ORGANIZATIONAL STUDY @ MILMA FEEDS,PATTANAKAD

MILMA FEEDS

EXECUTIVE SUMMARY

The national leaders of independent India adopted a policy of mixed economy for the

development of our motherland. The various five year plans gave more emphasis for the

development of infrastructure and for the formation and development of public sector

undertaking. The ministry is now selling controllable part f shares of public sector undertaking at

profit.it is in this background that there are some public sectors and co-operative organization

functioning satisfactorily even in the midst of severe stress and strains.

Milma Feeds, Pattanakkad, is one such undertaking under the co-operative sector which is

working at a profit. So it would be much interesting to study the different aspects of working of

the company to evaluate its progress, prosperity and problems.

During my study I was able to study the organization in detail. The organization is having seven

departments; they are: Personnel Department, Purchase Department, Production Department,

Quality Control Department, Stores Department, Marketing Department and Finance

Department. During my study i was able to interact with the employees of the entire department.

So I was able to find their strength, weakness, opportunities and threat. I was able to give some

suggestion for improving their day to day work.

The Personnel department deals with the recruitment, training, placement of personnel at the

right time and at the right place, orientation program, performance appraisal, welfare etc. The

purchase department deals with the purchase of raw materials from Tamil Nadu, Karnataka,

Andhra Pradesh, Uttar Pradesh and Haryana. The production department deals with the

conversion of raw materials that has been purchased from different locations into finished

products. The quality control department checks the quality of raw materials and also the product

that they produce. The nutrionist who controls the quality of cattle feed heads the quality control

department of the company. The store section establishes adequate control over the raw materials

for production, packing materials, finished products and old gunny bags at all levels of storage

and delivery. The marketing department deals with the sales and dispatch of products and also

customers service and sales promotion. The finance department deals with all kinds of accounts

related to personnel, purchases, stores, marketing, work contract, costing, budgeting, central

excise etc.

KARUNYA SCHOOL OF MANAGEMENT Page 1

MILMA FEEDS

INTRODUCTION

Kerala co-operative milk marketing federation (KCMMF) based at Trivandrum was established

in Kerala. It has trade name ‘Milma’.There aim is to promote milk-marketing activities in Kerala

and to give assistance to farmers to enhance their activities Milma is an organization of farmers.

They are the producer of the raw material milk; the shareholders in the organization the chairman

and the board of directors are elected from among them. The farmers are the members of the

APCOS.

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

in Palakkad District. The plant at Pattanakad was established in 1985 with an investment of 142

lakhs and the installed capacity of the plant was 100 MT per day. Later during 1993 this plant

was expanded to 300 MT per day capacity at an investment of 307.5 lakhs. This plant can also

produce pellet form of cattle feed. The plant at Malampuzha was set up by Animal Husbandry

Department, Government of Kerala in 1972 with an installed capacity of 100 MT per day and

later during April 1983 it was handed over to KCMMF as part of the agreement between

Government of Kerala and NDDB for implementation of Operation Flood II programme in

Kerala. This plant was modernised with computerised batching operation with an investment of

Rs.56 lakhs during 1989 and subsequently expanded to 200 MT per day capacity during 1995

with an investment of 214 lakhs.

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

rates to member farmers of APCOS. The capacity augmentation from 200MT to 300 MT with

introduction of Pelletization facility was completed. The total production capacity of the plants is

600 MT per day, i.e., 300 MT per day capacity plant at Pattanakad and 300 MT per day capacity

plant at Malampuzha.

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

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

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

addition to augment the balanced feed and to support vitamin level in milch animal, milma has

come out with milma mineral mixture - "milma min". The cattle feed is distributed to farmers at

reasonable rate through Apcos, Dealers and Government agencies.


MILMA FEEDS

KERALA CO -OPERATIVE MILK MARKETING FEDERATION LIMITED

CITIZENS CHARTER

PREAMBLE

This charter is a declaration of Our Vision, Mission, Values, Commitments, Standards and our

expectations of others.

OUR VISION

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

standards of service by our passionate and focused work force using state of the art technology

ensuring sustained growth and simultaneously ensuring dairy farmers’ delight by better

realization of milk price and offering needed service at his/her doorstep.

OUR MISSION

Our mission is “ Farmers prosperity through consumer satisfaction ”.

OUR QUALITY

We, at cattle feed plants are committed to produce and distribute quality balanced cattle feed at

the lowest price possible for satisfaction of customers in our fully automated plants. For this goal

we plan and implement strict quality control management and continue improvement by use of

good quality raw materials and strict manufacturing process, to ensure that Dairy Farmers get

balanced cattle feed at their doorstep.


MILMA FEEDS

OUR COMMITMENTS

We commit to:

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

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

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

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

Continuous up gradation of technology and development of human resource by

continuous training.

Produce and distribute quality cattle feed, milk & milk products, conforming to stringent

specifications of FPO, BIS, AGMARK and MMPO.

Provide every possible assistance to public by the Public Relation Officers in the Head

Office and by Officers in our Units. The officers nominated would, besides, provide

relevant information including procedures that may have to be followed by the public in

dealing with the Federation.


MILMA FEEDS

OUR MOTTO

The name ‘MILMA’ and its motto is “Yours Health is our Concern”. Have now become

synonymous with assured quality. This is amply proved by the fact of all our products mainly

“Ghee” selling solely under the trade name of MILMA.

OUR STANDARDS

Our two cattle feed plants, each of 300 tons per day capacity are fully automated. We use only

good quality raw materials and strict manufacturing process to ensure that milk farmers get

quality cattle feed at their door step.

We have set upon ourselves standards for all transactions with you. We undertake that without

unnecessary delay we shall promptly communicate the same to the party concerned.

OUR EXPECTATIONS FROM CLIENT

We expect you to be reasonable and prompt in exercising your rights and obligations in all your

transactions with the Federation without extending inducement of any kind and not raising any

frivolous issues.


MILMA FEEDS

ORGIN OF THE ORGANIZATION

At down the seventies, the diary sector in Kerala, though fairly large, didn’t present an organized

look. However it looks a leap forward in these direction eight southern districts of Kerala in the

second phase of operation flood programmes during 1980.the ideology followed by operation

flood was the remunerative linking of rural milk producing centres with the urban demand

centres so as to build up a viable dairy industry. During 1987, six districts of northern Kerala

were covered under north Kerala dairy project (NKDP).we could achieve spectacular progress in

milk procurement and marketing with the implementation of the above programme.

The second part of the operation flood programme has commenced from 1978 involving a total

lay of 485 crores starting of co-operative milk supply federation, an important item of this

scheme. A team of experts was attached to the federation starting of Anand model milk supply

union was the main objective of operation flood.as a result of this effort milk production in the

country has highly increased. Kerala was included in the second phase of the operation flood.

GROWTH & DEVELOPMENT

The motto of co-operation is “of the people, by the people and for the people” is the foundation

of the “three tier” system followed by organization. Milma have the village co-operative

societies in the village level, which have the local milk producers as its members.at this level,

procurement of milk at the society level takes place. The village co-operative societies at the

regional level unit will form the regional co-operative milk producers union (RCMPU).

There are three unions, they are: Thiruvanthapuram, Ernakulam and Malabar Union. These

unions are popularly denoted as TRCMPU, ERCMPU and MRCMPU (Trivandrum, Ernakulam

and Malabar Regional Milk Producers Union).these unions later federative at the state level to

form state federation in Kerala Co-operative Milk Marketing Federation (KCMMF).


MILMA FEEDS

GROWTH OF APCOS

The first APCOS was registered on 30th September 1981 and there has been no looking back ever

since. Today there are 2315 APCOS throughout the state and the growth has been impressive.

