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CHAPTER-1
1
HISTORY
Ludhiana city was founded in the time of Lodhi dynasty which ruled in Delhi
from 1451-1526 A.D. The legend goes that two Lodhi Chief Yusaf Khan and
Nihand Khan were deputed by Sikandar Lodhi (1489-1517 A.D.) to restore order in
this region. They camped at the site of present city of Ludhiana which was then a
village called Mir Hota. Yusaf Khan went across the river Sutlej in Jalandhar Doab
to check Khokhars who were plundering the Doab and made a settlement at
Sultanpur while Nihand Khan stayed back and founded the present city at the site of
village Mir Hota. The new town was originally known as Lodhi-ana, which means
the town of Lodi's. The name later changed to the present name Ludhiana.
LOCATION
Ludhiana is the most centrally located district which falls in the Malwa
region of the State of Punjab. For Administrative purposes it has been placed in the
Patiala Division. It lies between north Latitude 30o-34' and 31o-01' and east
longitude 75o-18' and 76o-20'. It is bounded on the north by River Sutlej which
separates it from Jalandhar district. The River also forms its northern boundary with
Hoshiarpur district. On other sides it shares common boundaries with Rupnagar
district in the East, Moga district in the West, and Sangrur & Patiala districts in the
South and South east respectively.
2
ADMINISTRATIVE SET-UP
Ludhiana is the one of the five districts constituting the Patiala Division.
1. No. of Sub - Divisions (Tehsils) 7
2. No. of Sub - Tehsils 6
3. No. of Blocks 12
4. No. of Towns 11
5. No. of Villages 915
6. No. of inhabited villages 896
7. No. of un-inhabited villages 19
8. No. of Parliament seats 1
9. No. Of Gram Panchayts 875
10. No. of Assembly seats 12
11. No. of Municipal Corporation 1
12. No. of Nagar Councils 6
13. No. of Nagar Panchayats 4
3
DETAILS
Tehsils -7 Sub-Tehsils - 6 Nagar Council -6
1. Ludhiana East Dehlon Jagraon
2. Ludhiana West Koom Kalan Raikot
3. Jagraon Machhiwara Samrala
4. Samrala Maloud Doraha
5. Khanna Mullanpur Payal
6. Payal Sidhwan Bet Khanna
7. Raikot
Nagar Panchayts - 4 Improvement Trusts -2
1. Machhiwara Ludhiana
2. Mullanpur Khanna
3. Maloud -
4. Sahnewal -
4
Market Committees - 13 Blocks - 12
1. Ludhiana Ludhiana -1
2. Mullanpur Ludhiana -2
3. Sahnewal Dehlon
4. Maloud Pakhowal
5. Kila Raipur Sudhar
6. Raikot Raikot
7. Machhiwara Machhiwara
8. Khanna Khanna
9. Jagraon Jagraon
10. Doraha Doraha
11. Sidhwanbet Sidhwanbet
12. Samrala Samrala
13. Hathur -
5
BRIEF PROFILE OF VERKA MILK PLANT
Milk Production is a very important part of the agricultural economy in the
State of Punjab. Punjab is one of the smallest States in Indian Union with a total
area of 50,362 Sq. Kms., which is 1.5% of the Indian landmass. Dairy Farming is an
age-old subsidiary profession in the rural areas of Punjab. Punjab is the second
largest milk producing state in India, producing around 10% of the country’s Milk
Production i.e. 8 million tones annually.
1. First Milk Plant, of the State was setup at Verka near Amritsar.
2. The brand name of Milk and Milk Products was adopted as Verka.
3. The Foundation stone of Milk Plant, Ludhiana was laid by Hon. S. Parkash
Singh Badal, the then Chief Minister of Punjab in 1970.
4. Commissioning of the Plant was done by Punjab Dairy Development
Corporation in 1974.
5. Inauguration was done by Late Smt. Indira Gandhi the then Prime Minister
of India.
6. The capacity of the plant was 1.00 lac. Litre per day, including powder plaht
of 7 MT. And now the milk handling capacity is 4.00 Lac Liter per day.
6
GENERAL INTRODUTION
Milk Plant, Ludhiana is a prestigious Milk plant of Punjab State famous all
over the country and abroad for the supply of quality milk products. It has got 1st
position in Northern Zone. Its foundation stone was laid by Mr. PARKASH SINGH
BADAL, the chief Minister of Punjab on June 22,1970. This plant was inaugurated
by our revered Prime Minister Smt. INDIRA GANDHI.
Milk plant is cooperative Society and all its profits and losses are shared by
the farmers (producers). Govt. does not provide any financial aid to Milk Plant
Ludhiana, but Govt. supervision and control is there. Law and policy Maker is
Govt. Here there is no dishonesty in milk plant. It is a very clean organization. The
handling capacity of this is now of 4 lakhs ton per day.
In the year 1983, PDDC merged into MILKFED and hence so control of
Milk Plant transferred to MILKFED in the year 1983. But with the efforts of the
Directors and milk producer's, control of Milk Plant transferred to milk unions, milk
unions’ means union of milk producers.
