AVT NATURAL PRODUCTS LIMITED 75

INTRODUCTIONOrganization is a harmonious adjustment of specialized parts for the accomplishment of some common objectives. The objectives are laid down as when an organization is start. Various factor like manpower, money, machinery, capital management etc. are grouped together to form an organization and to achieve the goals of the organization. Organization study is the systematic study on the working of overall organization, it involves study of various departments, manpower, department function and process flow of each department. It aims to familiarize the students with the nature and functioning of organization in the real word. It provides students the opportunity to know, observe, learn, collect and analyze the nature, vision objectives and functioning of an organization. It helps us to study how to apply our theoretical knowledge in an organization.This organizational study is an attempt to know about the organization, named AVT Natural Products Ltd., its departments and their functions. AVT Natural Products Ltd (AVT NPL) is a public limited company located at South Vazhakulam. It operates in the segment of oleoresins/extract color and flavors.AVT Natural Products Ltd (AVT NPL) is a public limited company promoted by Mr. Ajit Thomas as a strategic diversification from the traditional plantation business of AV Thomas Group. AV Thomas group came into existence in 1925, AVT Natural Product Limited, which is based at Cochin, on the largest contracts farming in India. Recently the company is diversified its products into the production of spices, oleoresins, essential oils, natural food color and natural extract for the global food ingredients market. AVT natural products Ltd operates in the segment of oleoresins/extract color and flavors. The company has highly advanced facility in-house to develop superior quality planting materials.

India is one of the largest producer, consumer and exporter of spice in the world. Although spices are exported in majority of forms, the major shares consists of raw and bulk form. India has a dominant position in the worlds spice industry with substantial production and availability in wide range. India produces over 2 million tons of spice annually. In the past the export was in raw for but by the mid eighties more importance is given to the value added forms. Now India offers a large variety of value added, ready to cook consumer pack products like blended spices, spice oil oleoresins, curry mixes and natural food colors.

1.1 SIGNIFICANCE OF THE STUDYOrganization is an inevitable part of business & management. Therefore study on organizationalstructure, management process, functions etc. are very significant. The study is very important for knowing the following. To have an idea about the organization named AVT NPL. To have an ideaabout the products. To have an idea aboutthe organizational structureof the company. To have an idea about the departmental functions of the company. To have an idea about the financial position of the company.

1.2 OBJECTIVES OF THE STUDY

To familiarizes with the organization. To study about the functions of various departments in the organization. To know how the theoretical knowledge and practical knowledge go together in order to achieve organizational goal. To know how decision making is done in various departments. To analyzes the strength, weakness, opportunities and threats of the company.

1.3 METHODOLOGY OF THE STUDY

Data Collection

The data forms the fundamental basis of any study. So collection of data is of great importance. There are several ways of collecting the appropriate data. The sources of data collection is classified in to two, those are, primary data and secondary data

Primary Data: The primary data are those which are collected for the first time directly from the source and thus happen to be original in character. Primary data are collected through direct interview, questionnaire, schedules, interaction and observation. It was collected through observation of the firm.

Secondary Data:

The secondary data are those which have already been collected by someone and which have already been passed through some statistical process. Secondary data are collected from magazines, journals, annual report and internet.

The study employed the method of observation to collect the required data for completion of this report. Discussion and interviews with concerned officials were also held for the purpose

1.4 PERIOD OF STUDY

The study was carried out for a period from May 2nd 2014 to May 31st 2014.

1.5 LIMITATIONS OF THE STUDY

The busy schedule of the department heads restricted collection of detailed information. Confidential data are not exposed at certain time. In deep study of each and every department in the organization is not possible. To understand an organizational and its working, the period of 30days is not at all enough .so time was the most important limiting factor in the study.

1.6 SCOPE OF THE STUDY

The study intended to attain a firsthand experience of the overall running of an organization. It helps to understand the working conditions of the organization; its financial and market position. A detailed analysis of each of the activities performed by the departments is beyond the scope of the study. It provides a chance to see practical constraints faced by the managers while putting theory in to practice.

INDUSTRY PROFILE

The story of Indian spices dates back to 7000 years into the past. India is known as the home of spices because there is no other country in the world which produces as much kind of spices in India. The climate of the country is also suitable for almost all spices. The history and culture of Indian spice is probably as old as human civilization itself.

According to International organization for standardization (ISO) the term spice and condiments are applies to natural plant for vegetable products or mixture thereof in whole as ground form, as are used for importing flavor aroma and for seasoning of goods. Spices constitute important group agriculture commodities, which are virtually indispensible in the country art. For India spices are important commercial crop of the point of view of both domestic and consumption and export. Besides, huge quantities of spices are also being consumed within the country for flavoring foods and also used in medicine, pharmaceutical, perfumery, cosmetics and several other industries. There are several spices grown in different parts of the world and around 50 species are grown in India. Major spices of export are pepper, cumin, cardamom, ginger, turmeric and chilies. Among the spices exported pepper has the leading position in terms of both quality and value realized. The Aleppey Green Cardamom is considered as the best grade available in the world.Today the Indian spices hold the same spell. Within the past one decade then international trade in spice has grown by leaps and bond. An estimated 500000 tones of spices and herbs having value of 1500 million US dollars are new imported globally every year. An impressive 46% of sappy comes from India. In the recent year export of Indian spices has been taken leaps.

The Indian export of spices has crossed the 450 million US dollars mark during 1999-2000 and has reached 468 million US dollar. Indias exports of spice extract have shown spectacular growth attaining over 50% of the global market within a short span. Over the past decade, the Indian spice industry has made quality, the cutting edge of its global game plan. From the traditional commodity exports, Indian spices have evolved into a state of art industry by absorbing technology developing value added products identifying niche markets. The spice board of India (Ministry of commerce, government of India) is apex catalyst of these dramatic transactions. The board has been with the Indian spices industry the board plays a far reaching and influential role as developmental, regulatory and promotional agency for Indian spices.2.1 INTERNATIONAL SCENARIO Spice trading has always major economic importance through the human history. The international trade in various forms of spice has grown tremendously in the last decade. According to an estimate, 85% of the international trade in spice is dried and is used after cleaning but without future processing. Pepper is one of the most valuable spices in the globe trade. Countries including China, India and Indonesia are emerging as the leading spice trader.2.1.1 Role of Spices Spices are well known as appetizers and are considered essential in the culinary art all over the world. They add tang and flavor to the food. Some of them also posses anti oxidants properties, while others used as preservatives in some foods like pickles and chutneys.

Some species also possess strong anti-biotic activities. Many of them possess medical properties and have a profound effect of human health since they affect many functional possess. For instances, spice intensify salivary flow. They clean thee oral cavity from food adhesion and bacteria.

