AN INTERNSHIP TRAINING OF AAVIN MILK

(With Reference to AAVIN MILK, TIRUNELVELI)

An internship training report submitted to the
MANONMANIAM SUNDARANAR
UNIVERSITY
In partial fulfillment of the requirements
For the award of the Degree of
MASTER OF COMMERCE
BY
R. ARONE FRANKLIN
(Reg. No: 311303)
Dr.B.REVATHY, M.Com. M.Phil, B.Ed., Ph.D., DCA., MBA.,
Guide & Supervisor

DEPARTMENT OF COMMERCE
SCHOOL OF BUSINESS
STUDIES

MANONMANIAM SUNDARNAR UNIVERSITY

TIRUNELVELI – 627 012
MARCH 2012

R.ARONE
FRANKLIN Reg .No.
311303
Master of Commerce
Department of
Commerce
School of Business Studies
Manonmaniam Sundaranar
University Tirunelveli – 627 012.

DECLARATION

I hereby declare that the internship training report entitled AN INTERNSHIP

TRAINING OF AAVIN MILK (With Reference to AAVIN MILK, TIRUNELVELI)

submitted to the Manonmaniam Sundaranar University in partial fulfillment for

award of the degree of Master of Commerce is the original work done by me, under

the supervision and guidance of Dr.B.REVATHY, and that it has not previously

formed the basis for the award of any Degree, Diploma, Associateship, Fellowship or

any other similar title.

Place: Tirunelveli, Candidate’s Signature

Date: R. ARONE FRANKLIN

THE TIRUNELVELI DIS TRICT CO— OPERATIVE MILK PRODUCER’S UNION LTD:
TIRUNELVELI -7.
TELEPHONE NO.0462 -2552004 FAX MO.0462— Z552569

Dr . R. SELVARAJ , I. A.S. ,
!3is?r‹c† Col leCtor / Special Off icer.

Thiru T. BALAJI, B.E. ,

/$'eneraI /\/\cnager

Ref: to. 1 484/A dmn -11/2011 Dated 14.02.201 Z .

CERTIFICATE

Th is is to cents fy that Mr. R. ARONE FRANKLIhJ, M. Com s†udent

o[ Marionmaniam Sundarcnar University, Tirunelveli hDS completed In— Plan†

Training in ii runelveli DisEric I Co operative Milk Producer‘s Union Ltd.,

Tirunelvet (aavin nellai} during †he period from 01. 1 2.20 1 1 †o 30. 1 2.201 1

General Manager
Dr.B.REVATHY, M.Com. M.Phil, B.Ed., Ph.D., DCA., MBA.,
Associate Professor,
Department of Commerce
School of Business
Studies
Manonmaniam Sundaranar
University Tirunelveli - 627 012.

CERTIFICATE

This is to certify that the internship training report entitled AN

INTERNSHIPTRAINING OF AAVIN MILK (With Reference to AAVIN MILK,
TIRUNELVELI) is a bonafide record of training underwent by the candidate,
Mr.R.ARONE FRANKLIN [Reg No.311303] in partial fulfillment of the
requirements for the award of the degree of Master of Commerce of Manonmaniam
Sundaranar University, Tirunelveli, during the academic year 2011 – 2013. The
report is original in character and has not formed the basis for award of any other
Degree, Diploma, Associateship, Fellowship or any other similar title in this or any
other university.

Place: Tirunelveli,
B.REVATHY
Date: (Guide and Supervisor)

COUNTER SIGNED
 ACKNOWLEDGEMENT

I extent my sincere thanks to Dr. C. THILAKAM, The Head, Department of

Commerce for her constant encouragement and motivation and for her words of
appreciation.

I am extremely thankful to my guide and supervisor, Dr. B. REVATHY,

Associate Professor, Department of Commerce, for her valuable guidance and kind
co-operation for the completion of the internship training report.

I wish to record, not out of formality but not of deep feeling of indebtedness,
my sense of gratitude to all the staff members Mr. A. ARUL KAMAL RAJ, Ms. M.
NITHYA, Ms. N. SANKARESWARI, and Mr. S. DANI ROMAN SINGH of our
Department of Commerce, without whose valuable suggestions and guidance at every
stage of the study, this present report would not have seen the light of day and would
like to special thanks Mr.A.ARUMUGAM for helps to complete my report

Last but not the least I thank the ALMIGHTY for his abundant grace and
blessings in all my endeavors.

