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PROJECT REPORT ON MAHESH EDIBLE OIL INDUSTRIES LTD. SUBMITTED BY: ASTHA PRAKASH ANITA SATSANGI CHANCHAL PRABHAKAR

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Page 1: Mahesh Edible Oil

PROJECT REPORT ON

MAHESH EDIBLE OIL

INDUSTRIES LTD.

SUBMITTED BY:

ASTHA PRAKASH

ANITA SATSANGI

CHANCHAL PRABHAKAR

NUTAN SINGH

KUSUM SINGH

Page 2: Mahesh Edible Oil

SONALI SRIVASTAVA

ACKNOWLEDGEMENTS

We owe a great many thanks to a great many people who helped and supported us during

the making of this project. My deepest thanks to our guide,

Mr. Vijai Sarup Caprihan,

the Guide of the project for guiding and being a constant support. Thanks and

appreciation to the helpful people at Mahesh Edible Oils Ltd, for their support. Especially

Ms. Manu Dubey, Mr Anup Goyal and Miss Poonam Gupta. We would thank our

Institution, our faculty members and our seniors without whom this project would have

been a distant reality. We also extend my heartfelt thanks to our families and well

wishers.

Page 3: Mahesh Edible Oil

LIST OF CONTENTS

S .NO. TITLE PAGE

1. LOCATION 3

2. INTRODUCTION 4

3. HISTORY OF MAHESH IDIBLE OILS 6

4. ORGANIZATION CHART 8

5. PRODUCTION DEPARTMENT 9

6. FINANCE DEPARTMENT 10

7. HUMAN RESOURCE DEPARTMENT 11

8. MARKETING DEPARTMENT 13

9. ANNUAL BUDGET 15

10. LIST OF SALES DEPOT 20

11. OPERATIONS AT DEPOT LEVEL 23

12. MANAGEMENT INFORMATION SYSTEM

24

13. SWOT ANALYSIS 26

14. CONCLUSION 28

Page 4: Mahesh Edible Oil

INTRODUCTIONFrom a humble beginning in 1991 to becoming one of India's most known mustard oil

brands, the history of Mahesh Edible Oil Industries is that of grit and determination.

Founded by Mr. Ram Baboo, Mr. Shiv Kumar Rathore and Mr. Brij Mohan Rathore in

the historic city of Agra. It was first called Mahesh Oil Industries. The addition of two

new partners Mr. Dinesh Kumar Rathore and Mr. Mahesh Kumar Rathore gave this

ambition project a new boost. And of course, a new name MIS. Mahesh Edible Oil

Industries Ltd.

Every since its beginning the company has been producing pure kachhi ghani mustard

oiL and quality mustard cakes for millions of cattle. In fact the founders realized that in

spite of a glut of mustard oil brands and cakes in the market, Indians still yearned for a

brand that they could completely trust. So was formed Mahesh Edible Oil Industries.

To day the company's flagship brand name SALONI is a name synonymous with trust

and purity.

With its manufacturing unit strategically located at Agra. To the surprise of many, it is

the largest mustard oil manufacturing unit in the country. It has a good mix of the modern

and the traditional methods of manufacturing. It has the highest number of traditional yet-

highly mechanized coalhouse working in a completely automatic plant.

In fact the company is known not just for its size but also for its unmatched

infrastructure. State of the art laboratory, the latest equipment and a continuous Up

gradation of its facilities have always been the hallmark of Mahesh Edible Oil Industries

Ltd.

To add to this, a team of trained, qualified and knowledgeable professionals who oversee

the rigorous processes at the laboratory. No wonder their customers are always assured of

Page 5: Mahesh Edible Oil

quality matching / surpassing with the international standards.

# There are thousands peoples working with them.

# The company has been in operation from last 7years and has attained satisfactory

growth level with each passing year, there has been upwards moving trend in the growth

and profits of the company.

# The visionary drivers of the organization

# The turnover of the company is 250 crores.Due to unprecedented quality and customer

retention.

# The Company has 38 depots across India. There is maximum sale of the comp is

filched from Kolkata and Cuttack.

SALONI-AS PURE AS IT GETS

It is the only most known brand. It is also India's purest kachhi ghani mustard oil. And

that can be proven by its pungent smell. Purity does not mean this. These are absolutely

different USPs of our products and this feature should be used as a special highlight

Page 6: Mahesh Edible Oil

LOCATION

CORPORATE OFFICE

MAHESH EDIBLE OIL INDUSTRIES LTD.

