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An ORGANIZATION STUDY On Menma Food Industries

Submitted to

Mahatma Gandhi University Kottayam,Kerala

In partial fulfillment of the requirement For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

2010-2012 By Vysakh Babu

Register No: 21725 Admission No: MM1/095/10 July2011 Under the Guidance of

Mrs Anjali ( Asst.prof)

MARIAN ACADEMY OF MANAGEMENT STUDIES puthupady P.O, kothamangalam

DECLARATION

I ,Vysakh Babu an MBA student of Marian Academy of Management, Puthupady do hereby declare that this report on Organization study at Menma Food Industries, under the guidance of Ms Anjali , Faculty of Operational Research, Marian Academy of Management Studies in partial fulfillment of the requirements for the award of the degree of Master of Business Administration is a bonafide study I have done in the organization. I also declare that this report has not been previously formed for the award of any Degree, Diploma, Associate ship, Fellowship or any other similar title of this or any other university or institution.

Kothamangalam. 14th july 2011

Vysakh babu

ACKNOWLEDGEMENT

I would like to take the opportunity to express my profound gratitude to all the people who have helped me to successfully complete is organizational study with their sound advice and able guidance. I place my sincere thanks to Mr.shafeek muhammed Mg Partner , Menma Limited for permitting me to do the organizational study at Menma . I would also like to thank the members of all other departments for their constant support and guidance I am greatly thankful to Prof.Dr P K Sundaresan, Marian Academy of Management Studies for providing proper encouragement in the completion of the organizational study. I express my sincere gratitude to Asst.Prof.Anjali sijo , whose guidance and support throughout the organizational study helped me to complete this report successfully. I would like to express my profound gratitude to all faculty members of Marian Academy Of Management for their interest and co-operation in the regard.I would like to thank my classmates for their support and co-operation.

Above all I would like to thank The almighty for all the benevolence that He shower on me and to have helped me to complete this work very successfully

Kothamangalam 27/10/2011

Vysakh Babu

CONTENTS Chapter No; Contents Page No

1 1.1 1.2 1.3 1.4 1.5

Introduction Need &Significance Of The Study Objectives Of The Study Scope Of The Study Methods Of Data Collection Scheme Of Reporting

6 7 7 7 8 9

2 2.1 2.2 2.3 2.4

Company Profile Introduction To Company Vision And Mission Organizational Structure Industry Profile

10 14 15 15 9

3 3.1 3.2 3.3 3.4 3.5

General Management Practices Planing process Descion making process Information system Communication system Corporate management representatives

4 4.1 4.2 4.3 4.4 4.5 4.6 4.7

Functional Departments of MENMA Human Resource Department Marketing Department Production Department Accounting & Finance Department Other Departments

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contents

Page No

Swot Analysis

68

Conclusion

71

Bibiliography

73

List of Chart & Tables

No 1 2 3 4 5 6 7 8 9 10 11

Chart no Chart 2.1 Chart 4.1 Chart 4.2 Chart 4.3 Chart 4.4 Chart 4.5 Chart 4.6 Chart 4.7 Chart 4.8 Chart 4.9 Chart 4.10

Chart name Organisation structure HR department structure Marketing department Production department Finance department Purchase department General stores Maintenance department Quality control Transport Packing house

Chapter-1

INTRODUCTION

INTRODUCTION

Organization is a social unit which is deliberately constructed and reconstructed to seek specific goals .An organization comes into existence when there are a number of persons in communication and relationship to each other and are willing to contribute towards a common Endeavour. The evolution of organization dates back to the early stages of human civilization when two or more persons began to cooperate and combine together for fulfilling their basic needs of food, clothing, shelter and protection of life .Thus, an organization is born when people combine their efforts for some common purpose. It is a universal truth that an individual is unable to fulfill his needs and desire alone because he lacks strength, ability and resources. So he seeks the cooperation of other people who share goals with him. This organization study is carried out at Menma food Industries Ltd, Manikkinar; .The organization study has been carried out to get an understanding of the structure and functioning of the organization.

1.1) NEED & SIGNIFICANCE OF THE STUDY

Organization is one of the inevitable part of business & management .there for study of organizational structure management process, functions etc.... are very significant as far as present day trend is concerned textile industry and business is fast growing one. The study is very important for knowing the following. 1) 2) 3) 4) To have an idea about the products To have an idea about the organizational structure of the company To have an idea about the departmental functions of the company To have an idea about the financial position of the company

1.3) SCOPE OF THE STUDY The internship training was intended to provide Industrial exposure to the trainee and bridge the gap between theory and practice .the study was only covered the few departments of MENMA FOOD INDUTRIES LTD namely personnel & administration(HR) department, the finance department,

marketing department ,production department, purchase department and was intended only for a period of one month from 15th June 2011 to 15 the July. The study was mainly conducted to understand the functions , processes and procedures of different departments of the company. This training report covers the details of the departments in which the trainee could get access and interact with responsible executives.

1.4) METHODOLOGY

This study was a descriptive study conducted mainly to familiarize with the activities, processes, policies, programmers and procedures followed in the firm. Required data for the study was collected through monitoring and interrogation. The study is made personally visiting the company at

Manikkinar.the data were collected through various methods. the methods adopted mainly are:

1) Primary data 2) Secondary data

METHODS OF DATA COLLECTION

Primary data

Observation Interviews Interactions

Secondary data

Website Documents Organization manuals

Primary data
Primary data collected through discussion with manager, various department heads ,officers and employees.

Secondary data
Secondary data for the study was collected from both internal annual reports, website, office records were used for collecting relevant information for this study. and external sources . Internal records like annual reports, website, office records, management reports, house magazines were used for collecting relevant information for this study. The data needed to prepare this project was obtained from other published sources like internet, magazines, business dailies, journals and business magazines

1.5)SHEME OF REPORTING This report is presented in five chapters .the first chapter introduces the study by highlighting the need for the study, the study objectives, methodology and scheme of reporting. The second chapter on industry profile discuss about the textile industry. it describes about the world textile industry and the Indian textile industry in detail. Third chapter describes profile of MENMA FOOD INDUSTRIES PVT LTD. the fourth chapter describes the detailed study of different departments in which the trainee had under gone the training. The fifth chapter describes the suggestions and recommendations .the last chapter includes the conclusion.

OBJECTIVES OF THE STUDY To have an overall study of the company and to familiarize with its various functions To enable the trainee to understand the organization structure and processes in a practical o setting. To get an idea about how different functional departments are structured and of them operate To know how the key business processes are being carried out in a manufacturing firm. To have first hand information about the various policies and programmes of the firm. To provide an opportunity to the trainee to analyze real life problems and apply the concepts and theory learnt in the class room how each one

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Chapter-2

INDUSTRY PROFILE

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INDUSTRY PROFILE

Spices play an important role in enhancing the flavour and taste of the processed foods. They are also used in the medicines because of their carminative, stimulative and digestive properties. India produces almost all the known spices and is the largest exporter of this commodity. Ground spices are extensively used in all types of curried dishes in India and abroad. Although spices are traded chiefly in an unprocessed form, a small yet significant quantity enters international trade as spice powders. Curry powder is the foremost of those blends or mixes and sometimes consists of 20 or more spices designed to add the characteristic flavour of an Indian curry, which is appreciated all over the world. Apart from the overseas market, processed curry powder is becoming popular in the domestic market also. Hence the demand for unadulterated spices and curry powder in attractive handy packaging, is fast emerging. By 3000 B.C. turmeric, cardamom, pepper and mustard were harvested in India. The Harappans who occupied Harappa and Mohenjodero in the Indus Valley, were of mixed stock, somewhat larger in stature than either the Sumerians or Egyptians denying theories that they were an extension of those communities. They had club wheat, barley, sheep and goats from the Iranian Plateau and cotton from Southern Arabia or North East Africa but were held back by their reliance on flood waters due to general lack of knowledge of irrigation. Sumer had trade links with the Indus Valley via Hindu Kush by 3000 B.C. and by sea from 2500 B.C., thus linking the Harappans with both Sumerians and Egyptians, where cumin, anise and cinnamon were used for embalming by 2500 B.C. By 1750 B.C., the Harappan civilization had disappeared, probably due to floods and tectonic shifts, to be replaced by the Aryans who invaded via Hindu Kush by 1500 B.C. The Aryans had considerable contact with Babylon from whence the original flood legend arose to be adopted by both the Aryans and the Hebrews and several other civilizations. Curry powder was largely popularized during the nineteenth and twentieth centuries through the mass export of the condiment to the western table, throughout Europe and North and South America and through its use in British Army rations. Curry powder did not become standardized, as many of the original blends of curry powder were still available throughout the world. The late 1960s and early 1970s saw a growth of Indian-based food consumption in the west and internationally. This led to an increase of Indian restaurants throughout the world. The tradition of keeping special blends of curry powder simply became uneconomical, and curry powder became increasingly standardized outside India.

