CHAPTER-1

INTRODUCTION

1.1 GENERAL INTRODUCTION

The ultimate aim of an Organization study is understanding company in detail. As it sounds,
the task to understand a company from top to bottom is not that easy as we think in the initial
look. Organizational study refers to understanding the various functions that are being carried
out in the organization. It is connected with four aspects such as knowledge acquisition,
information distribution, information interpretation and managing the organization by using
the right information. Organizational study, comprise of the ordered study and careful
application of knowledge about how people act within organizations. Organizational study
includes the following disciplines: industrial and organizational psychology, organizational
behaviour, human resources and management.
Its proven that a person can be productive if and only if he has the right knowledge about the
organization he works in, its vision &mission, policies, norms, strategies, culture etc are to
be well understood. This signifies the relevance of an organization study in this highly
competitive world scenario. The major objective of the study is to understand about various
department functions during a particular period and the concept of organization. It also
enables us to explore issues and problems in an organization, give suggestions to sort these
issues that would help the future managers to face the challenges ahead. It also helps us to
enhance the working methodologies to the further extent
The structure is very important for its proper functioning and growth. Organization as a
structure refers to the network of relationships among individuals and position in an
organization. Organization structure is the structured frame work within which the efforts of
different people are coordinated related to each other.
The pace of day to day transformations in the field of science and technology have brought
many changes in the organizational system. Such changes helps to facilitate the achievement
of the basic objective of the firm.
This organization study at KLF Nirmal Industries (P) Ltd is to know about the organization
departments, functions of each department and to understand how the different departments
are working towards the achievement of the organizational goal.

1.2 OBJECTIVE OF THE STUDY

The organizational study was done at KLF Nirmal industries (P) Ltd to achieve the following
objectives

1.2.1 PRIMARY OBJECTIVE

1) To study in detail the overall functioning of KLF Nirmal industries (P) Ltd.
2) To analyse the departmental functions of KLF Nirmal industries (P) Ltd.

1.2.2 SECONDARY OBJECTIVE

1) To interact with managers at different levels and to grab the information about their
responsibilities and routine activities.
2) To observe workers at their working places and to interact with them.
3) To observe the work culture existing in the organization.
4) To compare and contrast theoretical knowledge with actual practice.
5) Getting practical experience regarding the organizational functioning.
6) To identify the future plans of the company.

1.3 METHODOLOGY
1.3.1 Primary Data Collection
Interview with different managers, departmental heads, staff etc.
Direct observation
Interaction with the employees

1.3.2 Secondary Data Collection

Official website of KLF Nirmal Industries (P) Ltd
Company manuals including memorandum of association

1.4 SCOPE OF THE STUDY

3

There is a good scope in KLF Nirmal industries (P) Ltd for organizational study. It ultimately
contains five most essential departments including HR, Finance, Marketing, Stores&
purchase, production departments etc. The organizational structure and working conditions in
KLF Nirmal industries (P) Ltd really helps an aspirant researcher to understand how a
relatively big organization is functioning. It is a private sector organization which will help to
observe how effectively the management is managing the company very well with efficient
utilization of the available resources. So the direct exposure will help the researcher to have a
positive impact on the overall productivity of the company

1.5 REASON FOR SELECTING THE COMPANY

The Nirmal Industries (P) Ltd is a company which is known for its quality for their coconut
oil products and they are still leading in the topper position when we consider southern
market and north eastern market of India the home country especially in Kerala. They are
also succeeded in the foreign markets including gulf countries. KLF Nirmal Industries (P) Ltd
is always been keen in diversifying their plant by installing the most elegant machineries of
its kind available in the world and its visible and experienced on the time of the plant visit. I
am proud to introduce this company for the organization study of our MBA programme.

