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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION
Organizational study is the systematic and careful application of knowledge about how
people – as individuals and as groups – act within organization. An organizational study was
conducted in Milma, Pathanamthitta Dairy to know the real functioning of an organization.

Organizing refers to the process of bringing together physical, financial and human
resources and establishing productive relations among them for the achievement of specific
goals. It is concerned with building up a stable framework or structure of various interrelated
parts of an enterprise, each part having its own function and being centrally regulated. The aim
of organizing is to enable people to relate to each other and to work together for a common

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

purpose. The organized group of people in a collective sense is known as organization. An


organization structure shows classification of the departments and its employee hierarchy. This
also fixes their authority and type of communication with superior, subordinates and peers. An
organization structure also shows the span of control. It can be narrow or a wide one.

Kerala Co-operative Milk Marketing Federation (KCMMF) popularly called MILMA


was established in April 1980 with its Head Office at Trivandrum for the successful
implementation of the Operation Flood. KCMMF is the top management controlling all the milk
dairies namely TRCMPU (Trivandrum Regional Co-operative Milk Producers Union), ERCMU
(Ernakulum Regional Co-operative Milk Producers Union) and MRCMPU (Malabar Regional
Co-operative Milk Producers Union). The company was established on 22 nd April 2010. Earlier
there was a Milma dairy plant in Kumbazha, Pathanamthitta, which had been started in 2001, but
it was shifted to Mammodu in Pathanamthitta and started its operations. The new Milma has a
processing capacity of 60,000 liters per day

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 good quality by the consumers they are successful in capturing 45% of the market share.

1.2 Scope of the study


The study enables to know the overall functioning of Pathanamthitta Dairy and various
departments. The study gives details about Milk procurement and production in Pathanamthitta
Dairy and marketing of Milk products in Kerala.

 The day to day activities of the organization


 The company and its incorporations
 To know the functions of all departments.
 The organization and departmental structures
 An understanding about the products and services provided by the organization

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

1.3Significance of the study


There are many factors, which lead to the success of an organization. Hence the present
study was mainly focused on the functioning of each department of the organization giving
emphasize to their function.

The study focused on the overall performance of the company, might be helpful for the
management to identify the strengths, weakness, opportunities and threats of the company and
also in assessing the growth potential of the company and in framing future policies.

1.4 Objectives of the study

The organizational study provides an excellent opportunity for experiencing and understanding
an organization in its full range. It enables the students to find out the correlation between the
theory and the real business situation.
 To study the organizational structure of MILMA Dairy.
 To understand the market and familiarize with the products.
 To get fairly acquainted with professional work culture.
 To understand the industrial profile.
 To identify the behavioral pattern and satisfaction level of consumers.
 To find out various managerial process handled by MILMA.
 To conduct SWOT analysis.
 To study the various functions of each department.

1.5 Methodology
The study is of descriptive type undertaken by personal visits to the firm. The data were
collected from primary as well as secondary sources. The method of observation was adopted to
study the functional processes, plant layout, interaction of the employees co-ordination of
different departments, communication system etc.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

Primary data:

The sources of primary data were;


 Discussion with Manager (Dairy)
 Direct interviews with the heads of different departments.
 Interaction with workers of the company

Secondary data:

The sources of secondary data were;


 Review of earlier studies published in books and journals,
 Annual accounts and annual reports of the company  Official websites of
the company

The data collected from company’s departmental manual added key information to this report
and helped me to understand carried by each department in detail.

1.6 Reference period


Secondary data for the study covers a period of five years from 2007-08 to 2015-16

1.7 Limitation of the study


 The time is critical limitation factor in this study.
 Most of the data required are kept in the head office, so not easily available.
 The unwillingness to disclose all the information from certain departments.
 Busy work schedule of the employees.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

CHAPTER 2
INDUSTRY PROFILE

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

2. INDUSTRY PROFILE

2.1 MILK INDUSTRY

The dairy industry has a long history of environmental stewardship .Dairy farming
has been part of agriculture for thousands of years, but historically, it was usually done on a
small scale on mixed farms. Down to the late 17 th century cattle were valued primarily for their
milk than their beef producing qualities. From earliest times, milk and dairy products had
occupied a prominent place in the diet of the people.

Dairy Fanning is a class of agricultural, or an animal husbandry, enterprise for long


term production of milk, usually from dairy cows, which may be processed on-site or transported
to a dairy factory for processing and eventual retail sale. Specialist scale dairy farming is only
viable where either a large amount of milk is required for production of more durable dairy
products such as cheese, or there is a substantial market of people with cash to buy milk, but no
cows of their own.

Centralize dairy farming as we understand it primarily developed around villages and


cities. Near the town, formers could make some extra money on the side by having additional
animals and selling the milk in town. The dairy farmers would fill barrels with milk in the
morning and bring it the mark on a wagon.

The technical challenges facing world dairying over the next 25 years are different
from, but not any more difficult than those experienced over the last century. Many of the new
technical demands will continued to be imposed by consumer expectation of a good eating
experience of healthy food without risk. Particular challenges arise from the intersection of
genomic studies with nutrition.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

Technical challenges will also arise from the evolution of technologies, both existing
and new, to make maximum use of the minor components of milk, and to improve efficiency in
the manufacture of traditional dairy products. Increasing use will be made of quantitative
riskanalysis tools. Dwindling supplies of fresh and portable water will be specific challenge in
many parts of the world. The challenges will be different in each region, with nations with
emerging dairy industries requiring different and indigenous solutions.

Milk production

 India's milk production increased from 21.2 million MT in 1998 to 88.1 million MT in 2003
2004.

 India is the largest producer of the milk in the world (replacing USA)

 Per capita availability of milk presently is 231 gram/day, up from 112 gram/day is
1968-1969

 India's 3.8 recent annual growth of milk production surpasses the 2 percentage growth in
population; the net increase in availability in around 2% in around per year

 State co-operatives and privately owned Indian company dominate the liquid milk sector

 India has around 70000 village dairy co-operatives, 22 cooperatives dairy federations at state
level and 170 milk producer union at district level

. The Milk and milk based industries play a very important role in the world. Internationalization
remains a key focus for almost all of the world’s leading dairy farms. All the world’s largest
dairy farms operate in more than one country and some of them are truly international with the
activities in every part of the world. The availability and distribution of milk and milk products,
in the modern world is blend of the centuries old knowledge of traditional milk products with the
application of modern science and technology. Dairy is a place where handling of milk and milk
products done a dairy has long. The food industry in India has been showing a steady growth rate
over the last several years. The main phenomenon is the large disposable incomes. The food
sectors have been facing a marked change in the consumption pattern especially in terms of food.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

Increasing the income always accompanied by change in the food basket says an ICRA report
which analysis food expenditure patterns over the last three decades in India.

The report observed that the proportionate expenditure on cereals, pulses, edible oils, salt and
spices declines as the house hold climb the expenditure classes in urban India while the opposite
happens in the case of milk products, meat, egg, fish and beverages. Among the processed food
products, the milk product needs special mention. Retail shelves now offer multiple choices in
the processed cheese segment such as Le Bon of Dabon International launching cow, Britannia
and Amul. India is in fact one of the largest milk producers in the world. In 2004 world milk
production was estimated to be 14394 million ton and India contributes about 15% to this.

Today India is the “oyster of the global dairy”. It offers opportunity to the entrepreneur’s
worldwide who wishes to capitalize one of the world’s largest and fastest growing markets for
milk and milk products. The Indian dairy industry is rapidly growing, trying to pace with the
galloping process around the world.

2.1.1 WORLD SCENARIO

The International Dairy Federation, with its headquarters in 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 was
India, where large 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 this pasteurized milk is provided free to children in the larger
cities through UNICEF.

