CHAPTER – I

INDRODUCTION

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INTRODUCTION

Purpose of the project is to study the organization at wide. The study of various

departments of the organization etc is to be studied. Internship training report is conducted for

the partial fulfillment of the requirement of the degree of Master of Business Administration

(MBA) as per the University rule.

Internship training is conducted to get experience about the practical application

of the management theory. It helps students to combine theory with practical. The scope of the

study covers how the organization is working, study of the department in the organization and

analyzes the management problem in the organization. Based on the data collected attempt to

make a swot analysis and recommend a solution for recovering the management problem in

that organization

After the Second World War, food industry took quantum leap. This brought in the

need for good and quality food products. Products need quality and retain all the nutritious

factors. This can be more favorable to the customers at large. Food industry across the globe is

turning more and more rice, wheat and oil products.

PARISONS Group of companies introduces mainly wheat products to the market.

Company also produces some other sub products such as edible oil, vanaspathi, etc.

This project contains various departments of the company, the company’s vision,

mission, its objectives, findings and suggestions.

OBJECTIVES OF THE STUDY:

1. To analyze the working of various departments in the organization.

2. To analyze current status of the industry.

3. To analyze current status and future prospects of the organization.

4. To analyze how is the relationship between management and workers.

5. To study particular management problem in the organization

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PROFILE OF THE INDUSTRY

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PROFILE OF THE INDUSTRY

The food industry has given us a food supply so plentiful, so varied, so inexpensive,

and so devoid of dependence on geography or season that all but the very poorest of

Americans can obtain enough energy and nutrients to meet biological needs. Indeed, the U.S.

food supply is so abundant that it contains enough to feed everyone in the country nearly

twice over—even after exports is considered. The overly abundant food supply, combined

with a society so affluent that most people can afford to buy more food than they need, sets

the stage for competition. The food industry must compete fiercely for every dollar spent on

food, and food companies expend extraordinary resources to develop and market products

that will sell, regardless of their effect on nutritional status or waistlines. To satisfy

stockholders, food companies must convince people to eat more of their products or to eat

their products instead of those of competitors. They do so through advertising and public

relations, of course, but also by working tirelessly to convince government officials, nutrition

professionals, and the media that their products promote health—or at least do no harm.

Much of this work is a virtually invisible part of contemporary culture that attracts only

occasional notice.

SOCIETAL ATTACHMENT:

The ways in which food companies use political processes—entirely conventional and

nearly always legal—to obtain government and professional support for the sale of their

products. Its twofold purpose is to illuminate the extent to which the food industry determines

what people eat and to generate much wider discussion of the food industry's marketing

methods and use of the political system.

WORLD WIDE RESEARCH:

Past 25 years, the nutrition had found that food industry practices are discussed only

rarely. The reasons for this omission are not difficult to understand. Most of us believe that

we choose foods for reasons of personal taste, convenience, and cost; we deny that we can be

manipulated by advertising or other marketing practices. Nutrition scientists and practitioners

typically believe that food companies are genuinely interested in improving health. They

think it makes sense to work with the industry to help people improve their diets, and most

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are outraged by suggestions that food industry sponsorship of research or programs might

influence what they do or say. Most food company officials maintain that any food product

can be included in a balanced, varied, and moderate diet; they say that their companies are

helping to promote good health when they fund the activities of nutrition professionals. Most

officials of federal agriculture and health agencies understand that their units are headed by

political appointees whose concerns reflect those of the political party in power and whose

actions must be acceptable to Congress.

In this political system, the actions of food companies are normal, legal, and

thoroughly analogous to the workings of any other major industry—tobacco, for example—in

influencing health experts, federal agencies, and Congress. Promoting food raises more

complicated issues than promoting tobacco, however, in that food is required for life and

causes problems only when consumed inappropriately. As this book will demonstrate, the

primary mission of food companies, like that of tobacco companies, is to sell products. Food

companies are not health or social service agencies, and nutrition becomes a factor in

corporate thinking only when it can help sell food. The ethical choices involved in such

thinking are considered all too rarely.

Early in the twentieth century, when the principal causes of death and disability

among Americans were infectious diseases related in part to inadequate intake of calories and

nutrients, the goals of health officials, nutritionists, and the food industry were identical—to

encourage people to eat more of all kinds of food. We obtained access to foods of greater

variety, our diets improved, and nutrient deficiencies gradually declined. The principal

nutritional problems among Americans shifted to those of over nutrition—eating too much

food or too much of certain kinds of food. Overeating causes its own set of health problems;

it deranges metabolism, makes people overweight, and increases the likelihood of "chronic"

diseases—coronary heart disease, certain cancers, diabetes, hypertension, stroke, and others

—that now are leading causes of illness and death in any overfed population.

Now a day’s food Industry has a wide range scope. Many countries use rice and rice

products. In India rice production Industries are using various technical methods for large

scale production. In India most of the states are using rice. In Kerala main food is rice and

rice products. There are several firms situated in the Industrial production of rice and rice

products. In Kerala, most of the customers can prefer rice with retain all the nutritious factors.

These Industries make large scale production to the customers at wide.

