AN ORGANISATIONAL STUDY AT STERLING COCONUT OIL & CAKE PVT LTD THRISSUR ORGANISATIONAL STUDY REPORT

Submitted by Resmi Mohan Register No: 713211631117

in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION IN RVS INSTITUTE OF MANAGEMENT STUDIES COIMBATORE 641402 AUGUST 2012

RVS INSTITUTE OF MANAGEMENT STUDIES COIMBATORE -641 402

ORGANISATIONAL STUDY REPORT

AUGUST 2012

This is to certify that the project entitled An Organisational study at STERLING COCONUT OIL & CAKES PVT LTD THRISSUR

is the bonafide record of project work done by

Resmi Mohan Register No: 713211631117

of Master of Business Administration during the year 2012

(Project Guide)

(Head of the Department)

DECLARATION

Resmi Mohan affirm that the summer project work titled

Organisational Study being submitted in partial fulfillment for the award of Master of Business Administration is the original work carried out by me. It has not formed the part of any other project work submitted for award of any degree or diploma, either in this or any other University.

Resmi Mohan 713211631117

I certify that the declaration made above by the candidate is true.

Ms.D. Shalini.,MBA.,M.Phil

Date: Place: Coimbatore

ACKNOWLEDGEMENT

Gratitude is the music of our hearts. A summer project of such a comprehensive

finish

cannot be completed without the help of numerous sources and people throughout the long rugged path of success. We realize this fact and so, we are greatly indebted to all of them and take this opportunity to thank them. First and foremost I would like to thank God almighty whose blessings made me to complete the training successfully. It is a great pleasure to acknowledge my sincere thanks to

Dr.P.V.PRABHA,MBA.,M.Phil.,Ph.D, Director, R.V.S Institution of Management Studies, Coimbatore for providing me an opportunity to get practical knowledge about my theoretical studies. I also thank Dr.J.NIRUBARANI, MBA.,M.Phil.,Ph.D, Head of the Department of Management studies, RVS Institution of Management Studies for providing me an opportunity to undergo this internship training work. I indeed greatly thankful to my faculty guide Ms.D. Shalini, MBA.,M.Phil, thank her for guiding me to successfully complete the training. I would like to express my sincere thanks to FAIJU.V. RAPHAEL , STERLING COCONUT OIL & CAKES LTD, Executive Marketing for the valuable help rendered to me by providing the necessary information, materials and cooperation for the preparation of this summer training. I wish to express my gratitude to all the staff members in the Department of Management Studies for their encouragement for completing this training. Finally I thank my teachers, respondents, friends and parents who helped me in completing my training successfully Resmi Mohan

CONTENTS

CHAPTER

TITLE
INTRODUCTION

PAGENUMBER

1
1.1 ABOUT THE INDUSTRY

1.2 ABOUT THE COMPANY 1.3 OBJECTIVES O THE COMPANY

2
DEPARTMENTS

2.1 PURCHASE

2.2 PRODUCTION

2.3 FINANCE 2.4 MARKETING

CHAPTER.1 INTRODUCTION

1. INTRODUCTION
The organization study undertaken as a part of the curriculum was done at The STERLING COCONUT OIL & CAKES (p) ltd. This study provides an

opportunity to expose the students to an industry / organization and its operational conditions. This study also aims at having a better understanding of various departments and its functioning. This report consists of a detailed study of the history of the company, product profile, organizational hierarchy, various departments and their functioning etc. Sterling Coconut Oils & Cakes (P) Ltd. Thrissur, popularly known asThanima is a private enterprise. Thanima was established with an objective to produce, supply and export fresh and pure coconut oil. The company strictly follows the quality standards prescribed by AGMARK and ISO 9001:2000 Certification to take on the challenges of globalization and international quality standards. Thanima focused on a stable and reasonable return to their produce by integrating the activities of production, processing and marketing. They converted coconut, into value added products like copra and coconut oil and marketed it. There is better satisfaction emphasis is that better the marketing, better the return to the company to consumers. Coconut oil is extracted from the kernel or meat of matured coconut harvested from the coconut palm (Cocos nucifera). It has various applications in food, medicine, and industry. What make coconut oil different from most of other dietary oils are the basic building blocks or fatty acids making up the oil. Being one of the healthiest oilson earth, it is used to treat a wide variety of health problems. Coconut oil improves immune system and energy level, stabilize blood sugar, improve thyroid function and it tastes great, too.

1.1 ABOUT THE INDUSTRY

The English name coconut , first mentioned in English print in 1555, comes from the Spanish and Portuguese word coco, which means "monkey face." Spanish and Portuguese explorers found a resemblance to a monkey's face in the three round indented markings or "eyes" found at the base of the coconut. On the Nicobar Islands of the Indian Ocean, whole coconuts were used as currency for the purchase of goods until the early part of the twentieth century. Coconuts are the fruit of the coconut palm, botanically known as cocosnucifera, with nucifera meaning "nut-bearing." The fruit-bearing palms are native to Malaysia, Polynesia and southern Asia, and are now also prolific in South America, India, the Pacific Islands, Hawaii and Florida. The light, fibrous husk allowed it to easily drift on the oceans to other areas to propagate. In Sanskrit, the coconut palm is known as kalpa vriksha, meaning "tree which gives all that is necessary for living," because nearly all parts of the tree can be used in some manner or another. The coconut palm can be found as far as Norway in the north, where the people have for centuries ensured that the seed germinates under the right, 'created 'conditions. It is believed that the fruit and palm made their way into Hawaii on account of the deliberate efforts made by Polynesian voyagers. The name 'coconut', it is believed, was awarded to the palm and fruit by Spanish and Portuguese explorers .The name was derived from the Iberian 'El Coco', which referred to a mythical hairy monster. The kernel and hair around the fruit probably generated the connection. The suffix 'nut' was added to refer to the seed-bearing palm, as most other tree seeds are referred to in the English language. The name stuck, and today the whole world benefits from the presence of the palm and fruit. The coconut fruit has many food uses for its water, milk, meat, sugar, and oil. It also functions as its own dish and cup. The husk was burned for fuel by natives, but today a seed fibre called coir is taken from the husk and used to make brushes, mats,fish nets, and rope. A very potent fermented toddy or drink is also made from the coconut.

