Akhil Appu-Converted (1) New

KCMMF,PATHANAMTHITTA
CHAPTER 1
INTRODUCTION
SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

1. INTRODUCTION
Internship study helps a researcher to understand the working and policy making
activities of a company as a whole. It provides a researcher the practical knowledge
about functioning and coordination of the activities of various departments in the
organization and develops practical knowledge about the working of the
organization. It provides both theoretical and practical knowledge regarding various
aspects of management and implications which would condition and gear the
prospective managers to face the challenges lying ahead.
MILMA is a brand that stands for milk and a wide range of milk products that have
earned the trust of every Keralite due to their superior quality and taste. The name
also refers to the large organization Kerala Co-operative Milk Marketing Federation
(KCMMF), which has units throughout Kerala‟s villages and towns. MILMA creates
jobs and wealth for a significant number of small farmers, including women and
landless people. The KCMMF was founded in 1980 and is headquartered in
Thiruvananthapuram. It was initially created up to ensure the successful
implementation of NDDB‟s diary programme, „Operation Flood‟.
MILMA is a co-operative society whose owners are farmers. Technology refers to

the use of scientific knowledge for practical reasons, and dairy is a place where milk
and milk products are handled. Dairy technology is defined as the branch of dairy
science concerned with the industrial processing of milk and the production of milk
products. The average daily milk procurement is 12.75 lakh liters from 3315 village
milk cooperative societies, 3 member unions covering 14 districts, and 9.77 lakh
milk producer members. The average daily milk sales are 12.98 lakh liters.

The company was established on 22nd April 2010. Earlier there was a Milma Dairy
in plant in Kumbazha, Pathanamthitta, which has been started in 2001, which was
later shifted to Mammoodu, Pathanamthitta. The new Milma has a processing
capacity of 62,421 LPD
Kerala Co-operatives Milk Marketing Federation (KCMMF) is a federation which

follows a cooperative structure and one of the most profitable cooperatives in Kerala
state. This federation has three regional milk unions via TRCMPU for
Thiruvananthapuram region, ERCMPU for Ernakulum region and MRCMPU for
Malabar region. At the apex level KCMMF functions from the headquarters at
Thiruvananthapuram. Thiruvananthapuram Regional Co-operative Milk Producer‟s
Union Ltd (TRCMPU) was registered in 1985, as a Regional Milk Union with 4
Southern Districts of Kerala i.e.; Thiruvananthapuram, Kollam, Alappuzha and
Pathanamthitta. At present it creates undivided demand in the market and stand as
natural monopoly. Keeping its mission of „farmer‟s prosperity through consumer‟s
satisfaction‟.

PERIOD OF INTERNSHIP
The internship study has a period of 10 days. Here the period is from December
2021 to March 2022.
1.1 OBJECTIVES OF THE INTERNSHIP
 To study the organization and department structures..

 To Study the various functions of each department.
 To work as an intern and to get familiarized in finance functions of the organization.
 To study the maintenance of records.
 To understand the preparation of budget.

1.2 INDUSTRY ANALYSIS
The dairy industry has a long history of environmental stewardship. Dairy farming
has been part of agriculture for thousands of years, but historically it was usually
done on a small scale mixed farms. Down to late seventeenth century cattle where
valued primarily for their beef producing qualities. From earliest times milk and
dairy products had occupied a prominent place in the diet of the people.
Milk is being a complete food had its own important in the day to day life being.
Milk cannot substantiate with another product. It is essential for the growth of
children and it’s an important food for all age group. In our country possess about 18
percentage of the total supply of milk in the world. There are companies in the
country to produce milk and milk products. Milk is being important from the
nutritional stand point since it contains nearly all the essential constituents required
in human diet in proper proportion. Milk supplies body building proteins, bone
forming mineral and health giving vitamins and essential amino acids in fairly large
quantities. Milk is essential part of balanced diet. Large parts of populations in India
are vegetarians and therefore the importance of milk is still great.
Milk is being a complete food had its own important in the day to day life being.
Milk can‟t substantiate with other product. It is essential for the growth of children
and it is also an important food for all age group. According to Nutrition Advisory
Committees of Indian Council of Medical Research “a balanced diet of Indian adult
should include ten ounce of milk per day.

The dairy industry has a long history of environmental stewardship. Dairy

farming has been part of agricultural for thousands of years, but historically it was
usually done on a small scale on mixed farms. Down to the late 17"century cattle
were valued primarily for their beef producing qualities. From earliest times milk
and dairy product had occupied a prominent place in the diet of the people.
Dairy farming is a class of agricultural or an animal husbandry, enterprise

for long term production of milk, usually from dairy cows, which may be either
processed on site or transported to the diary factory for processing and eventual
retail sale. Specialist scale dairy farming is only viable where either a large amount
of milk is required for production or more durable dairy products such as cheese or
their substantial market of people with cash to milk. But no cows of their own .The
milk processing sector internationally has experienced enormous changes over the
last few decades, with the movements from preponderance of small local dairies in
many parts of the world towards a limited number of giant international dairy farms.
The drivers of change include economic of scale, the increased size and
internationalization of consumers, increasing international dairy trade. In this
environment dairy companies will need to have a clear strategy, know what core
activities they should concentrate on, be as operationally efficient as possible, be
innovative and seek to strengthen relationship throughout the value chain.
The performance of the Indian dairy sector has been quite impressive.
Milk production in India increased after 1960‟s. The exports of dairy products
increased from Rs. 13.98 million in 1990- 91 to Rs.6766.82 million in 2005-06,
while imports increased from Rs.40.52 million to 345.66 million during the same
period. Hence, as the net trade balance of dairy products has changed from negative
to positive and the country is now a net exporter of dairy products.

