ORGANIZATION STUDY OF MILMA Cattle Feed Plant

PATTANAKKAD

Submitted in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATIONof the Mahatma Gandhi University.

Submitted byAKHIL.T.S

(Regn No:10207)

Under the guidance of MS.ANJU RAVI

JUNE 2010

DC School of Management and TechnologyPullikkanam, Vagamon, Idukki 685503Tel: 04869 – 248322, 248323

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DECLARATION

I, AKHIL.T.S, do hereby declare that the work entitled “An Organization Study on MILMA Cattle Feed Plant, Pattanakad” is a bonafide record of study conducted by me for the fulfillment of the partial requirement for the award of the degree of Master of Business Administration program of Mahatma Gandhi University, Kottayam

Place: Vagamon Signature:Date: Name:

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CERTIFICATE

This is to certify that the organization study titled “Organization study on Milma Cattle Feed Plant Pattanakad, is a bonafide record of the work done by Mr. Akhil.T.S, 3rd semester MBA Student of DC School of Management and Technology, submitted in partial fulfillment of the requirements for the award of the Masters Degree in Business Administration of Mahatma Gandhi University , Kottayam, Kerala.

Faculty Guide : Principal

Date :Place : Pullikkanam

________________________________________________________________________

Examiner I Examiner II

SignatureNameDate

SignatureNameDate

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Certificate from the Company

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ACKNOWLEDGEMENT

First of all, I thank the God Almighty for his blessings to complete my

Organization Study successfully.

I would like to express my heartiest gratitude to Mr. P.G Raju Assistant manager(P&A)

Milma Cattle Feed Plant, Pattanakad for giving me an opportunity to carry out my

Organization Study.

I would also give special thanks to all the department heads, I visited for their

support, information, co-operation, advice to complete my Organization study details

would also given my sincere thanks to all the staff and the members of Milma Cattle Feed

Plant, Pattanakad.

I would like to thank my Organization Study guide Ms Anju Ravi, Faculty Guide,

DCSMAT for her guidance, constant interest and encouragement which has enabled me

to complete my Organization Study successfully.

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CONTENTS

Chapter Particulars Page No

1. INTRODUCTION

a) Objectives

b) Significance

c) Scope

d) Methodology used

e) Limitations

7 – 9

2. PROFILES a) Industry profile

b) Company profile

c) Product profile

d) Departmental profile

10-15

3. SWOT ANANLYSIS a) Strengths

b) Weakness

c) Opportunities

d) Threats

16 – 58

4. FINDINGS,SUGGESTIONS &

CONCLUSION

a) Findings

b) Suggestions

c) Conclusion

59 - 60

5. BIBLIOGRAPHY 61 - 64

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CHAPTER 1

INTRODUCTIONObjective of the study

Significance of the study

Scope of the study

Research methodology

Limitations of the study

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INTRODUCTION TO THE STUDY

The study was conducted at ‘‘MILMA CATTLE FEED PLANT PATTANAKKAD’’.

This is a co-operative sector unit. The main aim of cattle feed plant is to provide

nutritious feeds to cattle.

Milma Cattle Feed Plant, Pattanakad started its production on 23 rd February 1985 with a

total capacity of 100 metric tonnes per day, in 12 acres. It is situated near NH.47 in

between Kochi and Alleppey.

The milma cattle feed plant is under the Kerala Co-operative Milk Marketing Federation

(KCMMF) which is otherwise called MILMA. Milk marketing societies in India have

developed which was different from that in other advanced on account of increased

pressure of publication on land and small size and fragmentation of agricultural holdings

there no medium or large dairy farms in the private sector. The only large firms now in

existence are military farms those owned and run by the central governments which were

constituted mainly as central for research and extension and not as commercial ventures

providing milks and other dairy products.

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OBJECTIVES OF THE STUDY

To familiarize with the organization.

To study about the overall functions of the organization

To assess the operational efficiency and managerial effectiveness.

To study the various functions of different departments.

To study about the contribution of various department existing in the organization.

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SIGNIFICANCE OF THE STUDY

The academic curriculum provides only an outline view about the theoretical

aspects of a company. Therefore this study helps the researcher to familiarize with the

practical side in an organization. Thus an analysis can be made in the study on which the

theoretical aspect is compared with the actual situation.

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SCOPE OF THE STUDY

The study provides an insight to the different aspects of the working of the

organization. The study on the whole was revealed that this plant set up under co-

operative sector growing progressively and that it has bright future. More over this study

helped the researcher to get enough practical exposure.

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METHODOLOGY USED IN THIS STUDY

The methodology adopted in the study comprises the collection of primary and

secondary data.

Sources of Primary Data 

The primary data are collected through discussions with managers and workers.

Sources of Secondary Data       

Company Records

Magazines

Company website

                

Time Frame

The study was conducted and finished within a period of 6 weeks.

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LIMITATIONS OF THE STUDY

Since the officials were busy with their routine engagements it was difficult to

spare their time for detailed discussions.

The workers were of different educational background so their responses level

was different.

The study is limited to the knowledge and experience of the researcher in the

subject.

The time was a limiting factor for deep study and analysis.

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CHAPTER 2

PROFILES

Industry Profile

Company Profile

Product Profile

Departmental Profile

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INDUSTRY PROFILE

INDUSTRY PROFILE

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CATTLE FEED INDUSTRY

The demand for food of animal origin is increasing in India due to economic

growth, population growth and urbanization, which in turn means greater use of cereals

and oilseeds for animal feed. This is a trend in most developing countries. India is going

through a livestock revolution. In the past two decades the increase in demand was coped

mainly by expanding livestock population. However, declining land areas per agricultural

population forces India to intensify livestock production. Today, we are faced with an

extraordinary set of challenges of increasing food production of animal origin with all the

other limitations like land, water, weather etc and the question is how we would meet

these demands. We also have another challenge that the food we produce has to be highly

cost efficient to make it more sustainable.