F-l, Pee Tower, Sanjay Place, Agra-282002

FACTORY

MAHESH EDIBLE OIL INDUSTRIES LTD.

Agra Road, Shamsabad (Agra)

Page 7: Mahesh Edible Oil

HISTORY OF MAHESH EDIBLE OIL

INDUSTRIES

1990 : Company came into existence as a partnership firm. It had three partners

name.

1) Mr. Ram Babu Rathore

2). Mr. Shiv Kumar Rathore

3). Mr. Brij Mohan Rathore

1991 : Two more directors joined the company.

1). Mr. Dinesh Rathore

2). Mr. Mahesh Rathore

1999 : New market segments larger investment was needed in order to meet the

objectives and goals of the company.

2000 : The company was converted to a public limited company.

2001 : Company increased its capacity by 50% per year.

2003 : Again company got involved in the expansion and modernization of plant.

2005 : Group campaign was conducted for the promotion of the company

2006 : Inaugration of new unit in Shamshabad.

2008 : Launching of new product ‘ Stay Fit ‘ (Refined oil). Started new plant in Kota.

Every year, company growth percentage is approximately 30-32 % in terms of sales

growth.

Page 8: Mahesh Edible Oil

ORGANISATION CHART

CHAIRMAN ( RETIRED)

Shri Ram Babu Rathore

FINANCE :

DIRECTOR FINANCE

Mr. Brij Mohan Rathore

COMPANY CA

Doogar & Associate

M.D.

Mr. Shiv Kumar Rathore

FINANCE PRODUCTION MARKETING

Page 9: Mahesh Edible Oil

COMPANY SECRETORY

Ms. Varsha Agarwal

FINANCE MANAGER

(Vacant)

ACCOUNT MANAGER

(Vacant)

FACTORY MANAGER

Mr. Bharat Singh

Sr. EXC. ACCOUNTS

Mr. Rajat Sharma

CASHIER

Mr. Shailendra Sharma

BANKING

Mr. Rahul Dev Sharma

LEGAL (SALES TAX)

Mr. Suresh Chand Sharma

PRODUCTION :

DIRECTOR PRODUCTION

Mr. Mahesh Rathore

CHIEF CHEMIST

Mr. Bharat Singh

Page 10: Mahesh Edible Oil

CHEMIST

Mr. SP. Singh

DISPATCH EXECUTIVE

Mr. Saurabh Kulshreshta

MARKETING :

MARKETING DIRECTOR

Mr. Dinesh Rathore

MARKETING CONSULTANT

Dr. Vijai Caprihan

MKTG MANAGER

Ms. Dipali Upadhayay

OPERATIONAL MANAGER

Ms.Srishti Shukla

SALES ANALYST

(Vacant)

MRKTG. VICE PRESIDENT

Mr. CBS Rawat

ADMINIS. & OPERATIONS

Mrs. Anshu Tiwari

Page 11: Mahesh Edible Oil

MIS ANALYST

Ms. Rajni Bimal

CREDIT CONTROL MNGR.

Ms. Poonam Gupta

HR MANAGER - Mr. Adarsh Gautam

HR EXECUTIVE - Ms. Tanvi Trivedi

IT MANAGER - Mr. Vivek Singh

LOGISTIC - Mrs.Sushila Singh

BRAND EXECUTIVE - Mr. Sandip Gupta

LIST OF SALES DEPOT

MAHESH EDIBLE OIL INDUSTRIES LTD. has 42 branch offices throughout the

country. The main head office is at Agra. In Agra the company deals through sales depot.

It does not have any consignee in Agra.

The 42 branch offices of the company are as follows:

STATE CITY

UTTAR PRADESH AGRA

ALLAHABAD

AJAMGARH

BALIA

BAREILLY

LUCKNOW

VARANASI

GORAKHPUR

Page 12: Mahesh Edible Oil

WEST BENGAL KOLKATA

SILIGIRI

MIDNAPUR

MALDA

KAKDEEP

ASANSOL

ORISSA CUTTACK

BHUBANESHWAR

TRIPURA AGARTALA

BELONIA

BIHAR PATNA

MUZZAFARPUR

BHAGALPUR

DARBHANGA

UTTARANCHAL HALDWANI

JWALAPUR

DELHI NCR

HIMACHAL PRADESH PARWANOO

JAMMU & KASHMIR JAMMU

The most prominent market for ‘SALONI’ oils are:

Varanasi

Ranchi

Page 13: Mahesh Edible Oil

Kolkata

Tata

In Agra the current sale is 48kl. This is the average sale of the company. But Saloni

believes to aim high and to achieve high. It still aims to achieve a target of 100kl.

