1INTERNSHIP TRAINING REPORT AT NIRAPARA(KKR MILLS)KALADY ERNAKULAM Submitted in partial fulfillment for the Award of the Degree of MASTER OF BUSINESS ADMINISTRATION by SEBIN MANI REG NO: 721513631048 NEHRU INSTITUTE OF INFORMATION TECHNOLOGY AND MANAGEMENT (Affiliated to Anna University: Chennai) NEHRU GARDENS, T.M PALAYAM P.O, COIMBATORE-641105 AUGUST 2014 2 BONAFIDE CERTIFICATE Certified that the Internship Report from “NIRAPARA(KKR MILLS)” is the bonafide work of “Mr.Sebin Mani”, carried out under my supervision. SUPERVISOR HEAD OF THE DEPARTMENT Dr.K.RAVIKUMAR Dr. K.RAVI KUMAR Professor &Head Professor & Head Nehru Institute of Information Nehru Institute of Information Technology and Management, Technology and Management Nehru gardens, Nehru gardens, Coimbatore -641 105. Coimbatore – 641 105. Submitted for the Internship Viva-Voce examination held on ___________ Internal Examiner External Examiner 3 DECLARATION I, affirm that the Intership Training report undertaken at “NIRAPARA(KKR MILLS)” being submitted in partial fulfillment for the award of MASTER OF BUSINESS ADMINISTRATION is the original work carried out by me. It has not formed the part of any other project work / Internship report submitted for award of any Degree or Diploma, either in this or any other University. (Siganture of the Student) SEBIN MANI REG NO: 721513631048 4 ACKNOWLEDGEMENT At the start, I would like to express my sincere gratitude to CEO & Secretary Dr. Krishna Kumar. I acknowledge my sincere thanks to Dr. R. Moses Daniel, Principal of NIITM Coimbatore for his encouragement and help in making this project. My sincere thanks also go to the Head of the Department, Dr. K. Ravi Kumar for his prompt helpfulness and guidance. I take this opportunity to express my thanks to all faculties of Master of Business Administration,NIITM Coimbatore for their valuable suggestions and support. I proudly utilize this opportunity to express my thanks and sincere gratitude to my esteemed guide, Mr.Dr.K.Ravikumar,HEAD of MBA, NIITM Coimbatore, without whose guidance and encouragement, it would not have been possible for me to bring out the project work. It is my pleasure to record my sincere thanks to my guide Mrs.bijimol jose (manager) and the staffs of nirapara(kkr millls). 5 TABLE OF CONTENTS CHAPTER NO. TITLE PAGE NO. Executive Summary 06 1 Introduction 07 2 Overview of Industry 10 3 Company Profile 11 4 Organization Chart 14 5 Departments 15 6 Swot Analysis 48 7 Managerial Skill Acquired 50 8 Summary and Conclusion 51 Bibiliography 52 6 EXECUTIVE SUMMARY I had started my internship training from jun 18 th to jul 21 st in KKR Group of companies. KKR Group set up Nirapara in 1976, it had a vision to bring quality food products into each and every home in South India. Now it has grown into one of the most technologically advanced food products manufacturing companies in India. This scientific technique attracting wealth and opportunity comes from the trusted KKR Group, an ISO 9001-2008 certification company with HACCP certification and the leading manufacturers, distributors and exporters of premium food products in the world since 1976.The KKR Group has been synonymous for tradition, culture, trust and quality for the last 33 years. The only factory in South India with Rs 25cr Buhler Machine from Germany and Z-sortex Machine from England for optical inspection, They own the food products that define the “real taste of Kerala”. Company is bound to keep the utmost quality standards for each and every product which it brings out, time to time. The internship period helps me to learn various managerial functions and how to overcome certain problems when there is an issue and how important is maintaining workers-management relations is the key in developing the business. 7 INTRODUCTION Organization is a social unit which is deliberately constructed and reconstruction to seek specific goal. An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common endeavor. Organization study is the systematic study and careful application of knowledge about how people as individuals and as groups act within the organization. The study encompasses the study of organization from multiple view point methods and levels of analysis. The organization study is to get an understanding of the structure and functioning of the organization and also to familiarize with the ways in which basic management concepts and principles practically applied in the organization. The present organization study was conducted at KKR Group of companies, Okkal, Kalady, a place near Angamaly, which has 11 km from Cochin International Airport. The study was conducted for a period of one month. KKR Group of companies very well known for their brand NIRAPARA is one among the trusted names in food industry. KKR mills started by Mr. K. K Karnan more than three decades ago. The company started off with rice manufacturing and they stepped on to spices, curry powders and pickles. The products get exported to more than 43 countries across the globe. The study aims at providing practical knowledge of the application of management theories in the functioning of various departments in the organization. NEEDS AND SIGNIFICANCE OF STUDY Organization is one of the inevitable parts of business & management. For the management students this study has its own importance. It gives practical knowledge regarding the management of business. The study is conducted with a view to get an idea about the organization of various departments and how the administration going on. It helps us to understand different management process and functions. OBJECTIVES OF THE STUDY To familiarize with the business organization. To understand various departmental structure of KKR GROUP. 8 To identify and evaluate the strength, weakness, opportunities, threats faced by the company. To know the duties and responsibility of key personnel. To know about the different types of product offered in the KKR Group of Companies. METHODOLOGY The conducted study is based on two types of data. They are; Primary data Primary data are those which are collected fresh and for the first time and thus happen to be original in a character. This data is collected through Through direct observation of various activities and function Interviewing the departmental heads, employees and workers Secondary data Secondary data are those have already been collected by the firm and which has already been passed through the statistical process. These data are collected from Through annual report and audit report of the KKR GROUP. From related articles and website of KKR GROUP. SCOPE OF STUDY The organizational study was intended to provide industrial exposure to the student and bridge the gap between theory and practice. The study covered the department of KKR Group of Company namely personnel and administration, marketing, finance and accounts, production, purchase, export, vehicle, quality control, and research and development department, was intended for a period of one month from 18 th jun 2014 onwards. The study was mainly conducted to understand the functions, processes and procedures of different departments of the company. This training report covers the details of the departments in which the trainee could get access and interact with responsible executives. 