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ORGANISATION STUDY

ND QUALITY QUALITYSTORAGEOILEXTRACTIONFACTORY CRUSHER BLADE FOURTH CHECKQUALITYPROCUREMENTBY SOCIETIESLAB FILTER I FIRSTEXTRACTED CHECKFACTORYFACTORY GROWERS THIRD COPRA OIL FARMERS/COCONUTSOCIETY OIL USEDEXTRACTIONOF OFFICE FACTORY PERSONNEL SECOND CHECKSEND COPRA MOBILE LAB LAB QUALITY ACQUIRING CHECK TO SOCIETY INSPECTOR QUALITYSTORED FORBY GATE COPRA FIRST USED OF UNITS FROM TEAM TRANSFER CHECKCOPRA FACTORY PACKING OF CO-OPERATIVE IN PACKING OIL BY FACTORY LAB OFQUALITY COPRA BY OF PRIMARYOF UNIT BY CHECK BY STORAGE FOR FIELD II EXPELLER I CRUSHER BLADE EXPELLER II

ATTENDER ATTENDER CHARGE TYPIST TYPIST SHIFT OFFICE ACCOUNTANT OPERATOR ASSISTANT CRUSHING UNIT INMANAGER STORAGE TANKSASSISTANT PASSAGE WORKERS ATTENDER

OFFICE MANAGER PROJECT MANAGER DIRECTOR OFFICE MANAGER MANAGER (PRODUCTION) ASSISTANTMANAGER MANAGER ASSISTANTPLANT (ADMN) (PROJECTS) ) ASSISTANTMANAGER (ADMNISTRATIONS ASSISTANTMANAGER ASSISTANTMANAGER MANAGER MANAGING MANAGER DIRECTOR DIRECTOR MANAGER (FINANCE) DIRECTOR ADMINISTRATIVE OFFICER ANALYSTDIRECTOR (MARKETING)

CHAPTER-1

INTRODUCTION

KERAFED registered in the year 1987 as an apex body in the co-operative sector is to implement an integrated coconut production, procurement, processing and marketing project, funded by European Economic Community and National Co- Operative Development Corporation with a financial component contributed by the State Government of Kerala, to protect the interests of the growers, it was in 1993 that the federation started commercial production.

Kerafed is one of the largest coconut oil producers in India. The first plant of Kerafeds coconut oil opened at Karunagapally in Kollam district is one of the biggest such units in India. KERAFED has another plant at Naduvanoor. Now the plant is functioning with the most modern machines in most hygienic atmosphere.

Kera in Malayalam language means coconut and hence the land of Kera came to be known as Kerala. The coconut liquid provides food and drinks; the shell provides domestic utensils and fiber, the leaves provide plaiting, coir is used for flooring. No other single plant in the world has as many uses as the coconut. Kerafed is the single largest procurer of coconut/copra, produced in Kerala.

The organization study undertaken as a part of the curriculum was done at The Kerala Kera Karshaka Sahakarana Federation Ltd (KERAFED)

ORGANISATION STUDY

Thiruvananthapuram. This study helps me to learn how effectively and efficiently manage the industry/organization. The main aim of the study is to understand the various departments and functions of the organization

OBJECTIVES OF THE STUDY


To understand the companys function. To know about the various products and services of the organization. To know about the various department. To analyze the organization structure. To identify and evaluate the strengths, weakness, opportunities and threats faced by the organization.

To understand the future programmers of the company To interact with the employees at various levels of the organization in order to understand their grievances.

SCOPE OF THE STUDY


The scope of the study is to know the overall performance of the organization. It also provides a chance to see the practical constraints faced by the managers while putting theory into practice.

SIGNIFICANCE OF THE STUDY


This study aim together information on all the departments of Kerafed ltd. Thus study will enable in getting a partial exposure to the day today working of an organization.

METHODOLOGY
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The methodology adopted for this report through the collection of primary and secondary data

Primary data
Data collected by the researcher from the actual site of occurrence of events are called primary data. Primary data is obtained through observation or through direct communication with respondents in one form or another or through personal interviews. The primary data for the study obtained from:

Formal interview with the staffs Formal interview with the workers of the organization Formal interview with the managers and the departmental heads

Secondary data
Secondary data are those data which are already collected by someone else and which are already been passed through statistical process. The secondary data for the study obtained from:

From previous research reports Government publications Company records Text books Annual reports Internet www.kerafed.com

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LIMITATIONS OF THE STUDY

Certain informations are collected through the face to face interview with the employees, so there is a chance to biasing.

Due to their busy schedule the departmental heads restricted the collection of detailed information.

This study was conducted within a short period, so it is not possible to study all the aspects in detail. The detailed report of the all aspects is not much possible.

