Dept.

of MBA, HKBKCE

ORGANIZATION STUDY REPORT ON

MILMA DAIRY

BY
VISHNU CHANDRAN
(1HK20BA037)

SUBMITTED TO
VISVESVARYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF THE
DEGREE OF “MASTER OF BUSINESS ADMINISTRATION”
UNDER THE GUIDENCE OF:

INTERNAL GUIDE: EXTERNAL GUIDE:

Prof. SUPRIYA ROBERT Mr. RAJIVE ZACHARIAH
Asst. prof., Dairy Manager Alappuzha
Dept. of MBA Kerala

HKBKCE, Bengaluru.

HKBK COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT STUDIES
BENGALURU-560045

OCTOBER- 2021
Dept. of MBA, HKBKCE

DECLARATION

I VISHNU CHANDRAN, hear by declares that the organization study report titled

“A STUDY OF THE ORGANATION WITH REFERENCE TO MILMA” Harippad

Alappuzha Kerala was prepared by me for partial fulfilment of the requirements for the
award of the degree of MBA (MASTER OF BUSINESS ASMINISTARTION) under
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI.

I declare that this organization study report was done by me under the guidance of project
internal guide Prof. SUPRIYA ROBERT, Asst. Prof., HOD, MBA Department, HKBK
college of engineering and external guide Mr. Rajive Zachariah. The organization study
report was prepared based on 4-weeks of organizational study as per university
requirement.

I also hear by declare that this report is based on the original study undertaken by me and has
not been submitted for the award of any degree/diploma from any other
University/Institution.

Place : Bangalore

Date : Signature of the student

Dept. of MBA, HKBKCE

ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to the founder and chairman of
HKBK College of engineering, Sri C.M IBRAHIM, former union minister, and also to the
director of the college Mr. C.M FAIZ MOHAMMED for providing me with facilities to do
my Organizational study.

I am highly indebted to the principal prof. Hussain Ahamed for his continuous support and
guidance in completing my organization study.

I am thankful to DR. JERRY JOHN , Asst. prof., HOD, Department of management

studies, HKBK college of engineering, for her valuable advice and cooperation for carrying
out the Organization study.

I owe my deep gratitude to my faculty and internal project guide Prof. SUPRIYA
ROBERT, Department of management studies for her guidance till the completion of the
Organization study.

I respect and thank Mr. . Rajive Zachariah, Finance and Accounting executive,

Milma Diary for providing me an opportunity to do organization study in the Milma

Alappuzha and giving all support and guidance, which made me complete the organization
study duly. I am extremely thankful to him for providing such a nice support and guidance,
although he had busy schedule managing the corporate affairs.

I am thankful to and fortunate enough to get constant encouragement, support and guidance
from all MBA faculties which helped me in successfully completing the organization study.

At least but not the least I would to thank my family and friends for their continuous help and
support.

Place : Bangalore Vishnu Chandran

 Dept. of MBA, HKBKCE

TABLE OF CONTENTS

S.NO TOPIC PAGE

NO.
1 CHAPTER-1

Introduction about industry 02-15

2 CHAPTER-2
Organization profile:
12-13
13-17
a) Background & Nature of the business.
17-20
b) Vision – Mission, Quality policy.
20
c) Product/Service profile.

3 CHAPTER-3
McKinsey’s 7s frame work and Porters five force model with special 25-35
reference to organization under study.

4 CHAPTER-4
SWOT analysis. 35-39

5 CHAPTER-5

Analysis of Financial statement. 40-49

6 CHAPTER-6

Learning experience. 50-51

Dept. of MBA, HKBKCE

7 BIBLIOGRAPHY
52
Annexure
CHAPTER-1
INTRODUCTION ABOUT INDUSTRY

CHAPTER-1

INTRODUCTION TO INDUSTRY

1
An industry is a group of companies that are related based on their primary business
activities. In modern economies, there are dozens of industry classifications. Industry
classifications are typically grouped into larger categories called sectors.Individual
companies are generally classified into an industry based on their largest sources of revenue.
For example, while an automobile manufacturer might have a financing division that
contributes 10% to the firm's overall revenue, the company would be classified in the
automaker industry by most classification systems. Similar businesses are grouped into
industries based on the primary product produced or sold. This effectively creates industry
groups, which can then be used to isolate businesses from those who participate in different
activities. Investors and economists often study industries to better understand the factors and
limitations of corporate profit growth. Companies operating in the same industry can also be
compared to each other to evaluate the relative attractiveness of a company within that
industry.

1.2 Type of industries

Mainly industries are classified into two types service industry and
manufacturing industry.

1.2.1 Service industry

The Sector intangible goods, more precisely services instead of goods, and according to
the U.s census Bureau , it comprises various service industries including warehousing and
transportation services; information services; securities and other investment
services; professional services; waste management; health care and social assistance; and
arts, entertainment, and recreation. Countries with economies centered around the service
sector are considered more advanced than industrial or agricultural economies. The service
sector, also known as the tertiary sector, is the third tier in the three sector economy. Instead
of the product production, this sector produces services maintenance and repairs, training, or
consulting. Examples of service sector jobs include housekeeping, tours, nursing, and
teaching. By contrast, individuals employed in the industrial or manufacturing sectors
produce Tangible goods, such as cars, clothes, or equipment.

2
1.2.2 Manufacturing industry

The manufacturing industries are industries transforming goods, that is, mainly manufacturing
industries in their own right, but they also concern the repair and installation of industrial
equipment and subcontracting operations for third parties. ... Manufacture of food products.
Manufacture of beverages.

 Manufacture of food products

3
 Manufacture of beverages
 Manufacture of tobacco products
 Manufacture of textiles
 Manufacture of wearing apparel
 Manufacture of leather and related products
 Manufacture of wood and of products of wood and cork, except furniture; manufacture
of articles of straw and plaiting materials
 Manufacture of paper and paper products
 Printing and reproduction of recorded media
 Manufacture of coke and refined petroleum products
 Manufacture of chemicals and chemical products
 Manufacture of basic pharmaceutical products and pharmaceutical preparations
 Manufacture of rubber and plastic products
 Manufacture of other non-metallic mineral products
 Manufacture of basic metals
 Manufacture of fabricated metal products, except machinery and equipment
 Manufacture of computer, electronic and optical products
 Manufacture of electrical equipment
 Manufacture of machinery and equipment n.e.c.
 Manufacture of motor vehicles, trailers and semi-trailers
 Manufacture of other transport equipment
 Manufacture of furniture
 Other manufacturing
 Repair and installation of machinery and equipment.