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Spices, aromatic vegetable products used as flavoring or condiment, normally refer to the derivatives from certain herbs like Seeds, Leaves, Bark, roots etc. They are used mainly for enhancing taste of the food. The name spice is derived from the word species, which was applied to groups of exotic foodstuffs the Middle Ages. Spice term was formerly applied also to pungent or aromatic foods, to ingredients of incense or perfume and to embalming agents. Modem usage tends to limit the term to flavorings used in food or drinks, although many spices have additional commercial uses, e.g., as ingredients of medicines, perfumes, incense and soaps The earliest literary record in India on spices is the Rig Veda (around 6000 BC). The story of Indian Spices dates back to 7000 years into the past. In the modern world, major trade is related to eating and spices provide the major thrust - traditionally a country of agriculture, India leads the trade. Spices can improve the palatabilily and the appeal of dull diets or spoiled food. Piquant flavors stimulate salivation and promote digestion. Pungent spices can cause sweating, which may even cause a cooling sensation in tropical climates; on the other hand they can add a sense of inner warmth when present in cooked foods used in cold climates. In India, traditionally, spices formed a part of common man's daily food. India and Spices Indian Spices played important role in the history of various lands, discovered or destroyed, kingdoms built or brought down, wars won or lost, treaties signed or flouted, flavours sought or offered. Spices have also played a political role in the history. The use of spices from the Hast became a status symbol by the year 1200 and the European preoccupation with the world of spice was born. The use of spice in food meant money and power, and lite desire to acquire these precious status symbols led to world exploration panglobal communication, trade, alliances and wars. Indian Spices also fitted into philosophic concepts of improving health, since it was understood that they could affect the four humors (blood, phlegm, yellow bile and black bile) and influence the corresponding moods (sanguine, phlegmatic, choleric and melancholic). Thus, ginger would be used to heat the stomach and improve digestion; clove was believed to comfort the sinus; mace would prevent colic and bloody fluxes or diarrhea; nutmeg would benefit the spleen and relieve any bad cold.

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Business of spices Within the past one decade the international trade in spices has grown by leaps and bounds. An estimated 500,000 tonnes of spices and herbs valued at 1500 million US dollars are now imported globally every year. An impressive 46% of this supply-comes from India. India's exports of spice extracts have shown spectacular growth attaining over 50 percent of the global market within a short span. The Indian export of spices has crossed the 450 million US dollar mark during 1999-2000 and has reached 468 million US dollar. This remarkable achievement is born of a sea change in the industry scenario. From traditional commodity exports, Indian Spices have evolved into a state-of-the-art industry. The Indian share At present, India produces around 2.5 million tonnes of different spices valued at approximately 3 billion US $, and holds the premier position in the world. Because of the varying climates suitable for the spice cultivation. Almost all spices are grown in this country. In almost all of the 25 states and seven union territories of India, at least one spice is grown in abundance. No country in the world produces as many kinds of spices as India. In recent years, export of Indian Spices has been taking giant leaps. The Indian export of spices has crossed the 450 million US dollar mark during 1999-2000 and has reached 468 million US dollar. The Spices Board, India is the apex for the export promotion of Indian Spices The Board has been with the Indian Spice industry every step of the way. The Board plays a far-reaching and influential role as a developmental, regulator and promotional agency for Indian Spice Spice Business in Kerala. Kerala is a land of spices considering the large variety of spices grown in the state. Today there are as many as 26 Indian spices that are greatly in demand in different countries. Little wonder then that India is the single largest source of spices in the world. The most popular among the spices are pepper, cardamom, turmeric, chilies and ginger. Pepper, known as the 'King of Spices' is perhaps the world's oldest known spice and is cultivated in over 158,000 hectares in Kerala, which accounts for 96 % of the total production in the country. There are a lot of opportunities for investors in the spice sector and Spices Board, the caretaker of the sector in India is based in the state.

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COMPANY PROFILE

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COMPANY PROFILE

MENMA FOOD INDUSTRIES Ltd has established in the year of 1994. . It was promoted by K.S Mohammad, K. M Shihab and Kerala State Industrial Development Corporation Ltd. The main object is to manufacture food products. It is also having the certification of ISO 9001-2000. It is one of the leading food products manufacturers in Kerala. Impeccable quality, reasonable prices and timely delivery of the products are the hallmarks of the enterprises. The organization is a progressive manufacturer, exporter and trader of chilly powder, coriander powder, turmeric powder, wheat powder , . Equipment with the latest technology and supplemented by skilled work force have enable the company to stand up to stringent national and international standards. The company has carved a valuable rich for itself in todays competitive business scenario by delivering higher grade solutions at reasonable prices. The group started its activities by venturing into wholesale trading. Subsequently the group diversified its business into manufacturing and sales of bar soaps, detergent, match box.

Menma Vision A. To be a preferred employer in the industries we are in, by providing challenging work

environment and adding value to our people through varied exposure and continuous education. B. To be preferred suppliers catering to the basic needs of the mass market by providing

products of outstanding value through adoption of global standards and innovative practices.

Few of keynote worthy achievements under this eminent management are the following:1. 2. 3. 4. 5. 6. 7. 8. ISO 9001 2000 Certified company Human Resource Development concepts fully implemented Quality circles formed and working effectively TQM implemented which is headed by a TQM professional Enterprise Resource Planning implemented Progress in introgression of operation Finance committee receives the performance of each unit every month Corporate governance introduced

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MENMA FOOD INDYSTRIES AT A GLANCE Name of the firm Year of establishment Registration Number Industry Name Nature of organization Status Number of Employees TIN No CST No Land Area Building Area Bankers Registered& Corporate Office : : : : : : : : : : : : : MENMA FOOD INDYSTRIES LIMITED 1994 L25119KL1993PLC007213 Food Processing / food Products Public Limited Company ISO 9001-2000 154 32151527054 1515C-002705 3 Acres 20,000 Sqft The Federal Bank Limited Mather Square, 6th Floor North Railway Station Road, Ernakulum, Kochin-16 Factory : Manikkinar, Kothamangalam, Ernakulum (Dt). Auditors : JVR & Associates Chartered Accountants Ernakulum Cochin 16

Registrar and share transfer Agents:

Integrated Enterprises (India) Ltd., Ernakulum, Kochi 18

Main Product

a) Aliya wheat powder

Branches

a) Coimbatore b) Indore

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Exports

Aliya food Ltd, Mainly exports its goods to:a) Dubai b) Saudi-ariba c) Qatar

BOARD OF DIRECTORS Mr. K.M. Shihab Mr. M.E. Mohammed Mr. Shefeeq Mohammed Mr. Shajesh Mohammed Mr Babu K.M Mr. Joseph Vargese : : : : : : Chairman Managing Director Director Director Director Director

Product profile No 1 2 3 4 5 6 7 8 9 Item Wheat powder Chilly powder Coriander powder Meat masala Chicken masala Fish curry masala Rasam powder Sambar powder Pickle powder Packs available now 500g 1kg 5kg 100 g 250 g 500g 1kg 100 g 250 g 500g 100 g 250 g 500g 100 g 250 g 100 g 250 g 50g 100 g 250 g

100 g 250 g 100 g 250 g 500g

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Production Process Purchase of raw material Drying and cleaning Grinding Mixing Packing Dispatching Drying and cleaning The company cleaning the raw material before its transformation. In this stage company removing the dust and unnecessary parts. At the same time company drying the raw material necessary.