The first cooperative artificial breeding association was organized in Denmark in 1936, there are
now many such association which helps the dairy industries. After 1950, dairy industries faced a
wide range of development throughout the world. Commercial dairy farming using automated
milking equipment produce the vast majority of milk in most developed countries. The

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

international dairy trade is dominated by four players - New Zealand, Australia and USA - which
together account for 85% of all exports.

In USA 70% of the dairy industry is co-operative dairy programmes are subject to more
Government participation or regulation than most other domestic agricultural industries in the
USA. There are also Federal Milk Marketing Orders and movement barriers in the USA for
“orderly marketing control, which is associated with stabilising fluid milk prices, providing
secure and dependable markets for individual dairy farmers, primarily for the fluid market and
improving the balance of market power between farmers and handlers.

In the United Kingdom, all the milk produced by farmers is procured by the cooperatives.
Private dairies are required to buy their milk requirement from cooperatives. New Zealand has no
private sector dairy plants. 90% of dairies in the erstwhile West Germany and 100% in Denmark,
Netherlands and Sweden are in the cooperative sector.

The below table shows world cow's milk production in 2013 stood at 956 million tonnes,
with the top ten producing countries accounting for 56.6% of production. The USA is the largest
cow's milk producer in the world accounting for 14.6% of world production, producing nearly 91
million tonnes in 2013, an increase of 3.8% when compared to 2012.

India is the second largest cow's milk producer, accounting for 8.7% of world
production and producing 60 million tonnes in 2013. The UK is the 10th largest producer in the
world producing nearly 14 million tonnes in 2013 and accounting for 2.2% of world cow's milk
production.

In 2011, the leading 24 dairy companies in the world have generated a turnover of more 3 billion
US dollars. The 24 leaders of dairy industry come from 14 countries in 4 continents. Most dairy
companies experienced growth in 2011 due to the strong increase in dairy product prices.
Mergers and acquisitions made companies to grow faster and become the market leaders.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

2.1.2 INDIAN SCENARIO

Indian Dairy Sector has come a long way from the post-independence era of acute milk shortage
and depended on foreign aid in the form of milk powder to meet the growing milk demanded.
India’s milk production in 1950-51 was as low as million tonnes. Today India has emerged as the
highest milk producer in the entire globe. India is well known as the 'Oyster' of the global dairy
industry, with opportunities galore for the entrepreneurs globally. It might be dream for any
nation in the world to capitalize on the largest and fastest growing milk and milk products
market. The dairy industry in India has been witnessing rapid growth with liberalization. The
economy provides good opportunities for MNCs and foreign investors to release the full
potential of this industry. The main objective of the Indian Dairy Industry is to manage the
national resources in a manner to enhance milk production and upgrade milk processing using
innovative technologies.

India ranks first in the world in milk production, which has gone up from 53.9 million tonnes in
1990- 1991 to 140.6 million tonnes in 2013-14 on a normal monsoon, increased demand for
dairy products and rising consumer income. The per capita availability of milk has also increased
from 176 grams per day in 1990’s to 320 grams per day in 2013-14. This is comparable with the
world per capita availability of milk at 291.76 grams per day for 2013. This represents sustained
growth in the availability of milk and milk products for the growing population of the country,
apart from being an important secondary source of income for rural families. Of the milk
produced, 40 per cent is used or consumed on-farm, and 60 per cent is sold. Industry sources
report that of milk sold 70 per cent goes through the unorganised sector and only 30 per cent via
the organised sector.

ANAND PATTERN

Amul, an Indian dairy cooperative, was started in Anand in the state of Gujarat, India. It
was formed in 1946, is a dairy cooperative in India. It is a brand managed by a cooperative body,
the Gujarat Cooperative Milk Federation Ltd. (GCMMF), which is today jointly owns 3.03
million milk producers in Gujarat. Amul's success had huge impact in the creation of same

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

structure of milk producers in other districts of Gujarat initially. Amul's experience was driving
force in project planning and execution. The 'Anand Pattern' was followed in Kaira district,
Mehsana, Sabarkantha, Banaskantha, Baroda and Surat districts. As even before the setting up of
the Dairy Board of India, farmers and their leaders carried out various tests of the hypotheses that
explained Amul's success. All through these districts, milk producers and their leaders experience
significant commonalties and found easy, effortless ways to adapt Amul's game plan to their
respective areas.

The Anand Pattern is an integrated cooperative structure that procures, processes and markets
produce. Supported by professional management, produces decide their own business policies,
adopt modern production and marketing techniques and marketing techniques and receive
services that they can individually neither afford nor manage. The Anand Pattern was succeeds
because it involves people in their own development through cooperatives where professionals
are accountable to leader elected by farmers. Anand pattern cooperative have progressively
linked producers directly with consumers.

Three Tire Structure

1. Village Society: An Anand Pattern village dairy cooperative society (DCS) is formed by
milk producers. Any producer can become a DCS member by buying a share and
committing to sell milk only to the society. Each DCS has a milk collection centre where
members take milk every day. Each member’s milk is tested for quality with payments
based on the percentage of fat and SNF. At the end of each year, a portion of the DCS
profits is used to pay each member a patronage bonus based on the quality of milk
poured.
2. The District Union: District Cooperative Milk producer Union is owned by dairy
cooperative society. The Union buys all the societies’ milk, then processes and markets
fluid milk and products. Most Unions also provide a range of inputs and services to DCSs
and their members’ feed, veterinary care, artificial insemination to sustain the growth of
milk production and the cooperatives business. Union staff train and provide consulting
services to support DCSs leaders and staff.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

3. The State Federation: the cooperative milk producers’ unions in a state form, a State
Federation, which is responsible for marketing the fluid milk and producers of members
unions. Some federations also manufacture feed and support other union activities.
2.1.3 NATIONAL DAIRY DEVELOPMENT BOARD
The success of Anand Pattern eventually led to the Creation of the
National Dairy development board with clear mandate of replicating the 'Anand pattern' in other
parts of the country. The board was set up by the government to replicate the Anand experiment
in the rest of the country. The board with the help of Government of India got of commodity
assistance valuing ₹120 crores, under world food program, 1970. This fund was used to develop
Operation Flood program. Under this scheme financial assistance was provided to various state
government and other agencies for implementing dairy development scheme.

2.1.4OPERATION FLOOD

Operation Flood is considered as one of the world’s largest rural development programmes. It
was launched in 1970 by NDDB with an objective to create a nationwide milk gird. This lead to
a revolution in Indian milk industry and is called as The White Revolution of India which made
India one of the largest producers of milk and milk products. Now the national milk gird links
milk producers throughout India with consumers in over 700 towns and cities, reducing seasonal
and regional price variation while ensuring that the producer gets fair market prices in a
transparent manner on a regular basis.

The bedrock of Operation Flood has been village milk producers’ cooperatives, which procure
milk and provide inputs and services, making modern management and technology available to
members. Operation flood’s objectives included:

• Increase milk production (“a flood of milk”)


• Augment rural incomes
• Reasonable prices for consumers

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

Operation Flood was implemented in three phase;

PHASE I: The starting year of operation flood, 1970 to 1980 is considered was phase 1. Phase I
was financed by the sale of skimmed milk powder and butter oil gifted by European Union then
EEC through the World Food Programme. NDDB planned the programmed and negotiated the
details of EEC assistance. During the first phase, Operation Flood linked 18 of
India’s premier milk sheds with consumer in India’s four major metropolitan cities: Delhi,
Mumbai, Kolkata and Chennai.

PHASE II: Operation Flood Phase II (1981–1985) increased the milk sheds from 18 to 136, 290
urban markets expanded the outlets for milk. By the end of 1985, self-sustaining system of
43,000 village cooperatives with 425 million producers had become a reality. Domestic milk
powder production increased from 22.000 tons in the project year t0 140,000 tons by 1989, all of
the increase coming from dairies set up under operation Flood. In this way EEC gifts and World
Bank loan helped to promote self-reliance. During the Phase II direct marketing of milk by
producer’s cooperatives increased by several million litres a day.

