Similar processes are in place at the village societies, the unions and even at the wholesaler and C&F agent levels as well. Examples of benefits from recent initiatives include reduction in transportation time from the depots to the wholesale dealers, improvement in ROI of wholesale dealers, implementation of Zero Stock Out through improved availability of products at depots and also the implementation of Just-in-Time in finance to reduce the float. Kaizens at the unions have helped improve the quality of milk in terms of acidity and sour milk. (Undertaken by multi-disciplined teams, Kaizens are highly focussed projects, reliant on a structured approach based on data gathering and analysis.) Regional preferences are an important basis, for developing products and their manufacturing processes. In addition equipment has been designed and commercialised for manufacturing indigenous milk products like shrikhand, paneer, khoa, lassi, gulab
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jamun, mishti doi and curd as well as popular western products like ice-creams and cheeses In developing process, product and equipment technology, emphasis is placed on maintaining high quality standards. To check milk quality, test kits have been developed. SUDHA also provides services for analysis of dairy product samples. SUDHAâ&#x20AC;&#x2122;s Engineering Services Group provides technical assistance and engineering inputs for execution of projects on either turnkey or on consultancy basis. Clients include milk producers' and oilseed growers' cooperative unions and federations, the central and state governments as well as organisations abroad. Services offered include setting up dairy plants, chilling centres, cattle feed plants, infrastructure facilities for allied and agro-based industry projects. SUDHA has also exhibited its engineering and project management expertise in execution of turnkey projects in other areas like Fruit and Vegetable Project, automatic bulk milk vending system, FMD vaccine plant, High Security Animal Disease Research Laboratory etc. As of July 2001, more than 500 projects have been successfully completed. Engineering Services strive to add value to the projects it undertakes by blending the latest technology with indigenously designed, standard dairy equipment. Vendor development and standardising specifications of equipment for dairy and allied projects is undertaken by the Board's well-qualified engineers. For example, Sabar Union's records show a reduction from 2.0% to 0.5% in the amount of sour milk/curd received at the union. The most impressive aspect of this large-scale roll out is that improvement processes are turning the village societies into individual improvement centers. SUDHA carries out extensive research and development activities in Biotechnology aimed at developing formulations and technologies useful for improving the productivity of milch animals. In 1979, the Dairy Board set up an Animal Disease Diagnostic Laboratory at Anand to undertake scientific research activiites. NDDB has expanded its research activities to include Animal Genetics, Animal Health and Animal Nutrition for supporting its Productivity Enhancement programme for dairy cooperatives. 126
Equipped with in-house research facilities and managed by qualified scientists, the Animal Health Section of the Laboratory is recognised as a Centre of Excellence for research on Foot & Mouth Disease and Bovine Tropical Theileriosis. In addition to its ongoing R&D activities, NDDB offers consultancy services and training programmes to breeding organisations, cattle feed plants, disease diagnostic laboratories, vaccine manufacturing units as well as to national and international government and non-government organisations. Training is offered in the areas of cytogenetics, molecular genetics, embryo transfer, animal feed formulations, clinical diagnosis, control of parasitic diseases and other related areas of biotechnology. In today's increasingly competitive environment, the success of dairy cooperatives depends on their people. Boards, chief executives, managers, field staff, workers must all match or exceed the competence and commitment of their counterparts in investor-owned organisations. Supporting cooperatives with technical training and professional expertise has long been an NDDB priority. Over the years, the Dairy Board has developed both the physical infrastructure, the experience, the methods and training skills necessary to fulfill this responsibility. SUDHA offers a variety of training programmes as well as on-demand consultancy in various technical and functional areas. The scope of training and consultancy ranges from cooperative institution building to market studies and development, from dairy plant management to feasibility and impact studies. Training programmes are designed inhouse and are conducted by SUDHA personnel who are specialists in the field. Most training programmes are designed exclusively for cooperative organisations. Some consultancy services and selected training programmes are also offered to other organisations.
CHAPTER-8
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KEY STAFF ORGANISATION STRUCTURE Organization structure is a basic frame work within which the manager decision making behaviors takes place. The structure basically deals with the relation ships. It is an important scientific concept.
In a simple term, a structure is a pattern in which various parts or components are interrelated or inter connected. Thus organization structure is the pattern of relationship any various components or parts of the organization. The prescribes the relationship among various activities and positions. The structure , being abstract, is not visible in the same way as a biological or mechanical structure , through it can be inferred or the actual operation and the behavior of the organization. The problem identifying a structure from organization processes does not mean that there is the difference between the two. There is a basic difference between two and distinction is important in understanding the concept and design of organization structure. The structure of a system is the arrangement of a sub- system and components at a given moment of a time. Process is dynamic change in the matter, energy, or information of te system over time. Thus the concept of the structure and the dynamic features and both of these aspects rather than opposite. Thus organization structure can be viewed as established pattern of relationship among the components of the organization.
In the large and complex
organization a structure is set forth initially by the design of major components or sub systems and then by establishing relationship among the sub-system. It is the patterning of these relationships which some degree of permanency which is referred to as organization structure. Design of basic structure involves such issues as how the work of the organization will be divided and assigned among various position, groups division, departments, etc. and how 128
the co-ordination necessary to accomplish total organization structure people create relationship in department of the formal relationships, known as informal relationships of an origination. The organization structure, truly speaking is the totally of both formal and informal relationships. Organization structure is of capable of serving many functions to the sometime, but cannot serve all function equally well over united time. A structure created for one purpose may not serve other purpose well.
CODE OF ETHICS AND BUSINESS CONDUCT Introduction The Company is committed to conducting its business in accordance with the applicable laws, rules and regulations and with highest standards of business ethics. This code is intended to provide guidance and help in recognizing and dealing with ethical issues, provide mechanisms to report unethical conduct, and to help foster a culture of honesty and accountability. Each officer is expected to comply with the letter and spirit of this Code. The officers of the Company must comply with applicable laws, rules and regulations. They must abide by the policies and procedures that govern the conduct of the Company's business. They shall act and conduct free from fraud and deception. Their responsibilities include commitment to compliance, and to maintain a work environment that encourages the stakeholders to raise concerns to the attention of the management. They shall act in good faith, responsibility, with due care, competence and diligence without misrepresenting material facts. All Officers are expected to read and understand this Code of Business Conduct and Ethics, uphold these standards in day-to-day activities, comply with all applicable policies and procedures. Because the principles described in this Code of Business Conduct and Ethics are general in nature, you should also review all applicable Companyâ&#x20AC;&#x2122;s rules, policies and procedures.
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All Officers shall certify annually that they have complied with this Code. On the basis of certification by all Officers, two Managing Directors of the Company, namely, Shri Rajesh, R. Gandhi and Shri Devanshu L. Gandhi, will give the declaration to this effect and the declaration will be published in the Annual Report of the Company.It is also necessary to circulate this Code to the employees who are working under respective Officers of the Company to read, understand and comply with this Code and enable them to use Whistle Blower mechanism as mentioned below.
Conflicts of Interest A conflict of interest exists where the interest or benefits of one person or entity conflict with the interests or benefits of the Company. A conflict situation can arises: A) When an officer takes action or has interests that may make it difficult to perform his or her work objectively and effectively, B) Any outside business activity that detracts an individual's ability to devote appropriate time and attention to his or her responsibilities with the Company, C) Any significant ownership interest in any supplier, customer, business associate or competitor of the Company, D) Any consulting or employment relationship with any supplier, customer, business associate or competitor of the Company. The officers should be scrupulous in avoiding 'conflicts of interest' with the Company. The officers should ensure that their services do not in any manner affect the Companyâ&#x20AC;&#x2122; interest. In case there is likely to be a conflict of interest, he/she should make full disclosure of all facts and circumstances thereof to Managing Directors of the Company and a prior written approval should be obtained. It is a conflict of interest to serve as a Director of any Company that competes with the Company. 130
Officers and Emplyees must first obtain approval from the Managing Directors before accepting a Directorship.
Corporate Opportunities Officers owe a duty to the Company to advance its legitimate interests when the opportunity to do so arises. Officers are expressly prohibited from : A) Taking for themselves personally, opportunities that are discovered through the use of Company's property, information, or position, B) Competing directly with the business of the Company or with any business that the Company is considering, C) Using Company's property, information, or position for personal gain.
Confidentiality The officers shall maintain the confidentiality of confidential information of the Company or that of any customer, supplier or business associate of the Company to which Company has a duty to maintain confidentiality, except when disclosure is authorized or legally mandated. The Confidential information includes all non-public information (including private, proprietary, and other) that might be of use to competitors or harmful to the Company or its associates. The use of confidential information for his/her own advantage or profit is also prohibited.
Fair Dealing Each officer should deal fairly with customers, suppliers, competitors, and mployees of group companies. They should not take unfair advantage of anyone through
131
manipulation, concealment, abuse of confidential, proprietary or trade secret information, misrepresentation of material facts, or any other unfair dealing-practices. Officers are required not to enter into agreements, discussions with competitors about any matter relating to competition between the Company and its competitor, such as products, sales prices, marketing strategies, market shares and allocation of market, territories, supply and sources or customers, nor enter into any agreement with competitors that affect prices and constitute illegal priceâ&#x20AC;&#x201C; fixing prohibited under the Competition laws. Competition laws generally address the following areas: pricing practices (including price discrimination), discounting, terms of sale, credit terms, promotional allowances, secret rebates, exclusive dealerships or distributorships, product bundling, restrictions on carrying competing products, termination, and many other practices. In all contacts with competitors, officers should not discuss pricing policy, contract terms, costs, inventories, marketing and products plans, surveys and studies and other proprietary and confidential information. Discussion of these subjects or collaboration on them with competitors can be illegal. Also, officers should ensure that distributors, dealers, stockist or agents selling the Companyâ&#x20AC;&#x2122; products, should enter into any accepted practices, like bundling of products, discounts on the market price, free gifts etc., only with the express permission of the Company.
Related parties As a general rule, Officers and Employees should avoid conducting Company business with a relatives or with a business in which a relative is associated in any significant role. The Company discourages the employment of relatives of Officers and Employees in positions or assignments within the same Department. Further, the Company prohibits the employment of such individuals in positions that have a financial dependence or influence.
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Protection and Proper Use of Company's Assets All officers should protect Company's assets and property and ensure its efficient use. Theft, carelessness, and waste of the Company's assets and property have a direct impact on the Company's profitability. Company's assets should be used only for legitimate business purposes. All officers shall have a responsibility to protect the assets of the Company, ensure optimal utilization of assets and to report and record all transactions. All officers should protect the Companyâ&#x20AC;&#x2122; assets from loss, damage, misuse or theft and assets may only be used for business purposes and other purposes specifically approved by management and must never be used for illegal purposes. Officers who have access to proprietary and confidential nformation must take every precaution to keep it confidential. Every officer should protect the reputation of the Company, its employees and its products. Officers should never make any false or artificial entries in any records.
Intellectual Property Policy All officers have an utmost obligation to themselves to identify and protect the intellectual properties, trade secrets and other confidential information owned by the Company and its clients or associates because it is critical to Companyâ&#x20AC;&#x2122;s success. By "Intellectual Property Rights (IPR), we mean generally patented or potentially patentable inventions, trademarks, service marks, trade names, copyrightable subject matter, and trade secrets.
Compliance with Laws, Rules and Regulations The officers shall comply with all applicable laws, rules, and regulations. Any officer who is unfamiliar or uncertain about the legal rules involving Company business 133
conducted by him/her should consult the legal department of the Company before taking any action that may jeopardize the Company or that individual. No officers subject to this Code shall commit an illegal or unethical act, or instruct others to do so, for any reason.
Accounting Practices The Company’s responsibilities to its stockholders and the investing public require that all transactions be fully and accurately recorded in the Company’s books and records in compliance with all applicable laws. All required information shall be accessible to the Company’s Auditors and government agencies. False or misleading entries, unrecorded funds or assets, or payments without appropriate supporting documents and approval are strictly prohibited. There shall be no willful omissions of any Company transactions from the books and records. All officers shall make full, fair, accurate, timely, and understandable disclosure in reports and documents that the Company files with, or submits or makes periodically, to the shareholders, government authorities, and to the public. Any wilful material misrepresentation of and/or misinformation of the financial accounts and reports shall be regarded as a violation of the Code.
Policy against Insider Trading Insider Trading generally involves the act of subscribing or buying or selling of the Company’s securities, when in the possession of any Unpublished Price Sensitive Information about the Company. It also involves disclosing any Unpublished Price Sensitive Information about the Company to others who could subscribe or buy or sell the Company’s securities. Insider Trading invokes severe civil and criminal penalties not only on the Insider but also on the Company in certain circumstances under the Regulations issued in India under the Securities and Exchange Board of India (SEBI) Act, 1992. “sensitive information” is information which relates directly or indirectly to a Company and which if published is likely to materially affect the price of Securities of a Company. It is important to note that both positive and negative information could be
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price sensitive. All officers subject to this Code must comply with the Insider Trading Policy. Any violation of this requirement is a violation of this Code.
Maintaining and Managing Records The Company is required by the central, local, state, federal, foreign and other applicable laws, rules and regulations, to retain certain records and to follow specific guidelines in managing its records.
Workplace free of harassment The Company is committed to providing a work environment free of unlawful harassment. Company policy porhibits sexual harassment and harassment based on medical conditions, race, religious creed, colour, national origin or ancestry, physical or mental disability, marital status, age, or any other basis protected by state or local law or ordinance or regulation. All such harassment is unlawful.
Drug and Alcohol Abuse To meet our responsibilities to employees, customers and investors, the Company must maintain a healthy and produtive work environment. Misusing controlled substances, or selling,distributing, possessing, using or being under the influence of illegal drugs and alcohol on the job is absolutely prohibited.
Safety in Workplace The safety of people in the Workplace is a primary concern of the Company. Each officers and employees must comply with all applicable health and safety laws. The Company maintain compliance with all local laws to help maintain secure and healthy work surroundings.
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Dress Code Because each officer and employee is a representative of the Company in the eyes of the public, each officers and employees must report to work properly groomed and wearing appropriate clothing. Employees are expected to dress neatly and in a manner consistent with the nature of the work peformed.
Others (i) To use reasonable care and skill in the discharge of duties and responsibilities and exercise of powers for the benefit and prosperity of the Company. (ii) To have a clear understanding of the aims and objectives, capabilities and capacity and various policies of the Company. (iii) To act in accordance with the highest standards of integrity and ethical conduct while dealing with women employees and the female gender in general and to avoid all actions or inactions leading to any kind of sexual harassment. (iv) To promote professionalism in the Company. (v) Not to charge personal expenses to the Company.
