Chapter 1 Industrial Overview and Profile Introduction to H.D.D.C.F. Haryana is well known for its highly productive milk cattle particularly for the murrah buffalos and haryana cows. The economy of the state is predominated based on the agriculture which comprises small holdings. More than 75% of the cultivators having land holding of less than 5 acres. As a subsidiary occupation they rear and breed cattle. The milk production was estimated to around 115 lt. lakh per day last year. The essence of various programs launched in the state had been to add the Anand Pattern of milk co-operative to Haryana. Anand Pattern In this pattern all the function of dairying milk procurement, the milk producers themselves control processing and marketing the supply of inputs relating to milk production and animal, husbandry are also provided at the door steps of producers.Dairying co-operative on and Anand Pattern in Haryana is a three tier co-operative structure consisting of primary milk producers’ co-operative societies at village level, milk producers’ co-operatives union at district level and the state, dairy federation. 1
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Chapter 1
Industrial Overview and Profile
Introduction to H.D.D.C.F.
Haryana is well known for its highly productive milk cattle particularly for the murrah buffalos
and haryana cows. The economy of the state is predominated based on the agriculture which
comprises small holdings. More than 75% of the cultivators having land holding of less than 5
acres. As a subsidiary occupation they rear and breed cattle. The milk production was estimated
to around 115 lt. lakh per day last year. The essence of various programs launched in the state
had been to add the Anand Pattern of milk co-operative to Haryana.
Anand Pattern
In this pattern all the function of dairying milk procurement, the milk producers themselves
control processing and marketing the supply of inputs relating to milk production and animal,
husbandry are also provided at the door steps of producers.Dairying co-operative on and Anand
Pattern in Haryana is a three tier co-operative structure consisting of primary milk producers’ co-
operative societies at village level, milk producers’ co-operatives union at district level and the
state, dairy federation.
Primary Milk Producers’ Co-operative Societies
There is organized one society for one village provided at least 40 milk producers willing to sell
at least 50 kg of milk per day. The objective of such a society is to promote the economics of its
members by improving the quality and increasing quality of milk production. A milk producer of
the age 18 or more and the resident of that village willing to pay admission of fee Rs.1 and
purchase a share of Rs. 101 are eligible for the membership of a primary milk society. Such a
member can only exercise his voting right if he is not defaulter to the society and has supplied at
least 200 liters of milk during the previous year. This society procures milk from its members
and supplies the same to the milk union.
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District Milk Producers’ Co-operative Union
A district co-operative milk producer union is in the middle level tier in the three tier dairy co-
operative structure. These unions organize new primary societies. A society must hold one share
of Rs. 100 of the union. Each member of the society had one vote irrespective of the no. of
shares. The primary societies purchase milk from producers and supply to milk unions. The
union either processes the milk or pass on to milk plant of the federation for further processing.
These unions carry out important function related to procurement, processing and marketing of
milk & milk products, supply of technical input to organization, organization of new primary
milk societies and supervision over the existing societies.
Dairy Federation
THE HARYANA DAIRY DEVELOPMENT CO-OPERATIVE FEDERATION ( HDDCF ) is
the state level apex body established to promote the economic interest of milk producers of
Haryana state particularly those belonging to weaker section of village community by purchase
of milk and processing of milk products and marketing there of by itself or through milk
unions.The membership of federation is open to all milk unions. Each member has to pay an
admission fee of Rs. 100/- at the time of admission and has to purchase at least on share of Rs.
100/-.
Operation Flood
A recent World Bank audit show that of the Rs 200 crores is invested in Operation Flood II. The
net return into the rural economy has been a whopping Rs. 24,000 crores per year over a period
of ten years, or a total of Rs.240,000crores in all. No other major development program has
matched this input-output ratio.Operation Flood, launched in 1970, has been instrumental in
helping the farmer mould their own development. Thus helping reach milk to consumers in 700
towns and cities through a National Milk Grid. It also helped eradicate the need for middlemen
thereby reducing the seasonal price variations. As a result of the co-operative structure the whole
exercise of production and distribution of milk and milk products has become economically
viable for farmer to undertake on their own.
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1.1Three Phases of development
The scheme sought to established milk producers’ co-operatives in the villages and make modern
technology available to them. The broad objectives are to increase milk production (“a flood of
milk”), augment rural incomes and transfer to milk producers the profits of milk marketing
which are hitherto enjoyed by well to do middlemen.
