kerala solvent extractions limited
Post on 04-Apr-2018
245 Views
Preview:
TRANSCRIPT
-
7/29/2019 Kerala Solvent Extractions Limited
1/53
[1]
KERALA SOLVENT EXTRACTIONS LIMITED
An Organisation Study Report submitted in partial fulfilment of the
requirements for the MBA (Full time) Degree of the
Anna University, Chennai
Submitted by
Dinoop Devaraj
Reg No: 722711631025
Batch 2011-2013
Sree Narayana Guru Institute of Management Studies
(Anna University, Chennai)
Palakkad Main Road, K.G. Chavadi
Coimbatore - 641105
July 2012
-
7/29/2019 Kerala Solvent Extractions Limited
2/53
[2]
DECLARATION
I hereby declare that the organizational study report on KERALA SOLVENT
EXTRACTIONS LIMITED, IRINJALAKUDA is a bona-fide record of work done by
me, in partial fulfillment of the requirements for the award of the degree of
Master of Business Administration under the supervision of Mr.M.D Johny,
Personal Manager, KSE LTD and Asst.Prof Ms. Devi Premnath, Sree Narayana
Guru Institute of Management Studies, and that no part of this report has
formed the basis for award of any Degree, Diploma, Fellowship or other similar
title or recognition in any other institution.
Place Dinoop Devaraj
Date
-
7/29/2019 Kerala Solvent Extractions Limited
3/53
[3]
ACKNOWLEDGEMENT
I would like to take this opportunity to express my profound gratitude to all the
people who have helped me with sound advice and able guidance throughout
the completion of my organizational study report.
First and foremost I express my thanks and gratitude to the god for successful
completion of my organizational report.
I would like to record my obligation to my project guide Asst.Prof. Ms. Devi
Premnath, whose immense support, valuable suggestions, guidance,
encouragement and resourceful help for this organizational study.
I would like to specially thank Mr. M.D Johny, Personal Manager KSE Ltd., for
his whole hearted support and cooperation.
My sincere thanks to all the directors and staff of KSE Ltd, Irinjalakuda for
permitting me to do the project work in their company and for their kind
cooperation.
I would also like to thank teaching and Non-teaching Staffs for their supportwhich enabled me to complete this organizational study report successfully.
-
7/29/2019 Kerala Solvent Extractions Limited
4/53
[4]
TABLE OF CONTENTS
CHAPTERS TOPICS Pg.NO
1. INTRODUCTION 1
INTRODUCTION TO THE STUDY 2-3
OBJECTIVES OF THE STUDY 3
SCOPE OF THE STUDY 4
LIMITATIONS OF THE STUDY 4
2, INDUSTRY PROFILE 6-7
3. COMPANY PROFILE 8
INTRODUCTION TO KSE LTD. 9-13
VISION AND MISSION 13-14
STARTING OBJECTIVE 14-15
PROMOTERS 15
-
7/29/2019 Kerala Solvent Extractions Limited
5/53
[5]
ORGANISATION STRUCTURE 16
AN EXCEPTIONAL RANGE OF PRODUCTS 18
COMPETITORS 20
4. FUNCTIONAL DEPARTMENTS 22
PERSONNEL DEPARTMENT 23-30
FINANCE DEPARTMENT 31-36
PRODUCTION DEPARTMENT 37-41
PURCHASE DEPARTMENT 42-44
MARKETING & SALES DEPARTMENT 45-52
QUALITY CONTROL DEPARTMENT 53-55
STORES DEPARTMENT 56-58
5. SWOT ANALYSIS 59-62
6. CONCLUSION 64
7. BIBILOGRAPHY 65
-
7/29/2019 Kerala Solvent Extractions Limited
6/53
[6]
LIST OF FIGURES/GRAPHS/CHARTS
S.NO: CONTENTS Pg.NO
1. ORGANISATION STRUCTURE 16
2. GENERAL MANAGER 17
3. PERSONNEL DEPARTMENT STRUCTURE 24
4. FINANCE DEPARTMENT STRUCTURE 32
5. PRODUCTION DEPARTMENT STRUCTURE 38
6. PURCHASE DEPARTMENT STRUCTURE 43
7. MARKETING & SALES DEPARTMENT
STRUCTURE
46
8. QUALITY CONTROL STRUCTURE 54
9. STORES DEPARTMENT 57
-
7/29/2019 Kerala Solvent Extractions Limited
7/53
[7]
1. INTRODUCTION
INTRODUCTION TO THE STUDY
Organization is viewed as a group of persons for achieving its goals. The study
about organization is termed as organization study. Organization affects the
quality of human life in modern society. The study of organization is thus very
essential for understanding the behavior of human being.
Organization can be studied in two perspectives that are micro and macro. In
micro perspective, the focus of study is on individuals. It concerns itself with
each individuals psychological makeup, his interaction with other individualsand groups. The micro view of individuals in organization is recognized as a
discipline called organizational behaviour.
The macro view considers organization as the unit of analysis in place of an
individual. It is concerned with organization as the unit of analysis in place of
an individual. It is concerned with organizational goals, organizational
structure, technologies used in organization and how organization interact
with the environment. The macro perspective is recognized as a discipline
called organizational theory. Both these aspects taken together to present a
complete picture of organizational study.
The organization study is a relevant part of our MBA program; this would
enable to meet and attain a practical and real time feed of various aspects
concern and to relate it to be concept and theory studies in the classroom. This
exercise would help the future managers to meet the challenges lying ahead.
All organizations are required to handle multiple problems and procedures.
The intention of an organization is to overcome these hurdles.Different techniques are being employed by every organization to accomplish a
favourable organization climate. It is the study of the culture and sub culture in
all dimensions. The study is conducted to know the functions of the
organizations. It is conducted in KSE LTD, IRINJALAKUDA.
-
7/29/2019 Kerala Solvent Extractions Limited
8/53
[8]
OBJECTIVES OF THE STUDY
* To get an idea about the organization
* To familiarize with different management activities
* To get an idea about the authority structure and effectiveness of thecompany
* To analyse the strengths, weakness, opportunities and threats of the
company.
* To study the functional aspects of the department of KSE LTD.
SOURCE DATA
There are mainly two types of data are used for this study are:1. Primary Data
* Observation
* Unstructured Interviews
2. Secondary Data
Secondary Data are those data which are already collected by someone else.
They are collected from journals, existing records, and files report of the
company.
SCOPE OF THE STUDY
Scope of the study is immense as it is named at covering the entire operation
of plant and workers department in the organization. The study gives an
insight in to the day to day operation and management of the organization.
LIMITATION OF THE STUDY
1. The researcher could not see all the employees personally and hence the
research could no collect the opinion of all the employees.
