A Report on Corporate Exposure Learning at Kamadhenu Coconut IndustriesSubmitted By Mr. Navaneeth (4NM11MBA87) Under the Guidance of Internal Guide Prof.Sandhya Rao Assistant Professor Justice K. S. Hegde Institute of Management Nitte External Guide Mrs. Subha N Partner Kamadhenu Coconut Industries Kundapura Udupi Submitted in partial fulfilment of MBA course to N.M.A.M. INSTITUTE OF TECHNOLOGY (An autonomous Institute under VTU, Belgaum) Department of Studies in Business Administration (Justice K.S. Hegde Institute of Management) NMAM Institute of Technology, Nitte OCTOBER 2012 CERTIFICATE This is to certify that Mr. Navaneeth is a bonafide student of Master of Business Administration Course of our Institute affiliated to Vishweshwaraya Technological University, Belgaum. This report on, “Corporate Exposure Learning at Kamadhenu Coconut Industries” is prepared by her under the guidance of Prof. Sandhya Rao, Assistant Professor, Justice K.S. Hegde Institute of Management, in partial fulfilment of the requirement for the award of the Degree of Master of Business Administration of Vishweshwaraya Technological University. Place: Nitte Date: Place: Nitte Date: Head of the Department Business Administration Principal „Valued by‟ Sl. NO 1. 2. Name of the Examiner Signature Date CERTIFICATE BY THE GUIDE This is to certify that the CEL Report on “Corporate Exposure Learning at Kamadhenu Coconut Industries” is prepared by Mr. Navaneeth (4NM11MBA87) in partial fulfilment of the requirement for the award of the degree in Master of Business Administration as per Visvesvaraya Technological University under my guidance and supervision. This is also to certify that this CEL report has not been submitted to any other institution or university for procurement of any degree or diploma. Place: Nitte Date: Prof. Sandhya Rao (Internal Guide) Justice K.S. Hegde Institute of Management Nitte DECLARATION I hereby declare that this project report entitled “Corporate Exposure Learning at Kamadhenu Coconut Industries” is the result of my original work under the guidance of Prof. Sandhya Rao, Assistant Professor, Justice K.S. Hegde Institute of Management, Nitte, in partial fulfillment of the requirement for the award of Master of Business Administration (MBA) degree of Vishweshwaraya Technological University. The Project Report has not been submitted before to any other University or institution for the awarding of any degree or diploma. Place: Nitte Date: (Navaneeth) Dr. . assistance and support required in the preparation of the report. Sankaran. I would not have been able to fulfill the task.Hegde Institute of Management whose valuable guidance has enabled me to complete this study. I am always thankful to the Managing director and staff of Kamadhenu Coconut Industries for providing me with necessary information. Justice K. K.Acknowledgement This project bears the imprint of many persons without the help of whom. my sincere thanks to Prof Sandhya Rao.Hegde Institute of Management. First and foremost.S. Nitte for letting me as a part of this prestigious college and for all the help and assistance extended to me during the course of my study in the college. Justice K.S. It’s my pride and privilege to thank Director. Mission and Quality Policy Product and Services Areas of Operation Ownership Pattern Competitors Information Infrastructural Facilities Achievements/Awards Work Flow Model Future Growth and Prospects .Table of Contents CHAPTER 1 TITLE INDUSTRY PROFILE Food Process Industry in India Coconut Industry in India Recent Changes in Coconut Industry Challenges faced by the industry PAGE NO 1-7 1 3 5 7 8-15 9 9 10 10 10 10 10 11 11 12 15 2 COMPANY PROFILE Background Inspection of the company Nature of the Business Vision. 3 7 S MCKINSEY‟S Framework Structure Skill Style Strategy System Staff Shared values 16-22 17 18 19 19 20 21 21 23-26 23 24 25 25 27-32 4 SWOT Analysis Strength Weakness Opportunities Threats 5 Summary of Annul Report and Financial Analysis 6 Learning Experience Annexure Bibliography 33-37 . 5.2 . 5.1 . . 5.4 – Table of Sales and Avg.2 – Table of Sales and Capital invested along with its ratio.1 . Current asset with its ratio.3 . List of Graphs 5.List of Tables 5. 5.Graph of Sales and Fixed asset. Current asset.3 – Graph of Sales and Avg.Table of Sales and Debtor + Bills receivable with its ratio.Graph of Sales and Capital invested. 5.Table of Fixed asset and Sales along with its Fixed asset ratio. In addition to that it helped in getting the required information regarding the company profile. The Indian food market is approximately Rs 2. with no standard publication highlighting the importance of this sector. Despite food production in the country that is expected to double by the year 2020. The objective of this study was to know the market standing of Kamadhenu Coconut Industries in terms of financial position and good will. This study also showed the various problems that the . textile. It is also aimed at studying the response of the company to the suppliers and customers problems. There are many industries which mainly depend on the agriculture for their raw material needs such as sugar. jute. of which value-added food products comprise Rs 80.2 billion). the liquidity position and the financial position of the company are determined. The technique employed for this study was that of primary data collection. There are lot of problems and challenges faced in these industries for making a profitable business. The SWOT and McKinsey’s 7s Frame work model was analysed on the Firm so as to get a better insight into the Firm’s performance and the improvements that can be focused on for higher profit margin.4 billion). In addition to this it is also intended to understand the buyer’s behaviour and their expectations from the Company when it comes to selling of a particular product. The company’s financial data was studied and analysed. rice industry. based on the data .000 crore ($22. coconut industry etc. It also helped in analysing the strengths and opportunities compared to its competitors. not much attention has been given to the growth of this vital industry. All the employees and the company management were consulted in this regard. It is also intended to study the policy of the company along with its strategy in selling of the products. The data collected also gives the problems faced by them and the solutions they found.000 crore ($69. This gathered information about the company helped in analysing the goodwill and the activities conducted by the company regarding CSR.50. In addition to this the areas have been noted where the company can give emphasis due to which there can be a substantial increase in the output as well as the customer interaction. handicraft. It may also help in quick and efficient ordering and delivery process. vegetable oil. and all the required information was collected from them. paper. To understand the rapport of the company with the suppliers and employees.Executive Summary India is a developing country where industries play a very important role in the economic development of the country. It showed the true picture of how difficult it is to start a Firm in the rural area and make it a profitable venture.industry and the Firm in particular is currently facing and may face in the future. . Chapter 1 Industry Profile . thanks to the structural changes in the Indian economy. opening up vast opportunities for value-addition. packaging and exports. has two dimensions – availability of food and access to food. The rise of aggressive regional players making forays into categories where entry barriers are low and a boom in Indian FMCG markets and the rising need for these products are the key reasons for this growth in food business. jute. textile. India is now fervently poised for the Food Revolution that will ensure agricultural diversification and large investments in food processing. The benefits in terms of health. of which valueadded food products comprise Rs 80. with a strikingly high level of technological involvement. not much attention has been given to the growth of this vital industry. with no standard publication highlighting the importance of this Page | 1 .INDUSTRY PROFILE India is a developing country where industries play a very important role in the economic development of the country. aggressive rise of commodity branding and low cost of technology are changing the economics of the Indian food industry. paper. emphasis has changed from subsistence farming to commercialization.4 billion).000 crore ($69. rice industry etc. There are many industries which mainly depend on the agriculture for their raw material needs such as sugar.50. With the country achieving