Phase I
Of Operation Flood was financed by the sale with in India of skimmed milk powder and butter oil gifted
by the EC countries via the World Food Program. As founder chairman of the National Dairy
Development Board (NDDB) of India, Dr. Kurien finalized the plans and negotiated the detail of EEC
assistance. He looked after the administration of the scheme as founder chairman of the erstwhile Indian
Dairy Corporation, the project authority for Operation Flood. During its first phase, the project aimed at
linking India’s 18 best milk sheds with the milk markets of the four metropolitan cities of Delhi, Mumbai,
Calcutta and Madras.
Phase II
Of the project, implemented during 1981-85 raised this to some 136 milk sheds linked to over 290 urban
markets. The seed capital rose from the sale of WFP/EEC gift products and World Bank loan had created
by end 1985, a self-sustaining system of 43,000 village co-operatives covering 4.25 million milk
producers. Milk powder production went up from 22,000 tones in the pre project year to1,40,000 tones in
1989, thanks to dairies set up under Operation flood. The EEC gifts thus helped to promote self-reliance.
Direct marketing of milk by producers’ co-operatives resulting in the transfer of profit from milk
contracts increased by several million liters per day.
Phase III
Of Operation Flood (1985-1996) enabled dairy co-operatives to rapidly build up the basic infrastructure
required to produce and market more and more milk daily. Facilities were created by the co-operatives to
provide better veterinary first-aid health care services to their producer members.
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1.2 The Indian Consumer
India’s growing middle class will drive change in food consumption. Dairy products are
highly income elastic.
The Indian consumer is moving from subsistence to basic food categories.
Gradual shift from only cereal consumption to include Dairy and other protein products.
The share of HH food expenditure on dairy increasing:-
- Currently 18% in Urban India (increased from 13% in 1989-99)
- Currently 15% in Rural India (increased from 10% in 1989-99)
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1.3 Dairy In India
PRE- INDEPENDENT DEVELOPMENT
It is said that in India people started rearing cattle for obtaining milk to be consumed as food around 2000
B.C. They priced the cow milk more than its meat.
A preliminary study concerning the composition of milk by indigenous cows and buffaloes was
conducted during 1914 on the advice of board of agriculture and attempts were made to establishing
pedigree herds of India breeds.
An empirical council of agriculture research at present INDIAN COUNCIL OF AGRICULTURE
RESSEARCH (I.C.A.R.) was establish during 1929.
The first milk union known as “LUCKNOW MILK PRODUCERS CO-OPERATIVES UNION
LIMITED” was established during 1937 and another co-operatives venture was established in KAIRA
district at ANAND during 1946.
POST-INDEPENDENT DEVELOPMENT
Separate Dairy Development Board was set up in 1965. Dairy acquire national reorganization.
Concept of planned approach and intensive cattle development was introduced at all levels.
Program under operation flood were launched. These programs open a way for the Dairy
Industry to come up as producers’ oriented industry.
KEY SUCCESS FACTORS
Branding.
Deep insight into the Indian consumer.
Innovative product offering.
Competitive and penetrative pricing especially for mass communication categories.
Distribution – Efficient nationwide dry and wet cold chain. High quality raw milk.
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Chapter-2
COMPANY PROFILE
From ancient times, Haryana is known as home of milk as a famous saying tells us
"Deshonmeindesh Haryana jitdoothdahikakhana" cattle of Haryana are world famous for their
high yielding capacity for instance Haryana cows and murrah buffaloes are among the best
yielder of milk in the country.
MISSION
We at VITA our endeavor to satisfy the taste and nutritional requirement of the customer of India
through excellence in market by our committed team throughCo-operative networking. We are
committed to offering quality products that provide best value for money.
KEY THRUST
Expand production of existing product.
Identify and marketing of new product.
Building capacity of marketing of fresh product.
Attract and retain quality manpower.
Integration of Co-operatives with common branding.
VALUES
Co-operative
Customer Orientation
Integrity
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Committed to producers
Excellence
Leadership
Quality
Innovation
Growth Orientation
Belongingness
Pride of Organization
Employee Satisfaction
QUALITY & FOOD SAFETY OBJECTIVES
Together we shall
WIN CUSTOMERS CONFIDENCE.
