REPORT ON INPLANT TRAINING

‘’THE ERODE DISTRICT

COOPERATIVE MILK PRODUCER’S UNION LIMITED’’
A report submitted in partial fulfillment of the requirement for the award of the degree of
BACHLOR OF COMMERCE (PROFESSIONAL ACCOUNTING)
By

Ms. A. SABANA
(Reg No: 20UPAV029)

Under the Guidance of

Dr. V. SELVAM, M.Com., M.Phil., Ph.D.
Assistant Professor
P&G RESEARCH DEPARTMENT OF COMMERCE

VIVENANANDHA
COLLEGE OF ARTS AND SCIENCES FOR WOMEN
[Autonomous]
An ISO 9001: 2015 Certified Institution
Affiliated to Periyar University, Approved by AICTE and
Re-Accredited with ‘A’ Grade by NAAC
Recognized under section 2(f) and 12(B) of UGC Act, 1956
Elayampalayam – 637 205. Tiruchengode, Namakkal Dt., Tamil Nadu

1
S.No Particulars Page No

1. Certificate

2. Declaration

3. Acknowledgment

4. Introduction

5. functions

6. Departments and sections

7. Photos

8. Conclusion

2
CERTIFICATE

3
Dr.V. SELVAM, M.Com., M.Phil., Ph.D.,

Assistant Professor in Commerce

Vivekanandha college of Arts and Science for women,(Autonomous)

Elayampalayam, Tiruchengode.

CERTIFICATE

This is to certify that the In plant Training Report entitled “”" is a Bonafide record of
research of work done by A.SABANA (Reg. No:20UPAV029) in the PG & Research Department
of Commerce, Vivekanandha College of Arts and Sciences for Women (Autonomous),
Tiruchengode and is submitted to Periyar University, Salem in partial fulfillment of requirements
for the award of the degree of BACHELOR OF COMMERCE (Professional Accounting)
under my Supervision and guidance and that the project has not previously formed the basis for
the award of any other degree, Diploma, Associate Ship, Fellowship or other titles and that the
dissertation represents the original work on the part of the candidates.

SIGNATURE OF THE GUIDE SIGNATURE OF HOD

4
DECLARATION

5
 DECLARATION

This is to certify that the project report entitled, “”submitted in partial fulfillment of the
degree of BACHELOR OF COMMERCE (Professional Accounting) is a bonafide record of
original research work done by me, under the guidance and supervision of
Dr.V.SELVAM Assistant Professor, PG & Research Department of Commerce,
Vivekanandha College of Arts and Sciences for Women (Autonomous) Elayampalyam,
Tiruchengode, under my guidance and supervision and it has not formed the basis for the award
of any degree diploma/ associate ship/fellowship or other similar title to any other university or
institution of higher learning.

Place: Elayampalyam SIGNATURE OF THE CANDIDATE

Date:

(A.SABANA)

6
ACKNOWLEDGEM
ENT

7
 ACKNOWLEDGEMENT
I thank GOD ALMIGHTY who has been a source of inspiration for my project.

I am indebted to thank our beloved VidhyaRathna, RashtriyaRatan, Hind Rattan and

Kongunattu sathanaiyalar Prof. Dr. M. KARUNANITHI, B.Pharm., M.S. Ph.D., D. Litt.,
Chairman and Secretary, Vivekanandha Educational Institutions & Hospitals for having
given me a golden opportunity to pursue my research study in Vivekanandha College of Arts and
Sciences for Women (Autonomous) Elayampalayam, Tiruchengode, Namakkal District during the
year 2022 on award of the degree of BACHELOR OF COMMERCE (Professional
Accounting).

I wish to put on record my profound indebtedness to Dr. K.PADMANABHAN, M.C.A.,

M.Phil., Ph.D. Controller of the Examination, Vivekanandha College of Arts and Sciences
for Women (Autonomous) for under whose encouragement the present study was initiated and
completed my words are too feeble to express my inner feeling of gratitude to her.

I also express my profound sense of gratitude to Dr. B.T. SURESHKUMAR, M.Sc.,

M.Phil., Ph.D., Principal, Vivekanandha College of Arts and Sciences for Women,
(Autonomous) for him continuous encouragement and positive spirit.

I also whole heartily thank Dr. V. KUMARAVEL., M.Com., MBA., M.Sc (IT)., M.Sc
(PHY)., M.PhIL., Ph.D., Director - Academic, PG & Research Department of Commerce,
Vivekanandha College of Arts and Science For Women (Autonomous), for the encouragement
and moral support given by him.

