CHAPTER ² III COMPANY PROFILE
COMPANYPROFILE Introduction to Krishna District Milk Producers Mutually Aided Cooperative Union Limited: The Krishna District has great potential for milk production with a substantial marketable surplus to tap. The market oriented milk production is the key livestock activity to generate stable income for the farmer. About 90 percent of rural households are directly concerned with livestock production. 40 percent are mainly dairy oriented. It is livelihood security to the rural poor and buffers the risks due to crop failure The Original dairying in Krishna District commenced in 1965 by the state Government with the assistance of UNICEF.(United Nations International Children Emergency Fund). Under a pilot project named INTEGRATED MILK PROJECT ± HYDERABAD AND VIJAYAWADA (1960) a Milk supply scheme was introduced in 1965 to organize milk collection from the Villages, to process at chilling at Vijayawada and Hyderabad. The milk supply Scheme was a great success with its services to the producers and quality supplies to the consumers. The initial procurement network was gradually extended to all over the district with in a span of 5 years. The ³Milk Products Factory´ first of its kind in south India was established and commissioned in Vijayawada by 1969. The company got ISO 22000-2005 and ISO 14000 Trademark for its quality of milk. The company recently made record sales sales of 1.64 Lakhs its/day where as its previous previous sales record was 1.45 laksh its/day.
VISION ³Farmer¶s prosperity through technical innovations and customer orientation with specific focus on quality and cost.´
MISSION ³ Dairying
in the district district to be the major major instrument instrument of strengthening rural economy and
making available safe milk and milk products.´
QUALITY POLICY: Aiming ³ Aiming
to be a technologically advanced dairy with global outlook providing products
and services of highest quality delighting the customers.´ Most of the Village Dairy Cooperative societies are viable and managed by the producer members receiving better technical know-how. The Government has enacted APMACS Act, 1995. (Andhra Pradesh Mutually Aided Cooperative Societies Act, 1995), which provides autonomy
to
the
cooperatives.
As
pr
the
policy
and
directives
from
the
state
Government/Federation, The Dairy Cooperatives registered under APCS Act, 1964 were converted in to APMACS ACT, 1995. The Krishna Milk Union in July 2001 in consonance with the wishes of its member producers. Elections are being held as per byelaws to the Board of Management of Krishna Milk Union under APMACS Act, 1995.
ORGANISATION STRUCTURE: Staff Position
Managing Director
1
Deputy Director
2
Senior Accounts Officer
1
Dairy Managers
6
Asst. Dairy Engineers
2
Quality Control Officers
1
Asst. Dairy Manager
15
Fodder Development Officers Officers
1
Junior Engineer
4
Technical Staff
58
Transport
30
Finance
20
Administration
70
Field Staff
55
Others (Non-technical)
304 ---------
TOTAL
570 -----------
ORGANISATION CHART: Diagram-3.1
General Body
Board of Management
Managing Director
Production
PM
Finance
Personal
QC
Stores
MIS
APS
Organization: Integrated Milk Project (1960) Dairy Development Department (1971) AP Dairy Development Corporation Ltd (1974) AP Dairy Development Co. op Federation Ltd (1981)
There was a big retinue of 1850 staff in different categories working under the dairy units in the District under the administrative control of AP Dairy Development Corporation (APDDC) a stat Government Undertaking in 1974.
The nationwide strategic and structural change s organized for Dairy Development activities across the nation have brought the dairy units under the cooperative set up in Andhra Pradesh in 1981. The replication of Anand Pattern Dairy Cooperatives in Krishna District has its beginning with the all out support of NDDB. Primary Milk Producers cooperative Union at district level and AP Dairy Development Cooperative Federation at State level have come in to being. Enormous infrastructure financed by NDDB under Operation, processing and marketing in the District.
RANKING OF THE DISTRICT IN ANDHRA PRADESH : Milk production
-
IIIrd
Processing
-
IVth
Marketing
-
IIIrd
Krishna District has milk procurement ranging from 45,000 Kgs per day from 1969 to 1998 District being being buffalo concentrated has wide procurement functions. functions. The District District Co-Operative Milk Union provides the following inputs to the farmers for increasing milk production. y
Premixed cattle feed
y
Cattle insurance insurance at 2/3 subsidies
y
Eternity first aid facilities
y
Fodder seeds at subsidized rates
y
Animal vacancies and medicines at subsidize subsidize prices. pr ices.
y
A1 facilities
y
Breading bulls
y
Extension services.