2.1.2 Export Export of spice oil and oleoresin and India has been increasing every year. Spice oil and oleoresin are exported to about 18 developed countries in the world. It may be noted that the share of oil and oleoresin in total earnings from spice export from India is increasing. USA is the major importer of oil and oleoresin from India accounting total exports. UK, Canada, Switzerland, Japan, Singapore, Netherlands, Spain and Israel are some of the importers of spice oil and oleoresin from India.

2.1.3 Import Though Indian manufacture of spice oil and oleoresins are situated in the land of spices certain spices are to be imported because of their high yield, for example the yield of the Indian pepper is lesser than Sri Lanka variety. The same in the case of nut mug and mace, cloves on the other hand are not grown in quantities enough to meet the manufacturers requirements in India. They are hence imported to India due to the demand for clove oil in foreign markets.

2.1.4 Market OutlookIn all developed countries, there is a powerful lobbying against all synthetic food colors and flavors since it may cause health problems. Since the quality of essential oil being subjective, there should be a direct contact between buyer and seller for fixing quality standards. In small markets, producers deal directly with flavor/perfumery house, agent, actual users etc. The recent development in spice oil production is the microencapsulated spice oil and oleoresins, sterilization oil were a problem. Bacterial contamination has emerged as a serious problem since radiation was not allowed. Microencapsulating of the oil remains the same throughout a long period. By encapsulation of oils we can almost up to the mark of British oils in quality we have to go to a long way in improving packaging and overall presentation of the product. In the UK, Indian foods are becoming more and more popular. This means that the demand for spice and spice product may go up in the coming years. Of late there has been new development in the cola industry cardamom colors, which is made by incorporating cardamom oils. The particulars have a linking towards cardamom flavor, which is used abundantly in coffee flavored with cardamom commonly known as Arab coffee. The global demand of spice has increased due to: Increase in demand and consumption of ethic food, Introduction of flavored coffee, tea related drinks in the beverage industry, And a sharp growth in the processed food consumption increase in the demand for natural fragrance for various health therapies.

2.2 NATIONAL SCENARIO

2.2.1 India's Share in the Global Spice Market Spice derivative can he categorized into spice oil oleoresin and essential oils. The demand for spice derivative is also increasing due to the hygiene, Standardization and consistency factors. India contributes nearly 70% to the world spice derivative market. It exports to USA, UK, etc. Indian southern states including Kerala, Karnataka and Tamil Nadu provide concentrated oils and oleoresins focus in perfumery, pharmaceuticals, food processing and chemical industry.

Key Industry trend

There has been a substantial increase in use of fresh herbs and spices owing to an increased demand in the hotel industry. Change of consumer towards lending a healthy lifestyle has increased the use of herbs/natural spice for natural flavoring. Use of spice derivatives like essential oils are being widely used internationally in food and beverages industries for flavoring and programs.

2.2.2 Indian Spice Industry India has traditionally been known for its spice and cutlery herb for production. It is the largest spice producing and consuming country. Its strategic location, climate condition, advanced production process and availability of cheap labors make it advantage for the producers to ensure large scale production of quality spices and herbs. The booming global spice markets possess good opportunity for the Indian spice industry to provide quality spices at competitive prices.

India faces big competition from China, Malaysia and Pakistan in terms of pricing of the product. Manufactures should therefore ensure consistency in supply, product quality, pricing and marketing strategy to increase the share in export. Producers are incorporating latest methods and technologies to ensure higher quality of spice and herbs. India is one of the prime exports of pepper, chilies turmeric, seed spice and spice derivatives to the rest of the world. USA, EU, Japan and Sri Lanka import their Indian spice in large volumes.

Technology Spice oils are usually extracted by steam distillation while oleoresins are obtained through solvent extraction. Indian manufactures either use the technology developed by them or technology developed by Central Food Technology Research Institute (CFTRI) Mysore. The industry started in late 1970s has now possessed adequate technological standards and contribute a major share in India's spice expect earning.

SCFE system is a modem technology of making oils or through carbon dioxide processing. The system provides a modem cost effective technology for value addition in processing for various commodities like spices. SCFE is a two step process, while use carbon dioxide at the solvent above its critical pressure and temperature for extraction of various natural materials. This technology is preferred worldwide for commercial extraction because of offers.Production

There are about 24 companies engaged in producing spice oil and oleoresins. Most of them are located in Kerala. The total production of theses ranges from 2500 to 3000 tons per year. The total annual installed capacity of these firms is about 4000tonnes. Several manufactures are now expanding tins product line to include more spice or production at full capacity and this current capacity utilization varies from art insignificant level of 60-70% of the total installed capacity.Government Policy

The ministry of commerce has given timely support for the study progress of the industry, which culminated in the leadership in supply of oils and oleoresins in the world markets. Self certification of essential oils and oleoresins facilitates free flow of export. For import, Government lays duty from other countries for extraction purpose. The Government also stipulates time limit for re-export.

Applications of spices and derivatives

Food Flavouring Food Preservation Personal Hygiene Products Aromatherapy Feeds Pharmaceuticals Industrial Chemicals Beverages

Major Spices Exported

Chilly Seed spice Turmeric Spice oil and Oleoresin Pepper Cardamom Fennel Ginger Fenugreek Tamarind Nut mug and Mace

2.3 COMPANY PROFILE

2.3.1 History

The seeds of AV Thomas group of companies were planted when Mr. AV Thomas purchased grass land in a place named Pasuparai in Tamil Nadu in 1925 and planned tea saplings. On purchasing their estate Mr. AV Thomas floated various companies under his management. The company was AV Thomas and Company Limited. After this a number of companies were formed under his leadership in different locations in Kerala. This led him to the formation of an empire.

AVT Natural Products Ltd (AVT NPL) is a public limited company promoted by A.V Thomas group as a strategic diversification from the traditional plantation business of A.V Thomas Group. AVT Naturals formed in 1994 belongs to the renowned AVT Group of Companies and in the last 16 years has grown manifolds. It started Marigold cultivation on 200 acres of land that has since gone up to 35000 acres producing 100000 metric tons of flowers with the support of 30000 loyal farmers. From producing feed grade Oleoresins in the initial years. AVT Natural today produces Nutraceutical grade products that meet global quality standards in food safety.The companys contract farming model ensures Quality at Source. Marigold business is an integrated project starting from seed development and going on to Oleoresin. The contract farming model followed by AVT Naturals has been regarded as one of the best in the industry.