HISTORY

The beginning of industrial scale production of animal feeds can be traced back to the

late 1800s, this is around the time that advances in human and animal nutrition was able

to identify the benefits of a balanced diet, and the importance of the role that the

processing of certain raw materials played in this. Corn gluten feed was first

manufactured in 1882, while leading world feed producer Purina feeds was established in

1894 by William H. Dan forth. Cargill which was mainly dealing in grains from its

beginnings in 1865, started to deal in feed at about 1884.The feed industry expanded

rapidly in the first quarter of the 1900s with "Purina" expanding its operations into

Canada, and opened its first feed mill in 1927 (Which is still in operation).In 1928 the

feed industry was revolutionized by the introduction of the first pelleted feeds - Purina

Checkers.

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INGREDIENTS

The main ingredients used in commercially prepared feed are the feed grains,

which include corn, soybeans, sorghum, oats, and barley. Corn production was valued at

nearly $25 billion in 2003, while soybean production was valued at $17.5 billion.

Roughly 66 percent of sorghum production, which was valued at $965 million in 2003, is

used as livestock feed. Approximately 60 percent of barley production, which totaled 227

million bushels (4,610,000 metric tonnes) and was valued at $765 million in 2003, is

used as livestock feed. Annual oat production in 2003 was valued at $218 million.

The sale and manufacture of premixes is an industry within an industry. Pre-

mixes are composed of micro-ingredients such as vitamins, minerals, chemical

preservatives, antibiotics, fermentation products, and other essential ingredients that are

purchased from pre-mix companies, usually in sacked form, for blending into commercial

rations. Because of the availability of these products, a farmer who uses his own grain

can formulate his own rations and be assured that his animals are getting the

recommended levels of minerals and vitamins.

MANUFACTURE

The job of the feed manufacturer is to buy the commodities and blend them in the

feed mill according to the specifications outlined by the nutritionist. There is little room

for error because, if the ration is not apportioned correctly, lowered animal production

and diminished outward appearance can occur.

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INDUSTRY LEADER

Globally

The world's largest feed manufacturer is the CP Group Thailand, producing 18 million

tonnes of compound feed at various locations across East Asia.

Europe

The merge of the Hamburg based traditional commodity trade firm Cremer and the

Düsseldorf based Deuka (Deutsche Kraftfutterwerke) led to one of the largest feed

companies in Europe. The new Cremer Group produces around 3.5 million tonnes.

United States

Leading US-companies involved in prepared feeds production in the early 2000s included

ConAgra Inc., an Omaha, Nebraska-based firm; and Cargill, Incorporated, a diversified

company that was the nation's top exporter of grain. In 1998 Ralston Purina Company,

based in St. Louis, Missouri, formed Agribrands International, Inc. to control its

international animal feed and agricultural products division. Agribrands produced feed

and other products for livestock in markets outside of the United States and had about 75

facilities operating in 16 countries. In 2001 it was acquired by Cargill.

Other significant industry players included Conti Group Companies, Inc., the world's

leading cattle feeder; CHS, Inc. (previously known as Cenex Harvest States Cooperative),

which was primarily involved in grain trading; and Farmland Industries, Inc., the leading

agricultural cooperative in the United States. Farmland was a worldwide exporter of

products, such as grain. In May 2002, the firm declared bankruptcy, and in the following

year Smithfield Foods acquired most of Farmland's assets.

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CATTLE FEED INDUSTRY IN INDIA

The cattle feed segment is also a segment for potential growth given the fact that

India is largest producer of milk in the world. Production is expected to grow 4% at an

annual basis. India’s yearly production of 91 million tons of milk implies that the

potential market for cattle feed should be approximately 45 million tons annually.

However the vast majority of cattle and buffalo in India are fed through grazing and the

use of basic mixes and concentrates and the market for compound feed is estimated to be

around 5.5 million tonnes. The private players produce around 1.2 million tonnes; the

dairy cooperative sector produces around 2.5 million tonnes of low cost feed that is sold

to member farmers involved in milk production. The rest is produced by home mixers.

Feeding and Nutrition Update:

NDDB has introduced newer concepts in feeding The Urea Molasses Mineral

Block (UMMB) lick allows the slow ingestion of urea- which, in turn, is efficiently

utilized by the rumen microbes. UMMB licks are manufactured in different states under

the cooperative sector.

Bypass Protein Feed is a new generation cattle feed in India and is manufactured

by a special formulation developed by NDDB. Bypass Protein Feed (BPF) contains a

large percentage of solvent extracted protein meals, grain by-products, whole grains,

molasses, minerals and vitamins. The special feature of the formulation is that 65 per cent

of the total protein in the feed is rumen non-degradable protein

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CATTLE FEED INDUTSTRY IN KERALA

In Kerala, the various cattle feed manufacturers include KCMMF, SKM CATTLE

FEEDS, OK CATLE FEEDS, KSE CATTLE FEEDS,GODREJ CATTLE FEEDS etc.

Among them, the market leader is KSE.

Milky way of Kerala

The Kerala state was included in the second phase of “operation flood” during

the year of 1980-1987 the eight southern Districts from Trivandrum to Trichur were

included in the area of the project had a total outlay of 29 cores.

