INTERNSHIP REPORT ON

ORGANISATION STUDY OF HIGHRANGE FOODS (P) LTD

BY

PRITHVIRAJ BM

USN 4TH18MBA22

Submitted to:

SHREE DEVI INSTITUTE OF TECHNOLOGY, KENJAR

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINSTRATION

UNDER THE VALUABLE GUIDANCE OF

INTERNAL GUIDE EXTERNAL GUIDE

Prof Sowmya Shetty Mr. Viaykumar

Department of MBA Factory Manager

Shree Devi Institute of Technology Highrange foods (P) ltd

Kenjar, Mangalore Manjeshwar, Kasaragod

Department of MBA

Shree Devi Institute of Technology

Kenjar, Mangalore
 DECLARATION

I, Prithviraj BM hereby declare that the internship report entitled “Organisation study of Highrange
foods (P) Ltd Kasaragod district, Kerala. Prepared by me under the guidance of Faculty Sowmya
Shetty, MBA Department, Shree Devi Institute of Technology and external assistance of Mr.Vijay
Kumar, Factory manager and Production Officer Riaz.

I also declare that this internship work is towards the partial fulfilment of the university regulation.

I have undergone an internship project for a period of 4 weeks. I further declare that this project is
based on original study undertaken by me.

PLACE: KENJAR PRITHVIRAJ BM

( 4TH18MBA22)

DATE:
 ACKNOWLEDGEMENT

It gives me a great pleasure to express my gratitude for all the people who helped me directly or
indirectly.I would like to thank each and every one who offered support, guidelines and help whenever
required. I express my utmost gratitude to the project guide, Sowmya Shetty. Faculty Dept of MBA,
Shree Devi Institute of Technology, who has guided me in carrying out this project. First and foremost
I would like to express gratitude to Venkatesh Amin , HOD of MBA Department, SDIT Kenjar. I
would like to thankful to lour respected principal Dr. Dilip Kumar for his support and encouragement.

I extremely thankful to my external guide Mr. VIJAY KUMAR , FACTORY MANAGER,

HIGHRANGE FOODS(P) LTD, KUNJATOOR, KASARAGOD DIST, for his valuable suggestion
,guidance and encouragement during the preparation of this project. And I also thankful to all staffs of
Higrange foods for their wonderful support.

Special thanks to all the staffs of MBA Department for their wonderful support.
TABLE OF CONTENT

SL. CHAPTER Pg.No

No.

1. INTRODUCTION OF INDUSTRY

2. ORGANISATION PROFILE

3. Mc KINSEY 7s FRAMEWORK

4. SWOT ANALYSIS

5. ANALYSIS OF FINANCIAL
STATEMENTS

6. LEARNING EXPERIENCE

7. BIBLIOGRAPHY
EXECUTIVE SUMMARY

This report has attempted to highlight on the experience gathered during t he period
of internship at HIGHRANGE FOODS Pvt ltd. Highrange foods is one of the leading
local food industry in south India. I got the opportunity to work with this
organization and tried to put m y effort and hard work to make a depth study.

The first part of the report discusses the organizational introduction whi ch included
brief overview of the company. It also included all company information in depth
view in order to give clear picture about the company profile and industry.

The second part of this report includes various models such as Mckinsey 7s
framework and Porter’s 5 force model and SWOT anal ysis of the company. Each
model has their own advantage and disadvantage . This model and anal ysis is used as
a tool to assess and monitor changes, competition of a business etc. Even the SWOT
anal ysis also used in this report to evaluate strength, weakness, opportunities and
threats.

The last part of the report is very significant, because here I had opportunit y to share
my feelings from the internship. During internship period I had achieved some of it
and some were no t done before. So it is great learning experience which influenced
me a lot. And in this part financial anal ysis of company is also discussed.

Highrange foods pvt ltd has been pledge to produce the best products by using onl y
the best ingredients available across the globe. Today it is one of the largest cold
chain network serving around 1200 locations in south India. It serve parlours,
various instituti on, modern trade retail stores, schools and colleges. To create
products which are healthy for both the environment and societ y.

Highrange foods mainl y focuses on ice cream. They mainl y deals with varieties of
ice cream in south India. These days love for ice cream is very high. It plays
important role in societ y. Demand for ice cream is increasing year by year because of
increase in population and increase in temperature of earth. It plays a pivotal role in
the economic development of country by fulfilli ng people’s satisfaction. Even
though it is an seasonal demanded product it plays an significant role in societ y

CHAPTER-1

Introduction about internship

Internship programme is done by the student to get the field experience with an
opportunit y to share their experience and knowledge. Internship programme as a part
Master of Business Administration (MBA) programme, com pleting this project from
this company will make m y theoretical knowledge about the company to practical
knowledge and experience. I got the opportunit y to do 4 weeks of organisation study
in Highland foods pvt ltd company . The internship programme is a part of the
Masters of Business Administration by VTU, Belagavi .

Internship program is the best way to know about workplace, culture and implication
of theoretical knowledge in real life programs. I feel very lucky that I was able to
manage m y internship in a renowned company named “High range foods ltd”.

Whatever we learned in our schools and collage through lectures, books and library
are more likel y theoretical academic knowledge rather than the real implication. But
“Internship” is about using that theoretical knowledge into action, which makes its
significance.

Objective of internship.

* An internship provides a real life experience and exposure. It enables teh intern to
gain first hand exposure of working in the real life which is remarkabl y valuable
towards teh intern’s career.

* It allows the student to harness the skill, knowledge and theoretical practice been
taught in the universit y. To provide the students with an opportunit y to appl y the
knowledge in real work situation thereby closing the gap between academic work and
the actual practice.