PHASE III: Operation Flood Phase III (1985-1996) enabled dairy cooperative to expand and
strengthen the infrastructure required to produce and market increasing volumes of milk.
Veterinary first-aid health care services, feed and artificial insemination services for cooperative
members were extended, along with intensified member education.
Table 2.1 Per capita availability of milk in India
Year Production (tones) Per Capita Availability
(grams/day)
2007-08 97066 241

2008-09 10258 246


2009-10 107934 252
2010-11 112183 258
2011-12 116425 273
2012-13 121848 281

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

2013-14 127904 290


2014-15 132430 299
2015-16 137686 307
Source: Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture,
Government of India.

2.2 KERALA SCENARIO

Dairy cooperative were also developed in Kerala as a part of Operation Flood. Dairy cooperative
have three tier structures in Kerala with primary milk supply society at the base, milk union
supply union at the district level and a state level federation. This cooperative society follows the
Anand Pattern of dairy development scheme.

Kerala Co-operative Milk Marketing Federation (KCMMF) or Milma started its operation
in 1980 with its head office at Trivandrum. It was started under the Indo-Swiss project. The
project was launched in 1963 on the basis of a bilateral agreement executed between the Swiss
Confederation and the Government of India. The project has made great strides in the
improvement of livestock farming in the state. One of them is the development of Swiss Brown,
a cross breed suited for the state's conditions. The project is now managed by the Kerala
Livestock Development and Milk Marketing Board. It main motive was to implement the
Operation Flood programme started by the National Dairy Development Board (NDDB) in
Kerala.

It is a three-tiered organization. At the grassroots level MILMA has 3059 Anand model primary
milk co-operative societies as on 31.03.2012 with 8.6 lakh local milk producing farmers as
members. These primary societies are grouped under three Regional Co-operative Milk
Producers’ Unions viz. TRCMPU for Trivandrum region, ERCMPU for Ernakulum region and
MRCMPU for Malabar region. At the apex level KCMMF functions from the headquarters at
Trivandrum. From the different units managed directly by KCMMF and the various units under
regional unions MILMA produces and distributes pasteurized Vitamin– A enriched milk and
various milk-based products as well as mango drink throughout the state. MILMA has been

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

instrumental in achieving the national goal of self-sufficiency in milk production in the state.
Still the goal is receding as Kerala enjoys one of the highest ranges of per capita milk
consumption. KCMMF is totally content in the realization of this vision which was set before it.
KCMMF has achieved the distinction in its performance by close association and bond with
National Dairy Development Board, Animal Husbandry Department and Dairy Development
Department of the State and Kerala Livestock Development Board.

The milk share of dairy industry of Kerala reveals that MILMA has more market share of milk
as compared to others. The Figure below reveals that MILMA contributes 45% of the market
share, KCA having 9%, A1 milk having 7% and other dairy companies having 39% of the total
share of milk in Kerala.

Kerala will have to take urgent steps to arrest the decline in cattle population and enhance
productivity if milk production is to match the projected demand in the near future. Based on the
projected population and consumption, the annual milk production in Kerala would have to be
increased from 27.91 lakh tonnes to 3.58 million tonnes over the next 10 years. If there is a level
playing field for the private, cooperative and the government sectors then the milk production
could be doubled in 10 years.

KCMMF has played a major role in the development of dairy industry in the state. It has a
strong presence in the market. With an ever increasing demand for all the products manufacture
by KCMMF, it is necessary that efforts are taken to fill the gaps arising out of inadequate supply.

Table 2.2 Per Capita


Availability of Milk in Kerala
Year Per capita availability (gram/day)
2007-2008 171
2008-2009 172
2009-2010 201
2010-2011 210

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

2011-2012 223
2012-2013 216
2013-2014 203

Source: Department of Animal Husbandry, Dairying& Fisheries, Ministry of Agriculture,


Government of India.

CHAPTER 3

COMPANY PROFILE

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

3.1 Profile of Kerala Co-operative Milk Marketing Federation (KCMMF)

. Brand household name, ‘MILMA’ stands for milk and a whole variety of milk products
which enjoy the confidence of each and every Keralite, for their unmatched quality and standard.
The name also signifies the vast organization Kerala Co-operative Milk Marketing Federation
(KCMMF) with it units of procurement, processing and sale spread over all the villages and
towns of the state, giving employment and prosperity to a large number of small and marginal
farmers including women and the landless, processing employees and sellers.

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 the People’,
the dominant concern of MILMA is to render true service to society while ensuring that it does
not incur losses.

The MILMA Represents


• 2678 Primary milk co-operative societies now functioning as on 31.03.2010
• 8.31 lakhs farmer members
• Three Regional Co-operative Milk Producer’s Union
• Thirteen Dairies capable of handling 12 lakhs liters of milk per day

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• Ten Milk Chilling Centers


• Two Cattle Feed plants with cumulative capacity of 600MT per day
• One Milk Powder Plant of 10MT per day capacity
• A well- established Training Centre
• 5,200 retail outlets
• 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.

MISSION
“Farmer’s prosperity through consumer satisfaction” is the mission of MILMA.

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 focused
work focus using state of the art technology ensuring sustained growth and simultaneously
ensuring diary farmer’s delight by better realization of milk price and offering needed service at
his/her doorstep.

OBJECTIVES OF MILMA
The objectives of MILMA are given below:
1. Channelize surplus milk from the rural areas to urban deficit areas to maximize the returns
to the producer and provide quality milk and milk products to the consumers.
2. Carryout activities for promoting Production, Procurement, Processing and Marketing of
milk and milk products for economic development of the farmer community.
3. Build up a viable dairy industry in the state.
4. Provide constant market and stable price to the dairy farmers.

MOTTO
The Motto of Milma is “Your health is our concern”

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

STRATEGY (network)
The Motto of Co-operation, “of the people, by the people and for the people” 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. These Village Co-operative units at the Regional level and from Regional
Cooperative Milk Producer’s Union. These Unions are federated at the state level to from State
Federation namely Kerala Co-operative Milk Marketing Federation (KCMMF).

Associates of MILMA
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. Their chief associates are:-

a. National Dairy Development Board

NDDB, under Dr. V 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 Program and have been our funding agent for the Operation Flood
Projects in Kerala.

b. 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 Producer’s Unions (Amul) is the first in this sector. Our
Cooperatives are called “Anand Pattern Co-operative Societies” following the illustrious
lineage of “Amul”.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

c. 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.

3.2 Regional Milk Co-operative Unions


In order to affect the efficiency and expedite the procurement and marketing, KCMMF has
three Regional Co-operative Milk Producers Unions in Kerala.
These three unions cover the northern, central and region of the state respectively. These
divisions have helped to decentralize and democratize the functioning of the organization. The
regional milk union of “MILMA” functions of democratic lines. Membership to the village
level milk farmers, co-operative societies and right to vote are strictly controlled by
welldefined rules. These rules are based on the quantity and continuity of the milk contributed
by the farmers to the society.
The managing board of all three unions comprises elected representative of the milk farmers
and the board of KCMMF comprises of three nominees from each union. The chairman of
KCMMF is elected from among the elected representatives nominated to the managing board.
The structure of KCMMF shown in Fig.1

Structure of KCMMF
Fig.1

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

Kerala Co -operative Milk Marketing Federation (KCMMF)

TRCMPU ERCMPU MRCMPU

T hiruvananthapuram Ernakulam Palakkad


Kollam Kottayam Kozhikode
Pathanamthitta T hrissur Kannur
Alappuzha I dukki Wayanad
Kasargode

3.3 Thiruvananthapuram Regional Co-operative Milk Producers Union


(TRCMPU)
Thiruvananthapuram Regional Co-operative Milk Producers Union Ltd (TRCMPU) was
registered in 1985, as a Regional Milk Union with 4 Southern Districts of Kerala vise,
Thiruvananthapuram, Kollam, Alappuzha and Pathanamthitta as its area of operation.
TRCMPU was formed by dividing the area of operation of Kerala Milk Marketing Federation,
formed for implementing Operating Flood Project II in 1980, in two via ERCMPU with 4
northern districts under OF II area, and TRCMPU.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

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 at Alappuzha with a capacity
of 60,000 LPD was commissioned in 1989, and New Dairy Plant with one lakh LPD capacity
was commissioned at Thiruvananthapuram in 1992. The Dairy Plant at Alappuzha was
transferred to KCMMF in 1992 in order to facilitate the operation of Powder Plant set up at
Alappuzha for handling surplus milk in the state.