Compliance with Code of Conduct and Whistle Blower Policy/Mechanism If any officer who knows of or suspects of a violation of applicable laws, rules or regulations or this Code of conduct, he/she must immediately report the same to the Managing Directors of the Company. Such person should as far as possible provide the
136
details of suspected violations with all known particulars relating to the issue. The Company recognizes that resolving such problems or concerns will advance the overall interests of the Company that will help to safeguard the Company's assets, financial integrity and reputation. Managing Directors of the Company shall determine appropriate action in response to violations of this Code of Ethics. This also forms part of Whistle Blower mechanism for employees to report to Managing Directors of the Company about unethical behaviour, actual or suspected fraud or violation of the Companyâ&#x20AC;&#x2122;s code of conduct or ethics policy. This mechanism can also provide for adequate safeguards against victimization of employees who avail of the mechanism and also provide for direct access to the Chairman of Audit Committee in exceptional cases.
Interpretation of Code Any question or interpretation under this Code of Ethics and Business Conduct will be handled by Managing Directors of the Company. The Managing Directors has the authority to waive compliance with this Code of business conduct for any officer of the Company. Therefore , it is important for managers to determine the put comes desired from Organization structure and to match the organization with charging needs with multiple needs to roles of originations structure is balance will have to be struck and priorities established in the operation of the organization meets.
In general there
can be following roles or organization structure.
Facilitating management activities 1. encouraging efficiency 2. communication 3. optimum use of organization structure
Features of good organization structure:
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1. Simplicity 2. Flexibility 3. Clear line authority 4. Application of ultimate responsibity 5. Proper delegation of authority 6. Minimum possible managerial levels. 7. Principles of unity of direction and communication 8. Proper emphasis on staff. 9. Provision for top manager
Factor effecting organization structure: There are various factor which determine the effectiveness of an Organization structure. They are: 1. Environment 2. Strategy 3. Technology 4. Size 5. People
SUDHA: SUDHA has flat structure in their organization. The communication in the organization is clear as well as the organization structure is also very clear in all the direction. So, SUDHA having proper way of communication in the organization so, that is why SUDHA is a successful company in India as well as in the abroad
(1)
MANAGERIAL HIERARCHY
In today's increasingly competitive environment, the success of dairy cooperatives depends on their people. Boards, chief executives, managers, field staff, workers must all
138
match or exceed the competence and commitment of their counterparts in investor-owned organisations. Supporting cooperatives with technical training and professional expertise has long been an NDDB priority. Over the years, the Dairy Board has developed both the physical infrastructure, the experience, the methods and training skills necessary to fulfill this responsibility. SUDHA offers a variety of training programmes as well as on-demand consultancy in various technical and functional areas. The scope of training and consultancy ranges from cooperative institution building to market studies and development, from dairy plant management to feasibility and impact studies. Training programmes are designed inhouse and are conducted by SUDHA personnel who are specialists in the field. Most training programmes are designed exclusively for cooperative organizations. Some consultancy services and selected training programmes are also offered to other organizations.
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The managerial Hierarchy of SUDHA is as following :
CHAIRMAN DR. K.K.SHARMA
(CHAIRMAN)
12. CO-OPERATIVE’S CHAIRMAN SHRI S.K.CHANDRA
(CHAIRMAN)
Kaira dist. Co-operative milk producers’ union ltd. Anand Shri GOVIND BHAI PATEL.
(CHAIRMAN)
Sabarkantha dist. Co-operative milk producers’ union ltd Himatnagar SHRI NARINDRA BHAI PATEL
(CHAIRMAN)
Baroda dist. Co-operative milk producers’ union ltd Baroda SHRI BHUPENDRA SINGH P. SOLANKI (CHAIRMAN) Panchmahal dist. Co-operative milk producers’ union ltd Panchmahal SHRI GOVIND BHAI S. RAM PARIYA
(CHAIRMAN)
Rajkot dist. Co-operative milk producers’ union ltd Rajkot 140
SHRI PRAHALAD BHAI M. PATEL
(CHAIRMAN)
Bharuch dist. Co-operative milk producers’ union ltd Bharuch SHRI MOTI BHAI R. CHUDHARY
(CHAIRMAN)
Mehsana dist. Co-operative milk producers’ union ltd Mehsana SHRIPARTHI BHAI G. BHATOL
(CHAIRMAN)
Banskantha dist. Co-operative milk producers’ union ltd Banaskantha SHRI MANU BHAI A. PATEL
(CHAIRMAN)
Surat dist. Co-operative milk producers’ union ltd Surat SHRI NAVAGHAN BHAI C. BHARWAD
(CHAIRMAN)
Ahmedabad dist. Co-operative milk producers’ union ltd Ahmedabad SHRI MONGHA BHAI M. DESAI
(CHAIRMAN)
Valsad dist. Co-operative milk producers’ union ltd Valsad SHRI DASHARATH BHAI N. PATEL
(CHAIRMAN)
Gandhinagarn dist. Co-operative milk producers’ union ltd Gandhinagar SHRI B. M. BYAS (MANAGING DIRECTOR)
GENERAL MANAGER MARKETING
K. M. JHALA
FINANCE
J. M. SONI
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TECHNICAL
M. M. VYAS
ZONAL INCHARGE
MANOJ KARKI
ZONAL ACCOUNTENT
H. S. RATHORE
(2) DUTIES & RESPONSIBILITIES OF KEY STAFF In today's increasingly competitive environment, the success of dairy cooperatives depends on their people. Boards, chief executives, managers, field staff, workers must all match or exceed the competence and commitment of their counterparts in investor-owned
142
organisations. Supporting cooperatives with technical training and professional expertise has long been an NDDB priority. Over the years, the Dairy Board has developed both the physical infrastructure, the experience, the methods and training skills necessary to fulfill this responsibility. SUDHA offers a variety of training programmes as well as on-demand consultancy in various technical and functional areas. The scope of training and consultancy ranges from cooperative institution building to market studies and development, from dairy plant management to feasibility and impact studies. Training programmes are designed inhouse and are conducted by SUDHA personnel who are specialists in the field. Most training programmes are designed exclusively for cooperative organizations. Some consultancy services and selected training programmes are also offered to other organizations.
CHAPTER-9
HUMAN RESOURCE POLICY Policies are the broad guidelines as to how the objectives of a business are to be achieved. While the objectives provide the ends, which a manager should try to achieve, policies provide the guidelines which he should keep in mind while achieving the ends. A policy is
143
an established guiding canon premised on objective devised to govern the activities of the business enterprise and from which the basic percepts of conduct are derived. A policy is designed to guide the organizational members to deal with a particular situation in a particular manner. It delimits the area in which the decision is to be made and assures that the decision will be consistent with and contributive to business objectives. The important features of policy can be stated as under:
• BASED ON OBJECTIVES Policies are based on the objectives of the enterprise, as these are guidelines to achieve the predetermined objectives.
• GENERAL AND SPECIFIC POLICIES Policies are general, covering the whole organization, as well as specific, relating to a particular department or a activity.
• POLICIES MAY BE IMPLIED All policies may not be statements. Some of policies are based on practices. Thus, human resource policies can be interpreted as the recognized intentions of top management with respect to the efficient management of workforce. Following are the human resource policies with regard to all functions of human resource management adopted at SUDHA:
Functions performed by HR division •
Human resource planning
•
Recruitment and selection
•
Training and development 144
•
Employee assistance
•
HR research and audits
•
Motivation functions
EMPLOYMENT POLICIES 1.Minimum Hiring Qualifications Vacancies in SUDHA are filled through direct recruitment from the open market and through promotions. The minimum eligibility criteria in SUDHA have been laid down depending upon the nature of work, responsibilities and duties etc
2. Preferred sources of recruitment Vacancies in SUDHA are filled through direct recruitment from open market and through internal promotions and selections.
3. Procedure followed for recruitment (a) Determination of vacancies (b) Distribution of vacancies between general and reserved categories. (c) Issue of employment notice/advertisement inviting application from the candidates. (d) Applications received in response to employment notice/advertisement are screened with reference to eligibility criteria for the post.
4. Reliance on various selection devices such as tests, reference checks and interviews (a) After preliminary screening of applications the eligible candidates are Provisionally to appear for written/trait test. (b) The candidates who qualify the written test/trait test are called for personal interview. (c) The interview is conducted by a duely constituted interview board. (d) The candidates who are found suitable for the posts by interview board 145
are empanelled in order of their merit. (e) The candidates are offered appointment for the post subject to their merit in the panel and availability of vacancies. (f) Finally the candidates are appointed in the company after completion of pre employment formalities.
TRAINING AND DEVELOPMENT POLICIES 1. Identification of training needs Training needs are identified on the basis of organizational analysis, jobAnalysis and manpower analysis.Specifically the need for training arises With to the following objectives: (a) To match employee specification with the job requirements and
organisational needs
(b) Organisational viability and transformation process. (c) Technological advancement (d) Organisational complexity (e) Human relations
2. Types of training Employees posted in different departments in SUDHA viz technical/non technical undergo following types of training: Some of the training programs for technical employees are listed here under: (a) Basic aviation course (b) Technician course (c) Familiarization course in refrigeration and cooling technology etc.
Some of the training program for non technical employees are listed below:
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(a) Professional development program (b) Induction program (c) Dynamics of production teams Programs are also conducted for executive development in SUDHA.
TRANSFER AND PROMOTION POLICIES 1. Rational of transfer SUDHA has well defined transfer policy for its employees. employees are transferred from one station to another and from one department/section another to fill the vacancies or shoulder the higher responsibilities.
2. Periodicity of transfer Normally the employees are transferred from one station to another for a period ranging from 1-3 years. When employees are transferred from one station to another by the management they are eligible for transfer benefits as per the rules of the company.
3. Promotion policy Employees in different cadres are promoted to the higher posts subject to fulfilling certain conditions viz. seniority, length of service, satisfactory service records etc. In certain cadres employees are promoted to the higher posts in a time bound manner. For some posts internal employment notification are issued inviting applications from internal candidates. These candidates are subjected to written tests/interview before they are promoted to higher post subject to their suitability and number of vacancies.
COMPENSATION POLICIES 1. Incentive plans There are various incentive plans for the employees of NACIL (I) as per their designation and responsibilities in the organization. The incentive plans include overtime, bonuses
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and other various kinds of such benefits. There are certain guidelines to be followed for working overtime which are as under: (a)The shift should be so arranged as to ensure that no employee is made to work for more than 38 hours or 44 hours or 48 hours in a week. (b)Also a minimum rest period of 11 hours should be there before an employee is called upon to work in succeeding shifts. Apart from the overtime various kinds of bonuses are also provided to the employees on major festivals. There is a scheme in SUDHA to give incentives to the employees linked to productivity.
2. Non monetary rewards Non monetary rewards are those which do not involve any kind of financial benefit to the employees. Some of the non monetary benefits in SUDHA are recognition of good work, appreciation letter, providing challenging work assignments to the employees etc.
INTEGRATION AND HUMAN RELATIONS POLICIES 1. Handling of grievances A grievance is any kind dissatisfaction or disagreement relating to any employee arising out of the implementation of the policies, rules and regulations, or decisions of the organization. An aggrieved employee may not perform the assigned job in the effective manner. Therefore, grievance redressal machinery is existing in SUDHA to redress the grievances of the employees.
2. Workers participation in management Employees viewpoints and opinions are also often considered to arrive at a major decision related to the company.
3. Discipline
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Discipline is some sort of a strict training or the enforcing of rules, intended to produce ordered and controlled behavior in oneself or others. There are two sets of standing orders framed by the company for in the company so that production and productivity do not suffer.
enforcing discipline
In the two sets of standing orders there is a illustrative list of misconducts. When an employee commits misconduct in the company a departmental enquiry is conducted as per the laid down procedure. If an employee is found guilty of the charges a punishment commensurate to the misconduct committed by the employee is imposed upon him.
4. Working conditions and welfare policies Welfare is basically the efforts made so as to ensure well being status and to help or facilitate one so that he/she can achieve his highest performance as well as personal satisfaction. The following Acts contains the provisions to provide mandatory welfare facilities to the employees: (i) Workmen Compensation Act, 1923 In case of a temporary or permanent injury, caused to an employee while in service, the organization has to provide the compensation to the employee. (ii) Payment of Wages Act, 1936 Earlier wages were not paid on time. According to this act, the wages and salaries will be paid on fixed time and all the deductions done would be told to the employees. (iii) Industrial Disputes Act, 1947 According to this act, a committee known as works committee is formed which deals with the welfare of the employees at the grass root level. The members of this committee are 50% from the employerâ&#x20AC;&#x2122;s side and 50% from the employeeâ&#x20AC;&#x2122;s side. (iv) Factories Act, 1948 This act takes care of the service conditions, work environment etc. given to the employees. It also keeps a check on the working hours and action is taken whenever the regulations are violated.
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(v)
Employees State Insurance Act, 1948
According to this act, if the employee or his family members are sick then the company looks after their health i.e., most of the money is given by SUDHA. (vii) Payment of Gratuity Act, 1972 SUDHA can pay a maximum of 3.5 lakhs as gratuity. This is statutory and deviation is possible.
TRAINING PROCEDURE Training is the organizationâ&#x20AC;&#x2122;s internal agent. The focus of this function is to enhance the personal qualities of the employees to improve organizational productivity. This function also counsels the employees and helps them in making a better career choice and in finding ways to achieve the desired goals. JBM Auto Limited follows the following procedure for providing training:
Identifying training needs: To provide training on any topic, initially training needs of the employees are identified through various methods like competency mapping and skill matrix.
Training Plan: Based on the above identification of individual training needs, an annual training calendar is prepared by HRD division that contains competencies and the months in which the training programmes will be conducted. Following the training calendar monthly training plan is formulated to include Date and time of programme Venue of programme Proposed faculty Proposed course Number of participants 150
Evaluation During the training programme, attendance sheet is being filled by all the participants in order to maintain a record of the members attended the training. After the training the participants are given feedback forms so as to know the extent to which they have taken interest and gained knowledge.
Methods for Identification of Training Need of Employees. Competency Gap Analysis: This exercise is undertaken in the organization annually with the help of multi-rater feedback system. The purpose of this initiative is it identifies developmental needs of employees. It is a practice for identifying gap of required and existing level of competencies first one is Technical Competencies, Second one is Behavioral Competencies among various individuals. This is done for the executives and above category members of the organization.
Skill Matrix (Staff & Permanent Worker): This is another method for identifying the present level of skills in the employees regarding their work needs. This process is followed for the employees below executive level including the shop floor workers. The skills and the levels are identified by the head of department
Practical test and recommendation by the HOD: In this training needs identified just on the basis of the recommendation of the immediate supervisor or the immediate HOD.
