V OL U M E 2 4 - OC T OB E R 2 0 1 4

Wish you Happy and Prosperous Diwali

2

Dear Colleagues,

We are in the midway of our current financial year. The much an-

ticipated flush season has just set in and progressing very slowly.

We have to gear up and achieve the committed figures in both pro-

curement and marketing in the next six months.

The new milk variant “ENRICH” which was launched in mid-

September has received a very good response from the market and

has crossed 5,000 LPD. We hope to touch 10,000 LPD very soon.

There is a distinct improvement in the operational efficiencies at all

our Dairy Plants. The interventions through small group activities

(Quality Circles) have had a significant impact in the reduction of

costs. We should step up the tempo and further intensify activities

in this sphere.

Wishing you & family a very Happy & Safe Diwali

With Best Wishes,

P. Gopalakrishnan, Chief Executive Officer

3

This is an article published in “The Weekend Leader” magazine brought out in Vol 5 Issue 37 by P C Vinoj Kumar under the title “The

story of Creamline Dairy Products had bitter moments too!”. The article is published here ‘as it is’ so that every Jerseyite can

read the ‘Journey of Jersey’ in our Managing Director’s words.

Fortune favors the brave, it is said. The success story of Hyderabad entrepreneur K

Bhasker Reddy, who started Creamline Dairy Products in the late 1980s with three

friends, is a good case in point. Creamline sells milk and milk based products like yo-

ghurt, curd, lassi, and ice creams under the brand name of Jersey.

How Reddy built his company that was on the verge of closure in 1991 into a Rs. 800-

crore turnover firm in just over two decades makes a remarkable entrepreneurial jour-

ney.

Creamline MD K Bhasker Reddy attributes his success to team work and the support he

received from his directors. When Reddy entered the dairy sector, private players were

not allowed to sell milk.. They could sell only milk products. The milk market was mo-

nopolized by government brands like Aavin in Tamil Nadu, Vijaya in Andhra Pradesh,

Nandini in Karnataka and Milma in Kerala.

Despite the constraints Reddy made a bold foray into the dairy sector. Incorporated in

1986, Creamline launched its ‘Jersey’ brand of flavored milk and ghee in 1989. They

initially processed about 500 liters of milk daily from the plant they had set up in Medak

district, about 40 km from Hyderabad.

They started with just 12 employees. “We supplied flavored milk and ghee to shops, but

we got into a jam when our payments got delayed. We ran out of cash for buying the

raw materials and milk,” recalls Reddy, managing director, Creamline Dairy.

All four promoters were first generation entrepreneurs. They were technically competent

since they were all graduates in dairy technology. But they learned that business was a

different cup of tea. Hailing from a village in Nalgonda district, Reddy graduated from

Osmania University in Hyderabad in 1983, and wanted to do his masters in the US. But

as destiny would have it he never got his visa. So he began to explore business options in the dairy sector.

“I always wanted to do something on my own. Even if I had done my masters, I would have still got into business,” says Reddy.

For about a year and a half, he visited various cooperative dairies in Andhra Pradesh and felt motivated to start a milk processing plant.

He made some preliminary studies and conducted surveys in shops to assess the demand and supply of milk products. By now three

other friends had joined Reddy. The estimated cost for setting up a plant to make flavored milk and ghee, their first products, was Rs.40

lakh. They raised funds from different sources with great difficulty. “Banks were not willing to sanction loans. Not many believed private

players could do well in a sector, where the government was wielding complete control.

“However, we persevered and ultimately received a loan of Rs.27 lakhs from State Finance Corporation (SFC),” says Reddy.

The four promoters invested Rs.50, 000 each. They purchased a 2-acre land in Medak, where they set up their first plant and began

operations in 1989. Initially, they processed about 500 liters of milk daily. They made flavored milk and ghee and supplied some milk in

cans to a military canteen in Hyderabad. But they were in trouble when the shops delayed payments. “We got Rs.2 lakh from Bank of

Saurashtra as working capital but it was insufficient to meet the shortfall we were facing given that our outflow was about Rs.4-5 lakhs

every month. Creamline entered the milk market in 1991-92.

