1

SUMMER PROJECT REPORT

WITH REFERENCE
TO

THE PONDICHERRY CO-OPERATIVE MILK PRODUCERS’ UNION LTD.,

(PONLAIT)
Submitted by

BY
JASPER STEPHY.S
REGISTER NO: 422223631021
OF
SCHOOL OF MANAGEMENT STUDIES
SURYA GROUP OF INSTITUTIONS
VIKRAVANDI-605652
Submitted to the

FACULTY MANAGEMENT SCIENCE

In partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINSTRATION

ANNA UNIVERSITY

CHENNAI-600025

JULY-2024
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SURY A GROUP OF INSTITUTIONS

SCHOOL OF MANAGEMENT STUDIES

Vikravandi-605 652

DATE:

BONAFIDE CERTIFICATE

Certified that this project report titled "A SUMMER INTERNSHIP REPORT ON " THE
PONDICHERRY CO-OPERATIVE MILK PRODUCERS’ UNION LTD., (PONLAIT)is
the bonafide work of JASPER STEPHY.S (REGISTER NO: 422221631021) who carried out
the project under my supervision. Certified further, that to the best of my knowledge the work
reported here in does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any other candidate.

INTERNAL GUIDE DEAN

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DECLARATION

I here by state that the Project Report titled "SUMMER TRAINING REPORT ON THE
PONDICHERRY CO-OPERATIVE MILK PRODUCERS’ UNION LTD., (PONLAIT)"
submitted in partial fulfillment of the degree of Master of Business Administration is an original
work done entirely by me and is based entirely on my ownobservations. It has not previously
formed the basis for the award of any other degree, diploma, fellowship or any other similar title.
The facts presented here are true to the best of my knowledge.

Place: Vikravandi

Date: (JASPER STEPHY.S)

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ACKNOWLEDGEMENT

I take this privilege to express a few words of gratitude and respect to all those who helped me in
completion of project.

I would like to express my heartfelt gratitude to our Chairman Dr. P. GAUTHAMA SIGAMANI,
who enabled me to complete this project.

I feel obliged to Dr. K. BALAJI, Dean, School of Management Studies, Surya Group of Institutions
for his support and encouragement.

I thank MR. A MARIA FRANCIS XAVIERS HR MANAGER OF TARA MOTORS

(PIAGGIO), for helping and guiding me throughout the project.

I owe my achievement to the inspiration and kind guidance to my respected Mrs. RADHIKA
Assistant Professor, School of Management Studies. Surya Group of Institutions and I am thankful
for his sincere guidance as my Internal Guide to successfully complete my project.

I express my sincere thanks to Summer Training Work coordinator, Mr. ASHLEY DOMINIC
BENNY Assistant Professor, School of Management Studies, all other Teaching & Non Teaching
staff members of this School for their continuous monitoring and assessment

I take immense pleasure to thank all inspiring spirits behind the success of the project.

JASPER STEPHY.S
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ABSTRACT

This report is about our summer internship program done in The Pondicherry Co-operative Milk
Producers’ Union ltd., (PONLAIT). This internship was our first-time experience in the area of
over all study. This report contains the company profile, explains the supply chain management of
the company and findings of the study follow.

Ponlait promotes quality cow’s milk and milk products to offer consumer nutrition, health and
well- being. The main objective of this study was the departmental studies and how the
departments are functioning in the organization. I covered profile of company, the dairy industry
and overall departmental study in the given period and it was clearly explained in chapter II
follows.

And to study the rules, regulations and the employee practices, inside the firm. My own point of
view also included in this report. And then the conclusion for further study were discussed. This
report is basically a synopsis of all the work done by me in the duration of one month of summer
internship.
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CHAPTER CONTENT PAGE NO

1.1 INTRODUCTION 3

1.2 COMPANY PROFILE 4

1.2.1 HISTORY OF THE COMPANY 6

I
1.2.2 ORGANIZATIONAL CHART 7

1.2.3 PRODUCT PROFILE 8

1.2.4 ADDITIONAL INFORMATION OF THE 11

COMPANY

1.3 INDUSTRY PROFILE 27

2.1 OBJECTIVES OF THE STUDY 33

II 2.2 LIST OF DEPARTMENTS 34

2.3 OVERALL DEPARTMENT STUDY 35

3.1 FINDINGS 44

3.2 MANAGERIAL SKILLS IDENTIFIED 45

III 48
3.3 CONCLUSION

3.4 BIBLIOGRPAHY 49
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CHAPTER 1
INTRODUCTION

PONLAIT=PON+LAIT

PON= Pondicherry

LAIT= Milk going into the fold of private milk traders

The co-operative dairy established through the national dairy development board was
commissioned on 12th April 1971 at cost of Rs.23. 60 lakhs with financial assistance from the
Government of Pondicherry. Milk supply society had its prime objectives as serve to the urban
consumer with good quality milk. The Pondicherry co- operative society milk supply society was
converted in to Pondicherry milk producers’union with 46 primary societies affiliated to it and
the management of the dairy. The union started functioning with primary effect from 01.07.73
and primaries with effectsfrom 01.08.73.

