THE CSR PLAN PROJECT PROPOSAL

Prepared for
NDDB Board
Bihar, 800001

Prepared by
Abhinav Jayaswal
Gupta Chemicals

Bihar

November 28, 2015

Table of Contents

Executive Summary
Table of Contents
1. Introduction
2. Findings
2.1 Mega Environment
2.2 Task Environment
2.2.1 Initial Capital Requirement
2.2.2 Feasibility Factors
2.2.3 Standard Operating Procedures
2.2.4 Competition
2.2.5 Labor Supply
3. Conclusions and Recommendations
References
Appendix
Executive Summary

This study investigates whether replicating National Dairy Development Board (NDDB)
movement in the fast developing state of Bihar by Gupta Chemicals as a part of their CSR
plan is a viable option for them. Analysis of both the mega and task environment is
conducted. The information is collected from various sources: Union Nations Public
Administration Network reports, local government reports, and census data. The conclusion
drawn from the analysis is that in the present environment it would benefit our client to
implement Dairy Kiosk as an effective CSR Plan taking in account the facilities available in
Bihar and the budget available to the company. After understanding the present environment,
number of recommendations are made keeping in mind the requirements, expectations,
quality and image of the company in Bihar. Gupta Chemicals was very sincere in their
previous projects and have wholeheartedly contributed towards the society. Benefitting the
people of Bihar and making the state even more progressive is the sole aim of implementing
this project. In addition it is also emphasized in the recommendations that setting up this
project will require a number of dedicated services.

The purpose of this report is to provide preliminary information to the client about: i) the
overall viability of implementing a movement similar to NDDB in Bihar area and ii) key
issues that need to be taken into consideration to ensure the success of the plan and also that it
genuinely benefits the people of Bihar.

1. Introduction

The main objective of this project is to develop the power of mutual self-help. This CSR
initiative is based on the philosophy of Anand Model. The initiative was aimed at ending
India's milk deficit and at using co-operatives as a catalyst to transform India into a
leading milk producer. This operation went on to become a successful rural development
project that made dairying a core economic activity in the country. By the late 1990s, it
had over ten million farmer members from across 70,000 villages, in its co-operative
network. This initiative helped so many farmers in their daily lives. Through this
initiative, Gupta Chemicals want to make the people of Bihar independent and to
diminish malpractice and underpayment prevalent in the state of Bihar. This report
considers the viability of the business in broad management and marketing terms only; it
does not provide a comprehensive financial analysis of the proposed expansion.
In the investigation of these issues, two analytical concepts have been used, namely Mega
Environment and Task Environment. The Mega Environment is concerned with the
external environment in which plan needs to be executed; the Task Environment
considers conditions that plan faces in its immediate environment. The information is
collected from various sources: Union Nations Public Administration Network reports,
local government reports, and census data.
The report is divided into two main sections: a Findings section, which presents
information about both environments as they relate to a CSR initiative to promote
dairying; and a Recommendations section which provides specific suggestions for the
execution and sustainability of the proposed plan.

2. Findings
The viability of replicating and implementing a similar NDDB movement under a reputed
brand name was considered in relation to two broad areas the mega environment and the
task environment. Each of these areas is discussed below.

2.1 Mega Environment

It has been seen that even after 66 years of independence and expenditure of huge
amount of money by government, the fruits of development are yet to reach the
citizens. The main reason behind this may be the lack of co-ordination between
various departments. After doing some research in the rural areas of Bihar, it was
observed that average rural family faces many problems in their day to day lives like
deficiency of clean drinking water, sanitation facilities, electricity, skill based
education, health care facilities, social awareness to mention a few. NDDB movement
has been very successful is all the districts it is implemented. Its major objectives
have been to increase milk and milk product exports; to spread the co-operative
movement to other domestic agricultural products; and to help other developing
countries replicate the success of the dairy development program in their own
countries. So, the organization has been providing extensive support to all co-
operative unions in India to help them perform successfully. It has also been
dovetailing its activities with those of other government agencies for dairy and agro
development. NDDB has been assisting the unions in recruiting and training
personnel and offering technical support in the design and selection of dairy
equipment and construction of dairy plants. NDDB is in search of support from
corporate and business world as well.
 According to indiandairy.com Operation Flood started by NDDB has decreased the
dependence on commercial imports of milk solids. Modernization and expansion of
dairy industry activated a milk grid. A nationwide network of multi-tier producers
co-operatives, democratic in structure and professionally managed has come into
existence. Millions of small producers participate in an economic enterprise and
improve the quality of their life. Transformations in the sector are being induced by
factors like newfound interest on the part of the organized sector, new markets, easy
credit facilities, dairy friendly policies by the government, etc. Dairy farming is now
evolving from just an agrarian way of life to a professionally managed industry the
Indian dairy industry. With these positive signals, there is hope that the sector may
eventually march towards another white revolution.
The market size for milk and milk products is estimated to be Rs 3.6 lakh crores. The
organized market is growing at the annual rate of 10%. Dairy sector contributes 17%
of the countrys total expenditure on food.

