Professional Documents
Culture Documents
A PROJECT REPORT
Submitted TO THE J.N.T.U, HYDERABAD IN
PARTIAL FULFILLMENT FOR
THE AWARD OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Submitted By
Buddhudev Kondaveeti
(Reg. No: 08d41e0010)
CERTIFICATE
This is to certify that Buddhuev Kondaveeti student of final year MBA in the
department of management of studies of Sri indu college of Eng &
Technology has under gone project on “WORKING CAPITAL With
Reference to SANGAM DAIRY, VADLAMUDI, GUNTUR”, under our
guidance.
Place :
Date :
GUIDE
Sri Indu College Of Engineering & Technology
Approved by AICTE, New Delhi, Affliated to JNTU, Hyderabad.
Sponsored by New Loyola Model Education Society, Vanasthalipuram, Hyd.
Sheriguda (village), Ibrahimpatnam, Ranga Reddy District -501510
CERTIFICATE
Place :
Date :
Technology, Sheriguda. I also declare that this project work is the result of
my own effort and that it has not been submitted to any other University for
PLACE: K.Buddhudev
DATE : Reg.no.08d41e0010
INTERDUCTION
There was an increasing demand for the milk from the urban areas.
There arose a need for the formers to increase the production of milk. Since
the demand in the urban scenario is rapidly increasing. So do the farmers
generate the supply to further the new dairy plant capacity approved under the
milk and milk products order (MMPO) has exceeded 100 million I/p/d. the
projected rural marketable surplus of milk by about 70 percent by 2009.
GROWTH OF SANGAM DAIRY:
Origin:
GROWTH OF INDUSTRY:
Before the independence i.e. in the first half of the 20th century India has
largely unorganized milk and its products which were generally not easily
marketable commodities and there was no proper transportation facilities for
these products to reach for distances. “Organized” as well understand in the
west started in a small way in military. These was established towards the end
of 19th century to meet 5% demand of the military forces and hospitals some
( dairies) have been encouraged to make pasteurized butte primarily for the
use of British Army. In 1923 a dairy was established in Bangalore. There has
been another major effort in the early 1940’s where milk produced in rural
areas of Kaira district was collected in bulk quantities and transported by
distributing in Bombay (now Mumbai) through the help of Bombay milk
scheme operated by Bombay Municipality. Where India became Independence
in 1947, one of the major milk schemes to be included in the country was
Great Bombay Milk Scheme (GBMS).
During the past four decades the dairy industry in India was undergone
evolutionary changes in Its structure. Now India is the largest Milk production
unit in the world. The methods of collection, marketing and utilization of milk
for manufacturing products have been considerably improved.
Depending on the nature and the time period for which the working
capital is held is the organization it can be classified as permanent working
invariable working capital exclusive working capital is of vital importance to
companies and for which a major work load to the head of finance working
capital on day-to-day basis here forms have importance issue of any business
management of working capital therefore is the management of current
liabilities of the company. Decision on working capital, therefore is the
management of current assets and current liabilities of the company Decision
like economic situation Government industrial and fiscal policies and
availabilities of in visible funds etc…
The scope of the present study extends to analogues the working capital
operations carrying out by the Sangam Dairy.
In the next step an attempt has been made to highlight the present scenario of
the dairy industry in the India market in particular.
• To review the growth and working of dairy during the last 6 years i.e,
from 2001 to 2007.
• Most of the figures in Ana lugged of working capital were rounded off
where ever necessary to avoid ambiguities.
METHODOLOGY:
1. Primary Data
2. Secondary Data
Primary data comprises information obtained by the candidate during
discussion with the head of department and form the meetings the officials and
the staff the meetings with the officials and the staff.
2. Financial accounting does not take into account the price level changes
become some what difficult to form an overall judgment about the
financial strength this and weakness of the firm.
3. When the firm has some favorable rations and some unfavorable rations
its financial strengths and weakness of the firm
There was an increasing demand for the milk from the urban areas.