PERSONNEL AND HR ACTIVITIES:
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Human resource development and personnel departments ha very thin line if differentiation. HRD is concerned with development activities including training and development, performance appraisal, recruitment, reward management etc. On the other hand personnel department has control over maintenance and welfare function inclusive of welfare, safety, security etc. Company has corporate HRD and plant HRD. Corporate is responsible for the formulation of Hr policies whereas plant HRD is responsible for the implementation of these policies
The main HR and personnel activities are: 1. Training and development 2. Recruitment and selection 3. Reward operations 4. Welfare facilities 5. Safety and security 6. Medical facilities 7. Counseling 8. Telephone operating 9. Attendance maintaining 10. Leaves and pension records
CHAPTER-10
MARKETING POLICY
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" If SUDHA has become a successful brand - if, in the trade lingo, it enjoys brand equity - then it is because we have honored our contract with consumers for close to fifty years. If we had failed to do so, then SUDHA would have been consigned to the dustbin of history, along with thousands of other brands. For close to fifty years now, SUDHA has honored its contract with the consumer. The contract that is symbolized by the SUDHA brand means quality. It means value for money. It means availability. And it means service."
Varghese Kurien, COMPFED
MARKET POLICIES The moppet who put SUDHA on India's breakfast table 50 years after it was first launched, SUDHA's sale figures have jumped from 1000 tonnes a year in 1966 to over 25,000 tonnes a year in 1997. No other brand comes even close to it. All because a thumb-sized girl climbed on to the hoardings and put a spell on the masses. Bombay: Summer of 1967. A Charni Road flat. Mrs. Sheela Mane, a 28-year-old housewife is out in the balcony drying clothes. From her second floor flat she can see her neighbours on the road. There are other people too. The crowd seems to be growing larger by the minute. Unable to curb her curiosity Sheela Mane hurries down to see what all the commotion is about. She expects the worst but can see no signs of an accident. It is her four-year-old who draws her attention to the hoarding that has come up overnight. "It was the first SUDHA hoarding that was put up in Mumbai," recalls Sheela Mane. "People loved it. I remember it was our favourite topic of discussion for the next one week! Everywhere we went somehow or the other the campaign always seemed to crop up in our conversation." Call her the Friday to Friday star. Round eyed, chubby cheeked, winking at you, from strategically placed hoardings at many traffic lights. She is the SUDHA moppet everyone loves to love (including prickly votaries of the Shiv Sena and BJP). How often have we stopped, looked, chuckled at the SUDHA hoarding that casts her sometime as the coy,
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shy Madhuri, a bold sensuous Urmila or simply as herself, dressed in her little polka dotted dress and a red and white bow, holding out her favourite packet of butter. For 30 odd years the Utterly Butterly girl has managed to keep her fan following intact. So much so that the ads are now ready to enter the uinness Book of World Records for being the longest running campaign ever. The ultimate compliment to the butter came when a British company launched a butter and called it Utterly Butterly, last year. It all began in 1966 when Sylvester daCunha, then the managing director of the advertising agency, ASP, clinched the account for SUDHA butter. The butter, which had been launched in 1945, hadboring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads. In India, food was something one couldn't afford to fool around with. It had been taken too seriously, for too long. Sylvester daCunha decided it was time for a change of image. The year Sylvester daCunha took over the account, the country saw the birth of a campaign whose charm has endured fickle public opinion, gimmickry and all else. The SUDHA girl who lends herself so completely to SUDHA butter, created as a rival to the Polson butter girl. This one was sexy, village belle, clothed in a tantalising choli all but covering her upper regions. "Eustace Fernandez (theart director) and I decided that we needed a girl who would worm herway into a housewife's heart. And who better than a little girl?" says ylvester daCunha. And so it came about that the famous SUDHA Moppet was born. That October, lamp kiosks and the bus sites of the city were splashed withthe moppet on a horse. The baseline simply said, Thoroughbread, terly Butterly Delicious SUDHA,. It was a matter of just a few hours before the daCunha office was ringing with calls. Not just adults, even children were calling up to say how much they had liked the ads. "The response was ]phenomenal," recalls Sylvester daCunha. "We knew our campaign was going to be successful."
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For the first one year the ads made statements of some kind or the other but they had not yet acquired the topical tone. In 1967, Sylvester decided that giving the ads a solid concept would give them extra mileage, more dum, so to say. It was a decision that would stand the daCunhas in good stead in the years to come. In 1969, when the city first saw the beginning of the Hare Rama Hare Krishna movement, Sylvester daCunha, Mohammad Khan and Usha Bandarkar, then the creative team working on the SUDHA account came up with a clincher -- 'Hurry SUDHA, Hurry Hurry'. Bombay reacted to the ad with a fervour that was almost as devout as the Iskon fever. That was the first of the many topical ads that were in the offing. From then n SUDHA began playing the role of a social observer. Over the years the ampaign acquired that all important Sudha touch. India looked forward to Sudha's evocative humour. If the Naxalite movement was the happening thing in Calcutta, Sudha would be up there on the hoardings saying, "Bread without Sudha Butter, cholbe na cholbe na (won't do, won't do). If there was an Indian Airlines strike Sudha would be there again saying, Indian Airlines Won't Fly Without Sudha. There are stories about the butter that people like to relate over cups of tea. "For over 10 years I have been collecting Sudha ads. I especially like the ads on the backs of the butter packets, "says Mrs. Sumona Varma. What does she do with these ads? "I have made an album of them to amuse my grandchildren," she laughs. "They are almost part of our culture, aren't they? My grandchildren are already beginning to realise that these ads are not just a source of amusement. They make them aware of what is happening around them." Despite some of the negative reactions that the ads have got, DaCunhas have made it a policy not to play it safe. There are numerous ads that are risque in tone.
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"We had the option of being sweet and playing it safe, or making an impact. A fine balance had to be struck. We have a campaign that is strong enough to make a statement. I didn't want the hoardings to be pleasant or tame. They have to say something," says Rahul daCunha. "We ran a couple of ads that created quite a furore," says Sylvester daCunha."The Indian Airlines one really angered the authorities. They said if they didn't take down the ads they would stop supplying Sudha butter on the plane. So ultimately we discontinued the ad," he says laughing. Then there was the time when the Sudha girl was shown wearing the Gandhi cap. The high command came down heavy on that one. The Gandhi cap was a symbol of independence, they couldn't have anyone not taking that seriously. So despite their reluctance the hoardings were wiped clean. "Then there was an ad during the Ganpati festival which said, Ganpati Bappa More Ghya (Ganpati Bappa take more). The Shiv Sena people said that if we didn't do something about removing the ad they would come and destroy our office. It is surprising how vigilant the political forces are in this country. Even when the Enron ads (Enr On Or Off) were running, Rebecca Mark wrote to us saying how much she liked them."Sudha's point of view on the MR coffee controversy There were other instances too. Heroine Addiction, Sudha's little joke on Hussain had the artist ringing the daCunhas up to request them for a blow up of the ad. "He said that he had seen the hoarding while passing through a small district in UP. He said he had asked his assistant to take a photograph of himself with the ad because he had found it so funny," says Rahul daCunha in amused tones. Indians do have a sense of humour, afterall. From the Sixties to the Nineties, the Sudha ads have come a long way. While most people agree that the Sudha ads were at their peak in the Eighties they still maintain that the Sudha ads continue to tease a laughter out of them.Where does Sudha's magic actually lie? Many believe that the charm lies in the catchy lines. That we laugh because the humour is what anybody
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Sudha follows a unique business model, which aims at providing 'value for money' products to its consumers, while protecting the interests of the milk-producing farmers who are its suppliers as well as its owners. Despite being a farmers' co-operative, Sudha has given multinationals a run for their money. In butter, cheese and saturated fats, Sudha has remained the undisputed market leader since its inception in 1955, by offering quality products at competitive prices. In other categories, Sudha has nullified its late mover disadvantage through aggressive pricing, better quality, innovative promotion, and superior distribution .
Expanding Marketing Assistance in planning, implementation and monitoring of business plans of milk unions geared to meet the targets envisioned in Perspective 2010 Offering financial and technical help to milk unions and federations in areas such as sales promotion, consumer education, distribution infrastructure development etc. Standardisation of artwork, colour, logo and retail outlet design across regional cooperative brands with a view to promoting better recall by consumers under a common mnemonic umbrella Introduction and improvement of marketing systems and processes necessary to perform better in a competitive marketplace Training and development of management and staff of milk unions and federations Targeted at helping pregnant women, growing children and young adults meet their daily calcium requirements and to help prevent diseases like osteoporosis, Sudha has launched Calci+, a high calcium milk, its marketer Gujarat Cooperative Milk Marketing Federation (COMPFED) said here on Monday. The new product, priced at Rs 35 a litre, contains 100 per cent natural milk calcium and does not contain any preservatives. It is simply subjected to a special sterilization process cal led ultra-heat treatment (UHT) and stays fresh for 120 days at room temperature. With its introduction, COMPFED is all set to strengthen its UHT milk portfolio, the statement said. The one-liter aseptically packed 157
tetra-pack Sudha Calci+ is being made available at all Sudha Preferred Outlets (APOs), super markets and major A-class outlets across India this month. The Gujarat Cooperative Milk Marketing Federation Ltd (COMPFED), which owns and markets the Sudha brand of milk products, registered a growth of 22.9 per cent to reach a record turnover of Rs 5,255.41crore in 2007-08, an increase of Rs 1,000 crore over the previous year. COMPFED have an impressive growth when viewed from the perspective of 13.4 per cent growth in 2006-07 Milk procurement by COMPFED’s 13 district milk union members in the year under review averaged 75.90 lakh kg a day, a growth of 12.9 per cent over last year’s 67.25 lakh kg a day. It processed almost one crore litres of milk a day during the peak procurement period. In the last fiscal , Sudha milk in pouches has been the largest contributor to the turnover with sales up by 48 per cent in value terms . Despite intense competition in the butter category, the Federation registered a double-digit growth in value. To make Sudha butter more affordable, low-unit value packs were introduced and a reduced-salt variety too was launched, Mr Bhatol pointed out. COMPFED’s continuous product innovation was accorded global recognition when it received the prestigious International Dairy Federation Marketing Award 2007 for the launch of Sudha pro-biotic ice-cream. Despite rapid population growth, the per capita availability in India has increased to 245 gm a day, which is very close to WHO standards, he added. The Gujarat Cooperative Milk Marketing Federation Ltd (COMPFED), the marketers of Sudha, has approved the continuation of the Sudha-Tata Fellowships for Rural Management Professionals for a further period of five years. The Board of Directors of COMPFED, at its recent meeting on April 5, took this decision. In 2001, COMPFED and the Sir Ratan Tata Trust (SRTT) had instituted 30 fellowships in the Institute of Rural Management-Anand (IRMA), with the objective of financially supporting the students
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pursuing the Post-Graduate Programme in Rural Management and encourage them to work with IRMA's designated organisations, COMPFED said in a release here. The total value of each fellowship is Rs 1 lakh, awarded on the basis of merit-cum-means. The awarded students are required to serve at least two years in designated organisations. So far, COMPFED has provided funds for 62 students. With these launches, the Gujarat Cooperative Milk Marketing Federation Ltd (COMPFED) is now a leading player in the Indian dairy beverages market with over 90 per cent market share in branded packaged dairy drinks segment. The milk-based market has been showing a double-digit growth. The Indian soft drink market is worth about Rs 7,000 crore per annum. The carbonated soft drinks account for 85 per cent of the total soft drink market but their growth has either been stagnant or declining over the last few years On marketing and promoting the product, the company would use all media â&#x20AC;&#x201D; print, TV and outdoors. "The focus of our promotions would be on the products' wellness qualities. The idea is to target the educated masses, young adults through our ads and build the Sudha ice cream brand further," Mr Sodhi said. In 2005-06, Sudha sold around 34 million litres of ice cream for an estimated Rs 210 crore and aims at selling around 42 million litres in 2006-07, thus hiking its revenues from ice cream to Rs 270 crore. THE next time you go shopping for cheese on your overseas trip, don't be surprised to find the familiar Sudha brand among an array of foreign brands on the store shelves. For the Gujarat Cooperative Milk Marketing Federation (COMPFED), which markets milk products under the Sudha brand, is aggressively focusing on taking the brand to overseas markets. In fact, Sudha products are now available in shelves across several countries including the US, China Australia, West Asian countries and those in Africa.
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With an eye on both consumer (which includes products such as cheese, butter, ghee and shrikhand) and commodity (skim milk and butter oil) exports, COMPFED is targeting export revenues of about Rs 200 crore this year. "Exports of milk products from India have become lucrative now. With most countries having reduced subsidies on milk products as per the WTO guidelines, milk products from India have become competitive in international markets. Earlier, international prices were lower than Indian prices. For our consumer products, we are targeting markets which have a large population of non-resident Indians," Mr R.S. Sodhi, Head Marketing, COMPFED, said. On the commodity exports front, COMPFED has tied up with dairies in other countries. Most of the exports of skim milk and butter oil are to neighbouring countries, West Asia, Africa, Afghanistan, China and Singapore. SUDHA is working on its biggest ever retail network expansion drive. The plan is to add one lakh ice-cream outlets over and above the existing 45,000. Speaking to Business Line, Mr R.S. Sodhi, Chief General Manager (Sales) of Gujarat Cooperative Milk Marketing Federation (COMPFED), said that Sudha ice cream is currently available at 600 locations across the country excluding the North-Eastern States. A recent addition to the list is Jammu and Kashmir. Sudha sells 35 million litres of ice-cream valued at more than Rs 200 crore out of a total branded ice-cream market of 100 million litres worth Rs 600 crore. "The Sudha ice cream business is currently growing at the rate of more than 20 per cent. "We have now adopted a scheme called `Hamara Apna Deep Freezer' for strengthening the retail network, following which the ice cream business portfolio is expected to touch Rs 500 crore," Mr Sodhi said. The project will cost close to Rs 30 crore.