The international federation, with its headquarters Brussels, was

established on 1903 and consists of 32 member countries throughout the world.
UNICEF has been motivating force for establishing a diary industry in many under
developed countries. Once of these were in India, where large modern processing
plants have been set up to process locally produced milk or to reconstitute from the
donated or purchased milk fat and powder. Domestic milk production has increased
in India and a part of pasteurized milk is provided free to children in the larger cities
through UNICEF.

INTERNATIONAL SCENARIO
In developed dairying countries, the year 1850 is seen as the dividing line between
farm and factory scale production. The rural areas were identified for milk
production whereas the urban centers were selected for the location of milk
processing plants and product manufacturing factories. These plants and factories
were rapidly expanded and modernized with improved machinery and equipment to
secure the various advantages of large scale production. Before 1900, nearly all the
milk was delivered as raw milk. Milk was first delivered in bottles on January 11.
1878 and that day is now remembered as Milk Day and is celebrated annually. Once
pasteurization was introduced, and it developed rapidly. Mechanical refrigeration
helped in the rapid development of the factory system of market milk distribution.
India is the largest producer of dairy products and milk followed by USA and
CHINA.
INDIAN SCENARIO
The dairy sector in India has shown remarkable development in the past decay and
India has now become one of the largest producers of milk and value added milk
products in the world. The dairy sector has developed through co-operatives in many
parts of the state.
More than 2445 million people economically active in agriculture all over the world,
probably 2/3 of them are wholly or partially depended on livestock farming. India is
endeavored with rich flora and fauna and continuous to vital avenue for employment
and income generation, especially in rural areas. India, which has 66% of
economically active population engaged in agriculture.
On considering the dairy industry in India has developed and developing as large
industry and as per the certification of the International Dairy Industry. India is the
world's largest milk producer and large number of industries is engaged in routine
commercial production of pasteurized milk and milk products.

STATE SCENARIO
Kerala Co-operative Milk Marketing Federation Limited (KCMMF)

Kerala Co-operative Milk Marketing Federation Limited (KCMMF) The Kerala Co-
operative Milk Marketing Federation (KCMMF) popularly called MILMA' was
established in April 1980 as part of operation flood second program with head office
at Thiruvananthapuram. It was started under the Indo Swiss project. The project was
launched in 1963 on the basis of a bilateral agreement executed between the Swiss
confederation and the Government of India. The project was made great strides in
the improvement of life stock farming in the state. One of them is the development
of Swiss brown across bread suited form the state conditions. The project is now
managed by the Kerala Live Stock Board. Its main motive was to implement the
operation flood program started by NDDB in Kerala.
KCMMF has played a major role in the development of dairying in the state. It has a
strong presence in the market. With an ever increasing demand for all the products
manufactured by KCMMF, it is necessary that efforts are taken to fill the gaps
arising out of inadequate supply. The KCMMF is a three tier system with the
primary milk co-operative Societies at the village level, regional milk producers
union at the middle level and an apex body at the state level. At present there
are three regional co-operative milk producers union operating. They are:
 Trivandrum Regional Co-operative Milk Producers Union Limited (TRCMPU)

 Ernakulum Regional Co-operative Milk Producers Union Limited (ERCMPU)
 Malabar Regional Co-operative Milk Producers Union Limited (MRCMPU)

STRUCTURE OF KCMMF
(STRUCTURE OF KCMMF FIG; 1)

TRCMPU
Thiruvananthapuram Regional Co-operative Milk Producers' Union Ltd (TRCMPU)

was established in 1985 as a Regional Milk Union having operations in four Kerala
districts: Thiruvananthapuram, Kollam, Alappuzha, and Pathanamthitta. TRCMPU
was formed by separating the area of operation of Kerala Milk Marketing
Federation, which was established in 1980 to implement the OF II project, into two
parts: ERCMPU, which covers four northern districts, and TRCMPU.

Units of TRCMPU
THIRUVANANTHAPURAM DAIRY
Thiruvananthapuram Dairy is located on the way to Kovalam 4 Km from
the city. The Dairy with a capacity to handle 1 lakh LPD was commissioned in
1992.The Dairy is selling milk in Thiruvananthapuram district except Chirayinkeezh
Thaluk. Thiruvananthapuram Dairy started to collect the entire milk through Bulk
Milk Coolers since November 2009.The capacity of the Dairy has been expanded to
2 lakh liters per day by 2001 now it is proposed to expand the capacity to 3 lakhs
liters per day. In addition a separated block for manufacture of products is proposed
to be constructed. Thiruvananthapuram is the first “ISO 2001” certified Dairy in the
state and all steps have been initiated to get HACCP for Thiruvananthapuram Dairy.
KOLLAM DAIRY
The Dairy was commissioned in 1986 with a capacity to handle 60,000 liters per day
and subsequently expanded to handle 1 lakh liters per day. Quantity processed and
supplied to Pathanamthitta unit – 45,000 LPD. At present 18,000 liters of milk is
collected through Bulk Milk Coolers and the remaining quantity in cans.
ALAPPUZHA DAIRY
In Alappuzha district, Dairy constructed under OF II with a capacity of 60,000 LPD
was later expanded to 1 lakh LPD. Milk procurement and marketing activities are
carried out by union. There is also a chilling plant with 30,000 liters capacity in
district.
PATHANAMTHITTA DAIRY
The Pathanamthitta Milma Dairy is constructed in an area of 10 acres of land at
Mammoodu near Adoor. The new Milma Dairy having a capacity of 60,000 LPD
was commissioned by the end of 2009. That facility was decommissioned when the
new Dairy plant was commissioned. Now the entire milk in the district is being
collected through Bulk Milk Coolers.
There are only 1 type of milk is produced by Milma, pasteurized homogenized toned

milk. And other products like ghee, curd, sambharam, Lassi, Panner, Milma plus and
Peda are produced here.Other Milma products like ice-cream, sip-up, butter mango
drink, milk powder, gulab jamun, Milma pudding cake, etc. are marketing here
through the „Milma Shop‟.