OPERTE QUALITY & FOOD SAFETY SYSTEM.
REDUCE WASTAGE AND POLLUTION.
KEEP ON IMPROVING
In order to achieve the following quality objectives are designed.
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SR.N. QUALITY OBJECTIVES RESPONSIBLE
FUNCTION
RESPONSIBLE
OFFICER
1. Delight our customers by providing
safe and high quality milk and
milk products.
QUQLITY
CONTROL
INCHARGE
QULITY CONTROL
2. To reduce use of water and energy
by 2% during the year. ENGINEERING INCHARGE
ENGINEERING
3. To achieve growth rate on minimum
5% sales during the year. SALE INCHARGE SALE
4. To reduce handling losses by 2%
from the previous year. PRODUCTION INCHARGE
PRODUCTION
5. Judicious and efficient utilization of
resources by employees’ motivation
and satisfaction.
PERSONNEL INCHARGE
PERSONNEL
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2.1Objectives of the company
The objective of the union shall be to carry our activities conductive to the economic
development of milk producers by production, procurement, processing and marketing of
commodities.
To achieve the objectivity the organization is carrying out activities under three
segments:-
Field Activities.
Processing Activities.
Marketing Activities.
Field Activate
To facilitate farmers (Milk Producers) in organizing.
Dairy Cooperation Societies for their Socio-economic uplift.
To purchase milk from Dairy Cooperation Societies on remunerative price.
To arrange transportation of milk from collection points of Dairy Cooperation societies to
Dairy Plant or Chilling Centers.
To arrange and provide milk cans testing equipments, testing chemicals, technological
items and stationary etc. required as per requirement of DCSs.
To arrange and make available inputs like cattle feed, mineral mixture, good quality
fodder sees, milk producers & items related to health care of mulch animal.
To arrange training of required know-how for farmers & functionaries of C.S.
To guide supervise & control the working of Dairy Cooperation Societies.
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Processing Activities
This Milk Union has one Dairy Plant at Sirsa leased by Haryana Dairy Federation and its main
products are Ghee, Powder, Paneer and liquid Milk, Dahi, Lassi under the brand name.
Marketing Activities
The marketing policy is devised and modified under the guidance of Haryana Dairy Federation
and in return royalty is to pay it Federation as per mutual agreement. Quality management policy
has been adopted and stands certified under ISO 9001-2000 & HACCP-15000 to ensure quality
and to get recognition in marketing circles.
Product Range
Toned milk
Double Toned milk
Full cream milk
Table butter
Ghee
Skimmed milk powder
Paneer
JalJeera
Mango Drink
Milk Cake
MithiLassi
NamkeenLassi
Capacity of milk plant: 1.5 Lakhs liter/ per day milk turned into powder : 1 lakhs / per
dayPasteurized milk as such Placed in market: 50,000 liter/ per day.
Milk Reception
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Milk plant, Sirsa is handled by Sirsa Co-operative milk Producer's Union Limited, Sirsa. Milk is
collected from the villages through docks are used for entry of Milk from trucks. A sample is
taken from each container from testing and sample giving positive test rejected and left of the
milk is put into tub from which through pipes milk goes for the further processing payment is
made to milk producer by weighing & measuring fat percentage. After reception two types of
tests are done to judge the quality of milk.
Platform test/ organoleptic tests
Laboratory tests
Composition of Milk
Contents Percentage
Fat 3.75
Water 87.34
Albumin –0.40
Casein 3.00
Lactose 4.70
Ash 0.75
Other 0.06
2.2Sales Offices
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HARYANA is one of the most progressive states of Republic of India. In the domain of
dairy development it is well known for its productive milk cattle particularly the 'Murrah'
Buffaloes and Haryana Cows. The economy of the state is predominantly based on agriculture.
People rear and breed cattle as a subsidiary occupation. Milk production in the State was
estimated around 128.18 lac litres per day during 1999-2000.
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There are five milk plants operating in the Cooperative Sector in Haryana. These are located at
Ambala, Jind, Rohtak, Sirsa and Ballabgarh having a handling capacity of 4,70,000 litres per
day.
