VELAMMAL ENGINEERING COLLEGE

DEPARTMENT OF SCIENCE
MBA (2018-2020)

INTERNSHIP REPORT (MARCH 2019)

PREPARED BY:
Acknowledgement

The internship opportunity we had with Tamilnadu Co-operative Milk Producers’

Federation Limited (TCMPF), Joint Managing Director’s Office, Ambattur was a great
chance for learning and professional development. Therefore, we consider ourselves as
a very lucky individuals as was provided with an opportunity to be a part of it. We are
also grateful for having a chance to meet so many wonderful people and professionals
who led us through this internship period. Bearing in mind previous we are using this
opportunity to express my deepest gratitude and special thanks.

We express our deepest thanks to Dr.C.Selvaraj, Ph.D for taking part in useful decision
& giving necessary advices and guidance to make our Intern life easier.

We perceive as this opportunity as a big milestone in our career development. We will

strive to use gained skills and knowledge in the best possible way

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

Children and adolescents should be encouraged to consume milk products because

this is the period of their lives in which they are building their peak bone mass and
developing lifelong habits. This article highlights the benefits of milk and milk products,
as well as common misconceptions.

Milk is a nutrient-rich, white liquid food produced by the mammary

glands of mammals. It is the primary source of nutrition for infant mammals
(including humans who are breastfed) before they are able to digest other types of food.
Early-lactation milk contains colostrum, which carries the mother's antibodies to its
young and can reduce the risk of many diseases. It contains many other
nutrients including protein and lactose. Interspecies consumption of milk is not
uncommon, particularly among humans, many of whom consume the milk of other
mammals.
 Milk is essentially an emulsion of fat and protein in water, along with dissolved sugar,
minerals (includes calcium and phosphorus), and vitamins, particularly vitamin B
complex. Commercially proceed cow’s Milk is commonly enrich with vitamins A and D.

Many Countries require pasteurization to protect against naturally occurring and

artificially introduction microorganisms. Cooling further prevents spoilage (souring and
curding). Fat from whole milk(about 3,5% fat content) can be removed in a separator to
produce cream and leave low-fat milk(1-2%fat) or skin milk (0.5% fat). Milk is usually
homogenized, food under high pressure through small openings to distribute the fat
evenly. It may also be condensed, evaporated, or dehydrated for preservation and ease
of transport. Other dairy products include butter, cheese, and yogurt.
PROFILE OF AAVIN
The Department of Dairy Development in Tamil Nadu was set up in the year 1958.
The Tamil Nadu Dairy Development Corporation Limited was formed in July 1972 to
manage the activities such as milk procurement, processing and marketing of the milk
and milk products.

Based on the “Anand” pattern developed by Dr.Kurien, Tamil Nadu Co-operative Milk
Producers’ Federation (TCMPF) was formed in February’1981 as an apex body of three
tier cooperatives set up in Tamil Nadu and the District level milk producer unions were
formed in the year 1982.

Tamil Nadu ranks among the top ten States with a daily milk production of 201 lakh
liters per day (LLPD) and fourth among the State Co-operatives with a daily average
procurement of 29.46 LLPD in 2017-2018. The per capita availability of milk in Tamil
Nadu has increased from 169 gm/day in 1993-94 to 268 gm/day in 2017-2018. This is
due to increase in Milk production, the rise in per capita income, changing life style, food
habits and export opportunities contributed to the rise in the demand for milk and milk
products.

Objectives:
 To ensure assured and remunerative market round the year for the milk
produced by the farmer members.

 To make available quality milk and value added dairy products to consumers.

 To build & develop village level institutions as cooperative model units to manage
the dairy activities.

 To ensure provision of inputs for milk production, processing facilities and

dissemination of know how.
  To facilitate rural development by providing opportunities for self-employment at
village level, preventing migration to urban areas, introducing cash economy and
opportunity for a sustained income.

Three tier structure of Dairy Cooperatives:

25 members from a village can form a Primary Milk Producers Cooperative

Tier-1
Society (MPCS). This is the base level of the 3 tier system which procures
milk from the milk producing members and supply the milk to District Unions
Village level
with which they are affiliated as members.