* Internship teaches young professionals about specific industries and companies

they are interested in, projects their self -potentials, abilities and shortcoming.

* Get connected, develop professional network and transition to full -time positi on.

Introduction about Industry

The food processing sector has various sectors including consumer foods (snacks,
beverages, etc.), dairy, Ice creams, meat and poultry, fish, grains and cereals, and
fruits and vegetables. Fruits and vegetables and meat and poultry take the lion’s
share of about 40 percent of the total household consumption. The Indian food
industry is poised for huge growth, increasing its contribution to world foo d trade
every year. In India, the food sector has emerged as a high -growth and high-profit
sector due to its immense potential for value addition, particularl y within the food
processing industry. The Indian food processing industry accounts f or 32 percent of
the country’s total food market, one of the largest industries in India and is ranked
fifth in terms of production, consumption, export and expected growth. It contributes
around 14 per cent of manufacturing Gross Domestic Product (GDP), 1 3 per cent of
India’s exports and six per cent of total industrial investment.

India is well-known for its food and beverages service industry. It is one among the
most vibrant industries which demonstrated unprecedented growth in the recent past.
The industries is continues to expand rapidl y. This growth can be attributed on
account of changing demographics, growing disposable income, urbanization and
growth of retail industry. Indian food service industry is expected to reach US$ 78
billion by 2018. The Indian gourmet food market is currentl y valued at US$ 1.3
billion and is growing at a |Compound Annual Growth rate (CAGR) of 20 per cent.
India’s organic food market is expected to increase by three times by 2020

Investment prospects for food processing in India

India’s vast agricultural resources alone creates huge potential for investments in the
food processing an equipment industry. Major areas holding scope for value added
processing are in the canning, packaging, dairy and food processing, frozen foo d, and
thermo-processing industries. Currentl y, food processing accounts for almost one -
third of the total food market in India. The food processing industry is valued at US$
258 billion, and is the fifth largest industry domesticall y in terms f production ,
consumption, export, and expected growth in the country. The country’s food
processing industry is expected to reach US$482 billion by 2020, driven by growth in
organized retail, changing consumer behaviour, and increasing consumerism in tier 1
and tier 3 cities.

Key Drivers of Growth in Food Processing

Consumer Spending on Food

The Indian food and grocery market is the world’s sixth largest, with retail
contributing to 70 percent of the total sales. On average, Indians spend 31 percent of
their total earnings on food and grocery. In contrast, consumers in the US spend onl y
9 percent, while in Brazil and China, the expenditure on food is 17 percent and 25
percent, respectivel y.

Change in Consumer Taste and Preference

With growing awareness, better health consciousness, need for convenience, and
improving lifest yles, and the shar e of processed food is gradu all y and steadl y
increasing on consumer plates across the world. In India, this change is bolstered by
rising per capita income, a large young population (60 percent below 35 years of
age), deeper retail penetration, and a growi ng number of nuclear families. India’s
demands for processed food is, therefore, expected to increase to about 10 percent in
2020,

Growth in Food Exports

There is a rise in the demand for Indian processed food in the international market .
In addition to ch anging consumer tastes in foreign markets, most of the Indian people
live abroad. In 2016 -17 the total exports from this sector witnessed a positive growth
of 0.55 percent to reach US $24657.09 million, thus occupying a share of 8.9 per cent
in India’s over all exports.
Food Processing and preservation methods

Food Processing, food preservation food production and food manufacturing are all
interrelated terms that refer to the processes used to turn raw agricultural products -
and in some cases products harvested from the wild - into consumable foods. These
processes are used to make foods safer and more palatable to human consumers.
Although food processing is often done in industrial settings, individuals use a
variet y of at home food proc essing methods as well, One example of at home food
processing is cutting, deboning and cooking a fish after it has been caught.

Food preservation is a key part of food processing. Preserving food is a form of

processing it, and many other forms of food processing require the food to be
preserved first. There are many different food preservation method in use, some of
which can be done at home and others that require the use of commercial food
manufacturing equipment.

Drying

Extraction of moisture by sun, air heat, or vacuum to inhibit the growth of molds,
bacteria and yeasts

Salting

The addition of salt or a brine solution to foods to decrease the activit y of molds,
bacteria and yeasts.

Curing

The addition of a chemical compound to food to slow the growth of bacteria

Fermentation

The use of special bacteria, molds or yeasts to prevent spoilage by converting the
elements of food that spoil easil y to stable elements that act as preservatives.

Freeze Drying
The freezing of food and the subsequent removal of water from the frozen food
through the use of heat and a vacuum

Smoking

The addition of smoke and heat to preserve food by t he action of the chemicals from
the smoked wood and the partial drying of the food

Canning/Aseptic Packaging

The packing of food in a container, sealing the container and heating it to sterilize
the food.

Pasteurization

The heating of milk and other liquids which reduces the number of isease producing
bacteria.

Refrigeration

|The lowering of the temperature of food to inhibit the growth of bacteria, molds and
yeasts.

Freezing

The lowering of the temperature of food to temperatures below 28 degreses F to stop

the frowth of bacteria, yeasts and molds and to kill parasites .

CHAPTER-2

Organisational Profile

i. Background
The Head of the company was founded in 1972 by Mr. MC john a retired senior
bureaucrat in the Kerala government. It is currentl y led by Mr. Simon John and Mr.
Francis John and their team of eminent directories . The company is a pioneer in the
ice cream industry in South India. Its first factory was started in Kochi and today has
over 28 factories spread across south India , The 28 factories put together has a
production capacit y that is among the top 2 in the country after amul. Apart from the
mainland and domestic operations, that is among the top 2 in the country . Apart
from the mainland and domestic o perations, the company has also supplies to
Andaman islands, Lakshadweep and to the Republic of Maldives. The company is
operating across South India through committed franchisee net work. These factories
are located various parts of the south India and it operates for all 365 days so
product can be available without any interruption. Many dealers are available across
south India covering 1200 locations comprising 1120 dealers in 5 south states. The
company is having 1640 stock keeping units, these helps th em to store ice creams to
prevent from becoming spoiled . Normally shelf life of ice cream last for 2 -3 months
and some ice cream depends on a variet y of factors, such as t he preparation method
and how it was stored , etc.