9 LIMITATIONS OF THE STUDY Due confidentially policies of the company, some relevant information could not be received. Company could not reveal its financial statements. Hindrance in collecting information due to the busy scheduling of the personnel. 10 OVERVIEW OF INDUSTRY Rice cultivation is the principal activity and source of income for millions of households around the world, and several countries of Asia and Africa are highly dependent on rice as a source of foreign exchange earnings and government revenue. Rice mill Industry is flourishing day by day, since rice is an unavoidable commodity for our day today life. Kerala is a consumer state. We have to depend on other states in order to get paddy. The rice mil1 industries are mainly concentrated at Kalady. There are around 200 rice mills at Kalady alone. Food processing is seen as an industry with quick returns, whose gestation period is much less than that of other industries. This is also the reason why a large number of NRI investors have shown keen interest in food processing. In the past seven years, since food processing became the „new wave industry‟, many foreign giants have decided to enter this segment of the Indian market. The changing life-style of the people, the increase in urban population, the rise in the literacy level and the enlarged T. V coverage have triggered greater scope for the food processing industry. There is a strong economic justification for setting up food industries, from the viewpoints of farmers and consumers, employment generation and industrialization. It should however be admitted, the food processing industry in India is still in its infancy. Institutional demand, the requirements of hotels, restaurants and household consumption comprise the domestic demand for the processed food industry. The two characteristics governing consumption of processed food in the household sector are the change in food habits and standard of living of the people. As regards the structure of the industry, it is noticed that small and big co-exist in the industry in India. The food processing industry covers the entire range from wheat flour, rice milling, oil extraction, sugar etc., to the latest of the „ready to eat‟ kind of tinned and preserved foods. The products need to be manufactured and marketed appropriately in order to tap the domestic and export potentials of rice, wheal, cereal products, sugar, preservatives, confectionery, dairy products, fruits, vegetables; fish products, meat, poultry, ice creams, tea and coffee. According to the confederation of Indian Food Trade and Industry, the food processing industry is the largest determinant of GNP, accounting for 19 percent of the total industrial production and employing around 18 percent of the national labour force 11 COMPANY PROFILE The KKR (Kuruvanpadathu Karunakaran Rice) Groups was set up in 1976 by Mr. K. K Karnan, a man who set out with the vision to bring quality rice into the traditional homes of Kerala in South India. KKR Group of companies is mainly involved in manufacturing and marketing Rice, rice powders, spices and pickles from 1976 onwards under the brand name of NIRAPARA. A venture which started out with traditional method of boiling, sun drying and milling, grew into one of the most modern rice processing houses in India with the largest world-class technology today. KKR mills boasts of a state- of the art plant with the highest levels of technology in the world, ensuring products that meet the most stringent quality and hygienic standards. The KKR Groups is now all set to become a name to reckon within foods. The Groups has plan to set up a food park with facilities to process and manufacture a wide range of food products like spices, pickles and other products for world markets. The factory of KKR mills is located in the green, pollution-free Okkal Township, near Kochi in Kerala in South India. This facility is equipped with the latest technology in the world for every aspect of processing of paddy-right from destining, cleaning, drying, de-husking, bran-removal, polishing and finally sorting. This infrastructure of around 25 crore of rupees is one of the largest in India. KKR mills are the only rice mill in South India to use the Z- sortex machine capable of optical inspection for quality control. This machine scans every grain of rice and removes discolored, broken and immature rice, ensuring that only rice that meets the specification calibrated in the computer is selected for packaging. The result- beautiful rice of even size, color and bran that is a feast for the eyes and a wholesome meal. The brand Nirapara has now become the symbol of trust, quality and faith in worldwide market. All the product range is widely appreciated for its attribute purity, aroma and taste. The company that started as a small firm which used traditional methods of rice manufacturing grew into a multimillion business by the sheer hard work and long term vision of the founder. 12 KKR Mills Pvt. Ltd is the first rice manufacturing unit to set up, and after few years of full- fledged functioning, KKR Agro mills was set up in a place called Chelamattom, which is nearby Kalady. Later KKR Group stepped on metal work and realty business in partnership basis. But still KKR Groups had known mainly for the food products alone. From food products alone, the company gains revenue of 140 crores per year and own a market share of 40%. VISION MISSION AND VALUE OF THE COMPANY Mission The mission of the company is to deliver high quality food products that set themselves apart from other in taste and value. “Quality food products for modern living” Vision The K. K.R Groups of companies have a great vision of becoming a leader of fast moving consumer goods and products. Its vision is to provide total customer satisfaction through continuous improvement in production process and service. Value of the company High quality products Customer orientation Good relation between management, employees and workers. Quality Standards ISO 22000-2005 certification ISO 9001-2008 certification HACCP OBJECTIVES OF THE COMPANY The objectives of the company includes following: Maintain quality of the products. Profit maximization. 