Submitted By: Submitted to:

Pratik Bhatt Internal Guide:

MBA:A-06 Prof. Pankaj Patel
GRIMS,Vapi External Guide:
Mr. Manish Bhatt

GIDC Rajju Shroff ROFEL

Institute of Management Studies
ACADEMIC YEAR – 2006-07

1
 CERTIFICATE

This is to certify that Mr. PRATIK BHATT has satisfactorily completed the
project work entitled, “Retail Loans and Deposit Services”. Based on the
declaration made by the candidate and my association as a guide for carrying out
this work, I recommended this project report for evaluation as a part of the MBA
programme of Veer Narmad South Gujarat University in partial fulfillment of
requirement for the completion of “Practical Studies”.

Project Guide Date:

Prof. Pankaj Patel

2
 DECLARATION

I, the undersigned, Pratik Bhatt, student of M.B.A, hereby declare that the
project work presented in this report on “To check out consumer mindset after
changing the brand name of Sumul” and organization overview at SUMUL
DAIRY is my own work and submitted by me to “GIDC RAJJU SHROFF
ROFEL INSTITUTE OF MANAGEMENT STUDIES”, Vapi towards the partial
fulfillment of the M.B.A programe.

This project is entirely outcome of my own efforts and the report prepared
there is based on the knowledge and the work done by me in the company during
the project work.

I further declare that to the best of my knowledge, to any other university

or Institute for any examination, this report is not submitted by anyone else.

Date: Pratik Bhatt

Prof. Pankaj Patel

3
 ACKNOWLEDGEMENT

I feel great pleasure to present this summer training report on “To check
out consumer mindset after changing the brand name of sumul” and organization
overview at SUMUL DAIRY, Surat.

Being a student of M.B.A it is my pleasure to have and opportunity to

present this Industrial Summer Training report at “GIDC RAJJU SHROFF
ROFEL INSTITUTE OF MANAGEMENT STUDIES”

I thank SUMUL DAIRY for giving me an opportunity to complete my

project. I wish to give grateful acknowledgements to my project guide Mr.
Manish Bhatt (marketing executive) and all the staff members of SUMUL for
giving me invaluable information and guidance on the necessary the theoretical
aspect and methodology for handling my work, without valuable guidance this
project report can not be made possible.

A special word of thanks to my director as this type of analysis work is the

core function of management studies. My sincere thanks are also to my project
guide Prof. Pankaj Patel for his guidance and technique about report writing that
have been a key factor in the successful completion of this project.

Last but not the least I acknowledge the support and encouragement of my
parents, teacher and friends.

4
 PREFACE

World is becoming a “Global Village”. Today India has become a

“globalized country”. The process of globalization has very highly affected.
Corporate world of both, India and exotic corporate world means today’s
neoteric business world. This corporate world plays a decisive role in
globalization.

This corporate world is now becoming more and more competitive.

Regarding this competition business houses need more professionalized people
for their managerial work. Highly professionalized people come from business
school. Business school offers training for all business aspects. So from this
angle our Veer Narmad South Gujarat University has granted M.B.A. program.

Theoretical knowledge is not enough. After study student has to go

practical world. At that time they have difficulty in practical works. This M.B.A
program provides an opportunity for this type of practical knowledge.

5
 Index
No Contents Page

Certificate 2
Certificate 3
Declaration 4
Acknowledgement 5
Preface 6
Index 7

Chapter – 1 INTRODUCTION TO SUMUL

1.1 Introduction 11
1.2 History 13
1.3 Milestone of Sumul Dairy 15
1.4 SUMUL vision statement 16
1.5 Objective of SUMUL 17
1.6 Strategic focus of SUMUL 17
1.7 Awards 18
1.8 Work area of SUMUL 19
1.9 Unit of Sumul And Their Capacity 20
1.10 Expansion & Diversification 21

2 Chapter - 2 INTRODUCTIONS TO SUMUL PRODUCTS

2.1 Product mix 25

2.2 Growth path of sumul products 26
2.3 An overview of sumul products & sales 27
2.4 Major customer 40

3 Chapter – 3 ORGANIZATION STRUCTURE

3.1 Organizational Structure 42

3.2 Co-operative Dairy Structure 43
3.3 Registered office 45
3.4 List of departments 46

6
4 Chapter – 4 HR DEPARTMENT

4.1 Hierarchy of HR Department 48

4.2 HR Objective 50
4.3 Role of HR in Sumul 50
4.4 HR Activities 51
4.5mployee Records 53
4.6Recruitment & Selection Process 55
4.7Training & Development System 57
4.8Performance appraisal System 57
4.9 Promotion & Transfer Policy 58
4.10Wages & Salary Structure 58

5 Chapter – 5 PRODUCTION DEPARTMENTS

5.1 Introduction 60
5.2 Hierarchy of Production Department 61
5.3 Production Plan 62
5.4 Activities of Production Department 62
5.5 Production Process 63
5.6 Micro Motion Studies 64
5.7 Support Services 64
5.8 Materials Handling Equipment 65

6 Chapter – 6 QUALIY CONTOL DEPARTMENT

6.1 Types of instrument used 67

6.2 Parameters tested 67
6.3 Quality certificates 68
6.4 Quality and Organizational Focus 72

7 Chapter –7 MARKETING DEPARTMENT

7.1 Hierarchy of Marketing Department 75

7.2 Objectives 76
7.3 Sumul’s Marketing System 77
7.4 Pricing Policy 78
7.5 Channel of Distribution 79
7.6 List of Costumer 81
7.7 Promotion Policy 82
7.8 System of Approaching to the Customer 83
7.9 Customer Satisfaction 84

7
 7.10 Records of Customer Base 85

8 Chapter –8 FINANCE DEPARTMENT

8.1 Hierarchy 87
8.2 Objectives 88
8.3 Source of Finance 89
8.4 Activities 90
8.5 Cost System 91
8.6 Payment Process 92
8.7 Business & Financial position 93
8.8 Treasury Process 93

Chapter – 9 PURCHASE & STORES DEPARTMENT

9.1Organization 95
9.2 Activities of purchase department 95
9.3 Activities of stores department 96
9.4 Stores Procedure 97
9.5Inventory 97
9.6Tranportation 98

SPECIALIZATION PROJECT

1.1 Introduction 101

1.2 Objective 102
1.3 Research methodology 103
1.4 Business unit strategic planning process 104
1.5 Business mission 105
1.6 Macro & Micro Environmental factors 105
1.7 SWOT analysis of Competitors 109
1.8 SWOT analysis of Sumul 111
1.9 Goal Formulation 115
1.10 Strategic Formulation 116
1.11 Program Formulation 117
1.12 Marketing Feasibility 118
1.13 Technical Feasibility 121
1.14 Financial Feasibility 125
1.15 Recommendations 127

 CONCLUSION:
128

8
 BIBLIOGRAPHY: 129

9
 “Introduction”

“SUMUL”
(Surat District Co-operative Milk Producer’s Union LTD.)

CHAPTER CONTENTS

1.1Introduction…………
1.2History………..
1.3Glimpse of Sumul………..
1.4Milestone of Sumul Dairy………….
1.5Sumul’s vision statement………….
1.6Objectives of sumul………..
1.7Strategic focus of sumul………….
1.8Awards………….
1.9Work area of sumul………….
1.10 Unit of Sumul and Their Capacity………..
1.11 Expansion and diversification…………..

10
1.1 Introduction

Sumul or Surat Milk Union Limited, which is now renamed as The Surat
District Co-operative Milk Producer’s Union Ltd, is one among the 12 district
unions which acts as manufacturing units of dairy products for Gujarat Co-
operative Milk Marketing Federation Limited, the marketers of Amul and Dhara
brand of products.

The Sumul district co-operative milk producer’s union ltd (SUMUL

Dairy) is a co-operative endeavor committed to help marginal farmers and down
trodden tribal to lead to a healthy life and better standard of living through
scientific animal husbandry practices. Today’s Sumul enjoys the pride to serve
milk and milk products to populous Surat city and surrounding towns of it.

Sumul is holding strong brand equity in surat district and command more
than 70% of the liquid milk in surat city, to make the distribute system fast and
the delivered milk in time they have as many as 81 milk transportation routes and
1531 agents (1386 regular and 145 full time)

The area of operation of sumul is the entire district of surat. The present
milk procurement of 160.929,736 liters of milk annually makes it the third
largest union in the state after the AMUL and Mahesana dairy. The present
market of Surat for liquid milk is around 4.5 lack liters per day. This has
necessary active development of “by product” market. Products so far introduced
are paneer, ghee, flavored milk, sweet, shrikhand, lassi, butter milk etc..

Under sumul’s activities, Surat district is now firmly established as a milk

shed and is growing from strength to strength.

11
Glimpse of Sumul

1. Date of Registration 22nd August, 1951

2. Date of commissioning of Pasteurization Dairy
March, 1968
Plant
3. Dairy Plant capacity at the time of commissioning 50,000 ltrs. per day
4. Present capacity of Dairy Plant 5,00,000 ltrs. per day
5. Milk Powder Drying capacity 12.5 MTs. per day
6. Milk Chilling Plants along with capacity of Milk
Chilling Bajipura 3,00,000 ltrs. per day
Uchchal 1,00,000 ltrs. per day
Navi Pardi 2,00,000 ltrs. per day
Chasvad 30,000 ltrs. per day
Dediapada 3 0,000 ltrs. per day
7. No. of Milk Producers Co-op. 956
8. Total membership and Nos. of Primary Milk
Producers'
Co.operatives. : Society Membership
a) Tribals 898 1,71,502
b) Non-Tribals 79 32,703
9. Milk Co.operatives Managed by women 81
10. No. of Mobile Veterinary Clinics 22
11. No. of Veterinarians 40
12. No. of A.I. Centres 130
13. Cattle feed Mixing Plant capacity 300 Mts. per day
14. : 45000 packets for
Mineral Mixture Plant : Production and sale
Milk Producers

12
1.2 History
In the year 1939 Sardar Vallabhbhai Patel went and met the farmers of
Anand and told them that for the trade of milk the DAIRY was necessary. At that
time person named Tribhuvandas Patel came forward to take the leadership.
During that time there was only one dairy. "POLSUN DAIRY", which belong to
British and them use to give very less prices for milk to the Indian Milkmen. In
order to support the Indian farmer's "Amul Dairy"' was established in the year
1946. Dr. Kurien was appointed at this dairy. Dr. Kurien along with
Tribhuvandas Patel took the leadership. India becomes independent in the year
1947. In the meantime AMUL DAIRY got order from the WHO to produce milk
powder. At that time Dr. Kurien & Dr. Dalaya found the technique of producing
milk powder from buffalo milk. After looking at this Lal Bahadur Shastri took
the visit of Ajampur village & promised them to provide with more money for
the systematic development of the dairy industry. For the proper development of
the dairy industry NDDB was established at ANAND.

During that historical period in the year 1948, let Shri jagjivandas R. Patel
(popularly known as "DASKAKA') brought farmers of Olpad Talukas under the
ambit of the co-operatives society. The society was registered on 1-8-1949 as
Takoyma limited. Thus, come into foundation of the super structure of the Surat
district cooperatives milk producers union limited (SUMUL) Surat.

