1.
A PROJECT REPORT ON
SUMMER TRAINING AT
“SURAT DISTRICT CO-OPERATIVE MILK UNION
LTD”
(SURAT)
Submitted By
Mr.Thummar Ankit
(S.Y.BBA –, Roll no - 1)
Submitted To
Prof. D. P. Pandiya B.B.A. Incharge & K.K.Parekh
Commerce Collage, Amreli.
ACADEMIC YEAR – 2006-07
1

2.
DECLARATION
I Undersigned Mr. Tummar Ankit M.
Student of S.Y. BBA.
Here by declare that all the details in the report on
“SURAT DISTRICT CO-OPERATIVE MILK
UNION LTD”
(Surat)
Is purely my own work and should not be given to any other university or
institute for any other purpose.
Place: Amreli
Date: (Mr. Thummar Ankit M.)
Roll no :- 1 (S.Y.BBA.)
2

3.
CERTIFICATECERTIFICATE
Prof. D. P. Pandiya B.B.A. Incharge & K.K.Parekh
Commerce Collage, Amreli.
Affited toAffited to
SAURASTRA UNIVERSITY , RAJKOT.SAURASTRA UNIVERSITY , RAJKOT.
This is to certify that the project report onThis is to certify that the project report on
“SURAT DISTRICT CO-OPERATIVE MILK UNION
LTD.”
(SUMUL)
is submitted byis submitted by Mr. Thummar Ankit M.Mr. Thummar Ankit M. ofof
S.Y. B.B.A.. Roll no.1S.Y. B.B.A.. Roll no.1 has satisfactory completed summerhas satisfactory completed summer
training project report is submitted in partial fulfillment oftraining project report is submitted in partial fulfillment of
requirement for the completion of “Practical Studies” at therequirement for the completion of “Practical Studies” at the
Second Year of B.B.A Programme.Second Year of B.B.A Programme.
Date :Date :
Prof. In-ChargeProf. In-Charge College SealCollege Seal Co-Co-
OrdinatorOrdinator
3

4.
Acknowledgement
I offer my sincere gratitude to SUMUL for providing the opportunity to work with
them. These experiences will rarely a strong foundation from my future carrier.
I would like to thanks Prof. D.P. Pandiya for her constant check over my activities,
which kept me on track.
I would like to offer my special thanks to respected Mr. Manish Bhatt, marketing
executive and all the staff members of SUMUL for having giving me guidance on the
necessary the theoretical aspect and methodology for handling my work, without valuable
guidance this project report can not be made possible.
Last but not least, I would like to thanks my “Papa” helping in the hour of need and
improving emotional and moral.
Place: Amreli
Date:
Yours faithfully
___________________
(Mr. Thummar Ankit M.)
4

5.
IndexIndex
No Contents Page
Declaration
Certificate-1
Certificate-2
Acknowledgement
Index
1 Chapter – 1 INTRODUCTION TO SUMUL
1.1 Introduction 9
1.2 History 11
1.3 Milestone of Sumul Dairy 12
1.4 SUMUL vision statement 13
1.5 Objective of SUMUL 14
1.6 Strategic focus of SUMUL 14
1.7 Awards 15
1.8 Work area of SUMUL 17
1.9 Unit of Sumul And Their Capacity 18
1.10Turnover of SUMUL 19
2 Chapter - 2 INTRODUCTIONS TO SUMUL PRODUCTS
2.1 Product mix 21
2.2 Growth path of sumul products 22
2.3 An overview of sumul products & sales 23
2.4 Major customer 39
2.5 Sales Volume 39
3 Chapter – 3 ORGANIZATION STRUCTURE
3.1 Organizational Structure 41
3.2 Board of Directors 42
5

6.
3.3 List of Competitors 43
4 Chapter – 4 HR DEPARTMENT
4.1 Hierarchy of HR Department 45
4.2 HR Objective 47
4.3 Role of HR in Sumul 47
4.4 HR Activities 50
4.5mployee Records 51
4.6Recruitment & Selection Process 53
4.7Training & Development System 54
4.8Performance appraisal System 54
4.9 Promotion & Transfer Policy 55
4.10Wages & Salary Structure 58
5 Chapter – 5 PRODUCTION DEPARTMENTS
5.1 Introduction 58
5.2 Hierarchy of Production Department 59
5.3 Production Plan 60
5.4 Activities of Production Department 60
5.5 Production Process 61
5.6 Micro Motion Studies 62
5.7 Support Services 63
5.8 Materials Handling Equipment 64
6 Chapter – 6 MARKETING DEPARTMENT
6.1 Hierarchy of Marketing Department 66
6.2 Objectives 66
6.3 Sumul’s Marketing System 67
6.4 Pricing Policy 68
6.5 Channel of Distribution 70
6.6 List of Costumer 71
6.7 Promotion Policy 75
6.8 System of Approaching to The Customer 75
6.9 Customer Satisfaction 76
6.10 Records of Customer Base 78
6

7.
7 Chapter – 7 FINANCE DEPARTMENT
7.1 Hierarchy 80
7.2 Objectives 81
7.3 Source of Finance 82
7.4 Activities 83
7.5 Payment Process 84
7.6 Study of Final, Accounts 85
7.7 Treasury Process 86
8 Chapter – 8 PURCHASE & STORES DEPARTMENT
8.1 Purchase departement Introduction 88
8.2 Organization 88
8.3 Activities 88
8.4 Activities of stores departement 89
8.5 Storing process 89
8.6 Inventory mgt 90
9 Chapter - 9 OTHER DEPARTMENT
9.1 Safety, Health & Environment 92
 Types of instruments used in testing
 Parameters tested
 Quality certificates
9.2 Transportation 93
 Penalty system
 Distribution System
10 Chapter - 10 Rotio Analaysis
95
7

8.
AN
INTRODUCTION
TO
“SUMUL”
(Surat District Co-operative Milk Producer’s Union LTD.)
CHAPTER CONTENTS
1.1 Introduction…………
1.2 History………..
1.3 Milestone of Sumul Dairy………….
1.4 Sumul’s vision statement………….
1.5 Objectives of sumul………..
1.6 Strategic focus of sumul………….
1.7 Awards………….
1.8 Work area of sumul………….
1.9 Unit of Sumul and Their Capacity………..
1.10Turnover of sumul…………..
8

9.
1.1 Introduction
The Sumul district co-operative milk producer’s union ltd (SUMUL Dairy) is a
co-operative endeavor committed to help marginal farmers and down trodden tribal to
lead to a healthy life and better standard of living through scientific animal husbandry
practices. Today’s Sumul enjoys the pride to serve milk and milk products to populous
Surat city and surrounding towns of it.
Sumul is holding strong brand equity in surat district and command more than
70% of the liquid milk in surat city, to make the distribute system fast and the delivered
milk in time they have as many as 6ilk transportation routes and 1531 agents (1386
regular and 145 full time)
The area of operation of sumul is the entire district of sumul. The present milk
procurement of 160.929,736 liters of milk annually makes it the third largest union in
the state after the AMUL and Mahesana dairy. The present market of Surat for liquid
milk is around 4.5 lack liters per day. This has necessary active development of “by
product” market. Products so far introduced are paneer, ghee, flavored milk, sweet,
shrikhand, lassi, butter milk etc..
9

10.
Sumul consist of 13 board of directors one each of 13 talukas of Surat district and they
from themselves elect the chairman. The total numbers of employees are about 1100
besides the contract workers.
Under sumul’s activities, Surat district is now firmly established as a milk shed and is
growing from strength to strength.
Hence, the Surat district co-operative milk producer’s union ltd, SUMUL is trade
name and literally meaning sound process, came in to existence on August 22,
1951… The formal commissioning of the pasteurization plant on March 17, 1968
was a turning point fro sumul.
10

11.
1.2 History
In the year 1939 Sardar Vallabhbhai Patel went and meet the farmers of Anand and told
them that for the trade of milk the dairy was necessary. At that time a person named
Tribhuvandas Patel came forward to take the leadership. During that time there was only one
dairy “POLSUN DAIRY” which belongs to British’s and they use to give very less price for
milk to the India Milkmen. In order to support the Indian farmers “AMUL DAIRY” was
established in the year 1946 DDR. Kurien was appointed at this dairy. Dr. Kurien along with
Tribhuvandas Patel took the leadership. Indian becomes independent in the year 1947. in the
meantime AMUL Dairy got order from the WHO to produce milk Powder from buffalo milk.
Dr. Kurien & Mr. Dalaya found the technique of producing milk from buffalo milk. After
booking at this Lal Bahadur Shatri took the visit of Ajampur village and promised them to
provide with more money fro the systematic development of the dairy industry. For the proper
development of the dairy industry NDDB was established at Anand. NDDB started operation –
1 programmer for all dairies in 1971-72 in the year 1977 operation Flood-2 started.
Transportation machinery & pressmen of milk at low cost and give importance. In the year
1990-operation flood-3 started. Here the farmers were, made aware about their right &
responsibilities high productivity of milk at low cost & so the co-operatic of development
programs started.
In the year 1998-99 two million tone of milk was produced in Indian & Indian becomes
the world’s first milk producing country. Which is more then 68 million of American. So it was
called “white revolution”
SUMUL has three chilling center at Bajipura, Navi Pardi and Uchchal for ensuring safe
delivery of raw milk to SUMUL where the milk is processed and pack into various type of
liquid milk and by product to improved the nutritional feed given to the cattle at village level,
the co-operative has establishment a cattle feed factory at chalthan. Sumul also has oil refined
oil at the village of DCS level.
11

