mother dairy

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Study Of Operation Management Issues In Mother Dairy Prepared By: Vipin Kumar, 63, MBA Hitesh Kumar, 21, MBA, Sumit Chaher, 55, MBA Dheeraj Yadav, 66, MBA


INTRODUCTION Mother Dairy was set up in 1974. It is a wholly owned subsidiary of National Dairy Development Board (NDDB) of India. Set up under the Operation Flood Programme. Currently it has largest milk processing plants in Asia selling over 25 lakhs litres of milk per day. Market share of 66% in branded sector in Delhi. Other important markets are Mumbai, Saurashtra and Hyderabad. It is an IS/ ISO-9002, IS-15000 HACCP and IS-14001 EMS certified organization. Mother Dairy, Delhi has been awarded ISO 9001:2000 (Quality Management Systems), HACCP, 2002 RvA (Food Safety Management Systems) and ISO 14001:2004 (Environmental Management Systems) Certifications.

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National Accreditation Board accredits its Quality Assurance Laboratory as per ISO/IEC 17025:1999 for Testing and Calibration Laboratories, Department of Science and Technology, Government of India. Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices. Range of products include: Mother Dairy milk products, Dhara range of edible oils, Safal (range of fresh fruits and vegetables, frozen vegetables, fruit juices).

National Dairy Development Board:

National Dairy Development Board NDDB is the National Dairy Development Board. It is an institution of national importance setup by an Act of Parliament of India in 1965. Dr. Amrita Patel is the current Chairman of the National Dairy Development Board, Anand. NDDB's subsidiaries include Mother Dairy, Delhi. The main office is located in Anand, Gujarat with regional offices throughout the country.

Major Dairy Cooperative Federations in India:

Major Dairy Cooperative Federations in India Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF) Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED) Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF) Haryana Dairy Development Cooperative Federation Ltd. (HDDCF) Himachal Pradesh State Cooperative Milk Producers' Federation Ltd (HPSCMPF) Karnataka Cooperative Milk Producers' Federation Ltd (KMF) Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF) Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF) Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)

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Orissa State Cooperative Milk Producers' Federation Ltd (OMFED) Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF) Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED) Rajasthan Cooperative Dairy Federation Ltd (RCDF) Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF) West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)


NDDB’s ROLE It is the central cooperative board of the country and was created to promote, finance and support producer-owned and controlled organizations that we have mentioned. Of these, two main players – Amul of GCMMF and Mother Dairy of NDDB – are the leading brand in India. It has now integrated 96,000 dairy co-operatives in what it calls the Anand Pattern, linking the village society to the state federations in a three-tier structure. NDDB launched its Perspective Plan 2010 with four thrust areas: Quality Assurance, Productivity Enhancement, Institution Building and National Information Network.

Mother Dairy’s Product Profile:

Mother Dairy’s Product Profile Product Name: Milk and its Products Brand Name: Mother Dairy Items: Packaged Milk (Full Cream, Standardised, Toned, Double Toned Skimmed and Pro-biotic), Butter, Dahi, Ghee, Cheese, Ice-Creams, UHT Milk, Lassi & Flavoured Milk.

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2. Product Name: Edible Oils Brand Name: Dhara Items: Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Refined Rice Bran Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. It has a popular range of edible oils in different types as refined soya bean oil, refined sunflower oil and filtered ground nut oil etc.

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3. Product Name: Fresh and frozen fruit and vegetable products Brand Name: Safal Items: Fruits, Vegetables, Rice, Processed items (jams, juices, ketchup, pulp, etc.)

Financial Status of Mother Dairy:

Financial Status of Mother Dairy Mother Dairy Foods Processing Ltd, also known as Mother Dairy Fruit & Vegetable Private Limited, Patparganj, Delhi, has a turnover of about $500 million. Mother Dairy’s turnover has been growing at the rate of 20% (CAGR) over the last 3 years and has crossed the Rs.2700 crores mark in the fiscal 2008-09. Mother Dairy plans to achieve a turnover of $1 billion USD by end of 2009.

Supply Chain Management:

Supply Chain Management Milk Procurement: Mother Dairy sources its requirement of liquid milk from dairy co-operatives and producer institutions. Milk is received from farmer cooperatives through insulated road/rail tankers at very low temperature in order to retain its freshness.