Due to the onam season the demand of coconut oil has raised so; all the employees are very busy in their works, so I cannot conduct a deep study of the coconut oil complex of Kerafed at Karunagapally, Kollam district.

CHAPTER -2
INDUSTRY PROFILE
Coconut is the most useful tree crop ever grown in the world. It is termed as horticulture crop, food crop and even as an oil seed. Coconut oil has a unique role in the diet and is an important psychological functional food. The health and nutritional benefits that can be dserived from consuming coconut oil have been recognized in many parts of the world for centuries. It is been scientifically proved that coconut oil doesnt have any toxic substances

Coconuts are part of the daily diet of many people. Its endosperm is known as the edible "flesh" of the coconut; when dried it is called copra. The oil and milk derived from it are commonly used in cooking and frying; coconut oil is also widely used in soaps and cosmetics. The clear liquid coconut water within is a refreshing drink and can be processed to create alcohol. The
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husks and leaves can be used as material to make a variety of products for furnishing and decorating. It also has cultural and religious significance in many societies that use it.

Now people are definitely switching to coconut oil all their

exclusively for

cooking needs. Coconuts play a unique role in the diet of

mankind because they are the source of important physiologically functional components which are found in the fat part of whole coconut.

Coconut oil is also known as coconut butter, is tropical oil extracted from copra (the dried inner flesh of coconut) with many applications. It constitutes 7% of total export income of the Philippines, the worlds largest exporter of the product. In recent years India has attained top position in production of coconut, overtaking.

COCONUT INDUSTRY IN INDIA


India has recently achieved the distinction of being the highest producer of coconuts in the world, having overtaken the next highest producer, the Philippine Islands. However the average coconuts produced per palm in this country is dismal, standing at about 46 nuts per palm per year in 2006-07 compared to 30 nuts per palm in 1950-51. Coconut is being cultivated in an area of over 1.94 million hectares in India. The estimated requirement of coconut seedlings in the country is in the region of 30 million per annum. About 90% of the coconut growing area is situated in the four southern states of India, with Kerala occupying about 50% of coconut cultivated area in India. Global trade is reaching towns and cities across continents and in the most remote places. Due to the changes in progress and development, there is a need for seeking out products that give added value and save time and effort. Packaged Tender Coconut Water is available 5

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outside hospitals today. The ubiquitous vendor of tender coconuts is almost on every street.

Coconut products:
1. Raw Kernel 2. Copra 3. Coconut oil 4. Tender coconut water 5. Coconut cake 6. Coconut toddy 7. Coconut shell based products 8. Coconut wood based products 9. Coconut leaves 10. Coir pith

NAFED
National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED) was established on the auspicious day of Gandhi Jayanti on 2nd October 1958. Nafed is registered under the Multi State Co-operative Societies Act. Nafed was setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers. Agricultural farmers are the main members of Nafed, who have the authority to say in the form of members of the General Body in the working of Nafed.

Objectives
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To facilitate, coordinate and promote the marketing and trading activities of the cooperative institutions in agricultural and other commodities, articles and goods

To undertake or promote on its own or on behalf of its member Institutions or the Government or Government Organizations, Inter-State and international trade and commerce and undertake, wherever necessary, sale, purchase, import, export and distribution of agricultural commodities, horticultural and forest produce, other articles and goods from various sources for pursuing its business activities and to act as the agency for canalization of export and import and interstate trade of agricultural and other commodities or articles under any scheme formulated by the Government of India or other Government agencies and to facilitate these activities, wherever necessary, to open branches/suboffices and appoint agents at any place within the country or abroad;

To undertake purchase, sale and supply of agricultural products, marketing and

processing requisites, such as manure, seeds, fertiliser, agricultural implements and machinery, packing machinery, construction requisites, processing machinery for agricultural commodities, forest produce, dairy, wool and other animal products;

To act as warehouseman under the Warehousing Act and own and construct its To act as agent of any Government agency or cooperative institution, for the

own go downs and cold storages;

purchase, sale, storage and distribution of agricultural, horticultural, forest and animal husbandry produce, wool, agricultural requisites and other consumer goods;

To act as insurance agent and to undertake all such work which is incidental to to act as insurance agent and to undertake all such work which is incidental to To organise consultancy work in various fields for the benefit of the To undertake manufacture of agricultural machinery and implements,

the same;

the same;

cooperative institutions in general and for its members in particular;

processing, packing, etc. and other production requisites and consumer articles by
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setting up manufacturing units either directly or in collaboration or as a joint venture with any other agency, including import and distribution of spare-parts and components to up-keep of the machinery/implements;

To set up storage units for storing various commodities and goods, by itself or To maintain transport units of its own or in collaboration with any other

in collaboration with any other agency in India or abroad;

organisation in India or abroad for movement of goods on land, sea, air etc.;

COMPANY PROFILE
KERAFED is the Apex Co-operative Federation of coconut farmers in Kerala and is the largest producer of coconut oil in India. KERAFED's coconut oil complex at Karunagapally in Kollam district is one of the biggest such units in India, with a capacity of 200 Tons per day.

