A REPORT ON ORGANISATION

STUDY AT
SYNTHITE INDUSTRIES LTD.,
KOLENCHERY

SUBMITTED BY

BINU MATHEW

Submitted in partial fulfillment of the requirement for the

award of the degree

MASTER OF BUSINESS ADMINISTRATION

MG University, Kottayam

MARIYAN INTERNATIONAL INSTITUTE OF

MANAGEMENT
YEAR 2014

DECLARATION

I BINU MATHEW, 2nd semester MBA student of Mariyan International

Institute of Management,Kuttikanam, hereby declare that this report on
ORGANISATIONAL STUDY AT SYNTHITE GROUP OF INDUSTRIES,
under the guidance of Pro. Nelson Mariyan International institute of
Management, Kuttikanam, in partial fulfillment of the requirement for the
award of the degree of Master of Business Administration is a bonafide study I
have done by me. I also declare that this report has not been previously formed
the basis of award of any Degree, Diploma, Associate ship, Fellowship or any
other similar title of this or any other university or institution.

Place:
Date:

BINU MATHEW

ACKNOWLEDGEMENT
Foremost, Im grateful to god for extending my hands towards me for the
successful completion of this project. His grace and mercy has brought
me thus far and Im grateful.
I would like to thankful to our Director Dr. P.V Mathew for his
encouragement and guidance given for the progress of the report.
I owe my sincere gratitude to our Associate Dean Prof. Samson for his
continuous support, effort and encouragement along with his knowledge
and experience, enriched me to have a clear and practical approach
towards my work.
I express my sincere thanks to Mr. Vineeth P Mathew, Sr. HR specialist
Learning & Development, for inspiring me and for his valuable guidance
and assistance provided. Also I express my sincere thanks to the
management and staff of SYNTHITE GROUP OF INDUSTRIES Pvt Ltd for
their support and co-operation throughout the tenure of the project and
far giving me an in-depth knowledge on the various process related to
Human Resource and Personnel Management in the company. Once again
I would like to offer my sincere thanks to all for

their benevolent and

expertise guidance without which this project would not have seen the life
today.

INDEX
CHA. NO

CONTENT

PAGE NO

INTRODUCTION
1

INDUSTRY PROFILES
INDUSTRY PROFILE
HISTORY OF SPICES
PROBLEMS IN THE INDUSTRY

ORGANISATION PROFILE
ORGANISATION PROFLIE
PRODUCT PROFILE
ORGANISATION CHART

FUNCTIONAL DEPARTMENTS
PRODUCTION DEPARTMENT
PRODUCTION PLANNING DEPARTMENT
HUMAN RESOURCE DEPARTMENT
LOGISTICS DEPARTMENT
MARKETING DEPARTMENT
INFORMATION SYSTEM DEPARTMENT
QUALITY CONTROL DEPARTMENT
RESEARCH & DEVELOPMENT DEPARTMENT
FINANCE DEPARTMENT
MATERIALS DEPARTMENT

SWOT ANALYSIS & CONCLUSION

INTRODUCTION
Synthite is the term for excellence; it is the largest Oleoresin extraction firm in the world
established in the year of 1972. They are contributing to 30% of Indias export in the spice
market.they have a portfolio of over 500 products and application oriented solutions.
The product range of Synthite includes raw spices, Oleoresins, Essential Oils, Floral
concretes, Resinoids, Seasonings, Health / Functional food ingredients, Spray dried and
added value products as well as application oriented solutions.

With in the short span of years, Synthite has recognized as Export house by Ministry Of
Commerce and Industry, Government of India. Now, Synthite has diversified from its core
business of Bio ingredients into Spices, Farm tech, Realty, Hospitality, and Power generation.
The main office of Synthite group is locating at Kadayiruppu near to kolenchery, Ernakulam
district in Kerala. It has a fragrance division at Marudur, established in the year 1986, near to
Coimbature, Tamilnadu. In the year 1991 an in house research laboratory was recognized by
the Department of Sci ence & Technology, Government of India. Then in 1993, the research
lab of Sythite was upgraded and rechristened as the CV Varkey Centre for Research &
Quality Assurance lab. Year 1993 was a mile stone in the history of Synthite , they diversified
and entered into Realty and Hospitality by launching Riviera Suites, Keralas first luxury
apartment hotel.
Synthite Exports Ltd was established in the year 2000 and by 2001 Synthite established a
Natural Color division at Harihar in Karnataka. Synthite entered into wind energy sector by
2003 and started 500KW wind mill energy division at Udumelpetu, Tamilnadu. In the year
2006 the spice division of Synthite was launched at Pancode. Synthite Natural Specialties
(SNS) was formed in 2011. SNS launched Natural colors under the brand name NECOL,
natural antioxidants under the brand name NEAOX and Specialty flavors.

OBJECTIVES OF THE STUDY

i.
ii.
iii.

To familiarize with a business organization to relate theory with practice.

To familiarize with an organization structure and functioning.
To familiarize with different departments in the organization and their functions and

iv.
v.
vi.

activities including documentation.

To understand how the key processes are carried out in an organization.
To conduct SWOT analysis of the business organization.
To study the financial performance of the organization by doing financial analysis.

METHODOLOGY
The study was conducted by visiting the head office of Synthite Group, Synthite Industries
Ltd located at Kadayiruppu, Kolenchery. The study was scheduled for 30 days. The study was
conducted by the collection of primary and secondary data. Primary data was obtained by the
close interactions with concerned persons of each department. Secondary data was collected

from documents such as annual reports, company documents, department manual, company
website, library, etc.

LIMITATIONS OF THE STUDY

Due to time limitation an in-depth study was not possible.
This report provides only an over view of the organization.

CHAPTER 1
INDUSTRY PROFILE

INDUSTRY PROFILE
India has traditionally been known for its spice and culinary herb production. It is one of the
largest spice producing and consuming country. Its strategic location, climatic conditions,
advanced production processes and availability of cheap labor makes it advantageous for the
producers for ensures large scale production of quality spices and herbs.
The world spices trade is mainly concentrated on black pepper because it is the largest traded
spice in the international market both in terms of quantity and value.
International Trade Centre-UNCTAD has estimated in the year 2009-2010 that pepper
contributes 34 percent of the total of spice trade by volume followed by chilly at 22 percent,
seed spices 17 percent tree spices 14 percent, turmeric 5 percent, ginger 4 percent, cardamom
3 percent and vanilla at l percent in terms of value and volume. The global spice trade is
estimated at US $ 1.5 to 2 billion and 400 to 450 Thousand Metric Tons in quantity. Spices
market world over, is growing and significant growth has been noticed in specific spice
segments like hot spices in U.S., romantic culinary herbs in France etc. Major growth of
spices is accounted for by the industrial & food service sectors. In developed countries, the
usage of pepper in food industry has increased substantially because of its taste, flavor and
seasoning characteristics. More than 60 percent of pepper is consumed in industrial and food
service sectors and the balance is used for domestic consumption, medicines and perfume,
health and beauty segments. Ethnic foods are particularly Indian. Chinese and Thai are
having a growing impact in many countries and expanding to cover a wide range of tastes in
food. In developing countries 90 percent of the pepper is consumed in the household
segment.
India in spices industry
Tropical climate is considered as ideal for spices cultivation and the best quality spices are
available in the latitude belt between 250 North and 10o South of Equator. Spices do not grow
in extremely hot and cold regions. This peculiarity gives a special privilege for the spices
producing countries like India in the spices production and trade because those countries
which cannot produce spices have to fully depend on spices producing countries to meet their
inevitable medicinal and culinary needs. In the future also this advantage will help the spices
producing countries like India to have a sizeable share of the world trade in a localized
economy. An interesting and at the same time important point is that the lion's share of spices

