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1
COMPANY PROFILE
NAME OF THE COMPANY:
KANYAKUMARI DISTRICT CO-OPERATIVE MILK PRODUCER’S UNION
LTD.,
BRAND NAME:
Aavin
The kanya kumari district co-operative milk producers union Ltd., is a co-operative
organization and it has been registered under co-operative societies Act on 25th
January 1949
(25.01.1949) under registration no 2946. The union started functioning on 7th
February 1950
(07.02.1950). Later it was elevated as NANJIL NADU MILK supply co-operative union on
January 1951 and during 1961 it was renamed as kanya kumari district co-operative union. Then
again it was converted as kanya kumari district co-operative milk producers union Ltd.,. This
dairy is located at NAGERCOIL, the head quarters of kanyakumari district.
THE MANAGEMENT
The elected board of this union was superseded and the District collector was appointed
as special officer (S O) with the effect from 26.05.01 and Mr.Ashish kumar, IAS, the District
collector is the current special officer of this union. Mr.C.RAJU,,Bse,IDD is the present
General Manager of this union.
Artificial insemination
To improve the variety and introduce different breeds of cattles in their member societies,
the Artificial insemination scheme had been introduced in this union from 22-09-1988. The
union is taking various steps to provide adequate training to its employees to do AI by sending
them various training institutes and place them in different societies to do AI services to the
cattles of member societies.
2
Intensive dairy development program
Intensive dairy development is being implemented in this union at a total financial out lay
of Rs. 291.77 lakhs for modernization of AI, strengthening of infrastructure of the union and for
creation of societies. So far Rs.189.83 lakhs had been received from the government and related
work is going on and balance amount of Rs. 101.94 yet to be received from the government.
DAIRY AT A GLANCE
Date of registration 25.01.1949
Date of functioning 07.02.1950
Conversion as producer’s union 16.02.1982
Area of operation Entire kanyakumari district
Total number of societies 112
Functioning of societies 77
Societies operated by women 33
Dormant societies 35
No. of societies supplying milk to union 42
Milk Pouring members 4506
Total members 40527
Procurement per day 39164 liter
No. of liters of milk procured by union 6564 liter
Number societies doing artificial insemination 18
Dairy capacity 30000 liter
Pasteurization capacity 5000 liter per hour
Milk storing capacity 45000 liter
Boiler 0.5 liter
Milk peda producing capacity per day 160 liter
Milk payment For every 15 days
Milk purchase rate Based on quality
3
ORGANISATIONS STRUCTURE
Organization structure is the pattern of relationship among components or parts of the
organizations. This prescribes the relationship among various activities and positions
Organization structure can be best explained through an organization chart. An organization
chart is the vital tool for providing information about organizational relationship.
An organizational structure consists of activities such as task allocation, coordination and
supervision, which are directed towards the achievement of organizational aims. It can also be
considered as the viewing glass or perspective through which individuals see their organization
and its environment.
The set organizational structure may not coincide with facts, evolving in operational action. Such
divergence decreases performance, when growing. E.g. a wrong organizational structure may
hamper cooperation and thus hinder the completion of orders in due time and within limits of
resources and budgets. Organizational structures shall be adaptive to process requirements,
aiming to optimize the ratio of effort and input to output
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Input and
procurement
Finance Marketing Administration Quality control Production
Deputy
Manager-
1
Deputy
Manager-1
Manager
dairy-1
Manager
administration-1
Executive
officer-1
Manager dairy
chemistry-1
Dairy Transport Store
Executive
officer-1
Executive
officer-1
Executive
officer-1
Junior executive typist-1
SFA-1
Junior executive-5
Junior
executive
Drivers-7
TECH-1 TECH-4
TECH-2(lab)
SFA-24 SFA-20
General Manager
ORGANIZATION CHART
5
STAFF STRENGTH
Designation No of staff
General manager 1
Manager admin 1
Manager dairy 1
Manager DC 1
Deputy manager 2
Executive officers 4
Junior executives 7
Junior executive typist 1
Drivers 7
Technicians 6
Senior factory assistants 45
TOTAL 76
6
PRODUCT PROFILE
Kanyakumari district co-operative milk producer’s union has been producing variety of dairy
products by its own and also it buys some dairy product and raw milk from other unions (such as
Trunelveli, salem and Erode unions etc.,) and sell it through its various marketing channels this
district.