Milk Plant ,Ludhiana produces variety of milk products like milk, cake'
butter, ghee, skimmed milk powder and standardized milk, Milk Plant sells better
quality of pasteurized milk for the people. Ghee manufactured by this plant is not
only sold in the country but also supplied to foreign country like Dubai, Nepal.
7
The new achievement of this milk plant is to achieve the International
Quality Control ISO 9002. The Milk Plant Ludhiana is the first milk plant in India
who received ISO 9002. Milk plant Ludhiana received it due to following reasons.
1. Due to operational efficiency of machinery.
2. Due to reduction in consumption of material inputs
3. Due to improvements in fats and SNF recoveries.
4. Due to saving in labour with better utilization of manpower.
5. Overall improvement in Quality of Milk and Milk products besides improved
standards of cleanliness.
Profits of Milk plant is distributed of worker and Milk producers as
increase in rate of fat and SNF and to workers as bonus. In the year 1999 -1997 the
Milk Plant Ludhiana earned gross profit of Rs.20.9 cr. (approx), of these profit 27
lacs distributed to workers as a bonus and Rs. 80.90 distributed as assistance for
veterinary aid, seeds and to the Milk producer as a bonus.
Under the operation flood dairy programme the Govt. of India selected
the Ludhiana Distt. In Punjab, as one of the milk shed to develop a pattern. The
concept of this pattern is to develop dairy as an industries allied to agriculture and
prevent the harassment of farmers and consumer and to provide technical
assistance.
8
Top management of Milk Plant Ludhiana is controlled by Govt. The
Govt. does not give any aid to the plant but milk plant can receive loan etc. with the
guarantee of govt. Policy maker is the Govt but money is spent by milk producers.
Milk plant, Ludhiana manufactures a variety of milk products like
Butter, Ghee, Milk power: Milk cake, paneer etc. besides providing good quality
and hygienically processed pasteurized milk in pouches to the citizens of Ludhiana.
Its products are famous not only in Home Market but also its one product-ghee has
not good response in Foreign Market.
9
Machinery of best technology has been installed at milk Plant. The machinery is
available for the production of the Following milk products:
1. Pasteurized fluid milk.
2. Sterilized flavored milk.
3. Milk cake.
4. Paneer.
5. Lassi.
6. Ice Cream.
7. Butter.
8. Ghee.
9. Skimmed Milk powder.
10. Whole food.
11. Baby food.
12. Infant milk food.
10
But now only the following milk products are produced:
1. Pasteurized/sterilized milk.
2. Milk cake.
3. Paneer.
4. Butter.
5. Ghee.
6. Skimmed milk powder.
Lured by high profits, some new concern also tried to set up their own
plants. So our present margin has become less and future is looking dark ahead. But
Milk plant, Ludhiana is still standing ahead and is not loosing courage. There is
more competition is more new plants are emerging up. This plant has to set up its
position. The main efforts are being done to lessen the overheads and to increase the
turnover. The more milk we receive, the less the overhead will be there and more
production. Private sector pays more emphasis on advertisement as it has
maintained its position by always providing
better quality products Efforts are being done to procure maximum milk from the
villages.
Milk plant, Ludhiana is paying a vital role in socioeconomic
development of rural messes of Ludhiana Distt., where the market scene is
dominated by middlemen and traders. Milk Plant Ludhiana has steadily marched
11
towards fix goal of becoming a strong and viable milk plant and is now at No. 1 in
Northern Zone.
All its official as well as workers are assets to Milk Plant, Ludhiana
who are performing their duties diligently and with full zeal and energy. Also the
building of Milk Plant, Ludhiana is nicely planed and there is a great system of
work. We hope that it will maintain its reputation and goodwill. May it progress by
leaps and bounds.
PROFILE
Full Name : The Ludhiana Distt. Co-operative
Milk Producers Union Ltd.
Milk Plant, Ludhiana.
State : Punjab
Reg. Office : Verka Milk Plant, Ferozepur Road,
Ludhiana-141 004
Head Office : Punjab State Co-operative
Milk Producer Federation
United SCO 153-155,
Sector 34-A, Chandigarh Pb.
Date of Registration : 1972 with PDDC
Date of Inauguration : 31st Oct. 1974
Commencement of Production : Feb.197912
Constitution : Co-operative
Bankers : Punjab State Central
Co-operative Bank
Product Brand Name : Verka
Members : 78,000
No. of Societies : 800
Turnover : 180 Crore
Milk Chilling Center : 06
13
COMPANY DETAILS
The Punjab State Co-operative milk producer’s federation limited popularly
known as MILKFED. Punjab came into existence in 1973. It was backed by twin
objective of providing remunerative milk market to the milk producers of the state
on the one hand and to provide technical inputs to the milk producers for the
enhancement of milk production on the other.
