INTERNSHIP AT CAPEX

INDUSTRY PROFILE

Cashew, Anarcadium Ocidentale is the leader in the edible nuts. The word cashew is
derived from the Portuguese name of similar pronunciation "caju”, which is in turn, comes from
the Tupi- Indian word “acaju”.

Cashew is a tropical evergreen plant, belonging to the family of Anacardiaceous, known

for its seed that are consumed worldwide. This plant is actually a small to medium sized tree
with a single trunk and thick leaves. The sweet flavoured nuts like seeds are obtained from the
bottom of the false fruit of this tree, which is termed as Cashew Apples. The outer covering of
the seeds are toxic and is hence removed before consuming the seed. .These kidn14ey shaped
kernels are of different grades, sizes and colours. The cashew tree is curious plant with multiple
uses, yet we are only familiar with one of its fruits, the cashew nut.
The Indian cashew industry is one of the few industries in the country which is export
oriented. Small quantities of cashew kernels were exported from India even before the First
World War in 1914. But the real break came when cashew started appearing on the global
market towards the middle of 1920's, when packing of cashew kernels on an atmosphere of
carbon dioxide were introduced until then, the kernels were packed in wooden cases lined with
newspapers. Being highly susceptible to infection, this mode of packing resulted in deterioration
in the quality by the time the kernels reached the destination.

In the middle of 1920's, two countries dominated the trade. This was because, in India,
kernels were introduced entirely from raw nuts grown within the country. It was with the
emergence of East Africa as a supplier that the trade in raw nuts started. In these days, the
cashew industry depends mostly on the raw nuts imported from various African countries.

The expansion of the global market for the cashew kernels in the 1960's promoted India
to adopt a systematic and integrated approach towards developing the cashew economy In the
mid I960's the government launched a cashew development programme and in 1966 a separate
Directorate of cashew nut development was established under the ministry of agriculture. As a
result, India witnessed a remarkable expansion in the area under cultivation although the
processing industry is still heavily dependent on imported raw nuts.
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India is the largest area holder of this crop. Cultivation of cashew in India confines
mainly to peninsular areas. It is grown in Kerala, Karnataka, Goa and Maharashtra along the east
coast. To a limited extent it is being cultivated in Chhattisgarh, Eastern states (Assam, Manipur,
Tripura, Meghalaya and Nagaland) and Andaman and Nicobar Islands.

In India, cashew occupies an area of 7.70 lakhs MT and an average productivity of 710
Kg. Of these 2.001 lakhs of the plantations developed from the beginning of the eight plans
alone have been with supplier varieties.

Apart from the foreign exchange earnings of the industry, it plays a major role in the field
of providing employment to a very large number of people both directly and indirectly and it has
thus played a vital role in the economy of the country. It generates employment in the processing
and agrarian sector, employing over 3 lakhs persons with 95% of them being women.

WORLD SCENARIO

Cashew is the food product of the new world as it is a native of Brazil. It has placed third
among the largest consumed tree nuts in the world. Cashew is also used in grounded form that is
called cashew butter.

The commercial production of cashew is done in more than 32 countries in the world.
The seed generally prosper in the hot and humid regions of the earth near the equator like in
central and South American Zone, India and African Zone.

The World's total production in the context of Cashew is around 23 lakhs ton per annum.
The total area in the world under cashew cultivation figures up to 36 lakhs hectares. The world
consumption of cashew has ever been rising with time. The trade patterns in cashew in the world
suggest that 8 to 9 million cartons of cashews are traded in the world in a year.

Vietnam is the largest producer of raw cashew followed by India and Brazil. India
dominates and leads the cashew kernel production list. The world consumption of cashew has
ever been rising with time. As it is known as the cashew trade cycle, cashew nut was not an
indigenous product of India. The cashew ranks second only to the Almond among the nine tree
nuts in the world. About 400 years ago, the Portuguese brought it to Goa in India, from Brazil.
INTERNSHIP AT CAPEX

Indian cashew industry is one of the few industries in the country which is almost
completely export oriented. Apart from the foreign exchange earnings of the industry, the major
contribution of industry has been in the field of providing employment to a very large work
force.

India contributes to one half of the cashew exports. Vietnam gives a tough competition to
India in the world market as it is the largest cashew producing nation of the world but still India
is ahead in this scenario. Vietnam plans to take over India's dominance till 2010. Due to a large
consumption level of this seed in the world, there is long list of cashew importing countries
dominated by U.S.

India is the largest producer, processor and exporter of Cashew kernels in the world.
Exports of cashew kernels from India are normally subjected to voluntary control and pre-
shipment inspection. Cashew kernels from India are well known for their quality and taste are
well accepted throughout the world. There are regular shipping facilities from India to all ports
of the world. Major shipments in India take place through Cochin port. Other ports are Tuticorin,
Mangalore, Chennai, Vishakapattanam and Mumbai. Regular service of container ships available
from Indian ports in India- U.S. A, India- U.K., India-Australia, India- Japan, India- Middle East
and India- Singapore routes, Cashew Kernels in bulk as well as in consumer packs are available
throughout the year from India.