The following are the products which are produced here at present.
� Double tonned milk
� Cow milk
� Badam mix powder
� Milk peda
� Butter milk
� Floured milk
Buying and selling products
There are some products which have been bought from other co- operative union and sold under
trade name Aavin.
The following are the products that have been bought and sold here
• Ghee
• Butter
The above products are been sold under the common brand name of Aavin
7
FUNCTIONAL AREAS OF THE COMPANY
The organization has many functional areas under the top management of general
manager and his subordinates. The organization has various departments which are working
collectively as well as independently to enhance the output of the organization.
The following are the major functional areas which fall under detailed study in this
project
� Input and procurement
� Production
� Quality control
� Administration
� Finance and accounting
� Marketing
In this project, the above departments have been studied in detail and some findings and
suggestion are put forward to uplift or develop the organization.
8
FUNCTIONAL DEPARTMENTS OF AAVIN KUMARI
1-Input and procurement department
The input and procurement department is headed by the general manager and he is
assisted by one deputy manger and a junior executive.
Everyday the co-operative union procures raw milk from the member societies. But few
of their member societies may not supply milk regularly to the union. This may create
fluctuations in procurement amount. However, there are sufficient milk producing member
societies that supplies raw milk to the union on a regular basis.
General Manager-1
Junior executive-1
Deputy Manager-1
Area of operation of this union
The diagram represents different area of the operation from which the company gets raw milk
from the suppliers and the company
bring to the union for production process and
this union and among that 77 are function
operated societies.
vilavan kodu Taluk
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Area of operation of this union
The diagram represents different area of the operation from which the company gets raw milk
the company collects the raw milk from the cooperative societies and
to the union for production process and it is to be noted that there are 112
77 are functioning and 35 are dormant 33 societies are
kanya kumari milk
producers union Ltd
kalkulam Taluk
Agatheeshwaram Taluk
Thovali Taluk
The diagram represents different area of the operation from which the company gets raw milk
from the cooperative societies and
112 societies under
33 societies are women
10
There are five procurement routes in kanya kumari milk producer union
namely;
The above are the various milk procurement routes. The company procures and collects the raw
milk from these routes. It is again to be noted that out of 77 co-operative societies only 42 are
giving raw milk to the union.
PROCUREMENT ROUTES
Azhagappapura
mManavala kuruchi
Kanyakumari Kadayal Therisanam koppu
11
A table showing procurement details
Total number of societies 112
Dormant societies 35
Pouring members 4506
Total members 40527
Total animals 20832
Avg. procurement per day 39164 liter
Avg. raw milk per day 6564 liter
12
2-Production department
The above graphical representation shows the present position of hierarchy of authority in
production department. As shown in the picture, production department is headed by general
manager and is controlled by manager dairy. He is assisted by a junior engineer. The personnel
working under the junior engineer are Electrician, mechanic, operators and boiler man.
Manger dairy
Dairy Transport Store
Technician-1
SFA-20
Technician -4
Drivers-7
Executive officer-1
The raw milk is collected from the societies and
homogenizing, milk sample from each union is
content in milk. If the SNF content
to increase SNF content and there
(skimmed milk powder) the milk undergoes pasteurization process.
involves several stages. In the first stage
73.5ºC to 80 ºC & the same temperature would be maintained for few seconds (this stage is
called Holding stage) then it will
down to 4 ºC,. This pasteurized milk would be stored in
Production process
Raw milk
process process
Laboratory
13
Production process
The raw milk is collected from the societies and brought to the union. Before
from each union is taken by laboratory for testing FAT and SNF
content in milk is less than 8.0%, the skimmed milk powder is added
and thereby milk standardization is executed. After adding SMP
milk undergoes pasteurization process. The pasteurization process
first stage, milk is heated by using steam and
same temperature would be maintained for few seconds (this stage is
it will be cooled suddenly by 4 ºC water circulation and
pasteurized milk would be stored in double jacketed tanks.
Homogenization
processPasteurization
process process
brought to the union. Before
for testing FAT and SNF
k powder is added
After adding SMP
The pasteurization process
steam and hot water up to
same temperature would be maintained for few seconds (this stage is
and after bringing
Packingprocess
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Pasteurization
Pasteurization is a process of heating liquids or foods to kill microorganisms (such as
Brucella, Campylobacter, E.coli O157:H7, Listeria, Mycobacterium bovis, Salmonella, and
Yersinia) that can cause disease. It was developed by Louis Pasteur in 1864, and the practice
became commercialized around the late 1800s and early 1900s. In addition to improvement in
consumer safety, pasteurization can enhance the quality and shelf life of foods.
