Report on Mother Dairy

MOTHER DAIRY

REPORT ON PRODUCTION PROCESS OF MILK IN MOTHER DAIRY

PATPARGANJ, NEW DELHI OVERVIEW OF THE COMPANY Mother Dairy – Delhi was set up in 1974 under the Operation Flood Programme, a wholly owned subsidy of the National Dairy Development Board (NDDB), whose current chairman is Dr. Amrita Patel. The company markets more then 2.2 million litres of milk daily in Delhi and surrounding areas of Western U.P. and Haryana, Mumbai and Hyderabad. Mother Dairy Mill has a market share of 66% in the branded sector in Delhi where it sells 2 million litres of milk daily and undertakes its marketing operations through more then 10,000 retail outlets. The atmosphere of the industry is very calm and health and is rich in various varieties of flora. Mother Dairy is one of the largest liquid milk plants in Asia. Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Mother Dairy’s objective is to: (a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices. To ensure this Mother Dairy operates such that the farmer gets 85% of the total cost of sales. (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable. At Mother Dairy, processing of milk is controlled by process automation whereby state-of-theart microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. In addition to its market leadership in India, Mother Dairy is also active in the global arena, exporting its range of dairy products to various international markets. Mother Dairy is an IS/ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Moreover, its Quality

Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology, Government of India.

Management System Policy Of The Company Their commitment is to excellence. The evolving needs of their customers drive them to continual improvement in their processes and systems. They are committed to:  Apply state of the art technology and processes to enhance productivity that ensures quality at a competitive price.  Apply processes to clean production, pollution prevention and optimize resources utilization in all operations.  Follow food safety management system and apply HACCP (Hazard Analysis Critical Control Points) principles to provide safe products to customers.  Develop and empower own people for maintaining a vibrant working environment, which encourages excellence.  Company with appreciable regulations and legislations. They pledge themselves towards providing quality and safe products under clean and hygienic environment.

PRODUCT RANGE BRAND NAME

TYPE OF PRODUCT

ITEMS

MOTHER DAIRY

Milk and its product

Packaged Milk (Full Cream, Standardized, Toned, Double Toned Skimmed and Probiotic), Butter, Dahi, Ghee, Cheese, IceCreams, UHT Milk, Lassi & Flavoured Milk.

SAFAL

Fresh and frozen fruit and Fruits, vegetables, rice processed item (jams, juices, ketchup, pulp, vegetable products etc.)

DHARA

Edible oil

Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil.

Mother Dairy's range of products include the brands Mother Dairy (milk, milk products, curd, ice cream, butter, dairy whitener etc), Dhara (range of edible oils) and Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices). Mother Dairy Foods Processing Ltd offers the following products: Mother Dairy markets dairy products like Liquid Milk, Ice Creams, Flavoured Milk, Dahi, Lassi, Mishti Doi, Ghee, White Butter, Table Butter, Cheese, SMP, Dairy Whitener, UHT Milk, Dhara range of edible oils and the Safal range of fresh Fruits & Vegetables, Frozen Vegetables and Fruit Juices at a national level, through its sales and distribution networks, for marketing food items. Mother Dairy milk (Bulk Vended Milk) is fortified with vitamin A @2000 IU per litre of milk as a part of social accountability. This program was started with the Mother Dairy, Delhi, since February 1980and there after Mother Dairy is continuing this program on their own as a social responsibility without having any financial assistance from the Government as well as since it is felt that BVM is generally consumed by the middle / lower middle / poor strata of the society. It is also found that the dietary practices adopted by these classes are deficient in Vitamin A. Mother Dairy sources significant part of its requirement of liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products.