The success of the primary Milk Co-operative is also reflected in the growth of the membership

in these societies. The membership at the society’s level grew by leap and bounds and crossed

6.37 lakhs in March 2001.The assurance of readily available market for the doorstep of the

society twice a day regularly enhanced the growth of milk production that is reflected in the

growth of milk procurement over the years.

MANAGEMENT OF KCMMF

The KCMMF was among the first federation in India to have an elected board. There regional

union function in a highly democratic and decentralized environment. All the unions have active

elected members in their board, thus ensuring that it is truly an organizational for the producers,

ran by the producers and functioning for the products. The unions are in turn well represented in

the board of the federation with three nominees from each union. The other members of the

board of the company is always a government nominee, where as the chairman is elected from

among the president of milk co-operative society.

STRUCTURE OF DAIRY CO-OPERATION IN KERALA


KCMMF

Central Products

Dairy,

Alappuzha

Cattle Feed

Plant,

Pattanakkad

Cattle Feed

Plant,

Malampuzha

MILMA FEEDS

The organization of dairy c0-operation in Kerala has three tier structures. The primary milk

co-operation functions at the village level, the regional milk producers union at the middle or

district level. The KCMMF or milma acts as the apex body at the state level. The motto of co-

operation is “Of the people, by the people and for the people”.at present there are three regional

milk producers union which operates at Thiruvananthapuram, Ernakulam and Kozhikode

respectively. The primary co-operative society functioning in the districts of

Thiruvananthapuram, Kollam and Pathanamthitta are affiliated to the Thiruvananthapuram

Regional Co-operative Milk Producers Union (TRCMPU).While milma take over charge from

the rest.

Anand Pattern Co-operative Society (APCOS) was registered on 30 th September 1981 and there

has been not looking back since. Today there are 2350 APCOS throughout the state and the

growth has been impressive. The membership at the society level grew year after year. The

assurance of readily available milk collected from the doorsteps of the society twice a day

regularly encouraged the growth of milk production, which is reflected in the growth of milk

procurement over the years.

MAJOR PLAYERS & COMPETITORS IN THE INDUSTRY


MILMA FEEDS

Godrej Agro Vet Ltd.

Kerala Feeds

Prima Agro Products Ltd.

Pondicherry Co-operative Milk Producers Union Ltd.

Tamil Nadu Co-operative Milk Producers Federation.

CURRENT POSITION IN KERALA MARKET

Milma cattle feeds enjoy the lions share in Kerala market. People have a great preference for this

product. The name milma is familiar with everyone in Kerala. The main advantage which we

possess is quality the company is producing huge quality, the company does not compromise on

quality.as our products main high standard of quality more merchants and customers favour our

products and by this way the product gain high market porential.There exist a tight competition

our product stand out in the market.

INTRODUCTION


MILMA FEEDS

The success story of the diary scene in India during the sixties was the farmer owned Amul

Co-operative society at Anand in Gujarat, with its integrated approach to production,

procurement, processing and marketing on co-operative lines over the years. This involved itself

into a model based on the self-rule by the farmers ensuring maximum returns to them.

This model came to be known as “Anand Pattern”.

The efficiency of the project was worth to replicate. Therefore, a dairy programme called

“OPERATION FLOOD” was launched in 1970 under the agencies of National Dairy

Development Board (NDDB) which functioned as the technical consultants and Dairy

Corporation the funding agency.

Smt.K.R.Gouri Amma, at the time when she was the minister of industries of Kerala asked a plan

and project report for the establishment of a cattle feed plant around cherthala town, after

extensive study of milk producing areas.Dr.Varghese Kurain the Chairman, NDDB established

the plant with the support of NDDB.This plant was established under operation flood 11

programme with a production capacity of 100 ton of balanced cattle feed per day.

The milma cattle feed plant is one such undertaking under the co-operative sector.so it would be

interesting to study the different aspects of working of the company to evaluate its progress,

prosperity and problems. The foundation stone for this plant was laid on 4 th April 1981 by

Dr.Varghese Kurian; Chairman of NDDB.This plant was commissioned by Shri.K.Karunakaran,

the former Chief Minister of chief on 25th April 1985 with an initial capacity of 100 metric ton

per day.

MILMA FEEDS, PATTANAKKAD


MILMA FEEDS

The cattle feed plant at pattanakkad is a large scale productive unit controlled directly by the

Kerala Co-operative milk marketing Federation (K.C.M.M.F) having its head office at

Trivandrum.

The cattle feed plant; pattanakkad was started on 25th February 1985 with initial capacity of 100

metric tons per day which has now increased to 300 metric tons per day.it is situated in an area of

about 12 acre to the west of national high way NH47 of about 7 km north of Cherthala town in

Alleppy district.

Cattle’s breeding is a profitable business of the middle class of Kerala. The milk business of the

state largely depends on cattle breeding. The storage of fresh grass and hay urges the farmers to

switch on to cattle feeds. The cattle fed plant, pattanakkad can be described as important and

well established unit among the cattle feed plants in India. Its importance is noted from the fact

that it is established and situated on the rural areas of Kerala.

There are two cattle feed plant under NDDB with total capacity of 500 MTPD.The cattle feed

plant could market the entire quality of feed manufactured even during the period of recession in

this sector. They could achieve this because of the high quality standards of milma feed and it is

a matter of pride that they have completed successfully with the established brands and caused

out a name for themselves in the market and played the role of the sector.

The expenditure incurred for the completion of the plant was Rs.73, 92,464.The initial capacity

of the plant was 100 metric ton per day. Up to date computerized machines are used for

production purposes. The batching method conducted using computer upraises the quality of the

product. There is dust extraction system, which ensures dustless healthy environment in the plant

and for implementing this system in 12 acres of land the expenditure incurred was Rs.20, 00,000.

FOUNDATION OF THE PLANT


MILMA FEEDS

The cattle feed plant, which run by Kerala co-operative milk marketing federation (KCMMF)

had a meeting with ministers in 1974.the meeting has précised over by K.R.Gouriyamma, who,

who was the honorable minister of rural development in kerala.Dr.Varghese, Founder of national

diary development board (NDDP) had asked to take the project and to make an estimate for

beginning the cattle feed at pattanakkad. The national diary development board gives help of the

program. The meeting that held in 1979 many favourable factors available on the present spot

(Pattanakkad), which made them select the place for the plant at pattanakkad.

LOCATION OF THE PLANT

Cattle feed plant; pattanakkad is located in a beautiful spot in the southern boundary of thuravoor

panchayat in cherthala taluk in Alappuzha district of Kerala. The location of the company is at

the boundary of the pattanakkad and thuravoor panchayat.The plant is situated in between

Alappuzha and Ernakulum, almost as its middle, Alappuzha town, which is one of the important

towns for trade commercial activities. There are enough transportation facilities because of direct

routes from Kochi to Alappuzha. Nowadays railway facilities are also available.

FAVOURABLE FACTORS

When the starting of the plant is taken into account, it has been made possible during that time

because of various favourable factors like:

1. Economic Factors

Demand from Local Customers.

Transport Facilities.

Availability of Skilled Labours.


MILMA FEEDS

2. Geographical Factors

Availability of Raw Materials.

High Fertile Soil.

Climate.

GOVERNMENT ASSISTANCE

About 12 acres of land was acquired by the government by changing the residence of the land

owners and handed over to the KCMMF Ltd for the construction of the plant. This was indeed a

great help by the government or else KCMMF would have been in large crisis. Time to time the

government has also given financial assistance to the plant.

OUR ASSOCIATES

Milma is in constant touch with other organizations in this sector.it is only through this active

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

today.

