DAIRY INDUSTRY IN INDIA

India has the worlds largest cattle & Buffalo populations adopted to
tropical elimate & poor nutrition & environment. Acc to Livestock census 1982,
Indias bovine population was 191 million cattle & 69 million buffaloes. Milk
production gives employment to 70 million dairy farmers. In terms of total
production India ranks 2nd to USA with a production of 71 million tons in 19971998. The production of various products in 2002, 428 (000 metric tons)
APDDCF was formed in Oct 1981 to implement operation flood-II
program through involvement of producers in organizing milk production
procurement processing & it will low due to rapid population growth. It was
178 garam/day in 1990. There was only an increase of 50 grams per day from
1980-90. It is expected that milk availability will reach 213 gram/capita/day by
200 A.D as against 300 scientist. Today India ranks first in Milk production in
the world.

Dairy development in India:

India has the worlds largest cattle buffalo population adapted to
tropical climate & poor nutrition & environment. ACC to livestock census 1982,
Indias bovine population was 191 million & 69 million buffaloes . The forecast
for 2000 A.D is 204 million cattle & 78 buffaloes.

Dairy development in India received a fillip after independence

when industrialaization & awakening warranted the establishment of organized
milk collection , processing distribution of milk to cates the needs of the
expanded urban population. Planned development of during was 1st taken up in
the 1st 5 year plan (1951-56). The main deterrent factors far milk production was
in adequate of suitable marketing structure in the rural areas . Milk was being
marketed in the form of ghee which did not provide sufficient income to the
farmers to take up the daring. In most of the states larges dairies areas produces
& Urban milk treatment units. Some of the dairy units also established a chain
of trill collection & chilling centers in the rural areas to abbord necessary
facilities for handling milk in large volume & for long distance transport
without spoilage. These processing centers have had a stimulating effect on the
dairy industry in the country.
India has worlds largest cattle population however, per capital cattle
population in very less compared to developed nations. Dairy farming is
regarding nations. Dairy farming is regarding as a subsidiary Now it has
become an important agro business.

First dairy farm is established by military at Alahabad in 1989, British

troops got milk supplies from that farm. It also organized cross breeding with
European cattle breeds.

India is a country of village where farmers have small land holdings.

Money lenders borrow money at very high interest rates. The explited the
farmers who were poor.

As a result as large no of farmers in pune & Ahmednagar open hostilities

against moneylenders in 1879. Subsequently land improvement act 1883, &
agriculture act 1884 were passed to advanced loans at reasonable rates of
interest to farmers. The Fovernment realized that the cooperative credit society
act was essential. But enacted had folloing short comings.
1) Only credit societies are registed
2) Classification of the societies into urban & rural was scientific.
3) It was selected regarding distribution of profit thus another act named the
cooperative societies Act1912 was enacted. The act tool care of credit
under the supervision of central bank.

The cooperative unions remained control subjects. In the year 1919

cooperative societies become a state subject & fell with in the scope of
provision legislative. Each provinces stated formulations of their requirements.
After intendance the cooperative movement made rapid studies & govt adopted
the policy of promoting of cooperative movement far establishing economic
welfare in the country. The cooperative sectors was given an implement place in
the new economy and acted as a balance between private sector & public

sector. It becomes pace with the progress of movement & there should be
uniformity of cooperative society Act 1956 was amended 19 times to suit the
chanding circumstances. Hence the govt of India appointed a committee in 1956
to review cooperative acts in different states & prepared a model bill.
AP

DAIRY

DEVELOPMENT

COOPERATIVE

FEDERATION

(APDDCF)
APDDCF was formed in act 1981 to implement operation flood-II
program through active involvement of produces in organizing milk production,
procurement processing & marketing on three tier cooperative structure as per
the national policy of India.

The three tire system consists of primary dairy is operative societies at

village level cooperative union at district level & federation at the state level.
Planning investment in operation flood-II
Plan 34.43 Crs
Plan 247.53 Crs
Plan 187.00 Crs
Plan 349.17 Crs
Plan 1166.00 Crs
Plan 600.00 Crs
Plan 1700.00Crs

Milk products:
The surplus milk after meeting requirement of the liquid milk is being
converted in to products like food milk powder, Ghee, Butter, Sterilized milk,
doodhpeda, etc. All these products subject to strict quality control before being
dispatched.
The AP Dairy Development federation has got 6 products manufacturing units
in AP : Namely:
1) Milk products factory , Hyderbad
2) Milk products factory , Chittor
3) Milk products factory , Nandyala
4) Milk products factory , Proddutoor
5) Sangam Dairy, Vadlamudi
6) Milk Products factory, Vijayawada
7) Milk products factory , Nalgonda Rangareddy
8) Milk products factory , Karim Nagar Dairy

The marketing division of the federation is doing marketing of the milk

produced by the above units. Public relation advertisement, training are
controlled by the Joint Director (Traning & Marketing). The marketing wing
consists 38 members of employees presently.

