History of the Organisation:

Visakha Milk union was registered under Co-operative Act in 1973 and Commissioned in the year 27th September, 1977 with an initial capacity of 50 thousand liters per day. Visakha Milk Union comprises of 3 districts i.e., Srikakulam, Vizianagaram and Visakhapatnam are its operational area. Visakha Milk Union took conversion to 1995 Model Act as Srivijayavisakha Milk Producers Mutually Aided Cooperative Union Limited, (Visakha Cooperative Dairy) on 08-07-1999. Visakha Milk Union converted as Srivijayavisakha Milk Producers Company Limited under the Companies Act 1956 under Part IX A with effect from 06-012006. The area of operation extended to another 2 districts i.e., East Godavari and West Godavari Districts with total coverage of 5 districts currently

Profile of product(s)/services:

The visakha diary products are as follows: Milk Milk products

The milk and milk products are sub categorised as follows: Milk: Full cream milk Double toned milk Homogenised milk Standardised milk

Milk products: Butter milk Lassi Curd Misthi doi Shrikand Butter Milk cake Ghee Paneer Zest flavour milk

Mission,Objectives and Strategies of the organisation:

MISSION STATEMENT:

Visakha Dairy is committed to enhance the milk procurement through Technical inputs by providing Quality services to our member producers by ensuring economic viability to improve socioeconomic conditions of our members. Visakha Dairy is also committed to supply quality milk and milk products to consumers. Our Dairy shall become top dairy in the country with its inspired team of employees. We, the inspired Team of Employees are dedicated to Co-operation, Honesty, Discipline & Time, Quality & Purity, Hard Working, Transparency, Trust & Belief on Organization, Mutual Respect, Skill Development & Education.

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Share holder s Value

OBJECTIVES: Our main object is to serve the farmers and to give help to their economical development, and provide Quality Milk & Milk Products to the Consumers. Visakha Dairy Expansion from 1986-87 1989-90 1991-92 2000-01 2002-03 50,000 to 1,00,000 liters per day 1,00,000 to 1,50,000 liters per day 1,50,000 to 2,00,000 liters per day 2,00000 to 3,00,000 liters per day 4,00000 to 5,00,000 liters per day

The turnover of Visakha Dairy touched 583 crores during the year 2010 11 and Equity build up is 135 Crores. Power Plant capacity 13 MT per day Capital outlay 7 Crores commissioned in May, 1998. U.H.T. Plant capacity 30,000 Liters Per Day and commend on 27-05-2001. Thereafter one 500 ml FINO is added in the year 2002. Later 2 FINO TFA1

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Machines commissioned 28-06-2008. Presently on average day wise packing of all types U.H.T. Milk crossed 80,000 lts per day. Milk Pouch Filling Unit II constructed to accommodate 2.5 Lakh Liters Per Day. Fat Handling Unit II: At present 4 MTs capacity Ghee/Butter Handling and strengthened to 9 MTs. Extended Shelf Life Packing - In order to facilitate the availability of milk to the public more convenience, a specially processed milk was launched in the pouches which has a shelf life of 14 days. Visakha Dairy proudly launched such milk variant for the FIRST TIME in Indian market where as major FMCG companies are following us, the plant has a capacity of 2.5 lakhs / day. Visakha Dairy got accreditation for the Quality Management System (ISO 90012000) & HACCP Certification during the year June, 2003 and Quality Management. Increasing productivity of work force To introduce new products and create new markets Customers service and customer satisfaction Improving work culture among the employees Capitalizing on company strength and use of corporate assets Continuous innovation To provide a growth rate of about 10% p.a. Improve the advertising effectiveness To ensure that a large proportion of its sales is directed towards the sectors and urban sectors

Strategies of the organization Company collects information for management requirements, customer and competitors activities, product, and new developments. This helps to understand changes in market and demand forecasting. Unit takes into account the changes in the regulatory and legal requirements of the business. On the basis, and depending upon specific requirements, company has formulated long term, midterm and short term strategies.

