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ORGANISATIONAL STUDY OF

AGRO BIO TEC REASERCH CENTRE LTD, KOTTAYAM


A report submitted in partial fulfilment of the requirements for the award of the
Degree of

MASTER OF BUSINESS ADMINISTRATION


of the Mahatma Gandhi University.

Submitted By:

SURAJ A R
Reg No: 60324

Under the guidance of


Ms. Deepthi Sankar

May 2015
DC SCHOOL OF MANAGEMENT AND TECHNOLOGY
PULLIKANAM
DECLARATION
1

I, Suraj A R, a student of DC School of Management and Technology, Pullikanam,


would like to declare that the document work of the project entitled Organisational Study at
AGRO BIO TEC REASERCH CENTRE LTD at Kottayam is an original work done
by me for the partial fulfilment degree of Master of Business Administration, Mahatma
Gandhi University, Kottayam.

Place: Pullikkanam

Signature:

Date

Name:

CERTIFICATE

This is to certify that the organization study titled Organisational Study at AGRO BIO
TEC REASERCH CENTRE LTD is a bonafide record of the work done Mr. SURAJ A R
3rd semester MBA Student of DC School of Management and Technology, submitted in
partial fulfillment of the requirements for the award of the Masters Degree in Business
Administration of Mahatma Gandhi University , Kottayam, Kerala.

Faculty Guide

Principal

Date
Place: Pullikkanam

Examiner I

Examiner II

Signature

Signature

Name

Name

Date

Date

ACKNOWLEDGEMENT

First of all, I thank the Almighty God for standing by me throughout the project and
for making it possible for me to complete the project within the stipulated time.
I am extremely thankful to the staff of all departments especially Mr. Shibu Antony
(Company Manager), AGRO-BIO TECH REASERCH CENTRE LTD KOTTAYAM,
for the encouragement and valuable guidance for the work.
I acknowledge my deep sense of gratitude to the staff member of AGRO-BIO TECH
REASERCH CENTRE LTD KOTTAYAM for having me the prospect to undertake this
organisational study, in this esteemed organisation.
I wish to express my heartfelt gratitude to Mr. B.K. Menon, the principal of DC
School of Management and Technology, Vagamon for their constant encouragement and
support during the entire project work.
I sincerely thank Ms. Deepthi Sankar, Faculty, Department of Management, DC
School of Management and Technology, Vagamon, for providing proper guidance without
which the project would not have been a complete success.
I would also like to extend my sincere gratitude to my parents and friends for all
their support and encouragement for the successful completion of this project.

SURAJ A R

Executive Summary

The organizational study was done in AGRO-BIO TECH REASERCH CENTRE LTD,
KOTTAYAM. The study was done for a period of one month from May, 2015 June, 2015,
which helped to understand the functioning of an organization and its departments.
The objective of the study was to gain a general understanding of AGRO-BIO TECH
REASERCH, the structure and reporting structure of various functional departments and their
activities. The various functional departments include Marketing department, QC department,
Production department, Finance & Administration department and Personnel and
Administration department. Observations and direct interactions with the employees and
employers of the firm helped to gain the learning.
By conducting SWOT analysis, it was found that the strength of the organization is
the strong brand image in Bio Fertilizer. The company was found to have weaknesses as well.
The lack of familiarity of the brand name and the limited promotional efforts were identified.
However, the company has the opportunity to innovate products in the fertilizer sector where
there is strong brand recognition.

CONTENT

Chapter

Particulars

Page No.

INTRODUCTION

1-7

INDUSTRY PROFILE

8-10

COMPANY PROFILE

11-13

PRODUCT PROFILE

14-27

FUNCTIONAL DEPARTMENT OF THE

28-59

ORGANISATION

ANALYSIS

60-66

FINDINGS, SUGGESTIONS, CONCLUSIONS

67-71

BIBLIOGRAPHY

72

LIST OF CHARTS

SI.NO.

TITLE

PAGE NO.

Organisation chart

37

Structure of finance

40

department
Structure of Quality

44

Control& Procurement

department
Structure of Production

48

department
Structure of Marketing

53

department
Structure of Personnel &

61

Administration
department

List of tables

10

CHAPTER-1
INTRODUCTION

11

INTRODUCTION
An organization is the association of persons for achieving certain common
objectives. It is a social system where in its members tries to achieve their private goals while
achieving organisational goals. It is the foundation

upon which corporate management is

build and developed. An organization is a composition of people having different authorities


and responsibilities to utilize exciting resources for achieving the organizational objective.
An organization is a structure, a process and relationship to achieve corporate
objectives under the given environment. It is an essential part of human life. It is not static,
but is dynamic and ever changing as per the needs of the society, its members, corporate
objectives and environmental changes. An organization for business purpose is commonly
known as a corporate body or a corporation or a company or formally established business
unit. It can be formed with certain properties and specific characteristics. It provides
opportunities to exploit the exciting potential of men and materials. It explores the future
possibilities of exploiting human and physical resources which form an association to attain
the group goals.
The authority, responsibilities and the relationship between and amongst the members
of an organization are also a part of organizational function. An organization is just like a
human body. It has some essential features like structure, process, relationship, authority and
responsibility, performance and behaviour of individual and groups. An organisation comes
into existence when there are a number of people in communication and relationship of each
other and willing to contribute common endeavour.

Main characteristics of an organisation:The main characteristics of an organisation are as follows:

Coordination
Rules and regulation
Common purpose
Division of labour
Authority structure
People
Communication

ORGANISATIONAL STUDY
12

Organisational study is the systematic study and careful application of


knowledge about how people as individual and as groups to act within an
organization. It is the study of the organization as a whole and getting adequate
knowledge with various departments in the organization. It encompasses the study of
an organization from multiple view point, methods and level of analysis. Whenever
people interact in the organization, many factors come into play. Modern
organizational studies attempt to understand and model these factors like all modernist
social science, organizational study seeks to control, predict and explains.
This organizational study is contacted in AGRO BIO-TECH RESEARCH CENTRE
LTD. Poovanthuruthu. The aim of the study is to acquire knowledge regarding the
functional as well as managerial aspect of the company.

