Jay Somanath 2

The ratio indicates what portion of sale revenue is left to the proprietors after all operating expenses are met. The Net Profit Ratio is increased continuously from 74.48% to 58.28%. It is increased by more than 110%. It indicates that administrative expenses are highly decreased as compare to Net Profit.

18,612,47431,934,828

58.28 %

GENERALINFORMATION

1

============================================================PROJECT PROFILE:-============================================================

Name of the organization :-

“Vimal Dairy limited ’’

Business Philosophy :-There are different business philosophies to different

companies. In like this Vimal also different philosophy from others. There are main two business philosophies in the business.

To serve to interest to milk products. To provide quality product to the customer.

Name of the students:-

PATEL NIRALI L. (S.Y. B.B.A.)

Objective of the project work:-To determine three main subjects-

o Marketing Managemento Finance Managemento Personnel Management

Institution in charge:-

SMT. S.B. PATEL INSTITUTE OF MANAGEMENT.

Duration:-

21/10/09 to 6/11/09

Report submitted to:-

NORTH GUJRAT UNIVERSITY, PATAN

Academic year:-

2

2008 – 2009

HISTORY & DEVELOPMENT

Vimal Dairy Ltd. Establish on 30th June 1995. Under the name of Vimal Dairy there

are many other companies besides Vimal Dairy Ltd. And jointly they are well known as vimal

group. Vimal group of company consist of several other company they are:

1. VIMAL CABLES LTD. 2. VIMAL PUMPS PVT LTD. 3. VIMAL PAINTS 4. VIMAL DAIRY LTD. 5. VIMAL OIL & FOODS LTD. 6. VIMAL MICRONS

It has long history in the establishment. Vimal is a group of companies first of all

Mr. Chandubhai I. Patel has started Vimal electric company as a partnership firm in 1978. This

was first to manufactured capacitor, booster, and transformers.

The ancillary item of submersible pumps i.e. PVC winding wives and there core

flat cable, were introduces in the market by forming a private limited company, under the

name of Vimal cables limited.

3

There was a short of water for irrigation. They introduced submersible pumps

in the market under the brand name of “ vimal group ’’by forming a private limited company,

under the name of “Vimal pumps pvt. Ltd”.

In 1989, they started vimal paint to manufacture different part of industry and

decorative paints, by forming a partnership concern under the name of the vimal paints. Resin

being the raw material for paints. They started manufacturing resin under vimal card. Alkyls

resin is exported to various countries.

In north Gujarat rapeseeds are available in bulk and consumption of addible

oil is more in Gujarat looking to the heavy demand of refined oils, they introduce cotton seeds

and reposed oil under the name of “vimal oil & food ltd” for the same. The company has come

out with public issue in March’ 1994. One of the objects of the issues was to part finance the

project for extraction and so TPD edible refined oil plant.

As we know that north Gujarat, especially mehsana is well known as major

milk producer district in north Gujarat. There were great opportunities for forming a dairy in

north Gujarat.

They manufacture process milk powder. The present capacity of the plant is to

process two laces liters of milk per day. The company was also a plant for making powder

from milk the capacity of the same being 10 MT per day. But the developing process does not

and here. They had also entered in to micro mineral business. The company viz“Vimal

microns limited” started manufacturing of micro minerals in 1996.it is very clear that this

group is still in progress.

4

HISTORY OF THE PRODUCT

Introduction:-

India is the largest producer of milk producing more than 100 million tons of milk per

annum. Yet, her per capita milk consumption is around 250 g per day.

India has a population of more than 1 billion with diverse food habits, cultures,

traditions and religions. Regional variations within the country can be mind boggling.

On one hand, the country has plains with long tradition of milk production and

consumption. On the other hand, there are forest and hilly regions with no tradition of

dairying. Most of coastal belts also do not have much of dairy tradition.

Cow is holy for Hindus who make up more than 80 per cent of the population of India.

Buffalo enjoys no such holy status. Cow slaughter is banned in many states of India.

There are no restrictions on buffalo culling.

All this makes India a very complex dairy country.

5

Table 1.1 – Projected growth rate of milk production and dairy products consumption

Product Projected Growth Rate

Product

Projected Growth RatePer cent per annum

Milk production 3

Ghee consumption 8

Table Butter consumption 10

Paneer (cottage cheese) 10

Processed cheese 12

Dairy whiteners and condensed milk

8

Highlights Milk production is growing at 3% per annum

Per capita milk availability growing at only 1.5% per annum

Ghee (clarified butter) consumption growing at 8% per annum

Table Butter & cheese consumption growing at 10% per annum

Demand for dairy products will soon exceed supply

India will find it difficult to sustain dairy exports

6

India will turn net importer of dairy products

HISTORY OF THE PRODUCT

Human population: 953 million (70 million dairy farmers)

Milk production : 74.3 million tones (203.5 million lpd)

Average annual growth rate (1995-2000): 5.6%

Per capita milk availability: 214 g/day or 78 kg/year

Milch animals: 57 million cows; 39 million buffaloes

Milk yield per breed able bovine in-milk: 1,250 kg

Cattle feed production (organized sector): 1.5 million tones

Turnover of veterinary pharmaceuticals: Rs. 550 cores

Dairy plants throughput: 20 mlpd

Throughput as percentage of total milk output: 10

Value of output of milk group (1994-95)*: Rs. 50,051 crores

Value of output of dairy industry**: Rs. 105,000 crores

7

CONTRIBUTION OF THE UNIT TO THE INDUSTRY

India is the number one country in milk production with an annual

milk production of 74 Million Metric Tons. An average man who could get only 110 gm milk

per day in the early 70’s is now getting 210 gm milk per day. This is really a commendable

achievement given the huge size of our country and population. These are the fruit of the

integrated approach adopted for development of the dairy industry better known as the white

revolution.

The contribution of Vimal Dairy Ltd. to the industry especially edible

milk industry is just excellent. It is one of the very few edible milk companies. It is also

provide good milk and milk products to the customers at cheap price and required quality.

Vimal Dairy Ltd. has a big market share in the industry.

Amul dairy, Sagar dairy, Sardar dairy are the major competitor of the

vimal dairy ltd. In mehsana sagar dairy, Sardar dairy, enjoy a very huge market share then

vimal dairy. Sardar dairy and Sagar dairy is also situated in Mehsana. In compare with Vimal

dairy, the Sagar dairy and Sardar dairy have the more the product in market. Sagar dairy enjoy

huge market share then Sardar dairy and Vimal dairy. The existence of the competition in the

market it will enable the customer to get dairy the product at the minimum price with good

quality.

8

1.INDUSTRIAL

PROFIL

9

INTRODUCTION

The dairy industry is recognized as one of the largest and most important

of food industries. The dairy industry exists for one purpose to provide at a reasonable cost ,

milk, and, milk products that satisfied the consumer needs and fulfills his nutritional

requirements. The industry means different things to different things to the different

participants, the producer, the dairy handler and the consumer.

The word “dairying” was derived from the Middle English word “deiris”

meaning is day or maid servants worked.darying now commotes a wide range of activities

starting is the production of milk in the farm to the point it reaches the consumer in the form of

liquid milk or as its products. The industries is linked together by a diverse field of disciplines

such as dairy science, animal husbandry, crop husbandry and dairy engineering management

science is applicable in each of these disciplines and integrates them to achieve the objective

of providing milk to the consumer by making an optimum use of the earth’s renewable

resources for production of milk.