Short Term Strategies (0-1 Year) Focus on Capacity utilization and cost Power plant commission Mid Term Strategies (0-3 Years) Focus on Identifying areas of growth Operational excellence Outsourced business Enhancing product capabilities

Long Term Strategies (0-5 Years)

Focus to build on Identified potentials Improve portfolio mix Geographical expansion in Domestic and exports Initiatives to increase gross margins

Policies and Procedures followed:

Farming system can be improved through clear policies and procedures. Clear policies and procedures will structure your farming enterprise to enable the farm to operate without the key person. Clear policies and procedures will help with staff training and ensure tasks are consistently completed. Some of the key areas that require clear policies and procedures for permanent and relief staff include:

POLICIES FOLLOWED

QUALITY POLICY

The Visakha dairy is committed to meet excellence in every activity by each employee in the organization in order to provide products and services, which meet or exceed the expectations of our customers.

QUALiTY IS ACHIVED BY

Developing employees through education and training and encouraging them to pursue continuous improvement in quality. Incorporating quality while designing our products and services and in the processes, through which they are produced, thus ensuring performance and reliability. Creating significant customer value in the pursuit of improving the quality of our products, services or processes. Developing relationships with suppliers, driving quality initiatives and supporting their quality management efforts. Training and developing our Business Associates to achieve superior levels of customer satisfaction and delight in all their interactions with customers. Conforming to Quality systems, which enable us to undertake the responsibilities we have towards the environment and the community.

ENVIRONMENT POLICY

Visakha dairy Industries Limited, a leading producer of milk and milk products, is committed to making a net contribution to the environment by minimizing the impact of its activities, products and services by specific actions to upgrade the environment.

TO THIS END:

Visakha dairy will comply with the applicable legal & other Requirements. Visakha dairy will strive to continually minimize environmentally harmful emissions and wastes for prevention of pollution. Visakha dairy will recycle, reuse viable process wastes. Visakha dairy will communicate with all persons working for and on behalf of the organization on the importance of protecting and improving the environment. Visakha dairy will emphasize on continual improvement through deployment of adequate resources to implement its Environmental Policy and actions Visakha dairy will make the policy available to public interest.

 SAFETYPOLICY

All of us at visakha dairy dedicate ourselves for maintaining Occupational Safety, which is basically an integral part of all our activities.
SAFETY IS ACHIEVED BY

Active participation of all persons working as well as those assisting us in our premises with the aim of reducing losses to the valuable resources of Man, Machine, Materials and tools. Adopting safe work practices, ergonomics and striving for better working conditions. Spreading the knowledge of safety needs to our vendors and associates who serve from their premises. Aiming at Zero Accidents without compromising productivity, in the interest of ourselves and the society at large. Adhering to, and surpassing to the extent possible, statutory regulations on top priority

HEALTH POLICY

We are committed to uphold safety regulations in every productive activity to protect ourselves from occupational health hazards. We will consistently strive to promote preventive health through knowledge sharing amongst ourselves, our family and in the community we live in. We will promote amongst our employees and their families the need to be healthy of body and mind. By adopting the philosophy of Prevention is better than cure in personal and professional lives, we will put forth conscious efforts to achieve the following: Healthy Individual : Productive Employee Healthy Employee : Organizations Asset Healthy Citizen : Nations Pride

Functions of various departments and managers: FUNCTIONS:

P&A BLOCK: It generally defined as personal and administration block generally looks after the employee and employee equipment. It has a block called EHI(employee state insurance) which looks after the insurance policies. CIVIL BLOCK:This department looks after the purchase of the material and the construction works and the plans for any new block. FINANCE BLOCK: this department is for the financial operations like Loaning process Fixed assests Casting

The importance of the MIS block is : Gives in and out information It is the art of the organisation Gives the over all report It gives the staticial information

This department is only related to the mangement.

It gives the actual facts

 ENGINEERING SECTION: This section takes care of the plant and its maintainance check whether there is any leakage in the pipes.

ELECTRICAL SECTION: This section looks of boilers and the supply of electricity and the conditons of the motor and they will rectify within the time.