Our Chief Associates are:

National Dairy Development Board

NDDB under the guidance of Dr.Varghese Kurian set up the K.C.M.M.F Ltd in 1980.ever since

then; there has been a very close co-operation between the NDDB and the federation. The

Operation Flood Programme was started by NDDB and has been the funding agent for the

Operational Flood Programme in Kerala.


MILMA FEEDS

Amul

The dairy co-operative in Gujarat have been the inspiration for the development of such a vast

network of dairy C0-operative in Kerala. Among the Co-operative in Gujarat, the Kerala District

Co-operative Milk Producers Union (KDCMPU) is the first in this sector. Our Co-operative are

called "Anand Pattern Co-operative Societies” (APCOS).

Government of Kerala

The phenomenal success of the dairy Co-operative in Kerala could not have been possible

without the foundation of the Animal Husbandry Department, Dairy Development Board and

Kerala Livestock Development Board of the government of Kerala.

COMPETITIVE STRENGTH

Milma is considered as one of the leading manufacturer of milk products in Kerala. There are a

number of competitors in these filed. Leading competitors in this field are K.S. Cattle Feed,

Godrej Cattle Feed and Kamadhenu Cattle Feed. All these products have established a market of

their own. There is little exception for our product. Since we are producing high quality product

at a reasonable rate, we are having a large number of customers. Our company being a

government undertaking the products is distributed to the customers at subsided rate. This is the

main highlight of our company. Our products are of exceptional quality and are readily available

in the market. We have a wide network of distribution system in our organization. This helps us

to distribute our products to our valuable customers within no time. As a result our products are

easily distributed to the rural areas in split seconds.


MILMA FEEDS

FUTURE PROSPECTS

Being developing production unit milma cattle feed plant has been always having certain dreams,

which were all fulfilled with the passage of time due to the efficient machinery and management

staff. Earlier a prospect was the Pelletization of the milk. This too was fulfilled about a year ago.

Now they plan to stop mash production and shift over completely to pellet production due to the

increasing demand of the pellet feed.

PRODUCT PROFILE

Milma produces and markets cattle feed. Milma has the capacity of producing 600 metric tons of

cattle feed plant. Milma distributes the cattle feed through Anand Pattern Co-operative Society

and other channel at relatively lower price.

Milma have a range of products from wholesome pasteurized milk to pure ghee, creamy butter,

nourishing sterilized flavoured milk, ice creams and cattle feed. All the products are strictly

adhered to the PFA rules and are sent to the market only after stringent quality checks. A

marketing chain consisting of 1500 outlets, across the state ensure accessibility of our products

to one and all. Our commitment to the quality of milk that we deliver starts right at the doorstep

to the village producers. The products of cattle feed plant, pattanakkad, Alappuzha are cattle feed

and milma min (Vitaminised Mineral Mixture Cattle Feeds are sold under the brand name

Milma, Gomathi, Pellet, Gomithra By Pass Protein, Govardhini Mash and High Energy Feed.

Due to the recommendation from customers milma have come out with pellet cattle feed. Milma

have taken valuable measures to maintain quality rom the time of purchasing raw materials

throughout production.


MILMA FEEDS

ORGANIZATION STRUCTURE

The organization chart and the associated information show who reports to whom and how tasks

are both divided up and integrated.in the cattle feed plant at pattanakkad, the senior manager is

the apex designation. Six important departments are working under his position. They are

finance department, production and maintenance, marketing, personnel or H.R.D, Purchasing

and Animal Nutrition Department.

The company is under the guidance of senior manager. All the other positions of department

manager except purchasing department are known as assistant manager. The detailed discussion

about the structure of the company is included in the organization structure. The system shows

the low of activities involved in the daily operation of business including its core process and its

support system. Modern techniques are applied in this organization. The organization is fully

conputerized.in the cattle feed plant at pattanakkad, the bills are computerized. The accounting

section, purchase section, H.R.D section are fully computerized.


MILMA FEEDS

ORGANIZATIONAL CHART

DESCRIPTION

MANAGER (F) – Manager (Finance)

AM (P&A) – Assistant Manager (Personnel and

Administration)

AM (P&M) – Assistant Manager (Production and Maintenance)


SENIOR MANAGER

AM

(P & M)

AM

(P & A)

AM

(QC)

MKT

(OFF)

A.S.OMANAGER

(F)

Asst. A/C

Officer

Accounts

Officer

Sr.

Asst

Jr.

Supdt

Jr.

Asst

Off.

Attndr

Store

Attndr

Sr.

Asst

Jr.

Asst

Jr.

Supdt

Lab

Technician

Chemist

ANO

Dy

ENGINEER

Dy

ENGINEER

Off.

Attndr

Skilled

Worker

Technician

Tech

Supdt

Dy

ENGINEER

Off.

Attndr

Lab

Attndr

MILMA FEEDS

AM (QC) – Assistant Manager (Quality Control)

MKT.OFF – Marketing Officer

A.S.O – Assistant Store Officer

Dy Engineer – Deputy Engineer

A.N.O – Animal Nutrition Officer

Asst. A/c Officer – Assistant Accounts Officer

Tech.Supdt – Technical Superintendent

Jr.Supdt – Junior Superintendent

Sr.Asst – Senior Assistant

Jr.Asst – Junior Assistant

Off.Attndr – Office Attender

Lab Attndr – Lab Attender

DEPARTMENTAL STUDY

Departmentation is the process of grouping activities into units for the purpose of administration;

in other words, it denotes grouping of related jobs and activities without violating the principal of

homogeneity over which an executive has authority to exercise and assert.

Every organization needs a well – established administrative set up for efficient functioning. The

cattle feed plant in Pattanakkad is also having an established marketing , finance , production ,


MILMA FEEDS

purchasing , stores , quality control and personal & administration department. These

departments are under the supervising of experienced and competent officers. All the

departments are under the control of department heads. These department heads are controlled by

general manger.

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

Marketing Department

Finance Department

Purchasing Department

Production Department

Personal & Administration Department

Stores Department

Quality Control Department

INTRODUCTION

According to Edwin B. Flippo, “Human resource management is concerned with the

procurement, development, compensation, integration and maintenance of personnel of an

organisation for the purpose of contributing towards the accomplishment of that organisation

major goals and policies”.


MILMA FEEDS

The department is paying an important role in both personnel and administrative function of an

organization. The personnel management is concerned with procurement of right person for the

right job at the right time, so work can be

done easily.it is the task of the personnel

management to deal with the problems of the

personnel to have consistent work force.

The personnel department is the major department, which assist all other department in the plant

for carrying out their function. This department helps to procure a good relationship between the

management and the employees in the plant. The personnel management is also concerned with

the proper payment of wages and salaries, motivating employees by giving incentives,

department of individual providing better working condition for achieving maximum

productivity and efficiency.

The personnel department functions within the circle of standing orders, staff regulations, pay

structures, promotion policy etc., framed by the K.C.M.M.F. It goes without saying the provision

applicable to the company under various acts namely the;

Factories Act

Industrial Disputes Act

Kerala Co-operative Milk Marketing Federation Act,

Payment of Bonus Act duly followed in framing the policies of the company.

STRUCTURE OF PERSONNEL DEPARTMENT


ASSISTANT MANAGER (P&A)

MILMA FEEDS

FUNCTIONS

Personal department is trusted in their aspects concept such as recruitment ,retainment and

retirement.in this connection the important functions of personal manger is the recruitment of

employees, selection, placement, promotion, transfer, training and development, wages and

salary administration, welfare of employees etc.

The Function of personal department also includes regulation of attendance, maintenance of

records, advice the management on recruitment of staff, provide guidelines to the security officer

for the effective implementation of security measures etc.