10

HISTORY OF PRODUCT

Today, India is 'The Oyster' of the global dairy industry. It offers

opportunities galore to entrepreneurs worldwide, who wish to capitalize on one of the world's

largest and fastest growing markets for milk and milk products. A bagful of 'pearls' awaits the

international dairy processor in India. The Indian dairy industry is rapidly growing, trying to

keep pace with the galloping progress around the world. As he expands his overseas operations

to India many profitable options await him. He may transfer technology, sign joint ventures or

use India as a sourcing center for regional exports. The liberalization of the Indian economy

beckons to MNC's

and foreign investors alike.

Central Dairy of Aarey Milk Colony - Goregaon commenced in 1950 beginning Dairy

Industry in India.

AMUL Dairy ushered 'White Revolution' in 1956 from Anand. Dr. Kurien of AMUL is

Living Legend of Dairy leading India to self sufficient in Milk & Milk products.

Long distance refrigerated rail-transport of milk from Anand to Bombay since 1945

Pasteurization and bottling of milk on a large scale for organized distribution was

started at Aarey (1950), Calcutta (Haringhata, 1959), Delhi (1959), Worli (1961),

Madras (1963) etc.

Establishment of Milk Plants under the Five-Year Plans for Dairy Development all

over India. These were taken up with the dual object of increasing the national level of

11

milk consumption and ensuing better returns to the primary milk producer. Their main

aim was to produce more, better and cheaper milk.

The Government of India, realizing the importance of animal genetic resources, has

established the National Bureau of Animal Genetic Resources (NBAGR) at Karnal,

Haryana, in 1984.

Embryo Transfer (ET) technology allows the multiplication of elite livestock breeds at

a much faster rate than any other option available

In the past 30 years, the annual production of compounded feed has gone up to 3

million tones from 40,000 tones

New types of feeds have been developed, to improve the nutritive value of the

traditional cattle diet.

Indigenous remedies, based on herbal and ayurvedic formulations, are also being used

extensively for disease control and as feed supplements/additives and as yield boosters.

From an insignificant 200,000 liters per day (lpd) milk processing in 1951, the

organized sector is presently handling some 20 million lpd in over 400 dairy plants.

12

PRESENT TENDS IN INDIA

Till about year 2000, India was not on the radar screen of most international dairy

companies, since India was neither a major importer nor an exporter of dairy products.

Through the 70’s, 80’s and 90’s India used to take some milk powder and butter oil as aid.

Exports from India were insignificantly small. From 2000 onwards, Indian dairy products,

particularly milk powder, casein, whey products and ghee started making their presence felt in

global markets.

The decade of 2000-10 will be recorded in dairy history as the decade of exports.

But the next decade will be different. Signs of change are already visible. India is finding it

difficult to sustain  exports. The day is not far when India will become a net importer of dairy

products,particularly of dairy fats.

India’s milk production will grow at about 3 per cent per annum in spite of

difficulties due to stagnant livestock herd size and shortage of fodder. Due to increasing

population, per capita availability of milk will increase by only about 1.5 per cent per annum.

For an economy growing at about 8 per cent per annum, this increase in availability will be

grossly inadequate

13

2.COMPANYPROFILE

14

===============================================================INTRODUCTION:-===============================================================

Name of the company:-

“Vimal Dairy limited ’’

Located at:-

o Near Palavasna,o Rail way crossingo Highway,o Mehsana-384 002

Address of Registered office :-

o “Vimal house”o 31, GIDC estateo High way, o Mehsana-384 002

Address of Corporate office :-

o 1, National chamber 1st flooro Opp. Mangal murti complex,o Ashram road,o Ahmedabad-300 009

Classification of industry:-

“Medium scale industry”

15

FORM OF ORGANIZATION & SIZE OF UNIT

The unit can be divided in to large scale, medium scale, small scale

according to the capital employed and employees working in the company. VIMAL DAIRY

LTD. uses power in production process and working in the company are approximately 40 to

50 and staff about 90. So from this point of view it can be said as medium scale unit.

There are many forms of business like sole trader’s firm, partner firm,

co-operative firm; joint stock company, private company, limited company etc. The form of

organization may be use of them. VIMAL DAIRY LTD. has been established as

“Limited company”. That is the liability of shareholders is limited to the capital contribution

by them. If the company is need of money that it can not ask for money from the shareholders

which is greater than the face value of share.

16

ORGANIZATION STRUCTURE

17

Managing Director

DirectorMkg & Prod

DirectorAdministration

ProductionDepartment

MarketingDepartment Finance

DepartmentPersonnel

DepartmentCompanySecretary

Marketing – In - Charge

Sales Supervisor

Salesman

QualityManager

ProductionManager

Chief AccountantAssistantSecretary

AssistantAccountant

EXISTING MANAGING BODY

DESIGNATION NAME

Chairman :-Shri Chandubhai I. Patel

Whole time Director :-Shri Jayeshbhai C. Patel

Technical Director :-Shri C.V. Patel

Marketing Manager :-Shri Dasharathbhai Patel

General Manager :-Shri K.K. Soni

Manager (Procurement) :-Shri Vasudevbhai Patel

Production Manager :-Shri Dineshbhai Pandya

Manager (R & D, D.C.) :-Shri D.B. Patel

Company Secretary :-Shri Jigneshbhai Maniyar

Chief Accountant :-Shri Mahendrabhai Patel

Bankers 1. Dena bank 2. Mehsana district. Co-operative bank

3. Mehsana urban Co-operative bank

18

LaboratoryIn charge

Maintenance in charge/Purchase in charge

3.PRODUCTION DEPARTMENT

19

INTRODUCTION

Production is sometimes defines as creation of utility or creation of want

satisfying goods and services; man can not create matter nor can be restore matter. He can give

them utility in precise.

Production system means a combination of production design process

assign and material flows. It also required out forecast production plans and performance

reporting. Before starting production planning and forecasting is essential, so that is an

affection of the available resources.

In Vimal Dairy has a separate department for production. Only using

automatic machine for production. Milk (raw material) is obtained from villages mainly from

North Gujarat in villages there is milk collection center called mandali that collects the milk

from villages there is a total 350 mandali in Gujarat.

ORGANIZATION STRUCTURE

20

OF

PRODUCTION DEPARTMENT

PRODUCT LIST AND PRICE LIST

21

SENIOR MANAGER

PRODUCTIONMANAGER

OFFICER

SUPERIOR

OFEACH PRODUCT

A product mix is a set of al products and items that a particular seller offers for sale to buyers. The products mix of Vimal dairy ltd. contains main six products. They are as under:

1. Milk2. Ghee3. Butter4. Butter milk5. Milk powder6. Cheese

Vimal dairy ltd. sells their products with different brand name, Quantity, Price, and Packing. These products are as under with their brand name, quantity, and price.