12.
1.3 Milestone of Sumul Dairy
12

13.
1.4 Sumul’s Mission & Vision
Statement
“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH COMMITMENT
TO CONSUMER DELIGHT AND RESPECT FRO ALL. WE BELIEVE IN GROWTH AND
CONTINUOUS IMPROVEMENT THROUGH TEAMWORK, TRUST & EXCELLENCE
WITHOUT COMPROMISING OUR HONEDTY AND INTEGRITY”
It is quite obvious from the mission statement of the Sumul; the organization is
committed to customer satisfaction and believes in providing the highest quality of product to
them. Infect, for ensuring highest quality product, it has already put into practice TPM and
TQM tools in the organization besides many Quality Circle (QC) and Small Group Activity
(SGA) operating in the organization to achieve the vision and mission.
SUMUL VISION 2006:
Vision is a dream created in our working hours of the organization. It can be described
as a living picture of future. It is inspired by the values that we cherish
Year 2005 Year 2006
TURNOVER RS.551 Corers RS. 522 Corers
MILK PROCUREMENT 7,51,000 Liters 8,50,000 Liters
MILK SALE 5,51,000 Liters 5,51,000 Liters
QUALITY International std. ISO 9000
HAACCP
International std. ISO 9000
HAACCP
PRODUCTION COST Minimum Production cost Minimum Production cost
DISTRIBUTION SYSTEM Consumers oriented, Quick
and effective
Consumers oriented, Quick
and effective
13

14.
1.5 Objectives of Sumul
(1) To providing guaranteed remunerative milk market round the year for all the
marketable surplus of number producers in their villages.
(2) To procure milk, process it in to good quality milk/milk product and market it most
economically and efficiently to give maximum overall net returns to the producers and
general satisfaction to the consumers.
(3) To provide essential technical inputs and service to the producers at their step in an
economic and efficient manner and also in a way most to them to increase milk production
and to reduce the cost of production.
(4) To provides maximum return to producers.
1.6 Strategic focus of SUMUL
 Co-operative Focus : Village level development, Clean Milk Production &
Veterinary Services
 Customer & market focus : Relationship, Awareness & Product availability as per
their need and time competitors Watch, Own agents relationship, market research
 Quality Focus : Continuous Improvement in Quality defined according to Customers
 Organization focus : Think globally and act locally
14

15.
1.7 Awards
Hon. Collector (Surat) Smt. Sangeeta Singh is
giving “Quality Excellence Award 2000-01” to
Shri. P. R. Patel, MD, Sumul
Shri. P. R. Patel, MD, Sumul receiving Shield
of “Manager of the Year Award 2000-2001”
from Dr. B. C. Naidu, President Surat
Management Association
at Hotel Holiday Inn, Surat
Sumul Team presenting “Case study
on Success Story of TPM at Sumul”
& SGA on the occasion of Award Ceremony
for “Manager of the Year
Award 2000-2001”
Sumul reveiving the IMC RBNQA Certificate
of Merit 2002
shri. Manubhai A. Patel, Chairman of Sumul
reveiving the IMC RBNQA Certificate of Merit
2002
Chairman of Surat District Co-operative Milk
Producers’ Union Ltd. Surat . Addressing the
audience at Hirachand Walchand holl at
Mumbai, IMC
15

16.
CIO magazine's 18th annual CIO 100 Awards :
CIO is a magazine for IT and Business executives, published by CXO Media Inc. to meet the
needs of CIOs (Chief Information Officers) and other information executives. CIO is read by
more than 140,000 CIOs and senior executives who oversee annual IT budgets in excess of
$175 million. CXO Media Inc. is an IDG (International Data Group) company.
Every year, the CIO 100 Awards honor 100 companies that demonstrate excellence and
achievement in a chosen theme.
The process for choosing the CIO 100 honorees is systematic and very competitive. A new
theme is chosen every year. Once the theme is selected, they develop an online application for
companies to submit that will identify several aspects of their achievement.
Teams of CIO editors and writers make initial recommendations about each entrant. They
debate how each company stacks up against the others in terms of at length and breadth of their
practices, their creativity, specific measurable results and markers achieved. Once they are
satisfied with the achievements against other applicants, they only then select the company for
the award.
Surat District Co-operative Milk Producers' Union Ltd. has been selected as an honoree
for CIO magazine's 18th annual CIO 100 Awards. Based on our outstanding application,
their editors have chosen our company as one of 100 organizations that truly exemplifies a bold
enterprise. Boldness is the willingness to assume significant risk for the sake of great reward.
Sumul Dairy is having the drive to reach for the prize, the guts to embrace the dangers, and the
discipline to create a mitigation plan and stick to it.
There are two components to winning this prestigious award: inclusion in the special CIO 100
issue of the magazine in August, and recognition at a black-tie awards dinner at the CIO 100
Symposium & Awards Ceremony, August 21-23, 2005, at the Hotel del Coronado in
Coronado, USA. The award was received by our Managing Director Mr. Pramthesh Patel along
with our board director Mr. Arvindbhai Patel on 23 rd of August, 2005. Our CIO Mr. Satyen
Naik has contributed significantly for achieving this award.
16

17.
1.8 Work Area of SUMUL
Main Dairy Plant Cilling Centre
km distance from surat
Taluka/ Tahsil Name Cattle Feed Factory
SUMUL dairy is located near railway station road in Surat. It covers 15,000 – acre
land. Sumul provides milk collection facilities at the producer’s door in each village co-
operative, where milk is speedily, efficiently and economically transported twice daily to its
dairy plant and chilling centers for processing and marketing.
Since the milk procurement system has been extended far and wide in the entire
district. Sumul have five chilling center at Bajipura, Uchchal, Navi Pardi, Chaved and
Dediapada site at a distance of 50,105,25,110,146 km respectively from Surat city. The chilled
is then transferred to the mail plant at Surat railway station road.
1.9 Unit of SUMUL & Their Capacity
17

18.
No. Chilling Center Establishment Capacity in LPD Distance from
Surat (km )
1 Sumul dairy 1951 500000 0
2 Bajipura 1975 300000 50
3 Uchchhal 1982 100000 105
4 Navi Pardi 1996 200000 25
5 Sumuldan 1970 300 mt/day 20
These 5 chilling center have provided have provided equal opportunities of milk
marketing to the distantly inhabited tribal milk producers, which aids the economy of their milk
production enterprise or else they would have been obliged to dispose of their milk to the
middlemen at very low price. These chilling centers were established with a view to improve
the quality of milk and ease pressure at its headquarters. A large plot of area was bought while
establishing Navi Pardi Chilling Center keeping in mind to shift the dairy plant from city, if the
need arises in future.
1.10 Turn Over of the Company
18

19.
0
100
200
300
400
500
600
94-95 95-96 96-97 97-98 98-99 99-
2000
2000-
01
2001-
02
2002-
03
2003-
04
2004-
05
From the study of the above diagram, we can see that Sumul has made a continuous
progress in their profit making figures. The present profit of the firm is 48 crores more
than the profit of the previous year.
19

20.
An
INTRODUCTION
To
“The Product of Sumul”
CHAPTER CONTENTS
2.1 Product mix………..
2.2 Growth path of Sumul product…………
2.3 An overview of Sumul’s products & sales………..
2.4 Major customers……….
2.5 Sales volume……..
20

21.
2.1 Product Mix of SUMUL Dairy
Products Mix: “the set of all products and items that a particular seller offers for sales
to buyer.”
Homogenized
Toned Milk
Liquid Milk
Whole Milk
Pasteurized
Standard Milk
Milk Products
Cow Milk
Skimmed
Milk
White Butter
Ghee
Butter Milk
Skimmed Milk
Powder
Butter Milk
Self
Developed
Products
Paneer
Flavors Milk
Sweets
Shrikhand
Sumul Sugar
Sumul Tea
21
Milk Products

22.
2.2 Growth Path of Sumul Products
Products Year
Milk distribution in bottle 3-5-1968
Establishing member of GCMMF 9-7-1973
Milk distribution in polybag 7-12-1978
Butter milk distribution in polybag 1-6-1987
Whole milk (SUMUL YA) in bulk 1987-88
Whole milk (SUMUL YA) in 500 ml 1991
Homogenized toned milk in 500 ml 1994
Homogenized toned milk in 200 ml 1995
Flavor milk 1993
Paneer 1994
Sweets 1994
Shrikhand 1995
Masala Chaas 15-8-1999
Flavored milk in 200 ml pouch 15-8-1999
Pasteurized milk in 5 liter pack 1998
Masala chass, methi chass 2000
Pizza & Ice-cream 2001
Rasgulla, Gulab Jamun,Sugar & Cow milk 2002
Tea 2003
Glabletop Packing for Milk (Plane & Flavoured) 2004
Buttermilk in ESL Packing 2005
Cold Coco 2005
22

23.
2.3 An Overview of SUMUL Product
Milk Products :
Milk is the mail product that is produced by the sumul. Milk acts as a raw material for
the other products of sumul like curd, butter milk, paneer, etc. Sumul processes variety of milks
such as whole milk, toned milk, cow milk, etc because the demands of milk are different from
customer to customer sumul tries to fulfill all the demands, e.g. people who want ‘Malai’
purchases whole milk standardize milk is used for tea.
A white or yellowish fluid secreted by the mammary gland of animals. It consists of
emulsion of fat in water with casein and other proteins, milk sugar and inorganic salts. The
solids other that fat include protein, carbohydrates, water-soluble, vitamins and minerals.
According to the prevention of food adulteration rules 1995,the percentage of milk, fat and
SNF in different classes and designation of milk specified respectively are as follow: Buffalo
milk (5%-6% and 9%), cow milk (3%-4% and 8.5%) recombined milk (3% and 8.5%) double
toned milk (1.5%-9%) and skimmed milk (not more than 0.5% and 8.7%) the fat percentage for
the milk of Cow and Buffalo varies from state to state and is detailed is DFA rules.
Types Of Milk:
MILK
VITAMIN
A
D
E
K
SNFFAT
PROTEIN
MINERALS
IRON
CALSIUM
LECTORS
23