Diary is a place where handling o f milk and milk products is don e and technology
refers to the application of scientific knowledge for practical purposes. Dair y
Technology has been defined as that branch of dairy science, which deals with the
processing of milk and the manufacture of milk products on an industrial scale.

The company has several department to run the organisation systematicall y

department like financial department, marketing department, sales department,
Administration department, and technical department.

General Information:

Name of the Unit: Highland foods Pvt Ltd

Form of organisation: private

Year of establishment: 2002

Factory director: Vijay Kumar

Location: Manjeshwar, Kasaragod, Kerala

 ii. Nature of business

Highrange foods ltd is mainl y concerned with ice cream business. They promote their
ice cream in 4 brands namel y, Skei, Uncle John, Lazza, I&U. Operating in market for
17 years they are major competitors for many brands. The company has 32
distributors and covering 40 Km of region. These regions are restricted by the Top
level of management form Kochi. Because of many manufacturing plant set up in
each district the distribution region is also divided into capacity of the production of
the company. The company manufactures 3 -4 Lakhs per day of product depending
upon the seasons. The company has almost 40 employees. The company will operate
365 days and production department employees will get Wednesday off. The
company manufactures more than 40 flavours ice cream with more tha n 82 flavours.
The raw material that used to manufacture ice cream will be purchased form various
states like Kerala, Karnataka, Madyapradesh, Rajasthan, Tamilnadu, &
Andrapradesh. Raw materials like sugar come form Karnataka and varieties of
flavours used in ice cream is purchased from Trissur district of kerala and Milk
powder come from Madyapradesh and Milk come from various part of kerala. The
company has advanced technology of production along with 4 freezer which will be
always switch on in -29 degree Celsius. Most of the technology is imported from
china and some are manufactured by the engineers who associated with the their own
brand. They maintain and manufactures for all the 28 factories located in south India.
Even though company is operating in many other locations they are not performing
very well in some market. Highrange is located in the district of kasaragod it also
supplies its product to Mangalore region where it is failing in that market because of
Ideal brand ice cream has occupied the market share and it won the heart of
mangloreans. Recently company has opened an distribution branch in s hivmoga,
Karnataka. If the company receives positive respo nse form the consumer company
can get huge market share.

iii. Vision statement

We aim to provide our outstanding range of exotic products at affordable price range.

Mission Statement
To operate the brand on a sustainable financial basis of profitable growth and thus
providing opportunities for development and career growth for our employees and
channel partners

Quality Policy

We shall strive to compl y needs and expectations of our customer and both external
and internal interested parties by considering their re levant issues as ewell as
applicable legal requirements

Social Vision Statement

To operate the brand through continuous innovation and by initiating ways to

improve the qualit y of life

Product Vision Statement

To make, distribute and sell the finest qualit y of ice cream with a continued
commitments to incorporate wholesome, natural ingredients and promoting business
practices that respects the environment

iv. Work flow model

A workflow diagram is a basic visual layout of a business process . Using it, we

can represent the various tasks involved.

Analysing Market Return

Estimating Dealers requirement

Ice cream manufacturing

 Ice cream filling

Marketing Channel

Cold Storage

Transportation by A.C. isolated vehicles

Distributors

Dealers & Customer

Management:

Factory Manager Mr. Vijay Kumar

Production Supervisor Mr. Ramseed

Production Officer Mr.Riaz

Sales Manager Mr.Ranjith

Accounts Manager Mr. Manoj

Management must follow the instruction from the top level management
Headquartered at Kochi.

v. Product/Service Profile
Highrange foods have producing more than 40 varieties of product from past
17 years. Each product they manufacture is different in its taste, size,
ingredients, and packing. Product of Highrange is mainl y divided in to 3 t ypes
like High fat ice cream, Medium fat ice cream, Low fat ice cream. Pricing
depends upon the fat content and flavour used in ice cream, High fat ice cream
has more than 12.5 fat and Medium fat ice cream has below 10 - 5 fat content
and Low fat ice cream contains below 3.5 content of fat. So Low fat ice cream
is the cheapest ice cream avail able in the Highrange brand. High fat ice cream
will sold at High cost and used for export purpose. Highrange foods Research
and Development held at Headquarter in Kochi. From the Headquarter the
other 27 factories operate and make production instructed by them. Many
natural things added in the ice cream are bought from Kochi. All the
employees working are provided with medical treatment for every 6 month.
This is to take care the employees by encouraging them. Many product
manufactures here are based on ingredients they use for different brands they
present. Lazza brand ice cream made of condensed milk and Uncle John brand
ice cream made up of Milk powder and Skei brand is made up of Whole milk.
So company market their different brands and their manufactu ring process will
be also will be changed. Their taste will also differs when the ingredients
changes. Some flavoured ice cream are not manufactured in some factories in
Kerala, so Highland will distribute some ice cream in freezing van and while
returning back van will be loaded with some ingredient which useful in ice
cream manufacturing. This is how the whole operation works. The compan y
manufactures more than 40 different ice cream. Here are some of products ,
they are:
Mango
Rich chocolate twist, Gud b ud, Fruit Fundae
Milk sip up
Ice candy
American Bar, Chocobar
Kulfi stick
Orange, Pineapple ,Raspberry Lollies
Green apple duble Xtra, Raspeberry duble xtra, Big chocobar

