CHAPTER-1

HISTORY
Ludhiana city was founded in the time of Lodhi dynasty which ruled in Delhi from 1451-1526 A.D. The legend goes that two Lodhi Chief Yusaf Khan and Nihand Khan were deputed by Sikandar Lodhi (1489-1517 A.D.) to restore order in this region. They camped at the site of present city of Ludhiana which was then a village called Mir Hota. Yusaf Khan went across the river Sutlej in Jalandhar Doab to check Khokhars who were plundering the Doab and made a settlement at Sultanpur while Nihand Khan stayed back and founded the present city at the site of village Mir Hota. The new town was originally known as Lodhi-ana, which means the town of Lodi's. The name later changed to the present name Ludhiana. LOCATION Ludhiana is the most centrally located district which falls in the Malwa region of the State of Punjab. For Administrative purposes it has been placed in the Patiala Division. It lies between north Latitude 30o-34' and 31o-01' and east longitude 75o-18' and 76o-20'. It is bounded on the north by River Sutlej which separates it from Jalandhar district. The River also forms its northern boundary with Hoshiarpur district. On other sides it shares common boundaries with Rupnagar district in the East, Moga district in the West, and Sangrur & Patiala districts in the South and South east respectively.

ADMINISTRATIVE SET-UP
Ludhiana is the one of the five districts constituting the Patiala Division. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. No. of Sub - Divisions (Tehsils) No. of Sub - Tehsils No. of Blocks No. of Towns No. of Villages No. of inhabited villages No. of un-inhabited villages No. of Parliament seats No. Of Gram Panchayts No. of Assembly seats No. of Municipal Corporation No. of Nagar Councils No. of Nagar Panchayats 7 6 12 11 915 896 19 1 875 12 1 6 4

DETAILS Tehsils -7 1. 2. 3. 4. 5. 6. 7. Ludhiana East Ludhiana West Jagraon Samrala Khanna Payal Raikot Improvement Trusts -2 Ludhiana Khanna Sub-Tehsils - 6 Dehlon Koom Kalan Machhiwara Maloud Mullanpur Sidhwan Bet Nagar Council -6 Jagraon Raikot Samrala Doraha Payal Khanna

Nagar Panchayts - 4 1. 2. 3. 4. Machhiwara Mullanpur Maloud Sahnewal

Market Committees - 13 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Ludhiana Mullanpur Sahnewal Maloud Kila Raipur Raikot Machhiwara Khanna Jagraon Doraha Sidhwanbet Samrala Hathur

Blocks - 12 Ludhiana -1 Ludhiana -2 Dehlon Pakhowal Sudhar Raikot Machhiwara Khanna Jagraon Doraha Sidhwanbet Samrala -

BRIEF PROFILE OF VERKA MILK PLANT

Milk Production is a very important part of the agricultural economy in the State of Punjab. Punjab is one of the smallest States in Indian Union with a total area of 50,362 Sq. Kms., which is 1.5% of the Indian landmass. Dairy Farming is an age-old subsidiary profession in the rural areas of Punjab. Punjab is the second largest milk producing state in India, producing around 10% of the countrys Milk Production i.e. 8 million tones annually. 1. 2. 3. First Milk Plant, of the State was setup at Verka near Amritsar. The brand name of Milk and Milk Products was adopted as Verka. The Foundation stone of Milk Plant, Ludhiana was laid by Hon. S. Parkash Singh Badal, the then Chief Minister of Punjab in 1970. 4. Commissioning of the Plant was done by Punjab Dairy Development Corporation in 1974. 5. Inauguration was done by Late Smt. Indira Gandhi the then Prime Minister of India. 6. The capacity of the plant was 1.00 lac. Litre per day, including powder plaht of 7 MT. And now the milk handling capacity is 4.00 Lac Liter per day.

GENERAL INTRODUTION

Milk Plant, Ludhiana is a prestigious Milk plant of Punjab State famous all over the country and abroad for the supply of quality milk products. It has got 1st position in Northern Zone. Its foundation stone was laid by Mr. PARKASH SINGH BADAL, the chief Minister of Punjab on June 22,1970. This plant was inaugurated by our revered Prime Minister Smt. INDIRA GANDHI. Milk plant is cooperative Society and all its profits and losses are shared by the farmers (producers). Govt. does not provide any financial aid to Milk Plant Ludhiana, but Govt. supervision and control is there. Law and policy Maker is Govt. Here there is no dishonesty in milk plant. It is a very clean organization. The handling capacity of this is now of 4 lakhs ton per day. In the year 1983, PDDC merged into MILKFED and hence so control of Milk Plant transferred to MILKFED in the year 1983. But with the efforts of the Directors and milk producer's, control of Milk Plant transferred to milk unions, milk unions means union of milk producers. Milk Plant ,Ludhiana produces variety of milk products like milk, cake' butter, ghee, skimmed milk powder and standardized milk, Milk Plant sells better quality of pasteurized milk for the people. Ghee manufactured by this plant is not only sold in the country but also supplied to foreign country like Dubai, Nepal.