“We faltered on our quarterly repayments to SFC and they came to seal our premises,” says Reddy. The promoters salvaged the s itua-

tion by raising some money pledging family jewels.

Just when it seemed they were sinking into a bottomless pit, the Narasimha Rao government introduced economic reforms in the coun-

try in late 1991. With deregulation coming into force, Creamline suddenly felt shackles coming off them and opportunities opening up.

Creamline entered the milk market, and started selling Jersey milk in pouches. They advertised in local papers and sought subscribers

for direct home delivery. “There was good response. We received about 169 calls on the first Sunday we placed an ad in a Telugu pa-

per. The next day we personally visited all the households and took their subscriptions. In a month’s time we had about 500 subscribers

for 1 liter milk daily,” says Reddy.

Jersey milk was priced on par with government brand Vijaya at Rs.6 per 1 liter packet. For customers who were annoyed with the rude

behavior of milk agents of Vijaya, the private player was a welcome option that they were willing to check out. Within 6 months, their

Journey of Jersey

4

supply grew to 1600 liters daily. “As our subscription base started expanding exponentially, our milk procurement levels also went up,”

says Reddy. The company looked for ways to increase its procurement. Two directors were in touch with cattle owners. They sup plied

them with seed to grow grass for their cattle and did everything possible to increase the productivity at the sourcing level.

Unable to meet the demand from existing sources, they entered into an agreement with the Cooperative Dairy of Guntur, which was

supplying good quality buffalo milk to Vijaya. They paid Re. 1 more per liter than what Vijaya paid them. “We procured 5000 l iters of milk

daily from them, and then gradually increased the quantity. By 1994 we were procuring around 30,000 liters from Guntur. 5000 liters

only was coming from other sources,” Reddy reveals.

Their turnover touched Rs.32 crores in 1994 from a mere Rs.32 lakh in 1991. But a fresh crisis hit the company in this period when the

Guntur Cooperative stopped supplying milk giving them a week’s notice, allegedly under pressure from VIjaya. “The government dairy

became insecure. They were losing their market share to us and we were buying milk from their source. Some people created panic

among their employees that they would soon lose their jobs if we were allowed to grow. Their employees even struck work on this is-

sue,” says Reddy.

Since over 80 percent of the milk was coming from Guntur, Creamline’s operations were hit hard. “We were in turmoil. Since we could

not procure milk from any of the cooperative dairies in AP, we brought milk from faraway places like Madurai in Tamil Nadu and Jalgaon

in Maharashtra.”

Their milk quality suffered, as the mixture of cow milk from Madurai and buffalo milk from Jalgaon affected the milk’s color, flavor and

odor. They had to deal with customer complaints, while

straining every nerve to maintain supplies.

Creamline handles 6 lakh liters of milk daily in 120 chilling

centers and 7 processing plants. In adversity, they came up

with a master strategy to find a permanent solution to the

problem. They identified five enterprising employees from

dairy cooperatives in Guntur and Prakasam districts and

through them established five chilling centers.

Both Creamline and the five new entrepreneurs invested in

the initiative. They also got bank loan. Soon, farmers started

supplying them with milk. Within a year all five chilling cen-

ters became operational, and they had 50,000 liters of milk

supply daily.

“We worked really hard to set up the plants in record

time,” says Reddy, who says that at one point in des-

peration they had begged Vijaya to enter into a deal with

them. “We went to Vijaya and met their chairman and MD

and begged them. We said we would not procure milk di-

rectly from farmers. We were willing to buy milk from Vijaya, even at a higher price, but they did not listen to us.

“If Vijaya had agreed then, we would not have grown to this level,” says Reddy.