Hygienic and pure milk was almost unknown in the market. In fact
unbridled adulteration of milk was practiced by these traders to meet the growing
demand of milk in the city. To salvage the poor producers from the clutches of
these Private Traders, Organisation and integration of procurement, processing
and marketing of milk and milk products by the producers themselves on a sound
co.operative line was essential; this would also ensure elimination of middlemen,
equitable distribution of benefits to Rural Milk Producers and indirectly to urban
milk consumers as well.

Hence, the Surat District Co.operative Milk Producers' Union Ltd.,

SUMUL is trade name and literally meaning sound price, came into existence on
August 22, 1951. A real break through in SUMUL came in 1966, with the
approval of dairy plant project of Rs.77.47 lakhs under the swadeshi programme.
The state government also provided Rs.74.28 lakhs in the form of subsidy loan
and share capital. Dr. Kurien designed the dairy plant to cope up with the
targeted increase in milk procurement in the succeeding years. The former
commissioning of the pasteurization plant on March 17, 1968 was the turning

13
point for SUMUL. A 50 TLPD dairy plant was established in 1968 & there after
marketing of (Pasteurized milk in bottle was started marketing of milk in
polythin was started in 1978).

For the development of dairy industry NDDB started number of flood

operation. These flood operations include various important aspects like
transportation machinery, procurement of milk at low cost, awareness about
human rights & responsibility and high productivity at low cost. By these great
efforts, in the year 1998-99, 72 million tone of milk was produced in India and
India become the first milk producing country, which is more than 68 million in
U.S.A. So it was called “white revolution

1.4 Milestone of Sumul Dairy

14
15
 1.5 Sumul’s Vision Statement

“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH

COMMITMENT TO CONSUMER DELIGHT AND RESPECT FOR ALL. WE
BELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGH
TEAMWORK, TRUST & EXCELLENCE WITHOUT COMPROMISING OUR
HONESTY AND INTEGRITY”

It is quite obvious from the mission statement of the Sumul; the

organization is committed to customer satisfaction and believes in providing the
highest quality of product to them. Infect, for ensuring highest quality product, it
has already put into practice TPM and TQM tools in the organization besides
many Quality Circle (QC) and Small Group Activity (SGA) operating in the
organization to achieve the vision and mission.

SUMUL VISION
Vision is a dream created in our working hours of the organization. It can
be described as a living picture of future. It is inspired by the values that we
cherish

Year 1999 2005-06 2006-07

RS. 512 Corers RS. 607
Turnover RS. 290 Crores
Corers
5,61,977 8,50,000 Liters 7,86,090 Liters
Milk Procurement
Liters
Milk Sale 4,32,811 Liters 5,59,006 Liters 5,95,596 Liters
International International
International
Quality std. ISO 9000 std. ISO 9000
Std
HAACCP HAACCP
Minimum Minimum
Production cost
Production cost Production cost
Consumers Consumers
Distribution
oriented, Quick oriented, Quick
system
and effective and effective

16
1.6 Objectives of Sumul

The Sumul Dairy was established with the following objectives :

To Understand And Meet Customer Needs.
To Develop Competency of Employees For Continual Improvement of Their
Performance and Effectiveness
To Demonstrate Continual Improvement of Process Based on Objective
To Review Food Safety and Quality Management System for improvement
To Apply Scientific Innovations and State of Art Technology.
To provide guaranteed remunerative milk market round the year for surplus
milk.
To provide maximum return to producers
To Provide good quality Milk and Milk Product to consumers
To increase milk productivity at most economic rate by providing technical
input services to the producers.
The Sumul Dairy shall provide proper Nutrition and Good Health to its
customers in addition to achieving customer delight.

1.7 Strategic focus of SUMUL

 Co-operative Focus : Village level development, Clean Milk Production &

Veterinary Services

 Customer & market focus : Relationship, Awareness & Product

availability as per their need and time competitors Watch, Own agents
relationship, market research

 Quality Focus : Continuous Improvement in Quality defined according to

Customers

 Organization focus : Think globally and act locally

17
1.8 Awards
1988-89: National Productivity Award By National Productivity Council, New
Delhi

1989-90: Sardar Patel Saksharta Award for the efforts made to Tackle illiteracy

1990-91: National Productivity Award By National

Productivity Council, New Delhi

1992-93: Jamnalal Bajaj Fair Practice Award

1998-99: Certificate of merit from National Productivity Council

1999-00: Appreciation Award by Quality Circle Forum of India, Baroda

Chapter; Total Productivity maintenance Award by the Ahemdabad
Management Association

2000-01: Quality Excellence Award to the Managing

Director, Sumul Dairy by Surat Management
: Association jamnalal Bajaj Fair Practice Merit Certificate

2001-02: Birla Cellulosic Award for Small Group Activity

2001-02: IMC Ramkrishna Bajaj National Certificate 2002

2002-03: IMC Ramkrishna Bajaj National Certificate 2002

2003-04: Enfuse National Award for energy efficiency excellence

Chennai
: Best organization of the district by surat jilla sahakari
sangh, surat
: Best garden of the company of surat city by SMC Surat

2003-04: CSI - TCS Award for best IT - Usage

Intelligent Enterprise Award

2004-05: Best of the best for Kaizen presentation by IITPM

2004-05: CIO-100 Award for IT &Best business Executive

18
1.9 Work Area of SUMUL

Main Dairy Plant Cilling Centre

km distance from surat

Taluka/ Tahsil Name Cattle Feed Factory

SUMUL dairy is located near railway station road in Surat. It covers

15,000 – acre land. Sumul provides milk collection facilities at the producer's
door in each village co.operative wherefrom milk is speedily, efficiently and
economically transported twice daily (both in the morning and evening) to its
Dairy Plant, Chilling Centres for processing and marketing currently 81 Milk
Routes are playing, keeping the criteria of optimum coverage of marketable
surplus, required distance, safe time limit and minimum overlapping between the
routes on economical grounds

Since the milk procurement system has been extended far and wide in the
entire district. Sumul have five chilling center at Bajipura, Uchchal, Navi Pardi,
Chaved and Dediapada site at a distance of 50,105,25,110,146 km respectively
from Surat city. The chilled is then transferred to the mail plant at Surat railway
station road.

19
1.10 Unit of SUMUL & Their Capacity

No. Chilling Center Establishment Capacity in LPD Distance from

Surat (km )
1 SUMUL 1951 500000 0
DAIRY
2 Bajipura 1975 300000 50
Chilling
Centre
3 Uchchhal 1982 100000 105
Chilling Centre
4 Navi Pardi 1996 200000 25
Chilling Centre
5 Sumuldan 1970 300 mt/day 20
Factory

These 5 chilling center have provided have provided equal opportunities

of milk marketing to the distantly inhabited tribal milk producers, which aids the
economy of their milk production enterprise or else they would have been
obliged to dispose of their milk to the middlemen at very low price. These
chilling centers were established with a view to improve the quality of milk and
ease pressure at its headquarters. A large plot of area was bought while
establishing Navi Pardi Chilling Center keeping in mind to shift the dairy plant
from city, if the need arises in future.

20
1.11 Expansion & Diversifacion
The formal commencing of the pasteurization plant was a turning point in
the life of SUMUL. The plant was inaugurated by Morarjee Desai. At that time
the capacity of pasteurization of milk was 50,000 ltr/day.

The expansion of Dairy plant in accordance with the NDDB was done by the
Dr. V. Kurian on 21st April, 1979. The capacity was increased to 1,00,000 ltr/day.

In the second stage of expansion, the capacity was increased to

2,00,000 ltr/day during the year 1958 with the help of NDDB and Gujarat Co-
Op. Milk Marketing Federation Ltd. They give financial as well as technical
assistance.

Due to increase of the population of Surat city their felt a need to increased
the capacity of milk pasteurization. In the 3rd stage of operation flood capacity
was increased to 4,00,000 ltr/day. Today the plant is working with the capacity of
7,50,000 ltr/day.

They have also built milk chilling center at Bajipura, Uchhal, Navi Pardi,
and Nizer.

Annual Turnover (Rest. in lakhs) 1999-00 to 2006-07

700
600
500
400
300
200
100
0
99- 2000- 2001- 2002- 2003- 2004- 2005- 2006-
2000 01 02 03 04 05 06 07

From the study of the above diagram, we can see that Sumul has made a
continuous progress in their profit making figures. The present profit of the firm
is 48 crores more than the profit of the previous year.

21
 “Products of
Sumul”

PRODUCTS O

CHAPTER CONTENTS

2.1 Product mix………..

2.2 Growth path of Sumul product…………
2.3 An overview of Sumul’s products & sales………..
2.4 Major customers……….

22
23
• INTRODUCTION OF THE FMCG INDUSTRY:

Introduction

Fast moving consumer goods (FMCG) industry has a long history.

However, the Indian FMCG industry began to take shape only during the last
fifty-odd years. This sector can drive growth, enhance quality of life, create jobs
and support penetration of technology.

To date, the Indian FMCG industry continues to suffer from a definitional

dilemma. In fact, the industry is yet to crystallize in terms of definition and
market size, among others. The FMCG sector is a cornerstone of the Indian
economy.

After all, it is an industry which touches every aspect of human life, from
looks to hygiene to palate. Perhaps, defining an industry whose scope is so vast is
not easy. The government too is at crossroads not knowing how and where to slot
the Indian FMCG industry. And unsurprisingly, the manner in which it has
treated an industry which holds tremendous promise as producer of goods that
pervade everyday life has been only callous. The facts that the FMCG industry is
a noteworthy employer and a major tax-payer are being ignored.

The FMCG companies are poised for improved bottom-line this year. The
better news is: the growth is here to stay. The Rs 48,000-crore Indian FMCG
sector is expected to register growth ranging between 5% and 15% this year as
compared to 6% growth last last. Moreover, they also expect the size of the
market to double in 2010. Others like HLL’s chairman, MS Banga, expect it to
become Rs 100,000 crore over the next few years.

The industry is excited about a burgeoning rural population whose

incomes are rising and which is willing to spend on goods designed to improve
lifestyle.

The Indian FMCG industry has a promising future to look forward to. In
terms of growth potential, the Indian market is a great horse to bet on. With a
little help and understanding from the government, the Indian FMCG industry
can realize its true potential & with favorable 2004 budget, it is poised to grow
even higher. So far, it has been a chequered graph for the MNCs operating in the
Indian FMCG industry. Domestic companies are only beginning to make their
presence felt in the industry. It has taken tremendous consumer insight and
market savvy ness for the FMCG players to reach where they are today. But, the
journey has only begun.

24
 A vibrant FMCG sector can boost agricultural produce and exports. It can
contribute to the exchequer significantly, disperse technology across the value
chain and usher in product innovations. These innovations can improve Indian
health standards.

Over the past few years, faced with stagnating urban sales, the FMCG
behemoth has constantly been looking at ways to increase rural penetration of a
vast range of its products.

25
2.1 Product Mix of SUMUL Dairy
Products Mix: “the set of all products and items that a particular seller offers
for sales to buyer.”