3.3.1 The 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 Chirayinkeezh Thaluk.
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
The Entire Milk is collected through Bulk Milk Coolers. 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 liters per day by 2001 now it is proposed to expand the
capacity to 3 lakh liters 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.

2. Kollam Dairy:

The Dairy was commissioned in 1986 with a capacity to handle 60000 liters per day and
subsequently expanded to handle 1 lakh liters per day.
No. of employees-161, No of societies-336, No. of agencies-1080, Average milk collection-
50,000 LPD, Average milk sale-120,000 LPD

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Quantity processed and supplied to Pathanamthitta unit -45000 liters per day .At present 18,000
liters milk is collected through Bulk Milk Coolers and the remaining quantity in cans. Presently
the milk marketed in Pathanamthitta district is supplied from Kollam Dairy, in pasteurized,
standardized condition.

3. Alappuzha Dairy:

In Alappuzha district, 60000 liters per day dairy constructed under OF II has been expanded to
1 lakh liters per day which is managed by KCMMF. Milk procurement and marketing activities
are carried out by Union. There is also a Chilling Plant with 30,000liters capacity in the district.

4. Pathanamthitta Dairy

Milma is popularly known as the milk man of Kerala is a co-operative sector


undertaking and not a state governed organization. The motto of MILMA is customer
satisfaction. MILMA was actually started to collect excess of milk that was be wasted by the
milk producers are the shareholders of the organization. It has got a 3tire structure system which
basically involves movement of milk from milk producers to society and through BMCC finally
reaches MILMA Dairy. The new MILMA dairy with a capacity to produce 60,000 liters of milk
was constructed at a total cost of RS 14 crores in an area of 10 acres of land at Mammood,
Pathanamthitta district and was commissioned by the end of 2009. Early there was a 30,000
liters chilling plant in Kumbazha in Pathanamthitta which 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 cooler.

3.3.2 DETAILS ABOUT PATHANAMTHITTA DAIRY

• Name of the company: TRCMPU Ltd , Pathanamthitta dairy

• Place: Mammodu, Pathanamthitta(district), Kerala

• Date of registration: 22-04-2010

• Registration No.: T-177(D) APCOS  Nature of organization: Co-operative

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• Industry Category: Manufacturing

• Main products: Milk, Ghee, Peda, Curd, Sambaram, Cup Curd, Paneer and other milk

products

• Power used: KSEB


• No. of employees: 115
Permanent: 69
Temporary: 46

• Primary Milk Co-operative society = 194

• No. of member farmers = 42223

• No. of dairies = 6776

• Total collection of milk = 41300 litres/day

• Local sales at society level = 9169 litres/day

• Milk reaching dairy = 32100 litres/day

Procurement of Milk and its Supply to the Customers


Flow Chart Showing the Procurement of Milk
Milk producers

Society

MILMA
Fig.2

There are basically 3 types of milk produced by MILMA they are double toned milk,
toned milk and jersey milk. In Pathanamthitta dairy only toned and jersey milk are produced and
other products like ghee, curd, sambharam 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. To become the leading organization in the food and nutrition sector in the

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region, through the attainment of its marketing objectives and to become nucleus of an endeavor
for an accelerated development of the rural economy of the region. Further it would aspire to
function as professional, profitable and socially responsible organization ensuring better returns
to farmers, primary societies as well as its customers by providing good value their money.

3.4 ORGANISATION STRUCTURE


An organization chart is a diagrammatical form which shows important aspects of an
organization including the major functions and their respective relationships. In other words, it is
a graphic portrayal of positions in the enterprise of the formal lines of communication among
them. It provides a bird’s eye-view of the relationships between different departments or
divisions of an enterprise as well as the relationships between the executives and subordinates at
various levels. It enables cash executive and employee to understand his position in the
organization and to know to whom he is accountable. Thus, it is obvious that an organization
structure has the following characteristics:

1. It is a diagrammatical presentation.
2. It shows principal lines of authority in the organization
3. It shows the interplay of various functions and relationships
4. It indicates the channel of communication

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ORGANISATIONAL STRUCTURE

Fig 3

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CHAPTER 4 PRODUCT
PROFILE

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4.1 PRODUUCTS AVAILABLE IN MARKET


The products produced by Pathanamthitta Dairy are given below

1. Pasteurized double toned milk

Fig 4
Double toned milk contains 1.5 percent fat and 9.0 percent nonfat solids. Ideal for elderly people
since fat content is low. Can also be used for whitening tea/coffee and for the preparation of milk
based drinks like fruit shakes. Fat will not settle at the top since the milk is homogenized.
Available in 500 ml sachets

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2. Pasteurized homogenized toned milk

Fig: 5

Contains 3 percent fat and 8.5 percent non- fat solids. Ideal for whitening tea/coffee and for the
preparation of solid curd. Since the milk is homogenized, whitening capacity is more and less
amount of milk will be sufficient for whitening tea/coffee. The milk will not stick to vessels on
heating and hence washing of used vessels is easier. Fat will not settle at the top since the milk is
homogenized. Available in 500 ml sachets
.

3. GHEE

Fig: 6

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Contains 99.7 percent milk fat .Manufactured by melting fresh cream under hygienic
conditions. Milma ghee has the ideal golden yellow color due to presence of natural carotene in
cow milk. (In contrast, ghee manufactured from buffalo milk is white in color). No artificial
colors or flavours are added in Milma ghee. Natural aroma and flavor of ghee is retained since
ghee is produced directly from fresh cream instead of going in for melting stored butter. Ghee is
available in 50ml, 100ml, 200ml, 500ml jars and 2 ltr, 5ltr tins.

4.CURD

Fig 7

Contain 10 percent non-fat solids. Ideal for making curries. Prepared under hygienic conditions
by fully mechanized process .Cannot be used as starter-curd for converting milk into curd.
Available in 500 ml sachets with a market price ₹ 27.Set curd is available in 80gm, 200gm, and
400gm cups.

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5. SAMBHARAM

Fig: 8

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 sachets. It is a seasonal product, mainly for summer season. In
future Milma is planning to launch 500 ml sachet of Sambharam. The price of 200ml Milma
Sambharam is Rs.10/-.

6. PEDA

Fig:9
A natural milk toffee manufactured by the heating and removal of a major portion of the water
content of fresh milk and by the addition of sugar. No colour or preservatives are added. Natural
carotene in the milk gives the product is characterized colour. It is nutritious and delicious sweet
bite for children and it is available in 20 grams and in 10 pieces box which cost ₹ 60/-.

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7. PANEER

Fig: 10

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 are available in
100gm, 200gm and 1kg packages.

8. MILMA LASSI

Fig: 11
Lassi is a popular yogurt-based drink from the Indian Subcontinent. Lassi is prepared by
blending yogurt with water and adding sugar and other flavours to taste. Lassi is available
in mango and pineapple flavours. It is available in 200ml bottle which cost ₹25.

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9. MILMA PLUS

Fig: 12
Milma plus is a nutritious drink prepared using milk. This is sterilized flavoured milk
which is available in chocolate, strawberry, pista, badam flavours. Milma plus is available in
200ml bottle cost ₹22.