2. The top management was reluctant to disclose matters related to the
internal affairs of the company
-
7/29/2019 Kerala Solvent Extractions Limited
9/53
[9]
2. INDUSTRY PROFILE
Cattle play a vital role in the economy of India. Cow and bullocks are regarded
as the foundation of agriculture in India. Cattle feed supplies the motive powerfor almost all agriculture operations such as ploughing, lighting water from
wells and the transport of produced to the market. They provide most of the
manure used by the farmers in India and often enable them to earn some this
during this spare time by carting for hire; they again yield valuable product such as milk,
butter and ghee. The unawareness of farmers about the proper feeding methodsof cows affects the milk productivity cows in rural areas. Due to this reason the
importance of cattle feed industry has been increased in India.
Indian livestock feed industry, though quite old, is still in a very primitive stage, as it is
supplying only about 5 % for cattle feed, and 30% for poultry feed in India. The
bulk of the feed is being produced by un-organized sector compressed of home andcustom mixers. Our human population is ever growing and more people are likely to
consume more animal product as the economy and income of the people grow. Thisexpands the market for animal products and therefore compound feed also.
India is deficient in green fodder. The increasing allocation of arable land and
other natural resources for growing food grains, cereals, and oil seeds for
human consumption and cash crop for exports, the problem of shortage of green
for animal feeding is bound to increase. This opens up prospects for compoundlivestock industry.
Feed industry come into existence in India in 1961 with establishment of feedplant in Ludhiana, India. The animal feed industry has developed since
the beginning of 20th
century, initially supplying feedstuffs only for ruminants and
later, as demand developed, also for pigs and poultry. In the past feed mills
were usually built at major ports or close to inland water ways. Many of the raw materials
were imported, including serials such as wheat, barley and maize, and proteins
from groundnuts, linseed, cottonseeds and fishmeal. Some home produced
materials were also used generally by products of the food industry. These
included wheat feed, left over from flour manufacture; oilseed cakes and meal,
from the manufacture of margarine and cooking oils. It can be seen as the compound feedproduction for cattle increased between 1974 and 1983. This increase was
influenced by the financial incentives for dairy farmers to produce as much milk
as possible, there by requiring large volume offered for their cattle.
The quality standards of Indian feeds are high are high and up to internationallevels. The industrys production is about 3.0 million tones, which represents
only 5 % of total potentials, and feed exports are not very high. The feedindustry has modern computerized plants and latest equipments for
analytical procedure and least cost ration formulation, and its employs the latest
manufacturing technology. In India the most research work on animal feed
-
7/29/2019 Kerala Solvent Extractions Limited
10/53
[10]
is practical and focuses on the use of by products the upgrading of ingredients
and the enhancing of productivity
Feed manufacturing on commercial and scientific basis started around1965 with
the setting up of medium- sized feed plants in northern and western India. Feed
was produced mainly to cater to the need of dairy cattle. India is currently self sufficientin live stock feed and does not depend on imports. Instead, the country exports
large quantities of solvent extracted metals, which are a major source of foreign
exchange earnings. BIS has produced guideline feed standards and the industry
also has its own guidelines. Currently there is no compulsion to use BIS standards, but
the central government has been advising states to introduce their own
regulatory standards.
GROWTH OF ANIMAL FEEDS INDUSTRY
The manufacturing of feed in the organized sector in India began around the
mid- sixties with the setting up of medium- sized feed plants in the northern and
western parts of the country. The early seventies established sixty feed factories
in the country and their number increased manifold to over 400 by the late nineties. Thepace of increase was much faster in 70s (compound annual growth rate12.7%) as
compared to the subsequent decades. The industrial deli censing in 1991as part
of the economic reform package in India did not impact on the expansion
of feed industry. The 6.3% rate of expansion in pre deli censing period (1976/77 1990/91) remained much the same at 6.88% during the post de-licensing hadon the food processing industry in general and dairy industry in particular where large
number of new factories/plants came up after 1991 -1992.
FEEDING PRACTICES AND THE USE OF COMPONENT
FEED
In India the term Compound Feed refers to feed that is nutritionally balancedand has been manufactured using the facilities of an analytical laboratory and under thesupervision of nutritionists. There are also a large number of small scale feed
mixers who produce feed for local consumption. Such feed is termed Self Mixed Feed
or Home Mixed Feed.
CATTLE FEED
The productivity of the cattle is limited because of their poor genetic make up , so highquality compound feed ( Industry Feed ) may not necessarily generate a
-
7/29/2019 Kerala Solvent Extractions Limited
11/53
[11]
significant improvement in productivity and this has hampered growth of a
cattle feed industry. Instead they compromise by using such feed in proportion
of 5 to 60 percent, making up the balance with their own formulations. It is only in the case
of highly productive animals that compound feed has been able to show its real potential
and the importance of technology has been demonstrated. The share of compoundcattle feed manufactured by the industry in relation to the overall potential , is low for the
following reason; The cattle population is fragmented and spread over large part of the
country. Farmers low level of education and strong traditional beliefs mean that
there is generally little awareness of compound cattle feed.According to Extract From Animal Feeding Safely , report of an FAQ expert
consultation present condition of cattle feed is worldwide, tonnage of feed
exceeds 4 billion tons per annum of which some 550 million tons are milled
feeds . The largest portion of the 4 billion tons of feed involves subsistence
farming on the Indian subcontinent and Asia.
India is currently self sufficient live stock feeds and does not depend on
imports. Instead, the exports large quantities of solvent extracted meals whichare a major source of foreign exchange earnings
-
7/29/2019 Kerala Solvent Extractions Limited
12/53
[12]
3. COMPANY PROFILE
A BRIEF HISTORY OF KSE LIMITED
KSE ltd is a public limited company is a incorporated with substantialcapital participation by the Kerala State Industrial Development Corporation
ltd.Trivandram and though loans from industrial finance corporation of India,
New Delhi. The company is engaged in the solvent extraction of ground nut cake and rice
bran also. The oil thus obtained is moved for industrial purpose into the market. In addition
is full-fledged livestock feed division engaged in the production of ready mixed Cattle Feed.