produced in our country is used for domestic consumption and only 6 - 7 percent of total
production is exported. More than 100 crore of people with rapidly changing food habits,
offers a very good domestic market for all types of spices produced in India. It indirectly
implies that the increase in production is not likely to affect the market considerably. India is
the leading country in terms of area of cultivation and volume of production of black pepper.
About 1.85,000 hectares of land are used in India for Pepper cultivation and we produce
about 60,000 tons of pepper annually. Kerala is the homeland of black pepper which now
contributes more than 95percent of the country's area and production. The states of Karnataka
and Tamilnadu contribute the remaining.
Spices in Kerala
There are many countries producing these spices but the 'little Kerala' is considered as the
only source of top quality pepper and cardamom, which are the most important spices aptly,
called the 'Royal Couples' of spices. Kerala contributes the lion's share of total spices
production of India. 2, 69,178 hectares of land in Kerala is used for spices cultivation
producing more than 1, 60,000 tons of spices annually. Pepper alone is cultivated in 1.85.000
hectares, producing on an average more than 50,000 tons of black pepper. It has been
estimated that more than 90 percent of Indian pepper is produced in Kerala. Similarly, about
40.000 hectares of land in Kerala is under cardamom cultivation producing more than 5,000
tons of cardamom annually. This is about 60 percent of the total cardamom cultivation in
India. More than 70 percent of the cardamom produced in India is the contribution of Kerala.
Along with pepper and cardamom Kerala has remarkable contributions of ginger, Clove,
turmeric, nutmeg etc. It is equally important that a large number of families in Kerala resort
to the spices sector for their livelihood.
The international pepper exchange known as IPSTA ICE (International Pepper and Spices
Trading Association International Commodity Exchange) is functioning at Mattancherry, the
Jews town of Kochi. It is the latest contribution of our little Kerala to the world of spices
trading. The international pepper exchange, which started functioning on 17th November
1998, was the result over 40 years of highly reputed domestic trading. The integration of the
global trade in pepper through the inception of the international pepper exchange will
definitely help the concentration of world spices trade again in Kerala, which may be aptly
remarked as a historical regression.

HISTORY OF SPICES
The spice trade developed throughout South Asia and Middle East in around 2000 BCE
with cinnamon and pepper, and in East Asia with herbs and pepper. The Egyptians used herbs
for embalming and their demand for exotic herbs helped stimulate world trade. The word
spice comes from the Old French word espice, which became epice, and which came from
the Latin root spec, the noun referring to "appearance, sort, and kind": species has the same
root. By 1000 BCE, medical systems based upon herbs could be found in China, Korea, and
India. Early uses were connected with magic, medicine, religion, tradition, and preservation.
Archaeological excavations have uncovered clove burnt onto the floor of a kitchen, dated to
1700 BCE, at the Mesopotamian site of Terqa, in modern-day Syria. The ancient
Indian epic Ramayana mentions cloves. The Romans had cloves in the 1st century CE,
as Pliny the Elder wrote about them.
In the story of Genesis, Joseph was sold into slavery by his brothers to spice merchants. In
the biblical poem Song of Solomon, the male speaker compares his beloved to many forms of
spices. Generally, early Egyptian, Chinese, Indian, and Mesopotamian sources do not refer to
known spices.
Historians believe that nutmeg, which originates from the Banda Islands in South Asia, was
introduced to Europe in the 6th century BCE.
Indonesian merchants traveled around China, India, the Middle East, and the east coast of
Africa. Arab merchants facilitated the routes through the Middle East and India. This resulted
in the Egyptian port city of Alexandria being the main trading center for spices. The most
important discovery prior to the European spice trade was the monsoon winds (40 CE).
Sailing from Eastern spice growers to Western European consumers gradually replaced the
land-locked spice routes once facilitated by the Middle East Arab caravans.

Spices were among the most demanded and expensive products available in Europe in
the Middle Ages, the most common being black pepper, cinnamon (and the cheaper
alternative cassia), cumin, nutmeg, ginger and cloves.

Given medieval

medicine's

main

theory of humorism, spices and herbs were indispensable to balance "humors" in food, a
daily basis for good health at a time of recurrent pandemics.
Spices were all imported from plantations in Asia and Africa, which made them expensive.
From the 8th until the 15th century, the Republic of Venice had the monopoly on spice trade
with the Middle East, and along with it the neighboring Italian city-states. The trade made the
region rich. It has been estimated that around 1,000 tons of pepper and 1,000 tons of the other
common spices were imported into Western Europe each year during the Late Middle Ages.
The value of these goods was the equivalent of a yearly supply of grain for 1.5 million
people. The most exclusive was saffron, used as much for its vivid yellow-red color as for its
flavor. Spices that have now fallen into obscurity in European cuisine include grains of
paradise, a relative of cardamom which most replaced pepper in late medieval north French
cooking, long pepper, mace, spikenard, galangal and cubeb.
The control of trade routes and the spice-producing regions were the main reasons
that Portuguese navigator Vasco da Gama sailed to India in 1499. Spain and Portugal were
not happy to pay the high price that Venice demanded for spices. At around the same time,
Christopher Columbus returned from the New World, he described to investors new spices
available there.
Another source of competition in the spice trade during the 15th and 16th century was
the Ragusans from the maritime republic of Dubrovnik in southern Croatia.
The military prowess of Afonso de Albuquerque (14531515) allowed the Portuguese to take
control of the sea routes to India. In 1506, he took the island of Socotra in the mouth of
the Red Sea and, in 1507, Ormuz in the Persian Gulf. Since becoming the viceroy of
the Indies, he took Goa in India in 1510, and Malacca on the Malay peninsula in 1511. The
Portuguese could now trade directly with Siam, China, and the Maluku Islands. The Silk
Road complemented the Portuguese sea routes, and brought the treasures of the Orient to
Europe via Lisbon, including many spices.
With the discovery of the New World came new spices, including allspice, bell and chili
peppers, vanilla, and chocolate. This development kept the spice trade, with America as a late
comer with its new seasonings, profitable well into the 19th century.
PROBLEMS IDENTIFIED IN SPICES INDUSTRY

Low Productivity: Low productivity in the Spice sector is one of the serious
problems facing the Indian Spice industry. Result is low competitiveness in the

international markets.
Poor Product Quality: Poor product quality at farm level is another problem
hindering reasonable price realization by the producer. Insufficient infra-structure

facilities for cleaning, scientific methods of processing, storage and packing.

Insufficiency of Legal Provisions: Our present legal provisions relating to many
elements that constitute SPS measures are insufficient. The regulations under
AGMARK are only optional and not mandatory and are not even comprehensive.
Similarly, the provisions existing under the PFA are also not comprehensive and

provide loopholes for import of cheap spices from other countries of origin.
Some Indigenous Varieties are disappearing: The rapid disappearance of some
indigenous varieties of spices due to mixing of planting material results in loss of
genetic purity. Examples are varieties contributing to the production of Cochin ginger
(viz. Kuruppampady, Ellackal), Alleppey finger turmeric (viz. Elanji), and Byadagi

chilli, etc.
Poor Post-harvest Handling: Post-harvest operations involve drying, curing and
primary packing. This reduces problems of contamination. Scientific post-harvest
handling has yet to come to the agricultural operations in Uttaranchal. Our natural
comparative advantages in production are being whittled away due to the poor quality

of the produce.
Insufficient Mechanization of Spice Production and Processing: Lack of desired
level of value-addition at the primary processing level results in lesser returns to the

farmers and farm laborers.