Methods for Pasteurization
1. High Temperature Short Time Treatment:
Milk is pasteurized at 161 F for 15 seconds.
2. Low Temperature Long Time Treatment:
Milk is pasteurized at 145 F for 30 minutes.
3. Flash Pasteurization:
This type of pasteurization, which involves high temperature for 3 to 15 seconds
followed by cooling and packaging, is used for drink boxes and other liquids that can be
stored for long periods of time without refrigeration.
4. Steam Pasteurization:
Pressurized steam is used to kill E. coli, Salmonella, and Listeria in beef
carcasses. Exposure of the beef to steam results in a surface temperature of about 200 F.
5. Irradiation Pasteurization:
Exposure to gamma rays can prevent the growth of some foodborne microbes in
foods such as meats, spices, and produce.
6. Ultrapasteurization:
Heating milk or cream to 280 F for 2 seconds can extend the refrigerated shelf life
of milk from 60 to 90 days.
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7. Ultra-High Temperature Pasteurization
Heating milk to 280 to 302 F for 1 or 2 seconds followed by packaging in airtight
containers allows storage without refrigeration for up to 90 days.
Myths and Facts about Pasteurization
� Myth: Pasteurization reduces the nutritional value of milk.
Fact: Sterilization of milk does break down some of the components of milk, but the
actual effect on nutrition is considered marginal.
� Myth: Pasteurized milk causes lactose intolerance.
Fact: Lactose is the natural sugar found in milk. Both raw and pasteurized milk
contain lactose, and pasteurization does not change the levels of lactose. Raw milk
advocates argue that raw milk contains Bifidobacteria, a probiotic (beneficial bacteria)
that helps digest lactose. While raw milk may contain this probiotic, it results from
contamination from animal feces and is not considered beneficial.
Effects of Pasteurization:
� The ultimate goal in heat treating milk is to desttpy all pathogenic or disease-causing
microbes. Usually (but not always), assuming the machinery is functioning properly, the
process accomplishes this task effectively.
� Numerous studies have shown, however, that bad bugs are not the only thing destroyed
by the heat: delicate proteins, enzymes, immune factors, hormones, vitamins, mineral
availability- all undergo definite changes during the heating process. No one seriously
disputes this fact.
� What is not clear though, due to conflicting science and belief systems, is to what extent
the food value of the milk is actually impacted.
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Plant layout-milk pasteurization unit of Aavin kumari
Raw milk
Milk
pasteurization
machine
Steam
producing
boiler
Cooling plant
Pasteurized milk storage
tank
Burner
oil tank
Effluent
treatment
plant
Laboratory
Advanced packing
machine
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After pasteurization, the quality of milk is tested by the laboratory and if SNF is again
less, then the SMP is added and the similar process is repeated. Finally, the pasteurization milk is
stored in many tanks with the capacity of 5000, 10000, and 15000 liters.
If there is no problem in the quality of milk, then from storage tank the milk will be send
to Advanced packing machine, which uses poly film to pack the milk in various description.
Description of various machines observed
BOILERS
� Type 1 –horizontal boiler
Fire tube boiler
Make-veeson
Reg no-T6030
Ex capacity-1000/hr
� Type 2 – vertical boiler
Make-jaya boiler
Reg no-T4736
Model-j-vertical
Capacity-500kg/hr
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Compressors-1
Ammonia compressors
Sl.no.2867
Size 5 1/2×5 Rpm – 450
Compressors-2
Cold storge compressor
Make –frick India LTD
Type- HDI
Size 4×4
Pasteurizer
H.T.S.T pasteurizer
Type-81
Capacity-5000/liter per hour
SR n o 289.96-97
Date-2/2/1997
The mechanism of the above machines in the production department was observed during
my project study and the process of milk treatment such as packing, pasteurization process was
clearly explained in this department.
19
Plant lay out –milk peda production unit
Milk processor for producing milk
peda
Steam
producing
boiler
Steam
producing
boiler
Water level Water level
Burner oil
20
The milk kova or peda production is being carried out on regular basis but however, the
production of kova is low. The boiler cannot be switched on for milk peda production alone
.Therefore the production of milk peda is done along with the milk pasteurization process.
