ORGANISATIONAL STUDY AT

“KANCOR INGREDIENTS LIMITED”

Angamaly South, Ernakulam

Project Report

Dissertation Submitted in partial fulfillment of the requirement for

the Degree of

Bachelor of Commerce

Of Calicut University

By
Jackson Jose

Naipunnya Institute of Management and Information Technology

Pongam, Koratty East

Thrissur, Kerala.
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NAIPUNNYA INSTITUTE OF MANAGEMENT AND INFORMATION TECHNOLOGY

Pongam, Koratty East, Thrissur, Kerala.

ORGANISATIONAL STUDY

CERTIFICATE

This is to certify that the report is a record of the Organizational Study done by
Jackson Jose, second year batch, in partial fulfillment of the requirements for the
degree in bachelor of commerce of calicut University.

Rev .Fr. Paul Kaithotungal Ms. Treasa Parackal Ms. Akhila

Principal Head of Department Project guide

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DECLARATION

I, Jackson Jose, hereby declare that this Project titled “Organizational Study at Kancor
Ingredients Limited” is record of the study by me, in partial fulfillment of the requirement for
the second year degree in bachelor in commerce and which I am submitting this project as a record
of original work done by me and has not been previously formed on the basis for the award of any
academic qualification, fellowship or other similar title of any other university.

Jackson Jose

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ACKNOWLEDGEMENT

“Behind every successful effort there lies a contribution from numerous

sources irrespective of their magnitude. My project is no exception and I take this
opportunity to express my sincere thanks those helping hands whole heartedly”.

It is with great pleasure and gratitude I acknowledge my indebt ness to those who have
helped me in completing this project work. Let me take this opportunity to express my sincere
thanks to all of them, although they all can’t be mentioned here.

I thank my project guide Ms. Akhila, and Mr. Sabu Varghese Faculty Naipunnya Institute
of Management and Information Technology, Pongam and all other faculties of the college for
the helping hand provided by them in making the project a success.

I also extend my sincere gratitude to Fr.Sebastian Kalapurackal, the director and

Rev.Fr.Paul Kaithotungal for providing the support.

I would like to express my sincere thanks to Miss Meera Ramankutty, Sr. Executive of
HR department, Kancor ingredients Limited (Guide for the organizational study) for permitting
me to do this project.

I give my profound thanks to my friends for helping me. Last but not least I wish to
thank my family for their help and support that I needed especially while not at site it will not be
possible for me to complete this project satisfactorily without them.

Above all I wish to thank God Almighty for having blessed me to complete this project.

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CONTENT

No Title Page No
211 Quality Assurance Department 35
Profile of the Industry 7
22 Quality Control Department 38
2 Profile of the Company 8
23 Research and Development Department 40
3 History 8
4 KANCOR an active partner 8
24 Maintenance Department 42
5 KANCOR reliable responsive resourceful 9
6
25 Mission
Material Planning department 9
44
7 Certificates 9
8
26 SWOT
DivisionAnalysis 10
46
9 KANCOR Management 11
27 SWOT Analysis 47
10 Product policy statement 12
28 Findings 48
11 Objectives of the study 13
29 Facilities to workers 49
12 Limitations of the study 14
30 suggestion 50
13
31 Research methodology
Conclusion 15
51
14
32 Functional departments
Abbreviation 16
52

33
15 Bibliography
Information Technology Department 54
17
16 Finance Department 20
17 Commercial Department 23
18 Production Department 25
19 Marketing Department 28
20 Human Resource Department 31

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PROFILE OF THE INDUSTRY

In India, we blessed with a wide variety of culture: spices decorate one among them,
which made this country most favorite for the foreigner. Many people came to our country and
many battles were fought for owning this wealth.

This spices produced in India including pepper, turmeric, chilly, cumin, cardamom,
celery, ginger, cinnamon, cassia, fennel, fenugreek, Dill, cloves, nutmeg.

Changes occurred in technology changed the traditional trade practices and the life
style of the people. In order to meet the demand of food processing industry, spice extracts and
flavors were developed. This new form gave the spices a longer shelf life, easy storage and
more consistency in flavor.

The story of Indian spices back to 7000 years in the past. It is checked history of lands,
discovered and destroyed, Kingdoms build or brought down, wars won or lost, treaties signed
or flouted, flavors sought or offered.

Within the past one decade, the international trade in spice has grown rapidly. An
estimated 500000 tones of spices and herbs valued 1500 million US dollars are now importing
globally every year. An impressive 46% of this supply comes from in India. India’s export of
spices extracts have shown spectacular growth attaining over 50% of global market with in
short span over the past decade, the Indian spices industry has made quality the cutting edge of
its global same plan.

