CHAPTER 1

1.1GENERAL INTRODUCTION

An organizational study is the systematic study about how people -as individuals and
as groups - act within organizations. It involves the study of the structure and
functioning of its departments. Organizing is one of the important functions of
management. Almost all the organizations are different but they have certain common
features. All are collection of people, linked together by formal and informal
relationships. They have hierarchical orders that are engaged in co-operative activities
and they all have identical boundaries. So the study of people in organization is
important for future managers.

Structure of an organization is very important for its functioning and growth. It

provides the basic frame work for its progress and expansion. For future managers, it
is imperative to study the organizational structure and functioning of successful
organizations so that they as future managers may guide organizations towards
success and profitable functioning.

1.2 SCOPE OF THE STUDY

The organization study at Rani Rice Industries aims at getting accustomed to the
business environment of Rani Rice Industries for a period of one month. The study
will be conducted to understand the structure, function and process of various
departments and their interdependence.

1.3 OBJECTIVE OF THE STUDY

The organizational study was carried out in Rani Group Of Companies, situated at
Kottayam Arpookara, is to achieve the following specific objectives;
To relate theory with practice
To know about the functions that carried out in different departments
To learn the way how the management tries to coordinate activities of the
different departments in the organization
To analyze, strength, weakness, opportunities and threats of the company
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1.4 REASON FOR SELECTING THE COMPANY
The reason for selecting the rani rice company is that, they are the emerging rice
brand in Kerala . The industry contains all the major areas of study. The different
departments are well established in the organization. This organization study helps to
familiarize with structure, production and functioning of the organization. To know
the merits and demerits of a large scale industry. To

1.6 LIMITATION OF THE STUDY

There were difficulties in obtaining data from executives and managers due to the
busy work schedule.
An in-depth study of the company could not be carried out due to the
shortage of time.
The reliability of data used for study is largely depends upon the
companies reports and the information given by executives.
The company has the limitation to disclose their financial details, so a
detailed analysis of financial performance of the company is not
possible.

1.8 STUDY PLAN

First week

First week got permission to do the internship training in the company. Also get the
general idea about the structure of the company.

Second week

Second week collected details regarding the production of the goods and the details
regarding purchase of purchase of raw materials.

Third week

In the third week visited plant and got an idea about the functioning of the production
department, also collected details regarding the sales department, quality control department,
research and development department and human resource department.

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Fourth week

In the fourth week collected details from the finance department, and the balance sheet
figures.

1.9 CHAPTER SCHEME

Chapter I: - It contains the introduction, Scope of the study, Objective of the study,
Reason for selecting the company, Study plan, Methodology, Limitation of the study.
Chapter II: - It contains the details regarding Industry profile, World scenario, Indian
scenario, State scenario
Chapter III: - It includes Company Profile, Objectives of the Company, History &
philosophy, Organization structure, Different Phases of Development, Future Plans &
Procedures, Financial performance of the company.
Chapter IV: - This chapter deals with Departmental Details of Finance Department,
Human Resource Department, Marketing Department, Production / Operations
Department and it includes structure of each department, functions of each
department, Responsibility of key personnel and Future plans of each department.
Chapter V: It includes SWOT Analysis, Observations and Suggestions.
Chapter VI: This chapter contains the conclusion.

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 CHAPTER 2
INDUSTRY PROFILE

4
 2.1 INDUSTRY PROFILE
Food is an essential part of our lives. Usually, the food industry comprises of a
complex network of activities pertaining to the supply, consumption, and catering of
food products and services across the world. Rice is a stable food for more than half
of the worlds population. Rice is believed to be first cultivated crop in the world.
Asia dominates in rice production accounting for 90 percent of the total worlds
production in the world. It Is the largest cereal produced in the world after corn.
Historical evidence shows that rice was originated either in southern parts of India or
in the parts of India and Burma. It is also being cultivated in china since ancient
times. China is the largest producer of rice in the world. The region of India, Burma,
Thailand, and Cambodia is the centre for many wild rice varieties. Rice is very
popular in Asian countries and in some other countries. It is a part of daily meal. It is
main ingredient of hundreds of dishes worldwide. Rice is main ingredient of many
soups, and dishes with fish, poultry, and meat. Rice grows on lands where there is
plenty of water and excess of rainfall. It cannot grow in waterlogged areas, while it
can also survive floods. It requires more than 20 degree Celsius temperature to grow.
It is cultivated large scale as annual crop. It is estimated to that world is producing
around 740 million tons of rice every year and china is leading producer country with
around 205 million tons production every year. Rice grains are obtained from crop
though threshing and milling process right after completing harvesting process.
The list of top rice producing countries in the world in 2015
Rank Country Production
(million metric tons)
1. China 207.675

