CHAPTER -I

OBJECTIVES
The Summer Internship training focuses on the following objectives:

To understand the origin of the company

To study the organizational structure of the company

To understand the role of various functional departments in the organization

To understand the organizational practices and identify the challenges faced by the
organization to achieve the organizational goal

CHAPTER -II
2.1. INTRODUCTION TO THE INDUSTRY
Kitchen appliances and home appliances have become an inevitable part of our life. In fact,
our lives are weaved into a plethora of such gadgets which are designed to make our lives
more enjoyable and hassle-free. We simply cannot live without the aid of appliances like dish
washers, cooking related gadgets like juicers, blenders, baking instruments, air conditioners,
laundry machines and the like. A day without electricity can pluck out productivity from our
life as most appliances are dependable on it for functioning.
Home appliances play a major role in the domestic life of the modern man. It has always had
a significant place in the life of man ever since the Stone Age when man began to use tools.
Today, the twenty-first century human beings use more sophisticated tools and home
appliances for his daily life. The more we try to make our life convenient and comfortable,
the more significant the role of appliances turns out to be in determining the lifestyle of man.
The market of kitchen and home appliances is ranked among the forerunners in industry
annals. The variety of such appliances can also astound many. There are appliances suited for
multiple needs. Laundry machines and dishwashers, vacuum cleaners etc have taken out a lot
of physical strain from a home maker. In this age where time is money, we cannot fuss
around our kitchen and home performing daily chores throughout the day. This is where these
ubiquitous creations come in handy. Kitchen appliances have made our lives infinitely easier
than that of our ancestors. Its hard to imagine getting by without using the gas stove, mixer
grinder and refrigerator. But it has not always being this way. Through their history, kitchen
appliances have taken years of development to perfect, and improvements are being made to
all of them even today.
In the West, a modern residential kitchen is typically equipped with a stove, a sink with hot
and cold running water, a refrigerator and kitchen cabinets. Many households have a
microwave oven, a dishwasher and other electric appliances. The 98 main function of a
kitchen is cooking or preparing food but it may also be used for dining and entertaining.

2.2. INTRODUCTION TO THE COMPANY

Arul Industries was established in the year 1992 as a partnership firm venturing into
manufacturing and export of a range of premium quality kitchen appliances. Their products
are widely appreciated for their quality and effectiveness. Their range of products includes
electric Rice Cookers, Steel Rice Cookers, Non-Stick Wares, Wet Grinders, LPG Stoves,
Induction Stoves, and Electric Rice Cookers. They have a reliable and trusted vendor base,
which has exhibited a flawless record of providing superior quality products and consignment
undertaking capability.
Their large capital resources, extensive distribution network and quality management
program have made them a renowned name in the industry. They are facilitated with
administrative, warehousing and logistics personnel, who help in achieving their aim of
gaining utmost client satisfaction. Their products are widely used in home appliances and
Commercial sectors. Moreover, these products have gained wide acceptance in the Indian
Subcontinent, USA and a few Gulf nation.
At first they manufactured only aluminium idly boiler, milk boiler and puttu kudam in
the brand name of IDEAL, due to its quality and cheaper price than other products in the
market, within a short period the brand name IDEAL was established throughout the state and
the company got orders throughout the state and nearby state Kerala. As the business was
growing to high level they shifted the factory to the outskirts of the city at Velankulam. Next,
they decided to include pressure cooker to their product line. Want of capital has led them to
open up for partnership. After the partnership they started their business have started to grow,
they produced cookers and day by day they started to manufacture many variety of products
like non-stick cookwares and they also marketed Grinder, mixer-grinder, Glass stove, Glass
top stove, Induction stove and etc. Now they have grown well and created the brand name
IDEAL.

2.3. COMPANY PROFILE

Name of the Company

ARUL INDUSTRIES (IDEAL COOKWARE)

Legal status

Partnership

Compliance to ISO

ISO 9001:2000

Address

IDEAL nagar,
3/171, Vellankulam, Tenkasi Road,
Tirunelveli-627012.