CURRENT SCENARIO
In spite of being the world's milk producer, India's milk processing industry is not
very large, only 12% of milk is delivered to dairies against the world average of
70%.
With expectation of a few units, the processing industry is largely involved either in
a liquid pasteurized milk of conversion of milk to milk powder and ghee. Most
domestic processor does not have the marketing knowledge to access the
international market. In India, majority of the milk market remains with the co-
operatives which were formed under operational flood all over India. The milk
Marketing Federation and its affiliated Districts Milk Unions control majority of the
market in the organized sector.
There are few other major private companies which are in the forefront of the dairy
product marketing such as Britannia, Nestle and Cadbury etc. New international
players such as Anchor, Fonterra etc. are expected to enter the Indian market within
a short period of time.
Indian dairy sector is said to witness a number of new alliances and partnerships.
Consolidation is already taking place in the market with Mother Dairy entering into
the joint ventures with the various state co-operative and Britannia in tie-up with
Fonterra etc. Overall the Indian industry is experiencing an upheaval with the new
products launches, repositioning of brands and entry of new players.

CHAPTER 2
ORGANISATIONL ANALYSIS

2. ORGANIZATIONAL ANALYSIS
Kerala Co-operative Milk Marketing Federation is an Indian diary company.

The company headquarter is in Kerala, India. The company brand name is
„MILMA‟. It is a three – tiered organization .Milma has been instrumental in
achieving the national goal of self-sufficiency in milk production in the state. The
company goal is “the socio-economic progress of the dairy farmer through
procuring, processing and marketing of the milk”.
Still the goal is receding as Kerala enjoys one of the highest ranges of per capita
milk consumption. KCMMF has achieved the distinction in its performance by close
association and bond with National Diary Development Board, Animal Husbandry
Department and Diary Development of the State and Kerala Livestock Development
Board.
Thiruvananthapuram Regional Co-operative Milk Producers‟ Union has

completed 25 years of its operation successfully. It has successfully faced odds like
excessive procurement in the initial stages and consequent losses, stagnation of sales
in early 1990‟s and of late shortage of milk and related problems and consequent
loss. With such diverse experience in the past and the talent pool it has, it can face
any adverse environmental problems successfully. In 1985, Union started operation
from the old Thiruvananthapuram Dairy handed over by KLD & MM Board which
was selling milk in Thiruvananthapuram and Kollam districts and having a capacity
of 40,000 LPD. The first Dairy plant under OF II project in TRCMPU area was
commissioned at Kollam with a capacity of 60,000 LPD in 1986. Subsequently
Chilling Plants with capacity of 10,000 LPD each were set up at Mannar and
Pathanamthitta. The company was established on 22nd April 2010. Earlier there was
a Milma Dairy in plant in Kumbazha, Pathanamthitta, which has been started in
2001, which was later shifted to Mammoodu, Pathanamthitta. The new Milma has a
processing capacity of 62,421 LPD.

2.1Nature of the Organization and its Business
The Milma is for the welfare of the farmers. The primary shareholders of the
organization are farmers. Since it‟s a government organization Milma mainly
focuses on the benefit of the farmers and the customer satisfaction. The motto of co-
operation is “of the people, by the people and for the people”. Milma is the
foundation of the “three tier system” followed by the organization. At the village
level Milma has the Village Milk Co-operative Societies which have the local milk
producers and its members. The Co-operative Social Responsibility (CSR) of the
company is that it provides 2-3 lakh loans to workers and also provides emergency
loans. There are many welfare activities for the workers like the scholarship for the
children, provide subsidies, transportation and compensations. These Village Co-
operative units at the Regional level and form Regional Co-operative Milk
Producer‟s Union. These unions are federate at the state level to form State
Federation namely Kerala Co-operative Milk Marketing Federation (KCMMF).
Thiruvananthapuram Regional Co-operative Milk Producers Union (TRCMPU)

covers the southern most districts of the state via Thiruvananthapuram, Kollam,
Alappuzha and Pathanamthitta. TRCMPU operates three modern dairies at:
 Thiruvananthapuram
 Kollam
 Pathanamthitta
TRCMPU also undertakes milk procurement and distribution at Alappuzha district.
Over the years, Milma has developed a long term health perspective about the
people of the state, who suffer from life style diseases including diabetes and
obesity, albeit economic prosperity. So, Milma has attuned its products to ensure
balance nutrition as well as reduced cost of healthcare and also launched new
beverages other than milk products. Founded on the basis of the great democratic
principle „of the people, by the people and for the people‟, the dominant concern of
Milma is to render true service to society while ensuring that it does not incur losses.

