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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.

  1. 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.
  2. 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.
  3. 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.
  4. Local Human Resource: The staff is employed from within the Union villages resulting in less resource cost per litre compared to industry standards.
  5. 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.
  6. 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.
  7. Minimum performance criteria for members and leaders: Standards for minimum performance of members and leaders were set and performance is being measured accordingly.
  8. Surplus Distribution: The Surplus distribution is done to the members on the basis of total transactions with the cooperative.