13 Timely delivery of the products. Consistency in sales and services through quality products. Optimum utilization of resources for maximum outcomes. Provide service to society through Janaseva. PRODUCTION UNITS There are production units for manufacturing the NIRAPARA products Production unit Place Product Production per Work Force month(tons) KKR MILLS OKKAL RICE 500 70 SN RICE OKKAL RICE 750 90 MILLS KARTHIKA KANJHOOR RICE 250 60 MILLS KKR FLOUR OKKAL FLOUR 750 280 MILLS KKR CHELAMATTOM RICE 1500 90 AGRO MILL KKR FOOD CHELAMATTOM PICKLES & 150 350 PRODUCTS CURRY POWDERS Table2.1 Production Unit 14 ORGANISATION STRUCTURE Finance officer Production Manager Finance Manager Purchas e Manage r Marketin g Manager Territory Manager HRD Manage r Project Manager Lotus rural developm ent Society Chairman President Vice chairman General Manager Purchase Assistants Store keeper Sales Executive Area Sales Officer Milling Supervisor Paddy instructor Maintenance in charge Dept. Officer Sales Officer Cost Accountan t Cash 15 DEPARTMENTS Introduction The departments are the vital modules in an integrated system called organization. For the case of monitoring and controlling the entire organization and its employees are grouped under different departments. Proper co-ordination and communication among various departments are necessary for the efficient functioning of an organization. KKR Groups of companies includes six different factories which are monitored and controlled by the central office located at Okkal. The functional departments of KKR Groups of companies are: PURCHASE DEPARTMENT PRODUCTION DEPARTMENT MARKETING DEPARTMENT FINANCE DEPARTMENT HUMAN RESOURCE DEPARTMENT RESEARCH AND DEVELOPMENT DEPARTMENT QUALITY CONTROL DEPARTMENT 16 PURCHASE DEPARTMENT PURCHASE MANAGER STORE KEEPERS PURCHASE ASSISTANT HELPERS HELPERS Fig: 4.1 Structure of Purchase dept. The purchase department plays a very important role in an organization because purchasing has its effect on very vital factor concerning the manufacture, quality, cost, efficiency and prompt delivery of goods to customers. Its function is procure material, supplies, services, machines and tools at the most important function of material management as the moment an order is placed for the purchase of material; a substantial part of the company‟s finance is committed which affect cash flow position of the company. The purchase system is centralized in Nirapara. Centralized purchase department means that all the purchase function are routed through one department. This means all purchase should be made by the purchase department to avoid duplication, overlapping and non-uniform procurements. Purchasing is the most important function of material management. As the moment an order is placed for the purchase of material, a substantial part of the company‟s finance is committed which affect cash flow position of the company. Purchase will be: Seasonal purchase- It includes the purchase of paddy, lemon, chilly, turmeric etc. purchase will be mainly from open market and also through agents. Paddy is mainly purchased from Karnataka, Palakkad, Alappey, Tamil Nadu etc. Daily purchase- It includes machines parts, office material and other material for the day to day needs. Responsibilities of the Key Personnel: Purchase manager Check whether there is continuous availability of raw materials. Provide better control on purchasing power. 17 Check the purchase requisition or indenting of raw materials. Select suitable supplier based on terms and conditions. Preparation of purchase order for the supply of stores. Receiving and inspecting raw materials. Checking and passing of bills of payment. Store keeper All manufacturing concerns appoint a person known as the store keeper. Chief store keeper or store superintendent who is in charge of the store department and is responsible for store control. The store keeper should have technical knowledge and wide experience in store routine and ability of the operations of stores. Receiving the stores correctly. Entering all receipts regularly in the bin cards. Keeping every item of stores in its allotted bins. Ensuring that materials are issued only to those who present duly signed requisition note. Ensuring that the stocks do not exceeds the maximum level at any time. Maintaining and supervising the duties of the different members of staff under his charge. Preventing unauthorized persons from entering into store. Maintain store in an orderly and tidy manner so as to facilitate easy handling and physical verification of stores and prevention of loss in storage. Carrying out a regular review of the item of stores. Locating slow moving and non-moving items so that steps may be taken for their disposal before of they become obsolete. 18 Objectives of purchase department To make continuous availability of material so that there may be uninterrupted flow of materials for production. To make purchase competitively and wisely at the most economical prices. To serve as an information center on the materials knowledge relating to prices, source of supply, specific mode of delivery etc. To make the purchase in reasonable quantities to keep investment in materials at minimum. To purchase proper quality of materials to have minimum possible wastage of material and loss in production. To develop good supplier relationship, this will ensure the best terms of supply of materials. Function of purchase department What to purchase? When to purchase? Where to purchase? How to purchase? Paddy is collected from farmers on the basis of money and quality since the production of paddy varies from seasons large amount of paddy should be collected as per the requirements from where it get as cheap and quality since competitors are high purchasing time of paddy seems to be very important. Procedure 1. Receive the purchase requisitions. 2. Exploring the source of supply and choosing the supplier. 3. Preparation and execution of purchase order. 4. Receiving and inspecting material. 5. Checking and passing of bills for payment. 19 1. Purchase requisition The purchase officer does not initiate any action for the purchase of material on his own accord. With the help of the purchase requisition, the purchase officer comes to know the types of material needed in the organization. Purchase requisition is the form used as the formal request to the purchase department to purchase raw materials. This form is prepared by the storekeeper for the regular times. The requisition is approved by an executive, such as the plant superintendent, or work manager. The purchase requisition is generally prepared in triplicate. The original copy is sent to the purchase department. The store keeper keeps the triplicate or the department which initiates the requisition and triplicate is sent to the authorizing executives. 2. Exploring the source of supply and choosing the supplier. Source of supply of raw materials are selected after the receipt of the purchase requisition. The purchase department usually maintains every group of materials, a list of supplier‟s name and address. Quotations are invited from these suppliers by issuing tender to them. While selecting the supplier to whom orders are to be given for the purchase of the material, the purchase department should consider the following aspects: Manufacturing capacities Reliability of supplier Price quoted Terms of payment Financial condition of the supplier Terms of delivery The management of the supplying firm 3. Purchasing order After choosing the supplier, the purchase department prepares a purchase order for supply of stories. The order is the written authorization to the supplier to supply the particular material. It is the evidence of contract between the buyer and the supplier that binds both the buyer and the supplier to the terms, which the order is placed. If five copies are prepared, the possible use may be as follows: 20 The original copy is sent to the supplier One copy is sent to the receiving department