2. India 155.682

3. Indonesia 70.593
4. Vietnam 44.503
5. Thailand 37.254
6. Bangladesh 34.683
7. Burma 34.250
8. Philippines 19.832
9. Brazil 14.682

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10. Japan 11.573

2.2WORLD SCENARIO
Rice is the second largest produced cereal in the world. At the beginning of the 1990s,
annual production was around 350 million tons and by the end of the century it had
reached 410 million tons. Production is geographically concentrated in western and
eastern Asia. Asia is the biggest rice producer, accounting for 90% of the worlds
production and consumption of rice. China and India, which account for more than
one-third of global population supply over half of the worlds rice. Brazil is the most
important non-Asian producer followed by the United States. Italy ranks first in
Europe.

Rice is by far the most economically important food crop in many developing
countries, providing two third of calorie intake of more than 3 billion people in Asia,
and one third of the caloric intake of nearly 1.5 billion people in North America and
European Union (EU), rice consumption has increased due to food diversification and
immigration. In the last two decades (1970-90), the per capita rice consumption
increased at various rates, ranging from 2.4 percent/year in the Italy and 8.2
percent/year in UK (Faure and Mazaud , 1996).

The worlds major rice-producing countries including the two most popular nations,
china-India have emphasized the important of continuing to develop new rice
varieties to guarantee Asias food security and support the regions economic
development. Today ice is grown and harvested on every continent expect Antarctica,
where conditions makes its growth impossible.

2.2.1 Some important facts in global scenario

Global rice production in the recent years has fluctuated between 375-400
million tons.
Global ending stocks, which had average above 120 million tons I the 1990s
is getting reduced to 80 million tons.
Asia is the biggest rice producer, accounting for 90% of the worlds
production and consumption of rice.

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 Per capita rice consumption has declined in recent years in many of the
wealthier rice consuming countries, such as Japan, Republic of Korea, and
Thailand, because of rising incomes have enabled people to eat more varied
diet.
Major importing nations of rice are west Asian countries and African
countries. Apart from it countries like Japan, Malaysia, and Brazil also figures
in top 10 importing country. In west Asia and Middle East basmati rice is
favorite and India is the major supplier in this category.
Major rice exporters are Thailand, united states, Pakistan, Vietnam, India,
Italy , Uruguay, Australia, china and Argentina.
The western countries are not major producers , but at the same time their
consumption is negligible. Thus, a significant portion of their produce is
exported.

2.3 INDIAN SCENARIO

Agriculture is the main source of income of families in india. Farms cover half the
land and almost three-quarters of that land is used to grow the two major grains: rice
and wheat. India is the second largest producer of rice in the entire world, preceded
only by china. Indias annual rice production is around 85-90 million tons and the
annual consumption is around 85 million tons. In India, rice is cultivated in both
seasons; winter and summer. West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab,
Tamil nadu, Bihar, Orissa, Assam, Karnataka, and Haryana are the major producing
states. More than 50% of total production comes from the first four states. India is the
worlds largest exporter of basmati rice to Saudi Arabia and other middle east
countries, Europe and united states. India has the potential to export one million tons
of basmati rice. Major destinations for other Indian varieties of rice(non-basmati,
white\parboiled rice etc)are Bangladesh, Indonesia, Philippines, Nigeria, south Africa,
ivory coast and other African counties

1.10 STATE SCENARIO

Paddy is cultivated in almost all districts in Kerala. Rice production
has experienced continuous decline in area over 2 decades, rice
production touched its of around 14lakh tons in the middle seventies.