1.1 IMPORTANCE OF THE STUDY


There is something that cannot be understood by mere reading of textual matter. There is a
need to see the application of textual knowledge be put into real life practice. The Post
Graduate Management course so far has provided with only theoretical knowledge regarding
the various management fields and its aspects. The industrial familiarization program is a
mandatory requirement for a person who is going to be involved in management activities. It is
the management which makes the organization effective and efficient through planning,
organizing, integration and inter-relating organized resources and activities.
The organizational study about AGRO BIO-TECH RESEARCH CENTRE LTD has
provided with information about various steps involved in production, marketing, finance,
human resources, etc. and has been of invaluable help and assistance for achieving excellent
results in the future endeavour of an executive. This industrial/organization familiarization is
an essential requirement of a management student.

1.2 OBJECTIVES OF THE STUDY


1.) To understand the profile of agro bio-tech ltd.

2.) To identify strengths, weakness, opportunities and threats faced by the company
3.)To get an idea about the organization and its various departments
4.)To acquire knowledge regarding the functional as well as the managerial aspects of
the company.
5.)To understand the structure, policies and procedure of the company.

13

6.) To get more awareness regarding the management practice through close interacts
in with the executives.
7.)To understand the key business processes are carried out in the organization.
8.)To gain practical identical and factorial knowledge about the factoring of the
organization.

1.3 METHODOLOGY
Research is an essential and powerful tool in leading man towards progress. It
can be defined as an organised and systematic study of materials and sources in order
to discover new things and established facts and reach new conclusions.
It is the process of gathering information for the purpose of initiating,
modifying or terminating a particular investment or group of investments. The
purpose of applied research is discovering, interpreting and the development of
methods and system for the advancement of human knowledge on a wide variety of
scientific matters of our world and the universe.
Methodology is a description of process or may be expanded to include a
philosophically coherent collection of themes , concepts or ideas as they relates to a
particular discipline or field of inquiry, It is the analyses of the principles of methods,
rules and postulates employed by a discipline. Methodology is the backbone of every
project work. It describes how the researcher selects his sample, sample size, methods
of data collection, various tools used for studying the problem and objectives in view.
Research Methodology is the systematic way to solve a research problem. It is
a highly intellectual human activity used in the investigation of nature and matter and
deals specifically with the manner in which data is collected, analysed and interpreted.
Here we will study various steps which are generally adopted by the researcher in
studying a research problem. It is important that the researcher should have a clear cut
idea about the research methods, techniques and the methodology. The nature and
scope of the researcher greatly affect the choice of the methods that to be adopted for
the collection of research data.

DATA COLLECTION
Data collection is an integral part of a research design. It is a basic factor which gives
the information of the problem or subject under study. It is a term used to describe a process

14

of preparing and collecting data. The purpose is to obtain information to keep on record. To
make decision about important issues to take place early on in an improvement projects and
is often formulized through data collection plan. A formal data collection process is necessary
as it ensure that data gathered is both defined and accurate and the subsequent decision based
on arguments embodied in the findings are valid. In this study both primary and secondary
data have been used.

PRIMARY DATA
Primary data is the data observed or collected directly from the first and experience.
They are actually information which is received by the researcher for the study from the
actual field of the research. It is important for all areas of research because it is the
unvarnished information about the result of an experiment or an observation.
It can be obtained through critical trials, case studies, true experiments and
random wised controlled studies. The popular way to collect primary data consists of
surveys, questionnaire, interviews, observations and scheduled methods. In this study,
mainly primary data is used.

SOURCES OF PRIMARY DATA

Personal interviews with the company professionals and other staff


Observing companies day to day operations

SECONDARY DATA
Secondary data are the information which is attained indirectly. Such data are
generally attained from published materials. Secondary research means to re- process
and re use the collected informations as an indication for betterment of the product
or services.
In secondary data the information relates to a part period. Hence it lacks

aptness and therefore it has an unsatisfactory value.


It is available effortlessly, rapidly and inexpensively.

SOURCES OF SECONDARY DATA


15

Companies web site


Periodicals and publications
Journals and documents
Annual reports.

1.4 SCOPE OF THE STUDY


The study is mainly based on the details collected from various departments.
Here the study analyses functioning of every department and its inter-relations, the
study is purely based on the observations and not a problem based study. It tries to
reveal answers to the questions related to various departments.
Hence the scope of the study is limited to: History of the company
Theoretical background
Departmental analysis
The position and performance of the company.

1.5 LIMITATIONS OF THE STUDY

Time allowed for completing the organisational study was 30 days. To collect

complete data about the company at this time span was a difficult task.
Confidential nature of documents. The company was not able to reveal some

official reports and documents as it is kept highly confidential.


As this is an observational study, the conclusions may be affected by personal

bias of the researcher.


It was difficult to get more details from the officials, as they were busy with

their work.
Lack of enough information from the secondary source of data made the data
collection difficult.

1.6 CHAPTERISATION
The organizational report was mainly divided into seven chapters. It includes

Chapter 1: Introduction

16

Chapter 2: Industry profile


Chapter 3: Company profile
Chapter 4: Product profile
Chapter 5: Functional department of the organization
Chapter 6: Analyzes of the organizational performance of the company
Chapter 7: Finding, Suggestion and conclusion

17

CHAPTER-2
INDUSTRY PROFILE

2.1 INDUSTRY PROFILE

18

Fertilizer sector is very crucial for Indian economy because it provides a very
important input to agriculture. Indian fertilizer industry is regulated by government
policies administering price of fertilizer and the production. Cost of energy varies
from 65% to 87% of production cost. Moreover the fertilizer industry, specially the
ammonia, urea plants, is highly energy intensive in their operation. There are wide
variations in the vintage of fertilizer plant in the country.
In terms of feedstock, major feedstock presently being used in the fertilizer
plant are natural gas, naphtha/ and fuel oil /LSHS.
Over the years, the majority of industry has improved its performance
frequently in terms of specific energy consumption and capacity utilization. There are
several state of the art fertilizer plant operating in India. There are around 27
fertilizer plants in the country engaged in the manufacture of urea.