MANAGEMENT

The management of the cattle feed plant, Pattanakkad is done by the elected members of the

Trivandrum regional co-operative milk producers union (TRCMPU).the board takes all policy


SENIOR ASSISTANT

JUNIOR ASSISTANT

OFFICE ASSISTANT

SENIOR ASSISTANT

MILMA FEEDS

level decision and planning. The board of federation meets seven times during a year. The

managing committee takes all major operational decisions like recommendations of pricing

strategies to meet the challenges in the market.

HUMAN RESOURCES

As in the past the federation has taken active role in the formulation of the personnel policies,

framing of common service rules, finalizing long term settlement, bonus etc.an ambience of

cordial industrial relation is maintained.in spite constraints at various levels, the smooth

industrial relationship yielded rich dividend in enhancing the productivity. Employee turnover

was negligible during the year.one of the major assets of this organization is its human resource.

There is a pool of skilled efficient and qualified personnel. They work hard to achieve the goal of

the organization. The company makes continuous effort for the skill upgradation of the

workforce by deputing personnel for on the job training as well as orientation courses, seminars.

RECRUITMENT & SELECTION

According to Edwin Flippo, “Recruitment is the process of searching for prospective employees

and stimulating them to apply for jobs in the organisation”.

Recruitment of new employees in the cattle feed plant was formerly done through employment

exchange by selecting the candidates recommended by them. This type of recruitment was

adopted till 1995. Later the government brought the PSC, now Kerala Public Service

Commission does the recruitment, the selection by direct and indirect selection. Temporary

employees for six months are recruited through employment exchange and appointments on the

contract basis .there are 181 employees including the executives in the company.in that nearly

130 are permanent, almost 50 are temporary.

QUALIFICATION


MILMA FEEDS

Qualification required for appointing a person as a junior assistant is graduation with

PGDCA.For appointing personal officer, Marketing Officer, Accounts Officer etc. needs MBA

with specialization in the respective field. Accounts officer must be chartered accountant.

PROMOTION

Milma is giving promotion in every five years and grade is being given in every eight years, to

those whose promotion is not possible. Promotion is actually shifting a person from lower

position to a higher position carrying higher status, more payment, increase responsibility etc.

Promotion shall be at the discretion of management. The basis for promotion will be seniority,

suitability of the post, efficiency, skill etc.; of workers in lower posts for giving promotion the

top management also considers all the condition such as experience etc.

TRAINING & DEVELOPMENT

According to T.N.Chhabra, “The purpose of training is to bring about improvement in the

performance of work.it includes the learning of such techniques as are required for the better

performance of definite tasks”.

The workers are given job training regularly.in case of new technological improvement senior

operators are sending to Anand, Gujarat where NDDB males arrangement s for training. The

managers also have to undergo training programme at Trichur or at any place decided by the

federation from time to time. The managing board of federation frames the policy regarding

training of employees and the personnel department of the plant complies with it.

The head office schedules officers for training. The training fee payment is met by the KCMMF

for workers education. There are central govt. offices in every district. NIPM ( National Institute

of Personnel Management ) provides spot training and Centre training through integrated training

techniques.

WAGES & SALARY ADMINSTRATION


MILMA FEEDS

The salary packages given to various grades of employees always differ, on account of the

various act and agreement extended by the federation. However, the package has some common

things. They are:

Basic Pay

Dearness Allowance

House Rent Allowance

Minimum Increase of Basic Pay By 18.5 %.

The other allowances enjoyed by the workers are:

Night shift allowance

Washing allowance

Stitching allowance, etc.

INDUSTRIAL RELATION

The relation between the management and workers is always cordial and peaceful. There are

mainly 4 labour unions in the plant. Among the four unions, the first has a control over a large

section of workers, since the number of workers is more than 100.The joint conference work

committee, which includes the management employees and union leader’s forms the decision

about working with new system in the plant.

LEAVE

All employees are entitled a casual leave for 12 days in a year. Employees are also entitled for

commuted leave and earn. Medical leave for 15 days with full salary is also permissible.14

encashment leave is also available for every permanent worker.

DISCIPLINARY ACTION


MILMA FEEDS

To ensure a disciplinary action from the part of both employees and the workers the management

has put forward standing order and code of conduct within which they have to act. Disciplinary

actions will be taken if the workers are doing some kind of misconduct, fraud, theft, dishonesty

and absence during working hours. Any misbehavior from the part of employees is taken into

consideration and finds suitable remedy for the same by the personnel manager, charge sheet is

also issued from the personnel department.

Punishment for anti – disciplinary action are:

Warning

Increment barring or fine

Suspension

De promotion

Dismissal

GRIEVANCE HANDLING

In every company there will be complaints, if the company is able to solve the problems during

the initial stage a big problem can be avoided. In milma the complaints of the workers are solved

during the initial stage itself. The problem will be handled by the shift engineer, if he is not able

to handle it will be taken to the HR department and if he cannot handle it will be taken to the

work committee for a discussion. The grievances have to be submitted in a written format. If the

customers is have a complaint or grievance against the Federation or any of its units, they can

contact the Public Grievance Committee headed by the Senior Manager (Quality Control),

KCMMF Ltd, Milma Bhavan, Pattom, Thiruvananthapuram – 4 for redressal. If complaint is

about bribes or financial irregularities they have to approach the Chief Vigilance Officer,

KCMMF Ltd, Milma Bhavan, Pattom, and Thiruvananthapuram.

STATUTORY & NON – STATUTORY WELFARE


MILMA FEEDS

The milma feeds is providing statutory as well as non – statutory welfare to the workers. They

are providing Basic Pay, Dearness Allowance and also Night allowance irrespective of the pay

scale. Following are the benefits which are enjoyed by all the permanent workers of the company

other than salary:

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

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

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

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

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

protecting their health

Workers of production department will be given Uniform washing allowance of Rs.35

per month. Two Soaps will also be provided to the workers in every month.

TRAINING CENTRE

The ideology of placing the instruments of progress in the hands of the farmers themselves, an

orientation programme was started way back in 1984 and the training needs were met from

Edappally in Ernakulum District. During the initial period NDDB came forward to help us in

providing financial assistance as grant for meeting the training center expenses. Under North

Kerala Dairy Project - Phase I, Swiss Development Co-operation provided Rs. 29 lakhs as grant

for establishment of a full-fledged training center with hostel facility in the land adjacent to

Trichur Dairy. The training center was established and started functioning from the new premises

from 2.1.1992 onwards and it provides training courses for Presidents, Secretaries, Milk Testers,

Milk Collectors of Anand Patern Co-operative Societies, Milma agents and Milma staffs.

APPOINTMENT


MILMA FEEDS

The employees are appointed through employment exachange.They are appointed by conducting

an interview with reference to employment exchange. Permanent employees are appointed

through test and interview. Around 73 temporary workers are appointed through employment

exchange for a period ranging from 6 to 12 months.

RETIREMENT

The minimum age of appointment of an employee is 18 years and the retirement age is 58

years.an employee can join the company as a junior worker and can attain the maximum grade as

technical grade – 11 after various years of service.

TRADE UN IONS

There are mainly four trade unions in the cattle plant. They are INTUC, CITU, AITUC and

BMS.All the permanent workers of the plant are members of any one of the trade unions. It is to

be noted that only permanent workers have trade unions while the temporary workers are not

members of any trade unions. Also the loading and unloading workers have separate trade unions

for them.

TIME OFFICE

Time office is a confidential department and which has the following functions:

To maintain the attendance record of employees.

Maintaining leave records

Recording of leaves, shifts, late time etc.

To prepare daily attendance record of each employees

Recoding of employees arrival, departure etc.

To give a detailed report of the employee attendance to the finance department

ATTENDANCE MAINTENANCE


MILMA FEEDS

The things considered in attendance maintenance are worked days, absent days, leaves taken,

etc. The attendance maintenance is mainly done for salary preparation or calculations of salary.