1. Milk:

Brand name Quantity Mrp.New vimal super pasteurized full cream milk 500 ml 12.50Vimal gold pasteurized full cream milk 500 ml 12.00Vimal pasteurized full cream milk 500 ml 12.00Vimal shakti pasteurized standardized milk 500 ml 11.50Vimal pasteurized standardized milk 500 ml 11.50Must gold pasteurized standardized milk 500 ml 11.00Must shakti pasteurized skimmed milk 500 ml 11.00Vimal tazza pasteurized tined milk 500 ml 11.00Vimal sathi pasteurized double toned milk 500 ml 11.50Must sathi pasteurized skimmed milk 500 ml 10.50Akik tazza pasteurized skimmed milk 500 ml 10.50Akik gold pasteurized skimmed milk 500 ml 10.00Akik shakti pasteurized full cream milk 500 ml 10.50Miral pasteurized standardized milk 500 ml 11.50Fresh “n” fit pasteurized standardized milk 500 ml 11.00Vimal milk 200 ml 05.50Vimal sathi pasteurized double toned milk 200 ml 06.50Must shakti pasteurized skimmed milk 200 ml 06.00Akik tazza pasteurized milk 200 ml 5.00

22

Brand name Quantity Mrp.Vimal pure ghee 15 kg. 3300Must pure ghee 15 kg. 3000Vimal pure ghee 200 gm. 44.00

2. Ghee:

Brand name Quantity Mrp.Vimal pasteurized white butter 20 kg. 2000Must pasteurized butter 1 kg. 105

3. Butter:

Brand name Quantity Mrp.Vimal pasteurized butter milk 500 ml. 5.00Akik butter milk 500 ml. 4.00Dadhu dharas pasteurized butter milk 500 ml. 4.30

4. Butter milk

Brand name Quantity Mrp.Vimalya instant milk mix 10 kg. 360Vimalya instant milk mix 500 gm. 38

5. Milk powder:

Brand name Quantity Mrp.Vimal processed cheese 1 kg. 275

6. Cheese:

MANUFACTURING PROCESSOF

23

EACH PRODUC

1. Production process milk powder:-

Collect the milk in milk tank

↓

Pasteurize the milk in milk tank

↓

Give heat to the milk and sort

Fat into the milk

↓

milk take into the powder plant

↓

Give 5 times heat to the milk

↓

With the help of e-operating milk

Convert into condens

↓

After that milk convert in powder form

↓

Spray the powder with hit in powder tank

↓

Packing in 25 kg’s bag

↓

Store & dispatch

24

2. Production process of ghee

Collect the white butter

↓

Melting the white butter in Chan machine

↓

Charning the milk and make butter milk and lumps

↓

Sort out the butter milk and lumps into the cream

↓

Give heat to the lumps in ghee kettle

↓

Give 112 c’ heat to the lumps

↓

Ghee is ready in cooking kettle

↓

Give coldness to the ghee & Filter the ghee

↓

Clarification & testing

↓

Packing & dispatch

25

3. Production process of white butter

Collect the cream

↓

Churning the cream in Chan machine

↓Remove the way into the cream

↓

Working on cream

↓

Tasting

↓

Packing

↓

Dispatch

same process is hear for making table butter but in table butter

add two more ingredients salt and anoto vegetable colour because this table

butter is use for directly for eating purpose that’s why its call table butter.

We can not use white butter for eating purpose it is use for

making ghee .

26

4. Production process of chess

Collect the pasteurized 3% fat milk

↓

Give 35 c’ heat to the milk

↓

Add culture in milk

↓

After that add enjaim raned

(With the help of enjaim raned chess made in 1 hour)

↓

Sort out the butter milk and lumps

↓

Remove the butter milk

↓

Collect the lumps

↓

Than press it

↓

Store the chess in cold storage for 3 months

↓

Cut the chess in different size

↓

Packing

↓

dispatch

27

PASTEURIZATION PROCESS OF MILK

Pasteurization is a well know process named after a legendary French scientist

Louis Pasteur who had developed a process to preserve perishable foods like milk in the 18th

century.

The modern process of pasteurized refers to heating

milk and milk products to at least 72 Celsius for 15 seconds in

order to destroy harmful organisms present in ‘raw’ (non-

pasteurized) milk. Thus, pasteurization makes milk and milk

products safe for consumption and improves its keeping

quality.

You must have observed a layer of cream from an the

surface of milk when it is stored undisturbed for 2-3 hours.

This is because the fat present in the milk is lighter than the

other constituents of milk. Moreover, fat in milk is present in the form of small fat globules.

When they come together, they form a layer of fat, thus making them float..

Many times this is not desirable; because once the fat has formed a layer it is very difficult to

mix it again with the rest of the milk. To solve this, a process has been developed which is

know as Homogenization.

Homogenization is a process of making different sized fat globules form in to a

uniform homogeneous small size.

Homogenized milk has increased whiteness so less milk is required to make tea

and coffee. Homogenization gives a thicker consistency of milk. However, it is easy to digest.

28

PASTEURIZED MILK

All types of milk process is same but in different milk different

combination of Fat & SNF (solid not fat) which is denoted below. It will be set

in laboratory. The SNF is set by the lactometer reading. The table of fat & SNF

is below.

Particular FAT SNF

Whole milk 6.0 9.0

Standardized milk 4.5 8.5

Toned milk 3.0 9.0

Double toned milk 1.5 9.0

Skimmed milk 0.07 32

29

DESCRIBE THE PRODUCT

Who made it:- Manufactured by:

Vimal Dairy Ltd.

Nr. Palavasana

Rly. Crossing

Highway, Mehsana

MMPO Reg. No. 5/1997

When it was made:-

Date of Mfg.

What it contains:-

Vimal butter ingredients

Milk fat salt, Annatto

Color, milk fat : minimum 80-1

Vimal cheese ingredients

Cheese, sodium citric

Common salt and citric acid

Vimal milk powder ingredients

Milk and sugar

Milk fat 20 kg, milk protein 20 gm,

Carbohydrates 50 gm, minerals 5 gm.

Vimal milk ingredients

Milk fat

Minimum SNF

30

Direction for use of vimal milk powder:-

For a glass (200 ml) of milk mix, add 3

heaped table spoon of lukewarm water and stir.

Important:- Pour contain of this pack in to a dry tin or

container and replace the lid tightly. Store in a cool

dry place.

Testing: Vimal Dairy has a separate laboratory to test

the nutrition value and level in the milk by 4-lab

attendant.

They also get ISO – 9002 certificate that shows

their accuracy in quality.

Laboratory and testing expenses:-

Testing chemical are Alcohol & Acid.

31/03/2008 31/03/2007

1,66,019 Rs. 2,04,661 Rs.

31

COLLECTION OF MILK

Vimal dairy ltd. Collects the milk from villages mainly from North Gujarat in

villages there is milk collection center called mandali that collects the milk from villages there

is a total 350 mandali in Gujarat. From that collection centers the milk is taken to the cold

storage center or chilling center, the chilling center keeps the milk under 4 c. temperature in

cold storage. There is three cold storage in three cities Patan, Tharad, and Deesa. These cold

storage centers collect the milk from mandali which comes under the coverage of 25 km. from

the cold storage center, Ultimately, Vimal dairy ltd. Collects milk from cold storage center

through insolated tankers. Other villages near to the Mehsana, from that the company directly

collects milk in the company.

These chilling centers collect the milk per day as under:

Chilling center Milk collection per dayTarad

40,000 liters

Paten 45,000 liters

Deesa 30,000 liters

Total 1,15,000 liters

32

4.MARKETING

DEPARTMENT

INTRODUCTION

33

Marketing is very important for any organization. If company has not

marketing department so it is not sales it’s product. This type of organization structure is very

important because when company has marketing department so it can easy to sale it’s product.

According to Philip Kotler, “Marketing Management is the analysis,

planning, implementation and control of programs designing to create build and maintain

beneficial exchange with target buyers for the purpose of achieving organizational objectives.”