One copy is sent to the accounts department One copy is sent to the person who initiated the purchase requisition 4. Receiving and inspecting materials In large concerns, a separate receipts and inspection department independent of stocking location should be set up to receive and inspect raw materials. But in small concerns, the work of receiving the goods may be entrusted to the store keeper. On completion of the inspection, the goods receiving clerks should enter the details of material received in store or goods received notes. Five copies of the note should be prepared. The receiving department will keep one copy and four copies along with the materials will be sent to the store keeper. He will again check the quantity of material and compare it with the quantity given in the note. The store keeper for his record will keep one copy and others will send to the: Purchase department Accounts department 5. Checking and passing of bill for payment When the invoice is received from the supplier, it will sent to the store accounting section to check both the authenticity as well as arithmetical accuracy. Check the quantity and price mentioned in the invoice and the purchase order respectively. The arithmetical accuracy is also checked and verified. 21 PRODUCTION DEPARTMENT COPORATE OFFICE PLANT MANAGER OFFICE ELECTRICAL MECHANICAL BOILER STAFF MAINTENANCE MAINTENANCE OPERATORS DEPT. DEPT. SUPERVISOR SUPERVISOR PRODUCTION MANAGER PADDY MILLING PARBOILING LABOUR INSPECTION SUPERVISOR SUPERVISOR CONTRACTOR SUPERVISOR PACKING & DESPACHING PARBOILING MILLING SUPERVISOR 1 OPERATORS LABOURS OPERATORS LABOURERS PACKING & DESPACHING LABOURERS SUPERVISOR 2 HELPERS PRINTING Fig: 4.2Structure of Production Dept. Purchase department deals with the process of producing a product or services. That means converting input into output. It includes physical commodities used to manufacture the final product. The term production and manufacturing are using interchangeably. COPORATE OFFICE 22 The KKR Group of companies operates their production in three places. 1. Two rice mills and one flour mill is situated at Okkal. 2. One rice mill, curry powder and pickles division at Chelamattom. 3. One rice mill at Kanjhoor. Functions of production department Assure that purchased raw material is conforming to the purchase orders and specification. Establish point of inspection test at selected point in the production process. Evaluate approve manufacturing equipment process and testing. Perform inspection and test data and provide information on process and product quality level. Control the handling, preservation and packing of material and equipment from receipt through shipment of the final product. main rice varities Sl. No. Name of the products 1 Single Matta rice 2 Rose Matta rice 3 Payasam rice 4 Ponni Rice 5 Idly Rice 6 Jyothi Rice 7 Jaya Rice 8 Cherumani Rice 23 DESIGNATION RESPONSIBILITY PLANT MANAGER Monitoring maintenance of plant Administration Coordinating of training HACCP/ISO coordinator Project & expansion work Production planning & achieve targeted production Ensure proper operation & maintenance of PRODUCTION MANAGER all machineries Housekeeping in production area HACCP/ISO coordinator Final inspection of rice Ensure proper bagging in time PACKING AND DESPATCH Ensure proper storage SECTION SUPERVISOR Ensure proper dispatch Keep records Paddy inspection Go down housekeeping PADDY SUPERVISOR Husk, bran empty gunnies loading & unloading inspection Paddy pre cleaning Paddy par boiling Process control PAR BOILING SUPERVISOR Maintaining process sheet Proper drying of paddy Housekeeping of work place PAR BOILING OPERATOR Operating pre cleaning section Operating par boiling section Operating drying section Housekeeping of workplace BOILER OPERATOR Operation of boiler and thermo fluid Preventive maintenance Housekeeping of work place Maintaining of log book MILLING SUPERVISOR Operating of milling unit Process control Breakdown maintenance Maintaining process sheet Housekeeping of work place MECHANIC Plant maintenance Plant expansion work Maintaining records Table 4.1 Responsibility of Production Dept 24 MARKETING DEPARTMENT Fig.4.4 Structure of Marketing Dept Marketing is the process by which companies determine what product or services may be of interest to customers, and the strategy to use in sales, communication and business development. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return . Marketing is used to identify the customer, to keep the customer, and to satisfy the customer. With the customer as the focus of major activities, it can be concluded that marketing management is one of the major components of business management. Chairman Vice Chairman President Co- Coordinator Production anager North Asst. Production Manager South Asst. Production Manager Sales Executive Sales Executive 25 The ultimate purpose of production is the satisfaction of human wants. Production of goods has no meaning unless they are distributed to customer. The goods should be transferred to customer at a time when they need them. Thus marketing department makes goods more useful to the society by getting them where they wanted and by supplying them to those people who want them. The KKR Groups of companies market a number of diversified ranges of products in the competitive market. The marketing department works as a separate company within the business enterprise and deals with all the sales and marketing related activities. The main objective of marketing goods and services is to satisfy the customer and thus to stay profitable. Marketing managers are often responsible for influencing the level, timing and composition of customers demand in a manner that will achieve the company objective. In the business for the convenience of administration, the largest market i.e. the state is divided into three zones namely, south, central and north zones. SOUTH ZONE CENTRAL ZONE NORTH ZONE Idukki Ernakulam Kannur Kottayam Alappey Kasargod Kollam Calicut Pathanamthitta Trissur Trivandrum Malapuram Palakkad Table 4.4 Marketing area 26 Responsibilities of key personnel Sales and marketing managers Give orders and instruction to sales executives Conduct market analysis Give the promotional techniques like advertisement, public relations, direct selling. Solve complaint of customers Prepare detail of shops and quantity of sales. Check whether there is any pending in product supply. Sales and marketing executives Collect order from different shops Fix the driver‟s route for sales Identify complaints of consumers Give information about consumers and shop keepers Inform about market, which has more and less sales Prepare MSSR (monthly stock and sales report) to the manager. Distribution channel During the older days, there have been 1-2 distributors for a district. As time went by in order to cope up with the demand, the company decided to fix a distributor for each Panchayath (2008-09). Margin for distributors were fixed to be 10% of total sales. For pushing the sales, the company has assigned employees in the shops. Separate schemes are allowed for the employees in the shop to enhance extra sales. Distributors and sales executives reports to the manager daily. Sales executives make a report called Monthly Stock and Sales Report (MSSR) and send to the manager. It consists of detail of total sales happened in a month. The varied products are supplied to all the retail outlets all over Kerala. Direct marketing systems is followed to move the products from manufacturer to retailer and then to customers. The company is also having a small outlet for the sales of the products. 