4
INTRODUCTION ABOUT THE ORGANISATION STUDY

1.1 Introduction about the organisation study:

The Organisation study titled “A STUDY OF ORGANIZATION WITH REFERENC

MILMA,”

Alappuzha, Kerala is a report for partial fulfilment for the award of MBA degree under

VISVESVARYA TECHNOLOGICAL UNIVERSITY, Belagavi.

The duration of the internship is four weeks from 30-09-2021 to 30-10-2021. The objective of
the internship is to study the organization.

The Mckinsey 7S framework, the management model was used to study the organization.
This study focused on the structure, strategies, and systems of a company to understand the
influence of the management. The study was made on less tangible viz. shared values, skills,

5
style and staff, which is more influenced by culture. The study focused on the alignment
issues of 7S and its contribution to organization success.

Using SWOT analysis, the technique is used to understand the organization’s strength,
weakness which relates to internal factors. It also identifies opportunities and threats which is
external factors that have greater impact on organization performance. The internal factors
and external factors determine company’s current and future performance.

The industry profile highlights on dominance role of industry and its impact on the company
while organization profile highlights on industry’s benchmark activities for organization
success.

The experimental learning is about acquired knowledge and skill through internship. The
learning experience is focused on one’s learning. These experience results in positive
influence on one’s professionalism and career.

1.2 Industry profile:

Organizational study is the systematic and careful application of knowledge about how people
– as individuals and as groups – act within organization. An organizational study was
conducted in Milma, All Dairy to know the real functioning of an organization.Organizing
refers to the process of bringing together physical, financial and human resources and
establishing productive relations among them for the achievement of specific goals. It is
concerned with building up a stable framework or structure of various interrelated parts of an
enterprise, each part having its own function and being centrally regulated. The aimof
organizing is to enable people to relate to each other and to work together for a common
purpose. The organized group of people in a collective sense is known as organization. An
organization structure shows classification of the departments and its employee hierarchy.
This also fixes their authority and type of communication with superior, subordinates and
peers. An organization structure also shows the span of control. It can be narrow or a wide
one.Kerala Co-operative Milk Marketing Federation (KCMMF) popularly called MILMA
was established in April 1980 with its Head Office at Trivandrum for the successful
implementation of the Operation Flood. KCMMF is the top management controlling all the
milk dairies namely TRCMPU (Trivandrum Regional Co-operative Milk Producers Union),
ERCMU (Ernakulum Regional Co-operative Milk Producers Union) and MRCMPU
(Malabar Regional Co-operative Milk Producers Union). The company was established on

6
22nd April 2010. Earlier there was a Milma dairy plant in Kumbazha, Pathanamthitta, which
had been started in 2001, but it was shifted to Mammodu in Pathanamthitta and started its
operations. The new Milma has a processing capacity of 60,000 liters per day Milk is very
essential for our daily life. Most people include milk in their diet as it is regarded as the
complete food. Milk contains all the essential nutrients that are needed for humans. In the
dairy market of Kerala, the products of Milma are accepted and are considered to be good
quality by the consumers they are successful in capturing 45% of the market share.

1.3 Market size:

MILK INDUSTRY

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
on mixed farms. Down to the late 17th century cattle were valued primarily for their milk
than their beef producing qualities. From earliest times, milk and dairy products had occupied
a prominent place in the diet of the people.Dairy Fanning is a class of agricultural, or an
animal husbandry, enterprise for long term production of milk, usually from dairy cows,
which may be processed on-site or transported to a dairy 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 of more durable dairy products such as cheese, or there is a
substantial market of people with cash to buy milk, but no cows of their own. Centralize dairy
farming as we understand it primarily developed around villages and cities. Near the town,
formers could make some extra money on the side by having additional animals and selling
the milk in town. The dairy farmers would fill barrels with milk in the morning and bring it
the mark on a wagon.The technical challenges facing world dairying over the next 25 years
are different from, but not any more difficult than those experienced over the last century.
Many of the new technical demands will continued to be imposed by consumer expectation of
a good eating experience of healthy food without risk. Particular challenges arise from the
intersection of genomic studies with nutrition.Technical challenges will also arise from the
evolution of technologies, both existing and new, to make maximum use of the minor
components of milk, and to improve efficiency in the manufacture of traditional dairy
products. Increasing use will be made of quantitative risk-analysis tools. Dwindling supplies
of fresh and portable water will be specific challenge in many parts of the world. The

7
challenges will be different in each region, with nations with emerging dairy industries
requiring different and indigenous solutions.

Milk production

• India's milk production increased from 21.2 million MT in 1998 to 88.1 million MT in
2003 -2004.
• India is the largest producer of the milk in the world (replacing USA)

• Per capita availability of milk presently is 231 gram/day, up from 112 gram/day is
1968-1969
• India's 3.8 recent annual growth of milk production surpasses the 2 percentage growth
in
• population; the net increase in availability in around 2% in around per year

• State co-operatives and privately owned Indian company dominate the liquid milk
sector

• India has around 70000 village dairy co-operatives, 22 cooperatives dairy federations
at state
• level and 170 milk producer union at district level

The Milk and milk based industries play a very important role in the world.

Internationalization remains a key focus for almost all of the world’s leading dairy farms. All
the world’s largest dairy farms operate in more than one country and some of them are truly
international with the activities in every part of the world. The availability and distribution of
milk and milk products, in the modern world is blend of the centuries old knowledge of
traditional milk products with the application of modern science and technology. Dairy is a
place where handling of milk and milk products done a dairy has long. The food industry in
India has been showing a steady growth rate over the last several years. The main
phenomenon is the large disposable incomes.

The foodsectors have been facing a marked change in the consumption pattern especially in
terms of food. Increasing the income always accompanied by change in the food basket says
an ICRA report which analysis food expenditure patterns over the last three decades in India.
The report observed that the proportionate expenditure on cereals, pulses, edible oils, salt and

8
spices declines as the house hold climb the expenditure classes in urban India while the
opposite happens in the case of milk products, meat, egg, fish and beverages. Among the
processed foodproducts, the milk product needs special mention. Retail shelves now offer
multiple choices in the processed cheese segment such as Le Bon of Dabon International
launching cow, Britannia and Amul. India is in fact one of the largest milk producers in the
world. In 2004 world milk production was estimated to be 14394 million ton and India
contributes about 15% to this.Today India is the “oyster of the global dairy”. It offers
opportunity to the entrepreneur’s worldwide who wishes to capitalize one of the world’s
largest and fastest growing markets for milk and milk products. The Indian dairy industry is
rapidly growing, trying to pace with the galloping process around the world.