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Even at its peak level internal production was hardly sufficient to meet
50 per cent of states requirement. Consequent to the enormous
pressure which high value crops like coconut, banana, pineapple, and
rubber have exerted area under paddy has declined from its peak
coverage of 8.81 lack hectares in mid-seventies to 3050 lack hectares
in 2003-2004.
The production of rice is declining every year. This is an indication of
the problems faced by the cultivators of kerala. If proper measures are
not been taken to overcome this situation, then this sector will be
abolished from the state within no time. The main problems
concerning these cultivators are high cost of cultivation and less return
for their products, the products from other states is also affecting them
adversely.
Season wise data shows that reduction in area under rice was entirely
during the mundakan season whereas during viruppu and puncha
season 2003-2004 the negative trends has been reversed, the data also
reveal that around 1.70lack hectares of double cropped area, nearly
50000 hectare, are remaining fallow during the viruppu season. The
single cropped lands of kuttanad and kole, where only one crop is
raised during puncha season, also offer scope of additional cropping.
Among the three seasons, puncha season records the highest
productivity and the trend is continuing.
In Kerala paddy production is highly concentrated in the districts of
Palakkad and Alappuzha. They are also known as rice bowls of Kerala.
These two districts contribute 40% of total production of rice in
Kerala. At present rice cultivators are facing so many problems. The
main problem is the increase in cost of production and less profit from
the product sale. So many farmers are changing their cultivation crop
into other agricultural products where they get high profit and some
people are utilizing the land for constructing buildings and tile
factories. All these practices are affecting the industry very adversely.
In kerala paddy processing industry is one of the traditional industries.
Earlier paddy processing was considered as household business. As
time passed, with increase in production and productivity of paddy,
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rice mills and modern lines began to flourish. With the introduction of
high yield variety crops, which in turn resulted in a massive increase in
productivity led to the emergence of middlemen in paddy business.

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 CHAPTER 2

COMPANY PROFILE

COMPANY PROFILE
Quality food at an affordable price this was the thought that
inspired Thomas Mathew Moonukandathil, a rice trader with decades
of experience in procuring and supplying paddy, to establish St.
Marys paddy processing in the year 1987. As a unit that supplied
quality rice grains at reasonable rates. St. Marys paddy processing

10
 grew steadily, with demand for their products day by day. In 1995, in
order to cater the rising demand, Thomas Mathew started JMJ modern
rice mills , the products of which were branded Rani. Again, in the
year 1995, St. Marys paddy processing was converted to a fully
mechanized unit, which increased the production to 150 tons a day.
Rani as a rice brand was growing phenomenally on the strength of its
unparalleled quality; and in 2002, the business was made a private
limited company: KE agro mills the group began exports in the year
2002 with its flagship product Rani Brand Rice. In 2005, rani group
took its first step to business diversification with two new
manufacturing units: stine food products & rani food products. These
units are engaged in manufacturing and marketing of high quality
processed food that include various varieties of rice, wheat, spices and
condiment products. The year 2008 saw rani group grow to the next
level with its new venture Geeyem Agro Mills at Perumbavoor, a
manufacturing facility with production capacity of 12 tons a day, using
latest technology and high-tech machinery. Today rani group ranks
among the top food manufactures of south India with an estimated
production of around 270 tons a day; and is growing steadily as a
brand, strengthened by its commitment quality and nurtured by the
goodwill of its customers.

VISION AND MISSION

Deliver the high quality food products that set themselves apart from others
in taste value . The rani group of companies has a great vision of becoming an leader of fast
Moving consumer goods and products. Its vision is to provide total customer satisfaction
Through continues improvement in production process and services.

PRODUCT PORTFOLIO

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Rani rice is reconvened manufacturer and trader of varieties of brown rice and white
rice in round gained and long grained varieties. All the raw materials collected are
sorted and graded with utmost care to ensure the consumers that they are using
genuine for healthy life.

FEATURES OF THE COMPANY

Advanced modern machineries will be installed by which the product will be
of supreme whiteness further machinery for supreme glazing also will be
introduced
Sortex technology by which entire rice is broken with the machinery is
introduced.
Since the machinery to be introduced are of high speed and efficiency the
processing time is reduced.
Modern machineries will have best performance of stone separation
Since complete automation being introduced in the plant , human intervention
in the production process is minimized and the end product will be completely
free from outside contamination.

CUSTOMERS AND COMPETITORS

Nirapara rice (K.K.R group of companies)
Okkal P.O
Kalady, Ernakulam.
Manjilas group of companies
Sasthri road
Nellikunnu, Thrissur.
Eastern condiments
Eastern valley
Adimaly, Idukki.

QUALITY ASSURANCE

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The products include 100% enriched natural flavors and support 100% quality
standards. All the raw materials are directly purchased from selected farmers
to ensure the raw materials are bio-fresh.