Grinding At the same stage of grainding the raw material transformed in the form of finished products, ie, in the powders dust CTC machine is using these for secondary. Mixing This is the fourth phase of production process. Mixing use especially in masala. Powders and pickle mixes etc. Packing. After the second phases company is packing the products in plastic cover, bottles etc. Packing The company packs its products in polythien cover and bottles. Plant Layout The company have process layout must be affect companies efficiency, quality of production, supervision etc. Process layout help to the company for effective suspension, quality checking in each stage, effective utilization of spices etc.

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Structure of the plant layout Drying machine Cleaning machine Grinding Machine Packing Machine
Method of releasing the raw material for production FIFO method

The Menma foods products and Curry Powders Company release the raw material in the first in first out method (FIFO). Menma foods products and Curry Powders Company have a very good production department. The main objectives of the production department is quality maintenance because quality is more important especially in the case of food products. The company successfully maintaining the products quality by highly involving workers and management.

Bonus

The company gives at the time of festival occasions, such as onam, Christmas, Ramzan etc.
Workers Participation in management

The company considers the valuable suggestions of workers especially I packing design, products quality maintaining etc. The company has good distribution channels Whole sailors Retailers Shops Customers

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Advertisement

Menma Foods and Curry Powders Company gives advertisement through different media like, electronic media, print media, and wall paints etc.
Co-Brand

The company market is produced under the brand name Promise. Co-Brand the company market is product under the Co-Brand Name Alia especially for wheat powder.

EXPORTS

Exports of processed food have been identified as one of the thrust area for augmentation of country's exports. India exports of processed foods also need expensive diversification at present about 54% of the export reach the USSR and another 20% gulf countries. The agricultural and processed food products export development authority (APDA),proposes to setup exports complexes for fresh fruits and vegetables in Bombay, Calcutta, New Delhi and Trivandrum processed food items currently exported, cover a wide gamut of items, such as fruits and vegetables meat products and other miscellaneous item of which , fruits and vegetables, is one of the important area offering scope for export development the main constraints that inhabit export growth are the high fright and lack of adequate air cargo space. The export strategy should take suitable measures to neutralize them. Today with the indigenous availability of a variety of raw materials, growth of Agriculture in India coupled with the development of technology, machinery, and equipment required which are mainly met indigenously a remarkable growth is foreseen.

The countries small scale industry based on food processing can now confidently look forward to a very healthy growth because of the small capital investment, simple process of production besides large employment potential. It cannot be denied that this wide spectrum of item of food processing industries had changed the life of every Indian in some way or others. Hence with maximum encouragement, the processing capacity will increase by leaps and bounds. Today a group of educated entrepreneurs are marching ahead with noble ideas and ready to work hard. Basically those entrepreneurs are really frustrated by unemployment even through they are properly trained and educated. They are searching a way to earn their

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live hood the government and supporting department should definitely help them to implement their project ideas. Products marketing Menma foods & curry powders marketing their products under the brand name of Promise curry powders and is well accepted by the consumer's ion the market. Now this brand is having ovary strong dynamic and result oriented and target achieving marketing using. The main competitors of Promise curry powders are Pooja curry powders, Melam Masala and Saras curry powders. The main areas where the promise curry powders are marketed on Trivandrum, Ernakulum, Idukki, Pathanamthitta districts. More over he company can planned to meeting the delivery schedule at least 90% of orders received in a period reducing customers complaints 10% every year. Increase the customers base at least by 5% during the financial year 2008-2009.

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ORGANIZATIONAL CHART

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ORGANIZATIONAL STRUCTURE

Manager

Supervisor

Company operator

Accountants

Machine operators

Sales representatives

Manual workers

Others

Chart-2.1

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Chapter-3

GENERAL MANAGEMENT PRACTICES

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GENERAL MANAGEMENT PRACTICES The planning process:-

Analyses the external environment Analyses the internal environment

Define the business mission

Set corporate objectives Formulate strategies Make tactical plans Build in procedure for monitoring and controlling
The decision making process:-

The all decisions are taken by the top level management on the basis of daily meeting and weekly meeting.
Information system

Menma food Industres mainly used to MIS (management information system) . other information systems are ; Letters Daily meeting Weekly meeting
Through computer

Communication system

Letters

Daily meeting Weekly meeting Through computer Telephones Inter office memo Circulars Display Board

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Duties and responsibilities of the top level managers

All the personnel have requisites authority to discharge responsibilities indicated against their functions. Apart from the specific responsibilities mentioned all personnel have organizational freedom to Identify and record any problems related to product , process (Quality Management System) Initiate action to prevent the occurrence of any non conformities related to the product ,process and QMS. Initiate ,recommend or provide solutions through designated channels. Verify the implementation of solution Implementation and maintenance of QMS. Top management consists of Chairman Vice chairman Group Director project and operations Group Director Manufacturing and Technical Group Director Finance and Accounts The Duties And Responsibilities and authorities of all the employees communicated through job profiles. and QMS

1. Chairman Formulating Quality Policy and objectives Overall control of company and sustained growth Chairing management review meetings Financial decision Providing Resources 2. Vice chairman Approval of new project Charging management review meeting in the absence of chairman 3. Group Director project and operations In charge of all construction activities In charge of all purchase activities

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4. Director Manufacturing and Technical Establishing and Maintaining QMS. In charge of all manufacturing activities In charge of all technical related activities In charge of all HR related activities. 5. Group Director Finance and Accounts Financial planning and accounting Financial control and responsible for all audit related activities

Corporate management representative

Mr .Shefeeq Muhammed ,Group Director Manufactuiring and Technical has been appointed as corporate M R by chairman ,who in addition to his other responsibilities acts as the chief person to coordinate for the effective implementation and monitoring of QMS of the entire group of companies . Management representative Mr Nelson M paul, Assi . Manager Technical is appointed as management representative who in addition to him other responsibilities ensure that all the requirements of quality management system in accordance with the international standard ISO 9001:2008 are established implemented and maintained . Following are responsibilities of management representative . Implementation of Quality policy and Quality objectives. Organizing internal audit. Control of Quality manual and Quality system

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Chapter-4

FUNCTIONAL DEPARTMENTS

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DEPARTMENTS

Departmentalization is a method of arranging activities to facilitate the accomplishment of organizational objectives. The organization process of determine how activities are to be grouped is called department. The departments show the horizontal different of an organization. The main departments are:

HUMAN RESOURCE OR PERSONNEL DEPARTMENT

MARKETING & SALES DEPARTMENT

PRODUCTION DEPARTMENT

ACCOUNTING & FINANCE DEPARTMENT

PURCHASE DEPARTMENT

OTHER DEPARTMENTS

Under the General Manager we have: Purchase Manager, Production Manager, HR Manager, Financial Manager and Marketing Manager.

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1.

HUMAN RESOURCE OR PERSONNEL DEPARTMENT (HR)

Managing Director

General Manager General Manager

Chief Manager Chief Manager

Junior Manager Junior Manager

Office Assistance

Chart-4.1 Functions of HR Department

To maintain good relationship between the employees To look into the welfare of the employees To maintain leave register Attendance making Overtime confirmation

It is the department that is connected to other departments in Menma food industries. This department is headed by Joint General Manager. Under him Joint Chief Manager followed by Junior Executive and Office Assistants. This department does the recruitment and selection of the personnel. Another important function of the personnel department is to look into the welfare of its employees. Time office comes under this department. The function of the time office is to maintain leave register, attendance making, over time confirmation etc. The above data is forwarded to the accounts department for accounting the wages of the employees.