The average sales of milk peda per month are 10kg. For 10 liter of milk 1 kg of sugar is
added as a standard mix to produce milk kova.
Badam mix powder production
The badam mix power is the special by- product of this union and raw material for production
process is bought from external agencies and finished products are sold under the brand name
Aavin throughout the Tami nadu.
Mixture of raw materials for badam mix powder productio
The above raw materials are powdered and mixed in the mentioned percentage and
packed in such a manner that ensures quality, safety and attractive for customers.
Cane sugar 78%
SMP 11%
Badam nuts 7.5%
Corf loor 2.5%
Saffron essence 0.4%
Cardmans seed 0.5%
Lemon yellow powder 0.3%
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3- Quality control department
The quality control department is headed by the General manager and he is assisted by manager
QC and two lab technician.
Function
The raw milk will be sent to the lab for testing the fat and content and SNF using
LACTOMETER. The lactometer reading is considered according to the temperature of milk. The
process of testing starts by taking sample of 10.75ml of milk from each member societies and
that 10 ml milk dropped into butyro meter and to that 10 ml of diluted H2SO4 (sulphuric acid)
and 1 ml of Amy alcohol is added. Then it is shaken well and the meter is placed in a
CENTRIFUGE MACHINE. The machine will revolve with that butyro meter and by this
process the fat is separated.
METHYLINE BULE REDUCTION TEST
Methylene blue reduction test is a kind of quality test for checking quality of milk and it
is conducted by the use of methylene blue thiocyanate solution and a clear procedure for such
test is given below
Manager QC-1
Technician (Lab-2)
Quality control Department
22
Procedure for Testing:
The following procedures are recommended.
(1) Sterilize all glassware and rubber stoppers either in an autoclave or in boiling water. Be sure
all glassware is chemically clean.
(2) Measure 1 ml of the methylene blue thiocyanate solution into a test tube.
(3) Add 10 ml of milk and stopper.
(4) Tubes may be placed in the water bath immediately or may be stored in the refrigerator at 0o
to 4o C for a more convenient time of incubation. When ready to perform the test, the
temperature of the samples should be brought to 35o C within 10 minutes.
(5) When temperature reaches 36o C, slowly invert tubes a few times to assure uniform
creaming. Do not shake tubes. Record this time as the beginning of the incubation period. Cover
to keep out light.
(6) Check samples for decolorization after 30 minutes of incubation. Make subsequent readings
at hourly intervals thereafter.
(7) After each reading, remove decolorized tubes and then slowly make one complete inversion
of remaining tubes.
(8) Record reduction time in whole hours between last inversion and decolorization.
It is to be noted that, if blue color is changed within 3 hours then, the quality of milk is
considered as low and therefore milk will undergo pasteurization process once again. Suppose if
blue color solution is changed into white color after 3 hours then, the milk is considered as good
quality.
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Classification:
The suggested classification is listed.
Class 1 Excellent, if not decolorized within 8 hours.
Class 2 good, if decolorized in less than 8 hours but not less than 6 hours.
Class 3- Fair, if decolorized in less than 6 hours but not less than 2 hours.
Class 4- Poor, if decolorized in less than 2 hours.
The following reports are maintained in this department;
� Monthly by products report
� Fortnight report
� Attendance report
� Mil parlous report
� Agent order advance report
� Monthly purchase report
� Monthly sales report
� Yearly sales report
� Yearly purchase
24
STORE DEPARTMENT
It is headed by the General Manager and controlled by an Executive Officer and store
keeper. The receipt of materials received is maintained and the poly film, skimmed milk powder,
sugar and spare parts are stored in this department for future use.
In the store department the equipments are purchased from the companies or from the
sellers and a register is maintained for this purpose.
REPORTS MAINTAINED:
• Item purchase statement
• Current stock
• Store register
• Receipt of material register
25
4-ADMINISTRATION DEPARTMENT
(HR DEPARTMENT)
The administration department is headed by the General Manager of this union and is
controlled by, Manager Admin. And he is assisted by an executive officer, junior executive typist
and SFA.
Manager admin-1
Senior factory
assistance-1
Junior executive typist-1
Executive officer-1
26
FUNCTION OF ADMINISTRATION DEPARTMENT
� Maintaining records regarding employees and filling of vacant post as per the
employment exchange rules and stipulation.
