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CHAPTER 1
INTRODUCTION
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1.0 INTRODUCTION
Eastern Condiments Pvt Ltd. is one of the FMCG Company which produces and
markets spices and food products. It offers spice powders, spice mixes, massala blends,
pickles, breakfast powders, whole seeds, beverages, rice powders, ready to cook
products, and other products. The company sells its products through distributors. It
exports its products to Europe, the United States, and the Middle east, and internationally.
The company was founded in 1989 and is based in Kochi, India with additional offices in
Mumbai, Delhi, and Bangalore. Eastern Condiments Pvt Ltd. operates as a subsidiary of
Eastern Group.
The shift in the consumption trend toward natural products has also contributed to the
increased global demand of spices and culinary herbs. Spice and derivatives market is
booming because these products find applications in a number of industries including
pharmaceutical, medicine, beverages, food processing, personal hygiene products to
name a few.
Developing countries especially in the Asian continent are the major producers of
variety of spices. A large percentage of international and domestic trade takes place in the
dried form. India, Indonesia, China are few of the prime producers of a variety of high
quality spices and also significant contributors to the global spice trade.
India is one of the prime producers and suppliers of raw herbs to USA, UAE etc.
This is a labour intensive industry; therefore producers must have a sound knowledge of
the methods and processes involved in the production of herbs and spices.
USA is the major importer followed by China, Vietnam, the UAE, Malaysia, Saudi
Arabia, the UK, Germany, Singapore and Sri Lanka. Exports to the US stood at around
US$ 340.3 million followed by China at US$ 324.57 million in 2012-13.
India is popularly known for being a source of cloves, Indonesia has supplied the global
market with cinnamon and nutmeg and China is the leading producer of ginger.
The global demand for a variety of spices has continued to rise in the past few years
owing to the vast rise in the consumption of convenience foods, snacks, and
confectionary. The widened market for processed and ready-to-eat food products has also
had a vast positive impact on the overall global consumption of a variety of spice.
This report on the global spice market presents an extensive account of the present
state of the market and forecasts the way the market’s will evolve in response to present
circumstances over the period between 2016 and 2024. The report includes vast details
regarding the present and past sales across key product segments and regional markets,
the various growth factors expected to drive the market in the future years, and the
challenges capable of arresting the growth of the market over the forecast period.
On the basis of product type, the global spice market can be segmented into cardamom,
pepper, cumin, clove, and ginger.
On the basis of application, the market can be segmented into sauces, soups, frozen food,
meat, convenience foods, poultry food, and bakery.
On the basis of geography, the report segments the global spice market into Europe,
North America, Asia Pacific, and Rest of the World (RoW). Of these, North America is
presently the most attractive regional market for spices, followed by Europe, Asia
Pacific, and the RoW. Rising awareness regarding the medicinal properties of spices will
continue to keep the demand for spices high in North America over the forecast period as
well. The region is expected to gain traction and witness high growth in terms of revenue
over the report’s forecast period.
The Asia Pacific market also holds immense promise for spices owing to the flourishing
food and beverages industry in the region. A vast surge in the consumption of fast foods
across countries such as India and China will also drive the market for spices in the
region. China is the leading country-wise market for spices in Asia Pacific, followed by
India. Owing to the presence of vast growth opportunities, several international spice
companies are focusing on expansion strategies in the region, expected to make the Asia
Pacific spice market much more mature and increasingly competitive in the near future.
Company, Kerry Group Plc, Ariake Japan Company Ltd., Sensient Technologies, MTR
Foods Private Limited, Ariake Japan Company Ltd., Olam International, Worlee Gruppe,
DS Group, and Dohler Group.
India accounted for 46 % and 23 % in value of global spice trade. (Source: Spices Board
India) India accounts for 25-30% of world’s pepper production, 35 % of ginger and about
90% of turmeric production.
At present India produces around 2.5 million tons of different spice valued at
approximately 3 million US dollar, and hold the premier position in the world. Because
of the varying climate suitable for the spice cultivation almost all spices are grown in this
country.
In almost all the 28 states and six union territories of India, at least one spice is
grown in abundance. No country in the world produces as much variety of spices as
India.
During 2013-14, spices and spice products valued at US$ 2,267.67 million has
been exported from the country as against US$ 2,212.13 million in 2012-13, which is an
increase of 3 per cent.
During the period April-September 2014, India exported spices worth US$
1,152.08 million as compared to US$ 1,073.85 in the same period in 2013.In the same
period; cardamom registered a growth in value of 68 per cent from the exports. Other
spices with notable growth include coriander, cumin, pepper and curry powders with
rates of 52 per cent, 35 per cent, 30 per cent and 29 per cent respectively.
The Spices Board of India works towards the development and worldwide
promotion of Indian spices. It provides quality control and certification, registers
exporters, documents trade information and provides inputs to the Central Government
on policy matters. It participates in major international fairs and food exhibitions to
promote Indian spices, apart from organizing various domestic events.
Indian spices exports in 2016-17 have been able to record strident gains in volume
and value. Spices exports have registered substantial growth during last five years,
registering a compound annual average growth rate of 10% in rupee terms and 5% dollar
terms of value and India commands a formidable position in the world spice trade.
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During 2016-17 a total of 9, 47,790 tons of spices and spices products valued
Rs.17664.61 crore ( us$ 2633.30 million) has been exported from the country as against
8,43,225 tons valued Rs. 16238.23 crore (us $ 2482.83 million)in 2015- 16 registering an
increase of 12% in volume,9% in rupee terms and 6%in dollar terms of value. As
compared to the total export target of spices fixed for the period, the total exports of
spices have exceeded the target in terms of both volume and value. Compared to the
target of tons valued Rs.15725.12 crore (us$2419.25 million) for the financial year 2016-
17 the achievement is 109% in terms of value and 112% in rupee and 109% dollar terms
of value.The following are the various statistics which shows the estimated exports of
spices from India during April- March 2016-17, item wise export of spices and spice
wise area and production.
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CHAPTER 2
ORGANIZATIONAL
ANALYSIS
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The Eastern Group of Companies founded by Late Mr. M.E. MEERAN, and it
was established in 1969.Mr.M.E MEERAN started his business activities with a
wholesale provision shop at Adimali and first name of the company was “Eastern
Trading Company”.In1975 Eastern agency started in Adimali town.
The “Eastern Condiments Pvt. Ltd started in 1991 with a dream, making good products
available to the common man at the right prices., is a pioneer in the state to produce
packaged curry goods powders, Masala powders, spices and coffee powder. Eastern
Condiments Pvt Ltd. manufactures spices and masalas. It sells South Indian powders,
such as Rasam, Sambar, curry, pickle powder, and other spice powders through its shops.
And it was a growing company in India and also it was a largest manufacturer condiment
and it is one of the leading brands among the South India. The company sells its products
in Kerala and outside Kerala. In the early stages the company exports its products Saudi
Arabia and Arab Emirates and now the company exports its products in various parts of
the world like Middle East, U.K, U.S.A, Australia, Germany, Canada etc.
Eastern Condiments Pvt. Ltd. is a well-established name and Kerala’s largest
manufacturer and market leaders with a market share of 60-65% in Kerala and one of the
leading brands in south India. A name that will hold its own for years to come as the
worthwhile manufacturer, distributers and exporters of the quality network and the
blended spice powders and spices. .
2.1.2 MANAGEMENT
The group is managed by a team of professional and family members. Late Mr.
M.E. Meeran is the founder of Eastern group. Mr. NAVAS MEERAN is the chairman
and the managing director is Mr. FirozMeeran. In addition to that Mr. M.E Muhammed,
Mr. S.M. Muhammad holds the Board of directors. For administration there is corporate
office at Ernakulum.
The company started functioning only with few workers. Now it is grown to more
than 2900 employees, they are working with one heart and soul for the achievement of
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the goals of the organization. The company started functioning only with 25
employees. Now it is grown to more than 2900 employees, they are working with one
heart and soul for the achievement of the goals of the organization. Mrs. Nabeesa Meeran
playing a key role behind the success of the Eastern Group; she has been the principal of
the Eastern Public School Adimali.
connecting all the units situated in India and other foreign merchandising hubs in India
and United States.
2.1.10 PURCHASEDEPARTMENT
The purchasing department will be responsible for providing the materials,
components and equipment required to keep the production process running smoothly. A
vital aspect of this role is ensuring stocks arrive on time and to the right quality.
Performance of a manufacturing firm always depends on the efficiency of its purchase
department. The various raw materials needed for the production is purchased by this
department. If the materials are purchased at right time at the right quality from the right
suppliers it results in production of materials as per the request of inventory control
section. Mainly eastern is purchasing the products from the reputed vendors and the
import goods or raw materials from countries like Srilanka and other states of Kerala
such as Gujarat, Tamilnadu, and Karnataka. In the purchasing department about 40
employees are working.
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PURCHASING PROCEDURE
Evaluation of existing suppliers for raw materials
This is the first step in the purchasing procedure. The evaluation of the suppliers is
mainly done on the basis of rating them. There are mainly three types of rating methods
they are;
Quality rating
Supply rating
Delivery rating
QUALITY RATING
Quality rating is done on the basis of the quality of the raw materials before
purchasing it. The raw materials are tested by the quality control department and make
sure that the raw materials are of best quality and non-hazardous.
SUPPLY RATING
The supply rating checks the supplier’s ability to supply the raw materials at
right time.
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The rating is done on the basis of a quality technique; the maximum mark given is 15,
which is given to the supplier who supplies the raw materials on or before the
prescribed time. The total mark is calculated on 70 and it is given to the accepted
suppliers.
DELIVERY RATING
This is calculated on the basis of the correct time of the delivery of the materials
Registration assessment of potential suppliers
Purchasing order
Purchasing
Verification of the purchases products
DIVISION OF PURCHASE
In Eastern the purchase can be done in five small divisions. The purchase department is
divided into small groups because of convenience. The five divisions in purchase
department are given below.
Packing division
Product mainly deals with purchase of packing materials. Packing materials are
purchased from Leets, Reliance, and Omni.
Managing Director
FH Procurement
Asst. Manager
Senior Officers
Officers
Figure 2.2
Structure of purchase department
Source: Company records
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MANAGING DIRECTOR
FH TECHNICAL
MANAGER TECHNICAL
ASST.MANAGER
SR.OFFICER
SR.MICRO SR.OFFICER
BIOLOGIST TECHNICAL IP& C
MICRO
OFFICER OFFICER
BIOLOGIST
Figure 2.3
Structure of quality department
Source: Company records
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PROCEDURE
They make plans according to the data provided by the marketing department for
the coming period. Based on this they give instructions to purchase department and
production department. They plan for 3 months later it divided on monthly basis and
finally supervisions in production scheduling on weekly basis. Production is according to
the basis of the requirements and will depend on seasonal demand. The total number of
employees in this department is 25.
MANAGING DIRECTOR
FH MANUFACTURING
MANAGER PPC
OFFICER PPC
Figure 2.4
Structure of PPC department
Source: Company records
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The first step in the production takes place both at Adimali and Theni where the
raw material (chilly, turmeric, coriander) needed are purchased in bulk are cleared,
roasted, crushed, powdered and packed and dispatched to Adimali for further packing.
The distribution is handled by the company itself.Eastern Condiment deals with
production and packing of curry powders, masalas, instant pickle powder and processing
of pickles. The company has a production capacity of 12 tons per day. The company at
Theni has a production capacity around 20 tons per day.
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From the production point of view, latest techniques are used in preparing powders.
Producers like steam sterilization are followed to maintain hygiene.
Statutory Quality parameters are employed in every sphere of production. To ensure that
the spice reach the consumer in fresh conditions at a minimal cost, the company follows
international packing standards to protect, preserve and presents products. For bulk
packing, the VACCUPAC system is used where in products are packed in vacuum, thus
protecting the powders from fungal infection, moisture, oxidation etc.
Production function performs according to instructions from the PPC. PPC gives
monthly indent which is converted in to weekly plans by the production department. A
stock of goods for 3 days production is kept with the department in case of contingencies.
In production a normal waste of 2 % to 5 % is expected. All details regarding production
are given to PPC daily. The department has 14 vehicles for the purpose of transferring
raw materials. The department has around 750 workers. The production is dependent on
the skill and experience of the workers. The productivity is around 75%.
QUALITY ASSURANCE
The company follows stringent hygienic measures which are applied with regular
laboratory testing. The Indian spices board with their spice house certification has
recognized the company’s obsession with quality and hygiene. Eastern has also achieved
the highest ranked approvals for quality, the Hazard Analysis Critical Control Point
(HACCP), ISO 9002 certification and ISO 22000 certification.
The company ensures that superior standards are at every level- right from
processing raw materials to packing the final product. Old methods of powdering using
new technology are what the company believes in wooden spatulas are used to mix the
powders and huge aluminium vessels are used to roast spices, grinding is done at
required temperature, using micro pulverizes and the unique flavor lock technique, so that
the oils in the spices are conserved , giving out the right flavors.
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SCHEDULING
To analyze the demand for the past 3 months sales they will schedule the raw materials,
working time, number of workers needed and product capacity.
INVENTORY MANAGEMENT
The company didn’t manage inventory they will sell whatever they produced. They
manufacture only according to the demand by analyzing and forecasting.
SAFETY MEASURES
Workers are wearing aprons, masks, caps, while working in the production department.
The company provides necessary steps for preventing fire and natural hazards.
MACHINERY MAINTENANCE
The company keeping a separate department called maintenance department for the
maintenance of the machinery, automobiles, electrical etc.
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Chilies,
coriander, Cleaning Drying Roasting
turmeric &spices
Mixing Powdering
Packing
Marketing
Figure 2.5
Production flowchart
Source: Company records
PRODUCT STANDARDS
Eastern is the first company in India and second company in Asia got the ISO 22000
certification.
In the year 2000-2005 Eastern got the ISO certification 22000. The organisation shall
ensure the following basic requirements for the implementation of ISO 22000.
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The food safety hazards that may be reasonable expected to occur relation to product
within the scope of the system are identified evaluated and controlled in such a
manner that the products of the organisation do not directly or indirectly harm the
consumers.
Communicate appropriate information through the food chain regarding safety issues
related to its products.
MANAGING DIRECTOR
FH MANUFACTURING
CHLSED PKL
WORKERS WORKERS SUPERVISOR
WORKERS
Figure 2.6
Structure of Production Department
Source: Company records
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FH ENGINEERING
SR MGR
ENG & PROJECTS
MGR ENGINEERING
Figure 2.7
Structure of Engineering Department
Source: Company records
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Human resource is the real assets of an organization. If treated well, they can take
organizations to commanding heights. Organizations’ are generally driven by a set of pre-
determined goals. They employ physical, financial and human resources in order to
achieve goals. Organizations thus depend on people for their survival and growth. In a
similar way people need organizations. The success and failure of every company
depends upon its human resource. The vast majority of people work to support
themselves and their families. But people work for many other reasons other than
economic security, they want to gain recognition and achieve status or to test and stretch
their capabilities. It is a fact that the people are vital for the effective operations of a
company as human effort and brains are the main driving force behind the organization.
Personal management function should not be confused with the personal
department of an organization. Personal management function is performed by all
managers at various levels in the organization. Generally personal department is assumed
the operative function of employment, training, development and remuneration etc. These
functions are performed by human resource department. Employment of competent and
specialized persons at various levels is one important reason for the continuous success of
Eastern. Moreover employment of women at certain key areas of operations avoids
unreasonable labour problems to an extent. The key factor in the growth of Eastern is
mainly the good and healthy employer-employee relationship. About 2800 employees are
working with a mutual relationship in the organization. In eastern maximum 80% people
are women workers. The workers keep discipline in the organization and also they do the
works very carefully.
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SELECTION
Selection is the process of picking up individuals with requisite qualifications and
competence to fill jobs in the organization. In Eastern, the selection process is only
through direct interviews. The employees are transferred to different departments on the
basis of their skills and abilities. They conducting a test also but the test is conducted
only for senior position.
TRANINING AND DEVELOPMENT FOR EMPLOYEES
Training may be viewed as a systematic and planned process which has its
organizational purpose to impart and provide learning experiences that will bring about
improvement in an employee and thus enabling him/her to make his contribution in
greater measure in meeting the goals and objectives of an organization. The training
facilities are conducted by the senior HR and administration. All the personal shall be
aware of their roles and responsibilities in protecting product from contamination or
deterioration.
TRAINING NEED ANALYSIS
The training can be evaluated any of the 3 ways: Input, throughput and output.
The officer will evaluate the employee’s performance on the basis of result produced by
them and gives a report to the board for a particular period of time.
If the board is satisfied, he/ she will forward it to the top management by recommending
incentive or promotion. This procedure mainly happens between a periods of 6 months.
WAGE AND SALARY
The workers are paid in two types of wage system:
o Piece rate system
Under piece rate system of payment, wage is paid on the output produced and not on
time. The production goes up when wage are paid in according to piece rate system
payment. In the packing section they are following the piece rate system.
o Salary system
This mode of payment is applicable for the rest of the workers, which also includes the
loading and unloading workers.
NON MONITARY BENEFITS
The company provides a lot of non-monitory benefits to their employees. Some of them
are as following,
1. Transportation
Transportation is provided to the employees to different destination points and a
very small marginal amount is deducted from their wage or salary.
2. Personal protective equipment’s
Personal protective equipment’s like head covers, aprons and uniforms are also
provided to the workers in the packing section.
3. Medical insurance
The employees are provided with medi-claim policy, which gives free medical
insurance to the employee and his/her family. ESI coverage for the employees who is
having the salary below 21000 and for others regular medical insurance benefits.
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4. Pension scheme
The scheme has been formulated for those employees who have retired from their
work. All the employees are provided the pension with all the incentives as per the
statutory norms.
5. Annual medical check up
The employees are provided with free annual medical check-up facilities
6. Canteen facilities
Canteen facilities are provided to all the employees where they get free food
7. Tours and picnics
Tours and picnics are conducted once in a year which increases the motivations and
initiatives of the employees in additions to the fair and just wage incentive system.
For the effective administration and working of the company, weekly meetings are
organized to discuss various issues and working of the company. The chairman, the
managers &department heads are presented in the meeting.
FUNCTIONAL HEAD HR
SENIOR MANAGER
HR & ADMINISTRATION
ASSIATANT MANAGER
HR & ADMINISTRATION
SENIOR OFFICER
OFFICERS
WORKERS
Figure 2.8
Structure of Human Resource department
Source: Company records
RECEIVABLES&PAYABLES A/C
The company also has credit sale and purchase. They give bills to their debtors
and receive bills from creditors for credit dealings. The bills are transferred to cash within
short period. The main success behind the effective financial management of eastern I
that the very less bad debts they are having. In case of bad debts its very rare one. That is
somewhat because of the policies of the firm and their assessment of the retailers as well
as wholesalers. They are providing the credit facility to those who are dealing with the
firm from the starting period of the company.
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INVESTMENTS
The company invests on FDI on the basis of IRR. The US based firm McCormick
& company is invested in the firm around 26% of the total investment of the company.
SOURCES OF FUND
The main source of fund is from sales and overdraft, from Federal banks Adimali
branch. There is a 3 cores loan for Eastern; the profit is reinvested in Eastern. Also
company is having some of the shares as per the memorandum of association and the
prospectus issued by the company.
TAX PAYMENT
A separate department under the finance department called TAX department. Tax
payment is through e-filling in 15th day of every month. The company pays a sales tax of
18 crore per year.