As part of companys expansion plan, AVT NPL ventured in to the world of food safe natural flavor and colour production. This has become immensely successful and popular in the global food ingredients industry. The various certifications attained by them about their quality standards and food safety norms.2.3.2 Location Kerala is the land of spice plays a significant role in the global spices market. Spices are important commercial crops from the point of view of both consumption and export market.

AVT Naturals deals with a premium range of exotic spices that comes straight from Kerala, the spice haven of the world. AVT NPL is located in the port city of Cochin, Kerala, India. Cochin is referred to as the queen of the Arabian Sea or the spice capital of the World. Having been strategically located in Cochin, AVT NPL has strategic advantage of proximity to the source of raw material and logistic advantage of import, export facilities owing to the sea, air and rail transport modes being within its reach.2.3.3 AVT Naturals Product Limited (AVT NPL) The AVT NPL started its operation by establishing a Soybeans Extraction plant in Pandurana, Madhya Pradesh, which produces high quality of Soya-oil and oiled cakes. The oil is used as a raw material by the domestic vegetable oil industry while the cake was mainly exported to abroad.

In 1994 AVT Natural Products Limited, setup its second extraction unit at Vazhakulam near Aluva in Kerala. The AVT Group of companies after 85 years of its operation has presence in Indian agri-business sector including plantations, aero processing, plant biotechnology and natural food and food ingredients. AVT NPL is 100% export oriented unit located in Kochi, Kerala the spice capital of the world. AVT NPL is a member of AV Thomas group of companies with interest in plantations, leather goods, tissue culture and medical diagnostics. AVT NPL is one of the largest contract framing companies in India, with proven capabilities in backward integration. There are two companies under the spice project, AVT NPL and AVT McCormick in 1994.

AVT NPL is ISO 9002 certified and products are Kosher certified. AVT NPL holds a dominant share of the global marigold flowers, cultivated through 30000 farmers in five different states in India. Because of the direct operation by the companies own agricultural staffs, AVT NPL has been able to meet the required quality of marigold food grade oleoresin.

BUSINESS PROFILE

The company is in business of solvent extraction' comprising of marigold oleoresins, food/spice oleoresins and value added tea while marigold and tea operations are based on long, term supply agreements through strategic alliances spices oleoresins have a well diversified product portfolio.

Board of Directors

Chairman:Mr. Ajith ThomasManaging Director:Mr. M S A KumarDirectors :Mr. Habib HussainMr. P. Shankar I.A.S (Retd)Mr. Shyam. B. GhiaMr. M. A Alagappan

Plant Location Mysore Trunk road, Puduvadavally, Sathyamangalam, Harikura village, Honavally Hobi, Tritur Taluk, Tumkur District, Karnataka. Vazhakulam, Marampally P.0, Aluva, Kerala. Nayanapalli Cross, Bisibanepalli (via), Hindpur. AP.

Subsidiary Companies AVT NPL, 117 Philip street, #05-01 Grand building, Singapore. Heilong Jiang AVT Bio- Products Ltd (sub of AVT NPL) Shuang Yashan state farm, Boston, China.Registered Office64, Rukmini Lakshmipathy Salai, Egmore Chennai-600 008,E-mail: shareholder@avtspice.com.

Major Divisions Agro Operations Dehydration Unit Solvent Extraction Plant

Agro Operations:

Agro operations include field extensions and commercial activities. The areas of operation include Sathyamangalam in Tamil Nadu, Hindupur in AP and Thiripur in Karnataka. The field extension activities include developing new farming area. The distribution of item for fanning through farmer service centre which have been set up in the major procurement area with an interest to provide better service to farmers. The commercial functions include the follow up or the next stage of extension function. It involves collection of flowers from framers, and transports to the dehydration unit. Commercial executives, commercial coordinators and commercial assistance carry out the commercial function. Dehydration Unit: The dehydration unit is situated near to the agro operation in Sathyamangalam, Hindupur in addition to this there is a dehydration centre for chilly at Byadgi in Karnataka. The first Phase of production is carried out in these units before the dehydration flavors are brought to the solvent extraction plant. Solvent Extraction Plant:The solvent extraction plant is situated at Vazhakulam. It is one of the largest continuous extraction plants in the world. It also has a batch plant, a pilot plant and a distillation facility. The processing capacity of the plant is 6500kgs per annum. It has a processing area of 2000 square meters. The plant is divided into following areas; Pre-treatment area Solvent extraction area Finished goods section

2.3.4 Mission, Vision, Values & Team

Mission

To be a Global Leader in Marigold Extracts through a fully integrated supply chain with excellence in Plant Science & Agriculture and Logistics Management. To achieve growth and stability in performance by diversifying to value added natural ingredients for synergistic business segments through development of product research and technology base. To bring in highest level of efficiency, traceability, food safety and quality in the supply chain through Contract Farming. To establish brand equity for natural ingredients through development of consumer marketing skills. To comply flawlessly with ever changing international statutory regulations for our business segments. To consistently add value in our business to deliver superior returns to all stakeholders-customers, employees, shareholders, suppliers, and society

Vision:

To be a global leader, enriching lives through natures on ingredients as food, nutrition, and medicine for mankind. Provide total customer satisfaction through continuous improvement in products, process and services. Develop and motivate employees through ongoing HRD programs.

Values

Constantly strive for value in whatever we do. Belief in ethical business and transparency. Encourage individual excellence and foster environment for team work. No short cuts & never sacrifice long term for short term. Know the business environment, product and customers well update knowledge. Respect the neighborhood and individuality of each customer, supplier, and employee.

Team

AVT Natural has 160 permanent dedicated employees in its direct rolls. 450 foot soldiers supporting contract farming advising farmers on Good Agricultural Practices (GAP). Our dedication to total customer satisfaction and adherence to highest quality standards have established our name to be reckoned within the food ingredients business.

2.3.5 AVT Group of Companies at a Glance

A V Thomas group of companies consists of diversified businesses in Tea, Rubber, and Consumer products such as spices, food ingredients, leather and Healthcare products.

