A REPORT

ON
SUMUL DAIRY, SURAT
(Surat District Co-operative Milk Producers’
Union Ltd.)
A study on Production, Finance,
Marketing and HR practices.
Prepared by: Hitesh Patel
Prepared for: PGDM(HR)
Programme
Sinhgad Business
School,Pune
ACKNOWLEDGEMENT

I take this opportunity to express my heartfelt gratitude to Mr. Jayesh Desai,

Managing director,Sumul Dairy and Mr. Babulalbhai Patel(Human resource) for
allowing me to undertake my training at Sumul Dairy and for their guidance.

I am thankful to Mr. Patel (Accounts Department) for providing me with the

necessary information whenever required.

I am thankful to [Link] for giving us this great opportunity to

actually see how organizations function towards the achievement of their goals
and objectives.

I am also thankful to all those members of Sumul Dairy, Surat who gave me
constant encouragement and guidance during the entire project and Last but
not least, I would like to thank my friend co-trainee students who directly or
indirectly helped me in the hour of need in the preparation of this project
report.
 INDEX
I. AN INTRODUCTION TO SUMUL DAIRY:

• Introduction
• Company Overview
• History
• Sumul’s mission & vision statement
• Objectives of Sumul
• Quality Policy
• Environment Policy
• Work area of Sumul
• Units of Sumul and Their Capacity

II. AN INTRODUCTION TO THE PRODUCTS OF SUMUL:

• An overview of Sumul’s products

• Milk & its nutritive value
• Milk intake & milk-intake in different forms
• Types of milk
• Sales volume
• Growth path of Sumul products

III. A STUDY ON HUMAN RESOURCE MANAGEMENT OF SUMUL:

• Hierarchy of HR department
• About the Personnel Management
• HR Objective
• Role of HR in Sumul
• HR activities
• Facilities provided to the employees
• Recruitment & Selection process
• Training & Development system
• Motivation Programmes for the agents
• Performance appraisal system
• Promotion & Transfer policy
• Wage & Salary structure
• General information related to the HR department
• Personnel Information System & Pay-roll Accounting System
 AN
INTRODUCTION
TO
SUMUL DAIRY
(Surat District Co-operative Milk Producer’s Union LTD.)

CONTENTS:

• Introduction
• Company Overview
• History
• Sumul’s mission & vision statement
• Objectives of Sumul
• Quality Policy
• Environment Policy
• Work area of Sumul
• Units of Sumul and Their Capacity

• Introduction

The Sumul district Co-operative milk producer’s union ltd. (SUMUL

dairy) is a co-operative endeavor committed to help marginal farmers
and down trodden tribal people to lead to a healthy life and better
standard of living through scientific animal husbandry practices. Today’s
Sumul enjoys the pride to serve milk and milk products to populous
Surat city and surrounding towns of it.

Sumul holds strong brand equity in Surat district and command more
than 70% of the liquid milk in Surat city, to make the distribution system
fast and to deliver milk in time they have as many as milk transportation
routes and 1531 agents (1386 regular and 145 full time)
 The area of operation of Sumul is the entire district of Sumul. The
present milk procurement of 160.929,736 liters of milk annually makes it
the third largest union in the state after the AMUL and Mahesana dairy.
The present market of Surat for liquid milk is around 4.5 lakh liters per
day. This has necessary active development of “by-product” market.
Products so far introduced are paneer, ghee, flavored milk, Shrikhand,
sweet, lassi, butter-milk etc.

Sumul consists of 13 Board of directors, one each of 13 talukas of

Surat district and these boards of directors from themselves elect the
chairman. The total number of employees is 1100 besides the contract
workers.

Under Sumul’s activities, Surat district is now firmly established as a

milk shed and is growing from strength to strength.

Hence, Surat district co-operative milk producer’s union ltd, SUMUL

is trade name and literally meaning sound process, came in to existence
on august 22, 1951….The formal commissioning of the pasteurization
plant on March 17,1968 was a turning point from Sumul.

COMPANY OVERVIEW

Name : Surat District Milk Producers’ Union Ltd. (SUMUL)

Address : Surat District Milk Producer’ Union Ltd.