From then on there was no looking back. The company grew from strength to strength. In 1998, there was a glut in supply of milk. While

their requirement was 2 lakh liters daily, farmers had built capacity for 3.20 lakh liters. For Reddy, it was a perfect opportunity to diversi-

fy into more value added products. Gradually, the company got into production of milk powder, yoghurt, curd, lassi, paneer, cooking

butter, sweets like doodh peda, malai laddu and ice creams.

Creamline has grown into a conglomerate with 1200 employees, handling 6 lakh liters of milk daily in 120 chilling centers, and

7 processing plants. It has a marketing presence in all southern states.

Reddy is quite modest about his accomplishment, and sits in a simple office in Hyderabad. He insists that the credit for the success of

the company should equally go to all three directors, his friends, who have been with him through thick and thin. “It was team work,”

says the son of a government ayurvedic doctor, who is still proud of his middle class roots. A socially conscious person, the 53-year-old

entrepreneur had been with Rotary, Round Table, and was chairman of the Andhra Pradesh Association of Deaf and Dumb from 1995 –

2005.

Reddy has a son, who is doing his masters in engineering, and a daughter who is in class 12.

- See more at: http://www.theweekendleader.com/Success/1974/milky-way.html#sthash.s8eypX1Q.dpuf

Wishing you & family a very Happy & Safe Diwali

5

Inauguration of Chilling Center’s

1. 28th Unit in Jammadevipeta, Visakhapatnam District, Vijaya-

wada Division

2.25th Unit in Rajampeta, Kadapa District, Chennai Division

3. Bangalore Division: Santhemaralli Unit

Ganesh Vigraha Pratista Mahostavam in Hanuman Junction Plant on 04/04/2014. The temple was constructed just beside the main

gate of the plant. The General Manager, Mr.Lakshmi Prasad with his wife performed Homam and puja.

1 2

3

6

CDPL Quality Circle Group Achievements - As on September 2014

7

JT feels very proud that Production Manager for Chennai Plant, Mr.

S.Ramachandra Reddy’s, son, Mr. S.Rajasekar Reddy has got admission in MBA

(International Business) in Indian Institute of Foreign Trade, New Delhi. It is one of

the prestigious and renowned business schools in India and also listed in the top

10 colleges.

It is a postgraduate degree designed to develop the capabilities and resources of

managers in the global economy. He believes that it is ideal for his son to estab-

lish and accelerate his career towards international business. JT congratulates on

behalf of CDPL Family.

Mr. Madhu Babu, Dy.Manager, Maintenance cele-

brates his daughter’s first birthday. JT conveys

best wishes to the baby girl.

K.Divya, daughter of Mr. Prasad, In charge of FG

& Dispatch, Madanapalli has obtained aggregate

marks of PCM 98.3% in 12th Exam and overall

97.3% . In JEE (Main Exam) she secured ‘All India’

category rank : 1832 and obtained seat in IIST

B.Tech admission 2014 in Bangalore.

JT Congratulates and wishes her a bright future.

Mr. Prashanth, HYD Division, HRD celebrates his son’s ‘Akshara Abhyasam’ on 4th July 2014. JT

Conveys best wishes to the boy.

Hanuman Junction, Jr.Exec - HR,

Mr B. Dileep Babu, weds

Kum.Chandrusha on 15/05/2014.

Baby.Naga Sai Akashya (daughter of

Soma Sekhar, Dy.Manager, HR—

Hanuman Junction Plant) as Gopika in

school event of Krishnastami.

8

Staff Weddings

I AM GREEN !

GREEN IS WHAT I LOVE….GREEN IS WHAT I SEE….

GREEN IS WHAT I FEEL IN ALL AND GREEN IS CARVED IN ME!

THE TWEETING OF THE BIRD, THE SHIVERING NEW LEAVES,

THE SPARKLING FLOWING WATER AND THE HAPPINESS IT GIVES….