1.6 LIMITATION OF THE STUDY

1. The busy schedule of running the company as usually seen in every organization.
2. During our study, the core process of crushing copra was being carried out since it occurs
once or twice in a month
3. Some policy related difficulties were there in revealing some data for the sake of
confidentiality

CHAPTER-2

INDUSTRY PROFILE

2.1 INTRODUCTION

Coconut palms are grown widely in the coastal tracts of the country. Copra, the dried kernel
is the chief commercial product from coconut, which is mainly used for oil extraction. Copra
normally has an oil content varying from 65 to 72 per cent.
Coconut production constitutes one of the four major sectors of Philippine, the second largest
country to cultivate most of the coconut trees. About 85% of coconut production is exported
in the form of copra, coconut oil and desiccated coconut.
In the last century, coconut oil became one of the preferred sources of plant fats for food
manufacturers in North America because of its taste, texture, and stability. In the 1940s,
vegetable oils and seed oils from corn, soybeans, and cottonseeds started replacing coconut
oil because of the diet-heart hypothesis of Ancel Keys, PhD, which stated that saturated fat
contributes to the development of heart diseases.3 This hypothesis, along with the nutritional
guidelines encouraging Americans to adopt low-fat diets, unfortunately made coconut oil
disappear from our plates for many decades.

2.2 WORLD SCENARIO

Coconut is a popular plantation and is grown in more than 90 countries worldwide. Though it
is quite difficult to establish a coconut plantation but once it is done, it proves to be quite
beneficial as coconut is harvested throughout the year. The world production of coconut sums
up to around 55 million tonnes annually. Indonesia and Philippines are the major producers of
coconut fruits in the world. The top two countries in the list are serious competitors for the
first position. But in the last few years, production in Philippines has been declining
gradually.
Ayurvedic medicine texts written in Sanskrit about 4,000 years ago report the health benefits
of coconut oil. Filipino people call the coconut palm tree (cocosnucifera L)which grows
mostly in Indonesia, the Philippines, India, and other Southeast Asian countriesthe tree of
life because of its highly valued and respected source of plant-based fats that have been used
both as an energy-dense food and as folk medicine. Each mature and productive tree between
the ages of 6 and 10 years, and until it reaches between the ages of 80 and 120, can yield 12
to 16 bunches of coconuts yearly, each holding eight to 10 coconuts.1 Despite its name, the
coconut isnt a nut but rather a drupe like olives, mangoes, and dates.
6

When the world scenario is taken into account, it is evident that the international price of
coconut oil is slightly less when compared to the domestic market, But the business survives
in the world market since the demand prevails because of the presence of Indians mainly in
foreign countries. The oil is not only used for the cooking purpose, but also for making soaps,
surface active detergents and also the cakes are used for cattle feeds too.
Following is the list of Top 5 Countries Producing Coconut Oil as per US, Department of
Agriculture

Coconut

% of

Production 2013

World

(metric tonnes)

Total

Indonesia

18,000,000 m/t

30.0%

Philippines

15,862,386 m/t

26.4%

India

10,560,000 m/t

17.0%

Brazil

2,888,532 m/t

4.8%

Sri Lanka

2,000,000 m/t

3.3%

Country

Fig 2.1:- Top 5 Countries Producing Coconut Oil

World exports of coconut oil in 2012 was 1822 million MT (2 million t) compared to only
0.160 MT (0.176 t) of copra exported. Desiccated coconut production is dominated by the
Philippines, Sri Lanka, and Indonesia. Pacific island states suffer the disadvantage of being
small, isolated producers far from the major markets in Europe and

2.3 INDIAN SCENARIO

USA.

Coconut oil is an important cooking medium in Southern parts of the country especially in
Kerala State. Besides, the oil has varied industrial applications. It is used in the manufacture
of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, cosmetics, etc.
It is used throughout the country as hair oil as it helps growth of the hair. As massage oil it
has a cooling effect on the body. Owing to these qualities coconut oil has a potential market
in the country. Since the price of coconut oil in the international market is very much lower
than the domestic price, the quality and attractiveness of consumer packs are important
factors to compete in the world market. While the demand for coconut oil for cooking
purpose would be elastic whereas Coconut oils demand for hair and cosmetic applications is
inelastic.
For the extraction of oil from copra the common method still prevailing in our country is by
using rotary chucks. But the efficient system of extraction of oil is by the use of expellers.
Coconut or the "tree of life," in tropical climates is a way of life for millions of people all
around the globe. Coconut is a versatile product and has multiple uses. Almost all the parts of
a freshly grown coconut, eatable or otherwise, are used in some or the other manner. India is
one of the leading coconut producers in the world, producing 13 billion nuts per annum. India
accounts for nearly 20% of global coconut output.
Coconut is a popular plantation and is grown almost in all major states of the country i.e., in
Andhra Pradesh, Assam ,Kerala ,Goa, Karnataka ,Orissa ,Tamil Nadu ,Tripura ,West
Bengal ,Maharashtra , Andaman and Nicobar Islands, Lakshadweep and Pondicherry. The
Coconut Development Board has chalked out an ambitious plan for re-plantation of the crop
and expansion of the area in non-traditional producing states. The objective of the programme
is to achieve a level of annual production of 15 billion nuts by 2012.
Coconut processing add value, and a number of products like Coconut Oil, Desiccated
Coconut, Coir fibre, Pith, Mattresses, Desiccated Coconut (DC), Coconut Cream, Coconut
Milk, Spray Dried Coconut Milk Powder, Coconut Shell Products, Shell Charcoal, Shell
Powder, Virgin Coconut Oil are obtained. In India, almost the entire production goes for
internal consumption in the following pattern: about 47% for edible purpose, 28% for
coconut oil, 11% for tender nut and 6% for edible copra. Global export of coconut products
exceeds $1.2 billion annually. The growing market for all coconut products is waking up even
in the USA and Europe, countries which have never used coconut in their cuisine. The major
portion of coconut produced in the country is used for extraction of oil .India has unbeatable
8

