Project

K.V.M. C.E. & I.T. MILMA FEEDS

DECLARATION

We, RANJITH V.P. and SHABEER V.B. department of management

studies, K V M CE & IT, CHERTHALA, would like to declare that the project

titled “ORGANIZATION STUDY OF MILMA CATTLE FEED PLANT,

PATTANAKKAD” in partial fulfilment of the award of MBA Degree is my original

work.

Date: RANJITH V.P.

SHABEER V.B.

1


ACKNOWLEDGEMENT

At the very outset, I would like to give the first honour to GOD who gave

the wisdom and knowledge to complete this project.

I express my heartfelt gratitude to our principal K.N JAMES, KVM CE & IT,

Cherthala for having given me the opportunity to complete this project

successfully.

I take this opportunity to express my sincere word of gratitude and thanks

to my Director of the Department Management Studies, Dr. (Prof) CT Paul of

KVM CE & IT for his able leadership and guidance in all the official matter

regarding the project.

I wish to extend my sincere thanks to my Guide Bejoy J Parackel

, Department of Management Studies, KVM CE & IT for his valuable guidance

and support. I thank his for the timely suggestions and constant encouragement

that led to the accomplishment of this project.

I am deeply indebted to my guide Mr. PG RAJU, assistant manager and

other staffs of Human Resource Department of MILMA Cattle Feed, Pattanakkad

for their valuable guidance throughout the project and made this project a

success.

Last but not least I thank my parents, friends and all my well wishers who

had supported me directly or indirectly, during the project.

SHABEER V.B.

RANJITH V.P.

2


SYNOPSIS

EXECUTIVE SUMMARY

The national leaders of independent India adopted a policy of mixed

economy for the development of our mother land. The various five year plans

gave more emphasis for the development of infra structure and for the formation

and development of public sector undertaking. The ministry is now selling

controllable part of shares of public sector undertaking at profit. It is in this

background there are some public sectors and co-operative organisation

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

MILMA Feeds, Pattanakad, is one such undertaking under the co-

operative sector which is working at a profit. So it whould be much interesting to

study the different aspects of working of company to evaluate it’s progress,

prosperity and problems.

During our study we able to study the organisation in detail. The

organisation is having seven departments; they are: Personnel Department,

Purchase Department, Production Department, Quality Control Department,

Stores Department, Marketing Department and Finance Department. During our

study we able to interact with employees of entire department. So we able to find

their strength, weakness, opportunities and threat and also 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 programme,

performance appraisal, welfare etc.. the purchase department deals with the

purchase of raw material from Tamil Nadu, Karnataka, Andhra Pradesh, Uttar

Pradesh and Haryana. The production department is deals with the conversion of

raw materials that has been purchased from different locations into finished

3


products. The quality control department checks the quality of raw material and

also the product that they produce. The nutritionist who controls the quality of

cattle feed heads the quality control department of the company. The store

section establish the adequate control over the raw material 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 services and sales promotion. The finance

department deals with all kinds of accounts related to personnel, purchase,

stores, marketing, work contract, costing, budgeting, central excese etc.

4


CONTENT

SERIAL

NUMBER

CONTENTS PAGE

NUMBER

1. INTRODUCTION 7

2. INDUSTRIAL PROFILE 10

3. COMPANY PROFILE 16

4. PRODUCT PROFILE 17

6. ORGANZATIONAL STRUCTURE 19

7. RESEARCH METHODOLOGY 20

8. DEPARTMENTAL STUDY 23

9. PERSONAL DEPARTMENT 23

10. PRODUCTION DEPARTMENT 26

11. MARKETING DEPARTMENT 30

12. PURCHASE DEPARTMENT 31

13. FINANCE DEPARTMENT 32

14. QUALITY CONTROL DEPARTMENT 35

15. STORE DEPARTMENT 36

16. SWOT ANALYSIS 38

17. FINDINGS AND SUGGESTIONS 405


18. CONCLUSION 42

19. BIBILIOGRAPHY 43

6


INTRODUCTION

HISTORY OF MILMA

The wide spread exploitation by private ventures and as a measure for

counter acting the acute shortage of milk, a few cooperative milk supply societies

were started during the second and third decades of this century. The first dairy

cooperative societies were started during the second and third decades of this

century. The first dairy co-operative society was registered in 1913 at Allahabad

in UP and was called “Katara Co-operative Dairy Society”.