2.2 Task Environment

The immediate environment in the implementation of similar NDDB project in Bihar is
also very important.
This project is an offering to the people of Bihar in the rural areas to earn their livelihood
through dairying. To give a brief idea, the concept of this movement is developing a
sense of mutual self-help and promoting the same by a delivery system. A similar model
had been implemented previously in various states before Bihar.
The main benefits offered are:
Policy of cheap milk
Contribution towards national health building
Substantial employment opportunities
Self-employment options to women folk
Economic emancipation
Elimination of intermediaries
Developing confidence
 2.2.1 Initial Capital requirement

Initially company would require a system setup that is worth $2000 i.e. Rs 1.3 lacs
approximately. In addition to this, it would need to employ 5 people per kiosk. Their salaries
would be Rs. 1 lac per month. All other maintenance would be of Rs 50,000. So the total
initial investment per kiosk is Rs 2,80,000.

Company is planning to start this system in ten villages of Bihar. So their initial capital
requirement is of Rs 28 lacs.

2.2.2 Feasibility Factors

Operation Flood was not conceived as an all-purpose poverty eradicating program. It

cannot be, because it focuses on a single productive activity, dairying, while the ranks of
the rural poor include many different categories of the disenfranchised; the old, the
infirm, tribal, the landless, small farmers, artisans, and so forth. Nonetheless, it is notable
that the increased income from milk under OF encouraged by process of change in other
activities of the milk producing households and contributed to their overall socio-
economic development.

It is a part of CSR activity taken by Gupta chemicals. No other company is currently is in

talks with the NDDB board to implement their project. Company is implementing this
project in 10 villages of Bihar. So if some other company also wants to take this as a CSR
initiative, it would be even more beneficial for people of Bihar.

This is essentially a long term CSR plan driven by a social philosophy of helping and
improving living standards of people with a vision and mission to evolve as a socially
responsible company. Expertise in research, financial planning, effective training, superior
support infrastructure, operations control along with smart marketing will be the key factors
to success.
2.2.3 Operating Procedures
There is a need for Village based milk procurement systems for weighing, testing
quality of milk received and making payment to milk producers. NDDBs objective is
to increase the productivity of milch animals and thereby increase milk production
and to help provide rural milk producers with greater access to the organized milk-
processing sector.
 2.2.4 Competition
Implementing a project approved by NDDB is a part of CSR plan. The project
sustainability is the prime thing for the company. As it is a step by the company,
for the society, there is no competition involved.

2.2.5 Labor Supply

As per the approved Sub-project plan, the Milk Union shall ensure that the officer
identified as Project Coordinator remains continuously responsible for overall
coordination of sub project implementation, as also resolving issues related to the
Project. The Milk Union shall ensure that essential manpower resources as listed
in the approved SPP are deployed either from its existing pool or if essential
through recruitment for all field activities. The program will be managed,
monitored and reviewed by constituting a VBMPS Management Committee.
Project Management Cell shall comprise of
Project Coordinator, Head of the PMC
Designated Grievance Redressal Officer (GRO)
Designated E&S Officer
Area Officers
MIS / IT Officer
Finance Officer
Purchase Officer

3. Conclusions and Recommendations

The main question considered in this study was whether the implementation of NDDB like
project for dairy development in Bihar area is a viable option for the client.
Cooperative is the middle way between the private and public sectors and has a distinct role
to play in the economic development of the country through its emphasis on self-help.
Cooperation is an important tool towards the decentralization of economic power in the
country. Based on the preceding analysis, both of the mega and task environments, the
conclusion drawn is that such an expansion of the business is likely to be a sound investment
and for a very good cause. Cooperatives are essentially based on moral or ethical values.
Cooperatives have to constantly work for the moral uplift of the society as a whole.
Cooperative education includes education in Planned Parenthood family welfare. Cooperative
policies have been oriented towards the poor. The Harijan, the caste Hindu, the Muslim and
the Christian stood in the same queue to sell their milk. Distinctions disappeared in the queue.
They saw the milk given by them was poured in the same can. The cooperatives help in the
exchange of milk from the rural producers for cash of the urban consumers.
The study also considered a range of implantation and management issues that would need to
be considered to ensure the success of the plan. Accordingly, the following recommendations
are made:
Convince lower class people to become part of milk societies.
Tie ups with NGOs and Civil Societies to make the project even bigger and more
successful.
Match the input-output ratio of other programs started by NDDB.

References
1. Empowering Dairy Farmers: A Portal and Dairy Information and Services Kiosk Case
Study
2. Prabakaran .M Role of CSR in Social Development: A Case of Milk Cooperatives.
3. National Dairy Development Board www.nddb.org
Appendix