"KERA" Brand of coconut oil is produced by kerafed from copra of the finest quality, directly procured from coconut growers in Kerala - the land of coconuts. The copra thus procured is processed using the most modern technology. In the selection and processing of copra, KERAFED employs strict quality control measures to ensure product superiority and purity. A unique two
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stage filtering process is employed by KERAFED to retain the original aroma and flavour of coconut oil for a long period.

"KERA" Brand of coconut oil is known for its quality, purity, longer shelf life and reasonable price. Its quality is conformity with the grade specifications laid down by the Bureau of Indian Standards vide IS:542-1968. Certificate of Authorisation to grade "KERA" coconut oil under AGMARK has also been obtained. "KERA" is available in HDPE bottles of 100 ml, 200 ml and 500 ml; PET bottles of 1000 ml and polythene pouches of 500 ml and 1000 ml. The raw materials used for these packings are of virgin / food grade, approved by CFTRI, Mysore / other Government approved agencies. Secondary packing is done using 3/5 ply corrugated cartons, as per specification

VISION AND MISSION OF KERAFED MOTTO


To get the support of coconut farmers. Distributing and providing healthy coconut oil to consumers

VISION

Being the leader of best quality coconut oil it has a vision to provide best value to the coconut farmers healthy oil to the consumers

MISSION

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Business Customer relation Innovation Social sector

OBJECTIVES OF KERAFED

To reduce edible oil imports. To provide an impulse effect on internal production of coconut. To develop the agricultural potential of Kerala state. To strengthen the co-operative movement. To secure the marketing of coconut and its by-products, thereby assuring economic prices to the growers.

To undertake research and development activities on production, processing and marketing. For effectively and efficiently carrying out the administrative and operational

practices on a day to day basis, the state is divided in to three regions, the central region, the northern region, and southern region. The southern region consist of the revenue districts Thiruvnanthapuram, Kollam, Pathanamthitta, and Alapuzha,

the northern region consists of Malapuram, Kozhikode, Waynad, Kannur and Kasargode districts and the central region consists of Kottayam, Idukki, Ernakulam, Thrissur, Palaghat districts, 3300 primary agriculture credit societies in each region are members of the federation to undertake production procurement, marketing activities at the farmers level. FARMER FRIENDLY ORGANIZATION

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Kerafed has been offering farmers attractive support prices for coconut and copra during unfavorable market conditions, procuring copra under the price support scheme on behalf of NAFED, Government of India and rendering value added services to enhance their earnings through improved productivity, and by assisting them in production and procurement. Kerafed also provide periodic extension activities to help farmer like demonstration farms, training camps, exhibitions, seminars and publication and distribution of bulletins and literature on coconut farming.

MEMBERS OF THE FEDERATION 1 GOVERNMENT KERALA 2 KERALA COOPERATIVE AGRICULTURAL STATE 1 OF 1

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KERALA COOPERATIVE AGRICULTURAL DEVELOPMENT LTD

STATE 1

BANK

DISTRICT COOPERATIVE 9 BANK LTD

PRIMARY COOPERATIVE 25 AGRICULTURAL BANK

PRIMARY AGRICULTURAL COOPERATIVE SOCIETIES CREDIT

900

MARKETING SOCIETIES

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PRODUCT PROFILE
KERA Brand of coconut oil is KERAFED from copra of the finest directly procured from coconut growers in Kerala the land of coconuts. The copra thus procured is processed using the most modern technology. In the selection and processing copra, KERAFED employs strict quality measures to ensure product superiority and purity. A unique two stage filtering process is employed by KERAFED to retain the original flavor of coconut oil for a long period.