INDIAN SCENARIO

India has always been a major player in the production of cashew. It has the second
largest producer of raw cashew in the world but conquers the first place among the largest
producing countries of cashew kernels and also in the maximum area covered that figures to be
7.70 lakhs hectares currently. The country provides with around 55% supply of kernels in the
world. The Indian production of cashews contributes to around 4.6 lakhs tons per annum.

Cashew made an entry into Indian subcontinent through Portuguese colonists in the 16th
century. The climate in the country suited the crop so well that it spread along in all the direction
of the continent. India becomes the leader the cashew production till in 2002 its dominating
position is taken over by Vietnam. The country is still the second largest country producing raw
INTERNSHIP AT CAPEX

cashew nuts. It is also is the processing of this food product and the largest exporter of cashew in
the world.

The Indian production of cashews is around 4.6 lakhs tons per year. Maharashtra
stands first among the main cashew producing states in India followed by Andhra Pradesh and
Orissa. The country also is the third largest consumer of the food product in the World after
United States and European.

Union as it consumes over 3 million cartons per annum. As India is the largest processor
country in the world, it is left with more quantity for exports around 4 million cartons in One
year. The Countries that import Indian cashew are:

 United states of America(43149 tons)

 Netherlands (1573 6 tons)
 United kingdom (62 3 8 tons)
 United Arab emirates (8274 tons)
 Japan(4685 tons)
 France(3470 tons)
 Saudi Arabia( 2827 tons)
 Spain (2648 tons)
 Russia( 1990 tons)
 Germany( 1991 tons)
 Canada(1558 tons)
 Greece( 1859 tons)

India somehow imports small quantity raw cashew nuts from African countries so as to
meet the international demand for Indian processed cashew kernels. Cashew industry is directly
connected to the growth of the economy as India earns a good amount of foreign exchange by
exporting cashews. Cashew ranks second among the horticultural commodities exported from
India. This industry also gives employment to around 3 lakhs people the country and the demand
for Indian cashew is quite large due to qualitative edge over other countries.
INTERNSHIP AT CAPEX

Market influencing factors:

 Production fluctuations in the major raw cashew nut producing counties

 Indirect domestic demand due to the presence of large unorganized sector.
 Government policies.

STATE SCENARIO

Cashew industry is the most important one among the traditional industries in Kerala.
Kerala has the largest processing capacity in India, almost 50% of a capacity of one million
Metric tons of raw nuts in 2000. It also exports the highest share of the country's cashew kernels.

Kerala is a small state with very high achievements in social development. The state is
also having a good position in social infrastructure, transport and communication. As per the
records, 1, 48,000 cashew workers are registered with Kerala State Cashew Workers Welfare
Fund Board. Kerala is one among the predominant states of cashew, with large area and high
production in India. At present there are nearly 3 lakhs MT of raw nuts.

The cashew workers in Kerala are a group whose history and present situation, are of
relevance to scholars of the humanities and social science for several reasons. During the past six
or seven decades, female cashew factory employees have constituted the largest single group of
registered workers in Kerala. They have been organized in trade unions since the 1940s and often
have been the most militant of all workers, as measured by man-days lost due to strikes. This
make these individuals contrast sharply with the stereotypical depiction of" Third world women'
as powerless, illiterate victims.

The processing of cashews started as cottage production in which entire families - men,
women and children- were engaged. By the 1930s, production becomes centralized into small
factories. Cashew soon became Kerala's most important export item. Profits were huge and
factory owners were referred toes cashew barons or cashew kings. Exporting cashew nuts was a
way for the owners to become rich quickly, while the workers in those early factories lived under
conditions that have been described as deplorable and slave -like.
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Kerala was one among the first region in the country, after South Canada, where cashew
processing units emerged. In the 1930’s the industry became concentrated in Kollam, in the
former princely state of Travancore. Kerala is the main processing and exporting centre of
Cashew. In Kerala most of the cashew processing factories are located in Kollam district. The
industry provides livelihood for about 6-7 lakhs of employees and farmers, the Cashew Industry
has national importance.

In Kollam District alone there are more than 2.5 lakhs employees directly involved in the
industry, which comes about 10% of the population of the district, out of which 95% are women
workers. It is a fact that any amount received by a women worker will be utilized directly for the
benefit of the family and hence the link relating to family welfare is quite clear. Kerala alone
produces 80,000 M.T. of raw cashew nut every year. The majority of cultivation is in Kannur,
Kasargode, Kozhikode, Trissur and Malappuram districts.