MANUFACTURING BLOCK: This is also known as production block or production section . it produces the product and it has been sent to quality check up block QUALITY CHECK UP BLOCK: It checks the quality of the product according to the norms of ISO Marketing: Functions Development of marketing goals and strategy Conducting marketing researches Advertising, Branding, Promotion and Campaigning. Conducting customer surveys. Commissioning, understanding and acting upon market research Understanding competitors and their strategies and likely responses Developing new products Understanding an organizations strengths and weaknesses

Besides these main functions, there are other functions including focus on customers, research customers habits and needs, analyze customers reaction to advertizing, identifying influential groups in market segments, managing relationships with vendors, manage budget, track competitors activity, plan sales presentations, measuring effectiveness, develop product brands, forecast and analyze sales, developing price strategy, plan for product and package design, treat for online promotion

Product Development: Functions Conducting R&D activities and developing conceptual framework for product innovation. Planning and designing new product, packaging etc. Organizing and coordinating Product Working Committees (PWC) from the relevant departments/stakeholders in order to execute the product development process flow. Preparing business proposal and obtaining necessary approvals. Develop new products and Update existing products. Conduct initial quality test and collaborate with quality assurance team to quality tests. Production Planning and Control Department: Function Job or Task Scheduling: Preparation of time and action calendar for each order from order receiving to shipment. Material Resource Planning (Inventory): Preparation of Material requirement sheet according to sample product and buyer specification sheet. Consumption of material (fabric, thread, button, and twill tape) is calculated and estimated cost of each material Loading production: Planner defines which style to be loaded to the production line and how much quantity to be loaded. Process selection & planning: Processes needed to complete an order vary style to style. According to the order (customer) requirement PPC department select processes for the orders. Sometime extra processes are eliminated to reduce cost of production. Facility location: Where a company has multiple factories (facilities) for production and factories are set for specific product, planner need to identify which facility will be most suitable for new orders. Sometimes there may be a capacity shortage in a factory, in that case planner need to decide which facility will selected for that orders. Estimating quantity and costs of production: Planner estimate daily production (units) according to the styles work content. With the estimated production figure, production runs and manpower involvement planner also estimate production cost per pieces. Capacity planning: PPC department plays a major role during order booking. They decide (suggest) how much order they should accept according to their production capacity. Line planning: Preparing detailed line planning with daily production target for the production line.

Follow up and execution: Whatever plan is made is executed by PPC department. PPC department keeps close look whether everything is progressing according the plan. Chasing other department heads on daily basis to keep plan on track.

Warehouse Department: Functions Receiving raw materials and store finished goods; Identification and sorting of goods; Dispatching to storage; Placing in storage; Store house management; Retrieval of goods from storage; Order accumulation; Packing; shipping Record keeping. IT Department: Functions Manage the organization's hardware, software and physical communication Provide a source of guidance for technology issues for staff and associated organizations Maintain information security and availability Provide a corporate perspective on information technology initiatives Supply the guidance and infrastructure to deliver meaningful information

Engineering and Maintenance Department: Functions Maintenance of installed equipment and facilities Installations of new equipment and facilities Inspection and lubrication of existing equipment Monitoring of faults and failures using appropriate techniques Modifications of already installed equipment and facilities Management of inventory Supervision of manpower Keeping records

Purchase Department: Functions Checking of requisitions/purchase indents. Selection of suppliers for issue of enquiries. Issuing enquiries/tenders and obtaining quotations. Analyzing quotations and bids etc., and preparation of comparative statement (quotation charts). Consultation with the Indenture for selection and approval of quotations and with Accounts Officer for pre-audit. Negotiating contracts. Checking legal conditions of contracts. Follow up of purchase orders for delivery in due time Verification and passing of suppliers' bills to see that payments are made promptly. Correspondence and dealing with suppliers, carriers etc., regarding shortages, rejections etc., reported by the Stores Department. Maintenance of purchase records. Maintenance of vendor performance records/data. Keeping various Departments/Divisions informed of the progress of their indents in case of delay in obtaining supplies. Serving as an information center on the materials' knowledge i.e. their prices, source of supply, specification and other allied matters

SWOT ANALYSIS OF an organisation

Strengths:

Demand profile: Absolutely optimistic. Margins: Quite reasonable, even on packed liquid milk. Flexibility of product mix: Tremendous. With balancing equipment, you can keep on adding to your product line.

Availability of raw material: Abundant. Presently, more than 80 per cent of milk produced is flowing into the unorganized sector, which requires proper channelization.

Weaknesses:

Perishability: Pasteurization has overcome this weakness partially. UHT gives milk long life. Surely, many new processes will follow to improve milk quality and extend its shelf life.