KERA" Brand of coconut oil is known for its quality, purity, longer shelf life and reasonable price. Its quality is conformity with the grade specifications laid down by the Bureau of Indian Standards vide IS:542-1968. Certificate of Authorization to grade "KERA" coconut oil under AGMARK has also been obtained. "KERA" is available in HDPE bottles of 100 ml, 200 ml and 500 ml; PET bottles of 1000 ml and polythene pouches of 500 ml and 1000 ml. The raw materials used for these pickings are of virgin / food grade, approved by CFTRI, Mysore / other Government approved
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agencies. Secondary packing is done using 3/5 ply corrugated cartons, as per specifications. Apart from meeting the marketing needs in Kerala, Tamil Nadu, Karnataka, and Andra Pradesh etc, they are planning to popularize the brand in cities like New Delhi, Bangalore, Mumbai, and Kolkata. KERA has gone globally with export to Middle East countries. KERAFED had tie up with a leading retail chain in Dubai and Abu Dhabi for the two brands, cooking oil kera and hair oil kera kesh. KERA is proud to be patronized by millions as the tastiest of all cooking mediums and the smell of yore, KERA enjoys an undisputed popularity of the market share in kerala a feat achieved by ultimate customer satisfaction. Kerafed at a glimpse:

Integrated development of coconut and coconut products. Copra selection as per BIS parameters for processing Most sophisticated processing facilities Quality control laboratory with AGMARK guarantee. By far the largest coconut oil mill in India Storage capacity of 2100 tons per day A predominant share of the market in Kerala is enjoyed by Kera, the year at economical rates.

Safeguards the interests of over 29 lakhs coconut farmers in Kerala.

PRODUCTS
The various products of the KERAFED are as follows:

KERA

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It is the brand name of the coconut oil produced by Kerafed from copra of finest quality, direct produced from coconut growers. Copra is produced by the use of most modern technology. Double filtering process is used by Kerafed to retain its quality and flavor of coconut oil for a long period.

KERA KESH
In addition to production of edible coconut oil, the production and sale of

ayurvedic hair oil manufactured by Kerafed. This is available in 100ml pack.

KERA GOLD
This is an export quality of kerafed. The export is mainly to the gulf

countries. It is available in 500ml, 200ml, and 100ml pack.

KERA POPULAR & AGMARK


There are two important product of kerafed. KERA AGMARK can be getting

in one litter pack and KERA POPULAR is available in 5kg, 500ml, 100ml, and

pouches.

COPRA CAKE
This is the cake from the oil extraction process. The sale of cake is made to a

person who quotes highest price. This is sold in sacks bags. Top ten coconut producers 19 December 2009 Country Philippines Production (tonnes)

19,500,000

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Indonesia

15,319,500

India

10,894,000

Brazil

2,759,044

Sri Lanka

2,200,000

Thailand

1,721,640

Mexico

1,246,400

Vietnam

1,086,000

Papua New Guinea

677,000

Malaysia

555,120

Tanzania

370,000

ORGANIZATION CHARORGANIZATION CHART

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CHAPTER-3
DEPARTMENT ANALYSES
ORGANISATION STRUCTURE:
Organization structure is the systematic arrangement of the people working for the organization to achieve preferred goals. The structure has two dimensions,
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-horizontal and vertical. The horizontal dimension indicates the departments and vertical dimensions indicate hierarchy. Board of management elected by members of the federation is headed by a chairman. From those members an executive committee and a chairman are elected. The federation has to get the approval from the board before implementing major decision. Managing director appointed by the government of Kerala is the supreme authority of the federation, normally an outside person. Director is the top of the organization hierarchy among the employees of the organization.

THE DEPARTMENTS IN KERAFED ARE:


1. Administrative department 2. Finance department 3. Marketing department 4. Production department

ADMINISTRATIVE DEPARTMENT
In KERAFED, administrative department is responsible for general and personnel administration officer is the head of the department. Administration involves the

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formulation of overall policies and objectives. In KERAFED the administrative department is just like H.R department commonly seen in other organization. The functions of administrative department include:

Personal and general administration Keeping and measuring the confidential report of each employee for the purpose s like promo9tion, fringe benefits, training etc

To maintaining the relationship with workers and organization. Administrative function includes attendance, monitoring, recording, and controlling absenteeism etc.

Other functions like providing canteen services, ESL, provident fund accident benefits.

To provide better work atmosphere to the employees.

RECRUITMENT

To search for prospective employees and stimulating them to apply for job in the organization. Recruitment aims to develop and maintain adequate manpower resource upon which an organization can depend. Employees are recruited through:1. The Kerala state public service commission 2. By deputation from other department 3. Through direct recruitment by the board. 4. On contract basis.

The main source of recruitment and selection of employees in the organization is Kerala public service commission (KPSE). The present employee
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strength is 242 (includes permanent and casual workers). At present kerafed have 87 permanent workers, 5 deputationists, and one contract labor. In addition to this 16 persons are engaged on daily waged basis and 149 persons are employed as casual workers in karunagapally other plants.

TRAINING AND DEVELOPMENT


They provide good training facility for their workers. They also provide computer training facility for their staffs and employees. Training is the systematic programme of the organization which aims at increasing the attitudes, skills and abilities of the workers to perform a particular job. Developments are concerned with growth of employees in all respects.

