The document is a product project report prepared by Akbar Sanghar as part of his BBA program, focusing on establishing a small-scale milk processing unit named Kaveri. It outlines the project's purpose, operational details, and management strategies, including market analysis and personnel management practices. The report emphasizes the importance of small-scale industries in India's economic development and provides a comprehensive overview of various business aspects, from production to marketing.

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PRODUCT PROJECT REPORT
ON
(MILK)
PREPARED BY
(AKBAR SANGHAR)
ACADEMIC YEAR: 2015-2016
GUIDED BY
(PROF.KHUSBOO MALDE)
FOR THE PARTIAL FULFILLMENT OF B.B.A (SEM-V)
SUBMITTED TO
SAURASHTRA UNIVERSITY
RAJKOT
SHRI G.H.GOSRANI COMMERCE (ENG. MED) AND
SHRI D.D.NAGDA B.B.A COLLEGE
JAMNAGAR

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DECLARATION
I undersigned, AKBAR ABDULLAH SANGHAR, the students of SHRI D.D. NAGDA BBA COLLEGE
hereby declare that this Product Project Report is my own work through my best possible efforts and has been
created by me under supervision and guidance of Prof Khusboo Malde.
This report has not submitted to any university or institute for examination by any one.
DATE:-.........................
PLACE:-.......................
Sign of student,
…………………………..
(AKBAR SANGHAR)

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ACKNOWLEDGEMENT
It is really a matter of great pleasure for me to present this creative and practical work. At this stage,
project report is an important part of learning & every entrepreneur prepares it before starting of actual production.
I have taken this opportunity to express my sincere thanks to all those who helped me in the
preparation of this report. First of all I would like to thank my project guide Khushboo malde who have encouraged
me for preparing such a perfect product project report, then for his guidance.
I am very glad to submit the report to Saurashtra University. I have tried my level best to present the
available information in the best possible manner.
Date:-
Place:-
Signature

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PREFACE
As a management student of the final year of graduation, practical knowledge about the corporate world
is no more a desire or a voluntary action to be undertaken but a simple bare necessity. Books don’t suffice the
level of knowledge, a student is required to possess. A student should have a purview about the real happenings
of the corporate structure.
To suffice the above mentioned requirements BBA the course has expanded its purview and scope to the
world of practical training. Along with the big corporate entities, a student should have knowledge about all the
happenings and functioning of the small scale industries, in order to be competent managers or entrepreneurs.
As a student of BBA, one should have sufficient and basic knowledge regarding how to start a small
business, how to management it, how to make a financial estimates and manage funds and the most important of
all how to make a product project report on the basis of which they can apply for a loan from bank.

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INDEX
SR NO. PARTICULARS PG NO.
1. Introduction
2. Project at Glance
3. General Information
4. Marketing Department
5. Personnel Department
6. Finance Department
7. Present Position & Future Scope
8. Conclusion
9. Appendix
10. Bibliography

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INTRODUCTION
Small scale and medium scale industries from the bulk of Indian industry, the management of a
small scale industries is complex. It needs effective management and befitting governance. In reality, all these
industries from the backbone of Indian business. India must concentrate on medium and SSI for all round
development because SSI’s are the core sector of Indian culture which runs through Indian civilization.
Small scale industries play a vital role in industrialization of a developing country. They provide large scale
employment, higher labour capital ratio comparatively and the need for shorter gestations period and relatively
smaller markets to be economic. They need lower investment. They offer a method more equitable distribution,
national income and facilitate effective mobilization of resources of capital and skill which would otherwise
remain utilized. These industries stimulate growth of industrial entrepreneurship and promote a more diffused
pattern of ownership and location.

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Project at Glance
Name of the Unit : Kaveri
Type of Unit : Sole proprietorship
Size of Unit : Small Scale Unit
Nature of Unit : Manufacturing
Product Name : Milkee
S. S. I. Registration No. : An application is made with DIC for Registration
Subsidy Registration No. : An application is made with DIC for Registration
Detail of the location : Purchase of Land
Owner’s name and address : Akbar Sanghar
GIDC DARED ROAD, JAM NAGAR

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Owner’s Background
Particulars Partner A
Name Akbar Sanghar
Address GIDC DARED ROAD, JAM NAGAR
Age 25
Educational Qualification BBA
Role in Firm Owner
Experience Fresher
Contribution in Capital

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GENERAL INFORMATION
SR NO. INDEX PG NO.
1. INTRODUCTION TO SSI
2. JUSTIFICATION OF LOCATION
3. PRODUCT INFORMATION & MARKET ANALYSIS
4. PRODUCTIONCAPACITY
5. MANUFACTURING PROCESS
6. RAW MATERIALS

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INTRODUCTION TO SSI
The definition of S.S.I does not remain certain and constant because with the passing of time their
parameters keep changing.
In India, the literacy and education is now increasing at a faster rate than before and so now more
people have now started moving towards the industry from agriculture. These people can get self-development
and self-esteem with the help of S.S.I only.
In India, before 1991, great importance was given to the large-scale industries and there was hazardous
avoidance of small-scale sector, but after 1991, Government realized that only S.S.I can lead to the development
of the Indian Economy.

