Stenu Johny AVT OS

AVT NATURAL PRODUCTS LIMITED 1
JAI BHARATH SCHOOL OF MANAGEMENT STUDIES

INTRODUCTION
Organization is a harmonious adjustment of specialized parts for the
accomplishment of some common objectives. The objectives are laid down as when
an organization is start. Various factor like manpower, money, machinery, capital
management etc. are grouped together to form an organization and to achieve the
goals of the organization.
Organization study is the systematic study on the working of overall
organization, it involves study of various departments, manpower, department
function and process flow of each department. It aims to familiarize the students
with the nature and functioning of organization in the real word. It provides
students the opportunity to know, observe, learn, collect and analyze the nature,
vision objectives and functioning of an organization. It helps us to study how to
apply our theoretical knowledge in an organization.
This organizational study is an attempt to know about the organization, named
AVT Natural Products Ltd., its departments and their functions. AVT Natural
Products Ltd (AVT NPL) is a public limited company located at South
Vazhakulam. It operates in the segment of oleoresins/extract color and flavors.
AVT Natural Products Ltd (AVT NPL) is a public limited company promoted
by Mr. Ajit Thomas as a strategic diversification from the traditional plantation
business of AV Thomas Group. AV Thomas group came into existence in 1925,
AVT Natural Product Limited, which is based at Cochin, on the largest contracts
farming in India. Recently the company is diversified its products into the
production of spices, oleoresins, essential oils, natural food color and natural extract
for the global food ingredients market. AVT natural products Ltd operates in the
segment of oleoresins/extract color and flavors. The company has highly advanced
facility in-house to develop superior quality planting materials.



India is one of the largest producer, consumer and exporter of spice in the
world. Although spices are exported in majority of forms, the major shares consists
of raw and bulk form. India has a dominant position in the worlds spice industry
with substantial production and availability in wide range. India produces over 2
million tons of spice annually.
In the past the export was in raw for but by the mid eighties more importance is
given to the value added forms. Now India offers a large variety of value added,
ready to cook consumer pack products like blended spices, spice oil oleoresins,
curry mixes and natural food colors.



1.1 SIGNIFICANCE OF THE STUDY
Organization is an inevitable part of business & management. Therefore study
on organizational structure, management process, functions etc. are very significant.
The study is very important for knowing the following.
To have an idea about the organization named AVT NPL.
To have an idea about the products.
To have an idea about the organizational structure of the company.
To have an idea about the departmental functions of the company.
To have an idea about the financial position of the company.

1.2 OBJECTIVES OF THE STUDY

To familiarizes with the organization.
To study about the functions of various departments in the organization.
To know how the theoretical knowledge and practical knowledge go
together in order to achieve organizational goal.
To know how decision making is done in various departments.
To analyzes the strength, weakness, opportunities and threats of the
company.



1.3 METHODOLOGY OF THE STUDY

Data Collection

The data forms the fundamental basis of any study. So collection of data is of
great importance. There are several ways of collecting the appropriate data. The
sources of data collection is classified in to two, those are, primary data and
secondary data

Primary Data:

The primary data are those which are collected for the first time directly
from the source and thus happen to be original in character. Primary data are
collected through direct interview, questionnaire, schedules, interaction and
observation. It was collected through observation of the firm.

Secondary Data:

The secondary data are those which have already been collected by
someone and which have already been passed through some statistical
process. Secondary data are collected from magazines, journals, annual report
and internet.

The study employed the method of observation to collect the
required data for completion of this report. Discussion and interviews with
concerned officials were also held for the purpose



1.4 PERIOD OF STUDY

The study was carried out for a period from May 2
nd
2014 to May 31
st

2014.

1.5 LIMITATIONS OF THE STUDY

The busy schedule of the department heads restricted collection of detailed
information.
Confidential data are not exposed at certain time.
In deep study of each and every department in the organization is not
possible.
To understand an organizational and its working, the period of 30days is
not at all enough .so time was the most important limiting factor in the
study.

1.6 SCOPE OF THE STUDY

The study intended to attain a firsthand experience of the overall running of an
organization. It helps to understand the working conditions of the organization; its
financial and market position. A detailed analysis of each of the activities
performed by the departments is beyond the scope of the study. It provides a chance
to see practical constraints faced by the managers while putting theory in to
practice.



INDUSTRY PROFILE

The story of Indian spices dates back to 7000 years into the past.
India is known as the home of spices because there is no other country in the
world which produces as much kind of spices in India. The climate of the country is
also suitable for almost all spices. The history and culture of Indian spice is
probably as old as human civilization itself.

According to International organization for standardization
(ISO) the term spice and condiments are applies to natural plant for vegetable
products or mixture thereof in whole as ground form, as are used for importing
flavor aroma and for seasoning of goods. Spices constitute important group
agriculture commodities, which are virtually indispensible in the country art. For
India spices are important commercial crop of the point of view of both domestic
and consumption and export. Besides, huge quantities of spices are also being
consumed within the country for flavoring foods and also used in medicine,
pharmaceutical, perfumery, cosmetics and several other industries.

There are several spices grown in different parts of the world and
around 50 species are grown in India. Major spices of export are pepper, cumin,
cardamom, ginger, turmeric and chilies. Among the spices exported pepper has the
leading position in terms of both quality and value realized. The Aleppey Green
Cardamom is considered as the best grade available in the world.
Today the Indian spices hold the same spell. Within the past one decade then
international trade in spice has grown by leaps and bond. An estimated 500000
tones of spices and herbs having value of 1500 million US dollars are new imported
globally every year. An impressive 46% of sappy comes from India. In the recent
year export of Indian spices has been taken leaps.


The Indian export of spices has crossed the 450 million US dollars mark during
1999-2000 and has reached 468 million US dollar.
Indias exports of spice extract have shown spectacular growth attaining
over 50% of the global market within a short span. Over the past decade, the Indian
spice industry has made quality, the cutting edge of its global game plan.
From the traditional commodity exports, Indian spices have evolved
into a state of art industry by absorbing technology developing value added
products identifying niche markets. The spice board of India (Ministry of
commerce, government of India) is apex catalyst of these dramatic transactions.
The board has been with the Indian spices industry the board plays a far reaching
and influential role as developmental, regulatory and promotional agency for Indian
spices.
2.1 INTERNATIONAL SCENARIO
Spice trading has always major economic
importance through the human history. The international trade in various forms of
spice has grown tremendously in the last decade. According to an estimate, 85% of
the international trade in spice is dried and is used after cleaning but without future
processing. Pepper is one of the most valuable spices in the globe trade. Countries
including China, India and Indonesia are emerging as the leading spice trader.
2.1.1 Role of Spices
Spices are well known as appetizers and are considered
essential in the culinary art all over the world. They add tang and flavor to the food.
Some of them also posses anti oxidants properties, while others used as
preservatives in some foods like pickles and chutneys.



Some species also possess strong anti-biotic activities. Many of
them possess medical properties and have a profound effect of human health since
they affect many functional possess. For instances, spice intensify salivary flow.
They clean thee oral cavity from food adhesion and bacteria.

