MILMA FEEDS EXECUTIVE SUMMARY The national leaders of independent India adopted a policy of mixed economy for the

development of our motherland. The various five year plans gave more emphasis for the development of infrastructure and for the formation and development of public sector undertaking. The ministry is now selling controllable part f shares of public sector undertaking at profit.it is in this background that there are some public sectors and co-operative organization functioning satisfactorily even in the midst of severe stress and strains. Milma Feeds, Pattanakkad, is one such undertaking under the co-operative sector which is working at a profit. So it would be much interesting to study the different aspects of working of the company to evaluate its progress, prosperity and problems. During my study I was able to study the organization in detail. The organization is having seven departments; they are: Personnel Department, Purchase Department, Production Department, Quality Control Department, Stores Department, Marketing Department and Finance Department. During my study i was able to interact with the employees of the entire department. So I was able to find their strength, weakness, opportunities and threat. I was able to give some suggestion for improving their day to day work. The Personnel department deals with the recruitment, training, placement of personnel at the right time and at the right place, orientation program, performance appraisal, welfare etc. The purchase department deals with the purchase of raw materials from Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh and Haryana. The production department deals with the conversion of raw materials that has been purchased from different locations into finished products. The quality control department checks the quality of raw materials and also the product that they produce. The nutrionist who controls the quality of cattle feed heads the quality control department of the company. The store section establishes adequate control over the raw materials for production, packing materials, finished products and old gunny bags at all levels of storage and delivery. The marketing department deals with the sales and dispatch of products and also customers service and sales promotion. The finance department deals with all kinds of accounts related to personnel, purchases, stores, marketing, work contract, costing, budgeting, central excise etc. KARUNYA SCHOOL OF MANAGEMENT Page 1

MILMA FEEDS INTRODUCTION Kerala co-operative milk marketing federation (KCMMF) based at Trivandrum was established in Kerala. It has trade name ‘Milma’.There aim is to promote milk-marketing activities in Kerala and to give assistance to farmers to enhance their activities Milma is an organization of farmers. They are the producer of the raw material milk; the shareholders in the organization the chairman and the board of directors are elected from among them. The farmers are the members of the APCOS. Milma has two cattle feed plants, one each at Pattanakad in Alappuzha District and Malampuzha in Palakkad District. The plant at Pattanakad was established in 1985 with an investment of 142 lakhs and the installed capacity of the plant was 100 MT per day. Later during 1993 this plant was expanded to 300 MT per day capacity at an investment of 307.5 lakhs. This plant can also produce pellet form of cattle feed. The plant at Malampuzha was set up by Animal Husbandry Department, Government of Kerala in 1972 with an installed capacity of 100 MT per day and later during April 1983 it was handed over to KCMMF as part of the agreement between Government of Kerala and NDDB for implementation of Operation Flood II programme in Kerala. This plant was modernised with computerised batching operation with an investment of Rs.56 lakhs during 1989 and subsequently expanded to 200 MT per day capacity during 1995 with an investment of 214 lakhs. These plants were set up to supply good quality balanced compounded Cattle Feed at reasonable rates to member farmers of APCOS. The capacity augmentation from 200MT to 300 MT with introduction of Pelletization facility was completed. The total production capacity of the plants is 600 MT per day, i.e., 300 MT per day capacity plant at Pattanakad and 300 MT per day capacity plant at Malampuzha. Balanced cattle feed is the major input provided to the dairy farmers of the State from the Federation. There is a high level of acceptability for this product in the market. Milma is now producing 600MT cattle feed a day. It produces both mash and pellet form of cattle feed. In addition to augment the balanced feed and to support vitamin level in milch animal, milma has come out with milma mineral mixture - "milma min". The cattle feed is distributed to farmers at reasonable rate through Apcos, Dealers and Government agencies. KARUNYA SCHOOL OF MANAGEMENT Page 2

MILMA FEEDS KERALA CO -OPERATIVE MILK MARKETING FEDERATION LIMITED

CITIZENS CHARTER

PREAMBLE This charter is a declaration of Our Vision, Mission, Values, Commitments, Standards and our expectations of others.

OUR VISION To constantly strive to provide valued customers with the highest quality cattle feed with the best standards of service by our passionate and focused work force using state of the art technology ensuring sustained growth and simultaneously ensuring dairy farmers’ delight by better realization of milk price and offering needed service at his/her doorstep.

OUR MISSION Our mission is “ Farmers prosperity through consumer satisfaction ”.

OUR QUALITY We, at cattle feed plants are committed to produce and distribute quality balanced cattle feed at the lowest price possible for satisfaction of customers in our fully automated plants. For this goal we plan and implement strict quality control management and continue improvement by use of good quality raw materials and strict manufacturing process, to ensure that Dairy Farmers get balanced cattle feed at their doorstep.

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MILMA FEEDS OUR COMMITMENTS

We commit to:

 All officers dealing with public have to carry an identity card.

 Keep the personnel and business information disclosed to us as confidential.

 Timely distribution of our products to ensure customer satisfaction and delight.

 Strict adherence to the prescribed safety, health and environmental production standards.

 Continuous up gradation of technology and development of human resource by continuous training.

 Produce and distribute quality cattle feed, milk & milk products, conforming to stringent specifications of FPO, BIS, AGMARK and MMPO.

 Provide every possible assistance to public by the Public Relation Officers in the Head Office and by Officers in our Units. The officers nominated would, besides, provide relevant information including procedures that may have to be followed by the public in dealing with the Federation.

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MILMA FEEDS OUR MOTTO The name ‘MILMA’ and its motto is “Yours Health is our Concern”. Have now become synonymous with assured quality. This is amply proved by the fact of all our products mainly “Ghee” selling solely under the trade name of MILMA.

OUR STANDARDS Our two cattle feed plants, each of 300 tons per day capacity are fully automated. We use only good quality raw materials and strict manufacturing process to ensure that milk farmers get quality cattle feed at their door step. We have set upon ourselves standards for all transactions with you. We undertake that without unnecessary delay we shall promptly communicate the same to the party concerned.

OUR EXPECTATIONS FROM CLIENT We expect you to be reasonable and prompt in exercising your rights and obligations in all your transactions with the Federation without extending inducement of any kind and not raising any frivolous issues.

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MILMA FEEDS ORGIN OF THE ORGANIZATION At down the seventies, the diary sector in Kerala, though fairly large, didn’t present an organized look. However it looks a leap forward in these direction eight southern districts of Kerala in the second phase of operation flood programmes during 1980.the ideology followed by operation flood was the remunerative linking of rural milk producing centres with the urban demand centres so as to build up a viable dairy industry. During 1987, six districts of northern Kerala were covered under north Kerala dairy project (NKDP).we could achieve spectacular progress in milk procurement and marketing with the implementation of the above programme. The second part of the operation flood programme has commenced from 1978 involving a total lay of 485 crores starting of co-operative milk supply federation, an important item of this scheme. A team of experts was attached to the federation starting of Anand model milk supply union was the main objective of operation flood.as a result of this effort milk production in the country has highly increased. Kerala was included in the second phase of the operation flood.

GROWTH & DEVELOPMENT The motto of co-operation is “of the people, by the people and for the people” is the foundation of the “three tier” system followed by organization. Milma have the village co-operative societies in the village level, which have the local milk producers as its members.at this level, procurement of milk at the society level takes place. The village co-operative societies at the regional level unit will form the regional co-operative milk producers union (RCMPU). There are three unions, they are: Thiruvanthapuram, Ernakulam and Malabar Union. These unions are popularly denoted as TRCMPU, ERCMPU and MRCMPU (Trivandrum, Ernakulam and Malabar Regional Milk Producers Union).these unions later federative at the state level to form state federation in Kerala Co-operative Milk Marketing Federation (KCMMF).