Although the federation was registered much earlier, it took the centre
stage of Punjab dairy scenario in 1983 when all the milk plants of Punjab Dairy
development corporation Ltd were handed over to Co-operative sector and the
entire state was covered under OPERATION FLOOD to give the farmers better
value and to customers the better products. The organizational set up of MILKFED
is based on a three tier system:-
Milk producers Co-operative societies at village level
Milk Co-operative Unions at Districts level.
Co-operative milk marketing federation as an apex body at State level
{MILKFED}.
MILKFED with its network of over 5000 villages milk producers Co-
operative societies and over 3 lakhs milk producers form a strong network
providing assured market to milk producers.
MILKFED and its units have a workforce about 5000 employees and
also provide regular employment to about 600 transporters.
14
MILKFED’s NETWORK
MILKFED has its milk unions in almost all the districts of Punjab. These district
units are:-
1. Amritsar
2. Bathinda
3. Bassi pathana
4. Chandigarh
5. Faridkot
6. Ferozpur
7. Gurdaspur
8. Horshairpur
9. Jalandhar
10. Hoshiapur
11. Jalndhar
12. Ludhiana
13. Patiala
14. Ropar (Mohali)
15. Sangrur
These plants in all these unions are being run under the brand name
VERKA.
15
GROWTH OF VERKA AT GLANCE
Particulars Units 1990-95 1995-2000 2000-05
Functional societies Nos. 695 736 767
Membership (‘000) 57.2 64.0 69.2
Average daily milk
procurement(‘000)ltrs 180 269 272.6
Peak milk procurement (‘000)ltrs 267 374 376
Avg daily city supply (‘000)ltrs 100 150 154.3
Plant capacity utilization (%) 53.94 74.20 85.60
Interest on loan paid (Rs.in lakhs) 132.78 167.18 146.88
Depreciation (Rs. In lakhs) 144.71 199.90 144.00
Gross profit (before dep) (Rs.in lakhs) 339.51 559.07 348.29
Net profit (Rs. In lakhs) 62.02 359.17 204.29
Turnover Rs.in crores) 80.72 142.14 163.93
16
SALIENT FEATURES
i Milk plant has got ISO-9002 International Quality Certification Mark.
ii. Milk rate paid you the producers among alt the unions highest in the state
iii. Milk procurement highest among all the unions in the state.
iv. Milk procurement per society/day highest among all the unions in the state
v. 100% Milk producer’s co-operative societies are in profit.
vi. Aggregate profit of the societies in any year is the maximum among all the
unions in the state. Ever since inception, customer satisfaction and
consistency in quality is the key thrust area of this organization.
vii. Cattle feed sold to societies maximum among all the unions in the state.
viii. F.M.D. vaccination maximum among all the unions in the state
ix. Milk transportation cost lowest among all the unions in the state.
x. Milk chilling cost lowest among all the unions in the state.
xi. Average daily city supply maximum among all the unions in the state.
xii. Embryo transfer technology introduced in the field for the first time in north
India. Number of milk testers (new technology for fat testing at village level)
provided to milk. Societies is the maximum in the state.
xiii. Milk products selling at premium rates and ghee exported to gulf countries
Philippines & S.M.P. exported to Bangladesh.
xiv. Capacity utilization is the maximum on yearly basis.
xv. Fuel cost kg. milk is lowest among all the unions in the state.
xvi. Electricity cost per kg. Milk is lowest among all the unions in the state.
17
xvii. Leading union to start cooperative development programe to strengthen
cooperative base at the village level and to introduce progeny testing
programe for improvement of animal breed.
xviii. Annual turnover more than Rs.80 crores of rupees among all the unions in
the state.
xix. Annual profitability among all the union in the state.
18
OBJECTIVES OF THE COMPANY
1. To strengthen dairy sector, MILFED came into existence in 1978 and
Simultaneously Distt Milk unions were formed
2. Village level cooperative societies were also formed on “Anand Pattern”.
The system was run by the farmers, of the farmers and for the farmers.
3. To give remunerative prices to farmers and to ensure permanent market for
the whole year.
4 To provide technical inputs like artificial insemination, to improve the breed
of animals, animals health services, preventive disease treatment and
awareness regarding farm management etc.
5. To provide ISI marks good quality balanced Cattle feed and fodder seeds to
the farmers
19
NAME AND LOCATION OF GROUP COMPANIES & PRODUCTS
MANUFACTURE/ OFFERED BY THEM
MILKFED has a strong value of addition base through its 11 district Cooperative
Milk producer's Unions and 10 Milk plants having chilling centers having chilling
capacity of about 5 lacks Its. per day, all of whom have attained self sufficiency or
are on the thresh old of attaining it.
1. JALANDHAR
Official Address:-
General Manager
The Doaba Co-op Milk producer's unions Ltd.
G.T. Road bye pass, Jalandhar
Products:-
Ghee, S.M.P., W.M.P., Dairy Whitener,
Butter, Paneer, Vigour
(Malted Milk food) & Ice-cream
Installed Handling Capacity
300(' 000' Litres per day)
Milk Chilling Centers Under Jalandhar :-
Khat Kar Kalan, Shahkot, Sultan Pur Lodhi.