There arose a need for the formers to increase the production of milk. Since
the demand in the urban scenario is rapidly increasing. So do the farmers
generate the supply to further the new dairy plant capacity approved under the
milk and milk products order (MMPO) has exceeded 100 million I/p/d. the
projected rural marketable surplus of milk by about 40 percent by 2005.
EVOLUTION:
The origin of dairy farms are under public management dates back to 1886.
when the department of defense establish a few dairy farms in that year to
supply milk and milk products to the British troops, the next step was initiated
during the first World war.
CHAPTER- 3
COMPANY PROFILE
BRIEF HISTORY:
…… Marketing Manager
Organization Chart
Board of directors
Chairman
General Manager
Manager
Dairy Manager
Supervisors
Workers
The current assets refer to those assets, which in the ordinary course of
business can be converted into cash within one year without undergoing a
diminution in value. Current liabilities are those liabilities, which are intended
at the inception, to be paid in the ordinary course of business, within a year,
out of current assets.
The basic objective of working capital management is to put current assets to
optimum use for overall profitability of a business enterprise. If the firm can't
maintain a satisfactory level of working capital it is likely to become insolvent
and may even be forced to bankruptcy.
The effective management of working capital requires both medium
term planning and intermediate reactions to changes in forecast and
conditions. The current assets should be managed in such a way that it should
cover its current liabilities in order to ensure a reasonable margin of safety.
Therefore the interaction, between the current assets and current liabilities is
the main theme of the theory of working capital management.
The term gross working capital is referred to total current assets. The
net working capital is again defined in two ways
[1] net working capital is the difference between current Assets and current
liabilities
[2] net working capital is that portion of current assets, which is financed with
long-term funds.
TRADE OFF:
To get higher profits the firm has to face high risk. Otherwise the more
the profit, the more the risk the firm has to face. The trade-off between these
variables that the regardless of how the firm increases its profitability through
the manipulation of working capital, the consequence is the corresponding
increase in risk as measured by the level of NWC.
Nature of business
The working capital needs of the firm are related to its sales. It is
difficult to precisely determine the relationship between volume of sales and
working capital needs. In practice current assets have to be employed before
growth takes place it is therefore Necessary to make advance planning of
working capital for a growing firm on a Continuous basis.
Seasonal fluctuations not only affect working capital requirement but also
create production problems for the firm. During periods of peak demand,
increasing production may be expensive for the firm. Similarly, it will be more
expensive during slack periods when the firm has to sustain its working force
and Physical facilities with out adequate production and sales.
The manufacturing cycle comprises of the purchase and the use of raw
materials and the production of finished goods. Longer the manufacturing
cycle, large will be the firm's working capital requirements. If there are
alternative technologies of man fracturing cycle may be chosen. Once a
manufacturing technology has been selected, It should be ensured that
manufacturing cycle is completed within the specific Period. This needs
proper planning and co-ordination at all levels of activity.
Sometimes the current assets are very larger than fixed assets, and then
the company’s problem of working capital management arises. The magnitude
of the current assets need is not always the some, it increase or decrease over
times.
So there must be always a minimum level of current assets which
continuously required by the firm to carry on its business operations, that
minimum level of current assets are referred to permanent or fixed working
capital. It is required to meet the dairy business operations like business and
maintaining of inventory etc, the extra working capital needed to support the
changing production and sales activities called as fluctuation or temporary or
variable working capital.
If the cycle takes a very long time, the working capital requirement is very
high and if the cycle takes a short time working capital requirement is less.
W.C.High
W.C.Low
AVAILABILITY OF CREDIT:
The working capital requirements of the firm are also effected by credit
terms granted by its creditors. A firm will need less working capital if liberal
terms are available to It. Similarly, the availability of credit from banks also
influences the working capital Needs of the firm. A firm, which can get bank
credit easily on favorable conditions, Will Operate with less working capital
than a firm without such a facility.
