Vita Milk Plant

Preface To know how much my theoretical knowledge will be helpful in actual/real business environment; I did 1 month summer training in PRAKESH TEXTILES. In the present time of tough competition and rapid development both in terms of technology production process, every business enterprise irrespective of its size & function has to follow organized & systematic approach even for mere existence. In the present time scenario small and big each and every deal need agreement form/documentary from without documents there are much uncertainty in business dealing. Exports play a very important role in international business as they facilitate the smooth flow of goods and payment from the importing countries. To many authorities we have to submit many document related to even a single deal. Every document should contain all the required information.

CONTENT 1

objective of the study

2

Introduction of the company

3

Company profile

4

Document of Export Procedure

5

Export Procedure

6

Conclusion

7

Suggestion

COMPANY PROFILE Haryana is one of the most progressive states of republic of India. In the domain of dairy development it is well known for its productive milch cattle particularly the Murrah Buffaloes and Haryana cows. The economy of the state is predominantly based on agriculture. People rear and breed cattle as a subsidiary occupation. Milk production in the State was estimated around 128.18 lacs litres per day during 1999-2000. The essence of various programmes launched in the state has been to adopt the Anand pattern of Milk co-operatives. Under the system all the function of dairying that is milk procurement, processing and marketing are controlled by the milk producers themselves and their elected representatives. It has three tiers system comprising, milk producers at the village level, milk producer co-operatives union at the milk shed level and the state milk federation as an apex body at the state level. The Haryana Dairy Development Co-operative Federation Ltd. registered under Haryana Co-operative Societies Act came into existence on April 1, 1977. Its authorized share capital is Rs.2000 lacs. It was established with the primary aim to promote economic interests of the milk producers of Haryana particularly those belonging to weaker sections of the village community by procuring and processing milk into milk products and marketing thereof by itself or through its unions. In furtherance of the above objects, the Federation undertakes a number of activities such as establishment of milk plants, marketing of VITA BRAND milk products of the Milk Unions. Its turnover during 2004-05 was to the tune of Rs.355.00 crores. It also extends technical guidance to the Unions in all spheres of personnel, technical, marketing and financial management as well as makes them quality conscious, through use of modern methods of laboratory testing of various products.

Milk societies Collect milk from produces twice a day, morning & evening.

Milk unions Procure milk from societies, process the same in the Milk plant run by them & market in the local areas.

Federation Policy planning, providing of technical know-how to Milk unions and marketing of milk and milk products outside local areas.

Quality - VITA the Hallmark of Quality As part of stringent quality measures, milk required for processing VITA products is procured from Dairy Cooperative Societies only. It is ensured that the milk is transported to chilling centers and plants in clean and sterilized milk cans as quickly as possible. Al quality measures as per Standard of Bureau of Indian Standards/Agmark are being applied before the products are marketed. Well-equipped laboratories are functioning in the chilling centers and milk plants to maintain ideal quality standards. VITA is the endorsement of quality, a commendation we are Proud of. Milk Plant Rohtak, Ballabgarh, Ambala and Jind have obtained ISO9002 and IS-15000 certificates. Remaining Plants would also obtain ISO-9002 shortly. Each Plant has taken steps for implementing Hazard Analysis and Critical Control Points (HACCP)

vision We are professional institutions dedicated to improvement of economic status of milk producers and empowerment of the dairy co-operative structure in the state. It is our endeavour to provide the best and the most efficient services in the areas of milk procurement, processing and marketing. Employee’s participation, continuous improvement, use of enviourmental friendly techniques and human resources development will be our valued instruments for achievement of our objectives.

ON THE PATH OF PROGRESS

HDDCF- On the path of progress-: Under the dynamic leadership of Sh.Bhupinder Singh Hooda, Honable Chief Minister, Harayana Dairy Development Cooperative Federation after conducting a thorough SWOT analysis had formulated an action plan for the year 2005-2006 to achieve record results for the dairy cooperatives in Harayana. We are happy to report that all targets outlined in the plan have been achieved.

Achievements of targets are as under: 1. The average milk procurement during the last five years was 3.61 lacs

lts. /day and it was 3.65 lacs lts. /day during 2004-2005. We are able to achieve the target of 4 lacs lts. /day which is a historical land mark for HDDCF. 2. Due to special efforts undertaken by HDDCF for marketing of vita

milk and milk products, the total fluid milk sale for the year 20052006 was 2.71 lacs lts. /day on an average registering an increase of 32.2% over the last year. We were able to increase the fluid milk sale to 2.71 laces lts. /day over the expand base of 2.05laces lts/day in the previous year. Therefore, we were able to achieve targets set out in the action plan both with respect to milk procurement and milk marketing. 3. We were able to achieve a record turn over of Rs. 390crores and

increase in net profit from Rs. 84.15laces last year to Rs. 160laces this year, an increase of 90% in spite of meeting our obligation of repayment to NDDB to the extent of Rs. 5.5crore in the year 20052006. 4. The average price paid to the producers was Rs. 12.67 per kg. Of milk as compared to last year Rs. 11.76 per kg. 5. Historic agreement were reached with mother dairy after making