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MILMA FEEDS GROWTH OF APCOS The first APCOS was registered on 30th September 1981 and there has been no looking back ever since. Today there are 2315 APCOS throughout the state and the growth has been impressive. The success of the primary Milk Co-operative is also reflected in the growth of the membership in these societies. The membership at the society’s level grew by leap and bounds and crossed 6.37 lakhs in March 2001.The assurance of readily available market for the doorstep of the society twice a day regularly enhanced the growth of milk production that is reflected in the growth of milk procurement over the years.

MANAGEMENT OF KCMMF The KCMMF was among the first federation in India to have an elected board. There regional union function in a highly democratic and decentralized environment. All the unions have active elected members in their board, thus ensuring that it is truly an organizational for the producers, ran by the producers and functioning for the products. The unions are in turn well represented in the board of the federation with three nominees from each union. The other members of the board of the company is always a government nominee, where as the chairman is elected from among the president of milk co-operative society.

KCMMF

STRUCTURE OF DAIRY CO-OPERATION IN KERALA

Central Products Dairy, Alappuzha

Cattle Feed Plant, Pattanakkad

Cattle Feed Plant, Malampuzha

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MILMA FEEDS The organization of dairy c0-operation in Kerala has three tier structures. The primary milk co-operation functions at the village level, the regional milk producers union at the middle or district level. The KCMMF or milma acts as the apex body at the state level. The motto of cooperation is “Of the people, by the people and for the people”.at present there are three regional milk producers union which operates at Thiruvananthapuram, Ernakulam and Kozhikode respectively. The primary co-operative society functioning in the districts of Thiruvananthapuram, Kollam and Pathanamthitta are affiliated to the Thiruvananthapuram Regional Co-operative Milk Producers Union (TRCMPU).While milma take over charge from the rest. Anand Pattern Co-operative Society (APCOS) was registered on 30th September 1981 and there has been not looking back since. Today there are 2350 APCOS throughout the state and the growth has been impressive. The membership at the society level grew year after year. The assurance of readily available milk collected from the doorsteps of the society twice a day regularly encouraged the growth of milk production, which is reflected in the growth of milk procurement over the years.

MAJOR PLAYERS & COMPETITORS IN THE INDUSTRY

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MILMA FEEDS  Godrej Agro Vet Ltd.  Kerala Feeds  Prima Agro Products Ltd.  Pondicherry Co-operative Milk Producers Union Ltd.
 Tamil Nadu Co-operative Milk Producers Federation.

CURRENT POSITION IN KERALA MARKET Milma cattle feeds enjoy the lions share in Kerala market. People have a great preference for this product. The name milma is familiar with everyone in Kerala. The main advantage which we possess is quality the company is producing huge quality, the company does not compromise on quality.as our products main high standard of quality more merchants and customers favour our products and by this way the product gain high market porential.There exist a tight competition our product stand out in the market.

INTRODUCTION The success story of the diary scene in India during the sixties was the farmer owned Amul Co-operative society at Anand in Gujarat, with its integrated approach to production, procurement, processing and marketing on co-operative lines over the years. This involved itself KARUNYA SCHOOL OF MANAGEMENT Page 9

MILMA FEEDS into a model based on the self-rule by the farmers ensuring maximum returns to them. This model came to be known as “Anand Pattern”. The efficiency of the project was worth to replicate. Therefore, a dairy programme called “OPERATION FLOOD” was launched in 1970 under the agencies of National Dairy Development Board (NDDB) which functioned as the technical consultants and Dairy Corporation the funding agency. Smt.K.R.Gouri Amma, at the time when she was the minister of industries of Kerala asked a plan and project report for the establishment of a cattle feed plant around cherthala town, after extensive study of milk producing areas.Dr.Varghese Kurain the Chairman, NDDB established the plant with the support of NDDB.This plant was established under operation flood 11 programme with a production capacity of 100 ton of balanced cattle feed per day. The milma cattle feed plant is one such undertaking under the co-operative sector.so it would be interesting to study the different aspects of working of the company to evaluate its progress, prosperity and problems. The foundation stone for this plant was laid on 4th April 1981 by Dr.Varghese Kurian; Chairman of NDDB.This plant was commissioned by Shri.K.Karunakaran, the former Chief Minister of chief on 25th April 1985 with an initial capacity of 100 metric ton per day.

MILMA FEEDS, PATTANAKKAD The cattle feed plant at pattanakkad is a large scale productive unit controlled directly by the Kerala Co-operative milk marketing Federation (K.C.M.M.F) having its head office at Trivandrum. KARUNYA SCHOOL OF MANAGEMENT Page 10

MILMA FEEDS The cattle feed plant; pattanakkad was started on 25th February 1985 with initial capacity of 100 metric tons per day which has now increased to 300 metric tons per day.it is situated in an area of about 12 acre to the west of national high way NH47 of about 7 km north of Cherthala town in Alleppy district. Cattle’s breeding is a profitable business of the middle class of Kerala. The milk business of the state largely depends on cattle breeding. The storage of fresh grass and hay urges the farmers to switch on to cattle feeds. The cattle fed plant, pattanakkad can be described as important and well established unit among the cattle feed plants in India. Its importance is noted from the fact that it is established and situated on the rural areas of Kerala. There are two cattle feed plant under NDDB with total capacity of 500 MTPD.The cattle feed plant could market the entire quality of feed manufactured even during the period of recession in this sector. They could achieve this because of the high quality standards of milma feed and it is a matter of pride that they have completed successfully with the established brands and caused out a name for themselves in the market and played the role of the sector. The expenditure incurred for the completion of the plant was Rs.73, 92,464.The initial capacity of the plant was 100 metric ton per day. Up to date computerized machines are used for production purposes. The batching method conducted using computer upraises the quality of the product. There is dust extraction system, which ensures dustless healthy environment in the plant and for implementing this system in 12 acres of land the expenditure incurred was Rs.20, 00,000.

FOUNDATION OF THE PLANT

The cattle feed plant, which run by Kerala co-operative milk marketing federation (KCMMF) had a meeting with ministers in 1974.the meeting has précised over by K.R.Gouriyamma, who, who was the honorable minister of rural development in kerala.Dr.Varghese, Founder of national KARUNYA SCHOOL OF MANAGEMENT Page 11

MILMA FEEDS diary development board (NDDP) had asked to take the project and to make an estimate for beginning the cattle feed at pattanakkad. The national diary development board gives help of the program. The meeting that held in 1979 many favourable factors available on the present spot (Pattanakkad), which made them select the place for the plant at pattanakkad.

LOCATION OF THE PLANT

Cattle feed plant; pattanakkad is located in a beautiful spot in the southern boundary of thuravoor panchayat in cherthala taluk in Alappuzha district of Kerala. The location of the company is at the boundary of the pattanakkad and thuravoor panchayat.The plant is situated in between Alappuzha and Ernakulum, almost as its middle, Alappuzha town, which is one of the important towns for trade commercial activities. There are enough transportation facilities because of direct routes from Kochi to Alappuzha. Nowadays railway facilities are also available. • FAVOURABLE FACTORS

When the starting of the plant is taken into account, it has been made possible during that time because of various favourable factors like: 1. Economic Factors
 Demand from Local Customers.  Transport Facilities.  Availability of Skilled Labours.

2. Geographical Factors
 Availability of Raw Materials.  High Fertile Soil.

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MILMA FEEDS  Climate.

GOVERNMENT ASSISTANCE

About 12 acres of land was acquired by the government by changing the residence of the land owners and handed over to the KCMMF Ltd for the construction of the plant. This was indeed a great help by the government or else KCMMF would have been in large crisis. Time to time the government has also given financial assistance to the plant.

OUR ASSOCIATES

Milma is in constant touch with other organizations in this sector.it is only through this active exchange that milma grew from a small dairy co-operative to the position it holds in Kerala today. Our Chief Associates are:

National Dairy Development Board

NDDB under the guidance of Dr.Varghese Kurian set up the K.C.M.M.F Ltd in 1980.ever since then; there has been a very close co-operation between the NDDB and the federation. The Operation Flood Programme was started by NDDB and has been the funding agent for the Operational Flood Programme in Kerala.

