MBA -Project Study Report

Project Study Report on
Strategic Intent of Milma
With special reference to
Thiruvananthapuram Dairy
(A Division of Thiruvananthapuram Regional
Co-operative Milk Producers’ Union Ltd)
Project Study report submitted in partial fulfillment of requirement
for the award of degree of
Master of Business Administration of Kerala University
Submitted by
Alexander T C
Register No. 401
Under the Guidance of
Faculty Guide Project Guide
Institute of Management in Kerala,
University of Kerala,
Kariyavattom
Thiruvananthapuram-6950581
Kerala State
PH: 0471-2301145, 2301513 Ext: 286/296
Email: contact@imk.ac.in
1. Dr. J. Rajan. M.Com .PhD,
Director & Faculty –Strategic Management
IMK- University of Kerala
2. Dr. Rajan Nair, M.Com, PhD,
Faculty- Marketing Management
IMK- University of Kerala
Mr. G. Rajesh,
Manager- Marketing
TRCMPU Ltd.

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Project Report _Alexander_T_C_ _MBA_ E_ Batch_2010-2012_IMK_UoK_
I. Project Title
Project Study Report on
Strategic Intent of Milma
With special reference to
- A Division of TRCMPU Ltd.
(Thiruvananthapuram Regional
Co-operative Milk Producers’ Union Ltd )

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II. Declaration
I declare that the Organization Study report entitled “Strategic
Intent of Milma With special reference to Thiruvananthapuram
Dairy ” submitted by me for the award of degree of Master of
Business Administration of the University of Kerala is my own work.
The report has not been submitted for the award of any other degree of
this university or any other university.
Alexander T C
Register No.3001
(Name & Signature of Student)
Place: Thiruvananthapuram
Dated: 14th
December 2012

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III. Certificate of the Organization
THIRUVANANTHAPURAM DAIRY
(ISO 9001:2008 Certified)
Post Box No.4 Ambalathara, Poonthura P O, Thiruvananthapuram 695026
Telephone: +91-471-2381410, 2382562, 2381228, 2384148, 2382982
Email: milmatd@gmail.com
No.TD/PER/36/92/Vol.13/3268 05.12.2012
CERTIFICATE
This is to certify that Mr Alexander T C , MBA student of Institute of
Management in Kerala University of Kerala, Tvm has successfully completed the
project work titled “Strategic Intent of Milma With special reference to
Thiruvananthapuram Dairy ” for 45 days starting from 17.09.2012 to 31.10.2012
as per of his MBA curriculum.
We wish him all success for future endeavors
SD/-
Manager (HRD)

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IV. Certificate of the Institution
This is to certify that the Project Study report titled
“Strategic Intent of Milma With special reference to
Thiruvananthapuram Dairy ” submitted here is a bonafide record of
the work done by Mr Alexander T C (Register No 401), under my
guidance in partial fulfillment of the requirement for the award of the
Degree in Master of Business Administration of the University of
Kerala and this work has not been submitted by him for the award of any
other degree or title of recognition earlier
Director Faculty Guide
Dr Rajan Nair

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V. Acknowledgement
Here I acknowledge my sincere appreciation to all those who
stood by me to make this study report a success. I must acknowledge
special thanks to the management, especially to Sri. Baby Joseph,
Managing Director, TRCMPU Ltd, Mr B S Jyothi, General Manager
(I/C), Mr. G. Rajesh , Manager – Marketing , Mr K Polachan ,
Manager –HR and all the other Section Heads and staff Members of
Thiruvananthapuram Dairy for their whole hearted support and
contributions to make this report meaningful and relevant.
I am much thankful to Dr. J Rajan, Director-IMK, faculty
members and staff of IMK for their support and guidance throughout
the programme. Also special salutes to my faculty guide Dr. Rajan Nair
for his valuable reviews and suggestions that made this report
presentable.
Finally a word acknowledging my whole hearted thanks to
my wife Beena and our kids Emy and Ann for their constant support
throughout the last two years to help me complete my MBA
programme and complete the project work.

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VI. Contents
Sq.# Page Description Page #
I. Title Page 2
II. Declaration 3
III. Certificate of the Organization 4
IV. Certificate of the Institution 5
V. Acknowledgement 6
VI. Contents 7
VII. List of Tables & Charts 8
VIII. Executive Summary 13
IX. Chapter 1. Introduction 18
IX.01 Statement of the Problem 22
IX.02 Review Literature 23
IX.03 Objectives 25
IX.04 Research Design 26
1X.04.01 Type Of Research Design 28
1X.04.02 Date Collection From Secondary Sources 29
1X.04.03 Date Collection From Primary Sources 30
1X.04.04 Sampling Techniques 31
1X.04.05 Scaling Techniques 33
1X.04.06 Data Analysis Tools & Techniques 36
IX.05 Scope of the Study 43
IX.06 Limitations 44
IX.07 Chapterisation 45
X. Chapter 2. Industry Profile 46
XI. Chapter 3. Company Profile 56
XI.01 Name, Location & Address 57
XI.02 History 58
XI.03 Management 59
XI.04 Strategic Intent 60
XI.05 Products 61
XI.06 Organizational Structure 62
XII. Chapter 4. Data Analysis Interpretation 74
XII.01XII.01 Part–1 Data Analysis &Interpretation – Customers’ 75
XII.02 Part–2 Data Analysis & Interpretation – Farmers’ 112
XIII. Chapter 5 ETOP ,OCP & SAP Analysis 156
XIV. Chapter 6. Findings , Conclusions & Suggestions 160
XV. Findings 160
XVI. Conclusions 171
XVII. Suggestions 173
XVIII. Bibliography 175
XIX. Appendix 176

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VII. List of Tables & Charts
VII.1 List of Tables
Table
#
Title of Tables Page. #.
1 List of Research variables 27
2 Population size – Farmer Respondents 31
3 Population size – Customer respondents 32
4 Likert’s Scale Illustration 34
5 Suggested Data Analysis Procedures for Likert-Type and Likert Scale Data 36
6 Statistics on– Production Cost, Yield, Cost Factor Ratio & Procurement Rate 55
7 Structure of Board of Directors 59
8 Milma Product Mix: Marketed by Thiruvananthapuram dairy 59
9 Quality Standards Of Out Going Milk 68
10 Milma Products:- 70
11 Customer - Population Data Source – National Population Senses -2011 76
12 Respondent -Age Group 76
13 Respondent – Occupation 76
14 Respondent – Age Segment 77
15 Respondent – Customer family Size 77
16 Respondent – Average family Size 77
17 Respondent - Average user Segment Spread 77
18 Geographical Gender Spread of Respondent -Customers 78
19 Milk Usage 79
20 Milk usage Type wise 79
21 Milk Consumption Pattern – Source wise 80
22 Milk usages _ Milma vs Others 80
23 Geographical Spread Milma Milk Share 81
24 Milk market share Milma vs Others Urban Mix 82
25 Milk market share Milma vs Others Rural Mix 83
26 Meeting of Demand d of milk – Source Wise 85
27 Quality of milk – sum score tabulation 86
28 Quality of Milk – Percentage Analysis 87
29 Quality of Milk – Urban Vs Mean Score Value 88
30 Quality of Milk – Urban Vs Rural - Analysis 88
31 Quality of Milk – Urban Vs Rural –User & Non User Analysis 89
32 Quality of Milk –User & Non User Analysis 89

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33 Quality of Milk - Chi Square test for Association –Observed value Table 90
34 Quality of Milk - Chi Square test for Association –Expected value Table 90
35 Price of Milk – Percentage Analysis and Mean score value 91
36 Price of Milk - Chi Square test - Users vs Non Users - Observed value Table 92
37 Price of Milk - Chi Square test - Users Vs Non users –Expected value Table 92
38 Price of Milk - Chi Square test Users Vs Non Users –Value Tabulation 92
39 Price of Milk – Urban Vs Rural - Analysis 93
40 Price of Milk - Chi Square test - Urban vs Rural - Observed value Table 94
41 Price of Milk - Chi Square test - Urban vs Rural –Expected value Table 94
42 Price of Milk - Chi Square test - Urban vs Rural –Value Tabulation 95
43 Price of Milk - Acceptance – Overall rating 96
44 Brand Loyalty - Urban Vs Rural User –Non user Analysis 96
45 Brand Loyalty - Urban Vs Rural User – Non User Percentage & Mean Score 98
46 Market Access – Urban Vs Rural Analysis 99
47 Market Access - Urban Vs Rural User –Non User –Percentage & Mean Score 101
48 Market Access - User – Non user - Mean Score Value 101
49 Market Access – Urban Vs Rural - User Non user - Analysis 102
50 Market awareness – Percentage Score 102
51 Market awareness – Mean Score value 103
52 Market Awareness – Urban vs Rural Analysis 104
53 Market Awareness – user Vs Non User - Analysis 105
54 Value Expectation – Urban Vs Rural Analysis 105
55 Value Expectation – Urban Vs Rural User – Non User Analysis 106
56 Value Expectation – Percentage & Mean Score Value 107
57 Value Expectation Urban Vs Rural Divide Analysis 108
58 Overall Rating by Customer -Level of Satisfaction - Users 108
59 Overall Rating by Customer -Level of Satisfaction - Non Users 109
60 Overall Rating by Customer -User Non user Percentage & Mean Score Value 110
61 Farmers Survey Sample - Statistics 113
62 Farming Pattern In terms of No of Animals Owned 114
63 Strength of farmers - based on No of Animals Owned 114
64 Daily Per Animal production Level 115
65 Milk Yield Per Animal 115
66 Age Distribution Of farmers 116
67 Age & experience of farmers 117
68 Farming Potential _ Survey Score 117
69 Statistics on Milk production –Consumption & Procurement 118
70 Hypothetical Case -1 : Analysis on Milk Pouring Strategy & Profit Margin 121