AVT grown from strength to strength in:

Manufacturing Capabilities

Technological Strengths

Export Marketing Capabilities

Domestic Retailing Strengths

Quality In International Business

Experience In Managing Joint Ventures

Table 2.3.1 AVT Group of CompaniesNo.UnitYearActivity

1The high land produce company limited1925Tea and cardamom

2The midland rubber produce company limited1934Tea,cardamom and rubber exports

3AVT and company limited1935Trading export and manufacturing

4The kalpatta estate limited1936Tea and cardamom

5The rajagiri rubber produce1937Rubber,coffee export

6The nelliampathy tea produce company limited1941Tea and coffee export

7The shevaroy estate limited1943Tea,coffee,cardamom and edible oil

8Neelamalai agro industries limited1946Tea trading and export

9AVT investments limited1976Financial and investment company

10AVT leather and allied products Ltd1976Leather goods and export

11Nelliyampathy investments limited1976Finance

12Hawthrone investments limited1980Finance and investments company

13Midland latex products limited1989Latex examination glover

14AVT naturals products limited1994Spice, oleoresins and essential oil

15Rush AVT medicals limited1995Manufacturing caters

AVT Group Business Units

Plantations : 15000 Acres(6070.28 HA) of Tea, Rubber, Coffee, & Spice Plantations in South India (5 companies)with 10 processing factories Consumer Products: Tea, Coffee & Spices. AVT is one of the largest and popular brands in south India. Leather Goods: AVT Leather manufactures a wide range of leather goods for well known brand names in the USA, Europe, The Far East & Australia. Medical Appliances: Manufacture & Marketing of Rusch Foley Catheters and distributes range of Imported Products in India Biotechnology: L.J. International Ltd. Plant Tissue Culture. Product range covers more than 70 products comprising of Flower, Fruit, Forestry, Foliage and Medicinal plants which are exported to several countries in the Americas, Europe, Africa, the Far East and Australia Commodity Exports: Export of Spices, Natural Rubber, and Coir Products & Food items. Logistics: Licensed Custom Agents, Air & Sea Cargo agents, Ware Housing. Trading & Agencies: Building Materials, Rubber chemicals etc. Food & Feed Ingredients AVT Integrated Spice Project

AVT Natural Products Limited AVT McCormick Ingredients Pvt. Limited

2.3.6 AVT Integrated Spice Project

The AVT Integrated Spice Project is situated 22 miles from the port of Cochin and spread over 22.2 acres of land. The Spice units in the complex include AVT McCormick Ingredients Ltd., a 50-50 Joint venture between AVT Group of Companies &McCormick & Co Inc. USA and AVT Natural Products,a public limited company.

SpecificationOleoresin Paprika

Product RangeSpice OleoresinNatural food colours andEssential Oils

Technical detailsManufacturing facility with latesttechnologies and imported machinery

Competitive EdgeAgro processing facility and backwardIntegration

CapacityOne of the largest continuous extraction plant for oleoresins

Export marketAsia, America, Europe, North America and South America

Table 2.3.2 Highlighting factors of AVT

Major Areas of BusinessAVT Group of companies has stopped up into varies areas of business. The divisions in the AVT group are:

Figure 2.3.3 Different areas of business

Company Turnover AVT NPL holds a major share in the Indian spice industry and the present turnover of the company is about 87 Crore rupees.

Code of Ethics 100% compliance with the law. Protection of the property information and confidentiality of information. Prohibition against insider trading. Giving and receiving gifts of certain values. Policies regarding records retention and e-mail access. Policies of improper or questionable payments.

Quality Certificates ISO 22000 Spice house certificate by the Spice Board of India Kosher certificate GMP(Good Manufacturing Practice) American Institute of Banking International, USA (AIB) 1999 "Superior rating" in 2002, 2003,2004,2005,2006. 2001, 2004 consecutive year "lab of the year" for micro technology worldwide.

Awards & Recognitions

AVT Natural Products Ltd won this year Emerging India Awards, constituted for Small and Medium Enterprises in India, for "FMCG Food and Agri Business Category". All SMEs having maximum net worth up to Rs. 500 million were eligible for this award.

AVT Naturals have shared second prize of Kerala State Pollution Control for the excellence in pollution control by large industries in Kerala for 2009/10. Kerala State Productivity Council Award for overall performance of the company. The company has bagged this award for the second time. FACT M.K.K. Nair Memorial Productivity Award 1998-1999.

The awards were given away on a countrywide basis targeting ten different categories: Auto Engineering and Ancillaries. Pharma and Chemicals. FMCG, Food and Agri-Business. Gems and Jewelry. Textiles and Apparel. Information Technology, Communication and Entertainment (ICE), IT enabled services (ITeS). Infrastructure. Travel and Tourism. Retail Trade. Commodity Traders and Others.

Organizational Structure

Organizational structure is the basic frame within managing decisions takes place. Structure is the pattern in which various parts or components of the company are interrelated or interconnected. Organizational structure is the pattern of relationship among people in the organization. Design in organizational structure is considered to be a matter of choice among large number of alternatives. An organizational structure is a hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience the structure of an organization will determine the modes in which it operates and perform. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.

ChairmanOrganizational Structure

M.DPPC Assistant Junior ExecutiveAssistant Manager Hygiene & SanitationStaffSr. Manager AdministrationAssistant G.M food, Safety & PPCManager LogisticsDeputy G.M ProductionAssistant G.MAssistant ManagerTechnicianJunior ExecutiveManager purchasesVice President OperationExecutive Vice President R & DAssistantChemistG.MExecutiveAssistant ManagerDeputy ManagerVice President FinanceA/C AssistantSenior Executive SystemsAssistant G.MManagerVice President Sales & MarketingSenior Executive Assistant ManagerManagerVice President AgroField Co-ordinator Executive Assistant Vice President Q.A/Q.CCChemistManagerJunior ExecutiveSenior ManagerJunior ExecutiveG.MH R MTechnicianJunior ExecutiveSupervisorAssistant Manager

FUNCTIONAL DEPARTMENTS

Different departments in AVT NPL are:

Figure 4: Functional departments in AVT NPL

4.1 PRODUCTION DEPARTMENT

Figure 4.1.1 Structure of Production Department

Production department is headed by the Vice President operation and include 1 executive, 3 supervisors, and 40 technicians. 4.1.2 Production PlantThe production plant is divided into following areas:-

Pre treatment area: -

In pre-treatment area the marigold meal is pelletized. There are different pelletizes for marigold and spices.

Solvent extraction area: - In solvent extraction plant, the pelletized meal has to undergo 3 different processes:

The meal is treated with hexane solvent in the extraction plant and extracts the Xanthophylls pigment content from the meal are evaporated. The mixture passes through the process of evaporation where by solvent get evaporated and Xanthophylls is left as residue. The Xanthophylls are further evaporated in the process called stripping, in which the solvent contents remaining are also removed to give pure Xanthophylls.

Finished goods section: -

This is the final stage where the packaging materials after quality checks are taken and locked with the finished material ready to shift to the final testing. Production is carried out as per the production plan. This operation is divided into 4 types based on quality of raw material and type of production and they are continuous extraction, batch extraction, pilot extraction, pilot extraction and steam distillation. Continuous Extraction:-

The Company has one of the largest continuous extraction plants in the world. This type of extraction plant is used in marigold extraction. The plant has a capacity of 40 tons per day in 3 shifts.