2. HOSHIARPUR
Official Address:-
General Manager,
The Hoshiarpur distt.co-op milk producer's Union Ltd.
Dharamshala Road Hoshiarpur.
Products:-
20
Ghee, S.M.P., W.M.P., Paneer etc.
Installed Handling Capacity
100 (‘000’Litre per day)
Milk Chilling Centre under hoshiarpur:-
Dasuya, Padrane,Balachour
3. SANGRUR
Official Address:-
General Manager,
The sangrur distt. Co-op Milk Producer's union Ltd
Post Box N 0-9 Sangrur.
Products:-
Ghee,S.M.P, W.M.P.,etc
Installed Handling capacity 150 (‘000' Litres Per day)
Milk Chilling Centres Under Sangrur:-
Changliwala, Jorepul, Sehna, Mehal Kalan
4. BATHINDA
Official Address:-
General Manager
The Bathinda Distt Co-op Milk producer's union Ltd
Dabwalli Road, Bathinda.
Products :-
Ghee, S.M.P., W.M.P, Butter, Paneer, Milk -cake, etc.
Installed handling capacity 125('000' Litres Per Day)
Milk Chilling Centres Under Bathinda:-
Bhikhi,Sardulgarh,Rampura Phool, Talwandi.
21
5. ROPAR
Official Address:-
General Manager,
The Ropar Distt. Co-Op Milk Producer's Union Ltd.
S.A.S.Nagar (Mohali)
Products:-
Ghee,Cheese,Paneer,Curd,etc .
Installed Handling Capacity 100('000' litre Per Day)
Milk Chilling Centres Under Ropar:-
Morinda, Norpur Bedi, Jhinjhri.
5. LUDHIANA
Official Address:-
General Manager,
The Ludhiana Distt.Co-Op Milk Producer's union Ltd
Jagroan Road, Ludhiana.
Products:-
Ghee, S.M.P., W.M.P, Butter, Paneer, Milk-Cake etc.
Installed handling Capacity 400('000' Litres Per Day)
Milk Chilling Cetres Under Ludhiana:-
Macahiwara, Rajkot, Ramgarh Saradana, Bija, Khanna
6. PATIALA
Official Address:-
General Manager
The Patiala Distt.Co-Op Milk Producers Union Ltd.
Vill. Hasanpur Sarhand Road,
Patiala
Products:-
22
Ghee, Cheese & S.F.M.
Installed Handling Capacity 100('000' Litre Per Day)
Milk Chilling Centres Under Patiala:-
Saman (HIF), Sirhind (HIF), Nabha (HIF)
7. GURDASPUR
Official Address:-
General Manager,
The Gurdaspur distt.Co-Op Milk Producer's Union Ltd
Pathankot Road,
Gurdaspur
Products:-
Ghee, S.M.P., W.M.P. & S.F.M.
Installed Handling Capacity 150('000' Litre Per Day)
Milk Chilling Centers Under Gurdaspur :-
Kalanaur,Tugalwala, Batala
8. AMRITSAR
Official Address:-
General Manager,
The Amritsar Distt.Co-Op Milk Producer's Union Ltd
Amritsar
Products:-
Ghee, S.M.P., W.M.P. Butter Paneer,
Milk-Cake & S.F.M.
Installed Handling Capacity
100('000’ Liters Per day)
Milk Chilling Centers Under Amritsar:-
Lopoke, Mehta, Patti, Kahdoorsabi sahib
TWO CATTLE FEED PLANTS23
1. KHANNA
Produced:-
ISI MarkII, Verka Special, Mineral Mixture
2. GHANIA-KA-BANGAR
Distt. Gurdaspur
Produced:-
ISI Market, Verka Special Mineral Mixture
The marketing department of MILKFED is highly organized and
professionally managed. Its turnover was 346 crores in 1995-96. It was 397 crores
in 1996-97, In 1997-98 it rose to 447 crores, it was 488 crores in 1998-99 and
finally its 523 crore in 1999-2000. It shows that is a contest rise in turnover.
AGENCY ALLOTMENT
There is a procedure for the allotment of a agency, which is followed
step by step. We will discuss each step in detail as follows:-
First of all the party who want to takes agency has to submit an
application in which party will request the managing director for the allotment of the
agency. The application should be written on the plain paper.
After receiving the application the marketing: department took the
survey to find that is there a need of agency? What is demand? Is there will be any
effect on the other Verka agencies? In it will be profitable. So survey is taken in
keeping in mind all the above questions. If the department finds that it will be
profitable then it will proceed further or it will be finished here. If the department
finds it profitable then the applicant party has to fill up a document named
24
"SURETY BOND". In, surety bonds any others two persons have to give surety for
the same party. The two persons who will fill up the surety bond will become the
guarantors of the party or dealers. The milk union can cover the loss or damage if
any because of default of the dealer from the guarantor’s up to 50,000 from each.
After receiving the surety bond the - managing director issues a temporary authority
letter to the applicant party. In this agency is allotted for sale of fluid milk on purely
temporary basis under home delivery scheme for that given area.