According to American Marketing association that, “Marketing

Management is the process of planning and executing the conception pricing, promotion and

distribution of ideas goods and services to create exchanges that satisfy individual and

organizational objective.”

“Marketing management is an art and a science of choosing target market

and getting, keeping and growing customer through creating, delivering and communication

superior customer value.”

It is accepted that ability to produce does not always guaranteed success

ability to sell at a profit is a real test. In today competitive market, winning companies are

those which delight the customers. It is always true that good companies satisfy needs of

existing market, but great companies will create market. Vimal Dairy is exception in this

function also. In Vimal dairy marketing is good and like company structure.

34

ORGANIZATION STRUCTUREOF

MARKETING DEPARTMENT

In Vimal Dairy Ltd. marketing department consists of sales activities,

Vimal Dairy deals with marketing activities of edible milks are directly supplied to brokers as

per order received from them.

35

Board of Directors

Managing Directors

Marketing Manager

Brokers

PRODUCT PLANNING

Basic aim of producing a goods or services is to satisfy the needs and wants

of the consumers and buyers in an effective manner. The company may achieve its

organization goal by providing maximum satisfaction to the customers. This process can be

achieved only through the process of product planning. The product is the most tangible and

important key to success of marketing.

In Vimal Dairy Ltd. considers some points to how to make product planning

very effectively.

First of all they analyze the market demand for which kind of products

consumer’s want. Market Department’s studies consumers test and preferences. Company's

main market is in Gujarat. So company considers the Guajarati people's wants so the company

introduces their new products in Gujarat festivals.

The last decision about product planning is taken by the top level management.

36

PRICING POLICY

Price is the main factor of the product. Price is the marketing mix element that

produces revenue. It is one of the most flexible elements also. No one choose price by any

way. Companies handle pricing in a variety of the way. In small company’s prices are obtain

set by the company’s boss. But in the large companies, pricing is handling by the division and

product line manager.

A Vimal Dairy has adopted competition cost based method of pricing. They

select price of their product as nearest of its competitor’s product price.

Pricing fixation procedure is as under:-

Selecting the pricing objectives

Determining demand

Estimating cost

Analyzing competitions cost price and offers

Selecting pricing method

Selecting the final price

37

PRICING STRATEGY

PREMIUM STRATEGY:

Vimal dairy offers to their customer milk powder & ghee in high quality at a

high price.

HIGH VALUE STRATEGY:

Vimal dairy offers their butter & milk products are some high quality product as

products of their competitor company but they charge less. This help to attract quality.

SUPPER VALUE STRATEGY:

PRODUCT PRICE HIGH

PRICE MEDIUM

PRICE LOW

Quality high 1.PRIMIUM STRATEGY(milk powder & ghee)

2.HIGH VALUE STRATEGY(butter & milk powder)

3.SUPER VALUE STRATEGY (butter milk)

Quality medium

4.OVER CHARGING STRATEGY(no product)

5.MEDIUM VALUE STRATEGY(no product)

6.GOOD VALUE STRATEGY(no product)

Quality low 7.RIP-OFF STRATEGY(no product)

8.FALSE ECONOMY STRATEGY(no product)

9.ECONOMY STRATEGY(no product)

38

Vimal dairy offers their butter milk is same high quality but charge extremely less

price.

QUALITY POLICY

Vimal dairy ltd. is striving for customer satisfaction, by

processing of milk & manufacturing milk products and supplying with quality service at

reasonable price by adopting appropriate technology and complying the requirements &

continually improving the Q.M.S

This will be achieved by:

1. Processing of milk & manufacturing of milk products as per national quality levels.

2. Complying statutory requirement with all applicable standards and specifications.

3. Implementing ISO 9001 quality management system and update it as per future

requirements.

4. Promoting hygienic environment.

5. Developing long lasting relationship with supplier for mutual benefits.

6. Confiscations.

39

MARKETING CHANNNEL

After producing finished products the company is required to sell it to the

consumers. Most producer do not sells their products directly to the final users. Between them

stands a set of intermediaries performing a variety of functions. These intermediaries

constitute a marketing channel.

Marketing channel or distribution channel is a set of inter dependent

organization in the process of making a products or services available for use or consumption.

Vimal dairy ltd. producer of milk, ghee, cheese, and milk powder sells

through distribution channel of the company is spread on all over the Gujarat. The distribution

channel comprises four intermediaries’ distributors; dealer, sub-dealer, and retailers, the

physical flow of distribution starts from the company itself. They sent the products to

authorized distributors. From that it goes to dealer comes under them. From dealers to

retailers. And at last it goes to end users or consumers.

The same marketing channel can be represented diagrammatically as under:

Vimal Dairy

Authorized Distribution

Sub – Dealer

40

Retailer

Consumer

The distribution channel is mostly used for milk and butter milk because of

a consumer wants to get these types of daily purchased products, one available at near to their

house. Therefore the company uses this type of broad distribution channel for milk & butter

milk in other products like ghee, butter, cheese, milk powder, which are not daily purchased

products, consumer purchased it , from distributors or dealer, where stock is available. So for

this type of items the distribution channel is limited up to distributors or dealers.

41

INTERMEDIARIES

AUTHORIZED DISTRIBUTOR:

The company has appointed city – wise distributors company has

appointed total 85 authorized distributors in all over the Gujarat.

The authorized distributors are the main seller of the company. the

selling of the product is ultimately depends on term. Because after receiving the products from

the company, the responsibility has to take care of many things while they are selecting the

distributors.

The criteria for selecting the distributors are:

1. Financial position of the distributors.

2. No. of years in business.

3. Reputation.

4. Cold storage facility.

42

SALES TERITORY

Distribution is a set of marketing institution participating in the

marketing activities in the movement on the flow of goods or services from the primary

producer to ultimate consumers.

Vimal dairy ltd. Collects the milk from North Gujarat and makes

distribution of finished goods in all over the Gujarat. This networks in over the Gujarat this

networks consists of company, distributors, dealers, retailers, & consumers in Gujarat. There

are 50 distributors working as a distribution network. Some of the name of the cities is given

below:

Ahmedabad Mehsana

Bharuch Limadi

Siddhapur Ankleshwer

Kadi Unava

Baroda Halva

Surat Rajkot

Sikka Gondal

Morbi Jothpur

Bhavnagar Mahuva

Surendranagar Ghandhinagar

43

Shihi Jotana

Chansama Unja

Harij PatanADVERTISING

Advertising is the most important tools by which company can inform a

large number of customers about the product advertisement are the good decision for the high

level for selling.

Vimal Dairy has no any separate department for advertising. Advertising is

build up a brand loyalty, enhance moral of sales forces and dealer and capture company so the

expenditure on advertising is very low or nil.

Advertising is any paid from of non personnel presentation and promotion

of ideas, goods, or services by an identified sponsor.

In Dairy market, Vimal Dairy competes with number of competitions

(having more brand quality). That’s why vimal dairy brand must advertise more heavily to be

heard. They spend very small amount in advertising. They advertise their products only by

banners.

ADVERTISING MESSAGE:

“TEST THAT CARES FOR YOUR HEALTHY”

This message refers desirability, believability and exclusiveness.

Desirability: Customer main desire is test & health. Believability: Vimal dairy provides good test & with full of healthy products.

