INTERNSHIP REPORT ON A STUDY ON CUSTOMER

A STUDY ON CUSTOMER SATISFICATION ON THE KERALA FEED LTD.

INTERNSHIP REPORT ON

A STUDY ON CUSTOMER SATISFACTION ON THE KERALA FEED LTD.

AT

KERALA FEEDS,KALLETTUMKARA,THRISSUR,KERALA

BY

YADHU.J.MENON

USN NO : 1NZ13MBA56

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY,BELGAUM

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

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Dr. SHEELAN MISRA Mr. SANKAR.P

HOD,PROFESSER, ASST.MARKETING MANAGER

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZONCOLLEGE OF ENGINEERING

Outer Ring Road, Bellandur Post, Near Marathalli ,Bangalore-560103





ACKNOWLEDGEMENT

I thank the almighty God for the blessing that have been showered upon me to complete the

project successfully.

I am extremely thankful to the Managing Director Dr. Ani S. Das and , SANKAR.P ,Marketing

Manager, Kerala feed Ltd. Kallettumkara, Thrissur the valuable suggestions, observation,

and encouragement, which helped me a great deal in accomplishment of this project work.

I express my sincere thanks to Dr. MANJUNATHA, Principal of NEW HORIZON COLLEGE

OF ENGINEERING for providing me the opportunity to conduct this research project.

I express by deep sense of gratitude to Dr. SHEELAN MISRA , Director of Dept. of

management studies and my internal guide Dr. SHEELAN MISRA Department of

management studies, and my dear colleagues for their valuable inputs.

I also express thanks to my family members and friends for the love and support that they gave

me during the time of the project.

Place: YADHU.J.MENON

Date : 1NZ13MBA56


TABLE OF CONTENT

SL.NO

PARTICULARS

PAGE NO.

EXECUTIVE SUMMARY

CHAPTER

1.

1.1 INTRODUCTION

1.2 TOPIC CHOSEN FOR THE STUDY

1.3 NEED OF THE STUDY

1.4 OBJECTIVES OF STUDY

1.5 SCOPE OF THE STUDY

1.6 RESEARCH METHODOLOGY

1.7 LITERATURE REVIEW

1.8 LIMITATIONS OF THE STUDY

1

1

2

2

2

2

3

5

8

CHAPTER

2.

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILES

2.3 SWOT ANALYSIS

2.4 FINANCIAL STATEMENT

9

17

31

34

CHAPTER

3.

3.1 THEORETICAL CONCEPTS

36

CHAPTER

4.

4.1DATA ANALYSIS AND INTERPRETATION

41

CHAPTER

5.

5.1 FINDINGS

5.2 SUGGESTIONS

5.3 CONCLUSION

72

74

75

6. BIBLIOGRAPHY

7. ANNEXURE


LIST OF TABLE

TABLE NO. TITLE PAGE NO

1 Table showing the number of years the customer are use the product with Kerala feeds

41

2 Table showing the customer satisfaction with the quality of the product

43

3 Table showing the factors that influenced to the purchasing the product.

45

4 Table showing the weather customer have used any other company products

47

5 Table showing the customer satisfied with the price of the product

49

6 Table sowing the respondents regarding the recommend of product the other customer

51

7 Table showing the need of more promotional activities for the company’s products

53

8 Table showing the response regarding the purchasing frequency of products at Kerala feed Ltd

55

9 Table showing the response regarding the rate of marketing potential and demand for the products at Kerala feed Ltd

57

10 Table showing the satisfaction level regarding rate of distribution system provided by Kerala feed Ltd

59

11 Table showing the what is the most common promotional method of Kerala feed Ltd

61

12 Table showing the response regarding the rating of packaging quality of products at Kerala feed Ltd

62

13 Table showing the category of products at Kerala feed Ltd. is having the demand in the market

64

14 Table showing the medium through which customer came to know about this product

66

15 Table showing the suggestion regarding improving the performance of product sale by Kerala feed Ltd

68

16 Table showing the satisfaction level regarding the overall performance of Kerala feed Ltd

70


TABLE OF GRAPH

TABLE NO. TITLE PAGE NO

1 Graph showing the number of years the customer are use the product with Kerala feeds

42

2 Graph showing the customer satisfaction with the quality of the product

44

3 Graph showing the factors that influenced to the purchasing the product.

46

4 Graph showing the weather customer have used any other company products

48

5 Graph showing the customer satisfied with the price of the product

50

6 Graph showing the respondents regarding the recommend of product the other customer

52

7 Graph showing the need of more promotional activities for the company’s products

54

8 Graph showing the response regarding the purchasing frequency of products at Kerala feed Ltd

56

9 Graph showing the response regarding the rate of marketing potential and demand for the products at Kerala feed Ltd

58

10 Graph showing the satisfaction level regarding rate of distribution system provided by Kerala feed Ltd

60

11 Graph showing the what is the most common promotional method of Kerala feed Ltd

61

12 Graph showing the response regarding the rating of packaging quality of products at Kerala feed Ltd

63

13 Graph showing the category of products at Kerala feed Ltd. is having the demand in the market

65

14 Graph showing the medium through which customer came to know about this product

67

15 Graph showing the suggestion regarding improving the performance of product sale by Kerala feed Ltd

69

16 Graph showing the satisfaction level regarding the overall performance of Kerala feed Ltd

71


EXECUTIVESUMMARY

The project titled “CUSTOMER SATISFACTION ON THE KERALA FEED. LTD” is

undertaken in Kerala feed Ltd. The Customer’s satisfaction is essential and which companies

should focus on, in any business that does not succeed in satisfying its customers, there is very

high tendency that the customers may not patronize the business again. Satisfied customers are

likely to be loyal and continue patronizing than dissatisfied customers.

All business is build based on relationships Understanding customer relationship management or

relationship marketing has become a necessity for understanding how to manage businesses in

the service competition. When building customer relationship or loyalty it is important to have

customer satisfaction Therefore, in order to build customer loyalty or relationships, businesses

have to work hard on customer satisfaction. In a win-win situation, business focus on profit and

happy customers; and customers try to satisfy their needs. For this study the area for survey was

all over 3 villages surrounding the factory namely Kallettumkara, Kodakara and Muriyaad. The

data collected by researcher through surveys and other sources are analyzed with the help of

statistical tools and techniques for the purpose of getting a final and accurate findings and

conclusions.

The first chapter give a brief introduction about the internship, topic chosen and the research

methodologies. The second chapter gives a brief summary of industry and company profile. The

third chapter is basically on the theoretical background and details on customer satisfaction. The

fourth chapter is on the analysis on survey and graphical representation and interpretation.

The last chapter is on the findings on survey and some suggestions that could be made as to

introduce the customer satisfaction.


CHAPTER 1


1

1.1 INTRODUCTION

Cattle feed industry, a major ingredient of animal feed industry is currently evolving from a

fragmented industry into an organized sector. The feed manufactures are using increasingly

modern and sophisticated methods in an effort to incorporate best global practices. Cattle feed

industry has got high potential for growth, given that India is the world’s leading producer of

milk, and production is expected to grow at compounded annual growth rate of 4 per cent.

It is Both primary and secondary data are collected for the study and collect various details

about the customer satisfaction process of Kerala feeds in Kallettumkara. So customer

satisfaction process helps an organization to find out the area where the company should improve

and to find out the factors which affect the organization. It also use for comparing performance

of company for different customers.

Marketing strategy is the total and unbeatable instrument or a plan shaped design specifically for

attaining the marketing objectives of a firm and also to understand about the importance and the

role of the marketing department plays in the organization. So, this study is essential to analyze

the effectiveness of the marketing department in the organization and also to understand about

the importance and the role of functions that performed by the marketing department in the

organization. A fair marketing study will help the organization to develop further. So, the

suggestions given by the organization very high systematic manner

1.2Topic chosen for the study

The topic chosen is “customer satisfaction of Kerala Feeds ltd.

The research was undertaken to study and analyze the consumer’s preference towards the Kerala

feed ltd. There are various factors that adversely affect the consumer’s buying behavior to Kerala

feed Ltd. This study helped to identify the specific factors, which influence the consumers


2

1.3NEED FOR THE STUDY

The research was undertaken to study and analyze the consumer’s preference towards the Kerala

feed ltd. There are various factors that adversely affect the consumer’s buying behavior to Kerala

feed Ltd. This study helped to identify the specific factors, which influence the consumers.

Consumer’s preference involves perceptions about the products, so different organization try to

keep their products with different prospective qualities, may have different products. This study

has helped to understand the consumer’s response towards the Kerala feed Ltd.

1.4 OBJECTIVES OF STUDY

Objectives of project work is:

To analyse the customer satisfaction of the productsof Kerala feeds Ltd.

To find out the factorseffecting customer buying behaviour of Kerala feeds ltd.

To understandthe promotional strategies of the organisation.

To understand effectivenessof the distribution system of Kerala Feeds Ltd.

1.5 SCOPE OF THE STUDY

The customer is the person or group of the person, who decide what to buy and what not to buy.

In competitive Environment one cannot thrust a product on consumer. He has to produce what is

demanded. The marketing personnel study on consumers towards the Kerala feed Ltd.

After study on consumer preference towards the Kerala feed Ltd, manufacturer tries to find out

what changes are required in existing products, how sales can be pushed of existing products,

what changes required to get larger market share.