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SUDHA is planning big on retail. The Gujarat Cooperative Milk Marketing Federation(COMPFED) owned brand is actively considering retailing fresh and frozen vegetables, fruits and fruit products to make optimum use of an extensive distribution network across the country. While the issue is still being debated within the organisation, as a run-up to its grand retailing plan, Sudha proposes to set up 10,000 `Sudha Parlours' across the country during the year. The parlours will be selling the entire product range of the COMPFED , in addition to the existing retail network for ice cream, milk and other products. Sudha is now planning a nationwide rollout of such outlets through franchise operators. At an average expenditure of Rs 50,000 a parlour, the project will cost approximately Rs 50 crore. Admitting that the parlours may mark Sudha's foray into retailing of non-milk farm and processed food products in the future, Mr Sodhi said, "Marketing of fresh and frozen vegetables, fruits and fruit products goes perfectly well with Sudha's strength in distribution and packaging. However, we are yet to decide on that." Meanwhile, the federation has firmed up plans for further expansion of its fresh milk business. Apart from Gujarat, Sudha milk is now available in 12 cities across six States. Sudha will expand its fresh milk markets to Kanpur and Lucknow this year. While Gujarat continues to be the biggest sourcing point for milk, Sudha is now procuring raw milk from Maharashtra, Karnataka, Andhra Pradesh, Madhya Pradesh, Rajashthan, Orissa, West Bengal, Jammu and Kashmir and Punjab. THE butter that you buy in June may have already been manufactured in January, but it would be perfectly safe to consume it, assure top Sudha officials. Describing the discovery of butter packets bearing a March 2005 manufacturing date at one of its cooperative units as a "human mistake", the Gujarat Cooperative Milk
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Manufacturing Federation (COMPFED) says that the company takes adequate care to ensure that quality products reach the consumer. COMPFED is a federation of different dairy cooperatives in Gujarat and owns the Sudha brand. "To the best of our understanding, it was a mistake on the part of one of our employees. We are awaiting the report of the state FDCA (Food and Drugs Control Administration) and necessary action will be taken," Mr Ram Singh Parmar, Chairman of the Kheda District Milk Producers' Union, where the butter packets bearing the wrong date of manufacture were picked up by the Gujarat FDCA on Tuesday, told Business Line. Dairy industry experts say that it was common practice for the industry to produce different milk products and then release them in the markets as the demand arose. "The milk production peaks in winter months. As it is easier to produce table butter at the time when the milk is being processed, it is common for companies to store the finished product in bulk and pack it according to demand," says a dairy expert who did not wish to be named. The COMPFED Chief General Manager, Mr R.S. Sodhi, however, denies that Sudha was putting an advance date of manufacturing on its products. "We put the exact date of manufacture on the label. You will find in summer months products that do not carry a very recent date of manufacture. That is due to the seasonal nature of the industry. Moreover, we recommend a one-year shelf life from the date of manufacture as against two years in most European countries," Mr Sodhi said. The company does not release stocks into the market that have a less than three month "best before" period and the consumer should not buy products that have already crossed the date. "Normally, the stocks stay with the retailers and distributors for less than 10 days. We ensure that stocks reach the retailer with a sufficient cushion. The consumers can be rest assured on the issue," Mr Sodhi says.
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In fact, the effort to ensure that the products reach the consumer much before the "best before" date involves a huge logistical challenge for all companies. Normally, companies voluntarily follow norms that are more stringent than the mandatory requirements, he says, adding that it presents the biggest challenge of logistics before the manufacturers. "We cannot export any products that have less than two-thirds shelf life left. In some countries, it is mandatory for the products to have over 80 per cent shelf life at the time they land. For the domestic market, we have now reduced the shelf life to a maximum of three years for our products that have a normal shelf life of four years," Mr Nayak says THE butter that you buy in June may have already been manufactured in January, but it would be perfectly safe to consume it, assure top Sudha officials. Describing the discovery of butter packets bearing a March 2005 manufacturing date at one of its cooperative units as a "human mistake", the Gujarat Cooperative Milk Manufacturing Federation (COMPFED) says that the company takes adequate care to ensure that quality products reach the consumer. COMPFED is a federation of different dairy cooperatives in Gujarat and owns the Sudha brand. "To the best of our understanding, it was a mistake on the part of one of our employees. We are awaiting the report of the state FDCA (Food and Drugs Control Administration) and necessary action will be taken," Mr Ram Singh Parmar, Chairman of the Kheda District Milk Producers' Union, where the butter packets bearing the wrong date of manufacture were picked up by the Gujarat FDCA on Tuesday, told Business Line. Dairy industry experts say that it was common practice for the industry to produce different milk products and then release them in the markets as the demand arose. "The milk production peaks in winter months. As it is easier to produce table butter at the time when the milk is being processed, it is common for companies to store the finished
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product in bulk and pack it according to demand," says a dairy expert who did not wish to be named. The COMPFED Chief General Manager, Mr R.S. Sodhi, however, denies that Sudha was putting an advance date of manufacturing on its products. "We put the exact date of manufacture on the label. You will find in summer months products that do not carry a very recent date of manufacture. That is due to the seasonal nature of the industry. Moreover, we recommend a one-year shelf life from the date of manufacture as against two years in most European countries," Mr Sodhi said. The company does not release stocks into the market that have a less than three month "best before" period and the consumer should not buy products that have already crossed the date. "Normally, the stocks stay with the retailers and distributors for less than 10 days. We ensure that stocks reach the retailer with a sufficient cushion. The consumers can be rest assured on the issue," Mr Sodhi says. In fact, the effort to ensure that the products reach the consumer much before the "best before" date involves a huge logistical challenge for all companies. "For us, it takes nearly 45 days to ship our products to our distribution godown at Silchar in Assam. Yet, we sell butter in Assam at the same price as in Gujarat and make sure that the stocks reach well in time," Mr Sodhi says. Agrees Mr Ganesh Nayak, Executive Director of pharmaceutical and healthcare products company Zydus Cadila. "We follow all international norms including the Current Good Manufacturing Practices or CGMP. We even take into account the date of manufacture of the APIs (active pharmaceutical ingredients) and excipients. You cannot fudge around with these figures," says Mr Nayak.
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Normally, companies voluntarily follow norms that are more stringent than the mandatory requirements, he says, adding that it presents the biggest challenge of logistics before the manufacturers. Distribution in the North will be backed by Sudha's upcoming dairy in Delhi, which also includes an ice cream plant. Delhi will be the eighth ice cream manufacturing facility of COMPFED. In the overseas market, especially in West Asia and the South East Asia, the company has increased its business from Rs 50 crore in 2003-04 to Rs 117 crore in 2004-05. The two prime contributors are milk powder and long-life milk.
CHAPTER-11
ATTRACTIVE FETURE
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SUDHA - THE BEST OF INDIA (COMPFED) Receives
INTERNATIONAL CIO 100 AWARDS FOR RESOURCEFULNESS COMPFED is a winner of the prestigious international CIO 100 award from IDG's CIO Magazine, USA. The 2003 CIO 100 award recognizes the organisations around the world that excel in positive business performance through resourceful IT management and best practices. This CIO International IT excellence Award has recognised the Cooperative Movement & its Leadership under the "Sudha" brand, initiated by Dr. V Kurien, Milkman of India, whose main Motto is to build Indian Society economically & literally strong through innovative cooperative resourceful network, so as to provide quality service & products to the end consumers and good returns to the farmer members. This award has also given direction that IT need to be encouraged & adopted more & more at grass root level and bridge the digital divide through proper training, re-training so as to bring radical change & benefit to the Indian society. It has also recognised the Managing Director, Mr. B M Vyas, who has taken IT initiative by setting the direction "COMPFED as IT Company in Food business". It has also inspired all the employees of COMPFED Enterprise to sustain the challenges as a "Change Agent" by excelling their IT skills in order to transform the people around them towards IT Integration (e-Vision) on both the ends of supply chain (Village level Farmer to end consumer). This award also motivated the each & every member dairy, Sudha's wholesale distributors, retailers, transporters and suppliers who have supported wholeheartedly the IT initiatives of COMPFED. The Gujarat Co-operative Milk Marketing Federation (COMPFED) has been honoured at the CIO 100 Symposium & Award Ceremony on August 19, 2003, at the Broadmoor in 166
Colorado Springs, Colorado, USA. Shri Subbarao Hegde, Head of IT had been to USA and received the said Award on behalf of COMPFED. The photograph link of the recipient of the CIO award along with CIO Magazine's Editor in Chief, Ramkrishna Bajaj National Qality Award-2003 The Gujarat Co-operative Milk Marketing Federation Ltd. has emerged as the top scorer in the service category of the prestigious IMC Ramkrishna Bajaj National Quality Award - 2003. The Certificate of Merit was presented at a glittering ceremony held at Mumbai on March 11 by the Governor of the Reserve Bank of India, Dr. Y. V. Reddy. According to Shri B. M. Vyas, Managing Director, COMPFED, this recognition has once again reiterated COMPFED's commitment to quality and excellence. The biggest strength of COMPFED is the trust it has created in the minds of consumers regarding the quality of its products. COMPFED and its brand Sudha stand for guaranteed purity for whatever products it produces, he added. COMPFED has bagged this award for adopting noteworthy quality management practices for logistics and procurement. Over the years, it has established an efficient supply chain that penetrates even the remotest corners of the country. The information systems of the Federation are comprehensive and include details on product quality, delivery performance, supplier quality, disaster recovery and all essential commercial areas, the citation reads. The Ramakrishna Bajaj National Quality Award is based on framework and principles almost similar to the Malcolm Baldrige Award that is given by the President of the United States to businesses - manufacturing and service, small and large - and to education and healthcare organizations that apply and are judged to be outstanding in seven areas: leadership, strategic planning, customer and market focus, information and analysis, human resource focus, process management, and business results.
SUDHA NOW A $ 1 â&#x20AC;&#x201C; BILLION COOPERATIVE
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Utterly butterly Sudha has just become more delicious. It is now the first Indian cooperative to cross the billion-dollar Rubicon. The Gujarat Co-operative Milk Marketing Federation (COMPFED), the makers of the Sudha brand of dairy products, reported on Friday that its 2006-07 revenues stood at Rs 4,277.84 crore or $1.04 billion. The trillion-dollar Indian economy boasts several billion-dollar enterprises, including Reliance Industries, Bharti, Infosys, TCS, and Wipro. But all these successes stem from private entrepreneurship. Sudha, in contrast, is the achievement of the pooled efforts of 26 lakh dairy farmers across 13 districts of Gujarat. COMPFED chairman Parthibhai Bhatol said: "This is an impressive achievement, considering the ban on exports of skimmed milk powder, which has reduced our export earnings, and the massive losses suffered by the farmers due to floods last year, especially in Surat." The â&#x20AC;&#x2DC;milkman to the nationâ&#x20AC;&#x2122;, Dr V Kurien, who set up Sudha and ushered in the white revolution, was not available for comment. After a bitter power struggle in the COMPFED, Kurien had to quit as chairman last year.
Chairman's Speech: 30th Annual General Body Meeting on 8th June 2004: Adopted at their meeting held on 8th June, 2004 for presentation at the 30th Annual General Body MeetingGentlemen,I am appy to welcome all of you to this 30th Annual General Body Meeting of your Federation. Thirty years ago the milk producers of Gujarat had come together and decided to create their own rganisation to enhance the marketing capacity of the dairy cooperative movement. Looking back I think we can agree that they showed remarkable foresight in creating their own marketing organisation. That is in no small part because this organisation has delivered results - continuously beating competition of every type in the
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dairy business. This has been achieved at he least possible cost, ensuring the benefits reach both producers and onsumers. As you all know, Sudha was founded on a sound business model: providing quality products to consumers at an affordable price. The Pundits have described our model as "value for money" and it has been adopted by a number of companies. While imitation may be flattery, most other prices - it means offering the best quality products at the most reasonable price. As a cooperative, our faith requires that we safeguard the interest of both our major stakeholders - the farmers - and the consumers whose loyalty is essential to our continued success. As I look forward, I foresee business opportunities expanding as never before. The Indian economy is growing at a very rapid pace. Disposable income in the hands of consumers has more than kept pace. The result is that our domestic market has been expanding at a pace that occasionally surprises even the optimist. We now need to challenge our distribution to reach remote markets with innovative products and services so that more and more consumers benefit from our wide and expanding range. Your Federation is taking steps both to deepen our market penetration as well as to accelerate its growth. An expanding marke t inevitably attracts increasing competition. Today, every product category sees new entrants in our business. Competition may be from existing companies entering new categories or from new companies. Our experience and marketing prowess has enabled us to maintain a formidable distance between our competitors and us. However, there is no room for complacency. We must not only maintain our lead, we must increase it. In our business, the technological and financial barriers for new entrants are not high. We must therefore leverage our experience as well as our procurement, processing, distribution and branding advantages to establish high entry barriers, continually raising these by innovation in every area.
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On the external front, neither the US nor the EU had shown any willingness o consider reducing their high subsidies on dairy exports. It is a matter of some satisfaction that the Indian government has stood by its farmers by withstanding international pressure to lower tariffs on dairy products. We are grateful for this support. We are also confident that the government will continue to safeguard the interests of the Indian farmer by continuing to resist international pressure and domestic lobbying from vested interests to lower our bulwarks against unfair trade in agricultural and dairy products. Recently, the EU has introduced some reductions in its dairy sector subsidies especially on butter oil, Skimmed Milk Powder and white butter. This marginally reduces the fear of European players competing for our domestic market from a position of price advantage. It also opens for us the opportunity to compete with European producers on a level playing field in neighbouring markets. With increased peace, cooperation and understanding among the SAARC nations, our regional market is expected to grow manifold across categories. But for us to gain a meaningful share in the emerging markets, our unions and marketing teams must meet the challenge of performing at levels that are the prerequisite for success. You will be pleased to know that your Federation has grown substantially in both volume and value terms in the last year. That we have grown by over Rs.430 crores in the dairy line highlights your Federation's versatility and robustness. The icing on the cake has been a more than 15 percent increase in our farmers' returns. I now am pleased to present to you your Federation's Annual Report and Audited Accounts for the year 2003-2004.
MILK PROCUREMENT Total milk procurement by our Member Unions averaged 51.13 lakh kilograms per day, a marginal decline from 52.35 lakh kilograms per day, achieved in 2002-2003. However, the good monsoons experienced during last year and the better procurement prices on
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offer are expected to encourage higher milk production and procurement in the current year.
SALES During the year, your Federation's sales registered a growth of 5 percent increase to reach Rs. 2,881.96 crores including consignment sales of Rs.62.95 crores. The dairy line grew by about 18% despite the loss of a sizable edible oil business. This year, the sale of Sudha Milk in pouches increased by 34 percent in value terms. A notable development in the area of liquid milk in pouches has been the successful launch of Sudha Milk in the Delhi market during November 2003. Within under 60 days of launch, we had achieved sales of 1 lakh liters per day. UHT Milk has grown in both value and volume terms by 60 percent, which shows that it has really come upon the high growth stage. Sudha ice cream achieved a sales value growth of 11 percent, and has come out as the undisputed market leader. and Sagar brand pure ghee sales in value increased by 17 per cent over the previous year. Despite intense competition, sales value of Sudha Butter grew by 19 percent and that of milk powders has firmed up further. The sales of the Sudha Cheese range increased by 13 percent. Products like Flavoured Milk, Sudha Fresh Cream, Paneer, Mithaimate, Softy Mix, and fresh curd demonstrated their potential to become dominant brands in the coming few years.
DISTRIBUTION During the year, the major development on the distribution front was the development and alignment of four distribution highways-those of Fresh Products, Chilled Products, Frozen Products and Ambient Products. This is a significant achievement because it allows us to develop synergies among all our product lines and to leverage these highways to introduce and distribute new products as per market demand. I take pleasure in declaring that no other organization in India has been able to develop this kind of channel synergy so far.
