INSTITUTIONAL TRAINING

REPORT IN
“AAVIN MILK DAIRY CO-OPERATIVE MILK PRODUCERS FEDERATION. Ltd.”

Submitted by
K. ARTHI
17BCS005

Under the Guidance of faculty guide

Dr. S. SENTHIL M.COM., MPHIL., PH.D
Submitted in partial fulfillment of the requirement for the award of the
degree

CAREER ORIENTED COURSE IN E-COMMERCE

[ADVANCED DIPLOMA LEVEL]

GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS

DR. GRD COLLEGE OF SCIENCE
(Autonomous affiliated to the Bharathiar University)
Accredited at the FIVE STAR level by NAAC and ISO 9001:2008 certified
Coimbatore – 641014
2019-2020
 GRD SCHOOL OF COMMERCE AND INTERNATIONAL BUSINESS
DR. G.R.DAMODARAN COLLEGE OF SCIENCE
(Autonomous affiliated to the Bharathiar University)
Accredited at the FIVE STAR level by NAAC and ISO 9001:2008 certified
Coimbatore – 641014

CERTIFICATE

This is to certify that the Internship report done at AAVIN MILK DAIRY CO-OPERATIVE MILK
PRODUCERS FEDERATION LTD has been submitted by K. ARTHI (17BCS005)
in partial fulfillment of the requirements for the award of the degree of Career
Oriented Course in E-commerce [Advanced Diploma Level].

Dr.S.SENTHIL Dr. K. K. Ramachandran

Faculty Guide Director

Submitted for the viva-voce examination held on __________________

Internal Examiner External Examiner

 DECLARATION

I, K.ARTHI (17BCS005) hereby declare that the Institutional

Training done at “AAVIN MILK DAIRY CO-OPERATIVE MILK PRODUCERS
FEDERATION. Ltd.” is submitted to Dr.G.R.DAMODARAN COLLEGE OF
SCIENCE in partial fulfilment of the requirement for the award of Advanced Diploma in
Entrepreneurship and Small Business (Career Oriented Course) is a record of original work
done by me during 2019-2020, and it has not formed the basis for the award of any

Degree/Diploma/Associateship/ fellowship or other similar title to any

candidate in any University.

PLACE: Coimbatore SIGNATURE

DATE:
 ACKNOWLEDGEMENT

I wish to express my sincere gratitude to the management of Dr.G.R.DAMODARAN

COLLEGE OF SCIENCE for giving me this wonderful opportunity to pursue my graduation B.Com
(CA) and undergo Institutional Training.

My special thanks go to the Principal of our college Dr. Mrs. T. SANTHA, for her support in
allowing me to complete my Institutional Training successfully.

I also wish to express my deep sense of gratitude to our Respected Director, Dr. K. K.
RAMACHANDRAN, M. Com., MFT., MBA M.Phil., PGDCA., Ph. D., for his unfaltering faith in
his students and providing us with new ways to excel in the field of commerce.

I would like to express my sincere thanks to Dr.S.DHANARAJ, HOD, Department of

Commerce, for his motivation and timely assistance.

I would like to place my sincere thanks to DR.S.SENTHIL MCOM.,MPHIL.,PH.D

Coordinator, B.Com (CS), Tutor and all the faculty members of B.Com (CS) of Dr.
G.R.DAMODARAN COLLEGE OF SCIENCE for their support, continuous help, and inspiration
for the completion of the Institutional Training Report.

I sincerely express my thanks to the management of AAVIN MILK DAIRY CO-OPERATIVE MILK
PRODUCER FEDERATION. Ltd. for allowing me to do Institutional Training in their esteemed
company and providing information about the company.

(K.ARTHI)
 TABLE OF CONTENTS

CONTENTS PAGE NO

1. INTRODUCTION 3

2. INDUSTRY PERFORMANCE (WORLD LEVEL) 4

2.1. Production and Consumption Around the World 4

2.2. Future outlook 4

3. INDUSTRY PERFORMANCE (INDIA LEVEL) 5

3.1. Organizational Functions of 3 Tier Setup 6

3.2. Introduction About The Industry 6

3.3. Operation Flood Era 7

4. COMPANY PROFILE 9

4.1. HR Department 10
4.2. Objectives of aavin 10

4.3. Formal Organizational Structure and its Implementation 11

4.4. Vision of Aavin 12

4.5. Mission of Aavin 12

5. PRODUCT PROFILE 13
5.1 Milk 14
5.1.1. Separator 14
5.1.2. Pasteurization 14
5.1.3. Standardization 15
5.1.4. Homogenization 15
 5.1.5. Storage 15
5.2 Butter 15
5.3 Ghee 16
5.4 Curd 17
5.5 Palpeda 18
5.6 Badam mix and milk shakes 19

5.7Organization structure 20
6. FUNTIONS OF DEPARTMENTS 21

6.1 Procurement and input 21

6.2 Engineering 22

6.3 Prepacking 23

6.4 Effluent Treatment Plant 24

6.5 Quality Control 26

6.6 Administration department 27

6.7 Finance department 28

6.7.1 Journal 29

6.7.2 Ledger 29

6.7.3 Trial Balance 29

6.7.4 Trading Statement 30

6.7.5 Profit and loss Statement 30

6.7.6 Balance sheet 31

 6.7.7 Cash flow statement 32

6.7.8 Comparative income statement 32

7. MARKETING 34

7.1 Smart card 35

7.2 Purchase 35

8. SWOT ANALYSIS 36

9. CONCLUSION 38
 CHAPTER 1

INTRODUCTION

Dairy sector has assumed much significance by generating income not only to the rural but also
to the urban and semi-urban population in the state especially to women folk by providing self-
employment opportunity. Milk and milk products provide essential nutrition to all lifestyles. It
provides livelihood to millions of small and marginal farmers in the state. Tamilnadu is an
agricultural oriented State and majority of the farmers owns cattle. Dairying provides the main
source of income next to agriculture. In a tropical country like India, agriculture may fail
sometimes, due to monsoon failure but dairying never fails and gives them regular, steady
income.