State intervention has been very intense in then Cashew processing sector in Kerala,
largely in response to pressure from trade unions. Initially the State intervened to enact
protective legislation for workers and grant them minimum labour rights given the deplorable
conditions in which they work. In 1945 the Government declared Cashew work places as
factories even though they did not use power. This declaration give employees considerable
obligations, including adhering to stipulated working hours, and paying unemployment
compensation, maternity benefit and employees State Insurance, especially if the factories were
categorized as 'Perennial' factories. Despite stiff resistance from factory owners in 1956 the
Government declared Cashew factories to be ‘perennial'. The industry was also brought under
the purview of minimum wages Act.

An important historical reason for processing capacity being located in Kollam appears to
have been the availability of cheap labour. The industry has always been labour intensive, for
instance it is found that the number of workers per unit of productive capital in Cashew was
21.32 compared to 2.20 in the cotton spinning and weaving, and 2.25 in Coir Spinning and
Waving.

The Cashew Export Promotion Council of India (CEPCI) is the apex body which
regulates the exporting of the processed cashew kernels. The Cashew export Promotion Council
INTERNSHIP AT CAPEX

of India was established by the government of Indian the year 1995, with active co-operation of
cashew industry with the objective of promoting export of cashew nuts shell liquid form.

The council provide necessary liaison for bringing together foreign import with member
exporters of cashew kernels. The enquiries received from foreign importers are circulated among
the council members. The council also extends its officers in setting complaints amicably in the
matters of export / imports either on account for quality and or variation in the fulfilment of
contractual obligations. The council undertakes publicity abroad with a view projecting the
product image to highlight and focus attention on high quality and superiority of Indian cashews.

CEPC would provide one time subsidy to cashew exporters on the identified items of
equipments (to be installed in a single premise) for introduction of improvement in processing of
Cashew products confirming to international standards and comply with quality parameters/
specification of importing counties. The CEPC would provide one time subsidy to cashew
exporters to improve facilities in the factories and get certification like ISO, HACCF etc (a single
premise only). The subsidy would also be providing for setting up in-house laboratory facilities.
CEPC would help the cashew exporters for procurement of equipment (to install in a single
premise) requires for export of cashew in consumer packs with value addition of the product
after roasting, salting, adding flavours etc.

The Council undertakes publicity abroad with a view to projecting the product image.
This serves to highlight the attention on the high quality and Superiority of Indian cashews. The
council participates in specialized International Food Exhibitions and general fairs abroad. As
the council represents the whole industry, it arranges display of products received from members
free of cost. The enquiries received are circulated amongst the members of them to contact the
parties abroad for business negotiations.

Members of the Cashew Export Promotion Council of India, who are manufactures, and
exporters of cashew kernels, are the major sources for cashew from India. Indian cashews are
available with prominent importers in U.S.A, Canada, Japan, the Middle East, Singapore,
Australia, U.K and other EEC countries. There are regular shipping facilities from India takes
place through Cochin port. Other ports are Tuticorin, Mangalore and Mumbai.
INTERNSHIP AT CAPEX

COMPANY PROFILE

Kerala State Cashew workers Apex Industrial Co-operative Society Limited (CAPEX)
was registered on 09-09-1984 under Kerala Co-operative Societies Act 1969 as an Apex Society
of Cashew workers primary society with Headquarters at Kollam. The main object of the Apex
society is to organize Cashew industry in the state on commercial basis, rendering assistance to
affiliated, societies in the matter of procurement and marketing of kernels and other items
produced in the factories of affiliated societies. All these are done to provide the continuous
employment to the poor people engaged in cashew processing. 95% are women workers out of
which 35% are from backward community.

CAPEX is the only co-operative organization in cashew processing sector. The employee
strength .of the 10 factories are above 6000. CAPEX is the only largest cashew processing unit in
the co-operative sector under Industries Department, Government of Kerala. CAPEX contribute
a major portion to the total production in Kerala.

An Apex society under the name CAPEX was formed with the five member societies and
registered as No. IND (ST) 12 with Headquarters at Kollam. The Board of Director of the Apex
society consists of 11 Directors including the Chairman nominated by the Government. All the
major trade unions were represented in Board of Directors of the Apex Society, which ensured
peaceful labour relation. It provides employment for above 6000 labourers offering work for 230
days in a year, particularly in a seasonal industry like cashew nut.

The Kerala Cashew Nut Act of 1981 empowered the Government of Kerala to provide
the trade in Raw Cashew Nuts by the State to the execution of all others by procurement and
sales thereof at fair price within the State. The CAPEX acted as the sole agent of the Government
from 1989 to 1991 and in1991 the Government decided to resume this policy for a successive
fourth year. From 1988 the CAPEX became the authorized agent of the government for the
procurement of Cashews.
INTERNSHIP AT CAPEX

CAPEX opened 60 drying yards with go downs for the collections frying and storing of
raw nuts purchased by the sub-agent according to necessity. Each yard was mannered by a yard
manager assisted by one or more yard assisted.

CAPEX was the first company to start the flexible packing system in the cashews in
Kerala, which by now has been acknowledged as one of the best innovation for the cashew
industry on a whole.