Lack of control over yield: Theoretically, there is little control over milk yield. However, increased awareness of developments like embryo transplant, artificial insemination and properly managed animal husbandry practices, coupled with higher income to rural milk producers should automatically lead to improvement in milk yields.

Logistics of procurement: Woes of bad roads and inadequate transportation facility make milk procurement problematic. But with the overall economic improvement in India, these problems would also get solved.

Problematic distribution: Yes, all is not well with distribution. But then if ice creams can be sold virtually at every nook and corner, why cant we sell other dairy products too? Moreover, it is only a matter of time before we see the emergence of a cold chain linking the producer to the refrigerator at the consumers home!

Opportunities:
"Failure is never final, and success never ending. Dr Kurien bears out this statement perfectly. He entered the industry when there were only threats. He met failure head-on, and now he clearly is an example of never ending success! If dairy entrepreneurs are looking for opportunities in India, the following areas must be tapped:

Value addition: There is a phenomenal scope for innovations in product development, packaging and presentation. Given below are potential

areas of value addition:

o

Steps should be taken to introduce value-added products like shrikhand, ice creams, paneer, khoa, flavored milk, dairy sweets, etc. This will lead to a greater presence and flexibility in the market place along with opportunities in the field of brand building.

Addition of cultured products like yoghurt and cheese lend further strength - both in terms of utilization of resources and presence in the market place.

A lateral view opens up opportunities in milk proteins through casein, caseinates and other dietary proteins, further opening up export opportunities.

Yet another aspect can be the addition of infant foods, geriatric foods and nutritionals.

Export potential: Efforts to exploit export potential are already on. Amul is exporting to Bangladesh, Sri Lanka, Nigeria, and the Middle East. Following the new GATT treaty, opportunities will increase tremendously for the export of agri-products in general and dairy products in particular.
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Key result areas(KRAS):

In general the KRAs are: To ensure adequate FUNDING for the operations of the company, To make PAYMENTS in time to all stakeholders. To track, analyze and help to bring down COSTS. To prepare the annual BUDGET and five year PRESPECTIVE PLAN. To provide data at predetermined intervals to our staff at various points through the MANAGEMENT INFORMATION SYSTEM. To ensure that STATUTORY REQUIREMENTS are met in full. To assist colleagues at all levels to UPGRADE their soft skills.

 To find new ways to increase PROFITIBILITY. To provide support to all DIVISIONS and SUBs. To ensure customer satisfaction. FUNDING:
PAYMENTS:

Equity shares. Preference shares Debentures Bonds Term loans Short term loans Inter Corporate deposits Suppliers credit

Salaries and wages Taxes Gratuity funds Interest and principal repayments Advances Investments

THE COST: Interest Taxes Exchange fluctuation Other financial charges MANAGEMENT INFORMATION SYSTEM: Product cost Profile and cross account Cash flow Inventory BUDGETING: Creating annual Business plan. Creating monthly budgets. Updating perspective plan. STATUTORY REQUEST: Tax deduction on salaries and wages Tax deduction on payment to contractors Tax deduction on rent to land lords.

 Tax deduction on brokerage and commission Advance pay of income tax. Issue of certificates to tax deduction sources. Filling of income tax and wealth tax. Publishing quality results. UPGRADATION: Individual initiatives Company training programs. Job rotation. IMPROVE PROFITIBILITY: Cost reduction Working capital reduction SUPPORT TO DIVISIONS AND BUSINESS UNITS: Sub Business Unit wise profitability Variance analysis Coordinating business plan. CUSTOMER SATISFACTION: Review complains. Service level agreements Monthly reports from all senior managers. Analysis of complaints from customers

Significant factors for success: Favourable endowment of natural resources for grass production On-going pursuit for innovation and technological improvement by farmers, input suppliers, public research and education institutions, manufacturing, and marketing companies. Early access to guaranteed market . Farmers strong ideology towards control and ownership of downstream manufacturing and marketing activities led to vertical integration and continuous institutional and organisational changes.