The dairy development department was established in 1958 in Tamilnadu. The administrative
and statutory control over all the milk cooperatives in the State was transferred to the dairy
development Department on 1.8.1965. The Commissioner for milk production and dairy
development was made as the functional Registrar under the Tamilnadu cooperative societies
act. With the adoption of anand pattern in the State of Tamilnadu, Tamilnadu co-operative milk
producers' federation Limited was registered in the State on 01.02.1981. The Tamilnadu dairy
development corporation Ltd., were transferred to the newly registered Tamilnadu co-operative
milk producers federation limited, popularly known as aavin.

The main functions of the Dairy Development Department include Organization of

societies, registration of societies, supervision and control of primary milk cooperatives, District
Cooperative Milk Producers Unions and Tamilnadu Cooperative Milk Producers Federation.

The Dairy Development Department exercises statutory function - like Inquiry,

Inspection, Surcharge and Super session, appointment of special officers, liquidation and
winding up of dormant Societies etc. The Commissioner for Milk Production and Dairy
Development, Deputy Milk Commissioner (Co-operation), and Circle Deputy Registrars
(Dairying) are vested with quasi-Judicial powers in respect of settlement of disputes, appeal,
revision and review under various provisions of Tamilnadu Cooperative Societies Act, 1983 &
the Tamilnadu Cooperative societies Rules, 1988 made there under.

3
 CHAPTER 2

INDUSTRY PERFORMANCE (WORLD LEVEL)

2.1. Milk production and consumption around the world

Top 5 milk producing Top 5 milk consuming
countries countries
United States Finland

India Sweden

China Netherlands

Brazil Switzerland

Germany Greece

2.2. Future Outlook

➢ It is estimated that the demand for milk and dairy products will increase in upcoming years
around the world. The industry will experience massive turnover due to increasing demand.
It is estimated to reach USD 442.32 by 2020.
➢ The prices of milk and dairy products will increase twofold by 2020. The major threat of
this industry is increasing competition. Increasing competition may bring down the profits
of the industry.

➢ New dairying techniques will be introduced in the future. It will make the people to consume
milk in the name of different products and many new products will be introduced in a
periodical time.

➢ The future of this industry upsurge more research & development centres to invent a new
product in milk.

4
 CHAPTER 3

INDUSTRY PERFORMANCE (INDIA LEVEL)

1. Andhra Pradesh dairy development co-operative federation limited (APDDCF)

2. Bihar state co-operative milk producer’s federation limited (COMPFED)

3. Gujarat co-operative milk marketing federation limited (GCMMF)

4. Haryana dairy development co-operative federation.

5. Himachal Pradesh state milk producer’s federation limited (HPSCMPF)

6. Karnataka co-operative milk producer’s federation limited (KMF)

7. Kerala state co-operative milk producer’s federation limited (KCMMF)

8. Madhya Pradesh state co-operative dairy federation limited (MPCDF)

9. Preshrink co-operative dairy federation limited (UPPCDF)

10. Punjab state co-operative dairy federation limited (MILK FED)

11. Rajasthan co-operative dairy federation limited (RCDF)

12. Tamilnadu co-operative dairy federation limited (TCMPF)

13. West Bengal co-operative milk producer’s federation limited (WBCMP)

The Coimbatore district cooperative milk producers union limited popularly known as aavin
is one of the 17 District Cooperative Milk Producers' Unions . It was established in 1976 the union
has sought financial assistance from national diary development board and they implemented
various dairy development programmes. Initially the plant was set up at R.S.Puram on small scale
to process around forty five thousand liters of milk per day. As the demand for the milk increased
higher milk production plant was required to meet the demand.

5
 The new diary complex with the cost of three corer seventy lakhs in thirty six acre land at
pachapalayam was established during 1979. There are Seven hundred and twenty nine cooperative
milk producer societies are registered under the coimbatore district cooperative milk producers
union limited. There are three hundred and ninety seven employees (sixty five employees belong to
managerial cadre) of various department is working in the Coimbatore district cooperative milk
producers union.

3.1. The organizational fuctions of a 3 tier setup:

➢ Tamilnadu milk producer’s federation at state level

➢ Coimbatore district co-operative milk producers union at district level
➢ Village co-operative societies at village level limited.

In the wake of liberalization policy, private dairies have also entered into the
performance of milk co-operatives by adopting a systematic approach and proper strategy in
milk co-operatives significant achievement has been made by milk producer’s co-operative
societies union and federation in the state of Tamilnadu. The cattle population in India is
approximately 15% of total cattle population in the world. India placing a number one
position in milk production in Tamilnadu. Tamilnadu is one of the leading states in milk
production. The milk production in Tamilnadu per day is 145.88 lakh liters.