MAJOR

DAIRY

PRODUCTS

MANUFACTURES

IN

INDIA

THEIR BRANDS
Company

Brands

Nestle

Milk-maid ceralac Milo, Sweentended condensed

Lactogen, & Everyday.

Major products

milk power,Malted
food, Milk powder, &
dairy whitener, Ghee &

Mild foods Ltd

Milk food

Ice cream.
Ghee & Ice cream

Smitukline Beechem ltd

Horlicks, Maltova,Viva

Malted milk food Ghee

Butter & Other Bady

Gujarath cooperative

Amul

market
Cardbury

milk foods
Butter Ghee & other

Bournvita

milk products.
Infant milk food malted

Britannia

Milk man

milk food
Flavoured milk Ghee,

Hj.Heinz Ltd

Farex,Vitamilk Glactose Milk powder Biscuits &

Ghee. Infast milk food,
malted milk food.

&

Organization of a dairy farm:

There are many activities involved in successful running of a
dairy farm . many one of these activities is as important as any other
for profitable dairy farming coordination of all these activities in a
dairy farm is known as organization of the dairy farm.

Management of Animals:
These successes of dairy depend upon the good health and well
being of the cow and buffaloes maintained in the dairy and their
production. The various aspects to be considered are:
Housing
Feeding
Breeding
Disease control.
Management of Labour:
Labour is becoming costly and scarce and hence organization is
becoming more difficult. The farm should be so planned that it shall
be possible to completely manage with family labour. Hired labour
should be minimum and used only for such operations as sowing,

harvesting etc., permanent labour if employed should be minimum but

provided with all facilities like housing and should well paid and
looked after so that they will work wholeheartedly.
Management of Equipment Small dairies may have less
equipment and machinery like chilling plant pasteurizing plant, tractor
trailer harvester, and such other agricultural equipments. These have
to be kept in good working condition so that all dairy and agricultural
operation will go on normally so that all dairy & agricultural
operations will go on normally and milk may be transported in good
condition for marketing.
Management of milk and milk products:
The profitability of a dairy depends upon the farm in which the
milk is disposed of. Fluid milk money than milk products. Selling in
cities fetches more money than in smaller towns. Milk transported to
longer distances may cost more on transport. There is a chance of
spoilage if more time is allowed between milking and sale unless milk
is pasteurized and preserved properly.

Record Keeping:

Record keeping is important in a dairy which will enable us to

know that actual position of the dairy in all aspects to enable us to
plan properly record may pertain to all aspects of dairying viz,
feeding breeding and management. It will enable the farmer to breed
the cows inn time to give balanced rations according to mild yield to
know the actual production of milk of individual cows , to know
profit and loss in the farm etc.,
Opportunities in dairy farming:
Dairy is one of the important side businesses of ninety percent
of the agriculturists of our villages. A cattle rearing are an age old
practice & almost all the land holding people keep one agriculture
operations.
Dairy enterprise is an efficient and lab our intensive business, so
that the shale family of the farmer is pressed into service & they are
able to produce some productive response from the limited holding,
utilizing agricultural by productive & wastes that will go to waste
otherwise. Both males & females & old and young can be usefully
Employed for different types of work in a dairy farm.

The by products of dairy industry like skim milk, when etc., can
be fed to ther livestock. The skim milk is of high value and can be
used for poultry and swin with more profits. Farmers who sell milk fat
in the form of butten & ghee produce skimmilk . This can be
effectively used in feding pigs and poultry since skim milk is an
excellent source of protein, minerals and vitamins. The dairy industry
can also provide various job opportunities to the millions of the rural
and urban population apart from providing the various opportunities.
Legal standards:
In India the various standards for dairy industry are formulated
by four agencies.
1) The Indian standards institution (ISI)
2) Central committee for food standards (CCFS)
3) Directorate of marketing & inspection (AGMARK)
4) Defenses services
These four agencies have there different spears of activities,
although all try to work in closest collaboration. The standards by ISI
are to be adopted on voluntary basis. The CCFS is statutary body
which not only lays down standards for food products including dairy

products but also enforces the same . In consultation of CCFS the

Govt of India., Ministry of Health frames prevention of food
adulteration rule under the prevention of food adulteration Act. The
current set of rules are known as prevention of food adulteration rules
1976 under AGAMARK scheme provision exists for grading ghee
only amongst the dairy products. The diffence services have their
separate standards for their on requirements.
Standardized milk is milk whos fat & SNF have been adjusted
to a certain predetermined level under PFA rules (1976).The
standardized milk for liquid consumption should contains a minimum
of 4.5 & 8.5 SNF through the country. The standardization can be
done by partly skimming the fat in the milk with cream separator or
by admixture with fresh reconstituted skim mill in proper proportions.
DAIRYING IN ANDHRA PRADESH
The program of dairy was initially started with the
commendable help of the United Nations international childrens
emergency fund (UNICEF), food & agriculture Org (FAO), Freedom
from Hunger campaign org of UK. These organization assisted a lot
of establishment of dairy units at Hyderabad & Vijayawada a in 1967