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Another major initiative undertaken during the year was the Time-based Military Technique (TMT) of distribution. This has been deployed to effect a nationally synchronized mass distribution of our products with the objective of achieving total channel penetration on a single day. I am pleased to declare that this initiative has proved to be very successful. Most of our products launched or re-launched through this technique have seen significant gains in distribution and availability. After Distributor Salesmen in the previous year and Distributors in the year before last, it was the turn of the top Retailers across the country to participate in the Sudha Yatra Programme. As you are aware, the Sudha Yatra Programme is a unique experiment conducted by your Federation to bring our channel partners face to face with our cooperative institutions, activities, culture and achievements through a guided tour in and around Anand. A total of 114 Distributor Salesmen and 482 top retailers from across the country participated in the Sudha Yatra this year. With the opening of several new milk markets and 3 separate Milk Sales Offices at Mumbai, New Delhi and Boisar, the number of Milk Area Delivery Agents has ncreased. 95 Milk Area Distribution Agents also visited Anand for Sudha Yatra. Distributors have further enhanced their infrastructures in terms of installation of cold storage arrangements, enhanced bank guarantee limits with Federation and introduced good quality delivery vehicles. An objective evaluation was done in the form of distributor renewal and Performance appraisal. For understanding the level of adherence to infrastructural and procedural norms laid out by Federation and compliance to the same by our Distributors, a pilot initiative of Distribution Audit was undertaken for 70 Wholesale Distributors. With one of the strongest cold chain distribution network in the country today, Federation today owns 13 State-of-the-art cold rooms at various depot locations.
EXPORTS
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We will be pleased to know that we have posted more than 50% growth in the volume of consumer pack exports. This reflects strong and growing consumer faith in our Sudha brand. As you are aware, during the year Northern India had faced a severe milk crisis. At the request of our government, we diverted milk powder stocks to Delhi thereby depriving our export market. As a result, Federation's overall export turnover has dropped by 40 percent. I am sure you will agree, however, that our first duty is to the Indian consumer. I am pleased to inform you that our Long Life milk has been very well accepted in the UAE and Singapore markets. We have launched UHT milk in Hong Kong and Sri Lanka market. We have also made a successful beginning in export of ghee to Australia.
INFORMATION TECHNOLOGY INTEGRATION SUDHA Federation has further advanced our technological leadership by implementing a Virtual Private Network (VPN) with secured fiber optic connectivity which, with deployment of the "Sudha Online ERP" System, will facilitate electronic transactions between member unions and the Federation offices, providing a seamless and smooth flow of information that enhances operational efficiency. The Federation now enjoys a significant advantage in rapid reaction to changing business demands. Your Federation is bolstering our brand identity as a farmers' co-operative through the Internet based "Sudha.coop" URL and e-mail addresses. This will continually remind the world's consumers that we are a cooperative, and proud of it. This identity gives us a vital business advantage and facilitates Sudha brand penetration across the world. It also strengthens our co-operatives by bringing our members together and closer to consumers. Your Federation's achievements have been honoured at the International CIO 100 Symposium and Award ceremony in Colorado Springs, USA where we received the CIO 100 award for its excellence in positive business performance through resourceful IT management and best practices.
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COOPERATIVE DEVELOPMENT PROGRAMME During the last four years, our Member Unions have implemented an Internal Consultant Development (ICD) intervention focused on developing leadership among member producers, helping them to better manage their dairy business. During the year, Member Unions continued to implement the module on Vision Mission Strategy (VMS) for primary milk producer members and Village Dairy Cooperatives. Facilitated by specially trained consultants, 1,073 Village Dairy Cooperative Societies (VDCS) have conducted Vision Mission Strategy Workshops, and have prepared Mission Statements and Business Plans for the next five years. The VMS module has prompted milk producers to initiate activities at villages that have far-reaching effects on the milk business. The success of the program has led to Member Unions focusing on implementing this VMS module and developing Business Plans for all VDCS, thus strengthening them to face the fierce competition ahead.Continuing the Cleanliness Drive at village level, Member Unions have trained 8,455 core groups of milk producers and VDCS management. On October 2nd, 2,970 VDCS celebrated Red Tag Day, an effort to raise Cleanliness awareness. The Unions also presented awards to the VDCS that raised cleanliness standards to the highest levels. As a part of the Breeding Services Improvement Programme, Member Unions have continued implementation of the second module of Improvement in Artificial Insemination Services. In the villages, 3,374 core groups have been trained and a decision has been taken to extend the program to include all the VDCS that offer breeding services. A mass de-worming campaign has been undertaken to fortify the breeding services. During the year, Member Unions implemented an Artificial Insemination Audit Competition that identified the best performing VDCS and Artificial Insemination Workers who received awards as a motivation for continued improvement.
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With the objective of encouraging professional management by Milk Producers and dairy cooperative societies, Member Unions have initiated Members' Business Development Programme (MBDP). During the last three years, 2,483 villages and 1,53,108 milk producers participated in the programme. This has resulted in introduction of new scientific animal husbandry management methods on a significant scale. A Chairmen and Secretaries' Orientation Programme is being conducted at Mother Dairy, Gandhinagar. Member Unions, supported by your Federation, carry out this program to increase awareness regarding the dairy industry scenario and to develop leadership skills among Chairmen and Secretaries. During the year, 5,797 chairmen and secretaries from 2,944 Village Dairy Cooperative Societies participated in the program. An ongoing emphasis of our Member Unions has been to encourage increased women milk producers' participation in their Dairy Cooperative Societies. To develop and enhance leadership skills and qualities, Member Unions organised three Self Managing Leadership (SML) workshops at Prajapita Brahmakumaris, Mount Abu which attracted the participation of 3,100 women resource persons along with the Chairmen and Secretaries750 VDCS.
WHAT THE FUTURE HOLDS As you are all aware, there is a steady increase in consumer expectations. Product and service quality is rapidly becoming the minimum threshold for consumer acceptance. To achieve and maintain competitive advantage, innovation in product design and delivery are increasingly essential. Innovation must now define us as an organization. We must innovate at eachstage in our value chain - production, procurement, processing, arketing and branding.Innovation cannot be mandated or forced out of people. It is everywhere a function of the quality of people and environment. We need to have enough skilled people working in a self-actuating environment to produce innovation. In these times of increasing market opportunities, we need to devise more effective ways of attracting and retaining skilled human esources. It is to be realized that just as the market is expanding 175
for our products, so it is opening up new opportunities for the skilled people that we need to tap the market. Further, it does not suffice merely to retain skilled human resources. It is also necessary to provide them an adequately self-motivating work environment that draws out the best out of them on a sustained basis. Therefore, our competitiveness must also encompass effective human resource management. To this end, we have to find new strategies. In the past, our illustrious leaders like the late Shri Tribhuvandas Patel, urabhai Patel, Jaswantlal Shah - to name only a few - understood the mportance of professionalism in the management of cooperatives. They always encouraged attitudes and activities geared towards a results rientation. Today's leaders have a duty and an obligation to carry forward that tradition of identifying and nurturing professionalism. You would recall that last year I had shared my feelings and reservations on DDB's initiative of making joint ventures-and that too with majority holding of the Government. I am happy to inform you that most of the State Federations of India have declined to accept such partnerships where the Government is in majority. Even where it was accepted, the cooperatives are now changing their minds and reverting to the pure cooperative movement. I am saying this not because I am happy per say about the failure of the joint ventures, but because the leaders of cooperatives have understood that they have a great responsibility towards farmers, consumers & the nation. And in honouring this responsibility they have to work hard with commitment and sincerity. They should ensure the highest level of professionalism at the cooperative level. They should give the professionals full freedom to perform instead of interfering in operational matters-thereby limiting the growth of the organisation. I hope that you would appreciate my viewpointand see to it that our leaders rise to this level of performance.
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From the year 1994, our unions have been engaged in the practice of third party validation of its practices. Since then, we have been awarded the ISO 9002:2000, the HACCP, the ISO 14001 and similar marks of our excellence in milk procurement and processing. We have also been given a certificate of merit from IMC Ramkrishna Bajaj National Quality Award during last year. I would stress that we sought such certification not because the Federation needed endorsement from outside agencies regarding its best practices. Rather, achieving them serves the very important purpose of encouraging the standardization of our production and marketing related processes and the infusion of a self-sustaining momentum into these processes. I find that such certifications are also very necessary in our village dairy cooperative societies' election processes. The importance of standardization of our village society election processes lies in their instrumentality in throwing up genuine and visionary leaders. It determines the future of the cooperative movement. Standardization and transparency in our village society elections can come only through the continuous and impersonal adherence to a well documented process that an ISO 9001 recognises.The year 1994 was an important watershed for your Federation. It marked our bold foray into the brave new world of portfolio diversification and new product development. It was at this time when we took our first steps outsidethe security of our traditional products: powders, butter among thers. Since then, we have emerged as the food organization with what may well represent the most diversified product portfolio - ranging from ice cream and dahi to Long Life and Flavoured milk. We have learnt to be on the constant lookout for changing market requirements and to adapt to these changes proactively. Today, there is no doubt that we are a part of the world market. As everywhere else, the market trend in India is towards the growing importance of fresh products. The coming years will see increasing volumesbeing generated from fresh milk, Long Life Milk, curds and the like. Because our milk procurement and processing capacity is unparalleled in the country and the region and because we have a brand equity that is nsurpassed in the food business sector, your Federation is in a position to leverage these assets to effectively command the market leader's position in
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the emerging fresh dairy products market. However, here too we cannot be complacent. We must constantly create and update our competencies in these products so as lead, set and exceed market expectations. Your Federation has now developed competence in distributing fresh products on daily basis. This is equally true of long life products held at ambient temperature, products requiring deep-freezing during storage or transportation, and products that require zero degree temperature. This established competence is, and will continue to be, an essential element in building synergies among product lines - ultimately creating superior economies of scale. Based on the work done in the last decade, the changes that we have built in the Organisation at all levels, and with the new portfolio of products we have developed, I feel confident of maintaining our market share growth. I also feel confident that your Federation will be able to increase its sales further by close to another Rs.500 crores in the current year. Your Federation has always tried to be a step ahead of the market. It has always been a model to which other cooperatives have looked up as an example and inspiration as well as one from which many have benefited. Those who had scoffed at the idea of cooperation as a business model are today trying to emulate it. Thankfully, we need not be remembered for anyof the wrong reasons. Sudha has always been and remains a movement that stands for the farmer. We have always espoused the values of social justice, integrity and growth with equity. If Sudha deserves to be remembered for anything, first and foremost it is for the difference we have made and are making in the lives of millions of farmers. Against all odds, we have managed to replace a million furrows of hopelessness with at least a faint line of the smile of hope. That line makes a difference. That puts the real shine on the face of India.
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ACKNOWLEDGMENTS Before closing, I would like to thank all those who have helped to make your Federation's operations successful. The National Cooperative Dairy Federation of India has been providing us with invaluable support in coordination with other agencies and organisations. The National Dairy Development Board has played an important role in our growth and development. The Institute of Rural Management, Anand, as always, has contributed to the perspective building and professionalisation of the management of the co-operative sector. We express deep gratitude for their support.Our advertising agencies, bankers, insurers, management consultants, suppliers and transport contractors have been of great help to us in managing our growth and are partners in our success. We acknowledge their contributions and commit ourselves to continue and strengthen this fruitful alliance in the times to come. We depend on the efficiency of our distributors, retailers and most important of all, the patronage of our consumers, who have come to regard our brands as synonymous with quality and value. While thanking them for their support, we assure them that we shall strive endlessly to delight them.Our Member Unions are our strength. We thank them for their guidance, support and co-operation without which we would not exist. The Government of India and the Government of Gujarat have continued to offer support and encouragement, for which we are grateful. Lastly, we thank the officers and staff of your Federation for their continued perseverance, loyalty and unflinching efforts devoted to our cause.
CHAPTER-12
SUDHAâ&#x20AC;&#x2122;S SECRET OF SUCCESS The system succeeded mainly because it provides an assured market at remunerative prices for producers' milk besides acting as a channel to market the production enhancement package. What's more, it does not disturb the agro-system of the farmers. It 179
also enables the consumer an access to high quality milk and milk products. Contrary to the traditional system, when the profit of the business was cornered by the middlemen, the system ensured that the profit goes to the farmers. participants for their socio-economic enlistment and common good. Looking back on the path traversed by Sudha, the following features make it a pattern and model for emulation elsewhere. Sudha has been able to: Produce an appropriate blend of the policy makers farmers board of management and the professionals: each group appreciating its roles and limitations Bring at the command of the rural milk producers the best of the technology and harness its fruit for betterment Provide a support system to the milk producers without disturbing their agro-economic systems Plough back the profits, by prudent use of men, material and machines, in the rural sector for the common good and betterment of the member producers and Even though, growing with time and on scale, it has remained with the smallest producer members. In that sense, Sudha is an example par excellence, of an intervention for rural change. The Union looks after policy formulation, processing and marketing of milk, provision of technical inputs to enhance milk yield of animals, the artificial insemination service, veterinary care, better feeds and the like - all through the village societies The village society also facilitates the implementation of various production enhancement and member education programs undertaken by the Union. The staff of the village societies have been trained to undertake the veterinary first-aid and the artificial insemination activities on their own Sudha's success: A model for other districts to follow. Sudha's success led to the creation of similar structures of milk producers In other districts of Gujarat. They drew on Sudha's experience in project planning and execution.
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Thus the 'Anand Pattern' was followed not just in Kaira district but in Mehsana, Sabarkantha, Banaskantha, Baroda and Surat districts also. Even before the Dairy Board of India was born, farmers and their leaders carried out empirical tests of the hypotheses that explained Sudha's success. In these districts, milk producers and their leaders experienced significant commonalties and found easy and effortless ways to adapt Sudha's gameplan to their respective areas. This led to the Creation of the National Dairy Development Board with the clear mandate of replicating the 'Anand pattern' in other parts of the country. Initially the pattern was followed for the dairy sector but at a later stage oilseeds, fruit and egetables, salt, and tree sectors also benefited from it's success. Sudha
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Our Corporate Bureau 2 December 2003 New Delhi: The recent activities of Gujarat Cooperative Milk MarketingFederation (COMPFED), Paras Dairy and Britannia in the Delhi market indicate that Mother Dairy, the leader of the milk market in the capital, will soon have a fight on its hands to retain its leadership position here. Delhi National Capital Region (NCR), among the biggest milk markets in the country, is dominated by Mother Dairy currently. Sudha and NDDB's non-compete agreement has prevented the former from launching its liquid milk in the Delhi market till 2003. With the non-compete agreement having run out this year, Sudha fresh milk was launched in Delhi last month in two variants â&#x20AC;&#x201D; full cream and toned â&#x20AC;&#x201D; priced at par with that of Mother Dairy at Rs 18 and Rs 14 per litre, respectively. Sudha, to its delight, has seen the demand for its milk going up by leaps and bounds in the city and is now planning to enter into alliances with dairies located around Delhi such as Indian Potash and Modern Dairy to cater tothe demand.