The new achievement of this milk plant is to achieve the International Quality Control ISO 9002. The Milk Plant Ludhiana is the first milk plant in India who received ISO 9002. Milk plant Ludhiana received it due to following reasons. 1. 2. 3. 4. 5. Due to operational efficiency of machinery. Due to reduction in consumption of material inputs Due to improvements in fats and SNF recoveries. Due to saving in labour with better utilization of manpower. Overall improvement in Quality of Milk and Milk products besides improved standards of cleanliness. Profits of Milk plant is distributed of worker and Milk producers as increase in rate of fat and SNF and to workers as bonus. In the year 1999 -1997 the Milk Plant Ludhiana earned gross profit of Rs.20.9 cr. (approx), of these profit 27 lacs distributed to workers as a bonus and Rs. 80.90 distributed as assistance for veterinary aid, seeds and to the Milk producer as a bonus. Under the operation flood dairy programme the Govt. of India selected the Ludhiana Distt. In Punjab, as one of the milk shed to develop a pattern. The concept of this pattern is to develop dairy as an industries allied to agriculture and prevent the harassment of farmers and consumer and to provide technical assistance.

Top management of Milk Plant Ludhiana is controlled by Govt. The Govt. does not give any aid to the plant but milk plant can receive loan etc. with the guarantee of govt. Policy maker is the Govt but money is spent by milk producers. Milk plant, Ludhiana manufactures a variety of milk products like Butter, Ghee, Milk power: Milk cake, paneer etc. besides providing good quality and hygienically processed pasteurized milk in pouches to the citizens of Ludhiana. Its products are famous not only in Home Market but also its one product-ghee has not good response in Foreign Market.

Machinery of best technology has been installed at milk Plant. The machinery is available for the production of the Following milk products: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Pasteurized fluid milk. Sterilized flavored milk. Milk cake. Paneer. Lassi. Ice Cream. Butter. Ghee. Skimmed Milk powder. Whole food. Baby food. Infant milk food.

10

But now only the following milk products are produced: 1. 2. 3. 4. 5. 6. Pasteurized/sterilized milk. Milk cake. Paneer. Butter. Ghee. Skimmed milk powder. Lured by high profits, some new concern also tried to set up their own plants. So our present margin has become less and future is looking dark ahead. But Milk plant, Ludhiana is still standing ahead and is not loosing courage. There is more competition is more new plants are emerging up. This plant has to set up its position. The main efforts are being done to lessen the overheads and to increase the turnover. The more milk we receive, the less the overhead will be there and more production. Private sector pays more emphasis on advertisement as it has maintained its position by always providing better quality products Efforts are being done to procure maximum milk from the villages. Milk plant, Ludhiana is paying a vital role in socioeconomic development of rural messes of Ludhiana Distt., where the market scene is dominated by middlemen and traders. Milk Plant Ludhiana has steadily marched

11

towards fix goal of becoming a strong and viable milk plant and is now at No. 1 in Northern Zone. All its official as well as workers are assets to Milk Plant, Ludhiana who are performing their duties diligently and with full zeal and energy. Also the building of Milk Plant, Ludhiana is nicely planed and there is a great system of work. We hope that it will maintain its reputation and goodwill. May it progress by leaps and bounds.

PROFILE Full Name : The Ludhiana Distt. Co-operative Milk Producers Union Ltd. Milk Plant, Ludhiana. State Reg. Office : : Punjab Verka Milk Plant, Ferozepur Road, Ludhiana-141 004

Head Office

Punjab State Co-operative Milk Producer Federation United SCO 153-155, Sector 34-A, Chandigarh Pb.

Date of Registration Date of Inauguration Commencement of Production

: : :

1972 with PDDC 31st Oct. 1974 Feb.1979

12

Constitution

Co-operative

Bankers

Punjab State Central Co-operative Bank

Product Brand Name Members No. of Societies Turnover Milk Chilling Center

: : : : :

Verka 78,000 800 180 Crore 06

13

COMPANY DETAILS
The Punjab State Co-operative milk producers federation limited popularly known as MILKFED. Punjab came into existence in 1973. It was backed by twin objective of providing remunerative milk market to the milk producers of the state on the one hand and to provide technical inputs to the milk producers for the enhancement of milk production on the other. Although the federation was registered much earlier, it took the centre stage of Punjab dairy scenario in 1983 when all the milk plants of Punjab Dairy development corporation Ltd were handed over to Co-operative sector and the entire state was covered under OPERATION FLOOD to give the farmers better value and to customers the better products. The organizational set up of MILKFED is based on a three tier system: Milk producers Co-operative societies at village level Milk Co-operative Unions at Districts level. Co-operative milk marketing federation as an apex body at State level