Amul

The dairy co-operative in Gujarat have been the inspiration for the development of such a vast network of dairy C0-operative in Kerala. Among the Co-operative in Gujarat, the Kerala District KARUNYA SCHOOL OF MANAGEMENT Page 13

MILMA FEEDS Co-operative Milk Producers Union (KDCMPU) is the first in this sector. Our Co-operative are called "Anand Pattern Co-operative Societies” (APCOS).

Government of Kerala

The phenomenal success of the dairy Co-operative in Kerala could not have been possible without the foundation of the Animal Husbandry Department, Dairy Development Board and Kerala Livestock Development Board of the government of Kerala.

COMPETITIVE STRENGTH

Milma is considered as one of the leading manufacturer of milk products in Kerala. There are a number of competitors in these filed. Leading competitors in this field are K.S. Cattle Feed, Godrej Cattle Feed and Kamadhenu Cattle Feed. All these products have established a market of their own. There is little exception for our product. Since we are producing high quality product at a reasonable rate, we are having a large number of customers. Our company being a government undertaking the products is distributed to the customers at subsided rate. This is the main highlight of our company. Our products are of exceptional quality and are readily available in the market. We have a wide network of distribution system in our organization. This helps us to distribute our products to our valuable customers within no time. As a result our products are easily distributed to the rural areas in split seconds.

FUTURE PROSPECTS

Being developing production unit milma cattle feed plant has been always having certain dreams, which were all fulfilled with the passage of time due to the efficient machinery and KARUNYA SCHOOL OF MANAGEMENT Page 14

MILMA FEEDS management staff. Earlier a prospect was the Pelletization of the milk. This too was fulfilled about a year ago. Now they plan to stop mash production and shift over completely to pellet production due to the increasing demand of the pellet feed.

PRODUCT PROFILE

Milma produces and markets cattle feed. Milma has the capacity of producing 600 metric tons of cattle feed plant. Milma distributes the cattle feed through Anand Pattern Co-operative Society and other channel at relatively lower price. Milma have a range of products from wholesome pasteurized milk to pure ghee, creamy butter, nourishing sterilized flavoured milk, ice creams and cattle feed. All the products are strictly adhered to the PFA rules and are sent to the market only after stringent quality checks. A marketing chain consisting of 1500 outlets, across the state ensure accessibility of our products to one and all. Our commitment to the quality of milk that we deliver starts right at the doorstep to the village producers. The products of cattle feed plant, pattanakkad, Alappuzha are cattle feed and milma min (Vitaminised Mineral Mixture Cattle Feeds are sold under the brand name Milma, Gomathi, Pellet, Gomithra By Pass Protein, Govardhini Mash and High Energy Feed. Due to the recommendation from customers milma have come out with pellet cattle feed. Milma have taken valuable measures to maintain quality rom the time of purchasing raw materials throughout production.

ORGANIZATION STRUCTURE

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MILMA FEEDS The organization chart and the associated information show who reports to whom and how tasks are both divided up and integrated.in the cattle feed plant at pattanakkad, the senior manager is the apex designation. Six important departments are working under his position. They are finance department, production and maintenance, marketing, personnel or H.R.D, Purchasing and Animal Nutrition Department. The company is under the guidance of senior manager. All the other positions of department manager except purchasing department are known as assistant manager. The detailed discussion about the structure of the company is included in the organization structure. The system shows the low of activities involved in the daily operation of business including its core process and its support system. Modern techniques are applied in this organization. The organization is fully conputerized.in the cattle feed plant at pattanakkad, the bills are computerized. The accounting section, purchase section, H.R.D section are fully computerized.

ORGANIZATIONAL CHART

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MILMA FEEDS

SENIOR MANAGER

MANAG ER (F)

AM (P & A)

AM (P & M)

AM (QC)

MKT (OFF)

A.S.O

Accounts Officer

Dy ENGINEER

ANO

Asst. A/C Officer

Dy ENGINEE R

Tech Supdt

Chemist

DESCRIPTION
Jr. Supdt

 MANAGER (F) – Manager (Finance)

Sr. Asst

Dy ENGINEER

Technician

Lab Technician

Jr. Supdt

Sr. Asst

Jr. Asst

Skilled Worker

Off. Attndr

Off. Attndr

Off. Attndr

Lab Attndr

Jr. Asst

Store Attndr

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MILMA FEEDS  AM (P&A) – Assistant Manager (Personnel and Administration)  AM (P&M) – Assistant Manager (Production and Maintenance)  AM (QC) – Assistant Manager (Quality Control)  MKT.OFF – Marketing Officer  A.S.O – Assistant Store Officer
 Dy Engineer – Deputy Engineer

 A.N.O – Animal Nutrition Officer  Asst. A/c Officer – Assistant Accounts Officer  Tech.Supdt – Technical Superintendent  Jr.Supdt – Junior Superintendent  Sr.Asst – Senior Assistant  Jr.Asst – Junior Assistant  Off.Attndr – Office Attender  Lab Attndr – Lab Attender DEPARTMENTAL STUDY Departmentation is the process of grouping activities into units for the purpose of administration; in other words, it denotes grouping of related jobs and activities without violating the principal of homogeneity over which an executive has authority to exercise and assert. KARUNYA SCHOOL OF MANAGEMENT Page 18

MILMA FEEDS Every organization needs a well – established administrative set up for efficient functioning. The cattle feed plant in Pattanakkad is also having an established marketing , finance , production , purchasing , stores , quality control and personal & administration department. These departments are under the supervising of experienced and competent officers. All the departments are under the control of department heads. These department heads are controlled by general manger.

The following are the departments of milma cattle feed plant, Pattanakkad:

 Marketing Department  Finance Department  Purchasing Department  Production Department  Personal & Administration Department  Stores Department  Quality Control Department

INTRODUCTION According to Edwin B. Flippo, “Human resource management is concerned with the procurement, development, compensation, integration and maintenance of personnel of an organisation for the purpose of contributing towards the accomplishment of that organisation major goals and policies”. KARUNYA SCHOOL OF MANAGEMENT Page 19

MILMA FEEDS The department is paying an important role in both personnel and administrative function of an organization. The personnel management is concerned with procurement of right person for the right job at the right done easily.it is the management to deal personnel to have consistent work force. time, so work can be

ASSISTANT MANAGER (P&A)

task of the personnel with the problems of the

The personnel department is the major department, which assist all other department in the plant for carrying out their function. This department helps to procure a good relationship between the management and the employees in the plant. The personnel management is also concerned with the proper payment of wages and salaries, motivating employees by giving incentives, department of individual providing better working condition for achieving maximum productivity and efficiency. The personnel department functions within the circle of standing orders, staff regulations, pay structures, promotion policy etc., framed by the K.C.M.M.F. It goes without saying the provision applicable to the company under various acts namely the;

 Factories Act  Industrial Disputes Act  Kerala Co-operative Milk Marketing Federation Act,  Payment of Bonus Act duly followed in framing the policies of the company.

STRUCTURE OF PERSONNEL DEPARTMENT

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MILMA FEEDS

SENIOR ASSISTANT

SENIOR

JUNIOR ASSISTANT
FUNCTIONS

OFFICE
such as recruitment ,retainment and retirement.in this connection the important functions of personal manger is the recruitment of employees, selection, placement, promotion, transfer, training and development, wages and salary administration, welfare of employees etc. The Function of personal department also includes regulation of attendance, maintenance of records, advice the management on recruitment of staff, provide guidelines to the security officer for the effective implementation of security measures etc.