In recent years, export of Indian spices has been taking grant leaps. The Indian export
of spices has crossed the 450 million US dollar mark and has reached 468 million US dollar.
This reasonable achievement is born of a sea change in the industry scenario from traditional
commodity exports; Indian spices have evolved in to a state of the art industry. Absorbing
technology, broad basing its products range developing value added products, identifying
niche markets, forging strategic alliance clinching global collaboration and joint ventures.

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PROFILE OF THE COMPANY

HISTORY
The Mariwala family has been in spice business for over a century. They started
business operator in 1911 a kanji moraji trading in spice like pepper, ginger and turmeric. In
1935, Vallabhadas kanji ltd formed in alleppey, kerala to source and procure spices and copra
in 1947. Bombay oil industries (BOI) established to refine coconut, groundnut and other oils;
pioneering branded packaged consumers’ products like parachute coconut oils, and saffola in
kerala in1970, BOI started oleoresins and botanical extracts division in angamaly kerala.
The whole group restructured itself in 1989, the division into independent companies
for each lines of business.
 Oleoresins division became KANCOR Flavor and Extracts Limited (KFEL)
 Spices experts Organized under Vallabhadas Kanji Ltd (VKL)
 Stearic acids and castor oil remained with BOI
 Consumer production division became Morico Industries Ltd.
In1990, KFEL became a join venture between the J V Mariwala groups (60%) and Mc
Cormick and Co.Lnc 40%. In 1996, the J V mariwala group required Mc cormicks 40%
holding. The groups’ main food businesses are KANCOR, VKL and KM food Ingredients.
In 2007, January 1 the name of the KANCOR Flavor and Extracts Ltd changed to
KANCOR Ingredients Limited.

KANCOR – An active partner in innovation

Product venture partnership they help translate concept into commercially successful
products, working closely with the customer. The task force undertakes the whole spectrum of

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activities from scanning raw materials, developing suppliers, set up lab test methods, pilot
plant scale ups and application traits.
Value chain partnership; being vertically integrated, they can offer complete solution across
various value station along each line of business from farm sourced agricultural raw materials
to sophisticated isolated molecules. Above all, the principle of delivering value for money
drives all programs.
Group synergy partnership; research and development team works in tandem with the sale and
marketing team. They are supporting by modern infrastructure comprising of laboratory
facilitated documentation center pilot plants, test kitchens and tie-ups with international
laboratories and testing institution.

KANCOR – Reliable responsive resourceful

The logistics services provide door-to-door deliveries and management of delivered
cost in keeping with the changing global scenario. Structured procurement solutions offer our
customers total assistance in planning and managing inventory, marketing information risk
management and optimization cost. A LAN/WAN and ERP investment in IT and
communication system ensures efficiency and integrity in information transfer and superior
level of service. Also quality assurance system in credited ISO 9000 by BSI, UK since 1994.

MISSION
To build an international business in extracts oils seasoning ingredients flavors and
fragrances.
 To be an innovative resourceful and profitable company
 To meet customers requirement of quality service and price consistency
 To make 'Doing, business with us easy” and delightful to our customers.

To provide congenial and entrepreneurial work environment. In which employees can

respond to the needs of business and service earn fair rewards and can be satisfied.

CERTIFICATES

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 ISO/HACCP/GMP (Production process)

 US FDA (Bio terrorism Act 2002 Compliance)
 KOSHER (Production)
 HALAL
 ISO 9000 (Q.C)

Today, KANCOR gives complete range of spice extracts, seasoning, mint and essential
oil operations, herbal raw materials and extracts assures no chlorinated extracts thus complying
with legal requirements all across the world. It is today ISO, HALAL and KOSHER certified
for assuring quality in the products. It delivers has the vision to be an innovative resourceful
and profitable company to meet customers satisfaction in quality and price and provide the
best internal environment for all employees.
It allows complete transparency and ultimate customer specification, requirements
satisfaction by specifying the quality of the product manufactured at sources. Standardization
of quality of raw material until its destiny. It has set up additional parameters on product
specification to assure its requirement criteria by the customer.
They also emphasize on cost saving through coordinated with it’s sister concern VKL
for this they apply appropriate technology Co2 extraction, pesticides free with ERP up graded
key scientific institutes and other industry forums enabling clarification of analysis an samples
and other research methodology

DIVISIONS

KANCOR’s businesses are organized and 4 division to provide a clear and synergistic
focus to each business for customer’s service, product innovation and profitability.
1. Oleoresins and extracts
KANCOR products and suppliers spice oleoresins, natural colors and botanical
extracts for all industrial formulation needs. Products are available in liquid parts
powders and water – soluble version.
2. Essential Oils