27 COMPANY DISTRIBUTORS WHOLESALERS/RETAILERS CONSUMERS Fig: 4.5 Distribution channel The main dealers include the supermarkets, wholesale institutional buyers (the catering people who run the hotel and restaurants), grocery shops, etc. the length of the channel is one level channel which contains one selling intermediaries as retailer. This is used by manufactures for marketing fashion merchandise. It requires knowing the latest trends and taste of consumers. Marketing process Concentration Under this process, products are collected together at a central point to facilitate further action upon them. It is concerned with gathering, collecting and concern rating raw materials, partly finished goods and finished products etc at central points. This concentration to a certain extent embraces various other functions also such as assembling, storage, financing, grading, standardization, risk taking etc. Equalization Equalization consists of adjustment of the supply to the demand on the basis of the time and quality. This sort of adjustment can be done through storage and transportation in market centers. Dispersion It refers to the allotment of raw materials to the producer and the final products to the consumers in lots of small and big sizes suitable for their consumption 28 The Four P’s of Marketing 1. Product 2. Price 3. Place 4. Promotion 1. Product The aim of KKR Group of companies is to produce all food products under the Brand name of NIRAPARA that is needed for a family, so that they do not search for the products of another brand for their needs, so they are aiming at introducing new and needy products into the market. The new product which is to be launched is decided by the chairman and then communicated to the lower level and from there he receives the feedback. As the product might be introduced earlier by the competitor into the market, the company does many researches and conducts many tests to make a product of much better quality and at a fair price so that the product survives in the market. After a product is developed it is given for evaluation proposes to the office staff itself for using at their home and gets their feedback, and if the feedback is positive they are kept for test marketing at their own shops which are situated at Okkal and Kaloor and also free samples in sachets are provided in the shops and after getting relevant feedbacks the product is officially launched for mass distribution. 2. Price Fixing the price for a product is then the main task for an organization. The main factor considering before pricing the product is the cost incurred for production and the demand of the product. Pricing decisions are made on the cost of production which includes the cost of raw materials and incidental charges. Pricing determines success of business, consumers satisfaction and efficient allocation of resources in economy. It is a major element in marketing mix. Price is an element in meeting consumer needs. 29 Pricing Strategy The price of a product is fixed after analyzing the current market situation and also after getting feedback from test marketing. The most important factor which the company takes‟ into consideration is the competitor‟s price. During the introduction of the product the company adopts penetration pricing strategy, the company always keeps the price of their product a bit lower than the price of their competitors and after getting good market, they slowly but steadily increases the price of the product up to the mark of the competitors price. For a new product the pricing strategies that are applied the penetration and competitive pricing where as for a developed product they apply a competitive as well as mark up pricing strategy. The prices of the products which are for export as well as for interstate trade will be a bit higher than the price of the products for local sale as they include transportation cost as well as costs for additional packing materials. 3. Place The KKR group of companies has a large number of distributors in Kerala, major cities in India and abroad, UAE, Muscat, Bahrain, Oman, Qatar, Kuwait, USA, Canada, UK, Switzerland, France, Australia, Singapore, New Zealand etc. Considering the increasing demand they have plans to increase the number of distributors. The communication between the general manager, area sales manager, sales representative and distributors through telephone and internet. The strength of the distribution varies among different products accordingly for example, Nirapara Puttupodi will have higher demand in Kerala but will not have the same demand in the Northern states of India, they would prefer Flour to make chapathi and vice versa. The place of promotion of product is thus selected by taking into account the nature, needs and lifestyle of the consumers, but after all these are food products and will be having nothing less than a moderate demand in every market. The communication between the general manager, area sales manager, sales representative and distributors through telephone and internet. The strength of the distribution varies among different products accordingly for example, Nirapara Puttupodi will have higher demand in Kerala but will not have the same demand in the Northern states of India, they would prefer Flour to make chapathi and vice versa. The place of promotion of product is thus selected by taking into account the nature, needs and lifestyle of the consumers. 30 4. Promotion It is the process of communication about the product to current and potential customers in order to persuade them to buy the product. Promotional activities like advertisement, trade or dealer promotion, increasing rate of commission to the representative etc. are followed by the company; Nirapara gives offers to the dealers, which will also benefit to the customers. Advertisement Advertising is the process through which the consumers are getting information about the product. It persuades the consumers to buy the product. It increases the sales and helps in creating a brand name and consumer loyalty. Advertisement may be informative or competitive and product oriented or company oriented. Informative advertisement gives information about the product, competitive advertisement tries to put down competitors product. Similarly, the product oriented focuses on a particular product alone, whereas the company oriented advertisement focuses on the whole product of the company or the company as whole. The KKR group of companies spent a large amount on advertisement which was conducting every month in a year. The advertisement efforts can be channelized as follows: Wall painting Boarding and board TV/Radio/Newspapers/Magazines etc. The KKR group of companies also advertises their product by conducting, in- shop campaigns which means they select one particular outlet and promote all their products at a special counter allotted for them. They also conduct exhibitions in consumer trade fest. The KKR group of companies has received following awards: Best stall award. General category in all India industrial and agriculture exhibition, Kottayam organized by SNDP Union, Kottayam and SITFO. Best commercial stall award for food festival 2004, 9 th Malabar Mahotsavam, an annual tourism festival of Calicut presented by the district collector and chairman of the organizing committee food festival Malabar Mahotsavam. 