The Pondicherry co-operative milk producer’s union had its origin as the Pondicherry co-
operative milk supply society during the year 1955. The supply society had 50 individuals’
members on its rolls. The union was the first co-operative society was registered in
Pondicherry

It’s still maintained its prominence amongst the co-operative societies in Pondicherry and it is the
apex co-operative society the supply society was unable to extent any good dealof input activities
to the producing members to encourage the milk production and was unable to impress upon the
consumers also on the quality aspects. The society thought of instantaneous milk cooler with a
capacity of 2500 liters to preserve the surplus milk.The supply society extended cash advance
and feed supply on loan basis to member from 1.
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1.2 COMPANY PROFILE

 The Pondicherry co-operative milk producer’s union Ltd (herein after called ponlait)
had commenced its functioning from 07.02.1955 as Pondicherry co-operative milk
supply society and was marketing the milk to the urban consumer only.

 Ponlait is the first registered co-operative society under the Pondicherry co-
operative societies Act, 1972.

 In view of processing the milk procured from the village before delivering same
to the urban consumers, a milk processing plant with 10,000 liters capacity was
installed with the help of national dairy development board in1971.

 The Pondicherry co-operative milk society was converted as the Pondicherry co-
operative. Milk producers’ union ltd No.p.1 in 1973.

 Ponlait had implemented the operation flood-1 and operation flood-2 schemeof the
national dairy development board to disseminate the concept of co- operative
movement in dairy sector by way of implementing a co-operative development
program, starting Amul pattern milk producers’ co-operative societies establishing
modern dairy plant, implementing women co-operativeleadership program, etc.

 Amul pattern milk producers’ co-operative society have been started across
Pondicherry and so far, 108 societies have been registered and of which, 101societies
are functioning effectively including 20 women milk producer’s co- operative
societies

 There is average 41,938 milk producers who enrolled themselves as members in

the societies functioning at village level of which around 7,605 milk producers are
inactive participation at present.

 The average milk procures by ponlait from the milk produced co-operative
societies every day is 82,300 liters and the same is collected through 25 bulk milk
cooling centers installed across Pondicherry region after subjecting the
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milk for instant chilling to maintain quality. About 18,000-20,000 liters per dayare out
sourced from the neighboring states to meet the market demand.

 Ponlait effects payment to the milk producers on fortnightly basis based on the
quality of the milk supplied by them (for FAT 4.2%, SNF 8.3% milk the rate is
Rs.34/- per liter which is Rs.2/- more when compared with tamilnadu milk
procurement rate) w.e.f.30.08.2019.
 Ponlait is implementing the Puducherry Government sponsored scheme namely
Sri Rajiv Gandhi breakfast scheme where in hot milk is served to theschool children
in all four regions of Puducherry union.

 Ponlait manufactures Amul brand ice-cream varieties on franchise basis since2009,

an agreement is executed for this purpose with the Gujarat co-op milk marketing
federation ltd. (GCMMF). Initially ponlait had stated manufacturing and supplying
Amul brand ice-cream of about 3000 liters per day in 2009and ithas now increased to
around 9000 liters per day in April 2016

 Ponlait is established an automatic stick line machine for manufacture of Amulice-

cream, coco bar, kulfi in a large-scale manner. Ponlait had sustained loss during the
past years due to non –revision of milk selling price for long periodand ponlait has
now recouped the accumulated loss of Rs.203.94 crores during the financial year
2021-22(unaudited)

 Ponlait is always committed in delivering the goods and services to the consumers
and it is endorsed by the food safety and standards authority ofIndia by publishing
the news in the times of India newspaper that the milk supplied by ponlait is the
purest milk from among the co- operative diaries through India in 2012.

 Ponlait availed the financial assistance from the co-operative department, Govt.
of Puducherry for dairy expansion activities and for 75%cattle feed subsidy
scheme to benefit the milk producers. Consequently, the milk production has
increased considerably. Funds are also availed through centrally sponsored
scheme for RKVY for infrastructure development, whichare highly necessary for
effective manufacturing /conduct of business.
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1.2.1 HISTORY OF THE COMPANY

In the institution was registered during the year 1995 as the first co-operative societyin
union Territory of Pondicherry in the name and style as ‘THE PONDICHERRY CO-
OPERATIVE MILK SUPPLY SOCIETY’

As time passed the supply societies has diversified its activity from the consumer toproducers
and concerned in increasing the milk production by giving various assistances /incentives to
the milk –producing farmers.

The union started the supply milk from the village producers on quality basis from 1970
onwards. To keep pace with the milk production, the milk union has also set upa dairy plant
with 10000 liters capacity for processing on 12.04.1971.

During the year 1973 the supply societies was converted into co-operative milk
producers’ union with the objectives of shifting its focus on the milk producing
community and its welfare.

With the success of the Amul , the National Dairy Development Board [NDDB] has
programmed to replicate the Anand pattern [collection the quality milk from the members
and payment of remunerative price in cash regularly and production enhancement inputs in
kind] all over the nation .The Pondicherry co-operative milkproducers union has also taken
up the world’s largest dairy expansion programmers,the ‘operation flood’ during the year
1982/95 With the launching of operation floodprogrammer the dairy plants was expanded
to 50000 Ltrs capacity per day. All the milk primary co-operative societies were transformed
to Anand pattern societies.