Terms & conditions for working of agency under the home delivery
scheme of milk union are given as follow: - As the agency is allotted i.e. all the
documents have been fully prepared as the agency in sound in the of milk plant.
The agent/dealer i.e. the honour of the agency according the demand
of the products in the location send his demand to be marketing department in the
milk plant.
25
ORGANISATION STRUCTURE
In the organization of Milk Plant, Ludhiana the test of management and
director of subordinated is divided according to the type of work involved. All
activities are grouped together according to certain function like production,
marketing, finance, personnel etc. and are put under the charge of different persons.
The persons incharge of a function is specialist in it and bring out the best in
himself
The top management of Milk Plant Ludhiana is selected through
voting by the members of the milk societies. Now the question arises that how the
milk societies are formed. So, firstly the field staff of milk plant, visits the various
villages for encouraging people to make co-operative department to procure milk
from the villagers minimum 35 members are required for making society. To
become the member of the society a person has to pay Rs.20 as membership fee and
then he purchases a share of Rs. 2. At present there are 65000 members of the milk
societies
26
The following chart shows the organizational structure:-
27
Board of Directors
Production Manager Personnel Manager Sales Manager
Executive Directors
Superintendent Superintendent
Foreman ForemanForeman Foreman
Sales Coordinator
Salesman
Financial Manager
Accountants
D General Managers
THE EXTENSION OF THE BRAND
Milk production daily 2.50 Lac LPD and Peak procurement 4.5 lac
LPD. After winning faith of innumerable consumers, Verka and did not stop. For
there was a scope for more. Changing times brought new trends, needs, tastes and
hopes. Verka dynamic as ever, too acquired newer forms. By adding value to milk
to satisfy a quality- conscious society. And what success! For, consumers could
have their own pick as we came up with varied varieties of cheese like the
Processed Cheddar Cheese, Cheese Spread, and cheese singles.
Machinery of best technology has been installed in the Milk Plant. The
machinery is available for the production of following milk products:
1. Pasteurized Fluid Milk.
2. Sterilized flavoured milk.
3. Milk cake
4. Paneer
5. Lassi
6. Ice Cream
7. Butter
8. Ghee
9. Skimmed Milk Powder
10. Whole Milk Powder.
11. Baby Food
12. Infant Milk Food
28
NECESSITY FOR PRODUCTION ENHANCEMENT
1. Milk production in the area increased manifold with the result. Resultantly
started receiving daily 2.50 LPD of milk.
2. To increase the participation of women 120 exclusively women societies are
organized with 15300 women members. through Punjab Women Dairy
Project a Central Govt. sponsored scheme.
3. Milk Production in the area increased manifold with the result. Resultantly
started receiving daily 2.50 Lac LPD of Milk and Peak procurement 4.5 ac
LPD
4. To cater to the increased demand, necessity of expansion of milk plant arose.
5. Capacity of milk Plant enhanced from 1 Lac to 4 lac Litres with additional
powder. Plant of 30 MTs.
6 Plant is having Latest State of Art Technology with MVR (Mechanical
Vapour Reprocesses) along with a drier with fluidized bed through which
agglomerated Powder is manufactured.
7. This improved the socio- economic conditions of marginal and poor farmers.
8. The profitability of the plant and turnover of the plant improved a lot.
9. No. of societies increased from 94 to 751 and its membership from 5400 to
78000.
10. All the societies are in net profit and distributing bonus to its members.
29
QUALITY OF MILK AND MILK PRODUCTS
1. To improve the quality of raw milk, Clean Milk Production program started
in 650 villages and resultantly the quality of products increased.
2. Milk Plant, Ludhiana was the First in India II) Dairy Sector to get ISO
Certification.
3. Under ISO Certification and HACCP (IS 15000) Milk Union started export
of Ghee, SMP to Gulf Countries Philippines, Manila, South Africa,
Singapore, Bangladesh etc. The export is more than 5.5 crore during the last
year.
4. To further improve the quality of Raw Milk, Milk Union started 365
Automatic milk collection Stations at village Level.
5. To meet the Challenges of WTO Milk Union started TIFAC program with
the help of Ministry of information.
6. 22 Bulk Milk Coolers have been installed at village Level to chill the milk on
this spot and to check bacterial count.
7. 28 model dairy demonstration farms have been established including milking
machines in distt. of Ludhiana which has encouraged the farmers to adopted
dairy on large scale.
8. Milk Union, Ludhiana is first in India which has installed Bectoscan worth
70 lacs and Somatic cell count machine have been installed at milk plant,
Ludhiana.
9. Further 23 BMC has been approved under central govt. Scheme on 75%
grant to be installed in societies.
30
PRESENT STATUS! ACHIEVEMENT OF THE PLANT
1. No. of societies increased from 94 to 751 and its membership from 5400 to
78000.
2. Milk Procurement has increased from 10200 LPD to 2,50,000 LPD
3. Highest milk price is being paid to the milk producers as compare to other
plants in the states
4. Products being manufactured by Ludhiana Plant are sold at premium rates
through out of the country and in the International Market.
