15-11-2012, 12:20 PM
NAVALOOR DAIRY PRODUCTS HUBLI
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EXECUTIVE SUMMARY
India is the world’s highest milk producer and all set to become the world’s largest food factory. The milk industry in India is witnessing a stupendous growth. The production of liquid milk touched a high of 85 million tones in 2001-02 placing the industry first in the world.
NAVALOOR DAIRY PRODUCTS company was incorporate on 15 april 1995, situated in Hubli. The founder of a dairy is Mr.Anant.J.Navaloor. It is a private company in KARNATKA state. Navaloor Dairy Products is pioneer milk factory in Karnataka. The total area of industry is 3 acres. This plant handles about 25,000 liters of milk per day.
It has two companies in one is all carry Navaloor Dairy Proucts tag. It is mainly milk producing company where varieties of milk and product like Toned milk, Double toned milk, Standard Milk, Curd, Butter milk, Lassi, Cold Coffee, Ghee, Paneer, Chakka, khoa are producing.
The main motto of the company is increase in its sales. The Navaloor Dairy Products group believes that the excellence is the only bench mark hence it is always sought are obtained the very best technologies to ensure top class manufacturing.
INDUSTRY PROFILE
India is the world’s highest milk producer and all set to become the world’s largest food factory. The milk industry in India is witnessing a stupendous growth. The production of liquid milk touched a high of 85 million tones in 2001-02 placing the industry first in the world.
Since 1991, after liberalization, anybody and everybody have been free to enter the dairy industry and to reap benefit from the markets that Domestic federations created and nurtured with their sweat and blood. Multinationals, backed by their surplus capital, are seeking a hefty share of Indian milk and milk products market. At the same time, regional private companies have been able to penetrate markets on the strength of aggressive pricing made possible by cavalier treatement of taxation laws and quality standards.
Dairy is a place where handling of milk and milk product is done and technology refers to the application of scientific knowledge for practical purpose. Dairy technology has been defined as that branch of dairy science, which deals with the processing of milk and manufacturing of milk producing on an industrial scale.
GROWTH & DEVELOPMENT OF THE INDUSTRY
Until the 1940, there was very little published information on the method of preparation and use of these products. The credit for the first publication on the subject goes to Dr. W.B. Davis, the first director of the industry research, Indian Diary research Institutes (now National), Bangalore. Within the span of these four decades since his book appeared, considerable research has been places in indigenous Dairy products.
It is beyond doubt to mention that the organized dairy industry has done a splendid job by transforming itself from an import-dependent enterprise to self-sufficient industry and the embarking on export of various products. And, now it is poised for another wave of expansion of undertaking large-scale production of milk in the organized sector.
INTRODUCTION
Navaloor Dairy Products was set up by Mr. Anant .J. Navaloor, Managing director of NDP, to produce the best quality products which can hold their own position in the highly competitive national market and bring the benefit milk producers. The plant states the art of Technology, Equipments and Manufacturing process.
LOCATION
The plant is situated 10 km away from Hubli on Airport Road Dist –Dharwad (KARNATAKA). On the Hubli-Bangalore highway having a pollution free environment which helps to maintain its hygiene quality and a rich source of cows and buffaloes milk with a possibility of increasing its quality and handling , at present 25000 ltrs / day.
HISTORY
Before Indian economy opened up in 1992, Navaloor Dairy Products group opened the doors of the first private sector dairy in the state of Karnataka called Navaloor Dairy Products, in 1989 at a remote village of Devar Shigihalli, Baihongal District. This dairy initially engaged in procurement processing and distribution of raw milk in Goa State and Belgaum District of Karnataka. At the time when Navaloor Dairy Products, commenced its activities, the dairy sector was dominated by co-operative milk unions having substantial support from the state and central government with agencies engaged in promoting the said industry. It was not an easy task indeed to complete with mighty co-operative sector and sustain in the industry without any support. However, there has been no looking back ever since.
PRODUCTION
Production department ensures that the minimum stock of milks is maintained at processing and dispatch department as decided by General Manager – Dairy from time-to-time, which is dependent on sales and inflow trend.
On receipt of requirements from marketing, General Manager – Dairy shall plan for the day’s production and this shall be communicated to Production In charge’s.