2.1.1 WORLD SCENARIO

The International Dairy Federation, with its headquarters in Brussels was established in 1903
and consists of 32 member countries throughout the world. UNICEF has been the motivating
force for establishing a dairy industry in many under developed countries. One of these was
India, where large processing plants have been set up to process locally produced milk or to
reconstitute milk from donated or purchased Milk Fat and powder. Domestic milk production
has increased in India and a part of this pasteurized milk is provided free to children in the
larger cities through UNICEF.The first cooperative artificial breeding association was
organized in Denmark in 1936, there are now many such association which helps the dairy
industries. After 1950, dairy industries faced a wide range of development throughout the
world. Commercial dairy farming using automated milking equipment produce the vast
majority of milk in most developed countries. The international dairy trade is dominated by
four players - New Zealand, Australia and USA - which together account for 85% of all
exports.

In USA 70% of the dairy industry is co-operative dairy programmes are subject to more
Government participation or regulation than most other domestic agricultural industries in the
USA. There are also Federal Milk Marketing Orders and movement barriers in the USA for
“orderly marketing control, which is associated with stabilising fluid milk prices, providing
secure and dependable markets for individual dairy farmers, primarily for the fluid market
animproving the balance of market power between farmers and handlers. In the United
Kingdom, all the milk produced by farmers is procured by the cooperatives. Private dairies
are required to buy their milk requirement from cooperatives. New Zealand has no private
sector dairy plants. 90% of dairies in the erstwhile West Germany and 100% in Denmark,

9
Netherlands and Sweden are in the cooperative sector.The below table shows world cow's
milk production in 2013 stood at 956 million tonnes, with the top ten producing countries
accounting for 56.6% of production. The USA is the largest cow's milk producer in the world
accounting for 14.6% of world production, producing nearly 91 million tonnes in 2013, an
increase of 3.8% when compared to 2012. India is the second largest cow's milk producer,
accounting for 8.7% of world production and producing 60 million tonnes in 2013. The UK is
the 10th largest producer in the world producing nearly 14 million tonnes in 2013 and
accounting for 2.2% of world cow's milk production.In 2011, the leading 24 dairy companies
in the world have generated a turnover of more 3 billion US dollars. The 24 leaders of dairy
industry come from 14 countries in 4 continents. Most dairy companies experienced growth
in 2011 due to the strong increase in dairy product prices. Mergers and acquisitions made
companies to grow faster and become the market leaders.

2.1.2 INDIAN SCENARIO

Indian Dairy Sector has come a long way from the post-independence era of acute milk
Shortage and depended on foreign aid in the form of milk powder to meet the growing milk
Demanded. India’s milk production in 1950-51 was as low as million tonnes. Today India has
Emerged as the highest milk producer in the entire globe. India is well known as the ‘Oyster’
of The global dairy industry, with opportunities galore for the entrepreneurs globally. It might
be Dream for any nation in the world to capitalize on the largest and fastest growing milk and
milk Products market. The dairy industry in India has been witnessing rapid growth with
Liberalization. The economy provides good opportunities for MNCs and foreign investors to
Release the full potential of this industry. The main objective of the Indian Dairy Industry is
to Manage the national resources in a manner to enhance milk production and upgrade milk
Processing using innovative technologies.India ranks first in the world in milk production,
which has gone up from 53.9 million Tonnes in 1990- 1991 to 140.6 million tonnes in 201314
on a normal monsoon, increased Demand for dairy products and rising consumer income.
The per capita availability of milk has Also increased from 176 grams per day in 1990’s to
320 grams per day in 2013-14. This is Comparable with the world per capita availability of
milk at 291.76 grams per day for 2013. This Represents sustained growth in the availability
of milk and milk products for the growing Population of the country, apart from being an
important secondary source of income for rural Families. Of the milk produced, 40 per cent is
used or consumed on-farm, and 60 per cent is sold. Industry sources report that of milk sold

10
70 per cent goes through the unorganised sector and Only 30 per cent via the organised
sector.

ANAND PATTERN

Amul, an Indian dairy cooperative, was started in Anand in the state of Gujarat, India. It Was
formed in 1946, is a dairy cooperative in India. It is a brand managed by a cooperative body,
The Gujarat Cooperative Milk Federation Ltd. (GCMMF), which is today jointly owns 3.03
Million milk producers in Gujarat. Amul’s success had huge impact in the creation of same
Structure of milk producers in other districts of Gujarat initially.
Amul’s experience was driving Force in project planning and execution. The ‘Anand Pattern’
was followed in Kaira district, Mehsana, Sabarkantha, Banaskantha, Baroda and Surat
districts. As even before the setting up of The Dairy Board of India, farmers and their leaders
carried out various tests of the hypotheses That explained Amul’s success. All through these
districts, milk producers and their leaders Experience significant commonalties and found
easy, effortless ways to adapt Amul’s game plan To their respective areas.The Anand Pattern
is an integrated cooperative structure that procures, processes and Markets produce.
Supported by professional management, produces decide their own business Policies, adopt
modern production and marketing techniques and marketing techniques and Receive services
that they can individually neither afford nor manage. The Anand Pattern was succeeds
because it involves people in their own development through cooperatives where
professionals are accountable to leader elected by farmers. Anand pattern cooperative have
progressively linked producers directly with consumers.

2.1.4OPERATION FLOOD

Operation Flood is considered as one of the world’s largest rural development Programmes. It
was launched in 1970 by NDDB with an objective to create a nationwide milk Gird. This lead
to a revolution in Indian milk industry and is called as The White Revolution of India which
made India one of the largest producers of milk and milk products. Now the national Milk

11
gird links milk producers throughout India with consumers in over 700 towns and cities,
Reducing seasonal and regional price variation while ensuring that the producer gets fair
market Prices in a transparent manner on a regular basis.The bedrock of Operation Flood has
been village milk producers’ cooperatives, which Procure milk and provide inputs and
services, making modern management and technology
Available to members. Operation flood’s objectives included:

• Increase milk production (“a flood of milk”)

• Augment rural incomes

• Reasonable prices for consumers

Operation Flood was implemented in three phase;

PHASE I: The starting year of operation flood, 1970 to 1980 is considered was phase 1. Phase
I was financed by the sale of skimmed milk powder and butter oil gifted by European Union
then EEC through the World Food Programme. NDDB planned the programmed and
Negotiated the details of EEC assistance. During the first phase, Operation Flood linked 18 of
India’s premier milk sheds with consumer in India’s four major metropolitan cities:Delhi,
Mumbai, Kolkata and Chennai.
PHASE II: Operation Flood Phase II (1981–1985) increased the milk sheds from 18 to 136,

290 urban markets expanded the outlets for milk. By the end of 1985, self-sustaining system
Of 43,000 village cooperatives with 425 million producers had become a reality. Domestic
milk Powder production increased from 22.000 tons in the project year t0 140,000 tons by
1989, all of the increase coming from dairies set up under operation Flood. In this way EEC
gifts and World Bank loan helped to promote self-reliance. During the Phase II direct
marketing of milk by producer’s cooperatives increased by several million litres a day.
PHASE III: Operation Flood Phase III (1985-1996) enabled dairy cooperative to expand and
strengthen the infrastructure required to produce and market increasing volumes of milk.
Veterinary first-aid health care services, feed and artificial insemination services for
cooperative members were extended, along with intensified member education.