5. City supply has increase from 66000 LPD to 1,60,000 LPD.
6. Turnover the plant touched to 180 crores Profit of the union has increased
manifold.
7. Capacity utilization of the plant is more than 80%.
8. Milk products like Ghee, Table Butter, Skimmed Milk Powder, Whole Milk
Powder, Curd, Paneer, Milk Cake etc are being manufactured by Milk Plant
Ludhiana.
9. Milk Union, Ludhiana is further progressive by leaps and bounds and it is
hoped that in the year to come, it will achieve excellent results and will help
improve social and economic condition of the people at large.
31
CHAPTER-2
32
SWOT ANALYSIS
The SWOT analyses is a systematic identification of internal strength
and weaknesses of the business and environment opportunities and threats being
faced by that business and provide information that is helpful, in matching the
firm’s resources and capabilities to the competitive environment in which it
operates. It is necessary for the organization to analyze its weakness that can be
removed by undertaking the project and what opportunities can be exploited and
strengths can be strengthen more. As such, it is instrumental in strategy formulation
and selection. It is dynamic and useful framework for choosing a staretgy.The
following diagram shows how a SWOT analysis fits into an environmental scan.
33
SWOT Analysis Framework
Environmental Scan
34
Internal Environment
External Environment
Strength OpportunityWeakness Threats
SUCCESS OF VERKA
Strengths of Verka: -
The oldest brand in milk.
Quality of the milk is good.
Marketing network system is very strong.
They have no as such competitor in market.
They are covering the each and every area of Ludhiana.
Weakness of Verka:
Leakage problem of Verka.
Margin to the retailer is very less.
No timing of the supply of the milk.
Services they provide are not up to mark.
35
CHAPTER-3
36
OBJECTIVES OF STUDY
To study the procurement, reception and processing of milk
To study the various milk products produced by Milk Plant Ludhiana.
To study the finance section and to study its financial activates.
37
CHAPTER-4
38
RESEARCH METHODOLOGY
Research methodology is a careful investigation or inquiry in a
systematic manner and finding solution to a problem in the research. This section of
the report describes the research methodology adopted to achieve the objectives of
the study. It includes the scope of the study, collection of data and analysis of data
of the study.
Scope of the study
The scope of study is to test the awareness of Verka Ghee in its home
location at Ludhiana. This is basically to test the brands synergy with its local
population which includes brand awareness, strength, consumer perception and
their behavior.
Research Design
The research design is an arrangement of condition for collection and
analysis of data in manner that aims to combine relevance to the research purpose
with economy in procedure. The research problem in clear cut terms helps the
researches to prepare a research design. It constitutes the blueprint for the
collection, measurement and analysis of data. It is the strategy for a study and the
plan by which the strategy is to be carried out. The research carried down is
descriptive in nature.
PRESENTATION OF TABULATED DATA
I have collected the data from consumers regarding Verka ghee have
done my survey in B.R.S. nagar, Inder nagar, Satguru nagar, Ghumar Mandi
Chownk, Pakhowal road & Maharaja nagar etc. in Ludhiana city.
I have collected the information regarding Verka ghee by the survey
& filled a retailer’s satisfaction sheet. I have done my survey by the response of the
consumers.
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PARTICULARS OF RESEARCH
SAMPLE SIZE:
100.
SAMPLING UNITS:
Bars, confectionary Stores, Bakeries departmental stores and General stores.
INSTRUMENT OF SURVEY:
Questionnaire.
CONTACT METHOD:
Personal method.
AREAS COVERED:
Under mentioned areas of Ludhiana City:
B.R.S. Nagar
Sarabha Nagar
Inder Nagar
Satguru Nagar
Aarti Chownk
Rajguru Nagar
Pakhowal Road
Ghumar Mandi Chownk
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SOURCES OF DATA
1) Primary Data
2) Secondary Data
3) Sampling Data
1. PRIMARY DATA
Control facts and figures collected systematically and presented for purpose
of drawing interfaces. The primary data is collected through survey method. These
are original observations connected for the first time. It is a pure data.
Direct interviewing has collected the primary data. For this interview
Questionnaire was prepared, the questionnaire was constructed by keeping the
objectives of the study in the time. These questions were directed to the dealers to
cover all the aspects relating to the product the question give the details about the
supply of the product, the awareness towards different brands. There problems etc.
the schedule cover many aspects about the brand choice, brand loyalty, availability
of the product, price awareness of the product etc.
2. SECONDARY DATA:
It has been collected through examination of some files records, magazines,
books and information received from the sales department of Verka Milk Plant,
Ludhiana.
3. SAMPLING DATA:
A sampling plan was designed in which three major decisions has been taken
about the sampling unit, sampling size and sampling procedure.
SAMPLING UNIT:
In this it was decided that who are to sample. The sampling unit of the
project is the dealers of Ludhiana, dealing with Verka Milk Plant.
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SAMPLING SIZE:
Here it was decided about the number of people to be served. I have adopted
for small sample size.