Batch Extraction:-

Presently this .type of production is used for the chilly extraction and has the capacity of 7 tons per day.

Pilot Extraction:-

The process is same as that of batch extraction and this is used for product development purposes.

Steam Distillation:-

The type of process is used for the extraction of volatile products. The collected marigold flowers or spices are silage (oxidized) in the hydration unit and sends to screw press. The pressed flowers or spices are then shredded and dried. After drying they are grinded to obtain the meal (pressed flowers or spices). The meal is brought to the solvent plant. In the pre-treatment area that meal is then palletized. There are separate palletizes for Marigold and spices. In the first stage the Xanthophylls pigment from the meal is extracted. Then the mixture undergoes a process of evaporation by which the xanthophylls are left as residue. Finally the xanthophylls are further evaporated in a process called stripping in which any remaining solvent content is also removed to give pre xanthophylls.

Figure 4.1.2Production Process

4.1.3 Production Planning and control The main function of production planning and control department is making arrangement for raw materials and effective shipment based on the business plan for the year. Business plan from the top management gives the details of product processing, raw materials and packing required, finance acquired etc. Two types of planning are done separately for marigold and spices. For marigold the production manager in consultation with the GM finance makes the plan for the month. Whereas the spice production planning is done as per the sales and order requisition (SOR) from the sales and marketing department. SOR gives the details like the name of the product and its specification, quality required, packing conditions, mode of transport, agreed price etc. AVT NPL adopted proper safety measures for to offer sale food products to the customers. At each steps of production they ensure 100% safety of food products. Food safety Programs Standard operating procedures for all process steps Color coded packing materials and labels for easy identification Traceability from RM to FG and vice versa Unusual occurrence & process upsets procedures Handling of customer complaints and non-conforming products Foreign materials controls policy like glass, wood and metal Food Allergen Policy Personal Hygiene Policies on Uniform, jewelry & visitors Induction & Refresher Training for all employees Employee health check-up & return from illness policy

Facility and Infrastructure for Safety Dedicated warehouse for raw materials, in process material finished goods, packing material to prevent any cross contamination. Designed room to keep cleaning chemicals and pest control chemicals and pest chemicals away from the processing area. Designated place to keep the returned goods and damaged goods. Dedicated area to keep hazardous chemical engineering spares.

Pest Control Bait station for rodent control. Pheromone traps and the fumigation for insect control. Electric fly traps for fly control. Warehouse fumigation at regular intervals. Fogging in crack and services.

Working Conditions in AVT NPL AVT NPL provides good working condition to the employee so they felt more physical comfort and the company maintain an environment friendly atmosphere. It gives freshness in the mind of their employees.

4.2 SALES & MAEKETING DEPARTMENT

Sales and marketing is the integral function of the company. This department handles the distribution of the products in the international market. The distribution is done through direct shipment except in the European market, where the company has few agents. Through the high quality of the product that AVT NPL supplies, the image of the company in the world market is that of an extremely quality conscious and prompt supplier. The sales and marketing department helps in maintaining a good image and broadening the market horizons. All these are achieved by effective promotional activities. This is done through taking part in international food and spice festival. The company has no direct connection with the customers since there are no direct outlets for the company.

Figure 4.2.1 Structure of Sales & Marketing Department

4.2.2 Products of AVT NPL AVT NPL is an ISO 9002 certified company which produces the best quality spice oil extracts and colour pigments from its 100% export oriented unit highly competitive world market of USA, EUROPE and other Asian countries.

Product Profile of the Company

Natural colour

Marigold extracts Oleoresin paprika

Natural flavors

Black pepper oleoresin Celery oleoresin Capsicum oleoresin Nutmeg oleoresin Ginger oleoresin

Antioxidants

Rosemary extracts

Essential oils

Black pepper Celery Ginger Nutmegs

New products

Safflower extract Black carrot Vanilla extract Annatto Fenugreek

Competitors Details

The main competitors of AVT NPL are:

SYNTHYTE ICANCORE AICEY ENJAYES

Promotional Activities

The company is trying to make awareness among the representatives of other international companies about the advantages of using natural food products in international food exhibition, spice festivals. The company is also giving their products advertisement in the food magazines for the promotion of their products.

Distribution The distribution is done through direct shipping except in Europe were the company has few agents.

4.3 HUMAN RESOURCE & ADMINISTRATION DEPARTMENT

Figure 4.3.1 Structure of HR & Administration Department

4.3.2 Objectives of HR Department

To ensure man power recruitment in all departments. To provide adequate training to all employees and to ensure that they are aware of their role in the system. To ensure that productivity of the employees are improved by way of training. To ensure that no man lost days due to industrial urgent. To provide the welfare activities for the workers.

4.3.3 Policies of HR Department

Decisions regarding the working hours leave rules, health care policies, trade policies etc. Providing rest room facilities during intervals. Annual medical checkup for all employees including contract employees working in finished goods area. Employees will be identified by photo identity card. Vehicles, Drivers, Visitors, entering the factory premises will be checked at the entrance by security personal document.

Functions of HR Department

Recruitment and selection Induction Training and Development Performance appraisal Grievance handling Compensation and benefits Welfare activities Man power planning Installing team spirit and work participation in management Aiding project work Moral boosting and involvement

Recruitment:

The purpose to meet the additional manpower requirements in which arise due to increase additional work capacity and situations arise to select the best talent. The recruitment is conducted by the HR department from department source bio-data, placement cells or employee reference and also the data bank. Bio-data are the reviewed and those satisfying the competencies are short listed for the test I interview. In case if they do not satisfy the competency specified in the competency chart, the candidates with the sufficient years of experience are interviewed.Selection:

Apprentices/trainees/technicians/staffs

Short listed candidates for apprentices/trainees/technicians/staffs are called for a written test. Initial interview is conducted by the immediate supervisor and the HR executive. Permanent vacancies candidates are further short listed for the second interview based on the result of the test. Interview with the concerned department headl GM-HR Administration.

Selection procedure for executives:

The short listed candidates are called for the personal interview with the GM-HR administration and the concerned department head. The candidates short listed are taken for the interview with the vice president operations/MD.

The candidates selected are referred to GM-HR and Administration to finalize the terms of employment. The selected candidates are given offer letter has to be acknowledge by the candidate. Before joining the candidates need to undergo medical examination in a hospital specified by company and allowed to join if he/she is medically fit. The appointment letter will be issued to the employee within a month of joining depending on the qualification and the previous experience of the employee, he is placed on probation but if experience is insufficient company will be placed on training also. On joining the company the employees has to fill up the HRIS form.