R. ARONE FRANKLIN
LIST OF ABBRIVIATION
 CONTENTS

DECLARATION
CERTIFICATE
ACKNOWLEDGEMEN
T

CHAPTER TITLE PAGE NO

I INTRODUCTION 1
II PROFILE 3

III FINDINGS AND SUGGESTIONS 21

BIBLIOGRAPHY
|\iTonnNrTin\ nr ry/i\i uiif
 CHAPTER I
INTRODUCTION
Milk is nutrient rich food that provides a large number of nutrients relative to
the calories consumed Milk is delicious as a beverage and can be used as a base for
other drink such as hot chocolate.

The Milk of domesticated animals is also an important food source for humans.
Most Milk consumed in Western countries is from cows; other important sources
include sheep, goats, water buffalo, and camels. Milk is essentially an emulsion of fat
and protein in water, along with dissolved sugar, minerals (including calcium and
phosphorus), and vitamins, particularly vitamin B complex. Commercially processed
cow's Milk is commonly enriched with vitamins A and D.

Many countries require pasteurization to protect against naturally occurring

and artificially introduced microorganisms. Cooling further prevents spoilage
(souring and curdling). Fat from whole Milk (about 3.5% fat content) can be removed
in a separator to produce cream and leave low-fat Milk (1–2% fat) or skim Milk
(0.5% fat). Milk is usually homogenized, forced under high pressure through small
openings to distribute the fat evenly. It may also be condensed, evaporated, or
dehydrated for preservation and ease of transport. Other dairy products include
butter, cheese, and yogurt.

WORLD WIDE
June 1 is the world Milk day as announced by Food and Agricultural
Organization (FAO). Milk helps to children to promote the growth of their muscles,
bones, teeth, and brain.

1
 Pediatricians and nutrientionist agree that the balanced diet with a proportion
of the necessary carbohydrate, and proteins, moreover , the high content of vitamin D
in Milk is key component to Milk bone structure, bone recovery and bone health. In
addition help to maintain the health of the teeth.

Functions of Cooperative Milk Producers Union

1. Establishment of chilling centers
2. Formation of new Milk routes to collect Milk produced by the members of the
societies.
3. Collection of Milk from societies, process and pack in modern dairy.
4. Supply of quaLitery Milk.
5. Fixation of procurement and selling price of Milk.
6. Supply of inputs to the members of the societies.

Nourishment of Milk
Milk contains calories, proteins, carbohydrate, fat, saturated fat, cholesterol,
vitamin A, vitamin C, foliate, calcium, magnesium, zin C, phosphorus, iron.

2
 CHAPTER 2

PROFILE

INTRODUCTION
 The dairy development was established in 1958 in Tamilnadu. The
administrative and statuary controls over all the Milk cooperatives in the state were
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 as on 1st February 1981.

The commercial activities of the department such as Milk procurement,

chilling, processing, packing and sale of Milk to the consumer etc., hitherto dealt
with by the Tamilnadu Dairy Development Cooperation Limited, were transferred to
the newly registered Tamilnadu Co-operative Milk Producers’ Federation Limited,
popularly known as “Aavin”.

Tamilnadu Co-operative Milk Producers’ Federation Limited was constituted

on 1st February 1981. Federation is procuring, processing and marketing of Milk and
Milk products federation has implemented the dairy development activities under
operation flood programmed with a financial and technical assistance of national
dairy development board. Chennai metro is having four dairies. Milk procurement,
processing and distribution are being attended by the district unions in the respective
areas.
3
In the wake of liberalization policy, private dairies have also entered into the field of
the honorable Chief Minister of Tamilnadu High priority has been given for
improving the performance of Milk co-operatives by adoptinvg a symmetric
approach in and proper sytratergy in Milk co-operatives.
 Significant achievement has been made by Milk producers’ cooperative
societies, unions and federation in the state of Tamilnadu.
The cattle population in India is approximately 15% of total cattle population
in the world. India stood at no.1 position in Milk production. Tamilnadu is one of the
leading state in Milk production. The Milk production in Tamilnadu per day is 145.88
lakh Literers.

Objectives of the Dairy Development Department

1. Assure a remunerative price for the Milk produced by the member of the
Milk producers’ co-operative societies through a stable, steady and well
organized market support.
2. Distribution of quaLitery Milk products to the consumers at reasonable
price.