8
 I also whole heartily thank Dr. S.IRULAPPAN., M.Com., M.Phil., Ph.D., Director,
PG & Research Department of Commerce Vivekanandha College of Arts and Sciences For
Women (Autonomous) for the encouragement and moral support given by him.

It is my honour and privilege to express my immense gratitude to Dr. S.PRAKASH,

M.B.A., M.Phil., Ph.D, Head, PG& Research Department of Commerce, Vivekanandha
College of Arts and Sciences For Women (Autonomous) for his benevolent guidance,
Encouragement, Valuable Suggestions and assistance throughout the dissertation work.

I would like to convey my thanks to Dr. V.SELVAM., M.Com., M.Phil., Ph.D., Assistant
Professor, Department of Commerce, Vivekanandha College of Arts and Sciences for
Women (Autonomous) for their valuable suggestions and assistance throughout the project
work.

I offer my heart full thanks to all the Faculty Members of Department of Commerce,
Business men, Government employee and financial institution who have supplied data.

I especially convey my sincere thanks to my parents, brother and friends who have helped
me in all circumstances for my successful completion of my research work. Above all I thank the
Almighty who has been of great inspiration to me throughout this endeavor to complete this
successful work of mine.

(A.SABANA)

9
INTRODUCTION

10
Milk is nutrient rich food that provides a large number of nutrients relative to the
calories consumed Milk is delicious as a beverage and can be used as a base for
other drink such as hot chocolate.

The Milk of domesticated animals is also an important food source for humans.
Most Milk consumed in Western countries is from cows; other important sources
include sheep, goats, water buffalo, and camels. Milk is essentially an emulsion of
fat and protein in water, along with dissolved sugar, minerals (including calcium
and phosphorus), and vitamins, particularly vitamin B complex. Commercially
processed cow's Milk is commonly enriched with vitamins A and D.

Many countries require pasteurization to protect against naturally occurring and

artificially introduced microorganisms. Cooling further prevents spoilage (souring
and curdling). Fat from whole Milk (about 3.5%fat content) can be removed in a
separator to produce cream and leave low-fat Milk (1–2% fat) or skim Milk
(0.5%fat). Milk is usually homogenized, forced under high pressure through small
openings to distribute the fat evenly. It may also be condensed, evaporated, or
dehydrated for preservation and ease of transport. Other dairy products include
butter, cheese, and yogurt.

WORLD WIDE
June 1 is the world Milk day as announced by Food and
Agricultural Organization (FAO). Milk helps to children
to promote the growth of their muscles, bones, teeth, and
brain.

Pediatricians and nutrientionist agree that the balanced diet with a proportion of the
necessary carbohydrate, and proteins, moreover, the high content
of vitamin D in Milk is key component to Milk bone structure, bone recovery and
bone health. In addition, help to maintain the health of the teeth

11
1. Industry profile

2. Company profile

3. Procurement and input

4. Purchase department

5. Production department

6. Human resource and industrial relations

7. Finance department

8. Stores department

9. Marketing department

12
INDUSTRY
PROFILE

13
 INDUSTRY PROFILE
Milk has been an integral part of Indian food for centuries. It is estimated
that around 20% of the total milk produced in the country is consumed at
producer-household level and remaining is marketed through various
cooperatives, private dairies and vendors. Also of the total produce more
than 50% is procured by cooperatives and other private dairies.

While for cooperatives of the total milk procured 60% is consumed in fluid
form and rest is used for manufacturing processed value added dairy products;
for private dairies only 45% is marketed in fluid form and rest is processed into
value added dairy products like ghee, makhan etc. Still, several consumers in
urban areas prefer to buy loose milk from vendors due to the strong perception
that loose milk is fresh. Also, the current level of processing and packaging
capacity limits the availability of packaged milk.

The preferred dairy animal in India is buffalo unlike the majority of the
world market, which is dominated by cow milk. As high as 98% of milk is
produced in rural India, which caters to 72% of the total population, whereas the
urban sector with 28% population consumes 56% of total milk produced. Even
in urban India, as high as 83% of the consumed milk comes from the
unorganized traditional sector.

Presently only 12% of the milk market is represented by packaged and

branded pasteurized milk, valued at about Rs. 8,000 crores. Quality of milk sold
by unorganized sector however is inconsistent and so is the price across the
season in local areas. Also these vendors add water and caustic soda, which
makes the milk unhygienic.

India's dairy market is multi-layered. It's shaped like a pyramid with the
base made up of a vast market for low-cost milk. The bulk of the demand for
milk is among the poor in urban areas whose individual requirement is small,
maybe a glassful for use as whitener for their tea and coffee. Nevertheless, it
adds up to a sizable volume - millions of litres per day. In the major cities lies
an immense growth potential for the modern sector. Presently, barely 778 out
of 3,700 cities and towns are served by its milk distribution network,
dispensing hygienically packed wholesome, quality pasteurized milk.