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Recruitment & Selection

Workers The workers are selected through interview and physical test. Every worker is liable to be transferred from one department to another and one job to another according to the experience of work in the factory. Office Staff Recruitment of office staff is done through direct application . Selection is mainly based on written test and interview. But it is also done according to the discretion of management. Selected persons will have to undergo training, which is usually six months it is based on the working experience. Managerial Level Recruitment for managerial level is done through direct application . Selection is mainly based on written test and interview. Selected persons will have to undergo training for more than one year.

Salary and Wages Salary and wages paid to the employees are determined on an agreement between CMI and Trade Union.

Leave Pattern There are 14 days of casual leave and 12 days of sick leave. For non staff workers 18 days of privilege leave are allowed and for Officers it is 30 days.

Working Conditions Proper working conditions are maintained. Facilities like bathroom, toilets are provided at all plants and in offices. Rest rooms and seating facilities are provide

Canteen A fair price canteen is operating at the premises. The employees are given Rs 25 per day of attendance as canteen allowance and maximum of Rs 750 per month.

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Transportation Free transportation facility is provided to employees for coming and returning after duty. Transportation facility is also provided to the children of the employees for attending the educational institutions in and around Kothamangalam.

Quarters Facility A limited numbers of employees are provided with quarters with free electricity and water. Very nominal rents are charged for them.

LABOUR WELFARE FACILITIES IN MENMA FOOD INDUSTRIES LTD

Insurance Facilities Menma food industries Ltd provides insurance facilities to its labours. Company mainly provides two types of insurance facilities which are: Workmen compensation insurance policies Medi- claim policies.

Factory labours include permanent workers and casual workers. Insurance facilities are mainly provided to permanent workers.Two year medi-calim policies are taken for casual workers In case of major accidents the company provides compensation to labours by way of taking workmen compensation insurance policies.

Insurance Scheme A labour is entitled for the insurance scheme up to Rs.50000/- for injury caused during employment.The insurance scheme in case of death is amounted to Rs.100000/-

Canteen The organization provides canteen facilities to all employees. Free food is given to every employee every day. So 100% canteen facilities are provided by the company for the welfare of labours.

Ventilation The factory has effective and suitable ventilation for the circulation of air and maintains a temperature as will secure to workers there in reasonable condition of comfort and prevent injuries.

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Medical Facilities Company provides medical facilities to employees. First aid appliances are also maintained in the factory. In the case of any minor accidents, hospital treatments are provided. Company takes medi-claim policies for the protection of its employees. Provision of medical facilities protects the health of labours.

Accommodation Company provides accommodation facilities to the employees. It is arranged near to this firm. It helps the employees who are living in distant place. It is to be noticed that the accommodation facilities are provided mainly to other state labours. But accommodation facilities are not in a good condition. To solve this bad condition, a new building is to be established by the company. Wages and Incentives Salaries are provided on the basis of number of days worked during a month. Factory wages are calculated on the basis of number of hours worked. Working time of labours is 8 hours. So wages are provided on the basis of working hours. Production incentives are also offered to employees. A production target is fixed for providing incentives. Incentives are provided to those employees who attain the production target. Production target may different in different months. Incentive should be provided to an employee who works for 23 days without taking leave. Benefits Provided for Women Workers Company provides maternity benefits to regular women workers. Separate rest rooms and uniforms etc. are also provided by the firm for the welfare of women workers Rest Rooms This firm also provides rest rooms for employees for takes rest. This room is properly lighted and ventilated. Rest Time The rest time of workers is thirty minutes at the lunch time. Drinking Water Facilities The firm provides drinking water facilities to the employees. The effective arrangements shall be made to provide and maintained the suitable water facilities to the employees. Entertainment Programmes The firm conducts entertainment programmes for the employees. The firm conducts Onam Celebration programmes and other festival programmes in some year. . Free Uniforms Two types of uniforms are provided by the company to the workers. One is for working categories and another one is for managerial staff. Navy blue is uniform color of working categories. Managerial staffs wear grey color uniforms. Women wear churidar.

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Washing and Bathing Facilities Firm provides bathing facilities to labours. The firm issues bath soap and washing soap to the labours. Latrine and Urinals In this firm, there are separate latrines and urinals for male and female workers. It should be cleaned, lightened and ventilated.. Leave Facilities The firm allows 18 leaves per year for permanent workers. An employee is working for 20 days. He can take one additional leave i.e. Privileged leave or earned leave. Accident leave is also provided. Arranging Loans The firm arranges loans to its employees without charging any interest. The limit of interest free loan is amounted to Rs. 10,000/-. Provision of D.A, T.A, Etc. This allowance is given to protect the real wages of workers during inflation. It is paid mainly to offset the rise in prices. Traveling allowance is provided to employees to meet company requirements. Provident Fund Firm arrange provident funds for employees. Firms provident fund scheme is the contribution of 12% of basic salary and dearness allowance for permanent workers and employees. Gratuity Fund The company is a member of group gratuity scheme of the Life Insurance Corporation of India. Annual contributions are charged off to the revenue. Holidays Company allows leave to employees on public holidays. The important holidays allowed by the firm are: Republic day May day Independence day Gandhi Jayanti Sivaratri Good Friday Thiruvonam S.N.Guru jayanthi Ramzan Mahanavami Deepavali Bakrid Christmas

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Benefits to Casual Labours The company provides monetary benefit to casual labours such as dearness allowances, shift allowances, production allowances, production incentives overtime incentives and bonus.

Safety The firm arranges various safety measures for labours. Safety inspections are conducted once in a month. The inspection panel includes representatives from maintenance department and human resource department. The DMQC reviews the report and follow up action initiated. Safety conditions include the following aspects: Display of safety instructions in prominent and relevant places in the plant Providing dress glows, shoes and masks Workers and operators give instructions regarding the importance of following safety aspects.

Safety measures and inductions are provided in two reads 1. Educational safety and 2). Protection safety Educational Safety: a). Conducting special classes for safety b). Arrange demonstrations for safety once in a year c). Pre-induction training regarding safety regulation must be provided for new recruits

Work Environment The management determines and manages the work environment needed for the conformity to the product and to make employees to work in a good environment by adopting the following methods a). Health aspects of workers and employees to ensure work environment b). Cleaning of work places and machineries c). Proper lighting d). Facilities such as drinking water, urinal, latrine etc. e). Safety conditions Precautions The firm undertakes precautionary measures for the protection and safety of employees. Fire extinguishers of required class and type are provided by the company. Demonstrations are arranged minimum once in a year to educate about the operation of different classes of fire extinguishers. All machinery and equipments are insured and the company also takes medical and on the job

accident insurance.

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Work schedule The working time of the company is from 9.00 a.m. to 5.00 p.m. on working days. On Saturdays, office time is till 1.00 p.m.

Employees Strength (As on 25.06.2011)

Total Employees Department Managers Board of Directors Grand total

124 male + 30 female

= 154 = 5 = 8 = 167

RESPONSIBILITY OF HR MANAGER:

Manpower planning to meet company objective. Searching and locating quality human resources. Advertisement, Selection, Induction and Placement. Job Analysis. Developing suitable incentive plan. Periodic evaluation of performance. Maintenance of employee records. All work related to ESI and PF. All work related to employee insurance. Employee welfare, accommodation and entertainment. Housekeeping of factory, office and premises. Maintenance of employee feedback system such as suggestion box. Need assessment and preparing annual training plan.

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2.

MARKETING DEPARTMENT

MENMA FOOD INDUSTRIES PVT Limited has got a very good marketing department controlled by efficient and dynamic marketing managers.Mr.M V John is the marketing manager of MENMA .Marketing Manager Reports to General Manager and Managing Director. Marketing Department is divided in two sections, such as marketing of finished goods and advertising and sales promotion. Under each section assistant managers, marketing executives, sales executives and salesmen are there to assist him

Functions of marketing department

Protect the interest of customers. Tie-up with the dealers. Monitoring of supply chain system. Identify distributors. Studying market fluctuations. Maintain customer relationship. Gather market information. Study the conditions existing in competitive firms. Through better and effective distribution of product, increase the availability and reduced cost

of distribution.

