IN THE COMPANY

The department headed by marketing manager and under him there are two assistant managers one for sales dispatch and other for customer service and sales promotion. The company incurs less advertisement cost. As for the kind of products its advertisement needs a different way of promoting its products. The company gives dealer board to dealers as an advertisement for their product. The other advertisements used are

1) Product pamphlet 2) Notices 3) Cinema slides 4) Cloth banners 5) Wall paintings 6) Yearly calendars. 6

SELECTION OF DEALER

The field staff under assistant customer service and complaint manager will evaluate the dealer on the basis of his financial capabilities and the scope of demand of products in the area. If the dealer doesnt buy at least one load of cattle feed in row of 3 month, automatically the company will terminate his dealership.

PRICING METHOD

In the case of oil price is based on Cochin market .the price is based after evaluating of raw material and procurement and storage costs plus profit.

DISTRIBUTION

There are two types of distribution 1) cost. 2)

EX FACTORY RATE --- company need not bear the transportation and insurance RATE AT DESTINATION --- company need to bear the transportation &

insurance cost.

Chapter 4

PRODUCTION DEPARTMENT

FLOW OF AUTHORITY

PRODUCTION MANAGER

ENGINEER

ASST. PLANT ENGINEER

MAINTENANCE FOREMAN

ELECTRICAL FOREMAN

STORE OFFICER

GODOWN EXECUTIVES

The core of a production system is its conversion sub system, where in workers, materials and machines are used to convert inputs into product and services. This process of conversion is at the heart of production function and is present in some form in all organization .It may be stated that every organization irrespective of its purpose , has a production function where departments and personnel play a central role in achieving the objectives of the organization .

FUNCTIONS

Production process Employee supervision Maintenance of machines Quality assurance Production plan 10

Production control Maintaining a hygiene work place Management of different shifts of employees, Maximizing the production with minimum resource

In KSE, production takes place in 3 plants.

1) 2) 3)

Solvent Extraction Plant Cattle Feed Plant Refining plant

SOLVENT PLANT

The raw material used by the company in this plant is the re oiled coconut cake having about 8% of oil content .the coconut cake is being put into a slow moving conveyor or belt .The next process is heating up of the cake and after that hexane a product of petroleum would be spread into the cake. The mixture of oil and hexane is known as miscella. The next step is to separate the solvent from the cake and is stored for use. For one tonnes of coconut 11

cake the usage of hexane is 9.19kg.Here 24 hr production takes place and it produces 200 tons per day.

There are 3 shifts

8A.M ---4 P.M 4P.M--- 12 A.M 12 A.M---8 A.M

CATTLE FEED PLANT

In this plant the company uses different types of cakes according to their availability apart from other material the co. uses coconut cake, sun flower cake, mustard cake , soya been ,wheat ,calcium ,vitamins, cotton seed, phosphate, tapioca ,maize, jowar and other vitamins. Except from the coconut cake all other materials are purchased from other states. Here 24hr production takes place and it produces 650 tons per day.

MMCP TECHNOLOGY

12

MILLING This is being used for ensuring that all the granules are grinded, screened 3mm sieve. The materials feed into grinder are powered and it passes through the screen provided at the bottom side of the grinding chamber. Two hammer mills at 30 tonnes per hour together are used.

MIXING The raw material will be mixed thoroughly by using horizontal mixer. Capacity of this mixer is 6m.

COOKING
The steam for cooking is produced using 3million tonnes boiler. The mixer or homogeniser carry out a strong mixing while the mash is moved forward and added with dry saturated steam. The cooking is carried out at a temperature of 80degree Celsius using a high pressure dry saturated steam.

PELLETING
The pellet mill dye by rotating drags the mixture of mash and steam towards the roller, which press it and consequently compel it to pass through the hole of the dye. It increases the density of the mixture, which together with heat generated by the saturated steam facilitates the

13

extraction of the pellet. Two pellet machines are there with 15million tonnes per hour capacity each.

REFINING PLANT
In this plant oil is refined according to the seasonal demand. Here two types oil are refined

1) Solvent Extracted oil 2) Sunflower oil

Here 20 tons per day is produced. The oil so produced will be colorless and odorless so it is not used for household consumption. The main users of this oil are oil millers, industries who use this as an ingredient for its product.