24.
Name FAT (%) SNF (%)
Whole Milk 6 9
Toned Milk 3 9
Cow Milk 3.5 8.8
Skim Milk 0.07 9.3
ESL Milk ----- -----
Standardize Milk 4.5 9
Buffalo Milk 5.5 9
PSM 4.7 8.8
Sumulya 6.2 9.1
24

25.
Pasteurized standardized milk:
Name of Raw Material or Ingredient:
1. Raw Milk
2. Skim milk Powder
3. Pasteurize white Butter
4. Pasteurize Skim Milk
5. Pasteurize Cream
6. LDPE Film
7. Water
Pure Ghee:
A Product obtained from milk, cream or butter from various animal species by means of
processes, which result in the total removal of moisture and SNF contents, with an developed
physical structure. Clarified butter fat with a strong flavor is prepared by heating makkhan.
Name of Raw Material or Ingredient:
1. Pasteurize White Butter/White Butter
2. Sour Butter
3. Hd:Ld:Hd
4. 3 layer Polyethylene Bag
5. Tin (Lacquered) 15kg size
6. 1kg/2kg Size With Corrugated Box
25

26.
Panner :
Milk is heating to boiling temperature and limejuice, citric acid, or sour whey. Paneer contain
70% moisture. The whole milk paneer should contain 50%, milk fat on dry matter basic. In
skimmed milk paneer the fat on dry matter basic should not exceed 13%.
Name of Raw Material or Ingredient :
1. Pasteurized Standardized Mik
2. Citric Acid
3. Common Salt
4. Moralized Polyester Bag
5. Pasteurized Chilled Water
Flavored Milk :
Milk standardized to a certain fat percentage to which some flavor such as chocolate
and fruit syrup is added.
Name of Raw Material or Ingredient :
1. Homogenized Pasteurize Toned Milk
2. Sugar
3. Flavor
4. Color
5. Glass Bottle
6. Crown Cork
26

27.
Sumul Jome :
Name of Raw Material or Ingredient :
1 Homogenized Pasteurize Toned Milk
2 Sugar
3 Flavor
4 Color
Buttermilk :
By product obtained after the removal of butter or cream from crud by churning or
otherwise also known as chaas.
Name of Raw Material or Ingredient:
1. Pasteurize Skim Milk
2. Skim Milk Powder
3. Batch Starter
4. Water
27

28.
White Buttert :
Name of Raw Material or Ingredient:
1. Pasteurize Cream
2. Corrugated Box
3. HM-HDPE Sheet
4. Pasteurized Chilled Water
SWEETS
Shrikhand
A milk based sweets male from concentrated dahi with a sweet and sour taste. It is a
semi-soft whole milk product prepared from dahi and resembles sweetened quark. Dahi is
drained of its whey by hanging it in a cloth from 4 to 6 hours to producing a solid mass called
chakka or maska. The resultant maska is mixed with the required sugar, condiments and flavor.
Name of Raw Material or Ingredient:
1. Pasteurize Whole Milk
2. Pasteurize Skim Milk
3. Surar
4. Saffrom (kesar)
5. Nuts (Kaju, Badam, Pista etc)
6. Poly-Propylene Cups
7. Sealing Foil
8. Corrugated Box
28

29.
Kesar Dry Fruit Shrikhand
Name of Raw Material or Ingredient:
1. Chakka
2. Sugar
3. Kesar
4. Almond
5. Cashew nuts
6. Kismis
Elaichi Shrikhand
Name of Raw Material or Ingredient:
1. Chakka
2. Sugar
3. Elaichi (Cardamom)
29

30.
Peda :
Name of Raw Material or Ingredient:
1. Pasteurize Milk (Sumulya)
2. Sugar
3. Saffrom (kesar) Powder
4. Cardamom (Elaichi)
5. Nuts (Kaju, Badam, Pista etc)
6. Paper Box
7. Oxygen Scavenger Poly Bag
8.
Elaichi Peda :
Name of Raw Material or Ingredient:
1. Milk
2. Cardamom
3. Sugar
30

31.
Kesar Peda :
Name of Raw Material or Ingredient:
1. Milk
2. Sugar
3. Kesar
MalaiPuri :
Name of Raw Material or Ingredient:
1. Milk
2. Sugar
3. cardamom
4. Ghee
5. Pista
31

32.
Other Sweets
Rasgulla :
Gulabjabun:
Sumul Milk Powder :
Name of Raw Material or Ingredient:
1. Pasteurized Skimmed Milk
2. LOPE film
3. Kraft Paper Bag
Other Products :
Khawa :
A product obtains from Cow, Buffalo or mixed milk by heat desiccation of milk to
65-50% solid in an open pan. It is also called as khawa or mava.
32

33.
Tea :
Sugar:
33

34.
2.4 Major Customers :
The major customer of the company is the local market and other dealers in different
parts of Gujarat state. And it has a major dealer in most of the cities.
Distributors
SR. Code Distributors Location Telephone
1 4001 Chandrakantbhai Gheewala Varachha 9824187724
2 4005 Kamleshbhai Patel Ukai 02624-233079
3 4011 Gopi Agency Sachin 2890493/ 2890023
4 4012 Bhagvati Maisuriya Kim 02621-230979
5 4014 Nitaben shah Kadod 246998
6 4015 Patel Bhailal Rander 2484350
7 4016 Gurukrupa Traders Olpad 02621-221225
8 4020 Aashirwad Agency Bardoli 02622-226475
9 4021 Patel Ambalal Navsari 2482085
10 4022 Kikiben Patel Dumas ---
11 4024 Hashmukhbhai Mayavanshi Bedkuvadur 02626-231251
12 4028 Ambika Bakery Udhana 2678518
13 4031 Puja Agency Salabatpura 2616715
14 4047 Jagdamba Distributors Chalthan 02622-271446
15 4125 Sunandaben Patil Navapur ---
16 4126 Super Sles Corporation --- ---
17 4114 Yogeshbhai Desai Katargam 9885390086
18 4128 Ishwarbhai Rambhai Bari --- ----
2.5 Sales Volume (2005) :
Name Sales (liters)
Whole Milk 1,50,000
Sumulya 1,00,000
Delite 1,30,000
Standardize Milk 2,50,000
Cow milk 20,000
34

35.
The
Organization Structure
Of
SUMUL DAIRY
CHAPTER CONTENTS
3.1 Structure of Organization……….
3.2 Board of Directors………
3.3 List of developments………
35

36.
3.1 Structure :
Chairman
Bord of Director
General Manager
Assistant Manager
Senior Executive Officer
Junior Executive Officer
Senior Assistant
Junior Assistant
Workman Workman Workman
36

37.
3.2 Bord of Directors :
No Name Details
1 Shri Manubhai Amthabhai Chairman
Representative, Nihali Dudh Utpadak S.M.Ltd, At.:
Nihali, Po.:Dholikui, tal.:Mahuva.394250
2 Shri Sadambhai
Reghunathbhai Patel
Vice Chairman
Representative, Velda Vibhag Dudh Utpadak S.M. Ltd.
At velda Tal, Nizar 394370
3 Shri Chunulal Durlabhbhai
Patel
Representative, lotarwa Dudh Utpadak S.M. JIN Ltd.
At. & Po.: Lotarwa, Tal.: Vyara. 394650
4 Shri Arvindbhai Singabhai
Gamit
Representative, Pipalkuwa Dudh Utpadak S.M. Ltd.
Pipalkuwa, Po,: Piplkuwa, tal.: Songadh. 394660
5 Shri Jayeshbhai Natvarbhai
Patel
Representative, Delad Dudh Utpadak S.M. Ltd. At.
Delad Po.: Saya, Tal.: Olpad.394540
6 Shri Jitendra Dhirajlal Desai Representative, Uchchal Dudh Utpadak S.M. Ltd. At &
Po.: Uchchal, Tal.: Uchchal. 394375
7 Shri Ratilal Somabhai
Master
Representative, Surat Dudh Utpadak S.M. Ltd. 40-A,
Patelnagar A.K.Rd, Surat Tal.: Choryasi.395008
8 Shri Manojbhai Naranbahi
Patel
Representative, Shekhpur Dudh Utpadak S.M. Ltd. At
Shekhpur Po.: Sayan, Tal.: Kamrej. 394180
9 Shri Shivabhai Babubhai
Patel
Representative, Naugama Dudh Utpadak S.M. Ltd. At
Naugama (Nani) Po.: Simodra, Tal.:Mangrol.394410
10 Shri Ramanbhai
Ukadiyabhai Gamit
Representative, Zankhala Dudh Utpadak S.M. Ltd. At
& Po. Zankhala Tal.: Mandvi.394160
11 Shri Bhupendrabhai Ratilal
Desai
Representative, Valod Dudh Utpadak S.M. Ltd. At &
Po.: Tal.: Valod, 394640
12 Shri Shantilal Kalyanjibhai
Patel
Representative, Bagumra Dudh Utpadak S.M. Ltd. At
& Po. Bagumra. Tal. Palsana.394315
13 Shri Arvindbhai
Bhagvanjibhai patel
Representative, Rampura Dudh & shakbhaji U.S.M.
Ltd. AtRampura. Po. Varad. Tal: Bardoli. 394602
14 Shri Parsottambhai
Mundiyabhai Padvi
Representative, Umarda Dudh Utpadak S.M. Ltd. C/o.
At & Po. Umarda, tal. Umarpada
15 The District Registrar, Representative, the Registrar, Co-op. Societies, Gujarat
State.
16 Shri P. Chellapa Representative, N.D.D.B., Anand
17 Shri K.M. Zala / S.t. Desai Representative, GCMMF Ltd, Anand. Dr.
18 Shri Pramthesh Rameshbhai
Patel
Manging Director, Ex. Officio Member Secretary
Sumul Dairy, Surat
37