10. JACKFRUIT PEDA

Fig: 13
Jackfruit is very nutritious and rich in energy, fiber, minerals and vitamins and free from
cholesterol. Jackfruit peda is made with traditional quality and real essence of jackfruit.

OTHER PRODUCTS FROM MILMA 11. MILMA SIP UP


Milma sip up is made from pasteurized skim milk, sweetened and flavored, which is
available in 25 ml polythene tube which flavored by vanilla, pineapple, strawberry and mango
served in chilled condition. It is good for health and is a nutritious substitute to all othe sip up.
The market price of the sip up is Rs 3.00

12. ICE CREAM


Milma ice cream is available in a range of lip smacking flavors: vanilla, chocolate
mango, strawberry and pista. The only ice cream in Kerala market which is manufactured in a
diary is milma ice cream and hence this is produced in the Thiruvanamthapuram Dairy. The

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market price of the ice cream is Rs 75.00 for standing flavors and the special flavors like
chocolate Rs 400.00 and butterscotch Rs 435.00

13.CATTLE FEED
Balanced cattle feed is the major input to the dairy farmers of the state federation. There
is a high level of acceptability for this product in the market. Milma produce both mesh pellet
from the cattle feed. The cattle feed is distributed to the farmers at a reasonable price through
different agencies.

14.MILMA INSTANT DAIRY WHITENER


Milma have plant in Alappuzha for the milk powder production from milk. The market
price of 500 gm of milk powder is ₹155 and for 200 gm is ₹65.

15.PALADA MIX
Palaada mix is a product of Kozhikode Dairy in the market price of Palada mix for 250 gm
is ₹60.

16.MANGO DRINK
Mango drink is a product of Alappuzha Dairy. The market price of the mango drink
200 ml – ₹15, 500 ml- ₹30, 1 ltr- ₹52.

17.MILMA BUTTER
Thiruvanamthapuram dairy is the producer of the Milma Butter. The market price of the
Milma Butter is ₹45 for 100 gm. This product can stored up to 6 months from the manufacturing
date under refrigeration condition.

18.MILMA CHOCOLICK
Milma chcolick is a choc-bar which is produced in the Ernakulam Dairy the market price
are ₹15 for choc-bar and ₹20 for mango bar.

OTHER PRODUCTS
• Gulab jamun

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• Set curd
• Mridula- Toned Milk Curd
• Pakaged Drinking Water
• Kazzatta
• Kulfi
• Delight
• Royal plum cake
• Milma Chocalates
• Milma flavoured bar

4.1 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.

4.2 COMPETITORS OF MILMA


PRODUCTS COMPANIES
 Milk Malanadu,Royal,A-One,Ksheera,Cowma,Star,
Sabari etc.

 Ghee RKG,Nambeesan,Namboothiri,Malanadu,Britannia
Amul etc.

 Butter Amul,Britannia etc.


 Curd Malanadu, Sapins,Sabari
 Ice Cream Uncle John,Lazza,Amul,Meriiboy etc.
 Milk Powder Every day,Amul,Nestle Nido

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 Sip-Up Meriiboy,Vincos ,Mr.cool sip etc.


 Water Classic,Aquatic,Himalaya,Bissleri water etc.
 Chocolate Cadbury,Nestle,Amul etc.
 Mango drink Maa,Frooti,Jive,SliceTropicano,Be Natural

Table 4.1

Source: Document of TRCMPU. Some of other competitors

KERALA MARKET SHARE OF MILK

MILMA 45%
OTHERS39%
K.C.A 9%
A1 MILMA 7%

Fig 14

Source: Kerala Co- operative Milk Marketing Federation (KCMMF) Report, 2015-16

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CHAPTER 5 FUNCTIONAL
DEPARTMENTS OF
PATHANAMTHITTA DAIRY

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FUNCTIONAL DEPARTMENTS AND FUNCTIONAL AREA ANALYSIS


According to Chester I. Barnard a formal organization is defined as “a system of
consciously coordinated activities or forces of two or more persons”. A formal organization is
deliberately designed to achieve some particular 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.
The formal organization is built around four key pillars, namely:
(i) Division of labour (iii) Structure
(ii) Scalar and functional processes (iv) Span of control

Division of labour and specialization is the basic principle of formal organization 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 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. In
Pathanamthitta dairy, there are 7 departments under the control of the Manager and each
department is headed by the concerned head of the respective department.
• HUMAN RESOURCE DEPARTMENT
• MARKETING DEPARTMENT
• PRODUCTION DEPARTMENT
• QUALITY CONTROL DEPARTMENT
• FINANCE AND ACCOUNTS DEPARTMENT

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• PROCUREMENT AND INPUT DEPARTMENT


• ENGINEERING AND MAINTENANCE DEPARTMENT

5.1 HUMAN RESOURCES DEPARTMENT


Human resources are regarded as the only dynamic factor of production. Other factors
like material, methods, machine, money etc. are useless without their effective use by the human
resource planning in the organization to use the other resource effectively. Thus labour is
considered to be the most important factor of production in the current scenario. Hence
employees are considered to be most important asset of the organization and are valued lot in
MILMA.
According to Edwin B. Flippo, “Human resource management is concerned with the
procurement, development, compensation, integration and maintenance of personnel of an
organization for the purpose of contributing towards the accomplishment of that organization
major goals and policies”. In Pathanamthitta Dairy, the human resource department is headed by
the Personnel Officer. The dairy 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


PERSONNEL OFFICER

SENIOR ASSISTANT

JUNIOR ASSISTANT

STENOGRAPHER

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Fig: 15

ROLES AND RESPONSIBILITIES


1. Personnel Officer
• Total administration of discipline in the firm.
• Communicating between the management and the employees.
• Solving the problems regarding employees.
• Taking precautionary measures to avoid unrest in the firm.
2. Senior Assistant
• Deals with matters regarding transfers, payments etc.
• Service matters
3. Junior Assistant
 Deals with the primary stages of grievance redressal.

4. Stenographer
 Does secretarial jobs towards the Manager (Dairy) / Personnel Officer.

Functions of HR Department
1. Recruitment and 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 as per the rules and regulations fixed by the Board of
Directors with the consent of Government time to time. 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 concerned Departments

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SELECTION PROCESS
Temporary staffs are recruited by the concerned units and permanent staffs are recruited by the
head office, in the following process:

I. Inviting application: KCMMF releases the advertisement in leading newspapers


showing the vacancy and quality required by the applicant.

II. 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.

III. 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

IV. Interview: Next step is the interview conducted by the top officials of Milma. Interview
is also conducted by a group of various managers.

V. 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.

2. Induction and Orientation


Initially there should be an induction period for about three months during which on
onthe job training should be given to the permanent employees. During the training period they
will be taken to all departments so as to understand the working of all departments and

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understand how they all are related to one another. At last they will be placed in their own
assigned post.

3. Training

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”. Training is given to the permanent employees. There is on the
job training as well as off the job training. For managerial posts, off the job training is provided
to the employees. For temporary employees, on the job training is provided. NDDB is usually in
charge of it. Officers and Veterinary Doctors and other permanent employees are sent to the
Institute of Rural Management (IRM), a training center in Gujarat and also ISO based training is
given to all employees.

4. 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

5. 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.

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6. Method of remuneration the employee and incentive plan


The dairy 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 allowance 1% subsidy for interest rates.
• Employees completing 25years of service ₹ 4000 cheque.
• Motor Conveyance Advance for purchasing Motor Car/Two Wheeler to all
permanent employees as loan.

7. Motivation
In this organization employees are motivated monetarily as well as non-monetarily.
The total earnings of an employee include basic pay, daily allowance, HRA and other
Allowances.
8. Working condition
The retirement age of the employee is kept as 58 years in this organization.

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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.
9. 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.