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CHAPTER – II

ORGANAISATIONAL STUDY

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PROFILE OF ORGANAISATION

ORIGINE AND GROWTH:

The PARISONS Group has distinguished itself as one of the leading business groups

in Kerala notching up a total turnover exceeding 600 cores. The Group started out as a

Trading outlet in Big Bazaar, the business hub of North Malabar in 1982, and has reached

this distinction during the past decade and a half. The first manufacturing unit was

established in 1992, and now the group has a total processing capacity of 600 MT for Wheat

flour milling and 380MT for edible oil refining per day.

Success of its initial ventures resulted in rapid expansion of wheat flour business with

acquisition of several Roller Flour Mills and key Brand names. The activities of the

promoters diversified in to Rubber, Tea Plantation, Infrastructure leasing etc and caused to be

known as distinguished leading business group of Kerala. The ability of the group to acquire

closed milling units and make them profitable ventures with in short span of time resulted in

the group becoming the market leader in Wheat Flour Business.

The PARISONS Group with their corporate base in Calicut Kerala are the largest

manufacturers and marketers of two basic food commodities, Wheat Flour and Edible Oils in

South India. Started in a humble way, PARISONS has reached a stage that it has grown into a

formidable Omni-presence at every phase of the Agro Business cycle including Production,

Processing and Distribution. Having made their presence felt in the food commodities

market, PARISONS diversified their activities into Rubber, Tea Plantations and

Infrastructure Leasing.

LEADERSHIP:

The PARISONS Group is the brainchild of its Managing Director,

Mr. N. K. Mohammed Ali.

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A very resourceful leader and futuristic thinker. His dynamic leadership combined

with the illustrious efforts of his brothers,

Mr. N. K. Ashraf

Mr. N. K. Khalid

Mr. N. K. Harris has been the motive force behind what PARISONS is today, - “a

major presence in the agribusiness industry."

The saga of success of the PARISONS Group started in 1992 when the flagship

company The Parisons Roller Flour Mills Pvt. Ltd. was set up in West Hill Calicut. The

company owns a 120 TPD Roller Flour Mill is now the market leader in its segment with the

ultra premium PARISONS Liberty brand of wheat products. The success of this venture led

the group to acquire several flour mills and key brand names. PARISONS with its rich

experience and expertise in the field of food- processing and trading, has well succeeded in

planning, implementing and running of new projects, as well as, taking over sick and ailing

units and making them viable in the shortest possible time. This has led to the emergence of

PARISONS as the largest producers and marketers of wheat products and edible oils. Out of

the 31 active flourmills in Kerala 4 major flourmills with a total capacity of 600MT is

presently owned by the group. Our presence in the market can be gauged by the fact that 4

out of 6 flourmills in Kozhikode District.

Plans are on the anvil to revive the operations of a defunct flour mill of 100 TPD

capacity located at Kuttipuram which was already acquired from the KSIDC in 2002. The

PARISONS Group is already a brand presence in South India, especially Kerala with an

established market, distribution network and high brand equity for its products coming from

its existing four units namely:

Parisons Roller Flour Mills (P) Ltd.

Yenkey Roller Flour Mills (P) Ltd.

Khemka Flour Mills (P) Ltd.

Kodandram Roller Flour Mills (P) Ltd.

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LOCATION:

The PARISONS GROUP, having its corporate office at 6/1183,Kunhipari building,

Cherootty Road, Kozhikode, Kerala, India is the largest manufacturer of two basic food

commodities –Wheat Flour and Edible oil. The name is derived from the name of late

KUNHIPARI the illustrious scion from a well known business family in North Kerala. The

PARISONS GROUP was founded by his industrious four sons. It was started with a humble

beginning as a trading outlet in the business hub of Malabar in the year 1982. The dynamic

business expansion started in 1992with setting up of flagship company named The Parisons

Roller Flour Mills Pvt Ltd.

ADDRERSS OF THE COMPANY:

PARISONS GROUP

6/1183, Kunhipari building,

Cherootty Road,

Kozhikode,

Kerala,

India,

Pin: 673 032.

E-mail: parisons@eth.net

Website: www.parisons.com

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PARISONS GROUP

PARISONS ROLLER FLOUR MILLS PVT

LTD.

PARISONS MILLING COMPANY PVT LTD.

YENKEY ROLLER FLOUR MILLS PVT

LTD

PARISONS EXPORTS INC.

KHEMKA FLOUR MILLS PVT LTD.

SOFT GUIDE TECHNOLOGIES PVT

LTD.

KONDANDARAM ROLLER FLOUR MILLSPVT LTD.

BOYCE RUBBER ESTATES PVT LTD.

PARISONS AGROTECH PVT LTD.

PARISONS INFRASTRUCTURE

PVT LTD.

PARISONS FOODS PVT LTD.

PARISONS ESTATES AND INDUSTRIES PVT

LTD.

OBJECTIVES

Stimulating demand for appropriate processed foods.

Achieving maximum value addition and by-product utilization.

Creating increased job opportunities particularly in rural areas.

Creating surpluses for exports.

Better utilization and value addition of agricultural produce for enhancement of

income of farmers.

Minimizing wastage at all stages in the food processing chain by the development of

infrastructure for storage, transportation and processing of agro-food produce.

Induction of modem technology into the food processing industries from both

domestic and external sources.