PRODUCT MIX OF KRISHNAUNION Market Milk:
Vijaya Gold Vijaya Special Vijaya Premium Vijaya Vijaya Economy Vijaya Vijaya Low Fat Long Life Products
UHT Milk in 1pack UHT Milk in200ml pack UHT UHT Low Fat Milk Fresh Milk Products
Basundi Curd Lassi LassiButter Butter Milk Sterilized Sterilized Flavoured Milk Milk Fresh Milk Products
Cooking Butter M Milk ilk Cake Skim Milk Powder Paneer Paneer DoodhPedaGhee
Existing Infrastructural Facilities in KrishnaUnion. Table-3.1 S.NO
Name of the
UNIT
CAPACITY
FACILITY
I
MILK CHILLING
1
Pammarru
Liters/Day
50000
2
Verrayalanka
Liters/Day
18000
3
Gudlavalleru
Liters/Day
18000
4
Hanuman Junction
Liters/Day
18000
5
Chillakallu
Liters/Day
12000
6
Tiruvuru
Liters/Day
12000
Total Chilling:
128000
II
MIL PROCESSING
Lakh Liters/day
2.50
III
Ghee Manufacture
MITs/Day
18.00
IV
Milk Drying
MITs/Day
22.00
V
U.H.T.Milk U.H.T.Mi lk
MITs/day
45000
VI
CATTLE FEED
MIXING FACILITY
1
Budhavaram
MITs/Day
30.00
2
Gudlavalleru
MITs?day
18.00
Total:
48.00
MILK PROCUREMENT: Milk is being procured twice a day from about 830 villages in the district organized through 29 routes and 6 chilling besides getting raw milk directly to the factory from certain villages in a radius radius of 150 KM around Vijayawada. Among 480 centers, about 431 are registered registered societies and under Anand Pattern.
MILK PRODUCT FACTORY ± VIJAYAWADA: DATA SPECIFICATIONS: Area occupied by the factory
:
27.3 Acres
Value of factory building
:
400 Lakhs
Money given by UNICEF
:
53 Lakhs
Investment on equipment
:
600 Lakhs
Opened on
:
11-04-1969
Workers
:
1,538
Date of formation formation of union
:
06-07-1983
Date of transfer of management
:
08-02-1985
Of the union Annual turnover
:
60 Crores
Milk
:
its/day
Ghee
:
17,162 Kgs. Per month
Butter
:
52,940 Kgs. Per month
Milk powder
:
4 tonnes
Packet filing
:
1,60,000 packets/day
BUILDINGS:
PRODUCTION POWER:
Refrigeration capacity
:
1.5 tonnes
Contracted maximum demand
:
900 Chilling
Processing
:
1,50,000
COMPANY GROWTH : As an integral part of the above project the milk products factory, Vijayawada was commenced on 11-04-1969. The Factory ha got an initial initial handling capacity of 1,25,000 liters in the first stage with provision of handle 2,50,000 liters milk in the second stage. It has crossed the mark of 1, 00,000 liters in the very first year of its operation getting admiration from the UNICEF offi o fficials. cials. The women has been playing a greater role in the rural dairying i.e., feeding of animals, washing and milking etc., To enourage this activity in an organized way the APDCFL of foundation three district viz., Nalgonda, Krishna and Chittoor already 8 women cooperative societies are organized and 200 new members have been enrolled a part from 1000 women members enrolled in other societies so cieties..
Chilling Centers: The milk products factory Vijayawada has set up 10 chilling centers which are given producing chilled milk for the compsotion of the various segments in the consumers. Chilling centers are very useful to milk products factory following centers are in Krishna District under the location of Milk products pro ducts Factory, Vijayawada. Pamarru
Hanuman junction
Veerayyalanka
Gudlavalleru
Chillakollu
Thiruvuru
Gannavaram
Vuyyuru
Kaikaluru Table-3.2 TOWN
No. of selling Booths
Daily Sales (In Liters)
VIJAYAWADA
185
68,000
MACHILIPATNAM
42
4,000
GUDIVADA
25
1,200
TOTAL
252
73,200
Infrastructure and Facilities: Milk products factory Vijayawada is located on 27.3 acres of land which houses of dairy plant, Aseptic packing station. station. Administration Administration office, effluent treatment treatment plant, Electric sub station and residential quarters.
Following are the facilities facilities available in Milk Product
Factory, Vijayawada and its field centers.
Milk Products Factory, Vijayawada: S. No.
Table-3.3.1
Name of the Facility
Unit
Capacity
1
Milk Processing
Lakhs Lits/day
2.5
2.
Milk dairying
MTs/day
22.0
3.
Ghee Manufacturing
MTs/day
18.0
4.
Butter manufacturing
MTs/day
22.0
5.
