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CHAPTER 1
INTRODUCTION
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1.0 INTRODUCTION

Eastern Condiments Pvt Ltd. is one of the FMCG Company which produces and
markets spices and food products. It offers spice powders, spice mixes, massala blends,
pickles, breakfast powders, whole seeds, beverages, rice powders, ready to cook
products, and other products. The company sells its products through distributors. It
exports its products to Europe, the United States, and the Middle east, and internationally.
The company was founded in 1989 and is based in Kochi, India with additional offices in
Mumbai, Delhi, and Bangalore. Eastern Condiments Pvt Ltd. operates as a subsidiary of
Eastern Group.

1.1 OBJECTIVES OF INTERNSHP

An internship is an opportunity offered by an employer to potential employees, called
interns, to work at a firm for a fixed, limited period of time. Interns are usually
undergraduates or students, and most internships last for any length of time between one
week and 12 months. Internships offer students a hands-on opportunity to work in their
desired field. They learn how their course of study applies to the real world and build a
valuable experience that makes them stronger candidates for jobs after graduation.

 To work as an intern and to get familiarized in Marketing functions of the

company.
 To understand the working environment of the corporate world.
 To improve the corporate relations.
 To improve the various skills for professional life.
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1.2 INDUSTRY ANALYSIS

1.2.1 HISTORY OF THE INDUSTRY

The story of Indian Spices goes back to 7000 years into the past. It is cheered
history of lands discovered or destroyed, kingdoms built or brought down, wars won or
lost, treaties made or flouted, favors sought or offered. Today Indian Spices hold the
same spell. Within the past ten years the international trade in spices has grown by leaps
and bounds. An estimated 500,000 tons of spices and herbs valued at 1500 million US
dollars are now imported globally every year. An impressive one fourth of this supply
comes from India. India's exports of spice extracts have shown spectacular growth
attaining over 50 percent of the global market.
In recent years, export of Indian Spices has been taking giant leaps. The Indian
export of spices has crossed the 350 million US dollar mark during 1997-98. This
remarkable achievement is born of a sea change in the industry scenario. From traditional
commodity exports, Indian Spices have evolved into a state-of-the-art industry.
The Spices Board India (Ministry of Commerce, Government of India) is the apex
body for the export promotion of Indian Spices. Established in 1987, the Board is the
catalyst of these dramatic transitions. The Board has been with the Indian Spice industry
every step of the way. The Board plays a far reaching and influential role as a
developmental, regulatory and promotional agency for Indian Spices. By 3000 B.C,
turmeric, cardamom, pepper and mustard were cultivated in Harappa and Mohenjo-Daro,
in the Indus valley.

1.2.2 SPICE INDUSTRY OVERVIEW

Spice industry has been witnessing phenomenal growth rates both in the
international and domestic sector. The growth in this sector can be attributed to the
change in the lifestyle patterns of the consumers all over the world.
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The shift in the consumption trend toward natural products has also contributed to the
increased global demand of spices and culinary herbs. Spice and derivatives market is
booming because these products find applications in a number of industries including
pharmaceutical, medicine, beverages, food processing, personal hygiene products to
name a few.
Developing countries especially in the Asian continent are the major producers of
variety of spices. A large percentage of international and domestic trade takes place in the
dried form. India, Indonesia, China are few of the prime producers of a variety of high
quality spices and also significant contributors to the global spice trade.

India is one of the prime producers and suppliers of raw herbs to USA, UAE etc.
This is a labour intensive industry; therefore producers must have a sound knowledge of
the methods and processes involved in the production of herbs and spices.
USA is the major importer followed by China, Vietnam, the UAE, Malaysia, Saudi
Arabia, the UK, Germany, Singapore and Sri Lanka. Exports to the US stood at around
US$ 340.3 million followed by China at US$ 324.57 million in 2012-13.

1.2.3 GLOBAL INDUSTRY OVERVIEW

The global spice and culinary herb industry comprises of many plants having
diverse end uses including culinary, medicinal etc. The industry also consists of spice
derivatives like essential oils, oleoresin, spice oils etc. According to international trade
estimates about 85% of spices and culinary herbs are traded in dried form. These spices
are cleaned and used in a crude form without any further processing. The world
production and processing centers of spices and culinary herbs remain concentrated in
Europe and in a number of Asian countries. Canada is fast emerging as one of the leading
players in the international spice and herb industry. There are certain countries acting as
leading producers and traders of some particular spices and culinary herbs. For example,
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India is popularly known for being a source of cloves, Indonesia has supplied the global
market with cinnamon and nutmeg and China is the leading producer of ginger.

The global demand for a variety of spices has continued to rise in the past few years
owing to the vast rise in the consumption of convenience foods, snacks, and
confectionary. The widened market for processed and ready-to-eat food products has also
had a vast positive impact on the overall global consumption of a variety of spice.

This report on the global spice market presents an extensive account of the present
state of the market and forecasts the way the market’s will evolve in response to present
circumstances over the period between 2016 and 2024. The report includes vast details
regarding the present and past sales across key product segments and regional markets,
the various growth factors expected to drive the market in the future years, and the
challenges capable of arresting the growth of the market over the forecast period.

Global Spice Market: Drivers and Restraints

One of the key drivers of the global spice market is the increased usage of spices as
natural preservatives in variety of poultry and meat products. Additionally, the significant
rise in demand for healthy and nutrition-rich foods from the health-conscious young
population globally has widened the consumer base of this segment of food products.
Strengthening economies of countries in Asia Pacific have led to increased disposable
incomes and have increased the demand for processed and ready-to-eat foods, which is
anticipated to be a key growth driver of the spice market in the region.

However, the market is expected to be restrained due to the stringent government

regulations related to food additives across different countries such as Canada, U.K.,
France, Italy and the U.S. Several food safety organizations, such as the FDA, have set
high standards regarding the safety of a spice for its intended use for the consumer.
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Global Spice Market: Segmentation

On the basis of product type, the global spice market can be segmented into cardamom,
pepper, cumin, clove, and ginger.

On the basis of application, the market can be segmented into sauces, soups, frozen food,
meat, convenience foods, poultry food, and bakery.

On the basis of geography, the report segments the global spice market into Europe,
North America, Asia Pacific, and Rest of the World (RoW). Of these, North America is
presently the most attractive regional market for spices, followed by Europe, Asia
Pacific, and the RoW. Rising awareness regarding the medicinal properties of spices will
continue to keep the demand for spices high in North America over the forecast period as
well. The region is expected to gain traction and witness high growth in terms of revenue
over the report’s forecast period.

The Asia Pacific market also holds immense promise for spices owing to the flourishing
food and beverages industry in the region. A vast surge in the consumption of fast foods
across countries such as India and China will also drive the market for spices in the
region. China is the leading country-wise market for spices in Asia Pacific, followed by
India. Owing to the presence of vast growth opportunities, several international spice
companies are focusing on expansion strategies in the region, expected to make the Asia
Pacific spice market much more mature and increasingly competitive in the near future.

Global Spice Market: Competitive Dynamics

The global spice market features a fragmented competitive landscape owing to the
presence of a large number of small-scale companies. The market also features some
large companies holding prominent positions, making the market intensely competitive.
Some of the most notable companies operating in the global spice market are Everest
Spices, SHS Group, Ajinomoto Co., Inc., Associated British Foods, Mccormick &
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Company, Kerry Group Plc, Ariake Japan Company Ltd., Sensient Technologies, MTR
Foods Private Limited, Ariake Japan Company Ltd., Olam International, Worlee Gruppe,
DS Group, and Dohler Group.

1.2.4 INDIA'S SHARE IN THE GLOBAL SPICE MARKET

Spice derivatives can be categorized into spice oil, oleoresins and essential oils.
The demand for spice derivatives is also increasing due to the hygiene, standardization
and consistency factor. India contributes nearly 70% to the world spice derivative market.
It exports largely to the US, UAE etc. Indian southern states including Kerala, Karnataka
and Tamil Nadu provide concentrated oils and oleoresins for use in perfumery,
pharmaceuticals, foods processing and industrial chemical industry.
The Indian spice industry is booming with a substantial increase in exports over
the past few years. India accounts for nearly 45% and 30% in terms of volume and value
in the world spice trade.
India is known as the home of spices and boasts of a long history of trading with
the ancient civilizations of Rome and China. Today, Indian spices are the most sought-
after globally, given their exquisite aroma, texture and taste. India has the largest
domestic market for spices in the world. India is the world's largest producer and exporter
of spices of the 109 varieties listed by the International Organization for Standardization
(ISO), as the country produces and exports about 75 varieties of spices. India primarily
exports pepper, Chili, turmeric, ginger, cardamom, coriander, cumin, fennel, fenugreek,
celery, nutmeg and mace garlic, tamarind and vanilla. Processed spices such as spice oils
and oleoresins, mint products, curry powder, spice powders, blends and seasonings are
also exported.
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1.2.5 CURRENT SCENARIO

In order to make available sufficient quantity of quality spices for export, the
Government is implementing programmers for post-harvest improvement and organic
cultivation of spices .It undertakes export promotion activities for all 52 spices which
include marketing as well as removing hindrance and barricades to export. The Indian
spice industry is booming with a substantial increase in exports over the past few years.
India accounts for nearly 45% and 30% in terms of volume and value in the world spice
trade. The booming global spice market also poses good opportunities for the Indian
spice industry to provide quality spices at competitive prices. India faces stiff competition
from China, Malaysia and Pakistan in terms of pricing of the products. Manufacturers
should therefore ensure consistency in supply, product quality, pricing and marketing
strategy to increase the share in exports.
Producers are incorporating latest methods and technologies to ensure higher
quality of spices and herbs. India is one of the prime exporters of pepper, chilies’,
turmeric, seed spices and spice derivatives to the rest of the world. USA, EU, Japan and
Srilanka import these Indian spices in large volumes.
Spice derivatives can be categorized into spice oil, oleoresins and essential oils.
The demand for spice derivatives is also increasing due to the hygiene, standardization
and consistency factor. India contributes nearly 70% to the world spice derivative market.
It exports largely to the US, EU etc. Indian southern states including Kerala, Karnataka
and Tamil Nadu provide concentrated oils and oleoresins for use in perfumery,
pharmaceuticals, foods processing and industrial chemical industry.
Government Initiative Indian Government is providing financial assistance to
farmers, growers and spice producers and has also taken certain steps to ensure the
availability of better quality spices, more hygienically processed spices in order to boost
exports. Indian spice board also provides financial and technical assistance to farmers.
India produces 2.5 million tons to 3 million tons of spices annually. India produces
spices of different categories worth around US$ 3 billion. In terms of volume and value,
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India accounted for 46 % and 23 % in value of global spice trade. (Source: Spices Board
India) India accounts for 25-30% of world’s pepper production, 35 % of ginger and about
90% of turmeric production.
At present India produces around 2.5 million tons of different spice valued at
approximately 3 million US dollar, and hold the premier position in the world. Because
of the varying climate suitable for the spice cultivation almost all spices are grown in this
country.
In almost all the 28 states and six union territories of India, at least one spice is
grown in abundance. No country in the world produces as much variety of spices as
India.
During 2013-14, spices and spice products valued at US$ 2,267.67 million has
been exported from the country as against US$ 2,212.13 million in 2012-13, which is an
increase of 3 per cent.
During the period April-September 2014, India exported spices worth US$
1,152.08 million as compared to US$ 1,073.85 in the same period in 2013.In the same
period; cardamom registered a growth in value of 68 per cent from the exports. Other
spices with notable growth include coriander, cumin, pepper and curry powders with
rates of 52 per cent, 35 per cent, 30 per cent and 29 per cent respectively.
The Spices Board of India works towards the development and worldwide
promotion of Indian spices. It provides quality control and certification, registers
exporters, documents trade information and provides inputs to the Central Government
on policy matters. It participates in major international fairs and food exhibitions to
promote Indian spices, apart from organizing various domestic events.
Indian spices exports in 2016-17 have been able to record strident gains in volume
and value. Spices exports have registered substantial growth during last five years,
registering a compound annual average growth rate of 10% in rupee terms and 5% dollar
terms of value and India commands a formidable position in the world spice trade.
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During 2016-17 a total of 9, 47,790 tons of spices and spices products valued
Rs.17664.61 crore ( us$ 2633.30 million) has been exported from the country as against
8,43,225 tons valued Rs. 16238.23 crore (us $ 2482.83 million)in 2015- 16 registering an
increase of 12% in volume,9% in rupee terms and 6%in dollar terms of value. As
compared to the total export target of spices fixed for the period, the total exports of
spices have exceeded the target in terms of both volume and value. Compared to the
target of tons valued Rs.15725.12 crore (us$2419.25 million) for the financial year 2016-
17 the achievement is 109% in terms of value and 112% in rupee and 109% dollar terms
of value.The following are the various statistics which shows the estimated exports of
spices from India during April- March 2016-17, item wise export of spices and spice
wise area and production.
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TABLE 1.1: ESTIMATED EXPORT OF SPICE FROM INDIA 2015-2016

