Milma Pathanamthitta dairy organization study

An organization study at milma pathanamthitta dairy 2017.

1. Organization study at TRCMPU Ltd, Pathanamthitta Dairy
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Karunya school of management, Coimbatore
AN ORGANIZATION STUDY AT TRCMPU LTD,
PATHANAMTHITTA DAIRY

Industrial Training Report submitted to
Karunya School of Management
In partial fulfilment of the requirements for the award of the degree
Master of Business Administration
RIBU ALEXANDER
(PR16MS1023)

Under the guidance of
Prof. FRANCIS JACOB PETER KUMAR
Associate professor

KARUNYA SCHOOL OF MANAGEMENT
KARUNYA UNIVERSITY
[Declared as a Deemed University under sec.3 of the UGC Act, 1956]
JUNE 2017

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Karunya school of management, Coimbatore


CERTIFICATE


This is to certify that the industrial training report entitled „AN ORGANIZATION STUDY
AT TRCMPU LTD, PATHANAMTHITTA DAIRY ‟ is a bonafide record of work done by
Ribu Alexander (PR16MS1023) under my supervision and submitted in partial fulfilment
for the award of the degree of Master of Business Administration of Karunya University.



Place:
Date: Research Supervisor

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Karunya school of management, Coimbatore

DECLARATION
I, Ribu Alexander hereby declare that the industrial training report entitled „AN
ORGANIZATION STUDY AT TRCMPU LTD, PATHANATHITTA DAIRY’ is a
bonafide record of the original research work carried out by me in the department of
Management studies, Karunya university and that it has not been submitted earlier elsewhere
for the award of any Degree, Diploma or Fellowship.


Pathanamthitta RIBU ALEXANDER

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Karunya school of management, Coimbatore

ACKNOWLEDGEMENT


I would like to express my sincere gratitude to all who helped me to complete this project
successfully through their timely guidance, help and support.
First and foremost, I wish to thank GOD almighty for his immense blessings which helped
me to complete the study successfully.
I would like to express my sincere gratitude and thanks to my esteemed guide, Prof. F J
Peter Kumar, whose expert advice helped in each step throughout the preparation of this
project work.
I am immensely indebted to Mr. Shyju R S, Personnel Officer, Milma Dairy, Pathanamthitta,
who gave immense support and guidance for completing this project in a successful manner.



RIBU ALEXANDER

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Karunya school of management, Coimbatore


TABLE OF CONTENTS
CHAPTER TITLE PAGE
1 Introduction 07 – 10
2 Industry Profile 11 – 14
3 Company Profile 15 – 23
4 Product Profile 24 – 31
5 Organization Chart & Functional
Departments
32 – 61
6 Porter‟s five force analysis 62 – 64
7 SWOT Analysis, Findings and Suggestions 65 – 69
8 Conclusion 70 – 71
Bibliography 72

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LIST OF FIGURES
Sl. No TITLE PAGE
3.1 Structure of KCMMF 20
5.1 Organization chart of Milma 33
5.2 Structure of human resource department 35
5.3 Structure of finance and accounts department 40
5.4 Structure of Marketing Department 43
5.5 Structure of production department 49
5.6 Functions of Production Department 50
5.7 Structure of Quality Control Department 54
5.8 Structure of Procurement and Inputs Department 56
5.9 Structure of Maintenance and Engineering Department 59
6.1 The structure of Porter‟s five force analysis 63

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CHAPTER 1
INTRODUCTION

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Karunya school of management, Coimbatore
1. INTRODUCTION
Organizational study is the systematic study and the careful application of knowledge about
how people – as individuals and as groups – act within an organization. An organizational
study encompasses the study of organization from multiple viewpoints, methods, and levels
of analysis. For that my organization study has been carried out in MILMA Pathanamthitta
dairy.
The Kerala Co-operative Milk Marketing Federation (KCMMF) or Milma was
registered as a co-operative society in 1980 with its head office in Thiruvananthapuram. It
was brought under the Operation Flood program of the National Dairy Development Board.
KCMMF is a Federation of three Regional Milk Unions, the ERCMPU, TRCMPU and
MRCMPU. It follows a co-operative structure and one of the most profitable cooperatives in
Kerala State. In 1983, it took over (absorbed) the production and milk marketing facilities
under the Kerala Livestock and Milk Marketing Board. The board was later renamed to
Kerala Livestock Development Board.
The company was established on 22nd April 2010. Earlier there was a milma dairy
plant in Kumbazha, Pathanamthitta, which had been started in 2001, which was later shifted
to Mammoodu, Pathanamthitta. The new Milma has a processing capacity of 60.000 LPD.
Milk is very essential for our daily life. Most people include milk in their diet as it is
regarded as the complete food. Milk contains all the essential nutrients that are needed for
humans. In the dairy market of Kerala, the products of milma are accepted and are considered
to be of good quality by the consumers. They are successful in capturing 45% of the market
share. There are also a variety of other by products that are manufactured in Milma. All these
reasons encouraged me to do my study in Milma.
1.1 OBJECTIVES OF THE STUDY
The organizational study provides an excellent opportunity for experiencing and
understanding an organization in its full range. It enables the student to find out the
correlation between the theory and the real business situation.
 To study the organizational structure of Milma dairy.
 To study the market and familiarize with the products.
 To get fairly acquainted with the work culture.

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 To understand the industrial profile.
 To find out the various managerial process handled by Milma.
 To conduct SWOT analysis.
 To study the various functions of each department.
1.2 SCOPE OF THE STUDY
The study enables to know about the various departments and the overall functioning
of Pathanamthitta dairy. The study gives the details about milk procurement and production
in Pathanamthitta dairy and marketing of milk products in Kerala. The study also enables to
know about the dairy industry in India, special emphasis given to Kerala market.
1.3 DURATION OF THE STUDY
The study was conducted for a period of 30 days, from 1
st
June 2017 to 30
th
June
2017.
1.4 METHODOLOGY OF THE STUDY
A detailed descriptive study was conducted at the Pathanamthitta dairy to extract the
details. Data were collected from both primary and secondary sources.
1) Primary sources
 Direct observation.
 Informal interview with managers and workers.
 Discussion with various staff members.
2) Secondary sources
Secondary sources are those data already that have been already collected by some
other person for his purpose and then published. The secondary data sources used are:
 Journals and magazines
 Websites
 Periodicals
 Brochures

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1.5 LIMITATIONS OF THE STUDY
 Time is the most critical limiting factor in this study.
 Most of the data required are not accessible because of the unwillingness of certain
departments to disclose the information.
 The unwillingness to disclose all the information from certain department.
 Busy work schedule of the employees is one of the other main factors.

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CHAPTER 2
INDUSTRY PROFILE

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2. INDUSTRY PROFILE
2.1 INTERNATIONAL SCENARIO
The international dairy federation, with its head quarters Brussels, was established in 1903
and consists of 32 member countries throughout the world.
UNICEF has been the motivating force for establishing a dairy industry in many under
developed countries. One of these is in India, where large modern processing plants have
been set up to process locally produced milk or to reconstitute milk from donated or
purchased milk fat and powder. Domestic milk production has increased in India and a part of
the pasteurized milk is provided free to children in the larger cities through UNICEF.
The first co-operative artificial breeding association was organized in Denmark in 1936.
There are now many such associations which helped the diary industries. After 1950s dairy
industries faced a wide range of development throughout the world.

2.2 NATIONAL SCENARIO
Indian dairy sector has come a long way from price independence era of acute milk
shortage and dependent on foreign aid in the form of milk powder to meet the growing milk
demand. As a result of this a dairy co-operative society was registered in 1913 for meeting
this problem. Later Kaira District milk supply union was formed at Anand. It was an
important land mark in the history of the co-operative dairy sector. Inspired by the
achievements of this institution, the Government of India constituted a National Dairy
Development Board in 1965.

ANAND PATTERN
ANAND is a small village of farmers in Kaira District of Gujarat. ANAND Milk Union
Limited is a Co-operative Society formed by the farmers of Anand Village for the purpose of
distribution of milk. Now the world famous Anand Milk Union Limited is popularly known
as Amul.

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The Anand Milk Union Limited has a three tier structure.
1. Village level Primary Co-operative Society called APCOS.
2. District Milk Producers Union.
3. State Level Milk Marketing Federation.

2.3 NATIONAL DAIRY DEVELOPMENT BOARD
National Dairy Development Board was developed by the Government for the purpose of
organising, planning and executing the dairy development programmes in the country. This
board, with the help of government, got assistance valuing Rs. 120 crores under flood
programmes. Under this scheme financial assistance was provided to various state
governments and other agencies for implementing development scheme.

2.4 OPERATION FLOOD
Operation Flood is an important move in the history of dairy development in India. Operating
Flood was conceived and formulated by National Dairy Development Board during the fourth
plan. It aimed at establishing a broad base for acceleration and development of the dairy
industry sponsored by the European Economic Community through world food programme.
Operation Flood was conducted to meet India‟s rapidly increasing need for milk and milks
product, and making dairy industry capable of viable and self-sustaining growth. The
ideology followed by Operation Flood was the remunerative linking of the rural milk
production centre with the urban demand centre so as to build up a viable dairy industry.