ASSISTANT

Personal department is trusted in their aspects concept

 MANAGEMENT The management of the cattle feed plant, Pattanakkad is done by the elected members of the Trivandrum regional co-operative milk producers union (TRCMPU).the board takes all policy level decision and planning. The board of federation meets seven times during a year. The KARUNYA SCHOOL OF MANAGEMENT Page 21

MILMA FEEDS managing committee takes all major operational decisions like recommendations of pricing strategies to meet the challenges in the market.

 HUMAN RESOURCES As in the past the federation has taken active role in the formulation of the personnel policies, framing of common service rules, finalizing long term settlement, bonus etc.an ambience of cordial industrial relation is maintained.in spite constraints at various levels, the smooth industrial relationship yielded rich dividend in enhancing the productivity. Employee turnover was negligible during the year.one of the major assets of this organization is its human resource. There is a pool of skilled efficient and qualified personnel. They work hard to achieve the goal of the organization. The company makes continuous effort for the skill upgradation of the workforce by deputing personnel for on the job training as well as orientation courses, seminars.

 RECRUITMENT & SELECTION According to Edwin Flippo, “Recruitment is the process of searching for prospective employees and stimulating them to apply for jobs in the organisation”. Recruitment of new employees in the cattle feed plant was formerly done through employment exchange by selecting the candidates recommended by them. This type of recruitment was adopted till 1995. Later the government brought the PSC, now Kerala Public Service Commission does the recruitment, the selection by direct and indirect selection. Temporary employees for six months are recruited through employment exchange and appointments on the contract basis .there are 181 employees including the executives in the company.in that nearly 130 are permanent, almost 50 are temporary.

 QUALIFICATION

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MILMA FEEDS Qualification required for appointing a person as a junior assistant is graduation with PGDCA.For appointing personal officer, Marketing Officer, Accounts Officer etc. needs MBA with specialization in the respective field. Accounts officer must be chartered accountant.

 PROMOTION Milma is giving promotion in every five years and grade is being given in every eight years, to those whose promotion is not possible. Promotion is actually shifting a person from lower position to a higher position carrying higher status, more payment, increase responsibility etc. Promotion shall be at the discretion of management. The basis for promotion will be seniority, suitability of the post, efficiency, skill etc.; of workers in lower posts for giving promotion the top management also considers all the condition such as experience etc.

 TRAINING & 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 males arrangement s 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.

 WAGES & SALARY ADMINSTRATION

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MILMA FEEDS The salary packages given to various grades of employees always differ, on account of the various act and agreement extended by the federation. However, the package has some common things. They are:  Basic Pay  Dearness Allowance  House Rent Allowance
 Minimum Increase of Basic Pay By 18.5 %.

The other allowances enjoyed by the workers are:  Night shift allowance
 Washing allowance  Stitching allowance, etc.

 INDUSTRIAL RELATION The relation between the management and workers is always cordial and peaceful. There are mainly 4 labour unions in the plant. Among the four unions, the first has a control over a large section of workers, since the number of workers is more than 100.The joint conference work committee, which includes the management employees and union leader’s forms the decision about working with new system in the plant.

 LEAVE

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MILMA FEEDS All employees are entitled a casual leave for 12 days in a year. Employees are also entitled for commuted leave and earn. Medical leave for 15 days with full salary is also permissible.14 encashment leave is also available for every permanent worker.  DISCIPLINARY ACTION To ensure a disciplinary action from the part of both employees and the workers the management has put forward standing order and code of conduct within which they have to act. Disciplinary actions will be taken if the workers are doing some kind of misconduct, fraud, theft, dishonesty and absence during working hours. Any misbehavior from the part of employees is taken into consideration and finds suitable remedy for the same by the personnel manager, charge sheet is also issued from the personnel department. Punishment for anti – disciplinary action are:  Warning  Increment barring or fine  Suspension
 De promotion  Dismissal

 GRIEVANCE HANDLING In every company there will be complaints, if the company is able to solve the problems during the initial stage a big problem can be avoided. In milma the complaints of the workers are solved during the initial stage itself. The problem will be handled by the shift engineer, if he is not able to handle it will be taken to the HR department and if he cannot handle it will be taken to the work committee for a discussion. The grievances have to be submitted in a written format. If the customers is have a complaint or grievance against the Federation or any of its units, they can KARUNYA SCHOOL OF MANAGEMENT Page 25

MILMA FEEDS contact the Public Grievance Committee headed by the Senior Manager (Quality Control), KCMMF Ltd, Milma Bhavan, Pattom, Thiruvananthapuram – 4 for redressal. If complaint is about bribes or financial irregularities they have to approach the Chief Vigilance Officer, KCMMF Ltd, Milma Bhavan, Pattom, and Thiruvananthapuram.

 STATUTORY & NON – STATUTORY WELFARE The milma feeds is providing statutory as well as non – statutory welfare to the workers. They are providing Basic Pay, Dearness Allowance and also Night allowance irrespective of the pay scale. Following are the benefits which are enjoyed by all the permanent workers of the company other than salary:

 500ML milk will be given to all the permanent employees, all the expenses are born by

the management. Coupons will be provided to the employees for getting there milk.

 Every year two pairs of shirt and pant will be provided to the employees of production

department. Stitching Allowance and Shoe Allowance is also given to them.

 Employees of production department will be given 9 mini towels and a 1 big towel for protecting their health

 Workers of production department will be given Uniform washing allowance of Rs.35 per month. Two Soaps will also be provided to the workers in every month.

 TRAINING CENTRE

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MILMA FEEDS The ideology of placing the instruments of progress in the hands of the farmers themselves, an orientation programme was started way back in 1984 and the training needs were met from Edappally in Ernakulum District. During the initial period NDDB came forward to help us in providing financial assistance as grant for meeting the training center expenses. Under North Kerala Dairy Project - Phase I, Swiss Development Co-operation provided Rs. 29 lakhs as grant for establishment of a full-fledged training center with hostel facility in the land adjacent to Trichur Dairy. The training center was established and started functioning from the new premises from 2.1.1992 onwards and it provides training courses for Presidents, Secretaries, Milk Testers, Milk Collectors of Anand Patern Co-operative Societies, Milma agents and Milma staffs.

 APPOINTMENT The employees are appointed through employment exachange.They are appointed by conducting an interview with reference to employment exchange. Permanent employees are appointed through test and interview. Around 73 temporary workers are appointed through employment exchange for a period ranging from 6 to 12 months.  RETIREMENT The minimum age of appointment of an employee is 18 years and the retirement age is 58 years.an employee can join the company as a junior worker and can attain the maximum grade as technical grade – 11 after various years of service.  TRADE UN IONS There are mainly four trade unions in the cattle plant. They are INTUC, CITU, AITUC and BMS.All the permanent workers of the plant are members of any one of the trade unions. It is to be noted that only permanent workers have trade unions while the temporary workers are not members of any trade unions. Also the loading and unloading workers have separate trade unions for them.  TIME OFFICE KARUNYA SCHOOL OF MANAGEMENT Page 27

MILMA FEEDS Time office is a confidential department and which has the following functions:  To maintain the attendance record of employees.  Maintaining leave records  Recording of leaves, shifts, late time etc.  To prepare daily attendance record of each employees  Recoding of employees arrival, departure etc.  To give a detailed report of the employee attendance to the finance department  ATTENDANCE MAINTENANCE The things considered in attendance maintenance are worked days, absent days, leaves taken, etc. The attendance maintenance is mainly done for salary preparation or calculations of salary. Every worker has an ID cards which they have to punch in the attendance recorder while reporting for duty as well as while going out after their duty. The workers coming late are noted and their attendance will be affected accordingly. The worker or employee coming late up to half an hour will lose half an hour attendance. Workers late beyond that half an hour will lose half day attendance. Workers are permitted to go early before their shift gets completed by filling an early departure form. The provision of late arrival and early departure is permissible only 3 times a month.