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The supply a full spectrum of essential oils, spice oils, sweet oil, mint oils and
isolates, menthol, crystals and perfumery and flavor formulation all over the world
3. Food Ingredients
KANCOR has positioned itself as an integrated supplier of custom developed
seasoning, batters, marinades, sauces and dressings. Mayonnaise, flavors for food
and beverages, functional ingredients like lecithins and commodities like
herbs, spices, tomato powder etc. This division is located at Wellington
island Cochin.
4. Botanicals
KANCOR’s botanical division has been set up to expertise the availability of
different spices of medicinal plants, roots and herbs. This will supported all your needs of
herbal and botanical raw materials for medicinal and nutraceutical purpose

KANCOR Management

Mr. Sanjaya Mariwala is the managing director, who is well supported by the
following director, who constitutes the BOD’s.
Mr. Jayanish V Mariwala, Chairman
Mr. Ajay J Mariwala, Director
A team of efficient and experienced manger in the industry assists Mr. Sanjay
Mariwala

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PRODUCT POLICY STATEMENT

Promoting the concept of ‘preventive health care’ eco friendly products, KANCOR
offer a wide range of products meeting customer expectation for service and quality. The range
of products includes oleoresins and extracts oils, natural colors, natural isolates, and trepans.
KANCOR expertise extends to sourcing agricultural materials, cleaning and grading them,
extraction, distillation, isolation and purification standardization of extracts granulation
formulation of specialty blends and products KANCOR product policy aims at

 Establishing strong analytical parameters and quality systems to measure the

presence of active ingredients in the raw materials and deliver the same profile in
finished products.

 Use sophisticated extraction systems which minimize degradation of natural

flavor or color characteristics during extraction and desolvetization

 Developing blends of different levels of active ingredients composition to

match diverse taste, flavor and color requirements

 Ensuring final products have a minimal sludge, waxes and physical impurities
through improved selective extraction and filtration systems.

 Developing standardization blend with minimized separation and uniform

dispensability in dry and oil based media as well as confidential customized blends.

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 Tracking consistency of quality through systems for traceability or raw material

and batch and customer history.

 Incorporating parameters of HACCP for product safety into ISO 9902

registered quality system

 Providing extracts using non-chlorinated solvents and food grade, KOSHER

diluents and emulsifiers.

OBJECTIVES OF THE STUDY

Primary Objective

 To study about overall functioning, business strategies and corporate behavior of

KANCOR Ingredients Limited.

Secondary Objectives

 To familiarize with a particular business organization.

 To disseminate with different departments in the organization and learn their

structure and functioning.

 To give suggestion if any to the company

 To study about different benefits available to human resources.

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LIMITATIONS OF THE STUDY

This study is not free from limitations. Following are major limitations of this study: -

1. Time period was less.

2. Cannot go deeper into the functioning aspects of Kancor Ingredients Limited.

3. Getting company's willingness to implement the proposed technique needs

strategic decisions. This is time consuming process.

4. Company was not ready to provide data soon. They did after a lot of thoughts
and proper convincing that this will be using for academic interests.

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RESEARCH METHODOLOGY

To conduct this study, different methodologies have adopted. The single most
important one is observation method. In addition to that, I conducted interviews and made
interaction with managerial staff, workers to learn from their experiences. Besides that, I
walked through various documents, manuals, boards, and computer systems to understand more
about procedures and systems.

DATA COLLECTION
Primary Data
Primary data are those that are collected for the first time and thus they are original in
character. The primary data collected through direct personal investigation. The following
ways adopted...

1. Observation
2. Interviews
3. Interactions

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Secondary Data
Secondary data are those data that has already collected. The main secondary sources
used for collection of data are:

Website of the organization

Documents
Organization manuals

FUNCTIONAL DEPARTMENTS

KANCOR like manufacturing concern with 125 years experiences have many function
performed in the organization. The divisions in the company help in performing to get the
desired result. KANCOR has 11 departments. Each department function separately even
though in an inter-related way, to offer product quality and customer service which meet
quality of the most demanding standard of acceptability in the world food industry.

1. Information Technology Department

2. Finance Department
3. Commercial Department
4. Production Department
5. Marketing Department
6. Human Resource Department

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7. Quality Assurance And Quality Control Department

8. Research And Development Department
9. Maintenance Department
10. Material Planning department

INFORMATION TECHNOLOGY DEPARTMENT

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1. IT DEPARTMENT

The IT department is working under the control of Managing Director. It can called
brain as it controls the entire system. Destruction or failure of this may end up all the activities
of the organization. Therefore, IT department is very important in KANCOR. Technology of
KANCOR Ingredient is advancing day by day with the help of this system.

