CHAPTER 1

INTRODUCTION TO THE STUDY

INTRODUCTION TO THE STUDY

An organization is planned, co-ordinated and co-operated by a
group of individuals under the direction of executive leadership
to achieve a goal or a common purpose. Organization is the
foundation upon which the whole structure of management is
built. All organizations have a management structure that
determines relationships between activities and the members,
and subdivides and assign roles, responsibilities and authority to
carry out different tasks.
The organization structure decides the different tasks to be
carried out, the people who are to do these tasks and the
relationship between the Activities that are carried out. It also
decides the authority and responsibility assigned to people
and the relationship between them.
The study of organization structure and the functioning of the
organization is imperative to a management student.
The organizational study aims at creating a practical
knowledge, experience and exposure for the students by

giving the opportunity to understand, observe and analyse the

nature, vision, objectives and functioning of an organization
and the activities of various departments in the organization.
India is second in the world in the food processing industry
behind China. India has the potential to be the biggest
producer. The industry is one of the top Industries in country,
it is rated as fifth in terms of production, consumption and
export. The industry has the capability to attract FDI of US$
33 billion in the next 10 years. The segments that are present
in this industry are: Dairy, fruit and vegetable processing,
Grain processing, Meat and poultry processing, Fisheries,
Consumer Foods Including packaged foods and beverages.
This sector in the country is on track to ensure high level of
profitability in the coming years.
IFL is in the fisheries and consumer foods segment of the
industry, IFL exports different types of fishes and also produces
different food products such as Parathas, Curries and Snacks. The
company produces its products for the domestic market and also
exports its products to Europe and Middle East.

SCOPE OF THE STUDY

The study is conducted in Innovative Foods Ltd.,
Ezhupunna. It is at Alappuzha district in Kerala. The
company deals with sea food processing and production of
Ready-to-Cook" and Ready-to-Eat dishes. The study
conducted at IFL helps to understand better the working of
the organization and the functioning of the various
departments of the organization. The study also helps to
give a clear understanding of the organization structure
present in the organization. It reveals the working of the
various departments such as sales, service, manufacturing,
human resource, finance etc. The different tasks in the
company were studied and knowledge about different
functional departments was gained through the study. The
study was done in the Head Office of the company at
Ezhupunna. Alappuzha. Apart from Ezhupunna, the
company has offices in Bangalore, Mumbai, Delhi and
many others places of India.

OBJECTIVES OF THE STUDY

1. To understand the company as a whole

2. To familiarize with the organizations and its
functioning.
3. To understand the business operations of an
organization.
4. To understand the quantity and quality aspects in a
manufacturing firm.
5. To understand the functioning and the relationship
between different departments in the organization.
6. To obtain exposure to the industry and to gain
experience.

METHODOLOGY
Research is a scientific and systematic search for pertinent
information on a specific topic. Research methodology may be
understood as a science of studying how research is done
scientifically.
The method used in the study involves, collecting, analyzing
and organizing different types of data related to the
organization. During this process, the data received can be

divided into two namely, Primary data and Secondary data.

Primary Data:
It is that data which was collected by direct observations and
through direct discussions with the concerned employees in
the organization.
Secondary Data:
This is that set of data which is already available in firms
internal records and are gathered from such sources. The
sources used here are Company brochures and Website of
the firm.

Limitation of the study

The main limitation of the study is most of the data were

collected through interviews and so the information is subjected
to the bias of the individual. Time was a limiting factor.

CHAPTER 2
ANALYSIS OF THE REMOTE EXTERNAL
ENVIRONMENT

ANALYSIS OF THE REMOTE EXTERNAL

ENVIRONMENT

1. SOCIAL FACTORS
India is a country of vast social and cultural diversity. We
have different languages, cultures, societies. Customs and
religions.
The food processing industry is highly affected by the changes
in the social trends of the people With the growth of
technology and the change in lifestyle, people all over the
country prefer to have fast food even at home. This is how
Ready-to-cook and Ready-to-eat" food items have an
increasing demand. US brands such as Pizza Hut. K.FC and
McDonalds are a household name in our country.
Also processed food has got higher demand compared to the
past. Processed fish which is already cleaned and is ready' to be
cooked has a higher demand.
Thus the change in the lifestyle and the social outlook of the
people of India has led to a higher demand of processed food.

This increase in the demand has had a huge effect on five food
processing industry and this has led to the prosperity of many
companies.