2.2 KERALA SCENARIO

12
Dairy cooperative were also developed in Kerala as a part of Operation Flood. Dairy
Cooperative have three tier structures in Kerala with primary milk supply society at the base,
Milk union supply union at the district level and a state level federation. This cooperative
society Follows the Anand Pattern of dairy development scheme.Kerala Co-operative Milk

Year Production (tones) Per Capita Availability

(grams/day)

2009-2010 107934 252

2010-2011 112183 258

2011-2012 116425 273

2012-13 121848 281

2013-14 127904 290

2014-15 132430 299

2015-16 132430 307

Marketing Federation (KCMMF) or Milma started its Operation in 1980 with its head office
at Trivandrum. It was started under the Indo-Swiss project. The project was launched in 1963
on the basis of a bilateral agreement executed between the Swiss Confederation and the
Government of India. The project has made great strides in the Improvement of livestock
farming in the state. One of them is the development of Swiss Brown, A cross breed suited
for the state’s conditions. The project is now managed by the Kerala Livestock Development
and Milk Marketing Board. It main motive was to implement the Operation Flood programme
started by the National Dairy Development Board (NDDB) in Kerala.It is a threetiered
organization. At the grassroots level MILMA has 3059 Anand model Primary milk
cooperative societies as on 31.03.2012 with 8.6 lakh local milk producing farmers As
members. These primary societies are grouped under three Regional Co-operative Milk
Producers’ Unions viz. TRCMPU for Trivandrum region, ERCMPU for Ernakulum region
and MRCMPU for Malabar region. At the apex level KCMMF functions from the
headquarters at Trivandrum. From the different units managed directly by KCMMF and the
various units under Regional unions MILMA produces and distributes pasteurized Vitamin–
A enriched milk and Various milk-based products as well as mango drink throughout the
state.

13
MILMA has been Instrumental in achieving the national goal of self-sufficiency in milk
production in the state. Still the goal is receding as Kerala enjoys one of the highest ranges of
per capita milk Consumption. KCMMF is totally content in the realization of this vision
which was set before it. KCMMF has achieved the distinction in its performance by close
association and bond with National Dairy Development Board, Animal Husbandry
Department and Dairy Development Department of the State and Kerala Livestock
Development Board.The milk share of dairy industry of Kerala reveals that MILMA has more
market share of Milk as compared to others. The Figure below reveals that MILMA
contributes 45% of the Market share, KCA having 9%, A1 milk having 7% and other dairy
companies having 39% of The total share of milk in Kerala.Kerala will have to take urgent
steps to arrest the decline in cattle population and enhanceproductivity if milk production is to
match the projected demand in the near future. Based on the projected population and
consumption, the annual milk production in Kerala would have to be increased from 27.91
lakh tonnes to 3.58 million tonnes over the next 10 years. If there is a level playing field for
the private, cooperative and the government sectors then the milk production could be
doubled in 10 years.KCMMF has played a major role in the development of dairy industry in
the state. It has a strong presence in the market. With an ever increasing demand for all the
products manufacture by KCMMF, it is necessary that efforts are taken to fill the gaps arising
out of inadequate supply.

14
CHAPTER -2
ORGANIZATION PROFILE

15
 CHAPTER – 2

ORGANIZATION PROFILE

Company Name:Milma

Address : Kacheri Jct Road, Danapadi, Haripad,

Alappuzha - 690514

Introduction:

16
Brand household name, ‘MILMA’ stands for milk and a whole variety of milk products
which enjoy the confidence of each and every Keralite, for their unmatched quality and
standard. The name also signifies the vast organization Kerala Co-operative Milk Marketing
Federation (KCMMF) with it units of procurement, processing and sale spread over all the
villages and towns of the state, giving employment and prosperity to a large number of small
and marginal farmers including women and the landless, processing employees and sellers.
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 balanced 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

The MILMA Represents

• 2678 Primary milk co-operative societies now functioning as on 31.03.2010

• 8.31 lakhs farmer members

• Three Regional Co-operative Milk Producer’s Union

• Thirteen Dairies capable of handling 12 lakhs liters of milk per day

• Ten Milk Chilling Centers

• Two Cattle Feed plants with cumulative capacity of 600MT per day

• One Milk Powder Plant of 10MT per day capacity

• A well- established Training Centre

• 5,200 retail outlets

• Over 32,000 people working either directly or indirectly for the functioning
of MILMA.

17
• Apart from these MILMA serve millions of consumers day-in and day-out.

MISSION

“Farmer’s prosperity through consumer satisfaction” is the mission of MILMA.

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 focus using state of the art technology ensuring sustained growth and simultaneously
ensuring diary farmer’s delight by better realization of milk price and offering needed service
at his/her doorstep.

OBJECTIVES OF MILMA

The objectives of MILMA are given below:

1. Channelize surplus milk from the rural areas to urban deficit areas to maximize the returns
to the producer and provide quality milk and milk products to the consumers.
2. Carryout activities for promoting Production, Procurement, Processing and Marketing of
milk and milk products for economic development of the farmer community.
3. Build up a viable dairy industry in the state.

4. Provide constant market and stable price to the dairy farmers.

MOTTO

The Motto of Milma is “Your health is our concern”

STRATEGY (network)

The Motto of Co-operation, “of the people, by the people and for the people” is the
foundation of the “three tier system” followed by the organization. At the village level
MILMA have the Village Milk Co-operative Societies which have the local milk producers as
its members. These Village Co-operative units at the Regional level and from Regional Co-
operative Milk Producer’s Union. These Unions are federated at the state level to from
State Federation namely Kerala Co-operative Milk Marketing Federation (KCMMF)

18
.Associates of MILMA

MILMA is in constant touch with other organizations in this sector. It is only through
tKCMMActive exchange that MILMA grew from a small dairy co-operative to the position it
holds in Kerala today. Their chief associates are:-

A.National Dairy Development Board

NDDB, under Dr. V Kurien’s guidance set up KCMMF in 1980. Ever since then, there has
Been a very close co-operation between NDDB and the Federation. NDDB are the originators
Of the Operation Flood Program and have been our funding agent for the Operation Flood
Projects in Kerala.