The system department provides the application software called Lotus Note for
Email access and other communication of difference department need and nature of
processing. It is also training for all employees who have to work with the help of
computer.

It also helps in report creation, which has to done at various levels of the organization
for different purpose. The department helps to organization to move in the world of electronic
and IT age. Its use differs in different department. For example in personnel and administration
used to maintain payroll and workers details such as personnel details, attendance, leave etc.
For this purpose, they are using software. The Payroll software has developed in FoxPro.
Another advantage of this department is, they develop application software for their on
purpose.

In addition, it helps to keep an inter-linked connection in the organization. All

employees can contacted by sending message to which eliminate the efforts of
sending messages by the traditional way. So because of this, it become so easy to
contact any employee in the organization and these is no difficulty in sending any
notice to all the employees.

The department makes the whole data processing in centralized format. The
department activities run through the organization in data collecting, processing,
storage and retrieval.

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The activities are

 To give technical support to end users
 Provide software and Hardware support to each department
 Training to new employees about software
 To take the backup of the database and stores into removable
Hard disk

The servers are

 Database Server
 Communication Server (Lotus)
 Tally Server
 Thin Client Server
 File Server

The advantages are

 Centralized storage of the data
 Easy updating of the data
 Easy retrieval of the data
 Reduce the time of the data processing
 More securities to the data by providing ID and password
 Setting the priorities to each department

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2. FINANCE DEPARTMENT

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FINANCIAL DEPARTMENT

Financial department will handle all the financial activities in the company like
maintain the record of receipt and payment. Accountant maintains the sales records,
maintaining the record from buyers and customers. The finance department handles taxation
and insurance. The finance department also deals the legal matters. It also does foreign bill
discounting through their foreign exchange bank. Rising of working capital sundry debtors’
management, management of loans etc. have done by the finance department. The company
has a very strong position. It does work together with the MIS department for preparation and
Updating of profit and loss account, final account, cash flow statement and fund flow
statement.
Activities of Financial Departments
 Management of all inflows and outflows of cash
 Accounting of the transaction and undertaking all type of statutory audit
 Works related to income tax, sales tax, company law etc.
 Borrowing money from financial institution
 Preparation of budget and reporting the variance in any proposed
schemes related to buying or selling of the products
 Costing of the products
 Settlement of employees account and payment of remuneration as per
the memos received from the personnel departments
Financial Department has three divisions
1) Finance Division
The main function of finance division is arranging the money for the
company operations; their division arranges money for company operations by

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credit from bank, issuing shares, debentures, loans, retained economy etc. This
company mainly depend two types of credit facility from the bank. They are

a) Packing Credit (per shipment credit)

Packing credit manually given to exporters. It has low interest rate. Its
help the production and packaging for the shipment process.
b) Foreign Credit (Post shipment credit)
Credit should liquidate with in 6 months by producing the export
documents.
The company issues two types of shares, that are Equity shares and Preference shares. The
Mariwala family members subscribe all shares.

2) Accounts Division
The accounts department using tally software for their accounting purpose.
Accounting clearly records all the transaction and updates all necessary files. There
records are to be maintained in the accounts department. They are maintaining
 Sales Book
 General Ledger
 Personnel Ledger
 Material stock ledger
 Balance Sheet

3) MIS Division
The main function of this division is to prepare budget report. MIS division
collects data from all departments, which is using for budget preparation. MIS also
doing the activities for collecting actual results and comparing with the data has

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and according to the budget is preparing. It helps the financial to reduce deviation
of actual results from budgeting.

3. COMMERCIAL DEPARTMENT

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COMMERCIAL DEPARTMENT

As a manufacturing company, the most important function is the sourcing and

processing raw materials. The commercial department concentrating on logistic,
advance licensing and buying of raw materials. This department report to CEO. The
department functions inter locks with the production department.

This department collecting information about global availability of the raw materials.
The main raw materials of KANCOR are Pepper, Chilly, Turmeric, Celery, Nutmeg, Nut
makes etc.Raw materials are collecting from local market as well as imported from different
countries like Vietnam, Sri Lanka, Indonesia and Malaysia. Almost 95% of pepper has
imported from the Sri Lanka and more than 80% of Ginger from Indonesia.

In the case of new suppliers, firstly they take a sample from the customers. Then the
quality assurance department checks the quality of the raw materials. The quality of the raw
materials is good then they pass to production department for a trail lot. If trail lot is
acceptable, supplier has added their supplier list.