Between World War 1 and 2 a number of cooperative milk supply union

were registered in different state of India. The principle union among them were

the Madras cooperative supply union, the Surat city cooperative supply union,

the Calcutta milk supply union and Luck now milk supply union. By the end of

thirties there were 19 milk supply union covering 264 primary societies with a

total membership of 11262 or 44 members per society.

The Kerala Dairy cooperative milk producer unions (KDCMPU)

at anand (AMUL) was formed in 1964 and constituted an important landmark in

dairy sector as this was the first producer oriented dairy cooperatives in India.

The government of India decided to make arrangement for the supply of hygienic

milk to Mumbai city. This resulted in organized collection of rural milk produced in

Kaila district. The milk so collected was transported to Mumbai rail. This was first

organized link up of rural milk shed with a major urban market.Inspired the

tremendous success achieved by the Kerala dairy cooperative milk producers

union (KDCMPU),ministry of agriculture constituted on 26th September, 1965 a

national dairy development board (NDDB) to organize and supervise the

planning, execution of dairy development programmed on national scale and to

provide technical guidance to various states in setting up of project for overall

development of milk production, processing, and marketing in this country by

making their available on request. In 1969-70 the NDDB developed an ambitious

7


integrated scheme for development of dairy and marketing of milk, which was

properly known as “OPERATION FLOOD”.

COMPANIES MISSION AND VISION

MISION

Companies mission is “farmers prosperity through consumer satisfaction”.

VISION

To companies vision is “To constantly strive to provide valued customers

with the highest quality cattle feed with the best standard of services by our

passionate and focused workforces using state of the art technology ensuring

sustained growth and simultaneously ensuring dairy farmers delight by better

utilization of milk price and offering needed service of his/ her door step”.

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.

8


Produce and distributes quality cattle feed, milk, milk products, confirming

to stringent specifications of FPO,BIS, AGMARK and MMPO.

OUR MOTTO

The name ‘MILMA’ and its motto “your 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 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 transaction with you. We

undertake that without unnecessary delay we shall promptly communicate 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.

9


INDUSTRIAL PROFILE

OPERATION FLOOD

Operation flood is intended to reduce regional imbalance in dairy

development in under developed regions. It was remunerative linking to rural milk

producing centres with urban demand centres. Operation flood has three phases.

First phase aims at the procurement of milk from rural surplus areas to the urban

deficit areas. Second phase was started during 1980,s its outlay was 29 corers

and was utilised for construction of dairies. Kerala was included in the second

phase (1980-87) of operation flood.

In Kerala have three tier systems:

1. Village level

Village milk cooperative societies, which have the local milk producers as

its members, it collects milk from the local milk producers.

2. Regional level

Village cooperative units at the regional level to form regional cooperative

milk producers union.

3. State level

It is an apex body. All the three regional milk producers union united at

this level forming cooperative milk marketing federation limited.

KERALA COOPERATIVE MILK MARKETING FEDARATION

Milma is the popular name given to Kerala cooperative milk marketing

federation (KCMMF). Milma started its operation in 1980 with its head office at

Thiruvanathapuram.It was started under the Indo-Swiss project. The project was

launched in 1963 on the basis of a bilateral agreement executed between the

Swiss confederation and the government of India. The project has made great 10


strides in the improvement of livestock farming in the state. One of them is the

development of Swiss Brown, a cross breed suited for the state’s conditions. The

project is now managed by the Kerala Livestock Development and Milk

Marketing Board. It main motive was to implement the Operation Flood

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

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 dependent on milk production. The

project had 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 lack in 1977 to 21.86 lack in 2003 when the total

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 outsid

e 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, with 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 and independent entity.

THE NAME MILMA REPRESENTS

100 primary milk cooperative societies.

7.33 lacks farmer member.

Three regional cooperative milk producer unions.

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Ten dairies capable of handling 9.90 lacks litters of milk per

day.

Four milk chilling centres.

One milk powder plant of 10MT per day.

Two cattle feed plant with cumulative capacity of 500MT per

day.

A well established training centre.

5000 retail outlets.

Over 30000 people working directly or indirectly for the

functioning of Milma.

OBJECTIVES OF MILMA

To channelize marketable surplus milk from the rural

areas to urban deficit areas to maximize the returns to

the producer and provide quality milk and milk products

to the consumers.

To carryout activities for promoting production,

procurement, processing and marketing of milk and milk

products for economic development of the farming

community.

