KERALA SOLVENT EXTRACTIONS LIMITED

An Organisation Study Report submitted in partial fulfilment of the requirements for the MBA (Full time) Degree of the Anna University, Chennai

Submitted by Dinoop Devaraj Reg No: 722711631025 Batch 2011-2013

Sree Narayana Guru Institute of Management Studies

(Anna University, Chennai) Palakkad Main Road, K.G. Chavadi Coimbatore - 641105 July 2012

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DECLARATION

I hereby declare that the organizational study report on KERALA SOLVENT EXTRACTIONS LIMITED, IRINJALAKUDA is a bona-fide record of work done by me, in partial fulfillment of the requirements for the award of the degree of Master of Business Administration under the supervision of Mr.M.D Johny, Personal Manager, KSE LTD and Asst.Prof Ms. Devi Premnath, Sree Narayana Guru Institute of Management Studies, and that no part of this report has formed the basis for award of any Degree, Diploma, Fellowship or other similar title or recognition in any other institution.

Place Date

Dinoop Devaraj

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ACKNOWLEDGEMENT

I would like to take this opportunity to express my profound gratitude to all the people who have helped me with sound advice and able guidance throughout the completion of my organizational study report. First and foremost I express my thanks and gratitude to the god for successful completion of my organizational report. I would like to record my obligation to my project guide Asst.Prof. Ms. Devi Premnath, whose immense support, valuable suggestions, guidance, encouragement and resourceful help for this organizational study. I would like to specially thank Mr. M.D Johny, Personal Manager KSE Ltd., for his whole hearted support and cooperation. My sincere thanks to all the directors and staff of KSE Ltd, Irinjalakuda for permitting me to do the project work in their company and for their kind cooperation. I would also like to thank teaching and Non-teaching Staffs for their support which enabled me to complete this organizational study report successfully.

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TABLE OF CONTENTS CHAPTERS TOPICS Pg.NO

1.

INTRODUCTION INTRODUCTION TO THE STUDY OBJECTIVES OF THE STUDY SCOPE OF THE STUDY LIMITATIONS OF THE STUDY

1 2-3 3 4 4

2,

INDUSTRY PROFILE

6-7

3.

COMPANY PROFILE INTRODUCTION TO KSE LTD. VISION AND MISSION STARTING OBJECTIVE PROMOTERS

8 9-13 13-14 14-15 15

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ORGANISATION STRUCTURE

16

AN EXCEPTIONAL RANGE OF PRODUCTS

18

COMPETITORS

20

4.

FUNCTIONAL DEPARTMENTS PERSONNEL DEPARTMENT

22 23-30

FINANCE DEPARTMENT PRODUCTION DEPARTMENT PURCHASE DEPARTMENT MARKETING & SALES DEPARTMENT QUALITY CONTROL DEPARTMENT STORES DEPARTMENT

31-36 37-41 42-44 45-52 53-55 56-58

5. 6. 7.

SWOT ANALYSIS CONCLUSION BIBILOGRAPHY

59-62 64 65

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LIST OF FIGURES/GRAPHS/CHARTS S.NO: 1. 2. 3. 4. 5. 6. 7. 8. 9. CONTENTS ORGANISATION STRUCTURE GENERAL MANAGER PERSONNEL DEPARTMENT STRUCTURE FINANCE DEPARTMENT STRUCTURE PRODUCTION DEPARTMENT STRUCTURE PURCHASE DEPARTMENT STRUCTURE MARKETING & SALES DEPARTMENT STRUCTURE QUALITY CONTROL STRUCTURE STORES DEPARTMENT Pg.NO 16 17 24 32 38 43 46 54 57

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1. INTRODUCTION
INTRODUCTION TO THE STUDY
Organization is viewed as a group of persons for achieving its goals. The study about organization is termed as organization study. Organization affects the quality of human life in modern society. The study of organization is thus very essential for understanding the behavior of human being. Organization can be studied in two perspectives that are micro and macro. In micro perspective, the focus of study is on individuals. It concerns itself with each individuals psychological makeup, his interaction with other individuals and groups. The micro view of individuals in organization is recognized as a discipline called organizational behaviour. The macro view considers organization as the unit of analysis in place of an individual. It is concerned with organization as the unit of analysis in place of an individual. It is concerned with organizational goals, organizational structure, technologies used in organization and how organization interact with the environment. The macro perspective is recognized as a discipline called organizational theory. Both these aspects taken together to present a complete picture of organizational study. The organization study is a relevant part of our MBA program; this would enable to meet and attain a practical and real time feed of various aspects concern and to relate it to be concept and theory studies in the classroom. This exercise would help the future managers to meet the challenges lying ahead. All organizations are required to handle multiple problems and procedures. The intention of an organization is to overcome these hurdles. Different techniques are being employed by every organization to accomplish a favourable organization climate. It is the study of the culture and sub culture in all dimensions. The study is conducted to know the functions of the organizations. It is conducted in KSE LTD, IRINJALAKUDA.

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OBJECTIVES OF THE STUDY

* To get an idea about the organization * To familiarize with different management activities * To get an idea about the authority structure and effectiveness of the company * To analyse the strengths, weakness, opportunities and threats of the company. * To study the functional aspects of the department of KSE LTD.

SOURCE DATA
There are mainly two types of data are used for this study are: 1. Primary Data * Observation * Unstructured Interviews

2. Secondary Data Secondary Data are those data which are already collected by someone else. They are collected from journals, existing records, and files report of the company.

SCOPE OF THE STUDY

Scope of the study is immense as it is named at covering the entire operation of plant and workers department in the organization. The study gives an insight in to the day to day operation and management of the organization.