THE BLOOMING MOTHER NATURE WITH HER OPEN BLUE SKY

MAKES ME FEEL “THE TRUE LOVE” AS MY SPIRIT SOARS HIGH!

BLESSED ARE THOSE EYES WHO WITNESS NATURE’S BEAUTY

TO HELP PRESERVE IT & EXPLORE IT, IS OUR UTMOST DUTY!! …….BY TANUSHREE DAS

BMC Mohadi Incharge Mr. Jitendra Landge, weds Ashwini on

09/05/2014

Naidumangalam Lab Assistant Mr.M.Elumalai Weds E.Bharani on

02/07/2014.

Madanapally Operator-Production Mr. Hari Keshav weds Kalavathi

on 12/03/2014

Madanapally Maintenance Executive Mr. Syed Ahmed weds

Reshma on 14/08/2014

3

1 2

4

9

A Priest and a Bus Driver

A priest dies and is waiting for his turn at the Heaven’s Gate. Ahead of him is a guy, dressed Colorful with dark Rajnikanth Glasses.

Priest – Speaks out in a booming voice; I am a Head Priest of a Church for the last 40 years. How about u ??

Driver – Hello Sir, I am a Bus Driver.

God to the Driver – Smiles and says (After consulting the Ledger), please take this Silken Robe and Gold Scarf and enter into the

kingdom of Heaven.

Now, it’s the turn of the Priest.

God to the Priest - Please take this Cotton Robe and enter into the kingdom of Heaven.

Priest to God – (Screwed up and says..) “How is that foul mouthed rash Driver is given a Silken Robe and Golden Scarf whereas me

just Cotton Robe who spent the whole life preaching your name and goodness.

God to Priest – Results my dear. While u preached, people slept, but when the driver drove, people prayed.

Moral - It’s Performance that counts, not the Position. —by Manoranjan Guru, Procurement, Corporate

10

1. First Important Lesson - "Know The Cleaning Lady"

During my second month of college, our professor gave us a pop quiz. I was a conscientious student and had breezed through the

questions, until I read the last one: "What is the first name of the woman who cleans the school?"

Surely this was some kind of joke. I had seen the cleaning woman several times. She was tall, dark-haired and in her 50s, but how

would I know her name? I handed in my paper, leaving the last question blank. Just before class ended, one student asked if the last

question would count toward our quiz grade.

"Absolutely," said the professor. "In your careers, you will meet many people. All are significant. They deserve your attention and care,

even if all you do is smile and say "hello."

I've never forgotten that lesson. I also learned her name was Dorothy.

2. Second Important Lesson - "Pickup In The Rain"

One night, at 11:30 p.m., an older African American woman was standing on the side of an Alabama highway trying to endure a lashing

rainstorm. Her car had broken down and she desperately needed a ride. Soaking wet, she decided to flag down the next car.

A young white man stopped to help her, generally unheard of in those conflict-filled 1960s. The man took her to safety, helped her get

assistance and put her into a taxicab.

She seemed to be in a big hurry, but wrote down his address and thanked him. Seven days went by and a knock came on the man's

door. To his surprise, a giant console color TV was delivered to his home.

A special note was attached. It read: "Thank you so much for assisting me on the highway the other night. The rain drenched not only

my clothes, but also my spirits. Then you came along. Because of you, I was able to make it to my dying husband's bedside jus t before

he passed away. God bless you for helping me and unselfishly serving others."

Sincerely, Mrs. Nat King Cole.

3. Third Important Lesson - "Remember Those Who Serve"

In the days when an ice cream sundae cost much less, a 10 year-old boy entered a hotel coffee shop and sat at a table. A waitress put

a glass of water in front of him. "How much is an ice cream sundae?" he asked. "50¢," replied the waitress.

The little boy pulled his hand out of his pocket and studied the coins in it.

"Well, how much is a plain dish of ice cream?" he inquired. By now more people were waiting for a table and the waitress was growing

impatient. "35¢!" she brusquely replied.