Competition: India is facing stiff competition from other producing countries that
supply spices in whole form. Most of these countries have no domestic market for the
spices they are producing, forcing them to sell their produce even at cost price

(examples cardamom from Guatemala, pepper from Vietnam, cloves from Indonesia).
Rejection of Export Materials: Farmers of spices like cardamom, chilly and ginger
are heavily dependent on chemicals for pest and disease control and fertilizers.
Indiscriminate use of chemicals results in pesticide residues beyond tolerable limits,
leading to rejection of many consignments of spices from India. Trade restrictions on
contaminated food or feeds have the greatest effect on countries like India, which
currently have limited, or no available means of monitoring aflatoxin levels. The

toxins are particularly carcinogenic in humans and eating contaminated food often

results in liver cancer, amongst other diseases.

Agricultural Extension is not Market-oriented: Extension is not focused on the
needs of the market, especially the export market. The available market information
service is limited to a few areas and to a few sections and often fails to recognize

indigenous methods and factors to get a competitive edge in export of spices.

Pest and Disease Problems and Dependence on Nature: These are factors reducing
the acquired comparative advantage. This is one of the major reasons for the erratic
production of individual spices, earning the country the label of inconsistent supplier

of spices.
Poor availability of Inputs: This is restrictive factor especially planting material.
Also there exist a non-availability of suitable fertilizers and plant protection
chemicals, suitable irrigation, facilities for on-farm processing and storage, and

adequate credit.
Crop Insurance is absent: Unprecedented natural calamities often push these small
and marginal growers into a crisis situation. Small landholdings and less technical

know-how add to the problem.

Inadequate Surplus for Exports: Of the 31.50 lakhs tones of spices produced
annually, (excluding mustard), India could hardly export 7.58 per cent. There have
been severe shortages of exportable varieties of spices in certain years. The major
reason is burgeoning domestic demand. Demand for spices from the upwardly mobile
middle-class is on the increase. Changing eating habits and the population explosion
are also factors. This huge domestic demand leaves behind little surplus for export
and so exports are happening by accident rather than design.
EXPORT OF MAJOR SPICES IN VOLUME

ITEM
PEPPER
CARDAMOM(S)
CARDAMOM(L)
CHILLI
GINGER
TURMERIC
SEED SPICES
OTHER SPICES
CURRY POWDERS/PASTE

QTY(TONNES)
26,700
4,650
935
241,000
21,550
79,500
120,200
41,720
17,000

Percentage
5%
1%
0.2%
42%
4%
14%
21%
7%
3%

MINT PRODUCTS

14,750

3%

SPICE OILS &OLEORESINS

7,265
575,270

TOTAL
Source: http://www.iasri.res.in/vision/IASRI_Vision_2030.pdf

1%
100%

Estimated demand by 2030

Areas
Total demand
Black pepper 101160
Cardamom
16277
(S)
Ginger
1150003
Turmeric
1150003
Nutmeg
14186
Source: http://www.iasri.res.in/vision/IASRI_Vision_2030.pdf
Competing countries in production and export of major spices
Spices
Competing Country
Black
Indonesia, Brazil, Malaysia, Thailand, Sri Lanka, Vietnam, China (P.R),
pepper
Madagascar, Mexico
Cardamom Guatemala, El Salvador, Indonesia, Malaysia, Papua, New Guinea, Sri Lanka
(small)
Ginger
China (P.R), Thailand, Japan, Bangladesh, South Korea, Malaysia, Fiji,
Philippians, Jamaica, Nigeria, Sierra Leone
Turmeric
China (P.R), Pakistan, Bangladesh, Thailand, Peru, Jamaica, Spain
Clove

Brazil, Indonesia, Madagascar, Malaysia, Papua, New Guinea, Sri Lanka

Nutmeg and Grenada, Guatemala, Mexico, Nicaragua, Sri Lanka

Mace
Cassia
China, Indonesia, Madagascar, Malaysia, Vietnam, Sri Lanka
Cinnamon

Madagascar, Papua, New Guinea, Seychelles

Source: http://www.iasri.res.in/vision/IASRI_Vision_2030.pdf

CHAPTER 2
ORGANIZATION PROFILE

ORGANISATION PROFILE
1972 was the year of establishment of the world largest oleoresin firm called Synthite
Industries Ltd. It is the largest firm supplying ingredients to the major food, fragrance and
flavor houses. The history of Synthite has been proud and fruitful from its humble beginning
to the current situation. Synthite was established by Mr. C. V. Jacob, Chairman & Managing
Director of Synthite Group of Industries
Synthite contributes 30% of Indias export in the spice oleoresin market. Synthite has a
portfolio of over 500 products- from fresh & dried spices to Oleoresin, added value products
and application oriented solutions. It is also blessed with a workforce of over 1200 direct
employees and 6 manufacturing units across south India.
Synthite was among the first in India to enter spice oleoresin manufacturing and has grown to
become the worlds most trusted spice ingredient provider today, with a turnover of over
USD 125 million and commanding over 30%of the global market share.
Strength of Synthite lies in the commitment on delivering real value to customer through
quality products and cost effective processes.
Now, Synthite has diversified from its core business of Bio ingredients into Spices, Farm
tech, Realty, Hospitality, and Power generation.

BOARD OF DIRECTORS
Under the stewardship of board of directors, headed by Mr. C. V. Jacob (Chairman &
Managing Director), Synthite has grown as an ingredient industry major in the global market.
The Board of Directors includes five directors. The Directors looks after the operations and
functions of different departments of Synthite Group.
Chairman M.D - Mr. C. V. Jacob
Directors

- Mr. George Paul

- Mr. Ninan Philip
- Mr. Mani Varghese
- Mr. Dr. Varghese Jacob
- Mr. Aju Jacob

VISION
By consistently delivering the ingredients of success for the most exciting Food, Health and
Wellness Solutions, we will be partner of choice to our clients worldwide
MISSION

Growth : holistic growth

Innovation: continuously providing innovative solutions with increased focus on

R&D
Service: customer satisfaction
Enhance value: for all stake holders
Making it a great place to work: employee satisfaction

Core values

fairness
innovation
performance
commitment
communication
teamwork

Synthite Industries Ltd is a people focused organization with a highly conducive work culture
to bring out the best in an individual. We are a company with strong sense of family bonding.
We are committed to providing an environment where employees have the opportunity to
achieve their potential, are highly engaged and are empowered to deliver highest quality. We
are proud that our inclusive culture is the main ingredient that set us apart from other
companies. The foundation of a career with Synthite in fortified by the principle of
motivation, challenge and reward which makes our people globally competent. Synthite
provides opportunity for people to improvise and innovate.

OBJECTIVES OF THE COMPANY

Evaluation and implementation of better production methods through scientific,

technological and economical research.

Systematic development and regulation of the Indian Spice industry.
Excel to become the choice of suppliers for the worlds top 10 flavors house.
Target Rs.3000 cr turnover by the year 2020.

MILESTONES IN THE HISTORY & GROWTH

The company was established in 1972.
Recognized as an export house by the Ministry of Commerce Industry, Govt. Of India
in 1980.
In 1984, Herbal Isolates was setup for the manufacture of dehydrated green pepper,
pepper in brine, sterilized spices, essential oils, etc.
Fragrance division at Maradur, Coimbatore was set up in 1986 for producing floral
concretes and absolutes of jasmine, tuberose and mimosa with technical collaboration
with Cal-Pfizer, France.
The in-house research laboratory was recognized by the Department of Science and
Technology, Government of India in 1991.
Synthite acquired Sijmak Oils Ltd., Calicut in1992.
In 1993, the research lab was upgraded and rechristened the CU Varkey Centre for
Research and Quality Assurance.
Synthite became the first Indian company in the food sector to obtain ISO 9002
certification from BSI UK in 1994.
.In 1997, Quality systems was upgraded to ISO 9001:1994, by BSI, UK.
Synthite Exporters Ltd was established in 2000.
Established Natural Colour Division at Harihar in 2001.
500KW wind mill established at Udumalpettu, Tamil Nadu in 2003.
ISO 9001:2000 certifications were awarded by BSI, UK in 2004.
NABL Accreditation for the laboratory as per ISO/IEc; 17025:1999 in 2005.
The Spice Division was launched at Pancode in 2006. The company formed AramcoIndia with Aram Co, UK and Symega with Omega, Australia.
CO2 extraction plant was set up in 2007.
Synthite was awarded the ISO 22000:2005 certification in 2008.
In 2010, Synthite goes global, sets up establishments in US and China.