� Maintaining the postal and dispatch service properly.
� Scheduling the seniority of employees working in the union and submitting the day today
affairs of the documents without delay.
� Taking all necessary steps to conduct administrative association meetings periodically
and planning accordingly.
� Taking all the steps to provide family benefit fund for those employees who have passed
away during their employment period.
� Determination of wages, bonus, gratuity, employees provident fund, promotions and
demotion etc will be processed and decided in this department.
� Providing timely payment of all taxes including professional tax, municipal tax, industrial
tax, and miscellaneous taxes to government.
� Recording absent/leave of employees in the document provided for that particular
purpose.
� Considering and providing all necessary documents for final audit.
� The above are the major function of this department that I have observed in this union.
NOW LET US HAVE DETAILED STUDY OF EACH FUNCTION
WORKING HOURS
The General Manager and office staff has no shift. Office time starts from 9.30 to 5.30
pm. The plant operation has 3 shifts. The duration period of one shift is 18 hours.
I shift-6 am to 2 pm
II shift-2 pm to 10 pm
III shift-10 pm to 6 am
27
The package disposal section workers have 3 shifts. The duration period of one shift is 8
hours.
I shift-6 am to 2 pm
II shift-2 pm to 10 pm
III shift-10 pm to 6 am
RECRUITMENT AND SELECTION
The recruitment and selection is done through the District employment exchange.
The administrative staff must have completed the degree with Diploma in Co-operative
Training(DCT).The recruitment and selection process are conducted by personal committee such
as Special Officer, General Manager, Deputy Registrar dairy and National dairy development
board officer.
REMUNERATION & EMOLUMENTS EMPLOYEES BENEFITS
The employees getting pay and allowances as per the government norms. They
are getting the following benefits.
� Bonus
� Gratuity
� Family Benefit Fund
� EPF
� ESI
� Double wages
� Night allowance
� Leave facilities
28
BONUS
Those who are getting the scale of pay of Rs.5500 and less are eligible for
bonus(C & D) group of employees.
Last year the employees received the bonus amount of Rs.8400 as the maximum
(i.e.) Rs.3500×12=42000×20%=8400 per year.
GRATUITY
Gratuity is payable to an employee (nominee - in case of death of employee) who has
rendered continuous service of five years or more on his termination of employment,
superannuation, retirement or resignation.
Completion of continuous service of five years is not necessary where the termination of
employment is due to death of disablement.
Gratuity will be calculated using the formula
Last pay drawn×15/26×total service
Pay=Basic Pay+GP+PP+DA
Where,
PP-Personal Pay
GP-Grade Pay
DA-Dearness Allowance
Dismissed employees are not eligible to get gratuity.
FAMILY BENEFIT FUND
While Employees die in service their legal hairs are entitled to get family benefit funds
and legal heir may have a chance of getting a job in that organization. At present 1.5 lakhs from
the LIC of India through Kanyakumari District central co-operative bank.
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EPF (Employee Provident Fund)
12% of employee’s contribution deduced from the employee’s salary. Maximum Rs.780/-
(i.e.) wages of Rs.65000×12%-12% of contribution will be paid by the employee and it will
credited 3,67% in their provident Fund Account and 8.33% will be credit in the pension fund
account.
How the Employees' Provident Fund Scheme works:
As per amendment-dated 22.9.1997 in the Act, both the employees and employer contribute to
the fund at the rate of 12% of the basic wages, dearness allowance and retaining allowance, if
any, payable to employees per month. The rate of contribution is 10% in the case of following
establishments:
• Any covered establishment with less then 20 employees, for establishments cover prior to
22.9.97.
• Any sick industrial company as defined in clause (O) of Sub-Section (1) of Section 3 of
the Sick Industrial Companies (Special Provisions) Act, 1985 and which has been
declared as such by the Board for Industrial and Financial Reconstruction,
• Any establishment which has at the end of any financial year accumulated losses equal to
or exceeding its entire net worth and
• Any establishment engaged in manufacturing of (a) jute (b) Breed (d) coir and (e)
Guar gum Industries/ Factories. The contribution under the Employees' Provident Fund
Scheme by the employee and employer will be as under with effect from 22.9.1997.