EMPLOYEE COMPENSATION
KERAFED employee compensation structure contains:
1. Special allowances 2. House allowances 3. Dearness allowances 4. Basic salary

Medical scheme is also available for the workers and gratuity is given in collaboration with LIC, in addition to this plan workers and staffs are getting one day leave as compensation and ESI.

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TRADE UNIONS
Trade unions are voluntary organization of employers and employees formed to protect and promote their interests through collective action. Their presence is felt in all activities of an organization. In KERAFED there are two trade unions for employees:
1. Kerafed staff association. 2. Kerafed employees organization.

Trade unions such as CITU, AITUC, INTUC, BMS etc are function in KERAFEDs plants.

FINANCE DEPARTMENT

Finance is the foundation stone of every business in the present day set up. The success of every business depends upon adequate source of finance. Hence the statement Finance is the life blood of any business enterprise in every walk of life. So in any organization the most important department is finance department. A well managed financial or working capitals are to be at vry considerable extent, determined by its financial policies, both past and present,. Department is the strength of the business enterprise. In KERAFED finance department is headed by finance manager responsible for all the business transaction, procurement and allocation of funds are the, major function of finance department. A firm success and even survival, its ability and willingness to maintain production and investment is fixed.

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FUNCTIONS OF FINANCE DEPARTMENT


The major functions of the finance department are:1. Accounting 2. Auditing -

Internal auditing Statutory auditing Government Auditing

3. Release the payments and collecting receipts from contract with outsiders. 4. Information management 5. Budgeting

MEMBERSHIP AND SHARE CAPITAL


In the commencement of the year there were 941 members holding 57562 shares worth Rs.287820000/- this includes 55117 share invested by govt of kerala and NCDC worth Rs.27558500.

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BORROWINGS
The amount outstanding at the begening of the year under borrowings from NCDC and govt of kerala was 258797800/- and the same amount is outstanding at the end of the year.

WORKING CAPITAL
In KERAFED, at the end of the year working capital arrived at Rs. 273461673.72 SOURCE OF FUNDS The main sources of funds of KERAFED are:

Share capital contribution of govt of Kerala. Share capital contribution by cooperative institutions Loans from NCDC, cooperative banks and govt of Kerala. Grants and subsidies.

These funds are employed for the procurement of copra, marketing expenses and administrative expenses etc. Grant and share capital were the primary elements of the capital structure of the federation. It includes:

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CAPITAL STRUCTURE EEC Grant NCDC Grant Government contributions Share capital provided by member societies E

PERCENTAG 60% 20% 5% 5%

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The major investment decision requires approval of board of management. If there is an opportunity for investment, the proposal is put before the board of management. A committee from the board of management investigates the viability of the project and their findings are put before the board. The board gives approval for the project, only if it is found as viable. During the last few years the federation was in loss. An annual report, prepared by the account section and audited by an external auditor, is submitted to the registrar of cooperative societies. The price of the product is prepared on the basis of mark-up pricing method. A 10% of profit is added per unit cost of the product. From this 10%, 12% commission is given to the suppliers and retailers. For ex: Unit cost of the product is determined by the market price of the copra and the production and administration expenses. If the price of copra varies, the per unit cost also varies. Then the price of the product is adjusted according to the marketing price of the copra. Normally the suppliers are given a 20 days credit period. The credit period is as per bank guarantee and the past performance. If the supplier fails to meet the obligation within the stipulated period, the federation collects the amount from the bank. The various sections working with the finance department are:

Budgeting Commercial accounts Bill passing Cash


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Works One of the primary functions of finance department is maintaining the

books of accounts, in this process extensive use of computers are employed for the purpose of feasibility and accuracy. The trial balance is prepared on this basis of the various ledger folios and other transaction details and then profit and loss account and balance sheet is prepared based on trial balance.

Budgeting
Budgeting is one of the other vital activities undertaken by the department. The budgeting process involves prediction of future sales and the preparation of estimates based on that sales. Dates such as future sales are provided by the marketing department on the basis of past sales details and current market conditions. The future production, labor, cash, and other resource requirements are defined in the budget.

Commercial accountants
The process of internal auditing is conducted by cooperative wing

auditor assisted by the finance department and statutory audit by an professional charted accounted. The finance department of Kerafed conducts inspection of concerned transaction details of primary cooperative societies.

Cash section
Salaries and wages of the employees are prepared in this section. The cash section deals with the payment and receipt of cash. The payment exceeding Rs. 20000 will be in cheques.