3.2 Introduction about the industry

India is the world’s largest producer of dairy products by volume and has the world’s
largest dairy herd. The country accounts for more than 13% of world’s total milk production
and is also the world’s largest consumer of dairy products, consuming almost all of its own
milk production. India is well known as the “oyster” of the global dairy industry, with the
opportunities galore for the entrepreneurs globally. It might be dream for any nation in the
world to capitalize on the largest and fastest growing milk and milk products market. The
dairy industry in India has been witnessing rapid growth with liberalization. Dairying has been

6
 regarded as one of the activities that could contribute to alleviating the poverty and
unemployment especially in the drought‐prone and rain‐fed areas. In India, about three‐fourth
of the population live in rural areas and about 38% of them are poor. Therefore among these
people, as well as the large vegetarian segment of the country’s population, dairy products
provide a critical source of nutrition and animal protein to millions of people in India

Prior to year 2000, most international dairy companies did not notice India, as the
country was neither an active importer nor an exporter of dairy products. Although India has
imported some milk powder and butter oils as aid between 1970 and 1990, exports from
India were insignificantly small and it was not until 2000 onwards, when Indian dairy
products started having more presence in global markets. Milk production in India has
developed significantly in the past few decades from a low volume of 17 million tons in
1951 to 110 million tons in 2009. Currently, the Indian dairy market is growing at an annual
rate of 7%. Despite the increase in production, a demand supply gap has become imminent
in the dairy industry due to the changing consumption habits, dynamic demographic patterns,
and the rapid urbanization of rural India. This means that there is an urgent need for the
growth rate of the dairy sector to match the rapidly growing Indian economy.

3.3 Operation flood era:

The strategy for organized dairy development in India was actually conceived in the late

1960s, within a few years after the National Dairy Development Board (NDDB) was founded
in 1965. It rested on the Operation Flood programme, which was conceived by the NDDB and
endorsed by the government.

During the 1970s, dairy commodity surpluses were building up in Europe, and Dr
Verghese Kurien, the founding chairman of NDDB, saw in those surpluses both a threat and
an opportunity. The threat was massive exports of low-cost dairy products to India, which,
had it occurred, would have told the death-knell for India's staggering dairy industry.

The large quantities that India was already importing had eroded domestic markets to
the point where dairying was not viable. The opportunity, on the other hand, was built into the

7
Operation Flood strategy. Operation Flood is a programme designed to develop dairying by
replicating the Anand Model for dairy development, which has stood the test of time for
almost half a century. The first phase of Operation Flood was launched in 1970 following an
agreement with the World Food Programme, which undertook to provide as aid 126000 tones
of skim milk powder and 42000 tones of butter oil to finance the programme.

The programme involved organizing dairy cooperatives at the village level; creating
the physical and institutional infrastructure for milk procurement, processing, marketing and
production enhancement services at the union level; and establishing dairies in India's major
metropolitan centres. The main thrust was to set up dairy cooperatives in India's best
milksheds,

linking them with the four main cities of Bombay, Calcutta, Delhi and Madras, in
which a commanding share of the milk market was to be captured. In achieving that goal, the
first phase of Operation Flood laid the foundation for India's modern dairy industry, an
industry that would ultimately meet the country's need for milk and milk products.

The second phase of the programme was implemented between 1981 and 1985.
Designed to build on the foundation laid in the first phase, it integrated the Indian Dairy
Association-assisted dairy development projects being implemented in some Indian states
into the overall programme. About US$150 million was provided by the World Bank, with
the balance of project financing obtained in the form of commodity assistance from the
EEC.

The current, third phase of Operation Flood aims at ensuring that the cooperative
institutions become self-sustaining. With an investment of US$360 million from the World
Bank, commodity and cash assistance from the EEC and NDDB's own internal resources, the
programme envisages substantial expansion of the dairy processing and marketing facilities;
an extended milk procurement infrastructure; increased outreach of production enhancement
activities; and professionalization of management in the dairy institutions.

8
 CHAPTER 4

COMPANY PROFILE

Company Name : The Aavin Coimbatore district co-operative

Milk Producer’s union limited

Company Logo :

Address : Pachapalayam, Kalampalayam (Post),

Coimbatore – 641010

Telephone. No : 0422-2607951, 61 & 71, 2208014

Email.ID : aavincbe@gmail.com

Type of Business : Co-operative

Head quarters : Tamil Nadu

Owner : Government of Tamil Nadu

Parent : Department of Animal Husbandry,

9
 Dairying and Fisheries (Tamil
Nadu) Line of business : Manufacturing and distribution
of Milk and milk products

Sector : Large-scale industrial unit

Company General Manager : Dr. S. Selvaraj, B.V. Sc.,

The Coimbatore district cooperative milk producers union limited popularly known as
aavin was established in the year 1976. Initially the plant was set up at R.S.Puram on small
scale to process around forty five thousand liters of milk per day and Later it became the
marketing head of coimbatore and the whole company was shifted to pachapalayam on 1979 as
the demand for the milk and the milk products increased.

4.1. HR DEPARTMENT:

There are around three hundred and seventy six employees working at the union. The
total number of societies are six hundred and fifty five and 11

2597 members in it.

4.2. OBJECTIVES OF AAVIN:

The organization has the following objectives:

• To development efficient work producers and process in orders to increase the milk union
employees.
• To provide a satisfactory physical and mental environment for the organization employees.
• To develop a satisfactory lines of communication between the management and the employees
in the union.
• To schedule work properly so that the jobs are completed on time and to organize duties and
responsibilities of employees within the dairy.

Assure a remuneration price for the milk produced by the member of the
milk producers co-operative society through a stable, steady and well organized market support.
10
 Distribution of quality milk and milk product to the consumers of reasonable price milk product
and supply of quality milk to the consumers has been made by was establishing new chilling
centers pasteurization plants and adoption of modern processing system.

4.3. FORMAL ORGANIZATIONAL STRUCTURE AND ITS

IMPLEMENTATION

The number of factors differentiates small business operations from large ones. Formal
organizational structure is one of them. It is especially important for a growing company
like AAVIN. Some of the notable points of AAVIN’s organizational structure are as
follows:

➢ FUNCTION
The organizational structure in AAVIN provides a hierarchy for handling problems, making
decisions and taking actions.