Price level Changes:
OPERATING EFFICIENCY:
After establishing the level of current assets, the firm must determine
how these should be financed. What mix of long-term capital and short- term
debt should the firm employ to Support its current assets.
The investment in current assets may be broken into two parts i.e.
permanent current Assets and temporary current assets. Several strategies are
available to a firm for financing its capital requirements. Following are three
strategies namely A, B and C.
Strategy A: long term financing is used to meet fixed assets requirements as
well Peak working capital, requirement when the working capital requirement
is less than its peak level, the surplus is invested in liquid assets.
Strategy C: Long term financing is used to meet fixed asset requirement and
permanent Working capital requirement. Short-term financing is used to meet
working capital requirement.
Ratio of Current Assets to fixed assets:
A policy which indicates the size of current assets to fixed assets is called as
current assets policies.
If the company is maintaining the current assets more than fixed assets it is
known as “Conservative Policy”.
Current Assets
Fixed Assets
Current Assets
Fixed Assets
The company have to figure out the right current assets policy because
liquidity and the profitability. If the company wants to be safe , if keeps the
current assets very high i.e. liquidity. But the companies which keep liquidity
will end up with low profitability.
If the investment is low i.e. current assets are low , liquidity will be low but
the profitability will be very high.
High liquidity low profitability, low liquidity high profitability is consistent
assets will be moderately equal to the fixed assets.
sOUT PUT
(OR)
SALES
If we see the moderate policy in graph it is neither commiserative nor
aggressive.
1. Conservative Policy.
i. Reduction in Risk
ii. Less expected profit.
iii. Reduction in technical insolvency
2. Aggressive Policy:-
i. Increase in Risk
ii. Profitability is extremely high
iii. Technical insolvency is High
The policy which uses either short term investment or Long term investment
to raise current assets is called as “ Current Assets Financing Policy” this
policy can be broadly divided in to two categories.
TIM
If the costs of liquidity is very high the profitability of he company will
be very less and vice versa.
Working capital has two types of costs of liquidity and the other one’s
cost of liquidity higher the liquidity and higher the cost of liquidity and vice-
versa.
If the money is financed to long term is more and the current assets is
less it is called as Illiquidity.
The total cost function takes the usual “ U” Shape. The higher the level
of the current assets the lower is the possibility and as such lower is the cost of
Illiquidity.
The long-term working capital requirements can be met from the following
sources.
1. Issue of Shares:
It is the safest way of procuring permanent and regular working capital
without any fixed charges.
2. Issue of Debentures:
Regular and long term working capital may be obtained at lower cost of trade
on equity.
3. Retained Profits:
Accumulated large profits are also considered to be a good source of financing
long-term working capital requirements. It is the best and the cheapest source
of finance. It creates no change in future profits.
5. Term Loans:
Mid term and long-term loans for a period above 3 years provide import
sources of working capital such term loans can be borrowed from the special
financials institutions such as IDBI, IFCI, LIC etc.
Internal Sources:
Under this category the sources of working capital are tapped from
within the internal sources are depreciation funds, provision for taxation and
accrued expenses.
1. Depreciation Fund:
Depreciation funds created out of profits provided they are invested in or
represented by assets.
2. Provision for Taxation:
There remains a time lag between making the provision for and payment of
taxation. A company may utilize such provision during the intermittent period
temporarily.
3. Accrued Expenses:
The company sometimes postpones the payment of certain expenditure due to
finalization of the accounts. These accrued (due but not paid) expenses also
constitute an important source of working capital.
External Sources:
2. Credit Papers:
Bills payable or promissory note, which may be discounted from bankers for
meeting short term capital by the drawer.
3. Bank Credit:
Inventory Management:
Nature of these inventory items like raw material, spare parts etc., that there is
a tendency to a accumulate that means managers often by these in large
quantities which is of no use. Industries often suffer from industrial concur
because of inventory and it is said to be Grave yards of industry because of a
accumulation Inventory carrying cost (ICC) are a big problem. They are the
costs that the company has to incur in order to carry the inventory items over a
period of time ICC costs are depreciation insurance, were house expenses
interest etc.,
“A” is high categorized items “B” is moderate Valued items and “C” is the
Low valued items.