Ponlait has entered the MNEMONIC campaign conceived, implemented, promoted and
popularized by the Nation Dairy Development Board [NDDB] for the entire Dairy co-
operative of the Nation, with effect from 30.03.2002.

Thus, ponlait was committed to improve the economic and social uplift of the ruralfarming
/milk producing community and supplying the urban consumer with good quality milk.

The only institution in Pondicherry is pumping more than Rs.1.00 crore every monthto rural
economy in cash for the benefit of farming community, by way of milk purchase.
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1.2.2 ORGANISATIONAL CHART

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1.2.1 PRODUCT PROFILE

PONLAIT is producing three grades of milk.

 Toned milk

 Standardized milk

 Premium milk

The FAT and SNF value are different for each milk. The value is given below.
STANDARDS OF EACH MILK
MILK

TONNED MILK [Fat content is 3 percentage]and SNF [8.5] percentage.

STANDARDIZED MILK [Fat content is 4.5 percentage] and SNF [8.5] percentage
PREMIUM MILK [Fat content is 5.0 percentage] and SNF [9.0] percentage. Cream is added to
increase the FAT content whereas to decrease the FAT content skim milk is added. Skim milk is a
milk which contain 0.1 percentage of FAT, SNF is increased or boosted by adding skimmed milk
powder with the milk.
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PLANT LAYOUT

The milk processing plant shall have the following essential facilities

 Raw milk reception Dock [RMRD]- consisting of can conveyor, can washer,
weighing balance, dump tank etc.….

 Processing Hall –Cream separation, chiller, homogenizers, pasteurizer and other related
machinery are installed.

 Storage area –for milk storage tanks

 Product manufacturing area- depends upon the type of product

, quantity of milk handled and machinery to be installed

 Packing area –For packing of liquid milk and other product.

 Cold Storage – for keeping the milk products before sending tomarket

PROCESSING OF MILK

The dairy co-operative society collects milk from their members. In the societies, the society
workers check the quality of the milk from individual members of considering the FAT and
SNF [Solid with no Fat] content of the milk. The milk from each society iscollected and send to
the PONLAIT. PONLAIT receives the milk and perform certain tests to check the quality for
receiving and for further processing the milk.
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STEPS TO PROCESSING OF MILK

 Raw milk weighting by weighting machines

 Raw milk is put into the large containers

 Raw milk is going to chilling process by way of pipe chilling plant used for the
purpose of purify the milk and milk not get any waste.

 4 chiller units are side raw milk and other side- chilled water without mingle eachother
carefully.

 The boiling temperature of milk is 75-80 Degree. So, the powerful and harmful
bacteria are arrested.

 The raw milk are maximum 5hrs are in good condition. Then the milk is tested by La
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1.2.2 ADDITIONAL INFORMATION OF THE

COMPANY PRODUCT MENU

 GHEE

 THREE KINDS OF MILK

 PANEER

 STERILIZED FLAVOURED MILK

 KULFI

 ICE CREAM

 TURMERIC MILK

 CHOCO BAR

 BADAM MIX

 BUTTER MILK

 CURD

 SWEET LASSI

 ICE CANDY

 MILKPEDA
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PRODUCTS OF PONLAIT

GHEE:
Ghee is typically prepared by simmering butter, which is churned from cream
(traditionally made by churning the top most layer of dahi, which is also called Bilona
method), skimming any impurities from the surface, then pouring and retaining the clear
liquid fat while discarding the solid residue that has settled tothe bottom.

 Take 1000L of butter/ cream.

 Heat it in a temperature of 60-50°c for 8 hrs.

 Ghee is obtained with some residues which is filtered off and remaining is storedin heat
tank.

 At the time of need, it is packed and solid.

MILK PEDA:

Doodhpeda refers to the sweet made with milk. Hence also known as milk peda.

 60 lit whole milk is heated for 1hr and stirred continuously.

 It is condensed

 4kg sugar is added and mixed well.

 Boiled and continuously stirred for 45 mins

 Yield =12.5-13kg
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PANEER:

Paneer is a fresh acid -set cheese common in the Indian subcontinent made from cowor buffalo
milk. It is a non-aged, non-melting soft cheese made by curdling milk with afruit -or vegetable
– derived acid, such as lemon juice.

 60 lit of whole milk is heated at 90°Cfor 5mins.

 It is then allowed to cool at 70”C The coagulant such as citric acid 175ml isadded.

 Heat until it coagulated and hold it for 10 mins and then drain the whey.

 Pressing is done to make it solid finally it is cut into pieces and packed and stored.

STERILIZED FLAVOURED MILK;

The fruit flavored milk is now filled in cleared and sterilized bottles and then capped properly.
The filled bottles are then sterilized at 108-111°C for 25-30 min. The sterilized milk bottles
should be gradually cooled to room temperature. Finally, the sterilized milk is stored in a cool
place.

CURD:

Curd is a traditional yogurt or fermented milk product, originating from the Indian
subcontinent, usually prepared from cow’s milk, and sometimes buffalo milk, or goatmilk. It
is popularly throughout the Indian subcontinent.