14
COMPANY
PROFILE

15
 COMPANY PROFILE

AAVIN DAIRY, CHITHODE.

Aavin milk dairy in erode is one of the

leading businesses in milk dairy.
Aavin Erode Dairy is a consumer
services company based out of
Madhavaram Milk Colony, Chennai,
Tamil Nadu, India.

AAVIN DAIRY AT CHITHODE WAS OPENED BY OUR FORMER CHIEF MINISTER, FILMAKER, ACTOR,
PHILANTHROPIST DR. M.G. RAMACHANDRAN.

16
Outlay:

Operation Flood II Rs.126 lakhs. Operation Flood III Rs. 79 lakhs.

Capacity

Butter Production 10.0 M.T per day

Ghee Production 0.5 M.T Per day

TRAINING CENTRE:

train personnel in the primary co-operative milk societies in the District and
the near by Districts. The Management Committee members and producer
members are trained in management of primary societies in a better manner.
Aavin (Tamil: ஆஆஆஆ) is the trademark of Tamil Nadu Co-operative Milk
Producers' Federation Limited, a Tamil Nadu-based milk producer's union.
Aavin procures milk, processes it and sells milk and milk products to
consumers.

Meaning of name
'Aa' or 'ஆ' in Tamil means 'cow' and 'ஆஆஆ' means 'milk'. 'Aavin paal' ('ஆஆஆஆ ஆஆஆ')
translates to 'cow's milk'('ஆஆஆஆஆஆஆஆ').

PRODUCT’S SPECIALITY:

No chemical added
No coloring
No flavours
No adulteration
Real animal fat

17
HISTORY

The Dairy Development Department was established in Tamil Nadu in

the year 1958 to oversee and regulate milk production and commercial
distribution in the state. The Dairy Development Department took over control
of the milk cooperatives. It was replaced by the Tamil Nadu Cooperative Milk
Producers Federation Limited in the year 1981.

On February 1, 1981, the commercial activities of the cooperative were

handed over to Tamil Nadu Co-operative Milk Producers' Federation Limited
which sold milk and milk products under the trademark "aavin". Tamil Nadu is
one of the leading states in India in milk production with about 14.5 million
liters per day.

MILK PRODUCTS OF AAVIN

Aavin produces 4 varieties of milk.

Cow milk (3.5% fat)

Standardized Milk (4.5% fat)

Aavin gold (5% fat)

Full Cream Milk (6% fat)

It is also engaged in the manufacture of milk products such as milk khoa,

mysorepak, gulab jamun, khalakand, butter milk, lassi, curd yoghurt and ice-
creams.

CONTROVERSIES

In the Year 2012 there were widespread complaints about the mik
being adulterated. Especially when the milk was being transported from
cooperative societies to diaries. There was no serious action taken. However, in

18
the year 2014 a major adulteration racket was busted by the police in the district of
Villupuram. The modus operandi of the gang was to transfer 45 cans of milk from the lorry
that carries pure milk from Chennai Aavin dairy to Tiruvannamalai, into cans kept on mini
lorries. An equal quantity of water was filled to ensure that their tracks are covered. Aavin
later confirmed that it encountered a loss of INR 10 crores due to this racket.

FUNCTIONS OF THE DAIRY DEVELOPMENT PROGRAM:

The main function of the dairy development department includes
organizatioof societies, registration of societies, supervision and control of
primary milk co-operatives, district co-operative milk producers unions and
Tamilnadu co-operative milk producer’ s federation.

The dairy development department exercises statutatory functions – inquiry,

inspection, surcharge and supersession, appointment of special officers,
liquidation and winding up of dormant societies, etc

OBJECTIVES OF THE DAIRY DEVELOPMENT DEPARTMENT:

1) Assure a remunerative price for the milk produced by the member of the
milk producer’s co-operative societies through a stable, steady and well
organized market support.
2) Distribution of quality milk and milk products to the consumers has been
made by the way of establishing new chilling centers, pasteurization
plants and adoption of modern processing system at reasonable price.
3) To uplift socio-economic states of rural milk producers by offering
reasonable price and extending marketing facilities for milk produced in
rural areas.
4) Provision of free veterinary health cover to all animals owned by the
members of milk co-operatives, implementation of artificial insemination
program, supply of balanced cattle feed and inculcation of farmers with
the modern animal husbandry methods and practice.
PRIMARY DAIRY CO-OPERATIVES MILK SOCIETIES:

A minimum of the 25 or more individuals competent to contract under section

11 of the India contract act of 1872, owning milch animals can form a primary
dairy co-operative society, with one or more villages as its area of operation.
Such persons have to approach the circle deputy registrar’s office (dairying)
office functioning at the district for further guidance. The members of primary
co-operative milk society have to supply milk to the society which will procure
milk on quality basis and they will receive milk cost once in 10 days or15 days
from the society. Milch animals are provided with free veterinary

19
 Health cover, artificial insemination and the supply of balanced cattle feed.
Induction of farmers on modern animal husbandry practices are aimed at by
upgrading the milch animals and thereby improving their productivity in the
long run for the benefit of the members.