➢ DECISION MAKING
Organizational structure in AAVIN also enhances decision making. It often structures its
organization to make the best decisions possible. For instance, in AAVIN, dairy may
decentralize its marketing to take quicker decisions locally. Consequently, the company
may put marketing managers in one of four different regions. It is much easier for
regional marketing managers to make local decisions about consumer needs than a
marketing manager sitting in a distant corporate office.

11
➢ SPAN OF CONTROL
Organizational structure in AAVIN is also used for span of control. For instance, a vice president
of marketing may be in charge of four directors, for marketing research, brand
management, advertising and public relations. The directors may have three separate
groups of managers reporting to them. Span of control pertains to the number of
employees an executive or manager overseas. This reporting structure is how AAVIN
establishes its accountability.

➢ HARNESING EXPERIENCE
Another role of organizational structure at AAVIN in harnessing
experience. AAVIN arranges its organizational structure by specific functions,
such as marketing, accounting, finance, and engineering. The purpose of
grouping departments by function is to use the experience of groups to
accomplish tasks and projects. A certain synergism exists when skilled
employees of similar talents work together as a whole.

4.4. VISION OF AAVIN

➢ Aavin provides technical support to its co-operative societies and procuring

good quality of milk from DCS provider better price for milk producers’
(farmers) and provide good quality of milk and its products to satisfy its
customers in order to maintain and improve the economic status of the
organization.
➢ To manufacture and supply quality milk products to its customers.

➢ To retain the first position in the supply of milk and milk products.

4.5. MISSION OF AAVIN

➢ High level of customers satisfaction through better quality products and timely
delivery.

12
 ➢ Production and greater production for company’s growth and national
prosperity.

➢ To keep the environment green through plastic recycle process.

➢ Retain a good relationship with their customers.

➢ Respect and concern for individuals.

➢ Team work and mutual trust.

CHAPTER 5
PRODUCT PROFILE

The various products produced at union are as follows.

➢ Milk
➢ Butter
➢ Ghee
➢ Curd
➢ palpeda
➢ Badam mix
➢ Flavored milk

PRODUCTS SPECIFICATIONS
Toned Milk, Standardized milk and Full cream 250ml, 500ml and 1000 ml
milk
Ghee varieties 200ml, 500ml, 1000ml, 5000ml and 15kg

Flavoured Milk Tetra Pak & bottles 200ml

13
Ice-creams cups 50gms/100gms/500gms/1lit / 1 gallon

Sticks and Cones

Butter 200grams, 500grams, 20 kg

Palpeda 25grams, 50grams, 100grams

Curd 200 ml sachet & 200 GMS cups

Badam mix 200grams

The process for each product are given below.

5.1 MILK
Three types of milks are produced here based on fat and SNF.

TYPE FAT SNF

TONED 3% 8.5%
STANDARD 4.5% 8.5%
FULL CREAM 6% 9%

5.15.1.1 SEPARATOR

A separator is a centrifugal device that separates milk into cream and

skimmed milk. Separation was commonly performed on farms in the past. The skimmed
milk and cream milk was separated. Enough cream was saved to make butter, ghee,
cheese. The milk is separated in industrial dairies. Sufficient cream is returned to the
skimmed milk before sale.

5.1.2 PASTEURIZATION

Pasteurization is a heat treatment process that extends the usable life of milk
and reduces the numbers of possible pathogenic microorganisms to levels at which they
do not represent a significant health hazard. The every particle of milk is heated at

14
 seventy two degree Celsius (72° c) for fifteen (15) minutes or at sixty three degree
Celsius (63°c) for thirty (30) minutes which is efficient in approved and properly
operated equipment.

5.1.3. STANDARDIZATION

Standardization of milk is done with the help of standardization machine. There

are three types of milk with different fat and SNF so according to that the adjustment is
made. If the fat is less cream is added to it. If SNF is less skim milk, powder is added.
This alteration of milk fat or SNF is called standardization. Thus, it is a process by wish
the fat content in milk is brought to a uniform standard.

5.1.4. HOMOGENIZATION

The milk is homogenized to prevent the fat globules from floating to the top
which form a creamy layer. Homogenization is achieved by a mechanical device called a
homogenizer. Homogenizers are heavy duty high pressure pumps equipped with a special
valve at the discharge end. They are designed to break up the fat globules in milk from normal
size to almost two (2) microns. The hot milk is pumped through the valve under high pressure
resulting in uniform and stable distribution of fat in the milk .

5.1.5. STORAGE

The processed milk is then sent to packing section and the milk is packed in
250ml, 500ml and 1000ml. After packing, the milk is then kept in a storage room until
dispatch.

5.2. BUTTER
Butter is product obtained from cow or buffalo or combination thereof or cream or curd obtained
from cow or buffalo milk or combination thereof with or without the addition of common salt or carotene
as colouring matter. The following is the production process of butter.

15
1.SELECTION OF MILK: Select the milk which contains fat and its quality must be checked by the
quality analysis techniques
2.CREAM SEPARATOR: After selection of milk it is then passed through cream separator, which
separates cream and skimmed milk. The cream contains fat and skimmed milk has nil lat.
3.CREAM PROCESSING: The selected cream is then pumped into Butter churnner and the cream is
processed,
4.ADD CHILL WATER AND CHURN: After pumping into Butter chunner, chilled water is added to
churn.
5.DRAINING OF WHEY: After churning Butter is separated from whey by draining. This helps in
adjustments of moisture. Resultant after draining whey forms to be butter. 6.PACKING AND
STORAGE: Butter, thus formed can be used as table butter by adding salt or can be used as pasteurized
butter. It can be stored or can be melted to ghee.