{MILKFED}. MILKFED with its network of over 5000 villages milk producers Cooperative societies and over 3 lakhs milk producers form a strong network providing assured market to milk producers. MILKFED and its units have a workforce about 5000 employees and also provide regular employment to about 600 transporters.
14

MILKFEDs NETWORK
MILKFED has its milk unions in almost all the districts of Punjab. These district units are:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Amritsar Bathinda Bassi pathana Chandigarh Faridkot Ferozpur Gurdaspur Horshairpur Jalandhar Hoshiapur Jalndhar Ludhiana Patiala Ropar (Mohali) Sangrur

These plants in all these unions are being run under the brand name VERKA.

15

GROWTH OF VERKA AT GLANCE

Particulars Functional societies Membership Average daily milk procurement Peak milk procurement Avg daily city supply Plant capacity utilization Interest on loan paid Depreciation Gross profit (before dep) Net profit Turnover

Units Nos. (000) (000)ltrs (000)ltrs (000)ltrs (%) (Rs.in lakhs) (Rs. In lakhs) (Rs.in lakhs) (Rs. In lakhs) Rs.in crores)

1990-95 695 57.2 180 267 100 53.94 132.78 144.71 339.51 62.02 80.72

1995-2000 736 64.0 269 374 150 74.20 167.18 199.90 559.07 359.17 142.14

2000-05 767 69.2 272.6 376 154.3 85.60 146.88 144.00 348.29 204.29 163.93

16

SALIENT FEATURES

i ii. iii. iv. v. vi.

Milk plant has got ISO-9002 International Quality Certification Mark. Milk rate paid you the producers among alt the unions highest in the state Milk procurement highest among all the unions in the state. Milk procurement per society/day highest among all the unions in the state 100% Milk producers co-operative societies are in profit. Aggregate profit of the societies in any year is the maximum among all the unions in the state. Ever since inception, customer satisfaction and consistency in quality is the key thrust area of this organization.

vii. viii. ix. x. xi. xii.

Cattle feed sold to societies maximum among all the unions in the state. F.M.D. vaccination maximum among all the unions in the state Milk transportation cost lowest among all the unions in the state. Milk chilling cost lowest among all the unions in the state. Average daily city supply maximum among all the unions in the state. Embryo transfer technology introduced in the field for the first time in north India. Number of milk testers (new technology for fat testing at village level) provided to milk. Societies is the maximum in the state.

xiii.

Milk products selling at premium rates and ghee exported to gulf countries Philippines & S.M.P. exported to Bangladesh.

xiv. xv. xvi.

Capacity utilization is the maximum on yearly basis. Fuel cost kg. milk is lowest among all the unions in the state. Electricity cost per kg. Milk is lowest among all the unions in the state.

17

xvii. Leading union to start cooperative development programe to strengthen cooperative base at the village level and to introduce progeny testing programe for improvement of animal breed. xviii. Annual turnover more than Rs.80 crores of rupees among all the unions in the state. xix. Annual profitability among all the union in the state.

18

OBJECTIVES OF THE COMPANY

1.

To strengthen dairy sector, MILFED came into existence in 1978 and Simultaneously Distt Milk unions were formed

2.

Village level cooperative societies were also formed on Anand Pattern. The system was run by the farmers, of the farmers and for the farmers.

3.

To give remunerative prices to farmers and to ensure permanent market for the whole year.

To provide technical inputs like artificial insemination, to improve the breed of animals, animals health services, preventive disease treatment and awareness regarding farm management etc.

5.

To provide ISI marks good quality balanced Cattle feed and fodder seeds to the farmers

19

NAME AND LOCATION OF GROUP COMPANIES & PRODUCTS MANUFACTURE/ OFFERED BY THEM MILKFED has a strong value of addition base through its 11 district Cooperative Milk producer's Unions and 10 Milk plants having chilling centers having chilling capacity of about 5 lacks Its. per day, all of whom have attained self sufficiency or are on the thresh old of attaining it. 1. JALANDHAR Official Address:General Manager The Doaba Co-op Milk producer's unions Ltd. G.T. Road bye pass, Jalandhar Products:Ghee, S.M.P., W.M.P., Dairy Whitener, Butter, Paneer, Vigour (Malted Milk food) & Ice-cream Installed Handling Capacity 300(' 000' Litres per day) Milk Chilling Centers Under Jalandhar :Khat Kar Kalan, Shahkot, Sultan Pur Lodhi. 2. HOSHIARPUR Official Address:General Manager, The Hoshiarpur distt.co-op milk producer's Union Ltd. Dharamshala Road Hoshiarpur. Products:20

Ghee, S.M.P., W.M.P., Paneer etc. Installed Handling Capacity 100 (000Litre per day) Milk Chilling Centre under hoshiarpur:Dasuya, Padrane,Balachour

3.