3

The responds of consumers of Kerala feeds Ltd would be relevant for the Kerala feed Ltd

industries for adapting their marketing strategy to the changed marketing environment

1.6 RESEARCH METHODOLOGY

RESEARCH TYPE

The type of research design used for this study is the descriptive research design. Descriptive

research for fact finding. The major use of descriptive research is the state of affairs, as it exists

present.

TYPE OF DATA

The task of collection begins after a research problem has been defined and research chalked out.

While deciding about the method of data collection to be used for study, the researcher should

keep in mind 2 types of data, they are

1. Primary data

2. Secondary data

Primary data:-

Primary data are those, which are collected afresh and for the first time this happen to be original

in character. Primary data can be obtained either through observation or through direct

communication with respondents is one from to another through personal interview. In this

project work the researcher, collected Primary data mainly through questionnaire and response

were taken trough face- to –face approaches

Secondary Data:-

Secondary Data is the data that already exists and in ready to use format and gathered by

somebody else. This data can be in the form of articles in magazines, journals, government

reports or any other historical data. It might even be the different articles in newspaper and on

the internet blogs. Secondary Data that would be used by researcher in the research process as

supportive documents are from the various newspaper articles, magazines related to specific

industry, books and company internet sites.


4

The method here going to use is primary data collection method though we need firsthand

information from the respondents. The instrument going to use in primary data will be survey

method whereas a survey of the farmers.

SAMPLING:-

Target Population

Target population for this research would be farmers.

Sample Unit

Sample unit for this research would be farmers of a selected area.

Sampling Technique

Questionnaire and personal interview.

Sample Size

150

Sampling Methods

There are mainly two of sampling methods which are being used by the marketers:

1. Probability Sampling (Random Sampling)

2. Non – probability Sampling

Probability sampling is a method for drawing a sample from a population such that all possible

samples have a known and specified probability of being drawn. Non probability sampling is a

sampling procedure in which the selection of population elements is based in part on the

judgment of the researcher or field interviewer. The sampling method for this report would be

probability sampling because here each sample has equal chance of being selected and again it

would be stratified random sampling


5

1.7 LITERATURE REVIEW

The literature review is about customer expectations, customer perceptions, customer satisfaction

and their association with the service they receive. The literature describes customer satisfaction

as a problem which has become a major issue.

Consumer satisfaction has gained increasing attention in recent years (e.g. Peterson and

Wilson,1992 ;Fomelle/ al., 1996; Spreng and Mackoy ; 1996 ; Bernhardt et al., 2000 ; Ofir and

Simonson , 2005) . Most writers agree that satisfied consumers represent a value for A1

Company. In fact Peterson and Wilson (1992) point out that “satisfying customers is the primary

obligation of a company “. Previous research indicates that satisfaction has impact on ROI

(Anderson al., 1994), shareholder value (Ittner and Larcker , 1996), higher market share and

profit (Fomell, 1992 ; homburg and Rudolph,2001), customer loyalty (Bearder and teal , 1983 ;

Kristensene? Al., 2000), and overall firm performance (Anderson and Sullivan , 1993).

The companies while making business strategies, incorporates a strategy to achieve customer

satisfaction (Reichheld&Sasser , 1990 ; Rust&Zahorik, 1993). Drucker (1973) states it as the

reason of successful business and according to clay comp & martin (2002) customer satisfaction

is a basis principle of relationship marketing and management .Anderson et al (1994) think that

customer satisfaction is a helpful factor in giving organizations an edge over their customers.

According to (Reichheld&Sassar , 1990, Anderson et al, 1997 concepts of corporate profitability

, customer satisfaction and customer loyalty , and customer retention are interlinked . there is

strong and positive relationship between customer satisfaction and corporate profitability . it has

been seen in many industries that the companies who achieve greater customer satisfaction , rare

are the chances of losing their customers which means customer satisfaction leads to customer

retention and they flourish economically .


6

Another study states that the customer become the loyal customer (Anderson &Sullivan , 1993,

Fomell , 1992 , The more the loyalty of the customer would be the better would be the profit gain

(Reichheld& teal ,1996).

Customer expectation if not fulfilled, leads to three stages and then customer complaints. This

complaining is the post purchase behavior. These three stages are delight, satisfaction and

dissatisfaction. If the customer is pleased , satisfied and delighted , he / she admires the services

(Leventhal , 2006). When the customer is not satisfied he/she express disappointment and

complains about the quality of service (santos&boote,2003).

(Ojasalo,2001) noted that , fuzzy expectations are those that are formed when customers are

uncertain about the things they are expecting , they want something but they fail to comprehend

what they want actually . If these expectations are not met, customers are dissatisfied but they do

not understand why it happened and what they wanted. Such customers are more prone towards

switching behavior and switch to other service provider without realizing the reason and benefits.

The opposite of this concept is precise expectations. (Ojasalo , 2001)

(ojasalo,2001), also observed that implicit expectations are associated with situations when the

products are meant to be delivered just according to the expectations of customers and customers

do not want to even think about it what will happen if the services will not be delivered the way

they are expecting . If these expectations are not met, they become prominent and are felt by the

customers. Explicit expectations, on the other hand are well defined in customers mind.

Customers are conscious about these expectations and about whether they are met or not.

In short term the customer satisfaction is achieved immediately but it does not last for a long

time while in long time, the satisfaction doesn’t. Come immediately but lasts over a long period

of these two, long term quality holds significance in order to have lasting relationship with the

customers (Ojasalo , 19999).


7

According to (mick and Fournier , 1999), most studies on customer satisfaction have been

conducted within the comparison standards (CS) paradigm , which posits that consumers hold

preconception preferences , observe product , performance , compare performance with their

standards. Form confirmation or disconfirmation perceptions, combine these perceptions with

standards level, and then form summary satisfaction judgment.

According to (Churchill and Suprenant , 1982 ) consumers form expectations toward a product

on the basis of some internal and external cues. The product is then experienced and evaluated,

and the outcome (i.e., performance of the product) is then compared with the expectations. As a

result of the expectations are either confirmed or disconfirmed. In the case of negative

disconfirmation the consumer becomes more or less unsatisfied which may have negative

consequences for the repeat purchase of the product. When the expectations are confirmed, or

perhaps even exceeding leading to positive disconfirmation, the consumer becomes satisfied.

Which may have positive consequences for the repeat purchase of the product .

In addition Spreng and Meckoy (1996) and Montfortet al. (2000) among others found that

expectations had a direct influence on perception on performance.

According to (Szymanski and Henard (2001)), they propose that modelling performance as a

separate predictor of satisfaction follows directly from the notion of value percept diversity ; that

is , customers are likely to be more satisfied with the offering as the ability of the offering to

provide consumers what they need , want , or desire increases relative to costs incurred “

According to (Anderson 1994 , Andersonand Sullivan 1993 , Bryant and cha 1996 , gronholdt et

al . 2000 , homburg and Giering 2001 Mittal and Kamakura 2001) they have concluded that

customer , firm and industry differences result in varying levels of customer satisfaction ,

customer loyalty association (i.e. , the sensitivity of a change in loyalty according to a change in

satisfaction ) . Thus failure to account for these competitive setting differences is likely to be the

primary reason for the relatively modest predictive power of customer satisfaction over customer

loyalty and heterogeneity with respect to the satisfaction loyalty relationship.


8

(Anderson19994) has concluded that consumer satisfaction can be an essential measure used to

oversee business outcomes, decide on limited resource allocation and provide rewards to

management.

Bowen and Chen (2001) state that an individual may reside at a hotel because it has the most

convenient location. Nevertheless, an individual may also change to a new hotel when it is

located across the street and provides better deals .as this example illustrates, repeat purchase

behavior does not always indicate commitment,rather, it many signify a random actual repeat

purchase or spurious loyalty . Yet, the superior’s loyalty can be disregarded when attitudinal

loyalty is the construct of interest.

1.8Limitations of the study

1. This survey is concentrated only at the region that are in close proximity to

Thrissur . So, when it comes to generalization for a state, based upon this data, it

will be meaningless.

2. Random sampling method is chosen for this purpose, as a result there can be

elements of bias derived from the choice of places and locations from where I

collect the data

3. Generally the respondents were busy in their work and were not interested in

responding rightly, and some of the respondents had some problems reading the

questionnaire.

4. Most respondents may be lacking proper knowledge / usage experiences of

various products offered by the company so they were unable to provide exact

information


CHAPTER 2


9

2.1INDUSTRY PROFILE

The feed industry has modern computerized plants and the latest equipment for analytical

procedures and least coat ratio formulation and it employs the latest manufacturing technology.

The organized sector of the compound feed industry is facing serious problems resulting from

huge idle capacity, to extent of 50% or more. Global participants of the feed business and by

national as well as multinational integrators are adding new capacities.

The nature of animal feed and the poultry feed industry has completely changed. Production of

cattle feed is an important activity in rural and semi-urban area. Even today in rural india

particularly eastern region, agriculture is very largely cattle based. Very little activity is

mechanized. A part from farming activity, a large part of rural livelihood depends on cattle .

It is only source of milk. Organic manure and fuel requirement is met from the extra of the cattle.