Company Profile
Type Statutory Corporation

Industry Dairy
Founded 1980;
Headquarter Thiruvananthapuram, Kerala, India Kerala
Products Milk products & Tetra Pak
Area served Kerala
Owner Ministry of Fisheries, Animal Husbandry and Daring,

Government of kerala
Website milma@ milma.com

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Organizational Structure
DAIRY UNIT MANAGER
H P P Q M E F
U & R U A N IN
M I O A R G A
A D L K I NC
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N G M N RAI
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(Organizational Structure FIG; 2)

The various departments;
 Human Resource Department

 Procurement and Inputs Department
 Production Department
 Quality Department
 Marketing Department
 Engineering Department
 Finance Department
Human Resource Department
Human Resource Department is concerned with the process such as recruitment,

selection and placement to the right type of employees to the right job. Permanent
employees are appointed through test and interview.
Temporary workers are appointed through employment exchange for a period
ranging from 6 to 12 months. When vacancies fall in the organization Milma
registers the requirement of employees to the concerned post in the employment
exchange. This registration is either through directly or sending letters to the offices.
There should be a personal interview which is conducted by a panel of judges
consisting of top officials like Manager, HR Manager and the Head of the
Department. The various functions offered are;
o Deals with all matters of employees
o Recruitment
o Selection
o Tests and interview
o Training
o Performance appraisal
o Grievance redressal

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Procurement and Inputs Department
Procurement of milk is the important function of this department

and is headed by the Assistant Manager of the dairy, purchase and store department.
The department ensures the timely availability of all other materials other than milk,
veterinary medicines and other inputs. This department mainly deals with the
procurement of milk from farmers in the village area through the regional societies.
The village farmers are also benefited in return to a great extend as they are given
reasonable prices for the milk they supply. Actually, Milma was started as so to save
the excess milk which was being wasted by the farmer. But with the introduction of
Milma, this excess milk started procuring it on a pricing rate based on fat and NFS
content present in milk.
The functions offered are;

o This department deals in procuring milk from the societies
o Calling tenders of vehicles
o Scheduling of routes
o Providing veterinary services
o Provide cattle field supply
Production Department
Production is a process of transforming inputs (raw materials) into outputs (finished

goods). The main activity of Production Department is the process of milk and other
products. The Production Department is headed by the Assistant Manager and is
assisted by Technical Officers, Technical Superintendents, Plant Operator and Plant
Attendor.
The various functions offered are;
o Involved with the processing of milk
o Procures raw materials
o Production of dairy products
Quality Department
Milma works with an aim of giving high quality products to its customers. The
Quality Control Department is headed by Quality Control Officer and is followed by
Dairy Chemist, Lab Technician and Lab Assistant. Milma products are tested at each
and every stage of production. This department is maintained mainly for checking
the quality of production and thus providing the customers with best products.
Milma collects milk on the APCOS pattern which has been originated from Amul
and has been replicated in Kerala through Milma. It is meant mainly for the benefit
is milk farmers. About 34,000 liters of milk is obtained daily at the Dairy. High
quality is maintained within the dairy but not touching the milk with hands expect at
the time when it is bought the societies.
The Pathanamthitta Dairy has received the MMPO (Milk and Milk Product Order)
standard and is on the verge of attaining ISO 9001 certificate. The milk should not
be acidic in any case. The Ph. of milk should always be in the range of 6.5 to 6.7.
The quality is monitored at all stages in terms of flavor, temperature, acidity etc. All
the physical and chemical properties are also considered. Various quick tests are
conducted like bacteriological test, ethylene blue reduction test, moisture test, RM
value analysis etc.
The various functions offered are;

o Taking samples at every stages of milk processing and of other milk products.
o Timely testing the quality of milk and milk products
o Maintains to keep the standard

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Marketing Department
: Marketing Department is headed by Assistant Manager. Marketing Department has
a key role to play for the survival and development of any organization; marketing is
the delivery of customer satisfaction at a profit. The main goal of marketing is to
attract new delivering satisfaction.
There functions are
 Sales of milk and other milk products.
 Distribution of the products.
 Collecting the payments from the agents.
 Doing promotional activities.
Pathanamthitta Dairy supplies milk and milk products to the whole place of
Pathanamthitta district, Chengannur in Alappuzha district and Pathanapuram in
Kollam district.
Engineering Department
This department is concerned with the maintenance and repair works of existing
machines of new machines. It also handles all the electric supplies. This department
is headed by Deputy Engineer and is followed by Technical Superintendent,
Technician, Store Attendor and Drivers.
There are separate rooms for electricity generators, boilers, refrigerators kept outside
the production plant connected through pipes and tanks. This department exercises
its function in section like:
 Service equipment
 Routine equipment
It includes maintenance and repairs of equipment needed in the production process
which includes boilers, refrigerators, air system, etc. It deals with all equipment‟s
used in the production department. It also deals with the pasteurization, milk chillers,

cream and separators. The routine requirement and the production process in the
plants are also undertaken by this department. Water arrangements, saturator
approval consent, DC Board, diesel,
furnace oil, license renewing is also done here.

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Finance Department
The finance department forms an integral part of any organization‟s growth story, be
it a startup or an established firm. While the term „finance department‟ often
resonates with money, this department covers a wider range of functions related to
achieving financial stability for the overall system. As the company grows, the role
of the finance department also evolves to become more significant and defined.
However, in an early stage company, the finance department aims to make quick
business decisions and streamline work processes in a cost-effective manner.
Finance is considered as the life blood of any business organization.
In the Accounts and Finance Department which is headed by Accounts Officer and
four employees in total. The main duty of the Finance Accounts Department is the
procurement of funds and budgeting, allocation and utilization of funds.
Double entry system of accounting includes both debit and credit aspects. All
transactions are computerized in this department are made up-to-date. Trail balance
and profit and loss account are prepared half yearly. A uniform system is maintained
as per the rules and accounting system set by NDDB. The Dairy has statutory
auditing which is done by the registrar of the co-operative society. For this purpose a
representative is appointed in the Dairy as their Concurrent Auditor. Budget is an
estimation of the revenue and expenses over a specified future period of time.
Budget is prepared every year by considering the procurement of a plant and
machinery, sales, increment in salaries, quality control and engineering works,
number of agencies and societies registered depreciation and other types of
expenses.
All payment and allocation of funds to other department are strictly on budget basis.
Each department is needed to be renewed should check the amount allocated to each
of these departments. The prepared budget is submitted to the Head Office and gets
approved. Budgets are prepared considering the annual turnover.

