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India is the world`s largest milk producer. As India enters an area oI economic
reIorms particularly, live stock sector is positioned to be a major growth area. The Iact that dairy
could play a more constructive role in promoting rural welIare and reducing poverty is
increasingly being recognized. In the late sixties, the National Dairy Development Board
(NDDB) drawn up a project called Operation Flood, meant to create a Ilood oI milk in India`s
villages with Iunds mobilized Irom Ioreign donations. Producers cooperatives which sought to
link dairy development with milk marketing were the control plans oI this projects. As part oI the
second operation Ilood, TRCMPU Ltd was registered on 31 May 1985 under TRCMPU.
Milma is one oI the major milk dairies in Kerala. It has a very high growth in
Kerala. Other than milk, they have many by-products oI milk which are also very successIul in
the market.
The organizational study at Milma conducted as part oI the MBA
program is steam lined to have a Iocus on the major trends and practice prevailing in today`s Iast
paced business environment. Organizational Study is the area where we put our theoretical
knowledge understudy with an organization to Iind out its overall working. Organization Study
helps to learn about the origin, growth and development oI organization. It helps to understand
the structure and Iunctions, to study the work culture oI the executives and the workers, to make
awareness about the role oI each department and analyze the quality policy oI the organization.
The Organizational Study conducted by me about the Milma Kollam Dairy. Milma has an
excellent reputation among the common people .In Iact, there is no one around who does not
know about Milma. Milk and its products are nearly used by everyone in Kerala.


Milk and milk based industries play a very important role in the world.
Internationalization reminds a key Iocus Ior almost oI the world`s leading dairy Iarms. All the
world`s largest dairy Iarms operating more than one country and some oI them are truly
international with activities in every part oI the world. The availability and distribution oI milk
and milk products, in the modern world is blend oI the centuries old knowledge oI traditional
milk products with the application oI modern science and technology. Diary is a place where
handling oI milk and milk products done.
In developed dairying countries, the year 1850 is seen as the dividing line between Iarm
and Iactory scale production. The rural areas were identiIied Ior milk production where as the
urban centers were selected Ior the location oI milk processing plants and product manuIacturing
Iactories. These plants and Iactories were rapidly expanded and modernized with improved
machinery and equipment to secure the various advantages oI large scale production. BeIore
1900, nearly all the milk was delivered as raw milk. Milk was Iirst delivered in bottles on
January 11, 1878.Once pasteurization was introduced, it developed rapidly. Mechanical
reIrigeration helped in the rapid development oI the Iactory system oI market milk distribution.
A doubling in the price oI wholesale milk over the past year is creating havoc among
Iood manuIactures, prompting warning about the Iood price inIlation in U.K .Aid organizations
have also raised concerns about the depletion oI government stockpiles oI milk power.
In the western world today, cow milk is produced on an industrial scale. It is by Iar the
most commonly consumed Iorm oI milk in the world. Commercial diary Iarming using
automated milking equipments produce the vast majority oI milk in the developed countries.
The Iollowing are the major global players in this Iield,
Nestle (Switzerland)
Dean Foods(USA)
KraIt (USA)
Dairy Farmers oI America(USA)
Fonterra (New Zealand)
Danone (France)
Parmalat (Italy)

Arla (Denmark)
Nevertheless, in spite oI these players, India is the largest producer oI dairy products
and milk Iollowed by USA and China.
Indian scenario
The dairy sector in India has shown remarkable development in the past decay and India
has now become one oI the largest producers oI milk and value added milk products in the
world. The dairy sector has developed through co-operatives in many parts oI the state.
During 1997 1998 the state has 60 milk processing plants with an aggregate processing
capacity oI 5.8 million litres per day in addition to these processing plants, 123 government and
33 co-operative milk chilling centers operate in the state.
More than 2445 million people economically active in agriculture in the
world.probably2/3 or even more / oI them are wholly or partially depended on livestock
Iarming. India is endeavored with rich Ilora and Iauna and continuous to be vital avenue Ior
employment and income generation, especially in rural areas. India, which has 66 oI
economically active population engaged in agriculture. In India the market milk technology may
be considered to have commenced in 1950, with Iunctioning oI the Central Dairy oI Aarey Milk
Colony and milk product technology in 1956 with the establishment oI Amul Dairy, Anand. The
industry is still in its inIancy and barely 10 oI the total milk production undergoes organized
India achieved the distinction oI becoming the world`s largest milk producer in the year.
The milk production in India is over 110million tones with Utter Pradesh leading the highest
among Indian states. Started in 1970, the three phases oI Operation Flood have pushed India`s
milk Irom 21 million tones to 110 million tones in 2008.The growth in the milk deIinitely
surpassed the growth in grains and cereals and today milk is India`s number one Iarm produce
worth Rs 1,00,000 crores annually.
In spite oI being the World`s milk producer, India`s milk processing industry is not very
large. Only 12 oI milk is delivered to dairies against the world average oI 70. Bulk oI Indian
milk is utilized Ior drinking or in the unorganized sector processing industry can be divided in to
three segments
O overnment/ Semi government
O Co-operatives

O Private sector.
With expectation oI a Iew units, the processing industry is largely involved either in a liquid
pasteurized milk oI conversion oI milk to milk powder and ghee. Most domestic processor does
not have the quality or the marketing knowledge to access the international market.
In India, majority oI the milk market remains with the co-operatives which were Iormed under
Operational Flood all over India. The Milk Marketing Federations and its aIIiliated Districts
Milk Unions control majority oI the milk market in the organized sector.
The major brands in India are
O Amul (ujarat)
O 'erka (Punjab)
O Milma (Kerala)
O Nandini (Karnataka)
O 'ijay (Andhra Pradesh)
O Aavin (Tamilnadu)
O Parag (Maharashtra)
O Mother Diary (Delhi)
There are Iew other major private companies which are in the IoreIront oI the diary product
marketing such as Britannia, Nestle and Cadbury etc. New international players such as Anchor
Fonterra, Compina, Landolakes etc are expected to enter the Indian market within a short period
oI time.
Indian diary sector is said to witness a number oI new alliances and partnerships. Consolidation
is already taking place in the market with Mother Dairy entering into the joint ventures with the
various state co-operatives and Britannia in tie-up with Fonterra etc. Overall the Indian industry
is experiencing an upheaval with the new products launches, repositioning oI brands and entry oI
newer players.

