The document provides an overview of Surat District Co-operative Milk Producer's Union Ltd (SUMUL Dairy). It discusses SUMUL's history, founding in 1951. It outlines SUMUL's mission to be socially responsible and focus on consumer delight. The document also describes SUMUL's departments, products, packaging, labeling, pricing policy, and marketing environment.

2. A
Project rePort
on
summer trAining
At
“ surAt district co-oPerAtive
milk Producer’s union ltd. ”

3. In t r o d u c t io n
• Sumul or Surat Milk Union Limited, which is now renamed as The Surat
District Co-operative Milk Producers' Union Ltd, is one among the 12
district unions which acts as manufacturing units of dairy products for
(G.C.M.M.F.) Gujarat Co-operative Milk Marketing Federation Limited.
• SUMUL Dairy is a co-operative endeavor committed to help marginal
farmers and down trodden tribal to lead to a healthy life and better
standard of living through scientific animal husbandry practices. Today’s
Sumul enjoys the pride to serve milk and milk products to popular in Surat
city and surrounding towns of it.
• Hence, the Surat district co-operative milk producer’s union ltd,
SUMUL is trade name and literally meaning sound price, came in to
existence on August 22, 1951…

4. H is t o r y
• In the year 1939 Sardar Vallabhbhai Patel went and meets the farmers of
Anand and told them that for the trade of milk the dairy was necessary.
During that time there was only one dairy “POLSUN DAIRY” which
belongs to British’s and they use to give very less price for milk to the
Indian Milkmen. At that time a person named Tribhuvandas Patel came
forward to take the leadership. In order to support the Indian farmers
“AMUL DAIRY” was established in the year 1946.
• DR. Kurien was appointed at this dairy.
• Then after, For the proper development of the dairy industry N.D.D.B.
(The National Dairy Development Board) was established at Anand.
• Here the farmers were, made aware about their right & responsibilities
high productivity of milk at low cost & so the co-operative of development
programs started.
• In the year 1998-99 two million tone of milk was produced in Indian &
Indian becomes the world’s first milk producing country. Which is
more then 68 million of American.
So it was called “white revolution”

5. S u m u l’ s m is s io n &
v is io n s t a t e m e n t
“SUMUL IS SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT
TO CONSUMER DELIGHT AND RESPECT FOR ALL. SUMUL BELIEVE IN GROWTH AND
CONTINUOUS IMPROVEMENT THROUGH TEAMWORK, TRUST & EXCELLENCE,
WITHOUT COMPROMISING HIS HONESTY AND INTEGRITY"
Year 2009-10 2011-20
Turnover RS. 607 Crores RS. 4000 Crores
Milk Procurement 6,59,682 kg/day 14,10,000 kg/day
Milk Sale 595,595 Liters/Per day 13,00,000 Liters/Per day
Quality ISO 9001 & HACCP ISO 22000 & ISO 14001
Production cost Minimum Production Cost MPC through 100%
automation
Distribution System Consumers oriented, Consumers oriented, Cost
Quick and effective Effective Distribution, Cost
Effective Vertical &
Horizontal Distribution

6. N U M B E R O F D E P A R T M E N T S IN
S U M U L D A IR Y
There are 10 departments at Sumul, they are as follows.
• 1. HR department
• 2. Finance department
• 3. Sales & Marketing department
• 4. Veternity Department
• 5. Production & Engineering Department
• 6. Accounts Department & Audit Section
• 7. Assembling Department
• 8. Quality Department
• 9. Store & Purchase Department
• 10. Information Technology Department

8. in t r o d u c t io n
Sumul’s milk marketing in Surat city is monitored, eliminating costly sales-booths and
though regular and assured twice a day supply of milk to 1662 concessionaires (Agent)
and 198 institutional buyers, through 85 contractors’ route vehicles. There is
guaranteed cash inflow of the sales proceeds on day-to-day basis and safe return of
crates etc. to the Dairy. H i e r a c h y s t r u c t u r e o f
m a r k e t in g d e p a r t m e n t

9. m a r k e t in g e n v ir o n m e n t
Internal environment External environment
Micro Macro
 Internal environment:
They are generally audited by applying the ‘Five Ms’ which are….
Men, Money, Machinery, Materials and Markets.
 External environment:
Micro-environment:
This environment influences the organization
Macro-environment:
directly. The wider environment is also ever changing.
It includes :
1. suppliers who deal directly or indirectly It includes competition, Government Policy, Politics,
2. consumers and customers Economical Policy and Cultural activity.
3. other local stakeholders

