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1.1.

Introduction to the Study


Each and every organization has its own importance in the economic wealth of the nation. Different organization meets different needs of people by offering different products and services. Due to globalization, the world has changed into a global village. In this fast changing business scenario, it is imperative for every entrepreneur to have a vivid understanding of the functional application of the new age business. As a part of the academic curriculum each student has to undertake an organizational study to get a practical exposure. An organization study implies that a comprehensive and systematic approach adopted to get familiar with the organization structure, staffing process as a whole. The major objectives are to determine if the staffing levels are appropriate and if the structure of management is serving the needs of the organization. It is the examination structure, process and practices and how these in terms shape social relation and create institution that ultimately influence people. The study will also give the management trainee an opportunity to interact with the people working in organization and to internalize their good qualities. Organization studies involve careful study about how people inside the organization interact with one another and how they can be made better to communicate their concerns. Various methods are used in organizational studies and there include multiple regression, time series analysis, meta-analysis and non-parametric statistics to name a few. Basically it involves the study of individual as well as group interaction inside an organization. There are many factors come into play when people interact with each other not just as individuals but as a team as well. It is very important from trainers point of view to know how a problem is tackled by people working in an organization. The major benefit of study is that operational efficiency and service delivery can be enhanced through improved staff utilisation and imparting relationship.

1.2. Scope of the Study


This study was conducted by collecting information about the various activities and services provided by the organisation. The various departments were studied as to how they work and together move towards achieving the organisational objectives. The data in the report includes both primary and secondary data.

1.3.Objectives of the Study


This study was conducted with the following objectives:

1. To study the organization structure of KKR Group (NIRAPARA) 2. To study the various departments and their working in the organisation. 3. To get a taste of working in a business environment around professionals. 4. To understand the culture in the organisation. 5. To study the relationship between employees and the management in the organization.

1.4 Methodology
The report has been prepared by collecting information through various methods such as personal interviews, the company intranet, various sources from the internet, annual reports etc. Study was descriptive and analytical in nature .It mainly includes 1.4.1Primary data: a) Through observation or direct communication with respondents b) Method for collecting primary data is observation method, interview, schedule etc

1.4.2 Secondary: Main source is company records such as annual report, departmental procedures, company brochures and website

1.5 LIMITATION OF THE STUDY


a) Time was inadequate for familiarizing functions of all departments b) Busy employees-work, so they could not give more information c) Lack of availability of secondary data from published journals and reports

Chapter 2- BUSINESS ENVIRONMENT ANALYSIS


2.1. Analysis of the remote external environment In todays world business is vitally affected by the political, economic, social, legal, and technological factors. These factors collectively form business environment. Business environment, as such, is the total of all external forces, which affect the organization and operations of business. The environment of an organisation has got internal, operational and general lives managers must be aware of these three environmental levels and their relationship and importance. The term 'business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affect the business enterprise. It implies all external forces within which a business enterprise operates. Business environment influence the functioning of the business system. Thus, business environment may be defined as all those conditions and forces which are external to the business and are beyond the individual business unit, but it operates within it. These forces are customer, creditors, competitors, government, socio-cultural organizations, political parties national and international organizations etc. some of those forces affect the business directly which some others have indirect effect on the business. Business environment as such are classified into the following three major categories, they are:

Internal environment Operational environment General/external environment

Both internal and operational environment are the creation of the enterprise itself. The factors of external or general environment are broad in scope and least controlled and influenced by the management of the enterprises.

Economic environment refers to the aggregate of the nature of economic system of the country, the structural anatomy of the economy to economic policies of the government the organization of the capital market, the nature of factor endowment, business cycles, the socio-economic infrastructure etc. The successful businessman visualizes the external factors affecting the business, anticipating the prospective market situations and makes suitable to get the maximum with minimize cost. For the rice milling industry economic factors does not affect the business very much. Rice is an essential commodity and therefore there will be demand for it always. The social dimension or environment of a nation determines the value system of the society which, in turn affects the functioning of the business. Sociological factors such as costs structure, customs and conventions, cultural heritage, view toward wealth and income and scientific methods, respect for seniority, mobility of labour etc. have farreaching impact on the business. These factors determines the work culture and mobility of labour, work groups etc. For instance, the nature of goods and services to be produced depends upon the demand of the people which in turn is affected by their attitudes, customs, so as cultural values fashion etc. Socio-cultural environment determines the code of conduct the business should follow. The social groups such as trade unions or consumer forum will intervene if the business follows the unethical practices. The political environment of a country is influenced by the political organisations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups etc. political stability in the country, foreign policy, Defense and military policy, image of the country and its leaders in and outside the country. The political environment of the country influences the business to a great extent. The government of the country supports Indian rice milling industry and helps in its development. Legal environment includes flexibility and adaptability of law and other legal rules governing the business. It may include the exact rulings and decision of the courts. These affect the business and its managers to a great extent. Time to time the rules governing Indian rice mills have changed but it has only helped them to develop
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The business in a country is greatly influenced by the technological development. The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. Technological environment influences the business in terms of investment in technology, consistent application of technology and the effects of technology on markets. In India, advancements in automation and information technology have posed the challenging situation for the organisation in future.