EMPLOYEES STATE INSURANCE SCHEME[ESI]
This scheme is extend to the employees those who are getting a salary less than 10,000
Rs. For this purpose 1.75% will be deduced form the employee’s salary as an employee
contribution and 4.75% will be paid by the employer as employer contribution. From this scheme
the employees entitled to avail the medical benefit. Such as treatment, leave salary and some
other medical benefits. The employees those who are getting more than Rs.10,000 are eligible to
receive only Rs.125 as medical allowance.
30
DOUBLE WAGES
The employees those who are working on national and festival holidays are eligible to get
double wages.
PERQUISTIES
The employees those who are working in plant and marketing transport are eligible to get
two sets of uniforms and one pair of chapels per annum. They also given stitching charges(per
year) monthly one soup and towel(three months) for above said employees.
FESTIVAL GIFT
During the period of Pongal the employees receive Rs.1000,1/2 kg Ghee,1/2 milk peda
and 1 liters tetra milk as a pongal gift.
During Diwali season every employee get 1kg ghee and 1 kg milk peda.
NIGHT ALLOWANCE
Those employees who work in night shift are eligible to get Rs.10
TRAVELL ALLOWANCE
Those employees who travel for official works above 8 kilometer for the union are
eligible to get travelling allowance.
LEAVE FACILITIES
Employees can avail 12 days CL (Casual Leave),32 days as EL(Earned Leave), and 12
days as medical leave for one year.
HOLIDAYS FACILITIES
For administrative staff only 5 days per week are working days and for the plant workers
6 days working days.
Administrative staff gets two holidays per week and one day weekly off allocated for
plant workers.
31
QUALIFICATION
� For Administrative staff a degree with Co-operative training.
� Mazdors should pass in 8th
Standard.
� Plant workers must have technical qualification.
JOB SATISFICATION
As far as the job satisfaction is concerned, all the employees are satisfied with the pay
structures & working conditions. The employees and employers relationship is good. There was
no strike or lockout for the past fifty one years.
DISCIPLINARY ACTION
Any workers/employees are continuously disobedient and against the rules of the
organization are punished in the following ways.
• Warning
• With holding increments
• Recovery of loss for and damage caused to the company’s properties and assets.
• Dismissal as last resort.
GRIEVANCE HANDLING
There is no separate grievance cell available. The general manager alone will handle the
redress of all function. Grievance will be presented to the General Manager directly by the
affected person.
32
5- FINANCE & ACCOUNTING DEPARTMENT
It is headed by the General Manager and controlled by deputy manager of Accounting and
Finance. They are assisted by an executive officer and junior executives.
FUNCTIONS
The accounting department functions are the transactions related to purchase and sales
are recorded in the accounts book. The accounts are prepared under the finance department only.
Cash is received in the evening and the amount is banked in the next day morning. All the
payments are mostly paid by cheques.
� The accounts department is doing various functions regarding finance and it books all the
expenses regarding purchase and expenditure
� The department also maintains proper record for profit and loss of the year
� It gives all the documents for final audit
Executive officer-1
Junior executives-5
Deputy Manager finance-1
General Manager
33
WORKING CAPITAL MANAGEMENT
Working capital management is concerned with the problem of that arise in attempting to
manage the current assets and current liabilities relationship that exists between them. The term
current assets refers to those assets, which in the ordinary course of business can be or will be
converted into cash within one year without undergoing a diminution in value and without
disruption of operation. The goal of working capital management is to manage the firm’s current
assets and liabilities in such a way a satisfactory that level of working capital is maintained. The
company avail the working capital from the nationalized Bank in the form of over draft account
TYPES OF SOFTWARE FOR ACCOUNTING PROCEDURE
The software which is used for the purpose of accounts are Tally , MS office,& MS excel
software of 7.1 version which covers all recent updates, accounting standards and also tally
software of 7.1 version covers VAT concept which marks very easy for company to fill the tax
according rules and regulation.
FINANCIAL STATUS
YEAR PROFIT LOSS ACCUMALATED LOSS
2004-05 169567.92 0
2005-06 0.00 217938.06
2006-07 0.00 5256557.12 5474495.18
2007-08 182688.84 0 5291806.34
2008-09 2708304.95 0 2583501.39
2009-10 8951169.26 0
2010-11 4927951.05 0
34
MARKETING DEPARTMENT
Marketing department is headed by the General Manager and is under the control of deputy
marketing manager. Under the control of marketing manager 38 members are working in the
union. 106 agents also involved in the marketing.
