HINDUSTHAN INSTITUTE OF TECHNOLOGY

(An Autonomous Institution)

(Approved by AICTE, New Delhi Affiliated to Anna University, Chennai,
Accredited with NBA & ‘A’ Grade by NAAC, An ISO 9001:2015 Certified Intuition)
Coimbatore

DEPARTMENT OF MANAGEMENT SCIENCES

Rural Innovation Project– 22PBA16

Name

Register Number

2023-2025
 DECLARATION

I, STUDENT NAME of I MBA- “A” hereby declare that this Rural Innovation Project work at
“Name of the village” has been prepared by me during the year 2023 – 24 under the guidance of
Dr. R.Ayyamperumal / Mr.Muthuraja, Department of Management Science, Hindustan Institute of
Technology, Coimbatore in the partial fulfillment of MBA degree prescribed by the college.
I also declare that this project is the outcome of my own effort, that it has not been submitted to any
other university for the award of any degree.

Date:

Student Name
Register Number
 HINDUSTHAN INSTITUTE OF TECHNOLOGY
(An Autonomous Institution)
(Approved by AICTE, New Delhi Affiliated to Anna University, Chennai,
Accredited with NBA & ‘A’ Grade by NAAC, An ISO 9001:2015 Certified Intuition)
Coimbatore

DEPARTMENT OF MANAGEMENT SCIENCES

1 Certificate

Certified that this Rural Innovation Project (Name of the village, Nearby town name)

is a bonafide work done by ....................................................... of IMBA – Section......

(Register no. .......................... ), as part of the curriculum for the award of the degree

during the second semester of the year 2024.

Place : Coimbatore

Date :

Staff in-charge Head of the Department

_________________________________________________________________

Register No.: .......................................

Submitted for the autonomous practical examination conducted on .......................

Internal Examiner External Examiner
 HINDUSTHAN INSTITUTE OF TECHNOLOGY
(An Autonomous Institution)
(Approved by AICTE, New Delhi Affiliated to Anna University, Chennai,
Accredited with NBA & ‘A’ Grade by NAAC, An ISO 9001:2015 Certified Intuition)
Coimbatore

DEPARTMENT OF MANAGEMENT SCIENCES

Contents

Table of Contents
Certificate 2
1. Introduction: 4
a). About the Institution: 4
b). About the Department of Management Science: 5
c). About Rural Innovation Project: 6
2. Background Theory Concepts Related to Rural Innovation Project 7
3. Rural Innovation Project: 8
a. Understanding the demographic characteristics and life style of the rural community 8
b. Capable to reach the rural market and able to understand the rural needs 8
c. Able to design a product and services to satisfy the needs of the rural people 8
d. Capability to take up the rural based projects effectively 8
e. Continue his career as one of the citizen of the rural community 8
4. Conclusion: 9
 Rural Innovation Project
Batch 2023-2025

2 1. Introduction:
1 a). About the Institution:
Hindusthan Institute of Technology (HITECH) was started in the year of 2007 by the great
industrialist and philanthropist, Thiru.T.S.R.Khannaiyann.

It is an Autonomous Institution. The primary objective of the Hindusthan Institute of Technology is

to educate and prepare men and women for leadership in industry, government, and educational
institutions; to advance the knowledge base of the engineering professions; and to influence the
future directions of engineering education and practice.

The College has well-furnished classrooms, state-of- the-art laboratories, computer centers and a
well-stocked library. Separate Hostels with all the modern amenities are provided for men and
women. The campus consists of lush green lawns, a playground, GYM and also facilities for indoor
games. A fleet of vehicles caters to the transport needs.

HITECH believes not only in educating the students, but also grooming characters, with moral and
ethical values, thus building the nation. Since its inception, the college has been providing world-
class facilities & infrastructure for high quality education and learning. The emphasis is on
transformational leadership rather than directional leadership. The aim is to establish new trends,
introduce innovative training methodologies, and thus guide students towards the road to success.

The College provides ample facilities for the development of an integrated personality. It has a fine
library containing more than thirty thousand books andmore than 500 national & international
journals. Our library also digitalized by holding IIT-NPTEL Video Library in it.

The facilities for playing tennis, basketball and cricket are available on the College Campus. The
Gymnasium, the Junior Common Room and the Ladies Common Room provide facilities for
gymnastics, badminton, table tennis and other indoor games.