LIMITATION OF THE STUDY

1. The researcher could not see all the employees personally and hence the research could no collect the opinion of all the employees. 2. The top management was reluctant to disclose matters related to the internal affairs of the company
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2. INDUSTRY PROFILE
Cattle play a vital role in the economy of India. Cow and bullocks are regarded as the foundation of agriculture in India. Cattle feed supplies the motive power for almost all agriculture operations such as ploughing, lighting water from wells and the transport of produced to the market. They provide most of the manure used by the farmers in India and often enable them to earn some this during this spare time by carting for hire; they again yield valuable product such as milk, butter and ghee. The unawareness of farmers about the proper feeding methods of cows affects the milk productivity cows in rural areas. Due to this reason the importance of cattle feed industry has been increased in India. Indian livestock feed industry, though quite old, is still in a very primitive stage, as it is supplying only about 5 % for cattle feed, and 30% for poultry feed in India. The bulk of the feed is being produced by un-organized sector compressed of home and custom mixers. Our human population is ever growing and more people are likely to consume more animal product as the economy and income of the people grow. This expands the market for animal products and therefore compound feed also. India is deficient in green fodder. The increasing allocation of arable land and other natural resources for growing food grains, cereals, and oil seeds for human consumption and cash crop for exports, the problem of shortage of green for animal feeding is bound to increase. This opens up prospects for compound livestock industry. Feed industry come into existence in India in 1961 with establishment of feed plant in Ludhiana, India. The animal feed industry has developed since the beginning of 20th century, initially supplying feedstuffs only for ruminants and later, as demand developed, also for pigs and poultry. In the past feed mills were usually built at major ports or close to inland water ways. Many of the raw materials were imported, including serials such as wheat, barley and maize, and proteins from groundnuts, linseed, cottonseeds and fishmeal. Some home produced materials were also used generally by products of the food industry. These included wheat feed, left over from flour manufacture; oilseed cakes and meal, from the manufacture of margarine and cooking oils. It can be seen as the compound feed production for cattle increased between 1974 and 1983. This increase was influenced by the financial incentives for dairy farmers to produce as much milk as possible, there by requiring large volume offered for their cattle. The quality standards of Indian feeds are high are high and up to international levels. The industrys production is about 3.0 million tones, which represents only 5 % of total potentials, and feed exports are not very high. The feed industry has modern computerized plants and latest equipments for analytical procedure and least cost ration formulation, and its employs the latest manufacturing technology. In India the most research work on animal feed

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is practical and focuses on the use of by products the upgrading of ingredients and the enhancing of productivity Feed manufacturing on commercial and scientific basis started around1965 with the setting up of medium- sized feed plants in northern and western India. Feed was produced mainly to cater to the need of dairy cattle. India is currently self sufficient in live stock feed and does not depend on imports. Instead, the country exports large quantities of solvent extracted metals, which are a major source of foreign exchange earnings. BIS has produced guideline feed standards and the industry also has its own guidelines. Currently there is no compulsion to use BIS standards, but the central government has been advising states to introduce their own regulatory standards.

GROWTH OF ANIMAL FEEDS INDUSTRY

The manufacturing of feed in the organized sector in India began around the mid- sixties with the setting up of medium- sized feed plants in the northern and western parts of the country. The early seventies established sixty feed factories in the country and their number increased manifold to over 400 by the late nineties. The pace of increase was much faster in 70s (compound annual growth rate12.7%) as compared to the subsequent decades. The industrial deli censing in 1991as part of the economic reform package in India did not impact on the expansion of feed industry. The 6.3% rate of expansion in pre deli censing period (1976/77 1990/91) remained much the same at 6.88% during the post de-licensing had on the food processing industry in general and dairy industry in particular where large number of new factories/plants came up after 1991 -1992.

FEEDING PRACTICES AND THE USE OF COMPONENT FEED

In India the term Compound Feed refers to feed that is nutritionally balanced and has been manufactured using the facilities of an analytical laboratory and under the supervision of nutritionists. There are also a large number of small scale feed mixers who produce feed for local consumption. Such feed is termed Self Mixed Feed or Home Mixed Feed.

CATTLE FEED
The productivity of the cattle is limited because of their poor genetic make up , so high quality compound feed ( Industry Feed ) may not necessarily generate a
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significant improvement in productivity and this has hampered growth of a cattle feed industry. Instead they compromise by using such feed in proportion of 5 to 60 percent, making up the balance with their own formulations. It is only in the case of highly productive animals that compound feed has been able to show its real potential and the importance of technology has been demonstrated. The share of compound cattle feed manufactured by the industry in relation to the overall potential , is low for the following reason; The cattle population is fragmented and spread over large part of the country. Farmers low level of education and strong traditional beliefs mean that there is generally little awareness of compound cattle feed. According to Extract From Animal Feeding Safely , report of an FAQ expert consultation present condition of cattle feed is worldwide, tonnage of feed exceeds 4 billion tons per annum of which some 550 million tons are milled feeds . The largest portion of the 4 billion tons of feed involves subsistence farming on the Indian subcontinent and Asia. India is currently self sufficient live stock feeds and does not depend on imports. Instead, the exports large quantities of solvent extracted meals which are a major source of foreign exchange earnings

