The design strategy is followed by the dairy management is the key to success for Mulukanoor Dairy. The key design features that made a small beginning such huge success are.
- Ceiling on the procurement distance: By keeping a limit of 30 Kms on the maximum distance of the village where milk is to be procured from the dairy, we have ensured lowest possible cost per litre of procurement.
- Target on Smaller cities: We are able to capture very good market share by concentring on mid sized cities and smaller municipalities around Mulkanoor like Warangal , Siddipet, Karimnagar, Mancherial and Godavari Khani.
- Initial Product portfolio: A product portfolio limiting to marketing just milk, curd and buttermilk helped us ensure daily money inflows back from the market easing out working capital requirement.
- Local Human Resource: The staff is employed from within the Union villages resulting in less resource cost per litre compared to industry standards.
- Ensuring higher stakes of members: We have institutionalised patronage linked compulsory development deposits at the rate of 5% of every milk bill that the member realizes.
- Systematic institution building process: Institution development and capacity building of the members was taken up systematically for a period of 18 months before the launch of dairy.
- Minimum performance criteria for members and leaders: Standards for minimum performance of members and leaders were set and performance is being measured accordingly.
- Surplus Distribution: The Surplus distribution is done to the members on the basis of total transactions with the cooperative.