31 Market Segmentation In case of consumer goods such as food products, market segmentation is not necessary; all goods are sent to all places and are usable for all age groups so in the view of the marketing department in the company market segmentation is not necessary. Packing Packing of the product plays a vital role in attracting the customers towards a certain product. The color, the shape, the size, the word art, and design on the package etc all helps in attracting customers. Packing materials should be safe and hygiene, so very much care is taken in determining the packing materials. The packs in the company are designed by the marketing manager; different packing materials are used for local, interstate and for export. The packing materials are tried and tested and their quality is assured before using them. The different packing materials are used in the company for packing their products are : jute sacks for rice, plastic packs for flours, curry powders, masalas, spices, glass bottles and plastic packs for pickles, plastic container for oils, plastic sack for packing spices, curry powders etc for interstate trade, paper board packs and plastic belts for packing products for export trade. Target The company decides upon the target of sales that is to be achieved in the current financial year in the annual general meeting conducted in April. Last year the turnover was 140 crore and for the current financial year the target is set to 160 crore. Trade mark Trade mark is the legal term when a brand name or brand mark is registered and legalized, it becomes a trade mark. The trade mark of KKR Group of Company under Nirapara. 32 FINANCE DEPARTMENT CHAIRMAN VICE CHAIRMAN GENERAL MANAGER FINANCE MANAGER COST CASHIER BANK ACCOUNTANT SECTION ACCOUNTANT ASSISTANT CASHIER Fig: 4.6 Structure of Finance Dept Finance is the life blood of every business. Availability of sufficient funds at the required time is the key of success of concern. As a matter of fact finance may be said to be the „circulatory system of economic body‟ making possible coordination between the different activities. The annual turnover of the company rounds to 140 crores. The year of the firm dates from April 1 st to 31 st March. The function of financial management is to make intensive and economic use of capital resources of the organization. Since business firms are profit seeking organization, there functions are to maximize the company‟s wealth. The primary functions are: 1. Profit maximization 2. Maximization of returns 33 Other functions: Obtaining finance Internal audit Cash management Taxation Management of accounting and control Payment collection of all department Preparation of financial report Expense analysis Determining the source of fund Acquisition of funds Funds management Planning of resources Effective use of resources Controlling of resources Banking relationship Responsibility of finance manager Cash arrangement in a schedule wise. Maintain credit for distributors. Immediate draft and cheque are provided as per the requirements. Day to day company expense is maintained. Yearly return, sales return, auditing. ISO auditing will be made in every six months. 34 Responsibilities of cost accountant Ascertain the cost per unit of different product manufactured by a business concern. Provide a correct analysis of cost both by process or operations and by different elements of cost. Ascertain the profitability of each product and advice the management regarding how profit can be maximized. Helps in preparation of budget and implementation of budgetary control. Advice management on future expansion of policies and proposed capital project. Guide management in the formulation and implementation of incentives, bonus plan based on productivity and cost savings. Organize the internal audit system to ensure effective working of different department. Organize the cost reduction program with the help of different department managers. Supply useful data to management for taking various financial decisions. Helps in supervising the working of punched card accounting or data processing through computers. Exercise effective control of stock of materials, work-in-progress, consumable stores and finished goods in order to maximize the capital locked up in these 35 QUALITY CONTROL DEPARTMENT GENERAL MANAGER QUALITY CONTROLLER ASSISTANT Fig 4.7 Structure of Quality Control Dept. Improving quality is one important way to maintain a competitive position in todays markets. Quality can be promoted to customers and employees. Consumers want quality products and services and employees at all levels in the organization like to be associated with a winner. Most people associate high quality with a winning competitive position. When quality is emphasized and subsequently improved, waste is decreased or eliminated. Operational cost is reduced. At the same time, the customer receives products and services, there by stimulating an increase in the firms market share. Nirapara is quality conscious organization, which gives importance to manufacturing of qualitative agro products. The company started its venture with traditional method of boiling, sun drying and milling. But now have grown into one of the most modern rice processing houses in India with the latest world-class technology. KKR Group has the strategy of “good food for good health‟ and „quality food products for modern living‟ The company professionals resort to an extensive range of testing parameters to ensure the supply of pure, natural and nutritive agricultural products. Nirapara also conduct strict quality checks on the following quality parameters that are regularly validated to keep pace with the contemporary trend and custom in the domain. The quality analysts conduct experiments to evaluate quality standard of each product on the following parameters. Edible quality Hygiene Nutritive value 36 KKR mill is only rice mill in South India to use the Z-sortex machine capable of optical inspection for quality control. This machine scans every grain of rice and removes discolored, broken and immature rice, ensuring that only rice that meets the specification calibrated in the computer is selected for packaging. The result is beautiful rice of even size, color and brand that is a feast for the eyes and a wholesome meal. The pickles division of KKR Group is using high sensitive metal detectors before the sealing is done. This also ensures the quality of the products. The KKR Group of company is aware of their