To build up a viable dairy industry in the state.

To provide constant market and stable price to the dairy

farmers for their produce.

To set up laboratories for quality control and research.

To conduct supervision and statutory audit of member

societies.

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MILMA – THE FARMERS ORGANIZATION

Milma is an organization of the farmers. They are the producers of the raw

material- milk; the shareholders of the organization and the chairman and Board

of Directors are are elected from among them. The farmers are members of the

APCOS ( Anand Pattern Cooperative Societies). The presidents of the APCOS

form the general Body of the Regional Milk Unions, which federate to form the

KCMMF.

Milma provides the members of APCOS with various

services at nominal/ concessional prices. They are:

1. Procurement of Milk

First and foremost, milma provides assured milk market

and procures milk from even the remotes societies. Twice a day our milk

collection trucks go to the societies and collect milk. In areas, which are not

accessible by road, other means of collections are employed.

2. Veterinary Service :

Milma’s veterinary services are the most popular

component of input activities. The veterinary wing operates two types

of veterinary routes, regular and emergency.

3. Cattle Feed Plants :

Balanced cattle feed is the major centralised input

provided to the dairy farmers of the state from the

federation. There is a high level of acceptability for this product in market.

4. Training centre

In keeping with the ideology of placing the instruments of

progress in the hands of the farmers themselves. An orientation

programme is offered to the farmers to equip them with the basic and the 13


fundamentals of cooperatives, accounting, testing, laws etc. A full –

fledged training centre is functioning at Trichur.

5. Co-operative Development Activities

The inherent togetherness brought about by being a part of

a society was seen as a potential platform for dissemination of related

information and discussion of various issues that crop up in the normal

village life style. Thus was born the idea of a Cooperative Development

Wing which held activities that saw the village as a whole and the Society

a nodal point, i.e. these activities went one step ahead by seeing the milk

suppliers not merely as a farmer member but went on to see them as a

part of the fabric of the village. The issue dealt with human health aspects,

nutrition aspects, and scientific management techniques of dairying and

such varied topic with the help of leading experts in the concerned where

discriminated. This is more of a socially motivating exercise than an image

building venture.

6. Embryo Transfer

In an effort to bring the results of research into the field

conditions, Embryo Transfer Technology has been introduced to upgrade

cattle wealth. ET was started in 1990 and so far, had a commendable 48%

success rate which is comparable to the national standards.

STUCTURE OF DAIRY CO-OPERATION IN KERALA

The organisation of dairy cooperation in Kerala state has a

three tier structure. The primary milk cooperation functions at the village

level, the regional milk producers union at the middle or district level. The

KCMMF or Milma act as the apex body at the state level. The motto of

cooperativisation is “of people, by the people, and for the people”.

14


At present there are three regional milk producer’s union,

which operates respectively at Thiruvanathapuram, Ernakulum and

Kozhikode.the primary cooperative society functioning at the districts of

Thiruvanathapuram, Kollam and Pathanamthitta are affiliated to the

Thiruvanathapuram Regional Milk Producers Union(TRCMPU). While

Milma takeover charge from the rest, it renamed as “Kerala Livestock

Development and Milma Marketing Board”

Anand pattern Cooperative Society (APCOS) was

registered on 30th September 1981 and there has been no looking back

ever since. Today there are 2350 APCOS through the states and the

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

year after year. The assurance of readily available market for the milk

collected from the doorstep 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.

15


COMPANY PROFILE

CATTLE FEED PLANT,PATTANAKKAD

Milma has two cattle feed plants, one each at Pattanakkad in Alappuzha

District and Malampuzha in Palakkadu District. The plant at Pattanakkad 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 Operational Flood 2 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 total production capacity of the plants is 600 MT per day,

i.e. 300 MT per day capacity plant at Pattanakkad and 300 MT pr day capacity

plant at Malampuzha.

The Milma Cattle Feed plant is under the Kerala Cooperative Milk

Marketing Federation,(KCMMF) which is otherwise called MILMA. Milk marketing

societies or dairy cooperative 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 agriculture holdings.