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Sudha already has a lease agreement with Kwality Dairy's unit in Faridabad where it is planning to increase capacity and has also decided to set up a new 5-lakh litre per day dairy plant at an investment of Rs 40 crore in Haryana to cater to the northern market. COMPFED officials say the company's milk capacity has already touched 80,000 litres per day (LPD) and have plans to take it to 3 LPD. Sudha is now selling through 2,500 retail outlets and will increase this to 7,500 apart from covering outlets which are selling Sudha butter. Another player gearing up to unseat Mother Dairy from the leadership throne is the Rs 400-crore Paras group. The company has hit upon an innovative strategy of introducing milk vending machines which dispense token milk at Rs 13 per litre. Paras says this strategy targets the unbranded milk segment which accounts for 45 per cent of the total milk consumed in Delhi NCR. The company plans to put up Paras Milk Point (PMP) machines at various fast-moving consumer goods outlets all over the capital. Over 50 machines each costing over Rs 2 lakh â&#x20AC;&#x201D; will be installed in phases over the next four months to cater to toned milk users. The PMP machines carry about 250 litres of milk and have an in-built refrigerator. Paras brand currently reaches 9,000 outlets in and around Delhi, and the group is looking at penetrating fresh markets in the northern region. Paras' total processing capacity of its three units, one at Haryana and two at Sahibabad in Uttar Pradesh, is 14 lakh LPD. The Bihar market comprises 40 lakh litres currently and is dominated by Mother Dairy, which sells 10 lakh LPD. The other organised sector players are Paras Dairy, which sells 3 lakh LPD, state-owned Delhi Milk Scheme (2.5 lakh LPD), Gopaljee (1-1.5 lakh LPD) and Britannia 30-
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MARKERING STRATEGIES OF SUDHA Sudha is based on absolute ground level of marketing company was responsible for the dairy and milk revolutionary in the late of 1940â&#x20AC;&#x2122;s and the villagers and farmers from different regions of Gujarat and bring the operation flood. Sudha has various products and has distinction of having every possible dairy products in its product line. The secret behind Sudhaâ&#x20AC;&#x2122;s success is the constant innovation with superior quality in its products. Sudha divides its strategic plan in 5 steps : 1) Mapping the market 2) A value identification 3) Segment the market /Audit 4) Understanding the actual customers 5) Also concentrate in Niche marketing (1) Before starting the production Sudha locate the market of any place in India as well as abroad. They spot out or highlight that portion of the market at which demand is reasonable. 2) After mapping it, the second important step, there economical backup or response from the customers counted on. The market strategy of Sudha is that they calculate the possible return that may come from the product. 3) Segmentation of market is the main source of success for any high rofile business. A company like Sudha cannot proceed for any production, they have to segment the market properly & practically. After that their outcome will resemble with the expected one. 4) Almost the whole Indian market is dominate by Sudha.
They are trying to
capitalize, before launching of any product by Sudha they must realize hat what their 183
potential customers are expecting from them so, in this way Sudha company very much conscious about their customer. 5) Niche marketing is another innovative outcome of latest concept and which adopted by Sudha. To be successful in todayâ&#x20AC;&#x2122;s competitive arced, a company must capture the minute or small segment of any huge market. It order to do that, the marketing structure of company must be very choosy & intellectual. So that it can reach upto that small segment. By capturing such segment Sudha is acquiring huge market.
PULL STRATEGY: Involves the manufacturer using advertising and promotion to induce consumers to ask intermediaries for the product there inducing the intermediaries to order it. Pull strategy is appropiate when there is a high brands loyalty and high involvement in the category, when people perceive differece between brands and ehen people choose the brand before they go to the store. So, Sudha always follow the pull strategy it is totally a customer oriented company and conern about 100% satisfaction of the customer.
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GOVERNMENT POLICY The Indian processed dairy industry has grown and diversified enormously in the last few years. To ensure the proper development and growth of this industrial sector, the Government of India has instituted various laws and regulations. The various regulations 184
that govern the dairy processing industry can broadly be classified into: Compulsory Legislation
Prevention of Food Adulteration Act, 1954 This Act is the basic statute that is intended to protect the common consumer against the supply of adulterated food. This specifies different standards for various food articles. The standards are in terms of minimum quality levels intended for ensuring safety in the consumption of these food items and for safeguarding against harmful impurities and adulteration. The Central Committee for Food Standards, under the Directorate General of Health Services, Ministry of Health and Family Welfare, is responsible for the operation of this Act. The provisions of the Act are mandatory and contravention of the rules can lead to both fines and imprisonment
Milk and Milk Product Order (MMPO) 1992 The Milk and Milk Product Order (MMPO), 1992, issued on June 9, 1992 seeks to ensure the supply of liquid milk, an essential commodity, to consumers by regulating its processing and distribution. Within eight years of its operation, the Central/State Registering Authorities have till December 2000 registered 666 units with a total processing capacity of 65.8 million litres per day (mlpd) Salient Features of the MMPO Order include the followingRegistrations for units handling up to 75,000 litres of milk per day are granted by the State Governments and units with more than 75,000 litres per day capacity are registered by the Central Registering AuthorityThe Certificate also specifies the milkshed area, which, under the order isdefined as a geographical area demarcated by the Registering Authority for the collection of milk by the registered unit. Maintenance of specified hygienic conditions in the premises wheremilk and milk products are handled, processed, manufactured or stored.
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The collection, transportation and processing of milk normally centresround the operations of a processing plant. The region from which the marketable surplus of milk production finds its way to a processing plant is called a 'milkshed'. The concept of milkshed areas is pivotal to the MMPO. For an orderly development of the dairy industry, a proper assignment/allocation of milkshed is critical. The dairy industry is regulated in most countries through various ways. Many subsidise part or whole of domestic production. Imports are commonly restricted, and exports frequently subsidised. High dairy price supports in many countries are put in place to stimulate production to the extent that subsidies forexports are necessitated to maintain domestic dairy programmes. In the United Kingdom, all the milk produced by farmers is procured by the cooperatives. Private dairies are required to buy their milk requirement fromcooperatives. New Zealand has no private sector dairy plants. As many as 90 per cent of dairies in the erstwhile West Germany and 100 per cent in Denmark, Netherlands and Sweden are in the cooperative sector. In the United States, 70 per cent of the dairy industry is cooperative. Dairy programmes are subject to more Government participation or regulation than most other domestic agricultural industries in the USA. There are also Federal Milk Marketing Orders and movement barriers in the USA for "orderly marketing control, which is associated with stabilising fluid milk prices, providing secured and dependable markets for individual farmers producingmilk primarily for the fluid market and improving the balance of market. In the emerging liberalised global scenario, trade-distorting agricultural policies have been the focus of the GATT multilateral trade negotiations. With the liberalisation of agricultural trade under the new GATT regime, the heavy subsidies prevalent in the dairy sector in the countries of the EU as well as in the USA will have to be brought down in the next few years.
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The competitive advantages of the Indian dairy industry are then considered to be substantial. With substantial and continued investment in building up milk production, India can emerge as a major exporter of dairy products in the next few decades. Standards on Weights and Measures (Packaged Commodities) Rules, 1977These Rules lay down certain obligatory conditions for all commodities that are packed form, with respect to declarations on quantities contained. These Rules are Export (Quality Control & Inspection) Act, 1963 The Export Inspection Council is responsible for the operation of this Act. Under the Act, a large number of exportable commodities have been notified for compulsory preshipment inspection. The quality control and inspection of various export products is administered through a network of more than fifty offices located around major production centres and ports of shipment. In addition, organizations may be recognized as agencies for inspection and /or quality control. Recently, the government has exempted agriculture and food products, fruit products and fish and fishery products from compulsory pre-shipment inspections, provided that the exporter has a firm letter from the overseas buyer stating that the overseas buyer does not require pre-shipment inspection from official Indian inspection agencies. Pollution Control No Objection Certificate from Pollution Control Board is a must.
Voluntary Standards There are two organizations that deal with voluntary standardizationand certification systems in the food sector. The Bureau of Indian Standards looks after standardization of processed foods and standardization of raw agricultural produce is under the purview of the Directorate of Marketing and Inspection. Bureau of Indian Standards (BIS)The activities of BIS are two fold, the formulation of Indian standards in the processed foods sector and the implementation of standards throughpromotion and through voluntary and third party certification systems. BIS has on
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record, standards for most of processed foods.In general, these standards cover raw materials permitted and theirquality parameters, hygienic conditions under which products are manufactured and packaging and labelling requirements. Manufacturers complying with standards laid down by the BIS can obtain and "ISI" mark that can be exhibited on product packages. BIS has identified certain items like food colours/additives, vanaspati, containers for packing, milk powder and condensed milk, for compulsory certification. Directorate of Marketing and Inspection (DMI)The DMI enforces the Agricultural Products (Grading and Marketing) Act, 1937. Under this Act, Grade Standards are prescribed for agricultural and allied commodities. These are known as "Agmark" Standards. Grading under the provisions of this Act is voluntary. Manufacturers who comply with standard laid down by DMI are allowed to use "Agmark" labels on their products
Other Government Regulations Import of Capital Goods Import of capital goods is automatically allowed if it is financed through Foreign Equity. Alternatively, approval is needed from the Secretariat of Industrial Approvals. The approval depends on the availability of Foreign Exchange Resources.
Import of Second Hand Capital Goods However Certificate of Registration is required under the Milk and Milk Products Control
Industrial License: Order (MMPO) 1992.
Foreign Investment
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Foreign Investment in dairying requires prior approval from the Secretariat of Industrial Approvals, Ministry of Industry, as dairying has not been included in the list High Priority In case of other Industries, proposals will be cleared on case to case basis. Government may allow 51% without enforcing the old limit of 40% applicable under Foreign Exchange Automatic approval will be given up to 51% Foreign Investment in High Priority Industries.
Regulations Act at its discretion Foreign Technology Agreements: purchased at market rates Foreign Technicians can be freely hired
ABOUT THE PARTICULAR TOPIN TAKEN IN THE ORANISATION The project that has been assigned to me under my summer training in COMPFED by my guide
Mr.
K.K.SHARMA
executive
manager
division,
delegated
following
responsibilities. I had to increase the sales of product in Gaya by making new retailers and distributors the problems that retailers are facing concessionaires they expect from Sudha, schemes, replacements if required, delivery problems , visit by the salesman in their shops i.e. coverage by the salesman is satisfactory or not , supply of ordered goods are on time. I had to check whether there is any packing problem, the stick that the retailers are maintaining and selling should not be outdated or too old. I had been given the responsibilities to develop the marketing of Sudha Ice-cream and recommend suggestion for improvement accordingly.
CHAPTER-14
JOB PROFILE / ASSIGNMENT FROFILE INTRODUCTION
189
TOPIC:
â&#x20AC;&#x153;Prepare a proposal for the enhancement of the product & Performance of milk retailers .â&#x20AC;?
PRODUCT:
SUDHA
PLACE:
GAYA
GUIDE:
Mr. K.K..SHARMA
DURATION:
2 MONTH
SCOPE:
To
increase
the
market
of
sudha
and
develop
the
marketing strategies in Gaya is the project that has been assigned to me by my guide Mr. K.K.Sharma Executive of MAGADH DIARY PROJECT (COMPFED) SUDHA.
Some financial data whatever I collect at the time of summer training for completing my project as I had to give suggestion for the enhancement of the product so I could success to collect to financial data of last two year. After getting experience in FMCG (fast moving consumer goods) company of 40 days I could learn many thing during summer training, whatever I learned in last one year as a theoretical knowledge. As where my topic concerned my topic are to make the proposal for the enhancement of the product & performance report of milk retailers. Till now I could know the marketing strategies, financial process, about the retailers and many, more thing. My main motive of summer training to enhance myself after completing summer training. As we know that practice makes a man perfect but how is it possible after getting experience. And the more we get experience the more we learn. In 40 days I
190
could know that how company can maximize the profit as well as sell. I have accumulated the data which will help me in completing project. I have to complete my project and I have to submit. In the period of 40 days I have learn a lot of things, of which I am summarizing in the weekly fashion. 1st Week & 2nd Week In these two weeks I have learned about the products detail and the main clients of the products and also the supplier and distributorâ&#x20AC;&#x2122;s detail. 3rd & 4th Week These two weeks are the very crucial for me to learn about the client and agency relationships. How to motivate and influence the customer about our product is the main chapter for me which I have learned in these two weeks. I have meet individually with the distributor of our product and suggesting him the way through which the customer can switch to my product. 5th & 6th Week These two weeks are very crucial for my life to learn. As my guide has given me the target of some fixed amount which I have to achieve within the specified two weeks time constraints. After 10 days I have completed my 70% target by awaring the clients and suggesting the new methodology to the existing distributors of the company. The another way through which I have achieve this is to enhance the power of influence of the company. As I have suggested to my guide about rural distributorâ&#x20AC;&#x2122;s can add more to our client. The schedule for next week is most probably is the official work as to how the processing of an order is converted immediately to the distributor so that the product can reach timely to the consumer. And I will hopeful that my guide will make me to move to the head office for the upper level of conversation with the chairman and the M.D. of the company for the performance evaluation of mine and for the issuing of the proof certificate for doing summer training in the organization
I also used to meat to distributer in gaya and patna and I could realized many problem which I am showing following. Magadh Dairy, Gaya Ratio Analysis 01-04-07 to 31-03191
2008 Principal Groups Working Capital Cash-in-hand
45,06,047.26 Cr 3,35,276.32 Dr
Principal Ratios Current Ratio Quick Ratio Debt/ Equity Ratio Gross Profit % Nett Profit %
Bank Account Bank OD A/c Sundry Debtors Sunndry Creditors
1,04,94,737.63Cr 0.00Cr 7,02,344.29 Dr
Sales Accounts Purchase Accounts
11,73,37,658.78 Cr
Recv.Turnover In days
10,02,60,189.18 Dr
Return on Investment % on Wkg. Capital Return %
Stock-in-hand Nett loss Wkg. Capital Turnover Inventory Turnover
14,28,434.25 Cr
76,37,944.12 Dr
Oprating Cost %
0.65 :1 0.06 :1 0.40 :1 5.87 :% (-)3.59% 103.59% 33.69 days 20.42% 93.51%
42,13,546.21 Dr 26.04 15.36
MAGADH DAIRY ,GAYA PROFIT & LOSS A/C 1 APR 2007 to 31 MAR PARTICULARS OPENING STOCK
PURCHASE ACCOUNTS
DIRECT EXP-
R2008 PARTICULARS
42,04,811.78
3.58%
10,02,60,189.85 45%
1,36,25,556.44
SALES ACCOUNTS 11,73,37,658.78 100%
CLOSING STOCK
76,37,344.12 6.52%
.44 11.61%
192
GROSS PROFIT
68,85,045.50 5.87%
TOTAL
12,49,75,602.90
TOTAL
12,49,75,602.90
INDIRECT EX-
1,21,63,447.15 10.3%
GROSS PROFIT b/f
68,85,045.50 5.87%
INDIRECT EX-
10,64,855.44 5.87 %
NETT LOSS
42,13,546.21
TOTAL
1,21,63,447.15
TOTAL
1,21,63,447.15
MAGADH DAIRY PROFIT & LOSS A/C 1APR 2008 TO 31 MAR 2009
PARTICULARS OPENING STOCK PURCHASE ACCOUNTS DIRECT EXPGROSS PROFIT
INDIRECT EX-
76,37,944.12 13,43,65,515.47 1,30,40,797.57 17,00,44,111.44 1,49,99,854.28
97,59,432.39
PARTICULARS SALES ACCOUNTS CLOSING STOCK
15,08,26,741.76 1,92,17,369.68 17,00,44,111.44
GROSS PROFIT b/f
1,49,99,354.28
INDIRECT
1,97,563.17
193
3.59%
INCOMES
NETT PROFIT
54,37,985.06
TOTAL
1,51,97,417.45
TOTAL
Magadh Dairy, Gaya Ratio Analysis 1-Apr 2007 to 31-Mar 2008 Principal Groups Working Capital Cash-in-hand Bank Account Bank OD A/c Sundry Debtors Sunndry Creditors Sales Accounts Purchase Accounts Stock-in-hand Nett loss Wkg. Capital Turnover Inventory Turnover
1,51,97,417.45
r2009) Principal Ratios Current Ratio Quick Ratio Debt/ Equity Ratio Gross Profit % Nett Profit % Oprating Cost %
1,72,31,056.94 Dr 72,439,62 Dr 73,68,766.62 Cr 0.00Cr 13,51,688.69 Cr 27,81,725.69 Cr 15,08,26,741.76 Cr 13,43,65,515.47 Dr
2.82:1 0.29:1 0.35:1 9.95% 3.61% 96.40%
Recv.Turnover In days
58.55days
Return on Investment % on Wkg. Capital Return %
1,92,369.68 Dr
13.04% 31.56%
54,37,985.06 Cr 8.75 7.85
Magadh Dairy , Gaya Balance Sheet 1 APR 2007 TO 31
194
mar Liabilities
Assets
Capital Account
2,48,44,496.55 41.48%
Fixed Assets
2,19,81,932.46 36.70
Loan(Liability)
82,73,154.19 13.81%
Investment
1,58,91,151.00 26.53 5%
Current Assets
83,45,874,94 13.93 %
Profit &Loss a/c
13678658.11 22.84%
Total
5,98,97,616.51 100%
Current Liabilities
1,28,51,922.20 2146
Branch/Division
1,39,28,043,57 23.25%
Total
5,98,97,616.51 100%
Magadh Dairy , Gaya Balance Sheet 1 APR 2008 TO 31 march2009 Liabilities Capital Account
3,62,68,969.45 48.3%
Assets Fixed Assets
2,24,51,495.68(29.9%
Loan(Liability)
1,45,26,354.19(19.3%
Investment
1,75,91,151.00923.4%
Current Liabilities
94,66,849.89(12.6%
Current Assets
2,66,97,906.83(35.5%
Branch/Division
1,47,19,053.03(19.63
Profit &Loss a/c
82,40,673,05(10.9%
Total
7,49,81,226.56(100%
Total
7,49,81,226.56(100%
TRAINING-INTRODUCTION
195
0%
Training is often included as an essential element of an organization’s strategy to gain a competitive advantage. Every Organization needs the services of trained persons for performing the activities in a systematic way. The fast changing technological development makes the knowledge of employees obsolete so every concern has to arrange some kind of training for preparing workers for job and also keeping them acquainted with latest technological advancements. In Indian Organizations training activities has assumed high importance because of their contributions to the organizational objectives.