Keeping these objectives in mind, a number of activities are undertaken by the dairy
development department. Provision of free veterinary health cover to all animals
owned by the members of Milk cooperatives, implementation of artificial
insemination program, supply of balanced cattle feed and inculcation of farmers with
modern animal husbandry methods and practices.

4
All activities, which are essential for the up gradation of the mitch animals and
improving their productivity in the long run, have been undertaken.

Provision of necessary infrastructure faciLiteries for marketing Milk

products and supply of quaLitery Milk to the consumer has been made by way of
establishing new chilling centers, pasteurization plants and adoption of modern
processing system.

Center of Aavin in Tamilnadu

Tirunelveli is the main branch of Milk production for preparing dairy products.

Four small branches:

Under tirunelveli, there are four small branches which are located as follows
1. Sankarankoil
2. Vallioor
3. Shathankulam
4. Kovilpatti.
These are also called as “Chilling centers”

Collection of Milk:
Raw Milk:

The Milk is collected from many villages. The Milkers give their Milk through
dairy form situated in their villages. Therefore both societies and Milk givers can
earn
5
money through some profits. The collection of Milk which directly gets from the
Milk giver is known as the “Raw Milk”. The Milk can be collected at morning and in
the evening.
Dairy:
Processing faciLitery: The Milk received at the chilling centers are brought to
the dairy and along with the Milk received at the dairy, Milk is processed for keeping
the quaLitery. Types of Milk such as standardized Milk, high fat, high protein Milk,
are being prepared to the requirements of the consumers; the surplus fat is converted
into ghee.

The whole Milk surplus is dispatched to metro dairies and feeder balancing
dairies viz Madurai, Erode, and Trivandrum. The high fat and high protein Milk are
packed in 250ml and 500ml sachets. In the dairy Milk ghee, ice-cream flavoured
Milk, rose Milk, butter Milk etc are being manufacturing and marketed. The
processing capacity of main dairy, kovilpatti Chilling Center, valliyure Chilling
Center, sakarankoil Chilling Center ,and sathankulam Chilling Center are 1,00,000;
10,000; 20,000; 50,000; 10,000 Literer Per Day respectively.

Transporting:

The collected raw Milk from the above branches dairy forms is chilled at about
40 C and then, the chilled Milk is transported to tirunelveli main depot securely.
Transporting vehicle may have the double layered freezer attach with them.
Therefore the Milk securely comes to the depot without any air pollution.

6
Process of Milk:

Processing Hall

In Tirunelveli depot, processing the Milk is of two types as described below

The process of pasteurization is carried out. Then, transported Milk is

streamed at about 71OC and then chilling at 4OC to kill harmful bacteria. Then the
bacteria free Milk is stored in silo (Large Milk Storage Tank) at 6 OC. These Milk is
then packed in ¼, ½, 1 Literer pockets and then stored of about 7 OC to 8OC. Finally
these pocket Milk are distributed to various market places for sale.

7
Homogenization
 Homogenization is a process that reduces the size of fat globules by forcing
pressurized hot Milk through small whole causing turbulence,to break up the larger
fact globules so that they remain suspended rather than separating in a cream layer at
the top. Homogenization effects the development of atherosclerosis, coronary, heart
disease, Milk allergy, and Diabetes.
Pasteurization
It is a process by which the disease causing bacteria in the Milk are
destroyed without losing its nutritive values. The Milk is boiled at 60 0c for thirty
minutes and cooled quickly.
Whatever the method is used for preservations of food, cleanliness and general
sanitary conditions are imported.

To Access the QuaLitery of Milk

1. Reduction Test
It access whether the bacteria are present or not in the Milk. If bacteria
are present it kills the bacteria in that Milk.
2. MBR Test (methylene blue dye)

Lactase test
It is used to determine the lactic acid concentration in Milk and Milk
product since its value has to be kept under fixed low limits.
Chloride test
It is used to measure the quaLitery of salt in different dairy products.

8
Ammonia Test
 It is used to measure the ammonia concentration and will determine the
quaLitery the Milk.

Percentage of fat in Milk

The fat content in the Milk is shown in the following table

Table 1
Percentage of fat in Milk

Milk Fat percentage SNF percentage

Toned Milk 3.0 8.5
Standardized Milk 4.5 8.5
Double toned Milk 2.0 9.0

According to the fat and SNF content the type of Milk explained in the above
table are packed in the blue, green and red color pockets respectively.