Post Box No.-501,
Sumul Dairy,
Surat- 395008
PH: 2427691-94, 2422137, 2418717, 2418666
Fax: +91-261-2433572
E-mail:

Owner : [Link]

Milk Chilling Plants along with capacity of Milk Chilling:

Bajipura 3, 00,000 Ltrs per Day

Uchchhal 1, 00,000 Ltrs. per Day
Navi Pardi 2, 00,000 Ltrs. per Day
Chasvad 30,000 Ltrs. per Day
Dediapada 30,000 Ltrs. per Day
No. of Milk Producers Co-op.: 956

Total membership and Nos. of Primary Milk Producers'

Cooperatives. :
 Category of the Number of Membershi
society societies ps
Tribal 898 171502
Non-tribal 79 32703

Milk Cooperatives Managed by women: 81

No. of Mobile Veterinary Clinics: 22

No. of Veterinarians: 40

No. of A.I. Centers: 130

Cattle feed Mixing Plant capacity: 300 Mts. per day

Mineral Mixture Plant: Production and sale: 45000 packets for Milk
Producers
• History:-

Sumul or Surat Milk Union Limited, which is now renamed as The

Surat District Co-operative Milk Union Ltd, is one among the 12
district unions which acts as manufacturing unit of dairy products for
Gujarat Co-operative Milk Marketing Federation Limited, the
marketers of Amul and Dhara brand of products.

Surat District has been a Pioneer in India in channelizing trade in

Cotton and Milk through co-operatives. Before SUMUL stepped in,
traditional Private Milk Traders were dominant in the area.
The private trade was monopolizing the Milk market and exploiting
both the Milk Producers and Consumers alike. The milk procurement
price which used to be fixed by the traders (traditional Bhatias) was
very low and was fluctuating from time to time at their sole
discretion. These middlemen have capitalized on the absence of any
infrastructure and processing facilities and have managed to keep
producers from deriving equitable benefits from the marketable
surplus generated. As such their income from milk was very low and
they had no incentive for modern dairy farming. The farmers
resented the system, but were helpless in the face of these
traditional constraints and to their own lack of resources.

Dairying on the other hand, was never popular with tribal people
(a major rural population in the District) as practically no
infrastructure existed for milk marketing in their talukas,
inaccessibility to their villages as well as taboos regarding keeping of
buffaloes prevented the entire population of tribal people from
considering dairying as a source of income. The tribals kept their
cows to produce bullocks rather than milk, which was insufficient
even to nurse the calves. Most of the tribal people were unaware of
the usual milch breeds, what to say about Scientific Animal
Husbandry?

Hygienic and pure milk was almost unknown in the market. In

fact unbridled adulteration of milk was practiced by these traders to
meet the growing demand of milk in the city. To salvage the poor
producers from the clutches of these Private Traders, Organization
and integration of procurement, processing and marketing of milk
and milk products by the producers themselves on a sound co.
operative line was essential; this would also ensure elimination of
middlemen, equitable distribution of benefits to Rural Milk Producers
and indirectly to urban milk consumers as well.
Hence, the Surat District Co. operative Milk Producers'
Union Ltd., SUMUL is trade name and literally meaning sound price,
came into existence on August 22, 1951, with the joint untiring and
dedicated efforts of Veteran Leaders of Co-operative Movement. Shri
Ashabhai S. Patel became the first Chairman.
• The society was registered on August 22, 1951 under the Bombay
Co-operative Societies Act, 1925.
 • Sumul’s Mission & Vision Statement

“WE ARE SOCIALLY RESPONSIBLE ORGANISATION WITH

COMMITMENT TO CONSUMER DELIGHT AND RESPECT FOR ALL. WE
BELIEVE IN GROWTH AND CONTINUOUS IMPROVEMENT THROUGH
TEAMWORK, TRUST & EXCELLENCE WITHOUT COMPROMISING OUR
HONESTY AND INTEGRITY”

It is a statement of what business we are in and sometime our

ranking in what business has also the competitive advantage that we
want to have over the others. It is quite obvious from the mission
statement of Sumul that the organization is committed to customer
satisfaction and believes in providing the highest quality of product to
them. In fact, for ensuring highest quality product, it has already put into
practice TPM and TQM tools in the organization besides many Quality
Circle (QC) and Small Group Activity (SGA) operating in the organization
to achieve the vision and mission.
To achieve its vision & mission, Sumul has-

1. To identify the best practices, provide training to all operators and

standardize equipment operation.
2. To identify willing people to start with and provide to them the
knowledge acquired from the practices.
3. To eliminate waste and reduce delays by adapting innovative ideas.
4. To encourage excelling SGA and recognizing them to achieve every
employee’s participation.
 SUMUL VISION 2006:

Vision is a dream created in our working hours of the organization.