Coconut oil, a saturated fat made from dried coconut meat, is used for commercial frying and in candies and margarines, as well as in non-edible products such as soaps and cosmetics. Although it takes up to a year for coconuts to mature, the trees bloom up to thirteen times a year. Fruit is constantly forming, thus yielding a continuous harvest year-round. An average harvest from one tree runs about 60coconuts, with some trees yielding three times that amount. The coconut's name is a bit of a misnomer, since it is botanically classified as a drupe and not a nut. It is the largest seed known.

IDEAL CLIMATIC CONDITIONS

The coconut palm basically thrives in the world's tropical regions. The coconut palm requires warm climatic conditions for successful growth. The natural conditions that best suit the growth of the coconut palm are: Sandy soil, with a high salinity tolerance Abundant sunlight, with a mean annual temperature of 27C Regular rainfall of approximately 150 - 200 cm, annually High humidity Absence of an overhead 'canopy' growth

GROWING
The coconut palm, Cocos nucifera, is considered a "three generation tree," supporting a farmer, his children, and his grand children. Some trees, which can grow to a height of 60 to 100 feet, even survive all three generations Cocos nucifera, nucifera meaning nut-bearing, has only one species that includes both the tall and the dwarf coconut tree, but many varieties exist within the species.Though the coconut is commonly considered a nut, botanically it is classified as a drupe

and is the largest of all fruit seeds. The coconut consists of the thin, strong outer layer or skin called the epicarp, the thick fibrous layer called mesocarp, and the dark brown hard shell called the endocarp that encases the coconut flesh. Just beneath the end of carp is the testa, the thin deep brown layer that clings to the white coconut meat. The coconut palm is a striking tree with a tall slender trunk that keeps its same diameter from the base to the top. Beautiful, lacy fronds, about 25 to 35 of them, for man umbrella-like structure at the tree's zenith. The tree grows taller by forming new fronds that sprout from the top of the tree as the lower fronds die off. Coconuts grow from the center of the fronds, close to the trunk. Unique to the coconut palm, each tree blooms thirteen times a year and produces all stages of growth at the same time, from tiny new green nuts to fully ripened brown nuts that are ready to fall from the tree.

PROCESSING
After harvesting the nuts and removing the coconut water, workers shell the nuts by hand. The inner skin, a thin brown layer, is cut away leaving pure white balls of coconut meat. The coconut ball is cut open, then washed and pasteurized. Next it enters a shredding machine that has adjustments for creating different size shreds for different customer needs. A confectioner may prefer a finer or shorter shred than a baker. Hot-air ovens or kilns dry the shreddthat is then packaged into large sacks. When the coconut is finally packaged for retail sale, some moisture is added along with sugar and propylene glycol.

MAIN PRODUCT OF COCONUT IN INDIA

1. Tender coconut water 2. Copra 3.coconut oil 4.Row kernel 5.Coconut cake 6.Coconut toddy
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India is the third largest coconut producing country in the world.

Country
Indonesia

Production (MT) 16,300,000 14,500,000 9,500,000 3,033,830 1,950,000 1,500,000 959,000 940,000 710,000 650,000

Philippines

India

Brazil

Sri Lanka

Thailand

Mexico

Vietnam

Malaysia

Papua New Guinea

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COCONUT INDUSTRY IN INDIA

Coconut palms are grown widely in the coastal tracts of the country. The coconut economy of India is in a convenient status. India accounts for 22.34 per cent of the worlds coconut production and is one of the major players in the worlds coconut trade. Currently the crop is grown in 1.91 million hectares with an annual production of nearly 13000 million nuts. Copra processing, coconut oil extraction and coir manufacturing are the traditional coconut based industries in the country.

The price of the coconut in the country is dependent on the prevailing price of coconut oil which is characterized by recurring violent fluctuations. The behavior of coconut oil price is relatively dependent on overall supply of oils and fats in the country. The fluctuation in the price of the coconut oil simultaneously reflects on the price of coconut. The volatile price situation often ends in the negligence of the coconut gardens, leading to attack of pests and diseases and low productivity. Of the range of ways, promoting cost effective coconut based farming system, product diversification and value addition play a crucial role in the stabilization of the coconut oil driven domestic market and is essential for reorienting and engineering the Indian Coconut Industry cost effective and globally competitive. The Coconut Development Board has been playing pivotal role in promoting viable coconut based farming system, on-farm processing and products development. The production and marketing of value added products have started attracting commercial interest and the situation brought rejuvenation in the sector. The market promotional measures undertaken in pursuit of the popularization of health benefits of coconut oil and tender coconut water have attributed a stimulating effect on the less dependency of coconut oil driven coconut economy.