High protein Milk fat 3.0%; SNF 9.0%.

High fat Milk fat 5.0; SNF 8.5%.

9
Different products:
  Skimmed Milk powder
 Aavin flavoured Milk
 Toned Milk
 Sugar free ice cream
 Milk sweet
 Butter
 Aavin mango drink
 Aavin curd

SKIMMED MILK POWDER

Aavin manufacture and market ISI quaLitery Skimmed Milk Powder in 500
gms carton and 1 kg polypack. It is manufactured in all the product dairies viz Erode,
Salem, Krishnagiri and Madurai and marketed throughout the State..

AAVIN FLAVOURED MILK

Aavin flavoured Milk is manufactured in bottles and tetrapak. It is in 5

flavours (200 ml)

10

 Strawberry
 Pista
 Cardomum
 Chocolate
  Pineapple

TONED MILK

UHT Milk is exclusively manufactured by Salem Dairy. It comes in 1

Liter and 500 ml package. Both Standardised (fat 4.5% and SNF 8.5%) and toned
Milk (fat3% SNF 8.5%) are available in this package. It is called Tetra Brik.The shelf
life of this product is 120 days. Salem Union is also manufacturing 500 ml UHT
package Milk which is called tetra fino. It is toned Milk (fat 3% SNF 8.5%). The
shelf life of this product is 90 days.

11
SUGAR FREE ICE CREAM
 Aavin Ice creams are very popular in the metro city Chennai and sub urban.
There are 25 flavours moderately priced available in all Milk parlours and Franchise
Retail outlets which are more than 150 in number.
Aavin introducing in cups for health conscious consumers. It is calorie
conscious product. Aavin ice cream is very well accepted by all segment people due
to its high quality. The calorific value of Aavin ice cream is 116 Kcal per 100 ml and
it contains 5g Fat, 3.1g Protein, 5.4 gm Carbohydrate, 0.6 g minerals and 8 g added
sugar. Due to high content of sugar, diabetic and calorie conscious people are
deprived of taking ice cream and hence it is highly essential to develop alternate
product to cater the need of all the people.Hence Aavin has proposed to introduce
Sugar- free ice cream. It contains unique Sucralose at 320 ppm level which is an
artificial sweetner, derived from cane sugar. It does not affect the blood sugar level.

Characteristics:

It is safe for children and pregnant women. It is non toxic, non-carcinogenic.

The majority of ingested sucralose is excreted unchanged.

12
 It is approved by United States Food and Drug Administration and also
approved by Prevention of Food Adulteration Act – 1955 (allowed maximum 750
ppm level for Milk Product based sweets)

It is highly stable even at 230oC unlike other artificial sweeteners.

Energy Value:

The Calorific value of the sugar free ice – cream is only 80.0 Kcal per 100 ml.
It contains all the ingredients as in ice cream but only 16 mg of Sucralose is available
instead of 8000 mg sugar to get the same sweet taste. It is important that Sucralose
content is 500 times lesser than sugar.
Since it is less calorific value and also as of no sugar in the product, it is so
safe for diabetics and calorie conscious people.

MILK SWEET

Aavin has now entered in Milk sweet division and periodically launch newer
varieties. The recent one is Mysurpa in 500 Gms and 1 Kg packings. These sweets
are manufactured in very high highly quality standards. Aavin also manufacture
Kalakanth & Gulabjamoon etc
13
BUTTER AND CHEESE

Plain Butter and Cheese 500 Gms is being manufactured in feeder balancing
dairies and marketed all over the State.

AAVIN MILK KHOA

Aavin millk khoa is king of all sweets. It is more dearer to the people of
Chennai. It is available in small packing like 25 gms, 50 gms and 100 packets and
also in 500 gms and 1 Kg bowls

AAVIN MANGO DRIN

Aavin mango drink (200 ml ) is popular among of its kind. It is packed in

tetrapak package. It has a shelf life of 180 days. It is manufactured in Salem dairy.

14
AAVIN CURD

Aavin curd is superior in quality and hygienically manufactured in

Ambattur Product Dairy , packed in heat sealed cups . It is available in all the leading
super markets and Aavin parlours and Franchise retail outlets. The Content of it 200
Millie Liters.