Significant Factors for Success:

Visakha dairy have put-in aggressive plans by focusing on four key pillars of business:

Product Portfolio: Offering the best quality & innovative product basket at competitive prices to exceed the consumer expectations. Partners in Success: Partnering with the right kind of trade channels which can support us in reaching out to consumers in the minimum possible time while delivering on the promise of best shelf space for our brands. Processes: Putting in place the best industry practices and processes which would enable us to deliver on the brand promise. People: Attracting and retaining the best people who can bring value to the system with customer orientation (both internal as well as external), which will go long way in achieving customer delight and gaining the confidence of channel partners that would work as insulator against the competition. Others: Every single work is well organized. Quality is their first priority. Customer relationship is always given importance. Customer satisfaction is always one of their key goals. Good working environment. Infrastructure of the company is ideal for the employees working there; it facilitates and increases the efficiency of the production and manufacture. Employees are very dedicated and committed towards their profession

Product promotional measures:

goods like apparels are dependent on advertising for their market visibility and sale.

The product promotional measures has been taken care by the marketing department The marketing department recuirts a staff for attracting the consumers Adversiting on hoardings T.v. commercial ads SIZE This as per the space provided by the dealer outlet. COST The cost of signage is borne by the company.

POSTERS Posters play an important role in attracting a customer attention. There are some techniques followed foe local marketsUsage of points of sale material. Usage of outdoor media like hoarding. Exhibiting slides in cinema theatres.

Career Planning:

Our Employee Value Proposition (EVP) aims to deliver unique opportunities to our employees in terms of learning, career development, recognition and family well being. That is why our EVP is characterized as offering a 'world of opportunities'. We have robust programs at the entry level for Accountants, Engineers, MBAs, Lawyers and others. Similarly, we have a number of programs for mid-career professionals. Our philosophy is one of developing our own people and enabling them to attain growth as the Group grows. At the same time we hire experienced professionals from outside to bring in new perspectives and new energy .At Visakha dairy we believe that talent is omnipresent and all people have some talent. Identifying talent, training and developing them are the pillars of our talent management process. Identifying talent, training and developing them are the pillars of our talent management process. It enables managers to make career moves, which leverage their strengths and focus on areas of development as they prepare for leadership roles. We use a combination of developmental assignments, classroom training, coaching and participation in special project teams to enable employees to continuously learn and develop. Programs: Global manufacturing leadership program. Leadership Associate Program Leadership Program for Experienced Human Resource Leadership Program Finance Leadership Program Six Sigma

Training Measures When students join us as interns or employees, they soon realize that their work environment is as vibrant as their university. Learning never stops at the Visakha dairy. From exciting assignments to expert guidance, from customized training programs to intensive leadership programs, we provide young talent with challenging opportunities to realize their dreams and excel each day. Training Programs

Graduate Engineer trainee Programs Leadership Associate Program (LEAP) Group Internships Business Management Trainee Programs

Training Methods Class room training Webinars Video Conferencing Case Study Workshops Quiz and Games System Followed for Purchase of Materials

Following are the steps followed for purchase:

Material generally purchased are machines, spare parts, dyes and chemicals, packing materials, general items like stationery items, furniture etc., fuel, coal etc.

Purchase requisitions received from user department. Inquiry is sent to different vendors. Vendors send quotations specifying costs, discounts, time required to deliver and offers. Vendor quotations are compared and comparison report is prepared. Purchase order (PO) is then raised. Vendor send goods and goods receipt vouchers are generated. Final and physical verification of goods will be made by user departments. Then material will be approved or rejected. Rejected material is then sent back to vendor and approved material will be issued to concerned user department. Invoice verification made by finance department. Payments and C-forms will be issued as per our agreed purchase order terms.

Purchase Period: Materials are purchased as and when required.

System: SAP-ERP.

Human Resource Development Measures

You do. You get.

Competition remains central to our growth and we encourage our employees to constantly better past performances. Recognition is not far behind.

Manpower Planning

Manpower Planning which is also called as Human Resource Planning consists of putting right number of people, right kind of people at the right place, right time, doing the right things for which they are suited for the achievement of goals of the organization. Human Resource Planning has got an important place in the arena of industrialization. Human Resource Planning has to be a systems approach and is carried out in a set procedure.