Operation Flood
During 1960`s milk production in India was concentrated only in rural areas. In ujarat the
Iarmers owned Co-operative Societies Iormed namely Anand Milk Union Ltd (AMUL). It was

mainly integrated in production, procurement and processing and marketing on Co-operative

Operation Flood was launched in 1970 and the main objective oI the program was to increase
the milk production in rural areas and to supply the excess milk to the nearest dairies. Operation
Flood was introduced under National Dairy Development Board (NDDB) which Iunctions as the
technical consultant. This NDDB was stated under the Societies Act and these societies are
known as Anand Pattern Co-operative Societies (APCOS). These societies get Iinancial aid Irom
Indian Dairy Corporate.
Operation Flood is intended to reduce regional imbalances in dairy development in
underdeveloped regions. It was a remuneration linking oI rural milk procuring centers with urban
demand centers.
The various phase oI Operation Flood include;
First phase aims at the procurement oI milk Irom rural surplus areas to the urban
deIicit areas.
Second phase was started during 1980`s its outlay was 29 crores and was utilized
Ior the construction oI dairies. Kerala was included in the second phase oI
Operation Flood.
Anand Pattern
A success story on the dairy scheme in India during the sixties was the Iarmer owned
Amul co-operative in Anand (Khaira district, ujarat) with its integrated approach to production,
procurement, processing and making on co-operative lines. Over the years this evolved in to a
model based on selI-rule by Iarmers ensuring maximum returns to them.
This model came to be known as Anand pattern. The eIIiciency oI this model was worth
replication. There Ior a dairy programme called 'OPERATION FLOOD was launched in 1970
under the aegis oI National Dairy Development Board (NDDB)

ANAND Pattern is a 3-tier structure consisting of
'illage level primary co-operative society called 'APCOS
Regional co-operative milk producers union
State level milk marketing Iederation

erala Co-operative Milk Marketing Federation CMMF)

erala Co-operative Milk Marketing Federation CMMF), popularly called
Milma was established in April, 1980 with its Head oIIice at Thiruvananthapuram Ior the
successIul implementation oI Operation Flood (a dairy program launched in 1970 under the aegis
oI National Dairy Development Board (NDDB).

The name MLMA represents:-
O 2678 primary milk co-operative societies
O 8.31 lakh Iarmer members
O Three Regional Co-operative milk producer`s union
O Thirteen Dairies capable oI handling 12 lakh liters oI milk per day
O Ten Milk Chilling Centers
O Two Cattle Feed Plants with cumulative capacity oI 600 MT per day
O One milk powder plant oI 10 MT per day capacity
O A well established Training Centre
O 5200 retail outlets
O Over 32000 people working either directly or indirectly Ior the Iunctioning oI MILMA

A part Irom these the company serve millions oI consumers day-in and day-out
The Motto oI Co-operation oI of the people, by the people and for the people is the Ioundation
oI the "three tier system" Iollowed by the organisation. At the village level we have the 'illage
Milk Co-operative Societies which have the local milk producers as its members. These 'illage
Co-operatives unite at the Regional level and Iorm Regional Co-operative Milk Producers'
Unions. These Unions are Iederated at the State level to Iorm State Federation namely erala
Co-operative Milk Marketing Federation CMMF).

Milma is in constant touch with other Organisations in this sector. It is only through this active
exchange that milma grew Irom a small dairy co-operative to the position it holds in Kerala
cheif associates are:-
O National Dairy Development Board
NDDB, under Dr. ' 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 oI the Operation Flood Programme and have been our Iunding agent Ior the
Operation Flood Projects in Kerala.
O Amul
The Dairy Co-operatives oI ujarat have been the inspiration Ior the development oI
such a vast network oI dairy co-operatives in Kerala. Among the co-operatives in
ujarat, the Kaira District Co-operative Milk Producers' Unions (Amul) is the the Iirst in
this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies"
Iollowing the illustrious lineage oI "Amul".
O overnment of erala
The Phenomenal success oI the Dairy Co-operatives in Kerala could not have been
achieved, without the Ioundation oI animal husbandry activities, led by the Animal
Husbandry Department, Dairy Development Department and Kerala Livestock
Development Board, oI the overnment oI Kerala.


Milma Kollam Dairy was established in 1985 as milk chilling plant in Thevally, Kollam
District and later it was developed in to a milk processing plant. This is an ISO 9001:2000
certiIied company. It was Iunctioning under the THIRU'ANANTHAPURAM REION CO
Dairy has a processing capacity oI more than 1 lakh litres oI milk per day. It consists oI eight
departments and a dairy manager who is in charge oI managing all activities oI this unit. There
are 25 oIIicers and 140 permanent employees and 60 temporary employees are working day and
night in the dairy in 3 shiIts. The main product oI this dairy is milk (Milma Smart & Milma
Rich) and also they producing Milma hee (AMARK), Milma Curd, Milma Sambharam and
various other products like butter, ice cream, peda, etc. brought Irom other dairy Ior sale in
Kollam. Milma has a lengthy product line in the market. In these, many oI the items are market
leaders in their segments and they hold a very big market share. hee produced Irom the Kollam
dairy has acquired ISO 9000 certiIication. Quality` is the key word oI Milma. Now Milma
serves a thousand oI customers in and out.