16


PRODUCT PROFILE OF MILMA

Milma has a range of products. A marketing chain consisting of nearly

4000 retail outlets, across the state ensures availability of Milma’s products to

consumers. Milma with its motto “Your health is our concern” has become

synonymous with assured quality of milk and milk products. Milma’s spectrums of

products adhere to the PFA rules and are released for distribution only after

stringent quality checks. Their products are;

Milk

Ice creams

Curd

Fat products

Beverages

Sweets

MILMA CATTLE FEED

Milma Gomati

Milma pellet

Milma gomitra

Milma bypass protein

Milma goverdhini mash

Milma high energy feed

MILMAMIN(vitamins minerals mixture)

GOMITHI

Due to customer recommendation MILMA have come out with pellet cattle feed

(Gomathi). MILMA have taken valuable measures to maintain good quality from the time

of purchasing raw material to firm that good and distribution.

Main features of Gomathi:

17


Since it has been made in high temperature.

Antibacterial

It is very tasty, cheap rate and will give high income to the farmer.

Fungus and insecticides will not harm.

There is no need to dilute in water. It can be feed directly.

18


ORGANIZATIONAL STRUCTURE

19


RESEARCH METHDOLOGY

Objectives of the study

The major objectives of the study are

To acquire knowledge regarding the profile of the company

To study overall working of milma cattle feeds

To know the functioning of various departments in milma cattle feeds

To understanding the organizational structure of milma cattle feeds

To know the sales promotional activities of the company

To conduct SWOT analysis of milma cattle feeds

To know precautions taken off season

Source of data

Primary data was collected through scheduled

interview( questionnaire method). Secondary data sources were

publications, journals, magazines, internet etc.

Duration of the study

Duration of the study is 15 days.

Research design

Research design is descriptive type.

20


Sampling Techniques

Convenience sampling technique is used for the study.

Sample unit

Sample unit selected for the collection of data is limited to the

employees in Milma Cattle Feed plant Ltd, Pattanakkad.

Sampling Area

The sampling area of this study is limited to the boundary of Milma

Cattle Feed plant Ltd, Pattanakkad.

Population

Population of the employee is 120

Sample size

Sample size is 20

Tools used for data collection

The tools used for primary data collection was questionnaire. The

secondary data was collected from various published sources like

journals, magazines, publications, internet etc.

Tools used for analysis

Tools used for analysis are tabulation, simple percentage analysis

and pie chart. The primary data collected from the 50 respondents are

analysed using simple percentage method. Then they are shown as pie

chart.

21


Simple percentage analysis

It is a simplest way of analysing the inter- related characteristics of

data. The data’s are converted in to percentage for easy analysis and for

drawing graphic diagram for quick and accurate comparison of collected

data.

LIMITATIONS OF THE STUDY

1. Since the sample size is small the result may not be generalized.

2. The time constraint was a major limiting factor.

3. The company officials could not be disclosed sun data that were

considered confidential.

4. Since MILMA is a government undertaken company, the welfare

and salary measures has its own statutory norms and conditions.

So it is difficult to change.

22


DEPARTMENTAL STUDY

There are various department in the organisation:

Personal Department

Production Department

Marketing Department

Purchase Department

Finance Department

Quality Control Department

Store Department

PERSONAL DEPARTMENT

This department deals with the managing and controlling of persons in an

organizations. The activities that comes under this department are :

Management

The management of the Pattanakad cattle feed done by the elected

members of the Thiruvananathapuram regional co-operative milk producers,

union (TRCMPU). The board takes all policy level decision and planning. The

board of directors of federation meet seven times during the last year. The

managing committee takes all major operational decisions like recommendation

of pricing strategies to meet the challenges in the market and lean flush

management.

23


Human Resources

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

‘personnel policies, trading of common service rules, finalisation long time

settlement, bonus etc. An ambiance of cordial industrial relation was maintained

during the reporting year. Inspite constrains at various levels, our efforts in

smooth industrial relationships yielded in rich dividend in enhancing the

productivity. Employee turn over was negligible during the year.

One of the major assets of this organization is its human resources. It has

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

goal of the organization. Pattanakad Milma cattle feed make continuous efforts

for the up gradation of the work force by deputing personnel for on the job

training as well as an orientation courses, seminars etc..

Recruitment

The recruitment policies of the employees are through employment

exchange. The main source of recruitment is thus followed by the Employment

Exchange Act 1959. But now it is carry forward to Public Service Commission.

The recruitment policies of the company are under two heads internal and

external. The age limit is 37 years and educational qualifications as per the

Government rules.