2.2 SALIENT FEATURES OF INDIAN BIO- FERTILIZER INDUSTRY


A balanced supply of nitrogen, phosphorous and potassium (NPK) is essential
to improve crop productivity in any agricultural system. It is estimated that merely
3.9 1015 tonnes of nitrogen are present in the atmosphere in the elementary form.
None of the living organism except a few bacteria is capable of using this nitrogen
directly as a nutrient source. Rhizobium, Azospirilium and Azotobacter are the most
important nitrogen fixing bacteria and the preparation containing them are commonly
known as bio- fertilizers.
Chemical fertilizers and bio- fertilizers played a major role in the
accomplishment of Indias green revolution. India is primarily an agricultural based
economy thriving on Indian fertilizers. Indian fertilizers manufacture and fertilizers
suppliers have increased production in step with green revolution. It achieved near
self sufficiently in its Indian fertilizer needs. The Indian fertilizers industry is one of
the allied sectors of agricultural sphere. India has emerged as one of the largest
producer of nitrogenous fertilizers, chemical and bio-fertilizers aided with the
constant endeavour of the fertilizer manufacturers and fertilizer supplier.
According to Indian fertilizer manufacturers & fertilizer suppliers, the
production of fertilizers is one of the most energy intensive processes in the Indian
industry.

19

Due to its large share the, production of nitrogenous fertilizers and biofertilizers has the greatest impact on energy use. The major determining factor for
energy efficiency in this industry is capacity utilization.
Feedstock, planned age and global demand for Indian fertilizers have been on
steady. A part from the inorganic fertilizers, the demand for organic fertilizers
produced in India has increased in recent years. The private fertilizer companies in
India are now taking their business to foreign shores, setting a plant in other countries
technology.

2.3 INDIAN BIO PESTICIDE INDUSTRY


The use of pesticides help to reduce the crop losses ,provide

economic

benefits to farmers, reduce soil erosion and help in ensuring food safety and security
for the nation. The Indian pesticides industry with 85,000 MT of production during
FY 07 is ranked second in Asia(behind china) and wealth globally. In value terms, the
size of Indian pesticides industry was estimated at Rs 74 bn for 2007 including
exports of Rs 29 bn globally due to consolidation in the industry; the top 5 global
NMCs control almost 78% of the market. In India, the industry is very fragmented
with about 30-40 large manufacturer about 400 formulators. Per hectare consumption
of pesticide is low in India at 381gm when compared to the world average of
500gms.Low consumption can be attributed to fragmented land holdings, low level of
irrigation, dependence on monsoons, low awareness among farmers about the benefits
of usage of pesticides etc. India, being a tropical, the consumption pattern is more
skewed towards insecticides which accounted for 64% of the total pesticide
consumption in FY07.With the advent of the integrated pest management (IPM)
technique, the use of bio pesticide and generally modified (GM) seeds have increased.
Bio fertilizers and bio control agents are an integral part of performing organic
farming in its real sense.
Bio fertilizers and bio control agents are preparations containing micro
organisms in sufficient number to mobilize or fix and supplement plant nutrition or
produce antibiotics without any negative impact on soil as well as plant or animal
health. These are isolated from the soil grown in aseptic condition to a required
population level and applied in the soil to do the specific desired action. Thus
stimulating the plants to respond favourably so as to reap excellent harvest.

20

CHAPTER-3
COMPANY PROFILE

21

3.1 COMPANY PROFILE


To meet the arduous task of food and fibre requirement, agriculture is to be made
efficient, economical and sustainable. It is their greed and desire for higher productivity, that
they incline themselves to the usage of chemical fertilizers and pesticides. This has not only
resulted in causing serious environmental hazard but also destroyed the ecological balance,
thus depleting the microbes irrespective of the fact whether they are beneficial or harmful.
Appreciation from the farmers who use their products and the feedback from the field
through their sales officers have motivated them to do further research in the field of
agriculture and thus increase their product range and are able to avoid chemical fertilizers and
pesticides completely by substituting it with bio fertilizers and bio pesticides.

VISION
AB-TECH is committed to offer quality services to its customers. The company will
hold itself responsible for total customer satisfaction.

MISSION
To emerge as a world class, multi products, eco-friendly global company through
technological development, innovation & customer satisfaction and thereby to the welfare of
society.

QUALITY POLICY

22

AB-TECH is committed to produce the best quality of world standard biological and
organics through strict quality check measures. Each products passes through rigorous and
exhaustive quality checks before it is rolled out of their plant premises. It is the first ISO
9001-2000 certified bio input manufacturing unit in Kerala.

GOVERNMENT SUPPORT
Agro bio tech research centre ltd, being an establishment having a positive attitude,
and so having a clear vision for a healthy future generation. Honouring their noble vision, the
government of India has provided them with grants for further research and development.
Department of agricultural and co operation functioning under the department of agricultural
has allotted a grand of Rs.10 Lakhs.

ACHIEVEMENTS

The first bio-fertilizer unit to get ISO 9001-2000 in Kerala


The first private sector organisation in Kerala to sign technology transfer contract
with ICRISAT (International Crop Research Institute), the international agricultural

research wing of the UN.


The first organisation in Kerala to get CIB (Central Insecticide Board) accreditation
The first organisation in Kerala to get grant and accreditation from the central

Government
The first organisation in Kerala to manufacture bio fertilizer (ESTD:1993)

TNAU-ABTEC CERTIFICATE COURSE


Tamilnadu agricultural university started open & distance learning-ODL in Tamilnadu
for students who cant attend regular classes in the university and farmers who want to learn
more about agriculture. In order to get the facilitate of these courses in Kerala, TNAU joined
with ABTEC and have started 6 month courses here. Each month alternative Sunday and
Monday 3hrs classes are held. Candidate, who successfully completes the course and exam,
are given TNAU certified certificates.
The main objective of these courses is increase the interest of people
agriculture, to make candidate capable for new agricultural and related jobs, to make people
aware of new agricultural trends.

AGRO SHOP
23

ABTECH has got an agro shop at near Baselious college opp., Kottayam where fresh
vegetables and fruits grown using ABTECH bio fertilizers.