2.1.2 Export
Export of spice oil and oleoresin and India has been increasing
every year. Spice oil and oleoresin are exported to about 18 developed countries in
the world. It may be noted that the share of oil and oleoresin in total earnings from
spice export from India is increasing.
USA is the major importer of oil and oleoresin from India accounting total
exports. UK, Canada, Switzerland, Japan, Singapore, Netherlands, Spain and Israel
are some of the importers of spice oil and oleoresin from India.

2.1.3 Import
Though Indian manufacture of spice oil and oleoresins
are situated in the land of spices certain spices are to be imported because of their
high yield, for example the yield of the Indian pepper is lesser than Sri Lanka
variety.
The same in the case of nut mug and mace, cloves on the other hand
are not grown in quantities enough to meet the manufacturers requirements in
India. They are hence imported to India due to the demand for clove oil in foreign
markets.



2.1.4 Market Outlook
In all developed countries, there is a powerful lobbying against all synthetic
food colors and flavors since it may cause health problems. Since the quality of
essential oil being subjective, there should be a direct contact between buyer and
seller for fixing quality standards.
In small markets, producers deal directly with
flavor/perfumery house, agent, actual users etc. The recent development in spice oil
production is the microencapsulated spice oil and oleoresins, sterilization oil were a
problem.
Bacterial contamination has emerged as a serious problem since
radiation was not allowed. Microencapsulating of the oil remains the same
throughout a long period. By encapsulation of oils we can almost up to the mark of
British oils in quality we have to go to a long way in improving packaging and
overall presentation of the product.
In the UK, Indian foods are becoming more and more popular.
This means that the demand for spice and spice product may go up in the coming
years. Of late there has been new development in the cola industry cardamom
colors, which is made by incorporating cardamom oils. The particulars have a
linking towards cardamom flavor, which is used abundantly in coffee flavored with
cardamom commonly known as Arab coffee.
The global demand of spice has increased due to: Increase in
demand and consumption of ethic food, Introduction of flavored coffee, tea related
drinks in the beverage industry, And a sharp growth in the processed food
consumption increase in the demand for natural fragrance for various health
therapies.



2.2 NATIONAL SCENARIO

2.2.1 India's Share in the Global Spice Market

Spice derivative can he categorized into spice oil oleoresin and
essential oils. The demand for spice derivative is also increasing due to the
hygiene, Standardization and consistency factors. India contributes nearly 70%
to the world spice derivative market. It exports to USA, UK, etc. Indian
southern states including Kerala, Karnataka and Tamil Nadu provide
concentrated oils and oleoresins focus in perfumery, pharmaceuticals, food
processing and chemical industry.

Key Industry trend

There has been a substantial increase in use of fresh herbs and spices
owing to an increased demand in the hotel industry.
Change of consumer towards lending a healthy lifestyle has increased
the use of herbs/natural spice for natural flavoring.
Use of spice derivatives like essential oils are being widely used
internationally in food and beverages industries for flavoring and
programs.



2.2.2 Indian Spice Industry
India has traditionally been known for its spice and cutlery herb for
production. It is the largest spice producing and consuming country. Its strategic
location, climate condition, advanced production process and availability of cheap
labors make it advantage for the producers to ensure large scale production of
quality spices and herbs. The booming global spice markets possess good
opportunity for the Indian spice industry to provide quality spices at competitive
prices.

India faces big competition from China, Malaysia and Pakistan
in terms of pricing of the product. Manufactures should therefore ensure
consistency in supply, product quality, pricing and marketing strategy to increase
the share in export. Producers are incorporating latest methods and technologies to
ensure higher quality of spice and herbs. India is one of the prime exports of
pepper, chilies turmeric, seed spice and spice derivatives to the rest of the world.
USA, EU, Japan and Sri Lanka import their Indian spice in large volumes.

Technology
Spice oils are usually extracted by steam distillation
while oleoresins are obtained through solvent extraction. Indian
manufactures either use the technology developed by them or technology
developed by Central Food Technology Research Institute (CFTRI) Mysore.
The industry started in late 1970s has now possessed adequate
technological standards and contribute a major share in India's spice expect
earning.



SCFE system is a modem technology of making oils or through
carbon dioxide processing. The system provides a modem cost effective
technology for value addition in processing for various commodities like
spices. SCFE is a two step process, while use carbon dioxide at the solvent
above its critical pressure and temperature for extraction of various natural
materials. This technology is preferred worldwide for commercial extraction
because of offers.
Production

There are about 24 companies engaged in producing spice oil and
oleoresins. Most of them are located in Kerala. The total production of theses
ranges from 2500 to 3000 tons per year. The total annual installed capacity of
these firms is about 4000tonnes. Several manufactures are now expanding tins
product line to include more spice or production at full ca
p
acity and this current
capacity utilization varies from art insignificant level of 60-70% of the total
installed capacity.
Government Policy

The ministry of commerce has given timely support for the study
progress of the industry, which culminated in the leadership in supply of oils and
oleoresins in the world markets. Self certification of essential oils and
oleoresins facilitates free flow of export. For import, Government lays duty
from other countries for extraction purpose. The Government also stipulates
time limit for re-export.



Applications of spices and derivatives

Food Flavouring
Food Preservation
Personal Hygiene Products
Aromatherapy
Feeds
Pharmaceuticals
Industrial Chemicals
Beverages

Major Spices Exported

Chilly
Seed spice
Turmeric
Spice oil and Oleoresin
Pepper
Cardamom
Fennel
Ginger
Fenugreek
Tamarind
Nut mug and Mace



2.3 COMPANY PROFILE

2.3.1 History

The seeds of AV Thomas group of companies were planted when Mr.
AV Thomas purchased grass land in a place named Pasuparai in Tamil
Nadu in 1925 and planned tea saplings. On purchasing their estate Mr. AV
Thomas floated various companies under his management. The company
was AV Thomas and Company Limited. After this a number of
companies were formed under his leadership in different locations in
Kerala. This led him to the formation of an empire.

AVT Natural Products Ltd (AVT NPL) is a public limited company
promoted by A.V Thomas group as a strategic diversification from the
traditional plantation business of A.V Thomas Group. AVT Naturals formed
in 1994 belongs to the renowned AVT Group of Companies and in the last
16 years has grown manifolds.
It started Marigold cultivation on 200 acres of land that has since
gone up to 35000 acres producing 100000 metric tons of flowers with the
support of 30000 loyal farmers. From producing feed grade Oleoresins in
the initial years. AVT Natural today produces Nutraceutical grade products
that meet global quality standards in food safety.
The companys contract farming model ensures Quality at Source.
Marigold business is an integrated project starting from seed development
and going on to Oleoresin. The contract farming model followed by AVT
Naturals has been regarded as one of the best in the industry.


As part of companys expansion plan, AVT NPL ventured in to the
world of food safe natural flavor and colour production. Thi s has become
immensely successful and popular in the global food ingredients industry.
The various certifications attained by them about their quality standards and
food safety norms.
2.3.2 Location
Kerala is the land of spice plays a significant role in the
global spices market. Spices are important commercial crops from the point
of view of both consumption and export market.

AVT Naturals deals with a premium range of exotic
spices that comes straight from Kerala, the spice haven of the world. AVT
NPL is located in the port city of Cochin, Kerala, India. Cochin is referred
to as the queen of the Arabian Sea or the spice capi tal of the World.
Having been strategically located in Cochin, AVT NPL has strategic
advantage of proximity to the source of raw material and logistic advantage
of import, export facilities owing to the sea, air and rail transport modes
being within its reach.
2.3.3 AVT Naturals Product Limited (AVT NPL)
The AVT NPL started its operation by establishing a
Soybeans Extraction plant in Pandurana, Madhya Pradesh, which produces
high quality of Soya-oil and oiled cakes. The oil is used as a raw material by
the domestic vegetable oil industry while the cake was mainly exported to
abroad.



