AVINASHILINGAM INSTITUTE FOR HOME SCIENCE AND

HIGHER EDUCATION FOR WOMEN

COIMBATORE – 641043

A Summer Internship Report

on
SRI AYYAPPA GHEE STORES
COIMBATORE

by
NIVEDHIGA B
20PBA010

Under the guidance of

Dr. A. Pankajam, Professor
Department of Business Administration

The report submitted in the partial fulfillment

of the requirement for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

SEPTEMBER 2021
 CERTIFICATE

This to certify that this “INTERNSHIP AT “SRI AYYAPPA GHEE STORES

(SAGS), Coimbatore” submitted to Avinashilingam Institute for Home Science and
Higher Education for Women, Coimbatore in the partial fulfillment of the
requirement for the award of the degree of MASTER OF BUSINESS
ADMINISTRATION is the bonafide work of NIVEDHIGA B, who carried out the
project under my guidance and supervision. Certified further, that to the best of my
knowledge the work reported herein does not form part of any other project report
or dissertation on the basis of which a degree or award was conferred on an earlier
occasion on this or any other candidate.

Signature of the Head of the Department Signature of the Supervisor

 ACKNOWLEDGEMENT

With the blessings of the Lord Almighty, I acknowledge my sincere thanks

to Prof. (Mr.) S.P. Thyagarajan, Chancellor, Dr. (Mrs.) Premavathy Vijayan,
Vice Chancellor and Dr. (Mrs.) S. Kowsalya, Registrar of Avinashilingam Institute
for Home Science and Higher Education for Women, Coimbatore, for providing all
the required facilities for completing the Internship work.

My special thanks to Dr. (Mrs.) P. Chitramani, Dean, School of

Commerce and Management, Avinashilingam Institute for Home Science and
Higher Education for Women, for providing required support in carrying out the
internship work.

I would like to express my gratitude and thanks to Dr. (Mrs.) J. Arthi,

Head of the Department, Department of Business Administration, for her support
and encouragement to complete the Internship.

I would like to express my deep sense of gratitude, heartfelt and sincere

thanks to Dr. (Mrs.) A. Pankajam, Professor and Supervisor, Avinashilingam
Institute for Home Science and Higher Education for Women, Department of
Business Administration for her constant motivation and valuable suggestions
throughout my internship period which encouraged me to complete my Internship
successfully.

I thank Mr. K. Murali, Managing Director, Sri Ayyappa Ghee Stores

(SAGS), Coimbatore for providing me an opportunity to intern at the
Kavundampalayam Plant and for his moral support. I also thank my company guide
Mrs. Bindu, Supervisor, Sri Ayyappa Ghee Stores (SAGS), Kavundampalayam,
Coimbatore for her valuable input and guidance which helped me to learn lot of
things during my internship period.

I would like to extend heartfelt thanks to all the faculty members of

Department of Business Administration, Avinashilingam Institute for Home Science
and Higher Education for Women for their continuous support, help and
encouragement.

I take this opportunity to extend thanks to my family members, friends and

well-wishers for their immense support and encouragement in completing the
Internship.
 TABLE OF CONTENTS

List of Tables

List of Figures

Synopsis

Chapter No Description Page No

1 INTRODUCTION 1

1.1.Market Trends of Ghee in India 1

1.2.Benefits of ghee 1
1.3.Impact of COVID-19 on the ghee market in India 4

2 INDUSTRY PROFILE 5

2.1. History 5
2.2. Company overview 6
2.3. Products 7
2.4. Vision 7
2.5. Mission 8
2.6. Objectives 8
2.7. Organizational chart 8

3 OVERVIEW OF DEPARTMENTS 9

3.1. Finance Department 9

3.1.1. Role of finance manager 9
3.2. Marketing Department 10
3.2.1. Duties of Marketing Manager 10
 3.3. Human Resource Department 10
3.3.1. Duties & Responsibilities 11
3.3.2. Recruitment: 11
3.3.3. Selection 11
3.3.4. Interview Process 12
3.3.5. List of Act 12
3.3.6. List of policies 12
3.3.7 Guidelines of Sri Ayyappa Ghee Stores 12
3.3.8 Employees and welfare benefits 14
3.4. Operations Department 15
3.4.1. Procedure for manufacturing of Ghee 15
3.4.2. Processes involved in ghee manufacturing 16
3.4.3. Ghee processing – Flow chart 29
3.4.4. Equipments 30
3.5. Quality Control Department 37
3.5.1. Ghee quality 37
3.5.2. Certificates 38
3.5.3. Standards for ghee 39
3.6. Information Technology 40
3.6.1. Software Used 40