Milma have the village co-operative societies in the village level, which have the

local milk producer as its members. At this level procurement of milk at the society level

take place. The village co-operative society level takes place. The village co-operative

societies milk at the regional level to form Regional co-operative milk producers union.

There are three unions at Trivandrum, Ernakulam and Malabar union. These unions later

federate at the state level to form state federation that is Kerala Co-operative Milk

Marketing Federation(KCMMF). The eight southern district from Trivandrum to Trichur

were included in the area of the project which had a total outlay of 29 crores.

Establishment of Kerala co-operative Milk Marketing Federation

Kerala co-operative Milk Marketing federation popularly called “MILMA” was

established in April 1980. With its head office at Trivandrum for the successful

implementation of this program in Kerala.

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From 1980 KCMMF was involved in concentrated spearhead team activities,

identification of potential milk collection area, formulation of milk co-operatives and

extension activities.

MILMA came into its own on 1/4/82 when it looks over the revenue earning activities

of procurement and marketing from the government in April 1984 encouragement by the

response of second operation flood. The same areas were included in the third phase of

operation flood.

Network of the firm

The motto of the co-operativisation “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 we have the village co-operative societies while the local milk producers as its

members. This village co-operative milk producers union later federate state level to form

state federation.

On the lines of Anand Pattern the organizational structure of KCMMF is

decentralized and democratized. There are three Regional Milk Producer’s unions in the

state. The unions are in turn well represented in the Board of Federation with three

nominees from each union. The Chairman of the federation is elected from among the

president of the primary milk co-operative societies.

The success story on the dairy revolution 1960’s was the farmer owned Amul co-

operation in Anand (Karia District, Gujarat) with its integrated approach to production,

procurement, processing and marketing on co-operative line. Over the years this evolved

itself into a model based on it rule by farmers insuring maximum returns to them. This

model came to be known as Anand Pattern.

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A dairy program called “Operation Flood” was launched in 1970 under the ages

of National Dairy Development Board (NDDB) functional as the technical consultants.

Thus NDDB was started under Society’s Act known as “Anand Pattern Co-operative

Societies” (APCOS). The society gets finance from Indian Dairy Co-operation”

Operation Flood

Operation flood was the remunerative linking of rural milk producing with urban

demand centers as to build up viable dairy industries. The operation flood program has 3

phases.

First phase of operation flood aims procurement of milk from urban area to rural

surplus started during 1980’s. Kerala was included in the second phase of operation flood

program.

After the operation flood, the veterinary farmers felt the deep shortage of grass.

The cattle feed problems increased day by day. For saved the farms, farmers from this

problem, the first cattle feed plant established at Gujarat under the NDDB. Govt. of.

India.

History of Milk-Market in India

The National Dairy Development Board (NDDB) is the agency of India

Government that introduced the dairy program called” operation flood” launched active

as technical consultants. India Dairy Co-operation as the funding agency. The “operation

flood” was the remunerative linking of reveal milk producing centers so as to build up a

viable Dairy Industry.

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COMPANY PROFILE

COMPANY PROFILE

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History of Cattle Feed Plant, Pattanakkad

Cattle breeding are a profitable business of middle class of Kerala. The milk business

of the state largely depends on the cattle breeding. The shortage of fresh grass and hay

urges to switch on to cattle feeds. 99% of the farmers depend on different brands of cattle

feed. Cattle feed plant Pattanakkad can describe as an important well-established unit

among the cattle feed plants in India.

Milma cattle feed plant at Pattanakkad is set up under operation flood 11

programmers’ with a production capacity of 100 tones of balanced cattle feed per day

commissioned on 23/2/1985 under Kerala Co-operative Milk Marketing Federation. This

is a co-operative venture established with a solid Kerala govt shares. The main aim of this

venture is to supply superior quality balanced cattle feed to farmers at minimum rate.

In 1982, the govt acquired land for factory. In December 1984, plant construction

completed with an expenditure of Rs7392464. Sri.K.R.Gowariamma (Hon. Minister of

Agriculture in Kerala) at the time so she was the minister of Industries in Kerala asked

Mr. Kurian (Founder and Director of NDDB) to prepare a plan and project report of

establishment of plant around Cherthala.

After an extensive survey of the milk producing areas, Mr. Varghese Kurian set up a

plant with the help of NDDB. The plant was also set up under operation flood11. Now it

is one of the fastest growing public sector companies under the govt of Kerala with a

capacity to produce 300 metric tons of cattle feed per day. It is running smoothly and

profitably.

The starting capacity of the plant was 100 tonnes/day in 1985. Subsequently raised to

300 tonnes update computerized electronic machines are used for the production. The

hatching method conducted using computer comprises the quality of the product. There is

a dust extracting system, which ensures dustless healthy environment in the plant.

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Mission

‘Our mission is farmers’ prosperity through consumer satisfaction.’

The main mission of C.F plant is to increase the co-operation among the veterinary

farmers. The C.F plant, Pattanakkad has followed by the decentralized and democratized

activities.

The company provides all necessary type of cattle feed for protect the veterinary

animals from the series disease and help the veterinary farmers on economically.

Vision

‘To constantly strive to provide valued customers with the highest quality cattle feed with

the best standards of service by our passionate and focused workforces using state of the

art technology ensuring sustained growth and simultaneously ensuring dairy farmers’

delight by better realization of milk price and offering needed service at his/her

doorstep.’