ACCOUNTING SYSTEM
Double entry system of accounting includes both debit and credit aspects. All
transactions are computerized in this department are made up-to-date. Trail balance
and profit and loss account are prepared half yearly. A uniform system is maintained
as per the rules and accounting system set by NDDB.
SOURCES OF FINANCE
Long Term: The source of long term finance is only term loans. CPD gets its
financial assistance from National Dairy Development Board (NDDB) through
KCMMF. There is a agreement between the federation and NDDB.
As per the agreement between them 70% of the loan amount should be repayable
and the remaining 30% subsidy.
Short Term: The source of short term fund is procured from the SBI at the
prevailing interest rate. It is mainly in terms of overdraft
AUDITING PROCESS
The Dairy has statutory auditing which is done by the registrar of the co-operative
society. For this purpose a representative is appointed in the Dairy as their
Concurrent Auditor Budget is an estimation of the revenue and expenses over a
specified future period of time.
Budget is prepared every year by considering the procurement of a plant and

machinery, sales, increment in salaries, quality control and engineering works,
number of agencies and societies registered depreciation and other types of
expenses. All payment and allocation of funds to other department are strictly on
budget basis. Each department is needed to be renewed should check the amount

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allocated to each of these departments. The prepared budget is submitted to the Head
Office and gets approved. Budgets are prepared considering the annual turnover.
TAX PAYMENTS
Every year a certain amount is paid as tax. Tax planning is done to avoid paying a
huge amount. Apart from this a certain amount of profit is paid to the bank as price
difference to the farmers. Out of the total revenue, about 90% is recovered from sale
of milk, 10% from other milk products.
MAINTENANCE OF BOOKS AND RECORDS
The following books of accounts are maintained in the department
 Cash Book
 Bank Book
 General Ledger
 Journals
 Direct Payment Register
 Bill Register
 Advance Register
Profit and loss account is prepared every month while balance sheet and
budget.
is prepared yearly. Every year auditing takes place. External auditing i.e. statutory
auditing is takes place in the Dairy. Register of co-operative societies come and
audit every year. This department is computerized and hence man power is limited.
Cash receipt is prepared through computerized system that is, by using MIS
(Management Information System).

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2.2 MISSION, VISION AND VALUES
Mission
“Farmers Prosperity through Customer Satisfaction” is the mission of the company.

The mission of this co-operative milk producers organization is the
elimination of middle men and organize institutions owned and managed by
producers themselves by employing professionals. Achieving economies of scale
and to ensure maximum returns to the milk producers, at the same time providing
wholesome milk at reasonable price to urban consumers. Ultimately the complex
network of cooperative organization should build String Bridge between masses of
rural producers and millions of urban consumers and achieve a socio- economic
revolution in the vicinity of the territory.
Vision
To constantly strive to provide valued consumers with the highest quality milk, milk
products and other products with the best standards of service by our passionate and
focused work forces using state of the art technology ensuring sustained growth and
simultaneously ensuring dairy farmer‟s delight by better realization of milk price
and offering needed service at his/her doorstep.
Values
o Professional Integrity

o Client Satisfaction
o Teamwork
2.3 Products / Services of the Company
 MILK
o Pasteurized standardized milk

Contains 4.5 per cent fat and 8.5 per cent non-fat solids. Ideal for the preparation of
payasam and sweets. Fat will settle at the top if Milk is kept still for some time since
the milk is not homogenized. Available in 500 ml sachets.
o Pasteurized homogenized toned milk
Contains 3.0 per cent fat and 8.5 per cent non-fat solids. Ideal for whitening
tea/coffee and for the preparation of solid curd. Since the milk is homogenized,
whitening capacity is more and less amount of milk will be sufficient for whitening
tea/coffee. The milk will not stick to vessels on heating and hence washing of used
vessels is easier. Fat will not settle at the top since the milk is homogenized.
Available in 500 ml sachets.
o Pasteurized toned milk
Contains 3.0 per cent fat and 8.5 per cent non-fat solids. Ideal for consumption by
children in the form of milk or in the form of brown beverages like Bournvita. Fat
will settle at the top if Milk is kept still for some time, Available in 500 ml sachets.

[Type text]
o Pasteurized double toned milk (smart milk)
Contains 1.5 per cent fat and 9.0 per cent non-fat solids. Ideal for elderly people
since fat content is low. Can also be used for whitening tea/coffee and for the
preparation of milk based drinks like fruit shakes. Fat will not settle at the top since
the milk is homogenized. Available in 500 ml sachets.
o Pasteurized toned milk special
Pasteurized Toned Milk in which Fat is 3.5% and SNF is 8.5%. The milk is also
homogenized to have smaller and uniform fat globules leading to no cream-line
formation, more full-bodied flavor & better mouth feel.
 CURD
Skimmed Milk Curd Contains 10 percent non-fat solid. It is Ideal for making
curries it‟s prepared under hygienic conditions by fully mechanized processes and
cannot be used as starter-curd for converting milk into curd. It‟s available in 500 ml
sachets.
o Set Curd
Manufactured by pasteurizing high quality toned milk and subsequent cooling and
addition of selective lactic starter cultures which includes pro-biotic strains.
Consumption of the Set Curd controls intestinal disorders and helps in the
assimilation of nutrients. Easily digestible product Recommended for young as well
as adults.
o Milma Special Curd
Make your dishes a relish with creamy and rich Milma curd
o Sambharam
Contains 4.5 per cent total solids and natural flavor extracts. Ideal as thirst quencher
during hot season. Prepared under hygienic conditions using fully mechanized