 Homonated milk heated upon 92°C and cooled to 40°C.

 Culture is added at 39-42°C.
 Packed and stored in a cold room.
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ICE CREAM:

Ice cream is sweetened frozen food typically eaten as a snack or dessert. It may be
35made from milk or cream and is flavored with a sweetener, either sugar or an alternative,
and a spice, such as cocoa or vanilla, or with fruit such as strawberries orpeaches. It can also
be made by whisking a flavored cream base and liquid nitrogen together. Food coloring is
sometimes added, in addition to stabilizers. The mixture is cooled below the freezing point of
water and stirred to incorporate air spaces and to prevent detectable ice crystals from forming.
The result is a smooth, semi-sold foamthat is solid at very low temperature (below 2°C or
35°C” F). It becomes more malleable as its temperature increases.
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SWEET LASSI:

Sweet lassi, a yogurt based creamy, sweetened and chilled beverage from Punjabi
cuisine is a popular drink in northern India. It is usually served after the meal or in theafternoon
during the hot summer days as a cooling beverage.

KULFI:

Kulfi is a frozen dairy dessert originating in the Indian subcontinent in the 16thcentury. Itis
often described as traditional Indian ice cream” and is a traditional sweet of the Indian
subcontinent.

KULFI MIX:

 Take 320 Lit milk and add 37 Kg sugar

 To this add cashew (1kg),3kg pal beda and 800g of badam mix powder. This ismade
into mixture and poured into molds and cooled to form kulfi.

 This will form a total yield of approximately198kg.

BUTTER MILK:

Butter milk is a fermented dairy drink. Traditionally, it was the liquid left behind after
churning butter out of cultured cream. As most modern butter is not made culture cream but
uncultured sweet cream, most modern buttermilk is cultured separately. It is common in warm
climates were unrefrigerated fresh milk sours quickly.
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ICE CANDY:

Ice-candy is type of frozen refreshment ideal to heat of the summer. The two common
varieties of ice candy are fruit flavor and chocolate. Almost any fruit can be used to make ice
candy. In ponlait there are two types if ice candies like Orange and Mango. Icecandy process.

 Heat RO Water in mixing at 50°C

 Adding of sugar, liquid glucose and stabilizer

 Pasteurization at 75 to 85°C

 Chilling at 5 To 10°C.
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Product Picture:
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1.3 INDUSTRY PROFILE

Organization started Year: 07.02.1955
Place : Kurumampet, Puducherry.
Managing director : M. Jothiraju.
No. of. Employee : Around 1000.
No. of. Shift : 3 Shifts.
Overall Department : 10 Department.
Turnover Profit : Reached Rs 203.94 crore 2022-2023.

CONCEPTUAL FRAME OF INDUSTRY

DAIRY INDUSTRYAN OVER VIEW

Industry is one of the major constituents of the comprehensive term business which may
be defined as the regular or current production or purchase and sale of goods undertaken with
the main object of earning profit and acquiring wealth through the satisfaction of human wants,
and in terms of economics business may be described asa programmed of input [investment] and
out [return] aiming at the maximization of output with lowest input industry as a part of business
activity is concerned with the raising ,producing, processing, or fabricating products or services
with may be used either by the final consumers or by other industry units for further production.

Industry may broadly, be classified into four types ’viz…’[a]Extractive [b] Genetic
[c]manufacturing and [d]constructive industry. Historically, they may be categorized into
[a] primary or natural industry and [b] factory industry. In the former are included [1] Hunting
Fishing [2] animal husbandry [3] Forestry [4] Agriculture [5] Mining [6] and all other industry,
which use, predominantly natural resources as the basis for their productivity activates and
whose products are utilized mainly by the ultimate consumers. while the later covers those
industries which undertakes, on massive scale, conversion of raw material into finished products
by extensive use of plant and machinery metallurgical industries, engineering industries, textile
industries, chemical and allied industries, food industries, generation and distribution of
electricity, etc. in the process of industrialization, the primary industries get gradually and
progressively submerged with the factory industries.
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Dairy industry occupies an important place in animal husbandry. It embraces the production of
milk, its preparation for sale as well as the manufacturing of dairy products. The central statistical
organization, department of statistics, Government of India, have under the annual survey of
industry, classified dairy industry under industriesmajor group -20, Food manufacturing industry.

A dairy depends on milk. Milk is raw material for dairy product. Milk is the natures
perfect food for all ages. It has almost all the vital nutrients needed for growthand well-being of
the human body.

Milk is the richest sources of calcium and essential amino acids which is good for
bones formation. It is particularly beneficial for people recovering from the sickness,children
sport person, aged ones, women etc.

The dairy industry of India has grown from an almost completely unorganized but vastly
complex industry of a long magnitude to an organized industry during the last 55years with an
annual milk product of about 29 million metric tons in the year 1979-80. India’s milk production
in 2001 is forecasted at the 81 million tones. In India it took nearly 30 years to achieve self-
sufficiency in the milk production. The country had produced 123 million Tons of milk in the
2010-11,127.9million tones in the 2011-12 The annual growth rate for production of milk is
increased about 5 percentage in the 2011-12 as compared with 2010-11. India continued to rank
third amongst the countries of the world. The first two positions begin held by Union of Soviet
socialist republics and United State of America.

