Professional Documents
Culture Documents
Submitted to the MAHATMA GANDHI VNIVERSITY In partial fulfillment of the requirements for the award of the degree of
JIBIN KURIAN
Under the guidance of Mrs. SUNITHA BENOY
Declaration
I, JIBIN KURIAN hereby declare that the report entitled a report on organization study at CRYPTM CONFECTIONERS PVT.Ltd
THODUPUZHA submitted to Mahatma Gandhi University in partial fulfillment of the requirements for the award of the degree of Master of Business Administration is a record of original work done by me during my period of study in the DePaul College of science and technology under the guidance of Mrs. Sunitha Benoy
ACKNOWLEDGEMENT
I acknowledge with gratitude all those who helped me in making my study a successful one. First of all I express my profound gratitude to lord almighty for inspiration throughout this project. Next my sincere thanks and gratitude is to Prof. Joseph Chacko, HOD, and MBA Department who has guided me all along the course of my study. I express my gratitude to my guide Mrs. Sunitha Benoy, lecturer of the department of MBA for her valuable help and guidance at various stages in providing creative and constructive suggestions that helped to improve the quality of my work. I would like to thank Mr. Lalu M.V, Finance Manager, and CRYPTM CONFECTIONARY PVT.LTD. For permitting me to take up the project work in the company. I am grateful to all the faculty members of the MBA department of depaul institute of science and technology Angamaly, my friends and all the others for their support in making this project report.
TABLE OF CONTENTS
Chapter 1 2 Title INTRODUCTION DESIGN OF THE STUDY 2.1 Scope of the study 2.2 Objectives of the study 2.3 Methodology 3 2.4 Limitation of the study INDUSTRY PROFILE 3.1 International scenario 3.2 National 4 3.3 State COMPANY PROFILE 4.1 Objective of the study 4.2 History and philosophy 4.3 Future plan and procedure 5 6 4.4 Financial performance of the company ORGANIZATION STRUCTURE FUNCTIONAL DEPARTMENTS 6.1 Structure of each department 6.2 Function of each department 6.3 Responsibility of key personnel 7 8 9 10 6.4 Department future plans SWOT ANALYSIS FINDINGS AND SUGGESTIONS CONCLUSION BIBILIOGRAPHY Page no.
CHAPTER 1 INTRODUCTION
INTRODUCTION
Sweets are liked by everybody irrespective of their age. Confectioneries are very much popular among the people .The Confectioneries industry is a competitive one. Various new companies come into this field. We can buy different varieties of confectionery products from the market according to our choice and taste. Kerala is a state with many large scale industries. Confectionery industry is one of the leading industries which occupy whole of the state. There are 22 confectioneries companies are in Kerala. Which sell about 75 varieties of chocolates all over Kerala and in India? In the recent years, many new companies came into this field. The leading confectionery companies in Kerala are cryptm, foster, royal, ruby, pritis, priya, toffo, derby etc. Every company in Kerala is facing stiff competition, mostly from parries, nutrine nestle Cadbury etc. each company is producing at least 15 varieties of candies and toffees etc.
SECONDARY OBJECTIVES:
To get an awareness about the overall performance of the company. To check out whether there is need for introducing corrective measure in any of the company strategies. To assess the efficiency of different departments To ascertain organizational structure To ascertain the process of each department and structure of department To know the duties and responsibilities of key personnel. To know the departments future plan. To know the function of each department To improve management skill each
2.3 METHODOLOGY
It is necessary for the researcher to design the methodology for the problem. It is the way to systematically solve the problem. Exploratory research has been used here to collect the data relating to the topic under the study. Personal observation, interview with key personnel of each department and information drawn from company journals facilitated the collection of required data. The data collection include s both primary and secondary data. Primary data: The data was collected through observation and using data collection instrument Questionnaire and pilot study was conducted in order to edit or eliminate error. Secondary data: was collected from the internal record of the company, library, and internet
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3. INDUSTRY PROFILE
Everybody likes the sweets irrespective of their age. Confectionaries are very much popular among the people. This industry is a highly competitive one. Various new companies came into this field. We can buy different varieties of confectionary products from the market according to our choice and taste. KERALA is a state with many large and medium scale confectionary industries. Confectionary is the one which occupies whole of the state. Confectionaries have a better demand all over the world.