processes. Available in 200 ml sachets.
 GHEE
Contains 99.7 per cent milk fat. Manufactured by melting fresh cream under
hygienic conditions. Milma ghee has the ideal golden yellow color due to presence
of natural carotene in cow milk.
(In contrast, ghee manufactured from buffalo milk is white in color). No artificial
colors or flavors are added in Milma ghee. Natural aroma and flavor of ghee is
retained since ghee is produced directly from fresh cream instead of going in for
melting stored butter.
 MILMA BUTTER
Rich in vitamins A, D, E and K. Ideal for children and adults who lead an active life.
 MILMA PANEER
Panner is a fresh cheese frequently used in South Asian Cuisine. Moist, soft and
crumbly in texture, it is used to make delicacies such as Sandesh, Mutter paneer and
Rasgulla. It is a rich source of milk protein. Ideal for children and adults. Available
in 200gm, 500gm and 1 kg packs.

[Type text]
 CHEESE
Cheese slice Cheese is food product consisting of proteins and fat separated from
Milk. Sliced Cheese is available in 100g packing.  Spread Cheese spread is a
product containing fat and proteins of Milk.
Plain cheese is available in Pepper, Chilly, Garlic and Plain flavors. It is available in
200g packing.
 ICE CREAM & DESSERTS
Ice Cream Made from pure milk cream (unlike many private brands who vend
"Frozen desserts" made from cheap vegetable fats in the guise of Ice cream), this is a
real Ice cream made available in various flavors and packs. Produced by
hygienically in 1SO 9001-2008 and HACCP certified production facility. Milma Ice
cream is available in any range of lip-smacking flavors; vanilla, chocolate, mango,
Strawberry and fruit and nut. Our Ernakulam Union also produces and distributes
delicious Kulfi and cream rolls. The only ice cream in Kerala market which is
manufactured in dairy and hence most fresh Ice cream.
o Kulfi
This is an Ice cream in which cardamom & saffron flavors are used and filled in
molded container.  Cone Ice Cream This is an Ice cream which is filled in a dry
cone shaped pastry, made of a wafer which enables Ice cream to be held in the hand
and eaten without a bowl or spoon.
o Chocobar
This is a stick Ice cream having Chocolate as an outer layer and vanilla flavored Ice
cream inside.  Milma Sip-Up It is an Ice-lolly made available in two varieties-
Milk Sip-up and Water Sip-up. Both are packed in elongated and tubular pouches,
which can be broken by biting into it. The contents are then consumed by sipping at
the broken end Made by using pure milk, pasteurized water, and sugar with
permitted flavors especially during weather.
Gulab Jamun
Gulab Jamun is a desiccated milk product manufactured by mixing Milk Khoa,

Maida and skimmed Milk Powder, converting the mix into balls and then try by
frying the balls in ghee. The fried balls when soaked in sugar syrup turn out into
delicious gulab jamun, which is then packed m sterilized tins.
SWEETS & CHOCOLATES
Milma Peda A natural milk toffee manufactured by the heating and the removal of a
major portion of the water content of fresh milk and by the addition of sugar. No
color or preservatives are added.
Natural carotene in the milk gives the product its color. Ideal for children and as an
after-food sweet. Available in packs of 15 gms.  Krispy Chocolate Milma Krispy
Choco mass chocolate coated with water biscuit.
o Cookies
Milma Butter Cookies is a tasty new product introduced from the house of Milma. It
is free from preservatives and the product can be consumed by people of all age
groups. It is available in 70g packing‟s.
o Milma Pudding Cake
Cakes are healthy too, try a sliced piece of goodness with the blend of Carrot and dry
fruits
PAYASAM MIX
Milma Instant Palade Mix Palade Payasam is a traditional delicacy of Kerala. The
preparation of which is laborious professional skill. It is made by concentrating high
fat milk, rice granules and sugar. Milma has standardized its own large scale
production process for the instant Palade mix which is made available in dry powder
form. Milma Palade payasam is easily prepared from this mix by simply mixing the
Palade mix with hot milk and heating the same for 1O minutes. Available in 200gm

[Type text]
packs. No artificial colors or flavors are used in the product.
o Semiya Mix
Semiya Mix is tasty payasam mix consisting of Vermicelli, Sugar, Cashew Nut and
dry grapes. It is available in 250g packing.  Wheat Ada Mix The traditional Wheat
Ada Pradhaman can be prepared with this Milma Instant Wheat Ada Payasam within
20 minutes. The product is available in 250g packing.
BEVERAGES
o Milma Plus
Manufactured by addition of sugar and flavor to homogenized double toned milk.

The product is sterilized along with the glass container by heating to a high
temperature in specialized ovens after which the containers are stored in chilled
condition in outlets. Ideal for elderly people as well as children since it contains very
little fat and is far more nutritious than cola drinks. Available in 200 ml containers
and in strawberry flavors.
o Milma Refresh
In addition to milk drinks, Milma also has a mango drink in the market Refresh,
milma's mango drink is a favorite in the fruit drink sector.
o Packaged Drinking Water
Milma packaged drinking water is packed with extreme care to ensure safe, clean,
potable and pathogenic bacteria free water for direct human consumption
MILK POWDER
MiIma dairy whitener is a partially skimmed milk powder with added sugar. It is
ideal for preparation of various delicacies. It can also be used as a whitener for tea
and coffee.
 CATTLE FEED
o Milma Rich
Best quality cattle feed, which is produced under quality supervision of nutritionist
from premium quality ingredients after many qualities control and lab tests. Packed
in 50KG HDPE bags in pellet form.
o Milmamin
Balanced geographically formulated Mineral Mixture for Cattle - packed in 1Kg

packets. Milmamin helps improving the growth in young calves. Feeding of
Milmamin improves milk and fat in dairy cows. This Mineral supplement helps re
ducing inter calving period