The dairy development in India has twin objectives total milk supply on commercial
basis and diversifying agriculture structure by developing dairy as a supplementary or the
principal occupation which would help in increasing the income of the small and marginal
agriculturists and /or land less laborer. Dairy industry occupies an important place in Indian
economy. It embraces the production of milk its preparation for sales as well as manufacture of
dairy products.

The growth of Indian dairy section has been spectacular during the past three decades.The
Indian dairy industry is not only a vital producer of an essential food items but it also one of the
largest employers in the country in the both the rural sectors as well as the semi urban and urban
region. It gives an opportunity to about eight crores’ families across India.
 33

Apart from the nutritional important of milk for human consumption, dairying
provides employment to the vest numbers of person with no means of production of their own
and out them to productive work so as to enables them to contribute to the nation product and
earn their share in it. It processes tremendous the gain and thus assists even the weakest section
of our society. Further, milk is one of the few commodities which gives the producer a large
share of what the consumer pays for it.

Thus, dairying is a very important instrument for the upliftment of the rural economy of
our country. Dairy development on a modern life will generate additional income and
employment in rural areas itself and can act as effective instrument for social change inrural India.

The composition of the milk production in India has been dominated by buffalo milk
with 76 percent of the total milk production as compared to 94 percent of cow milkin the total
production of milk in the ward. Although much buffaloes have come to be comparatively more
prolific milk producers in India. The importance of cow continuous as a supplier of cheap milk
as also bullocks. Livestock keeping in general and dairying in the particular has been the
integral party of Indian agriculture. In additional dairying provides a source of nutrition and
additional income to our farmers.
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DAIRY INDUSTRY OVER THE TIME

Traditional Dairying;

Traditionally all the milk in the past had been produced in the villages in India. Even
today the bulk of the country’s milk supply comes from the cattle owners in the rural areas. In
the old days the farmers produced milk usually for their own consumption. Most of the milk
was converted by them into butter, ghee and butter milk, which constituted important food items
for the family. As marketing facilities for milk did not exist in those days the supply milk was
generally turned into ghee for sale in the villageor in the near –by town markets.

Modernization of dairy industry;

Modernization of dairy industry in India gained momentum with the commencement of

India’s first five-year plan in 1951.With the aim of catering to the requirement of clean milk for
the growing population in urban area the initial government action in this regard consisted of
organizing milk scheme for the large cities. The basic objectives of these scheme were to facility
arrangement for the efficient flow of milk produced in the rural areas to the dairy plants located
in the cities and distribution of the processed milk to the urban consumers.

Co-operativization;

The establishment of milk co-operatives is another feature of the modern dairy industry in
India. For successful functioning of economic enterprises in our village, it is necessarythat they
are given to a corporate identity. In most developed countries, co-operative have emerged as
the most cohesive organization of farmers. they provide the middle course between the
acquisitive and individualistic trend of centralization and regimentation on the other. They have
the merit of combining freedom and opportunity for the small man with benefits of large-scale
management and organization as also good –will and support from the community.

In India, though the co-operative movement was initiated by the co-operative creditsocieties
Act,1904, dairy co-operative could not be promoted till the passing of the co- operative societies
Act,1912. Though with the establishment of the first co-operative dairy societies at Allahabad
[U.P] in 1913, the movement of dairy co-operative got initiation and spread subsequently in the
different parts of our country.
 35

BELIEFS IN DAIRY BUSINESS

Further to my interaction with scores of people thinking of entering dairy business all across
[especially India] the country, it was quite evident that the general beliefs are;

1. Dairy farming is an easy business;

This is because dairy farming is done by a farmer, who is most cases is not much learned and
has been doing this business for quite a lot of year and is making money.

However, the main constraints in his dairy farming are that he has been following the traditional
methods in everything viz.., feeding and management [which comprises morethan 80 percentage
of farming costs] by virtual of which he is not in profits but just making both ends meet along
with little help from his agriculture income. This business is easy provides you are well aware of
the basics and are able to apply scientific methods which can help improve the overall profitability.

2.Animals provides milks throughout the year;

The animal provides milk only after it gives a calf [offspring] and not otherwise. On an average
a cow gives milk for 270-300 days whereas the buffalo provides it for 240-270days. The period
called lactation is followed by a dry period [during which it does not gives milk but just eats] is
called as intercooling period after which she gives birth to the next calf. In India the average
intercooling period in cow is around 450 days and in buffaloes its 500 days or may be more also.

3.dairy business break even in the first year;

As in all business dairy business does not break even in first year. The main cost in dairy
farming are;

A. Capital cost; For purchase of animal, construction of shed and purchase of machinery,
cans etc. this cost occurs only once and is depreciable over a periodof time totally

B. Administrative costs; It includes appointment of a farm manager, supervisor, skilled

and unskilled labor depending upon the requirement as well as the sizeof the farm. This
is a fixed cost for a certain period

C. Recurring cost; It includes the feeding and management along with vaccination,
insurance, treatment, AI and other miscellaneous costs. This is required dairy andis liable
 36

to fluctuate all times. It will be essential to control these costs which will have a direct
bearing on the production [of milk] as well as reproduction [birth of next calf]

4.dairy business can be done by being dependent on labors;

This is possible provided that the owner is aware of all the intricacies as well as theloopholes
in dairying. It is a well-known fact that any labour is not all concerned with profitability but
[ his] net at the end of the month. As such he is likely to use hisown parameters for optimizing
the profitability of the farm. Thus, it will be extremelyimperative for the owner to know and
understand all the details of dairy farming before starting the same. This will enable him to
guide his labour towards the right path and help in minimizing the losses.