self-sufficiency in grains production. vitality and productivity are obvious.000 crore ($22. handicraft. distribution of food grains continues to be faulty – almost 30% of the food produced in the country is wasted. The entries of multinationals. there is a need to increase the range of foods available to improve overall nutrition. The holistic concept of food security.2 billion). Despite food production in the country that is expected to double by the year 2020. vegetable oil. With the overwhelming successes of the Green and White Revolutions. In such a scenario. Indian agriculture is in the throes of a paradigm shift. the same is not the case with the latter. Moreover. however. Food Processing Industry in India The Indian food market is approximately Rs 2. While the former has been achieved. and cannot be underestimated. it is important to reorient historical agricultural policy framework – from managing shortages to promoting efficiencies and value addition. Despite bumper crops. meat & poultry. flavours and flavour enhancers. nutrient additives. it is essential that agricultural research reoriented to address new challenges. are mentioned below. dairy. there is a wide variation in the level of taxes across states.sector. consequently. Post-Green Revolution. Similarly. stress tolerance. skills and equipment. bakery. obesity. RNA use. frozen food/refrigeration and thermo processing. nutritional research and improved cost-effective vaccine programmes. alcoholic beverages. Special foods are available for every patient today. India has achieved the distinction of being the highest milk producing country in the world. with processes in place to improve quality of marine products for internal and export markets. and molecular biology. Motivated by a desire for maximum indulgence coupled with a wish for Page | 2 . pest and disease resistance. soft drinks and bottled drinking water. confectionery. Moreover. There are 300 million upper-and-middle-class consumers of processed and packaged food in the country. grocery retail. the demand for processed foods and beverages in the country is constantly on the rise. The food industries include food processing. or even weight reduction. diabetes. diet food and nutraceuticals are the latest fad. which often incur multiple taxes at various stages. canning. short maturity. among others. For instance. fats and oils. food ingredients. there is an urgent need to evolve transgenic varieties through the application of biotechnology. The food processing industry is witnessing a 20% annual growth rate and. The issues and events in this sector. packaging. Processed foods are primarily derived from agricultural commodities. which creates a barrier to the free flow of materials from the farm to the factory and ultimately to the consumers. filters and filtering materials. With food production expected to double by 2020. large investments are already going into food and food processing technologies. These varieties should have high yield. As the existing crop seeds have reached yield saturation. This multiple taxation has a cascading effect on prices. fisheries (including aquaculture). and wider adaptability. be it hypertension. With the help of indigenous breeds improvement programme. The market for sugar-free confectionery and snack products is growing steadily. fruits & vegetables. India is the seventh largest producer of fish in the world and is ranked second in inland fish production. The major coconut crop acreage is concentrated on the West Coast region of the country comprising the states of Kerala. Kerala is considered as the land of coconut and holds the key for the development of coconut production and marketing in the country. The coconut oil ranks sixth among the eight major vegetable oils of the world. Moreover. Karnataka and Maharashtra.7% of net crop area of the world. Consequent to the globalization of Indian economy. where coconut oil had to compete with the other low price vegetable oil and fats in the international market. Good packaging will greatly catalyze the development of a food-processing sector. which was equivalent to 7. Coconut Industry in India The coconut crop is grown in 12. India contributes about 15. However. The coconut cultivation areas are also traditionally located in the coastal region of Gujarat. In some cases. Kerala. The crop is grown in the coastal lowlands of continental south Asia and spread along the Indian and Pacific Ocean.5 million hectares of land which constitutes about 0. The coconut crop is grown in eighteen States and three Union Territories covering an area of 1. West Bengal. The cultivation is mostly done by small and marginal farmers. Islands of Andaman & Nicobar and Lakshadweep. About 90% of the area of coconut cultivation and equally the same percentage of production of coconut are from the four southern states.3 metric tonnes of oil. Andhra Pradesh. more than 50% of the price of a product goes towards packaging. the coconut processing industries have to compete with the international market players in the world market. viz. In Page | 3 . followed by East Coast of Tamil Nadu.9 billion nuts were produced. Packaging of food products has become important in order to ensure safety and hygiene and to eliminate the possibility of adulteration. In the present scenario. packaging industry is yet to achieve international standards in the country. According to FAO statistics 2007. but the domestic market is not ready to lift the coconut in product form. Tamil Nadu and Andhra Pradesh. the trend in processing of coconut products is slowly setting in the country. consumers are increasingly choosing sugar-free and sugar-reduced products. about 57. Orissa and Pondicherry.935 million hectares of land.833 million nuts in the country. the domestic coconut market economy has also been pushed towards a situation of competition. Goa.46 % in area and 21% in terms of production of coconut in the world. Karnataka. with a production of 12.calorie control and health benefits. Jammu & Kashmir.spite of the changes in international and domestic market. Milling copra continues to be the major coconut product in Mangalore market. This favourable market behaviour appeared to have been due to culmination of concentrated efforts of the implementing agencies. Nearly 60% of the coconut produced in the state is utilized as raw nuts for domestic culinary purposes. Maharashtra.Punjab. Coconut is the second largest and important horticultural crop of the Karnataka state. about 60% of coconut production in Karnataka is used in domestic items and remaining is dried as copra. etc. 60–70% of the arrival of coconut is sent to other states i.4893 per quintals and the price of ball copra was at Rs. It has been observed that along the busy state highways and national highways like Bangalore – Mysore. where the Karnataka copra is in great demand. and reached to record level of Rs. About 25% of the nuts are converted into edible ball copra. most of the copra arriving to the markets is dispatched to other states. temporary retail sales outlets for tender coconut have been established Page | 4 . Madhya Pradesh. the price of coconut oil has been steadily increasing since 2002. The productivity of coconut in the state is considered as lowest when compared to the other neighbouring states. 2004.7224 per quintal at Kochi market. occupying 31% of the total area under horticultural crop. Karnataka accounts for 15% of area under coconut cultivation and 10% of total production of coconut in the country. while 55-60% is consumed for food and beverage purposes. Maddur market is mainly trading the tender coconuts which are sent to other states for consumption of tender coconut water. Rajasthan. Whereas Arisikere and Tiptur markets cater to the ball copra which is sent to north India.e. developmental policy of the Government to provide minimum support price to copra and coconut oil and the future trade.33 lakh hectares and the annual production of coconut is 1754 million nuts. The total area under coconut in the state is around 3.. Prominently.7500 per quintal in Tiptur market in the month of December. social cultural and religious purposes. The price of milling copra in Alleppy market was also recorded at the premium price of Rs. Uttar Pradesh. etc. desiccated coconut powder and the remaining 15% is utilized as tender coconut for drinking purpose. The coconut utilized for commercial product preparation is only to the extent of 35-40%. The crop is grown in all the districts of the state. as tender coconuts have fairly good demand in most of the cities apart from the demand from the upcountry buyers. The trade in tender coconut in the state is very popular. Bangalore – Pune. remaining units are manufacturing coir products. the coconut processing sector remained confined to these traditional products. Major coconut production in the country primarily is in demand from consuming states for traditional products viz. Recent Changes in Coconut Industry With the advent of modern technology and for faster development of coconut sector in the country. Chitoradnya. oil cake and coir products. The processing determines effective utilization of harvested produce and the quality of the end product. coconut oil and oil cake. Because.at different points to meet the demand of tourist and other travellers. Moreover. In the process of diversification and product development. A large number of cycle hawkers are also involved in the retail selling of tender coconuts. Besides. the processing sector could not make much progress in the direction of diversification and value addition to coconut products. tender coconut water. the market share of coconut oil both in domestic and export market is declining due to tough competition. The coir industry is an important cottage industry in the rural areas of the State. providing gainful employment to many villagers. value addition and by-product utilization have gained Page | 5 . There are 330 units registered with coir board. 