44

Exclusiveness: Vimal theme “test that cares for your healthy”

SALES PROMOTION

Sales promotion is a key ingredient is marketing campaigns.

Sales promotion consists of diverse collection of incentive tools, mostly short term, designed

to stimulate quicker or greater purchase of particular product or by consumers or the trade.

PURPOSE OF SALES PROMOTION:-

Prize and free sample to stimulate consumer trial, to attract new trials , to

rewards loyal customer and to increase the repurchase the rate of occasional users.

OBJECTIVE ON PROMOTION:-

For consumers, objectives include encouraging purchase of large size units,

building trial among non-users and attracting switchers away from competitor brand.

For retailers, objectives include persuading retailers to carry new items and

higher levels of inventory, encouraging stocking of related items, off setting competitor

promotions, building brand loyalty. And gaining entry in to new retailer outlets.

(A) Consumer Sales Promotion Tools :-

The main consumer promotion tools include sample, coupons, cash refund,

price pack, premium, advertising specialty, Point of purchase displays and demonstration,

contests, sweepstakes and games. Here, we discuss some of them,

45

1. Sample: -

A small amount of a product offered to the consumer for trail.

2. Coupons: -

Certificate that gives buyers a saving when they purchase a

specified product.

3. Premium: -

Good offered either free or at low cost as an Incentive to buy a

product.

4. Price Pack: -

Reduced price that is marked by the producers directly on the

label or packaging.

5. Cash Refund Offer: -

Offer of refund part of the purchase price of a product to

consumers who send a “Proof of purchase” to the manufacturer.

6. Advertising Specialty: -

Useful article imprinted with an advertiser’s name, gives as a

gift to consumer.

VIMAL DAIRY ADOPTED CONSUMER PROMOTION TOOLS AS FOLLOWS:-

46

Sample …. Vimal Dairy offers some free amount of vimal spray dried

skimmed milk powder pick up their stores. Prize …. Vimal Dairy introduced a scheme for

customers that if they purchase some amount of product they got a silver coin as a prize.

MARKETING RESEARCH

Various authors have defined it in different way. Research always

starts with the question or problem. Its purpose is to find out answer to question through

the application or scientific method. This is systematic and intensive study directed to word

a more complete knowledge of the subject study. Research can be classified in to two

different broad categories.

1. Basic research

2. Applied research

Market research is systematic and objective study of problems

relating to the market of goods and services. It may be emphasized that is not restricted to

many particular area of marketing. But it is applicable to all phase of aspect.

Marketing research is a key to the education of successful

marketing strategy of programmed research is used to study competition and analyses the

competitors product positioning and how to gain competitive advance stage. It is also an

important tools to study buyers behavior change in consumer life style or consumption pattern,

brand loyalty and also forecast market changes.

The new role of marketing research is directly difference from the

conventional one, where it was used for just studying behavior or for conventional role

marketing research unit the mid 1980 was considered luxury which only multinational afford,

however it is not so now realizing the contribution that marketing research makes more and

more campaign are now turning towards it.

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Marketing research is the systematic design collection and reporting of data

and finding relevant to a specific marketing situation facing the company.

Objective of marketing research:-

To know competitive position of Vimal dairy’s milk among the customer.

To know point of purchase of customer.

To know which brand of vimal dairy milk most preferable by its customer.

To know about average daily consumption of vimal dairy milk.

To find out the loyalty of customers towards the vimal dairy milk.

To deter mind the customer satisfaction for the vimal dairy milk.

To know the satisfaction level towards vimal dairy milk in the customer mind for

the different factor like quality, test, thickness, availability & price.

To know the satisfaction level for packing of vimal dairy’s milk.

To know how many customer are facing problems to get vimal milk as per their

requirement.

To know the complains of customer for the vimal dairy milk.

To know the suggestion, view, and complains for vimal dairy milk in the customer

mind.

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5.FINANCE

DEPARTMENT

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INTRODUCTION

Financial management is that part of managerial activity, which is

concerned with planning and controlling of firm’ financial resources. It is an applied branch of

general management; chief accountant duties of financial management are planning and

controlling management of corporate finance. Financial management is called upon to take

there major decision, financial and dividend decision. Financial management involves the

implementation of this three major decision. It is an integrate part of over all management

rather than a staff activity concerned with fund raising operations with sound management of

financial resources. Business can not achieve its objectives and may occur heavy losses.

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Because of vital importance of finance decision to the firm, it is essential

to setup a sound and efficient organization for the finance function. The finance department

will take care of all financial activities. The nature of finance department will differ from the

firm to firm. It will depend on factors such as the size of the firm, the nature of business

operations, capabilities of firm’s financial offers. Generally large companies give equal weight

age to finance department with other departments in the company. The small companies don’t

have separate finance department, but the account department itself carries out the activities of

finance departments. Chief account or manager of accounts heads the account department

In VIMAL DAIRY LTD. as, it is small company there is no separate

finance department. But the accounts department performs all the activities of financing.

Mr.Mahendrabhai Patel is the chief accountant of Vimal Dairy, who provided me various

information about finance.

This department report directly to managing director. The various functions

concerning accounting as well as financed such as raising organization capital investing it in

the profitable projects. This account department in consultation with top management performs

asset management working capital management.

ORGANISATION STRUCTURE OF FINANCE AND ACCOUNT DEPARTMENT

51

Board of Directors

Managing Directors

Significant accounting policies are noted on account of "Vimal Dairy Ltd,

for the year ended on 31st March 2009.

FINANCIAL PLANNING

The planning is a managerial function involving from among alternative,

selection of the enterprise objectives, policies, procedures and programs. It is deciding in

advance what is to be done that is plan means a projected course of action. Financial plan

provides a dividend picture of inflow and outflow of money, sources of funds and uses of the

funds. It deals naturally with the function of finance or the financial system of the firm. It

includes the determination of the firm’s goals, policies and procedures in the financial aspects.

52

Finance Manager

Chief Accountant

Account Assistant

Financial planning eliminates waste of resources. Planes are based on

accurate forecasts of future trends. Intelligent forecasting and planning preparing the enterprise

to face the future and many unprofitable ventures can be eliminated so that firm can establish

integrated approach to financial policies to realize prescribed common goals.

Financial planning should be based on financial forecast. The manager of

accounts is given responsibility for the financial planning. The company uses various

statistical techniques for sale forecasting. And sales forecasting finance plans are prepared.

Vimal Dairy Ltd. cash flow statements are prepared for weeks, quartile

month and year to find out cash inflow and cash outflow of the organization. Vimal Dairy Ltd.

had collected necessary funds only two sources of finance i.e. Bank loan and Equity Share

Capital which is subscribed by the promoters of the company. It had kept other sources of

finance open for future time

MANAGEMENT OF WORKING CAPITAL

Management of working capital usually involve management or

administration of current assets namely cash and marketable securities, account receivable and

inventories and also administration of current liabilities. The quantum of working capital in

business is dependent on various factors. Such as type of business, turnover of inventories,

term of purchase and sale, size of the business unit, process of manufacturing, seasonal

variations etc. the present company is engaged in manufacturing of capital goods. Therefore

naturally there is a high amount of working capital required.

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CASH: -

The cash is needed for various purposes in business. They may be speculative,

transitive and precautionary motives. The management of cash requires cash planning. It is a

technique to plan & control the use of the cash. Cash is the most liquid current asset. Finance

manager has to do cash planning. Manager the cash flows decide optimum balance of cash and

invest the surplus cash in marketable securities.