The world market for confectionery is now valued at more than 60bn (pounds sterling) [ECU85.7bn] and is growing at 5%per year. This corresponds to more than 12billion tones of sweets (including chocolate and sugar confectionery), with volume sales growing by a healthy 3% each year. The demand for sweets is greatest in Western European followed by Northern America and Eastern Europe, where the cheaper sugar confectionery is more popular than chocolate. However, the Asian market for confectionery is growing fast, and South Americans are also acquiring a taste for sweet snacks. A new report by export marketing consultancy Food from Britain urges UK manufacturers to look further afield to boost sales, and reminds the sector that exports will be give a shot in the arm by sterlings gradual return to competitiveness. UK exporters currently enjoy s 12% share of the world confectionery market, and send their goods to around 220 countries, and should be seeking both to increase market share in these and explore new territories.
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The leading confectionary companies in KERALA are CRYPTMS, Foster, Craze, Cukoo, Royal, Ruby, Pritis, Priya, Toffo, Skthi, Derbby etc Every company in KERALA is facing a stiff competition mostly from Parrys, Parle, Nestle, Cadbury etc. Each company is producing fifteen varieties of Candies and Toffees etc...
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4. COMPANY PROFILE
CRYPTMS Confectionary Pvt. Ltd was incorporated in the year 1987 at THODUPUZHA, in IDUKKI District of KERALA. The companys marketing office is at Cochin. The first year itself the company achieved a turnover of Rs. 1 core with the financial help of KERALA Finance Corporation, Canara Bank, etc... This was achieved with the dedicated service of experienced employees of the organization. They found that there is a scope on the biscuit market. So they had started a new biscuit unit named MEGHA HOME PRODUCTS PRIVATE LTD. They are manufactured in the brand name CRYPSY BISCUITS. This is a registered small scale industry unit with the authorized capital of Rs 10 lakhs.
Now the company extends its operation all over south India with hindered of distribution and by using effective sales operation. The companys major strength is its distribution channels. The company has more then 50 distributors in KERALA. The KERALA market is divided into 4 regions and each region having different supervisors, the marketing manager coordinates various activities for maximizing the sales of the company. Competition is increasing day by day and introduction of new products in every year is a must for exist the market. A part from new products, sufficient advertising and supporting schemes are necessary. CRYPTMS are made large scale advertising through TV and Radio to increase the awareness of the product among consumers. Nutrine and Parry are the major competitors of CRYPTMS. CRYPTMS possess the third position in the confectionary industry in India. The employees of the company are divided into four categories, workers both temporary and permanent, office and administrative staff, marketing staff and security staff, the 14
organization gives importance to the welfare of the employee because development of the organization can be attained through the development of its employees. The representatives of the workers are also included in the promotion of the employees. The decision is based on the performance appraisal and seniority. For expanding the business operation of the company, CRYPTMS started a new plant at PALAKKAD, which is named as BRISTO; this new unit is having the production capacity three times greater than that of the old plant. MEGHA HOME PRODUCTS is now entering into biscuit market by name; CRYSPY biscuits in four varieties such as glucose, milk, Arrowroot and Marie, the leading suppliers in the biscuit market are Britania, Crazy, Priya, Boon Ambro and nutrine.
The objectives of the company include: Profit maximization Cost minimization Quality More employment Time delivery Consistency in sales and service
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The activity of CRYPTMS has been diversified with the establishment of the following units:
It was established to produce the packing materials for the company. This is capable of producing quality packing cartons allied materials.
E.
This was established in the year 1993 as an independent and professionally managed marketing organization. This unit is having its head office at Cochin. The marketing activity of the CRYPTMS Group is carried on by these units. Shared values Guiding concepts, fundamental ideas around which a business is builts must be simple and usually stated at abstract level.
Vision statement
Quality products through continuous improvement
Mission statement
Spreading quality sweets throughout the world
Social Activity
The company is doing a number of social activities and provides a remarkable contribution to the society. The company had a sponsored award at Taluk Hospital, waiting sheds at THODUPUZHA Private Stands other Places. The activities have gained much appreciation from the society.
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CRYPTMS at present
CRYPTMS plays a commendable presence in the industrial sector of KERALA and has got a presence in the national market too. There are more than 1000 employees out of which 250 are in management sector. The company has around 2000 wholesalers and 3500 recognized retailers through KERALA, TAMILNADU, ANDRA PRADESH, KARNATAKA and MAHARASHTRA. During the first stage itself the company recorded sales of Rs. 508 cores as a progressive company. The company has recorded a turnover of the year 2008-2009
In the national market there are 500 employees with a strong network of 200 distributors throughout KERALA, TAMILNADU, and ANDRA PRADESH. The infra structure facilities are considered as the best among KERALA based companies. The group is in the way of fast expansion and diversification and has entered into an expert arrangement with MIS exporters USA and Sigma International in Far East market foreign collaboration being sought for new product. The basic philosophy hanged by CRYPTMS Confectionaries is the optimum, utilization of resources maximum productivity and efficiency. CRYPTMS is trying for further expansion and diversification. It has entered into an export management with Omni export and the international markets are USA Singapore etc... Foreign collaboration is sought for introducing more products into the markets. Every year the company is aiming at an annual growth of 25%.