The little boy again counted his coins. "I'll have the plain ice cream," he said. The waitress brought the ice cream, put the bill on the

table and walked away. The boy finished the ice cream, paid the cashier and left.

When the waitress came back, she began to cry as she wiped down the table. There, placed neatly beside the empty dish, were two

nickels and five pennies. You see, he couldn't have the sundae, because he had to have enough left to leave her a tip.

4. Fourth Important Lesson - "The Obstacles In Our Path"

In ancient times, a King had a boulder placed on a roadway. Then he hid himself and watched to see if anyone would remove the huge

rock. Some of the king's wealthiest merchants and courtiers came by and simply walked around it. Many loudly blamed the King for not

keeping the roads clear, but none did anything about getting the stone out of the way.

Then a peasant came along carrying a load of vegetables. Upon approaching the boulder, the peasant laid down his burden and tried to

move the stone to the side of the road. After much pushing and straining, he finally succeeded. After the peasant picked up his load of

vegetables, he noticed a purse lying in the road where the boulder had been. The purse contained many gold coins and a note f rom the

King indicating that the gold was for the person who removed the boulder from the roadway. The peasant learned what many of us nev-

er understand - "Every obstacle presents an opportunity to improve our condition."

Five Lessons About How To Treat People -- Author Unknown

11

5. Fifth Important Lesson - "Giving When It Counts"

Many years ago, when I worked as a volunteer at a hospital, I got to know a little girl named Liz who was suffering from a rare and seri-

ous disease. Her only chance of recovery appeared to be a blood transfusion from her 5-year-old brother, who had miraculously sur-

vived the same disease and had developed the antibodies needed to combat the illness. The doctor explained the situation to her little

brother, and asked the little boy if he would be willing to give his blood to his sister. I saw him hesitate for only a moment before taking a

deep breath and saying, "Yes, I'll do it if it will save her."

As the transfusion progressed, he lay in bed next to his sister and smiled, as we all did, seeing the color returning to her cheeks. Then

his face grew pale and his smile faded. He looked up at the doctor and asked with a trembling voice, "Will I start to die right away?".

Being young, the little boy had misunderstood the doctor; he thought he was going to have to give his sister all of his blood in order to

save her. The End of 5 Lessons

The Man Who Thinks He Can

If you think you’re beaten, you are.

If you think you dare not, you don’t.

If you’d like to win, but think you can’t,

It’s almost a cinch you won’t.

If you think you’ll lose, you’ve lost.

For out in the world we find,

Success begins with a fellow’s will,

It’s all a state of mind.

If you think you’re out-classed, you are;

You’ve got to think high to rise.

You’ve got to be sure of yourself,

If you ever want to obtain a prize.

Life’s battles does not always go,

To the stronger or faster man.

But, soon or late, the man who wins,

IS THE MAN WHO THINKS HE CAN!!!

The Elephants

Journey to pay

respect, but How

Did they Know?

Lawrence Anthony, a legend in South Africa and author of 3 books including the bestseller, The Elephant Whisperer. He bravely rescued wildlife and reha-bilitated elephants all over the globe from human atrocities, in-cluding the courageous rescue of Baghdad Zoo animals dur-ing US invasion in 2003. On March 7, 2012 Lawrence Anthony died. He is remembered and missed by his wife, 2 sons, 2 grand-

sons, and numerous elephants.

Two days after his passing, the wild elephants showed up at his home led by two large matriarchs. Separate wild herds arrived in

droves to say goodbye to their beloved 'man-friend'.

A total of 31 elephants had patiently walked over 112 miles to get to his South African House. Witnessing this spectacle, humans were obviously in awe not only because of the supreme intelligence and precise timing that these elephants sensed about Lawrence's passing, but also because of the profound memory and emotion the beloved animals evoked in such an organized way: Walking slowly, for days, making their way in a solemn one-by-one queue from their habitat to

his house.