continuous and joint efforts with others cooperative milk federation of northern region to obtain annual national milk grid price of Rs. 15.25 per liter for the year 2006-2007 as against average price of Rs. 14.70

per liter in the last year. This is the highest in the history of HDDCF. This alone would result in financial benefit of approx. Rs 3crore to HDDCF during the year 2006-07. 6. Due to our persistent and strenuous efforts, we were able to get

sanctioned IDDP schemes from GOI under which we will be provided Rs. 14.5crore. Which is the highest amount given to any MILK FEDERATION in the entire country and Rs. 10crores under the scheme “assistance to cooperative” to wipe out cumulative cash losses of milk union and Kurukshetra. As a result, cumulative cash losses of milk unions and Federation taken together would be reduced to zero. We also got sanctioned Rs. 6.5crores from NCDC for Jind milk union. Harayana government sanctioned Rs 1.50crores for women dairy cooperative societies. 7. We were able to achieve the afore-mentioned targets by including a spirit of ownership in the farmers producers by no. of schemes for their benefit i.e. subsidized accident insurance scheme, white card scheme (providing loan to the farmer producer to the extent of Rs. 1laces for purchase of animals without any collateral security) and by providing veterinary services through 16 veterinaries engaged on contract basis for round the clock service to the animals of our producers. 8. Restructuring of milk unions and federation which were pending for

more than 10 years was got approved and implemented. Already 115 promotions have been effected at junior/senior level positions in the milk unions & federation.

SCHEMES:

• Assistance to Women cooperatives:

Under this scheme, state govt. has sanctioned a sum of Rs. 150 laces for the purchase of 408 numbers of milko testers and 42 numbers of AMCS as grant to Women cooperative societies. At present, there are 650 number of women cooperative societies. 200 societies had got assistance to purchase milko testers under STEP project of govt. of India. With the assistance of state govt. /govt. of India now all 650 societies have obtained milko testers/AMCs.

• Assistance to cooperatives 50:50:

This is a scheme on 50:50 basis between govt. of India and state govt. to provide assistance to loss making milk unions i.e. MU, KurushetraKarnal and Hisar-Jind are entitled to get assistance under this scheme. An assistance of Rs. 10crores were sanctioned for this purpose. Out of this Rs. 2crores; one crore from state govt. and one crore from govt. of India were sanctioned during the year 2005-06. The balance will be released on next two years. Investment of Rs. 318laces will require strengthening the infrastructural facilities at the chilling center in MU, Kurukshetra-Kernal. Remaining assistance will be utilized to clear other liabilities.

• IDDP project:

During 2005-06 govt. of India has sanctioned the projects for 5 districts; Bhiwani, Jhajjar, Mohindergarh, Rewari and Sonepat worth Rs. 1453laces. These funds will be utilized for providing 54 bulk coolers, 4 milk parlors, 5 tankers, meeting working capital requirement, strengthening of societies, and manpower development. Duration of the project is 5 years.

• Clean milk production:

Under this scheme GOI has sanctioned Rs. 180crores for purchase of 25 bulk milk coolers etc.

• NCDC scheme:

During 2005-06 NCDC/State govt. has approved a scheme of Rs. 619laces for milk union jind which envisages expenditure for expansion of milk plant Jind- Rs. 270laces, Rs. 49laces for equipment to societies and Rs. 300laces as margin money.

Projections for 2006-07:

• Milk procurement Against the target of 4laces liters laid down for the year 2005-06 an average of 4.02 lac liters/day has been achieved. It is envisaged to further increase the average milk procurement to 5laces liters/day during 2006-07 an increase of 25%.

• Liquid milk sale Against the target of 2.64laces liters/day laid down for the year 2005-06 an average of 2.71 lac liters/day has been achieved. Liquid milk under brand name VITA will be further increased from 2.71lac liters/day to 3.24lac liters/day during 2006-07; an increase of 20%.

Schemes for 2006-2007: • SETTING UP BULK COOLERS TO ACHIEVE CLEAN MILK PRODUCTION AND PROVIDING OF AMCs AND MILKO TESTERS TO SOCIETIES Our objective is to set up maximum numbers of bulk milk cooling units to attain highest standard in quality of milk. Besides milko testers/AMCs are provided to all the societies in a phased manner.

1. Bulk milk coolers At present 59 bulks milk coolers are functional. By end of 2006-07, 175 bulk milk coolers will be functional at various stations covering 40% of milk procurement.

2. Providing AMCs and milko testers

At present 1650 societies have been provided with milko testers and 155 societies with AMCs. By the end of 2006-07, 2000 societies will have milko testers and 450 societies will have AMCs. With this addition 54% coverage will be achieved.