Pineapple Duble, Mango duble, Raspberry Duble

Mango Max, Mango craz y
Truff Pack, Twin Pack, Tender coconut pack
Delite Slice
Twin & Flavour Cassata
Balls
Deluxe cassata
Frozbyt
Redberry
Matka Kulfi
Compack Pack
Bulk Pack & Cups
Delux swing, swing, Swinger
Cones

Manufacturing unit spread over 5 states comprising of 28 factories in south

India they are listed below:
 Kerala
South shore Ice Creaqms Pvt Ltd, Pattom, Thirvananthapuram
South shore Ice Creams Pvt Ltd, Paruthikkuzhi, Thirvananthapuram
Combined Foods Pvt Ltd, Kollam
Gala Ice Creams Pvt Ltd, Pathanapuram, Kollam
 Highrange Foods Pbt Ltd, Kottayam
Highrange Foods Pvt Ltd, Ponkunnam, Kottayam
Kreem foods Pvt Ltd, Aroor, Alappuzha
Jojo Frozen Foods Pvt, Ltd, Cochin Eranakulam
Teejan foods Pvt Ltd, Kalamasery, Ernakulam
Snocap Ice Crams Pvt Ltd, Trichur
Snocap Ice Creams Pvt Ltd, K orattikkara, Thrissur
Kreem Foods Pvt Ltd, Pandikkadu, Malappuram
Snofield Foods Pvt Ltd, Palakkad
Kreem Drinks Pvt Ltd, Silk Street, Kozhikode
Kreem Drinks Pvt Ltd, Vengali Kozhikode
Cream Packs Pvt Ltd,South Bazar, Kannur
Cram Packs Pvt Ltd, Thaliparambu, Kannur
North Shore Ice cream Pvt Ltd, Manjeshwar, Kasaragod
 Karnataka
Lazza Frozen Foods Pvt Ltd, Mysore Road, Bangalore
North Shore Ice Cream Pvt Ltd, Kushal Nagar, Coorg
 Andrapradesh
Kreem Foods Pvt Ltd, Ibrahim Pattinam, Hyderabad Ltd , Vi jayawada
Gelma Frozen Creams Pvt Ltd, thirupathi
 Tamil Nadu
Frasim Foods Pvt, Ltd, perumbathur, Chennai
Southshore Ice Creams Pvt Ltd, Madurai
Cram Packs Pvt Ltd, Trichy
Fourfoods Hotels Pvt Ltd, Tirunvelli
 Maharashtra
Patan Foods Pvt Ltd, Patgan, Pune
 INTERNATIONAL FRANCHISE AFRICA
Le Alpes swisses sprl, Av Bokassa, Kinshasa, Democratric Republic of
Congo

All Franchisee factories of Skei Ice Creams will work all 365 days to
ensure uninterrupted suppl y .

vi. Ownership Pattern

 Highrange is an private ltd company owned by Mr.Simon John and Mr. Francis
john. All the factories across south india are led by these 2 person. The y
control all the activities of 28 factory unit. Both the brothers are directors of
the company. The company is owned 70% of the shares by the JSF Holding
company and remaining 30% share is sold to public in 2016. The JSF
Holdings is the largest ice cream maker in Kerala with more than 75% market
share. Both the brother s Francis John and Simon John hold about 50% stake
each in the compan y and later 30% sold to public.
vii. Achievements/awards if any:

Even though company is operating for so many awards they haven’t received
any awards or achievements. Their main branch which was located in kochi has
awarded with many achievements but th eir franchisee in kasaragod was yet to
achieve awards.

viii. Future growth and prospects

Highrange company is trying to expand their business by setting their distribution
and factory where their product is not existed. Recentl y the team of Highrange
foods moved to shivamoga to establish their distribution and continue the
operation. Product will be moved to shivmoga in freezer van and from ther e
distribution will start. Distribution warehouse has been taken as rent for the
operation once the customer are satisfied then company will set the another plant
. A business will grow when their operation and controlling expands. Highland
foods will occupy the south India’s market and will try to impress the giant brand
Amul in future years. Highrange brands have huge network in south India which
no other brand is having such an network other than Amul. So Highrange food
products are now exporting their p roduct to different countries like Dubai, Qatar,
Bahrain etc. They not onl y focus on production but also give importance to the
environmental safety. Highrange company have equipped with advanced water
treatment plant so these water will used for irrigatio n purposes. And all the
plastic material waste like ice cream containers are recycled.
 CHAPTER-3

McKENSY’S 7S FRAME WORK OF HIGHLAND FOODS PVT LTD

Mckensy’s 7s Frame Work Provides a useful framework for analysing the strategic attributes of an
organisation. The model starts on the premises that each and every organisation is not just a structure
as it consists of seven important elements. Strategy, Structure and System can be considered as
Hardware of success while Style, Staff, Skills and Shared values are considered as the software.

Structure

Strategy Systems
Shared
Values

Skills Styles

Staff
Soft Ss:

The four Ss across the button of the model are less tangible, more cultural in nature and were termed as
Soft Ss by Mckensy’s.

Style

Skills

Staff

Shared Values

Hard Ss:

The three Ss across the top of the model are described as Hard Ss

Structure

System

Strategy

STYLE:

Leadership style of management in Highland foods is democratic. Democratic leadership , also known
as participative leadership, is a type of leadership style in which members of the group take more
participative role in the decision making process. Everyone is given the opportunity to participate,
ideas are exchanged freely, and discussion is encouraged, While the democratic process tends to focus
on group equality and the free flow of ideas, the lead of the group is still there to offer guidance and
control.