quality advantage in coconut oil sector. Refined coconut oil is also manufactured in the
country for industrial uses. Refined coconut oil is mainly used in the manufacture of biscuits,
chocolates and other confectionery items, ice cream, pharmaceutical products and costly
paints. Generally, filtered coconut oil is used for cooking and toiletry purposes. The demand
for coconut oil increases 15-20 % during the festival season. Coconut oil for edible purposes
is now being claimed to be the second best edible oil in the world, after Olive oil.
Coconut Shell charcoal is most widely used as domestic and industrial fuel.

CHAPTER-3

COMPANY PROFILE

3.1COMPANY PROFILE OF KLF NIRMAL INDUSTRIES (P) LTD

KLF Nirmal industries (P) Ltd is a premium offering from the house of KLF founded by the
late visionary businessman Mr. K.L Francis has a presence of more than 60 years in the
coconut oil industry. Today it stands for an assurance in purity and health not only to the
millions of consumers in India. But also to its customers in the Middle East, USA and
Europe.

3.1.1 KLFs Vision

10

Our Vision is to be the No.1 producer of premium quality Coconut Oil in the country, to be
the one brand that consumers across the world identify and recognize to be the best in its
category.

3.1.2 KLFs Mission

Our Mission is to produce Coconut Oils of the highest quality by adhering to international
standards and industry best practices, and by inculcating a work culture focused on
innovation and positive change.

3.1.3 Quality and Research

It is the quality of KLF products that has made the brand a household name in coconut oils.
KLFs commitment to quality covers every aspect of production from procuring of copra
through processing to packaging. KLF procures the finest coconuts directly from farmers,
which is then sun-dried in hygienic copra drying yards to retain its natural richness, flavour
and nutritional value. Strategically located purchasing centres across Kerala ensure steady
supply of high yielding copra. KLFs unique patented VSIC processing technology minimizes
moisture content, reducing the chances of the oil becoming stale, increasing its shelf life and
cutting down warm up time.
At KLF they believe in continuous improvement, and include a substantial amount in our
annual budgeting to research and development programs and to evolve new technologies to
enhance the quality of our products.

3.2 ORGANISATIONAL CHART OF NIRMAL INDUSTRIES (P) LTD.

11

Fig 3.1 :- Organizational Chart of Nirmal Industries Pvt Ltd

3.2.1 FUNCTIONAL DEPARTMENTS

12

The departmentalization helps in specialization of work in each field .It helps in better
planning and better concentration in the particular work handled by a particular department.
The various departments in KLF Nirmal industries (P) Ltd are as follows:
1. Human Resources Department
2. Production Department
3. Stores and Purchase Department
4. Finance Department
5. Marketing Department

3.4 THE INFRASTRUCTURE

KLF has two ultra-modern, fully automated manufacturing units. The first unit is located at
Irinjalakuda in Thrissur District of Kerala and the second one is at Perundurai in Tamil Nadu.