FUNCTIONS OF THE DISTRICT CO-OPERATIVE MILK

PRODUCER’S UNIONS:

There are 17 district co-operative milk producer’s unions functioning in

the state of Tamilnadu covering 30 districts. There are 15 dairies in district co-
operative milk producer’s unions with an installed processing capacity of 19.42
llpd. There are 36 chilling centers (functional) in district co-operative milk
producer’s unions with installed chilling capacities of 13.55 llpd.

1) Establishment of chilling centers

2) Formation of new milk routes to collect milk produced by the members
of the societies.
3) Collection of milk from societies, process and pack in modern dairy
plants by maintaining quality standards.
4) Supply of quality milk to Chennai metro under hygienic conditions
5) Fixation of procurement and selling price of milk
6) Increase of liquid milk sales by introducing innovative sales promotional
activities
7) Supply of inputs to the members of the societies.
8) Render veterinary health service and emergency service to the cattle of
members of primaries, to impart training on first aid and on artificial
insemination to the staff of the member societies
9) Extending artificial insemination services to the cattle owned by the
members of the milk co-operative societies
10) Providing milk cans
11) Salem, erode, Madurai and dharmapuri unions are the feeder balancing
dairies. Surplus milk in the district unions, after meeting their local sales is
diverted to the nearest feeder balancing dairies for conversion into milk products
such as skim milk powder, butter and ghee.

20
PROCUREMENT
AND INPUT

21
PROCUREMENT AND INPUT:

1) Year of Inception: 1967

2) The Area covered by the

Union: Erode district

3) The Major Departments Functioning:

i) Aavin dairy, Chithode.

ii) Aavin Cattle Feed Plant, Kasipalayam

Milk Procurement and Input Information:

1) No of Milk Collection Routes 32

2) No of Milk Producer’s Societies (Functional) : 840

3) Average Milk Procurement per day : 2.43 lakhs lits

4) Total no of milk producers 78843

5) No of societies having artificial insemination facility: 708

6) No of mobile veterinary routes : 14

7) No of Emergency veterinary units 3

8) Cattle feed supply to Societies/ month : 400.00 M.T

22
DAIRY PLANT INFORMATION

1) Installed Milk Handling Capacity : 3.0 lakh lits per day

2) Milk Powder Plant Capacity : 10 M.T per day

3) Butter production Capacity : 5 M.T per day

4) Ghee Production Capacity : 5 M.T per day

5) Products Manufactured : Milk, Butter, Ghee, Skim milk

Powder, SterilizedFlavored Milk, Khoa, Butter Milk, Curd,Gulab jamun mix.

Aavin procures its input from society and BMC (Bulk Milk Chiller).
When they procure milk from the society the milk will be tested regarding their
fat content and its SNF (Solid Non-Fat). The quality of the milk will be judged
based on these two contents present in the milk. The quality of the milk will be
tested in the laboratory to avoid adulteration. The fat content must not be less
than 3.8. If it is below 3.8, the milk will be rejected.

BULK MILK CHILLER:

It is also known as mini chiller. Its capacity is 5000 liters. The main
function of BMC is to collect and store milk from the society. It acts as an
intermediary as the milk is a perishable commodity. Where 11 BMC has
5000 capacity litres and 3BMC has 2000 capacity litres. The travelling
cost of BMC ranging from 30 paise per lit of milk which is a minimum
cost to 50 paise per liter of milk which is a maximum cost. The BMC is
located within the distance of 10 kms from the society. The travelling cost
of BMC is based upon the distance

i) Upto 2 kms -30 paise

ii) 2.1 kms to 4 kms -35 paise
iii) 4.1 kms to 6 kms - 40 paise
iv) 6.1 kms to 8 kms - 45 paise
v) 8.1 ms and above -50 paise

23
 .

RATIONAL BALANCING PROGRAM SCHEME (RBP):

It is a scheme introduced by the Government for the betterment of people

and the cattle. This scheme implies feeding of animal in a better way in order to
provide good quality of milk. Veterinary doctors and mobile doctors will visit
each society for the betterment of cattle’s health. These doctors suggests healthy
cattle feed and mineral mixer for the improvement of the quality of the milk.