Quality

‘We, at Milma Cattle Feed Plants are committed to produce and distribute quality and

balanced cattle feed at the lowest price possible for satisfaction of customers in our fully

automated plants. For this goal we plan and implement strict quality control management

and continual improvement by use of good quality raw materials and strict manufacturing

process to ensure that Dairy farmers get balanced cattle feed, at their doorstep.’

Goals

The goal of the company is to provide all necessary facilities under the one roof to

veterinary farmers. The veterinary farmers lead this company. The goal of the company is

classified into two: external and internal goal. The external goal is for improving the

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standard of living of the veterinary farmers and internal goal is for maximizing the profit

with minimum cost.

Objectives

The main objective of the company is to assist the veterinary farmers on

economically and socially. Another objective is to provide the high quality cattle feed

with minimum cost. The company plays the crucial role in the Kerala economy.

However, the profit maximization with cost minimize as the objective of this firm

Plans

The main future plans aiming at modernization that is, for conversion of mash feed

production to pellet production and expansion of other infrastructural facilities. The

company has the following plans to execute in the future.

1. Expansion of finished products godown.

2. Expansion of administrative block and workers amenities.

3. Development of roads and other areas around the company.

4. Lorry parking yard to accommodate 40-50 trucks at a time.

5. Total production to 500mt/day

Structure

The organization chart and associated information that shows who reports to whom

and how tasks are both divided up and integrated.

In the cattle feed plant, Pattanakkad, the senior manager is the apex destination. Six

important departments are working in his position. They are Finance department,

Production and Maintenance, Marketing, Personnel or H.R.D, Purchasing and Animal

and Nutrition department.

The company is under the guidance of senior manager. The all other position of

departmental manager except purchasing department is known as assistant manager. The

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detailed discuss about the structure of the company are include the organization structure,

the separate chapter shown in this report.

Systems

The system shows the flow of activities involved in the daily operations of business,

including its core process and its support systems.

Information system

It refers section head places emphasis on ensuring that every office worker in the unit,

a computer on his task. The modern techniques are applied in this organization. The

organization is fully computerized. In the cattle feed plant, Pattanakkad, all the bills are

computerized. The accounting sections, purchase section, H.R.D section, marketing

section are fully computerized.

Styles

The style of an organization, according to the Mc.Kinsey framework, becomes

evident through the patterns as actions taken by members of top management team over a

period of time.

In KCMMF Ltd, C.F plant, Pattanakkad, the functions of top management are:

1. Formulates the strategic plan for his department.

2. Gives orders and instructions.

3. Formulating good communication among employees.

4. Maintain discipline in the firm.

5. Take important and necessary decision for the department.

6. Provide inspiration and motivation to the employees.

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The main style of the company is co-operativisation. But all the decisions regarding

the plans, the top-level management takes policies, procedures etc.

The company is fully controlled by the senior manager. All the department heads are

making consumers strength by the team building exercise, a unique residential workshop

for efficiencies on “Creative Prospective”. All the departments such as upper level,

middle level and low level are actively in ‘Line and Staff’ relationship. The nature of the

company is public Ltd.

Shared value

It refers commonly hold beliefs; mindsets assumption that shapes how an

organization behaves it is corporate culture.

Beliefs

The company is believed under the co-operativisation. The organization is

decentralized and democratized. The farmers actively participate

in the company activities. However all the regional milk producer’s unions have active

elected representative of farmers.

Culture

The company belongs to the concentrated team activities. The company also followed

the policy of ‘By the people, of the people and for the people’. The employees works in a

freely atmosphere. They formulate ‘Line and Staff’ relationship from up level to lower

level.

Values

The company gives most importance to the human. It provide all the facilities to the

employees such as welfare activities, reading room, game, canteen etc. the company has

more response to society through provide employment opportunity and protect the

veterinary farmers through distribute the high quality cattle feeds with minimum price.

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ORGANIZATION CHART

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KCMMF

The milma cattle feed plant is a subsidiary of Kerala Co-oporative Milk Marketing

Federation (KCMMF)

30

Sr.MgrMngr

Mngr Finance

AM (P&M)

AM(P&A)

Sr. Sptd Jr. Spdt.

Jr. Asst.

Animal Nutrition Officer

Jr. Spdt

Sr. Asst.

Jr. Asst.

Office Attender

Office Attender

Deputy Engineer

Technical Supervisor

Skilled Worker

Semi-Skilled Worker

Workers

Chemist

Lab Technician

Lab Atndr

Asst. Acc. Ofcr.(Mktg)

Jr. Asst

Asst Stores Officer

Sr. Asst

St Attender

Sweeper

Managing Director

Board of Directors

ERCMPU

The main products of the KCMMF Ltd are milk products such as dairy milk, ice

creams, ghee, butter and cattle feed. There are two cattle feed plants under KCMMF Ltd.

They are situated at Pattanakkad (Alleppey) and Malampuzha.

Kerala Co-operative Milk Marketing Federation

(KCMMF)

The Kerala Co-operative Milk Marketing Federation (KCMMF) or Milma started its

operation in 1980 with its head office at Thiruvananthapuram. 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

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Type Cooperative

Industry Dairy

Founded 1980

Headquarters Thiruvananthapuram, Kerala, India

Products Milk products & Cattle feeds

Employees 32,000

Website www.milma.com

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 program started

by the National Dairy Development Board (NDDB) in Kerala.