2. POLITICAL FACTORS
Food processing sector is one which has got key attention from
the government because, about 70% of the population in the
country is dependent on agriculture for livelihood. According to
reports in 2013 food processing sector in India stands at $135
billion and is estimated to grow at a CAGR of 10% to reach
$200 billion by 2015. The industry has contributed to 7% of the
GDP of the country, Value addition of the food items in the
country is expected to increase from 8% currently to 35% in
2025.

For the development and modernizing of the food processing

units, for the creation of infrastructure and support of human
resource development, the Government has initiated and
implemented many schemes. Some of these schemes include.
1. Tax deduction in agro processing industries.

2. Excise duty on meat, poultry and fish has been reduced

by 50%.
3. Food processing units were included in the priority
sector of banks.
4. The Government is planning to offer 100 percent FDI
and tax benefits in this industry.
5. The ministry supports continuous growth of
infrastructure for the sector through Mega food parks.
6. Widening of the Research and Development in this
sector.
Segment wise policies have been implemented by the
Government in this sector. All the above factors show that the
political scenario in India is favorable for the development and
growth of industries in the Food Processing sector.
3. TECHNOLOGICAL FACTORS
Food processing is an industry which is highly dependent on
technology. With the improvement in the technology, the food
processing industry can grow better. The introduction of latest
technologies in the canning, preserving and packing the
industry will grow and prosper.

One such example is the introduction of Vacuum packaging.

This technology is mainly used in the packaging of agricultural
products such as nuts and also for seafood such as shrimps. It
ensures that the food product is tightly packed and is vacuum
protected so that the damage that may occur due to microbes
and also due to handling is reduced.
Also the use of conveyor belts and other technology during the
processing of products will make sure that the production is
faster and more efficient.
Technology can also be used to ensure the quality of the
packaged food products. The companies have to make sure that
the products meet the quality requirements of the customers.

4. ECONOMIC FACTOR
India is a country which is traditionally dependent on
agriculture. The food processing industry is one of the largest
in India and is ranked 5 in terms of production, consumption,
export and growth. The industry has contributed 7 percent to
the GDP of our country.
By the increase in the income of the people, their life style
and food habits also changes. The change in lifestyle will

ensure that the food processing industry is growing. The

Government has thus invited 100 percent FD1 in this
industry and also has given tax exemptions and many other
benefits.

5. ENVIRONMENTAL AND DEMOGRAPHIC FACTORS

India is a country which has always been dependent on
agriculture. 70 percent of the people are dependent on
agriculture for their livelihood. The environmental and
demographic features of the country are highly favorable for the
agriculture. This will drive the growth of the food processing
industry.
In the coastal areas of the country such as Eastern ghats and the
Western ghats, fishing is one of the main occupations of the
people. The abundant availability of fish in this area is one of
the main reasons for the presence of sea food processing
industries.
The processed food which is consumed by the people of the
country is low compared to the total production of food
processing sector. Thus a good quantity of the processed
products can be used for exporting.

INDUSTRY PROFILE

FOOD PROCESSING INDUSTRY

Food processing is the process of adding value to the
agricultural products and other food items so that they are made
attractive, marketable and increase their shelf-life. The trend in
food processing industry include,
1. Reducing the fat content of food products.

2. Maintaining the natural taste and freshness of food

products.
India is the second largest producer of food. The first place is
being held by china. The potential for Indias development in
this sector is backed by the vast agriculture sector of India. The
food processing sector in India stands at fifth in terms of
consumption and export. It is one of the largest industries in the
country. The industry has been witnessing huge changes mainly

due to large amount of disposable income in the hands of the

people.

The proportional expenditure of the people on the basis of

agricultural products is reducing and the same for processed
food products is on a rise. The food processing industry thus
has got potential to attract FDI of about $33 million in the next
10 years. The following are the various segments in the food
processing industry.

1.
2.
3.
4.
5.

Dairy, fruits and vegetable processing.

Grain processing.
Meat and poultry processing.
Fisheries
Customer foods including packaged foods and
beverages.

GLOBAL SCENARIO
The global processing industry is valued at US $3.2 trillion. It
accounts for over 3/4th of global food sale. 16 per cent of the
total agricultural products is traded worldwide but only 6 per

cent of processed food is traded worldwide .United State of

America (USA) is the single largest consumer of processed
food and accounts for 31 per cent of total sale.

The sector has seen high growth in developed economies in

Western Europe, Japan, Australia and North America. The
sector has seen good growth in the developing economies too.
The sector has contributed very much to the GDP of the
economies. For example this sector contributes to 7 per cent of
the GDP in India.