2.5 STATE SCENARIO
Dairy co-operatives were also developed in Kerala as a part of operation flood. Dairy
co-operatives have a three tier structure in Kerala with primary milk supply society at the
base and milk supply union at the district level and a state level federation. This co-operative
society follows the Anand pattern of dairy development scheme. Apart from the state
federation two regional unions were also formed in our state.

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2.6 COMPETITORS
Milma holds more than 45% market share, who is the front leader in the market. There are
more than 30 competitors in Kerala against Milma.
Some of other competitors are:
PRODUCT COMPANIES
 Milk Malanadu, Royal, A-one, Ksheera, Balagi, Star etc
 Ghee RKG, Nambeeshan, Namboodiri, Malanadu, Britannia etc
 Curd Malanadu, Milky mist
 Ice cream Uncle john, Lazza, Amul, Merryboyetc
 Milk powder Every day, Amul, Nestle, Nido
 Sip up Merriboy, Bombay pepsi, Mr.cool sip up etc
 Water Classic, Aquatic, Himalaya, Bisleri water
 Chocolate Cadbury, Nestle, Amuletc
 Mango drink Frooti, Jive
 Paneer Milky mist

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CHAPTER 3
COMPANY PROFILE

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3. COMPANY PROFILE
3.1 HISTORY OF MILMA
Milma is the brand name of Kerala co-operative milk marketing federation
Ltd(KCMMF) ,the apex cooperative of three Regional Cooperative milk producers union
Viz Thiruvananthapuram Regional union , Ernakulam Regional union and Malabar Regional
union . KCMMF was set up in 1980 to implement the popular operation flood project –II in
Kerala state. The objective of milma is to provide an assured market for the milk produced by
the rural milk producers and the same time provide wholesome, clean and nutritious milk and
milk products to the consumers fully eliminating the middlemen in the Dairy sector, thereby
providing maximum return to its farmers.
For the rural community of the country comprising of 6 lakh villages and lakhs of
Dairy farmers, milk has become a commodity that has helped them to build a new life and
provide stable income. Milma believes in developing rural village community which only
helps to develop a strong nation. In its endeavour to meet the ever increasing consumer
demand, milma strives to provide quality products at competitive prices and at the same time
ensures better remuneration to the Dairy farmers of the state.
Thiruvananthapuram Regional Milk Producers Union (TRCMPU) covers the southern most
districts of the state viz Thiruvananthapuram, kollam , alapuzha and pathanmthitta. TRCMPU
operates three modern dairies at
• Thiruvanathapuram
• Kollam
• Pathanamthitta
TRCMPU also undertakes milk procurement and distribution at Alapuzha district.
Over the years, MILMA has developed a long-term health perspective about the
people of the state, who suffer from life style diseases including diabetes and obesity, albeit
economic prosperity. So, MILMA has attuned its products to ensure balanced nutrition as
well as reduced cost of healthcare and also launched new beverages other than milk products.
Founded on the basis of the great democratic principle „of the People, by the People and for

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the People‟, the dominant concern of MILMA is to render true service to society while
ensuring that it does not incur losses.
The name Milma represents:
 2678 primary milk Co-operative societies.
 8.31 lakhs farmer members.
 Three regional Co-operative milk producers Union
 13 dairies capable of handling 12 lakh litres of milk per day.
 Fourteen milk chilling centres.
 Two cattle feed plants with cumulative capacity of 500MT per day.
 One milk powder plant 10 MT per day capacity.
 A well-established training centre.
 5200 retail outlet.
 Over 32,000 people working either directly or indirectly for the functioning of Milma.
 Apart from these Milma serve millions of consumers‟ day in and day out.

3.2 VISION
To constantly strive to provide valued consumers with the highest quality milk, milk
products and other products with the best standards of service by our passionate and focussed
work forces using state of the art technology ensuring sustained growth and simultaneously
ensuring dairy farmer‟s delight by better realisation of milk price and offering needed service
at his/her doorstep.

3.3 MISSION
„‟Farmers Prosperity through Customer Satisfaction‟‟ is the mission of the company.

3.4 OBJECTIVES
 Channelize surplus milk from the rural areas to urban deficit areas to maximize the
returns to the producer‟s and provide quality milk and milk products to the
consumers.
 Carryout activities for promoting Production, Procurement, Processing and Marketing
of milk and milk products for economic development of the farming community.
 Build a viable dairy industry in the State.
 Provide constant market and stable price to the dairy farmers.

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3.5 NATURE OF BUSINESS
The Milma is for the welfare of the farmers. The primary share holders of the organization
are farmers. Since it is a Government organization Milma mainly focuses on the benefit of
the farmers and the customer satisfaction. The motto of Co-operation is "of the people, by the
people and for the people". Milma is the foundation of the "three tier system" followed by the
organization. At the village level Milma have the Village Milk Co-operative Societies which
have the local milk producers as its members. The co-operate Social Responsibility (CSR) of
the company is that it provide 2- 3 lakh loan to workers and also provide emergency loans.
There are many welfare activities for the workers like scholarship for their children, provide
subsidies, transportation and compensations. These Village Co-operatives unite at the
Regional level and form Regional Co-operative Milk Producers' Unions. These Unions are
federated at the State level to form State Federation namely Kerala Co-operative Milk
Marketing Federation (KCMMF).

3.6 MAIN FEATURES OF MILMA
 Promote sale of milk and products outside the State and explore export market.
 Federation takes lead role in Brand Management, Brand Promotion, Market Research
and Market Intelligence.
 2678 Primary milk co-operative societies now functioning.
 8.31 lakhs farmer members.
 Three Regional Co-operative Milk Producer‟s Union.
 Three dairies capable of handling 12 lakhs litres milk per day.
 Ten Milk Chilling Centres
 Two Cattle Feed Plants with cumulative capacity of 600MT per day
 One Milk Powder Plant of 10MT per day capacity
 5,200 retail outlets
 Over 32,000 people working either directly or indirectly for the functioning of Milma.

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3.7 ASSOCIATES OF MILMA

1. NATIONAL DAIRY DEVELOPMENT BOARD (NDDB)
NDDB, under Dr. Varghese Kurien's guidance set up KCMMF in 1980. Ever since then,
there has been a very close co-operation between NDDB and the Federation. NDDB are the
originators of the Operation Flood Programme and have been our funding agent for the
Operation Flood Projects in Kerala.
2. AMUL
The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a
vast network of dairy co-operatives in Kerala. Among the co-operatives in Gujarat, the
Kerala District Co-operative Milk Producers' Unions (Amul) is the first in this sector. Our
Co-operatives are called "Anand Pattern Co-operative Societies" following the illustrious
lineage of "Amul".
3. GOVERNMENT OF KERALA
The Phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved,
without the foundation of animal husbandry activities, led by the Animal Husbandry
Department, Dairy Development Department and Kerala Livestock Development Board, of
the Government of Kerala.

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Karunya school of management, Coimbatore
3.8 Structure of KCMMF (Fig 3.1)





















Structure of KCMMF

TRCMPU ERCMPU MRCMPU
TRIVANDRUM
KOLLAM
PATHANAMTHITTA
ALAPPUZHA
ERANAKULAM
KOTTAYAM
THRISSUR
IDUKKI
PALAKKAD
CALIUT
KANNUR
WAYANAD
SOCIETIES
FARMERS

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3.9 TRCMPU
TRCMPU was registered in 1985, as a regional milk union with 4 southern districts of
Kerala namely Thiruvananthapuram, Kollam, Pathanamthitta and Alappuzha as its area of
operation. TRCMPU was formed by dividing the area of operation of Kerala Milk Marketing
Federation, formed for implementing Operation Flood phase II (OF II) in 1980, in to two
namely ERCMPU with 4 northern districts under OF II area and TRCMPU.
The first dairy plant under OF II project in TRCMPU area was commissioned at
Kollam with a capacity of 60,000 LPD in 1986. Subsequently chilling plants with capacity of
10,000 LPD each were set up at Mannar and Pathanamthitta. New dairy plant with a capacity
of 60,000 LPD was commissioned in 1989, and new Dairy plant with a capacity of 100,000
LPD was commissioned at Thiruvananthapuram in 1992. The dairy plant at Alappuzha was
transferred to KCMMF in 1992 in order to facilitate operation of powder plant set up at
Alappuzha for handling surplus milk in the state.
3.10 UNITS OF TRCMPU
1. THIRUVANANTHAPURAM DAIRY
Thiruvananthapuram dairy is located on the way to Kovalam 4 Km from the city. The
dairy with a capacity to handle 1 lakh LPD was commissioned in 1992. The Dairy is selling
milk in Thiruvananthapuram District except ChirayinkeezhThaluk.Thiruvananthapuram
Dairy started to collect the entire milk through Bulk Milk Coolers since November 2009.The
capacity of the Dairy has been expanded to 2 Lakh litres per day by 2001 now it is proposed
to expand the capacity to 3 Lakh litres per day. In addition a separate block for manufacture
of Products is proposed to be constructed. Thiruvananthapuram is the first "ISO 2001"
certified Dairy in the State and all steps have been initiated to get HACCP for
Thiruvananthapuram Dairy.
 No. of Employees - 287
 No. of societies pouring - 340
 No of agents selling milk - 2100
 Average procurement - 100,000 LPD
 Average milk sale - 2,10,000 LPD