Date of Incorporation

Established in the year 1992

Website

www.idealcookware.com

Product exported countries

U.S, Sri Lanka, Saudi Arabia

Banker

Tamil Nadu Mercantile Bank

288 People

Annual turnover

Rs.100 Crore

Business Type

Manufacturer, Exporter, Supplier

Employees

Phone No

0462-2331471, 2337403

IEC No

3207667895

Logo

CHAPTER-III
OGANISATIONAL STRUCTURE
CHAIRMAN

DIRECTOR

OPERATOR
PRODUCTO
N
MANAGER

SUPERVISOR

WORKER

FITTING

PURCHASE
MANAGER

ASSISTANT
MANAGER

CLERK

FINANCE
MANAGER

ASSISTANT
MANAGER

CLERK

SALES
MANAGER

SUPERVISO
R

HELPER

INVENTORY
MANAGER

SUPERVISO
R

MARKETING
MANAGER

AREA
SALES
MANAGER

MAIN
GODOWN
INCHARGE
SALES
OFFICER

STORE
INCHARGE

TECHNICIA
N

Partners
1)
2)
3)
4)
5)

Mrs G. Susila
Mrs G. Mariammal
Mr G. Nelson
Mr A. Jeba suresh
Mr A. Aaron raja anandh

Aim:
To give job opportunities to 1000 numbers and innovative cost affordable durable
house hold products available at minimum 5 states in India and having an export office in
Singapore.

Product portfolio
Arul industry is well-known manufacturers and exporting a wide range of Kitchen
Appliances. They are the manufacturer and exporter of Kitchen Appliances like Aluminium
Cookware, Non Stick Wares, Pressure Cooker, LPG Stove, Steel Rice Cooker, Induction
Stove, Thermal Vessel, Fry Pan, Kitchen Tawa, Milk Boiler etc. The entire range is
manufactured in tandem with international standards of quality, which ensures durability and
high performance at clients end. Their range meets the requirements of Kitchenware and
Food Industries in various parts of the globe. Their products are
LPG and Induction Stove
o Electric induction stove
o Induction stove
o Lpg stove (smart)
o Lpg stove - super
o Lpg stove - superior

o Lpg stove(supreme)
o Medium induction stove
Kitchen Tawas
o Durable tawa - flat
o Innovative tawa
o Pathirai tawa
o Tawa - concave
o Tawa - flat
Puttu Maker
o Party maker
o Puttu kudam - large
o Puttu kudam - small
o Puttu maker - single
o Puttu maker twin
Pressure Cooker
o Chubby cooker
o Chutty pressure cooker
o Hard anodised pressure cookers
o Idly cooker

o Pressure cookers
Milk Boiler
o Aluminium milk boiler
o Designer milk boiler
o Durable milk boiler
o Heat resisting milk boiler
Commercial Grinder
o Table grinder
o Table top wet grinder
o Table top grinder
Induction Cooker
o Induction cooker
o Modern induction cooker
Non Stick Tawa
o Domestic non stick tawa
Non Stick Cookware
o Non sticky cook ware
Non Stick Pan
o Non sticky pan

The salient features:

Durable

Can withstand extreme temperature

Fuel saving

Uniform heating

Available in various designs and capacities

Team
Professionalism is reflected in their team of experts comprising of Designers,
Engineers, Quality controllers, Sales & Marketing executives and Warehouse personnel, who
work in synchronization for on time delivery of high quality products. Their team always
takes active participation in finding out the need of their customers and delivering the goods
in time.

Strengths

State of the art manufacturing facilities

Rich industry experience

International quality standard products

Use of sophisticated machinery

Strong market networks

Cost-effective range

Timely delivery of consignments

Business Policy
They believe in ethical business practices in producing the best quality products.
Customers are their main priority and they aim at highest level of customer satisfaction. They
have developed a Business policy to fulfil their aim and goal. This policy includes:

The Best in Quality

The Best Product

The Best Service

Value
The companys ethical business practices, transparent dealings and in-depth industry
knowledge have helped them garher a huge clientele across the market. Some factors for
which their clients give preference to them over our market competitors are as follows:

State of the art manufacturing facilities

Quality products

Team of experts

Best Service

Industry leading prices

Eco-friendly

10

ISO 9001 : 2000 ACCREDITATION

The companys quality systems continue to be covered by the ISO 9001: 200
accreditation award.

Principles and Law

The principles and laws followed by the company are

5S principle
Labour act
Factories act
Safety purpose act
Environmental protection act

EMPLOYEE DETAILS
Employee working time
Working time : 9.00am 5.30pm

Morning break

11.00am 11.10am

Lunch break

01.00pm 01.30pm

Evening break

04.00pm 04.15pm

Over time
Table 1: Employee working time

05.30pm 07.30pm

Employee salary details

11

Helper
Rs.5500
Operator

Rs.8000

Skilled

Rs.10000 above

Employees health & safety

The employees health is maintained and the safety precautions are given to them for
their healthier life style. It is the responsibility of every manager and executive to ensure that
the operation are carried out safely preventing injury to person and damage the property. The
employees are given regular medical check-up and if they met accidents then they will be
provided with immediate first aid steps to care them from injuries. They are provided with
mask, goggle, shoe and glove for their working environment. They follow the safety purpose
act. The labour act is also followed there were workers only above 16 ages. The health
insurance is given for each employee. And all the employees were given safety advice
weekly.

