UNIVERSITY OF ARICULTURAL SCIENCES, DHARWAD

COLLEGE OF AGRICULTURE, DHARWAD

DEPARTMENT OF AGRIBUSINESS MANAGEMENT

INPLANT TRAINING PRESENTATION

ON

MALABAR REGIONAL CO-OPERATIVE

MILK PRODUCER’S UNION LTD.

SAFWANA JASMIN T
PGS19AGR8013
MBA(Agribusiness)
LET’S GROW
INTRODUCTION
 India : Highest Milk production and consumption
 In 2018–19 187.7 million tones of milk
 per capita availability of milk in India : 394 grams
per day.
 Milk contains nutrients that offer many health
benefits.
 Kerala, 12th largest dairy market in India,( 12.4 %
growth  2*6.40 %, National average during 2019-20).
3 tired organisation,
formed under National Dairy Programme
‘Operation Flood’. “

KCMMF, Trivandrum
(1980)

MRCMPU, Calicu t
ERCMPU, Ko chi
TRCMPU, Triv an drum

APCOS [3315]
 MRCMPU LTD. ------ Figures at a glance

 Date of starting operation: 15.01.1990

 No. of Dairy Plants : 6
 No. of village level APCOS :1112 by December 2020
 Central Products Dairy : 1
 No. of Milk Chilling Plants : 3
 No. of Milk Chilling Centers : 2
 No. of Procurement and Input Centers : 10
 No. of Marketing Depots : 8
 No. of Human Resource Development Centre : 1
 Turnover (2019-2020) : Rs. 1139.62 Crores (Rs 11396.2 Million)
 Paid up share capital (2019-2020): Rs 53.08 crores (Rs 530.8 Million)
 Average daily procurement of raw milk (2019-2020) : 6,30,840 Liters
 Average daily sale of processed liquid milk (2019-2020) : 5,05,170 Liters
 Average daily sale of Skimmed Milk Curd (2019-2020): 66,261 Kilogram
 No. of farmers supplying milk to the Union (2019-2020) : 87,995
Some of the milma products
 Objectives
Socio-economic development of the dairy farmers

The entire volume of milk produced by the farmers of affiliated member



societies is purchased at remunerative prices even in surplus situations.

Proper processing and packing of milk products are carried out in the


dairy plants owned by the Union to guarantee product quality of the

products supplied to the consumers.

Proper marketing of milk and dairy products are carried out on a daily


basis to guarantee consumer satisfaction and thus maximize economic

returns for the farmer.

Proactive Innovation and Quality Consciousness .


 Vision
To be the global leaders in ensuring the
health and wellness of Human beings by supplying safe and
sane food, produced by local small/medium, fully respected
and fairly treated farmers and self motivated work force.

Mission
MILMA is committed to ensure Farmers' prosperity, well being and
consumers' satisfaction
 By providing value for money through a variety of safe and
sane products,
 Innovated through, sustainable, eco-friendly and
transparent procedures, by the collective, proactive efforts
of self motivated employees, farmers and stake holders.
 Values

 Collective Ownership and

Responsibility
 Social Commitment
 Mutual Trust through Respect
 Credibility through Transparency and
Accountability
 Proactive Innovation and Quality
Consciousness
 Personal as well as Institutional
Confidence
 Continuous Learning
Initial funding : Government of Switzerland through the Swiss Agency for Development and


Cooperation (SDC).

The SDC withdrew from the scene in 1998 allowing the organization to grow and develop


independently.

MRCMPU Ltd. has the following functional Departments to

achieve its objectives.
1. Procurement and Inputs

2. Marketing

3. Production Planning and QC

4. Finance

5. Engineering & Projects

6. MIS & Systems

7. Personnel and Administration

8.Projects

HEAD OFFICE
UNITS UNDER MRCMPU Ltd.
KASARAGOD DAIRY

 Location : Kanhangad
 Commissioned on : 25.01.2003
 Processing capacity per day : 75,000 Liters
 Market Area (Milk) : Kasaragod District
 Turnover (2019-20) : Rs 96.35 Crores(Rs. 963.5
Million )
 KANNUR DAIRY


 Location : Pallikunnu ,Kannur

 Commissioned on : 29.08.1979

 Processing capacity per day : 1,25,000 Litres

 Market Area (Milk) : Kannur District

 Turnover (2019-20) : Rs 147.67 Crores(Rs. 1476.7 Million )
 WAYANAD DAIRY


 Location : Chuzhali ,Kalpetta

 Commissioned on : 01.10.2008

 Processing capacity per day : 1,00,000 Liters

 Market Area (Milk) : Wayanad District, Tirur, Malappuram and Kottakkal
areas of Malappuram district, Quilandy and Vadakara Taluks of Kozhikode
district and Koothuparamba area of Kannur District.