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74 Hypothetical Case Analysis – Summary Table 125
75 Acceptance of Milma Management - Percentage & Mean Score Value 127
76 Public relation & Communication - Percentage & Mean Score Value 128
77 Acceptance of Organization - Percentage & Mean Score Value 129
78 Dairy Farming Prospectus & Dependency - Percentage & Mean Score Value 130
79 Milk production Enhancement Programme - Percentage & Mean Score Value 131
80 Farmers’ reliance on Milma - Percentage & Mean Score Value 132
81 Hypothetical Case Analysis – Summary Table 133
82 Remunerative price - Percentage & Mean Score Value 134
83 Role pf Primary APCOS - Analysis - Percentage & Mean Score Value 135
84 Overall rating Acceptance rating on Performance of Milma 136
85 Survey Score – Farmers’ Acceptance rating of Milma 137
86 Reasons for Mixed Poring strategy - Mean Score value 138
87 Reasons for Mixed Poring strategy – percentage Analysis Value 139
88 Reasons for Mixed Poring strategy – Reasons Wise % Score 139
89 MPEP’s – Usefulness - Scheme Wise Acceptance Score 141
90 MPEP – production Incentive - % Score & Mean Score Value 142
91 MPEP – Cattle feed Fodder Supply - % Score & Mean Score Value 143
92 MPEP – Veterinary Service - % Score & Mean Score Value 144
93 MPEP – Calf Adoption - % Score & Mean Score Value 145
94 MPEP – Free cattle Insurance & Feed - % Score & Mean Score Value 146
95 MPEP – Artificial Insemination - % Score & Mean Score Value 147
96 MPEP Cattle Fodder Cultivation - % Score & Mean Score Value 148
97 MPEP – Merit Scholarship & Awards - % Score & Mean Score Value 149
98 MPEP – Gosureksha & Gosamwarthini Campaign - % Score & Mean Score 150
99 MPEP – Personal Accident Insurance - % Score & Mean Score Value 151
100 MPEP Interest Free Loan Using Revolving Fund - % Score & Mean Score Value 152
101 MPEP – Cattle Insurance - % Score & Mean Score Value 153
102 Overall Rating of MPEP’s 154
103 Farmers’ Survey MPEP item Wise % Score & Mean Score – Malayalam 155
104 Farmers’ Survey MPEP item Wise % Score & Mean Score - English 155
105 ETOP – Environmental Threats & Opportunity Profile 157
106 OCP – Organizational Capability Profile 158
107 SAP - Strategic Advantage Profile 158

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VII.2 List of Figures
Chart # Title Of Charts & Figures Page. No.
1 Milma –Organizational Structure 20
2 Global Factory Milk Use Product Wise-2010 48
3 Global Cow Numbers And Productivity 49
4 Global Milk Production 49
5 Per Capita Grams Per Day Availability Of Milk 50
6 Indian Dairy Industry- Raw Milk Consumption Vs Product Conversion 51
7 Milk Production In 1000 Mt Up to Feb 29, 2012 54
8 Organizational Structure TVM Dairy 62
9 Process Cycle -Milk 67
10 Process Cycle -Sambaram 67
11 Process Cycle -Ghee 67
12 Organizational Structure Maintenance Department 71
13 Organizational Structure Stores Department 72
14 Milk Consumption Rate 78
15 Milk Usage 79
16 Milma Milk Usage 80
17 Market Share Of Milma Vs Others 81
18 Urban Market Share Distribution 82
19 Rural Market Share Distribution 83
20 Urban Rural Mix- Urban Market 84
21 Urban Rural Mix- Rural Market 84
22 Factors Affecting Quality- Mean Score 87
23 Quality Acceptance-User Vs Non-User Divide 90
24 Agreement On Milma Milk Price-User Vs Non-User Divide 93
25 Price Acceptance-Urban Vs Rural Divide 95
26 Extent Of Brand Loyalty Of Milma -Users 97
27 Extent Of Brand Loyalty Of Milma-Non-Users 97
28 Market Access of Milma Milk 99
29 Market Access of milma milk – Urban & Rural Divide 100
30 Market Awareness Urban Rural Divide 103
31 Market Awareness Level among User & Non user 104
32 Urban Rural user expectation Level on Value Addition 106
33 User Non User expectation Level on Value Addition 107

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34 Customer Function over all Mean Score 109
35 Overall Customer Function rating 110
36 Overall Customer Function Rating – Urban & Rural User Divide 111
37 Overall Customer Function Rating – Non User Urban & Rural Divide 111
38 Overall Customer Function Rating – User Non User Divide 111
39 Milk Flow - Per Day Per Animal 119
40 Acceptance of Milma Management 127
41 Public Relation and Communication 129
42 Acceptance of the Organization 129
43 Dairy farming Prospects 130
44 Milk Production Enhancement 131
45 Farmers reliance on Milma 132
46 Remunerative Price 134
47 Role of Primary Apcos 135
48 Overall Rating of Performance 136
49 Major reasons for Milk Diversion 139
50 Production Incentive - % Score 142
51 Cattle feed & Fodder Supply - 143
52 Veterinary service 144
53 Calf Adoption 145
54 Free Insurance & Feed 146
55 Artificial Insemination 147
56 Cattle Fodder Cultivation 148
57 Merit Scholarship & Awards 149
58 Gosureksha & Gosamwarthani Campaign 150
59 Personal Accident Insurance 151
60 Interest Free Loan Using Revolving Fund 152
61 Cattle Insurance 153
62 Overall MPEP Rating 154

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VIII. Executive Summary
A 45 day long Project study is carried out in Part fulfillment of the
two years MBA Programme offered by Institute of Management In Kerala, University
Of Kerala. The management subject area selected for this study is Strategic
Management. The broad problem area identified is the Strategic Intent of Milma that
vouches socio-economic end benefits to member farmers. To this end milma has set the
objective of “Farmer’s Prosperity through Customer Satisfaction”.
With in the identified broad problem area, this study attempts to find
an answer to question, whether milma could strike a balance between its twin objectives
of providing remunerative price to farmers by supply of competitively priced good
quality milk & milk products to its potential customers?
The term milma is the brand name owned by Kerala state
cooperative Milk Marketing Federation Ltd, which is an apex to the 3 Regional Milk
Producers Unions in Kerala. Thiruvananthapuram dairy is one of the Business Unit and
this study is limited within the operational area of Thiruvananthapuram dairy.
70 % of the milk production and consumption happens within an
unorganized sector and only 30% is in the organized sector. Therefore this study has a
major constrain of being conducted within the organized sector. Analysis of data shows a
huge gap between milk demand and supply as explained below. The estimated demand
in the district of Thiruvananthapuram is 10.91 Lakhs Liters. Milma processes average 2
Lakhs Litters a day. i.e 18 % of the demand. Total Market share of milma is 51 % on an
average in both urban & rural areas. That takes total Demand jointly met by milma and
others to 35%. The remaining 65 % of the milk is not covered in this study.
Based on the above stated objectives this study has analyzed and
matched the level of satisfaction of the farmers and customers and thereby asses the
efficiency of milma in balancing their interests. Units of Analysis are the Member Dairy
Farmers. The satisfaction level of Customers is put to test in terms of the various

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aspects of its customer’s functions namely Quality, Price Market Awareness., And Brand
Loyalty, and Product Access & Value Expectation.
Similarly the level of satisfaction of farmers is put in to test by
mean of their Acceptance of Management of Milma. Public Relations & Communication,
Acceptance of the Organization, Dairy Farming Dependency as Livelihood, Political
Involvement, Milk Production Enhancement Programme, Reliance On Milma For
Marketing Produces, Remunerative Price, Role Of Primary APCOS.
This research is done in an Exploratory Research Method as
there are no known or published earlier studies on the area of strategic intent of milma.
Being an exploratory research, much importance is given to primary sources for
collection of data. The data collection is done mainly by way of structured questionnaires
survey this study being an exploratory one in nature, relay basically on descriptive
statistics to measure the level of satisfaction or agreement of the respondent to a given
statement. Therefore an ordinal scaling technique is opted and specifically Likert’s Five
Point Scale is selected. The responses obtained are analyzed for their percentage of
Strong or mere agreement or disagreement or neutrality to a given statement. The % score
is corroborated with a mean Score value. Where ever required a test of association is
done using Chi Square Test.
The survey results shows that milma milk is enjoying s comfortable 70 %
market share in the urban area and 30 % in Rural. This amount to a total market share of
51 %. Quality of milma milk is found satisfactory. Milma need to improve a lot to fulfill
its stated objectives on customer functions. Milma has to take the leverage of its
competitive advantage of image of Govt Backed Co-operative label and a strong Brand
Loyalty.
Milma customers are quality conscious rather than price sensitive. 50
% of the users are favoring value addition and willing to pay a premium for value.
Therefore milma has to offer product differentiation by maintaining a balance between its

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price and costs. On an emergent strategic perspective milma has to adopt a differentiation
strategy to earn better returns to help farmers with remunerative price for their produce.
On the other side, milma is a failure in terms of protecting the interest of the
farmers. Of the total available marketable surplus of milk production, milma could
procure only 45 % of the milk production of its member farmers. The major constrain
that prevent the farmers pour their entire marketable surplus to milma is the milk value
factor.
Farmers are following a mixed pouring strategy that helps them cover the
loss to some extent. A hypothetical case analysis shows that a farmer who pours his entire
marketable surplus to milma at the prevailing rate will end up in a loss of Rs. 6.75 per
liter. By diverting 25 % of the milk, he could bring down the loss to Rs. 3.18 per Litre.
If milma could pay an expected price of Rs35/- a liter, farmer could gain Rs.1.09. A
farmer who obtain the expected price of Rs 35/- per Liter, if continue a mixed pouring
strategy could gain up to Rs.3.31 per liter.
Majority of the farmers are highly dissatisfied on the Input assistance
provided by milma. The major area of their concern is availability of cattle feed and its
souring price. Out of the 12 Milk production Enhancement programmes (MPEP), tested
for satisfaction level, all except for Production Incentive Scheme, failed utterly.
Therefore its time milma think wisely to revamp its MPEP’s.
Another area of concern is the depletion of farming community. The
majority of the farmers are in their 50’s and above. With an average life expectancy of 60
Years in Kerala, this lot of farmers will be extinct within 10 years time. So its high time
milma has to have the wisdom and vision to equip itself either to help develop a new
generation of farmers, especially rural women or go for back ward integration.