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JUSTIFICATION OF LOCATION
Location is the prime factor which has to be considering for starting a new business. The location
should be decided by considering all factors and making independent analysis of each variable separately
through cost benefit analysis and the location should either be near to the market (i.e. customers) or where the
raw material is easily available and in adequate quantity.
Raw Materials:-
The major components or major input which is and inevitable part of any production process is, Raw material.
Raw material at proper time, at a reasonable cost, and in right quantity, in right quality directly affects the price
of the final product.
In case of this industry the basic raw material is milk which are available from the surrounding areas of the
Rajkot.
Labour:-
Man power inputs i.e. labour holds important after the raw material. Cheaper and efficient labour availability
enriches the firm and thus, it is very crucial in nature.
In this case technically skilled and unskilled labour required which is easily from the nearby area.
Water:-
The proposed product is highly depending up on water supply and it is easily available from our own source
and water supply by Municipal Corporation.

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Market:-
The main aim of every product is to get potential market and proximity to market is also one of the most
considerable variables, due consideration to the variable will add to the prosperity of the firm and ultimately
will help in attaining customers satisfaction.
Transportation:-
Speedy transport facilities are needed for the regular and timely supply of raw material and finished goods. It
should be done keeping in mind the requirements and its nature.
As far as our product is concerned, we easily get road transport facilities, We can easily provide our product
nearest cities.

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Product Information & Market Analysis
The firm provides milk collection facilities in each Village. The milk is promptly transported twice a day
i.e. morning and evening to nearest Chilling Center. At present 81 Milk Routes are in operation. The milk is
chilled to 3 - 4 C and is then transported to Dairy Plant at Rajkot in insulated milk tanks. is an important Co-
operative democratic institution in Rajkot, latest technological machines & equipments. Milk again tested
before being packed. Pouch filling for the end users. Packed milk stored in well-maintained cold machine. Milk
Producers' Cooperative LTD collects the milk from all the villages. The collected milk is tested against the set
standards. That insures quality of milk being received from the root level. The received milk is sold locally as
well as transported to the dairy for the further processing. The milk is tested in dairy lab. No compromises with
the quality of milk being received. The qualified milk is received at Raw Milk Receiving Dock at Dairy.
Cleanliness is always the top priority at any stage of the milk cycle.
Marketing research is the systematic gathering recording and annualizing of data about problems
connected with market place i.e. problems relating to product, price , promotion and distribution marketing
research is concerned with all those factors, which have a direct impact upon the marketing of products and
service it is study of any part of total marketing process.
KAVERI LTD. analyzes the market record through market terms via customers, dealers.
Production Capacity
Table No. 1: Production Capacity
Installed (100%)
Name Of The Product Yearly Production
SWET 1,00,000

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Manufacturing Process
CHART NO.1
RAW MATERIALS
The basic raw material of this product is milk. The raw material is available from nearby area of Jamnagar.
In our contact there over 100 madali in nearest villages to get easily lot of milk as our raw material.
Unloadingof
cans
Physically
Inception of Milk
Transfer of milk
to dump tank
Filter
Weighing
Raw milk
collection tank
Pasteurization
standardization
Processed milk
Milk pouch
Packing

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MARKETING DEPARTMENT
SR NO. INDEX PG NO.
1. INRODUCTION
2. MARKETING MIX
3. MARKET SEGMENTATION
4. ADVERTISING & SALES PROMOTION
5. DISTRIBUTION CHANNEL

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INTRODUCTION
Every organization that produces one or more products requires marketing of the products sell them in
the market. It is only through marketing that people know about a company's products. Hence marketing is
considered as a key activity of organization. The organization requires sound marketing structure to carry on its
marketing activities.
However the concept of marketing is not confined only to selling of goods and services to customers.
Instead the company tries to create and maintain the customer base through marketing. The marketing thus
focus on the customer needs and wants in the market and emphasis on producing and selling only those goods,
which have higher demand in market. The company mainly markets its products through advertising. Marketing
uses various sales promotional tools to boost the sales of the company. The marketing department thus should
have sound distribution channel and promotional system to make the marketing activities sound.