 Turnover (2019-20) : Rs 177.85 Crores (Rs. 1778.5 Million)
 KOZHIKODE DAIRY

 Location : Kunnamangalam, Kozhikode

 Commissioned on : 06.02.1995
 Processing capacity per day : 2,00,000 Litres
 Market Area (Milk) : Kozhikode District,
Kondotty,Manjeri , Nilambur and Areakode areas of
Malappuram District.
 Turnover (2019-20) : Rs 228.95 Crores (Rs. 2289.5
Million)
 CENTRAL PRODUCTS DAIRY

 Location : Naduvattam,Kozhikode
 Commissioned on : 04.10.2009
 Market Area (for Long Life Products) : Entire area
of operation of MRCMPU Ltd.
 Turnover (2019-20) : Rs 39.50 Crores ( Rs 395.0
Million )
 MALAYORA DAIRY

 Location : Sreekandapuram, Kannur

 Commissioned on : 15.11.2017
 Processing capacity per day : 1,00,000 Liters
 Market Area (Milk) : Irritty and Thaliparamba area of
Kannur district
FROM HEAD OFFICE
CATEGORIES OF PRODUCTS FROM
MRCMPU
 Golden milk
 Toned milk
 Curd
 Ghee
 Butter
 Lassi
 Paneer
 Idly/Dosa batter
 Peda
 Gulab Jamun
 Instant Palada mix
 Flavored milk
 Cake
 Ice creams
ORGANISATIONAL STRUCTURE

Managing director

Dairy managers (6) Department heads (8)

 IMPORTANT
DEPARTMENTS
AND THEIR
FUNCTIONS
 1.Procurement and Inputs
HOW FRESH MILK GOES ?

Primary
1133 milk cooperative societies
Collect from farmers

227
Bulk milk coolers
Store milk (4ºC)
in order to maintain MBRT

Dairy plants
6 Processing
 Primary cooperative societies : 100-300 farmers
 Average milk procurement/ day : 7.5lakh liter
 Period between payment for milk and procurement of milk :
10D
 Procurement rate of milk is given on the basis quality of milk
( fat and SNF) – Electronic milk tester
 Inputs given to the farmers : roughages and concentrates
 Subsidies for mechanization
 Insurance schemes for farmer welfare
 Ksheera sadhanam – 5 lakh home for widow farmer in each district
 Ksheera saandhwanam – 20,000 (single time)
 Revolving fund - up to 50,000 for farmers having single cow
 HOW INFORMATION GOES?
HEAD DISTRI UNIT
OFFICE CT P& I
P& OFFICE OFFIC
OFFICER R ER

HEAD DISTRICT FIELD

OFFICE P& P& I OFFICER(3
OFFICER OFFICER 0)
 2.Marketing
 Activities of marketing department
 Supply management activities
 Routine activities

 Account part of marketing department

 Market development activities

 Implementation of marketing strategies

 Sales promotion activities

 Yearly plan of operation

 Marketing of milma products except milk and curd is through
dealership and wholesalers or through merchandise
 Total number of dealers : 8105
 Total number of non dealers : 15646
 Fix price for the commodity
 DAIRY PLANT

Zone (supervisor) Depots (manager)

6

Wholesale Markets
(20-30 dealers)