SANGRUR Official Address:General Manager, The sangrur distt. Co-op Milk Producer's union Ltd Post Box N 0-9 Sangrur. Products:Ghee,S.M.P, W.M.P.,etc Installed Handling capacity 150 (000' Litres Per day) Milk Chilling Centres Under Sangrur:Changliwala, Jorepul, Sehna, Mehal Kalan

4.

BATHINDA Official Address:General Manager The Bathinda Distt Co-op Milk producer's union Ltd Dabwalli Road, Bathinda. Products :Ghee, S.M.P., W.M.P, Butter, Paneer, Milk -cake, etc. Installed handling capacity 125('000' Litres Per Day) Milk Chilling Centres Under Bathinda:Bhikhi,Sardulgarh,Rampura Phool, Talwandi.
21

5.

ROPAR Official Address:General Manager, The Ropar Distt. Co-Op Milk Producer's Union Ltd. S.A.S.Nagar (Mohali) Products:Ghee,Cheese,Paneer,Curd,etc . Installed Handling Capacity 100('000' litre Per Day) Milk Chilling Centres Under Ropar:Morinda, Norpur Bedi, Jhinjhri.

5.

LUDHIANA Official Address:General Manager, The Ludhiana Distt.Co-Op Milk Producer's union Ltd Jagroan Road, Ludhiana. Products:Ghee, S.M.P., W.M.P, Butter, Paneer, Milk-Cake etc. Installed handling Capacity 400('000' Litres Per Day) Milk Chilling Cetres Under Ludhiana:Macahiwara, Rajkot, Ramgarh Saradana, Bija, Khanna

6.

PATIALA Official Address:General Manager The Patiala Distt.Co-Op Milk Producers Union Ltd. Vill. Hasanpur Sarhand Road, Patiala Products:22

Ghee, Cheese & S.F.M. Installed Handling Capacity 100('000' Litre Per Day) Milk Chilling Centres Under Patiala:Saman (HIF), Sirhind (HIF), Nabha (HIF) 7. GURDASPUR Official Address:General Manager, The Gurdaspur distt.Co-Op Milk Producer's Union Ltd Pathankot Road, Gurdaspur Products:Ghee, S.M.P., W.M.P. & S.F.M. Installed Handling Capacity 150('000' Litre Per Day) Milk Chilling Centers Under Gurdaspur :Kalanaur,Tugalwala, Batala 8. AMRITSAR Official Address:General Manager, The Amritsar Distt.Co-Op Milk Producer's Union Ltd Amritsar Products:Ghee, S.M.P., W.M.P. Butter Paneer, Milk-Cake & S.F.M. Installed Handling Capacity 100('000 Liters Per day) Milk Chilling Centers Under Amritsar:Lopoke, Mehta, Patti, Kahdoorsabi sahib TWO CATTLE FEED PLANTS
23

1.

KHANNA Produced:ISI MarkII, Verka Special, Mineral Mixture

2.

GHANIA-KA-BANGAR Distt. Gurdaspur Produced:ISI Market, Verka Special Mineral Mixture

The marketing department of MILKFED is highly organized and professionally managed. Its turnover was 346 crores in 1995-96. It was 397 crores in 1996-97, In 1997-98 it rose to 447 crores, it was 488 crores in 1998-99 and finally its 523 crore in 1999-2000. It shows that is a contest rise in turnover.

AGENCY ALLOTMENT
There is a procedure for the allotment of a agency, which is followed step by step. We will discuss each step in detail as follows:First of all the party who want to takes agency has to submit an application in which party will request the managing director for the allotment of the agency. The application should be written on the plain paper. After receiving the application the marketing: department took the survey to find that is there a need of agency? What is demand? Is there will be any effect on the other Verka agencies? In it will be profitable. So survey is taken in keeping in mind all the above questions. If the department finds that it will be profitable then it will proceed further or it will be finished here. If the department finds it profitable then the applicant party has to fill up a document named
24

"SURETY BOND". In, surety bonds any others two persons have to give surety for the same party. The two persons who will fill up the surety bond will become the guarantors of the party or dealers. The milk union can cover the loss or damage if any because of default of the dealer from the guarantors up to 50,000 from each. After receiving the surety bond the - managing director issues a temporary authority letter to the applicant party. In this agency is allotted for sale of fluid milk on purely temporary basis under home delivery scheme for that given area. Terms & conditions for working of agency under the home delivery scheme of milk union are given as follow: - As the agency is allotted i.e. all the documents have been fully prepared as the agency in sound in the of milk plant. The agent/dealer i.e. the honour of the agency according the demand of the products in the location send his demand to be marketing department in the milk plant.