Synthites first overseas facility in Xinjiang, China was commissioned for the
production of Paprika in 2012.

Capsaicin production facility in Ongole, Andhra Pradesh and Lutein production

facility at Coimbatore, Tamilnadu was commissioned in 2013.

CERTIFICATION
LIST OF CERTIFICATIONS

NAME OF CERTIFICATION

ISO 9001:2008

Quality management system

ISO 22000:2005

Food safety management system

FSSC 22000:2010

Food safety system certification

ISO 14001:2004

Environment management system

ISO 18001:2007

Occupational health and safety standard

PAS 99:2006

Publicly available specification

HALAL JUM

Indian HALAL

HALAL MUI

Indonesian HALAL

KOSHER

KOSHER

EIA

Export inspection agency

FSSAI

Food safety standards authority of India

GMP NUTRACUETICAL

Good
manufacturing
nutracuetical

Organic certification

Organic product certification

ISO/IEC 17025:2005

National accreditation board for testing and

calibration of laboratories

practices

for

PRODUCT PROFILE
Synthites interest is diversified and covers the manufacture of bio ingredients and Spices,
Hospitality, Realty and Power generation.

Bio-ingredients
Spices
Realty
Farm tech
Hospitality
Wind energy
BIO- INGREDIENTS

Synthite commenced its operations with the manufacturing of oleoresin black pepper and
went on become to start manufacturing of all spice oleoresins.bio ingredients have a broad
portfolio of plant derived offerings developed last 39 years. The spice division is the essence
of Synthite Industries ltd. It offers value added products, many of which are unique to
Synthite, making it the global leader in its line of business. Bio ingredients division
comprises 5 manufacturing plants:

Synthite Industries Ltd Kolenchery, kerala

Synthite Industries Ltd Calicut, kerala
Synthite Industries Ltd, Coimbature, Tamilnadu
Synthite Industries Ltd, Harihar, Karnataka
Synthithe Industries Ltd, Khamam, Andra Pradesh

All the plants work 24 hours throughout the year. Major spices like Chili, Pepper, and
Cardamom are processed in dedicated plants throughout the year. Other spices like Nutmeg,
Ginger, Mace, Coriander, Cumin, Fennel, Fenugreek, Celery etc are produced in any of the
plants available based on the quantity required.
SPICE DIVISION
The spice division is located at Synthite Taste Park, ISO certified and HACCP compliant
processing facility, manned by a team of well trained personnel with stellar technical and
scientific knowledge.

The spice division offers whole powdered and processed spices that meet global quality
standards.
Process

Cleaning, de-stoning and color sorting

Steam sterilization
Grinding & crushing
Roasting
Customized blending
Packing
Private labels

Processing capability

Processing capability of 6000MT

ISO certified and HACCP compliant processing facility
2000 MT temperature controlled storage facility
Metal detectors and magnets throughout the process
Steam sterilizers wherein preset conditions give results as per international norms.

REALTY
in 1992 company made its entry into housing and property development division, named
Synthite Realty, first project was the construction of Ramada Resort, a luxury retreat by the
backwaters of Kumbalam near cochin. In the realm of housing development, the company
sets the standard with the launch of Spice Villas, an exclusive villa enclave situated amidst
greenery Synthite Valley, Kolenchry.
Rivera retreat
Rivera retreat is perhaps South Indias first fully air conditioned condominiums and is set in
tranquil surroundings right by the Thevara waterfront. This coveted piece of real estate spans
3.75 acres of beautifully landscaped terrain, including 600 feet of scenic waterfront. The
facilities provided in the glorious location includes swimming pool, childrens play area,
large lawn, indoor ba dminton, squash and tennis court and a club house. Set on edge of
backwaters, its ideal for group meeting, family gathering and festival celebrations.
Spice villas

Spice Villas truly, international villa enclave in the heart of kolenchery offers urban comfort
in a sylvan setting. There are 38 villas, clearly arranged to maximise open space. Some of the
facilities include parking, visitors parking, waste disposal plants, sewage treatment plant,
landscaped garden and a recreational area.
Vanilla Grove
This is a new project of company, features luxuary villas set in a former vanilla plantation.
FARM TECH
Synthite instituted the farm tech division to ensure traceability of raw materials. Synthites
unparalleled raw material sourcing ability is due to its highly organized farmer network
across the country and its high level control at source. Integrated pest management (IPM) is a
pest control policy wherein the main aim is to reduce and control the usage of pesticides and
to cultivate quality raw materials. Synthite offers the following crops under IPM Chili,
Cumin, Mustard, Fennel, Vanilla and Cardmom.
Organic products
Synthite farms take into account the growing consumer needs for chemical free ingredients
and eco- friendly farming practices. Synthite ensures sourcing from the origin, resulting in
complete traceability.
HOSPITALITY
Synthithe ventured into hospitality in a way that was characteristic of its pioneering spirit. In
1992 it launched what was perhaps Indias first apartment hotel, Rivera Suites. In line with all
the other group offerings, Synthite hospitality focuses on select, premium holiday
experiences. To this end, it has also tied up with Ramada worldwide to create an exclusive
lakeside getaway, Ramada resort, Cochin.
WIND ENERGY
As a company inspired by nature, Synthites diversification into Wind Energy creation
reaffirms its commitment to environment-friendly practices. Synthite is committed to
promoting and using clean energy and has commissioned two windmill generators to this
effect. The windmills are located in high wind density areas of Udumelpetu, Tamilnadu, and
the electricity generated is coupled to the Tamil Nadu State Electricity Board distribution

grid. The first wind mill was commissioned in September 2003. The 12500 KW generators is
coupled to the udumelpetu Electricity distribution circle. The second windmill was
commissioned in January 2004. With an annual production of more than 2 million units and
three more generators in the pipe line, Synthite proves its commitment to promoting
renewable and sustainable energy.

ORGANIZATION STRUCTURE

CHAIRMAN
OR
MANAGING DIRECTOR

DIRECTORS

Produ
ction
Manag
er

Marke
ting
Manag
er

Produc
tion
Planni
ng

Market
Resear
ch
Analys
t

Factor
y
Manag
er

Sales
Officer

Employees

HR

Finan
ce
Manag
er

R&D

QC

IT

Manag
er

Manag
er

Manag
er

Logist
ic
Manag
er

Person
al
Manag
er

Financ
e
Officer

R&D
Offic1.
75er

QC
Officer

Progra
m
Assista
nt

Assista
nt
Manag
er

Admin
istratio
n
Officer

Accou
ntant

Scienti
st

Chemi
st

Netwo
rk
Admi
nistrat
or

Execut
ives

Manag
er

Security

Safety

CHAPTER 3
FUNCTIONAL DEPARTMENTS

PRODUCTION DEPARTMENT

AGM

Production
Plant
Operations
in Charge

Shift in
Charge

Process
Improvement
in Charge

Plant
in
Charge

Operator

Operator

Helper

Helper

Process
Improvem
ent
Engineers

Scheduling
Management
in Charge

SAP Data
Entry/Docu
mentation/
Calibration
Personnel

Final Product
Blending
in Charge

Blending
Shop
Floor in
Charge

Pepper
Blending
in
Charge

Operator

Operator

PRODUCTION DEPARTMENT
This department oversees the entire production activities from raw materials processing to
product blending and packing. The main unit of Synthite is at kadayiruppu, it has 15 plants
dedicated to the conversion of raw materials into semi finished products. The final product
homogenizing blending and packing are carried out in designated areas. The bulk of the
product is transferred to storage in semi-finished form where it is taken for final product
blending as per customer satisfaction.
The production department is headed by GM for production. The managerial functions of this
department are performed by manager, senior manager, superintendent and assistant
superintendent for production. Operations in the plant are performed by plant operators.
There is separate process improvement team comprising chemical engineers whose
responsibility is to assist in improving various productions and introduce various
technologies.
The plants work throughout the year 24 hours a day. Major spices like chilly, pepper, mace,
coriander, cumin, fenugreek etc are produced in any of the plants available based on the
quantity requirement specified.
The production unit comprises of:
Continuous Pepper extraction plant
Continuous Chilly extraction plant
Batch production unit of various capacities for extraction of turmeric, ginger,
cardamom, green tea and roasted coffee and various spices and herbs
Supercritical CO2 extraction plant
Spray drying, encapsulation and granulation plant
The main activities carry out are:

Raw material processing

Extraction
Evaporation
Desolvenization

Production Process

The major products of Synthite are oils and oleoresins of different spices. First the company
extract oil from berries using distillation. Then the de-oiled remains are used to produce
oleoresins.
Distillation: The pre-processed raw material is loaded into distillation columns and high
temperature steam is passed through it. The steam which is rich in oil content is collected and
passed through a condenser. When condensed, oil remains above water due to low density
and can easily be separated.
The other output of the distillation process is the de-oiled cake which is rich in oleoresin. This
is collected in barrels and is transported to the continuous extraction plant (CEP) using a
forklift. The company has signed up with some external distillation vendors as a failback
mechanism.
Continuous Extraction: The de-oiled cake mixed with fresh pre-processed raw material in a
proportion 75:25 is the input for continuous extraction plant. A solvent is introduced to the
mixture and is collected after some time. The solvent is collected and evaporated to obtain
miscella, which is a mixture of oleoresin and solvent. The miscella is then de-solventised to
obtain crude oleoresin (crude batch). The unit has other extraction plants for other spices and
they can be used for pepper if required.
Homogenization: The crude batch, at this stage is a hot (90 C) dark green semi-solid with
uneven density and very high viscosity. It needs to be made uniform and free flow for further
processing. Homogenization plant converts crude batch into semi-finished good (SFG) batch.
The process involved ten hours of stirring and cooling (to 25 C 30 C) in a charging kettle
(2 MT capacity) followed by a sand mill operation. The sand mill is a cylinder containing
ceramic balls, rotating at high speed. The balls disintegrated the large fluid particles in crude
batch to create a lower viscosity, uniform density fluid. The output of sand mill is known as
the semi-finished good or SFG batch.
Blending: SFG is blend with additives and pepper oil to produce the final product according
to customer specifications. The shipped product variants normally contained 15% 20% oil
and 35% - 55% piperine (resin of pepper). The company had three mixing kettles for this
purpose. The pumps loaded SFG in these kettles and unloaded FG into barrels. The blending
time varied with the quantity blended.
In addition to these basic activities, specialised operations like purification of extract, spray
drying, granulation, pelletization and crystallization are also carried out to meet the technical
specifications of the finished product.
Other than solvent extraction, specialized technologies like Supercritical CO 2 Extraction and
Centritherm are also used to obtain higher quality products. The Supercritical CO 2 Extraction,
CO2 liquid compressed under high pressure is used instead of organic solvent. The advantages
of CO2 extraction are that it yields a superior quality product due to low thermal impact and it
has no solvent residue.

PRODUCTION PLANNING DEPARTMENT

HEAD

Executive
Manager

Manager
Group 1

Manager
Group 2

Manager
Group 3

Inventory
Manager

Officer
Customer
Samples

Execution
Officer

Execution
Officer

Inventory
Assistant

PRODUCTION PLANNING DEPARTMENT

The objective of the Production Planning Department is to optimize the supply chain of the
organization, taking changing market demands into account. Production Planning Department
is concerned with the planning and control of the entire production activities from planning of

buying of raw materials to finished goods as per the customer requirements. The main
function of planning department is making arrangements for raw materials, production
schedule, packing materials and effective shipment, based on the business plan for the year.
Production Planning Department is handled by head of planning and the functions of the
department are performed by planning managers and executives. The department looks to
coordinate forecast, schedule and implement daily, weekly, monthly and yearly activities of
the production unit.
Production Planning Department is responsible for achieving the desired objectives of
production and to carry out the production processes according to the plans and policies. The
department is also responsible to match the demand and supply of the company. First, the
demand for different products are analysed and the production quantity is determined, taking
into consideration the finished and semi-finished goods. Afterwards, the production process is
scheduled and is provided to the production department. Also, finished goods are transferred
to packing section by the planning department. Hence the production planning department
operates the production life cycle of the company.
Functions of Production Planning Department
Preparation of annual production plan based on annual sales plan.
Preparation of annual material requirement plan based on annual production
plan.
Inventory management.
Allocation of production plan to the various divisions to ensure optimum and
efficient utilization of available capacities.
Reduction of production cost.
Periodic review and revision of the Production Plan to meet changing market
conditions.
Activities of Production Planning Department

Long term planning (simulative planning runs in system).

Conversion of long term planning result to active production plan.
Generation of planned orders for internally produced items.
Generation of purchase requisitions for externally procured items.
Conversion of planned orders to process orders and its release to production

floor for production to start.

Inventory management for semi-finished and finished goods.
Preparation and forwarding of product sample to various customers and as
required by sales.
Operating the production life cycle of the product.

HUMAN RESOURCE DEPARTMENT

HEAD
HR &
ADMINISTRATION

Manager
(Training)

Superintendent

Manager
(HR)

Manager
(Administration)

Junior Manager

Superintendent

Assistant
Superintendent

HUMAN RESOURCE DEPARTMENT

It carries out the process of people management within companies and organizations, as well
as that of managing inter-personal relationships. Both of these processes are important for
ensuring business growth and success.
HR department carries out following functions:
Functions of HR Department

Recruitment of employees
Training for new and existing employees
Performance evaluation
Handling labour problems
Transfer and promotion
Administrative functions

The department is lead by Head-HR & Administration. Three Managers take care of Training,
HR and Administration functions of the department. Each Manager has Superintendants to
assist them. The Training Manager is responsible for the training and development of new
and existing employees whereas the HR Manager is responsible for recruitment of new
employees, performance analysis, promotion, etc. The Administration Manager looks after
the administration of the company and maintains relationship with Government
Departments..
Recruitment and selection
Recruitment of employees is the right and responsibility of the Management. They have the
authority to select the best talent available. Other thing being equal, local labor should be
given preference. Merit and suitability are the main consideration for employment.
Employees at operator or superintendant level are recruited by the corresponding department
head, with the prior knowledge of the management. Office staff, assistant managers and
managers are recruited by the HR Department with the consent of management. The
recruitment of higher officials, i.e. senior managers, department heads, etc. are done by the
Management and HR Department.
No one should be hired without a requisition from the department head, duly authorized by
the management, advising the type and number of employees and date on which they are
required. If required, pre-employment verification, background checks/investigations must be
done for prospective employees.