"1o ensure prosperity through milk- be it for the producers or the consumer".

"Farmer 's prosperity through Consumer satisfaction"
"Your health is our concern"

The Objectives
O To channelise marketable surplus milk Irom the rural areas to urban deIicit areas to
maximize the returns to the producer and provide quality milk and milk products to the
consumers .
O To carryout activities Ior promoting Production, Procurement, Processing and Marketing
oI milk and milk products Ior economic development oI the Iarming community.
O To build up a viable dairy industry in the State.
O To provide constant market and stable price to the dairy Iarmers Ior their produce.

Quality Policy
Kollam dairy is committed to conIirm to requirements to enhance satisIaction oI
customers & producers by providing consistent quality products and services. They strive Ior
environmental care and market leadership through eIIective implementation and continual
improvement oI quality management system.
Product Profile
The products oI Kollam Dairy are,
Milma hee
Milma Curd
Milma Sambharam
Kollam dairy mainly produces two types oI milk on the basis oI Iat including in it. They
O Milma Smart
O Milma Rich Plus

Milma Smart
Milma Smart contais 1.5 Iat and 9 SNF (Solid-Not-Fat). It is used Ior several
domestic and non domestic purposes. It is available 500ml packets.
Milma Rich Plus
Milma Rich Plus contains 3.8 Iat and 9.0 SNF. This is most suitable Ior those
requires comparatively more energy such as growing children, women, etc. this variety much
proIitable Ior hotels, canteens, catering services, etc. It is mostly suitable Ior making desserts,
paneer and such other sweets. The maximum retail price oI Milma Rich Plus is Rs. 13. It is
available in 500 ml packets.
Milma hee
A product oI high demand and quality. Milma hee is produced Irom pure milk cream.
Milma hee also possesses AMARK certiIication which no other similar production have yet
obtained. Milma hee is available in 50gm, 100gm, 200gm, 1kg, 15 kg as per the customer
Milma Curd
Milma Curd is produced Irom pasteurizing skimmed milk using curd culture. It has 9
SNF contents. Milma Curd is available 500 ml packets.
Milma Sambharam
The best drink to quench our thirst produced Irom diluted curd and other ingredients such as
chilly, salt and curry leaves and without adding chemicals or preservatives. It is available in 200
ml packets. The maximum retail price oI Sambharam is Rs. 3.50

Other products like Butter, Chocobeats, Drinking Water, Ice candy. Mango, Milk Cream,
Palada Mix, Paneer, Peda, Ice Cream, etc. are brought Irom other dairies Ior sale in Kollam



This department is headed by the assistant manager. Under assistant manager there are
veterinary oIIicers, milk procurement oIIicers and oIIice staII. OIIice staII takes care oI accounts,
establishments and sales and attendance. Milk procurement oIIicer is assisted by assistant milk
procurement oIIicer and by senior and junior supervisors. There are two veterinary oIIicers Ior
input divisions and 10 supervisors that Iorm the core oI this department. Procurement and input
department consist oI 22 employees. This department mainly deals with
O Procurement oI milk Irom the producers and provide suIIicient input to the
O WelIare measures to the milk producers
Milk Procurement
Milk is procured on the basis oI A P C O S (Anand Pattern Co-operative
Societies) Pattern. In Kollam dairy there are 266 aIIiliated A P C O S. The milk brought by the
Iarmer is readily accepted by the society which in turn is sent to the dairy Ior processing. The
producers are paid milk value based on quality i.e., in terms oI Iat and solid portions oI the milk.
The equipments, chemicals and machines required Ior checking the quality oI milk samples are




given Irom the co-operative unions. The milk can and other utensils required Ior collection oI
milk is also given Irom the union.
P & I department are providing supervision to 199 societies. Milma collect milk Irom
these societies twice a day, i.e. morning and evening. Milk routes are designed which will
operate within the prescribed time. Each truck is given a speciIic time Ior arrival and departure
Irom each society and also time oI arrival at dairy dock. There are 17 milk routers in which three
are tanker routes. Once in every ten days payments are given to societies. They make weekly
payments to milk producers.
In units milk is manually measured. Milk procurement per day is one lakh litters which
contains 3.8 Iact and 8.25 SNF. Milk is bought to the dairies with he help oI vehicle Ior
which transportation charge are paid. They have established bulk milk chilling unit at 11
APCOS. Each centre 5000-3000 capacity tankers to collect milk Irom other societies. From these
centers the milk transported to the dairy through tanker lorries. There are 7 supervisors Irom P
& I.
Procurement and input department is providing technical inputs in service Ior milk
production. They are providing veterinary Iirst aid service Ior societies. They arrange training Ior
society staIIs.
They also arrange cattle Ieed supply to milk producers through societies. They
render emergency veterinary services through decentralized veterinary units, 10 veterinary
doctors are appointed on contract basis. 'eterinary doctors are also doing artiIicial insemination
Production enhancement activities are also done at these societies like:
O Mastitis control activities
O De worming oI cow, heiIers & mulch cows
O Cattle insurance program
O Production enhancement camps
O Urea treatment oI paddy strew
O Seminars as per their requirement