Qualification

Qualification required for appointing a person as a junior assistant is

graduation with PGDCA. For appointing personnel, marketing officer, and

accounts officer etc. Need MBA with specialisation in the respective field. The

accounts officer must be a chartered accountant.

24


Selection Procedure

The selection process is the next step to be followed by the recruitment

procedure. The selection step is the screening up of applicant from the

recruitment list.

Training Procedure

In order to equip the employees to work under different working

conditions, the company training program is essential. The company provide

NDDB training for the managerial staff. Mainly, the NDDB training is conducted at

Mezana in Gujarat. The company provides facilities for workers. It is also

conducted at Thrissur , Pattanakad, Allapuzha and Mallampuzha. They are

trained under productivity council.

Appointment

The employees are appointed through employment exchange. They are

appointed by conducting an interview with reference to employment exchange.

Permanent employees are appointed only through test and interview.

Promotion

Milma gives promotion in every five years and grade is being given in

every eight years, whose promotion is not possible.

Leave

All are getting casual leave for 12 days in one year. Employees have

communicative leave and one can earn leave for 11 days. In one year 33 leaves

are allowed.

25


Retirement

An employee is appointed at his age of 18 years and his retiring age is 58.

An employee will work for 37 years.

Trade Unions

There are mainly 4 trade unions in MCF. It includes INTUC, CITU, AITUC

and BMS.

PRODUCTIION DEPARTMENT

Any plant is organized and operated primarily with the objective of

producing goods. Processing is the conversion of raw material into finished

goods. The top management take all possible steps to see that the planning

department checks out all plants and properly achieved and set standards of the

product. In the Milma Cattle Feed Plant Pattanakad the assistant manager heads

the production department. Fixing of the production parameter managing the

production process is the responsibility of the production man in the firm here

there are three shifts. First shift starts from 8 am to 4pm. Second shift is from 4

pm to 12 midnight. And the third shift is from 12 midnight to 8 am. Each shift

contains 50 workers and the time in eludes interval to the workers.

26


STRUCTURE OF PRODUCTION DEPARTMENT

Assistant Manager

(Production maintenance)

Deputy Engineer

(Production Maintenance Technical Support)

Technician

Workers

PRODUCTS OF CATTLE FEED PLANT:

1. Pellets

2. Mash (Powder form)

3. Vitadin

4. Milmamin

PRODUCTION PROCESS

The firm follows a highly mechanised and systematic production process

using the most modern mechinery and supervising man power effectively. All

27


production process are controlled by computer controlled meachines. The

production process involves the following steps:

1. Supply of raw material

2. Dumping

3. Batching

4. Molasses mixing

5. Pellet feed production

6. Bagging

7. Handling

SUPPLY OF RAW MATERIAL

The raw materials are transported either through trucks or by railway

wagons. The loading unloads the raw material reached at the plant and

unloading workers weighed and then stocked seperatily in the raw material go

down.

DUMPING

The production process starts with the dumping of raw material to the

conveyor. There are several openings with grill at the different parts of the go

down. The raw material are dumped into the conveyor through grills. It is

automatically transported into the storing of different meterials. Only the raw

materials which is in powder form like DORD etc. is directly transferred into the

storage tins with other raw material like jower, maize, retc. Which are in granular

forms are initially transferred to hammer mills. The grained material is then

transferred into there respective storage tins.

28


BATCHING

From the storage tins raw materials came into the in take vitro screen for

purification. That is the unwanted particulars that accidentally came into the

powder form raw materials are taken away for ensuring the hugging of animals

which consumes cattle feed. Then the raw materials passes through the buffer

hopper and from the buffer hopper ,the same will pass to the batch mixer in the

required proportion.

MOLASSES MIXING

After mixing the batch mixer, the raw material will be transferred in to the

molasses mixed through elevators. While passing through the molasses mixer

the required quantity of molasses will be added to the product. Alter molasses

mixing the cattle feed in MASH from ready for bagging.

PELLET FEED PRODUCTION

Productions of cattle feed in the form of pellet get another process that is

pelting. For the purpose of converting mash into pellet, molasses mixture will

transferred into the pellet mill through feeder conditions. In the pellet mill, the

cattle feed in mash form under go different process. The first is steam mixing.

There are boilers for the production of steam. The steam produced in the boilers

guided to the pellet mill through pipes and mixed with the cattle feed in the pellet

mill. Then the feed will converted into the pellet form by the steam mixed cattle

feed through boles of required diameter.