By seeing the graph, the manager likes to concentrates on “A” items. Some
times even though the trivial items last, there will be no harm for the
company. Some times, the companies 20% of total goods fetches it 80% of
sales.
Cash Management:
Cash planning:
Cash inflows and out flows should be planed to project cash surplus or deficit
for each period of the planning period.
The cash inflows should be properly accelerated and cash out flows should be
declared.
The ideal cash management system will depend on the firm’s products,
organization, structure, competition, culture and options available.
With reference to cash management, the team cash is used into two
senses., they are narrow sense and broad sense. In narrow sense, it is used to
broadly cover currency and generally accepted equivalents of cash, such as
cheque, drafts and hundies in banks. The board view of cash also included
cash assets such as market marketable securities and time deposit in banks.
There are four primary motives for maintaining cash balances. They are
1. Transaction motive
2. Precautionary motive
3. Speculative motive
4. Compensation motive
Transaction Motive:
To meet payments such as purchases, wages, taxes and dividends arising in
the ordinary course of business.
KEYNES said that money demand is said to be proportional ( k) to income
MDT = k( Y )
Percentage Motive:
Speculative Motive:
Compensating Motive:
The firm’s efforts to get customers to pay their bills at certain time fall
within accounts receivable management. On the other hand, the firms,
decision about when to pay its bills that involve accounts payable and accrual
management. The various collection and disbursement methods by which a
same coin. They exercise a joint impact on the overall efficiency of cash
management. The idea is to collect accounts receivable as soon possible, but
pay accounts payable as late as consistent with maintaining the firm’s credit
standing with the suppliers.
Collection process
PAYABLE MANAGEMENT
Computing the average age of payables can do this. This may be calculated by
any of the following methods.
The most common ratios which indicate the extent of liquidity or lack of it are
(i) Current ratio and (ii) Quick ratio, other ratios include cash ratio, interval
measure and networking capital ratio.
Current Ratio:
Current assets include cash and those assets which can be converted
into cash within a year, such as marketable securities, debtors and inventories.
Prepaid expenses are also included in current assets as they represent the
payments that will not be made by the firm in the future. All obligations
maturing within a year are included in current liabilities. Current liabilities
include creditors, bills payable, accured expenses, short-term bank loan,
income-tax liability and long-term debt maturing in the current year.
Quick Ratio:
Since cash is the most liquid asset, a financial analyst may examine
cash ratio and its equivalent to current liabilities. Trade investment or
marketable securities are equivalent of cash, therefore, they may be included
in the computation of cash ratio.
Cash in Hand
Cash ratio = ---------------------
Current Liabilities
Activity Ratios:
Inventory turnover ratio indicates the efficiency of the firm in producing and
selling its products. It is calculated by dividing the total sales by the average
inventory.
Total Sales
Inventory Turnover
Average Inventory
TABLE-1
(Rs.In lakhs).
B Current liabilities
Deposits 320.84 329.68 8.84 ----
Suspense 39.04 12.75 ---- 26.29
Sunday creditors 513.38 542.95 29.57 ----
Outstanding 40.28 43.24 2.96 ----
expenses
Profits&loss 5.47 3.89 ---- 1.58
adjustment accounts
Total current 919.01 932.51 13.5 ----
liabilities
TABLE-1A
(Rs.In lakhs)
SOURCE Rs. APPLICATION Rs.