elfare measures of the milk producers

Several welIare measures also provided to the milk producers in order to motivate them.
These welIare measures include:
Women selI- help group at societies Ior developing their skills and economic
Financial assistance is given to active milk producing members Ior higher education Ior
their wards.
1. Active milk producing members should supply minimum oI 180 days or 500 liters
every day consecutively Ior two years. Scholarship are provided to their children.
2. In case oI death oI active member, the unit Iinancially helps his/her Iamily with
certain amount oI money or by giving job to one oI his/her Iamily member.
3. Insurance is given associated to HDFC, HUB.
4. Bank loans were arranged to Iarmers to buy cow, Iodder cultivation etc.,
5. Milking machines are given to Iarmers with 50 subsidy.
6. Equipments & chemicals are supplied to societies Ior their use in society while
collecting milk.
7. Fodder seeds are supplied to Iarmers through societies.
Important records maintained in the department are payment registers oI milk transport
contractors, distance certiIicates registers, procurement cost analysis register MIS Iiles, etc.

1 No. oI Apcos registered(Cumulative) 266

No. oI Apcos Iunctional
3 No. oI Apcos pouring milk 199
4 No. oI Apcos under super vision 199
5 Total milk collected by Apcos 1644632
6 Total milk supplied to dairy by Apcos 809073
7 Total Transportation cost including tanker hire
charges paid Ior BMCC trips
8 Total milk collected by cans plus tanker 861899
9 Cost per litre oI milk procured 0.98
10 No. oI societies started suppling milk in the month 0
11 Farmer members in the Apcos 63541
12 Members supplying milk to Apcos 8194
13 No. oI cases treated by Dvu Doctors 751

14 No. oI Dvu units Iunctional 10

15 total service charge paid to Dvu doctors 132300
16 Total service charge collected Irom producers 49490
17 Average quality oI milk (Iat and SnI ) 4.4/8.21
18 Milk procured (Ltr/day) 28730
19 Milk received Irom Apcos (Ltr/day) 26183
20 No. oI non Apcos pouring milk 13
21 Milk received Irom non Apcos(ltr/day) 1761
22 Apcos procurement pattern
No. oI Apcos supplying less than 100ltrs 37
100-200 Ltr 61
200-300 Ltrs 34
above 300 Ltrs 67
23 Procurement transportation cost
Actual milk transported in am shiIt/
max load oI all vehicles(513063/966000)

Actual milk transported in pm shiIt/

max load oI all vehicles(348836/966000)
24 Emergency treatment
No. oI cases 751
Cost oI medicines 26322.34
Service charge 132300
Total cost 109132.3
Cost/case 145.32


The production department is headed by the Production Manager Iollowed by an
Assistant Manager, Technical OIIicers, Technical Superintendents, Operators/ Technicians, and
Plant Attenders.
O Design and development oI production process
O Planning and control oI production process.
O Implementation oI the plan and related activities to produce the desired output.
O Meeting the sales requirements.
O Maintaining the Plant Accounts.

Assistant Manager (Production)
Technical OIIicer
Technical Superintendent
Plant Operators
Plant Attenders
Manager (Production)


O To produce the required quantity oI milk, in time Ior delivery.
O Resources are disposed in the best possible manner.
O To select most eIIicient and economical method to perIorm the operation.
O To Iind the most appropriate method oI perIorming various operations involved in
The Kollam dairy mainly produces:
The work oI production department starts Irom the milk is collected Irom the APCOS.
The milk is collected both morning and evening. There are three shiIts operating in production
department. The morning shiIt is Irom 7 am to 3 pm and the evening shiIt is Irom 3 pm to 11pm.
The third shiIt is operating only Ior reIrigeration.








In this section milk is collected Irom diIIerent APCOS is brought in to the Diary
and it is received at the reception section. The milk is pumped through the pipes and taken in
to the Raw Milk Tank (RMT).There are 2 RMTs with a capacity oI 15000Ltr and a SILO
tank with capacity 30000. BeIore the milk is poured in the tank, it is tested to ensure that the
milk procured is good. The milk Irom each society is weighed electronically and samples are
taken Ior the purpose oI determining quality and price. The quality oI milk is checked by
using lactometer.

Milk Chilling
In this section the collected milk is stored in a Raw Milk Tank and is chilled to 4C to keep
the milk clean in all scenes. It helps to prevent spoilage. This is been done by passing the
collected milk through the chillers where plates are arranged in a special manner through

which milk be passing to one direction and in the opposite side oI the plate chilled water will
be streamed in the opposite direction.

There are two types oI processing:
Pasteurization is the process oI heating every particle oI milk to at least 72C Ior 15sec in
approved and properly operated equipment. AIter pasteurization, the milk is immediately cooled
to 5C or below to kill the pathogenic organisms.
In this process the milk is transIormed through a container which consists oI steel plates.
This container is divided in to heating section and cooling section. This milk chilled at 4C is
transIormed in to the container and heated to a maximum temperature oI 72C Ior 15 seconds.
Then rapidly cooled below 5C and then stored. In this pasteurization process there include other
activities like Iiltration in which the small particles like hair, dung particles etc. are Iiltered.

In this process it is seen that the quality oI milk is attained according to PFA standard
Iixed. For this the milk is taken as samples and tested to see the amount oI Iat and SNF
are above this level. For toned milk there should be 3 Iat & 8.5 SNF. The excess Iat
is separated and used other purpose. All the other test regarding the quality is taken into
consideration and then the process oI cream separation is done.
The cream Irom the milk is separated and is used Ior other byproduct production and the
separated milk is stored in the 4 Pasteurized Milk Tank (PMT) tank, which has a capacity
oI 15000Ltr/tank and also stored in 2 SILOs which has a capacity oI 60000Ltr/silo.