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MARKETING MIX
The marketing mix , which is set of four elements or four “ P” of marketing are as follow
1. Product
2. Price
3. Place
4. Promotion
CHART
CHART NO 2
Marketing
mix
Product
Place
Price
Promotion

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PRODUCT
A product is anything that can be offered to a market for acquisition, use or consumption that might satisfy a
want or need.
PRICE
Pricing is a very critical decision in marketing management. The main objective of the firm that is to earn profit
very much depends upon the correct price decision. After meeting all the lost involve, the sales revenue
generated must yield a surplus before there can be profit.
Price is the only element in the marketing that creates sales revenue. Each and every firm have to decide right
price of their products and for deciding there are certain factors are affecting which are as follows:
 Government Policy
 Changing Demand
 Changing Markets
 Cost of Product
 Objectives of Business
In case of “KAVERY MILK COMPANY” there are determine price of their products from following:
 Basic Price (cost of raw material)
 Cost of Production
 Sales tax
 Operating cost (salary, wages etc)
 Profit
The company gives credit times of 20 days against delivery. And payment is made through
cheque or cash.

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PROMOTION
A specific combination of promotional methods used for one product. Elements of a promotion mix may
include print or broadcast advertising, direct marketing, and selling. All of the methods of communication that a
marketer may use to provide information to different parties about the product.
For the promotion “KAVERY MILK COMPANY” is using news paper, TV, and internet.
PLACE
Place in the marketing mix refers to the channel, or the route, through which goods move from the source to the
final user. Place could be the intermediaries, distributors, wholesalers and retailers. The right place means
greater chances of sales over a longer period of time. This translates into greater market share, more profits.
“KAVERY MILK COMPANY’ is selling its product in all over India

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MARKET SEGMENTATION
.
CHART NO 3
The process of defining and subdividing a large homogenous market into clearly identifiable segments having
similar needs, wants, or demand characteristics. Its objective is to design marketing mix that precisely matches
the expectations of customers in the targeted segment.
A marketing term referring to the aggregating of prospective buyers into groups that have common needs and
will respond similarly to a marketing action. Market segmentation enables companies to target different
categories of consumers who perceive the full value of certain products and services differently from one
another.
The company has geographical market segmentation
Market
Segmentation
Geographic Demographic Psycographic Behavioural

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ADVERTISING & SALES PROMOTION
According to the American Marketing association Advertising is defined as,
“A paid form of non personal presentation of ideas, goods or services by an identified sponsor.”
Advertisement has become an integral part. Not only for marketing but also of the entire economy and creating
of demand stimulation of economic growth, rising income, rising standard of living.
Advertising is a projection of image, a brand building exercise and medium to project differentiation.
Advertising is simply way of selling something anything in the most effective method, possible advertising is a
form of mass communication it is paid for by a sponsor who wants to communicate about his product or service
to customers.
Kaveri has adopted the following ways for
Advertising.
1. Newspaper
2. Magazines related Machines
3. Banners

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DISTRIBUTION CHANNEL
Marketing channel decisions affect all the other decisions of marketing thus; a company must choose the
channels with our eye tomorrow like selling environment. Depending upon the number, type and function of
intermediaries, the alternatives types of distribution channels are can be made. Distribution channels are useful
for transfer of goods. They may vary from zero to three levels, dual channel and up to six levels or more.
Various factors influencing choice of distribution channels are:
CHART NO 4
Kaveri. Has a competitor in India but still the company is making a good progress towards
achieving higher markets.
Main competitors. Are:
1. Amul
2. Mother Dairy
Manufacturers
Wholesaler
Retailers
End users

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PERSONNEL DEPARTMENT
SR NO. INDEX PG NO.
1. INTRODUCTION
2. HR PLANNING
3. RECRUITMENT & SELECTION
4. TRAINING & DEVELOPMENT
5. PROMOTION& TRANSFER
6. PERFORMANCE APPRAISAL
7. EMPLOYEE WELFARE & BENEFIT

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INTRODUCTION
Personnel management is the direction and co-ordination of human relation in the business organization. There
by obtaining maximum production with minimum use of physical and mental efforts of labour force. According
to American society of personnel administration,
“Personnel management is an art of acquiring, developing maintaining the component work force in such a
manner so as to accomplish the function and economically.” I It believes that a satisfied worker is an asset of
the company.

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HR PLANNING
The success of an organization depends largely on the quantity and quality of it’s human resources. No
organization can be successful in the long run without having the right number and the right kind of people
doing the right jobs at the right time. Procurement of the right kind and right number of personnel is the first
operative function of human resource management. Before selecting the right job, it becomes necessary to
determine the quality and quantity of people required in an organization. This is the function of human resource
planning or manpower planning. In short, Manpower Planning can be defined as “the strategy for the
acquisition, utilization, improvement and preservation of an organization’s human resources. It is aimed at
coordinating the requirements for and the availability of different types of employees.”In Kavery Industries, the
personnel department is very effective. It looks after the needs and desires of every employee. It believes that a
satisfied worker is an asset of the company. Total employees working in the company are divided into different
categories us under:
CHART NO 5
• 5Skilled worker
• 5Unskilled worker
• 2Accountant &
Manager
• 2Salesman
• 1Watchman