The democratic leader is charged with deciding who is in the group and who gets contribute to the
decisions that are made. Researchers have found that the democratic. Leadership style is one of the
most effective and leads to higher productivity, better contributions from group members and
increased group morale

Characteristics of Democratic Leadership:

Some of the primary characteristics of democratic leadership include:

 Group members are encouraged to share ideas and opinions, even though the
leader retains the final say over decisions.
  Members of the group feel more engaged in the process.

 Creativity is encouraged and rewarded.

Researchers suggest that good democratic leaders possess specific traits that include :

 Honesty

 Intelligence

 Courage

 Creativity

 Competence

 Fairness

 Strong democratic leaders inspire trust among followers. They are sincere and base their
decisions on their morals and values.

 Healthy Mind

 Learn the best ways to manage stress and negativity in your life.

 Followers tend to feel inspired to take action and contribute to the group. Good leaders also tend
to seek diverse opinions and do not try to silence dissenting voices or those that offer a less
popular point of view.

Benefits of Democratic Leadership:

Because group members are encouraged to share their thoughts, democratic leadership can lead to
better ideas and more creative solutions to problem. Group members also feel more involved and
committed to projects, making them more likely to care about the end results. Research to leadership
styles has also shown that democratic leadership leads to higher productivity among group members.
Drawbacks of Democratic Leadership:
While democratic leadership has been described as the most effective leadership style. It does not have
some potential downsides. In situations where roles are unclear or time is of the essence, democratic
leadership can lead to communication failures and uncompleted projects. In some case, group
members may not have the necessary knowledge to make quality contributions to the decision-making
process.

Democratic leadership works best in situations where group members are skilled and eager to share
their knowledge. It is also important to have plenty of time to allow people to contribute, develop a
plan and then vote on the best course of action.

Skill

To run an organisation skill is required. Food industry sector has seen an exponential boom in the
recent times. This boom has also triggered the need of skilled and qualified human capital in the food
industry sector, which is clearly indicated by the increasing in the population growth and increasing
the food consumption. Skill is required in all the department for smooth flow of organisation. If a
business systems are not properly organized, tasks pile up, paperwork get lost and valuable time is
spent on finding information that should be readily available. Good organizational skills can save a
business owner time and reduce stress.

Training and Development programmes

Employees of Highland food undergo regular training and development programmes based on the
requirement of the employees. Employees are informed about the trainng and developmental
programmes if there are any and they can undergo this training or developmental programmes if they
feel its required.

There are different training and developmental programmes provided by the company in order suit the
employees to the job they do. So for a fresher they will train in the Highland foods ltd and for the
higher position Top level management from head office will appoint some high experienced person to
train their employees. Some time Top level management will appoint person from outside the
organisation for some other activities like marketing , advertising and controlling the activities.
SYSTEM :

Recruitment Procedure in Highland foods pvt ltd.

Vacancies will be put up in the official website of main branch. Some time they post their requirement
in some newspaper . The Head office in Kochi will be inform any requirement in other 27 factories.
People can apply for the job by registering in the official website of the company. Based on the skill
and qualification required company will select certain candidates and they will be called for interview.
It provides recruitment to the candidates for various posts as per the eligibility criteria.

Promotion and performance appraisal

Employees of the Highland foods are encouraged to work efficiently and effectively through
promotion and performance appraisal. The following qualities in a employee are considered while
promoting an employees.

 Performance
 Achievement of given targets
 Seniority
 Punctuality
 Attendance

SHARED VALUES

Co-operative culture, cooperative networking, market acumen and respect for both producer and the
consumer. True development involves building the institutional capacity to respond to new and
diverse challenges, to adapt, to innovate and to create newer institutional forms

Goals

 To occupy the maximum market share

 To increase the production capacity by improving sales and demand for the product they
produce
 To contribute to the social activities by taking part in some social activities.

STRUCTURE:

Highrange foods have department like marketing department, financial department, sales department,
and production department. The decision making process is based on the delegated power of each
units. The directors of the company are empowered to formulate policies regarding the declaration of
powers to various functional heads.
 The Director of the company is guided by Top level of the company from the Head Office in Kochi.

STAFF

There are more than 40 number of employees out of which are permanent employees and are
contract employees and some are part time employees. All the Staffs working here are provided with
free health check up for every 6 month. The production department employees will get Wednesday off.

STRATEGY:

The direction and scope of the company over the long term is known as strategy.

The strategy of the Highlands foods ltd is to be a premier among and to excel in all the
parameters are it business or social responsibilities. Strategy is important in every business
department . To reach an goal strategy is needed each and every move of the business

Porter’s Five Force Model

Porter’s Five Forces Framework is a tool for analysing competition of a business. It draws from
industrial organization economics to derive five forces that determine the competitive intensity and,
therefore the attractiveness of an industry in terms of its profitability. An “unattractive” industry is one
in which the effect of these five forces reduces overall profitability. So by preparing porter’s five force
model Highland food can identify the force that reduces the sales and production.

Threat of new entry

Industry Bargaining power of buyers

Bargaining power of
suppliers rivalry
 Threat of Substitutes

Threats of new entrants:

This is one of the major problem of many company. There are many competitors operating in the
market. New entrants eventually will decrease profitability for other firms in the industry. In the
district of kasaragod there are multiple brands are operating , some brands are from outside district and
some brands are directly manufactured here. Highrange foods ltd is big manufacturing unit when
compared to other local competitors operating in the market.

Highrange foods ltd got 82 flavours of ice cream which other local competitors does not have so much
of flavours. So this is one of the plus point for the Highrange food company. Here customer mainly go
for ideal brand ice-cream which was one of the biggest rivalry for the Highland brand.