MEANING Training may be viewed as a systematic and planned process with a purpose to impart & provide learning experiences that will bring about improvement in an employee. It is an organized procedure for increasing the knowledge & skill of people for a specific purpose. Training improves the performance of employees on present jobs and prepares them for taking up new assignments in future.
DEFINITION ACCORDING TO EDWIN B. FLIPPO, “Training is the act of increasing the knowledge & skill of an employee for doing a particular job”. ACCORDING TO MICHAEL J. JUCIOUS, “It is a process by which the atitudes, skills & abilities of employees to perform specific jobs are increased”.
OBJECTIVES OF PROVIDING TRAINING 196
1. The basic objective of training is to help develop capabilities of the employees by upgrading their skills and knowledge. 2. Training aims to help the existing employees in improving their level of performance on their present job assignment. 3. The aim of training is not only providing new knowledge & job skills but creating in them self consciousness & a greater awareness to recognize their responsibilities. 4. The main objective of training is to bring about efficiency and effectiveness in the organization for its existence in competitive market situations. 5. Training is a pre-requisite to prepare human resource for new jobs, promotions & changeover to modern technology & equipment. 6. Training is also given to establish continual development of workforce in terms of product quality, attitude etc. with attention to the satisfaction of customer requirements. 7. As required by TS standards, training is imparted to employees based on identified technical behavior and organizational needs.
NEED FOR PROVIDING TRAINING TO EMPLOYEES Training of employees is essential because work-force is a valuable asset to an organization. Training is important for the following reasons: 1. Increased productivity 2. Higher employee morale 3. Less supervision 4. Less wastage 5. Easy adaptability 197
6. Reduced absenteeism and employee turnover 7. Employee development 8. Helping in solving problems 9. Increased organizational stability and flexibility 10. Result in quality goods and services 11. Reduces satisfaction, complaints etc. 12. Increased confidence and efficiency 13. Helps employees adjust to change 14. Creates an appropriate climate for growth, communication 15. Reduces outside consulting costs by utilising competent internal consulting. 16. Provides information for future needs in all areas of the organisation.
TRAINING METHODS Training methods are means of attaining the basis of level in a learning situation. These methods can be grouped on the basis of level of personnel in the organization the following types of trainings are generally in use:
Induction training: This type of training is given to help a new entrant for adapting himself to the new environment. The employee is given a full description of the job he expected to do & informed about the rules, policies and procedures.
On-the-job training:- In this method the worker is trained on the job and at his work place. He gets training under the same type of conditions in which he will be working
198
later on. Success of this method depends upon the quality of trainer so trainers should be carefully selected.
Off-the-job training:- This consists of lectures, conferences, group discussions, case studies, program instructions
seminars, brainstorming, and mgmt. Games etc. This
method is generally used by govt. and public enterprises by establishing separate schools.
Apprenticeship training:- In this method a worker is attached to an experienced or senior worker. The worker learns by observing his senior and helping him in his tasks. This method is mostly used in technical jobs.
Refresher training:- It is helpful in acquainting personnel with latest improvements in their work. The changing technological methods require fresh training to existing employees which helps in refreshing the memory of employee.
Vestibule training:- The word vestibule denotes a room between the outdoor & interior of a building. This term is used to impart training in a classroom on plant. It means workers are trained at some place in factory & special instructors are appointed for this job.
TRAINING PROCEDURE Training is a learning experience, which brings about relatively permanent change in an individual, improving his ability to perform a job. It means changing what employees know, their way of working, their work attitude or the level of interaction they have with their superiors or colleagues. Often an organization will be aware that training needs exist but for one reason or another will not be in a position to identify specifically what those needs are. Part of Identification of Training Needs includes providing an action plan for meeting organizationâ&#x20AC;&#x2122;s Training needs.
199
Identification of training needs provides the basis on which all other training activities can be considered. Also requiring careful thought and analysis, it is a process that needs to be carried out with sensitivity. It is important to know exactly what you are doing. A particular process should be followed and completed in order to get high results of the training. A training program essentially involves seven steps:
DISCOVERING/IDENTI FYING TRAINING NEEDS
DESIGNING THE PROGRAMME
CREATE TRAINING MATERIALS & TOOLS
200
APPLICATION OF TRAINING TECHNIQUES
PERFORMANCE TRY OUT
FOLLOW UP
IMPLEMENT SUGGESTIONS AND IDEAS
201
BENEFITS OF TRAINING:Training is beneficial to both the organization as well as to the individuals. They are as follows:
TO ORGANIZATION: Leads to improved profitability Improves job knowledge at all levels Create a batter corporate image Fosters authenticity and trust Provide information for future needs in all areas of organisation Increasing quality of work Helps in keeping cost down Improves labour-mgmt. Relations Aids in improving organizational comm.
202
Helps employees adjust to change Aids in handling conflict
TO INDIVIDUAL: 1. Better decision making & effective problem solving 2. Encourage self development & confidence 3. Helps a person handle conflicts 4. Improves comm. Skills, attitudes 5. Increasing job satisfaction & recognition 6. Develops a sense of growth in learning 7. Eliminate fear in attempting new tasks
Training needs: A training need exists when there is a gap between the present performance of an employee and desired performance. This gap can be determined on the basis of a ‘skill analysis’ as follows:1. Analysis and determination of major requirements of the specific job. 2. Identification of tasks needed to be accomplished to meet job requirements 3. Understanding procedures need to be accomplish each of the job tasks 4. Analysis of knowledge and skills
203
5. Identification of any special problems & analysis of any particular skills needed to meet the problem. THUS, TRAINING NEEDS = JOB REQUIREMENTS â&#x20AC;&#x201C; EXISTING SKILLS
TRAINING POLICIES AND PRINCIPLES: PRINCIPLES: Certain training principles are widely followed in building human resource skills especially at rank and file level. The major psychological principles followed in training are:-
Learning principles: it refers to modifications in behavior related with experience or training. The steps necessary for learning to take place are:1. Stimulus 2. Response 3. Motivation/ drive 4. Reward/ incentive
Teaching basic work skills and physical movements :- the principles of teaching work skills include: 1. Employee should be taught only correct methods of work 2. Accuracy should be more stressed than speed 3. Incentives should be used 4. Trained trainers should be used
204
Principles for foreman:- there are training principles for foreman. They activate the learner, encourage participation, facilitate and assist understanding etc. These reduce training time & enhance employee motivation.
POLICIES: Training should be formulated by the line personnel with the assistance and advice of staff. The policy should indicate training objectives Training policy may emerge from different elements of training needs The objective of training policy is to ensure that every employee is offered the opportunity to attain skill and knowledge It should be the policy of enterprise to conduct trainings that is fit to individuals with their jobs.
TRAINING—THE EMERGING CHALLENGES Make learning one of the fundamental values of the company Commit major resources and adequate time to training Use training to bridge the gap with the external world. Use training as a developmental tool for individuals Install training systems that substitute work experience Use retraining to continuously upgrade employee skills
205
Create a system to evaluate the effectiveness of training.
EFFECTIVE TRAINING The efficiency of any organization depends directly on the capability of their personnel. The capability of a person depends upon the ability to work and training he receives so the training should be taken proper care of so that it must leave high effect on employees and benefit them. The training is effective if it is helpful to employees to do their work with more ease and that increase their efficiency as well as interest in doing job. Training can be more effective in making human resource skills with aid of behavioral science knowledge
EVALUATION OF TRAINING PROGRAMMES There are several techniques for assessing effectiveness of training programs like Using checklists Rating scales Cost account techniques Psychological tests Learning curves By discontinuing them
TRAINING CAN ALSO BE EVALUATED AT FOUR LEVELS:-
206
Reaction: how well they like the program? Learning: what was learned by the trainee? Behavior: what learning was transferred to job? Results: what results were observed & what benefits accrued to organization? The persistent effects of training on behavior over a long period indicate the Effectiveness of Program.
EVALUATION OF TRAINING EFFECTIVENESS:Evaluation of training effectiveness is a highly desirable step in total training programs so that one can judge the value of training Training evaluation is an attempt to obtain information on effect of training program and access value of training. Long term training effectiveness can provide more meaningful and qualitative measurements.
Training Evaluation: Purpose The training evaluation is a means by which participants express their feedback regarding the effectiveness of training through a series of quantitative and qualitative survey questions completed at the end of the training program. Participant reaction to training can represent instrumental feedback that can drive important changes in any part of the
207
training delivery process, such as refining of training materials and methods or revisions to content. This feedback can also be extremely useful in predicting performance after the program. Training evaluation questions on the importance and relevance of the training to the job have been shown to have a correlation to actual use of skills and knowledge learned on-the-job.
Classroom Training Evaluations Classroom training evaluations gather quantitative feedback on the training effectiveness of the following twelve areas: Learning Objectives Met Knowledge Increase On-the-Job Confidence (in meeting Performance Objectives) Business Impact Estimation Effectiveness of Materials and Methods Overall Reaction Program rating Pace Length Relevance Importance Facilitator Evaluation
208
HOW TO MAKE TRAINING EFFECTIVE ? Training objectives should be outlined on the basis of type of performance required. Organizational conditions should be conducive for work and good immanent There should be major resources & adequate time for training A comprehensive & systematic approach to training is ensured
IMPEDIMENTS TO EFFECTIVE TRAINING: Mgmt. Commitments is lacking & uneven Inadequate spending on training Behavioral objectives are often imprecise Large scale poaching of trained managers Trainers provide ltd. Counseling and consulting services
IMPROVING THE EFFECTIVENESS OF TRAINING:There are at least ten issues which improves effectiveness of training:
Training need identification:209
An effective system of training-needs identification ensures that the employee is getting training in the area required by them
Pre-training activities:Every superior s d to explain to his subordinates the rationale and benefits of attending training.
Planning and organizing program:A crucial area towards training effectiveness: location, facilities at training venue etc. have great impact of learning
Designing the module:- training manager should discuss the module with the faculty otherwise the program fails to achieve its objective
Feedback on the faculty: Company officials should conduct a course evaluation discussion upon completion of program.
Feedback from external faculty:Seek feedback from external faculty on participation level of trainees, training infrastructure in company and training support receives from the company. It will be useful in improving training effectiveness.
Training plan and budgets: Every organization plans its activities on periodic basis. Thus training calendar should include details of modules, faculty cost, cost of equipments etc. This gives a tremendous focus to entire training function.
210
Development of in-house faculty: Another thrust area many companies are focusing their attention on is the development of in-house faculty to conduct various training courses as he is able to provide inputs of the highest quality to his colleagues & juniors.
Quality training focus:We need to ensure that quality of training is overriding factor over quantity of training which is the current fad in the mgmt. Circuit should also be applicable to training function. Firstly, I was asked to increase the retail universe of Sudha ice-cream by making the new Sudha retailers and distributors by providing the deep freezer scheme. I have to go to the different retailers present in the Greater Noida market and tell them about the new scheme given by the company. This new scheme helps us to convence them about the product .
I have taken visited all the retailers outlets of the Gr. Noida to know well about the market of ice-cream in these areas. I have to collect the report about delivery problem, replacement, Schemes given by Sudha Company, distribution problem any other problem facing by the customer or retailers regarding any product of Sudha ice-cream as well as Sudha Products.
The project is regarding, â&#x20AC;&#x153;To increase retail universe of SUDHA schemeâ&#x20AC;? which would enable the company to expend the market of SUDHA Product and with hold the good position among the competitors.