& 1969, respectively which led to pioneer dairy development program

in Andhra Pradesh lates a set of cooling & chilling centers have been
step to feed these gigantic units
The milk producers have been facing either a lot of problems in
the process of production & marketing of milk improper transport
facility poor technology ad absence of price part facility, poor
technology and absence of price particularly during flush period etc. It
was at this context the Govt of AP has viewed to constitute a dairy
development corporation. More than 3.5 Lakhs milk producers get
20cr Rs per Annual for supplying of milk of which 69% of total
benefits belongs to small & marginal farmers, agricultural lab our &
other weaker section of the rural community.
With all these efforts by APPDC & NEED today Andhra
Pradesh has an excellent potential for production with progressive
farmers who are more receptacle to the new technology & scientific
parties. The estimated milk production is 40 Lakhs liters per day. To
day a strong wave of white revolution is sweeping creating a new
hope of eliminating socio economic in balances. A.P is posed to be the
dairy land of India playing an important role on the National Milk

grid.With the implementation of operation flood II program in AP the

tamps of dairy development has gained a momentum proved a thrust
to cradicate poverty & unemployment in rural areas brought graters
awakening & confidence among the producers to manager their own
affairs through dairy cooperative of AP. The dairy federation is
marching a head with dairy cooperatives to herald a new era of
prosperity.
Financial Assistance:
The national cooperative development corporation *NCDC) has
been providing finical Assistance to dairy cooperatives for
organization medium & small sized dairy processing plants & milk
chilling centers . The corporation has sanctioned a total loan
assistance of Rs.6.33 Lakh for establishment of 29 cooperative dairy
units comprising 17 chilling centers & 12 cooling centers.
DAIRING INDUSTRY IN KRISHNA DISTRICT
Dairy occupies 2nd place in earning livelihood next to agriculture
in Krishna district, as the cattle wealth in this district is more. The
dairy development union after chaning different Mgt systems is now

stepping into cooperative sector to help the small & backward farmers
by making them members of the union.
Krishna district with its carge area claims notable place in
agricultural activities. It is a long time aptitude for the agricultural
farmers to possess dairy cattle along with cattle far agriculture. This
aspect has drawn the attention of the officials of UNICEF, FAO and
govt of India. After analyzing the dairy prospects, they expressed the
view that there could be bright future for dairy scheme in Krishna
district. Accordingly a survey was undertaken to explore that market
for surplus milk in 1960-61. This marks the first step in development
the dairy industry in the state.
DAIRY PLANTS OPERATING IN INDIA
Dairy plants
Cooperative
Private
Others
Tatal

Number

Capacity

2123
403
63
678

000 L/day
28394
32415
12170
72979

(Sources: company reports)

CHAPTER II
PROFILE OF THE ORGANISATIONS

DAIRY INDUSTRY IN KRISHNA DISTRICT:

Krishna District is on river an track of Krishna abutting Bay of

Bengal. It has a total area of 8727 sq kms. The major activity is
agriculture. It has 17.39 lakh acres of land under crop cultivation of
which 66% is irrigated. The human population is 39.54 lakhs. It has
972 inhabited villages. The literacy in the district is 41.71%. The
district is known for its quality cattle. In milk cattle population it
ranks second in the state. Buffalo is predominant milk animal.
Organized dairy in Krishna commenced in 1965 with integrated
milk project assisted by the UNICEF. A milk conservation plant is
1.25LLPD (lakh liters per day ) was commenced in April, 1969 at
Vijayawada.
The dairy industry in the district had its beginning under state
government as part of animal husbandry activity. Integration of dairy
industry into the department of animal husbandry took place
periodically in the name of different projects:
Integrated MILK project (1960)
Dairy development department (1971)
Andhra Pradesh Dairy Development Corporation (1974)

 A.P Dairy Development Co-operative Dederation (1981)

Realizing the milk production potentialities of the inversion

track, the Government of Andhra Pradesh and Government of India
with UNICEF assistance has established Integrated Milk project
Hyderabad-Vijayawada, linking the production and consumption
centers. Thus Krishna district has the distinction of starting organized
dairy activities by commissioning a milk chilling at PAMARRU in
February, 1965 the first of the type in Andhra Pradesh. Organization
of co-operative structure on ANAND PATTERN was initiated in
1981. Krishna district milk producers co-operative union limited got
registered in 1983. It took complete management of Dairy activities of
the Krishna District from February 1985.
At present, the district has 534 organized dairy co-operative
societies with over 92600 member producers. There are 300 milk
producers association centers too functioning besides co-operative
societies. The union collects milk from about 2,13,896 milk producers
covering 815 villages organized through 35 milk routes. District union
has 6 milk chilling centers one each operating at pamarru, Hanuman
Junction, Veerankilock, Gudlavallaru,Chilikalu and Tiruvuru with a