BAGGING

There are mainly two bagging machines, which can be worked

simultaneously. The fnished product in the bagging bins get pass through the

opening of the bagging machines.

29


MARKETING DEPARTMENT

The MILMA Cattle Feedd Plant Pattanakad has a special department for

marketing their products. As it phases high competition from other sectors, about

20% of the cattle feeds are marketed through private dealers and other agencies

at the same time cattle feeds are distributing through APCOS (Anand Pattertn

Co-Operative socities).

Extremely good quality products are the trademark of Milma. Mainly its

help to boost the market demand for their products. Advertising campaigns also

helps to keep the product demand. Last year shown good improvement in

markrting of milma cattle feed. Milma can market the entire quality of feed

manufactured even during the period of recessions in the sector. It can be

achieve this because of high quality goods.

Milma products are marketing through the following medias:

1. Newspapers

2. Radios

3. Television

4. Posters

5. Cinema slides

30


Competitors

Milma faces a strong competition from the following competitors

1. Kerala feeds

2. Sunandini

3. Prima

4. Godreg

PURCHASE DEPARTMENT

Purchasing is the main function carried out by the purchase

department.The raw materials purchased for this unit are mainly from

outside states.The order for purchase is produced according to the

requirements from stores.Milma Bhavan,the Head Office of milma make

purchase orders to outside states for their two Cattle Feed plants-

Pattanakad and Malampuzha.The purchase section at the Pattanakad unit

makes orders for two or three materials.The Head office places orders for

three months.To take advantages of bulk transaction,the purchase dairy

consumables and cattle feed committees are centralised.The purchase

committee carries this out successfully.In these years Milma had

developed a loyal vendor base.This ensures regular supply of quality

materials at competitive prices.Milma could manage cost- of raw materials

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

completing the competitiveness of purchase.The purchase department

prepares purchase registration notesnand purchase orders.

The Major RAW Materials purchased are:

Weat Bran

Rice Polish

31


Cotton seed

Sunflower

Mustard Cake

Groundnut Cake

Copra Cake

Maize

Mineral Mixture

Molasses

Urea

Payment to the vendors is also done by the purchase

department.The freight and unloading charge are given by the department

and it is deducted from the payment to the vendor.

FINANCE DEPARTMENT

Finance is the life blood of every organization. The most important

factor, which is required by an organization to run efficiently, is finance.

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

point of all business activity. so it is called as the lifeblood of an

organization. The finance function of the management has an equal

importance in both profit and non profit organizations, no matter the

business is big or small, Government or not.

32


STRUCTURE OF FINANCE DEPARTMENT

Finance Manager

Asst.Finance Manager

Account Officer

Junior Superintent

Senior Asst.Steno

Junior Asst.

Office Attender

33


IMPORTANCE OF FINANCE

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

needs funds at every step, 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

profitable manner. Financial management helps in obtain funds at

minimum cost to tries to invest funds in various assets with a view to

maximize the return on share holder investments. More important is it tries

to generate sufficient profit finance expression and modernization of the

enterprise and secure stable growth. This management of finance is

essential for the source of a business.

SOURCE OF FINANCE

Milma Cattle Feed plant gets finance from Canara Bank,state Bank

of Travancore and Districtive CO-operative Bank(D C B Kuthiathode).The

senior manager of the firm signs all cheques.

PREPARATION OF ACCOUNTS

There are different types of accounting statements and accounts prepared

by this department. They are;

Trading and profit & Loss Account Balance sheet

Bank Re-conciliation statement

Preparation of Budget

Income Tax Assessment is done at the end of every financial year.

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AUDIT

Three type of audit is done in this firm:

1.Internal Audit (Every year)

2.Statutory Audit (This is compulsory according to the company act)

3.Tax:Audit (Audit of final accounts for the assessment)

FINANCIAL RESULTS

Stringent austerity measures and value engineering has enabled us to-cut

costs in various heads. The plant has able to contain and restrict the costs of

various fronts like employees cost,manufacturing expenses,administrative

cost etc...

QUALITY CONTROL DEPARTMENT

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 checking their quality. The lab has certain

parameters. Based on these they are categorizing the products.