Every worker has an ID cards which they have to punch in the attendance recorder while

reporting for duty as well as while going out after their duty. The workers coming late are noted

and their attendance will be affected accordingly. The worker or employee coming late up to half

an hour will lose half an hour attendance. Workers late beyond that half an hour will lose half

day attendance. Workers are permitted to go early before their shift gets completed by filling an

early departure form. The provision of late arrival and early departure is permissible only 3 times

a month.

SECURITY

Security guards are appointed in the company wo plays an important role in protecting the

factory from theft and misappropriation. Any person entering the factory should report at the

security cabin and has to enter details there. After granting permission only they can enter.it is

also applicable to the vehicles coming with raw materials and the vehicles going out with the

finished products. The security personnel move in move out of the factory premises. Security

personnel are not the regular employees of the company.

HOLIDAYS

The company allows 13 holidays in a calendar year. National holidays and festivals holidays are

the two types of holidays in a company. National holidays include:

Republic Day,

Independence Day,

Gandhi Jayanthi.

CANTEEN & RESTROOM


MILMA FEEDS

Workers are provided with canteen serving nutritious food at reasonable rate. The canteen is run

on contract basis for three years. Restroom facilities are also provided for employees having

sufficient ventilation, lighting, fan, television and locker facility for each employees. A separate

restroom is also provided for loading and unloading workers.

MANPOWER PLANNING

In the company during all the shifts a control room operator, pellet mill operator, boiler operator

is compulsorily required. The employees work in rotating shifts. Manpower planning is done for

a week by the Assistant Manager (Production & Maintenance).

COLLECTIVE BARGAINING

Under industrial dispute act 1947, collective bargaining is a process of joint decision making and

basically represents a democratic way of life in industry.it is the prices of negotiation between

forms and workers representatives for the purpose of establishing mutually agreeable conditions

of employment.it is a technique adopted by two parties to reach an understanding acceptable to

both through the process of discussion and negotiation.

Thus collective bargaining:

Attempts in achieving disciple in the industry.

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

participate.

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

involved.

Not only involves the bargaining agreement, but also involves the implementation of

such an agreement.

Is a flexible approach, as the parties involved have to adopt a flexible attitude towards

negotiations.

CASE STUDY


MILMA FEEDS

The unloading workers went on strike demanding that they should be made as the permanent

employees of the company. During the strike they worked only till 12 noon and they did not

worked after 12 noon. Their strike affected the working of the company.

SOLUTION

In order to stop this strike they have to conduct a meeting, with the District Labour Officer,

Assistant Manager (Personal & Administration) and the representatives of the various Trade

Unions, which will help to come out with some successful solution for the problem. May be the

first sitting may not be successful, so a number of sittings may be needed to solve the problem.

INTRODUCTION


MILMA FEEDS

For every organization easy functioning there should be a good and efficient purchase

department.in milma cattle feed plant materials are purchased in bulk qualtities.Raw materials

are purchased from states like Tamil Nadu, Karnataka, Andhra Pradesh, Uttar Pradesh, Punjab

and Haryana. The major raw materials Rice-Bran is purchased from Punjab and materials such as

Maize and Sunflower are purchased from Karnataka. Rice-Bran is directly purchased from

producers.

Most of the time around 2000 tons of raw materials are purchased. The company can reap the

advantage of purchasing materials in bulk qualitities.Materials are purchased according to the

specification provided by the nutrionist, who is the head of the quality control department. Some

materials are available in the market only in certain period, after its season is over there are

chances of short coming and reduction in quality. If some ingredients are costly, the company

will substitute it by purchasing another material. This helps the company to maintain quality of

finished products and its price.

Purchasing is the main function carried out by the purchase department. Raw materials are

purchased mainly from Tamil Nadu, Karnataka, Andhra Pradesh, Punjab and Uttar Pradesh. The

order for purchase is produced according to the requirements from the stores. The head office of

milma makes purchase order for their two cattle feed plants. The head office places order for

three months.to avail the advantage of bulk transaction, the purchase dairy consumables and

cattle feed are centralized. The purchase committee carries out this successfully.

In these recent years milma have developed a successful and loyal vendor base. This ensures

regular supply of quality raw materials at competitive process. Milma could manage cost of raw

materials at 74% of the selling price of cattle feed, which is a new benchmark of completing the

competiveness of purchase. The purchase department prepares registration notes and purchase

orders.

Payment to vendors is also done by the purchase department. The freight and unloading charges

are given by the department and it is deducted from the payment to the vendor.

The natural raw materials used for the cattle feed production in the milma feeds, pattanakkad are:


MILMA FEEDS

DORB {De – Oiled Rice Bran}

Ground Nut Cake

Sunflower Cake

Wheat Flakes

Cotton Seed Cake

Maize

Mustard Cake

Jowar

Ginger

Tapioca

Molasses

The chemical raw materials used for the cattle feed production in the milma feeds, Pattanakkad;

Mineral Mixtures

Calcium Powder

Vitamin

Powdered Salt

PURCHASE PROCEDURE


MILMA FEEDS

QUALITY OF MACHINE AND

TOOLS

The peller machines used for manufacturing cattle feed are Cremanch machines from

Netherlands. The system for buying machines and tools for the plant is by giving advertisements

in dailies and the one who quotes the lowest price will get the order. Importance is also given to

quality. To coincide with the 10th Five Year Plan the firm has initiated action for long term

planning. The objectives and goals are being set for the creation of required infrastructure

facilities to handle the growing procurement in the coming years. The major trust areas for the

federation are Cattle Feed, Milk Marketing Total Quality Management, Human Resources

Development and Services. The strategy aims at defining the objectives of the organization; its

major programmes and draws out the action plan to reach this objective.


DEMAND

ENQUIRY

FINANCING

(FINALIZING THE COSTS)

BUYING

MILMA FEEDS

INTRODUCTION

The production department is one of the major departments in the cattle feed plant. The assistant

manager is in charge of the production department. The production department has an overall

control on the production function and maintenance of the mechanics.it regulates the input and

the output with respect to the market demand.

RAW MATERIALS

In the cattle feed plant a bulk of natural as well as chemical raw materials is needed. The raw

materials are brought from different parts of Andhra Pradesh, Gujarat, Tamil nadu and

Karnataka. The government itself produces some cereals like rice; wheat etc.one of the

ingredient salt is brought from the Kerala itself. The machines used in the plant are:

Grinding Machine

Mixing Machine

Air Compressor

Bagging Machine

Aspiration System

Electric Controller

ANNUAL OUTPUT

The output the milma cattle plant is producing now is in the form of mash (powder) and in the

pellet form. At the beginning the factory was able to produce only 100 metric tons per day.

But because of high competition they have started producing 300 metric tons per day. Because of

this the annual production is now about 70,000 metric tons.


MILMA FEEDS

STRUCTURE OF PRODUCTION DEPARTMENT


ASSISTANT MANAGER

(PRODUCTION & MAINTENANCE)

DEPUTY ENGINEER


ASSISTANT MANAGER


TECHICIAN

SKILLED WORKERS

WORKERS

MILMA FEEDS

PRODUCTION PROCESS

The milma feeds is following a highly mechanized and systematic working process using the

most modern machinery and superior man power. All actual production is carried out by heavy

duty computer controlled machines.

SUPPLY OF RAW MATERIALS

The important raw materials used in the production of cattle feed are De – Oiled Rice Barn,

Sunflower Cake, Mustard Cake, Groundnut Cake , Jowar , Wheat Flakes, Wheat Bran, Maize,

Cotton Seed Cake, Rice Polish, Molasses, Ginger, Tapioca, Mineral Mixtures, Pepper, Salt,

Coffee Husk, etc.

