Shree Radhe Dairy Farm & Foods Limited.

1.1 Name and location of company: -

“Shree Radhe Dairy Farm and Foods Ltd” Is A Distinguished Manufacturer Of Wide Range Of Milky
Dairy Products. That Head Office Location Is 427-428, Sky View, Near Swaminarayan Temple, Opp.
Sagwadi, Varachha Main Road, Surat-395006(Gujarat).

1.1.1 OTHER BRANCH: -

Manufactured At 40 To 47, Shree Govardhan Industrial Estate, Pipodara, Gujarat 394110.

1.1.2 Branch office:-

201,Building No.4,Rajendra Park Housing Society, Near I.B. PatelSchool,Station,Goregaon –

(West) Mumbai.

1.2 Year of establishment :-

“Shree Radhe Dairy Farm And Foods Ltd.” Establishment in 2015.

1.3 The journey of the company: -

India is the largest producer of milk and dairy products. There are around 150 million small
dairies and local co-operative which supply milk and milk products. Today, we are going to
talk about the journey of one such exceptional dairy, Shree Radhe Farm and Foods Ltd. Also
known as Vastu Dairy

Vastu Pure Ghee Company i.e.Vastu Dairy was found in 2015 by Mr. BhupatSukhadiya.
What is amazing is that in the span of 8 years, the growth of the company has grown to 10
times.

The founding stones to Vastu Dairy were built on “I quit”. It was when Mr. BhupatSukhadiya
decided to quit his job and start a business of his own. From getting Rs. 1200 – Rs.1500 to
being the most loved brand of the customers, Vastu Dairy’s journey has been challenging and
inspiring.

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“Drop by drop fills the ocean”. The starting point of Vastu Dairy was a drop in the ocean
too. Mr. Bhupat Sukhadiya started the journey of Vastu Dairy with a small dairy shop.
Opportunities knocked his door and Mr. Bhupat Sukhadiya grabbed it instantly.

Having the knowledge of production and marketing, he got an opportunity for the trading of
ghee. For this, he bought an 1800 sq. Ft. Production unit and expanded his business to the
trading of Vastu pure ghee. The journey was a successful one as the mission was of achieving
non-monetary benefits like providing employment to as many individuals as the company
can.

It is rightly said that if you do things for the right purposes, you will find yourself getting
directions for all the right things for your business.

“When you want something, all of the Universe conspires in helping you achieve it”

(From the book- The Alchemist)

Team Vastu Dairy has dreamt of achieving wonders in the manufacturing and supplying
channels. “They call us dreamers, but we are the ones who never sleep”. The visionary team
of Vastu Dairy has considered Vastu Dairy as their dream.

With the willpower of numerous people and employees associated with the brand, the best
wishes of the satisfied customers and the subtle support of the almighty, Vastu Dairy has now
expanded from 350 sq. Ft. Corporate office to 3500 sq. Ft., from having a production unit of
1800 sq. Ft. to 35,000 sq. Ft., from having the production capacity of 5 tonnes/day to 25
tonnes/day, from having 3 distributors to having 2000 distributors, from having 12 employees
to having a family of 250 employees, having 1 lakh+ retailer, and making its presence in 22+
states of India, Vastu Dairy has made its place in the heart of numerous people in numerous
ways.

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The reason of success of Vastu Dairy is the work ethics and the promise of ‘Surety for Purity’
that it has made to itself, to its customers. Continuing the promise made, Vastu Diary
celebrates 8 years of taste, purity and trust.

Vastu Dairy will never to stop this amazing journey of providing satisfaction to its customers.
We are now widening our reach through our e-commerce store. Grabbing the need of the
hour and demand of most of the audience of purchasing products online, we have launched
our ecommerce store on www.vastudairy.com, wherein the orders can be placed and timely
delivery is ensured.

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Vastu Pure Ghee is one of the most loved products of Vastu Dairy. Vastu Pure Ghee is
available in 2 forms. One is Vastu Cow Ghee and the other is Vastu Buffalo Ghee. There are
also various dairy products made by Vastu dairy

Shree Radhe Dairy launches new product range namely “Vastu Gold Ghee”. The new
products were launched by Mr.Bhupat Sukhadiya(Founder & Chairman) and Mr.Bhautik
Virani(Vice President) at Vastu Dairy’s mega event which witnessed active participation
from many business owners and audience associated with Team Vastu.

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Celebrating the 8 years of a successful and satisfactory journey of Vastu Dairy and its
customers, Shree Radhe Dairy launches two new product range namely “Goshala A2 Gir
Cows Ghee” and “A2 Milks”. The new products were launched by Mr.Bhupat
Sukhadiya(Founder & Chairman) and Mr.Bhautik Virani(Vice President) at Vastu Dairy’s
mega event which witnessed active participation from many business owners and audience
associated with Team Vastu.

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The chief leaders of the team strongly believe that the credit for Vastu Dairy’s success goes
to their ethics and serving purity for sure. Vastu Pure Ghee has contributed greatly in the
development of the business as well as the health of its customers. Vastu Pure Ghee is made
purely from cow’s milk, the herd of cows that are looked and cared after in a Goshala owned
by the company.

Remember to get Vastu Pure Ghee from us since we only offer the best to our customers.

Vastu Ghee is proud of its purity and has many benefits. We want to know if there are any
ghee benefits that you practice and how ghee helps you in your daily life. Do let us know and
follow the Vastu Dairy blog for more such interesting articles about ghee.

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1.4 The name of the founder and managing director:-

Directors of Shree Radhe dairy farm and foods private limited are Bhupatbhai Sukhadiya and

Jagruti Sukhadiya.

“You have to be different to make a difference”

Mr. BhupatSukhadiya

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1.5 Vision statements:-

“To be among the top 5 Dairy FMCG brands of India by 2030”

1.6 Mission statement:

“Constantly create innovative products to optimize milk usage, provide nourishment

and preserve health of all our consumers”

Implementing robust Vastu Pure Ghee System, which is an Internal System, developed to
meet the all Process Requirements based on National & International Standards.

Implementing International Management System Standards (ISO)

Bench Marking, Best-In-Class requirements.

Process Optimization: Constantly working on latest innovative Technologies Capability

Development across the Organization.

Auditing &Assessments: Vastu Pure Ghee has established a frame work for Auditing &
Assessments of Complete Food Chain.

Consumer Satisfaction:It is our end ever to create a culture of “Total Quality” where

continuous improvement of our people, processes and products becomes a way of life.

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1.6.1 Testimonials:-

I use Vastu pure Ghee in making delicious sweets. Vastu pure ghee adds extra taste
tothe sweets. Especially when I prepare paryasam, I compulsory use Vastu Ghee.

Madhu Shah - Customer

I used Vastu ghee in last many times regular because it is very healthy for our body. I
tried so many ghee products but I have to say Vastu is the best in them and the test is
really very nice.

Krishna Dave - Customer

My family uses this very good product by Vastueveryday. The quality of ghee by Vastu
is very good

Aparna Bala - Customer

Vastu ghee is really a good quality ghee. In our home most of the items prepared with
this ghee.

Rahil Tank - Customer

I have tried many types of ghee but Vastu is good-Better and best. It tastes brilliant.