Retail markets Customers

Important marketing strategies
 Establishments of Parlors in  Milma elite shoppees at
schools and colleges prime cities outside
 Radio Kerala
 Shabarimala special ghee  Milma tea/coffee kiosk
 marketing depots  New product launching
 Re distribution of milk
 Installation of PUF box
 Chairman's club members meet
(>500L- 3 Ps /L)  Rural marketing campaign
 Ghee export
 Milma shoppe
 Sales campaign SALES
 Super market campaigns PERFORMANACE
 Short videos by using
celebrities
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
SOURCE : PLANNING DIARY OF MARKETING
DEPARTMENT
 3.Production Planning and QC
 Coordination of production activities in each and
every dairies under MRCMPU ltd
 Production planning
 Milk movement control
 Excess milk is given to other regions under KCMMF
according to their requirement, even if it is surplus
then it is converted to milk powder
 Cleaning and transportation contract is called by this
department
 ISO certification related aspects are mainly done
 4.Finance
 Fund source :sales of the products
 Sales return from all diaries are pooled in head office
finance department.
 Milk procurement rate is given to the primary
societies directly from the head office on every tenth
day of procurement
 Online transactions are made
 Salaries are paid through NEFT / RTGS transfer
 Audit
Following are the books of accounts maintained.
 Cash book

 Journal

 Ledger

 Bank book

 Bank payment

 Bank receipt

 Cash payment

 Cash receipt

 Profit & loss account - monthly basis from all

dairies( consolidated)
 5.Engineering
 Equipment purchase
 Related Payments forwarded to Finance

department
 Land acquisition and tax

 Maintenance of equipments

 Vehicle purchase

 Purchases are done by calling tenders

through government sites

 Responsibility of garden
 6.MIS & Systems
 Software and hardware related problems are
managed by this department
 Network connectivity related issues also handled
 Software development, testing and implementation
( based on requirement)
 Vyaya-cloud software for costing
 Data security & data management
 Number of systems under the department in the whole
operational area of MRCMPU ltd
 525 computers
 20 projectors
7. Personnel and Administration
FUNCTIONS
 Recruitment
 Training
 Transfer
 Promotion
 Dispute action
 Leave management
 Legal issues about services
 Welfare matters
 Administration related activities
 Statutory allotments like ESI, PF, Gratuity, Bonus etc
Union employees
Permanent Employees

Unit/dairy No. of employees

Head office 74
Kannur 80
Kozhikode 131
Palakkad 102
Wayanad 40
Kasaragod 30
Total 457

Number of temporary employees : 403

Total number of permanent and temporary employees : 860
Other employees are on piece rate and contract basis
 Projects
Functions
 Project related aspects (Application, implementation etc.
)
 Performance Appraisal
 Coordination of software
Projects granted from NPDD scheme
NPDD I
NPDD II SMART AMCU
NPDD III WAYANAD
NPDD IV FLOOD
NPDD V QUALITY ASSURANCE
Projects availed under Rashtriya Krishi Vikas
Yojana (RKVY ) scheme

 UHT PROJECT FOR CPD

 ICE CREAM PROJECT FOR KOZHIKODE DAIRY
 CONTINUOUS BUTTER MAKING FOR WYD DAIRY
 STRENGTHENING RURAL MILK CHILLING CAPACITY
THROUGH BMC
 LONG LIFE MILK PLANT FOR MALAYORA DAIRY
 AUTOMATIC PEDA MANUFACTURING FACILITY FOR
WAYANAD DAIRY
 CONDENSED MILK PLANT FOR WAYANAD DAIRY
 ICECREAM DISTRIBUTION FACILITY
 ICECREAM MINI SHOPEE FOR SCHEDULED CASTE
Projects granted from Govt. of Kerala

 ANNUAL PLAN I
 ANNUAL PLAN II
 HADA
 ANNUAL PLAN III

NDDB projects

 VBMPS III
 VBMPS IV
MONTHLY MEET AND NEW YEAR CELEBRATION
DAIRY PLANTS VISITED & CATEGORIES
OF GOODS PRODUCED

KOZHIKODE DAIRY CENTRAL PRODUCTS DAIRY

 Ghee biscuit
 Homogenized milk
 Idly / Dosa batter
 Curd  Flavored milk
 Ice creams  Golden milk
 Golden mix
 Sip up  Palada mix
 Yoghurt  Palada pradaman-ready to
drink
 Skimmed milk powder  Peda
 Ghee
KOZHIKODE DAIRY CENTRAL PRODUCTS DAIRY

 Number of Employees: 198  Number of Employees : 92

 Number of Societies Pouring: 445
 Number of Agents: 1655 Located at Naduvattam,
 Average Procurement: 117367 Kozhikode Commissioned on :
 Average Milk Sale: 118780 18 kms 04.10.2009