B.Amul

The Dairy Co-operatives of Gujarat have been the inspiration for the development of such a
Vast network of dairy co-operatives in Kerala. Among the co-operatives in Gujarat, the
Kerala District Co-operative Milk Producer’s Unions (Amul) is the first in this sector. Our
Co-Operatives are called “Anand Pattern Co-operative Societies” following the illustrious
lineage Of “Amul”.

C. Government of Kerala

The Phenomenal success of the Dairy Co-operatives in Kerala could not have been achieved,
Without the foundation of animal husbandry activities, led by the Animal Husbandry
Department, Dairy Development Department and Kerala Livestock Development Board, of
the Government of Kerala.

3.2 Regional Milk Co-operative Unions

19
In order to affect the efficiency and expedite the procurement and marketing, KCMMF has
Three Regional Co-operative Milk Producers Unions in Kerala.These three unions cover the
northern, central and region of the state respectively. These Divisions have helped to
decentralize and democratize the functioning of the organisation.Regional milk union of

“MILMA” functions of democratic lines. Membership to the village Level milk

farmers, co-operative societies and right to vote are strictly controlled by
welldefined rules. These rules are based on the quantity and continuity of the
milk contributed by The farmers to the society.The managing board of all three
unions comprises elected representative of the milk farmers And the board of
KCMMF comprises of three nominees from each union. The chairman of
KCMMF is elected from among the elected representatives nominated to the
managing board.

Product Profile

20
 1. Pasteurized double toned milk

Double toned milk contains 1.5 percent fat and 9.0 percent nonfat 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

2. Pasteurized homogenized toned milk

21
 Contains 3 percent fat and 8.5 percent 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
3. GHEE

Contains 99.7 percent 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 flavours 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. Ghee is available in 50ml, 100ml, 200ml, 500ml jars and 2 ltr, 5ltr tins.

CURD

22
Contain 10 percent non-fat solids. Ideal for making curries. Prepared under hygienic
conditions by fully mechanized process .Cannot be used as starter-curd for converting milk
into curd.
Available in 500 ml sachets with a market price ₹ 27.Set curd is available in 80gm, 200gm,
and 400gm cups.

SAMBHARAM

Sambharam (Butter milk) which is having 4.5% total solids is a favourite beverage in
Kerala. Milma Sambharam is the only product of its kind in the market and it is very popular
throughout the State. It comes in 200 ml sachets. It is a seasonal product, mainly for summer
season. In future Milma is planning to launch 500 ml sachet of Sambharam. The price of
200ml Milma Sambharam is Rs.10/-.

1. PANEER

23
Paneer also called chenna is a milk product made by coagulating boiled hot whole milk with
citric or lactic acid and subsequent drainage of whey. It is fresh source milk protein and has
good flavour and smooth texture. It is used in preparation of various dishes. Paneer are
available in 100gm, 200gm and 1kg packages.

MILMA LASSI

Lassi is a popular yogurt-based drink from the Indian Subcontinent. Lassi is prepared by
blending yogurt with water and adding sugar and other flavours to taste. Lassi is
available in mango and pineapple flavours. It is available in 200ml bottle which cost
₹25.
MILMA PLUS

24
Milma plus is a nutritious drink prepared using milk. This is sterilized flavoured milk which
is available in chocolate, strawberry, pista, badam flavours. Milma plus is available in
200ml bottle cost ₹22.

25
 CHAPTER -3
McKINSEY 7s FRAMEWORK

&

PORTERS FIVE FORCE MODEL

26
 CHAPTER-3

MCKINSEY 7S FRAMEWORK

&

PORTERS FIVE FORCE MODEL

McKinsey’s 7S framework with special reference to organization under study.

The McKinsey 7S framework is a management model developed by well-known business

consultants ROBERT K. WATERMAN, JR. & TOM PETERS (Who also developed the
MBWA – “Management by Walking Around” motif, and authored in search of excellence) in
the 1980’s. This was a strategy vision to include businesses, business units, and teams.

The model is based on the theory that, for an organization to perform well, these seven
elements need to be aligned and mutually reinforcing. So, the model can be used to help
identify what needs to be realigned to improve performance, or to maintain alignment (and
performance) during other types of change.

27
3.1 McKinsey 7S framework on Milma:

3.1.1 Strategy:

Considering strategy to be one of the most significant aspects of any organisation, which must
be executed at all levels and departments.

Milma Dairy key goal is to provide services at a low cost in order to gain a competitive edge
and profile through client satisfaction.

28
  Cost leadership strategy:

The company's corporate strategy is an overall cost leadership strategy, which argues
that a competitive advantage in the form of providing services to clients at cheaper
rates aids in gaining a larger market share.

 Customer relationship management (CRM):

By keeping track of its previous clients and other vendors, the company focuses more
on maintaining a healthy connection with its clients, and other stakeholders.

 Financial straeting strategy:

Management of finance is considered as the life blood of business

organization. A firm cannot be Sustained in the absence of an efficient
finance department. Financial information of the dairy Supplied by the
financial department is prepared by financial statements or accounting
reports.The department consists of total 4 employees headed by Accounts
Officer. Finance and Account Department deals the financial aspects of
the organization and prepare annual budget, balance Sheet, estimate the
source and application of funds. The main duty of this department is
Procurement of funds, determination of sources of funds and utilization
of procured funds.

The company capitalises on appropriate cash and bank resources to meet the
company's day-to-day operations, i.e. working capital. Company technique reduces
cost structure while delivering amazing high-quality results.

 Hiring:

The company is mainly focused on recruiting only experienced staff with reasonable
experience for the jobs applied for.

3.1.2 Structure:

29
An organisational structure is a system of explicit and tacit institutional norms and policies
that define how various job positions and duties are distributed, controlled, and
coordinated.The organisational structure also governs how information moves inside the
corporation from one level to the next.An organization chart is a diagrammatical form which
shows important aspects of an Organization including the major functions and their respective
relationships. In other words, it is A graphic portrayal of positions in the enterprise of the
formal lines of communication among Them. It provides a bird’s eye-view of the
relationships between different departments or Divisions of an enterprise as well as the
relationships between the executives and subordinates at Various levels. It enables cash
executive and employee to understand his position in the Organization and to know to whom
he is accountable. Thus, it is obvious that an organization Structure has the following
characteristics:

1. It is a diagrammatical presentation.

2. It shows principal lines of authority in the organization

3. It shows the interplay of various functions and relationships

4. It indicates the channel of communication

30
Organizational chart of milma

31
3.1.3 Systems:

A system is a tool that is internally organised, with pieces that are so closely linked that they
act as one in respect to external conditions and other systems. An element can be described as
the smallest unit in the system that performs a specific function.