25

ORGANISATION STRUCTURE
In the organization of Milk Plant, Ludhiana the test of management and director of subordinated is divided according to the type of work involved. All activities are grouped together according to certain function like production, marketing, finance, personnel etc. and are put under the charge of different persons. The persons incharge of a function is specialist in it and bring out the best in himself The top management of Milk Plant Ludhiana is selected through voting by the members of the milk societies. Now the question arises that how the milk societies are formed. So, firstly the field staff of milk plant, visits the various villages for encouraging people to make co-operative department to procure milk from the villagers minimum 35 members are required for making society. To become the member of the society a person has to pay Rs.20 as membership fee and then he purchases a share of Rs. 2. At present there are 65000 members of the milk societies

26

The following chart shows the organizational structure:-

Board of Directors

Executive Directors

D General Managers

Production Manager

Personnel Manager

Sales Manager

Financial Manager

Superintendent

Superintendent

Sales Coordinator

Accountants

Foreman

Foreman

Foreman

Foreman

Salesman

27

THE EXTENSION OF THE BRAND

Milk production daily 2.50 Lac LPD and Peak procurement 4.5 lac LPD. After winning faith of innumerable consumers, Verka and did not stop. For there was a scope for more. Changing times brought new trends, needs, tastes and hopes. Verka dynamic as ever, too acquired newer forms. By adding value to milk to satisfy a quality- conscious society. And what success! For, consumers could have their own pick as we came up with varied varieties of cheese like the Processed Cheddar Cheese, Cheese Spread, and cheese singles. Machinery of best technology has been installed in the Milk Plant. The machinery is available for the production of following milk products: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Pasteurized Fluid Milk. Sterilized flavoured milk. Milk cake Paneer Lassi Ice Cream Butter Ghee Skimmed Milk Powder Whole Milk Powder. Baby Food Infant Milk Food

28

NECESSITY FOR PRODUCTION ENHANCEMENT

1. 2. Milk production in the area increased manifold with the result. Resultantly started receiving daily 2.50 LPD of milk. To increase the participation of women 120 exclusively women societies are organized with 15300 women members. through Punjab Women Dairy Project a Central Govt. sponsored scheme. 3. Milk Production in the area increased manifold with the result. Resultantly started receiving daily 2.50 Lac LPD of Milk and Peak procurement 4.5 ac LPD 4. 5. 6 To cater to the increased demand, necessity of expansion of milk plant arose. Capacity of milk Plant enhanced from 1 Lac to 4 lac Litres with additional powder. Plant of 30 MTs. Plant is having Latest State of Art Technology with MVR (Mechanical Vapour Reprocesses) along with a drier with fluidized bed through which agglomerated Powder is manufactured. 7. 8. 9. 10. This improved the socio- economic conditions of marginal and poor farmers. The profitability of the plant and turnover of the plant improved 78000. All the societies are in net profit and distributing bonus to its members. a lot.

No. of societies increased from 94 to 751 and its membership from 5400 to

29

QUALITY OF MILK AND MILK PRODUCTS

1. 2. 3.

To improve the quality of raw milk, Clean Milk Production program started in 650 villages and resultantly the quality of products increased. Milk Plant, Ludhiana was the First in India II) Dairy Sector to get ISO Certification. Under ISO Certification and HACCP (IS 15000) Milk Union started export of Ghee, SMP to Gulf Countries Philippines, Manila, South Africa, Singapore, Bangladesh etc. The export is more than 5.5 crore during the last year.

4. 5. 6. 7.

To further improve the quality of Raw Milk, Milk Union started 365 Automatic milk collection Stations at village Level. To meet the Challenges of WTO Milk Union started TIFAC program with the help of Ministry of information. 22 Bulk Milk Coolers have been installed at village Level to chill the milk on this spot and to check bacterial count. 28 model dairy demonstration farms have been established including milking machines in distt. of Ludhiana which has encouraged the farmers to adopted dairy on large scale.

8.

Milk Union, Ludhiana is first in India which has installed Bectoscan worth 70 lacs and Somatic cell count machine have been installed at milk plant, Ludhiana.

9.

Further 23 BMC has been approved under central govt. Scheme on 75% grant to be installed in societies.

30

PRESENT STATUS! ACHIEVEMENT OF THE PLANT

1. No. of societies increased from 94 to 751 and its membership from 5400 to 78000. 2. 3. Milk Procurement has increased from 10200 LPD to 2,50,000 LPD Highest milk price is being paid to the milk producers as compare to other plants in the states 4. Products being manufactured by Ludhiana Plant are sold at premium rates through out of the country and in the International Market. 5. 6. City supply has increase from 66000 LPD to 1,60,000 LPD. Turnover the plant touched to 180 crores Profit of the union has increased manifold. 7. 8. Capacity utilization of the plant is more than 80%. Milk products like Ghee, Table Butter, Skimmed Milk Powder, Whole Milk Powder, Curd, Paneer, Milk Cake etc are being manufactured by Milk Plant Ludhiana. 9. Milk Union, Ludhiana is further progressive by leaps and bounds and it is hoped that in the year to come, it will achieve excellent results and will help improve social and economic condition of the people at large.