Liquid Milk Milk Products Self

Developed
Products
Dahi
Whole Milk
4
1 Paneer
2 White Butter
Business
Mission
Pasteurized
Implementati Flavour Milk
Standard Milk
on Ghee
Program
Formulation
Strategy Sweets
formulation Butter Milk
Goal
Formulation
External Shrikhand
Environment
Opportunitie Skimmed Milk
sSkimmed
& Threats Powder
Milk
Internal Sumul Sugar
Environment
Swot
Analysis
Cow Milk
Homogenized Sumul Tea
Toned Milk

26

Milk Products
2.2 Growth Path of Sumul Products

Products Year
Milk distribution in bottle 3-5-1968
Establishing member of GCMMF 9-7-1973
Milk distribution in polybag 7-12-1978
Butter milk distribution in polybag 1-6-1987
Whole milk (SUMUL YA) in bulk 1987-88
Whole milk (SUMUL YA) in 500 ml 1991
Homogenized toned milk in 500 ml 1994
Homogenized toned milk in 200 ml 1995
Flavor milk 1993
Paneer 1994
Sweets 1994
Shrikhand 1995
Masala Chaas 15-8-1999
Flavored milk in 200 ml pouch 15-8-1999
Pasteurized milk in 5 liter pack 1998
Masala chass, methi chass 2000
Pizza & Ice-cream 2001
Rasgulla, Gulab Jamun,Sugar & Cow milk 2002
Tea 2003
Glabletop Packing for Milk (Plane & 2004
Flavoured)
Buttermilk in ESL Packing 2005
Cold Coco 2005

2.3 An Overview of SUMUL Product

27
Milk Products :

Milk is the main product that is produced by the sumul. Milk acts as a raw
material for the other products of sumul like curd, butter milk, paneer, etc. Sumul
processes variety of milks such as whole milk, toned milk, cow milk, etc because
the demands of milk are different from customer to customer sumul tries to
fulfill all the demands, e.g. people who want ‘Malai’ purchases whole milk
standardize milk is used for tea.

A white or yellowish fluid secreted by the mammary gland of animals. It

consists of emulsion of fat in water with casein and other proteins, milk sugar
and inorganic salts. The solids other that fat include protein, carbohydrates,
water-soluble, vitamins and minerals.

MILK

FAT SNF

VITAMIN PROTEIN
A MINERALS
D IRON
E CALSIUM
K LECTORS

According to the prevention of food adulteration rules 1995,the percentage

of milk, fat and SNF in different classes and designation of milk specified
respectively are as follow: Buffalo milk (5%-6% and 9%), cow milk (3%-4% and
8.5%) recombined milk (3% and 8.5%) double toned milk (1.5%-9%) and
skimmed milk (not more than 0.5% and 8.7%) the fat percentage for the milk of
Cow and Buffalo varies from state to state and is detailed is DFA rules.

28
Types Of Milk:

Name FAT (%) SNF (%)

Whole Milk 6 9
Toned Milk 3 9
Cow Milk 3.5 8.8
Skim Milk 0.07 9.3
Standardize Milk 4.5 9
Buffalo Milk 5.5 9
Sumulya 6.2 9.1

29
Pasteurized standardized milk:

AMUL GOLD MILK AMUL SHAKTI MILK

SUMUL COW MILK

AMUL TAAZA MILK

Name of Raw Material or Ingredient:

1. Raw Milk
2. Skim milk Powder
3. Pasteurize white Butter
4. Pasteurize Skim Milk
5. Pasteurize Cream
6. LDPE Film

30
Pure Ghee :

A Product obtained from milk, cream or butter from various animal

species by means of processes, which result in the total removal of moisture and
SNF contents, with an developed physical structure. Clarified butter fat with a
strong flavor is prepared by heating makkhan.

Name of Raw Material or Ingredient:

1. Pasteurize White Butter/White Butter

2. Sour Butter
3. Hd:Ld:Hd
4. 3 layer Polyethylene Bag
5. Tin (Lacquered) 15kg size
6. 1kg/2kg Size With Corrugated Box

Name of Raw Material or Ingredient:

1 Pasteurized Skimmed Milk

2 LOPE film
3 Kraft Paper Bag

31
Panner

Milk is heating to boiling temperature and limejuice, citric acid, or sour

whey. Paneer contain 70% moisture. The whole milk paneer should contain 50%,
milk fat on dry matter basic. In skimmed milk paneer the fat on dry matter basic
should not exceed 13%.

Name of Raw Material or Ingredient :

1 Pasteurized Standardized Mik

2 Citric Acid
3 Common Salt
4 Moralized Polyester Bag
5 Pasteurized Chilled Water

Flavored Milk :
Milk standardized to a certain fat percentage to which some flavor such as
chocolate and fruit syrup is added.

Name of Raw Material or Ingredient :

1 Homogenized Pasteurize Toned Milk

2 Sugar
3 Flavor
4 Color
5 Glass Bottle
6 Crown Cork

32
Buttermilk :

By product obtained after the removal of butter or cream from crud by

churning or otherwise also known as chaas.

Name of Raw Material or Ingredient:

1 Pasteurize Skim Milk

2 Skim Milk Powder
3 Batch Starter
4 Water

White Butter:

Name of Raw Material or Ingredient:

1 Pasteurize Cream
2 Corrugated Box
3 HM-HDPE Sheet
4 Pasteurized Chilled Water
5
SHRIKHAND

Kesar Dry Fruit Shrikhand

A milk based sweets male from concentrated dahi with a sweet and sour
taste. It is a semi-soft whole milk product prepared from dahi and resembles
sweetened quark. Dahi is drained of its whey by hanging it in a cloth from 4 to 6
hours to producing a solid mass called chakka or maska. The resultant maska is
mixed with the required sugar, condiments and flavor.

33
Name of Raw Material or Ingredient:

1 Pasteurize Whole Milk

2 Pasteurize Skim Milk
3 Surar
4 Saffrom (kesar)
5 Nuts (Kaju, Badam, Pista etc)
6 Poly-Propylene Cups
7 Sealing Foil
8 Corrugated Box

Elaichi Shrikhand

Name of Raw Material or Ingredient:

1 Chakka
2 Sugar
3 Elaichi (Cardamom)

Kaju Mango D’Light Shrikhand

Name of Raw Material or Ingredient:

1 Chakka
2 Sugar
3 Mango

34
 SWEETS
Kesar Peda

Name of Raw Material or Ingredient:

1 Pasteurize Milk (Sumulya)

2 Sugar
3 Saffrom (kesar) Powder
4 Cardamom (Elaichi)
5 Nuts (Kaju, Badam, Pista etc)
6 Paper Box
7 Oxygen Scavenger Poly Bag

Elaichi Peda :

Name of Raw Material or Ingredient:

1 Milk
2 Cardamom
3 Sugar

MalaiPuri :

Name of Raw Material or Ingredient:

1 Pasteurize Milk (Sumulya)

2 Sugar
3 Ghee
4 Cardamom (Elaichi)
5 Nuts (Kaju, Badam, Pista etc)
6 Paper Box
7 Oxygen Scavenger Poly Bag

35
 Other Products :

Khawa :
A product obtains from Cow, Buffalo or mixed milk by heat desiccation of
milk to 65-50% solid in an open pan. It is also called as khawa or mava.

Tea :

36
 2.4 Major Customers :

The major customer of the company is the local market and other dealers
in different parts of Gujarat state. And it has a major dealer in most of the cities.

Distributors

SR. Code Distributors Location Telephone

1 4001 Chandrakantbhai Varachha 9824187724
Gheewala
2 4005 Kamleshbhai Patel Ukai 02624-233079
3 4011 Gopi Agency Sachin 2890493/ 2890023
4 4012 Bhagvati Maisuriya Kim 02621-230979
5 4014 Nitaben shah Kadod 246998
6 4015 Patel Bhailal Rander 2484350
7 4016 Gurukrupa Traders Olpad 02621-221225
8 4020 Aashirwad Agency Bardoli 02622-226475
9 4021 Patel Ambalal Navsari 2482085
10 4022 Kikiben Patel Dumas ---
11 4024 Hashmukhbhai Bedkuvadur 02626-231251
Mayavanshi
12 4028 Ambika Bakery Udhana 2678518
13 4031 Puja Agency Salabatpura 2616715
14 4047 Jagdamba Distributors Chalthan 02622-271446
15 4125 Sunandaben Patil Navapur ---
16 4126 Super Sles Corporation --- ---
17 4114 Yogeshbhai Desai Katargam 9885390086
18 4128 Ishwarbhai Rambhai --- ----
Bari

37
 “Organization
Structure”

CHAPTER CONTENTS

1.1Structure of Organization……….
1.2 Co-operative Dairy Structure………
1.3Registered Office………
1.4 List of departments………

3.1 Organizational Structure :

38
3.2 Co-operative Dairy Structure

39
 The Co-operative Act was passed in 1961.The co-operative rules under the
Gujarat State Co-operative Act in 1965. The whole system is as follows:

NCDFI (National Co-operative Dairy Federation of India Ltd.)

|
GCMMF (Gujarat Co-operative Milk Marketing Federation Ltd.)
|
UNIONS (Here SUMUL, Surat)
|
Primary Units (Here DCS)
|
Individual Producer (e.g. the farmer who supplied milk to the DCS)

NCDFI is the national level Dairy Federation of India, with its HQ at Anand,
Gujarat. This controls the vital aspects of National level marketing, say the
supplies of milk and milk by-products to the Defense Forces, etc. It co-ordinates
the dairy co-operative activities across the country.

The State level Federation, namely GCMMF has the basic purpose of
coordinating the various state level unions. Besides providing the technical help
and requirements of the Unions, they also help in their marketing efforts. Also
they act as the liaison between the state Unions and NCDFI.

BOARD OF DIRECTORS

The SUMUL Dairy’s Board of Management (18 consist of the following

personnel):

• 14 Directors representing the 14 Talukas of Surat District

• MD (Ex officio member and secretary)
• Nominee from GCMMF
• Nominee from NDDB
• Nominee from the Registrar of Co-operative Societies (RoC)

Mr. Jayesh H. Desai is presently the Managing Director of Sumul.

Conditions for Directors to represent their Taluka:

40
 The talukas has to have supplied minimum 5 lakh liters of milk in the
previous financial year. The Board member should be a member of the
rural co-operative society (DCS) and he must have poured a minimum of
500liter milk over a period of 180 days (i.e. active milk poured) during the
financial year.

Sumul consist of 14 board of directors one each of 14 talukas of Surat

district and they from themselves elect the chairman. The total numbers of
employees are about 1100 besides the contract workers.

BANKERS

The Surat District Co-op Bank Ltd. Sarvoday Sahkari Bank Ltd., Surat.
Indian Bank, Surat. Dena Bank, Surat. State Bank Of India, Surat. Bank of
Baroda, Surat. Surat Nagrik Sahkari Bank, Surat. State Bank Of Saurastra,
Surat. Corporation Bank, Surat.

AUDITORS

Shri Special Auditor (Milk), Milk Audit Office, Surat.