CHAPTER- 4
PRODUCT PROFILE

24

4.1 PRODUCT PROFILE


They are producing a host of bio-fertilizers and bio-control agents including organic
manures under the brand name ABTEC. The bio inputs are manufactured in their fully airconditioned laboratory under the technical guidance and supervision of expert senior
Agricultural Scientists using modern bio-technological methods. All their products are
subjected to strict quality check in all stages of production.

RANGE OF ORGANIC PRODUCTS AVAILABLE ARE:


Bio-fertilizer:

Bio-control agents:

Rhizobium

Tricho (Trichoderma Sp.)

Azospirillum

Pseudo (Pseudomonas fluorescence)

Azotobacter

Beauvaria (Beauvaria bassiana)

Phospho bacteria

Verticillium (Verticillium lecanii)

Bio-Potash (Frateuria aurentia)

Hirsutella (Hirsutella thompsonii)

VAM (V.A Mycorrhizae)

Bacillus (Bacillus Subtilis) (BCB 19 - ICRISAT)


Bacillus thruringiensis (BT)
Paecilomyces (Paecilomyces lilacinus)

25

ABTEC AZOSPIRILLUM

FORMULATION:ABTEC Azospirillum is available in liquid formulation with a high cell


count of 2 X 109 c.f.u./ml. The bacterium lives in close association with and within the root
system of crop plants and has high Nitrogen fixing capacity.

Recommended crops: Rice, wheat, maize, barley, ragi, other minor millets, fodder grass,
sugarcane, rubber, tea, coffee, coconut, cardamom, pepper, cotton, grapes, turmeric, ginger,
banana, vegetables, fruit plants, flowering plants, vanilla, etc.

METHODS OF APPLICATION:
Seed Treatment: Mix 100 ml. ABTEC Azospirillum with 1000 ml. of clean water, mix 20 30 kg. Seeds in the solution by gentle agitation. Dry the seeds in shade for 30 min. before
sowing.
Seedling Dip: Mix 100 ml. of ABTEC Azospirillum in 20 litres of water. Dip the root
system

of

seedling

for

20

min.

in

the

solution

before

transplanting.

Soil Application: Mix 5 ml. of ABTEC Azospirillum with 1 kg. Organic manure and apply
at the base. For main field/ nursery application, (1 acre) mix 1 litre of ABTEC Azospirillum
with 200 kg. Organic manure and broadcast when the soil is just wet. For potted plants also
ABTEC Azospirillum is very effective.

MODE OF ACTION:
It is an associative N-fixing bacterium which colonizes on the root surface as well as
internal cortical tissues of the roots.

BENEFITS OF ABTEC AZOSPIRILLUM


1. Better crop growth and seedling establishment

26

CHAPTER-5
ORGANIZATION STRUCTURE

5.1 ORGANIZATION CHART

Board of
directors
Managing
Directors
Finance
Manager
Syste
m
officer
Senior
Accounta
nt

Productio
n
Manager
Scientist
Assistan
t
Operator

Quality
control
manager

Utility
maintenance
engineer

Head
scientist

Marketing
manager
Area
sales
officer
Sales
executiv
e

Personnel &
administrati
ve manager
Systems
officer

27

Electrical
foreman
Office
Assistan
t

Cashie
r

Micro
Biologis
t

Office
Assistants

Research
Assistant

Utility
maintenanc
e operator

CHAPTER 6
DEPARTMENT ANALYSIS

28

Every organization is the unified whole of many activities. In other words, any project is
organized by dividing the work to be done for the attainment of the organizational goals and
grouping them on some logical basis like homogeneity to form various functional units for
the purpose of administration. The administrative units so formed are called departments.
The agro bio has also organized its activities into 5 different departments which are:
1.)
2.)
3.)
4.)
5.)

Finance department
Quality control and procurement department
Production department
Marketing department
Personnel & administration department

6.1 FINANCE DEPARTMENT


Finance department is an indispensable part of individual as well as instillations. It is the life
blood of every business concern. Financial informations are needed to predict compare and
evaluate a firms earning capacity. It is required for economic decision making, investment

29

and financial decision making. The success of a firm depends on a sound capital structure and
proper use of capital. It is an important function of any business concern.

FUNCTIONS OF FINANCE DEPARTMENT


1.
2.
3.
4.
5.
6.
7.
8.

Acquiring sufficient funds.


Proper utilization of funds.
Increasing profitability
Maximising firms value
Determining financial needs
Analyses of cost volume and profit
Managing capital budgeting
Profit planning and control.
This department take care of the various financial transactions of ABTEC, thus acting
as the lifeline of the organization. The department is headed by a finance manager.
The finance department is divided into two sections. System officer section and senior
accountant section. System officer section is managed by the senior accountant.
Senior accountant section is divided into two types-office assistant and cashier.

STRUCTURE OF FINANCE DEPARTMENT (fig no. 5.1)


Manager
(finance)

System officer

Office assistant

Senior
Accountant

Cashier

30

The department has one function other than financial accounting that is internal auditing.
INTERNAL AUDIT
This sections work with the team auditors. They are responsible for the internal auditing
procedure of the company.
ACCOUNTING POLICIES
1)Basis of accounting
Financial statement is prepared under the historical cost convention basis.
2.) FIXED ASSETS
Fixed assets are stated at their cost and less accumulated depreciation. Depreciation of fixed
assets is transferred to deferred grant account every year.
MAIN BOOK LISTS
The company accounts are kept and maintained as per the company act 1956 and according
to accounting practices. The company also has been maintaining cost accounting and
budgeting.
The main book lists are:
1.
2.
3.
4.
5.