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This study concludes that its time milma has to do a strategic analysis
of its business level strategies and see possibilities to adopt an emergent strategic
approach. Strategy Management is a continuous process. Except for the core
vision or intent, strategies in the business level and operational level are to be
constantly reviewed to have a strategic fit and be aligned with the vision of the
organization.
Being a parallel to both capitalist and socialist form of economy, Co-
operatives are a viable solution to the evils of both. Therefore keeping in line
with the co-operative principles, milma can reformulate its business level and
operational level strategies to help farmers prosper while keeping the customer
lot satisfied with better customer functions and alternative technology.

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Chapter 1
IX.00 Introduction
IX.01 Statement of the Problem
IX.02 Review Literature
IX.03 Objectives
IX.04 Research Design
1X.04.01 Type Of Research Design
1X.04.02 Date Collection from Secondary Sources
1X.04.03 Date Collection from Primary Sources
1X.04.04 Sampling Techniques
1X.04.05 Scaling Techniques
1X.04.06 Data Analysis Tools & Techniques
IX.05 Scope of the Study
IX.06 Limitations
IX.07 Chapterisation

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1X.00 Introduction
“Living Is Purposeful Existence”. Purpose has to be value based.
Existence of a living entity becomes fruitful only when it succeeds in achieving the
purpose it strives for. Success can’t be an accident or a spontaneous happening. Only
deliberate action will make things happen to be successful. Acting is responding to
changes in the environment. Response has to be proactive rather than reactive. In
order to be proactive one has to communicate with the environment continuously.
Success gives growth. Growth means enhancement of capabilities in terms of
resources. Growth becomes meaningful when the enhanced capabilities help Create
and delivers value to the stake holders and to the environment as a whole. Therefore
the ultimate test of meaningful existence is the enhanced capability of an entity to
create and deliver value to its stake holders. This holds true for individuals as well as
organizations including business organizations.
The purpose that an organization or an individual strives for is called its
Strategic Intent. The strategic Intent of a firm can be expressed in a hierarchical way
at each of its organizational level. In the corporate level the strategic Intent could be
expressed as a whole in the form of Vision and Mission Statement of the
Organization. In the business level, i.e. in Strategic Business Unit Level, this could be
expressed as the Business Definition and Business Model.
Vision: - “A well conceived vision consists of two major components; Core
Ideology & Envisioned Future “(Collins & Porras 1996). The core ideology has to remain
consistent despite the changes in environmental vectors like technology, competition
or management fads. The core ideology has to rest on the core values and core
purpose of the organization. The envisioned future also has two components namely a
Long Term Audacious Goal and a vivid description of what it looks like when that
goal is achieved.

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Mission: - When vision is a view of what an organization wish to be, mission is
what an organization is and why it exists. Mission is the tasks or steps undertaken to
achieve the vision. The mission of an organization answers three fundamental
philosophical business related questions; “what is our business?” , “What will it
be?” & “What it should be?”(Peter F Drucker). The mission of an organization is
therefore defined as “purpose or reason for organization’s existence” (Hunger & Wheelen
1999). The Mission Statement has to enlighten the insiders and outsiders about what the
organization stands for.
Business Definition: - In the business unit level the Strategic Intent of an
organization can be expressed in terms of the business definition. A business can be
defined in three dimensions namely Customer Group, Customer Functions and
Alternative Technology (Derek Abell). A clear business definition helps indicate the
choice of objectives, help choose the best strategic Alternatives, facilitate functional
policy implementation and suggest appropriate organizational Structure. Customer
Groups are the segments of customers which is one of the most important aspects of
defining the business. Customer Functions are the utility and value associated with the
products and services. Alternative Technology is the technology that helps creating
value bearing goods and services.
Business Model: - This is the representation of the core logic and strategic choices
of a firm that create and capture value within a value network. A business model is the
real life application of business strategies of an organization and they prescribe how to
implement the strategies and register growth in terms of money value.
This research study on the strategic Intent of milma is to analyze and
review the vision of “Farmers Prosperity through Customer Satisfaction” giving
special emphasis to the business definition of Thiruvananthapuram dairy, one of the
Strategic Business Unit (SBU) of Thiruvananthapuram Regional Co-operative Milk
producers Union Limited (TRCMPU Ltd) This study measure the operational
efficiency of Thiruvananthapuram Dairy in providing remunerative price to farmers
by way of providing good quality milk to customers at competitive price.
“Milma”, as it is popularly known by the brand name itself, is a 3- tier
Dairy Industry organizational set up in Co-Operative Sector (Figure 01). This 3-tier

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system consists of an Apex Body having three affiliated Regional Producers’ Unions,
comprised of primary level Anand Patten Co-Operative Societies having dairy
farmer-members.
Figure 1
As per clause 3.0 (3.1) of the bye law of TRCMPU Ltd, i.e at the corporate
level, the prime objective, shall be “to carry out activities conducive to the socio
economic development of the milk producers by effectively organizing production,
processing and marketing of commodities as per the direction of the Federation”.
The Kerala Sate Co-Operative Milk Marketing Federation Ltd
(KCMMF Ltd), the apex body of producers’ union, set its fundamental prime
objectives as “to carry out activities for promoting production, procurement,
processing and marketing of milk and milk products for economic development of
the farming community”. Also it aim allied activities conducive for the promotion of
dairy industry, promotion and protection of milch animals and economic betterment of
those engaged in milk production without prejudicing the prime objective.
As per its stated motto, milma is committed to achieve “Farmers Prosperity
through Consumer Satisfaction”. Therefore the prime intent of Milma can be

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concluded as is to strive for the socio- economic benefits of the dairy farmers in Kerala.
To this end milma must be able to support the farmers with effective Milk Production
Enhancement Programmes (MPEP’s) and should obtain better remunerative price for the
producers of its member – farmers. This is possible only if milma could add value to the
procured milk and provide good quality milk and milk products to potential customers at
competitive price.
It is in this context, this study is initiated and a problem area of the strategic
Intent of Milma is identified and attempts to find an answer to question, whether milma
could strike a balance between its twin objectives of providing remunerative price to
farmers by supply of competitively priced good quality milk & milk products to its
potential customers?

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1X.01 Statement of the Problem
Milma is a Co-operative form of business organization.
Being a Co-operative form of entity, the shareholding Member Farmers are the major
beneficiaries and prime intent of milma as stipulated in its by- law is the socio-economic
uplift of this group. This legally stipulated corporate intent of milma could be achieved
only by of serving the customer group with value bearing customer functions.
The above objective of milma is very well stated in the business slogan
“Farmers Prosperity through Consumer Satisfaction”. This stated business slogan
imposes a dual responsibility on milma. On one end it is obliged to procure the produce
of farmers and provide remunerative price and on the other end is has to profitably
market quality milk and value added milk products to its customers at competitive price.
It is in this context, the specific problem of this study is identified.
The specific problem identified is the “Conflict Of
Interests Of Stake Holding Member Farmers And Customers And
The Ability Of Milma To Strike A Balance Between The Two” and the
back drop of identifying this problem is as stated below.

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1X.02 Literature Review
This part of my report presents a summary of the literature search done on the
published data in relation to my research area of Strategic Management covering strategic
Intent of milma and the question of balancing the interests of stake holders and customers
in line with the stated intent of the organization.
Literature Review is nothing but an interpretation and synthesis of published
data. It has to be involved of locating, reading and evaluating published materials
including casual observations and opinions related to the research area.
As per a previous study, conducted by a team of dairy and livestock experts
headed by Dr. Unnithan, former Managing Director of Kerala Livestock Development
Board Ltd., the Dairy farmers in Kerala are the highest paid when comparing to the other
states in India. But even then the price level is not sufficient enough to set off the
mismatch between the production cost and the procurement price. But taking the
procurement price beyond that of the neighboring states is not in the best interests of the
producer or the consumer.
With regard to the market price of milk sold by milma, the report
states that the customers in Kerala are found paying no more than what their counter parts
in the neighboring states pay. The report categorically recommends that Milma, being is a
collective enterprise of resource-poor milk producers, should have all the rights to decide
the price of what they produce and survive in a free and competing market economy.
In contradiction to the above recommendation for freedom of pricing
policy, study further suggests that the government has to allow moderate incentives to
the dairy sector to function in a free-market economy, avoiding all forms of government
price control and monopoly.

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The above previous study caution than increase in prices, which is
inevitable to sustain local production, needs to be carefully balanced with production
incentives from the government, as provided by many States and countries.
The same study report put forward a Procurement pricing policy linked to the
consumer price index (CPI) for a hassle-free and scientific price adjustment. Accordingly
the report suggests an Index-based pricing, based on four aspects:
a. Feeding Cost,
b. Wage Rates,
c. Bank Rate Of Interest
d. CPI
The measures mooted by the panel include subsidizing cattle feed,
supply of straw of paddy and wheat and promotion of fodder cultivation. The report says
the cost of milk production during summer is more than that in the rainy season, calling
for a differential pricing of milk and providing special packages and services for summer
management of dairy cattle. The committee suggests that promotion of medium-sized
dairy farms of 10 or more cows and empowering them to take up dairying as a profession
should find priority in the development plans of the government and Milma.
A comparison of the operating margins between the procurement and
the consumer prices shows that the margin received by Milma is one of the lowest of
those received by such agencies in the country.