The scheme functions with 900 people who are directly involved and 1500
people are indirectly involved. Nutrition charts and laptops were provided to the
farmers who are registered with the society in order to check the height and
weight of the cattle and to provide healthy feeding structure for the cattle

A kind of gas (methane) is generated by cow when it exhales. It is a kind

of problem which pollutes the surroundings. So in order to overcome this RBP
scheme is introduced by the Government. This scheme helps to provide healthy
feeding for the cattles.

24
PURCHASE
SECTION

25
PURCHASE SECTION:
Purchase section deals with the purchase of office use such as
stationeries like files, paper, pins, pens, writing pads, etc. and machinery spare
parts, tools and even equipments. The function of the purchase department
begins when there is a demand from any department like need for spare parts or
stationery items, etc. after which they go with 3 procedures for the purchase of
raw materials. The executive of the purchase section have to get permission
from the General Manager if the expenses lie within Rs.1 lakh. Otherwise they
have to get permission from the board chairman committee if the expenses lie
within Rs.5 lakh through quotation. On the other hand, when the expenditure is
too heavy i.e. above Rs.5 lakhs, they go for tender. It has 2 cover systems. They
are technical bit (specification bit of machines) and commercial bit (price alone
will be quoted). The committee will scrutinize the cost estimates of the
voluntary parties and then they select the supplier who quotes the reasonable
price. In case of purchasing expensive machinery, 80% of the money will be
paid when they receive the machinery. After its installation and proper working
of the machinery they will pay remaining 20%.

QUOTATION COMMITTEE:-

Deputy General Manager, Finance manager, Process & Maintenance

manager, Section head.

TENDER COMMITTEE:-

General Manager, Deputy Registrar Manager, Finance manager, Process

and Maintenance manager, Purchase manager.

26
PRODUCTION
DEPARTMENT

27
PRODUCTION DEPARTMENT:
Production is an important function in every organization. In aavin the
production can be maintained by process and maintenance department. Milk is
the main product for Aavin and other milk products also produced by Aavin. It
helps to reduce the spoilage of milk and help to increase the profit for the trade
union.

There are four managers in production department. They are manager

(process and maintain), manager (dairying), manager (pre-packing), manager
(packing). In a process & maintain section and pre-packing section, they have
operator for supervising the machineries operation. The production processes
functions as three shifts for a day. The shift timing as follows,

1st shift – From 6am to 2pm

2nd shift – from 2pm to 10pm

3rd shift – from 10pm to 6pm

28
PRODUCTION PROCESS:

1) MILK RECEPTION:

The manufacturing process starts from milk reception. The procurement

section duty ends with this reception after it is carried out by process and
maintain department. The milk reception has sufficient facilities for parking the
vans and tracks for collection ˚of milk carried in to the factory. In the reception
the milk received by the canisters from village societies and tankers from
BMC’s or other unions.

2) Plenture:

In this process the equipment used for finding curdling of milk is called as
plenture. It helps to detecting the curdling and reduces the spoilage of milk. It is
the preliminary test done by the experienced staffs only.

3) Sample for lab test:

After plenturing, sample can be taken for testing the fat percentage and
other testing. The test is done by quality control department.

4) Weighing:

The milk weight calculated in the modern weighing machine. The

weight is calculated in kilo grams and it is converted to liters.

5) Chilling:

The first step in processing of milk is chilling. Chilling of raw milk is to

increase life to the milk and to check the growth of micro organism present in
the milk and arrest further determination in quality to raw milk. The freshly
downed raw milk has been chilled to 4˚C and temperature until the milk
processed.

6) Stored in silo:

After finishing of chilling process the milk is stored in large size silo
which has a capacity of 66,000 liters. This function helps to balance the fat
contents.
The temperature is maintained as 5˚C and below.

29
 7) Standardization:

The next important step in processing is standardization of milk ref the quality
adjustment that is raising or decreasing of fats or solid non-fat percentage of
milk to desired level. The societies have to confirm to the legal and other
requirement prescribed in this regard. This standardization makes aavin milk as
high quality milk and creates demand among the people.

30
8) Pasteurization:

Demonstrates that healing wine to kill the micro organisms and helps in
preservation. The application of this process gives rise to the term
pasteurization.

9) Homogenization:

It means fat globules in the milk are subdivided into small particles of
uniform size after which the supply is done. The fat cannot be separated from
the homogenized milk.