4 SWOT ANALYSIS 41

5 SUGGESTIONS 43

6 LEARNINGS AND CONCLUSION 44

 CHAPTER 1

INTRODUCTION

1.1.Market Trends of Ghee in India

Ghee is the pure butter fat which is left after the milk solids and water are removed from the
butter. It is widely used in Indian cooking and stands second in the largest consumed dairy product
in India, after milk. It is not only used in cuisine, but it also used in medicines, cosmetics and
religious rituals. In recent times, Ghee is witnessing a rapid increase in demand across the regions
of India and this has enabled consumers from the groups of lower income to afford it. The Indian
ghee market reached a value of INR 2374 billion in 2020.Ghee does not require refrigeration and
is stored at room temperature; hence it is preferred over its alternatives such as butter. Not only
this, a rise in the number of restaurants with traditional Indian food is also giving a boost to the
overall increase in the consumption of ghee. It is also suggested by a number of doctors in the
country that the moderate daily consumption of ghee will help in reducing the inflammation,
building strong bones and improving the digestion. The hindrance to the market growth of ghee in
India is the widespread adulteration of ghee, which is done especially with refined and
hydrogenated vegetable oils. In spite of facing many obstacles, the marketing of ghee in India is
expected to reach a value of INR 4,653 Billion by 2024.

1.2.Benefits of ghee

Ghee is connected with several health benefits:

• Ghee has a great source of butyric acid and fatty acid that has been linked to lower levels
of inflammation and improved digestive health in human and animal studies. It may reduce
gut inflammation.
• It is rich in conjugated linoleic acid. Some studies reported that conjugated linoleic acid
may be beneficial for certain conditions like cancer, high cholesterol, and obesity.
 • Ghee can help to increase the level of vitamin A (fat-soluble vitamin) intake and it is
important for maintaining eye health, skin health, immune function, and so on. It boosts
the vitamin A intake in our body.
• It could be helpful for heart health. Ghee is rich in omega-3 fatty acids, which may help
decrease inflammation and it will protect against heart disease.

1.2.1. Nutritional Composition

Ghee and butter have a similar nutritional composition but have few differences in them.

Table no 1.2.1

Nutritional composition of ghee and butter

The nutritional composition of ghee and butter for one tablespoon (14 grams) are given

Ghee Butter

Energy 123 calories 100 calories

Fat 14 grams 11 grams

Saturated fat 9 grams 7 grams

Monounsaturated fat 4 grams 3 grams

Polyunsaturated fat 0.5 grams 0.5 grams

Protein Trace amounts Trace amounts

Carbohydrates Trace amounts Trace amounts

 Ghee is rich in vitamins such as A, D, E and K which promotes bone and brain health. Both
butter and ghee contains nearly 100% of calories from fat. Ghee contains a higher concentration
of fat than butter. Ghee converts fiber content into butyric acid which benefits the intestinal
bacteria, increases the appetite and promotes better health. Butter provides slightly more butyric
acid and other short-chain saturated fats. The studies suggest that these fats may reduce
inflammation and promote gut health. It’s also slightly higher in conjugated linoleic acid, a
polyunsaturated fat that could help increase fat loss. Overall, the differences between the two are
small. However, ghee is completely free of the milk sugar lactose and the milk protein casein,
while the butter contains small amounts of each. Ghee is the healthier choice for people who are
allergic or sensitive to dairy products.

1.2.2. Quality of ghee

The Quality of ghee depends on the

• Preparation method
• Quality of butter used for production
• Boiling temperature and duration
• Other ingredients and flavor added to ghee
• Storage environment of the finished product

1.2.3. Physical properties of ghee

• Due to the perfect balance of the long chain and the short chain saturated fatty acids. The
pure desi ghee has a semi – solid form
• The texture of ghee are granny and immaculate
• It produces milky sweet aroma due to the process used in the preparation of ghee
• It has yellowish colour because cow milk contains a beta-carotene which is a colouring
pigment
• It melts at around 370C.
1.2.4. Chemical properties of ghee

Ghee is a complex dairy product which mainly contains fat and other minor components

Table no.1.2.4

Chemical properties of ghee

Depending on the animal whose milk is been used, the composition of ghee varies.

Constituents Cow milk ghee Buffalo milk ghee

Fat (%) 99 – 99.5 99 – 99.5
Moisture (%) <0.5 <0.5
Carotene (mg/g) 3.2 – 7.4 -
Vitamin A (IU/g) 19 – 34 17 – 38
Cholesterol (mg/100g) 302 – 362 209 – 312
Tocopherol (mg/g) 26 – 48 18 – 31
Free fatty acid (%) 2.8 2.8

1.3. Impact of COVID-19 on the ghee market in India

The sudden outbreak of the COVID-19 pandemic during the year 2020 has led to the changing
consumer behavior from conventional brick-and-mortar type of distribution channels towards
online retail platforms for the purchase of ghee. Even though the consumer behavior has been
changed, the ghee tops the list in Dairy exports during COVID-19.
 CHAPTER 2

INDUSTRY PROFILE

Ayyappa ghee is a leader in Ghee manufacturing which is an inseparable part of Coimbatore

kitchens since 1965. Ayyappa ghee is a synonym for pure cow ghee. They are adding life to food
for more than 50 years. It is renowned for its traditional purity apart from the unique taste that it
adds to all the occasions. This is made possible with stringent quality controls across procurement
right from the dairy farms to the latest machineries used to meet the customer expectations.