AVAILABILTY OF PRODUCTS IN MARKET Packaged MILK is available in 5 different varieties 1. Full Cream milk - milk fat 6%, SNF 9% 2. Standardised milk - milk fat 4.5%, SNF 8.5% 3. Toned milk - milk fat 3%, SNF 8.5% 4. Double toned milk - milk fat 1.5%, SNF 9% 5. Skimmed milk - milk fat 0.5%, SNF 8.7% Other than packaged milk, Bulk Vended Token Milk is also available which is distributed through vending machines installed in different regions of the city. The high quality variant of milk is also available under the brand name ok ‘MILK’. It is thick & completely natural, containing no preservations. It is referred with name of UHT (Ultra Heat Treatment) Milk. Mother Dairy also manufactures flavoured milk under the brand name of ‘CHILLZ’. It is available in three flavours namely Kesar, Elaichi, Vanilla and Chocolate flavour.

Various MILK products offered by Mother Dairy Various milk products of Mother Dairy are: 1. Mother Dairy Ghee 2. Mother Dairy Butter 3. Mother Dairy Cheese 4. Mother Dairy Dahi (Curd) 5. Mother Dairy Lassi Except all these milk products Mother dairy also manufactures Ice Cream under two categories namely CHILLZ and Mother Dairy Ice Cream.

PROBIOTIC It is the latest product range launched by Mother Dairy. It mainly contains BB-12 friendly Bacteria which results in better digestion and absorption of nutrients. It also contains probiotic fibre which also results in better digestion. The various products in this category are: 1. b-Activ Probiotic Dahi 2. b-Activ Probiotic Lassi 3. b-Activ Curd 4. Nutrifit (Strawberry & Mango)

SAFAL Range of fresh foods & vegetables, frozen vegetables, fruit pulps and fruit juices etc.

DHARA It has a popular range of edible oils in different types as refined soya bean oil, refined sunflower oil and filtered ground nut oil etc.

MILK PROCESSING PROCESS

Milk brought from regional collection centres through insulated milk vans/trucks.

Milk is then tested on 15 quality standards and is then stored in refrigerated silos (vertical containers).

Milk is then heated and is then ‘Clarified.’ The Clarifier spins out (centrifugal force) the physical impurities present in the milk. As the milk originates from different animals it is ‘Standardized’ i.e. the total fat and SNF percentages are brought to desired levels as per the prescribed norms.

Milk is then ‘Homogenized.’ In this process the large fat globules are broken into tiny fat molecules thus, giving milk a uniform consistency and making it whiter in appearance.

Milk is then subjected to the process of ‘Pasteurization.’ The milk is first heated to 75°C for 15 seconds and Milk is then fortified with various then is rapidly cooled to 4°C thus Vitamins and Minerals depending on killing all the pathogens in the milk, the type of milk. It is then sent back without disrupting the taste and to the silos or packaged. nutritive content.

Milk Procurement Milk is received through insulated road/rail tankers at a very low temperature thus retaining its freshness. The milk then undergoes more than 15 stringent quality tests before it is stored in silo’s (vertical milk storage tanks) for further processing. Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. The Operation Flood programme helps both farmers as well as the city consumers. The programme ensures that the farmers get a fair price for their cow & buffalo milk and the consumers get best quality milk at reasonable prices. Milk is received from farmer cooperatives through insulated road/rail tankers at very low temperature in order to retain its freshness.

Milk Distribution 79 tankers in the morning and 75 tankers in the evening bring in milk from the regional collection centres. After collection the same tankers are utilized for the delivery of the processed milk to the vendors and outlets. Mother Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of these outlets place their demand by raising an invoice one day in advance. The demand is also calculated using the ‘Calendar’ Scheme, in this depending on the pre-calculated seasonal demands the outlets place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so

that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are equipped with HAM radios. Distribution Channels: a) Token Distribution: Also, termed as “Lohe ki bhains” (metal buffalo), is an automated milk vending machine. b) COW: Container on Wheels or COW is a manual milk distribution program in which cycle-rickshaws are employed for milk distribution. c)

Retailers: The packaged milk is distributed via the retailer network throughout the city.

Processing Of Milk At Mother Dairy, processing of milk is controlled by process automation whereby state-of-theart microprocessor technology is adopted to integrate and completely automate all functions of the milk processing areas to ensure high product quality/ reliability and safety. Mother Dairy is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Moreover, its Quality Assurance Laboratory is certified by National Accreditation Board for Testing and Calibration Laboratory (NABL)-Department of Science and Technology, Government of India. Also here, the processing of milk is done through state-of-the-art microprocessor technology which integrates and completely automates all functions of milk processing and ensures high product quality, reliability and safety. The various stages of milk processing are given below :

Clarification The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier spins the milk at a very high speed, removing all dust particles that are invisible to the naked eye.