10) Regeneration – 1:

It is the main function in every milk processing unit. It just process of

milk protecting from spoilage and increasing its expiry time as more than one
day. It usually followed in every home. In this process the milk’s temperature
increased from 10˚C to 80˚C. The regeneration machine has four stages. The
stage wise temperature given as below,

1st stage - 10˚C

2nd stage - 50˚C

3rd stage – 60˚C

4th stage - 80˚C

11) Holding:

After finishing the regeneration 1 st process the milk hold in holding tubes.
These are steel tubes designed as zing-sang method for milk getting same heat.
After the holding is end the milk sent to next level.

12) Regeneration – 2:

This is the process just opposite to regeneration -1. In the second

regeneration process milk’s temperature can decrease from 80˚C to 10˚C. It is
the last stage in the processing.

31
 13) Final storage:

Chithode aavin’s main dairy have 3 storage silos. After finishing of all the
above processes, the milk is stored in the silos for pre-packing. At the time of
storage the milk’s temperature maintained as 4˚C. The silo has the capacity of
6000liters.

14) Pre-packing section:

It is the final stage in the production of milk. Pre-packing section has

one manager and assistant staff for operating the function. The pre-packing
section depends on both manual and machinery works. In this section milk and
curd are packed. The milk is taken from storage silos through pipes and it is
sent to the pre-packing machine and the milk is packed in poly ethylene
packets. There are 13 milk packing machines and 1 curd packing machine in
the pre-packing section. This machine prints the date of manufacturing and it
has the UV light on the top of its head. This light helps to kill the bacteria in
the packing cover.

The pre-packing function starts from rinsing of grade (tray). The rinsing
function is done by automatic machine with water and sodium hydracids
powder. After rinsing the grade moved from the rinsing machine to packing
machine. The women workers arrange the milk packets in the trays. Each grade
has 12 liters capacity. At last the grades will be sent to the cooling chambers for
storing with minimum ˚C

32
 HUMAN
RESOURCE
SECTION &
INDUSTRIAL
RELATIONS

33
HUMAN RESOURCE SECTION & INDUSTRIAL RELATIONS:

GENERAL MANAGER

DEPUTY GENERAL MANAGER

ASSISTANT GENERAL MANGER

MANAGER

JUNIOR EXECUTIVE

JUNIOR TYPIST

OFFICER

This section involves the procesS of maintaining and controlling of the

organisation. It is a supervisory department of Madurai aavin. Totally there are

460 employees involved in aavin where 350 employees are working in

production unit and remaining are office staffs. The disciplinary action is taken
by this department. The various functions includes formulation of developing
human resource plan, policies, recruitment, training, development, promotion,
demotion, and performance appraisal. This department has an Assistant General
Manager, Deputy Managers, General Managers, committees, etc. In this
department there are subdivisions like industrial relations section, establishment
section, etc.

34
FUNCTIONS OF HR DEPARTMENT:

Recruitment of the new staff

Training and development of the workers
To fix the day to day activities of dairy
To sanction medical leave, earned leave, privilege leave
To look over the welfare services
Allocating salary, increments for daily routine workers
To prepare agenda for the meeting
To take some disciplinary actions in the organisation
To maintain employee register

Recruitment:

There are four types of recruitment. There are as follows

Office recruitment
Direct recruitment
Compassionate recruitment
Employment exchange

Leave:

There are 3 kinds of leave which an employee can avail. They are as follows

Medical leave – yearly 9 days

Privilege leave – 30 days per year
Casual leave – yearly 12 days

Employee should avail leave only after his intimation to their senior staff.
If not disciplinary action will be taken by the senior executive in the industrial
relations department. If the employee avails leave frequently he will be given
memo for explaining his reasons. Even if he supposes to repeat the same,
immediately he will be dismissed from the work.

The employee who saves their leave without availing it is said to be earned
leave. Where an employee can convert these earned leave into cash. There is no
overtime working hours in aavin.

35
Salary:

Pay fix of salary is different for every worker. Salary is based on

seniority and not based on Performance of the employees. Yearly once
increment will be made. If an employee is present on the national holidays such
as January 1, 26, may 1, august 15, diwali, Christmas, ramzan, pooja holidays
and pongal festival, he will be provided with double wages. Attendance on
national holidays will be maintained separately.

Increment:

There are 3 grades of increment which is provided to an employee (only

for mazdoor and technicians) based on his/her performance. They are

10 years – 6% selection grade

20 years – 6% special grade
30 years – 3% super grade

Bonus:

Bonus will be provided during festival seasons to the employees of aavin.

Diwali bonus Rs.7500, 1 kg ghee for all the staffs, ½ kg milk peda, ½ kg
mysorepak
Pongal bonus excretia Rs.1000, ½ kg ghee, 1 kg milk peda or ½ kg
mysorepak.