The project impact was so widespread that close to about 83 % of the adult cattle of the

state got converted to the new breed – Sunandini-, the milk production increased by over

ten times and the per capita availability of milk increased by over 7 times with over a

million families dependant on milk production. The project has succeeded in integrating

better technology and management to the traditional small holder production system. It

also demonstrated how the high productive, semi stall fed cows led to a spontaneous

decline in the total bovine population of the state from 34.6 lakh in 1977 to 21.86 lakh in

2003 when the total bovine population of India went through an upsurge. This

contributed immensely to environmental sustainability. By demonstrating a growth model

for productivity enhancement, the project not only impacted the million small livestock

holders in Kerala, but also millions outside the state.

The project demonstrated revolutionary institutional changes beginning with the Indo

Swiss project of Kerala, an autonomous institution under the govt. of Kerala to the

Livestock Development and Milk Marketing Board and then to the present autonomous

company - the Kerala Livestock Development Board, with the formidable dairy

cooperative system under the Kerala Cooperative Milk Marketing Federation (MILMA),

under the able guidance of its first managing director S. Nagarajan IAS, spun off as

successful an independent entity.

Kerala Co-operative Milk Marketing Federation (KCMMF), popularly called milma was

established in April, 1980 with its Head Office at Thiruvananthapuram for the successful

implementation of the Operation Flood (a dairy programme launched in 1970 under the

aegis of National Dairy Development Board (NDDB).

The name milma represents:-

2,702 primary milk co-operative societies

32

7.78 lakhs farmer members

Three Regional Co-operative Milk Producers' Union

Eleven Dairies capable of handling 9.90 lakhs litres of milk per day

Thirteen Milk Chilling Centres

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.

Network

The Motto of Co-operation of “for the people, by the people and of the people” is the

foundation of the "three tier system" followed by the organization. At the village level we

have the Village Milk Co-operative Societies which have the local milk producers as its

members. These Village Co-operatives unite at the Regional level and form Regional Co-

operative Milk Producers' Unions. There are three regional unions, TRCMPU

(Trivandrum Regional Co-operative Milk Producers’ Union), ERCMPU (Ernakulam

Regional Co-operative Milk Producers’ Union, MRCMPU (Malabar Regional Co-

operative Milk Producers’ Union).

Associates

Milma is in constant touch with other Organizations in this sector. It is only through this

active exchange that milma grew from a small dairy co-operative to the position it holds

in Kerala today.

Chief associates are:-

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National Dairy Development Board, 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.

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 Kariaa District Co-operative Milk Producers' Unions (Amul) is the the first

in this sector. Our Co-operatives are called "Anand Pattern Co-operative Societies"

following the illustrious lineage of "Amul".

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.

Cattle Feed Plants

Milma has two cattle feed plants, one each at Pattanakad in Alappuzha District and

Malampuzha in Palakkadu District. The plant at Pattanakad was established in 1985 with

an investment of 142 lakhs and the installed capacity of the plant was 100 MT per day.

Later during 1993 this plant was expanded to 300 MT per day capacity at an investment

of 307.5 lakhs. This plant can also produce pellet form of cattle feed. The plant at

Malampuzha was set up by Animal Husbandry Department, Government of Kerala in

1972 with an installed capacity of 100 MT per day and later during April 1983 it was

handed over to KCMMF as part of the agreement between Government of Kerala and

NDDB for implementation of Operation Flood II program in Kerala. This plant was

modernized with computerized batching operation with an investment of Rs.56 lakhs

during 1989 and subsequently expanded to 200 MT per day capacity during 1995 with an

investment of 214 lakhs.

34

These plants were set up to supply good quality balanced compounded Cattle Feed at

reasonable rates to member farmers of APCOS. The capacity augmentation from 200MT

to 300 MT with introduction of Pelletization facility was completed. The total production

capacity of the plants is 600 MT per day, i.e., 300 MT per day capacity plant at

Pattanakkad and 300 MT per day capacity plant at Malampuzha.

Training Centre

In keeping with the ideology of placing the instruments of progress in the hands of the

farmers themselves, an orientation program was started way back in 1984 and the training

needs were met from a rented building at Edappally in Ernakulam District. During the

initial period NDDB came forward to help us in providing financial assistance as grant

for meeting the training center expenses. Under North Kerala Dairy Project - Phase I,

Swiss Development Co-operation provided Rs. 29 lakhs as grant for establishment of a

full-fledged training center with hostel facility in the land adjacent to Trichur Dairy.

Accordingly the training center was established and started functioning from the new

premises from 2.1.1992 onwards and it provides training courses for Presidents,

Secretaries, Milk Testers, Milk Collectors of Anand Pattern Co-operative Societies,

Milma agents and Milma staffs.

35

KCMMF

Central Product Dairy, Alappuzha

Cattle Feed Plant, Pattanakad

Thrissur Training Centre

Cattle Feed Plant, Malampuzha

Cattle Feed

Balanced cattle feed is the major input provided to the dairy farmers of the State from the

Federation. There is a high level of acceptability for this product in the market. Milma is

now producing 600MT cattle feed a day. It produces both mash and pellet form of cattle

feed. In addition to augment the balanced feed and to support vitamine level in m animal,

milma has come out with milma mineral mixture -"milma min". The cattle feed is

distributed to farmers at reasonable rate through Apcos, Dealers and Government

agencies.

Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best

quality cattle feed by Indian Association of Veterinary Pathologists during 1998.

PRODUCT PROFILE

The main products of the KCMMF Ltd are milk producers and cattle feed. There are

two types of cattle feed products in KCMMF Ltd Cattle feed plant Pattanakkad. They are

mash and pellet. The mash is powder form and pellet is millet form.