38.
3.3List of Departments :
 Marketing Department
 Production Department
 HR Department
 Assembling Department
 Quality Department
 Store & Purchase Department
 Finance Department
38

39.
The
“Human Resource Department”
Of
Sumul
CHAPTER CONTENTS
4.1 Hierarchy of HR department
4.2 HR Objective
4.3 Role of HR in sumul
4.4 Human Resource Activities
4.5 Employee records
4.6 Recruitment & Selection process
4.7 Training & Development system
4.8 Performance appraisal system
4.9 Promotion & Transfer policy
4.10 Wage & Salary structure
39

40.
4.1 Hierarchy of Organization:
Bord of Director
Chairman
Senior Executive Officer
Managing Director
Junior Executive Officer
Senior Assistant
Junior Assistant
Technician
Workman
40

41.
Personnel department is the key department of the any business. Personnel department
is the main part behind the company’s success or failure. Personnel management is that part of
management, which concerned with people at work and with their relationship within an
enterprise. Its aim is, to bring and develop into an effective organization. The men and women
who make up an enterprise and having regard for the well being of individual & of working
groups to working groups to enable them to make their best contribution to its success.
The meaning of the personnel dept., labor management or staff management means
quite simply the task of dealing with human relationship within an organization.
Personnel management is a continuous process. It cannot stop. Personnel management
is a never-ending process. It helps in achieving objectives of company. This is done by proper
perform of personnel function like recruitment, selection, training & development, labor
activity, motivation, welfare etc. it also helps to keep a smooth relationship between employers
& employees.
Sumul believes that the most significant resource are its Human Resource and Sumul’s
Success in the long run depends very much on the quality of its human resources. Human
resource comprise the aggregate of employee attributes including knowledge, skill, experience
and health, which are presently available to the organization for the achievement of its goal,
objectives and service to the society.
41

42.
4.2 HR Objectives :
 To develop and sustain core values.
 To develop business leaders fro tomorrow.
 To provide job contentment through empowerment, accountability and
responsibility.
 To build and upgrade competencies through virtual learning, opportunities for
growth and providing challenge in the job.
 To foster a climate of creativity, innovation and enthusiasm.
 To enhance the quality of life of employees and their family.
4.3 Role of HR in SUMUL :
 Alignment of HR vision with Corporate Vision
 Shift from support group to strategic in business operations
 HR as a change agent.
 Enhance productivity and performance by developing employee competency
and potential.
 Developing professional attitude and approach
 Developing ‘Global Managers’ for tomorrow to ensure the role of global
players.
42

43.
4.4 Human Resources Activities :
The main activities of this department are selection, training, recruitment, and welfare
actives.
To diffuse the effect of Global Competition, Sumul has adopted the latest concepts of
management practices and provided appropriate training with the help of leading institute from
time to time for up-gradation & development of its Human Resource. Some of the efforts of
Sumul to achieve this are :
Other Activities :
1. Washing facilities:
The facility of washing clothes is provided to all the employees
.
2. Store & Drying facility:
The full time workers are given personnel lockers to store their things
and also facility for drying clothes.
3. Canteen facility:
it is providing employee to take Break-fast, Lunch and Dinner at
economic price.
4. Rest room:
It is also provided to take rest during the Lunch hours.
5. First aid facility:
It is given for quick remedy of employees. When any accident occurs
during the working hours of the organization.
6. Vehicle parking space:
It is provide for employee, worker and visitors separately.
7. Accommodation:
Organization is providing township & accommodation facilities to
employees.
Employee Personality Development (Attitude, skill & Knowledge) 1995
Self Development (Self management Leadership, Meditation) 1995
Total Quality Management, QC, SGA, Kaizen, SQC 1996
Total Productive Maintenance 1999
Meditation Hall 2000
43

44.
8. Vehicle loan:
It is given to Employee / Executive only.
9. Department stores:
“KAMDHENU” department store is in the staff ready credit society /
Staff Quarters to purchase all necessary items at economic rate for employee.
10. Uniforms, Shoes and Raincoats:
Uniforms, Shoes and Raincoats are provided to all employees and
workers.
11. House rent recovery:
House rent recovery for those employees who are live in rental house.
44

45.
4.5 Employee Records :
SUMUL keeps the perfect & day-to-day employee record of the entire employee in the
company. Here all the employees are given certain codes & their data are entered in the
computer according to the code. All the employees record is written down accurately whether
the employees are new or old. From the employees records only the company can know that to
whom the company should given the promotion & to whom the company should give demotion
give demotion. From all the working period of the employee, the company calculates the
provident fund & the allowances of the entire employee. From the employee record, the
company can know the employee’s honesty performance, efficiency, loyalty etc.
Generally the company also needs record information pertaining employees that are as
follows.
1 Employee name.
2 Employee present residual address with telephone no.
3 Employee Permanent address with telephone no.
4 Employee birth date
5 Employee’s education qualification
6 Year and date of joined services
7 Department in which currently works.
8 To whom to contact in your absence at your residence & the nearest phone no.
9 Age
10 Male / female
45

46.
4.6 Recruitment & Selection Process
Recruitment:
Sumul as such dose not has a well-defined recruitment policy. Recruitment is basically
done by HRD department in consultation with the concerned department for which new
employee is required. it is not a regular event as recruitment is done only when there is any
vacancy or some requirement comes up in the organization. All the new employees must meet
the minimum experience and qualification criteria as set by personnel department.
Recruitment Process:
 HR Department receives requisitions.
 Locating and developing the sources of required number and type of
employees.
 Identifying the prospective employee.
 Communicating the information.
Generally, two types of SOURCES are used in the Organization:
1. Internal Recruitment:
It is generally done through promotion and training programs.
2. External Recruitment:
 Direct Interview:
By giving advertisements in the newspapers
 Employment exchange:
These agencies are providing a wide range of services,
counseling assistance in getting in getting jobs, information about the
labour market, labour and wage rates.
 Campus interview.
 Advertisement.
46

47.
Selection Process:
The Selection Process is concerned with determining whether an applicant meets with
all the qualification need to perform a particular job. It means right person a right place. It is
very important because of a wrong person is selected it will cost to the company. Need of
selection would be arise when vacancies are made in organization. Procedure for selection is
differing from organization to organization and from job to job.
For Executives:
 Written Test
- Aptitude test
- Subject test
 Group Discussion
 Interview
 Final selection
For Non-Executives:
 Written Test
 Final interview
 Final selection
Induction:
When a new employee joins an organization, he is completely a stranger to the people,
Work place and the work environment. Therefore, he is likely to feel insecure, shy and
nervous. For this Sumul provides 7 days for induction.
47

48.
4.7 Training and Development System
:
“ To bridge the gap between job requirements and present competence of an employee
”
Need for Training:
1. Job Requirements.
2. Technological Changes.
3. Organizational Viability.
4. Internal Mobility
Training is given in 3 Categories as :
1. Management Training.
2. Office Training
3. Senior Executive Training
The management training is given for 6 months. Officers and senior Executives
attend the management development programmed organized by the institute. Training
is not uncommon in Sumul. It has an elaborate training program to make employees
acquire new skills and knowledge. Both internal and external training is carried out as
and when required. Following are the data of internal and external training programmed
conducted by Sumul in the last five years.
Number of Training Programs
Programs 2001-02 2000-01 1999-00 1998-99 1997-98
No. of in-house Programs 144 53 20 - -
No. of Participants 1762 628 415 - -
No. of External Programs 9 9 14 16 22
No. of Participants 55 31 43 55 57
Total Programs 153 62 34 16 22
Total Participants 1817 859 458 55 57
In addition to this, Sumul also has the policy to sponsor employees for higher education to
various institutes. The following table shows the number of employees sponsored by Sumul.
No. of Employees sponsored for higher studies
Particulars 2001-02 2000-01 1999-00 1998-99 19997-98
Employees
Sponsored for
2 2 1 - -
Advance Study continue
48

49.
4.8 Performance appraisal System :
“Performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in mattes pertaining to his present job and his potential for a better job”.
After recruitment organization gives specific project to the employee to train him.
After completion of this project, it is checked by the authorized person of the department if the
employee do not perform well then they are terminated from the organization. Performance
Appraisal System is still in rudimentary stage in Sumul. Through Performance the top
management does appraisal or reporting head, it is short on comprehensiveness and touches
only few aspects. However the silver lining is that in order to make system transparent and
open, evaluation is cross-checked with the employee by HRD people and in case of some
differences try to solve out the problem
4.9 Promotions and Transfer Policy
Promotion Policy :
The Management Trainees are given 6 month training and later on if they perform well
are promoted as provisionary and after one year they are confirmed. Moreover promotion is
given on the basis of education obtain by different personnel.
Transfer policy:
There is not any policy for transfer, but managing director of the organization generally
takes the transfer decisions.
49