10. 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.
11. Disciplinary Proceedings
The HRD department is responsible for maintaining discipline in the organization.
At the 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

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5.2 MARKETING DEPARTMENT

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. The department structure is given in fig 16

MARKETING OFFICER

ASSISTANT MARKETING
OFFICER

MARKETING
ORGANIZER

FIELD STAFF OFFICE STAFF

MANAGEMENT MARKETING SALESMAN CASHIER DESPATCH


TRAINEE PROMOTER
ASSISTANT

ASSISTANT MANAGER

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Fig 16

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.

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(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
dairy is 60000 liters of milk per day. 35000 liters of double toned milk (DTM) and 25000 liters
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 buyers
can buy the product. All the MILMA products are available in this MILMA Shoppe. Product
such mil, 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

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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 are given
one year validity ID card along with a number also assigned the each and every agent in the form
of AG-304

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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-am21|
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 cur 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 2ton, 3 ton or 5 ton

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

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 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
icecream, sip up and chocolate are mainly targeted to children.
 Promotion
There is less promotional activities from the firm. Usage of posters, calendars, stalls, bill
boards 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

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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 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.

5.3 PRODUCTION DEPARTMENT


Production is the processes which combines and transforms various resources into value
added product or services. It is the core department of the company. The production department
is headed by the Assistant Manager and is assisted by Technical Officers, Technical
Superintendents and Technicians. There are only two types of milk produced-double toned milk
and jersey milk. The various other products manufactured are sambharam, curd and ghee.
Pathanamthitta dairy provides the sale of other products like chocolate, ice-cream and butter.
Functions
• Processing of milk

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• Procures raw materials


• Makes payments for the milk powder
The structure of the department is given below in fig.17

ASSIS TANT MANAGER

TECHNICAL OFFICER

TECHNICAL
SUPERINDENTENT

OPERATORS AND
ATTENDERS

Fig 17

Production Process
Pathanamthitta dairy produces various products. The main product is milk and there are
Mainly three types of milk produced in the dairy are double toned Milk and Jersey Milk.
The other products are manufactured are ghee, curd, sambharam and peda.
Pathanamthitta dairy provides the sale of other products like chocolate, ice cream, and sip
up, drinking water, mango drink, butter, milk powder and MILMA plus through MILMA
Shoppe.
1. Milk
Milk is the one of the major product produced here. The process of milk includes
various steps are given in below in Fig 18

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

PRODUCTION PROCESS (PROCESSING OF MILK)

UNLOADING&PLATFORM
TEST

QUEEING

QUALITY CHECK

PASTEURIZATION

QUALITY CHECH AFTER


PASTEURIZATION

PACKING

Fig 18
PROCEESSING OF MILK

RECEPTION

At first raw milk from BMMC’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 stays 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 of milk is recorded using
logging machines to test the fat content. Then the milk is pumped into a large tank called SILO

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which has a capacity of holding 50,000 litres. There is a daily procurement of about 34.000 litres
in the dairy plant.

There are basically two process involved in production plant:-

• Pasteurization
• Standardization
In pasteurization there are again three different stages.

• Heating section
• Holding section
• Chilling section
The milk is at first transferred to a container which has got steel plates. The container is divided
into 2 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 so as to destroy all the
microbes and other harmful bacteria present in milk, the pasteurization unit can pasteurize more
than 1000 litre of milk in four hours. After this other activities like filtration 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 also
the 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 in two separate tanks. There are two different types of milk processed namely double
toned and jersey milk. Double toned milk should have a fat content of about 1.5% and SNF of

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

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.

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.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

2. Ghee
There are different methods used for preparing ghee namely butter to ghee, direct melting
methods etc. In this dairy cream is melted to form ghee and then collected within other tanks in
which it is stored and allowed to settle after one week the settle ghee was packed.. 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 hours.
3. Curd

Curd is made of skimmed milk or fatless milk. The skimmed milk is heated to about
50degree 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 and because of the presence of
lactobacillus, the milk gets fermented to curd. This is then kept inside an incubator at 43 degree
Celsius and then added to a big tang 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 also in bulk.
4. Sambharam
Butter milk is available in small sachets of 200 ml often and is processed quite easily
by separating out the cream from the milk manually. Curd is thoroughly agitated and to it
equally quantity of chilled water is added. Small proportions of chilly, ginger, salt and curry
leaves are added and mixed. It is covered in plastic covers and dispatched.

5. Peda
A natural milk toffee manufactured by the heating and removal of a major portion of
the water content of fresh milk and by the addition of sugar. No color or preservatives are added.
Natural carotene in the milk gives the product its characteristic color. Ideal for children and as an
after food sweet.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

5.4 QUALITY CONTROL DEPARTMENT


MILMA works with the aim of giving high quality product to its customer. The quality control
department is headed by Assistant Manager and is followed by Quality Control Officer,
Bacteriologist, Lab Technician and Lab Assistant. Milma’s products are tested at each and every
stage of production. This department is mainly for checking the quality of products right from the
reception 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’s mainly for the benefits of the 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 of being brought from societies. The
structure of the department is given below Fig: 19

ORGANISATIONAL STRUCTURE OF QUALITY CONTROL DEPARTMENT


QUALITY CONTROL OFFICER

DAIRY CHEMIST

LAB TECHNICIAN

LAB ASSISTANT

Fig 19

FUNCTIONS
 Taking samples at every stage of milk processing and of other milk products.
 Timely testing the quality of milk and other milk products.
 Maintains to keep the standard

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

MILMA products are tested at each and every stage of production. This department is
mainly for checking the quality of product right from reception till take the final stage of
production and thus providing the customers with best products. MILMA collect milk on the
APCOS pattern which has been originated from Amul and has replicated in Kerala through
MILMA. It’s mainly for the benefit of the milk farmers. High quality is maintained within the
dairy by not touching the milk with hand expect at the time of brought from societies. The
Pathanamthitta dairy has received the MMPO (Milk and Milk Product Order) standard and is on
the verge of attaining ISO 9000 certification. The quality assurance system in Pathanamthitta
Dairy is to monitor chemical and bacteriological quality of raw materials to finished products to
ensure specified quality
The quality is monitored at all stage in terms of flavours, temperature, acidity etc. All
the physical and chemical properties are also considered. Various quick tests are conducted like
bacteriological test, phosphates test, and ethane blue reduction test. Usually tests are conducted
to find out whether the milk is neutral or whether hydrogen peroxide has been added by the
farmers.
Usually tests are conducted to find out whether the milk is neutral, or whether
hydrogen peroxide has been added by the farmers. Producers are the shareholders. Many
incentives are provided to these farmers like calf fed provisions, veterinary aids, employment
opportunities to their children etc. The various products available are curd, sambharam, milk and
ghee. 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. The products are marketed accordingly which is very comprehensive procedure
being followed. As Milma is having brand loyalty there are very few competitive strategies
formed affecting growth of Milma. Milma is very much quality conscious and hence customers
have lot of faith in its products.

Quality assurance system at Pathanamthitta dairy

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

society Milkatfrom
Raw Milk Milk from society
Dairy
MRT test

Bacteriological test

Phosphate test

Chilling to less ( To control bacteria growth )


than 10 o Celsius

Processing
Test for acidity

Coliform

Ghee Cream

Separation Standardization ( tested for room temperature,


&Testing Fat, SNF, acidity)

Curd skim milk

Packing& (Sachets tested for Quality standards )


Sambharam Cold storage

(Tested for temperature, coli form )


Distribution

Dispatching to
agents z
(Pasteurisation)

Fig: 20

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

ROLE OF MANAGER

• Coordinate activities of ensuring quality at regular intervals of time.


• Maintaining the prescribed ISO, FSSA quality standards.
• Preparation of quality control reports on a daily and monthly records.
SIGNIFICANT FACTORS FOR SUCCESS

• Coordinate activities of quality measurement at regular time intervals.