Brand Name

All the products of KCMMF such as pasteurized dairy milk, ghee, creamy butter,

sterilized flavored milk, ice cream, refresh drinks and cattle feed are under the brand

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name of Milma. All the KCMMF products are strictly adhered to the PFA rules and are

sent to the market only after the quality checks.

Brand /Brand Mark

The Milma represents the brand of KCMMF products. The main products of

KCMMF are

 

The products of milma are:-

Milma gomathy

Milma min

Milma gomathy       

It is a pellet type of cattle feed and it is packed in 50 kg.

Production Specification

Moisture (Max)-11%

Protein (Min)-22%

Fiber(Max)-7%

Fat (Min)-3 %

Salt (Max)-2.0%

Phosphorus (Min)-0.5%

Sand & Silica (Max)-4%

Milmamin    

Milmamin is a vitaminised cattle feed. There is constant increase in the demand of this

product from the market. This is packed in one kilogram.       

Animal’s specific requirements for mineral, these requirements are based on the type,

weight and age as well as the rate of performance [weight gain, level of milk, production

and pregnancy] expected on the animals.

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Minerals imbalance and/or deficiencies can result in decreased performance

decreased disease resistance and reproduction failure, which result in series economics

losses. If 30gm – 50gm of Milmamin is mixed with the feeds and given to the cattle, the

problem will rectify.

Minerals contains in Milmamin are :-

Calcium

Sodium

Phosphorous

Magnesium.

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DEPARTMENTAL PROFILE

DEPARTMENTAL PROFILE

There are 4 main departments and 3 other department in Milma cattle feeds. They are;

1. Personnel Department

2. Production Department

3. Marketing Department

4. Finance Department

The other three departments are:-

5. Quality control Department

6. Stores Department

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7. Purchase Department

PERSONNEL DEPARTMENT

The Personnel department deals with the managing and controlling of persons in an

organization. Planning personnel requirements, analyzing performance, salary

administration is done with the help of information system. The requirement of staff of

the C.F plant is done from external and internal sources. The organization provides short-

term training for present employees for the purpose of introducing the new systems or

techniques.

There are nearly 300 workers in the organization. Among them 50-60 are temporary.

There are nearly 10 clerical staffs.

Milma gives promotion in every 5 years and grade is being given in every8 years,

whose promotion is not possible.

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The main functions of Personnel and Administration Department:

Recruitment

Selection

Appointment and induction

Training

Wage and salary administration

Promotion

Transfer

Labour welfare and safety

Industrial relation

Disciplinary action

Statutory and legal matters

General administration

Recruitment

Recruitment is an important personnel function. Recruitment is the process of finding out qualified people.

In the whole federation, till 1995, milma was doing recruitment by itself with the

recruitment policy approved by the government through employment exchange.

For certain posts such as A.N.O, paper notification was given for recruitment.

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In 1995, State government passed legislation to handover the recruitment function of

major co-operative organizations to P.S.C. Though the state government has passed the

legislation no recruitment has been done by P.S.C till this date .Now only temporary

appointment is done.

Selection

Selection is also an important personnel function. The suitable candidates that are,

holding required qualification and others are selected for the post.

In the C.F plant, Pattanakkad, the selection process is conducted by the PSC. The

steps in the process are the following.

Application

Screening

Selection test

Interview

Employment

Appointment and induction

Induction training is given to those employees who need that. Workers do not need such

training.

Training

The training and development organization in Kerala Co-operative Milk

Marketing Federation is the National Dairy Development Board. Thus board provides

training and development for both managers and workers.

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Remuneration

Office staff and technicians get consolidated salary that is at fixed rate and

workers are getting daily wages. Office staff gets basic pay of Rs.6000 and above. It

include BP+HRA+DA. Increment is given once in a year to permanent employees. 181

workers are getting time rate and 114 are getting piece rate.

Promotion

Promotion is the transfer of an employee to a job that pays more money or one

that enjoys same preferred status. In Milma, promotion is given in every 5 years and

grade is given in every 8 years when promotion is not possible.

Bonus

17% of wages is given as bonus. Employees getting salary above 7500 are not

given bonus.

PF

As per Provident Fund Act, employee contribution to PF is 12% and employer contribution is also 12%.

ESI

As per Employee state insurance act, employee contribution is 1.75% and employer

contribution is 4.75%. Employees having salary above 15000 are not given ESI.

Allowances

Workers are given night shift allowance, washing allowance and uniform allowance.

Advance

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Usually advances are given at the time of onam. 

Trade union

The trade union means any combination formed temporary or permanent for the purpose

of regulating the relation between employer and employee. There are 4 unions existing in

Milma. They are INTUC, CITU, AITUC, and BMS etc.

Workers welfare

  Employees’ welfare organization stands for providing welfare at the time of

special events like death, accident, marriage etc. Employees’ welfare organization

provides;

Medical facilities

Canteen facilities

ESI

Lunch and restroom

Organizing culture festival programmes

Safety measures

 For ensuring safety of workers at plant they are providing the following such as gloves,

shoes, first aid facility, dust extraction system in the plant, which help to suck dust arising

at the time of production.

Leave

10 casual leaves and 15 sick leave are given for permanent employees. Earned leaves one

for 11 working days. Earned leaves can be surrendered and carry forwarded. 

Retirement

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Retirement of a worker is an important event in his life and from the company’s

point of view it terms on the moral value. In this firm persons are appointed from 18

years onwards, 58 years is his retirement age.

PRODUCTION DEPARTMENT

The production technologies used are;

1. Pellet production technology

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2. Mash production technology

Pellet production takes more time than mash production. Pellet production technology

results in Gowmathy.