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1.7 VALUED SHARED:-

1.7.1Pillars of Organization:-

• Teamwork with Respect, Empathy and Empowerment

• Transparency by being Honest and Trustworthy

• Thrive On Excellence

• Continuous Learning

• Adaptability

• Ownership

• Fun is Fuel

1.7.2 Core Values:-

• We shall be FOCUSED on our GOALS

• We shall treat everyone with Humanity and RESPECT

• We shall build a culture of QUALITY & INNOVATION

• We shall practice KNOWLEDGE SHARING

• We shall always be PROCESS DRIVEN with highest levels of INTEGRITY

• We shall EMPOWER our EMPLOYEES

1.7.3 Core Ideology:-

We will always focus on one common goal and that is to contribute towards the growth
of our nation. To achieve this, we will focus on growth & expansion of our organization that
includes the growth of our team, our channel partners & stake holders. This will help us to
generate maximum employment for our country. We will always follow formal practices of
business, pay all our taxes and fulfil all legal liabilities and our responsibilities towards our
Nation.

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1.8 Organizational structure:-

“TheRadhe Dairy andFarm Ltd” Follow a line and staff organizational structure.

Line-staff organization is a management strategy whereby authorities (such as managers) set

objectives and give instructions, which are subsequently carried out by staff and other
employees. A line-staff organizational structure aims to provide flexibility without
compromising management authority in a big, complicated company.

Formal organizations are defined as communal enterprises with a distinct division of labor
and power in accordance with traditional theories of organization connected with Henri
Fayol, Frederick W. Taylor, and other individuals who invented new administrative tactics in
the late 1800s and early 1900s. According to these views, the ability to make decisions
originates from a single command structure. Lines of authority are the foundation for
relationships between people, groups, and divisions. Typically, power is exercised in a
hierarchical manner, and labor is performed in line with designated functions.

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Factory organisation chart

CMD
Mr. Bhupat Sukhadiya

VP
Mr. Bhautik Virani

Factory Head
Shailesh Bhai

Plant Head
Ashok
Sukhadiya

Production Production
Manager (Ghee) Adminstrator Logistics
Lab Chemist Store Keeper Kitchen Coordinator Manager (Milk) Security
Executive
Ajay Chauhan Mitesh Tailor Mehul Gohil Roop Singh Abhishek kumar Shanti Bhai
& Kamal Mishra

Supervisor QC
Sachinder Manager(Milk)

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1.9 Controlling system:-

ShreeRadhe Dairy And Farm&FoodsLtd. controlling system is closed loop controlling

system.

1.9.1 Closed Loop Control System:-

A closed loop control system is a system where the output has an effect upon the input
quantity in such a manner as to maintain the desired output value.

An open loop control system becomes a closed loop control system by including a feedback.
This feedback will automatically correct the change in output due to disturbances. This is
why a closed loop control system is called as an automatic control system. The block diagram
of a closed loop control system is shown in figure.

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In a closed loop control system, the controlled variable (output) of the system is sensed at
every instant of time, feedback and compared with the desired input resulting in an error
signal. This error signal directs the control elements in the system to do the necessary
corrective action such that the output of the system is obtained as desired.

The feedback control system takes into account the disturbances also and makes the
corrective action. These control systems are accurate, stable and less affected by noise. But
these control systems are sophisticated and hence costly. They are also complicated to design
for stability, give oscillatory response and feedback brings down the overall gain of the
control system.

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2.1 Name and address of plant:-

“Shree Radhe Dairy Farm and FoodsLtd” Is A Distinguished Manufacturer Of Wide Range
Of Milky Dairy Products.

40 To 47, Shree Govardhan Industrial Estate, Pipodara,palod, Gujarat 394110.

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2.2 Plant layout:-

RAW MILK RECEIVED

Platform Test:

1. Alcohol Test

2. Fat Test

3. Acidity Test-Phenolphthalein

Cream Standardized Milk

1. Fat Test
1. Fat Test
2. Acidity Test-Phenolphthalein
2. Acidity Test-Phenolphthalein

Finish Product

Butter Fat
1. Fat Test

2. Acidity Test-Phenolphthalein

1. Fat Test

2. Acidity Test-Phenolphthalein

Ghee

Acidity Test (FFA)

Mineral Test

Baudoin Test

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2.3 Raw material used:-

Raw materials are materials or substances used in the primary production or

manufacturing of goods. Raw materials are commodities that are bought and
sold on commodities exchanges worldwide. Traders buy and sell raw materials
in the factor market because raw materials are factors of production, as are
labour and capital.

“Shree Radhe dairy farm and foods Ltd” Is raw material use as a cow milk.

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2.4machines used

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2.4.1Physical Plant

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2.4.2 Machinery and Equipment:

“Machinery and equipment mean: Industrial fixture an item attached to a building or to land.
It must have a function relative to an industrial fixture or a device.To determine if some of a
building is a support facility, The building are examined.

SHREE RADHE DARIY FARM AND FOODS LTD. manufacture milkproducts,ghee, butter
milk etc. The machine and equipment’s to manufacture those products are shown in the
below picture.

 Milk packaging

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 Ghee packaging:

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 Butter cold storage:

2.5Process used:-
Traditionally ghee is made first by converting milk into curd, turning in the dahi at
room temperature to yield traditional Desi Makhan or Butter, Clarifying the
traditional butter after some period of storage and conversion into ghee by boiling it
continuously at temperatures up to 150 to 120 C depending upon regional. In the same
way key is manufactured in SHREE RADHE DAIRY FARM AND FOODS LTD.
Including some test.Firstly, the raw milk is received than the platform test is taken in
which alcohol test fattest and acidity test. After that milk is converted into cream from
which butter is taken out and the conversion of key take place by boiling it
continuously. After that small amount manufactured key is tested in the laboratory
test like acidity test, Mineral test and baud in test and then it is approved as edible key
and then the packaging and distribution of product take place.

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2.6 Material Handling Equipment:-

Milk is the primary raw ingredient for all dairy plants. The raw milk can be purchased in a
variety of containers; typically, aluminum, stainless steel, and food-grade plastic cans with
capacities of 5, 10, 20, and 40 liters are used. The milk can be purchased by truck or in road
tankers in cans. Rail tankers are able to deliver milk across great distances. Milk is handled
and purchased with a cold chain to decrease microbial load and lengthen shelf life.

Gravity or chain conveyors are two options for handling milk cans that are received at the
dairy facility. It is possible to immediately pump milk delivered by road tankers into the silo.
Conveyors with screw types can move fluid and powdery goods.

2.7 Inventory control method:-

FIFO and Expiration Dates

Your dairy products sell-by date controls your inventory rotation. For example, say you
receive a milk shipment on day three, day six and day nine. As day three milk is sold, you
restock your shelves with day six milk. Day three milk is pushed to the front of the shelves
with day six milk behind it. If day three milk remains unsold after the sell by date, you
remove it from your shelves and push day six milk to the front of the shelf. As day six milk is
sold, day nine milk is placed behind day six milk.

2.8CRPplan:-

Capacity requirement planning forms part of the operational stage of the planning process
and works in conjunction with a manufacturing requirement planning (MRP) system. A
detailed capacity requirement plan provides an operational level overview for the production
cell and assists the operations manager with identifying all of the elements that will be
required to deliver the output.

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For the operations manager to accept the capacity plan they may need to take into account,
materials, machine production time, machine change over time and tooling, maintenance and
downtime, along with manpower availability and skill, so that shift work can be assigned and
resources can be used efficiently.

The operational team will feedback their ability to meet the planning requirements to the
planning team, who will then look to ensure materials or components required for the
production process are made available in time and in full via the procurement team. The
planning team will then confirm the capacity plan and the materials requirement plan and
generate a works order which will then be passed to the production team.

What are the steps in capacity planning?