The educational programs in the college emphasize the understanding of fundamental principles and
prepare an individual for a lifetime of learning and professional growth.
 VISION AND MISSION OF THE INSTITUTION
VISION: “EXPERIENCE THE EXCELLENCE”
Hitech pursues a philosophy of perpetual acquisition of Knowledge. Apart from academic
curriculum, equally important is our policy to provide value based education and to exhibit the
hidden potentials in students that equip them to approach life with optimism.

MISSION

● Hitech conveys revolutionary technical education and inculcates great outlines of discipline

through our dedicated staff, who shall set global standards, making our students
technologically superior and ethically strong with the help of state-of–art laboratories in all
disciplines.

● Hitech focuses in both education and discipline to achieve greater recognition for our

efforts. The college will build on its traditions of innovation, problem solving and
interdisciplinary collaboration to meet the changing needs of society.

2 b). About the Department of Management Science:

Since its establishment in 2008 the two year program of the HITECH MBA is specifically designed
to respond to the needs of industry and to provide high quality education to students to become
‘industry ready’ and ‘entrepreneurially oriented. The program nurtures the students to enhance their
self and contextual awareness, communication & negotiation skills entrepreneurial skill, business
knowledge and analytical thing, there by shaping them to be leaders to excel in corporate world.

The department has adopted a very pragmatic approach that caters to the ever-changing nature of
the corporate world. It exposes the students to diverse elements of the society like the government,
industries, student and social communities.

VISION AND MISSION OF THE DEPARTMENT

VISION
Developing leaders with value and research knowledge for the purpose of leveraging employability
and entrepreneurship opportunities and, as a result, providing feasible solutions to society with a
focus on continuous learning and improvement.

MISSION

● To groom budding managers with management knowledge and business competencies,

through innovative management pedagogy.

● To transform the hidden – potentials of techno managers to explore opportunities for

entrepreneurship with the background of experienced teaching fraternity and enriched

teaching learning environment

● To disseminate managerial expertise to enhance social growth with a focus of continuous

improvement

● To develop intellectual capability to meet the challenges of global environment with an

adoptive approach to our cultural, ethical and professional norms

3 c). About Rural Innovation Project:

Rural Innovation Project helps students better understand their own competence, leading,
innovation, ideas to grow self-confidence and a can-do attitude that can spread to their academic
pursuits and work , by involving in Rural Innovation project the students learn to tackle tough
problems and challenges in the community services there by they learn problem solving skills and
enjoy the satisfaction of overcoming hurdles. Rural Innovation project opens students to a wealth of
networking opportunities, allowing them to build new relationships within their community or the
place of study as they contribute, Students can meet new people, work with new organizations, and
strengthen their ties to the community. Rural Innovation project allows students to take what they've
learned and apply it beyond the classroom. This offers the opportunity for enrichment and a great
way for them to see how concepts they've learned work in the real world. Taking part in Rurally
relevant projects teaches students valuable skills like ability to follow instructions, teamwork,
problem solving, networking, idea generation, innovation etc.

Outcome of Rural Innovation

CO1: Understood the demographic characteristics and life style of the rural community
CO2: Capable to reach the rural market and able to understand the rural needs

CO3: Able to design a product and services to satisfy the needs of the rural people

CO4: Capability to take up the rural based projects effectively

CO5: Continue his career as one of the citizen of the rural community
 3 2. Background Theory Concepts Related to Rural
Innovation Project
Undertaking a rural innovation project related to milk production involves understanding several
key theoretical concepts. These concepts span various disciplines including agriculture, economics,
and social sciences. Here's an overview of some relevant background theory concepts:

1. Agricultural Innovation Systems ;(AIS)

AIS frameworks help understand how different actors (farmers, researchers, government agencies,
private sector) interact and contribute to the development and dissemination of new technologies
and practices in agriculture.
Emphasizes collaboration and knowledge sharing among stakeholders.

2. Agricultural Economics:
Supply and Demand: Understanding the factors that influence the supply and demand for milk,
including production costs, market prices, and consumer preferences.
Economies of Scale: Larger production units can often produce milk at a lower cost per unit due
to efficiencies gained from larger scale operations.