Threat of new entrants is high when:

 Low amount of capital is required to enter a market;

 Existing companies can do little to retaliate;
 Existing firms do not possess patents, trademarks or do not have established brand reputation
 There is low customer loyalty
 Products are nearly identical
 Economies of scale can be easily achieved

Bargaining power of supplier:

Strong bargaining power allows suppliers to sell higher priced or low quality raw materials to their
buyers. In Highrange foods raw material like milk , sugar content, and other packing raw material are
useful for their business. So if the supplier of raw material forces to increase the price of raw material
then their profit will come down .It affects all their business system. This happens only when :
 There are few suppliers but many buyers
 Suppliers are large and threaten to forward integrate
 Few substitute raw materials exist
 Suppliers hold scarce resource
 Cost of switching raw materials is especially high

Threat of substitutes:

A substitute product uses a different technology try to solve the same economic need. Highrange
foods pvt ltd mainly manufactures ice creams. Even though they are into dairy production they
only manufactures ice cream. There are many substitutes for ice cream like Juice and other milk
product. Highrange can decrease this forces only by producing other milk products like cold
drinks, filtered water etc. People will prefer substitutes only when the cost is less when compared
with actual product. One of the best example is mosquito liquid is from chemical industry and its
rivalry mosquito bat is from electronic industry. So every industry has to face substitute product
form different industry. This can ruin their business by decreasing their sales level and profit level.
The availability of a substitution threat effect the profitability of an industry because consumers
can choose to purchase the substitute instead of the industry’s product .

Some of the factors determine whether or not there is a threat of substitute products in an industry
are

 If the consumer’s switching cost are low:

 If the substitute product is cheaper than the industry product
 If the substitute product is equal or superior quality compared to the industry’s product
 Consumer will switch to substitute product even though price of the product is high but
maintenance cost will be less. Eg: Solar water heater costs 4 times than the electric heater but it
is an one time investment that can last for more than 20 years. So in this case people will prefer
high cost solar because there is less maintenance cost .

Bargaining power of Customers

The bargaining power of customers also described as the market of outputs .In Highrange food
(P) ltd the distributor and retailers who purchase the product in bulk will bargain the
management to decrease the price product so that they can get enough margin for their survival
 . This happens only when the competitors price is less when compared with Highrange
products price. Buyers have the power to demand lower price or higher product quality from
industry producer when their bargaining power is strong. Lower price means lower revenues
for the producer, while higher quality products usually raise production costs. Both scenarios
result in lower profits for Highland company. Buyers exert strong bargaining power when:
 Buying in large quantities or control many access points to the final customer;
 Only few buyers exist;
 Switching costs to other supplier are low;
 They threaten to backward integrate;
 Buyers are price sensitive;

Rivalry among existing competitors

occupy the market share company must see to increase their sales level and decrease the
percentage of profit . When a company come up with a new thing then it will be advantages for
company to increase the profit and customers attraction. In competitive industry, firms have to
compete aggressively for a market share, which results in low profits. Rivalry among
competitors is intense when
 There are many competitors;
 Exit barriers are high;
 Industry of growth is slow or negative;
 Products are not differentiated and can be easily substituted;
 Competitors are of equal size;
 Low customer loyalty.

This force is the major determinant on how competitive and profitable an industry is.
Highrange foods have major competitors to occupy the market share. There are several giant
company and other local brands are operating in the market.
 CHAPTER-4

SWOT Analysis of Highrange foods Pvt limited company

The overall evaluation of the company’s strength , weakness, opportunities and threats is called SWOT
ANALYSIS This analysis helps the society in realizing their strength and building upon them in order
to overcome its weakness so that it can take advantages of opportunities to manage the threats.

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

Strengths:
 Large distribution system :
Highland has a large distribution network because of their franchise system they covered in
every part of southern region. Mainly their manufacturing unit is located in every state of
Kerala and in some parts of Karnataka, Andrapradesh, Tamilnadu and Maharashtra . Company
has distribution of 1200 which is the greatest strength . A company will survive only when it
equals or exceeds the customer expectation. The company has a strong supply chain for the
delivery of its products to the distributors, retailers, and wholesalers throughout the country.

Highland is using the local carriage transportations such as trucks and trailers etc. For
the delivery of the products. This way of delivery is at low cost and beneficial for the company
for timely dispatches .Even though their distribution has spread over form different
manufacturing unit Highland company need not worry about long distribution and their time
and cost for transportation will be saved.

 Good relationship with retailers and wholesalers:

Highland has good relationship with their retailers, and wholesalers for their brand loyalty. Due
to this they have a large chain of their distribution channels and it can help to expand their
market. India is bestowed with more languages so all the employee working in this company is
familiar with same language that they operating in the market.
 Professional and skilled management.
The management in Highland ltd has skilled and experienced . The manager of the Highland
foods is the one who was appointed in the start of the company now he is leading the way since
then all the important decisions are made by him n the company.
 Most of their products are in low and mid-range price segments.
One of their major strength is that their products are available in low price and in the good
quality. Their basic concept is that to provide the good quality product to customers in the low
range so that most of the people in Kasaragod district who are willing to buy low price product
can get from Highland foods ltd. Because of it is one of the biggest ice-cream factory in
kasaragod their production capacity will be more and thus decreases the cost of the product and
company can provide to public in lower than the competitors price.
 Easy access to the branch locality.
Their manufacturing unit is spread over different district of Kerala and some part other states
like Maharahstra, Tamilnadu, Andrapradesh, so supplier, dealers or people near by can have
the easy access to factory and get their products.
  Large network
They have large network not only in one district they spread across different location and their
number of distributor from all the factories is 1120 distributors for 27 factories spread across.
 Excellent competitive skills.
If we talk about their competitive skills of Highland foods they are way ahead than other in
the market. Their increasing in production capacity helps in decreasing the cost of the product
so this is one of the major competitive skill.