The stored milk is then passed out Ior packaging. In which milk is packed in halI liter
packet. For these highly sophisticated and newer technology machines are used Ior this
purpose. The sachets are Iormed Irom a reeled Iilm over a shoulder and tube Iorming
sealer. Their size is changed simply by pushing a button without stopping the machine.
The packaged milk is collected in trays, each tray should contain 26 packets or sachet oI
Final Storage
The milk so packed are then stored below 7C. This is done so as to maintain the
temperature until dispatched.
The milk is then dispatched to the various booths in the morning and in evening, through
contract vehicles. Production supervisor, marketing staII and security staIIs are associated with
dispatching Ior proper supervision.

Processing of Curd
Curd in actually made Irom skimmed milk. The Iat content will not be more than 5.
The skimmed milk heated to 50C and skimmed milk powder is added to it to get 9 SNF. It is
then held in child water. At room temperature 2 culture is added to the skimmed milk culture
usually used is streptococcus, tactus, cremorue, etc. The incubation period oI good culture 7-8
It is then Iilled in to 500 ml packets and is placed in chilled water. AIter 5-6 hours the
curd is shiIted to the chiller. The curd is then tested Ior Iat, and SNF and total solids. AIter the
examination by quality controlled department, it is dispatch Irom the dock.

Processing of Sambharam
Curd is thoroughly agitated and to it equal quantity oI chilled water is added. Small
proportion oI chilly, ginger, salt and curry leaves are added and mixed. The sambharam is Iilled
in packets and kept in cold storage. It is later dispatched Ior sale.


Purchase and stores department ensure timely availability oI all other material other than
milk powder, veterinary medicine and procurement and input items as per needs speciIication oI
user or customer sections.
The department covers packing materials, machine spares lab chemicals, re agent
and apparatus, electrical items and spares and capital equipment.
Kollam dairy maintains list oI approved suppliers Ior regularly purchased
materials and evaluate their perIormance on the basis oI criteria deIined. The criteria should
speciIy quality, delivery schedule, price, etc. subsequent to re-evaluation oI suppliers, those who
are not perIorming well are detected. New suppliers are also added to the approved list oI
Order is prepared in the prescribed Iorm by the concerned store keeper or purchase
assistant. Purchase order should have detail quantity, speciIications and standards, price as
applicable and other terms and conditions and is reviewed and approved by the oIIice in charge
oI purchase and stores.
Purchase procedure is initiated aIter the receipt oI purchase section in the
prescribed Iormat duly approved by the section head. Purchases are made directly Irom local
market or available sources.
The quotations are invited Irom known manuIactures or suppliers. The quotations
thus received are tabulated and send to head oIIice with recommendations.

Assistant Manager
Clerical staII


The Engineering and Maintenance department is headed by the Manager under him
comes Deputy Engineer and Technical Superintendent. Then comes various technical assistants.
The department is concerned with the maintenance oI the various plants, both annual and
periodic maintenance is carried out, provide spares and items to technicians and smooth
Iunctioning oI the plants.
Maintenance department has various plants.
a) Boiler
b) EIIluent Treatment Plant
c) Electricity substation

Deputy engineers
Filling Section Boiler Section enerator
Milk Filling Product Filling Operators Operator
Maintenance staII

a. Boiler Room
There are two boiler units which are closed steam vessels, generating steam used Ior
pasteurization, can washer unit, tray washing and ghee melting. The boiler used in Iire tube
boilers and have a 2 ton steam capacity per hour. Furnace oil, water and electricity are the main
constituents used. The boilers are licensed under the explosives Act. The boilers are inspected
regularly and periodic maintenance is carried out. One oI the two boilers is used as stand by
which is used when the other have some problem. The boilers have been acquired Irom the
Industrial Agricultural Engineering Company.

b. Effluent Treatment Plant:-
It processes the water oI Kollam dairy. Wastes like water, milk, chemicals, involving
acids and alkalis are processed. Through a series oI processes and steps, the waste is precipitated
by the agitation oI the waste water by an agitator. The precipitated sediment is separated Irom
the water and dried. This water is let out into the Ashtamudi lake. The dried sediment is cleaned
Irom the tank once in a while. The pollution control board and the public laboratory observe the
plant and check Ior toxic wastes. The eIIluent treatment plant works all 24 hrs a day.
c. Electricity Substation
The Kollam dairy also possess an electricity substation maintained by the dairy. The
transIormers capacity is 315 K'. 400 K'A is used when there is no KSEB supply. The
maintenance department also looks aIter the maintenance oI Dairy vehicles and the plant.
Periodical inspection and maintenance is carry out in the substation on a regular basis and spares
are obtained Irom the stores department.


Marketing department is headed by the manager and he is assisted by the assistant
manager, marketing oIIicer and his assistant and his Iield staII.

The marketing department mainly looks aIter the pulse oI the market. It Iinds out the
requirement and Iills it does it by conducting marketing research Irequently thus keep in touch
with the selling oI milk and its products. Selling actually involves the tackling oI a number oI
problems such as advertising, Iacing competition, creating demand Ior new products and
supplying goods at the right time at the right place.

Marketing OIIicer
Asst. Marketing OIIicer
Marketing Organizer
Marketing Assistants
Marketing Apprentice

Marketing of Milma
The organization has been pursuing a production oriented strategy Ior several years due to the
monopoly in pasteurizing milk in market. In Kollam & Ernakulam regions there are Iew competitors.
Milma is having strong and eIIicient marketing teams in each region.
There are mainly two distinct system oI milk distribution in Kollam district under the
organization. Firstly the manuIacturer directly the milk to the consumers through the booths and secondly
the manuIacturer supply to the retailer and then to the consumer. At present they are supplying milk
through 21 various routes with the help oI vehicles hired on an annual contract. The company is
distributing three types oI milk, toned milk, double toned milma and Milma rich. The supply is done in
two times daily.

