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The elected board of this union was superseded and the District collector was appointed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

4

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

9

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

17

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

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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

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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

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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.

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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

37

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

45

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.