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1X.03 Objectives
1. Examine the operational efficiency of milma in providing
remunerative price to its member farmers for their milk
produces.
competitively priced good quality milk to potential customers.

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1X.04 Research Design
This research study is titled Strategic Intent of Milma – with
Special Reference to Thiruvananthapuram Dairy.
` The subject area of this study is Strategic Management. The
problem area indentified is the Strategic Intent Of Milma in the Emergent Environment
with special reference to the Business Definition of Thiruvananthapuram Dairy, a
Strategic Business Unit (SBU) of the Thiruvananthapuram Regional Co-operative Milk
producers’ Union Ltd.
The specific problem identified is the “Conflict of Interests of Stake Holding
Member Farmers and Customers and the Ability of Milma to Strike a Balance between
the Two”. To this end this study aims to look in to a specific question of efficiency of
milma to strike a balance between the Customer Group and Stake Holding Member
Farmers.
Based on the above, this study has decided on two major objectives as
stated below.
remunerative price to its member farmers for their milk
produces.
competitively priced good quality milk to potential customers.
 Unit of Analysis
Based on the above objectives this study is to analyze and match the level of
satisfaction of the farmers and customers and thereby asses the efficiency of milma in
balancing their interests. Therefore the Units of Analysis are the Member Dairy
Farmers and the Milma Customers

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 Variables
The study of level of satisfaction of farmers and customer is based on the
following variables which are identified relevant to the problem. These variables are
proposed to be studied by way of questionnaire survey based on Likert’s Scale method.
List of variables identified relevant to the problem are as shown in Table (1)
Table 1 Variables Brought Under Study
Research Variables Related To
Farmers
Research Variables Related To
Customers
1. Acceptance Of Management Of
Milma
1. Quality Of Milk
2. Public Relations &
Communication
2. Price Of Milk
3. Acceptance Of The Organization
3. Market Awareness On Milma
Products
4. Dairy Farming Dependency As
Livelihood
4. Brand Loyalty To Milma Products
5. Political Involvement 5. Product Access
6. Milk Production Enhancement
Programme
6. Value Expectation
7. Reliance On Milma For
Marketing Produces
8. Remunerative Price
9. Role Of Primary APCOS

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1X.04.01 Type Of Research Design
The topic of this research comes under Strategic Management and the
problem area identified is the Strategic Intent of Milma.
This research is done in an Exploratory Research Method as there
are no known or published earlier studies on the area of strategic intent of milma. Hence
no hypothesis or preposition is possible on the problem area. Therefore this study aims to
look in to patterns and ideas or prepositions rather than a hypothesis which can be tested
and proved true or false to be accepted or rejected.
 Research Process
The research approach adopted in this study has the following stages
1. Decide on strategic management as research subject
2. Identification of problem area of strategic intent on milma at corporate level
3. Located a specific problem in businesses Definition of Thiruvananthapuram dairy
4. Decided on exploratory research as no previous study could be traced
5. Identified two specific objectives ;one related to farmers and other on customers
6. Identified nine relevant variables in relation to farmers and six in relation to
customers
7. Decided on Survey method for collection of data
8. survey completed using questionnaire carrying questions related the identified
variables
9. Data analysis and interpretation
10. Preparation of report
 Period of Study:
This study is conducted for period of 45 days starting from 15th
September 2012 to 31st t
October 2012.
 Mode of Study:
The study is conducted in person by field survey method and personnel
interviews. The Farmers and Customers are surveyed by way of printed structured
questionnaire which is prepared based on identified variables.
In addition to the stake holding member farmers and customers, the
Board of Directors, Managers and CEO’s of APCOS and dairy Officials etc are
interviewed personally in an unstructured manner.

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1X.04.02 Date Collection From Secondary Sources:
This Study is done on exploratory research method as there is no
published and known document available on the specific problem of this study. Therefore
the secondary data collection is solely resorted only for gathering financial,
organizational and managerial data. The statistical data on the population of units of
analysis is also collected by way of secondary sources.
1. Annual Reports of KCMMF Ltd
2. Annual Report of TRCMPU Ltd
3. Audit Report
4. Bye Laws
5. Web Site
6. Company Brochures
7. Published Data
8. Statistical Data from Government Department

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1X.04.03 Date Collection from Primary Sources
Being an exploratory research, much importance is given to primary sources
for collection of data. The data collection is done mainly by way of structured
questionnaires survey. The major sources resorted for primary data collection is as
follows.
Primary Sources for Data Collection By Way Of Structured Questionnaire:
1. Dairy Farmer Members of APCOS , namely Idchakkaplammoodu
KUCS, Kallyam KUCS & Vellanad KUCS
2. Customers Residing Within Thiruvananthapuram Corporation and
Neighboring Municipalities and Grama Panchayats.
Primary Sources for Data Collection By Way Of Unstructured Interview:
1. CEO’s / Secretaries of APCOS stated above
2. Members of Board of Directors of TRCMPU Ltd
3. CEO of TRCMPU Ltd
4. CEO of Thiruvananthapuram Dairy
5. Functional Managers of Thiruvananthapuram Dairy
6. Manager- P& I of TRCMPU Ltd
7. Government Officials of Dairy Development Department
8. Chairman & CEO of Farmers Welfare Board

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1X.04.04 Sampling Techniques
A sample is made up of the members of a population. Population
refers to the body of people or to any other collection of items under consideration for the
purpose of the research. The individual member or item of a population under study is
called a Unit of Analysis. A sample is said to be a Good Sample when it satisfies the
following aspects.
 Chosen At Random
 Large Enough To Cover The Study
 Unbiased.
 Sampling Of Farmers.
In the selection of respondent farmers, a random sampling method is adopted
to avoid instances of being biased. The three Primary Milk Co-operative Societies are
selected in random to avoid being biased. Once the Primary societies are selected in
random, the members of such societies are covered in full to avoid being biased in
selecting only one section or group of members within that society. The size of the
population and sample is as follows.
Table 2
Dairy Farmer - Respondents (In Numbers)
1 Total Dairy Farmer Population in Kerala 8,06,599
Total Dairy Farmer Population in Thiruvananthapuram
District
(As Per Statistics For 2009-2010 Availed From Dairy Development Board)
66,935
3 Random Sample Size Taken 100

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 Sampling of Customers.
In the selection of respondent customers also random sampling method is
adopted since the population is very large and scattered. The customers are among
the general public so that respondent are selected randomly as and where available
in group. Such locations identified are mainly offices, factories and social and
religious gatherings. This study has resorted mainly offices and factories and family
and friends circles to locate customer respondents.
The size of the population and sample is as shown in the table (2) below
Table 3 -Sampling of Customers - Population Estimate
Customer - Respondents
(Source – National Population Senses -2011 )
Population Of Thiruvananthapuram District 3,307,284 Nos.
Rural Population 1,528,030 Nos.
Urban Population 1,779,254 Nos.
No Of Families In The District 7.85 Lakhs
Average Size Of A Family In The District 4.19 Nos.
Total No. Of Members In The Families 33.60 Lakhs
Estimated Daily Consumption Per Person 0.350 ml
Estimated Daily Consumption of a 4.19 member
Family
1.470 ml
Estimated Output Of TVM Dairy A Day 2,00,000 litres
Estimated No. Of User Families (2,00,000/1.470) 136054 Nos.
Random Sample Size 117 Nos.

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1X.04.05 Scaling Technique
This study being an exploratory one in nature, relay basically on descriptive
statistics to measure the level of satisfaction or agreement of the respondent to a given
statement. Therefore an ordinal scaling technique is opted and specifically Likert’s Five
Point Scale is selected. Ordinal scale observations are ranked in some measure of
magnitude. Numbers assigned to groups express a "greater than" relationship; however,
how much greater is not implied. The numbers only indicate the order. Examples of ordinal
scale measures include letter grades, rankings, and achievement (low, medium, high).
Other scaling methods available are as follows
 Nominal scale: In the nominal scale, observations are assigned to categories based
on equivalence. Numbers associated with the categories serve only as labels. Examples of
nominal scale data include gender, eye color, and race.
 Interval scales: - Interval scale data also use numbers to indicate order and reflect a
meaningful relative distance between points on the scale. Interval scales do not have an
absolute zero. An example of an interval scale is the IQ standardized test.
 Ratio scale; - A ratio scale also uses numbers to indicate order and reflects a
meaningful relative distance between points on the scale. A ratio scale does have an
absolute zero. Examples of ratio measures include age and years of experience.
A Likert scale is a psychometric scale commonly involved in research that
employs questionnaires. It is the most widely used approach to scaling responses in survey
research, such that the term is often used interchangeably with rating scale, or more
accurately the Likert-type scale, even though the two are not synonymous.

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The scale is named after its inventor, psychologist Rensis Likert .Likert
distinguished between a scale proper, which emerges from collective responses to a set of
items (usually eight or more), and the format in which responses are scored along a range.
Technically speaking, a Likert scale refers only to the former.
The difference between these two concepts has to do with the distinction
Likert made between the underlying phenomenon being investigated and the means of
capturing variation those points to the underlying phenomenon. When responding to a
Likert questionnaire item, respondents specify their level of agreement or disagreement on
a symmetric agrees-disagree scale for a series of statements. Thus, the range captures the
intensity of their feelings for a given item while the results of analysis of multiple items (if
the items are developed appropriately) reveals a pattern that has scaled properties of the
kind Likert identified.
In descriptive statistics the difficulty of measuring attitudes, character, and
personality traits lies in the procedure for transferring these qualities into a quantitative
measure for data analysis purposes. In response to this difficulty Likert (1932) developed a
procedure for measuring attitudinal scales. The original Likert scale used a series of
questions with five response alternatives:
Table 4 Likert’s Scale Illustration
Response
Strongly
Approve
Approve Undecided Disapprove
Strongly
Disapprove
Mean
Score
Individual or
Group
Sum Score
X1 X2 X3 X4 X5
∑X
n
5 Point
Weightage 5 4 3 2 1
(Where n= No.
of Responses )
Score X1 x 5 X2 x 4 X3 x 3 X4 x 2 X5 x 1

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Responses from the series of questions are used to create an
attitudinal measurement scale. Data analysis is based on the composite score from the
series of questions that represented the attitudinal scale. A Likert scale is composed of a
series of multiple, generally four or more, Likert-type items that are combined into a single
composite score/variable during the data analysis process. Combined, the items are used to
provide a quantitative measure of a character or an attitude. An example of the Likert
scaling used in this study is shown in Table (3) above.