50.
4.10 Wage & Salary Structure :
 Dearness Allowance
 Additional Dearness Allowance (ADA)
 House rent Allowance (HRA)
Some fixed amount of house rent allowance is provided for those who live in rental house.
Sumul has a fixed increment system for each level of authority in the organization. Only one
increment is given a year. However for calculating increment for an employee, the period of
time the day of his joining. Rather month of January and July are considered as base month for
the same. For instance, an employee joining the organization in second week of January in
1999 would be having his next increment due in 2000 July not in January. There is also a
compulsory increment every 14 and 23 year in which, the employee becomes eligible for
immediate next salary scale. Plus two increments without any change in his/her designation.
However, during last agreement, upgraded employee have also been given designation as per
new salary scale. Recently, Sumul has revised its pay structure to attract more young talents.
Leave Travel Allowance (LTA)
Every year allowance is given to employees for traveling any place. This amount is also
fixed. Super Annuitant Scheme (SAS) it provided after every 3 years
(BASIC+DA+ADA).
Washing Allowances (WA)
Rs. 20/- is provided every month as washing allowances to worker category.
City & Travel Allowance (CTA)
Those who live in city are given these allowances more than those are in the
village.
Shift Allowance (SA)
Shift allowance is provided in following way:
PRESENCE IN ONE-MONTH ALLOWANCE (RS.)
25 & More 65
24 60
50

51.
23 45
22 30
21 15
20 & Below 00
Visiting Allowance (VA)
This allowance is given to the entire field officers and veterinary officer.
Bicycle Allowance (BA)
It is give to all permanent employee of worker category.
Scooter Allowance (SA)
This allowance is given to all the officers and marketing executives.
Driving Allowance (DA)
It is giving to the drivers of tempos and trucks of SUMUL.
Other Components:
a) Bonus
(8.33% of BASIC +DA+ADA)
b) Funeral Fund
Rs.3000 to the ward and family of the dad.
Every month Rs1/- of all higher executives salary is maintained
for this fund
51

52.
The
“Production Department”
of
SUMUL
CHAPTER CONTENTS
5.1 Introduction
5.2 Organization Structure
5.3 Production Plan
5.4 Activities
5.5 Production Process
5.6 Micro Motion Studies
5.7 Support services
5.8 Material handling equipments
52

53.
5.1Introduction :
Production is defined as arranging the manufacturing resources for the purpose of
conversion of raw materials to saleable produces of optimum quality and minimum cost. Thus
production is the systematic step-by-step conversion of raw materials through creation of from
utility in goods. Manufacturing of goods is a highly complex process. Goods in the stock which
are ready to sell do not just happen they are the end results of careful planning and control. The
company makes the best use of man, materials and machinery for those sole purposes of
economical delivery of quality goods to customers.
Production management is concerned with decision-making process related to the
manufacturing process. It makes the best utilization of raw materials available and does
necessary processing on it and converts it into utility. Production management is concerned
with planning, organizing, controlling and co-ordination the manufacturing process, so that
resulting goods or services is reduced according to the expectation, in the amount and by the
cost.
Thus, in a broader sense production management is concerned with coordination of
men, materials, machines and money manufacturing goods. In a narrow sense it means
planning, scheduling and controlling flow of materials to a plant.
Sumul has produced 15,04,61,760 kg milk during the year out of which
10’09’44’886kg i.e.62.52% consulted Buffalo milk and 6,65,91,094 kg i.e. 37.50% consulted
cow milk. Achievement in milk procurement is due to adoption of animal Husbandry as an
effective tool for economic growth by milk producer members and their devotion to wards milk
co-operative movement and also adoption of business approach by sumul. the figures of overall
fat% and SNF% in both buffalo and cow milk procured Sumul during the year, match with the
normal milk standards (i.e. buffalo milk 6.8% fat, 9.00%snf, cow milk 4.3%fat, 8.5%snf)
which aids the union in marketing good quality milk and milk products.
Sumul has paid on an average Rs. 215/- per kg its milk producers / farmers. It has
attained self-sufficiency in its milk requirement. Now. Sumul is in a position to surplus milk to
mother dairy of Gujarat co-operative milk marketing federation limited, Gandhinagar and other
district co-operative milk unions, in Gujarat.
53

54.
5.2Production Management
Structure :
Managing Director
In charge Strategy
Business Unit Center
Production manager (1) Production manager (2)
Packing of Shrikhand
Cream Processing
Packing of Pasteurized
Milk
Packing of Manufacturing of
Flavored Milk
Milk
Packing of Manufacturing of
Ghee
Packing of Manufacturing of
Dahi
Cream Processing
Tanker Handling
Raw Milk
Transportation
Pasteurized Milk
Transportation
Sweets
Milk Processing
Manufacturing Skim
milk Powder
54

55.
5.3Production Plan :
1. Sales / marketing department is sending daily demand to the production department
as per demand market department.
2. FROM Gujarat co-operation milk marketing federation every week sending
demands of Amul products.
3. According to satisfy both production department prepare their production plane
schedule. Production plan schedule generates raw material requirements packaging
material & it contain utilize requirements
5.4 Activities of Production
Departments :
1. Production of planning
2. Material requirement planning
3. Store finished goods and raw material
4. Quality control
5. Packaging
6. Painting of pack product
7. Transport to Marketplace
8. Washing and cleaning of equipments, regular maintenance of machine and other
equipments.
55

56.
5.5 Production Process :
Milk cycle:
1. A machine milking the cow
2. Milk producer’s co-operative Ltd collects the milk from the entire village.
3. The collected milk is tested against the set standard. That insures quality of
milk being received from the root level.
4. The received milk is sold locally as well as transported to the dairy for the
further processing
5. The milk is tested in dairy lab. No compromises with the quality of milk
being received.
6. The qualified milk is received at raw milk receiving Dock at dairy.
7. Cleanliness is always the top priority at any stage of milk cycle cans
cleaning process.
8. Milk is pasteurized, clarified and standardized using lasted technological
machine & equipments.
9. Milk again tested before being packed.
10. Pouch filling for all the end users.
11. Packed milk stored in well-maintained cold storage.
12. Milk dispatched for the sale in the marker.
56

57.
5.6Micro Motion Study :
During the visit to the production plant we have done micro motion study of a
worker whose work was to take the milk pouched from the machine and the keep them on
crate, which uses to come serially on the belt conveyors. The position of the person was
such that it to very less time.
The pouches of 500 ml were filled in Polly bags, sealed and ready pouches were
thrown though the pouch-filling machine.
1. First of all we caught the two pouches in one hand and again two pouches with
other hand (5 sec)
2. Then he kept all the four pouches together in the crate coming over the Belt
conveyor. (4 sec)
3. He again tuned and caught all the four pouches with two hands. (5 sec)
4. And again kept all the four pouches together in the crate coming over the Belt
conveyor. (4 sec)
The entire process was completed in 18 sec.
57

58.
5.7Support Services :
 Maintenance
 Packing
Maintenance
Maintenance is necessary for both raw materials as well as finished goods. The
company has to put stress on the matter regarding the spoiling of goods due to weather or other
aspects. At SUMUL, there is a strong maintenance procedure on raw materials & final
products, because such milk products should be maintain in such way they maintains their
quality for the long period of time.
Packing
Packing is one of the most important factors that management must have to consider in
mind. When the raw materials are converted in the finished goods all the products are then send
to the packing room. Here different machines are available for different types of packing. The
firm is now going for a new type of packing called Gable top packing. The main advantage of
such type of packing is in this packing milk remains fresh for about 10 days. Soon, Sumul milk
will be available in such type of package.
58

59.
5.8Material Handling Equipments
Used :
Equipment Quality
Milk Tankers :
Sumul
On contract
13
11
Tempos (on contract) 70
Belt Conover 8
Crates 40,000
Cans :
40 Liter.
20 Liter.
250
25
Crates Trolleys 50
Cans Trolleys 10
Plastic Tube 5
Glass Betties (200 ml) 35,000
59

60.
An
Introduction
To
“Marketing Department”
CHAPTER CONTENTS
6.1 History……….
6.2 Objective………
6.3 Marketing system…
6.4 Pricing policy………..
6.5 Channel of distributors…
6.6 List of competitors………..
6.7 Promotion policy……..
6.8 System of approaching to the customers……….
6.9 Customer satisfaction…
6.10records of customer base…..
60

61.
6.1Hierarchy of Marketing
Department
Senior Executive Officer
Junior Executive
Senior Executive
Senior Assistant
Junior Assistant
Workmen
61

62.
Human needs, human necessities have no end. The aim of business activity is to acquire
wealth, then to convey it into desired forms and to make the final product available for
exchange for the satisfaction of human needs. These all activities fall under industry
commerce and trade. These three branches have one common function i.e. exchange
function. This important and powerful function is known marketing.
‘Marketing is a Social management Process by which individuals & groups obtain
what they need & want through creating, offering & exchanging products of value with
others.’
6.2 Objectives of Department :
 Increase the yearly sale of sumul products by 15 present in compression of last year’s
same month.
 The monitor the internal and external customers satisfaction level.
 To monitor the product and the storage condition including GMP and distributors parlor
retailers levels.
 Training and awareness to customer regarding ISO-9000, ISO-14000, HACCP, GMP
and Sumul products about 1000 customer per year.
 Appoint 5 new agents per month to make milk easily available in market.
 To take 25 milk awareness programs at various schools in Surat.
62

63.
6.3Sumul’s Milk Marketing System
Sumul’s milk marketing in Surat city is monitored, eliminating costly sales-booths and
though regular and assured twice a day supply of milk to 1662 concessionaires (Agent) and 198
institutional buyers, through 85 contractors’ route vehicles. There is guaranteed cash inflow of
the sales proceeds on day-to-day basis and safe return of crates etc. to the Dairy. The
standardized / pasteurizes milk is dispatched to the city twice a day to the network of
concessionaires (Selling it on behalf of Sumul on a commission basis). The institutional buyers
are supplied milk in sealed cans. Contractor’s trucks carry milk from the Dairy Plant to the
places of these concessionaires who caters to the domestic demand of milk in their respective
earmarked areas.
Both economic and operational advantages of keeping the sales-counters at the
residential places of the Agents are distinct as:
 No creation or maintenance of these sales-counters is involved.
 All the security of milk, material and money.
 Operational convenience to deliver milk and off tack of crates etc. from these
permanent places at any time, including odd hours.
 Utilization of Agent’s family, labour and residential place and hence very
economic operation for them and the Dairy.
 Familiarity of the Agents with locality and vice-versa and hence smooth
dealing under mutual confidence.
The institutional buyers include hotels, restaurants, canteens, hotels, charitable
institutions, milk vendor’s etc. who enter into contracts for purchase of milk for the entire year
and receive milk as per the contract, twice-a-day, in sealed cans, through the contractor’s milk
routs and make the full payment to the Dairy Representative just at the time of delivery of milk
to them.
63