It can be described as a “living picture of future”. It is inspired by the
values that we cherish

Year 2005 Year 2006

TURNOVER RS.551 Corers RS. 522 Corers
MILK 7,51,000 Liters 8,50,000 Liters
PROCUREMENT
MILK SALE 5,51,000 Liters 5,51,000 Liters
QUALITY International std. ISO International std. ISO
9000 HAACCP 9000 HAACCP
PRODUCTION COST Minimum Production Minimum Production
cost cost
DISTRIBUTION Consumers oriented, Consumers oriented,
SYSTEM Quick and effective Quick and effective

• OBJECTIVES OF THE SUMUL DAIRY

The Sumul Dairy was established with the following objectives:

 To provide guaranteed remunerative milk market round the year for

surplus milk.
 To provide maximum return to producers
 To Provide good quality Milk and Milk Product to consumers
 To increase milk productivity at most economic rate by providing
technical input services to the producers.

FUTURE OBJECTIVES OF SUMUL: -

 The Sumul Dairy shall provide proper Nutrition and Good Health to its
customers in addition to achieving customer delight.

TECHNIQUES EMPLOYED FOR REALZATION OBJECTIVES: -

The underlying principles of the techniques being employed to realize

the objectives are listed as under:
To increase the milk production potential and productivity in the milch
bovine population of the milk shed area at economic costs by bringing a
positive change in:
 Genetic structure of milch animals by implementing accepted
Breeding Plans/Policies (selective breeding in buffaloes and cross-
breeding in cows using Pedigreed Jersey OR H.F. Bulls semen) and by
timely and effectively breeding them with due follow-up to bring
down the long dry periods within the desired limits.

 Composition of feed, fodder and their availability as per the

requirement of various categories of animals.

 Management of animals for exploiting they’re full potential of

productivity at economic rates.

 Milk procurement practices, speedily, efficiently and economically

with least source of milk.

 Milk handling processing & conversion as per the concept of modern

dairying.

 Milk marketing, packing, transport and retailing system to meet the

consumers' demands effectively, economically and efficiently with no
undue accumulation of milk and milk products.

 Management of Union at the district level and societies at the village

level most efficiently and on sound co-operative lines, keeping the
overhead expenditure within the prescribed limits and also maintain
the status of Audit Classification "A" on a continued basis, under the
continuous and concurrent audit system.

QUALITY POLICY:

“WE AT SUMUL DAIRY, ARE DEVOTED, DEDICATED AND

MOTIVATED WORKFORCE TRAINED
TO ENSURE CONSISTENT SUPPLY OF GOOD QUALITY AND SAFE MILK
AND MILK PRODUCTS TO ACHIEVE HIGHEST LEVEL OF CUSTOMER
SATISFACTION.
WE WILL ACHIEVE THIS BY MONITORING AND UPGRADATION OF
PROCEDURES AND PROCESS APPLYING SCIENTIFIC INNOVATIONS
AND STATE OF THE ART TECHNOLOGY AND REMAIN
ECOFRIENDLY.”

• Objectives of the Quality Policy:-

->To procure clean and good quality milk and to ensure timely and
consistent supply to union.

->To ensure maximum production of milk by utilizing the state of art

services like artificial insemination from trained and qualified personnel
of the union.

->To ensure economical and social development of producers by

maximizing the return.

->To maximize the number of woman producer member by remaining

united with the sprit of cooperation.

TOTAL QUALITY MANAGEMENT:

Union has adopted International Standards for Quality Management.

QAS Australia has certified our quality management systems by issuing
ISO 9002, ISO-14001 and H.A.C.C.P. Certificates. By adopting quality
management system, Sumul Dairy’s Union has standardized all process
and procedure system for production of milk and milk products. As
usual, it is easy to design system but difficult to implement it. But with
active Participation and dedication of our workers and staff & with better
leadership & guidance of Board of Directors, Officers, Continuous
training programs under TPM and GMP, we have successfully
Implemented ISO Standards. At every six months interval, Total Quality
Management System has to be audited and if found proper as per
standard Quality Management norms then certifications are renewed.
Sumul has received continuous renewals.

INTERNATIONAL I.S.O - 14001 CERTIFICATION FOR

ENVIRONMENT CONTROL.

Accreditation of ISO 14001 certificate is a testimony of our

commitment towards our customers for 100% quality safe milk and milk
products. By complying with Terms and Conditions of ISO 9002, ISO
14001, HACCP, Quality Management and Environment Control, Union
has undertaken various measures for fully automation in their various
production lines; installation of Automatic Machinery in various
production lines is in progress.