10. L is t o f C o m p e t it o r s
• Following some of the dairy all from the district i.e. from North Gujarat & Maharashtra:
1. Unity dairy, Uttarsanda 11. Sardar Dairy, Mehsana
2. Jeevan Shakti, Dhuliya 12. Vimal Dairy, Mehsana
3. Vishalsagar, Dhuliya 13. Royal Dairy, Gandhinagar
4. Gopi Milk Products, Puna 14. Suffal (Paneer)
5. Gautam Milk Products,Kopargoan 15. Satyam Dairy, Gandhinagar
6. Gayatri Milk Dairy 16. Sumathur dairy
7. New Suraj Dairy, vijapur 17. Mahakall Dairy, Sid
8. Sarita Milk Products, Kadi
9. Britannia (Ghee)
10. Neslte (Milk powder, Ghee)

11. P r o d u c t - m ix O F s u m u l d a ir y
Products Mix: “The set of all products and items that a particular seller offers for sales to buyer.”
Liquid Milk Self Developed
Milk Products Products
Whole Milk Butter Milk Paneer
Pasteurized Ghee Flavors
Standard Milk
Milk
White Butter Sweets
Homogenized
Toned Milk
Skimmed Milk Shrikhand
Powder
Skimmed
Milk
Sumul Sugar
Cow Milk
Sumul Tea

12. P A C K A G IN G &
L A B E L IN G
P a c k a g in g L a b e lin g :
• Packaging is one of the most • To achieve marketing objective of
important factors that the to satisfy the desire of the
management must have to consumer sumul has chosen the
consider in mind. labeling components very
• Here, different machines are correctly.
available for different types of • They also use different -different
packing. The firm is now going for slogan on the product.
a new type of packing called • SUMUL use this type of symbol …
“Gable top packing”.
• The main advantage of such type
of packing is in this packing milk
remains fresh for about 10 days.

13. P r ic in g p o lic y
Pricing Policy:
General information regarding to setting of price is it has fixed structure followed by GCMMF at
Sumul farmers are paid on the basis of kilo fat in their milk. They are paid Rs.318 per KG of fat.
Taking this as base the price of the product is being set. Price list are as follows:
Commodity Quality Price(Rs.)
Ghee 15 kg 2300
5 liter 720 Cost Structure of Product:
2 liter 275
1 liter 150
1 liter pouch 145 Production cost
500 ml pouch 74 + Transport expenditure
200 ml pouch 31 + Profit Margin
White Butter 15 kg 1695 + Commission
500 gm 60
Jome 200 ml bottle 8
------------------------------
200 ml pouch 5 Cost
Paneer 1 kg 105
200 gr 22
EIaichy Peda 500 gr 59
250 gr 30
Kesar Peda 500 gr 79
250 gr 40
Malai Puri Peda 250 gr 36
Premium Tea 500 gr 62
250 gr 33
100 gr 14
Silbver Tea 500 gr 71
250 gr 39
100 gr 16
EIaichy Shrikhand 500 gr 40
Kesar Shrikhand 500 gr 45
100 gr 10

14. O r g a n is a t io n ’ s b u y in g
proc e s s
Buying Process:
• Sumul collects the milk from the
villages.
• The collected milk is tested against the
set standard. That insures quality of
milk being received from the root level.
• The milk is tested in lab. No
compromises with the quality of milk
being received and pay the price of
milk on the basis of fat.
• The qualified milk is received at raw
milk receiving Dock at dairy.
• The received milk is transported to the
dairy for the further processing

15. P r o d u c t lif e c y c le
The Product Life Cycle concept helps marketers interpret product and market dynamics.
Introduction
Growth
Maturity
Decline
Sumul is at the growth stage of the product life cycle and our company
also create the new idea and launching new product time to time and
increasing sales every time.

16. C h a n n e l o f d is t r ib u t io n
DISTRIBUTION CHANNEL OF LIQUID MILK
So, its called one level (1 level) Distribution Channel
DISTRIBUTION CHANNEL OF DAIRY PRODUCTS
So, its called two level (2 level) Distribution Channel

17. M A R K E T IN G / S A L E S D e p a r t m e n t A T A
GLANC E
 Population of Surat City: 45, 00,000
 Market Size: 8, 25,000 Liters/ day. (Population*250ml per capital)
 Annually Milk sale (2010-11) is 24,93,28,941 Liters .
 Average sale (2010-11) is 6, 83,093 Liters milk per day.
 Growth: 14.82%
 Market share: 77%
 Competitors in packed milk:18-20 having sale 25000-30000 liters in total per day.