PLANNING FOR PRODUCTION:
1. Production department ensures that the minimum stock of Milk is maintained at processing and dispatch department as decided by the General Manager – Dairy from time –to – time, which is dependent on sales and inflow trend.
2. On receipt of requirements from Marketing, General Manager – Dairy shall plan for the day’s production and this shall be communicated to Production In charge’s.
3. Production In charge / QA In charge discusses with the General Manger – Dairy in order to review the raw milk availability and adequacy. Where required General Manager – Dairy shall arrange for raw milk from any of the approved source.
4. General Manager – Dairy reviews the status of maintenance of production facilities for their impact on day’s required production. If required, they shall inform Marketing about the best possible production for the day to enable Marketing to inform the customers where dispatch could get affected substantially.
MILK PROCESS
First they will collect the milk. Then it is taken to organoleptic test (taste, colour, smell) and chemical test. Then it is taken to milk tank. Then process starts. Here firstly the milk is taken to grading some milk is taken to prepare paneer rest of the milk is taken to chilling process.
After chilling process it is under taken to pasteurization. Later fermentation process will continue. During pasteurization the cream will be separated. Cream is converted into butter and ghee. After fermentation curd, mango lassi, buttermilk is produced.
Some amount of grading milk is converted into khoa and pedha by evaporation process.
Finance/Account department
In this department the financial accounts of the company and transactions are properly maintained. Most of the accounting work is done on the computers is maintain accuracy of the accounts. The accounting procedure is based on the usual accounting principles. The day book with cash and bank columns are maintained. They also maintained the journal, ledger and subsidiary books.
Closing the accounts is done on 31st march every year. At the end of the accounting period trading account, profit and loss account balance sheet is prepared to ascertain the profit or loss made by the company in the particular year. The final accounting reports are submitted to the management. The company auditors do finance auditing.
Objectives of financial management:
Financial management provides a framework for selecting a course of action and deciding an economically viable stratify.
The main objective of a business is to maximize the owner’s welfare. This objective can be achieved by-
Wealth maximizations:
Wealth maximization is the appropriate objective for an enterprise. Financial theory assets wealth maximization is the single substitute for the stockholders utility. The concept of wealth maximization tells the value of assets in terms of benefits it can produce. Any financial action can be judged in items of benefits it produces then the cost of action, this concept is based on the cash flows generated in the business. The concept of wealth maximization universally accepted in financial decision – making. If a financial decisions results in more cash inflows than outflows than the project is considered viable.
While pursuing the objective of wealth maximization al efforts must be put in for maximizing the current present value of any particular course of action. Every financial decision should be based on cost benefits analysis. There is rational in applying wealth maximization policy is an operating financial management policy. It services the interest of the suppliers of loan capital, employee’s management and society.
Profit maximization:
Profit earning is the primary concern of every economic activity. A business being an economic institution is supposed to profits to cover its cost and provide funds for growth. Profit is the measure of the efficiency of a business enterprise. It also serves as a protection against uncertain risk. It is remuneration for innovation. The survival of the firm depends upon it ability to earn profits. But from the experience it is learnt that concept of maximization is a myth.
1). Gross working capital:
Refer to the firm’s investment in current assets. Current assets are the assets, which can be concerned into and within an accounting year (or operating cycle) & include cash, short-term securities, debtors (accounts receivables or book debts) bills receivable and stock (inventory). Gross working capital points to the arranging of funds to finance current assets.
2). Net working capital:
Refer to the difference between current assets and current liabilities. Current which are those claims of outsiders, which are expected to nature for payment within accounting years and include creditors (accounts payable), bill’s payable and outstanding expenses. Networking capital can be positive or negative. A positive net working capital will arise when current assets exceed current liabilities and a negative working capital will arise when current liabilities are in excess of current assets.
The need or objectives of working capital:
The need for working capital to run day - to - day business activities cannot be overemphasized. We will hardly find a business firm, which doesn’t require any amount of working capital. Indeed, firms differ in their requirements of the working capital. We know that a firm should aim at maximizing the wealth of its share holders. In its endeavor to do so, a firm should earn sufficient return from its operations. Earning a study amount of profit required successful sale activity. The firm has to invest enough funds in current assets for cash instinctually. There is always an operation cycle involved in the conversation of sales into cash.