ACCOUNT RECEIVABLE: -

Trade credit is considered as an essential marketing tool,

acting as a bridge for movement of goods through production and distribution stage to

customer stage to customers’ trade credit creates receivables involves credit policy, monitoring

accounting receivables. A firm may follow a latent or a straight credit policy. Before following

establishing any credit policy finance manager has to evaluate the effect of policy in terms of

cost and benefits.

INIVENTORIES: -

Inventories constitute the most significant part of current assets of a

large majority of companies. The inventories are in form of raw material, work in process and

finish goods. The management of inventories is necessary to maintain a large size of inventory

for efficient and smooth production and sales operations and to maintain the minimum

investment in inventories is not desirable. The latest and modern techniques like economic

order quantity are used in the company for management of the inventories.

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MANAGAMENT OF FIXED ASSEETS

In any company it is necessary to calculate depreciation on its fixed assets. It

is not compulsory to calculate depreciation according to company act, 1956. But most of

calculate depreciation. There are two methods for calculating depreciation one is state line

method and second is down value method. Vimal Dairy Ltd. calculates depreciation with state

line method. In vimal dairy ltd, depreciation rate is 10% as per the company act, 1956.

Finance Management deals with not only the Procurement of fund but also

with the uti l ization of money. It means the procured funds must be utilized efficiently.

55

The allocation of funds is therefore an important function of finance

management. The allocation of fund involves the commitment of funds to assets and activities.

The systematic utilization of assets in the business is management of fixed assets.

Management of fixed assets is divided into two parts,

Tangible Assets: - plant & machinery, building, land etc.

Intangible Assets: - goodwill, patent etc.

Vimal Dairy Ltd has only tangible assets. It has no intangible assets.

BALANCE SHEET ON 31 ST MARCH 2009 (Rs. In lacks)

Liability Amount Assets Amount

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Capital

Reserve & surplus

Depreciation Fund

Secured loan

Unsecured loan

Current liabilities

Differ tax liabilities

275.50

203.48

390.44

1236.18

525.68

414.76

87.20

Fixed assets

Inventory

Current Assets :- Closing stock Loan & Advance Cash & Balance Debtors

1225.23

15.28

925.08 802.76 44.32 120.57

3133.24 3133.24

RATIO ANALYSIS

The relationship of one item to another expressed in a simple

mathematical form is known as the ratio. A company keeps fit by ensuring that among other

57

things, it various financial proportions are kept healthy. Its business performance can be

measured by the use of ratio.

A ratio is a quotient to two numbers. It must be interpreted against

some standard. In assessing the financial stability of a firm, a management should, a part from

a probability be interested in relative figures rather than absolute figure. In fact an analysis of

financial statements is possible only when figures are expressed as percentage or ratios. There

is growing body of evidence that ratios can be directly helpful as a basis for making

predictions.

A ratio is a mathematical relationship between two quantities. It is of

major importance for financial analysis. It engages qualitative measurement and shows

precisely how adequate is one key item in relation to another. To evaluate the financial

condition and the purpose of a firm the financial analyst need certain yardsticks. The yardstick

frequently is a ratio or an index relating two pieces of financial data to each other. Not only are

those who manage a company but also its shareholders and credit interested in knowing about

the financial position and / or earning capacity of that concern. There are many ways to

analyze a ratio. There are as follows.

(A) Liquidity Ratio:-

1. Current Ratio

2. Liquid Ratio

3. Acid – test Ratio

(B) Leverage Ratio:-

1. Proprietary Ratio

(A) LIQUIDITYRATIO:- “Liquidity refers to the ability of a firm to met its obligation in

the short run, usually one year.” Liquidity Ratios are generally based on the relationship

between current assets & current liabilities. The important Liquidity Ratios are as under:

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1. CURRENT RATIO:-

The current ratio is a measure out of the firm’s short-term

solvency. It indicates the availability of current asset in rupees for every one rupee of

current liability. A ratio of greater than one means that the firms have more current assets

than current claims against them. The current ratio is calculated by dividing current assets

by current liabilities. This most widely used ratio shows the proportion of current assets to

current liabilities. It is also know as “working capital ratio” as it is a measurement of

working capital available at a particular time, it is measure of sort term financial strength

of the business and shows whether the business will be able to meet its current liabilities as

and when they mature. The current ratio of vimal dairy ltd. is as follows. (Rs. In lacks)

Current Assets

Current Ratio = --------------------Current liabilities

1892.73 = -------------

414.76

=

2. LIQUID RATIO:- A variant of current ratio is the liquid ratio or quick ratio, which is

designed show the amount of cash available to meet immediate payments. It is obtained by

dividing the liquid assets by liquid liabilities. Liquid assets are obtained by deducting bank

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4.56:1

overdraft from current liabilities. The liquid ratio of vimal dairy ltd. is as follows. (Rs. In

lacks)

Liquid assetsLiquid Ratio = ---------------------

Liquid liabilities

C.A. - Stock = --------------------

C.L. – B.O.D.

967.95 = --------------------- 414.76

=

3. ACID – TEST RATIO:-

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2.33:1

The measure of absolute liquidity may be obtained by

comparing only cash and bank balance as readily marketable securities with liquid

liabilities. Thus the quick assets comprise only cash balance, bank balance and readily

marketable securities only, thus the acid – test ratio of Vimal dairy ltd. is as under. (Rs. In

lacks)

Quick assets Acid – test ratio: - = ---------------------

Liquid liabilities

44.32 = ------------

414.76

=

(B) LEVERAGE RATIO:-

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0.11:1

Leverage Ratio helps in assessing the risk arising from the

use of debt capital. The composition of capital of business and proportion of owner’s capital

and capital provided by outsiders are reflected by Leverage Ratio. The important Leverage

ratios are as under:

1. PROPRIETARY RATIO:-

The ratio shows the proportion of proprietors’’ funds to

the total assets employed in the business. The proprietors’ funds shareholders equity

consists of share capital and reserves and surplus. The proprietary ratio of Vimal dairy ltd.

is as under. (Rs. In lacks)

Proprietors’’ funds Proprietary Ratio = -------------------------- * 100

Total Assets

Share capital + reserve & surplus = -------------------------------------------- * 100

Total Assets

862.70.5+ 203.48 = ------------------------- * 100

3117.96

1066.18 = -------------- * 100 3117.96

= 0.3419 * 100

2. DEBT – EQUITY RATIO:-

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34.19

It established relationship between the outside long term liabilities & owners funds.

Debt – equity ratio of vimal dairy ltd. Is as under

(Rs. In lacks)

Long term liabilitiesDebt – Equity ratio = ------------------------- * 100 Shareholders fund

1261.86 = -------------------- * 100 1456.62

= 0.87 %

2. DEBT – ASSETS RATIO:-

Long term liabilitiesDebt equity ratio = --------------------------- Fixed assets

2328.04 = ---------------------- 2225.23

= 1.90

(C) PROFITABILITY RATIO:-

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Profitability reflects the financial result of business operation.

The important profitability ratios are as under:

1. NET PROFIT RATIO :-

This ratio shows the earnings left to shareholders as a percentage of

net sales. It provided a valuable understanding of the cost & profit structure of the firm.