The District Cooperative Milk Producers Unions (DCMPU) are the

intermediary Societies at District level and the village level MPCS functioning
Tier-2
in the jurisdiction of the respective unions. The Unions procure surplus milk
from the MPCS, process and market it to the consumers and send the
District level
surplus milk to Chennai Metro Dairies / Feeder Balancing Dairies for
sale/conversion.

Tamil Nadu Cooperative apex Milk Producers Federation is the State level
Tier-3
society wherein all the District Cooperative Milk Producers Unions are
members. The Federation is marketing the milk and milk products in the
State level
brand name of “Aavin”.
Quality and food safety:
All the Dairy plants of Milk received from milk from Milk Co-operative societies in a clean
and hygienic environment adhering to Good Manufacturing Practices (GMP) and Food
Safety management system.

 Ensure safe to consume milk products conforming to standards by following

Food Safety Management System in our activities.
 Meeting all statutory and regulatory requirements related to food safety in all
our activities.
 Ensure mutually agreed food safety requirements of our consumers.
 Communicate food safety aspects both internally and externally.
 Continually review and update our Food Safety Management System.
Milk Co-operative at glance:
PROCESS OF MILK
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
Literer pocket and then stored of about 7’C to 8’C. Finally these pockets Milk are
distributed to various market places for sale.

Can milk

Chiller way

Raw milk

Pasteurization

Homogenization

Separation process

Cream Skim milk

Butter & ghee milk powder

Pasteurization:
It is a process by with the disease causing bacteria in the milk are destroyed without
losingits nutritive values. The milk is boiled at 72°C and colled quicky.

Whatever the method is used for preservation of food, clealiness and general sanitary
condiotions are important.
Homogenization:
Homogenization is the process of breaking down the fat molecules in milk so that
they stay integrated rather than separating as cream. Homogenization is a purely
physical process; nothing is added to the milk. Organic Valley offers homogenized
Grass milk to meet consumer demand for a non-cream-on-top, 100% grass-fed milk.

QUALITY CONTROL OF AAVIN

Aavin is committed “to supply milk and milk procedure and satisfaction of customers
by products best standards of customers by adopting best standards in a hygienic and
safe environment with continual improvement of quality with motivation, commitment
and training of employee”.

The Federation is giving greater emphasis on procuring quality milk from DCSs
under the concept of “Quality Excellence from Cow to Consumer.” Many Clean Milk
Production (CMP) initiatives have been implemented at all the stages of procurement,
processing and marketing.
This Dairy has been certified with ISO 9001:2008, IS 15000:1998 (HACCP) and
IS/ISO 14001:2004(EMS). The milk cold room facilities will be strengthened during the
current year. Further Aavin has set an example that village Dairy Co-operative Societies
could also achieve this milestone
To access the quality of milk the following test are maintained:

1. Reduction test:
It is used to access whether the bacteria is present or not in the milk. If a
bacterium is present it kills the bacteria in the milk.

2. MBR test ( Methylene blue dye)

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

Chloride test:

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

Ammonia test:
It is used to measure the ammonia concentration and it determine the good
quality milk. Ammonia acid degradation of sort cheese.
VARIETIES OF MILK SOLD AND FAT PERCENTAGE:

Type of Milk Pack size ( Ml ) Fat % SNF %

Toned Milk (TM) 500 3.0 8.5

Standardised Milk (SM) 500 4.5 8.5

Standardised Milk (SM) 250 4.5 8.5

Premium Milk (PM) 250 4.5 9.0

Full cream milk (FCM) 1000 6.0 9.0

Premium Milk (PM) 1000 4.5 9.0

Double Toned Milk 500 1.5 9.0

SNF stands for “solid-non-fat”.

TRANSPORTATION OF MILK

These milk tankers are insulated to safeguard the quality of milk. These tankers are
thoroughly cleaned at every unloading of milk at Dairy Plant and certified for its hygiene
for transportation of milk by QC personnel.Milk tankers carrying milk to Dairy Plant and
federation. Transportation vehicle may have doubled layered freezer attach with them.
So that milk securely come without any air pollution or others

After packing is over they will transport the packed milk to many places different aavin
parlours different sellers for that transportation truck is used.
DIFFERENT PRODUCTS
The different products produced by aavin are listed below