30 units make curved ropes and 30 units make yarn. Tender coconuts of Tiptur Tall variety is normally used for this purpose. which ultimately affect the consumption and acceptance of the product. the demand and supply of this single coconut product determines the price of raw coconut. manufacturing coir products in Karnataka which are located in Tuymken. Therefore. to bring new coconut products in the market. Out of these 330 units. Diversification efforts made by coconut oil industries have yielded limited success. coir and coir products only. especially from palm and soybean oil prices. product diversification. Hassan. strategic market research is essential. coconut oil. Mandya. manufacture of desiccated coconut. The most important traditional commercial product traded in the country has been the coconut oil. matured nuts. the coconut processing industry traditionally has been confined to copra production. Nearly 90 percent coconut production is directed for traditional use in domestic markets. Bangalore. desiccated coconut. it has been observed that inspite of commendable achievements made in enhancing the production and productivity of coconut. 50 units are fibre extraction units. Besides. coconut milk. vinegar. Though actual data about these products could not be obtained. To create demand for new products and by-products in domestic market. coconut milk and milk based products. It has been observed that these products have good demand for export too. through the Coconut Development Board made strategic efforts and motivated entrepreneurs industrialist and artisans to exhibit their products in national and international trade fairs and exhibitions. coconut milk. to get better access to up country markets. Page | 6 . Further. spray dried coconut milk powder. which are being subjected to research and development. The Government of India. coconut shell and coconut wood based products. packed tender coconut water. snowball-tender. Other products. Philippines is even producing and exporting cocochemicals viz. handicrafts and utensils certainly have aesthetic utility and value. Some of these products viz.importance. snowball-tender-coconut. coconut water and nata-de-coco which has also gained expanded market in Philippines and Indonesia. Coconut shell and wood based products viz. coir based products. coconut cream. some of the important products which have received consumer acceptance in the country are coconut cream. bio-lubricant and cosmetics. Pre-packed tender coconut water in sachet is produced by number of countries and has gained popularity. coconut based sweets and coconut chutney like traditional convenience products. coconut chips. using indigenous technology were already in the market. the cost of production of the traditional coconut products in the country has been so high that price wise. The marketable value added products includes packed tender coconut water. coconut based dairy products. oleo chemical. more than 50 value added coconut products have been developed in Asian and Pacific countries for domestic as well as export market. These products could be promoted for wider and global acceptance through concerted efforts and aggressive market strategies by APCC countries. coconut water based products. coconut chips. and to ensure their supply throughout the year. In the process of diversification and product development. the Indian coconut products are less competitive in the global market. fatty acids. are organic food. fatty alcohol. bio-diesel.coconut and virgincoconut-oil have been produced on commercial scale. Its contribution to export market has therefore been insignificant except the coir and coir products. desiccated coconut. vinegar. coconut biscuits. accounting for about 45 per cent of total production. As per the survey conducted by Department of Agriculture. Page | 7 . insect infestation. Price instability due to increasing competition from substitute oils especially from palm and soybean both at the domestic and international markets. poor copra making practices and lower oil recovery due to harvesting of immature nuts. Decline in coconut hectarage due to land conversion into commercial and industrial purposes. Kerala is the major coconut producing state.Challenges faced by the industry The following are the major problems faced by Indian coconut industry: Low farm productivity due to mono-cropping practice. Post-harvest losses due to quality deterioration of copra in storage and transport. Kerala Agriculture University and the Central Plantation Crop Research Institute. Relative unremunerativeness of coconut farming being a predominantly monocrop. poor genetic makeup and nutrient deficiency of the soil. the annual loss due to mite infestation in Kerala alone is estimated at Rs 5000 million. Tenurial arrangement as a hindrance to increased investment in coconut culture. etc. C.I. K.S. Koteshwara-576222 Kundapura Tq.COMPANY PROFILE Name : KAMADHENU COCONUT INDUSTRIES : 13th March 1994 Date of Incorporation Founder : Mr.I Bank Page | 8 . Govind Rao Present Managing Director: Mr.C. Karnataka. of Products : One Product : Desiccated Coconut Powder Bankers : K. Nagaraj Rao Location : Haladi Road. Employee Strength Male Female : 35 : 30 No..F. K.C State Bank of India Corporation Bank I. he has taken his wife Mrs. 4 lakhs. This industry is covered over an area of one acre land whose value is estimated to be Rs. This industry has three main departments namely machine department. b) Nature of Business Carried Kamadhenu Coconut Industries looks after the diversification of product along with marketing scope. 5 supervisors. K. Govind Rao to his son Mr. dry food etc. Manorama Madvaraja. 1994.Britannia. This industry has 8 office staff. Page | 9 . Nagaraj Rao.Barrys etc. The company takes the liability for the damages occurred during the transportation. production department and finance department. He then transformed this company to partnership firm. K. ownership of the industry was transferred from Mr. Over the years. the facilities and the infrastructure facilities has been improved in the company and more and more trained and efficient labours are being recruited to better the productivity and efficient managing of the firm. for day to day consumption and for business i. The products produced in the company are used for domestic purpose. Govinda Rao on 13th March. Marketing scope of industry is at outside Karanataka and north India where the availability of raw coconut is very rare. On 10th April 1998. The outside orders are received by phone. Industrial location of Kamadhenu Coconut Industry is opposite to industrial area. 12 machine operators and 42 labours working for the factory.F. It is 1km away from Koteshwara. The main industrial customers are Parle. former MLA. Fax etc. 15 lakhs out of which 75% was provided by K. as loan and rest 25% from land and property. This industrial plant is located in one acre of land. Nagaraj Rao. They share the profit in the ratio of 1:1. K.It was inaugurated by Mrs. Nagaraj manages the firm and he is paid the remuneration as a working partner cum manager for his work. Shubha as a partner of the industry. The strength of labour has increased from 20 to the current strength of 65 over the years.e. Mr. Ravalgon. The local sale is done at the site of the company.Udupi. The initial investment on the plant and machinery was Rs.a) Background and Inception of the Company ‘Kamadhenu Coconut Industry’ is established by Mr.S.C. which is owned by proprietor Mr. These orders are delivered by hired Lorries and through professional courier and DTDC courier etc. for bakery product. for its employees. Swastik Coconut Page | 10 . well receives the remuneration for the same. e) Area of Operation The marketing width is too much in north India when compared to local area . coconut husk and waste copra. f) Ownership Pattern When the company was incorporated. The main marketing places are Mumbai. it was single ownership. Delhi. The orders are received through fax. Rajasthan etc. Nagaraj Rao and Mrs. Sports. The Company aims at improving the living conditions of the employees along with the society it is situated in. his wife.c) Vision Mission and Quality Policy The Company is bound to produce and provide quality products for the utmost satisfaction of its employees and its customers. telephone or mail while the delivery is done on time through the delivery trucks or through courier for small orders. vehicle facility etc. and educational Purposes etc. d) Products/Services Profile The product produced by the company is pure white ‘desiccated coconut powder’. housing facilities. clean and hygienic work place. The Company is wisely using this opportunity for their advantage. K. Most of the by-product is disposed off in the local market. K. The Company has contributed to society and welfare of the people living around it in various forms such as giving funds in the form of sponsorship to various competitions. Nagaraj Rao who is the working partner. The Company has provided clean drinking water. later in 1998 the ownership was split between two people namely Mr. They share the profit in 1:1 ratio and Mr. Shubha. The major competitors are Ganesh Kalpatharu Coconut Industries. They also produce the by-products such as coconut shells. for profit sharing purpose. The company supplies 90% of the desiccated coconut power to north India and 10% to the local market. Games. Gujarat.This is mainly attributed to the fact that the raw materials are abundantly available in local market when compared to north India. g) Competitors Information The firm is facing competition from local coconut industries which produce similar products. Only the desiccated coconut powder has high demand in north India and major MNC’s when compared to the local market. Industries and a firm by Mr. i) Achievements/Awards The Firm has been involved in many CSR activities in a local level for which its managing director has been recognised and awarded by the local authorities. water and power supply facilities. The Firm also has well maintained godown facility for storing the raw materials and finished products. It also provides safety measure and housing facilities for its employees. The firm has a good contact with transport agency for supplying its finished products to its customers and also to get the raw materials from the supply location. As these firms are located close to each other. These firms are located in Kundapura and Udupi Tq. The financial accounts are maintained in computers and the production process are mechanised and modernised for the safe and efficient production. Prabhakar Naik. It provides them with pick up and drop facilities along with rest room in the firm for male and female workers separately. Page | 11 . The second major competitor is Swastik Industry which was established recently and also has the same production capacity as Kamadhenu Industries. h) Infrastructural Facilities Industrial location of Kamadhenu Coconut Industries is opposite to the Koteshwara industrial area. The firm also has separate phone lines and fax lines for receiving the orders through phone and fax. Ganesh Kalpatharu Industry was incorporated in 1982. The other facilities which are provided by the firm are clean drinking water facility. This firm is located on one acre land and has good road. the labour migration from one firm to another has increased over the years which have become a major problem in this part of the region. It is kilometre away from Koteshwara city and NH 66. The working style and the methods of production are similar to that of the Kamadhenu Industry as both had same management practices previously. All the three firms are situated in close proximity and all these firms have the advantage of being near NH 66 which is the main connecting highway for Mumbai and other north Indian places. clean and hygienic work place for its employees. it was the parental company of Kamadhenu Industry before the split took place in 1992. They pose serious threat to the labour turnover in the region and they have the intention of dominating the entire industry in the region. which inturn has helped to the improve the goodwill of the Firm at the same time has brought in feel good factor in the employees. out of which a few stages require the aid of machines and rest has to be done manually. Page | 12 . The major steps in production of desiccated coconut powder are.j) Work Flow Model Raw Coconut Husk Removal Shell Removing Peeling Washing Crushing Drying Shifting Weighing Packing The workflow model of desiccated coconut powder production involves several stages. Washing In this process the peeled coconuts are put into a washing tank after which they are broken over and washed properly with clean water. Here clean water is used and the coconut is broken into small pieces so that the water inside the coconut could be drained off and cleaned properly. coconut husk is removed from the raw coconut manually. In this process. Here experienced labour is needed to avoid any accidents and wastages. The rates of these coconuts are decided on the market rates and some time on the standard rates pre decided. This is done with the help of peeling blades used by skilled workers. Page | 13 . Such cleaned pieces of coconut are sent in for the next round of processing. This process is repeated thrice before it is sent to the next stage. wherein the process of removing the coconut shells without damaging the inner part of the coconut is done manually with the help of small hammers. This process requires experienced workers as there is a chance of cuts and wounds during this and also for the intention of minimising the wastages during this process. Shell Removing This is the second stage of the production process. Then this coconut is transferred to the next process. Peeling In this process shell removed coconuts are sent for peeling off the red thick skin covering it. Such peeled coconuts are sent for the next stage of processing. The collected husk is stored separately for selling and this forms the by product of the manufacturing process. After removing the shell the coconuts are transferred to the next process.Raw Coconut Raw coconut are ordered and procured from the rural areas which are nearby the Plant. Husk Removal It is the first step of the production process. This later is sold off to the coir industries nearby. They are collected at a convenient area such as collection point from where it is transported back to the plant for transformation purpose. These coconuts form the basic ingredient or raw material for the manufacturing of desiccated coconut powder. It is the last step of the production process. This movement through the layers is done with the help of gear arrangement. The crushed powder is put in the top compartment and is passed through the other five layers at an interval of 15 to 20 minutes each.Crushing This is the most important step in the production process. Machines are used for this purpose. so as to remove this. Thus obtained coconut powder is sent for further processing. If the powder is not dried completely then the whole process is repeated till the required level of dryness is obtained. At this stage desiccated coconut powder is packed in 1kg bags after weighing on weighing machine. Page | 14 . This dryer has six compartments arranged horizontally. The mouth of the sack will be stitched by Reva machine. Then the powder is passed on to the next level. Here the drying is done by passing hot air through the chambers at a constant temperature of 90° C. Then the dried powder is sent to the next level for further processing. Thus heated powder is collected in a aluminium tray kept at the bottom. This hot air in the chamber can be provided either by electric heater or by burning firewood at the bottom of the chamber. There may be a chance that some impurities may have been added in the drying process due to the machine impurities or other factors. Then such 25 bags will be packed in a single sack. Drying In this process big dryers are used which dries the powdered coconut obtained from the previous stage. Packing