5.3 GHEE
Ghee is a clarified fat delivered from whole milk where no colouring and preservatives
are added. The process of ghee are as follows
1. BUTTER CHURNED: The butter must be churned from the butter churner and kept ready for
making ghee.
2. PRE-MELTING TANK: The butter is then placed on the pre melting tank where the butter
melts to form ghee.
3. FILLING INTO KETTLE: The melted butter is then transferred to ghee kettles where further
transformation of ghee takes place and is boiled at certain temperature for half an hour.
4. SETTLING: The ghee is left for settling for some time and then transferred to other tank for
filtrations then it is packed on various containers.

16
5.4 CURD

Curd is a coagulated milk product which is processed by adding culture.

1 SELECTION OF MILK

The milk used for making curd is homogenized and if heated at high temperature

2 ADDING CULTURE

Culture is incubated at 80 degree Celsius for 30 minutes. Culture incubated is added to the
homogenized milk is coagulated and is allowed to cool and pack. Kefir grain, micro
organisms affecting milk and lactic acid acts upon it during the process

3 INCUBATION

The packed curd is incubated at 40 degree Celsius for few hours for further completion of
coagulation and storage and is stored at 4 degree Celsius.

17
5.5 PALPEDA
Palpeda is a semi solid obtained from milk by evaporating milk in an open pan. It is used for
preparation of gulab jamoon, carrot halwa, coconut burfi etc., the process of making palpeda is
given below

1) A large pan is taken and pre heaten

2) Milk is heated at 90 degree Celsius

3) A few amount of sugar is added to it

4) It is stirred for about one and half an hour

5) It is allowed to dry for 3 hours

6) It is cut into small pieces and packed

18
5.6 BADAM MIX AND MILK SHAKES
Also Aavin company provides delicious and tasty badham milk and shakes.

19
5.7 ORGANIZATION STRUCTURE

20
 GENERAL MANAGER

ASSISTANT GENERAL MANAGER

DEPARTEMENT OF GENERAL
MANAGER

MANAGER(DGM)

EMPLOYEE REGULAR EMPLOYEE

UNION DAILY WAGES EMPLOYEE
UNION

CHAPTER 6

FUNTIONS OF DEPARTMENTS

The following are the various departments of the company

1. Procurement and Input

2. Engineering
21
 • Dairy

• Engg

• BMC

• Civil

• Transport

• Stores

3. Quality control

4. Administration

5. Accounts

6. Marketing

7. Purchase

6.1 PROCUREMENT AND INPUT

The milk is collected from the farmers at chilling centers which is brought to the union by
tankers. About 3,00,000 liters milk is obtained from CCs and BMCs. Around 1.7 lakhs liters milk
is sold to the consumers, 20,000 liters milk is used for making byproducts and 75,000 – 1,00,000
liters milk is given to kerala union and the rest is converted to skim milk powders. There are 582
societies and 500-600 sub societies are in and around Coimbatore. A minimum of 50 members are
required for forming a society. The payment for the milk will be made to the societies in 10 days.

There are 7 team office managed by team managers and extension officers. They will visit each
society to see if the work is done properly. They will identify various problems faced by the societies
and will make solutions. The union also provides free cattle feed. The cattle feed is grown in the
union itself and is also purchased from other unions. Subsidy is given to the local farmers who give

22
milk to the union. There are 15 veterinary doctors who will visit the cows two times in a week and
the consultation fee is only rs.50, which is very less, and a great advantage for the farmers.

6.2. ENGINEERING
There are 5 departments under engineering section i.e., Dairy, Engg, BMC, Civil, Transport and
stores

❖ DAIRY

Dairy department is concerned with processing of various products such as milk, butter, ghee,
palpeda and flavored milk. It is their duty to check the availability of raw materials for the
production so that the process takes place throughout 365 days without any hindrance. Dairy
department places a major role as any small error would result in serious problem.

❖ ENGG

Engineering department is concerned with operation and maintenance of the various machineries
and equipments used in production of milk, butter, ghee, curd, palpeda and flavored milk.
The various machineries used in the production are as follows.

BOILER

1 REFRIGERATOR

2 PRE PACK
3 ETP

1.BOILER

The machine produces steam which is used to carry out process of milk, melting
butter, palpeda and also for cleaning the machines. The capacity of the boiler is 4.5 ton. The
fuel used in the plant is furnace oil. A control panel controls the plant. An alarm sound from
the panel indicates the water and fuel level is decreased. The wastes formed or settled down
are sent out by blow down. Water is boiled at 110 degree Celsius in order to produce steam.
The steam is sent to other sections through pipelines.
23
 2.REFRIGERATOR

A chiller is a machine that removes heat from a liquid via a vaporcompression or

absorption refrigeration cycle. a machine for cooling something, especially a cold cabinet or
refrigerator for keeping stored food a few degrees above freezing point. This liquid can then
be circulated through a heat exchanger to cool air or equipment as required. As a necessary
by product, refrigeration creates waste heat that must be exhausted to ambient or, for greater
efficiency, recovered for heating purposes. Concerns in design and selection of chillers
include performance, efficiency, maintenance, and product life cycle environmental impact.

6.3. PRE PACKING

The machines used here are automated. The capacity of the milk tank is
15,000 liters. There are about 4 machines which packs 250ml, 500ml and 100ml. The
machines can pack 85 packets in one minute but for the convenience of the workers it is
reduced to 60 packets per min. There are three types of milk toned milk, standard milk and
full cream milk so according to that three colors of packets blue, green and orange are
packed. About 3,40,000 to 3,50,000 packets are packed in a day.