The Company was registered in the year 1963. In 1973 the solvent extraction
plant was started with processing capacity of 60 metric tons of cake per day. In
1976the company stated production of ready mixed feed with the production
capacity of 50 metric tons per day and in 1983 the company increased the production ofcattle feed to 120 mt per day which has recently been increased to 180 tons per day by theconstruction of a fully automated computerized plant. In 1988 company started
a solvent extraction and cattle feed plant at Swaminathpuram near Palani,
with production capacity of 150mts of cattle feed per day and processing
capacity of 100-120mts of expeller extracted deoiled cake.In 1972, the company
lased new cattle feed plant at pothannur near Coimbatore with a production capacity of 80tons per day and in 1995 company has leased a plan in Mysore with the capacity of 50
tons per day. In 1996 the company started a new plant I Vedagiri at Kottayam in
Kerala with the capacity of 240 tons per day. Kerala solvent extraction ltd comes outwith a premium public issue on March 1993 which was oversubscribed, through
the stock markets are showing a low trend, now Kerala Solvents share is still
quoted at Rs.140 per share whose face value isRs.10. This reflects theconfidence of investing in the company. It was in 1963 that Kerala Solvent Extraction
limited now known as KSE ltd entered the solvent extraction industry setting up the
very first solvent extraction plant in Kerala. The traditional coconut oil industry
in state was facing a decline then. Though the largest producer of copra in the
country, as much as 80% of it, Kerala the infrastructure to exploit the potential
of its abundant produce. While the oil industry in other parts of the country werethriving. The Dr. Lokhanathan committee, set up to feasibility of starting new
industries in Kerala, recommended the establishment of 3 solvent extraction
plants. And one of them, in Thrissur district. The oil mill owners in and around
Irinjalakuda, who were thinking in similar lines saw the opportunity and look the
initiative to establish a solvent extraction unit. The solvent extraction plant wenton the stream in 1972 and in 1976 a new plant was setup to manufacture ready mixed
cattle feed, which was a pioneering step. Since then there, was no looking back. The last
3decades have seen KSE emerging as a leader in solvent extraction and ready
mixed cattle feed in the county and though these years of consolidation and
diversification KSE has crate a niche for itself. Today KSE commands the
-
7/29/2019 Kerala Solvent Extractions Limited
13/53
[13]
resources, expertise and infrastructure to manufacture a range of live stock feed in
high volumes, coconut oil from coconut cake and refined edible oil. Since the early,
KSE had endeavored to supply its products to customers through extensive
network of dealers and retailers which from a dedicated force behind the
success of KSE. It is matter of pride that KSE is household name today. The KSE isa public limited company having around 6000 shareholders. The board of directors
consisting 10 directors in the executive committee responsible for the
management the article of association of the company empowers the board of
directors of directors to appoint one as the Chief Managing Director. The
company has one Executive Director and one Whole Time Director. The Chief
Managing Director, Executive Director and Whole time Director are the smooth
running of day to day affairs of the company. Strategic decision of the company
are taken by an executive body consisting of the Managing Director, Executive
Director, Whole time Director, General Manager, Finance Manager, Nutritionist
, Marketing Manager, Plant Manager and Purchase Manager. These executives
are professionals with vast experience in their areas of specialization.
GROWTH CHRONICLE OF KSE
1972 - Solvent plant commences operation.
1976 - Mixed cattle feed production begins.
1987 - Cattle feed production reaches 180 tons Introduction of computers in the
factory and office.
1988 - A new mixed cattle feed plant starts operation at Swaminathapuram,
Tamil Nadu with a daily product ion capacity of 180 tones.
1989 - Solvent Extraction Plant of Swaminathapuram unit with a capacity of
120 MTs per day started production.
1990 - Cattle feed production capacity at Swaminathapuram unit increased to
150 MTs per day.
1991 - Palakkad Branch started.
1993 - Enter exports market
1994 - Keyes Forte, the new feed supplement for cattle introduced.
Cattle feed production capacity at Swaminathapuram increased to 180MTs per day.
-
7/29/2019 Kerala Solvent Extractions Limited
14/53
[14]
1995 - Calicut Branch opened.
1996 - 240 TPD cattle feed Plant at Vedagiri in Kottayam District started
operation.Company renamed as KSE Limited. (Formerly Kerala Solvent
Extractions Limited)
1998 - Company acquired its fourth manufacturing unit at Palakkad for
manufacturing Cattle feed.
1999 - A modern CHILDRENS' PARK AND INFORMATION CENTRE was
completed at Irinjalakuda for the benefit of the Public.
Company introduced 'K.S. Deluxe Plus" the Pelleted feed in HDPEbags for Kerala Market.
2000 - Company started production and marketing of Pasteurized Milk and
Milk products from Konikkara Dairy, Trichur District, Kerala and Thalayuthu
Dairy, Palani Taluk, Tamil Nadu.
2002 - Cattle feed production at Irinjalakuda unit increased to 195 MTs per
day.
'VESTA' Ice Cream launched.
2003 - Started production of Cattle feed in a leased plant at Edayar,
Kalamassery.
Cattle feed production at the Swaminathapuram unit increased to 195
MTs per day.
2004 - Acquired Land from KINFRA for starting the new project of 200 TPD
Solvent Plant and 100 TPD Oil Physical Refining Plant at Kinfra
Park, Koratty.
ISO 9001:2008 Accreditation for Irinjalakuda.
2005 - Cattle feed Production capacity at the Irinjalakuda unit increased to
210 MTs per day.
Company acquired property at Mysore.
ISO 9001:2008 accreditation for Vedagiri and Swaminathapuramunits.
-
7/29/2019 Kerala Solvent Extractions Limited
15/53
[15]
2006 - The 200 TPD Solvent Extraction Plant at Koratty commissioned.
100 TPD Physical Refining Plant at Koratty commissioned.
Solvent Plant at Irinjalakuda dismantled.
2008 - Ice cream production unit commissioned at Thalayathu.
2009 - Cattle Feed production capacity at Swaminathapuram increased to 200
MTs per day.
Commissioned Fractionation Plant at Koratty.
Commenced 500 TPD Fully State-of-the-Art German Technology
Animal
Feed Plant at Irinjalakuda.
2010 - Ice cream production unit at Vedagiri commissioned.
OBJECTIVES OF KSE LIMITED
To produce, manufacture ,extract, purchase refine, prepare import ,export,sell and generally to deal in oil from seeds and other oil bearing materialsto carry on the business of refining the hydrogenation of oil and the
manufacturing of by products there from and of trades connected there
with.
To acquire erect, construct, establish operate, and maintain oil mills,extraction plants, and workshops.
To purchase for the purpose of business of the company. Oil expellersdenigrators , filter press , oil neutralizing , washing , dyeing bleaching ,filtration andhydrogen plants , punch machines and other machines .
To purchase, manufacture, treat purchase sell or otherwise deal inoilcakes, washing soaps, toilet soaps, hair oils and timed products.
-
7/29/2019 Kerala Solvent Extractions Limited
16/53
[16]
VISION AND MISSION OF KSE
VISION
We shall Endeavour to maintain leadership through quality products, explore
new avenues in product development and marketing, create a stronger bondbetween the management, Workforce , dealers and customers ,contribute to
social development and rural enlistment, and constantly strive for excellence inall spheres of our activities.
MISSION
To become a marker driving company from market driven company.
Educate and train the livestock frames to practice scientific feeding to
optimize livestock productivity.
To support the development of knowledge based network on the feedrelated activities.
To a culture of innovation and creativity amongst the employees.
To be an active partner in community development program.
To add more Ice-cream production units across Kerala in coming years.
KSE, with a capital base of Rs.36 crores embarks on the expansion to double
its solvent extraction capacity and add a most modern eco-friendly vegetable
refining plant.