3. Value Chain Analysis:

Examines the full range of activities required to bring a product from conception to end use,
highlighting how value is added at each stage and identifying opportunities for improvements and
innovation.

4. Sustainable Agriculture:
Practices that meet current food and fiber needs without compromising the ability of future
generations to meet their needs. It includes techniques that reduce environmental impact and
enhance farm profitability.

5. Social Capital:
The networks, norms, and trust that enable participants to act together more effectively to pursue
shared objectives. Strong social capital in rural communities can enhance collaboration and
innovation.

6. Participatory Rural Appraisal (PRA):

An approach used to incorporate the knowledge and opinions of rural people in the planning and
management of development projects. It emphasizes local knowledge and enables people to conduct
their own analysis.
7. Institutional Economics:
Examines the role of institutions and policies in shaping economic behavior and outcomes. For
rural milk production, this could include regulations, property rights, and support programs.

8. Rural Development Policies:

Policies aimed at improving the economic and social well-being of people living in rural areas.
This includes subsidies, grants, and training programs that support milk production and innovation.

9. Consumer Behaviour:
Insights into how consumers make decisions about purchasing dairy products, including factors
like health consciousness, taste preferences, and ethical considerations.

10. Agricultural Marketing:

- Strategies to effectively market milk and dairy products, including branding, market
segmentation, and understanding consumer preferences.

3. Rural Innovation Project:

Name of the Village:

PLACE: PERUR CHETTIPALAYM

DISTRICT: COIMBATORE
 A. Understanding the demographic characteristics and life
style of the rural community

Understanding the demographic characteristics and lifestyle of the rural community in and
around Madurai, a historic city in Tamil Nadu, India, involves examining various aspects such as
population composition, economic activities, social structure, and cultural practices. Here’s a
detailed look.
 POPULATION 11,300

1. Population Composition:

Age Distribution: Rural areas typically have a significant proportion of younger and older
populations, with many in the working-age group (15-60 years).
Gender Ratio: The gender ratio in rural Tamil Nadu is generally balanced, though some
variations might occur due to migration patterns.

2. Education Levels:

Literacy rates in rural Madurai might be lower compared to urban areas, with a significant
portion having primary or secondary education. Efforts to improve educational infrastructure have
been ongoing, resulting in gradually increasing literacy rates.

3. Occupation:
Agriculture: The primary occupation is agriculture, with many families engaged in farming
activities, including the cultivation of crops such as rice, pulses, and millets.
Livestock: Dairy farming is a significant supplementary occupation, with many households
owning cows and producing milk.
Artisanal and Small-scale Industries: Some engage in local crafts, weaving, and small-scale
industries.

4. Income Levels:
 Income levels in rural areas are generally lower than in urban regions. However, government
schemes and agricultural development programs aim to improve financial stability.

Lifestyle and Social Structure

1. Family Structure:

Predominantly joint family systems, though nuclear families are becoming more common.
Strong kinship ties and community support systems.

2. Housing:
Houses range from traditional thatched or tiled roof structures to more modern concrete
buildings, reflecting economic status and developmental progress.

3. Health and Sanitation:

Access to healthcare services is improving, but rural areas may still face challenges such as
limited medical facilities and healthcare personnel.
Sanitation has been a focus of rural development programs, with increasing adoption of
toilets and clean drinking water facilities.

4. Diet and Nutrition:

Predominantly vegetarian diet with rice as the staple food, supplemented by pulses, vegetables,
and dairy products.

Culture life style

1. Festivals and Traditions:

Celebrations of local and regional festivals such as Pongal (harvest festival), Diwali, and
local temple festivals.
Traditional dances, music, and folk arts play a significant role in cultural expression.

2. Religion and Beliefs:

Predominantly Hindu, with temples playing a central role in community life. There are also
Muslim and Christian communities contributing to the cultural mosaic.
3. Social Hierarchies:
Caste system still influences social interactions and community dynamics, though its impact is
diminishing with modernization and education.

Economic Activities

1. Agriculture:

The backbone of the rural economy, with practices ranging from traditional to more modern,
sustainable methods.
Major crops include rice, sugarcane, and various pulses, with an increasing emphasis on cash
crops and horticulture.

2. Livestock Rearing:

Dairy farming is crucial, with many households owning cattle for milk production. This
contributes significantly to household incomes and nutrition.