Net decrease in 79.10 ----------------- -----
working capital
Funds from operation 2.20 Purchase of fixed assets 81.30
Total 81.30 Total 81.30
TABLE-2
(Rs.In lakhs)
A Current assets
Cash in hand 2.80 2.41 ---- 0.39
Cash in bank 204.38 962.32 757.94 ----
Postage 0.01 0.01 ---- ---
Closing stock 2336.96 2129.49 ---- 207.47
Sunday debtors 604.73 322.53 --- 282.20
Advance 208.09 243.41 35.32
&deposits
Total current 3356.97 3660.17 303.2 ----
Assets
B Current
liabilities
Deposits 329.68 336.52 6.84
Suspense 12.75 23.31 10.56 ----
Sundry creditors 542.95 505.54 ---- 37.41
Outstanding 43.24 36.29 ---- 6.95
Expenses
Profit & loss 3.89 3.90 0.01 ----
Adjustment
Account
Total current 932.51 905..56 --- 26.95
liabilities
TABLE -2A
(Rs.In lakhs)
SOURCE Rs. Application Rs.
---- --- Net increase in 330.15
working capital
Funds from 349.42 Purchased of 19.27
operation fixed assets
Total 349.42 Total 349.42
B Current liabilities
Deposits 342.22 344.70 2.48
----
Suspense 25.64 24.94 ---- 0.70
Sundry creditors 30.93 57.54 26.61 -----
Outstanding 540.46 399.15 --------
Expenses 141.31
Profit& loss 25.41 4.38 ----- 21.03
adjustment
account
Total current liabilities 964.66 830.71 --- 133.95
TABLE -3A
(Rs.In lakhs)
SOURCE Rs. APPLICATION Rs.
Net decrease in 120.24 ------ ----
working capital
Funds from 4.89 Purchased of 125.13
operation fixed assets
Total 125.13 Total 125.13
(Rs. In l akhs)
B Current liabilities
Deposits 342.22 344.70 2.48
----
Suspense 25.64 24.94 ---- 0.70
Sundry creditors 30.93 57.54 26.61 -----
Outstanding 540.46 399.15 ------- 141.31
Expenses
Profit& loss 25.41 4.38 ------ 21.03
adjustment
account
Total current liabilities 964.66 830.71 --- 133.95
TABLE -4A
(Rs.In lakhs)
SOURCE Rs. APPLICATION Rs.
Net decrease 127.30 ------ ----
working capital
Funds from 2.97 Purchased of 130.27
operation fixed assets
Total 130.27 Total 130.27
(Rs. In l akhs)
B Current liabilities
Deposits 344.70 349.70 4.97
----
Suspence 24.94 27.10 2.16 ---
Sundry creditors 57.54 12.18 ---- 45.36
Outstanding 399.15 362.52 ------ 36.63
Expenses
Profit& loss 4.38 5.10 0.72 ----
adjustment
account
Total current liabilities 830.71 756.57 --- 74.14
(Rs.In lakhs)
(Rs. In l akhs)
B Current liabilities
Deposits 349.70 342.22 ----- 7.48
Suspence 27.10 25.64 ----- 1.46
Sundry creditors 12.18 30.93 18.75 -----
Outstanding 362.52 540.46 177.94 ------
Expenses
Profit& loss 5.10 25.41 20.41 ----
adjustment
account
Total current liabilities 756.57 964.66 208.09 -----
TABLE -6A
SANGAM DAIRY FOR THE YEAR 2008-2009 FUNDS FLOW
STATEMENT OF
(Rs.In lakhs)
SOURCE Rs. APPLICATION Rs.
----- ------ Funds loss from 430.80
operation
Funds from 430.80 Purchased of ------
operation fixed assets
Total 430.80 Total 430.80
Comparative Balance Sheet of sangam dairy for the year 2002- 2003
( Rs. In Crores)
TABLE-1
CURRENT RATIO OF THE "SANGAM DAIRY" DURING THE YEAR
2003-2009.
Current assets
Current ratio =---------------------
Current liabilities
Graphical Representation :
INTERPRETATION:
The above chart shows the current ratio of sangam dairy for the past 6
years. It is observed in the table that the current ratio varies between 3059 and
4.04. The current assets are gradually increased to an extent of Rs 3660. 17
lakhs in the year 2003-2004 and then they are decreased in the following
years. This ratio is above the standard norms of 2:1 during the period of
study. The company stands high working capital. Where as the current
liabilities are also steadily increased yearly to an extent of Rs. 964.66 lakhs in
the year 2004-2005. After that they are suddenly decreased to Rs. 830.71
lakhs. It is further observed from the table, the short term liquidity of the
company is good.