Sources: Spices Board of India

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TABLE 1.2: ITEM-WISE EXPORT OF SPICES FROM INDIA 2012-2017

Sources: Spices Board of India

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TABLE 1.3: SPICE WISE AREA & PRODUCTION

Sources: Spices Board of India

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CHAPTER 2
ORGANIZATIONAL
ANALYSIS
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2.1 HISTORY OF THE COMPANY

The Eastern Group of Companies founded by Late Mr. M.E. MEERAN, and it
was established in 1969.Mr.M.E MEERAN started his business activities with a
wholesale provision shop at Adimali and first name of the company was “Eastern
Trading Company”.In1975 Eastern agency started in Adimali town.
The “Eastern Condiments Pvt. Ltd started in 1991 with a dream, making good products
available to the common man at the right prices., is a pioneer in the state to produce
packaged curry goods powders, Masala powders, spices and coffee powder. Eastern
Condiments Pvt Ltd. manufactures spices and masalas. It sells South Indian powders,
such as Rasam, Sambar, curry, pickle powder, and other spice powders through its shops.
And it was a growing company in India and also it was a largest manufacturer condiment
and it is one of the leading brands among the South India. The company sells its products
in Kerala and outside Kerala. In the early stages the company exports its products Saudi
Arabia and Arab Emirates and now the company exports its products in various parts of
the world like Middle East, U.K, U.S.A, Australia, Germany, Canada etc.
Eastern Condiments Pvt. Ltd. is a well-established name and Kerala’s largest
manufacturer and market leaders with a market share of 60-65% in Kerala and one of the
leading brands in south India. A name that will hold its own for years to come as the
worthwhile manufacturer, distributers and exporters of the quality network and the
blended spice powders and spices. .

2.1.1 GROWTH OF THE COMPANY

Mr. MEERAN the founder of Eastern Group started his career as a businessman
with a whole sale provision store at Adimali in 1969, named Eastern Trading Company.
He could establish a good sales network in Idukki district and the business man in him
felt the niche for spices powders, at a time household were sparingly using such powders
in their daily cooking.
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As years passed he started an agency business in 1975 named Eastern Agencies at

Adimali where its whole sale shop was located. He had taken products from in and out of
the state and worked as an agency for trading.
The unit shown scope for better prospectus and the present popular Eastern
Condiments was established in 1991.
The story of Eastern curry powders began in a small mountain township called
Adimali, where the best spices from all over India are sourced and powered under most
stringent conditions and packed in consumer packs. The purity and freshness of Eastern
curry powder made ‘Eastern’ a house hold name in India and abroad. The Company
export it products to various countries like Middle East, U.K, U.S.A, Australia, Canada,
and Germany. Today, Eastern has grown into favorite in Indian homes across the world.
Today, Eastern Condiments Pvt. Ltd. is a well-established name as Kerala’s
largest manufacturer of condiments and one of the leading brand among the south India.
An expertise and experience collated over a period of 25 years has borne fruit.
Nationwide branches, two well-equipped factories situated in the Eastern high range of
South India and over two million satisfied household all over stand as solid evidence of
its exceptional repute. A name that will hold its own for years to come as the worthwhile
manufacturers, distributors and exporters of the quality natural and blended spices
powders and spices.

2.1.2 MANAGEMENT
The group is managed by a team of professional and family members. Late Mr.
M.E. Meeran is the founder of Eastern group. Mr. NAVAS MEERAN is the chairman
and the managing director is Mr. FirozMeeran. In addition to that Mr. M.E Muhammed,
Mr. S.M. Muhammad holds the Board of directors. For administration there is corporate
office at Ernakulum.
The company started functioning only with few workers. Now it is grown to more
than 2900 employees, they are working with one heart and soul for the achievement of
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the goals of the organization. The company started functioning only with 25
employees. Now it is grown to more than 2900 employees, they are working with one
heart and soul for the achievement of the goals of the organization. Mrs. Nabeesa Meeran
playing a key role behind the success of the Eastern Group; she has been the principal of
the Eastern Public School Adimali.

2.1.3 DETAILS OF EXTENT OF TECHNOLOGY ADOPTION IN EASTERN

The company has a good IT team for implementing the ERP (Enterprise Resource
Planning) which was started in the year 2001 and was centralized in the year 2005. ERP
enables fast transactions and systematic in all its functions. ERP also helps in generating
MIS reports which help in decision making. The package used in ORACLE and the
present system software’s they are using is windows 7.Intranet in provided among the
various offices at Thenni, Adimali, Chennai, Bangalore, Hyderabad and Ernakulum. The
network main server is situated at
Ernakulum and all the different divisions have their own domain to connect to the main
server. The Eastern Condiment Pvt Ltd is a fully computerized company. Licensed
software’s are used in Eastern.

2.1.4 TECHNOLOGICAL SUPPORT SYSTEMS

EASTERN CONDIMENTS adopted two kinds of technological support systems
for the running of the business. They are ERP and Oracle Forms, ERP which integrate the
information about all the units owned by the eastern Group and Oracle Forms support the
day-to-day operations of every individual unit.

2.1.5 ENTERPRISE RESOURCE PLANNING

Eastern condiments Pvt ltd operates the 3-tier web-enabled ERP system
developed by eastern condiments in association with Oracle India. The ERP system
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connecting all the units situated in India and other foreign merchandising hubs in India
and United States.

2.1.6 ORACLE FORMS

Oracle Forms is a software product for creating screens that interact with an
Oracle database. It has an IDE including an object navigator, property sheet and code
editor that uses PL/SQL. It has developed to run server-side in character mode terminal
sessions. It was ported to other platforms including Windows, to function in a client-
server environment.
The further information regarding the software platforms and its versions and also
which all are the organizations are providing technical supports to eastern condiments are
not available for the public and students. The information is confidential to organisation.

2.1.7 QUALITY CERTIFICATIONS AND ACCREDITATIONS

Eastern has got several quality certifications and accreditations including the
HACCP (Hazard Analysis and Critical Control Point) and ISO 22000.
ISO: 22000: 2005 – In India Eastern was the first company to get ISO 22000 certification
issued by Food Cert BV Netherlands and accredited by RVA, it was the first body in the
world for food safety accreditation.
HACCP- This was the certificate issued by food cert BV Netherlands accredited by RVA
the first body in the world for food safety accreditation.
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2.1.8 ORGANISATION STRUCTURE

Figure: 2.1 ORGANISATION STRUCTURE

Source: Company records
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2.1.9 FUNCTIONAL DEPARTMENTS

 Purchase Department
 Quality control Department
 Production Planning and Control Department
 Production Department
 Engineering Department
 Human Resource and Administration Department
 Finance Department
 Marketing Department
 Information Technology Department
 Export Department
 Taxation Department

2.1.10 PURCHASEDEPARTMENT
The purchasing department will be responsible for providing the materials,
components and equipment required to keep the production process running smoothly. A
vital aspect of this role is ensuring stocks arrive on time and to the right quality.
Performance of a manufacturing firm always depends on the efficiency of its purchase
department. The various raw materials needed for the production is purchased by this
department. If the materials are purchased at right time at the right quality from the right
suppliers it results in production of materials as per the request of inventory control
section. Mainly eastern is purchasing the products from the reputed vendors and the
import goods or raw materials from countries like Srilanka and other states of Kerala
such as Gujarat, Tamilnadu, and Karnataka. In the purchasing department about 40
employees are working.
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OBJECTIVES OF PURCHASE DEPARTMENT

 To provide uninterrupted flow of materials and service for company operations
 To procure materials economically at a cost consistent with the quality and service
required. However, generally all purchases may be attempted at the lowest cost.
 To find reliable alternative source of supply
 To buy at the most economic order quantities
 To buy the best value, a combination of right quality at the best price with the best
supplier service
 To maintain good relations with vendors
 To promote source development
 To develop and maintain good buyer-seller relationship.

FUNCTIONS OF PURCHASE DEPARTMENT

The main functions of the Purchase Department are defined as follows:
 Procurement of stores through indigenous and foreign sources as required in
accordance with the rules in force.
 Checking of requisitions/purchase indents.
 Selection of suppliers for issue of enquiries.
 Issuing enquiries/tenders and obtaining quotations.
 Issue of Purchase Orders.
 Follow-up of purchase orders for delivery in due time
 Verification and passing of suppliers’ bills to see that payments are made promptly.
 Correspondence and dealing with suppliers, carriers etc., regarding shortages,
rejections etc., reported by the Stores Department.
 Maintenance of purchase records.
 Maintenance of progressive expenditure statement, sub-head wise.
 Maintenance of vendor performance records/data.
 Arrangement for Insurance Surveys, as and when necessary.
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PURPOSE AND SCOPE OF PURCHASE DEPARTMENT

To lie down a procedure for purchase and to evaluate suppliers rate and develop
them so as to select suppliers on the basis of the ability to meet the quality requirements.
The scope involves;
 Purchase of raw materials , items such as dry chillies, coriander, turmeric, cumin,
fenugreek, fennel, rice, fruits and vegetables, preservatives, salt etc and outsourced
etc, purchased at Ernakulum, Adimali, and Theni
 Registration of potential suppliers
 Evaluation of existing suppliers

PURCHASING PROCEDURE
 Evaluation of existing suppliers for raw materials
This is the first step in the purchasing procedure. The evaluation of the suppliers is
mainly done on the basis of rating them. There are mainly three types of rating methods
they are;
 Quality rating
 Supply rating
 Delivery rating

QUALITY RATING
Quality rating is done on the basis of the quality of the raw materials before
purchasing it. The raw materials are tested by the quality control department and make
sure that the raw materials are of best quality and non-hazardous.

SUPPLY RATING
The supply rating checks the supplier’s ability to supply the raw materials at
right time.
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The rating is done on the basis of a quality technique; the maximum mark given is 15,
which is given to the supplier who supplies the raw materials on or before the
prescribed time. The total mark is calculated on 70 and it is given to the accepted
suppliers.

DELIVERY RATING
This is calculated on the basis of the correct time of the delivery of the materials
 Registration assessment of potential suppliers
 Purchasing order
 Purchasing
 Verification of the purchases products

DIVISION OF PURCHASE
In Eastern the purchase can be done in five small divisions. The purchase department is
divided into small groups because of convenience. The five divisions in purchase
department are given below.

 Packing division
Product mainly deals with purchase of packing materials. Packing materials are
purchased from Leets, Reliance, and Omni.