Process to Purity:-Well dried copra having minimum moisture content is thoroughly

cleaned of all extraneous matter and cut into small chips in a copra cutter. The chips are fed
into steam jacketed kettles and cooked mildly using KLFs patented Vaccumized Steam
Injected Cooking (VSIC) Technology. The cooked material is fed into expellers, and the oil
that is extracted passes through a four-stage filtration process to ensure that the end product is
crystal clear.
Packed to Perfection:-KLF products are available in convenient consumer packs of various
capacities. Hi-tech packing machines ensure leak-proof, tamper-proof packaging that helps
retain the aroma and flavour of the products and increase their shelf life. Installed in a
specially designed hygienic environment, these machines ensure zero contamination for the
entire product range.

3.5 VSIC Technology

13

VSIC Technology is a unique method of processing coconut oil that results in lower moisture
content, less chances of the oil becoming stale and increased product shelf life. Reduced
moisture content allows the oil to heat up faster while also minimizing the absorption of oil in
the food that is being prepared. This makes for a healthier table spread, besides contributing
to energy savings. VSIC Technology also ensures uniform cooking of food items, which in
turn enhances palatability.

14

CHAPTER-4

FUNCTIONAL DEPARTMENTS

4.1 HUMAN RESOURCE DEPARTMENT

15

4.1.1 STRUCTURE OF H.R DEPARTMENT

Administrative
Manager

HR Manager
&Liaison

Assistant HR
Manager
Liaison

HR Executive

Fig 4.1:- Structure of HR Department

HR department is one of the main departments of a production concern. Nirmal Industries (P)
Ltd is proudly proves us a fact that the real functionality doesnt rely upon the number of
executives and departmental infrastructure but the yieldable efforts done by the elegant
managers. As we can see, the company doesnt promise such a huge department for HR since
their workforce size did not demand for the same. The Human Resource Department deals
with management of people within the organization. There are a number of responsibilities
that come with this title. The key responsibilities are hiring members of staff; this will
involve attracting employees, keeping them in their positions and ensuring that they perform
to expectation. Besides, the Human Resource Department also clarifies goals, vision, mission,
making changes strategically etc. to the employees. It co-ordinates plans for future ventures
and objectives involving people in the Company.

16

Talking about the work culture exists in Nirmal Industries (P) Ltd, the working hours are
more stringent in nature that to complete the mandatory 8 hours and overtime is paid well.
Since majority of the employees are using the company accommodation in the company
premises itself, they dont find it hard to work till the task has completed. Mixed pool of
workers can be observed here, that is from various states of the country like West Bangal,
Gujarat, Kerala, and Tamilnadu etc.
Typically human resource management involves in determining an organizations need of
human resource, recruiting and selecting handpicked employees, who performs to their best,
developing counselling and rewarding employees. For that matter HR department used to
conduct employee assessment once in three months and the report is submitted to the board
meetings. This practice keeps a marginal standard in the working employees. For that matter
HR considers the following parameters
i.
ii.
iii.

Quality of work
Quantity of work
Dependency compliance of instructions, initiative, punctuality, attendance and sense

iv.
v.
vi.

of responsibility
Attitudes towards the company, superiors, job and fellow worker's co-operation
Training effectiveness
Overall assessment including quality awareness

By assessment of which a grade given in the range of A to E. Each items considers points
such as 2, 4, 6, 8, 10, and the aggregate points will determine the grade of the employee

E GRADE- Less than 60

D GRADE- 60-69
C GRADE- 70-79
B GRADE- 80-89
A GRADE 90-100

Each of the functions is necessary to some degree irrespective of nature and size of the
organization that is why in most of the organization a separate department is known as
personnel department or Human resource department is created for effective performance of
these functions. In Nirmal Industries (P) Ltd, HR department deals with following objectives.

Employees selection procedure

Induction and training
Remuneration and allowances of workers
Workers welfare activities
17

Workers safety measures

Grievance redressals
Leaves and retirements
Statutory liabilities
Other functions

4.1.2 FUNCTIONS OF HR DEPARTMENT

1 .Recruitment / SelectionPreparing advertisements etc. for the recruitment, scrutinize and shortlist the applications
received and send interview call letters/mails as required.
2. Training and development
Giving the induction and training to the newly joined employees and to the old ones if
required.
3. Compensation benefits
Compensation and benefits (abbreviated C&B) is a sub-discipline of human resources,
focused on employee compensation and benefits policy-making.
4. Performance Management System
Direct observation of job applicant behaviour. The performance of the employees is
periodically evaluated and according to that promotion, bonus etc. are provided.
5. Statutory Compliance Management
Statutory compliance means you are following the laws on a given issue.
6. Industrial Relation & Personal Management
It includes the Grievance handling.
7. Employee Relation
Having formal and informal counselling with employees and preparing event calendar of
monthly recreation to motivate the employees.