Cash book
Bank book
Creditors ledger
Debtors ledger
General ledgers

31

6.2 QUALITY CONTROL AND PROCUREMENT DEPARTMENT


Quality refers to the sum of attributes or properties that describe a product. These are
generally expressed in terms of specific products characteristics such as length, width, colour
and the like. Quality control is an effective system for integrating quality development,
quality maintenance and quality improvement efforts of various groups in an organization, so
as to enable production of goods and services at the most economic level which allows full
customer satisfaction. The need for quality needs no special emphasis. One benefit of quality
is increased productivity. Better quality means reduced cost for repairs, instruction, scrap and
rework and product warranties. Increased productivity results in better profits and builds
customer loyalty. Quality also results in sustained profits.
Their result lab is well equipped with all modern amenities necessary for quality control.
They give topmost priority to quality products. Quality tests are frequently done in their own
laboratory for every batch of the products. Their products are often subjected to stringent
quality test in agricultural universities and ICAR laboratories also. The scientist of Kerala
agricultural universities and officers of agricultural department also make surprise visit to
their laboratory to draw random samples for quality check. Quality tests like c.f.u/g,
stationery techniques, microscopic observation, optical density test etc are done immediately
after fermentation before mixing with suitable carriers. The carriers like lignite and talc are
neutralized with calcium carbonate and sterilized before mixing to get the highest quality
products. After mixing also quality test are made at random.

Functions of Quality control Department


The department by means of companies on line analysis system managed by well qualified
professionals, all quality parameters during production is constantly monitored to ensure that
the final product is produced with desired quality; the products are strictly inspected to meet
international QC norms.
32

STRUCTURE OF QUALITY CONTROL AND PROCUREMENT DEPARTMENT


The quality control department has quality control manager at the top. Research head scientist
is responsible for all the quality measurement activities of the organization. The scientist has
microbiologists under them

Quality control manager

Head
scientist

Microbiologists

Research assistant

Fig no. 5.2

Quality Initiative
Agro bio- tech research centre ltd, the manufacturer and distributors of bio- fertilizers and bio
pesticides, suitable for sustainable and organic agricultural in the country. They produce
different

bio

fertilizers

with

viz.

Rhizobium,

Azospirillum,

Azotobacter,

Phosphobacteria,V.A.Mycorrhiza Bio-potash and bio control agents like Trichoderma sp.,


Pseudomonos, fluorescence, Beauveria bassiana,Verticillium lecanii, Paecilomyces lilacinus,
Metarhizium anisopliae, Nomuraea relay and organic manures like Bio-organic manure,
super organic manure, super meal, meal organic plus etc. Under the trade name ABTEC.

Research and development


33

ABTEC has got a well-developed microbiology lab under the research head team. Their R&D
wing is involved in developing many more products, which will soon hit the market.
The source of culture are international crop Research institute (ICRISAT), regional
centre of organic farming, and project directorate of bio control, Indian institute of spices
research (IISR), Kerala agricultural university (KAU) and Tamilnadu agriculture
university(TNAU).
Product procurement
The sources of culture are Kerala agricultural university, Indian institute of spices research,
regional centre of organic farming Bangalore, T.N.A.U Tamilnadu agricultural university,
project directorate of bio-control agents Bangalore, ICRISAT Hyderabad etc. In addition they
have developed their own cultures also.

34

6.3 PRODUCTION DEPARTMENT


Production can be defined as the processes and methods employed in the
transformation of tangible inputs (raw material, semi-finished goods, or sub-assemblies) and
intangible inputs (ideas, information) into goods or services.
The production department is the nucleus of every organization engaged in conversion of raw
materials into finished goods. The production departmental function varies with production
capacity in modern times.
Functions of production department
Production manager is the highest authority in this department. The Research scientist
comes under him. Production manager is the overall in charge of all the production activities.
The assistants and operator comes under him. The scientist and the researchers are
responsible for the production of microbial culture. The assistants and operator will be
responsible for the mixing up of the raw materials. The utilities and maintenance engineer has
Electrical foreman (EF) and utilities and maintenance Technician (U/MT) comes under
production manager. Electrical foreman has the responsibilities to ensure that the electrical
requirement of the company is taken care of. The utilities and maintenance technician is
responsible for periodical maintenance of the machines and equipment of the organization.

35

STRUCTURE OF PRODUCTION DEPARTMENT(fig no. 5.3)


Manager (production)

Scientist

Assistants

Operator

Utilities and maintenance


Engineer

Electrical foreman

Utilities and
maintenance operator

36

TECHNOLOGY
Reap Rich from Eco- friendly soilTechnology used for the manufacturing the
product is superior and most suited for the climatic and geographical condition. They collect
efficient mother cultures of different bio- fertilizers and bio- pesticides from different
agriculture universities and ICAR institutes who are actively doing research in this field.
They also get cultures from Kerala agricultural university, Tamilnadu Agricultural University
Coimbatore, Indian institute of spices Research Calicut and regional centre of organic
farming, Bangalore. The cultures are then mass multiplied by using specific media in
fomenters. Such cultures are then mixed with suitable carries. This ready to use products are
then packed and marketed. They have all the modern equipment necessary for manufacturing
and for determining the quality of bio- fertilizers and bio- pesticides. They also have a well
experienced team involved in R&D and field experiments.

37

Table no. 5.1 Details of raw materials used, products manufactured during 2008-09,
2009-10, 2010-11 (Sources: Annual reports 2008, 09, 10,11)
Particulars
Bio- fertilizers
40kg N
40 kg P
50kg K
B control Agents
90 kg
Trichoderma
70 KG
75kg Verticilium
Pseudomonas
Bio-pesticides
75 kg Beaveria
Organic Manure
10 kg Bio-organus
10.4 Kg Super Meal
15 kg Neem Cake

2008-09

2009-10

2010-11

80 TON
60 TON
25 TON

110 TON
80 TON
40 TON

240 TON
120 TON
60 TON

150 TON

190 TON

230 TON

150 TON
20 TON

190 TON
30 TON

230 TON
45 TON

20 TON

30 TON

45 TON

300 TON
700 TON
300 TON

400 TON
1000 TON
400 TON

500 TON
1400 TON
500 TON

PRODUCTION LAYOUT

Microbial Culturing

Quality Checking

38

Autoclave

Mixing

Quality checking

Packing

Fig no. 5.4

6.4 MARKETING DEPARTMENT


Marketing is the process of finding out customer needs and serving those needs
profitably. According to Philip Kotler marketing is a social and managerial process by which
individuals and groups obtain what they needs and want, through creating and exchanging

39

products and values with others. Modern concept of marketing is customer- oriented.
Modern marketing starts with customers and ends with the customer.
Marketing is a continuous process. It is the movement of product and services from
the product to the user. Marketing function are not limited to the function of buying and
selling but they includes all function necessary to satisfy the customer such as financing,
storage, risk bearing and after sales services etc. marketing process is a vital connecting link
between the producer and the customer.
The task of marketing systems is to adjust the production of goods of services
according to the needs of customers. Broadly speaking, marketing functions comprise two
processes concentration and dispersal. The process of concentration consists of gathering and
putting together into larger quantities of raw material or finished goods from market place to
the ultimate consumer.
The marketing department is a customer orientation backed by integrated marketing aimed at
generating customer satisfaction as the key to satisfying organizational goals.