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CRYPTMS group is being financed by KERALA State Industrial Corporation, KERALA State Finance Corporation, SBI and CANARA bank both for capital investment and working capital requirement. The company has a paid up capital of 44.78lakhs.Fixed assets contribute to about 90.28lakhs. This consists of land at Thodupuzha, factory and office building plant and machinery, furniture and fixtures at factory and office, electrical fittings at office, vehicles etc... Depreciation is following the return down value method. The long term loans are provided by KFC. The company follows mercantile system of keeping books of accounts. All the transaction are dealt through cheque, bills of exchange and demand draft etc... The excise duty is paid in advance.
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Organization structure
Board of Directors
Managing Director
Executive Director
Financial Officer
North Area
Central Area
South Area
Sales Officer
Sales Officer
Sales Officer
Supervisor
Supervisor
Supervisor
Representative
Representative
Chart no-1 Showing organization structure
Representative
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6. FUNCTIONAL DEPARTMENTS
PURCHASE DEPARTMENT PRODUCTION DEPARTMENT PERSONNEL DEPARTMENT MARKETING DEPARTMENT FINANCE DEPARTMENT RESEARCH AND DEVELOPMENT DEPARTMENT
6.6
6.1
PURCHASE DEPARTMENT
The purchase department plays an important role in an organization because
purchase has its effect on every vital factor concerning the manufacture, quality, and cost, efficient and prompt delivery of goods to customers. Purchase is the most important function of material management as the movement an order is placed for the purchase of 23
materials; a substantial part of the companys finance is committed which affect cash flow position of the company. The purchase system is centralized in CRYPTMS. Centralized purchase department means that all the purchase functions are routed through one department. This means all purchase should be made by the purchase department to avoid duplication, overlapping and non- uniform procurements. Purchase is the most important function of materials management as the movement an order is placed for the purchase of materials, a substantial part of the companys finance is committed which affect cash flow position of the company.
6.1.1
Store Keepers
Purchase Assistants
Helpers
Chart -2
To purchase proper quality of materials, to have minimum possible wastage of material & loss in production.
To develop good supplier relationship which will ensure the best terms of supply of materials
To make purchase competitively and wisely at the most economical price To make continuous availability of materials so that there may be uninterrupted flow of materials for production.
3. Where to purchase? 4. How much to purchase? 5. At what price to purchase? To perform these functions effectively, purchase department follows the following procedure: Exploring the source of supply and choosing the supplier Preparation and execution of purchase order Receiving and inspecting material Checking and passing of bills for payment Receive the purchase Requisitions.
6.2
PRODUCTION DEPARTMENT
The production process of CRYPTMS is carried out in its plant situation at THODUPUZHA. The main raw material used for production is liquid glucose and sugar. The other ingredients used in the production are milk products, vegetable fat, coconut
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powder, Chocolate coco paste, flavor etc. Different ingredients are added according to the nature and type of toffee and candies. Procurement of raw materials is one of the responsibilities of the production department. With the help of a bin card the daily stock of raw materials are accessed and recorded. A minimum quantity of stock is determined for each of the ingredients. Once the reorder level is reached, purchase order is placed.
6.2.1
Board of Directors
Supervisor
Plant Officer
Machine
Workers Helpers
Chart -3
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Perform inspection and tests at selected points in the production process Assure that purchased materials conform to the requirements of purchase order and specifications.
Establish points of inspection and test at selected points in the production process
The cooled mass is fed into the batch roller which consists of three cylindrical rods that taper towards one end and rotates in both directions. The batch roller makes the cooled mass into a cope like form and is passed through size where the cope is shaped into required size. It is then passed through forming machine or cutting machine where the candies or toffees are cut into desired shape. After cutting, it is passed through the conveyer belt which is equipped with drying blower, where air is blowing to make the candies separated each other. Then it is ready for packing. The candy items are packed readily. Toffees are packed only after natural curing. Curing machine and wrapping machine are used for this. The products are packed in kg or 1 kg packets. They are stored safely at the go down.