Capacity management requires the analysis of two types of capacity:

• Short and medium-term capacity – review of a 2-18 month demand forecast

• Aggregate capacity – a horizon scan of the capacity of the whole organisation to meet
fluctuations in demand

There are three stages in the capacity management process:

• Measuring and forecasting aggregate demand

• Identifying the different capacity plans required to meet forecast demand

• Identification of the most suitable capacity plan to meet the aggregate demand given the
organisations capacity constraints

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2.9 Quality control:-

Milk quality control is the use of approved tests to ensure the application of approved
practices, standards and regulations concerning the milk and milk products. The tests are
designed to ensure that milk products meet accepted standards for CHEMICAL
COMPOSITION AND PURITY AS WELL AS LEVELS OF DIFFERENT MICRO-
ORGANISMS.

Testing milk and milk products for quality and monitoring that MILK PRODUCTS,
PROCESSORS and MARKETING AGENCIES adhere to accepted codes of practices costs
money. There must be good reasons why we have to have a quality control system for the
dairy industry.

The reasons are:

1. To the Milk Producer.

The milk producer expects a fair price in accordance with the quality of milk she/he
produces.

2. The Milk Processor.

The milk processor who pays the producer must assure himself/herself that the milk received
for processing is of normal composition and is suitable for processing into various dairy
products.

3. The Consumer.
The consumer expects to pay a fair price for milk and milk products of acceptable to
excellent quality.

4. The Public and Government Agencies.

These have to ensure that the health and nutritional status of the people is protected from
consumption of contaminated and sub-standard foodstuffs and that prices paid are fair to the
milk producers, the milk processor and the final consumer.

All the above-is only possible through institution of a workable quality testing and assurance system
conforms to national or internationally acceptable standards.

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2.10 Production Department Visit

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3.1List of product and service:-

“Shree Radhe Dairy Farm & Foods Ltd.” is a distinguished manufacturer of a wide range of
Cow Ghee and Buffalo Ghee. Founded in the year 2015, we are a renowned company that is
in cepted with an objective o fprovid in ghee quality and pure ghee in various quantities
within scheduled time period. Situated in Surat (Gujarat, India), we process ghee in
accordance with set industry norms. Under the headship of “Mr. Ridhesh Lakkad”Manager,
we have gain edhuge clientele in our country

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3.2 Services:-
 CSR ACTIVITES

 PROVIDING BEST QUALITY OF PRODUCT TO THE

CUSTOMER
 FAST TRANSPORT SERVICE
 GREAT DISTRIBUTION NETWORK
 CUSTOMER DELIGHT
 PRODUCTION CAPACITY

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3.3 NUMBER OF CUSTOMERS/OVERSEAS CUSTOMER:-

It is the exclusive marketing organization for products under the brand name of SHREE
RADHE DAIRY FARM & FOODS LTD. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links more than 5 lakhvillage
milk products with corers of consumers in India.

3.4 Marketing Plan:-

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.

Strategic planning involves an analysis of the company's strategic initial situation prior to the
formulation, evaluation and selection of market-oriented competitive position that contributes
to the company's goals and marketing objectives.

Strategic marketing, as a distinct field of study emerged in the 1970s and 80s, and built on
strategic management that preceded it.

Marketing strategy highlights the role of marketing as a link between the organization and its
customers.

Marketing strategy leverages the combination of resources and capabilities within an

organization to achieve a competitive advantage and thus enhances firm performance.

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3.5 Major competitors:-

1. Amul Dairy

Amul Dairy Ltd. is an Indian food processing company that manufactures, markets, and sells
milk, milk products, and other edible products. Its milk products include cultured products,
ice cream, paneer, and ghee under the Amul Dairy brand.

2. Mother’s Dairy

Mother Dairy Fruit & Vegetable Ltd. is an Indian food processing company that
manufactures, markets, and sells milk, milk products, and other edible products. Its milk
products include cultured products, ice cream, paneer, and ghee under the Mother Dairy
brand.

The company also sells edible oils, fresh fruits and vegetables, frozen vegetables, and
processed food like fruit juices, jams, pickles, etc.

Mother Dairy was founded in 1974 as a wholly-owned subsidiary of the National Dairy
Development Board

3.6 SpecificDistributionchannel:-

In perishable food products, physical distribution is a very important part of the whole
business. The transportationof "Vastu ghee" to the stores that sell. While transportation, the
ghee has to be stored properly, so that it does not get contaminated. To completely understand
physical distribution, consider the case of "Vastu ghee". Vastughee is made in "SuratDistrict"
somewhere in Gujarat. From there it is distributed all over India and it is available at the local
store near to us. The destitution guys have to make sure that, every little “Banya shop" on
every little street of our extremely large country gets “Vastu ghee”.To add to this.

Enormous challenge, “vastu ghee” is a perishable milk based product. It has to be stored and
transported properly so that it does not get spoilt on the way. And while the distribution guys
do all this, company has to make sure that they keep the costs under control. The above
example gives the idea of what the distribution guys do. However, in practice what they do is,
set up distribution channels.

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3.7 Distribution channels:

 Distribution channels are all the sub-marketers or intermediate marketers of

the company. For example: selling agents, wholesalers, retailers, authorized
representatives, and showrooms etc; are basically distribution channels.
 The distribution channel for a particular product : Manufacturer - Wholesaler -
Retailer - User Manufacturer - Distributor - Wholesaler - Retailer –User.

3.8 PLC concept and association of their product with respect to PLC
stage:-

The product life cycle is the process a product goes through from when it is first introduced
into the market until it declines or is removed from the market. The life cycle has four
stages— introduction, growth, maturity, and decline.

While some products may remain in a prolonged maturity state for some time, all products
eventually phase out of the market due to several factors including saturation, increased
competition, decreased demand, and dropping sales.

The 4 Stages of the Product Life Cycle. Once a product is developed, it typically goes
through the four stages of the product life cycle—from introduction through decline—before
eventually being retired from the market.

1. Introduction

Once a product has been developed, it begins the introduction stage of the PLC. In this stage,
the product is released into the market for the first time. The release of a product is often a
high- stakes time in the product's life cycle, although it does not necessarily make or break
the product's eventual success.

During the introduction stage, marketing and promotion are at a high, and the company often
invests quite a bit of effort and capital in promoting the product and getting it into the hands
of consumers. This is perhaps best showcased in Apple's (AAPL) - Get Apple Inc. Report
famous launch presentations, which highlight the new features of their newly (or soon-to-be)
released products.

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It is in this stage that the company is first able to get a sense of how consumers respond to the
product, whether they like it, and how successful it may be. However, it is also often a heavy-
spending period for the company with no guarantee that the product will pay for itself
through sales.

Costs are generally very high during this stage, and there is typically little competition. The
principal goals of the introduction stage are to build demand for the product and get it into the
hands of consumers, hoping to later cash in on its growing popularity.

2. Growth

During the growth stage, consumers start taking to the product and buying it. The product
concept is proven as it becomes more popular, and sales increase.

Other companies become aware of the product and its space in the market as it begins to draw
more attention and pull in more revenue. If competition for the product is especially high, the
company may still heavily invest in advertising and promotion of the product to beat out
competitors. As a result of the product growing, the market itself tends to expand. Products
are often tweaked during the growth stage to improve their functions and features.

As the market expands, more competition often drives prices down to make the specific
products competitive. However, sales usually increase in volume and continue to generate
revenue.

3. Maturity
When a product reaches maturity, its sales tend to slow, signaling a largely saturated market.
At this point, sales may start to drop.

Pricing at this stage tends to get competitive, so profit margins shrink as prices begin to fall
due to the weight of outside pressures like increased competition and lower demand.
Marketing at this point is targeted at fending off competition, and companies often develop
new or altered products to reach different market segments.

Given the highly saturated market, less-successful competitors are often pushed out of
competition during the maturity stage. This is known as the "shake-out point." In this stage,
saturation is reached and sales volume is maxed out. Companies often begin innovating to
maintain or increase their market share, changing or developing their product to satisfy new
demographics or keep up with developing technologies.