DUMPING

The production process starts with the dumping of raw materials in to the conveyor belt under

the floor of the godown.The raw materials are dumped into the conveyor through the grills. The

materials are dumped into the conveyors are automatically transported into the storage bins.

There are 18 storage bins for storing the different types of raw materials.

BATCHING

From the storage bins the raw materials will come to the vibro screen for purification, where

unwanted particles that come accidentally to the raw materials are removed for ensuring the

health of the animals that consume the cattle feed produced by them. These unwanted particles

include stone pieces, wood pieces etc.

MOLASSES MIXING

After purification, the raw materials will be transferred to the molasses mixer through elevator

for mixing molasses .The required quantity will be added to the raw materials .The molasses is


MILMA FEEDS

used as flavoring agent in the Cattle feed. The molasses is the one of the major component in the

cattle feed.

PELLET FEED PRODUCTION

Production of cattle feed in the pellet form requires additional process. During the olden days in

this plant there was no provision for pellet production. Recently they installed the pellet mill for

producing the cattle feeds in pellet format. There was more demand for cattle feed in pellet form

in the market because of its high durability, so they installed the pellet mill to scoop the market

demand, so that they can earn more profit.

In this process the mash is converted into pellet form, for that purpose the mash in the molasses

mixture is transferred into pellet mills through feeder conditioner. In the pellet mill, the cattle

feed in mash form undergo different process such as steaming and boiling etc., finally we will

get in the pellet form feeds.

BAGGING

There are two bagging machines, which can be worked simultaneously. The finished products

collected in the bins will come through the opening of the bigger machine. When 50 kg of feed

gets filled in the bag, it automatically gets detached and falls into the conveyor just below the

machine. The filled bag moves through the conveyor while it is going through the conveyor the

mouth of the bag will be passed through the sewing machine after placing the how to use the

card in it, which will be helpful to the farmers who buy the product.

HANDLING

The stitched bag will go through the conveyor to the godowns, where finished products are

stored. From the conveyor the workers will get it can they will place it in the proper place. The

plant is having 3 shifts. There are provisions for producing mash and pellet in a single shift. In

the bagging section there are eight workers in a shift and in the handling section there are ten

workers.


MILMA FEEDS

INFRASTRUCTURE OF THE COMPANY

Two Silos of 600 Metric Ton Capacity each.

Three Molasses tank of 650 Kilo Litre each.

Two Boilers of 2 Ton per hour capacity

Two diesel Generator Sets of 500 and 250 KW/Hr.

Two bagging machines having a capacity of 240 and 450 bags per Hour.

Two pellet cooler having cooling capacity of 10 Ton per hour

Ten porches for storing Raw materials

Two salt Conveyor for moving the finished goods.

Three Compressors.


MILMA FEEDS

INTRODUCTION

The quality control wing of the federation renders technical and legal assistance to primary dairy

Co - operation and regional milk unions. Quality of outgoing milk has been maintained with the

standards.in addition to the testing of milk and milk products at the quality control laboratories

attached to the dairies. Samples of milk and ghee are also being tested at the government

analytical laboratories. Reports received from the government analytical laboratories have

indicated satisfactory quality level in all samples.

The quality control department deals with:

Conduction and Inspection test of materials and product.

Advising ways and means for improving the quality of the product.

Determining tolerance that is in range with in which deviation in actual quality from standards will be acceptable.

In the cattle feed plant, the quality control section is very effective and strictly carried out by a

proper investigation of products before distribution and before production. The quality tests are

done based on standards lay down by the bureau of Indian standards and tests.

The head of the department make an ideal formula for meeting the requirements of animal with

minimum loss to the organization. He turns controls and monitors the activities of the

subordinate in the department. The post is occupied by an expert person intended in spelling up

international standards and quality.


MILMA FEEDS

STRUCTURE OF QUALITY CONTROL DEPARTMENT


LAB ASSISTANT

LAB TECHNICIAN

CHEMIST

ANIMAL NUTRITION OFFICER

(ANO)

ASSISTANT MANAGER

(QUALITY CONTROL)

MILMA FEEDS

TESTING & EQUIPMENT INVOLVED

MOISURE ANALYZER

The conventional method of a moisture analyzer using air oven which required 12 hours foe

getting the result is been replaced by an advanced infrared instant moisture analyzer with which

the result can be obtained within ten to fifteen minutes.

CRUDE PROTEIN ANALYZER

The latest and the most advanced KJELTEC analyzer capable of delivering 24 to 36 analyses per

day replaces the conventional method employed, which consumes more time and labours.

PERCENATGE OF SAND & SILICA ANALYSIS

This analysis is conducted using ‘muffle fumace’ at pattanakkad unit.it is one of the advanced

laboratories equipment at its time in Kerala. On the basis of contends cattle feed can be classified

into two:

TYPE 1

TYPE 11

The contents of the two types are shown below:

QUALITY PROTEIN (MIN) FAT FIBRE SAND SILICA (MAN)

TYPE 1 22 % 3 % 8 % 3 %

TYPE 11 20 % 2.5 % 1 % 4 %


MILMA FEEDS

The nutritionist who controls the quality of cattle feed heads the quality control department in the

company.an assistant quality control manager and food chemist subordinates him. Normally

every week the nutrionist has to implement the formula of cattle feed which is in turn governed

by the availability of the raw materials or depending on the seasonal requirements. The main task

of this department is to completely analyze the raw materials. After producing, the products are

taken in to the quality control department.

The quality control lab is operating for this purpose. Also the raw materials are taken for quality

checking. The lab has certain parameters. Based on this they categorize the products. Milma

cattle feed plant pattanakkad got an award from the Kerala Agricultural University for their best

quality products. The quality control department is regulated by the standard fixed by the ISI or

bureau of Indian standards. The bureau of Indian standards has stipulated the contents that a 50

kg bag of cattle feed should contain.

Milma cattle feed plant; pattanakkad mostly produces Type 11 Cattle Feed. The quality control

department of the company is headed by an animal nutrition officer who is assisted by a chemist

and a lab assistant in discharging his function.in cattle feed plant, the quality control is very

effective and carries out proper investigation of products before distribution.Mainatining quality

tests are done based on the standards laid down by the bureau of Indian standards. Quality of the

product depends on the interaction of materials, men, machine and manufacturing processes.

In the cattle feed plant, the raw materials are selected first then only it goes to the production

department. Techniques of quality control are of two types:

Physical Verification.

Chemical Verification.

The physical verification includes visual observation only. But in chemical verification, the

qualities of the raw materials as well as finished goods are being done using various chemical

analyses.


MILMA FEEDS

INTRODUCTION

The purchasing section prepares the purchasing order or the raw materials only ater proper

checking. The store officer is in charge of the store section. He should verify the material

received with the report. He should send the copy of materials received to the accounts

department for verification. There are two stores under the store section:

General Store or Raw Material Store Section.

Engineering Store Section.

GENERAL STORE SECTION (RAW MATERIAL STORE SECTION)

General store section deals with the preparing and controlling of raw materials and finished

products. The raw materials brought into the plant are weighted first in the general store using

Weight Bridge later put into the production processes.

ENGINEERING STORE SECTION

Engineering store section deals with keeping of spare parts of machines. The engineering stores

are in charge of supply of engineering or machine spare parts as required by the production

departmnets.The factory machines,tools,spare parts or any equipment if found to be replaced

must be done by the engineering section as per instruction from the production department.

MAIN FUNCTIONS

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

Keep the stock safely and record the Quantity.

Provide the stock as and when required by the production unit.

Inform the purchase department in case of stock deficiency.