Maximum utilization of agricultural residues and by-products of the primary

agricultural produce as also of the processed food industry.

To encourage R&D in food processing for product and process development and

improved packaging.

To provide policy support, promotional initiatives and physical facilities to promote

value added exports.

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MISSION

The continued pursuit of excellence in relation to the quality of its products, reliability

of supply and building of close links with its vast clientele.

To strive hard to uphold its reputation as leader in F.M.C.G.

To abide by rigorous ethical and legal standards in our strategies and in our day-to-

day business activities.

To diversify into other segments.

To generate a climate of loyalty and mutual respect among our employees.

To sustain long standing relationship crucial for onward march with focus on

accelerated growth and development.

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VISION

To be a premium Company with a clear focus in future.

To develop market opportunities by creating new and innovative products.

To become the market leader in Agribusiness and provide the world markets with

healthy food.

To employ path breaking technology in all our ventures.

Aspire for, and achieve, leadership in existing areas of operation. Simultaneously,

raise resources and capabilities to move into new areas

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ORGANAISATION STRUCTURE

AT PARISON GROUP

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SWOT ANALISYS

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S.W.O.T. Analysis

STRENGTH

Availability of good quality raw materials.

Latest technology is used for production.

Company is eco friendly and socially committed.

Co-ordinal relationship between management and employees.

Finished quality products.

Powerful marketing strategies.

Efficient distribution network

Good relationship with trade unions

Good customer relationship

Good communication.

100% capacity utilization.

WEAKNESS

Low quantity of power and lack of power generation facility.

Inadequate investment planning

Lack of good advertisement facilities.

Lesser diversification of business

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OPPORTUNITY

To use latest technologies to the production process.

Steady growth of the products.

Good demand for customer product.

To develop new and improved products.

Globalization and liberalization polices open new opportunities to the firm.

THREAT

The company can face some marketing problems by competitive firms

Season will affect the raw materials.

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PRODUCT PROFILE

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PRODUCION

Production is the process, developed to create a collection of input elements. i.e.

Energy, capital, material, manpower such as labors used to produce output such as the

finished goods in proper quantity and quality.

WHEAT PRODUCTS:

Wheat and wheat products forms part of the staple diet of almost all Indians. In the

field of wheat products, PARISONS group is the largest manufacturer in South India.

PARISONS LIBERTY brand is the only one brand, which is available through out Kerala

and it is the market leader in this segment.

Major wheat products are:

Maida

Atta

Sooji

Bran.

Maida or Wheat Flour:

It is mainly used in Bakery and Pasta industry. In Bakery industry maida is used for

making Breads, Cakes, Pastry, Naan etc., and while in Pasta industry it is used to make

Spaghetti, Macaroni, Cannelloni, Vermicelli, Noodles etc. It is also used for making Parathas

and Halwa.

Atta or whole wheat:

Atta is used throughout the country to make Chapathis, Roti and Puries. It is one of

the largest selling flour in the country.

Wheat Semolina or Sooji:

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Wheat Semolina or Sooji is mainly used in Pasta industry to make Macaroni,

Raccioir, Farfalle etc. It is also for Sweet making, Kesri rawa making and Upma making.

Bran:

Wheat Bran is mainly used for poultry feed and cattle feed industries as raw material.

EDIBLE OIL:

Edible Oil being the most necessary ingredient next only to wheat flour for making

food products consumed by people, it was thought fit that diversification into trading and

processing of edible oil and its trading as a natural choice. PARISONS is the first and one

and only manufactures of refined edible oil in Kerala.

Palmolein is the common people’s cooking medium, it is mainly used for cooking

purposes at homes, bakeries and hotels. The group has also entered the retail market in a big

way PARISONS Liberty Gold Palmolein brand is a premium brand in the market. Palmolein

is available in 15 kg tin, 15 kg jar packing, 1 litre and half litre & 200 ml saches.

PARISONS also manufactures Palmoil in the brand name, Kerala Palmoil which is

also used for cooking purposes.

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VANASPATHI AND SPECIALITY FATS:

Here again PARISONS is the one and only manufacturers of Vanaspathi in

Kerala.For manufacturing vanaspathi it has set up a state of the art most modern Hydrogen

plant with Belgian technology for the fist time in India. Vanaspathi is an alternate cooking

medium for tasty preparations. It is mainly used in homes , hotels and other catering

industries for cooking purpose. For the preparation of Biriyani & Ghee Rice vanaspathi is an

integral part and Parisons Liberty Vanaspthi is the most preferred choice for that extra

flavour it gives to cooking these delicious preparations. Parisons Agrotech manufactures

Vanaspathi.

We have two brands of vanaspathi. As far as the sales is concerned Parisons Liberty

has already become on of the leading brands in north Kerala.It has now opened a new Depo

at Ernakulam to enter the southern markets more effectively, where its presents is limited

now. The group has got sales points at Kakkanchery, Kuttippuram & Angamali, shortly

Trivandrum will also become a sales point.

BAKERY SHORTENING:

PARISONS group is the first and one and only manufacturer in Kerala of Specialty

fats or Bakery Shortening. It is used in the Catering ,Confectionery & Bakery industry for the

preparation of bakery items. Within a short period of introduction with quality and

PARISONS groups goodwill support it has captured a major share of North Kerala market.