There many companies which contribute to the global food

processing industry'.The top company in this list is PepsiCo,
According to statistics from Bureau of labour Statistics of USA.
1,477 thousand people are employed in this sector in USA
alone, This shows that on worldwide basis a huge number of
people are employed in this sector.

INDIAN SCENARIO
In India agriculture is a key economic driver with 15 per cent

contribution. This has been one of the reasons for the

development of the food processing sector in the country, food
processing sector has contributed 7 per cent to the GDP. The
Indian food processing industry stands at $135 billion. The
growth of the sector is expected to be at 13-15 per cent in the
last 2-3 years. The industry is projected to reach at $200 billion
by 2015 and $318 billion by 2020. Around 13 million people
are employed in this industry.
In India among all the segments, Dairy is the segment that holds
the maximum share of 37 per cent. The industry is on the path
of growth and is expected to have a total investment of $1400
billion in the next 10 years. The industry contains a huge
number of rice mills, flour mills, oil seed mills etc.
Fisheries - India is the third largest producer and stands second
in the production of inland fish. This segment contributes 1.4
per cent to the national GDP. India is endowed with rich fishery
resources and has vast potential for processing of fisheries. The
processing of fish, which includes canning and frozen fish is
carried out mostly for the
export purpose. The entire potential of processing of fish in
India has not been utilized and there is a huge scope for
development.

Vision 2015 - The Government of India has set targets

for the development of the industry by 2015. They are:

1. Tripling the size of the food processing industry to reach

$210 billion by 2015.
Raising the level of processing of perishables from 6 per
cent to 20 per cent.
2. Increasing value addition from 20 per cent to 35 per cent.
3. Enhancing India's share in global food trade from 1.5
per cent to 3 per cent

The Government of India has taken up and implemented many

schemes to improve this sector and thus ensure the growth of
this sector. Some of such schemes include:
1. Widening of Research and Development in this sector.
2. Tax deduction on profit: 100 per cent in the first 5 years.
3. Food processing industries were included in priority lending
segment of bank.
4. Zero import duty for capital goods and raw material in
case of 100 per cent export oriented firms.

5. The Government is planning to offer 100 percent FDI and

tax benefits in this industry.
6. The ministry supports continuous growth of infrastructure
for the sector through Mega food parks.
FIVE FORCES ANALYSIS OF THE INDUSTRY
Michael Porter has provided a framework which shows an
industry being affected by five forces. This analysis can be done
to know the position of a firm in the industry with respect to the
rivals and will help take decisions which provide a competitive
edge over the rivals. The five forces which affect the firms
position are:
1. Barrier to entry.
2. Bargaining power of the supplier.
3. Bargaining power of the customer.
4. Threat of substitutes.
5. Existing competition.

Barrier to entry:

In Kerala or India, there are not many barriers for new

entrants in the food processing industry The Government
aims at strengthening this industry and thus has started many
initiatives the new companies can avail all these benefits
Every new entrant has to ensure the following

Brand name:
The new company should have a brand which is to be
developed the company has to gather brand loyal
customers, Sumeru has been successful in doing so
Product quality:
The company should ensure that the product meets the
quality requirements, in IFL this is achieved by
inspecting the packed products.
High capital:
For setting up a food processing unit the initial capital

will be pretty high- But with the initiative taken by the

government to strengthen this sector, this cost can be
under control.
Ex: Zero import duty on machines for 100 per cent export
oriented firm.

Bargaining power of supplier:

The raw materials required for the food processing industry is
easily available all across the state. Processing of fish is one of
the main activities of IFL. Shrimp and other fishes are available
in plenty.
The supplier does not have the power of bargaining as the firm
has the option of seeking another supplier.

The firm also prepares ready-to-cook dishes. For this the raw
materials are bought from suppliers around the state. The
condition here is the same as in the case of fish. The company
can change the supplier it needed and this in turn does not give
the supplier a scope for bargaining.

Bargaining power of customer:

People of India have always sought quality in the case of food

items. The company targets middle class and above families
which can use their processed products. If the product manages
to keep good quality, then the customers would not mind
spending money on that product

Also the customer requires information about the product. IFL

provides adequate information of each and every product to
their customers. The price of the products in IFL is reasonable
and is not considered as too high by the customer.
IFL has a huge customer base, domestic and international. When
the number of customers is high, no single customer will have
the power to bargain. Also the quality factor plays a huge role in
this bargaining of customers.
The brand name of Sumeru is becoming one of the most
common ones in the Indian market. The customers will come to
know that for food item which has quality as Sumeru, they will
have to pay a reasonable amount.