Structure of Marketing Department


Marketing Manager

Area Sales
Officer

Sales Executive

Fig no. 5.5


Functions of marketing manager

40

The main function of marketing manager is to manage the business in order to produce and
sell according to the tastes and needs of the customer at a reasonable price. He is the
responsible person for looking after the sales of each product. He has to give adequate
information about trends in the market and coordinating the market activities of the
organization. Periodic survey, sales evaluation, implementing new business and marketing
strategies are all the function of the marketing manager in the organization.
Function of sales executives
According to the information from the marketing manager, sales executives have to perform
their job well. The sales executives are appointed in the field of marketing and to perform
their jobs in Kerala market only. Each sector is allotted to sales executives, whose
responsibilities and upgrading sales, and also appointing new distributors, motivating existing
distributors in the field.
Function of area sales officers
This person has to perform his activities outside Kerala. He is appointed to carry out sales in
other states. The responsibilities are appointing new stockiest for each states or each city
discovering new markets etc.
Sales and distribution system
The cost involved and nature of the products often influence the selection of a channel.
ABTEC has direct distribution system within an around the states, for each area ABTEC has
selected distributors and by this distributors the product are sent to the retail outlet from their
consumers have the chance to buy the product.
The regional exporting agencies are engaged in exporting the products (both bulk and bagged
cargo), shipment through Cochin port by the seller.

41

Table no. 5.2 Details of the products sold by the company on 3 consecutive years: 200809, 2009-10 and 2010-11.

Particulars

2008-09

2009-10

2010-11

ABTEC

150ton

200ton

250ton

160ton

190ton

240ton

150ton

200ton

250ton

300ton

400ton

500ton

ABTEC Tricho

150ton

180ton

230ton

ABTEC Beauvaria

20ton

50ton

90ton

ABTEC

20ton

50ton

90ton

ABTEC Hirtsutella

35ton

45ton

60ton

ABTEC Bacillus

200ton

240ton

285ton

Paecilomyces

25ton

45ton

80ton

ABTEC Peseudo

150ton

175ton

210ton

Azospirillum
ABTEC
Azotobacter
ABTEC Phospho
Bacterium
ABTEC
Bio-potash

Verticillium

ABTEC

Sources: Annual reports 2008, 09,10,11

The Distribution channel used in Kerala

42

Producer

Distributor

Retailer

Consumer

Fig no. 5.6

The Distribution Channel used Out-side Kerala

43

Producer

Agent

Wholesaler

Retailer

Consumer

Fig no. 5.7

Advertising
Advertising is a form of communication used in helping sell products and services.
Typically it communicates a message including the name of the product or services and how
that product or services could potential benefit the customer. However advertising does

44

typically attempt to persuade potential customers to purchase or to consume more of a


particular brand of a product or services. Modern advertising developed with rise of mass
production in the late 19th and early 20th centuries.
Advertising strategy of ABTEC is mainly on mass media advertisements. At the time of
launching the products the company employed, newspaper and magazine advertisements.
Further in main cities of Kerala field signs and pointed display were employed.

Price lists of ABTEC product


ABTEC Phosphor bacterium =40rs
ABTEC Bio-potash =40rs
ABTEC Tricho =40rs
ABTEC Beauvaria =40rs
ABTEC Azosprillum =40rs
Verticilium =40rs
ABTEC Pseudo =40rs
Bio organics =40rs
Super meal =40rs
Neem cake =40rs

6.5 PERSONNEL AND ADMINISTRATION DEPARTMENT


This department deals with the human resources of ABTEC. Human resources is the
most important asset and is of paramount importance for the success of the organization. It is
the source of strength and aid. For an organization, to survive and prosper, it must be able to
45

identify, select, develop and retain qualified personnel. Hence every company occupies a
place of prime importance.
Function of personnel department
1.
2.
3.
4.
5.

Making better industrial relation


Developing organizational commitments
Copying with changing environment
Change in political philosophy
Increased pressure on employees.
Personnel department with the help of various department supervisors and heads are
responsible for the execution of policies regarding the recruitment, discharge,
qualification of employee and wages, which have been laid down by board of
directors.
The company consists of 40 permanent staff and there are some 100 or more
who work on daily as per the companys requirement basis. In ABTEC, personnel
department function is carried on by the administration manager. Every employee
who join the company for the first time has to undergo probation period for one year.
The normal office working hours are from 8.30 am to 5.30 pm.

Structure of personnel & Administration Department

Manager (Personnel & Administrator)

System Officers

Office
Fig Assistant
no. 5.8
46

The main function of personnel department is to recruit the staffs and workers, train them and
place them to jobs they are best fitted. Whenever a new candidate is appointed a copy of the
appointment letter containing all terms and condition of the employment must be sent to
1. Time office for recording the attendance
2. Payroll department for making enrolment in the payroll
One copy the employment letter is kept by the personnel department for maintaining the
employees history card.
Employee's History Card
In ABTEC, the personnel department keeps a full record for every worker employed
in the organization. The record is kept on card known as Employee History Card. This card
includes the following.