 Mechanical purchase division

It is focused on purchasing of machinery items and their parts. Machineries are purchased
from Ernakulum and some are imported from foreign countries.

 Electrical purchase division

It is deals with purchasing of electrical components
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 Automotive purchase division

The automobile equipment’s are purchased from TVS, Automobile Eicher etc.

2.1.10.1 STRUCTURE OF PURCHASE DEPARTMENT

Managing Director

FH Procurement

Asst. Manager

Senior Officers

Officers

Figure 2.2
Structure of purchase department
Source: Company records
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2.1.11 QUALITY CONTROL DEPARTMENT

Functions of this department are to ensure that the quality objectives of the firm.
Quality is periodically measured and compared against product quality requirement. A
major purpose of this department is to ensure that the quality policies of the firm one are
conformity with the objectives of this department. Company had a well-equipped
laboratory with all facilities which costs Rs. 4 crore.
Before packing each sample of products is tested in the lab and packed only if they get
the good quality certification from the lab. And if any products are returned by the
customers will be tested and find out the reason for rejection.
In three states quality is assured
 Raw material form
Quality is checked when raw materials are purchased from suppliers
 Semi-finished form
Check whether specifications of company are meeting
 Finished form
Here mainly check the packing labels If there are n bags randomly bags are
checked. Under quality control department there is research and development department.
They make recipe changes and makes new products. Lechma masala is a new product for
UP.
OBJECTIVES OF QUALITY CONTROL DEPARTMENT
To bring down the total Alfa toxin level of chilly and chilly based products
 To determine the moisture level in the products
 To establish testing facilities to pesticide residue
 To maintain the quality according to the customer requirements
 To maintain the quality in accordance with the ISO 22000

DUTIES OF QUALITY CONTROL DEPARTMENT

 To ensure that the assurance budget are not exceed
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 In charge of quality assurance department

 In charge of day to day quality check

2.1.11.1 STRUCTURE OF QUALITY CONTROL DEPARTMENT

MANAGING DIRECTOR

FH TECHNICAL

MANAGER TECHNICAL

ASST.MANAGER

 SR.OFFICER
SR.MICRO SR.OFFICER
BIOLOGIST TECHNICAL IP& C

MICRO
OFFICER OFFICER
BIOLOGIST

Figure 2.3
Structure of quality department
Source: Company records
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2.1.12 PRODUCTION PLANNING AND CONTROL DEPARTMENT

Production planning and control department is the intermediary between
production and marketing departments. Production planning and control is the
department which plans everything regarding production. It finds out what is to be
produced, when, what quality and it even informs the purchase department about what
raw materials to be purchased for production. The main function of this department is to
meet the requirements of the demand.
PPC regulates stock inflow and out flow with the help of ORACLE software so
the amount stock will be readily available. They make plans according to the data
provided by the marketing department. Based on this, they give instruction to purchase
department and the production department. Production is according to the requirement
and will depend on the seasonal demand.
The monthly production of Eastern is 240000 tons. In a single shift 70 tones are
being produced in the PPC department 6 employees are working. This is based on
monthly demand. Every sales executive gives the order from retailers. Based on the
above facts the PPC department gives the instruction to both production and purchase.

OBJECTIVES OF PPC DEPARTMENT

 Increase profitability of the company

 Quality control
 Maximize output with minimum input
 Minimize cost
 Coordination between men and machines
 Establish routes and schedule of work
 Ensure operations are run efficiently and as planned
 Optimize the use of resource, material, machines etc.
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PROCEDURE
They make plans according to the data provided by the marketing department for
the coming period. Based on this they give instructions to purchase department and
production department. They plan for 3 months later it divided on monthly basis and
finally supervisions in production scheduling on weekly basis. Production is according to
the basis of the requirements and will depend on seasonal demand. The total number of
employees in this department is 25.

2.1.12.1 STRUCURE OF PPC DEPARTMENT

MANAGING DIRECTOR

FH MANUFACTURING

MANAGER PPC

ASSISTANT MANAGER PPC

SENIOR OFFICER PPC

OFFICER PPC

Figure 2.4
Structure of PPC department
Source: Company records
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2.1.13 PRODUCTION DEPARTMENT

Production is a process of converting input in to output. Technically speaking, a
production is concerned with step by step process of raw material into finished goods.
For a manufacturing concern like Eastern, production department plays very important
role.
OBJECTIVES
1. Design of the product
2. Design of the production system
3. To ensure production according to the plan and requirement.

FUNCTIONS OF PRODUCTION DEPARTMENTS

 Product selection and design
 Process selection
 Production planning
 Quality control
 Inventory control
 Plant layout and material handling
 Cost control

The first step in the production takes place both at Adimali and Theni where the
raw material (chilly, turmeric, coriander) needed are purchased in bulk are cleared,
roasted, crushed, powdered and packed and dispatched to Adimali for further packing.
The distribution is handled by the company itself.Eastern Condiment deals with
production and packing of curry powders, masalas, instant pickle powder and processing
of pickles. The company has a production capacity of 12 tons per day. The company at
Theni has a production capacity around 20 tons per day.
 30

From the production point of view, latest techniques are used in preparing powders.
Producers like steam sterilization are followed to maintain hygiene.
Statutory Quality parameters are employed in every sphere of production. To ensure that
the spice reach the consumer in fresh conditions at a minimal cost, the company follows
international packing standards to protect, preserve and presents products. For bulk
packing, the VACCUPAC system is used where in products are packed in vacuum, thus
protecting the powders from fungal infection, moisture, oxidation etc.
Production function performs according to instructions from the PPC. PPC gives
monthly indent which is converted in to weekly plans by the production department. A
stock of goods for 3 days production is kept with the department in case of contingencies.
In production a normal waste of 2 % to 5 % is expected. All details regarding production
are given to PPC daily. The department has 14 vehicles for the purpose of transferring
raw materials. The department has around 750 workers. The production is dependent on
the skill and experience of the workers. The productivity is around 75%.

QUALITY ASSURANCE
The company follows stringent hygienic measures which are applied with regular
laboratory testing. The Indian spices board with their spice house certification has
recognized the company’s obsession with quality and hygiene. Eastern has also achieved
the highest ranked approvals for quality, the Hazard Analysis Critical Control Point
(HACCP), ISO 9002 certification and ISO 22000 certification.
The company ensures that superior standards are at every level- right from
processing raw materials to packing the final product. Old methods of powdering using
new technology are what the company believes in wooden spatulas are used to mix the
powders and huge aluminium vessels are used to roast spices, grinding is done at
required temperature, using micro pulverizes and the unique flavor lock technique, so that
the oils in the spices are conserved , giving out the right flavors.
 31

LOADING AND UNLOADING

Loading and unloading of raw materials are done by workers in Eastern itself. The
loading and unloading is done under piece rate system.

SCHEDULING
To analyze the demand for the past 3 months sales they will schedule the raw materials,
working time, number of workers needed and product capacity.

INVENTORY MANAGEMENT
The company didn’t manage inventory they will sell whatever they produced. They
manufacture only according to the demand by analyzing and forecasting.

RESEARCH AND DEVELOPMENT

Research and development works on the researches about how to improve taste and
quality of products.

SAFETY MEASURES
Workers are wearing aprons, masks, caps, while working in the production department.
The company provides necessary steps for preventing fire and natural hazards.

MACHINERY MAINTENANCE
The company keeping a separate department called maintenance department for the
maintenance of the machinery, automobiles, electrical etc.
 32

2.1.14.1 MANUFACTURING FLOW CHART

Chilies,
coriander, Cleaning Drying Roasting
turmeric &spices

Mixing Powdering

Packing

Marketing

Figure 2.5
Production flowchart
Source: Company records

PRODUCT STANDARDS
Eastern is the first company in India and second company in Asia got the ISO 22000
certification.

 In the year 2000-2005 Eastern got the ISO certification 22000. The organisation shall
ensure the following basic requirements for the implementation of ISO 22000.
 33

 The food safety hazards that may be reasonable expected to occur relation to product
within the scope of the system are identified evaluated and controlled in such a
manner that the products of the organisation do not directly or indirectly harm the
consumers.
 Communicate appropriate information through the food chain regarding safety issues
related to its products.

2.1.14.2 STRUCTURE OF MANUFACTURING DEPARTMENT

MANAGING DIRECTOR

FH MANUFACTURING

SENIOR MANGER PRODUCTION

SR. SUPERVISOR ASST.MANAGER PLANT IN

CHARGE

SUPERVISOR SUPERVISOR SR.SUPERVISOR

CHLSED PKL
WORKERS WORKERS SUPERVISOR

WORKERS
Figure 2.6
Structure of Production Department
Source: Company records
 34

2.1.15 ENGINEERING DEPARTMENT

Engineering department of Eastern are responsible for keeping the plant and
equipment’s in good condition. Engineering Department of Eastern has four sections,
 Electrical
 Mechanical
 Stores
 Automobile
OBJECTIVES OF ENGINEERING DEPARTMENT
 Optimize the use of available funds, personnel and facilities and equipment through
the effective maintenance management methods.
 Systematically identify maintenance needs and deficiencies and capital improvement
needs at all field stations.
 Enable preparation of service maintenance and construction budget request using
systematic, standardized procedure.
 Monitor a document corrective actions, project expenditure and accomplishment.
FUNCTIONS OF ENGINEERING DEPARTMENT
 PERIODIC MAINTENANCE
Machines undergo wear and tear problems .So they have to be periodically maintained by
applying oil, grease etc.
 PREVENTIVE FUNCTION
Preventive function done to alert breakdowns, improve efficiency of working to keep a
routine monitoring of the machineries. There is a routine maintenance schedule and the
preventive maintenance is done according to it. This is done in weekly or monthly basis
according to the condition of the machine.
 BREAK DOWN MAINTENANCE
This is done to restore the machine back to the work if it undergoes a break down. It is
done according to the priority of the machine. This is done in minimum possible time, so
that production of the plant is not affected.
 35

2.1.15.1 STRUCTURE OF ENGINEERING AND TECHNOLOGY

FH ENGINEERING

SR MGR
ENG & PROJECTS

MGR ENGINEERING

WORKSHOP SR.OFFICER SR.OFFICER

IN CHARGE ELECTRICAL ELECTRICAL

SUPERVISOR SUPERVISOR SUPERVISOR

TECHNICIAN TECHNICIAN TECHNICIAN

WORKER WORKER WORKER

Figure 2.7
Structure of Engineering Department
Source: Company records
 36

2.1.16 HUMAN RESOURCE AND ADMINISTRATION DEPARTMENT

Human resource is the real assets of an organization. If treated well, they can take
organizations to commanding heights. Organizations’ are generally driven by a set of pre-
determined goals. They employ physical, financial and human resources in order to
achieve goals. Organizations thus depend on people for their survival and growth. In a
similar way people need organizations. The success and failure of every company
depends upon its human resource. The vast majority of people work to support
themselves and their families. But people work for many other reasons other than
economic security, they want to gain recognition and achieve status or to test and stretch
their capabilities. It is a fact that the people are vital for the effective operations of a
company as human effort and brains are the main driving force behind the organization.
Personal management function should not be confused with the personal
department of an organization. Personal management function is performed by all
managers at various levels in the organization. Generally personal department is assumed
the operative function of employment, training, development and remuneration etc. These
functions are performed by human resource department. Employment of competent and
specialized persons at various levels is one important reason for the continuous success of
Eastern. Moreover employment of women at certain key areas of operations avoids
unreasonable labour problems to an extent. The key factor in the growth of Eastern is
mainly the good and healthy employer-employee relationship. About 2800 employees are
working with a mutual relationship in the organization. In eastern maximum 80% people
are women workers. The workers keep discipline in the organization and also they do the
works very carefully.
 37