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STATISTICAL DATA OF COCONUT All India State-wise Final Estimates of area and production of Coconut
States /Union AREA('000 Territories Hectares) AndhraPradesh 104.0 892.0 8577 nuts) Production (Million Productivity (Nuts/ha

Assam

19.1

204.9

10728

Goa

25.3

125.3

4953

Gujarat

16.4

138.3

8433

Karnataka

385.4

1209.8

3139

Kerala

897.8

6326.0

7046

Maharashtra

18.0

273.4

15189

Nagaland

0.9

1.2

1333

Orissa

50.8

274.6

5406

Tamil Nadu

370.6

4867.1

13133

Tripura

3.3

7.0

2121

West Bengal

24.9

323.5

12992

A & N Islands

25.5

87.1

3416

Lakshadweep

2.7

53.0

19630

Pondicherry

2.1

27.9

13286

All India

1946.8

14811.1

7608

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STRENGTH OF COCONUT INDUSTRY IN INDIA

! Coconut area distributed in 18 states and three Union Territories under different agro-climatic conditions.

! 3000 years' tradition in coconut cultivation.

! Premier coir manufacturing country in the world.

! Producer of best grade milling copra in the world yielding high grade coconut oil known for its aroma and flavor.

! Large number of farmer's co-operative societies in primary processing and marketing.

! Hundreds of reputed and established private firms in manufacturing and marketing of various coconut products including branded coconut oil in small packs.

! Wide range of coconut products both edible and non-edible available for export.

! Technical know-how and trained manpower for the manufacture of various coconut based products.

! Good number of cultivars / varieties having specific nut characteristics.

! Availability of research support by reputed research organizations such as CSIR, ICAR and DRDO.

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1.2 ABOUT THE COMPANY

Sterling Coconut Oil & Cakes (P) Ltd was established in the year 1953 with an objective to produce, supply and export of fresh and pure coconut oil. The founder store for the company laid at Cherpu, a total remote area in Thrissur District, Kerala. Since its inception the company has marked un paralleled growth that has definitely helped us to emerge as one of the leading and most reputed companies in the field of extraction and purification of Coconut oil. The company originally was established in the year 1983 as a partnership firm popularly known as United Oil Mills with an objective to produce supply and export fresh and pure coconut oil in bulk quantities. Subsequently it was transformed as private Limited Company as is known at present Sterling Coconut Oils and Cakes (P) Limited. Sterling coconut oils & Cakes (P) Ltd, is the creation of an ancestral business family-vallachirakkaran (house) at cherpu. The family business title is Raphael and company ,since its inception the company has earned unparalleled growth that has definitely helped to emerge as one of the leading and most reputed companies in coconut Oil industry under the Brand name THANIMA. The company strictly follows the quality standards defined by AGMARK and ISO 9001:2000 Certification to take on the challenges of globalization and international quality standards. By establishing and implementing a high Quality Management System, the company is striving hard to achieve excellent ceat all levels. Backed by professional management experts and strong network, the marketing of company's products is channeled through distributors and retailers appointed in all the key locations of South India. The silver Jubilee of Sterling was celebrated by spreading the unique fragrance of their prestigious coconut oil 'THANIMA' to Northern, Eastern, Western and Southern parts of India. The company has started a new division to take care of exports and begun to accept the export orders from different parts of world. THANIMA is now available in Europe and Gulf Countries. Presently the management of Sterling is engaged in working out a strategic plan that aims an ambitious expansion programmes to diversify and enter into the wide market of cosmetic products like baby oil and soaps.
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OBJECTIVES OF THE COMPANY

Thanimas Quality Policy starts and ends with the customer as a focal point, understanding the customer's requirements, building systems and processes in place to ensure quality at every stage, and achieving our commitments on delivering the quality products. It is their endeavor to create a culture of Total Quality where continuous improvement of people, processes and products become a way of life. Believe that the foundation of their success is the satisfaction of customers.

VISION
Our endeavor is to create a culture of Total Quality where continuous improvement of our people, our processes and our products become a way of life. We believe that the foundation of our success is the satisfaction of our customers. Our aim is to serve the best quality product (free from all sorts of adulteration) to their distinguished customers.