Table no. 5.3


Date of joining
Name
Sex
Department
Designation
Grade
Starting pay
Permanent Address
Phone number
Date of Birth
Educational Qualification
Marital Status

Recruitment

47

Recruitment is the process of searching for the proper the proper candidates and
stimulating them to apply for jobs in the organization. Each employee who joinsthe company
has to undergo probation period for one year. The employee will be under observation during
this period. If director board is satisfied with the performance he will be made permanent.
The following are the sources of recruitment.
1. Word of Mouth
2. Advertisement in Newspaper
I. Selection
The selection procedure adopted by ABTEC is as follows
1. Scrutiny of Application
The personnel department will first scrutinize all the applications received in order to take
out the applications which do not fulfil the post. Only those applications will be taken which
are fulfilling the recruitment of the post.
2. Blank Application Form
The blank application form is the best device for getting written information about the
candidate in her own handwriting. The application form contains information like name,
place of birth, date of birth, marital status, qualifications, experience etc.
3. Interview
In ABTEC, group interview is the most common. In this interview a number of candidates
face the interview board together. They are given a topic to discuss when the candidates
responds and give reasons and counter reasons their ability to communicate, presence of
mind, expressions etc are judged by the interviews.
4. Reference
References are conducted on those candidates who are found suitable for tests and interviews.
Reference can be collected from previous employers.
II Training
The training methods adopted by ABTEC are as follows.
48

1) On Job Training
Under this method the trainee is given training in real working conditions under the
supervision of a qualified trainer.
2) Apprenticeship Training
Young persons deriving to learn technical job are trained under this method. This training is
usually arranged for periods from two to six months .The trainee is paid nominal wags known
as stipend during the period of training.
3) Induction and Orientation Training
The newly appointed candidate is given an induction and orientation training. Since they are
new and are not familiar with the organization audits rules and regulations, this training is
organized to make them familiar with the various aspects of the organization such as the
authority responsibility relationship, delegation of authority etc.

Performance Appraisal
Performance Appraisal is a method of evaluating and appraising the performance of a person
in doing a particular job. This helps to bring about the area of the areas of efficiency and
deficiency in a person. In other words it helps to identify the strengths and weakness of a
person. In ABTEC the following Performance Appraisal method is used.
1. Rating Method
Under this method certain grades are set like 'A' grade stands for outstanding. 'B', good, 'D'good, 'D'-satisfactory, 'E'- unsatisfactory. Secondary traits are set like job knowledge,
initiative, communication skill, leadership, self-disciplines etc. On the basis of the following
grades are awarded.
2. Free Essay Method
Under this method the head of department will assess the rates and give a brief description
about him to the personnel dept. The head of the department has to file a report about the
employee based on his assessment; the report should reveal the performance of the areas to
be covered is production capacity, leadership qualities, dependability, disciplines etc.
49

Time Keeping Department


This department is concerned with the recording of time each workers engaged in the
organization for the purpose of attendance and wage calculation.
Method of Time Keeping

Attendance Register Method

Compensation
In ABTEC EMPLOYEES are paid compensations which comprise of monetary benefits,
fringe benefits etc.
a) Monetary Benefits

Basic salary

Dearness allowances

Employees contribution to provident fund

Employees contribution to ESI scheme

Production bonus

b) Fringe Benefits

Subsidized food

Recreational facilities

Concessional medical facilitates

Welfare Activities in ABTEC


ABTEC provides all the statutory measures as per the Factories Act 1948 and such other
legislature, to the employees
Statutory welfare measures

50

a.) Security measures


The factory and its surroundings are looked after by Kerala industrial security force.
b.) Lunch room
Lunch room is provided to the employees who bring their own lunch packets.
c.) Drinking water
The company has installed sufficient number of water coolers. They are placed in different
places in usage. The employees get pure and fresh drinking water during the working hours.
d.) Medical benefits
All employees are covered under the employees state insurance scheme (ESI) and are
entitled to medical facilities as per the law.
e.) Provident fund
The employees in this establishment get the benefit of provident fund.
f.) Urinals & latrines
Sufficient number of urinals & latrines are provided to the employees. There are separate
urinals & latrines for male and female employees.
g.) Allowances
Employees who go out of the head quarters for official duty are eligible to get travelling
allowances and other daily allowances.
Overtime allowances
Overtime is the work done beyond the normal work period. In India the factories Act
provides for payment of overtime wages at double the usual rate of wages. Most of the
workers are interested in overtime duty.

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CHAPTER- 7
SWOT ANALYSIS

52

SWOT ANALYSIS
SWOT ANALYSIS is a strategic planning method used to evaluate the Strengths, Weakness,
Opportunity and threats involved in a project or a detailed snapshot of a companys health. It
involves specifying the objective of the business venture or project and identifying the
internal and external factors that are favourable and unfavourable to achieve that objective.
The technique is credited to Albert Humphrey, who led a conventional at Stanford University
in the year 1960s and 1970s using the data fortune 500 companies.
SWOT analysis results of the company are as follows:

PORTERS FIVE FORCE MODEL

The original competitive forces model, as proposed by Michel porter, identifies 5 forces

53

which would impact on organizations behaviour in a competitive market. These include the
following:

The rivalry between existing sellers in the market.

The power exerted by the customers in the market.

The impact of the suppliers on the sellers.

The potential threat of new sellers entering the market.

The threat of substitute products becoming available in the market.

Understanding the nature of each of these forces gives organizations the necessary insights
to enable them to formulate the appropriate strategies to be successful in their market.
Porters five Force Model for ABTEC:1. Threats of new entry :
Production cost is less in ABTEC, so it attains economics of scale, so the threats from
new entries are less.
It has the capacity to retaliate when a new firm enters into the industry. The products
are undifferentiated; the customers cannot easily distinguish ABTEC products from
the competitors. So the threat from new entries is present in the case of ABTEC.
The capital required in the initial phase is high because plant and machinery is
expensive; hence it acts as an entry barrier of new firms. Raw materials are easily
available so it is not a problem for ABTEC.ABTEC is experienced in the industry, so
it can access raw material easily. So the threat of new entry is low in ABTEC.
2. Bargaining power of supplies :
As the organisation is concentrated on suppliers, bargaining power of suppliers is
high.