Finance system:

Accounting books and journals are kept in digital form by the finance department. It makes
use of a variety of high-end financial and accounting software.

There are two parts to the financial accounting system. This division boosts productivity.
They are classified as having a primary system and a secondary system. Each of these
systems has distinct purposes that improve work efficiency.

 Primary system:

The primary system deals with Cash/Bank, Receipts/payments, Journal voucher and
general Ledger etc.

 Secondary system:

The secondary system is responsible for managing a team of qualified financial

personnel. These finance team members operate under the supervision of Mr. Naresh
N and are responsible for the seamless operation of all financial aspects of the
company.

Marketing system:

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.

3.1.4 Skills:

32
The capabilities and competencies available within the organisation. Qualifications and
experience are used to reflect one's skills. Employees of Milma Dairy are highly qualified
and experienced in their various domains and specialisations.

 Finance:

The finance team's skills include accounting and financial software knowledge,
fundamental accounting qualifications with extensive experience, and analytical
ability.

 Communication skills:

Communication skills are crucial for the senior site supervisor as well as the finance
department in the Milma Dairy Senior site supervisors work all day with their team
members, informing and working with them. The finance department has to maintain
communication with various clients and vendors on various tasks in the dayto-day
activities.

3.1.5 Staff:

The total number of employees working under milma enterprises is approximately 80

inclusive of all the people who are also on temporary employment.

Note: The total number of employees working under Milma dairy may vary depending on
projects.

Headcount list:

S.NO. STAFF NO. OF

HEADCOUNT

1 Manager 1

2 Site engineers 8

3 Site supervisors 8

4 Office staff 2

33
 5 Project designers 3

6 Welders 12

7 Fitters 18
8 Helpers 24

9 Labours (Depend on work)

10 Other staff 4

3.1.6 Style:

The attitude of a company's senior employees establishes a code of behaviour through their
interactions and symbolic decision-making, which shapes the management style of its leaders.

3.1.7 Shared values:

Shared values are often referred to as super-oriented goals. It is McKinsey's model's

interconnected centre. The purpose, objectives, and values of every organisation serve as the
basis and play a crucial part in harmonising all key elements to maintain an effective
organisational design.

The shared values of Milma Dairy are the following:

 Client oriented:

Milma Enterprises treats every client with the highest respect and courtesy. The
organisation offers superior fire protection solutions to all of its clients at a very low
cost.

 Team spirit:

Milma Enterprises places a premium on teamwork. This collaboration fosters a

willingness among individuals and professionals to collaborate in order to attain a
common goal.

34
  Leading through learning:

The culture at Milma companies supports innovation and learning.

PORTERS FIVE FORCE MODEL

Michael E Porter of Harvard Business School Created Porter's Five Forces of Competitive
Position Analysis in 1979 as a basic framework for assessing and evaluating a business
organization's competitive strength and position.

Porter's Five Forces is a model that identifies and analyses the five competitive forces that
shape any sector and aids in determining the industry's weaknesses and strengths. Five Forces
analysis is widely used to define corporate strategy by identifying an industry's structure.
Porter's approach can be applied to any sector of the economy to better analyse industry
competitiveness and increase a company's long-term profitability.

Porters five forces analysis is a strategy management tool for analysing industries and
understanding the underlying profitability levers in a certain business. The Porters Five
Factors model can be used by Milma Enterprises to understand how the five competitive
forces influence profitability and to design a strategy for increasing the company's
competitive edge and long-term profitability.

35
What are Porters five forces?

Michael Porter discovered five forces that have a substantial impact on a firm's profitability in
its industry in his ground-breaking study "five forces that shape strategy." In today's business
world, this five forces analysis is also known as a Porter Five Force analysis.

According to Porter, there are five forces that reflect the primary sources of competitive
pressure inside a sector. They are

The five forces of Porter’s are;

• The treat of the entry of new competitors.

• The threat of substitute products or services.

• The bargaining power of customers

• The bargaining power of suppliers.
• The intensity of competitive rivalry.

3.2.1 Threats of new entry of new competitors

In dairy industry the threat of entry of new competitors is very high because of the
liberalization and privatization of government. It is easy for new company to entry into
this field that created a lot of competitors for Milma.

2. The threat of substitute products or services.

The threats from substitutes are negligible in the case of Milma products. Only
substitute for milk available in the market is the milk powder from other leading
companies. But the threat created by them is very low.

3. The bargaining power of customers.

Customers are having a good bargaining power because there are lots of local
brands available in the market with considerably low price than Milma and also
with good quality.

36
4. The bargaining power of suppliers

There is no bargaining power for suppliers in the case of milk. Since milk is a
product which cannot be kept for a long time so suppliers cannot bargain much
more. Suppliers can only bargain in the case of skim milk powder and butter oil.

5. The intensity of competitive rivalry

In the past Milma is the monopoly stage. But now it faces a stiff competition
from the competitor. There are several types of local brands available in
Alappuzha. With the good quality products produced during these days help
Milma to face this competition.

37
 CHAPTER - 4
SWOT ANALYSIS

38
 CHAPTER – 4

SWOT Analysis

SWOT analysis (strengths, weaknesses, opportunities, and threats) is a framework for

evaluating a company's competitive position and developing strategic plans. SWOT analysis
evaluates internal and external elements, as well as present and possible future opportunities.

A SWOT analysis is intended to assist a realistic, fact-based, data-driven examination of an

organization's, initiative's, or industry's strengths and weaknesses. The organisation must
maintain the accuracy of the study by avoiding preconceived notions or grey regions and
instead concentrate on real-life scenarios. Companies should use it as a guideline rather than a
prescription.

SWOT analysis is a technique for evaluating a company's performance, competitiveness, risk,

and potential, as well as a specific section of the company, such as a product line or division,
an industry, or another organisation.

Using internal and external data, the technique can direct firms toward more likely-to-
besuccessful strategies and away from those that have been or are likely to be less successful.

39
SWOT Analysis of Milma enterprises:

4.1 Strengths:

1.Good brand name in the Kerala dairy market:Milma has his own unique Brand id it
will helpful for the growth of milma.

2. High quality product: Milma has providing the quality product to the customer in
every product they conducting the quality check.

3. ISO certification: considering milma is an iso certified organization that ensures

the quality of the product.

4. Service oriented function: Milma is establishing lot of programme to the members

in milma board. They are providing subsidy and insurance for the farmers.the
members has get the yearly bonus in milma and provide basic price for their
products. And milma has starting providing insurance for their members.