31

CHAPTER-2

32

SWOT ANALYSIS
The SWOT analyses is a systematic identification of internal strength and weaknesses of the business and environment opportunities and threats being faced by that business and provide information that is helpful, in matching the firms resources and capabilities to the competitive environment in which it operates. It is necessary for the organization to analyze its weakness that can be removed by undertaking the project and what opportunities can be exploited and strengths can be strengthen more. As such, it is instrumental in strategy formulation and selection. It is dynamic and useful framework for choosing a staretgy.The following diagram shows how a SWOT analysis fits into an environmental scan.

33

SWOT Analysis Framework Environmental Scan

Internal Environment External Environment

Strength

Weakness

Opportunity

Threats

34

SUCCESS OF VERKA

Strengths of Verka: The oldest brand in milk. Quality of the milk is good. Marketing network system is very strong. They have no as such competitor in market. They are covering the each and every area of Ludhiana.

Weakness of Verka: Leakage problem of Verka. Margin to the retailer is very less. No timing of the supply of the milk. Services they provide are not up to mark.

35

CHAPTER-3

36

OBJECTIVES OF STUDY

To study the procurement, reception and processing of milk To study the various milk products produced by Milk Plant Ludhiana. To study the finance section and to study its financial activates.

37

CHAPTER-4

38

RESEARCH METHODOLOGY
Research methodology is a careful investigation or inquiry in a systematic manner and finding solution to a problem in the research. This section of the report describes the research methodology adopted to achieve the objectives of the study. It includes the scope of the study, collection of data and analysis of data of the study. Scope of the study The scope of study is to test the awareness of Verka Ghee in its home location at Ludhiana. This is basically to test the brands synergy with its local population which includes brand awareness, strength, consumer perception and their behavior. Research Design The research design is an arrangement of condition for collection and analysis of data in manner that aims to combine relevance to the research purpose with economy in procedure. The research problem in clear cut terms helps the researches to prepare a research design. It constitutes the blueprint for the collection, measurement and analysis of data. It is the strategy for a study and the plan by which the strategy is to be carried out. The research carried down is descriptive in nature. PRESENTATION OF TABULATED DATA I have collected the data from consumers regarding Verka ghee have done my survey in B.R.S. nagar, Inder nagar, Satguru nagar, Ghumar Mandi Chownk, Pakhowal road & Maharaja nagar etc. in Ludhiana city. I have collected the information regarding Verka ghee by the survey & filled a retailers satisfaction sheet. I have done my survey by the response of the consumers.

39

PARTICULARS OF RESEARCH SAMPLE SIZE: 100. SAMPLING UNITS: Bars, confectionary Stores, Bakeries departmental stores and General stores. INSTRUMENT OF SURVEY: Questionnaire. CONTACT METHOD: Personal method.

AREAS COVERED: Under mentioned areas of Ludhiana City:

B.R.S. Nagar Sarabha Nagar Inder Nagar Satguru Nagar Aarti Chownk Rajguru Nagar Pakhowal Road Ghumar Mandi Chownk

40

SOURCES OF DATA 1)
2) 3)

Primary Data Secondary Data Sampling Data

1.

PRIMARY DATA Control facts and figures collected systematically and presented for purpose

of drawing interfaces. The primary data is collected through survey method. These are original observations connected for the first time. It is a pure data. Direct interviewing has collected the primary data. For this interview Questionnaire was prepared, the questionnaire was constructed by keeping the objectives of the study in the time. These questions were directed to the dealers to cover all the aspects relating to the product the question give the details about the supply of the product, the awareness towards different brands. There problems etc. the schedule cover many aspects about the brand choice, brand loyalty, availability of the product, price awareness of the product etc.

2.

SECONDARY DATA: It has been collected through examination of some files records, magazines,

books and information received from the sales department of Verka Milk Plant, Ludhiana.

3.

SAMPLING DATA: A sampling plan was designed in which three major decisions has been taken

about the sampling unit, sampling size and sampling procedure.

SAMPLING UNIT:
41

In this it was decided that who are to sample. The sampling unit of the project is the dealers of Ludhiana, dealing with Verka Milk Plant.