3.3 Registered office

41
 REGISTERED OFFICE

SUMUL DAIRY, SURAT. 395008 Dist- Surat. (Gujarat)

LOCATION

Name of Unit : SURAT DISTRICT CO-OPERATIVE MILK

PROCEDURES UNION LTD.(SUMUL)

Registered Office: Sumul Dairy Road(Amroli Road)

P.O.Box. No.501, SUMUL,
Surat 396 008 (Gujarat)

COMMUNICATION WITH SUMUL

If we want to communicate with SUMUL, then their way is as under:

Post Box No.: 501

Telephone Nos.: 02612567693, 2531666, 2538717, 3290801-02
Telegraph: SUMUL
Fax: (0261) 2433572
Reg. No.: PD/688 Dt. 22-8-51
Audit Class: 'A"

E-Mail: root@sumul.guj.nic.in
Website: www.sumul dairy.com

3.4 List of Departments :

42
 Marketing Department
 Production Department
 HR Department
 Quality Control Department
 Store & Purchase Department
 Finance Department

43
“Human Resource
Department”

CHAPTER CONTENTS

1.1 Hierarchy of HR department

1.2 HR Objective
1.3 Role of HR in sumul
1.4 Human Resource Activities
1.5 Employee records
1.6 Recruitment & Selection process
1.7 Training & Development system
1.8 Performance appraisal system
1.9 Promotion & Transfer policy
1.10 Wage & Salary structure

44
4.1 Hierarchy of Organization:

Bord of Director

Senior Executive
Officer

Managing Director

Senior Executive Officer

Junior Executive Officer

Senior Assistant

Junior Assistant

Technician

Workman

45
 Introduction

Personnel department is the key department of the any business. Personnel

department is the main part behind the company’s success or failure. Personnel
management is that part of management, which concerned with people at work
and with their relationship within an enterprise. Its aim is, to bring and develop
into an effective organization. The men and women who make up an enterprise
and having regard for the well being of individual & of working groups to
working groups to enable them to make their best contribution to its success.

The meaning of the personnel dept., labor management or staff

management means quite simply the task of dealing with human relationship
within an organization.

Personnel management is a continuous process. It cannot stop. Personnel

management is a never-ending process. It helps in achieving objectives of
company. This is done by proper perform of personnel function like recruitment,
selection, training & development, labor activity, motivation, welfare etc. it also
helps to keep a smooth relationship between employers & employees.

Sumul believes that the most significant resource are its Human Resource
and Sumul’s Success in the long run depends very much on the quality of its
human resources. Human resource comprise the aggregate of employee attributes
including knowledge, skill, experience and health, which are presently available
to the organization for the achievement of its goal, objectives and service to the
society.

46
4.2 HR Objectives :

 To develop and sustain core values.

 To develop business leaders fro tomorrow.
 To provide job contentment through empowerment, accountability and
responsibility.
 To build and upgrade competencies through virtual learning, opportunities
for growth and providing challenge in the job.
 To foster a climate of creativity, innovation and enthusiasm.
 To enhance the quality of life of employees and their family.

4.3 Role of HR in SUMUL :

 Alignment of HR vision with Corporate Vision

 Shift from support group to strategic in business operations
 HR as a change agent.
 Enhance productivity and performance by developing employee
competency and potential.
 Developing professional attitude and approach
 Developing ‘Global Managers’ for tomorrow to ensure the role of global
players.

47
4.4 Human Resources Activities :

The main activities of this department are selection, training, recruitment, and
welfare actives.

To diffuse the effect of Global Competition, Sumul has adopted the latest
concepts of management practices and provided appropriate training with the
help of leading institute from time to time for up-gradation & development of its
Human Resource. Some of the efforts of Sumul to achieve this are :

Employee Personality Development (Attitude, skill & 1995

Knowledge)
Self Development (Self management Leadership, 1995
Meditation)
Total Quality Management, QC, SGA, Kaizen, SQC 1996
Total Productive Maintenance 1999
Meditation Hall 2000

Other Activities :

1. Washing facilities: The facility of washing clothes is provided to all the

employees

2. Store & Drying facility: The full time workers are given personnel
lockers to store their things and also facility for drying clothes.

3. Canteen facility: it is providing employee to take Break-fast, Lunch and

Dinner at economic price.

4. Rest room: It is also provided to take rest during the Lunch hours.

48
5. First aid facility: It is given for quick remedy of employees. When any
accident occurs during the working hours of the organization.

6. Vehicle parking space: It is provide for employee, worker and visitors

separately.

7. Accommodation: Organization is providing township & accommodation

facilities to employees.

8. Vehicle loan: It is given to Employee / Executive only.

9. Department stores: “KAMDHENU” department store is in the staff

ready credit society / Staff Quarters to purchase all necessary items at
economic rate for employee.

10. Uniforms, Shoes and Raincoats: Uniforms, Shoes and Raincoats are
provided to all employees and workers.

11. House rent recovery: House rent recovery for those employees who are
live in rental house.

49
4.5 Employee Records :

SUMUL keeps the perfect & day-to-day employee record of the entire
employee in the company. Here all the employees are given certain codes & their
data are entered in the computer according to the code. All the employees record
is written down accurately whether the employees are new or old. From the
employees records only the company can know that to whom the company
should given the promotion & to whom the company should give demotion give
demotion. From all the working period of the employee, the company calculates
the provident fund & the allowances of the entire employee. From the employee
record, the company can know the employee’s honesty performance, efficiency,
loyalty etc.

Generally the company also needs record information pertaining

employees that are as follows.

 Employee name.
 Employee present residual address with telephone no.
 Employee Permanent address with telephone no.
 Employee birth date
 Employee’s education qualification
 Year and date of joined services
 Department in which currently works.
 To whom to contact in your absence at your residence & the nearest phone
no.

50
  Age
 Male / female

Employees Development
Training on Personality Development
Training on Self Management Leadership (SML)
Training on Quality Concepts
Total Quality Management (TQM), Quality Circle, Small Group
Activities, Kaizen, Statistical Quality Control (SQC)
Total Productive Maintenance (TPM)
ISO 9000 / HACCP & ISO 14001

Kaizen

Sumul have implemented Kaizen to solve the problems in work

activities, employees & their Job.

Kaizen has five principles :

1. Position before kaizen.

2. Solving the problem in Kaizen coat was the problem?

3. What has been done by employees? What was actually he has to do

4. After position of kaizen what was the Result?

5. Benefits through kaizen

51
4.6 Recruitment & Selection Process

Recruitment:

Sumul as such dose not has a well-defined recruitment policy.

Recruitment is basically done by HRD department in consultation with the
concerned department for which new employee is required. it is not a regular
event as recruitment is done only when there is any vacancy or some
requirement comes up in the organization. All the new employees must meet the
minimum experience and qualification criteria as set by personnel department.

Recruitment Process:

 HR Department receives requisitions.

 Locating and developing the sources of required number and type of
employees.
 Identifying the prospective employee.
 Communicating the information.

Generally, two types of SOURCES are used in the Organization:

1. Internal Recruitment:
It is generally done through promotion and training programs.

2. External Recruitment:
 Direct Interview:
By giving advertisements in the newspapers
 Employment exchange:
These agencies are providing a wide range of services,
counseling assistance in getting in getting jobs, information
about the labour market, labour and wage rates.
 Campus interview.
 Advertisement.

52
Selection Process:
The Selection Process is concerned with determining whether an applicant
meets with all the qualification need to perform a particular job. It means right
person a right place. It is very important because of a wrong person is selected it
will cost to the company. Need of selection would be arise when vacancies are
made in organization. Procedure for selection is differing from organization to
organization and from job to job.

For Executives:

 Written Test
-Aptitude test
-Subject test
 Group Discussion
 Interview
 Final selection

For Non-Executives:

 Written Test
 Final interview
 Final selection

Induction:

When a new employee joins an organization, he is completely a stranger

to the people, Work place and the work environment. Therefore, he is likely to
feel insecure, shy and nervous. For this Sumul provides 7 days for induction.

53
4.7 Training and Development System
“To bridge the gap between job requirements and present competence of an
employee”

Need for Training:

 Job Requirements.
 Technological Changes.
 Organizational Viability.
 Internal Mobility

Training is given in 3 Categories as:

 Management Training.
 Office Training
 Senior Executive Training

The management training is given for 6 months. Officers and senior

Executives attend the management development programmed organized by the
institute. Training is not uncommon in Sumul. It has an elaborate training
program to make employees acquire new skills and knowledge. Both internal and
external training is carried out as and when required.

4.8 Performance appraisal System :

“Performance appraisal is the systematic, periodic and an impartial rating

of an employee’s excellence in mattes pertaining to his present job and his
potential for a better job”.

After recruitment organization gives specific project to the employee to

train him. After completion of this project, it is checked by the authorized person
of the department if the employee do not perform well then they are terminated
from the organization. Performance Appraisal System is still in rudimentary
stage in Sumul. Through Performance the top management does appraisal or
reporting head, it is short on comprehensiveness and touches only few aspects.
However the silver lining is that in order to make system transparent and open,
evaluation is cross-checked with the employee by HRD people and in case of
some differences try to solve out the problem.

54
4.9 Promotions and Transfer Policy

Promotion Policy :

The Management Trainees are given 6 month training and later on if they
perform well are promoted as provisionary and after one year they are confirmed.
Moreover promotion is given on the basis of education obtain by different
personnel.

Transfer policy:

There is not any policy for transfer, but managing director of the
organization generally takes the transfer decisions.

4.10 Wage & Salary Structure :

 Dearness Allowance
 Additional Dearness Allowance (ADA)
 House rent Allowance (HRA)

Some fixed amount of house rent allowance is provided for those who live in
rental house. Sumul has a fixed increment system for each level of authority in
the organization. Only one increment is given a year. There is also a compulsory
increment every 14 and 23 year in which, the employee becomes eligible for
immediate next salary scale. Plus two increments without any change in his/her
designation. However, during last agreement, upgraded employee has also been
given designation as per new salary scale. Recently, Sumul has revised its pay
structure to attract more young talents.

Other Components:

a) Bonus
(8.33% of BASIC +DA+ADA)

b) Funeral Fund
Rs.3000 to the ward and family of the dead.

55
 Every month Rs1/- of all higher executives salary is
maintained for this fund

“Production
Department”

CHAPTER CONTENTS

1.1Introduction
1.2Organization Structure
1.3Production Plan
1.4Activities
1.5Production Process
1.6Micro Motion Studies
1.7Support services
1.8Material handling equipments

56
5.1 Introduction :
Production is defined as arranging the manufacturing resources for the
purpose of conversion of raw materials to saleable produces of optimum quality
and minimum cost. Thus production is the systematic step-by-step conversion of
raw materials through creation of from utility in goods. Manufacturing of goods
is a highly complex process. Goods in the stock which are ready to sell do not
just happen they are the end results of careful planning and control. The company
makes the best use of man, materials and machinery for those sole purposes of
economical delivery of quality goods to customers.

Production management is concerned with decision-making process

related to the manufacturing process. It makes the best utilization of raw
materials available and does necessary processing on it and converts it into
utility. Production management is concerned with planning, organizing,
controlling and co-ordination the manufacturing process, so that resulting goods
or services is reduced according to the expectation, in the amount and by the
cost.

Thus, in a broader sense production management is concerned with

coordination of men, materials, machines and money manufacturing goods. In a
narrow sense it means planning, scheduling and controlling flow of materials to a
plant.

Sumul has produced 15,04,61,760 kg milk during the year out of which
10’09’44’886kg i.e.62.52% consulted Buffalo milk and 6,65,91,094 kg i.e.
37.50% consulted cow milk. Achievement in milk procurement is due to
adoption of animal Husbandry as an effective tool for economic growth by milk
producer members and their devotion to wards milk co-operative movement and
also adoption of business approach by sumul. the figures of overall fat% and
SNF% in both buffalo and cow milk procured Sumul during the year, match with
the normal milk standards (i.e. buffalo milk 6.8% fat, 9.00%snf, cow milk
4.3%fat, 8.5%snf) which aids the union in marketing good quality milk and milk
products.