Main functions
 Logistics
 Advance licensing
 Buying raw materials

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The company has the storage capacity of 300 to 400 million tons of goods. Go downs
are meant for 3 types of goods. Raw materials, intermediate goods and finished goods.
Samples sent by the customers are checked by square rooted sampling technique, that is square
rooted number of containers plus one are selected and the samples are checked to verity
whether the meet the standard or not. (For ex: The company got a 100 kg of raw material.
They have taken 10kg plus 1kg for checking.). The company is never ready to make
adjustment with the quality of the goods. It concentrates on active ingredients and not on
appearance.

PRODUCTION DEPARTMENT

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PRODUCTION DEPARTMENT

The production department is the most vital one as regards KANCOR. Both
management and staff workers facilitate here and they maintain need of customer
satisfaction. This department has inter-linked with commercial and personnel
department in particular with the backup of marketing department. The department
has the function like crude manufacturing, maintaining efficiency in production and
manpower management related to the production etc.
The basic work of this department has complimented with plants installed in
the site with its evident features as below.

Plant and capabilities

 Processing of 10000 MTA of raw materials

 Mint/derivatives contract facility
 Solvent Extraction Plant (SEP)
 Water extraction facility for herbs
 Steam distillation plant for spice oils
 Mustard plant

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 Seasoning production facility

 Lab facility
 Isolation units
 Platter spice products unit
 Finished goods storage (FGS)

Manufacturing Process
Raw materials inspection:- The raw material has checked whether it can give specified
find products. This happens at the initial vehicle and materials checkup and the lab analysis
with the final decision of material quality by the commercial department.

 Pre-cleaning:- This has done for the initial oil extraction in spices like
pepper, celery

 Pre-Treatment/sizing:- This process involves flaking, grinding or

pelletisation before putting in to the extractor.

 Extraction:- The material has mixed with the solvent, a mixture of

acetone and hexane in proportion depending on the spice, and it done using heat by
stream. The time for each extraction blow-off will be done in extraction and spices will
be removing

 Evaporation:- Where the solvents are taking out from the extracts of
spices this sage. This process has done through the evaporation system. Where the
solvent is evaporated by using a method of film evaporation and is fed into decanter

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 Desolventisation:- Will be done using steam and for final

concentration, it is fed into the stripper where the oleoresin is almost without the
solvent content is it.

 Blending:-This is the process where the actual specification of the

customer is meeting. Material will be blend in blending tank, if the material net

customer specification. Chemist will take samples at different stages of production and

analyze the sample

 Filling and Packaging:-This is he final stage, where the packaging

material after quality check re taken and are loaded with the final material ready to ship
to the finding destiny

Labeling And Dispatching

KANCOR labeling system ensures that both inner and outer packaging carrier a
standardized label incorporating all necessary information to meet all standard custom and
purchase requirement. Customers specify data can further incorporated on individual request.

MARKETING DEPARTMENT

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MARKETING DEPARTMENT

Marketing is a function, which convert the customer needs with the specification, into
the desired product. We have the benefit of an unbroken tradition in spice extraction industry
over 125 years. The company’s long experience in this field earned customers from almost all
over the world. Company has markets abroad than in this loyalty. It has market all over the
world like Germany, US, Thailand and Switzerland.

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KANCOR offer specialized services such as crop reports and economic scenario
updates to help customers in arriving at strategic buying decision. Technical resources are
always available for resolving problems through innovative cost effective solutions.

Frequent market studies have done in order to get the pulse of the market. Marketing
strategies adopted by a company is one of the important factors that help to achieve success in
business. The General Manager studies the projects and makes necessary improvement.
General manger in Mumbai Office, he conducts studies and development activities food
ingredients shows, trade fares etc are some of the technique used for capturing the market and
it has agent’s places. Even company has warehouses in US, Australia and Korea. KANCOR’s
global network strives to offer comprehensive customer support by offering a package and
quality and services.

Marketing departments receives enquiring from customer with their specification. They
work with all new customers on pre shipment quality inspection and in produce where there
might exist wide range in terms of quality parameters.

KANCOR marketing Chain

Suppliers Kancor Customers

(Raw materials) (Production)

Marketing department’s tries to coordinate with the potential customer from an easy
stage on year’s requirement, supply by entering into short/long term contracts to ensure that
customer needs met and protect them from the variations in price quality and supply

Functions of marketing department

 Interacting with the customers.
 Conveying the customer needs to the product and R&D department.
 Analyzing the advantage in business with a particular customer.
 Dealing with customer complaints.
 Conducting shows all over India.

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 New product introduction.

