The Key Functional Areas

Procurement and Inputs:

Union is procuring approximate 200000 Litre milk per day. For this Union's contract vehicle is plying approximate 7500 Km/day 65 numbers routes are in operation. In case of Societies not falling in the regular route requiring diversion, resulting in additional cost, Union will either reimburse @ Rs.1 per litre of milk to those Societies for delivering milk in the truck route or will recover the excess cost over and above Rs 1 per litre from the concerned Societies. Union will not encourage sub centres. But will collect milk from sub centres enroute and will recover the excess cost if any for collecting milk from sub centres if deviating from the normal route is required for collecting the milk . Milk collection route contract is awarded annually by collecting competitive offers.

Union is going for quality improvement of raw milk by installing milk coolers in Societies. At present 41 Nos of coolers are in operation. 20 nos of coolers will be added before December 2009. Government of India is financing 75% cost for installing coolers. Rs.10 crores has already been sanctioned for this. Union will meet all expenditure for operating the coolers in Societies.

Input wing is responsible for health care, insurance, genetic upgradation, nutrition, production enhancement, etc.


Union is selling 4.5 lakh litre milk per day through 5000 agents.70 nos of milk distribution routes are engaged for milk distribution covering 10,000 Km/day. Milk distribution contracts are awarded bi-annually.There are 25 No of wholesale agents for distributing its products other than milk. Insulated vehicle are engaged for all long distance routes in order to maintain cold chain. Agents are provided with Puf boxes for storing milk. Sales Promotion, advertisement and customer relations are responsibilities of this function.


Production Department is responsible for the processing of milk, standardization, packing and storage and quality maintenance. It is also responsible for production of various products, packing and storage.


Maintenance Department is responsible for the operation and maintenance of plant and service machinery like boiler, refrigeration, effluent treatment, stores & purchase, etc.

Finance and Accounts:

Finance and Accounts Department is responsible for fund managements, accounting, auditing, etc.

Quality Control:

Quality assurance function is responsible for continuous quality improvement, ensuring that products marketed as per PFA standards, testing quality of raw materials, packing materials, in process materials and finished products.