4.2PRODUCTION DEPARTMENT
4.2.1 Structure of Production Department
Production Manager
18

Assistant
manager (mill)

Assistant
manager (lab)

Fig 4.2:- Structure of Production department

4.2.2 About the plant

Entire company lies in 20 acres of land

Around 50 permanent employees and other daily wage contract workers

Machines are of high quality and imported by the company from America and
some other foreign countries

Some packing machines are from our own Chennai

4.2.3 About the raw material

Copra Is raw material from which oil is extracted

Three types of copra are being used

Organic
Local copra
conventional

4.2.4 Production aspects

Average quantity of copra brought in for production is 1000 tonnes/month

9.5 tones /load

195 bags in a load

10 loads of copra in average for a month and it fluctuates according to the

dispatch, demand and order

19

5stage
cooker

magnet
Screw conveyor
Loading area
cutter

Via Elevator
2stage
cooker Via screw conveyor

magnet

Expeller 2
Filtration
(4 stages)

Expander
Expeller 3

Fig 4.3 :- Production line diagram

4.2.5 Production: A brief idea

Copra is poured from the loading area after the sufficient tests and quality checks

The copra is primarily broken into a bit lighter pieces when its going through screw
conveyor

From loading point, copra comes to the cutter where the major crushing process
occurs

Then the crushed copras are directed towards two sets of cookers namely 5stage and
2stage cookers via elevators

The temperature inside cookers is maintained and regulated by stream line system
a separate boiling system is therefore dedicated to provide steam for cookers

The input temperature in the cooker is 85-87 degree Celsius

Output temperature is 90-95 degree Celsius

Heating is done in order to prevent microbial contamination

Then from cookers, the crushed and powdered copra goes into expander.
20

Input temperature inside the expander is 81 degree Celsius and output is 158 degree

The outputs from the expander are two, unclean oil and cakes of 35%oil content

These cakes are went into expellers2&3 for the finest extraction of the oil

Expellers gives the final by-product, the cakes which is distributed to cattle feed
companies and for solvent extraction

By some complex chemical processes, certain companies are extracting oil in further
from these byproducts and such oil is used in soaps.

From expellers the oil is getting into the phase of filtration which comprise of 4 stages

4.2.6 FILTRATION

Oil is filtered in filter1 and kept in unclean tank to sediment the heavier particles in
the oil

It rests up to 48hrs by the mean time the temperature lowers to 34-35 degree

Then it again filtered in filter 2 then the oil goes to centrifugal filtration where the
setup contains rotating chambers which will capture the lighter and microbial particles
too.

4.2.7 FILLING

The advanced technologies are adopted by the KLF in filling and packing the
products

From clean tank oil is pumped into service tank in the filling area via motor

It has the facility of auto flow control

This oil is rechecked in a device called liquid line metal detector to capture finer
particles if any.

The oil then stored in mini service tank

Via vacuum enabled pipes the oil is sucked upward to volumetric filling machines

21

The bottled oil in several quantities are passed through inkjet printer machine to label
the MFD, batch codes etc.

Then the bottle goes through shrink tunnel in which the logo and hallmarks are
labeled on the bottle

Then these bottle passes through another shrinker machines to make bottles grouped
of certain numbers for efficient packing in cartons

4.3 STORES AND PURCHASE DEPARTMENT

22

4.3.1 STRUCTURE OF STORES AND PURCHASE DEPARTMENT

Stores &Purchase
Manager

Assistant
Manager

Fig 4.4:-Structure of stores and purchase department

4.3.2INVENTORY STORAGE AND PURCHASE

KLF Nirmal Industries (P) Ltd has a capacity of 800 tonnes of inventory storage which is
smartly constructed to get rid of moisture and to keep away all kinds of contamination for the
matter of surveillance of quality aspects since copra is more delicate and susceptible for
contamination.

4.3.3FUNCTIONS OF PURCHASE DEPARTMENT

To keep a regular check with contracting brokers all over India and thus know the

market price.
Check whether the quantities of goods are correct or not.
Requisition
of Materials
Storing the goods inPurchase
appropriate
places for easy
retrieval and use.
To give order to buy the goods by raising the Purchasing Order.
To keep a feasible market to purchase.