[Type text]
.
SWOT ANALYSIS
SWOT analysis is a strategic planning method used to evaluate the

Strengths, Weakness, Opportunities and Threats involved in a project or in business
venture. It involves specifying the objective of the business venture or project and
identifying the internal and external factors that are favorable and unfavorable to
achieve that objective. The technique is credited to Albert Humphrey, who led a
convention at Stanford University in the 1960s and 1970s using data from Fortune
500 companies. A SWOT analysis may be incorporated into the strategic planning
model. Strategic Planning has been the subject of research.
Strengths: The characteristics of the business or project that give it an advantage

over others.
 Weakness: the characteristic of the business that place the business or project at a
disadvantage relative to others.
 Opportunities: The elements in the environment that the business or project could
exploit to its advantage.
 Threats: The elements in the environment that could cause trouble for the business or
project.
Identification of SWOTs is essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable,
given the SWOTs. If the objective is not attainable a different objective must be
selected and the process repeated. The SWOT analysis is often used in academia to
highlight and identify Strengths, Weakness, Opportunities and Threats. It is
particularly helpful in identifying areas for development.

1) Strengths
 Milma has 9th position in the list of top Dairy companies in India in the year 1980.
 Good brand name in the Kerala Dairy market.
 Eco-friendly plant.
 High quality product.
 Milma has and maintains a good brand name in the Kerala Dairy market.
 ISO 9001 certification.
 It meets the market demand properly.
 Strike free campus.
 Products are available at a reasonable price.
 There is great number of employee benefit scheme.
 There is good interaction and co-ordination between all the departments.
 Strict disciplinary actions and quick grievance redressal are taken.

[Type text]
2) Weaknesses
 Inadequate sales promotion campaigns.
 Inadequate sales outlet is rural areas.
 Absence of technology up graduation policy.
 There is no Research and Development department which is considered as an

importance one in any organization.
 Low advertisement and promotional activities for products other than milk.
3) Opportunities
 Scope of product diversification.
 More opportunities to create demand in rural areas.
 Good scope for capturing huge market share in the milk products category.
 Scope to process more milk from other states, thus increasing productivity.
 Increasing level of advertisements and related activities can lead it increase in sales
at a higher rate.
4) Threats
 The increasing intervention of milk powders of various companies in market is a
major threat for the organization.
 Faces milks shortage within state.
 The pricing mechanism is not flexible, which may lead to change in preference of
customers.
 Seasonal fluctuations in the availability of raw materials.
 New competitors may reduce market share.

CHAPTER 3
POSITIONING OF THE INTERN &HIS/HER ROLE

[Type text]
3.1 STRUCTURE OF FINANCE & ACCOUNTS DEPARTMENT
FINANCE DEPARTMENT
ASSISTANT MANAGER
JUNIOR SUPERINTENDENT
MANAGEMENT TRAINEE
(STRUCTURE OF FINANCE & ACCOUNTS DEPARTMENT FIG, 3)
FUNCTIONS
 Finance Management .
 Collection of revenue .
 Accounting .
 Budgeting .
 Auditing .

3( a) DUTIES AND RESPONSIBILITIES ASSIGNED TO THE

INTERN
As an intern in Milma I was able to explore more things in the corporate world.
Duties and Responsibilities assigned to me were:
 Cash management
 To refer the budget preparation and monitoring
 Verifying and filing payment vouchers
 Bank related works.
 To verify registers and files.
 Bill calculations

[Type text]
REPORTING STRUCTURE
There are various departments like Marketing, HR, Production, Finance, etc. and
each of the department heads and subordinates reporting to them. I was assigned
under Mr. Harikrishnan R, Assistant Manager of Finance and Accounts.
3 (b) BRIEF DETAILING ABOUT THE WHOLE INTERNSHIP

The Internship started on 28th December 2021, under the supervision of Mr.
Harikrishnan R, the Assistant Manager of finance and Administration. The
organization offered a friendly and cooperative environment. The internship has
certainly helped to learn how tasks are performed in an organization the institution
provided a platform in an organization the institution provided a platform to apply
the interns theoretically knowledge into practice. From the first day guide gave a
brief detailing about the organization and duties, responsibilities, importance and
functions of finance department and the company. The work assigned was from
10:00 am to 3:30 pm. From the beginning visited various departments, the duty
assigned and given to the intern was, verifying and filing payment vouchers, to
verify registers and files, bill calculations etc. The duties assigned to the intern were
completed properly .Proper guidance , suggestions , remark and advices were given
by the guide .

CHAPTER 4
DETAILS ABOUT THE INTERNSHIP
SREE NARAYANA INSTITUTE OF TECHNOLOGY, ADOOR

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LEARNING AND OBSERVATIONS
i. Pathanamthitta Dairy is the first Dairy in Kerala to get ISO 9001

certificate for manufacture.
ii. Since the Head Office has the prime authority, Pathanamthitta Dairy
can‟t take decisions independently.
iii. The major product of Pathanamthitta Dairy are Pasteurized
Homogenized Toned milk, ghee, curd, sambharam, peda, lassi and

milma plus
iv. Malanadu, Sabari, Royal and A-one are the major competitors of
Milma products.
v. The number of strikes and complaints are usually less in the daily
which proves that there is a good atmosphere for the worker to work
on and most of their needs are being allowed.
vi. “Farmers Prosperity through Customer Satisfaction” is the mission of
Milma. The statement is undoubtedly true as farmers are given much
importance by the organization.
vii. A clean and hygiene environment is maintained inside plant.
viii. A well-maintained security system is followed by the unit.

ix. An outlet named „Milma Shoppe‟ functions outside the unit where all
the Milma products are available and a high rate of sales occurs in
almost all days.
x. Majority of the employees in the organization are aged between 41-
50yrs.
xi. Increasing cost of procurement of raw milk and materials, inadequate

sales promotion campaigns, inadequate sales outlets in rural areas are
the weakness of Pathanamthitta Dairy.
xii. Uniforms and boots provided by the company to the employees is
satisfactory.
xiii. Most of the functions in the unit are done manually, which makes it
clear that the production process is not fully automated.
xiv. Company is properly auditing the books and accounts in every
financial year.
xv. Free flow of communication exists in the organization.
xvi. Training provided by the company is satisfactory.
xvii. Better coordination among different departments.