14

Chapter 5

SWOT ANALYSIS

STRENGTH

1) Experience in the field over 25 years

2) Leadership in the market

15

3) Reputation & brand image of the co. & consistent quality of its products

4) Good network of dealership

5) Capable marketing personnel

6) Financial strength of the company

7) Acceptability of the feed & its quality standards in the market

8) Fully computerized plant 9) Efficient employer employee relationship

10) Excellent infrastructure for manufacturing products.

WEAKNESS
1) As industries are importing cheaper oils which affects the demand of solvent extracted coconut oil. 2) Inadequate promotional activities for dairy products. 3) Stagnant numbers in cattle population affecting market growth in future

OPPORTUNITIES
1) Expanding its distribution areas

16

2) Growing demand of its products

THREATS

1) Competition from other manufactures of organized and unorganized sectors

2) Probable entry of foreign entities

3) Indirect control by government over price of milk

4) Import of cheaper oils for industrial consumption leading to fall in demand for solvent extracted coconut oil

SOCIETAL ETHICS
PROPER DISPOSAL OF WASTES THEREBY CONTROLLING ENVIRONMENT POLLUTION

17

 PROVIDING DIRECT AND INDIRECT EMPLOYMENT 25 LAKHS donated to Tsunami Relief fund

10 LAKHS DONATED TO EARTHQUAKE RELIEF FUND OPENING OF K.S PARK Childrens Park and Information Centre has been opened for the benefit of the public

SUGGESTIONS

1)

Use of more board display advertisement.

2)

Reference group should be formed to educate consumers. 18

3)

Give timely rest to workers in order to produce consistent performance.

4)

To increase the productivity to meet the growing demands.

5)

Providing proper safety equipments to protect them from hazards.

6)

Company can earn more profit by expanding the market.

CONCLUSION

19

KSE, a Company having an annual turnover of Rs. 187 Crores, is the largest manufacturer of cattle feed. It provides employment to around 1500 numbers directly and another 5000 indirectly. Its shares are being listed in three stock exchanges in Cochin, Chennai and Mumbai. The Company commenced its production in the year 1972.

It is marketing annually about 1.80 lakh tones of superior quality cattle feed. KSE had successfully launched its Vesta Brand Ice Cream which has been well accepted in the market for its matching international quality standards. KSE plans to add more ice cream production units across Kerala in the coming years to serve all pockets.

KSE is in the oil extraction Industry for the past 31 years. It is having two solvent plants with processing capacity of 100 tonnes per day. The Company has also a chemical oil refining plant of 20 tonnes per day.

The Company has secured the National Productivity Award for the year 2001-2002 for being first in terms of production efficiency in the animal feed sector. This is the sixth time in that the Company is being selected for this most coveted award.

It is pertinent to note that in the Kerala industrial scenario, where many Companies are closing down, either due to labour unrest or due to other economic reasons, KSE continues to commence new ventures each year and run them successfully. The Company is having six Units at different locations. The relation with the labour Unions of all these Units is very warm and cordial.

KSE, with a capital base of Rs. 36 Crores embarks on an expansion to double its Solvent Extraction capacity and add a most modern ecofriendly vegetable refining plant. The Company has already identified Six Acres of land in the KINFRA Small Industries Park, Koratty for this expansion.

20

In the first phase the Company plans to install one 200 MT per day solvent plant for processing Oil Cakes and also a 100 MT per day physical refining plant. Both these plants will be of international standard using most modern technologies, where the process loss is kept to the minimum. The project will generate direct employment to 125 and indirect employment to another 500 numbers. In the second phase, a 100 MT per day oil fractionation unit will also be added.

As a pioneer in the solvent extraction industry, leader in cattle feed manufacture, and an emerging force in ice cream and a resourceful new entity in dairy development and milk products, KSE is determined to move with the times, taking on new challenges, achieving new milestones.

BIBLIOGRAPHY
REFERENCE BOOKS Marketing Management Human Resource Management Production and Operation Management Philip Kotler Ashwathappa .K. Ashwathappa. K.

21

WEBSITE WWW.KSELIMITED.COM

22

23