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RESPONSIBILITIES OF SUPERVISOR
Ensure that all out sourced items are received at the respective godown Ensure all out sourced items are checked, packed, and stocked correctly. Oversees duties of packing and dispatch supervisors Informing export department regarding the position of the order well in advance.
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Workers are the back bone of the organization. The organizations object can be achieved through the development of the people of the organization. The company gives importance for employee welfare and individual development of them. The organization promotes the concept of participative management, especially in the quality circle, The employees of the organization can be classified as Managerial, Technical, factory workers, office Administrative staff and security staff. The workers are again classified into skilled, semi- skilled and unskilled workers. The company provides training facilities to employees. They provide on the job training to the workers for a period of one year with stipend and are promoted as probationary workers for the period of two years. After the completion of this period, on the basis of supervisors report. Able employees are permanent workers.
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6.3.1
Technical staff
Managerial staff
Factory workers
Office &administrative
Skilled workers
Un skilled workers
6.3.2
Remuneration Performance appraisal Promotion and transfer Financial and non financial incentives Placement of manpower Ensuring job satisfaction Optimum utilization of manpower Keep peace with new development
Salary of the staff consists of basis pay and HRA. For marketing staff, a certain percentage of the sakes turnover is given as commission. The workers are paid according to sale. It consists of basic pay, fixed DA and variable DA. They also providing with ESI benefits The employees are promoted on the basis of performance appraisal and seniority, the company provides Health, welfare and safety measures to the employees. Uniform is given every year to the workers. The company also runs a canteen for the employees where subsided food is supplied during the working hours.
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6.4
MARKETING DEPARTMENT
It is the most complex and challenging function to be performed by every business firm. It is the process of finding and fulfilling consumer desires in such a way to profit to the organization and to satisfy the customers. Marketing is the analysis, planning, implementation and control of programmes designed to bring desired exchange with target audiences, for the purpose of personal and mutual gains. It relies heavily on the adaptation and co-ordination of product, price, promotion and place for achieving response. achieve
MARKETING SEGMENTION
Once the market has been identified, it becomes easy for an organization to make a product that satisfies customers and differs from those of competitors. The market segmentation is the strategy that subdivides the largest market in to subgroups of consumers with definable, distinct and differentiated marketing programmes for each subgroup in order to enhance satisfaction to consumers and marketer. The market for toffee and candies are segmented according to age behavioral patterns, usually kids and teenagers are the potential consumers of these products. Marketing concentrates on this group. Any product at its introduction stage brings only a low profit due to the expenses in sales promotion. Similarly to capture the market a lot of changes can be done to the existing product, like changes in shape cover, change in color etc.
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6.4.1
Board of Directors
Managing Director
Executive Director
Marketing Manager
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PRICING
The slight changes in the candies affect the sales of candies and toffees due to the cut thought competition in the market. Thus the price depends on many of the factors such as: Competitors price Cost of production Buying pattern of the employees Distribution channel
Some product of the company gets high profit other get a less profit. Even then for the existence in the market and to push up the sales of other products, the company continuous to sell those products also in the market.
DISTRIBUTON
CRYMPTMS has more than 50distrbutors all over KERALA. For proper distribution the entire market is divided into different zones under district supervisor.
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DISTRIBUTION CHART
FACTORY
WAREHOUSE
DISTRIBUTORS
WHOLESALERS
RETAILERS
CONSUMER
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ADVERTISEMENT
It is the processes through which the consumers are getting information about the product advertisement persuade the consumer to buy the product. It increases the sales and helps in creating a brand name and consumer loyalty.
Informative or competitive Product oriented or company oriented The informative advertisement gives information about the product, competitive
advertisement tries to put down the competitors products. Similarly the product is alone, where as the company oriented advertisement focuses on the whole product of the company or the company as a whole.
CRYPTMS spent large amount on advertisement. The advertisement effort a=can be channel zed as follows: Boarding and boards Wall painting TV and Radio Side panels on KSRTC Buses
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COMPETITORS OF CRYPTMS
In KERALA market CRYPTMS enjoys the first position. Other competitors include TRIFFANI RUBY CRAZE FOSTE
It is observed that out of total sales volume of CRYPTMS, 18%happy BRITHDAY are sold more by the retailers and then comes 16% LOVE and 15% clairs, 13% PRADAMAN, 11% COFFEE CUBES, 7% CARMEL, 6% ORANGE TREAT, 5% SUPER LACTO and 3% Coconut cookie, HAPPY BRITHDAY, LOVE, ECLAIRS are selling in large proportion. Super lacto and coconut cookie are sold in very less proportion.