KSE
PRODUCTION UNITS
KERALA
KSE LIMITED, Irinjalakuda unit KSE LIMITED, Vedagiri unit, Kottayam KSE LIMITED, Palakkad unit KSE LIMITED, Edayar unit, Cochin KSE LIMITED, Konikkara unit (dairy) KSE LIMITED, Koratty
TAMILNADU
KSE LIMITED, Swaminathapuram unit KSE LIMITED, Thalayathu (dairy) KSE LIMITED, Erode
KARNATAKA
KSE LIMITED, Mysore unit
-
7/29/2019 Kerala Solvent Extractions Limited
17/53
[17]
AWARDS AND RECOGINATIONS
The solvent Extractors Association of India-SEA Award for highestprocessor of coconut cake in India, since institution of the awardcontinuously for 20 years including 2009-10.
Best productivity performance for Cattle feed in India Award fromNational Productivity Council continuously for Eleven Years 1996-97 to
2005-06.
ISO 9001-2000 Certification. Kerala state productivity Council award. Top Cattle feed Award for aflatoxin free feed from The Indian
Association of Veterinary Pathologists (IAVP) and Kerala AgriculturalUniversity.
Tamil Nadu productivity Council Safety Award. Animal Nutrition Society of India Award for Companys contributions for
propagation of balanced compound livestock feed in India.
Industry Excellence Award from the Indian Society for the study ofAnimal Reproduction for the year 2001.
Entrepreneur Award from the College of Veterinary and Animal Sciences.SOCIAL SERVICE AND RESPONSIBILITY
The company gave so many contributions to the country at the time
of uncertainties.
It contributed 5 lakh each for Kargil and Tsunami Fund. As a part of social responsibility the company introduced KS
PARK for the enjoyment and fun children. They are also spending
Rs.50000 in each month for it. Also they were conducting some
competitions for children occasionally.
-
7/29/2019 Kerala Solvent Extractions Limited
18/53
[18]
KSE & ITS PRODUCTS
1.K.S Cattle feed : One of the all times favourites in the cattle feed.There are two forms of Cattle Feed
o Mash formo Pellets formMash form contains
K.S. Super: A Special cattle feed that has won immensepopularity.
K.S. OrdinaryPellets form contains
K.S. Deluxe Pellets: A bypass protein fed with ISI mark, speciallymade for cattle with superior germ plasma and high production
potential.
K.S. Deluxe plus pellets K.S. Supreme pellets
2. K.S Supreme (Refined Sunflower Oil)
3. Jersey Copra Cake: Protein rich, tasty, de-oiled coconut cake.
4. K.S Forte (Feed SupplementTonic): An invigorating feed supplement for
cattle.
5. K.S Mineral Mixture
6. Milk Products
K.S Paal K.S Ghee K.S Curd K.S Butter Milk Vesta Ice Creams
-
7/29/2019 Kerala Solvent Extractions Limited
19/53
[19]
COMPETITORS
In cattle feed sector, competition is high, as government sector company
Kerala Feed set a plant at Kalletumkkara (Irinjalakuda). They have come up
with MSE brand of cattle feed.Other milk making federation of Kerala is also strong competitor of KSE. Other
players in the market are Amul, Godrej, Tata, HLL (Gold Maher brand), Mysore
feeds, Prima.Vesta Ice-cream has also competitors some of them are Joy, Arun, and Uncle
John etc.
In the milk and milk product Sector Company have lot of competitors. In fact
the company is not allowed to compete the market with its strongest
opponent MILMA. Government is showing high protectionism towards Milma.
KSE Ltd is given permission to procure milk only from certain areas of Thrissur
District and it is only allowed to market milk in Thrissur and Ernakulam District.
PROMOTERS
Kerala Solvent Extraction limited has been promoted by the persons
traditionally engaged in the business of oil extraction, trading in the cattle
feed. The Promoters are well known for their quality products.
The Promoters are:
* Mr. M.C. Paul - Chairman and MD
* Mr.T.O.Paul - Executive Director
* Mr.P.K.Varghese - Whole time directors
* Mr.A.P.George - Director and Legal Advisor
Chief General Manager - Anand Menon
-
7/29/2019 Kerala Solvent Extractions Limited
20/53
[20]
ORGANISATION STRUCTURE
DIAGRAM 1 :ORGANISATION STRUCTURE
Board ofDirectors
ExecutiveDirector
ManagingDirector
GeneralManager
FinanceManager
Assistant A/cManag
er
AssistantFinancialManage
r
Clerk
ShareDepartment
PurchaseManager
Executive
officer
Clerk
PersonnelManager
Executive
officer
Clerk
SecurityOfficer
SecurityGuard
MarketingManager
Assist
antSalesMana
ger
Executives
Custom
erService
SalesRepresentative
QualityManager
Chief
Nutritionist
LabAttender
Production
Manager
Engineer
Worker
WholeTime
Director
-
7/29/2019 Kerala Solvent Extractions Limited
21/53
[21]
FUNCTIONAL DEPARTMENTS
The departmentation helps in specialisation of work in
each field.It helps in better planning and better concentration in the particular
work handled by a particular department
The Various Departments in KSE Ltd are as follows:
1.Personnel Department
2.Finance Department
3.Purchase Department
4.Production Department
5.Marketing & Sales Department
6.Quality Control Department
7.Stores Department
-
7/29/2019 Kerala Solvent Extractions Limited
22/53
[22]
PERSONNEL DEPARTMENT
DIAGRAM 2 : Structure of PERSONNEL DEPARTMENT
PersonalManager
ExecutiveOfficer
Officer
Junior Officer
SeniorAssistant
OfficerAssistant
Clerk
SecurityOfficer
SecurityOfficer
SeniorSecurityOfficer
Secutiy
Guard
Watchman
-
7/29/2019 Kerala Solvent Extractions Limited
23/53
[23]
The workers have the important role in existence and the growth of an
organization. So it should be managed carefully. The growth of industries is to
larger and complex units employing various categories of workers created
special problems. Hence, a separate department specialized in the knowledge
of human relations is inevitable.The personnel manager utilizes the maximum individual ability,
promotions of team spirit, develop job satisfaction, reduce labor turnover and
improve production. And also leads to attain the organizational goals the
personnel department of KSE ltd is very efficient and functioning very well
under the control of an efficient personnel manager.
FUNCTIONS
Recruitment Man Power Planning Welfare Functions Grievance Handling Discipline Industrial Relations Job Description Job Analysis Job Specification Training Development Performance Appraisal Career Planning Public RelationRECRUITMENT
The recruitment is done on the basis of the requirement of the company. Atthe initial stage, an expert will be asked to submit a project report on the
requirement & recruitment will be based on the report. The requirement of
employee is based on the request of each department.