Induction: The purpose of induction is to induct personnel into the organization and to familiarize with the functions of various departments. The employees are given induction schedule based on which he/she understand the basic functions of relevant departments management trainees are introduced by one day induction. On completion of the induction a report is submitted to the concerned department head and GM-HR and Administration. Induction report keeps as a personal file of the employee.

Training and Development: The purpose is to list activities relating to employees and measuring the effectiveness of the training. The training needs specified in the appraisal complied together and programs are designed to meet requirements. It is jointly done with the help of the concerned department head and the HR department. The information is complied and a training calendar is prepared before the month of June of every year.

General Programs address the specifications of the customer. Statutory requirement, food safety and first aid also incorporated into the training calendar. Trainings are scheduled as per the training calendar. After each training a feedback are collected from the employees. After three months from the date of training, training as done by the department head that interviews the training calendar of the programmer and sends it back to HR department. All trainings attended by the employee is recorded in the training record which is maintained with HR external trainees/agencies identified by general manager to handle specialized areas for training.

Performance appraisal: The purpose to evaluate the performance of each employee during the previous year and to identify the training required for further improvements of the performance appraisal form. At the end of training and probation period the employee's performance is evaluated. Overall performance found to be good he/she is placed in the probation or confirmation and is communicated in writing. If the performance hats unsatisfactory further improvement training is required and probation is extended and is communicated to the employee by a training and probation extension letter.

Promotion:

The promotion is on the basis of the performance of managers/executives and for the workmen on the basis of experience and the promotional policy.

AVT NPL Promotional Policy The policy provides promotion from one grade to another grade. A worker completing 5 years regular service in a particular pay scale will be promoted to the next scale in the same category. All the promotion will be effective from April 1 of the year after the workmen complete 5 years of regular service. The above will not be given to the workers if,

He has not worked for 240 days in a calendar year, in case the promotion will be held for a year.

Any punishment is awarded for domestic enquiry proceedings for misconduct in such case an eligible candidate will not be given promotion or a period of 2 years from the date of order of the punishment.

Grievance handling:

Industrial relation Communication Attendance Bonus

Industrial relations:

The management has recognized the association of employees by the name of AVT NPL employee union. The management and union has entered into a long term settlement on 19th August 2002 to establish fair work standards and conditions to maintain harmonious relationship between workmen and the company, to provide collective bargaining to prevent strikes, lock outs and slowdowns to maintain effective and uninterrupted operations and thus ensuring optimum quality NPL maintaining good HR among employees. And consistently maintains team work inside the factory.

Communication:

Communication provides internal information service perhaps in the form of staff news papers or magazines, hand out, booklets, videos. The internal communication is done through telephone, e-mail, etc. Meetings are conducted and minutes are recorded and kept for future reference. Department meetings, open house with all employees and top management for sharing the status of the business, welfare and related matters are discussed with selected employee group by the HR departments and other departmental heads. In house magazines are introduced as a part of the internal communication.

Attendance:

Attendance of executives is recorded by using punching machines and the attendance register for other employees working in the company.

Bonus:AVT NPL provide attendance bonus. An employee having monthly attendance of minimum 22days is given attendance bonus.Compensation and Benefits:The current compensation package is one of the best in the industry and is adequate to retain best resources. Salary is paid monthly which is inclusive of various allowances applicable to each grade. There are specific salary scales for each grade of employees and are placed in the grades from Al (senior vice president) to T1 (technicians-grade3). Increments are given annually based on the performance appraisal done at the end of every financial year. Management compensation includes: Basic salary + HRA + Children education + Convenience allowance + Company car etc.Welfare activities:

Free canteen & transport facilities Monthly welfare kits & Bonus Birthday celebration of employees Marriage gifts Uniform for employees Restroom & Locker facilities Free medical check up Tours for employees Personal leaves Spice/ tea powder give at subsidized price Recreation club First aid Mask, Louse

Drinking water Spittoons & Washing facility Crushes for children of woman employees Parking facility Sports day Family day

Types of leave: AVT NPL has 3 kinds of leave, and they are:

1. Casual leave: 12 days per year this cannot be enchased and accumulated.2. Sick leave: 9 days per year can be accumulated 3 years cannot be enchased.3. For every 20 days one day will be granted as privilege leave.

Leave Application Procedure

Leave cannot be availed of as matter of right and the management may at its desertion revise, revoke or curtail leave subject to the exigencies of the working of the establishment and if need be recall and employee before the expiry of the sanction leave.

Application for annual/privilege leave must be submitted 7 days before the date of which the leave commences. Annual/ privilege leave must be availed for not less than 3 days at the time and cannot be availed more than 3 spells in a year.

The employees shall not down the order of his leave card before the date of leave and on return from leave shall submit a joining report on writing to his department head.

For sick leave the employee must produce sickness certificate within 24 hours of absence owing to illness and also produce fitness certificate before resuming work. Employees covered under the ESI scheme must produce their certificates from the ESI authority and other employees from the company medical officer. Employees are required to comply with the rules of return from illness policy. Illness reporting has to be submitted for sick leave exceeds 3 days, risk assessment format has to be submitted while applying for leave.

Application for casual leave as far a possible should be submitted 24 hours in advance. Casual leave shall be granted only for emergencies of any unforeseen circumstances and shall not be for more than 3 days at a time. Casual leave cannot be accumulated and will automatically lapse if not available before 31st December.

Unauthorized absence will be dealt as per the service rule of the establishment.

Any change/alteration in the card without authorization shall amount to misconduct.

The employees should submit this to the department immediately for obtaining leave sanction.

Reason for leave should be written in the column provided without fail.

Manpower planning:

In AVT NPL management has done effective manpower planning. Manpower planning is concerned with the determination of a quality personnel required in an organization. Management is very friendly with their subordinates. It will create a healthy atmosphere and giving motivation to the employees.Trade Unions in AVT NPL: CITU Workers participation in management:

Worker participation in management enables both the management and the worker to share and exchange their view points in the process of joint decision making. In AV1 NPL management give opportunities to employees for expressing their ideas, opinion, and suggestion.

Employees Security Scheme ESI Health insurance scheme Family planning scheme Employee welfare fund ShiftsThere are 3 shifts 7.30am to 3.30pm 3.30pm to 11.30pm 11.30pm to 7.30 am

Job Responsibility of HR Personals

GM-HR Administration

Manpower planning and forecasting based on the business plans and employee turnover. Training needs analysis, co-ordination of internal and external training programs. Performance appraisal Grievance redressed by chart investigation and through department leaves Maintaining work plan discipline through employee counseling or by disciplinary action against wrongful employees. Negotiation with representative trade unions. Liaison with Government bodies like labour departments as local bodies Continuity of annual revision, promotion and incentives. Recommendation of need based welfare machineries Executive HR

Assisting GM HR and administration in human resource planning and operation, recruitment and selection. Maintaining data bank industrial new recruitment co-ordination with employees union. Annual revision, promotion, incentives etc. Organizational welfare activities. Salary appraisal by maintaining statement attendance. Maintaining updated HR details, training records, monthly statement, and organizational celebration.