Standardization Milk from different breeds of cows and buffaloes varies in its composition, it is standardized by raising or lowering its fat and SNF percentage to a desired level, so as to deliver the milk to consumers as per prescribed PFA norms.

Homogenization In the process, the milk is subjected to a very high pressure due to which the large fat globules present in the milk are broken into tiny droplets. The milk fat gets evenly distributed and milk appears whiter and thicker. Milk is homogenized for consumers who do not like creamy layer on the top. Homogenization improves palatability of milk.

Pasteurization

In this process, the milk is heated at 72 degrees for 15 seconds and then is rapidly cooled down to 4 degrees. This process kills all the pathogenic bacteria present in the milk making milk safe for consumption. Pasteurization unlike boiling does not effect affect the nutritive value of the milk. Pasteurization, named after French Scientist Louis Pasteur who invented the process was first applied to milk by Dr. Soxhlet of Germany.

Fortification With Vitamin ‘A’ Homogenized Toned Milk during processing is fortified with vitamin ‘A’. The deficiency can lead to night blindness and skin horning.

Homogenisation At Mother Dairy the milk is also homogenised. This ensures that the customers get uniform amount of cream in their milk. In this process the milk is pumped at a very high pressure turning the cream into tiny droplets thus distributing the fat through out the milk. These droplets do not float to the surface to form a creamy layer. That is why no creamy layer appears when Mother Dairy milk is boiled at home. Mother Dairy shops sell homogenised toned milk which contains minimum 3% fat even though you cannot notice it.

Ensuring Quality After processing, milk is dispatched in hygienic and sterile milk tankers or packed in high grade material and transported under cold chain to your nearest milk booth. Everyday, as part of quality assurance process, milk samples are collected from milk shops randomly and are tested. The above processes helps in maintaining stringent quality standards in order to ensure that the milk you get is fresh, pure and healthy. Mother Dairy is an IS/ ISO 9002, IS 15000 HACCP and IS 14001 EMS certified organization. Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP, 2002 RvA (Food Safety Management Systems) and ISO 14001:2004 (Environmental Management Systems) Certifications. Moreover, National Accreditation Board accredits its Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration Laboratories, Department of Science and Technology, Government of India.

Quality Control Stringent quality control methodologies are employed in Mother Dairy. a) The milk is tested for adulterations and quality at the time of collection from the farmers.

b) The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 7°C and is subjected to 15 product and quality checks. c) The Milk quality is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 5°C always. d) Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again. e) The temperature of milk in the delivery trucks is always maintained less than 7°C. f) All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution. g) Since all the employed processing procedures are automated, no contamination by human hands takes place. h) To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours.

Distribution Of Mother Dairy Products : Mother Dairy markets approximately 2.8 million liters of milk daily in the markets of Delhi, Mumbai, Saurashtra and Hyderabad. Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2.3 million liters of milk daily and undertakes its marketing operations through around 14,000 retail outlets and 845 exclusive outlets of Mother Dairy. The company’s derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. Mother Dairy ice creams launched in the year 1995 have shown continuous growth over the years and today boasts of approximately 62% market share in Delhi and NCR. Mother Dairy also manufactures and markets a wide range of dairy products that include Butter, Dahi, Ghee, Cheese, UHT Milk, Lassi & Flavored Milk and most of these products are available across the country. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Company’s modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent EOU, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-the-art fruit processing plant has been set up at Bangalore with fruit handling capacity of around 250 MT per day.

Management System Policy

1. Apply state of the art technology and processes to enhance productivity that ensures quality at competitive price. 2. Apply processes for clean production, pollution prevention and optimize resource utilization in all operations 3. Follow food safety management system and apply HACCP (Hazard Analysis Critical Control Points) principles to provide safe products to customers 4. Comply with applicable regulations and legislations. 5. Mother Dairy pledge to provide quality and safe products under clean and hygienic environment.