2.2. Industry Profile Rice is a grain belonging to the grass family. It is related to other grass plants such as wheat, oats and barley which produce grain for food and are known as cereals. These are many unproven mythological tales related to origin of rice, through historians hold little or no stock in any. Rice cultivation is considered to have begun simultaneously in many countries over 6500 years ago. Rice has been cultivated in china since ancient times. Chinese records of rice cultivation go back 4000 years. Most believe the roots of rice come from 3000 BC in India, where natives discovered the plant growing in the wild and began to experiment with it. Cultivation and cooking methods are thought to have spread to the west rapidly and by medieval times, southern Europe saw the introduction of rice as a hearty grain. In several Asian languages the word for rice and food are identical African rice has been cultivated for 3500 years. In the Middle East, it started around 800 BC. Rice spread out in Italy and France after the middle of 15th century, later propagating to all continents during the great age of European exploration. In 1694, rice arrived in South Carolina, probably originating from Madagascar. The Spanish brought rice to South America at the beginning of 18th century. Rice cultivation has been carried into all regions having the necessary warmth and abundant moisture favorable to its growth, mainly subtropical rather than hot or cold. Today rice cultivation is the principal activity and source of income for millions of households around the globe and several countries of Asia and Africa are highly dependent on rice as a source of foreign exchange earnings and government revenue.

2.2.1. Global Scenario Rice is the second largest produced cereal in the world. At the beginning of 1990 s annual production was around 350 million tones and by the end of the century it had reached 410 million tons. Production is geographically concentrated in western and eastern Asia. Asia is the biggest rice producer accounting for 90% of the worlds production and consumption of rice. China and India, which account for more than one third of global
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population supply over half of the worlds rice. Brazil is the most important non-Asian producer followed but United States. Italy ranks first in Europe. Rice is far the most economically important food crop in many developing countries, providing two third of the calorie intake of more than 3 billion people in Asia, and one third of the calories intake of nearly 1.5 billion people in North America and European union, rice consumption has increase due to food diversification and immigration. In the last two decades the per capita rice consumption increased at various rates ranging from 2.4% per year in Italy and 8.2% per year in UK. The worlds major rice producing countries including the two most populous nations china, India have emphasize the importance of continuing to develop new rice varieties to guarantee Asias food security and support the regions economic development. Today rice is grown and harvested on every continent except Antarctica where conditions make its growth impossible. The majority of all rice producers come from India, china, Japan, Indonesia, Thailand, Burma and Bangladesh. Asian farmers still account for 92% of words total rice production. More than 550 million tons of rice is produced annually around the globe. In the USA farmers have need successfully harvested rice for more than 300 years. There are thousands of strains of rice today including those grown in the wild and those which after cultivated as a crop. The worlds top ten rice producing countries are China India Indonesia Bangladesh Vietnam Thailand Myanmar Japan Philippines Brazil
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Some important facts about rice in global scenario are Global rice production in the recent years has fluctuated between 375-400 million tons. Consumption at around 410 million tons has been above production in the recent years Global ending stocks, which had average above 120 million tons in the 1990s is currently getting reduced to 80 million tons Asia is the largest rice producer, accounting for 90% of worlds production and consumption of rice. Per capita rice consumption has declined in recent years in many of the wealthier rice consuming countries such as Japan, republic of Korea and Thailand because rising incomes have enabled people to eat more varied diet Although rice is widely grown and consumed less than 6% of world production is traded annually. Major importing nations of rice are West Asian countries and African countries. Apart from these countries like Japan, Malaysia and Brazil also figures in top 10 importing countries. Though rice is cultivated largely in Asia its export mainly originates from other continents. Major rice exporters are Thailand, united states, Pakistan, Vietnam, India, Italy, Uruguay, Australia, china and Argentina. The western countries are not major producers, but at the same their consumption is negligible. Thus a significant portion of their produce is exported.

2.2.2. Indian Scenario Rice is grown in many regions across India. For about 65% of the people living in India, rice is a staple food for them. Rice is essential to life in India. It is a part of nearly every meal, and it is grown on a majority of the rural farms. Some important facts about rice in Indian Scenario are as:
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Agriculture is the main source of income for families in India. Farms cover over half the land and almost three-quarters of that land is used to grow the two major grains: rice and wheat. India is the second leading producer of rice in the entire world, preceded only by China. India's annual rice production is around 85-90 million tons. Annual consumption is around 85 million tons. In India, Rice is cultivated in both seasons - winter and summer. West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar, Orissa, Assam, Karnataka and Haryana are the major producing states. More than 50% of total production comes from the first four states. Food Corporation of India purchases around 20 to 25% of the total rice production in the country both under levy from the rice mills and directly in the form of paddy from the farmers at Minimum Support Prices announced by the Govt. More than 4000 varieties of rice are grown in India. India is the world's largest exporter of Basmati rice to Saudi Arabia and other Middle East Countries, Europe, and the United States. India has the potential to export one million tons of Basmati rice. Major destinations for Indian non-basmati, white/parboiled rice are Bangladesh, Indonesia, Philippines, Nigeria, South Africa, Ivory Coast, and other African countries.

