This is certified that the internship study titled AN ORGANIZATION STUDY IN ASSAM TEA CORPORATION LIMITED is based on an original project studied and conducted by Miss Dibya Limbu; Reg.No.13MG2108 of III trimester MBA under the guidance of Prof. Raagesh This organisation study is based on original research and has not formed the basis for the award of any other degree/diploma by Bangalore University or any other university. PROF.RAAGESH (INTERNAL GUIDE)
REV.FR.JOSEKUTTY DR. VIJAYBHASKARAN PRINCIPAL HEAD OF DEPARTMENT (MBA)
Date:
COMPANY CERTIFICATE
DECLARATION
I, Dibya Limbu hereby declare that this report titled An Organization Study at Assam Tea Corporation Ltd was carried by me during the period of 3 weeks under the guidance and supervision of Mr. Dilip Rajkhowa, Executive manager of the company and Prof. Raagesh, Kristu Jayanti College of Management and Technology. I also declare that this report An Organization Study is the result of my own efforts and has not been submitted earlier to any other university or institution for the award of any degree/ diploma/certificate or published any time before.
PLACE: BANGALORE DATE DIBYA LIMBU 13MG2108
ACKNOWLEDGEMENT
I express my immense thanks and hearty gratitude to Mr.Dillip Rajkhowa , Branch Manager , for permitting me to work on my project AN ORGANIZATION STUDY AT ASSAM TEA CORPORATION LTD for their ample support, valuable guidance, & encouragement that has been enabled me to accomplish the study. I would like to offer my sincere thanks to our beloved Principal, Rev. Fr. Josekutty for the noble guidance. I am thankful to Dr. Vijayabaskaran head of department (MBA) of Kristu Jayanti College of Management for his whole hearted co-operation in bringing out this project. I take this opportunity to express my deep gratitude and thanks to Prof.Ragesh for having kindly consented to be my internal guide and having taken keen interest in my project, which was a source of encouragement. Lastly I express my pro-founded gratitude to my Parents, Friends, Faculty members and Staff of Assam tea corporation ltd
1.1: INTRODUCTION Organization is a systematic arrangement of people to accomplish some specific purpose. Every organization is composed of three elements i.e. people, goals and system. Each organization has a distinct purpose. This purpose is expressed as goals generally. Each organization is composed of people. Every organization has a systematic structure that defines the limit of each member. Some members are managers and some are operatives. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems--they affect and are affected by their environment. Besides this, the Structure of an organization is very important for its growth as it provides the basic frame work for its progress and expansion. It is particularly important for decision making purpose.
1.2: OBJECTIVES OF THE STUDY
The report is based on an organization study. The main objective of the study is to analyze and know various activities and their functional areas. The organization study has been conducted in one of the industry which comes under Assam Tea corporation ltd (under Govt.ltd), Negheriting Tea Estate, Jorhat, Assam. The study was undertaken in order to know the various departments of tea industry in Assam.
1.3: SCOPE OF THE STUDY The organizational study was conducted in a tea estate of Assam tea corporation ltd (govt ltd), a tea manufacturing company where production of tea take place. They produce tea for the Assam tea auction Centre (Guwahati), which exports all over India. This study helped me to interact with various department of the organization. The study helped me to understand the functioning of the marketing &sales, materials, finance, production and their planning departments.
1.4: NEED OF THE STUDY In order to have the partial fulfillment of my MBA degree, I have done 15 days of my organizational study in the tea industry of Assam tea corporation ltd.(govt. comp), which is one of the most reputed and recognized tea company in all over India. This industry produce tea and supplies to the Assam tea auction Centre, which is located in Guwahati Centre, Assam and then they export to all over India. This organizational study helped me to find out the various levels of management departments and their functions. Besides that, the staff over there was also very supportive and gave their helpful hands during the period of my study. The company I selected was due to its brand image as Assam tea as it is known to be one of the best teas in the country.
1.5: SOURCES OF THE INFORMATION
This organizational study was conducted by collecting information from both primary and secondary data sources. The primary source was collected through the manager, staff and their employees and labourers of the company. The secondary sources were the articles, websites, reports, newspapers, etc.