 SECURITY Security guards are appointed in the company wo plays an important role in protecting the factory from theft and misappropriation. Any person entering the factory should report at the security cabin and has to enter details there. After granting permission only they can enter.it is also applicable to the vehicles coming with raw materials and the vehicles going out with the KARUNYA SCHOOL OF MANAGEMENT Page 28

MILMA FEEDS finished products. The security personnel move in move out of the factory premises. Security personnel are not the regular employees of the company.

 HOLIDAYS The company allows 13 holidays in a calendar year. National holidays and festivals holidays are the two types of holidays in a company. National holidays include:

 Republic Day,  Independence Day,  Gandhi Jayanthi.  CANTEEN & RESTROOM Workers are provided with canteen serving nutritious food at reasonable rate. The canteen is run on contract basis for three years. Restroom facilities are also provided for employees having sufficient ventilation, lighting, fan, television and locker facility for each employees. A separate restroom is also provided for loading and unloading workers.

 MANPOWER PLANNING In the company during all the shifts a control room operator, pellet mill operator, boiler operator is compulsorily required. The employees work in rotating shifts. Manpower planning is done for a week by the Assistant Manager (Production & Maintenance).

 COLLECTIVE BARGAINING Under industrial dispute act 1947, collective bargaining is a process of joint decision making and basically represents a democratic way of life in industry.it is the prices of negotiation between KARUNYA SCHOOL OF MANAGEMENT Page 29

MILMA FEEDS forms and workers representatives for the purpose of establishing mutually agreeable conditions of employment.it is a technique adopted by two parties to reach an understanding acceptable to both through the process of discussion and negotiation. Thus collective bargaining:
 Attempts in achieving disciple in the industry.

 Is a collective process in which representatives of both the management and employees

participate.

 Is a continuous process which aims at establishing stable relationship between the parties

involved.

 Not only involves the bargaining agreement, but also involves the implementation of such an agreement.
 Is a flexible approach, as the parties involved have to adopt a flexible attitude towards

negotiations. CASE STUDY The unloading workers went on strike demanding that they should be made as the permanent employees of the company. During the strike they worked only till 12 noon and they did not worked after 12 noon. Their strike affected the working of the company. SOLUTION In order to stop this strike they have to conduct a meeting, with the District Labour Officer, Assistant Manager (Personal & Administration) and the representatives of the various Trade

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MILMA FEEDS Unions, which will help to come out with some successful solution for the problem. May be the first sitting may not be successful, so a number of sittings may be needed to solve the problem.

INTRODUCTION For every organization easy functioning there should be a good and efficient purchase department.in milma cattle feed plant materials are purchased in bulk qualtities.Raw materials are purchased from states like Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh, Punjab and Haryana. The major raw materials Rice-Bran is purchased from Punjab and materials such as Maize and Sunflower are purchased from Karnataka. Rice-Bran is directly purchased from producers. Most of the time around 2000 tons of raw materials are purchased. The company can reap the advantage of purchasing materials in bulk qualitities.Materials are purchased according to the KARUNYA SCHOOL OF MANAGEMENT Page 31

MILMA FEEDS specification provided by the nutrionist, who is the head of the quality control department. Some materials are available in the market only in certain period, after its season is over there are chances of short coming and reduction in quality. If some ingredients are costly, the company will substitute it by purchasing another material. This helps the company to maintain quality of finished products and its price. Purchasing is the main function carried out by the purchase department. Raw materials are purchased mainly from Tamil Nadu, Karnataka, Andhra Pradesh, Punjab and Uttar Pradesh. The order for purchase is produced according to the requirements from the stores. The head office of milma makes purchase order for their two cattle feed plants. The head office places order for three months.to avail the advantage of bulk transaction, the purchase dairy consumables and cattle feed are centralized. The purchase committee carries out this successfully. In these recent years milma have developed a successful and loyal vendor base. This ensures regular supply of quality raw materials at competitive process. Milma could manage cost of raw materials at 74% of the selling price of cattle feed, which is a new benchmark of completing the competiveness of purchase. The purchase department prepares registration notes and purchase orders. Payment to vendors is also done by the purchase department. The freight and unloading charges are given by the department and it is deducted from the payment to the vendor.

The natural raw materials used for the cattle feed production in the milma feeds, pattanakkad are:  DORB {De – Oiled Rice Bran}  Ground Nut Cake  Sunflower Cake  Wheat Flakes KARUNYA SCHOOL OF MANAGEMENT Page 32

MILMA FEEDS  Cotton Seed Cake  Maize

DEMAND
 Mustard  Jowar  Ginger  Tapioca  Molasses The chemical raw materials used for the cattle feed production in the milma feeds, Pattanakkad;  Mineral Mixtures  Calcium Powder  Vitamin  Powdered Salt Cake

ENQUIRY

PURCHASE PROCEDURE

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MILMA FEEDS

FINANCING
QUALITY OF TOOLS The peller machines used for manufacturing cattle feed are Cremanch machines from Netherlands. The machines giving and

(FINALIZING THE COSTS)

MACHINE AND

BUYING

system

for

buying

tools for the plant is by advertisements in dailies

and the one who quotes the lowest price will get the order. Importance is also given to quality. To coincide with the 10th Five Year Plan the firm has initiated action for long term planning. The objectives and goals are being set for the creation of required infrastructure facilities to handle the growing procurement in the coming years. The major trust areas for the federation are Cattle Feed, Milk Marketing Total Quality Management, Human Resources Development and Services. The strategy aims at defining the objectives of the organization; its major programmes and draws out the action plan to reach this objective. INTRODUCTION The production department is one of the major departments in the cattle feed plant. The assistant manager is in charge of the production department. The production department has an overall

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MILMA FEEDS control on the production function and maintenance of the mechanics.it regulates the input and the output with respect to the market demand. RAW MATERIALS In the cattle feed plant a bulk of natural as well as chemical raw materials is needed. The raw materials are brought from different parts of Andhra Pradesh, Gujarat, Tamil nadu and Karnataka. The government itself produces some cereals like rice; wheat etc.one of the ingredient salt is brought from the Kerala itself. The machines used in the plant are:  Grinding Machine  Mixing Machine  Air Compressor  Bagging Machine  Aspiration System  Electric Controller ANNUAL OUTPUT The output the milma cattle plant is producing now is in the form of mash (powder) and in the pellet form. At the beginning the factory was able to produce only 100 metric tons per day. But because of high competition they have started producing 300 metric tons per day. Because of this the annual production is now about 70,000 metric tons.

STRUCTURE OF PRODUCTION DEPARTMENT

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MILMA FEEDS

ASSISTANT MANAGER (PRODUCTION & MAINTENANCE)

DEPUTY ENGINEER (PRODUCTION & MAINTENANCE)

ASSISTANT MANAGER (PRODUCTION & MAINTENANCE)

TECHICIAN

SKILLED WORKERS

WORKERS

PRODUCTION PROCESS

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MILMA FEEDS The milma feeds is following a highly mechanized and systematic working process using the most modern machinery and superior man power. All actual production is carried out by heavy duty computer controlled machines.

SUPPLY OF RAW MATERIALS

The important raw materials used in the production of cattle feed are De – Oiled Rice Barn, Sunflower Cake, Mustard Cake, Groundnut Cake , Jowar , Wheat Flakes, Wheat Bran, Maize, Cotton Seed Cake, Rice Polish, Molasses, Ginger, Tapioca, Mineral Mixtures, Pepper, Salt, Coffee Husk, etc.

DUMPING

The production process starts with the dumping of raw materials in to the conveyor belt under the floor of the godown.The raw materials are dumped into the conveyor through the grills. The materials are dumped into the conveyors are automatically transported into the storage bins. There are 18 storage bins for storing the different types of raw materials.

BATCHING

From the storage bins the raw materials will come to the vibro screen for purification, where unwanted particles that come accidentally to the raw materials are removed for ensuring the health of the animals that consume the cattle feed produced by them. These unwanted particles include stone pieces, wood pieces etc.