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3. COMPANY PROFILE
A BRIEF HISTORY OF KSE LIMITED
KSE ltd is a public limited company is a incorporated with substantial capital participation by the Kerala State Industrial Development Corporation ltd.Trivandram and though loans from industrial finance corporation of India, New Delhi. The company is engaged in the solvent extraction of ground nut cake and rice bran also. The oil thus obtained is moved for industrial purpose into the market. In addition is full-fledged livestock feed division engaged in the production of ready mixed Cattle Feed. The Company was registered in the year 1963. In 1973 the solvent extraction plant was started with processing capacity of 60 metric tons of cake per day. In 1976the company stated production of ready mixed feed with the production capacity of 50 metric tons per day and in 1983 the company increased the production of cattle feed to 120 mt per day which has recently been increased to 180 tons per day by the construction of a fully automated computerized plant. In 1988 company started a solvent extraction and cattle feed plant at Swaminathpuram near Palani, with production capacity of 150mts of cattle feed per day and processing capacity of 100-120mts of expeller extracted deoiled cake.In 1972, the company lased new cattle feed plant at pothannur near Coimbatore with a production capacity of 80 tons per day and in 1995 company has leased a plan in Mysore with the capacity of 50 tons per day. In 1996 the company started a new plant I Vedagiri at Kottayam in Kerala with the capacity of 240 tons per day. Kerala solvent extraction ltd comes out with a premium public issue on March 1993 which was oversubscribed, through the stock markets are showing a low trend, now Kerala Solvents share is still quoted at Rs.140 per share whose face value isRs.10. This reflects the confidence of investing in the company. It was in 1963 that Kerala Solvent Extraction limited now known as KSE ltd entered the solvent extraction industry setting up the very first solvent extraction plant in Kerala. The traditional coconut oil industry in state was facing a decline then. Though the largest producer of copra in the country, as much as 80% of it, Kerala the infrastructure to exploit the potential of its abundant produce. While the oil industry in other parts of the country were thriving. The Dr. Lokhanathan committee, set up to feasibility of starting new industries in Kerala, recommended the establishment of 3 solvent extraction plants. And one of them, in Thrissur district. The oil mill owners in and around Irinjalakuda, who were thinking in similar lines saw the opportunity and look the initiative to establish a solvent extraction unit. The solvent extraction plant went on the stream in 1972 and in 1976 a new plant was setup to manufacture ready mixed cattle feed, which was a pioneering step. Since then there, was no looking back. The last 3decades have seen KSE emerging as a leader in solvent extraction and ready mixed cattle feed in the county and though these years of consolidation and diversification KSE has crate a niche for itself. Today KSE commands the
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resources, expertise and infrastructure to manufacture a range of live stock feed in high volumes, coconut oil from coconut cake and refined edible oil. Since the early, KSE had endeavored to supply its products to customers through extensive network of dealers and retailers which from a dedicated force behind the success of KSE. It is matter of pride that KSE is household name today. The KSE is a public limited company having around 6000 shareholders. The board of directors consisting 10 directors in the executive committee responsible for the management the article of association of the company empowers the board of directors of directors to appoint one as the Chief Managing Director. The company has one Executive Director and one Whole Time Director. The Chief Managing Director, Executive Director and Whole time Director are the smooth running of day to day affairs of the company. Strategic decision of the company are taken by an executive body consisting of the Managing Director, Executive Director, Whole time Director, General Manager, Finance Manager, Nutritionist , Marketing Manager, Plant Manager and Purchase Manager. These executives are professionals with vast experience in their areas of specialization.

GROWTH CHRONICLE OF KSE

1972 - Solvent plant commences operation. 1976 - Mixed cattle feed production begins. 1987 - Cattle feed production reaches 180 tons Introduction of computers in the factory and office. 1988 - A new mixed cattle feed plant starts operation at Swaminathapuram, Tamil Nadu with a daily product ion capacity of 180 tones. 1989 - Solvent Extraction Plant of Swaminathapuram unit with a capacity of 120 MTs per day started production. 1990 - Cattle feed production capacity at Swaminathapuram unit increased to 150 MTs per day. 1991 - Palakkad Branch started. 1993 - Enter exports market 1994 - Keyes Forte, the new feed supplement for cattle introduced. Cattle feed production capacity at Swaminathapuram increased to 180 MTs per day.
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 1995 - Calicut Branch opened. 1996 - 240 TPD cattle feed Plant at Vedagiri in Kottayam District started operation. Company renamed as KSE Limited. (Formerly Kerala Solvent Extractions Limited) 1998 - Company acquired its fourth manufacturing unit at Palakkad for manufacturing Cattle feed. 1999 - A modern CHILDRENS' PARK AND INFORMATION CENTRE was completed at Irinjalakuda for the benefit of the Public. Company introduced 'K.S. Deluxe Plus" the Pelleted feed in HDPE bags for Kerala Market. 2000 - Company started production and marketing of Pasteurized Milk and Milk products from Konikkara Dairy, Trichur District, Kerala and Thalayuthu Dairy, Palani Taluk, Tamil Nadu. 2002 - Cattle feed production at Irinjalakuda unit increased to 195 MTs per day. 'VESTA' Ice Cream launched. 2003 - Started production of Cattle feed in a leased plant at Edayar, Kalamassery. Cattle feed production at the Swaminathapuram unit increased to 195 MTs per day. 2004 - Acquired Land from KINFRA for starting the new project of 200 TPD Solvent Plant and 100 TPD Oil Physical Refining Plant at Kinfra Park, Koratty. ISO 9001:2008 Accreditation for Irinjalakuda. 2005 - Cattle feed Production capacity at the Irinjalakuda unit increased to 210 MTs per day. Company acquired property at Mysore. ISO 9001:2008 accreditation for Vedagiri and Swaminathapuram units.

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 2006 - The 200 TPD Solvent Extraction Plant at Koratty commissioned. 100 TPD Physical Refining Plant at Koratty commissioned. Solvent Plant at Irinjalakuda dismantled. 2008 - Ice cream production unit commissioned at Thalayathu. 2009 - Cattle Feed production capacity at Swaminathapuram increased to 200 MTs per day. Commissioned Fractionation Plant at Koratty. Commenced 500 TPD Fully State-of-the-Art German Technology Animal Feed Plant at Irinjalakuda. 2010 - Ice cream production unit at Vedagiri commissioned.

OBJECTIVES OF KSE LIMITED

To produce, manufacture ,extract, purchase refine, prepare import ,export, sell and generally to deal in oil from seeds and other oil bearing materials to carry on the business of refining the hydrogenation of oil and the manufacturing of by products there from and of trades connected there with. To acquire erect, construct, establish operate, and maintain oil mills, extraction plants, and workshops. To purchase for the purpose of business of the company. Oil expellers denigrators , filter press , oil neutralizing , washing , dyeing bleaching ,filtration and hydrogen plants , punch machines and other machines . To purchase, manufacture, treat purchase sell or otherwise deal in oilcakes, washing soaps, toilet soaps, hair oils and timed products.

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VISION AND MISSION OF KSE

VISION We shall Endeavour to maintain leadership through quality products, explore new avenues in product development and marketing, create a stronger bond between the management, Workforce , dealers and customers ,contribute to social development and rural enlistment, and constantly strive for excellence in all spheres of our activities. MISSION To become a marker driving company from market driven company. Educate and train the livestock frames to practice scientific feeding to optimize livestock productivity. To support the development of knowledge based network on the feed related activities. To a culture of innovation and creativity amongst the employees. To be an active partner in community development program. To add more Ice-cream production units across Kerala in coming years. KSE, with a capital base of Rs.36 crores embarks on the expansion to double its solvent extraction capacity and add a most modern eco-friendly vegetable refining plant.