• Maintaining the prescribed ISO, FSSI, HACCP quality standards.
• Preparation of quality control reports on a daily and monthly basis.

Period of quality testing

1. When milk is received at the plant its appearance and smell is first its checked
2. Then sample is taken at RMRD (Raw Milk Reception Dock) and test to know the fat
content in order to fix price for the concerned society which supplied the milk.
3. Sample is taken at the processing stage of milk to know temperature of milk.
4. Later sample milk is taken from the processed milk tank to know the fat and acidity.
5. Sample is taken from filled packets
6. Similarly this is done in cold storage.
7. Sample is taken at dispatching of milk packets.
8. Five packets are taken as samples in a month to know whether the quality is maintained.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

5.5 FINANCE AND ACCOUNTS DEPARTMENT


Management of finance is considered as the life blood of business organization. A firm cannot be
sustained in the absence of an efficient finance department. Financial information of the dairy
supplied by the financial department is prepared by financial statements or accounting reports.
The department consists of total 4 employees headed by Accounts Officer. Finance and Account
department deals the financial aspects of the organization and prepare annual budget, balance
sheet, estimate the source and application of funds. The main duty of this department is
procurement of funds, determination of sources of funds and utilization of procured funds. The
structure of the department is shown in figure below: 21

ORGANISATIONAL STRUCTURE OF FINANCE AND DEPARTMENT

ASSISTANT MANAGER

ACCOUNTS OFFICER

JUNIOR
SUPERINTENDENT

MANAGEMENT
APPRENTICE

Fig 21

FUNCTIONS
 Providing financial assistance as per the departmental requirements.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

 Keeping the monetary transactions in the book of accounts except the marketing
department
 Finance department also deals with the systems department
 Systems department operates with software which is made by KCMMF, MILMA
Integrated Information System.

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.

MODES OF PAYMENT
HRD department prepares the payment of employees and sends to the Finance department.
Payments are made in two ways, through direct cash which is paid in finance department and
other through in bank i.e. in the SBI. Over time payment is not paid in cash but paid in bank. The
following are different modes of payments at different situations.
CASH PURCHASE: Makes payment within 10 days made to society’s milk purchase.
CREDIT PURCHASE: 15 days get as credit period for film (plastic cover pack) purchase.
ADVANCE PAYMENT: Advance payment is needed for purchase of skimmed milk

ACCOUNTING SYSTEM
The organization follows the double entry system of accounting. All transactions are made
up-to-date. Trial balance and profit and loss account are prepared half yearly. A uniform system
is designed according to the rule and accounting system set by NDDB (National Dairy
Development Board).KCMMF developed accounting system called Milma Integrated System

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

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.

TAX PAYMENT
Tax planning mechanism is practicing in the organization with a view to reduce tax
liability. Apart from this a certain amount is paid to the bank as price different to farmers from
profit. Out of the total revenue about 82% recorded from sale of milk and 18% from milk products.
A credit collecting period of one month is provided to debtors and 45 days for government
institution.
Maintenance of Books and Records
The following books of accounts are maintained in the department
1. Cash Book
2. Bank Book
3. General Ledger
4. Journals
5. Direct payment Register
6. Bill Register
7. 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

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computerized and hence man power is limited. Cash receipt is prepared through computerized
system that is, by using MIS (Management Information System).

5.6 PROCUREMENT AND INPUTS DEPARTMENT

Procurement of milk is the most important function of this department and is headed by
Assistant Manager of the dairy. The procurement and inputs 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 areas 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 of milk which was being wasted by the farmers. But with the start of Milma this excess
milk started procuring it on a pricing rate based on FAT and SNF content present in the milkThe
structure of P& I department is given below

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

ASSISTANT MANAGER

VETERINARY OFFICER

MILK PROCUREMENT
OFFICER (MPO)

ASSISTANT MILK
PROCUREMENT OFFICER

SUPERVISORS

MANAGEMENT APPRENTICE

VILLAGE RESOURCE PERSONS

Fig 22
FUNCTIONS
 This department deals in procuring milk from the societies.
 Calling tenders of vehicles
 Scheduling of routes
 Providing veterinary services
 Providing cattle feed supply

. 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 societies there are always large amounts of invisible microbes present

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

within the milk which will keep multiplying at the normal atmospheric temperature. So it is
necessary to keep this milk at a temperature which can make the microbes in the dormant stage.

So to keep them inactive they are stored at very low temperatures by chilling them at
collection centres called BMCC (bulk milk cooling centres). BMCC collects milk from all the
regional societies and the microbes made dormant and then brought to the dairy plant for further
processing totally there are 194 societies registered in Pathanamthitta dairy and out of that 179
are functional societies, 166 societies functioning are APCOS based and 161 provide milk to the
dairy. For this purpose tankers are used. There are about three tanker Lorries are there for the
procurement of the milk from various societies.

Milma collects milk from the societies twice a day. Once in every two days payments are made
to the farmers. Societies make weekly payments to the milk producers. For 1 litre of milk ₹19.20
is given to the primary societies annually according to the quality of the milk. The basic structure
of the department is as illustrated and there is an Assistant Manager as the head and then comes
MPO (Milk Procurement Officer) and then 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 substantiate emergency conditions when the veterinary doctors Milma
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 besides this minerals, oil, mixtures and various other health supplements
required by the calves are provided to these farmers for about 6 months.
• 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.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• 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.

• Scholarships are given to the children of these farmers from 10th standard to post
graduation under certain conditions like the respective farmers should provide milk of
about 500litres or 180 days to concerned regional society.
• Farmer’s health is also insured through various health insurance policies.
• Free fodder is provided for cattle and for this fodder cultivation in about 150 acres land
area has been done for about 5 years on a whole.
• Artificial insemination process.
• De-worming of cows, heifers.
• Cattle insurance.
• Production enhancement.
• Ultra treatment of paddy straws.
• Women self-help communities have been started for developing their skills and
economic status.
• Financial assistance to active milk producing farmers.
• Implementing group insurance schemes of LIC for milk producers.

ROLE OF MANAGERS
• Providing adequate input to the cattle farmers on a regular basis.
• Farming policies and schemes to increase the procurement and policies.
• Conducting MIS meetings.

SIGNIFICANT FACTORS FOR SUCCESS


• Providing regular milk price for farmers.
• Increase of product value.
• Credible and reliable, since managed by farmers.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• Benefits more than other fields.


• Income arrived very fast.

PROCUREMENT PROCESS OF MILK FROM FARMERS

FARMERS

SOCIETY

TANKERS

MILMA

Fig 23

5.7 ENGINEERING AND MAINTENANCE 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. There are separate room for electricity, generator, boiler,
refrigerator kept outside the production plan connected through pipes and tanks. The electricity
needed is taken from KSEB. The transformer present an 11KV lines drawn from Adoor and
Pathanamthitta is directly connected to the dairy and 2 transformer present which will set up

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

down the voltage to 440 volts. In case electricity breaks down separate generator with capacity
of
400 KV is present in the dairy. The structure of the department is given in figure below: 23

The Structure ASSISTANT MANAGER


of Engineering &
Maintenance Department

DEPUTY ENGINEER

TECHNICAL
SUPERINTENDENT

TECHNICIANS
(Electricians, Boiler Operators)

JUNIOR ASSISTANT

STORE ATTENDER
Fig 24

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

• Service equipment

• Routine equipment

SERVICE EQUIPMENT

It includes maintenance and repairs of service of the equipment’s needed in the production
process which includes boilers, refrigerators, air systems, electrical systems etc. it deals with all

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

equipment’s 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 like water arrangements, saturator approval consent, DC board, diesel, furnace oil
license renewing are also done here.

VEHICLE SECTION

There are totally 17 vans and 3 tankers in Pathanamthitta dairy plant on a contract basis. This
department has to 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 ton. Furnace oil, water, electricity are the main constituents.
These boilers are inspected by factory and boiler inspector and the machine 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.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

The features of the boilers are Capacity- 2 ton steam per hour, heating surface area- 50.46 meter
square and Steam pressure- 3.5kg/cm 2 steam.