From the shifting process the finished output is got which is ready for packing. The cleaned coconut pieces are put into this grinding machine where they are grinded dry and converted into fine coconut powder. The capacity of each compartment is about 6 buckets of coconut powder. Here the machines are of grinding type. and then the sacks will be kept in the godown for dispatch. Shifting This is a process where the powder is purified manually with the help of filtering machine or shifters. shifting process is used. This will increase job opportunities and would contribute to the growing economy. Page | 15 . This give an edge for this coconut based industries which are health and nutritious in terms of health. This industry not just increases the wealth but also helps the farmers become more agro oriented as it would provide good returns for lesser investment. but considering the fact that there are a lot of R&D work being conducted for mechanisation of the process. the things looks bright. There is a vast undiscovered potential in this industry which could be tapped into and greater profits could be made over the years. They are moving towards more health oriented products rather than taste oriented. This would increase the consumption of desiccated coconut powder in the near future. Consumers would prefer coco based products such as biscuits. Such firms can even go public for raising funds and expand their units where there are abundance of raw materials and labour. This in turn would give a bright growth prospective for the firm and industry as a whole.k) Future Growth and Prospects In recent years consumers are becoming more health conscious and diet based mentality. bakery products etc. Currently the industry is facing an acute shortage of labour. and so on – the model can be used to understand how the organizational elements are interrelated. The model is most often used as a tool to assess and monitor changes in the internal situation of an organization. to include businesses. change of leadership. The model is based on the theory that. So. and authored In Search of Excellence) in the 1980s. new processes. strategy. the model can be used to help identify what needs to be realigned to improve performance. Jr.and Tom Peters (who also developed the MBWA-"Management By Walking Around" motif. Whatever the type of change – restructuring. and teams. these seven elements need to be aligned and mutually reinforcing. skills. or to maintain alignment (and performance) during other types of change. new systems. The 7S are structure. organizational merger.McKinsey‟s 7s Frame Work The McKinsey 7S Framework is a management model developed by well-known business consultants Robert H. style. and so ensure that the wider impact of changes made in one area is taken into consideration. Waterman. OBJECTIVE OF THE MODEL (To analyze how well an organization is positioned to achieve its intended objective Usage Improve the performance of a company Examine the likely effects of future changes within a company Align departments and processes during a merger or acquisition Determine how best to implement a proposed strategy The Seven Interdependent Elements The basic premise of the model is that there are seven internal aspects of an organization that need to be aligned if it is to be successful Hard Elements Strategy Structure Page | 16 . staff and shared values. for an organization to perform well. business units. This was a strategic vision for groups. systems. Shubha wife of Mr. K. Nagaraj Rao is the main and working partner where as Mrs. K. Mr. Systems Soft Elements Shared Values Skills Style Staff McKinsey‟s 7s Frame Work of Kamadhenu Coconut Industies Structure Partners Managing Partner Profit Sharing partner Production Finance General Foreman Chief Accountant Supervisor Secretary Staff Workers Workers The Firm is a partnership Firm where in there are two partners. Nagaraj Rao manages all the Firms’ affairs and is rightly paid Page | 17 . Mr. Nagaraj is the profit sharing as well as inactive partner. The other wing is the General wing which has the employees such as office staff. security personnel etc. For the working class as such there is no educational qualification.Com and for supervisors it’s PUC and above. In future. Here personnel are recruited by manager cum owner Mr. Finance and General wing.the remuneration for the same. The skill training and upgradation is the need of the hour if the Company has to make competitive edge in the market. their working ability. when the firm grows big there has to be separate departments for HR as well. As the Firm is small there is less confusion in the flow of command and is well maintained. Here the training of the personnel recruited takes place on the site. For the accountant post minimum qualification is B. namely Production. There is a strong need for establishing a well defined training unit in the long run when the company grows to a large unit. And also by having a well defined training unit. A minor verification of the qualification and eligibility is done over here and are recruited. Here they learn work by working under experienced workers and later when they retire or get promotion or leave the company. secretary. All are under direct command of the manager and are guided and instructed by manager himself. The production wing has a Foreman under who there are Supervisors who supervise the production process done by workers under them. Nagaraj based on some recommendations from relatives or known people. Page | 18 . Skills Kamadhenu Coconut Industry usually goes for an informal way of recruitment. their willingness and necessity to work. The other wing is the Financial wing which consists of a Chief Accountant who looks after the entire financial statement of the Firm and also the investment decisions or suggestions for the same. Now the HR department is looked after by foreman who acts as the human resource manager of the firm according to the factory law. While recruiting manager keeps in mind the age of the personnel recruited. death etc. Here the salary expected is also taken into account along with minor enquiry of background and health conditions. It’s a unilateral arrangement and has a well defined arrangement for the flow of command. drivers. The vacancy arises only in the case of resignation. This leads to least confusion and better organizational efficiency. these recruits’ take their position. There is no training department as such in the firm. they can produce quality output along with minimal accidents in the Firm. There are three main wings under the Working/Managing partner. But while taking any decision he consults the seniors in the organization along with his relatives and known persons who are close to the firm. the manager enjoys the authority to take any decisions regarding the pricing and investment of the firm. The pricing decisions of the raw materials that is at what price it should be bought and the prices of the finished products that is at what price it must be sold is usually done by the manager in the company meeting which is usually held once a month. a week. As the company structure is lean and is not a public company. Here the firm adopts two types of wage payment namely Time Wage System and Piece Wage System. who are engaged indirectly in the production process are paid wages on a monthly basis according to their part of the work. Labourers working near machines who look after the maintenance of the machines and the supervisors looking over the work done will be paid in this system. Here the command flows from top to bottom and is a vertical downward manner.Style Kamadhenu Industry practices top down approach of decision making. of fortnight or a month. Time Wage System Under this method wages are paid on the basis of time spent on the job irrespective of the amount of work done. There in this meeting the views of all the company senior workers are taken on all the aspects effecting the production and supply of the products and based on this the pricing decision is made. Strategy The main strategy the firm adopts in terms of efficient production and having minimum wastage is by having unique wage payment system. Page | 19 . are taken by supervisors of the firm. Here the authority of decision making lies with the manager cum owner. In Kamadhenu Industries some labourers. In this system the wages are calculated as below Total Wages = Hours of work * Rate per hour. The unit of time may be a day. maintenance of the machines etc. Entire decision is made by the manager and only small decisions pertaining to the day to day operations regarding leave of the labourers. Here when the orders are placed they are given a unique order