KSE PRODUCTION UNITS

KERALA KSE LIMITED, Irinjalakuda unit KSE LIMITED, Vedagiri unit, Kottayam KSE LIMITED, Palakkad unit KSE LIMITED, Edayar unit, Cochin KSE LIMITED, Konikkara unit (dairy) KSE LIMITED, Koratty TAMILNADU KSE LIMITED, Swaminathapuram unit KSE LIMITED, Thalayathu (dairy) KSE LIMITED, Erode KARNATAKA KSE LIMITED, Mysore unit
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AWARDS AND RECOGINATIONS

The solvent Extractors Association of India-SEA Award for highest processor of coconut cake in India, since institution of the award continuously for 20 years including 2009-10. Best productivity performance for Cattle feed in India Award from National Productivity Council continuously for Eleven Years 1996-97 to 2005-06. ISO 9001-2000 Certification. Kerala state productivity Council award. Top Cattle feed Award for aflatoxin free feed from The Indian Association of Veterinary Pathologists (IAVP) and Kerala Agricultural University. Tamil Nadu productivity Council Safety Award. Animal Nutrition Society of India Award for Companys contributions for propagation of balanced compound livestock feed in India. Industry Excellence Award from the Indian Society for the study of Animal Reproduction for the year 2001. Entrepreneur Award from the College of Veterinary and Animal Sciences.

SOCIAL SERVICE AND RESPONSIBILITY

The company gave so many contributions to the country at the time of uncertainties. It contributed 5 lakh each for Kargil and Tsunami Fund. As a part of social responsibility the company introduced KS PARK for the enjoyment and fun children. They are also spending Rs.50000 in each month for it. Also they were conducting some competitions for children occasionally.

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KSE & ITS PRODUCTS 1.K.S Cattle feed : One of the all times favourites in the cattle feed.
There are two forms of Cattle Feed o Mash form o Pellets form Mash form contains K.S. Super: A Special cattle feed that has won immense popularity. K.S. Ordinary Pellets form contains K.S. Deluxe Pellets: A bypass protein fed with ISI mark, specially made for cattle with superior germ plasma and high production potential. K.S. Deluxe plus pellets K.S. Supreme pellets 2. K.S Supreme (Refined Sunflower Oil) 3. Jersey Copra Cake: Protein rich, tasty, de-oiled coconut cake. 4. K.S Forte (Feed Supplement Tonic): An invigorating feed supplement for cattle. 5. K.S Mineral Mixture 6. Milk Products K.S Paal K.S Ghee K.S Curd K.S Butter Milk Vesta Ice Creams

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COMPETITORS
In cattle feed sector, competition is high, as government sector company Kerala Feed set a plant at Kalletumkkara (Irinjalakuda). They have come up with MSE brand of cattle feed. Other milk making federation of Kerala is also strong competitor of KSE. Other players in the market are Amul, Godrej, Tata, HLL (Gold Maher brand), Mysore feeds, Prima. Vesta Ice-cream has also competitors some of them are Joy, Arun, and Uncle John etc. In the milk and milk product Sector Company have lot of competitors. In fact the company is not allowed to compete the market with its strongest opponent MILMA. Government is showing high protectionism towards Milma. KSE Ltd is given permission to procure milk only from certain areas of Thrissur District and it is only allowed to market milk in Thrissur and Ernakulam District.

PROMOTERS
Kerala Solvent Extraction limited has been promoted by the persons traditionally engaged in the business of oil extraction, trading in the cattle feed. The Promoters are well known for their quality products. The Promoters are: * Mr. M.C. Paul - Chairman and MD * Mr.T.O.Paul - Executive Director * Mr.P.K.Varghese - Whole time directors * Mr.A.P.George - Director and Legal Advisor Chief General Manager - Anand Menon

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ORGANISATION STRUCTURE

Board of Directors

Executive Director

Managing Director General Manager

Whole Time Director

Finance Manager Assista nt A/c Manag er Assistan t Financial Manage r Clerk Share Depar tment

Purchase Manager Execu tive office r Clerk

Personnel Manager Execut ive officer Clerk Security Officer

Marketing Manager Assist ant Sales Mana ger Custom er Service

Quality Manager Chief Nutritio nist Lab Atten der

Producti on Manager

Engineer

Security Guard

Executives

Sales Repre senta tive

Work er

DIAGRAM 1 :ORGANISATION STRUCTURE

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FUNCTIONAL DEPARTMENTS
The departmentation helps in specialisation of work in each field.It helps in better planning and better concentration in the particular work handled by a particular department The Various Departments in KSE Ltd are as follows: 1.Personnel Department 2.Finance Department 3.Purchase Department 4.Production Department 5.Marketing & Sales Department 6.Quality Control Department 7.Stores Department

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PERSONNEL DEPARTMENT

Personal Manager

Executive Officer

Security Officer

Officer

Security Officer

Junior Officer

Senior Security Officer

Senior Assistant

Secutiy Guard

Officer Assistant Watchman Clerk

DIAGRAM 2 : Structure of PERSONNEL DEPARTMENT

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The workers have the important role in existence and the growth of an organization. So it should be managed carefully. The growth of industries is to larger and complex units employing various categories of workers created special problems. Hence, a separate department specialized in the knowledge of human relations is inevitable. The personnel manager utilizes the maximum individual ability, promotions of team spirit, develop job satisfaction, reduce labor turnover and improve production. And also leads to attain the organizational goals the personnel department of KSE ltd is very efficient and functioning very well under the control of an efficient personnel manager.