The distribution area oI Kollam dairy covers the entire Kollam district, majority area oI
Pathananmthitta district, a part oI Aleppy district which includes Kayamkulam, Chengannur, and
Mavelikkara and a part oI Trivandrum District which covers Attingal, 'arkala etc.
Kollam dairy distributing milk and other products. There is a exclusive marketing store Ior marketing
department, products are stored here other than milk. There is a selling outlet Ior the sales oI milk
directly to customers. Some products are imported Irom other milma dairies Ior sales in kollam.
Chocolate, ice cream, are Irom Trivandrum dairy and mango juice, drinking water, Ilavoured milk are
Irom Alleppey dairy.
The retail agent`s speciIic their requirement oI milk and paying the money in one day advance at the cash
counters oI the dairy. The wholesale agents pay at the time oI the receipt oI the dispatch. The stall remits
their daily collection oI sales to the dairy bank accounts. The next day payments Irom private hotels are
made advance payments on average by a month.

Sales promotion
Sales promotion is an organized eIIort applied to the selling job to the greatest eIIectiveness Ior
advertising and Ior dealers help. Sales promotion has become a necessary part oI marketing activities Ior
a Iirm like Milma. Now days in Kollam dairy use some oI the promotion tools and techniques. Since the
demand Ior the product is good sales promotion can bring about Iavorable result Ior the Kollam
dairy.Some oI the promotional activities are; To help the agents to provide to door to door service to the
consumers, Milma given Rs. 1000/- Ior the procurement oI cycle to each agents. The top 5 agents who
sell the maximum milk is given Rs. 5000/- Ior purchasing a Ireezer. The agent has to make the purchase
and bill is show to the dairy.
For the other products an oII season discount is given to the products like ice cream, ghee etc.
Compared to other products oI Milma they are not giving much advertisement to milk but they
are using the banners, posters and sign boards. They are having their stalls in the exhibitions.
1800 agencies are Iunctioning in Kollam. Agency is given 4 commission on milk on a
minimum retail price. The agents have to give the dairy cash one day in advance i.e. cash remittance on
the previous day oI the milk collection, no credit Iacility is given to the agents. Super markets like
Supreme, Dhanya, is given check Iacility. Credit Iacilitity is given to sub jail in Kollam and some
residential schools. The milk has an average sale oI 120000 litre/day, ghee has an average sale oI
26000kg/month, sambharam has 4000 litres/month and curd has an average sale oI 55000 litre/month.
The cash collection in the Iollowing ways:
O Direct Cash remittance
Agents directly given cash in the counter between 9.30 am and 3.30 pm

O Route Cash
There is a cash box in the vehicle. the agents Iill in the invoice and put both cash and invoice in a
cash book/.According to the number oI packets mentioned in the invoices, the milk is sent to the
next day through the vehicle.

Milma Products
Milma include the marketing oI these products:
O Milk
O hee
O Butter
O Sambharam
O Milk Cream
O Curd
Toned milk: 3 Iat, 8.5 SNF pasteurized and homogenized and presented in 500ml and 1 ltr sachet.

Milma rich: 3.8 oI Iat 9 SNF. Pasteurized and homogenized and presented in 500ml sachet.
hee: Fat Irom cow`s milk, Iree Irom added Ilavor or color or any other additives. It is presented in 50 &
100g tins, 200 & 500g sachet and pet jar.
Butter : Salted and plain varieties and is presented in 100g 200g 500g packets and
Sambharam: Fat Iree traditional thirst quencher added with chilly, ginger presented in 200ml sachets.
Milk Cream: Ice cream made Irom milk and cream Irom chocolate, mango, pineapple, strawberry, Ilavors
chocobar and butter scotch presented in 50 ml, 100ml, cup and also 4 liters pack.
Curd: Iat Iree, thick and uniIorm and is presented in 500ml sachet.

Main Competitors of milma are:

Millk : CA , AI , Shakthi
Butter: Amul, Nambeesan, Vijaya
hee: R, Ambadi, Nambootiri

Important book and records maintained in the department are credit suppliers register, agency
document, institution document, registers oI institution, supply details, complains register, etc


The department is headed by the accounts manager and he is assisted by the assistant
manager, junior superintendent with senior and junior assistant and oIIice attenders at the lower
This department deals with Iinancial aspect oI the organization. Finance and accounts
department prepare annual budget, balance sheets, estimating the source and application oI
Iunds. Its main duty is procurement oI Iund and determination oI the sources oI Iund and
utilization oI procured Iund.
The Iinance and accounting department has 5 Iunctions. They are,
a. Finance Iunction
b. Accounting Iunction
c. Budgeting Iunction
d. Auditing Iunction
Accounting OIIicer
Jr. Superintendent
Sr. Assistant
Jr. Assistant
Assistant Manager

e. Reporting Iunction

Finance function
The Capital Ior the organization is provided by NDDB. This organization is given shares to only
the member Iramers oI the societies and the share value is paid as dividend Irom the proIit. The Iund
needed Ior the requirements oI the dairy is provided Irom the head oIIice. For each 15 days the diary
sends a statement including their requirements to the Managing Director. AIter receiving the statement,
required Iund is transIerred Irom the account oI head oIIice at Indian bank to the diary`s account at
Canara Bank
Accounting Function
The accounting system in the dairy is the double entry system. All the transactions are
computerized. Trail balance and ProIit and loss accounts are prepared monthly. A uniIorm account system
is designed according to the NDDB. Separate books are maintained Ior each item.
Auditing function
The section is computerized, hence auditing is an easy task. There are three types oI audits
internal audit and statutory audit. Internal audits reports are prepared quarterly and presented to the board
oI directors. overnment does the statutory audits and there remuneration is paid by the union. Statutory
audit is done once in every year and the report is submitted to the general body.