SAMPLING PROCEDURE:
This deal with the issue of the respondents are to be chosen. I have adopted
convenient judgment sampling procedure
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CHAPTER- 5
43
ANALYSIS AND INTERPRETATION
Mainly percentage method of analysis is used to interpret the result as
it is the most commonly and simplest method of interpretation. Preparation of tables
histogram, pie chart and other diagram was done so as give a simple and clear view
point of the result obtained by the study
For the purpose of analyzing, raw data was summarized in a master
table and from this table the results have been carried out. The questions having
alternative choices were analyzed by taking percentages. In the case of questions on
Likert’s point scale, the mean scores and percentages were calculated.
In case of ranking questions the total score has been added and final
ranking is given. The questions to which there were specific answers the ranges
were clubbed and percentages were calculated. In case of explanatory questions, the
general suggestions were summarized.
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QUESTIONNARIE FOR CONSUMERS
Q1. Do you like ghee?
Options Percentage
Yes 65%
No 35%
65%
35%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No
Percentage
Interpretation: 65% of the respondents said that they like Verka Ghee, while 35%
respondents do not like this.
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Q2. How much average quantity of Ghee do you buy monthly?
Options Percentage
Below 2 kg 40%
2-5 kg 35%
Above 5 kg 25%
40%
35%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Below 2 kg 2-5 kg Above 5 kg
Interpretation: 40% of the respondents used below 2kg. of ghee in a month, where
as 35% respondents use 2 to 5 kg. and 25% use above 5kg. verka ghee do not like
this.
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Q3. Which brand of ghee you like ?
Options Percentage
Uttam 14%
Verka 58%
Amul 7%
Gopika 10%
Nestle 6%
Home made 5%
14%
58%
7%
10%
6% 5%
Uttam Verka Amul Gopika Nestle Home made
Interpretation: 58% of the respondents like Verka Ghee followed by Uttam by
14%, Gopika by 10%, Amul by 7%, Nestle by 6% and homemade by 5%
respectively.
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Q4. Do you like Verka Ghee?
Options Percentage
Yes 58%
No 42%
58%
42%
Yes No
Interpretation: 58% of the respondents like Verka Ghee, while 42% respondents
do not like this.
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Q5. What are the reason for buying Verka ghee?
Options Percentage
Brand Image 17%
Good quality 20%
Good Taste 13%
Proper available 30%
All of these 20%
20%
35%
15%
5%
15%
10%
0%
5%
10%
15%
20%
25%
30%
35%
BrandImage
Goodquality
GoodTaste
Properavailable
All of these Homemade
Percentage
Interpretation: 30% of the respondents said that they buy Verka as it is easily
available, 20% go for quality, 17% brand image, 13% for good taste.
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Q6. What are the reason for not buying Verka ghee?
Options Percentage
Bad quality 15%
High Price 70%
Normal Taste 10%
All of these 5%
15%
70%
10%5%
0%
10%
20%
30%
40%
50%
60%
70%
Bad quality High Price Normal Taste All of these
Percentage
Interpretation: 70% of the respondents said that they do not buy Verka Ghee for
his high price and 15% for inferior quality.
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Q7. What sort of packing do you prefer?
Options Percentage
Poly Pack 70%
Tin 30%
70%
30%
Yes No
Interpretation: 70% of the respondents prefer poly packs and 30% use tin packs.
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Q8. Are you satisfied with publicity of Verka ghee?
Options Percentage
Yes 60%
No 40%
60%
40%
Yes No
Interpretation: 60% of the respondents said are satisfy with the publicity of verka
whereas 40% are not satisfied.
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Q9. Do you know any scheme on any brand of ghee?
Options Percentage
Yes 30%
No 70%
70%
30%
Yes No
Interpretation: 70% of the respondents are not aware about any schemes on any
brand of verka.
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Q10. Are you satisfied with Verka Ghee?
Options Percentage
Yes 58%
No 42%
58%
42%
Yes No
Interpretation: 58% of the respondents are satisfied with verka ghee where as 42%
of the respondents are not satisfied.
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CHAPTER- 6
55
FINDINGS
Milk Plant, Ludhiana is a sort of cooperative societies, near about
there 730 societies.
The city supply of milk has increased 2.7 times during the last five
years.
The production of butter has declined due to less availability of milk
for butter making.
The production of ghee has increased 2.7 times in last 5 years and it
has been due to good response not only from home market but also from
foreign market.
Due to perishable nature of milk cake the production has decreased
but in 1992-93 there has been in a increase in production and so on to the
further year 99.
There has been 2 time increase in production of milk powder during
last 5 years and it has been due to the good quality of milk powder produced
in Milk Plant, Ludhiana.
There had been about 14 Lacs profits during last year and it has not
increased as much as efforts were increased.
The milk plant, Ludhiana has invested in Milk Fed share and Central
Cooperative Bank share.
Milk Plant, Ludhiana has purchased cattle feed and seeds worth
3,57,43,638.20 and 8,822.25 respectively to supply them to the milk
producers.
The production of panner also declined due to it perishable nature.
There has been overall decrease in production by 50% during last five years.