Since they believe that the first level of quality depends on the raw materials, they take
great care in procurement of raw cashew nuts in addition to keeping a strict vigil at every stage
of processing. For over a quarter of a century CAPEX Cashew Industries has earned an image of
product quality which has come to be accepted as the benchmark in global standards.

VISION

Promoting Kerala Cashew kernels globally.

MISSION

1. To organize cashew industry in Kerala.

2. Rendering assistance to affiliated society.

3. To provide employment opportunities to women.

PRESENT SCENARIO OF CAPEX

CAPEX has given continuous working hours to the workers during the last year. CAPEX
had achieved a record working days of 232 days during the year 2012-2013.

Installed 16 electric bormas at factories of CAPEX. As a part of modernization, many of

the factories were fully reconstructed and rejuvenated including installation of new chimneys,
bathrooms, roasting machines, daycares’ centres, etc.

The authorized paid-up capital of the company is 313.I5 Lakh. The roasting capacity of
CAPEX has increased from 40 M.T/day to 60 M.T/day. CAPEX is making profit for the years.
INTERNSHIP AT CAPEX

The company has above 6000 employees including staff. The processing capacity of CAPEX is
above 20,000 M.T of raw nuts per annum.

Operation in a global market place require as an undertaking of the needs of global

customers and knowledge of customers and knowledge of competitors addressing similar issues,
CAPEX is influencing global marketing strategy will continue to be an attractive area for
continuing growth of the Globalization of products is not possible Without modernization of
factories. Globalization intensifies with more and more countries and sectors getting swept up in
its momentum. CAPEX seek to enhance India’s state as in the world market through its belief in
total quality management as a strategy not only for strengthening its current position but also for
gaining access to new markets. Tomorrows emerging markets are today’s initiatives.

MAJOR ACHIVEMENTS OF CAPEX

 As part of modernization 7 CAPEX factories were fully reconstructed and rejuvenated

including installation Of new Chimneys, Bathrooms, Roasting Machines, Day care centres,
yards for drying raw nuts etc.., Reconstruction work at the rest of the 3 factories are in full
swing.
 Replaced old traditional Bormas at our 10 factories and installed 15 Electric Bormas at
factories of CAPEX to reduce and nullify the quality loss; and thus to improve profit
margin.
 Turnover of Rs. 37 corers (08-09) has been enhanced to Rs. 48 corers during the financial
year 2009-2010 and further to Rs.70 corers during 2011-2012.
 CAPEX had achieved a record working days of 232 days during the year 2012-2013.
 As a part of modernization, CAPEX have purchased two modern packing machines:

o Modern flexi packing machines.

o Modern coating and salting machines.

 Maximum Capacity Utilization by increasing Employees strength from 3800 workers in

2007 to 6300 employees in 2010 helped the organization in two ways, by providing more
employment opportunity and by utilizing the entire production capacity.
INTERNSHIP AT CAPEX

 The computerization works at 10 Factories is in full swing. The roasting capacity of

CAPEX has increased from 40 M.T/day to 60 M.T/day.
 CAPEX is now able to procure maximum quantity of Kerala origin raw cashew nuts from
Kannur, Malapuram, Kasargode districts.
 Purchased and installed hand operated Cutting Machine to cut raw nuts at 10 factories of
CAPEX to increase the productivity.
 A project for installing Solar Panels at 9 factories of CAPEX has been approved by the
Government of Kerala with technical assistance from ANERT.

OBJECTIVES OF CAPEX

 To make the best quality cashew kernels produced and packed in Kerala.
 To develop attractive employment under sustainable production practices.
 To promote India's development
 To organize Cashew Industry in the State.
 Rendering assistance to affiliated societies.
 Procurement and distribution of raw nuts.
 Measures to promote manufacturing and marketing of kernels.
 To ensure continuous inflow of raw cashew nuts to CAPEX factories.
 To deliver high quality tropical edible nuts to the world ethically.
 To diversify export products for CAPEX Cashew Industries

FEATURES

 Maintain and sustain healthy relationship with customers

 Exporting high quality cashew kernels
 High brand image
 Measures to enhance quality
 Influence global marketing strategies
 There is enough scope for cashew cultivation and thereby increasing the production of raw
nuts within the state.
 Providing employment to a large number of people
INTERNSHIP AT CAPEX

BOARD OF DIRECTORS

Chairman - Kollayil S Sudevan

Managing director - R. Rajesh
Board members - K G Vijayakumaran Nair
(Addl. Secretary, Ind & secretary RIAB)
T K Soman
(Addl.Secretary Finance)
K Subhagan
Adv. C G Gopukrishnan
Kothethu Bhasuran
Adv T C Vijayan
INTERNSHIP AT CAPEX

PRODUCT OF CAPEX
Cashew kernel is a nutritious and tasty edible nut. Cashew kernels of 100gms constitute
about 600 calories. The cashew kernels are protein, fats, carbohydrates and vitamin. It is a source
of minerals like calcium, potassium, sodium, iron and other minerals which help to prevent
anaemic and nervous ailments. So with the right knowledge it is easy to figure out that the
cashew kernels does wonders to the human constitution. Also cashew has 0% cholesterol.
Table No.3.1
Nutrient value of 100gms of cashew nuts.