Budgeting function
The budget is prepared every year considering the procurement, sales, increment in salary and
other expenses. Budget is prepared on the policies set by the KCMMF. All the payments and allocation oI
Iunds to the other department are strictly on the basis oI budgets. Each department iI needed to be
renewed should check the amount allocated to each department. The budget prepared is submitted to the
general body and get approved. Budgets are prepared considering the annual turnover.
Reporting functions
All the above Iunctions such as Iinance, accounting, auditing, and budgeting are make as a
detailed report with supporting documents. This report is submitted inIront oI the Board oI Directors Ior


Quality control department is headed by quality control manger, under him there is
quality oIIicer, dairy chemist, lab technicians, and lab assistants. The department works 24 hours
and hence the employees in work in three shiIts. Milma products are tested each and every stage
oI production. The department is mainly Ior checking the quality oI the product and thus
providing the customers the best quality products.
Quality Inspection Process
O When raw milk collected Irom societies, Organoleptic test is done. ie color and Ilavor oI
the milk is tested using sense organs. A test called the 'clot on boiling test is conducted.
Here 5ml oI milk is taken in a test tube and is heated to a good temperature. ood milk
does not Iuse or clot on the side oI the glass when heated to a high temperature. II it Iuses
then the milk is rejected.
O The quality control department ensures that Milma toned milk has 3 Iat and 8.5 SNF.
The quality control department assures the chemical quality oI the milk. AIter processing
the milk Irom each storage tank is tested. For this the milk Irom each tank is subjected to
Methylene Blue Reduction Test (MBRT). This test in done to ensure the keeping quality
Quality Control OIIicer
Dairy Chemist
Lab Technician
Lab Assistants

oI the milk. II the bacterial load is high the milk will get spoiled and hence the MBRT
test will give us an idea oI bacterial load. Here 10ml oI milk is mixed with 1ml oI
Methylene Blue. This mixture is shaken and kept in a water bath oI 37C. The mixture
will be blue in colour and the time is noted when the test tube is place in the water bath.
In the case oI milk that has good quality and low in bacterial load the MBR time is below
4hours and above i.e. by this time the blue mixture turn black to white.
O Quality control analysis is also carried out Ior ghee, sambharam and curd. Their quality is
checked and, only then it will be sending Ior dispatch. The quality control department
assures the quality oI such products to the consumers.
Quality standards followed by ollam dairy
Product Fat SNF Acidity MRBT Phosphate TS
3.0 8.5 0.13-0.15 ~5hrs -ve NIL
Rich Plus 3.8 10.0 0.15-0.17 5hrs -ve NIL
Curd 0.5 10.5 0.8-1.3 NA NA NIL
Sambharam 0.5 NIL 0.5-0.7 NA NA 4.0-5.0

MBRT - Methylene Blue Reduction Test.
SNF - Solids Not Fat
SPC - Standard Plate Count
TS - Total Solids

Specification for ghee agmark requirements
Moisture 0.3 (maximum)
Free Iatty acid 1.5 (maximum)
RM value 28
BE value 40-43

The Quality Process

MBRT - Methylene Blue Reduction Test.
SNF - Solids Not Fat
SPC - Standard Plate Count
TS - Total Solids

Societies Milk producers (APCOS)

Heating milk to a minimum temperature oI

76C holding Ior 15 seconds and cooling to
less than 5C to completely destroy all
pathogenic bacteria.

Fat 3.0, SNF 8.5

At dispatch dock sachet tested Ior
MBRT, SPC and coliIorm.
Market sample tested Ior MBRT, SPC,
Filled only aIter ensuring quality

To control the growth oI bacteria

Raw Milk at diary
Chilling to 10C
Standardization and
Packing & Cold storage
Through agents


The department is headed by the HR assistant manager. He is assisted by junior
superintendent and his assistant with junior and senior assistants, stenographer, typist and oIIice
All the service matters oI the industry are the control oI this department. The main
aim oI this department is to ensure welIare oI employees salary, wages and welIare measures are
the control oI this department. Recruitment, selection, training, etc are also done by this
department. Attendance and leave taken by the employees are also monitored here.
Working period is Irom 10am to 5pm. Working days are Irom Monday to Saturday.24
hours working in production, quality and maintenance and product department. So there are three
shiIts per day i.e. Irom 7am3pm, 3pm11Pm, 11pm-7am.
Jr. Superintendent
Sr. Assistant
Jr. Assistant
Assistant Manager
OIIice Attendar

The important Iunctions oI this department are:

O Recruitment
O Training & Development
O Promotion & TransIer
O Industrial Relations
O Wages & Salary
O Disciplinary procedures
O Health & SaIety
The Kollam dairy is having both temporary and permanent employees. The permanent
recruitment is done by the managing director at the Head OIIice. Temporary recruitment is done
through employment exchanges, District Salnic welIare Board etc. Part time employee can work
up to 180 days. Usually the workers recruited temporarily are plant attendees, cleaning staII and
technician. In some cases oIIicers may also be recruited temporarily. But this is done by the
Head OIIice. For permanent recruitment, advertisements are given monthly through Malayalam
News paper dailies. From the approved applications, candidates are selected on the basis oI
written test. Approval is mainly based on qualiIication required Ior the concerned posts. Those
who passed the written test are called Ior job interview. Candidates who succeed in the interview
are placed in the concerned posts. Usually the top positions in the dairy are Iilled by the existing
employees themselves through getting a promotion. People Irom outside the dairy are recruited
mostly Ior lower level position.
Training and Development
Training is conducted based on need. Training is given to permanent employees both oII
the job and on the job. Experts outside and inside the organization give training to the
The candidates who passed Ior both test and interview will be selected and placed by the
committee itselI. Induction training programme oI 3 to 6 months is mainly given to the
permanent employees who are selected.