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The maturity stage may last a long time or a short time depending on the product. For some
brands and products—like Coca-Cola (KO) - Get Coca-Cola Company Report—the maturity
stage lasts a long time and is very drawn out.

4. Decline
Although companies generally attempt to keep their product alive in the maturity stage as
long as possible, eventual decline is inevitable for virtually every product. In the decline
stage, product sales drop significantly, and consumer behavior changes, as there is less
demand for the product. The company's product loses more and more market share, and
competition tends to cause sales to deteriorate.

Marketing in the decline stage is often minimal or targeted at already-loyal customers, and
prices are reduced.

Eventually, the product is retired out of the market altogether unless it is able to redesign
itself to remain relevant or in-demand. For example, products like typewriters, telegrams, and
muskets are deep in their decline stages (and in fact are almost or completely retired from the
market).

3.9 Market segmentation:-

The market segmentation is the most important process which helps bringing Customers
more in B2B and B2C marketing business.

Segments such as lifestyle, behavioural,other meaningful segments etc.

It also assumes the requirement different marketing programs covering offers, Prices,
promotion etc.

While it is profitable it also supports development and planning. Hence mostly STP approach
is used to achieve the target of market.

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3.10 Positioning Strategies:-

Positioning is a marketing strategy, also referred to as product positioning, which refers to

how a brand wants to be perceived in the mind of customers relative to competing brands.

The 3 keys of strategic positioning

Creating an image and shaping how a brand is viewed by consumers is a very purposeful and
meticulous act. Background research and an understanding of the market are crucial to your
brand's success.

Product positioning begins well before the creation of brand identity and is crucial to
branding. The three keys to strategic positioning are often referred to as the three "C's":

1. Customer:

Central to positioning knows your focus by identifying what the buyer wants and needs.
Research to see if there is a problem customers need a solution for and what needs they might
report via surveys, interviews and reviews. Listening to buyer needs and placing a high
importance on those needs is pivotal in getting customer attention and loyalty.

2. Channel:

Your channel, or sales team, is central to understanding customer needs and is where you will
likely find the majority of information for successful positioning. Your channel is a direct
connection to the customer, and through their experience, you can get information such as the
customer profile, customer problems, competitive intelligence and the purchase process. With
experience in the entire sales cycle, channels will help you identify brand strength to
effectively focus your positioning strategy on what you do well as a brand.

3. Competition:

A final step in formulating a product position is paying attention to your competition and
their position. If yours is unique and easily differentiated from what is on the market, then
your positioning statement (your assertion of brand uniqueness) is effective.

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
MARKETING MIX [4Ps]:

Marketing mix is defined as the set of tools or tactics adopted to promote a product or a
service in the market, in order to sell it. It is often referred to as the integration of the 4Ps.







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


 Product:-
Product is the item offered for sale. A product can be a service or an item. It can be physical
or in virtual or cyber form. Every product is made at a cost and each is sold at a price.

 Price:-

Pricing is the method of determining the value a producer will get in the exchange of goods
and services.

 Place:-

Place in marketing mix refers to the geographical location in which the company sells its
products and provides its services. It is said that location is one of the most important parts of
marketing strategy.

 Promotion:-

Promotion refers to any type of marketing communication used to inform target audiences of
the relative merits of a product, service, brand or issue, most of the time persuasive in nature.
It helps marketers to create a distinctive place in customers' mind, it can be either a cognitive
or emotional.

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3.11 Promotion tools use:-

For an effective promotion of any product or service, there are a number of marketing
promotional tools that can be utilized in a promotion program. These should be applied
carefully according to the given circumstances. Since every promotional tool is suitable for
certain circumstances.

The following are the important types of marketing promotional tools that must be in your
mind.

1. Advertising
2.Personal Selling
3. Sales Promotions
4. Public Relations
5. Direct Marketing

3.12 Pricing method followed:-

Mark-up Pricing Method:

This is the most commonly used method. The method is also known as cost-plus pricing. In
this method, a standard mark-up (or profit margin) is added to the product costs. This method
is used in construction business, professions, and even for consumer goods.

The method can be used only when company has necessary data about various costs and
expected sales. Company may prefer fixed per cent of costs or fixed per cent of selling price.

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3.13Sales force management:-

Personal selling is a very important component of the marketing activity. The success of a
business concern depends considerably upon the performance of its salesperson. Salesperson
play a crucial role in communicating company and product information tocustomers. The task
of selling company’s products and services is entrusted to the salesmen of the company.

A salesperson not only communicates product information to customers but also relays the
reactions of customers towards company and its products to his employer. Hence, the
management of sales force is an important aspect of marketing management. It is concerned
with the task of selection, orientation training, supervision, motivation compensation and
evaluation of the sales force of the company. Although in some organisation some of the
above mentioned duties are assigned to the personnel manager but in most cases it is the sales
manager who is responsible for successful performance of these functions.

Sales Force Management (SFM) is a sub-system of marketing management. It is Sales

Management that translates the marketing plan into marketing performance. That is why sales
force management is sometimes described as the muscle behind the marketing management.
Actually sales force management does much more than serving as the muscle behind
marketing management.

Sales managers in modern organization are required to be customer- oriented and profit-
directed and perform several tasks besides setting and achieving personal selling goals of the
firm. Let us understand briefly the sales force management, tasks involved in the sales force
management. Sales managers in modern organization are required to be customer- oriented
and profit-directed and perform several tasks besides setting and achieving personal selling
goals of the firm.

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3.14 CRM practices:-

Customer relationship management (CRM) is the combination of practices, strategies and

technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle.

3.15 Any other company-specific detail:-

Amul is an Indian state government cooperative under the ownership of Gujarat Cooperative
Milk Marketing Federation, Ministry of Cooperation, Government of Gujarat based at Anand
in Gujarat. Formed in 1946, it is a cooperative brand managed by the Gujarat Cooperative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly controlled by 36 lakh (3.6
million) milk producers in Gujarat, and the apex body of 13 district milk unions, spread
across 13,000 villages of Gujarat. Amul spurred India's White Revolution, which made the
country the world's largest producer of milk and milk products. Kaira Union introduced the
brand “Amul” for marketing its product range. The word “Amul” is derived from Sanskrit
word ‘Amulya’ which means ‘priceless’ or precious, a name proposed by then founding
leader of Agriculture College, Maganbhai Patel.

Tribhuvandas Kishibhai Patel under the guidance of SardarVallabhbhai Patel became the
founding chairman of the organization and led it until his retirement in the 70s. He hired
VergheseKurien in 1949 and convinced him to stay and help with the mission.[8][9] Under
the chairmanship of Tribhuvn. Kurien was the chairman of Amul briefly after Tribhuvandas
Kishibhai Patel died in 1994. Kurien, founder-chairman of the GCMMF for more than 30
years (1973–2006), is credited with the success of Amul's marketing.

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5.1 .Recruitment procedure:

Recruitment is a core function of the Human Resource department. It is a process that

involves everything from identifying, attracting, screening, short-listing, interviewing,
selecting, hiring, and onboarding employees.

The recruitment teams can be large or small depending on the size of an organization.
However, in smaller organizations, recruitment is typically the responsibility of a recruiting
manager.

Many organizations outsource their recruiting needs, while some companies rely exclusively
on advertisements, job boards, and social media channels to recruit talent for new positions.
Many companies of today, use recruitment software to make their recruitment process more
effective and efficient.