CONTENTS % OF NUTRIENT

Water 2.4%

Protein 20.5%

Fat 50.9%

Carbohydrate 18.7%

Energy 611 calories

PRODUCT SPECIFICATION
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Fig No: 3.1

SPECIFICATIONS FOR CASHEW KERNELS

General Characteristics: Cashew kernels shall have been obtained through roasting,
shelling, peeling cashew nuts.

Special Characteristics:
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Table No.3.2

A. Cashew Kernels- White Wholes

Grade Trade Colour/ Count/ Max Broken NLSG

Design Name Characteristics 454gms Moisture Max% NLG
ation Size % Maximum
Description %
W180 White White/pale 170-180 5 5 5(NLSG
Wholes ivory/light ash/ & SW
characteristic together)
shape
W210 Do Do 200-210 5 5 Do

W240 Do Do 220-240 5 5 Do

W320 Do Do 300-320 5 5 Do

W450 Do Do 400-450 5 5 Do

W500 Do Do 450-500 5 5 5(SW)

Remarks: Kernels shall be completely free from infestation, insect damage, mould, rancidity, and
adhering testa and objectionable extraneous matter, scrapped and partially shrivelled kernels also
permitted provided such scraping/shrivelling does not affect the characteristic shape of the
kernel.
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Table No.3.3

B-Cashew Kernels- Scorched Wholes

Grade Trade Colours/ Count/ Max Broken NLSG

Design Name Characteristics 454gms Moisture Max% NLG
ation Size % Maximum%
Description

SW Scorched Kernels may N.A 5 5 7.5(SSW)

Wholes be scorched/
slightly
darkened due
to over-
heating while
roasting or
drying in
drier/borma
SW180 Do Do 170-180 5 5 7.5(NLSG
& SSW
together)
SW210 Do Do 200-210 5 5 Do
SW240 Do Do 220-240 5 5 Do
SW320 Do Do 300-320 5 5 Do
SW450 Do Do 400-450 5 5 Do
SW500 Do Do 450-500 5 5 7.5(SSW)

Remarks: Kernels shall be completely free from infestation, insect damage, mould, rancidity, and
adhering testa and objectionable extraneous matter, scrapped and partially shrivelled kernels also
INTERNSHIP AT CAPEX

permitted provided such scraping/shrivelling does not affect the characteristic shape of the
kernel.

Table No.3.4

C- Cashew Kernels- Desert Wholes

Grade Trade Colours/ Count/ Maximum Broken NLSG
Designat Name Characteristic 454gms Moisture Maximum NLG
ion s Size % % Max%
Description

SSW Scorched Kernels may N.A 5 5 7.5DW

Wholes be over
Second scorched,
immature
shrivelled
(Perivale)
speckled,
discoloured
and light blue
DW Desert Kernels may N.A 5 5 ----
Wholes be deep
scorched,
deep brown,
deep blue,
speckled,
discoloured

Remarks: Kernels shall be completely free from infestation, insect damage, mould, rancidity, and
adhering testa and objectionable extraneous matter.
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Table No. 3.5

C- Cashew Kernels White Piece

Grade Trade Colours/ Count/ Maximum Broken NLSG

Design- Name Characteristics 454gms Moisture Maximum NLG
ation Size % % Max%
Description
B Butts White/pale N.A 5 5 5(SB)
ivory or light
ash. Kernels
broken cross-
wise (evenly or
unevenly)
naturally
attached.
S Splits White/pale N.A 5 5 5(SS)
ivory or light
ash. Kernels
split naturally
length wise.
LWP Large White/pale Kernels 5 Nil 5(SW &
White ivory or light broken into SP
Piece ash more than 2 together)
pieces and
not passing
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through 4
mesh 16
SWG.

Remarks: Kernels shall be completely free from infestation, insect damage, mould, rancidity, and
adhering tests and objectionable extraneous matter, scrapped and partially shrivelled.

Table No.4.6

E-Cashew Kernels- Scorched Pieces

Grade Trade Colours/ Count/ Max Broken NLSG

Desig- Name Characteristics 454gms Moistur Max% NLG
nation Size e% Max%
Description

SB Scorched Kernels broken cross N.A 5 5 7.5(D

Butts wise (evenly or B)
unevenly) and
naturally attached.
Kernels may be
scorched/ slightly
darkened due to over-
heating while roasting
or drying in the
drier/borma.
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SS Scorched Kernels split naturally N.A 5 5 7.5(D

Splits length wise. Kernels S)
may be scorched/
slightly darkened due
to over-heating while
roasting or drying in
the drier/borma.
SP Scorched Kernels may be Pieces not 5 Nil 7.5(SS
Pieces scorched/ slightly passing P &
darkened due to over- through 4 SPS
heating while roasting mesh 16 togeth
or drying in the SWG er)
drier/borma Sieve/4.75m
m I.S.Sieve.