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2. KOLLAM DAIRY
The Dairy was commissioned in 1986 with a capacity to handle 60,000 litres per day
and subsequently expanded to handle 1 lakh litres per day. Quantity processed and supplied
to Pathanamthitta unit-45000 LPD. At present 18,000 litres milk is collected through Bulk
Milk Coolers and the remaining quantity in Cans.
 No of employees - 161
 No of Societies - 336
 No. of agencies - 1080
 Average milk collection - 50,000 LPD
 Average milk sale - 120,000 LPD

3. ALAPPUZHA DAIRY
In Alappuzha district, dairy constructed under OF II with a capacity of 60,000 LPD
was later expanded to 1 lakh LPD. Milk procurement and marketing activities are carried out
by union. There is also a chilling plant with 30,000 litres capacity in district.
4. PATHANAMTHITTA DAIRY
The PathanamthittaMilma dairy is constructed in an area of 10 acres of land at
Mammodu near Adoor, Pathanamthitta district at a total cost 14 crores. The new Milma Dairy
having a capacity of 60,000 LPD was commissioned by the end of 2009. Earlier there was a
30,000 litres chilling plant at Kumpazha in Pathanamthitta which was started in 2001.That
facility was decommissioned when the new dairy plant was commissioned. Now the entire
milk in the district is being collected through Bulk Milk Coolers.
There are basically 3 types of milk produced by Milma they are double toned milk
(less fat), toned milk (medium fat) and jersey milk (maximum fat). In Pathanamthitta dairy
only toned and double toned are produced and other products like ghee, curd, sambharam
,lassi, paneer and peda are produced here. Other Milma products like ice-cream, sip up,
butter, mango drink, milk powder etc are marketing here through the „Milma Shoppe‟.

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3.11 DETAILS ABOUT PATHANAMTHITTA DAIRY
 Name of the company: Thiruvananthapuram Regional Co-operative Milk Producer‟s
Union Ltd, Pathanamthitta.
 Place: Mammodu, Pathanamthitta (district), Kerala
 Date of registration: 31-05-1985
 Registration No.: T-177 (D) APCOS
 Nature of organisation: Co-operative
 Industry category: Manufacturing
 Main products: Milk, milma plus, Lassi, Ghee, Peda, Curd, Sambaram, cup curd,
paneer and other milk products
 Power used: Electricity from KSEB
 No. of employee: 115
 Permanent: 69
 Temporary: 46
 TIN No.: 32030474207
 CST no.: 32030474207 C
 Primary Milk Co-operative society = 157

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CHAPTER 4
PRODUCT PROFILE

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4. PRODUCT PROFILE
4.1 PRODUCT AVAILABLE IN MARKET
1. MILMA PASTEURIZED MILK
Toned Milk and Double toned Milk are the two types of pasteurized milk from
Milma.
 Homoginized Toned Milk
Toned milk is considered as common milk, which contains 3% Fat and 8.5%
SNF (Solid Not Fat). Since the milk is homogenised, whitening capacity is
more and less amount of milk will be sufficient for whitening tea/coffee.
This milk mainly focuses on domestic consumers and is available in 500 ml
in blue coloured packet. Price of the toned milk is Rs21/-. Milma gives 4%
of commission for the sale of the each packet of the milk to the dealers.



 Double Toned Milk
Double toned milk contains high fat content of about 1.5% Fat and 9.0%
SNF. The price of the double toned milk is Rs 19/-. Double toned milk is
also homogenised. Hence fat will not settle at the top. Both the above milk
can be stored for 2 days under cool condition below 7 degree Celsius.

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2. SAMBHARAM
Sambharam (Butter milk) which is having 4.5% total solids is a favourite beverage
in Kerala. Milma Sambharam is the only product of its kind in the market and it is
very popular throughout the State. It comes in 200 ml cup. It is a seasonal product,
mainly for summer season. . The price of 200ml MilmaSambharam is Rs.10/-

3. CURD
It is fermented product prepared from pasteurized skim milk using curd culture from
National Dairy Institute (NDRI).Milma curd contains 0.5% fat and 9.0% SNF. It is
delicious, tasty, and free of cholesterol which makes it ideal for curries. Milma curd
is available in 400ml cup with a market price of Rs. 45/-, 200 ml cup with market
price of 24 /-and 80gm cup at a market price of 10/- .
Double tonned curd of 500ml sachet is available at Rs. 27/-




4. GHEE
Milma Ghee Contains 99.7 % milk fat and is manufactured by melting fresh cream.
Natural aroma and flavour of ghee is retained since it is produced directly from fresh
cream instead of going in for melting stored butter.

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No artificial colours or flavours are added in Milma ghee. Milma Ghee is available
in 50 ml, 100 ml, 200 ml, 500 ml, 1 litre, 15 litre and their market price are 31/-, 57/-
, 110/-, 260/-, 500/-, 8040/-. Ghee is the only exporting products of Milma.

5. PEDA
An indigenous milk product manufactured by evaporating water content from
wholesome cow‟s milk and sweetened with cane sugar. No colour or preservatives
are added. It is nutritious and delicious sweet bite for children and it is available in
20 gm and in 10 pieces box which cost Rs. 60/-.

Also jack fruit peda is also available at Rs. 100/-

6. PANEER
Paneer also called chenna is a milk product made by coagulating boiled hot whole
milk with citric or lactic acid and subsequent drainage of whey.

It is fresh source milk protein and has good flavour and smooth texture. It is used in
preparation of various dishes.
paneer is available in 100gm at Rs. 40/-
200 gm at Rs. 75/-
1 kg at Rs. 310/-

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Karunya school of management, Coimbatore
7. STERILIZED TONNED MILK (MILMA PLUS)
It is available in various flavours. The price of these types of sterilized tonned milk
is Rs.22/-. This product is one of the new product that was producing in milma dairy
plant .It is available in 200 ml single service glass bottle.


8. LASSI
Lassi is also available in various flavours like pineapple,mango.It is available in
bottles at Rs.25/-


OTHER PRODUCTS FROM MILMA

1. MILMA SIP UP
Hygienically prepared product preferred by school children. It is made from
pasteurized milk added with sugar and available in different flavours.

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2. ICECREAM
Ice cream is made from dairy fresh cream using the state of the art of technology
and comes in a variety of flavours like vanilla, pineapple , strawberry, mango etc to
name a few .

3. MILMA INSTANT DAIRY WHITNER
Milma dairy whitener is widely used to prepare tea/ coffee, delicious curd and is
available in 200gm and 500gm packing.

4. PALADA MIX
Readymade payasam mix ideal for making delicious payasam. Milma palada mix is
available in 200gm packing.


5. MANGO DRINK
Manufactured using UHT technology, milma mango is available in 200 ml tetra
pack as well as 250 ml, 500ml, 1ltr per bottles.



6. PACKAGED DRINKING WATER
Targeting the communities, milma drinking water is available in 1ltr packing.

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Karunya school of management, Coimbatore
7. MILMA BUTTER
With its natural golden colour, milma butter is available in 100g, 200g and 500g in
salted and unsalted packs.

8. MILMA CHOCOLATES
Available in different variants as per the consumer preference .milky beasts is the
milk based chocolate, while choco beats is chocolate bar. Milma krispy is
chocomass coted with wafer biscuit, and the popular milma éclairs.


9. GHEE
Made from cow‟s milk, the golden coloured milma ghee is AGMARK certified and
is famous for its aroma and taste. Available in consumer packs of 50 ml, 100 ml,
200 ml PET jars, 2 ltr and 5 ltr tins and 15 kg tins.

10. ICE CANDY
Water based candy lolly hygienically made using pasteurized water and safe to
consume.

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Karunya school of management, Coimbatore
11. MILMA FLAVOURED BAR
Available in mango, orange, pineapple, strawberry, green apple flavours. Made from
fruit pulp and permitted flavours.

12. YOGHURT
A fermented milk product .plain as well as flavoured milma yoghurt is available in
125 g packing. Rich source of lactobacillus bacteria.

13. BIRIYANI GHEE
Made from cream using a different process due to which taste and aroma increases,
No artificial flavour added.

14. GULAB JAMUN
Gulab jamun is a desiccated milk product manufactured by mixing khoa, maida and
skimmed milk powder, converting the mix into balls and then by frying the balls in
ghee. The fried balls when soaked in sugar syrup turn into delicious gulab jamun,
which is then packed in sterilized tins.