UHT Milk Milk packing
Lts/day
45,000
6.
Milk packing
Lts/day
2,00,000
7.
Godown space
MTs
3,000
8.
Butter cold space
MTs
500
Source Of From Product Is Procured: Table-3.3.2 S.No.
Name of the Centre
Unit
Capacity
1.
MCC Pammaru
Lts/day
50,000
2.
MCC Veerankilock
Lts/day
18,000
3.
MCC Gudlavalleru
Lts/day
18,000
TOTAL
86,000
4
MCC Hanuman Junction
Lts/day
18,000
5.
MCC Chillakallu
Lts/day
18,000
6
MCC Tiruvuru
Lts/day
12,000
7
No. computerized milk collection and testing centers
8 9
No. of Bulk coolers operating (Planned to establish ten 6 more) DCS having electronic milk testers 450
10
No. of A 1 centers
56
11
No. of V F A Centers
240
12
No. of DCS organized
630
13.
No. of MPAs
320
14
Exclusive women DCs
103
15
Farmer members
1,86,689
16
Women members
23,347
17
No. of milk routes
35
18
No. of DCS having its own building
400
25
Cattle Feed: Table-3.3.3 S.No.
Name of the Plant
Unit
Capacity
1.
EMP Buddavaram
MTs/day
30.0
2.
FMP Gudlavalleru
MTs/day
18.0
Processing and Production: One process of producing milk processing is supervised by Dairy managers (I/C. Production) is heading the production division supported by four dairy managers, 11 Asst. Dairy Managers and other production staff engaged in milk production on his process involves manufacturing finished finished goods storage, milk milk processing, Butter making, making, Ghee making, Powder making by-products
Milk Reception: As soon as milk is arrived at the reception dock either through cans or tankers, the laboratory authorities conduct all the platform/Bacteriological / chemical test and after its quality confirmation the milk is received and sent to storage.
Raw Milk : Milk products factory, Vijayawada is directly connected by around 175 villages a radius of around 50 KMs around Vijayawada. Vijayawada. The milk milk collected from these villages is collected directly last Milk products factory, Vijayawada for which it equipped with a can conveyer, an electrical weighing machine, a dump tank and a straight through can washer with cleaning capacity of 600 cans per hour.
Chilled Milk: Chilled milk from chilling centers and other stations through milk tankers are received at the end after receiving receiving quality confirmation from laboratory laboratory the milk is sent for for storage.
Milk Processing Section: It has 12 storage tanks each of 15,000 its. its. Four creams vats each of 500 ltrs ltrs capacity. It is equipped with 13 milk pasteurizer of 20,000 ltrs capacity/hour, 15,000 ltrs/hour and 10,000 ltrs/hour respectively. respectively. It also has has cream pasterizers with with a capacity of 500 ltrs/hour. ltrs/hour. Altogether it has milk storage of four lakh liters.
Operations: Separation of required quantity of whole milk to the extent of demand and with admixture of whole milk/cream and skim milk in required proportions, milk is standardized to their composition and sent them to the packing or products manufacturing divisions.
Butter Sections: It is equipped with three butter churns churns with drum capacity of 1500 lts. lts. Each. The cream loaded the drums in churned for about three hours for separation of liquid butt er milk from cream after setting of butter. butter. It was washed with chilled water to remove remove solids solids from it.
The butter butter
formed is collected and sent back to processing section while the solids in liquid form of butter milk is sent sent back to processing section or further usage. To the extent of usage the butter butter is packed in ½ kg packs and 20 Kgs packs and remaining is utilized for ghee making.
Ghee Section : There are 7 ghee boilers in ghee section each with 1000 lts. Capacity in which butter is melted for 3 hours hours at 120 Deg. C. C. After attaining attaining satisfactory satisfactory flavor, color etc., the ghee is
pumped to ghee setting tanks where it is allowed for eight hours for setting of sediment at the bottom of the tank. There are settling tanks each 8000 ltrs. Capacity and low storage tank each 3000 ltrs. Capacity. Then the ghee is clarified and and filtered filtered with fine filters. filters. After obtaining satisfactory report from lab authorities the final filtered ghee is packed in 5 ltrs, 2 ltrs and 1 ltr and ½ ltr. Etc., The total capacity of ghee packing is 18.0 MT per day.
By-Product Section: All the fresh milk products like buttermilk, sweet lssie, khova, paneer, yoghurt, milk cake are manufactured under strict hygienic and a septic conditions.
Powder Section: It has two powder plants.