Net profit (PAT) Net profit ratio = ----------------------- * 100 Net sales

194.01 = ------------------ * 100 4097.76

= 4.73 %

(D) TURNOVER RATION:-

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1. TOTAL ASSETS TURNOVER RATIO:-

Net sales Total assets turnover ratio = ------------------ Total Assets

4097.76 = ----------------- 3133.24

= 1.31

6.HUMAN

RESOURCES DEPARTMENT

65

INTRODUCTION

Personnel department is one of the vital departments in any organization

today. Main is active factored of production and there is doubt that it is the main controls &

manages machine, material, money & market. It is like the heart of any enterprise, without

manpower the organization can not run or work. Vimal Dairy Ltd. has a personnel department

which deals with various matters relating to the personnel.

Human resource or manpower is most valuable things of any organization.

We can define if as a lifeblood of any organization functioning. We can utilize it properly or at

maximum possible extent to achieve organizational as well as individual goals.

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Human resource or manpower is assets of any organization. Manpower

management or personnel management is related with the function of recruitment, selection,

promotion, demotion, transfer policy, wages and salary administration, collective bargaining,

union benefits and other activities.

According to Edward Flippo, “Personnel management is the planning,

organizing, and controlling of the procurement, development, compensation, integration,

maintenance and separation of the human resources to the end that individual, organizational

and societal objectives are accomplished”.

ORGANIZATION OF

HUMAN RESOURCE DEPARTMENT

The structure of department may be defined, as the organization of

Human Resource Department is the origin of efficiency of the company as well as the

profitability of the company. If the recruitment and training of Personnel Department is

scientific business units can surely groups. Thus, efficient organization of Personnel

Department is an essential part of business organization.

Although having so much benefits of Personnel Department, in this unit

there is no separate Personnel Department, but surely all the personnel matters are perfect.

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RECRUITMENT, SELECTION AND INDUCTION

Recruitment makes possible to acquire the needed employees. We can say

“Recruiting is the discovering of potential applicants for actual or anticipated organization

vacancies.” It means to attract the people to apply themselves for organization. As employee

for filling for the vacancies of supervisors or some time for managerial level.Vimal Dairy

perfects internal source.

For filling up these vacancies, it gives proper importance to the following source.

A. Advertising :- Advertising is the most effective and widely used to fill up its vacancies. Vimal

dairy vacancies newspaper and magazines.

B. Employment agency:- Some time filling up the vacancies, Vimal dairy contacts govt. operated distict

employment exchange office in which the job seeker got himself or herself registered. Distict

exchange offices offer some names that qualification are fitted and matched that of vacancies.

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The selection procedure is concerned with securing relevant information regarding

each applicant who affects himself as an employer to the organization and comparing qualities

of each applicant with the qualification and requirement of job and after selecting a fixed

number of personnel from large number of application.

In Vimal Dairy, the selection procedure differs for job to job. In other

words, for requirement of works, direct selection procedure is adopted. For technical and

managerial level post the following steps are used as a selection procedure.

I. InterviewII. Physical ExaminationIII. Placement

TRAINING & MANAGEMENT DEVELOPMENT

The efficiency of an organization depends on the ability to the personnel to

work and type of training he receives. Training is increase the production and productivity,

improving the quality, increase the morale of employee etc.This training involves on the job

training and off the job training for employees.

1. On the job training:-

Every person engaged in with business enters in it.

This type of training steps the guidelines about the work should be give the employee is

actually engaged with the work.

Vimal Dairy provides on the job training to its new

– blood injected. i.e. new workers. Before any worker is placed on the job, it is advisable to

inform him about the work pattern, to give practice about the work etc.

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2. Off the job training:- Many times, of the job training & development are

synonymously. For this training, train has to live his place and diverse his working days in

training. This training is given at another unit, institution or some time any outside. Vimal

dairy also gives this type of training to its employees. In short, we can say, this training is

given to the senior who is actually at the work place.

Many times conference, debates, seminars etc… are

held for providing the outside training and developing the ability and knowledge or managerial

level personnel.

JOB DESCRIPTION

Name ofpost

RequiredEducationalQualification

RequiredExperience

Criteria of skill

Requiredskill

MarketingManager

MBAwith the subject of

marketing

10 to 15 years in the field of

marketing/making of same products,Among 5 years ofManagerial level

Knowledge ofmarketing

activity

Excellent

Communicationskill

V. good

Leadership ExcellentWorking in team V. goodReporting skill V. goodDecision power ExcellentSelf confidence Excellent

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ProcurementManager

MBA/B.SC.(D.T)/B.V.SC. & A.H./

B.SC. (AGRI)

10 to 15 years in the field of

Procurement/making of same

products,Among 5 years ofManagerial level

Knowledge ofmarketing activity,clearing

requirementaccording to

HACCP

Excellent

Communicationskill

V. good

Leadership ExcellentWorking in team V. goodReporting skill V. goodKnowledge of raw material & hazards can be occurred due to

the same

V. good

Decision power ExcellentSelf confidence Excellent

MANAGER (MARKETING AND PROCUREMENT):-

Authorize to decide monthly and annual sales plan.

Authorize to appoint new dealer and new broker.

Authorize to decide terms and condition with the dealer, supplier and broker.

Authorize to procure raw material from any source.

Authorize to sanction the bills and brokerage sand for the clearance.

Administers all the activities of marketing and procurement.

To give sale to reach the target to sales plan.

Give dispatch instruction, so as to decide day to day production to dealer.

Provide finished product within agreed period and destination to dealer.

Solve any complement of broker, dealer or consumer himself give information at

factory to solve the same.

Evaluates suppliers according to their performance every year.

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REQUIRED COPETENCE CRITERIA:-

MANAGEMENT LEVEL :-

In following matrixes, three levels of management is considered.

1. Top level – who takes policy decision & authority to control resources

within the organization.

2. Middle level – who plans & works according to the guidelines & policies

provided by top management and controls to ensure proper implement

action ( process owners & MR comes in this category)

3. Low level – who are directly performs their work or may be responsible to

get the work from other like clerk & worker.

COPETENCE MEASUREMENT SCALE :-

1. Excellent - no further capacity required; can handle any conditions

(give mark 5)

2. Very good – Very much expert in respective ability; can handle most

of the situation (Give mark 4)

3. Good – Good enough to maintain any particular ability & related

performance (Give mark 3)

4. Average – So in respective ability; can not handle all types of

situations. (Give mark 2)

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5.Poor – Not been able to handle his/her abilities to get the

effectiveness or performance requirement(give mark 1)

PROMOTION & TRANSFER POLICY

Promotion means improvement in prestige, position, and responsibilities of

an employee within his/her organization. A mere shifting of an employee to a different job

which has better working hours, better location and more pleasant working conditions does not

amount to promotion. The new job is a promotion for the employee only when it carries

increased responsibilities and enhanced pay.

A transfer involves a change in the job of an employee without a change in

responsibility or remuneration. A transfer differs from a promotion in that the letter involves a

change in which a significant increase in responsibility, status and income occurs, but all these

ManagementLevel

Maximum Mark Acceptable Limit

Top Level 60Total 45 marks as well as for each individual criteria.

Middle Level5 x total skill criteria against each designation

Total 75 % marks as well as for each individual criteria minimum 3 marks.

Low Level 5 x total skill criteria against each designation

Total 65 % marks as well as for each individual criteria minimum 2 marks.

73

elements are stagnant in the former. Another difference is that transfer are regular and

frequent, as in banks and other govt. establishments but promotions are infrequent, if not

irregular.