1.6: LIMITATIONS During the period of my study had to face some of the limitation that is bound in the company which can be lack of time period. Besides this, the staff also hesitated to disclose their confidential data regarding their company.
CHAPTER-2 INDUSTRY PROFILE
2.1: HISTORY Tea was first introduced into India by the British, in an attempt to break the Chinese monopoly on tea. The British, "using Chinese seeds, plus Chinese planting and cultivating techniques, launched a tea industry by offering land in Assam to any European who agreed to cultivate tea for export. Maniram Dewan (1806-1858) was the first Indian tea planter. In the early 1820s, the British East India Company began large-scale production of tea in Assam, India, of a tea variety traditionally brewed by the Singpho people. In 1826, the British East India Company took over the region from the Ahom kings through the Yandaboo Treaty. In 1837, the first English tea garden was established at Chabua in Upper Assam; in 1840, the Assam Tea Company began the commercial production of tea in the region, run by indentured servitude of the local inhabitants. Beginning in the 1850s, the tea industry rapidly expanded, consuming vast tracts of land for tea plantations. By the turn of the century, Assam became the leading tea producing region in the world. As of 2013 the consumption of green tea in India was growing by over 50% a year. The major tea-producing states in India are: Assam, West Bengal, Tamil Nadu, Kerala, Tripura, Arunachal Pradesh, Himachal Pradesh, Karnataka, Sikkim, Nagaland, Uttarakhand, Manipur, Mizoram, Meghalaya, Bihar, and Orissa. Indian tea companies have acquired a number of iconic foreign tea enterprises including British brands Tetley and Typhoo. India is also the world's largest tea-drinking nation.
2.2: OVERVIEW
GLOBAL VIEW OF TEA INDUSTRY: Tea industry is one of the significant industry in India as its place as one of the second largest tea producing country in the world. Tea is among the world's most widely consumed beverages. One of the biggest markets for tea is the United States where Americans drink 3.6 billion gallons annually and supermarket sales top $2 billion, according to the tea association of the USA. Black tea is predominantly produced and exported by Kenya and Sri Lanka. Green tea is mainly grown and consumed in China. Although black tea is by far the most produced and exported tea, production and exports of green tea are rapidly increasing. Asia-Pacific dominates the global market and accounts for 40% of the total demand in the tea market. The maximum production of tea and the largest areas under tea plantation belong to India and China respectively. Leading tea-producing countries are China, India, Kenya and Srilanka. While production of black tea is growing 3.9% annually, production of green tea is growing 11% annually and herbal tea production is growing more than 15% each year. The trend towards health consciousness, coupled with this increased competitive pressure, will further drive new product development in the next five years, which will in turn drive industry demand. The global market is highly concentrated. However, the presence of large unorganized market in Asia Pacific is expected to impact the profitability of Western producers. TEA INDUSTRY IN INDIA: Tea isnt simply tea in India but it is like a staple beverage here and a day without it is impossible and incomplete. Indians prefer their steaming cup of tea because for them it acts as an energy booster and is simply indispensable. This popular beverage has a lot of health benefits too as its antioxidants help to eliminate toxins and free radicals from the blood. Originally tea is indigenous to the Eastern and Northern parts of India, but the tea industry has expanded and grown tremendously over the years, making India the largest grower and producer of tea in the world. The tea production in India was 8, 81,400 tonnes as of 2013. In terms of consumption, export and production of tea, India is the world leader. It accounts for 31% of the global production of tea. India has retained its leadership over the tea industry for the last 150 years. Even the export sector of India has experienced an increase in the export of this commodity. There is a wide variety of tea offered by India; from Green Tea to CTC tea to the aromatic Darjeeling tea and the strong Assamese tea, the range of tea available in India is unparalleled. Indians take a lot of pride in their tea industry because of the pre-eminence of the industry as a significant earner of foreign exchange and a significant contributor to Indias GNP.The three prominent tea-growing regions in India are Darjeeling, Assam and Nilgiri. While Darjeeling and Assam are located in the Northeast regions, Nilgiri is a part of the southern region of the country. Majority of the tea factories are located within the premises of the tea estates and this is what accounts for the freshness of the tea. The process of tea production has a series of procedures and processes. The process starts with the plucking of tea leaves in the tea estates by women employees carrying a basket over the head and ends with the production of the ultimate tea. There are mainly two ways of producing tea in India namely the CTC production and Orthodox production. CTC is an acronym for crush, tear and curl. The tea produced by this method is mostly used in tea bags. The orthodox production method consists of five stages, namely withering, rolling, fermentation, drying and finally storing. It is not possible to compare the two varieties because their quality depends on factors such as rainfall, soil, wind and the method of plucking of tea leaves and both possess a unique charm of their own. As the primary producer of an assortment of tea, India is the ideal destination for all tea enthusiasts.