Some of the quality standards that the firm has include AGMARK, FSSAI and ISO: 22000
certifications. The usage of Ayyappa ghee by major restaurants, sweet makers, corporate canteens
and caterers is a testimony to its quality.

2.1. History

N. Karunakaran (1924 – 2013), Founder of ‘Sri Ayyappa Ghee Stores’ was born at
Karuvatta village, Alleppey, Kerala. He registered the trade mark in the year 1965. The shop was
started in Poo market area in Coimbatore and had only one employee initially. His business picked
up and he ventured into R.S. Puram, East Periyaswamy road, Coimbatore. In the year 1997, he
started a new factory premises in Kavundampalayam on Mettupalayam road. The factory had four
employees initially. Now it has 20 employees in the production unit and the plant is equipped with
latest technology to provide a fine quality and operating process in the ghee. Initially, the ghee was
sold in loose and now they are sold in tins and containers. They supply ghee in and around
Coimbatore, Tirupur, Chennai, and Kerala. In 1997, Mr. K. Murali, son of N. Karunakaran joined
the business.

“If you cannot do the business ethically, you have to quit” - N. Karunakaran, Founder of
‘Sri Ayyappa Ghee Stores’
2.2. Company overview

Sri Ayyappa Ghee Stores has an incredible experience over past 5 decades which speaks of
their success in dairy industry. They strictly adhere to Good Manufacturing Practices (GMP) which
enabled them to process the Dairy Products as per the industry standards. Their food experts along
with other professionals allow them to offer a wholesome range of quality products, which are
tested for quality before hygienically packed. It is one of the best known dairy brands and it is
recognized as a sign of exceptional quality.

Name: Sri Ayyappa Ghee Stores

Logo:

Founded: 1965

Founder: Mr. N. Karunakaran

Sector: Dairy products

Main office: 153 – B, East Periyaswamy road, Coimbatore – 641 002, Tamil Nadu, India

Manufacturing unit: 4B, Mettupalayam road, Kavundampalayam, Coimbatore – 641 030, Tamil
Nadu, India

Branches: Poo market, Saibaba colony, Kavundampalayam

No. of employees: 65

Most demanded region of sale: Coimbatore

2.3. Products

Sri Ayyappa Ghee Stores recognized for their exceptional range of Dairy products includes

• Pure Cow Ghee

• Pure Buffalo Ghee
• Pure Liquid Cow Ghee (For Sweets)
• Yellow Butter
• White Butter

Table no. 2.3

Products of Sri Ayyappa Ghee

Weight Packs Price (Rs.)

50 ml Bottle 41. 50

100 ml Bottle 80.60

200 ml Bottle 154.00

500 ml Bottle 354.70

1l Bottle 691.00

2l Tin 1324.00

5l Tin 3124.00

15 l Plastic can 9290.00

15 kg Tin 10180.00

2.4. Vision

Their vision is to produce superior quality products at an affordable price for our customers
2.5. Mission

Their mission is to make the product easily accessible in the market to customers and earn
maximum profit

2.6. Objectives

• To manufacture the ghee as per the market demand

• To provide quality product at an affordable price to the consumers
• To provide the required resources to prove the excellence in the dairy industry
• To ensure the environmental safety by monitoring the processes.

2.7. Organizational chart

 CHAPTER 3

OVERVIEW OF DEPARTMENTS

The various departments in the concern are:

1. Finance

2. Marketing

3. Human Resource

4. Production - Ghee

3.1. FINANCE DEPARTMENT

Finance is essential in any sector. Ayyappa Ghee involves payment of cash by a separate
finance team. The butter procurement team handles the payment data for collection of butter and
the amount is settled based on the tests and various other factors. They account all the butter
procurement details. They estimate the budget and the managing director approves the budget for
all the materials required. Expenses of all departments comes under the main office store, the
estimate slips are issued. Then the payment is settled to the corresponding supplier.

3.1.1. Role of finance manager

The Roles of finance manager are

• Monitoring the overall activities in the finance department

• Verifying the payment made to the creditors
• Fulfilling the statutory obligations to the government
• Preparing Management Information System reports – monthly
• Preparing profit and loss account and balance sheet – yearly
 • Checking and verifying the accounting entries made by the staffs
• Providing the required data to the auditors

3.2. MARKETING DEPARTMENT

Marketing is essential for every product. The marketing for Ghee is phenomenal. Sales are
an essential aspect of marketing. Therefore marketing plays an important role with respect to sales
as well. The Ayyappa ghee are marketed directly or through sales branches established in different
parts of the Coimbatore. Frequent suggestions are received to improvise their reach and strategies.
The main function of marketing department is to create the advertisements and market the ghee.