number which will be in sequence so that the customers can track their orders. All the orders will be executed sequentially and this method of the firm has gained a wide appreciation from its customers. One unit of output is considered as one piece and a specific rate of wage is paid per piece. Ambitious and efficient workers are provided ample opportunity to utilise their talent and increase their earnings. Here the orders are placed either through the mail. Here the wages are paid according to the amount of work done by the personnel. This is also one of the reasons for the customers being long standing with the firm. higher will be his earnings. The orders which are placed by the customers are executed in the order of their receiving.Simple Piece Rate or Straight Piece Rate System Under this method. shell removing and red skin removing process. Some of advantages are Calculation and payment of wages will be simple. telephonic or through face to face meeting. e-mail. Need of less supervisors and hence cost of supervision is low. System The system followed in the firm regarding the supply of the finished products is of First In First Out principle (FIFO). quantity of order. date of order. Greater the number of pieces produced by a worker. It increases the overall efficiency and productivity of the firm. person ordering it along with address. date of delivery needed and its current status. The firm enjoy several advantages due to the adoption of these methods in the wage payment. The packed Page | 20 . The method is just and fair to all without any differences of opinion. It is given as below Earnings = Number of units of product * Rate per unit. Later this order sheet is sent to the production supervisor and based on this the production process is estimated and produced. remuneration is based on the amount of the work done or output of the worker. There is no skip or jump in the order for any reasons or for any consumers. This industry adopts the piece time rate system to the labourers who are engaged in husk removing. Once the orders are confirmed there will be a computer entry made to it as to what is the order number. the following personnel are recruited and given the necessary powers. They don’t have any decision making power as such other than that is required for their assigned task. He takes care of all the decision making and order finalization and pricing decisions in the firm. Workers – They are assigned certain work by the supervisors or directly by the manager. They also supervise the working of the supervisors and other workers in the organisation. Such a systematic process helps the firm to maintain a good rapport with its customers and also help it to estimate the required product and raw material estimates. Manager – He is also the owner of the firm. it can lead to synergy in any organization. Supervisors – They receive the directions from manager and act according to it. They are placed high in production unit and they take all the decisions regarding the production and they are given the authority to take decisions on leave matters of their subordinates. Shared Values Firm is keen on maintaining quality output. Accountants – They look after the financial affairs of the company.and marked sacks of the final products are then dispatched to the respective addresses either through courier for small quantity or through the transport vehicles for large consignment. They also give directions to their subordinate workers working under them on day to day matters. which they have to do with the satisfactory level expected out of them. If they realise their responsibilities and powers properly. They are also given the freedom to take decisions regarding the day to day actions and other maintenance works in the firm. It gives utmost importance to quality of products and Page | 21 . Staff Staff constitute the important part of any organization. Foreman – They are just below the managers in reporting. They also take care of the financial data preparation and also annual audit in the firm. They give the suggestions regarding the financial decisions and investment decisions to the manger. He is unquestioned and is supreme in this firm. Here in this Firm. He enjoys the ultimate power in terms of decision making and enjoying the profits got out of the same. it strives in all ways possible for maintaining good employee and customer rapport. Along with its employee’s satisfaction. sports. the firm is keen in providing contribution to the society as well. educational purposes etc.its customer’s satisfaction. games. For achieving this. it provides required facilities for its employees so that they help in producing the required level of productive efficiency and quality of the product. The following are the facilities provided for employee satisfaction Drinking water facilities Clean and hygienic work place Safety measures to avoid any accidents Housing facilities for the employees who come from far off places There is provident fund facilities for its employees Rest room for male and female workers separately Firm provides pickup and drop facilities for its employees. organised by various NGO’s and local authorities. Page | 22 . The firm has contributed to society and for the welfare of the people living in it by providing funds to sponsoring various competitions. SWOT of Kamadhenu Coconut Industries Strength Kamadhenu Coconut Industries produce good quality of desiccated coconut powder. make greater profits) in the environment Threats: external elements in the environment that could cause trouble for the business or project Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.g. This would allow achievable goals or objectives to be set for the organization. They have given utmost importance for their production process and the quality of Page | 23 . Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths. given the SWOTs. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favourable and unfavourable to achieve that objective. opportunities. Weaknesses/Limitations. and Threats involved in a project or in a business venture. The technique is credited to Albert Humphrey. Strengths: characteristics of the business. If the objective is NOT attainable. First.SWOT ANALYSIS SWOT analysis (alternately SLOT analysis) is a strategic planning method used to evaluate the Strengths. Opportunities. the decision makers have to determine whether the objective is attainable. who led a convention at the Stanford Research Institute (now SRI International) in the 1960s and 1970s using data from Fortune 500 companies. or project team that give it an advantage over others Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others Opportunities: external chances to improve performance (e. Setting the objective should be done after the SWOT analysis has been performed. a different objective must be selected and the process repeated. and threats) in order to maximize the benefits of this evaluation and find their competitive advantage. weaknesses. The Firm also has the advantage of good and stable and unilateral management which makes the Firm more effective and profitable. The Firm doesn’t have a website of its own through which it could have got orders. It is located in not so accessible kind of a place which makes its customers life difficult. The wastage is minimal in the production process as experienced employees are hired and also to the fact that the husk and the shell of the coconuts are used for the drying machines for heating. The available labour is mostly locals which makes the wages cheaper and also the pickup and drop facilities more convenient and cheap. Good water and power facilities to the Firm has made the production process easier and economical. The Firm has the advantage of being near the post office.output got out of it. Page | 24 . The Firm is connected to NH66 with good road facilities. It also has a local bus stop in front of the Firm which makes it easier for transportation of raw and finished products along with labour movement. The efficiency of the firm is good when compared to others. It has also ensured a continuous supply of raw materials even in the case of crisis. They have never compromised on the quality aspect over the years when compared to price. bank. which makes it more cheaper to access. Weakness The scarcity of labour in the region and also the increasing wage rates of experienced labourers decrease the profit margin. More than 85% of the raw materials are gathered from the local area and from the permanent suppliers which have reduced the cost of transportation and the danger of scarcity of commodities. courier drop spots etc. There is no much local market available for