Entire diary industry and meat is depending on the cattle raring. Therefore, the requirement of

cattle feed for both a domestic animal as well as commercial cattle is huge. The beginning of the

industrial scale production of animal feeds can be traced back to the late 1800s, this is around the

time that advances in human and animal nutrition was unable to identify of a balanced diet, by

processing certain raw materials.

Afterwards world feed producer purina feeds was established in 1894 by William H. Dan Forth.

Cargill which was mainly dealing in grains from its beginnings in1865, started to deal in feed at

about 1884. The feed industry expanded rapidly in first quarter of the 1900s with “purina”

expanding its operations into Canada, and opened its first feed mill in 1927(which is in

operation). In 1928 the feed industry was revolutionized by the introduction of the first selected

feeds-purina checkers.

India is one of the largest population of cattle in the world. Feed manufacturing on a commercial

and scientific basis started around 1965 with the setting up of medium sized feed plants in India.

It is restricted to dairy and poultry sector. Given the important of feed ingredients, Indian

scientists have worked on various aspects of research and development in the field of animal


10

feeds and feeding. In the 1960s, all Indian raw material were analyzed for their proximate

composition, metabolically energy values and deleterious factors.

During the 1970s. the government sanctioned special projects to study the use of by products in

animal feeds. Various by-products were considered and their nutritional parameters studied.

Indian scientists analyzed ingredients for their chemical values and studied their biological

values , and this information was useful to the industry in the initial stages of growth. In the

1970s and 1980s subsequent research was conducted on the energy-protein and energy-amino

acid ratios and the vitamin and mineral requirements of animals.

2.1.1PRESENT STATUS OF THE INDUSTRY:-

The feed industry modern computerized plants and the latest equipment for analytical procedures

and least-cost rations formulation, and it employs the latest manufacturing technology. In India,

most research work on animal feeds is practical and focuses on the use of by products, the

upgrading of ingredients and the enhancing of productivity. The quality standards of Indian

feeds are high and up to international levels.

Raw materials for feed are adequately available in India. The industry’s production is about 3.0

million tones, which represents only 5 percent of the total potential, and feed exports are not very

high. The country has entered in to a period of liberalization and this is bound to influence the

livestock industry. The per capita consumption of milk, eggs and broiler meat will grow. The

Indian feed industry is undergoing a very exciting phase of growth for the next decade. Today,

the Indian feed industry is worth approximately Rs 45 billion, that is about US$1 billion.

Dairy cattle:

Worldwide, India is number one in milk production, at 78.0 million tons per annum, and the

dairy industry is spread across the whole country. India has one of the largest populations of

cattle and buffalo in the world. In a total of 288 million head, there are 10 million cross-bred

cows, 15 million good milk cows of local varieties and 36 million buffaloes of good milk

varieties.


11

The reminder of the cattle populations of a non-descript variety and a sizeable proportion

consists of bullocks. The remainder of the cattle population is of non-descript variety and a

sizeable proportion consists of bullocks. The cross-bred population is either Jersey or Holstein-

Friesian, crossed with local cows. Cross-breeding was a natural solution to upgrading the milk

yield in the absence of high value imported varieties of pure-bred animals.

The buffalo breeds are unique to India, and produce milk with a fat content of 7 to 8 percent.

Milk is seen as a health drink and a variety of Indian sweets are prepared from milk. The ice-

cream market is growing. Farms are located on the outskirts of cities and within cities. Almost

all villages have number of cattle, but there are only a few organized dairy farms. In India, diary

is not so much an industry as a smallholder faming activity.

Growth in the milk sector has occurred mainly through cooperative efforts. Cooperatives started

by supplying milk collection centers, where milk was collected from villagers in quantities as

small as 1 liter, and gradually started to provide other services to farmers, including education,

artificial insemination, veterinary health support and feeding. The small farmers became

prosperous, loan facilities were made available through banks and member farmers started to

share the profits from cooperatives.

Cooperatives also set up their own modern comprised feed plants. They have modern milk

processing plants from which they produce and market pasteurized milk, butter, butter oil,

chocolate, ice-cream and milk sweets, which are very popular with Indian consumers. Today, the

feed production from cooperative is about 0.6 million tons per year.

The national Dairy Development Board (NDDB), which has excellent facilities for research on

breeding , nutrition and health care, has played a pivotal role in setting up cooperatives. Without

NDDB and several of the existing diary cooperatives, the milk sector in India would have

suffered. The dairy industry in India is expected to grow, but growth will be restricted to

individual small farmers. It is unlikely that India will see the advent of large, organized dairy

farming in the near future.


12

2.1.2FEEDSTUFFS AND INGREDIENTS IN ANIMAL FEEDS:-

India is currently self-sufficient in livestock feeds and does not depend on imports. Instead, the

country exports large quantities of solvent extracted meals, which are a major source of foreign

exchange earnings

Creates and grains

Maize, sorghum and bajra ( a type of millet) are commonly used in animal feeds. Wheat and rice

are mainly retained for human consumption.

Cakes and meals

Commonly used commodities of this kind are soybean, groundnut, rapeseed, sesame and

sunflower meals in poultry feed. In cattle feed, in addition to these meals, others such as

cottonseed and copra are used as premium ingredients.

Feeds of animal origin

Meat meal, fishmeal, bone-meal and declaim phosphate of bone origin are the common raw

materials available for animal feeding. It is interesting to note that, with the exception of some

bone-based declaim phosphate, the Indian feed industry does not use materials of animal origin

in dairy cattle feed.

This was not out of fear of any zootomic problems but the result of deep –rooted beliefs that the

cow is sacred and must therefore be vegetarian. Now even the use of bone based declaim

phosphate is used instead.

Fishmeal and meat-meal were popularly used in poultry feed, but the increased production,

improver availability and better awareness of soybean meal has led to its replacing fishmeal and

meat meal in most poultry rations. It should be mentioned that farmers have faced production

problems owning to the bacterial contaminations of fishmeal and meat-meal. The quality of

fishmeal is also very poor.


13

Popular by – products

Some by – products are very nutritious and palatable to cattle, and these products from the bulk

of cattle feed. They include wheat bran, rice bran and oil-extracted rice bran tapioca, guar meal,

safflower meal, maize gluten and molasses.

A special mention should be made of Indian cattle feed’s unique use of hulls or shells, popularly

known as chunis in the local language. These shells come from pulses: horse gram, black gram,

mung bean and pigeon pea

Minerals and vitamins

Cattle feed is necessarily enriched with vitamins A and D3, and trace minerals such as iron, zinc,

manganese, copper, cobalt and iodine. Calcium and phosphorus are also included. Poultry feed is

enriched with all of these and all of the B complex vitamins.

Feed additives and supplements

Feed additives and supplements have played a very important role in enhancing the performance

of diary animals and , even more so , poultry. Today they are necessary in any feed formulation

and essential for the formulation of a balanced diet.

The additives and supplements used are antibiotic growth promoters (their usage is not banned in

India) prebiotics, enzymes, mould inhibitors, toxin binders, anti-coccidian supplements,

acidifiers, amino acids, by-pass fat, by-pass protein, non-antibiotic growth promoters, milk

boosters, antioxidants, feed flavors and herbal preparations of Indian origin. A number of these

products are imported from developed countries.

2.1.3FEED STANDARDS AND SPECIFICATIONS:-

For cattle and poultry, nutritional standards have been prepared with respect to the genotype,

environment, and quality of available raw materials, maintenance methods, production and

reproduction requirements, production capacity and phase of production.


14

The bureau of Indian Standards (BIS) is a central government organization that facilities

discussion between scientists and industry and prepares guidelines and specifications.

2.1.4FEEDING PRACTICES AND THE USE OF COMPOUND FEED:-

In India, the term “compound feed” refers to feed that is nutritionally balanced and has been

manufactured using the facilities of an analytical laboratory and under the supervision of

nutritionists. There are also a large number of small –scale feed mixers who produce feed for

local consumption. Such feed is termed “ self-mixed feed’ or “home-mixed feed”

2.1.5Cattle feed

Cattle feeding practices are very traditional. Farmers choose their own ingredients and prepare

their own formulations, believing that by these means they are able to pay more individual

attention to their cattle. The productivity of the cattle is limited because of their poor genetic

make-up, so high-quality compound feed (industry feed) may not necessarily generate a

significant improvement in productivity and this has hampered growth of the cattle feed industry

because most farmers are reluctant to use compound feed fully.

Instead they compromise by using such feed in proportions of 5 to 60% making up the balance

with their own formulations. It is only in the case of highly productive animals that compound

feed has been able to show its real potential and the importance of technology has been

demonstrated.

The share of compound cattle feed manufactured by the industry, in relation to the overall

potential, is low for the following reasons:

The cattle populations is fragmented and spread over large parts of the country. Farmers

low level of education and strong traditional beliefs mean that there is generally little

awareness if compound cattle feed.

More than 50% of the country’s total milk production comes from a very large number

of low –yielding cows and buffaloes. A further 25% of milk production comes from


15

buffaloes and only the remaining 25% of the total is produced by cross-bred and

improved cows.

Industrially manufactured compound cattle feed has proved its value for crossbred cows

and buffaloes but not for low-yielding cattle because of their genetic limitations. Home-

mixed feed is very frequently used for buffaloes and low yielding cattle.

The quality assurance of compound feed

The Indian feed industry employs the services of qualified nutritionist. Members of the industry

have their own analytical laboratories and either have their own research and development

facilities or have access to the research laboratories of agricultural universities or government

institutions.