Milk plant, Ludhiana has six milk bars of the marketing of various
milk products.
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Ghee is the main contributor in terms of money among various milk
products in the market.
Milk Plant, Ludhiana does not manufacture sterilized/flavored milk
bottles but brings it from Patiala for sale.
It also brings Verka vigour from Chandigarh for sale in the local
market.
It has its head office at Chandigarh which controls all the affairs of all
the milk plants.
Milk Plant, Ludhiana does not depend upon advertisement for the sale
of its milk products because there is no any competitor.
There is lack of advertisement because consumers do not know about
the whole product range offered by Verka.
Dealers are unhappy from the new bonus policy of the plant.
There is major problem of leakage of milk pouches due to old
machinery.
Dealer margin is less as compared to other Companies.
No personal selling team is send by Milk Plant to different localities
of the city to create awareness about Verka Milk & Milk products among
people.
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CHAPTER- 7
58
LIMITATION
Main problem is the packaging problem. I found that most of the dealers have
complaint of the packaging because if packaging is not up to the mark than milk
will be leaked on the packet and this also result in losses to the dealers.
After analyzing the study I have found that many problem are faced by the dealers
of Verka Milk & milk products.
According to the regulation they provided one leadership (agency) in 1 ½ km area
no other agency will provided in that 1 ½ km area. But it has been found that in
many areas there is existence of 2 agency in one km area. It will effects the dealer
sales of Verka milk & milk products because due to number of agencies dealers
came in competition with each other and they provide milk final consumer at lesser
margin.
Another problem is that transporters are not taking back the leakage pack from the
dealer at the time if delivery and more over handling of trays by laborers is not up
the mark.
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CHAPTER- 8
60
SUGGESTIONS
According to me first of all the Verka Milk Plant, Ludhiana should provide
training about storage of milk.
To arrange a camp to aware the consumers as well as dealers about
the Verka Milk plant & Products.
To increase the advertisements expenses so that awareness among
people increases.
To advertise its ISO-9002 and 15000 (HACCP) it will also increase
the sale of Verka because people know that ISO 9002 certified they
will buy the Verka milk products in large quantity.
According to me Verka Milk Plant of Ludhiana should improve
packaging of the milk which will satisfy the dealers as well as
consumers.
Improve the quality of milk & other products.
They should provide one agency in one area so that the dealers
competition will decrease and they can get appropriate margins.
They should provide some sale promotion schemes to the dealers so
that they can increase sale of Verka product.
Verka should provide de freeze to the dealer to store the milk for
saving the quality of milk.
Increase the commission of the dealers, increase the margin of dealer
& provide timely.
So in nutshell Verka cooperative should emphasis on the very fact of enhancement
in the services to be provided to the dealers & also to improve the quality of the
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various products which lead to higher satisfaction level among the dealers &
consumers which will in turn the sales.
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CHAPTER- 9
63
CONCLUSION
From the study I concluded that every person is aware about Verka Products but
every person is not aware about all products of Verka due to less advertisement.
Some of the middle class people are not able to buy the product because of its high
price. Consumers want decrement in price with best quality so that middle class
people can able to buy the products. There is a need to improve quality and design
of Verka Products, only 20% people are regular consumer of Verka so company has
to take these problems in mind if they want to compete with other brands and want
to become market leader.
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CHAPTER- 10
65
BIBLIOGRAPHY
ANNUAL REPORT OF VERKA MILK PLANT.
REPROT OF MILK CHILLING CENTRES.
REPORT OF DIFFERENT SOCIETIES.
BIRADAR, R.D. [1986] DAIRY INDUSTRY IN INDIA. DAIRY
GUIDE.
INDIAN INSTITUTE OF PUBLIC OPINION [1995]
MARKETING MANAGEMENT BY SONTAKI
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67
QUESTIONNARIE FOR CONSUMERS
NAME : AGE SEX
CITY: PHONE NO.
Q1. Do you like ghee?
a) Yes b) No
Q2. How much average quantity of Ghee do you buy monthly?
a) Below 2 kg. b) 2-5 kg.
c) Above 5 kg
Q3. Which brand of ghee you like ?
a) Uttam b) Verka
c) Amul d) Gopika
e) Nestle f) Home made
Q4. Do you like Verka Ghee?
a) Yes b) No
Q5. What are the reason for buying Verka ghee?
a) Brand image b) Good quality
c) Good Taste d) Proper available
e) All of these
Q6. What are the reason for not buying Verka ghee?
a) Bad quality b) High price
c) Normal Taste d) All of these
Q7. What sort of packing do you prefer?
a) Poly pack b) Tin
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Q8. Are you satisfied with publicity of Verka ghee?
a) Yes b) No
Q9. Do you know any scheme on any brand of ghee?
a) Yes b) No
Q10. Are you satisfied with Verka Ghee?
a) Yes b) No
Q11. Do you want give any suggestion then tick:-
a) Decrease the price of ghee
b) Improve the quality
c) Improve the package
d) Proper availability
e) Any other
(Please Specify)
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Signature____________
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