QUALITY & ORGANISATIONAL FOCUS

Sumul is doing value addition at each stage in terms of

Improving raw milk quality, controlling microbiological growth &
Improving Product shelf life by-

 Coordination between CD Development Dept, Chilling Centers,

Marketing, Production & QC
 Undertaking activities like - Clarification, Pasteurization,
Standardization, Bacteriological Testing etc Process
Reengineering undertaken
 for optimizing process & storage temperature
 Reduction in Material Handling during manufacturing process &
usage of SS Pipelines & Equipment. Technological upgrading of
equipment's by incorporating state of art technology & Automation in
certain areas
 CIP through Centralized CIP unit supported by Manual Scrubbing of
Pipelines & Tanks etc.
 Improving MBRT at all levels
By the adherence to Standards
 PFA, W&M & NDDB
 ISO 9002 / HACCP & 14001
By Improving Good Manufacturing Practices Implemented
TQM, KAZIEN, SQC & TPM concept at all stages.
 Increased Overall Equipment Efficiency (OEE)
 Reduction in Machine Down Time
 Increase in Preventive Maintenance
 Reduction in Leakage, Quality Rejection & Reprocessing
 Availability of Maintenance Personnel at Floor
 Multi skill development
 Reduction in Utility Consumption
By implementing computerization at each level, Centralized
Oracle based Data Management System for all activities for
sharing information & analyzing it whenever required.
Employees Development
 Training on Personality Development
 Training on Self Management Leadership (SML)
 Training on Quality Concepts
 Total Quality Management (TQM), Quality Circle, Small
Group Activities, Kaizen, Statistical Quality Control (SQC)
 Total Productive Maintenance (TPM)
 ISO 9000 / HACCP & ISO 14001

• ENVIRONMENT POLICY

Surat District Co-operative Milk Producers Union Ltd., is engaged in

manufacturing of Milk and Milk Products and Marketing it within Surat
District under “SUMUL” brand and outside Surat district under the brand
of “AMUL “ or “Sagar”. We are conscious and committed to protect and
preserve the environment.

The guiding principles of our Environmental Policy are as

follows:-

1. Comply with all applicable environmental legislation, regulations and

other requirements
2. Control Plant operations to conserve natural resources such as water,
electricity and fuel and prevent pollution
3. Promote greening of Earth in and around our manufacturing complex
4. Minimizing generation of waste / effluents.
5. Continual improvement of our environmental performance Creating
awareness towards environmental issues among suppliers and stake
holders.

• Work Area of SUMUL

 Main Dairy Plant (Taluka/ Tahsil Name) Chilling Center (km
distance from Surat)

Cattle Feed
Factory

SUMUL dairy is located near railway station road in Surat. It

covers 15,000 – acre land. Sumul provides milk collection facilities at the
producer’s door in each village co-operative society, where milk is speedily,
efficiently and economically transported twice a day to its dairy plant and
chilling centers for processing and marketing.

Since the milk procurement system has been extended far and wide
in the entire district. Sumul have 5 chilling center at Bajipura, Uchchhal,
Navi Pardi, Chaved and Dediapada site at a distance of 50,105,25,110,146
km respectively from Surat city. The chilled is then transferred to the mail
plant at Surat railway station road.

• Units of SUMUL & Their Capacity

No. Chilling Establishm Capacity in Distance

 Center ent LPD from
Surat (km )
1 Sumul dairy 1951 500000 0
2 Bajipura 1975 300000 50
3 Uchchhal 1982 100000 105
4 Navi Pardi 1996 200000 25
5 Sumuldan 1970 300 mt/day 20

These 5 chilling centers have been provided with equal

opportunities of milk marketing to the distantly inhabited tribal milk
producers, which aids the economy of their milk production enterprise or
else they would have been obliged to dispose of their milk to the
middlemen at very low price. These chilling centers were established
with a view to improve the quality of milk and ease pressure at its
headquarters. A large plot of area was bought while establishing Navi
Pardi Chilling Center keeping in mind to shift the dairy plant from city, if
the need arises in future.

An
INTRODUCTION
To
“The Products of Sumul”
CONTENTS:

• An overview of Sumul’s products

• Milk & its nutritive value
• Milk intake & milk-intake in different forms
• Types of milk
• Product mix of Sumul dairy
• Types of Products & their recipes
• Sales volume
• Growth path of Sumul products
 PRODUCTS OF SU

•Only Three Products

PRODUCTS OF S

• AN OVERVIEW OF SUMUL PRODUCTS:-

Milk Products:
 Milk is the main product, produced by SUMUL Dairy. Milk acts as a
raw material for the other products of Sumul like curd, butter milk,
paneer, etc. Sumul processes variety of milks such as whole milk, toned
milk, cow milk, etc because the demand of milk differs from customer to
customer. Sumul tries to fulfill all the demands .e.g. people who want
‘Malai’, purchases whole milk whereas the standardized milk is used for
tea.