18. P r o m o t io n a l A C T IV IT IE S
 Advertisement:
Here advertising is done through hoardings, banners, wall painting, newspapers, and
stickers etc. Sumul dairy spend nearly 20 to 25 lakh on the advertisement.
The contract of advertisement is with the Venus ads.
 Healthy Baby Contest since 1992…
 Paneer Show:
 Education Programs:
 House Visits:

20. in t r o d u c t io n
• Sumul believes that the most significant resource is its Human Resource and Sumul’s Success
in the long run depends very much on the quality of its human resources.
 HR Objectives:
• To develop and sustain core values.
• To develop business leaders for tomorrow.
• To provide job contentment through empowerment, accountability and responsibility.
• To build and upgrade competencies through virtual learning, opportunities for growth and
providing challenge in the job.
• To faster a climate of creativity, innovation and enthusiasm.
• To enhance the quality of life of employees and their family.

21. O r g a n iz a t io n s t r u c t u r e

22. A c t iv it ie s o f p e r s o n a l d e p a r t m e n t
The main activities of this department are…
Recruitment, selection, Training, Self Development & Employee Personality
Development and welfare activities. R & D
Huma n re s ourc e p la n n in g
 When there is any vacancy or some requirement comes up
in the organization. Human resource planning is being done.

23. S e le c t io n proc e s s
• Procedure for selection is differing from organization to organization and
from job to job. • For Executives: • For Non-Executives:
• Written Test • Written Test
– Aptitude test • Final interview
– Subject test • Final selection
• Group Discussion
• Interview
• Final selection

24. P E R F O R M A N C E A P P R A IS A L S YS T E M
• “Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in matters of pertaining to his present job and his potential
for a better job”
• In sumul, gives specific project to the employee to train him. After completion of
this project, it is checked by the authorized person of the department.
if the employee do not perform well then they are terminated from the
organization.
T r a in in g & D E V E L O P M E N T
• Sumul Dairy, training is given with the objective of increase in productivity of employees,
increase quality of work, enhance and update knowledge and skills of employees.
• Sumul provides training as on the job training and give training to new employee.
Training is given to the workers which are basically at period of one month.
 Training is given in 3 Categories as:
» Management Training.
» Office Training
» Senior Executive Training
• So, the sumul also organized various development programs for
Officers and Executives.

25. W a g e & s a la r y s t r u c t u r e
“Wages represent hourly rates of pay & Salary means monthly rates of pay”
•Sumul also provides this type of allowances :
•Dearness Allowance (DA)
•Additional Dearness Allowance (ADA)
•House rent Allowance (HRA)
•Leave Travel Allowance (LTA)
•Washing Allowances (WA)
•City & Travel Allowance (CTA)
•Visiting Allowance (VA)
•Bicycle Allowance (BA)
•Scooter Allowance (SA)
•Driving Allowance (DA)
•Other Components:
 Bonus
(8.33% of BASIC +DA+ADA)
Funeral Fund
Rs.3000 to the ward and family of the dad.
Every month Rs1/- of all higher executives salary is maintained for this fund.

26. E m p lo y e e w e lf a r e
“Labour welfare means anything done for the comfort and improvement. Intellectual
or social of the employees over and above the wage paid which is not a necessity of
the industry”
 Intra mural welfare activity of
Sumul:  Extra mural welfare activity of Sumul:
 Convenience and comfort during
 Transportation
the work
 Washing facilities  Roads, lighting, garden
 Store & Drying facility  Communication facility
 Canteen facility  Security
 Rest room  Training and development programs
 First aid facility
 Vehicle parking space
 Accommodation
 Vehicle loan
 Uniforms, Shoes and Raincoats
 House rent recovery

27. P e r s o n n e l in f o r m a t io n s y s t e m
The HR department keeps the information of each and every employee from top to
bottom level workers. This information is updated from time to time.

29. O r g a n iz a t io n s t r u c t u r e o f p r o d u c t io n
d e p a rtme nt

30. A c t iv it ie s o f p r o d u c t io n d e p a r t m e n t s
• Production planning
• Material requirement planning
• Store finished goods and raw material
• Quality control
• Packaging
• Painting of pack product
• Transport to Marketplace
• Washing and cleaning of equipments, regular maintenance of machine and
other equipments.
M A P O F A C T IV IT Y A R E A :-
Cilling Centre
Main Dairy Plant
km distance from surat
Taluka/ Tahsil Name Cattle Feed Factory

31. P r o d u c t io n proc e s s
Production process at SUMUL dairy is derived into two main stages.
They are as follows-
1. Process flow from Village to Chilling Centre Level
2. Dairy plant to Market Level
PROCESS FLOW FROM VILLAGE
TO CHILLING CENTRE
Milking by Producer Producer approaching DCS Grading & Testing at DCS
Transportation to Chilling Centre Collection at DCS
Receiv ing at Chilling Centre Testing at Chilling Centre Transportation to Dairy Plant