FUNCTIONS
Recruitment Man Power Planning Welfare Functions Grievance Handling Discipline Industrial Relations Job Description Job Analysis Job Specification Training Development Performance Appraisal Career Planning Public Relation

RECRUITMENT
The recruitment is done on the basis of the requirement of the company. At the initial stage, an expert will be asked to submit a project report on the requirement & recruitment will be based on the report. The requirement of employee is based on the request of each department. The selection committees consist of General Manager, Personnel Manager, and the Manager of concerned department. On determining the requirement, notification is given on various media. A written test is conducted, from candidates those who are selected in 3:1 ratio to the number of vacancies. Interview is conducted to select apt candidate

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Unskilled Workers He Should be in age group 25 30 years He should not have Studied more than 8th standard He should be reciding within a radius of 5 kms of KSE LTD Office Staff He should be graduate Shift Engineer He should be a Diploma holder from ITI Security Man He should be an ex-service man in age group of 35 40 years

TRAINING
KSE LTD gives the job training to the employees. They are kept in probation for 6 months. If company found it unsatisfactory , then probation period may be extended. Induction training is given at this period

PERFORMANCE APPRAISAL
KSE LTD follows a system of performance appraisal. The department makes appraisal report of the employees, workmen, to the Personnel manager and confirmation of job is done only after this report

TRANSFER
According to discretion of the management employees or work men may be transfer from one department to another department or from one section to another section or from one job to another job

CLASSIFICATION OF EMPLOYEES /WORKMEN

The employees/workmen are classified as permanent probationer, badali, or substitute, temporary and the casual.

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 A permanent employee or workmen in one who has engaged on a permanent basis by a return order to that effect and includes any person who has satisfactorily completed probationary periods of six months Probationer is one who provisionally employed to fill a permanent vacancy in a permanent or temporary post, otherwise than temporary or casual employees and continuous as such until he has been notifies by the management that he is made permanent from the temporary post after satisfactory completion of the probationary period of the employment Badali / substitute are one who is appointed in the post of permanent workman and the probationer who is temporary absent. A temporary employee is one who is employed for the work which is essentially temporary nature likely to be finished within a limited periods or who is employed temporarily in permanent post. A casual employee or workmen is one whos employment or an occasional or casual nature and who is not entitled to claim for the future and continuous employment.

TERMINATION OF SERVICE
The employment of permanent employee/workmen other than those working under special contract shall not be terminated without giving 1 months notice in writng either by employee or workmen in the case of monthly rated and 14 days notice in the case of daily rated employees or 1 month pay or 14 days pay, as the case may be. Such notice of payment however will not apply in case of terminated of service consequent on disciplinary action Any employee of work men who lives the service without giving prescribed notice shall be liable to be sued for damages. In case of termination of Service, the workmen/employees will be entitled for payment of wages earned by them subject to deduction of amounts due. If any to the company within 2 days of termination

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GRIEVANCE PROCEDURE
All complaints of individual nature regarding payment of wages, wage calculation, grant leave, overtime, work assignment, working conditions, confirmation, transfer, interpretation of service agreement and other compliments of similar nature arising in the course of employment may constitute grievances and the same shall be redressed in a systematic manner.

EMPLOYEES SELECTION PROCESS

Employees are selected strictly based on their education qualification, work experience, technical knowledge and age. The company will do the recruitment by giving the advertisement through: Newspapers Employment Exchange By promoting their own employees based on their performance.

REMUNERATION
There are 3 types of wage earners Unskilled but permanent workers gets daily wages Badali workers wage on weekly basis Office staff salary on the last working day of every month Salary Consists of Basic pay Fixed Dearness Allowances Variable Dearness Allowances

ALLOWANCES
Dearness Allowance Conveyance Allowance House Rent Allowance Washing Allowance Shift Allowance Canteen Subsidy/ Tea Allowances Leave Travel Allowance Statutory Allowances

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STATUTORY ALLOWANCES 1. PROVIDENT FUND

Employee provident fund have three parts. They are:

Provident fund Pension fund Deposit linked insurance

The employer provides an amount equal to 12% of employees salary to employee provident fund. 8.33% goes to provident funds and rest of the amount goes to pension fund. 5% of his salary to deposits linked insurance.

2. BONUS
Company can give bonus in the range of employee salary. KSE is paying 20% of bonus to all employees.

3. GRATUITY
According to central legislation half month salary for every year service should paid as gratuity on retirement. Company also joined LICs group graduate insurance scheme, under this scheme if employees determines to leave before completing his term in office, gratuity will be paid considering his remaining years of work as well.

TRADE UNION
Trade Union is association of workers formed with the intension to protect workers from the exploitation of employers and also to improve the working conditions. The main objectives of trade union are to ensure better wages, good work culture and conditions, protection against injustice, labour welfare, peace and collective bargaining. In KSE 3 trade unions are working they are,

INTUC CITU BMS

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EMPLOYEES WELFARE ACTIVITIES

Employee pays Rs.20 per month. The employer also pays 20% per month towards this fund. This is utilized to give loan, scholarship for students of employees etc. On the death of employee one month salary is paid to dependants towards funeral expenses.

SAFETY MEASURES
For Safety of workers at plant they provided with Mask First Aid Facility Dust Extraction System in plant, which helps to suck the dust arising at the time of production

LEAVE AND HOLIDAY

Company allows & sick leaves for non ESI employee. Company allowed 9 days casual leave for daily rated wages and 11 days for monthly rated employees. Government has notified 4 national holidays and festival holidays. KSE ltd allow all these holidays.

RETIREMENT
Retirement age of employee is 58 years. The personnel Department was seen as a place where the lesser productive employees could be placed with minimal damage to the organisation ongoing operation. Individual in the personnel department were perceived as those responsible for planning company picnics, vacation schedules and retirement parties. Perssonal as an activity were seen as a necessary but unimportant part of the organisation. Fortunately things have changed for better and the status of the personnel department has improved enormously over the year.