A white or yellowish fluid secreted by the mammary gland of animals. It

consists of emulsion of fat in water with casein and other proteins, milk
sugar and inorganic salts. The solids other that fat include protein,
carbohydrates, water-soluble, vitamins and minerals.

MILK

FAT SNF

VITAMIN PROTEIN
A MINERALS
D CALCIUM
E IRON
K LECTORS

According to the prevention of food adulteration rules 1995,the

percentage of milk, fat and SNF in different classes and designation of
milk specified respectively are as follow: Buffalo milk (5%-6% and 9%),
cow milk (3%-4% and 8.5%) recombined milk (3% and 8.5%) double
toned milk (1.5%-9%) and skimmed milk (not more than 0.5% and 8.7%)
the fat percentage for the milk of Cow and Buffalo varies from state to
state and is detailed is DFA rules.

• MILK & ITS NUTRITIVE VALUE:-

Milk may be defined as the normal secretion of the mammary

glands of females for the nourishment of their young off-spring. Milk
is a white opaque liquid and it is supposed to have a typical, clean,
 slightly sweet taste and should have a clean smell. Milk secreted
for a few days after parturition and characterized by high proteins
and immune body content is called colostrums which is ideal and a
must for the overall growth of the young off-spring. From a nutritive
stand point, milk is defined as the most nearly ‘perfect food’. It
supplies more of essential nutrients in significant amount than any
other single food.

Breast milk is different in its composition from cow's milk. It has

higher lactose content and lower protein content

TYPE OF MILK % FAT % PROTEIN % LACTOSE % ASH % BIOWATER

HUMAN 3.8 1.0 7.0 0.2 88.0
COW 4.0 3.4 4.8 0.7 87.0
BUFFALOE 7.4 3.6 5.5 0.8 82.1
CAMEL 4.5 3.6 5.0 0.7 86.2
HORSE 1.9 2.5 6.2 0.5 88.9
GOAT 4.5 2.9 4.1 0.8 88.7
SHEEP 7.3 5.5 6.1 0.4 80.7
WHALE 19.6 9.5 0.0 1.0 69.9
ELEPHANT 19.6 3.1 8.8 0.7 67.8

FODD CARBO PHOS VITAMINS

WAT PROT FA AS CALCI IRO
TYPE ENER HYDRA PHORO
ER EIN T H UM N A B1 B NIA C
GY TE US 2 CIN
m m
% k,CAL % % % % mg mg mg I.U. mg mg
g g
.
3. 16
MILK 87 68 3.5 4.9 0.7 118 93 0.1 .04 1 .1 1
9 0
7
SKIMMI 0. Tra . .1
90.5 36 3.5 5.1 0.8 123 97 0.1 .04 1 .1
LK 1 ce
8
.
81 33 Tra
BUTTER 15.5 716 0.6 0.4 2.5 20 16 0.0 0 .1 0
.0 00 ce
1
.
32 14 Tra
CHEESE 37 398 25 2.1 3.7 725 495 1.0 .02 4 (0)
.2 00 ce
2
.
ICECRE 12 52
62.1 207 4.0 20.6 0.8 123 99 0.1 .04 1 .1 1
AM .5 0
9

• MILK INTAKE:

Preschool Children (3-6 yrs.) 750mL

Elementary School
(6-12yrs.) 625mL
Children
Adolescent (13-19yrs.) 500mL
Adults (Above 19yrs.) 500mL

1 Glass of milk= 250g of curd= 45g of paneer

• MILK INTAKE IN DIFFERENT FORMS:

Milk 1 glass 250mL

Curd 1 bowl 100g
curd as raita 75g

Paneer as curry 60-80g

as curry with pea/other
30-40g
vegetable

• Types of Milks:

Name FAT (%) SNF (%)

Whole Milk 6 9
Toned Milk 3 9
Cow Milk 3.5 8.8
Skim Milk 0.07 9.3
ESL Milk ----- -----
Standardize Milk 4.5 9
Buffalo Milk 5.5 9
PSM 4.7 8.8
Sumulya 6.2 9.1

• Growth path of SUMUL products:

Products Year
Milk distribution in bottle 3-5-1968
Establishing member of GCMMF 9-7-1973
Milk distribution in polybag 7-12-1978
Butter milk distribution in polybag 1-6-1987
Whole milk (SUMUL YA) in bulk 1987-88
Whole milk (SUMUL YA) in 500 ml 1991
Homogenized toned milk in 500 ml 1994
Homogenized toned milk in 200 ml 1995
Flavor milk 1993
 Paneer 1994
Sweets 1994
Shrikhand 1995
Masala Chhas 15-8-1999
Flavored milk in 200 ml pouch 15-8-1999
Pasteurized milk in 5 liter pack 1998
Masala Chhas, methi Chhas 2000
Pizza & Ice-cream 2001
Rasgulla, Gulab Jamun,Sugar & Cow milk 2002
Tea 2003
Glabletop Packing for Milk (Plane & Flavored) 2004
Buttermilk in ESL Packing 2005
Cold Coco 2005

ORGANIZATIONAL STRUCTUREOF SUMUL

 Chairman

• NUMBER OF DEPARTMENTS:-

There are 10 departments at Sumul, they are as follows.