In 1994 AVT Natural Products Limited, setup its second
extraction unit at Vazhakulam near Aluva in Kerala. The AVT Group of
compani es aft er 85 years of i t s operati on has presence i n Indi an agri-
business sector including plantations, aero processing, plant biotechnology
and natural food and food ingredients.
AVT NPL is 100% export oriented unit located
in Kochi, Kerala the spice capital of the world. AVT NPL is a member of
AV Thomas group of companies with interest in plantations, leather goods,
tissue culture and medical diagnostics. AVT NPL i s one of t he largest
contract frami ng companies in Indi a, with proven capabil ities i n
backward integration. There are two companies under the spice project,
AVT NPL and AVT McCormick in 1994.

AVT NPL is ISO 9002 certi fied and
products are Kosher certi fi ed. AVT NPL holds a dominant share of the
global marigold flowers, cultivated through 30000 farmers in five
different states in India. Because of the direct operation by the companies
own agricultural staffs, AVT NPL has been able to meet the required quality of
marigold food grade oleoresin
.



BUSINESS PROFILE

The company is in business of solvent extraction'
comprising of marigold oleoresins, food/spice oleoresins and value added tea
while marigold and tea operations are based on long, term supply agreements
through strategic alliances spices oleoresins have a well diversified product
portfolio.

Board of Directors

Chairman : Mr. Ajith Thomas
Managing Director : Mr. M S A Kumar
Directors : Mr. Habib Hussain
Mr. P. Shankar I.A.S (Retd)
Mr. Shyam. B. Ghia
Mr. M. A Alagappan



Plant Location
Mysore Trunk road, Puduvadavally, Sathyamangalam,
Harikura village, Honavally Hobi, Tritur Taluk, Tumkur District,
Karnataka.
Vazhakulam, Marampally P.0, Aluva, Kerala.
Nayanapalli Cross, Bisibanepalli (via), Hindpur. AP.

Subsidiary Companies
AVT NPL, 117 Philip street, #05-01 Grand building, Singapore.
Heilong Jiang AVT Bio- Products Ltd (sub of AVT NPL) Shuang
Yashan state farm, Boston, China.
Registered Office
64, Rukmini Lakshmipathy Salai, Egmore Chennai-600 008,
E-mail: shareholder@avtspice.com.

Major Divisions
Agro Operations
Dehydration Unit
Solvent Extraction Plant



Agro Operations:

Agro operations include field extensions and commercial
activities. The areas of operation include Sathyamangalam in Tamil Nadu,
Hindupur in AP and Thiripur in Karnataka. The field extension activities include
developing new farming area. The distribution of item for fanning through
farmer service centre which have been set up in the major procurement area with an
interest to provide better service to farmers.
The commercial functions include the follow up or the next
stage of extension function. It involves collection of flowers from framers,
and transports to the dehydration unit. Commercial executives, commercial
coordinators and commercial assistance carry out the commercial function.
Dehydration Unit:
The dehydration unit is situated near to the agro
operation in Sathyamangalam, Hindupur in addition to this there is a dehydration
centre for chilly at Byadgi in Karnataka. The first Phase of production is carried out
in these units before the dehydration flavors are brought to the solvent extraction
plant.
Solvent Extraction Plant:
The solvent extraction plant is situated at Vazhakulam. It is one of the
largest continuous extraction plants in the world. It also has a batch plant, a pilot
plant and a distillation facility. The processing capacity of the plant is 6500kgs per
annum. It has a processing area of 2000 square meters.
The plant is divided into following areas;
Pre-treatment area
Solvent extraction area
Finished goods section



2.3.4 Mission, Vision, Values & Team

Mission

To be a Global Leader in Marigold Extracts through a fully integrated
supply chain with excellence in Plant Science & Agriculture and
Logistics Management.
To achieve growth and stability in performance by diversifying to value
added natural ingredients for synergistic business segments through
development of product research and technology base.
To bring in highest level of efficiency, traceability, food safety and
quality in the supply chain through Contract Farming.
To establish brand equity for natural ingredients through development of
consumer marketing skills.
To comply flawlessly with ever changing international statutory
regulations for our business segments.
To consistently add value in our business to deliver superior returns to
all stakeholders-customers, employees, shareholders, suppliers, and
society

Vision:

To be a global leader, enriching lives through natures on ingredients as
food, nutrition, and medicine for mankind.
Provide total customer satisfaction through continuous improvement in
products, process and services.
Develop and motivate employees through ongoing HRD programs.



Values

Constantly strive for value in whatever we do.
Belief in ethical business and transparency.
Encourage individual excellence and foster environment for team work.
No short cuts & never sacrifice long term for short term.
Know the business environment, product and customers well update
knowledge.
Respect the neighborhood and individuality of each customer, supplier,
and employee.

Team

AVT Natural has 160 permanent dedicated employees in its direct rolls.
450 foot soldiers supporting contract farming advising farmers on Good
Agricultural Practices (GAP).
Our dedication to total customer satisfaction and adherence to highest
quality standards have established our name to be reckoned within the
food ingredients business.



2.3.5 AVT Group of Companies at a Glance

A V Thomas group of companies consists of diversified businesses in
Tea, Rubber, and Consumer products such as spices, food ingredients, leather and
Healthcare products.

AVT grown from strength to strength in:

Manufacturing Capabilities

Technological Strengths

Export Marketing Capabilities

Domestic Retailing Strengths

Quality In International Business

Experience In Managing Joint Ventures



Table 2.3.1 AVT Group of Companies
No. Unit Year Activity
1
The high land produce company
limited
1925 Tea and cardamom
2
The midland rubber produce company
limited
1934
Tea,cardamom and rubber
exports
3 AVT and company limited 1935
Trading export and
manufacturing
4 The kalpatta estate limited 1936 Tea and cardamom
5 The rajagiri rubber produce 1937 Rubber,coffee export
6
The nelliampathy tea produce
company limited
1941 Tea and coffee export
7 The shevaroy estate limited 1943
Tea,coffee,cardamom and
edible oil
8 Neelamalai agro industries limited 1946 Tea trading and export
9 AVT investments limited 1976
Financial and investment
company
10 AVT leather and allied products Ltd 1976 Leather goods and export
11 Nelliyampathy investments limited 1976 Finance
12 Hawthrone investments limited 1980
Finance and investments
company
13 Midland latex products limited 1989 Latex examination glover
14 AVT naturals products limited 1994
Spice, oleoresins and essential
oil
15 Rush AVT medicals limited 1995 Manufacturing caters