FUTURE PLANS
1) New technology
The rani group is all set to enter the food processing industry on a large
scale, bringing in the worlds largest technology and machines in every
new areas of activities. Attention to purity hygiene standards that meet the
highest world requirements is the focus of the group. The company also
plans to establish enterprise resource planning.

2) New products
The rani group is looking at new venture in food processing with a large
scale investment on a food technology park in over 12 acres of land
located in a pollution free, eco friendly, green area. Besides spices,
pickles, rice and wheat products, rani plans to bring up different food
supplements like health drinks and other vitamin food also. The group has
plans to manufacture an international product range like sauces,
squashes, fruit based foods, juices, ready to eat items, coconut based food
etc.

3) New market
Today rani group has entered into the Middle East markets and has set its
sights on market for 97 countries like America, Europe etc. now the
company has plans to enter into African markets and some Latin American
countries.

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 CHAPTER 3

METHODOLOGY

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3.1 METHODOLOGY
The success of research depends largely on the methodology used. The
appropriate methodology will improve the validity of the findings. The
following methodologies were adopted for the study.

3.1.1 Identification of the company

Rani rice industries, arpookara was selected for the organization study,
considering various factors including reputation of the firm, ease of getting
permissions , industry , location etc.

3.1.2 Identification of the objectives

The specific objectives of the organization study was identified and listed out
in order of priority. This helped in conducting the organization study in a
systematic and effective manner.

3.1.3 Data collection

Both primary sources and secondary sources were used in this particular
research

3.1.3.1 Primary data

Primary data were collected through observation, personal interview,
discussion with managers and employees of the various departments of
organization.

3.1.3.2 Secondary data

Secondary data were collected through literature review which includes
companies internal records, publications, journal, statutory report, website
(official and others) etc.

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3.1.4 Analysis and interpretation
The data collected must be properly analyzed to evaluate and enhance the data
quality. The analysis is done to identify the actual meaning of the data which
helps in proper interpretation. Data analysis involves working to uncover
patterns and trends in data sets and data interpretation involves explaining
those patterns and trends.

3.1.5 Documentation
After the analysis and interpretation of collected data, the information is
documented in the form of organization study report, which gives an elaborate
report on the organization study.

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 CHAPTER 4
DEPARTMENT DETAILS

17
DEPARTMENTS IN THE ORGANIZATION

1. Human Resource Department

2. Finance Department
3. Marketing Department
4. Production Department
5. Operations Department

4.1 Human Resource Department

The manager of the HR department is Mr. Selvin Mathew. There are two office staff
and one plant HR is working under him. Plant hr looks after the production side and
the others are assisting the manager HRD. HRD at Rani maintains the attendance card
and each worker should sign in the card before getting into work. One of the
specialties of the rani is, the inexistence of trade unions and the absence of leaves to
employees. Three month probation is fixed for each new employee and also one day
training and operation is offered to them. The office hours of rani are from 9 am
5.30 pm. The weigh bridge and cash office are available 24 hours. As a disciplinary
measures smoking and alcohol consumption is prohibited in the company. Direct
advertisement, screening and face to face interviews are conducted for recruitment.
Grievances are handled directly by the HRD and separate records are maintained for
the same.

Human resource department structure

Hr. manager

Plant Hr Asst.HR Asst.HR

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 Functions
To provide sufficient numbers of employment required for the company
To employ capable persons through recruitments
To give necessary trainings to the selected persons.
To take necessary steps to resolve grievances of employees
To ensure employee welfare

1. Human Resource Planning

Human resource planning is the process by which a management determines
how an organization should move from its current manpower position to its
desired manpower position. It helps the rani for anticipating and making
provision for the movement of people into, within, and out of an organization.
2. Job analysis
Job analysis is the process of studying and collecting information relating to
the operations and responsibilities of a specific job. In rani job analysis defines
and documents the duties, responsibilities and accountabilities of a job and the
conditions under the job are performed.
3. Job description and specification
Job description is written record of the duties, responsibilities and
requirements of a particular job. It tells what is to be done and how is to be
done in the organization. Job specification describes what the job demands of
employees-who do it and human factors that are required.
4. Job design
It is a conscious effort to organize tasks, duties and responsibilities into a unit
of work achieve a certain objective.
5. Recruitments
The recruitments of the employees are done directly by the company through
advertisements in newspapers and other media. The company provides
chances to existing and employees to suggest the names of persons for
recruitments.

