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




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




2





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


































3




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.



4



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 far-
reaching 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

5



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.








































6





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 15
th
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 18
th
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

7



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

8







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:


9




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


10



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 introducti on 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








11




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

12







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 Market share
Nirapara 25
Periyar 15
Pavizham 12
Double horse 10
Other local brands 38


Table 2.1








25
38







10
Nirapara
Periyar
Pavizham
Double horse
15 Other local brands


12





Fig 2.1 market share



13





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, de-
husking, 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.








14



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



























15




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 tastes-
brown 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 t he
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. Name of the product
1 Single Matta Rice
2 Rose Matta Rice
3 Payasam Rice
4 Idly Rice
5 Ponni Rice
6 Jyothi Rice
7 Jaya Rice
8 Cherumani Rice


Table 3.1




16






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. Name of the product
1 Idly powder
2 Appam powder
3 Dosa powder
4 ChembaPuttu powder
5 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





17






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. Name of the product
1 Chilly Powder
2 Coriander Powder
3 Turmeric powder
4 Sambar Powder
5 Rasam Powder
6 Chicken Masala
7 Fish Masala
8 Meat Masala
9 Curry Powder
10 Pickle Powder
Table 3.3




18






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

Garlic Pickle


Cut Mango Pickle Kadukumango Pickle

Hot & Sweet Lime Pickle Gooseberry Pickle

Hot Lime Pickles Bitter gourd Pickle(Red)

Bitter gourd Pickle (White) White Lime Pickle

Mixed vegetable Pickle
Vadukapuli Lime (white)
Pickle


Vadukapuli Lime (Red) Pickle Wild Mango Pickle

Tender Mango Pickle
Irumbenpuli(Karambula)
Pickle


Hot and Sweet Mango Pickle Tindora Pickle (Kovakka)

Lololica (Scramberry) Coconut Chutney

Table 3.4



19





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.



















20




3.2. ORGANIZATION STRUCTURE

3.2.1. CORPORATE STRUCTURE

Chairman



Vice Chairman



General Manager





Purchase
Manager





Store Keepers





Marketing
Manager




Area Sales
Manager




Paddy
Inspector





Production HRD Finance
Manager Manager Manager






HR Security Receptionist
Executives Officer



Milling Maintenance
Supervisor in charge





Cost Accountant




Cashiers Bank Section

Fig 3.1 Organisation structure of Nirapara


21








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









22








MARKETING DEPARTMENT




Marketing Manager








Area Sales Manager
(South)








Territory Manager











Sales Executives









Area Sales Manager Area Sales Manager
(Central) (North)








Territory Manager Territory Manager











Sales Executives Sales Executives


Fig. 3.3 Marketing department structure Nirapara


23








PRODUCTION DEPARTMENT


Production Manager




Paddy
Inspector






Brain
packing &
loading


Paddy
packing &
loading



Husk
packing &
loading




Maintenance in Electrical in
Charge charge






Electrician



Mechanics




Packing Milling
Supervisor Supervisor












Plant Operators



Rice Packing



Sortex
Operators

Packing Section


Parboiling Operators Milling Boiling
Operators Operators
Fig 3.4 production department structure Nirapara

24








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



Fig 3.6 HR department structure Nirapara






Helpers







25







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?





26







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

27





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. Quotations are invited and the suppliers are selected
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





28









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
500 tons
SN rice mills Okkal Rice 740 tons
KKR flour mills Okkal Flours 250 tons
KKR Agro mills Chelamattom Rice 750 tons
Karthika Mills Kanjoor Rice 95 tons


Table 3.5 production units






29





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




KKR Flour KKR Agro Karthika
Mills Mills Mills

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



30




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




31





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











Paddy drier
machine













Destoner



MDRA machine





z-sortex



1
st
phase paddy Destone
cleaner



Parboiling tank






Drying Plant

Heat

Blower



Husk Milling
Section
Bran


Polishing









Packaging



Cleaned paddy











Dry paddy storage
tank





2
nd
phase paddy
cleaner















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.











36





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

38





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







39





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


41



VI. Purchase of intangible assets such as goodwill, patent, copy writes etc.
VII. 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

42





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



43



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




Quick ratio

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





44






Net working Capital Ratio

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


Inventory turnover ratio

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


Debtors turnover ratio

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









45






Fixed asset ratio

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




Proprietary ratio




Year Proprietors fund( Rs
in 1000s )
Total assets ( Rs in
1000s )
Proprietary ratio
2008-2009 23214 267947 .11
2009-2010 28214 374232 .08
2010-2011 30948 471638 .07
2011-2012 31040 641444 .05



















46






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

47



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
48



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 :







ATTENDACE SYSTEM



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
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





49





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










50




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


51




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



















52





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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