3.2.1 Duties of Marketing Manager

The marketing manager makes sure that the marketing department is working towards the
achievement of the organisational goals. He reviews the progress of the sales and takes steps to
improve the progress. The marketing manager will oversee the promotional activities of the
company and make sure those activities benefit the company. It is the duty of the marketing
manager to prepare monthly Management Information (Sales) Reports.

3.3. HUMAN RESOURCE DEPARTMENT

Human Resources set strategies and develop policies, standards, systems, and processes that
implement the strategies. The following are typical of a wide range of organizations:

• Recruitment, selection, on boarding (resourcing),

• Organizational design and development,
• Business transformation and change management,
• Performance, conduct and behaviour management,
• Industrial and employee relations,
• Analyzing the Human resources and workforce data management,
 • Compensation, rewards, and benefits management,
• Training and development (learning management).

3.3.1. Duties & Responsibilities

• To make sure that discipline and cordial Industrial Relationship are maintained
• To see whether the guidelines are followed
• In case of any disputes it is the duty of the HR department to see that the matter is settled
sooner.
• Plays a character of Liaison officer between the Management and Worker.

3.3.2. Recruitment:

Employee recruitment forms a major part of an organization's overall resourcing strategies,

which identify and secure people needed for the organization to survive and succeed in growing
market. Recruiter has the responsibility to secure suitably qualified and capable recruits at all levels
in the ever- increasing competitive market.

3.3.3. Selection

• Age: Preferably from 20 until retirement. The minimum age of employee working at Sri
Ayyappa Ghee Stores is 20 and maximum is 58
• Communication Skills is essential for certain jobs in retail shops
• Physical Stamina is required for load men and truck drivers of Ayyappa ghee.
• Skill is more required compared to education and knowledge
• Women employees are equally preferred at Sri Ayyappa Ghee Stores.
• Technical Education for Technical Supervisors and Quality Control Officers.
• Practical/Previous Experience for Technical Staffs at Sri Ayyappa Ghee Stores.
3.3.4. Interview Process

Direct interview- By the HR Manager

HR Manager Sri Ayyappa Ghee Stores hires the staffs based on demand and technical staffs
based on qualifications approved by the managing director.

3.3.5. List of Act

• Factory Act 1948

• Payment of Wages Act 1936
• Labour Act
• PF Act
• Maternity benefit act 1961

3.3.6. List of policies

• Food Safety & Quality Policy

• Metal Policy
• Glass Policy
• Environmental Policy
• First In First Out (FIFO) Policy
• Occupational Health & Safety Policy

3.3.7 Guidelines of Sri Ayyappa Ghee Stores

Sri Ayyappa Ghee Stores is committed to the quality and food safety commitment and
practices. It is the responsibility of everyone to ensure that all the products that leave their plant
meet the highest quality and safety standards.
The guidelines to be followed in the production plant are

• Hair nets, mouth nets are to be worn in a manner that effectively restrains all hair
• Personal belongings should be kept in a room before entrance
• Shoes must cover the entire foot (no open to/ high heel/ slippery shoes/ sandals)
• Visitors to SAGS should always be accompanied by an authorized employee at all times.
• Cameras/ mobile phones are not permitted in the production area, it should be kept in a
room
• Nail varnish/ enamel are not permitted.
• No animals are allowed inside the plant
• Excessive perfume should not be worn as it can cross contaminate
• People entering the production area should wash their hands thoroughly with appropriate
soap and sanitizer
• In the event of an evacuation, people must make their way to the fire evacuation point
• No food or drink has to be taken into the production areas and no chewing gum is permitted
• People infected with open cuts or wounds are not allowed in the plant area
• People are not allowed to carry any articles, containers, dangerous goods or prescription
drugs into the production area
• People with symptoms like – intestinal illness with repeated diarrhea, strong nausea,
vomiting, high fever, chills, jaundice, hepatitis are considered as risk and not allowed inside
the production area
• Workers should not remove any document/ material or photograph nor record any data
without specified written permission from the representative of SAGS
• The company insists the visitors to take care of themselves and the company is not liable
for any harm or injury that may occur to anyone during their visit
• All visitors shall be provided with a visitor’s badge. The badge shall be worn at all times
while in and around the facility and return the badge when leaving the plant.
3.3.8 Employees and welfare benefits

Total no. of employees in Sri Ayyappa Ghee Stores is 65. In production area, there are 20
employees which include 1 supervisor, 5 employees in production section, 10 employees in
packing section, 1 employee in processing section, 1 watchman and 2 house-keeping. In each retail
outlet, there are 4 employees.