• IDDP PROJECT: From our side projects of 11 districts worth Rs.33crores were submitted. Govt. of India has sanctioned projects for 5 districts; Bhiwani, Jhajjar, Mohindergarh, Rewari and Sonepat worth Rs.1453laces during 2005-06. Govt. of India has also assured that after the project has successfully launched in the 5 districts they will further consider our pending projects for other 6 districts they are Panchkula, Fatehabad, Mewat, Kurukshetra, Kaithal, Karnal worth Rs.18crores during the year 2006-07.

• STEP PROJECT: GOI has sanctioned women dairy project programme in 6 districts Ambala, Kurukshetra, Jind, Rohtak, Fatehabad, Sirsa to benefit 10000 women members through 200 dairy cooperative. The project cost is Rs.449lacs out of GOI share is Rs.392lacs. The amount released so far is Rs.282lacs which has been fully utilized. Further project for Rs.7crores has been submitted for Bhiwani, Jhajjar, Mohindergarh, Rewari and Sonepat to women development cooperation Haryana for onward submission to govt. of India. The project is likely to be sanctioned during 2006-07.

FUTURE PLANS: EXPANSION OF SALES: Following measures would be taken to strengthen milk marketing-: 1. Thrust areas will be to increase numbers of milk booths. 100 milk

booths will be added during current year as against 73 milk booths added last year to give push to marketing efforts. More stress will be given to open milk booths in sectors developed by HUDA and colonizers. 2. To make all available all vita products at all retail points numbering

more than 2000. 3. Elaborate media plan will be formed. 4. Customer’s complaint will be addressed promptly.

As a result of the above measures: •

Liquid milk sale will increase at the rate of 15% per annum till 2009-10.

• Ghee/Butter/Dahi/SFM/Pinni sale will increase at the rate of 10-15% per annum till 2009-10.

CAPACITY EXPANSION AND STRENTHENING MILK PLANTS: During the year 2006-07 the focus area will be as under: 1. Addition of essential new machinery at various new plants. 2. Addition/modification/replacement of machinery to reduce fuel and

power expenditure at milk plants/chilling centers. 3. Strengthening of various existing chilling centers.

4. Automation of various milk plants and chilling centers.

There is tremendous increase in the liquid milk sale and it touched all time high during 2005-06. The facilities for packing, processing and storage of liquid milk will be increased at Milk Plant Ambala, Jind, Rohtak and Ballabgarh to meet the target fixed for 2006-07. Refrigeration capacity will be further enhanced at Milk plant Jind, Rohtak and Ballabgarh during 200607.

STRUCTURE OF ORGANISATION: Physical parameters of Harayana Dairy and its Affiliated Milk Unions:

S.NO.

PARTICULARS

1.

No. of Milk unions No. of Milk Plants No. of Chilling Plants No. of Functional Coop. Societies (a) Milk Procured (lacs Ltrs) (b) Peak Milk Procurement (lac/tr) (c) Average Milk Procured/day (lac LPD) No. of Pourers Average Price Paid/ltrs Rs. Average Transportation Cost per kg milk Fat Losses percentage SNF Losses percentage Cattle Feed sale (MT) Capacity Utilization % Custom Packing Fluid Milk (lacs/ltr) Fluid Milk Sale (lacs/ltr) Ghee Sale (MT) • Distributor’s sale. • Societies sale

2. 3. 4. 5.

6. 7. 8. 9. 10. 11. 12. 13. 14. 15.

1.4.99 TO 31.3.2 K 5

1.4.2K TO 31.3.01

1.4.01 TO 31.3.02

1.4.02 TO 31.3.03

1.4.03 TO 31.3.04

1.4.04 TO 31.3.05

1.4.05 TO 31.3.06

5

5

5

6

6

6

5 13

5 17

5 23

5 25

5 25

5 27

5 27

2607

2710

2885

3166

3350

3794

4127

918.28

1009.35

1237.09

1355.62

1209.15

1331.80

1468.30

4.42

5.26

6.23

6.35

5.81

5.67

6.75

2.52

2.77

3.39

3.71

3.30

3.65

4.02

66747 10.7

71885 10.96

94632 10.55

94672 11.99

87688 13.05

104189 11.76

112772 12.67

0.56

0.61

0.534

0.50

0.597

0.608

0.61

1.56

1.45

1.32

1.28

1.41

1.40

1.33

1.04

0.98

0.96

0.92

0.97

0.80

0.80

7831.4

5659.30

7808.8

8085

11293.4

14151.8

17540.7

101.76

117

128.33

130

146.36

137.42

162.27

870.04

922.01

1155.6

1282

1344.32

1253.53

1249.31

340.40

391.56

349.3

385

563.6

747

991.50

1888.7 1515.5

2411.7 1771.30

3654.2 2035.20

4023 2525.20

2691.20 1655.68

3263.50 1935.20

3343.41 2094.10

373.17

640.40

1619

1497.80

1035.52

1328.33

1249.31

16.

Butter sale (MT)

273

281.40

282.1

324

376

526.43

648.30

17.

Sales Turnover (Rs. In crores)

215.92

238.44

277.40

320.23

351.45

355

390

INFRASTRUCTURE: There are five Milk plants at following stations: