CHAPTER-1

INDUSTRY PROFILE

1.1Introduction
The dairy development department was established in Tamil Nadu in the year 1954. On
oversee and regulate milk production and commercial distribution in the state. The dairy
development department took over control of the milk cooperative. It was replaced by the Tamil
Nadu co-operatives milk producers federation limited in the year 1981. On February 1,1981, the
commercial activities of the cooperatives were handed over to Tamil Nadu co-operatives milk
producers’ federation limited which sold milk and milk products under the trademark “aavin” .
Tamil Nadu is one of the leading states in India in milk production with about 14.5 million liters
per day.

Aavin

Type Cooperative

Genre Milk and milk products

Predecessor Tamil Nadu Dairy Development cooperation Limited

Founded 1958(Tamil Nadu)

Revenue US$660 Million (2015-2016)

Owner Government of Tamil Nadu

Parent Department of animal Husbandry, Dairying(Tamil Nadu)

1.2Activities
The Tamil Nadu Co-operative Milk Producers' Federation Limited is an apex body of 17
District Cooperative Milk Producers' Unions. It is headquartered located at Aavin Illam,
Madhavaram Milk Colony Chennai and has four dairy plants at the following locations in
Chennai.[1]

• Ambattur - capacity of 4 LLPD

• Madhavaram - capacity of 3 LLPD
• Sholinganallur - capacity of 4 LLPD
 • Ambattur - Product Dairy

These dairies collect milk from district unions, process and pack in sachets and send for
sale to the consumers. The Ambattur product Dairy is engaged in the manufacture of milk
products.

1.2.1Objectives of the Dairy Development Department

(1) To work towards bringing the un-organized dairy sector into an organized structure.

(2) To supervise and regulate the activities of dairy Co-operatives.

(3) To pay remunerative price to the milk producers based on the quality of milk and provide
veterinary inputs and health care to increase the milk yield of milch animals.

(4) To organize dairy co-operative societies in the remote villages to safeguard the milk
producers from the exploitation of the private traders.

(5) To ensure consistent growth of dairying on par with other enterprises.

(6) To ensure availability of cattle feed and green fodder to milch animals even in drought
season.

(7) To develop infrastructure for storage, processing and selling of milk to handle surplus milk.

(8) To ensure availability of quality milk to the consumers at reasonable rates.

(9) To introduce modern technology in various dairy activities.

(10) To ensure availability of milk and milk products as per prescribed quality specifications.

(11) Distribution of quality milk and milk products to the consumers at reasonable price.

1.2.2Functions of cooperative milk producer union

1. Establishment of chilling center

2. Formation of new milk route to collect milk produced by members of the society.

3.Collection of milk societies, process and pack in modern dairy.

4.Supply of quality milk.

 CHAPTER 2

COMPANY PROFILE
2.1Orgin and growth of cooperative dairying in India
From the early days milk production was entirely on a decentralized basis and collection of
milk was attempted by a few private marketing organizations like Keventers and Paulsons whose
setup plants for producing table butter in some areas and also started selling liquid milk to some
institutions and military establishments. Due to the absence of a system of dairying based on
commercial line to meet the demand of the growing urban population, the gap between demand
and supply in cities continued to grow and acute shortage was felt in many areas. Private vendors
took full advantage of such shortages by large scale adulteration of milk and also charged high
prices for poor quality milk.

On account of the general exploitation by the private vendors and as a measure for counter-
acting these acute shortages, a few cooperative milk supply societies were started during the
second and third decades of this century but these societies were invariably consumer oriented
and they did not try to organize the producers or to provide facilities and inputs for increasing
milk production. The first dairy cooperative society was registered in 1913 at Allahabad in UP
and was called “KATRA Cooperative Dairy Society”. Soon, there after seven Dairy Cooperative
societies were registered at Baroda, Belgaum, Dhulia, Bhagalpur, Hubli, Bagalkot, Calcutta.
Between 1914 and 1919 seven more societies were formed. In the year 1919, Calcutta Co-
operative Society (CCS) was started in Nagpur. In 1927 Madras Milk Supply Union came into
being with first processing facilities. In 1932, the Lucknow Milk Producers Co-operative Union
Limited was established.

In1945, Aarey Milk Colony was established by the Bombay government under the Greater
Bombay Milk Scheme. During the Second World War, the increased demand for milk and milk
products from the army and acute shortage of milk in various urban areas gave a new push to the
organization of milk cooperatives and a number milk supply societies were registered in different
parts of the country, particularly in the then Bombay and Madras States which included parts of
the present States of Gujarat and Andhra Pradesh. Most of the societies however continued to be
consumer oriented.

Thereafter, till Independence there was no significant progress in the development of diary
co-operatives. However, after Independence, the first large scale and systematic break-through in
dairy co- operatives in India was made in 1948 by the Kaira District Co- operative Milk
Producers Union at (KDCMPU) Anand, ultimately, the union came to be known as the Anand
Milk Union Limited, abbreviated to "Amul" which in vernacular means 'highly valuable' or
'beyond all prices'. Around this time, the Government of India also decided to make
arrangements for the supply of hygienic milk to Bombay city and this resulted in organized
collection of rural milk produced in Kaira District and its bulk transport by rail to Bombay for
distribution.

2.1.1Growth of dairy sector in Tamilnadu

The Dairy Development Department was established in 1958 in Tamil Nadu. The
administrative and statutory control over all the milk cooperatives in the State was transferred to
the Dairy Development Department on 1.8.1965.The Commissioner for Milk Production and
Dairy Development was made as the functional Registrar under the Tamil Nadu Cooperative
Societies Act.

With the adoption of 'Anand pattern' in the State of Tamil Nadu, Tamil Nadu Co-operative
Milk Producers' Federation Limited was registered in the State on 1st February 1981. The
commercial activities of the Department such as Milk Procurement, Processing, Chilling,
Packing and sale of milk to the consumers etc., hitherto dealt with by the Tamil Nadu Dairy
Development Corporation Ltd., were transferred to the newly registered Tamil Nadu Co-
operative Milk Producers’ Federation Limited, popularly known as “Aavin”.

In the wake of liberalization policy, private dairies have also entered into the field of dairying.
High priority has been given for improving the performance of milk Co-operatives by adopting a
systematic approach and proper strategy in Milk Co-operatives. Significant achievement has
been made by Milk Producers' Cooperative Societies, Unions and Federation in the State of
Tamil Nadu. The cattle population in India is approximately 15% of total cattle population in the
world. India stood no. 1 position in milk production. Tamil Nadu is one of the leading states in
milk production. The milk production in Tamil Nadu per day is 145.88 Lakh litres.

Tamil Nadu state has made a significant progress in the dairy sector and occupies 8th position
in milk production with 6.83 million tons during 2010-11 which is about 5.60% of the total milk
production of the country. At present 17 district cooperative milk producers’ unions are
functioning under TCMPF in the Tamil Nadu State. With 9231 functional cooperatives societies
and 22.26 lakh primary members. However, only 4.19 lakh are pouring members. Currently
148.877 litres of milk is produced per day with a marketable surplus of 127.037 litres per day.

Out of the total milk produced 8% of fluid milk is consumed in the house-holds, 87% fluid
milk is sold and 5% of milk is converted into products. The percentage of share for cooperative
sector was 19.86%, private organized sector 14.64%, and for unorganized sector 65.50%. The
average annual price paid per litre to Dairy Cooperative Societies for cow milk (4% fat and 8.5%
SNF) was Rs.13.54 and Buffalo (6% fat and 9% SNF) was Rs.18.00 during 2007- 08.
 This price has been revised recently to Rs.15.54 for cow milk and Rs.23.00 for Buffalo
milk for all unions. In Tamil Nadu number of functioning Dairy plants are 20 under cooperative
sector (16 union dairies and 4 federation dairies) and 33 private dairy plants (See Table 3.1). The
installed capacity is 29.42 LLD for cooperative dairy plants and 34.79 LLD for private dairy
plants. The current operating capacity of cooperative plants are 25.30 LLD with average capacity
utilization of 75%. The number of operating milk chilling plants are 36 in cooperative sector
with capacity of chilling of 14.75 LLD.

The cooperative milk union provides logistic support to its members such as artificial
insemination, health cover, cattle feed, fodder seeds/slips and livestock insurance coverage,
mineral mixture, emergency veterinary service, milk testing, farmers training on animal
management, clean milk production.

Various schemes are being implemented such as crossbred cattle and buffalo calves
development programmers, establishment of by pass protein supplement MSG units, PC based
Automatic Milk Testing Laboratory, providing milking machines, supply of mineral mixture
supplement, supply of chaff cutter, animal health cover – mobile unit, etc., to increase the milk
production and productivity of animals in Tamil Nadu.

2.2Our mission
Our mission is to support Irish dairy farmers by driving the positive position and consumption
of milk and dairy products through integrated marketing and communication programmers’
based on informed scientific evidence.

Our vision
Our vision is to be the authoritative and trusted voice in advancing the customer perception
and consumption of Irish milk and dairy products

1. Reducing the artificial demands of the milk and milk products.

2. Provide milk and milk product at lower cost.
3. Following quality policy
4. Stand by the international market.
2.3Organisation Chart

MANAGER

DEPUTY MANAGER OFFICE STAFF

ASSISTANTMANAGER ASSISTANT(STORES) ASSISTANT(ACCOUNT)

ASSISTANT MANAGER CLERK TYPIST

SENIOR SUPERVISOR

JUNIOR SUPERVISOR

DAIRY OPERATOR

DAIRY TECHNICIAN

DAIRY WORKERS
 ❖ General role of manager
A. Overall responsibility for management of Milk Plant operations including Quality
Management System and HACCP requirements.

B. Defining the Milk Plant’s quality Policy and Quality Objectives.

C. Presiding over the Management Review meetings.

D. Defining and monitoring the responsibilities, authorities and inter-relationships of all

personnel who manage, perform and verify activities affecting quality.

E. Overview of General Administration and finance.

F. Goal setting for Procurement, Marketing and Production and monitoring performance.

G. Management of Men, Machine, Material, Methods and Resources for optimum utilization and
to ensure their availability for satisfactory quality Management System.

H. Giving feedback to the management bodies such as Board of Directors and Milk feed for
implementing policies decided by such bodies.

I.Interact and interface with both internal and external environment to facilitate implementation
of growth plans apart from consolidation of on going operations.
2.3.1Integrated dairy management system structure(IDMS)

1.Federation
The Tamil Nadu Co-operative Milk Producers' Federation (TCMPF) Limited is an apex body
of 17 District Cooperative Milk Producers' Unions. The commercial activities of the Department
include Milk Procurement, Processing, Chilling, packing and sale of milk and milk products to
the consumers. The Federation has four dairy plants in Chennai, two units atAmbattur where one
unit with a capacity of 4.00 lakh litres per day for processing of milk and second one for a
product manufacturing , third at Madhavaram with a capacity of 2.00 lakh litres per day and the
fourth dairy at Sholinganallur with a capacity of 4.00 lakh litres per day. Note: A fifth dairy is
commissioned atr Thiruvannaamalai and shall be functional soon. These 4 dairies (federation)
collect milk from District Unions. The collected milk is processed and packed in sachets and sent
for sale to the consumers in and around Chennai City. The product dairy at Ambattur is engaged
in the manufacture of milk products such as Yogurt, ice cream, Khova, Kulab jamoon,
Buttermilk, Curd and Mysore pa. Thus, federation covers (10% of the population in Tamil Nadu)
around 22 lakhs as milk producers and 25 lakhs as consumers in its fold.
2.Union

There are 17 District Cooperative Milk Producers' Unions functioning in the State of Tamil
Nadu covering 32 Districts. There are 15 Dairies in District Co-operative Milk Producers'
Unions with an installed processing capacity of 19.42 llpd. There are functional 36 Chilling
Centers in District Co-operative Milk Producers' Unions with installed chilling capacities of
13.55 llpd. The main business of the Union is dairy operations, which is a herculean task
involving huge logistics in procurement of milk, production and supply of liquid milk to the
public.

3.Society
A minimum of 7 or more individuals competent to contract under the Tamil Nadu State Co-
operative Act, owning milch animals, can form a Primary Dairy Cooperative Society, with one
or more villages as its area of operation. The members have to supply milk to the Society which
will procure milk on quality basis and will receive milk cost once in 10 days / 15 days from the
Unions for redistribution to the members. Milch animals are provided with free veterinary health
cover, artificial insemination and the supply of balanced cattle feed. Inductions of Milk
Producers on modern animal husbandry practices are aimed at by upgrading the milch animals
and thereby improving their productivity in the long run for the benefit of the members. The
members of the milk producers’ cooperatives are also provided services like credit for procuring
milch animals, insurance for the animals, group health insurance for the family members of the
milk producers etc.

4.Member

Anybody who owns one or more Milch Animal and have marketable surplus milk can
become a member of the Society. She/he should live within the area of operation to which the
Society is registered. She/he should pay a sum of Rs.11 towards Share Capital.

5.Parlour/ FRO
The main objective of retail outlets of Aavin (Parlour/ FRO) is selling milk and various
products of Aavin.
6.MCCS/ Agency

Milk cooperative consumer societies are units formed by specific societies and function like a
zonal office. They are controlled by the respective zonal offices. The MCCS perform activities
like card sales, cash sales for milk and also manage sale of products.

2.3.2Infrastructure
1.This scheme is being implemented in Erode. Out of Rs.499.94 Lakh, so far Rs.327.91 Lakh
has been released.

2The balance amount of Rs.172.03 Lakh is awaited. All major components like BMC
installation, supply of chemicals, utensils, milking machines and strengthening of laboratories,
etc. have been completed.

3.It is being implemented in Kancheepuram – Tiruvallur Union and Thanjavur Unions.

4.The scheme supports the payment of dues to milk producers, settlement of gratuity dues to
employees and payment due to other Unions.

5.The entire fund for Kancheepuram – Tiruvallur Union has been received while the final fund of
Rs.62.07 Lakhfor Thanjavur Union is awaited from Govt. of India.

6.The state share of Rs.98.86 Lakh for Kancheepuram – Tiruvallur Union and Rs.62.07 Lakh for
Thanjavur Union is also awaited.

2.3.3Quality&control laboratory
• A Quality Control Laboratory at the cost of Rs.69.78 lakhs on 100% subsidy from
the Central Government has been set up at the office of Commissioner for Milk
Production and Dairy Development.
• The above Laboratory function under the
direct control of Commissioner for Milk Production and Dairy Development.
• It analyses the Milk and Milk Products samples collected from Private and
Cooperative Dairies and issues analysis certificate.
2.3.4Awards and rewards
• ISO 9002 Salem District Co-operative Milk Producers' Union has obtained ISO
9002 – 1994 Certificate in the year 2002-2003.
• ISO 9002 awarded for production, supply of milk, skimmed milk powder, butter,
ghee and UHT milk in tetra pack.
• Government gives loans at very lower interest and sometimes government
discounting the loan also.

2.3.5Export license certificate to milk products

The Salem and Erode powder plant have obtained Export License from the
competent authority to export Skim Milk Powder.

2.3.6Cooperate responsibility towards society

➢ Women milk producers’ cooperative societies

In order to encourage the women members to contribute more to the dairy sector, they are
being called upon to organise women milk producers' cooperative societies in their respective
areas. There are 1793 women milk Producers’ cooperative societies functioning in Tamil Nadu.
 CHAPTER 3
PRODUCT PROFILE

Aavin is the trademark of Tamil Nadu co-operative milk producers federation Limited, a
Tamil Nadu-based milk produces’ union. Aavin procures milk, processes it and sells milk and
milk product to customers.

3.1AAVIN DIFFERENT PRODUCTS

The different produce by aavin is limited in following list:

Product name:
• Butter
• Milk-khoa
• Ghee
• Ice cream
• Milk cake
• Milk powder
• Curd and butter milk.
3.1.1PRODUCTS

➢ BUTTER

As per the requirements of customers, we are involved in providing best quality of Plain
Butter, which are extensively used to top certain dishes and in a recipe.

➢ MILK KHOA
 We are enlisted as top company involved in offering a wide range of Milk Khoya. These are
highly demanded in market due to their pocket friendly prices and mouth watering taste. Offered
range is very tasty and is made using best quality milk. Additionally, we also assure to deliver
our products in a committed time frame.

Features:

• High nutritional value

• Unadulterated
• Rich taste

➢ GHEE

We sell quality Ghee from Aavin and is available in 200ml, 500 ml and 1000ml refill packets
and Jars.
 ➢ ICE CREAM

Aavin Ice creams are very popular in the metro city Chennai and sub urban. There are 25
flavours moderately priced available in all milk palour and Franchise retail outlets which are
more than 150 in number.

3.1.2MILK PRODUCTS OF AAVIN:

Aavin produces 4 varieties of milk

• Toned milk
• Doubled toned milk
• Standardized milk
• Full cream milk
Pasteurized Toned Milk FAT 3.0% SNF 8.5%

Standardized milk FAT 4.5% SNF 8.5%

Full cream milk FAT 6 % SNF 9.0%

FAT 1.5 % SNF 9.0 %

Double toned Milk
 ➢ SALE OF MILK
In Chennai Metro, on an average 11.28 Lakh Litres per day of milk is being marketed
through 781 Milk Depots / Delivery Points and 93 Milk Parlours. Monthly milk cards are issued
to the consumers after obtaining advance payment for sustained supply. Sale of liquid milk in
Chennai is increasing steadily. Milk and milk products of aavin are popular among the
consumers.

3.2PROCESSING OF MILK

PROCESSING HALL

HOMOGENIZATION

PASTEURIZATION

TO ACESS THE QUALITY OF

MILK

1.Reduced test

2.MBD test
(methylene blue dye)

3.Lactase test

4.chloride test

5.Ammonia test
 ➢ PROCESSING HALL
In villupuram depot, processing the milk is two types as described as follows.the process of
pasteurization is carried out. Then, transported milk is streamed at about 71°C and then chilling
at 4°C to kill harmful bacteria.

Then the bacteria free milk is stored in silo(large milk storage tank) at 6°C.These milk is then
packed in ¼,1/2, 1 liter pockets and then stored of about 7°C to 8°C.Finally these pocket milk are
distributed to various market palces for sale.

➢ HOMOGENIZATION
In first the homogenization is a process that reduces the size of fat globules by focusing
pressurized hot milk through small whole causing turbulence, the break up the larger fact
globules so that they remain suspended rather than separating in a cream layer at the
top.Homogenization effects the development of atherosclerosis, coronary, heart disease milk
allergy,diabetes.

➢ PASTEURIZATION
It is a process by which the disease causing bacteria in the milk are destroyed without losing
its nutritive values.The milk is boiled at 60°C foe thirty minutes and cooled quickly.

Whatever the method is used for preservationof food, cleanliness and general sanitary
conditions are imported.

3.2.1TO ACESS THE QUALITY OF MILK

1.Reduced test

It acess whether the bacteria are present or not in the milk. If the bactria are present in the
milk it will kill the bacteria.

2.MBR test (methylene blue dye)

3.Lactase test

It is used to determine the lactic acid concentration in milk and milk product since its value
has to be kept under fixed law limits.

4.chloride test

It is used to measure the quality of salt in different dairy products.

5.Ammonia test

It is used to measure the ammonia concentration and it determine the good quality milk.
Ammo acid de gradation of sort cheese.
 CHAPTER 4
DEPARTMENTAL PROFILE
4.1Important department are:
• Administrative department
• Finance and accounts
• Quality and testing
• Marketing
• Purchase
• Transport
• Planning
• Projects and engineering

1.ADMINISTRATIVE DEPARTMENT
Primary Milk Cooperative Societies and District cooperative Milk Producers Unions and
Federation were previously administered by elected Boards. As the terms of office of the
members of elected Board already expired and as they were continuing only on extended term of
office as per section33(10)(aa) of Tamil Nadu Cooperative Societies Act, 1983, the Government
issued orders terminating the extended term of office of members of Boards of these societies
and the Special Officers have been appointed under section 89(1) of Tamil Nadu Cooperative
Societies Act, 1983. All the primary Milk Cooperative Societies are now functioning under the
Control of Special Officers since 26.5.2001. In respect of District Cooperative Milk Producers
Unions, the Collectors of respective Districts have been appointed as Special Officers and for
Tamil Nadu Cooperative Milk Producers Federation Ltd., the Managing Director of the
Federation has been appointed as Special Officer.

➢ FUNCTION
• Managing employee recruitment, performance & retirement
• Leave sanction
• Managing employee loans, punishments,awards&permissions
• Administrative
• Vehicle monitoring
 • Vigilance & industrial relations

➢ RECURITMENT PROCESS

Based on the vacancy list, internal promotion process takes place. The remaining vacancy
positions are filled through Employment Exchange. The Personnel section sends the requirement
details of the positions to the exchange based on which the list of candidates are forwarded to the
personnel section. As per the special by-laws of TCMPF for those eligible candidates who
comply with the norms (recruitment standard for that post) will be sent call letters to attend
Written Test / Interview. Interview Committee is formed for selection of candidates with proper
approval. After Written Test, the qualified candidates are requested to attend personal interview
before the Interview Committee. Candidates found suitable by the Interview Committee will be
issued Appointment Orders. Copy of Appointment Order will be given to Accounts. For unfilled
vacancies and if the selected candidates did not join, recruitment procedures will start again.

1. Manage On boarding of employees

Candidates found suitable by the Interview Committee will be issued Appointment Orders.
Copy of Appointment Order will be marked to Accounts section. In the Appointment Order, it is
informed that the candidate should join on or before a specified date. If a person requests time to
join, it will be considered after obtaining required approval. On the date of joining, individual
should furnish data in the Service Register created for each employee that contains all the details
of the employees.

2.Training & Induction

An Induction Schedule is prepared with a view to impart knowledge about departments /

functions of the company. After joining of personnel, they are required to adhere to the
Induction Schedule. After the induction programme, the new recruits are allocated to the User
Departments as per requirement by the Personnel Section. All the new recruits will be on
probation for one year during which period their performance will be observed by obtaining
quarterly wise reports from the departments concerned. On successful completion of the
probation period the services of the candidates are regularized and the annual increment due to
them on completion of one year is granted. If the performance of the candidates is not
satisfactory, their probation may be extended for a further period of six months.

➢ Performance Management Process

1.Annual Increment Process

The Annual Increment process has 4 increment cycles per year (1st of Jan, Apr, Jul
andOct).The increment of 3% for all the cadres is fixed as per the Government norms.
2.Elevation Process

This elevation process is applicable if an employee continues to be in a designation for 10

years, he is eligible for selection grade elevation with an increment of 3%+3% on completion
of 10th year. In case of the employee continues to be in the same designation for another
10 years, he is entitled to special grade elevation with an increment of 3%+3%. If the
employee continues for another 10 years, the employee is eligible for stagnated increment
/Bonus increment of 3% (i.e. at the end of 30th year). of 10th year. In case of the employee
continues to be in the same designation for another 10 years, he is entitled to special grade
elevation with an increment of 3%+3%. If the employee continues for another 10 years, the
employee is eligible for stagnated increment /Bonus increment of 3% (i.e. at the end of 30th
year).

3.Promotion Process

The promotion for an employee is considered on the following factors:

Vacancy
Seniority
Suitability Report ( Performance Appraisal from the unit officer)
Vigilance & Industrial Relations section Report

Based on the seniority list in the feeder category promotion will be given after receiving
suitability report from the officer concerned and No objection certificate from Vigilance & IR
section. The promotion will be given based on the TCMPF By-laws. The promotion benefit as
per rules viz. will be 3% (pay + Grade pay) and revision of the grade.

At the time of each process of increment the Personnel section will prepare increment
sanction details along with the Service Registers of the employees of respective increment cycle
and sends it to the accounts section for necessary Service Verification Certificate. The Accounts
section verifies the Service Register with the Pay bill documents furnish SVC for sanctioning the
increment for the employee and on recording the necessary.

Based on the SVC obtained from the Accounts section, the Personnel section at HO prepares
the Annual increment details in a specified format and on obtaining approval for the same from
GM (Admin). The sanctioned increment is recorded in the Service Register.
 ➢ LEAVE SANCTION

1.Casual Leave/ Compensation Leave/ Restricted Holidays

The Employees seeking for leave shall submit a Leave letter which should be approved by
competent authority. The approved leave letter to be submitted to the Personnel section to record
the details of leave in the CL/CPL/RH Register. Based on the availability of leave at credit of the
employee the personnel section deducts from the balance leave in the register.

Leave at credit for a year

Casual Leave – 12 Days
Compensation Leave – Maximum 20 days (To be taken within 6 months)
Restricted Holidays – 3 days (Only for Administrative staff)

2.Privilege Leave/ Annual Leave with Wages (PL/ALWW*)

To avail PL/ALWW prior approval must be obtained compulsorily from the competent
authority. A letter by each individual to be requested and based on the availability in the Service
Register the Leave sanction is being put up for approval to the competent Authority. The
sanction copy is given to the individual and one copy to the accounts section for claiming salary
to the individual. At the time of rejoining for duty, a joining report is required to be submitted
and obtain approval from the competent Authority. Leave details of PL/ALWW are recorded in
the Service Register and shall be attested by GM (Admin). The availed leave is deducted from
the leave balance available on credit in the Service Register.

3.Surrender Leave Process

PL leave can be encashed once in a year / once in two years for a maximum of 15 days or 30
days respectively. In case of ALWW, a maximum of 15 days of leave can be encashed once in a
year. Details of Surrender of PL/ALWW are recorded in the Service Register and shall be
attested by GM (Admin). The surrendered leave is deducted from the leave balance available at
credit in the Service Register.

4.Sick Leave#/ Unearned Leave on Medical Certificate

In case of availing an unearned leave on Medical Certificate an employee can avail at a time
for 59 days. The Sick leave for the dairy workers can be availed for a maximum of 12 days per
year as per the Factory Act. Medical Certificate to be enclosed along with the leave letter within
three days of availing the leave. At the time of rejoining the employee must submit a Fitness
Certificate along with joining report. On approval obtained from the competent Authority. The
Personnel section records the details of SL available in the Service Register and shall be
sanctioned / attested by GM (Admin). Medical certificate/fitness certificate must be obtained
from government civil surgeon.

5.Unearned Leave on Private Affairs

As per the rules, This type of leave can be availed only by the administrative personnel. This
leave can be availed for all purposes. A maximum of 180 days/half pay (i.e. 90 days/ full pay)
can be encashed only at the time of retirement subject to availability of leave at credit. These
details are also recorded in the Service Register.

6.Maternity Leave

The female employees can avail a maximum of 180 days for maternity purpose. The leave
can be availed pre-confinement or post confinement. In case of abortion, a maximum of 42 days
of maternity leave can be availed provided the employee shall submit a certificate from the civil
surgeon certifying for 13 weeks of confinement before abortion. The male employees can avail
Special Casual Leave for a maximum of 7 days to assist the spouse in case of abortion.

➢ MANAGING EMPLOYEE LOANS, PERMISSIONS, AWARDS &

PUNISHMENTS

1.Study Permission

If an employee wishes to pursue any degree, diplomas, certifications, etc. during the service,
the employee is required to obtain permission from Managing Director/ Joint Managing Director.
Based on the approval after completion of the course necessary entry in the Service Register is to
be made.

2.Punishment & Awards

In case of any disciplinary violations by an employee, the section officer raises a complaint to
the unit officer. Based on the complaint the IR section issues a memo to the employee seeking
explanation for the violation committed. Based on the reply, the management will take decision
on Award of punishment for the same. The details of the punishment should be recorded in the
Service Register of the employee. Meritorious award and completion of 25 years of service
without adverse remarks also recorded in Service Register.

3.Availing Federation Long Term loans

An individual in order to avail loans for the purpose of HBA/house site/ vehicle/ medical
reimbursement/ health fund/marriage shall raise a request to the Personnel Section. Based on the
Permission Order from the GM (Admin) the approval is sent to the finance section for
sanctioning advance. The details may be recorded in the Service Register.
4.Leave Travel Concession (LTC)

LTC can be availed in a block year (i.e. once in four years). The employee can avail
concession for both the trips in the block year. If the employee’s retirement is due within the next
two years he is entitled for only one way trip concession. The individual should obtain prior
approval in order to avail LTC. LTC can be availed on CL/PL/CPL/ALW. The sanction /
rejoining details of the LTC is recorded in the Service Register.

5.Transfer Process

Based on the individual request or management’s decision an employee is transferred to any

unit/unions. The Service Verification Certificate to be obtained in the Service Register and sent
to the respective unit. On joining at the respective unit/union, date of joining report is sent to the
previous unit/union. Based on the joining report the Paybill section prepares a Last Pay
Certificate (LPC) and sends to the respective unit/union to transfer the paybill to the joining
unit/union.

➢ VEHICLE MONITORING
1.Purchase of New Vehicles

Regarding the condemnation and purchase of New vehicles, a committee will be constituted
for analyzing the Kilo Meter plied and expenditure incurred with reference to the terms and
conditions stipulated in the Government Orders and recommended for the condemnation. On
receipt of recommendation, proposal for the purchase of New vehicle at DGS&D rate will be
submitted to Board for its approval subject to availability of Budget Estimate. On receipt of
Boards approval, a proposal will be sent to CMPDD for permission for condemnation and to
purchase of new vehicle. On receipt of permission from the CMPDD, the new vehicle will be
purchased. The condemned vehicle will be handed over to Transport Unit for disposal in Audits.

2.Vehicle Monitoring

The details of the entire vehicle are to be recorded in the Part I and Part II Log books
maintained for each vehicle.
Part – I Log book – Driver duty details, vehicle KM details, fuel consumption
Part – II Log book – DOP/ Vehicle details / Expenditure details.
 ➢ VIGILANCE & INDUSTRIAL RELATIONS
1.Industrial Relations

Personnel-IR section functions at TCMPF HO under the control of GM (Admin). An officer

at the level of DGM (admin) looks after the activities in the IR wing. DGM (Admin) looks after
the files relating to disciplinary as well as legal matters. Disciplinary matters arise out of
inspections/ investigations / enquiry under TNCS Act. The vigilance findings given by the
Vigilance section is taken up for enquiry by the federation and the department of Vigilance and
anti-corruption. The files relating to the disciplinary action initiated by the JMD’s unit are also
processed for orders of the MD whenever the same punishment is required. Legal cases mainly
relating to service and labour matters, conciliation, disputes before the tribunal and labour court,
High court, Supreme court an opinion is also given in respect of legal matters including drafting
of agreements before being placed for enquiry by GM (Admin.) and MD. The IR section also
deals with the Trade Union demands / disputes and welfare matters.

2.Disciplinary Action

Disciplinary actions against officers in the cadre of AGM and above are dealt in this section
including district unions.

4.2FINANCE ANA ACCOUNTS

➢ Preparation of Budget Estimates and Revised Budget Estimates

The budget preparation is an annual exercise. The overall budget estimates for the subsequent
year should be prepared and submitted for approval the Board and General Body. The federation
units submit their respective estimates to the Head Office. The finance section of HO
consolidates the budget estimates of all units and based on the physical and financial targets the
overall Budget Estimate is prepared.Revised Budget Estimate for the current year includes the
actual up to 31st December and the estimates for the last quarter of the year. The components of
the Overall Budget Estimate are as follows:

• Capital Budget
• Revenue Budget

o Sales
o Other receipts
o Raw Materials
o Expenditure
Purchase of products
Overheads
Staff Compensation
 Other expenses (interest, depreciation)
Cash Budget
Budget Estimate of Sources and uses of funds
Income and Expenditure Statement
Cash Flow Statement
Profitability Statement
Cost Statement
Revised Budget Estimate

4.3QUALITY AND TESTING

➢ Quality check of raw materials (raw milk, butter, SMP, products, other materials)

1.Quality Inspection of raw milk procured

At each level of procurement of raw milk a sample is taken to test certain parameters such as
Quality of milk (Fat content, SNF content, Temperature reading, Lacto meter reading, MBRT).
The samples are taken as per the following:
At Society Level – Farmer wise
At CC/BMC – Society wise
At Unions –Society wise, Tanker wise
Federation Dairy – Tanker wise

2.Quality Control at Dairy

At regular interval from storing Milk at SILO, to packing milk in sachets and loading in to
vehicle, the quality of the milk is tested as per SOP/ ISO standards.
The quality of raw materials, water, chemicals, packing materials and other consumanles is
verified by QC.
The quality control maintains following registers
o Dairy Chemistry register/ QC processing register
o Dairy Bacteriology register
o Tanker seal verification register
o Lab Report
o Adulterants detection register
o Plate counts register

3.Quality check on receipt of materials

On receipt of the materials Stores sends the Inspection Report to QC. Samples are collected
by Lab for quality testing. In some cases, Purchase department receives samples from multiple
vendors during tender processing/ quotation and forwards the same to Lab. Lab collects samples
as per the sampling plan. The samples are tested as per the standard operating procedures (SOP/
ISO) and checked for conformance to specifications as mentioned in tender. If samples are found
to be conforming to specifications, results are documented in. The test reports are prepared in a
prescribed format with remarks and sent to Stores/Purchase departments and also to the user
department. If they do not conform to the specifications, the received items are rejected with
remarks mentioned in the inspection report and sent to Stores department.

4.4MARKETING

Marketing unit looks after the sales of Sachet milk, Milk products and Up country sales
(sales to other states of the country). In addition to the milk produced by the Federation owned
dairies (Metro Dairies), the milk is supplied by Villupuram or Kanchipuram Tiruvallur milk
unions. The unions submit their invoice to the respective zones and on getting it certified, they
submit the same for payment to the Federation. The Marketing Office under Federation is headed
by a General Manager (Marketing) reporting to the Joint Managing Director. The structure of the
Marketing Office is as follows:

The Corporate Marketing Office is located at Nandanam and has key officials
including DGM (Corporate), DGM (Finance), SLN GR AGM (Finance), AGM (Finance), AGM
(Public Relations, Complaints & Consumer Grievances), etc. located in it. Functions of booking
of milk supply, sales, etc. are also performed and coordination with dairies is done from this
office. Accounting and Ledger for sales and clients are maintained in this location.
Chennai is divided into three regions, each of which is headed by a Deputy General
Manager.
The Regional Offices provide geographical and supervisory control over various
sub offices within their jurisdiction.
The Zonal Offices, 16 in number, are headed by a Deputy Manager (Marketing)
who looks after the milk sales in their respective geography. Functions of Milk Card sales and
accounting are performed here. Bookings may also be performed at Zonal Offices which is then
forwarded to the Marketing office for consolidation purpose.
The zones manage the distribution through the milk depots (711). Out of these 219
depots are under the direct control of the Federation. 224 out of the 711 depots are managed by
the MCCS. Delivery points are 268; further split into 131 and 137 delivery points under the
control of Federation and MCCS respectively.
Milk Consumer Cooperative Societies (49) are coming under the administrative
control of Deputy Registrar of Dairy (Tiruvallur and Kanchipuram districts) and perform key
task of linking the end customer with the Federation. These MCCS perform tasks of receiving
milk from the Federation and distributing it to the citizens, though depots and delivery points
under their control. MCCS are managed by the respective zonal offices. They also manage card
sales, cash sales and special orders. Bulk quantities of cards are requested from the zonal office
at the start of the month for sales to the consumers.

4.5PURCHASE

➢ Procurement of Raw milk

The farmers/pouring members supplies milk to the societies and the details of the milk
procured is recorded in the farmer’s pass book and the member wise details of the milk procured
are recorded in the society’s Day Book and the signature is obtained from the farmer. The milk
received from all the members are pooled in cans of 40 ltrs and sent to the nearby
CC/BMC/Union for further processing of milk along with an invoice.

➢ At FBDs based on the conversion direction from federation

The surplus milk over and above the local sales and metro supply are directly sent to FBDs
for conversion on federation account. The milk bill and conversion charges are being processed
at JMD’s office based on conversion of milk into powder and quality report. The settlement to
the supplying District union and FBD are made at Head Office based on the payment advice
from JMD’s office.

➢ Purchase of molasses (cattle feed production) from Government sugar mills

Union participates in the tender followed by Tamilnadu Sugar Corporation after following
procedure. Allotment for the yearly sugar season from various co-op sugar mills is made by
them. Payment is made in advance. Transport arrangement is fixed through the regular tendering
system. Molasses is received at the cattle feed plant and the Final payment will be settled based
on sugar mill weight.

➢ Purchase of spare parts at Transport unit

The Transport stores at Madhavaram raises a Purchase Request (PR) to purchase spares for
aavin owned vehicles. The PR is sent to the Purchase section for approval and based on the
approval the purchase section raises a Request for Quotation (RFQ) to selected suppliers. The
responses are consolidated and put up for committee’s approval. The purchase order is raised to
the supplier quoting the lowest amount after negotiations. On receipt of the spares the receipt log
is maintained in the Inward register and is sent for inspection to test the quality and the details
are recorded in the inspection report. On being approved the materials are sent to the stores and
Goods Receipt Note (GRN) is generated and sent to Accounts Department at Madhavaram Milk
Dairy for payment.
There are 3 major types of purchases
Milk procurement (milk, SMP, butter, etc.)
Dairy operational requirements
Administrative purchases

4.6TRANSPORT

➢ Purchase of spares, tyres, plates, batteries, tools etc.

Transport Department manages the milk collection from Unions to TCMPF and distribution
of milk to AVMs in Chennai Metro. All the Metro dairies have transport departments reporting
to the Transport Unit at Madhavaram. TCMPF uses in-house fleet of vehicles (53 units – 44 milk
tankers and 9 milk vans and 7 condemned vehicles and 1 milk van) as well as hires the services
of contractors for transport of milk and milk products. In milk there are two types of milk, sachet
milk (packet milk) and bulk milk (loose milk sold in automatic vending machine). TCMPF uses
in-house fleet for bulk milk and tries to hire contractor’s services for sachet milk. In-house
vehicles are used for distribution of sachet milk at times of strike and other exigencies. Apart
from this, TCMPF owns 6 vehicles for distribution of products. The milk vans are used for
collection of butter, SMP and sugar.
Major processes covered in this unit are:
Purchase of spares, tyres, plates, batteries, tools etc.
Fleet & Resource Management

➢ Raise Purchase Request and get quotations

The Transport stores at Madhavaram raises a Purchase Request (PR) to purchase materials
(Spares, tyres, MS Sheet (mild steel), Cold Roll Sheet (CR), batteries, tools, office equipment
etc.) to the preferred suppliers (from Vendors List) for the Transport unit. Based on the PR, the
suppliers provide their quotations. The quotations received are compiled and a comparative
statement is prepared to find the bidder who has quoted the lowest (L1) and negotiations are held
if needed. For diesel, PR is sent to the Public Sector Oil companies and proforma invoice is
received from them. Transport unit forwards the same to Finance for processing payments. On
making payment, diesel is received.
4.7PLANNING

➢ Manage conversion to Butter and SMP

The major responsibility that lies with the Planning Department is to manage the conversion
of milk to/ from butter and skimmed milk powder (SMP). The quantities of milk received from
the producers are varied during the summer and winter seasons. It is observed that higher
quantity of milk is received during winter (flush season) than during the summer season (lean
season). Excess milk received during flush season is converted into butter and SMP and stored to
be used during the lean season for matching the demand.

➢ Prepare milk movement plan

Based on the milk requirement, monthly milk procurement target is fixed by Aavin for the
individual milk unions. Based on the milk procurement trend (of the past month) this number is
adjusted and the detail of the individual district local sales and sales to the Federation is
obtained. Details of the quantity of milk (MM and SSM) to be dispatched to Metro dairies are
received from Ambattur unit. Based on the capacities of the metro dairies, the quantity of milk
that has to be processed in the individual dairies is known. Any surplus that is remaining is
planned to be dispatched to the Feeder Balancing Dairies for processing. Daily stock of butter
and SMP is collected from the individual FBDs. Based on this, Planning Department assesses if
there is sufficient storage space for converted butter and SMP, else they have to look for options
to store (inter location transfer/ outsource for storage). Planning department assesses the
requirement for reconstitution (quantity) for Metro and district unions and accordingly allocates
the stock of butter and SMP. If insufficient stock, Planning directs for purchase through Up
Country market.

4.8PROJECTS AND ENGINEERING

➢ Managing loans/advances/grants/subsidies

1.Federation to Unions (Advances)

The unions raises request to obtain advances from federation for making payment to societies
towards
The supplies made and bills under process
Stock of products available at the union dairies to be lifted by the federation
To be adjusted against future supplies
HO will make adjustment for the bills and recoveries is made either on installment or whole bill
amount.
2.Federation to Unions (Loans)

Unions shall avail only working capital loans with/without interest. The recoveries are made
either through bills or re-payment on a monthly basis.

3.Unions to societies (Loans/Advances)

The societies can avail advances only against the value of the milk supplied.

Grants/subsidies/schemes/advances from Govt./other agencies/banks/Financial institutions

Loans can be availed from Central Govt. / State Govt. /financial institutions (NDDB,
etc.)
Loans/Subsidies/grant can be availed from Govt. /funding agency (World bank)

Grants can be availed by both union & federation in the form of capital grant or revenue
grant. To avail grants from the Government, the planning section conducts exploration /
identification of the projects. Assessment of the requirement and preparation of project report by
planning section. The Detailed Project Report is submitted to the /through the government on
which the Govt. communicates the sanction order to HO on receipt of total grant. SAs per
sanction federation retains its own portion of funds and transfers the proportionate funds to the
union. The unions retain the portion of funds to be implemented by unions and again transfer
remaining funds to be utilized through federation. SAfter obtaining the funds the unions prepare
proposal, tender, specifications, etc. finalizes the PO for the fund retained. The Inspection is
done by either third party / in-house. The Union prepares proposal for schemes under IDDP (ex:
marketing activities, asset creation). Planning section obtains the sanction order and funds.
Accounts I section receive the allocation details and funds and maintain scheme wise fund
balance details and periodical reconciliation. On completion of the project Utilization Certificate
will be obtained by Planning and is sent to the agency concerned /govt.. The Loan re-payment is
monitored by Accounts I section.
 CHAPTER 5
OBSERVATION

5.1OBSERVATION:

➢ AAVIN COOPERATIVE MILK PRODUCER’S VILLUPURAM is specialization in

producing the milk products.
➢ The employees health have been maintained by providing good working environment
➢ The waste and Affluent generated in the factory will be removed immediately
➢ I observed that workers of I observed that workers of AAVIN COOPERATIVE MILK
PRODUCER’S VILLUPURAM provided, Facility for sitting, First Aid Appliances,
Canteen, Shelter, rest rooms, and lunch rooms,s.
➢ Safety measures provided to employees.
➢ Proper co-ordination between management and employees.

5.2CONCLUSION:

I got a practical knowledge of these functional areas like training, development, production,
tools, inventories, etc and also how the industry is implementing. This was my first real
experience to work in a metal industry

Learning through observations provides a clear idea about practices and policies in the
organization. This training program provided an excellent idea about the organization behaviour
that I learned.

The summer training was very useful to me in knowing about each and every detail of the
various departments and it was useful to me to gain more knowledge.

Interactions with the various departments provide insight about each department and it will
help me for future success. This summer training provides over all knowledge enquiry. Since I
don‘t have any experience on this type of summer project it was very good experience in
knowing about the training program.