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1X.04.06 Data Analysis Tools & techniques
1. Analyzing Likert Response Items
To properly analyze Likert data, one must understand the measurement scale
represented by each. Numbers assigned to Likert-type items express a "greater than"
relationship; however, how much greater is not implied. Because of these conditions,
Likert-type items fall into the ordinal measurement scale. Descriptive statistics
recommended for ordinal measurement scale items include a mode or median for central
tendency and frequencies for variability. Additional analysis procedures appropriate for
ordinal scale items include the chi-square measure of association, Kendall Tau B, and
Kendall Tau C.
Likert scale data, on the other hand, are analyzed at the interval measurement
scale. Likert scale items are created by calculating a composite score (sum or mean) from
four or more type Likert-type items; therefore, the composite score for Likert scales
should be analyzed at the interval measurement scale. Descriptive statistics recommended
for interval scale items include the mean for central tendency and standard deviations for
variability. Additional data analysis procedures appropriate for interval scale items would
include the Pearson's r, t-test, ANOVA, and regression procedures. Table 3 provides
examples of data analysis procedures for Likert-type and Likert scale data.
Table 5 Suggested Data Analysis Procedures for Likert-Type and Likert Scale Data
Suggested Data Analysis Procedures for Likert-Type and Likert Scale Data
Likert-Type Data Likert Scale Data
Central Tendency Median Or Mode Mean
Variability Frequencies Standard Deviation
Associations Kendall tau B or C Pearson's r
Other Statistics Chi-square ANOVA, t-test, Regression
Source :- Journal of Extension (JOE) www.joe.org Harry N. Boone, Jr. Deborah A. Boone West Virginia University, USA

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2. Analysis of Stand Alone Individual Questions with Likert’s Response
Option:-
The data analysis decision for Likert items is made at the
questionnaire development stage itself. Where there are a series of individual questions
which can stand alone and that have Likert response options to be answered by the
respondents, then the data has to be taken as Likert’s Type items and Modes, medians,
and frequencies are the appropriate statistical tools to use.
3. Analysis of Combination Questions with Likert’s Response Option:-
Whereas if a series of Likert-type questions that when combined
describe an attitude, it is to be taken as a Likert scale and the sum data can be described
by using the means and standard deviations. If you feel a need to report the individual
items that make up the scale, only use Likert-type statistical procedures. Keep in mind
that once the decision between Likert-type and Likert scale has been made, the decision
on the appropriate statistics will fall into place.
An important distinction must be made between a Likert scale and a Likert
item. The Likert scale is the sum of responses on several Likert items. Because Likert
items are often accompanied by a visual analog scale (e.g., a horizontal line, on which a
subject indicates his or her response by circling or checking tick-marks), the items are
sometimes called scales themselves. This is the source of much confusion; it is better,
therefore, to reserve the term Likert scale to apply to the summed scale, and Likert item
to refer to an individual item.
Likert scaling is a bipolar scaling method, measuring either positive or
negative response to a statement. Sometimes an even-point scale is used, where the
middle option of "Neither agree nor disagree" is not available. This is sometimes called a
"forced choice" method, since the neutral option is removed. [7] The neutral option can
be seen as an easy option to take when a respondent is unsure, and so whether it is a true

38 | P a g e
neutral option is questionable. A 1987 study found negligible differences between the use
of "undecided" and "neutral" as the middle option in a 5-point Likert scale. [8]
Likert scales may be subject to distortion from several causes. And some of
the problems are as follows.
1. Respondents may avoid using extreme response categories (central
tendency bias);
2. agree with statements as presented (acquiescence bias);
3. Try to portray them in a more favorable light (social desirability
bias).
The above problems can be avoided by designing a scale with balanced
keying having an equal number of positive and negative statements .The positively
keyed items will balance acquiescence on negatively keyed items.
4. Scoring and analysis
After the questionnaire is completed, each item may be analyzed
separately or in some cases item responses may be summed to create a score for a group
of items. Hence, Likert scales are often called Summative Scales.
Whether individual Likert items can be considered as interval-level
data, or whether they should be treated as ordered-categorical data is the subject of
considerable disagreement in the literature. With strong convictions on what are the most
applicable methods. This disagreement can be traced back, in many respects, to the extent
to which Likert items are interpreted as being ordinal data.
There are two primary considerations in this discussion. First, Likert
scales are arbitrary. The value assigned to a Likert item has no objective numerical basis,
either in terms of measure theory or scale (from which a distance metric can be

39 | P a g e
determined). The value assigned to each Likert item is simply determined by the
researcher designing the survey, who makes the decision based on a desired level of
detail. However, by convention Likert items tend to be assigned progressive positive
integer values. Likert scales typically range from 2 to 10 – with 5 or 7 being the most
common. Further, this progressive structure of the scale is such that each successive
Likert item is treated as indicating a ‘better’ response than the preceding value. (This may
differ in cases where reverse ordering of the Likert Scale is needed).
The second, and possibly more important point, is whether the
‘distance’ between each successive Likert item is equivalent, which is inferred
traditionally. For example, in the above five-point Likert Scale, the inference is that the
‘distance’ between items 1 and 2 is the same as between items 3 and 4. In terms of good
research practice, an equidistant presentation by the researcher is important; otherwise it a
bias in the analysis may result. For example, a four-point Likert Scale–Poor, Average,
Good, Very Good–is unlikely to have all equidistant items since there is only one item
that can receive a below average rating. This would arguably bias any result in favor of a
positive outcome. On the other hand, even if a researcher presents what he or she believes
is an equidistant scale, it may not be interpreted as such by the respondent.
A good Likert scale, as above, will present symmetry of Likert items about a
middle category that have clearly defined linguistic qualifiers for each item. In such
symmetric scaling, equidistant attributes will typically be more clearly observed or, at
least, inferred. It is when a Likert scale is symmetric and equidistant that it will behave
more like an interval-level measurement. So while a Likert scale is indeed ordinal, if well
presented it may nevertheless approximate an interval-level measurement.
This can be beneficial since, if it was treated just as an ordinal scale, then
some valuable information could be lost if the ‘distance’ between Likert items were not
available for consideration. The important idea here is that the appropriate type of
analysis is dependent on how the Likert scale has been presented.

40 | P a g e
Given the Likert Scale's ordinal basis, summarizing the central
tendency of responses from a Likert scale by using either the median or the mode is best,
with ‘spread’ measured by quartiles or percentiles. Non-parametric tests should be
preferred for statistical inferences, such as chi-squared test, Mann–Whitney test, Wilcox
on signed-rank test, or Kruskal–Wallis test While some commentators consider that
parametric analysis is justified for a Likert scale using the Central Limit Theorem, this
should be reserved for when the Likert scale has suitable symmetry and equidistance so
an interval-level measurement can be approximated and reasonably inferred.
Responses to several Likert questions may be summed, providing that
all questions use the same Likert scale and that the scale is a defensible approximation to
an interval scale, in which case they may be treated as interval data measuring a latent
variable. If the summed responses fulfill these assumptions, parametric statistical tests
such as the Analysis Of Variance can be applied. These can be applied only when 4 to 8
Likert questions (preferably closer to 8) are summed.
Data from Likert scales are sometimes converted to binomial data by
combining all agree and disagree responses into two categories of "accept" and "reject".
The chi-squared, Cochran Q, or McNamara test is common statistical procedures used
after this transformation. Consensus Based Assessment (CBA) can be used to create
an objective standard for Likert scales in domains where no generally accepted or
objective standard exists. Consensus based assessment (CBA) can be used to refine or
even validate generally accepted standards.

41 | P a g e
Analysis Method Adopted: -
Based on the above discussion the Likert’s Scale Data is
analyzed using the following methods.
1. Percentage Analysis: -
Percentage is a statistic which summarizes the data by
describing the proportion or part in every 100. In this method the Percentage
Relative frequency is calculated using the following formula.
Percentage Relative Frequency =
∑
2. Mean Score Analysis: -
This is a Measure of Central Tendency Using the Mean Score
of a frequency distribution. In this method a large frequency distribution can be
represented by a single value. The formula used for calculating the Mean Score
is as follows.
=
∑
Where ̅ = Mean Score
X = Each Observation
∑X = Sum of each Observed Value
n = Total Number of Observations
3. Chi Square Test: -
Chi Square test is a Non Parametric Technique which is used
to assess the statistical significance of a finding by testing the contingency
(uncertainty of occurrence) or goodness of fit.