Beverage

 Coffee
 Flavoured milk
 Milk shake
 Tea
 Whet drink

Fermented product

 Butter milk
 Curd
 Lassi
 paneer

Hot milk

Ice cream

 Ball
 Candy
 Casatta
  Cone
 Cup
 Delight
 Scoop
 Kulfi

Milk powder

 Badam powder
 Buteer
 Milk powder
 Ghee

Sweets

 Chocolate
 Rasagulla
 Milk peda
 Gulab jamun
 Khova

MILK PRICING
Milk price in aavin are listed below

Old Price
Aavin Milk New Price (1ltr) Retail Price (1ltr)
(1ltr)

Blue 24.00 34.00 37.00

Green 29.00 39.00 41.00

Orange 33.00 43.00 45.00

Magenta 23.00 33.00 34.00

Some Milk products price of aavin are listed below

Name Price

Amul Butter (100 gms): 40.00

Amul Cheese Slices (5 pieces pack)

67.00
:

Paneer (1 pack) : 85.00

Ghee ( 200 ml) 100.00

MILK PROCUREMENT
The milk production department collect the milk and the quantity and the below table
state the milk procurement District cooperative milk producers unions from the year
2010-2011 to 2017-2018. The average milk procurement per day in lakh litres

Average milk procurement per day (in lakh

Sl. No. Year
litres)

1 2010-2011 20.67
2 2011-2012 21.40
3 2012-2013 24.36
4 2013-2014 23.22
5 2014-2015 23.68
6 2015-2016 28.97
7 2016-2017 28.50
8 2017-2018 29.46
MILK SALE
The average milk sales during 2017-18 was 10.0 LLPD as against 9.52 LLPD in
2016-17 which is an increase in growth rate of 4.5%.
To increase the sales further, more concentrated marketing efforts are being taken up.
New marketing zones have also been created in 11 centres and it is planned to
increase milk sales in the District Unions to 10.50 LLPD during the year 2018-19.
An increase of 48000 litres of milk per day was achieved in the year 2017-18 comparing
with 2016-17.

MARKETING DEPARTMENT

The Marketing Department plays a vital role in promoting the business and mission
of an organization. It provides the necessary research to identify your target customers
and other audiences. Marketing department in aavin are very powerful help and more
efficient in their work. The marketing network of aavin fromm year 2013 to 2018

2013- 2014- 2015- 2016- 2017-

Sl.No. Infrastructure
14 15 16 17 18
Distribution
1 113 117 119 132 148
Routes
2 Zonal Offices 16 16 16 16 27
3 Milk Depots 470 470 433 437 441
4 Delivery Points 311 311 361 376 485
5 Parlours 93 93 114 147 221
Milk Whole Sale
6 47 71 71 83 84
Distributors
Milk Consumers,
7 Cooperative 49 49 49 49 49
Societies
Franchise
8 184 202 451 556 594
Outlets Retail
Products
9 Distribution 14 16 25 33 37
Routes
FINANCIAL MANGEMENT
Financial Management is a vital activity in any organization. It is the process of
planning, organizing, controlling and monitoring financial resources with a view to
achieve organizational goals and objectives. It is an ideal practice for controlling the
financial activities of an organization such as procurement of funds, utilization of funds,
accounting, payments, risk assessment and every other thing related to money.

The below table is for Profit and loss of federation and district union 2011-2018 (Rs in
crore)

Net
S. Sales
Year Profit Loss profit
No. Revenue
/ Loss
2011-
1 2652.00 -61.17 -61.17
12
2012-
2 3284.00 115.37 115.37
13
2013-
3 3518.00 136.18 136.18
14
2014-
4 3881.00 -45.38 -45.38
15
2015-
5 5139.00 -12.37 -12.37
16
2016-
6 5281.00 139.34 139.34
17
2017-
7 5478.00 46.52 46.52
18
-
Total 29233.00 437.41 318.49
118.92
Budget allocation for year 2011-2012 to 2018-2019

Allocation
Year
(Rs. in crore)
2011-2012 65.72
2012-2013 51.25
2013-2014 35.97
2014-2015 81.91
2015-2016 98.18
2016-2017 101.21
2017-2018 118.63
2018-2019 118.02

CONCLUSION
In review this internship has been an excellent and rewarding experience. We have
been able to meet and network with so many people that we are sure that they will be
able to help us with opportunities in the future. One main thing that we have learnt
through this internship is working skills as well as self-motivation. It taught us many
things like how should behave in company and also how to communicate with the
people in proper way.