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FINANCE DEPARTMENT
Finance Manager

Deputy Accountant

Deputy Finance Manager

Deputy Share Manager

Executive Officer

Executive Officer

Executive Officer

Officer

Officer

Officer

Junior Officer

Junior Officer

Junior Officer

Senior Officer Assistant

Senior Officer Assistant

Senior Officer Assistant

Office Assistant

Office Assistant

Office Assistant

Clerk

Clerk

Clerk

DIAGRAM 2 : STRUCTURE OF FINANCE DEPARTMENT

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Classification of finance function

1. Money Management 2. Record keeping & reporting 3. Control function 4. Auditing function

Aims of finance function

1. Accruing sufficient funds 2. Proper utilization of funds 3. Increasing profitability 4. Maximizing firms value

Scope of finance function

1. Estimating the financial requirements 2. Deciding capital structure 3. Selecting the source of finance 4. Implementing financial controls

Source of finance
Source means come where the money was come the business there are mainly three source of generating funds. They are: Share capital Reserves Bank loan Accounts department plays a vital role in any organization. KSE Ltd has an efficient accounting department. The chief finance manager controls all function of this department. The deciding of accounting policy and their implementation is the main duty of finance manager. The main function of this department are making payments and receipts, preparation of books of accounts and income tax return, and controlling all affairs of financial aspects of the organization this department thus makes all payments to provident fund, gratuity, employees welfare fund etc. Company has 8 crore of working capital. In this 6 crore in Irinjalakuda plant, 1.25 core at Swaminathapuram and 1.75 cores at Vadagiri.
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Company keeps as inventory required for production for 20 days minimum stock. Company pays wages of daily workers in cash while salaries are paid in either cash or cheques as per requirements of employees. KSE follows the cost accounting principles and procedures. Almost all departments are computerized. All work is done by special application program developed for use of the company. The main aim of the finance department is maximum utilization of fund at minimum cost.

Functions of Finance Department

1. Payment of raw materials In purchasing raw material 90% of the payment is made on the delivery time. Balance payment is made after checking the quality and quantity of the material. This needs material receives report. Order bill and lab report. It includes item, weight, gross quantity, net quantity etc. If the quality is not satisfactory rebate is charged. 2. General payments This includes stationary charges, telephone charges, ESI, PF, housing loan, taxes etc. 3. Receipts& cheque collection This mainly includes sales receipt. The company accepts sales receipts and Payments in the form of cash, DD, cheque etc. Company has accounts with 12 banks. The company avails credit mainly from Bank of Baroda. Company makes all payments by cheque and receives payments by cheque only, if the amount is more than 25000. As per policy LSE Ltd not allow sales on credit. 4. Salary payment Plant workers will get salary on 6th day of the month and office staff will get salary on 31st of the mount. If an employee needs salary as advance, he can take 50% of the salary another function of finance department is to collect or transfer surplus fund to centre unit. Since from 1976 KSE has been making steady profits and paying uninterrupted dividend and a yearly 20% bonus to the employees.
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Another important function of finance department is preparation of monthly profit & loss account. This statement called for all board meeting once in a month. On the basis of quarterly results the company statutory accounts are published in the leading newspapers. Thus the financial future of KSE looks secure and bright.

FINANCIAL HIGHLIGHTS
2011-12 Rs.in Lakhs Sales and Other Income 54336.28 Gross Profit (Profit Before Dep and Finance Cost) Profit before Tax Net Profit After Tax Shareholders Equity Capital Employed Gross Fixed Assets 1587.04 1044.93 3971.18 4898.67 7308.62 667.31 449.81 3335.35 4498.23 7194.27 2387.83 2010-11 Rs.in Lakhs 45436.07 1446.98

In Rs. Shareholders equity/share 124.10 Earnings/share of Rs.10 each 32.65 Dividend Rate 110%

In Rs. 104.23 14.06 100%

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PRODUCTION DEPARTMENT

Production Manager

Engineer

Plant Engineer

Main Foreman

Electrical Foreman

Store Officer

Godown Executives

Shift Engineer

Boiling Operator

Electrical Supervisor

Store Supervisor

Officer

Maintainance Operator

Figure 4.3: Structure of Producation Department

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All functions relating to production is managed by a separate department. The main production of KSE is cattle feed. Production process is controlled by computerized systems using microprocessors. The unit has a well-equipped modern laboratory. SOLVENT EXTRACTION PLANT Preparatory section The raw material (coconut oil cake) is brought here and is cut to size from here oil cake is transferred to the extraction plant through the elevator.
Extraction

Here, continuous counter current extract is used for extraction. Hexane is used as a solvent. Cake is removed in left through the extract while heated hexane at 63-70oC is sprayed on it. It takes 1 hour for the cake to pass through the extract by this time most of the oil cake would have dissolved in hexane. The mixture of oil and hexane is called Misulla. Oil is separated from hexane by distillation. Oil is boiled at 3000C while hexane is boiled at 60.2*C. Following this function all hexane from oil is removed. Hexane in gas form is condensed in an condenser and used again. Cake is removed of its hexane by drying in a drier. Before packing this deep-oiled cake a little water is sprayed upon it as hot cake cannot be packed as such. CATTLE FEED PLANT Using the de-oiled cake, which is a by-product of solvent extraction process, starts steady mixed cattle feed production. Cattle feed is produced, using more than 20 raw materials. The formula for cattle feed production is formulated by nutritionist. The formula will exchange according to the availability of the raw materials. Seasonal fluctuations affect the availability and the price of the raw materials. The important raw material used for this purpose is coconut oil cake, soya bean cake, cotton seed cake, maize, rice, wheat barn, and nutrients etc. RAW MATERIALS The various raw materials used for production of cattle feed are as follows: Maize Tower Sun flower extraction DORB Rice polish
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De-oiled coconut cake Ground nut extraction Soya bean meal Tamarind seed powder Wheat bran/flakes Rape seed extraction Ragi powder Cotton seed extraction Molasses Calcite powder Urea Salt Minerals

In the cattle feed production MMCP formula is used, i.e., 4 steps of production process. M- Milling M- Mixing C- Cooking P- pelleting

Cattle feed is produced in two forms: * Mash form * Pellet form The raw materials are mixed and milled together. Mash form requires only these two processes to make it in the pellet form. The mixed raw material is cooked and converted in to pellet form.

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PURCHASE DEPARTMENT

Purchase Manager

Executive Officer

Junior Officer

Senior Assistant Officer

Office Assistant

Clerk

Figure 4.4: Structure of Purchasing Department

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The purchase department places an important role because purchasing has its effect on every vital factor. Its function is procure material supplier, and service, machine, and tools at most favorable terms consistent with maintain the desired stand of quality. Purchasing is an important function, because for the purchase of materials a, substantial part of the companies finance is committed which affects cash flow position of the company. The purchase committees make important decision about purchasing raw material for the cattle feed production.