Training Measures
Training about new processes and latest technologies are provided to the employees by a one
day training program every month for all the employees of Synthite without compromising
the production and functions of the unit. The training schedule is prepared by the training
section of HR Department and the Production Planning Department.
New recruits are given one month training by the training department which include
classroom training and training under their respective areas of work.
For the purpose of training and development, Synthite has established the Synthite Centre for
Learning and Development (SCLD), which aims to provide top quality training to the

employees. The SCLD is provided with training hall with latest audio visual equipments, a
well stocked library, reading room and internet connectivity.
Performance Appraisal
After recruiting required employees, HR department has to review their performance on
regular basis through proper performance appraisals. Performance appraisal focuses on
measuring and improving the actual performance of the employee and also the future
potential of employee. Its aim is to measure what an employee does. On the basis of
performance appraisal HR Department can set up an action plan for ach employees.
Promotional Policies
The promotion for the employees is strictly based on performance and experience. An
employee is promoted to next level only if the employee has experience required along with
performance exceeding expectations.
Synthite follows job banding philosophy. The operator level employees form the lower band,
managerial staff forms the middle bands, and Department Heads forms the upper most band.
Each band has its own requirements of education, experience and performance and has
predefined salary range. Every band has three levels and entry level staffs come under the
lowest level. To get a promotion to the next level, an employee must fulfil the requirement of
experience and performance. After getting to the top level of a particular band, he/she has to
undergo special training programs along with experience and performance to get promoted to
next band.
The promotional policy followed by Synthite ensures that right people do right jobs.
Employee welfare and motivation
Happy employees mean a healthy organization. HR department conducts various employee
welfare activities which might include employees get together, annual staff parties etc.HR
Department also reviews organizational polices and its impact on motivation of the
employees.
Addressing employees grievances
HR department is the link between the workers and the management. Employees grievances
related work environment are usually entertained and resolved by the HR department.
Labour management relations

For the smooth operation of any organization, it is crucial to have good labor management
relations. HR department has to ensure that these relations are cordial. In case of any labor
management conflict the HR department will play a vital role in bringing both management
parties to the negotiation table and resolving the issue.
Implementing organizational policies
HR department is also concerned with the line manger and see that the organizational policies
are being implemented in a proper manner. Disciplinary actions can be initiated against
employees who are not following organizational rules and regulations. All these actions are
conceived and implemented by HR department.
Dismissal and redundancy
HR department has to take firm actions against employees who are not following the
organizational code of conduct, rules and regulations. This can result in the dismissal of the
employee. Sometimes, an organization may no more require the service of an employee. The
employee may be redundant. HR department has to see that organizational and government
regulations are being followed in this process.
Synthite has well structured and efficient HR department, which plays a major role in the
excellent performance in the company and overall successful administration of the
organization. The HR department in Synthite is very keen in selecting, training and
motivating their employees.

HRD MEASURES
HRD measures are carried out for the enhancement of employees of the company and to
promote morale of workers.
Staff Dining Facility: A full-fledged dining facility is open to Synthite employees on
payment of a nominal amount. All meals are served in the dining room. The canteen is run by
Canteen Management Committee formed by the employees themselves.
Staff Accommodation: Accommodation with recreational facilities is provided for outstation
staffs, close to Synthites premises.

Employee Engagement Programs: Every month, all employees of the unit come together
for a program named Tea at three and spent time together. This promotes the relationship
between the employees of Synthite. Grievance forums are conducted quarterly in a year to
present and solve problems and grievances of the employees. Also, a cultural and sports meet
for employees is conducted every year, without hindering the working of the production unit.

LOGISTICS DEPARTMENT
HOD

Documentation

Product Handling

Customs & Port

Manager
(Exports)

Manager
(Imports)

Assistant
Manager

Manager
(Exports)

Manager
(Imports)

Junior
Manager

Junior
Manager

Store
Keeper

Junior
Executive

Junior
Executive

Junior
Executive

Junior
Executive

Office
Assistant

Office
Assistant

Superintendent

Office
Assistant

Superintendent

Assistant
Grade 1

Assistant
Grade 1

Helper

Helper

Helper

LOGISTICS DEPARTMENT
The logistics department of Synthite handles the entire international and local logistic
requirement for international orders. This department is a supporting function to the
international marketing department. The domestic logistic is a separate function that handled
by the domestic wing of Synthite but the transportation of all goods from Synthite is out
sourced to different companies, Synthite works with multiple companies to ensure that the
company does not solely depend on a single enterprise to fulfill all the logistics requirements
of the company.
The logistic department handles:
All ore-shipment or post shipment documentation
Product handling
Port handles
International ware house facilities
Synthite industries maintain ware houses outside India. The company has the facilities at:

Dubai-Caters to multiple customers in Middle East segment.

United States Caters to American and Mexican customers.
Germany Caters to a single customer in Germany.
Amsterdam-Caters to multiple customers in the European market.

These ware houses are controlled from the Synthite haed office in kadayiruppu, India. The
movement of goods through these warehouses is done by logistics department. During
transference of goods from India to the international ware houses, the logistics department
ensures that the goods that are removed from stockade not made available for sale until it has
reached its port for destination.

MARKETING DEPARTMENT

AGM

Key
Accounts
Manager

Manager
Marketing
Services

Delivery &
Scheduling

Marketing
Coordinato
r

Assistant
Manager

Assistant Delivery &

Scheduling

Manager
Regional Sales &
Development

Office
Assistant
Grade 2 A

Assistant
Manager

Assistant
Manager

Management Trainees

BDM

MARKETING DEPARTMENT
Synthite has the major market in the US, UK, MEXICO and other European countries, but
they are also trading with Japan and Asian countries. The international market constitutes
70% of Synthite annual revenue, Synthite control 30% market share in the global market of
Oleoresin. The international market constitutes the volume sales of Synthite , but domestic
market is the dynamic and the upcoming market with a huge potential.
In Synthite the marketing has been divided into two sectors:
International sales & marketing
Indian sales & marketing
International sales & marketing
The international sales & marketing department caters to the requirement of over 400 global
customer spread over 70 countries. It is headed by AGM (sales & marketing), it is divided
into two functions sales and marketing services. Sales and marketing comprises 5 sectors of
division consist of the following category of managers.

Key accounts manager

Regional marketing manager
Business development manager
Area management

Sector 1
It consists of 8 major multinational customers and operators on yearly contract which are
renewed every season.
Sector 2
Geographic regions such as Western Europe and North America as well as few major
accounts come under this sector. It has the largest number of customers.
Sector 3
Africa and Middle East together make up this sector. We view these emerging markets of the
developed world as integral to business development.

Sector 4
This sector has customers drawn from 19 countries from the Baltic region and the American
continent.
Sector 5
This sector focuses on Asia Pacific region which is an important for Synthite.
Marketing Functions
Demand generation
Communication
Attending exhibitions and trade fairs
Sales activities like creating and retaining customers, samples, booking orders.
Marketing services
The marketing department must act as a guide and lead the companys other departments in
developing, producing, fulfilling and servicing products or services for their customers. The
marketing department typically has a better understanding of the market and customer needs,
but should not independently of the product development or customer service.
Synthite is a company that does not have direct connection with customers like Nestle etc, but
have connection through flavor houses that caters to these customers. The flavor house has
greater presence in foreign countries close proximity to the buyers thus knowing a great
dealing of the requirement. This particular segment is very lucrative and enjoys a high
margin. Synthite is not in positions to enter this segment without risks. Sales through flavor
houses constitutes to 40% of the companies international revenue and the rest 60% is through
distributors.
The international market split up in to, Latin-America and Middle East and US, Asia key
accounts. These are handled individually as different segments; the international marketing
customer support department provides all required paper work and act as a support function
for all international activities of this department. All SAP activities and co ordination between
planning, logistics, PF etc. To provide ETD (estimated time for departure) for the product etc.
are provided by the sections once order are placed, this department either provides all

informations regarding the status of the order to customers, either directly or via sales
person.
Another function of marketing department is exploring opportunities in new markets for
Synthite products. The most effective method of developing the business is through
exhibition. This is part of department promotes brand development and public relation
activities of the company.
Indian market
It has subdivided into 3 sectors wiz;
Sector 1
It includes following geographic markets like Karnataka, Maharastra, Gujarat,Goa,Madhya
Pradesh.
Sector 2
It includes the regions of West Bengal and Madhya Pradesh.
Sector 3
It includes the following regions Delhi, Tamilnadu, Utter Pradesh, Kerala, Punjab and
Himachal Pradesh.