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RECRUITMENT AND SELECTION
Recruitment is the discovering of potential applicants for actual or anticipated organizational vacancies.
According to ‘Edwin B. Flippo’, “Recruitment is the process of searching for prospective employees and
stimulation and encouraging them to apply for jobs in an organization.
Recruitment has been regarded as the most important function of personnel department because unless the right
types of people are hire, the best plans, organizational charts, capital and control system would not be effective.
Generally recruitment is done on following steps: Job recruitment such as qualification, experience, age, job
responsibility, authority and salary.
“Selection is the process in which candidates for employment are divided into two classes. Those are to be
offered employment and those who are not. Selection is also said to be a process by which choice of a person or
new persons are to be made out of available all candidates. When there is any vacancy in KAVERY CO. they
are given advertisement in the newspaper time to time as and when required. All the workers are selected under
the manager of particular department. They get selected on the basis of experience and expertise.

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TRAINING AND DEVELOPMENT
According to Edwin Flippo, “Training is the act to increase the knowledge and skill of an employee for
doing a particular job.”
Training is the act of increasing the knowledge and skills of an employee for doing a particular job. “It is
application of knowledge. It gives people and awareness of the rules and procedure to guide their behavior.
Development is a related process. It covers not only those activities which improve job performance but also
those which bring about the growth of the help individual in the progress towards maturity actualization of their
potential capacities so that they become not only good employees but better men and women.
By training the employee will acquire the new skill, technical knowledge, problem solving ability etc.
In KAVERI CO. workers are given the training under the supervision of company’s trained and qualified
officer. The training officer is Mr. Akbar sanghar. If the candidate is fresh or not experienced then he has to be
put down under the supervision of other person who has experience of mechanism and matters of machines also
taught to the employee.

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PROMOTION TRANSFER AND DEMOTION
Promotion
A promotion is the advancement of an employee to a better job. Better in terms of greater responsibility more
prestige or status, greater skill and increased rate of pay or salary. Promotion is a very important aspect in every
organization because almost all the employees are promoted at one time or the other. Employee’s of early
promotion and they work effectively so that their dream comes true. Personnel management of any organization
should have a clear cut promotional policy to motivate their workers for higher performance and contribute to
the profits. In KAVERY CO. promotion is not require to the employee because there is low labour and worker
in the company as per the requirement.

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PERFORMANCE APPRAISAL
“Performance Appraisal is the systematic periodic and impartial ration of an employee excellence in matters
pertaining to his personal job and his potentialities for a better job.” Performance appraisal is the step where the
management finds out how effective it has been hiring and placing employee performance appraisal is the tool
to know the organizations efficiency.
In KAVERI CO. performance appraisal system is maintained by having periodical evaluation. If the employee
has performed extra ordinary then he is appraised through an evaluation system. Thus, this system helps the
management to make important decision like determination of qualification and training of workers etc. Hence
it brings our overall efficiency of the worker.

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EMPLOYEE WELFARE AND BENEFIT
Certain benefits are given to the employees in respect to their designation. An incentive or reward can be
anything that attracts a workers attention and stimulates him to work. The KAVERI CO. provides the following
facilities to its workers:
1. Transportation facility for staff as well as executives
2. Helmets for service staff
3. New year gift on Diwali
4. Medical facility
5. Festival Sweets

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PRESENT POSITION & FUTURE SCOPE
Every organization has its aims and desires. Every company plans for the future. It is the AIM of KAVER CO.
It is the plan of KAVERI CO. to increase its production capacity up to 1,00,000 per month. They also wish to
make their brand popular between the local and the national customers and also in the international market.
 Its aims to capture the wide market
 Also will produce new milk product in future
 It aims to have retail shops all over the country and also beyond boundaries
 It wants to compete with foreign companies

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CONCLUSION
The company is found to be one of the good industries producing MILK. Its products are well accepted in the
domestic market. This unit is well organized and well managed. Keeping in view the importance of personnel
“KAVERI CO.” too takes care of their personnel. It provides all facilities of the personnel accordingly. In
“KAVERI CO.” financial activities are going on and working smoothly. Thus, this company has made great
contribution to the state as well as the country by providing as much uses of product as possible with good
quality, a reasonable prize. Also the employees are satisfied with the company.

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APPENDIX
SR NO. PARTICULARS PG NO.
1. CHART 1
2. CHART 2
3. CHART 3
4. CHART 4
5. CHART 5

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BIBLIOGRAPHY
In preparation of this report, I have just following books which are useful in
collecting the data about project work.
1. Production Department:- Chary (T.M.H)
2. Human Resource Management:- C.B. Gupta , Ashwathappa
3. Marketing Management Philip Kotler
4. Finance Department:- Prasanna Chandra
S.M. Maheshwari
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