With the introduction of new products it hopes to capture a good part of south Kerala market

also and become a market leader in this segment.

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There are 4 brands of specialty fats manufactured by PARISONS:

Prisons Chakra

Dream

Premier No.1

Golden Puff

Parisons Chakra, Dream & Premier No.1 bakery shortenings are used for preparation

of ordinary bakery items like Breads, Cakes, Cookies, Biscuits etc. and Golden Puff is

especially used in the preparation quality Puffs. Margarine, a new product, specially for

Pastries & Cakes will be introduced shortly in the market by PARISONS.

Specialty fats are available in 15 kg Bib, 15 kg Tin & 15 kg Jar.

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FUNCTIONAL AREAS

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FUNCTIONAL AREAS

COMMODITY TRADING

What began in 1982 as a small business of general merchants and commission agents

for food grains and wheat flour products in the name of N K Mohammed Ali and Brothers

has grown into one of the big trade houses in the market and it can be traced now in the most

respected names of traders in big bazaar of Kozhikode.

Edible refine oils and wheat flour products like Aata, Sooji, Miada ,Rava being very

fast moving food commodities in trading the volume of trade handled by this firm has

increased multifold within a short span of time. This partnership firm can control the groups’

well knit marketing network of dealers and distributors spread all over KERALA. Yet

another partnership concern in the name and stale of PARISONS EXPORTS Inc. does the

international sourcing of basic raw materials in key food of food products of edible oils and

grains..

FLOUR MILLING

Having established a study food hold in trading activity the group embarked on

strategic business expansion mission and setup its first flour mill of PARISONS ROLLER

FLOUR MILLS Pvt Ltd at West Hill, Kozhikode in 1992. Consistent progress is being

attained in this activity and the group presently owns armada of flour mills spread across

different districts in the state of Kerala from Trivandrum Flour Mill P Ltd in Trivandrum Dt.,

Kodandram Roller Flour Mills P Ltd. Angamaly in Ernakulam Dt., Khemka Flour Mills P

Ltd., at Chungam West Hill, in Kozhikode Dt. Etc. All the milling plants are running with

machinery of state of the art technology.

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VEGETABLE OIL REFINING

After establishing after market leaders in wheat flour products it was vegetable oil

refining activity waiting for the group to get on with next. In its verification plan the group

launched vegetable oil refining plant at west hill Kozhikode in the name of PARISONS

ARISTECH Pvt Ltd in the year 1996. Ever increasing demand for the refined oil products of

the company like refined bleached and deodorized palm oil, Vanaspathi etc. in the brand

name LIBERTY GOLD prompted the group to increase its refining capacity as a result of

which a different unit in the name of PRISONS FOODS Pvt Ltd was established in KINFRA

food park at Kakkanchery in 2001.

INFRASTRUCTURE LEASING

In the continues foray of the group in different types of business the idea of setting up

of Storage Tanks Farm in cochin Port trust area come to mind by sheer necessity. The

inconvenience of associate companies in the vegetable oil refining activities to depend on

other parties for storage purpose could be alleviated. The group garners substantial amount of

rental income by leasing out additional storage capacity in the infrastructure facility to other

interested parties.

ECO TOURISM

Promotion of ecotourism is an activity going by side of Agriculture in Beautiful

Estate and Plantations in the Hilly areas of KERALA state like Mananthavady in Wayanadu

District .The group own vast area of rubber plantation and Tea Estate. The different locations

of the areas are at KK road Mundakkayam in Kottayam Dt, Chirakkara Dt, Talappuzha,

Tatamala, etc. in Wayanadu Dt. Which are the places making our State “Gods Own Country”.

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RUBBER PLANTATION

The Group entered in to plantation segment by acquiring 1665acres of Rubber Estate

and processing facilities located in beautiful part of Kerala state at KK Road, in Idukki

district. The estate comprises of two divisions namely BOYCE Divisions and

PERUVANDANAM Division. Of this area 1400 acres of land is presently cultivated. About

200 acres of non cultivable Land is having rich deposit of SILICA About 30 acres of land

consists of the roads buildings and other infrastructure facilities. The estate has drying yard

smoke house for the total area and crepe factory to produce crepe rubber. Spurred by the

increased level of prices of raw rubber the Company is poised to show impressive results.

EXPORTS

The Export Division of the Group was set up with its corporate headquarters at

Calicut. It is engaged in trading of edible oils after packaging. The firm purchases the oils

from other Group Units who are major importers. A Cochin office was also set up to speed up

the import operations of the group.

Our exports division caters to the needs and requirements of all our overseas buyers. Over the

years, we have experienced continuous growth both in terms of physical and volume of

production allowing us to be one of the most competitive exporters in India.

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QUALITY CONTROL, SAFETY PROCEDURES

AND ENVIONMENTAL POLICY

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FUTURE EXPANSION PROGRAM

Government of India has realized the necessity of participation of private sector in

developing infrastructure facilities like (1) Development of ports (2) Leasing out Port assets

(3) Construction/installation and operation of cargo births, container terminals (4)

Warehousing (5) Container freight stations (6) Storage facilities etc. The promoters of the

group have in their mind a passionate desire to improve the existing infrastructure facilities at

BEYPORE PORT of Kerala

PARISONS GROUP has just entered into the buswiness of coconut oil with its own

liberty branded pure quality oil which is most favored cooking medium of Keralaits.