IT DEPARTMENT

Head
IT Department

Hardware

Network

Technician

Technician

INFORMATION SYSTEM DEPARTMNET

Information system department is required for maintaining the continuous communications
within the company. This department manages the system related problems in the company.
The main function of IS department is to manage the SAP systems. SAP is a leading ERP
software package. SAP integrates the corporate world wide functions tightly into an
application.
Synthite groups IT requirements are overseen by its central IT department. Synthite views
information technology as the key driver of its business and has invested in enterprise wide
integration. This firm runs on SAP ERP, giving it the ability to adapt quickly and cost
effectively to changing the business, market and industry requirements.
All computer hardware is provided to each group is managed centrally by the IT department.
Introduction of new programme passes through 3 stages;
Development
Quality
Production
This programme is first developed and is in the developing stages, where any modification
can be made without affecting the system. After it passes that, it goes through quality where

the programme is assessed and any additional problems are resolved. On approval from these
stages it enters into the production stage; this is the live system or centralized system where
the company activities are done. An introduction of a new programme rigoursly assessed
before put into the production. If there is any SAP problem arises the IT department is
contacted and the core team members are assigned to various departments. All problems are
sending to the core team member. They work to resolve the situation and if any problem
arises, then it is outsourced to a partner agency that has access to the same system via VPN
(Virtual Private Networking) and provides a solution.
All function of Synthite industries except the HR function and the engineering functions are
done under SAP. But the department supports and provides solution to all technical problems
of the company. Other divisions such as realty and hospitality works on their own systems,
during the month end all these are loaded into the SAP to provide various reports of Synthite
as group.

QUALITY CONTROL DEPARTMENT

AGM

Manager

In Process Analysis,
Micro Biology, Raw
Material Analysis

Documentation,
Maintenance,

Final Product Analysis,

Oil Residue Analysis,
Pesticide Residue

Assistant Manager

Executive

Assistant Manager

Executive

Senior Chemist

Senior Chemist

Chemist

Senior Chemist

Chemist
Grade 1

Chemist
Grade 2

Chemist
Grade 2

Executive

Chemist
Grade 1

Chemist
Grade 2

Chemist
Grade 2

Chemist
Grade 2

Chemist
Grade 2

QUALITY CONTROL DEPARTMENT

During different stages of production, there are various quality controls checks. A sample is
sent to quality control for analysis. During each stage the following parameters are checked.

Extraction
Quality
Powder form
Product content is spend
Others
Evaporation stage
Concentration
Clarity
Others
Desolventalization
Residue solvent
Moisture content
Others

Functions of QC Department
Collection and analysis of raw materials, in process samples and finished products on
a daily basis.
Analysis and maintenance of quality of chemicals and solvents used for each process
in a fixed time interval.
Reporting analytical data to authorities and to keep all the records and documents of
analysis.
Coordination with Production Department to provide suggestions to improve the
quality of products.
Maintenance of analytical equipments and QA/QC Lab.
Prepare mixing and homogenizing data for the production department.

RESEARCH & DEVELOPMENT

Manager R & D

Senior Scientist

Assistant Manager

Senior Chemist

Analyst

Plant
Superintendent

Chemist

Helper

Operator

Operator

Operator

RESEARCH AND DEVELOPMENT DEPARTMERNT

R&D department is an investment in the companys future. Companies that do not spend
sufficiently in this phase are often said to be eating the seed corn ie, when their current
product line become outdated and overtaken by competitors, they will not have viable
successors in the pipe line. How much is reasonable to be spending on research and
development is highly dependent both on technology area and how fast the market is moving.
It might be enough to spend 2% on company revenue, in a fairly sedate market, but to keep
up in rapidly changing markets; companies should expect to spend 15% or more, just to keep
up with the rest of the pack

New product research

Before a new product is developed, R&D department conducts a thorough study to support
the project. The research phase includes determining product specifications, production costs
and a production time line. The research is also likely to include an evaluation of the need for
the product before the design begins to ensure it is a functional product that customers want
to use.
New product development
The research paves way for the product development phase. This is the time when the new
product is actually developed based on the requirements and ideas created on the research
phase. The developed product must meet the product guidelines and any regulatory
specifications.
Existing Product Updates
Existing products of the company also fall under the scope of R&D department. The
department regularly evaluates the products offered by the company to ensure they are still
functional. Potential changes or upgrades are considered. In some cases, the R&D department
is asked to resolve a problem with an existing product that malfunctions or to find a new
solution if the manufacturing process needs a change.
Quality checks
Quality check allows team members to ensure the products meet those standards so the
company puts out quality products. The quality assurance team of the company may
collaborate with R&D on quality checks.
Duties and tasks
R&D department managers may perform the following tasks:

Direct the development of R&D strategies, policies and plans,

Lead major research projects and coordinate the activities of other research workers,
Keeps an eye on the costs and access the benefits of R&D activities,
Publish results of significant research projects,
Provide advice on R&D options available to organization.

FINANCE DEPARTMENT

DIRECTOR

GENERAL
MANAGER

DEPUTY
GENERAL
MANAGER

Sr. Manager
(Accounts)

Manager
(Costing)

Manager
(Banking &
Forex)

Assistant
Manager

Office
Assistant

Manager
(Treasury)

Manager
Office
Assistant

Assistant
Manager

Assistant
Manager

FINANCE DEPARTMENT

Assistant
Manager

Junior
Manager
(Internal
Audit)

Assistant
Manager

Finance department is considered as one of the important department of the organization.

Finance manager is responsible for providing financial advice and support to clients and
colleagues to enable them to make sound business decisions. Financial considerations are the
root of all major business decisions. Clear budgetary planning is essential for both long and
short term actions. In addition, care must to be taken to ensure that financial practices are in
line with all statutory legislations and regulations.
Various activities of finance department are:

Providing and interpreting financial information

Monitoring and interpreting cash flows and predicting future trends
Analyzing changes and advising accordingly
Formulating strategic and long term business plans
Researching and reporting on factors influencing business performance
Developing financial management mechanisms that minimize financial risk
Conducting reviews and evaluations for cost reduction opportunities
Managing a companys financial accounting, monitoring and reporting systems
Developing healthy relationships with auditors, bankers, solicitors etc
Managing and supervising staffs
Managing budgets

Valuation of various items

i.

ii.

Fixed assets
Fixed assets are started as cost less depreciation
Depreciation is charged on straight line method, the rate is prescribed in
schedule XIV of Company act, 1956
Investments
Investments are valued at cost
Fall in value of investment other than the temporary nature is provided for

iii.

each material.
Inventories
Raw materials, consumables and work in progress are valued at cost or net

iv.

realized value, which is lower. Stores and spares are valued at cost.
Basis of preparation of financial statements
The financial statements are prepared under the historical cost convention on
accrual basis of accounting and in accordance with policies generally accepted

v.
vi.

in India.
Revenue recognition
Sales are net rebate and discount and include excise duty and sales tax.
Employee benefits / retirement benefits

 Leave encashment benefit is accounted on the basis that such benefits are
payable to employees at the end of one year.
Gratuity provision is made based on actuarial valuation.
Provident fund contribution is as per the rate prescribed by the related act.
Accounts
Accounts section keeps the record of all financial activities of the company. Routine
accounting functions like sales tax payments, receipts and payment of cash, cheques, etc.
comes under the preview of the account section. The section is headed by Senior Dy.
Manager under whom there are three Managers and a Dy. Manager and Account Assistants to
look after the accounts. The Senior Dy. Manager comes under DGM of Finance Department.
Costing
Costing section is responsible for planning and forecasting the financial operations of the
company. The section consists of Assistants who are headed by an Asst. Manager who is
answerable to the DGM.
Treasury
Treasury is responsible for disbursement of cash for different purposes. The main functions of
treasury are disbursement of salary, allowances, etc. The section is headed by Treasury
Manager who comes under DGM of Finance Department. There are two assistants for smooth
functioning of Treasury.
Banking and Forex
Banking and Forex section looks after the investment activities of the company. Manager of
Banking and Forex comes under the DGM of Finance Department.