OBJECTIVES OF HUMAN RESOURCE DEPARTMENT

 Manpower planning
 Recruitment
 Training and development
 Wage and salary administration
 Grievance redress
 Personal counseling
 Compensation and benefits
 Performance evaluation

RECRUITMENT AND SELECTION

Recruitment is only the process of searching for prospective employees and
stimulating them to apply for jobs in the organization.. In an organization vacancies are
arising in many ways such as registration, termination of the employees, death of the
employees, promotion or transfer etc. have to be filled by recruitment and selection.
Recruitment procedures are:
In eastern they are following two types of recruitment procedures direct recruitment
and internal recruitment.
A) Direct method
Direct method means they are directly gives advertisements in Medias. In Eastern this
method is frequently used for recruitment. The firm places jobs advertisements in
Malayalam, English newspapers and T.V media tries to attract as much capable people
from outside.
B) Internal recruitment
The company is filling the post by efficient and skilled workers.
 38

SELECTION
Selection is the process of picking up individuals with requisite qualifications and
competence to fill jobs in the organization. In Eastern, the selection process is only
through direct interviews. The employees are transferred to different departments on the
basis of their skills and abilities. They conducting a test also but the test is conducted
only for senior position.
TRANINING AND DEVELOPMENT FOR EMPLOYEES
Training may be viewed as a systematic and planned process which has its
organizational purpose to impart and provide learning experiences that will bring about
improvement in an employee and thus enabling him/her to make his contribution in
greater measure in meeting the goals and objectives of an organization. The training
facilities are conducted by the senior HR and administration. All the personal shall be
aware of their roles and responsibilities in protecting product from contamination or
deterioration.
TRAINING NEED ANALYSIS
The training can be evaluated any of the 3 ways: Input, throughput and output.

TRAINING REQUIRED TO:

In an organization training is required for many areas. They are
 Fire and safety
 Legal update
 Communication skill
 ISO documentation
 Leadership development
 Pollution control
 39

ASSESSMENT TRAINING EFFECTIVENESS

The HOD or the concerned supervisors are checking the effectiveness of the
training program. Periodical assessment of training program will be carried out and also
and a routine supervision is carried out in the organisation.
Methods of measuring the training effectiveness are:
 Personal/ group interview
 Questionnaire method
 Feedback from events or practices
 Submission of reports
INDUCTION AND ORIENTATION
Induction means when a new employee joins an organisation, he should be
welcomed as a new member of the organisation and must be helped to get acquainted and
adjusted with his fellow employee and work environment. The new employee is a
complete stranger to the people, work place and work environment. He must be
introduced with the fellow employees, to the working conditions, rules and regulations
etc. The first day of employment is long remembered by most of the people. Initial
impression counts much, in the attitude of the employee towards the job and the
company.
TYPES OF ORIENTATION
 Formal
 Informal
 Individual
 Collective
PERFORMANCE APPRAISAL
Eastern is following a special type of system for appraising the workers that is
KRA system i.e., the KEY RESULT AREA. Here the performance of individual
employee is evaluated by his superior officer.
 40

The officer will evaluate the employee’s performance on the basis of result produced by
them and gives a report to the board for a particular period of time.
If the board is satisfied, he/ she will forward it to the top management by recommending
incentive or promotion. This procedure mainly happens between a periods of 6 months.
WAGE AND SALARY
The workers are paid in two types of wage system:
o Piece rate system
Under piece rate system of payment, wage is paid on the output produced and not on
time. The production goes up when wage are paid in according to piece rate system
payment. In the packing section they are following the piece rate system.
o Salary system
This mode of payment is applicable for the rest of the workers, which also includes the
loading and unloading workers.
NON MONITARY BENEFITS
The company provides a lot of non-monitory benefits to their employees. Some of them
are as following,

1. Transportation
Transportation is provided to the employees to different destination points and a
very small marginal amount is deducted from their wage or salary.
2. Personal protective equipment’s
Personal protective equipment’s like head covers, aprons and uniforms are also
provided to the workers in the packing section.
3. Medical insurance
The employees are provided with medi-claim policy, which gives free medical
insurance to the employee and his/her family. ESI coverage for the employees who is
having the salary below 21000 and for others regular medical insurance benefits.
 41

4. Pension scheme
The scheme has been formulated for those employees who have retired from their
work. All the employees are provided the pension with all the incentives as per the
statutory norms.
5. Annual medical check up
The employees are provided with free annual medical check-up facilities
6. Canteen facilities
Canteen facilities are provided to all the employees where they get free food
7. Tours and picnics
Tours and picnics are conducted once in a year which increases the motivations and
initiatives of the employees in additions to the fair and just wage incentive system.
For the effective administration and working of the company, weekly meetings are
organized to discuss various issues and working of the company. The chairman, the
managers &department heads are presented in the meeting.

GRIEVANCE AND REDRESSAL

Generally grievance means any factor involving wage, working hours or
condition of working environment. In Eastern all work as family and all workers are free
to make know his supervisor if he has any grievance. The company has kept some
persons in the company itself where the employee can directly come and tell his problems
in any case, and it will speedily reach towards the management. For this the company
also conduct some training programs and meetings where the employee can speak about
any problem he has in the company.
 42

2.1.16.1 STRUCTURE OF HR DEPARTMENT

FUNCTIONAL HEAD HR

SENIOR MANAGER

HR & ADMINISTRATION

ASSIATANT MANAGER

HR & ADMINISTRATION

SENIOR OFFICER

OFFICERS

WORKERS

Figure 2.8
Structure of Human Resource department
Source: Company records

2.1.20 FINANCE DEPARTMENT

Finance is the lifeblood and nerve centre of a business, just as circulation of blood
S
is essential in the human body for maintaining life, finance is a very essential to smooth
running of the business. It has been rightly termed as a universal lubricant which keeps
the enterprise dynamic. Finance department deals with planning, organizing directing and
controlling financial activities like procurement and utilization of fund and distribution of
earning to owners. The annual turnover of the company per year is 876crores. Per month
balance sheet is prepared.
 43

Cash of purchased materials is given from accounting department. To some extent

advanced payment is also given. If bad debt occurs then sales team talk with
corresponding agents and follow up is made from sales team. Expense budget, capital
goods budget, HR budget etc are prepared by each department and it is given to finance
department. From one year’s budget, one month budget is prepared. 1crore to 2 crore was
spent for advertisement on last year. Through banks, salary and bonus is given to
employees. But Bata is providing through cash counters. Pamtech is using by sales
executives for account maintaining. In finance and accounting section there are 12 staffs
in eastern condiments. There are internal auditors and external auditors for eastern.
External auditing is doing by Desolate Company. Here there is income tax inspection
also.

FUNCTIONING OF FINANCE DEPARTMENT

Finance function is the most important of all business functions. It remains a
focus of all activities. It is not possible to substitute or eliminate this function because the
business will close down in the absence of finance. The need for money is continuous. It
starts with the setting up of an enterprise and remains at all times. The development and
expansion of business rather needs more commitment for funds. The funds will have to
be raised from various sources. The sources will be selected in relation to the
implications attached with them. The receiving of money is not enough, its utilization is
more important. The money received will have to be returned also. If its use is proper
then its return will be easy otherwise it will create difficulties for repayment. The
management should have an idea of using the money profitably. It may
be easy to raise funds but it may be difficult to repay them. The inflows and outflows of
funds should be properly matched.
 44

FUNCTIONS OF FINANCE DEPARTMENT

 Monitoring the process of budget achievement providing taxation pinning and
advisory service to the company.
 Evolve an audit manual.
 Advising management on funds, utilization and implementation
 Preparation of corporate plans, annual plans and budget
 Preparation of financial statements and thus identifying the financial strength and
weakness of the firm by properly analyzing and interpreting the financial statements.
Finance and cost functions are headed by the director of finance and accounts, IT-
Internal auditing section etc, are the major auditing gangs giving their upper hand for
the smooth functioning of finance dept.
 Olden days Tally was used for the various financial operations but now Eastern have
their own software ORACLE specially made for the financial purpose and the
banking partners is FEDERAL BANK.

RECEIVABLES&PAYABLES A/C
The company also has credit sale and purchase. They give bills to their debtors
and receive bills from creditors for credit dealings. The bills are transferred to cash within
short period. The main success behind the effective financial management of eastern I
that the very less bad debts they are having. In case of bad debts its very rare one. That is
somewhat because of the policies of the firm and their assessment of the retailers as well
as wholesalers. They are providing the credit facility to those who are dealing with the
firm from the starting period of the company.
 45

INVESTMENTS
The company invests on FDI on the basis of IRR. The US based firm McCormick
& company is invested in the firm around 26% of the total investment of the company.

SOURCES OF FUND
The main source of fund is from sales and overdraft, from Federal banks Adimali
branch. There is a 3 cores loan for Eastern; the profit is reinvested in Eastern. Also
company is having some of the shares as per the memorandum of association and the
prospectus issued by the company.

TAX PAYMENT
A separate department under the finance department called TAX department. Tax
payment is through e-filling in 15th day of every month. The company pays a sales tax of
18 crore per year.

PRICING BENEFITS GIVEN TO EMPLOYEES

 Gratuity
 Provident fund (12%)
 Bonus (11%)

WORKING CAPITAL MANAGEMENT

Working capital managed by the company by using overdraft from bank. The
company is dealing with the federal bank.
 46

2.1.17.1 STRUCTURE OF FINANCE DEPARTMENT

MANAGING DIRECTOR

CHIEF FINANCE OFFICER

DY.MANAGER FINANACE DY.MANAGER

ACCOUNTING

SR. OFFICERS SR.OFFICERS

OFFICER OFFICER

Figure 2.9
Structure of Finance department
Source: Company records

2.1.18 MARKETING DEPARTMENT (KERALA MARKETING)

Marketing is the core of all management functions. One of the important reasons
behind the success of the company is the marketing strategy compared to their rivals. The
system followed by Eastern is very unique and it has been very effective. They deal with
the wholesalers and retailers directly at their doorstep with the help of around 239
vehicles going through many routes covering the entire state.
 47

Average sale of Eastern is 20,00,000 kg\month in normal season. During special

season like “Onam” its sales increases by 28,00,000 kg\month. Price rate of products
changes according to different season.

OBJECTIVES MARKETING DEPARTMENT

 Developing marketing strategies

 Capturing marketing insights
 Building strong brand image
 Delivering value to consumer

DIRECT SALES
This peculiar feature of Eastern curry powders helped it to vary from other
companies. The group directly distributes the products to retailers in Kerala, from
manufacturer products goes to retailers then goes to end consumers. The company has
around 239 vehicles which go on around 78 routes covering the entire state. Marketing
department has 450 workers in Kerala market. A sales executive, sales assistant and
driver will be on each van to go for the sales. The sales executive collects orders and
bills. The sales assistant performs loading and unloading operations. For 10 vehicles there
is a senior sales executive. For eastern there is no brand ambassador. Based on quantity
purchased dealers get benefits. No commission is provided to any dealers. Chilli powder
is the most selling item of eastern. Training is providing to sales employees.