CHAPTER-3 COMPANY PROFILE
3:1 NATURE AND HISTORY Assam Tea Corporation Limited is a wholly owned Government of Assam public sector undertaking established in 1972. It comprises of 14 tea estates spread over 13000 hectares of prime land scattered over 6 districts of the picturesque state of Assam located in the north eastern part of India. The company was formed during the British Raj by a group of Britons to acquire, as going concerns, six Sterling tea companies, is today controlled by the Bermuda-based NRI, Mahindra Mehta. The company, which is the oldest tea company in the world, changed its name in 1989 from Assam Company (India) to its present one and their tea gardens have been existing from 1858 before the company was formed. There are 1184 laborers in the company excluding the staffs. There are 32 staffs and 39 sub staffs and 1 manager and 2 assistance manager in one particular tea garden of Assam tea corporation ltd.
3.2 VISION The vision of this tea company is to provide quality tea products to respective consumers and emerge as the top tea corporation in the world.
3.3: MISSION Assam tea corporation ltd is committed towards providing tea products at minimum possible price to its members and as well as its distributors and ensure economic viability within the corporation. 3.4 QUALITY POLICY Assam tea corporation ltd is involved to produces welfare through customer delight by adopting continuous improvement and ensure pure and hygienic tea products.
3.5 OBJECTIVE OF THE COMPANY The main objective of the company is to analyse and know various activities and their functional areas. The organization study has been conducted in the industry of Assam tea corporation ltd (under govt. ltd), negheriting tea estate, Jorhat, Assam. The study was undertaken in order to know the various departments of tea industry in Assam and their products that they are providing to the nations as well as world. The corporation is completely and continuously involved in improving its processes to ensure if the objectives are met as per given schedules.
3.6 AREA OF OPERATION
The Assam tea bush grows in a lowland region, in the valley of the Brahmaputra River, an area of clay soil rich in the nutrients of the floodplain. The climate varies between a cool, arid winter and a hot, humid rainy seasonconditions ideal for growing tea. Because of its lengthy growing season and generous rainfall, Assam is one of the most prolific tea-producing regions in the world. The industry is located in, negheriting tea estate, Jorhat, Assam.
3.7 COMPETITORS:
Tata Tea Tata tea is one of the top tea brands in India. However, there are other companies based out of the country that are performing well in the Indian market. The tea industry is one of the main avenues of earning foreign exchange for India and also contributes handsomely to the Gross National Product. India can presently be regarded as a global leader when it comes to production, export, and consumption of tea. Society tea Society Tea is a Hasmukhrai & Co product. The company was incorporated during 1933. The company offers a wide range of tea products that may be enumerated as below: Leaf Premium Dust tea Ice tea Tea bags
Arcuttipore Tea Co Ltd: The company owned a tea estate at Silchar (Cachar district), Assam. The yield per hectare has increased from 400 kg to 2450 kg due to efforts made by the management. ATL came out with a Rs. 6 crores public issue at a premium of Rs. 30 in Mar'95 to part-finance a Rs. 10 crores project to increase the capacity from 7 lac kg pa to 14 lac kg pa and to diversify into tea exports, teak plantation and black pepper. Hemalatha Textiles, Star Textiles & Industries, Hooghly Mills and Mega Market Share resources are the other group companies. Asian Tea & Exports Asian Tea & Exports is a leading exporter of Tea. We are recognized by the Government of India as a Star Export House. Our operations are compliant with the quality systems as laid down under ISO: 9001 and HACCP standards. For five years - Asian Tea & Exports has been awarded the prestigious Niryat Shree Export Award by FIEO, Ministry of Commerce, and Government of India for excellence in exports. Our group is engaged in tea plantation & manufacturing, trading and exports of tea, international trade and imports of various commodities.