64.
The contractor are responsible for any shortage, breakage OR pilferage of milk and
material occurring during transportation. While the Agents hold the responsibility of any such
incidence occurring at their level. There is regular, assured and smooth in-flow of cash from
milk sales from the Agents to the Dairy’s Cash Collection Centers on day-to-day basis without
involving a bank for collection of sales-proceeds and maintaining individual accounts. The
Agents sale milk delivered to these Agents during the day and they develop the sale-proceeds
daily at the nearest Cash Collection Centers of the Dairy. The Dairy runs these Centers for all
365 days in a year for regular day-to-day receipt of cash amount. For any default on the part of
the Agent, such as non-payment or short-payment of cash, the Dairy takes corrective action
almost instantaneously.
Sumul also encourage a small Savings Scheme for the Agents by deducting a particular
amount from the commission every month and transferring the same into their deposit amount,
thereby allowing the deposit to build-up every month, which gets additional security to the
Dairy as well as to Agents. Any amount in excess of three times, the realization from the daily
sales can be withdrawn by the Agent any time during the year. Currently the commission of 40
paise per liter is paid to the Agent.
64

65.
6.4 Pricing Policy :
Generally the pricing policy is not disclosed to anyone and so I was also not disclosed
the pricing policy. General information regarding to setting of price is it has fixed structure
followed by GCMMF at Sumul farmers are paid on the basis of kilo fat in their milk. They are
paid Rs.212 per KG of kilo fat. Taking this as base the price of the product is being set. Hence
the price of other product or ingredients used. In case of keser peda, kesar is used for malaipuri
certain dry fruits are used to taken into consideration and accordingly their prices the price is
set. Here the electricity expenses are also added to it. No additional profit is being charged.
Here while setting the price the care is taken that the price of the product of Sumul is kept low
equal to the precluding price of the similar product in the market.
Price list of Sumul Products :
Price list of the various products produced by the Sumul with various quantities are as
under.
Commodity Quality Price(Rs.)
Ghee 15 kg 2300
5 liter 720
2 liter 275
1 liter 150
1 liter pouch 145
500 ml pouch 74
200 ml pouch 31
White Butter 15 kg 1695
500 gm 60
Jome 200 ml bottle 8
200 ml pouch 5
Paneer 1 kg 105
200 gr 22
Ilichy Peda 500 gr 59
250 gr 30
Kesar Peda 500 gr 79
250 gr 40
Malai Puri Peda 250 gr 36
Primium Tea 500 gr 62
250 gr 33
100 gr 14
Silbver Tea 500 gr 71
250 gr 39
100 gr 16
Ilichy Shrikhand 500 gr 40
Kesar Shrikhand 500 gr 45
100 gr 10
65

66.
6.5 Channel of Distribution :
1. Direct
2. Indirect
1. Direct Distribution Channel :
Sumul is handling 1900 outlets for selling their buttermilk, tea and sugar.
2. Indirect Distribution Channels :
Sumul is distribution various products that are milk & other than milk there are
3 major distributors in Surat city & 19 distributors in rural areas. All dairy co-operative
society acts as a distributor for all Sumul products. In Surat city Sumul is creates 3400
outlets; Sumul has their own 44 milk parlors which are in direct contact with the
customer.
Information technology growing very fast and Sumul always ahead in
technology. Customer should be got advantage of these technologies for this reason
Sumul Started online shopping facility to Direct Customer as well as Distributor and
parlor also net facilities like.
Direct Customer www.sumuldairy.com
Distributor and parlor www.b2bsumul.com
Agent CustomerDairy
66

67.
Distributors
SR # CODE # DISTRIBUTORS LOCATION TELEPHONE #
1 4001 Chandrakantbhai Gheewala Varachha 9824187724
2 4005 Kamleshbhai Patel Ukai 02624-233079 / 233501
3 4011 Gopi Agency Sachin 2890493 / 2890023
4 4012 Bhagvati Maisuriya Kim 02621-230979
5 4014 Nitaben Shah Kadod 246998
6 4015 Patel Bhailal Rander 2484350
7 4016 Gurukrupa Traders Olpad 02621-221225
8 4020 Aashirwad Agency Bardoli 02622-226475
9 4021 Patel Ambalal Navsari 2482085
10 4022 Kikiben Patel Dumas ---
11 4024 Hashmukhbhai Mayavanshi Bedkuvadur 02626-231251
12 4028 Ambika Bakery Udhana 2678518
13 4031 Puja Agency Salabatpura 2616715
14 4047 Jagdamba Disributors Chalthan 02622-271446
15 4125 Sunandaben Patil Navapur ---
16 4126 Super Sales Corporation --- ---
17 4114 Yogeshbhai Desai Katargam 9825390086
18 4128 Ishwarbhai Rambhai Bari --- ---
67

68.
Parlors :
68

69.
SR
#
CODE # PARLOURS LOCATION TELEPHONE #
1 4000 Sumul Staff Society Sumul Main gate Ext. # 252 / 274
2 4002 Khedut Sahkari Jin 2 Vyara 02626-220045
3 4003 KRIBHCO Staff Society KRIBHCO 8422575
4 4004 Bardoli Sugar Staff Society Bardoli 02622-220418
5 4006 Swaminarayan Kariyana Stores Kathor 02621-256364
6 4008 Sagar Dairy & Provision Stores Vyara 02626-222401
7 4009 Kamrej Kela Mandli Kamrej 02621-252067
8 4019 Rajendra C. Patel Ambikaniketan 2258839
9 4023 Madhi Sugar Staff Society Madhi 242141 / 241048
10 4027 SUMUL Parlor SUMUL Main Gate 1 Ext # 277
11 4029 Madhuben Vyas Anand Mahel 2747650 / 2736293
12 4030 Vasantbhai Patel Road Varachha 2556430
13 4121 Shobhaben Thakkar Gopipurat ---
14 4037 Jivanlal Barwalia A. K. Road 28568919 / 9824136802
15 4039 Prakashbhai Patel Kapodra 2566162
16 4041 Janak Dalal Navapur ---
17 4043 Sanjay Gaurishankar Shah Station Road ---
18 4044 Bharatbhai Patel Amroli 2495867
19 4046 Palsana Grocery Palsana 02622-263218
20 4048 Jitesh Shah Kathor 9824189931
21 4050 Sayan Sugar Staff Society Sayan
22 4051 Khadi Gram Udhyog Olpad 221002
23 4053 Sarvajanik Kanya Vidhyalaya Bardoli ---
24 4054 Kadwa Patidar Samaj Navi Pardi ---
25 4055 Dinesh Rathod Olpad 02674-286370
26 4059 Bavchandbhai Patel Ayurvedic College 7548372
27 4061 Sevni Sahkari Mill Kamrej 02621-264509
28 4099 Vimal Patel Kadodara
29 4113 Smt. Induben Variya Bhagal ---
30 4115 Kalpanaben Patel Bardoli 9825508686
31 4117 Chauhan Sailesh Fatehsingh Sarbhog ---
32 4115 Bardoli Parlur Bardoli 9825267781
33 4124 Citulight Parlur Citulight 9374702220
34 4130 Rudhnathpura Parlur --- ---
35 4134 Katargam Parlur Katargam 2530915
37 4137 Sachin Parlur Sachin 2391102
38 4142 Dhamore Parlur Dhamore ---
39 4145 Athwa Market Athwa 9879514940
40 4154 sardar Market --- 2340160
41 4157 Lalita Chokdi Parlur Lalita Chokdi ---
42 4158 Maganbhai Olpad 9825884352
43 4162 L.P.Savani Parlur --- 9824114642
44 4166 Un Parlur --- ---
45 4167 Kosamba Parlur Kosamba 9879125755
46 4172 Sumul Dairy Main Parlur --- Ext-277
69

70.
Area covers :
The distributors nad parlors cover whole Surat District including Surat City, Bardoli,
Vyara, Kodod, Ukai, Chatthan, Kamrej, Kim, Kosamba, Olpad, Kathor, and Sayan. This whole
district is coverd by almost 3000 retail outlets; They constanltly remain in contact with the
customers.
Market Share :
In dairy industry Sumul Dairy is wide term. We are the market leaders in almost each
dairy product in Surat District.
Products Share
Ghee 70%
Paneer 50%
Shrikhand 15%
70

71.
6.6 List of Competitors :
The raw milk section comprises local co-operative such as Choryasi, Payal etc. &
Vendors. Following some of the dairy all from the district i.e. from North Gujarat &
Maharashtra:
1. Unity dairy, Uttarsanda
2. Jeevan Shakti, Dhuliya
3. Vishalsagar, Dhuliya
4. Gopi Milk Products, Puna
5. Gautam Milk Products,Kopargoan
6. Gayatri Milk Dairy
7. New Suraj Dairy, vijapur
8. Sarita Milk Producyts, Kadi
9. Britannia Ghee
10. Neslte Milk powder, Ghee
11. Sardar Dairy, Mehsana
12. Vimal Dairy, Mehsana
13. Royal Dairy, Gandhinagar
14. Suffal Paneer
15. Satyam Dairy, Gandhinagar
16. Sumathur dairy
17. Mahakall Dairy, Sidhp
71