FUNCTIONS OF PURCHASE DEPARTMENT

1. To give order for raw material 2. To ensure continuous availability of raw material so that there may be uninterrupted flow of material for production 3. To contact brokers all over India to know about market price 4. To purchase proper quality of raw material at reasonable standard 5. To ensure weight of the purchased goods and storing it in proper place for easy retrieval and use 6. To develop alternative sources of supply, so that material may be purchased from that alternative source, if a particular supplier fails to supply the material. Purchase of raw material for cattle feed production is an important procedure of purchase department. Therefore, the purchase of raw material is on requirement for production. The raw material is purchased according to the availability and capacity of go down. The nutritionist prepares the formula for the production and the raw material arranged on the basis of it. The formula is prepared on the basis of availability of the raw material. The other important purchase procedures are placing order, price of raw material, purchase contract and material receipt.

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MARKETING AND SALES DEPARTMENT

Marketing Manager

Sales Manager

Customer Service Manager

Sales Executive

Sales Executive

Senior Assistant

Senior Assistant

Office Assistant

Office Assistant

Clerk

Clerk

DIAGRAM 5 :STRUCTURE OF MARKETING DEPARTMENT

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The vision of the marketing department is to find project and to give tenders according to the marketing condition and on the basis of the previous project in order to get good turn over for the organization and is also the basis for the future trends in the organization. Marketing department can also study the future trends of the economic condition and government policy in order to respond to tenders. The department has to plan whether to go for low cost or high cost.

FUNCTIONS OF MARKETING DEPARTMENT

To conduct market survey for the future requirement. To make detailed survey on the trends. To maintain the relationship with customer and their agencies To maintain good relationship with government

MARKETING MIX Product Price Place Promotion, are the factors of the marketing mix. This four Ps are equally important for the marketing of the product. If any P is weak, the products will be a failure. Marketing activities taken place in KSE involves the market survey. Information is collected from the market through the market survey . in order to know the pulse of the market information is collected from various sources like dealers, distributors, competitors, newspapers, journals and magazine and sales force. The important marketing strategies are:1. Pricing strategy 2. Product strategy 3. Distribution strategy 4. Promotion strategy

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SALES PROCEDURE The purpose of marketing is to promote sales. The important procedures taken place in the sales division of the department is: First procedure is receipt of incident with demand draft Entering into order book. Next step is preparing the dispatch plan Dispatch vehicle is arranged Delivery order is issued Weighting before and after loading Invoicing preparation
SALES OF CATTLE FIELD

Cattle feed id bi-furcates into mash form and pellet form. KSE has an exceptional range of products. Cattle feed in mash and pellet forms are divided according to their quality. K.S supreme pellet has got ISI mark. De- oiled cake marketed in the name jersey copra cake has also feed supplements KS forte. Sales of all products are through authorized dealers. Ex-factory In ex-factory sales all risks are borne by the party from the factory gate itself. In this risk are borne by the company up to parties go down ex-factory sales are common. Customer Induction It is a difficult process in cattle feed industry. The following methods are adopted by KSE in the various situations. 1. Demonstration/customer education This is intended to give first-hand knowledge about the product to the customers. 2. Samples/ free coupon scheme This method id used as an introduction tool. 3. Trade credit scheme In this the customer is supplied with a bag for current use. The cost of this bag
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will collect along with the supply of replacement bag. This put a moral obligation on the part of the customer to purchase KSE product again. The KSE did away this practice; because of technical reason the dealers are encouraged to do so. 4. Door delivery system In a high competitive market prompt delivery is an attractive one and KSE insist on dealers to follow this method. 5. Exhibition and Mela scheme * Festival exhibitions * Agricultural exhibitions of government * Livestock shows in Wayanad etc. * Diary exhibition Vetinary college etch Customer service The customer servicing refers to the process of understanding the minds and needs of them and solving their problem gracefully. The product of KSE is supplied to all parts of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu and strong in rural marketing .The products are segmented and marketed with Different strategies in the local areas. The main advantage is that it is cheap to compare with similar cattle feeds of others like Vijay, Godreg and Kerala feeds. The areas of services are identified as follows; Medical backup facilities It is an essential follow up service. The KSE has employed vetinary doctors to find out the effect of each type of cattle feed in each geographical area. This will have a goodwill effect on customers of the feeds. If any area is disorganized soon remedial measures can be taken the earliest. Counselling The KSE has definite counselling plan for all customers. Redressal cell Majority of the customer are farmers of economically weaker sections of the society. KSE ltd is concentrating on this point and providing instant redressal to
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such class of claim. Publications To impart latest information and to adopt customers with changing trends. KSE publish its own bulletins and leafs lets to the customer in selected areas. Recognition and training Every year KSE select few members of customers and give them suitable award like the best cattle power, largest milk producing cow etc. to boost the spirit among the customers. KSE also imparts farm training to selected group of workers. MARKETING PROMOTINAL SYSTEM In modern marketing, customer is the king. Marketing is connecting the link between producers and customers. KSE ltd has effective and energetic sales department. Sales management forms to only one aspect of the whole of marketing. Function of marketing department: 1. Product planning Product have the company must have the quality of satisfying the need of the customer. KSE ltd has a vetinary doctor as nutritionist. It is in consultation with nutritionist, marketing department decides on new project. 2. Packing policy Packing has important effecting sales. A cattle feed is not a customer product. Package design decision involves mainly weight of packing, convenient to the customer. Recently small package of 10 kg is introduced for convenient sales. 3. Pricing Price is fixed on the basis of availability of raw material, transportation cost, and storage and distribution charges. KSE has adopted a competitive pricing strategy 4. Market survey
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KSE ltd has % supervisory agencies throughout Kerala and they give feeds back about the market and customer attitudes toward the product. Based on the survey, KSE makes suitable modifications on product and marketing channels. 5. Some promoters are considered before giving fresh dealership They are, * Social status * Financial backgrounds * Trust worthiness 6. Sales procedure The purpose of marketing is to promote sales. KSE ltd makes an order incident book. This includes date, name of the product; amount etc. so the dealer can mention the product and its quality then sales department will sends delivery order to go down stock given to dealer after security clearance.