CHAPTER-4
PRODUCT PROFILE
Genmaicha Green Tea Kukicha Green Tea
Makum Junction Sampler Ilam Artisanal - Nepal
Kyoto Matcha - Japan Organic Sencha - China Organic Yunshancha - China
Some of the tea samples are as follows:
1. Genmaicha green tea:("brown rice tea")
It is the Japanese name for green tea combined with roasted brown rice. It is sometimes referred to colloquially as "popcorn tea" because a few grains of the rice pop during the roasting process and resemble popcorn. This type of tea was originally drunk by poor Japanese, as the rice served as a filler and reduced the price of the tea; which is why it is also known as the "people's tea." It was also used by those persons fasting for religious purposes or who found themselves to be between meals for long periods of time. Today it is consumed by all segments of society.
Genmaicha is also sold with matcha (powdered green tea) added to it. This product is called Matcha-iri genmaicha (Genmaicha with added powdered tea). Matcha-iri genmaicha has a similar flavor to plain genmaicha but the flavor is often stronger and the color more green than light yellow.
2. Kukicha, or twig tea:
It also known as bocha , is a Japanese blend made of stems, stalks, and twigs. It is available as a green tea or in more oxidized processing. Kukicha has a unique flavor and aroma among teas, due to its being composed of parts of the tea plant that are excluded from most other teas. Regular Kukicha material comes from production of Sencha or Matcha. When coming from Gyokuro's production, it takes the name of Karigane or Shiraore. Kukicha has a mildly nutty and slightly creamy sweet flavor. It is made of four sorts of stems, stalks and twigs of Camellia sinensis. For best results, kukicha is steeped in water between 70C to 80C (155F - 180F). Green varieties are best steeped for less than one minute (over steeping or steeping too hot, as with all green teas, will result in a bitter, unsavory brew). Kukicha is one of the preferred teas of the macrobiotic diet. Kukicha can be added to juice to make childrens drink.Kukicha is unique in that it is naturally very low in caffeine without any industrial decaffeination. 3.Ilam artisalan:
Tucked in the mountain ranges on the west of Nepal is the district of Ilam. One of the few tea growing districts of Nepal, the cup character of its tea is comparable to teas from Darjeeling district of India; which is right next door. Most teas here are produced by small family farmers, and cured at home manually, without use of any tea manufacturing machinery. This is a batch of semi-fermented tea from a small farmer in eastern Nepal. The leaves are large, dark brown, twisted and with ample silver buds. The brew is sweetish, aromatic and has a fantastic lingering mouth feel. The body is smooth and lightish with dominant muscatel and woody aroma.
The Assam tea corporation ltd. basically deals in this kind of tea production in their respective industries. Besides this, there are two kinds of methods: Orthodox and CTC both named after the manufacturing process. Quality leaf makes quality tea. There is no way around that. Quality leaf is determined by the pedigree and health of the tea bush and by careful hand-plucking. But like wine, tea manufacture is a fine art involving years of experience, in-depth know-how and often closely guarded secrets. The crucial step in making black tea is to allow the juices in the rolled fresh leaves to darken from contact with the air. Tea makers call this process fermentation, although, technically, it is oxidation. A similar process occurs when a cut apple turns brown. The dark substances that form while the tea leaves are exposed to the air is produced by the chemical reactions of the tannins in the tea. The leaf is spread out and left to wilt, losing some moisture, stiffness and much of its weight. Then its rolled, exposing essential oils to the air and starting the oxidation process. When the leaves have transformed sufficiently, then they are fired, dried over heat to stop the oxidation process. In practice when a factory is running, samples are taken every hour and tasted which may indicate how the manufacturing process needs to be readjusted. Tea Planters judge determine the quality of tea by its bright color and taste. The liquor when left to cool should turn opaque. GRADES OF ASSAM TEA Tippy teas have a higher percentage of buds which show up as golden flecks (like tobacco) in the finished tea. The more tippy the tea, the higher the grade/quality. Very tippy teas are expensive. Top grade Orthodox is sorted entirely by hand and woolen blankets are sometimes used to further separate the fine golden tips. Orthodox names often have the words golden or flowery in the description but some names. are confusingly common to both methods (Orthodox & CTC) of manufacture.