Intensive programs are in the pipeline to boost up this business not only in and around the

home state but also to Gulf countries.

Brand building finds a place in the list of future activities as an intensive marketing

activity for TEA producer in the own estates of the group. Plans to establish chain of Super

Markets of different products of own brand bye ways of franchisee business are also

contemplated seriously.

COMPANY STATUS

PARISONS GROUP gets ISO- 9001:2000 Certification and HACCP certificate (Kerala Govt

Quality Certification).

QUALITY CONTROL

We at Parisons believe quality is of paramount importance in customer satisfaction.

Our commitment to quality starts right from the procurement of raw materials and continues

till the final products are packed for delivery. Our ultimate objective is to bring continuous

development by incorporating the latest technology that help us in achieving better quality.

Our incomparable state-of-the-art infrastructure consists of well-equipped and high-

tech plants to cater to the increased demand of our products. Our range of products is tested

and quality checked by our in house labs provided with latest state of the art equipment. We

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have in-house facilities for bulk packing to small packing and all the operations are

performed in dust free and hygienic conditions.

We believe in competing with ourselves and this encourages us to increase our

manufacturing potentials and to augment them from time to time. We are a customer driven

company and aim to achieve "total client satisfaction" through timely delivery, right quality

and competitive prices of the products.

SAFETY PROCEDURE

PARISONS Group has separate fire and safety officers. They are well trained

crew. Safety procedures of PARISONS Group match the industry standards. It follows strict

safety procedures laid down by its manuals. Safety awareness is considered as a prime area

for employee training.

ENVIRONMENTAL POLICY

PARISONS Groups of companies aware of their commitment to the society. A

healthy environment is inevitable for sustained development. This company’s procedures are

environment friendly. This company uses modern equipments for monitoring ambient air

quality.

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MAJOR MANUFACTURING UNIT

PARISONS FOODS Pvt. Ltd.

The escalating demand for the Group’s edible oil brands prompted PARISONS Group

to increase its refining capacities. Moreover the Group had to devote the entire capacity of the

first unit for refining of edible oils though the unit was intended for the manufacture of

Vanaspati also. A second unit for edible oil refining was set up under a new Company

PARISONS FOODS Pvt Ltd. This 150 TPD Plant was commissioned in the KINFRA Food

Park, Kakkanchery, Malappuram District and the company started production by the end of

the year 2001. The capacity of this unit has been expanded from 150TPD to 300 TPD by May

2003.

Later in 2004, an additional plant was commissioned in the factory to fractionate RBD

Palmolein from RBD palm oil, which helped the concern to avoid importing of Crude

Palmolein, which had become unviable due to customs duty structure. This plant has an

installed capacity of 300 TPD.

PARISONS Liberty, Coconut Tree, Chakra and K Brand, household names today, are

the products of these manufacturing units. As three out of 4 units are concentrated in Calicut

setting up of a unit in Kuttippuram has the locational advantage, the major consumer of

wheat products in Kerala being the Malappuram District. Raw materials for the mills are

bought in bulk by rakes from centers in UP, Haryana and MP.

By the revival of the unit the PARISONS Group will be having 5 milling units in

Kerala with a capacity of 700 tones adding luster and glory to their fame as the largest

manufacturers of wheat products and edible oils in South India.

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MILLING CAPACITY – WHEAT BASED PRODUCTS:

Sl. No

LOCATION OF MILLING FACILITY MILLING CAPACITY PER DAY[IN MT]

1 PARISONS ROLLER MILLS PRIVATE LIMITED,CALICUT

120 TPD

2 KHEMKA FLOUR MILLS PRIVATE LIMITED,CALICUT

100 TPD

3 YENKEY ROLLER FLOUR MILLS,CALICUT 100 TPD

4 KODANDARAM ROLLER FLOUR MILLS PRIVATE LIMITED,ANGAMALY

100 TPD

5 PARISONS MILLING COMPANY LIMITED,KUTTIPURAM

100 TPD

6 TRIVANDRUM FLOUR PRIVATE LIMITED,KOZHAKOOTTAM

100 TPD

TOTAL 620 TPD

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PRODUCTION CAPACITY-EDIBLE OIL BASED PRODUCTS

SL.NO LOCATION OF ACTIVITY MNAUFACTURING ACTIVITY

MANUFACTURING CAPACITY

1 PARISONS AGROTECH PRIVATE LIMITED

PALM OIL REFINING

80 TPD

2 PARISONS AGROTECH PRIVATE LIMITED

VANASPATHI MANUFACTURING

25TPD

3 PARISONS FOOD PRIVATE LIMITED

PALM OIL REFINIG

300 TPD

4 PARISONS FOOD PRIVATE LIMITED

FRACTIONING 300 TPD

TOTAL 705 TPD

Unswerving commitment to quality has helped the company to consolidate a large and

loyal clientele and the company now moves ahead with the global market in its perspective.

Backed by a strong force of dedicated employees, PARISONS is all geared to forge ahead in

the new millennium.