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QUALITY CONTROL DEPARTMENT

Quality Control Department

Nutritionist

Assistant Manager

Chemist

Junior Chemist

Lab Attendent

DIAGRAM6 : STRUCTURE OFQUALITY CONTROL DEPARTMENT

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OBJECTIVE OF QUALITY CONTROL DEPARTMENT To take necessary steps to maintain the quality of products To take different measures to improve the standards of products To achieve a better quality level and better conformity of quality KSE has developed a tradition of trust. An on-going improvement in manufacturing process plays a vital role in ensuring high standards. KSE has adopted mechanized production and computerized quality control in its operation. QUALITY CONTROL ACTIVITIES Quality control activities are mainly at three stages: Incoming raw material Production process In finished goods Raw material must maintain its specification. It must contain required quality of protein, fat, moisture etc. Any increase or decrease in these items wills adversely affects the quality. Before using for production process the raw material are checked in companys lab for good quality input. The formula for the cattle feed production is formulated by nutritionist. This formula includes all specification needed for the product. Only the purest and best raw materials find its way in to the factory. Well-equipped laboratories under the expertise of scientists, continuous supervision by experienced nutrition specialists and the assimilation of international developments. In the field of animal nutrition, KSE has an edge in product development and quality.

PRODUCT SPECIFICATION
1. KS Cattle feed Protein : 14 - 16% Oil content : 2% 2. KS Special Cattle feed Protein :14 16% Crude fibre : 11 -12%
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3. KS Super Cattle feed Protein : 16% Oil : 2% Fibre : 12% 4. KS Deluxe Protein : 16 -17% Fat : 2% Fibre :3% 5. KS Deluxe Plus Protein : 17 18% Fat : 3% Fibre : 12% 6. KS Supreme Protein : 22% Fat : 2% Fibre : 12% Sand & Silica : 2%

STORES DEPARTMENT

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Stores Department

Stores Officer

GoDown Executive

Stores Supervisor

GoDown Supervisor

Stores Clerk

GoDown Assistant

Worker

Worker

DIAGRAM 6 : STRUCTURE OF STORES DEPARTMENT

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In the company stores department is divided into two 1. General Stores 2. Go down

FUNCTIONS OF STORES DEPARTMENT

1. Identify the material that has reached the recorder level. 2. Storage and proper keeping of the materials. 3. Issuing material to the customer department. 4. Stores all data regarding the storage and supply of raw materials in the computer. Computerization of this department helped the company to save a lot of time and eliminate various records like storage holder. STORAGE CONSUMPTION DEPARTMENT It is prepared by the store keeper and sends the account department for recording it in the profit and loss account. The consumption of material by each department is shown in this department. GENERAL STORE The officer in charge of general store is storekeeper.The store keeper is responsible for identifying the materials that has reached the reorder level and is responsible for its storing.The main item purchased and stored here are spare part of machinery , packing material , and belt , chain and other miscellaneous articles GODOWN The Compny store raw material for one month or one and half month. The company has got more than 7 godwns. In the case of sampling of good all the visible impurities are identified. The impurities like fatty acid can be found only after lab analysis. In the godown they follow FIFO. As the department computerized annual stock can be calculated easily

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SWOT ANALYSIS
STRENGTH Experience in the field over 40 years. Leadership in the Cattle feed Market. Reputation and brand image of the company for the quality of its
products.

Good network of dealership in South India. Fully computerized plant as compared to the technology used by
other manufacturers, KSE has got upper hand.

Good employer-employee relationship; good employee welfare

programs and benefits like gratuity, allowance, bonus etc.

WEAKNESS In adequate promotional activities for dairy products, company is

giving more priority to the promotion of its cattle feed products.

Employee overhead is high as it is a public limited firm. Limitations of Management; role of trade unions.

OPPORTUNITIES
Financial strength of the company leading to better purchasing power. Exemption of value added tax on sale of cattle feed, de-oiled cakes and coconut oil enabling the company to effectively combat with the competitors. Expanding its distribution areas. Adequate infrastructure can be made available for the production of other animal feeds.

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THREATS
Competition from other manufacturer of organized and unorganized sector, e.g. Kerala feeds. Probable entry of multinational entities. Upward revision of fuel price increasing the price of ingredients manifold. Granting of subsidy on animal feed by the Government selectively avoiding private manufacturers. Indirect control of Government over price of milk. Stagnant numbers in cattle population affecting market growth in future, as cattle rearing are still not very economical. Import of cheaper oils leading to fall in demand for solvent extracted coconut oil.

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CONCLUSION
KSE is the brand leader in the cattle feed, where ever its products are available. The ever increasing popularity of KSE is range of high quality products. They understand the need and preference of the customer. KSE has always been at work to provide the right product, at right price. KSE enjoys the brand loyalty and sizeable share of market, especially in the home state, Kerala. This study always also gives an idea about the performance of the management functions which leads to success. The management practices gave the real picture of the functions like planning, organizing, staffing, controlling, coordinating, etc. The social responsibility of the management, business ethics, strategy, decision, organization development techniques etc. gave the image of the professional management of KSE ltd.

FINDINGS
The total turnover during the year under review improved by 19.52% compared to previous year. Despite of adverse condition in cattle industry , company maintains a good performance in cattle feed division without drop in sales. The price of several ingredients has doubled during the last 2 years. The oil cake processing has marginally improved compared to previous year. There is adequate internal control system so as to ensure safety to its assets against loss. The company is now catering the Tamil Nadu market also. In Diary division the milk operation are carried out at a lower level so as to meet requirements of milk and cream for production of Icecream with true quality. KSE ltd to give more importance to its marketing activities so that they can tap the potential and future market. The concerned authority should spend the time to hear the suggestions of their employees and consider their innovative ideas seriously for the development of their company. Although the company has provided safety masks for the workers they are not using it.

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 Earlier they have more customers in the Thrissur District but now because of the competition from Kerala Feeds they have more customers in Sothern Districts

SUGGESTIONS
The company should pay more attention to the markets outside Kerala. Increase the price of the cattle feed judiciously without loosing the market share. Setting up of more ice cream production units for improving volume of production thereby profitability of diary division Customer retention measures should be enhanced. Create awareness among the workers about the importance of safety measures Company can earn more profits by expanding its diary market. Use TV Advertisements to promote the products.

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BIBILOGRAPHY
Annual reports of KSE ltd www.kselimted.com KSE Newsletters and booklets Marketing review- magazine

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