Marketing play an important role in selling the milk and milk products. It is a live blood of any
product’s sales promotion and it also helps to increase the sales of the product. Milk is marketed
in polythene covers such as 500ml and 250 ml.
This union has been marketing its self produced product as well as it buys some product from
other union and sell under the common brand name of Aavin.
Here is the list of self produced product namely
� Milk Peda(Milk Kova)
� Butter Milk
� Flavored Milk
� Badam Powder Mix
There are some product bought from other union and sold here such as,
� Ghee &Butter
Marketing department
Executive officer-1
SFA-24
General Manager
35
The Aavin kumari is also having some retail out lets for direct sales
Sl no Parlors
1 Aavin Parlor near Anna bus stand Nagercoil
2 Aavin Parlor near Ullavar chanthi,Vadaseri bus stand
3 Aavin Parlor near SCTC bus stand Nagercoil
4 Aavin Parlor inside the collector office campus,Nagercoil
5 Aavin Parlor at Nagercoil railway station,Nagercoil
6 Aavin milk parlor at Kanyakumari railway station,Kanyakumari
7 Aavin Parlor nearby Kanyakumari co-operative milk producers union
The average sales per day is13000 liter and these sales are achieved through various medium
such as 120 agents’ sales and 38 government and non governmental institutions.
36
Under tsunami rehabilitation scheme, there were 7 (seven) parlor had been set
upped by the government in full subsidy which are now functioning by self
help groups namely:
The above parlors are being functioned by these self help groups and Aavin KUMARI is
supplying dairy products to these parlors.
Place of milk parlors Functioned by
Kanyakumri Suriya Gandhi self help group
Medalam Malar udhaya marthandom self help group
Reethapuram Malar erisanaapalli self help group
Thoothur Malar China Durai self help group
Kulachel Salom good vision self help group
Karugkal Pullathuvillai good vision self help group
Etham mozhi Sakthi aangal self help group
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Pricing of various products marketed by Aavin kumari
Product Kg/ml/bottle/liter Price
Butter 500 gram 100 rupees
Badam mix powder 200 gram 55 rupees
Milk peda 1kg 180 rupees
Butter milk 200ml 5 rupees
Flavored milk 200ml in bottle 14 rupees
Flavored milk 200m;l in pocket 12 rupees
Double toned milk 1liter for agent 21.40 rupees
Double toned milk 1 liter for card holder 18.50 rupees
Cow milk 1 liter for agent 25.40 rupees
38
ADVERTISEMENT
Since Aavin has good brand name among general public. It doesn’t spend any money for
promotional strategies such as advertisement, publicity etc.,
CHANNELS OF DISTRIBUTION
AAVIN milk is being sold to the public through 8 channels. The following are the modes
of sales.
� Cash sales
� Special order sales
� Credit sales
� Milk parlor sales
� Card sales
� Vendors
� Agent sales
� Societies sales
SPECIAL ORDER SALES
The special order sales are given to the customers who require large amount of milk
provided if they order in advance. The milk rate is for double toned milk Rs. 22 and for cow milk
Rs. 26 in that case.
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CREDIT SALES
AAVIN Kumari has been supplying the milk in credit to many schools, hostels, college
canteens, hospitals, etc. presently it is supplying double toned milk alone for RS. 22 per liter
MILK PARLOURS
AAVIN Kumari has 7 milk parlors, 7 tsunami milk parlors, and also 7 agent parlors
through which they sell the milk packets. The rate per liter is for double toned milk Rs22 and for
cow milk Rs 26
CARD SALES
Milk cards are issued for those who pay the amount in advance. The card will be issued
from 1st to 14
th and all holidays of every month. The validity of the card is form 16
th to next
month 15th
. The rate per liter is 18.50 for card sales. Both morning and evening milk is supplied.
AGENT SALES
For the agent sales, the agent has to pay the amount previously for needed milk packets.
The agent will purchase the double tone milk for RS 21.40 The agents will be given a
commission of 0.60 paisa per liter.
SOCIEITIES
Two societies are involved in selling the milk products. Societies purchased the milk
form the union and selling to general public at MRP rate.