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CHAPTER-III

FUNCHTIONAL DEPARTMENTS

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HUMAN RESOURSE

DEPARTMENT

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H. R. DEPARTMENT

The Human Resource department deals with the planning, organizing, directing and

controlling of the human element in an organization and in their training, development and

maintenance.

With the increase in the size of business, manpower has become the most vital factor

in business. Personnel management is a specialized branch of management that deals with

people. Human beings are the principal asset of a business or industry. People are the main

subject matter of personnel management and it is its business to educate employees, line and

staff and supervisors to place a high value of the dignity and work of the individual human

being.

Human Resource Management is that part of total management of an organization which

specifically deals with human resources in respect of

(a) Their procurement.

(b) Their development in terms of skill, knowledge and attitude.

(c) Their motivation towards the attainment of organizational objectives by creating and

maintaining an organizational climate conclusive to such development.

The group has well experienced and quality workers in each unit. In the production

process all units are similar so they need the same amount of man power. All employees are

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H. R. DEPARTMENT

H. R. MANAGER

SECRATARYASSISTANT MANAGER

well qualified and show their ability I their respective fields. The employees are recruited via

contractors, personal contract or by advertisement in news papers. even though they have a

definite training schedule, there is no need to give special training as the elements of training

prescribed will be incorporated by the employee on his own has he becomes familiar with his

work.

Each division forwards their manpower requirements to HR division. A requisition

can be routed by a line manager through the divisional head to GM, HR. The HR divisions

studies and analyses manpower requirements and puts its comments on each position. After

compilation of all the requirements with HR comments these are forwarded to the manpower

committee. The manpower committee which comprises of members of Top management, HR

and General Manager meets every alternate month to discuss and assess the requirement put

forwards to all divisions. Based on that committee’s recommendations the HR division

processes these positions. The requirement and selection process for Kerala positions are

completed within one month, where as for outside Kerala it takes at least two month.

The H.R dep. takes care their employees by providing provident fund, ERS, gratuity

and looking after medical needs of their employees and families at present the administration

purchase and human resource department is headed by one manager except in administration

where he is assisted by two others there are total of almost 36 people working under him.

RECRUITMENT:

Recruitment function is concerned with discovering the sources of man power

required and tapping these sources. Workers are recruited on the basis of sanctioned strength

in each department employees are selected according to their skill and ability.

ORIENTATION:

All employees of PARISONS group will undergo an orientation program prior to the

start of regular work. This envisages making the organization, its rules, guiding principles

and culture transparent and known to all employees in the concern. During orientation every

employee would receive a detailed job description an explanation about the nature and

essentials of the job in perspective. Clarification if any can be made during the orientation

program.

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TRAINING:

The organization understands the necessity of developing skills relevant for every job.

Hence all employees would undergo minimum of sixty hours of training. That covers areas

such as salesmanship. Managerial skills, communication skills and all round personality

development .If the department as certain that additional training program is inevitable, an

employee may be asked to undertake further training.

PERFORMANCE MANAGEMENT:

There would be a development plan for each employee based on the employee

performance appraisal. This would be conducted from time to time.

STRATEGIC H R MANAGEMENT:

It may be understood as the process of formulating, implementing and

evaluating business strategies to achieve organizational objectives analysis as the

environment, formulation of strategies, implementation of strategies evaluation and control

are the phase in the strategic management process. In the company Human Resource

management has taken a good part.

HR PLANNING:

It is the process of an organizations future demand for and supply of, the right

type of people in the right number. The Human Resource Department can initiate the

recruitment and selection. Human Resource Planning is a subsystem in the total

organizational planning. Human Resource planning variously called man power planning,

personal planning or employment planning. Human Resource planning is significant as it

helps to determine future personal needs.

DISPUTES:

It is a smoothly going concern. In future any disputes are found, the HRD is efficient

to recover the disputes. In this concern Trade Union are not to be active.

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MARKETING & SALES

DEPARTMENT

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MARKETING AND SALES DEPARTMENT

Marketing refers to all the activities involved in the creation of time and place

utilities. Being South India’s Largest wheat product producers, PARISONS group producers

a vide variety of brands of Maida, Atta and Oil along with bread shortening.

MARKETING AND SALES:

Forecasting,

New product concept,

Advertising and promotion,

Pricing,

Graphic design,

THEIR LEADING BRANDS IN WHEAT PRODUCTS ARE:

Liberty

Chakra

Coconut tree

Premier No.1

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MARKETING AND SALES

DEPARTMENT

ASSISTANT MARKETING MANAGER

MARKETING MANAGER

ASSISTANT MARKETING MANAGER

SALES MANAGER

AREA SALES MANAGERS

Golden Bell

In refined vegetable oil prisons’ have branded their products under the name of PARISONS

Liberty (palmolein). Liberty is their premium brand .The remaining brands are all in sale in

the respective places where they are produced

At Present to aid their marketing and sales, they have their own trucks for their

transport of their goods produced ensuring fast and speedy dispatch, they ensure the quality

and quantity of their goods produced so as to upkeep their premium. They also have

competitive pricing for their products. they have a selected ad budget.

Their products are given maximum ensuring through FM Radio. This is because, their

products are mainly used by bakers and grocers who use them in bulk who would not be able

to view PARISONS ads shown in the TV. But FM radio is available everywhere. For the

households, they do advertise in the television as well

Apart from this their major expanse in marketing also goes in for professional and

brand building activities such as:

ADVERTISEMENT:

The word advertising originates from the Latin word ‘advertise’ which means to

learn. Advertising is a multi dimensional activity. Advertiser entrant the task of executing

their advertisement message through approval created advertisement campaign to the

advertisement agencies make use of many professional and free lancers

to create advertising. Advertising can often be instrumented in “opening the extend of

advertises line product explaining the position of the company in the industry and its policies

towards”.

The company has been advertising its product through various channels in a significant way.

Advertising is a big business and rank among the top industries of the world. The growth of

advertising industry in any country is in direct relation to the level of business activity and

health of its economy.

They have retail counters at big bazaar. They also have direct representatives for market

study. They also outsource professionals for conducting surveys for specific purposes.

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Marketing department is headed by marketing manager, who is assisted by two assistant

managers.

BRANDING:

Brand name is the part of a brand that can be spoken including letters words and numbers.

Brand mark is a part of the brand which appears in the form of a symbol or design. Branding

means giving a name to the product by which it will become familiar to the public.

PACKAGING & LABELLING:

Packaging is one of the elements of marketing mix. The significance of

packing has increased these days because of severe competition in the market and rise in the

standard of living of the people. The products are packed by air tight and attractive wrapper.

Labeling is an integral part of packaging. It gives verbal information about the

product and the seller.

PRICING:

Pricing could hold some objectives like profit maximization, product status,

survive to the competition etc. To stabilize the product price to the market at large. Pricing

should be affordable to the customers.

PRODUCT POSITIONING:

Position stands with the selection of a segment in witch to complete. If a product is up to the

consumers expectations, it will enjoy a strong position in the market.

CONSUMER BEHAVIOUR:

Market consist of buyers, hence it is the behavior of buyers. Business enterprise without

having consumer understanding, cannot fulfill its obligation of consumer satisfaction the

marketing department must study the wants, needs, preference, and buying behavior

CHANNELS OF DISTRIBUTION:

The product has been developed, produced, and price is determined. The next step is

distribution- to bring it to the market and delivered to the customer.

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TRADEMARK:

Trademark is the legal term when a brand name or a brand mark is registered

and legalized, it becomes a trademark. The trademark of PARISONS Group of Companies is

under PARISONS.

SALES:

The term "Sales" is used to refer to the channels through which a product is sold in the

market place. Often, a distinction is made between wholesaling and retailing channels.

Wholesaling refers to those functions of gathering products, breaking lots into smaller units

and distributing to retailers. Retailing refers to the location where the end customer can

directly purchase the product.

The sales department looks into various activities in connection with both domestic and

export sales, delivery after sales etc. this section is under the direct control and supervision of

the sales in charge.

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Manufacturer Wholesaler Retailer Consumer

FINANCE & ACCOUNTS

DEPARTMENT

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FINANCE AND ACCOUNT DEPARTMENT

Finance is an important aspect of business, one of the factors of production. Today

economy revolves around money. Finance is concerned not only with effective and efficient

utilization of funds. It is vital for the existence of any firm. It is also considered as the life

blood of an organization. Financial management is very effective in an organization for the

smooth working. For this a special officer is appointed as the finance manager. He is

concerned with procurement of funds and effective utilization of collected funds. The

important functions of the finance manager is the collection of the money from customers,

payment to the creditors, daily banking of collection and keeping of all records, filling of

returns payment to advertiser, forecasting of future finance and their availability and so many

activities related with the finance.

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DEPUTY GENARAL MANAGER

ADMINISTRATIVE AND FINANCE DEPARTMENT

FINANCE AND A/C’s

DEPARTMENT

MANAGER

ASSISTANTS AND CLERICAL

STAFF

MANAGER

The most important function of the accounts department is the preparation of the

financial statements. Two basic financial statements are prepared for the purpose of external

reporting.

1. Balance Sheet

2. Profit and Loss account.

These statements are recorded in the company’s annual report. For internal

management purposes, i.e., planning and controlling, much more information that contained

in the public financial statements is needed. The objective of financial statements is to assist

in decision-making.

FINANCE:

General accounting,

Accounts receivable,

Accounts payable,

Credit,

Cost accounting,

Budgeting.

The PARISONS flour mills was commenced with initial invest of Rs.13 lakh with

long term loan from Kerala State Industrial development Corporation(KSIDC).Rs.24 lakh

were raised by issuing shares and rest as unsecured loans.

The group does banking business with most commonly The Federal Bank where they

have a c/c account with an L.C limit. Apart from them ,they also have business relation with

Union Bank, State Bank Of India(SBI), UTI(AXIS) Bank, State Bank Of Travancore(SBT)

and they also have KSIDC for two projects.

PAYMENT OF WAGES

The cash department deals with the payment of wages of the workers.

PURCHASE OF OFFICE STATIONARY

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An indent for material is sent to the cash department for the purchase of office

stationary. The materials required by the departments are purchased by the cash

department and are their send to the particular departments. The indent for material after

the purchase is there after documented.