total processing capacity of 1.70 lakh liters per day . It has milk
products factory with the facilities to manufacture different milk
products.
The milk products factory at Vijayawada handles surplus milk
from all coastal districts. About 2.10 lakh kgs/day with peak touching
3.18 lakh kgs/day. The factory conserves fat in the shape of white
butter usually to the extent of 1000 M.Ts per year.
Union markets about 2, 00,000 liters/day market milk to 1 lakh
families in the district. It manufactures products like Ghee, Butter
Malai laddu,dates Khova, Butter Burfi,Chocolate Burfi, and
Doodhpeda, Ghee products, skim milk powder, UHT Milk
(TetraBrik). These products are manufactured in this dairy with the
brand name of VIJAYA are popular for its quality throughout the
nation. UHT milk has market at Bombay, Goa, Pune, Calcutta and
Hyderabad. New UHT products such as sterilized cream, slim milk,
Traders from counties like Singapore and Brunei paling orders with
the dairy for milk powder.

Union manufactures and market about 35 tons/day of cattle feed

besides 400MTS mineral mixture per annum. Dairy co-operatives in
villages have gradually development trading surplus and this aspect
coupled with government schemes resulting in establishing their own
buildings in 345 villages valued at Rs/- 2.2 crores.
An Aspetic packing station was set up in the milk products
factory to pack 50,000 liters of long the milk (UHT MILK) per day.
Union has also 2 cattle feed mixing plants with a total capacity of
50M.T /day. Plant to increase procurement to two lakh liters a day.
Vijaya dairy is the only unit exporting products to countries like
Malaysia.
Krishna milk union is a district milk producer co-operative came
into exiting in July 1983, registered KRISHNA DISTRICT MILK
PRODUCERS CO-OPERATIVE UNION LIMITED. It took over
the management going dairy activities Krishna district of Andhra
Pradesh during February 1985. Krishna milk union currently 815
functional dairy co-operations in villages and introduced from various
chilling centers and district routes.

RANKING OF THE DISTRICT IN ANDHRA PRADESH

1) Milk production . 2nd
2) Processing 3rd
3) Marketing .. 2nd

Krishna district has milk procurement ranging from 45,000 kgs to

2,00,000kgs.Per day from 1969 to 2014. The district being buffalos
concentrated has wide procurement fluctuations. It was considered
imminent to reduce the seasonal imbalance in milk production. New
programmers were drawn up. Induction of X bred cows has been
taken up since 1990 to increase milk production potentially. District
has very close animal health coverage by the animal husbandry
department.
The district co-operatives milk union provides the following inputs
to farmers for increased milk production.
Veterinary first aid facilities
Animal vaccines & medicines at subsidized prices
A.I.Facilities.
Breading bulls
Fodder seeds at subsidized rates
Premixed cattle feed
Cattle insurance at 2/3 subsidy.
Extension services.

PROCESSING:

Milk processing of milks it done by pasturing and chilling the

milk at certain temperatures. The fat % and chilling the milk at certain
temperatures, the fat% and SNF % is standardized accordingly for
various types of milk is sent to by products section to produce various
products.
PRODUCTION:

In the production section the milk and milk products are

produced the excess milk is converted into skim milk powder (SMP),
Butter to meet the demand to learn seasons.
SALES:

Indents received from various boots and parlors. Depending on

the indents the consolidated reports are raised. These reports are sent
to various sections. Reconciliation statements are prepaid according to
the indents and the details of stock delivery are maintained for various
parlors, boots and institution. Andhra Pradesh has prominent place in
the dairy of India. Dairy and milk supply has been given importance

in the five year plans of the state. Not only with a view has help had
the farmer to improve their income had it enabled.
HISTORY AND ESTABLISHMENT:

Andhra Pradesh has prominent place in dairying India. The

cattle wealth of Andhra Pradesh is established at Rs. 220 crores and
70% of total of milk products factory, Vijayawada was commissioned
an 11.4.1994.Milk products factory VIJAYAWADA is having the site
of 27.3 acres. At present the cost of UNICEF equipment and erection
is about 19.4 crores (1983-1984).
The Krishna district milk products factorys date of registration
is in 6.7.1983. Authorized share capital Rs.10,00,00,000, paid up
share capital Rs.48,12,00,000 members of societies registered 518,
number of societies affiliated.
In 1979-1980 machinery was established in processing sections
chiller capacity 80,000 liters capacity tanks. Now the above capacity
is improved chiller capacity.
Milk products factory, VIJAYAWADA was commissioned on
11.04.1969. This factory has the installing capacity of 1.25 Lakhs
liters per day in the first stage with provision for expansion of