The Milma Cattle Feed Plant Pattanakkad got an award from 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

50kg of Cattle Feed should contain on the basis of contents cattle feed can be

classified into two types they are

a) Type I b) Type II

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The contents of the two types should as in the following table:

Protein(min) Fat Fiber Sand

Silica (max)

Type I 22% 3% 8% 3%

Type II 20% 2.5% 1% 4%

The cattle feed plant mostly produces type II cattle feed. The quality

control department of the Pattanakad cattle feed plant is headed by an animal

nutrition officer. He is assisted by chemist and lab assistant in discharging his

function.

STORE DEPARTMENT

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.

As a consignment of raw material arrived before weight, the samples from

each truck will be taken for analysis in the lab. After the result, the load may

be accepted or rejected. After that the accepted track can be weighed. The

senior assistant (weigh bridge) scrutinises the parties in voice and enters the

details in the computer. Actual weighment will be taken and the

acknowledged quantity will be recorded in the computer. Immediately

weighment slip will be prepared in triplicate. One will be issued to the supplier

through the driver, one will be forwarded to the cashier for the payment of

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

chief function of the store department are explained below:

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

2. Keep the stock safely and record the quantity.

3. Provide the stock as and when require by the production unit.

4. Inform the purchase department in case of stock deficiency.

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SWOT ANALYSIS

Strengths

1. The premier organisation in kerala produce a variety of high quality cattle

feed.

2. Efficient and qualified managers

3. Experienced and well trained work force

4. Cordial industrial relations

5. Well established hierachial positions

6. Fully updated management information system

7. Centralisation of authority.

Weakness

1. Time delay in availability of funds

2. Centralized decision making

3. Inproper planning

4. Inefficient advertisement

5. Poor attitude of workers towards training programme

6. The company is unable to meet the demand

Opportunity

1. Kerala, known as the god’s own country is also known as the land of

coconuts thus the abundance of coconut cakes gives the organisation an

opportunity to use those cakes for the manufacture of cattle feed at a

cheaper cost

2. 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

organisation is a premier in the sector it has unlimited opportunity

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Threat

1. Molasses 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 Govt of Kerala the procurement

process is time lagging leading to a delay in the required leval of molasses

2. Procurement of raw material from other states creates addition the total

cost (inclusion of transportation cost and freight charges). These costs are

excluded from the total cost by the cattle feed manufacturing units the

states from where milma is producing its raw material. An increase in

total cost would lead to a increase in the selling prices and a reduction

the profit margin thus causing a threat.

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FINDINGS AND SUGGESTIONS

Findings

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 centralised at the head office.

The company doesn’t have any exporting programme.

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

The firm is maintaining its high goodwill and reputation.

Best quality is unique selling proportion of their products.

The company distributes their production 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 is the market leader but now

they are in second position.

The plant offers high cattle feed with preferable appreciation

compared to its competitors

They are providing good quality products to the consumers and

consumer preference is high for milma cattle feeds.

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SUGGESTIONS

Sales promotion activities should be widened.

Advertisements campaign should be more powerful.

Make provision to further increase the average production.

Make provision for selling the products in to 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 new

touch.

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

right person.

Make stronger control over loading and unloading worker who often create

problems.

The company should take necessary step for the improvement of

recreation facilities

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CONCLUSION

The study conducted at MILMA ,cattle feeds plant Pattanakad for

the preparation of this project report immensely helped to understand the

practical significances of the theories in an organisation. It has provided

an opportunity to have an insight in the working of this undertaking. The

study, o n the whole has revealed that the plant setup under the co-

operative sector developing progressively and so it has a bright future.

Now we can understand that the federation successfully achieved their

objective to build up a viable dairy industry in the state.

The findings of the study emphasis and justifies the co-existence of

public sector and private sector undertaking in our national economy and

“the views of our national leaders. The planners and the policy makers of

the modern India should recognize the fact that it is unnecessary and

unwanted to sell the shares of public sector undertakings, which are

managed efficiently and render social service to the society”.

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BIBILIOGRAPHY

ASWATAPPA K., HUMAN RESORCE AND PERSONAL

MANAGMENT, NEW DELHI, TATA Mc-Graw – HILL PUBLISHING

COMPANY, 2002.

PRASAD L.M., HUMAN RESORCE MANAGEMENT, NEW DELHI,

SULTAN CHAND AND SONS EDUCATIONAL

PUBLISHERS,2001.

C.K. KOTHARI, RESEARCH METHODOLOGY, WILEY EASTERN

LIMITED, NEW DELHI.

WEBSITES

www.milma.org

www.indianindustries.com

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