The selection committees consist of General Manager, Personnel Manager,
and the Manager of concerned department. On determining the
requirement, notification is given on various media. A written test is
conducted, from candidates those who are selected in 3:1 ratio to the
number of vacancies. Interview is conducted to select apt candidate
-
7/29/2019 Kerala Solvent Extractions Limited
24/53
[24]
Unskilled Workers
He Should be in age group 25 30 years He should not have Studied more than 8th standard He should be reciding within a radius of 5 kms of KSE LTDOffice Staff
He should be graduateShift Engineer
He should be a Diploma holder from ITISecurity Man
He should be an ex-service man in age group of 35 40 yearsTRAINING
KSE LTD gives the job training to the employees. They are kept in
probation for 6 months. If company found it unsatisfactory , then probation
period may be extended. Induction training is given at this period
PERFORMANCE APPRAISALKSE LTD follows a system of performance appraisal. The department
makes appraisal report of the employees, workmen, to the Personnel manager
and confirmation of job is done only after this report
TRANSFER
According to discretion of the management employees or work men
may be transfer from one department to another department or from one
section to another section or from one job to another job
CLASSIFICATION OF EMPLOYEES /WORKMEN
The employees/workmen are classified as permanent probationer, badali, or
substitute, temporary and the casual.
-
7/29/2019 Kerala Solvent Extractions Limited
25/53
[25]
A permanent employee or workmen in one who has engaged on apermanent basis by a return order to that effect and includes any person
who has satisfactorily completed probationary periods of six months
Probationer is one who provisionally employed to fill a permanentvacancy in a permanent or temporary post, otherwise than temporary or
casual employees and continuous as such until he has been notifies by
the management that he is made permanent from the temporary post
after satisfactory completion of the probationary period of the
employment
Badali / substitute are one who is appointed in the post of permanentworkman and the probationer who is temporary absent.
A temporary employee is one who is employed for the work which isessentially temporary nature likely to be finished within a limited
periods or who is employed temporarily in permanent post.
A casual employee or workmen is one whos employment or anoccasional or casual nature and who is not entitled to claim for the
future and continuous employment.
TERMINATION OF SERVICEThe employment of permanent employee/workmen
other than those working under special contract shall not be terminated
without giving 1 months notice in writng either by employee or workmen in
the case of monthly rated and 14 days notice in the case of daily rated
employees or 1 month pay or 14 days pay, as the case may be. Such notice of
payment however will not apply in case of terminated of service consequent
on disciplinary action
Any employee of work men who lives the service
without giving prescribed notice shall be liable to be sued for damages. In case
of termination of Service, the workmen/employees will be entitled for
payment of wages earned by them subject to deduction of amounts due. If any
to the company within 2 days of termination
-
7/29/2019 Kerala Solvent Extractions Limited
26/53
[26]
GRIEVANCE PROCEDURE
All complaints of individual nature regarding payment of wages,
wage calculation, grant leave, overtime, work assignment, working conditions,
confirmation, transfer, interpretation of service agreement and othercompliments of similar nature arising in the course of employment may
constitute grievances and the same shall be redressed in a systematic manner.
EMPLOYEES SELECTION PROCESS
Employees are selected strictly based on their education
qualification, work experience, technical knowledge and age. The company will
do the recruitment by giving the advertisement through:
Newspapers Employment Exchange By promoting their own employees based on their performance.
REMUNERATION
There are 3 types of wage earners
Unskilled but permanent workers gets daily wages Badali workers wage on weekly basis Office staff salary on the last working day of every month
Salary Consists of
Basic pay Fixed Dearness Allowances Variable Dearness Allowances
ALLOWANCES
Dearness Allowance Conveyance Allowance House Rent Allowance Washing Allowance Shift Allowance Canteen Subsidy/ Tea Allowances Leave Travel Allowance Statutory Allowances
-
7/29/2019 Kerala Solvent Extractions Limited
27/53
[27]
STATUTORY ALLOWANCES
1.PROVIDENT FUNDEmployee provident fund have three parts. They are:
Provident fund Pension fund Deposit linked insurance
The employer provides an amount equal to 12% of employees
salary to employee provident fund. 8.33% goes to provident funds
and rest of the amount goes to pension fund. 5% of his salary to
deposits linked insurance.2.BONUS
Company can give bonus in the range of employee salary. KSE is paying
20% of bonus to all employees.
3.GRATUITYAccording to central legislation half month salary for every year service
should paid as gratuity on retirement. Company also joined LICs group
graduate insurance scheme, under this scheme if employees determines
to leave before completing his term in office, gratuity will be paid
considering his remaining years of work as well.
TRADE UNION
Trade Union is association of workers formed with the intension to
protect workers from the exploitation of employers and also to improve the
working conditions.
The main objectives of trade union are to ensure better wages, good workculture and conditions, protection against injustice, labour welfare, peace and
collective bargaining. In KSE 3 trade unions are working they are,
INTUC CITU BMS
-
7/29/2019 Kerala Solvent Extractions Limited
28/53
[28]
EMPLOYEES WELFARE ACTIVITIES
Employee pays Rs.20 per month. The employer also pays 20% per
month towards this fund. This is utilized to give loan, scholarship for students
of employees etc. On the death of employee one month salary is paid todependants towards funeral expenses.
SAFETY MEASURES
For Safety of workers at plant they provided with
Mask First Aid Facility Dust Extraction System in plant, which helps to suck the dust
arising at the time of production
LEAVE AND HOLIDAY
Company allows & sick leaves for non ESI employee. Company allowed 9 days
casual leave for daily rated wages and 11 days for monthly rated employees.
Government has notified 4 national holidays and festival holidays. KSE ltd allow
all these holidays.
RETIREMENT
Retirement age of employee is 58 years. The personnel Department
was seen as a place where the lesser productive employees could be placed
with minimal damage to the organisation ongoing operation. Individual in the
personnel department were perceived as those responsible for planning
company picnics, vacation schedules and retirement parties. Perssonal as an
activity were seen as a necessary but unimportant part of the organisation.
Fortunately things have changed for better and the status of the personnel
department has improved enormously over the year.
-
7/29/2019 Kerala Solvent Extractions Limited
29/53
[29]
FINANCE DEPARTMENT
DIAGRAM 2 : STRUCTURE OF FINANCE DEPARTMENT
FinanceManager
DeputyAccountant
ExecutiveOfficer
Officer
Junior Officer
Senior OfficerAssistant
OfficeAssistant
Clerk
Deputy FinanceManager
ExecutiveOfficer
Officer
Junior Officer
Senior OfficerAssistant
OfficeAssistant
Clerk
Deputy ShareManager
ExecutiveOfficer
Officer
Junior Officer
Senior OfficerAssistant
OfficeAssistant
Clerk
-
7/29/2019 Kerala Solvent Extractions Limited
30/53
[30]
Classification of finance function1. Money Management
2. Record keeping & reporting
3. Control function
4. Auditing function
Aims of finance function1. Accruing sufficient funds
2. Proper utilization of funds
3. Increasing profitability
4. Maximizing firms value
Scope of finance function1. Estimating the financial requirements
2. Deciding capital structure
3. Selecting the source of finance
4. Implementing financial controls
Source of finance
Source means come where the money was come thebusiness there are mainly three source of generating funds.
They are:
Share capital Reserves Bank loan
Accounts department plays a vital role in any organization. KSE Ltd has
an efficient accounting department. The chief finance manager controls
all function of this department. The deciding of accounting policy andtheir implementation is the main duty of finance manager. The main
function of this department are making payments and receipts,
preparation of books of accounts and income tax return, and controlling
all affairs of financial aspects of the organization this department thus
makes all payments to provident fund, gratuity, employees welfare fund
etc.