Welfare Benefits

• Medical reimbursement for the employees

• Transport facilities
• Payment for working overtime
• Festival Bonus

3.3.8.1. Salary

• In retail outlet – Rs. 10,000 – 15,000

• In production area
• Freshers – Rs. 6000 (each year an increment of Rs. 1000 is given)
• Incentives will also be given based on the sales and profit earned by the Sri Ayyappa Ghee
Stores

3.3.8.2. Leave

Monthly 4 days holidays

Casual leave – 12 days/ year

Sick leave – 12 days/ year

3.3.8.3. Working hours

Normal working hours: 9am to 6 pm

During festival season (due to more orders): 9 am to 8 pm

3.4. OPERATIONS DEPARTMENT

3.4.1. Procedure for manufacturing of Ghee

The sequence of process involved in this manufacturing is as follows

No
Customer Customer enquiry Inform
Customer
Yes

Confirm orally the

price and quantity

Arrange for raw

material
Treat as Customer order

Inform suppliers

Do the planning

Receive raw
materials & others
Raw material and other No
availability

Check for quality &

quantity
Yes
Take for production
No

Inform supplier and

Do the production take action
3.4.2. Processes involved in ghee manufacturing

3.4.2.1. Butter Procurement

Butter procurement is an essential factor and the quality is an essential factor in the
procurement of butte. Butter is collected directly from an industry in Andhra Pradesh and
Karnataka. 25 tonnes butter are procured per week and stored in cooling chamber and used for
ghee production. Quality tests are conducted in Chennai and the butters are stored in SILO at a
particular temperature. A large number of vehicles operate on procuring and transporting butter.
After picking the finest quantity of butter the ghee is made by melting the butter. Ayyappa ghee
has high amount of antioxidants. It is a good source of Vitamins and Minerals. The fragrance of
Ayyappa ghee is truly pleasing and it adds a rich value to our tradition.

Figure no. 3.4.2.1.

Butter Procurement
3.4.2.2. Storage of Butter

In order to preserve the quality of butter and prevent spoilage, the butter should be cooled
immediately after procurement. The butter is chilled to 40C if it is to be stored for a shorter period.
If it is to be stored for a longer period, when the demand is less, then the temperature is changed
to -160C to -180C

Figure no. 3.4.2.2.

Storage of Butter

3.4.2.3. Testing the quality of butter

Quality tests are conducted and the butter are stored in SILO at a particular temperature. The
quality test is done at SGS laboratory, Chennai. It is the world’s leading certification company. It
enables that the butter is satisfies with national and international regulations and standards.
3.4.2.4. Boiling unit – Production of steam

Wood is fed into the inner shell cylindrical body of the boiler and covered. The water from
the water storage tank is made to circulate in the outer shell of the boiler which produces steam.
The boiler has a steam outlet, water inlet and safety valve connection. The FD (Forced Draft) fan
is used to burn the wood and ID (Induced Draft) fan is used to take the air out and create a negative
pressure. The pressure indicator indicates the steam pressure. When the steam pressure reaches 7.8
psi (pounds per square inch), the first valve opens and when the steam pressure reaches 10 psi, the
second valve opens and sound is produced. If the safety valve doesn’t open then it must be replaced
at the earliest. The maximum pressure of steam boiler is limited to 15 psi. The steam will be let
inside the production area and used in the butter melting process. Once the steam completes its
purpose, it is again fed into the tank and again made to circulate inside the outer shell of the boiler.

Figure no. 3.4.2.4.1

Boiler
 Figure no. 3.4.2.4.2.
Boiling unit

3.4.2.5. Pre-melting of butter

The butter is put into melting vat which has long coils on the top and bottom of the tank.
Hot water is circulated inside the long coils fitted at the top and bottom of the tank. The 450C hot
water melts the butter when placed on the coils. The tank is emptied by using an outlet with valve
which is fitted to a pump.

Figure no. 3.4.2.5.

Pre-melting of butter
3.4.2.6. Centrifugation process

The melted butter is taken to the centrifugal tank using motor and further boiled @118 0C.
The ghee along with the residue is made to remain in the tank for 30 - 35 minutes. 1000kg butter
is converted to 700kg ghee.

Figure no. 3.4.2.6.

Centrifugation process

3.4.2.7. Settling of butter in tank

Ghee is then pumped into settling vats. In the settling vats, the ghee is made to settle for
another 2 hrs. Once the ghee is settled the top and middle layer are transferred and the bottom layer
is discarded. This method is repeated 3 times.
 Figure no. 3.4.2.7.

Settling of butter in tank

3.4.2.8. Hydraulic pressing of residue

The hydraulic press method is used to press the black hot ghee. This method is used to form
cubes of the ghee residue collected from the bottom layer of the tank.

Figure no. 3.4.2.8.

Hydraulic pressing of residue

3.4.2.9. Clarifying of ghee

The clarifier is kept in a separate room. There are 6 rooms and each room consists of a
clarifier having a capacity to store 5 tonnes of ghee. The clarifier machine consists of a blade which
rotates continuously to remove the clump forming. Ghee is clarified at approximately 70 0C so that
the solid particulates or suspected solids from the ghee are removed.

Figure no. 3.4.2.9.

Clarifying of ghee

3.4.2.10. Cooling unit

Cooling is done after a day. The air conditioner is used for a day to cool and fan is also used
in certain cases. The hours of cooling and date of cooling are noted. Cooling of ghee helps in the
formation of granules in ghee. Once the granules are formed the ghee is transferred to large
container.
 Figure no. 3.4.2.10.