Table – 2
It indicated the efficiency of the firm in producing and selling its product.
Inventory
Inventory ratio = -------------------
Current Assets
Graphical Representation:
INTERPRETATION:
From the above chart, it is observed that the inventory ratio of sangam
dairy has been increasing in the past 6 years. The inventory ratio varies
between 0.58 & 0.75 times/The inventory has increased yearly to an extent of
Rs. 2336.91 lakhs in the year 2002-2003. And then it suddenly decreased. And
again it increased gradually for the following years. Where the current assets
are increasing and decreasing year by year. The current assets of more of Rs.
3660.17 lakhs in the year 2003-2004. This ratio explains the proportion of
inventory in the current assets.
TABLE – 3
INVENTORY TURN OVER RATIO OF THE “ SANGAM DAIRY”
DURING THE YEAR 2003 – 2009.
It is indicates that the efficiency of the firm in producing and selling its
product.
Graphical Representation:
s
INTERPRETATION:
From the above chart, it is observed that table – 9 that the inventory turnover
ratio of the Sangam Dairy has been fluctuates past seven years that the
inventory turnover ratio varies. The cost of goods sold are gradually increased
to an extend of Rs 10623.86 lakhs in the year 2007-2008. The average
inventory is also steadily increased yearly to an extent of Rs.23245.22 lakhs in
the year 2007-2008. The inventory turnover ratio shows fluctuations during
the period under study.
TABLE - 4
QUICK RATIO OF THE "SANGAM DAIRY" DURING THE YEARS
2003-2009.
Quick Assets
Quick Ratio = -----------------------
Current liabilities
Graphical Representation:
INTERPRETATION:
The above chart shows the quick ratio of Sangam Dairy for the period
2003-2009. It is observed table 10 that quick ratio varies between 0.75 and
1.69 times. The quick ratio is above the standard norm of 1:1. During the year
2003 to 2007 entire period of study the quick assets are strictly decreased year
by year. Then they suddenly increased in the next year and decreased in the
following years. Whereas the current liabilities are decreased all the years
based on the above analysis it is further observed that the short term solvency
of the company is satisfactory.
TABLE-5
The Net Working Capital is the different between Current Assets and Current
Liabilities.
The Net Working Capital is the liquidity left with the company after deducting
the current Liability obligations.
Graphical Representation:
INTERPRETATION:
In the above chart it is observed table 11. That the networking capital of
Sangam Dairy varies between Rs.2108.68 lakhs and Rs.2754.61 lakhs for the
year 2003-04, the company has high amount of net working capital. The
current assets are showing very high in the year 2003-04 i.e. Rs.3660.17 lakhs,
the current liabilities are gradually decreased year by year. The networking
capital of Sangam Dairy has been showing a mix fed trend during the period
of study. But it is increased to level of Rs.2390.69 in the year2006-08.
TABLE-6
CURRENT ASSETS TURNOVER RATIO OF THE "SANGAM
DAIRY" DURING THE YEARS 2003-2009.
The analysis is useful to find out whether the company is investing sufficient
amount in Current Assets or not.
Sales
Current Assets Turnover Ratio = -----------------
Current Assets
Graphical Representation:
INTERPRETATION:
The above table shows thai current assels turnover ralio of the sangam
dairy for the past 6 years it is observed in the table that the current assets
turnover ratio varies between 1.76 and 3.26 times. T'he sales arc gradually
increased to the extent of Rs. 11,327 .36 lakhs. In the year 2003-2004. then
they are decreased in the following years. Where as the current assets are also
steadily increased yearly an extent of Rs. 3660. 17 lakhs in the year 2003-
2004, After that they are suddenly decreased to Rs. 3337.78 lakhs. This ralio is
maximums in the years 2004-2005 and it is increased up to this year and in the
year it started declining
TABLE - 7
CASH & BANK BALANCE TO CURRENT ASSETS OF THE
"SANGAM DAIRY" DURING THE YEARS 2003-2009.