Threat of substitutes:
There are not many substitutes for processed food items.
Therefore the threat caused by them is somewhat nil. This is
because of the following reasons.

Quality:
Even if a substitute is found, the product may not have
the same quality.
Product differentiation:

In the food processing industry the products are

well differentiated and customers may not find
comparable products.
Limited substitutes:
The customers may find it difficult to find products to
satisfy their needs.

il

Existing rivalry:
In the Indian scenario, IFL does not have many rivals as
such. The rivals that share the same segment as that of
IFL are McCain Foods Ltd and A1 Kabeer. The
following factors affect the competition:
Lower storage costs:
In this case the competitors are required to unload their
stock all at once.
Exit barriers:
The smaller companies may not stay in the
industry for long and they will leave the market.
This will help the larger firms like IFL to grab
more market share.

Product differentiation:
The products of the competitors and IFL are mostly the
same, which increases competition.
Product quality:

The quality of the products is a huge factor which affects

the competition.
The Research and Development wing:
This wing helps in the creation of new recipes and thus
new products offering a wider portfolio.

ECONOMIES OF SCALE

A company which achieves economies of scale lowers the

average cost per unit. This is done by increasing the level of
production in the firm. By doing so, the company is able to
spread the fixed costs over a larger number of units. IFL
achieves economies of scale through the following measures:
1. Large volume of production.
2. Easy availability of raw materials.
3. Labour availability and absence of labour unions.
4. Skilled women labour required for the process is easily
available.

COMPETITOR ANALYSIS
IFL has not been competed with by companies from the
domestic market .This is mainly because of the products that the
company offers. The product portfolio of IFL includes Ready-tocook- dishes and processed fish products. Some of the major
customers of IFL include McDonalds. Marry Brown, Subway,
KFC, Taco Bell etc. IFL provides these restaurant chains with the
Pans and other snacks that are required for them.
The competition for IFL mainly comes from international
players like McCain Foods Ltd and AI Kabeer.

McCain Foods Ltd

It is a Canada based company which deals with frozen foods. It
was found in the year 1957 has an attractive product portfolio. It
was started by 4 brothers from the McCain family and is privately
owned by their descendants. It is the worlds largest producer of
frozen foods and other oven-ready frozen dishes.
It has 50 production facilities spanning over 6 continents and has
a good distribution network which makes them the biggest firm.

The company believes in utilizing the latest technology in

agriculture and also by sharing their vast experience with their
growers. The company has many initiatieves which are aimed at
reducing the environmental pollution which may be caused by
their activities.
McCain Foods (India) is a wholly owned subsidiary of McCain
Foods Ltd. They started their operations in India and the
subcontinent in the year 1998. Their products are used by
leading fast food chains hotels and are popular for in-home
consumption.
Their production portfolio includes McCain French fries,
McCain Smiles, McCain Crispy potato McCain Aloo tikka,
McCain Veggie nuggets etc.

Al Kabeer Group
Al Kabeer has specialized in frozen food manufacturing for
over 30 years. The group has invested in manufacturing plants
around the world. The plants are located at most appropriate
locations to ensure highest quality of food products. They
distribute around 300 products to over 8000 retail outlets.
Al Kabeer has got a wide product portfolio which includes, sea

food products, meat and poultry products, vegetarian products

and ready-to-eat meals. The company owns farms in
Hyderabad, India were they grow the vegetables as per their
requirement. They have got a Research and Development centre
in England and recently started one at Mumbai.
The company is based at Dubai, UAE. The companys Indian
head office is located at Mumbai. Their distribution centers are
based at Cochin, Chennai, Bangalore, Pune, Mumbai, Delhi,
Goa and Kolkata.

CHAPTER 3
COMPANY PROFILE

COMPANY PROFILE
Innovative Foods Ltd. is the leading frozen food player in the
country. The company markets its products under the brand
name of Sumeru. The company has a large product portfolio and
has establishes its presence in all the major cities of the country.
One of the biggest positives of the company is the distribution
network the company which covers all the major cities and towns.
In the exporting scenario, IFL has been exporting its products to
many countries such as USA. UK, Canada, Middle East, Japan.
Singapore etc. The manufacturing plant of IFL is situated at
Kochi. Kerala.
The company has always believed in identifying the product
attributes required for the customers and optimizing these
products through research. One of the biggest assets of IFL is
the product development centre which develops in-house
products through research.
Currently the company is owned by Indian Equity Partners
who have a share of 98.34 per cent.