4.4 FINANCE & SYSTEMS DEPARTMENT

Figure 4.4.1 Structure of Finance and Systems Department

Finance department is headed by General Manager Finance and assisted by Deputy General Manager and executive at factory level and comes Vice President responsible for accounting, financing, and costing. Apart from this function, the department has to work hand with HR department in connection with disbursement of salary, allowance and grievances Finance department is one of the important factors, which provides access to all resources for being employed in manufacturing and merchandising activities. Financial management means keeping sufficient balance of money to meet the daily requirements. This department monitors the day to day financial activities and guides the management in the right direction and forecast the profit and growth of the organization. Financial management deals with the pricing of the product or raw materials. The finance department issues the pricing list of the materials instructed by the customer and if the customer is satisfied with the prices shown by the AVT NPL then only the work orders are issued. Functions of Finance Department

Considering the individual department budget and getting the approval of the Chairman. Raising funds Apply funds Declaring Valuation and control expenses Costing Planning Submitting the monthly information system to the management that is the estimated budget v/s actual budget (day to day transaction) Preparing the profit and loss accounts, balance sheet for the stationary and internal purpose.

4.5 RESERCH & DEVELOPMENT DEPARTMENT

Figure 4.5.1 Structure of Research and Development Department

R&D is inherent feature of the company's operations which enables the company to prove talent enveloping natural extracts and formulations. R&D department involves in natural products to meet specialized customers need in full-fledged lab. R&D was given a special thrust and several new and value added products where introduced in the last 2 to 3 years including Ethanol C-95% alpha free cap. Decolorized and pesticide free Paprika Oleoresin, Chromo shrimp, Rosemary Oil etc. New projects are taken in collaboration with multinational like Cola project and Decaff. AVT NPL believes in novelty and offers customer newer and specialized products. Keeping in mind the salient requirements of the customer and specific country laws with regards to Aflotoxins lotion and pesticide residues they endeavor to meet these specifications through in-house developed processes. As a result AVT NPL has developed in-house separation technology that has been used to produce Oleoresin Paprika with absorbance ration of more than Aflotoxin free and pesticide reduced Oleoresin Capsicum. AVT NPLs Centre for Research and Development was established in 2000 and isrecognized by Department of Scientific and Industrial Research, Govt. of India. R&D focuses on both market driven and technology driven products to meet the continuous market changes.

Equipments of R&D Department

R&D centre is well equipped with an array of sophisticated modern analytical instruments like GCs, HPLCs, HPTLC, GC-MS, and Spectrophotometer etc To scale up new processes and products from lab to commercial scale, company has invested in pilot plant facilities for extraction/isolation, crystallization, column chromatography, reverse osmosis, specialized tea processing machinery, spray drying, microencapsulation.etc..Current focus is on carotenoids , natural antioxidants , specialty colours and flavours , value added teas , dietary fibers, phytochemicals and beadlet technology.

1. HPLC (High Performance Liquid Chromatography) with cobra and florescent detector for Aflotoxin and ETQ residue analysis.

1. CIO spectrometer for regular analysis is of active ingredients and GCMS (Gas Chromatograph with Mass Spectrum) of 15000 components.

Organization Contribution to the SocietySocial Responsibilities

AVT Natural, as a part of its social responsibility identifies the needs of the neighbourhood and fulfils them completely. They support 30,000 small and marginal farmers with technology to improve their net farm returns and their livelihood. We respect our neighborhood and all our stakeholders. Eye Clinic: Around 40,000 school children were screened and, those who required vision correction were identified and given the necessary treatment. This was carried out by the doctors from ShankaraNetralaya in association with AVT Natural Products and Rotary Club,Sathyamangalam.Successful cleaning of weeds and waste materials from the Bhavani river banks and strengthening of the embankments to provide better irrigation facility to the farming community was carried out.Infrastructure of the approach roads to our facility was further rectified.Yearly financial assistance offered to the Panchayat for the Polio Eradication Programme.Free weekly medical checkup and assistance provided to the rural community by doctors of AVT Natural Products at Sathyamangalam.AVT has offered numerous facilities in the education sector by providing basic amenities like computers, laboratory equipments etc. for the students of neighboring schools. Cash awards have been endowed on top ranking students in the final year of their school.

4.6 ENGINEERING DEPARTMENT

Figure 4.6.1Structure of Engineering Department

In Engineering department different units in three sections are headed deputy manager engaging services and report to the Vice President. This department is divided into three sections based on the function namely Mechanical, Electrical and Utility.

Mechanical Department Mechanical section under take repairs and maintenance of all machine and also take care of preventive maintenance. Modification of existing machineries are allocating as per the requirements in production department. The production department issues Job Requirements Form (JRF) on the basis of which the engineering department initiates actions. There are 5 technicians and supervisors working in this department.

Procedure of work: Concerned department in consultation with the engineering department give the job description. On the job description is prioritized after completion for is prepared and give to department. The format is called hot job order is prepared for work than can't be undertaken under the factory premises are given to external agencies.

Electrical Department

Electrical department utilizes power from KSEB through 11 KV Substation. Two 350KV AVG/ADO sets are used when KSEB supply is not available. This department is also undertake routine maintenance of electrical circuit equipments like LAN cabling, EPABX cabling etc. in addition to preventive maintenance to avoid break down. They also undertake various energy utilization studies to ensure optimum usage of power. This includes power supply calibration of all machines operating equipments in the cooling tower and chilling unit. In certain situation energy shortage time the KSEB do not provide supply due to peak time requirements. So in these situations diesel generators are used. Diesel is obtained from Indian Oil Corporation on monthly basis. Diesel is stored in underground tank. This department prevents break down and interruption to production.

Utilities Department

Utility department consist of four first class boiler operators in this staff category aid four technicians. This department is mainly responsible for generation of steam under pressure. There are two boilers of tones capacity for each. This steam conveyed through insulated pipeline for production. This department is also responsible for production of the effluent treatment plant, process and distilling of water is treated as per pollution control system. The effluent treatment plant consists of collection tank, safe tank, an aerator tank and clarifier. The waste water is properly treat before let out monthly return pertaining to water consumption and analysis, report of raw materials and treated effluent are sent to the pollution control board. The water treatment plant is set up for the properties of water used for various purposes. Water is obtained from the nearby pond and is pumped to the collection tank. From the collection tank the water passed through the sand filter and the softener, this water is used for all domestic purpose in the plant and office.