The industry is fully committed to quality and its technical staff is knowledgeable about the

nutrition of cattle, buffaloes, layers and broilers. As well as the normal proximate principles,

other analyses are regularly carried out, such as amino acids, aflatoxin, ochratoxin, castor,

tannins and unease activity. There is a high degree of awareness of feed microbiology among

the millers of feed.

Feed raw materials and finished products are subjected to microbial counts, Salmonella and

Escherichia coli testing and mould count, and contaminated materials are rejected and sometimes

destroyed. Insurance cover is available. The feed millers have acquired the latest technologies

and modern equipment such as high-pressure liquid chromatography (HPLC) and near-infrared

(NIR) analyzers.

All vitamins, minerals and other feed additives are regularly analyzed using modern analytical

techniques. Regular seminars are conducted, short-term courses are arranged and Indian

scientists are constantly working to upgrade the quality of Indian feed and make it completely

safe for animal feeding.


16

The quality of Indian feed can be compared with that of any Western feed. Today it is common

to achieve a chicken house average of 310 eggs in 52 weeks, in layers, and body weights of 2.0

kg in less than six weeks, with a feed conversion ratio of between 1.8 and 1.9, in broilers. Dairy

feed can use the genetic potential of Indian cattle at is maximum. The quality of Indian feed is

satisfactory and innovation will continue.

2.1.6FUTURE SCOPE OF THE INDUSTRY:-

At the beginning of the twenty first century, Indian has a population of 1 billion people.

Although the annual growth rate has slowed from 2 to 1.8 percent, the bases is so broad that

changes in population dynamics are not perceptible. The population may stabilize by sometime

between 2030 to 2040 if all sections of society support family planning wholeheartedly.

The purchasing power of the middle class is growing (the middle class accounts for

approximately 300 million people ) and food habits are also changing. The Indian economic is

growing at the rate of 6 to 8 percent per annum. The livestock industry in Indian is the second

large contributor to gross domestic product(GDP), after agriculture, and account for 9 percent of

the total.

Consumption is likely to increase as follower per capita milk from 240 to 450g per year, per

capita eggs from 40 to 100 per years; and per capita broiler meat from 1000 to 2000g per year. A

major change is occurring in Indian on the economic front. The country has adopted a model

that leis midway between liberal and public sector production, but growth has been affected by

the poor performance of most of the public sector units, rising government costs and fiscal

deficit, and the economy has suffered.

A process of liberalization was set in motion by the government and has been implemented for

the last 8 to 10 years. This has caused India to open up and invite investment from

multinationals, liberalize imports, reduce government expenditure and remove public sector

businesses. It also means that the days of nationalization, unnecessary government controls and

restrictions will soon be over thanks to progress in the country’s economy.


17

India has entered into an agreement with its trade partners under the World Trade

Organization(WTO). The changes brought about by the liberalization process will be slow but

certain. The government is opening up import in a phased manner, and it is expected that this

process will be completed by April 2003. In the meantime, about 930 items, including

agricultural products, will be open for import under open general license from April 2001,

making it possible to import dressed chicken, milk and milk products.

Various livestock industry associations have taken issue with such imports in an attempt to

protect their members. If the livestock industry is affected, the feed industry will also be affected.

The government of India has raised the tariff on all poultry and poultry products from 35 percent

to the WTO boundary level of 100 percent. It therefore appears that there will be a level playing

field.

2.2COMPANY PROFILES

Kerala Feeds Ltd., a Kerala Government Company, was set up in 1995, incorporated under the

Companies Act. The total project cost was approximately Rs. 3,240 lakhs, out of which Rs.

2,109 lakh is Government equity, Rs. 631 lakhs is shareholding of various co-operative/Public

Sector Undertakings and Rs.500 lakhs is term loan from Nationalized bank. The Company is

headed by a Board of Directors. The plant was commissioned in late 1998 and commercial

production could start in January 1999, with one shift only. The second and third shift operations

commenced in June 1999 and July 2000 respectively.

The unit is located in Kallettumkara Village in ChalakudyTaluk of Thrissur District, Kerala, The

plant is situated in 27 acres of land.

Being an ISO 9001-2008 Company, all the process and technology in Kerala Feeds Limited,

meets international standards. Kerala Feeds Limited is also an ISI certificate holder Company in

India. Kerala Feeds Limited was also selected by the State Government for the most Result-

Oriented energy conservation drives during 2002-03.


18

The design of the plant is based on European Standards. Only dumping of raw materials and

stacking of Finished Feed is manual while the other processes are fully automated and controlled

from the plant Control Room. The plant has a dedicated PLC software controlling all the

activities of the plant from dumping up to bagging. One interesting feature of the plant is that the

design incorporates a post milling technology, where the entire batch is passed through Hammer

Mills and particles necessary for grinding are ground to a fine powder. This technology has been

marketed by us in the form of MMCP. The Pellet Mills, the Batch Mixer, the Hammer Mills and

the Molasses Mixer are imported from Netherlands.

The specialty of the plant is the high levels of automation that has been incorporated and this

automation has been helpful in attaining the consistency in quality through the repeatability of

the formulation during the batching process. The organization has procured and developed

material handling systems in tune with its requirements to lighten the burden of the employees.

Company has started another cattle feed manufacturing unit in Karunagapally and is in the

process of setting up units in Kozhikode and Thodupuzha. A mineral Mixture Plant has been set

up at Athavanad and a Densified Fodder Block Manufacturing Unit has been Set up at

Muthalamada.

Since raw materials account for more than 80% of the cost of production, purchase of raw

materials at competitive rates is the most crucial part of operation in cattle feed plant. All the raw

materials are seasonal and therefore are subject to frequent fluctuations in prices.

2.2.1 Company products:-

1. Kerala Feeds Plus

Enrich with energy sources

2 Kerala feeds special

3 Keramin

Balanced Mineral Mixture for Cattle


19

Mineral Mixture helps improving the growth in young calves

Mineral Mixture feeding improves milk and fat in dairy cows

Mineral Mixture feeding regulates production functions

Mineral supplement helps reducing inter calving period.

4 Kerabbit

Rabbit Feed

5 Kerala Feeds Rich

6 Kerala Feeds Elite

7 Calf starter feed

2.2.2 Vision

“Kerala feeds is committed to provide quality livestock feed and services to farmers at a

lower cost.”

2.2.3 Mission

Increase the production of balance compounded cattle feed in pellet form 650MT to

950MT per day.

To produce 300MT per day of other stock feed(goat, buffalo, elephant, laboratory

animals and pet feed) and poultry feed.

To manufacture appropriate type of feed and supplement of different stages of live

stocks.

To become a market driving company from market driven company.

Educate and train livestock farmers to practice scientific feeding to optimize livestock

productivity.

To support the development of knowledge based network on feed related activities.


20

To offer consultancy service for procurement of feed ingredients, logistic solutions, feeds

manufacturing setting up analytical labs.

To evolve a culture of innovation and creativity amongst the employees.

2.2.4 Objectives of the Kerala feeds limited:-

Kerala feeds ltd is committed to produce and market livestock feed in the pellet form and

enhance customer satisfaction through a quality system which registers continual improvements

by setting and reviewing function wise quality objectives.

The main objectives of Kerala feeds limited are:

Increase the production of balance compounded cattel feed in pellet form from 650 MT

per day.

To produce 300 MT per day of other liv stock feed (goat, buffalo, elephant, laboratory

animal and pet feed) and poultry feed.

To manufacture appropriate type of feed supplements for different stages of livestock.

To become a market driving company from market driven company.

To support the development of knowledge based network on feed related activities.

To offer consultancy services for procurement of feed ingredients logistic solutions feed

manufacturing setting up of feed analytical labs.

To achieve a turnover of Rs .

To evolve a culture of innovation and creativity amongst the employees.

To be an active partner in community development programs.

To produce and make available good compounded cattle feed at optimum price.

Create awareness of on feeding methods.

Educate farmers about the needs for quality feeding.

Supplement minerals and vitamins in their feed 2 level the inadequacy in natural feed

compound.


21

2.2.5FEATURES:-

The only balanced cattle feed which is produced by M.M.C.P.(milling, mixing, cooking,

and pelleting) technology.

Cooking of the feed up to 80 degree Celsius remove the moisture hence increases the life

of feed and helps easy digestion of the feed.

The raw materials are tested for quality at the fully equipped laboratory which also ensure

that least loss occurs while handling the feed, which in turn assures cleanliness.

Raw materials like coconut cake, cotton seed cake, etc. in the compounded feed. Hence it

is not necessary to feed the cattle separately with the items.

For increasing the milk yield protein, fat, vitamin and minerals are included in the correct

proportion.

Kerala feeds ltd, being a government undertaking is committed to continual improvement

of the product.

2.2.6ADVANDAGES OF KERALA FEEDS:-

1. Baked cattle feed helps the cattle’s for easy digestion

2. Imperishable in nature

3. Free from adulteration

4. Easy to handle

5. It contains standard proportion of fat, minerals & vitamins, which enhanced the milk

productivity.

6. Completely free from contamination

7. Production under the guidance of Kerala government

8. Price equality of the product regularly.

9. Fully computerized production process.

Improves quality of the product regularly


22

2.2.7Capital of the company:-

Capital refers to the money or money’s worth introduced or invested by the owner into business.