2.2.3. Regional Scenario Rice is the staple food of Keralites from time immemorial. It has been an essential ingredient of a 'Malayalees' diet, especially for the old and middle aged generation. Even

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the new generation in Kerala and abroad promote; Malayalee food mainly made of rice and its different forms. Paddy is the main crop in Kerala. Earlier paddy processing was considered as a house hold business. Paddy processing was done by the female members of the family. As time passed, with the increase in production and productivity as well as the change of joint- family system to nuclear family system, rice mills on modern began to flourish. With the introduction of high -yielding varieties which in turn resulted in a massive increase in productivity led to the emergence of middle men in paddy trading. Bulk purchases were made by them on behalf of the producers and products were flown from production centres to the trading centres this in turn necessitated the establishment of sophisticated modern rice mills. The growth of rice mill industry can be traced to several distinctive phases. Before 1955 - paddy was boiled in small quantity in small pots or utensils and dried in sun light. 1955 to 1970 - motorized hullers have been used for milling paddy. They used mild steel vessels for parboiling and dried in yards under sunlight. 1970- 1990 - Since 1970 commercial type small rice mills started in Kerala with an average production capacity of 3-4 metric tones per day. They parboiled paddy in mild steel boxes and dried in yards under sunlight. They milled this paddy in motorised hullers. These conventional type mills could not make quality rice as they did not have adequate paddy cleaning, parboiling, drying and milling facility. More over these mills remain closed during seasons of rainfall as they were depending on drying yards and sunlight for drying. Their output were not polished, and includes parts of mud, stone, husk, bran and other foreign elements. 1990 onwards - Since 1990 modernisation and mechanisation of parboiling and drying system of paddy emerged

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2.3. INDUSTRY ANALYSIS


2.3.1. Industry Key Players There are many modern rice mills in and around Kerala which sort and sell rice in different brand names. The key players in the industry are Nirapara Periyar Pavizham rice Double horse rise Mayil rice Nallari rice Avani rice

2.3.2. Competitor Analysis The need of the food products by the house holds is increasing , so the competition will also increase the customers want more quality products in low price with easy availability. The major competitors for Nirapara are Eastern Periyar Pavizham (only in rice) Double horse rise Gayathri (only in rice) Saras Melam Aachi masala (outside Kerala) Sakthi masala (outside Kerala) Avani rice Nallari rice
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Market share The competition is very high in the market, but still Nirapara has got a very good market share in the industry.

Brand name Nirapara Periyar Pavizham Double horse Other local brands

Market share 25 15 12 10 38

Table 2.1

25 38 Nirapara Periyar Pavizham Double horse 15 10 Other local brands

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Fig 2.1 market share

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3.1. Overview of the Organization


3.1.1. Background The K.K.R group was set up in 1976 by Mr. K.K. Karnan, a man who set out with the vision to bring quality rice into the traditional homes of Kerala in South India. A venture which started out with traditional method of boiling, sun drying and milling, grew into one of the most modern rice processing houses in India with the latest world-Class technology today. KKR Mills boasts of a state- of the-art plant with the highest levels of technology in the world, ensuring products that meet the most stringent quality and hygienic standards. The K.K.R group is now all set to become a name to reckon within foods. The group has plans to set up a food park with facilities to process and manufacture a wide range of food products like spices, pickles and other products for world markets. The factory of KKR Mills is located in the green, pollution-free Okkal Township, near Kochi in Kerala in South India. This facility is equipped with the latest technology in the world for every aspect of processing of paddy-right from destoning, cleaning, drying, dehusking, bran-removal, polishing and finally sorting. This infrastructure of around 25 crore of rupees in one of the largest in India. KKR Mills is the only rice mill in South India to use the Z-sortex machine capable of optical inspection for quality control. This machine scans every grain of rice and removes discolored, broken and immature rice, ensuring that only rice that meets the specification calibrated in the computer is selected for packaging. The result - beautiful rice of even size, color and bran that is a feast for the eyes and a wholesome meal. Nirapara - The brand name, in which KKR Mills markets rice, is today the largest selling brand in Kerala and has become a household name.

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3.1.2. COMPANY VISION, MISSION AND VALUES VISION The KKR Group of companies has a great vision of becoming a leader o fast moving consumer goods and products. Its vision is to provide total customer satisfaction through continuous improvement in production process and services MISSION The mission of the company is to deliver high quality food products that set themselves apart from others in taste and value KEY VALUES OF THE FIRM High quality products Customer orientation Good relationship between management, employees and workers

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3.1.3. PRODUCTS AND MARKETS


The KKR Group is now all et to become a name reckon within foods. The group has plans to set up a food park with facilities to process and manufacture a wide range of food products like spices, pickles and other products for world markets. RICE Nirapara rice is available in a wide range of varieties that suits various tastesbrown rice and white rice in round-grained and long grained varieties. Besides these there are specialty rice varieties for the varied traditional uses of rice in kitchens all over the world. Rice being the staple food from breakfast to dinner and dessert, Nirapara s range of rice caters to every applications of rice in the lives of the people especially of south India. Nirapara rice is the only rice processed using the nutria-select process which ensures that only the best quality rice with the optimum value of vitamin B is selected b the Z sortex machine and pack. Nirapara rice comes in neat porous traditional jute bags that help air circulation that is essential to enhancing shelf life, keeping it fungus free. The Nirapara rice ranges are,
Sl no. 1 2 3 4 5 6 7 8 Name of the product Single Matta Rice Rose Matta Rice Payasam Rice Idly Rice Ponni Rice Jyothi Rice Jaya Rice Cherumani Rice

Table 3.1

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RICE FLOURS Breakfast is very important meal in every home. A wide range of exotic traditional rice based breakfast items are very popular in even modern homes. Gone are the days when women would painstakingly powder and grind rice to make the batter for breakfast items like Idli. Dosa, Appam etc. today, Nirapara s readymade rice powders have found a firm place in kitchen shelves across the world. Nirapara has rice flours suitable for a wide range of breakfast items. The various rice flour products are

Sl no. 1 2 3 4 5

Name of the product Idly powder Appam powder Dosa powder ChembaPuttu powder Puttu powder Table 3.2

WHEAT PRODUCTS KKR Mills also process and markets wheat products for house hold use under the brand NIRAPARA. All Nirapara products carry with it the assurance of quality Broken Wheat Rava

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SPICES KKR Food products, a company set up in October 2002 is all set to bring out wide range of food products into the markets under the Nirapara brand umbrella. The first sets of products to enter the market are spices and pickles under the brand name Nirapara silky. Nirapara silky spice powders are made from the best quality spices sourced from all over the country and process and packed in a state of the art facility that meets the highest standard of hygienic. The spices are available as both pure spices and ready mixes that are used to make the popular south Indian curries.