Company has 8 crore of working capital. In this 6 crore in Irinjalakuda
plant, 1.25 core at Swaminathapuram and 1.75 cores at Vadagiri.
-
7/29/2019 Kerala Solvent Extractions Limited
31/53
[31]
Company keeps as inventory required for production for 20 days
minimum stock.
Company pays wages of daily workers in cash while salaries are paid in
either cash or cheques as per requirements of employees.
KSE follows the cost accounting principles and procedures. Almost all
departments are computerized. All work is done by special application
program developed for use of the company. The main aim of the finance
department is maximum utilization of fund at minimum cost.
Functions of Finance Department
1. Payment of raw materials
In purchasing raw material 90% of the payment is made on the delivery
time. Balance payment is made after checking the quality and quantity
of the material. This needs material receives report. Order bill and lab
report. It includes item, weight, gross quantity, net quantity etc. If the
quality is not satisfactory rebate is charged.
2. General payments
This includes stationary charges, telephone charges, ESI, PF, housingloan, taxes etc.
3. Receipts& cheque collection
This mainly includes sales receipt. The company accepts sales receipts
and Payments in the form of cash, DD, cheque etc. Company has
accounts with 12 banks. The company avails credit mainly from Bank of
Baroda. Company makes all payments by cheque and receives payments
by cheque only, if the amount is more than 25000. As per policy LSE Ltd
not allow sales on credit.
4. Salary payment
Plant workers will get salary on 6th day of the month and office staff will
get salary on 31st of the mount. If an employee needs salary as advance,
he can take 50% of the salary another function of finance department is
to collect or transfer surplus fund to centre unit.
Since from 1976 KSE has been making steady profits and paying
uninterrupted dividend and a yearly 20% bonus to the employees.
-
7/29/2019 Kerala Solvent Extractions Limited
32/53
[32]
Another important function of finance department is preparation of
monthly profit & loss account. This statement called for all board
meeting once in a month. On the basis of quarterly results the company
statutory accounts are published in the leading newspapers. Thus the
financial future of KSE looks secure and bright.
FINANCIAL HIGHLIGHTS2011-12 2010-11
Rs.in Lakhs Rs.in Lakhs
Sales and Other Income 54336.28 45436.07
Gross Profit 2387.83 1446.98(Profit Before Dep and Finance Cost)
Profit before Tax 1587.04 667.31
Net Profit After Tax 1044.93 449.81
Shareholders Equity 3971.18 3335.35
Capital Employed 4898.67 4498.23
Gross Fixed Assets 7308.62 7194.27
In Rs. In Rs.
Shareholders equity/share 124.10 104.23
Earnings/share of Rs.10 each 32.65 14.06
Dividend Rate 110% 100%
-
7/29/2019 Kerala Solvent Extractions Limited
33/53
[33]
PRODUCTION DEPARTMENT
Figure 4.3: Structure of Producation Department
Production Manager
Engineer
Plant Engineer
Shift Engineer
Main Foreman
Boiling
Operator
MaintainanceOperator
ElectricalForeman
Electrical
Supervisor
Store Officer
Store
Supervisor
GodownExecutives
Officer
-
7/29/2019 Kerala Solvent Extractions Limited
34/53
[34]
All functions relating to production is managed by a separate department. The
main production of KSE is cattle feed. Production process is controlled by
computerized systems using microprocessors. The unit has a well-equipped
modern laboratory.
SOLVENT EXTRACTION PLANT
Preparatory section
The raw material (coconut oil cake) is brought here and is cut to size from here
oil cake is transferred to the extraction plant through the elevator.Extraction
Here, continuous counter current extract is used for extraction. Hexane is
used as a solvent. Cake is removed in left through the extract while heatedhexane at 63-70oC is sprayed on it. It takes 1 hour for the cake to pass through
the extract by this time most of the oil cake would have dissolved in hexane.
The mixture of oil and hexane is called Misulla. Oil is separated from hexane
by distillation. Oil is boiled at 3000C while hexane is boiled at
60.2*C. Following this function all hexane from oil is removed. Hexane in gas
form is condensed in an condenser and used again. Cake is removed of its
hexane by drying in a drier. Before packing this deep-oiled cake a little water is
sprayed upon it as hot cake cannot be packed as such.
CATTLE FEED PLANT
Using the de-oiled cake, which is a by-product of solvent extraction process,
starts steady mixed cattle feed production. Cattle feed is produced, using more
than 20 raw materials. The formula for cattle feed production is formulated by
nutritionist. The formula will exchange according to the availability of the raw
materials. Seasonal fluctuations affect the availability and the price of the raw
materials. The important raw material used for this purpose is coconut oil
cake, soya bean cake, cotton seed cake, maize, rice, wheat barn, and nutrientsetc.
RAW MATERIALS
The various raw materials used for production of cattle feed are as follows:
Maize Tower Sun flower extraction DORB Rice polish
-
7/29/2019 Kerala Solvent Extractions Limited
35/53
[35]
De-oiled coconut cake Ground nut extraction Soya bean meal Tamarind seed powder Wheat bran/flakes Rape seed extraction Ragi powder Cotton seed extraction Molasses Calcite powder Urea Salt MineralsIn the cattle feed production MMCP formula is used, i.e., 4 steps of
production process.
M- Milling M- Mixing C- Cooking P- pelleting
Cattle feed is produced in two forms:
* Mash form
* Pellet form
The raw materials are mixed and milled together. Mash form requires
only these two processes to make it in the pellet form. The mixed raw
material is cooked and converted in to pellet form.
-
7/29/2019 Kerala Solvent Extractions Limited
36/53
[36]
PURCHASE DEPARTMENT
Figure 4.4: Structure of Purchasing Department
PurchaseManager
ExecutiveOfficer
Junior Officer
SeniorAssistant
Officer
Office
Assistant
Clerk
-
7/29/2019 Kerala Solvent Extractions Limited
37/53
[37]
The purchase department places an important role because purchasing has itseffect on every vital factor. Its function is procure material supplier, and
service, machine, and tools at most favorable terms consistent with maintain
the desired stand of quality. Purchasing is an important function, because for
the purchase of materials a, substantial part of the companies finance is
committed which affects cash flow position of the company. The purchase
committees make important decision about purchasing raw material for the
cattle feed production.
FUNCTIONS OF PURCHASE DEPARTMENT
1. To give order for raw material
2. To ensure continuous availability of raw material so that there may be
uninterrupted flow of material for production
3. To contact brokers all over India to know about market price
4. To purchase proper quality of raw material at reasonable standard
5. To ensure weight of the purchased goods and storing it in proper place for
easy retrieval and use6. To develop alternative sources of supply, so that material may be
purchased from that alternative source, if a particular supplier fails to supply
the material.