MOLASSES MIXING

After purification, the raw materials will be transferred to the molasses mixer through elevator for mixing molasses .The required quantity will be added to the raw materials .The molasses is used as flavoring agent in the Cattle feed. The molasses is the one of the major component in the cattle feed. KARUNYA SCHOOL OF MANAGEMENT Page 37

MILMA FEEDS

PELLET FEED PRODUCTION

Production of cattle feed in the pellet form requires additional process. During the olden days in this plant there was no provision for pellet production. Recently they installed the pellet mill for producing the cattle feeds in pellet format. There was more demand for cattle feed in pellet form in the market because of its high durability, so they installed the pellet mill to scoop the market demand, so that they can earn more profit. In this process the mash is converted into pellet form, for that purpose the mash in the molasses mixture is transferred into pellet mills through feeder conditioner. In the pellet mill, the cattle feed in mash form undergo different process such as steaming and boiling etc., finally we will get in the pellet form feeds.

BAGGING

There are two bagging machines, which can be worked simultaneously. The finished products collected in the bins will come through the opening of the bigger machine. When 50 kg of feed gets filled in the bag, it automatically gets detached and falls into the conveyor just below the machine. The filled bag moves through the conveyor while it is going through the conveyor the mouth of the bag will be passed through the sewing machine after placing the how to use the card in it, which will be helpful to the farmers who buy the product.

HANDLING

The stitched bag will go through the conveyor to the godowns, where finished products are stored. From the conveyor the workers will get it can they will place it in the proper place. The plant is having 3 shifts. There are provisions for producing mash and pellet in a single shift. In the bagging section there are eight workers in a shift and in the handling section there are ten workers. INFRASTRUCTURE OF THE COMPANY

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MILMA FEEDS  Two Silos of 600 Metric Ton Capacity each.  Three Molasses tank of 650 Kilo Litre each.  Two Boilers of 2 Ton per hour capacity  Two diesel Generator Sets of 500 and 250 KW/Hr.  Two bagging machines having a capacity of 240 and 450 bags per Hour.  Two pellet cooler having cooling capacity of 10 Ton per hour  Ten porches for storing Raw materials  Two salt Conveyor for moving the finished goods.  Three Compressors.

INTRODUCTION The quality control wing of the federation renders technical and legal assistance to primary dairy Co - operation and regional milk unions. Quality of outgoing milk has been maintained with the KARUNYA SCHOOL OF MANAGEMENT Page 39

MILMA FEEDS standards.in addition to the testing of milk and milk products at the quality control laboratories attached to the dairies. Samples of milk and ghee are also being tested at the government analytical laboratories. Reports received from the government analytical laboratories have indicated satisfactory quality level in all samples.

The quality control department deals with:

 Conduction and Inspection test of materials and product.  Advising ways and means for improving the quality of the product.  Determining tolerance that is in range with in which deviation in actual quality from standards will be acceptable.

In the cattle feed plant, the quality control section is very effective and strictly carried out by a proper investigation of products before distribution and before production. The quality tests are done based on standards lay down by the bureau of Indian standards and tests. The head of the department make an ideal formula for meeting the requirements of animal with minimum loss to the organization. He turns controls and monitors the activities of the subordinate in the department. The post is occupied by an expert person intended in spelling up international standards and quality.

STRUCTURE OF QUALITY CONTROL DEPARTMENT

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MILMA FEEDS

ASSISTANT MANAGER (QUALITY CONTROL)

ANIMAL NUTRITION OFFICER (ANO)

CHEMIST

LAB TECHNICIAN

LAB ASSISTANT

TESTING & EQUIPMENT INVOLVED KARUNYA SCHOOL OF MANAGEMENT Page 41

MILMA FEEDS

 MOISURE ANALYZER The conventional method of a moisture analyzer using air oven which required 12 hours foe getting the result is been replaced by an advanced infrared instant moisture analyzer with which the result can be obtained within ten to fifteen minutes.  CRUDE PROTEIN ANALYZER The latest and the most advanced KJELTEC analyzer capable of delivering 24 to 36 analyses per day replaces the conventional method employed, which consumes more time and labours.  PERCENATGE OF SAND & SILICA ANALYSIS This analysis is conducted using ‘muffle fumace’ at pattanakkad unit.it is one of the advanced laboratories equipment at its time in Kerala. On the basis of contends cattle feed can be classified into two:  TYPE 1  TYPE 11 The contents of the two types are shown below:

QUALITY TYPE 1 TYPE 11

PROTEIN (MIN) 22 % 20 %

FAT 3% 2.5 %

FIBRE 8% 1%

SAND SILICA (MAN) 3% 4%

The nutritionist who controls the quality of cattle feed heads the quality control department in the company.an assistant quality control manager and food chemist subordinates him. Normally every week the nutrionist has to implement the formula of cattle feed which is in turn governed KARUNYA SCHOOL OF MANAGEMENT Page 42

MILMA FEEDS by the availability of the raw materials or depending on the seasonal requirements. The main task of this department is to completely analyze the raw materials. After producing, the products are taken in to the quality control department. The quality control lab is operating for this purpose. Also the raw materials are taken for quality checking. The lab has certain parameters. Based on this they categorize the products. Milma cattle feed plant pattanakkad got an award from the Kerala Agricultural University for their best quality products. The quality control department is regulated by the standard fixed by the ISI or bureau of Indian standards. The bureau of Indian standards has stipulated the contents that a 50 kg bag of cattle feed should contain. Milma cattle feed plant; pattanakkad mostly produces Type 11 Cattle Feed. The quality control department of the company is headed by an animal nutrition officer who is assisted by a chemist and a lab assistant in discharging his function.in cattle feed plant, the quality control is very effective and carries out proper investigation of products before distribution.Mainatining quality tests are done based on the standards laid down by the bureau of Indian standards. Quality of the product depends on the interaction of materials, men, machine and manufacturing processes. In the cattle feed plant, the raw materials are selected first then only it goes to the production department. Techniques of quality control are of two types:

 Physical Verification.  Chemical Verification.

The physical verification includes visual observation only. But in chemical verification, the qualities of the raw materials as well as finished goods are being done using various chemical analyses.

INTRODUCTION

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MILMA FEEDS The purchasing section prepares the purchasing order or the raw materials only ater proper checking. The store officer is in charge of the store section. He should verify the material received with the report. He should send the copy of materials received to the accounts department for verification. There are two stores under the store section:

 General Store or Raw Material Store Section.  Engineering Store Section.

 GENERAL STORE SECTION (RAW MATERIAL STORE SECTION) General store section deals with the preparing and controlling of raw materials and finished products. The raw materials brought into the plant are weighted first in the general store using Weight Bridge later put into the production processes.

 ENGINEERING STORE SECTION Engineering store section deals with keeping of spare parts of machines. The engineering stores are in charge of supply of engineering or machine spare parts as required by the production departmnets.The factory machines,tools,spare parts or any equipment if found to be replaced must be done by the engineering section as per instruction from the production department.

MAIN FUNCTIONS  Receive stock arrived as per purchase order and assure its quality.

 Keep the stock safely and record the Quantity.

 Provide the stock as and when required by the production unit. KARUNYA SCHOOL OF MANAGEMENT Page 44

MILMA FEEDS

 Inform the purchase department in case of stock deficiency. The store section establishes adequate control over the raw materials for production, packing materials, finished products and old gunny bags at all levels of storage and delivery. When a consignment of raw materials arrives before weight, the samples from each truck will be taken for analysis in the lab.After the results, the load may be accepted or rejected. After that the accepted truck can be weighted. The senior assistant (Weigh Bridge) scrutinizes the party invoice and enters the details in the computer. Actual weight will be taken and the acknowledged quantity will be recorded in the computer.Immeditely weighing slip will be recorded in the computer. Immediately weighing slip will be prepared in triplicate.one will be issued to the cashier for payment of unloading charges at the end of the day and one will be retained in the section. A specialized software known as Milma Integrated Information System is used in the store which gives details about the stock availability of various raw materials in the various godowns of the company. After a consignment is accepted the store keeper contacts the security cabin informing them to send unloading workers into the godown for unloading the raw materials. The unloading workers are then given instruction as to stack the raw materials at the designated locations.