CONVENTIONS

The financial statements are prepared under the historical cost convention in

accordance with accounting standard, that was relevant to the Companies Act of

1956.Accounts are maintained on accrual basis, except in following cases which are

maintained as cash basis.

Insurance claim

Investment on income tax refund

Dividend from shares

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PURCHASE

DEPARTMENT

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PURCHASE DEPARTMENT

Purchase of goods is a never ending process as long as a factory is in operation. The

purchase department coordinates with the other departments in the firm and does the

purchase of any commodity procured by them the following process is followed by the

purchase manager while making a purchase:

Preparation of Indent.

Receipt of offers and quotations.

Evaluating the offer technically.

Commercial tabulation of offer.

Getting technical confirmation from indenters.

Technical and commercial negotiation.

Placing the order.

Order confirmation from suppliers.

Dispatch of material by suppliers.

Receipt of material by stores.

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PURCHASE DEPARTMENT

MANAGER MANAGER

ASSISTANCE AND CLERICAL STAFF

Issue of goods receipt note.

Confirmation by factory or intender.

PURCHASE PROCESS:

Whenever there is a requirement for raw materials, the purchase department is

informed by the production department through an indent for raw material. Purchase is made

from approved suppliers only. A purchase order is issued to the supplier detailing the product

specification, date of delivery, price and verification requirements, acceptance criteria,

statutory and regulatory requirements, trace ability requirements etc. The purchase orders are

reviewed by purchase department for adequacy and correctness as the requirements before

communication to the suppliers.

PROCEDURE FOR RAW MATERIAL RECEIVING:

Raw material received by the company by supplier’s name, item, description,

vehicle number, and load number, quantity as per supplier declaration. The incoming raw

materials are inspected by the security in charge of load will not be accepted and the

supplier’s are duly informed. The material should inspected by the quality control officer’s of

the time of the

Acceptance and ensure the right item should be received from the supplier.

The verification should be recorded in the relevant register. The verification is satisfactory

the load should be kept the Warehouse. The inventory, ware housekeeper should be entered

the amount of raw materials received in the respective stores ledger.

RECORD MAINTAINED IN THE PURCHASE DEPARTMENT:

Purchase requisition

Purchase Order

Supplier assessment sheet and rates

RECORDS REQUIRED FOR TRANSPORTATION:

Sale bill or invoice

Delivery note.

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LEGAL

DEPARTMENT

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LEGAL DEPARTMENT

The legal department has a legal adviser, who assists the firm on their legal issues the

legal adviser place the role of a company representative who indirectly pulls the strings in

low on legal issues. They meet up with other members of the legal system and advocate the

group on their decision making regarding the legal issues concerned with their operations.

THEY DEAL WITH ISSUES REGARDING:

Tax maters

Customs issues

Labor issues

Acquisition documentation

Environmental issues

Revenue from buildings owned

Depts. To the company

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PRODUCTION & WAREHOUSING

DEPARTMENT

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PRODUCTION AND WAREHOUSING DEPARTMENT

Production function of a business is concerned with the creation of a product or a

service. It is the process which converts the raw materials into finished products, required to

satisfy customer needs and desires.

Production function operates primarily to satisfy customer demands relating to

quality, quantity, price and most importantly the timing of delivery of the product as

scheduled in the orders.

It must permits production activities to operate in an economical and efficient manner

because cost of production is a vital factor in facing the market competition and is ensuring

normal profit or return on investment.

This department is individually controlled by each plant separately .this is because

each factory ahs got its own production requirements with its own production process and

capacity. Also the plants are located throughout Kerala making centralized productions very

difficult

PARISONS has an effective day out of machinery. The machines work around the

clock 24 hours a day the plant at Kozhikode was set up in 1992.in 2000 its capacity has

increase from 80 tons to 120 tons per day, making it one of the biggest plants in kerala the

plant is build in a four story building. It is in such a way that expansion of capacity can be

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PRODUCTION DEPARTMENT

PRODUCTION MANAGER

done easily it is placed in an area of three acres in west hill, Chunkam touch in the national

highway making transportation easier

CHAPTER-IV

SUMMARY

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FINDINGS

Company is using outdated machinery for the rice production.

Lack of proper advertisement.

Good managerial efficiency in very face of the company.

Good relation between employer and employee.

Quality of row material is not sufficient to compare with other competing

company.

Improper planning leads to wastage of material.

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SUGGESTIONS

Appoint experienced and efficient employees to the organization.

Proper advertisement should be adopted.

Prevent unnecessary wastage of material.

Implement new machinery in the factory.

Expansion of warehousing.

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CONCLUSION

All the employees of the organization are contributing their best. PARISONS

successfully maintains cordial relationship to every employee. At present, the growth of the

PARISONS is rapid as its expansion is a continuous process.

In the earlier chapters we saw how the business activity is going on in

PARISONS Group of Companies. Earlier chapter deals with the industry profile and

company profile. Then we go through different departments in PARISONS Group of

Companies and saw how each department is important in the organization functioning.

Disclose the strength and weakness of the company in next pages and we go to the findings

and suggestions.

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ANNEXURE

.

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BIBLIOGRAPHY

PARISONS Group annul report 2007

www.parisons.com

Monthly news letters of the company

Brochure of the company

Marketing management (PHILIP KOTLER)

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