Sl no. 1 2 3 4 5 6 7 8 9 10

Name of the product Chilly Powder Coriander Powder Turmeric powder Sambar Powder Rasam Powder Chicken Masala Fish Masala Meat Masala Curry Powder Pickle Powder

Table 3.3

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PICKLES Pickles are important item in practically every Indian meal, traditional pickle recopies using unique spice mixing and vegetable oils are made with a wide variety of vegetables. These pickles are manufactured in a state of the art facility meeting international standards of hygiene and purity. Only the best quality materials are sourced. The pickles are made under the supervision of experts. Nirapara Silky range,

Ginger Pickle Cut Mango Pickle Hot & Sweet Lime Pickle Hot Lime Pickles Bitter gourd Pickle (White)

Garlic Pickle Kadukumango Pickle Gooseberry Pickle Bitter gourd Pickle(Red) White Lime Pickle Vadukapuli Lime (white) Pickle Wild Mango Pickle Irumbenpuli(Karambula) Pickle Tindora Pickle (Kovakka) Coconut Chutney

Mixed vegetable Pickle

Vadukapuli Lime (Red) Pickle

Tender Mango Pickle

Hot and Sweet Mango Pickle Lololica (Scramberry)

Table 3.4

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3.1.4. AWARDS, RECOGNITIONS AND CERTIFICATIONS ISO 22000-2005 Certification ISO 9001-2000 Certification HACCP Certification (Hazard Analysis Critical Control Point)

3.1.5. STRATEGIC PLANS PROGRAMMES AND LONG TERM OBJECTIVES


NEW TECHNOLOGY The management is all set to enter the food processing industry on a large scale, bringing in the world latest technology and machines in every new area of the business. Attention to purity and hygiene standards that meet the highest requirements is the focus of the group. NEW MARKET Today KKR group has distribution in 15 foreign countries. The company is planning to enter into new countries. The day is not far before NIRAPRA to make a mark in food processing in the international markets.

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3.2. ORGANIZATION STRUCTURE


3.2.1. CORPORATE STRUCTURE Chairman

Vice Chairman

General Manager

Purchase Manager

Marketing Manager

Production Manager

HRD Manager

Finance Manager

Store Keepers

Area Sales Manager

HR Executives

Security Officer

Receptionist

Paddy Inspector

Milling Supervisor

Maintenance in charge

Cost Accountant

Cashiers

Bank Section

Fig 3.1 Organisation structure of Nirapara


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3.2.2. BUSINESS AND DEPARTMENTAL STRUCTURE

PURCHASE DEPARTMNET

Purchase Manager

Store Keeper

Store Keeper

Helpers

Helpers

Fig 3.2 purchase department structure of Nirapara

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MARKETING DEPARTMENT

Marketing Manager

Area Sales Manager (South)

Area Sales Manager (Central)

Area Sales Manager (North)

Territory Manager

Territory Manager

Territory Manager

Sales Executives

Sales Executives

Sales Executives

Fig. 3.3 Marketing department structure Nirapara


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PRODUCTION DEPARTMENT

Production Manager

Paddy Inspector

Maintenance in Charge

Electrical in charge

Packing Supervisor

Milling Supervisor

Brain packing & loading Mechanics

Electrician

Paddy packing & loading

Plant Operators

Rice Packing Husk packing & loading

Sortex Operators Packing Section

Parboiling Operators

Milling Operators

Boiling Operators

Fig 3.4 production department structure Nirapara


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FINANCE DEPARTMENT

Finance Manager

Cost Accountant

Cashier

Banking Section

Accountant

Assistant Cashier

Fig 3.5. finance department structure Nirapara

HUMAN RESOURCE DEPARTMENT HR Manager

HR Executives

Receptionist

Security Head

Helpers

Fig 3.6 HR department structure Nirapara

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3.3. FUNCTIONAL ANALYSIS


3.3.1 PURCHASING DEPARTMENT The purchase department plays a very important role in organization because purchasing has its effect on every vital factor concerning the manufacture, quality, cost, efficiency and prompt delivery of goods to customers. In NIRAPARA there is a centralized purchasing system, i.e. all purchasing functions are done through one department. Purchasing will be seasonal purchases and daily purchases. Seasonal purchases include purchase of paddy, Lemon, Chilly, Turmeric etc. Daily purchase includes machine parts, office materials and other materials for the day to day needs. Objectives of Purchase Department To make continues availability of materials in the company To make purchases at the most economical prices To serve as an information centre on the materials knowledge relating to prices, sources of supply, specific mode of delivery etc. To make purchases in reasonable quantities To purchase proper quality of materials To develop good supplier relationship

Functions of Purchase Department What to purchase? When to purchase? Where to purchase? How much to purchase? At what price to purchase?