MILESTONES & RECOGNITIONS

1. 1953 COMPANY ESTABLISHED. 2. 1994(RENOVATION) INTRODUCTION OF NEW TECHNOLOGY. 3. 1998 ENTERED OUTSIDE THE KERALA MARKET. 4. 2001 BRAND NAME THANIMA GOT REGISTERED. 5. 2002 RECEIVED AGMARK CERTIFICATION FROM GOVT OF INDIA. 6. 2004 FIRST COMPANY IN INDIA TO RECEIVE 9000-2000 CIRTIFICATION FOR SUPPLY & PRODUCTION OF COCONUT OIL.
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FEATURES
Thanima Coconut Oil is extracted and filtered using latest modern techniques, each bottle before packing is tested by Agmark Authorities Tested in laboratory set up under Agmark standards to ensure the superior quality of the product and packed in various types of food grade containers and pouches under highly hygienic conditions. As it give high priority for quality standards. This help to focus on high quality extraction and ensure the purest form coconut oil. In spite of the success and growth of this unique product, still continue the same strategy. To avoid any sort of adulteration of the product, the Company has introduced 'Holograms' on each and every item of THANIMA COCONUT OIL sold in the market. 'Thanima' the silver jubilant in the edible oil market and coconut oil exporters, enjoys appreciation from wide range of customers from national and international level for its purity, smell, taste and freshness. Being the first and best among the edible oil and coconut oil Thanima complements a real taste to the food. Studies reveal that consumption of Coconut oil is one of the reasons that help Asians and people from the tropics (whose traditional diet includes coconut oil) maintain their natural health and body weight. The key to weight loss and vibrant health is in eating the right kind of fats (like those contained in coconut oil), avoiding refined carbohydrates, and consuming whole foods. The secret to weight loss is in the chain of molecules that makes up the fat of the coconut oil. Its fatty acids are known as medium-chain triglycerides (MCTs), which burn up quickly in the body. They're a lot like adding kindling to a fire, rather than a big, damp log. Coconut oil improves immune system and energy level, stabilize blood sugar, improve thyroid function and it tastes great, too! Apart from that, using the oil in its purest form is good for the hair and skin. In the coastal regions most babies are massaged with the coconut oil in its organic form. This is also being considered as holistic oil. More and more nations are adopting this oil as part of their lifestyle because of more healthy. .

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PROCESSING OF COCONUT OIL

Coconut palms are grown widely in the coastal tracts of Kerala. Copra, the dried kernel is the chief commercial product from coconut, which is mainly used for oil extraction. Copra normally has an oil content varying from 65 to 72 per cent. The quality of an ISO certified coconut oil is related to the quality of copra for use. Oil can be extracted by: smoke drying, sun drying, or kiln drying, or derivatives or a combination of these three. Then use most modern technology and machineries for this purpose. It is well purified, by filtering process and perfectly refined coconut oils obtained. It is left for natural settling and then filtered in a filter press and then again subjected to micro filtering and thereafter transferred to storage tanks for packing. It is then packed in various types of food grade containers and pouches under highly hygienic conditions. To avoid any sort of adulteration of the product, the Company has introduced 'Holograms' on each and every item of "THANIMA" made available in the market. The oil cake obtained as a by-product will find a ready market as a cattle feed and in the manufacture of mixed cattle feeds or as a raw material for the extraction of remaining oil by solvent extraction method. For health reasons nutritionists and dieticians unanimously promote a best coconut oil diets. They recommend foods fried in this oil, rather than the usual cooking oil. In fact, in Kerala food is commonly cooked in oil from the coconuts. Researchers from the medical field are studying the benefits of the organic form of un refined coconut oil. Initial trials have confirmed that unrefined coconut oil or monolaurin has an anti-viral effect. A minimum of 50ml of unrefined coconut oil would contain 20 to 25 grams of lauric acid, which indicates that the oil is metabolized in the body to release monolaurin which is an antibiotic and an antiviralagent. Among the saturated fatty acids, lauric acid has the maximum antiviral activity. Thanima coconut oil is a quality product of an ISO certified coconut oil suppliers with Agmark standards. Each bottle is tested by Agmark Authorities before packing. It is tested in laboratory set up under Agmark standards to ensure the superior quality of the product and packed under highly hygienic conditions. As it give high priority for quality standards. This helps Thanima to focus on high quality extraction and ensure the purest form coconut oil.
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RHYTHM OF PROCESS
The process starts with the selection of copra from vendors from reputed areas best known for the quality and percentage of yield. The copra from unripe fruits is hand picked before being fed into the drier to eliminate the moisture content to the maximum extent possible so as to give the product maximum shelf life.It is then automatically fed into the cutter for breaking into small pieces to be crushed in the expellers for extracting oil using best modern technology and machineries. The extracted oil then transferred to tanks for filtration process. The oil is then again stored in tanks for further elimination of unwanted particles if any by natural setting. Then under goes filtering in a high frequency centrifugal filter and transferred to tanks ready for packing.The most significant factor in the whole process is that from the point of extraction to packing is wholly automatic and untouched so as to avoid any sort of contamination of the product.

PRODUCTION CAPACITY
The unit is having a production capacity of 60 Mt per day and storage tank scan hold up to about 250Mt of oil. Every care is taken by their lab our force keeping the product, factory and surroundings neat, clean and hygienic. Thanima play a vital part in our activities of all sorts and contribute their might for smooth running of all day to day activities. The administrative wing also deserves special mention for their contribution in all fields of production, packing and distribution of the product.

QUALITY CONTROL LAB

Quality control, lab is located inside the Thanima, This Lab is started functioning from 1963. The Lab function starts with quality assurance of incoming raw materials, assurance finished product quality considering customers needs. The department lab equipped with latest and most modern analytical instrument for analyzing the samples of raw material in process product and finished product.

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QUALITY POLICY
THANIMA,s quality policy is to produce and distribute good quality coconut oil in fresh from, and distribute materials through a quality system, which registers continual improvement by setting and reviewing functional quality objectives aimed to create enhanced customer satisfaction. The quality policy is communicated to all and is viewed periodically for continual suitably. The management and staff are determined and committed to achieve this quality policy and try to work for achieve the goal.