Approximately 45% of Agra is yet an opportunity market for the company.

ANNUAL BUDGET

PROPOSED BUDGETRY CONTROL SYSTEM

1. There will be 2 types of budget as under:-

i. Master Budget

ii. Operational Budget

a. Sales Budget

b. Production Budget

c. Raw Material Budget

d. Packing Material Budget

e. Stores Budget

f. Expenditure Budget

- Direct Cost- Variable & Fixed

Page 14: Mahesh Edible Oil

- Indirect Cost - Variable & Fixed

- Administrative Cost Budget

- Selling & Dist. Cost Budget

- Finance Cost

- Sales Promotion Budget

DETERMINITION OF KEY FACTORS AFFECTING THE BUDGET

The key factors which shall determine the budget are:-

1. Sales – Based on Market Demands

2. Seed – Crop Availability

3. National Economic Condition i.e. Govt. Policy related to Import & Export

DETERMINITION OF ANNUAL SALES FOR SALES BUDGET

Presently the whole economy of the company depends upon sales hence it is the key

factor for the budget.

PROCEDURES FOR DETERMINIG SALES BUDGET

Sales data will be collected from various depots area wise, party wise and sales

components wise

Each depot shall provide sales information category wise as under in quantities:-

1. Retailers

2. Wholesalers

3. Distributors

4. Depot Consignee

Page 15: Mahesh Edible Oil

SALES THROUGH RETAILERS

The VSM shall provide sales target – area wise with monthly & yearly breakup.

These will be checked & confirm by the immediate senior officer. These data will be

cross checked by data available in the computer for previous year. On satisfaction

these will form the budget of retail sales for the year.

SALES THROUGH DISTRIBUTORS

Area Business Executives will provide the details of targeted sales for their areas –

distributor wise. These data provided by ABE shall be confirmed & verified by the

Area Sales Manager or where there is any Regional Business Manager, he shall

confirm the budget.

The following is the chain of sales management:-

VP SALES

Regional Sales Manager (RSM)

Area Sales manager (ASM)

Sales Officer (SO)

Area Business Executive (ABE)

Van Sales Man (VSM)

SALES THROUGH WHOLESELLERS

The In charge of Wholesale business relating to various areas shall provide details of

targeted sales.

SALES THROUGH CONSIGNEE

Page 16: Mahesh Edible Oil

The senior person handling the consignees shall provide the details of targeted sales.

PREPARATION OF FINAL SALES BUDGET

The EDP Incharge (Computer) shall receive all budget details provided by the above

chain. He shall assure that all the budgets are confirmed and verified by the above

mentioned senior officer. He shall then work out packing wise detail of targets from

previous year actual packing wise details. The increase in target shall be apportioned

on pro data basis.

The yearly sales budget will have monthly breakup of targeted sales.

HUMAN RESOURCE FUNCTION

The recruitments are currently being carried out all over India. The company is in the

process of launching Stayfit refined and mustard oil and for that they are building up a

team. The major recruitments are being carried out with the aid of Naukri.com. First, all

the resume are shortlisted, then interviews both telephonic, and face to face, are carried

out. The senior most post is that of the RSM, or the Regional Sales Manager. The RSM

supervises one region. The ASM or the Area Sales Manager is the second most senior

post after RSM. Next is the Sales Officer and under the SO, is the ABE or Area Business

Executive.

Along with the salary, the employees are also given other incentives like Provident Fund,

Insurances, Bonuses, TA which is Travelling Allowance and DA, i.e. Dearness

Allowance. TA is exclusive of the salary and it is provided when the employee has to

travel for more than 30 kilometers. On the other hand, DA is included in the salary.

Page 17: Mahesh Edible Oil

Bonus is a tool to motivate employees to give their best performance. It is based on the

salaries of employees and their performance. Incentives up to Rs. 300 are provided to

employees who work very hard so as to encourage their performance. CCA or City

Compensation Allowances are provided to employees who live in metropolitan cities.

Provident Fund is a contribution of both employee plus company. It is a small unit of the

salaries of the employers or some contribution done by the company. PF is 12% of Basic

Salary.

An ABE’s salary package consists of Gross salary: Rs. 8600 plus DA, Conveyance,

phone bill etc.

A Sales Officer’s salary is Rs. 11600 plus TA, DA.