Development and growth:

The dairy co-operative movement in Gujarat is similar to the co-operative movementin India.
AMUL is the pioneer of the dairy co-operative in Gujarat and in India also.
The Kaira district milk producers’ union which is known as ‘AMUL DAIRY’ – ANAND
was started in 1946. In the starting the Amul dairy collect just 250 litres of milk per day
with the help of two co-operative societies of the Union. due to Amul dairy farmers were
obtaining fair and sufficient reward on the basis of fat content of the milk. They were paid
promotion also.so more and more farmers joined the union, and the union got much strength.
It turned today around more than 20 lakhs litre perday, being collected from 1163 village co-
operative societies with the help of 634675farmer members.
 37

CHAPTER :2

2.1 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:
The main objectives of the study is to have a particular knowledge about the functional
organization.

SECONDARY OBJECTIVES

 To know the working condition of the employees

 To identify the factor which are influencing the employees’ satisfactory levels

 To identify the level of opportunities for employee’s development.

 To gain particular knowledge at various department in ponlait.

 To know about the overall department of the company.

 To understand the duties and responsibility of various department heads.

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2.2LIST OF DEPARTMENTS

 DAIRY PROCESS

 MILK PROCUREMENT AND INPUT

 MAINTAINANCE

 DAIRY ADMINISTRATION

 PURCHASE

 QUALITY ASSURANCE

 PRODUCTION

 MARKETING

 HUMAN RESOURES MANAGEMENT

 EFFLUENT TREATMENT PLANT

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2.3 OVERALL DEPARTMENT STUDY

A. MILK PROCUREMENT

Day: 3 days

Ponlait is operating in the Pondicherry Region with 98 affiliated function dairy co-operative.

There are 10,000 cattle owners who become members in the dairy co-operative societies at
village and supplying milk to ponlait.

Milk supply members are paid fortnightly in cash with remuneration milk price at Rs.
30.00 per liter for [4.2 percentage and 8.3 percentage SNF] w.e.f 27.11.2014.

The primary responsibility of procurement and input section is to procure clean and quality
milk from village cattle owners and carryout milk production enhancement services.

To achieve this objective, the procurement and input wing is conducting various programmers
like clean milk procurement at Dairy co-operative societies.

Besides the main activity, the milk supplying members’, milch animals are also provided
with cattle Feed Green Fodder and artificial insemination at subsidize rate.

The total demand for milk [both consumer and school children supply put together will be
1,10,000 Ltrs per day] of which 55 percentage met from primary society source and
remaining 45 percentage was sourced from Aavin-Tamilnadu, Nandhini–Karnataka and
private Dairies.
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B.MILK PROCESSING
Day:3 days

The present handling capacity of the dairy plants is 50,000 Liters per day. However,1,00,000
to 1,25,000 Ltrs of milk was handled per day.

Two varieties of milk namely Toned milk and standardized milk are packed as per the
consumer requirement. The dairy consumer demand is met fully. Present demand is 1,10,000
to 1,15000 Ltrs per day. Toned milk Fat 3.0 percentage SNF 8.5percentage at lit 38.00 and
special Toned milk Fat 4.5 percentage SNF 8.5 percentage at Lit 42.00.

The dairy supplying Toned milk of 6000 ALPD [Annual average] to school childrenunder Sri
Rajiv Gandhi School Children Breakfast Scheme.

Beside milk processing and grading, the dairy is equipped to produce 15 MTS ofghee and
5000 Kgs of Khoa [milk peda] monthly. The ponlait ghee and Khoa aremust sought after
products in the Pondicherry town.

The dairy is producing 3000-4000 bottles of flavored milk and during summer seasons 7000-
8000 packets of butter milk every day and sells in Pondicherry town.

The dairy is also producing paneer, ice cream, Kulfi, Choco bar, Ice Candy, Badammix and
Curd as per the requirement of the consumer as and when needed.
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C. QUALITY ASSURANCE

Day:1 day

Since the milk is highly perishable commodity proper care is taken to maintain quality of
the milk right from the point of production to the point of consumption. Atvillage level, the
milk poured by the individual member producers is tested at the primary society.

The milk tested the quality at society level reaches the bulk milk cooling center. Theraw milk
is tested organoleptically at the BMC for then the individual societies sample are tested for
its fat content and other microbial standards.

The children milk reaches dairy and processed milk is sample at every point of storage during
the process and proper care is taken to maintain quality standards.