History
IFL was first started as Innovative Marine Foods Ltd. in the year
1989. It was established in 1994 as a public limited firm. The
company was formed as a joint venture between Amalgam
Enterprises from Kochi, Mitsubishi Corp from Japan, Saudi
Fisheries from Saudi Arabia, Ristic Gmbh from Germany.
Gourmet Club from USA and Sea Products from Italy.
The company then set up 3 state of the art value addition sea
food processing factories at Mumbai. Kochi and Pamaru in
Andhra Pradesh. By the year 1997 Innovative Marine Foods
Ltd had grown to be the largest shrimp processing operators. At
present the company has got three plants at Ezhuppunna, which
is 20 km from Cochin.
Frozen and ambient food business has been carried out by IFL
and the company is involved in processing and marketing a
wide range of ambient and frozen vegetable products, meat
products, ready-to-cook and ready-to-fry products.

Exports
IFL has its footprints in the overseas markets with Sumeru's
presence In US Europe Middle East, Japan, Singapore, FIJI and
Sri Lanka. Currently. IFI, supplies products to various food
service companies under Private labels.

PRODUCTS
Figure 1: Products

Products
Quick Fine Ocean Garden Farm
Snacks Dining Fresh Fresh Fresh
(Source: As per company website)

Quick Snacks

1. Fish Fillets
2. Fish n Chips
3. Fish Fingers

Fine Dining
1.
2.
3.
4.

Malabar Paratha
Ceylon Flaky Paratha
Ajwain Paratha
Jeera Paratha

Ocean Fresh

1.
2.
3.
4.

Tiny prawns
Small Prawns
Medium Prawns
Large Prawns

Garden Fresh
1. Green Peas
2. Sweet Corn

Mission
The mission of IFL is :
IFL is fully committed to exceed customer expectation in
providing safe, legal. Wholesome ready-to-cook, ready-to-fry
food products with effective communication, environmental
management and continual improvement."

Quality policy or Food Safety policy

The food safety policy followed at IFL is as follows:
We are an organization with our core competence in frozen
ready-to-eat and ready-to-cook products. The essence of
frozen food is its freshness. Our primary objective is to
process at deliver to our consumer food as fresh as possible.

1. Our endeavour is to produce safe and hygienic food of

highest quality for all customers.
2. Establishing, maintaining and consistently improving the
food safety managers system.
3. Ensuring the involvement of employees at all levels
through training.

4. Providing appropriate resources to ensure compliance to

GMP/GHP norms.
5. By adhering to customer requirements.
6. Complying with statutory and regulatory requirements
and communicating the same to all concerned for
compliance.

VISION
The Vision of IFL is ''Bringing excellent quality into
business and business into excellence to be the chosen
quality frozen food supplier from India.

Achievements
1. Spirit

of

Partnership Award

2013 by

Jubilant

Foodworks.
2. Kerala State Energy Conservation Commendation
Certificate 2013 Department of Power, Kerala
Government,
3. Grade B By McDonald's according to, The
McDonald's Supplier Quality Management System,

4. Samman Patra for outstanding Revenue

Performance 2013 - Department of Revenue,
Ministry of Finance, Government of India,
5. ISO 22000:2005 starting from 06,h march 2014 for 3
years.

Management

IFL is currently owned by Indian Equity Partners and they

own a share of 98.34% of IFL.
The company is governed by a board of directors. There are
6 directors in this board. They meet once in every year. Out
of these 6 directors, 2 are full time directors for IFL.

Organization structure
IFL follows a functional structure in the organization. That is
each task is done by people belonging to that particular

department. The Organization has many departments, the

details of which are provided further. The main departments in
IFL are:

1. Production
2. Human Resource
3. Finance
4. Engineering
5. Logistics
6. Sales and Marketing
7. Quality control
8. Stores and Material
9. Procurement, R&D and purchase

Figure 2: Organization Structure

CEO

CFO

VP HR &
corporate Affairs

VP sales &
Marketing

VP Operations &
Technology

GM
Procurement &
R&D

Chier Manager
Finance

DGM
Manufacturing
(Source: As per company website)

Number of employees

The following is a table showing the number of employees

working in the plant and office at IFL.