Selection of Suppliers

Placing the Purchasing Order

Follow up the Order

The following diagram explains the procedure of purchase in KLF Nirmal Industries (P) Ltd

Receiving and Inspecting of Materials

23

Checking and Passing of Bill of Payment

Fig 4.5:-Purchase procedure

4.4 FINANCE DEPARTMENT

4.4.1 STRUCTURE OF FINANCE DEPARTMENT
24

Accounts Manager

Assistant Accounts Manager

Fig 4.6:-Structure of Finance Department

Finance is regarded as the life blood of the business .In modern money oriented company;
Finance is one of the basis foundations of all kinds of economic activities. It is the master
key, which provides access to the entire source for being employed in manufacturing and
merchandising activities.
Finance plays a key role in all the activities of business. It may be defined as the service of
money. It deals with the principles and of administrating it by those who control it. The
success of finance function depends on how finance function depends on how finance is
planned at the various levels of administration under the management.

4.4.2 SOURCE OF FINANCE IN KLF

The company makes use of three types of source to finance its activities, they are

Share capital
Reserves and Surplus
Loan Funds

4.4.3FUNCTIONS OF FINANCE DEPARTMENT

Maintain a good financial structure

Collection of cheque
Preparing the GRN(Goods Received Note)
General payment
Payment for local purchases.

25

4.4.4 FINANCIAL PERFORMANCE OF LAST YEAR

Nirmal industries (P) Ltd is a company having around 110 Cr turnovers during the last year
as a whole. The fixed assets of the company including the land and building, machineries
come around 10.08crores.

4.5 MARKETING DEPARTMENT

4.5.1 STRUCTURE OF MARKETING DEPARTMENT
VICE PRESIDENTMARKETING
26

PRO

AREA MANAGER

SALES
REPRESENTATIVES
Fig 4.7:-Structure of Marketing Department
The major aim Marketing department is to identify the market demand and supply the goods
as per the demand. The marketing wing is mainly located their head office in Bangalore and
have regional office in Irinjalakuda branch which mainly focuses the promotional activities,
to ensure the realization of adequate sales so that null stagnation of goods are achieved. The
Marketing department in KLF plays a key role in controlling the production by contributing
to the production planning.
4.2 MARKETING MIX
Talking about the product mix which comprise of product, price, place, promotion. KLF has
got different ranges of coconut oil products produced from their plants. They have pet
bottles and pouches of both 500ml and 1 litre quantities in the edible oil segment. The same
when exported, the difference is that the clear bottles are replaced with the non-transparent
bottles. Pricing strategy used for the products is the adsorption strategy which includes fixed
cost, variable cost, administering cost and advertisement cost as every manufacturing
company often follows.

27

Fig 4.8:- Exported bottles to USA, CANADA & GCC

Fig 4.9:-Product packs in Domestic Market

Fig 4.10:- PET bottles ranges from 15ml to 250 ml

28

Fig 4.11:-Milk products from KLF

Considering the place as a component the marketing mix, KLF has its network spreaded over
the major areas in south India, particularly in Kerala, Tamilnadu and the North Eastern
regions like upper Karnataka, Andhra-pradesh and Orissa and coming to foreign countries, it
has spreaded to all gulf countries, USA and Australia. Then considering the promotion as the
last component the company has the advertisements featuring the wide variety of products
under the brand called KLF coconad in which the Malayalam film actor Mr.Mohanlal has
performed.
The location of the customers is done through dealer's network. The regular contact is
maintained between sales managers to executives and field representatives. Order filling is
scheduled according to the marketing requirement and completed within a period of one
week the maximum. Advance payment is done for almost all the transaction occurring in the
company related to the production. Here they adopt on time management system for
monitoring the supply chains since the market fluctuations are more prone to happened.
Unseasonal businesses are compensated with additional promotional efforts.
Sales force structure for the company consists of the state wise regional managers and areawise sales representatives. Any issues from the side of the customers would be addressed in
the company itself and for security concerns; the inbuilt lab facility will be available
throughout the factory hours. Market intelligence and information systems are under
development for active sales promotions.