3.50lakh liters per day in the second stage. Milk products factory,
VIAJAYAWADA has the distinction of handling milk to its capacity
in the second year operation. A part from handling milk to its capacity
in the second year operation. A part from handling milk Krishna
district, it also handled surplus milk received from district of
VISAKAPATNAM,EAST AND WEST GODVARI, PRAKASAM
AND NELLORE. The factory had pack holding during 1982-1983,
with a view of handling the increased surplus milk got from
NELLORE, PRAKASAM and EAST and WEST GODAVARI
DISTRICTS, a second spray drying plant with a latest design to
produce about 124MT of milk powder has been established and
commissioned during 1982.
The factory has a provision to make 8MT of the demand
from public will be converted into products. VIJAYAWADA in the
state during 1977 test was successfully conducted on manufacture of
infant milk food, based on the formulae provided by central food
technological research institute, MYSORE. Subsequently milk food
with the brand name of VIAJAYA SPRARY was introduced in
consumer pack of 1Kg and 1/2kg throughout the country. This milk

products factory, VIAJAYAWADA had the distinction of being first

public sector organization in the consumer packs. In addition to the
above milk powder is also being manufacture in the factory.
GROWTH OF THE FACTORY:

As an integral part of the above project the milk product factory,

VIAJAYAWADA WAS COMMISSIONED ON 11.04.1969. This
factory has got an initial handling capacity of 11,25,000 liters in the
stage with provision to handle 2,50,000 liters of liquid 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
officials.
INTEGRATED MILK PROJECTS:

A scheme viz., the integrated milk project, Hyderabad and

Vijayawada at a cost of Rs.4.35 crores has been setup to make full
utilization of the surplus milk of the area. Milk products plant at a
capacity of 1,25,000 liters per day in the first phase and 2,50,000
liters per day in the second phase at VIJAYAWADA RESPECTIVELY.
Milk product factory, VIJAYAWADA AREA OF SITE 27.3
ACRES, THE VALUE OF FACTORY BUILDING Rs.120 lakhs

money given by UNICEF for machinery Rs. 57lakhs cost of

investment on number of worker 265. At present yearly earnings are
Rs.56 crores and anuual turnover Rs. 60crores . In the year 1983-1984 the
annual turnover is about 19.4 crores and total staff is 2,064.
CHILLING CENTERS:

The VIAJAYAWADA milk products factory has set up six

chilling centers, which are given under center, have been producing
chilled milk for the composition of the various segments of the
consumers. Chilling centers use very successfully to milk products
factory. Following are centers in Krishna district under the control of
VIAJAYAWADA milk products factory:
Pamarru
Hanuman Junction
Veeranki lock
Gudlavalleru
Chillakallu
Tiruvuru

MILK DISTRIBUTION CENTERS:

Town sales (in Liters)

No.of selling boots

Daily

1321

1,89,921

Godavari

90

4,383

chillakallu

86

6,894

Tiruvuru

110

5,535

Pamarru

320

27,610

Viajayawada

SALES CENTERS:
VIJAYAWADA: RTC Bus stand super bazaar, Railway station milk products factory,
vastralatha, Vijaya dairy parlour (near Alankar theatre) Benz circle,
Sathyanarayanapuram, machavaram, patamata etc.

CAPACITIES:
Milk

2,00,000 liters per day

Ghee

5 tons per day

Butter

7 tons per day

Milk powder

5 tons per day

Refrigeration capacity

1.5 tone capacity

Stream generation

15 tones per 1 prt

Milk packing

1,25,000 packets per day

Chilling
Processing

1,50,000 liters per day

1,50,000 liters per day

TRANSPORT:

There are about 25 vheicles in transport organization, milk

products factory, Vijayawada.

Road tankers
4 tones of 15,000 liters capacity
4 tanks of 10,000 liters capacity
3 distribution vehicles for sales
6 inspection vechicles
In addition to these 25 vehicles are taken hire from private
transporters for distribution of milk. The milk feed to chilling centers
and far off places like visakapatnam Nellore and chittor is being
transported by the road tankers. It is also transported to all
metropolitoan cities of Delhi Mumbai, Calcutta and Chennai through
the insulated tankers.
RESEARCH AND VEVELOPMENT:

The India council of agricultural research has started a research

scheme during the period 1970-71 to under take research on milk
products. Under this scheme soft cheese, butter milk powder curd,
Doodh peda, ice cram mix, butter etc. are, manufactured.
NEED FOR EXPANSION:

With the introduction of the baby food, the milk handling

capacity has been reduced to about 80-85 thousand liters of milk in

view of the sugar content added in manufacture of the baby good.