Sumul has paid on an average Rs. 215/- per kg its milk producers /
farmers. It has attained self-sufficiency in its milk requirement. Now. Sumul is in
a position to surplus milk to mother dairy of Gujarat co-operative milk marketing

57
federation limited, Gandhinagar and other district co-operative milk unions, in
Gujarat.

58
5.2 Production Management Structure :

Managing Director

In charge Strategy
Production manager (1) Production manager (2)
Business Unit Center

Packing of Shrikhand Cream Processing

Milk Processing

Sweets Tanker Handling

Cream Processing

Packing of Pasteurized Raw Milk

Milk Transportation

Packing of Manufacturing of
Flavored Milk Pasteurized Milk
Milk Transportation

Packing of Manufacturing of
Ghee Manufacturing Skim
milk Powder

Packing of Manufacturing of
Dahi

59
5.3 Production Plan :

1. Sales / marketing department is sending daily demand to the production

department as per demand market department.
2. FROM Gujarat co-operation milk marketing federation every week
sending demands of Amul products.
3. According to satisfy both production department prepare their production
plane schedule. Production plan schedule generates raw material
requirements packaging material & it contain utilize requirements

5.4 Activities of Production Departments :

1. Production of planning
2. Material requirement planning
3. Store finished goods and raw material
4. Quality control
5. Packaging
6. Painting of pack product
7. Transport to Marketplace
8. Washing and cleaning of equipments, regular maintenance of machine and
other equipments.

60
 5.5 Production Process :

Milk cycle:

1. A machine milking the cow

2. Milk producer’s co-operative Ltd collects the milk from the entire village.
3. The collected milk is tested against the set standard. That insures quality
of milk being received from the root level.
4. The received milk is sold locally as well as transported to the dairy for the
further processing
5. The milk is tested in dairy lab. No compromises with the quality of milk
being received.
6. The qualified milk is received at raw milk receiving Dock at dairy.
7. Cleanliness is always the top priority at any stage of milk cycle cans
cleaning process.
8. Milk is pasteurized, clarified and standardized using lasted technological
machine & equipments.
9. Milk again tested before being packed.
10.Pouch filling for all the end users.
11.Packed milk stored in well-maintained cold storage.
12. Milk dispatched for the sale in the marker.

61
5.6 Time Motion Study :

During the visit to the production plant we have done micro motion study
of a worker whose work was to take the milk pouched from the machine and the
keep them on crate, which uses to come serially on the belt conveyors. The
position of the person was such that it to very less time.

The pouches of 500 ml were filled in Polly bags, sealed and ready pouches
were thrown though the pouch-filling machine.

1. First of all we caught the two pouches in one hand and again two pouches
with other hand (5 sec)
2. Then he kept all the four pouches together in the crate coming over the
Belt conveyor. (4 sec)
3. He again tuned and caught all the four pouches with two hands. (5 sec)
4. And again kept all the four pouches together in the crate coming over the
Belt conveyor. (4 sec)
The entire process was completed in 18 sec.

5.7 Support Services :

Maintenance

Maintenance is necessary for both raw materials as well as finished goods.

The company has to put stress on the matter regarding the spoiling of goods due
to weather or other aspects. At SUMUL, there is a strong maintenance procedure
on raw materials & final products, because such milk products should be
maintain in such way they maintains their quality for the long period of time.

Packing

Packing is one of the most important factors that management must have
to consider in mind. When the raw materials are converted in the finished goods
all the products are then send to the packing room. Here different machines are
available for different types of packing. The firm is now going for a new type of
packing called Gable top packing. The main advantage of such type of packing is
in this packing milk remains fresh for about 10 days. Soon, Sumul milk will be
available in such type of package.

62
5.8 Material Handling Equipments Used :

Equipment Quality
Milk Tankers :
Sumul 13
On contract 11
Tempos 70
(on contract)
Belt Conover 8
Crates 40,000
Cans :
40 Liter. 250
20 Liter. 25
Crates Trolleys 50
Cans Trolleys 10
Plastic Tube 5
Glass Betties 35,000
(200 ml)

63
“Quality control
Department”

Chapter Contents

6.1Types of instruments used in testing

6.2Parameters tested
6.3Quality certificates
6.4Total Quality Management

64
 6.1 Types of instrument used

This departement is Established in 1968 at the established time of sumul.

Types of instrument used in testing :

1. Analytical Balance :- for measuring weight

2. Infrade Analysis:- for measuring parts of milk like Moisture Balance, Mill
Scope
3. Buting strength measurement: - for packing material
4. Molcotestores:- for measuring fat
5. Centrifuge
6. Incubators
7. Hot Air Oven

6.2 Parameters tested

Parameters Tested in the Lab:

 Flavor
 Smell
 colors
 Addivities
 Neutralizers
 Acidity
 Fats
 SNF
 Milk Proteins
 Moisture percentage
 Yeast & Mold

65
 6.3 Quality Policy

QUALITY POLICY

“WE AT SUMUL DAIRY, ARE DEVOTED DEDICATED AND

MOTIVATED WORKFORCE TRAINED TO ENSURE CONSISTENT
SUPPLY OF GOOD QUALITY AND SAFE MILK PRODUCTS TO
ACHIEVE HIGHEST LEVEL OF CUSTOMER
SATISFACTION."

They achieve this by continuous training of the producer’s members and

continuous monitoring and upgradation of procedures and processes applying
scientific innovations and state of the art technology received from Sumul union.
They are also committed to social and economic development of the community
and remain eco-friendly

Objective

ENVIRONMENTAL POLICY

Surat District Co-operative Milk Producers' Union Ltd. Is engaged in

manufacturing of Milk and Milk Products and marketing it within Surat district

66
under "Sumul' brand and outside Surat district under brand name of "Amul' and
'Sagar". We are conscious and committed to protect and preserve Environment.

The guiding principles of our Environment Policy are as follows:

 Comply with all applicable environmental legislation, regulations and

other requirements.
 Control Plant Operations to conserve natural resources such as water,
electricity & fuel and prevent pollution.
 Promoting greening of the earth in and around our manufacturing
complex. Minimizing generation of 'waste or effluents.
 Continual improvement of our environmental performance.
 Creating awareness towards environmental issues among suppliers and
stakeholders.

This Environment Policy shall be communicated to all employees and made

available to contractors, transporters, suppliers, customers and other interested
parties.

In line with its quality policy and its Environmental Policy SUMUL has
achieved the ISO Certification, namely:

ISO 9001-2 FOR QUALITY CONTROL

ISO 14001 FOR ENVIRONMENTAL SAFETY MANAGEMENT
And also has
HACCP- Hazard Analysis Critical Control Point

TOTAL QUALITY MANAGEMENT

Quality Certification:

67
  ISO - 9000

ISO means International Organization For Standardization. It is the

international level organization, which is done to keep rules and regulation of
preservation. It was established in 1946 and in 1979 has been implemented
contains ISO-9000 series, which standardized by providing certificate.

Following points are considering for implementing:-

 To arrange commitment of top management and starling

 To decide quality policy.
 To make quality manual
 To implement quality procedure manual.
 As per quality procedure manual all the system are audited. Non
Conformity report checks if it is not as per manual.

Union has adopted International Standards for Quality Management. QAS

Australia has certified SUMUL quality management systems by issuing ISO
9002, ISO-14001 and H.A.C.C.P. Certificates. By adopting quality management
system, SUMUL has standardized all process and procedure system for
production of milk and milk products. As usual, it is easy to design system but
difficult to implement it. But with active Participation and dedication of workers
and staff & with better leadership & guidance of Board of Directors, Officers,
Continuous training programs under TPM, they have successfully Implemented
ISO Standards.

At every six months interval, Total Quality Management System has to be

audited and if found proper as per standard Quality Management norms then
certification are renewed. They have received continuous renewals.

 ISO – 14000

This certificate is for environmental control and it came in the year 2002.
Accreditation of ISO 14001 certificates is a testimony of their commitment
towards their customers for 100% quality safe milk and milk products. By
complying with Terms and Conditions of ISO 9002, ISO 14001, HACCP,

68
Quality Management and Environment Control, Union has undertaken various
measures for fully automation in their various production line, installation of
Automatic Machinery in various production line is in progress.

LICENSES FOLLOWED BY SUMUL

 ISO 9K2K
 HAACP
 MMPO
 ISI
 AGMARK
 PFA
 ISO14000

6.4 Quality & Organisational Focus

69
Sumul is doing value addition at each stage in terms of :

Improving raw milk quality, Controlling microbiological

growth & Improving Product shelf life
Coordination between CD Development Dept, Chilling
Centres, Marketing, Production & QC
Undertaking activities like - Clarification, Pasturization,
Standardization, Bacteriological Testing etc

Process Reengineering undertaken

for optimizing process & storage temperature

reduction in Material Handling during manufacturing
process & usage of SS Pipelines & Equipments.
Technological upgrading of equipment's by incorporating
state of art technology & Automation in certain areas
CIP through Centralized CIP unit supported by Manual
Scrubbing of Pipelines & Tanks etc.
Improving MBRT at all levels

Adherence to Standards
PFA, W&M & NDDB
ISO 9002 / HACCP & 14001

Improving Good Manufacturing Practices

Implemented TQM, KAZIEN, SQC & TPM concept at all

stages.
Increased Overall Equipment Efficiency (OEE)
Reduction in Machine Down Time
Increase in Preventive Maintenance
Reduction in Leakage, Quality Rejection & Reprocessing

70
Availability of Maintenance Personnel at Floor
Multi skill development
Reduction in Utility Consumption

71
 “Marketing
Department”

CHAPTER CONTENTS

1.1 History……….
1.2 Objective………
1.3 Marketing system…
1.4 Pricing policy………..
1.5 Channel of distributors…
1.6 List of competitors………..
1.7 Promotion policy……..

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1.8 System of approaching to the customers……….
1.9 Customer satisfaction…
1.10 Records of customer base…..

73
7.1 Hierarchy of Marketing Department

Managing Director

Senior Executive Officer

Senior Executive

Junior Executive

Senior Assistant

Junior Assistant

Workmen

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Introduction

Human needs, human necessities have no end. The aim of business

activity is to acquire wealth, then to convey it into desired forms and to make the
final product available for exchange for the satisfaction of human needs. These
all activities fall under industry commerce and trade. These three branches have
one common function i.e. exchange function. This important and powerful
function is known marketing.

‘Marketing is a Social management Process by which individuals &

groups obtain what they need & want through creating, offering & exchanging
products of value with others.’

7.2 Objectives of Department :

 Increase the yearly sale of sumul products by 15 present in compression of

last year’s same month.
 The monitor the internal and external customers satisfaction level.
 To monitor the product and the storage condition including GMP and
distributors parlor retailers levels.
 Training and awareness to customer regarding ISO-9000, ISO-14000,
HACCP, GMP and Sumul products about 1000 customer per year.
 Appoint 5 new agents per month to make milk easily available in market.
 To take 25 milk awareness programs at various schools in Surat.