SAMPLING SIZE: Here it was decided about the number of people to be served. I have adopted

for small sample size. SAMPLING PROCEDURE: This deal with the issue of the respondents are to be chosen. I have adopted convenient judgment sampling procedure

42

CHAPTER- 5

43

ANALYSIS AND INTERPRETATION

Mainly percentage method of analysis is used to interpret the result as it is the most commonly and simplest method of interpretation. Preparation of tables histogram, pie chart and other diagram was done so as give a simple and clear view point of the result obtained by the study For the purpose of analyzing, raw data was summarized in a master table and from this table the results have been carried out. The questions having alternative choices were analyzed by taking percentages. In the case of questions on Likerts point scale, the mean scores and percentages were calculated. In case of ranking questions the total score has been added and final ranking is given. The questions to which there were specific answers the ranges were clubbed and percentages were calculated. In case of explanatory questions, the general suggestions were summarized.

44

QUESTIONNARIE FOR CONSUMERS

Q1.

Do you like ghee? Percentage 65% 35%

Options Yes No

Percentage

65% 70% 60% 50% 40% 30% 20% 10% 0% Yes No 35%

Interpretation: 65% of the respondents said that they like Verka Ghee, while 35% respondents do not like this.

45

Q2.

How much average quantity of Ghee do you buy monthly? Percentage 40% 35% 25%

Options Below 2 kg 2-5 kg Above 5 kg

40% 40% 35% 30% 25% 20% 15% 10% 5% 0% Below 2 kg 2-5 kg Above 5 kg 25% 35%

Interpretation: 40% of the respondents used below 2kg. of ghee in a month, where as 35% respondents use 2 to 5 kg. and 25% use above 5kg. verka ghee do not like this.

46

Q3.

Which brand of ghee you like ? Percentage 14% 58% 7% 10% 6% 5%

Options Uttam Verka Amul Gopika Nestle Home made

Uttam

Verka

Amul

Gopika

Nestle

Home made

6% 10% 7%

5%

14%

58%

Interpretation: 58% of the respondents like Verka Ghee followed by Uttam by 14%, Gopika by 10%, Amul by 7%, Nestle by 6% and homemade by 5% respectively.

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Q4.

Do you like Verka Ghee? Percentage 58% 42%

Options Yes No

Yes

No

42%

58%

Interpretation: 58% of the respondents like Verka Ghee, while 42% respondents do not like this.

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Q5.

What are the reason for buying Verka ghee? Percentage 17% 20% 13% 30% 20%

Options Brand Image Good quality Good Taste Proper available All of these

Percentage 35% 30% 25% 20% 15% 10% 5% 0%

Brand Image Good quality Good Taste

35%

20% 15% 15% 10% 5%

Proper All of these available

Home made

Interpretation: 30% of the respondents said that they buy Verka as it is easily available, 20% go for quality, 17% brand image, 13% for good taste.

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Q6.

What are the reason for not buying Verka ghee? Percentage 15% 70% 10% 5%

Options Bad quality High Price Normal Taste All of these

Percentage 70%

70% 60% 50% 40% 30% 20% 10% 0%

Bad quality

15% 10% 5%
High Price Normal Taste All of these

Interpretation: 70% of the respondents said that they do not buy Verka Ghee for his high price and 15% for inferior quality.

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Q7.

What sort of packing do you prefer? Percentage 70% 30%

Yes No

Options Poly Pack Tin

30%

70%

Interpretation: 70% of the respondents prefer poly packs and 30% use tin packs.

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Q8.

Are you satisfied with publicity of Verka ghee? Percentage 60% 40%
Yes No

Options Yes No

40%

60%

Interpretation: 60% of the respondents said are satisfy with the publicity of verka whereas 40% are not satisfied.

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Q9.

Do you know any scheme on any brand of ghee? Percentage 30% 70%

Options Yes No

Yes

No

30%

70%

Interpretation: 70% of the respondents are not aware about any schemes on any brand of verka.

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Q10. Are you satisfied with Verka Ghee? Options Yes No Percentage 58% 42%

Yes

No

42%

58%

Interpretation: 58% of the respondents are satisfied with verka ghee where as 42% of the respondents are not satisfied.

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CHAPTER- 6

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FINDINGS Milk Plant, Ludhiana is a sort of cooperative societies, near about there 730 societies. years. The production of butter has declined due to less availability of milk for butter making. The production of ghee has increased 2.7 times in last 5 years and it has been due to good response not only from home market but also from foreign market. Due to perishable nature of milk cake the production has decreased but in 1992-93 there has been in a increase in production and so on to the further year 99. There has been 2 time increase in production of milk powder during last 5 years and it has been due to the good quality of milk powder produced in Milk Plant, Ludhiana. There had been about 14 Lacs profits during last year and it has not increased as much as efforts were increased. The milk plant, Ludhiana has invested in Milk Fed share and Central Cooperative Bank share. Milk Plant, Ludhiana has purchased cattle feed and seeds worth 3,57,43,638.20 and 8,822.25 respectively to supply them to the milk producers. The production of panner also declined due to it perishable nature. There has been overall decrease in production by 50% during last five years. The city supply of milk has increased 2.7 times during the last five

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Milk plant, Ludhiana has six milk bars of the marketing of various milk products.