Therefore it is proposed to expand the present plant by adding
additional buildings in the existing vacant area adjacent to the
transport section. This will enable the factory to handle 1.5 lakh liters
per day.
MANAGEMENT:

1) Management of the company shall consist of board of

directors chairman and managing director.
2) The chairman of the affiliated union enrolled as number.
3) Nominee of the government of Andhra Pradesh if the
government of Andhra Pradesh is a member.
4) Chairman of the board of directions shall over general
meeting. In case of this absence the meeting shall be
conducted by a chairman form amongst the members present.
5) The general body shall be called once a financial year with in
grater ending on 31st December. This shall be Annual
general meeting
6) A special general body meeting may be called at any time by
a majority vote of board of directors and shall be called with

one month at least 1/5 of the members of derivation or by the

registrar of cooperative societies.
PROVISION UNDER ACT:
1) Subject to such resolution as the general body may from time

to time pass. The execution management of the union shall consist of

not more than 17 members as detailed below.
a) 2 elected representative of affiliated 30 societies
b) 3 government nominees.
c) Registrar of cooperative societies of this nominee
2) Director of animal husbandry or his nominee.
3) Managing director, A.P dairy development corporation or his
nominee.
a) One to be adopted by the board from the experts in milk
business.
b) Nominee of financing agency.
c) As soon as the election of the members of the board over they
shall meet and elect a chairmen and vice-chairman who will hold
office for one year. The election and vice-chairman is to be held, in

the same manner every year immediately after the general body meeting in
which the raining vacancies of directors filled up
ORGANISATION CHART:
General Body

Board of Mgt

Managing Directors

Procurement & Input controller

Personnel officer

Marketing Manager

Quality

Production Manager

Stores

Plant Maintenance

MIS

Director (Finance)

APS

THE GENEARAL POWER DUTIES AND RESPONSIBILITES OF THE

MANAGING DIRECTORS ARE AS FOLLOWS:

He shall general control loan the administrations and business of

the federation.

 He shall power for and on be half of the federation to enclose

sign negotiates checks other negotiates on be half of the
federation. He shall also sign all deposits, receipts and operate
as accounts of the federation with any bank.
He shall allow credit to buyer with in limits fixed by the board
from time to time.
He shall make necessary arrangements for transport and storage
of dairy and allied produce.
He shall arrange to support training to the staff members of the
federation union and societies.
He shall appoint consultant or exports and fix their
remuneration.
BOARD OF DIRECTORS:

The board consist of the following:

Chairman of the affiliated union enrolled as members
Registrars of the cooperative societies
One nominee of the financing agency.
Managing director of the federation.

 3 nominees of the state Government representing interest dairy

development.
Any member nominated to the board may at any time resign
from his office by sending a letter to Government and such
registration shall come into effect from the date on which it is
accepted by the Government.
The Government shall nominate the chairman of that board time
to time. The secretary of the Government dealing with dairy
development shall be the vice-chairman of the board. All the members
of board expect managing director and chairman of the federation
shall be honorary.

MANAGING DIRECTOR:

The managing director shall be appointed by the Government

from time to time upon such terms and conditions as the Government
thinks fir and the Government extends such items as it may due
necessary and expedite.

STAFF POSITION OF THE COMPANY:

Department
Managing Director
Dairy Directors
Dairy Managers
Asst DairyEngineers
Quality control officers
Asst Dairy Managers
Fodder Development officers
Junior Engineers
Technical staff
Transport
Finance
Administration
Field staff
Others (Non Technical )
Total

No of Persons
1
2
8
8
1
22
2
8
111
31
39
117
88
375
803

KDMPMACUL OBJECTIVES:

Evolving long term policies to encourage and develop milk

production and productivity in the district. Achieving co-ordination
among various programmers in the district to optimize resource
utilization. Providing remunerative and assured market for the milk
produced by the farmers round the year.
Improving efficiency in milk collection, transport processing
and marketing with the emphasis on reducing the cost of operations at
very stage from emphasis on reducing the cost of operations at very

stage from rural farmer to urban consumer. Increasing in availability

of milk and development the market of milk products.
Development the manpower of the organization to reach
excellence in their working life and create a pro-active organizational
culture for achieving competitive edge. Consolidation and expansion
of co-operative structure with special attention to small farmers and
weaker section of milk producing community. Traders from countries
like Singapore and Brunei placing order with the dairy from milk
powder.

KDMPMACUL STRTEGY:

Milk procurement activities will be intensified for securing

increased share in existing marketable surplus. Concentration of milk
production enhancement programmers with special emphasis on
animal breeding, fodder development and animal health.
Marketing in the district will be intensified for better
remuneration, privatization beyond departmental level. Major strength
of union being aseptic technology emphasis on value added aseptic
milk products. To survive and grow in the emerging competitive

environment there would be more delegation of work across the

organization calling for accountability through well defined
parameters.
Productivity improvement by corporate restructuring with
change in managerial system to make people more system dependent
rather then individual dependent. Intensive training for all levels of
staff, which can really help to improve the functioning of
organization. Introduction of reward and punishment system.
Introduction of quality system under ISO: 9001-2000, L.S.O:
4001-2004 and HACCP certification.
MILK PROCURMENT IN MPF-VIJAYAWADA:

Milk produced twice a day from 600 villages in the among these
600 centers about 195 registered societies under ANAND PATTERN.
A good milk procurement infrastructure has been developed for the
last several years in the district. It is envisaged to open certain centers
to boost up milk production with ore and more active participation of
milk producers under operation flood II program and substantial
improvement in milk production is envisaged in near future.
MILK SUPPLY:

Milk products factory Vijayawada supplies milk in Vijayawada

and to near towns in liter and 1 liter sachets. Bulk supplies to
hospitals, hostals and other institutions besides regular market milk
supplies. Milk products factory, Vijayawada dispatches milk supplies
Milk products factory, Vijayawada dispatches milk to madras,
Hyderbad and Calcutta.
ORGANIZATIONAL STRUCTURE:

Organization structure is the basic frame of which the managers

decision making behavior takes important place. It basically deals
with relationships. It is the pattern in which various components are
interrelated or interconnected. This prescribes the relationships among
various positions since the positions are held by various people with
the organization. Organizational structure is the totally of both formal
and informal relationships. The organization structure involves the
following steps:
1) Identification of activates
2) Group activities
3) Delegating of authority.

In the KDMPMACUL organizational structure, chairman is the

head of board of directors. General Manager has various lands created
under him like plant manage, production manager, accounts officer,
personal officer, sales manager, medical officer, quality control officer
etc.,
Every manager delegates authority to subordinates. It is visible
that here is poor understanding and coordination among all
departments of the organization. This harmonious relationship
between the department leads to facilitate efficient management and
effective communication. Optimum use of organizational resource
and stimulating creativity in the organizational mechanism.
DETAILS AT A GLANCE:
THE KDM PRIDUCERS CO-OPERATIVE UNION LIMITED
1. number of villages covered
2. number of cooperative societies
3. number of milk routers
4.number of chilling centers
5.number of feed mixing plants
6.milk products factory area
7.value of factory buildings
9. value of other buildings and investment
10. date of commissioning of milk product factory
11. Total staff
12. date of formation of union
13. date of transfer of management of union

815
549
35
6
2
27.3 acres
Rs.120 lakhs
Rs.270 lakhs
11.04.1969
250
6.7.1983
8.2.1985

PACKING:
Milk is collected from collection point and is pasteurized and converted
into milk powder. As per the demand of the requirement the powder is mixed
with water and converted back to milk , churned and the quality controllers
check quality, and then approve the milk for packing quality controllers check
the quality , and then approve the milk for packing.
MILK AND MILK PRODCUTS:

Today KDMPMACU offers the widest spectrum of milk

products in India, under the brand name VIJAYA. These include
Ghee, Butter processed cheddar cheese and cheese spread, UHT milk
( std milk toned milk low fat, Flavored Milk (Merri Milk), Slim Milk
in Tetra packs, Sterilized cream , skim Milk powder , dairy Whitener,
Cooking Butter and ice cream. Several among these carry the
AGMARK, An attestation of quality by government of India and the
ISI mark of Bureau of India standards.
The brand VIJAYA connotes quality ad quality, which makes it a
trusted Name in millions of households across the country. In
addition, KDMPMACU also manufactures products such as sterilized
Flavored milk Pannier (indigenous unripended cheese) Doodh Peda
(desiccated milk sweet) and Buttermilk which is marketed through a

network of Vijaya Dairy parlours and a chain of retailers spread

across Andhra Pradesh.
The Dairy is equipped with the ISO 9001:2000 certification and
recently ISO 14001:2004 certification.

DIFFERENT PRODUCTS OF VIJAYA DAIRY:

GHEE:

Complete Milk Fat (99.7%)

Granular and White in color
Agmark Special Grade product (Govt.of India Certification)
Used as a cooking medium.
Shelf life of 6 months at ambient temperature
Hygienically manufactured and packed.
Pleasant flavor.
Rice source of energy.
GHEE PACKET

Complete Milk Fat (99.7%)

Granular and White in Colour.
Agmark Special Grade product (Govt of India Certification.)

 Used as a cooking medium

Shelf life of 6 months at ambient temperature
Hygienically manufactured and packed
Pleasant flavour
Rice source of energy.
COOKING BUTTER:

Has 76% Milk Fat, White in colour.

Can be made into Ghee a per your choice.
Needs refrigeration.
Pleasant taste.
Used also as a cooking medium.
U.H.T MILK:

Treated at Ultra High Temperature and aseptically packed.

Sterile, Bacteria free and can be consumed directly.
Needs no refrigeration.
Contains 4.5% fat and 8.5% SNF.
Stays fresh for 120 days.
Gives excellent and firm curds.

 Hygienically packed.
Natural taste with high nutritive value.
Packaging material absolutely impermeable and non-returnable
Available as a grocery item.
Homogenized.

SLIM MILK

Milk free from fat

Sterilized with U.H.T process and packed aseptically.
Needs no refrigeration.
Has 8.7% Milk SNF.
Shelf life of 4 months at ambient temperature
Low calorie diet milk.
Becteria free and can be consumed directly
Gives firm fat free curds.
SKIM MILK POWDER:

Manufactured by drying skim milk spray drying technology

after Preconcentration.

 Rich in Protein and Carbohydrates.