Personal benefits
Company maintained car with driver for use on company business, any official trip
for long distance will be arranged by company itself. The half of the tuition fee of the
employees children were given by the company.

Reimbursement of expenses
Reimbursement of entertainment, travelling and all other expenses incurred for the
business of the company, as per rules of the company.

Employee provident fund

Employees and workers of the company are covered under the employees provident fund
scheme. This scheme is only for the permanent employee of the company.

12

Allowance
The management has provided many allowance and facilities considerable welfare measures to
promote the interest of the worker.
Gratuity
Bonus

Medical check up
The benefits and other allowances are given based on Provisions of factories act
under form 26, 26 A, 27, 11, 15 & 6

13

CHAPTER-IV
FUNCTIONAL DEPARTMENTS

Departments are the entities organizations form to organize people, reporting

relationships, and work in a way that best supports the accomplishment of the organization's
goals. Departments are usually organized by functions such as marketing, administration, and
production.
The various functional departments in Arul industries are:

PURCHASE DEPARTMENT
INVENTORY DEPARTMENT
PRODUCTION DEPARTMENT
MARKETING DEPARTMENT
SALES DEPARTMENT
FINANCE DEPARTMENT
EXPORT DEPARTMENT

Individual employees perform a functional role for the company within these departments.
The employees are members of a team who work together to further the goals of the
organization using their particular skills and talents. Employees in a functional area of the
company have a specific role in the department to achieve the goals of the company. In a
production or manufacturing environment, a cross-trained workforce may increase
productivity by allowing the company to place workers in positions to meet customer
requirements.

4.1. PURCHASE DEPARTMENT

14

Purchasing department is responsible for procuring supplies. This is involved in

development of strategic planning and the advent of just-in-time purchasing made purchasing
a more crucial business function. Today, purchasing is often referred to as supply chain
management and the purchasing department has taken on a larger and more vital business
role.
In Arul industries they purchase their basic raw material aluminium from Mumbai and
Delhi. The steel is purchased from Chennai. Then the spare parts are purchased from
Bangalore and Chennai.

Role of Purchase Manager

Prepare purchase budget

Receive purchase requisition, and ascertain the material requirements.
Assertion the sources of supply
Issue purchase order to the supplier selected
Select the supplier offering the best terms and conditions.

Purchase Procurement Process

The planning of Raw Materials is carried out as per the requirements

Their market schemes were checked and according to that their requirements were

checked and the purchase is done.

The demand from the market is given to the production department then the
inventory department checks for the order if there is no available stock then it is

informed to the purchase department and the raw materials are purchased
The supplier is selected from the Approved Supplier List and the Purchase Order is

prepared for the procurement of the material

One copy of the Purchase order is sent to the Supplier by suitable mode, one copy is

filed
The Materials are received and handled as per the Procedure for Stores
The performances of the Suppliers are continuously evaluated as per documented

procedure for Evaluation of Suppliers

In case of emergency or non-availability of material from the approved Suppliers, the
material is procured from other Suppliers.

15

After the purchase it is stored in the inventory and then according to the needs in
production it is taken by production department.
PURCHASE PROCUREMENT PROCESS FLOW CHART

Purchase
Requisition
Purchase
Order
Receiving
Materials
Approval of
Invoices
Making
Payment

Purchase from Outsiders

Their products like Grinder, Mixer-grinder, induction stove and rice cookers are

purchased from out side

Grinders were purchased out from Coimbatore, Mixer-grinder from Coimbatore and

then induction stove and Rice cookers are exported from china.
Products were bought out from outside and they were done quality check then sealed

and then send to the market.

For purchase time if it is inside Tamil Nadu it would take about one week and for
export it would take about 20 days.

4.2. INVENTORY DEPARTMENT

The basic job of the Inventory Manager hence is to receive the goods and act as a
caretaker of the materials and issue them as and when Production demands it. Needless to say
storekeeping activity does not add any value to the product. In fact it only adds to the cost.
The organization has to spend money on space.