15
AAVIN MILK PRICE LIST
Table
P RICE LIST

Year Price in (Rs)

2001-2002 17.49

2002-2003 15.79

2003-2004 17.26

2004-2005 20.56

2005-2006 21.59

2006-2007 22.10

2007-2008 21.64
2008-2009 22.00
2009-2010 (up to June) 22.30
2010-2011 (up to Dec) 24.00
 16

MILK SELLING PRICE:

Government of Tamilnadu has also revised the selling price of Toned /

Standardised / Full Cream Milk in sachets and in AVM units the details of it are
depicts in the following table:

New price chart (With Effect From 19-11-2011)

AAVIN MILK: TARIFF STRUCTURE (in Rs)

Variety Fat SNF * Monthly Card ** Maximum Retail Price

(%) (%)
Existing rate Revised Existing rate Revised
rate rate

Toned Milk 3 8.5 17.75 24.00 20.50 27.00

1 Liter

12.00
Tone Milk 3 8.5 8.90 10.25 13.50
500 ml

14.50
Standardized 4.5 8.5 11.00 13.00 15.50
Milk 500 ml

14.50
Standardized Milk 50 4.5 8.5 10.75 10.75 15.50
0 ml
 thro AVM

16.50
Full cream Milk 500 6.0 9.0 12.00 14.00 17.50
ml

11.50
Double toned Milk 500 1.5 9.0 9.25 11.00 12.00
ml

Note:
Maximum retail price is followed in respect of Milk sold to non card holders
through depots, retailers or Automatic Vending Machines (AVMs)

17

Aavin products
MARKETING:

At present this union is marketing 60,000 LPG approximately in the

Tirunelveli and thoothukudi district through its agents, booths and parlours,
Table 4
SOURCE OF MARKETING
SOURCE NUMBE
 R
No of agents 86
Association 17
Private institutions 15
Govt.institutions 8
Societies 8
Milk booths 12
Milk parlours 14
No of Milk distribution 14
routes

The number of agents functioning in the state are of, the number of association
is 17, Private Instructions 14, Government Instructions8, Societies 8, Milk Booths 12,
Milk Parlours 14, and the number of Milk distribution routs is 14. The mass network
of distribution helps in the marketing of Aavin products.

18

Milk production:

Due to the technology development veterinary department in India leads to

receive more Liters of Milk to main depot. The Milk production depends on the
collection of Milk and its quality. The following table shows the rapid growth in Milk
production during three years from 2008 – 2011.
Table – 5
PRODUCTION OF MILK

Year Production (LPD) Increase/decrease

2008-2009 733812 -
2009-2010 771620 +37808
 2010-2011 760210 -11410

The above table shows the Aavin Milk production for the three years from
2008 – 2011. During the year 2008 – 2009, the company produced 733812 Liters per
day. In the next year the company has produced 771620. Comparing with the
previous years, the production of Milk increased up by 37808 Liters Per Day. In the
next year 2010 – 2011, the Milk production reduces by 11410 Liters on comparing to
that of Previous Year.

19
Milk sales Statement

The Milk sales mainly depend on the Milk production. The following are the
sales of report for the Milk sales for three years.
Table – 5
SALE OF MILK
Year Sales (LPD) Increase/decrease
2008-2009 585567 -
2009-2010 660034 +74467
2010-2011 688063 +28029

The above table shows that Milk sales increased rapidly between the different
years. The increase of turnover Per Day of Milk in 74467 Liters in 2009-2010.
When compared to that of during 2008 – 2009. But the same has decreased by
28029 Liters during 2010 – 2011 the administration has to analysis the reasons for the
reduction of turnover, ass the adversely affects the profitability and the efficiency.
Stringent efforts are required to improve the turnover and to ensure a steady
progress in their performance. This leads to get more profit of the sales department of
Aavin.

20
 CHAPTER 3
MAJOR FINDINGS AND SUGGESTIONS

FINDINGS
 The Aavin dairy development has been undertaken by the government. Thus, It
offers employment opportunity for mass of our population, both directly and
indirectly. The Aavin products are pure and quality of assured.

21
BIBILIOGRAPHY
 Encyclopedia
Wikipedia
Websites
www.Aavin.com
www.Aavinnellai.com

22