MARKETING DEPARTMET
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Marketing is the wide range of activities involved in making sure that the company is continuing to meet the needs of their customers and are getting appropriate value in return. It is concerned with promoting the companys product and services in the market for achieving maximum sales. KERAFED has an aggressive marketing strategy. In an resent survey the brand KERA has bagged second position in Kerala after milma. So the company is not investing much in promoting their product.

The marketing department consists of a manager, below him comes the assistant manager, senior assistant and assistant, below him comes the assistant manager, senior assistant and assistant, below him comes typist and attender. Advertising campaign was handled by STRAK communications Trivandrum. The federation has reduced the quantum of advertisement. Television and print media is the main media to communicate with the customers. And now a day they are more concentrating on exhibition s as promotion. In most of the triveni and supplyco stores KERA coconut oil is selling like a hot cake because all people are buying product from these stores at less costs during the festival seasons like Onam, Ramzan etc. KERA has a good distribution channel, reaching each and every taluk in Kerala. With most extensive procurement channels, most modern processing facilities and a massive storage capacity of 2100 tones with stock points in prominent cities in Kerala helps the federation to ensure availability of KERA to each and every consumers. KERA is currently part of the biggest retail network-CSD, ministry of defence, oil seed cooperation like Karnataka oil federation; Tamil Nadu cooperative growers federation (TANCOF) and oil federation of Madhya Pradesh will soon be complimenting the already existing marketing and sales channels of a KERA, in their respective states.

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The sales turnover of KERA brand coconut oil is marked a steady increase during the past few years. In order to increase the sales turnover the federation has decided to convert Mobile team officers in to field offices and posted permanent staff instead of personnel on contracts and deputation. Because of these change a steady progress is seen in both in the procurement of copra as well as sale of Kera oil.

Functions of Marketing Department

To find new markets. Deciding pricing strategies Strengthening the agency network Appointment of agencies Forecasting the demand Creating awareness Collection of payments Grievance redressal of customers Keeping the relevant information and exchanging with other department

Objectives of Marketing Department


The main objectives of marketing department in KERAFED are:

Selection and appointment of stockiest/direct sales customers and others.


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Price fixation of sales commission and overall sales policy including market budget.

Order evaluation and acceptance of order registers, priority, booking registers, dispatch registers etc.

To increase sales there are some marketing techniques adopted, mainly the 4ps are used to furnish their business. They are:

Price
Price is the money customers have to pay to obtain the product. Price mainly involves decisions regarding base price, discount price, discount allowances, freight payment, credit etc. pricing effect many factors including employees, share holders, competitors and the public at large.

Place (distribution)
KERAFEDs products are distributed through various outlets; include both private and public institutions. KERAFED is noted for its goods procurement channel, better processing facilities and for a very big storage capacity. It has its stock point in prominent cities, which help the organization to ensure availability of KERAFEDs product to the customers. KERA has made its presents in felt in states like Madhya Pradesh, Tamil Nadu, Andhra Pradesh and Karnataka also. KERAFED had tie up with a leading retail chain in Dubai and Abu Dhabi for the two brands, cooking oil Kera and hair oil Kera Kesh.

Promotion
Sales promotion is an important and specialized function of marketing department. Promotion covers advertising, personal selling and sales promotion. Advertisement of Kerafed products are mainly done through media and such
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type of things are done by star communication. Television and print media is the main media to communicate with the customers. And now a day they are more concentrating on exhibition s as promotion.

Sales volume of KERAFED


KERAFED continuous to play a dominant role as cooking oil in the Kerala market. Between 400 and 600 tones of Kera coconut cooking oil was sold in Kerala in pouches, every month. Kerafed expects to sell about 20 tones of coconut cooking oil in the gulf market every month. Sales keep on creating records during every onam seasons.

Kera sales volume 1 LITTER 500ml 100ml and others 75% 20% 5%

Competitors
The main competitors of KERAFED in the state are:

KPL SUDHI THEJAS KLF NIRMAL


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Parachute is the main market leader in the Indian branded coconut oil industry. The main players in the Indian market are SHALIMAR, COCO CARE, TATA products etc.

PRODUCTION DEPARTMENT
The production department function of KERAFED is to produce the product according to the demand. Production department undertakes the process of transformation of copra into oil and oil cake. A series of processing is used to convert copra into oil. The machines and equipments in kerafed installed is in straight line basis. KERAFED has two production units, KERAFED oil complex in Karunagapalli and KERAFED coconut complex at Naduvannur, Calicut. The capacity of the plan is 200MTPD (Metric tons per day). Plan manager is the head of units and the plant has two main functional areas production and quality control. The two major commercial products derived from coconut are coconut oil and copra. Copra is dried meat(endosperm) of the coconut and oil is extracted from it through a mechanical process. Copra making is a systematic process through which the fresh meat of coconut containing 50-55 percent moisture is dried either in sunlight or using other sources of energy, to bring down the moisture content to 5-6 percent.