Finally, the different varieties of milk are graded and kept ready for packing to the
consumers. The pouched milk samples are randomly tested for its shelf life after dispatch
to the consumer. Presently the milk is dispatched to the market at 5 degrees centigrade
in three varieties viz Toned milk 3.0 percentage FAT 8.5 percentage SNF, special Toned
milk 3.5 percentage FAT 8.5 percentage SNF andstandardized milk 4.5 percentage FAT
8.5 percentage SNF [SNF – Solids nonfat]as on date.
Day in and day out, maintaining the quality of quality of milk receives the top priority.
 42

D. MARKETING

Day:4 days

The Pondicherry co-operative milk producers ‘Union is operating in the Pondicherry

market, selling three different varieties of milk categories to the different segments of the
market, under its brand name ‘’ponlait’’.

Ponlait is the number one milk brand in one Pondicherry town. Though there are many
private players in the market, ponlait is the major market shareholder a marketsurvey finding
indicates that the present market share of ponlait is around 60 percentage.

The present average market throughput is 1,10,000Ltrs /day [ including school milksupply].
It is anticipated that the sale curve may touch its peak [1,25,000Ltrs monthly average]
during year 2013.

To cater the urban population 190 retail outlets are operated by the retail sales agents.
The retail outlets are supplied with milk through a network 25 milkdistribution routes daily in
the morning and the evening.
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E. MILK PRODUCTS

Day:2 days

Besides the union is also running thirty-five [54] milk parlours to sell milk and milk
products. Milk is made available to the urban consumers ,24 hours a day through 24 such
parlours. Ponlait is marketing milk products through parlours to Amul in the name of Amul
brand nearly 125 lakhs per month.

Ponlait also produce and co-pack Amul ice cream in its production facility andsupply to
Amul.

F. CATTLE FEED

Days:2 days

Ponlait owns a small cattle Feed plant of 30 MT/ day capacities in Thattanchavady industrial
Estate.

Compounded cattle Feed is produced with cost effective ingredients and supplied to the
members on no profit basis.

Ponlait is production 50 Kgs of Feed out of the total cost of Rs 1000/- per baggovernment
subsidy 75 percentage.

The present monthly production and supply is 300 MTS.

In addition, Cattle Feed is supplied to neighboring Villupuram District Dairy also. The
cattle Feed produced in the Feed mixing plant is tested batch wise.
The balanced compounded cattle Feed produced in the ponlait Cattle Feed plant isproved to
be effective for animal health and quality milk production.
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G. ADMINISTRATION

Day:3 days

The ponlait Administration is vested with the committee of management comprising 12

elected representatives from the presidents of dairy co-operativesocieties and a nominee
from National Dairy Development Board, co-operativeDepartment and Department of
Animal Husbandry and managing director of theMilk Union.

Since the committee of management is dissolved the administrator manned by a Deputy

Registrar from the co-operative department is looking after in lieu of the board of
management with effect from 06.09.2002.

As per the order of the high Court, Chennai, an Advisory Board with the following three
members have been constitution by the RCS IN order to guide the Administrator by
making major policy decision and other administrative matters.

At present 350 employees in various cadres are working in the Union.

HUMAN RESOURES MANAGEMENT:

Day:2 days

The department assure that the organization will have adequate of qualified person,available
at the proper times, performing jobs which meet the needs if the enterprisesand which provide
satisfaction to individuals involved. Its function is to develop an organizational sub unit must
be strong and contribution to organization, health, dynamism and employee’s pride. There are
totally 924 employees working in ponlait milk co-operative society, Pondicherry.

Recruitment and selection:

 The employees are recruited by help of employee’s exchange by means of theboth

private and public.

 The company provides applicable wages, salary and incentives are provided.
 45

 HR Manager ensures the behaviors of employees through a visit inside thefactory

once in a month.

Duties of HR

Position summary:

Human resource rotated duties at the professional level and may carry out responsibilities in
some are all of the following functional areas:

Recruitment.

 Recruitment.

 Employee relation.

 Training and development.

 Compensation.

 Benefits.

 Safety program

 Affirmative action and

 Employment equity program

Knowledge and skill:

Consideration knowledge of principle and practices of personnel administration, effective oral

and written communication skills, excellent inter personal skill, ability toorganize and prioritize
work.

Leave policies:

Attendance and leave policies of the company. One of the employees in the year 30days with
salary in EL (Earned leave).

Medical leave 15 days

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Casual leave 12 days

Types of employees:

 Regular employee

 Consolidate employee

 Casual employee

Salary:
 Consolidate employee- 13,500 p.m.

 Regular employee – They paid with 7th pay commission

 7th pay Commission consist of only in PONLAIT

 Basic pay

 DNS allowances (Dearness allowances)

 House rent allowances

 Travelling allowances

 Risk allowance

No. of workers:

 Regular employee – 668

 Consolidate employee – 198

 Casual employee – 70

 Total employee -924

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Workers shift timings

Three shift namely first, second, nigh/t shift conformably all hour’s work.