MILMA FEEDS

The store section establishes adequate control over the raw materials for production, packing

materials, finished products and old gunny bags at all levels of storage and delivery. When a

consignment of raw materials arrives before weight, the samples from each truck will be taken

for analysis in the lab.After the results, the load may be accepted or rejected. After that the

accepted truck can be weighted. The senior assistant (Weigh Bridge) scrutinizes the party invoice

and enters the details in the computer. Actual weight will be taken and the acknowledged

quantity will be recorded in the computer.Immeditely weighing slip will be recorded in the

computer.

Immediately weighing slip will be prepared in triplicate.one will be issued to the cashier for

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

specialized software known as Milma Integrated Information System is used in the store which

gives details about the stock availability of various raw materials in the various godowns of the

company. After a consignment is accepted the store keeper contacts the security cabin informing

them to send unloading workers into the godown for unloading the raw materials. The unloading

workers are then given instruction as to stack the raw materials at the designated locations.

STORES DEPARTMENT STRUCTURE

INTRODUCTION


ASSISTANT STORES OFFICER

SENIOR ASSISTANT

STORES ATTENDER

MILMA FEEDS

In the words of William J. Stanton, “Marketing is a total system of interacting business

activities designed to plan, price, promote and distribute want satisfying goods and services to

present potential customers”.

The marketing department is headed by the marketing manager and under him two assistant

mangers.one for sales and dispatch and the other for customer service and sales promotion. Here

the first process is identifying the consumer need, after identifying the consumer need it

produces goods according to the needs of the consumer. For this the product should be neatly

designed.

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

systems. The transaction are sales order, promotions order etc. done with the help of systems.

The marketing operational control activities include the timing and training of the sales force,

scheduling of sales and promotion efforts.

The milma cattle feed plant pattanakkad has a special department for marketing their products.as

it faces stiff competition from other sectors, about 20% of the cattle feed are marketed through

private dealers and other agencies.at the same time cattle feeds are distributed through APCOS at

reasonable rate.

Extremely good quality products are the trademark of milma. Mainly it helps to boost the market

demand for their products. Advertising campaigns also helps to keep the product demand. Milma

could market the entire the fed manufactured even during recession in the secor.it could be

achieved because of the high quality standards of milma feed and it is a matter of pride that we

have completed successfully with the established ourselves in the market and played the role of

the trendsetter.

Balanced cattle feed is one of the major inputs provided to the dairy farmers in the state by the

federation. The 300 MTPD capacity plant at Pattanakkad is catering to the dairy farmers under

the TRCMPU and part of ERCMPU.in addition to it feed is supplied to special livestock

breeding programme of the government of Kerala, government farms, and local bodies under

their decentralized planning.

MARKETING HIGHLIGHTS


MILMA FEEDS

Most economical price of cattle feed in the market.

Good quality cattle feed

The distribution channel is limited.

FEATURES

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

More than 90% of the output of the plant is supplied to the farmers through societies, i.e.

owners and the customers are same for the company.

STRUCTURE OF MARKETING DEPARTMENT

FUNCTIONS


MARKETING MANAGER

SENIOR ASSISTANT JUNIOR ASSISTANT

MILMA FEEDS

Following are the main functions of marketing:

Finding markets for the product.

Marketing the products.

Conducting the sales promotion activities.

In CFP, the marketing department target mainly increased the demand and consumption of cattle

feed and this allied products by adopting measures. Customers of CFP products are not confined

to Kerala but other states like TamilNadu, Bengal etc.; directly come to the factory and get

required quantity. Trade and sale easy for milma cattle feed factory as there is only a single

product; ie.cattle feed.

MARKETING ACTIVITIES

Sales Promotion

American Marketing Association defines sales promotion as “Those marketing activities other

than personal selling, advertising and publicity that stimulate consumer purchasing and dealer

effectiveness such as display shows, expositions, demonstrations and various non-recurrent

selling efforts not in the ordinary routine”.

Sales promotion activates are mainly intended to bring about effective transfer in ownership and

in moving goods from the manufactures to the consumer.

ADVERTISING


MILMA FEEDS

American Marketing Association, Chicago, defines advertising as “Any paid form of non-

personal presentation and promotion of ideas, goods or services by an identified sponsor”.

Advertising is meant to pass on information to the prospective customers.it is one of the

powerful elements in the promotional mix advertisements have a great part in increasing the

demand for a product in the mind of the peole.The objective of advertising is effective

communication between producers and consumers. The milma feeds also publish meaningful

advertisements, which help to find out demand for their products in the market. The ultimate

purpose of advertising is to increase awareness. Advertisement through electronic media and

dailies are very essential to improve the marketing of the organization.

The cattle feed plant advertises in the following ways:

1. Publication of Notices:

Time to time, notices are published to proclaim any new intervention of the company.

2. Advertisement in Newspapers:

The newspaper is an important advertisement media, which helps to inform the people about the

quality of product.

3. Wall Writings:

They also serve as media to expose the quality of milma products.

MARKET SHARE

The market net turn over as per year is about 12 crore rupees. If the company is able to execute

the present orders as far as possible, it can hope to get about 75% of the total markets that is the

company to be computerized and must have more foreign collaboration on skills, especially

technical. The company is trying to concentrate on this aim.

PRICING


MILMA FEEDS

According to Clark and Clark, “The price of an article or service is its market value expressed

in terms of money”.

Pricing is a key element in the marketing mix. The price of the product should be related to the

achievement of marketing goals. Board of directors fixes the selling price of the product.

Considering the cost of raw materials and labour does this. The pricing strategy followed by

cattle feed pant is Cost Plus Margin.

DISPATCH SECTION

The marketing of milma cattle feeds is done through different ways.in the plant, there is a

marketing section headed by the assistant manager, marketing. Demand for cattle feed received

from societies, dealers etc, will be processed in the marketing section. The transaction of cattle

feed plant is done on contract basis. There is a contractor for transportation and he is paid as per

metric ton or on kilometric basis as per the agreement executed in this regard.

CHANNELS OF DISTRIBUTION

According to Philip kotler and Kevin Lane Keller, “Marketing channels are sets of

interdependent organizations involved in the process of making a product or service available for

use or consumption”.

The cattle feed wholesale marketing is mainly done in three ways:

o Through Co-operative Societies known as APCOS

o Through Dealers

o The Government Farms

1. Through Co-operative Societies known as APCOS


MILMA FEEDS

As APCOS is the basic level of the three-tier system, societies get cattle feed at a cheaper rate.

2. Through Dealers

The customers can buy the cattle feed through various retailers fixed by the marketing

department.

3. The Government Farms

The animal husbandry department runs many cattle feed farms. The milma cattle feeds are

supplied to these farms. Most of the cattle feeds they buy from the factory are used in the farm

itself.

COMPETITORS

The main competitors of milma feeds in Kerala are:

K.S. Cattle Feed

Sunandhini Cattle Feed

Nandini Cattle Feed

Kerala Cattle Feed

STRUCTURE OF CHANNEL OF DISTRIBUTION


MILMA FEEDS

INTRODUCTION

Finance is the backbone of every organization. All kinds of business directly or indirectly

involve the acquisition and use of funds. Financial management is the financial activity, which is

concerned with planning and controlling the firm’s financial financials. The finance department


CATTLE FEED PLANT

APCOS DEALERS GOVT.FARM

RETAILERS

CUSTOMERS CUSTOMERSCUSTOMERS

MILMA FEEDS

deals with all kinds of accounts related personnel, purchases, stores, marketing, work contract,

costing, budgeting, central excise etc. All financial transactions of the company are dealt by

CANARA BANK which has a branch in the company premises. The finance department is

headed by the finance manager.

IMPORTANCE OF FINANCE

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

start a business, to operate it and to expand or modernize its operations. Finance is required to

bring a business in to existence, to keep it alive and to see it growing.to survive in a competitive

world, every business has to manage scarce funds in a minimum costs or tries to invest funds in

various assets with a view to maximize the return on shareholder investments. More important it

tries to generate sufficient profit to fiancé expression and modernization of the enterprise and

secure stable growth. This management of finance is essential for the source of business.