 Encouraging customers to communicate.
 To meet C-Sat (Customer Satisfaction).
PRODUCTS
Extracts Product List
 Spice Extracts
 Blended Extracts
 Specialty Extracts
 Water Dispersible Extracts
 Natural food colours
 Colour mixes
 water dispersible colours
Essential Oils Product List
 Spice Oils
 Mint Oils
 Sweet Oils
 Essential Oils
 Aromatherapy oils
Botanicals Product List
 Raw Botanicals
 Herb Extracts
 Medicinal Plants
 Organic spices & Herbs
Nutraceuticals Product List
 Anti-oxidants
 Natural Isolates
 Botanical Extracts

6. HUMAN RESOURCE DEPARTMENT

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HUMAN RESOURCE DEPARTMENT

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The personnel manager and there officers to manage the whole of the activity
and carry out the function with blend of industrial relation and human relation
activities, the time office manage any information on monitory and non monitory
related aspects of every employee, whether is a workman or the management staff in
company.
The department has based up by information systems to maintain payroll,
employee details, accounting details, pertaining to ESI, provident fund, health
insurance schemes and other benefits of the employee. They also take care of the
leave and attendance making and salary issues with allowances concerned with each
employee.
Any matters concerned with the employee are in the system and maintained
manually. Whether is any personnel details conduct, complaints, enquiry details are
all in system and record in shelf. This is to maintain the proof of each action
undertaken for or against each employee.
The department works for the well-being of employees by a healthy
relationship and thus helps to attain the organization all as well as individual goals
easily. Functions of this department have backed up by the information system to
maintain payroll, employee details, provident fund etc. Main functions of this
department are procurement, training to workers, compensation, maintain employees
problems. The activities of this department can be classified into, mainly four groups.

Human resource has four divisions

1 HR Related
The main HR related functions of these departments are
i. Training And Development
They give both on the job and off the job training. Lower graded
employees are giving on the job training. Company sends its representatives to
the conference and other trade shows and utilizes this information to boost the
working of KANCOR’s function.
ii. Competency, Learning diary and training calendar they
observe and analyzed competency in each individual, it includes

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 Analytical
 Behavioral
 Functional
 Potential
Anglicizing these factors, a learning diary of each individual has prepared in
which they areas to be given training is mentioned according to the needs for
giving training, training calendar is prepared.
iii. Performance appraisal
Performance appraisal twice in a year or annually. Each person’s value
traits, professionalism and personality are evaluating. Both apprises and
apprise makes the evaluation. The form of this contains information like name,
number, designation, attendance, during the system-generated period.
 Skill and talent assessment
 Key result area
 Success factors and failure factors
 Overall performance
iv. Grievance Handling
There is redressed forum working for this purpose. The HR manger
meets the employees and discusses their problems, which define them from
working efficiently.
v. Policy management
The function includes introducing new concept and process relating to
international travel policy, appointment policy, increment policy etc.

2 IR Related
KANCOR have a three category of workers
 Management Employees
 Skilled workers
 Unskilled workers

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The department has imposed with the duties of renewing agreement between
the workers. It helps in establishing and maintaining true industrial democracy,
which is a prerequisite for the establishment of a socialist society. In addition,
this helps the management both in the formulation of informed labor relation
policies and in their translation into action.

3 Personnel and administration

This department keeps every details and information relating to each
personnel in the organization. Recruitment of employee’s eligible done by
vacancies method such as campus selection, placement agencies and through
advertisement. High-grade employees are recruiting with the help of placement
agencies.
This department also functions the activities like salary fixation, leave
management, annual increment etc. The attendance has done using a system of
card entry for the workers and for the staff in the attendance chart.

4 Legal Related
KANCOR have the maintenance of good environment for the employees
and employers. The department provides legal support to the organization. The
incentive schemes provided to the employees are two types profit-linked incentives
schemes for the staff and products linked for the workers. These product linked
incentives are given monthly white other is given yearly
The loans provided to employees are
Company loan: a sum of rs1500/- is given and recovered within 10 months
through installment. It has deducted from the monthly salary.
Festival loan: A sum of rs2000/- have given which deducted from the salary.
Housing loan: an amount of rs30000/- is enchased and is reversed as 100
installments.
Special loans: this is the additional facility, which server any special purpose
of the employees.

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4. QUALITY ASSURANCE DEPARTMENT

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QUALITY ASSURANCE DEPARTMENT

KANCOR aims at meeting customer expectation for service and quality. Company
products are kosher certified and packaging UN approved. All the function of this department
is according to the ISO standard system.
There is one manager for the quality assurance department. They are accountable to
CTO. Department activates include day-to-day quality control, which is very vital for the
success of the company.
The department works in association with commercial department. All activities of
what commercial department needs to be taken as it requires specification and what actually
the customer needs from them is taking after the lab consent, even though at many situation it
needs to be discarded due to the varied specification of customer.