The four grades of Orthodox black tea are: 1. Flowery Orange Pekoe (the small leaf next to the bud). 2. Orange Pekoe (the second leaf next to the bud). 3. Pekoe (the third leaf next to the bud) and 4. Souchong (the fourth leaf next to the bud).
TGFOP (Tippy Golden Flowery Orange Pekoe) is the highest grade of Orthodox Assam, hand processed in small quantities at the finest plantations. It contains roughly one-quarter tips. The joke among tea aficionados is that TGFOB stands for Too good for ordinary people. TGFOB fetches top prices in the Arab world. It is drunk pure without milk. Bottom of the barrel are the Fannings and Dust. This is the tea that goes into tea bags. Tea Dust is also what is boiled in milk and spices to create Indian street chai, which is a whole different cuppa altogether.
CTC TEA: At the start of the 20th century when tea drinking caught on in the UK, British tea companies started experiments in Assam and the CTC method invented and used to the increase volume of tea. CTC is the acronym for Crush, Tear & Curl. It describes the factory process used to make the tea which is similar to that of orthodox tea manufacture but instead of the leaves being rolled as a final stage, they are passed through a series of cylindrical rollers with hundreds of small sharp teeth that Crush, Tear, and Curl the leaf into tiny little balls.
CTC tea gives double the cup for the same weight as orthodox. For example one Kg. of CTC tea yields around 500 cups compared to 250 cups from Orthodox. The quality of Orthodox however is better than CTC as the coarse leaf is discarded at the time of manufacture by shifting.
CHAPTER-5 ORGANISATIONAL STRUCTURE AND DESIGN
5.1 Organization chart of Assam Tea Corporation
The organization structure in Assam Tea Corporation follows the above simple structure. Organization structure is the skeleton of the organization. It prescribes the formal relationship among various position and the activities. Arrangements about reporting, relationship, how an organization member is to communicate with other members, what roles and procedures exist to guide the various activities performed by the members of all parts of the organization structure. Organization structure plays a vital role in achieving the organizational goals. Organization structure should be properly designed to facilitate the smooth functioning of the organization. Administration department:
Processing department:
Quality control departments activities
Brief Outline of Instrumentations Installed in Assam Tea Corporation Processing machinery in the Assam Tea Factory have been equipped with various sensors as detailed below: Withering Trough (Enclosed & Open) Leaf moisture Sensors Leaf temperature Sensors Temperature and RH of air at ambient, above and under the leaf bed Rotor vane Leaf temperature sensor at discharge Current sensor for motor load Interfaced with LCU for CTC.
Triplex CTC Machine Leaf temperature sensors at each cutting unit Current sensor for motor load at each cutting unit Variable speed (AC Drive) for motor speed variation LCU consisting of Industrial PC and signal transmitters. Continuous Fermenting Machine (CFM) Online display of throughput time Leaf bed temperature sensors RH sensors CO 2 sensor O 2 sensor Camera LCU consisting of Industrial PC and signal transmitters. Floor Fermentation (FFM) Leaf bed temperature sensors RH sensors CO 2 sensor O 2 sensor LCU consisting of Industrial PC and signal transmitters. Gumla/Fermenting Trough (GFM) Leaf bed temperature sensors RH sensors Interfaced with LCU for Floor fermentation (FFM) Drier (VFBD) Temperature sensors for T 1 , T 2 , T 3 & T 4
RH sensors at exhaust of wet semi dry and dry zone. 7Airflow sensor (fitted at upstream of the hot air fan) LCU consisting of Industrial PC and signal transmitters.
Continuous belt Weighed (MCW) Continuous and online record of dryer mouth tea Interfaced with LCU for Drier Impregnation of Oxygen during Fermentation of CTC Tea Adoption of Impregnation of Oxygen during Fermentation (technology), especially with high- yielding slow-fermenting cultivars, increase in productivity can be achieved due to reduction in fermenting time. Also, the industry can also adopt the technology to manufacture superior quality of black tea using continuous fermenting machines.