32. 2. DAIRY PLANT TO MARKET LEVEL
Milk Receiving Testing of Milk Processing
Packing Processing Processing
Storage Delivery Market

33. U n it o f s u m u l & t h e ir c a p a c it y
Unit Place Capacity Employees Distance
From Surat
SUMUL DAIRY Surat 5 Lakh LTPD 591 0 km
Bajipura Bajipura 3 Lakh LTPD 113 50 km
Chilling (B.C.C.)
Centre
Navi Pardi Navi Pardi 2 Lakh LTPD 66 25 km
Chilling Centre (N.P.C.C.)
Uchchhal Uchchhal 1 Lakh LTPD 49 105 km
Chilling Centre (U.C.C).
Nizer Chilling Nizer 63,000 LTPD 16 175 km
Centre
Chasvad Chasvad 30,000 LTPD 100 km
Chilling Centre
(C.C.C.)
Dediapada Dediapada 30,000 LTPD 135 km
Chilling Centre (D.C.C.)
Sumuldan Chalthan 200 MT PD 96 18 km
Factory (S.D.F.)

34. M ic r o m o t io n s t u d y
• During the visit to the production plant we have done micro motion study of a
worker whose work was to take the milk pouched from the machine and the keep
them on carate, which uses to come serially on the belt conveyors. The position of
the person was such that it to very less time.
• The pouches of 500 ml were filled in Polly bags, sealed and ready pouches were
thrown though the pouch-filling machine.
• The entire process was completed in 18 sec.
Q u a lit y p o lic y
“ SUMUL DAIRY ARE DEVOTED, DEDICATED AND MOTIVATED WORKFORCE
TRAINEDTO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY AND SAFE
MILK AND MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF CUSTOMER
SATISFACTION.
SUMUL WILL ACHIEVE THIS BY MONITORING AND UPGRADATION OF
PROCEDURES AND PROCESS APPLYING SCIENTIFIC INNOVATIONS AND
STATE OF THE ART TECHNOLOGY AND REMAIN ECOFRIENDLY QUALITY AND
FOOD SAFETY MANAGEMENT SYSTEM.”

35.  TOTAL QUALITY MANAGEMENT (TQM)
• TQM (Total Quality Management) was implemented at SUMUL on 6th May, 1996 with
the help of EICHER CONSULTANCY, Mumbai.
 TOTAL PRODUCT MANAGEMENT (TPM)
• TPM (Total Product Management) was implemented at SUMUL on 19th, October, 1999
with the help of TQM center at Surat under consultancy of Dr. B. C. Naidu.
• Sumul has adopted International Standards for Quality Management. QAS Australia has
certified our quality management systems by issuing ISO 9002, ISO-14001 and
H.A.C.C.P. Certificates.
 ENVIRONMENT POLICY:
• Comply with all applicable environmental legislation, regulations and other
requirements .
• Control Plant operations to conserve natural resources such as water, electricity and
fuel and prevent pollution
• Continues improvement of environmental performance Creating
awareness towards environmental issues among suppliers and stake holders

36. S u p p o r t s e r v ic e s
» Maintenance
» Packing
 Maintenance:
At SUMUL, there is a strong maintenance procedure on raw materials & final
products, because such milk products should be maintain in such way they
maintains their quality for the long period of time.
 Packing:
• Packaging is one of the most important factors that management must have to
consider in mind.
• Here, different machines are available for different types of packing. The firm is
now going for a new type of packing called “Gable top packing”.
• The main advantage of such type of packing is in this packing milk remains
fresh for about 10 days.

37. M a t e r ia l h a n d lin g e q u ip m e n t s
 Material Handling Equipments Used  No. of Material Handling Equipments Used:
Equipment Quality
• Pipeline: Milk Tankers :
Sumul 13
• Trolleys:
On contract 11
• Crates Trolleys
Tempos (on contract) 70
• Cans Trolleys
Belt Conover 8
• Plastic Tube
Crates 40,000
Cans :
• Belt Conveyors:
40 Liter. 250
• 20 Liter. 25
Trucks (Tempos):
Crates Trolleys 50
Cans Trolleys 10
Plastic Tube 5
Glass Betties (200 ml) 35,000

38. P la n t lo c a t io n
• SUMUL dairy is located near railway station road in Surat. It covers
15,000 – acre land. Sumul provides milk collection facilities at the producer’s door
in each village co-operative, where milk is speedily, efficiently and economically
transported twice daily to its dairy plant and chilling centers for processing and
marketing.