1. HR department,
2. Finance department,
3. Sales & Marketing department,
 4. Veternity Department,
5. Production & Engineering Department,
6. Accounts Department & Audit Section,
7. Assembling Department,
8. Quality Department,
9. Store & Purchase Department,
10. Information Technology Department.

A STUDY
ON
HUMAN RESOURCE DEPARTMENT
OF
Sumul

CONTENTS:

• Hierarchy of HR department
• About the Personnel Management
• HR Objective
• Role of HR in Sumul
• HR activities
• Facilities provided to the employees
• Recruitment & Selection process
• Training & Development system
• Motivation Programmes for the agents
• Performance appraisal system
• Promotion & Transfer policy
• Wage & Salary structure
• General information related to the HR department
• Personnel Information System & Pay-roll Accounting System
 • Hierarchy of Organization:-

Board of Director

Chairman

Managing Director

Senior Executive Officer

Junior Executive Officer

Senior Assistant

Junior Assistant

Technician

Workman

• About The Personnel Management:-

 Personnel department is the key department of any business. It
is the work force of any organization, which becomes liable for
company’s success or failure. Personnel management is that part of
management, which is concerned with people at work and with their
relationship within an enterprise. Its aim is, to bring and develop into an
effective organization. The men and women who make up an enterprise
and having regard for the well being of individual & of working groups to
working groups to enable them to make their best contribution to its
success.

The meaning of the personnel dept., labour management or staff

management means quite simply the task of dealing with human
relationship within an organization.

Personnel management is a continuous process. Personnel

management is a never-ending process. It helps in achieving objectives
of company. This is done by proper performance of personnel function
like recruitment, selection, training & development, labour activity,
motivation, welfare etc. it also helps to keep a smooth relationship
between employers & employees.

Sumul believes that the most significant resource is its Human

Resource and Sumul’s Success in the long run depends very much on
the quality of its human resource. Human resource comprise the
aggregate of employee attributes including knowledge, skill, experience
and health, which are presently available to the organization for the
achievement of its goal, objectives and service to the society.

• HR Objectives :

 To develop and sustain core values.

 To develop business leaders of tomorrow.
 To provide job contentment through empowerment,
accountability and responsibility.
  To build and upgrade competency through virtual
learning, opportunities for growth and providing challenge in the
job.
 To foster a climate of creativity, innovation and
enthusiasm.
 To enhance the quality of life of employees and their
family.

• Role of HR in SUMUL :

 Alignment of HR vision with Corporate Vision

 Shift from support group to strategic in business
operations
 HR as a change agent.
 Enhance productivity and performance by developing
employee competency and potential.
 Developing professional attitude and approach
 Developing ‘Global Managers’ for tomorrow to ensure
the role of global players.

• Human Resources Activities:

The main activities of this department are selection, training,

recruitment, and welfare actives.

To diffuse the effect of Global Competition, Sumul has adopted the

latest concepts of management practices and provided appropriate
training with the help of leading institute from time to time for up-
gradation & development of its Human Resource. Some of the efforts
of Sumul to achieve this are:

Employee Personality Development (Attitude, skill & 199

Knowledge) 5
Self Development (Self management Leadership, 199
Meditation) 5
Total Quality Management, QC, SGA, Kaizen, SQC 199
6
Total Productive Maintenance 199
9
Meditation Hall 200
0

• Facilities provided to the workers:

1. Washing facilities:
The facility for washing clothes is provided to all the
employees.

2. Storage & Drying facility:

The full time workers are given personal lockers to
store their things and also facility for drying clothes.

3. Canteen facility:
Canteen facility is provided to employee to take Break-
fast, Lunch and Dinner at economic price.

4. Rest room is also provided to take rest during the Lunch

hours.

1. First aid facility is given for quick remedy of employees,

when any accident occurs during the working hours of the
organization.

2. Vehicle parking space is provided for employee, worker and

visitors separately.
 3. Accommodation:
Organization has provided township & accommodation
facilities to employees.