Table 1 : Number of Employees

Number of Employees
Department
Production
Engineering
Quality Control
Procurement, R&D and Purchase
Logistics
Stores and Materials
Sales, Marketing & Exports
Finance & IT
HR, Admin & Security

Contract

On Roll

150
9
3
1
3
7
78
-

15
10
10
5

16

Total

10
20
45

165
19
13
6
13
27
123

20
6

20
22

TOTAL

408
(Source: As per HR Department)

FUNCTIONAL ANALYSIS

Human Resource Department

Human Resource Management is the planning, organizing,
directing & controlling of the procurement, development,
compensation integration, maintenance and separation of
human resources to the end that individual, organizational and
social objectives are accomplished.
Human resource department decides the man power required
for the company to run. It makes the working of organization
smooth and creates better environment to work. It focuses on
the human aspects and thus looks into every matter from the
point of employees as well as the management.

This department is headed by the Vice President - HR and

Corporate Affairs of 1FL. This department has to take care of
all the activities relating to the employees of the organization.
This includes Planning, Budgeting and Forecasting,
Recruitment & Selection, Stalling, Training and Development

of the employees. The HR department takes care of all the

employees and their issues.

Department Structure:

Figure 3 : Human Resource Department Structure

VP HR &
Corporate
Affairs
Asst. HR

Trainee
HR

Support Staff

Executive HR

Administrative
Officer

The activities of the Human Resource Department are:

1. Manpower planning,
2. Recruitment end deployment
3. Appointment, Induction and Orientation of new
4.
5.
6.
7.
8.
9.

employee,
Maintenance of employee records,
Salary and wage details,
Performance appraisal of employees.
Training and development
Grievance management
Welfare of the employees.

Recruitment and Selection

It is the most important task of an HR executive. He/she has to
find a person who best suits the organization and its culture, it
should also be ensured that the person selected will contribute
well to the development of the organization and also will be
able to develop himself in the firm.

IFL uses websites such as Naukri.com for the recruitment

process. They also have tie ops with consultancies who provide
candidates for the selection process.

Employee Referral
Also IFL has an employee referral scheme where an existing
employee of the firm can refer a person for a vacant position in
the organization. The person is the interviewed and if found
satisfactory is taken up for the post.

Performance Appraisal
Performance appraisal is the process in which the employees
performance is evaluated to check if he has met the targets. If
the employees performance is satisfactory then he/she will be
rewarded with either promotion, salary hike or an incentive.

In IFL performance appraisal is done on an annual basis. The

employees who are found to be satisfactory are promoted to the
next grade.

Training And Development

Training is the process in which an employee is educated as per

the requirements of the company. The training is said to be
effective if it pass on information to the employee and develop
his skills which can then be used back at work place.

Other HR Activities

There are half yearly and annual family get together programs
that are organized by IFL. The employees can be present with
their families. The program is usually held at some good hotels
in Kochi or Ernakulam.

Operations Department

In a firm dealing with production, this department is one of the

most important departments. The production of the products
should be such that there are no bottlenecks. The production
should be in compliance with the quality policy of the firm

Functions and duties of Operations Managers:

1. Understanding strategic objectives: Operations

managers must clearly understand the goals of the
organisation and develop a clear vision of exactly how
operations will help achieve them
2. Developing an operations strategy: Due to the
numerous decision-making involved with operations, it is
critical that operations managers have a set of guidelines
that are align with the organisation's long term goals.

3. Designing the operation's products, services and

processes: Design involves determining the physical
form, shape and composition of products, services and
processes.
4.

Planning and controlling: This involves deciding what

the operations resources should be doing and making
sure that it is getting done.

Department Structure
Figure 4: Operations Department Structure

VP Operations and
Technology

DGM
Manufacturing

Manager
Production

Asst. Manager
Engineering

Asst Manager
Production

Shift
Supervisor

Officer

Asst Manager
Store

Officer
Data Entry

Machine
Operator
Loading/Unloading
Workers

Worker

Officer
Store

Figure 5: Operations Department Structure

VP Operations
& Technology
GM
Procurement &
R&D
Manager
Purchase
Asst Manager
Purchase

Manager
Logistic
Asst Manager
Logistic

Delivery Boy

Commercial
Officer

Manager
QA

Executive
R&D

Officer/
Microbiologist

Cook

Wrkers

Workers

Finance Department

Finance is the life blood of the business. It is required for

organization for its functioning. It is an important aspect of the
business. The main aim of the department is to arrange funds
for the firm when it needs.
The department develop and maintain proficient financial
planning, budgeting and central supporting systems in order to
support the other departments in achieving their objective. They
also provide accurate, reliable, timely, supportive and cost
effective financial reports to the management. Finance
department takes care of all the monetary transactions of the
company and also keep a record of it .Ascertainment of cost and
profit planning are the most important function of the
department. They evaluate funds, how they are procured and
used. They have many responsibilities to carry on.