AVT Group Business Units

Plantations : 15000 Acres(6070.28 HA) of Tea, Rubber, Coffee, &
Spice Plantations in South India (5 companies)with 10 processing
factories
Consumer Products: Tea, Coffee & Spices. AVT is one of the largest
and popular brands in south India.
Leather Goods: AVT Leather manufactures a wide range of leather
goods for well known brand names in the USA, Europe, The Far East &
Australia.
Medical Appliances: Manufacture & Marketing of Rusch Foley
Catheters and distributes range of Imported Products in India
Biotechnology: L.J. International Ltd. Plant Tissue Culture. Product
range covers more than 70 products comprising of Flower, Fruit,
Forestry, Foliage and Medicinal plants which are exported to several
countries in the Americas, Europe, Africa, the Far East and Australia
Commodity Exports: Export of Spices, Natural Rubber, and Coir
Products & Food items.
Logistics: Licensed Custom Agents, Air & Sea Cargo agents, Ware
Housing.
Trading & Agencies: Building Materials, Rubber chemicals etc.
Food & Feed Ingredients AVT Integrated Spice Project

AVT Natural Products Limited
AVT McCormick Ingredients Pvt. Limited



2.3.6 AVT Integrated Spice Project

The AVT Integrated Spice Project is situated 22 miles from the port of
Cochin and spread over 22.2 acres of land. The Spice units in the complex include
AVT McCormick Ingredients Ltd., a 50-50 Joint venture between AVT Group
of Companies &McCormick & Co Inc. USA and AVT Natural Products,a public
limited company.

Specification Oleoresin Paprika
Product Range
Spice Oleoresin
Natural food colours and
Essential Oils
Technical details
Manufacturing facility with latest
technologies and imported machinery
Competitive Edge
Agro processing facility and backward
Integration
Capacity
One of the largest continuous extraction plant for
oleoresins
Export market
Asia, America, Europe, North America and South
America

Table 2.3.2 Highlighting factors of AVT



Major Areas of Business
AVT Group of companies has stopped up into varies areas of business. The
divisions in the AVT group are:

Figure 2.3.3 Different areas of business

AVT
Group
Tea
Leather
Goods
Plant bio-
technology
Rubber
Commodity
Export
Oil and
Extractions
Project
Engineering
Agencies
Agro
Chemicals
Coffee and
Spices


Company Turnover

AVT NPL holds a major share in the Indian spice industry and the present
turnover of the company is about 87 Crore rupees.

Code of Ethics
100% compliance with the law.
Protection of the property information and confidentiality of
information.
Prohibition against insider trading.
Giving and receiving gifts of certain values.
Policies regarding records retention and e-mail access.
Policies of improper or questionable payments.

Quality Certificates
ISO 22000
Spice house certificate by the Spice Board of India
Kosher certificate
GMP(Good Manufacturing Practice)
American Institute of Banking International, USA (AIB) 1999 "Superior
rating" in 2002, 2003,2004,2005,2006.
2001, 2004 consecutive year "lab of the year" for micro technology
worldwide.



Awards & Recognitions

AVT Natural Products Ltd won this year Emerging India Awards,
constituted for Small and Medium Enterprises in India, for "FMCG Food and
Agri Business Category". All SMEs having maximum net worth up to Rs. 500
million were eligible for this award.

AVT Naturals have shared second prize of Kerala State Pollution Control
for the excellence in pollution control by large industries in Kerala for 2009/10.
Kerala State Productivity Council Award for overall performance of the company.
The company has bagged this award for the second time. FACT M.K.K. Nair
Memorial Productivity Award 1998-1999.

The awards were given away on a countrywide basis targeting ten different
categories:
Auto Engineering and Ancillaries.
Pharma and Chemicals.
FMCG, Food and Agri-Business.
Gems and Jewelry.
Textiles and Apparel.
Information Technology, Communication and Entertainment (ICE), IT
enabled services (ITeS).
Infrastructure.
Travel and Tourism.
Retail Trade.
Commodity Traders and Others.



Organizational Structure

Organizational structure is the basic frame within managing decisions
takes place. Structure is the pattern in which various parts or components of the
company are interrelated or interconnected. Organizational structure is the pattern
of relationship among people in the organization. Design in organizational structure
is considered to be a matter of choice among large number of alternatives.
An organizational structure is a hierarchical concept of subordination
of entities that collaborate and contribute to serve one common aim. Organizations
are a variant of clustered entities. An organization can be structured in many
different ways and styles, depending on their objectives and ambience the structure
of an organization will determine the modes in which it operates and perform.
Organizational structure allows the expressed allocation of
responsibilities for different functions and processes to different entities such as
branch, department, workgroup and individual. Individuals in an organizational
structure are normally hired under time-limited work contracts or work orders, or
under permanent employment contracts or program orders.



Organizational Structure
Chairman
M.D
Vice
President
R & D
Vice
President
Finance
Vice
President
Sales &
Marketing
Vice
President
Operation
Vice
President
Agro
G.M
Chemist
Assistant
Assistant
G.M
Deputy
Manager
Senior
Executive
Systems
A/C
Assistant
Assistant
Manager
Executive
Manager
Senior
Executive
Manager
Assistant
Manager
Executive
Field Co-
ordinator
Manager
purchases
Assistant
G.M
Executive
Deputy G.M
Production
G.M
H R M
Assistant
Manager
Junior
Executive
Technician
Assistant
Manager
Junior
Executive
Supervisor
Technician
Senior
Manager
Junior
Executive
Sr. Manager
Administration
Junior
Executive
Assistant G.M
food, Safety
& PPC
Manager
Logistics
Staff
Assistant
Manager
Hygiene &
Sanitation
Junior
Executive
PPC
Assistant
Assistant Vice President Q.A/Q.CC
Manager
Chemist


FUNCTIONAL DEPARTMENTS

Different departments in AVT NPL are:

Figure 4: Functional departments in AVT NPL

1
PRODUCTION DEPARTMENT
2
SALES AND MARKETING DEPARTMENT
3

HUMAN RESOURCE AND ADMINISTRATION DEPARTMENT
4
FINANCE AND SYSTEMS DEPARTMENT
5
RESEARCH AND DEVELOPMENT DEPARTMENT
6
ENGINEERING DEPARTMENT
7
QUALITY CONTROL AND QUALITY ASSURANCE
DEPARTMENT
8
PURCHASE DEPARTMENT


4.1 PRODUCTION DEPARTMENT

Figure 4.1.1 Structure of Production Department
Vice President
Operetion
Production
Manager
Assistant
Production
Manager
Executive Staff
Supervisor
Technician


Production department is headed by the Vice President operation and
include 1 executive, 3 supervisors, and 40 technicians.
4.1.2 Production Plant
The production plant is divided into following areas:-

Pre treatment area: -

In pre-treatment area the marigold meal is pelletized. There are
different pelletizes for marigold and spices.

Solvent extraction area: -

In solvent extraction plant, the pelletized meal has to undergo 3 different
processes:

The meal is treated with hexane solvent in the extraction plant and
extracts the Xanthophylls pigment content from the meal are
evaporated.
The mixture passes through the process of evaporation where
by solvent get evaporated and Xanthophylls is left as residue.
The Xanthophylls are further evaporated in the process called stripping,
in which the solvent contents remaining are also removed to give pure
Xanthophylls.



Finished goods section: -

This is the final stage where the packaging materials after quality
checks are taken and locked with the finished material ready to shift to the final
testing. Production is carried out as per the production plan. This operation is
divided into 4 types based on quality of raw material and type of production and they
are continuous extraction, batch extraction, pilot extraction, pilot extraction and steam
distillation.
Continuous Extraction:-

The Company has one of the largest continuous extraction
plants in the world. This type of extraction plant is used in marigold extraction. The
plant has a capacity of 40 tons per day in 3 shifts.