4. Vehicle loan is given to Employee / Executive only.

5. Department stores:
“KAMDHENU” department store is in the staff ready
credit society / Staff Quarters to purchase all necessary
items at economic rate for employee.

10. Uniforms, Shoes and Raincoats:

Uniforms, Shoes and Raincoats are provided to all
employees and workers.

11. House rent recovery:

House rent recovery for those employees who live in
rental house.

• Recruitment & Selection Process:

Recruitment:

Sumul as such does not have a well-defined recruitment policy.

Recruitment is basically done by HRD department in consultation with
the concerned department for which new employee is required. It is not
a regular event as recruitment is done only when there is any vacancy
or some requirement comes up in the organization. All the new
employees must meet the minimum experience and qualification
criteria as set by personnel department.

Recruitment Process:

 HR Department receives requisitions.

 Locating and developing the sources of required number and
type of employees.
 Identifying the prospective employee.
 Communicating the information.

Generally, two types of SOURCES are used in the Organization:

1. Internal sources
It is generally done through promotion and training
programs.
2. External sources
 Direct Personal Interview:
By giving advertisements in the newspapers
 Employment exchange:
These agencies are providing a wide range of
services, counseling assistance in getting jobs,
information about the labour market and labour wage
rates.
 Campus interview.
 Advertisement.

• Selection Process:

The Selection Process is concerned with determining whether an

applicant meets with all the qualification need to perform a particular
job. It means right person a right place. It is very important because of a
wrong person is selected it will cost to the company. Need of selection
would be arise when vacancies are made in organization. Procedure for
selection differs from organization to organization and from job to job.

For Executives:

 Written Test
- Aptitude test
- Subject test
 Group Discussion
 Interview
 Final selection

For Non-Executives:
  Written Test
 Final interview
 Final selection

• Training and Development System:

“To bridge the gap between job requirements and present

competence of an employee”

Need for Training:

1. Job Requirements.
2. Technological Changes.
3. Organizational Viability.
4. Internal Mobility
5. Organizational Viability.
6. Internal Mobility

Training is given in 3 Categories-

1. Management Training.
2. Office Training
3. Senior Executive Training

The management training is given for 6 months. Officers and

senior Executives attend the management development
programmed organized by the institute. Training is not uncommon
in Sumul. It has an elaborate training program to make employees
acquire new skills and knowledge. Both internal and external
training is carried out as and when required. Following are the
data of internal and external training programmed conducted by
Sumul in the last five years.

The management training is given for 6 months. Officers and

senior Executives attend the management development
programmed organized by the institute. Training is not uncommon
in Sumul. It has an elaborate training program to make employees
acquire new skills and knowledge. Both internal and external
training is carried out as and when required. Following are the
data of internal and external training programmed conducted by
Sumul in the last five years.

Number of Training Programs

Programs 2001- 2000- 1999- 1998- 1997-
02 01 00 99 98

No. of in-house 144 53 20 - -

Programs
No. of Participants 1762 628 415 - -
No. of External 9 9 14 16 22
Programs
No. of Participants 55 31 43 55 57
Total Programs 153 62 34 16 22
Total Participants 1817 859 458 55 57

In addition to this, Sumul also has the policy to sponsor employees

for higher education to various institutes. The following table shows the
number of employees sponsored by Sumul.

No. of Employees sponsored for higher studies

Particulars 2001- 2000- 1999- 1998- 19997-

02 01 00 99 98
Employees 2 2 1 - -
Sponsored for
Advance continu
Study e

• Motivation Programme for the agents:-

Agents are front soldiers in the market, so keeping them

motivated is very essential. In this regard the union has planned to
conduct several programs regularly, such as
• Arranging agents meeting area wise in heir area itself to
understand their problem.
• Half yearly general meetings of all agents in dairy.
• Performance based award system.
• Recognition of regular agents.
 • Arrangement of soft loans for vehicle, deepfreeze and
household things with the negotiation of bank.
• Solving agents’ problem immediately.
• Training of agents on consumer behavior.
• Efficient cash collection through more cash collection centers near
to agents selling price.
• Agent renewal system introduced.

• Performance appraisal System:

“Performance appraisal is the systematic, periodic and an

impartial rating of an employee’s excellence in matters pertaining to his
present job and his potential for a better job”.