CHAPTER 5
FINDINGS, SUGGESTIONS & CONCLUSION
FINDINGS
 .Milma is the most popular brand in Kerala, which makes it clear that
it has a good image and brand loyalty as well.
 The major product of Pathanamthitta Dairy are Pasteurized

Homogenized Toned milk, ghee, curd, sambharam, peda, lassi and
milma plus
 “Farmers Prosperity through Customer Satisfaction” is the mission of

Milma. The statement is undoubtedly true as farmers are given much
importance by the organization.
 A clean and hygiene environment is maintained inside plant.
 A well-maintained security system is followed by the unit.
 An outlet named ‘Milma Shoppe’ functions outside the unit where all
the Milma products are available and a high rate of sales occurs in
almost all days..
 Increasing cost of procurement of raw milk and materials, inadequate

sales promotion campaigns, inadequate sales outlets in rural areas are
the weakness of Pathanamthitta Dairy.
 Uniforms and boots provided by the company to the employees are

satisfactory.
 Most of the functions in the unit are done manually, which makes it
clear that the production process is not fully automated.
 Company is properly auditing the books and accounts in every

financial year.
 Training provided by the company is satisfactory.
 Better coordination among different departments.

SUGGESTIONS
The following suggestions may help the firm to gain better results:
i. The firm should give more emphasis on advertisement and other

promotional techniques
which will in turn leads to increase in sales and production.
ii. Implementation of a computerized alert system may help to detect

problems quickly.
iii. The marketing strategies of the organization may be redesigned so

as to popularize ghee
and other milk products.
iv. Computerized performance appraisal system may be introduced in

the organization.
v. Should implement R & D Department for producing new

products and improve in certain
areas.
vi. Training should give to employees at regular interval.

CONCLUSION
The internship at Milma was done with an objective to understand

how an organization functions, where are its major departments and
functioning of these departments. The study is based on data and
information collected from primary as well as secondary sources. The
data collected are processed, analyzed, interpreted and valid
inferences were derived. The present study addresses to performance
of the Dairy industry in Kerala. The study is a comprehensive
approach to evaluate the performance of co-operative Dairies with the
help of physical, financial and marketing parameters. And the
organizational structure will show the different types of departments
that each has strengths and weakness.
It gives the detailed description about each products produced by the

organization i.e. the products contents, quality test, quantity of
packing and their rates. Also the detailed structure of each department
and roles and responsibilities of persons functioning in each
department. It also shows the Strength, Weakness, Opportunities and
Threats of the organization.
Milma is having goodness in the mind of people no other industries

have ever been as possible as Milma. Milma systematically set up a
strong network of marketing outlets with a dedicated marketing team
synchronizing the movement of milk. Today Milma products are
facing stiff competition from various other brands. Since Milma
maintain their quality of products, it is obvious that they have a bright
future.

REFERENCES
 www.nddb.coop
 www.milma.com
 www.milmatrcmpu.com
 www.slideshare.net
 www.kerp.milma.in
 www.coursehero.com

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KCMMF,PATHANAMTHITTA

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

MILMA is a co-operative society whose owners are farmers. Technology refers to

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

Kerala Co-operatives Milk Marketing Federation (KCMMF) is a federation which

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

1.1 OBJECTIVES OF THE INTERNSHIP

 To study the organization and department structures..

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

1.2 INDUSTRY ANALYSIS

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

The dairy industry has a long history of environmental stewardship. Dairy

Dairy farming is a class of agricultural or an animal husbandry, enterprise

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

The international federation, with its headquarters Brussels, was

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

Kerala Co-operative Milk Marketing Federation Limited (KCMMF)

 Trivandrum Regional Co-operative Milk Producers Union Limited (TRCMPU)

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

(STRUCTURE OF KCMMF FIG; 1)

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

Thiruvananthapuram Regional Co-operative Milk Producers' Union Ltd (TRCMPU)

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

Kerala Co-operative Milk Marketing Federation is an Indian diary company.

Thiruvananthapuram Regional Co-operative Milk Producers‟ Union has

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

2.1Nature of the Organization and its Business

Thiruvananthapuram Regional Co-operative Milk Producers Union (TRCMPU)

TRCMPU also undertakes milk procurement and distribution at Alappuzha district.

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

Type Statutory Corporation

Owner Ministry of Fisheries, Animal Husbandry and Daring,

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

DAIRY UNIT MANAGER

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

ELECTRICIANS OPERATOR MECHANICS

(Organizational Structure FIG; 2)

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR Page

The various departments;

 Human Resource Department

Human Resource Department

Human Resource Department is concerned with the process such as recruitment,

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

Procurement and Inputs Department

Procurement of milk is the important function of this department

The functions offered are;

Production is a process of transforming inputs (raw materials) into outputs (finished

o Production of dairy products

The various functions offered are;

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

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furnace oil, license renewing is also done here.

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR Page

Budget is prepared every year by considering the procurement of a plant and

SREE NARAYAN INSTITUTE OF TECHNOLOGY, ADOOR

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