Table No. 3.7

F-Cashew Kernels- Desert Pieces

Grade Trade Colours/ Count/ Maximum Broken NLSG

Design- Name Characteristics 454gms Moisture% Maximum% NLG
ation Size Max%
Description
SPS Scorche Kernels may Kernels 5 Nil 7.5(DP &
d be over broken into DSP
Pieces scorched, pieces not together)
Second immature passing
shrivelled through 4
(Perivale) mesh 16
speckled, SWG
discoloured Sieve/4.75m
INTERNSHIP AT CAPEX

and light blue m I.S.Sieve

DP Desert Kernels may Kernels 5 Nil 7.5(DSP)
Pieces be deep broken into
scorched, deep pieces not
brown, deep passing
blue, speckled, through 4
and mesh 16
discoloured SWG
and black Sieve/4.75m
spotted. m

Remarks: Kernels shall be completely free from infestation, insect damage, mould, rancidity, and
adhering testa and objectionable extraneous matter.

NLSG denotes: Next Lower Size Grade

NLG denotes: Next Lower Grade

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DEPARTMENT PROFILE
Every organization is made up of more than one person will need some form of
organizational structure. An organizational chart shows the way in which the chain of command
works within the organization. The company will be owned by shareholders that choose directors
to look after their interest. The directors then appoint managers to run the business on day to day
basis. The various functions of the organizations are carried out through various departments.
The process of assigning various task or activities in different segments on horizontal basis is
called departmentation. It helps for the proper administration of the company. Like any other
public sector undertaking CAPEX has separate departments and separate executive heads for
each departments. Departments are on the basis of various functions. Each department
specialises in its own area of operations. The various departments in CAPEX are
 Marketing Department
 Production Department
 Human Resource Department
 Finance Department
 Commerce Department
 System Department
 Maintenance Department

 MARKETING DEPARTMENT
The marketing department studies the market and the target customers decide the best
way to reach these customers and work with the rest of the company to help determine the new
product needs of the market.

Marketing is the process of communicating the value of a product or service to customers

for the purpose of selling the product service. It is a critical business function for attracting
customers. In CAPEX the marketing manager is in charge of the organisation’s entire marketing
activities and there for handles formulating, directing and co-ordinating marketing activities. So,
as to influence the customers to choose the organisation’s products over the competitor’s one.
INTERNSHIP AT CAPEX

Cashew is consumed all over the world as a snack or used as a food ingredient. It is
processed and graded according to the quality of the Kernel. But the marketing is having a large
number of small who process cashew and the quality is not right. They are packed under private
labels and distributed. The packet comes to the retail outlets are of low quality but with higher
price. But CAPEX produces quality cashew kernels and is guaranteed.

COMPETITORS
The main competitors are:
 KSCDC
 Prasanthi Cashews
 Western India Cashews
 Vijayalakshmi Cashews
 South Kerala Cashews
 KPT Cashews
 KJN Cashews
 Haseena Cashews
 Nila Cashews

 PURCHASE DEPARTMENT
Purchase department provide a service that is the backbone of many manufacturing, retail,
military and other industrial organizations. The purchasing department will be responsible for
providing the materials, components and equipment required to keep the production process
running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right
quality. Purchase department deals with the purchase of raw materials from various sources. In
CAPEX, raw materials are purchased through inviting tenders from suppliers. 100% of the raw
materials are purchased from outside suppliers. The purchase of raw nut is subjected to the
approval of the Board of Directors, after considering the requirement and finance the Board will
permit the commerce section to place the purchase order, the purchase can he 1ocal or import
purchase.
The raw nuts purchase from the country is not sufficient to meet the requirement of the
company. So they will import raw nuts from African countries. While importing the raw cashew
INTERNSHIP AT CAPEX

the mode of payment is through letter of credit (L.C). As the time of recovering the raw nuts the
company officials will inspect landed weight and the landed quantity to ensure that the right
quantity is supplied as per the terms and conditions.