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Key persons Purchase Manager The major responsibilities of the purchase manager are Check whether there is continuous availability of raw material Provide better control on purchasing power Check purchase requisition of raw materials Select suitable supplier based on terms and conditions Preparation of purchase order Receiving and inspecting raw materials Checking and passing of bills for payment

Store Keeper The major responsibilities of the store keeper are Receiving the stores correctly Entering all receipt regularly in the bin cards Keeping every item of stores in its allocated bins Ensuring that materials are issued only to those who present duly signed requisition note Ensure that stock do not exceed the maximum level Preventing unauthorised persons from entering into the stores Carryin out a regular review of items in the stores

PROCEDURES 1. Receiving the purchase requisitions 2. Exploring the sources of supply and choosing the supplier
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3. Preparation and execution of purchase order 4. Receiving and inspecting material 5. Checking and passing of bills for payment Receiving the purchase requisitions Purchase requisition is a form used as a formal request to the purchase department to purchase raw materials. The requisition is prepared by the store keeper and approved by an executive. The requisition is prepared in triplicate, one to purchase department second to store keeper and the third one to authorizing executives. Exploring the sources os supply and choosing the supplier Source of supply of raw materials are selected after the receipt of the purchase requisition. through the tender procedure. Purchasing order After choosing the supplier, the purchase department prepares a purchase order for the supply of stores. The order is the written authorization to the supplier to supply the particular materials. Receiving and inspecting materials The materials are inspected and the goods receiving clerk will enter the details of the materials. The store keeper again checks the materials after this. Checking and passing of bills for payment When the invoice is received from the supplier, it is sent to the stores accounting section to check both the authenticity as well as the arithmetical accuracy. The quantity and price mentioned in the invoice are checked with reference to stores received note and the purchase order Quotations are invited and the suppliers are selected

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3.3.2. PRODUCTION DEPARTMENT Production department deals with the process of producing a product or service. It includes physical commodities used to manufacture the final product. Manufacturing is understood to refer to the process of producing tangible goods as well as intangible goods. In Nirapara, there is no separate department for research and development but 3 staffs are working for the research and development of new innovative products. The capacity of rice production is 144 tons per day in 3 shifts. KKR group of companies operates their production in three places Production Unit Place Product Production / month KKR mills Okkal Rice, Spices, Pickles SN rice mills KKR flour mills Okkal Okkal Rice Flours Rice Rice 740 tons 250 tons 750 tons 95 tons 500 tons

KKR Agro mills Chelamattom Karthika Mills Kanjoor

Table 3.5 production units

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800 700 600 500 400 300 200 100 0 KKR Mills SN Rice KKR Flour KKR Agro Karthika Mills Mills Mills Mills Production per month

Fig 3.7 production units and capacity Functions of the production department Assure the purchased raw materials are conforming to the purchase order and specification Establishing points of inspecting test at selected points in the production process. Evaluate and approve manufacturing equipment process, testing and testing equipments Perform inspection and tests data and provide information on process and product quality level Control the handling, preservation and packing of material and equipment from the receipt through shipment of the final product Responsibilities of the key persons in production department Production manager

Plan the production as per the target allotted for the month Check and verify the process sheet Prepare weekly wage list and ensure the payment

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Prepare monthly salary statement and handover it to the accounts department Maintain attendance register for the production staff Ensure leave sanction of employees and forward it to the HR department Conduct daily stand up meetings

Paddy inspector

Inspect paddy when load arrives Supervise loading and unloading of paddy Proper storage of husk

Mechanic Head

Ensure maintenance of all mechanical equipments Maintain a register for schedule of maintenance Maintain a register for oiling and greasing Maintain a register for repairs Maintain all spares in the locker room

Milling supervisor

Supervise milling operations Ensure all out sourced products are checked, packed, stocked correctly Ensure all out sourced items are received at the respective go downs Inform the purchasing department regarding the position of stock

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Electrician head Ensure that the electrical equipments are in working in order al all times Maintain the list of all electrical equipments Ensure proper maintenance of generator and air compressor Maintain a register of repairs

Dispatch supervisor

Check the quality of the product before packing Controlling the packing section Maintaining the stock in packing material register Supervise the loading Maintain stock position register Ensure sufficient stock of bags, tags and twine Maintain good return register

Parboiling operator

Ensure proper pre cleaning of paddy and check working of all machines Check all parameters of soaking, boiling and drying Check the moisture of paddy after drying Maintain the process sheet and enter the details Operate the raw cleaning, parboiling and drying section

Milling operators

Check the type of paddy Check the variety of paddy Record the shift timing Check the impurities
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Record the no. of tonnage Record the productive hour

Sortex operator

Check the type of rice and variety Check the moisture level of rice Check whether rice is suitable for sorting Carry out timely cleaning of sortex machines Carry out sample weighting of packed rice from time to time

PRODUCTION PROCESS The manufacture of rice from paddy is done in 3 stages, the parboiling, drying and milling PARBOILING The paddy is taken to the first paddy cleaner and destoner machine through dust blower where the dust stones and immature paddy are removed. Then it is taken to paddy cleaner machine and the cleaned paddy is taken to the parboiling tanks through a metal chute. The paddy is boiled to the required level in the parboiling is tank and boiled paddy is dried using hot air produced by the boiling machine DRYING The second part of the process is the drier machine which consists of the drying plant, heat exchanger and blower. The paddy is boiled and this is taken to the drying part of the machine through an elevator attached to the driver machine. The paddy is dried here and after that it is taken to paddy cleaner machine and the husk is collected. The shelled paddy will go through the paddy separator machine which separates unshelled paddy and the rice. Then the polishing process is done and the polisher machines helps in polishing