Objectives of finance department:

1. Profit maximization
2. Wealth maximization
3. Maintenance of liquidity

4. Investing the available funds

5. Raising of capital.

Functions and duties of Finance Manager:-

The finance manager is the head of finance department which

deals with all matters of finance and accounts of the company.
1. Allocating the fund provided by the government to
various department.
2. Evaluate the effectiveness of financial decisions.
3. Advice Managing Director in all financial and Accounts
matters.
4. Scrutinize and clear the financial proposals.
5. Preparation of Annual Budgets.
6. Timely preparation of annual accounts

Records maintained by the finance department:-

1) Annual report containing past performance, current

financial figures, management discussions, profit and loss
account, balance sheet and other financial statements.
2) Quarterly reports
3) Monthly report to the top management on financial
performance, sales production, current liabilities, current
assets etc.

Department Structure:

Figure 6: Finance Department Structure

CFO
Chief
Manager
Centralized Company
BIlling Affairs

Costing

Commercial Accounts & Support AGM IT &

Taxes Ledger Staf Systems
Officer
IT

Commercial taxes:

A separate section is provided for dealing with the taxes of the

firm
Accounts and ledgers:
The employee in this department has to keep a record of the
accounts and ledger for the firm.

Costing:

This department is to handle the costs incurred to the firm such

as the salary and wages, the cost incurred during the production
process and other incidental costs. They may include reimbursement of bills of employees etc.

In IFL the IT department is clubbed with the finance

department. The IT department has only 2 employees: an AGM
and an employee. IFL does not use too much sophisticated

technology for the office purposes. This is a reason why the IT

department is small.

The company uses Tally for accounting and other office use.
The company has an intranet for communication among the
employees.
The production process is mostly manual and is not fully
computerized

SALES AND MARKETING

Marketing is defined as the process of creating, communicating,

and delivering value to the customers and managing the
customer relationship in ways which would benefit the
organization and its stakeholders.

Marketing division is responsible for planning, organizing,

directing, and controlling the marketing activities. The basic
goal of marketing is satisfaction of needs of customers and
generation of revenue for the business

Key responsibilities of the marketing manager

1.
2.
3.
4.
5.

Instilling a marketing led ethos throughout the business

Researching and reporting on external opportunities
Understanding current and potential customers
Developing the marketing strategy and plan
Managing budgets

Department Structure:
Figure 7: Sales & Marketing Department Structure

VP Sales &
Marketing

GM
Sales

Regional
Manager

GM
Export

GM
Activation

Branch Manager

DGM
Activation

Asst
Manager

Executive
Activation

Officer
Sales

Prometer &
Merchandizer

DGM
Customer
Development

DGM
Key Accounts

DGM Customer Development:

This segment has to deal with developing more customers for

the firm. It also has to ensure that the existing customer base is
fully satisfied.

DGM Key Accounts:

This segment handles all the important accounts that are

present. These accounts can be the ones related to the food
chains that use the products of IFL.

Marketing activities at IFL:

The company does not do too much advertising for their

products.
They have ensured that freezers with brand name Sumeru on
them have been placed at most of the retail outlets.

They also employ promoters who will be cooking their products

on the spot in these retail stores. This is the main method of
merchandizing for IFL.

Customers of Sumeru:

IFL has a number of hotel chains that use their product. Some
of these are KFC, Subway, Marry Brown, McDonalds, Taco
Bell, Dominos etc. These chains use the products such as
vegetable patty and chicken patty.

Logistics Department
Logistics is the process of flow of goods from the point of
production to the point of consumption so as to meet some
requirements.
In IFL, logistics department comes under the Operations
department. The manager in logistics department has to report
to the General Manager (Procurement and R&D). The GM has
to report to Vice President (Operations and Technology)

The raw materials required for the production in the plant is

collected from the suppliers and is brought to the cold storage in
the plant.
The cold storage is maintained at -29 degree Celsius and has a
huge volume.
The finished goods too are stored in the same cold storage and
from there are taken to the customers in sealed containers.
The delivery to the customers is done as per the customer
requirement or order.

The company owns a couple of delivery vans which are used

for the purpose of logistics.

Department structure
Figure 8: Logistic Department Structure

VP Operations &
Technology
GM Procurement
&
R&D
Manager
Logistic

Asst
Manager

Delivery Boy

Commercial
Officer

Purchase Department

This department deals with the purchase of different raw

materials required for the production In IFL the quantity of
material available is taken from the store and the forecast of the
requirement is obtained from the operations department. From
both of these the amount of raw material to be ordered is
obtained. This is then ordered and is stored in the cold storage.
This department also falls under the operations department.