Role of Inventory manager

16

The basic job of the Inventory Manager is to receive the goods and act as a caretaker
of the materials and issue them as and when Production demands it. To check the physical
stock status of the material annually against the stock registers. The condition of the materials
stored in the stock is verified regularly and the results are recorded in the Stock Register.
The basic functions to manage a stores carried out are

Receiving of incoming consignments (goods)

Disposal of undesirable goods
Safe keeping of goods (Custody)
Inventory Management
Housekeeping and record maintenance

In Arul industries it has one main unit for storage and many spares and one store for the
inventory purpose.

RAW MATERIAL STORES

Procedure for receipt of materials / casting

Store In charge receives the material from the Supplier along with the delivery Chelan

/invoice
Store In charge verifies the Item description and quantity against the Purchase order
Store In charge enters the details of the receipt in the Register and Inspect the

Material as per documented procedures for Inspection and Testing

The rejected Materials are identified handled as per the procedure for Identification

Trace ability
The Rejected materials are handled as per procedure for Non-conforming Product

Procedure for Issue of Material

Store In charge receives material /Item requirement from the user department through

Material Requisition cum Issue Register then he verifies the availability of stock
If stock is available he issues the material to the user department after making
necessary entry in Issue Register and he updates the stock details in the stock register

17

In case the requested material is not available in stock he informs it to the purchase
department. After approval from Director then he purchase them from approved

sources
The Physical stock statuses of the Material against the Stock register are periodically

monitored
The condition of the materials stored in the stock is verified regularly and the results
are recorded in the Stock Register

Finished goods stores

The finished goods from the production unit enters the inventory before entering

the store incharge will keep in count of how many products entering the store
These details will be recorded in entry note
The Physical stock statuses of the Material against the Stock register are

periodically monitored
The condition of the materials stored in the stock is verified regularly and the
results are recorded in the Stock Register

Procedure for Issue of product

When the inventory manager receives the receipt from the sales manager for issue of

the material he checks for the availability for the number of products
Then the number of products to be sold are loaded in the truck
The store incharge will keep note of the items went out of the store and maintain it in

the register
In case the requested material is not available in stock then he informs it to the
production department. After approval from Director then they starts production from

approved sources
The Physical stock statuses of the Material against the Stock register are periodically

monitored
The condition of the materials stored in the stock is verified once in a year and the
results are recorded in the Stock Register

18

4.3. PRODUCTION DEPARTMENT

Production is the functional area responsible for turning inputs into finished outputs
through a series of production processes. The Production Manager is responsible for making
sure that raw materials are provided and made into finished goods effectively. He or she must
make sure that work is carried out smoothly, and must supervise procedures for making work
more efficient and more enjoyable.

Role of Production Manager

He is responsible for the production of goods services in the organization. He looks
after the purchasing function and manages the production design and process. He is called in
different names such as production engineer, Plant engineer, Operation engineer etc. They are
responsible for plant layout, production control and quality control.

Functions of production department

In Arul industries, the production department want to ensure that their daily target is
achieved and to take control measures if required. Here there is no separate research &
development department, the production unit is responsible for that. Here there were one
rolling unit and then three units for the production process. In each unit different products are
manufactured.

19

In rolling unit the raw aluminium is converted to the aluminium plate which is used

for manufacturing the products

In unit 1the aluminium and steel products like Idly cooker, puttu maker, milk boiler

and choodarapetti in various sizes were done

In unit 2 all the Non-stick items were manufactured
In unit 3 pressure cookers are produced

Production department structure

PRODUCTION
MANAGER

UNIT 1
SUPERVISOR

WORKERS

UNIT 2
SUPERVISOR

UNIT 3
SUPERVISOR

WORKERS

WORKERS

UNIT- 4
SUPERVISOR

WORKERS

Production Planning

The Production Planning activity is carried out based on Customer requirements/Sales

forecast

20

Production manager gets requirement from sales department and checks the

availability from inventory department and schedule the process

In inventory there should always be about 30 items in stock in all varieties. If the

stock is not available then it is informed to the production department

Then the production is done according to the order from the sales department
Yearly thrice the new designs were designed by the production department itself

during the festival seasons.

The new design quality were checked and then the mould is done and the production

starts in for that design

After each and every process there is a quality check process
For each day they produce about 1250 products in each unit
After the production process the item moves to the quality check and then it goes to

the inventory department

End of the month Production Planning Engineer Prepares Plan vs. Actual production
report. If any difference from plans Production Planning Engineer analyze the reason
and initiate corrective action as per the procedure for Corrective and Preventive action

Production Control

Based on the work order Production Supervisor allots work based on availability of
machine and manpower.