The main analyzes works of quality assurance departments

 Guarantee for products parameters with certificate of analysis

 Microbiological and toxicological data on request

 Viscometer based flow profiting for oleoresins

 GC profiling of volatile oils

 Microbiological testing

 Sensory profiting and application test as per request

 Pesticide residue and toxin screening for spices

Quality check
Raw material
Cleanliness: - for checking whether the raw materials contain direct or other tested by
visual check.
Moisture: - 8-12% moisture has specified

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Active components: - Checking the proportion of oil, pungent fraction, color etc.

Solvent
Purity of the solvent checked before stocking. For the different solvent, the minimum
level required differs.

The levels are as follows

 Acetone < 25ppm
 EDC < 25ppm
 Hexane < 25ppm
 Methanol < 50ppm
 Isopropyl alcohol < 50ppm
 Ethylene chloride < 30ppm

Product
Physical properties --- specific gravity, refractive, optical rotation
Composition ---- GLC (Gas Liquid chromatography) oils has mainly trephine
components.

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7. QUALITY CONTROL DEPARTMENT

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QUALITY CONTROL DEPARTMENT

This department functions along with quality assurance with a manager and asst.
manager along with two executives. Quality control focuses on the final product. It will
monitor the quality of the final product. Marketing department will be forwarding the customer
specification to the quality control department and it will be checking whether the final
product is meeting the customer specification.

Advantages of quality control

 Reduction in cost of production

 Maximum utilization of resources

 Consumers satisfaction

 Minimize variation

 Increase in sales

 Reduce wastages

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8. RESEARCH AND DEVELOPMENT DEPARTMENT

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RESEARCH AND DEVELOPMENT DEPARTMENT

The research and development department does a major part of analysis for the
company’s production. They do work on sample testing chemist does the work that support the
essentials oil, botanical and the nutracenticals division. They also analyze on solvent that needs
to be using for extraction and decide on their effective mixture.

The functions of there departments

 New product development

 Adding more values to the existing product

 Process improvement

 Cost reduction

 Improve the product quality to meet the customer needs

The request to the research and development can be internal or external. The
internal request is mainly from the production department. The research and development will
take appropriate steps in that request. The external request will be from the customer. The
customer requirement forwarded from market department, Research and development will
analyze the customer needs and decides whether to accept or reject that offer. If the Research
and development accept the offer, they will analyze the requirement of the resource and do
review operation in the pilot plant.

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9. MAINTENANCE DEPARTMENT

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MAINTENANCE DEPARTMENT

Maintenance includes inspection, check up, lubrication, planning and scheduling,

training to maintenance staff, storage of space etc. maintenance department divided in to four
departments.

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1) Mechanical department
2) Electrical department
3) Projects
4) Utilities

Mechanical department
Mechanical department handle repair and maintenance of mechanical equipments like
flakers, centrifuges, pumps, mill, pulverize, grinder etc. this department mainly concentrates
on preventive maintenance to avoid unnecessary breakdown and smooth running of
equipments.

Electrical department
Electrical department handle maintenance of electrical equipments like motor and other
electrical devices. Monthly preventive maintenance schedule has followed for the better
performance of all electrical equipments.

Project department
The functions of project department are new plant designing, erection and existing
plant expansion, civil construction etc.

Utilities
In this unit three plants are there
 Boilers
 Refrigeration
 Effluent treatment plant

10. MATERIAL PLANNING DEPARTMENT

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MATERIAL PLANNING DEPARTMENT

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Material planning department to be precisely is the turn wheel of the company

therefore, does invite the basic attention of anyone in the organization.

Functions of material planning department

 Production plan

 Purchase plan of oleoresin and spice oils

 Packing material planning

 Inventory management

 Emulsifier finished good stores

 Dispatch Planning

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SWOT Analysis

Strength
 Brand name.

 Quality extracts.

 Better stability in the market.

 Goods and experienced work force.

 Environment friendly workers.

 Careful selection of raw material.

 Eco friendly product.

 Skilled human resources.

 No wastage of product.

 Duration of product.

Weakness
 Trade unionism among workers.

 No direct contact with the final customers.

 Seasonal nature of raw materials.

 Suppliers are spreading all over the world.

 Lack advertisement.

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Opportunities
 Since, the market to be captured more as company has low market
shares, forward integration.

 Tremendous scope for growth in Indian market.

 Can adopt new technology for the production.

 Product diversification.

Threat
 Agriculture base countries like China; Taiwan etc are company to the
stream government policy.

 Competition from its rival companies.

 Large number of Products.