Functions of production department


The production department in Kerafed has many important functions, which are as follows:

To prepare detailed production plans consistent with companies production objectives

To receiving raw material and packing final product To take the corrective actions from the point of the quality assurance to the customers.
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To ensures implementation of safety measures in the preparation of equipments and process to avoid dangers to the structures, equipments and men.

The production department of Kerafed has the following three divisions.


Storage division Manufacturing division Packing and filling unit

Hierarchy of production plant Storage division


The storage capacity of go down is 6000tonnes. The godown section is headed by an officer in charge whose office is situated inside the go down. He maintains the record presenting the intake of copra and also transfer of copra to the manufacturing division.

Manufacturing Division
The manufacturing unit is headed by a technical officer whose cabin is situated within the manufacturing unit. The production plan of the units depends on the market demand of the product. It depends or varies on the festival seasons. More products are required during the festival seasons especially during Onam. The machines that are used in extracting the oil are:
1) Conveyor systems used for copra loading 2) Copra cutting cutter for slicing copra 3) Boiler system for heating copra 4) Expellers for copra crushing

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5) Filters for oil filtering 6) Tanks for oil storage 7) Packaging

Production process
In the manufacturing unit dried copra is received through the conveyors and is directly passed through a cutting machine and their it goes for crushing. After crushing, the copra is converted into small pieces which are required for extraction. These small pieces are transferred to the expellers by small passages consisting of crushed blades and gates. The crusher blades cut the pieces of copra into smaller pieces before being fed into expellers. The purpose of gates is to check the flow of unwanted substances into expellers. The crush copra is then put into the expellers and first extract oil, second extracted oil is then passed on to the first filter and then second filter. This process of double filtration provides pure and high quality oil. This oil is then passed on to the storage tanks through pipelines and the oil is stored in the bulk for sediments in order to get clear oil for one week. After one week it is used for packing and filling. The oil cake obtained as by-product will find a ready market as cattle feed and in the manufacture of mixed cattle feeds.

Packing and filling unit


Packing and filling unit is highly mechanized and here oil is usually packed in different packs i.e., from 6ml sachets to 15kg tins. As per the demand the packing division takes oil from the storage tanks and uses it for filling into sachets, pouches and bottles.
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This section is headed my a separate officer, shift in charge whose cabin is located inside the packing unit. Bottle filling line in the plant can automatically fill and seal bottles. Quality check process in this unit is undertaken under two levels, increases of the oil quality and also the quality of the packing material. Before any oil is used for packing the quality control lab technically checks that the lots of oil on the basis of specified guidelines due approved, the process of packing is undertaken. The price of the product varies frequently and on that basis the machine is adjusted to print the existing price

Coconut oil sale Sale of Kera coconut oil Year 20052006 20062007 20072008 20082009 20092010 2010-2011 (up to 31-1234

ORGANISATION STUDY

2010) Kera coconut oil 4768 sold 5655 7359 9957 10310 10202

TURNOVER TURNOVER (Rs.Lakhs)

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011(up to31-12-2010)

3726.45 4790.41 6448.34 8004.78 19160.37 11346.58

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Zone wise sales of Kera oil in Kerala during 2010-2011(up to 31-12-2010)in M tones

Zone wise sales of Kera oil in Kerala during 2010-2011(up to 31-12-2010)in M tones

South Zone Central Zone North Zone Total

6019 2368 1714 10101

Trade Profit (Lakhs)

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year

(Rs.Lakhs)

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011(up to 31-12-2010)

-457.90 266.78 550.41 637.67 1094.38 907.27

QUALITY
In manufacturing, and consistent a measure of adherence to excellence measurable or and a state of being free to

from defects, deficiencies, and significant variations, brought about by the strict verifiable standards achieve uniformity of output that satisfies specific customer

or user requirements. ISO 8402-1986 standard defines quality as "the totality of features and characteristics of a product or service that bears its ability to satisfy stated or implied needs."

QUALITY CONTROL

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Quality control, or QC for short, is a process by which entities review the quality of all factors involved in production. This approach places an emphasis on three aspects:
1.

Elements such as controls, job management, defined and well managed

processes, performance and integrity criteria, and identification of records


2. 3.

Competence, such as knowledge, skills, experience, and qualifications Soft elements, such as personnel integrity, confidence, organizational

culture, motivation, team spirit, and quality relationships.


The quality of the outputs is at risk if any of these three aspects is deficient in any way. Quality control emphasizes testing of products to uncover defects and reporting to management who make the decision to allow or deny product release, whereas quality assurance attempts to improve and stabilize production (and associated processes) to avoid, or at least minimize, issues which led to the defect(s) in the first place. For contract work, particularly work awarded by government agencies, quality control issues are among the top reasons for not renewing a contract.

QUALITY CONTROL DEPARTMENT


The organization quality control laboratory meet Agmark parameters confirm the purity of kera. A unique two stage filtering process is employed by kerafed to retain the original aroma and flavors of coconut oil for a long period Copra with moisture content below6% is normally. Accepted for processing in KERAFED. Once the quality report is ready from section, the material receipt and service and service request prepared by the procurement section is given to
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Account section for the approval of the cost of material and then passed by plant manager

Copra procurement by KERAFED


Copra Procurement

year

(Rs.Lakhs)

2005-2006

7671
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2006-2007 2007-2008 2008-2009 2009-2010 2010-2011(up to 31-12-2010)

9502 10890 16379 11038

Copra crushing

2005-2006 2006--2007 2007-2008 2008-2009 2009-2010

2010-2011 (up to 31-12)

Karunagapally 5203 Naduvanoor Total 2886 8089

5666 3660 9326

7272 3756 11028

9885 5081 14966

12074 4620 16694

11718 4169 15887

Production of coconut oil

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2005-2006 2006--2007 2007-2008 2008-2009

2009-2010

2010-2011 (up to 31-12)

Karunagapally Naduvanoor Total

3329 1847 5076

3618 2359 5977

4656 2422 7078

6330 3277 9607

7706 2980 10686

7504 2693 10197

Production of CN oil cake


2005-2006 2006--2007 2007-2008 2008-2009 2009-2010 2010-2011 (up to 31-12) Karunagapally Naduvanoor Total 1731 891 2622 1829 1147 2976 2360 1182 3542 3213 1620 4833 3986 1480 5466 3761 1350 5111

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MANUFACTURING UNIT

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QUALITY CONTROL PROCESS CHART

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CHAPTER-4

SWOT ANALYSIS

Strength

Most popular brand name KERA. The quality of the products is excellent. Most modern machinery for oil extraction Plants have adequate production capacity Strong network of primary co-operative societies in the state All support from government Follow a very strict quality control measures

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Weakness

Seasonal variation badly affects the procurement of copra Many times Kerafed is forced to procure copra at a price greater than the market price, as per the direction of NAFED

Lack of promotional activities Not utilizing the installed capacity of production units. Lack of advertisement

Opportunity

Diversification of the product Advertisement and promotional activities the market can be expanded to other states

Target of work may be fixed in all sections Adequate support from NAFED, state government and cooperative societies Most modern technology is used here.

Threat

Unfiltered coconut oil obtained from other states is available in market at low prices.

There are some arguments that coconut oil as edible oil cause health problem Heavy competition from private companies
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There are other cooking oils which are available at very cheap rates.

CHAPTER-5
FINDINGS AND SUGGESTIONS Findings

KERA has very good brand image. KERA coconut oil is used for cooking and as hair oil. Lack of supervision and management. The inadequate supply of copra adversely affects the function of the federation. Rural people prefer more kerafed product. Not much importance is given on exporting. Lack of raw materials in peak time Kerafeds plant at kollam is not functioning at its full capacity

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At present advertisement of the kera coconut oil is less compared to their competitors

Recommendations

More capital should be released for advertising and sales promotion Give some more attention to export markets. Proper and efficient supervision and management is necessary at oil complex at Karunagapally.

Market can be expanded to all over India as coconut oil contains health benefits and also used in medicines.

The pricing method of kera should be examined and price should be renewed periodically.

CHAPTER-6
CONCLUTION

The organization study covers all the theoretical and the practical matters of The Kerala Kera Karshaka Sahakarana Federation Ltd, (KERAFED), Thiruvananthapuram. It covers functional analysis, organizational structure, various departments, manufacturing units, and quality control techniques, promotional and marketing activities of KERAFED. Kera has a strong and powerful brand image. But Kerafed dont try to utilize their maximum production capacity which, it creates some unavailability of their product in the market. If they are willing to utilize their maximum production capacity Kerafed can easily become the No 1 coconut oil producer in the world. And Kerafed should renew their price periodically; it creates
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more attraction of their product among the customers. Initially KERAFED was formed for the betterment of Kera farmers, but today the company should keep good relationship between the farmers for making better result.

CHAPTER-7
BIBILIOGRAPHY

Annual report of KERAFED,2010 Sahari Gupta.K, Neeti Gupta, Financial management, Kalyani publications,New Delhi.

Kothari, Research Methodology, A New Age International publication, New Delhi.

www.kerafed.com
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