The various sales techniques consist of:

 Route sales
 Factory fresh outlets
 Intercompany sales
 Export sales
 48

Company has ten depots, which the main ones are located at Kozhikode, Kottayam, and
Trivandrum Trissur&Okkal. Sales target is fixed only after looking the previous 3 months
sale. More sales are done in Kottayam (Dts). The sales executives for each route give the
orders to be dispatched to each sale depot.
He also takes care of the billing and cash transactions. After making a sale, a sale invoice
is made and the summary is given to the cash department.
After the delivery of goods, the vans return and by verifying the order form, the
stock is checked. The accounts are maintained on a weekly basis. The company has
around 40000 retailers. Mainly cash transactions are undertaken and credit facilities are
entitled to only around 200 parties.
A string of van carrying freshly powdered spice is a common sight on the
mountains. This is one of the important advertisement techniques of the company. The
advertisement through these vehicles has no additional cost. There are hundreds of
vehicles carrying freshly powdered spices distributing across the state. It gives maximum
publicity and advertisement to the company and the brand.
The meeting of the sales executive is held every week after they return from their
different routes. Here, every aspect of the weekly sales will be discussed, and any
problem arising can be bought to the notice of the management.
By direct distribution the company has achieved a lot of benefits. Some of them are as
follows;

 They can deal with the wholesalers and retailers directly at their door step
 The company can avoid the role of intermediaries in the distribution of the product.
It helps to avoid unnecessary commission, brokerage and other related expenses
 They can maintain a good relationship with the wholesalers and retailers
 The company’s own vehicle undergoing distribution aids to give an important
mode of advertisement in addition to the other media advertisement.
 49

Eastern Condiment has entered in to world market in the recent years. In India it is
capturing both urban and rural markets. In Kerala it is the market leader with more than
60-65% market share to almost all its products. In Tamil Nadu and Karnataka the
company holds 20% share and it is gaining strength.
It is also to be noted that 50% of the market is still using home made products; some of
the market is still untapped. So there is lots of growth potential for the economy.
PRICING
Eastern is the price leader in Kerala market. And its products have higher price when
compare with other products. But it is accepted because of its quality and good will.

COMPLAINT HANDLING
It is done on a weekly basis by the sales representatives as they are meeting the retailers
and customers directly and the complaints are collected. Later it will be reported in the
weekly meeting.

PROMOTIONAL ACTIVITIES
Company introduces some promotional measures like card scheme to motivate their
retailers. It uses advertisement for promotional activities. They also make some tours and
give awards to some of the retailers. Company is conducting dealers meet in a year. Now
the company is giving more importance for the promotions of EASTEA. Sales target is
fixed once in a 6 month and is hoping for 10% growth every year.
 50

2.1.18.1 STRUCTURE OF MARKETING DEPARTMENT

GM MARKETING (KERALA SALES)

MANAGER SALES ADMIN

MARKETING STAFF

ASSISTANT

MANAGERS

SALES OFFICER

SALES TEAM

Figure 2.10
Structure of marketing department (Kerala marketing)
Source: Company records
 51

2.1.19 INFORMATION TECHNOLOGY DEPARTMENT

Artificial intelligence is necessary for development of mankind. Today the term
information technology has bellowed to encompass many aspects of computing and
technology, and the term is more recognizable than ever before. The information
technology umbrella can be quite large, covering many fields. IT professionals perform a
variety of duties that range from installing applications to designing complex computer
network and information data bases.

DUTIES THAT OFFICIALS PERFORM IN IT DEPARTMENT

 Data management
 Computer networking
 Computer engineering
 Data base system design
 Software design
 Management of information system
 System management or system administration

OBJECTIVES OF IT DEPARTMENT
 Ensure the protection and security of data
 Minimize duplication of effort, services and resources
 Eliminate inefficient and costly redundancy
 Eliminate non compatible standards and architectures
 Identify obstacles for departments wanting to move computing operations to the
division of information technology and solve it immediately.
The whole organization is computerized. All the departments are connected via networks.
Both local and wide area networks are use. Eastern uses ORACLE based ERP, which has
been customized to suit the needs of their particular organization. The networking is done
through a BSNL base line. It uses windows 7 as the operating system.
 52

The company has a good IT team for implementing the ERP (Enterprise Resource
Planning) which was started in the year 2001 and was centralized in the year 2005.
ERP enables fast transactions and systematic in all its functions. ERP also helps in
generating MIS reports which help in decision making. The package used in is ORACLE.
Intranet in provided among the various offices at Theni, Adimali, Chennai, Bangalore,
Hyderabad and Ernakulum. The network main server is situated at Ernakulum and all the
different divisions have their own domain to connect to the main server. The company is
now having its own mobile applications in order to monitor the daily distribution of the
goods. The problem that is being faced by the company is mainly the network errors.
Palmtec based systems which are popularly used in KSRTC for billing is being adopted
by Eastern for their retail and wholesale billing distributions. They use the barcode
technology for the maintenance of package of goods as a section.
The Eastern Condiment Pvt. Ltd is a fully computerized company. Licensed
software’s are used in Eastern. In which 150 machines are connected using four servers.
They are;
 Data base server
 Application server
 Domain server
 Backup server
The extent of computerization is done mainly on to considerations;
 Considering the amount of data
 Accuracy needed

The company has centralized data base password control to restrict unauthorized access.
IT department has a powerful back up facility. In each system a separate folder is created
for backup facility .Client user saves data into this folder. The user can access data only
when he knows the particular password and login ID.
 53

SYSTEM CONFIGURATION
 RAM 2GB
 HD 180 GB

IDENTIFICATION OF ERROR
It’s a fully centralized scanning process which is done from the corporate office
which will help the firm to work better and perform more effectively with proper
monitoring to avoid errors and maintain the proper status of the working.

SYSTEM PROTECTION
MS fore friend Antivirus used for system protection of the computer systems and
a well-established firewall is being followed by the company.
 54

2.1.19.1 STRUCTURE OF I.T DEPARTMENT

MANAGING DIRECTOR

FUNCTIONAL HEAD IT

ASSISTANT MANAGER

SENIOR OFFICER

OFFICER

Figure 2.11
Structure of IT Department
Source: Company records

2.1.23 EXPORT DEPARTMENT

Eastern foods started exporting in the year1995. Today eastern is exporting its
products to almost all Gulf countries, and to the different parts of the world, where the
company has its own distributions. The company exports above 100 tons per month. It’s
mainly called as export marketing department.
 55

OBJECTIVES OF EXPORT DEPARTMENT

 Conduct research to find out right market
 Devise marketing strategies for the target market
 Understand the legal and regulatory issues
For exporting the Eastern condiments have a branch at Okkal in Kerala where
special packing for exports is done and where stuffing of goods is also done. The rest of
the procedural work is done at Adimali. Major export destinations for the company are
Middle East, USA,

Australia, Canada,and UK. The company is also planning to enter like Japan and other
European countries. The major portion of the export is into Dubai. Each container has a
capacity of 12 tons and monthly 50-60 containers are exported. In the international
market the product is marketed through distributors on commission basis
Eastern Condiment Pvt Ltd is always maintaining high quality and effective
distribution in the overseas market too. The company has well equipped laboratory with
qualified and specialized chemist for quality checking. For exporting the Eastern
Condiments have branches at Okkal and Erumalappadi in Kerala. Stuffing and packing is
carried out here itself. The rest of the procedures related to exports are done at Adimali.
The exporting is increasing year by year. The export had 50% growth in the previous
years. The company is doing exports through shipment. Company uses its vehicles to
send products to Cochin seaport. The company is having an increased expiry of goods up
to two years.
Time required for transportation
- Dubai 5 to 7 days
- Gulf 15 days
- USA 1 month
- Europe 30 days
 56

For export Eastern has import and export codes. It also has spice board
registration for exporting spices. Each country has its own specifications and
requirements for the export product which has to be meet by the company before
exporting. All exports are done through Cochin seaport. Each container which is exported
will be checked before dispatch. About 500 products are exported. Some items like
pickles are meant only for export and are not available in the local market. The export
division of Eastern had a 50 % growth in last year. The turnover from exports alone for
the company was 50 corers. All the transactions are done in Dollars only, including for
Middle East and other countries

ACHIEVEMENTS
Eastern is the leading exporter of condiments from India. Eastern has received the
spices board award for the best exporter continuously for the last 12 years.

DOCUMENTATION PROCEDURE
All negotiations regarding the export procedures are done through banks. The
goods are dispatched at the Cochin seaport and the company meets the expenses from the
point of dispatch to the boarding point and the documents are handed over the bank.
The overseas distribution gives a purchases order to the company upon the
confirmation of the order with prices the documents such as invoice, packing list are
prepared and shall be approved by export manager and those documents are sent to C & F
agent along with the purchase order of the overseas buyer. On receipt of those documents
the C &F agent sends it to the customer’s authorities and obtains permission for stuffing.
According by the information regarding availability of vessel is communicated to
the company. Based on the information given by C & F agent, information about the
stuffing is given to the central excise authorization for stuffing i.e., the house stuffing
procedure. After stuffing, the details of shipments are sent to the overseas buyer for their
information
 57

It is ensured that the C & F agent for onward submission to the bank prepare the
following documents and submit to the Director under copy to the manager (exports) for
verification and records of export marketing department.

 Invoice
 Packing list
 Bill of lading
 Bill of exchange
 Certificate of origin
 Health certificate

On receipt of the above original documents, it will be verified and approved by

director before presentation to the bankers. The document copies received by manager
(exports) shall be verified and signed by his/her before taking as records. The documents
are handed by over to the bank for negotiation and the bank after negotiation sends the
documents to our overseas buyer’s bank. Copies of the documents are maintained.
 58

2.1.20.1 STRUCTURE OF EXPORT DEPARTMENT

MANAGING
DIRECTOR

SENIOR MANAGER
EXPORTING

SR. OFFICERS

OFFICERS

Figure 2.12
Structure of Export Marketing department
Source: Company records

2.1.21 TAXATION DEPARTMENT

It works under finance department, but it independently executes its works. From
the accounting department they collect data. For the export Eastern need not want to pay
tax. This is possible through H-form. Each product has its own tax. For example chilli-
4%, rice-1%.Monthly the tax is calculated.
Eastern mainly pays three type of taxes, they are
 SALES TAX
It includes value added tax (VAT) and Direct tax. A registered company have to pay 30%
of the net profit as direct tax, and Eastern is paying it without any default.
 59

 SERVICE TAX
Eastern is paying 12.36% as service tax

 EXCISE DUTY
For some product Eastern has to pay excise duty, especially for plastic that is used in
packaging. The excise duty ranges from 2- 16%.

2.1.21.1 STRUCTURE OF TAX DEPARTMENT

COMPANY SECRETARY

DEPUTY MANAGER

SENIOR OFFICERS

OFFICERS

Figure 2.13
Structure of taxation department
Source: Company records
 60

2.2 MISSION
Unleashing potential and enabling tomorrow’s entrepreneurs.

VISION
Expand exclusive distributor network in India to over 5000 that is renowned for selling
our premium food products by 2020.

2.3 PRODUCT AND SERVICES

EASTERN GROUP OF COMPANIES

Eastern Group of Companies is a group of companies with diverse interests and a
world leader in Indian spices. Eastern has ventured into various areas like tyre re-treads,
mattresses, garments, packaged foods, mineral water and public school and has many
more projects in its dream. The detailed description of each company is given below;

2.3.1 EASTERN CURRY POWDERS

The company has provided their consumers with consistently high quality
powders and blends. Eastern Condiments operates from two modern factories situated in
the Western Ghats of South India
 Natural Spice Powders
 Eastern turmeric Powders
 61

 Eastern Chilli Powder

 Eastern Coriander powder
 Eastern Black Pepper Powder
 Eastern Curry Powder

2.3.2 SUNIDRA MATTRESSES

Sunidra mattresses Pvt Ltd. was set up in 1999 to manufacture rubberized coir
mattresses with a state of the art factory in Thodupuzha. The popular brand of rubberized
coir mattress manufactured by Sunidra Mattresses Pvt.Ltd.is slowly growing and it is to
be a market leader in the country. Sunidra has own the ISO 9001-2000 certificate.
Sunidra is made of rubberized coir sheets that are produced from 100% natural latex
without any added waste. These rubberized coir sheets are air permeable and have natural
breathing qualities, it does not cause any allergies and also recyclable.