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 6.Selection

Interviews are conducted for selecting the right people for the company.
Generally the interview board consists of the MD and respective department
heads. Tests also conducted to check the skill level of the candidates.

7.Training

Training is given to all employees as required. One day orientation

programme is given to the newly joined employees.

8.Health & safety

Cleanliness is maintained
Wastes and effluents are disposed properly
Proper ventilation and temperature is maintained
Masks are provided for protection against dusts
Cold water facilities are provided in summer and hot water in winter.
Proper lighting is maintained

9.Welfare measures

Company gives priority to the welfare of the employees. Some of the other
benefits granted to the employees are medical, employees state insurance
schemes, provident fund schemes, festival bonus, overtime benefits etc.
special allowances on occasions such as marriage, death etc are also provided.
6. Workers participation
Workers are the strength of the organization. The employees of the company
are classified into three categories.
Officers
Staff
Workers
7. Employee grievance
The hr department gives special care to solve problems of employees at its
initial stages itself. The company follows an open door policy on suggestions

20
 and compliances; management takes quick remedies for resolving the
problem.

8. Personnel records and audits

Personnel records are maintained for formulating and reviewing personnel
policies and procedures. Complete details about all employees are maintained
in personnel records, such as, name, Date of birth, marital status, academic
qualification, professional qualification, previous employment details, etc. it
helps to supply crucial information to managers regarding the employees. The
company will follow external audit.

4.2 FINANCE DEPARTMENT

Finance is defined as the provision of money at time when it is required. Finance

is needed for production of goods and services and their distribution. It is the
lifeblood of an enterprise.

The department is headed by AK Shymaprasad, the manager of finance department.

Mainly five accounting staff is working under this department. Promoters
contribution, friends and family together constitutes the capital structure of this
company. The main source of capital funds are from banks and unsecured loans from
individuals. Bank which give financial assistance to the company are axis bank. They
provide 3.75crore as working capital to the company, supported by the creditors and
the stock, in yearly basis. By the end of the year 2015 it was recorded as 150crores.
85% of the expenditure of the company is with purchasing of paddy.

Statutory audits are conducted in the company after every financial year. One external
auditor is permanently allocated for the company. Rajkumar Eruppackal & Co is the
permanently allocated auditing firm. Internal audit is performed daily by the internal
auditor. Funds are allocated to departments based on the basis of purchase bill.

Budgeting is done on the basis of seasonal purchase. The 3 main seasons are

February May
June September

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 October November

Benefits like ESI, EPF, FPF are given to employees. For this is the employer and the
employee will contribute 12% to this account.

The structure of the department is.

FINANCIAL
MANAGER

MA

ASST.MANAGER FINANCE OFFICER

INTERNAL
AUDITOR
SUPERVISOR ACCOUNTING
SALES OFFICER

Functions

Statuary compliance
Renewal of licenses
New licenses, TDS, tax calculation
Payments to contractors, salary, and consultants payments per month are
undertaken by finance department
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 To raise necessary funds for the smooth flow of production and other
activities.
Prepare budgets for every year.
Take control measures in order to check the accountants
Control over all matters relating to finance in the organization

Finance department is fully computerized and that enable fast recording, editing
and alteration of records. Finance mangers are expert in arranging necessary
working capital for the smooth flow of operation. The company is selling their
products both for cash and credit. The accounts and finance departments ensure
that the salaries to the employees are paid in time. The department is also
concerned with the preparation of budgetary control of the concern. The
departments ensure that all the entries are properly posted in the books of
accounts. Since business firms are profit seeking organization, there functions are
to maximize the companys wealth. The primary functions are:

1. Profit maximization
2. Maximization of returns
Other functions:

Obtaining finance

Internal audit

Cash management

Taxation

Management of accounting and control

Payment collection of all department

Preparation of financial report

Expense analysis

Determining the source of fund

Acquisition of funds

Funds management

Planning of resources

Effective use of resources

Controlling of resources

Banking relationship
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Responsibility of finance manager

Cash arrangement in a schedule wise.

Maintain credit for distributors.

Immediate draft and cheque are provided as per the requirements.

Day to day company expense is maintained.

Yearly return, sales return, auditing.