6.4. EFFLUENT TREATMENT PLANT

ETP process is the last function in AAVIN Milk Company, this is a process by
which the waste water from various departments are recycled. This ensures clean environment
and it promotes CSR activity

• The first step is that the water is collected from various departments which may contains milk
and its milk products put in a tank called collection tank.
• The cow dung will be adding and then it will poured in to another tank in this tank fat will be
remove this process is called fat removal unit.

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 • Then its send to sump collection tank, then it will transferred in to neutralization tank
• It is sent to action tank and then it is poured in to sludge beds
• The water is then poured in to settling tank where chemicals will be added.
• The two chemicals added are LIME POWER AND ALUM POWER.
• It is sent to secondary aeration tank
• Then to holding tank then in that tank urea and ammonium phosphate will be adding in the
ratio of 5:1 and the PH value of 7
• The water will be in pink colour, and then it is poured in to unatch chamber. Finally it will
come out with cleaned water
• This water is used for fodder farm where grass and rare plant are grown which will be sold
to farmers at subsidy rates

❖ BMC
A bulk milk cooling tank is a large storage tank for cooling and holding milk at a cold
temperature until it can be picked up by a milk hauler. Rapid and efficient milk cooling is
essential for preserving milk quality. But only rapid cooling to a storage temperature of around
four degree Celsius (4°c ) to six degree Celsius (6°C) prevents or minimizes further micro-
organism growth.

❖ CIVIL DEPARTMENT

Civil department is the department which is responsible for infrastructure , construction of

areas for dairy machineries and equipment. All the works are done on tenders and quotations.
The lowest bidder gets the offer to work for the union. A work card is provided to works which
is used for giving wages to them and is also used as identity card. The work should be done
within a speculated time period if not there must be reliable reason so that extension period will
be given.

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 The estimate for the project is just like the PWD’s rate which is declared yearly once. If the
budget is high part of the amount is paid before and rest will be paid after the completion of the
project. If work is done on quotation then only final payment is made.

❖ TRANSPORT
Transport Department is responsible for collection of milk from the society and deliver it to
the union and also timely deliveries of milk and milk products to various places in and around
the Tamil Nadu. Transport Department has more responsibility because of the nature of the
milk products. Perishable nature has made transportation as are of great significance compared
to other departments.
There are 11 tankers, 2 supply vehicles and 15 officer’s vehicle. Other vehicles that are used
are mostly taken on tender, which will be conducted 2 years once. Inventories are stored in
this department. Various ingredients used in production of milk, cheese, butter, milkpeda, ice
cream, curd etc., are stored here for immediate usage in the preparation of Products. All needed
items are stored and provided for production and sales in First In First Out basis. When a
product is needed in a department the user must write an indent They also have a workshop
which is certified by TMVD and that also should be renewed 2 years once. Vehicles are also
given for repair to authorized dealers.

❖ STORES DEPARTMENT
Inventories are stored in this department. Various ingredients used in production of milk, cheese,
butter, milkpeda, ice cream, curd etc., are stored here for immediate usage in the preparation of
Products. All needed items are stored and provided for production and sales in First In First Out
basis. When a product is needed in a department the user must write an indent which should be
signed by the GM.

The indent will contain all the specification of the product for example the size, colour, shape,
weight etc., Then the indent will be sent to stores department, they will check for the availability
of the product. If the product is not available then it is sent to the purchase section. Then either
tender or quotation will be conducted for the purchase of the product.

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 The product will be purchased from the lowest bidder. Later when the goods are
received GRN(goods received note) which will be prepared by comparing the bill and the
GM’s order. The bill will be sealed by the stores section which is a certification for the product
received. Then respective section who are in need of the product will be informed about the
arrival. They will submit the indent and the product will be delivered to them and delivery
challan will be prepared. For auditing purpose ledger accounts and stock statements will be
maintained.

6.5. QUALITY CONTROL

The work of this department starts when the milk is arrived at the dairy. They conduct
various tests to check the quality of the milk.
1 Organoleptic test

This test is made to check the quality of the test which is done just by smelling and the
appearance, which we can find out, by experience.

2 COB (clot on boiling)

One ml of milk is taken in a test tube and it is heated. This is to check if the milk can
withstand the heat. If it cannot withstand the heat it will get spoiled.

3 Pasteurization

This is a process where milk is heated at a high temperature and the milk is chilled
immediately. By doing this process many pathogenic microbial organisms like Tuberculosis,
pseudomonas, coliform bacteria, etc., will be destroyed.

4 MBRT (Methylene blue dye-reduction test)

When the dye methylene blue is added to milk, the bacteria present take up oxygen and
change the colour of the dye, methylene blue loses its colour and changes from blue-purple

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 to colourless. The speed of the change indicates the bacterial content. Longer the time taken
for conversion lower bacterial content, shorter the time higher the bacterial content.

5 Phosphatase test

Milk and phosphatase buffer are added in a test tube and kept for 30mins. If the milk
remains white in colour then it does not contain phosphatase enzyme. If the milk turns to
yellow in colour then it indicates that the pasteurization process is not properly completed.

6.6. ADMINISTRATION DEPARTMENT

All the matters relating to taxation, provident fund, pension, salary, etc., are done in admin.
Department. Administration department checks the overall running of department such as P&I
department, Dairy department, Engineering department, BMC department, Civil department,
transport department, stores department, QC department, accounts department, marketing
department, purchase department, MIS department .Administration department is consisting of
assistant General manager, Manager, Deputy manager, Executives, Technicians, Supervisors and
a number of workers.