42 | P a g e
In this method frequency data from two situations is used to
match the differences. There will be a difference between the two sets of data.
The test involves two hypotheses namely Null Hypothesis and Alternate
Hypothesis denoted by H0 and H1 respectively. The null hypothesis will state
that the two variable are independent one another and the alternate hypothesis
state that they are associated.
The chi square test will find out whether there are any significant
differences between the actual (observed) frequencies and the hypothesized
(expected) frequencies. The idea is to test whether the difference is due to any
underlying universal differences or by merely to chance. The methodology of
Chi Square test is as follows.
a) Set up H0 and H1
b) Set table of observed frequencies (O) and total rows and columns
c) Calculate the Estimated frequency (E) using the formula ( Row total
x Column Total ) / Grand Total and set the value in table form
d) Find 2
using the formula ∑
( )
,
e) If O & E agrees, the Test Statistic 2
will have low value.
f) A high value of Test Statistic 2
denote poor agreement of O & E
g) Find out the 5% critical value , beyond which null hypothesis to be
rejected for accepting the alternate one, using the formula
v= (r-1) (c-1) where; v = Degree of Freedom
r= No. of Rows excluding totals
c= No. of columns excluding totals

43 | P a g e
1X.05 Scope of the Study
Scope tells what are inside and help to know what are outside. This study
being conducted as the part of MBA programme Curriculum, has limited scope as stated
below.
i. Conduct a 45 days Study on the Strategic Intent of Milma with
reference to its Thiruvananthapuram Dairy Plant.
ii. Examine the level of satisfaction of existing & potential milma
Customers coming under the operational area of
Thiruvananthapuram dairy
iii. Examine the level of satisfaction of APCOS Member farmers
coming under the operational area of Thiruvananthapuram dairy
on performance of milma in providing remunerative price,
production inputs.
iv. Critically evaluate the strategic Intent of milma using SWOT,
ETOP and SAP Techniques

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1X.06 Limitations
1. This is study on strategic intent of milma as a whole is conducted with special
reference to Thiruvananthapuram Dairy only. Since organizational set up and
area of operation of milma is spread all over Kerala, this study has to be
restricted within Thiruvananthapuram District only.
2. Farmer respondents are selected based on cluster method and only three
different location could be fully covered for farmer survey
3. Farmers being a scattered lot could be contacted only when they come to the
collection centres for pouring milk. When contacted many of the farmers
were reluctant to express freely in the APCOS premises.
4. Directors of APCOS were not available for interviews and hence only the
CEO’s of the Societies are interviewed. Hence personal interviews with
Directors not attempted.

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1X.07 Chapterisation
Chapter 1:
Introduction - Includes the General introduction to this study
and the Statement of the Problem, Review Literature, Objectives,
Research Design, and Scope of the Study & Limitations.
Chapter 2
Industry Profile including briefs on Co-operatives and Dairy
Co-operatives in India
Chapter 3
Company Profile – including Apex federation and member
Unions and their structure
Chapter 4 Data Analysis & Interpretation
Chapter 5 ETOP , OCP & SAP Analysis
Chapter 6 Findings Conclusions & Suggestions

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Chapter 2.
VIII. Industry Profile

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X. Industry Profile:-
The Dairy Industry Profile is analyzed in three levels namely;
1. Global Level
2. National level
3. State Level
1.0 Global Level:-
The Dairy Industry is one of the largest and most dynamic global
agricultural industries. Dairy farming is an agricultural activity that refers to the
production of milk from farm animals. The dairy industry encompasses businesses from
the farm gate through to food manufacturing. And dairy products include any food
product originally derived from animal milk.
1.1 Industry Segmentation:-
Raw fluid milk is the initial product produced in any dairy operation,
irrespective of size, structure or source. This milk is consumed ‘as is’, or can be then
processed into an increasing number of food products for human consumption. Such
processing usually either involves heating, drying or separating the raw milk. Processed
dairy products include:
At a global level, one third of total dairy milk production is consumed as fluid milk with
the remaining two thirds processed. Cheeses account for around half of dairy products,
followed by butters (nearly 30%) and the remainder consumed as powders (skim or
whole milk).

48 | P a g e
Figure: 2 Global Factory Milk Use by Product (2010)
1.2 Geographical Segmentation:-
The European Union is the largest dairy producing region, with annual
(cow) milk production in 2010 of 134 million tonnes, followed by the US (86million
tonnes), India (47.7million tonnes) and Russia (32.8million tonnes). India has the
largest dairy cattle herd with 38.5 million cows, followed by the EU-27 with
23.7million cows. Indian milk yields are notably inferior to the standards set in the
developed world. India is the world’s most significant consumer of ‘fluid’ milk with
annual consumption of 47.1million tonnes in 2010 vs the EU-27’s 33.7 million tonnes
and 27.9 million tonnes in the US. The majority of India’s milk production is consumed
as ‘fluid’ milk rather than processed in other products as is the case in other regions.

49 | P a g e
1.3 Industry Performance:-
The dairy industry, unlike many other agricultural industries, has had an
inconsistent growth profile. Global dairy cow numbers fell from a peak of 174 million
head in 1984 to 139 million head by the mid 1990’s. Cow milk production declined from
441 million tons in 1990 to 370 million tons by 1997, representing a total decline of 17%
over 7 years. Despite the growth at 1.7% pa over the past decade, current global level at
439.4 million tones is below the 1990 peak.
The growth in the dairy industry over the past decade has not been with without some
challenges: The grain price spike of 2007/08 pressured production margins and resulted
in a moderation in cow productivity (via reduced volumes of grain fed to animals). The
Global Financial Crisis resulted in further herd liquidation (3% contraction in the 2 years
from 2007 to 2009), which caused a 1% decline in total cow milk production over the
period
Figure3:-Global Cow Numbers & Productivity:-
1.4 Global Milk Production:-
Figure4:- Share of Cow Milk within Total Milk Production

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2.0 National Level:-
India, the world's largest milk producer, accounts for around 20 per cent of
global milk production, with most of it consumed domestically. India ranks first in the
world in milk production, which went up from 17 million tons in 1950-51 to 121.84
million tons in 2010-11.
The per capita availability of milk has also increased from 112 grams per
day in 1968-69 to 281 grams in 2010-11. However, world average per capita availability
was 284 grams per day in 2009-10 compared to 273 grams per day for India. The Indian
dairy sector acquired substantial growth momentum from the Ninth Plan onwards,
achieving an annual output of 121.84 million tones of milk during 2010-11 (Table
8.10).
This represents sustained growth in the availability of milk and milk products for
the growing population of the country. Dairying has become an important secondary
source of income for millions of rural families and has assumed an important role in
providing employment and income-generating opportunities. Andhra Pradesh, Bihar,
Haryana, Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh are the
leading milk producing states in the country
Tables-1 :-Milk Production & Per Capita Availability of Milk:-Last updated: Feb
29, 2012
Year
Production (Million
Tonnes)
Per Capita Availability
(gms/day)
1991-92 55.7 178
1992-93 58.0 182
1993-94 60.6 187
0
50
100
150
200
250
300
Figure: 5- Per Capita Grams per Day Availability of Milk Vs. Milk Production of
in Million Tones
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8.10).
29, 2012
Year
Production (Million
Tonnes)
(gms/day)
1991-92 55.7 178
1992-93 58.0 182
1993-94 60.6 187
in Million Tones
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8.10).
29, 2012
Year
Production (Million
Tonnes)
(gms/day)
1991-92 55.7 178
1992-93 58.0 182
1993-94 60.6 187
in Million Tones

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A study conducted by ASSOCHAM titled, “Indian Dairy Industry: The
Way Ahead” says;
 Milk production is likely to climb to 190 million tons in 2015 from current
123 million tones.
 60 % of milk is consumed in liquid form, and 40 % is used in the form of
butter, clarified butter (desi ghee), cheese, curd, paneer, ice cream, dairy
whiteners and traditional sweets.
 Annual Growth rate is 10 % and Indian dairy industry is predominantly
controlled by the unorganized sector, which accounts for nearly 85 %
 Eight crore rural families are engaged in dairy production and the rural
market consumes over half of the total milk produced.
 The major causes behind the of lowering retail consumption of milk and
escalating milk prices in the domestic market are
a. Upward spiral in prices
b. Lack of proper chilling facilities and cold storage infrastructures
c. Absence of a transparent milk pricing system.
d. Lack of fodder resulting in low yield from cattle
Figure6:- Indian Dairy Industry: Raw Milk Consumption Vs Product Conversion
40%
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Way Ahead” says;
123 million tones.
60%
40%
Whole Milk
Consumption
Product
Conversion
51 | P a g e
Way Ahead” says;
123 million tones.
Whole Milk
Consumption
Product
Conversion

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2..1 National Dairy Plan (NDP):-
Despite the initiated growth by White Revolution in 1970s, Indian dairy
industry marked a drop in milk production with annual production decreasing to 3.8
per cent in the 2000s from 4.3 per cent in the 1990s. India currently produces 120
million tons of milk per annum. But as per government estimates, by 2021-22, the
demand is expected to be for 180 million tons This implies that for the next ten years
from now, production would have to grow at 5.5 per cent year on year. To achieve this
India would have to primarily find ways of boosting the productivity of its milk
animals from a daily average of 3.4 Kg to 6. 0 Kg, which is the global standard.
. To meet the growing demand and accelerate dairy development in the
country, the National Dairy Development Board (NDDB) is all set to launch a National
Dairy Plan (NDP) aimed at improving animal productivity, strengthen /expand
infrastructure for milk procurement at the village level and enhance milk processing
capacity. The World Bank funds will help the National Dairy Support Project
operationalize the first phase of the NDP’s work aimed at enhancing animal
productivity and improving the access of farmers to organized milk marketing channels.
The Project will cover some 40,000 villages across 14 major dairying states and is
expected to directly benefit around 1.7 million rural milk producing households. The
major focus of NDP will be to Increasing Milk Production by way of
 Improved Genetic Quality Of Dairy Herd
 Optimal Use of Feed and Fodder.
 Support Long-Term Investments In Animal Breeding,
 Extensive Training Of Dairy Farmers And
 Doorstep Delivery of Artificial Insemination.
 Promote Balanced Animal Feed And Nutrition