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7.3 Sumul’s Milk Marketing System

Sumul’s milk marketing in Surat city is monitored, eliminating costly

sales-booths and though regular and assured twice a day supply of milk to 1662
concessionaires (Agent) and 198 institutional buyers, through 85 contractors’
route vehicles. There is guaranteed cash inflow of the sales proceeds on day-to-
day basis and safe return of crates etc. to the Dairy. The standardized /
pasteurizes milk is dispatched to the city twice a day to the network of
concessionaires (Selling it on behalf of Sumul on a commission basis). The
institutional buyers are supplied milk in sealed cans. Contractor’s trucks carry
milk from the Dairy Plant to the places of these concessionaires who caters to the
domestic demand of milk in their respective earmarked areas.

Both economic and operational advantages of keeping the sales-counters

at the residential places of the Agents are distinct as:

 No creation or maintenance of these sales-counters is involved.

 All the security of milk, material and money.
 Operational convenience to deliver milk and off tack of crates etc. from
these permanent places at any time, including odd hours.
 Utilization of Agent’s family, labour and residential place and hence very
economic operation for them and the Dairy.
 Familiarity of the Agents with locality and vice-versa and hence smooth
dealing under mutual confidence.

The institutional buyers include hotels, restaurants, canteens, hotels,

charitable institutions, milk vendor’s etc. who enter into contracts for purchase of
milk for the entire year and receive milk as per the contract, twice-a-day, in
sealed cans, through the contractor’s milk routs and make the full payment to the
Dairy Representative just at the time of delivery of milk to them.

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 The contractor are responsible for any shortage, breakage OR pilferage of
milk and material occurring during transportation. While the Agents hold the
responsibility of any such incidence occurring at their level. There is regular,
assured and smooth in-flow of cash from milk sales from the Agents to the
Dairy’s Cash Collection Centers on day-to-day basis without involving a bank
for collection of sales-proceeds and maintaining individual accounts. The Agents
sale milk delivered to these Agents during the day and they develop the sale-
proceeds daily at the nearest Cash Collection Centers of the Dairy. The Dairy
runs these Centers for all 365 days in a year for regular day-to-day receipt of
cash amount. For any default on the part of the Agent, such as non-payment or
short-payment of cash, the Dairy takes corrective action almost instantaneously.

Sumul also encourage a small Savings Scheme for the Agents by

deducting a particular amount from the commission every month and transferring
the same into their deposit amount, thereby allowing the deposit to build-up
every month, which gets additional security to the Dairy as well as to Agents.
Any amount in excess of three times, the realization from the daily sales can be
withdrawn by the Agent any time during the year. Currently the commission of
40 paise per liter is paid to the Agent.

7.4 Pricing Policy :

Generally the pricing policy is not disclosed to anyone. General
information regarding to setting of price is it has fixed structure followed by
GCMMF at Sumul farmers are paid on the basis of kilo fat in their milk. They
are paid Rs.212 per KG of kilo fat. Taking this as base the price of the product is
being set. Hence the price of other product or ingredients used. In case of keser
peda, kesar is used for malaipuri certain dry fruits are used to taken into
consideration and accordingly their prices the price is set. Here the electricity
expenses are also added to it. No additional profit is being charged. Here while
setting the price the care is taken that the price of the product of Sumul is kept
low equal to the precluding price of the similar product in the market.

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7.5 Channel of Distribution :

Dairy Agent Customer

1. Direct Distribution Channel :

Sumul is handling 1900 outlets for selling their buttermilk, tea
and sugar.

2. Indirect Distribution Channels :

Sumul is distributing various products: milk, milk products &
other than milk products. There are 3 major distributors in Surat city &
19 distributors in rural areas. All dairy co-operative society acts as a
distributor for all Sumul products. In Surat city Sumul has created 3400
outlets; Sumul has their own 44 milk parlors which are in direct contact
with the customer.

Information technology growing very fast and Sumul always ahead in

technology. Customer should be got advantage of these technologies for this
reason Sumul Started online shopping facility to Direct Customer as well as
Distributor and parlor also net facilities like.

Direct Customer www.sumuldairy.com

Distributor and parlor www.b2bsumul.com

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Area covers :

The distributors nad parlors cover whole Surat District including Surat
City, Bardoli, Vyara, Kodod, Ukai, Chatthan, Kamrej, Kim, Kosamba, Olpad,
Kathor, and Sayan. This whole district is coverd by almost 3000 retail outlets;
They constanltly remain in contact with the customers.

Market Share :

In dairy industry Sumul Dairy is wide term. We are the market leaders in
almost each dairy product in Surat District.

Product market share

Ghee 70%
Paneer 50%
Shrikhand and Sweets 15%

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7.6 List of Competitors :

The raw milk section comprises local co-operative such as Choryasi, Payal
etc. & Vendors. Following some of the dairy all from the district i.e. from North
Gujarat & Maharashtra:

 Unity dairy, Uttarsanda

 Jeevan Shakti, Dhuliya
 Vishalsagar, Dhuliya
 Gopi Milk Products, Puna
 Gautam Milk Products,Kopargoan
 Gayatri Milk Dairy
 New Suraj Dairy, vijapur
 Sarita Milk Producyts, Kadi
 Britannia Ghee
 Neslte Milk powder, Ghee
 Sardar Dairy, Mehsana
 Vimal Dairy, Mehsana
 Royal Dairy, Gandhinagar
 Suffal Paneer
 Satyam Dairy, Gandhinagar
 Sumathur dairy
 Mahakall Dairy, Sidhp

Besides this unorganized milk vendors are the major competitors in milk
business.

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7.7 Promotion Policy
Promotion activity mainly consists of advertisement. Sumul is a
cooperative sector and so the advertisement budget is quite less. However Sumul
dairy spend nearly 20 to 25 lakh on the advertisement. The contract of
advertisement is with the Venus ads. Here advertising is done through hoardings,
banners, wall painting, newspapers, and stickers etc. Sumul as part of promotion
activity holds “Sumul healthy baby contest” on regular intervals. The
participation is increasing every time the contest is being held. Here every one is
given information about product of Sumul and their views regarding the Sumul
product. What change they want? Which other product they want? Are also being
asked shop painting is also promotion activity carried on by them.

Another Promotion Activity :

 Changes have been done in paking and slogans of few products.

 Door to door advertising is done for new product.
 Facility of taking loan from bank for vehicle and refrigerator are given to
agents.
 A mobile van with facility to test milk show films to customers and
address public regarding the hygienic aspects of Sumul milk.
 “Sumul Dairy Cooking Competition” organized by Sumul at Hotel
Holiday Inn, Surat.
 “Rasoi Show” organized by Sumul at Hotel Holiday Inn, Surat.
 Sumul Healthy Baby Competition.
 Sumul Painting Competition 2002-02 organized by Sumul & Saint
Xavier’s School
 School students visiting Sumul as a part of their education to know about
production activity.

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7.8 System of Approaching the Customers :

Sumul is doing the following activities to Approach to its customers.

 Advertisement: By giving the advertising and to a local TV channel by

hosting famous anchor advertising through during festival Seasons.

 Hoarding : Advertising through hoardings during Festivals

 Paneer Show: In this show different items made from paneer are sold at a
discount rate.

 Healthy Baby Contest : In order to popularize milk and milk products,

Sumul organize every year Sumul Healthy Baby Competition. Healthy
Baby Contest is unique contest of its kind in surat. It is conducted each
year since 1992 successfully.

 Education Programs: The firm also gives information to the cool

children about cow milk by visiting different type of schools in Surat city.

 House Visits: The companies also visit different houses and collect
information about different products of the company and also take
suggestion from the customer.

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7.9 Customers Satisfaction :
Needs:

1 Hording & banners of Sumul products are used for advertisement.

2 Change have been done in packing & slogans of few production
3 Door to door advertisement is done for new products.
4 Facility of taking loans from bank for vehicles & refrigerators are given to
agents.
5 The schoolboys & girls, who are the future customer, are educated about
Sumul milks & milks products & its purity.
6 A mobile van with facility to test milk, show films to customer & address
public regarding the hygienic aspects of Sumul milk.
7 Cash center has been opened in different areas & through bank so that the
agent can deposit their cash daily.

Feedback

1 After personal visit to customers & explaining the causes of complaint.

2 Replacement is given for storage milk or low weight milk pouches.
3 If agents changes more than MRP than they are fined & even terminated.
4 Agents may also be terminated for his unwanted behavior.
5 Customer satisfaction is most important for the organization.
6 The organization goes for consumer survey to know their preferences &
intended Demand.
7 A separate wing is creating in the sales department who takes care of
customer complaint. Consumer forums in different areas are formed and
regular meeting are organized to address their grievances.
8 Complains are received either by the letter or telephone.
9 Complains are entered in to the customer complaint resister.
10 Seeing the nature of complaint, action is taken.

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Complain

1 Curding of milk
2 Low weight
3 Price changed by the agent more than MRP
4 Agent’s Behavior
5 Leakage

Complain Process Steps

1 Receive the complain

2 Complains are received either by the letter or telephone.
3 Complaints are entered in to the customer complaint resister
4 After the proper evaluation of complains the necessary steps or action are
taken by the marketing department.

7.10 Records of Customer Base :

Sumul has got more than 1900 customer (approx) and Cods No. is given to
each and every customer’s telephone / fax no., email, person to be contacted.
Sumul is also maintaining file for each and every customers and copy of any
correspondence exchanged between the customers by Office of Branch Office
are available in the said file for reference, i.e. whenever Office is corresponding
with the customers, a copy of the same will be forwarded to the respective
Branch Office and Vice-versa.

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 “Finance
Department”

CHAPTER CONTENTS

8.1 Hierarchy of finance Department

8.2 Objective
8.3 Source of Finance
8.4 Activities of Finance department
8.5 Cast system
8.6 Payament Process
8.7 Study of final Accounts
8.8 Tresury operation

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8.1 Hierarchy of Finance Department :

Managing Director

Material Manager Account Manager Finance Manager

Assistant Manager

Senior Executive

Junior Executive

Senior Assistant

Junior Assistant

Workmen

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Introduction:

Finance management is that managerial activity which is concerned with

the planning and controlling of the firm financial resources. Still today it has no
unique body of knowledge of its own and draws heavily or economic for its
theoretical concept.

“Finance management means the use of such managerial function as

planning and control to undertake finance function.”
Earnest Walker

Sumul is the co-operative so it has not special financial department. Sumul

require a lot of funds for meaning its working capital needs and other obligations.
It manages its working capital needs through internal funding only. There is
regular, assured and smooth in flow of cash from milk sales from the agents to
dairy’s Cash Collection Centers on day-to-day basis. The dairy runs there centers
for all 365 days without fail. Intact there is a separate cash recovery department
in the organization to look exclusively this aspect. Because of its excellent cash
collection system, Sumul generally does not face any difficulty in dispensing
amount to the producers every month and meeting other obligations.

However, for the expansion work and setting up new projects, it takes
loans from NDDB

8.2 Objectives :
The main objective of finance department is Sumul are as under.

 To monitor & measure debtors

 To prepare profit & loss account
 To maintain working capital at minimum level compared to last year.
 To prepare a balance sheet of 7th may each year.
 To monitor & measure internal customer satisfaction.
 To increase short-term investment by 10%.

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8.3 Sources of Finance :

In the Sumul dairy requirement of finance is major into two major areas.

 In working Capital
 Investment on expansion
These requirements fulfill by taking loan and issuing share.

(1) For working Capital :

To meet the needs of arising working capital Sumul makes transactions from the
following banks.