Constitute 3% Moisture, 35% protein, 52% Milk sugar and 1%
Fat.
Shield life of 12 months at ambient temperature.
Product is hydroscopic and should be stored in air-tight containers.
Solubility of 99.5%
BIS marked.
MERRI MILK

Sweetened flavored milk with 1.5% Fat and 9.0% SNF.

Available in Strawberry, Rasberry, Vanilla, Pineapple and
Badam flavors.
Sterile, Bacteria free
Needs no refrigeration.
Safe-life of 3 months.
Excellent health drink.
U.H.T Processed and aseptically packed Homogenized.
STERLIZED CRAM

Has 30% Milk Fat with added stabilized and emulsifiers.

 U.H.T processed and aseptically packed.

Need no refrigeration.
Shelf-life of 3 months.
Can be used coffee whitening whipping to be used desserts etc.
Nutritive and Fresh
Sterile, Bacteria free and no chemical changes.
Hoogenized.

DOODH PEDA

Made fro fresh milk

Desiccated sweetened milk product
Contains 20% Milk Fat.
Smooth, granular texture.
Shelf life of one week at ambient temperature.
CURD:

Made from standardized and pasteurized milk using bacterial culture.

Shelf life of 1 week under refrigeration.
Packed in food grade polypropylene cups.

 Pleasant flavour.
PANNER

Coagulated milk product made from pasteurized milk.

Rich in protein.
Shelf life of 1 week.
Needs no refrigeration.
Used as an additive in various vegetarian and non-vegetarian dishes.

1.10 SERVICES OFFERED TO THE CONSUMERS:

1) Offering wide range and milk products suiting to changing needs.

a) Varieties of pasteurized milk offered for supply:

Viajaya gold (fat 7% SNF 9% full cream milk)
Viajaya Special (fat 6% SNF 9% full cream milk)
Viajaya Premium (fat 4.5% SNF 8.5% standard milk
fortifiedwith Vitamin A.
b) Range of UHT processed milk products with shelf life of 4
months:

 UHT processed standardized milk in 200ml and 1000ml Tetra

Brick pack.
Sterilized cream In 200ml Tetra Brick Pack.
Flavored milk (LASSI) in 200ml Tetra Brick Pack.
c) Range of fresh milk products:
Curd (100ml, 200ml and 500ml cups)
Lassie 200ml Poly packs.
Buttermilk 200ml Poly packs
Panner 100gm, 200mg, 500mg, and 1Kg packages.
Doodh peda 25gm, 250gm, 500gm and 1Kg Packages.
Milk cake 250gm, 500gm and 1Kg packs.
Kharjura Kova 250gm, 500gm and 1Kg packs
Kharbhuja 200ml pack.
Kulfi Badam 200ml pack
Badammix power 200grs packet
Gift pack 450gms and 900gms packet
Milkey Mango magic 200ml and 1000ml packages.
d) Range of other products:

Vijaya Ghee consumer tin packs of Kg, 1Kg, 2Kg, 5Kg, 15Kg, and in poly
pack of 200ml and 500ml.
Skimmed milk powder in Kg, 1Kg and 25Kg packs.
Cooking butter in 500gms and 20 Packs.

2) Special discount to intuitional buyers on purchase of milk in bulk quantities

in loose condition in cans. Supply of milk to consumers on purchase of monthly
milk cards. Round the clock availability of milk products through 250 cold
chain point in the district.Conduction consumer education camps to create
awareness. About quality Of milk and milk products. Free supply of

chilled drinking water to parties buying more than 200 liters of milk
on special order.
SWOT ANALYSIS OF KDMPMACU
Strengths:

Milk production potential in Krishna district is substantial

Ability to handle perishable product milk
Adequate infrastructural facilities available
Availability of well experienced professionals.
Excellent brand value for VIJAYA

 Ability to meet any consumer demand for milk and milk

products.
Ability to offer best quality long life products.
Established bondages with farmers.
Access to development funds and grants.
Access to other co-operatives.
Vijaya Dairy is the only unit exporting milk products to
countries like Malaysia.

WEAKNESS:

High fixed cost occupying 15% of business turn over.

Milk and milk products are high priced loosing competitive edge.

Process/product manufacturing facilities and outdated. Lack of

modern facilities.
Work culture and compatible with growing demand for
customer service.

 Employee skills at various levels require up gradation

High ratio of class 4th staff.
Business systems and modern management culture is yet to be
adopted.
Managers lack business experience.
System moves very slowly; due to lack of proper delegation all
things seem to wait for the chief executive.
OPPORTUNITIES:

Responsive milk producer base

Good public image
Emerging trends of increased spending on foods
Rapid utilization.

Growing food service sector.

Responsive state government
Pattern of increased spending on foods
Increased purchasing capacity of middle class.
Export opportunities for long life aseptic milk.
Voluntary retirement scheme to prune man power strength.

THREATS:

Intense competition in liquid milk market

Entry of organized private sectors in dairy business.
Increasing competition for the marketable surplus milk in rural areas.

Employees Resistance to change.