❖ HUMAN RESOURCE DEPARTMENT:

The human resource department is under the control of human resource manager. The
Human resources are heterogeneous in the sense that they differ in personality, perception,
emotions, values, attitudes, motives and modes of thoughts. Better educated, more skilled, better
aware of their interest and rights are some distinguishing features of modern human resources .The
objective of human resource department is to have right people for right job.

The following are the actions carried out by the human resource department

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 a. Procurement: Job analysis and design, human resource Planning, recruitment, selection,
placement and orientation.
b. Development: Career planning and development, worker training, executive development and
organizational development.
c. Compensation: Job evaluation, Performance evaluation, wages administration, incentives and
benefits.
d. Maintenance: social security, workers participation, motivation, job rotation, human resource
records, research and audit
e. Integration: Discipline, grievance redressed, dispute Settlement and collective bargaining.

6.7. FINANCE DEPARTMENT

The finance department is under the control of finance manager. The finance
department consist of two section they are accounts section and audit section. The finance
department employees prepare following statements as mentioned below.
• JOURNAL

• LEDGER

• TRIAL BALANCE

• TRADING STATEMENT

• PROFIT AND LOSS STATEMENT

• BALANCE SHEET

• CASH FLOW STATEMENT

• COMPARITIVE INCOME STATEMENT

6.7.1. JOURNAL

In accounting and bookkeeping, a journal is a record of financial transactions in order by date.

In manual accounting or book keeping systems, business transactions are first recorded in a
journal. A manual journal entry that is recorded in a company's general journal will consist of
the following:

• The appropriate date

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 • The amount and account that will be

• The amount and account that will be credited

• A short description or memo

• A reference such as a check number

These journalized amounts which will appear in the journal in order by date are
then posted to the accounts in the general ledger.
6.7.2. LEDGER

A general ledger contains all the accounts for recording transactions relating to
a company's assets, liabilities, owners' equity, revenue, and expenses. The general ledger should
include the date, description and balance or total amount for each account. It is usually divided
into at least seven main categories. These categories generally include assets, liabilities, owner's
equity, revenue, expenses, gains and losses. The main categories of the general ledger may be
further sub divided into sub ledgers to include additional details of such accounts as cash,
accounts receivable, accounts payable.

6.7.3. TRIAL BALANCE

A trial balance is bookkeeping or accounting report that lists the balances in each of an
organization's general ledger accounts. Accounts with zero balances will likely be omitted. The
debit balance amounts are listed in a column with the heading debit balances and the credit
balance amounts are listed in another column with the heading credit balances. The total of
each of these two columns should be identical.

In a manual system a trial balance will be commonly prepared by the bookkeeper in

order to discover whether math errors and/or some posting errors were made However, the
trial balance continues to be useful for auditors and accountants who wish to show a) The
general ledger account balances prior to their proposed adjustments b) Their proposed
adjustments c) All of the account balances after the proposed adjustments.

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 6.7.4. TRADING STATEMENT

The trading statement’s main objective is to determine sales, cost of sales and gross profit.
The trading statement forms a part of effective bookkeeping within the accounting disciple.
PRIMARY FORMULA
Gross profit = sales –gross profit

COST OF SALES

The main part of this calculation consists of opening stock, purchases, goods available for
sales, closing stock.
GROSS PROFIT
Sales – cost of sales = gross profit

6.7.5. PROFIT AND LOSS STATEMENT

Profit and loss statement is one of the financial statements of the company and
shows the company’s revenues and expenses during a particular period. It indicates how
the revenue are transformed into the net income, the result after all revenues and expenses
have been accounted for is known as net profit. This purpose of the profit and loss statement
is to show managers and investors whether the company has made profit or loss in that
financial year.

6.7.6.BALANCE SHEET

In financial accounting, a balance sheet or statement of financial position

is a summary of the financial balances of a sole proprietorship, a business partnership,
a corporation or other business organization. Assets, liabilities and ownership equity
are listed as of a specific date, such as the end of its financial year. A balance sheet
is often described as a snapshot of a company financial condition. Balance sheets are
usually presented with assets in one section and liabilities and net worth in the other
section with the two sections balancing.

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 1.ASSETS :

➢ Current assets:

1. Cash and cash equivalents

2: Accounts receivable

3.Prepaid expenses for future services that will be used within a year
➢Non-current assets (Fixed assets):
1. Property, plant and equipment

2. Investment property, such as real estate held for investment purposes

3. Intangible assets

4. Financial assets (excluding investments accounted for using the equity

method, accounts receivables, and cash and cash equivalents)
5. Investments accounted for using the equity method
6. Biological assets, which are living plants or animals. Bearer biological assets
are plants and animals.
2.LIABLITIES:

1. Accounts payable

2. Provisions for warranties or court decisions

3.Financial liabilities (excluding provisions and accounts payable),such as promissory

notes and corporate bonds

4. Liabilities and assets for current tax

5. Deferred tax liabilities and deferred tax ssets

6. Unearned revenue for services paid for by customers but not yet provided

EQUITY:
The net assets shown by the balance sheet equals the third part of the balance sheet, which is
known as the shareholders' equity.

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6.7.7. CASH FLOW STATEMENT:

In financial accounting a cash flow statement is a financial statement that shows

how changes in balance sheet accounts and income affect cash and cash equivalents,
and breaks the analysis down to operating, investing and financing activities.
Essentially, the cash flow statement is concerned with the flow of cash in and out of the
business. The statement captures both the current operating results and the
accompanying changes in the balance sheet. As an analytical tool, the statement of cash
flows is useful in determining the short term viability of a company, particularly its
ability to pay bills.