The new Kozhikode dairy plant Market Area (for Long Life
was commissioned in 1995, in Products) : Entire area of
place of the old dairy plant, operation of MRCMPU Ltd
which was functioning from
1965 at Beypore, near
SUNDAYS ARE
Kozhikode city
HOLIDAY
DURING CENTRAL PLANT PRODUCTS DAIRY VISIT
 Blending of Ingredients

Pasteurization
Production process of Ice cream
Homogenization

cooling

Aging (15 hrs AT 4ºC)

Partial freezing

Flavor Adiition

Packaging

Hardening

Frozen storage

ICE CREAM
 MILK

Production process of Ghee WARMING AT 40ºC TO 50ºC

CREAM SEPERATION

CREAM (60-70 % FAT)

GHEE BOILER

BOILING AT 114±2°C

CLARIFIED FAT AND CURD (90-100ºC)

FILTRATION
Seeding
with
NATURAL COOLING OF GHEE TO 50ºC grains of
ghee at
GHEE SETTING TANK the rate
of 2% by
GHEE
weight
FINANCIA
L ASPECTS
 MANUFACTURING AND TRADING A/C
Debit particulars Amount Credit particulars Amount

Opening stock 150,931,755.63 Sales 11,396,223,428.50

Purchases(raw material) 9,138,654,413.40 Stock transfer out 2,876,417,311.68

Stock transfer in 2,876,417,311.68 Other sales 20,953,107.50

Procurement expenses 207,048,533.16 Closing stock 140,404,740.97

Manufacturing expenses 331,200,834.92

Taxes and duties
Contribution and other
consumptions

Selling expenses 645,160,579.56

Total 13,349,413,428.35 Total 14,433,998,588.65

Gross profit 1,084,585,160.30 Gross loss

Grand total 14,433,998,588.65 Gross total 14,433,998,588.65

 PROFIT AND LOSS A/C
Expenditure Amount Income Amount
Establishment charges 539,010,024.17 Gross profit 1,084,585,160.30

Contingencies 477,759,266.44 Miscellaneous income

Depreciation 142,729,906.10 (A) other sales 50,790,865.11

Expenses obj. And
reserves created 1,655,653.72 (B) other income 8,927,837.79
Sales promotion (C) interests and
expenses 6,366,392.39 dividends 58,776,035.18
Interest on NDDB and (D) excess reserves
& others 32,091,369.00 removed
Carriage outwards-milk
Taxes and duties
Provisions

Total 1,199,612,611.82 Total 1,203,079,898.38

Net profit 3,467,286.56 Net loss

Grand total 1,203,079,898.38 Grand total 1,203,079,898.38

 Cash flows of Last 3 years
Year Cash outflow Cash inflow Net cash flow

2017-2018 12,769,824,054.00 12,820,031,939.00 50,207,885.00

2018-2019 13,098,459,550.00 13,117,881,082.00 19,421,532.00

2019-2020 14,545,493,778.00 14,548,961,065.00 3,467,287.00

SWOT Analysis

STRENGTH
 Brand popularity

 Highly established system for procurement and also for sales

 Diversity in products

 Milk is procured 2 times daily

 227 BMCs to maintain MBRT

 Administration of the union is by the farmers of the farmers and

for the farmers

 Well established marketing system

 Experienced employees

 Devices to check quality of milk in every primary milk collection

centers
WEAKNESSES
 Increased milk procurement rate given to the farmers
 High cost of production
 Large marketing channel
 Unable to meet the demand in rural areas for some
products
 Sophisticated paper works
 Low merchandise share on price of the milma products
when compare with similar products of other companies
 Low coordination among the different departments
OPPOURTUNITY
 There are lot of wastelands, which can be used properly for
fodder cultivation
 Can increase export potential for indigenous milk products
 Increased demand for dairy products other than milk in
townships, villas, colonies and apartments
 Increased milk production
 Purchasing power of consumer is increasing with growing
economy of middle class people
 Increasing demand for milk production since milk consumption
is a regular part of our diet.
 Large number of commercial and hi –tech farms are coming up
THREAT
 Increased competition
 Increased milk supply from other states
 FMD diseases are increasing
 Fragmentation of land
 Liberalization
 Severe floods affected in Kerala
 Increased milk production
 Corona effect
THANK YOU