An Alfa Alfa level makes single single effects gravity gravity flow milk
evaporation plant with drying capacity of 8.0 MT per day and another Vulcan level double effect gravity flow milk evaporator plant with drying capacity of 14.0 MTs per day are under operation. Fine and superior superior quality ISI gerade SMP SMP is packed in 25 Kgs. Kgs. 1 Kg and ½ Kg.
Milk Packing: It has the capacity of pack 2,00,000 ltrs. Of various varieties varieties of milk milk per day. It is equipped with eight sachet sachet packing machines each capacity of 150 tubs per hour. Five varieties varieties of milk in ½ it sachets for for directs consumers. Cans for institutions institutions are being packed.
Aspetic Packing Station (APS) : Special officer is is heading the APS APS Unit. The APS was established in 1988 with the financial assistance of NDDB in the existing campus of milk product factory, Vijayawada with a total outlay 22 crores. Milk is treated in high temperature plant for for 203 seconds seconds at about 1400 Deg. C under low pressure pressure followed by rapid cooling. This enables milk milk free of micro organisms
which are liable liable to proliferate proliferate during storage. Tetra Brick is a campact, sterile, pilfer proof, unbreakable and long shelf life pack that retains freshness and goodness of milk for 3 -4 months.
PERSONNEL AND HRD: Personnel Officer is is heading the personnel personnel department. HRD activities are carried carried out for for the befit of the employees. It is is looking after the service/administration service/administration matter of the staff staff of this union besides implementation implementation of the following Act for for their their welfare. y
Industrial Dispute Act 1947
y
Payment of wages Act 1936
y
Minimum wage Act 1948
y
Equal remuneration Act
y
Gratuity 1972
y
Workmen compensation Act
y
ESI Act 1948
y
Trade Union Act 1926 etc., etc.,
Finance: Senior
Accounts
Officer is heading the finance finance who is is assisted by four Assistant
Accountant Superintendent Superintendent and Finance Finance Staff.
The union has started its its operations
independently from 08-02-1985 onwards after taking the fixed assets from the State Federation at their book values as on that date.
Share capital: Authorised Share Capital Capital Rs.500 Lakhs. Then unions paid up share capital capital at present are Rs.106.24 Lakhs and Rs.31.87 Lakhs are share suspense waiting for co nversion. nversion.
Long term loans: The National Dairy Development Board has provided loans to the Union Order O.F. 2/3 program for capital projects in the union total Rs. 707.20 Lakhs was finished for various projects to the union under 70:30 7 0:30 loans cum grant basis.
MARKETING OF COMPANY PRODUCTS: Deputy Director (S & M) is heading the sales and marketing wing supported by a Sales Manager and three Assistant Assistant Sales Managers with a network of 700 booths, 300 round the cold cold chain parlors. The sales and marketing marketing wing of the union union functions round the clock for the distribution and marketing of milk and milk pro duction.
Ghee Section : There are 7 ghee boilers in ghee section each with 1000 ltrs. Capacity in which butter is melted for 3 hours hours at 120 Deg. C. C. After attaining attaining satisfactory satisfactory flavor, color etc., the ghee is pumped to ghee setting tanks where it is allowed for eight hours for setting of sediment at the botto m of the tank. There are settling settling tanks each 8000 ltrs. ltrs. Capacity and low low storage tank each 3000 ltrs. Capacity. Then the ghee is clarified and and filtered filtered with fine filters. filters. After obtaining satisfactory report from lab authorities the final filtered ghee is packed in 5 ltr, 2 ltr and 1 ltr and ½ ltr etc., The total capacity capacity of ghee packing is 18.0 MT per day.
By-Products Sections : All the fresh milk products like buttermilk, sweet lassie, khova, pannier, yoghurt, milk cake are manufactured
understrict
hygienic
and
aseptic
condition.
Powder Section: It has two powder plants. plants.
An Alfa level makes single effects gravity flow flow mi9lk
evaporation plant with drying capacity of 8.0 MT per day and another Vulcan level double effect
gravity flow milk evaporator plant with drying capacity of 14.0 MTS per day are under operation. Fine and superior quality quality ISI Grade SMP is packed in 25 Kg, 1 Kg and ½ Kg. Deputy Director ( S & M) is is heading the sales and marketing wing supported by a sales manager and three Assistant Sales Managers with a network of 700 booths, 300 round the cold chain parlors. The sales and marketing marketing wing of the union union functions round the clock for the distribution and marketing of milk and milk pro duction.
Distribution Network: Liquid milk distribution:
VijayawadaCity is divided into 24 zones, each zone is connected by a separate milk route operating booth morning and evening to distribute the milk to the commission agents and cold chain points. Product Distribution:
a. Local distribution within the district.