The authorized capital of the company is shares 30000of the Rs. 10000 each with power to

increase, reduce, alter or re-organize the capital as provided in the companies Act 1956. The

export sales are also used to functioning of the company. Current capital of the company is Rs

274050000, 27405 equity shares at Rs 10000 each.

2.2.8FUTURE SCOPE OF THE ORGANIZATION:-

Kerala feeds Ltd aims to provide a wholesome diet to ensure the health and wellbeing of cattle

and consequent increase in yield of milk.

The proposed hi – tech cattle feed plant at Karunagappally in Kollam is expected to ensure to

better availability of cattle feed to dairy farms in southern Kerala. The project is begin

implemented at a rapid place and the plant is expected to be operational. The plant and

machinery were now being put in place for the unit which is scheduled to be functional by

December KFL annual cattle feed production will go up from 195000 tons to 285000 when the

new unit becomes operational and its market share in Kerala will increase from 120 to 130

percentage.

Technology

The design of the plant is based on European standards. Only dumping of raw materials and

stacking of finished feed of manual while the other processes are fully automated and controlled

from the plant control room. The plant has dedicated PLC software controlling all the activities

of the plant from dumping up to bagging.

One interesting future of the plant is that the design incorporates a post milling technology,

where the entire batch is passed through hammer mills and particles necessary for grinding are

group to a fine powder. This technology has been marketed by US in the form of MMCP. The


23

pellet mills, the Batch Mixer , the hammer mills and the molasses mixer are imported from

Netherland.

The specialty of the plant is high levels of automation that has been incorporated and this

automation has been helpful in attaining the consistency in the quality through the repeatability

of the formulation during the batching process. The organization has procured and developed

material handling system in tune with its requirements to lighten the burden of the employees.

Quality policy

Our quality is produce and distributed good quality compounded cattle feed in the pellet form,

mineral mixture and other and fodder materials through a quality system, which registers

continual improvement by setting and reviewing functional quality objective aimed to create

enhanced customer satisfaction. The quality policy will be communicated to all and will be

reviewed periodically for continual suitably. The management and staffs are determined and

committed to achieve this quality policy and to make dairying.

Quality Management Principles:-

Leadership

Involvement of People

Process approach

System approach to management

Continual improvement

Factual approach in decision making

Mutually beneficial supplier relationship


24

The management of the KFL recognizes that measurement and monitoring of customer

satisfaction. As a vital tool for evaluating the performance of the KFL. Customer complaints

received customer care cell (CCC) are properly monitored for prompt redresses in the best

possible ways to ensure customer delights and thus keep up the quality level.

The financial and accounts department tries to improve the effectiveness and efficiency of the

quality management system by providing positively the finance result to the concerned and

suggest them for suitable improvement actions in the monthly performance reviewing meeting.

2.2.9COMPETITORS:-

KSE (Kerala solvent extraction)

Milma

SKM

Godrej

2.2.10DEPARTMENTS

1.PROJECTS

Functions:

1. Project Identification

2. Project Preparation ( Feasibility Study)

3. Project Appraisal ( Scrutiny & Selection )

4. Project Programming (Detailing )

5. Project Implementation

6. Project Completion & Commissioning


25

2. PURCHASE

Functions:

Planning and procurement of Raw Materials and Packing Materials required for Manufacture of

Cattle Feed & Mineral Mixture Plant, Spares and Capital items required for Engineering Stores,

Lab Equipments , Glass wares and Chemicals, Furniture and Fixtures, other miscellaneous

itemsAll purchases of materials other than that of local purchases pertaining to the units are

centralized at the Corporate Office at Kallettumkara.

3. MARKETING

Advertisement, Marketing & Sales Promotion activities:

Functions:

1. Advertisement, Marketing & Sales Promotion activities coming under the purview of

Marketing Department shall be centralised.

2. Preparation of proposals/agenda items for the Board Meeting relating to the area of

work allotted to him and implementation of Board’s Decision.

3. Preparation of correspondences with the Govt. relating to the area of work allotted to

him and submission of the same for Managing Director’s approval.

Selling & Distribution activities:

Functions:

1. Selling and distribution activities of finished goods from various locations coming

under the purview of Marketing Department shall be centralized.

2. Preparation of proposals/agenda items for the Board Meeting relating to the area of

work allotted to him and implementation of Board’s Decision.


26

3. Preparation of correspondences with the Govt. relating to the area of work allotted to him and

submission of the same for Managing Director’s approval.

4. PERSONNEL & ADMINISTRATION

Functions:

The following corporate functions entrusted shall be centralized.

1. Recruitment, Induction and placement.

2. Framing Personnel Policies and Rules.

3. Creation and Abolition of Posts

4. Promotions, Transfers and Postings

5. Disciplinary Actions

6. Resignations, Retirements and Superannuation

7. Annual Performance appraisals

8. Maintenance of Service Records and Personnel Files.

9. Issue of Salary/ Service/Experience certificate to employees

10. Framing and maintenance Gratuity of employees

11. Framing of welfare schemes such as provident fund, ESI, Gratuity Medical Benefits,

Group Personnel Accident Insurance, Deposits linked insurance, Incentive schemes,

Bonus, Pension etc.

12. Trade Union Matters.

13. Industrial relations.


27

14. Administrative functions of the Company.

5. MATERIALS

Functions:

1. Receipt of Raw material

2. Issue of Raw material

3. Receipt of spares

4. Issue of spares

5. Receipt of finished feed

6. Dispatch of finished feed

7. Inventory control

6. PRODUCTION

Functions:

The functions of Production & Maintenance Department includes Planning & Execution

of Production Schedule, Maintenance of Equipments and Machineries. Department also

initiate development works related to R&D for supporting plant activities and undertake

new projects.


28

7. QUALITY CONTROL

Functions:

1. Incoming Raw material Quality Control

2. In process Quality Control

3. Finished Feed Quality Control

4. Extension Activities related to feeds & Feeding

5. Analysis of external feed and raw material samples

6. Research & Development Activities

8. FINANCE & ACCOUNTS

Functions:

Finance Functions:

1. Optimum utilization of funds without endangering the financial solvency of the

Company through decisions such as Capital Budgeting, Profit Planning, Tax

Management and Working Capital Management.

2. To ensure control over expenses by constantly monitoring actual with that of

budgeted figures.

3. To find out room for Cost control and Cost reduction by constantly monitoring

various operational activities.


29

Accounting Functions:

1. Receipts and payments of money are accurately recorded so that all payables and

receivables are correctly reflected.

2. All Assets and Liabilities are recorded and classified properly in accordance with

Statutory requirements to reflect the financial position of the company as at a

particular date.

3. All Income and Expenses of a particular period are accurately reflected in accordance

with relevant statutes to gauge the working results of that period.

4. To ensure truth and fairness of financial statements namely Balance Sheet and Profit

& Loss Account

9. SECRETARIAL DEPARTMENT

Functions:

1. To conduct Board Meetings, Audit Committee Meetings and shareholders Meetings as

per the provisions of Companies Act, 1956.

2. To file periodical returns to the authorities concerned as per Companies Act, 1956.

3. To prepare the agenda notes for the above meetings and Minutes of meetings and co-

ordinate with Departments for implementation of Board’s decisions.


30

10.IT DIVISION

Functions:

1. Electronic Data Processing (EDP) of the company in vital areas such as Purchase

Management, Marketing Management, Management Information Systems etc.

2. Development and maintenance of ERP (Enterprise Resource Planning) Solutions in the

Company.

3. Maintenance of software as well as hardware.

4. Timely up-gradation of software and hardware.

5. Establishing high-end Communication as well as computer technologies to the Company.

6. Arrange adequate exposure of new cutting edge technologies to the employees.

2.2.11BOARD OF DIRECTORS

The following are the present Directors of the company:-

1. Adv P C Joseph(Ex-MLA) - Chairman

2. Dr.Ani.S.Das - Managing Director

3. Smt. T S Sheeja - Director

4. Shri O M Mohanan - Director

5. Dr. K G Suma -Director

6. Smt. K T Sarojini - Director

7. Dr. M Suresh Kumer - Director

8. Dr. Jose James - Director

9. Dr.Noushad Ali K N - Director

10. Shri P K Pathak, IFS - Director

11. ShriSalimmadavoor - Director


31

2.3 SWOT ANALYSIS

Strengths

1. Leadership in the market

Kerala Feeds Ltd. is the market leader in this industry and thus it has a great market and

wide customer base. Kerala Feeds has thus a great market share and enjoys huge number

customers.

2. Reputation & brand image of the company & consistent quality of its products

Kerala feeds since its establishment has maintained high quality and enjoys a high brand

name and reputation.

3. Fully computerized plant

The plant is fully computerized and thus it makes the operations very easy and the

production process is more simpler and efficient. This has helped in faster operations.

4. Excellent infrastructure for manufacturing products

Kerala feeds ltd. has a strong infrastructural facilities. The plant is highly equipped and

computerized. The plant has a well-constructed bulidings with good communication set-

up. The factory is highly secured.

5. Continuous availability raw materials

The company gets continuous raw materials that are of good quality. The supply is

continuous and never faces scarcity.

Weakness:

1. Highoverhead cost due to the electricity consumption

The overhead cost is too high especially the electricity charges. Since the company is

completely computerized and the production has to take place 24 hours the electricity

consumption and charges are high.