Mash production technology results of high energy feed and Gowardhini. Now the

firm is producing 300 tonnes including both pellet and mash.

Production is the process of making inputs into outputs or transformation of raw

materials into finished products. The plant work as 3 shifts, each has a time period of 8

hours.

The main products of this firm are;

1. Milma gomathy

2. Milmamin

Raw materials

The quality of the finished product depends up on the applicability or use of standard

raw materials. The purchase committee at the head office entertains the main purchase of

raw materials to the cattle feed plant. The purchase committee and the purchase manager

also fix the quantity, quality and role of purchase of commodities.

The raw materials used for production are:-

DORB( De Oiled Rice Bean)-Red and White

Coconut Cake

Mineral Mixture

Molasses

Palm Kernel

Silk Cotton Cake

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Sago Waste

Varagu Bran

Coffee Husk

Cotton Seed Extraction

Rice Polish

Calcite

Salt

Urea

Bentonite

Wheat Bran

Tamarind Seed Extraction

The main raw material used is DORB (white). The advantage of white DORB over red is

that it has more oil content.        

The main sources of raw materials are collected from Tamil Nadu, Karnataka, and Andra

Pradesh.

Machines involved in Cattle Feed Production

a. Grinding machine

This machine is used for grinding raw materials like Jowae, Maize etc.

b. Mixing Machine

This is used for mixing the raw materials.

c. Pre-mixture machine

Calcite powder is mixed with above by this machine and form mash.

d. Pellet machine

This machine is used for cattle feed as pellet.

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e. Air compressor

For functioning flap and siliquid value air compressor is necessary.

f. Bagging packing machine

This machine is used for packing the cattle feed in each bag.

g. Aspiration system

This machine is used for sucking the dust which is arising out at the time of production of

cattle feed.

h. Electronic controller

For controlling and giving necessary electricity to each machine, this machine is

used.

Production Process

The firm follows a highly mechanized and systematic production process. Using the

most modern machinery and supervising the manpower, effectively. All production

processes are carried out by computer controlled machines. The production process

involves the following steps.

1. Supply of Raw materials

2. Dumping

3. Batching

4. Molasses mixing

5. Pellet feed production

6. Cooling

7. Bagging

8. Stitching

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9. Handling

10. Distributing

Production system

The production system of the company is fully computerized. The two types of cattle

feeds are produced from the plant, mash and pellet. These cattle feeds are produced as

batch. In one batch 1000 kg cattle feed are produced.

MARKETING DEPARTMENT

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The company has a special department for marketing their products. As it marketed

only 10% cattle feed through private dealers.

Marketing system

Sales forecasting, sales planning, customer and sales analysis are done with the help

of computer system. The transactions are sales orders, promotion orders etc done under

the systems. The marketing operational control activities include the timing and training

of the sales force, the day-to-day scheduling of sales and promotion efforts. Sales

volumes by region, product, customers etc are including under the marketing systems.

Marketing channel

A channel of distribution may be defined as an “organized network of agencies and

institutions” which in combination, perform all of the activities required to link producers

with users and users with producers in order to accomplish the marketing task.

70% of the product is marketed through the societies (APCOS)

20% of the product is marketed through government agencies

10% of the product is marketed through private dealers

Sales promotion

To maximize the sales of the product or service every firm adopts sales promotion

activities. Maximization of sales is the main aim.

Different steps in sales promotion are;

1. Advertisement

a. News paper

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b. T.V

c. Cinema slide

d. Poster

2. Personal selling

3. Sales promotion

4. Publicity

Importances of sales promotion are;

a. To increase the volume of sales

b. To attract the customers.

c. To create more sales.

Product Mix

A product mix is the full test of all the products offered by a company. That is all the

products manufactured and distributed by the company.

Product mix of KCMMF plant

The following are the product mix of the KCMMF plant. They are ghee, Dairy milk,

Creamy butter, Flavored sterilized milk, Ice cream and Cattle feed.

Product mix of cattle feed plant Pattanakkad

There is no product mix in cattle feed plant Pattanakkad because there is only one

product is produced known as cattle feed

Product segmentation under C.F plant Pattanakkad

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The Milma Gomithra and Milma High Energy Feeds are mainly intended for the

deceases affected cow. Milma Gowardhini and Gowmathy are required for the low milk-

producing cow. The Milmamin is intended to veterinary animal to meet defects of

nutrition. All other products are required for ordinary healthy cow. The C.F plant’s

products are segmented only on the basis of veterinary decease.

Competitors of the plant

1. K.S Cattle Feed

2. Shilpi Cattle Feed

3. OK Cattle Feed

4. SKM Cattle Feed

5. Kerala Feeds

6. Prima Cattle Feed

On contract basis transportation facilities are adopted. No direct selling, it is only

through societies or dealers. In order to improve the sales through APCOS the firm have

introduced APCOS employees incentive scheme from 1997 at Rs 5 for each bag.

FINANCE DEPARTMENT

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The most important factor, which is required by an organization to run difficulty, is

finance. Finance refers to the money or funds available to the firm. Finance is the central

point of the business activity so it is known as the lifeblood of an organization.

Importance of Finance

Finance refers to money or funds available to the firm. A business needs funds at

every step to start a business to operate it and to expand or modernize its operators.

Finance is required for the existence of a business.

Sources of Fund

In plant, Pattanakkad gets finance from the Canara bank, SBT, DCB. All the cheques

are signed by the senior manager.