2.3.3 EASTERN AQUA MINERALS

Eastern Aqua Mineral, a recently launched company was set up in the year
2002.Eastern Aqua Mineral entered the area of packaged drinking water with the state of
plant located at Ernakulum district. Eastern packaged drinking water of highest purity
standard, high quality with control, 1286 testing facilities and quality product with
international standards. It is available in convenient sizes. Eastern packed drinking water
is also priced attractively in keeping with Eastern’s view of bringing high quality
products to the common man at the right price.
 62

2.3.4 EASTERN NEWTON PUBLIC SCHOOL

The Eastern group entered the area of education with the getting up of the
Eastern Public School. Mrs.NabeezaMeeran has been the Principal of Eastern Public
School. This school ensures a high quality education from kindergarten to primary
levels with C.B.S.E syllabus providing all the residential facility residing at the heart of
Idukki District.

2.3.5 EASTERN TREADS LTD

Eastern Treads Ltd is a public company engaged in the manufacturing of quality
procured tread, cushion, bonding gum and black vulcanizing cement. Its branches all over
India have been showing consistent high performance and growth. The factory has annual
turnover of 12 crore and it is located at Oonnukal, Kothamangalam. The company has a
processing capacity of 12 tonnes of cold rubber per day with nationwide market network.
This company is in the service industry for re-treading tyres and the service plant is
located at Vazhakulam. The company services by re-treading of used tyres on an average
basis of 1500 tyres per month.

2.3.6 KING RICHARD SHIRTS

King Richard, a brand of men's wear from Eastern Clothing Company was set up
in 1999. This brand was targeted at middle class. King Richard Includes all the trends of
colour combinations and designs of fashion shirts and trousers with a view to meet the
aspiration of working class with a quality ready wear at responsible price in the
international styles. This factory has the production capacity of 15,000 shirts per month.
 63

Top quality fabrics are used in the manufacture of King Richard brand shirts (utilizing
100% of cotton from India and European brands like Bergamo, Brisbane, Italian fabric
etc.).

2.3.7 EASTEA
In recent time the company launched a new product ‘East Tea’ from its product
line. “Taste and Strength in every sip”, Eastea - Premium blended tea, from Eastern has
just entered the market with its signature promise of taste and strength.

CSR OF THE COMPANY

Eastern Condiments Pvt. Ltd, the major food products manufacturer is on the way
of powering the nation’s growth with heart to heart touch of humanity. As a responsible
corporate citizen, Eastern has been addressing the issue of community development in the
neighboring areas of its stations through CSR. The activities are;
 EASTERN NEWTON SCHOOL
The Eastern group entered the area of education with the setting up of the
Eastern Public School at Adimali, Idukki dist; Kerala. Eastern Public School ensures
high quality education from kindergarten to primary levels with C.B.S.E syllabus
providing all the residential facilities and highly trained faculties to the thousands of
families residing the hills of Idukki district Kerala.
 WOMEN EMPOWERMENT
Eastern Condiments gives preference for women as their workers. Around 80% of
workers are women. Most of the women workers are living local in areas
 LOVE PLASTIC
A project to reduce, reuse and recycle plastic wastes. It protects environment and
economy. Plastic bags and bottles are fully recyclable. Educating and encouraging
customers to recycle them is the responsible way to decrease litter and when compared to
alternatives to conserve resources and energy.
 64

 EFFLUENT TREATMENT
Anaerobic and aerobic effluent treatment plants are installed at all major spice and
grinding locations.

AWARDS RECOGNITION AND CERTIFICATIONS

The eastern group has won many prestigious awards for its outstanding
performance by Spices Board India for 17 consecutive years from 1997-98 to 2015-
2016.Recently Eastern group has won the best exporter of spices from spices board of
India. KERALA STATE pollution control board award 3rd prize. EASTERN has won
First prize in energy conservation from the ENERGY COSERVATION BOARD OF
KERALA.
 Mr. M .E. Meeran, former Chairman of Eastern Group was awarded as the “Best
Business Man of the year” by Business Deepika (leading business journal in Kerala)
in 2007-2008. He is also the award winner of “Best Entrepreneur of the year” by
Mangalam Publications.
 The company has also won the FACT MKK NAIR MEMORIAL PRODUCTIVITY
award for the year 1995-1996.
 The company has got ISO 22000 and the HACCP certification in 2007. Eastern is the
first company in India to get ISO 22000 certificate. Certificate issued by Food Cert
BV Netherlands, accredited by RvA the first body in the world for food safety
accreditation.
 Eastern is an ISO 9001 certified company in 2003.
 Company gets NABL accreditation for their lab.
 Spice board approval & export
 Best exporter award of spices board (continuous for 17 years)
 65

PRODUCT PROFILE
In our national economy, spices play a very virtual role and our country India is
considered to be the home of spices. The freshness and the purity of Indian spices and
spice powders have made it a favourite in India and all over the world. Spices are used as
flavouring agents in many countries. They improve the flavour and acceptability of
cooked food and make them more delicious. Eastern Condiments Pvt. Ltd. has varieties
of spices, curry powders and pickles in its product mix. The purity and freshness of
Eastern curry powders has helped to enter the customers mind and the products will
become a leading brand in Kerala.
Eastern curry powders popularly known as ‘Strong Masala‘are processed using
the unique flavour-lock technique. The best quality spices are powdered under stringent
temperature control, using micro pulverisers ensuring that the precious volatile oils that
give the flavour to the spice are preserved. Eastern curry powders are so pure and fresh so
that, use just half as much as any other for excellent taste.
Eastern curry powders export to various countries like Middle East, U.K, U.S.A,
Australia and Germany, Canada. Eastern has grown into a favourite in Indian home
across the world. Excellent quality and right pricing has become the winning formulae of
the Eastern Group. Spices play a very vital role in our national economy.

EASTERN PRODUCTS
Eastern Condiments Pvt. Ltd. has different varieties of spices, curry powders,
blended curry powders-Masala, instant pickle powders and pickles. The company’s
pickle market is mainly concentrated in exporting. The product is follows:
 66

TABLE 2.1: EASTERN PRODUCTS

Eastern Rice
Spice Powders Blended Spice Eastern BASED
Beverages
Powders pickles PRODUCTS
(for breakfast)

Eastern
Adimalikappi
Turmeric Garam Masala Mango Puttupodi
(coffee)
Powders

Eastern Chilly Sambar chukkukappi Idlipodi

Ginger
Power Powders

Eastern coriander Rasam Eastea (tea) Dosapodi

Lemon
powder Powders

Eastern
Eastern Black Kulambu Pathiripodi
Gooseberry packaged
Pepper Powder Masala S
drinking water
Eastern Ginger Pickle powders Appampodi
Mixed veg
Powder
Eastern Kashmiri Chambaputtupodi
Pavbhaji Fish
Chilly
Big jeera powder Channa masala Prawns Payasam mix
Methi powder Tandoori
Garlic
Masala
Green gram Chicken
Tender Mango
Masala
Special powder Chicken fry
Masala
Fish masala

Meat masala
Biriyani masala

Kebab masala
Egg curry
Masala
Chat masala
 67

2.4 FINANCIAL STATEMENT OF EASTERN

The monthly profits of the company are around 20 percentage of turnover and
turnover of the company per month is 20crores. Per month balance sheet is prepared, cash
of purchased materials is given from accounting department. To some extent advanced
payment is also given. If bad debt occurs then sales team talk with corresponding agents
and follow up is made from sales team. Expense budget, capital goods budget, HR budget
etc. are prepared by each department and it is given to finance department.
From one year’s budget, one month budget is prepared.1crore to 2 crores was
spent for advertisement on last year. Through banks salary and bonus is given to
employees. But Bata is providing through cash counter. Pamtec is using by sales
executives for account maintaining. In finance and accounting section there are 14 staffs
in eastern condiments. There is internal auditors and external auditors for eastern.
External auditing is doing by Deolite Company. Here there is income tax inspection also.

2.4.1 SOURCES OF FUND

The main sources of fund from sales, and overdraft (OD). From Federal banks
Adimali branch there is a 3 crore loan for Eastern also having investment for the US firm.

TABLE 2.2 BALANCESHEET FOR THE YEAR 2016

EASTERN CONDIMENTS PRIVATE LIMITED
BALANCE SHEET OF THE YEAR 2016
Schedule As at
No: 31st Mar 2016
I. SOURCES OF FUNDS (Rs.)
(1) Shareholders' Funds
(a) Share Capital 1 96,569,000
 68

(b) Reserves and Surplus 2 2,235,479,265

2,332,048,265
(2) Loan Funds 3
(a) Secured Loans 439,883,750
(b) Unsecured Loans 44,453,800

(3) Deferred Tax Liability

127,338,619
(Net)
2,943,724,434
II. APPLICATION OF
FUNDS
(1) Fixed Assets 4
(a) Gross Block 2,275,160,688
(b) Less : Depreciation 729,431,414
(c) Net Block 1,545,729,274
(d) Capital Work-in-
107,210,225
Progress
1,652,939,499

(2) Investments 5 327,500,638

(3) Current Assets, Loans
6
and Advances
(a) Inventories 1,704,583,083
(b) Sundry Debtors 588,334,782
(c) Cash and Bank Balances 31,193,233
(d) Loans and Advances 286,060,994
2,610,172,093
Less : Current Liabilities
7
and Provisions
(a) Current Liabilities 1,629,999,841
(b) Provisions 16,887,954
 69

1,646,887,795
Net Current Assets 963,284,297

2,943,724,434

TABLE 2.3 PROFIT AND LOSS ACCOUNT FOR THE YEAR 2016

EASTERN CONDIMENTS PRIVATE

LIMITED
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 2016
Schedule As at
No: 31st Mar 2016
(Rs.)
Income
Gross Turnover 8 8,090,666,174
Less Exice Duty 2,253,367
Net Sales 8,088,412,807
Other Income 9 37,574,929
8,125,987,736
Expenditure
(Increase)/Decrease in Finished
10 (114,924,655)
Goods and Work-in-Process
Manufacturing and Other
11 7,611,359,315
Expenses
Interest and Finance Charges (See
90,076,041
Schedule 12 Note No. 3)
Depreciation 4 141,895,960
7,728,406,661
 70

Net Profit 397,581,075

Less
Provision for diminution in value
of Investments
Provision for Doubtful Loan
Loss on Slump Sale of Tea
Division (See Schedule 12, Note
No. 19)

Profit Before Tax 397,581,075

Less: Provision for

– Current Tax 213,501,037

– Deferred Tax -

– Tax relating to Earlier year -

– Fringe Benefit Tax -

213,501,037

Profit After Tax 184,080,038

Add: Surplus brought forward
1,096,570,753
from previous year
Profit Available for
1,280,650,791
Appropriation

Less: Appropriations:
General Reserve 20,586,808
 71

Dividend on Preference Shares

Interim Dividend @ Rs.6.00
(Previous Year Rs.4.50) per 57,941,400
Equity Share of Rs.10/- each
Proposed Dividend
Tax on Dividends 9,847,141
88,375,349

Balance Carried to Schedule 2 1,192,275,442

Sources: Company Records

 72

CHAPTER 3

POSITIONING OF THE
INTERN AND ROLE
 73

3.1 STRUCTURE OF THE OFFICE WHICH INTERN IS ATTACHED

STRUCTURE OF MARKETING DEPARTMENT

GM MARKETING (KERALA SALES)

MANAGER SALES ADMIN

MARKETING STAFF

ASSISTANT

MANAGERS

SALES OFFICER

SALES TEAM

Figure 3.1
Structure of marketing department (Kerala marketing)
Source: Company records
 74

3.2. DUTIES AND RESPONSIBILITIES ASSIGNED

Verification of various schemes like chilli powder, chicken massala, coriander,
Kashmir chilli, etc.. was the first duty assigned to me and then enter the unloading details
to the system in every week, verification of voucher book of different sales routes,
verification of payment with regard to the display at supermarkets and hanging displays,
assist the sales team in route sales both at Kerala and Thamilnadu and then gives the
findings to chairman.

