Hatsun Agro

Topics: Milk, Dairy farming, Cattle Pages: 8 (2334 words) Published: November 17, 2012
Balamurugan A
Submitted to
Prof. Nimruji Prasad
Hatsun Agro Product Limited
Why Hatsun?
It is more challenging to analyze the CSR activities of a privately owned organization over a co-operative or a NGO as, that’s why Hatsun is chosen over Amul or Aavin. A diary based company is chosen because of its effective impact on society and the raw material procured is based on rural part. Any CSR activity will have a significant impact empowering the overall country from the bottom. Moreover, analyzing a relatively less known company is always an interesting challenge, hence Hatsun over Amul. Value Chain Analysis:

1. Inbound Logistics
Raw material Procurement - Overall Process:
Being an Agro product based company with milk as its main raw material; Hatsun collects the fresh milk directly from the farmers through their milk banks-‘Hatsun Milk Bank’ (HMBs). Milk is collected from the farmers in these HMBs twice a day (morning and evening) and transported through their cold storage vehicles/trucks to the Chilling centers and from there to the dairy plant. Process:

Milk Proc. (Farmers) HMB (Testing- Data entry)  Transp.CC(Quality confirmation)->Dairy farm. Activities involved:
i.) Quality test 1: Hatsun has around 4,500 'Hatsun Milk Banks' (HMBs) covering over 8,000 villages. Everyday 3 lakh plus farmers pour their milk at these HMBs. At the HMBs every farmer's milk is tested for its quality. Based on the quality, per liter price of milk is determined with the help of a two way price chart. The two parameters tested for determining quality are Fat and SNF. Based on the quality and the number of liters poured by the farmer, his or her total amount is calculated. This process is done for each and every farmer who pours milk at the HMB. ii.) Database management: Once all the tests are done, each farmer's data (quantity, Fat & SNF% along with the farmer's unique number) is entered in a scan-able data sheet. This sheet is sent to the Hatsun's computer center where it is scanned and based on the same the farmer is paid every week on a fixed day of the week. The entire farmer's data base is managed through a state-of-the-art computer software system. iii.) Transportation: Hatsun operates more than 800 rural milk procurement routes. These routes have a regular route plan with the timing to pick up milk cans for each HMB/village in the morning and evening. All the farmers have to pour the milk before the milk truck reaches their HMB. Once all the farmers have poured their milk, the milk is collected in cans and loaded on to the trucks on the precise time fixed for picking the cans at the HMB. iv.) Chilling Center (CC)- Quality Confirmation:

After collecting milk from all the allotted HMBs the milk procurement vehicle arrives at the Hatsun Milk Chilling Center (CC). The vehicle has to arrive at the milk chilling center at the fixed arrival time for the vehicle at the CC. At the CC the milk is tested again for more parameters than at the HMB. Once the milk is tested organoleptic ally it is weighed, a sample is taken for more detailed tests and pumped to the chilling unit. The samples are taken for detailed testing. Once all the vehicles arrive and all the milk transferred for chilling the samples are taken for testing. Once the tests are completed and the suitability of the entire CCs milk is confirmed to meet Hatsun's strict quality norms, the milk is loaded into a road milk tanker and sent to the dairy. v.) Dairy farm: At the dairy the milk is put through more tests before taking it up further processing. 2. Operations - The dairy farms make use of the latest technology and the practices are of international standards with care to its employee. The quality and hygiene is highly stressed in every step of the process as it is directly related to the products life. 3. Outbound Logistics - Like any diary company, Hatsun follows a typical Distribution channel in milk and related products. Production plant -> CnF...
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