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Milk Distribution: 79 tankers in the morning and 75 tankers in the evening bring in milk from the regional collection centres. After collection the same tankers are utilized for the delivery of the processed milk to the vendors and outlets. Mother Dairy has over 820 Milk Distribution Outlets in the National Capital Region. Each of these outlets place their demand by raising an invoice one day in advance. The demand is also calculated using the “Calendar” Scheme, in this depending on the pre-calculated seasonal demands the outlets place their orders accordingly. In order to satisfy immediate demand, 20 to 25 tankers are provided with a buffer stock of 500 litres each day so that they can be mobilized to cater the demand in an area. To coordinate its operations all the tankers are equipped with HAM radios.

Milk Processing:

Milk Processing Milk Processing involves the following main steps: (i) Clarification (ii) Standardisation (iii) Homogenization (iv) Pasteurization

Quality Control:

Quality Control Stringent quality control methodologies are employed in Mother Dairy. The milk is tested for adulterations and quality at the time of collection from the farmers. The Milk that comes from the collection points to the Mother Dairy plant is ensured to have a temperature of not more than 7°C and is subjected to 15 product and quality checks. The Milk quality is checked repeatedly after each processing phase and the temperature is judiciously maintained less than 5°C always. Before the milk leaves the plant for the delivery/distribution outlets the milk is tested again.

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The temperature of milk in the delivery trucks is always maintained less than 7°C. All the trucks that deliver milk have specified guidelines to bring back 100 litres of milk after distribution. This is done in order to test the delivered milk and to ensure that the tankers are not adulterated during distribution. Since all the employed processing procedures are automated, no contamination by human hands takes place. To ensure milk freshness the collection and distribution points are always chosen such that the travel time between them is always less than 36 hours.

Market Strength:

Market Strength The company’s derives significant competitive advantage from its unique distribution network of bulk vending booths, retail outlets and mobile units. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 400+ own Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Fresh produce from the producers is handled at the Company’s modern distribution facility in Delhi with an annual capacity of 200,000 MT. An IQF facility with capacity of around 75 MT per day is also operational in Delhi.

Advertisement and Product Promotion Strategy:

Advertisement and Product Promotion Strategy It's trying to take its product campaigns and communications to a higher platform. It targets children and are created around ideas such as "The country needs you, grow faster". For products such as butter, cheese and ice creams go, the campaigns have been created around "taste". Since 60 per cent butter is consumed by kids, they have created Makkhan Singh , a cartoon character cow as its brand ambassador.

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Mother Dairy has been carrying out school programmes - games and activities – involving Makkhan Singh in Delhi. It also runs a gaming website on the character to attract children. Other activities like “ Cheese Khao Superhero Ban Jao ” has also been carried out at many retail outlets in NCR. It also organises various seminars for children from different schools, students from various colleges and even housewives to educate and increase awareness about milk and its products. All this is done by the Customer Information Department wherein consumers are made aware about goodness of milk, various stages of its processing, Q.A. practices and possible adulterants.

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Consumers can themselves see how impurities and adulterants can be easily detected in the laboratories. The company also has a Mobile Lab that tests milk in residential colonies. Various advertisements both in print and electronic media are flowed time to time on a regular basis.

Management System Policy:

Management System Policy Apply state of the art technology and processes to enhance productivity that ensures quality at competitive price. Apply processes for clean production, pollution prevention and optimize resource utilization in all operations. Follow food safety management system and apply HACCP (Hazard Analysis Critical Control Points) principles to provide safe products to customers. Comply with applicable regulations and legislations. Mother Dairy pledge to provide quality and safe products under clean and hygienic environment.

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The following steps are taken and ongoing efforts are continuously made as per "Management Systems Policy"- • Minimize Waste generation • Conservation of resources • Use of renewable energy • Recycling & re-use

Energy Management Policy:

Energy Management Policy Mother Dairy Food Processing Ltd. commit themselves for optimum utilization of energy in all manufacturing activities as well as in office by: Monitoring closely and controlling the consumption of various forms of energy through an effective Energy Management System. All round participation of all employees and educating them about energy conservation. Maximum utilization of renewable energy sources. Upgradation of processes, technology and use of energy efficient equipments. Optimum utilization of plant capacity. As a part of energy conservation and environment protection commitments, reduce the specific energy consumption.

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For Environmental Management, the following arrangement has been made: Solar Panels: Utilizes the solar energy to preheat the water going into the boilers. Rainwater Harvesting: for maintaining groundwater level it has installed the plant in the premises. Effluent Treatment Plant: The water used for cleaning the equipment and tankers is treated at the effluent plant in the dairy before being discharged into the sewage system.

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