 SALES DEPARTEMENT
Regarding the sales CAPEX have excellent contacts with several retailers in and around
Kerala enabling them to diversify the product to different places.
India is the largest producer and exporter of cashew kernels in the world. Nearly 50 per cent of
the global export of cashew kernels is accounted for by India. Indian cashews are consumed in as
many as 60 countries all over the world.
CAPEX exports their product to many foreign countries like the United States of America,
European countries, Canada etc. CAPEX has contacts with customers through emails and
directly export their high-quality cashews to consumers. This avoids the commission of 0.5% of
the sale to the agents or other such sources. The demand does not just confine to a particular
period of the year, as cashew nuts are essential in day to day life in several eatables like sweets,
cakes, milk shakes, etc. Hence, the cashew nut processing industry has a perennial demand
throughout the year with demand reaching its peak during festive seasons like Christmas and
New Year etc
 PRODUCTION DEPARTMENT
Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes. When a business completes this process they are able to
achieve customer satisfaction by producing products that are ready to be used and fit for purpose.
The Production Manager is responsible for making sure that raw materials are provided
and made into finished goods effectively. The production Manager makes sure that work is
carried out smoothly, and must supervise procedures for making work more efficient and more
enjoyable.
The production department of CAPEX is responsible for ensuring quality is achieved in
each item of cashew produced. They will need to carry out inspections and implement suitable
quality initiatives. This is one of the major duties of this department because if mistakes are
made on products, customer satisfaction will he decreased or if products are ruined during the
production process it means that the company will have to throw “bad” products away (creating
INTERNSHIP AT CAPEX

waste). Both aspects will lead the company to a loss of profit. Quality assurance will have to be
carried out every day on a number of occasions to ensure that the production process is working
efficiently and effectively.

CAPEX produces,
 Kernels (main product)
 By-products
 CNSL (Cashew nut shell liquid)
 Skin
 Shells

 HUMAN RESOURCE DEPARTMENT

Human resource department deals with the managing and controlling of persons in an
organization. Human resource is the part of the total management of the organization, which
deals with the Human, in respect of their procurement, developing and motivation towards the
attainment of the organizational objectives.

The human resources (personnel) department has staff relationship with other department
managers in the total organization . This department is responsible for advising management
from managing director to the lowest line supervisor on all area relating to the personnel
management and industrial relations. Personnel department also performs various functions of
employment, training and development. It represents management in many of the relationships
that affect organization as a whole. It is also responsible for representing various worker
problems to management.
CAPEX has been playing a highly progressive role in the best sense of the term and it has
fighting to the welfare of the workers and the industry in general. There is a peaceful
atmosphere, lectures the management and the workers can express their ideas and suggestions
through the union members. For this Meetings are conducted every month. A well functional
time keeping system is used by CAPEX. For proper time keeping an electronic punching system
is maintained by the management.
INTERNSHIP AT CAPEX

The HR Manager is responsible for the success or failure of his department in contributing
to the organizational goals. In CAPEX the HR manager is responsible for supervising the
activities of the subordinates, like employment manager. Wage and salary manager, manager for
training and development, manager for industria1 relations. Etc.
The HR department deals with:
 Recruitment
 Selection
 Promotion and transfer
 Salary and wages administration
 Industrial relations

The effectiveness of HR department in CAPEX can be gauged by the fact how smooth they
conduct the negotiations with workers union without the workers resorting to strikes and how
fast the periodic agreement (once in 3 or 5 years) is signed with them. The success of the HR
department should be measured in terms of its contributions to the personnel programs.
 FINANCE DEPARTMENT
The finance department of a Company is the function in a business responsible for
acquiring funds for the firm, managing funds within the firm and planning for the

Expenditure of funds on various assets. The management of finance is essential for the success of
the business.

The finance department of CAPEX is responsible for all the financial aspects of a
company. The Finance Department really has two fairly dissimilar jobs to perform in most
companies: managing the company’s financial sources and recording and reporting all its
financial transactions.

Finance department of CAPEX promote or establish the business, acquire fixed assets,
make investigations such as market surveys, etc.. Develop product, keep men and machine at
work, encourages management to make progress and create value. Finance department ensures
that there is money for day-to-day operations and oversee investments strategies for future
growth.
INTERNSHIP AT CAPEX

Finance department provides information to assist the managers in making strategic

decisions. The finance department is responsible for management of the organization’s cash flow
and ensuring there are enough funds available to meet the day to day payments.

The finance department works with the managers to prepare the organizations budgets and
forecasts, and to report back on the progress against these throughout the year. Senior manager
accounts are the head of the finance department. He looks after budget, audit, finance, store
accounting, costing, and traditional accounting aspects. Senior officer deals with loan, salary,
bonus etc of the employees. Accounting section maintains accounts of purchase, sales and
expenditure. Cost Section prepares cost sheet and evaluate job card. There is an internal audit
section that deals with verification of accounts.