Transfer of ghee to containers

3.4.2.11. Storing ghee in tank

The ghee from the clarifier is stored at a specified interval to monitor and control the
optimum quality of ghee as per specified standards.

3.4.2.12. Steam cleaning

The tins used in the collection of ghee are cleaned using steam to avoid contamination of
ghee due to the microbes present tin the tins. This steam cleaning helps to get rid of the microbes.
 Figure no. 3.4.2.12.

Steam cleaning

3.4.2.13. Filling of Ghee

The ghee is usually filled in tins and bottles using automised machines.

Figure no. 3.4.2.13.

Filling of Ghee
3.4.2.14. Induction sealing

Bottles are sealed with the induction sealer machine where the heating process is used to
make the bottle airtight.

Figure no. 3.4.2.14.

Induction sealing

3.4.2.15. Packaging

Table no 3.4.2.15.

Procurement of Packaging materials

Packaging materials Procured from

Bottle Thadagam road
Tin Avinashi
Box Ganapathy
 Packaging of ghee is usually done to protect the products from the outer environment so that
the ghee can retain its moisture, flavor, freshness for a longer period of time. It is done usually
after the completion of production process. Material tests are conducted where the dimensions of
the packets are analysed and then ordered in bulk to the manufacturer. Various colours are used to
label the ghee. The packing is designed in a colourful and attractive manner. The Ghee is packed
in bottles and tins. There are three types of packaging used in Sri Ayyappa Ghee Stores – Primary,
secondary and tertiary packaging.

Flow chart of ghee filling

GHEE

GHEE FILLING
MACHINE

BOTTLE IS CAPPED

INDUCTION SEALING

CHECKING FOR DEFECT

PRICE PRINTING USING

LASER MACHINE

CARTON SEALING
MACHINE

DISPATCH
 Figure no. 3.4.2.15.
Packaging

3.4.2.16. Storage

Ghee has a good keeping quality; hence it can be stored for 6 months and above under
ambient temperature with proper packaging. Food grade plastic containers like random co-polymer
and tins are used for packaging of ghee. Ghee has more tendencies to be affected by oxidation
induced changes during storage.

Figure no. 3.4.2.16.

Storage of ghee
3.4.2.17. Supplying of ghee

Ayyappa ghee is supplied mostly in and around Tamil Nadu and Kerala. Its key districts are
Coimbatore, Chennai, Salem, Thanjavur, Thirunelveli and Virudhunagar. Ayyappa ghee is highly
supplied in Coimbatore district compared to other districts. In Coimbatore, Ayyappa ghee is
supplied to Annapoorna Groups – The Pride of Coimbatore, other restaurants and caterers.
Ayyappa ghee is International supplied or exported to Singapore, Dubai and America.

Figure no. 3.4.2.17.

Supplying of ghee

3.4.2.18. Shelf life

Ayyappa ghee can be stored up to 6 months at 210C which is the recommended temperature
for storage

3.4.2.19. Yield

In the creamery butter method, 80%of ghee is obtained from the butter. The yield may vary
based on the method of production used for the preparation of butter.
3.4.3. Ghee processing – Flow chart

BUTTER PROCUREMENT
BUTTER MELTED - PRE MELTING
TANK
GHEE BOILING - CENTRIFUGAL
TANK
SETTLING TANK

BOTTOM LAYER IS DISCARDED

TOP AND MIDDLE LAYER ARE
TRANSFERED
FILTRATION

BOILING

CLARIFIER

FILTRATION

COOLING UNIT

GHEE
3.4.4. Equipments

3.4.4.1. Boiler

The insulation is made up of Rock wool type glass wool between the outer shell and
intermediate shell. Wood is fed into the inner shell cylindrical body of the boiler and covered. The
boiler has a steam outlet, water inlet and safety valve connection. The safety valve is provided to
release the pressure. It also consists of FD (Forced Draft) fan and ID (Induced Draft) fan. Steam
pressure is indicated with the help of pressure indicator.

Figure no. 3.4.4.1.

Boiler

3.4.4.2. Storage container

The butter storage container enables that the butter is secure without any contamination. The
low temperature is maintained which prevents the spoilage of butter.
 Figure no. 3.4.4.2.

Storage container

3.4.4.3. Pre-melting tank

This Pre-melting tank is used to pre-heat the butter and melt the butter before processing. It
consist of has long coils on the top and bottom of the tank. The capacity of the tank is 630 litres.
It has an electrical cabinet to set the temperature.

3.4.4.4. Centrifuge tank

The centrifuge tank is used to rotate the products with a specified speed such that the
components having different densities are separated. The temperature of 118 0C is maintained.
There are two centrifuge tanks with a capacity of 1000 kg each.
 Figure no. 3.4.4.4.

Centrifuge tank

3.4.4.5. Hydraulic press

Hydraulic press is a pressing machine which uses a hydraulic cylinder to press the ghee
residue into compressed solids.