6.7.8. COMPARATIVE INCOME STATEMENT:

Trading and profit & loss account is a summary of the results of operations of a
business transacted during an accounting period. It indicates the gross profit and net
profit. But a single trading and profit and loss account does not convey anything about
the progress or increase or decrease in the earnings of the business. Therefore,
comparative income statement is prepared by taking the figures of two or more
accounting periods, to enable the analyst to have definite knowledge about the progress
of the business.

CHAPTER 7

MARKETING

Marketing department is concerned with marketing milk and other by products

such as butter, ghee, curd, palpeda etc., There are 5 union parlors, 5 wholesale agents and
around 1000 booth agents. Milk is supplied to nearly 150 institutions. The agents will get
certain percentage commission on the goods purchased by them. The areas in and around
Coimbatore are dived into four zonal – NORTH, SOUTH, EAST and WEST. Each zonal is
managed by a zonal manager.

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Their duty is to visit each booths under their zonal and to create daily reports, check whether
the milk is supplied properly without any interruptions, bills and cheques has to be collected
from various institutions. If there are any issues and complaints, it will be solved by them.
The agents have to pay the money before day for the purchase of the product the next day.
If any agent is interested in selling ice creams then they have to pay a deposit amount of
Rs.3000 so that the union will provide a freezer.

The products and the sales rate are given below

PRODUCTS SALES PER MONTH

Milk 45,00,000 liters

Ghee 8 – 10 tons
Palpeda 2500 kg
Badam mix 1 ton
Flavored milk 2000 bottles
Milkshakes 45900 tetra packs

There are 5 coffee bars AT

1 Gandipuram

2 VOC park

3 Ukkadam

4 RS puram (branch)

5 RS puram

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Highest sale is done at RS puram (branch) coffee bar and the least sold is at ukkadam coffee
bar. Some by products are not manufactured at coimbatore so those products will be purchased
from other unions. The various products are flavored milk, SMP, mysurpak, gulab jamoon,
milkshakes and ice creams. Mysurpak and gulab jamoons will be produced only on certain
occasion like Diwali and Pongal.

7.1. SMART CARD

On the year 2010 this system was introduced first at coimbatore. This is
very easy and convenient for the customers and also for the union. Before introducing this
they provided a milk card which was hand written. But there were many practical issues and
also many malpractices were happening. After introducing smart cards it has been reduced
and also many new customers have been purchasing milk using smart card.

The procedure for this is very simple a form will be provided to the customer they have to
fill the details like the zone they belong to, booth number and their personal details. After
submitting it to the marketing office they will receive a smart card which will be just like an
ATM card.
Every month the customer has to come and pay the money for the milk they purchase the
next month. Usually the agents will sell products for a higher price than the MRP but if they
use the smart card this cannot happen.

The customers have to give their smart card and tell which milk they are in need of
and pay the money for that milk. This process will happen till 27th of every month after that
all these data will be processed and a statement will be prepared, one will be with the
marketing office the other one will be given to all the booths so that when the customers
show the card the agents can check the card number And give the respective product. There
are 23,000 customers using smart cards in Coimbatore.

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7.2. PURCHASE

The purchase department will be held responsible for various products will be needed
for the production of products. The products will be purchased either on quotations or on
tenders which will be held 2 years once. An indent will be prepared by the user of the
product which will be given to stores to check for availability if it is not available then
they will conduct a tender and they will purchase form the lowest bidder. There is a
committee for tender which will recommend the company from which the goods will be
purchased.

CHAPTER 8

SWOT ANALYSIS
STRENGTH

✓ Primary motive is service and not profit

✓ Goodwill enjoyed by the company

✓ Products being sold at lower price

✓ Retainment of first position in supply milk and its products

✓ Farmers are ensured with many benefits

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WEEKNESS

✓ Many times contractors tend to default from duties

✓ Since all products are perishable, it forms weakness in long run

✓ Advertisement about the products tend to be low when compared to other brands

✓ The works are still paper works and not computerized

✓ Supply of milk is seasonal and subject to fluctuation

OPPORTUNITY

✓ There is greater demand for milk and milk products at national and international
market

✓ Vast area under agriculture hence steady supply of fodder

✓ It has great opportunity because it is a cooperative society

✓ Training the employees will take it to a new level

✓ It can increase its cash outflow towards research and development as it will fetch
many positive attributes

THREATS

✓ Competition from private sector

✓ The union cannot make decisions on their own as it is controlled by government

✓ Larger demands and lesser supply

✓ Seasonal fluctuations in milk production

✓ Natural calamities like flood, drought and diseases can affect the feed to the
cattle population.

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 CHAPTER 9

CONCLUSION

✓ The main objective of this study is to learn about the working in the organization. The
study provided an opportunity to gain insight into the practical aspects of the working.
It has helped me to know how the organization works in reality and has given the
practical exposure. The study focuses on different departments like dairy, marketing,
finance, stores, purchase etc. All the departments and their effectiveness were
individually studied and their relevance is stated . In the process, the strength and
weakness of various departments in the organization were analyzed. The opportunity of
meeting people from different departments, and from the data collected a SWOT
analysis is also prepared.

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✓ From the study, it is seen that a new technology has been adopted by the dairy for
production, which is automated so that the time is reduced. The farmers who are
members of the society have many advantages, which other dairies do not provide. If
the number of employees is increased, the workload for the existing customers will be
reduced. The work done here are mostly paper works which when computerized the data
handling will be convenient and time will be saved. If more incentives and bonus is
provided to employees, it would encourage them and work stress can be reduced by
providing stress reduction campaigns and training. The smart card system introduced
especially for the customers made many new customers to buy their product.

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