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the rice with rice bran. After polishing the rice will go through the vibrator machine where stones and broken rice are separated. MILLING The final product is collected at the end of the milling section and this will go to the rice colour sorter machine for removing the black and immature rice completely

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PRODUCTION PROCESS

Raw

1st phase paddy cleaner

Destone

Cleaned paddy

Parboiling tank

Paddy drier machine

Drying Plant Heat Blower Dry paddy storage tank

Husk Bran

Milling Section

2nd phase paddy cleaner

Destoner

Polishing

MDRA machine

z-sortex

Packaging

Dispatching

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3.3.3. Marketing Department Todays successful companies share along focus and a hearty commitment to marketing. Modern marketing seeks to attract new customers by promoting superior value and to keep current customers by delivering satisfaction. Sound marketing is critical to the success of all organization. But marketing combines many activities such as market research, products, department, distribution, pricing and advertisement. The marketing concept was born out of awareness that a business to start with the determination of consumers needs and end with satisfaction of those wants. The word marketing is a comprehensive term and the success of every company lies in the marketing activities. Marketing department plays a vital role in the success of the NIRAPARA group. They mainly focuses on the customer satisfaction and the department is responsible for influencing the level, timing, composition of customers demand in a manner that will achieve company objective.

DISTRIBUTORS The KKR group of companies has large no. of distributors in Kerala. For the rice products the company has at least one distributor for rice in every district in Kerala. For the other food products they are following a policy of having one distributor in every 3 panchayaths in Kerala. The company has also distribution in UAE, Muscat, Bahrain, Oman, Qatar, Kuwait, Canada, UK, Switzerland, France, Australia, New Zealand, Singapore .etc. Considering the increasing demand company is planning to increase the no. of distributors.

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DISTRIBUTION CHANNEL The varied products are supplied to all the retail outlets all over Kerala. Direct marketing system is followed. The company is also having a small outlet for the sales of the products.

Company Distributors Wholesalers/Retailers Customers The main dealers include the supermarkets, wholesale institutional buyers, grocery shops, pan shops .etc.

POLICIES AND PROGRAMMES Modern business is regarded as an integral component of the society. In todays world, society is expecting much more from business than in past. Modern business must demonstrate social awareness, sensitivity and social performance. The manager should consider the effect of their decision upon all stake holders who are interested in the enterprise directly or indirectly and who may be adversely affected by these corporate decisions. MARKETING PROCESS CONCENTARTION Under this process goods and products are collected together at a central point to facilitate further action upon them. It is concern with gathering, collecting and concern rating raw material, partially finished goods and finished products etc at central points. These concentrations to a certain extent embrace various other functions also such as assembling, storage, financing, grading, standardization, risk taking etc. EQUALISATION
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Equalization consist of the adjustment of the supply to the demand on the basis of the time and quality. This sort of adjustment can be done through storage and transportation in market centres. DISPERSION It refers to the allotment of the raw materials to the producer and the final products to the consumers in lots of small and big sizes suitable for their consumption.

PROMOTIONAL ACTIVITIES It is the process of communicating about the product to current and potential customers in order to pursue them to buy the product. Promotional activities like advertisement, trade or dealer promotion, increasing rate of commission to the representatives etc. are followed by the company. NIRAPARA gives offers to the dealers which will also benefit the customers. ADVERTISING AND PRICING Advertising is the process through which the consumers are getting information about the product. It pursues the consumers to buy the product. It helps in increasing the sales and creates a brand name and consumer loyalty. Advertising has been a boosting tool for the company last year. Last year NIRAPARA started advertisements in television channels and other medias with the film actress Kavya Madhavan and after that the demand has been increased for the Nirapara products. The company is also doing advertising by wall painting, boarding and boards and side panels on KSRTC buses. MARKET SEGMENTATION Once the markets has been identified it becomes easy for an organization to make a product satisfies customers and differ from these of competitors. The market segmentation is the strategy that subdivides the largest market into subgroup of
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consumers with definable, distinct and differentiated marketing programmes for each subgroup in order to enhance satisfaction tom consumers and profit to the market. Marketing concentrates on this group. Any products at its introduction stage bring only a low profit due to the expenses in sales promotion. Similarly to capture the market a lot of changes can be done t the existing products lie changes in shape cover, taste etc.

PRICING STRATEGY Pricing decisions are made on the cost of production which includes the cost of raw materials and other charges. It also depends on the factors such as competitors price, buying pattern of customers and distribution channel. Some products of the company get a high profit while others get a less amount of profit only. Even then for the existence in the market and to push up sales of other products, the company continues to sell those products also in the market.