The procedure is as follows: Analyzing the current manpower inventory Making future manpower forecasts Developing employment programs Design training programs

Manpower Planning is advantageous to firm in following manner:

Shortages and surpluses can be identified so that quick action can be taken wherever required. All the recruitment and selection programs are based on manpower planning. It also helps to reduce the labor cost as excess staff can be identified and thereby overstaffing can be avoided. It also helps to identify the available talents in a concern and accordingly training programs can be chalked out to develop those talents. It helps in growth and diversification of business. Through manpower planning, human resources can be readily available and they can be utilized in best manner.

It helps the organization to realize the importance of manpower management which ultimately helps in the stability of a concern

Welfare Measures To empower our people to fulfill their personal and professional dreams we offer simple, everyday conveniences that make life easier, richer and more joyful. Take a look at some of the benefits you can enjoy when you join our team: Health: Accident insurance, hospitalization insurance for self, family and dependant parents, well - equipped gymnasium, onsite doctor and a cafeteria that serves hot and nutritious food. Safety: Your safety remains our prime concern and we ensure compliance with local laws regarding safety, health and the environment for our employees and neighbouring communities. Recreation: Mediation room, yoga classes and a well - stocked library. Other: Concierge services, ATM, travel desk Scholarships: Beyond schooling, Pratibha, our scholarship scheme is open to employees' children for professional education in India and abroad. Insurance: Our death/disability in service insurance plan, Nischint, provides monetary relief to our employees' families in the event of the employees' death/permanent disability while they are still working with the Group. Recreation: Clubs, auditoriums, super markets and walking tracks

Performance Appraisal System The present system is an annual system of appraisal, with a formal mid-year review. Appraisal period is from April-march. The format is designed by the HR Department with the help of external experts. Involvement of top management is high in the overall performance appraisal system.

Purposes: Performance appraisal exercise assists in deciding promotion, transfer, salary increment and training need identification.

There are two categories of format: Below General Manager (GM) level, format differs in different divisions of the organization For GM and above, same format exists in all the divisions The format for managers below GM level is being discussed here. The present system is an on-line performance appraisal system which is operational since the year 2001.

Levels of appraisal There are three levels of appraisal- appraiser, reviewer and HR department

Criteria of appraisal The appraisal period is from April-March. An employee's capability is evaluated on two dimensions: performance & potential (measured through competencies).

There are following main sections in the on-line form: The Performance Evaluation form, display the Key Result Areas (KRAs) and the Performance Indicators. Each screen displays one KRA and the Performance Indicators for that KRA. In the box provided, appraiser needs to key in the 'Rating' and the 'Remarks' supporting the rating, before proceeding to the next KRA. The Critical Personal Attributes of the employees are evaluated next, followed by Specific Achievements of the employee, and Recommendations of appraiser

Rating Scale
Rating 1 2 3 4 Interpretation Contributor Performer High Achiever Outstanding Achiever

FINANCIAL HIGHLIGHTS OF THE ORGANISATION: The turnover of Visakha Dairy touched 583 crores during the year 2010 11 and Equity build up is 135 Crores. Powder Plant capacity 13 MT per day Capital outlay 7 Crores commissioned in May, 2011. U.H.T. Plant capacity 30,000 Liters Per Day and commend on 27-05-2011. Thereafter one 500 ml FINO is added in the year 2012. Later 2 FINO TFA1 Machines commissioned 28-06-2012. Presently on average day wise packing of all types U.H.T. Milk crossed 80,000 lts per day. Milk Pouch Filling Unit II constructed to accommodate 2.5 Lakh Liters Per Day. Fat Handling Unit II: At present 4 MTs capacity Ghee/Butter Handling and strengthened to 9 MTs. Extended Shelf Life Packing - In order to facilitate the availability of milk to the public more convenience, a specially processed milk was launched in the pouches which has a shelf life of 14 days. Visakha Dairy proudly launched such milk variant for the FIRST TIME in Indian market where as major FMCG companies are following us, the plant has a capacity of 2.5 lakhs / day.

CONCLUSION:

Doing this Organization Study in Visakha dairy pvt Ltd was one of its kinds. The experience was very good. The way each employee is dedicated towards his /her work is worth seeing. Everything is synchronized and organized. Quality is their first preference. A very friendly working atmosphere where every work is done very professionally. The factory infrastructure is well build and well maintained. The Milk and milk products production in Andhra Pradesh understanding and satisfying the needs of the people.