STORES STRUCTURE

ASSISTANT STORES OFFICER

DEPARTMENT

SENIOR ASSISTANT

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MILMA FEEDS

INTRODUCTION In the words of William J. Stanton, “Marketing is a total system of interacting business activities designed to plan, price, promote and distribute want satisfying goods and services to present potential customers”. The marketing department is headed by the marketing manager and under him two assistant mangers.one for sales and dispatch and the other for customer service and sales promotion. Here the first process is identifying the consumer need, after identifying the consumer need it produces goods according to the needs of the consumer. For this the product should be neatly designed. Sales forecasting, sales planning, customer and sales analysis are done with the help of computer systems. The transaction are sales order, promotions order etc. done with the help of systems. The marketing operational control activities include the timing and training of the sales force, scheduling of sales and promotion efforts. The milma cattle feed plant pattanakkad has a special department for marketing their products.as it faces stiff competition from other sectors, about 20% of the cattle feed are marketed through private dealers and other agencies.at the same time cattle feeds are distributed through APCOS at reasonable rate. Extremely good quality products are the trademark of milma. Mainly it helps to boost the market demand for their products. Advertising campaigns also helps to keep the product demand. Milma could market the entire the fed manufactured even during recession in the secor.it could be achieved because of the high quality standards of milma feed and it is a matter of pride that we have completed successfully with the established ourselves in the market and played the role of the trendsetter. Balanced cattle feed is inputs provided to the KARUNYA SCHOOL OF MANAGEMENT Page 46

STORES ATTENDER

one of the major dairy farmers in the

MILMA FEEDS state by the federation. The 300 MTPD capacity plant at Pattanakkad is catering to the dairy farmers under the TRCMPU and part of ERCMPU.in addition to it feed is supplied to special livestock breeding programme of the government of Kerala, government farms, and local bodies under their decentralized planning. MARKETING HIGHLIGHTS  Most economical price of cattle feed in the market.  Good quality cattle feed  The distribution channel is limited.

FEATURES  The company is owned by the farmers through primary village societies.

 More than 90%

MARKETING MANAGER

of the output of the to the farmers

plant is supplied

through societies, i.e. owners and the customers are same for the company.

STRUCTURE OF MARKETING DEPARTMENT

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MILMA FEEDS

FUNCTIONS Following are the main functions of marketing:
• • •

Finding markets for the product. Marketing the products. Conducting the sales promotion activities.

In CFP, the marketing department target mainly increased the demand and consumption of cattle feed and this allied products by adopting measures. Customers of CFP products are not confined to Kerala but other states like TamilNadu, Bengal etc.; directly come to the factory and get required quantity. Trade and sale easy for milma cattle feed factory as there is only a single product; ie.cattle feed.

MARKETING ACTIVITIES

SENIOR ASSISTANT
  Sales Promotion

JUNIOR ASSISTANT

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MILMA FEEDS American Marketing Association defines sales promotion as “Those marketing activities other than personal selling, advertising and publicity that stimulate consumer purchasing and dealer effectiveness such as display shows, expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine”. Sales promotion activates are mainly intended to bring about effective transfer in ownership and in moving goods from the manufactures to the consumer.

 ADVERTISING American Marketing Association, Chicago, defines advertising as “Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor”. Advertising is meant to pass on information to the prospective customers.it is one of the powerful elements in the promotional mix advertisements have a great part in increasing the demand for a product in the mind of the peole.The objective of advertising is effective communication between producers and consumers. The milma feeds also publish meaningful advertisements, which help to find out demand for their products in the market. The ultimate purpose of advertising is to increase awareness. Advertisement through electronic media and dailies are very essential to improve the marketing of the organization. The cattle feed plant advertises in the following ways: 1. Publication of Notices: Time to time, notices are published to proclaim any new intervention of the company. 2. Advertisement in Newspapers:

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MILMA FEEDS The newspaper is an important advertisement media, which helps to inform the people about the quality of product. 3. Wall Writings: They also serve as media to expose the quality of milma products.

 MARKET SHARE

The market net turn over as per year is about 12 crore rupees. If the company is able to execute the present orders as far as possible, it can hope to get about 75% of the total markets that is the company to be computerized and must have more foreign collaboration on skills, especially technical. The company is trying to concentrate on this aim.

 PRICING According to Clark and Clark, “The price of an article or service is its market value expressed in terms of money”. Pricing is a key element in the marketing mix. The price of the product should be related to the achievement of marketing goals. Board of directors fixes the selling price of the product. Considering the cost of raw materials and labour does this. The pricing strategy followed by cattle feed pant is Cost Plus Margin.

 DISPATCH SECTION The marketing of milma cattle feeds is done through different ways.in the plant, there is a marketing section headed by the assistant manager, marketing. Demand for cattle feed received from societies, dealers etc, will be processed in the marketing section. The transaction of cattle feed plant is done on contract basis. There is a contractor for transportation and he is paid as per metric ton or on kilometric basis as per the agreement executed in this regard.

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MILMA FEEDS  CHANNELS OF DISTRIBUTION According to Philip kotler and Kevin Lane Keller, “Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption”. The cattle feed wholesale marketing is mainly done in three ways: o Through Co-operative Societies known as APCOS o Through Dealers o The Government Farms

1. Through Co-operative Societies known as APCOS As APCOS is the basic level of the three-tier system, societies get cattle feed at a cheaper rate.

2. Through Dealers The customers can buy the cattle feed through various retailers fixed by the marketing department.

3. The Government Farms The animal husbandry department runs many cattle feed farms. The milma cattle feeds are supplied to these farms. Most of the cattle feeds they buy from the factory are used in the farm itself.

 COMPETITORS The main competitors of milma feeds in Kerala are: KARUNYA SCHOOL OF MANAGEMENT Page 51

MILMA FEEDS • • • • K.S. Cattle Feed Sunandhini Cattle Feed

CATTLE FEED PLANT
Nandini Kerala Cattle Feed Cattle Feed

APCOS

DEALERS

GOVT.FARM

STRUCTURE OF CHANNEL OF DISTRIBUTION

RETAILERS

CUSTOMERS

CUSTOMERS

CUSTOMERS

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MILMA FEEDS

INTRODUCTION Finance is the backbone of every organization. All kinds of business directly or indirectly involve the acquisition and use of funds. Financial management is the financial activity, which is concerned with planning and controlling the firm’s financial financials. The finance department deals with all kinds of accounts related personnel, purchases, stores, marketing, work contract, costing, budgeting, central excise etc. All financial transactions of the company are dealt by CANARA BANK which has a branch in the company premises. The finance department is headed by the finance manager.

IMPORTANCE OF FINANCE Finance refers to the money or funds available to a firm. A business needs funds at every stage to start a business, to operate it and to expand or modernize its operations. Finance is required to bring a business in to existence, to keep it alive and to see it growing.to survive in a competitive world, every business has to manage scarce funds in a minimum costs or tries to invest funds in various assets with a view to maximize the return on shareholder investments. More important it tries to generate sufficient profit to fiancé expression and modernization of the enterprise and secure stable growth. This management of finance is essential for the source of business.

SOURCES OF FINANCE Milma cattle feed plant gets finance from: KARUNYA SCHOOL OF MANAGEMENT Page 53

MILMA FEEDS    Canara bank, State Bank of Travancore, District Co-operative bank.

The senior manager signs all the cheques.

ACCOUNTING STATEMENTS & ACCOUNTS There are different types of accounting statements and accounts prepared by this department. They are: • •

Trading & Profit and Loss Account Bank Reconciliation Statement Preparation of Budgets.

Income tax assessment is done at the end of every financial year.