Raw Material required for the production is received from stores

The availability of the following documents in the Production area is ensured by the
production Supervisor.
Process Flow Chart
Work Instruction
Process sheet
Quality Plan

The production is carried out as per the suitable documents and the operator records
the details of production in the Production Log.

At first one product is manufactured and the inspection is done. After the approval of
the manager only the production process continuous

The Non Conformance are handled as per procedure for Non conformance product

Corrective action are initiated and implemented as per procedure for corrective and
preventive action
21

The Production Supervisor has to ensure the working environment n the following
aspects:
Proper Housekeeping
Proper Illumination
Proper Safety equipment is available

PROCESS FLOW CHART

Rolling process
Aluminium
melting

I/P

Dying(moldin
g)

Hard roll

(800c-900c)

Cage roll

Anelling

535 C

Rolling process flow chart.

In this rolling process first the raw aluminium is melted under 800 -900 C. It takes

about 2hours
Then the tablet is mixed which is used to purify the aluminium
Then the dying process is done. Here the melted aluminium is poured into the kadai

and moulded
Then in hard roll process the moulded aluminium is made into the roll
Next comes the cage roll process, here the rolled aluminium cutted into the shape

according the item to be done

Then the anelling process is done under 535C.The anelling is done for the flexibility
purpose
22

Loading

In this process there is 3 shifts

Per shift the loading is 450kg and the output is 400kg
The total output per day is 1500kg

Unit 1

I/P

trimming

Pressing

polishing

steel

Finishing

emery

Unit 1 Process flow chart.

The input steel or aluminium is given

Then pressing is done according to the mould which is to be produced
The trimming is done for the roughness
Then the polishing is done
In the case of aluminium next it goes to the emery process but if it steel then directly

it goes to finishing
The finishing process contains stamping, riveting and packing.

Loading

In this process there is no shifts

The total output per day is 1250kg
In one batch 250 output is given
There were 72 workers in this unit
23

Unit 2

I/P

Pressing

(Mechanical)

Outer painting

Soda wash

Sand blasting

(inner 2coat)
(Hydrofluoric acid)

Emery

Oven

Painting

(Base- 280 c
Medium- 380 c
Top 450 c)
Unit 3 Process flow chart.

The input steel or aluminium is given

Then pressing is done according to the mould which product to be produced
Then the soda wash is done by hydrofluoric acid
Then the sand blasting is done in inner side. It I done two times
The outer painting is done
Then it is kept in the oven for baking process. It is baked in three stage first in base

2280c then mid 380c and next in top 450c

Then the emery is done in inner side
Then the outer painting is done and kept in oven
Then the finishing is done

24

Loading

In this process there is no shifts

The total output per day is 1250kg
In one batch 250 output is given
There were 40 workers in this unit

Unit 3

I/P

Pressing

Cutting

(Holes)

(Hydraulic)

Emery(inner
oil)

Trimming

Stamping

Reviting

Polishing

Finishing

Unit 3 Process flow chart.

The input aluminium sheet is given

Then pressing is done, For cookers lid 2 times and for body 3times pressing is done
The trimming is done for the roughness
Then the cutting process is done
Then the polishing is done
Then the company logo and details are stamped
Then the handle riveting all those are done
The emery is done
Then the packing is done and it is finished
25

Loading

In this process there is no shifts

The total output per day is 1250kg
In one batch 250 output is given
There were 52 workers in this unit

QUALITY CONTROL
The quality of the product is checked at each step of the manufacturing at and at the
end of the production. After passing in the test only the products will be allowed to be
packed. In each batch of production three items are checked for the sample. There are many
quality check, they are
26

 Coating thickness
Non-stick quality
Visual defects
o Poops & blister
o Mud cracks
o Pit cracks
Salt water corrosion & resistance test
Adhesion
o Cross-hatch test
o Peel test
The tests were done according to the ISO standards range. Then for handle testing the imbet
test is done.
TEST

PRESSURE LEVEL

Capacity check

2Kg

Proop pressure test

0.5 1kg/cm^2

Gasket release system

1.5 2.0kg/cm^2

Bursting test

6.00kg/cm^2 & above

Safety value test

1.5 3kg/cm^2

Quality test value.