3. Market Access:

Rural markets are a mix of traditional weekly markets and more permanent structures where
farmers and artisans sell their products.

b. Capable to reach the rural market and able

to understand the rural needs

Understanding Rural Needs

1. Reliable Income Source: Milk production provides a steady income stream for rural
households, contributing to financial stability.

2. Nutritional Benefits: Milk is a vital source of nutrition, especially for children, contributing
to better health and development.

3. Employment Opportunities: Dairy farming creates employment opportunities, both directly

on farms and indirectly through supply chains.

4. Women Empowerment: In many rural areas, women are primarily responsible for dairy
farming, enhancing their economic participation and empowerment.
 5. Sustainability: Sustainable dairy practices can improve environmental health and ensure
long-term productivity.

Estimation of Milk Production Costs in Indian Rupees

1. Purchase of Cows:
Average cost per cow: ₹40,000
Total for 10 cows: ₹40,000 x 10 = ₹4,00,000

2. Shed Construction:
Basic shed cost: ₹2,00,000

3. Milking Equipment:
Milking machine: ₹50,000
Other equipment (buckets, storage cans, etc.): ₹20,000

4. Fodder and Feed Storage:

Fodder storage structure: ₹50,000

Income from Milk Production

1. Milk Yield:
Average milk yield per cow per day: 10 liters
Total yield for 10 cows per day: 10 liters x 10 cows = 100 liters

2. Selling Price:
Average selling price per liter: ₹30
Daily income from milk: 100 liters x ₹30 = ₹3,000
 Monthly income (assuming 30 days): ₹3,000 x 30 = ₹90,000

Profit Calculation (Per Month)

1. Gross Income: ₹90,000

2. Total Monthly Recurring Costs: ₹55,000
3. Net Profit: ₹90,000 - ₹55,000 = ₹35,000

Marketing and Distribution

1. Local Markets:
Selling directly to local consumers or through village cooperatives.
Leveraging weekly markets or fairs to reach more customers.

2. Dairy Cooperatives:
Joining cooperatives like Amul or Aavin, which provide assured procurement prices and support
services.

3.Value Addition:
Producing value-added products like ghee, curd, and paneer to increase profitability.

4.Logistics:
Ensuring proper cold chain logistics to maintain milk quality during transportation

C. ABLE TO DESIGN A PRODUCT AND SERVICES TO SATISFY

THE NEEDS OF THE RURAL PEOPLE

Designing a product and services to satisfy the needs of rural people, especially in the context of
milk production, involves creating an integrated approach that addresses production, processing,
marketing, and support services.
1. Product: Fresh Milk and Value-Added Dairy Products
Fresh Milk: The primary product, meeting daily nutritional needs.
Value-Added Products: Ghee, curd, paneer, and butter to cater to local tastes and increase
profitability.

Services: Support and Infrastructure for Dairy Farmers

1. Training and Support Services:

Training Programs: Regular workshops on best practices in dairy farming, animal husbandry,
and sustainable practices.
Veterinary Services: Regular health check-ups and emergency medical services for cattle.

2.Infrastructure Support:
Cold Storage Facilities: To maintain milk quality.
Milk Collection Centres: Strategically located to ensure ease of access for farmers.
Transportation Services: Refrigerated vans for transporting milk to markets or processing units.

3. Financial Services:
Microloans and Credit Facilities: For initial investment and operational costs.
Insurance Services: Livestock insurance to protect against disease or loss.

Additional Revenue from Value-Added Products

1. Value-Added Product Revenue:

Assuming 30% of milk is used for products like ghee, curd, and paneer, generating an additional
₹20,000 per month.
Total Potential Monthly Profit: ₹25,000 + ₹20,000 = ₹45,000

Implementation Plan
1. Phase 1: Set up infrastructure, purchase cattle, and begin training programs.
2. Phase 2: Start milk production and establish milk collection and cold storage units.
3. Phase 3: Introduce value-added products and expand transportation and marketing services.

D. Capability to take up the rural based projects effectively

Rural areas hold significant potential for effective milk production projects due to several
key factors:

1. Availability of Land: Rural areas often have more available land, which can be used for grazing
and cultivating fodder crops, essential for dairy farming.