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Karunya school of management, Coimbatore








CHAPTER 5
ORGANISATION CHART &
FUNCTIONAL DEPARTMENTS

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Karunya school of management, Coimbatore
ORGANISATION CHART (Fig 5.1)






















DAIRY UNIT MANAGER
HR DEPT
FINANCE
DEPT
PRODUCT
ION DEPT
QUALITY
DEPT
MARKET
ING DEPT
P & I
DEPT
M&E
DEPT
Personal
officer
Accounts
Officer
Asst.
Manager
Quality
Control
Officer

Asst.
Manager
Asst.
Manager
Asst.
Manager
Junior
Superinten
dent

Assistant
Accounts
Officer
Senior
Supervisor
Diary
Chemist

Marketing
Officer
MPO
Deputy
Engineer
Senior
Assistant
Management
Apprentice

Technical
Officer
Lab
Technicia
ns

Assistant
Marketing
Officer

Assistant
MPO
Stenograp
her
Operators
&
Attenders
Lab
Assistant

Supervi
sor
Technical
Superinten
dent
Typist
Marketing
Organiser
Field
Officers
Electricians Operator Mechanics

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Karunya school of management, Coimbatore
5. DEPARTMENTS AND FUNCT IONAL AREA ANALYSIS
Chester Bernard defined formal organization as “a system of consciously coordinated
activities or forces of two or more persons”. A formal organization is deliberately designed to
achieve some objectives. It refers to the structure of well-defined jobs, each bearing a definite
measure of authority, responsibility and accountability. The structure is consciously designed
to enable the organizational members to work together for accomplishing common
objectives. It tells the employee to do certain things in a specified manner, to obey orders
from designated individuals and to cooperate with others. Co-ordination also proceeds per a
prescribed pattern in the formal organization structure.
The formal organization is built around four key pillars, namely:
 Division of labour
 Structure
 Span of control
 Scalar and functional processes
Division of labor and specialization is the basic principle of formal organization. The scalar
and functional processes imply the growth of the organization both vertically and
horizontally. The structure of the organization refers to the overall arrangement in the
organization which ensures proper balance between different parts of the organization and
secures the execution of all operations and the achievement of organization objectives.
The span of control refers to the number of subordinates directly reporting and
accountable to one superior. The Organizational Structure of any firm will include the Top
Level Management, who takes the main administrative decisions for the business concern;
the Middle Level Management which is concerned with the day to day management of the
concern; and the Lower Level Management which is concerned with the normal day to day
activities of the concern. Milma follows such a structure for the department and function
areas.

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Karunya school of management, Coimbatore
5.1 HUMAN RESOURCES DEPARTMENT
In Pathanamthitta diary, the human resource department is headed by the Personnel officer.
The diary has a total strength of 115 workers out of which 69 are permanent and 46 are
temporary. The temporary employees are appointed for a limited period. While entering the
job organization provide on the job training facility to their employees. This is done to reduce
the expense.


ORGANISATIONAL STRUCTURE OF HUMAN RESOURCE DEVELOPMENT (fig
5.2)










PERSONNAL
OFFICER
SENIOR ASSISTANT
JUNIOR ASSISTANT
STENOGRAPHER

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Karunya school of management, Coimbatore
Functions of HR Department
Recruitment & Placement
Human resource department is concerned with the process such as recruitment, selection and
placement to the right type of employees to the right job. Permanent employees are appointed
through test and interview. Temporary workers are appointed through employment exchange
for a period ranging from 6 to 12 months. When vacancies fall in the organization Milma
registers the requirement of employees to the concerned post in the employment exchange.
This registration is either through directly or sending letters to the offices. There should be a
personal interview which is conducted by a panel of judges consisting of top officials like
Manager, HR Manager and the Head of the Departments
Selection Process
Temporary staffs are recruited by the concerned units and permanent staffs are recruited by
the head office, in the following process:
1. Inviting application: KCMMF releases the advertisement in leading newspapers
showing the vacancy and quality required by the applicant.
2. Screening the application: The next step is the screening of the application to
reduce the number of applicants and also to find out more suitable candidates.
3. Test: Written test are conducted by TRCMPU to select persons for various jobs.
Test are conducted to know the level of ability, knowledge, interest, aptitude etc. of
a particular candidate
4. Interview: Next step is the interview conducted by the top officials of Milma.
Interview is also conducted by a group of various managers.
5. Final selection: If a candidate overcomes all the procedures given above, he would
be selected. An appointment letter is given to him mentioning the terms of
appointment, pay scale etc. The selected candidate undergoes a probationary period
of 6 months to one year.
Induction and Orientation
Initially there should be an induction period for about three months during which on on-the
job training should be given to the permanent employees. During the training period they will

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Karunya school of management, Coimbatore
be taken to all departments so as to understand the working of all departments and understand
how they all are related to one another. At last they will be placed in their own assigned post.
Training and Development
According to T.N. Chhabra, “The purpose of training is to bring about improvement in the
performance of work. It includes the learning of such techniques as are required for the better
performance of definite tasks”.
The workers are given job training regularly. In case of new technological improvement
senior operators are sending to Anand, Gujarat where NDDB makes arrangements for
training. The managers also have to undergo training programme at Trichur or at any place
decided by the federation from time to time. The managing board of federation frames the
policy regarding training of employees and the personnel department of the plant complies
with it. The head office schedules officers for training. The training fee payment is met by the
KCMMF for workers education. There are central Govt. offices in every district. NIPM
(National Institute of Personnel Management) provides spot training and centre training
through integrated training techniques.
Promotion
There is two level of promotion in this organization. Promotion is given on the basis of
seniority for staff. For standing officers departmental promotions are on the basis of seniority
and in connection with TRCMPU conduct personnel interview.
Performance Appraisal
This organization has the practice of appraising the performance every year for deciding the
promotion. The concerned departmental heads will give the report of employees to the
manager and according to that performance is appraised. Performance appraisal is done by
the basis of following factors;
 Knowledge of work.
 Attitude towards the work
 Decision making ability.
 Initiative
 Team work and interpersonal relationship with other employees

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Karunya school of management, Coimbatore
Motivation
In this organization employees are motivated monetarily as well as non-monetarily.
The total earnings of an employee include basic pay, dearness allowance, HRA and other
allowances.
Working condition
The retirement age of the employee is kept as 58 years in this organization. The working
hours of the employees in the administrative section are from 10am-5pm and there are two
shifts in production department that is from 8am-4pm and 4pm-12am. In the production lab
and production department, 6am-2pm and 2pm-10am in the filling section. Canteen functions
inside the dairy from 5am-8pm and it is function on a contract basis mostly for about a year.
Method of remuneration the employee and incentive plan
The diary follows time basis wage payment system and also offers various financial and non
–financial incentives like:
 Monthly salary, promotions and bonus during festival season like Onam, Christmas
etc.
 Scholarships to the children of the employees from 10th to post graduation.
 There is a yearly salary increment on the basis of availing scale of pay for all the
permanent staff.
 The employees are provided with uniforms, working shoes, washing soaps, ear plugs
etc. Free of cost in the production department.
 Employee recovery is also safeguarded by paying the loans taken by them and
monthly deducting it from their salary.
 Statutory compliances like EPF, ESI, Gratuity, etc. are covered with all employees.
 Milk allowance applicable for permanent workers ₹6.48 per day.
 Conveyance allowance ₹10 per day.
 Night shift employees are given extra allowances.
 Housing loan @ 1% subsidy for interest rates.
 Employees completing 25years of service ₹ 4000 cheque.
 Motor Conveyance Advance for purchasing Motor Car/Two Wheeler to permanent
employees as loan.

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Karunya school of management, Coimbatore
Trade union
There are notable employee strikes till date but still there are some union operating to ensure
the welfare of the employees.
 AITUC
 All Kerala Milk Employee Federation(INTUC)
 Milk Employees Union Affiliated to CITU.
Industrial relation
The relation between the employees and the management are cordial in nature there are no
strikes since the organization has started. In this dairy grievances are settling through
collective bargaining. The workers are ruled by the standing orders and officers come under
the regulation of Staff Regulation Act followed by TRCMPU Ltd.
Disciplinary Proceedings
The HRD department is responsible for maintaining discipline in the organization. At
Pathanamthitta dairy, the rules and regulations for office staff and workers are different. Staff
regulations are concerned with the office and standing orders are concerned with workers. If
there is way in disciplinary action arises from a worker action will be taken as per standing
order. The procedure is as follows.
 Written explanation is asked from the concerned workers.
 Domestic enquiry will be conducted either by an Internal or External Officer
Role of Manager
 Communication with the management and employees
 Taking proactive steps to avoid unrest in the firm
Significant Factors for Success
 Co-operation of staff
 Maintenance of service book

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Karunya school of management, Coimbatore
5.2 FINANCE AND ACCOUNTS DEPARTMENT
Finance is considered as the life blood of any business organization. In the Accounts and
Finance department which is headed by Accounts Officer and there are 4 employees in total.
The main duty of the finance and accounts department is the procurement of funds and
budgeting, allocation and utilization of funds.