ISO auditing will be made in every six months.

A/C RECEIVABLE & PAYABLE

The company also have credit sales and purchase. They gives bills to their debtors
and receive bills from creditors for credit dealings. The bills are transferred to cash
within short period.

INVESTMENTS

The company invest in FDI last year on the basis of IRR.

SOURCES OF FUND

The main sources of fund from sales, and overdraft from bank

TAX PAYMENT

A separate department working under finance department called Tax Department.

Tax payment through e-filling in 15 th day of every month.

FRINGE BENEFITS GIVEN TO EMPLOYEES

GRATUITY

BONUS (11%)

PROVIDENT FUND (12%)

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 1. Financial Accounts

This branch deals with all types of cash payments and receipts. This will include
payment for engineering and raw materials purchase, petty cash payments, operations
and reconciliation of bank accounts, payment to the government in the form of taxes
and levies, payment of PF, deduction from salary and payment of loan outstanding
and insurance premium of employees, fright payments, payment in lieu of travel
allowance, medical reimbursement etc.. Cash receipts in the case of scrap sales and
any other receipt will also come under this branch of accounts.

2. Cost Accounts

This branch deals with forecasting, budgeting, analyzing and reporting the income
and expenditure of the company. The budget for expenditure for is prepared using
standard costing principles and it is compared with the actual expenditure. Any
variation from the budget is analyzed to find the exact reason and it is reported to the
top management.

3. Wages & Salary

Computation of wages and salary is done by this section of accounts department.

Wages of workmen are fixed in the long term agreement and are calculated on a daily
basis depending on various factors like grade, working hours, output achieved etc...

4.Sales Tax

All matters related to sales tax are handled by this section. Monthly returns for sales
tax are filled on behalf of sales depots. VAT (value added tax) system has been
introduced and all matters related to this are also looked after by this branch of
accounts. C forms for purchases from outside the stare and F forms are issued for
receipt of goods from depots.

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4.3 MARKETING DEPARTEMENT

Marketing department structure

MARKETING
MANAGER

SALES
CORDINATOR

SALESS
OFFICER

SALES
EXECUTIVES

Functions

1. Analysis of environment

Environmental analysis provides an early warning system for the forces which may
impact a companys products and markets in the future. With the help of
environmental analysis the company can act upon rather than react to opportunities
and threats.

2. Market Intelligence & Market Research

Marketing intelligence helps to analyzing and acquiring information in order to

understand the market to determine the current and future needs, preference, attitudes
and behavior of the market and to assess changes in the business environment that
may affect the size and nature of the market in the future. It also helps to identify

26
successful new product development early in the process to create company growth
and maximize revenues by finding a balance between costs and prices of products.

3. Segmenting, Targeting & Positioning

Company use the market segmentation, that use to company divide the large market
into small markets that can be reached more efficiently and effectively with products
and services that match the customers unique needs. With the help of target marketing
the company can achieve higher sales and stronger position.

4. Distribution strategies

The company moves its products through direct selling and distributors. In the local
area, company provides direct marketing and in other areas the distributor will supply
the products. The distributors collect details regarding the movement, quality opinion,
expectations etc. from retailer and pass the same concerned department. The company
has several schemes and plans for distributors retailers.

5. Pricing strategy

The companies pricing is based on two things such as competition and cost. The
competitive product the company can charge lesser price than its competitors. The
other pricing method is cost based, the product price must cover its cost and also get
the profit.

6. Promotional Activities

The marketing departments organize various promotional activities to increase

sales. The company gives special attention to its promotional activities. The
company is spending more on promotional activities like sales promotion. The
promotion activities include giving incentives to company sales people,
middleman and their sales force. These activities add value to the products.

27
 7. Place

The j&j group of companies has a large number of distributors in Kerala, major cities
in India and abroad, UAE, Muscat, Bahrain, Oman, Qatar, Kuwait, USA, Canada,
UK, Switzerland, France, Australia, Singapore, New Zealand etc. Considering the
increasing demand they have plans to increase the number of distributors.
The communication between the general manager, area sales manager, sales
representative and distributors through telephone and internet. The strength of the
distribution varies among different products accordingly for example, Rani Puttupodi
will have higher demand in Kerala but will not have the same demand in the Northern
states of India, they would prefer Flour to make chapathi and vice versa. The place of
promotion of product is thus selected by taking into account the nature, needs and
lifestyle of the consumers, but after all these are food products and will be having
nothing less than a moderate demand in every market.
The communication between the general manager, area sales manager, sales
representative and distributors through telephone and internet. The strength of the
distribution varies among different products accordingly for example, Rani Puttupodi
will have higher demand in Kerala but will not have the same demand in the Northern
states of India, they would prefer Flour to make chapathi and vice versa. The place of
promotion of product is thus selected by taking into account the nature, needs and
lifestyle of the consumers.