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6.5
FINANCE DEPARTMENT
Availability of sufficient funds at the required time is the key of success of a concern. As a matter of fact finance may be said to the circulation of the economic body making possible co-ordination between the different activities. The credit of the success of CRYPTMS goes to the Finance Department because of the efficient administration of the firms financial resources and its clever utilization helps to make successful completion each year business targets.
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6.5.1
BOARD OF DIRECTORS
MANAGING DIRECTOR
EXECUTIVE DIRECTOR
FINANCE MANAGER
ACCOUNTANT
CASHIER
CLERK
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6.5.2
capital resources of the organization. Since business firms are profit seeking organization, their functions are to maximize the companys wealth. The primary functions are: Profit maximization Maximization of returns
The current asset of the company includes sundry debtors, inventories, loans and advances, cash in hand and cash at bank. The current liability of the company are sundry creditors, liability on salary, sales tax etc...
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To provide information to tax authority like sales tax, income tax, central excise etc...
e. Revenue recognition i. Revenue from sale of goods is recognized from passage of title to the customer, which coincides with delivery
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f. Earning per share EPR is calculated by dividing earning after tax by number of equity shares held during the year. g. Foreign exchange earnings It is converted at the rate of exchange prevailing on the date of transaction. h. Income tax Current years tax is determined in accordance with income tax Act 1961.
SOURCE OF FINANCE
Shares, revenue and surplus and loan funds are the main sources of funds. Loans are sourced mainly from Canara Bank.
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CRYPTMS has a fully equipped and well staffed research and development division and complement of the most modern and sophisticated machinery to test the quality efficiency. This has been possible through a systematic R&D programme under the able guidance of the technical officer. The research and development department has evolved stringent methods for analyzing and testing raw materials and end products. A dedicated term of research scientists and quality experts are engaged in research and development of new formulation and standardization of sweets.
SPECIFIC AREAS
Raw material standardization Development of new products Safety and efficiency study of new formulation
BENEFITS
Increasing the quality of products Development of new products Continuation of new product development Standardization of quality parameter of existing range of product.
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7.
SWOT ANALYSIS
STRENGTH
High availability High quality of product at lower price The good will of the company Good & efficient marketing system Good customer relationship Excellent brand image
WEAKNESS
Limitation of production capacity Limited market penetration Less variety of chocolates, toffees, such as bar chocolates,
lollipops etc
OPPORTUNITY
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THREATS
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8 FINDINGS
The majority of workers do not attend any kind of labour work by taking leave The majority of the workers are male The average no. of days of leave taken by the employees in a month is in between 3-5 days The high proportion of the workers has higher secondary education Only satisfactory employer employee relationship exists in the organization The majority of workers are married The majority of workers are not satisfied with the leave facility The majority of worker are ordinary workers The workers are not satisfied with the training facilities The majority of workers are having the opinion that present salary is not sufficient The workers have good opinion on the work conditions The results of the study indicate that the majority of workers belong to the age group of 31-4
8. SUGGESTIONS
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Introduce more customer benefit programmes More training programmes can be conducted for the employees to improve the efficiency of the workers Introduce sticker and tattoos to attract more customers particularly in children The company has to expand the market to the other areas The company must concentrate on advertisement that helps to increase the demand for the product in the market The company has to maximize the production to its capacity of 110 tones and thereby the company can reduce its cost. Brand awareness among the consumers is very poor, so that the company should take the effective measures. Company should concentrate on welfare programmes.
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CHAPTER -9 CONCLUSTION
9. CONCLUSTION
The six departments play an important role in the development of the company. The worker and the other officials work for the attainment of the objectives of the company. The commitment and efficiency of the employee helped CRYPTMS in capturing a highly competitive market. The product diversification enables the company to get prominent place in the corporate entity The sales can be increased with the help of advertisement .and other sales promotion techniques. This helps the customer to become aware about the product.
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The productivity can be increased with the help of complete automation of the production process. Strict quality control with the help of modern equipment will enable the company to enter the international market. Training in CRYPTM has enabled me to understand various needs of organization and how important it is to have a right relationship between the employee and employer or the management The study was conducted with a view to understand the functioning of various departments in the organization set up. The study gave an in depth knowledge about the establishment and functioning of administrative and related functional departments at cryptm confectionery pvt Ltd
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CHAPTER 10 BIBILOGRAPHY
http://finance.indiamart.com
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