5. Good distribution channel: The distribution has been organized through a network
of Dealers/Agents attached to the four Dairies, 7 transporters, 59 area distributors,
38 peripheral re-distributors, 25 wholesalers and 7463 retail agents.

40
 6. Good manufacturing infrastructure. Milma was keeping a standard in the
production unit high quality machines has using in the manufacturing plant.

7. Milma is a farmer’s owned organization: Carryout activities for promoting

production, processing and marketing of milk and milk products for the economic
development of farmer community.

8. Eco- friendly plant: The plants are eco-friendly and it creates a good atmosphere
for working.

4.2 Weaknesses:

1. Increasing cost of procurement of raw milk and material: Under revised costs, a
household purchasing 1 litre of milk every day will have to spend Rs 60 extra in a
month and Rs 1440 extra in a year.

2. Inadequate sales promotion campaigns: The proper sales promotion campaigns has
not conducted in milma it will affect the marketing process.

3. Inadequate sales outlets in rural areas: It affect the supply process because the
farmers want to travel long distance to selling the milk. It affect the supply chain
process.

4. Absence of technology up gradation programs: The organization will not move the
changes it will affect flow of goods and services.

5. Faces milk shortage: In certain times The plants has facing milk shortage it will
affect the plant. In the starting of covid the firm faces milk shortage. The diseases
of cows leads to milk shortage.

4.3 Opportunities:

41
 1. Large product range: The federation,once again in the black after a gap of several
years will launch new product like milk chocolate suger free ice cream and
yogurt.it lead to incrase of production range.

2. Scope of product diversification: if different products will introduce the benefits

will be high and it will attract the people.

3. The company can expand its distribution area: it leads to high profit brand name of
the company and they export their products in to more than five countries and
create more opportunities.

4. Growing demand for product is a good sign: The Demand of milma product was
high and it will helps the growth of the firm.

5. Potential for widening the market by redesigning the market strategies so as to

improved large scale marketing by direct supply to hotels,bakaries..

4.4 Threats:

1. Stiff competition in the local market: State undertaking Kerala

Livestock Development Board (KLDB) will roll out its packaged milk
‘Thripthi’ opromising some tough competition for MILMA.

2. The liberal credit facility offered by other organization.

3. Changing life style and taste of consumer: The customers are moving
the changes in the world . customer taste and preferences are changing
day today it becomes a threat in mmilmathe people will expect new
variety product

4. Seasonal fluctuations in the availability of raw materials

5. Demand exceeds supply.

42
43
CHAPTER -5
ANALYSIS OF FINANCIAL

STATEMENTS

44
 CHAPTER – 5

ANALYSIS OF FINANCIAL STATEMENTS

Balance sheet 2018-2020

45
 (Amount Rs. In lakhs)

2018 Particulars Sch No. 31.03.2020

Source of Funds

991.93 Share Capital 1 991.93

6223.39 Reserves & Surplus 2 5,742.64

0 Long-term loans 3 _

650.10 Corpus fund for Milk Powder 4 650.10

Plant

7865.42 Total 7,384.67

Application of Funds

1768.92 Fixed Assets 5 2,650.44

24.50 Investments 6 24.50

11291.48 Current Assets, Loans & 7 11,251.69

Advances

5219.48 Less: Current Liabilities & 8 6,541.96

Provisions

6072.00 Net Current Assets 4,709.73

7865.42 Total 7,384.67

46
 Schedule to Balancesheet as on (Amt.in Lakhs)
31/03/2020

2018-19 Particulars Sch No. 31.03.2020

Share Capital 1

991.93 Shares of Rs.1000/- each 991.93

991.93 Total 991.93

Reserves & Surplus 2

427.72 Grants from NDDB 427.72

4697.40 Grants from Govt. 4,913.40

_ Grants from NPDD 42.50

382.56 Reserve Fund 382.56

41.59 Capital Reserve 41.59

674.12 Profit and Loss Account 65.13

6223.39 Total 5,742.64

Long-term loan 3

- NDDB Term Loan -

- Imprest Adv- MRCMPU

0 Total

47
650.10 Corpus Fund for MPF 4 650.10

1768.92 Fixed Assets (Net Block) 5 2,650.44

Investments 6

20.00 Kerala Feeds – 200 Shares of Rs.10000/ 20.00

each

4.00 NCDFI 4.00

0.50 KSCK & CAMS Ltd Kannur - 2 0.50

Shares of 25000 each

24.50 Total 24.50

Current Assets, Loans & Advances 7

1902.97 Inventories 1,759.61

2054.69 Sundry Debtors 2,770.97

194.17 Loans & Advances 185.07

82.74 Interunion balances/Interunit accounts 155.56

2363.60 Contractors Balance(Projects) 2,154.52

790.06 Deposits 831.79

3903.25 Cash and Bank Balances 3,394.17

11291.48 Total 11,251.69

48
 Current Liabilities & Provisions 7

3219.12 Creditors for goods supplied/others 4,677.34

25.70 Sales Advances from Dealers 19.06

132.22 Expenses Payable 61.49

206.61 EMD/SD 195.68

185.79 Outstanding to Employees/Misc 187.52

recoveries

110.17 Outstanding liability payable 82.78

17.42 Income Tax 19.19

27.75 GST payable 24.34

641.34 Deposit from Societies/others 621.00

561.96 Other Provisions &Reserves 561.96

91.40 Others 91.60

5219.48 Total 6,541.96

FINANCE

During the year 2019-20, KCMMF achieved a turnover of Rs.447.59 crores

(provisional) against the turnover of Rs. 420.98 crores during the previous year.

49
The Provisional net loss of the reporting year is Rs. 7.39 crores. Fluctuations in
the cattle feed Rawmaterial prices,manpower shortage,availability of cattle feed
raw material etc. are the Major constraints faced by the Federation. Turnover of
KCMMF units for the reporting year In comparison with previous year are as
follow

We are sincerely attempting for the betterment of the living condition of our farmers by
passing on remunerative price for their produce along with other welfare measures. We have
to strengthen our farmers by enhancing their capability to produce more milk and thereby
ensuring the prosperity of our state and nation and attain our dream of self-sufficiency

RATIO ANALYSIS:

50
Ratio analysis is a quantitative tool for gaining insight into a company's liquidity, operational
efficiency, and profitability by examining financial statements such as the balance sheet and
income statement. Ratio analysis is a key component of fundamental equity analysis.