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 is allowed to 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 – it 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 materials at the required time.
• Timely addressed of maintenance and repair work of machine and machine parts.
• Decrease the number of milk sache leaks.
• Minimize the number of break down.
SIGNIFICANT FACTORS FOR SUCCESS

• Team work
• Use of technology in inviting tender hence process are completed at rapid place 
Maintaining of monthly and weekly stock register.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

CHAPTER 6
PERFORMANCE ANALYSIS

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

ANALYSIS OF THE ORGANIZATIONAL PERFORMANCE OF


TRCMPU PATHANAMTHITTA DAIRY
6.1 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 remain are internal threats.
The structure of Porter’s five force analysis is depicted below Fig: 21

Potential entrants
(Threat of Mobility )

Sup p lier’s Industry Rivalry Buyers


(Supplier power) (Buyer Power )

Substitutes
(threat of
Substitutes)

Fig 25

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.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• The bargaining power of suppliers.


• The intensity of competitive rivalry.

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.

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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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

6.2 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 favorable and unfavorable 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: characteristics of thee business or team that give it an advantage over
others in the industry.
 Weakness: characteristics that place the firm at a disadvantage relative to others.
 Opportunities: external chances to make greater sales or profits in the environment.
 Threats: external elements in the environment that could cause trouble for the
business.

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.

STRENGTHS
1. Good brand name in the Kerala dairy market.
2. High quality product.
3. ISO certification.
4. Milma holds the major market share in dairy market, especially milk.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

5. Adequate support from NDDB and Government of Kerala.


6. Service oriented function.
7. Good distribution channel.
8. Reasonable price of product.
9. Good manufacturing infrastructure.
10. Milma is a farmer’s owned organization.
11. Strike free organization.
12. Eco- friendly plant.
13. There is great number of employee benefit scheme.
14. Ensures timely quality testing of milk and other related products.
15. There is good coordination between the Manager and the Departmental
Heads.
16. There is good interrelationship between all departments.
17. Strict disciplinary actions and quick grievance redressal are taken.

WEAKNESSES
1. Increasing cost of procurement of raw milk and material.
2. Inadequate sales promotion campaigns.
3. No provision for credit facilities.
4. Inadequate sales outlets in rural areas.
5. Absence of technology up gradation programs.
6. Faces milk shortage.
7. There is no R&D development.
8. Just meeting the demands of the market rather creating more demand.
9. Low advertisement and promotional activities for products other than milk.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

OPPORTUNITIES
1. Large product range
2. Scope of product diversification.
3. The company can expand its distribution area.
4. Growing demand for product is a good sign.
5. Good scope for capturing huge market share in the milk products category.
6. Potential for widening the market by redesigning the market strategies so as to
improved large scale marketing by direct supply to hotels, bakeries etc.
7. More opportunities to create demand in rural areas.
8. Government support, i .e, subsidies tax concession.
9. Scope for introducing variety products in the markets on bars of changing life
style of customers.
10. Scope to process more milk from other states, thus increasing productivity.

THREATS
1. Stiff competition in the local market.
2. The liberal credit facility offered by other organization.
3. Changing life style and taste of consumer.
4. Seasonal fluctuations in the availability of raw materials
5. Demand exceeds supply.
6. Lowered price of local brand than that of Milma.
7. Faces milks shortage within state.
8. Promotional activities undertaken by other agencies supplying milk and milk
products.
9. Too much intervention of government in sector such as procurement and
decision making.ie, government policies and practices.
10. New competitors may reduce market share.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

CHAPTER 7
FINDINGS, CONCLUSIONS AND SUGGESTIONS

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

7.1FINDINGS
• There are 3 types of milk produced by Milma – double toned milk, toned milk, and
jersey milk. However in Pathanamthitta dairy only toned and double toned milk are
produced.
• The major products of Pathanamthitta dairy are pasteurized double toned milk,
Pasteurized homogenized toned milk, ghee, curd, sambharam and peda.
• Malanadu, Sabari, Royal, A-one, Ksheera, Balaji, Star, Namboothiri, Britannia and
Amul are the major competitors of Milma products.
• Milma occupies 45% of the market share of milk in Kerala.
• There are 7 functional departments in Pathanamthitta dairy
• The processing of dairy is 60000 liters milk per day, 35000 liters of double toned
milk and 25000 liters of toned milk.
• The products of the Pathanamthitta dairy are sold through a stall “Milma Shoppe”
located in the organization.
• 82% of the total revenue of the dairy is from sale of milk and 18% from milk
products.
• Good brand name, high quality products, ISO certification are the strengths of
Pathanamthitta dairy.
• 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.
• Large growth potential in Rural areas, potential for entering in National market by
undertaking improved potential activities are the opportunities of Pathanamthitta
dairy.
• Promotional activities undertaken by other agencies supplying milk and milk
products, Stiff competition in the Local market are the threats of Pathanamthitta
dairy.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• Overall Respondents do not agree that work life motivates to exhibits better
performance.

• Company is properly auditing the books and accounts in every financial year.
• Maintain good employer and employee relationship.
• Less employee turnover.
• Free flow of communication exists in the organization.
• Dealership commission is low compared to competitors.
• Better coordination among different departments.

7.2 CONCLUSION
The organization study at Milma was done with an objective to understand how an
organization functions, what are its major departments and functioning of these departments. The
study at Milma provided the opportunity to learn the organizational goals and objectives, various
department that conduct critical functions and the interrelation between them. Milma is observed
to be an organization that not only has an objective of working profitably but also a socially
responsible organization 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.

Milma Pathanamthitta is a company that maintains ISO standards and it is one of the
best industries in Kerala. Milma is having goodness in the minds of people no other industries
have ever been as possible as Milma. Milma systematically set up a strong network of marketing
outlets with a dedicated marketing team synchronizing the movement of milk. Today Milma

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

products are facing stiff competition from various other brands. Since Milma maintain their
quality of products, it is obvious that they have a bright future.

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
organizational objectives.

7.3 SUGGESTIONS
Based on the findings and conclusion drawn there from the following suggestions are made
• Policy decisions may be taken by the management to give more advertisements with
a view to widen the market of the products.
• The credit policy of the company may be revised by considering the credit period
allowed and enjoyed by the dairy.
• The marketing strategies of the organization may be redesigned so as to popularize
ghee and other milk products.
• Initiative may be taken by the management to conduct market surveys at periodical
intervals.
• Computerized performance appraisal system may be introduced in the organization
• Should implement R&D department for producing new products and improve in
certain areas.
• More production and promotion of Sambharam may increase the market especially
in the Sabarimala season.
• Implementing more training programs will increase the performance of the
employees.
• Shoppe in the dairy must be opened during 1pm to 1.30pm.

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

• More Milma Shoppes must be started in urban areas with the help of government
Nodal Agencies such as Kudumbasree.

BIBILOGRAPHY
Books

• Harold Koontz, Heinz Weihrich , Essentials of Management , Tata McGraw- Hill

publishing Company Ltd New Delhi 2010

• Kothari C.R, Research Methodology Methods and Techniques, Second edition,

New Age International Publishers, New Delhi

• Philip Kotler, Marketing Management- A South Asian Perspective, 14th edition,

Pearson

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Organization study at TRCMPU Ltd, Pathanamthitta Dairy

REPORTS
• Annual Accounts and Reports of MILMA
• Reports of Department of Animal Husbandry, Dairying and Fisheries, Ministry of
Agriculture, Government of India.

WEBLIOGRAPHY
• http://www.milmatrcmpu.com
• http://en.wikpedia.org/wiki/Kerala_Co-operative_Milk_Marketing_Federation
 http://www.nddb.org

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