72.
6.7 Promotion Policy
promotion activity mainly consists of advertisement. Sumul is a cooperative sector and
so the advertisement budget is quite less. However Sumul dairy spend nearly 20 to 25 lakh on
the advertisement. The contract of advertisement is with the Venus ads. Here advertising is
done through hoardings, banners, wall painting, newspapers, and stickers etc. Sumul as part of
promotion activity holds “Sumul healthy baby contest” on regular intervals. The participation
is increasing every time the contest is being held. Here every one is given information about
product of Sumul and their views regarding the Sumul product. What change they want?
Which other product they want? Are also being asked shop painting is also promotion activity
carried on by them.
6.8 System of Approaching the
Customers :
Sumul is doing the following activities to Approach to its customers.
Advertisement
By giving the advertising and to a local TV channel by hosting famous anchor
advertising through during festival Seasons.
Paneer Show
In this show different items made from paneer are sold at a discount rate.
Healthy Baby Contest
In order to popularize milk and milk products, Sumul organize every year
Sumul Healthy Baby Competition. Healthy Baby Contest is unique contest of its kind in surat.
It is conducted each year since 1992 successfully.
Education Programs
The firm also gives information to the cool children about cow milk by visiting
different type of schools in Surat city.
House Visits
The companies also visit different houses and collect information about
different products of the company and also take suggestion from the customer.
Another Promotion Activity :
72

73.
 Changes have been done in paking and slogans of few products.
 Door to door advertising is done for new product.
 Facility of taking loan from bank for vehicle and refrigerator are given to agents.
 A mobile van with facility to test milk show films to customers and address public
regarding the hygienic aspects of Sumul milk.
 “Sumul Dairy Cooking Competition” organized by Sumul at Hotel Holiday Inn, Surat.
 “Rasoi Show” organized by Sumul at Hotel Holiday Inn, Surat.
 Sumul Healthy Baby Competition.
 Sumul Painting Competition 2002-02 organized by Sumul & Saint Xavier’s School
 School students visiting Sumul as a part of their education to know about production
activity.
6.9 Customers Satisfaction :
Needs:
 Hording & banners of Sumul products are used for advertisement.
 Change have been done in packing & slogans of few production
 Door to door advertisement is done for new products.
 Facility of taking loans from bank for vehicles & refrigerators are given to
agents.
 The schoolboys & girls, who are the future customer, are educated about Sumul
milks & milks products & its purity.
 A mobile van with facility to test milk, show films to customer & address
public regarding the hygienic aspects of Sumul milk.
 Cash center has been opened in different areas & through bank so that the agent
can deposit their cash daily.
Feedback
 After personal visit to customers & explaining the causes of complaint.
 Replacement is given for storage milk or low weight milk pouches.
 If agents changes more than MRP than they are fined & even terminated.
 Agents may also be terminated for his unwanted behavior.
 Customer satisfaction is most important for the organization.
 The organization goes for consumer survey to know their preferences &
intended Demand.
 A separate wing is creating in the sales department who takes care of customer
complaint. Consumer forums in different areas are formed and regular meeting
are organized to address their grievances.
 Complains are received either by the letter or telephone.
 Complains are entered in to the customer complaint resister.
 Seeing the nature of complaint, action is taken.
Complain
73

74.
 Curding of milk
 Low weight
 Price changed by the agent more than MRP
 Agent’s Behavior
 Leakage
Complain Process Steps
 Receive the complain
Complains are received either by the letter or telephone.
 Complaints are entered in to the customer complaint resister
 After the proper evaluation of complains the necessary steps or action are taken
by the marketing department.
6.10 Records of Customer Base :
Sumul has got more than 1900 customer (approx) and Cods No. is given to each and
every customers telephone / fax no., email, person to be contacted. Sumul is also maintaining
file for each and every customers and copy of any correspondence exchanged between the
customers by Office of Branch Office are available in the said file for reference, i.e. whenever
Office is corresponding with the customers, a copy of the same will be forwarded to the
respective Branch Office and Vice-versa.
74

75.
An
Introduction
To
Finance Department
CHAPTER CONTENTS
7.1Hierarchy of finance Department
7.2Objective
7.3Source of Finance
7.4Activities of Finance department
7.5Cast system
7.6 Payament Process
7.7Study of final Accounts
7.8Tresury operation
75

76.
7.1 Hierarchy of Finance
Department :
Managing Director
Material Manager Account Manager Finance Manager
Assistant Manager
76
Senior Executive
Junior Executive
Senior Assistant
Junior Assistant
Workmen

77.
Finance management is that managerial activity which is concerned with the planning
and controlling of the firm financial resources. Still today it has no unique body of knowledge
of its own and draws heavily or economic for its theoretical concept.
“Finance management means the use of such managerial function as planning and
control to undertake finance function.”
- Earnest Walker
Sumul is the co-operative so it has not special financial department. Sumul require a lot
of funds for meaning its working capital needs and other obligations. It manages its working
capital needs through internal funding only. There is regular, assured and smooth in flow of
cash from milk sales from the agents to dairy’s Cash Collection Centers on day-to-day basis.
The dairy runs there centers for all 365 days without fail. Intact there is a separate cash
recovery department in the organization to look exclusively this aspect. Because of its excellent
cash collection system. Sumul generally does not face any difficulty in dispensing amount to
the producers every month and meeting other obligations.
However, for the expansion work and setting up new projects, it takes loans from
NDDB
7.2 Objectives :
The main objective of finance department is Sumul are as under.
1. To monitor & measure debtors
2. To prepare profit & loss account
3. To maintain working capital at minimum level compared to last year.
4. To prepare a balance sheet of 7th
may each year.
5. To monitor & measure internal customer satisfaction.
6. To increase short-term investment by 10%.
77

78.
7.3Sources of Finance :
In the Sumul dairy requirement of finance is major into two major areas.
1. In working Capital
2. Investment on expansion
These requirements fulfill by taking loan and issuing share.
(1) For working Capital :
To meet the needs of arising working capital Sumul makes transactions
from the following banks.
 The Surat District Co-operative Bank Ltd, Surat
 Sarvoday Sahakari Bank Ltd, Surat
 State Bank of India, Surat
 Surat Mahila Nagrik Sahakari Bank, Surat
 Indian Bank, Surat
 Dena Bank, Surat
 Co-operation Bank, Surat
(2) For Investment on Expansion :
 National Dairy Board
 Share capital
 Debenture
78

79.
7.4Activities of Finance Department :
1. Planning & budgeting of financial resources.
2. When financial resources is not that time taken loans. Issuing shares.
3. Issuing financial resources to different department. Working capital managing
4. Balance sheet & Annual general prepared. Accounting management.
5. Cash management
Annual Business Plan:
The annual business plan is prepared by taking the information regarding sales of every
product. The sales officer compile these data taking into consideration growth rate of city
population, per capital consumption so as to arrive at overall market size and r=targeted market
sale for Sumul product, for the effectiveness of annual business plan the data regarding
marketing channel, and product mix are needed.
Data Required for Annual Plan:
11 Product mix plane
12 Marketing channels
13 Manpower requirement
14 Estimated investment
15 Institutional demand
16 Segment wise demand estimation
17 5 Years procurement analysis
18 5 Years procurement capacity
19 Urban population demand
79

80.
7.5Cost System :
Cost is one of the main factors affecting finance department. There are lots of control
techniques through which companies can control their cost. Costing is the factor that affects the
pricing as well as profits of the company. If the costs are controlled then the company can fix
competitive price and achieve targeted returns. If the company is able to get the cost at minim
um level then can get an additional benefit over their competitors. To control Cost Company
might have to:
1. Replacement of worm out machines and equipments with new ones.
2. Make or buy decision
3. Extension of existing production plant.
4. By having latest technology machines and equipment.
5. By producing large quantities of products.
6. Controlling the inventory levels.
7. To do investments where maximum returns can be achieve.
Cost Structure of Product:
Production cost
+ Transport expenditure
+ Profit Margin
+ Commission
------------------------------
Cost
80

81.
7.6Payment Process :
1. Collection of sales bills & sales data
2. Data verification with sales information
3. Feed concern data in computer
4. Feed duration data in computer
5. To pass duration entry to the computer.
To the Milk Producers
Finance department will make payment on the base of certified & approved bills.
1. Receipt of milk collection data.
2. Verify the data with concern department & payment for each dairy co-operative
society.
3. Feed all the data in computer with oracle support
4. Reduction of DCSP (dairy co-operative society purchase) & other miscellaneous
5. Account of net amount payable to society is prepared.
6. The payment will send by MT (Money Transfer) by district co-operative bank.
To The Transporters
All the come to the finance department for final payment. Every bill is certified by the
concern department authority. They have to give justification for any expenses.& then finance
department will make payment to the transportation for any expenses.& then finance
department will make payment to the transporters on the bases of certified & approved bills.
81

82.
7.7 Study of Final Accounts :
From the study of the profit & loss account of the year 31-03-04, it can be measure that
the net profit of the firm (income-expenses) is 69,88,826. Also from the study of the final
accounts it can be easily seen that the firm is getting more & more profit. Because this tears
that the profit of the firm is 48 crores more than the profit of last year.
7.8 Treasury Operation :
The treasury operation of the company is panned in such a way so that it maintains
purchase cost, production cost, inventory management and budgeting based on the market
forecast. Treasury operation is maintained to facilitate demand and supply condition, timely
payments for purchases, meeting contingency expenses. Proper dispatching of the good on
delivery dates and minimizing opportunity cost. Some unseen contingency may arise such as
strike; flood fire etc. for this purpose also there way should be made.
82