After recruitment organization gives specific project to the

employee to train him. After completion of this project, it is checked by
the authorized person of the department if the employee do not perform
well then they are terminated from the organization. Performance
Appraisal System is still in rudimentary stage in Sumul. Through
Performance the top management does appraisal or reporting head, it is
short on comprehensiveness and touches only few aspects. However the
silver lining is that in order to make system transparent and open,
evaluation is cross-checked with the employee by HRD people and in
case of some differences try to solve out the problem

• Promotions and Transfer Policy:

->Promotion Policy:

The Management Trainees are given 6 month training and

later on if they perform well are promoted as provisionary and after one
year they are confirmed. Moreover promotion is given on the basis of
education obtain by different personnel.

->Transfer policy:
 There is not any policy for transfer, but managing
director of the organization generally takes the transfer decisions.

• Wage & Salary Structure:

 Dearness Allowance
 Additional Dearness Allowance (ADA)
 House rent Allowance (HRA)

Some fixed amount of house rent allowance is provided for those

who live in rental house. Sumul has a “fixed increment system” for each
level of authority in the organization. Only one increment is given a
year. However for calculating increment for an employee, the period of
time the day of his joining. Rather month of January and July are
considered as base month for the same. For instance, an employee
joining the organization in second week of January in 1999 would be
having his next increment due in 2000 July not in January. There is also a
compulsory increment every 14 and 23 year in which, the employee
becomes eligible for immediate next salary scale. Plus two increments
without any change in his/her designation. However, during last
agreement, upgraded employees have also been given designation as
per new salary scale. Recently, Sumul has revised its pay structure to
attract more young talents.

->Leave Travel Allowance (LTA)

Every year allowance is given to employees for traveling
any place. This amount is also fixed. Super Annuitant Scheme
(SAS) it provided after every 3 years (BASIC+DA+ADA).

->Washing Allowances (WA)

Rs. 20/- is provided every month as washing allowances to
worker category.

->City & Travel Allowance (CTA)

Those who live in city are given these allowances more than
those are in the village.

->Shift Allowance (SA)

Shift allowance is provided in following way:
 • PRESENCE FOR ONE-MONTH ALLOWANCE (RS.)

25 & More 65
24 60
23 45
22 30
21 15
20 & 00
Below

->Visiting Allowance (VA)

This allowance is given to the entire field officers and
veterinary officer.

->Bicycle Allowance (BA)

It is give to all permanent employee of worker category.

->Scooter Allowance (SA)

This allowance is given to all the officers and
marketing executives.

->Driving Allowance (DA)

It is giving to the drivers of tempos and trucks of SUMUL.

Other Components:
a) Bonus
(8.33% of BASIC +DA+ADA)
b) Funeral Fund
Rs.3000 to the ward and family of the dead.
Every month Rs1/- of all higher executives salary
is maintained for this fund
Human Resource ( HR )

• Centralized Address Directory

– Central source for address requirement in any system

– Grouping of addresses
– Data retrieval using multi-dimensional search criteria

• Time Attendance System

Tracking employee attendance data using biometric device

–
(finger based)
– Same data used in payroll for salary processing

• Income Tax System

– User defined formulas

– Provisional/Estimated Income Tax statement
– Form 16, Form 24 & SARAL
Personnel Information System & Payroll Accounting System

• Objectives of the Personnel Information

– Basic information about each employee

– Supports unlimited earning & deduction parameters
– Salary Processing & Pay slip generation
– Bonus / Ex-gratia calculation
– PF & SAS passbook
– Payroll data used for Income Tax calculation

The HR department keeps the information of each and every

employee from top to bottom level workers. This information is
updated from time to time. This Personnel information includes
name, address, gender, birth date, designation, name of the
department where the employee or worker is working, job
responsibilities, shift no., job code no. etc ..With the photograph
of the worker/employee.
 MY EXPERIENCE

Summer placement is an important aspect of management

studies as it provides the students with an opportunity and
experience of working in an industry. My training at Sumul dairy was
a great learning experience.

It was an opportunity for me to see how Sumul Dairy manages

the milk processing and milk distribution in a very efficient manner
for proving pasteurized, nutritional milk to whole population of Surat
everyday. And also gives the milk producers (farmers) the maximum
return for their contribution. Even being a Co-operative society,
Sumul dairy manages everything in very professional manner.

Apart from various aspects of Dairy Technology, I also learnt how

the theory is put into practice in these organizations. I came to know
that the activities, carried out in the organizations are actually very
different from what we learn in the classroom.

To know about various aspects of Sumul Dairy, I interacted with all

the levels of employees of Sumul Dairy. And as a trainee, I got very good
response from them. I also found a work atmosphere there was very
cordial. The Plant visit gave me an exact idea of how the care is taken
for very minute aspects, related to production for cleanliness at Sumul
dairy.

Training at Sumul dairy will surely help me in my future endeavours.