5.1.1 Planning Of The Recruitment Process:

Is served as the basis for the whole recruitment process, where the positions for which
recruitment process is to be done are properly analyzed and presented. It includes job
specifications and nature, qualifications, experience, and required skills for the job,
etc.A structured recruitment plan is compulsory to attract potential candidates from a
pool of candidates. The potential candidates should be qualified, experienced with a
capability to take the responsibilities required to achieve the objectives of the
organization,The recruitment plan basically consists of the following functions-
vacancy identification, analysis of the particular job, analysis of the job, description of
the job, specification and evaluation of the job.

5.1.2 Developing a Strategy for the Recruitment:

It is the second step in the recruitment process where a proper blueprint for the recruitment
process is prepared and every task is undertaken according to it. After completing the
preparation of job specifications and job descriptions, the next step is to decide which
strategy to adopt for recruiting the potential candidates for the organization.

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When preparing a recruitment strategy, the HR considers the following points −

 Make or buy employees

 Geographical area
 Types of recruitment
 Recruitment sources

The development of a recruitment strategy is a long process, but having the right strategy is
necessary to attract the right candidates.

5.1.3 Search for The Most Suited Candidate:

It is basically concerned with taking the decisions regarding the source for the recruitment
process. There are basically 2 sources for this process: internal and external source of
recruitment. This is the process of recruitment where the resources are selected depending
upon the requirement of the vacant position. After the recruitment strategy is done, the
searching for potential candidates will be initialized.

This process consists of two steps –

• Starting off the process− once the line manager verifies and permits the existence of
the vacancy, the search for candidate’s starts.

• Media selection− here, the organization selects the media through which the
communication of vacancies reaches the prospective candidates.

The two main sources of selection are.

Internal Sources
Internal sources of recruitment mean to recruit employees within the organization through.
• Promotions
• Transfers
• Former Employees
• Previous Applicants
• Internal Advertisements (Job Posting)
• Employee Referrals

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External Sources
External sources of recruitment mean to recruit employees outside the organization through
• Direct Recruitment
• Employment Agencies
• Employment Exchanges
• Professional Associations
• Advertisements
• Campus Recruitment

5.1.4 Short-listing and Screening Of The Candidates:

This process follows the process of selecting the source of recruitment. Screening is the
process of filtering the applications of the candidates for the further selection process.

Screening is an integral part of the recruitment process that helps in removing unqualified or
irrelevant candidates, which were received through sourcing.

5.1.5 Checking The Resumes And Cover Letter Received:

It is the first step involved in the screening process. In this process, the resumes of the
candidates are checked and reviewed for the candidates’ work experience, education, and
overall background matching the requirement of the job

While reviewing the resumes, an HR keep the following points in mind, to ensure better
screening of the potential candidates

 Reason for change of job

 Longevity with each organization
 Long gaps in employment
 Job-hopping

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5.1.6 Doing An Interview Via Video/Telephone Call:

Conducting video or telephonic interviews is the second step of screening candidates. In this
process, after the resumes are screened, the candidates are contacted through phone or video
by the hiring manager. This screening process has two outcomes −

 It helps in verifying the candidates if they are active and available.

 It also helps in giving a quick insight into the candidate’s ability to answer interview
questions, attitude, and communication skills.

5.1.7 Monitoring And Controlling The Whole Process:

It is the last step in the process of recruitment and is considered as one of the most important
steps in the recruitment process as it keeps a check whether all the activities are going in
accordance with the predetermined plans. In this process, the effectiveness and validity of the
process and methods are assessed. Recruitment is costly, hence it is important that the
performance of the recruitment process is thoroughly evaluated.

The costs incurred in the recruitment process are to be evaluated and controlled effectively.
These include the following −

 Salaries to be paid to the Recruiters

 Administrative expenses and Recruitment overheads
 Advertisements cost and other costs incurred in recruitment methods, i.e., agency
fees.
 Cost incurred in recruiting suitable candidates for the final selection process
 Overtime and Outstanding costs, while the vacancies remain unfilled
 Time spent by the Management and the Professionals in preparing job description, job
specifications, and conducting interviews.

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5.2 Selection process:

The selection process refers to selecting the right candidate with the required qualifications
lengthy one and also complex. It involves a series of steps before the final selection. The
procedure of selecting the employees may vary from industry to industry according to their
own needs. Every organization designs their selection process while keeping in mind the
urgency of hiring the people and the requisites for the vacancy of the job.
The selection process refers to selecting the right candidate with the required qualifications
and capabilities to fill the vacancy in the organization. The selection process is quite a
lengthy one and also complex. It involves a series of steps before the final selection. The
procedure of selecting the employees may vary from industry to industry according to their
own needs. Every organization designs their selection process while keeping in mind the
urgency of hiring the people and the requisites for the vacancy of the job.
Popularly there are seven stages in the process of selection .

5.2.1 Application:

After the job opening has been announced, the candidates apply for the respective jobs
which suit them.

5.2.2 Screening and Pre-selection:

The goal of this second phase is to reduce the number of candidates from a large
group to a manageable group of between 3-10 people that can be interviewed in
person. The selection is based on their selection technique and according to the
company’s needs.

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5.2.3 Assessment:

The full assessment usually is more accurate as this helps the organization to check
the candidate well. Assessments include work sample tests, integrity tests, and related
job knowledge tests.

5.2.4 Reference and Background Check:

An essential step is the reference check, which is to confirm about the candidate. The
candidates are asked to give references and he follows up on these.

5.2.5 Decision:

The next step is to decide to choose the correct candidate who promises the greatest
future potentiality for the organization.

5.2.6 Job Offer and Contract:

After the decision-making process, the candidate needs to accept the offer which is
known as the contract.

5.3 No of employees:
There are 500 employees working under the Shree Radhe Dairy, inclusive of 21 states
Sales Team,, Factory Staff, Head Office Staff.

5.4 Attendance maintenance:

Use punching machine for head office employee and for factory employee and for
factory employee also and sales team we will use ERP software to maintain
attendance.

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5.5 Training given:

Training and Development is one of the main functions of the human resource
management department. Training refers to a systematic setup where employees are
instructed and taught matters of technical knowledge related to their jobs. It focuses on
teaching employees how to use particular machines or how to do specific tasks to
increase efficiency.

Product training can be part of your onboarding training program or ongoing skills
training. You can use it to educate your employees about the products or services they
represent to ensure they make a good impression.
Also, it keeps your current staff up-to-date on new products, services, or features. You
can either train your employees periodically with face-to-face courses or use an LMS
to make this happen with far more ease.

5.6 Fringe benefits required by law:

The mandatory fringe benefits are intended to provide employees with medical care,
mitigate them from economic hardships in the event they lose employment, and
provide them with retirement income to sustain them during retirement. The following
are some of the mandatory fringe benefits that employers are required to provide:

5.6.1 Health insurance:

This fringe benefit is contained in the Patient Protection and Affordable Care Act. It
requires businesses that employ more than 50 people to provide healthcare plans, and
employees are required to have health insurance coverage. The health care plans cover
visits to primary care physicians, specialist doctors, and emergency care.

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5.6.2 Unemployment insurance:

The Federal Unemployment Tax Act (FUTA) requires employers to pay a federal and
state unemployment tax to the Department of Labor, which provides wages, training, and
career guidance to employees who become unemployed due to no fault of their own.
Such benefits are meant to provide brief monetary assistance to unemployed citizens who
meet the requirements of the act.

5.6.3 Medical leave:

Businesses that employ over 50 employees are required by law to provide family and
medical leave to an employee who has worked for over one year in the company. The
medical leave is unpaid, protected, and can last up to 12 weeks.

5.6.4 Worker’s compensation:

The worker’s compensation benefit is administered by the Department of Labor to

federal workers who are injured at their workstation or acquire an occupational disease.
Employees are provided with medical treatment, wage replacement benefits,
rehabilitation, and other benefits. The compensation requirements vary by state, and
injured employees should contact their state worker’s compensation board.