KEY PERSONS SALES AND MARKETING MANAGER The major responsibilities of the marketing and sales manager are Give orders and instructions to sales executives Conduct market analysis Give promotional techniques Solve complaints of the customers Prepare details of shops and quantity of sales Check whether there is any pending in the product supply

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SALES EXECUTIVE The major responsibilities of the sales executives are Collect orders from different shops Identify the complaints of the customers Give information about the customers and the shop keepers Inform about market which has more and less sales

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3.3.4. FINANCE DEPARTMENT Finance is a life blood of a business. The operations of the business cannot be carried on without adequate financial resources. So it is essential for a firm to ensure the availability of funds when it is required. Finance is concerned with acquisition and utilization of capital in meeting the financial needs and the overall objective of a business enterprise. Management of finance broadly concerned with acquisition and use funds by business firms. Financial management is the job financial department. Niraparas financial department is headed by General Manager. Financial analysis is helpful in assessing the financial position and profitability of a concern. This is done through comparison by ratios for the same concern over a period of years or for one concern against another or for concern against the industry as a whole or one department of a concern against other departments of a same concern. The objectives of analysis of financial statement are to assess: The present & future earning capacity or profitability of a concern The operational efficiency of the concern as a whole and of its various parts of departments The short term and long term solvency of the concern for the benefits of the debentures holder and trade creditors The financial stability of a business concern The real meaning and significance of financial data Long term liquidity of its funds

Significance of business finance: I. II. Purchase of fixed asset such as land, building, plant, machinery etc. Meeting the cost of current assets such as sundry debtors, bills receivable, inventory etc. III. IV. V. Meeting the cost of promotion Cost of establishing the business Cost of finance such as brokerage, underwriting commission etc.
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VI. VII.

Purchase of intangible assets such as goodwill, patent, copy writes etc. Expansion, growth and modernization of business

FUNCTIONS OF FINANCIAL DEPARTMENT By producing an accurate portrayal of the potential of the profits and cost of each title the finance department aids all department in making the best financial decisions. The department is charged with the following tasks: Forecasting, budgeting and strategic planning Accurately projecting the companys financial performance Controlling cost through internal auditing Developing business plans and models for the growth of the company

The finance manager, who is the head of the department, provides various financial information for taking decisions. All other employees concerned are responsible to him. He is entrusted with the duty to the insurance and the other finds generating formalities. Working capital management is another main function of the department.

The main functions of financial departments are: Obtaining finance Financial accounting Banking relationship Internal audit Cash management Taxation Management of accounting &control Preparation of financial report Payment collection of all department Expenses analysis Funds management Evaluation of group finance
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Acquisition of funds Determining the sources of funds (Equity share capital, preference share capital, debentures) Effective use of resources Planning of resources Controlling of resource

RESPONSIBILITY OF FINANCE MANAGER Cash arrangement in a schedule wise Maintain credit for distribution Immediate draft and cheque are provided as per the requirement Day to day company expenses are maintained Yearly return, sales return, auditing ISO auditing will be made in every six month

RESPONSIBILITIES OF COST ACCOUNTANT Ascertain the cost per unit of different product manufactured by a business concern Provide a correct analysis of cost both by process or operations and by different element of cost Ascertain the profitability of each product and advise the management to how the profit can be maximize Helps in preparation of budget and implementation of budgetary control Advise management on future expansion of policies and proposed capital project Guide management in the formulation and implementation of incentives, bonus plan based on productivity and cost savings Organize the cost reduction program with the help of different department managers

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Supply useful data to management for taking various financial decision Helps in supervising the working of punched card accounting or data processing through computers

Exercise effective control of stock of raw materials, work in progress, consumable stores and finished goods in order to minimize the capital.

ACCOUNTING RATIOS Current Ratio Year Current Asset ( Rs in 1000s ) 2008-2009 2009-2010 2010-2011 2011-2012 226419 337575 435764 609398 Current liabilities ( Rs in 1000s ) 102032 216775 289786 449686 2.22 1.56 1.5 1.35 Current Ratio

Quick ratio Year Quick Asset ( Rs in 1000s ) 2008-2009 2009-2010 2010-2011 2011-2012 97281 202592 239372 380056 Current liabilities ( Rs in 1000s ) 102032 216775 289786 449686 .95 .93 .83 .85 Current Ratio

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Net working Capital Ratio Year Net working capital( Capital employed ( Rs in 1000s ) 2008-2009 2009-2010 2010-2011 2011-2012 124387 120800 145978 159712 Rs in 1000s ) 165915 157457 181852 191758 .75 .77 .80 .83 NWC Ratio

Inventory turnover ratio Year Net sales( Rs in 1000s ) 2008-2009 2009-2010 2010-2011 2011-2012 391544 407905 429590 472568 Average inventory ( Rs in 1000s ) 122778 132060 165687 210392 Inventory turnover Ratio 3.19 3.09 2.59 2.19

Debtors turnover ratio Year Net credit sales( Rs in 1000s ) 2008-2009 2009-2010 2010-2011 2011-2012 391544 407905 429590 462568 Average debtors ( Rs in 1000s ) 54537 114812 168422 263476 Debtors turnover ratio 7.18 3.55 2.55 1.76

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Fixed asset ratio Year Fixed assets( Rs in 1000s ) 2008-2009 2009-2010 2010-2011 2011-2012 41528 36656 435873 32045 Long term funds ( Rs in 1000s ) 162532 152012 176552 186902 .25 .24 .20 .17 Fixed asset ratio

Proprietary ratio

Year

Proprietors fund( Rs in 1000s )