SOURCES OF FINANCE

Milma cattle feed plant gets finance from:

Canara bank,

State Bank of Travancore,

District Co-operative bank.

The senior manager signs all the cheques.

ACCOUNTING STATEMENTS & ACCOUNTS

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

They are:


MILMA FEEDS

Trading & Profit and Loss Account

Bank Reconciliation Statement

Preparation of Budgets.

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

AUDIT

Three types of audit are done in this firm. They are:

Internal Audit

Statutory Audit

Tax Audit

FINANCE MANGER

The finance manager occupies an important and central position in the overall management of

the organization. He is in charge of the funds of the enterprise and their investemnts.He decides

the amount of capitalization, capital structure and investment pattern.

DUTIES & FUNCTIONS

Formulation of Financial Objectives.


MILMA FEEDS

To monitor all the financial transaction of the firm.

Deciding the amount of capitalization and working capital management.

Determining the capitalization.

Deciding the source of funds to be used and collection of funds from selecting source.

Distribution of profits.

To effect prompt payment of loans or debts availed by the firm

To arrange preparation of Trial Balance, Profit and Loss Account and Balance Sheet.

To scrutinize vouchers for payment.

PAID UP SHARE CAPITAL


MILMA FEEDS

The paid up share capital of the federation stood at Rs.150.34 lakhs as on 31.03.2003 against the

authorized share capital of Rs.500/- Lakhs of the 15034 shares as on date, TRCMPU, ERCMPU

and MRCMPU hold 6734,3067 and 5233 shares respectively. The capital mix of the federation

contain heavy dose of long term debt and to even out the financial risk it has to be balanced by

inducting sufficient equity share capital.

CAPITAL INVESTMENT

The milma cattle feed plant; Pattanakkad was started with an initial investment of about three

crores rupees. The firm collects this amount through a loan from National Dairy Development

Board (NDDB).again in 2003, another loan of three crores was taken from (NDDB) for further

modernization of the plant. A bulk of this amount was used for pettlization of the cattle feed,

before it was only made in the form of mash (power form).out of the amount taken from

NDDB,30% falls under the category of subsidy and is not to be paid. Remaining 70% is to be

paid with interest.

FINANCIAL RESULTS

Strongest austerity measures and value engineering has enabled the company to cut costs in

various heads. The company has been able to contain and restrict the cost of various fronts like:

Employee Cost,

Manufacturing Expenses,

Administrative Costs, etc.

STRUCTURE OF FINANCE DEPARTMENT


MILMA FEEDS

SWOT ANALYSIS


FINANCE MANAGER

ASSISTANT FINANCE MANAGER

ACCOUNTS OFFICER

JUNIOR SUPERINTENDENT

SENIOR ASSISTANT

STENOGRAPHER

JUNIOR ASSISTANT

MILMA FEEDS

STRENGTHS

Reasonably priced products.

Cordial Industrial Relations.

Centralization of Authority.

Efficient and Qualified Managers.

Well – Established Hierarchical Positions.

Experienced and Well Trained Work Force.

Fully Updated Management Information System.

The premier Organization in Kerala Produce a Variety of High Quality Cattle Feed.

WEAKNESS


MILMA FEEDS

Improper planning.

Centralized decision.

Inefficient advertisement.

Demand is more than supply.

Lack of adequate work force.

Average production is very low.

Time delay in availability of funds.

Bad attitude of workers towards training programs.

Recruitment and selection is done through P.S.C. The power is not in the hands of H.R

department.

OPPURTUNITY


MILMA FEEDS

After the boom in cattle breeding with the coming of Indo-Swiss and related projects

quality feeds are required by the new breeds, since the organization is a premier in this

sector it has unlimited opportunity.

Kerala, is known as the god’s own country is also known as the land of coconuts thus the

abundance of coconut cakes gives – the organization and opportunity to use those cakes

for the manufacture of cattle feed at a cheaper cost.

THREAT

Mo lasses is an essential ingredient for the manufacture of certain special variety of cattle

feed. The procurement of molasses in Kerala is completely under the regulation of

government of Kerala the procurement process is time lagging leading to a delay in the

required level of molasses.

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

of transportation cost and freight charges).there costs are excluded from the total costs by

the cattle feed manufacturing unit in the states from where milma is procuring its raw

materials.an increase in total cost would lead to an increase in the selling prices and a

reduction in the profit margin.

FINDINGS


MILMA FEEDS

The products are reasonably priced.

Heavy Work Load is seen in all departments.

Dedicated employees are seen in all departments.

It has a market where demand is greater than supply.

The decision making is centralized at the head office.

The company doesn’t have any exporting programme.

The recruitment of the company is done through P.S.C.

The firm is maintaining its high goodwill and reputation.

Best quality is the unique selling proportion of their products.

The company distributes their products through their own network.

Company maintains a perfect support between the employer and employee.

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

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

position.


MILMA FEEDS

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

competitors.

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

programme.

The milma CEP manipulates the activities of 3 trade unions by providing discriminatory

power to them.

They are providing good quality products to the consumer and consumer preference is

high for milma cattle feeds.

SUGGESTIONS


MILMA FEEDS

Sales promotion activities should be widened.

Advertisements campaign should be more powerful.

Make provision to further increase the average production.

Make provisions for selling the products in other states too.

Much research has to be done to increase the quality of the products.

The worker should be encouraged to participate in the training programmes.

The attractiveness of labelling should be more effective and be given a new touch.

The company should do job analysis and provide right kind of job to right person.

Make stronger control over loading and unloading worker who often create problems.

The company should take necessary steps for the improvement of recreation facilities.


MILMA FEEDS

The organization should implement effective promotional policies to upgrade the

work.

The management should provide incentives to the workers according to their

performance.

It is suggested that the system of job rotation should be done so that to avoid boredom

in their work.

The milma growing progressively therefore there was no need for selling the shares

of public sector undertakings.

Procurement of raw materials from south India alone would help in reducing the

transportation cost and freight charges.

The company should focus also on the consumer need. Establish a better corporate

image through co-operation and hard work.


MILMA FEEDS

CONCLUSION

Cattle feed plant was established 28th February 1985,since the company has been maintaining its

very goodwill and reputation.CFP plays an important role in the structure of Kerala Cooperative

Milk Marketing Federation Limited, (KCMMF).

The industrial visit and the study conducted for the preparation of this project immensely helped

me to make out the practical significance of the theories taught in the classroom for different

management areas. Milma CF has a good named and so there is no need of much sincere and

no –malpractices are going on there.it was set as a co-operative sector that has a bright future.

It has provided an opportunity to have an insight into the working of this undertaking. The study,

as a whole has revealed that this plant set up under co-operative sector is growing progressively

and that it has a bright future.

The finding of the study emphasizes and justifies the co-existence of public sector and private

sector undertakings in our national economy and the views of our national leader like Jawaharlal

Nehru. The planners and policy makers of the modern India should recognize the fact that it is

unnecessary and unwarranted to sell the shares of public sector undertakings which are managed

efficiently and which render service to the society.

The organisational study of cattle feed plant; pattanakkad has been beneficial for me I all

apects.it helps to familiarize with the practical side of the organization. It provides me an overall

idea different streams management mainly personnel, marketing, finance, operations, etc. of the

organization.


MILMA FEEDS

BIBLIOGRAPHY

www.milma.org

Milma Annual Report 2005 – 2006.

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

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

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

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

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

1990.

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

Company, 1996.


http://www.milma.org/

Documents

ORGANIZATIONAL STUDY @ MILMA FEEDS,PATTANAKAD