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5.7 Leave rules:

 The calculation of earned leaves is done monthly for the entire calendar year. Ideally,
the earned
leaves get credited to the employee’s leave account at the start of the calendar year,
but the number of leaves the employee is entitled to also depends on the number of
months they worked. For instance, according to the employer’s leave policy, 1.25
leave days get added to the employees leave account on completion of one month of
service with the company.
 If an employee joins the company at the middle of the calendar year, then the entitled
earned leaves will be calculated on a pro-rata basis, from the joining date to
December 31 of the same year.
 If an employee resigns, the entitled leaves are calculated on a pro-rata basis until the
last working day. If the employee has taken any extra leaves, this will get adjusted in
the final settlement amount.
 If an employee is unable to utilizeall the entitled earned leaves in one calendar year,
then the unused earned leaves will get carried forward to the next year. However,
there is a limit to the number of leaves that can be carried forward to the next year.
Every employer, depending on the state and region, has different carry-forward rules.
The maximum number of leaves that can be accumulated is 30 days. However,
according to The Shops and Establishment Act, it can go up by 45 to 60 days,
depending on the policy of the states.
 The accumulated or unused leaves get automatically encased if they exceed the limit
or when the employee leaves the organization. The encashment procedure depends
on the company leave policy in India.
 The formula to calculate encashable earned leaves is:
Amount encased = monthly gross salary * accumulated encashable leaves / 22
 The encashment of leaves while in service is entirely taxable as per the law. Any
leave encashment payment received by state and central government employees
during retirement is 100% exempt from any taxes. In all other cases, the exemption
amount is limited.

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5.8 Employee safety mechanisms:

5.8.1 Provide Health and Safety Training for All Staff:

Just as business owners and CEOs are aware of their obligations toward their employees,
workers must be aware of their own responsibilities when it comes to ensuring safety at work.
Teaching employees effective personal strategies they can implement themselves is one
effective way of motivating staff. Emphasize that employee safety is a priority by providing
new trainees with health and safety training in their first week of work.

5.8.2 Promote Engagement and Participation from Workers:

Encouraging employee engagement and participation are key aspects in promoting and
growing a positive safety culture in your workplace. A healthier and safer workplace
increases employee job satisfaction, productivity, and business performance.

Involve your employees in shaping a safer, risk-free working environment. Encourage them
to suggest practical solutions to maximize safety. Workers are on the floor day in, day out,
making them ideally positioned to notice hazards.

Employee-suggested solutions are often straightforward, effective, cost-efficient, and easy for
employers to implement. Urge workers to get involved and speak up about workplace safety
issues. Ask that they tell you what’s working and what isn’t. Emphasize that, by reporting
hazards, employees are making their workplace safer for themselves and their workmates.

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5.8.3 Designate Health and Safety Representatives:

CEOs and business owners are not always present in the workplace, so don't know firsthand
about new hazards that may arise. Information on safety issues needs to be passed to those in
charge, which, for various reasons, some workers are reluctant to do.

By designating a health and safety representative, employees can confidently and discreetly
(and, if necessary, anonymously) discuss their concerns with this person. The representative,
who acts as a trusted intermediary between CEO or owner and employee, can relay these
matters to the employer at regular meetings to ensure the health and safety of employees in
the workplace is a top priority at all times.

5.9 Promotions:
According to Pigours and Myers, ‘Promotion is advancement of an employee to a better job –
better in terms of greater responsibility, more prestige or status, greater skill and especially
increased rate of pay or salary”.

Arun Monappa and Mirza S Saiyadain defined promotion as “the upward reassignment of an
individual in an organization’s hierarchy, accompanied by increased responsibilities,
enhanced status and usually with increased income though not always so”.

Conditions of promotions are:

 Reassignment of higher level job to an employee than what he is presently

performing
 The employee will naturally be delegated with greater responsibility and authority
than what he has had earlier. Promotion normally accompanied higher pay. It means
in some cases, the employee perform higher level job and receive the salary related
to the lower level job.
 Promotion may be temporary or permanent depending upon the organizational needs
and employee performance.

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5.10 Transfer:

“a lateral shift causing movement of individuals from one position to another usually without
involving any marked change in duties, responsibilities, skills needed or compensation”

Transfer is defined as “… the moving of an employee from one job to another. It may involve
a promotion, demotion or no change in job status other than moving from one job to another”.

Reasons:
1. Unsuitability of the employee to higher level jobs
2. Adverse business conditions
3. New technology and new methods of operation
4. On disciplinary actions

5.11 Specific HR Policies:

Some laws require employers to communicate workplace information to employees in

writing. In the absence of a specific requirement, employers should also implement policies
that communicate company expectations and benefits. While the contents of your company's
handbook will depend on a number of factors, including your company's size, industry, and
location, consider including these key policies.

5.11.1 At-will employment:

This statement reiterates that either you or the employee can terminate the employment
relationship at any time and for any reason, as long as the reason is a lawful one. It is a best
practice to prominently display this statement in the beginning of your employee handbook
(except in Montana, where at-will employment is not recognized). Reinforce at-will status in
your handbook acknowledgment form as well.

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5.11.2 Anti-harassment and non-discrimination:

These policies prohibit harassment and discrimination in the workplace. Non-discrimination

laws are governed by federal, state and local provisions, so review your applicable law and
account for all appropriate protections.

5.11.3 Employment classifications:

It is a best practice to clearly define employment classifications, such as full-time, part-time,

exempt or non-exempt since an employee's classification can dictate eligibility for benefits
and overtime pay.

5.11.4 Leave and time off benefits:

These policies address a company's rules and procedures regarding holidays, vacation, sick,
and other types of time off benefits, or leave required by law (such as voting leave, family
leave, and domestic violence leave) or company policy. Check your state and local law to
ensure all leave requirements are included in your employee handbook.

5.11.5 Meal and break periods:

A policy on meal and break periods informs employees of the frequency and duration of such
breaks as well as any rules or restrictions related to break periods. Rest periods, lactation
breaks, and meal periods must be provided in accordance with federal, state and local laws.

5.11.6 Timekeeping and pay:

A timekeeping policy informs employees of the method for recording time worked and the
importance of accurately recording their time. A policy on paydays lets employees know the
frequency of paydays, the methods available for receiving pay, and any special procedures for
when a payday falls on a holiday or when an employee is absent from work.

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5.11.7 Safety and health:

Safety policies describe safety and emergency procedures and require employees to report
work-related injuries immediately. Additionally, some regulations under the Occupational
Safety and Health Act require employers to have specific policies and programs in place if
certain workplace hazards exist (such as a hazard communication program if certain
chemicals are present in the workplace).

5.12 Specific HR Policies:

Modern Methods & Types of Performance Appraisal

1. Graphic Rating Scale Method

2. Ranking Method
3. Checklist Method
4. General Performance Appraisal in HRM
5. Technological Performance Appraisal

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5.13 Employee Feedback Mechanism:

Before we dive into the overall strategy, let’s look at the specific definition of feedback and
what makes it most effective.
Employee feedback is defined as a process of giving constructive suggestions to the
employees by their reporting managers, supervisors and peers. However, this process is not
just restricted here, employee feedback also comprises of the feedback that the employee
would want to give to his/her manager, peers or the organization as a whole.

Feedback can help employees and the organization constantly get better at what they do.
Employee feedback is an integral part of the employee experience process and a mechanism
that will increasingly help employees get better at their job and for the organization to
develop a better workplace culture.

According to Forbes, 73% of employees consider feedback important but only one third
receive it. Most managers don’t provide enough feedback and when they do they tend to
make it negative or too vague and the importance of feedback is lost. As simple as it may
sound giving feedback is not easy. It is a systematically designed process, because of the
complexities involved- Humans!