Batch Extraction:-

Presently this .type of production is used for the chilly extraction and
has the capacity of 7 tons per day.

Pilot Extraction:-

The process is same as that of batch extraction and this is used for product
development purposes.



Steam Distillation:-

The type of process is used for the extraction of
volatile products. The collected marigold flowers or spices are silage
(oxidized) in the hydration unit and sends to screw press. The pressed flowers or
spices are then shredded and dried. After drying they are grinded to obtain the
meal (pressed flowers or spices). The meal is brought to the solvent plant. In the
pre-treatment area that meal is then palletized. There are separate palletizes for
Marigold and spices. In the first stage the Xanthophylls pigment from the meal is
extracted. Then the mixture undergoes a process of evaporation by which the
xanthophylls are left as residue. Finally the xanthophylls are further
evaporated in a process called stripping in which any remaining solvent content
is also removed to give pre xanthophylls.



Figure 4.1.2 Production Process

XANTHOPHYLLS
STRIPPING
EVAPORATION
SOLVENT TREATMENT
PALLETIZING
GRINDING
DRYING
SHREDDING
SCREW PRESS
SILAGING
FLOWER/SPICE


4.1.3 Production Planning and control

The main function of production planning and control department is
making arrangement for raw materials and effective shipment based on the business plan
for the year. Business plan from the top management gives the details of product
processing, raw materials and packing required, finance acquired etc. Two types of
planning are done separately for marigold and spices. For marigold the production manager
in consultation with the GM finance makes the plan for the month. Whereas the spice
production planning is done as per the sales and order requisition (SOR) from the sales and
marketing department. SOR gives the details like the name of the product and its
specification, quality required, packing conditions, mode of transport, agreed price etc.
AVT NPL adopted proper safety measures for to offer sale food products to the customers.
At each steps of production they ensure 100% safety of food products.
Food safety Programs
Standard operating procedures for all process steps
Color coded packing materials and labels for easy identification
Traceability from RM to FG and vice versa
Unusual occurrence & process upsets procedures
Handling of customer complaints and non-conforming products
Foreign materials controls policy like glass, wood and metal
Food Allergen Policy
Personal Hygiene Policies on Uniform, jewelry & visitors
Induction & Refresher Training for all employees
Employee health check-up & return from illness policy



Facility and Infrastructure for Safety
Dedicated warehouse for raw materials, in process material finished
goods, packing material to prevent any cross contamination.
Designed room to keep cleaning chemicals and pest control chemicals
and pest chemicals away from the processing area.
Designated place to keep the returned goods and damaged goods.
Dedicated area to keep hazardous chemical engineering spares.

Pest Control
Bait station for rodent control.
Pheromone traps and the fumigation for insect control.
Electric fly traps for fly control.
Warehouse fumigation at regular intervals.
Fogging in crack and services.

Working Conditions in AVT NPL
AVT NPL provides good working condition to the employee so
they felt more physical comfort and the company maintain an environment friendly
atmosphere. It gives freshness in the mind of their employees.



4.2 SALES & MAEKETING DEPARTMENT

Sales and marketing is the integral function of the
company. This department handles the distribution of the products in the
international market. The distribution is done through direct shipment except
in the European market, where the company has few agents. Through the
high quality of the product that AVT NPL supplies, the image of the
company in the world market i s that of an extremel y quali t y conscious
and prompt suppli er. The sales and market i n
g
depart ment hel ps in
mai nt ai ni ng a good i mage and broadening t he market horizons. All
these are achieved by effective promotional activities. This is done
through taking part in international food and spice festival. The company
has no direct connection with the customers since there are no direct outlets for
the company.



Figure 4.2.1 Structure of Sales & Marketing Department

Managing Director
Vice President Sales &
Marketing
Marketing Manager
Senior Executive
Junior Executive


4.2.2 Products of AVT NPL
AVT NPL is an ISO 9002 certified company which
produces the best quality spice oil extracts and colour pigments from its
100% export oriented unit highly competitive world market of USA,
EUROPE and other Asian countries.

Product Profile of the Company

Natural colour

Marigold extracts
Oleoresin paprika

Natural flavors

Black pepper oleoresin
Celery oleoresin
Capsicum oleoresin
Nutmeg oleoresin
Ginger oleoresin

Antioxidants

Rosemary extracts



Essential oils

Black pepper
Celery
Ginger
Nutmegs

New products

Safflower extract
Black carrot
Vanilla extract
Annatto
Fenugreek

Competitors Details

The main competitors of AVT NPL are:

SYNTHYTE
ICANCORE
AICEY
ENJAYES



Promotional Activities

The company is trying to make awareness among the
representatives of other international companies about the advantages of using
natural food products in international food exhibition, spice festivals. The
company is also giving their products advertisement in the food magazines for the
promotion of their products.

Distribution
The distribution is done through direct shipping except in Europe were
the company has few agents.



4.3 HUMAN RESOURCE & ADMINISTRATION DEPARTMENT

Figure 4.3.1 Structure of HR & Administration Department

General Manager
Administration
Assistant Manager HR
Manager HR
HR Executive
HR Assistant


4.3.2 Objectives of HR Department

To ensure man power recruitment in all departments.
To provide adequate training to all employees and to ensure that they are
aware of their role in the system.
To ensure that productivity of the employees are improved by way of
training.
To ensure that no man lost days due to industrial urgent.
To provide the welfare activities for the workers.

4.3.3 Policies of HR Department

Decisions regarding the working hours leave rules, health care policies, trade
policies etc.
Providing rest room facilities during intervals.
Annual medical checkup for all employees including contract employees
working in finished goods area.
Employees will be identified by photo identity card.
Vehicles, Drivers, Visitors, entering the factory premises will be checked at the
entrance by security personal document.



Functions of HR Department

Recruitment and selection
Induction
Training and Development
Performance appraisal
Grievance handling
Compensation and benefits
Welfare activities
Man power planning
Installing team spirit and work participation in management
Aiding project work
Moral boosting and involvement



Recruitment:

The purpose to meet the additional manpower requirements
in which arise due to increase additional work capacity and situations arise to
select the best talent. The recruitment is conducted by the HR department from
department source bio-data, placement cells or employee reference and also
the data bank. Bio-data are the reviewed and those satisfying the competencies
are short listed for the test I interview. In case if they do not satisfy the competency
specified in the competency chart, the candidates with the sufficient years of
experience are interviewed.
Selection:

Apprentices/trainees/technicians/staffs

Short listed candidates for apprentices/trainees/technicians/staffs are called
for a written test.
Initial interview is conducted by the immediate supervisor and the HR
executive.
Permanent vacancies candidates are further short listed for the second interview
based on the result of the test. Interview with the concerned department
headl
GM-HR Administration.

Selection procedure for executives:

The short listed candidates are called for the personal interview with the GM-
HR administration and the concerned department head. The candidates short
listed are taken for the interview with the vice president operations/MD.



The candidates selected are referred to GM-HR and Administration to finalize
the terms of employment.
The selected candidates are given offer letter has to be
acknowledge by the candidate. Before joining the candidates need to undergo
medical examination in a hospital specified by company and allowed to join if
he/she is medically fit. The appointment letter will be issued to the employee
within a month of joining depending on the qualification and the previous
experience of the employee, he is placed on probation but if experience is
insufficient company will be placed on training also. On joining the company the
employees has to fill up the HRIS form.