Quality check in Non-stick products

To check the quality in the Non-stick products the test undergone are

Thickness test from 2 2mm

Coating test 20 microns and above
Salt corrosion test for each 24 hours it is tested
Peel test 4hours heating
Scratch test using cello tape

27

4.4. MARKETING DEPARTMENT

Marketing department is entrusted with the function of planning and
executing the conception, pricing, promotion and distribution of ideas, good services, to
create exchanges that satisfy individual and organizational boards. In simple terms the
marketing function is created around the customer and his needs.

Role of Marketing Manager

28

He is charge of the marketing department of the organization. The marketing

department aims to increase the turnover of the organization, market size, and profitability of
the organization. The marketing manager should be tactful. He should be known the strength
and weakness of the firms products. He is also able to design and implement market
strategies to enhance turnover and capture new markets.

Functions of marketing department

This varies according to the volume of products the dealers purchase from the distributer.
There were totally 18 distributers in Tamil Nadu and 11 in Kerala. Under each distributer
there would be about 40 dealers.
The marketing team releases various schemes and offers during the festival
seasons according to that the production and sales is done. They provide many schemes and
offers during festival times like in diwali and onam.

PROMOTIONAL ACTIVITY
Promotion refers to raising customer awareness of a product or brand, generating sales, and
creating brand loyalty. It is one of the four basic elements of market mix, The idea is to make
people aware, attract and include to buy the product, in preference over others.
The below are some of the combo offers that were introduced by the company during
some special occasions in the year 2011, 2012, 2013, 2014 respectively.

COMBO OFFERS
YEAR
2011

Rs
Rs. 1117

COMBO OFFER
1 Cooker + 2 Vessels

29

2012

Rs. 1111

3ltr

Cooker

1chubby

pressure cooker + 1Non stick

tawa.

2013

Rs 1113

Induction based 3ltr cooker +

1.5ltr chubby cooker + Nonstick tawa.

Rs.1777

3ltr induction stove + 1Non-

2014

stick fry pan + 0.6 electric

rice cooker.

DEMAND FORECASTING
The major function of them is demand forecasting. It should be done through sales
force in the company such as sales representatives, sales executives etc. In IDEAL the service
man gives his daily report to the sales officer and he gives the daily report to sales officer
then to sales manager then it goes to the marketing manager.

Advertisement
In the case of IDEAL, advertisement is the most major element of the
promotion mix. It covers all the activities to connect the public regarding goods and services
offered for sales. Advertising is transmitting through mass media such as television,
newspaper, magazines etc.

The mode of advertisement used in IDEAL is

Paper
Television
Notice
Banner
30

The advertisement is given to create the brand image and to give awareness to the customers
about their quality product and offers they provide. They also market through online by
online shopping.

4.5. SALES DEPARTMENT

The main function of a sales department is to attract and retain customers. Sales
activities need to be co-ordinated i.e., to meet the customer demand with appropriate supply.
Sales department is responsible for the proper sales of the finished goods to the right

31

customer. After getting the purchase order the production is done and the sales department
will deliver the product to the customer on time.

Role of Sales Manager

Although the role of sales manager professionals is multidisciplinary, their primary
responsibilities are

setting goals for a sales-force

planning, budgeting, and organizing a program to achieve those goals
implementing the program
Controlling and evaluating the results. Even when a sales force is already in place,
the sales manager will likely view these responsibilities as an ongoing process
necessary to adapt to both internal and external changes.

Distributors
In IDEAL first the products are delivered to the distributor then he distributes it to the
dealers. There were three types of dealers

SALES FLOW CHART

Dealer (A)
Medium(B)
Small(C)

Company
Distributor

Distributor
32

Dealer A(Bulk)

Dealer B(Medium)

Dealer C(Small)

PROCEDURE
The following steps of activities are followed whenever an enquiry for supplying product
for a Customer is received:

The sales manager receives the mail from the customer for the order
the order is registered in the order register
Sales manager checks with the inventory department that is there any stock of that

product which the customers have ordered

If the required quantity is available then the customer is send a invoice then if the
payment is done on that day itself then there is 5% offer in the payment. If it takes 3

days then there is 3% offer

If the required quantity is not available then the inventory checks for the raw material
availability and send it to the production or if there is no raw material available then
was send to the purchase department to purchase raw materials and then the

production is done
Then the goods are checked according to the items in order register and loaded in the

trucks
The good are delivered to the customers through their trucks
The payment of the bill should be done within 1 month
In the case of export the goods are send through the flight
The goods will reach the customers within 7 days of order

Service provided
The Arul industries have its own service centre in all the places where their products
are sold. So in any case of repair or damage we can contact the service centres where
products will be exchanged or repaired. If the products cannot be repaired further it will be
sent to industry. The service man sends his daily report to the sales officer. The technicians
from the service centre are sent to the retail shop and the daily report is collected.
33

Service Flow Chart

Service
manager

Chief
technician

Technician

Service Manager
Service managers are business people who work full time to develop and deliver an effective
user focused digital service, including all related processes, for which they are responsible
and accountable.