Ratio analysis is used by investors and analysts to assess a company's financial health by
examining past and current financial statements. Comparative data can be used to show how a
company performs over time and to forecast anticipated future performance. This information
can also be used to compare a company's financial position to industry averages and to see
how it compares to others in the same industry.

Ratio analysis is a type of financial statement analysis that is used to provide a rapid picture
of a company's financial performance in a number of categories. Short-term solvency ratios,
Debt management ratios, Asset management ratios, Profitability ratios, and Market value
ratios are the different types of ratios.

Financial ratios are an excellent technique to rapidly analyse a company's health before
delving into its financial records. Price-earnings ratios can help investors understand pricing,
while debt-coverage ratios can alert them to potential liquidity concerns. The act of
determining and presenting the relationship of items and groupings of things in financial
statements is known as ratios analysis of financial statements.

The three key ratios that we should calculate to get a fast picture of the company's financial
situation are as follows.

51
 1. Current ratio

2. Acid test ratio / Quick ratio / Liquidity ratio 3.

Proprietary ratio

1. Current ratio:

The current ratio is a liquidity ratio that assesses a company's capacity to pay short-term or
one-year obligations. It explains to investors and analysts how a firm might maximise its
current assets on its balance sheet in order to pay down its current debt and other payables. A
standard ratio for current ratio is 2:1.

The formula for calculating a company’s current ratio is:

Current ratio = Current assets

Current liabilities

CURRENT RATIO

YEAR CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO

2019 11251.69 5219.48 2.15

2020 11251.69 6541.96 1.71

Interpretation:

The standard current ratio is 2:1. This means that current assets have twice the capacity to
meet their current liabilities. It is seen from the above table that during the year 2019, the
current ratio was 2.15:1 and in the year 2020it was 1.71:1. The current ratio decreasefrom
2.15 to 1.71 That means, compared to last year, the current ratio has slightly decreased.

52
 2. Proprietary ratio:

The proprietary ratio (also known as the equity ratio) is the ratio of shareholders' equity to
total assets, and it provides a general assessment of the amount of capitalization currently
employed to fund a corporation. If the ratio is high, it means that a company has enough
equity to fund its operations and likely has flexibility in its financial structure to take on extra
debt if necessary. A low ratio, on the other hand, implies that a corporation is using too much
debt or trade payables to sustain operations rather than equity (which may place the company
at risk of bankruptcy).

The formula for calculating a company’s Quick ratio is:

Proprietary ratio = Quick assets

Quick liabilities

Proprietor’s funds = Share capital + Reserves and surplus

PROPRIETARY RATIO

YEAR CAPITAL TOTAL ASSETS PROPRIETARY RATIO

2019 991.93 7865.42 0.126

2020 991.93 7384.67 0.134

Interpretation:

There is no ideal ratio for the proprietary ratio. The company had gone for financial leverage
for the last 2 years. The company was showing an increase in trend in the capital. The
company was showing an increase in trend from 0.126 to 0.134, which means the higher the

53
proprietary ratio, which indicates a strong financial position of the company and greater
security for the creditors of the company.

3. Proprietary ratio:

The proprietary ratio (also known as the equity ratio) is the ratio of shareholders' equity to
total assets, and it provides a general assessment of the amount of capitalization currently
employed to fund a corporation. If the ratio is high, it means that a company has enough
equity to fund its operations and likely has flexibility in its financial structure to take on extra
debt if necessary. A low ratio, on the other hand, implies that a corporation is using too much
debt or trade payables to sustain operations rather than equity (which may place the company
at risk of bankruptcy).

The formula for calculating a company’s Quick ratio is:

Proprietary ratio = 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑓𝑢𝑛𝑑𝑠

Total assets

Proprietor’s funds = Share capital + Reserves and surplus

Proprietary Ratio

Year Capital Total asset Proprietary ratio

2019 991.93 11291.48 0.08

2020 991.13 11251.19 0.08

Interpretation:

There is no increase in proprietary in proprietary ratio.it same in two years.

54
4. CASH RATIO:

The cash ratio, sometimes referred to as the cash asset ratio, is a liquidity metric that indicates

A company’s capacity to pay off short-term debt obligations with its cash and cash
equivalents.

Compared to other liquidity ratios such as current ratio and quick ratio, the cash ratio is a

Stricter, more conservative measure because only cash and cash equivalents – a company’s

Most liquid assets – are used in the calculation.

The formula for calculating a company’s Cash ratio is :

Cash Ratio = 𝐶𝑎𝑠ℎ+𝐶𝑎𝑠ℎ 𝐸𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡𝑠

Current 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

55
CHAPTER - 6
LEARNING EXPERIENCE

CHAPTER – 6

LEARNING EXPERIENCE

My internship at Milma dairy was a good opportunity for me to gain a better understanding of
the professional workplace and the responsibilities that come with it. During my internship, I
was introduced to a variety of work-related activities and was given duties with the freedom
to work on my own after receiving initial direction.

Throughout my internship, I had the opportunity to see first - hand what it takes to manage a
firm with a high level of professionalism. Working in an office atmosphere provides an
opportunity to learn about office manners from those with more job experience. During my

56
internship, the employees were incredibly supportive and friendly. They were extremely
knowledgeable about their profession and were eager to share their knowledge with me.

During my internship, I was able to gain a wide range of skills. The most essential thing I
learnt was that if you are ready to engage with (customer clients) and listen to what they truly
need, you can build relationships that benefit both parties. I studied skills such as business
communication, event planning, marketing, and customer service.

Some of my first – hand experience of working at Milma Dairy:

 As my external advisor was a production Department, I spent the most of my time in

the production department. They gave me all of the foundations of production.

 I got an opportunity to prepare quotations for various projects.

 I got an opportunity to prepare purchase orders and deal with many clients through
telephone communication and e-mail.
 During the internship programme, I had the opportunity to help and be a part of the
production department.

This internship taught me to be punctual, to treat everyone with respect, to handle with
pressure, to manage tasks on my own, and to manage things to the best of my ability.An
internship programme, in my perspective, is an excellent way for graduating students to
transition into the job with a sense of professionalism, motivation, and a desire to succeed in
the future.

57
 BIBLIOGRAPHY

BIBLIOGRAPHY

Books of reference:

58
 • Harold Koontz, Heinz Weihrich , Essentials of Management , Tata
McGraw- Hill publishing Company Ltd New Delhi 2010
• Kothari C.R, Research Methodology Methods and Techniques, Second
edition, New Age International Publishers, New Delhi
• Philip Kotler, Marketing Management- A South Asian Perspective, 14th
edition,pearson

Online sources:

• http://www.milmatrcmpu.com

• http://en.wikpedia.org/wiki/Kerala_Co-operative_Milk_Marketing_Federation

59