Induction:
The purpose of induction is to induct personnel into the
organization and to familiarize with the functions of various departments. The
employees are given induction schedule based on which he/she understand the
basic functions of relevant departments management trainees are introduced
by one day induction. On completion of the induction a report is submitted to
the concerned department head and GM-HR and Administration. Induction report
keeps as a personal file of the employee.

Training and Development:
The purpose is to list activities relating to employees and
measuring the effectiveness of the training. The training needs specified in the
appraisal complied together and programs are designed to meet requirements. It is
jointly done with the help of the concerned department head and the HR
department. The information is complied and a training calendar is prepared before
the month of June of every year.



General Programs address the specifications of the customer. Statutory
requirement, food safety and first aid also incorporated into the training calendar.
Trainings are scheduled as per the training calendar. After each
training a feedback are collected from the employees. After three months from
the date of training, training as done by the department head that interviews the
training calendar of the programmer and sends it back to HR department. All
trainings attended by the employee is recorded in the training record which is
maintained with HR external trainees/agencies identified by general manager to
handle specialized areas for training.

Performance appraisal:
The purpose to evaluate the performance of each employee
during the previous year and to identify the training required for further
improvements of the performance appraisal form. At the end of training and
probation period the employee's performance is evaluated. Overall
performance found to be good he/she is placed in the probation or confirmation and
is communicated in writing. If the performance hats unsatisfactory further
improvement training is required and probation is extended and is communicated to
the employee by a training and probation extension letter.

Promotion:

The promotion is on the basis of the performance of managers/executives and
for the workmen on the basis of experience and the promotional policy.



AVT NPL Promotional Policy
The policy provides promotion from one grade to another grade. A
worker completing 5 years regular service in a particular pay scale will be promoted to
the next scale in the same category. All the promotion will be effective from April 1
of the year after the workmen complete 5 years of regular service. The above will
not be given to the workers if,

He has not worked for 240 days in a calendar year, in case the promotion will be
held for a year.

Any punishment is awarded for domestic enquiry proceedings for misconduct in
such case an eligible candidate will not be given promotion or a period of 2
years from the date of order of the punishment.

Grievance handling:

Industrial relation
Communication
Attendance
Bonus



Industrial relations:

The management has recognized the association of employees by the
name of AVT NPL employee union. The management and union has entered into
a long term settlement on 19
th
August 2002 to establish fair work standards and
conditions to maintain harmonious relationship between workmen and the
company, to provide collective bargaining to prevent strikes, lock outs and
slowdowns to maintain effective and uninterrupted operations and thus ensuring
optimum quality NPL maintaining good HR among employees. And consistently
maintains team work inside the factory.

Communication:

Communication provides internal information service perhaps in the
form of staff news papers or magazines, hand out, booklets, videos. The internal
communication is done through telephone, e-mail, etc. Meetings are conducted
and minutes are recorded and kept for future reference. Department
meetings, open house with all employees and top management for sharing the
status of the business, welfare and related matters are discussed with selected
employee group by the HR departments and other departmental heads. In house
magazines are introduced as a part of the internal communication.

Attendance:

Attendance of executives is recorded by using punching machines and the
attendance register for other employees working in the company.



Bonus:
AVT NPL provide attendance bonus. An employee having monthly
attendance of minimum 22days is given attendance bonus.
Compensation and Benefits:
The current compensation package is one of the best in the industry and is
adequate to retain best resources. Salary is paid monthly which is inclusive of various
allowances applicable to each grade. There are specific salary scales for each grade of
employees and are placed in the grades from Al (senior vice president) to T1
(technicians-grade3). Increments are given annually based on the performance
appraisal done at the end of every financial year.
Management compensation includes:
Basic salary + HRA + Children education + Convenience allowance +
Company car etc.
Welfare activities:

Free canteen & transport facilities
Monthly welfare kits & Bonus
Birthday celebration of employees
Marriage gifts
Uniform for employees
Restroom & Locker facilities
Free medical check up
Tours for employees
Personal leaves
Spice/ tea powder give at subsidized price
Recreation club
First aid
Mask, Louse


Drinking water
Spittoons & Washing facility
Crushes for children of woman employees
Parking facility
Sports day
Family day

Types of leave:
AVT NPL has 3 kinds of leave, and they are:

1. Casual leave: 12 days per year this cannot be enchased and
accumulated.
2. Sick leave: 9 days per year can be accumulated 3 years cannot be
enchased.
3. For every 20 days one day will be granted as privilege leave.

Leave Application Procedure

Leave cannot be availed of as matter of right and the management may at its
desertion revise, revoke or curtail leave subject to the exigencies of the
working of the establishment and if need be recall and employee before the
expiry of the sanction leave.

Application for annual/privilege leave must be submitted 7 days before the
date of which the leave commences. Annual/ privilege leave must be
availed for not less than 3 days at the time and cannot be availed more than
3 spells in a year.



The employees shall not down the order of his leave card before the date
of leave and on return from leave shall submit a joining report on writing
to his department head.

For sick leave the employee must produce sickness certificate within 24
hours of absence owing to illness and also produce fitness
certificate before resuming work. Employees covered under the ESI
scheme must produce their certificates from the ESI authority and other
employees from the company medical officer. Employees are required to
comply with the rules of return from illness policy. Illness reporting
has to be submitted for sick leave exceeds 3 days, risk assessment
format has to be submitted while applying for leave.

Application for casual leave as far a possible should be submitted 24
hours in advance. Casual leave shall be granted only for emergencies of
any unforeseen circumstances and shall not be for more than 3 days at a
time. Casual leave cannot be accumulated and will automatically lapse if
not available before 31
st
December.

Unauthorized absence will be dealt as per the service rule of the
establishment.

Any change/alteration in the card without authorization shall amount to
misconduct.

The employees should submit this to the department immediately for
obtaining leave sanction.

Reason for leave should be written in the column provided without fail.



Manpower planning:

In AVT NPL management has done effective manpower planning.
Manpower planning is concerned with the determination of a quality personnel
required in an organization. Management is very friendly with their subordinates. It
will create a healthy atmosphere and giving motivation to the employees.
Trade Unions in AVT NPL: CITU
Workers participation in management:

Worker participation in management enables both the management and the
worker to share and exchange their view points in the process of joint decision
making. In AV1 NPL management give opportunities to employees for expressing
their ideas, opinion, and suggestion.

Employees Security Scheme
ESI
Health insurance scheme
Family planning scheme
Employee welfare fund
Shifts
There are 3 shifts
7.30am to 3.30pm
3.30pm to 11.30pm
11.30pm to 7.30 am


Job Responsibility of HR Personals

GM-HR Administration

Manpower planning and forecasting based on the business plans and
employee turnover.
Training needs analysis, co-ordination of internal and external
training programs.
Performance appraisal
Grievance redressed by chart investigation and through department
leaves
Maintaining work plan discipline through employee counseling or by
disciplinary action against wrongful employees.
Negotiation with representative trade unions.
Liaison with Government bodies like labour departments as local
bodies
Continuity of annual revision, promotion and incentives.
Recommendation of need based welfare machineries
Executive HR

Assisting GM HR and administration in human resource planning and
operation, recruitment and selection.
Maintaining data bank industrial new recruitment co-ordination with
employees union.
Annual revision, promotion, incentives etc.
Organizational welfare activities.
Salary appraisal by maintaining statement attendance.
Maintaining updated HR details, training records, monthly statement,
and organizational celebration.