Graphical Representation:
INTERPRETATION:
The above chart shows the "Cash & Bank balance to current assets
Ratio" of the Sangam dairy for the study period. It is observed that the cash
and bank balances of the company are high of 964.74 lakhs in the year 2003-
2004. And in the present year they are showing a balance of Rs. 555.05 lakhs.
Where as the current assets are also avowing a maximum of Rs. 3660. 17
lakhs in the year 2003-2004. They are showing a balance of Rs. 3337.78 lakhs
for the present year. The ratio of these two varies between 0.06 in the year
2003-2004 and 0.26 in the year. This ratio has been declined up to the year
2003-2004 and then started increasing and reached to 0.25 times in the years
2005-2006.
TABLE - 8
WORKING CAPITAL TURNOVER RATIO "SANGAM DAIRY"
DURING THE YEARS 2003-2009
The Ratio indicates weather or not Working Capital has been efficiently
utilized in making Sales. In case a Company can achieve a higher volume of
Sales with relatively small amount of Working Capital. It is indicator of the
operating efficiency of the Company.
Sales
Working Capital Turnover Ratio = ----------------------
Working Capital
Graphical Representation:
INTERPRETATION:
The above chart shows that the working capital turnover ratio of the
Sangam Dairy for the past six years. It is observed in the table that the
working capital turnover ratio varies between 2.89 and 4.51 in the year 2003-
2004. The sales are gradually increased of an extent of Rs. 11327.36 lakhs. In
the year 2004-2005 and then they are decreased in the following years. Where
as the working capital are increase Rs. 2754.61 lakhs in the year 2003-2004.
After that they are suddenly decreased to Rs.2507.07 lakhs and it is continued
to till 2008-2009.
The Dairy’s milk procurement in the past seven years laying up and
town in 2003 – 04 it is stood at 624.66 lakhs of ltrs, it is increased to 761.68
lakhs of liters in 2007-08 but considerably decreased to 456.65 lakhs of liters.
In the year 2008-09.
Sales information:
The sales of milk in Guntur and other areas of the district is very encouraging
in the past five years in Guntur alone. It sold 1,42,50,000 liters of milk in
2000-2001. It constantly increased to 1,62,92,087 liters of Milk in 2004 – 05.
The dairy has buz socities which were registered under Anand pattern.
The sales ( in Rs) of Sangam Dairy for last five years.
Year Sales
( Rs in Crores)
2004-2005 119.30
2005-2006 117.16
2006-2007 116.05
2007-2008 102.14
2008-2009 116.54
2009-2010 --
By observing the above table, the sales of the Dairy were decreased from
2003-04 in 2008-09; but there is a slight increased in sales in the Year 2004-
05.And 2007-2008 but is a slight decrease in the sales; but there is a slight
increase in the year 2008-2009.
Finding:
Sangam Dairy is one of the most respected and prestigious Dairy in coastal
Andhra Pradesh and it is the third largest milk products manufacturing in
the country nest to AMUL and DULH SAGAR Dairies.
It has also got ISO (2000-2005 & 2001 – 2000) HACCP certificates from
Bureau of INDIAN STANDARDS for MAINTAINING
INTERNATIONAL STANDARD QUALITY OF MILK.
It is also giving fair rate for farmers for supplying milk and is also taking
good care of them by providing financial assis. Hence when ever needed to
them.
It is also taking good care of the employees by providing good canteen and
quarters facilities on subside by basis.
Suggestions:
BIBILOGRAPHY
Magazines:
• Annual Reports of “Sangam Dairy”
• Express computer
• Business time
• Indian times
• Economic times
• The Business line
• Business World
• Business India