An ASM’s salary is Rs.16000-19000 and the other benefits depends on the persons

capabilities.

An RSM’s salary ranges between Rs. 20000-30000.

There is also a post of the HR executive. The HR executive solves grievances regarding

salary, expenses, market problems etc.

LEAVE PROCEDURE

Legally, employees get 12 leaves in 365 days, or a year. If the employee has a genuine

reason the salary is not cut.

Leaves:

Casual leave: 6

Sick leave: 6

Earned leave: 5

Total leaves per year: 27.

If a person decides to resign, he is asked questions so as to why he wants to leave the job.

He is given a certain amount of time where he has to wind up all his pending work.

If an employee’s performance level goes down, he is given a warning letter and a one

month trial. If his performance continues to go down, he is asked to leave the job, or is

fired.

If an employee dies or gets seriously injured, his family is given Rs. 1 lakh according to

the Insurance Act. Also, additional funds are also given from the Welfare Fund.

Page 18: Mahesh Edible Oil

PERFORMANCE APPRAISAL

The performance appraisal process is carried out on a quarterly basis. The employee’s are

given increments based on their work performance. The highest increment that can be

given is 20%. Bonus is also given during Diwali time. Bonus is grossly 8.33% of the

yearly salary of a person.

FINANCE FUNCTION

All the work related to money is performed by the software Tally.

After opening a company, these are the following steps to be taken to manage the Finance

Department:

1. CAPITAL- How much capital is required to start and run a business.

2. RAW MATERIAL PRICEMENT- After the capital is planned out; they purchase

the raw material.

3. MANUFACTURING- A lot of expenses have to be dealt with like

Worker’s salary

General expenses

Office Expenses

Maintenance expenses

Then the Cost Sheet is prepared.

Entry in the account book of the company:

Cash A/c Dr.

To Capital A/c

Page 19: Mahesh Edible Oil

Purchase A/c Dr.

To Cash A/c

First the Journal is prepared, followed by Ledger, Trial Balance, Final Accounts

and then the Balance Sheet.

4. Another important task is placing the right person according to the right job.

5. The product passes through different processes.

6. Then the product is marketed.

7. The distributors then distribute the product and add the minimum profit on the

product price.

The input product is Mustard seed.

The primary product extracted from it is Oil, and the by product is Cake.

Selling and Distribution rate

Advertisement

Distribution

Plus minimum profit of commission- Rs.1

So, total price turns out to be Rs. 75 per liter.

BALANCE SHEET

A. Sources of funds

1. Shareholders of funds

2. Share Capital

3. Reserve and Surplus

Sub total _____

Loan funds

Page 20: Mahesh Edible Oil

1. Secured loans

2. Unsecured loans

Sub total ______

B. Application of funds

C. 1. Fixed Assets

Less: Depreciation

Sub total ______

Capital work-in-progress

Net block ______

Investments

Current Assets, Loans

1. Inventors

2. Sundry Creditors

3. Cash and bank balance

4. Loans and advances

Sub total _______

Less: Current liabilities and miscellaneous expenditure

Total ______

Profit and loss as on 31st March

Page 21: Mahesh Edible Oil

MARKETING FUNCTION

The price of the product is packed according to all the processes that take

place right from production till the end. The money spent on packaging is also

included under the actual cost. The Market price does not remain the same all

the time. The price in the market fluctuates according to the demands of the

customers.

Schemes: Some special schemes are provided to the consumers so as to

increase their sales.

5% discounts

Buy product and get another small item free

Buying more quantity decreases the cost

Promotional schemes to attract customers:

Advertisements shown on T.V. and in newspapers

Pamphlets and brochures

Hoardings and posters

By hiring attractive salesmen

Mahesh Edible Oil is available in bottles and pouches.

Saloni Kachi Ghani Pure Mustard Oil is Awl's gift to consumers who loves high

pungency mustard oil. It’s made from finest quality mustard. Saloni Kachi Ghani Pure

Mustard Oil is made from the first press of the mustard in the traditional way by slowly

crushing the best mustard seeds in a temperature controlled environment to retain its

pungency and natural properties. Its high pungency level enhances the taste of the food

cooked in it and helps stimulate your appetite. It also helps in keeping pickles fresh for a

longer duration while retaining their traditional flavor.

Page 22: Mahesh Edible Oil

Saloni Kachi Ghani Mustard Oil is available in:

15 kg Tinz

15 kg Jar

10 kg Jar

5 Ltr Jar

2 Ltr Jar

5 Ltr Mtk

2 Ltr Mtk

5 Ltr Tin

2 Ltr Tin

5 Ltr Pet jar

2 Ltr Pet jar

1 Ltr Bottle

500 ml Bottle

200 ml Bottle

1 Ltr Pouch

500 ml Pouch

200 ml Pouch

100 ml Pouch

Saloni Kachi Ghani Mustard oil is targeted primarily at those customers who want the

goodness of mustard oil but with less pungency

Mustard Oil Cakes

The by-product of mustard seed extractions, known as oil-free cake, is put to diversified

uses such as fertilizer and animal feed. Mustard oil cake in particular, is used primarily

for feeding animals and poultry due to its high protein content.

10-15 liter jars are mainly preferred by Jammu and Kashmir and north india.

Page 23: Mahesh Edible Oil

Product’s market depends from area to area. In U.P., people prefer pouches but in the

north east, the people are mostly non-vegetarian so they buy jars and one liter bottles.

The market share is as follows:

West Bengal – 20% share

Jharkhand – 80%

Banaras – 75%

Agra- 60%

North east - !5%

In places like Agartala and Belonia, people cannot afford big jars and so they buy 200 ml

bottles.

STAYFIT - AS PURE AS IT GETS

MANUFACTURING FACILITIES :

The company believes that to produce the best Soya bean refined oil, one needs the best

seeds. Therefore, the process of manufacturing begins with a meticulous choosing of the

best seeds available in the market.

Will need more info here-- To keep them 100% natural, these seeds are crushed in

extractor (machine) and processed step wise in a well-equipped lab. The result is the most

pungent Soya bean refined oil. To retain the purity of the oil, the company under no

circumstances, allows the use of naked human hand.

The process of packaging is another task where there are no compromises. For it plays a

Page 24: Mahesh Edible Oil

major role in preserving the quality, nutritional and health properties. That's why the

owners have taken it on themselves to manufacture the packaging material, under their

supervision and before their eyes.

MEDIA CORNER

PRINT ADS

TV ADS

NEWS CLIPPINGS

NEWSLETTERS

Page 25: Mahesh Edible Oil

SWOT ANALYSIS

STRENGTHS:

The Major strength of “Stayfit” is its quality. All the customers are 100% satisfied and

this is the only reason why we are working with the distributors from past years and still

they are attached with us.

WEAKNESSES:

We withdraw rates immediately which actually disturb the market. Rate is also major

problem in various areas. The following are the main weaknesses of the company:

Prices are very high in comparison to other competitive brands.

Penetration of the product is not very good. The quality is unquestionable but

the availability of the product is poor.

Sales and promotion is very poor or not well in Agra. We hardly see any

hoarding except for in remote places.

Dealers are not given any attractive incentive therefore they do not take any

personal interest in selling the product.

OPPORTUNITY:

For “Stayfit” the biggest opportunities are the upcoming market that caters to the

households. All opportunities can be grabbed by customer focus. In Agra current sale of

the company is very good. In future the company aims to achieve a target of 100 percent.

THREATS:

Page 26: Mahesh Edible Oil

The company is currently facing threats against various competitors like FORTUNE,

DEEP JYOTI, RUCHI STAR, NATURE FRESH &CHAMBAL etc.

MEASURES TO INCREASE SALES

They should give regular Q.P.S schemes in gaps between two months. (E.g.:-

April to May, gap two months then Aug to Sep.)

For undeveloped market they could give some special discounts, consumer offer

scheme & dealers meeting, gifts, supports.

For E.g.:- In any weak area (undeveloped) market, they can provide

special support like Discounts & schemes.

For undeveloped market retailers salesmen may give some gifts like

T-Shirts, cap, pen & Bags (Stayfit should be written on that).

Advertisement materials need to be supplied properly on time.

Advertisement through wall painting, hoardings & in local news channel.

Page 27: Mahesh Edible Oil

CONCLUSION

Mahesh Edible Oil Industries Limited has been built on the foundations of honesty,

reliability and trust. Their aim is to provide their customers with superior service and

products, which stems from their dedication to quality assurance.

They understand the importance of quality relationships with customers and suppliers.

They believe in long-term win-win associations and are committed to the growth of the

mustard oil producing industry.

They aim to achieve their objectives through excellence in customer satisfaction,

competitive costs, efficient distribution structure and healthy sales & operation planning

process. They are confident that their deep-rooted philosophies will

propel them into the forefront of the mustard oil producing industry in the region.