 First shift – 6.00am to 2.00pm

 Second shift- 2.00pm to 10.00 pm

 Night shift- 10.00pm to 6.00 am

FINANCE DEPARTMENT:

Day:3 days

 Monthly income 50,00,000

 Annual income 23,00,00,000

The finance department if the business takes responsibility for organizing and accounting
affairs, they including the preparation and presentation of appropriate accounts, and the
provision of financial information for management for managers. It is responsibility for
preparing Journals, ledgers, statement like trial balance, balance sheet cash flow statement.
 48

CHAPTER III

3.1 FINDINGS

 Customer trust on brand of product and name of company while purchasing the product.
 All the department’s records should be maintained properly.
 All the departments in the organization function without any issues
 The company has to inform the customer about their product through advertisement.
 The milk products are mostly used in the form of ghee and are mainly used for consumption
 The availability of milk product can be extended to some more areas in order to make it
widely available.
 The consumer feels that the readily available and attractive package may improve sales
 There are a large number of demands for the milk Khoa. So, the company can increase the
supply.
 Employees are dissatisfied while working in night shifts.
 Employees are interested to give their opinion for future outcoming products.
 The attendance is maintained in note-book as well as systematic way on daily basis.
 Majority of the employees are found to be male
 There is good transportation facilities available for the employees and as well as the
products
 The degree of freedom to the employees should be high, so that they can perform well in
their work.
 The company has been able to deliver a good quality and tasty products are reasonable and
are available at affordable prices.
 49

3.2 MANAGERIAL SKILL IDENTIFIED

INPUT AND PROCUREMENT: Department techniques and condition for Procuring

milk.
PRODUCT DEPARTMENT: Product process and to preserve the milk.

QUALITY DEPARTMENT: Technique to check the milk in different method andhow

to maintain standard of milk.

ADMINISTRATION DEPARTMENT: To satisfy the employees to check the behavior

of the employee and manage the human wealth

MARKETING DEPARTMENT: Cash strategy and to distribute the product

 50

EFFLUENT TREATMENT PLANT:

The dairy industry required large amount of water, which clearly indicates the need
of effluent treatment to improvise operations an comply with environmental regulations.

EFFLUENT TREATMENT PLANT

The dairy industry required large amount of water, which clearly indicates the need
of effluent treatment to improvise operations an comply with environmental regulations.
 51

PROCESS:

1. The effluent reaches ETP from all streams and is homogenized in equalization tank
air agitation is provide in the tank to ensure homogeneity

2. Further its subjected to bar screen chamber, oil in grease trap. The water is nowallowed
to stand in the scum removal tank where efficient removal of all grease, scum, and
floating material form the water surface takes place. This physically treated water is
now collection tank

3. The water is now sent to aerobic digestion and the bacterial culture is addedleading to
the process of aerobic digestion, when bacteria rapidly consume organic matter and
convert it into carbon dioxide solids is reduced.

4. Air is pumped through the tank and the content are stirred to keep it fully mixed.

5. The treated water is further sent to the setting tank where the bacteria is allowedto
settle the remaining sludge is sent to aerobic digester and the treated water is now
stored for further use

6. The settled bacteria are again sent to the aerobic digester and the treated water isnow
stored for further use.

7. The major effluents in the dairy industry are suspended and dissolved solids which
result in high level of BOD (biological oxygen demand and COD [chemical oxygen
demand]
 52

3.3 CONCLUSION:

PONLAIT, a firm that has been able to prove its strength in the dairy industry. The
company has been to cover all types of customers in Puducherry. Now, the products of
PONLAIT have become a household name. From this study the organization overall such as;
Technical collaboration, Human Resource functions, Production functions and Marketing sales
functions are also studied. They also use formal customer satisfaction measurement programs
that provide routine opportunities for their customers to tell them what they like or more
importantly, what they don’t like about dealing with PONLAIT products. If possible, based on
all the various factors, they can decrease the price of certain PONLAIT milk products to increase
their sales and fulfils the customer perception.

This summer study was carried out to mainly to gain insights about the organization
structure and its overall management functions in The Pondicherry Co-operative Milk
Producer’s Union Ltd.., PONLAIT. And the company’s functioning is continuously upgraded
through their practices thereby reiterating the company’s commitment to produce good quality
and keeping the products available all-around Pondicherry. The company should have proper
financial planning and management to develop the long-term solvency position, otherwise there
is a chance of continuous loss.

Even though the company have all the resources in a sufficient manner, they should
utilize those resources in a proper manner so as to make the company profitable one for a
longer run. The company should give proper training to their new workers and also to their
average output producer and we found out that the organization was the chill mill management
 53

3.4 BIBLIOGRAPHY:

o Armstrong, Michael, 1977, Human Resource Management practice,7th editionGreat

Britain; Kogan page Limited,922p,
o Armstrong, Michael and Brown, Duncan, 2006, Strategic Reward,1st edition, Great
Britain; Kogan Page Limited,266p,
o Bardwell, Julie and Claydon, Tim ,1994, Human Resource Management, 5th edition
o , Great Britain; Pearson Education Limited, 694 p.
o Beck, Robert C.1978, Motivation Theories and principles, 1st Edition, prentice HallInc,
470 p.
o Kirk, Jerome and Miller, Mark L. 1986, Reliability and Validity in Quantitative
Research, 1st edition. USA; Sage Publications Inc, 87p.
o Redmen, Tom and Wilkinson, Adrian. 2001, Contemporary Human Resource
Management, 2nd edition. Pearson Education Limited, 528 p

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