AGMARK STANDARD
The AGMARK standard was set up by the Directorate of Marketing and Inspection of the Government of India by introducing an Agricultural produce Act in1937. The word 'AGMARK' seal ensures quality and purity. Agmark is an a cronym for Agricultural Marketing. This organization used to certify the food products for their quality. This has been super ceded or dominated by other quality standards including the non manufacturing standard ISO 9000.The Department of Agriculture Marketing and Agribusiness has the facilities available at its laboratories for testing food items mainly for the convenience of food and edible oil manufacturers and exporters. THANIMA coconut oil is packed in various types of food grade containers and pouches under highly hygienic conditions. THANIMA the silver jubilant in the edible oil market enjoys appreciation from wide range of customers from national and international level for purity, smell, taste and freshness.

MARKETING MIX
Product Price Place Promotion
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The company has adopted a planned approach for implementing in product, promotion programs based on the market department follows a scientific approach and customers are taken into confidence before implementing any changes in this field.

PRODUCT
The company has designed the product is such a variety that it differentiated from its competitors products. The quality that the company is following is according to the ISI standard i.e. ISO 9001-2000 standard type 1, Agmark standards. The company maintains the standard from the raw materials up to the finished products standard.

PRODUCT PROFILE
ISO 9001-2000 certified management with Agmark quality products Product Catalogue 1 ltr pack bottle 500 bottle 200 ml pet bottle 500 ml pouch ml Pet 1 ltr pouch 200 ml pouch 1 ltr HDPE bottle 500 bottle 200 bottle ISO 9000 2001 certified management with Agmak quality products ml HDPE 1 ltr can ml HDPE 5 ltr can 2 ltr can

THANIMAS packing of small quantities :

1. 1000ml 2. 500ml 3. 200ml 4. 75ml 5. 35ml
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PRICE
The company has followed a unique pricing policy in the industry. The company is fixing their price also analyzing the wholesale price of coconut .After fixing the prices the firm compares the price of medicines to the competitors price and then makes necessary modifications.

PLACE
The company has a unique distribution channels to distribute its products to the customers. In 1953 when it started it has only very few dealers all over Kerala. Now it has became around 500 all over Kerala. Beyond Kerala it is exporting it products to foreign countries.

PROMOTION
The company has different varieties of promotional activities as a part of the marketing. They had enough advertisements through radios and other Medias prevailing in the society. They promote the product through theatre slides, balloons, scooter stepping covers, and advertising boards etc. Every dealer will be getting the dealer boards, posters, stickers, banners, brochures etc. from the company .Some of the most common promotional methods are using inThanima BOGOF (Buy One Get One Free) Price discounting Prize contest

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What makes Thanima Different from other oils

Manufacturing, Filtering 7 packing in own factory. Hollow mark on every pack Aluminum cork to prevent adulteration Quality control Serial Numbering on every Pack Micro filtering Technology to Ensure pure Sedimentation free coconut oil

MARKETS
Marketing is social and material process by which individuals and groups obtain that they need and want through creating and exchanging products and value with others. Kerala is the one of the important area of selling Thanima Coconut Oil major markets are;1. Supermarkets. 2. Private Dealers. 3. Retail outlets 4. Direct selling and Other Marketing and Distribution Network At present THANIMA COCONUTOIL is available all throughout Kerala from one end to the other. The marketing procedure is through distribution spread all over Kerala and other neighboring states. The product is available also in some parts of UAE, Saudi Arabia, turkey, etc, to name a few. Apart from packed products, this also sells oil in bulk quantities in tankers and barrels. Within short span of few years have achieved a remarkable reputation as one of the leading brands.

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COMMON BENEFITS OF THANIMA COCONUT OIL

1. Better taste and aroma 2. Longer shelf life due to moisture control 3. Copra is sterilized by heating and hence no chance of contamination due to bacteria, Fungus and viruses.

HEALTH BENIFITS OF THANIMA COCONUT OIL

Immune System Support Consuming coconut oil may help to fight off disease and illness thanks to its antiviral, antifungal, and antibacterial properties. If you're battling any kind of virus or infection, try taking coconut oil. Cardiovascular Health Although coconut oil is a saturated fat, several studies have found that eating virgin coconut oil does not have adverse effects upon the heart. On the contrary, it appears to reduce the risk of high cholesterol and heart attack. Earlier studies done on coconut oil that found it caused high cholesterol were done using partially hydrogenated coconut oil and not virgin coconut oil and the studies were done on animals, not humans. Researchers found that Polynesians in the Cook Islands whose diet is extremely high in coconut oil have low cholesterol levels and a very low incidence of heart attack compared to people in the rest of New Zealand who do not consume as much coconut oil. In Sri Lanka, a study found that the incidence of heart attack has risen as the consumption of coconut oil has gone down. Thyroid Support Many people believe that consuming extra virgin coconut oil can help with the symptoms of hypothyroidism. While scientific evidence is conflicting in this regard, many people with hypothyroidism have successfully improved or even reversed their hypothyroidism and have been able to stop taking thyroid
24