Total assets ( Rs in 1000s ) 267947 374232 471638 641444

Proprietary ratio

2008-2009 2009-2010 2010-2011 2011-2012

23214 28214 30948 31040

.11 .08 .07 .05

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3.3.5. HUMAN RESOURCE DEPARTMENT The development of the organization can be achieved through the development of the people of the organization. So we can say workers are the backbone of the organization. The impressive level of productivity is a hallmark of KKR Group of Companies and today the company have highly committed workforce which leads a high degree of productivity with impressive levels of quality. FUNCTIONS OF HR DEPARTMENT Estimating man power needs. Recruiting and selection of staffs Training and development Promotion and transfer Remuneration Performance appraisal Financial and non financial incentives Employing most suitable persons Keep pace with new development Maximum utilization of man power Ensuring job satisfaction Placement of manpower

The major activities of HR manager include performance appraisal, employee welfare, disciplinary proceedings, etc. The legal issues are also carried out by the Human resource Manager. RECRUITMENT AND SELECTION Recruitments are mainly done through the advertisements in the newspapers, reference from employees and the consultancies. Thus a short list is made and the company calls for a general interview. The preliminary interview is done by the HR manager and then
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the final round of interview is done by the Chairman and Vice Chairman. If they are satisfied appointment is made. The HR manager gives a general introduction about the company. During the probation period the performance of the candidate is assessed. If the performance is satisfactory they will be appointed as the permanent employees of the organization. Loading and unloading employees are mainly hired from Orissa and Bihar through registered labour agents. MANAGEMENT - WORKER RELATIONSHIP The management is having a view that the success of the company depends very much on the healthy relationship between the management and staff. The management encourages employee participation in the overall activities of the company. The management of KKR Group has a good relationship with the workers, so there is no trade union in the company.

EMPLOYEE WELFARE ACTIVITIES Welfare including anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and the motivation of the employees high so as to retain the employees for longer duration. The welfare measures may not be in monetary terms only but in any kind of form. Employee welfare activities in the company include Accident insurance Lodging facility Transportation facility Canteen facility

WAGES-SALARY ADMINISTRATION Salary of the office staff consist of the basic pay and HRA. Salary increment is made on the performance basis. For marketing staff a certain percentage of the sales turnover is
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given as commission. The workers are paid according to scale. It consists of basic pay, fixed DA and variable DA. The company also provide provident fund, contribution towards bonus and gratuity.

SHIFT SYSTEM

General shift Production shift

: 9.00 am to 5.00 pm : 8.00 am to 4.00 pm 4.00 pm to 12.00 am 12.00 am to 8.00 am

ATTENDACE SYSTEM Biometric attendance machine is used for the office staffs and normal attendance register for the workers TRANSFER AND PROMOTION The management by the order from the managing director is authorized to transfer any employee and he has to join the new job within three days. For the promotion it follows a performance based promotion system LEAVES Casual leave Sick leave Earned leave

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TRAINING AND DEVELOPMENT Training and development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. Sales training is conducted once in 3 months for the representatives and executives. Training will be conducted by the trainers from outside centres. Fresher who are having the technical knowledge will be given on the job training. Job rotation is given to workers for developing their skill in different areas. PERFORMANCE APPRAISAL People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. The most common performance appraisal method is rating method. Appraisal report is forwarded to the HR manager by each department head. The employees are given salary increment on the basis of the performance. GRIEVANCE HANDLING A grievance is any dissatisfaction exposed or not whether valid or not arising out of everything connected with the company, which an employee thinks, believes or even fell to be unfair in the company. If workers have any problem they can immediately report to the supervisor. If supervisor cant solve the problem at this level they can directly report to manager or in the organisational there in a grievance handling

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3.4. ORGANIZATIONAL ANALYSIS


3.4.1. SWOT Analysis STRENGTH ISO and HACCP certified company Brand name of the company High quality products Product diversification No trade union Law employee turnover Wast network of projects

WEAKNESS No frequent advertisement Distribution channel is not every effective in the central zone Higher centralized decisions

OPPURTUNITY Availability of cheap labour Scope for expanding its export operations Growing demand for packaged goods and health and wellness products

THREATS Tough competition in the market Extinction of paddy in the market Increasing raw material prices Export of matta rice is banned by the government support price for paddy by the government Government interventions in the ma

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CHAPTER 4 OBSERVATION AND CONCLUSION


4.1 FINDINGS The companys goodwill is high among customers Dedicated employees are seen in all departments The company own stores for selling their products There exists a good relationship between management and workers There are no trade unions in the company Majority of the people are aware of the brand name Nirapara The company is maintain consistency in quality Most of the customers are satisfied with the quality of the product Advertisement through televisions is the most effective tool of promotion

4.2 SUGGESTIONS The company must advertise more and must review the advertisement strategy The distribution system should be made more effective in the other states The company should have a contact with the supermarkets to know the purchase behavior of customers

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4.3 CONCLUSION The intention behind doing this project was to get better idea about the organization, its different departments, responsibilities of key personalities and its competitive performance with respect to specific operational parameters The company is striving its level best to maintain the consistency in quality. The company is using Z sortex machine, capable of optical inspection for quality control. The activities of the plant office and all other departments are functioning at the impressive standards for achieving the organisational objectives. The commitment and efficiency of the employees helped Nirapara in capturing highly competitive market. Product diversification enables the organization to get a prominent place among the corporate entities.

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BIBLIOGRAPHY
nirapararice.com,company profile7 Feb.2012.Web.6 May 2013 ibef.org, food industry 13 December. 2012. Web. 29 April 2013 Indiabusiness.com,food processing industry2 Jan 2012.Web 1 May 2013 Worldbusinessrice.com, rice production 30 May. 2011. Web. 7 May 2013

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