Objectives of marketing
The marketing department of aqua tech has put down the following as their objectives. To provide guiding policies regarding market procedures and their implementation. To analyze the shortcomings in the existing pattern of marketing. To develop an intelligent application of modern marketing practices. To study marketing problems according to circumstances and to suggest solutions.

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General Manager (Marketing)

Chief Manager Marketing Manager

Administration

Sales Representatives

Junior Executive

Sales Representatives

Chart-4.2

The company markets its processed products ( Wheat powder, coriander powder, turmeric etc ) mainly through dealers. the company has a dealer network of more than 250 dealers spread all over Kerala. Almost all MENMA products are available at the dealer shop. the products are transported to the dealers by delivery vans. Sales executives take orders of different items from the dealers once in a month.

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CO-ORDINATION OF MARKETING ACTIVITIES The marketing executives in MENMA follow certain procedures. all sales executives have to report to the assistant managers in sales every day .the assistant manager and marketing manager are in constant touch with the sales executives who are in the field. The sales executives have to daily sales report in all Mondays. Meeting of allpersonnal in marketing department is presided by the general manager. In this meeting all the activities and achievements are discussed. new plans and strategies to increase the sales formulated and other issues are discussed.

MARKETING POLICY The marketing policies of MENMA in such way that it does not entertain middleman. a direct marketing approach and all the dealings are direct. there are no stockiest of whole salers.it can be seen that MENMA by following this approach has a more favorable condition in the market situation .the company is following a hierarchical channel of distribution Company

Dealers

Consumers

CUSTOMERS
The companys customers are average and above average income earners.

MARKETING DEPARTMENT OF MENMA FOOD INDUSTIES

The marketing department of MENMA is very efficient, it scans the environment ,analyses marketing opportunities ,designs marketing strategy ,implementing and controlling marketing functions .It employees direct marketing strategy, avoiding intermediates ,Menma enjoys large customer in core markets especially in south Indian market, it has high demand.

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ADVERTISEMENT The basic function of the advt is to influence and motivate people to buy a product .the main media used by the company are television and print media .Apart from this advertisement are made through hoardings ,wall paintings, banners ,metal boards, stickers and danglers. The company has special advertisement, schemes, i.e. sponsoring entertainments like sports and festivals.

MARKETING FUNCTIONS MENMA has a dealer network of more than 250 dealers who spread all over Kerala .It sales all over Karnataka and Tamil Nadu.. Dealership are allotted only after assessing of credit worthiness efficiency etc. Dealers obtain the products upon order over the van of company and products are delivered either at go down or showroom.

ROLE OF MARKETING MANAGER Monitoring of order taking and to ensure promote delivery Occasional field visits to follow upon the sales executives Direct enquires to be dealt Attending marketing meetings chaired by the marketing manager and follow up of the

decisions taken Maintenance of customer relationship Marketing survey report analysis Supply of products based on the order taken and handling collection of cash cheque ,

demand brand money etc. from dealers, outstanding collection etc. MARKETING STRATEGY Marketing department of MENMA is very vigilant of its environment and also very conscious of market potential about their major competitors, companys strategies, weakness etc... .as a result of stiff competition the top management has appointed a general manager in the marketing and he looks over all the activities very efficiently.

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Major competitors of MENMA are EASTERN, SARAS, MELAM, DOUBLE HOURSE etc.. and they adopt various marketing strategies this companies also offer a wide variety of Packing and taste of products which attract customers. their marginal price will be also high when they sell to their dealers but in the case of MENMA the margin is very less. Also the firm enjoys a good market owing to its quality even though it has a bit high pricing ,but when compared to other companies poor quality products. its profitable. Profit margin of products is 15 -20%.MENMA also has technical competence, it has introduce new automatic grinding machine which except eastern, no other manufactures introduced MARKET SEGMENTATION We know that customers preference vary with segments and different aspects. the marketing segmentation procedure of MENMA mainly focuses on surveys. Marketing manager conducts survey process. The staff of research and development department does this process, this includes informal interview with a focus group of customers. This is done to gain a clear insight in their motivation, attitude and behavior. Using their findings a researcher prepares a formal questionnaire which is administered to a sample of customers to collect data on the following Brand awareness and rating Product usage and pattern Demographic, psychographic details of respondents

MARKETING MIX Marketing mix consist of everything a firm can do to influence demand for its products. MENMA also follows the ideas of marketing mix, they are PLACE MIX Location of plant is one of the early decisions of entrepreneur has to make for earning maximum profit. Location determines the survival as well as the prosperity of business in the free market economy. the unit is located Manikkinar,Kothamangalam.the total extent of land is around 15000 square feet .it is well connected with road. the availability of skilled and unskilled labor is also a factor in selecting location Nearest places Railway station : 34 KM Airport Town Hospital :Cochin (38 KM) : 14 KM :MBMM Hospital, ST Joseph Hospital (14 KM)

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PRODUCT MIX The food products produced are the finest quality and it mostly used for various export purpose .they provide curry powders in various quantity as per customer specification. The Menma product is reputed for its quality and free from weaving defects up to greater extent. The special feature is that raw material are passed through strict inspection.

PRICE MIX The company maintains stable price for a long period of time. price of product depends on the price of Raw materials .it maintain constant price and concentrates on quality of product and so it requires less investment in advertisement and sales promotion and also very well formulated pricing policy is provided.

PROMOTIONAL MIX To promote its products advertisement are used in MENMA .the basic function of an advertisement is to influence and motivate people to buy products in MENMA various advertisements agencies are called upon and a brief idea is given about what to advertise and these agencies prepare a pre

demonstration .the marketing manager general manager ( marketing) and the general manager directly analyze and select the best among them and entrust the agencies for covering their advertisements plans.Menma chooses the following media: Video ads :C.E.E videos,SAN videos Closed circuit TV :K.S.R.T.C,Railway station Print media :All dailies,Vanitha,Grihalakshmi,etc.

Demonstrarion and sponser events Banner,metal board,wallpaper etc. In addition,the customer get valuable information from companys website. FUNCTIONS OF ADVERTISING Cheaper of pricing Windening of the market Reduction of distribution expenses Promotion of social welfare.

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MENMA-STAGES IN THE PRODUCT DEVELOPMENT PROCESS Idea research Screening analysis Product development Market testing Commercialization

MENMA-STAGES IN THE PRODUCT LIFE CYCLE Introduction Growth Maturity Decline

PRICING STRATEGEIS Prestige pricing Skimming pricing Penetration pricing Price lining Dual pricing

MENMA CHANNELS OF DISTRIBUTION Distribution is the act of carrying goods or services from the producer to the customer

DISTRIBUTION OF CONSUMER GOODS Producer Producer Producer consumer retailer wholesaler consumer Retailer Consumer

DISTRIBUTION OF INDUSTRIAL GOODS Producer Producer industrial user industrial distribution user

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MARKETING SYSTEM

Production

Dealer

Showroom

customers

CRITERIA FOR SELECTING DEALERS Usually not more than two dealers are appointed in a town .dealers are selected on their experience in relating potential of particular town after selecting dealers a contract is entered between the dealers and company the contract lays certain items and condition of dealership at the time of appointment. A deposit of 2000 is accepted from him. The dealer is allowed 12% interest per annual of the deposit received. The deposit decrese is payable on termination of dealership effort. PRODUCT INNOVATION Company takes its time to analyze its opportunities and prepare the best product and then compete itself for the long run to make product a success. All the products are marketed through a network of over 250 authorized dealers. Marketing Activities The industry has a well established marketing department. There is an efficient sales force which is under the Marketing Manager. The whole system comes under the General Manager. Marketing Distribution Channels Company Sales Promotion Menma industry has an advertisement budget of 5 lakhs per annum. Since the amount is too small the company is advertising at low level. Other promotional activities include conducting dealers meetings once in two years. In addition to these the company offers various incentive schemes for its dealers according to their sales performance. Due to very low advertisement budget the company does not engage in any large scale type of advertisement activities. The company occasionally engages in advertisement through newspapers, magazines etc. The main modes of advertisement are displaying boards which are positioned where they get maximum attention. They also use Asia net cable vision, wall painting etc. Wholesalers Retailer Customers

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Competition The company is facing tough competition from the companies like Eastern, Sevana, Nirapara, ,Melam,Saras etc. The major competitors are Eastern and Brahmins. The MENMA products give good quality and more benefits to customers in a low cost compare to the competitors. Procedure For Marketing And Distribution The company has been carrying out production oriented strategy. With the entry of competition the need for marketing oriented strategy is analyzed. The company was mainly depending on distributors in various regions. The company care about the availability of the products in the markets so the company provides better transportation facilities for the product distributions. The company owned more than 30 vehicles (delivery vans) they make the distribution is efficient in side Kerala. The products are exported to Middle East countries like Dubai, Saudi, Qatar etc according to the demand.