32

2. Delay in receiving g payments

The dealers takes time to do the payment. This delay further creates problems in the

operation and functioning of the company.

3. Problems with the trade union

There is always faceoff between the employee union and the management. This

frequent shut downs creates huge loss for the company

4. Frequent breakdowns of machineries

The frequent break down of machineries always leads to production delays and huge

expenses.

5. Huge wastage

There is wastage of resources or raw materials. This leads to high expenses and thus

reduce the profit margin.

Opportunities

1. Expanding its distribution areas

Kerala feeds can expand its plant. As if now it has three plans and further expansion can

help in improving their business.

2. Growing demand of its products

There is huge demand for the product especially there is a high demand from the

neighbour states like Tamil Nadu and Andhra Pradesh.

Threats

Probable entry of multinational entities

There are various foreign companies that has entered into the market. This has reduced

the market share and increased competition. Competitors like feedhealthWll.


33

Political Problems

The political problems like frequent harthals and strikes leads to losses and delays in

production.

The changes in the political parties also effects the management and the policies.

Price increase in crude oil

The increment in price levels of crude oil leads to increased input cost as the

transportation cost involved in transporting raw materials also increases.


34

2.4 financial statement

KERALA FEEDS LIMITED,KALLETTUMKARA

BALANCE SHEET AS AT 31ST MARCH 2012

I ENQIRY AND LIABILITIES Note No AS AT 31.3.2012 AS AT 31.3.2011

Amount in.lakhs Amount in.lakhs

1.Share holder's fund

a.Share capital 2 2740.5 2740.5

b. Reserve and surplus 3 1719.05 4459.55 3098.93 5839.43

2.share application money pending allotment 1125 1125 0 0

3. Non currentliabilities

a. Loag-term borrowings 4 1307.39 0

b. Deferred tax liablities(Net) 5 29.3 0

c. Other long term liabilities 6 589.16 1000.02

d. Long-term provisions 7 227.27 2153.12 164.43 1164.45

4. Current liabilities

a. Short- term borrowings 0 0

b. Trade patables 8 1185.06 1377.78

c.Other current liabilities 9 1392.45 464.85

d. Short-term provisions 10 87.46 2664.97 43.8 1886.43

TOTAL 10402.64 8890.31

ll ASSETS

1.Non-current assets

a. Fixed assets

i. Tangible assets 11 3738.71 1271.45

ii. Intangible assets 12 44.72 40.57

iii. Capital work-in progress 13 585.31 3523.63

iv. Intangible assets under development 0 4368.74 0 4835.65

b.Non current investments 0 0 0 0

c. Defferred tax assets(Net) 5 0 0 37.2 37.2

d. Long-term Loans and Advances 14 442.6 442.6 358.2 358.2

e. Other non-current assets 0 0 0 0

2. Current assets

a. Current investments 0 0

b. Inventories 15 1464.03 1711.62

c. Trade receivables 16 1127.02 1062.92

d. Cash and cash equivalents 17 2797.71 692.91

e. short-term loans and advances 18 151.69 183.77

f. Other current assets 19 50.85 5591.3 8.04 3659.26

10,402.64 8890.31

TOTAL

Significant accounting policies 1

Additional information 29


35

KERALA FEEDS LIMITED, KALLETTUMKARA

PROFIT &LOSS STATEMENT FOR THE YEAR 31 ST MARCH 2012

I REVENUE Note. No AS AT 31.3.2012 AS AT 31.3.2011

Amount in. Lakha Amount in. Lakha

l Revenue from operations 20 26723.2

7 26723.2

7 22664.2

3 22664.2

3

ll Other Income 21 318.74 318.74 206.45 206.45

lll Total Revenue(l+ll) 27042.0

1 22870.6

8

EXPENSES

1.Cost if materials consumed 22 20 937.04

20937.04

19257.09

19257.09

2.Changes in inventories of finished goods 23 143.77 143.77 -142.08 -142.08

3.Employee benefit expenses 24 1027.74 1027.74 763.14 763.14

4.Finance costs 0 0 0 0

5.Depreciation and amortisation expenses 25 210.42 210.42 210.06 210.06

6. Other expenses 26 3514.41 3514.41 3024.14 3024.14

IV Total Expenses 25833.3

8 23112.3

5

V Profit before exceptional and extraordinary items and tax (lll - lV) 1208.63 -241.67

VI Exceptional items 0 0 0 0

VII profit before extraordinary items and tax (V -Vl) 1208.63 -241.67

VIII Extraordinary items 0 0 0 0

IX Profit/(loss)for the year (VII - VIII) 1208.63 -241.67

X add: Prior period adjustments 27 8.63 8.63 9.4 9.4

XI Profit/(loss) befor tax (IX+X) 1217.26

XII Tax expenses

1. Current tax 282.41 0

2. Deferred tax 66.49 -11.59

3. Mat Credit Availed 33.31 382.21 0 -11.59

XIII Profit/(loss) for the period from continuing operations (XI - XII) 835.05 -220.68

XIV Profit/(loss) from discontinuing operations 0 0

XV Tax expenses of discontinuing operations 0 0 0 0

XVI Profit/(loss) from discontinuing operations (after tax ) (XIV + XVI) 0 0

XVII Profit/(loss) for the year (XIII + XVI) 835.05 -220.68 XVIII Basic and diluted earnings per equity share(R.s) 28 3047.05 -805.24

Nominal value per equity share(R.s) 10000 10000

Significant accounting policies 1

Additional information 29


CHAPTER 3


36

3.1 THEORETICAL CONCEPTS

MARKET

The market consists of all potential customers having particular needs and wants that might be

willing and able to engage in exchange to satisfy that needs and wants. In traditionally a market

was the place where buyers and sellers gather to exchange their goods.

MARKETING

Marketing is the process of communicating the value of a product or service to customers, for the

purpose of selling that product or service. Marketing can be looked at as an organizational

function and a set of processes for creating, delivering and communicating value to customer

relationship management that also benefits to the organization. It is the science of choosing the

target market through market analysis and market segmentation, as well as understanding

consumer behavior and providing superior customer value.

SCOPE OF MARKETING

Marketing is typically seen as the task of creating, promoting and delivering goods and services

to consumers and businesses. Marketing are skilled in stimulating demand for a company’s

product and logistics professionals are responsible for supply management, marketers are

responsible for demand management. Marketing managers seeks to influence the level, timing

and composition of demand to meet the organization’s objectives.

CUSTOMER

Any person who buys merchandise from a store or other marketer. The customer of a retail

establishment is the ultimate consumer.


37

CONSUMERS

Consumers are used in respect of organization who consumers a particular product or service on

the basis of their consumption habit. Consumer is the most important part of a business. Without

consumer no marketing takes place consumer is the key to marketing and hence consumer is the

king.

MARKETING MIX

The marketing manager concentrates on four major decision areas while planning the marketing

activities, namely 1. Product, 2. Price, 3. Place, 4. Promotion. These 4p’s are called as elements,

of marketing and together they constitute the marketing mix. All these are inter-related because a

decision in one area affects decisions in other areas.

According to Philip kotler“Marketing Mix is the set of controllable variables that the firm can

use to influence the buyer’s response”. The controllable variables in this context refer to the

4p’s.

1.Product

Product refers to the good and services offered by the organization. Example:- A pair of

shoes, a plant of dahi-vada all are products. These are purchased because they satisfy one or

more of our needs. We are paying nit for the tangible products but foe the benefits it will

provide. Product can be described as a bundle of benefits which a marketer offers to the

consumer for a price.

2. Price

Price is the amount charged for a product or service. It is the second most important element

in the marketing mix. Fixing the price of the product is a tricky job. Many factors like demand


38

for a product, cost involved, consumer’s ability to pay, price charged by competitors for similar

products, government restrictions ect. Have to be kept in mind while fixing the price.

The price is the value of a product paid by the customer. Price of any product depends upon the

cost of raw material consumed, production cost, packing cost and transportation cost etc.

Kerala feed Ltd. is also fixing the price with proper reference of all the above aspects. The price

of specific products cost is high comparatively with other products.

3. place

Goods are produced to be sold to the consumers. They must be made available to the consumers

at a place where they can conveniently make the purchase. Example : - woolens are

manufactured on large scale in Ludhiana and purchase them at a store from the nearby market in

your town. The organization has to decide whether to sell them directly to the retailer or through

the distributors or wholesalers.

4. Promotion

If the product is manufactured keeping the consumer needs in mind, is rightly priced and made

available at outlets conveniently, to them but the consumer is not made aware about its price,

features and availability etc. it’s marketing effort may not be successful. Therefore, promotion is

an important ingredient of marketing mix as it refers to a process of informing, persuading and

influencing a consumer to make the choice of the product to be bought. Promotion is done

through men’s of personal selling, advertising, publicity and sales promotion.


39

BRAND

Brand is the “name, term, design, symbol or any other feature that identifies one seller’s product

distinct from those of other sellers. Brands are used in business, marketing and advertising. A

modern example of a brand is Coca Cola which belongs to the Coca Cola company. Brand

owners manage their brans carefully to create shareholders value and band valuation is an

important management technique that describes money value to a brand and allows marketing

investment to be managed to maximize shareholder’s value .