 Experienced Sales and Marketing team

They have a well-managed and good marketing team working in the department of sales they
analysis the new possibilities and the consumer behaviours to judge their products.
 Offering variety of products in different sizes under its brand
Highland foods have almost 86 different flavours to attract the customers. No other brand in
kasaragod district produce so much of flavoured ice creams. This is one of the biggest strength
to withstand against other competitors.
 Highland foods have almost 43 distributors in single district
Their one of the strength is that they have more than 40 distributors all around the district and
other districts will be supplied by different franchise company of same brand.

Weakness:

 Lack of focus upon maintaining the declining sales of existing products/brands.

The management syle adopted by the company is “centralization” Degree of formalization
chain of command is high. Sector like company where top management decisions are enforced
upon middle and lower level management.
 Lack of decision making
At Highland foods there is lack of future direction and strategy development. The employees
perform day to day activities, but the outcome of their tasks is not monitored for continual
improvement of organization. Moreover the management does not involve employees in the
decision making process for promoting existing and potential products.
 Lack of schemes for retailers and distributors
Retailers and distributors plays an important role for enlarging the organization. But highland
foods management does not provide any schemes for the encouragement or fulfilment. As their
 main production is ice cream its an seasonal demand product so during the time of raining
season distributor or retailer face huge downfall in their sales.
 Most of the employees are overloaded with the work
Due to the seasonal demand whenever the order for the product increases then same
employees will in production department for the same salary. It is also some employees to
work in the holidays too.
 Low salaries to staff
Although they give salaries according to the law but it too low for everyone . most of the
(approx 95%) employees in the Highland foods is recruited from kochi which is more than 400
km form the manufacturing unit in kasaragod . so their expenditure will be more and it won’t
suit what they get paid.
 Un-satisfactory area of production
The production unit setup in kasaragod district which is almost 30 km long form the city. So
the area they selected for manufacturing of product is not suitable for demand creation. Many
people may not be knowing about these company, if the manufacturing unit was setup in the
centre or near to city will be known to public about their product.

 There is not much margins for retailers to prefer it’s sales.

The margin that get for distributer as well for retailers is less for each product they sell.
Because of the brand standard their pricing is more when distributor purchases their product.
So because of less margin many distributor are just avoid to purchase their product. High
margin encourage the distributor as well as retailer to sell more and more product of highland
foods.
 Lack of advertising
Highland foods won’t advertise their product in any media. So this is one of the drawback to
boost the product . Advertising help the company to get more and more product .

Opportunities

 Variety of product line

Highland company has variety of product line by having more than 80 flavours they can
expand their product line further by adding flavours that consumer needed. So other company
offers these many flavours in this market so its an good opportunity to move forward their
business.
  More customers can attain
Because of limited ice creams are circulating in the market it is the best opportunity to
Expand production capacity and there by increasing the sales by investing more in advertising
activities.
 New promotion opportunities
Company can adopt new marketing and promotion activities these days. Nowadays there are
many method to promote brand by social media etc. By different marketing strategies
organisation can improve their brand to next level.
 Upgrading technology
Technology is developing rapidly , so company must look forward for upgrading their existing
technology in order to speed the production capacity and improve the efficiency .
 Offering discount facilities

By giving customer more benefits like discount and other seasonal offer they can boost
the sales and production unit and it also helps to increase their goodwill in the market.

 Company can open separate stores to eliminate retailers

By opening their own stores than depending upon the other retailers they can get more profit
from the sales they make. By doing this company can get direct feedback from customer those
who purchase their product and accordingly they can produce their product as per customer
needs.
 Company can enter into other Milk Products
Highland food mainly deals in ice cream product so they can expand their business by
producing other product from milk. Other Milk products like Chocolate, sweets , Juices etc
these will be having huge demand in the market.
 Introducing chillers in the market
Chillers are more important in ice cream factory to prevent the product from spoilage. So
company can adopt chillers in the market so that they can expand their business in huge
market.

Threats

 Some companies are competing on the basis of cost

 Cost plays important role in business activity. There are more competitors in the market so
many company will decreases their cost in order to increase their sales and increase the
production. Reduction in cost help the distributor or retailer to sell with maximum margin.
 Threats from giant companies
There are many giant ice cream brands are operating in the market this will bring the huge
threat to company performance. In this are there are major players like Amul, Ideal, Kwality ,
dairyday these are the major players and threat to the Highland foods.
 As per the local competitors our distributors cost is very high
In this market there are not only giant company operating in the market but also local
competitors play an competitive role. When Highland foods product cost is compared with
other local competitors it was very high. So this will create a bad impact on the distributor. And
there is chance of voluntary quieting distributors .
 Political Instability
Highland foods pvt ltd is an company from different location . So the management is not
familiar with the place and people around which they operating. Political instability may affect
in future if the company grows well and affects the competitors business.

Conclusion:
I tried to evaluate the internal and external factors of Highland foods Pvt ltd . and I observed
that they have made good market share in a very short span of years. They have provided
employment opportunity for the local labour. They also having latest machinery and equipment
to provide the best quality to their customers.

CHAPTER-6

Learning Outcome

During the period of internship, I was assigned in the finance department at Highrange foods for a
period of 4 days then I shifted to production department where many employees working at production
department. I got an opportunity to interact with them regarding the company’s negative and positive
thoughts, and fetched many information about company. Even in Financial department I got lot of
information about companies regarding performance of company in terms of sales, production, profit
etc. Highrange foods always focused on providing quality of the product. We live in society where
most of the people go for the finished food product. This is one of the main reason that food industry
is developing very rapidly.