Chilling Center
2.3District Milk Producers
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The Primary Milk Societies (PMS) functioning at the village level join to form a Milk Union for
carrying out such activities which are conducive and essential for the socio-economic
development of milk producers, by procuring and processing of milk and marketing of milk
products. The Board of Directors comprising 9 members elected out of the Chairmen of affiliated
Primary Milk Societies run the day-to-day administration through Chief Executive Officer.
These Unions either process milk at their own level or pass the same to the milk plants of other
milk unions for processing. They also organize new Primary Milk Societies at the village level.
A brief matrix of the Milk Unions is as follows:
Sr. No. Name of the Union Date of Registration
1. Ambala 10.03.1973
2. Rohtak 12.07.1991
3. Jind 10.07.1991
4. Kurukshetra 05.07.1991
5. Sirsa 10.01.1978
The essence of various programmes launched in the State has been to adopt the Anand pattern of
Milk Co-operatives. Under this system, all the functions of dairying like milk procurement,
processing and marketing are controlled by the Milk Producers themselves. It has three tier
system comprising milk Producers Societies at the village level, Milk Producers Co-operative
Union at the district level and the state Milk Federation as an apex body at the State level.
The Haryana Dairy Development Co-operative Federation Ltd. registered under Haryana
Co-operative Societies Act came into existence on April 1, 1977. Its authorized share capital is
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Rs.2000 lacs. It was established with the primary aim to promote economic interests of the milk
producers of Haryana particularly those belonging to weaker sections of the village community
by procuring and processing milk into milk products and marketing thereof by itself or through
its unions. In furtherance of the above objects, the Federation undertakes a number of activities
such as establishment of milk plants, marketing of VITA BRAND milk products of the Milk
Unions. Its turnover during 2006-07 was to the tune of Rs.355.00 crores. It also extends technical
guidance to the Unions in all spheres of personnel, technical, marketing and financial
management as well as makes them quality conscious, through use of modern methods of
laboratory testing of various products.
Quality - VITA the Hallmark of Quality
As part of stringent quality measures, milk required for processing VITA products is
procured from Dairy Cooperative Societies only. It is ensured that the milk is transported
to chilling centres and plants in clean and sterilized milk cans as quickly as possible. Al
quality measures as per Standard of Bureau of Indian Standards/Agmark are being
applied before the products are marketed. Well-equipped laboratories are functioning in
the chilling centres and milk plants to maintain ideal quality standards. VITA is the
endorsement of quality, a commendation we are Proud of.
Milk Plant (Located in Sirsa district at Begu Road, covering 15 acre area) was installed in
1983 as a chilling center by Haryana Dairy Development Co-operation later it came out
as a composite milk plant in the year 1996 with handling capacity of 1 lakh liters per day.
Haryana Dairy Corporation is converted into federation in 1979 under operation flood-I.
In November 1982, the responsibility of milk procurement through societies and tip was
handled over to milk unions under operation flood-2. Before November 19, 1982 milk
was collected directly from collection centres and system was not full proof.
In 1991 ten milk unions were converted into 5 milk unions by amalgamation to increase
the area of operation behind each milk plant for capacity feeding.
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In April 1992, Milk plants were leased out to milk unions to remove the confrontation
between milk unions and plants to remove the confrontation between milk unions and
plants to make the system similar to NDDB, Anand Pattern which has been applicable in
whole India in dairying field. This has been applicable in whole. India in dairying field.
This step stopped commission system applicable to unions Automotive of milk purchase
price was also given which was withdrawn later on the Nov. 1992.
Board of Directors
Designation Name Phone
Chairperson SmtChandravati 0172-2585507
Managing Director ShDevender Singh 0172-2586826,2585159
Chief Administrative
Officer ShPradeepKasni 0172-2583050
Organizational Structure
The head office of HDDFC limited is situated at Chandigarh, which looks after the functioning
of all the five milk plants and chilling centres. At the top level there is board of directions to
manage the activities of federation. The board is headed by chairman. Chairman of Co-operative
unions of different districts and register, co-operative societies is member of the board of
directors. The Chairman's post is held by person nominated by Haryana govt. managing director
is head of the institution in the top executive position.
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The business of plant is managed by General Manager subject to control and supervision of
Managing Director, HDDFC Ltd. General Manager of all five milk plants come directly under
the control of Managing Director. General Manager takes care of all the milk functional
departments at the plant except the milk procurement department, which is directly controlled by