Lawrence's wife, Francoise, was especially touched, knowing that the elephants had not been to his house prior to that day for well over 3 years! But yet they knew where they were going. The elephants obviously wanted to pay their deep respects, honoring their friend who'd saved their lives - so much respect that they stayed for 2 days 2 nights without eating any-thing. Then one morning, they left, making their long journey

back home.

SOMETHING IN THE UNIVERSE IS GREATER

AND DEEPER THAN HUMAN INTELLIGENCE.

12

Malavally Plant Activities in Pictures

1. Flag Hoisting by Jay prakash Gupta; 2. Paying Respects to National Flag;

3.Kabaddi Competition; 4. Independence Day speech by Employees;

5. Starting Cricket Tournament;

1 2

3

4

5

13

Students of Vishanavi High School from classes

6th to 10th, have visited our MCC Jangoan on

15/07/14.

Best Employee of the Division Award: Given during Monthly Meeting

in Vijayawada Division:

Best Employee – Mr. N.M Kamaraju, Asst. Manager (Procurement) Zonal I/

C for East Godavari Dist. Award presented by GM, Mr G.Lakshmi Prasad.

Best Chilling Center Award presentation goes to G.Ragampeta.

Independence Day Celebrations @ Hanuman Junction Plant

14

Madanapally Plant Activities in Pictures

1. Vinayaka Chavithi Pooja; 2. Health Camp; 3.Rayalaseema

Children’s Academy plant visit; 4. Employee Engagement Activ-

ity; 5. Shuttle Court Opening; 6. Flag Hoisting

1 2

3

4

4

5 6

15

Jersey ‘ENRICH’ was

launched in Hydera-

bad Market in the IInd

Week of September

2014

16

Jersey Times Invites all Employees to share ideas, experiences, occasion photographs, achievements, success stories either at your work-

place or in your family, along with your scanned photo to phanimadhav.rss@creamlinedairy.com.

6-3-1238/B/21, As if Ave nue,

Rajbh avan Roa d, Soma jiguda,

Hyderabad —500 082

Phone: 040-23412323

Fax: 040-23323353

E-mail: jersey@creamlinedairy.com

Vis i t updated websi te :

www.crea ml inedair y.co m

Creamline Dairy Products Limited (CDPL) is customer centric Private Dairy em-

ploying modern machinery and applying advanced technologies. It is the leading man-

ufacturer of Dairy products dealing in milk and milk related products with the Brand

name “Jersey”. It constantly endeavors to give its customers the best products by way

of continuous research and innovation. The company meets every day needs for nutri-

tion and hygiene, with variants that help people feel healthy, look healthy and get more

out life. The Company is Head Quartered at Hyderabad and its operations are spread

across four states in Andhra Pradesh, Karnataka, Tamil Nadu and Maharashtra

Our Vision

“To emerge as a Leader in Dairy Foods with Global Presence through Business Excel-

lence and ensuring Customer Delight”

Our Mission

“To grow continuously, offering value added Dairy Products and gain customers’ confi-

dence through Innovative Practices”

Our Values

“We act with a sense of pride adopting ethical practices and compassionate approach”

Positive and fun spirit

Collaborative: support other employees

Members of one team – CDPL India - first

Accountable - we do what we say

Proactive – be responsible

Respect for all associates as individuals

Honesty- Way of Life

As a Jerseyite,

I treat the business as I would my own

I treat others as internal customers

I am candid and constructive with feedback

I complete all work to high standards, and re-

quire this from others

If I make a mistake, I own up to it, I correct it, I

learn from it

If I see a problem, something that needs to be

changed, then I do whatever I can to change it,

otherwise I am part of the problem

I understand the Sense of Urgency in my work ,

and will not be a hindrance to other’s work

Published by Creamline Dairy Products Limited. Write your Feedback & Suggestions on this issue‘ to phanimadhav.rss@creamlinedairy.com.