 SYSTEM DEPARTMENT
CAPEX is an Apex society to procure raw nuts, distribute the same to the primaries and yet
is processed by the primaries and market the processed kernels. The CAPEX factories were set
up to provide a livelihood to Cashew labours who were left in the lurch after private factory
owners arbitrarily decided to close down their factories.
 CAPEX has several factories in Kollam, Trivandrum and Allepey districts. CAPEX has
altogether to factories and a head office in Kerala. There is no real time integration with
the factories and head office which results into delay in the operation of factories. Each
factory receives large number of correspondences from inside and outside the
organization which includes processing details from different production, payroll, stock
details, and personal activities. Etc. and this information is required to move to the head
office so as to control the activities of each factory. The tracking of information is
essential to ensure timely execution of work.
 In CAPEX the main operating system (OS) used are windows XP and windows 7. Only
licensed software versions are used in CAPEX.
 MAINTENANCE DEPARTMENT
The maintenance engineer handles all matters regarding the civil and electrical
maintenance and are forwarded to superintend for verification from there to materials manager
for sanction and then forwarded to managing director for final approval. After getting approval
from the managing director, forward back to maintenance engineer for further action. Letters and
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other reports are forwarded to the dispatch by the concerned staff if needed to deliver to the
concerned destination
CIVIL AND ELECTRICAL MAINTAINANCE

 The note is forwarded to material manager Indicating maintenance for factories of Department
 After the site Inspection the maintenance engineering enter the Details
 Maintenance engineer prepare the Reports about the Problems And its solutions
 The proper Estimate is forwarded to the Managing Director
 The managing Director Forwarded t the report to Finance Department
 The fund for the purpose is forwarded to the MD and the sanction note is forwarded to the
Maintenance engineer
 Quotation notice is forwarded
 Details is Vendor Responds are taken and the tabulation statement is issued
 The vendor is Invited For Discussion and the Report is prepared and forwarded to the MD
 Generate order to select the vendor and for worded throughout word section
 Prepare the Bill for Purchase and enter Details In Measurement book.

VEHICLE MAINTANANCE

 Enter Details of Vehicle ,Type, Date, oil Change, quantity ,Insurance and Date, Amount, tax, etc.
 Enter Details such as purpose of Trip, Driver accompany etc.
 Generate trip book cum long sheet
 Prepare an Intend slip to Driver Including Part of Destination, Vehicle number and Kilometer
Reading
 Enter Details such as Date of relief of Diesel, amount and quantity etc. into a Diesel Register.
 Regarding the maintenance of the vehicle the trip book chum long sheet, Intent for and Details for
Diesel Register are forwarded to finance Department and them to audit Department

Bargaining
power of
Bargaining
suppliers
Threats of new
power of
customers
COMPETETIVE RIVALARY

WITHIN AN INDUSTRY
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FINDINGS
l. CAPEX has challenges from the fragmented players In Kerala Market.
2. There is Very good Relationship Between workers and management
3. The main Advantage of the organizations that selling the best Quality of product.
4. The Distributor and suppliers make a frequent visit -enquire and Deliver production Time.
5. The kernels Price changes considerably over year
6. CAPEX is mainly concentrated on product based market strategy
7. CAPEX has appropriate financial resources available from state Government.
8. CAPEX Product occupy a major market share in the Kerala cashew market
9. CAPEX provide with Good packing style.
10. The workers are not satisfied with the training facilities provided by the company
11. Company has sufficient packing Area
12. There are many Distributors for the company .
13. Majority of the employees are not satisfied with the salary package
14. Computerilisation in the organization is on progress.
15. The company provides Better medical facilities for the workers.
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SUGGESSTIONS

1. CAPEX develop International market through a foreign market study

2 .CAPEX should participate In exhibition at various state so they can Develop Brand
Awareness In potential customers.
3. Since there are many competitors in the field the quality of the products must be maintain
properly. Majority of the respondent Purchased product on the basis of quality
4. CAPEX may give more emphasis of states promotion technique such As Discounts ,attractive
offers, gifts etc
5. CAPEX may have to introduce Innovative product from time to time According to the change
in the taste and preference of customers.
6. The Co-operative of the employees and management should be Maintain trained.
7. Implementation of modern equipment is needed to produce efficiently.
8. There is delay in every matter because of the government formalities. This has to be made
faster in proper channels.
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CONCLUSION

The internship at Kerala State Cashew Workers Apex Industrial Co-operative Society
Limited(CAPEX) helps knowing more about the company the different departments and the
sections of the Company is divided into the delegation of authority and hierarchy .Moreover ,The
study through lights on various products and production Process together with the company’s
future plan of expansion .Through this study is to ascertain where the organization stand with
Respect to the society and to see whether it has been able to attain its objectives. Cashew
industries play an Inevitable Role in the Indian economy. it is of great Commercial Important
,Because of the substantial export earnings by India through its International trade Kerala' State
Cashew Workers Apex Industrial Co Operative Society Limited(CAPEX) has been Marching to
the position of the pioneer producer of cashews In Kerala. The Birth and growth of CAPEX with
the state and central governments And its achievements during its short span of existence in fact
is an Inspiring one. The future of CAPEX is very Bright provided of course there are changes in
the Basic policy procurement and Distribution of Raw nuts .The Fact that Both state and central
governments are taking urgent steps to Promote cashew cultivation on the country, argues well
for the future Of an industry .how mainly Depend on Imports, which are dwindling, Because of
the exporting countries to have caught on the idea of Processing of Raw nuts.