The following steps are taken and ongoing efforts are continuously made as per "Management Systems Policy"-

 Minimize Waste generation  Conservation of resources  Use of renewable energy  Recycling & re-use

As far as the environment management is concerned it has the following arrangements-

Solar Panels In an effort to conserve fuel, Mother Dairy utilizes the solar energy to preheat the water going into the boilers. This also minimizes the pollution caused by burning of fuels like coal.oil etc.

Rainwater Harvesting For maintaining groundwater level it has installed the plant in the premises.

Effluent Treatment Plant The water used for cleaning the equipment and tankers is treated at the effluent plant in the dairy before being discharged into the sewage system.

Energy Management Policy Mother Dairy Food Processing Ltd. commit themselves for optimum utilization of energy in all manufacturing activities as well as in office by:

 Monitoring closely and controlling the consumption of various forms of energy through an effective Energy Management System.  All round participation of all employees and educating them about energy conservation.  Maximum utilization of renewable energy sources.  Upgradation of processes, technology and use of energy efficient equipments.

 Optimum utilization of plant capacity.  As a part of energy conservation and environment protection commitments, reduce the specific energy consumption.

As part of their energy conservation policy they saved Rs. 55 lakh of energy as per the current data with the help of 1oo% participation from the employees.

They also have a Total Productive Maintenance (TPM) for distribution which says “to eliminate accidents and breakdowns and increase the overall economic effect of all the resources by developing a system to enhance the knowledge and skill of employees, thereby increasing productivity and reducing costs.”The main policy which focuses the customer is the Service along with Quality policy which states that the customer should be served in the best possible manner and should also get the quality up to the mark.

Enhance Consumer Information

To raise the consumers awareness regarding Adulteration of milk, Mother Dairy has thrown open its testing facilities. In its laboratories consumers can see for themselves how impurities and adulterants are easily detected. Mother Dairy also has two "mobile labs" that can test milk in the residential colonies. All this is part of a commitment to provide the consumers with the purest milk nature has to offer.

PROCESS DESIGN AND PLANT LAYOUT Regional milk procurement centers

Milk procurement and testing lab

Refrigerated storage silos

Clarification unit

Standardisation unit

Homogenization unit

Pasteurization unit

Milk fortification unit

Packaging unit Refrigerated storage silos

Ice cream manufacturing unit

Dairy product manufacturing

Sent to various distribution network

The various departments in Mother Dairy Patparganj milk plant were: 1. Manufacturing Department 2. Production Department 3. MIS Department 4. Utility Department 5. Safety, Health & Environment Department 6. Thermal Department 7. Electrical Department 8. Automation Department 9. Procurement Department 10. Consumer Information Department

OBSERVATION DURING THE VISIT The most important observation during the visit was the hygiene factor present there. The premises and the plant area was clean, the employees have the orders not to touch milk with bare hands and they get their machines and silos cleaned every weekend to ensure that the milk produced is safe for the customers. Moreover, they have a specific TPM (Total Productive Maintenance) policy for everything like for distribution, energy conservation, environment etc. and KAIZEN policy for all the employees which they have to follow.

They have these policies as strict code of conduct as they are manufacturing milk which requires purity and hygiene and to give the best to the customers the company needs to do this. That is why their policies can be seen at most of the places in the premises.

My Learning From The Visit It was a very Fruitful trip not only from the industry point of view but also from the educational point of view. We met an employee of the company who was working for the past 31 years of his life and he seemed to be quiet happy by his commitment. Some of the questions that he answered were an eye opener to us, like: • How should milk be consumed? • When should milk be consumed? • Why milk is important to us? • Why is it important to clear customer doubts? Apart from these doubts that we all had in our mind he gave a Piece Of Mind regarding Management and shared some of his learning from past 31 yrs of his life which in itself was a great experience. He showed us a small presentation on How Mother Dairy has contributed towards Operation Flood. All in all it was a wonderful experience to visit and observe a corporate scenario for the very first time.