Aarey MilkREPORT

Submitted To: mol Muley

Acknowledgement I would like to thank our Proff: Amol Muley

for giving me this opportunity to study about an organization process of a dairy Industry . His guidance and support through out the project was terrific.

IntroductionAarey Milk Colony was established in year 1949.

On 04.03.1951 Central Dairy, Aarey was inaugurated by auspicious hand of then Prime Minister of India Shri. Pandit Jawaharlal Nehru.

The Central Dairy, Aarey was constructed for processing and packing of milk which was collected from Aarey Milk Colony and to supply same to consumer of Mumbai city.

This Dairy is pioneer of it's kind in entire Asia. After 1970 milk produced in mofussil area was also received in this dairy. It distributes milk in Western Suburbs of Mumbai City.

Contd.In 1961 Aarey established a new dairy at Worli

seaface to meet the need of consumers in the Central and Southern part of Mumbai city.

Dairy has processing and packaging capacity of Rs.4.50 lakhs litres of milk handling per day. Milk product like Energee , Lassi, Dahi and Masala Milk are also daily manufactured in the plant.

In 1979 Aarey started processing , packing & distributing of Aarey ghee from the Mother dairy which is located at Kurla.

ObjectiveShifting of cattle / buffaloes from the

city limits. Supply of better quality milk to the

citizens of Mumbai at comparatively cheaper rate .

Maintenance of these animals on scientific and modern animal Husbandry practices.

Aarey Overview

Type Government Undertaking Founded in 1949 Headquaters Goregaon(E),Mumbai, India Industry Dairy Key people CEO, Dairy Incharge Products milk and related products Turnover 200 crores Employee 3000+

The Aarey ConceptCost effective production, including primarily,

procurement of milk from over two million diary farmers which, in turn assures poor farmers reasonable prices.

Climbing up in the value chain by diversifying into value added products, such as milk, sweets, confectionaries, truly as food company.

Sustained building up loyalty of customers, not by promoting individual products but all products under the umbrella of its premium brands.

Facilitating reach to customers throughout the state by a strong chain of distribution outlets.

Aarey’s StrengthAarey is not just in the business of

development; not just marketing. The spirit of development can be seen and felt in everything that they do. Marketing is simply their tool to achieve ultimate objective – Human Development.

Aarey is focused on delighting their customer by developing new new products to meet their expectations and delivering the best quality products at the lowest possible prices that they expect. This unflagging commitment to the consumer explains their marketing success.

Executive Summary

Anticipation (of customer needs),Planning (of products as per these

needs),Implementation (in terms of

promoting sales of such products) and finally

Control (of operations at every stage).

DEMING’S POINTS OF MANAGEMENT USED BY AAREYCreate constancy of the

improvement of product & Service.Adopts new strategy : Do not ask

their customer pay for their defects and delay’s.

Cease Dependency on mass inspection.

End the practice of awarding business on price tag alone.

Drive out the Fear.

Various ProductsMarked Milk Cow Milk Full Cream MilkTonned Milk Buffalo Milk

Energee Energee (200 ml.bott.) Coffee/ Chocolate  Energee  ( 200 ml.Bott.) Capuchinno/ Mocha  Energee (200 ml.Bott.) . Diet Energee( 200 ml. Bottle)

Shrikhand

Aarey Products

Contd.Long life Cow Milk  (250 Ml. Bott.)

Masala Milk Masala Milk  (200 Ml .Bott.) Special Masala Milk (200 Ml. Bott.)

Lassi Lassi Plain  Lassi Mango  Lassi Strawberry

DahiGheePeda 

Target Segment Per DayCow Milk : 95000 litersTonned Milk : 30000 litersSpecial Milk : 35000 litersEnergee :22000 bott.Masala Milk :1000 bott.Lassi :20000 bott.Ghee :1500 kg.Dahi : 500 cup

USPThe quality of milk is checked at the time of

reception & before sending the milk to packaging.

To check adulteration etc the government has modern laboratories with latest equipments like Cryoscope, Density meter, Chromatograph etc.