Preparation of Accounts

There are different types of accounting statements and accounts prepared by this

department. The main accounting statements include:-

Trading & Profit & Loss Account

Balance sheet

Bank Reconciliation Statement

Income tax assessment is done after one year, at the end of the financial year.

Audits are of three types

Internal audit - done every year

Statutory audit- This is compulsory and done according to the company’s act

Tax audit - Audit of financial accounts for assessing tax.

Objectives of F.M

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To ensure that owners are able to secure the maximum return on their investment.

To ensure availability of sufficient fund at reasonable cost.

To ensure effective utilization of funds.

To ensure safety of funds through creation of reserve, reinvestment of profit etc.

Turnover of CATTLE FEED PLANT PATTANAKAD (Units wise - Rs.in Lakhs*)

PURCHASE DEPARTMENT

Purchasing is the main function carried out by this purchase department. The raw

materials purchased for this unit are mainly from outside state. The order for purchase is

produced according to the requirements from the stores. ‘Milma Bhavans’ that is head

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YEAR Cattle Feed Plant Pattanakkad

1996-97 2226.91

1997-98 2069.16

1998-99 3041.71

1999-2000 4419.66

2000-2001 4284.89

2001-2002 4580.42

2002-2003 4691.39

2003-2004 4968.62

2004-2005 4325.24

2005-2006 5135.58

2006-2007 5082.00

2007-2008 4933.08

2008-2009 5644.05

office of Milma makes purchase orders to outside state for the two plant i.e.,

Malampuzha & for Pattanakkad.

To take the advantage of bulk transaction, the purchase dairy consumables and cattle

feed commodities centralized. The purchase committee carries this out successfully

STORES DEPARTMENT

The store section established adequate control over the raw materials, packing

materials, finished products its storage and delivery etc.

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As a consignment of raw materials arrived before weight, a sample from each truck

will be taken for analysis in the lab. After the result the load may be accepted or rejected.

It accepted the truck can be weighed. The Senior Manager scrutinizes the parties’ invoice

and enters the details in the computers.

Immediately weighment slip will be prepared in triplicate. One will be used to the

supplier through driver. One will be forwarded to cashier for payment of unloading

charges at the end of the day and one will be retained in the section.

Warehouse:

The storage capacity of the warehouse was not enough before. So the management hired

a nearby theatre for keeping the stock. Later it proved uneconomical. Then they topped

using that. During emergencies, i.e., when the raw materials are available at low cost, the

plant uses the warehousing facility available in the Cherthala Warehousing Co-operation

on rental basis.

QUALITY CONTROL DEPARTMENT

A special department does the quality control testing. The quality control lab is

operating for this purpose. The raw materials are taken for testing. The finished products

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are also taken for checking quality. The quality control lab has some quality parameters.

For each parameter a set of standard is maintained. This should not exceed or below the

standard.

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CHAPTER -3

SWOT Analysis

SWOT ANALYSIS

 STRENGTH:

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• Premier organization in Kerala producing high quality cattle feed

• Capacity utilization of the plant is above 95 %.

• Adjudged Top Feed Manufacturer of India for manufacture of Aflotoxin-free best

quality cattle feed by Indian Association of Veterinary Pathologists during 1998.

• High level of acceptability for the product.

• Democratic management

• Milma provide a better working condition for the employees.

• The company’s product has high demand and acceptability.

• A fair wage system.

WEAKNESS:

• Centralized decision making

• Warehouse facility of the plant is not enough.

• Recruitment process is not done by HR dept.

• If a single machine fails, the working of the entire system may be interrupted.

OPPORTUNITIES:

• Widely accepted products around Kerala

• State government support

• Huge potential for further growth

THREATS:

• Unnecessary government intervention

• Competition from other companies

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CHAPTER -4

FINDINGS, SUGGESTIONS &

CONCLUSION

60

FINDINGS

The firm maintains a perfect rapport between the employer and employees.

The firm is maintaining its high goodwill and reputation.

The decision making is centralized at the head office.

The recruitment of the firm is done through PSC.

The plant offers high quality cattle feed with preferable appreciation.

The firm distributes their products through their own network.

Best quality is the unique selling proposition of their products.

The firm co existence of public sector and private sector undertakings.

The price of cattle feed products is affordable.

The Milma Federation does not that much believes in the effectiveness of the

advertisement program

They are providing good quality products to the consumer.

Dedicated employees are seen in all departments.

Heavy work load is seen in all departments.

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SUGGESTION

Management should provide some medical centers within the organization.

The firm should avoid the wastage of raw materials to decrease the cost of

production

Advertisement campaign should be more powerful.

Make effective working conditions for the employees.

Take necessary measures to extent customer service facilities.

A warehouse has to be constructed since the storage capacity of the Stores

Department is not enough.

They should extend the production capacity to 500 MT per day.

They should make use of the idle land by constructing new plant in order to

increase the production.

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CONCLUSION

The organization study conducted at the MILMA Cattle feeds plant Pattanakkad helps the

researcher to understand the working of this undertaking. The study on the whole has

revealed that the plant set up under the co-operative sector developing progressively and

so it has a bright future. The findings of the study emphasis and justify the co-existence

of the public sector and private sector undertakings in our national economy and the

views of our national leaders. The planners and the policy maker of the modern India

should recognize the fact that it is unnecessary and unwarranted to sell the shares of

public sector undertakings, which are managed efficiently and render social service to the

society.

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BIBLIOGRRAPHY

Internet Sources:

WWW.Milma.com

http://en.wikipedia.org/wiki/Kerala_Co-operative_Milk_Marketing_Federation

Internal Sources:

Company records

Company manuals

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