medication. Remember that it may not work for everyone and it is important to consult with your doctor before stopping any medications. Weight Loss One study found that women who took virgin coconut oil every day had a significant reduction in abdominal fat. Even though coconut oil is a type of fat, it may actually help you to lose weight. Because it contains medium chain fatty acids rather than long chain fatty acids like some other commonly used oils, the body uses coconut oil for energy and does not store much of it as fat. In this way, it helps to boost the metabolism. Staph Fighter When applied to wounds and sores, virgin coconut oil may prevent further staph infection. One study found that virgin coconut oil was beneficial in the treatment of atopic dematitis that was colonized with Staphylococcus aureus. Wound Healing One study on mice found that wounds treated with virgin coconut oil healed faster and showed higher collagen cross-linking than the control group. Skin Benefits Moisturizing your skin is the key to keeping it youthful and healthy and coconut oil can be used in place of lotion for a healthier moisturizer. When coconut oil is used, it also helps to fight bacteria and other skin problems including rashes, dermatitis, acne, wrinkles, eczema, and psoriasis. If you have an area of skin that is irritated, rub coconut oil on the skin to soothe the inflammation and reduce the symptoms. Healthy Hair Coconut oil can also be used to improve the health of your scalp and hair. One way it helps is by strengthening the strands and reducing protein loss during washing. Try applying a little bit of coconut oil on your hair to brush out tangles or massage a tiny bit on coconut oil on the scalp for a silky, strong, head of hair.

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Digestive System Coconut oil has been found by many people to be beneficial for digestive problems such as irritable bowel syndrome, constipation, and indigestion. Coconut oil fights unhealthy bacteria in the digestive system and it also assists in nutrient absorption within the body.

1.3 OBJECTIVES OF THE STUDY

To know about the management and functioning of the organization. To get an idea about this industry To know about organization structure. To learn and understand the vision and goals of the organization. To know about different departments of the organization To know about the working of the organization.

26

CHAPTER.2 DEPARTMENTS

27

ORGANISATION STRUCTURE

Organization structure is the systematic arrangement of the people working for the organization to achieve predefined goals . The structure has two dimensions horizontal and vertical. The horizontal dimension indicates the departments and vertical dimension indicate hierarchy. Board of Management elected by members of the federation is headed by a Chairman. From those members an executive committee and a Chairman are elected. The federation has to get the approval from the board before implementing major decision. Managing Director appointed, is the supreme authority of the federation, normally an outside person. Director (projects) is at the top of the organization hierarchy among the employees of the organization.

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ORGANIZATION CHART

MANAGING DIRECTOR

DIRECTOR

GENERAL MANAGER

PRODUCTION MANAGER

HUMAN RESOUCE MANAGER

FINANCE MANAGER

PURCHASE MANAGER

STORE MANAGER

MARKETING MANAGER

SUPERVISOR

PERSONAL OFFICER

FINANCE OFFICER

SUPERVISOR

SUPERVISOR

SALES OFFICER

WORKERS

EMPLOYEES

CLERKS

WORKERS

WORKERS

SALES

STAFF

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2. DEPARTMENTS
Functioning of Organisation is done by grouping all the work in to major functional Departments. All related and similar works are done in one Department under one executives. The company is headed by the Managing Director and supported by Directors. All these Departments work in Coordination for achieving objectives. Out of these Departments first and last is situated at Thrissur and other three are situated at Cherpu, All these developments are interdependent and interrelated. They work as a team. Their team spirit co-operation ,integration and group efforts helps in the efficient and smooth running of the business, optimum utilization of resources, more economic results and thus provides opportunities for future growth and development.

FUNCTIONAL DEPARTMENTS
1. purchase 2. production 3. finance 4. marketing 5. human resource

2.1 PURCHASE FUNCTION

THANIMA ensures that purchased raw materials meets specified purchase requirements by implementing proper inspection and the test activities by quality control departments in case of raw materials. Ensuring mutually beneficial supplier relationship, ensuring the supply of right quality material at right time, at right place. Fix the material quality and rate to be purchased.

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PURCHASE POLICY
The whole procurement policy is aimed at giving maximum benefits to the farmers. the collected coconut is insufficient to meet the demand , so it collect from the individual farmers also. Thanima also purchased coconut from farmers directly at 6 Rs 40 paisa / coconut. Thanima is constantly trying to increase its coconut procurement by giving more incentives to the primary agricultural cooperative societies that procure more coconut. This will motivate other societies to boost up their coconut procurement. The coconut procurement guidelines are issued time to time , to which concerned officers act accordingly. The finished goods reaches the consumers through distributors appointed in districts and cities.

PURCHASE PROCEDURES
Purchease requisition-It is the document through which the user department requset the purchase manager to make arrangement for purchasing the material required. Each departmental head prepares the purchase requisition report and sent it to the purchase manager. On receipt of purchase requisition report the purchase manager will make necessary steps for purchasing material that has been mentioned in the purchase requisition report. Plans are made by the purchase department about what to purchase, how to purchase, when to purchase and so on. Purchase manager invites quotation for the supply of materials from different suppliers. A meeting of purchase committee held after receiving the quotation. The committee includes General Manager, Finance manager and Marketing manager.

The purchase committee selects the supplier after proper evaluation.

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 The purchase manager then discuss with the suppliers about rate, quality requirements, quantity, delivery time. If both parties agree they will enter in to purchase contract according to supply and payment .

STRUCTURE OF PURCHASE DEPARTMENT

General Manager

Purchase Manager

Supervisor

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2.2 PRODUCTION FUNCTION

The function of production is to convert raw materials in to finished products. It begins from brining the raw materials in to factory to the packing of waste. The role of production finishes only when finished goods are properly packed and kept ready dispatch. The production department function of Thanima is to manage the production and to produce the product according to the demand. Production department undertakes the process of transformation of coconut into coconut oil. A series of processing is used to convert coconut into oil. The machine and equipments in Thanima is installed in straight line basis. The raw material coconut is send to the plant by carriage. when it enters the factory gate it is send to the weight bridge for checking the weight and then it is send to the Godown and unloaded. The Quality department reaches there and do the physical inspection, takes samples of coconut to test whether the coconut is rubbery of fungus affected and also test the moisture content . Based on the standard prescribed by Thanima ,if all the things are right then it is accepted for processing. The production department of Thanima has the following three division.