commitment to the society. A healthy environment is essential for substantial development. The company‟s procedures are eco-friendly. The quality section is headed by a quality controller. He has assistants to assist him in quality checking. Responsibilities of quality controller Quality checking Supervision of HACCP activities and training ISO coordinator The quality controller gives suggestions regarding quality measure to be undertaken and he is also responsible for monitoring periodic inspection in the company. Certification ISO 22000-2005 certification ISO 9001-2000 certification HACCP certification (Hazard Analysis Critical Control Point ISO 22000:2005) 37 QUALITY PROCEDURE- RICE Storage Rice should be stored in a clean weather proof container. Rice should be stored separately according to their varieties. Rice should be taken for processing before the storage time expires. Loading Always take single variety Mixing should be done only in recommended proportions. Only single variety should be take for boiling at 100%. Pre- cleaning Machine should be cleaned after each shift According to different variety, desired changes in setting should be done in the machine. Paddy Loading Bins Always utilize the full capacity Hot Water Soaking Temperature should be 100 degrees always Do not pump water below this temperature 38 Par Boiling Tank Keep the tank cleaned in every batches Use the tank to maximum capacity Always check the water temperature Do not steam Soaking Always use appropriate paddy soaking time(normally 5 ½ hours) Water Drainage Always drain water away after soaking period Steaming Always steam at the right temperature Discharge to Drier It should be an immediate discharge, do not hold material in the steamer. Milling Ensure the type of paddy in the intake bin Check the moisture level Ensure the proper cleaning of bins takes place during the process change Flow Balancer Always keep the equipment clean Periodic weight calibration should be done Do not alter the settings 39 Mill Cleaning Always clean the spout magnets in shifts Adjust aspiration settings with respect to paddy Take sample from outlets to ensure less product loss and make changes if necessary Clean MTRA series in each shift Check destroyer stone separation outlets with respect of changes in paddy Proper disposal of cleaned by products and impurities from mill should be done. Hulling Hulling efficiency should be checked regularly Leave 5-10% of paddy along with hulled and set roll portion accordingly Clean spout magnets periodically Always run the set capacity of machine Hull Separation Ensure that proper pressure is set Adjust germs outlet properly Paddy Separator Periodic cleaning Change the machine settings in respect to the variety of paddy Takes sample during the operation of the machine and analyze whether change in operation is needed. Thickness Grader It should be cleaned weekly Make sure that immature grain removal is effective 40 Abrasive Whitening Series of passing of rice should be set in due respect to color of rice Efficiency of whitener should be checked twice a shift Grading Ensure proper grading is done, take samples from outlets for analyzing Clean cylinder with air and water and remove bran deposition periodically Polishing Keep machine clean during every shift Red rice should be polished in parallel proportions Efficiency should be checked periodically Operators should be familiar with demands of products and settings Color Sorting Keep the machine cleaned always Analyze the samples periodically Always follow the settings which are prescribed and authorized personnel should only operate the machine. 41 RESEARCH AND DEVELOPMENT DEPARTMENT R & D DEPARTMENT MICRO BIOLOGIST CHEMIST LAB ASSISTANT Fig: 4.8 Structure of Research and Development Dept. In KKR Group of companies research is mainly conducted in the field of production. The department consists of Lab assistant, chemist and microbiologist. It deals with development of a new product and quality inspection etc. the R & D department of KKR Group is situated at the Chelamattom unit. Specific areas Raw material standardization Development of new products Increasing quality of products Development of new products Continuation of new products development Standardization of quality parameters of existing range of product. 42 HUMAN RESOURCE DEPARTMENT HR MANAGER ALL DEPARTMENT ASST. HR MANAGER HEADS HR EXECUTIVES RECEPTIONIST SECURITY, HELPERS& WORKERS Fig: 4.9 Structure of Human Resource Dept. Human resources department is one of the most complex and challenging fields of an organization. It is considered to be the most expensive and important resources of every organization. In simple terms, an organization‟s human resources management strategy should maximize return on investment in the organization‟s human capital and minimize the financial risk. Human resource managers seek to achieve this by aligning the supply of skilled and qualified individuals and the capabilities of the current work force, with the organizations ongoing and future business plans and requirements to maximize return on investment and secure future survival and success. In ensuring such objectives are achieved, the human resource function is to implement an organizations human requirements effectively, taking into account federal, state and local labor laws and regulations; ethical business practices; and net cost, in a manner that maximize, as far as possible, employee motivation, commitment and productivity. 43 The functions of personnel department 1. Pre recruitment process a) Receipt of requirement of manpower from various department heads. b) Scrutinize them and get approval from concerned authorities if the post is new. c) Prepare a recruitment budget and get approval. d) Select the appropriate recruitment process. 2. Recruitment process a) Prepare advertisement etc for the recruitment. b) Scrutinize and shortlist the applications received. c) Sent interview call letters and emails as required. d) Conduct interviews through panels. e) Preparation of offer letters as required. 3. Joining formalities a) Administrating joining formalities. b) Pre employment reference check. c) Preparation of appointment advice and intimating the same to other departments. d) Preparing and entering new hire paper work. 4. Employee database a) Keeping track of Knowledge Management Software. b) Maintenance of Human Resource Information System. 5. ISO Compliance a) Ensuring all the updating of the ISO documentation and HR formats. b) Facing the internal and external audits, accountable to enforce the correctional actions. 6. Statutory Compliance a) Handling PF and ESI formalities and coordinating with other departments. b) Handling Apprentice Training, Submitting Periodic Returns to Board. c) Submitting other returns to the labor department‟s as per Shops and Establishments Act. 44 7. Training and development a) Conducting induction training for new hires. b) Training needs analysis based on skill gap analysis, appraisal feedback and suggestions. c) Coordinating internal and external training programs. d) Maintaining training records. e) Analysis of training feedback. 