MANAGING DIRECTOR
OFFICER OFFICER
Figure 2.9
Structure of Finance department
Source: Company records
DIRECT SALES
This peculiar feature of Eastern curry powders helped it to vary from other
companies. The group directly distributes the products to retailers in Kerala, from
manufacturer products goes to retailers then goes to end consumers. The company has
around 239 vehicles which go on around 78 routes covering the entire state. Marketing
department has 450 workers in Kerala market. A sales executive, sales assistant and
driver will be on each van to go for the sales. The sales executive collects orders and
bills. The sales assistant performs loading and unloading operations. For 10 vehicles there
is a senior sales executive. For eastern there is no brand ambassador. Based on quantity
purchased dealers get benefits. No commission is provided to any dealers. Chilli powder
is the most selling item of eastern. Training is providing to sales employees.
Company has ten depots, which the main ones are located at Kozhikode, Kottayam, and
Trivandrum Trissur&Okkal. Sales target is fixed only after looking the previous 3 months
sale. More sales are done in Kottayam (Dts). The sales executives for each route give the
orders to be dispatched to each sale depot.
He also takes care of the billing and cash transactions. After making a sale, a sale invoice
is made and the summary is given to the cash department.
After the delivery of goods, the vans return and by verifying the order form, the
stock is checked. The accounts are maintained on a weekly basis. The company has
around 40000 retailers. Mainly cash transactions are undertaken and credit facilities are
entitled to only around 200 parties.
A string of van carrying freshly powdered spice is a common sight on the
mountains. This is one of the important advertisement techniques of the company. The
advertisement through these vehicles has no additional cost. There are hundreds of
vehicles carrying freshly powdered spices distributing across the state. It gives maximum
publicity and advertisement to the company and the brand.
The meeting of the sales executive is held every week after they return from their
different routes. Here, every aspect of the weekly sales will be discussed, and any
problem arising can be bought to the notice of the management.
By direct distribution the company has achieved a lot of benefits. Some of them are as
follows;
They can deal with the wholesalers and retailers directly at their door step
The company can avoid the role of intermediaries in the distribution of the product.
It helps to avoid unnecessary commission, brokerage and other related expenses
They can maintain a good relationship with the wholesalers and retailers
The company’s own vehicle undergoing distribution aids to give an important
mode of advertisement in addition to the other media advertisement.
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Eastern Condiment has entered in to world market in the recent years. In India it is
capturing both urban and rural markets. In Kerala it is the market leader with more than
60-65% market share to almost all its products. In Tamil Nadu and Karnataka the
company holds 20% share and it is gaining strength.
It is also to be noted that 50% of the market is still using home made products; some of
the market is still untapped. So there is lots of growth potential for the economy.
PRICING
Eastern is the price leader in Kerala market. And its products have higher price when
compare with other products. But it is accepted because of its quality and good will.
COMPLAINT HANDLING
It is done on a weekly basis by the sales representatives as they are meeting the retailers
and customers directly and the complaints are collected. Later it will be reported in the
weekly meeting.
PROMOTIONAL ACTIVITIES
Company introduces some promotional measures like card scheme to motivate their
retailers. It uses advertisement for promotional activities. They also make some tours and
give awards to some of the retailers. Company is conducting dealers meet in a year. Now
the company is giving more importance for the promotions of EASTEA. Sales target is
fixed once in a 6 month and is hoping for 10% growth every year.
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MARKETING STAFF
ASSISTANT
MANAGERS
SALES OFFICER
SALES TEAM
Figure 2.10
Structure of marketing department (Kerala marketing)
Source: Company records
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OBJECTIVES OF IT DEPARTMENT
Ensure the protection and security of data
Minimize duplication of effort, services and resources
Eliminate inefficient and costly redundancy
Eliminate non compatible standards and architectures
Identify obstacles for departments wanting to move computing operations to the
division of information technology and solve it immediately.
The whole organization is computerized. All the departments are connected via networks.
Both local and wide area networks are use. Eastern uses ORACLE based ERP, which has
been customized to suit the needs of their particular organization. The networking is done
through a BSNL base line. It uses windows 7 as the operating system.
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The company has a good IT team for implementing the ERP (Enterprise Resource
Planning) which was started in the year 2001 and was centralized in the year 2005.
ERP enables fast transactions and systematic in all its functions. ERP also helps in
generating MIS reports which help in decision making. The package used in is ORACLE.
Intranet in provided among the various offices at Theni, Adimali, Chennai, Bangalore,
Hyderabad and Ernakulum. The network main server is situated at Ernakulum and all the
different divisions have their own domain to connect to the main server. The company is
now having its own mobile applications in order to monitor the daily distribution of the
goods. The problem that is being faced by the company is mainly the network errors.
Palmtec based systems which are popularly used in KSRTC for billing is being adopted
by Eastern for their retail and wholesale billing distributions. They use the barcode
technology for the maintenance of package of goods as a section.
The Eastern Condiment Pvt. Ltd is a fully computerized company. Licensed
software’s are used in Eastern. In which 150 machines are connected using four servers.
They are;
Data base server
Application server
Domain server
Backup server
The extent of computerization is done mainly on to considerations;
Considering the amount of data
Accuracy needed
The company has centralized data base password control to restrict unauthorized access.
IT department has a powerful back up facility. In each system a separate folder is created
for backup facility .Client user saves data into this folder. The user can access data only
when he knows the particular password and login ID.
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SYSTEM CONFIGURATION
RAM 2GB
HD 180 GB
IDENTIFICATION OF ERROR
It’s a fully centralized scanning process which is done from the corporate office
which will help the firm to work better and perform more effectively with proper
monitoring to avoid errors and maintain the proper status of the working.
SYSTEM PROTECTION
MS fore friend Antivirus used for system protection of the computer systems and
a well-established firewall is being followed by the company.
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MANAGING DIRECTOR
FUNCTIONAL HEAD IT
ASSISTANT MANAGER
SENIOR OFFICER
OFFICER
Figure 2.11
Structure of IT Department
Source: Company records
Australia, Canada,and UK. The company is also planning to enter like Japan and other
European countries. The major portion of the export is into Dubai. Each container has a
capacity of 12 tons and monthly 50-60 containers are exported. In the international
market the product is marketed through distributors on commission basis
Eastern Condiment Pvt Ltd is always maintaining high quality and effective
distribution in the overseas market too. The company has well equipped laboratory with
qualified and specialized chemist for quality checking. For exporting the Eastern
Condiments have branches at Okkal and Erumalappadi in Kerala. Stuffing and packing is
carried out here itself. The rest of the procedures related to exports are done at Adimali.
The exporting is increasing year by year. The export had 50% growth in the previous
years. The company is doing exports through shipment. Company uses its vehicles to
send products to Cochin seaport. The company is having an increased expiry of goods up
to two years.
Time required for transportation
- Dubai 5 to 7 days
- Gulf 15 days
- USA 1 month
- Europe 30 days
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For export Eastern has import and export codes. It also has spice board
registration for exporting spices. Each country has its own specifications and
requirements for the export product which has to be meet by the company before
exporting. All exports are done through Cochin seaport. Each container which is exported
will be checked before dispatch. About 500 products are exported. Some items like
pickles are meant only for export and are not available in the local market. The export
division of Eastern had a 50 % growth in last year. The turnover from exports alone for
the company was 50 corers. All the transactions are done in Dollars only, including for
Middle East and other countries
ACHIEVEMENTS
Eastern is the leading exporter of condiments from India. Eastern has received the
spices board award for the best exporter continuously for the last 12 years.
DOCUMENTATION PROCEDURE
All negotiations regarding the export procedures are done through banks. The
goods are dispatched at the Cochin seaport and the company meets the expenses from the
point of dispatch to the boarding point and the documents are handed over the bank.
The overseas distribution gives a purchases order to the company upon the
confirmation of the order with prices the documents such as invoice, packing list are
prepared and shall be approved by export manager and those documents are sent to C & F
agent along with the purchase order of the overseas buyer. On receipt of those documents
the C &F agent sends it to the customer’s authorities and obtains permission for stuffing.
According by the information regarding availability of vessel is communicated to
the company. Based on the information given by C & F agent, information about the
stuffing is given to the central excise authorization for stuffing i.e., the house stuffing
procedure. After stuffing, the details of shipments are sent to the overseas buyer for their
information
57
It is ensured that the C & F agent for onward submission to the bank prepare the
following documents and submit to the Director under copy to the manager (exports) for
verification and records of export marketing department.
Invoice
Packing list
Bill of lading
Bill of exchange
Certificate of origin
Health certificate
MANAGING
DIRECTOR
SENIOR MANAGER
EXPORTING
SR. OFFICERS
OFFICERS
Figure 2.12
Structure of Export Marketing department
Source: Company records
SERVICE TAX
Eastern is paying 12.36% as service tax
EXCISE DUTY
For some product Eastern has to pay excise duty, especially for plastic that is used in
packaging. The excise duty ranges from 2- 16%.
COMPANY SECRETARY
DEPUTY MANAGER
SENIOR OFFICERS
OFFICERS
Figure 2.13
Structure of taxation department
Source: Company records
60
2.2 MISSION
Unleashing potential and enabling tomorrow’s entrepreneurs.
VISION
Expand exclusive distributor network in India to over 5000 that is renowned for selling
our premium food products by 2020.
Top quality fabrics are used in the manufacture of King Richard brand shirts (utilizing
100% of cotton from India and European brands like Bergamo, Brisbane, Italian fabric
etc.).
2.3.7 EASTEA
In recent time the company launched a new product ‘East Tea’ from its product
line. “Taste and Strength in every sip”, Eastea - Premium blended tea, from Eastern has
just entered the market with its signature promise of taste and strength.
EFFLUENT TREATMENT
Anaerobic and aerobic effluent treatment plants are installed at all major spice and
grinding locations.
PRODUCT PROFILE
In our national economy, spices play a very virtual role and our country India is
considered to be the home of spices. The freshness and the purity of Indian spices and
spice powders have made it a favourite in India and all over the world. Spices are used as
flavouring agents in many countries. They improve the flavour and acceptability of
cooked food and make them more delicious. Eastern Condiments Pvt. Ltd. has varieties
of spices, curry powders and pickles in its product mix. The purity and freshness of
Eastern curry powders has helped to enter the customers mind and the products will
become a leading brand in Kerala.
Eastern curry powders popularly known as ‘Strong Masala‘are processed using
the unique flavour-lock technique. The best quality spices are powdered under stringent
temperature control, using micro pulverisers ensuring that the precious volatile oils that
give the flavour to the spice are preserved. Eastern curry powders are so pure and fresh so
that, use just half as much as any other for excellent taste.
Eastern curry powders export to various countries like Middle East, U.K, U.S.A,
Australia and Germany, Canada. Eastern has grown into a favourite in Indian home
across the world. Excellent quality and right pricing has become the winning formulae of
the Eastern Group. Spices play a very vital role in our national economy.
EASTERN PRODUCTS
Eastern Condiments Pvt. Ltd. has different varieties of spices, curry powders,
blended curry powders-Masala, instant pickle powders and pickles. The company’s
pickle market is mainly concentrated in exporting. The product is follows:
66
Eastern Rice
Spice Powders Blended Spice Eastern BASED
Beverages
Powders pickles PRODUCTS
(for breakfast)
Eastern
Adimalikappi
Turmeric Garam Masala Mango Puttupodi
(coffee)
Powders
Eastern
Eastern Black Kulambu Pathiripodi
Gooseberry packaged
Pepper Powder Masala S
drinking water
Eastern Ginger Pickle powders Appampodi
Mixed veg
Powder
Eastern Kashmiri Chambaputtupodi
Pavbhaji Fish
Chilly
Big jeera powder Channa masala Prawns Payasam mix
Methi powder Tandoori
Garlic
Masala
Green gram Chicken
Tender Mango
Masala
Special powder Chicken fry
Masala
Fish masala
Meat masala
Biriyani masala
Kebab masala
Egg curry
Masala
Chat masala
67
1,646,887,795
Net Current Assets 963,284,297
2,943,724,434
TABLE 2.3 PROFIT AND LOSS ACCOUNT FOR THE YEAR 2016
Less
Provision for diminution in value
of Investments
Provision for Doubtful Loan
Loss on Slump Sale of Tea
Division (See Schedule 12, Note
No. 19)
– Deferred Tax -
213,501,037
Less: Appropriations:
General Reserve 20,586,808
71
CHAPTER 3
POSITIONING OF THE
INTERN AND ROLE
73
MARKETING STAFF
ASSISTANT
MANAGERS
SALES OFFICER
SALES TEAM
Figure 3.1
Structure of marketing department (Kerala marketing)
Source: Company records
74
Almost 91 routes checked and submitted the mistake and the entire list to the senior
officer. Last day of the week I have got an opportunity to attend the sales executives
meeting.
Fourth week activity was to verify last year’s monsoon wonders scheme card.
Then next task was to verify the chicken massala scheme enter the details into the system.
Enter the unloading details to the system. By entering this they can be identified stock
differences. Take part in the weekly meeting.
Fifth week, visited the Theni production plant which is the largest production
plant of Eastern condiments. Got an opportunity to visit the storage house and production
plant, quality lab warehouse, dispatching of items etc.. After spending three days again
come back to Adimali plant and assist in verification of vouchers and enter the unloading
details to system.
Sixth week at Theni production plant, there is no marketing department but they
are carrying sales, this is under the logistic division. Logistic manager assigned me to go
for route sale in Thamilnadu region. Visited Thirunelveli, Kanyakumari, Marthandam,
76
Thenkassi and Senkottai for sales. Most of the sales activities carried out in
Thamilnadu through agencies, visited these agencies and deliver the products as per their
order.
Seventh week, route sales at Kerala region. Visited Kottayam depots and assisted
the sales activities. Almost fifty shops visited every day. Cash from sales keep the strong
room inside vehicle for first two days. The next day it will be deposited to the companies
account. Learned to operate the palmtec machine, for printing the bills.
Eighth week got an opportunity to visit the entire plant. In Adimali Eastern has
two plants one for the production of different massala powder and other for packaging of
these powders. Visited the seed and chilli division. Learned about the packaging of
products this is purely machine based activities.
77
CHAPTER 4
DETAILS ABOUT
INTERNSHIP
78
Errors in
One time scheme recordings are
16/05/201 9 am to 34 routes checked and
verification of noted and
7 5 pm verified.
Sambar powder. reported to my
head.
Stock register is
one among the
Schemes and
The schemes of 151 important
17/05/201 9 am to benefits are
routes entered into the document filling
7 5 pm recorded to the
stock register. of the same
stock register.
requires more
attention.
executives. by sales
executive. GPS
also attached to
the palm tech.
Vouchers are
Vouchers of
Completely check the maintained as a
19/05/201 9 am to 5 chilli powder and
given list of vouchers of proof for
7 pm sambar powder
the same. delivering the gift
checked.
to dealers.
The main
The duration of intention of
sales activities conducting
G.M gives a chance to
are finished in weekly meetings
take part of the meeting
20/05/201 9am to 5 every Saturday. is to evaluate the
and collected the various
7 pm There will be a sales and
data from sales
meeting of sales encourage the
executives.
executives in sales executives
every Saturdays. for further
performance.
Match the
The one time scheme
vouchers and bill
data of every routes
copies of each
entered and this will be
routes and the
23/05/20 the final data related to
valid data enter
17 9am to 5 40 routes checked and chilli scheme. (
into the system.
TUESD pm entered into the system This gives a clear
Mistakes reported
AY picture on which are the
to the respective
items given for each
sales officer who
routes and the count of
handling the
gifts)
routes
requirements these
depose placed orders
and the finished goods
transported in a cargo
from these stores to
depose.
Every Saturday is
the end of sales for Voucher is the proof
one week. for giving gift to
3/6/2017 Collected the
9AM to Collection of dealers and unloading
SATURDA materials from
5PM vouchers, details needed for
Y sales executive
unloading details understanding the
etc collected from stock difference.
sales executives.
into the
main
storage
area.
27/6/17 Visit Visite The
TUESDA the d and productio
Y chilli learn n of chilli
9AM to 5PM packa ed powder
ging the taken
plant opera place at
tion. Theni
productio
n plant.
For the
Kerala
sales
these
powders
packed at
Adimali
plant.
There are
50 gm,
100gm
250 gm
packagin
g
machines
for carry
down this
activity.
28/6/17 9 Visite Learn Seeds
WEDNE A d the ed like
SDAY M seed the cumin
produ opera seed,
t ction tions fennel
o plant of seed etc..
5 seed are
P packa cleaned
M ging at Theni
area. and
packed at
94
Adimali
plant
9 Verifi Verifi Apart
A ed the ed from
M daily the salary the
29/6/17 Bata detail company
t detail s of giving a
THURSDAY o s of 30 daily
5 Sales route allowanc
P Exec and es for
M utives eight sales
, sales peoples
Assist office for their
ants, rs food and
Drive with accommo
rs and the dation.
Sales supp These
office ortin will be
rs. g examined
docu during
ment the end
s. of every
month.
30/6/17 9 Enter Enter This is
FRIDA A the 60 done for
Y M unloa route the
ding s purpose
t detail unloa of
o s to ding. identifyin
5 the g the
P syste stock
M m differenc
es.
would highly beneficial for him. Eastern condiments and its employees were very
supportive and friendly during his internship.
They were very knowledgeable about the spices market and willing to share that
knowledge with me so intern would get the most out of my time with them. The
internship program is great for students to get experience in the workplace.
The internship is not only beneficial for intern’s knowledge that obtain but also the
networking aspect of meeting real professions in the workplace.
During these two months he had an opportunity to visit the Kerala market and
Thamilnadu market apart to the sales team. This gives me an incredible experience.
Almost 1500 km intern was travelled in Thamilnadu he met the various agencies, and
learned how to behave professionally towards customer. While visiting Theni production
plant, intern found the entire process of transforming the raw materials into finished
goods. He learned how to use Pamtec (machine using for printing the bills).
Communication, team management, corporate relations etc are the various skills that
intern improved through his internship programme.
CHAPTER 5
CONCLUSION
100
CONCLUSION
The study concluded at Eastern Condiments Pvt Ltd which is one of the pioneers in
spices and food related industry and the market leader in variety of packaged curry
powders in south India. . It is found that a cordial relationship is maintained between all
departments for the smooth functioning and achievement of the organizational goal of
maintaining the market leadership and company’s image. Eastern has achieved these
enviable heights mainly due to the hard work and commitment of quality besides
bringing a good product at the right customer.
The company has given an opportunity to the intern for visit the plants of Adimali
and Theni and offices for meeting officers and workers from 8/5/2017 to 30/6/2017. This
above Eight week duration has been helped me to study and find out how an organization
and especially marketing department working. It is nice to remind the harmonious,
friendly, co-operative nature of all peoples who are working in the organization that has
made me more confident.
The study helped me to understand that how the company identifies the right taste
of the consumers and how it become leading brand of spice powders in consumer pack
from India. He was also able to understand some of the opportunities and threats of the
company in the organization study.
Being a student of MBA, the internship at Eastern Condiments Pvt Ltd, has
benefited me with so much of confidence and awareness, so as to be able of myself to
work in a firm. The Internship gave me an opportunity to experience and improves my
practical knowledge about an organization.
101
REFERENCES
Websites
www.easterngroup.com
www.eastern.in
www.wikipedia.com
www.spicesboardindia.org