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3. PRODUCTION DEPARTMENT

Among all functional areas of management production is considered as a crucial in any industrial organization like MENMA FOOD INDUSTRIES LTD. Production is the process by which raw material and other inputs are converted in to finished product. In MENMA mainly the production of food products take place under the production. Production manager is the head of production department.Mr.M Ajith is the production manager in MENMA FOOD INDUSTRIES LTD the production department or factories have an installed capacity of grinders and generally 100% capacity is utilized for production. In addition to those grinders, the company has recently installed 22 modern grinding machine. The advantages of these machine over modern machine that they are, fully automated, more productive with quality goods at reduced manpower. Modern grinding machines are operated by qualified and highly experienced personnel. They hired from other operated by qualified and highly experienced personnel. Other workers are trained to operate the modern machines under the experienced worker. The ordinary grinding machines are also in the process of automation or modernisation,85% of the modernization works is completed. The company also has a plant in Coimbatore The various reasons, which can be attributed for the decrease in actual production that compared to the production capacity due to the failure in supply and unexpected break down machines. To counter failure in the power supply , the machines is having 11KV diesel generator station. To over come major as well as minor looms breakdown there is a well- equipped maintenance department with experienced mechanical and electrical engineers with all the required tools and other equipments. The maintenance mechanism followed is preventive in nature. The company is undertaking production on job order basis. The production department works in 8.00A.M.to4.00PM

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General Manager (Operator)

JCM Production & Service

Dy. Manager (Kiln)

Junior Manager

Junior Executive)

Charge Hands

Senior Machine Operator

Machine Operators

Helpers

Chart-4.3
PRODUCTION HEAD Overall supervision and control of all the section in the production areas of MENMA and

to provide quality products in accordance with the requirements and to maintain high productive standards .

Prescribing required quality control measures and implementing the same. Planning, scheduling and co-ordinating work of different sections of the department. Raw materials indenting or scheduling and co-ordination with purchase department. Implementing preventive maintenance system for all equipment and machineries installed.

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To control wastage to the minimum, both in finished goods as well as raw materials consumption. Production functions

In a manufacturing company the production function may be split into five sub-functions:

1.

production and planning The department will set standards and targets for each section of the

production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of production, rather than at the end as is the case for businesses using a quality control approach.

2. Purchasing The department will be responsible for providing the materials, components and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality.

3.

Stores The department will be responsible for stocking all the necessary tools, spares, raw materials

and equipment required to service the manufacturing process. Where sourcing is unreliable, buffer stocks will need to be kept and the use of computerized stock control systems helps keep stocks at a minimal but necessary level for production to continue unhindered.

4. Design and technical support the department will be responsible for researching new products or modifications to existing ones, estimating costs for producing in different quantities and by using different methods. It will also be responsible for the design and testing of new product processes and product types, together with the development of prototypes through to the final product. The technical support department may also be responsible for work study and suggestions as to how working practices can be improved.

5. Works The department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs. The works department may also have responsibility for quality control and inspection.

A key aspect of modern production is ensuring quality. The term quality means fitness for purpose i.e. a product, process or service should do exactly what is expected of it.

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HEALTH AND SAFETY POLICY

MENMA Limited, a leading manufacturer of condiments industry and committed to

protect employees by imparting training and providing personnel protective equipments where ever necessary. technology. Protect the environment by imparting necessary to training to the employees a monitory Protect equipments by incorporate built in safety system using modern engineering

and controlling the efficient discharge as per the stipulation laid down by Kerala state pollution control board. Maintain clean and safe working environment. Aims for achieving a accident level by investigate and analyzing the accident and

implementing the recommendation suggested by prevent recurrence.

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FINANCIAL DEPARTMENT

Board of Directors Board of Directors

Managing Director Managing Director

Chief Manager Finance Chief Manager Finance

Assistant Manager Assistant Manager

Office Staff

Chart-4.4

The finance department maintains all the accounts of the various departments in an organization. It is the duty of the finance department to receive money and make payments on behalf of the company. It also prepares the annual budget according to which the expenses of the company are monitored. The finance department is a vital part in an organization, as without finance the day to day activities of the company will not function in a smooth and rapid way. It is the core of the organization. The cash section and account section also forms part of finance department. The recording of day -to-day transactions routine functions like sales tax, payments and receipts of cash, Cheque etc comes under the purview of accounts section. The accounts section also undertakes the employees payroll function. The cash section deals with the disbursement of cash.

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The important managerial finance functions are:

Investment decision: A firms investment decision involves capital expenditures. They referred as capital budgeting decisions. A capital budgeting decision involves the allocation of capital commitment of funds to long term assets that would yield benefits(cash inflow) in the future. Financing decision: financing decision is the second important function which a financial manager performs. He or she must decide when, where from and how to acquire funds to meet the firms investment needs. The financial manager must strive to obtain the best financing mix or the optimum capital structure for his firm. The mix of debt and equity is known as the firms capital structure. Dividend Decision: A financial manager must decide whether firm should distribute all its profits or retain them, or distribute a portion and retain the balance. The proportion of profits distributed as dividends is called the dividend payout ratio and the retained portion of profits is known as the retention ratio. A financial manager should consider the questions of dividend stability, bonus shares and cash dividends in practice. Liquidity decision: Investment in current assets affects the firms profitability and liquidity. Current assets should be managed efficiently for safeguarding the firm against the risk of illiquidity. Lack of liquidity in extreme situations can lead to the firms insolvency. A financial manager should develop sound techniques of managing current assets. If a firm does not invest sufficient funds in current assets, it may become illiquidity and risky. In a broad sense, it is concerned with planning and controlling firms financial resources. The finance department is headed by responsible executives; the finance director carries out these functions. Financial statement analysis The analysis of financial statement is the process of evaluating the relationship between component parts of the financial statements to obtain a better understanding of the firms performance and position. Financial statements are annual documents prepared by organizations for periodical review on the progress by the management and deal with the status of investment in the organization and results achieved during the period of under review. Financial statements are the financial periods of work done during the accounting period say a year. Financial statement are prepared for the purpose of presenting a periodical review or report by the management and deal with the state of investment in business. They reflect a combination of recorded facts, accounting conventions and personal judgments. Only those facts which are recorded in the business books are reflected in the financial statements. The first task of financial analyst is to select the information relevant to the decision under consideration from the total information contained the financial statements. The second task is to arrange the information in a way to high light significant relationships.