MATERIALS DEPARTMENT

Deputy
General Manager

Manager

Assistant Manager

Junior Manager

Superintendent

Workers

The Materials Department procures agri-based raw materials grown in India and abroad. The
raw material procured are chilly, pepper, turmeric, mace, cardamom, ginger, seed species like
cumin and fennel, fenugreek herbs like Basil, Sage, Thyme, Laurel, oreganum, green spices,
coffee and tea. Depending on the volume of business, forecast by the sales team, the planning
department estimates the material requirement, taking into account the existing stock of raw
materials, semi-finished goods and finished goods. Based on the review, the purchase
quantity is fixed and purchase process is initiated.
Once the price negotiations are approved, a sample is sent by the supplier for QC checks. If
the sample meets the standards, purchase orders are prepared by the raw materials
department. On the approval of purchase orders, the dispatch is scheduled and finance team is
notified for import permit and advance licence procurement. On receiving the raw materials,
a sample is taken once again for QC checks. The Materials Departments sanctions the
payment on the basis of QC check results.
On arrival at the port, the raw material is cleared by the logistics department using the
processed documents. It is cleared through advanced licence through payment of duty. Once
cleared, it is either moved to Synthites warehouse or the bonded warehouse. After the

processing of raw materials, the materials department makes sure that the finished products
are ready to dispatch within the stipulated date.
Another major area of interest of Material Department is Farm Tech. It is a proactive
initiative to guarantee complete traceability of raw materials through backward integration,
enduring organic, pesticide restricted and aflatoxin-free products to its global customers.
Farm tech works closely with local farmers and provides them full education and support.
Farm tech maintains the farmer data and follows a coding system for their produce. This
allows us to extend our control over the quality of the raw materials.
The Integrated Pest Management (IPM) program is another area of activity where Materials
Department is involved. It is the cultivation of raw materials under highly restricted usage of
pesticides. This is done to meet the requirements of specific customers who order raw
materials with pesticide residues within the norms of EU and USFDA. To meet this
requirement, contract farming is done and is monitored from sawing till harvesting. After
harvest, samples are taken from each lot and is analysed for pesticide residue. Lots within
acceptable limits are procured for production.
Functions of Material Department

To provide raw materials for production.

To ensure the quality of raw materials
To ensure effective storing of goods.
Effective inventory control.
To make sure finished goods are dispatched in time.

ENGINEERING DEPARTMENT

AGM

Manager

Boiler
Supervisor

Water &
ETP
Supervisor

Manager

Vehicle
Maintenance
Supervisor

Electrical
Supervisor

Civil &
Workshop
Supervisor

Operator

Operator

Mechanic

Helper

Plumber

Helper

Electrician
& AC
Mechanics

Masons
& Fitters

The main function of Engineering Department is to manage utilities like electricity, water,
chilled water, steam, air, vacuum, etc. required for processing, laboratory and other systems.
Other functions of the department include design, installation and maintenance of
equipments, up-gradation of existing plants, designing and commissioning new plants
according to the production requirements, maintenance of company vehicles, construction of
new buildings, fulfillment of statutory regulations of Government departments, etc.
Various sections in Engineering Department are:

Electrical
Boilers
Water and Waste Water (ETP)
Civil & Fabrication Workshop
Air Conditioning and Chilled Water
Electronics and Instrumentation
Vehicle Maintenance
Weights and measurements

CHAPTER 4

SWOT ANALYSIS &

CONCLUSION

SWOT ANALYSIS
STRENGTH
The greatest strength of Synthite lies in the wide range of products that it manufactures
without compromising on its quality. This is made possible with the sophisticated technology
and state of art facilities the company maintains to produce its products. This, coupled with
the technical expertise of the research and development and innovations department, the
former developing entirely new products whereas the latter customizing products to suit the
target samples it receives has enabled Synthite to become the market leader in the spice oils
and oleoresins category. Being regarded as trustworthy and preferred suppliers who can be
relied upon by the customers is a great competitive advantage.
The major strengths of the company are:

WEAKNESS

Brand stability in the market

Quality extracts
Experienced and motivated work force
Environment friendly function
Latest technology
Careful selection of raw materials
Adequate finance resources

Less differentiation among products of the various companies competing for market share
in the same category makes the competition more intense. Lack of availability of information
about the applications and uses the customers find with the products of Synthite, leaves the
company with less scope for a proactive measures such as developing products to meet the
unstated needs of the final customers. This can be attributed to the highly competitive nature
of the industry and limited interaction with the final customers.

No direct contact with final customers

High operational cost
Unable to meet the demand due to production capacity
Shortage of manpower with key skills
Climatic changes will affect the availability of raw material
The size of regional market is small

OPPORTUNITIES
As the natural colours, flavours and other products are gaining importance and demand for
Synthite substitutes declining due to the growing number of health conscious people,
opportunities are at plenty and future bright for Synthite which is well established and created
space for itself in the industry. With the food industry booming, flavour & ingredients houses
flourishing, the demand for its products is only going to increase in future. There may also be
certain unstated needs or those that the customers are unaware about it.
Some of the important opportunities are
Product Diversification.
Production of Powdered Spices.
Canned food ingredients and flavors for consumer market.
THREATS
Emergence of a competitor offering products at lower costs can reduce the market share
currently being enjoyed by the company as customers in the most of the regions are price
sensitive. This is possible by either sourcing raw materials at cheaper rates or manufacturing
natural/nature identical products having similar properties and passing on cost advantage to
the customers. Players both global and local who can provide product to meet the exact
application of the customers also give tough competition to the company. Rapid technological
development can lead to fast obsolescence of existing technology. Hoarding of raw materials
by suppliers increases uncertainty and cause prices to shoot up.
Major threats to the company are given below:
Other competitors offering products at lower costs
Fluctuations in the exchange rate

 Economic policies may affect the business

Adverse shift in trade policies of foreign government
Drastic change in climatic conditions

OBSERVATIONS
Synthite Industries Ltd is the leading exporter of spice products.
Synthite industries ensure international quality in providing materials which meet
international standards.
The training and development given by the company makes the employees best in
industry.
The Company has an effective financial management system which keeps the
company in a good financial position.

CONCLUSION
The study is conducted at Synthite Industries, one of the worlds largest manufacturers and
exporter of Spice oleoresins and essential oils. It supplies ingredients to the major food,
fragrance and flavor houses.
The business of the Synthite group has been diversified into Bio-ingredients, spices, farm
tech, hospitality and realty. Synthite is the market leader in spice oleoresins for the past three
decades, having around 50% of exports from India. Synthite group supplies quality stuff
which meet international standards and to satisfy its customer requirements by its strict
quality control and customer oriented management style.
Synthites strength lies in its commitment to delivering real value to its customers through
quality products and cost effective processes. It maintains a cordial relationship between all
departments among the organization. All the departments in the company are working
together for the success for the company.
This report was a general study regarding the organization, all the departments and functions
of Synthite industries Ltd. The study provided useful insight into the company & its
functioning. The experience of the study was useful in gaining first hand information about a
manufacturing organization and how it functions. This study helped me to understand how
Synthite become the leading brand and largest exporter of spice powders in India and all
over the world.