 Seasonal nature of raw materials.

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FINDINGS

A declining trend was noticed in pepper industry.

2. The issue of duty free license to specified value
addition norms and export obligations has been advantages to the company.
3. Ginger oil export has been declined.
4. Japan was emerging as a major trading
competitor for pepper oil and USA is the major buyer of ginger oil.
5. Financially sound.
6. Good industrial relation.
7. Qualified and skilled workers.
8. Environment friendly.
9. USA is the major buyer of ginger oil.
10. Long-term experience in the market.
11. Majority of employees were satisfied with the
working condition.
12. The company have good R&D department.
13. The company has centralized computer system.
14. Employment to the local people.
15. Welfare facilities to the workers
16. Pepsi, Nestle, Hindustan unilever ltd, Wipro,
Dabur are the main customers.

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17. A k Flavours and AVT are main competitors.

FACILITIES TO THE WORKERS

 Canteen facility to every one weather it is person on top or the third grade worker has
food at same price.

 Scholarship and other recreation facility followed by the Kancor for the children of
employees on the account of the appreciation in studies.

 Kancor day celebration is the part of formal meeting among all employees.

 Kancor have the restroom and indoor games for workers to take away the boredom of
works.

 All management staff is also taken care of their major expense like the telephone and
car and its maintenance by the company. If in the case an employee in any money from
his pocket of the company need, he is reimbursed.

 Training facilities and development activities like seminars meetings are arranged
inside the company.

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SUGGESTIONS

1. Management should consider the performance of employees for taking

promotion decision.

2. Company should exploit the domestic market.

3. It should expand export opportunities.

4. The organization should provide better in recreation facilities to the

employees like reading room, library, culture association etc.

5. The company should increase the sales promotion activities in the

Indian market.

6. Company should improve the logistic orientation and try to have a

logical vision and turn its efforts to meet these visions.

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CONCLUSION

KANCOR ingredients Limited are one of the worlds leading manufacturing of spices,
oleoresins, spice oils, essentials oils and natural colors. KANCOR ingredients have a
significant strength in production research processing capabilities and managerial skills. The
company was able to meet international standards and to satisfy its customer’s requirement by
its strict quality control and customer oriented management style. Up compromising system
quality management has enabled the company to obtain ISO standard and HACCP
accreditation from BSI.
Spices industries face a major challenge like productivity challenges, quality
challenges, value addition challenges, and equity challenges etc. New frontiers of science and
technology particularly Biotechnology, information technology, spice technology and
renewable energy. Technology will play a dominant role in future spice industry. There is
urgent need to more research, dissemination and population of the traditional use of the spices
in India.
KANCOR has a significant strength in a production research processing capabilities
and managerial skills. Armed with all these, KANCOR has urged, will ahead in the
international market and will prove a force to reckon with in the future.

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KANCOR provided to the society like employment to the local people in the unskilled
are and welfare amenities to the workers as well as to their families company is working under
the strict rule to environment protection status, disposing waster is scientific manner and
keeping environment friendly surrenders.
KANCOR financial performance is an indicator of the company success. One of the
important assets of KANCOR is the skilled human resources. The general awareness of the
workers is very high. It enables to improved efficiency in production and value addition to the
products. Here we can conclude that with its excellent management style and good industrial
relation and KANCOR is growing like big tree.

ABBREVIATION

BOD - Board Of directors

MD - Managing Directors
CEO - Chief Executive Officer
CTO - Chief Technical Officer
GM - General Manger
AM - Assistant Manger
AMP - Assistant Manger Path
F&A - Finance and Accounts
RM - Raw Materials
AM B&F - Assistant Manger Blending and Finishing
BMD - Business Development Manger
MP-E - Assistant manger Path engineering

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EOD - Essential oil Division

AM-ANA - Assistant Manger Analysis
MGR PERS - Manger Personnel
AM-ADD - Manger for business development additives
BD-NUTRA - Technical Division Nutraceuticals
EDD - Electronic Data Processing
PD - Production
IR - Industrial Relation
PA to - Personnel assistant to MD
NPD - New Product Development

TR - Trainee
W - Workers
MTR - Management Trainee
C - Contractor
ISD - International Standard Division
HACCP - Hazaious Analysis critical control point
ERP - Enterprise Resources Planning
MTA - Metric Tone per Annum
HPLC - High Perfoffilance Liquid Chromatography
GC - Gas Chromatography
R&D - Research and Development
LTA - leave Traveling Allowances

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BIBLIOGRAPHY

 www.kancor.in

 www.spicesboard.com

 Primary data’s like observation and face-to-face interview.

 Data’s from previous project reports done at KANCOR.

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