40. H ie r a r c h y o f f in a n c e
d e p a rtme nt
“Finance management is that managerial activity which is concerned with the planning
and controlling of the firm financial resources.”
• Sumul is the co-operative so it has not
special financial department.
• Sumul require a lot of funds for
meaning its working capital needs and
other obligations.
• It manages its working capital needs
through internal funding only. There is
regular, assured and smooth in flow of
cash from milk sales from the agents to
dairy’s Cash Collection Centers on
day-to-day basis.

41. T u r n -o v e r in f o r m a t io n
• From the study of the above diagram, we can see that Sumul has made a
continuous progress in their profit making figures.
• The present turn over of the firm is 790 crores
which is 90 crores more than the profit of the previous year.

42. B u d g e t in g & p la n n in g
• Capital budgeting decision pertaining to fixed and long term assets which by
definition refer to assets which are in operation and yield a return over a period of
time , usually exceeding one year .
• Capital budgeting is the most important and complicated problem of managerial
decision. Because it is concerned with designing and carrying out through a
systematic investment programmes.
• It involves the planning of such expenditures, which provides yields over a number
of years. The firm’s investment decision would generally include expansion,
acquisition, modernization and replacement of the long-term assets.
• In short, the capital budgeting decisions means…
a decision as to whether or not money
should be invested in long term projects.

43. T a k in g lo a n s ( S O U R C E S O F
FUNDS )
• Every firm needs money or funds for the activities of it’s organization and they all
takes it from either share capital or loans like debentures, bonds etc…
 Reserve fund & other funds: 16,85,26,228
 Debenture Redeemable: 4,54,500
909 debentures Rs.500/- each
 Loans: 42,32,87,520
N.D.D.B. (operation flood) 27,08,078
Cattle loan etc. 2,05,79,442
Short term Loan 40,00,00,000
 Interpretation:-
At the and of the year Sumul has….
• Reserve fund & other source of funds Rs. 16,85,26,228
• Redeemable Debenture Rs. 4,54,500
• Total Loans Rs. 42,32,87,520

44. Is s u in g s h a r e s
 Authorized Share Capital: 10,00,00,000
(10, 00,000 ordinary shares of Rs.100/ each.)
 Share Capital (Issued fully paid up.) 4,23,67,200
(4, 23,672 ordinary shares of Rs.100/- each.)
•Interpretation:-
• Sumul has 10, 00,000 ordinary shares of Rs.100/ each.
So, Authorized Share Capital Rs. 10,00,00,000
•Sumul Issued Share Capital is 4,23,672 ordinary shares of Rs.100/- each.
Which are fully paid up.
So, Share Capital Rs. 4,23,67,200

45. C os t s ys te m
• Cost is one of the main factors affecting finance department.
• There are lots of control techniques through which companies can control
their cost.
Cost Structure of Product:
Production cost
+ Transport expenditure
+ Profit Margin
+ Commission
------------------------------
Cost
P a ym e n t proc e s s
•Collection of sales bills & sales data
•Data verification with sales information
•Feed concern data in computer
•Feed duration data in computer
•To pass duration entry to the computer.

46. B a la n c e s h e e t d a t a
• Comparative analysis means after some period company analyzing its financial
report current year figure with the past years figure .
• With the help of comparative analyzing company aware about it financial position.
• Some balance sheet data are as follows:
Liabilities Assets
• Authorized Share Capital 10,00,00,000 • Assets 42,72,01,141
• Investments 4,97,46,578
• Share Capital (Issued fully paid up.) 4,23,67,200 • Stock 48,05,07,794
• Debenture Redeemable 4,54,500
• Reserve fund & other funds 16,85,26,228 • Advances & other assets 32,96,97,582
• Loans 42,32,87,520 • Cash & bank 95,92,51,961
• Current liabilities 1,59,04,09,166
• Profit & Loss A/C. 2,13,60,442
 Net Profit 2,13,60,442
 Total Income / Expenditure 8,40,61,16,108

47. W o r k in g c a p it a l
• Generally, the term Working capital refers to that part of capital which is not tied
up in fixed assets but is used to meet the day-to-day requirements of business.
Working Capital = Net Current Assets – Net Current Liabilities
Current Assets:
In 2011 Stock is 54,47,01,276, Investment is 4,97,44,132 ,
Cash & Bank A/C is 75,49,00,390 ,
The total Assets is 1,34,93,45,798.
Current Liabilities:
In 2011 Reserve fund & other funds is 15,03,81,724,
Current liabilities & loans is 1,34,53,70,370.
The total Liabilities is 1,49,57,52,094.
So The Net Working Capital is 14,64,06,296