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Functions of Finance Department Financial forecasting and planning Acquisition of funds Investment of funds Maintaining proper liquidity Assigning the Chief Accounts officer and others Accounting of all receipts and payments, cash at bank, sales etc. Preparation of annual accounts and other periodical report and statements Checking of wages and salaries Regular payments of statutory dues like Provident Fund, Sales tax etc. Furnishing necessary records relating to finance cash to Managing Director or Chief

Accounts Officer. Financial Management is that specialized functions of general management which is related to the procurement of finance and its effective initialization for the achievement of common goal of the organization. It deals with each and every aspect of financial activity in the business. It includes planning and control of financial resources. It is also concerned with finding out various sources for raising capital for the firm. The source must be suitable and economical for the needs of the business. The most appropriate use of such funds also forms a part of Financial Management. Finance is indispensable to facilitate efficient and effective operation of business enterprise. In this context, effective financial management holds key to success in todays highly competitive world, modern financial managers are assigned five roles: Planning of funds Raising of funds Allocation of funds Control of funds

There are mainly three sectors of finance department of MENMA FOOD INDUSTRIES. They are 1. 2. 3. Accounts Section Finance Section Cash Section

1. Accounts Section The most important task done by accounts section is the recording of day to day accounts. Routine accounting functions like sales tax payment, receipts and payment of cash; cheques etc. come under the preview of the accounts section. The employee payroll function is also undertaken by the accounts section of the finance department.

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2.Finance Section Finance section is mainly concerned with the maintenance of accounts. The various financial statements are kept in the computer as well as in the manual form. 3. Cash Section The cash section is concerned with the disbursement of cash.

Duties Of Finance Department i. ii. iii. iv. v. Overall financial control Monitory decision making in consultation with Managing director Finalization of accounts Budget preparation Control overall matters relating finance in the organization The accounts and finance departments have to ensure that the salaries due to the employees are paid in time. The department is also concerned with the preparation of budget and budgetary control of the concern. The department has to ensure that all the entries are properly posted in the books of accounts.

The main accounts that are kept by the accounts department: i. ii. Cash book General ledger

Scope Of Financial Management It can be summarized as follows:

a) Estimating financial Requirements The first task of a Finance Manager is to estimate short term and long term financial requirements of his business. For this purpose, he will prepare a financial plan for the present as well as for the future. The amount required for purchasing fixed assets as well as needs of funds for working capital have to be ascertained. The estimations should be based on sound financial principles so that neither there are inadequate nor excess funds with the concern. The inadequacy of funds will adversely affect the day to day working of the concern whereas excess funds may tempt the management to indulge in extravagant spending for speculative activities.

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b) Deciding capital Structure Capital Structure refers to the kind and proportion of different securities for raising of funds. After deciding about the quantum of funds required, it should be decided which type of securities should be raised. It may be to arise finance through long term debts Even here if gestation period is longer, the share capital may be most suitable. Long term funds should be employed to finance working capital. Entirely depending upon over drafts and cash credits for meeting working capital needs may not be suitable. A decision about various sources of fund should be linked to the cost of raising funds. If cost of raising funds is very high, then such sources may not be useful for long. A decision about the kind of securities to be employed and then proportion in which these should be used is an important decision which influence the short term and long term financial planning of the enterprise.

c) Selection of Sources Of Finance After preparing a capital structure, an appropriate source for finance is selected. Various sources from which finance may be raised include share capital, debentures, financial institutions, commercial banks, public deposits etc. If finances are needed for shorter period, then banks, public deposits and financial institutions may be appropriate, on the other hand, if long term finances are required, and then share capital and debentures may be useful. If the concern doesnt want to tie down assets as securities, then public deposits may be the suitable source. If the management doesnt want to dilute ownership, the debentures should be issued in preference to shares. The need, purpose, object and cost involved, may be the factors influencing the selection of a suitable source of financing.

d) Selecting a Pattern Of Investment When funds have been purchased, then decision about investment pattern is to be taken. The selection of an investment pattern is related to use of funds. The funds with have to be spent first on fixed assets and then an appropriate portion will be retained for working capital. While selecting a plant & machinery, even different categories of them may be available. . The decision making techniques such as capital budgeting, opportunity cost analysis etc. may be applied in making decision about capital expenditures. While spending on various assets, the principles of safety, profitability and liquidity should not be ignored. A balance should be struck even in these principles. One may not like to invest on a project, which may be risky, even though there may be more profits. e) Proper Cash Management Cash management is also an important task of finance manager. He has to assess various needs of the company at different times. He has to make arrangements for cash. Cash may be required a) to purchase raw material b) to make payment to creditors c) to meet wage bills d) to meet day to day expenses.

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The usual source of cash may be a) cash sales b) collection of debts c) short term arrangement with banks etc. The cash management should be such that neither there is a shortage of it nor it is idle. Any shortage of cash will damage the creditworthiness of the enterprise. The idle cash with the business will mean that it is not properly used. Cash flow statement is regularly prepared so that one is able to find out various sources and applications. All these information will help in efficient management of cash.

Income Statement or Profit and Loss Account: It reveals the profit or loss arising from the operations of a business. It gives the results of operations of a business and gives an idea about the progress of a business over a period of time. It presents the summary of revenues, expenses, and net income or loss of a firm.

Balance Sheet: It is the most significant financial statement. It indicates the financial condition or the state of affairs of a business at a specific moment of time or a particular date.

Funds Flow Statement:

The fund flow statement analyses the causes of changes in the firms working capital position. Working capital is the difference between current assets and current liabilities. Working capital determines the liquidity position of the firm.

Cash Flow Statement:

The cash flow statement is prepared to analyze changes in the flow of cash only. A firm needs sufficient cash to pay debts maturing in the near future, to pay interest and other expenses and to pay dividend to shareholders.

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OTHER DEPARTMENTS o o o o o o o o o PURCHASE DEPARTMENT GENERAL STORES MAINTENANCE DEPARTMENT ELECTRICAL DEPARTMENT QUALITY CONTROL DEPARTMENT TRANSPORTATION DEPARTMENT PACKING HOUSE TIME OFFICE SECURITY DEPARTMENT

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1, PURCHASE DEPARTMENT

General Manager (Operation)

Joint Chief Manager (Purchase)

Junior Manager (Purchase)

Junior Executive Officer

Office Assistants

Office Assistants

Chart-4.5

Functions of Purchase Department in MENMA Placing order Inviting quotations Correspondents

To perform the functions effectively, the purchasing department has to follow the following procedure.

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a. Purchase Requisitions The purchase officer does not initiate any action for purchasing of materials on his own record. With the help of purchase requisitions, the purchase officer come to know the types of materials needed by the organization. A purchase requisition is a from used as a formal request for the purchasing department to purchase materials. b. Exploring The Sources OF Supply & Selecting The Supplier A source of supply of materials is to be selected after the receipt of purchase requisition. In MENMA, the process of choosing the supplier is not a hard task. The store keeper generally mentions the name of current suppliers, their price quotations and the purchase department also has a series of good suppliers. Choosing the right supplier from the suppliers list involves a process of comparative statement of purchases. It is a statement prepared by the purchase department. c. Purchasing Order After choosing the supplier, the purchase department prepares the order for the supply of stores. The order is a written authorization to the supplier to supply the particular material or materials. It is the evidence between the buyer and the supplier having the terms and conditions of the purchasing order.

d. Receiving & Inspecting Materials In large concerns, a separate receipt & inspection department independent of stocking location should be set up to receive and inspect the materials. But in small concerns, the work is done by the store keeper. In MENMA, the stores department makes the general purchase only. When goods are received in stores, the consuming department is informed and the personnels from this department come to stores and inspect the quality, quantity etc. e. Checking & Passing Bills Of Exchange After checking, the bills are passed. Generally, the payment terms of MENMA are Against invoice or acceptance of stock a minimum 15 days credit In case of monopoly suppliers, they are sent or paid through banks. Advantages of Purchase Department In MENMA 1. Because of centralized purchasing of materials, favorable terms like trade discount or economic in transportation cost can be obtained, because quantity will be large. 2. The purchase department is staffed with highly paid officials who are experts in the art of purchasing the material. Specialized knowledge and skill of these persons can be utilized. 3. All records with regard to purchase department is kept under the supervision of the purchase officer. 4. This department helps in achieving uniform purchasing policies, practices and procedures. 5. It avoids duplication of efforts and is helpful in achieving standardized products.