AUDIT Three types of audit are done in this firm. They are: • • • Internal Audit Statutory Audit Tax Audit

FINANCE MANGER KARUNYA SCHOOL OF MANAGEMENT Page 54

MILMA FEEDS The finance manager occupies an important and central position in the overall management of the organization. He is in charge of the funds of the enterprise and their investemnts.He decides the amount of capitalization, capital structure and investment pattern.

DUTIES & FUNCTIONS  Formulation of Financial Objectives.  To monitor all the financial transaction of the firm.  Deciding the amount of capitalization and working capital management.  Determining the capitalization.
 Deciding the source of funds to be used and collection of funds from selecting source.

 Distribution of profits.  To effect prompt payment of loans or debts availed by the firm
 To arrange preparation of Trial Balance, Profit and Loss Account and Balance Sheet.

 To scrutinize vouchers for payment.

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MILMA FEEDS

PAID UP SHARE CAPITAL
The paid up share capital of the federation stood at Rs.150.34 lakhs as on 31.03.2003 against the authorized share capital of Rs.500/- Lakhs of the 15034 shares as on date, TRCMPU, ERCMPU and MRCMPU hold 6734,3067 and 5233 shares respectively. The capital mix of the federation contain heavy dose of long term debt and to even out the financial risk it has to be balanced by inducting sufficient equity share capital.

CAPITAL INVESTMENT The milma cattle feed plant; Pattanakkad was started with an initial investment of about three crores rupees. The firm collects this amount through a loan from National Dairy Development Board (NDDB).again in 2003, another loan of three crores was taken from (NDDB) for further modernization of the plant. A bulk of this amount was used for pettlization of the cattle feed, before it was only made in the form of mash (power form).out of the amount taken from NDDB,30% falls under the category of subsidy and is not to be paid. Remaining 70% is to be paid with interest.

FINANCIAL RESULTS Strongest austerity measures and value engineering has enabled the company to cut costs in various heads. The company has been able to contain and restrict the cost of various fronts like:

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MILMA FEEDS
 Employee Cost,  Manufacturing

Expenses,

FINANCE MANAGER
 Administrative

Costs, etc.

ASSISTANT FINANCE STRUCTURE OF DEPARTMENT MANAGER FINANCE

ACCOUNTS OFFICER

JUNIOR SUPERINTENDENT

SENIOR ASSISTANT STENOGRAPHER

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MILMA FEEDS

SWOT ANALYSIS
STRENGTHS  Reasonably priced products.
 Cordial Industrial Relations.  Centralization of Authority.  Efficient and Qualified Managers.  Well – Established Hierarchical Positions.  Experienced and Well Trained Work Force.

 Fully Updated Management Information System.  The premier Organization in Kerala Produce a Variety of High Quality Cattle Feed.

JUNIOR ASSISTANT

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WEAKNESS  Improper planning.  Centralized decision.  Inefficient advertisement.
 Demand is more than supply.

 Lack of adequate work force.  Average production is very low.  Time delay in availability of funds.  Bad attitude of workers towards training programs.  Recruitment and selection is done through P.S.C. The power is not in the hands of H.R department.

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OPPURTUNITY • After the boom in cattle breeding with the coming of Indo-Swiss and related projects quality feeds are required by the new breeds, since the organization is a premier in this sector it has unlimited opportunity.

Kerala, is known as the god’s own country is also known as the land of coconuts thus the abundance of coconut cakes gives – the organization and opportunity to use those cakes for the manufacture of cattle feed at a cheaper cost.

THREAT  Mo lasses is an essential ingredient for the manufacture of certain special variety of cattle feed. The procurement of molasses in Kerala is completely under the regulation of government of Kerala the procurement process is time lagging leading to a delay in the required level of molasses.

 Procurement of raw material from other states creates addition in the total cost (inclusion

of transportation cost and freight charges).there costs are excluded from the total costs by the cattle feed manufacturing unit in the states from where milma is procuring its raw materials.an increase in total cost would lead to an increase in the selling prices and a reduction in the profit margin. KARUNYA SCHOOL OF MANAGEMENT Page 60

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FINDINGS  The products are reasonably priced.  Heavy Work Load is seen in all departments.  Dedicated employees are seen in all departments.  It has a market where demand is greater than supply.  The decision making is centralized at the head office.  The company doesn’t have any exporting programme.  The recruitment of the company is done through P.S.C.  The firm is maintaining its high goodwill and reputation.  Best quality is the unique selling proportion of their products.  The company distributes their products through their own network.
 Company maintains a perfect support between the employer and employee.

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MILMA FEEDS  The study shows the co-existence of public sector and private sector undertaking.

 In the early stage milma cattle feeds in the market leader but now they are in the second position.

 The plant offers high quality cattle feed with preferable appreciation compared to its competitors.

 The milma federation doesn’t that much believes in the effectiveness of the advertisement programme.

 The milma CEP manipulates the activities of 3 trade unions by providing discriminatory power to them.

 They are providing good quality products to the consumer and consumer preference is high for milma cattle feeds.

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SUGGESTIONS  Sales promotion activities should be widened.  Advertisements campaign should be more powerful.  Make provision to further increase the average production.  Make provisions for selling the products in other states too.  Much research has to be done to increase the quality of the products.  The worker should be encouraged to participate in the training programmes.  The attractiveness of labelling should be more effective and be given a new touch.  The company should do job analysis and provide right kind of job to right person. KARUNYA SCHOOL OF MANAGEMENT Page 63

MILMA FEEDS  Make stronger control over loading and unloading worker who often create problems.  The company should take necessary steps for the improvement of recreation facilities.

 The organization should implement effective promotional policies to upgrade the work.

 The management should provide incentives to the workers according to their performance.

 It is suggested that the system of job rotation should be done so that to avoid boredom in their work.

 The milma growing progressively therefore there was no need for selling the shares of public sector undertakings.

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MILMA FEEDS  Procurement of raw materials from south India alone would help in reducing the transportation cost and freight charges.

 The company should focus also on the consumer need. Establish a better corporate image through co-operation and hard work.

CONCLUSION Cattle feed plant was established 28th February 1985,since the company has been maintaining its very goodwill and reputation.CFP plays an important role in the structure of Kerala Cooperative Milk Marketing Federation Limited, (KCMMF). The industrial visit and the study conducted for the preparation of this project immensely helped me to make out the practical significance of the theories taught in the classroom for different management areas. Milma CF has a good named and so there is no need of much sincere and no –malpractices are going on there.it was set as a co-operative sector that has a bright future. It has provided an opportunity to have an insight into the working of this undertaking. The study, as a whole has revealed that this plant set up under co-operative sector is growing progressively and that it has a bright future.

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MILMA FEEDS The finding of the study emphasizes and justifies the co-existence of public sector and private sector undertakings in our national economy and the views of our national leader like Jawaharlal Nehru. The planners and policy makers of the modern India should recognize the fact that it is unnecessary and unwarranted to sell the shares of public sector undertakings which are managed efficiently and which render service to the society. The organisational study of cattle feed plant; pattanakkad has been beneficial for me I all apects.it helps to familiarize with the practical side of the organization. It provides me an overall idea different streams management mainly personnel, marketing, finance, operations, etc. of the organization.

BIBLIOGRAPHY
 www.milma.org

 Milma Annual Report 2005 – 2006.

 Kerala Co-operative Milk Marketing Federation “Bye-Laws”.

 Mathew Emmanuel, “Marketing Management”, Current Books Publications, 1999.

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 Dr.K.G.C.Nair, “Systematic Approach to Business Studies”, Chand Publications, 1990.

 Arora D, “Office Organization and Management”, Vikas Publication, 1991.

 Gupta C.B, “Office Organization and Management”, Sultan Chand Educational Publications, 1990.

 Tripathi P.Caw Reddy P.N, “Principles of Management”, Tata MC Graw Hill Publishing

Company, 1996.

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