The above are the various distribution channels of kanyakumari dist co-operative union
ltd.,
40
SWOT ANALYSIS
While conducting strategic planning for any of the company it is useful to complete an analysis
that takes into account not only your own business but also your competitors business and the
current business well. The following description will highlight the strength, weakness,
opportunity and threats of kanniya kumari milk producers union Ltd
STRENGTH
� High popularity of trade name i.e.,-Aavin
� Highly reputation for quality
� Non-adulteration
� Highly skilled employees
� Huge demand for Aavin product
� Variety of products
� Financial incentives and subsidies from government
� Highly dedicated employees
� Own retailing out lets
WEAKNESS
� Lack of man power
� Lack of awareness among milk pouring members
� Increasing number of dormant societies
� Improper staffing in member societies
� Lack of sales promotional activities
� Lack of well equipped machineries
41
OPPORTUNITIES
� Huge demand for dairy products
� Product diversification
� Attracting foreign customers
� Availability of skilled workers and policy support
� Huge export opportunities and government support
� Having great opportunity to become a number one leading company in the Tamil
nadu cooperative milk producers union
� Availability well connected road network
� There is good scope for company to grow in the present market because of the
benefits such as subsidies given by the government
THREATS
� Continuous reduction of milk to union from pouring members
� New player in market with high advertisement
� Political interference
� Increasing level of adulteration tendency among milk pouring members
� Increasing number of dormant societies
� Uncertainty of regional government
� Inordinate delay in sanctioning government funds and subsidies
42
STRENGTH
� High popularity of trade name
i.e.,-Aavin
� Highly reputation for quality
� Non-adulteration
� Highly skilled employees
� Huge demand for Aavin product
� Variety of products
� Financial incentives and subsidies
from government
� Highly dedicated employees
� Own retailing out lets
WEAKNESS
� Lack of man power
� Lack of awareness among milk
pouring members
� Increasing number of dormant
societies
� Improper staffing in member
societies
� Lack of sales promotional
activities
� Lack of well equipped
machineries
OPPORTUNITIES
� Huge demand for dairy products
� Product diversification
� Attracting foreign customers
� Availability of skilled workers and
policy support
� Huge export opportunities and
government support
� Having great opportunity to
become a number one leading
company in the Tamil nadu
cooperative milk producers union
THREATS
� Continuous reduction of milk to
union from pouring members
� New player in market with high
advertisement
� Political interference
� Increasing level of adulteration
tendency among milk pouring
members
� Increasing number of dormant
societies
SWOT MATRIX
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FINDING AND SUGGESTION
POSITIVE FINDINGS
� All the employees working in Kanyakumari District co-operative milk producer
union are satisfied with their job and salary.
� The employees are highly skilled and able to accommodate any situation
� Proper utilization raw material
NEGATIVE FINDINGS
� Many department manager’s post are found to be vacant in the union.
� Increasing number of dorments societies.
� Reduction in supply of raw milk.
� Inadequate staffing.
� Lack of sales promotion activities..
� Overburdening of work.
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SUGGESTIONS:
� It is suggested to administrative department to fill the vacancy post and take necessary
steps.
� It is suggested that the marketing department may go for proper sales promotional
activities. Such as ,
• Advertisments
• Media Advertisments
• Online advertisement
� The milk pouring members should be paid adquate price for their milk . So that the union
may retain their raw milk suppliers.
� Proper staffs may be appointed at dormant socities.
� Other incentives may be paid to the suppliers of raw milk.
� The government must create awareness among general public regarding cattle growing
and its benefits.
� Revival of dormant socities
� Build the relationship between workers and management
� Solve the employees problems frequently
� Human resource management should be properly organized
� Company should take more promotional activities in which add plays a crucial role, it can
used to boost the sales figure
� Providing the recreational facility to the workers to reduce the boredom from long
duration of work
� The company must substantiate the pricing of its product and use new technology
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CONCLUSION
Aavin kumari has been enjoying monopoly in the field of Diary by marketting sachet
milk in Kanyakumari district by adapting different technique like Door to door delivery,selling
through the milk bars etc. SWOT analysis was done to identify the strength, weakness,
opportunities and threats. It was found out that , with these strengths and opportunities they can
drive out the threats from other competitors. But however from SWOT analysis it is more
evedient that the supply of milk from pouring members considerably reducing month by month
and also new competitors pays more amount to pouring members to trap them in their hands.
Therefore it is advised that the management may take necessary steps to overcome these problem
by initiating various programs, like cost reduction advertisment awareness among pouring
members and customers.
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