4.7 QUALITY CONTROL & ASSURANCE DEPARTMENT

Figure 4.7.1 Structure Quality Control and Assurance Department (QA/QC)

The department is responsible for quality control of production from purchase to finished goods. This facilitates to get a good image in the market. They used international standard tests pungency solvent reside pesticides reduce and colour value. Advance equipment like HPPC, GC and spectrophometers are used for total commitment to quality, safety extensive quality system and processing operations. The most modern analytical lab closely monitors quality tests for Aflotoxin PPB (Parts per Billion) level. HPCC gas chromatograph and spectrometer fully fledged instrumentation for physical, chemical, microbiological and micro sanitary, standard analytical procedure conformed to ASTA/OAC/EWISO guidelines.

Major Quality Assurance Policy HACPP- Hazard Analysis 84 Critical Point Policies

Delivering constant and high quality natural plant extract, Meeting and exceeding the customer expectation. Ensure safe product by implementing good manufacturing practice right through the processing step from raw materials and finished products. Motivating employees training and development and effort for production of environment in its operations.

Glass PoliciesAVT NPL is a natural production processing industry manufacturing spice oleoresins, food flavour, natural antioxidants etc. AVT ICPL is committed to avoid production contamination due to breakage of glass by; Preventing any unauthorized glass usage. Ensuring classification of glass used in the processing and non-processing area into four groups based crystals and how essential for processing by ensuring adequate safeguard to address food safety. Progressively moving towards reduction in processing area.

4.8 PURCHASE DEPARTMENT

Figure 4.8.1 Structure of Purchase Department

The purchase department in the AVT NPL is headed by GM Purchase and assist by managers. The department ensures that it intense and use the best of materials appropriate to the needs. The department has two sections;

Purchase

Procurement

Purchase Department

Purchase department takes care of all the capital purchases which include machinery, spare parts, coils and lubricants, chemicals and stationary materials. The department does not handle raw material procurement. The Purchase Process As Follows: The store department has to send the material indent to the procurement department. After getting the material indent the department will see whether the item is budgeted or not and whether it is in the Capital Appropriation Request (CAR) which is approved by the Chairman. After proper vendor evaluation the purchase order is raised and the item is purchased.

Procurement Department

This department takes care of consistent and on time supply of raw materials as per the requirements of production and planning department. To develop raw supplier and new source of raw material to get the cost advantage to the organization the department ensures that vendor and evaluated to maintain the quality of the raw material being supplied by them. The GM Procurement is responsible in ensuring evaluation and approval of vendor for the raw materials. The approved vendors are monitored by the message for the supply of raw materials made by them.

SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the strength, weakness, opportunities, and threats involved in a project and identifying the internal and external factors that are favorable and unfavorable for achieving that objective. The technique is created to Albert Humphery who led a research project at Sanford University in the 1960s and 1970s using data from 500 companies. SWOT analysis is undertaken to understand the firms external and internal environments. A conscious identification of the relevant environment enables an organization to focus its attention on these factors which are intimately related to its mission, objective and strategies.

STRENGTH

ISO Certification, Largest producers of Marigold extracts established in the world. Established market abroad. Draw synergies from AVT McCormick in the areas of food safety Backward integration program is a major strength of the organization

WEAKNESS

No direct connection with end consumers. Common people have less awareness about Oleoresin. There is no domestic market for Oleoresins. OPPORTUNITIES

Growing demand for natural products. Chances for diversification. Establishing market all over the world. Chances for the domestic market operations. THREATS

Mass production by China and Peru Domestic competition Unable to supply in accordance with demand due to scanty rain. Seasonal variation may affect raw materials production and procurement.

FINDINGS & SUGGESTIONS

6.1 OBSERVATION

The HR department here brings in a new name for the company -home, where family members work happily, hand which brings in union and strength to home as such. The plant potential, modem technology, quality control methods and policies make the customer a happy man. Surroundings are very clean and attractive.6.2 FINDINGS The company should improve logistic orientation and try to have a logical vision and turn its efforts to meet this vision. The company should also improve its policy for the customers. The company should have a written customer policy. The company measures the customer satisfaction levels. AVT has efficient management system AVT provide free transport and canteen facility to their employees

6.3 SUGGESTIONS AVT should have written customer service policy which communicated internally and externally. Review quality testing and reduce lead time for release. Reduce new product development time. AVT should look up the option of setting up of regional distribution centre in Europe will help to reduce the lead time and increase service level for customers market. The company should measure the customer's satisfaction level. Improve infrastructure facilities. Suggestions should be obtained from employees for future improvements AVT has established market in abroad. But AVT has no domestic market for oleoresin. So AVT should take steps to improve the domestic market

CONCLUSION

The AVT group of companies after 85 years of operation has significant presence in India's agribusiness sector including plantations, agro processing, and plant bio- technology natural food ingredients. The study was carried out in order to analyze and to understand the functional areas of the organization. It is having well structured departments which are functioning efficiently. The unique strength of AVT NPL is that it is the largest producer of Marigold extracts in the world. New frontiers of science and technology will play a dominant role in the future of spice industry. The company which is completing sings in the international market for its business in all aspects of its operations, it is maintaining a very high standard better than other global competitor in utilization of resources, man, machine and raw materials. The company is upgrading its operations to keep up the place of demands from the global market. The organizational study gave me an insight into the functioning of the company AVT. The top management here is very efficient in decision making, even though its functions are more or less similar to public sector undertaking. The AVT has good opportunity in the global market. The companys investment in expansion project provides other private and public institutions with greater business opportunities. The success of AVT would definitely encourage other enterprises to enter the field of natural product. AVT is fulfilling its set objectives and making its mission possible. The company is leading for a bright and prosperous future.

The study in AVT group helped me a lot to understand die application of management practices in an organization. The study was based on the information collected through direct interviews, observations and written statements available from the organization. The study was a great experience and had given me firsthand knowledge about the organization.

BIBLIOGRAPHY

Literacy Reference: AVT NPL, South Vazhakulam, AluvaText Books References: Kothari C.R. Research Methodology: Methods and Techniques, New Age Publishers, New Delhi, 2nd edition 2005. Philip Kotler 2001 Marketing Management, Prentice Hall of India Pvt. Ltd, New Delhi. Pandey I.M. Financial Management, Vikas Publishing House Pvt. Ltd, New Delhi. James Mill and Robert Torrens Principles of Political Economy, 1817Website: www.avtnatural.comwww.indianspices.comwww.marigold.com

JAI BHARATH SCHOOL OF MANAGEMENT STUDIES