4.4 FINANCE & SYSTEMS DEPARTMENT

Figure 4.4.1 Structure of Finance and Systems Department

Vice President
Systems & Finance
Finance Manager
Assistant Finance
Manager
Senior Executive
Junior executive


Finance department is headed by General Manager Finance and assisted
by Deputy General Manager and executive at factory level and comes Vice
President responsible for accounting, financing, and costing. Apart from this
function, the department has to work hand with HR department in connection with
disbursement of salary, allowance and grievances
Finance department is one of the important factors, which provides access to all
resources for being employed in manufacturing and merchandising activities.
Financial management means keeping sufficient balance of money to meet the
daily requirements. This department monitors the day to day financial activities
and guides the management in the right direction and forecast the profit and growth
of the organization.
Financial management deals with the pricing of the product or raw
materials. The finance department issues the pricing list of the materials
instructed by the customer and if the customer is satisfied with the prices shown
by the AVT NPL then only the work orders are issued.
Functions of Finance Department

Considering the individual department budget and getting the approval of
the Chairman.
Raising funds
Apply funds
Declaring
Valuation and control expenses
Costing
Planning
Submitting the monthly information system to the management that is the
estimated budget v/s actual budget (day to day transaction)
Preparing the profit and loss accounts, balance sheet for the stationary and
internal purpose.


4.5 RESERCH & DEVELOPMENT DEPARTMENT

Figure 4.5.1 Structure of Research and Development Department

Vice President
Research & Development
General Manager
Research & Development
Executive Research & Development
Chemist
Lab Assistant


R&D is inherent feature of the company's operations which enables
the company to prove talent enveloping natural extracts and formulations.
R&D department involves in natural products to meet specialized customers need
in full-fledged lab.
R&D was given a special thrust and several new and value added
products where introduced in the last 2 to 3 years including Ethanol C-95% alpha
free cap. Decolorized and pesticide free Paprika Oleoresin, Chromo shrimp,
Rosemary Oil etc. New projects are taken in collaboration with
multinational like Cola project and Decaff.
AVT NPL believes in novelty and offers customer newer and
specialized products. Keeping in mind the salient requirements of the customer
and specific country laws with regards to Aflotoxins lotion and pesticide residues
they endeavor to meet these specifications through in-house developed processes.
As a result AVT NPL has developed in-house
separation technology that has been used to produce Oleoresin Paprika with
absorbance ration of more than Aflotoxin free and pesticide reduced Oleoresin
Capsicum.
AVT NPLs Centre for Research and Development was established in 2000
and is recognized by Department of Scientific and Industrial Research, Govt. of
India.
R&D focuses on both market driven and technology driven products to
meet the continuous market changes.



Equipments of R&D Department

R&D centre is well equipped with an array of sophisticated
modern analytical instruments like GCs, HPLCs, HPTLC, GC-MS, and
Spectrophotometer etc To scale up new processes and products from lab to
commercial scale, company has invested in pilot plant facilities for
extraction/isolation, crystallization, column chromatography, reverse osmosis,
specialized tea processing machinery, spray drying,
microencapsulation.etc..Current focus is on carotenoids , natural antioxidants ,
specialty colours and flavours , value added teas , dietary fibers, phytochemicals
and beadlet technology.

HPLC (High Performance Liquid Chromatography) with cobra and
florescent detector for Aflotoxin and ETQ residue analysis.

CIO spectrometer for regular analysis is of active ingredients and GCMS
(Gas Chromatograph with Mass Spectrum) of 15000 components.



Organization Contribution to the Society
Social Responsibilities

AVT Natural, as a part of its social responsibility identifies the needs of the
neighbourhood and fulfils them completely.
They support 30,000 small and marginal farmers with technology to improve their
net farm returns and their livelihood. We respect our neighborhood and all our
stakeholders.
Eye Clinic: Around 40,000 school children were screened and, those who required
vision correction were identified and given the necessary treatment. This was
carried out by the doctors from ShankaraNetralaya in association with AVT Natural
Products and Rotary Club,Sathyamangalam.
Successful cleaning of weeds and waste materials from the Bhavani river banks and
strengthening of the embankments to provide better irrigation facility to the farming
community was carried out.
Infrastructure of the approach roads to our facility was further rectified.
Yearly financial assistance offered to the Panchayat for the Polio Eradication
Programme.

Free weekly medical checkup and assistance provided to the rural community by
doctors of AVT Natural Products at Sathyamangalam.
AVT has offered numerous facilities in the education sector by providing basic
amenities like computers, laboratory equipments etc. for the students of neighboring
schools. Cash awards have been endowed on top ranking students in the final year
of their school.



4.6 ENGINEERING DEPARTMENT

Figure 4.6.1 Structure of Engineering Department

Vice President
Operations
Senior Manager
Senior Executive
Supervisor
Technician


In Engineering department different units in three sections
are headed deputy manager engaging services and report to the Vice
President. This department is divided into three sections based on the
function namely Mechanical, Electrical and Utility.

Mechanical Department
Mechanical section under take repairs and maintenance of
all machine and also take care of preventive maintenance. Modification
of existing machineries are allocating as per the requirements in
production department. The production department issues Job
Requirements Form (JRF) on the basis of which the en
g
ineering
department initiates actions. There are 5 technicians and supervisors working
in this department.

Procedure of work:
Concerned department in
consultation with the engineering department give the job description.
On the job description is prioritized after completion for is prepared and
give to department. The format is called hot job order is prepared for
work than can't be undertaken under the factory premises are given to external
agencies.



Electrical Department

Electrical department utilizes power from
KSEB through 11 KV Substation. Two 350KV AVG/ ADO set s ar e
used when KSEB suppl y i s not avai l abl e. Thi s department is also
undertake routine maintenance of electrical circuit equipments like
LAN cabling, EPABX cabling etc. in addition to preventive
maintenance to avoid break down.
They also undert ake vari ous energy
utilizati on

studies to ensure optimum usage of power. This includes
power supply calibration of all machines operating equipments in the
cooling tower and chilling unit. In certain situation energy shortage time the
KSEB do not provide supply due to peak time requirements. So in these
situations diesel generators are used. Diesel is obtained from Indian Oil
Corporation on monthly basis. Diesel is stored in underground tank. This
department prevents break down and interruption to production.



Utilities Department

Utility department consist of four first class
boiler operators in this staff category aid four technicians. This
department is mainly

responsible for generation of steam under pressure.
There are two boilers of tones capacity for each. This steam conveyed
through insulated pipeline for production. This department is also responsible
for production of the effluent treatment plant, process and distilling of water
is treated as per pollution control system.
The effluent treatment plant consists of collection
tank, safe tank, an aerator tank and clarifier. The waste water is properly treat
before let out monthly return pertaining to water consumption and analysis,
report of raw materials and treated effluent are sent to the pollution control
board. The water treatment plant is set up for the properties of water used for
various purposes. Water is obtained from the nearby pond and is pumped to the
collection tank. From the collection tank the water passed through the sand
filter and the softener, this water is used for all domestic purpose in the
plant and office.