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4.1 Balance Sheet

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4.2 Profit & Loss Account (PNL)

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4.3Ratio :

 Current Ratio :

Current Assets
Current Ratio =
Current Liabilities

1,59,367 71,372
F.Y 2022 = F.Y 2021 =
1,48,629 71,630

= 1.0722 = 0.996

Variance = 7.61%

 Interpretation:The company current ratio in the year 2021 is 1.07:1 which good
but in the year 2022 company has shows more improvement in their ratio which
is increased up to 1.00:1 which is very near to ideal ratioandvariance is 7.16%.

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 Gross Profit Ratio :

Gross Profit
Gross Profit Ratio = ×100
Sale

F.Y 2022 F.Y 2021

Revenue From Operations 5,43,041 4,81,658
Raw Material Consumed (USED) − 4,99,694 3,92,427
Change In Inventories (F.G) + (64,252) (887)

Gross Profit 1,07,59990,118

1,07,599 90,118
F.Y 2022 = ×100F.Y 2021 = 4,81,658×100
5,43,041

= 19.81% = 18.71%

Variance = 5.87%

 Interpretation:In this ratio show that in the year 2021 G.P ratio is 18.71%, While
in year 2022 ratio increased up-to 19.81% that show company is trying to improve
their gross profit ratio and variance is 5.87%.

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 Net Profit :

Net Profit After Tax

Net Profit = ×100
Sale

7568 4008
F.Y 2022 = ×100 F.Y 2021 = ×100
5,43,041 4,81,658

= 1.39% = 0.8321%

Variance = 67.49%

 Interpretation:In the year 2021 the net profit ratio of the company was 0.83%, in
the year 2022 the ratio is 1.39% shows that company is trying to improve their
gross profit ratio and variance is 67.49%.

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 Return On Assets Ratio :

Net Profit After Tax

Return on Assets Ratio =
Total Assets

7568 4008
F.Y 2022 = F.Y 2021 =
2,13,621 1,20,303

= 0.035 = 0.0333

Variance = 6%

 Interpretation:In this ratio show that in the year 2021 return on assets ratio is
0.033, While in year 2022 ratio increased up-to 0.035 that show company is trying
to improve their return assets ratio and their variance is 6%.

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 Equity Ratio :

Shareholder Equity
Equity Ratio =
Capital Employed

Capital Employed = Shareholder Fund + Non Current Liabilities

F.Y 2022: 23,174 + 41,817 = 64,991

F.Y 2021: 15,606 + 33066 = 48,672

23,174 15,606
F.Y 2022 = F.Y 2021 =
64,991 48,672

= 0.356= 0.320

Variance = 11.41%

 Interpretation:This ratio indicates that 0.320 in F.Y 2021 and 0.356 in F.Y2022
of the capital employed is Equity share capital.

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 Net Working Capital Ratio :

Net Working Capital

Net Working Capital Ratio =
Total Assets

Net Working Capital= Current Assets − Current Liabilities

F.Y 2022 : 1,59,367 − 1,48,627 = 10,738

F.Y 2021 : 71,372 − 71,630 = (258)

10,735 (258)
F.Y 2022 = F.Y 2021 =
2,13,621 1,20,303

= 0.050 = 0.0021

Variance = 22.81%

 Interpretation:In this ratio show that in the year 2021 net working capital ratio is
0.0021, While in year 2022 ratio increased up-to 0.050 and their variance is 6%.

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4.4Accounting process:

1 – Identify the Transaction

Identifying the business transaction is the initial step in the process of accounting. The
business entity has to identify financial and monetary transactions. Therefore, only those
transactions that are monetary are recorded. Also, the transactions that belong to the business
are to be recorded, and not the owner’s transactions are included in the books of accounts of
the business.

2 – Recording of the Transactions in the Journal

After identifying the transactions, the second step of the accounting process is to create the
Journal entry for every accounting transaction. The point of recording transactions is based
on the policy followed by the entity for accounting, i.e. accrual basisor cash basis of
accounting. In the accrual basis of accounting, the revenues and expenses are recorded in the
entity’s books in the period when they are earned and incurred, respectively, regardless of the
actual cash receipt and payment. However, in the case of cash accounting, the transactions are
recorded only when the actual cash is received/paid. In a dual entry system, every transaction
affects at least two accounts, i.e., one account is debited, and another account is credited. For
example, if the purchases are made in cash, the purchases account will be debited (purchases
increase), and the cash account is credited (cash decreases).

3 – Posting in the Ledger

After recording the transaction in the Journal, the individual accounts are then posted in the
general ledger. t helps the owner/accountant know each account’s balance individually. For
example, all the debits and credits of the bank account are transferred to the ledger account,
which helps to know the increase and decrease in bank balance during a period. Finally, we
can determine the ending bank balance from it.

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4 – Unadjusted Trial Balance

The company’s trial balance is prepared to check whether the debits are equal to the credits or
not. The trial balance’s main purpose is to identify any errors made during the above process.
The trial balance reflects all the accounts balances at the given time. After the preparation of
the trial balance, it is checked that the total of all credits is equal to the total of all debts, and
if the total is not the same, then an error is to be identified and corrected. There can be other
reasons for the error, but firstly, an accountant

tries to locate the error by preparing the trial balance. Also, trial balance helps to know the
balances of all accounts in a summarized form.

5 – Adjusting Journal Entries

When the accrual basis of accounting is followed, some of the entries are to be made at the
end of the accounting year, such as entries of expenses that may have been incurred but are
not booked in the Journal and entries of some income that may be earned by the business but
are not yet recorded in the books. For example, the interest amount on a fixed deposit is
earned each year, but it is accumulated in the fixed deposit amount. This interest income is to
be recorded in the books of accounts yearly because the interest is earned yearly, no matter
the amount will be received together after the maturity of the fixed deposit.

6 – Adjusted Trial Balance

After all the adjusting entriesare made, again, a trial balance is to be prepared before
preparing the financial statements to check that all the credits are equal to the debits after the
adjustment entries are made.

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7 – Preparation of Financial Statements

After all the above steps are completed, the financial statements of the company are prepared
to know the actual financial position, the profitability position, and the cash flow position of
the business. The statements that are prepared for knowing the above positions are a
statement of profit and loss for knowing the profitability position, the balance sheet for
getting the financial position, and the cash flow statementto know the changes in cash flows
from the three activities of the business (operating, investing and financing activities).

8 – Closing Entries

Finally, the accounting cycle ends with this step. These entries transfer the temporary account
balances to a permanent account. The temporary accounts are the accounts whose balances
end in a single accounting year, such as sales, purchases, expenses, etc. These balances are
first transferred to the income statement and then to the permanent account, i.e., the
profit/loss is transferred to the retained earningsaccount. It should be cleared that only
temporary accounts are closed, not the permanent ones (accounts that are balance sheet
accounts such as fixed assets, debtors, inventory, etc.)

After closing entries are made, the trial balance is again prepared to check that the debit
equals the credit, and the accounting cyclestarts again with the beginning of another
accounting year.

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6.1 Purchase Procedure:

6.1.1 Determining Purchase Budget:

Purchase Manager prepares a purchase budget for the forthcoming financial year. Purchase
budget is prepared with the help of production planning department. It contains detailed
information regarding quantity to be purchased, quality of materials, time of purchase and the
sources of procurement. A schedule of materials and components needed for various jobs,
known as bill of materials, is also prescribed for working out details of purchase budget. A
bill of materials is also useful in exercising control over the utilization of materials.