Purchase of raw material for cattle feed production is an important
procedure of purchase department. Therefore, the purchase of raw material is
on requirement for production. The raw material is purchased according to the
availability and capacity of go down. The nutritionist prepares the formula for
the production and the raw material arranged on the basis of it. The formula is
prepared on the basis of availability of the raw material.
The other important purchase procedures are placing order, price of raw
material, purchase contract and material receipt.
-
7/29/2019 Kerala Solvent Extractions Limited
38/53
[38]
MARKETING AND SALES DEPARTMENT
DIAGRAM 5 :STRUCTURE OF MARKETING DEPARTMENT
MarketingManager
SalesManager
SalesExecutive
SeniorAssistant
OfficeAssistant
Clerk
CustomerService
Manager
SalesExecutive
SeniorAssistant
OfficeAssistant
Clerk
-
7/29/2019 Kerala Solvent Extractions Limited
39/53
[39]
The vision of the marketing department is to find project and to give tenders
according to the marketing condition and on the basis of the previous project
in order to get good turn over for the organization and is also the basis for the
future trends in the organization. Marketing department can also study the
future trends of the economic condition and government policy in order torespond to tenders. The department has to plan whether to go for low cost or
high cost.
FUNCTIONS OF MARKETING DEPARTMENT
To conduct market survey for the future requirement. To make detailed survey on the trends.
To maintain the relationship with customer and their agencies To maintain good relationship with government
MARKETING MIX
Product Price Place Promotion, are the factors of the marketing mix.
This four Ps are equally important for the marketing of the product. Ifany P is weak, the products will be a failure. Marketing activities taken
place in KSE involves the market survey. Information is collected from
the market through the market survey . in order to know the pulse of
the market information is collected from various sources like dealers,
distributors, competitors, newspapers, journals and magazine and sales
force.
The important marketing strategies are:-
1. Pricing strategy
2. Product strategy
3. Distribution strategy
4. Promotion strategy
-
7/29/2019 Kerala Solvent Extractions Limited
40/53
[40]
SALES PROCEDURE
The purpose of marketing is to promote sales.
The important procedures taken place in the sales division of the department
is:-
First procedure is receipt of incident with demand draft Entering into order book. Next step is preparing the dispatch plan Dispatch vehicle is arranged Delivery order is issued Weighting before and after loading Invoicing preparation
SALES OF CATTLE FIELD
Cattle feed id bi-furcates into mash form and pellet form. KSE has an
exceptional range of products. Cattle feed in mash and pellet forms are divided
according to their quality.
K.S supreme pellet has got ISI mark. De- oiled cake marketed in the name
jersey copra cake has also feed supplements KS forte. Sales of all products
are through authorized dealers.
Ex-factory
In ex-factory sales all risks are borne by the party from the factory gate
itself. In this risk are borne by the company up to parties go down ex-factory
sales are common.
Customer Induction
It is a difficult process in cattle feed industry. The following methods are
adopted by KSE in the various situations.1. Demonstration/customer education
This is intended to give first-hand knowledge about the product to the
customers.
2. Samples/ free coupon scheme
This method id used as an introduction tool.
3. Trade credit scheme
In this the customer is supplied with a bag for current use. The cost of this bag
-
7/29/2019 Kerala Solvent Extractions Limited
41/53
[41]
will collect along with the supply of replacement bag. This put a moral
obligation on the part of the customer to purchase KSE product again. The KSE
did away this practice; because of technical reason the dealers are encouraged
to do so.
4. Door delivery system
In a high competitive market prompt delivery is an attractive one and KSE insist
on dealers to follow this method.
5. Exhibition and Mela scheme
* Festival exhibitions
* Agricultural exhibitions of government* Livestock shows in Wayanad etc.
* Diary exhibition Vetinary college etch
Customer service
The customer servicing refers to the process of understanding the minds and
needs of them and solving their problem gracefully. The product of KSE is
supplied to all parts of Kerala, Karnataka, Andhra Pradesh and Tamil Nadu and
strong in rural marketing .The products are segmented and marketed with
Different strategies in the local areas. The main advantage is that it is cheap to
compare with similar cattle feeds of others like Vijay, Godreg and Kerala feeds.
The areas of services are identified as follows;
Medical backup facilities
It is an essential follow up service. The KSE has employed vetinary doctors to
find out the effect of each type of cattle feed in each geographical area. This
will have a goodwill effect on customers of the feeds. If any area isdisorganized soon remedial measures can be taken the earliest.
Counselling
The KSE has definite counselling plan for all customers.
Redressal cell
Majority of the customer are farmers of economically weaker sections of the
society. KSE ltd is concentrating on this point and providing instant redressal to
-
7/29/2019 Kerala Solvent Extractions Limited
42/53
[42]
such class of claim.
Publications
To impart latest information and to adopt customers with changing trends. KSE
publish its own bulletins and leafs lets to the customer in selected areas.
Recognition and training
Every year KSE select few members of customers and give them suitable award
like the best cattle power, largest milk producing cow etc. to boost the
spirit among the customers. KSE also imparts farm training to selected group of
workers.
MARKETING PROMOTINAL SYSTEM
In modern marketing, customer is the king. Marketing is connecting the link
between producers and customers. KSE ltd has effective and energetic sales
department. Sales management forms to only one aspect of the whole of
marketing.
Function of marketing department:
1. Product planning
Product have the company must have the quality of satisfying the need of the
customer. KSE ltd has a vetinary doctor as nutritionist. It is in consultation with
nutritionist, marketing department decides on new project.
2. Packing policy
Packing has important effecting sales. A cattle feed is not a customer product.
Package design decision involves mainly weight of packing, convenient to thecustomer. Recently small package of 10 kg is introduced for convenient sales.
3. Pricing
Price is fixed on the basis of availability of raw material, transportation cost,
and storage and distribution charges. KSE has adopted a competitive pricing
strategy
4. Market survey
-
7/29/2019 Kerala Solvent Extractions Limited
43/53
[43]
KSE ltd has % supervisory agencies throughout Kerala and they give feeds back
about the market and customer attitudes toward the product. Based on the
survey, KSE makes suitable modifications on product and marketing channels.
5. Some promoters are considered before giving fresh dealership
They are,
* Social status
* Financial backgrounds
* Trust worthiness
6. Sales procedure
The purpose of marketing is to promote sales. KSE ltd makes an order incidentbook. This includes date, name of the product; amount etc. so the dealer can
mention the product and its quality then sales department will sends delivery
order to go down stock given to dealer after security clearance.
-
7/29/2019 Kerala Solvent Extractions Limited
44/53
[44]
QUALITY CONTROL DEPARTMENT
DIAGRAM6 : STRUCTURE OFQUALITY CONTROL DEPARTMENT
QualityControl
Department
Nutritionist
AssistantManager
Chemist
JuniorChemist
LabAttendent
-
7/29/2019 Kerala Solvent Extractions Limited
45/53
[45]
OBJECTIVE OF QUALITY CONTROL DEPARTMENT
To take necessary steps to maintain the quality of products To take different measures to improve the standards of products To achieve a better quality level and better conformity of quality
KSE has developed a tradition of trust. An on-going improvement in
manufacturing process plays a vital role in ensuring high standards. KSE
has adopted mechanized production and computerized quality control in
its operation.