ORGANISATIONAL STRUCTURE OF FINANCE AND ACCOUNTS
DEPARTMENT (Fig 5.3)











FUNCTIONS
 Providing financial assistance as per the departmental requirements.
 Keeping the monetary transactions in the book of accounts except the marketing
department
 Finance department also deals with the systems department
ACCOUNTS OFFICER
ASSISTANT
ACCOUNTS OFFICER
MANAGEME NT
APPRENTICE

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Karunya school of management, Coimbatore
 Systems department operates with software which is made by KCMMF, MILMA
Integrated Information System.
ACCOUNTING SYSTEMS
Double entry system of accounting includes both debit and credit aspects. All transactions are
computerized in this department and are made up-to-date. Trial balance and profit and loss
accounts are prepared half yearly. A uniform system is maintained as per the rules and
accounting systems set by NDDB.
SOURCES OF FINANCE
LONG TERM: The source of long term finance is only term loans. CPD gets its financial
assistance from National Dairy Development Board (NDDB) through KCMMF. There is an
agreement between the federation and NDDB.
As per the agreement between them 70 % of the loan amount should be repayable and the
remaining 30 % subsidy.
SHORT TERM: the source of short term fund is procured from the SBI at the prevailing
interest rates. It is mainly in terms of overdraft.
AUDITING PROCESS
The dairy has statutory auditing which is done by the registrar of the co-operative society. For
this purpose a representative is appointed in the dairy as their Concurrent Auditor. Budget is
an estimation of the revenue and expenses over a specified future period of time. Budget is
prepared every year by considering the procurement of plant and machinery, sales, increment
in salaries, quality control and engineering works, number of agencies and societies
registered depreciation and other types of expenses. All payment and allocations of funds to
other departments are strictly on budget basis. Each department if needed to be renewed
should check the amount allocated to each of these departments. The prepared budget is
submitted to the head office and gets approved. Budgets are prepared considering the annual
turnover.

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Karunya school of management, Coimbatore
TAX PAYMENTS
Every year a certain amount is paid as tax. Tax planning is done to avoid paying a
huge amount. Apart from this a certain amount of profit is paid to the bank as price difference
to the farmers. Out of the total revenue, about 90% is recovered from sale of milk, 10% from
other milk products.
Maintenance of Books and Records
The following books of accounts are maintained in the department
 Cash Book
 Bank Book
 General Ledger
 Journals
 Direct payment Register
 Bill Register
 Advance Register
Profit and loss account is prepared every month while balance sheet and budget is prepared
yearly. Every year auditing takes place. External auditing i.e.; statutory auditing is take place
in the dairy. Register of co-operatives societies come and audit every year. This department is
computerized and hence man power is limited. Cash receipt is prepared through
computerized system that is, by using MIS (Management Information System).
ROLE OF MANAGER
 Proper management of accounts and finance
 Preparation of monthly reports
SIGNIFICANT FACTORS FOR SUCCESS
 Efficient co-operation and support from another department
 Support from top manager
 Proper maintenance of accounts and reports
 Timely follow up

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Karunya school of management, Coimbatore
5.3 MARKETING DEPARTMENT
Marketing department is headed by Assistant Manager. Marketing department has a key role
to play for the survival and development of any organization. Marketing is the delivery of
customer satisfaction at a profit. The main goal of marketing is to attract new delivering
satisfaction.
Structure of Marketing Department (Fig 5.4)

















ASSISTANT MANAGER
MARKETING OFFICER
ASSISTANT
MARKETING OFFICER
FIELD STAFF OFFICE STAFF
MANAGEMENT
TRAINEE
MARKETING
PROMOTER
SALES MAN CASHIER DISPATCH
ASSISTANT
MARKETING ORGANISER

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Karunya school of management, Coimbatore
FUNCTIONS
 Sales of milk and other milk products
 Distribution of the products
 Collecting the payments from the agents
 Doing promotional activities
ROLES AND RESPONSIBILITIES
(1) Marketing Manager
 Coordination of all marketing activities
 Setting marketing target and achievement of the same.
(2) Marketing Officer
 Marketing activities of milk
 Marketing activities of all Milma products including products which are not
produced in Pathanamthitta unit.
(3) Marketing organizers
 Dealing with the customer complaints
 Agency promotion
 Finding potential markets and canvassing.
(4) Marketing assistant
 Cash collection of agents.
 Milk dispatch activities.
(5) Junior Assistant
 Keeping marketing accounts.
 Issuing invoices
(6) Salesmen
 Selling process is done in the stall, which located outside Milma unit.
 Maintaining inventories in the stores
The dairy has Milk and Milk Product Order (MMPO) registration. The processing of the
diary is 60000 litres of milk per day. 35000 litres of double toned milk (DTM) and 25000
litres of Jersey milk. The main products of this dairy are milk and other product like ghee,
curd, sambharam and peda. These products are not sold to individual directly. There is a stall
“MILMA SHOPPE” which is near to dairy for selling the product. From this individual

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Karunya school of management, Coimbatore
buyers can buy the product. All the MILMA products are available in this MILMA Shoppe.
Product such as milk, ghee, curd, sambharam, peda, butter, ice cream, chocolate, sip-up,
MILMA –plus, refresh, paneer, mango drink, drinking water and milk powder etc. Milk,
ghee, sambharam, peda, and curd are come from Pathanamthitta dairy for sales. But other
products are come from other units of MILMA for the sales. But other products are come
from other units of MILMA for the sales. MILMA Shoppe is working at 6am-9pm and it is
opening all the day including Sunday. The total sales revenue around 20000 rupees per day in
MILMA Shoppe and in seasonal or festival time it will be increased.
Distribution
Pathanamthitta dairy supplies milk and milk products to the whole place of Pathanamthitta
district, chengannur in Alappuzha districts and pathanapuram in Kollam district. There are
about 1250 registered agencies in the dairy of which 1000 agencies are functioning.
Selection of Agents
These agents have to approach the plant where they need to fill and give a form which cost
₹25 and the form consists of the details to be filled regarding name, address, phone number,
mail id, location of the shop, type of the shop etc. are collected. The other side of the form is
the verification part and an officer of MILMA us sent to the agents place for this purpose.
The officer is inspected to check the shop whether the sales will get divided or not etc. If the
officer gets any wrong information then the sanction is not given to the agent.
The verified details also ensure the following:
 Whether agency can promote marketing
 Whether additional sales can made possible.
 Whether any additional transportation cost will be incurred
 Whether it has cold storage and refrigeration facilities.
Then remark from the marketing manager is given alone with this part and sanctioned by the
agent. These agents are then confirmed by giving an id and also two photographs alone with
the caution deposit of ₹2000. These agents will have to give the next day‟s order for milk and
other products required alone with its payment. So the sales are done not on the basis of
credit but on the basis of payment. The shopkeeper themselves are the agents. These agents

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Karunya school of management, Coimbatore
are given one year validity ID card along with a number also assigned the each and every
agent in the form of AG-304
Distribution of the Product
When milk is distributed via agents the fact to be kept in mind is that there are no credit
facilities. The agents should make payment in advance to the milk vendors from the dairy.
There are vans for supplying milk and other product to about 11 different routes in MILMA
there is a separate code assigned.
Cash sheet is made at first which has got the route code as title i.e. PUNALUR-am-
21|PUNALUR-PM-38. Cash sheet show the next day order and also advance amount
remitted and based on this the dispatch sheet is prepared from the computer after feeding the
cash sheet data. The morning supply time is 4 am to 8.30 pm onwards to deliver it for the
next day. Some important book and registers maintained in marketing department are credit
supply register of institution; supply details and complain register etc.
Product Mix
Stock transfer rate is the rate at which Thiruvananthapuram or some other dairy gives after
making a profit/margin. Wholesale rate is the rate at which the dairy supplies milk to the
wholesalers. Retail rate is the rate at which the wholesalers give it to the retails. MRP is the
rate at which the retailers sale to the customer. In between the wholesaler rate and retail rate
come the institutional rate which the milk is supply co and Triveni stores. The only sale that
happens in MILMA is directly through wholesalers or through stalls.
Dispatch Room
In dispatch room both jersey milk and double toned milk are kept separately in cold
condition. During the evening time only jersey is supplied and the morning double toned
milk, sambharam and curd should be delivered. For this separate trays are present which can
about 26 packets of milk in one tray similarly 26 packets of curd also can be contained in the
same. There are total 11 vans for supplying MILMA products to different parts. The capacity
of vans varies some are of 2 ton, 3 ton or 5 ton
The average sales daily of double toned milk during the morning time are 78207 packets and
during the evening time are 31271 packets. The average sales of curd daily are about 788

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Karunya school of management, Coimbatore
packets in the morning. The average sales of jersey milk during the morning about 3127
packets and in the evening it is 788 packets.
Marketing Mix
 Price
Price of the product is decided on the basis of market share. Sales promotion activities and
price flexibility are also considered while deciding price. Profit motivation is also considered
while deciding price. In addition competitor‟s price, purchase price, production cost is also
important. Milk price is estimated on the basis of distribution and also social obligation to the
society and discussion are also held with members.
 Product
The new product to be launched on the basis of survey on consumers for the acceptance of
each and every product, consumer awareness is needed for the product and response is
awaited from the customer.
 Place
Identify the target market and then establishing the product in the minds of the people, hence
the right kind of people needed to targeted like children. The products like ice-cream, sip up
and chocolate are mainly targeted to children.
 Promotion
There is less promotional activities from the firm. Usage of posters, calendars, stalls,
billboards etc. are certain tools used in the promotion activities. Advertisements are used only
when the offers are provided.
 Marketing strategies
One of the main upcoming strategies to be implemented MILMA is incentive based
distribution in which, the contractors who deliver the product and create extra sales of about
10 to 15 percent. So that both MILMA and contractors get mutually benefited. Another one
such as strategy of MILMA is to introduce separate agencies for other products of MILMA
like milk so that the sales may go up and more customer awareness is created. MILMA is
also used another strategy for marketing products. They introduce MILMA Shoppe for the

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Karunya school of management, Coimbatore
distribution of product. All the MILMA products are available here. They also used MILMA
stall in different areas for selling the product.
 Upcoming products
Mainly upcoming products of MILMA to be manufactured in the Pathanamthitta dairy are,
sip up, chocolate, kulfi, ice- cream and palada.
 Milma Outlet
Retail outlet of milk and milk product is functioning near the dairy under it‟s of the dairy
provide all the MILMA product cost effective prices. MILMA booths are functioning in most
of the railway stations. Bus stations and other public places in Kerala. A 24-hours retail outlet
of milk and other product open here by the Malabar Regional co-operative Milk Producers
Union (MRCMPU) under (KCMMF). Styled MILMA Shoppe is the outlet which sells all
MILMA products in public places.