BRANDING

It is important to know what brans are. A brand is the idea or images of a specific product or

service that consumers connect with, by identifying the name, logo, slogan or design of the

company who owns the idea or image. Branding is when that idea or image is marketed. So that

when there are many other companies offering the same service or product. Advertising

professionals works on branding not only to build brand recognition, but also to build good

reputations and a set of standards, which the company should strive to maintain or surpass .

Any person who carries on business in purchasing, selling, supplying or distributing goods and

also includes works contractor, company, cooperative society, broker, commission agent,

auctioneer or any other mercantile agent for the consideration of cash, commission and deferred

payment.

CUTOMERS SATISFACTION

Satisfaction in level of persons felt stat resulting form company’s products perceives

performance in relational to the person’s expectations. Satisfaction is a function of the difference

between the perceived performance and expectations. Company seeks to win in today’s market.

The must track their dealers expectations, perceive company performance and dealers

satisfaction.

While assessing the satisfaction level a company must not conclude that it can get full picture of

customers satisfaction and dissatisfaction by simply running complaints and suggestions. As


40

sometimes customers may feel that their complaints are minor or that they will be made to feel

unhappy or that normally will be offered the result is that the company has need Lesley lost

customers.

Therefore companies instead of using complaints level as measure of customer’s satisfaction,

obtaining a direct measure of customers satisfaction of conduction the periodic survey would

provide more appropriate measures. The questionnaire can be made to a random sample of their

recent customers.

To find out how they fell about various aspect of the company’s performance. They can also

solicit dealers view on the competitor’s performance.

The respondents can be asked to list out problems they have, had with the offer and to list out

improvements they could suggest companies would also ask the respondents to rate various

elements of the offer in terms of the importance of each element and how well the company has

performed.

Exclusive customers needed to bring customers satisfaction. Many dealers like to develop

exclusive channels for their products. The strategy in which the producer allows only certain

concepts to carry its products is called exclusive design when the producer requires that these

dealers should not handle expeditor products its strategy is called exclusive dealing, both parties

benefits from exclusive arrangements.


CHAPTER 4


41

4.1DATA ANALYSIS AND INTERPRETATION

1.The number of years the customer are use the product with Kerala feeds

Table no: 1

No of Year No of respondents Percentage

1-3 Years 15 10

3-5 Years 23 15.3333333

5-10 Years 40 26.6666667

Above 10 Years 72 48

Source: Questionnaire


42

Source: Table

INTERPRETATION :The above table indicates that 48% of the customers are dealing above 10

years. 5 – 10 years experienced customers are 26.6% and 15% have 3 – 5 years experienced and

the rest 10% have up to 1 – 3 years’ experience.

0

10

20

30

40

50

60

1-3 Years 3-5 Years 5-10 Years Above 10 Years

Percentage

Percentage


43

2. The customer satisfaction with the quality of the product

Table no: 2

Opinion No of respondents Percentage

Yes 150 100

No 0 0



44

Source: Table

INTERPRETATION :

All of the responds of Kerala Feeds Product rated that the quality of the products provided by

the company is satisfied because that Kerala Feeds Ltd is focused more on quality oriented

products to their customers.

0

20

40

60

80

100

120

Yes No

Percentage

Percentage


45

3. Factors that influenced to the purchasing the product.

Table no: 3

Reasons No of respondents Percentage

Quality 143 95.3333333

Price 3 2

Sales promotion activity 1 0.66666667

Brand image 3 2



46

Source: Table

INTERPRETATION :

95% of the respondents suggested that the quality is most important factors which motivate the

customers of Kerala Feeds Ltd. 2% each of them said that price and brand image are the most

important factor which motivate the customers of the company, remaining 1% of the opinioned

that sales promotional scheme.

0

20

40

60

80

100

120

Quality Price Sales promotion activity

Brand image

Percentage

Percentage


47

4. Weather customer have used any other company products.

Table no: 4

Particulars No of respondents Percentage

Yes 15 10

No 135 90



48

Source: Table

INTERPRETATION :

The above data reveals that 90% of the customers are used no other products and only 10 % are

used other products.

0

10

20

30

40

50

60

70

80

90

100

Yes No

percentage

percentage


49

5. The customer satisfied with the price of the product

Table no: 5

Satisfied No of respondents percentage

Yes 100 66.6666667

No 50 33.3333333



50

Source: Table

INTERPRETATION:

The above data reveals that 66.6% of the respondents are satisfied with price and 33.3% are not

satisfied with the price of products.

0

10

20

30

40

50

60

70

Yes No

percentage

percentage


51

6. Respondents regarding the recommend of product the other customer .

Table no:6


Yes 139 92.6666667

No 11 7.33333333



52

Source: Table

INTERPRETATIONS :

92.6% of the respondents satisfy to recommend the products to other customers and 7.3%

respondents are not satisfy to recommend to other customers.

0

10

20

30

40

50

60

70

80

90

100

Yes No

Percentage

Percentage


53

7. Need of more promotional activities for the company’s products.

Table no: 7.


Yes 93 62

No 57 38



54

Source: Table

INTERPRETATION :

62% of the respondents suggested more promotional activity for the products and 38% of the

respondents are suggested the same promotional activities.

0

10

20

30

40

50

60

70

Yes No

Percentage

Percentage


55

8. Response regarding the purchasing frequency of products at Kerala feed Ltd.

Table no:8.

Particulars No. of respondents Percentage

Daily 5 3.33333333

Weakly 17 11.3333333

Monthly 128 85.3333333

Quarterly Nil 0



56

Source: Table

INTERPRETATION :

The above table indicates that 85% of the respondents suggested that the purchasing frequency of

the products at Kerala Feeds Ltd is on monthly basis, 11% of them said that their purchasing

frequency of the products at the company is on weekly, 3% of them opinioned that their

frequency of purchasing products in on daily basis and quarterly purchases is nil.

0

10

20

30

40

50

60

70

80

90

Daily Weakly Monthly Quarterly

Percentage

Percentage


57

9.Response regarding the rate of marketing potential and demand for the products at Kerala feed

Ltd.

Table no: 9.


Excellent 110 73.33

Good 30 20

Average 10 6.66

Poor Nil 0



58

Source: Table

INTERPRETATION :

73.3% of the respondents suggested the rate of market potential and demand for the products of

Kerala Feeds Ltd is excellent, 20% of them said that it is good, 6.6% of the

respondentsopinioned that it is average and none of them reviewed told that the rate of market

potential and demand for the products marketed by Kerala Feeds Ltd is poor.

0

10

20

30

40

50

60

70

80

Excellent Good Average Poor

Percentage

Percentage


59

10. Satisfaction level regarding rate of distribution system provided by Kerala feed Ltd.

Table no:10.


Highly satisfied 80 53.33

Satisfied 65 43.33

dissatisfied 5 3.3333333



60

Source: Table

INTERPRETATION :

The above data reveals that 53.3% of the respondents are highly satisfied with the distribution

system provided by Kerala Feeds Ltd, 43.33% of them are satisfied 3.33% are dissatisfied with

the distribution system of Kerala Feeds Ltd.

0

10

20

30

40

50

60

Highly satisfied Satisfied dissatisfied

Percentage

Percentage


61

11. What is the most common promotional method of Kerala feed Ltd.?

Table no:11.


Advertisement 67 44.67

Discount 24 16

Sales promotion 59 39.33

Personal selling Nil 0



62

Source: Table

INTERPRETATION :

44.67% of the respondents suggested that the advertisement is the most common promotional

method of Kerala Feeds Ltd, 39.33% said that sales promotion is the most common promotional

method , 16% of them suggested that discount is the most common promotional method of

Kerala Feeds Ltd and none of them told that about personal selling.

0

5

10

15

20

25

30

35

40

45

50

Advertisement Discount Sales promotion Personal selling

Percentage

Percentage


62

12.Response regarding the rating of packaging quality of products at Kerala feed Ltd.

Table no:12.


Excellent 60 40

Good 80 53.3333333

Average 10 6.66666667

Poor Nil 0



63

Source: Table

INTERPRETATION :

53.3% of the respondents suggested that the packaging quality of products at Kerala Feeds Ltd is

good, 40% of them said that the packaging quality of products by the company is excellent,

remaining 6.6% of them told that the packaging quality of the products is average and none of

them opinioned that the packaging quality of the products at Kerala Feeds Ltd.

0

10

20

30

40

50

60

Excellent Good Average Poor

Percentage

Percentage


64

13. Category of products at Kerala feed Ltd. is having the demand in the market.

Table no:13.


Kerala feeds plus 50 33.33

Kerala feeds special 60 40

Keramin 10 6.67

Kerabbit 7 4.67

Calf starter feed 8 5.3

Other products 15 10



65

Source: Table

INTERPRETATION :

40% of the respondents suggested that Kerala Feeds Special manufactured by Kerala Feeds is

having the highest demand in the market, 33.3% of respondents is suggested that Kerala Feeds

plus, 6.67% of them said that Keramin, 4.47% of them said that Kerabbit, 5.3% of them

suggested that Calf starter feed and the other products having the demand of the products is

10%.

0

5

10

15

20

25

30

35

40

45

Kerala feeds plus

Kerala feeds special

Keramin Kerabbit Calf starter feed Other products

Percentage

Percentage


66

14. The medium through which customer came to know about this product.

Table no:14.