Figure no. 3.4.4.5.

Hydraulic press
3.4.4.6. Steam cleaner

Steam cleaner involves the usage of steam to clean the tins used in storing of ghee. It is
effective in eliminating the microorganisms. The tins are placed in the steam cleaner for a certain
period and removed carefully.

Figure no. 3.4.4.6.

Steam cleaner

3.4.4.7. Clarifier

Clarifiers are large tanks which contains blade that rotates continuously and removes the
formation of lumps in the ghee. The clarifiers are placed in 6 rooms and capacity of clarifier placed
is 5 tonnes/ room.
 Figure no. 3.4.4.7.
Clarifier

3.4.4.8. Filling machine

The machines for filling the bottles and tins are – 50 ml, 100 ml, 200 ml, 500 ml, 1 l, 2 l, 5
l, and 15 l. There are double filling machines which help to fill two bottles at a time. Hence, it
saves time in filling the bottles.

Figure no. 3.4.4.8.

Filling machine
3.4.4.9. Induction sealer

The Induction sealer uses the mechanism of slightly heating the cap of the bottle which helps
the foil placed in the inner side of the cap to fix on the mouth of the container. It ensures the bottle
is sealed properly and ghee does not leak.

3.4.4.10. Pricing machine

Bottles are sealed with the induction sealer machine. The manufacturing and expiry date are
printed according to the norms of “FSSAI” and “ISO”.

Figure no. 3.4.4.10.

Pricing machine
3.4.4.11. Packaging machine

Packaging of ghee bottle is done is cardboard boxes and sealed. It involves primary
packaging and secondary packaging.

Figure no. 3.4.4.11.

Packaging machine
3.4.5. Equipment – prices

Table no. 3.4.5

Equipment – prices

Equipment Prices (Rs.)

Boiler 9 lakhs

Pre- melting tank 3 lakhs

Cooler 5 lakhs

Centrifugal tank 5 lakhs

Clarifier machine 2.5 lakhs

Filling machine 50 ml – 20 lakhs

100 ml – 50 lakhs

Pricing machine 3.5 lakhs

Sealing machine 3 lakhs

3.5. QUALITY CONTROL DEPARTMENT

3.5.1. Ghee quality

Various tests such as adulteration tests, composition tests and quality tests are conducted
before the ghee is being dispatched. These tests are done at SGS laboratory, Chennai. It is the
world’s leading certification company. It is an NABL - National Accreditation Board for Testing
and Calibration Laboratory. It enables that the ghee satisfies with national and international
regulations and standards.
3.5.2. Certificates

3.5.2.1. FSSAI

The Food safety & standards act, 2006 was introduced to improve the quality and hygiene
of the food. This FSSAI has created a massive development in the food industry.

3.5.2.2. Bottle certificate

The bottle certificate is obtained by checking the thickness of the bottle to ensure strength
and durability, checking the fit between bottle and the cap, checking the pressure to confirm leak
– proof fit and checking the dimensions of the bottle. This bottle certification is obtained from
CSIR – Central Food Technological Research Institute, Mysore. The test method used is IS:9845–
1998 (2004)

3.5.2.3. TUV Austria

TUV Austria tests the product, inspect them thoroughly and then certification is done. It
helps in minimizing the hazards and prevents the damage. This certification is helpful to export
the Ayyappa Ghee to other countries.

3.5.2.4. Halal

Halal certification ensures that the product (ghee) and its quality are matching the rules given
by the Islamic Council. The ingredients in the product are verified and an inspection is done
followed by which the committee will approve the product. This certificate assures the customer
that the product is in compliance with the Islamic dietary law. This certification is obtained to
export the Ayyappa Ghee to Dubai.
3.5.2.5. Other certificates

• Boiler certificate
• Clarifier certificate
• Centrifugal tank certificate
• Ghee filling machine certificate
• Pricing machine certificate
• Packaging machine certificate

3.5.3. Standards for ghee

3.5.3.1. Agmark standards of ghee

Parameters Special grade General grade Standard grade

Baudouin test Negative Negative Negative

Butyro- refractometer 40.0 – 43.0 40.0 – 43.0 40.0 – 43.0

reading at 400C

Reicher Meissi value Not less than 28.0 Not less than 28.0 Not less than 28.0

Polenske value 1.0 – 2.0 1.0 – 2.0 1.0 – 2.0

Moisture content Not more than 0.3% Not more than 0.3% Not more than 0.3%

Percentage of free Not more than 1.4 Not more than 2.5 Not more than 3.0
fatty acid (as oleic
acid)
3.5.3.2. NABL Accredited Tests conducted at SGS Laboratory- Chennai for the Ayyappa
ghee

Parameters Method Result Unit

Free fatty acid (as oleic acid) IS:3508: 1966 1.06 Percentage

Butyro- refractometer reading IS:3508: 1966 43 -

at 400C

Reicher Meissi value IS:3508: 1966 28.78 -

Moisture content IS:3508: 1966 0.09 g/ 100g

3.6. INFORMATION TECHNOLOGY

The Information Technology plays an important role by Computerization. The ERP-

Enterprise Resource Planning package and other in house and bought out software are controlled
and monitored.