Through distributors, stockiest and retailers.
Products are delivered to these t hese distributors/stockiest/retailers. distributors/stockiest/retailers. b. Distribution to outside outside district : Through stockiest stockiest and Ex Factory direct sales through out the country.
S.W.O.T. ANALYSIS: Table-3.4 STRENGTHS y
WEAKNESSES
Milk producers potential in Krishna District
y
substantial y
business turnover.
Ability to handle highly perishable product
y
milk Adequate infrastructure facilities available.
y
Availability
of
well
y
y
y
y
Established bondage with farmers
y
Access to development funds and grants
y
Access to other co-operatives
culture
not
compatible
with
Employee¶s skills at various levels require up gradation
Ability to offer quality products with high profitability
Work
growing for customer service
Ability to meet any consumer demand demand for for milk and milk products
Product manufacturing facilities are out dated due to lack of modern facilities.
experienced
professionals
y
Milk and milk products are high priced during competitive edge.
y
y
High fixed costs occupying 15% of
y
Business
systems
anern
management
culture is yet to be adopted y
Managers lack of business experience.
THREATS y
OPPORTUNITIES Increased purchasing capacity
y
Intense competition in liquid milk market
y
Rapid urbanization
y
Entry of organized private section
y
Growing food sector
y
Increasing competition for the marketable
y
Responsive state government
y
Export opportunities for the long life aseptic milk
y
Responsible milk producer base
surplus milk in rural areas. y
Employee¶s resistance to change change
COMPANY PRIDE y
Daily averge milk milk procurement 1,63,794 its.
y
Turnover of business has reached to 200 crores
y
Daily milk sales average reched to 1,60,000 its
y
Obtained ISO 9001. 2000, 14000 and HA.A.C.C.P. HA.A.C.C.P. Certification Certification
y
Earning profits and distributing bonus to its members.
y
Paying Rs.68crores per year to farmers farmers as cost of milk milk procured from from them. them.
y
Strengthened the rural economy by avoiding middlemen and making available safe milk products to the customers.
y
Provided self-employed to the rural women.
y
First powder plant established in South India. Ind ia.
y
Largest democratic functionary in the District serving the farming community.
y
Having more than Rs.1000 cro res grass root level production base.
y
Providing direct direct and indirect indirect employment employment to people
y
First dairy to introduce free varieties of liquid milk
y
First dairy to introduce liquid ice cream in tetra brick pack
y
First dairy co-operative to introduce curd in cups in South India
y
First dairy to introduce butter milk and lassies in tetra brick pack
y
Annual turnover more than Rs.121 crores with a continuous growth rate
y
First dairy to introduce Basundi in cups and milk cake
y
Distribution network with 27 milk distribution routes.
Summary: Starting with a tiny procurement of 243 liters of milk on 11-2-1965 under the milk chilling center, pamarru, the collection in the district has surpassed one lakh installed capacity of milk Products Factory, Vijayawadawith in two years i.e. in 1971 necessitating additional capacities. The Units were under Dairy Develop ment Departments (1971). The products manufactured at Milk Products Factory, Vijayawada such as Butter, Ghee, Skim Milk Powder, Whole Milk Powder and Infant Milk Food with the brand name VIJAYA earned appreciation of consumers all over the country. The VIJAYA becomes synonym for superior quality competing AMUL. The Milk Project is a buzz word among the public all over the region. The expansion of Milk Product Factory, to meet the increased handling needs has been taken up later under OPERATION FLOOD programmed by National Dairy Development Board (NDDB). Union collects milk from about 1 Lakh milk producers covering 800 villages organized through 20 routes. District District union has 6 milk chilling centers one each operating operating at Pamaru, Hanuman Junction, Junction, Veerankilack, Gudlavalleru, Chillakollu Chillakollu and Tiruvuru with with total processing capacity of 1.22 Lakhs/day.
It has milk products factory with the factory with the facilities facilities to
manufacture different milk products. Milk processing
2.5 Lakhs its/day
Milk dairying
22 MT/day
Butter
22 MT/day
Ghee
18 MT/day
The milk products factory factory at Vijayawada handles surplus surplus milk from from all coastal districts. About 1.73 lakh kgs/day with peak touching 3.18 lakh kgs/day. The factor conserves fat fat in the shape of white butter usually to the extent of 1000 MT per year. An Aseptic Packing Station (APS) was set up in the Milk Products Fatory to pack 50,000 liters of long the milk (UHT MILK) MILK) per day. Union has also also 2 cattle feed mixing plants with a total of 50 Mt/day. Mt /day.