 The Surat District Co-operative Bank Ltd, Surat

 Sarvoday Sahakari Bank Ltd, Surat
 State Bank of India, Surat
 Surat Mahila Nagrik Sahakari Bank, Surat
 Indian Bank, Surat
 Dena Bank, Surat
 Co-operation Bank, Surat

(2) For Investment on Expansion :

 National Dairy Board

 Share capital
 Debenture

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8.4 Activities of Finance Department :

 Planning & budgeting of financial resources.

 When financial resources is not that time taken loans. Issuing shares.
 Issuing financial resources to different department. Working capital
managing
 Balance sheet & Annual general prepared. Accounting management.
 Cash management

Annual Business Plan:

The annual business plan is prepared by taking the information regarding

sales of every product. The sales officer compile these data taking into
consideration growth rate of city population, per capital consumption so as to
arrive at overall market size and targeted market sale for Sumul product, for the
effectiveness of annual business plan the data regarding marketing channel, and
product mix are needed.

Data Required for Annual Plan:

 Product mix plane

 Marketing channels
 Manpower requirement
 Estimated investment
 Institutional demand
 Segment wise demand estimation
 Years procurement analysis
 Years procurement capacity
 Urban population demand

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8.5 Cost System :

Cost is one of the main factors affecting finance department. There are lots
of control techniques through which companies can control their cost. Costing is
the factor that affects the pricing as well as profits of the company. If the costs
are controlled then the company can fix competitive price and achieve targeted
returns. If the company is able to get the cost at minim um level then can get an
additional benefit over their competitors. To control Cost Company might have
to:

 Replacement of worm out machines and equipments with new ones.

 Make or buy decision
 Extension of existing production plant.
 By having latest technology machines and equipment.
 By producing large quantities of products.
 Controlling the inventory levels.
 To do investments where maximum returns can be achieve.

Cost Structure of Product:

Production cost
+ Transport expenditure
+ Profit Margin
+ Commission
------------------------------
Cost

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8.6 Payment Process :

1 Collection of sales bills & sales data

2 Data verification with sales information
3 Feed concern data in computer
4 Feed duration data in computer
5 To pass duration entry to the computer.

To the Milk Producers

Finance department will make payment on the base of certified &

approved bills.

1 Receipt of milk collection data.

2 Verify the data with concern department & payment for each dairy co-
operative society.
3 Feed all the data in computer with oracle support
4 Reduction of DCSP (dairy co-operative society purchase) & other
miscellaneous
5 Account of net amount payable to society is prepared.
6 The payment will send by MT (Money Transfer) by district co-operative
bank.

To The Transporters

All the come to the finance department for final payment. Every bill is
certified by the concern department authority. They have to give justification for
any expenses.& then finance department will make payment to the transportation
for any expenses.& then finance department will make payment to the
transporters on the bases of certified & approved bills.

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 8.7 Study of Final Accounts & present Business
and Financia Position:

The total turn over of the union is Rs.607 Crores which is 16.28% means
85% more than previous year. Union has made Rest. 1,63,31,368 net profits after
providing Rs. 521 lakhs for depreciation, Rs. 46 Lakhs for income tax provision,
at the end of financial year 2006-07.

Board of Directors has recommended distributing 15% Dividend, within

the limit of provision in Co-operative Act.

8.8 Treasury Operation:

The treasury operation of the company is panned in such a way so that it

maintains purchase cost, production cost, inventory management and budgeting
based on the market forecast. Treasury operation is maintained to facilitate
demand and supply condition, timely payments for purchases, meeting
contingency expenses. Proper dispatching of the good on delivery dates and
minimizing opportunity cost. Some unseen contingency may arise such as strike;
flood fire etc. for this purpose also there way should be made.

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 “Purchase &
Stores
Department &
Transportation”

CHAPTER CONTENTS

9.1 Organization.
9.2 Activities of purchase Department.
9.3 Activities of stores Department.
9.4 Stores Procedure.

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 9.5 Inventory control
9.6 Transportation.

Purchase Department
Introduction

In a narrow sense the purchasing means going the open market, finding
the lower price at which a standard item is offered & selecting a supplier who is
offering it at that price. But in broader sense purchasing is much more then that.
It can be defined as an art or science.

9.1 Organization

The purchase department organizes their purchase function in such a way

so that it facilities smooth functioning of manufacturing processes. They make
timely purchase of row material and other required items. They organize their
purchase and store function in order to reduce their cost and time.

9.2Activities of purchase Department Organization

Mainly purchase dept is related with store dept, finished product

development (Ghee, Sweets and Shrikhand) finance dept, purchase dept is
received from various dept like engineering, laboratory, autogarage, dairy plants
and chilling centers.

This indent first of all goes to store dept, store dept verifies the stock
position and later by giving code number and last purchase reference being
related to purchase dept.

1. Receives the purchase orders.

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 2. Checking the present stock.
3. Placing order for purchase on the basis of price & quality.
4. Preparing comparative statement of party tender.
5. Before receiving raw material checking all the required parameters.
6. Put order on the basis of price list of all the manufacturers.

Following materials come under purchase department:

 Packaging material.
 Machinery spare parts.
 Electrical equipments.
 Stationary products.
 Computer Hardware
 Chemicals for Quality controlled lab
 Instrument for calibration

Separate space for each type of products is made and in bin card quantity used &
quality present all such entries are made.

Stores Department
Introduction:

Stores Department mainly deals with storing of raw material, finished

goods, inventory management and keeping the records

9.3 Activities of stores departement:

 Storing raw material and finished goods

 providing the equipment whenever required
 Maintain bin cards
 prepare indent letters
 Keeping records of materials used purchased & current stock

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9.4 Store procedure:

When new purchase of raw material is done send to store division,

store in charge will verify the quantity received & another person from concern
dept check the received stock.

Finished goods store directly from production dep & finished stocks send
to store. About the quantity received on one day the same is entered by store in –
charge with date & time.

9.5 Inventory Management:

It is a very crucial part of working capital, hence it is necessary to manage

inventory effectively & efficiently. It is consists of following:

Raw Material:

 Packing material
 Machinery spares part
 Electrical equipment
 Stationary product
 Computer hardware
 Edible essence & colors
 Chemical for Q.C sLab
 Instrument for calibration

Finished Goods
 Ordinary Storage

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  Cold Storage

9.6Transportation
Transport services for milk Distribution and sales activity of Sumul is
always active in all times and situations.

The distribution of milk is done through contract vehicle Each vehicle

more 4 times daily in the route. The advance payment is done after 20th of the
running month and final payment in done on 14th of the next month.

The penalty is charged in the following case:

 If vehicle does not reach on stipulated time.

 If vehicle keeps more materials than gate pass.
 If loader of the driver misbehave at the dispatch dock.
 If there is complain from the agents.
 For the supply of less material to agents.

Distribution Network:

For Product Marketing Sumul have Distributors and Parlors. In Surat

district Sumul has total 20 distributors and 30 Sumul Dairy Parlors.

Milk collected at DCS level is transported to chilling center twice a day.

From the chilling center, milk is transported to Sumul dairy though insulated
milk tankers. Sumul has own 12 tankers to procure milk directly from the village
where Bulk Chilling Unit facility is available. As such contract tankers ferry milk
twice a day from chilling centers, Sumul owned tankers go once a day to fetch
milk.

For distributing milk to consumers, Sumul has a unique system. It distributes its
liquid and flavored milk through a network of 1700 agents through out of city. It

97
does not have distributors for the same. However, for other products like Butter,
Cheese, Ghee and Sweets; Sumul has distributors. According to officials in
marketing department, because of this agent system, they have been able to
supply milk in the city unfailingly without fear of agents suddenly turning hostile
in large numbers.

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99
“Consume
r Mindset
After
Changing
the Brand
Name of
100
Sumul As
Amul”

101
Objective: To check the consumer mindset after
Sumul brand changed as Amul brand.

Purpose of the study:

Whether the quality of the milk has been decreased, increased

or no difference after this federation of Sumul milk with Amul as a

Consumer survey.

What is the reason for Sumul at first stage not to

join in this federation?

We all know the brand name “Sumul” which is well

Established in Surat district, it will be possible that after join in federation

Their selling will be decreased because most of the people do not about

Reality of the milk that milk is same.

Another thing is its bad effect lying on the other product of

Sumul & they have to forget Sumul brand specially on milk because they

have to print Amul brand on milk.

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 What is the reason to join in this federation?

There are a several reason behind it:

The most important reason is if this step not have been taken then they

Compete with each other & it’s lost for all.

Another reason is we know that there are lots of competitions

In the market for any product for Sumul there are Choryasi dairy, Rajhanse

Are the main competitor Choryasi is one of the best competitor of Sumul &

Also Relience want to come in this sector so to give them fight they have to

Walk with each other so after some time Sumul is ready to join in this

Federation.

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 What is the reason to choose this topic?

I have been already completed the survey on consumption

Pattern of milk in Surat city, it was for the purpose of Sumul, at that time I

Was gone in Varaccha area in this area I found that some people response

me In this manner like quality has been decreased after Sumul brand

change Into Amul.

So, I decided to take this topic as a Subject.

So I covered almost 9 area in Surat like Kailashnagar,

Adajan, Sagrampura, Varaccha, Nanpura, Bhatar, Katargam, Gopipura,

Ghoddod, Athwalines & Citilite.

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 Kailashnagar

In Kailashnagar area, I found that before federation almost 90%

people used Sumul milk & also 80% people are satisfied with it only 10%

are using Choryasi milk & only 10% are not satisfy with Sumul milk.

After federation 60% people are satisfied with Amul milk when 40%

people are not satisfy with this milk & also 90% people are knowing about

federation & only 10% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk.

About education of the people in this area.

In this area 40% people are luckily to go in primary & secondary

& 60% people are luckily to go ii Graduation & post graduation.

So, it is not possible that people are illiterate & doesn’t know

about federation.

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 Adajan

In Adajan area, I found that before federation almost 89%

people used Sumul milk & almost all are satisfied with it, only 11%

are using Choryasi milk.

After federation 67% people are satisfied with Amul milk when 33%

people are not satisfy with this milk & almost all people are knowing about

federation. The main reason for not satisfy is the thickness is less then

Sumulya milk.

About education of the people in this area.

In this area 78% people are luckily to go in primary & secondary

& 22s% people are luckily to go ii Graduation & post graduation.

So, it is not possible that people are illiterate & doesn’t know

about federation.

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 Sagrampura

In Sagrampura area, I found that before federation almost 62%

people used Sumul milk & almost all people are satisfied with it only 31%

are using Choryasi milk .

After federation 62% people are satisfied with Amul milk when 38%

people are not satisfy with this milk & also 85% people are knowing about

federation & only 15% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk.

About education of the people in this area.

In this area 8% people are illiterate, 31% people are luckily to go

in primary & secondary & 61% people are luckily to go ii Graduation & post

graduation

. The main thing is in this area even today the market of Choryasi

dairy is good.

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 Varachha

In Varachha area, I found that before federation almost all

people used Sumul milk & also 93% people are satisfied with it & only 7%

are not satisfy with Sumul milk.

After federation 57% people are satisfied with Amul milk when 43%

people are not satisfy with this milk & also 79% people are knowing about

federation & only 21% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk.

About education of the people in this area.