In Vimal Dairy the promotion and transfer policy is generally depend on the

performance of the employee. It is depend upon their work progress. The main purpose of the

promotion and transfer policy is to motivate an employee to higher productivity and to attract

and retain the services of qualified and competent people.

PERFORMANCE APPRAISALSYSTEM

Performance appraisal is systematic, periodic & so far as humanly

possible, an impartial rating of an employee’s excellence in matters pertaining to his present

job & to this potentialities for company, of a man’s services on his job. The main purpose of

the performance appraisal is to provide systemization judgment to back up salary increases,

transfer, demotion or termination. They are used as a base for coaching & counseling the

individual by the superior there are so many method used for performance appraisal like

ranking system. Rating sales forced choice etc.

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Vimal Dairy is not using any specific method for performance appraisal. It takes

into account performance appraisal of person only when promotion is to be given. And if the

worker is efficient and possesses the necessary skills and working capacity then the HR

manager of the unit gives promotion to him by increasing post or salary.

TIME KEEPING SYSTEM

The time keeping system enable the organization to the relevant information

regarding the employee, present , absence , overtime , casual level , regularly etc.

Attendance is capturing through on line data capturing terminals. There are

two machines one is Time-In machine & other is Time-Out machine.

Time-In machine is use at the entering in the VIMAL DAIRY. Time-Out

machine is use at the time of going from VIMAL DAIRY by there employees.

Time office is also loading the leave foams and over time foams for

attendance of that employee.

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Final masking is done at 25th of the every month. Then it is given to

accounts department and according to it the pay-slip is prepared & that amount is deposited

directly to there employees accounts. And if there is any absentee is found than the salary is

cut from its pay-slip directly.

The vimal dairy is being operated under 3 shifts.

The time keeping helps the vimal dairy in deciding the wages and based on

level and overtime. It also helps in appraising the performance of personnel for promotion.

BENEFITS AND EMPLOYEE SERVICES

Benefits, which is give to employee services , denotes the equal

meaning. As management is concerned with attraction and keeping employee in organization ,

it reduces the labour turnover.

1. LEVEL :- Vimal dairy is providing & right leaves in a month and 12

leaves casual in its employee. For family planning, leaves are provided to

its employee.

2. BONUS :-

SHIFT TIME1st shift 12:00 A.M. TO 8:00 A.M2nd shift 8:00 A.M. TO 4:00 P.M.3rd shift 4:00 P.M. TO 12:00 A.M.

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Vimal dairy give the advantages of its bonus to its

employee. However provide the bonus in the form of cash and non cash.

In year the dairy has paid 10 % bonus of annual salary and 1 k.g. sweet to

all the employee on the Diwali.

3. HOLIDAY :- As the milk and its good are non – durable products, so

that holiday of production is based on weeded and festival is given on the

basis of routine.

The vimal dairy provides the service and facilities related to work that

is,

Vimal dairy provides uniform at reasonable prices.

The tea - canteen facility.

Quarter facility to needy workers.

Insurance facility to sick or injured workers under the factory premised.

It provides double wages on festival day.

WAGES AND SALARY ADMINISTRATION

The administration of wages and salary performed for establishing and

maintaining the equitable wages and salary structures and labour cost structure. It refers to the

financial aspects needs and motivation as well as rewards and according the manager interest

analyses the need of workers to determine the reward and compensation to the employee.

The graduation of salary adapted by vimal dairy is quite sound and

economical, as it doesn’t place burden of company. They desired not to publish it, but the

salary the scale and other allowances is completely regulated by govt. rules while paying the

salary to the employee.

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The wages means compensation give to labour and worker of

production level. The scale of wages gives offer from job to job and department to department

in vimal dairy. They are paying minimum wages of 70 Rs. As govt. rule and maximum wages

of 90 Rs. To its employee. The payment of wages and salary is made at the end of the each

month.

TRADE UNION

Trade unions are an essential feature of industry in every country. Trade

unions emerged as a reaction to the factory system and capitalistic society. In the early stage of

industrialization, working class in the absence of legal protection felt exploited at the hands of

employers. Workers joined hands to protect their interests through collective action. A trade

union is, thus an organized expression of the needs, aspirations and attitudes of the working

class.

Settlement of industrial disputes is very important for improving relation in

the organization. The trade union helps to remove the disputes of any organization.

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Vimal Dairy has no any trade union manager, but it is handled by the top

management. This company is always trying to solve the problems of its employees because

they want to maintain sound industrial relation and so far it is able to make its employees

satisfied.

PERSONNEL RECORDS

Personnel recorder means to maintain the records of the various persons

who are working in the organization. Its helps the management to get the information before

taking any decision like promotion , transfer , compensation , retirement etc. these records are

also useful at the selection of new employees in the future.

A record is a place of writing or a chart which provides ready information

and which preserves for future reference. It is includes employees address, phone number,

salaries, his designation etc.

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Vimal Dairy Ltd. has no separate employees’ personnel records. All

employees’ information is included in a single document.

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FINDINGS&

RECOMMANDATION

s

SWOT ANALYSIS

STRENGTH:-

Company has wide variety of the product mix.

Company has good brand awareness in rural areas.

Company has good distribution network in Gujarat.

Company provides qualitative product at competitive prices.

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Good quality machinery and equipments.

Customer oriented approach.

WEAKNESSES:-

Low advertising budget in compare to its competitors.

Low brand awareness nationally.

Company always follows in the leader in pricing policy.

No professional HR division.

FINDINGS

1. Vimal Dairy pricing starting is effective because they set their price by showing

target market.

2. The major competitor of vimal dairy is sardar and sagar & their contribution is

more with compare to vimal products sales in Mehsana area.

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3. Vimal Dairy packaging is satisfactory but their services & advertising are not so

good.

4. The company is doing its best or performing well by providing best packing services

that is demanded in to different measures and reasonable price that is lesser than its

competitors.

5. Advertising is most important thing because the buyer will buy only that product that

provides best quality, large quantity with reasonable price and advertising will make

them know about the company and its product.

6. Company should not be dependent on distributors & dealers for sales. They should

develop their own distribution network.

1. The company should offer consumers, retailer and distributor schemes.

SUGGESTION

1. Vimal Dairy introduced more than 2 brand names this makes target customer confuse.

2. The credit term of vimal dairy for their intermediaries is 1 week. This makes

intermediaries unsecured. They credit period for male sales.

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3. Vimal Dairy had to promote their sale by introduce more consumer promotion tools.

4. Vimal Dairy need to give advertisement on television of their products. The vimal

dairy made advertisement in such a way that the ad can conclude the entire milk

product same as Amul.

5. Vimal Dairy need to give more concentrates on milk advertising by television, banner

and pamphlet to make aware regarding vimal milk.

6. Company should request to retailers to recommended vimal milk to the customer.

7. Company should have to more concentrate to improve their brand image by their ISO

9002 certificate.

8. Company should have introduce some scheme for customer which can play an

important role in increasing awareness and interest in buying which increase the sales

volume.

BIBLIOGRAPHY

Books:- Phillips Kotler “Marketing Management”, Twelve Editions. By Tata

McGraw- Hill Publishing company Limited.

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K. Aswathappa “Human Resource Management”, Twelve Editions. By Tata

McGraw- Hill Publishing company Limited.

I.M. Pandey “Finance Management”, Twelve Editions. By Tata McGraw-

Hill Publishing company Limited.

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