This report is about mother diary plant visit and the process of mother diary, how they are working to achieve their goal !

1. Megha Ahuja
MOTHER DIARY
REPORT
Submitted By:
PGDM –Insurance Business
Management
17IN631

2. Submitted by: MEGHA AHUJA
MOTHER DIARY
ABOUT VISIT
BIMTECH had organized an Industrial visit to Mother Dairy Fruit and Vegetables Private ltd
plant located at Patparganj, Delhi on 24 July 2017.
PGDM-IBM students along with two faculty members visited there. As soon as we reached to
the plant, we were guided by Mr. Pillai and Miss Neha. They gave us the brief introduction of
the Mother Dairy, its history and how the company works. The main objective behind the visit
was to make student aware about the various insurance risk associated to the company and how
to deal with these risks by applying proper strategies and safety measures.
MOTHER DIARY – JOURNEY SO FAR
Mother Diary is one of the largest liquid milk company in Asia. It started its operations in 1974
under the operation Flood Programee of the National Diary Development Board. Mother
markets and sells dairy products in Indian company that manufactures milk products and other
edible products. Its milk products include cultured products, ice cream, paneer and ghee under
the Mother Dairy brand. The company also sells edible oils, fresh fruits and vegetables, frozen
vegetables, and processed food like fruit juices, jams, pickles. Mother diary Sources its
requirement of liquid milk from dairy co-operatives and producer institutions.
Presently, In Delhi, Mother Dairy sells more than 30 lakh liters of milk per day, out of which
about 10 lakh liters of milk is sold as bulk vended milk and another 20lakh liters of milk is sold in
poly Pack in five variants. Apart from Delhi, Mother Diary Markets its Poly Pack Milk in Gujarat,
Andhra Pradesh, and Tamil Nadu, Maharashtra, Western UP, Haryana , Punjab, Himachal
Pradesh & Uttrakhand.

3. Submitted by: MEGHA AHUJA
OBJECTIVE
Mother Dairy had, as its main objective, “carrying out activities for the economic development
of agriculturists by efficiently organizing marketing of milk and dairy produce, agricultural
produce in raw or processed form and other allied produce”. This was to be done through
 Common Branding
 Centralized quality control
 Centralized purchases and
 Pooling of milk efficiently.
PROCESSING OF MILK
At Mother Diary, Processing of milk is done through state-of-the-art microprocessor technology
which integrates and completely automates all functions of milk processing and ensure high
product quality, reliability and safety. The various stages of milk processing are given below:
RAW MILK
RECEPTION
CLARIFICATION
STANDARDIZATION
DISPATCH
DEEP
CHILLING
PASTEURIZATION
HOMOGENIZATION

4. Submitted by: MEGHA AHUJA
STEPS INVOLVED:
 Milk Collection from Farmers
Farmers comes to milk pooling point, where raw mixed milk is collected, tested, chilled and stored
at below 4 degree Celsius in butter milk chiller.
 MILK TRANSPORTATION
 Raw mixed milk collected from villages is transported through insulated road and rail
tankers.
 Raw mixed milk post chilling stored in silos.
 TESTING
Raw mixed Milk undergoes 23 stringent quality tests before it is accepted for processing. Broadly
raw mixed milk is tested for:
 right composition
 low bacterial load
 Free from contaminants.
 RECEVING DOCK
Raw mixed milk is unloaded and stored in stainless steel insulated silos below 4 degree Celsius
before processing.
 CLARIFICATION
The chilled milk from the silos goes to the clarifier after pre-heating. The clarifier silos the milk at
very high speed, removing all dust particles that are invisible to the naked eye Clarification
involves application of “centrifugal force” which means rotation of milk at high speed (at 6100
rpm) to remove foreign matter like fine dust particles.
 HOMOGENIZATION AND FORTIFICATION
 Vitamin A is added in milk.
 Then milk is subjected to very high pressure to break the fat Globules, thereby fat is mixed
evenly in every drop of milk and does not float on top
 Homogenized milk is easily digestible, good for tea, coffee and curd making
 PASTURIZATION

5. Submitted by: MEGHA AHUJA
Kills pathogenic bacteria by heating the milk to 78 degree Celsius for 16 seconds and then
immediately cooled to 4 degree Celsius with atmost no change in the nutritive value of the milk.
 STANDARDIZATION
In adherence to food safety standards regulation, milk is processed to ensure a standard
composition of fat and solids not fat contents.
 FILLING DOCK
After milk is processed, milk is either filled in tankers or packed in polypacks and then distributed
in the market.
 CONTROL ROOM
After milk is dispatched from the Dairy, the delivery is continuously monitored by the control
room. Tankers are equipped with GPS so that they can be easily tracked for smooth delivery.
 MULTIPLE MODE OF VENDIG MILK IN THE MARKET
After the delivery, milk can be obtained from various outlets shops of Mother Dairy which have
multiple mode of vending milk.
PRODUCTS
PRODUCT SATISFACTION (POLY PACK MILK)

6. Submitted by: MEGHA AHUJA
CHALLENGE AND RISK FACED BY MOTHER DIARY
 Raw materials lying with the subcontractors
 Finished goods inventory at subcontractor end
 Expected delivery of finished goods
 Non-standard production processes, and
 Subcontractor database and billing.
 Raw material, packing material loss
 Customer and supplier outstanding
 Multiple changes in rolling plan and weekly order
 Quality of materials
 Risk of fraudulent transactions
 Production delays due to material shortages, and
 Manpower and resource planning for multiple lines.
Mother Dairy subcontracts the production of ice-creams. At one point, this made their job
tougher than they imagined, as the subcontractors were using disparate systems, leaving Mother
Dairy with minimal control over their processes. The company found it increasingly tough to
track and manage…Since subcontractors were using independent systems for various processes
like procurement, finance, etc., and as their systems did not sync with Mother Dairy’s, they too
faced their share of challenges, especially in tracking and managing…

7. Submitted by: MEGHA AHUJA
In order to overcome the challenges faced by the company and the subcontractors, Mother Dairy
wanted to implement an ERP solution to standardize and track the masters and production
activities at different subcontractors. They also wanted to monitor the purchases by
subcontractors in order to maintain the quality.
ACTORS INFLUENCING FACILITY LOCATION OF MOTHER
DAIRY IN DELHI/NCR REGION
Availability of raw materials
Mother Dairy, Patparganj, Delhi, is presently manufacturing & selling around 8.5 lakh litres of
toned milk through bulk vending shops. As manufacturing company requires the raw materials to
be converted into finished goods it must be located near the sources of their raw materials. Hence
the Patparganj location serves as the main source of supply of various mother dairy products.
Availability of power
Industries using electricity have to be located at a place where electric power is available
regularly and at cheap rates. Power is very essential factor to move the wheels of the industry.
Delhi being the capital do not have any shortage of electricity. The electric power is cheaply
available in plenty.
Availability of labour
Labour is an important factor in the production of goods. The development of the plantation
industry in India has been mainly due to, among other things, the availability of adequate labour
at cheap rates. There is an abundance of skilled labor in location like Delhi.
UNDERWRITING CONSIDERATIONS
The underwriting considerations in the mother dairy are as follows:
1) Perishable goods.
2) Working of machinery
3) Effective registration
4) Transportation
5) Effective cleaning of containers.
MEGHA AHUJA
17IN631