8. Performance appraisal a) Prepare a new appraisal form. b) Educate employees about self appraisal. c) Prepare appraisal letters. 9. Employee relation a) Having formal and informal counseling with employees. b) Processing required letters on employees request. 10. Report generation a) Generating and analyzing employee attrition reports, training evaluation and manpower status. b) Weekly and monthly recruitment reports. c) Report generation of pre appraisal, appraisal and post appraisal. d) Salary detail reports to accounts department. 11. Exit formalities a) Administrating exit paperwork including all statutory requirements. b) Conducting exit interview c) Prepare exit interview summary d) Giving post employment reference for relieved employees. 12. Remuneration 13. Quality control monitoring One of the peculiarity of Nirapara group is the legal issue are also carried out by the Human Resources Manager. 45 Recruitment and selection Recruitment is mainly done through advertisements in the news paper, reference from employees and also from consultancies. Thus a short list of applicants is made, and the company calls for a general interview. The preliminary interview is conducted by the HR manager and if satisfied, a second round interview is conducted by the chairman and vice chairman of the company. If they are satisfied appointment is made. The HR manager gives the general introduction about the company. During the probation period the performance of the candidate will assessed. If the performance is satisfactory he/she will appointed as the permanent employee. Loading and unloading employees are mainly hired from Orissa and Bihar through Registered Labor Agents. Management – workers relationship The management having a view that the success of the company depends very much on the healthy relationship between the management and staff, the secret of the success of any depends upon that. The management encouragement encourages employee participation in the overall activities of the company. The management of KKR groups has a good relationship with the workers, so there is no trade union in the company. Employee welfare activities Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measure may not be in monetary terms only but in any kind or form. Employee‟s welfare activities in KKR Groups of companies are: Accident insurance Lodging facility Transportation facility Canteen facility 46 Wages and salary administration Salary of the office staff consist of basic pay and HRA, salary increment is made on performance basis. For marketing staff, a certain percentage of the sales turnover is given as commission. The workers are paid according to scale. It consists of basic pay, fixed DA and variable DA. They also provide provident fund, contribution towards bonus and gratuity. The workers are also providing with ESI benefits. Shift system General shift : 9:00 AM to 5:00 PM Production shift : 8:00 AM to 4:00 PM 4:00 PM to 12:00 AM 12:00 AM to 8:00 AM Attendance system Biometric attendance machine for office staff Normal attendance register for workers Promotion The employees are promoted on the basis of performance appraisal, seniority and qualification. Leaves 1. Casual leave 2. Sick leave 3. Earned leave Training and development Training and development is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format. Sales training is conducted once in 3 months for the representatives and executives. Training will be conducted by trainers from the outside Centres. Freshers who are having technical knowledge will be given on the job training. Job rotation is given to workers for developing their skill in different areas. 47 Performance appraisal People differ in their abilities and their aptitudes. There is always some difference between the quantity and quality of the same work on the same job being done by two different people. Performance appraisals of employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. The most common Performance Appraisal method is Rating Method. Appraisal Report is forwarded to the HR manager by each department Head. The employees are given salary increment on the basis of the performance. 48 SWOT ANALYSIS The main aim of doing the SWOT analysis is to find out the efficiency and the effectiveness of the organization. It refers to the strengths, weakness, opportunity and threats. STRENGTHS ISO & HACCP certified company Goodwill of the company High quality products No trade unions Product diversification Employees are efficient and also are dedicated to the company Modern technologies and machines are used for production WEAKNESS Lack of automation Over stocking of raw materials High production cost Not having a proper infrastructure 49 OPPORTUNITY Availability of cheap labour FMCGs are gaining demand in market share Variety areas in instant food production Expansion of company THREATS Tough competition Non-availability of raw materials Extinction of paddy cultivation in Kerala Changing food habits Unfavorable government rules and policies Fluctuation in price of raw materials 50 MANAGERIAL SKILLS ACQIIRED Human or Interpersonal Managerial Skills One of the most important management tasks is to work with people. Without people, there will not be a need for existence of management and managers. How to behave to the workers and the different ways a manager takes for the workability of the employees and the managerial-worksman relationships. How to maintain co-ordination between the employees and the different methods to take a sudden action if any problems accured between the different authorities of the government. These skills will enable managers to become leaders, to motivate employees for better accomplishments, to make more effective use of human potential in the company and so on. Simply, they are the most important skills that I have learned. 51 SUMMARY AND CONCLUSION The brand name NIRAPARA has now become the symbol of trust, quality and faith in the worldwide market. All products are widely appreciated for its attributes purity, aroma and taste. Also the future of the firm lies in tapping the opportunities in the global market. The company is trying its level best to maintain the consistency in quality and services due to stiff competition and high tax evasion in the market. The organization study helped to know the departmental details and its functions. Effective and efficient steps shall be taken to achieve and maintain good reputation to the organization. The activities of plant and all other departments are functioning at the impressive standards for achieving the organizational objectives. The commitment and efficiency of the employee helped NIRAPARA in capturing highly competitive market. Product diversification enables the organization to get a prominent place among the corporate entities. Sales turnover can be enhanced with the help of providing more commission to the retailers and damage allowances, van allowances, credit facility etc. to distributors. 52 BIBLIOGRAPHY Book resources 1. T.N Chhabra , Human Resource Management 7 th Edition 2005 Copyright Dhanpat Rai & Co 2. Published document of the company Web Resources www.nirapara.com www.ehow.com 53 54 55 .