 The Composition of the product are tested at their on laboratories before manufacturing the product.

Product which are available at the stores are fresh and hygiene.

Sales Force StructureMilk Procurement Distribution

Officer

Assistant Milk Distribution Officer

Circle Inspector

Admin Staff

Dispatch Supervisor

Dispatcher West Zone

Assistant1

Assistant2

Dispatcher Central Zone

Assistant1

Assistant2

Dispatcher Eastern

Zone

Assistant1

Assistant2

Aarey Booth

Sales OutletsREGION GOVT.CE

NTREX DAIRES CENTRE

Z CENTRE

AAREY SARITAS

TOTAL

GMMS 2 652 2201 1197 4052NEW MUMBAI

0

34 318 6 358

PUNE 0 205 29 12 246NASHIK 0 46 16 1` 63AURANGABAD

0 95 64 20 176

AMARAVATI

0 199 21 1 221

NAGPUR 0 404 14 49 467TOTAL 2 1635 2663 1280 5586

Aarey’s Pricing StratigiesAt the time Aarey was formed, consumers had limited

purchasing power, and modest consumption levels of milk and other dairy products.

Aarey adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.

Despite competition in the high value dairy product segments from firms such as Amul, Mother Dairy GMMS ensures that the product mix and the sequence in which Aarey introduces its products is consistent.

with the core philosophy of providing milk at a basic, affordable price to appeal the common masses. This helped Aarey to create its brand image in the household sector of the society. 

RecruitmentsSince Aarey is a government organization

and all its rules and regulation are based on government philosophies, so its recruitment is also based on the government criteria.

It is done by a government organizing committee ‘Maharashtra Public Service’& ‘Staff Selection Service’.

The recruitment is based on the merit of caste reservation system .preferably it is for the schedule cast people.

TrainingThe Government takes the initiative to

trained the work force before letting them to work . It specializes all the workers in there domain and looks after it periodically.

It conducts training program every year specially for the workers who looks after the production process.

It also conducts training program for the top level employees once in a year.

Growth OpportunitiesSince Aarey is a government organization and

all its rules and regulation are based on government the growth opportunities are very less in this organization.

Promotion is done once in every 12 years for the employees at all levels.

If there are some retirement or vacancies then only the promotion is done on the basis of potential or merit.

They provide sitting promotion to employee after completing 12 years.

Direct ProcessManufactures the productSupplies the product by themselves at their

retail outlet No intermediaries involveSales directly to the consumers

MeetingsMeetings are held once in a week.It is lead by the dairy incharge Mr.P.K Rajput.Discussions which take place are about

production , sales , customer complains .Meetings are also held once in a month with

the dairy commissioner where an overview of the whole months performance is being presented .

People Power :Aarey’s secret of success

Produce an appropriate blend of the policy makers farmers board of management and the professionals each group appreciating its roles and limitations.

Bring at the command to the rural milk producers the best of the technology and harness its fruit for betterment. 

Provide a support system to the milk producers without disturbing the agro- economic system.

Plough back the profits, by prudent use of men, materials and machines, in the rural sector for the common good and betterment of the member producers.

Even though growing with time and on scale it has remained with the smallest producer members. In that sense Aarey is an example par excellence of an intervention for rural change.

Competition The rules ‘ of the game’ of the Indian Dairy

Industry have changed. Unless Aarey redefines its paradigms to meet the changing times, its risk being left behind. Since 1991, anybody and everybody has been free to enter the dairy industry and to reap benefit from the market that our federation created and nurtured with Aarey . Multinationals, backed by their surplus capital, are seeking a hefty share of milk and milk products. At the same time, regional private companies have been able to penetrate markets on the strengths of aggressive pricing made possible by cavalier treatment of taxation laws and quality standards. More recently, Government has even allowed free import of dairy products, leaving the door open of dairy open subsidized imports from advance dairying nations. The dynamics of the Indian dairy industry are now increasingly linked to the global dairy industry.

Any Questions

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