Advertisement 26 17.3333333

Word of mouth 97 64.6666667

Dealers 27 18



67

Source: Table

INTERPRETATION :

64.6% of the respondents said that they know about the product through word of mouth, 18% of

them know through dealers and 17.3% of them said that they know the product through

advertisement.

0

10

20

30

40

50

60

70

Advertisment Word of mouth Dealers

Percentage

Percentage


68

15. Suggestion regarding improving the performance of product sale by Kerala feed Ltd.

Table no:15.


By improving advertisement 50 33.33

By providing discount 70 46.66

By improving quality Nil 0

By improving transportation service 30 20



69

Source: Table

INTERPRETATION :

46.66% respondents suggested that the Kerala Feeds Ltd should improve its discount system,

33.33% of them said that improve the advertisement given by Kerala Feeds Ltd, 20% of them

suggested about the transportation and none of them told that the company should improve its

quality of the product because Kerala Feeds Ltd always providing quality oriented product to all

its customers.

0

5

10

15

20

25

30

35

40

45

50

By improving advertisement

By providing discount By improving quality By improving transportation service

Percentage

Percentage


70

16. Satisfaction level regarding the overall performance of Kerala feed Ltd.

Table no:16.


Yes 125 83.3333333

No 25 16.6666667



71

Source: Table

INTERPRETATION :

83.33% respondents satisfied with the overall performance of the Kerala Feeds Ltd and 16.66%

respondents not satisfied with the overall performance of the Kerala Feeds Ltd.

0

10

20

30

40

50

60

70

80

90

Yes No

Percentage

Percentage


CHAPTER 5


72

5.1FINDINGS

To analyse the customer satisfaction of the products of Kerala Feeds Ltd.:

1. It’s found that all the respondents are satisfied with the quality of Kerala Feeds

products. 83.33% of the respondents were satisfied with the overall performance and

products of Kerala feeds. ltd.

To find out the factors effecting customer buying behaviour of Kerala Feeds Ltd.

1. 95% of the respondents suggested that the quality is most important factors which

motivate the customers of Kerala Feeds Ltd. 2% each of them said that price and brand

image are the most important factor which motivates the customers of the company,

remaining 1% of the respondents were of the opinion that sales promotional schemes

helps in making purchase decision.

To understand the promotional strategies of the organisation.

1. 62% of the respondents suggested that Kerala Feeds Ltd needs more promotional

activities for the products and 38% of the respondents suggested that the existing

promotional activities are satisfactory.

2.44.67% of the respondents suggested that the advertisement is the most common

promotional method of Kerala Feeds Ltd, 39.33% said that sales promotion is the most

common promotional method , 16% of them suggested that discount is the most common

promotional method of Kerala Feeds Ltd. There is no mode of personal selling in Kerala

Feeds Ltd.

3. 53.3% of the respondents suggested that the packaging quality of products at Kerala

Feeds Ltd is good, 40% of them said that the packaging quality of products by the

company is excellent, remaining 6.6% of them told that the packaging quality of the

products is average.

4. 64.6% of the respondents said that they know about the product through word of

mouth, 18% of them know through dealers and 17.3% of them said that they know the

product through advertisements.


73

To understand whether the distribution system is effective or not.

1. The survey showed that 53.3% of the respondents are highly satisfied with the

distribution system provided by Kerala Feeds Ltd, 43.33% of them are satisfied and

3.33% are dissatisfied with the distribution system of Kerala Feeds Ltd.

Other findings

1. The survey reveals that 66.6% of the respondents are satisfied with price and 33.3%

are not satisfied with the price of products.

2. 73.3% of the respondents suggested the rate of market potential and demand for the

products of Kerala Feeds Ltd is excellent, 20% of them said that it is good, 6.6% of the

respondents opinioned that it is average and none of them reviewed told that the rate of

market potential and demand for the products marketed by Kerala Feeds Ltd is poor.

3. 83% were satisfied with the overall performance of Kerala Feeds Ltd.


74

5.2 SUGGESTIONS

1. The main plus point of Kerala Feeds Ltd is its quality, so the company should maintain

the quality of products and apply more innovative techniques in this field.

2. When marketing distribution increase , sales volume also increases so distribution

channel has to be improved.

3. Continuous and powerful advertisement are to be given in order to face the competition

effectively and efficiently

4. The company should improve the transportation services as to make sure customers are

delivered on time hence are satisfied.

5. Company should start the personal selling for improving the sales.

6. Company should develop their sales out of Kerala expanded to all India level. If needed

establish subsidiary unit warehouse unit.

7. May be a new product can be developed for home pets especially for cats and dogs .

8. Maintain good relation with the trade union so that shut down and strike could be avoided

and production doesn’t get effected.

9. Online booking order could be initiated. This helps in bulk booking.

10. Make sufficient changes in production to avoid wastage and thus the profit could be

increased.


75

5.3 CONCLUSION:

To conclude, Kerala Feeds Ltd enjoys a high level of customer satisfaction with regards

to its cattle feed products and majority of consumers surveyed preferred Kerala Feeds

Brand. It is well known in the market for its quality. From the survey I have understand

that the most of the consumers are highly satisfied with the quality of the products. The

survey was an analytical study in an organization namely Kerala feeds ltd., Thrissur with

specialization in marketing department, concentration of the study is on one of the area of

marketing function namely consumer preference towards the Kerala feed ltd.

The survey helped in knowing whether the customer are satisfied with the products or

not. And it was found that most of the respondents are satisfied with the Kerala products.

It also helped in identifying the factors that is most important for the customers in making

purchase decisions.

It also tried to understand the promotional strategies of the organisation and the

customers perception. It also analysed the responses to understand whether the

distribution system is effective or not.


BIBLIOGRAPHY

WEBSITE

www.Keralafeeds.com

www.Google.com cattle feed industry

http://www.academia.edu/1956762/project_report

http://keralafeeds.com/RTI-act.htm

http://www.researchgate.net/publication/259451483_Cattle_Feed_Market_in_Kerala_A_Study_of_

Purchasing_Pattern_and_Buyer_Behaviour

http://en.wikipedia.org/wiki/Animal_feed

http://www.ijsrp.org/research-journal-0613.php

http://www.slideshare.net/supabuoy/0601006-study-on-customer-satisfaction

PUBLICATIONS

Company profile

Records of Kerala feed Ltd.

Kerala feeds manuals

Kerala feeds annual report

REFERENCE BOOKS

PHILIP KOTLER, ”marketing management ”, “principle of marketing”

http://keralafeeds.com/RTI-act.htm

http://www.researchgate.net/publication/259451483_Cattle_Feed_Market_in_Kerala_A_Study_of_Purchasing_Pattern_and_Buyer_Behaviour

http://www.researchgate.net/publication/259451483_Cattle_Feed_Market_in_Kerala_A_Study_of_Purchasing_Pattern_and_Buyer_Behaviour

http://en.wikipedia.org/wiki/Animal_feed

http://www.ijsrp.org/research-journal-0613.php


Customer Satisfaction Questionnaire

Dear customer

Thank you for giving us the opportunity to serve you better. Please help us by taking a few

minutes to tell us about the service that you have received so far. We appreciate your business

and want to make sure we meet your expectations.

Sincerely,

1. Name of the customer :

2. Age :

3. Occupation :

4. Address :

5.Income level (monthly) :5000-10000 , 10000-15000 ,

15000-20000 ,20000-25000 ,above 25000 .

6. The number of year the customer are dealing with Kerala feed ?

a. . 1-3 years, b. 3-5 years,c. 5-10 years, d. Above 10 years.

7. Are you satisfied with the quality of the product ?

a. Yes b. No

8. Factors that influenced you to purchase the product ?

a. Quality b. Price

c. Sales promotion activities d. Brand image

9. Do you have use any other company products?

a. Yes b. No


10. Are you satisfied with prices of Kerala feeds. Ltd.?

a. Yes , b no

11. Will you recommend the same product for other customers ?

a. Yes b. No

12. Do you think that the company needs more promotional activities for the

Product ?

a Yes b. No

13. What is your opinion about the purchasing frequency of products at Kerala feed. Ltd ?

a. Daily, b. Weakly, c. Monthly, d. Quarterly

14. How do you rate the market potential and demand for the products of

Kerala feeds. Ltd.

a. Excellent, b. Good, c. Average, d. Poor.

15. How do you rate the distribution system of Kerala feeds. Ltd.?

a. Highly satisfied, b. Satisfied, c. Dissatisfied

16. What is the most common promotional method of Kerala feeds. Ltd.

a. Advertisement, b. Discount,

c. Sales promotion d. Personal selling

17. How would you rate the packaging of products at Kerala feeds. Ltd. ?

a. Excellent, b. Good, c. Average, d. Poor


18. Which product of Kerala feeds. Ltd. Is having the highest demand ?

a. Kerala feeds plus b. Kerala feeds special

c. Keramind. Kerabbit

e. Calf starter feed f. Other products

19. How did you came to know about this product ?

a. advertisementb. Word of mouth, c. Dealers.

20. What are your suggestions to Kerala feeds. Ltd. for improving the

Performance of sale ?

a. By improving advertisement, b. By providing discount

c. By improving quality, d. By improving transportation services

21. Are you satisfied with the overall performance of Kerala feeds. Ltd. ?

a. Yes. b. No.


Documents

INTERNSHIP REPORT ON A STUDY ON CUSTOMER