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2..2 Dairy Co-operative Sector in India
Dairy Cooperatives account for the major share of processed liquid milk marketed in
the country. Milk is processed and marketed by 170 Milk Producers' Cooperative Unions,
which federate into 15 State Cooperative Milk Marketing Federations. The Dairy Board's
programmes and activities seek to strengthen the functioning of Dairy Cooperatives, as
producer-owned and controlled organizations. NDDB supports the development of dairy
cooperatives by providing them financial assistance and technical expertise, ensuring a better
future for India's farmers. Over the years, brands created by cooperatives have become
synonymous with quality and value. The Major Indian Brands those that have earned
domestic customer confidence are;
 Amul Gujarat,
 Vijaya Andra Pradesh,
 Verka Punjab,
 Saras Rajasthan.
 Nandini Karnataka,
 Milma Kerala and
 Gokul Kolhapur ;
Some of the major Dairy Cooperative Federations include:
1. Andhra Pradesh Dairy Development Cooperative Federation Ltd (APDDCF)
2. Bihar State Cooperative Milk Producers' Federation Ltd (COMPFED)
3. Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF)
4. Haryana Dairy Development Cooperative Federation Ltd. (HDDCF)
5. Himachal Pradesh State Cooperative Milk Producers' Federation Ltd (HPSCMPF)
6. Karnataka Cooperative Milk Producers' Federation Ltd (KMF)
7. Kerala State Cooperative Milk Marketing Federation Ltd (KCMMF)
8. Madhya Pradesh State Cooperative Dairy Federation Ltd (MPCDF)
9. Maharashtra Rajya Sahakari Maryadit Dugdh Mahasangh (Mahasangh)
10. Orissa State Cooperative Milk Producers' Federation Ltd (OMFED)
11. Pradeshik Cooperative Dairy Federation Ltd (UP) (PCDF)
12. Punjab State Cooperative Milk Producers' Federation Ltd (MILKFED)
13. Rajasthan Cooperative Dairy Federation Ltd (RCDF)
14. Tamilnadu Cooperative Milk Producers' Federation Ltd (TCMPF)
15. West Bengal Cooperative Milk Producers' Federation Ltd. (WBCMPF)

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3.0 State Level:-
3.1 Milk Production
As per the statistics published by Department of Animal Husbandry, Dairying &
Fisheries, Ministry of Agriculture, GoI, Kerala stands 13th
in Milk production with 26,
45,000 Tonnes Per Annum.
Figure:7:- Estimates of Milk Production - State wise in 1000 MT - last updated: Feb 29, 2012
3.2 Production cost statistics in Kerala
The high cost of production ad low Milk production Yield have rendered
dairy production in the State uneconomic and non-remunerative owing to which several
farmers had left dairying.
Milk is a critical component of the daily diet and food chain and hence,
sustaining internal production is of strategic importance to the food security of the State. This
underscores the significance of identifying and developing such areas as priority milk sheds
through focussed dairy development programmes.The actual cost of production is far in
excess of the procurement price of Rs.18.63 for cow's milk with fat at 3.5 per cent and solid
not fat at 8.5 per cent fixed in the State.
Kerala – 26, 45,000 Tonnes
54 | P a g e
3.0 State Level:-
3.1 Milk Production
54 | P a g e
3.0 State Level:-
3.1 Milk Production

55 | P a g e
Nearly 48 per cent of the overall cost is on feed, 32 per cent on labour, 12 per
cent on maintenance of cows during the non-lactating period and the remaining eight per cent
on breeding and health cover, interest on investment in cows and loss in value of cows during
lactation. The average gross cost of production of milk across the two seasons — the flush
and lean seasons — and the statistics are as follows.
Table 6:- Statistics on– Production Cost, Yield, Cost Factor Ratio & Procurement Rate
Source: Dairy Expert Committee report by N.R. Unnithan appointed by KCMMF
Production Cost In Rupees
Region Flush Season Lean Season
Malabar Region 28.49 27.75
Ernakulam Region 25.01 24.48
Thiruvananthapuram 26.88 26.64
State Average 26.75 26.27
Region Milk Yield
in Liters Per day
Malabar Region 7.39
Ernakulam Region 9.20
Thiruvananthapuram 9.46
State Average
Production Cost factors Factor %
Cost Of Feed 48%
Labour Cost 32 %
Rearing &Maintenance Non Lactating Period 12 %
Breeding,
Health Cover
Interest On Investment &
Loss In Value Of Cows During Lactation.
08 %
Region
Milk Procurement Price
in Rs.
State Average (3.5% Fat & 8.5 SNF) 18.63

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Chapter 3.
XI. Company Profile
XI.01 Name, Location & Address
XI.02 History
XI.03 Strategic Intent
XI.04 Products
XI.05 Organizational Structure

57 | P a g e
XII. Company Profile
XI.01 Name, Location & Address:
“Thiruvananthapuram Dairy” (hereinafter referred to as “the Plant”) is a
division of Thiruvananthapuram Regional Co-operative Milk Producer’s Union
Limited- TRCMPU Ltd (hereinafter referred to as “the Union”) and is the first
Dairy plant in Kerala.
The plant is located in Ambalathara Village of Thiruvananthapuram
District, Kerala State and situated on Thiruvananthapuram - Kovalam road nearly
5 Kilometers away from Thiruvananthapuram Central Railway Station and 6 Km
from Thiruvananthapuram International Air Port.
The Registered Office Address of the plant is as follows.
General Manager,
Thiruvananthapuram Dairy,
Poonthura P.O., Ambalathara, Thiruvananthapuram.
Telephone: +91-471-2381410, 2382562, 2381228, 2384148, 2382982
Email: milmatd@gmail.com
The plant is located in a 13 acre plot area housing the Dairy Plant,
Administrative Building and Storage Facilities etc. Total of 270 personnel are
employed directly and 150 indirectly. The plant is having 3 Lakhs Litter milk
processing capacity and is the highest capacitated plant under the Union. The
procurement and marketing net work is spread out in the whole of
Thiruvananthapuram district teaming up with 148 Member Societies and 10 numbers
of own outlets and nearly 800 milk supply agents and 200 customer institutions.
Carrying vehicles including milk tankers covering and

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XI.02 History
Thiruvananthapuram Dairy originally established in 1980
under the ownership of Kerala Sate Cooperative Milk Marketing Federation Ltd
(KCMMF Ltd), an apex body of Milk Producer’s Union in the state, was transferred to the
ownership of TRCMPU Ltd in 1985. The plant is one among the three dairy plants owned
by the Union. The other two dairy plants are located at Kollam and Pathanamthitta
Districts in Kerala.
Thiruvananthapuram Regional Co-operative Milk Producers' Union Ltd
(TRCMPU) was registered in 1985, as a Regional Milk Union having 4 Southern
Districts of Kerala viz, Thiruvananthapuram, Kollam, Alappuzha and Pathanamthitta as
its area of operation. TRCMPU was formed by dividing the area of operation of Kerala
Milk Marketing Federation, formed for implementing Operation Flood II project in
1980, in to two regional Unions viz Ernakulam Regional Co-operative Milk Producers'
Union Ltd (ERCMPU Ltd ) with 4 northern districts under OF II area, and TRCMPU.

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XI.03 Management:
The Thiruvananthapuram Dairy being a division of TRCMPU Ltd. is being
governed by the Board of Directors of the TRCMPU with executive power vested with the
General Manager for Management of the day to day affairs of the Dairy plant.
The Board of Directors:
Vide Clause 19.1 of the Bye law, an elected board of Directors, of not more
than 18 members, is responsible for the governance of the Union and the structure of the
Board of directors will be as follows.
Table 7 : Structure of Board of Directors
# Member Type No.
1 General Constituency 14
2 Women Constituency 03
3 SC/ST Constituency 01
Total 18

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XI.04 Strategic Intent
The strategic Intent or the objectives of the Union and that of the
Thiruvananthapuram Dairy being a division of the union, as stated in their Bye-Laws
under Clause 3.0 are as follows.
Tables:-5
3.0 Objectives
3.1 The objectives of the union shall be to carry out activities conducive to the socio economic
development of the milk producers by effectively organizing production, processing and
marketing of commodities as per the direction of the Federation.
Of the above, the prime objective “socio economic development of
the milk producers” and the extent of meeting the same through the procurement
strategy of milma is emphasized in this study and put to analysis to find the efforts by
Thiruvananthapuram Dairy to its fulfillment.
To this end, the strategic Intent along with the relevant sub clauses as per
bye law provisos are analyzed and matched with the production enhancement and input
programmes at The Thiruvananthapuram dairy Level and the corresponding
performance growth in Produced & Procured Milk Quantity, Value Addition efforts and
distribution of resultant benefits to the member milk producers.

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XI.05 Products
Table 8 : Milma Product Mix: Marketed by Thiruvananthapuram dairy
Product Name Product Description Packing Unit Price
1 Mila Smart Milk 1.5 % fat & 9.0% SNF 500 gm 13.50
2 Toned Milk-Homogenized Milk 3.0 % Fat & 8.5% SNF 500 gm 15.00
3 Milma Jersey Milk 3.5 % Fat & 8.5 % SNF 500gm 15.00
4 Milma Rich Plus Milk 3.8 % Fat & 9.0% SNF 500gm 16.00
5 Ghee Golden Color Ghee 50 ml 21.50
6 Ghee Golden Color Ghee 100ml 40.00
7 Ghee Golden Color Ghee –Pet Jar 200ml 76.00
8 Ghee Golden Color Ghee –Pet Jar 500ml 175.00
9 Ghee Golden Color Ghee –Pet Jar 1 Ltr 330.00
10 Ghee Golden Color Ghee 2 Ltr 645.00
11 Ghee Golden Color Ghee 5ltr 1600.00
12 Butter Natural Golden Salted/Unsalted 100 gm 30.00
13 Butter Natural Golden Salted/Unsalted 500 gm 145.00
14 Cassata Milcream 120 ml 20.00
15 Chocó bar Milcream 60 ml 12.00
16 Delite Milcream 120 ml 25.00
17 Kulfi Milcream 60 ml 18.00
18 Chocolate Milcream 100 ml 22.00
19 Curd Cultured 500 gm 17.00
20 Sambaram Traditional 200 ml 5.00
21 Peda Milk Based Sweet 15 gm 5.00
22 Peda Milk Based Sweet 150 gm 50.00
23 Paneer Coagulated Milk 100gm 26.00
24 Paneer Coagulated Milk 1 Kg 230.00
25 Dairy Whitener Skimmed Milk Powder 200 gm 150.00
26 Dairy Whitener Skimmed Milk Powder 500 gm 62.00
27 Milk Lolly Pasteurized Milk & added Sugar Per Piece 3.00
28 Milk Beats Chocolate Per Piece 10.00
29 Chocó Beats Chocolate Per Piece 10.00
30 Milma Krispy Chocolate Per Piece 5.00
31 Milky Thunder Chocolate Per Piece 5.00
32 Chocó Chat Chocolate Per Piece 2.00
33 Milma Mango UHT Tech Drink 200ml 12.00
34 Milma Mango UHT Tech Drink 500ml 28.00
35 Milma Mango UHT Tech Drink 1 Ltr 48.00
36 Milma Plus Sterilized Flavoured Milk 200ml 20.00
37 Ice candy Water Based Lolly Per Piece 2.00
38 Yoghurt Milk - Fermented with Lactobacillus Bacteria 100 ml 15.00
39 Shrikand Lactic Fermented Curd Per Pack 16.00
40 Drinking Water Filtered Potable Water 1 Ltr 12.00
41 Palada Mix Traditional Payasam Mix 200gm 50.00
Source: Marketing Cell, Thiruvananthapuram Dairy