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Karunya school of management, Coimbatore
5.4 PRODUCTION DEPARTMENT
Production is a process of transforming inputs (raw materials) into outputs (finished goods).
The main activity of production department is the processing of milk and other by products.
The production department is headed by the Assistant Manager and is assisted by technical
officers, technical superintendents, operators and attenders. There are mainly two types of
milk produced namely, double toned milk and homogenized toned milk.
Structure of production department (Fig 5.5)











There are mainly two types of milk produced, double toned milk and homogenized toned
milk. The various other products manufactured are sambharam, ghee, chocolate, ice cream,
paneer, butter etc.
PROCESSING OF MILK
 Reception
 Chilling
 Processing
ASSISTANT MANAGER
TECHNICAL OFFICER
TECHNICAL
SUPERINDENTENT
OPERATORS AND
ATTENDERS

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Karunya school of management, Coimbatore
 Packing
 Storing
Functions of Production Department (Fig 5.6)











RECEPTION
At first, raw milk from BMCC‟s which is bought from the regional societies with the help of
tankers is collected and then through these tankers it is bought to the dairy for processing. At
first a sample of milk is taken to the laboratory and then it is tested for acidity, fat and SNF
(solid not fat). It is then subjected to MBR test (methylene blue reduction test),
bacteriological tests etc. Methylene blue is dropped into milk to test its quality and then the
time it says blue is calculated. If there are more than 500 litres from one society, then two
samples are taken for testing. Then the milk from the tanker is taken and then the weight if
milk is recorded using logging machines to test the fat content. Then the milk is pumped into
a large tank called SILO which has a capacity of holding 50,000 litres. There is a daily
procurement of about 34,000 litres in the dairy plant.

PRODUCTION
DEPARTMENT
RECEPTION

CHILLING PROCESSING

PACKING

STORING

PASTEURISATION

STANDARDIZATION

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Karunya school of management, Coimbatore
There are basically two processes involved in production plant:
 Pasteurization
 Standardization
In pasteurization process, there are again three different stages.
 Heating section
 Holding section
 Chilling section
Pasteurization means the partial sterilization of a substance, especially milk or other
beverages to destroy the microorganisms. It also refers to heating of every particle of milk to
71.5 degree Celsius and holding at such temperature continuously for 15 seconds and
immediately cooling to 5 degree Celsius or below. The milk fat is first transferred to a
container which has got steel plates. The container is divided into two sections, i.e.
pasteurization milk tank 1 and pasteurization milk tank 2 namely a heating section and a
cooling section. At first milk is heated at about 76 degree Celsius for about 15 minutes where
it is held as much as such and then it is transferred to the chilling section where milk is
chilled at a temperature below 4 degree Celsius. This is done to destroy all the microbes and
other harmful bacteria present in the milk. The pasteurization unit can pasteurize more than
1000 litres of milk in four hours. After this, other activities like filtration takes place, in
which small particles like hair dung etc. are filtered out completely. Processors called
clarifiers are used to separate the invisible particles to make milk more clean and pure.
In Standardization process, the quality of milk is maintained according to the PFA
(Prevention of Food Adulterate). For this, samples of milk are taken and tested to check the
fat content and SNF contents. It should basically have fat of about 4.1% and SNF content of
about 8.3% which will total up to 12.4% quality which is the most demanded rate. If not met
to the expected rate, then milk whitener is added to it. If the fat content is found more than
this then the cream is separated out by using a separator into fat milk (cream) and fatless milk
(skimmed milk) and are stored it two different tanks. There are two different types of milk
processed, namely, double toned milk and jersey milk. Double toned milk should have a fat
content of about 1.5% and SNF of about 9.0%. Jersey milk should have a fat content of about
3.5% and SNF of about 8.5%. Double toned milk has got moderate amount of fat content
whereas jersey milk has got more fat content.

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PACKAGING AND FILLING SECTION
The stored milk is then passed out for packing and then separately packed into yellow and
blue coloured packets. Yellow coloured packets contain double toned milk and blue coloured
packets contain jersey milk. The packaging is done by using thin polythene bags which have
thickness of few microns only filling machine will itself take the plastic covers and by the use
of rollers the sheets are rolled in a criss cross shape and milk is poured into it which is
automatically sealed and packaged.
CRATE WASHER
The trays used for collecting and moving packets of milk is washed and subjected at high
temperatures of about 72 degree Celsius. The trays are moved and washed by using
conveyors. Then by using plastic covers which are rolled cross manner is used for collecting
and storing milk. The milk is then stored in cold storage room which is kept at a temperature
of 8 to 10 degree Celsius collected within a tank.
STORAGE ROOM
The milk packed is stored below 7 degree Celsius in a cold storage room. This is done until it
is dispatched through the other end. Here the cold temperature is maintained through the
method of cooling water coming from the refrigerator kept outside.
CIP ROOM (CLEAN IN PLACE)
The tanks used for pasteurization are then cleaned by using alkali and acids. There are 3 tanks
one contains acids nitric acid other contains alkali (caustic soda) and another one tank has
acids, alkali and hard water.
GHEE ROOM
Ghee is the most important and delicious ingredients in almost all Indian sweets and
dishes. There are different methods used for preparing ghee namely, butter to ghee, direct
melting method etc. In Pathanamthitta dairy, cream is melted to form ghee and then collected
within other tanks in which it is stored and allowed to settle. The cream is obtained from the
cream separation method and then proceeds by the steam which is called the pre-satisfaction
process. Steam is passed over the cream at about 110kg pressure for about three and a half

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hours. The cream then melts and water evaporates, the resultant will be ghee. It is packed in
500 ml, 1 kg bottles and is then dispatched.
SAMBHARAM ROOM
Butter milk is available in small sachets of 200 ml often and is processed quite easily
by separating out the cream from milk manually. Curd is thoroughly agitated and equal
quantity of chilled water is added to it. Small proportions of chilly, ginger, salt, curry leaves
are added and mixed. It is covered in plastic covers and dispatched.
CURD ROOM
Curd is made of skimmed milk or fatless milk. The skimmed milk is heated to about 50
degree Celsius by passing through an autoclave for about 2 hours and passed onto next tank
for cooling. This is then taken and a yoghurt culture is added to it because of the presence of
lactobacillus, the gets fermented into curd. This is then kept inside an incubator at 43 degree
Celsius and then added to a big tank in which milk is present. After this curd is formed which
is stored at about 3 degree Celsius. It is a fermented product and is free from cholesterol and
available in 500 ml and in bulk.
KEEP IN QUALITY TEST
A sample of this curd is taken to the lab and then it is kept in for testing the quality i.e.
to know how long it can be used without getting stale. If the packet bulges due to emission of
gas from the bacteria present in the milk, then it can be conformed to have become stale.
ROLE OF MANAGER
 Ensure the adequate quality is produced according to the demand market.
 Necessary safety measures are adopted before the plant is operational.
 Adopt measures for the release of new milk products
SIGNIFICANT FACTORS FOR SUCCESS
 Regularly meets the demand of market.
 Maintaining staff hours and work shifts.