2. Traditional Knowledge: Many rural communities have a longstanding tradition of livestock

rearing, which includes knowledge and skills in animal husbandry.

3. Labor Availability: Rural areas typically have a labor force familiar with agricultural and
livestock activities, making it easier to manage dairy farms.

4. Government Support: There are various government schemes and subsidies aimed at promoting
dairy farming in rural areas, which can be leveraged for such projects.

Key Elements of Milk Production

1. Breeding: Selecting high-yielding dairy breeds and ensuring proper breeding practices to
maintain healthy and productive livestock.

2. Nutrition: Providing balanced and adequate nutrition through green fodder, silage, and
commercial feed to enhance milk yield.

3. Healthcare: Implementing regular veterinary check-ups, vaccinations, and disease control

measures to maintain the health of the dairy herd.
4. Milking Practices: Adopting hygienic and efficient milking practices, including the use of
milking machines, to ensure high-quality milk production.

5. Processing and Storage: Establishing facilities for milk collection, chilling, and processing to
maintain quality and extend shelf life, which can help in accessing broader markets.

6. Market Access: Creating cooperative structures or partnerships with milk processors to ensure
fair prices and a stable market for milk producers.

By leveraging these elements, rural-based milk production projects can be highly effective,
contributing to local economies and providing a sustainable livelihood for rural populations.

Continue his career as one of the citizen

of the rural community

Continuing a career as a member of a rural community involved in milk production can be both
rewarding and sustainable. Here are some steps and considerations to make the most of such a
career

Steps for a Sustainable Career in Rural Milk Production:

1. Education and Training:

Formal Education: Pursue courses in agriculture, animal husbandry, or dairy science to gain
foundational knowledge.
Practical Training: Engage in hands-on training programs offered by agricultural universities,
government schemes, or NGOs focused on dairy farming.

2. Starting a Dairy Farm:

Initial Setup: Secure land and facilities for housing cattle, storing feed, and processing milk.
Cattle Selection: Invest in high-quality dairy breeds suited to the local climate and conditions.
3. Management Practices:

Feeding and Nutrition: Implement best practices for feeding, including growing fodder crops
and using balanced feed rations.
Healthcare: Establish a routine for veterinary care, vaccinations, and disease management.
Breeding: Use selective breeding techniques to improve herd quality and milk production.

4. Adopting Technology:

Milking Equipment: Use modern milking machines to improve efficiency and hygiene.
Record Keeping: Utilize software for tracking milk production, health records, and financial
management.

5. Value Addition:

Processing: Explore options for processing milk into products like cheese, yogurt, and ghee to
increase profitability.
Branding and Marketing: Develop a local brand and market dairy products to nearby towns
and cities.

6. Networking and Collaboration:

Cooperatives: Join or form dairy cooperatives to benefit from collective bargaining, shared
resources, and better market access.
Government Programs: Leverage government schemes, subsidies, and loans designed to
support dairy farmers.

7. Sustainability Practices:

Environmentally Friendly Methods: Adopt practices such as organic farming, waste

management, and renewable energy sources like biogas.
Community Engagement: Engage with the local community through training programs,
employment opportunities, and sustainable practices.

8. Continuous Improvement:

Stay Informed: Keep up with advancements in dairy farming techniques, market trends, and
policy changes.
Professional Development: Attend workshops, conferences, and seminars to continue learning
and networking.
 Benefits of a Career in Rural Milk Production:

Economic Stability: Provides a steady source of income and potential for growth.

Community Development: Contributes to the overall development of rural areas through job
creation and economic activity.

Sustainability: Promotes sustainable agricultural practices and food security.

Quality of Life: Offers a fulfilling lifestyle connected to nature and community values.

4.Conclusion
 Building a career in milk production within a rural community offers a promising and
sustainable pathway for personal and community development. By leveraging local resources,
traditional knowledge, and modern agricultural practices, individuals can achieve economic stability
and contribute to rural prosperity. Engaging in continuous education, adopting advanced
technologies, and participating in cooperative structures can further enhance productivity and
market access. Ultimately, a career in rural milk production not only provides a fulfilling livelihood
but also fosters sustainable practices and strengthens the socio-economic fabric of rural areas.
1 c.

2 d.

3 e. Continue his career as one of the citizen of the rural

community

4
Photos:

2 :

References: