Dhanhar Masala

Dhanhar Masala Pvt. Ltd.
A Summer Project
On
“Analysis of Four Departments of
Dhanhar Masala Company”
For the partial completion of graduation

degree in BBA
From
Prof. V. B. Shah Institute of Management
Prepared by:
Submitted to : Prof. V. B. Shah Inst. of Mgt.
Prof. V.B. Shah Institute of Management Page 1

Acknowledgement
I would like to thanks to Veer Narmad South Gujarat
University to include this summer training in the curricular of
B.B.A. program.
I experess my deep sense of gratitude to “DHANHAR

MASALA PVT.LTD.”to allow me to do summer training &
giving me their best to accomplish the same.
I would also thanks all the faculty members of college to help

me greatly in preparation & Guidance during the training. I also
thanks all members of “DHANHAR MASALA PVT. LTD.” to
support & guided me during the summer training.
I would like to thanks with great pleasure on colleagues, who

helped me in successfully completed this project.
Date:
Place: Surat

Yours Sincerely,
Executive Summery
The project basically deals with the recently
the customer of Dhanhar Masala. The servey about the customer
satisfaction. The servey says that most of people give top rank to
the best masala of industry.
In this project, we have covered four cites for the servey of test of
masala for the purpose of to identify about the industry awareness,
satisfaction of services, which were provided by the DHANHAR
MASALA PVT.LTD.
Finding said that industry has not yet covered the business
persons those who are used masala for the purpose of pleasure, test
& safety of health. So, it is necessary to marketing in that sense to
cover all the various customers.
All the information is presented in simplified manner have been
included wherever required.

Declaration
We here by declare that this training report is
prepared with my own efforts as well as under guidance of
manager of DHANHAR MASALA PVT.LTD. This report has
been prepared at “DHANHAR MASALA” during 20/4/2011 to
20/6/2011 with my skills & Management tools & techniques,
which we learnt in college during first two years.
This report has not been previously submitted

by any one to any university, for award of any other degree.
If we found to be guilty of not fulfilling the

above promises, Our submission can be declared invalid & college
has the right to reject this project.
Name of the
Student,
Banti
Patel.

Date:
Place:
Preface
The knowledge lies every where whether it is
theoretical or practical. Theory of any subject is important but
without its practical knowledge it becomes useless particularly for
management student. As a student of the business administration,
we have studies many theories in the class room but after taking up
this project works, we have experienced & understood these
management theories & practices in its full sense, which play vital
role in business field today.
This report is designed with the objective to gain
practical knowledge about the beverage industry it’s working &
functioning in different department of “DHANHAR MASALA
PVT. LTD”

MISSION & VALUES

One of the greatest strengths of the Dhanhar
Masala industry is it’s ability to developed customized products.
This policy of Dhanhar Masala industry has helped to build close
ties & mutual trust with customer globally, thus increasing
worldwide acceptance of its products.
MISSION:
To delight the customer by continuously developing
new products tuned to evolving needs & maintaining high standard
of quality & efficiency in production & prompt delivery.
VALUES:
1. High priority on customer satisfaction.
2. High standards of consistent quality & reliability.
3. Promoting use of modern technology & practices.
4. Minimizing profitability for cost-effectiveness.
5. Commitment to community development &
environment protection.

INDEX
Sr. no. Subject Page

No.
1 Introduction
2 Marketing Department
3 Human Resource
Department
4 Production Department
5 Finance Department
6 Bibliography

7 Annexure
INTRODUCTION
History of Industry:-
DHANHAR MASALA BHANDAR
introduce it self as a leading manufacturer & exporter of Indian
particularly masala’s, Hing’s & others. Established on 1966, the
company has always followed the philosophy of providing quality
products & services to our ever increasing clientele. Today
DHANHAR has become a name synonymous to Indian spices, it’s
tastes & aroma, & has becomes a name of repute in spices & hing
industry.
The name “DHANHAR” itself can notes “MASALA”.
DHANHAR MASALA starting in the home place &

it’s first products is “Hing”.
Meaning of Dhanhar:-
DHAN means “LAXMI”

HAR means “MAHADEV”
DHANHAR names comes for the two

dynamic people, first is Dhansukhlal & seconds is Harkishanlal.
DHAN meams Dhansukhlal.

HAR means Harkishanlal.
History – An Overview:-
Thirty eight year back, two
dynamic entrepreneurs, Mr. Dhansukhbhai Chhabildas
Vankawala & Harkishanlal vankawala, pioneers in spices &
Hing industry & connoisseurs of Indian testes, joined hands
together to start Dhanhar Masala, supported by Mr. Bipinchand
Chhabildas Vankawala; a mechanical engineer by profession. The
firm started as a gruh udhyog manufacturing Hing, graduated in
terms of size & volume; obviously due to healthy response from
the market. In the 1972, a manufacturing plant was established in
surat. The company started manufacturing spices in 1976 with a
singal product “Dal Shak Masala” & has consistently climbed up
the growth ladder since. The company at present is manufacturing
more than 30 different spices. For bulk order, we can customize
the products according to your requirement.
In 1990, a major milestone was achieved

when the company got “AGMARK” certification of its Hing. In
1995, same certificate accorded by the spices.

When company started, it goes in the loss, but

after some time loss converted at big & big profit. In the 1977, the
price of “Dal shak” masala was just 7 Rs. In 5 Kg. So, it’s very
chipper. In the 1988, Hing’s packaging stared & published name at
the “BHANDHANI HING” & also developed a brand name of
Dhanhar Masala. All the production by manually, no machine
work of this time. On this time means, 1988; the staff was just 10
people in Dhanhar Masala & now the staff is about 62 people in
dhanhar Masala. Manually works time period is 1988 to 1996,
means about 8 years.
Under the able guidance of the promoters, the

company has reached to a position, par excellence. Mr. Hitesh
Vankawala, ( B.Com, L.L.B.) & Mr. Jignesh Vankawala,
( B.Com), able sons of Mr. Dhansukhbhai joined business in 1992
to 1998 respectively. Mr. Hitesh are looking after sales department
Where as Mr. Jignesh are looking after Quality & Production
department.
The new entrants are following there
father’s footsteps & have the enough dynamism & acumen to lead
the company to new heights.
The company boasts of modern machinery

& high technology to attain the quality without losing the
traditional aroma of Indian spice. Our products are well known for
their high purity.
The reliability, flexibility, competitive

pricing & prompt services have been the pillars of the company’s
reputation & success.

2. MARKETING DEPARTMENT

1) Marketing environment
2) Products of the industry
3) Packaging & Labeling
4) Price of the products
5) Organization’s buying process
6) Product life cycle & Marketing strategy
7) Channels of distribution
8) Marketing / sales department at a glance
9) Promotional activity

Structure of Marketing Department
Clerk
Peon
Agent
Head ofHitesh
Marketing Department
bhai
(Head)

1. Marketing Environment
(Competition)
There are some points which are used in
DHANHAR MASALA are given bellow here in the marketing
environment (competition).
A. Concept of target
B. Concept of channel
C. Concept of competition
D. Concept of public
Concept of Target:-
There is annual tern-over is 3 ton per
day (1080 ton per year). Profit target of the company is 20% of
sales.
Concept of Channel:-
There are three types of marketing
chanel.
1) Communication Channel:-
Through this channel
deliver & receive massage from target market. The company’s
communications channel includes News paper, Radio, Local TV
channel, postures, Local transportation.
2) Distribution channel:-
Through this channel company
display sell & deliver the physical products to the buyers.

Company include CNF (super stockist), Distributor, Shop keepers

etc.
3) Service Channel:-
Through this channel company can
carry out transactions with potential buyers. This channel include
Agent Godown Delivery, Warehouses, Transportation companies,
Insurance company etc.
Concept of Competition:-
It includes all the actual &
potential rival offering & substitute of there product a buyer might
be consider. The company may be of monopoly, total competitive
or oligopoly.
E.g. There are many masala brand against Dhanhar Masala as
like as SK masala, Gajanand masala, & Ramdev masala.
Concept of Public:-
The Population outside of the company
within the nation. From which company can identify their potential
buyers, current users, Decision makers & general public
Macro Environment
1. Social & Cultural Environment:-
Dhanhar masala
does not affect to cultural factors but it’s affect social factors
because cultural factors cultural, sub-cultural, social factors.

Society sales belief, values & harms that largely define testes &
preferences of customers. Peopal observe almost unconsciously a
world view that defines their relationship to them to measures &
the universe.
Regional differences in language, customs,
social system, values, habits, & religion & cast system may be
social & cultural environment.
2. Technological Environment:-
One of the most
dramatic force shopping people live is technology. Technology
includes automatic packing machine, computers, printers, etc.
There are many technology is being used in Dhanhar Masala.
Technological environment increase production more & more.
Because of using technical machinery & equipments it takes
low/minimum time for maximum production.
3. Political & Legal Environment:-

There are two
main sub-points in this environment.
 Increase in the business environment:-

Company must
have a good working knowledge of the major low protection
competition, consumer & society.
 Protection the welfare of the customer:-

There
are five types of protecting welfare of customer in Dhanhar
Masala.
 Safety

 Information
 Choice
 Redresses
 Representation
4. Economic Environment:-
Marketers require
purchasing power as well as people. The available purchasing
power in economy depends on current income, price, debts, saving
& credit availability.
Income distribution is also creating major impact for
economy growth.
Physical Environment
Raw Material:-
Dhanhar masala Purchasing row material
from various Country & states.
E.g. - Red chilly powder from Karnataka,
- Hing from Afghanistan
- salt from Pakistan
- Plastic package from Mumbai
Live Stock:-
They are no expiry date which are reaching or not
reach to consumer in Dhanhar Masala.

2. Products of the Industry (Product

Mix)
There are many products of Dhanhar Masala
industry. Which are bellow here;
Product Product Name

no.
1 Agmark Hing
2 Chilly Powder
3 Turmeric Powder
4 Coriander Powder
5 Coriander-Cumin Powder
6 Aachar Powder
7 Rajwadi Garam Masala
8 Tea Masala
9 Chhole chana Masala
10 Kitchen Hing Masala

11 Chat Masala
12 Pavbhaji Masala
Product no. Product Name
13 Panipuri Masala
14 Panjabi Gravy Masala
15 Garlic masala
16 Buttermilk masala
17 Chewada Masala
18 Milk masala
19 Sambhar Masala
20 Biryani Pulao Masala

21 Singoda Masala
22 Rajwadi Atta
23 Sindhav Salt
24 Chicken masala
25 Mutton Masala
26 Fish Masala
27 Tandoori Chicken masala
So, there are lot of item production in the

DHANHAR MASALA, Which are daily use in home & hotels.
Product Mix
Meaning of Product mix:-
“A Product mix (also called
product assortment) is the set of all products lines & items that a
particular seller offer for sale to buyers.”An organization with
several product lines has a product mix.
In other words, Product
mix is the composite of product offer for sale by a firm. It is the
collection of product manufacture or distributed by the firm.

Product Mix has three main

characteristics;
 Width
 Depth
 Consistency
Width of the product mix is concerned with the

number of the products line marketed by Dhanhar masala. Width
& smaller number of products lines narrower is the product mix.
Depth of the product mix depends on the
average number of the total items included in to the product line.
The average number of product item smaller is the depth of
products.
Consistency of the product mix indicate how
far or to what extent the product lines are interconnected with each
other from the view point of final use or channel of distribution.
The Following situation indicates lack of optimization of

Product mix.
I. A situation of excess production capacity arising seasonally
or very often.
II. I proportionately very high percentage of profit from a few
item of Dhanhar Masala.
III.Insufficient width of product mix to the extent thet
maximum benefits of Dhanhar Masala sales for contacts.
Importance of product mix in Dhanhar masala.
i. Profit Maximization
ii. Maximization of sales
iii. Stability of sales & sales income
iv. Maximum Benefits

Profit Maximization, With the help of product mix

available opportunities can be turned into maximum profits. This
would be not having been possible in it’s absence.
Maximization of sales, in this point to improving in

the sale maximum level. It helps to in exploiting the situation for
maximizing the sales. Stability of sales & sales income, any
decrease in the sales of any product item of Dhanhar Masala
disturbance in optimum product mix & income also decline. So,
the sale of any item of Dhanhar Masala is stability of sales & sales
income can be maintained.
Maximum Benefits, the salesmen of the present
product come in contact with a large number of customers. By
introducing a new products maximum benefits of their contact can
be derived with minimum cost & maximum into the profits.
3. Packaging & Labeling:-

1. PACKAGING
Meaning of Packaging:-
Packaging means, The wrapping of
goods before they are transported or stored or delivered to a
customers.
In the other hand, “packaging is the
sub-division of the packaging function of marketing.” Packaging
has been define as, An activity which is concerned with protection,
economy, convenience & promotional consideration.”

We can define Packaging as, All the

activity of designing & producing the container is called the
Package.
The Packaging has three levels, they are following:-
 Primary Package
 Secondary Package
 Shipping Package
Packaging is also kept pace with our products &
its market, conforming to international standards & featuring
diverse packing methods to match client requirement.
Packaging is not available in Kg with double
polypropylene in liner in trucks. It is also available 10000 kg
cardboard boxes on wooden pallets. Trucks are also available for
5000 kg & 10000 kg.
We have a special inspection team, which
ensures the quality of packing before the material is dispatched
from the works.
PRIMARY PACKAGE

This is the primary packaging of the “Garam

Masala” in the Dhanhar Masala industry. So, this is the first step
of the Packaging of masala. All types of masala packaging like this

type but this is the example only “Garam Masala’s” packaging.
SECONDARY PACKAGING

This is the secondary packaging of garam

masala in the dhanhar masala industry. So, this is the second step
of the packaging of the masala. This is the important steps of the
packaging.
SHIPPING PACKAGING

This is the last & final means shipping

packaging of the garam masala in the dhanhar masala industry. It

is the very important packaging of the masala because when it’s

over then production supply in to the market & use consumer &
others.
So, The packaging of a consumer products is
an important part of the marketing. A good number of companies
adopt aquare packaging place of round packages which save space.
There are many factors to be consider while designing a package.
Dhanhar Masala used kind of the material for the packaging:

1) Card board contriver
2) Plastic contriver
3) Plastic bag
4) Non-own bag
5) Pouches
6) Paper contriver
7) Clothes.
Kinds Packaging of Dhanhar Masala is bellow here:
1) Consumer Packaging.
2) Family Packaging.
3) Multiple Packaging.
So, There are different packaging produce by

Dhanhar Masala for customers.
Packaging size of Dhanhar Masala is 1 kg., 5kg.,
15kg, & 40kg.
2. LABELING
Meaning of Labeling:-
“Label is a part of product, which

carries verbal information about the products or the sellers. It may
be a part of a package, or it may be a tag attached directly to the
products.” Label may be small slip or a printed statement.
DHANHAR MASALA use three types
of label, which is following here:
 A Brand Label.
 A Grade Label.
 A Descriptive Label.
Label gives following information in any product in

theproduction.(DHANHAR MASALA).
1. Brand name.
2. Picture of the product.
3. Address of the producer & industry.
4. Gross & Net quantity of the content.
5. Ingredients in the products.
6. Direction of the use.
7. Precautionary measures.
8. Nature of the products.
9. Date of packaging & expiry.
10.Retail Price.

4. Price of Products (Pricing Policies)

Meaning of Price:-
It includes price, trade discount, cash
discount, credit terms, & collection policy. The price is determine
normally after considering production cost, distribution cost,
quality, rival’s price & Government control.
Pricing policy of industry:-

Price is the one element of
the market mix that produces revenue. The other element produce
costs. Price is the one of the most important factors that affect
demand, growth of company, market share, competitors, supplier
etc. so we can say that the price is decide by considering this all
factors. Price may be suitable to product & market.
How to deciding the price.

Dhanhar Masala has
taken a certain step to fix up the price of it’s different products.
1) Selecting the pricing objective.
2) Determination of demand for products.
3) Estimating the cost of the production.
4) Analysis the competitors cost, price & offers.
5) Selecting the pricing Methods.
6) Selecting the final price.
Responding to the competitors price

The company may react the change in competitors price
changes in following way,
1) Maintain price
2) Maintain price & add value
3) Reduce price
4) Increase price & maintain quality
5) Launch a low price fighter line
Starting price of the Dhanhar Masala is 1, 2, 5, 50, 100,

200, & 500 up. Price list of Dhanhar Masala for the different
masala’s items in the markets to the customers. ( 100 kg )
5. Organization’s Buying Process:-

Dhanhar Masala Pvt. Ltd. Industry has major
business in industry. It provides a row-material to the other
industry or processing units like dyeing mils, printing units, &
others. The order placing for the row-material:
1. Problem re-organization
2. General needs specification
3. Products specification
4. Supplier search
5. Proposal solicitations
6. Supplier selection
7. Order routine specification
8. Performance review
Where’s comes Row-materials?

 Red chilly powder from Karnataka

 Hing from Afghanistan
 Salt from Pakistan
 Plastic package from Bombay
6. Product Life Cycle & Marketing

Strategies
Meaning of product life cycle:-
As every being has
life, a product has its life. Industrial goods may have a longer life
than consumer goods. Products, like human beings, have length of
life for making sales & earning profits.
The product life cycle
is generally termed as product market life cycle, because it is
related to particular market. For instance, an old products in the
market of Bombay may have a life in a village. The product life
cycle may be short for same products & long for some other
products. The period may differ from product to product. But the
product passes through the stages, collectively known as product
life cycle.
Chart of the product life cycle in dhanhar Masala:-

Introduction:-
Product is new, awareness in market, cost of
marketing high & profits are low.
Introduction is the first stage in the life of the
products. This is an infant stage. The product is a new one. The
new product means, A product that opens up an entirely new
market, replaces an exiting products or significantly broadens the
market for an exiting products. In this stage profits may bellow,
because of heavy advertising & sales promotion in order to
stimulate the demand.
Marketing strategy:-
There are four type of the marketing
strategy in Introduction stage but Dhanhar Masala use only two
types of the strategy.
a) Low price & a bog promotional expenditure budget

b) Low price & a small promotional expenditure budget

If the market is very wide, customers are
unfamiliar with the product & sensitive to the price & the market
is also competitive this strategy is adopted for the quick entry in
the market.
If the customers are price sensitive &
promotional expenditure are not likely to increase the sales & the
customers are familiar with the product strategy is adopt for early
& quick entry of the production in the market.
Growth:-
The product has given satisfaction to the first buyers.
Salas increase rapidly & product started generate profits.
Growth is the second stage in the life of the product. In
this stage, the product satisfaction the market & a product gains
acceptance from the part of consumer & Businessman. So, sales &
profits are increase. The success of the firm depend upon the
efficient manufacturing & distribution system of the products.
Previous buyers continue in their purchase & new buyers appear.
Marketing Strategy:
There are five type of marketing strategy
in Growth stage but Dhanhar Masala use only four types of
Marketing strategy;
a) To increase the quality of the products & add new
feature of the product.
b) To start a campaign to search out new area of market.
c) To intensity the advertisement & find out the
distribution for wide spread sales.
d) In order to attract price marketing strategies the
industry to decrease the price at appropriate time.

Maturity:-
The product reaching maturity & sales are good. But
better for market share is about to begin.
At this stage, keen competition increase. Sales
continue to increase for a while, but at decreasing rate.
Competitors go for mark down price by increasing advertising
deals. Market expenses increase, even after mark-down price,
which enable to face competitors. Thus, profits are thinned,
Additional expenses are involved in production modification in the
market. Overall marketing effectiveness becomes the key factors
in this stage.
Marketing Strategy:
There are five types of marketing
strategy in Maturity stage & Dhanhar Masala can used all the
strategy,
a) Effort should be made to enter into new market.

b) Step should be taken to increase the utility of the
product.
c) Product should be made familiar with other classes
of customers.
d) Product should be improved very much.
e) Alteration should be made in the marketing mix to
suit the changing condition.
So, in Dhanhar Masala’s every products moves
through the life cycle, having three phases, which are abive the
detail.
7. Channels of Distribution:-
Meaning of Channel of distribution:-
According to
American Marketing Association; “A channel of distribution or
marketing channel is the structure of intra-company organization
units & extra-company agent & dealers, wholesale & retail
through which a commodity, products or services is marketed.”
According to
Richard M. clevent, “A channel is the pipe line through which
products floes in its way to the customers. The manufacturer puts
his products into the pipe line or marketing channel & various
marketing people move it along to the consumer at the other & of
the channel.”
Marketing channels are the distribution network.

Product flow to the market through the distribution Network.
“Marketing channel” & “Channel of distribution”. Is a path traced
in the direct or indirect transfer of ownership to a product, as its
move from a producer to ultimate consumer / industrial users.
Channel of distribution in Dhanhar

Masala
Manufacturer
CNF
(Super Stockiest)
Agent
Wholesaler
Retailer
Consumer
Distribution channel:
The producer & the final customer
are part of every channel. We will use number of intermediate
levels to designate the length of channel. There are many type of
distribution channel in industry. There are following;
1. Zero level channel.
2. One level channel.
3. Two level channel.
4. Three level channel.
Dhanhar Masala use to zero level channel & one

level channel in rare case they use a two level channel company
get an export order by E-mail & domestic market. There is use one
level & two level.
8. Sales Dept. at a glance

 Main product of masala essential commodities in sales in
open market by masala agent & super stockiest as per daily
marketable etc.
 Masala factory reputed person perform as an agent & super
stockiest taken a some deposits amount from masala.
 Masala delivered against only demand draft & cash. There is
a some control about realizing masala quota for even month
edusting by control government department.
 It means department of food supplest, Government of India.
 Masala factory export masala about as per instruction by
control government benefits to masala factory for exporting.
 Price as per the domestic market depend upon demand &
row materials.
9. Promotional Activities
Meaning of Promotion:-
Promotion means a set of
effort made by the company for stimulate the demand for its
products & product without making any alteration in product mix,
price & channel of distribution.
Promotion is any
communication activity whose main object is to move forward a

product, service or an idea in a channel of distribution. It is a set of

effort by marketer to inform & persuade buyers to accept, resell,
recommended or use the article, service or idea which is being
promoted. It is a form of communication with an stimulating
demand by affecting knowledge, preference, attitude & behaviors
of the buyers.
Important of promotion in Dhanhar Masala:

1. Increasing distance between product & customer.
2. Need of communication in expanded market.
3. Information to the market intermediaries.
4. Stimulates demand
5. Reviving of demand.
6. Makes other element of marketing mix meaning
full.
Customers purchase masala items above Rs 1000 up. So,

Dhanhar masala given one shopping beg.
Customer purchase masala item above Rs 2000 up. So,
Dhanhar masala given one Travelling Beg.
Promotional & Advertising policies:

Dhanhar
masala is a private limited company. Its customers are very
satisfied with the products & services that they are provided. As
we know that the best advertising is done by the satisfied
customers, most of the times the customers themselves
recommend product of Dhanhar Masala in their business circle. No

other advertising policies are followed by Dhanhar masala as such

as they never felt need of doing so till now.
But in case if there is any need of
promotion, they make use of consumer direct channel to reach &
delivered goods to the customer without using any middlemen.
These channel include telephones & fax devices. Generally they
received ordered in abundance, but during slack time they call on
their customers & ask them to place their orders. They try to tempt
them by saying that production of so an so masala is being carried
out & if they placed their orders soon they will get prompt delivery
or else they will have to wait for 4 to 5 hours for delivery if they
make it late.
This kind of direct marketing helps them to
build continuous relationship each customer & also make their
offers & strategies less visible to their competitors. Also they
provide the booklet containing samples of their varieties of masala
to their customers.
3. Human Resource
Department

 Activities of personnel / HR department

 Recruitment & Selection
 Human Resource Planning
 Training & Development
 Promotion & Transfer
 Performance Appraisal
 Wages & Salary structure
 Employee Welfare
 Human Resource Audit
 Hierarchy structure of Organisation
 Absenteeism Rate
 Employees Turnover
Structure of HR Department

Agent
Clerk
Peon
Hitesh
Head of HR Department
bhai
(Head)
Introduction:-

HRM is that branch of management which is

responsible on a staff of concentrating on those aspects of
relationship of management to employee & with the development
of the individual & the group. The objective is to attain maximum
individual development, desirable working relationship between
employer & employee, employee & employee, & effective
molding of human resource as contrasted with physical resources.
In Dhanhar Masala, there is more

importance is given to the personnel because all work are done by
human beings if right person appointed than company can get
success in its works. Industry believes in getting well persons for
its work.
Activities of personal / HR
Department
Meaning of HR:-
“HRM is a management function
concerned with hiring, motivation & maintaining people in an
organization. The function & principle are applied to
acquisitioning, developing, maintaining & remunerating
employees in organization.”
Definition of HRM:-
“HRM is a series of integrated
decision that form the employment relationship, there quality
contributes to the ability of the employees to achieve their

objectives.”
“HRM is a management in planning,
organizing, directing & controlling of the procurement,
development, compensation, integration, maintains & separation
of HR to the end that individual, organization & social objectives
are accomplished.”
Activities of HR department
HRM department helps managers to recruit, selection, trained &
develop members for the company.
HRM is concern with the people dimension in organization. HRM

refers to the set of program function & activity design & carry out
in order to maximize. Both employees & organization
effectiveness.
The main activity of HRM department are to recruitment,

selection, training & development of the members of the
organization.
The functions, which used by HRM department in

Dhanhar Masala
1) Managerial Function
2) Operative Function
1) Managerial function:-
I. Planning:-
Planning is the process of deciding the goal &
formulating policy & programs to achieve the goal.

Planning involves forecasting & research. Planning helps

to face successfully the changes that are likely to take
place in future. In preparing human resource budjet.
II. Organizing:-
Organising is the process of allocating
tasks among the members of the groups. Establishing
authority & responsibility relationship among them &
integrating their activity towards the common objectives.
Organizing is the framework through which management
directs controls & co-ordinates the efforts of people.
III. Directing:-
Directing is the process of motivating,
activating, leading & supervising the people. Directing
includes all those activity by which a manager influence
the actions of subordinates. Directing is the heart of the
management process. Directing also help in building
sound individual & human relation in an organization.
IV. Controlling:-
It implies checking, verifying & regulating
to ensure that everything occurs in conformity with the
plans adopted & the instruction issued. Such monitoring
helps to minimize the gap between desired result &
actual performance.
2) Operating Function:-
There are five functions in the
operative function. But Dhanhar Masala use only three functions
in their industry, which are bellow here.
a) Procurement Function:-

Procurement Function is
concerned with securing & employing the right kind & proper
number of people required accomplishing the organizational
objectives.
Dhanhar Masala consists only five activity in procurement
function.
1) Job analysis
2) Human resource planning
3) Recruitment
4) Selection
5) Placement
b) Development Function:-
Human Resource development
is the process of improving the knowledge, skills, aptitude &
values of employees so that they can perform the present & future
jobs more effectively.
Dhanhar Masala consists only three activity in Development
function.
1. Performance appraisal
2. Training
3. Exicutive Development
c) Compensating Function:-
Compensating Function is refers
to providing & fair remuneration to employees for their
contribution to the attainment of organizational objectives.
Dhanhar Masala consists only three activity in Compensation
function
1. Job evaluation
2. Wage & salary administration
3. Bonus

2) Recruitment & selection

1. Recruitment
Meaning of recruitment:-
Recruitment is understood as the
process of searching for & obtaining applicant for job, from among
whom the right people can be selected. Recruitment involves
attracting & obtaining as many application as possible from
eligible job-seekers.
Organization have to recruit

people with requisites skills, qualification & experience if they
have to be sensitive to economic, social, political & legal factors
within a country.
Definition Of Recruitment:-
“Recruitment is the process
of finding & attracting capable applicant for employment. The
process begins when new recruits are sought & ends when their
application from which new employees are selected.
➢ Process of recruitment in Dhanhar Masala

The following steps of recruitment are used in
Dhanhar Masala.
Planning
Strategy development
Screening
Evaluation & control
1) Recruitment Planning:-
Planning is the first steps of the
recruitment process. Planning’s involves the translation of likely
job vacancies & information about the nature of the job.
Dhanhar Masala, Recruitment Planning deals with:

Type of application refers to the types
of people to be informed about job opening. These details are
available through job description & jab specification.
2) Strategy development:-
Once it is known how
many & what type of recruits are required serious considerations
needs to given to,
 “Buy” decision
 Source of recruitment
 Sequencing the activities in the recruitment process
“Buy” means hired skilled workers or professionals.

If employees has the advantage in the sense that the skilled

professionals & labour can be the work immediately & little

training may be needed.
1) Screening:-
Screening is to remove from the
recruitment process, at an early stage, those applicants who are
visible unqualified for the job. It Screening, clear job specification
are unavailable. Applicant qualifications judge on the basis of
their knowledge, skills, abilities & interest required to do the job.
2) Evaluation & control:-

Evaluation & control s
necessary as considerable costs are incurred in the recruitment
process. Statistical information on the cost of advertisement, time
taken for the process, salaries for recruiters, time spent on
preparing job description, job specification, recruitment overhead
& administrative expenses.
2. Selection
Meaning of selection:-
“Selection is the process of picking
individual with requisite qualification & competence to fill jobs in
the organization.”
The objective of selection process is
to determine whether an applicant meets the qualifications for a

specific job & to choose the applicant who is most likely to

perform well in the job.
Definition of selection:-
“Selection is the process of
differentiating between applicants in order to identify & hire those
with a greater likelihood of success in job.”
Selection is the most important process of the any company &
industry. Selection is the based on choose best workers &
employment for the industry.
Process of selection in Dhanhar Masala

There are five steps of the
selection process used in Dhanhar masala. Which are bellow here,
Preliminary interview
Selection test
Employment interview

Reference check
Physical examination
I. Preliminary interview:-
Preliminary interview is
the first steps in the selection process in Dhanhar Masala.
Preliminary interview, on the other hand, helps reject misfits for
reasons, which did not appear in the application forms.
II. Selection test:-

Generally, tests are used to determine
the applicant ability, aptitude & personality. Different
types of tests are used in Dhanhar Masala are as under,
 Ability Test
 Personality test
 Medical Test
I. Employment interview:-
An interview test is
conducted at the beginning & at the end of the selection
process. The emphasis here is on the letter. Different
types of interview are taken into Dhanhar Masala are as
follows,
 One to One interview
 Sequential interview

 Personnel interview
I. Reference check:-
Reference check is the most
important process of the selection. Many employee
request name, address & telephone number of reference
for the purpose of verifying information & perhaps,
gaining additional background information on an
applicant.
II.Physical examination:-
Last & final steps of the
process of selection is the physical fitness test in Dhanhar Masala.
The results of medical test is recorded in a statement preserved in
the personnel records.
3) Human Resource Planning

Meaning of HRP:-
“ HRP is the process of forecasting a
firm’s future demand for supply of the right types of people in the
right number. HRP is also known as ‘manpower planning’,
‘personnel planning’ or ‘employment planning’.”

HRP is the process of getting the right

number of qualified people into the right job at the right time. It is
the system matching supply & demand of manpower.
Definition of HRP (Human Resource Planning):-

“HRP includes the estimation of how
many qualified people are necessary to carry out the assign
activity, how many people will be available & what, if anything
must be done to ensure that personnel demand at the appropriate
point in the future.”
HRP translate the organizations
objectives & plans into the number of workers needed to meet
those objectives.
Time duration of HRP in Dhanhar Masala

 Short term plans …………..1 year
 Process of HRP in Dhanhar Masala
Organization objective & Policy

Hr need & supply forecast
HR programming
Evaluation & Control
Human resource planning process is important to

making effective planning for personnel. The step taken by
Dhanhar Masala is describing below,
1. First they analysis the organizational plan it means see

deeply future plan of the various department or
organization. Select the organizational objectives & policy
and add work in HRP by employment.
2. Then after they forecast demand of manpower require in

future they think which type of manpower demand is require
is arise & which department and how much personnel is
required. Then they find source of manpower & they also
find how Hr need & supply forecast.
3. Once the demand is decided then they forecast the supply of
the manpower it means best sources is available to recruit
the employee. Then they match the demand & supply of
manpower.

4. Evaluation & control is the final phase of the HRP process.

The HR plan should include budgets, targets & standards. It
should also clarify responsibility implementation & control
which will enable achievement to be monitored against the
plan.
➢ Surplus:- Reduced hours

➢ Shortage:- Recruitment
In this planning following points they take into

consideration for it’s HR planning:
○ When HR need arises
○ Which types of manpower are requires in future.
○ Source of required manpower available for the organization
in future.
○ Is any diversification is done in the organization in short
term or long term.
4. Training & Development

Meaning of Training:
“Training is the process of
increasing the knowledge & skills for doing a particular job. It is
an organized procedure by which people learn knowledge & skills
for a definite person.”
“Training is any process by which

the aptitude, skills & ability of employees to perform a specific job
are increased. Training is essentially practical consisting of
knowledge & skills are required to perform a specific task.”
Meaning of Development:-
“Development is the
process of developing the knowledge & skills in employees for
doing a particular job. Development involves preparing the
individual for a future job & growth of individual in all respects.”
Training & Development:-

Employee training is distinct
from management Development. Training is the short term process
utilizing a systematic & organized procedure by which non
managerial personnel learn technical knowledge & skills for a
definite purpose. It refers to instruction in technical & mechanical
operations like operating of a machine. It is design primary for the
non-managers. It is for a short duration & for a specific job related
purpose.
On the other hand Development is
the long term education process utilizing a systematic & organized
procedure by which managerial personnel learn conceptually &
theoretical knowledge for general purpose. It involves
philosophical & theoretical education concept & it is design for
managers it involves broader education it’s purpose is long term
Development.
Training & development both are different in

company’s point of view,
Training:-
 Contents: Technical & mechanical operation
 Participants: Non managerial personnel.
 Time period: short term short affairs.

Purpose: specific job related skills.

Initiative: From management, Internal promotion.
Nature of the process: Reactive process, to meet
current need.
Development:-
 Contents: Conceptual & philosophical operation
 Participants: managerial personnel.
 Time period: Long term Continuous process.
 Purpose: Total personality.
 Initiative: From individual himself, Internal
promotion.
 Nature of the process: Proactive process, to meet
future need.
Why training needs in Dhanhar Masala Pvt. Ltd.?

There are three reasons to needs training in
Dhanhar Masala, Which are bellow here,
➢ Job recruitment
➢ Technological changes
➢ Internal mobility
Training Methods:-
There are two methods for training but
Dhanhar Masala can used more methods of the training, there are
bellow here,
➢ Job Rotation
➢ Job Coaching
➢ Job instruction
➢ Training through step by step
➢ Committee assignment

5) Promotion & Transfer

Promotion
Meaning of Promotion:-
“Promotion means an improvement
in pay pre-stage position & responsibility of an employee within
his / her organization. A more shifting of an employee to a
different job which has better working hour, better location &
more pleasant working condition does not amount to promotion
for the employee only where it carries increase responsibility &
enhance pay.”
Definition of promotion:-
“A promotion is the transfer of an
employee to a job which pay more money or some preference
money.” When an employee is assigned a higher level job with
more pay & powers then it’s said to promote. Promotion may be
temporary or permanent.
Factor affecting Promotion in Dhanhar Masala:

1) Merit basis:-
Merit means an individual’s efficiency & capacity
as judge from past performance. Merits denote an individuals
employee’s (skills, Knowledge, ability, efficiency & aptitude as
measured from educational training & past employment records.)
2) Seniority bases:-
Company also promotes the employee from

seniority basis. Seniority systems are based on the length of the
service & job experience.
Advantages of promotion in company’s point of view:

 To put the worker in a position where he will be a greater
work to the company & where he may derived incised
personnel satisfaction & income from his work.
 To remove the worker from their job as an alternative to
avoid the embarrassment of firing or demoting him.
 To fill up higher vacancies from within the organization.
 To recognized an individual performance & rewired him for
his work.
 To increase the employees & organizational effectiveness.
 To recognizes an employee’s performance & loyalty &
motivate him towards better performance. To promote job
satisfaction among the employee & give them an
opportunity for unbroken continuous services.
 To attract suitable & competent workers for the company.
 To develop a competitive spirit among the employee for
acquiring knowledge & skills require by higher level job.
 To utilize more effectively the knowledge & skills of
employees.
Transfer
Meaning of Transfer:-
“Transfer refers to a horizontal

movement of an employee from one job to another in the same
organization, Within any requisition change in responsibility,
status & income. Transfer is regular or frequent, as in bank &
other government work.”
In Dhanhar Masala transfer is used to

place employees in position where they are likely to get more job
satisfaction. A transfer to normally a change in job assignment.
Transfer within the same department or across department.
Objectives of Transfer:
There are six objectives of transfer into Dhanhar
Masala.
 To meet organizational need
 To satisfy employee needs
 To better utilize employees
 To make the employee more versatile
 To adjust the workforce
 To provide relief
Factor affecting transfer:

 Poor placement
 Level of training & development
 Nature of the work
 Growth opportunity
6) Performance Appraisal
Meaning of performance appraisal:-

“Performanc
e appraisal is the process of obtaining, analyzing & recording
information about the relative worth of an employee. performance
appraisal & merits rating are used synonymously.”
Definition of performance appraisal:-

According
to Flippo, “performance appraisal is the systematic, periodic & an
imparting rating of an employee’s excellence in matters pertaining
to his / her present job & potential for a better job.” It is the
process of obtaining, analyzing & recording information about the
relative worth of an employee.
Advantages of performance appraisal of company’s

points of view;
 To effect promotion based on competence & performance.
 To confirm the service of probationary employees upon the
completion of the probation period satisfaction.
 To check training & development needs of employees. To
decide upon the pay raise where regular scale have not
fixed.
 To decide upon the pay raise where regular scale have not
fixed.
 To let the employee know where they stand as far as there
performance is concerned & to help them with constrictive
criticism & guidance for the purpose of their development.
 To improve communication. Performance appraisal can
used to determine whether human resource program such as
selection, training & transfer have been effective or not.

Essential of performance appraisal system in Dhanhar

Masala are bellow here,
Clear objectives
Standardization training
Job relatedness
Feedback & participation
Individual differences
Review & Appeal
Process of the Performance Appraisal in the Dhanhar
Masala:
There are five types of the Performance Appraisal
process uses in the Dhanhar Masala, which are below here:
Establishing Performance Standards
Communicating the Standards
Measuring Performance
Comparing the Actual with the Standards
Discussing the Appraisal
Taking Corrective Action

Safety Stander:
Company follows safety ruse restricts.
The company is constructed there plant in such a ways. That in a
case of emergency the worker can be secured more then one way
out are provide assembly point is in case of fire safety virulent can
be implemented urgently as well as general returns, company
provided for the worker hand glows, gumshoes, helmets, masks, to
prevent from the masala reactive. Around the block more in
emergency the firebridged and disaster management center
telephone number are kept in such a way that can be contact
errantly without loosing time first-aid box are kept in each section
of the plan.
Record and System:
As per the rules and regulation
company has to maintain all the rerecord to person working in the
factory. More ever company has to keep the record has per
government reels and factory act. In all necessary firms as well as
regarding safety company has get certain machine cheeked though
government approval agency time to time related to safety rules
and maintain its records.
Factory and office work of time:
The company must have to
come timely and employee has to follow the rules made by the
company and government. Employee not go outside the plant or
site without the permission of his superior or authority. In the
organization this rules touch every person who work in the firm.
Time Keeping:
Shift timing

Dhanhar Masala Pvt. Ltd. Has only one shift that is day shift and
time is: 9 a.m. to 8 p.m.
Break:
12:30 to 1:30 p.m. lunch break
7. Wages and Salary Structure:

About wages & Salary:
Wages represent hourly rates of pay & Salary
means monthly rate of pay, irrespective of the number of hours put
in by the employee. Wages and Salaries are subject to annual
profit. They differ from employee & depend upon the job – nature,
seniority & merit. Wages & Salary, both are part of Components
of Remuneration.
There are three policies of Wages,
 Minimum Wage
 Fair Wage
 Living Wage
A minimum wage should provide for workers

family, for his efficiency, for the education of his family, their
medical care. Minimum Wage 3000 in the Dhanhar Masala Pvt.
Ltd.
A Fair wage should provide for productivity of

labour, place of industry in the economy of a country, prevailing
rates of wages. Fair wage 4000 in the Dhanhar Masala.
A living wage should provide for forms the basis for

fixing minimum wage, capacity of the industry to pay. Living
wage 6000 in Dhanhar Masala.
There are two methods of Wage payment, Which are

uses in Dhanhar Masala:
Methods Depended
Time Wage Depended on the time
Piece Wage Depended on the piece
(unit)
Wages and Salaries structure in Dhanhar Masala Pvt.

Ltd.:
Company’s wages and salaries are paid by incentives
way and also called payment by result. Incentives are depend open
the productivity of the employee.
Productivity of Salaries
workers
1000 to 2000 unit 3000
2000 to 3000 unit 4000
3000 to 3500 unit 4500
3500 to 4000 unit 5000
4000 to 5000 unit 6000
This is structure of paying salaries in the Dhanhar Masala.

Dhanhar Masala Pvt. Ltd. also provide fringe benefit

for such top employee these benefit are as follows.
Provident fund
Gratuity
Medical care
Hospitalization
Accident relief
Health and group insurance
Canteen
Uniform
Recreation
8. Employee Welfare:
Meaning of Employee Welfare:-
According to the Arthur James Todd,
“Employee Welfare means anything done for the comfort and
improvement, intellectual or social of the employee over and
above the wages paid, which is not a necessity of the industry.”
According to the Oxford dictionary
employee welfare or labour welfare means “the effort to make
living for workmen.”
Welfare Activities:-
Welfare activities means those
activities which are do always in favor of employees. It means the
special extra facilities given to employees from company. As it is
Dhanhar Masala provides such kind of facilities to employee
which are as follow,
Provide good condition of equipment and also provide better
environment for work

Company provides individual changing room, store room, rest

room etc.
First aid box provided to all department.
There are two types of welfare activities of the
company
 Intra-mural
 Extra-mural
Intra-mural:- This services are provided within the

establishment. Those include washing & Bathing facilities, rest
room, uniform, medical aid, recreation facilities.
Extra-mural:- These services are provided outside the

establishment. These include housing accommodation, transport,
maturity benefit, sport’s field, holiday home, etc.
Dhanhar Masala use only Intra-mural Welfare Services.
9. Human Resource Audit:-

About Human Resource Audit:-
Audit is an important test of managerial
control of company’s point of view. It involves examination and
verification of accounts and records. Human resource audit implies
critical examination and evaluation of policies, programs,
procedure in the area of HR audit of the company’s point of view.

Advantages of HR audit in company’s point of view.

1) To review the system of acquiring, development,
allocating, and utilizing human resource in the
organization.
2) To evaluate the extent to which line managers have
implemented the policies and programs.
3) To identify shortcoming in the managers in the
management of human resources.
4) To evaluate the human resource staff.
Company’s scope of HR audit are as follows.
1. Auditing human resource policies.
2. Policy of the company
3. Policy formulation
4. Communication policy
5. Consistency policy
6. Auditing Human Resource Programs.
7. Auditing of Human Resource.
8. Company’s Audit Report
10. Hierarchy Structure of Organization:

HR Department
Head

Personal Manager Personal Officer
Supervisor
Worker
Clerk
11. Absenteeism Rate:- Peon
11. Absenteeism Rate

The absenteeism rate of Dhanhar Masala industry

has decreased since last two years as seen from the records
maintain by the industry. The absenteeism rate in the year 2001-
2002 was around 7% which has now decreased to 4% in the year
2005-2006. This is due to the change in the interest and awareness
of the employees working in the industry and development of the
wage rates which is linking.
Example: - The wages are on the basis of their
work or their attendance. If any persons remain absent
continuously for more than eight days without informing the
company that person would be removed from the job.
Why absenteeism rate is decreased.

Absenteeism Rate is decreased
compared to 2001-’02 and 2005-’06 because Dhanhar Masala
gives extra benefit to workers. Like bonus, gift and etc. So,
Absenteeism Rate is decreased about 3%.

4. PRODUCTION DEPARTMENT
Activities of Production Department

Process Layout / Product Layout
Technology used
Machinery Operation Stores
Quality Control
Plant Location

Structure of Production Department
Head of Production Department
Production Manager
Assistant
Worker
Introduction
Meaning of Production:-
“Production is the process of converting the
raw material and for the other input the product for further

production of the finished goods or services so that utility of input

is created or enhanced and the need of customer are satisfied.”
Example: - Consumer goods, industrial goods, Services of
transport, Medical treatment, Education, Insurance, Banking etc.
Definition of Production Management: -
“Production Management means creating and
maintaining environment in which individual working together in
group willingly contribute their best to produce to satisfy the
goods and services by optimum utilization of raw material and
other input so as to timely satisfy the need of customers.”
Activity of Production Department
Production Management includes all the right

from the procuring of raw material and other inputs to their
conversion into marketing output.
There are various activities of the
production department in the Dhanhar Masala, Which
are below here in short.
1. Product Selection and Design
2. Process Selection and Planning
3. Location of Plant and Facilities
4. Material Handling
5. Capacity of Planning
6. Production Planning and Control
7. Purchasing and Inventory Control
8. Quality Control
9. Maintenance and Replacement of Machinery
10.Cost Reduction and Control
11.Incentives and Extra Benefits

So, there are different eleven types of activities

of the production department in the Dhanhar Masala Pvt. Ltd.
2. Process Layout / Product Layout: -

Location of Plant: -
Plant location is mainly selection on
those areas where the business should well establish for maximum
utilize of economy and effectiveness. It is an important decision in
long term.
Location of plant is most important
factor in a private sector. There are many factor are affected e.g. if
the place was outside the city then they are free from paying octroi
for their product, various taxes, labour transmission facilities,
living home to the labour or employee like house, cottages etc., for
the raw material storage facility to the certain extent to run
production smoothly. When plant or site is located in near or in the
city they have no expense to rent for the employee or labour house,
available good infrastructure in compare to the far from the city
area, less transport cost, easy distribution of goods in less time.
Dhanhar Masala plant is located at no far from the city and not
area near to the city. It is located in industrial zone of fulpada in
this area they get benefits from the government and electricity,
water, road, communication channels.
Dhanhar Masala chooses this area because there are

available enough raw material with proper quality & quantity.
Easy distribution of their product & profitable to the industry.

They are not thinking for the changing the site. They want to buy
or take on the lease new site near the old plant.
The population is increasing day by day and residential

area will come near the industrial area so that Dhanhar Masala
more concentrate on environment not harmful to the their citizen.
The company will think to establish new plant far from to the
residential area.

Production Department
Process Layout / Product Layout:-
Process layout / Product layout
plant depend in 10 types of production department and the process
layout / product layout are as follows.
Flow chart of manufacturing Masala
Plastic / billet
Arrival
Testing in Sent back to

Laboratory supplier
Charged in re-use
Furnace capacity
Intermediate
Work
Cooling Room
Cutting To length
Inspection
Storage &
Dispatch
Plastic/Billet:-
Plastic/Billets is a one types of raw-materials.
The plastic/billets they purchases in different places for the
different item and he is delivery to the other places and cities,
which are uses Masala. All the industries have too very big stock
in plastic/billets.

Reheating Furnace:-
Reheating furnace means return to

plastics and furnace. The company foremen or worker supplied for
the plastics and billets to the furnace. The cranes carry to the
plastics and billets goes to the put the conveyer belt, so conveyer
belt pick up the plastics and billets goes to the reheating furnace.
So plastics and billets go to the roughing mill.

Intermediate Work:-

Intermediate mill always work

in roughing mill work finished. Actually intermediate mill means
the joint for the plastics and billets. Intermediate mill the worker
hand a one Masala packaging and he was push the out of roughing
mill stock and supplied in intermediate mill and the intermediate
mill joint the packaging and fixed cuts. So intermediate mill means
a one types of joint the packaging. The intermediate mill is a very
high degree temperature. So, worker very carefully works in
intermediate mill.

Finishing Work:-
Finishing mill means the finished the
Masala Packaging. The Industry is always very carefully to the
finished for the packaging. The Industry always demands in the
market and he was not rough product for the customer. So,
Industry is always very carefully for the finishing mill and the
different product for other Masala’s Industry / companies.

Finishing mill is always in the very carefully work for the Masala
packaging.
Cooling Room:-
Cooling bed means cool the Masala

packages. Sometimes the package produce in very large number so
Industry cooling room also facilities provide for the factory.
Cooling room work only the cool the packages. The cooling room
very long and very big many workers work on the cooling room.
The workers pick up the Masala packages and put the cooling
room.

Inspection:-
Inspection means a one types of checking for
the packages. The Industry checks the packages a briefly. The

manager is only view to the checking of packages. The Industries

have one manager appointment to the check of packages. The
manager is checks the packages after goes to the packages in the
storage & dispatch. Inspection plan is fully automatically. The
foremen provide to the machinery and check the packages and the
machinery provide document about in packages how many
unpolluted. These facilities also provide the companies for his
customer.

Storage & Dispatch:-

Storage & dispatch means the
store the Masala’s packages and transporting to the packages.
Storage means the companies store the packages and the customer
gives the order for the different item of the masala. So, Dhanhar
Masala calls to the transporter and gives the dispatch for the
packages. Any times the Industry gives self delivery for the
product. So the very big place for the storage & dispatch and
Industry also selected worker for the storage & dispatch.

3. Technology used:-
Technology is play very important role of the any Industry
and Company. Dhanhar Masala used latest technology in the

factory to produce the different types of Masala and display in the

market of whole Gujarat and its selling & result is nice for the
Dhanhar Masala. So, Dhanhar Masala used “INPACK
FABRICATION PVT. LTD.” technology. Dhanhar Masala used
many other machines and technology which are below here:
Dhanhar Masala used;

High speed servo Driven Auger Filter(With Rexroth Bosch
System)
High speed Volumetric Viscous Filler to pack oils
Servo Driven Auger Filler(With Siemens System)
Volumetric Cup Filling(to pack free flowing Granules)
So, Dhanhar Masala uses these four types of machines of the
“INPACK FABRICATION PVT. LTD.”


Company uses modern machines and techniques to

maximize their production and to minimize the waste. Company
uses only Indian Machines.
4. Plant Location, Controls of R.M. in

Progress & Finished goods:-
Location:-
Plant location is mainly selection on those areas
where the business should well establish utilize of economy and
effectiveness. It is an important decision in long term.

Location of plant is most important factor in a

private sector. There are many factors are affected e.g. if the place
was outside the city then they are free from paying octroi for their
product, various taxes, labour transmission facilities, living home
to the labour or employee like houses, cottages etc., for the raw
material storage facility to the certain extent to run production
smoothly. When plant or site is located in near or in the city they
have no expense to rent for the employee or labour houses,
available good infrastructure in compare to the far from the city
area, less transportation cost, easy distribution of goods in less
time.
Dhanhar Masala plant is located at no far from the city

and not near to the city. It is located in industrial zone of Surat at
A.K. Road. In this area they get benefits from the government and
electricity, water, roads, communication, channels. Dhanhar
Masala choose this area because there are available enough raw
material with proper quality & quantity. It is easy distribution of
their product & profitable to the Industry. They are not thinking
for the changing the site. They want to buy or take on the lease
new site near the old plant.
The population is increasing day by day and

residential area will come near to the industrial area so that
Industry more concentrate on environment not harmful to the their
citizen. Dhanhar Masala will think to establish new plant far from
to the residential area.
Raw Material:-
Dhanhar Masala uses the raw material to make
a product like plastic/billets. Every product has a different raw
material. Dhanhar Masala use raw material given below:
1. Plastics / Billets
2. Different Masala raw material comes
different places
Procuring the raw material:-
The need of raw material exist when Industry receives order
from the customers. For that Industry makes contract or agreement
with the suppliers of raw material. Contract may be duration for
the one month or one year. Industry purchases the raw material in
the local market.
According to the agreement
duration of contract, price of raw material, quality of raw material,
and in some case quantity is also specifying, Party’s name, and
suppliers name mention in the contract.
Raw-Materials are goods which
have not yet been committed to production in a manufacturing
firm. They may consist of basic raw materials or finished
components, in many cases of finished goods of one Industry
becomes the raw materials of another Industry.
E.g.:- The finished goods of
Dhanhar Masala are the Masala, which becomes the raw material
from different places for different Masala.
All the plastics Raw-material comes from the Bombay
Rock Salt’s Raw-material comes from the Pakistan(Lahore)
Hing’s Raw-material comes from the Afghanistan(Iran)
So, Different types of Raw-material are uses in the Dhanhar
Masala and it comes to many far and different places.
Finish Goods:-
After come raw materials for different types of
masala, then work in progress to the end of finished goods.
Finished Goods are completed products awaiting sale. Finished

Goods are the final output of the production different kinds of

inventories depend upon the nature of the business.
E.g.:- Dhanhar Masala will have high levels of
all the three kinds of inventory, while a retailer or wholesaler will
have high level of inventories of finished goods only.
Inventory Control
Definition of Inventory Control:-
“Inventory control means the decision of the firm is
to the extent to which inventory can be economically stored.”
Inventory Control:-
Dhanhar Masala Industry they are not able
to engage large amount of money in stock. So, industries plant
manager has to handle the inventory of raw material, semi-finished
goods etc. There is no such type of different department to manage
the inventory. According to the manager who handle the inventory,
in early stage there were no speedy transportation and
communication so they have to consider the lead time for the raw
material required that’s why the company need to maintain
inventory of raw material and finished goods or semi-finished
goods. Today there is a greatest change in the IT sector, transport
facility etc. so, there is less need to maintain inventory. Now the
raw material is available in the same place or near by place, in case
raw material purchased from outside the other city then it is
available in one or two days. So, there are fewer burdens to bring
the stocks.
Dhanhar Masala Industry maintain stock for
the safety purpose so production runs in a smooth way. The stock
keeps for the using it crisis time. So, production not stop.

5. Quality Control
About Quality:-
Quality refers to the sum of attributes or
properties that describe a product. These are generally expressed in
term of specific product characteristics such as length, width,
colour, etc. these characteristics must be quantitatively expressed
in terms that can be objectively measured or observed.
About Quality Control:-

Quality Control refers to those
activities used to refers to a specific organisation within the
industrial enterprise which is assigned responsibility for many of
the activities necessary to achieve quality objective.
Methods of Quality Control, which are uses in the Dhanhar
Masala.
There are four method uses, which are given below:-
1. Inspection
2. Quality Circles
3. Total Quality Management (TQM)
4. Statistical Quality Control (SQC)
Most of use Inspection and Statistical

Quality Control by Dhanhar Masala in the factory.
Quality Control:-
Customers of any industry first take care
and try to know about the quality of the product. It happens in this
industry also.

The industry produces a product as per the

customer requirement and the standard given by the customer. For
quality control company takes sample in each and every stage of
production and check the quality of given order. These samples
send to the customers and if they approved the sample then and
only then the order being processed. Quality check in the
Industries own laboratory which is located in their plant.
Laboratory is located in the plant so it comfortable to test and
transport the sample.
If customer reject the sample then second
time process is being with improvement and with care of consider
the requirement of customer. Then it sends to the customer again.
In present time quality control has been one
of the most important factor to boost the product in the
competitive market. Every stage quality checking, reaction testing
becomes an important factor. Just starting the batch from the first
reaction time to time testing is carried out in between the process
quality control and check is containing carried until the product
comes out into the final form especially in dye stuff. Certain
quality parameters are important like solubility of materials,
insoluble particles of material, isomers, so contained other foreign
particles transparency of the material and strength of the material.
5. FINANCE DEPARTMENT
Budgeting & Planning

Taking Loans (Sources of funds)
Issuing Shares (If Applicable)
Providing funds to Different Department
Balance Sheet & Annual General Report
Working Capital, Cash, Inventories, Receivable etc.

Head of
Finance
HiteshBhai
Wankawala
Introduction
A firm needs to manage its resources effectively and
efficiency to achieve its objectives. The managing of resources in
an effective manner is possible only when the management work
out the future courses of action in advance and takes decision in a
professional manner. Financial Planning should estimated the
resources required to carry out operations and determine how far
these resources can be generated internally by the firm itself and
how far they will have to be obtained externally.
Organization Structure of Finance Department:-
Chairman
Directors
General Manager
Accountant

Cashier
Clerk
Accounting Policies:-
 Methods of accounting:
The company follows mercantile
systems of accounting as mentioned in the companies act, 1956.
Fixed assets:
All fixed assets are recorded at cost of acquisition
including installation cost wherever applicable excluding motivate
amount.
 Depreciation:
It is being provided accounting to the companies act
1956 considering written down value method using single shift
working in respect of plant and machinery. In respect of other
assets depreciation is provided according to rates prescribed in
schedule IV of the company’s act 1956 in case of addition during
the year. Depreciation is provided of the prorate basis.
 Inventories:
Inventories are valued at the cost or net realizable
value whichever is lower.
 Income and expenses recognition:
Income and expenses are
accounted for an accrual basis.
Miscellaneous expenditure:
Miscellaneous expenses are
amortized over a period of 10 year.

1. Budgeting and Planning
Definition of Capital Budgeting:-

Capital Budgeting
may be defined as decision making process by which an
organisation evaluates the major investment proposals keeping due
consideration for the,

 Amount needed for Investment

 Amount available for Investment
 Amount that can be acquired from different sources
 The cost of raising funds
 Future cash Inflows
Types of Capital Budgeting in the Dhanhar

masala:
1. Introduction of a New Product
2. Changing in Method of Production
3. Replacement
4. Business Expansion
5. Substitution of Machinery for Labour
Definition of Financial Planning:-

Financial Planning is primarily a statement
estimating the amount of capital and determining its composition.
It includes,
1. The development of the form and proportionate amounts of
securities.
2. Develop the best plan to obtain the require fund.
3. Analyse control points which need to be established.
4. Estimated the requirement of financial resources in time
with its operating programme.
5. Established control points which need to be established.
Advantages of Financial Planning in Dhanhar

Masala:
Economical procurement and profitable use of funds
Elimination of Waste

To maintain Effective Control

Modern business is very complex. Financial Planning
helps management to avoid waste which possible by maintain
close co-ordination between various functions of the firm.
Financial Planning provides broad guidelines for
procurement, allocation and distribution of fund. Control can be
exercised in an effective manner when actual are compared against
these guidelines.
In the Dhanhar Masala Financial Planning is very
strong. Finance position level is maintained for the future.
Factor affecting for the Financial Planning in the

Dhanhar Masala:
 Nature of business
 Attitude of the Management
 Alternative sources of finance
Steps in Financial Planning, which are taken by

the Dhanhar Masala:
 Review and Analysis of past performance
 Establishing objectives
 Financing
 Consequences of Financial Plans
2. Taking loans (Sources of funds)

Dhanhar Masala requires and uses Short Term
Capital for running the business. Short term capital of finance its
working capital requirements. Dhanhar Masala taking no loans
by any Industrial bank.

Dhanhar Masala use only Retained Earnings in the

business firm.
Depreciation charges and retained earnings represent

the internal sources of finance available to the Industry. If the
depreciation charges are used for replacing worn-out equipment,
Retain Earning growth the only internal sources for financing
expansion and growth. Industrial normally retain 30% can to 60%
of profit after tax for financing growth.
Advantages of the Retained Earning in the

Dhanhar Masala:
1. Retained Earnings are readily available internally. They do
not require taking to outside.
2. Retained Earnings effectively represent effect of additional
equity in the firm.
3. There is no transfer of control when a firm relies on retained
earnings.
4. The capital appreciation that arises as a sequel to retained
earnings is subject to a lower tax rate.
5. Reinvestment of profit may be convenient for many
shareholders as it relieves them to some extent of the
problem of investing on their own.
3. Issuing Shares
Dhanhar Masala has no Issuing Shares and no applicable
shares.

4. Providing funds to Different Department

Dhanhar Masala industry providing funds to
different departments in their budgeting programme.
 8% for Marketing Department
 31% for Capital Budgeting
 3% for Employment Welfare
 58% for Wages & Salary
5. Balance Sheet & Annual General

Report

6. Working Capital
Working Capital of a company is like the blood
to human body. It is the most vital ingredient of a business.
Working Capital management if carried out effectively, efficiently
and consistently will assure the health of an organization.
Meaning:-
Working Capital is defined as the excess of current
assets over current liabilities.
Current assets are those assets which will be
converted into cash within current accounting period or within the
next year as a result of ordinary operation of the business. They are
cash or near cash resources. This include,
 Cash and bank balance
 Receivables
 Inventory
 Raw material, stores and spares
 Work in progress
 Finished goods
 Prepaid expenses
 Short term advances
 Temporary investment
The value represented by these assets

circulates among several expenses. Cash is used to buy raw
material, to pay wages and to meet other manufacturing expenses.
Finished goods are produced. These are held as inventories. When
these are sold account receivables brings cash into the firm. The
cycle starts again. This is shown in the following diagram.

Cash
Inventories
Circulation of Current Assets:-
Current liabilities are the debts of the firms that
have to be paid during the current accounting period or within a
year. These include,
➢ Creditors for goods purchases
➢ Outstanding expenses
➢ Short term borrowings
➢ Advances received against sales
➢ Taxes and dividend payable
➢ Other liabilities maturing within a year
Operating Cycle:-
Formula to calculate Operating Cycle is,
Operating Cycle = R+W+F+D-C
Raw material storage period:

R = Average stock of raw material
Average raw material consumption per day
= 15 days
Finished goods storage period:
F = Average finished stock inventory
Average cost of goods sold

= 1 days
Debtors collection period:
D = Average debtors
Average credit sales per day
= 36 days
Creditors payment period:
C = Average creditors
Average credit purchase per day
= 20 days
Operating Cycle = R+F+D-C
= 32 Days
Internal Audit Policies:-

Internal audit system is very
important for any industry. By the audit, management can know
where the company stands. This is the best way to control and
remove deices. Management can also easily know whether they
are earning profit or incurring loss.
The balance sheet and profit and
loss a/c of Dhanhar Masala is audited every year at the end of the
march.
An audit of Dhanhar Masala is
conducted in accordance with auditing standards generally
accepted in India. Audit is planned and performed to obtain
reasonable assurance about whether the financial statements are
free of material misstatement. An audit include examining on test
basis evidence supporting the amount and disclosure in the
financial statement. An audit above includes assessing the
accounting principles used significant estimating made by the
management as well as evaluating the overall financial statement
presentation. Here auditing is done half yearly.

The balance sheet and profit and loss a/c of company

with the accounting standards referred to in subsection 3-C of
section 211 of the companies act 1956.
Types of Payment to auditor Amount (Rs.)

Audit Fees 15000
Tax Audit Fees 5000
Other Matters 5000
Services Tax 1250
Methods of calculating Depreciation:-

In Dhanhar
Masala depreciation is being provided according to the companies
act 1956 considering written down value method using single
working in respect of plant and machineries. For other assets
depreciation is provided according to rates prescribed in schedule
VI of company’s act 1956. In case of addition during the year
depreciation is provided on prorate basis
Cash
Meaning of Cash:

As Sydney Robbins, “A business wants to

get hold of in the shortage possible time, but to keep the least
possible quantity on hand.”
On the other hand, “If the organization is
always running with shortage of cash, its trading and
manufacturing operations will be disrupted and ultimately
profitability of the firm will be affected.”
Cash Management Involves the following four

factors:
1. Ascertainment of the minimum cash balance and
controlling the levels of cash.
2. Controlling cash inflows
3. Controlling cash outflows
4. Optimum investment of surplus cash
There are four level of the cash controlling,

which is below here:
1. Preparing cash Budget
2. Providing for contingencies
3. Consideration of cost of shortage of cash
4. Availability of other sources of funds
Cash Budget
Meaning of cash Budget:-

Cash Budget is a, “statement

showing the estimated cash inflows and cash outflows for a
particular period.”
On the other hand, “Cash
Budget is a plan showing cash position of business at different
time intervals during the year.”
Advantages of Cash Budget in Dhanhar Masala:

○ Planned use of cash
○ Provision for Capital Expenditure
○ Investment of surplus funds
○ Dividend policy
○ Profitable use of Cash
○ Timely payment of Debts
○ Arrangement for obtaining funds
○ Useful for control
○ Helps Co-ordination
○ Easy to obtain funds
Limitation of Cash Budget in Dhanhar Masala:

 Estimates are difficult
 Carelessness in implementation
 Rigidity
 Expensive
Method of preparing Cash Budget in Dhanhar

Masala:
• Receipts and Payment Method
• Adjusted Profit and loss Method

Receivables
Meaning of Receivables:-
When a firm sells goods for
cash, payments are received immediately and therefore no
receivables are credited. A firm grants credit to its customer so that
its sales are not lost to competitors.
According to Hampton,
“Receivables are assets accounts representing amounts owed to the
firm as a result of the sale of goods / services in the ordinary
course of business.”
Receivables:-
All the companies would like to sell their
products for cash, but the pressure of the competitor and the force
of the customers persuade to sale them on credit hence the
companies grant credit facilities to increase the sales. Those
customer who can’t borrow from other sources or find it very
expensive or inconvenient use the credit facilities.
The credit period provided by Dhanhar Masala
industry is usually up to 60 days after the sales date if the product
is sold by credit, finished goods get converted into accounts
receivable in books of the seller. While most of the products are
sold by cash but if sold in credit the company charges higher price
on the basis of the credit period allowed.
Cost of Maintaining Receivables:-

1. Capital Cost
2. Collection Cost
3. Administrative Cost

4. Difficult Cost
Objectives of Maintaining Receivables:-

1) To Achieve Growth in Sales
2) To Increase Profits
3) To Meet Competition
Some formula’s forecasting of Receivables:-

Estimated Receivables = Estimated Sales
Accounts Receivables Turnover
Accounts Receivables Turnover = 360 days

ACP
Here, ACP = Average Collection Period
Conclusions
After completing our two months of summer
training in Dhanhar Masala, which was a golden opportunity
provided to us by the university and Dhanhar Masala Industry to
visit each department of the company and get practical experience
and knowledge in the field of marketing, HR, production and
finance which helped us to prepare the project. Hence after
preparing the project we got knowledge about the management and
over all handling of the company.
The preparation of the project was been made easier
due to the co-operation of Mr. Jigneshbhai and Mr. Hiteshbhai by
providing each and every detail of the company and the
opportunity to face the real business environment. We are also

grateful to Dhanhar Masala Industry for their co-operation in

preparing the project.
SWOT Analysis
Strength:-
Company has a many strength points but one is his
product techniques and marketing strategies to compete with its
competitors. Company has a control over the personnel department
the base of the finally strong. Dhanhar Masala produce Masala to
Best Quality and Chipper Price is the strong point of the
industry.
Weakness:-

Company has a one weak point and it is a

disability to produce on time. It become delay because maintain
quality.
Opportunity:-
Company increase its attention to cost and
reduce it, and enter in other state of Indian state of Indian market
and global market like USA, UAE, etc.
Threat:-
Company may face big problem created by the other
Masala industry because its cost is too low and it covers the
Masala market.
BIBIOGRAPHY
Annual report of Dhanhar Masala industry
Reference Book:-
Marketing Management – Philip Kotler
Finance Manager - Bhagvati & Pillai
Production Management – Ashwathpa

Personal Management - B.S Shah
Website:-
www.dhanharmasala. Com
www.managementprojects. com

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Dhanhar Masala Pvt. Ltd.

For the partial completion of graduation

Submitted to : Prof. V. B. Shah Inst. of Mgt.

Prof. V.B. Shah Institute of Management Page 1

I experess my deep sense of gratitude to “DHANHAR

I would also thanks all the faculty members of college to help

I would like to thanks with great pleasure on colleagues, who

Prof. V.B. Shah Institute of Management Page 2

Prof. V.B. Shah Institute of Management Page 3

This report has not been previously submitted

If we found to be guilty of not fulfilling the

Prof. V.B. Shah Institute of Management Page 4

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MISSION & VALUES

Prof. V.B. Shah Institute of Management Page 6

Sr. no. Subject Page

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The name “DHANHAR” itself can notes “MASALA”.

DHANHAR MASALA starting in the home place &

DHAN means “LAXMI”

DHANHAR names comes for the two

DHAN meams Dhansukhlal.

In 1990, a major milestone was achieved

Prof. V.B. Shah Institute of Management Page 9

When company started, it goes in the loss, but

Under the able guidance of the promoters, the

The company boasts of modern machinery

The reliability, flexibility, competitive

Prof. V.B. Shah Institute of Management Page 10

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Structure of Marketing Department

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Company include CNF (super stockist), Distributor, Shop keepers

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3. Political & Legal Environment:-

 Increase in the business environment:-

 Protection the welfare of the customer:-

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2. Products of the Industry (Product

Product Product Name

10 Kitchen Hing Masala

Product no. Product Name

14 Panjabi Gravy Masala

20 Biryani Pulao Masala

Prof. V.B. Shah Institute of Management Page 19

27 Tandoori Chicken masala

So, there are lot of item production in the

Prof. V.B. Shah Institute of Management Page 20

Product Mix has three main

Width of the product mix is concerned with the

The Following situation indicates lack of optimization of

Importance of product mix in Dhanhar masala.

Prof. V.B. Shah Institute of Management Page 21

Profit Maximization, With the help of product mix

Maximization of sales, in this point to improving in

3. Packaging & Labeling:-

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We can define Packaging as, All the

The Packaging has three levels, they are following:-

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