211
COMPFED. ltd. is largest food production marketing organization. It is a state level body of milk co-operatives in Gaya which aims to provide remunerative returns to the farmers and also to serve the interest of customers by providing quality products. It is known as a brand SUDHA. In the project the emphasis was given to increase the total sale of distributors and retailers. Visit to the different retailers in the Gr. Noida region, was to increase the retail boundaries of SUDHA product and to know the problem regarding Sudha Iproduct, to know whether there is any delivery problem by distributor, to know that whether the sales man of distributor is regularly visiting the retailers in targeted areas, to check the supply of ordered goods are on time and finally to look on the retailers problem while selling the Sudha product. Sudha product is very popular among the customer and the sale of the product is not very good in Gaya. Through my project the problem is short listed i.e. lack of supply of product on time by Sudha distributors and very good scheme were provided from revelries companies. According to me the COMPFED Ltd. would have to take extra ordinary effort to capture the market share of Sudha Product. On the very first day we were provided with the scheme of the deep freezer which is as below : This is the scheme provided by the SUDHA to us to increase the retail boundaries of SUDHA Ice-cream I have taken visited all the retailers outlets of the Gr. Noida to know well about the market of ice-cream in these areas. I have to collect the report about delivery problem, replacement, Schemes given by Sudha Company, distribution problem any other problem facing by the customer or retailers regarding any product of Sudha icecream as well as Sudha Products. To enable the company to expend the market of SUDHA Ice-cream and with hold the good position among the competitors. I have taken visited all the retailers outlets of the Gr. Noida to know well about the market of ice-cream in these areas. I have to collect the report about delivery problem, replacement, Schemes given by Sudha Company, distribution problem any other problem facing by the customer or retailers regarding any product of Sudha product as well as Sudha Products.
212
In the project the emphasis was given to increase the total sale of distributors and retailers. Visit to the different retailers in the Gr. Noida region, was to increase the retail boundaries of SUDHA product and to know the problem regarding Sudha product, to know whether there is any delivery problem by distributor, to know that whether the sales man of distributor is regularly visiting the retailers in targeted areas, to check the supply of ordered goods are on time and finally to look on the retailers problem while selling the Sudha product. When we visited to the retailers or distributors we start our introduction like this â&#x20AC;&#x153; good morning / evening sir , we had come behalf of SUDHA with very attractive scheme for you, it will surely help to increase your sales with high profit margin, would you like to lesion the scheme. On this introduction all the retailers were ready to lesion our scheme, but there were many weak points of this scheme like no availability of installment facility were provided to them. This was the main problem arises while doing our job. Many had told that many companies provide freezer free of cost to keep there products. When we had visited to many retailers about our scheme the mostly had given the negative response because of the electricity problem .There was also the problem related to the bad distribution. The response of many retailers was not good towards the distribution channel of SUDHA there complaint about the timely distribution and the product in demand is not provided at that time. The many of the retailers had already having the deep freezer so they havenâ&#x20AC;&#x2122;t shown the interest for the new one. Many of the retailers were not interested because of the electricity problem. Many had already purchased the deep freezer in the month of February and March and there response were that where was our scheme at that time.
213
OBJECTIVES To increase the market shares of Sudha in Gaya. To convince the retailers about the Sudha outlet, and take orders for the product. To develop the marketing strategies for sudha to increase the sales. Problem recognition and discovering ideas to provide new solutions to the problem. To find out the problems and try to point out the cause of the problem.
214
Specific objectives: Convince the distributors to include the untapped retail outlets in their beats. To find out the problems and try to point out the cause of the problem. To study the satisfaction level of the retailer pertaining to service offered by Sudha.
Provide the chance to retailers to get a deepfreezer at discount of 30% less then market price .
Sudha brings a chance to get there own deepfreezer.
Easley availability of Sudha product to the consumers.
To increase the retail profit boundaries of Sudha product.
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CHAPTER-15
FINDING AND LIMITATION FINDING From the responses got from the survey done through assignment and through my observations I have been able to find the following facts: Not all the members of the organization are aware of the training policies and procedures. No doubt the policies are followed with great efforts but still there is a need to apply them with more accuracy and strictness. The training need identification processes are appropriate in finding the developmental needs of employees and training programmes are organized accordingly in order to fulfill those needs. Training calendar are also formed on the basis of identified training needs Monthly plans for providing training are prepared and followed properly. Duration of training programmes is set according to the topic concerned. It is generally from two to three hours. Proper methodology is used while providing training but only on-the-job and off-thejob training methods are used.
216
ď ś In case of training personnel, both internal and external faculties are called for providing training keeping in mind the wideness and importance of training agenda. ď ś The facilities provided during the training programme like infrastructure and refreshments are excellent. ď ś Overall the trainings provided to the employees in the company are good and employees are satisfied with them to a great extent .
LIMITATION 1. All of the retailers were not so co-operative. As they were very busy with direct selling process, so they hardly get any free time for such discussion. 2. In our project we were suppose to visit every retailer in Gaya market but due to some unavoidable circumstances like weekly holiday, occasional holiday, we could not visit all the retail outlets. 3. Lack of proper information and experience also became hurdles for us. Some particular sectors of Gaya were so crowdie and disarranged that it became quite impossible for us to visit those retail outlets present there.
217
4. Off course, money also played a vital factor in the whole project duration.
CHAPTER-16
SUGGESIONS AND RECOMMENDATION SUGGESTION Training duration: It should be increased Sometimes extended it two-three days
Training personnel/faculty: Need more expertise Should be skilled and knowledgeable Must have good communication skills
Training evaluation: It is regularly done but methodology need changes Should be more realistic
218
Training facilities: Facilities provided are good but venue should be sometimes changed to some external place.
Effectiveness of training: Should be monitored on regular basis Measures should be taken to improve effectiveness
Training methods: New techniques must be adopted More of practical demonstrations should be included in training programmes
RECOMMENDATION After the thorough study of company‘s policies and systems I would like to give following recommendations: Human resource and development department must try to make all the employees aware of their training policies. It should be taken proper care of, that the policies are followed full and fairly. Duration of training programmes may sometimes create problems as different individuals have different thoughts about It so it should be discussed with the trainer and the trainees. Providing various facilities during training is good but hey should not be too much that the main purpose of training is spoiled.
219
Other than Jot’s, some new and advanced methods of raining should also be adopted. General awareness programmes should also be conducted at regular intervals as they make the executives alert of advancement and will be able to enhance the personal and organizational effectiveness. Here must be more of practical demonstrations I provide he workers real experiences. Trainees should be provided with proper assistance when he encounters learning obstacles. After completing the project, there are few recommendations, which should be implemented if possible. It will provide expected and encourage the milk market of Sudha. It will also help in increasing the market share of Sudha in Gaya . According to the 4 p’s of marketing strategies are:
PRODUCT STRATEGY: 1. Sudha company should provide small pack of milk chocolate, Fundoo and Bindas that increase sale of chocolate because children like small pack of chocolate so that they can take it daily. It will generate new demand in the Gaya 2. Sudha should start making wafer chocolate because sale of wafer chocolate of Cadbury and nestle is very high in Gaya.
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3. Most of the retailer complaining about the problem regarding the replacement of Sudha products. So, the company should look into the matter for their good reputation. 3. In the summer season, the Sudha chocolate is very hard to keep it as it is so, company should provide a dispensionsary.
PRICE STRATEGY: 1. Sudha don’t provide any scheme to the distributor or retailer but other company provides scheme. 2. Profit margins of Sudha to the distributor or retailer is less than the Sudha & any other. So, the Sudha Company provides equivalent profit margins as other company provide.
PLACE STRATEGY: 1. In Gaya Sudha has only one distributor which having all the retailer outlets, so, it should be at least one more distributor to release the pressure on the single distributor.
2. There are number of c- grade area where people are not aware of Sudha’s product. They are only knowing about milk of any brand. So Sudha should take special focus on their area to increase the market share of Sudha . Sudha should provide special campaign to those places to know about Sudha and Sudha’s product.
3. In different places of Gaya there are many non- listed outlets by Sudha distributors so, it should be listed by the distributors.
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PROMOTIONAL STRATEGY: 1. Supply of adequate product regularly to all retailers of Sudha and threats of its competition so, that it can attract the potential customers.
2. Sudha should provide the lists of its products to all the retailers. 3. There should be more schemes for retailers after completing their sales target at a given period.
4. In Gaya, Sudha can improve its market share by regular performance of promotional activities, they should adopt it by canopy , attracting hoardings , banners and advertisement in azines and newspaper.
5. Sudha should sponsor for the socio-cultural activities organized in Bihar & Jharkhand. 6. Sudha should change their packing of milk at regular interval of year, they should not stick to only one packing.
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CHAPTER-18
LEARNING WHILE EARNING It is very important in organisation to have clarity of roles and unity of command. I observed that this feature was not focused upon in branch after an organisatinal restructuring. Employee at the branch was not very clear about the reporting mechanisms, the flow of command and formal authority. This had an negative effect on employee moral irrespective of the leadership. Impact on entry level employee was the most, they ended up being frustrated because unclear authority and command. Generally organizations focus more on either marketing or finance in the organization and make the Endeavour to make these functions as efficient as possible. But in the process they donâ&#x20AC;&#x2122;t have much focus on operations. I find operation at Magadh dairy project(sudha) inefficient and wanting. They have serious complication on functioning and loss of business to competitors. I believe that this function should also be provided be given more attention and should be equipped with not only better technology but also more efficient work force. During my summers at Relegated Securities, I was fortunate enough to experience two different kind of leadership style. Not commenting on any one it , I just want to say that they had major impact on the way the branch function, level of satisfaction of employees , cost cutting, and most important of all revenue generated. So leadership is 223
one area where top management should be very careful and focused as they form important part of any organizational success.
Technology plays a major role in organizational functioning. Although it is an established fact that technology helps in smooth functioning of organization. But I observed it myself at Magadh diary project . The BOS ( back office support ) system is one of the major strength of Magadh diary project, it is one tool which keeps kotak ahead of its competitors by helping in better query handing , trouble shooting and having a more satisfied customer.
ACHIEVEMENTS During my job profile I represented the Bihar State Co-Operative Milk Federation ltd. I have learned about the practical knowledge of the market. It helps me in improving my communication skill. I have got an idea that how to impress the retailers who are a real business man. It helps me in making the new contacts. I introduced with the various situations which I will face in the future when I will be in job. I have learned how to handle the various conditions. I came to know the various conditions of the competitive market. Also I collected some big order during my job profile. I take the feedback regarding the Sudha products like (a) Is the quality of product is good. (b) Is distributor provide timely supply. (c) Is the rate of products are right. So these are achievements to me during this summer internship programme.
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CASE STUDY DIVERSIFICATION OF PRODUCTS Across India, every morning, millions wake up to the taste of SUDHA, the flagship brand name for a variety of dairy products marketed by the Bihar State Co-Operative Milk producers Federation (compfed)). One could start the day by boiling (as is the traditional Indian practice) one of the different varieties of liquid milk supplied in pouches and making oneâ&#x20AC;&#x2122;s morning tea or coffee. If one preferred to use creamer, one could reach for the SUDHA creamer on the shelf. For the breakfast, butter the toasts with SUDHA regular butter or, if you are calorie conscious, with SUDHA Lite butter. Drink a cup of SUDHA chocolate milk. Make sandwiches with one of the different varieties of SUDHA cheese and take them to the office; add SUDHA ghee (clarified butter) to oneâ&#x20AC;&#x2122;s dishes for lunch; cook your lunch with a curry containing SUDHA paneer or cottage cheese and have a sweet dish made from SUDHA gulab jamun mix. If it is a hot day, have an SUDHA ice cream; and when you return home after the office; relax with tea or coffee, whitened with SUDHA creamer or SUDHA milk. If you are a pizza fan, bake a pizza and top it with SUDHA mozzarella cheese, and finally retire for the day with a glass of warm SUDHA milk. In India, SUDHA was not merely one of the most well known brands, way ahead of Coca Cola or Pepsi, and even ahead of age old brands such as Dalda, Lifebuoy and Lux, but a life style range of products, consumed in some form or other by a large number of Indians of different income and social strata.
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COMPFED was the sole marketing agency for the products produced by the different milk co-operative member societies of the State of Patna (see Exhibit 1 for a brief note on Patna and Exhibit 2 for a map of India showing Patna) and for those of other States marketing their products under the SUDHA brand name. There was no doubt that from the time of its inception in 1973, COMPFED was a great success story, as indeed was the co-operative movement in the milk sector initiated and carried to great heights by the “milkman of India”, Dr. Verghese Kurien. But as on the year 2000, COMPFED was faced with a question of whether it should stick to its core business in dairy products, or diversify into other products, in particular into processed foods such as jams, sauces and fruit juices.
CONCLUSION After Completing field Study Related to the project, We Draw Following Conclusion 1. Gaya is very huge market of Sudha’s product and the main player of this product are : •
SUDHA
•
AMUL
•
LOCAL PRODUCT
•
IMPORTED PRODUCT
2. Among these brands the sale of Sudha’s is very high and it is followed by Sudha 3. Sudha is top in the list among different brand in Gaya. 4. Most of customer prefers Sudha’s product than other. 5. Share of sudha is increasing very gradually and it is good sign for the Sudha company.
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7. sudha is not properly aware of the promotional activities regarding Product. 8. Due to electricity break down problem in Gaya effects the Sudha’s product or other’s product very much especially in summer seasons. 9. Best season for Sudha’s product is the time of festival like Durga puja, Dipawali, id, bakrid, Holi. 10. In the Gaya the sale of Sudha’s milk, chease is very high because of marriage ceromony. 11. In the month of May and June the school, colleges are usually closed in this period so, the sale of Sudha Ice-cream is goes decreasing in this period. 12. During our project, we find that the distribution channel of Sudha is not good in Gaya region.
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WORD OF THANKS I take the opportunity to pay hearty regards to Dr. D. K . GARG (Chairman), Mr. M. K. VERMA (Dean) for lending me their kind support for completion of my project. I thank all those who directly or indirectly supported me morally, financially and through providing knowledge by which I could complete my Research.
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Last but not the least I am thankful to the management of COMPFED. and specially to my guide Mr. K.K.Sharma whose co-Operation and guidance was a milestone in completion of my project.
BIBLIOGRAPHY BOOKS: AUTHOR:
PHILIP KOTLER
TITLE:
MARKETING MANAGEMENT
PLACE OF PUBLICATION:
DELHI
BOOKS:
229
AUTHOR:
GUPTA SHASHI K. and JOSHI ROSY
TITLE:
Human Resource Management
PUBLISHER:
Himalaya Publishers
www.COMPFED.com
Article: Our products About the organization
www.indiadiary.com
Articles: History of Sudha Government policy
SEARCH ENGINES:
Articles:
www.google.com
Competitors,
www.yahoo.com
Attractive features of the Company
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THANKING YOU
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