62 | P a g e
Thiruvananthapuram Dairy being the dairy plant fully owned by TRCMPU
Ltd is under the control of the Board of Directors of the Union. The Kerala State Co-
operative Milk marketing Federation being the Apex Body for Dairy Co-operative Unions in
Kerala , having all registered milk unions in the state as its members has a self assigned
role to advise ,guide and control the Milk Unions in all aspects of management ,supervisions
and audit functions as stipulated under clause 3.2.7 of its bye laws is exercising supervisory
powers on the Union.
The administration of the Dairy plant is entrusted with the General Manager
of the plant and has the hierarchical span of control as Shown in Figure-11
Figure-8:- Organizational Structure of Tvm Dairy
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62 | P a g e

63 | P a g e
XI.06.1 Functional Departments
Thiruvananthapuram Dairy Plant is having the following 9 functional departments
under the unity of command of General Manager.
1) Office of the General Manager
2) Finance & Accounts Department
3) Human Resource Department
4) Procurement & Inputs Department
5) Production Department
6) Products Department
7) Quality Control Department
8) Marketing Department
9) Purchase & Stores Department
10) Maintenance Department
The span of control and their functional roles in discharging the internal
management and roles and responsibilities in the day to day activities are discussed below.

64 | P a g e
1. Office of the General Manager
 Staff Pattern
2. Finance & Accounts Department
Staff Pattern:-
 Functions
Finance is the life blood of a business and management of Finance and
Accounts has its prominence in every organization. The Finance and Accounting
function of a business organization is included of the following activities
 Financial Planning & Controlling
 Sourcing of Funds
 Working Capital Management
Accounts Manager
Accounts Officer
Asst. Accounts Officer
Senior / Junior
Superintendent
Senior/junior
Assistants

65 | P a g e
 Book Keeping & Accounting
 Audit & Inspection
3. Human Resource Department
Staff Pattern:-
In a modern Total Quality environment, Personnel are considered as Core
Assets of the firm and enhancement of individual and group capabilities is considered to be
the key area of concern of HRM – Human Resource Management. The Functions of an
HR Department in this regard can have two aspects.
 Personnel Management: It deals with Recruitment, Selection, Placements,
Remuneration, Transfer and Termination.
 Human Resource Development: HRD has a humane side and it is more concerned
with the well being of employees.
An ideal HRM system must have an approach proactive to the wants and needs of
workers. Such an approach will help create mutual trust, confidence, motivation and
good interpersonal and industrial relations. The goal redefined for HRM is to retain a
contended, highly motivated work force that help the organization retain customers and
thus help earn profit. The HRM function in Thiruvananthapuram dairy is largely
Personnel oriented and HRD activates are being organized in the Union level.

66 | P a g e
4. Procurement & Inputs Department
 Staff Pattern
 Importance of P& I Department:-
The Procurement & Inputs (P&I) Department is assigned of helping the member
farmers in achieving high yield milk production through Milk Production Enhancement
Programmes at farm level and optimal procurement of milk from farmers’ societies.
 Milk Production Enhancement Programmes :- The major Milk Production
Enhancement Initiatives are;
1. Artificial Insemination
2. Feed and Fodder Programme
3. Total Mixed Ration Programme
4. Heifer Development Programme
5. Farm Support Programme
6. Decentralized Veterinary Units
7. Procurement of Milk by Societies / Union
8. Insurance Schemes
9. Women Cattle Care Programme
10. Co-operative Development / Institution Building Programme
11. Awards and scholarships

67 | P a g e
5. Production & Products Department
 Staff Pattern
 The Milk Processing Cycle:-
Figure9-Process Flow for Packed Milk for Retailing
 Milk Products:-
1. Curd:
2. Sambaram:
3. Ghee-
Figure: 10-Production process of sambaram-flow chart
Figure11-Production process of ghee- flow chart
Start Receiving the cream Testingof cream(FAT %) Heating (120 0c)
Pumping ghee to settingtankClarification of ghee to cansLabeling of cans
Seedingof cans Shiftingof cans to ghee store End

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6. Quality Control Department
Quality policy:-
The quality policy as stated by the organization is as follows.
QUALITY POLICY
TRCMPU in Thiruvananthapuram Dairy are committed
to comply with requirements and continually improve effectiveness
of the Quality Management system and to enhance the satisfaction
of customers and milk producers by providing consistent quality
products and services through implementation of Quality
Management System.
Functions of Quality Control Departments
The main function of quality control department is the inspection of
incoming milk of each society and outgoing products. Inspection is mainly conducted
in order to make sure that the production is carried out as per their standards.
1. Quality Standards Of Out Going Milk
Table 9: - Milk Quality
Products FAT% SNF%
Toned Milk 3.00 8.50
Homogenized Milk 3.00 8.50
Milma Rich 4.50 9.00

69 | P a g e
7. Marketing Department :-
1. Functions of Marketing Department
Marketing is one of the three key functional areas of TRCMPU Ltd. and it is
the only functional area responsible for generating income for the Union. Marketing
comprises of the following two broad areas.
1. Marketing of Fresh Products.
Marketing of Fresh Products like packed whole milk an Curd, is a major
responsibility being carried out by the marketing. The Marketing activities in the dairy
can be broadly classified into
(1) Distribution Management and
(2) Market Development Activities.
2. Marketing of Long Life products.
.
 Market Development And Supply Management
 Study New Markets
 Identifying Marketing Problem And Measures To Solve The Problem
 Finding New Customers
 Canvas For Bulk Orders
 Increasing Sale And Networking
Marketing Personnel:-
The Marketing Officers are to lead the field operations and assisted by
Assistant Marketing Officers and Market Organizers. Assistant Marketing Officer
concerned with activities regarding supply management. That means the distribution
of milk and milk products giving details to the production departments about how
much to produced to next day. He is also responsible about the marketing accounting
and market development activities. The whole operation of marketing in the plant
level and it’s planning and control is the responsibility of Manager – Marketing.

70 | P a g e
Milma Products:-
Table 10 Milma Products:-
Product Packing Product Description
1 Mila Smart 500 gm Milk 1.5 % fat & 9.0% SNF
2 Milk-Homogenized 500 gm Milk 3.0 % Fat & 8.5% SNF
3 Milma Jersey 500gm Milk 3.5 % Fat & 8.5 % SNF
4 Milma Rich Plus 500gm Milk 3.8 % Fat & 9.0% SNF
5 Ghee 50 ml Golden Color Ghee
6 Ghee 100ml Golden Color Ghee
7 Ghee 200ml Golden Color Ghee –Pet Jar
8 Ghee 500ml Golden Color Ghee –Pet Jar
9 Ghee 1 Ltr Golden Color Ghee –Pet Jar
10 Ghee 2 Ltr Golden Color Ghee
11 Ghee 5ltr Golden Color Ghee
12 Butter 100 gm Natural Golden Salted/Unsalted
13 Butter 500 gm Natural Golden Salted/Unsalted
14 Cassata 120 ml Milcream
15 Chocó bar 60 ml Milcream
16 Delite 120 ml Milcream
17 Kulfi 60 ml Milcream
18 Chocolate 100 ml Milcream
19 Curd 500 gm Cultured
20 Sambaram 200 ml Traditional
21 Peda 15 gm Milk Based Sweet
22 Peda 150 gm Milk Based Sweet
23 Paneer 100gm Coagulated Milk
24 Paneer 1 Kg Coagulated Milk
25 Dairy Whitener 200 gm Skimmed Milk Powder
26 Dairy Whitener 500 gm Skimmed Milk Powder
27 Milk Lolly Per Piece Pasteurized Milk & added Sugar
28 Milk Beats Per Piece Chocolate
29 Chocó Beats Per Piece Chocolate
30 Milma Krispy Per Piece Chocolate
31 Milky Thunder Per Piece Chocolate
32 Chocó Chat Per Piece Chocolate
33 Milma Mango 200ml UHT Tech Drink
34 Milma Mango 500ml UHT Tech Drink
35 Milma Mango 1 Ltr UHT Tech Drink
36 Milma Plus 200ml Sterilized Flavoured Milk
37 Ice candy Per Piece Water Based Lolly
38 Yoghurt 100 ml Milk - Fermented with Lactobacillus Bacteria
39 Shrikand Per Pack Lactic Fermented Curd
40 Drinking Water 1 Ltr Filtered Potable Water
41 Palada Mix 200gm Traditional Payasam Mix
42 Cattle Feed 100kg Bag Mash & Pellet form of cattle feed

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