Storage division. Manufacturing unit Packing and filling unit

STORAGE DIVISION
The storage capacity of Godown is 3000tonnes. The gigantic size of the Godown is not proportion with the amount of coconut procured. Thus almost 50% of the Godown capacity is unutilized. The storage division follows FIFO method of issuing. for processing.

The coconut that comes first goes out first. Thus no accumulation of

old stock is allowed and there by no wastage as a result of decay or low quality.

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The effect of current market price is not at all considered in FIFO

method because the stock assesed now may have been purchased at a very early time with different market price and so it will be difficult to fix the sales price. The Godown section is headed by an officer in charge whose office is situated inside the Godown. He maintains the records pertaining the intake of coconut and also transfer of coconut to the manufacturing division. There are nearly 40 temporary loading and unloading workers at the production plant.

MANUFACTURING DIVISION
The manufacturing unit is headed by a technical officer whose cabin is situated with in the manufacturing unit. The production plan of the unit depends on the market demand of the product. It depends or varies on the festival seasons. More product is required during the festival seasons especially during onam. There are mainly three shifts in the factory. The man power required to run the unit per shift is 16.

PACKING AND FILLING UNIT

Packing And Filling Unit is highly mechanized and here oil is usually packed in different packs. As per the demand the packing division takes oil from the storage tanks and uses it for filling into sachets, pouches and bottles .This section is headed by a separate officer, shift-in-charge whose cabin is located inside the packing unit. Due to this layout , the officer can have a complete view of the unit and effective control over the unit. Man power required per shift is 37.Bottling filling line in the plant can automatically fill and seal bottles .

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HIERARCHY OF PRODUTION PLANT

Plant Manager
Analyst Operator Supervisor (Mill) Supervisor (Filling) Godown/Packing / Spares Assistant Supervisor Lab Supervisor (Maintenance) Shift-in Charge (Mill) Shift-in Charge (Filling) Supervisor (Production Material) Junior Manager (Quality Control) Assistant Manager (Mechanical & Production)

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2.3 FINANCE FUNCTION

Finance functions involve procurement of funds and effective utilization of the same in the business. Control over expenses is ensured by comparing actual expenses with that of budgeted figures. By constantly monitoring various operational activities cost control and cost reduction are facilitated. A well managed financial department is the strength of a good business enterprise . In Keramitra , finance department is headed by finance manager responsible for all the financial transaction, procurement and allocation of funds are the major function of finance department. The major functions of the finance department are;

Accounting. Auditing. Internal Auditing. Statutory Auditing. Government Auditing. Information management Budgeting

The various sections working with the finance department are ;

Budgeting Commercial Accounts Bill Passing Establishment Cash Works

ACCOUNTING
Accounting functions involves day today accounting of several transactions namely receipts and disbursement of money, transactions relating to purchases, inventories (both input materials and finished goods), Production, Sales, other income, fixed assets, salaries, and wages and other expenses such as manufacturing, administration, selling and distribution.
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One of the primary functions of the finance department is maintaining the books of accounts .in this process extensive use of computers are employed for the purpose of feasibility and accuracy. The trial balance is prepared on this basis of the various ledger folios and other transaction details and then profit and loss account and balance sheet is prepared based on trail balance.

BUDGETING
Budgeting is one of the other vital activities undertaken by this department. The budgeting process involves prediction of future sales and the preparation of estimates based on that sales. Data such as future sales are provided by the marketing department on the basis of past sales details and current market conditions. The future production , labour, cash and other resource requirements are detailed in the budget. The budgeting is an all important task and no margin of error is expected in this activity.

AUDITING
The process of internal auditing is conducted by cooperative wing auditor assisted by the finance department and statutory audit by an professional chartered accountant. The finance department of Thanima conducts inspection of concerned transactions details of primary cooperative societies.

PAYROLL
The salary of an employee consists of basic pay, increment, dearness allowance, city compensation allowance which is paid monthly to employees. The payroll will be prepared one day before the disbursement , enabling the employee to see different allocations before he accepts the salary . The mode of payment is through bank or cash counters according to the employees wish. The cash section deals with the payment and receipt of cash. The payment exceeding Rs 20000 will be in cheques. Finance department maintains a full record of all activities in computers . Consolidated records of accounts are made using computers.

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STUCTURE OF FINANCE DEPARTMENT

Finance manager

Assistant manager(accounts)

Assistant manager( Finance

Senior Accountant

Staffs

Accountants

Cashier

.
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2.4 MARKETING FUNCTIONS

The four functions of the marketing department such as product, price, place and promotion are fulfilled through the activities of various personnel engaged at different levels in the department. Each of them has different authorities and responsibilities to achieve the over all objective of this department. * Marketing of products within and outside Kerala State. * Building up of brand image and corporate image. * Maintain both consumer and dealer satisfaction giving adequate importance to improve level of satisfaction continuously.