6.1.2 Receipt of Purchase Requisition:

The purchase officer initiates action for the purchase of materials only when he receives a
request for the same. The store-keeper and departmental heads send requisition slips to
purchase department giving details of materials required by their departments etc. A purchase
requisition is a form used as a formal request to the purchasing department to purchase
materials.This form is prepared by the store keeper for regular stock materials and by the
departmental head for specific materials not stocked as regular items. The store-keeper knows
when an action or fresh procurements is to be initiated. He will send the requisition when
materials reach re-ordering level. He retains one copy of the requisition with him for future
reference .It is on the basis of purchase requisition that orders are placed for materials.

6.1.3 Determining Sources of Supply:

Purchase Manager remains in touch with various suppliers of materials. The quotations are
invited for the purchase of specific items. After receiving quotations a comparative study is
made regarding terms and conditions offered. The factors to be considered include price,
quantity, quality, time of delivery, terms of payment, trade discount and reputation of
suppliers. After looking at various factors a final decision is taken about the supplier of
goods.

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6.1.4 Placing Order:

After selecting a supplier a formal purchase order is sent for the supply of goods. A purchase
order is sent on a printed form and is duly authorized by the purchase manager. This order
should contain details about the quantity, quality, price, mode of delivery, terms of payment
etc. The purchase order authorizes

the vendor to despatch goods specified in it. It establishes a contractual relation between the
buyer and the vendor.

6.1.5 Follow-Up of Purchase Order:

A purchase order normally bears a date by which the goods must be delivered It is in the
interest of the organization that goods are received in time for keeping uninterrupted flow of
materials. The suppliers may be reminded of the date of delivery of goods. A follow-up of
purchase order is necessary to receive stocks in time.

6.1.6 Receipt and Inspection of Materials:

In big concerns the task of receiving materials is assigned to the purchase department
whereas in small concerns this work is done by the store keeper. After unpacking goods their
quantity is compared to that given in delivery challans. Any discrepancy in items is reported
to the purchase department. The specifications and quality of goods is also checked at this
stage.

6.1.7Checking Invoices:

Lastly, purchase department checks the invoices supplied by the vendor with that of its own
records. The quantity, quality, price, terms etc. are compared with those given in purchase
order. After making full checking the invoices are sent to accounts department for payment.

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6.2 Purchas Leading. time:

Purchasing lead time is the interval between when the decision is made to acquire goods and
when the goods are received. This lead time is comprised of order preparation time, supplier
lead time, the time in transit from the supplier to the recipient, inspection time, and
putawaytime. One of the best ways to improve the performance of a business is to reduce its
purchasing lead time, so that it can be more responsive in making its own deliveries to
customers.Vastu company lead time is 15 days.

How to Use Purchasing Lead Time

Purchasing lead time must be built into the order placement process, so that goods are
ordered sufficiently far in advance to assure that they are received in time for their intended
use. Consequently, purchasing lead time is quantified in a material requirements planning
system. Without due consideration of this lead time, a company will suffer from ongoing
product stockout conditions, as well as production runs that cannot be completed due to
missing parts. This is a particular concernduring periods of peak demand, when it may be
necessary to increase quantities on hand in order to ensure that customer demand can be met.

6.2 Ordering Costs:

Cost of procurement and inbound logistics costs form a part of Ordering Cost. Ordering Cost
is dependant and varies based on two factors - The cost of ordering excess and the Cost of
ordering too less.

Both these factors move in opposite directions to each other. Ordering excess quantity will
result in carrying cost of inventory. Where as ordering less will result in increase of
replenishment cost and ordering costs.

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These two above costs together are called Total Stocking Cost. If you plot the order quantity
vs the TSC, you will see the graph declining gradually until a certain point after which with
every increase in quantity the TSC will proportionately show an increase.

This functional analysis and cost implications form the basis of determining the Inventory
Procurement decision by answering the two basic fundamental questions - How Much to
Order and When to Order.

How much to order is determined by arriving at the Economic Order Quantity or EOQ.

6.3 Carrying Cost:

Inventory storage and maintenance involves various types of costs namely:Inventory Storage
Cost ,Cost of Capital.

Inventory carrying involves Inventory storage and management either using in house
facilities or external warehouses owned and managed by third party vendors. In both cases,
inventory management and process involves extensive use of Building, Material Handling
Equipments, IT Software applications and Hardware Equipments coupled managed by
Operations and Management Staff resources.

6.3.1 Inventory Storage Cost:

Inventory storage costs typically include Cost of Building Rental and facility maintenance
and related costs. Cost of Material Handling Equipments, IT Hardware and applications,
including cost of purchase, depreciation or rental or lease as the case may be. Further costs
include operational costs, consumables, communication costs and utilities, besides the cost of
human resources employed in operations as well as management.

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6.3.2 Cost of Capital:

Includes the costs of investments, interest on working capital, taxes on inventory paid,
insurance costs and other costs associate with legal liabilities.

The inventory storage costs as well as cost of capital is dependent upon and varies with the
decision of the management to manage inventory in house or through outsourced vendors and
third party service providers.

Current times, the trend is increasingly in favor of outsourcing the inventory management to
third party service provides. For one thing the organizations find that managing inventory
operations requires certain core competencies, which may not be inline with their business
competencies. They would rather outsource to a supplier who has the required competency
than build them in house.

Secondly in case of large-scale warehouse operations, the scale of investments may be too
huge in terms of cost of building and material handling equipments etc. Besides the project
may span over a longer period of several years, thus blocking capital of the company, which
can be utilized into more important areas such as R & D, Expansion etc. than by staying
invested into the project.

6.4 General details about purchase department:

All businesses need specific goods, materials and equipment to manufacture products,
offer goods for sale to customers, or perform the services they are selling. Someone has to
ensure that these good sale bought in to the company, in the right volume and at the right
time, to meet the company's requirements. That role falls to the purchasing, or purchase,
department.

The role itself is a broad one, covering such areas as market analysis, negotiations with
suppliers and producers, transport, storage options, procurement technologies and order
times to ensure that goods are bought as economically and time-efficiently as possible.
Specific functions include.

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6.5 List of Suppliers:

Name of Supplier of enterprise:

1.Marvin Patoliya
2.HareshBhai
3.HashmukhBhai

4.JagdishBhai

5.DeviLal

6.AmitBhai

7.HardikBhai

6.6 Any other company specific detail:

“Shree Radhe Dairy Farm & Foods Ltd.” is a distinguished manufacturer few iderange of
Cow Ghee and Buffalo Ghee. Founded in the year 2015, we are a renowned company that
is incepted with an objective of providing high quality and pure ghee in various quantities
within scheduled time period. Situated in Surat (Gujarat, India), we process ghee in
accordance with set industry norms. Under the headship of “Mr. Ridhesh Lakkad”
Manager, we have gained huge clientele in our country

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Bibliography

https://vastudairy.com/

Chairman:-Bhupat Sukhadiya

Vice President:-Bhautik Virani

Finance Management:-Bhavik Dobariya

HR management:-Bansari Dodiya

Marketing Management:-Anil Kanojiya

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Conclusion

After completing our summer training at Shree Radhe Dairy Farm and Foods Ltd. I would
like to acknowledge the fact that this experience has helped me gain practical exposure
about fundamentals of any business and especially FMCG Dairy business. The brand
Vastu is a long way to go, on its mission of “Penetrating each home of India” working on
its mantra of “Surity for Purity” and giving excellent services to its channel partners
satisfying the customers with its non compromising quality standards. It is evident from
this study and Shree Radhe Dairy products is advised to maintain its quality on its products
so as to retain this stage forever. The study has been successful in knowing the dealers’
satisfaction with Vastu Ghee.

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3.16 Survey Report

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