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Vendor Selection The MENMA has a main list of suppliers for all items it have to purchase. The company invites tenders through advertisements in the newspapers. The suppliers give quotations and after a detailed study of the concerned department, the supplier should be selected and the order is placing. Vendor Rating A vendor is rated according to his monopoly in the market, brand equity of the products, his established dealings with other reputed organizations. There is a vendor evaluation committee which evaluates the vendors. The committee consists of officers from concerning finance and material departments. Vendor who is rated below 50% will be removed from the lists. Vendors rated between 50% & 75% are advised to improve their quality. Vendor Re-evaluation Rating The suppliers of raw material who are re-evaluated periodically by the company. i ii Vendor supplying all raw materials for white cement and cement paint. Packing material

iii Critical spares and machinery

POLLUTION CONTROL The company does not have any pollutant products/bye products. In the addition to this ,the factory and premises are cleaned in a regular basis.

2 . GENERAL STORES Purchase Manager

Store keeper

Assistant store keeper

Helper

Chart-4.6

Sweeper

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Functions of General Stores Department

To store the raw materials for different departments To prepare the purchase order To prepare the stores records such as Bin card and Karade - X card

General stores is the department for storing the raw materials. The materials are collected as per the order made by the department, which is known as purchase order.

Advantages of Centralized Stores In MENMA Better control can be exercised over stores because all stores are housed in one department. Better layout of stores is possible. Investment in stock is minimized. Economy in cost. Economy in staff and concentration of experts in one department will lead to development in high technical skills. Less botherisation in inventory checking as all the stores are located in one place.

Stores Records The Bin card and Karade X card are the two important stock records that are kept in MENMA for making a record of various stores.

1. BIN CARD A bin card makes a record of the receipts and issue of materials and is kept for each item in the stores. Quantity of materials received are entered in the receipt column and the quantity of stocks issued are recorded in the issue column of the bin card and the balance of the quantity of stock is taken after every receipt or issue , so that the balance can be seen readily at any time. A bin card is usually hanged up or placed in shelf, rack or bin where the materials have been kept.

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2. KARADE X - CARD This card is used in MENMA by store keeper in addition to the bin card for storing the list of stock of items. MENMA doesnt maintain a stores ledger now, instead of this all the details are stored using software in the computer. The existing system is a Foxpro based system.

3 . MAINTENANCE DEPARTMENT

The company has 1 workshop under the control of the mechanical maintenance department. All machinery works and repairs are undertaken in the workshop.4 members are there in the workshop.

Mechanical section
All the mechanical works are undertaken by the mechanical section of the maintenance department. The company has a workshop under the control of this department. Total number of workers in the mechanical section is 10 . The rest include officers and other skilled workers.. There are 4 section of maintenance (workshop). 1. Welder 2. Blacksmith 3. Automobiles 4. Lathe section -1 -1 -1 -1

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Functions of Maintenance Department Operation of electrical equipments & machineries Maintenance of electrical equipments & machineries

Maintenance of equipments

Annual maintenance

Preventive maintenance

Half yearly maintenance

Quarterly maintenance

Monthly maintenance

Fortnightly maintenance

Weekly maintenance

Daily maintenance

Hourly monitoring

Chart-4.7

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4 . ELECTRICAL DEPARTMENT

This department deal with all the works connected with the electrical equipment, power links and other allied activities. Consumption of electricity per day is 1300 units. The electricity bill in a month is Rs 85000 . If the plant is not working or functioning the company has to pay Rs 30000. This is a fixed charge set by the government. The total number of employees in the electrical maintenance section is 2. The main activities undertaken in the electrical section of the maintenance department can be discussed as follows: The electrical section undertakes mainly three types of maintenance works .They are:

1. Break down maintenance. 2. Preventive maintenance. 3. Shut down maintenance.

1. Break down maintenance

In case of any break down of the machineries in the production departments information regarding the break down is given to the maintenance department, and subsequently maintenance workers are sent to the production department to solve the machine failures.

2. Preventive maintenance
Under this activity, a team of maintenance workers is sent directly to the production plant to check out whether there is any failure in the machinery or not.

3. Shut down maintenance

When the plant is shut down, the employees in the production department sent a letter to the maintenance department to solve failures.

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5 . QUALITY CONTROL DEPARTMENT

Production manager

Junior Manager (Quality control)

Junior Manager (Lathe)

Junior executive (Lathe) Junior Executives ( Lathe)

Junior Executives Assistant Chemist ( Lathe) Junior Executives ( Lathe) Gauger Chief

Junior Executives ( Lathe) Tester

Junior Executives ( Lathe) Sample boy

Junior Executives ( Helpers Lathe)

Chart-4.8

Junior Executives ( Lathe)

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Functions Of Quality Control Department

To test the quality of raw materials To whether the product involves the right proportion of raw materials To maintain the quality of the products There are three levels of testing conducted in the laboratory. They are:

a) Raw Material Testing Raw materials are tested for ensuring the quality of products even before manufacturing. b) Process Testing Process testing is done before the grinding of lime shell, sand and clay. c) Intermediate Testing In this testing, slurry is tested for finding out whether it contains right proportion of lime shell, sand and clay. Then slurry is taken to kiln for burning. 6 . TRANSPORTATION DEPARTMENT Chief Manager

Deputy Manager

Transport Controller

Charge hand

Fitter

Barge crew

Chart-4.9

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Functions Of Department Staff conveyance Free transportation facilities are given to the staff to come to the office. For the purpose the company has two buses of their own. It is available to workers in all shifts. Transportation facilities to employees childrenAs a welfare measure, free transportation facilities are provided to employees children. For bringing them to the schools in and around Manikkinar, this facility is available. For providing goods to customers If a person purchases one of the products from the company, free transportation facilities are provided for bringing the same and he will get it at the premises of his house.

7 . PACKING HOUSE

Packing house in charge

Assistant in charge

Supervisor

Packer

Helpers

Chart-4.10

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8 . TIME OFFICE Time Office comes under the personnel department. The main function of the office is to maintain attendance register and calculate the monthly working hours of each employee. The company follows punch card system for measuring attendance.

9 . SECURITY DEPARTMENT The department is mainly concerned with the security and control of the company. There are 2 employees working in the security department on shift basis.

10 . MEDICAL DEPARTMENT

This department provides medical aid to both permanent and temporary employees. The medical leave of the employees is recorded and sectioned from this department.

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Chapter-5

SWOT ANALYSIS

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SWOT ANALYSIS STRENGTH. Ability to meet huge requirements at any point of time. Better internal control. Highly experienced management team. Skilled experienced and efficient workers. Strict measurement for Quality control. Better location for transportation. Production process without causing harm to the environment. Better working condition. Suitable environment for processing. Using good and quality rawmaterials.

WEAKNESS Slump in market. Government policies aganist the export. High cost of materials. Change in the habits and preferences of customers. There is no proper communication between workers and management

OPPURTUNITIES Exclusive changes in food industry. Company has an oppurtunity to diversity their products. Market expansion. Globalised economy.

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THREATS
Stiff & severe competition from rivalries. High cost of the product. Lack of quality raw materials. High labour cost.

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CONCLUSION

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CONCLUSION The project study entitled organizational study of MENMA INDUSTRIES LTD has given me deep knowledge about the organization and the Curry powder industry. The data with regard to the study collected from MENMA helps to understand the process of production of products .each department in MENMA was analyzed in detail. Various processes are controlled and monitored under the skilled supervision and skilled labours. The study given information about the manufacturing products, organizational structure of the company, departmental functions and gives a good knowledge about the financial position of the company. The co-operation and interaction extent by the employees and management of the MENMA have made it possible for the depth organizational study which would be of much used to the research in the future.

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BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS Kothari C.R. Research Methodology: Methods and Techniques, New Age Publishers, New Delhi, 2nd edition 2005. Company Records and documents. Philip Kotler Marketing Management, Prentice Hall of India Pvt. Ltd, New Delhi. Pandey I.M. Financial Management, Vikas Publishing House Pvt. Ltd, New Delhi. Company books and records.

WEBSITES www.menmafoods.in www.google.com

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