* Decision regarding proposals for new product line based on the consumer need. * The marketing activities of Thanima have helped to record a continuous growth in sales, both annual and monthly average growth in channels of distribution, dealership as per dealer sales. Marketing Department Marketing Department is controlled by Marketing

Manager, who is assisted by Junior Manager , three Regional Managers and Branch Managers. Below them are the confidential assistant and clerks. For each districts in Kerala , there are two marketing apprentices. the marketing department strategies and efforts helps the federation to increase the sales through the advertising, sale offers/discounts and creating proper distributing channels. Thanima has it all-an aggressive marketing strategy, energetic sales team with an insight into the future.

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STRUCTUTRE OF MARKETING DEPARTMENT

MARKETING MANGER

Assistant manager

Regional manager

Confidential assistant

Area manager

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OBJECTIVES OF MARKETING DEPARTMENT

The main objectives of marketing department are:

Selection and appointment of stockiest/agents/direct sales customers anothers..

Price fixation , fixation of sales commission and overall sales policy. Order evaluation and acceptance of order registers, priority booking registers.

The marketing manager monitors the pulse of the market, competition prevailing in the market , activities of competitors , demand levels etc. he analyses all such situations and then takes effective promotional activities .the assistant sales manager is concerned with general duties like finding out market of VIRGIN oil by field work. The sales officer and other staffs in the department help to strengthen the link with agents.

PROMOTION OF PRODUCTS
Advertisement of KERAMITRA products are mainly done through media and such type of things are done by star communication. Main channel of communication with the customers are :
1. 2.

MEDIA PRINT MEDIA News paper Magazines etc.

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MARKET PROSPECTS
Consumer demand for functional foods organic products 1. Acceptance of herbal/natural medicine as alternative products to

complement, if not replace, synthetic drugs. 2. Increasing demand for safe, efficacious and quality natural therapeutic

products considering burgeoning world population & high cost of drugs. 3. Growing awareness on the value of food and nutrition in preventing

diseases. 4. 5. 6. Aging global population. Increasing interest in natural products, including beauty product line. Increased promotion & advertisement resulting for testimonials

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2.5 ADMINISTRATIVE /H R DEPARTMENT

In THANIMA Administrative department is responsible for general as well as personnel administration. Administrative officer is the head of the department .In THANIMA administrative department is just like the H.R department commonly seen in other organization. The functions of administrative department includes;1. 2.

General as well as personnel administration. Administrative functions , includes attendance monitoring , recording and

controlling absenteeism etc.

3.

Other functions like providing canteen services, ESI , Provident fund ,

accident benefits.
4.

Keeping and maintaining confidential report of each employees for the

purposes like promotion , fringe benefits , training etc.

5. 6.

Maintaining the relationship with workers and organization. To provide sufficient and adequate training to employees when any

technological changes are introduced.

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EMPLOYEE PROFILE
Category Number of employees

Permanent employees Deputation Contract Temporary and casual

95 7 12 147

Employee Compensation Structure

1. 2. 3. 4. 5.

Basic salary. Dearness allowances. Home rent allowances. City compensation allowances. Special allowances.

Medical reimbursement schemes are also available for the workers and gratuity is given in collaboration with Life Insurance Corporation of India. Paying bonus 8.3%(minimum bonus). One day leave as compensation and ESI.

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STRUCTURE OF ADMINISTRATIVE DEPARTMENT

Administrative Officer

Confidential Assistant

Clerks / staffs

RECRUITMENT
Employees are recruited through 1 .By deputation from other department. 2. Through direct recruitment by the board. 3. .On contract basis.

TRAINING & DEVELOPMENT

Staff and employees are given training in office management in association with HRD . Employees are also given computer training .various training programs are given to workers also.

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EMPLOYEE COMPENSATION
KERMITRA employee compensation structure contains:
1. 2. 3. 4.

Special allowance. House rent allowance. Dearness allowance. Basic salary.

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CHAPTER.3 FINDINGS & SUGGESTIONS

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FINDINGS

The total turnover during the year under review improved by 24% compared to previous year

On the profit front, company could perform well in the year generating after profit tax of Rs 92.54 lakhs, compared to Rs 65.32 lakhs of previous year

Company could maintain a good performance. The brand THANIMA have a good reputation among the keralite consumers.

The oil mill were not utilizing the installed capacity. THANIMA gives maximum benefits to the coconut farmers and at the same time provides high quality value added products to the consumers.

Little efforts for product diversification and expansion. Lack of raw material in peak times

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SUGGESTIONS
Sample bottles The product should be mostly available in supermarkets Ensure a steady distribution system Competitive coupons should be provide to the customers Step should be take to make the product available to more places The marketing efforts should be increased especially advertisement and sales Give more attention on export market

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CONCLUSION

The study has covered The Thanima coconut oil manufacturing company Functions, its organizational structure, the various departments of , manufacturing of Thanima oil etc.. its financial activities, HR maintenance, marketing activities and the quality control techniques adopted, promotional aspects and other related marketing activities. Thanima gives maximum benefits to the coconut cultivators and at the same time provides high quality value added products to the consumers. Sterling coconut oil & cakes is committed to setting high quality standards and maintaining them. The brand THANIMA enjoys good reputation in all markets. .While concluding my project I express my faithful thanks to our respected teachers who have helped us from beginning to the end of my project work . I also extend my thanks to the entire staff of Sterling coconut oil & cakes pvt ltd and hope VIRGIN conquers new markets.

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BIBLIOGRAPHY

Journals Annual Reports Company records www.wikipedia.com

http://www.keratechindia.com

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