83.
An
Introduction
To
Purchase&StoresDepartment
CHAPTER CONTENTS
8.1 Purchase departement Introduction
8.2 Organization
8.3 Activities
8.4 Activities of stores departement
8.5 Storing process
8.6 Inventory mgt
83

84.
8.1 Introduction
In a narrow sense the purchasing means going the open market,finding the lower price at which
a standard item is offered & selecting a supplier who is offering it at that price. but ina broader
sense purchasing is much more then that . it can be defined as a art or science.
8.2 Organization
The purchase department organise their purchase function in such a way so that it facilates
smooth functioning of manufacturing processes . They make timely purchase of row material
and other required items.They organise their purchase and store function in order to reduce
their cost and time .
8.3 Activities of purchase Departement Organization
Mainly purchase dep is related with store dep , finished product development
( Ghee,Sweets and Shrikhand) finance dep , purchase dep is received from various dep like
engineering,laboratory,autogarage,dairy plants and chilling centers.
This indent first of all goes to store dep , store dep verifies the stock position and
later by giving code number and last purchase reference being related to purchase dep.
1.Receives the purchase orders.
2.Cheking the present stock .
3.Placing order for purchase on the basis of price & quality.
4.Preparing comparative statement of party tender.
5.Before receving raw material cheking all the required parameters.
6.Put order on the basis of price list of all the manufacturers.
84

85.
Following materials come under purchase departement:
1.Packaging materials.
2.Machinery spare sparts.
3.Electrical equipments.
4.Stationary productus.
 Computer Hardeware
 Chemicals for Quality controlled lab
 Instrument for calibration
Separate space for each type of products is made and in bin card quantity used & quality
present all such entries are made.
8.4 Activities of stores departement:
1. Storing raw material and finished goods
2. providing the equipment whenever required
3. Maintain bin cards
4. prepare indent letters
5. Keeping records of materials used purchased & current stock
8.5 Store procedure:
when new purchase of raw material is done send to store division ,store in
charge will verify the quantity received & another person from concern dep check the
received stock.
Finished goods store directly from production dep & finished stocks send to
store. About the quantity received on one day the same is entered by store in – charge
with date & time .
85

86.
8.7Inventory Management:
It is a very crucial part of working capital , Hence it is necessary to manage
inventory effectively & efficiently.
It is consists of following:
Raw Material:
 Packing material
 Machinery sparespart
 Electrical equipment
 Stationary product
 Computer hardware
 Edible essence & colors
 Chemical for O.C.Lab
 Instrument for calibration
Finished Goods
 Ordinary Storage
 Cold Storage
86

87.
An
Introduction
To
Others Department
Chapter Contents
9.1 Safety, Health & Environment
 Types of instruments used in testing
 Parameters tested
 Quality certificates
9.2 Transportation
 Penalty system
87

88.
 Distribution System
9.1 Safety, Health & Environment
This departement is Established in 1968 at the established time of sumul.
 Types of instrument used in testing :
1.Analytical Balance :- for measuring weight
2.Infrade Analysis:- for measuring parts of milk like Moisture Balance, Mill Scope
3.Buting strength measurement: - for packing material
4.Molcotestores:- for measuring fat
5.Centrifuge
6.Incubators
7.Hot Air Oven
 Parameters Tested in the Lab:
1. Flavor
2. Smell
3. colors
4. Addivities
5. Neutralizers
6. Acidity
7. Fats
8. SNF
9. Milk Proteins
10. Moisture percentage
11. Yeast & Mold
 Quality Certification:
88

89.
 ISO - 9000
ISO means International Organization For Standardization. It is the international level
organization, which is done to keep rules and regulation of preservation. It was established in
1946 and in 1979 has been implemented contains ISO-9000 series, which standardized by
providing certificate.
Following points are considering for implementing :-
1. To arrange commitment of top management and starling
2. To deside quality policy.
3. To make quality manual
4. To implement quality procedure manual.
5. As per quality procudure manual all the system are audited. Non Conformity report
checks if it is not as per manual.
 ISO – 14000
This certificate is for environmental control and it came in the year 2002
9.2 TRANSPORTATION:
Transport services for milk Distribution and sales activity of sumul always active in all
times and situations.
The distribution of milk is done through contract vehicle Each vehicle more 4 times
daily in the route. The advance payment is done after 20th
of the runing month and final
payment in done on 14th
of the next month.
The penalty is charged in the following case:
1. If vehicle does not reach on stipulated time.
2. If vehicle keeps more materials than gate pass.
3. If loader of the driver misbehave at the dispatch dock.
4. If there is complain from the agents.
5. For the supply of less material to agents.
 Distribution Network:
For Product Marketing Sumul has Distributors and Parlors. In Surat district Sumul has
total 20 distributors and 30 Sumul Dairy Parlors.
Milk collected at DCS level is transported to chilling centre twise a day. From the
chilling centre, milk is transported to sumul dairy though insulated milk tankers. Sumul has
own 12 tankers to procure milk directly from the village where Bulk Chilling Unit facility is
89

90.
available. As such contract tankers ferry milk twice a day from chilling centres, Sumul owned
tankers go onces a day to fetch milk.
For distributing milk to consumers, sumul has a unique system. It distributes its liquid
and flavoured milk through a network of 1700 agents through out of city. It does not have
distributors for the same. Hawever, for other products like Butter, Cheese, Ghee and Sweets;
Sumul has distributors.According to officials in marketing department, because of this agent
system, they have been able to supply milk in the city unfailingly without fear of agents
suddenly turning hostile in large numbers.
90

91.
CONCLUSIONCONCLUSION
It was a matter of big pleasures and joy acquiring the valuable
experience to undertaking the practical training in “SUMUL,Surat”.
This unit has provided me the best of opportunities for good and useful
experiences for my study visit.
With the objective to gain Practical knowledge and
experience in the company and to study the activities of different
functional area. It was good experience at “SUMUL”. studying
about the different department. On the other hand going for a
market survey was an invaluable addition to my Knowledge. To
conclude in a single student, I personally feel that Training at
SUMUL has added many features to my knowledge wing which
will definitely help me to achieving a success during my future
and career bright.
I observed all the aspects of the company with fill Co-operation
of the person whose behaviors rightly and politely with us. That was
matter for pleasure to us.
91

92.
In last I would like to say that “SUMUL, Surat” has bright future.
I wish it would make its name in all over India.
Thanks
1. LIQUIDITY RATIOS
1) CURRENT RATIO
It measures the solvency of the company in the short term. It also indicates the
firm’s ability to pay its current liabilities .It shows the strength of credit, working capital
and capacity to carry on effective operation.
Current Ratio = Current Assets
Current Liabilities
Particulars 2003 2004 2005
Current Assets 61,35,71,373 69,63,09,286 73,86,10,730
Current Liabilities 39,85,14,654 56,11,87,368 66,39,48,269
Current Ratio 1.53:1 1.2:1 1.11:1
The graph showing the Current Ratio of the “SUMUL DAIRY” for the last three
years is as follows:
92

93.
CURRENT RATIO
0
0.5
1
1.5
2
2002-03 2003-04 2004-05
YEARS
CUR
ASSEST:CUR
LIABILITY
Interpretation:-
As a conventional rule. Current ratio of 2:1 or more is considered satisfactory. We
can see from the above graph that, In year 2002-03, Sumul had C.R. of 1.53:1, though it is
less than standard ratio, but still it says that Sumul is able to meet its current obligations.
But in the very next two years, that of ratio has been reduced, but still Sumul is able to
meet its liabilities, because for two years, ratio is 1.2 and 1.11 respectively, which means
that for every one rupee of current liability, Sumul having 1.2 and 1.11 current assets in
next two years respectively.
But still it shows the little worse condition of Sumul, because the above ratio
indicates that, Sumul’s current liabilities are increasing more rapidly than its current assets.
2) QUICK RATIO
It is used to measure the company’s ability to meet its immediate liability. This ratio
is important for financial institution. Higher ratio i.e. 1:1 indicates sound financial position
of the company.
Quick Ratio = Liquid Assets ( C.A. – Stock)
Current Liabilities
Particulars 2003 2004 2005
Current Assets 61,35,71,373 69,63,09,286 73,86,10,730
Stock 24,04,57,827 14,96,44,750 22,70,17,999
Current Liabilities 39,85,14,654 56,11,87,368 66,39,48,269
Quick Ratio 0.94:1 0.97:1 0.77:1
The graph showing the Quick Ratio of the “SUMUL DAIRY” for the last three
years is as follows:
93

94.
QUICK RATIO
0
0.5
1
1.5
2003 2004 2005
YEARS
PERCENT
Interpretation:-
From the above graph and table, in year 202-03, the quick ratio of Sumul was 0.94.
we know that the standard ratio is 1:1, here that of ratio is little less; it means that Sumul
may fulfill its immediate obligations. In year 2003-04, that of ratio has been increased and
reached very near to the standard ratio. So, we can say that Sumul can able to meet its
current obligations, if it requires immediately. But in year 2004-05, we can see that, that of
ratio has been declined, so Sumul may find difficult to meet its immediate obligations.
Thus, from the above all, we can say that Sumul should increase its liquid cash
either by reducing its stock or reducing its current liabilities.
10.1 Future Plan
(1) Development of Environment Friendly Products.
(2) Development to produce Effcient Production.
(3) High Performance of Production.
(4) To put New Product In Market.
(5) To Continue the Rank Of- Productivity.
The Future Plan Of This Dairy Is Very Prospective As Demand Of Milk
Products is going to increase day by day with the growing population.
94

95.
95