the desiccated coconut powder. It can have its own R&D department for the advancement in the production process. It also faces threat from the policy changes from the government. It doesn’t have standard quality control mechanisms. It can go for acquisitions of the nearby weak firms which has adequate labour but no orders for production. which shows the negligence of farmers in this part of the region. They also face a threat of being out dated due to non mechanisation of their firm. This can lead to shortage of raw materials in the coming days. Page | 25 . It can open units where there is abundance of labour and raw materials. It can seek the opportunities in the far northern regions for the desiccated coconut powder. Threats There is stiff competition from the nearby firms which are into production of similar products. It faces a threat of shortage of labour which may be due to the migration of labours from this firm to others on account of better benefits provided there. Opportunity The labour turnover could be reduced by providing some additional facilities and benefits for them. It can install advanced machinery for production purpose. It can go for E-marketing by launching its website and other mailer facilities. It doesn’t have the mechanised process for production of desiccated coconut powder. It lacks training department for the newly recruited personnel. Now a day the farms are being converted into site. Page | 26 . who try to steal the raw materials stored in the godown. They also face shortage of power which is becoming a major problem in this part of the region. They also face threat from the robbers. 318 99.45.03.64.32.01.499.1 Fixed turnover ratio YEAR Sales(Rs) Avg.750 22.19 4. Fixed Fixed Asset turnover ratio Asset(Rs) 2007 2008 2009 2010 2011 97.539843 Page | 27 . Table 5.07.FINANCIAL AND RATIO ANALYSIS Ratio analysis Ratio analysis is a form of analysing the company’s strength in the market by using the various statistical data available from its balance sheet.380088 1.A high ratio indicate a high degree of efficiency in fixed asset utilization and low ratio reflect inefficient use of fixed asset.298585 93.97.846.678.546.90 4.54.350 23. Fixed asset turnover ratio= sales /average fixed Asset.130528 39.64.47 2.08 4. This ratio indicates to what extent the fixed assets of the concern have contributed to sales .12 4. There are various ratios which can be calculated and which tells us about the various performances of the company in various fields.15.650 24.550 22.115501 1.78.42. They are as follows Fixed turnover ratio: This ratio measures the productivity of fixed asset.811. Capital turnover ratio Capital turnover ratio is the ratio between sales and proprietor’s fund.000.000.2 Capital turnover ratio YEAR 2007 2008 2009 2010 2011 Sales(Rs) 97.07.000.49. Capital turnover ratio=sales/proprietor’s funds Table 5.868. it is evident that over the years there has been almost a constant fixed asset turnover ratio.6504653 6.01.03.000 10.1 From the above graph.98 15.000 0 2007 2008 2009 2010 2011 Fixed Asset turnover… Sales(Rs) Sales(Rs) Avg.868. This indicates that the fixed asset has been contributing well for the sales over the years. This is a clear indicator to show that company has a very good long term prospects.49. Fixed Asset(Rs) Fixed Asset turnover ratio Year Graph 5.12.000 8.98 15.45.0355540 6.000. It can be observed that in 2011 it has dipped to 2.49.4170262 Page | 28 .3094042 6. This clearly shows that the firm is having stable sales compared to the fixed assets.78.650 1.49.000 2.5441983 6.868.000.000 4.98 15.98 15.868.350 93.000.49.750 1.42.000 6.54.53 which is due to high investment in fixed assets in this year compared to sales.550 Capital(Rs) 15.98 Ratio 6.318 99.868. 2 It can be seen that over the years the company has maintained a constant capital turnover ratio.000.000.000 10. The liquidity of a firm’s receivable can be examined in two ways: i) debtor/receivable turnover ii) average collection period.000 2. Debtor Turnover Ratio It shows how quickly receivable or debtors are converted into cash. the Company is able to generate six times the revenue over the years.000 0 2007 2008 2009 2010 2011 Sales(Rs) CAPITAL(Rs) Year Graph 5.000. In other words. It is calculated as Debtor turnover = Total Sales/(Debtors + Bills Receivable) The liquidity of the firm is also calculated by the average collection period of debts.000.000 8. It is also evident that the Company is having good liquidity as well in the market. the debtor turnover ratio is a test of the liquidity of the debtors of a firm.000 4. It is calculated as Average collection period = Months in a year/ Debtor turnover Page | 29 .000. This shows that for every rupee invested by the investors.000.12.000 6. The debtor turnover shows the relationship between credit sales and debtors of a firm. 650 5046557.318 99.78 1.01.22 34.03. Current Asset turnover ratio: This ratio measures the productivity of current asset.91 3.42. This is a must for any company as they are non performing asset and they have to be recovered fast so that they can be invested in better ways so that it yields returns.695.4 Current Asset turnover ratio YEAR Sales(Rs) Avg.54. A high ratio indicate a high degree of efficiency in current asset utilization and low ratio reflect inefficient use of current asset.602510 93. Current Asset(Rs) 2007 2008 2009 2010 2011 97.350 93.54.7 0.550 28.78.094.009815 Current Asset turnover ratio 1.969706 5697824.641735 Page | 30 .01.127263 2.38.42.350 6432001.012.414353 3.Table 5. Current asset turnover ratio= sales /average current asset.348185 2. But over the years the firm has improved on this aspect and due to this the liquidity of the firm has also improved.418838 2.66.562.90085 4.449.55 1.31874 8.13864 Average collection period The above table shows that during the initial years the credit sales was more so the liquidity position of the firm was not that good.778588 1.30.318 99.3 Debtor Turnover Ratio YEAR Sales(Rs) Debtor + Bills Debtor Receivable(Rs) turnover ratio 2007 2008 2009 2010 2011 97.1 29.1 37.8 1.64.550 9646540.650 1.07.45.45.750 4596868. This ratio indicate to what extent the current asset of the concern have contributed to sales.03. Table 5.93 69.78.07.750 1.50996 4.09.51457 3.899497 3.16 2. This is a healthy sign for any firm.000. This also Page | 31 .000 Sales(Rs) Avg.000. The best current asset turnover ratio is the one where it is above one. For every rupee invested in the fixed assets.12. In recent times the firm is able to have a low debtor turnover ratio. This shows that the company is able to invest in long term assets and it’s at a high range when compared to the normal investment portfolio. This means that the receivable are being recovered faster in recent years than in the past. But still it is not able to meet its past performance. Inference from the Financial Analysis The fixed asset turnover ratio was good over the initial years.000 8.000.000.000 6. It means that for every rupee invested the firm is getting a high returns and this also shows that the firm is having a very healthy financial position.000 2.000 0 2007 2008 2009 2010 2011 Year Graph 5. But in recent years the current asset turnover ratio has dipped to a greater extent. Capital turnover ratio is high in the range of 6 rupee.000. 4 rupee was the returns. Current Asset(Rs) 4. This means in the recent years the current assets are more than in the past years. In recent years it has been constant and the Firm has tried to better utilise the current assets for improving the sales of the Firm.000 10.3 The above table shows that.000. in the initial years the current asset turnover ratio was healthy and was above 2. Every firm is expected to produce a high capital turnover ratio. In recent years. Page | 32 .shows the good liquidity position of the Firm and also the healthy financial position of the firm. From the above ratio analysis it is evident that the Firm is having a good liquidity position and financial position and profitability of the firm is good. the current assets have increased when compared to the past. This shows that the current asset is being depleted in the Firm. This is evident from the current asset turnover ratio. In the past it was good but in the recent years it has dipped to a greater extent. There has been frequent fluctuation in the raw material prices which will in turn affect the prices of the finished products to a greater extent and will effect the profitability of the Firm. it is necessary to get practical training as a part of fulfilment of master’s degree in business management. To know the application of human resource and marketing in production. we are suppose to expose ourselves to working environment