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5.5 QUALITY CONTROL DEPARTMENT
Milma works with an aim of giving high quality products to its customers. The quality
control department is headed by Quality Control Officer and is followed by bacteriologist, lab
technician and lab assistant. Milma‟s products are tested at each and every stage of
production. This department is maintained mainly for checking the quality of products right
from the reception stage till the final stage of production and thus providing the customers
with best products. Milma collects milk on the APCOS pattern which has been originated
from Amul and has been replicated in Kerala through Milma. It is meant mainly for the
benefit of milk farmers. About 34,000 litres of milk is obtained daily at the dairy. High
quality is maintained within the dairy by not touching the milk with hands except at the time
when it is bought from the societies.
Structure of Quality Control Department (Fig 5.7)











The Pathanamthitta dairy has received the MMPO (Milk and Milk Products Order) standard
and is on the verge of attaining ISO 9000 certification. The milk should not be acidic in any
case. The Ph of milk should always be in the range of 6.5 to 6.7.
QUALITY
DEPARTMENT

QUALITY CONTROL
OFFICER

LAB TECHNICIAN

LAB ASSISTANT

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The quality is monitored at all stages in terms of flavour, temperature, acidity etc. All the
physical and chemical properties are also considered. Various quick tests are conducted like
bacteriological test, phosphates test, ethylene blue reduction test, moisture test, RM value
analysis etc. Phosphates test is conducted to check whether pasteurization has been effective
done or not. In the methylene blue test, a sample of milk is taken and methylene is added
which turns the milk blue but if it becomes white again then it is considered to have become
acid and not fit for usage. Usually tests are conducted to find out whether the milk in neutral,
or whether hydrogen peroxide has been added by the farmers.
A Hot Air Oven is used for the sterilization which is a dry sterilization method for sterilizing
the equipment‟s used in testing. The test adopted for various products are as follows:
 Milk – Acidity test, MPRT, Fat test, SNF test, Bacteriological test
 Lassi – Total Solids test, Acidity test, Bacteriological test
 Peda – Moisture test (the level should be below 10 degree Celsius), Bacteriological
test
 Paneer – Moisture test (the level should be below 70 degree Celsius), Fat test (above
50% fat), Total Solids test, Bacteriological test
 Sambharam – Acidity test, Total solids test, Bacteriological test
 SFM (Sweetened Flavoured Milk) – Curdling test, Turbidity test
 Curd – Total solids test, Bacteriological test
About 0.16% acidity should be present in the milk. Once in ten days the milk value report is
send to the producers and if the report shows variations, then veterinary doctors are
approached. Quality departments are functioning as per the PFA Act. The products are
marketed accordingly which is very comprehensive procedure being followed. As Milma is
having good brand loyalty there are very few competitive strategies formed affecting the
growth of milma. Milma is very much quality conscious and hence customers have lot of
faith in its products.
ROLE OF QUALITY CONTROL OFFICER
 Coordinate activities of ensuring quality at regular intervals of time.
 Maintaining the prescribed ISO, FSSA quality standards.
 Preparation of quality control reports on both daily and monthly basis.

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5.6 PROCUREMENT AND INPUTS DEPARTMENT
Procurement of milk is the important function of this department and is headed by the
Assistant Manager of the dairy, purchase and store department. The department ensures the
timely availability of all other materials other than milk, veterinary medicines and other
inputs. This department mainly deals with the procurement of milk from farmers in the
village area through the regional societies. The village farmers are also benefited in return to
a great extent as they are given reasonable prices for the milk they supply. Actually, milma
was started so as to save the excess milk which was being wasted by the farmer. But with the
introduction of Milma, this excess milk started procuring it on a pricing rate based on fat and
NFS content present in milk.
Structure of Procurement and Inputs Department (Fig 5.8)














PROCUREMENT AND
INPUTS DEPARTMENT

ASSISTANT
MANAGER

VETERINARY
OFFICER

MILK PROCUREMENT
OFFICER (MPO)

ASSISTANT MILK
PROCUREMENT OFFICER

SUPERVISORS

MANAGEMENT
APPRENTICE

VILLAGE RESOURCE
PERSONS

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Milk is procured on the basis of APCOS payment in all the Milma dairies. APCOS payment
is based on quantity i.e. based on the fat content and SNF present in the milk. When milk is
brought, and collected from the societies, there are always large numbers of invisible
microbes present within the milk which will keep multiplying at the normal atmospheric
temperature. So, to keep them inactive, they are stored at very low temperature by chilling
them at collection called BMCC (Bulk Milk Cooling Centres).
BMCC collects milk from all regional societies and then microbes are made dormant
and then brought to the dairy plant for future processing. Totally there are 360 societies
registered in Pathanamthitta. There are three tanker lorries for the procurement of milk from
various societies. Milma collects milk from the societies twice a day. Once in every ten days‟
payments are made to the farmers. Societies make weekly payments to the milk producers.
For 1 litre of milk, Rs 19.20 is given to the primary societies annually according to the
quality of milk.
The basic structure of the department is as illustrated and there is a manager as the head
and then comes MPO (Milk Procurement Officer) followed by a Veterinary Officer (VO) and
finally supervisors who go out to the societies to check and ensure the quality of milk
procured. Milma provides technical inputs for milk production like veterinary aids training
for milk testers at training centres. They also render Emergency Veterinary Units (EVU) for
the farmers. EVU‟s are appointed by Milma itself at substantiate emergency conditions when
the veterinary doctors are not available at once. They also render emergency services through
EVU like vaccination, medicine and weekly check-ups. The other inputs supplied by Milma
to the farmers are such that the farmers are motivated and benefited in all respects. The
commonly used methods are:
 Calf adoption scheme in which calves are given to the farmers and they are freely fed
by Milma.
 Heifer adoption scheme.
 Vaccinations are made free for the cows and calves.
 Insurance is also provided for the cattle in case of accidents or unexpected deaths.
 Infertility camps are also set up yearly to treat the cows and methods are adopted to
remove the sterility in them.
 Farmer seminars are held yearly.
 Money through loans and various monetary amenities are given to the farmers.

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 Scholarships are given to the children of these farmers who are students from 10
th

standard to post graduation under certain conditions like the respective farmers should
provide milk of about 1000 litres for 1 year to the concerned regional society.
 Farmer‟s health is also insured through various health insurance policies.
 Artificial insemination process.
 Cattle insurance.
 Production enhancement.
 Ultra-treatment of paddy straws.
 De-worming of cows, heifers.
 Financial assistance to active milk producing farmers.
 Implementing group insurance schemes of LIC for milk producers.
ROLE OF MANAGER
 Providing adequate input to the cattle farmers on regular basis.
 Conducting MIS meetings.
 Farming policies and schemes to increase the procurement and policies.
SIGNIFICANT FACTORS FOR SUCCESS
 Providing regular milk price for farmers.
 Increase of product value.
 Credible and reliable, since managed by farmers.
 Income arrived at a faster rate.

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5.7 MAINTENANCE AND ENGINEERING DEPARTMENT
This department is concerned with the maintenance and repair works of existing machines of
new machines. It also handles all the electric wiring and other electric supplies. This
department is headed by Assistant Manager and is followed by deputy engineer, technical
superintendent and electricians.
Structure of Maintenance and Engineering Department (Fig 5.9)















There are separate rooms for electricity generators, boilers, refrigerators kept outside the
production plant connected through pipes and tanks. This department exercises its functions
in sections like:
MAINTENANCE AND
ENGINEERING DEPARTMENT

ASSISTANT
MANAGER

DEPUTY
ENGINEER

TECHNICAL
SUPERINTENDENT

ELECTRICIANS OPERATORS MECHANICS

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 Service equipment
 Routine equipment
SERVICE EQUIPMENT
It includes maintenance and repairs of equipment needed in the production process
which includes boilers, refrigerators, air systems, electrical systems etc. It deals with all
equipments used in the production department. It also deals with the pasteurization, milk
chillers, cream and separators.

ROUTINE MAINTENANCE
The routine requirements and the production process in the plants are also undertaken by this
department. Water arrangements, saturator approval consent, DC board, diesel, furnace oil
license renewing is also done here.
VEHICLE SECTION
There are totally 17 vans and 3 tankers in Pathanamthitta dairy plant on a contract basis. This
department must see all the scheduling, maintenance, operating tax, insurance etc. Besides,
this department does all the quotations regarding the purchase and all other matters to be
taken and they have to see if any specification is needed. The purchased items are inspected
by this department so as to ensure that they are of good quality.
This department can be broadly classified into the following sections:
 Boiler
 Refrigerator
 Electricity substation
 Effluent plant treatment
BOILER ROOM
There are two boiler units and steam closed vessels generating steam which is useful
for pasteurization, can washer unit, tray washing unit and ghee melting. These are called fine
tube boilers which have capacity of 2 tons. Furnace oil, water, electricity are the main
constituents. These boilers are inspected by the factory and boiler inspector and the machine

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license comes under explosive act. The boilers have an annual and periodic maintenance. The
boilers work from 8 am to 4 pm and 4 pm to 12 pm. The features of boilers are:
 Capacity – 2-ton steam per hour
 Heating surface area – 50.46-meter square
 Steam pressure – 3.5 kg/cm
REFRIGERATION ROOM
Compressor measuring A7*7 reciprocating compressor is used. Its functions are:
 Sucking the refrigerant i.e. ammonia gas,
 Compression of refrigerant and then discharge.
 Servo freeze – 68 is the oil used for lubricating the compressor.
 Condenser is coil like in nature and water can flow through the coil and the ammonia
vapour changes its state to liquid.
 Waste water is collected at the bottom tank and then again it is pumped through a
pump above the condenser and then there is a receiver tank.
 The receiver tank collects the liquid refrigerant which does not vaporize.
 Evaporator does the evaporation of the liquid refrigerant.
Effluent Treatment: This waste treatment plant processes waste water and uses it for more
useful purposes through methods of precipitation. This precipitated sediment is separated and
dried and is used for gardening or for other such purposes.
ROLE OF MANAGERS
 Monitoring the monthly stock register
 Purchase of required material at the required time.
 Timely maintenance and repair work of machine and machine parts.
 Decrease the number of milk sachet leaks.
 Minimize the number of break down.
SIGNIFICANT FACTORS FOR SUCCESS
 Team work.
 Use of technology in inviting tender.
 Maintaining of monthly and weekly stock register.