3.2.1. DEPARTMENT ALOTTED AND REPORTING TO WHOM

My department was marketing and reporting to the General Manager of Kerala sales
Mrs. Lovely Baby and to my organization guide Mrs. Alby

3.2.2. BRIEF DISCRIPTION ABOUT THE WHOLE INTERNSHIP

First week duty was to study about the organization, its vision, mission,
departments and a general idea regarding the marketing activity like the various routes,
agencies, depots, and sales officers etc.. Then the next duty was to verify one time
scheme papers of chilli powder and sambar powder. There are 154 routes operated by
company directly and through agencies. The scheme introduced for the purpose
increasing sales. If a customer who purchase specified quantity of products then awarded
the gifts. These will be recorded by the sales executive in a white paper by attaching the
supporting bill for the purchase. As a marketing intern my first duty was to verify these
documents. Almost sixty routes of chilli & sambar powder scheme documents are
verified and submitted to the senior officer who handling the schemes Mrs. Marykunju.
Next duty was to enter the various past dealer benefit scheme credentials to stock register
which is maintained as an evidence for how much gifts distributed route by route.
During the second week the verification of coriander powder s and sambar
powder scheme.
 75

Almost 91 routes checked and submitted the mistake and the entire list to the senior
officer. Last day of the week I have got an opportunity to attend the sales executives
meeting.

Third week verification of Kashmir chilli powder scheme and checking of

vouchers, vouchers are maintained by the sales executive as an evidence for issuing gift
to the customer. It will be submitted at the department during the last working day of the
week by the sales executive. Visited the logistics division, which is a two floor building
which is exclusively for storing final products. The cargos are used to transfer these
goods to depots. Next duty was to check the display payment details. Displays are
classified into two hanging display and supermarket display. Checked the vouchers of
payments and enter these details into the system.

Fourth week activity was to verify last year’s monsoon wonders scheme card.
Then next task was to verify the chicken massala scheme enter the details into the system.
Enter the unloading details to the system. By entering this they can be identified stock
differences. Take part in the weekly meeting.

Fifth week, visited the Theni production plant which is the largest production
plant of Eastern condiments. Got an opportunity to visit the storage house and production
plant, quality lab warehouse, dispatching of items etc.. After spending three days again
come back to Adimali plant and assist in verification of vouchers and enter the unloading
details to system.

Sixth week at Theni production plant, there is no marketing department but they
are carrying sales, this is under the logistic division. Logistic manager assigned me to go
for route sale in Thamilnadu region. Visited Thirunelveli, Kanyakumari, Marthandam,
 76

Thenkassi and Senkottai for sales. Most of the sales activities carried out in
Thamilnadu through agencies, visited these agencies and deliver the products as per their
order.

Seventh week, route sales at Kerala region. Visited Kottayam depots and assisted
the sales activities. Almost fifty shops visited every day. Cash from sales keep the strong
room inside vehicle for first two days. The next day it will be deposited to the companies
account. Learned to operate the palmtec machine, for printing the bills.

Eighth week got an opportunity to visit the entire plant. In Adimali Eastern has
two plants one for the production of different massala powder and other for packaging of
these powders. Visited the seed and chilli division. Learned about the packaging of
products this is purely machine based activities.
 77

CHAPTER 4

DETAILS ABOUT
INTERNSHIP
 78

4.1 WEEKLY ACTIVITY/ PROGRESS REPORT

TABLE 4.1: WEEKLY REPORT WEEK 1
Date from:-8/5/2017 Date to:-12/5/2017
Day & Tasks
Time Tasks completed Observations
Date assigned
Learned about various
Understand the whole
Introduction Eastern ventures like
9 am to Eastern group,
8/05/2017 about Eastern curry powders
5 pm production units,
condiments. ,Eastea, mineral water
Marketing etc.
etc

Almost 154 routes

Introduced Learned about the operated every week
9 am to
9/05/2017 various market details of routes bases by both
5 pm
routes. operated in Kerala. company and
agencies.

Find out several

35 routes of one time
9 am to One time chilly mistakes in the bill
10/05/2017 chilli powder schemes
5 pm scheme learned. copy and reported to
checked and verified.
my immediate head.

Checked 60 routes Errors and mistakes

One time Chilli
and complete the find out in
9 am to and sambar
11/5/2017 verification of one verification. Reported
5 pm powder schemes
time chilli and sambar to the Marketing
verification.
powders. head.
 79

Recording of The recognition for

Enter the credentials
9 am to Dealer benefit the dealers properly
12/05/2017 of 60 routes to the
5 pm schemes to the recorded and
stock register.
stock register. maintained.

Remarks of Industry Guide: good

Note:-Weekly report to be sent every Friday to respective

Faculty guide by mail.
 80

TABLE 4.2: WEEKLY REPORT, WEEK 2

Date from:-15/05/2017 Date to:-20/05/2017
Day & Tasks
Time Tasks completed Observations
Date assigned
Some errors in
One time scheme
recording
15/05/201 9 am to verification of 57 routes verified and
identified and
7 5 pm coriander submitted.
reported to
powder.
immediate head.

Errors in
One time scheme recordings are
16/05/201 9 am to 34 routes checked and
verification of noted and
7 5 pm verified.
Sambar powder. reported to my
head.

Stock register is
one among the
Schemes and
The schemes of 151 important
17/05/201 9 am to benefits are
routes entered into the document filling
7 5 pm recorded to the
stock register. of the same
stock register.
requires more
attention.

Palmtech is the Palmtech contain

name of machine Download the data from the entire sales
9 am to
18/5/2017 which is used for palmtech to systems of information of
5 pm
printing bills by departments. particular route
the sales which is handled
 81

executives. by sales
executive. GPS
also attached to
the palm tech.

Vouchers are
Vouchers of
Completely check the maintained as a
19/05/201 9 am to 5 chilli powder and
given list of vouchers of proof for
7 pm sambar powder
the same. delivering the gift
checked.
to dealers.

The main
The duration of intention of
sales activities conducting
G.M gives a chance to
are finished in weekly meetings
take part of the meeting
20/05/201 9am to 5 every Saturday. is to evaluate the
and collected the various
7 pm There will be a sales and
data from sales
meeting of sales encourage the
executives.
executives in sales executives
every Saturdays. for further
performance.

Remarks of Industry Guide:

Note:-Weekly report to be sent every Friday to respective Faculty

guide by mail.
 82

TABLE4.3 WEEKLY REPORT, WEEK 3

Date from:-22/05/2017 Date to:-26/05/2017
Day & Tasks
Time Tasks completed Observations
Date assigned

22/05/20 One time scheme Completely checked

Some errors are found
17 9 am to verification of the entire list given for
in the list and reported
MOND 5 pm Kashmir chilli verification. (75
for further clarification.
AY powder. routes)

Match the
The one time scheme
vouchers and bill
data of every routes
copies of each
entered and this will be
routes and the
23/05/20 the final data related to
valid data enter
17 9am to 5 40 routes checked and chilli scheme. (
into the system.
TUESD pm entered into the system This gives a clear
Mistakes reported
AY picture on which are the
to the respective
items given for each
sales officer who
routes and the count of
handling the
gifts)
routes

The warehouse situated

Got an in one hectare area and
24/05/2 Understand how
opportunity to its a two floor building
017 9am to finished goods stock
visit the logistics exclusively for keeping
WEDN 5pm are arranged and
of Eastern the finished goods.
ESDAY maintain ed.
condiments. Eastern have eight
depose based on the
 83

requirements these
depose placed orders
and the finished goods
transported in a cargo
from these stores to
depose.

The hanging display

and supermarket
display are the two
categories of display.
25/05/2 The bill copies will be
Completely check the
017 attached with the
9am to Display voucher hanging display
THURS vouchers. If any
5pm checking. vouchers of various
DAY mistake been found it
routes.
should be informed to
the proper sales officer
who has the authority
over the particular
route.

Enter the display

26/05/2 The amount paid for the
details into Completely enter the
017 9am to displaying of items
system and assist details regarding the
FRIDA 5pm required for the annual
in entering the display of items.
Y auditing.
same.
 84

Remarks of Industry Guide:

TABLE 4.4: WEEKLY REPORT, WEEK 4

Date from:-29/5/2017 Date to:-3/5/2017
Day & Tasks
Time Tasks assigned Observations
Date completed
Monsoon wonder
scheme was the
scheme launched by
the Eastern
condiments from 26-
6-2016 to 3-9-2017.
This is the largest
Verification of
Completely verify scheme offered by the
29/5/2017 9AM to monsoon wonders
the six routes with company last year.
MONDAY 5PM scheme of different
its vouchers. Each route will have
routes.
more than fifty shops
for this scheme. From
these dealers the
company identify the
TOP TEN dealers and
give some wondering
gifts.

Matching and Completely Vouchers are the

30/5/2017 9AM to vouchers and write verified and write evidence for issuing
TUESDAY 5PM the voucher the voucher gift to the dealer by
number in the number of six the sales executive.
 85

prescribed routes. These vouchers will

columns. be subjected to
verification. If any
mistakes been found
it should be informed
to the respective sales
officer of that
particular route.

Verified the entire

Some mistakes are
Verified and enter list of chicken
31/5/2017 found in the list.
9AM to the last week massala scheme
WEDNESD Reported to the senior
5PM chicken massala and forwarded to
AY. officer who handling
scheme to system. the senior officer
the schemes.
of the department.

End of every week

the remaining stock
Completely enter
1/6/2017 Entering the of goods will be
9AM to the unloading
THURSDA unloading details unloaded to the depot.
5PM details of 20
Y. to the system. It will help to identify
routes.
the stock differences
in the routes.

The cards contain the

information regarding
Verified the one Checked and total kilo gram and
2/6/2017 9AM to
time scheme with submitted to sales the prize earned.
FRIDAY. 5PM
the cards. officer. Verified it with the
sales officers list in
order to identify any
 86

mistake occurs during

making the list.

Every Saturday is
the end of sales for Voucher is the proof
one week. for giving gift to
3/6/2017 Collected the
9AM to Collection of dealers and unloading
SATURDA materials from
5PM vouchers, details needed for
Y sales executive
unloading details understanding the
etc collected from stock difference.
sales executives.

Remarks of Industry Guide:

Note:-Weekly report to be sent every Friday to respective

Faculty guide by mail.
 87

TABLE 4.5 WEEKLY REPORT, WEEK 5

Date from: -5/6/2017 Date to:-10/6/2017
Day & Tasks Tasks
Time Observations
Date assigned completed
Eastern condiments have
nine production plants all
5/6/2017 Visited Theni Introduced the plant over India. Theni production
9AM TO
MOND production and learned about plant is one among this list.
5PM
AY. plant. departments. Theni production plant is
one of the largest scale
industries in Theni district.

Storage house is situated

outside the production
premises. Here the raw
materials like chilli,
coriander, ginger, turmeric
Visited the etc collected in and stored in
Learned the
6/6/2017 storage house the allocated areas. After
9AM TO activities of storage
TUESD and cleaning chillies transferred
5PM and production
AY. production to the cold storage. Every
plant.
plant. raw material is also cleaned
and stocked the storage
house. Through vehicles it
will be taken to production
plant. In production plant
through various processes
 88

the raw materials become

final products.