28
8. Promotion
It is the process of communication about the product to current and potential customers in
order to persuade them to buy the product. Promotional activities like advertisement, trade or
dealer promotion, increasing rate of commission to the representative etc. are followed by the
company; Rani gives offers to the dealers, which will also benefit to the customers.
9.Advertisement
Advertising is the process through which the consumers are getting information about the
product. It persuades the consumers to buy the product. It increases the sales and helps in
creating a brand name and consumer loyalty.
Advertisement may be informative or competitive and product oriented or company oriented.
Informative advertisement gives information about the product, competitive advertisement
tries to put down competitors product. Similarly, the product oriented focuses on a particular
product alone, whereas the company oriented advertisement focuses on the whole product of
the company or the company as whole.
The J&J group of companies spent a large amount on advertisement which was conducting
every month in a year. The advertisement efforts can be channelized as follows:

Wall painting

Boarding and board

TV/Radio/Newspapers/Magazines etc.
10.PRODUCT PROFILE

UNDA RICE
This short, round and reddish color variety of rice is rich in fiber and Vitamin B. The
Palakkaadan Matta as this variety is commonly known is popular in Kerala and is produced
in short and long varieties by Rani.
VADI RICE
The long grain rice or the basmati from Rani is widely accepted for its quality and unique
taste. The feature of Vadi rice from Rani is its non sticky quality.
KURUVA RICE
The par boiled rice known as Kuruva Rice is a specialty of Rani. This process of soaking,
pressure steaming, drying and milling is done in excellent manufacturing facilities.

SUREKHA RICE
This thin and long variety of rice is also known as the US style rice. Rani Surekha rice cooks
faster and is more tastier.

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JAYA RICE
Jaya Rice is well known for its nutritive qualities and is one of the favorites of the woman in
any household. Rani Jaya Rice carries with it, the quality stamp of Rani.
4.4 Production department

Production denotes the conversion of raw material to semi-finished or finished products with
the help of call-in production process. The main aim of any production system is to produce
economically goods and services required by the customers.

The main purpose of production department in Rani group is to manufacture various types of
rice products, which is having a better demand from consumers both in Kerala and the
international market.

Manager heads the production department. There are different sections under this department
like plant, maintenance department, work shop and boiler department. All manufacturing
function are carried out under this department.

The main objective of preventive maintenance department and corrective maintenance of

Rani group including minimizing brake down , minimizing long run maintenance cost
providing better working condition and reliable conditions for equipment to perform at
specific technical condition through service, replacement, repairs etc.

Daily average production of the plants is 25 ton from 1 shift and 60% of the output are
finished products. In Rani chairman decides the plan for production. Go downs are there for
each plant. The high capacity Diamond plant has a capacity of 125 tons of production from 1
shift. The pollution control board certifies the company each year. There exists an effluent
treatment plant to reuse the waste water and is used for gardening and watering roads.

The department structure is as follows:

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 Plant
Adminis
trator

Plant Hr Production
In charge

Electrica Power Mainten Welfare Store

lDept. Plant ance Officer Dept.
Dept Dept.
Internal
Auditor

Welding Lathe Supervis Store

ors Head
Cyclone

Workers Asst.

Workers

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Paddy Paddy Cleaning

Paddy Holding
Tank

Par Boiler
(thumba)

Dryer

Dry Paddy
Storage Tank

Shaker

Destoner

Rubber Sheller

Separator

Whitener

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 Shelly
Polish

Rice
Grader

Rice Fine
Cleaner

Rice
Storage
Tank

Sortex

Weighten
ing&
Packing

Loading

There are mainly 5 stages for production.

1. Paddy cleaning
2. Par boiling
3. Milling
4. Sorting
5. Packing

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Paddy cleaning

Two workers will be assigned for one shift. At first the shaker will remove the major waste
like dry grass and coir. Then it will wait out the dust and chaff. Destonner will remove small
stones and the paddy will be elevated through the bucket elevator to the storage tank.