CHAPTER-6
SWOT ANALYSIS
SWOT analysis:
STRENGTH :
The diverse agro-climatic conditions prevailing in the tea growing areas of India lend themselves to the production of a wide range of teas black, (CTC, orthodox), green teas and organic teas. A one-stop-shop for high quality specialty teas e.g. Darjeeling, Assam, orthodox, high range Nilgiris, etc. Strong production base with 75 per cent of the production being accounted for by organised sector covering 1,600 gardens owned by nearly 1,100 entities. Competent managerial manpower. Strong research backing from well-established research institutions. Availability of modernised and upgraded manufacturing facilities. Labour welfare laws protecting workmen. Emerging small grower sector with young plantation profiles. Availability of training facilities for plantation managers, supervisory staff and workers for continuous upgradation of their skills. Strong domestic market by accounting for nearly 80 per cent of production offering demand cushion for the tea industry.
WEAKNESS:
Old age of the tea bushes nearly 38 per cent have crossed the economic threshold age limit of 50 years and another 10 per cent on the verge of crossing this limit shortly. High cost of production mainly due to low productivity, high energy cost and high social cost burden. Diminishing availability of workforce. Remote location of the plantations and transportation of teas over long distances from tea gardens to sale points. Poor infrastructure approach roads to gardens, inadequate warehousing at ports, constrained availability of containers, placements of vessels and high ocean freight charges (due to feedermother vessel transfers). Difficulties in introduction of mechanization of field operations due to topographical and quality limitations. Unorganized nature of small growers with fragmented small and scattered holdings leading to production of poor quality teas mainly due to non-availability of technical know-how at the doorstep weak extension service. Lack of quality monitoring mechanism for teas particularly sold through private sales.
OPPORTUNITIES: Good awareness level world over as to the health attributes of tea leading to growing demand for good quality teas and specialty teas such as organic teas, green teas. Narrowing down of the gap between supply and demand due to increased growth rate of consumption in the major producing countries. Producing countries reaching an agreement for forming an exclusive forum for resolving their differences over common issues. Positive response by the tea industry responding to the Government towards renovation of fields and processing factories. (Special purpose tea fund and quality upgradation initiative). Increasing strength of small growers and showing good response to the suggestion of Tea Board for collective approach towards adopting GAP and GMP.
THREATS: Consistency in quality commitment and high service quality perception of exporters of other countries. Better developed packaging and bagging capacity in the different countries compared to our nations.
The main important problems of tea industry in Assam are: Fluctuation in tea prices. Rise in production cost Cost of labor production. Increase in fuel cost Inadequate power supply Inadequate machineries Fall in quality of tea products Decline in exports. In order to overcome this problems, the government has taken some steps to improve and recommended following measure: All tea for sale should go through tea auction Centre. There should be amendment of tea marketing control order Incentives to tea producers coming for tea auction Orthodox tea production should be subsided. Subsidy to replantation should be increased Promote organic tea cultivation.
CHAPTER-7 FINDINGS, SUGGESTION AND CONCLUSION
FINDINGS Following are the findings during the study: This corporation is found to be one of the best brand image tea producing company in the country. The government has been initiating and trying to bring out modern method of techniques in order to improve their production sector. The company has got its own laboratory in order to improve the quality products of different type of tea produce in different factories. The corporation has got more than 1000 employees in each of the factories in Assam.
SUGGESTIONS Following suggestion to be provided in order to improve the company: The tea cultivation should be taken more care and should be replaced every 4 to 5 years. They should try to focus on the best packaging and qualitative products of tea. They should try to improve the techniques and methods of the producing the tea in the factory. Modern technology and machinery should be much more provided in order to increase the production. Facilities and benefits and bonus to be provided to the staffs and the respective laborers. Best fertilizers and pesticides to be provided to the laborers in order to have good cultivation.
CONCLUSION Assam tea grown at sea level, is known for its body, briskness, malty flavour and strong bright colour. Though Assam indicates the distinctive black teas from Assam the regionals produces relatively smaller quantities of green tea and white teas according to the demand of the shareholders. Today, Assam is the world single largest tea growing region at present Assam produces about 55%of the country total tea production.
BIBILOGRAPHY OFFICIAL WEBSITES www.assamtea.com www.indiateaindustry.com