29

CHAPTER-5

SWOT ANALYSIS

30

5.1 STRENGTH
a) Higher concern for the quality aspects
b) Economic labor force and less trade union issues
c) Climatic advantage of Tamilnadu for drying up the copra without much of fungal
d)
e)
f)
g)
h)

exposure
Availability of local vendors and copra providers
Cheaper land value and plant erection charges when compared to other states
Large sized and highly sophisticated plant facilities
Well qualified and technically skilled manpower
Strong dealer network in all over India

5.2 WEAKNESS
a)
b)
c)
d)
e)

Lack of presence in North and Western states of India

Shrinked executive workforce
Lack of preventive techniques and mechanisms on machineries
Lack of information systems and IT enabled services like SAP systems
Strategic back lagging of advertisements in terms of its theme and message conveying
capacity

5.3 OPPORTUNITIES
a) To elaborate the business to the uncovered regions of India and the foreign countries
b) Scope of expansion is possible in the Perundurai plant since the land surrounding the
plant has owned by the company
c) More product lines and segments are to be brought in to the market to face the
competition from other companies
d) The upcoming project of Launching coconut powder products is a big opportunity
where the competition is not that tough in the present market scenario in north eastern
states
e) Steady increase in the demand provides the company for further expansion

5.4 THREATS
a) High competition with other companies especially in northern part of India
b) The fluctuations that happening to the cost of raw material and the unbearable
maintenance cost and replacement of the machineries

31

c) Less volume of production due to the inconvenience in storing the raw material
beyond a limit since its prone for contamination

32

CHAPTER-6

FINDINGS, SUGGESTIONS
&CONCLUSION

6.1 FINDINGS
a) Great concern for the quality of the product
b) Better plant facilities and machineries are made available in the plant premises
c) Labor and working conditions are favorable

33

d) Advanced storage of raw materials is not entertained since the freshness of the
material matters
e) Employee turnover rate is significantly less since the company intends to retain them
since the training is that much sensitive. It is more suited in the case of skilled
employees
f) Company has never focused in framing more efficient advertisement strategies. For
instance, the present advertisement though has succeeded in demonstrating new range
of products under the brand COCONAD, it doesnt prioritize to demonstrate to what
extent the company have taken the efforts to maintain the supreme quality
g) The enthusiasm shown by the board of directors to inspect the factory premises is a
positive factor in both aspects i.e.; employees and company
h) The Employee grievances are properly addressed In the company
i) Fluctuations in the oil prices have immensely increased the logistics costs and other
subsidiary costs.
j) Company believes in Employee empowerment, so rather than sticking to conventional
management theory, the management emphasizes on the practicability and provides
feasible work environment.
k) Proper residence and food are made available for the employees.
6.2 SUGGESTIONS
a) Informal discussions must be entertained between the managers and workers so that
new ideas may come up.
b) Employee appraisal must be given periodically so that they have valued properly in
the organization.
c) More involvement in CSR activities is desired for sustainable growth of the society
where the company resides in.
d) Presence in the social networking will fetch more business
e) Reputation management practices can be newly brought into the company
f) Since the financial position is sound, the further expansion scopes can be taken into
account since the demand prevails in the market
g) It is preferred to give emphasis to the Product diversification which is slightly lagging
in the present scenario
h) New advertisements shall be introduced
6.3 CONCLUSION
By this organizational study I could able to understand about the different departments and
its functioning in NIRMAL INDUSTRIS (P) LTD.I understand how the coconut oil is
being manufactured by keeping up all the quality standards. I have understood how a

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business is ethically bound to the society in various dimensions. Then I learnt about role and
significance coconut oil as a product in the market.
From the beginning of recruitment from the HR department, proceeding with production, till
the sales of product, its evident that how employees and workers are well organized and
controlled by the management team.
It has been a great opportunity and I am very thankful to each and every one who has helped
me. All the staffs in The NIRMAL INDUSTRIES (P) LTD. has positively contributed and
shared their valuable experience that helped me a lot in my organisational study.

BIBILIOGRAPHY
BOOKS:
1. Kothari C.R, Research Methodology Methods and Techniques, New Delhi:
New Age International Publishers, 2008.
2. Chabra T.N, Human Resource Management Concept and issues NewDelhi:
DhanpantRai & Co (P) Ltd., 2008.
3. Kotler Philip, Marketing Management- A South Asian Perspective, New Delhi:
Pearson Education, 2007.

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