of any organization and study the application of management aspect in such organisation. There has been year on year growth in the Firm even though there were several problems faced by the Firm over the years. To make suggestion and recommendation to interested persons for the improvement of their activities. To create curiosity among people to know what is unknown. The problems of the Firm over the years have been positively addressed and have been solved to a greater extent. They have a well maintained client base and have maintained good rapport with their clients over the years. This has affected the quality of finished products to a greater extent over the years. still it is facing problems such as In recent times there has been a dip in the quantity and quality of the raw materials that are being supplied to the Firm. The employees in the Firm are dedicated and are professionally oriented towards their work. Hence the objectives of the study are As my academic requirement. Though the Company is well equipped with better infrastructure and operations. It is managed by an able administrator and the employees of this Firm have reacted positively for all the decisions taken by the administrators of the Firm. This is attributed mainly to the increased competition in the region and also the fact that several farmers are migrating from the cultivation of coconut to better and economical agro products. To know the management practices that is applied and practices in the organisation. Over all Kamadhenu Coconut Industries is a well maintained and managed firm in terms of operation and production process. Page | 33 . To get practical knowledge about the working of a manufacturing enterprise. They have even good transport facilities along with good machinery and electronic equipment. The Firm has a good marketing and supply unit.LEARNING EXPERIENCE AT KAMADHENU COCONUT INDUSTRIES As a part of curriculum activity of MBA course. So the extent of information provided in the industries is very less to go in detail. The major problem in the coastal region is of power. SUGGESTIONS Although the firm is a well maintained one. there is lot of scope for improvement in terms of technology and process involved in production. And also the fact that having a standby machine is expensive in terms of production cost makes the condition even worse. This Firm is frequently facing problem of labour absenteeism and labour iteration. Although the generators are being installed in most of these industries. The machines used in this Firm are very old and modern machines have not yet been installed. There is also an unfavourable market conditions and also the transportation cost over the years has increased to a greater extent which has brought down the profitability of the Firm considerably. One of the major problems faced by this Firm is that of labour. The Firm is also facing the problems of frequent breakdown of machinery due to continuous production. The Firm is also facing problem of being outdated in terms of machinery and technology used in the firm. The Owner was not willing to provide the exact information about the product like the exact profit they get from it. There were also a lot of financial data which the owner was reluctant to share with. By implementing these suggestions. Limitations The project was to be done in the limited period of time. it is not economical to use them for production as the cost of diesel is too high when compared to the price of the finished products. There has been acute shortage of power in this region which has affected the productivity of the industries to a greater extent. This has lead to discouragement of the young and energetic employees in the Firm. There has been a decrease in the sales over the years due to the stiff competition provided by the competitive firms. The Firm is also facing the problem of shortage of working capital. The salary/wages is increased on the basis of experience and not on the basis of efficiency. the Firm Page | 34 . This is also one of the reasons for high employee turnover. Some of the important suggestions are Modernisation of technology and machinery is the need of the hour. Try to improve the rapport with its clients and customers. The Firm should take proper precautions for the maintenance of the machines and should try to replace the old machines which consume huge capital for their repair. The Firm must also launch its own website so that it can take orders online and also give information about the Company through electronic media. There are many employees who come from far off places and work in the Firm. The Firm must provide canteen facilities to its employees. It must try to widen the local market for its products. the various uses and nutritious values and advantages of desiccated coconut powder in local newspapers and other media. the productivity as well as the profitability of the Firm can be increased. the Firm must try to attract more clients and at the same time. The annual repair charges of the machines are becoming more and more burden on the balance sheet. The manager may also go for adding some new partners so that they can finance the Firm for its expansion and also to meet its working capital deficit. it must try to retain the existing client by giving better quality services and some additional benefits for their buy. so that it can effectively compete with its rivals. Page | 35 . The Firm should also try and install new and automated quality control mechanism so that it can have a consistent quality of its output at a lesser cost. For their convenience. the Firm must provide quality canteen facility to its employees which would take care of their food needs. the Firm must adopt suitable advertising strategies. For this it must advertise. For better competition in the market. As there is a huge competition in the market. By replacing the old and outdated machines and process with new machines. so that it can highlight it when it is being represented in some national level conferences.can hope to achieve new heights and better profitability. It must go for E-marketing and intensive marketing strategies for gaining an advantage over its rivals. The Firm must also give additional benefits to its employees so that it can reduce the labour turnover. The Firm should go for some quality check certifications. but also will improve the profitability of the Firm to a greater extent. K. For the same reason the Firm and its management gives utmost importance to the employees and their fulfilment of needs. games and other educational activities. There is also a need for the Firm to get represented itself in some national and international conferences. It is also contributing in a large way for the well being of the people in that region by providing them employment and other monetary benefits in the form of donations to the sports. There many improvements that can be brought about in the Firm in all aspects. Better and clear policy must be formulated in terms of wages and other matters when the Firm thinks of expansion. K. There is a wide scope for expansion of this Unit if Page | 36 . The Firm believes that good quality product can be produced only when there are satisfied employees working for them. Govinda Rao. 75% of the production purpose is done manually and rest 25% is mechanised. In Kamadhenu Industries. CONCLUSION Ever since the incorporation of M/S Kamadhenu Coconut Industries by late Mr. Govinda Rao has sincerely tried to maintain the same service to his clients and customers. About 90% of the Firm’s products are supplied to the north Indian regions and only 10% get sold in the local market. This shows that the Firm provides a wide opportunity for providing employment to the local population. Currently Mr. North Indian regions provide the major market for the Firm’s products. Implementation will not only improve the quality of products. There is a need for establishing R&D unit along with the training unit to research and train the new joiners. This can also be for the fact that the availability of coconut and coconut products are in scarce in those regions. so that the Firm gets highlighted and it can expand its operation. There is also a need for more standardisation of wage system in the Firm so that labour turnover could be reduced. This clearly shows that desiccated coconut product has a high demand in the north Indian regions. the Firm has strived for providing excelling quality products to its clients and customers. Nagaraj Rao who has taken over from Mr. Page | 37 .they could counter attack the problems such as labour and capital. This industry as a whole will have a better growth opportunity in the coming days.