Ghee is the main contributor in terms of money among various milk products in the market.

Milk Plant, Ludhiana does not manufacture sterilized/flavored milk bottles but brings it from Patiala for sale.

It also brings Verka vigour from Chandigarh for sale in the local market.

It has its head office at Chandigarh which controls all the affairs of all the milk plants.

Milk Plant, Ludhiana does not depend upon advertisement for the sale of its milk products because there is no any competitor.

There is lack of advertisement because consumers do not know about the whole product range offered by Verka.

Dealers are unhappy from the new bonus policy of the plant. There is major problem of leakage of milk pouches due to old machinery.

Dealer margin is less as compared to other Companies. No personal selling team is send by Milk Plant to different localities of the city to create awareness about Verka Milk & Milk products among people.

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CHAPTER- 7

58

LIMITATION Main problem is the packaging problem. I found that most of the dealers have complaint of the packaging because if packaging is not up to the mark than milk will be leaked on the packet and this also result in losses to the dealers. After analyzing the study I have found that many problem are faced by the dealers of Verka Milk & milk products. According to the regulation they provided one leadership (agency) in 1 km area no other agency will provided in that 1 km area. But it has been found that in many areas there is existence of 2 agency in one km area. It will effects the dealer sales of Verka milk & milk products because due to number of agencies dealers came in competition with each other and they provide milk final consumer at lesser margin. Another problem is that transporters are not taking back the leakage pack from the dealer at the time if delivery and more over handling of trays by laborers is not up the mark.

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CHAPTER- 8

60

SUGGESTIONS According to me first of all the Verka Milk Plant, Ludhiana should provide training about storage of milk. To arrange a camp to aware the consumers as well as dealers about the Verka Milk plant & Products. To increase the advertisements expenses so that awareness among people increases. To advertise its ISO-9002 and 15000 (HACCP) it will also increase the sale of Verka because people know that ISO 9002 certified they will buy the Verka milk products in large quantity. According to me Verka Milk Plant of Ludhiana should improve packaging of the milk which will satisfy the dealers as well as consumers. Improve the quality of milk & other products. They should provide one agency in one area so that the dealers competition will decrease and they can get appropriate margins. They should provide some sale promotion schemes to the dealers so that they can increase sale of Verka product. Verka should provide de freeze to the dealer to store the milk for saving the quality of milk. Increase the commission of the dealers, increase the margin of dealer & provide timely. So in nutshell Verka cooperative should emphasis on the very fact of enhancement in the services to be provided to the dealers & also to improve the quality of the
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various products which lead to higher satisfaction level among the dealers & consumers which will in turn the sales.

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CHAPTER- 9

63

CONCLUSION

From the study I concluded that every person is aware about Verka Products but every person is not aware about all products of Verka due to less advertisement. Some of the middle class people are not able to buy the product because of its high price. Consumers want decrement in price with best quality so that middle class people can able to buy the products. There is a need to improve quality and design of Verka Products, only 20% people are regular consumer of Verka so company has to take these problems in mind if they want to compete with other brands and want to become market leader.

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CHAPTER- 10

65

BIBLIOGRAPHY

ANNUAL REPORT OF VERKA MILK PLANT. REPROT OF MILK CHILLING CENTRES. REPORT OF DIFFERENT SOCIETIES. BIRADAR, R.D. [1986] DAIRY INDUSTRY IN INDIA. DAIRY GUIDE.

INDIAN INSTITUTE OF PUBLIC OPINION [1995] MARKETING MANAGEMENT BY SONTAKI

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67

QUESTIONNARIE FOR CONSUMERS NAME : CITY: Q1. Q2. Do you like ghee? a) a) c) Q3. a) c) e) Q4. Q5. a) a) c) e) Q6. a) c) Q7. a) Yes Below 2 kg. Above 5 kg Uttam Amul Nestle Yes Brand image Good Taste All of these Bad quality Normal Taste Poly pack b) d) b) High price All of these Tin b) d) f) b) b) d) Verka Gopika Home made No Good quality Proper available b) b) No 2-5 kg. How much average quantity of Ghee do you buy monthly? AGE PHONE NO. SEX

Which brand of ghee you like ?

Do you like Verka Ghee? What are the reason for buying Verka ghee?

What are the reason for not buying Verka ghee?

What sort of packing do you prefer?

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Q8. Q9.

Are you satisfied with publicity of Verka ghee? a) a) a)

a) b) c) d) e)

Yes Yes Yes

Decrease the price of ghee Improve the quality Improve the package Proper availability Any other

b) b) b)

No No No

Do you know any scheme on any brand of ghee?

Q10. Are you satisfied with Verka Ghee? Q11. Do you want give any suggestion then tick:-

(Please Specify) --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Signature____________

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