54

For ABTEC products there are substitute product. The customers of suppliers are not
fragmented; hence their bargaining power is high.
The switching cost from one supplier to another is high. The integration of the
supplier is not reliable in the organisation. In short, the bargaining power of the
suppliers of the organisation is high.
3. Bargaining power of buyers :
The buyers are concentrated on buying the product from the organisation itself as it is
a monopoly organisation. The products manufactured by the organisation are uniform
and not differentiate. The bargaining power of the buyers is high due to low switching
cost.
As the buyers are price sensitive, their bargaining power will be high. The customers
integration is high on this product. As the customers are aware of the production cost
their bargaining power will be higher.
In short, by considering all the above factors, we can say that the bargaining power of
the buyer is high.
4. Threat of substitutes :
A product like ABTEC Pseudo cannot be substituted for any of the customers of
ABTEC. So there is no threat of substitute due to the customers loyalty to this
particular brand.
5. Competitive rivalry :
Uniformity of the product is maintained, so it is not differentiated. The market rate is
reliable hence; ABTEC is not facing competitive rivalry in the market.
7.1 STENGTHS

Sound management system.


The company is producing eco friendly product which are very safe to human being.
Attractive location.
A well experienced team involved in R&D and field experiments.

55

Getting government support.


Getting grants from ministry of agriculture and co-operation, government of India.
Good working environment.
Raw materials are locally available.
Good employer-employee relationship.
Ensuring good product quality.(ISO certified)
Better co-ordination among superiors and subordinates.
They have developed their own microbial culture.
The sources of culture are from Kerala Agriculture University, Indian institute of
spices research, regional centre of organic farming Bangalore, T.N.A.U Tamilnadu
Agriculture University, project director of bio control agent Bangalore, ICRISAT

Hyderabad etc.
The first private sector organization in Kerala to sign technology transfer contract
with ICRISAT (international crop research institute), and the international agriculture

research wing of the UN.


Technology used for manufacturing our product is superior and most suited for our

climatic and geographic condition.


Having a well built up distribution network.

7.2 WEAKNESS

Lack of well qualified microbiologist.


Infrastructure is not supportive.
High rate of absenteeism.
Website is not updated regularly.

7.3 OPPORTUNITY

Continuous use of chemical fertilizer alters the physical, chemical and biological
properties of the soil and makes the soil dead. A remedy to this problem is to use

of different bio fertilizer along with a lot organic manure.


They are receiving repeated order and appreciation letter from the farmer as they

have got good response on the growth of their crop.


Appreciations from the farmers who use their products and the feedback from the
field through their sales officers have motivated them to do further research in the

56

field of agriculture and thus increase their product range and production

capability.
The pesticides residues in food also lead to various diseases like cancer. The only
solution that they are putting forward to protect the universe and our upcoming

generation is nothing but to promote organic farming.


Bio-fertilizer and bio-control agents can play integral part in performing organic

farming in its real sense.


By supplying quality products, they can create a net work of satisfied farmers

throughout in India.
They started a mobile agro clinic for the farmers, from where they will get free

services of well experienced scientists.


Opportunity to expand sales in metro cities and other states and 95% need to be
tapped.

7.4 THREATS

Technical changes
Growth of competitors
Lack of awareness among the farmers
No proper government regulation for quality checking
New entries in the global market
Non availability of skilled labour

57

CHAPTER- 8
FINDINGS, SUGGESTIONS
&
CONCLUSIONS

58

7.1 FINDINGS

According to the study conducted in agro bio tech research centre ltd, the researcher has
reached the following finding, suggestion and conclusion

Agro bio tech research centre ltd, are the pioneers in the manufacture if bio fertilizer

and bio pesticides in the state of Kerala


Their bio control agent ABTEC TRICHO (trichoderma spp) is the only one in Kerala

to get CIB registration


They are producing the product under the name , under the trade name ABTEC
They were getting appreciation from the farmer who use their products
The bio inputs are manufactured fully in air conditioned laboratory under the
technical guidance and supervision of expert senior agricultural scientists using

modern bio technological methods


All the products are subjected to strict quality check in all stages of production
Technology used or manufacturing product is superior and most suited for climatic

and geographic condition


The organization is growing day by day. The financial records for the four consecutive

years reveals that profit is increasing each year for company


The operating efficiency of the firm results in optimum utilization of recourses at

minimum cost
Absence of trade union
The company doesnt have separate distribution channel
The company is only concentrate at the local and regional market field
They started a mobile agro clinic for the farmers to get more and free services of well

experienced scientists
The agro bio tech research centre ltd, offers price guarantee, and it allow ensuring the
stability of supply

7.2 SUGGESTIONS

59

The company should concentrate in the national and international market and has to

expand the market and sales


The company should pay attention towards the marketing department
If responsibility increases at the top level, efficiency will automatically come to the other

management level
The tenure of board of directors and managing directors should be increased from one to

three or five years


They must concentrate on agro shops from where people could get the eco friendly and

healthy product and they should promote those product


They should start showroom in different places
They should concentrate on marketing strategies
They should reduce environmental pollution caused by the production process
They should adopt some eco friendly techniques and processes
They have to make better relationship with distributor by providing them with benefits.

7.3 CONCLUSION
The organizational study was conducted in ABTEC. It was a real learning experience in
all aspects. The researcher had got whole hearted co-operation from everyone with whom
he interacted. The study helps the researcher to acquire a lot of practical knowledge about
the day to day functioning of an organization. It also helps researcher to develop some
soft skill as a management trainee. With the present scenario, the company should
concentrate more on advanced technologies in order to become a global leader. The
project study describes the structure and functioning of the organization as satisfactorily
as possible.

60

BIBLIOGRAPHY

BIBLIOGRAPHY
Aswathappa K Human Resources and personnel Management (2002) Tata McGraw- hill
publishing company ltd, New Delhi 3rd edition
Kothari C.R Research methodology and techniques,(2004) new age international publishers
4th edition

Kotler Philip marketing management (2002)- prentice hall of media pvt ltd 11th edition
Pandey M finance management (2000) vikas publication house pvt ltd.

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WEBSITES
http://en.wikipedia.org/wiki/methodology
www.abtecbiofert.com
http://www.gwu.edu/~litrev/a06.html
http://www.businessdictionary.com/definition/production.html

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