In the present era many company make their best effort to attract number of customer towards them
which resulted in aggressive competition in food industry. So Highrange foods must cope up with the
latest technology so as to provide better services for the customers, they must make an effort to study
well mindset of the customer and provide new products and services.

Suggestions & Recommendations:

During my internship I found some of the faults and lack of some of the facilities in Highrange foods
operation. Here are some of the suggestions which I recommend to the company.

 The advertising of company and company’s product is not so much good and exposed to
people. I didn’t find any advertising about company or product anywhere. So Management
must hire some of the skilled marketers who can design creative and attractive advertisements
and advertising campaigns using all possible medias to make every person aware of the
company’s product.
 Highland foods (P) ltd are only manufactures ice creams, even though they are dealing with
milk they can produce many other milk product like chocolates, tetra pack milk shakes, sweets
etc, This can create more employment as well their business will grow rapidly.
 company is somewhat slow in launching new products. So they should review its policies of
launching new products in short and reasonable time.
 Most of the employees are from different district so they require more salaries than they
actually get. So company must focus on employees by increasing the salary.
 Highrange foods runs 365 days in a year expect production department. So company must give
holidays to employees for encouragement.
 Incentives and award system should be introduced for the employees for their motivation.
 In this company many employees working here are from different district . So they are not
familiar with the people and places they working. If the company recruits local people it would
be an indirect promotion for company. Employees working will recommend their friends,
families, relatives which will boost the sales production.
  Company is big failure in Mangalore region because of ideal ice cream. So company must
identify the needs and wants of the consumer and prepare according to their needs .

 Research and Development centre is not available in Highrange foods ltd so they cannot
manufacture according to the needs and wants of consumer.

CONCLUSION

During the study it has been observed that the Highland foods pvt ltd is an upcoming unit with all
promises to prosperous in future. The dynamic and efficient management of the company is defiantly
will take of this company to next level. It is also observed that company has started exporting their
product to Dubai, Qatar. Worth of 80 lakhs product is exported to Dubai and Qatar in an month. So
now they are trying to export to Bahrain where they are searching for dealers in that country. So by
taking these steps it will boost the company name as well as profit and it also helps in contributing to
the GDP of the nation by inflow of cash.
ANNEXURE
 Analysis of financial statements

PARTICULARS AMOUNT AMOUNT PARTICULARS AMOUNT AMOUNT

Opening Stock 98,52,000 SALES ACCOUNT
Sales of product 18,32,73,985
PURCHASE ACCOUNT Sale of Gunny bag 12,000
Purchase Milk 5,35,78,962 Sale of Scrap 32,85,200
Purchase of Sugar 2,85,96,000
Purchase of Milk 1,09,83,254 By Closing stock 2356874
Powder
Purchase of Natural 62,36,421
ingredients
Purchase of Flavours 9,52,640
Purchase of Gas 15,62,000
Purchase of Mineral 26,58,421
water

DIRECT
INCOMES/EXPENSES
Trading expenses 1,65,89,421
Transport Charge 25,98,741
Coolie account 6,52,365
Scale Service A/C 7,84,695
Gross profit(bf) 5,15,26,265

186571185 18,65,71,185

TRADING A/C FOR THE PERIOD 1/4/2017 TO 31/03/2018

 PROFIT & LOSS A/C FOR THE PERIOD OF 1/4/2017 TO 31/03/2018

Particulars Amount Amount Particulars Amount Amount

Interest on deposits Gross Profit 51526265
Staff Payments Interest on 3385412
Daily Wages 1236587 investment
Staff Salary 865400 Interest on Loans 158475
Indirect Expenses 312978
Building Maintenance 297412 INDIRECT
Internal audit fees 38654 INCOMES/EXPENCES
Miscellaneous 94785 Notice Charge 11854
expenses Commission 36258
Repairs & Maintenance 1684657 Service tax collected 85471
Advertisement 654872 Maintenance charge 258412
Commission 174362 Postage 12854
Electricity 524169 Rent a/c 652145
Meeting & 18745 Service charge 15651
Refreshment Share charge 85695
Newspaper 16000
Audit fees 79568
Tax 6985471
Telephone 2908
Travelling expenses 71498
Meeting charge 11854

Net Profit (bf) 4,36,77,572

5,62,28,492 56228492
 Highrange foods (P) LTD
Balance Sheet as on 31 April 2018

Current Assets
Cash at Bank 3,00,00,000
Inventory 1,36,00,000
Debtors 2,16,00,000
Bills Receivable 63,45,000
Prepaid Expenses 13,58,200
Investment 2,63,00,000
Total current assets 9,92,03,200

Non-Current Assets
Buildings 8,75,00,000
Plant& equipments 12,82,54,000
Vehicles 1,63,65,000
Goodwill net 12,00,000
Total Non-Current assets 23,33,19,000
Total Assets 33,25,22,200
Current Liabilities
Creditors 36100000
Tax Payable 520000
Bills payable 2,63,000
Accrued Expenses 45,00,000
Total Current Liabilities 4,13,83,000

Non-Current Liabilities 8,00,00,000 8,00,00,000

Long term loans

Total Liabilities 12,13,83,000

Owners Capital
JSF Holding co 14,77,97,440
Public 6,33,41,760

Total Capital 21,11,39,200

Liabilities + Capital 33,25,22,200

 BIBLIOGRAPHY

Records

 Article of Highrange foods (P) ltd

 Journals and Magazines of Highrange

Website

 www.skei.in

 Wikipedia

 www.lazza.in

 www.i&u.in
Photographs of HIGHRANGE FOODS
THANK YOU