3.6.1. Software Used

• AG Software - used for attendance and salary maintenance.

Strategy followed

They mainly concentrate on Pull Strategy. It is a promotional strategy where the company
aims to increase the demand of the ghee. The goal is to actively increase the consumer demand
rather than pushing the products to the consumer.
 CHAPTER 4

SWOT ANALYSIS

SWOT Analysis is a tool to easily understand and analyse the purpose and act according to
the market scenario. It is used in decision making in any business and organizations. SWOT is an
acronym for Strength, Weakness, Opportunity and Threat. This strategy helps in formulating the
marketing, sales and positioning for the product.

4.1. Strengths

Strengths are the advantage of Sri Ayyappa Ghee Stores over other companies. It also tells
what the Sri Ayyappa Ghee Stores can do better than the other company.

• Sri Ayyappa Ghee Stores has a strong brand image in Tamilnadu especially
Coimbatore, Chennai, Virudhunagar and Salem.
• It is an ISO, HACCP certified company
• It maintains uniform quality
• It has a well organized distribution channel
• It has a strong supply chain management
• They have skilled labour and high morale

4.2. Weaknesses

Weakness tells what the Sri Ayyappa Ghee Stores should avoid in their activities and what
activities could be improved.

• Low product awareness due to lack of effective media advertisement

• It has a weak rural presence and gives a strong competitive disadvantage
• The cost of procurement of raw material and operations is high
 • It has limited distribution network

4.3. Opportunities

Opportunities are referred to the advantages which are beneficial to the Sri Ayyappa Ghee
Stores.

• They have the opportunity to introduce other dairy products and expand its product line
• They can maintain and improve their quality to build customer’s confidence
• They can export their product to more countries to increase its turnover
• They can innovate on healthy products at an affordable price

4.4. Threats

Threats are the obstacles faced by Sri Ayyappa Ghee Stores by the external and internal
environment in it s development process.

• New players in the market

• Losing market share because of price changes of the raw material
• Decrease in consumption of ghee due to the fear of health issues
 CHAPTER 5

SUGGESTIONS

• To customize delivery time based on the requirement of the customer

• To supply ghee in packets to suit customer’s consumption requirement
• To produce other dairy products to expand the product line
• To educate the customers about the benefits of ghee on the packaging of ghee
• To increase the awareness of Sri Ayyappa Ghee Stores through effective advertisements
and thereby increase the sales and consumers’ attention
• To increase the number of outlets to target more places and customers
• Conducting cooking contests for homemakers and college going girls to popularize the
product (i.e) ghee.
• To create social media marketing strategy by engaging in Facebook, Instagram, etc
• To develop a mobile application to ensure better coordination between production and
customer requirement. The app can include the features like payment facilities, quantity
required, product information and delivery time
• To conduct yearly camps or programs for the employee
 CHAPTER 6

LEARNINGS AND CONCLUSION

Learnings from the Company

• The work of each department is linked with one another. I learnt about the basic concepts
involved in the working of each department which helped me to understand about the
company and the role of each employee.
• During my intern in Production area, Kavundampalayam, I learnt the operations involved
in the preparation of ghee.
• Production process included automation as well as manual handling which gave a deep
insight about how the manpower is involved.
• Updated the skills and technology in the competitive industry.
• Importance of keeping the high morale of the employees to ensure high levels of
productivity and maintenance of quality.
• Decision making and implementation is of prime importance.
• Team work helps in achieving better results and also faster
• Punctuality ensures better discipline and smoother workflow.
• Earlier to this Industrial training, I was familiar to only the theoretical aspects of the ghee
production in general and the present internship gave me the practical experience of
corporate world.
• Corporate culture and its different functional activities were known in detail.
• Co-ordination of the activities by the organization and interdependence of one department
with other departments to achieve the organizational objectives was studied during the in-
plant training.
• Importance of time management, which helps the entire organization in meeting delivery
dates of customers.
• Employees have different Skills, talents, abilities, attitudes etc., and how they are being
utilized in optimum manner in achieving organization goals.
 • Managerial knowledge such as planning, organizing, directing, controlling and decision –
making.
• Knowledge of rules, regulations, policies, procedures, etc. of the company is the guide of
performing the work.

Conclusion

Training has become a part and practice of life. The industrial training undergone in Sri
Ayyappa Ghee Stores has given the practical knowledge about the functioning of company. Apart
from gaining of knowledge, this industrial training has given a wonderful practical experience. It
enabled me to have first hand information relating to the functioning aspects of the plant. Finally,
the industrial training paves a right way in the career and more helpful in doing further projects in
future to gain more knowledge of working, skills in operating and following the pattern of the
plant Sri Ayyappa Ghee Stores.