4.7 QUALITY CONTROL & ASSURANCE DEPARTMENT

Figure 4.7.1 Structure Quality Control and Assurance Department (QA/QC)

General Manager
QA& QC
Manager
Assistant
Manager
Executive
Chemist
Attender


The department is responsible for quality control of production from
purchase to finished goods. This facilitates to get a
g
ood image in the market.
They used international standard tests pungency solvent reside pesticides reduce
and colour value.
Advance equipment like HPPC, GC and spectrophometers are
used for total commitment to quality, safety extensive quality system and
processing operations. The most modern analytical lab closely monitors quality
tests for Aflotoxin PPB (Parts per Billion) level. HPCC gas chromatograph and
spectrometer fully fledged instrumentation for physical, chemical,
microbiological and micro sanitary, standard analytical procedure
conformed to ASTA/OAC/EWISO guidelines.

Major Quality Assurance Policy
HACPP- Hazard Analysis 84 Critical Point Policies

Delivering constant and high quality natural plant extract,
Meeting and exceeding the customer expectation.
Ensure safe product by implementing good manufacturing practice right
through the processing step from raw materials and finished products.
Motivating employees trainin
g
and development and effort for
production of environment in its operations.



Glass Policies

AVT NPL is a natural production processing industry manufacturing spice
oleoresins, food flavour, natural antioxidants etc. AVT ICPL is committed to avoid
production contamination due to breakage of glass by;
Preventing any unauthorized glass usage.
Ensuring classification of glass used in the processin
g
and non-processing
area into four groups based crystals and how essential for processing by
ensuring adequate safeguard to address food safety.
Progressively moving towards reduction in processing area.



4.8 PURCHASE DEPARTMENT

Figure 4.8.1 Structure of Purchase Department

Vice President Operation
General Manager Purchase
Manager Procurement
Executive
Manager Purchase
Purchase Assistant


The purchase department i n the AVT NPL is headed by
GM Purchase and assist by managers. The department ensures that it
intense and use the best of materials appropriate to the needs. The department
has two sections;

Purchase

Procurement

Purchase Department

Purchase department takes care of all the capital
purchases which include machinery, spare parts, coils and lubricants,
chemicals and stationary materials. The department does not handle raw
material procurement.
The Purchase Process As Follows:
The store department has to send the material indent to the procurement
department.
After getting the material indent the department will see whether the
item is budgeted or not and whether it is in the Capital Appropriation
Request (CAR) which is approved by the Chairman.
After proper vendor evaluation the purchase order is raised and the
item is purchased.



Procurement Department

This department takes care of consistent and
on time supply of raw materials as per the requirements of production
and planning department. To develop raw supplier and new source of
raw material to get the cost advantage to the organization the department
ensures that vendor and evaluated to maintain the quality of the raw
material being supplied by them. The GM Procurement is responsible in
ensuring evaluation and approval of vendor for the raw materials. The
approved vendors are monitored by the message for the supply of raw
materials made by them.



SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to
evaluate the strength, weakness, opportunities, and threats involved in a project and
identifying the internal and external factors that are favorable and unfavorable for
achieving that objective. The technique is created to Albert Humphery who led a
research project at Sanford University in the 1960s and 1970s using data from 500
companies.
SWOT analysis is undertaken to understand the firms external
and internal environments. A conscious identification of the relevant environment
enables an organization to focus its attention on these factors which are intimately
related to its mission, objective and strategies.

STRENGTH

ISO Certification,
Largest producers of Marigold extracts established in the world.
Established market abroad.
Draw synergies from AVT McCormick in the areas of food safety
Backward integration program is a major strength of the organization



WEAKNESS

No direct connection with end consumers.
Common people have less awareness about Oleoresin.
There is no domestic market for Oleoresins.
OPPORTUNITIES

Growing demand for natural products.
Chances for diversification.
Establishing market all over the world.
Chances for the domestic market operations.
THREATS

Mass production by China and Peru
Domestic competition
Unable to supply in accordance with demand due to scanty rain.
Seasonal variation may affect raw materials production and
procurement.



FINDINGS & SUGGESTIONS

6.1 OBSERVATION

The HR department here brings in a new name for the company -home,
where family members work happily, hand which brings in union and
strength to home as such.
The plant potential, modem technology, quality control methods and
policies make the customer a happy man.
Surroundings are very clean and attractive.
6.2 FINDINGS
The company should improve logistic orientation and try to have a
logical vision and turn its efforts to meet this vision.
The company should also improve its policy for the customers. The
company should have a written customer policy.
The company measures the customer satisfaction levels.
AVT has efficient management system
AVT provide free transport and canteen facility to their employees



6.3 SUGGESTIONS
AVT should have written customer service policy which communicated
internally and externally.
Review quality testing and reduce lead time for release.
Reduce new product development time.
AVT should look up the option of setting up of regional distribution
centre in Europe will help to reduce the lead time and increase service
level for customers market.
The company should measure the customer's satisfaction level.
Improve infrastructure facilities.
Suggestions should be obtained from employees for future
improvements
AVT has established market in abroad. But AVT has no domestic
market for oleoresin. So AVT should take steps to improve the domestic
market



CONCLUSION

The AVT group of companies after 85 years of operation has
significant presence in India's agribusiness sector including plantations, agro
processing, and plant biotechnology natural food ingredients. The study was
carried out in order to analyze and to understand the functional areas of the
organization. It is having well structured departments which are functioning
efficiently. The unique strength of AVT NPL is that it is the largest producer of
Marigold extracts in the world. New frontiers of science and technology will play a
dominant role in the future of spice industry.
The company which is completing sings in
the international market for its business in all aspects of its operations, it is
maintaining a very high standard better than other global competitor in
utilization of resources, man, machine and raw materials. The company is
upgrading its operations to keep up the place of demands from the global market.
The organizational study gave me an insight into the functioning
of the company AVT. The top management here is very efficient in decision
making, even though its functions are more or less similar to public sector
undertaking. The AVT has good opportunity in the global market. The companys
investment in expansion project provides other private and public institutions with
greater business opportunities.
The success of AVT would definitely encourage other enterprises to enter the
field of natural product. AVT is fulfilling its set objectives and making its mission
possible. The company is leading for a bright and prosperous future.



The study in AVT group helped me a lot to understand die
application of management practices in an organization. The study was based on the
information collected through direct interviews, observations and written statements
available from the organization. The study was a great experience and had given me
firsthand knowledge about the organization.



BIBLIOGRAPHY

Literacy Reference: AVT NPL, South Vazhakulam, Aluva
Text Books References:
Kothari C.R. Research Methodology: Methods and Techniques, New Age
Publishers, New Delhi, 2
nd
edition 2005.
Philip Kotler 2001 Marketing Management, Prentice Hall of India Pvt.
Ltd, New Delhi.
Pandey I.M. Financial Management, Vikas Publishing House Pvt. Ltd,
New Delhi.
James Mill and Robert Torrens Principles of Political Economy, 1817
Website:
www.avtnatural.com
www.indianspices.com
www.marigold.com

Stenu Johny AVT OS

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AVT NATURAL PRODUCTS LIMITED 1

JAI BHARATH SCHOOL OF MANAGEMENT STUDIES

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