Chief Technician
A Chief Technician is the individual within an organization who oversees current technology
and creates relevant policy. He should have the business knowledge necessary to align
technology-related decisions with the organization's goals.

Technician
A technician is a worker in a field of technology who is proficient in the relevant skills and
techniques, with a relatively practical understanding of the theoretical principles. Technicians
may be classified as either highly skilled workers or at times semi-skilled workers, and may
be part of a larger (production)process. They may be found working in a variety of fields, and
they usually have a job title with the designation 'technician' following the particular category
of work.

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4.6. FINANCE DEPARTMENT

Finance department will act as major part of every industry. It is the basic necessity of
every organization and these controls the inflows and out flow of funds in an industry. The
finance department is treated as the one of the most significant departments. Financers are the
basic necessity to run each and every single activity of organization.

Finance Managers role

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He is responsible for financial matters in the organization. He prepares financial plan.

He assesses the financial needs of the organization and sources of the finance. He should be
an export in the field of financial management. He should know different tools used in the
financial management ratio analysis, Fund flow analysis, cash flow analysis, Budgeting etc.
He is responsible for financial planning, raising necessary fund, controlling the use of funds,
appropriation of profits etc. He is also responsible for the details of the day book, Ledger and
P.F registers. Moreover, he should record and maintain all the details of the sales tax
calculation and related documents and produce them on demand.

Functions of finance department

Finance department in Arul industry is very traditional. The objective is to settle the
payments of suppliers, receipts of customers, file returns and payments of salaries, bank
activities, prepare Balance sheet and Profit and Loss Account. As it is the partnership firm,
the partners contribute their funds to make capital requirement. Arul industries deals all
finance requirements with Tamil Nadu Mercantile bank.
Accounts department does not perform any modern financial activities like financial
planning, fund management etc. Everyday transactions are entered in a register and the
register is closed at 5.30 pm every day.
They prepare Balance sheet and Profit and Loss Account for every financial year. All
these activities are handled by the manager and assistant manager.

BOOK KEEPING
The book keeping process primarily records the financial effects of transactions. The books
that are maintained by the finance department are cash book, petty cash book, bills receivable
book, bills payable book, purchase book, purchase return book, sales book and sales return
book.
Cash Voucher
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The information in cash voucher is withdrawls payment and sales. Payments include
both general expenses and payments to suppliers. Petty cash is also maintained.
Sales Book
All export and local sales are entered in the sales book. In sales book drawback is
entered. Drawback should be show in receivables. All the sales related to the concern is
recorded in sales book. Product rate, quantity, date of transporting, date of purchase order is
maintained.
Bank Book
All documents must be through bank only. Through bank all payments are received and
also the payments is dispense through bank. After receiving the order on requisition of
company the bank provides packing credit loan upto 75%.
Bill Purchase
Bill purchase includes letter of credit, document against payment, document against
acceptance. There no security in case of document against acceptance. There is no security in
case of document against acceptance, document against payment but due to dyeing problem
recently buyers do not provide letter of credit.
Balance Sheet
It is prepared yearly by Finance Department on basis of last year profit and loss account.
This shows the profit or loss earned by the company and balance amount will be taken to the
next financial year.

4.7. EXPORT DEPARTMENT

The term export means shipping in the goods and services out of the jurisdiction of a country.
The seller of such goods and services is referred to as an "exporter" and is based in the
country of export whereas the overseas based buyer is referred to as an "importer".
In international trade, "exports" refers to selling goods and services produced in the home
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country to other markets. Export of commercial quantities of goods normally requires

involvement of the customs authorities in both the country of export and the country of
import.

Process
Methods of export include a product or good or information being mailed, hand-delivered,
shipped by air, shipped by vessel, uploaded to an internet site, or downloaded from an
internet site. Exports also include the distribution of information that can be sent in the form
of an email, an email attachment, a fax or can be shared during a telephone conversation.

List of documents used in export trade

The list of documents generally used in export trade are :

Application form for allotment of importer- exporter code number.