Quality lab checks the

quality of products through
various processes. Here it
Visited the mainly checking the level of
quality lab, spiciness is there any bitter
7/6/201
warehouse Learned the taste etc. The powders are
7 9AM TO
and functions of both packed into 25kg and 10 kg
WEDN 5PM
despatching of areas. packets and then transferred
ESDAY.
finished to the warehouse. These
goods. 25kg and 10 kg packets
despatched to Adimali unit
and it packed in the small
packets at Adimali plant.

The vouchers are the

Checked vouchers evidence for issuing gift to
of 115 routes. the dealers. Gifts given by
8/6/201 Checked the
Submitted the list of sales executives of each
7 9AM TO chicken
missing vouchers to route and obtained the name
THURS 5 PM massala
senior officer who & signature of dealer in the
DAY. vouchers.
handling the voucher. If there is any
schemes. missing vouchers the gifts
may not be given to dealers.
 89

9/6/201 Enter the The reaming stock of sale

Unloading details of
7 9AM TO unloading vehicles is maintained for
20 routes entered to
FRIDA 5PM details to identify if there is any stock
the system.
Y. system differences.

These vouchers will be

checked in the coming week
Take part in
and meetings will be headed
the weekly
Collected the by the general manager in
meeting of
vouchers from sales Kerala sales and assistant
10/6/20 sales
executives by sales manager in Kerala
17 9AM TO executives and
recording their region. In weekly meetings
SATUR 5PM collected the
name and routes the sales of every item by
DAY various
and given to the item and route by routes will
vouchers of
officer. be presented by sales
different
officers who handling the
schemes.
sales executives and
evaluated.

Remarks of Industry Guide:

Note:-Weekly report to be sent every Friday to respective

Faculty guide by mail.
 90

TABLE 4.6 WEEKLY REPORT, WEEK 6

Date from: -19/6/2017 Date to:-24/6/2017
Day & Tasks Tasks
Time Observations
Date assigned completed
More than 50 shops visited
these places. Got an
opportunity to take order from
some shop. The sales executive
Kottayam, Adichira, will be responsible for taking
Samkranthi, orders and assistant will be
kanjikuzhi deliver the products based on
19/6/17 Part of sales
9AM to ,Ananthanam, the order. The bill printed using
MOND in Kottayam
5PM Rubber board a machine called palmtec. If
AY route.
puthupally, the shops had any gifts of
Kanjirathumood etc previous scheme it will be
visited for sales given and obtained the
signature of shopkeeper in the
voucher. This will be produced
as evidence for given the gift to
shopkeeper in the office.

Almost 50 shops visited. Assist

Visited Pularikunne,
the sales executive in taking
20/6/17 Chunkkam,
9AM to orders from shops and deliver
TUESD Route sales Varissery,
5PM the products. 600 kg sales will
AY Moolavattam, SH
give lakh rupees. This amount
mount nagabadam
counted and kept in the locker
 91

which is inside the route sale

vehicle.

There are number of shops

inside the Kottayam market.
Visited these shops and deliver
21/6/17
9AM to the products based on the
WEDN Route sale Kottayam market.
5PM orders. The cash in hand will
ESDAY
be banked in every Wednesday.
The entire banking transaction
through Federal Bank.

22/6/17 Visited Here also visited 50-60 shops.

9AM to
THURS Rote sales Madukomood, Done the activities same as
5PM
DAY Nagampadam etc above

23/6/17 Some shops taken their stock

FRIDA 9AM to in Friday. After completing the
Route sales Kottayam market.
Y 5PM sales the amount should be
accounted. And close the sales

Got an opportunity to meet

respected Chairman Navas sir.
24/6/17 He asked the experience of
9AM to Back to Taken part in the
SATUR sales from Kerala and
5PM company meeting
DAY Thamilnadu. Some suggestions
given and he appreciated for
the work done.

Remarks of Industry Guide:

Note:-Weekly report to be sent every Friday to

 92

TABLE 4.7: WEEKLY REPORT, WEEK 7

Date from:-26/6/2017 Date to:-30/6/2017
Day & Date Time Tasks Tasks Observations
assigned completed
26/6/17 9 Got Visite Agro
MONDA A an d the productio
Y M oppor plant n plant
tunity situated
t to at
o visit Adimali.
5 Agro Here, the
P produ productio
M ction n of
plant. Masala
powders
taken
place.
Chicken
masala,
meat
masala,
fish
masala
etc
produced
and
packed
here. The
packagin
g of these
powders
done
through
machines
. After
packagin
g the
product
transfer
 93

into the
main
storage
area.
27/6/17 Visit Visite The
TUESDA the d and productio
Y chilli learn n of chilli
9AM to 5PM packa ed powder
ging the taken
plant opera place at
tion. Theni
productio
n plant.
For the
Kerala
sales
these
powders
packed at
Adimali
plant.
There are
50 gm,
100gm
250 gm
packagin
g
machines
for carry
down this
activity.
28/6/17 9 Visite Learn Seeds
WEDNE A d the ed like
SDAY M seed the cumin
produ opera seed,
t ction tions fennel
o plant of seed etc..
5 seed are
P packa cleaned
M ging at Theni
area. and
packed at
 94

Adimali
plant
9 Verifi Verifi Apart
A ed the ed from
M daily the salary the
29/6/17 Bata detail company
t detail s of giving a
THURSDAY o s of 30 daily
5 Sales route allowanc
P Exec and es for
M utives eight sales
, sales peoples
Assist office for their
ants, rs food and
Drive with accommo
rs and the dation.
Sales supp These
office ortin will be
rs. g examined
docu during
ment the end
s. of every
month.
30/6/17 9 Enter Enter This is
FRIDA A the 60 done for
Y M unloa route the
ding s purpose
t detail unloa of
o s to ding. identifyin
5 the g the
P syste stock
M m differenc
es.

Remarks of Industry Guide:

Note:-Weekly report to be sent every Friday to respective Faculty
guide by mail.
 95

4.2 LEARNING FROM INTERNSHIP

internship for professional careers are similar in some ways but not as rigorous as
apprenticeships for professions, trade and vocational jobs but the lack of standardization
and oversight leaves the term open to broad interpretation. Interns may be college or
university students, high school students or post graduate adults. These positions may be
paid or unpaid are usually temporary. Generally, an internship consists of an exchange of
services for experience between the student and an organization. The students can also
use an internship to determine if they have an interest in a particular career, to create a
network of contacts, to acquire a recommendation letter to add their curriculum vitae, or
to gain school credits. Some inters find permanent, paid employment with the
organizations for which they worked upon completion of the internship. This can be
significant benefit to the employer as experienced interns often need little or no training
when they begin regular employment. It also helps an employer in gauging a student
aptitude, since grade inflation has undermined the reliability of academic grades. Unlike a
trainee program, employment and the completion of an internship is not guaranteed.

4.2.1 OVERALL KNOWLEDGE GAINED FROM INTERNSHIP

The intern did his internship at Eastern condiments Adimali and Theni. He has got
an opportunity for working closely with the marketing department; he also worked on
and created spreadsheets for various reports during this internship. It was also a great
experience because not only was it education and real-world experience, it was an
incredible environment. It was a small department in size (only having eight employees
in the department for carry down various recording and schemes) that has a great team
atmosphere. It was very engaging because the intern was constantly learning something
new.
Was a great experience that allowed me to better understand the professional workplace
and expectations that come with it. The knowledge learned and experienced by the intern
 96

would highly beneficial for him. Eastern condiments and its employees were very
supportive and friendly during his internship.

They were very knowledgeable about the spices market and willing to share that
knowledge with me so intern would get the most out of my time with them. The
internship program is great for students to get experience in the workplace.

The internship is not only beneficial for intern’s knowledge that obtain but also the
networking aspect of meeting real professions in the workplace.
During these two months he had an opportunity to visit the Kerala market and
Thamilnadu market apart to the sales team. This gives me an incredible experience.
Almost 1500 km intern was travelled in Thamilnadu he met the various agencies, and
learned how to behave professionally towards customer. While visiting Theni production
plant, intern found the entire process of transforming the raw materials into finished
goods. He learned how to use Pamtec (machine using for printing the bills).
Communication, team management, corporate relations etc are the various skills that
intern improved through his internship programme.

4.2.2 ANALYSIS OF ACHIEVEMENTS Vs OBJECTIVES

Improved my interpersonal skills
During my internship programme need to communicate with higher officials in the
organization like chairman, H.R manager, General Manger in Kerala sales, Thamilnadu
logistics manager of eastern condiments etc... Under these circumstances I was improved
myself for the proper communication. In two week route sales I communicated with
number of shopkeepers and agents.
Building a net work of contact
Building a network of contacts inside the organization.
 97

Mastering Technical Skill

Gaining working knowledge of spreadsheet based data manipulation, formulas, and basic
modeling techniques.

Learned about the organization and its important departments

Got an idea regarding the important departments and vision, mission, structure of
organization etc..

To work as an intern and to get familiarized in marketing functions of the company

It gives an idea regarding how the company operates there marketing. The company
operates its sales in Kerala directly and through Kerala. Kerala having almost 154 sales
rotes for Eastern condiments. Eight depots at different parts of Kerala like Okkal,
Trivandram, Manjery, Kozhikodu, Kannur, Adimali, Kottayam, and Thrissur. In
Thamilnadu the sales fully operated through agencies, company will deliver the products
based on the requirements of these agencies. There is a meeting will be in every
Saturdays. The sales executives and sales officers will be presented sales figures. The
general manager for sales in Kerala and assistant manager in sales administrate the
meeting. The weekly target for one route is 3800 kg. This costs almost 6.5 lakh. In the
meeting the well performed sales officers get appreciated and recognized by the
company. In order to get improved sales the company launched various schemes for
products in different weeks. Schemes for chilli powder, coriander powder, Sambar
powder, Kashmir chilli and chicken massala. If the customer buy the specified quantity of
products the gifts will given as an encouragement to increase the sales. The various
quantities are 25kg, 50 kg, 75 kg etc.. up to 300 kg.
 98

To understand the working environment of the corporate world

This internship really gives an opportunity to understand the working of corporate world
like how to face competition, the importance of promotional activities, the working
environment etc.
 99

CHAPTER 5

CONCLUSION
 100

CONCLUSION
The study concluded at Eastern Condiments Pvt Ltd which is one of the pioneers in
spices and food related industry and the market leader in variety of packaged curry
powders in south India. . It is found that a cordial relationship is maintained between all
departments for the smooth functioning and achievement of the organizational goal of
maintaining the market leadership and company’s image. Eastern has achieved these
enviable heights mainly due to the hard work and commitment of quality besides
bringing a good product at the right customer.

The company has given an opportunity to the intern for visit the plants of Adimali
and Theni and offices for meeting officers and workers from 8/5/2017 to 30/6/2017. This
above Eight week duration has been helped me to study and find out how an organization
and especially marketing department working. It is nice to remind the harmonious,
friendly, co-operative nature of all peoples who are working in the organization that has
made me more confident.

The study helped me to understand that how the company identifies the right taste
of the consumers and how it become leading brand of spice powders in consumer pack
from India. He was also able to understand some of the opportunities and threats of the
company in the organization study.

Being a student of MBA, the internship at Eastern Condiments Pvt Ltd, has
benefited me with so much of confidence and awareness, so as to be able of myself to
work in a firm. The Internship gave me an opportunity to experience and improves my
practical knowledge about an organization.
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REFERENCES

D, J. (2016). Export of spice items. Mumbai: Spices Board.

Krishnan, R. (2017, may). eastern condiments. Dhanam .

Kumar, S. (2016). Annual growth comparison of eastern condiments. Business Line .

Websites
www.easterngroup.com
www.eastern.in
www.wikipedia.com
www.spicesboardindia.org