In this area 21% people are illiterate, 64% people are luckily to

go in primary & secondary & 15% people are luckily to go ii Graduation &

post graduation.

There are traditional people in this area & they want more

thickness in milk, also there are a more illiterate people here so it may be

possible that many of them doesn’t know about the federation.

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 Nanpura

In Nanpura area, I found that before federation almost 73%

people used Sumul milk & almost all people are satisfied with it only 13%

are using loose milk.

After federation 80% people are satisfied with Amul milk when 20%

people are not satisfy with this milk & also 87% people are knowing about

federation & only 13% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk &

selflife of milk

About education of the people in this area.

In this area 53% people are luckily to go in primary & secondary

& 47% people are luckily to go ii Graduation & post graduation.

So, it is not possible that people are illiterate & doesn’t know

about federation.

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 Bhatar

In Bhatar area, I found that before federation almost all

people used Sumul milk & almost all people are satisfied with it.

After federation 62% people are satisfied with Amul milk when

38% people are not satisfy with this milk & also 85% people are knowing

about federation & only 15% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk.

About education of the people in this area.

In this area 54% people are luckily to go in primary & secondary

& 46% people are luckily to go ii Graduation & post graduation.

In this area the market of Choryasi milk is good because of good

availability.

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 Katargam

In Katargam area, I found that before federation almost 90%

people used Sumul milk & also almost all people are satisfied with it only

10% are using Loose milk.

After federation 50% people are satisfied with Amul milk when 50%

people are not satisfy with this milk & also 90% people are knowing about

federation & only 10% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk &

selflife of the milk

About education of the people in this area.

In this area 10% people are illiterate, 80% people are luckily to

go in primary & secondary & 10% people are luckily to go ii Graduation &

post graduation

So, it is not possible that people are illiterate & doesn’t know

about federation.

111
 Gopipura

In Gopipura area, I found that before federation almost 80%

people used Sumul milk & almost all people are satisfied with it only 10%

are using Choryasi milk & 10% are using loose milk.

After federation 70% people are satisfied with Amul milk when 30%

people are not satisfy with this milk & also 90% people are knowing about

federation & only 10% doesn’t know about it. The main reason for not

satisfy is price is high & also the thickness is less then Sumulya milk.

About education of the people in this area.

In this area 10% people are illiterate, 80% people are luckily to

go in primary & secondary & 10% people are luckily to go ii Graduation &

post graduation.

So, it is not possible that people are illiterate & doesn’t know

about federation.

112
 Ghoddod, Athwalines & Citilite

In Ghoddod,Athwalines, & Citilite area, I found that before

federation almost 88% people used Sumul milk & almost all people are

satisfied with it only 6% are using Choryasi milk & 6% people are using

loose milk.

After federation 82% people are satisfied with Amul milk when 18%

people are not satisfy with this milk & also 94% people are knowing about

federation & only 6% doesn’t know about it. The main reason for not

satisfy selflife & also the thickness is less then Sumulya milk.

About education of the people in this area.

In this area 53% people are luckily to go in primary & secondary

& 47% people are luckily to go ii Graduation & post graduation.

In this area there are good educated people & most of

businessman so price is not so important for them.

So, it is not possible that people are illiterate & doesn’t know

about federation.

113
114
Q-5 Which milk you were using before Sumul’s brand name change as
Amul?

120
103
100

80

60

40

20
11
6
0 0
0
Sumul Choryasi Rajhans Loose Others

9% 0% 5% 0%

Sumul
Choryasi
Rajhans
Loose
Others
86%

Conclusion:

As shown in above two charts it is clear that most of the people around of
86% (103 out of 120) were using Sumul’s milk before its brand name
changed as Amul. 9% were using Choryasi milk & 5% were using Loose
milk.

115
Q-6 At the time when Sumul brand was used, were you satisfied with
its milk?

90
84
80

70

60

50

40

30

20 16

10
2 0 1
0
Highly Satisfied Satisfied Dissatisfied Highly Dissatisfied Neutral

2% 0% 1%
16%

Highly Satisfied
Satisfied
Dissatisfied
Highly Dissatisfied
Neutral

81%

Conclusion:

As shown in above two charts out of 103, around at 97% were satisfied with
the performance of Sumul’s milk and only 2% were dissatisfied with the
performance of Sumul’s milk & 1% were neutral with the performance of
the Sumul milk.

116
Q-7 Were you aware of Amul brand before Sumul’s brand name
change as Amul?

120
108

100

80

60

40
12
20

0
Yes No

10%

Yes
No

90%

Conclusion:

As shown in above charts out of 120 respondents 108 (90%) were aware of
Amul brand before Sumul’s brand name changed as Amul & only 10%
respondent are not aware of Amul brand before federation.

117
Q-8 Are you satisfied with recent existing Amul brand?

70
64
60

50

40
34
30

20
11
10 7
4

0
Highly Satisfied Satisfied Dissatisfied Highly Neutral
Dissatisfied

3% 6%

Highly Satisfied
28%
Satisfied
Dissatisfied

54% Highly Dissatisfied

Neutral

9%

Conclusion:

As shown in above charts out of 120 which are using Amul now, 75 (63%)
are satisfied and 38 (31%) are dissatisfied.

118
Comparison of Question 6 and Question 8:

BEFORE

1%
2%
Satisfied
Dissatisfied
Neutral

97%

AFTER

6%

31% Satisfied
Dissatisfied
Neutral
63%

Conclusion:
As shown in above charts before Sumul’s brand name change as Amul, 97%
respondents are satisfied and 2% are dissatisfied but after Sumul’s brand
name changed as Amul, number of dissatisfied respondents increased which
is now 31% and number of satisfied respondents decreased which is now
63%.

119
Comparison of Que-6 & Que-8 by hypothesis testing (Z-Test)

1) Null Hypothesis:
70% of the people were satisfied before Sumul’s brand name changed as
Amul.

Ho ≥ 70%

po = 0.70
qo = 0.30

Calculated Value

p1= Total no of Satisfied respondents / sample size

= 100/103
= 0.971

q1 = Total no of dissatisfied respondents / sample size

= 2/103
= 0.019

Standard Error =√ (p1*q1)/ sample size

= (0.971*0.019)/103
= 0.0135

Z = (p1-po)/standard error
= (0.971 – 0.70)/0.0135
=20.070

Tabulated value
At 5% significance level, value of z is -1.65

120
Conclusion:

Acceptance region (20.07)

Rejection region

-1.65

Calculated value of Z is greater than tabulated value of Z and it is in the

acceptance region as shown in above diagram so null hypothesis is accepted
that 70% of the people were satisfied before Sumul’s brand name changed as
Amul.

121
2) Null Hypothesis:
70% of the people are satisfied after Sumul’s brand name changed as Amul.

Ho ≥ 70%

po = 0.70
qo = 0.30

Calculated Value

p1= Total no of Satisfied respondents / sample size

= 75/120
= 0.625

q1 = Total no of dissatisfied respondents / sample size

= 38/120
= 0.3166

Standard Error =√ (p1*q1)/ sample size

= (0.625*0.3166)/120
= 0.04060

Z = (p1-po)/standard error
= (0.625 – 0.70)/0.04060
= - 1.8472

Tabulated value
At 5% significance level, value of z is -1.65

122
Conclusion:

Acceptance region
Rejection region (-1.8472)

-1.65

Calculated value of Z is less than tabulated value of Z and it is in the

rejection region as shown in above diagram so null hypothesis is rejected
that 70% of the people are satisfied after Sumul’s brand name changed as
Amul.

123
Q-9 Do you find that Quality has been decreased after Amul came?

63
62
62

61

60

59
58
58

57

56
Yes No

48%
Yes
No
52%

So, we can see by the above chart that 52% people believe that
quality has been decreased after Amul came & 48% people believe that there
is no problem in it.

124
Q-10 If you are not happy with current Amul milk’s performance
compare to when it was not changed, then what is the reason?

60
54

50
36 37
40

30

20 18

6 6
10
3
0
Price Thickness Smell Availability Taste Purity No problem

So we can see by this above graph that the main reason for not
satisfied with Amul milk is thickness & the price of the milk because out of
120, respondent 37 respondent are not happy with the thickness & 36
respondent are not happy with the price of the milk.

125
 SWOT Analysis of Sumul co. operative society.

1. Strengths

• There are more than 1500 Agent of Sumul milk so it is good sign
for distribution their milk.

• The main strengths is Asian No.1 Brand “Amul” is a brand name

of Sumul milk so it is very strong point for their competitor.

• There are all type of milk for teenagers, yonger & also older
people too.

• There is no problem of Raw milk because in critical situation

Amul provide them & help them.

• The competency power increased due to Amul big brand name.

2. Weaknesses

• Sumul have to follow rules of Amul particular in milk sector

i.e Sumul have to print Amul on the packet of the milk.

• Sumul have to forgot their Sumulya brand for the milk.

• It maybe possible that customer doesn’t understand the

Federation & their thinking taken them in a wrong way.

• Due to federation price of milk go high so it may be possible

That it is out of budget for so many people so selling will be
Decreased.

126
 3.Opprtunities

• We know that Amul is a big Asian brand so there are opportunity for Sumul
to reach at this stage.

• Problem of raw material will not arise in future due to Amul.

4.Threats

• We cannot ignore our competitors so there are Choryasi dairy milk there so
we have to focus on it.

• If customer doesn’t know about federation & Amul brand then it may be
possible that they will go for Choryasi milk.

• Reliance also want to come in this sector so it will be tough competition for
Sumul.

127
 Conclusion
The main problem of dissatisfaction in consumer mind is
thickness & price of the milk because before federation there was a milk
named Sumulya which was more fat than Amul milk & the price was less
than Amul milk.

128
 Questionnaire
To check the consumer mindset after Sumul brand
change as Amul brand.
Que-1
a.) Name-
b.) Address-

c.) Age
d.) Sex- 1.)Male 2.)Female.

Que-2
a.) Education-
1.) Illiterate
2.) Upto primary
3.) Secondary
4.) Graduate
5.) Post Graduate
6.) Other (specify)

b.) Marital status-

1) Single
2) Married
3) Widow

Que-3
a.) Occupation
1) Worker
2) Businessman
3) Housewife
4) Other (specify)
b.) Monthly Income
1) < 5000
2) <10000
3) < 15000
4) < 20000
5) > 20000

129
Que-4. Which milk you are using now?

1) Amul 2) Choryasi
3) Rajhanse 4) Loose
5) Other (specify)

Que-5. Which milk you were using before Sumul brand got change as
Amul?
1) Sumul 2) choryasi
3) Rajhanse 4) Loose
5) Other (specify)

Que-6. If Sumul brand was used, Were you satisfied with that milk?
Highly Dissatisfied Highly Satisfied
1. 2. 3. 4. 5. 6. 7.

Que-7. Are you Aware of Amul Brand before sumul brand change as Amul?
1) Yes. 2.) No.

Que-8. Are you Satisfied with Resent existing Amul Brand?

Highly Dissatisfied Highly Satisfied
1. 2. 3. 4. 5. 6. 7.

Que-9. Do you find that Quality has been decreased after Amul came?
1) Yes. 2) No.

Que-10. If there is the difference in Satisfaction Level then What are the
reason?
1) Price 2) Thickness
3) Freshness 4) Taste
5) Smell 6) Purity
7) Availability 7) Self Life
8) Other (specific)

130