Retirement:

Retirement people are also provided with 1 kg skim milk powder and 1
kg milk peda. Age of retirement for every staff is 58 and for office assistant the
age is 60.

Training:

In 1985, the union established training centres with the main objective of
imparting training. They give training to the co-operative societies about the
milk procurement. The management committee members are also trained on
bow to manage their societies. They give lot of training to the employee who is
all in the procurement division.

36
INDUSTRIAL RELATIONS SECTION:

This section established to create relationship between the employees and

the management. Its main objective is to fulfil the employee wants and needs.
They handle all type of legal adjudication of the union. They clear the conflicts
arise from the inside and outside of the organisation. They conduct awareness
program and free medical camps for the employees benefit. This section has the
right to punish the employee when he/she doing malpractice.

EMPLOYEE WELFARE MEASURES:

Aavin follows many acts for the welfare of the employees according to the
factories act 1945.

Workers compensation:

The workers compensation is given to the workers foe any accident as per
workers compensation act 1923.

Insurance:

Every employee is insured as they are the human assets of any firm.
Production department, plant and machineries, finished products, transport
vehicles, cash and goods in the transit are insured. Rs.3,50,000 will be paid to
the deceased person’s family which is known as group insurance. The payment
is made by deducting Rs.15 from monthly salary of each staff from aavin. Every
april 1st an employee must be on duty.

Medical allowance:

To avail benefit from medical allowance he should be deducted with

Rs.125 each month. Rs.1,00,000 can be reimbursed by an employee in case of
major accident.

Canteen:

Meals, tiffin and tea are supplied to the employees at the reasonable rate by
the union canteen.

Other facilities:

Employees who are directly engaged with the production, can avail facilities
like

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 Yearly once 2 sets of
uniforms, Monthly once bath
soap, Yearly once slipper,
For the cold room employees, provided with shoes and coat,
Yearly once 2 sets of towels.

Employees who are engaged with office work and 2 ever silver tumbler
provided yearly once.

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FINANCE SECTION

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FINANCE SECTION:

Finance plays a vital role in any business. This department have co-
ordination with all the departments and it is a centralised department. All the
department of aavin is interconnected to the finance department for the
payments, fund allocations. Finance department also deals with any changes
regarding sales and income tax.

During the year 2014-15 aavin earned a profit of Rs.5 crore. During the
year 2015 – 2016 aavin incurred loss of Rs.1 crore. Milk will be purchased at
the cost of Rs.60 crore per month.

FUNCTIONS OF FINANCE SECTION:

To ascertain the financial position of the company.
To prepare the annual income and expenditure, profit and loss account,
balance sheet to be submitted to the administration section.
To distribute the milk payment list to all the sections.
To maintain the milk and its product’s sales income account.
The books maintained in this department are cash book, ledger and
balance sheet.

SECTORS OF FINANCE DEPARTMENT:

1. Milk bill section,
2. Pay bill section,
3. Marketing accounts section,
4. Cash section,
5. Pre-audit,
6. Payment section.

Under milk bill section, they record the payments made to the 1000
registered societies (approx.) for the supply of milk. The payments will be made
once in 10 days. So the payment to the societies comes around 3 instalments per
month. The payment is based on the litres of milk the society supplied. Based
on the fat content and SNF, the price of aavin milk is fixed and sold in the
market.

Under pay bill section, payroll of the employees are recorded. Under
marketing account’s section, they record the sales commission that are received

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from the agents (depots) who sell aavin milk and milk products. They pay Rs.70
lakh per month to these agents for selling their products.

Aavin supplies milk to institutions like big hotels, government hospitals,

jail, medical colleges, etc. on loan basis. These institutions make payments after
a month through cheque or cash. These payments will be recorded by cash
section.

Under pre-audit section, they record all transactions on code basis. This
section has pre-auditors from private companies for checking accounts. Under
payment section, they record the payments made in advance and other payments
made for the purchase of milk flim, stationary, machineries, packing materials
etc.

For each and every month, profit and loss of the company in ascertained
under final accounts section. They do calculate costing and cost of production
for every month. They also determine tax payment and profit and loss analysis
for every year.

Under co-operative audit, every 3 years staff will be changing. They have
rights to check records, reject expenditure if they seem not to be incurred. There
will be quarterly audit, half yearly audit, and final audit in each and every year.