Boiling

The tank thumba will be filled with boiling water of 90 to 100 degree Celsius. Paddy will be
then drawn into it. The immature paddy will float and it will be removed. Totally 6 hours is
needed to complete this task. After boiling the waste water will be outpoured. The steam will
pass through a pipe and the boiled paddy will be drawn to the drier and then to the blower.

Milling

The shaker removes the extra waste and destonner removes the small stones. The rubber
Sheller breaks the paddy to rice. From the output paddy hull will be removed. After that
separator categorize the rice to 3 categories half broken, full broken and unbroken. Then the
whitener machine separates and collect bran in a separate bin. Then the rice grader moves the
full length to the storing panel. Silky polisher polishes the rice with water content.

Sorting

Digital CCD camera removes the black rice.

Packing

All except 50 kg and 70 kg bags are packed manually. Then it will loaded to the
destination.

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4.5 Operations department

Chief Operations
Manager

Asst.
Manager

Manager Manager
Exports Procurement

Clerical Staff Clerical Staff

. The sortex machines are imported from countries like Germany and China. Each year
maintenance will be done under the supervision of this department. For additional
maintenance purposes a contract named Annual maintenance Contract is there. The inventory
levels are checked by the company and the concerned departments too.

The three main operations (functions) of the department are

Procurement
Export
Administration
Procurement
1. Usual practice- floating enquiries of their requirements based on the requisition from
concerned departments.
2. Based on their enquiry they will get quotations.
3. They make a comparison statement to identify best prices and terms and conditions.
4. Thereafter company place orders to the suppliers selected out of the statements.

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Export

1. It is important for the company to explore the probability of finding suitable overseas
market for export.
2. Export is made directly to the importer or to the merchant exporter. The merchant
exporter will give the requirement then.
3. Merchant exporter will approach the company for fulfilling export requirement.
4. Since the overseas market is so competitive company has to see many parameters for
dealing with them.
5. For export, the items are produced specially as export quality.

Administration

1. Administration on day today assignments is given to employees of different

departments. This is from marketing, export, purchase, finance and accounts and even
production department.

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 CHAPTER 5
SWOT ANALYSIS

37
Strengths

The company is having a good customer base

The productivity is excellent and the pollution is well controlled.
Availability of pure water for manufacturing
High quality products
Product diversification
No trade union

Weakness

No frequent advertisement
Scarcity of raw material
The company is not certified with ISO .

Opportunities

Availability of cheap labor

FMCGs are gaining demand in the markets
Good scope for few products like food supplement

Threats

Tough competition in the market

Extinction of paddy cultivation in Kerala
Increasing raw material prices
Export of rice is banned by the government

The changing interest and preferences of customers

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 CHAPTER 6

OBSERVATIONS
&
SUGGESTIONS

39
6.1 OBSERVATIONS

Talking about the findings on the infrastructure of the manufacturing plant in

Arpookara, there is good working environment for the employees
The usage of modern and updated technology, in the field of production process gives
a cutting edge to the modernization of the company
The improved quality standards of the company show a tremendous achievement in
the rice industry
All departments are well structured
Good working environment for employees
Team effort and honesty in their strength
Health and safety of employees are given importance
Training programmes and meetings are held subsequently

6.3 SUGGESTIONS

The present strategies of the company in various segments should be improvised

especially in the case of setting up a marketing development in the unit
The company should maintain better tie ups with the dealers and subsidiary
institutions
More attractive advertisements in media would help in marketing
The company website should be updated often
Motivational incentives should be given to the best performers in the organization as
it could be the best way to do performance appraisal to figure out if more productivity
of the work is being performed
It is better to provide a collaborative system and approach to the current limitations of
the work methods and need to support track and achieve the revision work
It is better to diversify Rani products to avoid the limitations of current exports

Rani Group ltd is a leading manufacture for the assured branded rice Rani marketed in Kerala
state and abroad .It is not considered to be in the state of Kerala with no independent units for
the manufacture of rice. There are no other industrial groups in the state with production

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capacity that of Rani group of company the present infrastructure of the Rani group of
companies consist of 15 industrial unit..The main positive aspect of the company is that it
could maintain a better relationship between management and employees. Hence we can
conclude the Rani Group Ltd will be able to reach great height.

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