The financial transactions related to the purchases are handled

by the cost section of the finance department
Some of the well-known suppliers of raw material for IFL are
Choice fisheries and Geo fisheries.

Department Structure

Figure 9: Purchase Department Structure

VP Operations &
Technology
GM Procurement
&
R&D
Manager
Purchase

ASST Manager

Research And Development Department

The R&D department is one of the biggest assets of IFL. R&D

has produced many in house products for customers in IFL.
This department also comes under operations department and is
headed by a executive R&D. They get to know the requirements
of the customers and then work on these to produce the best
quality product recipes.

Department Structure:
Figure 10: R&D Department Structure

VP Operations
Technology
GM
Procurememnt
R&D

Executive

&

&

R&D

Cook

Workers

Key Resources
Innovative Foods Ltd. is the leading frozen food player in the
country. The company markets its products under the brand
name of Sumeru. The company has a large product portfolio and
has establishes its presence in all the major cities of the country.
The key resource for IFL comprises of its highly skilled people,
the technology used and the extensive research conducted. The
team of this company is equipped with highly efficient and
skilled people from various backgrounds and is provided with
training which will help them to perform better. The technology
is upgraded and the company has a well-equipped research and
development team. All the factories are equipped with robust
R&D facilities and a lot of importance is given towards
continuous up gradation.

SWOT Analysis
Swot analysis is a strategic planning tool to evaluate the
Strength, weakness, opportunity and threats involved in a
project or in a business venture or in any other situation of an
organization or individual requiring a decision in pursuit of an
objective. It involves monitoring the marketing environment
internal and external to the organization or individual.
Table 2 : SWOT
Strength:-

Weakness:-

In house recipe developed

IFL does not have a proper

by R&D department.
An
improved
delivery

ERP.
The company still uses out

chain.
Labor available in vicinity

dated software.
The production in the plants

of the company.
Raw material is

is not computerized.
Promotion
is

available.
Good relationship within
the organization

easily

lesser

compared to competitors

Opportunities:

Threat:-

Government

initiatives

aimed towards developing

the sector.
Not
many

domestic

International

competitors

will be with the aid of better

system and ERP.

Competitors may have an

competitors and hence can

edge to win the market

attract

share.

market

more

domestic

Strength
The main strength of IFL is its in house recipe developed by
the R&D department
IFL has an improved delivery chain which delivers goods to
their customers in a timely manner. Availability of man power
and availability of raw materials is another strength. There are
no labour unions.

Weakness
Weakness of IFL is that it do not have a proper ERP and uses
outdated softwares.
The production in the plant is not computerized.
Opportunities:

Government

is

introducing

different

schemes

for

the

development of food processing sector which is an opportunity

for IFL. And domestic competition is less , hence can attract
many customers.
Threat
International competitors are equipped with better ERP system
and Modern updated softwares which will give them an edge
over IFL.

CHAPTER 4

OBSERVATION

IFL is the leading firm in frozen and ambient food industry in

India. It is located in kochi and also has branches in many
important cities of the country. It offers a wide variety of frozen
food and has a huge customer base which includes the likes of
Taco Bell , McDonalds , KFC , Dominos etc.
The company has been facing competition from international
brands such as McCane Foods LTD and Al Kabeer.
The management structure of company is successfully
implemented and the operations of the company is in a
profitable manner. All the departments of IFL are well Managed
by qualified personnel and department have enough employees
to ensure proper working of the same.
Employees are dedicated and efficient in their work. The
organization provides training and development as and when
required and thus ensures that the employees perform better.

CONCLUSION

The organization study done at Innovative Foods Limited,

Ezhupunna gave me an immense knowledge about food
processing industry and its operations. Various departments in
the organization were studied and I was able to understand the
working and link between all the departments of the
organization.
IFL is the leading firm in the industry and with the efficient
management, well established processes and dedicated staff the
company is capable of reaching greater heights.

Bibliography

Robbins, S P. Human Resource Management. New Delhi: New

Age Publication, 2009. Print.
Kottler, Philip., Marketing Management. New Delhi: Prentice
Hall of India Pvt Ltd, 2002.
Prasad, L M. Principles and Practice of Management. New
Delhi: Sulthan Chand & sons, 2010.
ASA & Associates. A brief review on Food Processing Sector in
India , 2013

www.Sumeru.com

www.mofpi.nic.in