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CHAPTER 6
PORTER’S FIVE FORCE
ANALYSIS

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6. ANALYSIS OF THE ORGANISATIONAL PERFORMANCE OF
TRCMPU PATHANAMTHITTA DAIRY
PORTER’S FIVE FORCE ANALYSIS
Porter‟s five forces is frame work for the industry analysis and business strategy development
developed by Michael.E.Porter of Harvard Business School in 1979. It draws upon Industrial
Organization (IO) economics to derive five forces that determine the competitive intensity
and therefore attractiveness of a market. Attractiveness in the context refers to the overall
industry profitability. An “unattractive” industry is one in which the combination of these
five forces acts to drive down overall profitability. A very unattractive industry would be one
approaching „pure competition‟, in which available profits for all firms are driven down to
zero. Three of porter‟s five forces refer to competition from external sources. The remaining
are internal threats.
The structure of Porter’s five force analysis (Fig 6.1)








The five forces of Porter‟s are;
 The treat of the entry of new competitors
 The threat of substitute products or services.
 The bargaining power of customers
 The bargaining power of suppliers
 The intensity of competitive rivalry
Industry Rivalry
Potential entrants
(Threat of Mobility)
Buyers
(Buyer Power)
Suppliers
(Supplier
power)
Substitutes (threat
of Substitutes)

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6.1 PORTER’S FIVE FORCE ANLYSIS ON MILK INDUSTRY
1. The threat of the entry of new competitors.
In dairy industry the threat of entry of new competitors is very high because of the
liberalization and privatization of government. It is easy for new company to entry into this
field that created a lot of competitors for Milma
2. The threat of substitute products or services.
The threats from substitutes are negligible in the case of Milma products. Only substitute for
milk available in the market is the milk powder from other leading companies. But the threat
created by them is very low.
3. The bargaining power of customers.
Customers are having a good bargaining power because there are lots of local brands
available in the market with considerably low price than Milma and also with good quality.
4. The bargaining power of suppliers
There is no bargaining power for suppliers in the case of milk. Since milk is a product which
cannot be kept for a long time so suppliers cannot bargain much more. Suppliers can only
bargain in the case of skim milk powder and butter oil. Both are purchased from Fonterra
Company, New Zealand.
5. The intensity of competitive rivalry
In the past Milma is the monopoly stage. But now it faces a stiff competition from the
competitor. There are several types of local brands available in Pathanamthitta. With the
good quality products produced during these days help Milma to face this competition.

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CHAPTER 7
SWOT ANALYSIS,
FINDINGS AND SUGGESTIONS

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7. SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weakness,
Opportunities, and Threats involved in a project or in a business venture. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favourable and unfavourable to achieve that objective. The technique
is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and
1970s using data from Fortune 500 companies. A SWOT analysis must first start with
defining a desired end state or objective. A SWOT analysis may be incorporated into the
strategic planning model. Strategic Planning has been the subject of research.
 Strengths: The characteristics of the business or project that give it an advantage over
others.
 Weaknesses: The characteristics of the business that place the business or project at a
disadvantage relative to others.
 Opportunities: The elements in the environment that the business or project could
exploit to its advantage.
 Threats: The elements in the environment that could cause trouble for the business or
project.
Identification of SWOTs is essential because subsequent steps in the process of planning for
achievement of the selected objective may be derived from the SWOTs. First, the decision
makers have to determine whether the objective is attainable, given the SWOTs. If the
objective is not attainable a different objective must be selected and the process repeated. The
SWOT analysis is often used in academia to highlight and identify strengths, weakness,
opportunities and threats. It is particularly helpful in identifying areas for development
7.1 STRENGTHS
 Milma has 9th position in the list of top dairy companies in India.
 High quality product
 Milma has and maintains a good brand name in the Kerala dairy market.
 ISO certification
 It meets the market demand properly.
 Adequate support from NDDB and Government of Kerala
 Eco- friendly plant

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 Strike free campus
 Products are available at a reasonable price.
 There are great number of employee benefit scheme
 There is good coordination between the manager and the departmental heads
 There is good interaction and co-ordination between all the departments.
 Strict disciplinary actions and quick grievance redressal are taken.
7.2 WEAKNESSES
 Increasing cost of procurement of raw milk and material
 Inadequate sales promotion campaigns
 Inadequate sales outlets in rural areas
 Absence of technology up gradation programs
 Political interference in formulating policies
 Faces milk shortage
 There is no Research and Development department which is considered as an
important one in any organization.
 Just meeting the demands of the market rather creating more demand.
 Low advertisement and promotional activities for products other than milk
7.3 OPPORTUNITIES
 Scope of product diversification.
 The company can expand its distribution area.
 The organization can increase its goodwill and profit if it gives more emphasis on
exports.
 More opportunities to create demand in rural areas.
 Government support, i.e. subsidies tax concession
 Good scope for capturing huge market share in the milk products category.
 Scope to process more milk from other states, thus increasing productivity.
 Large product range
 Increasing level of advertisements and related activities can lead to increase in sales at
a higher rate.

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7.4 THREATS
 The increasing intervention of milk powders of various companies in market is a
major threat for the organization.
 Faces milks shortage within state
 The pricing mechanism is not flexible, which may lead to change in preference of
customers.
 Seasonal fluctuations in the availability of raw materials
 New competitors may reduce market share.
7.5 FINDINGS AND SUGGESTIONS
FINDINGS
1. Milma is the most popular brand in Kerala, which makes it clear that it has a good
image and brand loyalty as well.
2. Pathanamthitta dairy is the first diary in Kerala to get ISO 9002 certificate for
manufacture.
3. Since the head office has the prime authority, Pathanamthitta dairy cannot take
decisions independently.
4. The major products of Pathanamthitta dairy are pasteurized double toned milk,
Pasteurized homogenized toned milk, ghee, curd, sambharam and peda
5. Malanadu, Sabari, Royal, A-one, Ksheera, Balaji, Star, Namboothiri, Britannia and
Amul are the major competitors of Milma products
6. The number of strikes and complaints are usually less in the dairy which proves that
there is a good atmosphere for the workers to work on and most of their needs are
being allowed.
7. “Farmers Prosperity through Customer Satisfaction” is the mission of Milma. The
statement is undoubtedly true as farmers are given much importance by the
organization.
8. A clean and hygiene environment is maintained inside the plant.
9. A well-maintained security system is followed by the unit.
10. An outlet named „Milma Shoppe‟ functions outside the unit where all the milma
products are available and a high rate of sales occurs in almost all the days.
11. 82% of the total revenue of the dairy is from sale of milk and 18% from milk
products.

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12. Increasing cost of procurement of raw milk and materials, Inadequate sales promotion
campaigns, Inadequate sales outlets in rural areas are the weaknesses of
Pathanamthitta dairy
13. There is no computerized alert system to detect problems in the plant.
14. Most of the functions in the unit are done manually, which makes it clear that the
production process is not fully automated.
15. Company is properly auditing the books and accounts in every financial year
16. Free flow of communication exists in the organization.
17. Dealership commission is low compared to competitors
18. Better coordination among different departments
SUGGESTIONS
The following suggestions may help the firm to gain better results:
1. The firm should give more emphasis on advertisement and other promotional
techniques which will in turn leads to increase in sales.
2. Implementation of a computerised alert system may help to detect problems quickly.
3. The marketing strategies of the organization may be redesigned so as to popularize
ghee and other milk products.
4. Computerized performance appraisal system may be introduced in the organization
5. Should implement R& D department for producing new products and improve in
certain areas.
6. The management must discuss the problems with the representative of workers.
7. The HRD dept should try all efforts to implement the finger punching impressing
system
8. More production and promotion of Sambharam may increase the market in the
Sabarimala season.
9. A proper system of customer feedback should be adopted.
10. More Milma Shoppes must be started in urban areas with the help of government
Nodal Agencies such as Kudumbasree.

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CHAPTER 8
CONCLUSION

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8. CONCLUSION
The organisation study at Milma was done with an objective to understand how an
organisation functions, what are its major departments and functioning of these departments.
The study at Milma provided the opportunity to learn the organisational goals and objectives,
various department that conduct critical functions and the interrelation between them. Milma
is observed to be an organisation that not only has an objective of working profitably but also
a socially responsible organisation that cares of different sections of the society viz; the milk
producers, and the milk consumers.
Milma, “The goodness Kerala wakes up to” has good image in the minds of people. MILMA,
Pathanamthitta dairy started its operation from 2001. Milma has a major role in channelizing
milk from rural areas to urban areas to maximize the return to produce. The motto of Milma,
“Your health is our concern”, has become synonymous for assured quality.
The organization, Milma has established different departments based on functions like
procurement, production, human resource, marketing etc. It ensures quality of product
through established systems which are monitored by quality control department. Finally the
project enabled understanding of an organisation and its objectives and how they function to
achieve organisational objectives.

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BIBILOGRAPHY

BOOKS
 S. A. Sherlekar (1995). Marketing management. Himalaya Publishing House
 Ashwathapa. K. (2005). Human Resource Management. New Delhi : Tata Mc Graw
Hill Publication Company LTD. Third edition
 Kothari C R. (2004). Research Methodology Second Edition. New Age International
(P) Ltd., New Delhi

Websites
 www.nddb.coop
 www.milma.com
 www.milmatrcmpu.com