They have a tie up with NDDB and thereby oIIer training Ior those staII. KCMMF has got
raining centre at Thrichur. Mostly training is conducted Irom outside the organization by some
agencies. These agencies are identiIied through Kerala State Productivity council, National
Institute oI Personnel Management, Milma training centre etc.
Promotion & Transfer
Promotions are oI two types, seniority based and merit based promotion. OIIice level
employees are promoted on the basis oI their seniority and top level employees are promoted on
the basis oI their perIormance. There is a staII regulation rule Ior the promotion oI oIIicers and
standing order act Ior employee`s promotion.
Attendance Management
There is a well managed attendance system. The IN and OUT oI each and every
employee is recorded at time oIIice register. A card is provided to the employees to punch when
they enter and leaves the plant. An advanced electronic punching card is going to implement in
Industrial Relation
The Kollam dairy maintains very good industrial relations. The three main trade unions in
operation are CITU, INTUC and AITUC. These trade unions operate Ior the welIare oI the workers. The
Milma Kollam dairy is a strike Iree organization. For more than 5 years there had been no strikes
registered. This gives ample prooI oI the industrial relations at Kollam dairy. The main aim oI the trade
union is to maintain a good relationship between the employees and management.
ages & Salary
The Salary constitutes Basic Pay, DA and House Rent Allowance. The D.A. is 70 oI the
basic pay where as the house rent allowance is 10 oI the basic pay, PF is 12 and ESI 1.75. roup
medical insurance also provided. Attendance is considered while calculating salary. Payment is given in
last day oI every month Ior permanent staII and beIore 5
oI next month Ior the temporary staII.

Disciplinary Proceedings
The HRD department is responsible Ior maintaining discipline in the organization. At the
Kollam dairy, the rules and regulations Ior oIIice staII and workers are diIIerent. StaII regulations are
concerned with the oIIice staII and standing orders are concerned with workers. II there is any in
disciplinary action arises Irom a worker standing order will be issued.
Health & Safety
Special care is taken Ior the health and saIety oI every worker. Some health and saIety
measures are, providing uniIorm, shoes, warm clothes are given to the employees who are working in
cold storages. Floors are cleaned thoroughly. Dangerous machines are grilled Ior worker saIety.
elfare Measure

The employees enjoy canteen Iacilities, recreation Iacilities, toilet etc, in addition to this employ
welIare activity such as employees` state insurance. They are provided with medical beneIit, sickness
beneIit, disablement beneIit, Iinancial beneIit. Employee`s provident Iund, disablement pension, widow
pension etc are covered under the employees provident Iund scheme.


The security department is headed by the security supervisor and 9 security guards are
working under him. All security guards are Ex. Military service men and they are working on
contract base.
This department work 24 hours and there is two shiIts. They working continually 2days and the
next day will be oII. Two guards are in the main gate, the visitors and staII should report here.
Here will be some registers Ior recording the details oI visitors and employees. One security staII
is in reception and his duty is to attend the telephone call, transIer calls to various departments,
answer Ior enquiries, etc. This security staII will move to dispatch dock at 2.30pm Ior
supervising the dispatch oI milk. And there will be a security guard in the dispatch dock Irom
morning till evening.

Security Supervisor
Security uards



O Milma`s products enjoy the reputation oI high quality and healthy as most oI its products
are made with milk collected Irom Iarmers in rural areas.
O Milma plant having all necessary equipments and machineries to meet the present
demand oI quality milk and milk products.
O There is good communication system and co-operation among all department oI milma
and it has good organization structure to help thing are going smoothly.
O The employees selected in milma are eIIicient enough to take responsibilities and
challenges and able to do their maximum to achieve organizational goal.
O A Iair growth in production and increasing scenario oI houses as well as Iamilies gives
milma a good opportunity to make good market strength in kerala.
O The gradual change oI society in to disposable culture make big need Ior packet milks in
their daily liIe
O The increasing number oI super markets and margin Iree markets gives new opportunity
to enter urban markets.
O Because oI having less margin most oI the sellers in rural areas ignores milma products
instead oI other company`s products except milk.
O Milma giving more care to Iarmer`s prosperity, it leads much more diIIiculties to meet
employees and other parts oI organization`s objectives.
O Milma requires more advertisement in the competitive environment.
O DeIiciency oI Iodder in summer creates lesser production oI milk. It makes diIIiculties in
achieving customer demand and makes more expenses.
O Milma never gets much more attention Irom the government side, but it suIIers unusual
interIeres Irom government side.
O Because oI increasing cost milma is Iacing threat oI price rise.

The organizational study gave a greater learning experience to me. The experience oI
doing one month long study gave me opportunity to explore in to the areas oI practicable
knowledge oI management and nature oI a company. This organizational study also showed the
important roles played by every single Iunctions oI the management. Milma is the present milk
marketing leader in Kerala. But in this changing condition the marketing oI milma products has
become more challenging as it now Iaces several competitions Irom private milk producers and
local producers. This entire problem can be met through proIessional management approach and
target oriented training and proper planning. So the company should give the attention
in ensuring the quality oI products and introduce more promotional activities to overcome the

Direct Interview
Annual Reports