CASHIER SECTION:

This section receives bulk amount every day. It may be around Rs.5 lakh to
Rs.6 lakh. The payment will be made by the customers. Every day money
transactions will take place in this section and this money will be collected by
the bank. This bank transaction will take place directly and they will record both
electronically and manually. They will maintain a separate account called petty
cash. Rs.2000 will be received from aavin and it is maintained by the cashier.
For the persons who are dealing with the bank related work (office messenger)
they will be provided with Rs.35 for their travelling expense. This section deals
with all other departments in aavin.

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 STORES
DEPARTMENT

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STORES DEPARTMENT:

Stores is used for storing all types of goods such as raw materials, semi
finished goods, finished goods to meet the contingencies in future period and it
impress proper handling of each goods. The stores department stores its goods
in 3 categories. They are
Main store
Engineering store
Stationeries store

@ Main store:

It is important section in the stores department. In this section, the

consumable goods are stored. The consumable goods are packing materials,
chemicals, lab equipments, cotton, etc. These types of goods are used
frequently. These stores adopt FIFO & LIFO method for these kinds of goods.

@ Engineering store:

In this section, the tools and equipments used for engineering works are
stored. They are different kinds of plant and machinery spare parts. This store
adopts weighted average method for these items.

@ Stationery store:
This section stores office equipments, pen, paper, writing pads, accounts
book, files and so on which will be needed for office work.

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MARKETING
SECTION

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 MARKETING SECTION:

Marketing is the brain of organisation. It is a social and managerial process

by which individuals and groups obtain what they need and want by creating,
offering and exchanging products. The simple word is the art of selling products
in the market. It brings new variety of quality goods to customer benefit.

MARKETING DEPARTMENT DETAILS

1) Total Number of Milk Selling Booths 932

2) Total Number of Parlours 41

3) Total Number of Milk marketing Zones 6

4) Types of Milk:

Type Pack Size M.R.P.

a) Cow Milk 500 ml Rs.20.00

b) Standardized Milk 500 ml Rs.21.00

c) Aavin Gold milk 200 ml Rs.09.00

d) Full cream milk 1000ml Rs.45.00

5) Products:

Type Pack Size M.R.P

a) Butter 100 g, /200 g/, 500 g Rs.40.00, Rs.76.00, Rs.180.00

b) Ghee 100ml, 200 ml, 500ml,1000ml,5000ml Rs.47.00,Rs .90.00

Rs,210,Rs.410.00 Rs.2050.00

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 c) Skim milk

Powder 500 g Rs.180.00

d) Milk Peda 50 g, 200 g Rs.20.00,Rs.78.00

500 g Rs.20.00,Rs.78.00

Rs.185.00

e) Mysorepa 250 g, 500 g Rs.115.00, Rs.220.00

f ) Flavoured Milk 200 ml bottle Rs.22.00

6)Average Milk sales per day :1.57 lakhs lit .

7) Total No of City Milk Distribution Routes : 43

8) Total No of Rural Milk Distribution Routes : 8

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DEPARTMENTAL SET UP:

The Chithode Aavin marketing department divides into 2 divisions. That

is urban and rural.

Urban means of within ERODE city. Rural denotes the outskirts of the
above cities.

Chithode Aavin enjoys 65% share among the organised sector in

sachet milk sales. Marketing of milk is carried out through 6 channels.

 Milk parlour

 Milk depots
Institutions

 Retail sellers
 Dropping point concessionaries
 Self help group

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FUNCTIONS OF MARKETING DEPARTMENT:
i) Supplying the product to ERODE city.
ii) Adding value to the most perishable commodity and providing
consumers with best quality at right place, right time and right
quantity.
iii) Forecasting the demand periodically and planning for the sales.
iv) Arranging vehicles in order to reach the product to the customers at
the right time.
v) Solving customer’s grievances.

ZONAL OFFICERS:

Zonal officers collect order from the customer and transport it to the
marketing indent office. Then the indent office prepares the supply sale
further management to distribute commodities in the right time. A zonal
officer can maintain 125 – 170 agents. The milk cards are also issued by the
zonal officers.

The zonal officers prepare the order for the next day requirement and send
it to marketing indent section through email or manually.

FUNCTIONS OF ZONAL OFFICER:

Cash collection from the concessionaries and retailers.

Cash sales throughout the month at different daates.
Supervising the deposits under their control.

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FOUNDER

49
PIPE SERVICES AND IBT SYSTEM

50
WATER COOLING PLANT

51
CONCLUSION :

It was a wonderful and learning experience for me.

Through a 7 days training in aavin, I get to know how the milk is
processed and distributed throughout the respected zonals. It also
helped in knowing the duties and responsibilities of each
department heads and how the process takes place in each
department. The study has also helped in knowing why the
quality of aavin is so good and what are the reasons for the
brand to stay on top of its competitor’s list.

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