Application form for registration /membership/registration-cum- membership

certificate of export promotion council.

Master document I

Master Document II

Performa Invoice

Commercial Invoice

Customs Invoice

Packing List

Intimation for inspection

Registration with textiles committee

Application for allotment of quota under FCFS.

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Application for pre-shipment inspection (India Items)

Application for certificate of origin
GSP certificate of origin
Shipping Bill / Annexure A or B
Declaration for claim of duty drawback
Exchange control declaration forms: GR/SDF/PP/SOFTEX
Application for the removal of excisable goods for exports (AR -4)

Receipt

Bill Port trust copy of shipping Bill

Mates of Lading for combined transport and port to port shipment

Airway bill

Certificate of Insurance / Insurance Policy

Letter to the Bank for collection/Negotiation of Documents

Bill of Exchange

Form of claim of drawback under rule 13

D form for claim of drawback against postal exports

Bank certificate of export and realization

Bank realization certificate

Certificate for Inward Remittance

Bill of Entry

A 1 : For remittance against imports

A 2 : For remittance other than imports

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Duties of an export manager

Once a decision is taken to establish export business, the first and the foremost task is
to plan to secure an export order. After confirming the order to the buyer, the next step
is to create an organization structure for it and create the required team of personnel
for its execution. Export Manager is key person. The success or otherwise of the
export order depends, to a great extent; on how efficiently (or otherwise) he handles
the order. He is required to maintain liaison with the importer, prepare plans for its
implementation and issue necessary executive instructions to the export staff. He has
also to evolve an information system so that there is a regular flow of information on
the progress of the order. If the various tasks are not being done as per prescribed
schedules, he has to analyze the variances and tasks and take suitable corrective
measures, if necessary, for the purpose and finally submit report on the progress of
work to the top management. The duties performed by the export manager are as
follows

Procurement of export order

Planning for export order execution

Direction for exports

Export order execution

Importer liaison

Export order evaluation

Reprogramming

Reporting on export order.

Exporting countries
Arul industries (IDEAL cookware) were exporting their wide range of products to many
counties like Indian subcontinent, U.S.A, Sri Lanka, France Saudi Arabia and a few Gulf
40

nations. Their products have become popular within short period of time. The company
seems to earn more profit only after entering into foreign markets. The Import Export Code
Number (IEC No) of the company has been registered at Madurai.

Acceptance of Bills of Exchange

Bill of exchange accompanies by the above documents is known as the Documentary Bill of
Exchange. It is of two types:

Documents against Payment: The drawer of the company instructs the bank to hand
over the relevant documents to the importer only against payment.

Documents against Acceptance: The drawer of the company instructs the bank to
hand over the relevant documents to the importer his acceptance of the bill of
exchange.

CHAPTER-V
LEARNING

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Internship at Arul industries (IDEAL cookware) gave me a great experience; it helped

me to know what business all about is. As it is a manufacturing sector there were

labours as well as employees.

The directors managing skill for different level of people in same environment is

really amazing. I had an opportunity to learn the procedures of all departments.

I also had a practical exposure to the managerial aspects of the organization. In
addition, I gained a good experience in term of self-confidence, real life working

situation, interactions among people with different professional background.

Also, the training was an opportunity for me to increase my human relation both

socially and professionally.

In review this internship has been an excellent and rewarding experience. I have been
able to meet and network with so many people that I am sure will be able to help me
with opportunities in the future.

CHAPTER VI
CONCLUSION
The study conducted at ARUL INDUSTRIES which is one of the leading marketer in
south India, helped in getting a wider outlook about the business environment and managing
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an organization. Organization produces wide range of products and also exports it to other
nations.
It was a general study regarding all functions and aspects of Arul industries. The
company has six functional departments. It is found that company has a good working
environment and cordial relationship is maintained between all departments for the smooth
functioning and achievement of the organization goal and maintains the companies brand
image among the customers. IDEAL received the ISI mark for quality and ISO 9001 : 4000
certificate for quality. The company is planning to make a separate department for research &
development so that they can still provide more varieties of products in a cost effective
manner.
The power of settled goal and supportive values are visible from the gradual growth
of the company. The strengths of the company are well settled and this can challenge any
economic situation and make a profitable market for the company.

CHAPTER -VII
REFERENCES

http://www.indianindustry.com/arul-industries-tirunelveli/
http://www.indiamart.com/arul-industries/awards-and-memberships.html
http://idealcookware.com/main/
http://www.tradeindia.com/Seller-226663-Arul-Industries/
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