QUALITY CONTROL ACTIVITIES
Quality control activities are mainly at three stages:
Incoming raw material Production process In finished goods
Raw material must maintain its specification. It must
contain required quality of protein, fat, moisture etc. Any increase or
decrease in these items wills adversely affects the quality. Before using
for production process the raw material are checked in companys labfor good quality input.
The formula for the cattle feed production is formulated by nutritionist.
This formula includes all specification needed for the product. Only the
purest and best raw materials find its way in to the factory.
Well-equipped laboratories under the expertise of scientists, continuous
supervision by experienced nutrition specialists and the assimilation of
international developments. In the field of animal nutrition, KSE has an
edge in product development and quality.
PRODUCT SPECIFICATION
1. KS Cattle feed Protein : 14 - 16% Oil content : 2%
2. KS Special Cattle feed Protein :14 16% Crude fibre : 11 -12%
-
7/29/2019 Kerala Solvent Extractions Limited
46/53
[46]
3. KS Super Cattle feed Protein : 16% Oil : 2% Fibre : 12%
4. KS Deluxe Protein : 16 -17% Fat : 2% Fibre :3%
5. KS Deluxe Plus Protein : 17 18% Fat : 3% Fibre : 12%
6.
KS Supreme Protein : 22% Fat : 2% Fibre : 12% Sand & Silica : 2%
STORES DEPARTMENT
-
7/29/2019 Kerala Solvent Extractions Limited
47/53
[47]
DIAGRAM 6 : STRUCTURE OF STORES DEPARTMENT
Stores
Department
StoresOfficer
StoresSupervisor
Stores Clerk
Worker
GoDownExecutive
GoDownSupervisor
GoDownAssistant
Worker
-
7/29/2019 Kerala Solvent Extractions Limited
48/53
[48]
In the company stores department is divided into two
1. General Stores
2. Go down
FUNCTIONS OF STORES DEPARTMENT
1. Identify the material that has reached the recorder level.
2. Storage and proper keeping of the materials.
3. Issuing material to the customer department.
4. Stores all data regarding the storage and supply of raw materials in the
computer. Computerization of this department helped the company to save a
lot of time and eliminate various records like storage holder.
STORAGE CONSUMPTION DEPARTMENT
It is prepared by the store keeper and sends the account
department for recording it in the profit and loss account. The consumption of
material by each department is shown in this department.
GENERAL STORE
The officer in charge of general store is storekeeper.The store
keeper is responsible for identifying the materials that has reached the reorder
level and is responsible for its storing.The main item purchased and stored
here are spare part of machinery , packing material , and belt , chain and other
miscellaneous articles
GODOWN
The Compny store raw material for one month or one and half month. The
company has got more than 7 godwns. In the case of sampling of good all thevisible impurities are identified. The impurities like fatty acid can be found only
after lab analysis. In the godown they follow FIFO. As the department
computerized annual stock can be calculated easily
-
7/29/2019 Kerala Solvent Extractions Limited
49/53
[49]
SWOT ANALYSIS
STRENGTH
Experience in the field over 40 years. Leadership in the Cattle feed Market. Reputation and brand image of the company for the quality of its
products.
Good network of dealership in South India. Fully computerized plant as compared to the technology used by
other manufacturers, KSE has got upper hand.
Good employer-employee relationship; good employee welfareprograms and benefits like gratuity, allowance, bonus etc.
WEAKNESS
In adequate promotional activities for dairy products, company isgiving more priority to the promotion of its cattle feed products.
Employee overhead is high as it is a public limited firm. Limitations of Management; role of trade unions.
OPPORTUNITIES
Financial strength of the company leading to better purchasingpower.
Exemption of value added tax on sale of cattle feed, de-oiled cakesand coconut oil enabling the company to effectively combat with the
competitors.
Expanding its distribution areas. Adequate infrastructure can be made available for the production of
other animal feeds.
-
7/29/2019 Kerala Solvent Extractions Limited
50/53
[50]
THREATS
Competition from other manufacturer of organized and unorganizedsector, e.g. Kerala feeds.
Probable entry of multinational entities. Upward revision of fuel price increasing the price of ingredients
manifold.
Granting of subsidy on animal feed by the Government selectivelyavoiding private manufacturers.
Indirect control of Government over price of milk. Stagnant numbers in cattle population affecting market growth in
future, as cattle rearing are still not very economical.
Import of cheaper oils leading to fall in demand for solvent extractedcoconut oil.
-
7/29/2019 Kerala Solvent Extractions Limited
51/53
[51]
CONCLUSION
KSE is the brand leader in the cattle feed, where ever its products are available.
The ever increasing popularity of KSE is range of high quality products. They
understand the need and preference of the customer. KSE has always been at
work to provide the right product, at right price. KSE enjoys the brand loyalty
and sizeable share of market, especially in the home state, Kerala.
This study always also gives an idea about the performance of the
management functions which leads to success. The management practices
gave the real picture of the functions like planning, organizing, staffing,
controlling, coordinating, etc. The social responsibility of the management,
business ethics, strategy, decision, organization development techniques etc.
gave the image of the professional management of KSE ltd.
FINDINGS
The total turnover during the year under review improved by 19.52%compared to previous year.
Despite of adverse condition in cattle industry , company maintains agood performance in cattle feed division without drop in sales.
The price of several ingredients has doubled during the last 2 years. The oil cake processing has marginally improved compared to
previous year.
There is adequate internal control system so as to ensure safety to itsassets against loss.
The company is now catering the Tamil Nadu market also. In Diary division the milk operation are carried out at a lower level so
as to meet requirements of milk and cream for production of Ice-
cream with true quality.
KSE ltd to give more importance to its marketing activities so thatthey can tap the potential and future market.
The concerned authority should spend the time to hear thesuggestions of their employees and consider their innovative ideas
seriously for the development of their company.
Although the company has provided safety masks for the workersthey are not using it.
-
7/29/2019 Kerala Solvent Extractions Limited
52/53
[52]
Earlier they have more customers in the Thrissur District but nowbecause of the competition from Kerala Feeds they have more
customers in Sothern Districts
SUGGESTIONS
The company should pay more attention to the markets outsideKerala.
Increase the price of the cattle feed judiciously without loosing themarket share.
Setting up of more ice cream production units for improving volumeof production thereby profitability of diary division
Customer retention measures should be enhanced. Create awareness among the workers about the importance of safety
measures
Company can earn more profits by expanding its diary market. Use TV Advertisements to promote the products.
-
7/29/2019 Kerala Solvent Extractions Limited
53/53
BIBILOGRAPHY
Annual reports ofKSE ltd
www.kselimted.com KSE Newsletters and booklets
Marketing review- magazine
top related